EX-10.3 6 d246339dex103.htm EX-10.3 EX-10.3

Exhibit 10.3

EXECUTION COPY

SUBSCRIPTION AGREEMENT

THIS SUBSCRIPTION AGREEMENT (this “Subscription Agreement”) is made as of the 15th day of July, 2013, by and between Playa Hotels & Resorts B.V., a Netherlands company (the “Company”), and HI Holdings Playa B.V., a company incorporated under the laws of the Netherlands (the “Subscriber”).

RECITALS

WHEREAS, the Company wishes to issue to the Subscriber the Shares, and the Subscriber desires to subscribe for and acquire the Shares pursuant to the terms and conditions more fully set forth in this Subscription Agreement;

NOW, THEREFORE, in consideration of the above recitals and the mutual agreements and covenants set forth herein and for other good and valuable consideration, the Parties hereby agree as follows:

1. Subscription.

(a) Capital Contribution. Subject to the terms and conditions hereof, on the Closing Date the Company shall issue those Preferred Shares and Ordinary Shares (as such terms are defined below) of the Company indicated on Schedule 1 (the “Shares”) by means of a notarial deed of issuance, substantially in the form as attached hereto as Schedule 2, to the Subscriber, against delivery by the Subscriber to the Company of the total consideration relating to the Shares at the issue price per Preferred Share and Ordinary Share indicated on Schedule 1 (the “Capital Contribution”). The Company shall cause the Shares issued to the Subscriber to be registered in the Company’s shareholders register as soon as possible after Closing.

(b) Payment. The Capital Contribution shall be payable in immediately available funds in Dollars by wire transfer to an account specified by the Company, it being understood that the amount of the Capital Contribution payable by Subscriber at Closing shall be reduced by (set off against) the amount of the Hyatt Advance Funding (as defined in the Advance Funding Agreement) funded by an affiliate of Subscriber pursuant to the Advance Funding Agreement, which shall be deemed part of the total Capital Contribution. Any amounts contributed in excess of the nominal value of such Shares shall be accounted for in the books of the Company as share premium on such class of Shares. For the avoidance of doubt, Subscriber’s initial Invested Capital (as defined in the Investors Agreement) shall equal the entire Capital Contribution, including the Hyatt Advance Funding, being three hundred twenty-five million dollars ($325,000,000) on the Closing Date.

2. Closing. Subject to the satisfaction or waiver of all the conditions to closing contained in Section 8 (the “Conditions”), the closing of the issue and sale of the Shares to the Subscriber contemplated by this Subscription Agreement (the “Closing”) will take place at a date and time to be specified by the Company in a notice to the Subscriber (the “Closing Date”), which will be no earlier than the next Business Day after satisfaction or waiver of the Conditions (other than those Conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions at the Closing), at the offices of Hogan Lovells US LLP

 


in Washington, D.C., provided, however, that the notarial deed of issue of the Shares will be executed by a civil law notary or its deputy of NautaDutilh N.V. in the Netherlands, unless another time, date or place is agreed by the Parties, but in no event shall the Closing take place later than the Termination Date.

3. Adjustment for Net Cash Shortfall to Number of Shares.

(a) Actual Net Cash. As soon as practicable but not later than thirty (30) calendar days after the Closing Date, the Company shall prepare and deliver to the Subscriber (i) a detailed calculation (the “Actual Net Cash Statement”) of actual Consolidated Net Cash as of the Closing Date (the “Actual Net Cash”) and (ii) all work papers and copies of source documents that reasonably support and document the Company’s determination of the Actual Net Cash (collectively, the “Supporting Documents”).

(b) Objection Notice. Within twenty (20) calendar days after the delivery of the Actual Net Cash Statement and Supporting Documents to the Subscriber, the Subscriber may deliver written notice (the “Protest Notice”) to the Company of any reasonable objections to the Company’s calculation of Actual Net Cash. The Protest Notice shall (i) describe the nature of the Subscriber’s objection in reasonable detail, (ii) identify the specific items involved and the dollar amount of each such objection, and (iii) be accompanied with reasonable supporting documentation for each of the Subscriber’s objections. Alternatively, the Subscriber may, within twenty (20) calendar days after the delivery of the Actual Net Cash Statement and Supporting Documents to the Subscriber, deliver a Protest Notice stating that the Subscriber, at its sole cost and expense, wishes to have its own accountants conduct a review of the relevant books and records of the Company, in which case the Company shall provide reasonable access to the Subscriber and the Subscriber’s accountants to the Company’s books and records for a period of thirty (30) calendar days after the delivery of the Protest Notice (the “Inspection Period”), and on or prior to the end of the Inspection Period, the Subscriber may deliver an additional Protest Notice. If the Subscriber fails to deliver a Protest Notice or an additional Protest Notice within the prescribed time periods, then the Subscriber will be deemed to have accepted the Actual Net Cash Statement and the Company’s calculation of Actual Net Cash. After the expiration of the Inspection Period, the Subscriber may not introduce additional disagreements with respect to any item in the Actual Net Cash Statement or the Company’s calculation of Actual Net Cash.

(c) Dispute Resolution. If the Subscriber timely delivers a Protest Notice or additional Protest Notice to the Company, then any dispute shall be resolved as follows:

(i) The Company and the Subscriber shall promptly endeavor to negotiate in good faith to agree upon the amount of the Actual Net Cash. If a written agreement determining the amount of the Actual Net Cash has not been reached within ten (10) Business Days after the date of the Company’s receipt of the Protest Notice or additional Protest Notice as the case may be, then either the Subscriber or the Company may submit the items in dispute to KPMG LLP (the “Net Cash Arbiter”) for determination.

 

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(ii) The Net Cash Arbiter shall be directed to render a detailed written report that sets forth the resolution of all items in dispute and that contains a final copy of the Actual Net Cash Statement as promptly as practicable, and to resolve only those issues of dispute set forth in the Protest Notice or additional Protest Notice as the case may be. The Subscriber and the Company shall each furnish the Net Cash Arbiter with such work papers, schedules and other documents and information relating to the unresolved disputed Actual Net Cash issues as the Net Cash Arbiter may reasonably request. The Net Cash Arbiter shall establish the procedures it shall follow (including procedures regarding the presentation of materials supporting each party’s position) giving due regard to the mutual intention of the Company and the Subscriber to resolve each of the disputed items and amounts as accurately, quickly, efficiently and inexpensively as possible, but in no event later than ninety (90) calendar days after the Protest Notice or additional Protest Notice as the case may be, is sent by the Subscriber. The Net Cash Arbiter’s resolution of the dispute and the calculation of the Actual Net Cash shall be final and binding upon the Parties, absent manifest error. The fees and expenses of the Net Cash Arbiter shall be borne equally by the Company and the Subscriber.

(d) Net Cash Adjustment. After the final determination of Actual Net Cash, if Actual Net Cash is less than the Net Cash Target (the amount by which Actual Net Cash is less than the Net Cash Target being the “Net Cash Shortfall Amount”), then the Subscriber shall be entitled to be compensated for the diminution in the value of its investment in the Company, which compensation shall be paid to it by the Company through the issuance by way of a deed of issuance, for no additional consideration payable by the Subscriber (other than the nominal value of the newly issued Ordinary Shares), of an additional number of newly issued Ordinary Shares of the Company (the “Net Cash Adjustment Shares”) equal to (x) the product of (A) the Net Cash Shortfall Amount and (B) the Subscriber’s fully diluted equity ownership percentage of the Company as measured immediately after the Closing, divided by (y) US$7.00, within fifteen (15) Business Days after the date of final determination of Actual Net Cash (the “Net Cash Adjustment Shares Issue Date”). The Company shall cause the Net Cash Adjustment Shares issued to the Subscriber to be registered in the Company’s shareholders register as soon as possible after the Net Cash Adjustment Shares Issue Date. The excess (if any) of the Actual Net Cash over the Net Cash Target being the “Net Cash Surplus Amount”.

(e) Real VAT Receivable Adjustment. The Company shall issue to the Subscriber such a number of Ordinary Shares equal to (x) the product of (A) any VAT Amount (as defined in Real Acquisition Agreement) minus the sum of (i) the amounts reimbursed by the Mexican tax authorities related to such VAT Amount (or credits relating to or arising from such VAT Amount) on or before the fourth anniversary of the Closing Date and (ii) the Net Cash Surplus Amount, if any, and (B) the Subscriber’s fully diluted ownership percentage immediately after the Closing, divided by (y) $7.00 (as adjusted for stock splits, combinations and other similar events relating to the Ordinary Shares). Such issuance shall be effected as soon as reasonably practicable but in any case no later than forty-five (45) calendar days after the fourth anniversary of the Closing Date.

4. Representations and Warranties of the Subscriber. The Subscriber hereby represents and warrants to the Company that the following statements are true as of the date hereof (unless otherwise specified) and as of the Closing Date:

(a) No Conflict. Neither the execution and delivery of this Subscription Agreement nor compliance by the Subscriber with the terms and provisions hereof will conflict with, or result in a breach or violation of, any of the terms, conditions and provisions of: (i) any

 

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judgment, order, injunction, decree or ruling of any court or Governmental Authority to which the Subscriber or any of its properties or assets is subject, (ii) any agreement, contract, lease, license, order or commitment to which the Subscriber is a party or to which it is subject, and that would impair the ability of the Subscriber to execute, deliver or perform its obligations under this Subscription Agreement or the documents contemplated hereby, (iii) the Subscriber’s documents of organization, or (iv) applicable law. Such execution, delivery, performance and compliance by the Subscriber with this Subscription Agreement or the documents contemplated hereby to be entered into and performed by the Subscriber will not require the consent, approval or waiver of any Person, other than the Regulatory Approvals.

(b) Accredited Investor. The Subscriber is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act of 1933 (the “Securities Act”).

(c) Investment Intent. The Subscriber is subscribing for the Shares for the Subscriber’s own account and not with a view to their resale or distribution in violation of applicable securities Laws. Except to the extent expressly provided in the Investors Agreement or in this Subscription Agreement, the Subscriber has no contract, undertaking, arrangement or agreement with any Person to sell or transfer or to have any Person sell for the Subscriber all or any portion of the Shares. The Subscriber has no present obligation, indebtedness or commitment, nor is any circumstance in existence that will compel the Subscriber to secure funds by the sale of all or a portion of the Shares, and the Subscriber does not now have any reason to anticipate any change in circumstance or other particular occasion or event that would cause the Subscriber to transfer all or any portion of its investment in the Company. The Subscriber does not intend or anticipate that the Subscriber will rely on this investment as a principal source of income.

(d) Investment Experience. The Subscriber is a sophisticated investor and has such knowledge and experience in financial and business matters, including with respect to investments similar in nature to the Shares, such that the Subscriber is capable of evaluating the merits and risks of an investment in the Company and entering into the agreements contemplated hereby, including the Investors Agreement.

(e) Access to Information. The Subscriber has been provided with the opportunity to ask questions and seek answers concerning the Company, the Company Subsidiaries and the Transactions. The Subscriber further acknowledges that the Subscriber has received satisfactory information concerning the business and financial condition and plans of the Company and the Company Subsidiaries and the other entities referenced in the Transaction Documents.

(f) No General Solicitation. The Subscriber is not accepting the Shares upon issue as a result of, and is not aware of, any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

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(g) Power and Authority. The Subscriber is authorized and has all necessary power and authority to subscribe for and hold an interest in the Company and to enter into all the other agreements in relation to the Transactions to which it is a party, including the Investors Agreement.

(h) Economic Risk. The Subscriber is able to bear the economic risk of the proposed investment in the Company for an indefinite period of time, has no need for liquidity in the investment and could afford a complete loss of all such investment.

(i) Due Authorization. The Subscriber has all necessary power and authority to execute and deliver this Subscription Agreement and other applicable documentation in connection with the Subscriber’s subscription for the Shares on its behalf, has duly and validly executed and delivered this Subscription Agreement, and has all necessary power and authority to perform its obligations under this Subscription Agreement and the other documents contemplated hereby. The individual signing this Subscription Agreement and such other documentation is authorized to do so on behalf of the Subscriber. This Subscription Agreement constitutes a legal, valid and binding obligation, enforceable against the Subscriber in accordance with its terms, subject to the effect of Laws relating generally to creditors’ rights and the availability of equitable remedies.

(j) No Operations. The Subscriber is aware that (i) prior to consummation of the Transactions, the Company has no operating history; (ii) the Shares involve a substantial degree of risk of loss of the Subscriber’s entire investment; (iii) there is no assurance of any income from such investment; and (iv) any income tax benefits that may be available to the Subscriber may be lost through the adoption of new Laws or regulations and by changes to existing Laws and regulations and changes in the interpretation of existing Laws and regulations. The Subscriber, in making its investment, if relying on any tax advice, is relying solely on the advice of its tax advisor with respect to the tax aspects of an investment in the Company. The Subscriber acknowledges and agrees that the Shares, if issued, will be subject to the transfer restrictions and other restrictions that will be set forth in the Investors Agreement and the Company’s Articles of Association, and that the rights associated with the Shares are as set forth in the Company’s Articles of Association and the Investors Agreement.

Without prejudice to the Subscriber’s rights and remedies under this Subscription Agreement (including under Section 10(c) and under applicable law) with respect to any breach by the Company of any of its representations and warranties made in this Subscription Agreement, the Subscriber acknowledges that it understands the meaning and legal consequences of its representations and warranties in this Section 4 and that the Company shall rely upon such representations and warranties in determining whether to accept the Subscriber’s subscription prior to the Closing.

5. Representations and Warranties of the Company. The Company hereby represents and warrants to the Subscriber that the following statements are true as of the date hereof (unless otherwise specified) and on the Closing Date (unless otherwise specified), except as otherwise disclosed in the Company Disclosure Letter attached hereto as Schedule 7:

(a) Valid Issuance. Subject to the occurrence of the Closing, on the Closing Date, the Shares will be duly and validly issued, and, when issued and delivered pursuant to this Subscription Agreement and the notarial deed as referred to in Section 2, such Shares will be

 

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duly and validly issued, fully paid and non-assessable, free and clear of any Liens and free of any restrictions on transfer, in each case other than Liens and restrictions on transfer that will be contained in the Investors Agreement and the Company’s Articles of Association and under applicable securities Laws of any jurisdiction. As of Closing, both (i) the authority to issue Preferred Shares to the Subscriber in payment of dividends on the Preferred Shares (the “PIK Dividend Shares”) pursuant to the terms of the Company’s Articles of Association and the Investors Agreement (the “PIK Dividends”) and (ii) the authority to exclude pre-emptive rights in relation thereto shall have been validly delegated to the Board of Directors (as defined in the Investors Agreement) pursuant to the resolutions, instruments and agreements described on Schedules 20 through and including 22. When any PIK Dividend Shares are issued by the Company in accordance with the terms of and pursuant to the Company’s Articles of Association and the Investors Agreement, such PIK Dividend Shares will be duly and validly issued fully paid and nonassessable and will be free of any Liens and free of any restrictions on transfer, in each case other than Liens and restrictions on transfer contained in this Subscription Agreement, the Investors Agreement and the Company’s Articles of Association and under applicable securities Laws of any jurisdiction. The Ordinary Shares and Preferred Shares shall have all of the rights, preferences, privileges, powers and restrictions set forth in the Company’s Articles of Association and the Investors Agreement.

(b) No Conflicts. The execution and delivery of the Transaction Documents by the Company or the Company Subsidiaries (as the case may be), the performance by it and the Company Subsidiaries with its and their obligations hereunder and thereunder and the consummation of the Transactions will not (i) require any consent of or other action by any Person under (other than the Regulatory Approvals and the Third Party Approvals set forth on Part 5(b) of Schedule 7), conflict with, or result in a breach or violation of, any of the terms, conditions and provisions of: (A) any judgment, order, injunction, decree or ruling of any court or Governmental Authority to which the Company, the Company Subsidiaries or any of their respective properties or assets is subject; (B) any agreement, contract, lease, license, order or commitment to which the Company or a Company Subsidiary is a party or to which any of them is subject or by which any of its properties is bound, and that would impair the ability of the Company or the Company Subsidiaries to execute, deliver or perform its obligations under the Transaction Documents; (C) the Organizational Documents of the Company or any of the Company Subsidiaries; or (D) applicable Law or (ii) result in the creation or imposition of any Lien (other than Permitted Liens) on any Assets of the Company or any Company Subsidiaries, except in the case of each of (i)(A), (B) and (D) and (ii) as would not reasonably be expected to have a Material Adverse Effect.

(c) No Consents, Approvals, Etc. Except as set forth in Part 5(c) of Schedule 7, the execution and delivery of the Transaction Documents by the Company or the Company Subsidiaries (as the case may be), the performance by it and the Company Subsidiaries its and their obligations hereunder and thereunder and the consummation of the Transactions do not and will not require any filing or registration with, notification to, or authorization, permit, consent or approval of, or other action by or in respect of, any Governmental Authority or Third Party, other than the Regulatory Approvals and the Third Party Approvals.

 

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(d) Organization. The Company and the Company Subsidiaries are duly organized and validly existing under the Laws of their respective jurisdictions of incorporation with all requisite corporate power and authority under such Laws to conduct their respective businesses. The deed of incorporation of the Company including the articles of association as in effect as of the date hereof is attached hereto as Schedule 3.

(e) Subsidiaries. Other than as set forth on Part 5(e) of Schedule 7, immediately prior to the Closing, the Company shall have (i) no direct or indirect subsidiaries other than the Company Subsidiaries and the New Subsidiaries and (ii) no assets or liabilities other than assets and liabilities incurred in connection with its formation and activities undertaken in connection with the Transactions (the “Organizational Liabilities”). The outstanding equity interests of the entities identified on Schedule 4 hereto (the “Company Subsidiaries”) and of the New Subsidiaries have been duly and validly authorized and issued and are fully paid and nonassessable. Upon the consummation of the Transactions, the Company will have, directly or indirectly, good and marketable title to, free and clear of any Liens (other than Permitted Liens), 100% of the equity interest in the Company Subsidiaries and the New Subsidiaries. Except for obligations incurred in connection with their organization and the Transactions contemplated hereby, the New Subsidiaries have neither incurred any obligation or liabilities nor engaged in any business or activity of any type or kind whatsoever or entered into any agreement or arrangement with any Person.

(f) Capitalization. As of the date of this Subscription Agreement, 20,000 shares, each with a nominal value of US$1.00, are issued and outstanding. Except for such shares currently issued and outstanding, there are no shares of capital stock or other equity securities of the Company issued and outstanding. All of the outstanding shares of the Company are duly authorized, validly issued, fully paid and nonassessable. Immediately following the Closing and the consummation of the Transactions, all of the outstanding Shares in the Company will have been duly authorized, validly created and fully paid and nonassessable, and no holder thereof will be subject to personal liability by reason of being such a holder. Immediately following the Closing and the consummation of the Transactions, the outstanding shares of the Company shall be as set forth in Schedule 1 of the Investors Agreement. Part 5(f) of Schedule 7 sets forth for each Company Subsidiary and New Subsidiary, as of immediately following the Closing and the consummation of the Transactions, the amount of each Company Subsidiary’s and New Subsidiary’s outstanding shares (or equivalent equity instrument) of capital stock, jurisdiction of incorporation or formation, as applicable, record and beneficial owners of its outstanding capital stock, and respective percentages of ownership. Immediately following the Closing and the consummation of the Transactions, there shall be no other shares of capital stock or other equity securities of any Company Subsidiary or New Subsidiary issued or outstanding, and all of the capital stock and outstanding equity securities and other securities of each Company Subsidiary and New Subsidiary shall be owned of record and beneficially by the Company or one or more Company Subsidiaries or New Subsidiaries, free and clear of all Liens (other than Permitted Liens). Other than as set forth in the Company’s current Articles of Association (prior to the Closing) or contemplated by this Subscription Agreement, the Investors Agreement, the Company’s Articles of Association or the Transaction Documents, (i) there are no authorized or outstanding subscriptions, options, conversion or exchange rights, warrants, repurchase or redemption agreements, or other agreements, awards, claims or commitments of any nature whatsoever obligating the Company, the Company Subsidiaries or the New Subsidiaries to issue, transfer, deliver or sell, or cause to be issued, transferred, delivered, sold, repurchased or redeemed, additional shares of the capital stock (or “phantom stock rights”) or

 

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other securities of the Company, the Company Subsidiaries or the New Subsidiaries or obligations of the Company, a Company Subsidiary or a New Subsidiary to grant, extend or enter into any such agreement, (ii) the holders of shares of the Company outstanding on the date hereof or issuable upon consummation of the Transactions are not entitled to preemptive or other rights to subscribe for the Shares to be issued to the Subscriber hereunder other than those as have been duly waived or excluded in accordance with Dutch Law, and (iii) there are no contractual obligations or commitments of any character to which the Company, any Company Subsidiary or any New Subsidiary is a party requiring the registration for sale of any shares of capital stock of or other voting or equity interests in the Company under any Laws. There are not any bonds, debentures, notes or other indebtedness of the Company, the Company Subsidiaries or the New Subsidiaries having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of shares may vote (other than as contemplated in the Newco Credit Agreement and the ancillary documents referenced therein).

(g) Investment Company Act. The Company is not, and immediately following the Closing will not be, an “investment company” as defined under the Investment Company Act of 1940.

(h) No Litigation. Except as set forth on Part 5(h) of Schedule 7, there are no actions, suits, proceedings, orders, investigations or claims pending or, to the Knowledge of the Company, threatened against or affecting the Company or the Company Subsidiaries, or pending or threatened by the Company or the Company Subsidiaries against any third party, at law or in equity, or before or by any governmental department, commission, board, bureau, agency or instrumentality (including any actions, suits, proceedings or investigations with respect to the Transactions), except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

(i) Insurance. The Company (as of the Closing) and each of the Company Subsidiaries are insured by insurers of recognized standing against such losses and risks and in such amounts as are customary in the businesses in which they are engaged; all policies of insurance insuring the Company or any of the Company Subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect (or with respect to the Company will be in effect on the Closing Date); and the Company on the Closing Date will be and each of the Company Subsidiaries are in compliance with the terms of such policies and instruments in all material respects; except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

(j) Compliance with Laws. Except as set forth in Part 5(j) of Schedule 7: (i) none one of the Company or, to the Knowledge of the Company, any of the Company Subsidiaries has violated any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or such subsidiary or any of its properties, as applicable, except for such violations or defaults that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (ii) none of the Company or, to the Knowledge of the Company, the Company Subsidiaries has failed to obtain or violated any license (including the operational, building and environmental permits and licenses for the

 

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Company’s hotels located in the Dominican Republic), certificate, permit, authorization, registration or similar right required by Law to operate its business or any of its properties, which violation or failure would reasonably be expected to have a Material Adverse Effect, and the Company has not received notice of any such violation; and neither the Company nor any such subsidiary has received any written notice of proceedings relating to the revocation or modification of any such license, certificate, authorization or permit which, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect.

(k) Anti-Corruption Laws. Neither the Company nor, to the Knowledge of the Company, any of the Company Subsidiaries or any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of applicable Anti-Corruption Laws; and the Company, and, to the Knowledge of the Company, the Company Subsidiaries have conducted their businesses in compliance with applicable Anti-Corruption Laws.

(l) Environmental Matters. Except as set forth in Part 5(l) of Schedule 7, the Company and, to the Knowledge of the Company, the Company Subsidiaries (i) are in compliance with any and all applicable Environmental Laws, (ii) have received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) have not received written notice of any actual or potential liability under any Environmental Law, except where such non-compliance with Environmental Laws, failure to receive or comply with required permits, licenses or other approvals, or the matters relating to such notices or the liability relating thereto would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(m) Financial Statements; Sources and Uses. A true and correct copy of the Delivered Financial Statements has been provided to the Subscriber and is set forth on Schedule 6 attached hereto. The Delivered Financial Statements present fairly the financial position and results of operations of the Company Subsidiaries at the dates and for the respective periods indicated therein and have been prepared in accordance with IFRS, applied on a consistent basis throughout the periods involved. The sources and uses of the amounts to be paid pursuant to the Transaction Documents are in all material respects as set forth on Schedule 5 attached hereto; provided that (x) the amount corresponding to the line item “swap breakage fee” referenced on Schedule 5 shall not exceed $48,000,000 and (y) with respect to amounts corresponding to the line item “Transaction Expenses at 2%” referenced on Schedule 5, the aggregate of such amounts shall not exceed $28,700,000, it being understood that there may be variations between the categories of such expenses.

(n) Internal Controls. Except as set forth in Part 5(n) of Schedule 7, the Company and each of the Company Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed and access to assets is permitted only in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain asset accountability; and (iii) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

 

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(o) No Undisclosed Liabilities. Except as set forth on Part 5(o) of Schedule 7, the Company and the Company Subsidiaries do not have any obligations or liabilities (whether accrued, absolute, contingent, unliquidated or otherwise, whether or not known to the Company, whether due or to become due and regardless of when asserted) that are required to be reflected on their respective balance sheets other than (i) those reflected on the balance sheet as of March 31, 2013 included in the Delivered Financial Statements (the “Balance Sheet”), (ii) the Organizational Liabilities and (iii) liabilities incurred since the date of the Balance Sheet in the ordinary course of business consistent with past practices, other than in each case as would not reasonably be expected to have a Material Adverse Effect.

(p) No Material Adverse Change. From December 31, 2012 through the date hereof, the business of the Company and the Company Subsidiaries has been conducted in all material respects in the ordinary course consistent with past practice (except as contemplated by the Transaction Documents) and there has not occurred any Material Adverse Change. As of the Closing Date, the Company represents that the Company and the Company Subsidiaries have been operated in the ordinary course consistent with their respective past practices since December 31, 2012 except as contemplated under the Transaction Documents.

(q) Taxes. Except as set forth on Part 5(q) of Schedule 7: (i) the Company and the Company Subsidiaries have accurately prepared and timely filed, or caused to be accurately prepared and timely filed, with the appropriate taxing authorities all material tax returns required to be filed by any of them; and (ii) the Company and the Company Subsidiaries have timely paid, or caused to be paid, reserved or caused to be reserved all taxes, including real property taxes, owed by any of them, and have paid any related assessments, fines or penalties, except where the failure to file such returns and pay such taxes and related assessments, fines or penalties would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect; and there is no tax deficiency that has been, or could reasonably be expected to be, asserted against the Company or the Company Subsidiaries or any of their respective properties or assets, except where such deficiency would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No material item of income, gain, loss, deduction or credit of the Company or the Company Subsidiaries is under current examination by any taxing authority. The reserves for taxes indicated on the Balance Sheet are in accordance with IFRS.

