Document:

Exhibit 10.14

 

 

Polca Cash Pooling

 

Agreement

 

 

 

THIS AGREEMENT (the “Agreement”) is entered into

 

BETWEEN

 

(1)         Polca, a Belgian limited company with its registered office at 5 Place du Champ de Mars, Brussels, Belgium, registered with the Brussels register of legal entities under number 0833.312.286, represented by Guillaume Humbert, Director, and Irène Florescu, Director (“Polca”); and

 

(2)         the Participating Companies which have signed the act of accession to this Agreement

 

(Polca and the Participating Companies are hereinafter collectively referred to as the “Parties” and individually as a “ Party”).

 

WHEREAS:

 

(A)                              All Participating Companies which have acceded to and which will accede to this Agreement form a coherent group of legal and economic entities belonging to the Casino Group, as this term is defined in Article 1 of this Agreement.

 

(B)                              In order to ensure, for each of the Participating Companies, the optimal management of its cash shortfalls or surpluses, certain Participating Companies implemented prior to the signing date of this Agreement a system to centralise or pool their currency cash flows and entrusted the management thereof to Casino, Guichard-Perrachon, Casino Finance or Polca, as the case may be, as pool leader.

 

(C)                              Polca and the Participating Companies agreed moreover before today, by mutual agreement duly approved by their respective competent bodies, that this pooling system is significantly beneficial for each of them, in particular due to the flexibility of the system and the fact that the conditions determining the return on cash flows generated by the system are the market conditions for equivalent transactions.

 

(D)                              That being said, the Parties wish to determine their respective rights and obligations arising from the pooling system which forms the object of this Agreement.

 

(E)                               To facilitate the implementation and ensure the smooth functioning of the proposed cash pooling arrangement, Polca contacted Société Générale (hereinafter “the Bank”) for the purpose of managing the totality of cash flows generated by the pooling arrangement, an assignment which the Bank accepted at the terms set out in the Sogecash International Sweeping and Sogecash International Pooling Agreements, copies of which are appended hereto as Annexes 1 and 2.

 

(F)                                Moreover, Polca is entrusted with acting as the (i) central holder of cash flows effected by all Participating Companies and is (ii) responsible for the execution of orders relating to Investments, as defined below.

 

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NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

 

1.                                     Definitions

 

The following defined terms shall have the meanings set out below:

 

“Advance” shall have the meaning set out in Article 6.1.

 

“Advance Interest Rate” shall refer to the Reference Rate plus 50 annual basis points.

 

“Agreement” shall refer to the present agreement as well as its annexes and any subsequent addenda.

 

“Analytical Account(s)” shall have the meaning set out in Article 7.1.

 

“Business Day” shall refer to any day on which the real time gross settlement system in euro (TARGET2) operates.

 

“Calculation Agent” shall refer to Polca for the purposes of holding the Analytical Accounts of the Participating Companies, including the calculation of interest on Deposits and Advances.

 

“Cash Shortfall” shall refer, for a given Business Day, to an amount equal to any net debit balance of all Operating Accounts of the Participating Company denominated in Currency within the limit of the amounts debited that same Business Day by the Company concerned from its Secondary Account.

 

“Cash Surplus” shall refer, for a given Business Day, to an amount equal to any net credit balance of all Operating Accounts of the Participating Company denominated in Currency within the limit of the amounts credited to its Secondary Account.

 

“Casino Group” shall refer to Casino Guichard-Perrachon, a limited company with headquarters at 1 Esplanade de France, 48000 Saint-Etienne, France, and any legal person controlled directly or indirectly by Casino Guichard-Perrachon, where “control” shall refer to (a) companies affiliated with Casino Guichard- Perrachon, (b) companies that it controls, (c) companies that control Casino Guichard-Perrachon, and (d) any other company that to the knowledge of its management body is controlled by the companies referred to under (a), (b) and (c).

 

“Concentration Account” shall have the meaning set out in Article 2.3.

 

“ Currency” shall refer to either the Euro or the US Dollar, as the case may be.

 

“Deposit” shall have the meaning set out in Article 5.1.

 

“Deposit Interest Rate” shall refer to the Reference Rate plus 25 basis points annually.

 

“ EONIA ” shall refer to the rate calculated daily by the European Central Bank and published by the EBF (European Banking Federation) on Reuters’ “ EONIA “ web page or any other page or service capable of replacing Reuters for the purposes of publishing this rate.

 

“Euro ” shall refer to the money of Participating Countries within the meaning of Council Regulation (EC) No 1103/97.

 

“Fed Funds Rate” shall refer to the daily rate calculated by the Federal Reserve Bank and published on Bloomberg FEDL01 or any other web page or service capable of replacing

 

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Bloomberg for the purposes of publishing this rate, calculated over the precise number of days of the month and on the basis of a three-hundred-sixty (360) day year. This rate is rounded to two decimal places.

 

“Interest Cut-off Date” shall refer, at the latest, to the second (2nd) Business Day following the last Business Day of a calendar month, on which the Calculation Agent must determine, for purposes of the Agreement, the interest on the Deposit or Advance, as the case may be, as it appears from the Analytical Account of the Participating Company concerned, with retroactive effect on the value date of the last Business Day of this same calendar month.

 

“Interest Booking Date” shall refer, at the latest, to the second (2nd) or third (3rd) Business Day following the Interest Cut-off Date, with retroactive effect on the value date of the last Business Day of the preceding calendar month.

 

“Investments” shall have the meaning set out in Article 8.

 

“Operating Account(s)” shall have the meaning set out in Article 2.1(A).

 

“Participating Company” shall refer to any entity of the Casino Group which has acceded to this Agreement, either by signing the Agreement on the date hereof or by signing at a later date an act of accession which conforms to the model appended hereto as Annex 3.

 

“Participating Member State” shall refer to a Member State participating in the agreements of the European Economic and Monetary Union on the changeover to the Euro, in which at least one Participating Company has its registered office.

 

“Pooled Assets” shall have the meaning set out in Article 8.

 

“Reference Rate” shall refer to (i) T4M for amounts denominated in Euro and (ii) the Fed Funds Rate for amounts denominated in US Dollar.

 

“Secondary Account(s)” shall have the meaning set out in Article 2.2.

 

“T4M” shall refer to the Monthly Average Money Market Rate. It corresponds to the arithmetic mean of EONIA (“ Euro Overnight Index Average ”), calculated over the precise number of days of the month and on the basis of a three-hundred-sixty (360) day year. This rate is rounded to two decimal places.

 

“US Dollar” shall refer to the money which serves as legal tender on the territory of the United States of America.

 

2.                                     Opening cash flow and/or maintenance of supporting cash accounts

 

2.1                              Operating Accounts

 

(A)          For the purposes of this Agreement, each Participating Company undertakes, insofar as possible and for as long as it remains a Party to the Agreement, to ensure that:

 

·                                         except as provided in Article 2.1(B) below with respect to settlements between Participating Companies, all collection relating to its operating income and/or investment income as well as all outgoing payments (disbursements) relating to current operating expenditures are paid to or from (a) cash account(s) held with (a)

 

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credit institution(s) in the Participating Member State where its registered office is located (hereinafter the “Operating Accounts”);

 

·                                         no such incoming or outgoing payment is made to or from an account other than the Operating Accounts.

 

(B)                              With respect to outgoing payments to be made by a Participating Company for the purpose of settling debts it owes to another Participating Company, the Participating Company shall authorise Polca by means of delegation o debit its Analytical Account, as defined in Article 7.1 of this Agreement, in order to pay the creditor Participating Company the indicated amount due upon maturity.

 

Payment shall be made by means of a delegation by debiting the Analytical Account of the debtor Participating Company (the “ delegator “) with Polca (the “delegatee”) and crediting the Analytical Account of the creditor Participating Company (the “obligor”). It is understood that delegation entails novation and that the obligor hereby accepts in advance that such a delegation discharges the debtor (the “ delegator “) from its payment obligation but only to the extent of the amount actually debited from the Analytical Account of the debtor and credited to the Analytical Account of the creditor on the basis of the instructions given by the debtor by means of a request for settlement as referred to below. If the amount of the Deposit held in the Analytical Account of the debtor Participating Company is insufficient to make the corresponding entry to the Analytical Account of the creditor Participating Company, the entry shall be effected by means of an Advance at the conditions set out herein.

 

Prior to each payment by means of delegation, Polca shall receive from the debtor concerned a request for settlement stipulating payment of the debt to the creditor through delegation, it being understood that in case of disagreement between the debtor and the creditor on the amount of the debt, the latter shall settle the dispute between them; Polca’s liability being limited to the sole execution of the request for settlement it will have received.

 

(C)                               Insofar as possible, the Participating Company commits to Polca to carry out each Business Day a transfer of all net credit balances of its Operating Accounts denominated in Currency(-cies) to its Secondary Account or to the Concentration Account (as the case may be, as stated in Article 2.2 below) by debiting its Operating Accounts.

 

If, on a given Business Day, the net balance of its Operating Accounts is negative, the Participating Company shall cover the net debit balance by debiting its Secondary Account in order to credit the overdrawn Operating Account(s) by the amount of the Cash Shortfall at the conditions set out in Article 6.2.

 

2.2                              Secondary Accounts

 

2.2.1                     Unless the Participating Company and Polca agree otherwise and in accordance with Article 1.1(A) of the Sogecash International Pooling Agreement, each Participating Company:

 

·                  shall maintain for the duration of the Agreement a cash account in Currency (hereinafter the “Secondary Accounts”, referred to as the “Domestic Cash Accounts “ in the Sogecash International Pooling Agreement) with an agency of the Bank;

 

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·                  shall transfer each Business Day its Cash Surplus to the Secondary Account or debit the Secondary Account by its Cash Shortfall, as the case may be.

 

If the Participating Company does not have a Secondary Account, surplus cash flows shall be transferred directly from the Participating Company’s Operating Account(s) to the Concentration Account, and vice versa in the event Advances are extended by Polca.

 

2.2.2                     Each Participating Company shall fulfil the necessary formalities with the Bank or  the credit institutions concerned to allow Polca to consult at any time the balance of  its Secondary Account(s) or, if it has no such accounts, of its Operating Account(s).

 

2.3                              Concentration Account

 

For the purposes of this Agreement and in accordance with Article 1.1 (B) of the Sogecash International Pooling Agreement, Polca has opened and shall maintain a cash account with the Bank (hereinafter the “Concentration Account”, referred to as the “International Cash Concentration Account” in the Sogecash International Pooling Agreement), to (or from) which, in accordance with the provisions in particular of Article 4 of the Sogecash International Pooling Agreement, each Business Day, as the case may be:

 

(A)                               Cash Surpluses as well as revenue from Investments (income and capital) shall be credited, as appropriate, by:

 

i.                                the Bank by debiting the Secondary Accounts of the Participating Companies, or

 

ii.                             the Participating Companies themselves by debiting their Operating Accounts,

 

(B)                               Cash Shortfalls shall be debited, as appropriate, by

 

i.                                the Bank, for the benefit of the Secondary Accounts, or

 

ii.                             Polca, for the benefit of the Operating Accounts, along with the funds necessary for Investments made by it.

 

2.4                              Manual and/or automatic zero balancing of accounts

 

It is hereby stated that in accordance with the requirements of the Sogecash International Pooling Agreement, in particular Article 2 thereof, each Business Day, after execution by the Bank (i) of all cash flows initiated by the Participating Company from its Operating Accounts or by the Bank from the Secondary Accounts of Participating Companies or from  the Investments referred to in Article 8, the balance of each Secondary Account and of the Concentration Account shall be equal to zero for each concerned Business Day Despite the objective of maintaining a zero balance on the Concentration Account, Polca acknowledges that for any Business Day, a positive or negative residual balance may remain on the Concentration Account as well as on the Secondary Accounts.

 

3.                                     Confirmation of cash flows

 

3.1                              Each Participating Company, represented by the authorised person referred to in the act of accession conforming to the model appended as Annex 3 to the Agreement, shall provide Polca or any person designated by the latter each Business Day, no later than

 

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11.00 CET, with confirmation of the execution of all transfers of Cash Surpluses or Cash Shortfalls (a “Confirmation”) referred to in the preceding article.

 

For the purposes of this paragraph, the communication can be provided by telephone or in writing (fax, e-mail, or any other (written) means), provided, if communication occurs by phone, a written confirmation is transmitted to Polca before 11.00 CET on the Business Day concerned.

 

3.2                              If, on a given Business Day, there is a difference between the Participating Company’s Confirmation of a Cash Surplus or Cash Shortfall, as the case may be, on the one hand, and the actual Cash Surplus or Cash Shortfall, as appropriate, on the other hand, Polca may oblige the Participating Company to bear the costs it incurs as a result. The Participating Company concerned may request that Polca produce the necessary supporting documents.

 

4.                                     Projected cash flows

 

Notwithstanding the preceding provisions concerning Confirmations, each Participating Company, represented by the authorised person referred to herein or in the act of accession conforming to the model appended as Annex 3 to the Agreement, as appropriate, shall use it best efforts to provide Polca, or any person designated by the latter, with its projected four-week cash flow statements, each Monday or, if a given Monday is not a Business Day for the Participating Company, the next Business Day thereafter, before 15.00 CET.

 

5.                                     Deposits

 

5.1                              Amount of a Deposit

 

Each Cash Surplus transferred, as the case may be, directly from an Operating Account or a Secondary Account to the Concentration Account, shall give rise to a claim on the part of the relevant Participating Company against Polca, in an amount equal to the positive difference (if any) between the amount of the Cash Surplus and the amount of any outstanding Advance on that date (hereinafter the “Deposit”).

 

At any time, the Participating Company may (i) request the restitution in whole or in part of the Deposit to cover its Cash Shortfall as indicated in Article 5.2 or (ii) as provided for by Article 2.1 (B) to settle by means of delegation a debt to a creditor Participating Company of the Group.

 

The Deposit is booked as a claim recorded in the Analytical Account, as indicated in Article 7 below, on each Business Day. The Deposit may vary to take into account any restitutions that have been made, as indicated in this article, transfers between Participating Companies as provided by Article 2.1(B), a new Cash Surplus, or debit or credit interest.

 

If, on a given Business Day, the Participating Company has a Cash Shortfall, it shall inform Polca or any person designated by the latter, as provided by Article 3. In this case, Polca shall return the Deposit in whole or in part in order to cover the Cash Shortfall.

 

Restitution shall be made by debiting the Concentration Account and crediting the Secondary Account by the relevant amount or directly crediting the Operating Account, in

 

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the absence of a Secondary Account. The accrued interest on this amount shall be settled on the next Interest Booking Date.

 

If after such restitution there is a positive difference between the initial Deposit and the returned amounts, the amount of the Deposit shall be equal to this new balance.

 

5.2                              Restitution of a Deposit

 

It is understood that, except for the purposes of settlements between Participating Companies, as provided by Article 2.1(B), and/or cash flow hedges, the Participating Company shall endeavour insofar as possible not to request restitution of a Deposit.

 

5.3                              Return on a Deposit

 

Without prejudice to the provisions of Article 7.1, on each Interest Booking Date, as a return on the Deposit, the Calculation Agent, on behalf of Polca, shall record in the Participating Company’s Analytical Account the total interest calculated daily on the amount of the Deposit entered in the Analytical Account for each Business Day, based on the Deposit Interest Rate.

 

Interest shall accrue on a Deposit at the Deposit Interest Rate calculated per Business Day on the basis of a three-hundred-sixty (360) day year. Interest shall accrue daily as of the Business Day on which the Deposit is credited to the relevant Secondary Account.

 

Interest accrued daily on the Deposit, calculated on the sole basis of the Reference Rate, shall be credited to the Analytical Account of the Participating Company concerned on each Interest Booking Date.

 

5.4                              Tax consequences of a Deposit

 

A Participating Company with its registered office in Belgium shall be responsible for the tax consequences of the receipt of interest on Deposits entered in its Analytical Account.

 

Interest on Deposits recorded in the Analytical Account of a Participating Company with its registered office in a Participating Member State other than Belgium shall not be subject to any withholding tax.

 

6.                                     Advances

 

6.1                              Amount of an Advance

 

Any Cash Shortfall credited to a Secondary Account or Operating Account, as the case may be, by debiting the Concentration Account shall give rise to a debt on the part of the Participating Company to Polca, in an amount equal to the positive difference (if any) between the amount of Cash Shortfall and the amount of any outstanding Deposit on that date (hereinafter the “Advance”).

 

Without prejudice to compliance with the requirements imposed by Article 6.2 below, the Participating Company may, each Business Day, debit its Secondary Account (or its Operating Account, also referred to as the “zero balance account” in the Sogecash Intraday Sweeping Agreement, in the absence of a Secondary Account) by the amount of its Cash Shortfall. Polca shall then credit in Currency the Participating Company’s Secondary Account (or Operating Account, in the absence of a Secondary Account) by an equivalent amount, through debiting the Concentration Account.

 

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6.2                              Requirements for the extension of an Advance

 

(A)                               For the duration of the Agreement, an Advance may only be granted to a Participating Company provided it complies at all times, in particular on the Calculation Date prior to the Advance in question, with the Maximum Amount of Advances and no case of termination for default, as described in Article 11 hereof, has been found.

 

Upon accession by the Participating Company, and for each period of twelve (12) months during the term of the Agreement, based on the information provided by the Participating Company about its borrowings and equity, Polca shall determine a Maximum Amount of Advances for the Participating Company. Polca shall inform the Participating Company and the Calculation Agent of the Maximum Amount of Advances. These parties shall strive to ensure that the Advances never exceed the authorised Maximum Amount of Advances. If this threshold is nevertheless passed, the Participating Company shall take the necessary steps to reimburse the excess Maximum Amount of Advances no later than five Business Days after notification to this end by Polca.

 

The Parties agree that in any case Polca can only extend (an) Advance(s) to (a) Participating Company(-ies) provided it possesses sufficient liquidity.

 

(B)                               For the duration of the Agreement, the Participating Company undertakes to fulfil the following reporting obligations:

 

(1)                      to ensure that Polca receives its annual accounts as soon as possible and in any case no later than one hundred eighty (180) days after the close of the financial year;

 

(2)                      to immediately inform Polca of the occurrence of any material event likely to affect its ability to perform its obligations under the Agreement.

 

6.3                              Return on an Advance

 

Interest shall accrue on an Advance at the Advance Interest Rate, calculated per Business Day by the Calculation Agent on the basis of a three-hundred-sixty (360) day year. Interest shall accrue daily as of the Business Day on which the Advance was made available on the Secondary Account, or the Operating Account in the absence of a Secondary Account.

 

Without prejudice to the provisions of Article 7.1, the Calculation Agent shall enter in the Participating Company’s Analytical Account, on the Interest Booking Date, the amount of interest accrued daily.

 

6.4                              Tax consequences of an Advance

 

If a Participating Company has received an Advance, it shall be responsible for paying all taxes and making all remittances of any kind whatsoever, present or future, on the amounts due as an Advance under the Agreement.

 

If, however, a Participating Company is required by law to make deductions or withhold taxes from any amounts due Polca without being able to defray these deductions or withholdings, the Participating Company concerned shall gross up these amounts so that Polca receives, after and despite the deductions or withholdings, the entire sum to which it is entitled under the Agreement. The Participating Company is responsible for fulfilling all formalities and making all declarations in this regard so that Polca is not bothered or concerned by the matter.

