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From:
Laurent
Adamowicz
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Td: 33-1 452Z-8513
Fax: (33+1 ) 45
22-79
76
Mons ieu r Hen r i Fi iho
Clinvcst
5 5
bou levard
Hanssmann
75008
Par is
Paris , lc 1 févr icr 1993
Che r
Mons i e u r ,
Ie
vous pr ie
d e
t rouver ci-joint,
o o m m c
c o n v e n u ,
la
version
e n
Anglais
d e
la
convent ion
d e
prét
au x i n v e s t i s s e u r s anotécde nos c o m m e n m i r c s .
Par a i l l e u r s , vous t rouvcrez
ci- joint 1 m Executive S u m m a r y r é s u m a n x ,
it
Pattenfion
d c s
in v e s t is s e u r s , le s
difiérents
paramétrcs
d c la
t r a n s a c t i o n .
Enfin ,
je
vous
re me rcie dc
m e
communique : d é s
q u e
p o s s i b l e ,
le m o ntan t d c s
p r i m e s
1 8 S S U 1 3 - D C C
d e 1 e n s cm b 1 e du
Groupe
a .
I‘ai
communiqué
au x
i n v e a t i s s e u r s ,
c o m m e
c o n v e n u ,
la
possibiltté
pou r
au x
dc perccvoir une
commiss ion dengagemen t
dc
0 , 5 fla t
e n l ieu
et p l a c e
d c la
commiss ion a n n u e l l e
d c
0 , 3 0
.
Ie vous
remcrcie d e vot re c o n fi a n c e , ct
vous
prie d ‘ a g r é c r , Mons ieu r , 1 e x p re s s io n d e m e s
c e r i u m ’e m s
d 1 s u n
g u é s .
_
Lau ren tAdamowicz
Sociéaé A n o n ym e
n u
Capital
dc
400 .000 Frans:
S i e g e
s o c i a l : 2 . , ru e d c la Baum: 7 5 0 0 8 Par is,
France
arm -1 RC5
I P8715
B388
950 26
-I
~ - a n
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W 0 1 » .
I
_Z_-Z-——-1-1-i‘¢ 0
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Limited
Recourse Loan Facility Agreement
da
h is agreement is
made
the y
ofFcbruary One thousand
nine hundred an
three
BETWEN
1 - CreditLyonnais, a
société
anonyme
with
a
s h a r e capiu l
of
Frf7.075.260.720
whose registered ofi ice is at, 1 8 rue de
la Républiquc
Lyon (Rhéne), and whose
head o ffice is at 1 9 boulevard d e s
Italians
Paris
Z e m e registered on
the
r e g i s u - e
du commerce ct
des
o fLyon under n°
B
954
509
741,
represented by
hereinafuzr called C red it Lyo rma is “ o r “the Bank
of the firs t par t
2 - and
____i___
a company
i
represented by
hereinafter
called the Bor rower”
o f t h e s e c o n d
pan
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W H E R E A S
t h e
B a n k h a s
a g r e e d
to
m a k e a v a ila b le to th e B o r ro we r
a
loan faci l i ty
in
th e
pr inc ipa l a m o u n t off;E _1:_3_ u po n th e te rm s c o n ta i ne d in
t h is
ag r e e me n t .
N O W
IT I S
H E R E B Y
A G R E E D
a s
fo l lows:
I
A m o u n t
o f th e
l oan ,
Purpose.
Cred i t
Lyom ta i s
a n d
th e
bor rower
en te r
into a n
a g r e e m e n t
re l a ti ng to
a loan
o f
a n
a m o u n t ofFrf , o n
t h e
t e r ms a n d
subject
to th e condi t ions here inaf te r
I lei
con ta ined .
to fi na nce th e a uis i t ion b
th e
B o r ro we r
of
h is
l oan s
exc lus ive ly c q y
s h a r e s represent ing % of
Adidas
Internat ional Ho ld ing
G m b h
s h a r e capital
( h e r e in a f te r c a l le d ; t h e
Sha r e s )
Il
D i sb u r se m e n t s - U se
o f
funds
F u n ds s h all
b e avai lab le
subject
to condi t ion
p r e c e d e n t ,
m ent i oned in art icle
XIV
herc inafie r , be ing
ful ly
compl ied
wi th .