(r) Title to Assets. Other than Permitted Liens or as set forth on Part 5(r)(i) of Schedule 7, each of the Company and the Company Subsidiaries has good, marketable and valid title to all real property owned by it and good title to all material personal property owned by it and good and valid leasehold interests in real and personal property being leased by it and, as of the Closing Date, such property and leasehold interests (as applicable) will be free and clear of all Liens other than Permitted Liens. Part 5(r)(ii) of Schedule 7 sets forth a list of all buildings and underlying land comprising the hotels owned by the Company and the Company Subsidiaries. The Company and the Company Subsidiaries own or lease or can acquire in the ordinary course of business all of the personal property required to conduct their business activities and operations as currently conducted. All personal property owned or leased by the

 

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Company and the Company Subsidiaries is located in the hotels or located on any parcel of the real property owned or leased by the Company and/or a Company Subsidiary or otherwise is in the possession of the Company or such Company Subsidiary. The current inventory of the Company and each Company Subsidiary is good and usable and is capable of being consumed and used in the ordinary course of business for the specific purpose for which such inventory was intended to be used at levels sufficient for the continuation of the business of the Company and each Company Subsidiary consistent with past practice.

(s) Contracts. Except as expressly contemplated by the Transaction Documents, the Master Development Agreement, the Hyatt Agreements and/or the Investors Agreement or as disclosed in Part 5(s) of Schedule 7, to the Knowledge of the Company, none of the Company or the Company Subsidiaries is party to any: (i) joint venture agreement or agreement for the acquisition or disposition of any business division; (ii) contract limiting the ability of the Company or any of the Company Subsidiaries to compete with any third party; (iii) debt instrument restricting the declaration or payment of dividends or other distributions; (iv) management or franchise agreements; (v) short-term or long-term incentive plan, deferred compensation plan, retirement plan, or severance, change of control or similar agreement; (vi) contract, the failure of which to be renewed would reasonably be expected to have a Material Adverse Effect; (vii) contract preventing consummation of the Transactions; or (viii) agreements with any of its or their respective affiliates. Except as disclosed in Part 5(s) of Schedule 7, neither the execution and delivery of this Subscription Agreement or the other Transaction Documents nor the consummation of the Transactions will result in (A) any payment becoming due to any employee, consultant or director of the Company or any Company Subsidiary; (B) the provision of any benefits or other rights to any employee, consultant or director of the Company or any Company Subsidiary; (C) the increase, acceleration or provision of any payments, benefits or other rights to any employee, consultant or director of the Company or any Company Subsidiary; or (D) require any contributions or payments to fund any obligations under any written or oral employment, employee benefit, bonus, incentive, deferred compensation, retirement, stock purchase, equity or equity-based compensation, severance, salary continuation, consulting, termination, change in control, welfare benefit, fringe benefit or other compensation plans, policies, agreements, arrangements, practices, or procedures maintained, participated in or contributed to by the Company or any Company Subsidiaries for current or former employees, consultants or directors of the Company or any Company Subsidiary, or with respect to which the Company or any Company Subsidiary has any obligation or liability, contingent or otherwise, for current or former employees, consultants or directors thereof.

(t) Labor Matters. There are no existing or, to the Knowledge of the Company, threatened or imminent strikes, stoppages, or slowdowns in respect of the Company or the Company Subsidiaries relating to the employment of labor, except as would not reasonably be expected to have a Material Adverse Effect. Except as set forth on Part 5(t) of Schedule 7, none of the Company or, to the Knowledge of the Company, any of the Company Subsidiaries has violated any labor or employment laws, rules or regulations, except for such violations or defaults that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(u) Related Party Transactions. Except with respect to the Investors Agreement, this Subscription Agreement, any Transaction Documents or as set forth on Part 5(u) of Schedule 7, no Related Party of any of the Company or the Company Subsidiaries has any direct or indirect interest in (a “Related Party Transaction”) (i) any contract, arrangement or understanding with, or relating to, the Company or the Company Subsidiaries or the properties or assets of the Company or the Company Subsidiaries, (ii) any loan, arrangement, understanding, agreement or contract for or relating to the Company or the Company Subsidiaries or the properties or assets of the Company or the Company Subsidiaries, (iii) any property (real, personal or mixed), tangible or intangible, used or currently intended to be used by the Company or the Company Subsidiaries, (iv) to the Knowledge of the Company, any cause of action or claim whatsoever against any of the Company or the Company Subsidiaries, or (v) any Person that is, or is engaged in business as, a competitor, lessor, lessee, supplier, distributor, sales agent, customer or client of the Company or the Company Subsidiaries (excepting less than 5% stock holdings for investment purposes in securities of publicly held and traded companies). No Related Party to any of the Company or the Company Subsidiaries has made or received any payments not correctly categorized and fully disclosed in the Company’s or the Company Subsidiaries’ books and records in connection with or in any way relating to or affecting any of the Company or the Company Subsidiaries, except as contemplated by the Transaction Documents. As of the Closing Date, the Related Party Transactions specified in Part 5(u) of Schedule 7 will have been terminated without any further liability for the Company or the Company Subsidiaries prior to Closing.

(v) Due Authorization. Each of the Company and the Company Subsidiaries has all necessary power and authority to execute this Subscription Agreement and the Transaction Documents to which it is a party, and, assuming the execution and filing of the deed of amendment in the form attached hereto as Schedule 9 on or before the Closing Date, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Subscription Agreement and the other Transaction Documents by the Company and the Company Subsidiaries (as the case may be), and, assuming the execution and filing of the deed of amendment in the form attached hereto as Schedule 9 on or before the Closing Date, the performance of the Company’s and the Company Subsidiaries’ obligations hereunder and thereunder and the consummation by the Company and the Company Subsidiaries of the transactions contemplated hereby and thereby have been duly authorized and approved by all requisite corporate (or equivalent organizational) and stockholder action (including any shareholders meeting approval), which authorization and approval have not been rescinded, modified or withdrawn in any way, and no other corporate (or equivalent organizational) or stockholder action (including any shareholders meeting approval) on the part of the Company or the Company Subsidiaries is necessary to authorize the execution, delivery, and, assuming the execution and filing of the deed of amendment in the form attached hereto as Schedule 9 on or before the Closing Date, performance by the Company and the Company Subsidiaries of this Subscription Agreement or the other Transaction Documents to which it is a party and the consummation by it of the transactions contemplated hereby and thereby. At the Closing the Company and the Company Subsidiaries will have duly and validly executed the Transaction Documents to which it is a party. The individuals signing each Transaction Document on behalf of the Company and the Company Subsidiaries are authorized to do so on behalf of the Company or the Company Subsidiaries, as applicable. The Transaction Documents constitute legal, valid and binding obligations, enforceable against the Company and the Company Subsidiaries party thereto in accordance with their terms, subject to the effect of Laws relating generally to creditors’ rights and the availability of equitable remedies.

 

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(w) No Stamp Tax. No stamp or other issuance or transfer taxes or duties are required to be paid by or on behalf of the Subscriber in connection with the execution of this Subscription Agreement in order to enforce its rights hereunder or for the issuance by the Company of the Shares or the PIK Dividend Shares.

(x) No Brokers. There are no claims against the Company or, to the Knowledge of the Company, any of the Company Subsidiaries for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or any of the other Transaction Documents (other than fees and commissions payable to the investment banking firms arranging the Newco Credit Facility and underwriting the Newco Notes).

(y) Full Disclosure as to Company and Company Subsidiaries. The Company has made available to the Subscriber or its representatives all the material documents available to the Company that the Subscriber has requested in connection with its due diligence activities, inspections, and studies of the Company and Company Subsidiaries and the entering into this Subscription Agreement and the other Transaction Documents and the consummation of the Transactions. All such documents provided to the Subscriber regarding the Company and Company Subsidiaries, their business and operations and the transactions contemplated hereby, including the schedules to this Subscription Agreement, furnished by or on behalf of the Company do not contain any untrue statement of material fact or omit to state a material fact which statement or omission makes the representations and warranties of the Company in this Section 5 (as supplemented by the Schedule 7) materially misleading.

(z) Full Disclosure as to Real Acquisition. The Company has made available to the Subscriber or its representatives all (i) documents contained as of May 24, 2013 in the electronic dataroom established by the Real Sellers for the benefit of the Company concerning the Real Target Companies (the “Data Room Information”) and (ii) other material documents otherwise relating to or arising from the Real Target Companies in the possession of, or made available to, the Company or its representatives. The Company has delivered on June 19, 2013 to the Subscriber, under cover of a letter of the same date from Cannizzo, Ortiz y Asociados, S.C. to Haynes & Boone, LLC, a true and correct copy of the Data Room Information on a flash drive (the “Real Flash Drive”). The Company and the Subscriber acknowledge and agree that any documents or other information contained on the Real Flash Drive or delivered in paper form under cover of the letter referenced in the previous sentence other than the Data Room Information shall not be deemed to have been provided to, made available to or received by Subscriber for purposes of this Section 5(z). The Company has delivered on June 19, 2013 to the Subscriber true and correct copies of those documents referenced in clause (ii) of the first sentence of this Section 5(z) that were delivered by the Real Sellers in paper form to the Company. The Company has made available to the Subscriber or its representatives true and correct copies of the Real Acquisition Agreement and all transaction documents and agreements (whether written or oral) existing as of the date hereof concerning or related to (including any side letters related thereto) the acquisition of the Real Target Companies. The Company is not in material breach of, and to the Knowledge of the Company, no other party is in material breach of, any representations, warranties covenants or other agreements set forth in the Real Acquisition Agreement.

 

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Without prejudice to the Company’s rights and remedies under this Subscription Agreement (including under Section 10(b) and under applicable law) with respect to any breach by the Subscriber of any of its representations and warranties made in this Subscription Agreement, the Company acknowledges that it understands the meaning and legal consequences of the representations and warranties in this Section 5, and that the Subscriber shall rely upon such representations and warranties in making its investment decision with respect to its subscription for the Shares.

6. Covenants Prior to the Closing.

(a) Exclusivity. From the date hereof through the earlier of the Closing Date and the termination of this Subscription Agreement, (i) neither the Company nor any of the Company Subsidiaries nor any of their respective agents or affiliates will enter into discussions, negotiate, provide information, work or consult with or to any other major international hotel chain comparable to the Subscriber with respect to (a) the development of one or more new luxury all-inclusive resort hotel brands for the operation of any resorts owned, to be owned, operated or to be operated by the Company or (b) an equity investment or an acquisition of any type of interest in the Company or any of the Company Subsidiaries, other than as explicitly contemplated by the Real Acquisition Agreement, the Investors Agreement and the Transaction Documents, or its or their assets, and (ii) neither the Subscriber nor any of its agents or affiliates will enter into discussions, negotiate, provide information, work or consult with or to any other party with respect to the development of one or more new luxury all-inclusive resort hotel brands for the operation of any resorts, to be owned, operated or to be operated (x) by such other party or (y) in Mexico, the Caribbean or South or Central America.

(b) Access and Investigation. Between the date of this Subscription Agreement and the Closing, the Company shall, and shall cause each Company Subsidiary to, (i) afford the Subscriber and its representatives (collectively, the “Subscriber’s Advisors”) full and free access to each of the Company’s and the Company Subsidiaries’ personnel, representatives, business relations, customers, suppliers, partners, assets, properties (including for purposes of subsurface testing), contracts, books and records and other documents and data, ii) furnish the Subscriber and Subscriber’s Advisors with copies of all such contracts, books and records, and other documents and data the Subscriber may reasonably request, and (iii) furnish the Subscriber and Subscriber’s Advisors with such additional financial, legal, tax, operating, and other data and information as Subscriber may reasonably request. With respect to the exchange of competitively sensitive information, including strategic and marketing plans, pricing material and customer specific data, the parties will consult with outside antitrust counsel before undertaking any such exchange. For the avoidance of doubt, each of the Company and the Subscriber shall maintain the confidentiality of all information provided or made available to such party on or prior to the date hereof or pursuant to this Section 6(b) in accordance with Section 7.7 (Confidentiality) of the Investors Agreement, as if such provision were incorporated herein mutatis mutandis.

 

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(c) Notification.

(i) Prior to the Closing, the Company shall promptly (and in any event within 24 hours) notify the Subscriber if the Company becomes aware of any fact or condition that causes or constitutes a breach of or material variance from any representations and warranties of the Company as of the date of this Subscription Agreement, or if the Company becomes aware of the occurrence after the date of this Subscription Agreement of any fact or condition that would cause or constitute a breach of or material variance from any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition (each such pre-Closing notification, a “Notification”). Each Notification shall describe in detail, to the extent known to the Company, the facts or conditions giving rise to the breach or material variance, and shall specifically identify the representation and warranty (or representations and warranties) implicated (including subparts thereof). The Company shall promptly provide subsequent Notifications to the Subscriber to the extent it becomes aware of additional information with respect to any matter contained in any Notification. For the avoidance of doubt, no Notification to the Company shall constitute an update to, modification to or a cure of any provision of any Transaction Documents (including the representations and warranties therein) or any schedules or exhibits thereto.

(ii) Prior to the Closing, the Company shall promptly (and in any event within 24 hours) notify the Subscriber in writing of any breach by the Company of any covenant contained in any Transaction Document. For the avoidance of doubt, no such written notification to the Subscriber shall constitute a cure of any covenant breach.

(d) Agreements Relating to the Real Acquisition. For the period of time between the date hereof and the earlier of the termination of this Subscription Agreement and the Closing Date, the Company shall not enter into any material agreements, take any material action or omission or grant any material waiver relating to the Real Target Companies or the Real Acquisition Agreement, without the prior written consent of the Subscriber.

7. Additional Covenants and Agreements.

(a) Commercially Reasonable Efforts. Each of the parties hereto shall cooperate with the other party and use (and shall cause their respective Subsidiaries to use) their respective commercially reasonable efforts to promptly (i) take, or cause to be taken, all actions, and do, or cause to be done, all things, necessary, proper or advisable to cause the conditions to such party’s obligations to consummate the transactions contemplated hereby to be satisfied as promptly as practicable and to consummate and make effective, in a commercially reasonable manner, the transactions contemplated hereby, including preparing and filing promptly and fully all documentation to effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents (including any required, necessary or advisable filings under applicable regulatory Law or otherwise), and (ii) obtain all approvals, consents, registrations, permits, authorizations and other confirmations from any Governmental Authority necessary, proper or advisable to consummate the transactions contemplated hereby. Each of the parties hereto shall use its commercially reasonable efforts to (A) cooperate in all respects with each other in connection with any filing or submission with a Governmental Authority in connection with the transactions contemplated hereby and in connection with any investigation or other inquiry by or before a Governmental Authority relating to the transactions contemplated hereby, (B) promptly notify the other party of any written communication to that party from any Governmental Authority and permit the other party to review any proposed communication to any of the foregoing, (C) consult with the other party prior to participating in

 

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any substantive meeting, telephone call or discussion with any Governmental Authority in respect of any filings, investigation or inquiry concerning this Subscription Agreement or any of the transactions contemplated hereby and provide the other party the opportunity to attend and participate in any such meeting, telephone call or discussion to the extent permissible and practicable, and (D) furnish the other party with copies of all correspondence, filings, and written communications (or a reasonably detailed summary of any oral communications) between them and their respective representatives on the one hand, and any Governmental Authority or members of their respective staffs on the other hand, with respect to this Subscription Agreement and any of the transactions contemplated hereby; provided that proprietary or confidential information may be reasonably redacted from correspondence, filings and written communications provided from one party to the other pursuant to the provisions of this Section 7 of the Agreement. Notwithstanding anything to the contrary in this Subscription Agreement, in connection with any filing or submission required or action to be taken by either the Subscriber or the Company to consummate the transactions contemplated hereby, in no event shall either party be obligated (x) to propose or agree to accept any undertaking or condition, to enter into any consent decree, to make any divestiture or accept any operational restriction or take or commit to take any action that individually or in the aggregate (I) is or would reasonably be expected to be materially adverse in the reasonable judgment of the affected party to (1) the Company and the Company Subsidiaries, taken as a whole, any of its affiliates or the Subscriber or any of its affiliates, either before or after giving effect to the Transactions, or (2) the Company’s ownership or operation of any material portion of the business or assets of the Company and the Company Subsidiaries, taken as a whole or (II) would reasonably be expected to deny the Subscriber or the Company the material benefit of the bargains contemplated by the transactions contemplated by this Subscription Agreement (a “Materially Burdensome Condition”) or (y) to waive any of the conditions to the Closing provided in Section 8.

(b) Public Announcements. The initial press releases with respect to the execution of this Subscription Agreement issued by each of the parties shall be reasonably agreed upon by the Subscriber and the Company. Thereafter, neither the Company or any Company Subsidiary, on the one hand, nor the Subscriber, on the other hand, shall issue or cause the publication of any press release or other public announcement (to the extent not previously issued or made in accordance with this Subscription Agreement) with respect to the transactions contemplated by this Subscription Agreement without the prior consent of the other (which consent shall not be unreasonably withheld, conditioned or delayed). Nothing in this Section 7(b) shall limit a party’s ability to make any disclosure required by Law, by applicable fiduciary duties or by any applicable listing agreement with a national securities exchange or interdealer quotation service as determined in the good faith judgment of the party proposing to make such release or other public announcement (in which case such party shall not issue or cause the publication of such press release or other public announcement without prior consultation with the other party, if practicable) or by the request of any Governmental Authority or post-Closing as permitted by and pursuant to the Investors Agreement.

(c) Restrictions on Transfer. The Subscriber acknowledges that it is aware that the Shares have not been and will not be registered under the Securities Act as of the Closing Date and that there are substantial restrictions on the transferability of the Shares as provided in the Investors Agreement, the Company’s Articles of Association and under Dutch law, the Securities Act and other applicable securities Laws.

 

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8. Conditions to Closing; Closing Deliveries.

(a) Conditions to Obligations of the Company. The obligations of the Company to be performed at the Closing hereunder are subject to the satisfaction, or waiver by the Company, of each of the following conditions:

(i) the Regulatory Approvals and the Third Party Approvals shall have been received or otherwise obtained, or the relevant waiting period(s) shall have expired or been terminated, in each case, without any Materially Burdensome Condition having been imposed, or being reasonably expected to be imposed, in connection with obtaining any of the Regulatory Approvals;

(ii) no action or proceeding before any court or Governmental Authority shall have been instituted seeking to restrain, prohibit or otherwise interfere with this Subscription Agreement or the Transactions;

(iii) the Subscriber shall have performed in all material respects all of its obligations required to be performed by it on or prior to the Closing Date;

(iv) the representations and warranties of the Subscriber contained in this Subscription Agreement or any certificate delivered pursuant hereto shall be true and correct in all material respects (without giving effect to any limitation or qualification as to “materiality” (including the word “material”) or “Material Adverse Effect” set forth therein) both when made and on the Closing Date;

(v) concurrently with the Closing, (A) the transactions contemplated by the Sale and Purchase Agreement, the Real Acquisition Agreement and the Jamaica Acquisition Agreement shall have been consummated in accordance with the terms thereof (or, in the case of the Jamaica Acquisition Agreement, the undertaking contemplated by Section 9.2 of the Jamaica Acquisition Agreement shall have been provided in accordance with such section), (B) the Company or a Subsidiary thereof shall have entered into the Newco Credit Facility on terms substantially consistent with the terms of the Credit Facility Term Sheet and all conditions to drawing under the Newco Credit Facility in the amounts contemplated in the Sources column of the Schedule of Sources and Uses attached hereto as Schedule 5 shall have been satisfied or waived by the lenders thereunder, (C) the Company or a Company Subsidiary shall have issued the Newco Notes on terms substantially consistent with the Draft Description of Notes, and (D) the Company and the applicable Company Subsidiaries and the other parties thereto shall have entered into the Termination Agreements;

(vi) the Subscriber shall have delivered to the Company a certificate, executed on its behalf by a duly authorized representative, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in Section 8(a)(iii) through and including (v);

(vii) the Subscriber shall have executed and delivered true and correct copies of the Investors Agreement to the Company; and

 

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(viii) Hyatt Franchisor shall have executed and delivered to the Company each of the Hyatt Agreements and the Master Development Agreement to which it is a party.

(b) Conditions to Obligations of the Subscriber. The obligations of the Subscriber to be performed at the Closing hereunder are subject to the satisfaction, or waiver by such Subscriber, of each of the following conditions:

(i) the Regulatory Approvals shall have been received or otherwise obtained, or the relevant waiting period(s) shall have expired or been terminated, in each case, without any Materially Burdensome Condition having been imposed, or being reasonably expected to be imposed, in connection with obtaining any of the Regulatory Approvals;

(ii) no action or proceeding before any court or Governmental Authority shall have been instituted seeking to restrain, prohibit or otherwise interfere with this Subscription Agreement or the Transactions;

(iii) the Company shall have performed in all material respects all of its obligations required to be performed by it on or prior to the Closing Date;

(iv) since the date of this Subscription Agreement, there shall not have occurred a Material Adverse Change;

(v) since the date of this Subscription Agreement, the Company and the Company Subsidiaries shall have been operated in the ordinary course of business, consistent with past practice, and consistent with the existing annual budgets attached as Schedule 8 attached hereto, except for any transactions expressly contemplated by the Transaction Documents;

(vi) (A) other than the Company Fundamental Representations, the representations and warranties of the Company contained in this Subscription Agreement or any certificate delivered pursuant hereto shall be true and correct in all material respects (provided that any such representations and warranties already qualified by terms such as “material” or “Material Adverse Effect” shall be true in all respects as so qualified) both when made and on the Closing Date, and (B) the Company Fundamental Representations shall be true and correct in all respects both when made and on the Closing Date;

(vii) the Subscriber shall have approved the final Sale and Purchase Agreement, such approval not to be unreasonably withheld or delayed;

(viii) the Newco Credit Agreement shall contain terms and conditions substantially consistent with the Credit Facility Term Sheet, as determined by Subscriber in its reasonable discretion, and the terms, conditions and other provisions of the agreements, certificates, instruments and other documents entered into by the Company and the Company Subsidiaries in connection with the transactions contemplated by the Newco Credit Facility shall not in any way materially and adversely affect the rights and benefits of the Subscriber or its affiliates under this Subscription Agreement, the Investor Agreement, any Hyatt Agreement, the Master Development Agreement or any of the agreements, certificates, instruments and other documents contemplated thereby (including any amendments, waivers or other changes thereto);

 

 

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(ix) the Newco Notes Indenture shall contain terms and conditions substantially consistent to the Description of Notes, as determined by the Subscriber in its reasonable discretion;

(x) the blended interest rate, based on the weighted average of the interest rates and balances of the Initial Term Loans (giving effect to the LIBOR floor and interest margin provided in the Newco Credit Agreement for the Initial Term Loans and excluding any revolving loans) and the Newco Notes, shall not exceed 8.00% per annum, as certified in writing by the Company’s Chief Financial Officer not later than two days prior to the Closing Date;

(xi) the Company shall have delivered to the Subscriber the Deliverable Financial Statements proposed to be included in the Newco Notes Offering Documents and any Marketing Materials no later than five (5) Business Days prior to the date of the Preliminary Offering Memorandum and the Subscriber shall have approved such financial statements, such approval not to be unreasonably withheld or delayed;

(xii) the Company shall have completed a review of the carrying value of the assets acquired from its Predecessor under the Sale and Purchase Agreement which shall have been reviewed by its independent auditors, Deloitte & Touche, and any adjustments required under IFRS as a result of such review shall have been booked as a first quarter of 2013 adjustment in the books of the Predecessor and will also be reflected in the Deliverable Financial Statements;

(xiii) the Subscriber shall have approved the Termination Agreements, including all exhibits, schedules and other documents referenced therein, such approval not to be unreasonably withheld or delayed;

(xiv) concurrently with the Closing, (A) the transactions contemplated by the Sale and Purchase Agreement, the Real Acquisition Agreement and the Jamaica Acquisition Agreement shall have been consummated substantially in accordance with the terms thereof (or, in the case of the Jamaica Acquisition Agreement, the undertaking contemplated by Section 9.2 of the Jamaica Acquisition Agreement shall have been provided in accordance with such section), (B) none of the Company or any Company Subsidiary shall have amended any of the material terms of or waived any material conditions to the closing of the transactions contemplated under the Sale and Purchase Agreement and the Jamaica Acquisition Agreement unless such waiver has been previously approved in writing by the Subscriber, (C) all conditions to drawing under the Newco Credit Facility in the amounts contemplated in the Sources column of the Schedule of Sources and Uses attached hereto as Schedule 5 shall have been satisfied or waived by the lenders thereunder, (D) the Company or a Company Subsidiary shall have issued the Newco Notes, and (E) the Company and the other parties thereto shall have entered into the Termination Agreements;

 

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(xv) The Company’s shareholders and board of directors shall have approved and consented to the Company’s Articles of Association, the issuance of the Shares and the designees to the Company’s board of directors pursuant to the Investors Agreement concurrently with the Closing;

(xvi) the Company shall have amended and restated its current Articles of Association by means of a notarial deed of amendment in the form attached hereto as Schedule 9;

(xvii) the Company shall have delivered to the Subscriber resignations of those directors of the Company and the Company Subsidiaries set forth on Schedule 10 as of the Closing Date;

(xviii) the Company shall have delivered to the Subscriber a certificate, executed on its behalf by a duly authorized representative, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in Sections 8(b)(iii) through and including Section 8(b)(xv);

(xix) the Company and the other parties thereto (other than Subscriber) shall have executed and delivered to the Subscriber a true and correct copy of the Investors Agreement;

(xx) the Company shall have paid off in full the indebtedness of the Indebted Company Subsidiaries under that certain Agreement of Novation of Credit Agreement (Contrato de Novación Modificativa no Extintiva de Contrato de Crédito), dated as of July 30, 2010, among Playa Hotels & Resorts, S.L. and certain of its subsidiaries, as borrowers, and the lenders named therein;

(xxi) the Company shall have delivered to the Subscriber evidence of the receipt of the Regulatory Approvals and Third Party Approvals;

(xxii) the Company shall have delivered to the Subscriber the favorable opinion of NautaDutilh New York P.C., Dutch counsel to the Company, as to (A) the valid issuance of the Shares as of Closing, (B) the due authorization of the Company to execute this Subscription Agreement and the Investors Agreement and consummate the transactions contemplated hereby and thereby, (C) the due organization and valid existence of the Company as of the Closing, and (D) the capitalization of the Company as of the Closing, in a form reasonably acceptable to the Subscriber;

(xxiii) the Company shall have delivered to the Subscriber certificates of insurance maintained with financially sound and reputable insurance companies, evidencing policies of property and general liability insurance, lawfully issued and enforceable, on all hotels and resorts owned by the Real Target Companies and their respective subsidiaries dated within ten (10) calendar days of the Closing Date and valid as of the Closing Date, insuring each of the Real Target Companies and their respective subsidiaries against all such risks in amounts and on such terms and subject to such conditions as are reasonably satisfactory to the Subscriber, with no coverage exceptions relating to any pre-existing conditions disclosed to such insurance companies;

 

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(xxiv) the Company’s shareholders shall have adopted resolutions delegating authority to the Company’s board of directors to (x) resolve to issue Preferred Shares, and to exclude pre-emptive rights in connection therewith, for the purposes of paying PIK Dividends in accordance with the Company’s Articles of Association, (y) resolve to issue Ordinary Shares, and to exclude pre-emptive rights in connection therewith, in connection with the conversion of Preferred Shares into Ordinary Shares in accordance with the Articles of Association and (z) resolve to issue Ordinary Shares, and to exclude pre-emptive rights in connection therewith, for the purposes of complying with the Company’s obligations under Sections 3(d), 3(e) and 10(c) of this Subscription Agreement, in the case of each of foregoing clauses (x), (y) and (z), in the form set forth on Schedule 20.