 

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If it proves impossible to gross up the amounts due Polca by the Participating Company under the Agreement further to a deduction or withholding pursuant to the preceding paragraph, this shall constitute an event of termination within the meaning of Article 11.1(D)below.

 

6.5                              Repayment of an Advance

 

In the event Polca extends an Advance to a Participating Company, no repayment date shall be stipulated; however, the Participating Company must in any case reimburse the Advance at Polca’s first request within a maximum period of ten Business Days from the date thereof.

 

Any Cash Surplus transferred by a Participating Company to its Secondary Account (or to its Operating Account, in the absence of a Secondary Account) shall be allocated with priority by operation of law and with no formalities to the repayment in whole or in part of any Advance granted to the Participating Company which is outstanding on the transfer date.

 

7.                                     Analytical Account for each Group Company

 

7.1                              Keeping of Analytical Accounts

 

In order to allow a Participating Company to follow up, each Business Day, on its Advance or Deposit, as the case may be, taking into account cash flows occurring on the Business Day concerned, the Calculation Agent shall keep an analytical account (the “Analytical Account”). It shall calculate and record for each Business Day:

 

(A)           the Cash Surpluses or Cash Shortfalls; and

 

(B)           the amount of the Deposit or Advance.

 

Interest shall be recorded on the Analytical Account in accordance with the rules set out in Article 7.3.

 

Polca reserves the right to perform or have performed cash-flow regularisation operations with retroactive effect on the Analytical Accounts concerned during the current financial year.

 

7.2                              Analytical Account statements

 

For the purpose of settling interest on a Deposit or Advance, the Calculation Agent shall provide the Participating Company, on the Interest Booking Date, with a statement of its Analytical Account.

 

Moreover, the Calculation Agent agrees to provide such a statement at any time and as soon as possible during the term of the Agreement, upon receipt of a written request from the Participating Company or Polca.

 

Only the balance of the Deposit or Advance shall appear each Business Day in the Participating Company’s Analytical Account.

 

7.3                              Calculation and notification of interest

 

Interest shall be calculated daily by the Calculation Agent on the amount of the Deposit or Advance, as appropriate, appearing in the Analytical Account on that date. Under no

 

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circumstances shall the interest accrued on a Deposit or Advance be compounded within a given calendar month.

 

The Calculation Agent shall calculate, on each Interest Cut-off Date, the interest accrued daily during the calendar month preceding the Interest Cut-off Date  (i) on the Deposit (on the basis of the Deposit Interest Rate) or (ii) on the Advance (on the basis of the Advance Interest Rate), as the case may be.

 

On each Interest Booking Date, all daily interest since the last day of the preceding calendar month, both credited (paid on a Deposit) or debited (owed on an Advance), shall be totalled at the conditions set out in Articles 5.3 and 6.3. If for this period the total daily interest on the Deposit exceeds the daily interest on the Advance, the balance shall be credited to the Participating Company’s Analytical Account on the Interest Booking Date; on the other hand, if for this period the daily interest on the Advance exceeds the daily interest on the Deposit, the balance shall be recorded on the debit side of the Participating Company’s Analytical Account on the Interest Booking Date.

 

If, on a given Interest Booking Date, it appears that the Participating Company owes Polca interest on the Advance and, conversely, Polca owes interest on the Deposit, the Calculation Agent shall proceed to set off these amounts, with only the difference being due on the Interest Booking Date.

 

8.                                     Investment transactions

 

During the term of the Agreement, Polca shall in its own name (i) make any short-term investments in financial instruments and/or term deposits depending on the proceeds from the Pooled Assets and the total Cash Surpluses net of Cash Shortfalls (hereinafter the “Investments”) and (ii)  credit or debit the Concentration Account to this end.

 

For the entire duration of the Agreement, Polca irrevocably undertakes not to grant any pledge, encumbrance or other security right on any Investment credited to one or more securities accounts or term deposit accounts, in the case of monetary investments held by Polca with the Bank or other banking institutions.

 

For the present purposes, the total amount of Investments and total amount of Advances provided for by Article 8 shall be considered the Pooled Assets.

 

9.                                     Representations, warranties and undertakings of the Parties

 

In the same way that the Parties provide guarantees to the Bank in accordance with Article 9 of the Sogecash International Pooling Agreement, on the date on which a Party becomes a party to this Agreement and for as long as the Party in question remains a party hereto, that Party represents and warrants to the other Parties that:

 

·                                         it is duly constituted and conducts its activities in accordance with the laws, decrees, regulations, market practice and articles of association (or other constitutional documents) applicable to it;

 

·                                         it has full power and authority to decide to accede to the Agreement and the latter has been validly approved by its management bodies or any other competent body;

 

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·                                         the entering into and performance of the Agreement do not violate any provision of the laws, decrees, regulations, market practice or articles of association (or other constitutional documents) applicable to it or contract to which it is a party;

 

·                                         the signatories of the Agreement or the Act of Accession on its behalf are authorised to validly bind it under the Agreement;

 

·                                         any permits, licences and authorisations necessary to enter into and perform the Agreement have been obtained and are valid;

 

·                                         the Agreement set out herein is in accordance with its corporate purpose and corporate interest;

 

·                                         the Agreement set out herein creates rights and obligations which are fully binding on it;

 

·                                         it has not defaulted on or suspended payments and no insolvency proceedings or other winding-up or liquidation proceedings, or other legal proceedings or negotiations for the settlement of its liabilities, have been brought against it;

 

·                                         no legal or arbitral proceedings or administrative measures have been taken or commenced against it and in general its economic or financial situation is not liable to result in a clear and substantial deterioration in its activity, assets or financial situation and is not such as to affect the validity or proper performance of the Agreement.

 

9.1                              The Participating Company declares that it is in compliance on today’s date and undertakes to respect for the duration of the Agreement the accounting ratios described in  Article 6.2(A).

 

9.2                              Each Party undertakes:

 

·                                          in accordance with Article 5 of the Sogecash International Pooling Agreement, not to grant any security or guarantee whatsoever on its Operating Accounts, Secondary Account or the Concentration Account and to fulfil, if necessary, with the competent administrative and local authorities, the applicable information formalities, in particular those required by any rules governing foreign exchange control;

 

·                                          not to use under any circumstances the Advances in violation of the legislation transposing in the Participating Member State where the registered office(s) of the Party(-ies) concerned are located the principles governing the prohibition on financial assistance, referred to in Article 23 of Directive 2006/68/EC of the European Parliament and of the Council of 6 September 2006 amending Council Directive 77/91/EEC as regards the incorporation of public limited liability companies and the maintenance and alteration of their capital;

 

·                                          to comply with all obligations imposed on it by this Agreement; and

 

·                                          to ensure that all representations and warranties made by it under this Agreement remain valid and accurate.

 

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10.                              Early termination by Polca with respect to all Participating Companies

 

Without prejudice to the term of the Agreement indicted in Article 15, this Agreement shall be terminated by operation of law with respect to all Parties two Business Days after the sending of a notice to this effect by Polca to the Participating Companies and the accounts of all Parties shall be definitively closed out on this same date upon the occurrence of any of the following events:

 

(A)                               Polca determines, after consultation with all Participating Companies, that it is no longer possible to maintain a balance between their respective obligations or it concludes, for any reason whatsoever, that it is no longer able to fulfil its duties as cash manager of the Casino Group;

 

(B)                               the Sogecash International Pooling Agreement is terminated, or

 

(C)                               if due to the entry into force of any law or regulation or any other binding norm or changed interpretation thereof by an authority entrusted with their application, it proves impossible for the Parties to continue the present Agreement, in particular the interest paid on the Deposit of the Participating Companies no longer qualities for tax neutrality,

 

it being understood however that in the situation described under point (C) above the Parties shall first consult to try to reach a satisfactory solution for a period of one month following notification by Polca of occurrence of the event referred to in point (C).

 

11.                              Termination for default by one or more Participating Companies

 

Termination at Polca’s discretion

 

11.1                       Polca may deny a Participating Company the benefit of this Agreement without prior notice if any of the following events occurs:

 

(A)                               the Participating Company ceases its activity or, without prejudice to provisions of public policy to the contrary, is subject to receivership, voluntary or involuntary liquidation, or enters into a moratorium on payments, a settlement or agreement with creditors covering all or a significant portion of its debts or any similar proceedings applicable in the Participating Member State where its registered office is located;

 

(B)                               the Participating Company violates any of its obligations under this Agreement (in particular failure to meet a payment obligation on time or if a representation given pursuant to Article 9 proves to be inaccurate or ceases to be accurate) unless, for breaches that are capable of being remedied, the breach is cured within eight days from dispatch of a notice by Polca to this effect;

 

(C)                               the Secondary Account (or the Operating Account, in the absence of a Secondary Account) of the Participating Company forms the object of a preventive attachment, distraint, stop order or any other measure preventing the full use thereof or any similar measure applicable in the Participating Member State where its registered office is located, and the situation is not rectified within eight days from imposition of the measure in question;

 

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(D)                               a legal, financial or other change in the structure, status, activities or assets of the Participating Company occurs which is capable of substantially adversely affecting its ability to fulfil its obligations under this Agreement.

 

11.2                       Termination shall be effective upon receipt by the Participating Company of a written notice to this effect from Polca, and the accounts of the Participating Company concerned shall be definitively closed out on this same date.

 

11.3                       In the event of termination, the Participating Company shall pay back within two (2) Business Days from the effective date of its exclusion the amount of the Advance received as well as the accrued interest, as calculated by the Calculation Agent and indicated by Polca.

 

Conversely, the Participating Company’s Deposit, as well as the accrued interest on this amount calculated and notified by the Calculation Agent, must be returned and settled by Polca within the same period.

 

Automatic termination

 

11.4                       A Participating Company which ceases to belong to the Casino Group shall be automatically denied the benefit of the provisions of this Agreement by Polca, with no prior formal notice being necessary.

 

11.5                       In this case, the Agreement shall be terminated with immediate effect and the accounts of the Participating Company concerned shall be definitively closed out on this same date.

 

12.                              Liability

 

Each Participating Company acknowledges and agrees that Polca shall act as its proxy (mandataire) in performance of the assignments entrusted to Polca under the Agreement (with the exception of the transactions referred to in Article 8) and shall act in fact for and on behalf of the Participating Companies. Polca cannot be held liable to third parties other than for transactions entered into in its own name and on its own behalf.

 

Consequently, Polca shall bear no liability aside from that arising, if applicable, from Article 1991 et seq. of the Belgian Civil Code.

 

13.                              Bookkeeping

 

13.1                       Each of the Parties declares that it does not intend to create any financial solidarity with the other Parties to this Agreement. Each of the Parties acknowledges that the fact that it is a party to this Agreement does not affect its independence in terms of management and the pursuit of its corporate purpose, despite the existence of effective power to control of the Casino Group mentioned in the Preamble.

 

13.2                       Notwithstanding the provisions of this Agreement, in particular Article 7.1 on the keeping of Analytical Accounts, Polca and the Participating Companies expressly acknowledge that the Agreement and its annexes shall not cause, result in or authorise in any way whatsoever any type of accounts unicity between one or more Parties, which shall continue to keep their accounts individually (by maintaining distinct and legally separate accounts) in accordance with the applicable rules and shall make the appropriate accounting entries reflecting their own cash flows, in accordance with Article 5 of the Sogecash International Pooling Agreement.

 

14

 

13.3                       In particular, the pooling transactions that form the object of this Agreement and their booking by the Calculation Agent shall not release the Participating Company from its obligation to make accounting entries for its own cash flows.

 

13.4                       Polca and the Participating Company shall ensure respectively that, pursuant to Article 5 of the Sogecash International Pooling Agreement, the capital flows resulting from the Agreement are properly recorded in the specific account(s) so that they can be tracked separately at the Participating Company level.

 

13.5                       Polca undertakes, insofar as necessary, to take steps to ensure that the execution of the Agreement does not give rise to (or constitute any risk of) commingling of assets between one or more Parties.

 

14.                              Accession of new Casino Group companies

 

When a Casino Group entity is invited by Polca to participate in the transactions described herein, that entity can effectively participate in and become a party to the Agreement, as a Participating Company, by submitting to Polca an Act of Accession which conforms to the model appended hereto as Annex 3, validly completed, initialled and signed in duplicate. Polca shall return one copy duly initialled and signed by it.

 

The entity concerned shall immediately become a Party to the Agreement, as a “Participating Company’, as from the date on which it is deemed, under the Act of Accession referred to above, to have acceded to the Agreement.

 

By acceding to the present Agreement, the Participating Company authorises Polca to accept the accession to the Agreement of any subsidiary of the Casino Group which meets the conditions.

 

In accordance with Article 7(B) of the Sogecash International Pooling Agreement, upon effective accession to the Agreement, the new Participating Company and Polca can submit a joint request for accession to the Sogecash International Pooling Agreement, it being understood however that the Bank has discretion to accept or refuse any such request.

 

15.                              Discrepancies

 

In the event of discrepancies between the content of this Agreement and the Sogecash International Sweeping and Sogecash International Pooling Agreements referred to in the preamble, the terms of the latter agreements shall prevail.

 

16.                              Entry into force/Term of the Agreement

 

16.1                       The Agreement enters into force on [ ].

 

16.2                       The Agreement is entered into for a term of three (3) years, as of the date of its entry into force, and shall be implicitly renewed for successive three-year terms.

 

If a Party does not wish to renew the Agreement, it shall inform the other Parties of its decision by registered letter, with an acknowledgment of receipt, at least six months before the expiry date.

 

15

 

On this date, the accounts of the Party concerned shall be definitively closed out in the manner described in Article 11 so that no further amounts are due by Polca to the Party concerned and vice versa.

 

If a decision not to renew the Agreement is taken and notified by a Participating Company, such non-renewal shall not terminate the Agreement between Polca and the other Participating Companies.

 

If Polca decides not to renew the Agreement with respect to all Participating Companies, termination shall take effect upon expiry of the three-year term in progress.

 

On this date, the Parties shall definitively close out their accounts in the manner indicated in Article 11 so that no further amounts are due by one or more Parties to one or more other Parties as from this date under the Agreement.

 

17.                              Notices

 

All correspondence relating to the Agreement shall be sent to a Party by e-mail, fax or post.

 

For Polca: [indicate the address and contact person] (unless Polca subsequently indicates another address to the Parties).

 

For the Participating Companies: for the purposes of this Agreement, in particular Articles 3 and 4, only the person designated in the act of accession (Annex 3) or this person’s substitute shall have the capacity and authority to represent the Participating Company and only correspondence sent to the address indicated in the act of accession shall be considered valid (unless the Participating Company subsequently indicates another address to the Parties).

 

18.                              Miscellaneous

 

18.1                       Scope of the Agreement and termination of existing cash pooling arrangements

 

This Agreement contains the entire agreement between the Parties on the subject-matter to which it relates and overrides any prior agreement or undertaking between them, oral or in writing, pertaining to the same subject-matter.

 

Insofar as necessary, each of the Parties that is a party to a cash pooling agreement or other agreement related to the object of this Agreement agrees, on the one hand, to terminate these agreements and, on the other hand, to inform the other parties of the unilateral termination of such agreements. In both cases, termination shall be effective on the signing date of this Agreement.

 

18.2                       Default interest

 

Any amount due, as the case may be, by Polca or by a Participating Company to the Casino Group under the Agreement which is not paid on its due date shall bear interest at a rate equal to the Reference Rate plus one hundred  (100) annual basis points.

 

16

 

18.3                       Waiver and severability

 

In the absence of an express waiver in writing, failure by a Party to exercise all or some of the rights conferred on it under the Agreement or the late exercise of such rights shall not constitute a relinquishment of the unexercised rights.

 

If any provision of this Agreement is declared or found to be null and void and inapplicable, in whole or in part, for any reason whatsoever (to the extent this reason is compatible with the terms of the Agreement), the validity and enforceability of the other provisions of this Agreement or the remainder of the provision in question shall not be affected or undermined in any way whatsoever, provided that, having regard to the substance and purpose of this Agreement, these other provisions or the remainder of the provision in question are not inextricable from the provision or part thereof deemed invalid or unenforceable and therefore inseparable from the latter.

 

In the event of invalidity or unenforceability, the Parties shall negotiate in good faith with a view to agreeing on a valid and enforceable replacement provision which, insofar as possible, conforms to the substance and purpose of this Agreement and which comes as close as possible, in its legal and economic effects, to the invalid or enforceable provision or part thereof.

 

18.4                       Assignment

 

This Agreement, any transaction or any right or obligation arising herefrom for a Party may not be assigned or transferred, in whole or in part, without the prior written consent of each of the Parties.

 

18.5                       Waiver of immunity

 

This Agreement is commercial in nature. The Parties irrevocably waive any immunity from jurisdiction or execution from which they could benefit with respect to their present or future property.

 

18.6                       Confidentiality

 

Except to the extent permitted by the Agreement, each Party undertakes not to disclose to third parties the content of the Agreement for the duration of its term and for a period of 5 years after its expiry.

 

18.7                       Implementation and amendment

 

The implementation and application of the provisions of the Agreement may give rise to certain adjustments which, without calling into question the overall scheme of the Agreement, facilitate its practical implementation. In this case, these adjustments shall be set out in specific addenda to the Agreement, which must be signed by each Party and which may not modify or alter the financial rights and obligations of the Parties under the Agreement.

 

In general, the Agreement may only be amended by means of a written addendum signed by each Party.

 

18.8                       Language

 

The Parties agree that this Agreement is drawn up in French and English, it being understood that both of these versions constitute an original. However, in the event of a discrepancy between the French version and the English version, the French version shall prevail.

 

17

 

19.                              Governing law and jurisdiction

 

19.1                       This Agreement is governed by Belgian law and the provisions of public policy applicable in each Participating Member State.

 

19.2                       In the event of a dispute regarding in particular the validity, interpretation or performance of this Agreement, the Parties shall consult in order to try to find an amicable solution to the dispute, failing which their dispute shall be submitted to the exclusive jurisdiction of the Brussels courts.