Aga ins t compl iance ofw h a t is a b o ve wr i r e n , mon i es l en t shal l _ b e ava i lab l e to th e
B o r r o w e r in o n e i n i t i a l p a y m e n t
o n
l S acccnmt n ° ‘ w l t h
Entr ies
related to
th e u s e a n d l€m lof
fu nd s s h a ll b e
in a s p e c i a l
accotmt
opened
in th e n am e
of
th e
B o r ro we r
in
T M
b 0 0 1 < 5
Oi- ._____C{¢d1l
L Y 9 I l I 1 1 4 1 B 1 ‘ § T l ° 3 1 ,
exc lus ive ofa n y o th e r
account t h e
Bor rower
h a s
o r m a y h a v e wi th Credi t Lyonnats .
P a y m e n t o f funds will b e ev idenced b y t h e Bank’s e n n - l e s .
III
R e i m b u r s m e n t
Th e B o r ro we r s h a ll r e pa y Credi t Lyonnais of
th e
arnormt i n p ri n ci pa l in one paymen t
a t
U ,
th e
latest
on
th e 3]
D e c e m b e r
1 9 9 7 , sub ject
to t h e
provis ions ofart icle
VIII
hereinafter .
IV F i xe d in t e re s t s
4- l Interests
wi l l accrue
o n mon i es l en t
f rom
t h e
d a t e oft h e i r i n it ia l paym en t un t i l
the i r
effect ive
mmb daw
4-2 Interest
wi l l be ca lcu la ted o n
th e
b a s i s
oft h e actual n u m b e r of
days e l a p s
d
flute’
a
360-day year.
ulflgzs They will be ca lcula ted a t a fixed r a r e of 0,50% a n d
wi l l
b e paid o n a quater ly
‘7 °
I
at
b a s i s
in
a r r e a r s .
Interest
w fll
a c c r u e
fi 'om
day
to
day.4____________,___________
Wwqifiil 4 ~ 3 In accordance wi th w h a t is
m e n t i o n e d
h e ra b o v e , t he B o r r o w e r i r r e v o c a b l y
l
9 R F L] author izes Cred i t
Lyonnais
to deb i t a ll interest paymems , i nc iden ta l a n d
o ut
o f
i’ ’
-
cket e x ens
then d u e to Cred it Lyonna i s ,
a g a i n s t h is acootmt
n °
p v t » I
o p e n e d with
redi t
Lyonnais
Branch,
a n d
shal l main ta in
s u fi c i e n t
W b
. . . :
4
M
fl
2
M
‘iv
h it
mlllllfl
ad ’
8/20/2019 Le Fax d'Adamowicz
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l
w
s o
P
f u n d s in t h e a c c o u n t fi o r n t h e d a te w h e n t h e y
a re
d u e
fo r
p a y m w n
v m i l
‘Mir
definit ive
settlement.
V- Part ic ipat ion
clause
Supplem entary rem tmcra tion
O n to p ofth e fixed
interests
udefined in
§
4 -2 a b o v e , a supplementary
1-emunerat ion
will be
due
b y th e
Bo r r owe r
p ro v ided the
Bo r r owe r makes a
capital gain fi 0m the s a l e ofth e
S h a r e s
yacquired.
This supplementary rcm tmetat ion
wi l l b e calculated
according to
th e fo l lowing
f o rmu la :
PV-PA- 0 .2
x [PV_- PA+I ]
where :
PV
means
th e total
consideration
received by t h e Bor rower
o r
any
third Pm) ’ in
respect of the
s a l e
ofthe S h a r e s
PA
means
th e
total
consideration paid by
t h e
Bon-ower
fo r
the acquisition
o f the
Shares, which in t he p resen t
circums tances ts
equal to th e amoun t of th e loan.
I
m e a n s
a
compounded interest calcu lated on the
amount of
th e
s u m s
len t
a t year Fr f -Pibor a s published by
TELERATE .