(xxv) the Company’s board of directors shall have adopted resolutions approving the form of resolutions by which the board of directors will (x) resolve to issue Preferred Shares, and to exclude pre-emptive rights in connection therewith, for the purposes of paying PIK Dividends in accordance with the Articles of Association, (y) resolve to issue Ordinary Shares, and to exclude pre-emptive rights in connection therewith, in connection with the conversion of Preferred Shares into Ordinary Shares in accordance with the Articles of Association and (z) resolve to issue Ordinary Shares, and to exclude pre-emptive rights in connection therewith, for the purposes of complying with the Company’s obligations under Sections 3(d), 3(e) and 10(c) of this Subscription Agreement, in the case of each of foregoing clauses (x), (y) and (z), in the form set forth on Schedule 21;

(xxvi) the Company, the Subscriber and Compañia Hotelera Gran Playa Real S. de R.L de C.V. shall have entered into the power of attorney granting NautaDutilh N.V. the power to execute deeds of issuance with respect to future issuances of shares described on Schedules 20 and 21 in the form set forth on Schedule 22;

(xxvii) the Company shall have delivered to the Subscriber each of the Hyatt Agreements and the Master Development Agreement to which the Company and each Company Subsidiary is a party; and

(xxviii) each of the Preliminary Offering Memorandum and the Final Offering Memorandum shall contain a disclaimer of responsibility of the Hyatt Franchisor, the Subscriber, each of the other Investors (as defined in the Investors Agreement) and their respective affiliates, substantially in the form of Schedule 23 attached hereto.

(c) Actions by the Subscriber at the Closing. At the Closing, the Subscriber shall take the following actions:

(i) deliver the Capital Contribution (less the amount of any Hyatt Advance Funding) by wire transfer in immediately available funds in accordance with instructions provided by the Company; and

(ii) take such other actions as may be reasonably requested by the Company to consummate or further evidence the investment by the Subscriber in the Shares.

 

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(d) Actions by the Company at the Closing. At the Closing, the Company shall take the following actions:

(i) issue to the Subscriber the Shares, which issuance shall be evidenced by providing to the Subscriber a copy of the notarial deed of issue executed by the Company;

(ii) register the Subscriber’s shareholdings in the shareholders register of the Company;

(iii) use the proceeds from the issue of the Shares and the Newco Notes and the Initial Term Loans under the Newco Credit Agreement in the manner described in the Schedule of Sources and Uses attached hereto as Schedule 5; and

(iv) take such other actions as may be reasonably requested by the Subscriber to consummate or further evidence the transactions contemplated hereby.

9. Termination.

(a) This Subscription Agreement may be terminated at any time prior to the Closing:

(i) by mutual written consent of the Company and the Subscriber;

(ii) (A) by the Company, if the Subscriber breaches or fails to perform in any respect any of its representations, warranties or covenants contained in this Subscription Agreement or any other Transaction Document and such breach or failure to perform (I) would give rise to the failure of a condition set forth in Section 8(a), (II) cannot be or has not been cured within 15 calendar days following delivery of written notice of such breach or failure to perform and (III) has not been waived by the Company or (B) by the Subscriber, if the Company breaches or fails to perform in any respect any of its representations, warranties or covenants contained in this Subscription Agreement or any other Transaction Document and such breach or failure to perform (x) would give rise to the failure of a condition set forth in Section 8(b), (y) cannot be or has not been cured within 15 calendar days following delivery of written notice of such breach or failure to perform and (z) has not been waived by the Subscriber;

(iii) (A) by the Company, if any of the conditions set forth in Section 8(a) shall have become incapable of fulfillment prior to September 30, 2013. (the “Termination Date”) or (B) by the Subscriber, if any of the conditions set forth in Section 8(b) shall have become incapable of fulfillment prior to the Termination Date; provided, that the right to terminate this Subscription Agreement pursuant to this Section 9(a)(iii) shall not be available if the failure of the party so requesting termination to fulfill any of its obligations under this Subscription Agreement shall have been the cause of the failure of such condition to be satisfied on or prior to such date;

(iv) by either the Company or the Subscriber if the Closing shall not have been consummated by the Termination Date; provided, that the right to terminate this Subscription Agreement under this Section 9(a)(iv) shall not be available if the failure of the party so requesting termination to fulfill any of its obligations under this Subscription Agreement shall have been the cause of the failure of the Closing to be consummated on or prior to such date; or

 

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(v) by either the Company or the Subscriber in the event that any Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Subscription Agreement and such order, decree, ruling or other action shall have become final and nonappealable; provided, that the party so requesting termination shall have complied with Section 7(a).

The party seeking to terminate this Subscription Agreement pursuant to this Section 9(a) (other than Section 9(a)(i)) shall give prompt written notice of such termination to the other party.

(b) Effect of Termination. In the event of termination of this Subscription Agreement by either the Company or the Subscriber as provided above, this Subscription Agreement shall immediately become void and of no further force and effect, except that the provisions of this Section 9, Section 5(x) relating to broker’s fees, Section 7(b) relating to public announcements, Section 10 relating to indemnification, Section 11(a) relating to notices, Section 11(f) relating to fees and expenses and Section 11(c) relating to governing law and arbitration (together with any defined terms herein to the extent used in any of the foregoing provisions) shall survive the termination hereof in accordance with their respective terms; provided, however, that neither of the Company or the Subscriber shall be released from any liabilities or damages arising out of a material breach of any covenant or agreement set forth in this Subscription Agreement that occurred prior to the termination hereof. Each of the Company’s and the Subscriber’s right of termination under this Section 9 is in addition to any other rights it may have under this Subscription Agreement, any other Transaction Document or otherwise, and the exercise of a right of termination will not be an election of remedies.

10. Indemnification.

(a) Survival of Representations and Warranties; Covenants. The representations and warranties in this Subscription Agreement, the other Transaction Documents and in any certificate or instrument delivered by the Company or the Subscriber to the other party hereto in connection with this Subscription Agreement and the other Transaction Documents shall survive the Closing as follows (i) the Company Fundamental Representations shall terminate on the date that is eighteen (18) months after the Closing Date; (ii) the Company’s representation in the first sentence of Section 5(r) (Title to Assets) shall survive indefinitely, (iii) the Company’s representations and warranties contained in Section 5(q) in respect of taxes payable and/or or reserves required to be reflected prior to Closing shall survive until the expiration of applicable statutes of limitations under applicable tax Laws, and (iv) all other representations and warranties of each party hereto shall terminate on the date that is twelve (12) months after the Closing Date; provided that each representation or warranty, and the related indemnification rights and other available remedies with respect thereto, shall survive the time at which it would otherwise terminate pursuant to this Section 10(a) (until fully resolved) if notice of an inaccuracy or breach or potential inaccuracy or breach thereof has been given within the applicable time periods to (A) the Company, in the case of a representation or warranty made by Company or (B) the Subscriber, in the case of a representation or warranty made by the Subscriber. The representations and warranties in this Subscription Agreement and in any certificate or instrument delivered by the Subscriber or the Company to any other party hereto in connection with this Subscription Agreement, and the rights of any party in connection with a

 

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breach or inaccuracy thereof, shall in no event be affected by (I) any investigation, inquiry or examination made by, for or on behalf of the Subscriber or the Company, (II) the actual or constructive knowledge of any of the Subscriber or the Company, or (III) the acceptance by the Subscriber or the Company of any certificate hereunder. All covenants and agreements of the parties contained in this Subscription Agreement shall survive the Closing for the applicable statute of limitations.

(b) By Subscriber. The Subscriber hereby agrees to indemnify and hold harmless the Company and its shareholders (other than the Subscriber) and its directors, officers and affiliates, and any employees or agents of any of the foregoing (the “Company Indemnified Parties”), in respect of all claims, actions, demands, losses, diminution in value, costs, expenses and damages (including amounts paid in respect of judgments, fines, penalties or settlement of litigation, and legal fees and expenses reasonably incurred in connection with any pending or threatened litigation or proceeding) (collectively, “Losses”) incurred by any of the Company Indemnified Parties, whether involving a third-party claim or a claim solely between the parties, to the extent (but only to the extent) resulting from or based upon, in whole or in part, any inaccuracy in any of the Subscriber’s representations and warranties or certifications or any breach or failure by the Subscriber to comply with any of its representations and warranties or agreements contained in this Subscription Agreement; provided that in no event shall the Subscriber be liable hereunder for breaches of its representations and warranties hereunder in excess of US$50,000,000. Any amounts owing from the Subscriber to a Company Indemnified Party shall be payable by the Subscriber in immediately available funds.

(c) By the Company.

(i) The Company hereby agrees to indemnify and hold harmless the Subscriber, in respect of all Losses incurred by the Subscriber, whether involving a third-party claim or a claim solely between the parties, to the extent (but only to the extent) resulting from or based upon, in whole or in part, (A) any inaccuracy in any of the Company’s representations and warranties or any breach or failure by the Company to comply with any of its representations and warranties or agreements contained in this Subscription Agreement (except for any Losses resulting from or based upon the matters covered in Section 10(c)(iii), the sole remedy for which is addressed in Section 10(c)(iii)) and (B) any DR Indemnified Matter; provided that in no event shall the Company be liable to the Subscriber (1) under Section 10(c)(i)(B) unless and until the amount of Losses claimed by the Subscriber under Section 10(c)(i)(B) for any DR Indemnified Matter exceeds US$500,000, and then the Company shall be liable only to the extent the aggregate amount of Losses exceeds such amount, (2) under Section 10(c)(i)(A) unless and until the amount of Losses claimed by the Subscriber under Section 10(c)(i)(A) (inclusive of Losses arising from any DR Indemnified Matter) exceeds US$10,000,000, and then the Company shall be liable only to the extent the aggregate amount of Losses exceeds such amount, and (3) for any amount in excess of US$50,000,000 (except with respect to the Company’s breach of a Company Fundamental Representation); provided however that with respect to any Losses resulting from the Company’s breach of one or more Company Fundamental Representations, the maximum amount of the Company’s liability for such breaches shall not exceed the Capital Contribution. For the avoidance of doubt, in no event shall the Company be liable for indemnification obligations under this Section 10(c)(i) for an aggregate amount in excess of the Capital Contribution.

 

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(ii) The Company agrees to indemnify, defend and hold harmless the Subscriber, its affiliates, their respective directors, officers and employees and any person that controls the Subscriber within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and the successors and assigns of all the foregoing persons, from and against any loss, damage, expense, liability or claim as incurred (including the reasonable cost of investigating, preparing or defending against any such loss, damage, expense, liability or claim or any litigation, investigation or proceeding, whether commenced or threatened, including reasonable fees and disbursements of counsel) that, jointly or severally, the Subscriber, each such affiliate, director, officer, employee or any such controlling person may incur under the Securities Act, the Exchange Act or other federal, state or foreign statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such loss, damage, expense, liability or claim (or actions in respect thereof) arises from or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Newco Notes Offering Documents, any amendment or supplement thereto, or in any materials or information provided to investors in the Newco Notes Offering by, or with the approval of, the Company in connection with the marketing of the Newco Notes Offering (“Marketing Materials”) including any roadshow or investor presentations made to investors by the Company (whether in person or in electronic form), or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in the Newco Notes Offering Documents or any Marketing Materials, or necessary to make the statements made therein, in light of the circumstances under which they were made or at the time of sale of the Newco Notes or the closing time of the Newco Notes Offering, not misleading, and to reimburse the Subscriber, each such affiliate, director, officer, employee or any such controlling person for any and all expenses (including the fees and disbursements of counsel) as such expenses are incurred by the Subscriber, each such affiliate, director, officer, employee or any such controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action, except insofar as any such loss, damage, expense, liability or claim arises from or is based upon any untrue statement or alleged untrue statement of a material fact or omission or alleged omission made in reliance upon and in strict conformity with written information furnished to the Company by the Subscriber or any such affiliate or its respective representatives or advisors expressly for use in the Newco Notes Offering Documents; provided, however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Subscriber expressly for use in the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum (or any amendment or supplement thereto). It is agreed and understood that the Subscriber’s review and approval of the materials referenced in Section 8(b)(xi) is for purposes of the Subscriber’s evaluation of its investment in the Shares and that such review and approval is not, and the Company shall not in any manner characterize such review and approval as, an endorsement, affirmation or other indication of agreement by the Subscriber with such materials. For the avoidance of doubt, the indemnity provided in this Section 10(c)(ii) shall not be subject to the deductible and cap limitations set forth in Section 10(c)(i).

 

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(iii) The Company hereby agrees to indemnify and hold harmless the Subscriber in respect of any Losses suffered by the Subscriber (including, without limitation, the Subscriber’s pro rata share on an As-Converted Basis (as defined in the Investors Agreement) of Losses suffered by the Company or the Company Subsidiaries) resulting from, based upon or related to, in whole or in part, failure of the Company or the Company Subsidiaries or any other Person that is or has been affiliated with the Company to (x) timely pay or reserve, or cause to be paid or reserved, all taxes required to be paid or reserved for by any of them in relation to the Marketing Company Structure prior to the Closing and (y) accurately prepare and timely file, or cause to be accurately prepared and timely filed, with the appropriate taxing authorities all required tax returns related thereto; provided that in no event shall the Company be liable to the Subscriber under this Section 10(c)(iii) for any amount in excess of US$20,000,000. Subscriber’s sole remedy for the Losses described in this Section 10(c)(iii) is set forth in this Section 10(c)(iii).

(iv) The Company hereby agrees to indemnify and hold harmless the Subscriber in respect of the Subscriber’s Grossed-Up Share of Losses suffered by the Company resulting from any payments that the Company is required to make pursuant to Section 11.2(b) of the Sale and Purchase Agreement. For the avoidance of doubt, the indemnity provided in this Section 10(c)(iv) shall not be subject to the deductible and cap limitations set forth in Section 10(c)(i). For purposes of this Section 10(c)(iv), the “Grossed-Up Share” of Losses shall be equal to the sum of (A) the Subscriber’s pro rata share on an As-Converted Basis of the Losses suffered by the Company, plus (B) the product of (x) the Subscriber’s aggregate ownership percentage of the Company on an As Converted Basis multiplied by (y) the Subscriber’s pro rata share on an As-Converted Basis of the Losses suffered by the Company.

(v) Any amounts owing from the Company to the Subscriber pursuant to this Section 10(c) shall be payable, at the election of the Company, in (A) immediately available funds, and/or (B) so long as the Fair Market Value of the Ordinary Shares exceeds US$3.50 per share (as adjusted for stock splits, combinations and other similar events relating to the Ordinary Shares and measured as of the date that Fair Market Value is established pursuant to this Section 10(c)) (the “Minimum FMV”), in Ordinary Shares of the Company issued to Subscriber pursuant to the terms of the Company’s Articles of Association and the Investors Agreement, where the number of Ordinary Shares to be issued to the Subscriber shall be determined on the basis of the Fair Market Value of such shares at the time of such issuance; provided, however, that if the Company is prohibited from making any such payment in immediately available funds due to a Blockage Event, then the Subscriber shall have the right to require the Company to make such payment in Ordinary Shares pursuant to clause (B) above (regardless of whether the Fair Market Value exceeds the Minimum FMV). For purposes of this Section 10(c), the “Fair Market Value” of the Ordinary Shares shall be equal to: (I) the amount agreed by the Company and the Subscriber, (II) if no agreement is reached within 15 calendar days of the election by the Company to pay in Ordinary Shares, the average of the amounts determined by two separate Valuation Experts, one selected by the Company and one selected by the Subscriber, which selections must be made within 25 calendar days of the election by the Company to pay in Ordinary Shares, unless the higher of the two valuations exceeds the lower valuation by more than ten percent, or (III) if no amount is determined pursuant to clause (I) or (II), the amount that is the average of the two valuations that are the closest to each other of: (x) the valuation determined of a third Valuation Expert selected within 15 calendar days by the two

 

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existing Valuation Experts, (y) the valuation determined by the Company’s Valuation Expert, and (z) the valuation determined by the Subscriber’s Valuation Expert. Any Valuation Experts used by the Parties shall be requested to submit their determination in writing within 30 calendar days of their engagement. Each party shall pay the fees and expenses of its own Valuation Expert and one half of the fees and expenses of any third Valuation Expert. For the avoidance of doubt, if the Fair Market Value of the Ordinary Shares is equal to or less than US$3.50 per share (as adjusted for stock splits, combinations and other similar events relating to the Ordinary Shares) at the time Fair Market Value is determined in accordance with this Section 10(c), then such payment must be paid in immediately available funds and cannot be paid in Ordinary Shares of the Company.

Subject to Section 10(a), the indemnification obligations in this Section 10 shall survive the Closing. For the avoidance of doubt, for the sole purpose of calculating the amount of any indemnifiable Losses under this Section 10 (and not for determining whether or not any breaches of representations and warranties have occurred), the representations and warranties contained in this Subscription Agreement shall be deemed to have been made without any qualifications as to materiality, or similar qualifications and, without limiting the foregoing, the words “material” and words of similar import shall be deemed deleted from any such representation, warranty, covenant or agreement for these purposes.

(d) Exclusion from Limitations. Notwithstanding anything herein to the contrary, any claims based on a finding of fraud, intentional misrepresentation or willful misconduct shall not be subject to any limitations under this Section 10.

(e) Payments. Once a Loss is agreed to by the indemnifying party or finally adjudicated to be payable pursuant to this Section 10, the indemnifying party shall satisfy its obligations either within 5 calendar days of such agreement of adjudication by wire transfer of immediately available funds, or if the Company or the Subscriber elects to satisfy such an obligation in whole or in part through the issuance of Ordinary Shares pursuant to Section 10(c), then the Company shall issue such Ordinary Shares to the Subscriber within 20 calendar days of such agreement or adjudication.

11. Miscellaneous.

(a) Notices. Notices to the Company and to the Subscriber shall be sent to their respective addresses as set forth on Schedule 12 attached to this Subscription Agreement. The Company or the Subscriber may require notices to be sent to a different address by giving notice to the other parties in accordance with this Section 11(a). Any notice or other communication required or permitted hereunder shall be in writing, and shall be deemed to have been given upon receipt if and when delivered personally, sent by facsimile transmission (the confirmation being deemed conclusive evidence of such delivery) or by courier service or three Business Days after being sent by registered or certified mail (postage prepaid, return receipt requested), to such parties at such address.

 

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(b) Title and Section Headings. The title and section headings set forth in this Subscription Agreement are for convenience only and shall not be considered as part of this Subscription Agreement in any respect, nor shall they in any way affect the substance of any provisions contained in this Subscription Agreement.

(c) Governing Law; Arbitration. This Subscription Agreement shall be governed by and construed in accordance with Dutch law. The Parties agree that any dispute in connection with this Subscription Agreement shall be exclusively and finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute (Nederlands Arbitrage Instituut) (the “NAI”) as at present in force. The arbitral proceedings and all documents delivered to or by the arbitrators shall be conducted in English. The place of arbitration shall be Amsterdam. The arbitral tribunal shall comprise three arbitrators. Each Party shall appoint one arbitrator and the NAI shall appoint a third arbitrator who shall be the chairman of the arbitration tribunal. If a Party has not appointed an arbitrator within 30 days of having requested or received notice of the arbitration, such arbitrator shall be appointed by the NAI. The arbitral tribunal shall decide in accordance with Dutch law. The Parties shall not be precluded from applying for injunctive relief in summary proceedings (kort geding) before any competent court instead of arbitrators. The Parties agree that notifications of any proceedings, reports, communications or any other documents shall be sent as indicated in Section 9.1 of the Investors Agreement. The arbitration panel may only award damages as provided for under the terms of this Subscription Agreement, it being understood that damages in this Subscription Agreement shall have the meaning as defined in Article 6:96 of the Dutch Civil Code, but excluding consequential damages, indirect damages, loss of opportunity and punitive damages. The Parties are obligated to voluntarily fulfill the arbitration award as soon as it becomes final. The arbitration award must be in writing, must provide in reasonable detail the reasoning of the award and must be issued within a six-month period as of the date in which the last of the arbitrators accepted the appointment. In the event of any conflict between the rules of the NAI and any provisions of this Subscription Agreement, this Subscription Agreement shall govern.

(d) Further Assurances. Each of the Parties shall perform such further acts and execute such further documents as may reasonably be necessary to carry out and give full effect to the provisions of this Subscription Agreement and the intentions of the parties as reflected hereby.

(e) Severability. If any provision of this Subscription Agreement is held to be unenforceable under applicable law, then such provision shall be excluded from this Subscription Agreement and the remainder of this Subscription Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms; provided, however, that in such event this Subscription Agreement shall be interpreted so as to give effect, to the greatest economic and legal extent consistent with and permitted by applicable law, to the meaning and intention of the excluded provision.

(f) Expenses. Each Party shall bear its respective legal, auditors’ and financial advisors’ fees and other expenses incurred with respect to this Subscription Agreement and the transactions contemplated hereby.

(g) Counterparts. This Subscription Agreement may be executed in several counterparts, and all such executed counterparts shall constitute one agreement, binding on all the Parties, even though all parties are not signatory to the original or the same counterpart.

 

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(h) Binding Obligation; Assignment. This Subscription Agreement shall be binding upon, and inure to the benefit of, the Parties, their successors, heirs, legatees, devisees, permitted assigns, legal representatives, executors and administrators, except as otherwise provided herein. This Subscription Agreement and the rights hereunder shall not be assignable or transferable by the Subscriber (other than to an affiliate of the Subscriber), in whole or in part, without the written consent of the Company (which consent may be withheld in the Company’s sole and absolute discretion).

(i) Amendment or Modification. This Subscription Agreement may be amended or modified from time to time only by a written instrument executed and agreed to by each of the Parties.

(j) Civil Notary. Each of the Company and the Subscriber is aware of the fact that the civil law notary who will execute the deed of issue works with NautaDutilh N.V., Dutch counsel to the Company that is advising the Company in the transactions contemplated by this Subscription Agreement. With reference to the Code of Conduct (Verordening beroeps- en gedragsregels) established by the Royal Notarial Professional Organisation (Koninklijke Notariële Beroepsorganisatie), the Company and the Subscriber hereby agree (i) that the civil law notary shall execute any notarial deeds related to this Subscription Agreement and (ii) that the Company is assisted and represented by NautaDutilh N.V. in relation to this Subscription Agreement and any agreements that may be concluded, or disputes that may arise, in connection therewith.

(k) General Interpretative Principles. For purposes of this Subscription Agreement, except as otherwise expressly provided or unless the context otherwise requires:

(i) the terms defined in this Subscription Agreement include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender;

(ii) references to “Articles,” “Sections” or “clauses” and other subdivisions without reference to a document are designated Articles, Sections, clauses and other subdivisions of this Subscription Agreement;

(iii) the words “herein,” “hereof,” “hereunder,” and other words of similar import refer to this Subscription Agreement as a whole and not to any particular provision;

(iv) the term “include, “includes,” or “including” shall be deemed to be followed by the words “without limitation”; and

(v) references to “US$” or “Dollars” means United States Dollars.

 

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(l) Certain Definitions. As used in this Subscription Agreement, the following terms shall have the following meanings:

(i) “Advance Funding Agreement” means the Advance Funding Agreement, dated as of the date hereof, by and between the Company and Hyatt International Corporation.

(ii) “Anti-Corruption Laws” means (i) the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder, (ii) any applicable Laws and regulations of Mexico implementing the OECD Convention on Combating Bribery of Foreign Officials or other applicable anti-corruption or anti-bribery provisions in the Laws of Mexico, and (iii) any other applicable law in any applicable jurisdiction that is broadly equivalent thereto.

(iii) “Assets” means all of the assets (real and personal, tangible and intangible, including all intellectual property) owned, leased or otherwise held for use by the Company and the Company Subsidiaries.

(iv) “Balance Sheet” has the meaning set forth in Section 5(o).

(v) “Blockage Event” means, at any time, that (i) the Company does not have sufficient funds legally available under applicable restrictions contained under Dutch Law; or (ii) such cash payment is not permitted under the Company’s arrangements for debt for borrowed money (including, without limitation, the Newco Credit Agreement or the Newco Notes).

(vi) “Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in the City and State of New York.

(vii) “Capital Contribution” has the meaning set forth in Section 1(a).

(viii) “Closing” has the meaning set forth in Section 2.

(ix) “Closing Date” has the meaning set forth in Section 2.

(x) “Company” has the meaning set forth in the Preamble.

(xi) “Company Fundamental Representations” means, collectively, the representations and warranties made by the Company in Sections 5(a) (Valid Issuance), 5(d) (Organization), 5(f) (Capitalization), and 5(v) (Due Authorization).

(xii) “Company Indemnified Parties” has the meaning set forth in Section 10(b).

(xiii) “Company Subsidiaries” has the meaning set forth in Section 5(e).

(xiv) “Company’s Articles of Association” means the articles of association of the Company as to be amended in conformity with the draft deed of amendment attached hereto as Schedule 9.

 

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(xv) “Conditions” has the meaning set forth in Section 2.

(xvi) “Consolidated Net Cash” means the excess of the Company’s and the Company Subsidiaries’ cash and cash equivalents over their accrued payables and other current liabilities, as determined on a consolidated basis in accordance with IFRS.

(xvii) “Credit Facility Term Sheet” means the Credit Facility Term Sheet attached hereto as Schedule 13.