 

Done in Brussels

On 1/07/2014

 

	
Guillaume Humbert
    	
 
    	
Intertrust, represented   by Irène
    
	
Director
    	
 
    	
Florescu
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
/s/ Guillaume Humbert
    	
 
    	
/s/ Irène Florescu
    
	
 
    	
 
    	
Intertrust (Belgium)   NV/SA
    
	
 
    	
 
    	
Director of the company
    
	
 
    	
 
    	
Represented by its   permanent
    
	
 
    	
 
    	
representative, Irène   Florescu
    

 

18

 

 

Annex 1

 

 

SOGECASH INTERNATIONAL POOLING

 

Service Agreement

Single Level — Multi-bank

Polca Holding — Société Générale

Currency EUR

 

 

The parties

 

Between the undersigned

 

1) Company

 

	
name
    	
:   POLCA HOLDING
    
	
legal form
    	
:   SA
    
	
capital
    	
:   568 645 820 EUR
    
	
head office
    	
:   Bruxelles - Place du Champ de Mars, 5
    
	
Commercial Register N°
    	
:   0883 312 286
    

 

	
Hereinafter   referred to as «THE INTERNATIONAL POOL LEADER»
    	
represented   by
    

 

	
Name first name
    	
:   MEYNIER NICOLAS & Intertrust représenté par Irène Florescu
    
	
Capacity
    	
:   Administrateur Délégué
    	
Administrateur
    
	
Address
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    
				

 

2.1) Company

 

	
name
    	
:   GELASE
    
	
legal form
    	
:   SA
    
	
capital
    	
:   519 711 343, 22 EUR
    
	
head office
    	
:   Bruxelles - Place du Champ de Mars, 5
    
	
Commercial Register N°
    	
:   0469 243 834
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   MEYNIER NICOLAS & Intertrust représenté par Irène Florescu
    
	
Capacity
    	
:   Administrateur Délégué 
    	
Administrateur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    
				

 

2.2) Company

 

	
name
    	
:   GEANT INTERNATIONAL
    
	
legal form
    	
:   BV
    
	
capital
    	
:   1100 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   332 740 33
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.3) Company

 

	
name
    	
:   GEANT HOLDING
    
	
legal form
    	
:   BV
    
	
capital
    	
:   780 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   30141434
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2

 

2.4) Company

 

	
name
    	
:   NARUSHKA HOLDING
    
	
legal form
    	
:   BV
    
	
capital
    	
:   118 727 407 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   30123512
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.5) Company

 

	
name
    	
:   GEANT FONCIERE
    
	
legal form
    	
:   BV
    
	
capital
    	
:   40 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   33273613
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    
	
 
    	
 
    
	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.6) Company

 

	
name
    	
:   BERGSAAR
    
	
legal form
    	
:   BV
    
	
capital
    	
:   40000
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   332 38740
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

3

 

2.7) Company

 

	
name
    	
:   COBOOP
    
	
legal form
    	
:   BV
    
	
capital
    	
:   20 000 EUR
    
	
head office
    	
:   15-Hertogenbosch
    
	
Commercial Register N°
    	
:   34125872
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.8) Company

 

	
name
    	
:   DTC FINANCE
    
	
legal form
    	
:   BV
    
	
capital
    	
:   18 700 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   17207935
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.9) Company

 

	
name
    	
:   TONQUIN
    
	
legal form
    	
:   BV
    
	
capital
    	
:   18 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   54166209
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

4

 

2.10) Company

 

	
name
    	
:   QUINAD
    
	
legal form
    	
:   BV
    
	
capital
    	
:   18 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   54166438
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.11) Company

 

	
name
    	
:   GEANT BOLIVAR
    
	
legal form
    	
:   BV
    
	
capital
    	
:   10 000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   57611424
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

2.12) Company

 

	
name
    	
:   GEANT INTERNATIONAL PARTICIPATIONS
    
	
legal form
    	
:   BV
    
	
capital
    	
:   5000 EUR
    
	
head office
    	
:   Eindhoven
    
	
Commercial Register N°
    	
:   57612218
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:   Hans Loevendie
    
	
Capacity
    	
:   Directeur
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
duly   authorised for such purpose
    

 

hereinafter referred to as «THE PARTICIPATING COMPANIES» as set forth in Appendix 1 of this Agreement.

 

3)     NAME OF SOCIETE GENERAL GROUP’S BANK

 

	
legal form
    	
:
    
	
capital
    	
:
    
	
registered office
    	
:
    
	
Commercial Register N°
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
represented   by
    

 

	
Name first name
    	
:
    
	
Capacity
    	
:
    
	
Address
    	
:
    
	
 
    	
 
    
	
 
    	
 
    	
dully   authorised for such purpose
    

 

hereinafter referred to as “THE CONTRACTING BANK”, acling as the bank of the international pool leader both in its own name and in the name of any other SOCIETE GENERALE GROUP’S BANK

 

5

 

It has been agreed as follows:

 

PREAMBLE

 

1).          The INTERNATIONAL POOL LEADER, and the PARTICIPATING COMPANIES have agreed to conclude, as the case may be, an Internal Cash Management Agreement.

 

2).               In order to implement this internal group cash management Agreement, the PARTICIPATING COMPANIES and the INTERNATIONAL POOL LEADER have decided to use the international cash management service of SOCIETE GENERALE Group: SOGECASH INTERNATIONAL Pooling.

 

This service optimises group international cash management by ensuring automatic cross-border cash centralisation between each PARTICIPATING COMPANY and the INTERNATIONAL POOL LEADER according to the procedures and under the conditions described hereinafter.

 

Where, in a given country, the group has decided to use the domestic cash management service of SOCIETE GENERALE GROUP, SOGECASH POOLING, in order to centralise in any PARTICIPATING COMPANY the cash of any local company participating in the said cash pooling, each of these domestic arrangements will be carried out subject to a particular service agreement. In such cases, the CONTRACTING BANK undertakes to ensure the co-ordination between domestic sweepings and cross-border sweepings calculated and posted in accordance with such service agreements.

 

3).          Prior to the implementation of the present Agreement, the INTERNATIONAL POOL LEADER shall supply the CONTRACTING BANK with legal opinions as to the legality of the transactions to be carried out under the national laws governing the companies party to this Service Agreement, in particular as regards the provisions of Article 9. These legal opinions shall be signed by the Legal Director of each company involved or by the Legal Director of the group, or if that is not possible, by an external legal counsel.

 

ARTICLE 1: Nature of the accounts included in the cash pooling

 

All the accounts included in the cash pooling are referred to in Appendix 1 of the present Service Agreement. They are all denominated in the same currency and maintained in the books of any banks of the international network of SOCIETE GENERALE GROUP (among which the CONTRACTING BANK) as mentioned in appendix 1.1 and 1.2 and hereinafter referred to as SOCIETE GENERALE GROUP’S BANK, and/or in the books of the branches of any third bank mentioned in appendix 1.3, hereinafter referred to as OTHER BANK.

 

Any new account shall require prior written agreement of the CONTRACTING BANK and the INTERNATIONAL POOL LEADER hereafter authorised for this purpose by the PARTICIPATING COMPANIES. This addition will take place as soon as the appropriate technical means have been put in place.

 

Any withdrawal of account shall be notified to the CONTRACTING BANK by the INTERNATIONAL POOL LEADER by registered letter. The withdrawal shall be effective within 3 business days after receipt of the said registered mail. On such third business day, a final sweep to or from such account shall be effected.

 

1.1 Accounts held in a SOCIETE GENERALE GROUP’S BANK

 

A) Each PARTICIPATING COMPANY shall:

 

·  maintain in the books of each relevant SOCIETE GENERALE GROUP’S BANK one or several account(s) called «domestic cash account(s)».

 

·  request each relevant SOCIETE GENERALE GROUP’S BANK, where the indirect sweep option in Appendix 1 has been selected and subject to applicable domestic legal provisions, to open a « sweep account » in order to record sweeps as provided for in article 2.

 

·  agree with each relevant SOCIETE GENERALE GROUP’S BANK, subject to domestic legal provisions, to enter in a single current account, the transactions which both parties may carry out together, whatever the settlement date of such transactions may be.

 

6

 

In each country where these operations are posted in separate accounts in the different local entities of the SOCIETE GENERALE GROUP’S BANK, these accounts shall be considered as part of a single current account, provided that the concept of single current account is recognised by the domestic law. All operations which are or which will be recorded in the single current account shall be transformed into simple debit or credit items which make up the current provisional balance, it being understood that forward transactions shall not form part of the available provisional balance until their settlement. The closing of the account will produce a balance which will become final and payable only after the settlement of current transactions. Each PARTICIPATING COMPANY acknowledges that the single current account shall not include any account which cannot be so incorporated either because of the nature of the account or because the regulations governing such accounts do not allow such inclusion, nor any account which the SOCIETE GENERALE GROUP’S BANK and each PARTICIPATING COMPANY may agree to exclude from the single current account.

 

Where a party withdraws from this Service Agreement, any single account undertaking which may arise from such Service Agreement shall remain in force until the closing of the provisional balance of the statement of the single current account referred to above.

 

·  waive, as a party to this Agreement, any current account or similar overdraft facility which may have been previously granted to it by each SOCIETE GENERALE GROUP’S BANK insofar as such facilities are customarily granted in the country of the PARTICIPATING COMPANY. This type of facility will henceforth be provided by the INTERNATIONAL POOL LEADER instead of the SOCIETE GENERALE GROUP’S BANK for each PARTICIPATING COMPANY up to the ceiling for current cash requirements agreed between the CONTRACTING BANK and the INTERNATIONAL POOL LEADER for the purposes of this service.

 

·  acknowledge that any debit position which may arise in its current account does not constitute an overdraft facility granted for an indefinite period by the SOCIETE GENERALE GROUP’S BANK, but is the result of the bookkeeping system put into operation under this Service Agreement.

 

B) The INTERNATIONAL POOL LEADER shall:

 

·   maintain, as the case may be, as PARTICIPATING COMPANY, accounts as described in paragraph A) above.

·  open an account called «international cash concentration account» which will operate under the conditions set forth in article 2 hereunder and on which sweeps of the PARTICIPATING COMPANIES and the cash transactions which it carries out on behalf of the Group will be posted.

·  agree with the relevant SOCIETE GENERALE GROUP’S BANK that all the accounts, opened on its name and as a INTERNATIONAL POOL LEADER are part of a single current account as described on A, provided that such a notion of single current account is applied locally. This single current account is different from any single current account opened on its name and as a PARTICIPATING COMPANY

 

C) It is understood that the accounts of separate legal entities shall not be linked into a single current account arrangement.

 

1.2 Accounts held in OTHER BANKS

 

Each PARTICIPATING COMPANY as per Appendix 1 shall maintain, as the case may be, one or several account(s) said “domestic cash account(s)” held in the books of any OTHER BANKS.

 

ARTICLE 2: Automatic sweep transfers

 

A) Principle of sweeps

 

The CONTRACTING BANK shall carry out sweep transfers between each PARTICIPATING COMPANY and the INTERNATIONAL POOL LEADER at the frequency mentioned in Appendix 1.

 

In accordance with the localization of the «international cash concentration account» and each of the swept accounts, the sweep transfers will be cross-border or domestic. In this latter case, it will be either domestic sweeps within a same SOCIETE GENERALE GROUP’S BANK and/or domestic sweeps between two different SOCIETE GENERALE GROUP’S BANK.

 

7

 

In accordance with the sweep options selected in Appendix 1, the sweep transfers are calculated separately on the basis of movements posted on the different accounts opened by each PARTICIPATING COMPANY held in the same country with the different branches of each relevant SOCIETE GENERALE GROUP’S BANK on one hand, and on the accounts held in the books of each OTHER BANK, on the other hand.

 

Each PARTICIPATING COMPANY authorizes the CONTRACTING BANK to sweep each account included in the present Service Agreement, whether the accounts are held in the books of the CONTRACTING BANK or held in the books of any SOCIETE GENERALE GROUP’S BANK, or in any OTHER BANK included in the service.

 

Each PARTICIPATING COMPANY declares having supplied to each SOCIETE GENERALE GROUP’S BANK and to each OTHER BANK involved the necessary instructions in order to:

 

· provide to the CONTRACTING BANK before D+1 at 01.00 CET electronic account statements of transactions of each accounting D day;

· process as soon as received the sweep transfers orders initiated in the frame of this agreement.

 

B)  Sweeping of accounts held in the books of SOCIETE GENERALE GROUP’S BANK

 

B.1 The sweep transfers can be directly and/or indirectly processed

 

B.1.1 In case of direct sweeping:

 

Every business day, the CONTRACTING BANK shall, on the basis of the entries registered on the previous business day, calculate the aggregated amount of entries booked in each of the accounts of the PARTICIPATING COMPANY as mentioned in paragraph A hereabove, and bearing the same value date. The sweep transfers shall be posted directly in each of the accounts of each PARTICIPATING COMPANY, as detailed in Appendix 1.

 

B.1.2 In case of indirect sweeping:

 

Every business day, the CONTRACTING BANK shall, on the basis of the entries registered on the previous business day, calculate the aggregated amount of entries booked in all the different accounts of each PARTICIPATING COMPANY mentioned in paragraph A hereabove, held in a same bank in a same country, and bearing the same value date.

 

The sweep transfers shall be executed through mirror accounts, so called “the sweep accounts”, as detailed in Appendix 1.

 

B.2 Value dates

 

B.2.1 In case of daily sweeping:

 

B.2.1.1 Cross-border sweep transfers and Domestic sweep transfers between two different SOCIETE GENERALE GROUP’S BANK

 

Each cross-border sweep transfer, whether direct or indirect, is attributed with the value date of the entries of which it is composed, unless the value date is earlier than D-1 business day. In which case the Bank shall substitute in place of such value date the value date D-1.

 

In the countries where value dates are not used, they shall be replaced by the booking date for calculation needs.

 

B.2.1.2 Domestic sweep transfers within a same SOCIETE GENERALE GROUP’S BANK

 

Each sweep transfer, whether direct or indirect, shall be applied with the value date of the entries of which it is composed.

 

B.2.2 In case of periodic sweeping:

 

In case of sweeping periodicity other than daily, all the aggregates calculated since the last sweeping and with a value date prior or equal to the reference date selected in Appendix 1.1, are added up and swept with a single value date equal to the selected date.

 

C)  Sweeping of accounts held in OTHER BANKS

 

C.1 The sweep transfers are processed in a direct mode.

 

8

 

C.2 Calculation of the sweep transfers

 

At the end of each sweeping day, and on the basis of the electronic account statement received from the OTHER BANK, the CONTRACTING BANK calculates the available balance composed of the entries with a value date prior or equal to D4-1.The unavailable balance is swept upon maturity.

 

C.3 Value date

 

The available balance calculated on each account is swept on D+1 business day with a D+1 business value date.

 

ARTICLE 3: Incidents or events which may affect sweeps

 

A)  Where an account is the object of an attachment order, stop order (« opposition sur compte ») or any similar proceedings and/or insolvency proceedings of one of the companies, the sweep shall not be carried out.

 

B)  In the case of technical failures, the CONTRACTING BANK shall make its best efforts to carry out the sweeps. Where this is impossible, sweeps will be carried forward to the next business day according to the conditions provided.

 

C)  Where the overdraft facility granted to the INTERNATIONAL POOL LEADER as agreed by the parties when this Service Agreement was signed, or as subsequently modified by mutual agreement, is exceeded, the sweeps shall not be carried out.

 

D)  If the INTERNATIONAL POOL LEADER is the object of insolvency proceedings, the commitments taken by the CONTRACTING BANK with THE PARTICIPATING COMPANIES shall be terminated at the date of the decision or court order initiating the insolvency proceedings.

 

In all cases, the CONTRACTING BANK shall immediately inform the INTERNATIONAL POOL LEADER of the non-performance of the sweep(s) by sending an Email to the address referred to in Appendix 1.

 

ARTICLE 4: Mutual undertakings of the BANK and the INTERNATIONAL POOL LEADER

 

To ensure receipt by the INTERNATIONAL POOL LEADER of excess cash of each of the PARTICIPATING COMPANIES, the CONTRACTING BANK shall be deemed debtor towards the INTERNATIONAL POOL LEADER for any successive credit balances, appearing at any time in the current accounts opened in its books in the name of each of the PARTICIPATING COMPANIES.

 

The INTERNATIONAL POOL LEADER shall conversely be deemed debtor towards the CONTRACTING BANK for any successive debit balances, appearing at any time in the current accounts opened in the books of the CONTRACTING BANK in the name of each PARTICIPATING COMPANY.

 

As a result of these mutual undertakings:

 

·   the CONTRACTING BANK and the INTERNATIONAL POOL LEADER may, at any time, be creditor or debtor, one towards the other;

 

·  as regards the PARTICIPATING COMPANIES, the CONTRACTING BANK may, at any time, be creditor for the sums owed to the INTERNATIONAL POOL LEADER, or debtor for the sums which shall be due to it by the INTERNATIONAL POOL LEADER.

 

These lending/borrowing positions between the CONTRACTING BANK and the INTERNATIONAL POOL LEADER on the one hand, and between the CONTRACTING BANK and the PARTICIPATING COMPANIES on the other hand, shall be included in their respective current accounts as soon as they arise and not from the moment they are booked.

 

Where the INTERNATIONAL POOL LEADER is the object of insolvency proceedings, the undertakings by the CONTRACTING BANK towards the PARTICIPATING COMPANIES shall be terminated from the date of the insolvency judgment.

 

9

 

ARTICLE 5: Obligations of the COMPANIES

 

To ensure compliance with company law, tax law and insolvency law, the INTERNATIONAL POOL LEADER and the PARTICIPATING COMPANIES hereby declare that they have taken the following measures:

 

·  the INTERNATIONAL POOL LEADER and each PARTICIPATING COMPANY shall enter in their books all intra-group treasury operations carried out;

 

·  in accordance with the provisions of the Internal Group Cash Management Agreement referred to in the preamble of this Service Agreement, the INTERNATIONAL POOL LEADER shall pay or charge each PARTICIPATING COMPANY on its net cash balances;

 

·  the interest rates applicable to these cash transactions shall be comparable to the market rates.

 

Moreover, the INTERNATIONAL POOL LEADER, and the PARTICIPATING COMPANIES shall not create or permit to subsist any charge, pledge, lien or other security interest or any other arrangement or agreement having a similar effect over any of its accounts included in the present agreement.

 

ARTICLE 6: ADDITIONAL SERVICES

 

Under the options set forth in Appendix 2, the CONTRACTING BANK shall provide with the following statements and services:

 

·             Electronic account statements

·             Periodic statements of cumulative sweeps

·             Intra-group interest calculation, posting and reporting

·             Preparatory statement for the Central Bank reporting

·             Daily intra-group loan position

 

The description and conditions of each additional service are mentioned in Appendix 2.

 

The elements provided by the CONTRACTING BANK in the additional services are for information purposes only and do not replace any external or internal accounting policies or procedures that must or should be followed by the COMPANIES. Any demand for changes by the COMPANIES shall be made by the means of registered letter with recorded delivery. The changes will enter into effect when the appropriate technical means have been put in place, if possible, by the CONTRACTING BANK.

 

ARTICLE 7: Withdrawal or accession of companies

 

A)                     Withdrawal of a PARTICIPATING COMPANY

 

Where, for whatever reason, a PARTICIPATING COMPANY ceases to be a party to the internal group cash management Agreement referred to in the preamble, or ceases to be a party to the present service agreement, such COMPANY and/or the INTERNATIONAL POOL LEADER undertake(s) to promptly notify by registered letter with recorded delivery the CONTRACTING BANK which will exclude the accounts concerned from the present Service Agreement. The INTERNATIONAL POOL LEADER and the PARTICIPATING COMPANY shall be responsible for settling any indebtedness between them on the day of the withdrawal, the CONTRACTING BANK shall have no liability whatsoever as regards such indebtedness. The exclusion will take effect 3 business days after receipt of the registered letter by the CONTRACTING BANK.

 

On such third business day, each domestic cash account of the relevant PARTICIPATING COMPANY will be swept by a final sweep in the frame of the last sweeping day, whether the relevant account is held in the books of a SOCIETE GENERALE GROUP’S BANK, or in the books of an OTHER BANK.