(o r any
other
entity which
wil l
substitute
fo r it )
the work ing day preceding t h e day
of
th e
instalment,
a n d
thereaf ter the day of
the anniversary
d a t e of
th e
aforement ioned ins ta lm ent
a n d
for a
s ta r t ing fiom
th e
initial paym en t
date up to
th e
date of th e
re imburs rnent
of
th e principal
of t h e loan; interest accrued on a fu l l
year
wi l l b e
compounded in accordance with article
l
154 ofthc French
Civil Code .
Fu r t he rmo re
it
is a g r e e d that:
( i)
i
PV
minus
BA
r s
lower
t h a n
o r
equal
to
zero
(PV
- PA
5
0 ) ,
no
supplementary rernuncration wi l l
be paid;
(ii) i fPVrn inusPA
minus I
is lower t h a n
o r
equal to zero
PV
-
(PA +1 ) s 0), t h e supplementary
remunerat ion
wi l l
nevertheless
be
equal
to
PV - PA
C° ° °m -m8 9 1 ¢ FI fPibQf rate.
it
specified
that.
i by r e a s o n ofany applicable
treaty, law, r e g - u l a n o n o r
oficia l
directive
imposed on financial inst itutions, o r
lf a t any daw , a ¢ ¢ O 1 d r n g to Cred1 tLyonnais judgrnent , th e
behaviour
of t h e
rnterbank
market ,
o r
any event
did
no t allow
Credi t
Lyonnais to b e
able
to
calculate the Fri:-Pibor, C r e c u t
Lyonnais
s h a l l prom ptly g ive notice to t h e
Bor rower . Credi t Lyonnars a n d t h e Borrower shal l nego ciatc
with
a view to
agretng upon
a
substitute
b a s i s
fo r
th e determination
of
a n
appropriate rate
consrderng th e new
circumstances.
If
terms have no t b e e n a g re e d b e t w e e n
t h e part ies hereto,
the applicable
m e
shal l be th e o f fe r red rate proposed
to
Cred i t
L y o rm a is o n
th e i nte rbank m arket
fo r the
period
rmder
consideration, a s n e g o c i a t e d
a n d
a g r e e d between the part ies
8/20/2019 Le Fax d'Adamowicz
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I
Y
t
th e
working
day p r c c c d c i l g .
t h e
d a y of e a c h
anniversary date
of t h e
d igbmglnent
da te ,
plus a
marg i n
of '3 pe r
a rmum
. 4--_._
Th c
supp lementary
remunerat ion
calculated
in
th is mann er
wi l l b e payab le a t
th e da te of
th e
r e imbu r s emen t of th e pr inc ipa l of th e l oan .
5 -2 Sa le
of
th e
Sha res
b y
th e
Bor rowe r
Dur ing th e
l ife
of t h e p re sent l oan , t h e
Borrower
s h all b e ent i t led to p r o c e e d to
on l y
one
sa le ofthe
Shares
h e r e b y a cquir e d in a
who l e .
5 8 1 8 .
in tha t c a s e , sha l l m e a n
a ll
o p e r a t i o n or even t wh ich wi l l resu l t in
Adidas
h a g e c z t r s i a n o n a l - H o l d m g Gm b s h a r e s no t to b e pa rt an ymo r e of th e Borrower ’ ;
A 1 1 ) ’ iftiquire wi l l h a v e to b e a g r e e d , in a c c o r d a n c e
with
Ad idas lnte rna t iona l
Hvl iws G r a b
S
a r t i c l e s
of
a s s w a v o n ;
a
w r i t t e n
p r o o o f o f t h i s a g r e e m e n t w i l l
l l i l VC I0 ll fi S l l0 W l l b y th e
Borrower
to
t h e
Bank , b e fo re any s a l e could
t a k e
p l a c e .
5 - 3
S a l e
of
th e s h a r e s a t th e r e q u e s t o f t h e Bank
A t
any t ime , a s
long
a s t h e lo a n i s not
r e im bursed , t he Bank wi l l
b e
en t it led to
present to
th e
Bor rower
a th ird
party
i n t e r e s t e d b y
th e
acquisi t ion
o f
t h e S h a r e s
he r e b y acquir e d a s a whole .