(xviii) “Data Room Information” has the meaning set forth in Section 5(z).

(xix) “Deliverable Financial Statements” means the unaudited pro forma condensed combined financial statements of the Company and its subsidiaries which have been derived from the historical audited year ended December 31, 2012, unaudited quarters ended March 31, 2012 and 2013 consolidated financial statements of the Predecessor under IFRS and the historical audited year ended December 31, 2012, unaudited quarters ended March 31, 2012 and 2013 pro forma combined financial statements of BD Real Resorts, S. de R.L. de C.V. and subsidiaries and related parties under generally accepted accounting principles in Mexico. The unaudited pro forma condensed combined balance sheet as of March 31, 2013 give effect to the Transactions (excluding transactions contemplated by the Jamaica Acquisition Agreement) as if such transactions had occurred on March 31, 2013. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2012, three month period ended March 31, 2013 and twelve month period ended March 31, 2013 give effect to the Transactions (excluding transactions contemplated by the Jamaica Acquisition Agreement) as if such transactions had occurred on January 1, 2012.

(xx) “Delivered Financial Statements” means the pro forma financial statements of the Company and the Company Subsidiaries (consisting of income statement and balance sheet information) as of and for the year ended December 31, 2012 and as of and for the three months ended March 31, 2013 giving effect to the acquisition by the Company of the Company Subsidiaries as though such transactions had occurred on January 1, 2012 for income statement purposes and as of December 31, 2012 and March 31, 2013 (as applicable) for balance sheet purposes, as set forth on Schedule 6 hereto.

(xxi) “De Minimis Owner” has the meaning set forth in the definition of “Related Party”.

(xxii) “Draft Description of Notes” means the draft description of notes attached hereto as Schedule 14.

(xxiii) DR Indemnified Matter” means (A) any lack of operating licenses (“licencias de operacion”) for the hotels Dreams La Romana, Dreams Punta Cana and Dreams Palm Beach, and (B) any of the matters described in the following, attached hereto as Schedule 24: (x) Resolucion SGA No. 102/09 dated 26/3/09 issued by the Secreteraria de Estado de Medio Ambiente y Recursos Naturales of the Dominican Republic, (y) Resolucion SGA No. 213/09 dated 2/6/09 issued by the Secreteraria de Estado de Medio Ambiente y Recursos Naturales of the Dominican Republic and (z) Resolucion SGA No. 615/09 dated 6/8/09 issued by the Secreteraria de Estado de Medio Ambiente y Recursos Naturales of the Dominican Republic.

 

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(xxiv) “Environmental Laws” means any applicable local, state or national Law or regulation concerning the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants in buildings, equipment, soil, sub-surface strata, air, surface water, or ground water.

(xxv) “Exchange Act” has the meaning set forth in Section 10(c)(ii).

(xxvi) “Fair Market Value” has the meaning set forth in Section 10(c)(v).

(xxvii) “Final Offering Memorandum” shall mean the final offering memorandum distributed to purchasers of Newco Notes between the pricing date and the closing date in the Newco Notes Offering.

(xxviii) Governmental Authority” means any supranational, national, regional or local governmental or regulatory authority having jurisdiction over the applicable Person or any of its subsidiaries, properties or assets or the consummation of the Transactions.

(xxix) “Hyatt Agreements” means the Hyatt Agreements (as defined in the Master Development Agreement) for the Initial Conversion Resorts (as defined in the Master Development Agreement) entered into by Hyatt Franchisor (or its affiliate) and the Company or a Subsidiary thereof, whether prior to, on or after the date hereof in accordance with the terms of the Master Development Agreement.

(xxx) “Hyatt Franchisor” means Hyatt Franchising Latin America, L.L.C., or a subsidiary or successor thereto.

(xxxi) “IFRS” means International Financial Reporting Standards as adopted by the European Union.

(xxxii) “Indebted Company Subsidiaries” means Playa Resorts Holding B.V., Playa Cabos Baja S. de R.L. de C.V., Playa Riviera Maya One, S. de R.L. de C.V., and Playa Romana Mar B.V.

(xxxiii) Initial Term Loans” shall have the meaning set forth in the Newco Credit Agreement.

(xxxiv) Investors Agreement” means that certain Investors Agreement by and among the Company and each of the Investors party thereto to be entered into at the Closing in the form attached hereto as Schedule 15.

(xxxv) Jamaica Acquisition Agreement” means that certain Hotel Asset Purchase Agreement dated as of May 6, 2013 by and among SFI Belmont, LLC, Rose Hall Resort, L.P. and Rose Hall Jamaica Resort B.V., as amended by that certain First Amendment to Hotel Asset Purchase Agreement dated as of June 25, 2013 attached hereto as Schedule 16.

 

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(xxxvi) Knowledge of the Company” means the actual knowledge of Bruce Wardinski (in his capacity as Chief Executive Officer), Alex Stadlin (in his capacity as Chief Operating Officer), Omar Palacios (in his capacity as Chief Financial Officer), and David Camhi (in his capacity as General Counsel and Vice President of Development of the Company), provided that with respect to the Company representations set forth in Sections 5(h) (No Litigation), 5(i) (Insurance), 5(j) (Compliance with Laws), 5(k) (Anti-Corruption Laws), 5(l) (Environmental Matters), 5(p) (No Material Adverse Change), 5(q) (Taxes), 5(r) (Assets), 5(s) (Contracts), and 5(t) (Labor Matters), “actual knowledge” of any of such individuals shall also be deemed to include any matters contained on any of the quarterly reports that have been prepared by (or requested from) the property managers to (or by) the above referenced individuals consistent with past practice and in the form set forth as Schedule 17.

(xxxvii) “Laws” means laws, statutes, ordinances, rules, code, regulations, orders, agency requirements of or undertaking to or agreements with any Governmental Authority, including common law.

(xxxviii) “Lien” means any mortgage, deed of trust, lien (statutory or other), pledge, charge, security interest, restriction, option, easement, right-of-way, encroachment or other encumbrance.

(xxxix) Losses” has the meaning set forth in Section 10(b).

(xl) “Marketing Company Structure” shall mean all the activities (including, without limitation, managerial activities and functions and support activities and functions), arrangements and transactions undertaken by IC Sales LLC (“IC Sales”), a Nevis entity, and its agents and assignees or by or on behalf of IC Sales by the Company or the Company Subsidiaries (or any other Person that is or has been affiliated with the Company) to sell, market, promote or otherwise offer hotel rooms owned by the Company or the Company Subsidiaries (or any other Person that is or has been affiliated with the Company) to unrelated parties.

(xli) “Marketing Materials” has the meaning set forth in Section 10(c)(ii).

(xlii) “Master Development Agreement” means that certain Master Development Agreement to be entered into by and between the Company and Hyatt Franchising Latin America, L.L.C. in the form attached hereto as Schedule 25.

(xliii) “Material Adverse Change” means a material adverse change in the condition (financial or otherwise), prospects, earnings, business, operations or properties of the Company and the Company Subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except for any such adverse change that (A) is generally applicable in the industry in which the Company and the Company Subsidiaries operate (other than any such change that disproportionately impacts the Company and the Company Subsidiaries), (B) is caused by acts of terrorism or war, or weather or other natural disasters, (C) is caused by facts and circumstances known to the Subscriber on the date of this Subscription Agreement, or (D) is caused by the consummation of the Transactions.

 

33


(xliv) “Material Adverse Effect” means a loss to the Company or the Company Subsidiaries (without duplication), whether or not arising from transactions in the ordinary course of business, of at least US$10,000,000.

(xlv) “Materially Burdensome Condition” has the meaning set forth in Section 7(a).

(xlvi) “Minimum FMV” has the meaning set forth in Section 10(c)(v).

(xlvii) “Net Cash Target” means US$30,000,000.

(xlviii) “Newco Credit Agreement” means the credit agreement to be entered into by the Company and/or one or more subsidiaries of the Company (as borrowers and/or guarantors) in respect of the Newco Credit Facility.

(xlix) “Newco Credit Facility” means the credit facility to be entered into by the Company and/or one or more subsidiaries of the Company (as borrowers and/or guarantors) contemplated by the Credit Facility Term Sheet.

(l) “Newco Notes” means the notes issued under the Newco Notes Indenture.

(li) “Newco Notes Indenture” means the indenture entered into by Playa Resorts Holdings B.V. on or about the Closing Date and having terms substantially consistent with the Draft Description of the Notes.

(lii) “Newco Notes Offering” means the offering, pursuant to Rule 144A and Regulation S under the Securities Act, of the Newco Notes.

(liii) “Newco Notes Offering Documents” means the Preliminary Offering Memorandum, and the Final Offering Memorandum, in each case, to be distributed in connection with the Newco Notes Offering.

(liv) “New Subsidiaries” means Hotel Gran Porto Real B.V., Hotel Gran Caribe Real B.V., Hotel Royal Cancun B.V., Hotel Royal Playa del Carmen B.V., Playa Hall Jamaican Resort Limited and Rose Hall Jamaica Resort B.V.

(lv) “Notification” has the meaning set forth in Section 6(c).

(lvi) “Organizational Liability” has the meaning set forth in Section 5(e).

(lvii) “Ordinary Shares” has the meaning of “Common Shares” set forth in the Investors Agreement.

(lviii) “Organizational Documents” means the deed of incorporation, articles of incorporation, certificate of incorporation, articles of association, charter, by-laws, articles of formation, certificate of formation, regulations, operating agreement, certificate of limited partnership, partnership agreement and all other similar documents, instruments or certificates executed, adopted or filed in connection with the creation, formation or organization of a Person, including any amendments thereto.

 

34


(lix) “Parties” means the Company and the Subscriber.

(lx) “Permitted Liens” means (A) statutory Liens for taxes not yet due or payable, (B) Liens (including mechanics’ Liens and similar Liens) arising or incurred in the ordinary course of business relating to obligations as to which there is no default on the part of the Company or a Company Subsidiary, (C) pledges, deposits or other Liens securing the performance of trade contracts, (D) encumbrances imposed by law (including applicable securities Laws and zoning, entitlement, conservation restrictions and other land use and environmental regulations), (E) easements, utility easements, covenants, and Liens set forth in any state, local or municipal franchise on title to real property, (F) minor survey exceptions which would be disclosed by an accurate survey or inspection of such real property, (G) any Liens imposed by or securing the Newco Credit Facility and/or the Newco Notes Indenture, and (H) any encumbrance affecting the fee interest of any property leased by the Company or a Company Subsidiary not created by the Company or a Company Subsidiary.

(lxi) “Person” means any individual, corporation, partnership, limited liability company, association, joint venture, association, joint stock company, trust, unincorporated organization, governmental or political subdivision or agency or any other entity of whatever nature.

(lxii) “PIK Dividends” has the meaning set forth in Section 5(a).

(lxiii) “PIK Dividend Shares” has the meaning set forth in Section 5(a).

(lxiv) “PIK Dividend Issuance Date” shall mean each date on which Preferred Shares are issued as PIK Dividends.

(lxv) “Predecessor” means Playa Hotels & Resorts, S.L., a sociedad limitada organized under the Laws of the Kingdom of Spain.

(lxvi) “Preferred Shares” has the meaning of “Preferred Shares” set forth in the Investors Agreement.

(lxvii) “Preliminary Offering Memorandum” shall mean the preliminary offering memorandum generally distributed to potential purchasers of the Newco Notes at the commencement of the roadshow for the Newco Notes Offering.

(lxviii) “Pricing Disclosure Package” shall have the meaning set forth in the purchase agreement to be entered into between the Company and the Initial Purchasers (as defined therein) in connection with the Newco Notes Offering.

(lxix) “Real Acquisition Agreement” means that certain Master Investment Agreement, dated as of May 24, 2013, by and among Compañia Hotelera Gran Playa Real S. de R.L. de C.V. and Inmobiliaria Turistica Real S. de R.L. de C.V. (the “Real Sellers”), the Company and the other parties named therein, including all schedules, exhibits and attachments thereto.

 

35


(lxx) “Real Due Diligence Materials” means all written materials provided to the Subscriber by or on behalf of the Company in connection with the Subscriber’s evaluation of the Real Target Companies and the transactions contemplated by the Real Acquisition Agreement.

(lxxi) “Real Flash Drive” has the meaning set forth in Section 5(z).

(lxxii) “Real Sellers” has the meaning set forth in the definition of Real Acquisition Agreement.

(lxxiii) “Real Target Companies” means the Target Companies as defined in the Real Acquisition Agreement.

(lxxiv) “Regulatory Approvals” means the approval of the Transactions by the Mexican Federal Competition Commission (Comisión Federal de Competencia/Concentración) under the Mexican Federal Competition Law (Ley Federal de Competencia Económica).

(lxxv) “Related Party” means, with respect to a Person, (i) a current affiliate, shareholder or other equity owner or holder (other than a shareholder or other equity owner or holder holding less than five percent (5%) of such person (a “De Minimis Owner”), officer or director of such Person, (ii) any Person with whom such Person or any such affiliate, shareholder or other equity owner or holder (other than a De Minimis Owner), officer or director is a “related person” as defined under the Securities Act, including any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of such Person, director or executive officer or nominee for director of such Person, and any Person (other than a tenant or employee) sharing the household of such Person, and (iii) any entity in which any such Person or any such affiliate, shareholder or other equity owner or holder (other than a De Minimis Owner), officer or director of such Person owns any beneficial interest, other than a publicly held corporation the stock of which is traded on a national securities exchange or in the over-the counter market (provided that such Person or such affiliate, shareholder, officer or director holds less than five percent (5%) of the stock of such publicly held corporation).

(lxxvi) “Related Party Transaction” has the meaning set forth in Section 5(u).

(lxxvii) “Sale and Purchase Agreement” means that certain Sale and Purchase Agreement to be entered into at the closing between Playa Hotels & Resorts, S.L. and the Company in the form attached hereto as Schedule 18.

(lxxviii) “Securities Act” has the meaning set forth in Section 4(b).

(lxxix) “Shares” has the meaning set forth in Section 1(a).

 

36


(lxxx) “Subscriber” has the meaning set forth in the Preamble.

(lxxxi) “Subscriber’s Advisors” has the meaning set forth in Section 6(b).

(lxxxii) “Subscription Agreement” has the meaning set forth in the Preamble.

(lxxxiii) “Subsidiary” means, with respect to a Person, any entity in which such Person directly or indirectly owns 50% or more of the voting securities or rights or otherwise controls the entity by acting as the managing member, general partner, director, or in a similar role.

(lxxxiv) “Termination Agreements” means (i) with respect to those Company Subsidiaries that own the Dreams Cancun Hotel, the Dreams Puerto Vallarta Hotel, the Dreams La Romana Hotel, the Dreams Puerto Aventuras Hotel, the Dreams Palm Beach Hotel, the Dreams Punta Cana Hotel and the Secrets Capri Hotel, amendments to the Management Agreements between each such Company Subsidiary and AMResorts Holdings, L.P., in the form attached to the Transaction Agreement dated on or about the date hereof by and among the Company, Playa Hotels & Resorts, S.L., AMResorts Holdings, L.P. and the other parties named therein; and (ii) with respect to the Company Subsidiary that owns Hotel Barceló Los Cabos Resort, a termination notice including a general release of claims substantially in the form set forth on Schedule 19, delivered pursuant to the Amendment of Management, Services and License Agreements for Hotel Barcelo Premium Los Cabos, in each case acknowledged by (a) the Grubarges Gestión Hotelera Mexicana, S.A. de C.V., (b) Caribbean Hotel Agency, S.A. and (c) Quiroocan, S. A. de C.V. and in each case in a form and substance reasonably satisfactory to the Subscriber.

(lxxxv) “Termination Date” has the meaning set forth in Section 9(a).

(lxxxvi) “Third Party” means with respect to any Person, any other Person that has no control directly or indirectly, through one or more intermediaries, nor controls, is controlled by or is under common control with such Person. For purposes of this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise, and the terms “controlled” or “controlling” have meanings correlative thereto.

(lxxxvii) “Third Party Approvals” means those authorizations, approvals, consents and filings identified on Part 5(c) of Schedule 7 hereto to be obtained by the Company or the Company Subsidiaries from any Third Party as a condition to the Company’s obligations to consummate the Closing.

(lxxxviii) “Transactions” means the transactions contemplated by the Transaction Documents.

 

37


(lxxxix) “Transaction Documents” means this Subscription Agreement, the Sale and Purchase Agreement, the Real Acquisition Agreement, the Jamaica Acquisition Agreement, the Termination Agreements, the Newco Credit Agreement, and the Newco Notes Indenture.

(xc) “Valuation Expert” means an internationally recognized accounting or investment banking firm with at least ten years of experience valuing equity ownership interests in both public and private hospitality companies in Latin America, and which has not provided services to either the Subscriber or the Predecessor within the five years preceding the year in which such firm is proposed to be engaged as a Valuation Expert.

[remainder of this page intentionally left blank; signature page follows]

 

38


IN WITNESS WHEREOF, and intended to be bound, the undersigned Subscriber has executed and delivered this Subscription Agreement as of the date first above written.

 

HI HOLDINGS PLAYA B.V.

By:

 

/s/ Stephen G. Haggerty

Name:

 

Stephen G. Haggerty

Title:

 

Authorized Signatory

 

ACCEPTED AND AGREED:

PLAYA HOTELS & RESORTS B.V.

By:

 

/s/ Bruce D. Wardinski

Name:

 

Bruce D. Wardinski

Title:

 

Managing Director

By:

 

/s/ J.E. Hardeveld

Name:

 

J.E. Hardeveld

Title:

 

Managing Director B

[Signature Page to Subscription Agreement]


Schedule 1 – Shares

26,785,714 Preferred Shares, issue price US$8.40 per share, for an aggregate issue price of US$225,000,000

14,285,714 Ordinary Shares, issue price US$7.00 per share, for an aggregate issue price of US$100,000,000

Schedule 1 to the Subscription Agreement


Schedule 2 – Deed of Issuance

Schedule 2 to the Subscription Agreement

 

1


 

LOGO

Step 4A.2.1

DEED OF ISSUE OF SHARES

between

HI HOLDINGS PLAYA B.V.

as the Subscriber

and

PLAYA HOTELS & RESORTS B.V.

as the Company

 

 

 

LOGO

 

 

 

Schedule 2 to the Subscription Agreement

 

1


LOGO

DEED OF ISSUE OF SHARES

PLAYA HOTELS & RESORTS B.V.

On this, the [day] day of [month] two thousand and thirteen, appeared before me, Cornelis Hein Theodoor Koetsier, civil law notary in Amsterdam:

 

1. [DLA Piper Nederland employee, under proxy], acting for the purposes of this Deed as the holder of written powers of attorney from HI Holdings Playa B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), having its corporate seat at Amsterdam, the Netherlands (address: 1101 CM Amsterdam Zuidoost, Herikerbergweg 238, trade register number: 58075550) (the “Subscriber”); and

 

2. [NautaDutilh employee, under proxy], acting for the purposes of this Deed as the holder of written powers of attorney from Playa Hotels & Resorts B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), having its corporate seat at Amsterdam, the Netherlands (address: 1097 JB Amsterdam, the Netherlands, Prins Bernardplein 200, trade register number 57593590) (the “Company”).

The person appearing, acting in the above capacities, declared the following:

DEFINITIONS

ARTICLE 1

In this Deed the following definitions shall apply:

 

Articles of Association

   the Company’s articles of association.

DCC

   the Dutch Civil Code (Burgerlijk Wetboek).

Deed

   this deed of issue of shares.

General Meeting

   the general meeting of the Company.

Issue Price

   the Issue Price I and the Issue Price II together.

Issue Price I

   one hundred million United States Dollar (USD 100,000,000).

Issue Price II

   two hundred twenty-five million United States Dollar (USD 225,000,000).

Parties

   the parties to this Deed.

Resolution

   the resolution of the General Meeting dated the [day] day of [month] two thousand and thirteen, as is evidenced by a copy of the written resolution that will be attached to this Deed as an annex.

Shares

   the Shares I and the Shares II together.

Shares I

   fourteen million two hundred eighty-five thousand seven hundred and fourteen (14,285,714) ordinary shares in the capital of the Company, having a nominal value of one United States Dollar cent (USD 0.01) each and numbered 2,000,001 up to and including 16,285,714.

Shares II

   twenty-six million seven hundred eighty-five thousand seven hundred and fourteen (26,785,714) cumulative preferred shares in the capital of the Company, having a nominal value of one United States Dollar cent (USD 0.01) each and numbered P1 up to and including P26,785,714.

 

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Subscription Agreement

   An agreement between the Company, the Subscriber with regard to terms and conditions for the issuance of the Shares by the Company to the Subscriber dated the [day] day of [month] two thousand and thirteen.

RESOLUTION TO ISSUE SHARES

ARTICLE 2

As is evidenced by the Resolution, the General Meeting has decided to issue the Shares to the Subscriber at the Issue Price. The Shares will be issued on the conditions laid down in the Resolution.

PRE-EMPTION RIGHTS

ARTICLE 3

As is evidenced by the Resolution, the General Meeting has excluded the pre-emption rights (voorkeursrechten) in respect of the issue of the Shares.

ISSUE OF SHARES

ARTICLE 4

The Company hereby issues the Shares to the Subscriber and the Subscriber hereby accepts the Shares from the Company.

PAYMENT AND DISCHARGE

ARTICLE 5

 

5.1 The Company has received and accepted the Issue Price, which has been paid in accordance with the Subscription Agreement, for the Shares from the Subscriber. The Shares have been paid up in full.

 

5.2 To the extent the Issue Price for the Shares exceeds their total nominal value, the difference will be recognised as share premium (agio) and will be taken to the Company’s share premium reserve (agioreserve) for the relevant class of shares.

 

5.3 The Company hereby grants the Subscriber a discharge in respect of payment of the Issue Price for the Shares.

REGISTER

ARTICLE 6

The Company will immediately enter the issue of the Shares in its register.

CHOICE OF LAW AND JURISDICTION

ARTICLE 7

This Deed shall be governed by and construed in accordance with the laws of the Netherlands. Any dispute arising in connection with this Deed shall be submitted to the exclusive jurisdiction of the competent court in Amsterdam.

CIVIL LAW NOTARY

ARTICLE 8

 

8.1 The Parties are aware that the undersigned civil law notary works with NautaDutilh N.V., the firm that has advised the Company in this transaction.

 

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8.2 With reference to the Code of Conduct (Verordening beroeps- en gedragsregels) laid down by the Royal Notarial Professional Organisation (Koninklijke Notariële Beroepsor-ganisatie), the Parties hereby explicitly consent to:

 

  a. the undersigned civil law notary executing this Deed; and

 

  b. the Company being assisted and represented by NautaDutilh N.V. in relation to this Deed and any agreements that may be concluded, or disputes that may arise, in connection therewith.

FINAL PROVISION

ARTICLE 9

The sole purpose of the headings appearing in capital letters in this Deed is to increase its readability. None of the parties is entitled to derive any rights therefrom.

POWER OF ATTORNEY

ARTICLE 10

The persons appearing have been authorised to act under two (2) powers of attorney in the form of private instruments, which will be attached to this Deed.

FINAL STATEMENTS

The persons appearing are known to me, civil law notary.

This Deed was executed in Amsterdam, on the date mentioned in its heading.

After I, civil law notary, had conveyed and explained the contents of the Deed in substance to the persons appearing, they declared that they had taken note of the contents of the Deed, were in agreement with the contents and did not wish them to be read out in full. Following a partial reading, the Deed was signed by the persons appearing and by me, civil law notary.

 

4


Schedule 3 – Deed of Incorporation

See Attached.

Schedule 3 to the Subscription Agreement


LOGO    LOGO   

Voorheen: 63003356 M 9063889

AKTE VAN OPRICHTING

PLAYA HOTELS & RESORTS B.V.

Heden, achtentwintig maart tweeduizend dertien, verscheen voor mij, mr. Cornelis Hein Theodoor Koetsier, notaris te Amsterdam:

de heer mr. Laurens Yske Braaksma, werkzaam ten kantore van mij, notaris, te 1077 XV Amsterdam, Strawinskylaan 1999, geboren te Wageningen op vier oktober negentienhonderd vierentachtig,

te dezen handelend als schriftelijk gevolmachtigde van:

Playa Hotels & Resorts, S.L., een vennootschap beheerst door Spaans recht (sociedad limitada), kantoorhoudende te Calle Julian Camarillo 19-21, Madrid, Spanje, ingeschreven in het Registro Mercantil in Madrid, Spanje, onder nummer M-401672 (de “Oprichter”).

De comparant, handelend als vermeld, verklaarde bij deze een besloten vennootschap met beperkte aansprakelijkheid (de “Vennootschap”) op te richten, welke wordt geregeerd door de volgende

STATUTEN

BEGRIPSBEPALING EN INTERPRETATIE

Artikel 1

 

1.1 In deze statuten worden de volgende definities gehanteerd:

 

Aandeelhouder

   een houder van aandelen in het kapitaal van de Vennootschap.

Algemene Vergadering

   het orgaan dat gevormd wordt door de Vergadergerechtigden, dan wel de bijeenkomst van Vergadergerechtigden.

Bestuur

   het bestuur van de Vennootschap.

BW

   het Burgerlijk Wetboek.

Certificaathouder

   een houder van certificaten van aandelen in het kapitaal van de Vennootschap.

Dochtermaatschappij

   een rechtspersoon waarin de Vennootschap of een of meer van haar dochtermaatschappijen, al dan niet krachtens overeenkomst met andere stemgerechtigden, alleen of samen meer dan de helft van de stemrechten in de algemene vergadering kunnen uitoefenen, alsmede andere rechtspersonen en vennootschappen welke als zodanig door het BW worden aangemerkt.

Groepsmaatschappij

   een rechtspersoon of vennootschap die organisatorisch met de Vennootschap is verbonden in een economische eenheid.

Vennootschap

   de rechtspersoon waarop deze statuten betrekking hebben.

 

1


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Vergadergerechtigde

   een Aandeelhouder, een Certificaathouder alsmede een vruchtgebruiker of pandhouder met stemrecht en/of Vergaderrecht.

Vergaderrecht

   het recht om, in persoon of bij schriftelijk gevolmachtigde, de Algemene Vergadering bij te wonen en daar het woord te voeren.

Volstrekte Meerderheid

   meer dan de helft van het aantal uitgebrachte stemmen.