 

THE INTERNATIONAL POOL LEADER is committed to bear the last sweep effected in its account.

 

The CONTRACTING BANK shall be held harmless and not liable for any consequences which may result from the late communication of information to its relevant department.

 

The withdrawal of a PARTICIPATING COMPANY shall not de facto entail the termination of this Service Agreement.

 

 

10

 

B)                     Accession of a PARTICIPATING COMPANY

 

Where a new company accedes to the internal group cash management Agreement referred to in the preamble, such company and the INTERNATIONAL POOL LEADER, which is hereby duly authorised for this purpose by the companies party to this Service Agreement, may jointly request its accession to this service by sending a registered letter addressed to the CONTRACTING BANK.

 

Subject to a favourable reply by the CONTRACTING BANK, the accession will take effect from the date when the appropriate technical means have been put in place.

 

C) Change of the INTERNATIONAL POOL LEADER

 

Where the INTERNATIONAL POOL LEADER must change due to the modification of the group organization, such present agreement will be amended referred to herein in the article 14.

 

ARTICLE 8: PRICE OF THE SERVICE

 

The price of the service is detailed in Appendix 3 of this present agreement.

 

The price shall include:

 

· an all-in implementation fee for the creation of the service,

· a fixed commission for each addition or withdrawal of accounts;

· a monthly operating fee, on a flat basis or proportional to the number of swept accounts;

· where necessary:

·             a subscription for electronic account statement(s) including sweeps,

·             a monthly commission for each of the statements or services requested:

· periodic statements of cumulative sweeps

· Infra-group interest calculation, posting and reporting

· Preparatory statement for Central Bank reporting

· Daily intra-group loan

 

The total invoice shall be charged to the account(s) held in the books of SOCIETE GENERALE GROUP’S BANK indicated in Appendix. The monthly operating commission can be invoiced to each PARTICIPATING COMPANY.

 

The CONTRACTING BANK reserves the right to revise its prices. New prices will come into effect three months after notice to the INTERNATIONAL POOL LEADER. Where the INTERNATIONAL POOL LEADER fails to object within two months after notification, the INTERNATIONAL POOL LEADER shall be deemed to have approved the price revision.

 

ARTICLE 9: Declarations

 

Each of the companies party to this Agreement declares as regards the domestic law applicable to it:

 

a)             that it is part of a group of companies organised in such a manner that it may carry out treasury operations with other companies;

b)             that it has been duly incorporated and has full power and authority to enter into, observe and perform its obligations under this Service Agreement and the internal group cash management Agreement;

c)              that the execution and performance of this present Agreement and the internal group cash management Agreement have been duly authorised by its company organs and that it has obtained all necessary and duly registered authorizations from all relevant authorities and more generally that the terms of the internal group cash management Agreement are not contrary to public policy;

d)             that the execution and performance of this Service Agreement and the internal group cash management Agreement do not contravene its company memorandum and articles of association, nor any undertaking by which it may be bound, and do not violate any applicable laws and regulations, in particular any banking and fiscal rules and regulations;

e)              that this Service Agreement and the internal group cash management Agreement are and shall remain valid undertakings enforceable in accordance with their terms.

 

11

 

Each PARTICIPATING COMPANY and the INTERNATIONAL POOL LEADER undertake to promptly notify the CONTRACTING BANK of all event which may affect the exactness of or change these declarations on this present article.

 

ARTICLE 10: Liability of the CONTRACTING BANK

 

The CONTRACTING BANK shall set up and put in place the appropriate technical means to perform the services provided for in this Agreement and is authorised to use sub-contractors for this purpose, the CONTRACTING BANK being held liable for the due performance of the services undertaken by such sub-contractors.

 

It shall not be held liable for non-performance of its obligations resulting from:

 

·                  the absence of daily supply, unworkable or incomplete supply of the necessary information by any OTHER BANK, for calculating the sweeps of the accounts held in their books;

·                  the non performance by any OTHER BANK of sweeps forwarded by the CONTRACTING BANK,

·                  any event of force majeure.

 

ARTICLE 11: Confidentiality

 

The CONTRACTING BANK undertakes to keep confidential any information which is entrusted to it by the companies party to this Service Agreement and also any transaction carried out on their behalf. However, the companies party hereto authorise the CONTRACTING BANK:

 

·  to disclose to companies of its group or to sub-contractors or to external companies any useful information for the performance of the services provided for in this Service Agreement and necessary for good management. In such case, these companies, sub-contractors and external companies, will be bound by contract to the CONTRACTING BANK to keep confidential the said information, in the same manner as the CONTRACTING BANK itself is submitted to the same obligation.

 

·  to name them, as users of the Sogecash International Pooling service, in the BANK’s commercial documentation

 

ARTICLE 12: Attachment order, stop order (« opposition sur compte »), or similar proceedings

 

Where the accounts are held in the books of a SOCIETE GENERALE GROUP’S BANK, whereas:

 

·                  one of the PARTICIPATING COMPANIES is subject to attachment order, stop order or similar proceedings, the relevant SOCIETE GENERALE GROUP’S BANK shall inform the creditor initiating the proceedings or its agent of the existence of this Service Agreement and give the name and the registered address of the INTERNATIONAL POOL LEADER.

 

·                  the INTERNATIONAL POOL LEADER is subject to attachment order, stop order or similar proceedings, the relevant SOCIETE GENERALE GROUP’S BANK shall inform the creditor initiating such proceedings or its agent of the attachable balance which is shown in the books in application of this Service Agreement.

 

In both cases, the relevant SOCIETE GENERALE GROUP’S BANK is authorised to disclose to the creditor initiating the proceedings or to its agent the present Service Agreement.

 

ARTICLE 13: Duration of the Agreement

 

A) This Agreement has been made for an indefinite period. The CONTRACTING BANK or the INTERNATIONAL POOL LEADER may, without giving grounds, terminate this Agreement at any moment by sending a registered letter with recorded delivery either to the registered address of the INTERNATIONAL POOL LEADER or to the branch of the CONTRACTING BANK which holds the account of the INTERNATIONAL POOL LEADER. The termination shall come into effect thirty days from the date of the first presentation of the registered letter.

 

12

 

B)                     In addition, the CONTRACTING BANK may, as it deems fit, exclude from this Service Agreement any signatory COMPANY:

 

·                  a declaration made by such signatory COMPANY under this Service Agreement is proved to be false;

·                  in the case of payment default by such COMPANY party to this Service Agreement;

·                  in the case of attachment, stop order (« opposition sur sample ») or similar proceedings against account(s) held by the SOCIETE GENERALE GROUP’S BANK opened in the name of such company party hereto and for which the release or the deposit of the amount has not been obtained within 30 (thirty) calendar days from notification;

·                  in the case of merger, sale, partial business transfer, termination of business or suspension of payment by such company except in cases of merger, sale or partial business sale which may take place between the companies party to this Service Agreement;

·                  in the event any step is taken with a view to its liquidation, winding-up, or dissolution;

·                  in the case where such COMPANY party hereto fails to supply the CONTRACTING BANK with certified copies of the annual balance sheet, income statement and any notes required by the law and accompanied by the auditors’ reports. Such documents to be supplied as soon as established and not later than six months of closing the accounts of each financial year; except extension or court order;

·                  where such PARTICIPATING COMPANY exceeds the borrowing limit with the INTERNATIONAL POOL LEADER which was communicated to the CONTRACTING BANK as agreed by the parties when this Service Agreement was signed or subsequently modified by the INTERNATIONAL POOL LEADER in Agreement with the CONTRACTING BANK;

·                  in the case of breach by such COMPANY party hereto of any clause of this Service Agreement,

·                  in the case of reprehensible conduct or an irretrievable situation of such company party hereto

 

The exclusion of a PARTICIPATING COMPANY shall not entail de facto the termination of this Agreement. Where the exclusion concerns the INTERNATIONAL POOL LEADER, the Agreement shall be automatically terminated.

 

Notification of exclusion or termination shall be made to the relevant company(ies) and to the INTERNATIONAL POOL LEADER by registered letter with recorded delivery.

 

C)  In all the cases provided for in paragraph B) of this Article, termination or exclusion shall come into effect three business days after receipt of the registered letter. The INTERNATIONAL POOL LEADER is committed to support financially the final sweep related to the last sweeping day, whether the accounts are held in the books of a SOCIETE GENERALE GROUP’S BANK or in any OTHER BANK. The INTERNATIONAL POOL LEADER and the PARTICIPATING COMPANY shall be responsible for settling any indebtedness between such leader and such company on the day of withdrawal. The CONTRACTING BANK shall have no liability whatsoever in this respect.

 

D)  Finally, the accounts held in the books of a SOCIETE GENERALE GROUP’S BANK or any OTHER BANK will cease to be swept by the CONTRACTING BANK if:

 

·              SOCIETE GENERALE GROUP’S BANK is not part of SG GROUP any more, except if such bank agrees to continue the present service. In such case the sweeps will be carried out to the same conditions provided for any OTHER BANK,

 

·              relevant SOCIETE GENERALE GROUP’S BANK or OTHER BANK should have no more convenience to hold this sweeping service.

 

The notification of the exclusion or termination shall be effective to the PARTICIPATING COMPANY(IES) or the INTERNATIONAL POOL LEADER by registered letter with recorded delivery. The INTERNATIONAL POOL LEADER in such case is committed to support financially the final sweep related to the last sweeping day, whether the accounts are held in the books of a SOCIETE GENERALE GROUP’S BANK or in any OTHER BANK.

 

After this period, all the accounts of the PARTICIPATING COMPANY(IES) and the INTERNATIONAL POOL LEADER shall be zero-balanced.

 

13

 

ARTICLE 14: Amendment of the organisation and of the terms and conditions of the service

 

The PARTICIPATING COMPANIES party hereto give a mandate to the INTERNATIONAL POOL LEADER to sign on their behalf any amendment with the CONTRACTING BANK in order to adapt the service as described herein to further changes in the organisation of the cash concentration structure (change of INTERNATIONAL POOL LEADER, participating companies, additional statements and/or services, the modes of transmission of the statements and electronic account statements, sweeping modes).

 

In case of change of the INTERNATIONAL POOL LEADER, following a modification of the internal group cash management Agreement, the existing INTERNATIONAL POOL LEADER (called the outgoing INTERNATIONAL POOL LEADER) will inform the CONTRACTING BANK and they will decide together of the effective date of change of the INTERNATIONAL POOL LEADER. This modification will be notified as an amendment to the present Agreement which will be signed by the outgoing INTERNATIONAL POOL LEADER, the new INTERNATIONAL POOL LEADER and the CONTRACTING BANK subject to the agreement of this latter.

 

The INTERNATIONAL POOL LEADER will inform each PARTICIPATING COMPANY in writing prior to any amendment involving the said Service Agreement and will provide the CONTRACTING BANK with a copy of the notification sent to the company together with the relevant request.

 

ARTICLE 15: Applicable law and jurisdiction

 

This Agreement shall be governed by French law. The courts of Paris shall have sole jurisdiction in any dispute, claim or difficulty which may arise between the parties relating to the construction and performance of this Service Agreement.

 

	
 
    	
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14

 

	
MADE at
    	
 
    	
Bruxells
    	
 
    	
,on 15/11/13 in 2 copies
    

 

	
PARTIES (company names)
    	
SIGNATURES and SEALS
    

 

The COMPANIES:

 

	
1
    	
 
    	
POLCA HOLDING
    
	
 
    	
 
    	
 
    
	
2
    	
 
    	
GELASE
    
	
 
    	
 
    	
 
    
	
3
    	
 
    	
GEANT INTERNATIONAL
    
	
 
    	
 
    	
 
    
	
4
    	
 
    	
GEANT HOLDING
    
	
 
    	
 
    	
 
    
	
5
    	
 
    	
MARUSHKA HOLDING
    
	
 
    	
 
    	
 
    
	
6
    	
 
    	
GEANT FONCIERE
    
	
 
    	
 
    	
 
    
	
7
    	
 
    	
BERGSAAR
    
	
 
    	
 
    	
 
    
	
8
    	
 
    	
COBOOP
    
	
 
    	
 
    	
 
    
	
9
    	
 
    	
TONQUIN
    
	
 
    	
 
    	
 
    
	
10
    	
 
    	
QUINAH
    
	
 
    	
 
    	
 
    
	
11
    	
 
    	
GEANT BOLIVAR
    
	
 
    	
 
    	
 
    
	
12
    	
 
    	
GEANT INTERNATIONAL PARTICIPATION
    

 

The BANK:

Branch of:

Address:

 

15

 

	
MADE  at
    	
 
    	
Bruxelles
    	
 
    	
,on In copies.
    

 

	
PARTIES (company names)
    	
SIGNATURES and SEALS
    

 

The COMPANIES:

 

	
13
    	
 
    	
DTC Finance BV
    
	
 
    	
 
    	
 
    
	
2
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
3
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
4
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
5
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
7
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
8
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
9
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
10
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
11
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
12
    	
 
    	
 
    

 

The BANK:

Branch of:

Address:

 

16

 

SERVICE AGREEMENT

 

INTERNATIONAL GROUP CASH CONCENTRATION

 

Glossary

 

·                  INTERNATIONAL POOL LEADER

 

A group company in charge of the management of the corporate group’s net cash balances pursuant to this service.

 

·                  INTERNATIONAL CASH CONCENTRATION ACCOUNT

 

Account specially opened in the name of the INTERNATIONAL POOL LEADER to centralise cash balances from each of the PARTICIPATING COMPANIES by means of cross-border sweeps.

 

·                  PARTICIPATING COMPANY

 

A group company whose individual cash balance is directly concentrated on the INTERNATIONAL POOL LEADER by means of cross-border sweeps.

 

·                  DOMESTIC CASH ACCOUNT

 

Any account in which the PARTICIPATING COMPANY holds the domestic cash balance to be transferred to the International Pool Leader by means of sweeps carried out by the CONTRACTING BANK.

 

·                  SWEEP ACCOUNT

 

Or mirror account, used whenever the indirect sweeping method is selected, and opened in the name of the PARTICIPATING COMPANY, to book the domestic cash balance to be transferred to the International Pool Leader by means of sweeps carried out by the CONTRACTING BANK.

 

·                  SOCIETE GENERALE GROUP’S BANK

 

Bank, subsidiary of SOCIETE GENERALE GROUP, holding in its books one or several accounts of one or several PARTICIPATING COMPANY(IES) party hereto to this service agreement

 

·                  CONTRACTING BANK

 

SOCIETE GENERALE GROUP’S BANK, holding in its books the cash concentration account of the INTERNATIONAL POOL LEADER and signatory to the service agreement SOGECASH INTERNATIONAL POOLING

 

·                  OTHER BANK

 

Any bank which does not belong to SOCIETE GENERALE GROUP and holds one or several accounts of one or several PARTICIPATING COMPANIES party hereto to this agreement

 

·                  DOMESTIC SWEEP within a same SOCIETE GENERALE GROUP’S BANK

 

Sweep transfer carried out between two accounts held in the same country in the books of a same SOCIETE GENERALE GROUP’S BANK

 

·                  DOMESTIC SWEEP between two different SOCIETE GENERALE GROUP’S BANK

 

Sweep transfer carried out between two accounts held in the same country in the books of two different SOCIETE GENERALE GROUP’S BANK

 

·                  CROSS-BORDER SWEEP

 

Sweep transfer carried out between two accounts held in different countries

 

	
 
    	
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17

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION
 Appendix 1

 

Sweeping terms and conditions

 

A) Depending on the frequency selected in this appendix 1 (appendix 1.1 et seq.) the automatic sweep transfers are booked per value date

 

·                  to the domestic cash accounts in the case of “direct sweeps”, or to the “sweep account” in the case of “indirect sweeps” on the one hand,

 

·                  and, to the “international cash concentration account” on the other hand.

 

Sweeps shall be automatic and their unit amount shall be determined on the basis of the aggregates calculated as stipulated under article 2. They shall be denominated in the currencies of the domestic cash accounts.

 

The sweep frequency options are as follows:

·        daily: sweeps are made on each business day,

·        weekly: the sweeps are made on the day of the week as selected,

·        twice monthly, with sweeps on the 15th and on the last business day of the month,

·        monthly, with a sweep on the last day of the month.

 

Under frequency options other than daily and whenever the selected sweeping date is not a business day, the sweeps shall be performed on the previous business day. The frequency selected shall apply either to all the PARTICIPATING COMPANIES attached to the INTERNATIONAL POOL LEADER or to each PARTICIPATING COMPANY separately.

 

Each sweep, whether direct or indirect and according to the option selected in this Appendix, shall be equivalent

 

·        either to the gross amount of each computed aggregate, on a credit or debit basis

·        or to the net amount of the aggregates of the same PARTICIPATING COMPANY including both credit and debit entries.

 

Unless otherwise agreed, in particular in case of non daily sweeping and under Article 2 and under paragraphs B) and C) hereinafter, all aggregates relating to a same day shall be swept irrespective of their value date and shall be subject to compliance with the overdraft facility granted to the INTERNATIONAL POOL LEADER as stipulated in Article 3. Any sweep exceeding the facility shall not be carried out and shall be withheld until a position is built up which allows sweeps to be effected in compliance with such limit. The sweeps will then be carried out in accordance with the conditions described in paragraph C) hereunder.

 

Whenever only the available aggregates are to be swept, as provided for in this Appendix, and notably in case of non daily sweeping, any value date prior or equal to the reference selected date (D, D+1 business or calendar date; D being the calendar date of the accounting day to be swept by the CONTRACTING BANK) shall be considered as per the conditions detailed hereunder. The sweeping of aggregates with a value date later than the selected reference date will be deferred until such aggregates become available under the conditions set forth in such option.

 

The transfers swept to accounts held with any SOCIETE GENERALE GROUP’S BANK shall be exonerated from debit transaction commission in so far as such a commission is locally applied.

 

18

 

For the accounts held in OTHER BANKS:

 

·                  Only the sweeps in net aggregates available in value are carried out by the CONTRACTING BANK in order to sweep only the part of the balance(s) that is available.

 

·                  Any sweep of any available debit balance will be carried out for a maximum amount up to a debit limit set for each company as specified in appendix 1 (maximum debit position to be funded) and as for each account held in any OTHER BANK.

 

B)                     As for the PARTICIPATING COMPANIES, and according to agreement, no amount exceeding the minimum credit balance to be maintained on each of the accounts shall be swept. As the case may be, aggregates may be totally or partially swept as soon as the minimum credit balance amount is reached. All sweeps shall otherwise be effected under the conditions set in this appendix.

 

C)                     In order to sweep only significant amounts, and subject to the adoption of sweep thresholds, only the sweeps of an amount equal to or higher than the threshold selected will be carried out in the conditions described above.

 

Any sweep below the threshold shall be deferred. The deferred sweeps shall be incorporated in the sweeps computed during the following business days, provided that the cumulative sweep amounts comply with the set threshold and that the value date of the deferred sweeps be prior than or equal to the date of the sweep in which they have been incorporated and of which they take the value date. Where sweeps with different value dates are carried out in the same accounting day, the deferred sweeps with the closest value date of the deferred sweeps will be incorporated.

 

In the case of direct sweeps, each domestic cash account is subject to a threshold and, in the case of indirect sweeping, each sweep account is similarly subject to a threshold.