1 1 t ha t c a s c ,
th e
Borrower
shal l s e ll t h e
S h a r e s to
th e
th i rd par ty
t hus r e fe r red
L___ 9 1 , . 3,; B g f 0 l » V e ¢ \ - - tuna 0 . 1 -
do t s Opifdrt
-Pnefvmd
- l - E h . {new-
a.c.c-o1_¢1»~ be Pnifl
u t ' T¢ 'n-o
VI- l nde tnn i t i es fo r la te p aym e n t a , ,5 ; ,_ Q , _ 1 1 : 2 “ , 9,9,
bet»
u m
l f the
Bor rower fails
to
pay
any
amount
p a y a b l e
b y
it
under
th is
ag reemen t
on
t h e
d u e
da te , in c l u d in g a l l e x pe n se s a n d out lays advanced b y Cred it L yonna t s unde r th e
presen t
' wi l l b
d
on
s u c h ove rdue amoun t
l oan ag r e emen t for any
r eason
wha t soeve r , in te res t e ue
fo r t h e per iod from
th e due d a t e
u p to t h e d a t e o f th e a c m a l paymen t , a t a n
in terest rate
p e r
annum
appl icable with r e s p e c t to
a n y period which wi l l be
th e sum of t h e l ega l
rate
a n d 1 .
Tha t
provision
sha l l
no t d a m a g e
payab i lit y w i thou t
not ice, a n d
sha l l
no t be t r e a t e d a s a
set t l ement ag reemen t ln tcrests s h a l l b e capi ta l ized, if
they
a r e d u e
fo r
a who le y e a r , in
accordance
wi th
ar t i c le
ll54
of th e
French
Ci vfl Code .
\ II- Effec t i ve
g l o b a l
r a t e
T o c om p ly
wi th
th e
provis ion
of
La w n°
6 6 . 1 0 1 0
o fDcce rnbe r
28,1966, relat ing
to
money loans, a n d to certain door s t e p sel l ing a n d adver t is ing opera tions . it
is
h e r e i n
s t a t e d b y way of examp le
tha t
a s s u m i n g fiil l drawdown of the
loan
a t th e d a t e of t h e
signing o f th e
present
a g r e e m e n t , t h e cficct ivc global rate o f th e loan would
b e
° 0
pe r annum, th e periodic r a t e being
of____
pe r a n n u m a n d t h e le ng th o f t h e period
o f
W P
1
M
., t
l l
-M
V . - a w n ‘ ?
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V Il
Rei u ent
particulars
8 - 1 Total
s a l e
of t h e S h a r e s g
I
.
g
uibgzghm-es
acquired
with
the present
loan
are
sold
in
agreement
with
the
Bank,
the
refl fh e loan
shall
take place a s
follows:
1 - the
s a l e
price i s
greater t h a n o r
e q u a l to
i
the amount in_principal of
e Ioan,5 ii fixed interests
possibly
due and
unpaid
a n d m
supplementary remuneration calculated respectively a s described
in
articles
IV
a n d 5 . 1 total reimbtusemem ofthe
loan shall
take place two
working d a y s
after
t h e
effective payment
date
of
the
price of
the
concluded s a l e .
Furthermore it i s a g r e e d
b e t w e e n
Credit Lyonnais
and the m
r »
once
the aforesaid sums are reimbursed
o r
paid t o
Cred i t
L y o
I possible
surplus
o n
the aftertax
capital
gains
amount
achieved o u g h
the
s a l e
will
remain
fo r
the benefit of the
Borrower.
2- If
th e
s a l e
price is lower than
or
e q u a l to
i
the a x n o m _ 1 t in principal o f the
oafl i i fixed
interests d u e
t h e s a l e pnoe shall
be
paid to
Credit
‘
Lyonnais within
the
two worldng d a y s
following
the date of the effective
payment
of
the fimds to
the Borrower, and will be
s e t off
by
the Bank: 5
- first a g a i n s t t h e fixed interests outstanding,
- and s e c o n d
a g a i n s t the amount in principal of
the loan
{£
M
tr ‘
if
No
recourse
by
the Bank against the the
Borrower
will
remain
~
concerning
the balance outstanding fol lowing
the
above
allocation.