 

1.2 Begrippen die in het enkelvoud zijn gedefinieerd, hebben een gelijke betekenis in het meervoud.

 

1.3 Onder de term schriftelijk wordt tevens begrepen langs elektronische weg.

NAAM EN ZETEL

Artikel 2

 

2.1 De Vennootschap is genaamd Playa Hotels & Resorts B.V.

 

2.2 Zij is gevestigd te Amsterdam.

DOEL

Artikel 3

De Vennootschap heeft ten doel:

 

  a. het oprichten van, het op enigerlei wijze deelnemen in, het financieren van, het zich op andere wijze interesseren bij en het voeren van beheer over andere vennootschappen en ondernemingen;

 

  b. het lenen, uitlenen en bijeenbrengen van gelden, waaronder begrepen het uitgeven van obligaties, schuldbrieven of andere waardepapieren, alsmede het aangaan van daarmee samenhangende overeenkomsten;

 

  c. het verstrekken van garanties, het verbinden van de Vennootschap en het bezwaren van activa van de Vennootschap ten behoeve van (verplichtingen van) de Vennootschap en vennootschappen en ondernemingen waarmee de Vennootschap in een groep is verbonden en ten behoeve van derden;

 

  d. het verkrijgen, beheren, exploiteren en vervreemden van registergoederen en van vermogenswaarden in het algemeen;

 

  e. het exploiteren en verhandelen van octrooien, merkrechten, vergunningen, knowhow, auteursrechten, databanken en andere intellectuele eigendomsrechten;

 

  f. het verrichten van alle soorten industriële, financiële en commerciële activiteiten; en

 

  g. het verrichten van al hetgeen met het vorenstaande in de ruimste zin verband houdt of daartoe bevorderlijk kan zijn.

AANDELEN - KAPITAAL

Artikel 4

 

4.1 Het nominale bedrag van ieder aandeel is één United States Dollar (USD 1.00).

 

4.2 De aandelen zijn op naam gesteld en zijn doorlopend genummerd van 1 af.

 

2


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4.3 Ten minste één aandeel wordt gehouden door een ander dan en anders dan voor rekening van de Vennootschap of één van haar Dochtermaatschappijen.

AANDELEN - REGISTER

Artikel 5

 

5.1 Het Bestuur houdt een register waarin de namen en adressen van alle Aandeelhouders, vruchtgebruikers, pandhouders en Certificaathouders zijn opgenomen.

 

5.2 Aandeelhouders en anderen van wie gegevens in het register moeten worden opgenomen, verschaffen aan het Bestuur tijdig de nodige gegevens. Alle gevolgen van het niet, niet tijdig of onjuist mededelen van die gegevens zijn voor rekening en risico van de betrokkene.

 

5.3 Alle kennisgevingen aan en oproepingen van Vergadergerechtigden kunnen aan de in het register vermelde adressen worden gedaan.

 

5.4 Op het register is voorts het bepaalde in artikel 2:194 BW van toepassing.

AANDELEN - UITGIFTE

Artikel 6

 

6.1 De Vennootschap kan slechts ingevolge een besluit van de Algemene Vergadering aandelen uitgeven. De Algemene Vergadering kan haar bevoegdheid hiertoe overdragen aan een ander orgaan en kan deze overdracht herroepen.

 

6.2 Artikel 6.1 is van overeenkomstige toepassing op het verlenen van rechten tot het nemen van aandelen, maar is niet van toepassing op het uitgeven van aandelen aan iemand die een voordien reeds verkregen recht tot het nemen van aandelen uitoefent.

 

6.3 De Vennootschap kan geen eigen aandelen nemen.

AANDELEN - VOORKEURSRECHT

Artikel 7

 

7.1 Bij uitgifte van aandelen heeft iedere Aandeelhouder een voorkeursrecht naar evenredigheid van het gezamenlijke bedrag van zijn aandelen. Er is geen voorkeursrecht op aandelen die worden uitgegeven aan werknemers van de Vennootschap of van een Groepsmaatschappij.

 

7.2 Het voorkeursrecht kan, telkens voor een enkele uitgifte, worden beperkt of uitgesloten bij besluit van het orgaan dat tot het nemen van het besluit tot uitgifte bevoegd is.

 

7.3 De Vennootschap kondigt de uitgifte met voorkeursrecht en het tijdvak waarin dat kan worden uitgeoefend, aan in een schriftelijke mededeling aan alle Aandeelhouders aan het door hen opgegeven adres.

 

7.4 Het voorkeursrecht kan worden uitgeoefend gedurende ten minste vier weken na de dag van verzending van de aankondiging.

 

7.5 Dit artikel is van overeenkomstige toepassing op het verlenen van rechten tot het nemen van aandelen, maar is niet van toepassing op het uitgeven van aandelen aan iemand die een voordien reeds verkregen recht tot het nemen van aandelen uitoefent.

AANDELEN - STORTING

Artikel 8

 

8.1 Bij het nemen van een aandeel moet daarop het nominale bedrag worden gestort. Bedongen kan worden dat het nominale bedrag of een deel daarvan eerst behoeft te worden gestort na verloop van een bepaalde tijd of nadat de Vennootschap het zal hebben opgevraagd.

 

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8.2 Storting op een aandeel moet in geld geschieden voor zover niet een andere inbreng is overeengekomen.

 

8.3 Storting in een andere geldeenheid dan die waarin het nominale bedrag van de aandelen luidt, is slechts toegestaan met toestemming van de Vennootschap. Met storting in een andere geldeenheid dan die waarin het nominale bedrag van de aandelen luidt, wordt aan de stortingsplicht voldaan voor het bedrag waartegen het gestorte bedrag vrijelijk kan worden gewisseld in de geldeenheid waarin het nominale bedrag van de aandelen luidt. Bepalend is de wisselkoers op de dag van de storting.

 

8.4 Het Bestuur is zonder voorafgaande goedkeuring van de Algemene Vergadering bevoegd tot het aangaan van rechtshandelingen betreffende inbreng op aandelen anders dan in geld.

AANDELEN - EIGEN AANDELEN

Artikel 9

 

9.1 Het Bestuur beslist over de verkrijging van aandelen in het kapitaal van de Vennootschap. Verkrijging door de Vennootschap van niet volgestorte aandelen in haar kapitaal is nietig.

 

9.2 De Vennootschap mag, behalve om niet, geen volgestorte eigen aandelen verkrijgen indien het eigen vermogen, verminderd met de verkrijgingsprijs, kleiner is dan de reserves die krachtens de wet moeten worden aangehouden, of indien het Bestuur weet of redelijkerwijs behoort te voorzien dat de Vennootschap na de verkrijging niet zal kunnen blijven voortgaan met het betalen van haar opeisbare schulden.

 

9.3 De vorige leden van dit artikel gelden niet voor aandelen die de Vennootschap onder algemene titel verkrijgt.

 

9.4 Onder het begrip aandelen in de vorige leden van dit artikel zijn certificaten daarvan begrepen.

 

9.5 Artikel 12 is op vervreemding van eigen aandelen door de Vennootschap van toepassing.

AANDELEN - VERMINDERING VAN HET GEPLAATSTE KAPITAAL

Artikel 10

 

10.1 De Algemene Vergadering kan besluiten tot vermindering van het geplaatste kapitaal door intrekking van aandelen of door het bedrag van aandelen bij statutenwijziging te verminderen. In dit besluit moeten de aandelen waarop het besluit betrekking heeft, worden aangewezen en moet de uitvoering van het besluit zijn geregeld.

 

10.2 Een besluit tot intrekking kan slechts betreffen aandelen die de Vennootschap zelf houdt of waarvan zij de certificaten houdt. In andere gevallen kan slechts tot intrekking worden besloten met instemming van de betrokken Aandeelhouders.

 

10.3 Vermindering van het nominale bedrag van aandelen zonder terugbetaling en zonder ontheffing van de verplichting tot storting moet naar evenredigheid op alle aandelen geschieden. Van het vereiste van evenredigheid mag worden afgeweken met instemming van alle betrokken Aandeelhouders.

 

10.4 Terugbetaling of ontheffing van de stortingsplicht in de zin van dit artikel is slechts toegestaan, voor zover het eigen vermogen groter is dan de reserves die krachtens de wet moeten worden aangehouden.

 

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10.5 Een besluit dat strekt tot vermindering van het geplaatste kapitaal met terugbetaling op aandelen heeft geen gevolgen zolang het Bestuur geen goedkeuring heeft verleend. Het Bestuur weigert slechts de goedkeuring indien het weet of redelijkerwijs behoort te voorzien dat de Vennootschap na de uitkering niet zal kunnen blijven voortgaan met het betalen van haar opeisbare schulden.

 

10.6 De oproeping tot een vergadering waarin een in dit artikel genoemd besluit wordt genomen, vermeldt het doel van de kapitaalvermindering en de wijze van uitvoering.

AANDELEN - LEVERING

Artikel 11

 

11.1 Voor de uitgifte en levering van een aandeel of de levering van een beperkt recht daarop is vereist een daartoe bestemde ten overstaan van een in Nederland standplaats hebbende notaris verleden akte waarbij de betrokkenen partij zijn.

 

11.2 De levering van een aandeel of de levering van een beperkt recht daarop overeenkomstig artikel 11.1 werkt mede van rechtswege tegenover de Vennootschap. Behoudens in het geval dat de Vennootschap zelf bij de rechtshandeling partij is, kunnen de aan het aandeel verbonden rechten eerst worden uitgeoefend nadat zij de rechtshandeling heeft erkend, danwel de akte aan haar is betekend.

 

11.3 Artikel 11.2 is van overeenkomstige toepassing met betrekking tot de levering van een certificaat van een aandeel.

AANDELEN - BLOKKERINGSREGELING

Artikel 12

 

12.1 Een Aandeelhouder, die één of meer aandelen wenst over te dragen, is in alle gevallen verplicht die aandelen eerst te koop aan te bieden aan de overige Aandeelhouders. De aanbieder is verplicht schriftelijk van zijn voornemen daartoe mededeling te doen aan het Bestuur onder opgave van de naam van de voorgestelde verkrijger(s) en van het aantal over te dragen aandelen; deze kennisgeving geldt als aanbieding van het aandeel of de aandelen aan de overige Aandeelhouders op de wijze als hierna is omschreven.

 

12.2 Het Bestuur brengt het aanbod binnen acht dagen na ontvangst schriftelijk ter kennis van de overige Aandeelhouders.

 

12.3 Gedurende veertien dagen na verzending van de in artikel 12.2 voorgeschreven kennisgeving, kan ieder van de overige Aandeelhouders op het aanbod in gaan door schriftelijke kennisgeving daarvan aan het Bestuur onder vermelding van het aantal aandelen waarop hij reflecteert.

 

12.4 Indien de overige Aandeelhouders op meer aandelen reflecteren dan het aantal dat wordt aangeboden, dan wordt het aantal aandelen dat is aangeboden zoveel mogelijk toegewezen in verhouding tot het gezamenlijke nominale bedrag van hun aandelen. Heeft een Aandeelhouder op minder aandelen gereflecteerd dan hem naar bedoelde verhouding zouden toekomen, dan worden de daardoor vrijkomende aandelen aan de overige gegadigden in genoemde verhouding toegewezen. Een voor verdeling met toepassing van het vorenstaande niet vatbaar aantal aandelen of restant wordt toegewezen bij loting door het Bestuur in aanwezigheid van een notaris, ter keuze van het Bestuur, te houden binnen acht dagen na sluiting van de termijn waarbinnen Aandeelhouders mogen reflecteren. De

 

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   gegadigden worden opgeroepen bij die loting aanwezig te zijn. Een gegadigde die bij de loting een aandeel toegewezen krijgt, neemt aan de loting niet verder deel totdat ieder van de gegadigden bij de loting ten minste één aandeel toegewezen gekregen heeft. Het Bestuur deelt het aantal aandelen dat aan iedere gegadigde is toegewezen, onverwijld schriftelijk mede aan de aanbieder en de gegadigden.

 

12.5 De aanbieder en de gegadigden aan wie één of meer aandelen zijn toegewezen treden in overleg omtrent de voor het aandeel of de aandelen te betalen prijs. Indien dit overleg niet tot overeenstemming heeft geleid binnen drie weken na de schriftelijke mededeling als be-doeld in de laatste zin van artikel 12.4, wordt de prijs welke gelijk dient te zijn aan de waarde van het aandeel of de aandelen bepaald door één of meer door de aanbieder en de gegadigden in onderling overleg te benoemen onafhankelijke deskundigen. Komen partijen binnen twee maanden na het tijdstip genoemd in de vorige zin niet tot overeenstemming omtrent de benoeming, dan heeft de meest gerede partij de bevoegdheid de benoeming van drie onafhankelijke deskundigen te verzoeken aan de president van de rechtbank, binnen welker rechtsgebied de Vennootschap haar woonplaats heeft.

 

12.6 De deskundige(n) breng(t)(en) hun rapport uit aan het Bestuur. Het Bestuur deelt de vastgestelde prijs onverwijld schriftelijk mede aan de aanbieder en de gegadigden.

 

12.7 Iedere gegadigde heeft gedurende een maand na verzending van de in artikel 12.6 bedoelde schriftelijke mededeling het recht te verklaren dat hij niet langer of slechts voor een minder aantal aandelen dan waarop hij aanvankelijk had gereflecteerd, gegadigd is. Deze verklaring geschiedt door schriftelijke mededeling aan het Bestuur. De aldus vrijvallende aandelen worden alsdan door het Bestuur bij schriftelijke mededeling binnen acht dagen tegen de door de deskundige(n) vastgestelde prijs aangeboden aan de resterende gegadigden met overeenkomstige toepassing van het in artikel 12.3 en artikel 12.4 bepaalde.

 

12.8 De aanbieder heeft steeds het recht zijn aanbod in te trekken doch uiterlijk tot een maand nadat hem definitief ter kennis is gekomen aan welke gegadigden hij al de aangeboden aandelen kan verkopen en tegen welke prijs. Deze intrekking geschiedt door schriftelijke mededeling aan het Bestuur.

 

12.9 Nadat de hiervoor bepaalde termijn voor intrekking van het aanbod is verstreken deelt het Bestuur aan de aanbieder en de uiteindelijke gegadigden mede of de aanbieder zijn aanbod al dan niet heeft ingetrokken. Ingeval van gestanddoening van het aanbod moeten de toegewezen aandelen tegen gelijktijdige betaling van de verschuldigde prijs worden geleverd binnen een maand na ontvangst van de mededeling van het Bestuur omtrent de gestanddoening van het aanbod.

 

12.10 De overdracht van alle aangeboden aandelen aan de voorgestelde verkrijger(s) genoemd in de schriftelijke mededeling voorgeschreven in artikel 12.1 is vrij, indien niet op alle aandelen tegen contante betaling wordt gereflecteerd, mits de aanbieder zijn aanbod niet heeft ingetrokken en mits de overdracht plaats vindt binnen drie maanden nadat is komen vast te staan dat niet op alle aandelen is gereflecteerd en zulks door het Bestuur aan de aanbieder is medegedeeld.

 

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   Indien evenwel de aanbieder alsdan de aangeboden aandelen aan de voorgestelde verkrijger(s) tegen een lagere prijs dan de vastgestelde of overeengekomen prijs wenst over te dragen, zal hij verplicht zijn de aangeboden aandelen tegen deze lagere prijs aan de overige Aandeelhouders aan te bieden met overeenkomstige toepassing van het in dit artikel bepaalde, echter met uitzondering van artikelen 12.5, 12.6 en 12.7.

 

12.11 Indien de Aandeelhouder krachtens de wet tot overdracht van zijn aandeel aan een eerdere houder verplicht is, vinden de bepalingen in dit artikel omtrent overdraagbaarheid geen toepassing.

 

12.12 De bepalingen in dit artikel vinden evenmin toepassing indien de overige Aandeelhouders schriftelijk hebben verklaard af te zien van hun recht op overneming van het aandeel en mits de overdracht van het aandeel geschiedt binnen drie maanden nadat alle overige Aandeelhouders bedoelde verklaring hebben afgelegd.

AANDELEN - VRUCHTGEBRUIK, PANDRECHT EN CERTIFICATEN

Artikel 13

 

13.1 De Aandeelhouder heeft het stemrecht op de aandelen waarop een vruchtgebruik of pandrecht is gevestigd.

 

13.2 In afwijking van artikel 13.1 komt het stemrecht toe aan de vruchtgebruiker of de pandhouder indien zulks bij de vestiging van het beperkt recht is bepaald of dit nadien is overeengekomen, een en ander met inachtneming van het bepaalde in artikel 2:197 BW respectievelijk artikel 2:198 BW.

 

13.3 Vruchtgebruikers en pandhouders die geen stemrecht hebben, hebben geen Vergaderrecht tenzij bij de vestiging of overdracht van het vruchtgebruik respectievelijk vestiging of overgang van het pandrecht anders is bepaald en dit is goedgekeurd door de Algemene Vergadering.

 

13.4 Aan certificaten van aandelen is Vergaderrecht verbonden.

BESTUUR - BENOEMING, SCHORSING EN ONTSLAG

Artikel 14

 

14.1 De Vennootschap heeft een Bestuur bestaande uit ten minste twee bestuurders. Zowel een natuurlijke persoon als een rechtspersoon kan bestuurder zijn.

 

14.2 De Algemene Vergadering stelt het aantal bestuurders vast, met inachtneming van het bepaalde in het vorige lid.

 

14.3 De Algemene Vergadering benoemt de bestuurders en is te allen tijde bevoegd iedere bestuurder te schorsen of te ontslaan.

 

14.4 Het Bestuur kan uit zijn midden een voorzitter aanwijzen.

 

14.5 De Algemene Vergadering stelt de bezoldiging en de verdere arbeidsvoorwaarden van ieder van de bestuurders vast.

 

14.6 Ingeval van ontstentenis of belet van één of meer bestuurders, is (zijn) de overblijvende bestuurder(s) voorlopig met het gehele bestuur belast. Ingeval van ontstentenis of belet van alle bestuurders of van de enige bestuurder, berust het bestuur voorlopig bij een persoon die daartoe door de Algemene Vergadering wordt aangewezen.

BESTUUR - TAAK, ORGANISATIE EN BESLUITVORMING

Artikel 15

 

15.1 Behoudens de beperkingen volgens deze statuten is het Bestuur belast met het besturen van de Vennootschap. Bij de vervulling van hun taak richten de bestuurders zich naar het belang van de Vennootschap en de met haar verbonden onderneming.

 

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15.2 In een vergadering van het Bestuur is elke bestuurder gerechtigd één stem uit te brengen.

 

15.3 Een bestuurder kan ter zake van besluitvorming van het Bestuur uitsluitend door een medebestuurder worden vertegenwoordigd.

 

15.4 Het Bestuur besluit zowel in als buiten vergadering met Volstrekte Meerderheid. Ongeldige en blanco stemmen worden niet als uitgebrachte stemmen geteld.

 

15.5 Bij staken van stemmen beslist de Algemene Vergadering.

 

15.6 Een bestuurder neemt niet deel aan de beraadslaging en besluitvorming indien hij daarbij een direct of indirect persoonlijk belang heeft dat tegenstrijdig is met het belang van de Vennootschap en de met haar verbonden onderneming. Wanneer hierdoor geen bestuursbesluit kan worden genomen, wordt desalniettemin het besluit genomen door het Bestuur.

 

15.7 Een gelijktijdige verbinding met geluid tot stand gebracht tussen bestuurders, waar ter wereld zij ook zijn, vormt gedurende het bestaan van deze verbinding een bestuursvergadering, tenzij een bestuurder zich daartegen verzet.

 

15.8 Besluiten van het Bestuur kunnen in plaats van in een vergadering ook schriftelijk worden genomen, mits alle bestuurders in het te nemen besluit gekend zijn en geen van hen zich tegen deze wijze van besluiten verzet.

 

15.9 Het Bestuur kan een reglement opstellen waarin aangelegenheden hem intern betreffende worden geregeld. Voorts kunnen de bestuurders al dan niet bij reglement hun werkzaamheden onderling verdelen.

BESTUUR - BEPERKINGEN

Artikel 16

 

16.1 Het Bestuur behoeft de goedkeuring van de Algemene Vergadering voor zodanige bestuursbesluiten als de Algemene Vergadering bij haar specifiek omschreven besluit heeft vastgesteld en aan het Bestuur heeft medegedeeld.

 

16.2 Het ontbreken van de ingevolge artikel 16.1 vereiste goedkeuring tast de vertegenwoordigingsbevoegdheid van het Bestuur of de bestuurders niet aan.

 

16.3 Het Bestuur dient de aanwijzingen van de Algemene Vergadering op te volgen, tenzij deze aanwijzingen in strijd zijn met het belang van de Vennootschap en de met haar verbonden onderneming.

BESTUUR - VERTEGENWOORDIGING

Artikel 17

 

17.1 Het Bestuur vertegenwoordigt de Vennootschap. De Vennootschap kan voorts worden vertegenwoordigd door twee bestuurders, gezamenlijk handelend.

 

17.2 Het Bestuur is bevoegd één of meer personen aan te stellen als procuratiehouder en hun bevoegdheid vast te stellen. Het Bestuur kan een zodanige titulatuur toekennen aan een procuratiehouder als het Bestuur gewenst acht.

ALGEMENE VERGADERING - BIJEENROEPING EN AGENDERING

Artikel 18

 

18.1 Tijdens ieder boekjaar wordt ten minste één Algemene Vergadering gehouden of ten minste eenmaal overeenkomstig artikel 22.1 of artikel 24.5 besloten.

 

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18.2 Voorts worden Algemene Vergaderingen gehouden zo dikwijls het Bestuur of één of meer bestuurders overgaan tot bijeenroeping.

 

18.3 Eén of meer Aandeelhouders die alleen of gezamenlijk ten minste één honderdste gedeelte van het geplaatste kapitaal vertegenwoordigen kunnen aan het Bestuur schriftelijk en onder nauwkeurige opgave van de te behandelen onderwerpen het verzoek richten een Algemene Vergadering bijeen te roepen. Het Bestuur treft de nodige maatregelen, opdat de Algemene Vergadering binnen vier weken na het verzoek kan worden gehouden, tenzij een zwaarwichtig belang van de Vennootschap zich daartegen verzet. Indien alsdan het Bestuur in gebreke blijft een vergadering bijeen te roepen, zodanig dat deze binnen de voorgeschreven termijn wordt gehouden, is ieder van de verzoekers zelf tot bijeenroeping bevoegd met inachtneming van het daaromtrent in deze statuten bepaalde. Voor de toepassing van dit lid worden met de Aandeelhouders gelijkgesteld anderen aan wie het Vergaderrecht toekomt.

 

18.4 Algemene Vergaderingen worden gehouden in de statutaire plaats van vestiging van de Vennootschap. In een Algemene Vergadering, gehouden in een andere plaats kunnen geldige besluiten eveneens worden genomen, mits alle Vergadergerechtigden hebben ingestemd met de plaats van vergadering en de bestuurders voorafgaand aan de besluitvorming in de gelegenheid zijn gesteld om advies uit te brengen.

 

18.5 De oproeping van Vergadergerechtigden geschiedt door middel van oproepingsbrieven niet later dan op de achtste dag vóór die van de vergadering.

 

18.6 Indien de Vergadergerechtigde hiermee instemt, kan de oproeping geschieden door een langs elektronische weg toegezonden leesbaar en reproduceerbaar bericht aan het adres dat door hem voor dit doel aan de Vennootschap is bekend gemaakt.

 

18.7 Een onderwerp, waarvan de behandeling schriftelijk is verzocht door een of meer Aandeelhouders die alleen of gezamenlijk ten minste één honderdste gedeelte van het geplaatste kapitaal vertegenwoordigen, wordt opgenomen in de oproeping of op dezelfde wijze aangekondigd indien de Vennootschap het verzoek niet later dan op de dertigste dag voor die van de vergadering heeft ontvangen en mits geen zwaarwichtig belang van de Vennootschap zich daartegen verzet. Voor de toepassing van dit lid worden met Aandeelhouders gelijkgesteld anderen aan wie het Vergaderrecht toekomt.

 

18.8 Indien de door de wet of de statuten gegeven voorschriften voor het oproepen en agenderen van een Algemene Vergadering en het ter inzage leggen van te behandelen onderwerpen niet in acht zijn genomen, kunnen desondanks rechtsgeldige besluiten worden genomen mits alle Vergadergerechtigden ermee hebben ingestemd dat de besluitvorming over die onderwerpen plaatsvindt en de bestuurders voorafgaand aan de besluitvorming in de gelegenheid zijn gesteld om advies uit te brengen.

ALGEMENE VERGADERING - VERGADERORDE

Artikel 19

 

19.1 De Algemene Vergadering wordt geleid door de voorzitter van het Bestuur of, indien geen voorzitter is aangewezen of deze niet aanwezig is, door de oudste in leeftijd ter vergadering aanwezige bestuurder. Is geen van de bestuurders ter vergadering aanwezig dan voorziet de Algemene Vergadering zelf in haar leiding.

 

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19.2 De voorzitter wijst één van de aanwezigen aan als secretaris van de vergadering voor het houden van de notulen en stelt met deze secretaris de notulen vast, ten blijke waarvan hij deze met de secretaris tekent. De notulen dienen in een notulenregister te worden opgenomen. Indien van het verhandelde ter vergadering een notarieel proces-verbaal wordt opgemaakt, behoeven notulen niet te worden gehouden en is ondertekening van het proces-verbaal door de notaris voldoende.

 

19.3 Iedere bestuurder en de voorzitter van de vergadering is bevoegd opdracht te geven om op kosten van de Vennootschap een notarieel proces-verbaal van het ter vergadering verhandelde te doen opmaken.

 

19.4 Iedere Vergadergerechtigde kan zich ter Algemene Vergadering door een derde doen vertegenwoordigen door middel van een-zulks ter beoordeling van uitsluitend de voorzitter van de vergadering-toereikende schriftelijke volmacht.

 

19.5 De bestuurders hebben als zodanig in de Algemene Vergadering een raadgevende stem.

 

19.6 Het Bestuur kan besluiten dat iedere Vergadergerechtigde bevoegd is om in persoon of bij een schriftelijk gevolmachtigde, door middel van een elektronisch communicatiemiddel aan de Algemene Vergadering deel te nemen, daarin het woord te voeren en voor zover van toepassing het stemrecht uit te oefenen. Voor deelname aan de Algemene Vergadering op grond van de vorige zin is vereist dat de Vergadergerechtigde via het elektronisch communicatiemiddel kan worden geïdentificeerd, rechtstreeks kan kennisnemen van de verhandelingen ter vergadering en voor zover van toepassing het stemrecht kan uitoefenen.