 

D)                     Each sweep will be given a standard additional narrative by the CONTRACTING BANK including the references of the counterpart account. Where the customised additional narrative option referred to in Appendix 1 has been selected, the INTERNATIONAL POOL LEADER’s or each PARTICIPATING COMPANY’s own narrative will be substituted for the CONTRACTING BANK’s standard narrative.

 

E)                      If, for technical reasons, the balances of certain accounts have not been available for computation of the sweep amounts, regularization shall take place as soon as possible under good value.

 

F)                       In the case of indirect sweeps, and under the option set out in this appendix, the companies may request the CONTRACTING BANK to automatically zero-balance the sweep account(s) on a monthly basis.

 

This zero-balancing is processed either on the last business day of the current month, taking into account the balance of the previous day, or on the first business day of the following month, taking into account the balance of the last business day of the month. In both cases, the value date applied to the zero-balancing transfer is the date of the last business day of the current month.

 

	
 
    	
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19

	
  

  	
   SERVICE AGREEMENT APPENDIX 1.1 - 1 / 1 Terms
  and conditions of sweeps and details of participating companies INTERNATIONAL
  POOL LEADER: SOCIETE GENERALE GROUP’S BANK Localisation: BIC Code:
  INTERNATIONAL POOL LEADER NAME: POCCA HOLDINGS SIREN N°: (if the company is
  established in France) Country of establishment of the International Pool
  Leader: Belgique Country Code: BE INTERNATIONAL CASH CONCENTRATION ACCOUNT:
  Acct. N°: 34 positions BIC Code: Currency Code: EUR SWEEP FREQUENCY: THE SAME
  FREQUENCY FOR ALL PARTICIPANTS: YES : NO: If NO, please refer to Appendix
  1.2. If Yes, please choose the frequency applicable to all entities Daily: or
  Weekly : Selected day : or twice monthly : or monthly : (First 2 letters of
  the day SWEEP MODE APPLICABLE TO ALL PARTICIPANTS : YES : NO: If NO : please
  state the sweep mode specific to each PARTICIPATING COMPANY. direct :
  indirect : (1) If indirect mode : automated end-of-the-month zero-balancing
  for all sweeping accounts: NO : YES : If yes, balance of the last business
  day or balance of the day before the last business day GROSS AGGREGATES: NET
  AGGREGATES (1) AVAILABLE AGGREGATES: YES: NO: (1) If YES, please select
  reference date: D : or D+1 business day : or D+1 calendar day : PERSONALIZED
  SWEEP NARRATIVE : YES: NO: (2) (received or issued by the international pool
  leader) If Yes, Heading selected : (maximum 28 digits or numerals) BILLING
  ACCOUNT Acct.N° : 34 positions BIC Code : Currency Code : EUR NAME OF THE
  CONTACT AT THE INTERNATIONAL POOL LEADER’S FOR THE CONTACTING BANK Name :
  E.mail : Phone N°: LG : KD For contracting bank use only 1) Mandatory 2)
  Optional 17/39

  

 

	
  

  	
  SERVICE
  AGREEMENT APPENDIX 1.2 - 1 / 1 (An appendix 1.2 shall be completed for each
  participating company) PARTICIPATING COMPANY (ACCOUNTS HELD IN THE BOOKS OF
  SOCIETE GENERALE GROUP’S BANK) SOCIETE GENERALE GROUP’S BANK: Localisation:
  BIC Code: NAME OF THE PARTICIPATING COMPANY: GELASE SIREN N°: (if the company
  is established in France) Country of establishment of the Participating
  company: Belgique Country Code: BE FREQUENCY OF SWEEPS SPECIFICALLY
  APPLICABLE TO THIS COMPANY (if applicable) : Daily : or Weekly : preferred
  day : or twice monthly : or monthly : (First 2 letters of the day) PERSONALIZED
  SWEEP NARRATIVE: Yes No If Yes, Heading selected: (maximum 28 digits or
  numerals) SWEEP MODE BY THE INTERNATIONAL POOL LEADER direct : indirect : IF
  INDIRECT MODE : automated end-of-the-month zero-balancing for all sweeping
  accounts: NO : YES : If yes, please choose the reference balance: the last
  business day or the day before the last business day SWEEP ACCOUNT (only if
  indirect sweeping is selected) Acct. N°: 34 positions BIC Code : Currency
  Code : Sweep Threshold : No Yes Amount : K currency of acct (2) DOMESTIC CASH
  ACCOUNT TO BE SWEPT Please tick the box provided if the account recording
  intra-group interest is concerned — Cf, art 4 Acct. N°: 34 positions BIC Code
  Currency Code EUR Intragroup interest charge accont (3) Sweep Threshold : NO
  Yes Amount : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K
  currency of acct (2) LL : KD For bank use only 1) Compulsory. 2)Optional 3)
  choose only one charge account per Participating company 4) for direct
  sweeping only 18/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 1 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localisation: BIC Code: NAME OF THE PARTICIPATING COMPANY: GEANT
  INTERNATIONAL SIREN N°: (if the company is established in France) Country of
  establishment of the Participating company: ILLEGIBLE Country Code: NL FREQUENCY
  OF SWEEPS SPECIFICALLY APPLICABLE TO THIS COMPANY (if applicable) : Daily :
  or Weekly : preferred day : or twice monthly : or monthly : (First 2 letters
  of the day) NET AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED : Amount (k
  currency) Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading
  selected: (maximum 28 digits or numerals) SWEEPING MODE BY THE POOL LEADER
  direct : DOMESTIC CASH ACCOUNTS TO BE SWEPT Please tick the box provided if
  the account recording intra-group interest is concerned — cf. art 6 Acct. N°:
  34 positions BIC Code : Currency Code :EUR Sweep Threshold : NO Yes Amount :
  K currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of
  acct (2) Acct. N°: 34 positions BIC Code Currency Code Sweep Threshold : NO
  Yes Amount : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K
  currency of acct (2) 2) Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 2 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localisation: BIC Code: NAME OF THE PARTICIPATING COMPANY: GEANT
  HOLDING SIREN N°: (if the company is established in France) Country of
  establishment of the Participating company: ILLEGIBLE Country Code: NL FREQUENCY
  OF SWEEPS SPECIFICALLY APPLICABLE TO THIS COMPANY (if applicable) : Daily :
  or Weekly : preferred day : or twice monthly : or monthly : (First 2 letters
  of the day) NET AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED : Amount (k
  currency) Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading
  selected: maximum 28 digits or numerals) SWEEPING MODE BY THE POOL LEADER
  direct : DOMESTIC CASH ACCOUNTS TO BE SWEPT Please tick the box provided if
  the account recording intra-group interest is concerned — cf. art 6 Acct. N°:
  34 positions BIC Code : Currency Code :EUR Sweep Threshold : NO Yes Amount :
  K currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of
  acct (2) Acct. N°: 34 positions BIC Code Currency Code Sweep Threshold : NO Yes
  Amount : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K
  currency of acct (2) 2) Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 3 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localisation: BIC Code: NAME OF THE PARTICIPATING COMPANY: MARUSHKA HOLDING
  SIREN N°: (if the company is established in France) Country of establishment
  of the Participating company ILLEGIBLE Country Code: NL FREQUENCY OF SWEEPS
  SPECIFICALLY APPLICABLE TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED : Amount (k currency)
  Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected:
  (maximum 28 digits or numerals) SWEEPING MODE BY THE POOL LEADER direct :
  DOMESTIC CASH ACCOUNTS TO BE SWEPT Please tick the box provided if the
  account recording intra-group interest is concerned — cf. art 6 Acct. N°: 34
  positions BIC Code : Currency Code : Sweep Threshold : NO Yes Amount : K
  currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of acct
  (2) Acct. N°: 34 positions BIC Code Currency Code Sweep Threshold : NO Yes Amount
  : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of
  acct (2) 2) Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.4 - 4 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY: GEANT
  FONCIERE SIREN N°: (if the company is established in France) Country of
  establishment of the participating company: Pays-Bas Country Code: NL FREQUENCY
  OF SWEEPS APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily :
  or Weekly : preferred day : or twice monthly : or monthly : (First 2 letters
  of the day) NET AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED: Amount (k
  currency) Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading
  selected: (maximum 28 digits or numerals) SWEEP MODE BY THE INTERNATIONAL
  POOL LEADER direct : DOMESTIC CASH ACCOUNTS TO BE SWEPT Please tick the box
  provided if the account recording intra-group interest is concerned - cf. art
  6 Acct. N°: 34 positions BIC Code : Currency Code : Sweep Threshold : NO Yes Amount
  : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of
  acct (2) Acct. N°: 34 positions BIC Code Currency Code Sweep Threshold : NO Yes
  Amount : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K
  currency of acct (2) 2)Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 5 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY: BERGSAAR
  SIREN N°: (if the company is established in France) Country of establishment
  of the Participating company: Pays-Bas Country Code: NL FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED: Amount (k currency) Currency
  PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected: (maximum 28
  digits or numerals) SWEEP MODE BY THE POOL LEADER direct : DOMESTIC CASH
  ACCOUNTS TO BE SWEPT Please tick the box provided if the account recording
  intra-group interest is concerned - cf. art 6 Acct. N°: 34 positions BIC Code
  Currency Code : Sweep Threshold : NO Yes Amount : K currency of acct (2) Minimum
  balance (4) : NO Yes Amount : K currency of acct (2) Acct. N°: 34 positions
  BIC Code Currency Code : Sweep Threshold : NO Yes Amount : K currency of acct
  (2) Minimum balance (4) : NO Yes Amount : K currency of acct (2) 2)Optional
  4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 6 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code : NAME OF THE PARTICIPATING COMPANY COBOOP SIREN
  N°: (if the company is establiched in France) Country of establishment of the
  Participating company: Pays - Bas Country Code: NL FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED : Amount (k currency)
  Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected:
  (maximum 28 digits or numerals) SWEEP MODE BY THE POOL LEADER direct : DOMESTIC
  CASH ACCOUNT TO BE SWEPT Please tick the box provided if the account
  recording intra-group interest is concerned — Cf. art 6 Acct. N°: 34
  positions BIC Code Currency Code Sweep Threshold : NO Yes Amount : K currency
  of acct (2) Minimum balance : NO Yes Amount : K currency of acct (2) Acct.
  N°: BIC Code Currency Code Sweep Threshold : NO Yes Amount : K currency of
  acct (2) Minimum balance (4) : NO Yes Amount : K currency of acct (2) 2)
  Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 7 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code : NAME OF THE PARTICIPATING COMPANY TONQUIN
  SIREN N°: (if the company is establiched in France) Country of establishment
  of the Participating company: Pays - Bas Country Code: NL FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED : Amount (k currency)
  Currency PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected:
  (maximum 28 digits or numerals) SWEEP MODE BY THE POOL LEADER direct : DOMESTIC
  CASH ACCOUNT TO BE SWEPT Please tick the box provided if the account
  recording intra-group interest is concerned — Cf. art 6 Acct. N°: 34
  positions BIC Code Currency Code Sweep Threshold : NO Yes Amount : K currency
  of acct (2) Minimum balance : NO Yes Amount : K currency of acct (2) Acct.
  N°: BIC Code Currency Code Sweep Threshold : NO Yes Amount : K currency of
  acct (2) Minimum balance (4) : NO Yes Amount : K currency of acct (2) 2)
  Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 8 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY QUINAM SIREN
  N°: (if the company is established in France) Country of establishment of the
  Participating company: Pays-Bas Country Code: N/L FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED: Amount (K currency) Currency
  PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected: (maximum 28
  digits or numerals) SWEEPING MODE BY THE POOL LEADER direct : DOMESTIC CASH
  ACCOUNTS TO BE SWEPT Please tick the box provided if the account recording
  intra-group interest is concerned — Cf. art 6 Acct. N°: 34 positions BIC Code
  Currency Code Sweep Threshold : NO Yes Amount : K currency of acct (2) Minimum
  balance (4) : NO Yes Amount : K currency of acct (2) Acc No: 34 positions BIC
  Code Currency Code Sweep Threshold : No Yes Amount : K currency of acct (2) Minimum
  balance (4) : No Yes Amount : K currency of acct (2) 2)Optional 4) for direct
  sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 9 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY GEANT BOLIUAR
  SIREN N°: (if the company is established in France) Country of establishment
  of the Participating company: Pays-Bas Country Code: N/L FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED: Amount (K currency) Currency
  PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected: (maximum 28
  digits or numerals) SWEEPING MODE BY THE POOL LEADER direct : DOMESTIC CASH
  ACCOUNTS TO BE SWEPT Please tick the box provided if the account recording
  intra-group interest is concerned — Cf. art 6 Acct. N°: 34 positions BIC Code
  Currency Code Sweep Threshold : NO Yes Amount : K currency of acct (2) Minimum
  balance (4) : NO Yes Amount : K currency of acct (2) Acc No: 34 positions BIC
  Code Currency Code Sweep Threshold : No Yes Amount : K currency of acct (2) Minimum
  balance (4) : No Yes Amount : K currency of acct (2) 2)Optional 4) for direct
  sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 10 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY GEANT
  INTERNATIONAL PARTICIPATIONS SIREN N°: (if the company is established in
  France) Country of establishment of the Participating company: Pays-Bas
  Country Code: N/L FREQUENCY OF SWEEPS APPLICABLE SPECIFICALLY TO THIS COMPANY
  (if applicable) : Daily : or Weekly : preferred day : or twice monthly : or
  monthly : (First 2 letters of the day) NET AGGREGATES: MAXIMUM DEBIT POSITION
  TO BE FUNDED: Amount (K currency) Currency PERSONALIZED SWEEP NARRATIVE: Yes No
  If Yes, Heading selected: (maximum 28 digits or numerals) SWEEPING MODE BY
  THE POOL LEADER direct : DOMESTIC CASH ACCOUNTS TO BE SWEPT Please tick the
  box provided if the account recording intra-group interest is concerned — Cf.
  art 6 Acct. N°: 34 positions BIC Code Currency Code Sweep Threshold : NO Yes Amount
  : K currency of acct (2) Minimum balance (4) : NO Yes Amount : K currency of
  acct (2) Acc No: 34 positions BIC Code Currency Code Sweep Threshold : No Yes
  Amount : K currency of acct (2) Minimum balance (4) : No Yes Amount : K
  currency of acct (2) 2)Optional 4) for direct sweeping only 20/39

  

 

	
  

  	
  SERVICE
  AGREEMENT INTERNATIONAL GROUP CASH CONCENTRATION APPENDIX 1.3 - 11 / 11
  PARTICIPATING COMPANY (accounts held in the books of an other bank) (An
  appendix 1.3 shall be completed for each participating company) NAME OF OTHER
  BANK: Localization: BIC Code: NAME OF THE PARTICIPATING COMPANY DTC FINANCE
  SIREN N°: (if the company is established in France) Country of establishment
  of the Participating company: Pays-Bas Country Code: N/L FREQUENCY OF SWEEPS
  APPLICABLE SPECIFICALLY TO THIS COMPANY (if applicable) : Daily : or Weekly :
  preferred day : or twice monthly : or monthly : (First 2 letters of the day) NET
  AGGREGATES: MAXIMUM DEBIT POSITION TO BE FUNDED: Amount (K currency) Currency
  PERSONALIZED SWEEP NARRATIVE: Yes No If Yes, Heading selected: (maximum 28
  digits or numerals) SWEEPING MODE BY THE POOL LEADER direct : DOMESTIC CASH
  ACCOUNTS TO BE SWEPT Please tick the box provided if the account recording
  intra-group interest is concerned — Cf. art 6 Acc. N°: 34 positions BIC Code
  Currency Code EUR Sweep Threshold : NO Yes Amount : K currency of acct (2) Minimum
  balance (4) : NO Yes Amount : K currency of acct (2) Acc. No: 34 positions
  BIC Code Currency Code Sweep Threshold : No Yes Amount : K currency of acct
  (2) Minimum balance (4) : No Yes Amount : K currency of acct (2) 2)Optional
  4) for direct sweeping only 20/39

  

 

 

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION

 

Appendix 2

 

ADDITIONAL SERVICES

 

(please join only the appendixes regarding the services subscribed)

 

List of additional services

 

Please tick the box provided regarding the special services

 

	
Electronic account statements
    	
 
    	
Appendix 2.1
    
	
Daily transmission of   account statement including the sweeps
    	
 
    	
Yes x  No o
    
	
 
    	
 
    	
 
    
	
Periodic statement of cumulative sweeps
    	
 
    	
Appendix 2.2
    
	
Transmission of cumulative   sweeps statement
    	
 
    	
Yes o  No x
    
	
 
    	
 
    	
 
    
	
Intra-group interest
    	
 
    	
Appendix 2.3
    
	
Calculation and sending of   intra-group interest
    	
 
    	
Yes o No x
    
	
 
    	
 
    	
 
    
	
Calculation sending and   posting of intra-group interest
    	
 
    	
Yes o No x
    
	
 
    	
 
    	
 
    
	
Preparatory statement for Central Bank reporting
    	
 
    	
Appendix 2.4
    
	
Monthly statement
    	
 
    	
Yes o No x
    
	
 
    	
 
    	
 
    
	
Intra-group loans
    	
 
    	
Appendix 2.5
    
	
Daily statement
    	
 
    	
Yes o No x
    

 

33

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION

 

Appendix 2 (1/3)

 

ADDITIONAL SERVICES

 

DESCRIPTION AND CONDITIONS FOR THE SUPPLY OF THE STATEMENTS

 

1 Details and conditions of supply of electronic account statements.

 

The electronic account statements shall be made available to the INTERNATIONAL POOL LEADER in accordance with the choice given in this Appendix 2.1:

 

·    through the electronic account services of the CONTRACTING BANK, or

·             through the relevant department of the SOCIETE GENERALE GROUP’S BANK or OTHER BANK designated hereunder and to which the electronic account statements will be sent by the «SOGECASH InfoSwift» service of the CONTRACTING BANK

·             through SOGECASH WEB.

 

The conditions of the CONTRACTING BANK and the SOCIETE GENERALE GROUP’S BANK electronic account services are described in the Technical Conditions of the said services and are subject to separate agreements.

 

2 Details and condition of supply of the Periodic Statements of cumulative sweeps, Intra-group Interest Statements, Preparatory Statement for Central Bank Reporting, Daily loans  Statements.

 

The statements hereabove mentioned will be available to companies following the choice mentioned respectively on appendix 2.2, 2.3, 2.4, 2.5.

 

If the option referred to in article 6 in the form of HTML or TXT files is selected for these statements, the CONTRACTING BANK shall send through SOGECASH WEB or by e-mail to the electronic address given herein.

 

If files under TXT format are required, the CONTRACTING BANK provides the company with a macro by e-mail in order to create automated EXCEL files. A guide for use will be send together with the macro.