,
8 -2
Final repayment
Ifat
the final maturity d a t e t h e s a l e of t h e S h a r e s could no t be
aeltieved,
all the
Borrowers obligations
towards
t h e
Bank
from the
present
contract will b e
definitely
e x t i n g u i s h e d
-
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ifldfntnity e q u a l to th e amoun t
l ent m ul t ip l ied
by th e Frf
Pibor
rate plus a
marg in of 3 pe r
anmnn ,
defined a n d
calculated
a s ment ioned in article
5-1,
N o amoun t p repa id
m ay b e
reborrowed.
IX Payments
All payments shal l b e made to Credit
Lyonna is Branch .
X- Accelerat ion
of th e lo a n Events o f defau l t
I_
If th e Bo r rowe r
or any of its
subs id iar ies sha l l vol tmtar i ly or involuntari ly
s u s p e n d
o r
dis
tinue
its operat ions, l iquidate a ll
o r
substantial ly a ll o f its
a s s e t s
become
insolvent o r a ll s u m s
paid
in a c c o r d a n c e with t h e p resen t loan ag reement,
in
u
g
a ll
in tersts
and
re lated
incident
e x p e n s e s
wi l l
become
immedia te ly
due a nd
payable in a d v a n c e .
H -.
The s u m s aforementioned
wi l l
moreove r b e c o m e payable if
one
of
th e fo l lowing
e v e n t s
occms :
l
T he
B o n c w e r o r
any
of
its
subs id iar ies sha l l
defaul t
in
th e d u e
performance
o r
observance
of
any
of its mater ia l
obligations in
respect of t he present a g r e e r n e n t
and in
pa ru i c u l a r
s ha l l
no t
pay a t
matu r i t y
a ny a m o u nt
du e
fo r paymen t .
2-
Any
representat ion, warranty
o r
s ta te m e n t m a d e or
deemed
to b e made by th e
Bor rower in
this
a g r e e m e n t
o r
in
a n y
d o c u m e n t
d e l i v e r e d by
t h e Borrower
u n d e r
o r in connection wi th
this
agreement prove to have been
incor rec t
in any
mater ia l
respect
w h en made o r
d e e m e d
to
b e made , a n d
If th e Bo r rowe r wou l d
b
abl
f ' th
:3 .
9 no t e
c
to? -Jusu fy
0 a n
appropnate u s e of e funds wh i c h have b e e n
w n
om
e
p resen t
l oan .
3 - if
fo r
a ny
reason,
th e
guarantee
he r ebygm f nwo in th e
present
ag r eemen t
unde r ar t ic le
XVQbecomes
vo id o r d isappears .
ifth W r r
d e f a 'a n i t s l ob l i o n s c o in g
B e r t ; < >
i
Upon
occu rcnce of one of t hese e vens , Cred i t Lyonna i s w fl l be ent i t led
to
demand th e
payment o f
a ll s u m s due, a n d
this
8 d a y s fo l lowing a
s imple notice s e n t
by
registered
to th e
Borrower
a t th e add r ess he r e ina f t e r m en t i on ed . This letter
would
mention
that
th e
Bank
intends
to
take a d v a n t a g e of thc present c l a u s e - ltwill have no
other
fo rmal i ty
to
comp l y
wi th ,
nor
a s k
fo r
th e c o urt
to
dec la re the
accelerat ion of
th e
loan.
S u b s e q u e n t payments o r rcgular izations
to
this
notice
s h a l l
no t impede
this payabihty.
2 : ’
| ]~
1 ’
1 ?‘
l
A
I
ll
P
r i fl l i t
aw
“ H ‘ ra i l ;
M
.r .