 

19.7 Door het Bestuur kunnen voorwaarden worden gesteld aan het gebruik van het elektronisch communicatiemiddel. De voorwaarden die worden gesteld aan het gebruik van het elektronisch communicatiemiddel worden bij de oproeping bekend gemaakt.

 

19.8 De voorzitter van de vergadering beslist of andere personen dan Vergadergerechtigden worden toegelaten tot de Algemene Vergadering.

ALGEMENE VERGADERING - BESLUITVORMING

Artikel 20

 

20.1 In de Algemene Vergadering geeft ieder aandeel recht op het uitbrengen van één stem.

 

20.2 Het Bestuur kan besluiten dat stemmen die voorafgaand aan de Algemene Vergadering via een elektronisch communicatiemiddel worden uitgebracht, gelijk worden gesteld met stemmen die ten tijde van de vergadering worden uitgebracht. Deze stemmen worden niet eerder uitgebracht dan op de dertigste dag voor die van de vergadering.

 

20.3 Voor een aandeel dat toebehoort aan de Vennootschap of aan een Dochtermaatschappij kan in de Algemene Vergadering geen stem worden uitgebracht; zulks kan evenmin voor een aandeel waarvan de Vennootschap of een Dochtermaatschappij certificaten houdt. Vruchtgebruikers en pandhouders van aandelen die aan de Vennootschap en haar Dochtermaatschappijen toebehoren, zijn evenwel niet van hun stemrecht uitgesloten, indien het vruchtgebruik of pandrecht was gevestigd voordat het aandeel aan de Vennootschap of een Dochtermaatschappij toebehoorde. De Vennootschap of een Dochtermaatschappij kan geen stem uitbrengen voor een aandeel waarop zij een vruchtgebruik of een pandrecht heeft.

 

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20.4 Voor zover bij de wet of de statuten geen grotere meerderheid is voorgeschreven worden alle besluiten genomen met Volstrekte Meerderheid. Ongeldige en blanco stemmen worden niet als uitgebrachte stemmen geteld.

 

20.5 Staken de stemmen omtrent een voorstel over zaken, dan komt geen besluit tot stand. Eén of meer Aandeelhouders of andere stemgerechtigden vertegenwoordigende ten minste de helft van het geplaatste kapitaal hebben het recht om binnen tien dagen na de dag van de vergadering, waarin de stemmen hebben gestaakt, aan het Nederlands Arbitrage Instituut te verzoeken een adviseur te benoemen, teneinde een beslissing over het betreffende voorstel te nemen. De beslissing van de adviseur geldt alsdan als een besluit van de Algemene Vergadering.

 

20.6 Staken de stemmen bij verkiezing van personen, dan vindt herstemming plaats. Staken de stemmen wederom, dan beslist het lot.

 

20.7 Het in de Algemene Vergadering uitgesproken oordeel van de voorzitter van de vergadering omtrent de uitslag van een stemming is beslissend. Hetzelfde geldt voor de inhoud van een genomen besluit, voor zover gestemd werd over een niet schriftelijk vastgelegd voorstel.

 

   Wordt echter onmiddellijk na het uitspreken van het oordeel van de voorzitter de juistheid daarvan betwist, dan vindt een nieuwe stemming plaats, indien de meerderheid van de Algemene Vergadering of, indien de oorspronkelijke stemming niet hoofdelijk of schriftelijk geschiedde, één stemgerechtigde aanwezige dit verlangt. Door deze nieuwe stemming vervallen de rechtsgevolgen van de oorspronkelijke stemming.

 

20.8 Het Bestuur houdt van de genomen besluiten aantekening. De aantekeningen liggen ten kantore van de Vennootschap ter inzage van de Vergadergerechtigden. Aan ieder van dezen wordt desgevraagd afschrift of uittreksel van deze aantekeningen verstrekt tegen ten hoogste de kostprijs.

ALGEMENE VERGADERING - BIJZONDERE BESLUITEN

Artikel 21

 

21.1 Onverminderd het hierna in dit artikel bepaalde, kunnen besluiten tot:

 

  a. wijziging van de statuten;

 

  b. fusie of splitsing in de zin van Boek 2, titel 7 van het BW; en

 

  c. ontbinding, slechts worden genomen met een meerderheid van ten minste twee derden van de uit gebrachte stemmen.

 

21.2 Een besluit tot wijziging van de statuten strekkende tot aanwijzing van een plaats buiten Nederland als plaats waar Algemene Vergaderingen gehouden kunnen worden, kan slechts worden genomen met algemene stemmen in een vergadering waarin het gehele geplaatste kapitaal is vertegenwoordigd en voor zover alle Vergadergerechtigden met de wijziging van de statuten hebben ingestemd.

 

21.3 Een besluit tot wijziging van de statuten dat een wijziging in het stemrecht betreft, kan slechts worden genomen met algemene stemmen in een vergadering waarin het gehele geplaatste kapitaal is vertegenwoordigd.

 

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21.4 De regeling in deze statuten waarbij aan Certificaathouders Vergaderrecht is toegekend, kan slechts met instemming van de betrokken Certificaathouders worden gewijzigd. De vorige zin is van overeenkomstige toepassing op vruchtgebruikers en pandhouders.

 

21.5 Een besluit tot wijziging van de statuten omtrent de berekening van het bedrag dat op ieder aandeel zal worden uitgekeerd in de zin van artikel 2:216 lid 6 BW of omtrent de rechten tot deling in de winst of reserves van de Vennootschap in de zin van artikel 2:216 lid 7 BW, kan slechts worden genomen met instemming van alle Aandeelhouders aan wier rechten de statutenwijziging afbreuk doet.

 

21.6 Een besluit tot vermindering van het nominale bedrag van de aandelen wordt genomen met ten minste twee derden van de uitgebrachte stemmen indien minder dan de helft van het geplaatste kapitaal is vertegenwoordigd.

ALGEMENE VERGADERING - BESLUITVORMING BUITEN VERGADERING

Artikel 22

 

22.1 Besluitvorming van Aandeelhouders kan op andere wijze dan in een vergadering geschieden, mits alle Vergadergerechtigden met deze wijze van besluitvorming hebben ingestemd. Instemming met de wijze van besluitvorming kan langs elektronische weg plaatsvinden. De stemmen worden schriftelijk uitgebracht.

 

22.2 De bestuurders worden voorafgaand aan de besluitvorming als bedoeld in artikel 22.1 in de gelegenheid gesteld om advies uit te brengen.

ACCOUNTANTSONDERZOEK

Artikel 23

 

23.1 De Algemene Vergadering is bevoegd en indien zulks wettelijk is voorgeschreven verplicht, een accountant als bedoeld in artikel 2:393 BW opdracht te verlenen teneinde de door het Bestuur opgemaakte jaarrekening te onderzoeken, daarover verslag uit te brengen aan het Bestuur en een verklaring omtrent de getrouwheid van de jaarrekening af te leggen.

 

23.2 Indien de Algemene Vergadering niet overgaat tot het verlenen van een opdracht aan een accountant, geschiedt het verlenen van de opdracht door het Bestuur.

 

23.3 De opdracht kan worden ingetrokken door de Algemene Vergadering en door het Bestuur als het Bestuur de opdracht heeft verleend. De opdracht kan enkel worden ingetrokken om gegronde redenen; daartoe behoort niet een meningsverschil over methoden van verslaggeving of controlewerkzaamheden.

BOEKJAAR, JAARREKENING

Artikel 24

 

24.1 Het boekjaar van de Vennootschap is gelijk aan het kalenderjaar.

 

24.2 Het Bestuur maakt jaarlijks binnen vijf maanden na afloop van het boekjaar, behoudens verlenging van deze termijn met ten hoogste zes maanden door de Algemene Vergadering op grond van bijzondere omstandigheden, een jaarrekening op en legt het deze voor de Aandeelhouders ter inzage ten kantore van de Vennootschap. Indien de Vennootschap krachtens de wet verplicht is een jaarverslag op te stellen, legt het Bestuur binnen deze termijn ook het jaarverslag ter inzage voor de Aandeelhouders. De jaarrekening wordt on-dertekend door alle bestuurders; indien van één of meer hunner de ondertekening ontbreekt, dan wordt daarvan, onder opgave van de reden, melding gemaakt op de jaarrekening.

 

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24.3 De Vennootschap zorgt er voor dat de opgemaakte jaarrekening, het jaarverslag en de krachtens artikel 2:392 lid 1 BW toe te voegen gegevens vanaf de oproep tot de Algemene Vergadering, bestemd tot hun behandeling, te haren kantore aanwezig zijn. De Vergadergerechtigden kunnen deze stukken aldaar inzien en er kosteloos een afschrift van verkrijgen.

 

24.4 De Algemene Vergadering stelt de jaarrekening vast, tenzij vaststelling van de jaarrekening geschiedt overeenkomstig het bepaalde in artikel 24.5.

 

24.5 Indien alle Aandeelhouders tevens bestuurder van de Vennootschap zijn, geldt ondertekening van de jaarrekening door alle bestuurders tevens als vaststelling van de jaarrekening, mits alle overige Vergadergerechtigden in de gelegenheid zijn gesteld om kennis te nemen van de opgemaakte jaarrekening en met deze wijze van vaststelling hebben ingestemd. Deze vaststelling strekt tevens tot kwijting aan de bestuurders.

 

24.6 De Vennootschap gaat over tot openbaarmaking van de in dit artikel bedoelde stukken en gegevens, indien en voor zover en op de wijze zoals de artikelen 2:394 BW en volgende dit voorschrijven.

UITKERING OP AANDELEN

Artikel 25

 

25.1 De Algemene Vergadering is bevoegd tot bestemming van de winst die door de vaststelling van de jaarrekening is bepaald en tot vaststelling van uitkeringen, voor zover het eigen vermogen groter is dan de reserves die krachtens de wet moeten worden aangehouden.

 

25.2 Een besluit dat strekt tot uitkering heeft geen gevolgen zolang het Bestuur geen goedkeuring heeft verleend. Het Bestuur weigert slechts de goedkeuring indien het weet of redelijkerwijs behoort te voorzien dat de Vennootschap na de uitkering niet zal kunnen blijven voortgaan met het betalen van haar opeisbare schulden.

 

25.3 Bij de berekening van iedere uitkering tellen de aandelen die de Vennootschap in haar kapitaal houdt niet mede.

 

25.4 Bij de berekening van het bedrag, dat op ieder aandeel zal worden uitgekeerd, komt slechts het bedrag van de verplichte stortingen op het nominale bedrag van de aandelen in aanmerking. Van de vorige zin kan telkens met instemming van alle Aandeelhouders worden afgeweken.

 

25.5 Tenzij het Bestuur een ander tijdstip vaststelt, zijn uitkeringen op aandelen onmiddellijk betaalbaar na goedkeuring door het Bestuur van het besluit dat strekt tot uitkering.

 

25.6 De vordering van een Aandeelhouder uit hoofde van dit artikel verjaart door verloop van vijf jaren.

ONTBINDING EN VEREFFENING

Artikel 26

 

26.1 Ingeval van ontbinding van de Vennootschap geschiedt de vereffening door het Bestuur tenzij de Algemene Vergadering anders besluit.

 

26.2 De Algemene Vergadering stelt de beloning van de vereffenaren vast.

 

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26.3 Gedurende de vereffening blijven deze statuten voor zoveel mogelijk van kracht.

 

26.4 Van hetgeen na voldoening van alle schulden van de Vennootschap van haar vermogen overblijft, wordt allereerst op de aandelen terugbetaald hetgeen van het nominale bedrag daarop gestort is. Hetgeen daarna van het vermogen overblijft, wordt uitgekeerd aan de Aandeelhouders naar evenredigheid van het gezamenlijk bedrag van hun aandelen. Op aandelen die de Vennootschap zelf houdt, kan geen uitkering aan de Vennootschap zelf plaatshebben.

 

26.5 Na afloop van de vereffening blijven de boeken en bescheiden van de ontbonden Vennootschap gedurende de door de wet voorgeschreven termijn berusten onder degene die daartoe door de Algemene Vergadering bij het besluit tot ontbinding is aangewezen. Indien een aanwijzing als voormeld door de Algemene Vergadering niet is geschied, geschiedt deze door de vereffenaren.

OVERGANGSBEPALING

Artikel 27

Het eerste boekjaar van de Vennootschap eindigt op éénendertig december tweeduizend dertien.

SLOTVERKLARING

De comparant verklaarde ten slotte:

 

A. in het kapitaal van de Vennootschap wordt deelgenomen door de Oprichter voor twintig duizend (20.000) aandelen; derhalve bedraagt het geplaatste kapitaal twintig duizend United States Dollars (USD 20.000,00);

 

B. de Oprichter zal onverwijld na het ondertekenen van deze akte tot volstorting van de door hem genomen aandelen overgaan; derhalve bedraagt het gestorte kapitaal van de Vennootschap thans nul United States Dollars (USD 0);

 

C. storting in een andere geldeenheid dan die waarin het nominale bedrag van de aandelen luidt is toegestaan;

 

D. voor de eerste maal worden tot bestuurders van de Vennootschap benoemd:

 

  (i) de heer Bruce David Wardinski, wonende te 5805 Ridings Manor Place, Centreville, Virginia 20120-4914, Verenigde Staten van Amerika, geboren te Fort Benning, Georgia, Verenigde Staten van Amerika, op veertien april negentienhonderd zestig; en

 

  (ii) de heer Jurjen Edward Hardeveld, wonende te Gerrit Doustraat 13, 2311 XM Leiden, geboren te Curaçao op twaalf juli negentienhonderd achtenzeventig;

 

E. de kosten die met de oprichting van de Vennootschap verband houden, zullen door de Vennootschap worden betaald.

VOLMACHT

De comparant is gemachtigd bij een onderhandse akte van volmacht welke onmiddellijk na het passeren aan deze akte zal worden gehecht als bijlage.

SLOT

De comparant is mij, notaris, bekend.

 

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Deze akte is verleden te Amsterdam op de dag aan het begin van deze akte vermeld. Nadat vooraf door mij, notaris, de zakelijke inhoud van deze akte aan de comparant is medegedeeld en door mij, notaris, is toegelicht, heeft de comparant verklaard van de inhoud daarvan te hebben kennisgenomen, met de inhoud in te stemmen en op volledige voorlezing daarvan geen prijs te stellen. Onmiddellijk na beperkte voorlezing is deze akte door de comparant en mij, notaris, ondertekend.

(volgt ondertekening)

UITGEGEVEN VOOR AFSCHRIFT

 

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Schedule 4 – Company Subsidiaries

 

1. Playa Resorts Holding B.V.;
2. Playa H&R Holdings B.V.;
3. Perfect Tours NV;
4. IC Sales, LLC;
5. Beach Tour Sales, LLC;
6. Paloma Capital NV;
7. Perfect Timing NV;
8. Inversiones Vilazul S.A.S.;
9. Playa Punta Cana Holding B.V.;
10. Playa Cana B.V.;
11. Playa Man Op LLC;
12. Playa Zana Op LLC;
13. AMR SPE, LLC;
14. AMR SPE II, LLC;
15. AMR Resorts Holdings, LLC;
16. AMR Holdings SPE, LLC;
17. Century Properties S.a.r.l.;
18. Hotel Capri Caribe, S. de R.L. de C.V. ;
19. Servicios Hoteleros de Capri, S. de R.L. de C.V. ;
20. Sardio Investments Limited;
21. Camerón del Caribe, S. de R.L. de C.V. ;
22. Servicios Hoteleros de Punta Cancún, S. de R.L. de C.V. ;
23. Canteloup Holdings Ltd.;
24. Camerón del Pacífico, S. de R.L. de C.V. ;
25. Servicios Hoteleros Pvall, S. de R.L. de C.V. ;
26. Playa Romana B.V.;
27. Playa Riviera Maya B.V.;
28. Playa Cabos B.V.;
29. Playa Management USA LLC;
30. Playa Management LLC;
31. Playa Romana Mar B.V.;
32. Playa Rmaya One, S. de R.L. de C.V. ;
33. Servicios Hoteleros Rmaya One, S. de R.L. de C.V.;
34. Playa Cabos Baja, S. de R.L. de C.V.;
35. Servicios Hoteleros Grand Cabos Baja, S. de R.L. de C.V.

Schedule 4 to the Subscription Agreement


Schedule 5 – Sources and Uses

 

$ in USD Millions   

Sources & Uses

 

($ in millions USD)    Sources  

Common Equity Investment in NewCo by Hyatt

   $ 100.0   

Preferred Equity Investment in NewCo by Hyatt

     225.0   

Preferred Equity Investment in NewCo by Real

     50.0   

Common Equity Investment in NewCo by OldCo Shareholders

     410.7   
  

 

 

 

Total Equity

   $ 785.7   

NewCo Secured Loan

     350.0 (1) 

NewCo Unsecured Notes

     300.0   

Revolving Credit Facility

     —     
  

 

 

 

Total Debt

   $ 650.0   
  

 

 

 

Total Sources

   $ 1,435.7   
  

 

 

 
     Uses  

Net proceeds of Real Portfolio to Seller

   $ 298.7   

Settlement of Existing Debt in Real

     63.3   

NewCo Shares to Real Shareholder

     50.0   

Estimated Working Capital Adjustment

     (4.9

Less: Transaction Deposits (2)

     (7.0
  

 

 

 

Subtotal Real Transaction

   $ 400.1   

Acquisition of OldCo Properties (includes payoff of OldCo debt)

     859.6   

Swap Breakage Costs

     42.5   

Estimated Working Capital Adjustment

     (2.6

Less: 6/28/13 Amortization Payment

     (21.2
  

 

 

 

Subtotal Playa Hotels Transaction

     878.3   

Acquisition of Ritz Jamaica

     64.3   

Less: Transaction Deposits (3)

     (6.4
  

 

 

 

Subtotal Jamaica Transaction

     57.9   

Underwriter Fees (Unsecured Notes)

     6.0   

Agency / Bank Syndicate Fees (Secured Notes)

     5.4   

Legal Fees

     3.7   

Financial / Tax Advisor Fees

     3.1   

Jamaica Closing / Registration Costs

     2.3   

Other Estimated Transaction Costs

     8.1   
  

 

 

 

Estimated Transaction Costs

     28.7   

Retirement of ADIA Convert Loan

     9.2   
  

 

 

 

Excess Cash from transaction

     61.5   
  

 

 

 

Total Uses

   $ 1,435.7   
  

 

 

 
 

 

(1) NewCo Bank Loan Includes $50.0 million note issued to Real seller
(2) An additional deposit of $3.0 million is due to the Real seller once Cofeco has approved the transaction
(3) Includes all deposits made through 6/27/13. The agreement with the sellers requires additional deposits of $2.5 million through August 15.

Schedule 5 to the Subscription Agreement

 


Schedule 6 – Financial Statements

The Financial Statements comprise the highlighted columns shown in the attached document, together with all notes and other comments applicable to such highlighted columns.

Schedule 6 to the Subscription Agreement

 

1


UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The following unaudited pro forma condensed combined financial statements have been derived from the historical audited year ended December 31, 2012, unaudited quarters ended March 31, 2012 and 2013 consolidated financial statements of Playa Hotels & Resorts, S.L., the predecessor (the “Predecessor”) of Playa Resorts Holding B.V. (the “Company”) under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and adopted by the European Union (“EU”) and the historical audited year ended December 31, 2012, unaudited quarters ended March 31, 2012 and 2013 pro forma combined financial statements of BD Real Resorts, S. de R.L. de C.V. and subsidiaries and related parties (“Real Resorts”) under the generally accepted accounting principles in Mexico (“Mexican GAAP”).

We have included the unaudited pro forma condensed combined balance sheet as of March 31, 2013, and the unaudited pro forma condensed combined statements of operations for the year ended December 31, 2012, for the three month period ended March 31, 2013, and for the twelve month period ended March 31, 2013 to illustrate the adjustments to the historical unaudited financial data of the Predecessor and Real Resorts to give effect to the following transactions:

 

  1. the offering of the notes to be issued by the Company (the “Offering”);

 

  2. the acquisition of twelve resorts from the Predecessor, Real Resorts, and the acquisition of the management company that manages certain of those resorts;

 

  3. an investment by HI Holdings Playa B.V. in the form of common equity and preferred shares of Playa Hotels & Resorts B.V. (the “Parent”);

 

  4. the entrance by the Company into a credit facility; and

 

  5. certain other transactions form the Restructuring Transaction (collectively, the “Restructuring Transactions”), as described in the offering memorandum relating to the Offering (the “Offering Memorandum”) and are described in more detail in the following Notes.

The unaudited pro forma condensed combined balance sheet as of March 31, 2013 has been prepared to give effect to the Restructuring Transactions as if they had occurred on March 31, 2013. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2012, the unaudited pro forma condensed combined statement of operations for the three month period ended March 31, 2013, and the unaudited pro forma condensed combined statement of operations for the twelve month period ended March 31, 2013, give effect to the Restructuring Transactions as if they had occurred on January 1, 2012.

The unaudited pro forma condensed combined financial statements do not include adjustments to reflect the acquisition by the Company of a resort in Jamaica that was operated until recently as the Jamaica Ritz Carlton Golf & Spa Resort, Rose Hall, Jamaica because the Company intends to close it for renovation upon completion of the Offering. The pro forma adjustments are described in the accompanying notes to the unaudited pro forma condensed combined financial statements. The pro

Schedule 6 to the Subscription Agreement

 

2


forma adjustments are based upon the best information available and certain assumptions that the Parent and the Company believe are reasonable under the circumstances. The unaudited pro forma condensed combined financial statements do not purport to represent the results of operations or financial condition of the Parent or the Company had the Restructuring Transactions actually occurred as of such date or of the results that the Parent and the Company would have achieved after the Restructuring Transactions and this Offering.

The Restructuring Transactions combine assets contributed by the Predecessor and acquired from Real Resorts, among other transactions. In the Restructuring Transactions, the resorts contributed by the Predecessor are recorded at their historical values as resulting from a transaction between entities under common control. The transaction involving assets acquired from Real Resorts is not between entities under common control and thus reflects the application of purchase accounting. The unaudited pro forma condensed combined financial statements are based on historical values of those of the Predecessor’s resorts that will be in the Company’s portfolio following completion of this Offering and the Restructuring Transactions and preliminary purchase price allocations for such Real Resorts, which are subject to change upon completion of this Offering. The fair value adjustments included in the unaudited pro forma condensed combined financial statements represent the Predecessor’s management’s best estimate of these adjustments based on currently available information. The Parent and the Company cannot assure you that the actual results of our detailed valuation of the properties will be the same or similar to those presented in the following unaudited pro forma condensed combined financial statements.

The unaudited pro forma condensed combined financial statements should be read in conjunction with the information included in the Offering Memorandum under the captions “Use of Proceeds”, “Capitalization”, “Selected Consolidated Financial and Operating Data” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, the historical consolidated financial statements of the Predecessor and the related notes thereto and the historical pro forma combined financial statements of Real Resorts and the related notes thereto.

Schedule 6 to the Subscription Agreement

 

3


Unaudited Pro Forma Condensed Combined Balance Sheet for the Parent and the Company

 

     As of March 31, 2013  
     Historical
Consolidated
of the
Predecessor
    Pro Forma
Adjustment

for Resorts
Remaining
with the
Predecessor (a)
    Resorts
Contributed to
the Company’s
Portfolio
    Historical
Real
Resorts
Contributed

to the
Company (b)
    Pro Forma
Restructuring
Transactions
    Pro
Forma
Debt
Offering
    Pro
Forma
Total
 
     (in thousands of USD)  

ASSETS

              

Non-current assets

              

Property and equipment

   $ 859,784      $ 177,987      $ 681,797      $ 157,124      $ 319,876 (c)    $ —        $ 1,165,119   
             6,322 (c)     

Investment in associates

     636          636              636   

Long term deposits and other assets

     3,082        1,400        1,682        1,693            3,375   

Accounts receivable from related parties

           4,715        (4,715 )(e)     

Deferred tax assets

     30,220        9,628        20,592        28,331        (20,499 )(c)        28,424   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current assets

   $ 893,722      $ 189,015      $ 704,707      $ 191,863      $ 300,984      $ —        $ 1,197,554   

Current assets

              

Inventories

   $ 7,097      $ 509      $ 6,588      $ 750      $ —        $ —        $ 7,338   

Trade and other receivables

     41,621        10,807        30,814        20,854            51,668   

Accounts receivable from related parties

     837        617        220        791        (791 )(e)        220   

Prepayments and other current assets

     14,918        5,094        9,824        743        (1,000 )(d)        9,567   

Cash and cash equivalents

     46,980        18,077        28,903        2,270        36,309 (d)      70,439 (j)      137,921   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

   $ 111,453      $ 35,104      $ 76,349      $ 25,408      $ 34,518      $ 70,439      $ 206,714   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

   $ 1,005,175      $ 224,119      $ 781,056      $ 217,271      $ 335,502      $ 70,439      $ 1,404,268   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EQUITY AND LIABILITIES

              

Equity

              

Preferred equity

   $ —        $ —        $ —        $ —        $ 275,000 (g)    $ —        $ 275,000   

Share capital

     8,221        8,221          108,982        (108,982 )(f)     

Common share premium

     598,760        76,903        521,857          100,000 (g)        510,700   
             (111,157 )(g)     

Retained earnings (accumulated deficit)

     (415,485     (134,633     (280,852     (57,251     11,442 (d)      (77,264 )(h)      (276,451
             (10,021 )(d)      (6,984 )(h)   
             57,251 (f)      (3,289 )(i)   
             111,157 (g)      (7,440 )(i)   
             (13,200 )(c)     

Translation adjustments

     (1,923     14,093        (16,016           (16,016

Cash flow hedge reserve

     (8,426     (986     (7,440         7,440 (i)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total owners’ equity

   $ 181,147      $ (36,402   $ 217,549      $ 51,731      $ 311,490      $ (87,537   $ 493,233   

Non-current liabilities

              

Borrowings

   $ 511,678      $ 178,829      $ 332,849      $ 54,723      $ —        $ (339,833 )(h)    $ —     
               6,984 (h)   
               (54,723 )(c)   

Term loan

               346,500 (h)      338,626   
               (7,874 )(h)   

Senior notes

               300,000 (h)      289,195   
               (10,805 )(h)   

Derivative financial liability

     33,899        3,966        29,933            (29,933 )(i)   

Deferred tax liabilities

     121,856        33,432        88,424        9,250        75,464 (c)        173,138   

Other non-current liabilities

     5,584        2,159        3,425          5,337 (c)      (43 )(j)      8,719   

Accounts payable to related parties

           64,332        (64,332 )(e)     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-current liabilities

   $ 673,017      $ 218,386      $ 454,631      $ 128,305      $ 16,469      $ 210,273      $ 809,678   

Current liabilities

              

Borrowings

   $ 42,800      $ 11,920      $ 30,880      $ 11,233      $ —        $ (30,880 )(h)    $ —     
               (11,233 )(c)   

Term loan

               3,500 (h)      3,500   

Derivative financial liability

     15,497        1,813        13,684            (13,684 )(i)   

Trade and other payables

     71,818        10,208        61,610        24,130        1,915 (c)        95,155   
             7,500 (c)     

Accounts payable to related parties

     19,287        18,321        966        1,872        (1,872 )(e)        966   

Current income tax payable

     1,609        (127     1,736              1,736   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

   $ 151,011      $ 42,135      $ 108,876      $ 37,235      $ 7,543      $ (52,297   $ 101,357   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

   $ 1,005,175      $ 224,119      $ 781,056      $ 217,271      $ 335,502      $ 70,439      $ 1,404,268   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Schedule 6 to the Subscription Agreement

 

4


Notes to the Unaudited Pro Forma Condensed Combined Balance Sheet

(in thousands of USD)

Restructuring Transaction Adjustments

 

(a) Those of the Predecessor’s resorts that are not contributed to the Company are removed at historical values as of March 31, 2013 to reflect the completion of the Offering and Restructuring Transaction. This has been performed on a legal entity basis except for the derivative financial liability and cash flow hedge which has been allocated based on 11.7% of the related debt, the intercompany amount of $534 arising from the settlement of the accounts receivable and payables which has been adjusted on an entity by entity basis, and the deferred financing fees of $925 adjusted for the parent company.