 

34

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION

 

Appendix 2 (continuation 2/3)

ADDITIONAL SERVICES

(fill out only where necessary)

 

3 E-mail addresses of concerned companies for Additional services

 

	
Pool Leader:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Participating   companies:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address 
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address 
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address 
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address 
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address 
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    

 

35

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION

 

Appendix 2 (continuation 3/3)

 

ADDITIONAL SERVICES

(fill out only where necessary)

 

E-mail addresses of concerned participating companies for Additional services

 

	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Company
    	
:
    	
 
    
	
 
    	
 
    	
 
    
	
E-mail address
    	
:
    	
 
    

 

36

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION
 Appendix 2.1

 

ELECTRONIC ACCOUNT STATEMENTS

 

1. Contents of the Account statements

 

·                  As an option the CONTRACTING BANK will provide daily to the INTERNATIONAL POOL LEADER the electronic account statement(s) with the posted sweeps carried out

 

The accounts concerned may be:

 

·    the cash concentration account of the INTERNATIONAL POOL LEADER;

·    the domestic cash accounts of each PARTICIPATING COMPANY;

·    and as the case may be, the sweep account of each PARTICIPATING COMPANY.

 

For each business day, the electronic account statements dated on the previous business of the International cash concentration account and each domestic cash account shall include the posted sweeps carried out on D+1 in accordance with the terms and conditions set forth in Article 2 on the basis of the transactions registered on D in the commercial accounts of each PARTICIPATING COMPANY.

 

Direct sweeps:

 

In accordance with the indications on each electronic account statement, each domestic cash account shall be swept both as regards posting position and value date, except in the case of « available aggregates », where only the available value date position will be swept.

 

Indirect sweeps:

 

In accordance with the indications on each electronic account statement, the sweep account of each PARTICIPATING COMPANY will sweep in posting position and value date, all the positions of the domestic cash accounts of that company, except in the case of « available aggregate », where only the available value date position will be swept.

 

In all cases the POOL LEADER account will show the group cash position resulting from the sweeps carried out.

 

Purpose of the information.

 

The electronic account statements shall be made available to the companies concerned for information purposes only. Only account statements on paper sent at the same time by each relevant SOCIETE GENERALE GROUP’S BANK shall be considered as a means of proof between the parties.

 

37

 

SERVICE AGREEMENT
 INTERNATIONAL GROUP CASH CONCENTRATION

 

Appendix 2.1 (continuation)

 

ELECTRONIC ACCOUNT STATEMENTS

 

2. Supply of the Account statements

 

	
Channels
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Sogecash
   International
    	
 
    	
 
    	
 
    	
Sogecash
   International
    	
 
    	
Sogecash
    	
 
    
	
Accounts
    	
 
    	
Sogestel
    	
 
    	
Sogestel TS
    	
 
    	
Reporting
    	
 
    	
Sogecash Web
    	
 
    	
infoSwift
    	
 
    	
SWIFTNet
    	
 
    
	
International   Cash  Concentration Account
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N° AAY6401
    	
 
    	
Subscriber N°
    	
 
    	
Bank: 
   Branch:
   BIC code:
    	
 
    	
BIC code:
    	
 
    
	
Domestic   Cash  Accounts
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N° AAY6401
    	
 
    	
Subscriber N°
    	
 
    	
Bank: 
   Branch:
   BIC code:
    	
 
    	
BIC code:
    	
 
    
	
Sweep   Accounts
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N°
    	
 
    	
Subscriber N° AAY6401
    	
 
    	
Subscriber N°
    	
 
    	
Bank: 
   Branch:
   BIC code:
    	
 
    	
BIC code:
    	
 
    

 

(1) concerns only the accounts held in France

 

38

 

 

Annex 3

 

To the Cash Pooling Agreement

 

Act of accession

 

Polca, 5 Place du Champ de Mars, Brussels, Belgium,

 

To the attention of the Managing-director,

 

Re: Accession to the Polca Cash Pooling Agreement (the “Agreement”) of [X] (the “participating Company”)

 

20.                              All terms used herein shall have the same meaning as defined in the Agreement.

 

21.                              [X] confirms having received and read all the provisions of the Agreement as well as any other information, document considered useful and necessary for the Agreement and its implementation.

 

22.                              [X] states to be controlled directly or indirectly by Casino Guichard Perrachon within the meaning of the definition of the term “Casino Group” found in Article 1 of the Agreement.

 

23.                              [X] confirms having provided Polca with its latest financial accounts, including financial information on its equity and its financial debts, in accordance with Article 6.2 of the Agreement, on the basis of which the Maximum Amount of Advances is set to [Y] million (in figures) euros.

 

24.                              [X] hereby agrees to be a Participating Company within the meaning of the Agreement, endorses each of the representations provided for in Article 9 of the Agreement, agrees to be bound without reservation by the terms and conditions of the Agreement, to benefit from all the rights it creates and engages to perform all the obligations imposed upon it.

 

25.                              For the purpose of participating to the cash pooling transactions provided for in the Agreement, [X] states [that the account No. (      ) opened with the Bank should be considered as its Secondary Account for the purposes of the Agreement / not having any Secondary Account(1)].

 

26.                              We confirm having the authority and capacity to sign the Act of accession to the Agreement.

 

27.                              Please note that all correspondences relating to the Agreement will be sent by postal letter, fax, e-mail, telephone at:

 

·               [Name]

 

(1)  Delete whichever is inapplicable

 

 

·               [details]

 

For the purposes of articles 3 and 4 of the Agreement, only the person bellow or substituted will have exclusively the capacity and the authority to represent us:

 

·               [Name]

 

·               [Adress]

 

28.                              As we have negotiated and agreed, we have noted that the date of entry into force of the Agreement toward us is fixed to

 

For the good shape, please return to us one of the two originals of these preceded by the words “read and approved” and your handwritten signature.

 

Kind regards,

 

	
 
    	
Done at                         ,   on
    
	
 
    	
 
    
	
 
    	
[X]
    
	
 
    	
 
    
	
 
    	
by
    	
 
    

 

2Exhibit 10.41

 

EXECUTION VERSION

 

FIRST AMENDMENT TO THE OPERATIONAL AGREEMENT

 

 

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

 

VIA VAREJO S.A.

 

CNOVA COMÉRCIO ELETRÔNICO S.A.

 

CNOVA N.V.

 

NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A.

 

 

July 24, 2014

 

 

FIRST AMENDMENT TO THE OPERATIONAL AGREEMENT

 

By this First Amendment dated as of July 24, 2014 to the Operational Agreement dated October 17, 2013, among Nova Pontocom Comércio Eletrônico S.A., Via Varejo S.A. and Companhia Brasileira de Distribuição (“Operational Agreement”), the Parties:

 

(1)                              COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO, a publicly held company incorporated under the laws of Brazil,  enrolled with the National Corporate Taxpayers Register of the Ministry of Finance (“CNPJ/MF”) under No. 47.508.411/0001-56, with head offices in the city of São Paulo, state of São Paulo, at Avenida Brigadeiro Luiz Antônio, 3142, herein represented pursuant to its bylaws (hereinafter referred to as “CBD”);

 

(2)                              VIA VAREJO S.A., a publicly held company incorporated under the laws of Brazil, enrolled with the CNPJ/MF under No. 33.041.260/0652-90, with head offices in the city of São Caetano do Sul, state of São Paulo, at Rua João Pessoa, 83, herein represented pursuant to its bylaws (hereinafter referred to as “Via Varejo”);

 

(3)                              CNOVA COMÉRCIO ELETRÔNICO S.A., a corporation incorporated under the laws of Brazil, enrolled with CNPJ/MF under No. 07.170.938/0001-07, with head offices in the city of São Paulo, state of São Paulo, at Rua Gomes de Carvalho, 1609, 3rd to 7th floors, herein represented pursuant to its bylaws (hereinafter referred to as “Nova OpCo” or the “Company”);

 

(4)                              CNOVA N.V., a company incorporated under the laws of the Netherlands, with head offices in Professor Dr Dorgelolaan 30D, 5613 AM Eindhoven, Amsterdam herein represented pursuant to its articles of incorporation (hereinafter referred to as “Cnova”).

 

CBD, Via Varejo, Nova OpCo and Cnova (the latter exclusively in relation to the provisions set forth in Section 1.1 below) are hereinafter jointly referred to as “Parties” and each of them is individually and indistinctively referred to as “Party”.

 

And, as intervening and consenting party,

 

(5)                              NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A., a corporation incorporated under the laws of Brazil, enrolled with CNPJ/MF under No. 09.358.108/0001-25, with head offices in the city of São Paulo, state of São Paulo, at Rua Gomes de Carvalho, 1609, 3rd to 7th floors, herein represented pursuant to its bylaws (hereinafter referred to as “NPC”);

 

WHEREAS:

 

(A)                            On October 17, 2013 CBD, Via Varejo and NPC entered into the Operational Agreement in order to define the rules to promote an alignment of the interests between Via Varejo, CBD and NPC in the development of their activities;

 

(B)                            Under a project of reorganization of the e-commerce businesses of the Casino Group (“E-Commerce Restructuring”), on July 21, 2014, NPC approved the contribution of its operating assets and liabilities into Nova OpCo, its wholly-owned subsidiary at the time;

 

(C)                            As part of the E-Commerce Restructuring, Casino Guichard-Perrachon (“CGP”), the ultimate controlling shareholder of NPC, CBD and Via Varejo, established Cnova to

 

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concentrate under a single holding company the e-commerce businesses of (i) NPC, which conducts e-commerce business in Brazil, and (ii) CGP, including CDiscount and CDiscount International BV, each wholly-owned by Casino Entreprise and which conduct e-commerce business in France and abroad;

 

(D)                            On July 24, 2014, with the completion of the E-Commerce Restructuring, Nova OpCo has become directly and wholly-owned by Cnova, therefore CBD, Via Varejo and certain minority shareholders of NPC to become indirect shareholders of Cnova;

 

(E)                             In view of the E-Commerce Restructuring, the Parties have agreed to execute this first amendment to the Operational Agreement in order to modify certain terms and conditions therein to conform it to the current needs.

 

NOW, THEREFORE, THE PARTIES AGREE to enter into this first amendment on the date hereof, by which the Operational Agreement is restated in its entirety and shall be in force and governed by the following terms and conditions:

 

1                                      DEFINITIONS AND INTERPRETATION

 

1.1                            Definitions. The capitalized terms below, when used in this Agreement, as well as their plural or singular, male or female form, shall have the following meanings:

 

“Affiliate” means any company that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with a Party. It is further included in the concept of “Affiliate”, the officers, employees, consultants, agents or proxies of an Affiliate or Party, as the case may be.

 

“Agreement” or “Operational Agreement” means this Operational Agreement executed on October 17, 2013, as amended on July 24, 2014.

 

“Brands” means, when mentioned together or indistinctly, the brands “Ponto Frio” and “Casas Bahia” and their derivations, registered with the Brazilian National Institute of Industrial Property — Instituto Nacional da Propriedade Industrial — INPI and held by Via Varejo, and the brand “Extra” and its derivations, registered with INPI and held by CBD, as well as any brand that may be licensed to Nova OpCo by CBD or Via Varejo, being the Brands held by CBD and Via Varejo that were licensed to Nova OpCo by the execution of the Trademark License Agreements.

 

“Brazilian Corporations Law” means Federal Law No. 6,404 dated December 16, 1976, as amended.

 

“Brazilian Code of Civil Procedure” means Federal Law No. 5,869 dated January 11, 1973, as amended.

 

“CBD” means Companhia Brasileira de Distribuição.

 

“Committee” has the meaning set forth in Section 3.1.

 

“ICC Rules” has the meaning set forth in Section 19.3.

 

“ICC” means the International Chamber of Commerce.

 

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“CGP” means Casino Guichard-Perrachon;

 

“Claim” means any and all claims, encumbrances, liens, court decisions, appeal, debts, obligations, damages, injuries, costs (including legal costs and costs of other professionals), losses, expenses, litigation or causes of action of whatever nature.

 

“Common Items” means, in relation to Nova OpCo, items of common assortment between Via Varejo and Nova OpCo and, in relation to CBD, items of common assortment between Via Varejo and CBD (excluding food retail).

 

“Confidential Information” has the meaning set forth in Section 14.1.

 

“Cnova” means Cnova N.V.

 

“Differentiated Protection Items” has the meaning set forth in Section 4.4.1.

 

“Disclosing Party” has the meaning set forth in Section 14.1(b).

 

“Extra Stores” means the physical stores under the brand “Extra” and its derivations as operated by CBD (excluding food retail).

 

“E-Commerce” means the non-presential sales in any of its forms, including media such as internet websites, mobile applications, telesales, as operated by Nova OpCo.

 

“E-Commerce Restructuring” has the meaning set forth in Recitals (B);

 

“FCPA” means the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.

 

“Indemnified Party” has the meaning set forth in Section 12.1.

 

“Indemnifying Party” has the meaning set forth in Section 12.1.

 

“Letter of Authorization of Domain Name Use” means the Letter of Authorization of Domain Name Use between CBD, Via Varejo and Nova OpCo, executed on July 24, 2014.

 

“Market Place” means the business model, as operated by the Nova OpCo, whereby stores can publish their portfolio of products in a particular website in order to get customers traffic from such website and effect transactions in return for a commission on sales.

 

“Negligence” means negligence, recklessness or malpractice, as well as any action or omission, whether single or cumulative, performed with carelessness or indifference as to the harmful consequences thereof, whether actual or potential.

 

“Nova OpCo” means Cnova Comércio Eletrônico S.A. (new name of Bruxelas Empreendimento e Participações S.A.);

 

“NPC” means Nova Pontocom Comércio Eletrônico S.A.

 

“Parties” means CBD, Via Varejo and Nova OpCo. Exclusively for the purposes of Sections 2.1.2(i), 3, and 9 to 19, the term “Parties” or “Party” also refers to Cnova.

 

“Receiving Party” has the meaning set forth in Section 14.1(a).

 

“Relevant Media” means the following (i) broadcast television channels with national coverage: Globo, SBT, Record and Band, and (ii) newspapers and mass-circulation

 

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magazines: O Estado de Sao Paulo newspaper, Folha de São Paulo newspaper, O Globo newspaper, Veja magazine, Exame magazine, and Época magazine.

 

“Trademark License Agreements” means the Trademark License Agreement between Via Varejo and Nova OpCo and the Trademark License Agreement between CBD and Nova OpCo, both executed on July 24, 2014.

 

“Via Varejo” means Via Varejo S.A.

 

“VPC” means of cooperative advertising funds, received by the supplier for use in marketing activities.

 

“Willful Misconduct” means any intentional or wanton conscious or reckless act or omission as constitutes, in effect, a willful, intentional, conscious, reckless and utter disregard of any provision of this Agreement or of applicable law.

 

1.2                            Interpretation. In this Agreement, except to the extent that the context requires otherwise:

 

1.2.1                   Any reference to the sections and appendices shall be deemed a reference to sections of this Agreement;

 

1.2.2                   Headings used in this Agreement are inserted for convenience only and shall be ignored in construing this Agreement;

 

1.2.3                   Reference to a “person” shall be deemed to include any natural person, corporation, company, consortium, joint venture, funds, governmental authority, or other incorporated or unincorporated entity or association, and unless the context otherwise requires, the singular shall be deemed to include the plural and vice versa;

 

1.2.4                   The words “include” and “including” are to be construed without limitation.

 

1.2.5                   A reference to a “day” means a calendar day according to the civil calendar; a reference to “a month” means any period of thirty (30) consecutive days; and a reference to “a year” means a calendar year according to the civil calendar.

 

2                                      PURPOSE OF THE AGREEMENT

 

2.1                            Purpose

 

2.1.1                   This Agreement establishes the terms and conditions to promote the alignment between businesses of the Brands operated in physical stores and on virtual environment by the Parties, in order to increase synergies and create value for its shareholders.

 

2.1.2                   The Parties hereby acknowledge and agree that:

 

(i)                                  each Party shall act in good faith in relation to the other Party and endeavor its best efforts to ensure compliance with the provisions of this Agreement; and

 

(ii)                               each Party shall act as reasonably required to, pursuant to the principles set forth in Section 2.2, fulfill the purpose of this Agreement.

 

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2.2                            Principles

 

(i)                                  the Parties shall jointly implement all opportunities to improve synergies between the operations of the Parties periodically on an ongoing basis;

 

(ii)                               the obligations of the Parties under this Agreement shall be based on economy of scale principles, so as to enable the reduction of shared operating costs and greater bargaining power, which should benefit the operations of the Parties;

 

(iii)                            the Parties undertake to seek sales growth of E-Commerce, of physical stores and of multi-channeling of the Brands;

 

(iv)                           the Parties undertake to observe the protective measures, aiming to improve the alignment between the operations of the physical stores and E-Commerce of the Brands;

 

(v)                              Via Varejo and CBD, in connection to the E-Commerce of the corresponding Brands, shall establish, jointly with Nova OpCo, mutual goals of growth, in order to engage and facilitate the fulfillment of the objectives set forth in this Agreement; and

 

(vi)                           Nova OpCo, with respect to E-Commerce of the corresponding Brands, agrees to use the Brands in accordance with the terms of the Trademark License Agreements and maintain appropriated levels of service to the e-commerce in Brazil.

 

2.3                            Term. This Agreement shall be effective as of the date hereof and shall continue in full force and effect for an initial term of twenty (20) years, renewable for another term of twenty (20) years in the event the renewal is agreed by all Parties.

 

3                                      MARKETING AND STRATEGY COMMITTEE

 

3.1                            Nova OpCo shall have a Marketing and Strategy Committee (“Committee”) , which shall have only an advisory role and non-binding resolutions. Such committee is created upon the will of the Parties and shall not be considered as a corporate body for any purpose.

 

3.2                            The members of the Committee shall act diligently and in the interest of the Nova OpCo, however, they shall not be considered as managers of Nova OpCo for their role in the Committee. None of the provisions contained in the Brazilian Corporations Law shall be applicable to them on the performance of their duties as Committee members. The Committee members who are also managers of a Party shall be subject to the provisions of the Brazilian Corporations Law only in relation to their acts performed in their capacity of managers of the corresponding Party.

 

3.3                            This Committee shall be composed of three (3) members, all appointed for a term of office of two (2) years, reelection being permitted. Cnova shall appoint one (1) member among its own officers or directors, CBD shall appoint one (1) member, and Via Varejo shall appoint one (1) member.

 

3.4                            The Committee, as a group, and each member of the Committee, individually, shall express its opinion and provide its report exclusively to the board of directors of Cnova

 

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and to the Party to this Agreement that appointed such member to the Committee, respectively.

 

3.5                            Duties. The Committee shall be responsible for supervising compliance with this Agreement, notably through the exercise of the following duties:

 

(a)                               evaluate and discuss issues of trademarks, marketing, logistics, warehousing, transportation and pricing related to Nova OpCo business to be submitted to the board of directors of Cnova;

 

(b)                               review and discuss the parameters for purchase and sale of goods by Nova OpCo, including in relation to the mix and volume of goods traded by Nova OpCo;

 

(c)                                review and discuss measures to promote multi-channeling and the interaction of E-Commerce operations with the physical stores of CBD and Via Varejo in order to capture synergies between these two operations; and

 

(d)                               analyze and discuss any other matters submitted by the board of directors of Cnova for the analysis of the Committee.

 

3.6                            Committee members. The members of the Committee must have knowledge about E-Commerce marketing, strategy, driving and implementing business, logistics and pricing.