.H“ '*
‘rl
‘V
r . . , | i
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whale
M P 5 ”
r‘-
7
a s*9
Furthermore,
acceleration
of
th e loan is
d e c l a r e d , Cred i t Lyonn a is will perceive,
a s
a
penalty
glans; a
5 1 1 1 1 1 of a n
arnotmt
e q u a l to
the
amoun t o _ f
the
supplementary
3-gmungrgfiqn m g m jo n gd m p3ragn1phS-1 ,
calcu la ted
in
acco rdance with
detai ls
Of
t h e aforesaid
article
except fo r t h e _ l e n g 1 - h
W b m h
W 7
S im 5°
T °
Pa ymm l 5 - 3 1 ° °f *3
loan to the Borrower up to
the
r c1mburs@t t d a t e of
the
loan.
XI
Information
Dur ing the whole leng th of th e l oan , th e borrower shall i n f o rm Credi t L yonna i s ,
by
prov id ing al l written p r oo fofal l
t ransformat ions, concern ing the
Comp any s
f o rm ,
n a t u r e ,
o r
capacity
(in
part icular c h a n g e
of
n a m e , merger, o r t ransformat ion in to a n
other
type
of company , registered
o f f i ce transfer,
opening ofa procedure d e
redressem ent judic ia ire , ou t of cour t l iquidat ion, winding up, . . . )
a n d
of all m aterial
e v e n t s
mod i f y the impor tance
o r the
value
of
it s a s s e t s
o r
to
i n c r e a s e
dramat ically
the vo lume of it s commi tments .
This
type
of in format ion shall have to be
received
within 3 weeks fo l lowing that e v e n t .
XII-
Under tak ings
o f
the
Borrower
1 2 - 1
F o r s o
l ong a s
this
a g r e e m e n t
is
in
effect
a n d an y amoun t payable
under
this
agreement is outstanding, th e Borrower hereby undertakes to :
f u rn i sh t o
the
Bank .
a s s o o n a s they
a r e available
in
accordance
with
legal an d statutory d a t e s
a n d t e r m s ,
cert ified
copies of it s annual balance
s h e e t s , profit
a n d l o s s
a c c o u n t s
a n d
d o c u m e n ts a t ta c h ed , a s well a s
all
m i n u t e s o f
ordinary
a n d e x tr a o d i n a z y s h a re h o l d e rs m e e t in g s , a n d
all
i n format ion,
reports o r s t a t e m e n t s that the Bank
cou ld reasonably r e q u e s t
at
an y t ime,
b _
2 1 -
not i fy
without
d e l a y
a n y
e v e n t o f d e f a u l t o r
a n y e v e n t
which c o u l d
become a n event ofdefault fo l lowing no t i fica ti o n , o r after a certain delay
o rbo th a n d
stat ing the
facts
concern ing this event,
e - in form Cred it Lyonna is pr ior to
any
s a l e of the
S h a r e s
hereby acquired,
a t the latest 1 5 wofic ing
d a y s
before
the d a t e
of the s a l e of
the
S h a r e s .
12-2
Fur therm ore, the Borrower
u n d e r t a k e s
that
the
S h a r e s hereby acqu ired be sold
pr ior
to
an y
other s h a r e s
issued
by Adidas Internat ional
Hold ing
Gmbh which
cou ld behe ld by
the
Borrower, a n d
up
to the amoun t hereby owed by
the
Borrower
t o Credit L y o n n a i s , a n d unt i l t o t a l
mbo f t h e
l o a n
.= 1
p l :
‘ ~ r 7 _
in
rt
il l
| . 1 | 4
r _ ; a l \
U ~r
m
i
l|
to
v
W ‘
l
r M ‘
“ugh n i l ‘ ?
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ZlII- Taxes
My d l . 1 5 i {N 1 WM. whe the r
p resen t
or fu ture, a n d more
general ly,
a ll e x p e n s e s in
e
p a i d b y e ; = n t t '§ a ln a s : tu '@ % n a ia r s * h t e n s ah v l te a it M m l e e s e l l
Lyonna ts ; fo r
th is
purpose
they
wi l l
b e
a d d e d to th e pr inc ipa l
a m o u n t of
th e
loan
and
t r e a t e d a s s u c h .