 

(b) The assets that are being contributed to the Company by Real Resorts are presented historically in Pesos under Mexican GAAP. The balance sheet below provides adjustments to convert the balance sheet to U.S. dollars.

Real Resorts Pro Forma Condensed Combined Balance Sheet Conversion to USD

 

     As of March 31, 2013  
     Historical         
     Combined         
     Real Resorts      As Converted  
     Pesos      to  
     (Unaudited)      USD (1)  
     (in thousands)  

ASSETS

     

Non-current assets

     

Property and equipment

   $ 1,942,199       $ 157,124   

Long term deposits and other assets

     20,931         1,693   

Accounts receivable from related parties

     58,276         4,715   

Deferred tax assets

     350,192         28,331   
  

 

 

    

 

 

 

Total non-current assets

   $ 2,371,598       $ 191,863   

Current assets

     

Inventories

   $ 9,274       $ 750   

Trade and other receivables

     257,779         20,854   

Accounts receivable from related parties

     9,780         791   

Prepayments and other current assets

     9,185         743   

Cash and cash equivalents

     28,059         2,270   
  

 

 

    

 

 

 

Total current assets

   $ 314,077       $ 25,408   
  

 

 

    

 

 

 

TOTAL ASSESTS

   $ 2,685,675       $ 217,271   
  

 

 

    

 

 

 

EQUITY AND LIABILITIES

     

Equity

     

Share capital

   $ 1,347,120       $ 108,982   

Retained earnings (accumulated deficit)

     (707,665      (57,251
  

 

 

    

 

 

 

Total owner’s equity

   $ 639,455       $ 51,731   
  

 

 

    

 

 

 

Non-current liabilities

     

Borrowings

   $ 676,422       $ 54,723   

Deferred tax liabilities

     114,333         9,250   

Accounts payable to related parties

     795,200         64,332   
  

 

 

    

 

 

 

Total non-current liabilities

   $ 1,585,955       $ 128,305   

Current liabilities

     

Borrowings

   $ 138,845       $ 11,233   

Trade and other payables

     298,280         24,130   

Accounts payable to related parties

     23,140         1,872   
  

 

 

    

 

 

 

Total current liabilities

   $ 460,265       $ 37,235   
  

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

   $ 2,685,675       $ 217,271   
  

 

 

    

 

 

 

 

(1) Pesos are converted to USD at the March 31, 2013 spot rate of 0.0809.

 

Schedule 6 to the Subscription Agreement

 

5


(c) For the purchase of equity interest of Real Resorts, the estimated gain on the purchase of Real Resorts is the difference between acquired net assets and the total consideration.

 

Real Resorts purchase price

  

Term debt to Real Resorts shareholder (1)

   $ 50,000   

Cash purchase price

     246,040   
  

 

 

 
     296,040   

Issuance of preferred equity

     50,000   

Payment of Real Resorts debt

     65,956   
  

 

 

 
     411,996   

Non-current deferred consideration payable to Real Resorts (2)

     5,337   

Current deferred consideration payable to Real Resorts (2)

     1,915   

Working capital adjustment

     (4,928

Airplane (3)

     7,500   
  

 

 

 

Total consideration

   $ 421,820   

Less: net assets acquired

  

Net Real Resorts assets and liabilities

   $ 51,731   

Settlement of debt

     65,956   

Settlement of related party payable (see note e)

     60,698   

Estimated fair value of airplane

     6,322   

Increase in fair value of Real Resorts real and personal property (4)

     319,876   

Deferred tax liability basis difference for assets acquired (5)

     (75,464

Deferred tax asset basis difference for assets acquired (5)

     (20,499
  

 

 

 

Net assets acquired

     408,620   
  

 

 

 

Estimated gain on purchase of Real Resorts

   $ 13,200   
  

 

 

 

 

(1) Term debt to the Real Resorts shareholder is included in the $350,000 term loan amount in note (h).
(2) Entry to record present value of deferred consideration payable to Real Resorts shareholder on a quarterly basis over four years. Amount represents the estimated present value of the difference between the guaranteed quarterly amount of $1,125,000 and the estimated quarterly interest received by the Real Resorts shareholder on the $50 million of Senior Secured Term Notes over the same four year period.
(3) The Company has an obligation with Real Resorts to purchase an airplane Learjet 60XR after the Restructuring Transaction and Offering are completed.
(4) Estimate is based on an appraisal of real and personal property by a third party and is subject to further adjustment upon completion of a formal purchase price allocation valuation.
(5) Total deferred tax liability adjustment for buildings and fixed assets increased to fair market value for book purposes for which there is no increase in tax basis is $95,963. The total deferred tax liability is bifurcated into a deferred tax asset reduction of $20,499 to reduce the historical Real deferred tax asset related to fixed assets and a deferred tax liability increase of $75,464 to book the remaining step-up in basis for book purposes. The deferred tax adjustments are calculated at the statutory tax rate of 30%.

 

Schedule 6 to the Subscription Agreement

 

6


(d) The cash balance as of completion of the Restructuring Transactions will be used to purchase the resorts that will comprise the Company’s portfolio, as well as the management company that manages certain of those resorts. The sources and uses of cash are as follows:

 

Sources:

  

Proceeds from investment by Hyatt in common equity of the Parent (see note g)

   $ 100,000   

Proceeds from the investment by Hyatt in preferred equity of the Parent (see note g)

     225,000   
  

 

 

 
   $ 325,000   

Uses:

  

Estimated transaction fees (see statement of operations note c)

     10,021   

Predecessor working capital adjustment net of other fees owed to the Predecessor

     (11,442

Real Resorts working capital adjustment

     (4,928

Purchase of Real Resorts properties net of initial transaction deposit of $1,000 (see note c)

     295,040   
  

 

 

 
     288,691   
  

 

 

 

Net cash adjustment

   $ 36,309   
  

 

 

 

 

(e) For the acquisition by the Company from Real Resorts, amounts represent settlement of related party payables and receivables with the primary shareholder of Real Resorts prior to the Restructuring Transactions.

 

Real Resorts non-current accounts receivable from related parties

   $ 4,715   

Real Resorts current accounts receivable from related parties

     791   

Real Resorts non-current accounts payable to related parties

     (64,332

Real Resorts current accounts payable to related parties

     (1,872
  

 

 

 

Real Resorts net payable to related parties

   $ (60,698
  

 

 

 

 

(f) Adjustment to reflect elimination of the historical owners’ equity of Real Resorts.

 

(g) Adjustments to equity of the Parent due to the Restructuring Transactions will be as follows:

 

Hyatt preferred equity of the Parent

   $ 225,000      

Real Resorts preferred equity of the Parent

     50,000      
  

 

 

    

Total preferred equity of the Parent

      $ 275,000   
     

 

 

 

Hyatt common equity of the Parent

      $ 100,000   
     

 

 

 

Company common equity

   $ 410,700      

Less: Predecessor historical equity

     521,857      
  

 

 

    

Equity reclassification to accumulated deficit

      $ (111,157
     

 

 

 

 

Schedule 6 to the Subscription Agreement

 

7


Debt Offering Adjustments

 

(h) Following the completion of this Offering, we incur approximately $650 million of outstanding indebtedness, comprised of approximately $350 million of term loan balances outstanding under the Term Loan Tranche of our Credit Facility and $300 million principal amount of the Notes.

Adjustments to reflect those debt transactions include:

1) Adjustments to reflect the repayment of existing debt and elimination of associated deferred financing fees.

 

Non-Current

  

Payment of the Company’s portion of Predecessor debt

   $ 339,833   

Elimination of the Company’s portion of the Predecessor deferred financing fees

     (6,984
  

 

 

 

Historical net Company portion of Predecessor borrowings

   $ 332,849   
  

 

 

 

Current

  

Payment of the Company’s portion of Predecessor debt

   $ 30,880   

2) Adjustments to record the negotiated payment of $77,264 of existing Predecessor debt by the Company.

3) Adjustments to record new debt and related deferred financing costs.

 

Non-current

  

Credit facility term loan

   $ 346,500   

Financing Fees

     (7,874
  

 

 

 
   $ 338,626   
  

 

 

 

Senior note

   $ 300,000   

Financing Fees

     (10,805
  

 

 

 
   $ 289,195   
  

 

 

 

Current

  

Credit facility term loan

   $ 3,500   

As part of the credit facility to be entered into by the Company upon completion of the Offering and the Restructuring Transactions, the Company has access to a $25M revolving credit tranche. The pro forma financial statements are prepared on the basis that no funds are drawn on the revolving credit tranche.

 

Schedule 6 to the Subscription Agreement

 

8


(i) Extinguishment of derivative financial liability upon termination of a swap agreement of the Predecessor upon completion of the Restructuring Transactions.

 

Non-current

   $ 29,933   

Current

     13,684   

Company portion of additional termination liability

     3,289   
  

 

 

 
   $ 46,906   

The cash flow hedge reserve of $7,440 is eliminated along with all other historical debt of the Predecessor and Real Resorts.

 

(j) The cash balance as of completion of the Offering will be used to pay fees and reduce debt. The sources and uses of cash are as follows:

 

Sources:

  

Proceeds to the Company of the Offering and the Credit Facility (see note h)

   $ 650,000   

Uses:

  

Estimated deferred financing fees (see note h 3)

   $ 18,679   

Payoff of the Predecessor’s non-current debt for the Company’s properties (see note h)

     339,833   

Payoff of the Predecessor’s current debt for the Company’s properties (see note h)

     30,880   

Additional negotiated payment of existing Predecessor debt by the Company (see note h)

     77,264   

Payment of the Company’s portion of accrued interest on swap agreement

     43   

Payment of the Company’s portion of interest rate swap agreement (see note i)

     46,906   

Payment of Real Resorts debt (see note c)

     65,956   
  

 

 

 
     579,561   
  

 

 

 

Net cash adjustment

   $ 70,439   
  

 

 

 

Note: The tax implications of the pro forma balance sheet adjustments have been considered relative to the statutory rate of the respective jurisdictions and adjustments recorded where necessary.

 

Schedule 6 to the Subscription Agreement

 

9


Unaudited Pro Forma Condensed Combined Statement of Operations

 

     For the twelve months ended March 31, 2013  
           Pro Forma           Historical                    
           Adjustment           Real                    
     Historical     for Resorts     Resorts     Resorts     Pro     Pro        
     Consolidated     Remaining     Contributed to     Contributed     Forma     Forma     Pro  
     of the     with the     the Company’s     to the     Restructuring     Debt     Forma  
     Predecessor     Predecessor (a)     Portfolio     Company (b)     Transactions     Offering     Total  
     (in thousands of USD)  

Continuing Operations:

              

Operating Revenue

   $ 310,076      $ 90,002      $ 220,074      $ 126,442      $ —        $ —        $ 346,516   

Cost of sales and other expenses

     (65,503     (21,919     (43,584     (21,428         (65,012

Operating expenses

     (182,823     (52,485     (130,338     (68,250     5,284 (c)        (193,304

Depreciation and amortization expense

     (54,706     (12,985     (41,721     (9,763     (5,091 )(d)        (56,575
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

   $ 7,044      $ 2,613      $ 4,431      $ 27,001      $ 193      $ —        $ 31,625   

Other financial income

   $ 170      $ (39   $ 209      $ (7,046   $ —        $ —        $ (6,837

Finance costs

     (40,410     (17,231     (23,179     (4,910       (16,264 )(f)      (44,353

Net result of exchange differences

     988        576        412        5,707            6,119   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CONSOLIDATED GAIN (LOSS) BEFORE TAXES

   $ (32,208   $ (14,081   $ (18,127   $ 20,752      $ 193      $ (16,264   $ (13,446

Income tax benefit (expense)

   $ (2,848   $ (1,302   $ (1,546   $ (3,245   $ 16 (e)    $ (1,387 )(e)    $ (6,162
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAIN (LOSS) FOR THE YEAR

   $ (35,056   $ (15,383   $ (19,673   $ 17,507      $ 209      $ (17,651   $ (19,608

Other comprehensive income:

              

Net gain on cash flow hedges

   $ 2,144      $ 251      $ 1,893      $ —        $ —        $ (1,893 )(g)    $ —     

Tax effect on transfer to profit and loss for cash flow hedge

              

Translation adjustment reserves

     (1       (1         1 (g)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL COMPREHENSIVE GAIN (LOSS) FOR THE YEAR

   $ (32,913   $ (15,132   $ (17,781   $ 17,507      $ 209      $ (19,543   $ (19,608
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Unaudited Pro Forma Condensed Combined Statement of Operations   
     For the year ended December 31, 2012  
           Pro Forma           Historical                    
           Adjustment           Real                    
     Historical     for Resorts     Resorts     Resorts     Pro     Pro        
     Consolidated     Remaining     Contributed to     Contributed     Forma     Forma     Pro  
     of the     with the     the Company’s     to the     Restructuring     Debt     Forma  
     Predecessor     Predecessor (a)     Portfolio     Company (b)     Transactions     Offering     Total  
     (in thousands of USD)  

Continuing Operations:

              

Operating Revenue

   $ 307,730      $ 87,700      $ 220,030      $ 124,982      $ —        $ —        $ 345,012   

Cost of sales and other expenses

     (64,740     (21,468     (43,272     (21,047         (64,319

Operating expenses

     (181,190     (50,824     (130,366     (68,304     5,304 (c)        (193,366

Depreciation and amortization expense

     (54,592     (12,983     (41,609     (9,676     (5,178 )(d)        (56,463
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

   $ 7,208      $ 2,425      $ 4,783      $ 25,955      $ 126      $ —        $ 30,864   

Other financial income

   $ 220      $ 5      $ 215      $ (5,851   $ —        $ —        $ (5,636

Finance costs

     (43,298     (19,148     (24,150     (5,271       (14,990 )(f)      (44,411

Net result of exchange differences

     (783     (1,224     441        6,678            7,119   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CONSOLIDATED GAIN (LOSS) BEFORE TAXES

   $ (36,653   $ (17,942   $ (18,711   $ 21,511      $ 126      $ (14,990   $ (12,064

Income tax benefit (expense)

   $ (781   $ (2,352   $ 1,571      $ (519   $ (11 )(e)    $ 1,259 (e)    $ 2,300   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAIN (LOSS) FOR THE YEAR

   $ (37,434   $ (20,294   $ (17,140   $ 20,992      $ 115      $ (13,731   $ (9,764

Other comprehensive income:

              

Net (loss) on cash flow hedges

   $ (476   $ (56   $ (420   $ —        $ —        $ 420 (g)    $ —     

Tax effect on transfer to profit and loss for cash flow hedge

              

Translation adjustment reserves

     32        4        28            (28 )(g)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL COMPREHENSIVE GAIN (LOSS) FOR THE YEAR

   $ (37,878   $ (20,346   $ (17,532   $ 20,992      $ 115      $ (13,339   $ (9,764
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Schedule 6 to the Subscription Agreement

 

10


Unaudited Pro Forma Condensed Combined Statement of Operations   
     For the three months ended March 31, 2013  
           Pro Forma           Historical                    
           Adjustment           Real                    
     Historical     for Resorts     Resorts     Resorts     Pro     Pro        
     Consolidated     Remaining     Contributed to     Contributed     Forma     Forma     Pro  
     of the     with the     the Company’s     to the     Restructuring     Debt     Forma  
     Predecessor     Predecessor (a)     Portfolio     Company (b)     Transactions     Offering     Total  
     (in thousands of USD)  

Continuing Operations:

              

Operating Revenue

   $ 99,475      $ 27,191      $ 72,284      $ 39,854      $ —        $ —        $ 112,138   

Cost of sales and other expenses

     (17,921     (5,867     (12,054     (5,874         (17,928

Operating expenses

     (51,513     (14,579     (36,934     (16,877     1,083 (c)        (52,728

Depreciation and amortization expense

     (13,630     (3,282     (10,348     (2,172     (1,541 )(d)        (14,061
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

   $ 16,411      $ 3,463      $ 12,948      $ 14,931      $ (458   $ —        $ 27,421   

Other financial income

   $ 49      $ 15      $ 34      $ 650      $ —        $ —        $ 684   

Finance costs

     (8,775     (4,238     (4,537     (787       (5,752 )(f)      (11,076

Net result of exchange differences

     825        621        204        3,934            4,138   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CONSOLIDATED GAIN (LOSS) BEFORE TAXES

   $ 8,510      $ (139   $ 8,649      $ 18,728      $ (458   $ (5,752   $ 21,167   

Income tax benefit (expense)

   $ (2,065   $ (342   $ (1,723   $ (3,110   $ 91 (e)    $ 1,146 (e)    $ (3,596
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAIN (LOSS) FOR THE YEAR

   $ 6,445      $ (481   $ 6,926      $ 15,618      $ (367   $ (4,606   $ 17,571   

Other comprehensive income:

              

Net gain on cash flow hedges

   $ 3,950      $ 462      $ 3,488      $ —        $ —        $ (3,488 )(g)    $ —     

Tax effect on transfer to profit and loss for cash flow hedge

              

Translation adjustment reserves

     (1       (1         1 (g)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL COMPREHENSIVE GAIN (LOSS) FOR THE YEAR

   $ 10,394      $ (19   $ 10,413      $ 15,618      $ (367   $ (8,093   $ 17,571   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes to the Unaudited Pro Forma Condensed Combined Statement of Operations

(in thousands of USD)

Restructuring Transaction Adjustments

 

(a) The Predecessor resorts that are not contributed to the Company are removed at historical values for the respective periods to reflect the completion of this Offering and the Restructuring Transactions. This has been performed on a legal entity basis except for the costs associated with the derivative financial liability and other comprehensive income which has been allocated based on 11.7% of the related debt, in addition to, an asset management fee of $555 to the parent Company.

 

(b) The resorts and management company that are being contributed to the Company by Real Resorts pursuant to the Restructuring Transactions are presented historically in Pesos under Mexican GAAP. The statement of operations below provides adjustments to convert the Statement of Operations to U.S. dollars.

 

Schedule 6 to the Subscription Agreement

 

11


Real Resorts Pro Forma Condensed Combined Statement of Operations Conversion to USD

 

     For the twelve months ended  
     March 31, 2013  
     Historical         
     Combined         
     Real Resorts      As Converted  
     Pesos      to  
     (Unaudited)      USD (1)  
     (in thousands)  

Continuing Operations:

     

Operating revenue

   $ 1,652,832       $ 126,442   

Cost of sales and other expenses

     (280,111      (21,428

Operating expenses

     (892,152      (68,250

Depreciation and amortization expense

     (127,618      (9,763
  

 

 

    

 

 

 

OPERATING INCOME

   $ 352,951       $ 27,001   

Other financial income

   $ (92,110    $ (7,046

Finance costs

     (64,182      (4,910

Net result of exchange differences

     74,599         5,707   
  

 

 

    

 

 

 

GAIN BEFORE TAXES ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 271,258       $ 20,752   

Income tax benefit (expense)

     (42,417      (3,245
  

 

 

    

 

 

 

GAIN FOR THE YEAR ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 228,841       $ 17,507   
  

 

 

    

 

 

 

 

(1) Pesos are converted to USD at the twelve months ended March 31, 2013 average rate of 0.0765.

 

Schedule 6 to the Subscription Agreement

 

12


Real Resorts Pro Forma Condensed Combined Statement of Operations Conversion to USD

 

     For the twelve months ended  
     December 31, 2012  
     Historical         
     Combined         
     Real Resorts      As Converted  
     Pesos      to  
     (Unaudited)      USD (1)  
     (in thousands)  

Continuing Operations:

     

Operating revenue

   $ 1,646,670       $ 124,982   

Cost of sales and other expenses

     (277,299      (21,047

Operating expenses

     (899,918      (68,304

Depreciation and amortization expense

     (127,477      (9,676
  

 

 

    

 

 

 

OPERATING INCOME

   $ 341,976       $ 25,955   

Other financial income

   $ (77,086    $ (5,851

Finance costs

     (69,449      (5,271

Net result of exchange differences

     87,983         6,678   
  

 

 

    

 

 

 

GAIN BEFORE TAXES ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 283,424       $ 21,511   

Income tax benefit (expense)

     (6,841      (519
  

 

 

    

 

 

 

GAIN FOR THE YEAR ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 276,583       $ 20,992   
  

 

 

    

 

 

 

 

(1) Pesos are converted to USD at the 2012 average rate of 0.0759.

 

Schedule 6 to the Subscription Agreement

 

13


Real Resorts Pro Forma Condensed Combined Statement of Operations Conversion to USD

 

     For the three months ended  
     March 31, 2013  
     Historical         
     Combined         
     Real Resorts      As Converted  
     Pesos      to  
     (Unaudited)      USD (1)  
     (in thousands)  

Continuing Operations:

     

Operating revenue

   $ 504,478       $ 39,854   

Cost of sales and other expenses

     (74,359      (5,874

Operating expenses

     (213,627      (16,877

Depreciation and amortization expense

     (27,491      (2,172
  

 

 

    

 

 

 

OPERATING INCOME

   $ 189,001       $ 14,931   

Other financial income

   $ 8,234       $ 650   

Finance costs

     (9,966      (787

Net result of exchange differences

     49,795         3,934   
  

 

 

    

 

 

 

GAIN BEFORE TAXES ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 237,064       $ 18,728   

Income tax benefit (expense)

     (39,361      (3,110
  

 

 

    

 

 

 

GAIN FOR THE YEAR ATTRIBUTABLE TO OWNERS OF REAL RESORTS

   $ 197,703       $ 15,618   
  

 

 

    

 

 

 

 

  (1) Pesos are converted to USD at the three months ended March 31, 2013 average rate of 0.0790.

 

(c) Adjustment to align the capitalization policy for building improvements, furniture, fixtures and equipment of Real Resorts to that of the Company as it will have a continuing impact on the operations.

 

(d) The impact of depreciation expense from the increase in the fair value of various fixed assets of Real Resorts are as follows:

 

     Useful Life  

Buildings and improvements

     15 - 20 years   

Furniture, fixtures and equipment

     3 - 10 years   

 

     Year ended      Three months      Twelve months  
     December 31,
2012
     ended March 31,
2013
     ended March 31,
2013
 

Estimated depreciation of fixed assets

   $ 14,854       $ 3,713       $ 14,854   

Less: Historic depreciation of fixed assets

     9,676         2,172         9,763   
  

 

 

    

 

 

    

 

 

 

Pro forma adjustment for fixed asset depreciation

   $ 5,178       $ 1,541       $ 5,091   
  

 

 

    

 

 

    

 

 

 

 

Schedule 6 to the Subscription Agreement

 

14


(e) Adjustment to apply the effective tax rate of the resorts contributed to the Company’s portfolio to the pro forma adjustments.

Note: Estimated transaction fees, other than deferred financing costs that have been capitalized, of $10,021 include costs for professional services for legal, accounting and consulting fees, as well as, general costs for the Restructuring Transactions. These costs have not been included in the pro forma adjustments. For the three months ending March 31, 2013, the Company incurred $520 of transaction fees.

Debt Offering Adjustments

 

(f) Represents the recording of interest expense as a result of the issuance of the term loan tranche of the credit facility and the proceeds of the Offering, calculated as follows:

 

Instruments

   Outstanding
Balance
     Rate     Year ended
December 31,
2012
    Three months
ended
March 31,
2013
    Twelve months
ended
March 31,
2013
 

Term loan B (1)(3)

   $ 350,000         5.00   $ 17,676      $ 4,331      $ 17,632   

Senior unsecured notes (2)

     300,000         8.00     24,000        6,000        24,000   
       

 

 

   

 

 

   

 

 

 

Cash interest from new debt

        $ 41,676      $ 10,331      $ 41,632   

Amortization of deferred financing fees

          2,735        745        2,721   
       

 

 

   

 

 

   

 

 

 

Interest expense from new debt

        $ 44,411      $ 11,076      $ 44,353   

Less: Historical Predecessor interest expense allocated to the Company

          (24,150     (4,537     (23,179

Less: Historical Real Resorts interest expense

          (5,271     (787     (4,910
       

 

 

   

 

 

   

 

 

 

Net interest expense adjustment

        $ 14,990      $ 5,752      $ 16,264   
       

 

 

   

 

 

   

 

 

 

 

(1) Based on the stated rate of 4.00% plus the LIBOR floor of 1.00% for the term loan B.
(2) Based on the stated rate of 8.00% for the senior unsecured notes.
(3) Based on the stated rate of 4.00% plus the LIBOR floor of 1.00% for the revolver. As part of the credit facility, the Company has access to a $25M revolving credit tranche. The pro forma financial statements are prepared on the basis that no funds are drawn on the revolving credit tranche.

 

(g) Adjustment to record the elimination of other comprehensive income as a result of the settlement of historical debt.

 

Schedule 6 to the Subscription Agreement

 

16


Schedule 7 – Disclosure Letter

The inclusion of a disclosure item in this Schedule 7 shall not be deemed to imply that such matter is required to

be disclosed pursuant to relevant section of the Subscription Agreement.

Part 5(b) No Conflicts.