 

4                                      COMMERCIAL ASPECTS

 

4.1                            Purchase management of Common Items

 

4.1.1                   Via Varejo shall conduct the negotiation of commercial terms and conditions with suppliers, including price, VPC, bonuses, payment terms and conditions, after sales, in relation to Common Items, provided that, on the one hand, Via Varejo shall guarantee to Nova OpCo and CBD, and on the other hand, Nova OpCo and CBD shall guarantee to Via Varejo the same commercial conditions in the purchase of Common Items obtained for its own business.

 

4.1.2                   Nova OpCo and CBD shall inform Via Varejo about their own specific needs with regards to suppliers’ payment conditions and the frequency, locations and delivery lots of Common Items, and Via Varejo shall ensure the compliance of these instructions by the suppliers. Nova OpCo and CBD may, at their own discretion, attend the respective meetings with the suppliers and have access to the orders placed on their behalf by Via Varejo

 

4.1.3                   Nova OpCo and CBD shall be responsible for determining the mix and volume of Common Items, and Nova OpCo and CBD shall, through Via Varejo, make the effective placement of purchase orders, being those firm orders, of Common Items to be sold on E-Commerce of the Brands and on the Extra Stores, as applicable.

 

4.2                            Management of purchases of other items

 

4.2.1                   With regards to any other items that are not Common Items, but purchased from the suppliers of the Common Items, Via Varejo shall be responsible for the entire process of purchasing the items to be sold on E-Commerce of the Brands and in Extra Stores, including negotiating with such suppliers, provided that Via Varejo

 

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observes the maximum price range for each item as determined by Nova OpCo and CBD, as applicable, and informed to Via Varejo.

 

4.2.2                   With regards to any other items to be offered for sale on E-Commerce of the Brands or in Extra Stores that are not Common Items or that are not purchased from the suppliers of the Common Items, or in case Via Varejo is not able to meet the maximum price range established by Nova OpCo or CBD in accordance with Section 4.2.1 above, Nova OpCo and CBD, as applicable, shall be liable for the entire process of purchasing such items to be sold on E-Commerce of the Brands and in Extra Stores, including negotiating with such other suppliers.

 

4.2.3                   With the purpose of implementing the purposes and principles of this Agreement set forth in Sections 2.1 and 2.2, Nova OpCo, CBD and Via Varejo should share their suppliers price tables and may, at their sole discretion, use any of the tables in commercial negotiations with suppliers, as well as develop, jointly, internal processes to ensure that the price tables of Via Varejo, CBD and Nova OpCo are always updated in the sharing system, except as prohibited by applicable law.

 

4.2.4                   Nova OpCo, CBD and Via Varejo shall not use, in an explicit manner, the price table, Nova OpCo of Via Varejo’s and CBD, CBD of Via Varejo’s and Nova OpCo’sand Via Varejo of Nova OpCo’s and CBD”s, to demand from the suppliers commercial condition even better than that found in the price tables shared by them.

 

4.3                            Exception to the purchase management. The purchase management provided for in Sections 4.1 and 4.2, conducted by Via Varejo in Brazil:

 

(a)                               shall not interfere in or include the process of international purchasing or the negotiation with global suppliers, which are conducted internationally by CGP, Cnova and their respective Affiliates; and

 

(b)                               does not include negotiations regarding private labels products and no-name products.

 

4.4                            Differentiated Protection Items

 

4.4.1                   In an attempt of maximum alignment of business planning and pricing of the E-Commerce of the Brands between Via Varejo and Nova OpCo, Via Varejo and Nova OpCo shall jointly define the pricing and commercialization strategies, including promotions and sales offers to the entire line of products and services, and shall keep weekly discussions in the Committee.

 

4.4.2                   In case Via Varejo and Nova OpCo do not reach agreement in the weekly discussions pursuant to Section 4.4.1, Via Varejo shall monthly prepare and send to Nova OpCo, a list containing Differentiated Protection Items. For purposes of this Agreement, “Differentiated Protection Items” consist of the most selling items in Via Varejo’s physical stores, which represent 80% of the sales revenue during the months immediately preceding the preparation of the list.

 

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4.5                            Pricing policy of E-Commerce of the Brands

 

4.5.1                   With respect to E-Commerce of the Brands, Nova OpCo undertakes, to offer the same cash price and payment conditions of Via Varejo on all Differentiated Protection Items, not offering for sale on E-Commerce of the Brands for a lower price than advertised in the Relevant Media by Via Varejo, provided that Nova OpCo may offer the possibility of payment in up to 10 installments with no interest on the E-Commerce. Nova OpCo may offer to its clients all forms of payment and shipping usually available on E-Commerce.

 

4.5.2                   The prices of items not considered Differentiated Protection Items shall be freely determined by Nova OpCo on the E-Commerce of the Brands.

 

4.6                            Remuneration. For the purchases made by Nova OpCo or CBD from the suppliers of Via Varejo in accordance with the provisions set forth in Sections 4.1 and 4.2, with due regard to the Section 4.3, Nova OpCo and CBD shall pay to Via Varejo a remuneration fee, equivalent of 1.3% and 2.2%, respectively, of the total value (free of taxes levied on such purchases) items effectively purchased from such suppliers as such total value is further defined in 4.6.1 and 4.6.2 below.

 

4.6.1                   The remuneration fee set forth in Section 4.6 above shall apply to the total value of purchases of (a) Common Items pursuant to Section 4.1; and (b) non Common Items, but purchased from the suppliers of the Common Items pursuant to Section 4.2.

 

4.6.2                   The remuneration fee set forth in Section 4.6 above shall not apply to bonuses, rebates, VPC and other discounts. Any gains registered by Via Varejo on such discounts shall be split pro rata in accordance with criteria usually used by the Parties for such purpose.

 

4.6.3                   The remuneration fee set forth in Section 4.6 above shall be valid on purchases made during the period beginning on October 17, 2013 and ending five (5) years from the date hereof, subject to possibility of revision in good faith by the Parties of the commercial parameters at the end of the third (3rd) year from the date hereof.

 

4.6.4                   The calculation and the payment of the remuneration shall be respectively performed and due quarterly, with accounting recognition on the last day of the quarter, and Nova OpCo and CBD shall make the payment to Via Varejo on the fifth (5th) business day after the end of the quarter. The payment shall be made in cash on the bank account to be informed in writing by Via Varejo to Nova OpCo and CBD or in any other form agreed among the Parties.

 

4.6.5                   Each Party shall be responsible for the payment of any taxes due as a result of this Operational Agreement in accordance with the tax laws at the time of the taxable events. In case a Party is responsible to withhold any taxes due, the Party shall proceed with the withholding in the form and within the period specified in the applicable law.

 

4.6.6                   Due to the E-Commerce Restructuring, NPC shall bear the remuneration relating its purchases made between October 17, 2013 and July 13, 2014 and Nova

 

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OpCo shall bear the remuneration relating to its purchases from July 14, 2014 onwards.

 

5                                      LOGISTIC ASPECTS

 

5.1                            Storage

 

5.1.1                   The Parties shall analyze, in view of economical and operational aspects, the sharing of areas of their respective distribution centers, seeking, whenever possible and advantageous, the segmentation of operations, optimizing processes and costs, with proper rational sharing of costs and expenses directly and indirectly incurred in maintaining the shared distribution centers.

 

5.1.2                   The Parties shall jointly conduct the planning of future need for storage areas and study the best way to enable them.

 

5.2                            Transportation

 

5.2.1                   The Parties shall work together towards standardizing and sharing of the price tables and service level of the carriers, respecting the specificity of the business. The Parties shall jointly develop internal processes to ensure that the price tables of the Parties are always updated in the sharing system.

 

5.2.2                   The Parties shall evaluate, in view of economical and operational aspects, the sharing of transfer loads and loads for home delivery, in order to derive mutual benefit of scale gains. Whenever possible and advantageous, the Parties shall seek the segmentation of operations, optimizing processes and costs

 

5.2.3                   The Parties shall proceed with due rational sharing of costs and expenses directly or indirectly incurred in the transportation referred to in Section 5.2.2.

 

5.3                            Supply

 

5.3.1                   The Parties shall develop together a control system that allows Via Varejo access schedule, supply and delivery information of items purchased by CBD and Nova OpCo in accordance with the provisions set forth in Sections 4.1 and 4.2.

 

5.3.2                   Any issues with the sales turnover of items purchased pursuant to Sections 4.1 and 4.2 for sale on the E-Commerce of the Brands or in Extra Stores shall be addressed with the corresponding supplier by Nova OpCo or CBD, as applicable, jointly with Via Varejo.

 

6                                      COMMUNICATION AND MARKETING ASPECTS

 

6.1                            Right to use the Brands

 

6.1.1                   The strategy and positioning of the respective Brands shall be determined by Via Varejo and CBD. Nova OpCo shall use the Brands in the E-Commerce in accordance with the rules and concepts specifically designed for the E-Commerce of each Brand, pursuant to this Agreement and the respective Trademark License Agreements. Nova OpCo agrees to adhere to the strategy and positioning of the respective Brands as determined by Via Varejo and CBD in accordance with the terms of this Section 6.1.1.

 

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6.1.2                   Nova OpCo shall inform Via Varejo of its desire to operate in product categories other than electronic goods and furniture, using the brands owned by Via Varejo on the E-Commerce. Via Varejo shall notify Nova OpCo of any objection within not more than thirty (30) consecutive days as from the receipt of the information from Nova OpCo. In case there is no objection, only after such period has elapsed may Nova OpCo work in such category.

 

6.2                            Abstaining from haring measure and unfavorable publicity. During the term of this Agreement, and following its termination, each Party agrees directly or indirectly not to take any measure for the purpose of jeopardizing or that may reasonably jeopardize the other Party or its reputation or that may culminate in unfavorable publicity to the other Party.

 

6.3                            Domain and URL. Via Varejo and CBD are prohibited from using domains and URLs for purposes of E-Commerce of the Brands. In all cases, only one domain name shall be used for each Brand, which should always be “www.brand.com.br”. In any particular destination on the internet, the URL must follow the standard “www.brand.com.br/specificdestination”. The domain names and URL shall be used in accordance with the Letter of Authorization of Domain Name Use.

 

6.4                            Marketing of the Brands. The Parties shall meet, fortnightly or whenever necessary, to align on a continuous basis the communication strategy and the marketing of Brands, ensuring the same visual and expression unit of each Brand, preparing a schedule for implementation of joint initiatives and the recovery of additional costs incurred by Via Varejo and CBD, as applicable.

 

6.4.1                   Marketing in the Media. The Parties agree to implement the following initiatives:

 

(i)                                  Via Varejo and CBD must reserve at least five percent (5%) of the space of announcements in print media of the respective Brands for content specified and defined by Nova OpCo for the E-Commerce of the same Brand.

 

(ii)                               Via Varejo and CBD must include as a destination link of all online announcements of their Bands, the URL of E-Commerce of the same Brand.

 

(iii)                            Via Varejo and CBD must include in all television announcements of their Brands, whether in open channel or cable, for at least five (5) seconds, the URL and telesales contact of the E-Commerce of the same Brand. The screen space destined to references to the E-Commerce can not be smaller than the size of the character generator. Additionally, all such television ads should end with the spoken or written message “Go to www.marca.com.br” or “ join us at fb.com/brand” or “download the app of the brand”.

 

(iv)                           Via Varejo and CBD must include, in all radio announcements of their respective Brands, the following spoken message at the end of the add: “go to www.brand.com.br”.

 

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(v)                              Except otherwise limited by law, Via Varejo and CBD must include in all outdoor announcements (including billboards, private truck sides, door shops) of the respective Brands the URL and telesales contact of the E-Commerce of the same Brand.

 

6.4.2                   Marketing in the stores. The Parties agree to implement the following initiatives:

 

(i)                                  on the façade, include the URL and telesales contact of the E-Commerce of the same Brand. In addition, inclusion of messages such as “More products at www.brand.com.br”, as specified and defined by Nova OpCo;

 

(ii)                               on physical storefronts when closed, include the main message of “Open 24 hours at www.brand.com.br “ ;

 

(iii)                            on the exit vision of physical store, include the message “Continue shopping at www.brand.com.br”;

 

(iv)                           on the screen of the cash registers, include the message “More products at www.brand.com.br”;

 

(v)                              on bags and other packing containers, include the URL and telesales contact of the E-Commerce the same Brand;

 

(vi)                           on at least one side of all of private trucks of the Brands, include the URL and telesales contact of the E-Commerce of the same Brand;

 

(vii)                        on the invoices, include the URL and telesales contact of the E-Commerce of the same Brand and also the message “Continue shopping at www.brand.com.br”;

 

(viii)                     in all the catalogs, include the URL and telesales contact of the E-Commerce of the same Brand on all pages. Additionally , all catalogs should include at least one (1) page with products that do not exist in the physical store of the Brand that can be found in the respective E-Commerce.

 

6.4.3                   Costs. Except for the initiatives set forth in items (i) to (v)(iv) of Section 6.4.1, for the initiatives set forth in Sections 6.4.1 or 6.4.2 that result in structural changes and costs for Via Varejo or CBD, Via Varejo or CBD, as applicable, shall inform Nova OpCo about such costs (as reasonably estimated by Via Varejo or CBD, as applicable) and Nova OpCo at its own discretion shall decide whether the initiative shall be implemented. If Nova OpCo decides to implement the initiative, the costs informed by Via Varejo or CBD, as applicable, shall be borne directly by Nova OpCo.

 

7                                      MULTI-CHANNEL ASPECTS

 

7.1                            The Parties shall meet, fortnightly or whenever necessary, to align on a continuous basis the multi-channel strategy between the E-Commerce of the Brands and the physical stores of the same Brand, preparing a schedule for implementation of joint initiatives and the recovery of additional costs incurred by the Parties, as applicable.

 

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7.2                            Via Varejo and CBD shall seek to viable the multi-channel of the E-Commerce of the Brands, enabling (i) customers who purchase via E-Commerce of the Brand to withdraw the products at the nearest physical store of the respective Brand, or, alternatively (ii) for Nova OpCo to perform the home delivery the products to the E-Commerce clients, withdrawing such products from the storage of the physical store of the respective Brand.

 

7.3                            Via Varejo and CBD shall share with Nova OpCo the structure and the returning process of products, in order to allow customers who purchase via E-Commerce of the Brands to exchange or refund, at the customer’s choice, in any physical store of the same Brand.

 

7.4                            Via Varejo and CBD shall instruct their staff to pursue sales, inside the store, of items unavailable in the physical stores through the E-Commerce of the respective Brand. Via Varejo, CBD and the staff of the physical stores of the respective Brand shall be commissioned in accordance with policy to be established by the Parties for the items sold in the form of this Section 7.4.

 

7.4.1                   The objective of this Section 7.4 is to expand the variety of products available to the customers of Via Varejo and CBD. However, there shall be no cannibalization between the physical stores and the E-Commerce of the Brands in relation to the products made available by Via Varejo and CBD.

 

7.5                            Post Sales

 

7.5.1                   The Parties shall centralize, in view of economical and operational aspects, the structures used in the technical assistance and reconditioning of process of products sold by the Brands, either in physical stores of Brands or on the E-Commerce.

 

7.5.2                   Via Varejo shall share and allow the utilization by Nova OpCo of its installed capacity for assemblage and technical assistance of furniture to be sold on the E-Commerce.

 

7.5.3                   The Parties shall be deemed liable for the costs arising from customer’s claims, whether on administrative or judicial jurisdiction.

 

7.6                            Cost and Expenses. Via Varejo and Nova OpCo and CBD and Nova OpCo, as applicable, shall proceed with an appropriate rational sharing of the operating costs and expenses incurred, directly or indirectly, in implementing the aspects of multi-channel in relation to the respective Brands, pursuant to Section 7.

 

8                                      ACCESS TO INFORMATION

 

8.1                            Nova OpCo is entitled, but not required, to monitor any and all activity or content related to or released in connection with the E-Commerce of the Brands. Nova OpCo is further entitled to investigate any violation or policies or claims that may be reported to it.

 

8.2                            Via Varejo and CBD are entitled, but not required, to monitor any and all activity or content related to or released in connection with the E-Commerce of the Brands. Via Varejo and CBD are further entitled to investigate any violation or policies or claims that may be reported to them on E-Commerce of the respective Brands.

 

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8.3                            The Parties agree to cooperate in good faith in the course of any investigation conducted according to the provisions hereof, and shall promptly allow the entrance and access of the Party and its representatives to all the facilities and to promptly provide copies of any documents and information to the Party and to its representatives as requested.

 

9                                      PRIVATE LABELS

 

9.1                            Nova OpCo and Cnova may operate the e-commerce activities of any private labels and/or brands or no names, whether developed and owned by the Parties or their Affiliates or otherwise, without the need of request for permission to any of the other Parties, provided that Nova OpCo or Cnova, as applicable, shall observe the strategy and positioning of the respective private labels and/or brands as determined by the owner of the private label and/or the brand in the e-commerce in the event that such owner is one of CBD or Via Varejo or an Affiliate controlled by one of them.

 

10                               EXCLUSIVITY AND NON-COMPETE

 

10.1                     Exclusivity

 

10.1.1            Via Varejo and CBD forthwith acknowledge and agree that they shall operate any and all activities related to the E-Commerce of the Brands in Brazil exclusively through Nova OpCo. Via Varejo and CBD also agree that, for the term of this Agreement, they may not use any third parties for activities of E-Commerce in Brazil or to provide any services in connection with or similar to the E-Commerce of any brands.

 

10.1.2            The Parties agree that the obligation of exclusivity hereby undertaken by Via Varejo and CBD applies to the E-Commerce transactions of Via Varejo and CBD in Brazil, including any brand or domain that may be held or used by Via Varejo and/or CBD in Brazil, acting directly or by means of any controlled company, during the term of this Agreement.

 

10.1.3            Should during the term of this Agreement Via Varejo and/or CBD develop any other brands or domains for the activities of E-commerce in Brazil, Via Varejo or CBD, as applicable, shall inform Nova OpCo and Cnova for them to decide at their sole discretion about the inclusion of the new brand or domain, as the case may be, on the E-Commerce. If Nova OpCo and Cnova decide to include a new brand or domain, the Parties shall enter into an amendment to this Agreement to include the mentioned brand and domain, and shall adjust in good faith the terms and conditions of this Agreement that may be so required, as well as any other agreement that may be necessary, including the Trademark License Agreements.

 

10.1.4            The Parties agree that Nova OpCo shall operate the E-Commerce on a non-exclusive basis to Via Varejo and CBD, which means that Nova OpCo can be hired to provide e-commerce activities to third parties.

 

10.1.5            The violation of the obligations of exclusivity established herein by Via Varejo or CBD shall submit Via Varejo or CBD, as applicable, in addition to damages and other remedies, to the payment of a pecuniary and non-compensatory fine for

 

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violation in the amount of fifty million reais (R$50.000.000,00). Such fine shall be paid within a period of ten (ten) days after a violation occurs.

 

10.2                     Non-Compete. Via Varejo and CBD agree, during the term of this Agreement, to abstain from purchasing, directly or through any of its Affiliates, any equity interest in any legal entity that, on the date of such acquisition, operates:

 

(i)                                   exclusively E-Commerce in Brazil;

 

(ii)                                directly or through any of its Affiliates, among other activities, E-Commerce in Brazil, provided that the Parties undertake to discuss in good faith the potential acquisition.