XIV Cond i t ion Preceden t
Th is
a g r e e m e n t is c ond it io na l upon :
-
de l iye ry
to Cred i t Lyonna i s of a
le t ter
f rom Mai t re notaire ,
cer t i fy ing
t ha t
t h e S h a r e s h e re b y fi n a nc e d a r e du ly p ledged
in
f avou r o f Cred i t
Lyonna is m th e
fi r s t
place a n d
wi thou t
compet i t ion . C7
XV-
Gove rn i ng
L a w
an d
Jur isd ic t ion
Th is ag remen t
sha l l
be
governed b y
a n d c o n s t r u e d in
accordance wi th
th e laws of th e
French Repub l i c .
T he
Bor rowe r i r revocab ly a g r e e s t ha t any
proceed ings
ar ising ou t of
o r
connec t ion
wi th
this
ag reemen t
m ay be b m u g h t in
any
cour t of
compe ten t _ ] u 1 ‘ l S d l C D O I l , m
th e
j u r i s d i c t i o n
o f u ‘ C o u r d ' A p p d d o P a r i s ‘
XVl Cho ice of
Res idence
F o r t h e e x e c u tio n of th e
p r es e n t a g re e m e n t
, pa r t i e s
dec i de
to
choose
as
r e s i dence :
C r e d i t
Lyonna i s , .
- T h e B o r r o w e r ,
i n
i t s h e a d o f fi c e
Execu ted in Pa r i s
on_________
intw o or ig ina ls o n s ta m p ed p ap er.
ml
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The a .
Group
Execut ive
Summary
CL is a se lec tive group o investors to part icipate in th e 600
Mil l ion
acquisit ion
o th e
a . Group by n p rom in e nt new
m a n a g e r .
The
a
G 1 - n u p is a l eading spoi l ing
goods
c o m p a n y
h e a d q u a r t e r e d
in
Germany
w i t h
wor ldw ide o p e r a t i o n s . In
1 9 9 2 ,
it g e n e r a t e d s a l e s o f
approximately 1 .9Bi l l ion
The
brand
is
o n e o t h e
te n
most recognized brands
wor ldw ide.
pa,
mum- ,
fiflly
Q g p l g j n g d
b e l o w ,
C L is
o fi e r i n g p a r t i c i p a n t s
a
v e r y a t t r a c t i v e
i n v e s t m e n t
° P P ° r w i ’ ¢ Y
with
F m a n e i a l terms eanbe summarized a s fol lows:
Fo r e a c h
1.00
invested in th e t r a n s a c t i o n , CL provides a
loan
o 1 .00
to
th e
investor
a t
th e nom inal ra te
o 0.5
per
a n n u m
wi th a profi t participation s c h e m e a s e x p l a i n e d
below.
There
a r e three s c e n a r i o s
fo r
exit:
S e e
a t ta c h e d ta b l e s )
(i) Th e r n ane ge rmaye xe rc is e aca l lb y Iu ly 3 1 , l9 94 on t he in v e s t ofs sharesa.ta4-0
premium on e a c h 1.00
m v e s t e d .
In that e a s e , approximately 3 5 a r e paid to CL
a n d 5 to th e
investor .
(i i) C L may fi n d a buyer o r organize a n
IP O
after
July
31 , 1 9 9 4 a n d pr ior to Deeanber
3 1 ,
1 9 9 7
in
which c a s e th e
investor s h a l l
b e r e q u e s te d by CL
to
s e l l
his
i n v e s t m e n t .
Cap i ta lga inssha l l thenbesp l i t , 8 0 toCLand2 .0
tothe inves torprn ' suan t to a
preferred return
o
cap i ta l Profi t potent ia l to
th e
i nves tor
by
1 9 9 7
is
e s t i m a t e d at
5
to
4 5
on e a c h 1 . 0 0 i n v e s t e d .
S u c h
mw i nd i n g by CL
provides
that a n y
p0l8l lfiZ1 l o s s e s
on
th e
i n v e s u n e n t
s h a l l b e
d e d u c t e d
by th e inves tor
from
th e
pr i nc i pa l
o th e
loan ( 1 0 0
Guarantee).
( i i i )Afier July 31 , 1 9 9 4 ,
th e in vest or
may
prepay th e
loan wi th a
p r e p a y m e n t penal ty
e q u a l
to
th e
equivalent
FF in te rbank
r i te plus
3
per annum a n d h a v e fiill d i s p o s a l
o
th e s h a r e s -
In tha t
e a s e ,
t h e profi t potent ial to
th e
investor by 1 9 9 7 is e s t i m a t e d
at
2 5
to
225
on
e a c h
1 . 0 0 in v e s te d
(up
to
3 5
IRR).
I f the
investor
d e c i d e s
to
p r e p a y
t h e
l o a n ,
a n d in t h a t c a s e o n l y , h e
t h e n
b e a r s a l l
th e
d o w n s i d e risk
assoc iated with th e in v e s tmen t a lo ng w i t h 100
o
th e
upside.
Unde r an y o the r
c k o m s t w w s . t h e r e is
»
m l j _ \ ‘ | u
W11- “
L
> l ‘ l i r 2 ? | . i
‘ w' | lWm'
> i fl K € i » l
mu M
y a
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12/16
W
,1 ’
AIG h a s
b e e n a p p r o a c h e d
to
i nves t u p
to 1 2 0
Mil l ion ( 2 0
%
o f th e equ ity )
in
this
ve ry r m i q u e
t ransact ion.
o f340%o f co s t :
It
d e p e n d s on th e s c e n a rio s d e s c r ib e d a b o v e
a s
wel l
a s t h e
ex i t
va lue
( s e e a t t a c h e d
exh ib i t l
fo r
sens i t iv i ty a n a l y s i s ) .
Un de r
scmar io
( i): 6 .6 Mil l ion
(w i th
z e ro fi nanc ia l r isk) o r
5 .5
.
U n d e r s c e n a r i o
( i i):
U p to S 5 4
Mil l ion
(w i th z e r o
financ i a l
r i sk) o r
up to
4 5
% .
Un de r s o e n a r i o (ii i): U p to 2 7 0 Mil l ion
(w i th
financ i a l downs ide in th e lo nge r t e rm)
o r
2 . 2 5 .
R e a s o n s
fo r CL 's
ve ry
attract ive t e r m s o f
olfen
l /
Sho r t
time
frame:
fi rm
commitment r e q u e s t e d fi o m investors b y
Mo n da y
February
8 , 1 9 9 3
.
2 . A d ivers i fied group of
in ternat ional
i n v e s t o r s back ing
th e
n ew m a n a g e r pro vid es a better
profile to th e t ransact ion a n d improves the o d d s o f s u c c e s s .
3.
C L
does n o t
w a n t to appea r
a s th e conuo l l i n g
shareho lder of
th e
a .
Group
because
it is a
major
l ender to
th e
operat ing c o m p a n y . C L
w a n t s to
l imit
it s
overa l l deb t e x p o s u r e
a n d
avo id b e in g
a
potent ia l targe t
of
u n i o n s
in
th e
e v e n t
of
layo ffs and /o r
a w a ge fi ee ze .
4]
CIJAGF
(French
Government)
d o n o t
wan t to a p p e a r a s th e so le bu y e rs o f
BT's
s h a r e s in
th e
a Group.
BI
i s
current ly
Min i s te r o f
city p l a n n i n g in
th e F re n c h Government .
Addi t iona l
b u s i n e s s opportuni t ies to
AIG:
1 . /
B id
on Proper ty Casua l t y i n s u r a n c e o f th e a Group wor ldw ide , possibly a s co- i nsurer wi th
AGF.
2. Prov ide
key-man
i n s u r a n c e to
t h e
s h a r e h o l d e r s
o f th e a _ Group r ega r d in g the
new
m a n a g e r .
3 Potent ia l ly
help th e a . Group p e n e t r a t e
c e r t a i n
m a r k e t s
s u c h
a s China e t c . . .
l
2
P
L
El
_
-
ill
in
lg l
r.
I
IA
I
l
‘lr
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