 

11                              REPRESENTATIONS AND WARRANTIES

 

11.1                     The Parties represent and warrant each other, which they declare as being true, accurate, complete and updated:

 

11.1.1            Capacity. Each of the Parties fully understand the operations object of this Agreement and possess full capacity, discernment, powers and were properly advised by qualified professionals to execute this Agreement, as well as to consummate and implement the operations contemplated herein.

 

11.1.2            Authorization. The Parties possess all the corporate authorizations necessary to execute this Agreement and to fulfill with the obligations established herein. The Parties possess full powers to execute and formalize any contract, instrument, or document to be entered into as a result of this Agreement in view of the consummation of the operations contemplated herein and the fulfillment of their corresponding obligations.

 

11.1.3            Absence of Conflicts and Violations. The execution of this Agreement and the fulfillment of the obligations assumed herein:

 

(i)                                  shall not violate any provision of the corporate documents of the Parties; and

 

(ii)                               shall not violate nor conflict with any law applicable to the Parties.

 

11.1.4            Validity and Enforceability of the Agreement. This Agreement constitutes a valid legal and binding obligation to each of the Parties and enforceable against them in accordance with the terms hereof.

 

12                               INDEMNIFICATION AND LIABILITY

 

12.1                     Obligation to Indemnify. Each Party (an “Indemnifying Party”) undertakes to indemnify and hold harmless each other (each of them, an “Indemnified Party”), solely in relation to any Losses arising from:

 

(i)                                   violation or inaccuracy of any of the representations or warranties provided by each of the Parties in Section 11 of this Agreement;

 

(ii)                                breach of any obligation assumed by each of the Parties in this Agreement.

 

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12.2                     Liability

 

12.2.1            Each Party shall be liable and shall defend, indemnify and hold the economic group of the other Party harmless, and shall position/defend itself against any and all Claims that may arise or in any way are related, directly or indirectly, to the failure by the economic group of the Indemnifying Party to obey and fully comply with all the laws applicable to the performance of its respective obligations under the terms of this Agreement.

 

12.2.2            If any Party becomes aware of any incident likely to give rise to a Claim, which may result in the indemnifications provided for in Sections 12.1 to 12.2, such Party shall immediately notify in writing the other Party and both Parties shall cooperate and work together to investigate the incident immediately and mitigate any liability resulting thereof.

 

12.2.3            Notwithstanding any contrary provision contained in the present Agreement, each Party shall assume full liability, without limitation, for its own Negligence or Willful Misconduct.

 

12.2.4            The provisions of this Section 11.1 shall continue in force regardless the termination of this Agreement.

 

13                               TERMINATION AND PENALTIES

 

13.1                     This Agreement may be terminated by either Party, for good cause, upon the occurrence of the following events:

 

13.1.1            In the event of contractual default, at the sole discretion of the non-defaulting Party, upon failure by the defaulting Party to comply with its obligation within thirty (30) days following the receipt of notice from the non-defaulting Party, being the defaulting Party subject to payment of damages and the contractual penalty provided in Section 13.3 below.

 

13.1.2            Insolvency, judicial or extrajudicial reorganization, bankruptcy, dissolution or winding-up of any Party, in which event this Agreement shall be deemed to have been automatically terminated, irrespective of notice.

 

13.2                     Except for the events provided for in Section 13.1 above, the Agreement may only be terminated by a written instrument duly signed by the Parties by mutual agreement.

 

13.3                    The Parties agree that (i) any material breach of the rights and obligations of each Party provided in this Agreement or (ii) the termination of this Agreement before the end of the term provided for in Section 2.3 and in accordance with the Section 13.1, shall, without prejudice to damages and any other rights or remedies that may be available, subject the Party causing the early termination or giving rise to the breach, including the anticipated termination of any successive renewals, as the case may be, to a punitive and non-compensatory penalty in the amount of fifty million reais (R$50.000.000,00).

 

13.3.1            For the avoidance of doubt, any termination of this Agreement being fully agreed among the Parties, whether anticipated or not, shall not subject any Party, in any event, to the punitive and non-compensatory penalty aforementioned.

 

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14                               CONFIDENTIALITY

 

14.1                     For the purposes of this Agreement, Confidential Information shall mean:

 

(a)                               any information relating to this Agreement, the platform and the E-Commerce of the Brands, including, but not limited to, agreements of any kind, technical information, flows, organizational structures, procedures, expertise, know-how, as well as any other information disclosed by one Party (the “Disclosing Party”) and/or its respective representatives or advisors (“Representatives”) or any of its Affiliates.

 

(b)                               any non-public, confidential, proprietary or patentable information relating to the Disclosing Party, its Affiliates, any shareholder, employee or customer of the Disclosing Party, that have been obtained by the other Party (the “Receiving Party”) or by its Representatives, either in writing or verbally, through the Disclosing Party or as a result of contacts with the management or with its Representatives or Affiliates;

 

(c)                                analysis, compilations, studies or other documents prepared by the Receiving Party or its Representatives, which contain or otherwise reflect or are generated using such information; and

 

(d)                               understandings, verbal or written agreements, amounts, negotiations, interested parties, procedures, economic and legal concepts and strategies discussed, evaluated, rejected or preferred by the interested parties relating to the purpose hereof;

 

14.2                    Confidential Information shall not include any information which the Receiving Party can demonstrate that:

 

(a)                               it is or becomes available to the public for reasons other than the disclosure by the Receiving Party or its Representatives;

 

(b)                               is already, at the time of disclosure, known by the Receiving Party and was not disclosed by the Disclosing Party, its Representatives or Affiliates or obtained by the Receiving Party as a result of this Agreement or by violation of any laws or obligations to which the Receiving Party is or may become subject; or

 

(c)                                the disclosure is required by an arbitral or judicial order which has become final and non-appealable, to which the Disclosing Party is subject (and, in such event, only upon written notice with no later than two business days in advance).

 

15                               USE OF CONFIDENTIAL INFORMATION

 

15.1                     The Receiving Party agrees to maintain in strict secrecy the Confidential Information, and shall not disclose it to third parties or use it other than for purposes hereof.

 

(i)                                  The provisions of Section 15 above shall not prevent the Receiving Party from disclosing Confidential Information to (i) its Representatives having a need to know the Confidential Information solely for the performance of this Agreement, (ii) its Affiliates.

 

(ii)                               The Receiving Party agrees to take all necessary measures to protect the Confidential Information when disclosing them to its Representatives.

 

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(iii)                            The Receiving Party shall be jointly and severally liable with its Representatives and Affiliates, without benefit of order, for all acts or omissions of their Representatives or Affiliates regarding the Confidential Information.

 

15.2                     If required by the Disclosing Party, the Receiving Party agrees to return or destroy, within 5 business days from the termination of this Agreement, any and all material provided by the Disclosing Party or produced by the Receiving Party or any of its Representatives or Affiliates containing any kind of Confidential Information.

 

15.3                    Disclosure of Confidential Information. If a Receiving Party, or any of its Representatives or Affiliates is obliged by law, by regulation, or applicable stock market rule or by request of any government authorities to disclose part or all of the Confidential Information, such Receiving Party or its Representative or Affiliate as the case may be shall be authorized to disclose said Confidential Information, provided that it promptly notifies the Disclosing Party, with enough time to allow the latter to perform any measures or appeals that may be appropriate. The Receiving Party or its Representative or Affiliate will reveal only such information as required, and shall exert every best effort to obtain confidential treatment for any Confidential Information that is so revealed.

 

16                               SEVERABILITY OF THE PARTIES

 

16.1                     The Parties shall not maintain any employment relation with employees, managers and/or agents of the other, and no form of association, cooperation or partnership relation shall be established between them (except those already existing by virtue of any instruments other than this Agreement) and, therefore, each one of them shall be, especially and exclusively, liable for the fulfillment of its respective labor, social and security obligations under the legislation in force.

 

16.2                     Each Party shall be liable for the fulfillment of its respective obligations and liabilities undertaken herein, and each of them shall be individually and exclusively liable for complying with the rules applicable to them under the legislation in force, hereby exempting the other Party from any liability for non-compliance with any rule applicable to the activities subject matter of this Agreement.

 

17                               NOTICES

 

17.1                     Notices and invoices shall only be deemed as duly delivered or sent, if delivered in person, sent by registered mail or fax, to the addresses below:

 

If to CBD:

 

Avenida Brigadeiro Luiz Antonio, 3142

01423-000, São Paulo — SP 

Attn.: Chief Executive Officer

Fax: +55 11 3884-6700

 

If to Via Varejo:

 

Rua João Pessoa, 83

09520-010, São Caetano do Sul — SP 

 

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Attn.: Chief Executive Officer

Fax: +55 11 4225-9905

 

If to Nova OpCo:

 

Rua Gomes de Carvalho, 1.609/1617, 7 floor

04547-0000, São Paulo - SP

Attn.: Chief Executive Officer

Fax.: (11) 4949-8180

 

If to Cnova:

 

Professor Dr Dorgelolaan 30D, 5613 AM Eindhoven

Amsterdam, Netherlands

Attn.: General Counsel

 

If to NPC:

 

Rua Gomes de Carvalho, 1609/1617, 7th floor

04547-000, São Paulo — SP 

Attn.: Chief Executive Officer

Fax: +55 11 4949-8180

 

17.2                     Such notices delivered in accordance with Section 17.1 and made by:

 

17.2.1            Delivery in person shall be delivered during the normal business hours, on business days at the addressee’s head office, and shall be deemed to have been delivered at the time the notification is received;

 

17.2.2            Correspondence with return receipt request shall be deemed to have been delivered on the date indicated in the return receipt request, and

 

17.2.3            Any fax shall be transmitted during the normal business hours, on business days at the addressee’s head office, and shall be deemed to have been delivered at the time of written confirmation of complete and successful transmission of the fax.

 

17.3                     Any communication by phone or email shall, unless otherwise expressly permitted, be confirmed by one of the methods of delivery described in Section 16.2 above, and the delivery of such notice shall be made in accordance with Section 16.2, irrespective of prior communication by telephone or email.

 

18                              MISCELLANEOUS

 

18.1                     Territory. The provisions of this Agreement are only applicable to the Parties with regards to their operations in Brazil, except as expressly provided differently in this Agreement.

 

18.2                     Specific performance. The specific performance of any obligations contained herein may be required by the non-defaulting party or the creditor, as applicable, of such obligation pursuant to the Brazilian Code of Civil Procedure.

 

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18.3                     Entire agreement

 

18.3.1            Except as expressly provided for herein, this Agreement contains the entire agreement between the Parties regarding the subject matter hereof and supersedes any understandings, commitments, negotiations, agreements, contracts (executed or not) or representations, oral or written, prior to this document.

 

18.3.2            The Parties acknowledge that they are not executing this Agreement based on any warranty, representation, statement, agreement or commitment of any kind other than those expressly provided for herein. To the extent permitted by law, and except in cases of fraud, each Party agrees and acknowledges that their sole rights and remedies in respect of any representation, warranty or commitment made or given herein shall only apply in case of breach of the terms and conditions provided for herein, to the exclusion of all other rights and remedies.

 

18.4                     Exclusion of invalid provisions. If any of the provisions of this Agreement, or any part thereof, is annulled, declared illegal or deemed invalid or unenforceable for any reason, the validity and enforceability of the remaining provisions shall not be affected or impaired in connection with any of the Parties. In case of any illegality, invalidity or ineffectiveness, the Parties agree to discuss in good faith the relevant amendments hereto in order to reinstate this Agreement and preserve and give effect to the original intent of the parties.

 

18.5                     Failure to agree.  With respect to any obligation under the present Agreement requiring one or more Parties to negotiate any point that is not defined by the present Agreement, in the event that the Parties fail for whatever reason to reach an agreement as a result of such negotiation (including by a breach of such obligation to negotiate in good faith) and without prejudice to any other rights or remedies available to the Parties, such failure shall under no circumstances result in the termination or invalidity of any other provision of this Agreement.

 

18.6                    Waiver and amendment

 

18.6.1            No waiver of any right to any of the parties arising out of this Agreement shall be effective if it is not expressly written.

 

18.6.2            Failure of either Party to exercise any right it may have herein or in the applicable law or failure to apply any possible measure, penalty or sanction shall not operate as a waiver or novation, and shall not, therefore, be construed as a desistance of their application in case of recurrence. No waiver, termination or discharge of this Agreement or any of the terms or provisions hereof shall be binding on any of the Parties, unless confirmed in writing. No waiver by either Party of any term or provision hereof or any default hereunder shall affect the rights of said party to enforce thereafter such term or provision or to exercise any legal right or remedy in the event of any other default, whether similar or not.

 

18.6.3            This Agreement may not be changed or amended except in writing and executed by all Parties.

 

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18.7                     Further assurances. Each of the Parties shall use its reasonable efforts to: (i) ensure that any third party performs such other acts and execute and deliver such other documents as required to comply with the provisions hereof; and (ii) ensure that the other Party may require from any third parties all such acts and measures as required to the compliance with this Agreement.

 

18.8                     Independent contractors. Nothing herein shall create or be construed as creating a partnership or an association of any kind or as an obligation to any Party of any duty, obligation or liability as to a partnership, joint venture, agency, fiduciary relationship, membership, or any other business entity recognized by law for any purpose. Rights, benefits, liabilities and obligations of the Parties hereunder shall be joint and not several.

 

18.9                     Assignment

 

18.9.1           Neither Party may assign this Agreement or the rights and obligations arising out of this Agreement, wholly or in part, without the express prior written consent of the other Party.

 

18.9.2            Notwithstanding the provisions of Section 18.9.1 above, the parties acknowledge and agree that in the event of any corporate reorganization involving any of the Parties, all surviving companies succeeding the applicable Party wholly or in part (regardless of new or existing ones) fully undertake and are subject to all rights and obligations of the applicable as provided for herein.

 

18.10              Irrevocability and irreversibility. This Agreement is irrevocably and irreversibly executed by the Parties, binding upon the Parties, their heirs and successors and permitted assigns in any way.

 

18.11              Anti-corruption legislation.. Each Party represent that it and its subsidiaries have not, nor, to the knowledge of each such Party, have the directors, officers, agents, employees or controlled Affiliates of such Party and its subsidiaries, performed any act or omission, directly or indirectly, that would result in a violation by such persons of (a) the obligations of Brazilian Federal Law No. 12,846 of August 1, 2013, (b) the FCPA, including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA or (c) any other similar law of any other jurisdiction in which such Party and its subsidiaries operates its business.

 

19                               APPLICABLE LAW AND ARBITRATION

 

19.1                     Applicable law. This Agreement shall be governed and construed pursuant to the laws of the Federative Republic of Brazil.

 

19.2                     Amicable settlement. Any dispute arising from or related to this Agreement shall be notified in writing by one party to the other(s), and the parties shall use their best efforts to settle the dispute on an amicable basis within fifteen (15) days from the date of receipt of the notification.

 

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19.3                     Arbitration. If an agreement cannot be reached pursuant to Section 19.2 above, any dispute arising out of or in connection with the present Agreement, including without limitation, the validity, interpretation, compliance, implementation, termination or breach of this Agreement shall be submitted to arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC Rules”) prevailing as at the date of the request for such arbitration.

 

19.4                    Arbitral tribunal. The arbitral tribunal shall consist of three (3) arbitrators, of whom one shall be nominated by claimant(s) and one shall be nominated by respondent(s). The third arbitrator acting as president of the arbitral tribunal shall be nominated jointly by the two party-appointed arbitrators within 15 (fifteen) days from the confirmation of the second arbitrator, failing which the ICC shall appoint the president of the arbitral tribunal pursuant to the ICC Rules.

 

19.5                     Language. The language of the arbitration shall be English. Any of the parties to the arbitration may submit evidence in any other language provided that it is accompanied by a translation into English.

 

19.6                     Jurisdiction. The decision of the arbitral tribunal shall be final and binding upon the parties and may be enforced in any court of competent jurisdiction. Each party retains the right to seek judicial assistance notably (a) to compel arbitration; (b) to obtain interim measures of protection rights prior to instruction of pending arbitration and any such action shall not be construed as a waiver of the arbitration proceeding by the party; or (c) to enforce any decision of the arbitrators including the final award. If a party seeks judicial assistance, the Courts of São Paulo, Brazil, shall have jurisdiction.

 

19.7                     Consolidation of proceedings. Arbitration proceedings might be consolidated as agreed by the parties or determined by the ICC pursuant to the ICC Rules.

 

19.8                     Confidentiality of arbitration. The Parties and the intervening-consenting party expressly agree that the arbitration shall be kept strictly confidential, along with the information thereon (including without any limitations, the allegations made by the parties thereto, evidence, technical reports and any other statements given by third parties along with any documentation submitted or exchanged in the course of the arbitration proceedings), which shall only be revealed to the arbitral tribunal, the ICC, the parties, their attorneys, and any person essential to the development of the arbitration proceedings, except if such disclosure is required so as to satisfy obligations set out by law or by any competent authorities.

 

IN WITNESS WHEREOF, the Parties hereby execute this Agreement in five (5) counterparts of equal form and content together with two (2) witnesses.

 

 

São Paulo, July 24, 2014.

 

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COMPANHIA BRASILEIRA DE   DISTRIBUIÇÃO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christophe Hidalgo
    	
 
    	
/s/ Antonio Salvador
    
	
Name: Christophe Hidalgo
    	
 
    	
Name: Antonio Salvador
    
	
Title: Chief Financial Officer
    	
 
    	
Title: Director of Human Resources
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VIA VAREJO S.A.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Francisco Valim
    	
 
    	
/s/ Victor Fagá de Almeida
    
	
Name: Francisco Valim
    	
 
    	
Name: Victor Fagá de Almeida
    
	
Title: President
    	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CNOVA COMÉRCIO ELETRÔNICO S.A.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Fernando Queiroz Tracanella
    	
 
    	
/s/ Oderi Gerin Leite
    
	
Name: Fernando Queiroz Tracanella
    	
 
    	
Name: Oderi Gerin Leite
    
	
Title: Chief Financial Officer
    	
 
    	
Title: Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CNOVA N.V.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ German Quiroga
    	
 
    	
 
    
	
Name: German Quiroga
    	
 
    	
 
    
	
Title: President
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Intervening Parties
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
NOVA PONTOCOM COMÉRCIO   ELETRÔNICO S.A.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Fernando Queiroz Tracanella
    	
 
    	
/s/ Oderi Gerin Leite
    
	
Name: Fernando Queiroz Tracanella
    	
 
    	
Name: Oderi Gerin Leite
    
	
Title: Chief Financial Officer
    	
 
    	
Title: Chief Operating Officer
    

 

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Witnesses:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
1.
    	
/s/ Vânia Regina de Souza
    	
 
    	
2.
    	
/s/ Ana Medeiros Akagui
    
	
 
    	
Name: Vânia Regina de Souza
    	
 
    	
 
    	
Name: Ana Medeiros Akagui
    
	
 
    	
Id. R.G. No.: 13.488.814-5 — SSP
    	
 
    	
 
    	
Id. R.G. No.:6.056.709.0
    

 

24

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