Third Party Approvals” means:

 

    Execution of a payoff letter, waiver, release or consent of the lenders party to the Amended and Restated Mercantile Credit Agreement in the amount of US$535,000,000 dated as of July 30, 2010 by and between Playa Hotels & Resorts S.L. and certain of its subsidiaries, Barcelo Corporación Empresarial S.A. and a syndicate of financial institutions (the “Syndicated Loan Agreement”), and all mortgage, pledge and other agreements entered into in connection therewith (“Related Pledges”), including those set forth on Appendix A to this Schedule 7.

 

    Approval of the Investment Committee dated June 11, 2013 and approval the Board of Directors dated June 18, 2013 each pursuant to the Amended and Restated Investors Agreement for Playa Hotels & Resorts S.L., dated August 4, 2010 (the “Playa Spain Investors Agreement”), which have been obtained.

 

    Execution of a Transaction Agreement by and among the Company, Playa Hotels & Resorts, S.L., AMResorts Holdings, L.P. and the other parties named therein and the amendments thereto (the “AMR Termination Agreement”) in relation to amendment of the Hotel Management Agreements with AMR Resort Management LLC or AMR Management MC S. de R.L. de C.V., as the case may be, and their respective affiliates, and the related Services Agreements, Marketing Services Agreements and Room Sales Agreements in respect of Dreams Cancun, Dreams Puerto Vallarta, Secrets Capri, Dreams Puerto Aventuras, Dreams Punta Cana, Dreams Palm Beach and Dreams La Romana, each as modified pursuant to the Transaction Agreement (the “AMR Management Agreements”).

 

    Execution of a Termination Notice to Grubarges Gestion Hotelera Mexicana, S.A. de C.V., Caribbean Hotel Agency, S.A. and Quiroocan, S.A. de C.V. (the “Barcelo Termination Notice”) in relation to the termination of the Hotel Management Agreement and related agreements in respect of the Hotel Barceló Los Cabos Resort (the “Barcelo Management Agreement”).

Regulatory Approvals” means:

 

    Approval from the Mexican Federal Competition Commission (Comisión Federal de Competencia). Notification of the proposed acquisition of the Shares by the Subscriber pursuant to the Subscription Agreement was made on June 26, 2013. Notification of the transactions contemplated by the Real Acquisition Agreement, and of the intended distribution by Playa Hotels & Resorts SL to its shareholder, of shares in the Company that it will receive pursuant to the Sale and Purchase Agreement, was made on June 14, 2013.

 

    The following new subsidiaries are Dutch entities whose shares have not yet been paid up: Playa Hotels & Resorts B.V., Hotel Gran Porto Real B.V., Hotel Royal Cancun B.V., Hotel Gran Caribe Real B.V., and Hotel Royal Playa del Carmen B.V. Once the shares have been paid up, a filing will need to be made with the Dutch Chamber of Commerce (Trade Register).

 

    Pre-Closing registration of the new sole shareholders of each of Playa H&R Holdings B.V. Holdings B.V., Playa Romana B.V., Playa Riviera Maya B.V., Playa Cabos B.V., Playa Lucia B.V. and Playa Grubarges Hotels B.V.


    As soon as practicable after the Closing but in no event later than as required by Law, registration with the Dutch Chambers of Commerce of the amendment to the Articles of Association, the issuance of Shares, and the new sole shareholder of Playa Resorts, and the management board change of Playa Resorts.

 

    As soon as practicable after the Closing but in no event later than as required by Law, registration of the management board changes of Company and the Company Subsidiaries.

Part 5(e) Subsidiaries.

The Company, through its subsidiary Inversiones Vilazul S.A.S, holds a 25% interest in Invermax S.A., incorporated in the Dominican Republic.

Part 5(f) Capitalization.

The capitalization of certain of the Company Subsidiaries and New Subsidiaries as set forth below as of immediately after Closing may be modified by changes to their outstanding capital stock and/or the percentage ownership of the holders of the Company Subsidiaries and New Subsidiaries as a result of the consummation of the Transactions; provided that, notwithstanding any such modifications, each Company Subsidiary and New Subsidiary shall continue to be directly or indirectly 100% owned by the Company, free and clear of all Liens other than Permitted Liens.

 

Entity Name

  

Jurisdiction of
Incorporation or
Formation

  

Outstanding Capital

Stock

  

Shareholders/members

(Approximate %

ownership)

AMR Holdings SPE, LLC    Cayman Islands    1000 Class A shares; 1 Class B share (held by the registered agent)    AMR Resort Holdings, LLC (100%)
AMR Resort Holdings, LLC    Nevis    6 Membership Interests    AMR SPE II, LLC (100%)
AMR SPE, LLC    Delaware    1 Membership Interest    Plaza Zana Op LLC (100%)
AMR SPE II, LLC    Delaware    1 Membership Interest    AMR SPE, LLC (100%)
Beach Tour Sales, LLC    Nevis    N/A    Playa Resorts Holding B.V. (100%)
Cameron del Caribe, S. de R.L. de C.V.    Mexico    2 equity participations    Sardio Investments Limited (50%) and Canteloup Holdings Ltd. (50%)
Cameron del Pacífico, S. de R.L. de C.V.    Mexico    2 equity participations    Sardio Investments Limited (50.30%) and Canteloup Holdings Ltd. (49.70%)
Canteloup Holdings Ltd.    Bahamas    50,000 ordinary shares    AMR Holdings SPE, LLC (100%)
Century Properties S.a.r.l.    Luxembourg    1,520 ordinary shares    AMR Holdings SPE, LLC (100%)
Hotel Capri Caribe, S. de R.L. de C.V.    Mexico    2 equity participations    Century Properties S.a.r.l. (98%) and Sardio Investments Limited (2%)
IC Sales, LLC    Nevis    1 Membership Interest    Playa Resorts Holding B.V. (100%)

 

Schedule 7 to the Subscription Agreement

 

15


Inversiones Vilazul S.A.S.    Dominican Republic    16,991,304 ordinary shares    Perfect Timing (99.99%) and Playa Resorts Holding B.V. (0.01%)
Paloma Capital N.V.    Curacao    29,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Perfect Timing N.V.    Curacao    29,000 ordinary shares    Paloma Capital N.V. (100%)
Perfect Tours N.V.    Curacao    1 ordinary share    Playa Resorts Holding B.V. (100%)
Playa Cabos B.V.    Netherlands    18,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Playa Cabos Baja, S. de R.L. de C.V.    Mexico    2 equity participations    Playa Cabos B.V. (99.97%) and Playa Resorts Holding B.V. (0.03%)
Playa Cana B.V.    Netherlands    18,000 ordinary shares    Playa Punta Cana Holding B.V. (100%)
Playa H&R Holdings B.V.    Netherlands    18,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Playa Man Op LLC    Delaware    1 Membership Interest    Playa Resorts Holding B.V. (100%)
Playa Management, LLC    Delaware    1 Membership Interest    Playa Management USA, LLC (100%)
Playa Management USA, LLC    Delaware    1 Membership Interest    Playa H&R Holding B.V. (100%)
Playa Punta Cana Holding B.V.    Netherlands    18,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Playa Resorts Holding B.V.    Netherlands    660,938 ordinary shares    Playa Hotels & Resorts B.V. (100%)
Playa Riviera Maya B.V.    Netherlands    18,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Playa Rmaya One, S. de R.L. de C.V.    Mexico    2 equity participations    Playa Riviera Maya B.V. (99.97%) and Playa Resorts Holding B.V. (0.03%)
Playa Romana B.V.    Netherlands    18,000 ordinary shares    Playa Resorts Holding B.V. (100%)
Playa Romana Mar B.V.    Netherlands    18,000 ordinary shares    Playa Romana B.V. (100%)
Playa Zana Op LLC    Delaware    1 Membership Interest    Playa Man Op LLC (100%)
Sardio Investments Limited    Bahamas    50,000 ordinary shares    AMR Holdings SPE,LLC (100%)
Servicios Hoteleros de Capri, S. de R.L. de C.V.    Mexico    2 equity participations    Hotel Capri Caribe, S. de R.L. de C.V. (99.97%) and Century Properties S.a.r.l. (0.03%)
Servicios Hoteleros de Punta Cancun, S. de R.L. de C.V.    Mexico    2 equity participations    Cameron del Caribe, S. de R.L. de C.V. (99.97%) and Sardio Investments Limited (0.03%)

 

Schedule 7 to the Subscription Agreement

 

3


Servicios Hoteleros Grand Cabos Baja, S. de R.L. de C.V.   Mexico   2 equity participations   Playa Cabos Baja, S. de R.L. de C.V. (99.99%) and Playa Cabos B.V. (0.01%)
Servicios Hoteleros Pvall, S. de R.L. de C.V.   Mexico   2 equity participations   Cameron del Pacífico, S. de R.L. de C.V. (99.97%) and Canteloup Holdings Ltd. (0.03%)
Servicios Hoteleros Rmaya One, S. de R.L. de C.V.   Mexico   2 equity participations   Playa Rmaya One, S. de R.L. de C.V. (99.97%) and Playa Riviera Maya B.V. (0.03%)
Hotel Gran Porto Real B.V.   Netherlands   10,000 ordinary shares*   Playa Resorts Holding B.V. (100%)
Hotel Gran Caribe Real B.V.   Netherlands   10,000 ordinary shares*   Playa Resorts Holding B.V. (100%)
Hotel Royal Cancun B.V.   Netherlands   10,000 ordinary shares*   Playa Resorts Holding B.V. (100%)
Hotel Royal Playa del Carmen B.V.   Netherlands   10,000 ordinary shares*   Playa Resorts Holding B.V. (100%)
Rose Hall Jamaica Resort B.V.   Netherlands   10,000 ordinary shares*   Playa Resorts Holding B.V. (100%)
Playa Hall Jamaican Resort Limited   Jamaica   100 ordinary shares*   Rose Hall Jamaica Resort B.V. (100%)

 

* The shares have been subscribed but not yet paid.

Part 5(h) No Litigation.

 

    On June 24, 2010 Anito Jiménez Hidalgo, Gil Jiménez Hidalgo, Mercedes Jiménez Hidalgo, Modesto Jirnénez Hidalgo and Sucre Jiménez Hidalgo, acting as successors of Dolores Hidalgo, successor of Mr. Juan Hidalgo, filed a claim against the successors of Mr. Oscar Valdez and the Hotels Dreams Punta Cana Uvero Alto and Uvero Alto Polonia, claiming the nullity of all the purchase and sale agreements, delimitation process and other legal acts executed and performed over the Parcel No. 214 of the Cadastral District No. 47/2 Municipality of Higuey, La Altagracia Province, currently identified under the cadastral subdivisions from Parcel No. 214- Sub-1 to Parcel 214-Sub-24. This litigation is ongoing.Claims and counterclaims between Bamblue S.R.L. (as plaintiff and defendant) and Playa Cana B.V., Inversiones Vilazul S.A. and Playa Romana Mar B.V. (as plaintiffs and defendants) in connection with the lease to Bamblue S.R.L. of certain premises at the Dreams Punta Cana, Dreams Palm Beach and Dreams La Romana Hotels.

 

    See the second litigation disclosure under Part 5(q) entitled “Inversiones Vilazul S.A., Playa Cana B.V. and Playa Romana Mar B.V”.

Part 5(n) Internal Controls.

The Company has certain deficiencies in its internal controls as identified in the letter from Deloitte and Touche to the Company dated May 22, 2013, a copy of which has been provided to the Subscriber.

 

Schedule 7 to the Subscription Agreement

 

4


Part 5(o) No Undisclosed Liabilities.

All liabilities incurred or to be incurred as a result of the performance by the Company and the Company Subsidiaries as a result of the consummation of the Transactions.

Part 5(q) Taxes.

 

    Camerón del Pacífico, S. de R.L. de C.V. (Mexico) (Dreams Puerto Vallarta). The Mexican tax authorities have submitted an information request related to 2009 concerning certain cash payments that were received from IC Sales LLC (Nevis) in error and subsequently refunded to other entities. We have provided the authorities with additional documentation that the payments were received in error.

 

    Camerón del Caribe, S. de R.L. de C.V. (Mexico) (Dreams Puerto Cancun). The Mexican tax authorities have submitted an information request related to 2009 concerning certain cash payments that were received from IC Sales LLC (Nevis) in error and subsequently refunded to other entities. We have provided the authorities with additional documentation that the payment were received in error.

 

    Perfect Tours NV (Curacao). A tax contingency has been recognized for tax returns that were filed from 2008 to 2011 which erroneously reported no taxable activities. No assessment has been received from the applicable tax authorities.

 

    Inversiones Vilazul S.A., Playa Cana B.V. and Playa Romana Mar B.V. Settlement agreements were reached with the Dominican Republic tax authorities that established a minimum taxable room rate per guest for the periods 2005 through 2011, which enables the government to standardize taxable revenue reporting. This agreement resulted in a US$7.0M settlement, of which US$4.2M is owed by the previous owners of Vilazul S.A., for the covered periods to be paid in installments through the end of 2013. A preliminary discussion with the Dominican Republic tax authorities was held in early 2013 to establish a minimum taxable room rate per guest for the period of time beginning on January 1, 2012 and ending on December 31, 2015.

Part 5(r) Title to Assets.

5(r)(i) 

 

    Certain properties and assets of the Company and the Company Subsidiaries are subject to Liens in connection with the Syndicated Loan Agreement and Related Pledges set forth on Appendix A hereto.

 

    Properties and assets of the Company and the Company Subsidiaries will be subject to Liens in connection with Newco Credit Facility and the Newco Notes.

 

Schedule 7 to the Subscription Agreement

 

5


    Cameron del Pacifico, S de R.L. de C.V. is engaged in a Civil Vindication Proceeding that began on October 2006, initiated by BANOBRAS (as trustee of the “Puerto Vallarta Trust”), in an effort to vindicate a portion of land identified as fraction one, located at the north of the hotel “Dreams Puerto Vallarta,” with a surface of 7,433.69 square meters. The surface that is being challenged is not part of the Hotel Dreams Puerto Vallarta premises based on a survey carried out by a surveyor engaged by Cameron del Pacifico, S de R.L. de C.V. This litigation is ongoing.

 

    On June 24, 2010 Anito Jiménez Hidalgo, Gil Jiménez Hidalgo, Mercedes Jiménez Hidalgo, Modesto Jirnénez Hidalgo and Sucre Jiménez Hidalgo, acting as successors of Dolores Hidalgo, successor of Mr. Juan Hidalgo, filed a claim against the successors of Mr. Oscar Valdez and the Hotels Dreams Punta Cana Uvero Alto and Uvero Alto Polonia, claiming the nullity of all the purchase and sale agreements, delimitation process and other legal acts executed and performed over the Parcel No. 214 of the Cadastral District No. 47/2 Municipality of Higuey, La Altagracia Province, currently identified under the cadastral subdivisions from Parcel No. 214- Sub-1 to Parcel 214-Sub-24. This litigation is ongoing. Claims and counterclaims between Bamblue S.R.L. (as plaintiff and defendant) and Playa Cana B.V., Inversiones Vilazul S.A. and Playa Romana Mar B.V. (as plaintiffs and defendants) in connection with the lease to Bamblue S.R.L. of certain premises at the Dreams Punta Cana, Dreams Palm Beach and Dreams La Romana Hotels.

5(r)(ii) 

 

Hotel

  

Legal Entity

  

Country

  

Destination

  

Address

   Rooms     

Lot Shape

   Built (sqf)      Land (sqf)  
Barceló Los Cabos    Playa Cabos Baja, S de RL de CV    Mexico    Cabo San Lucas    Paseo del Malecón l-5 D. Fonatur Zona Hotelera. San José del Cabo.      619       Irregularly Shaped      724,911         501,695   
Dreams Puerto Aventuras    Playa R Maya One S de RL de CV    Mexico    Cancun - Riviera Maya    Ctra Federal Chetumal- Puerto Juarez Km. 266.3 (Quintana Roo). Riviera Maya 77710      305       Irregularly Shaped      356,708         217,800   
Dreams Cancun    Cameron del Caribe, S de RL de CV    Mexico    Cancun - Riviera Maya    Punta Cancun Z. H., KM. 8.5, 77500      378       Irregularly Shaped      572,464         453,752   
Secrets Capri    Hotel Capri Caribe, SA de CV    Mexico    Cancun - Riviera Maya    Carr. Chetumal- Pto. Juarez Km 299 Punta Bete Quintana Roo      291       Rectangular      454,112         3,093,706   
Dreams Puerto Vallarta    Cameron del Pacifico, S de RL de CV    Mexico    Puerto Vallarta    Carr. A Barra De Navidad Km.3.5 Zona Hotelera Sur 48390 Puerto Vallarta      337       Irregularly Shaped      565,661         295,472   
Dreams La Romana    Playa Romana Mar BV    Dominica Republic    La Romana    Playa Bayahibe | P.O. Box 80, Bayahibe      751       Irregularly Shaped      807,300         2,495,988   
Dreams Palm Beach    Playa Cana BV    Dominica Republic    Punta Cana    Cabeza de Toro - Provincia La Altagracia, Punta Cana      500       Irregularly Shaped      753,480         1,498,464   
Dreams Punta Cana    Inversiones Vilazul S.A.    Dominica Republic    Punta Cana    Playas Uvero Alto - Provincia La Altagracia, Punta Cana      620       Irregularly Shaped      861,120         2,045,142   

 

Schedule 7 to the Subscription Agreement

 

6


Part 5(s) Contracts.

Section 5(s)(iv)

 

    AMR Management Agreements (as defined above)

 

    Barcelo Management Agreement (as defined above)

Section 5(s)(v)

 

    Contracts with substantially all hotel employees in Mexico and the Dominican Republic contain severance terms as provided by law or collective bargaining agreements (which have been previously provided by the Subscriber). In addition, members of the executive committee of each hotel managed by AMR have the right to an annual bonus based on the performance of the hotel on terms separately provided to the Subscriber via email dated 7-12-2013.

 

    The Employment Agreement with Bruce Wardinski, described in Part 5(u) below contains provisions relating to the award of annual discretionary bonuses, as approved by the board.

Section 5(s)(vii)

 

    Syndicated Loan Agreement and Related Pledges (as defined above)

 

    AMR Management Agreements

 

    Barcelo Management Agreement

Section 5(s)(viii)

See the disclosures pursuant to Part 5(u).

Part 5(t) Labor Matters.

 

    All personnel of each hotel owned by the Company Subsidiaries in Mexico are employed by a wholly-owned services company, distinct from the property-owning company. The Mexican Labor Law reform passed in 2013 may require the Company and the Company Subsidiaries to adjust the structure used for the employment of personnel by such hotels, and any future hotels that are acquired, in Mexico.

Part 5(u) Related Party Transactions.

Related Party Transactions to remain in effect following Closing

 

    Employment Agreement by and between Playa Management USA and Bruce Wardinski, dated December 1, 2010

 

    Sublease by and between Barcelo Crestline Corporation and Playa Management USA, LLC, dated February 15, 2012 for the sublease of office space at 3950 University Drive, Suite 301, Fairfax, Virginia (the “Fairfax Sublease”).

 

    Barcelo Crestline Corporation leases the premises covered by the Fairfax Sublease from 3950 Owner, LLC, a company owned by Bruce Wardinski.

 

    The Real Sellers (and/or their affiliates) under the Real Acquisition Agreement will participate as lenders pursuant to the Newco Credit Facility in the principal amount of $50 million.

 

Schedule 7 to the Subscription Agreement

 

7


    The Company and the Company Subsidiaries will enter into services and other agreements with the Real Sellers forms of which are attached as exhibits to the Real Acquisition Agreement.

Related Party Transactions to be terminated (other than as identified below)

 

    Amended and Restated Investors Agreement for Playa Hotels & Resorts S.L., dated August 4, 2010 to be terminated at or prior to Closing.

 

    Playa Hotels & Resorts S.L. has entered into convertible loan agreements with certain of its shareholders the proceeds of which are used in connection with the operation of the Company Subsidiaries. The outstanding amounts due under such loan agreements will be converted into shares of Playa Hotels & Resorts S.L. or paid off in full prior to the Closing.

 

    Barcelo Management Agreement will be terminated pursuant to the terms of the applicable Termination Agreement.

 

    Asset Management Agreements, each by and between Playa Management USA LLC and, respectively, Playa Hotels & Resorts S.L. and various of its subsidiaries to be terminated at or prior to Closing.

 

    As of June 30, 2013, the Company and the Company Subsidiaries, on the one hand, and Company, the Company Subsidiaries and the other subsidiaries of Playa Spain, on the other hand had the following intercompany loan arrangements:*

 

          Start    Maturity           Interest

Lender

  

Borrower

   Date    Date    Principal      Rate

Playa Resorts Holding BV

  

Playa Portfolio Holding BV

   8/27/2010    8/26/2014    $ 500,000       3M LIBOR +
2.5%

Grubarges Inversiones Hoteleras Mexicanas S de RL de CV

   Playa Resorts Holding B.V.    12/31/2012    12/30/2013    $ 2,640,000       5.0%

Playa Cabos Baja S de RL de CV*

  

Playa Rmaya One S de RL de CV

   12/31/2012    12/30/2013    $ 1,080,000       5.0%

Playa Cabos Baja S de RL de CV*

  

Playa Romana Mar B.V.

   12/31/2012    12/30/2013    $ 1,700,000       5.0%

Playa Huatulco S de RL de CV

  

Playa Resorts Holding B.V.

   12/31/2012    12/30/2013    $ 2,240,000       5.0%

Playa Kukulcan S de RL de CV

  

Playa Resorts Holding B.V.

   12/31/2012    12/30/2013    $ 2,680,000       5.0%

Playa Resorts Manzanillo S de RL de CV

   Playa Resorts Holding B.V.    12/31/2012    12/30/2013    $ 1,280,000       5.0%

Playa Tucancun S de RL de CV

  

Playa Romana Mar B.V.

   12/31/2012    12/30/2013    $ 600,000       5.0%

Playa Cabos Baja S de RL de CV*

  

Playa Rmaya One S de RL de CV

   1/10/2013    1/9/2014    $ 700,000       5.0%

Playa Huatulco S de RL de CV

  

Cameron del Caribe S de RL de CV

   1/10/2013    1/9/2014    $ 125,000       5.0%

 

Schedule 7 to the Subscription Agreement

 

8


Playa Huatulco S de RL de CV

   Hotel Capri Caribe S de RL de CV    1/10/2013    1/9/2014    $ 50,000             5.0%      

Playa Resorts Holding BV

   Playa Portfolio Holding BV    1/15/2013    1/14/2014    $ 389,765       4.5%

Playa Resorts Holding BV

   Playa Portfolio Holding BV    2/14/2013    2/13/2014    $ 65,168       4.5%

Playa Resorts Holding BV

   Playa Portfolio Holding BV    4/4/2013    4/3/2014    $ 65,168       4.5%

Hotel Capri Caribe S de RL de CV*

   Playa Resort Holding BV    5/2/2013    5/1/2014    $ 700,000       5.0%

Playa Cabos Baja S de RL de CV*

   Playa Resorts Holding BV    5/2/2013    5/2/2014    $ 1,000,000       5.0%

Playa Cabos Baja S de RL de CV*

   Playa Resorts Holding BV    5/30/2013    5/29/2014    $ 750,000       5.0%

Playa Resorts Holding BV

   Playa Portfolio Holding BV    6/6/2013    6/5/2014    $ 64,534       4.5%

Playa Brisa Punta Cana BV

   Playa Resort Holding BV    6/25/2013    6/24/2013    $ 2,500,000       4.5%

Playa Ocean Bav BV

   Playa Resort Holding BV    6/25/2013    6/24/2013    $ 2,500,000       4.5%

Playa Cabos Baja S de RL de CV

   Grubarges Inversiones Hoteleras Mexicanas S de RL de CV    6/26/2013    6/25/2014    $ 179,000       5.0%

Playa Mismaloya S de RL de CV

   Playa Resorts Holding BV Grubarges Inversiones    6/26/2013    6/25/2014    $ 59,000       5.0%

Playa Rmaya One S de RL de CV

   Hoteleras Mexicanas S de RL de CV    6/26/2013    6/25/2014    $ 504,500       5.0%

Playa Rmaya One S de RL de CV

   Playa Mismaloya S de RL de CV    6/26/2013    6/25/2014    $ 710,000       5.0%

Playa Rmaya One S de RL de CV*

   Playa Resorts Holding BV    6/26/2013    6/25/2014    $ 93,093       5.0%

Playa Rmaya One S de RL de CV

   Playa Mismaloya S de RL de CV    6/27/2013    6/26/2014    $ 59,000       5.0%

Playa Resorts Holding BV

   Servicios Hoteleros de Kukulkan S de RL de CV    6/28/2013    6/27/2014    $ 95,198       5.0%

 

* List loans that will remain in place post-closing as they are among the Company Subsidiaries. All other loans will be paid off in cash or via capital contribution and settled upon Closing. Payoff of these loans will not impact the representations in Section 5(f) of the Subscription Agreement.

 

Schedule 7 to the Subscription Agreement

 

9


Appendix A

 

 

US$ 535,000,000 SYNDICATED FACILITY DATED 26 JUNE 2007

AS AMENDED AND RESTATED ON 30 JULY 2010

COLLATERAL AGREEMENTS WITHIN PLAYA NETHERLANDSPERIMETER

AS OF 27 JUNE 2013

 

 

Definitions

 

AMR Holdings    AMR Holdings SPE, LLC
AMR Resort    AMR Resort Holdings, LLC
AMR SPE    AMR SPE, LLC
AMR SPE II    AMR SPE II, LLC
Cameron del Caribe    Cameron del Caribe, S. de R.L. de C.V.
Cameron del Pacifico    Cameron del Pacifico, S. de R.L. de C.V.
Canteloup    Canteloup Holdings Ltd. (Bahamas)
Capri Caribe    Hotel Capri Caribe, S. de R.L. de C.V.
Century    Century Properties S.à.r.l. (Luxembourg)
IC Sales    IC Sales LLC (Nevis)
Inversiones Vilazul    Inversiones Vilazul, S.A.S. (Dominican Republic)
Perfect Timing    Perfect Timing N.V. (Curaçao)
Perfect Tours    Perfect Tours N.V. (Curaçao)
Playa Cana    Playa Cana B.V.
Playa Cabos    Playa Cabos B.V.
Playa Cabos Baja    Playa Cabos Baja, S. de R.L. de C.V.
Playa España    Playa Hotels & Resorts, S.L.
Playa Man    Playa Man Op, LLC
Playa Management    Playa Management, LLC
Playa Management USA    Playa Management USA, LLC
Playa Portfolio    Playa Portfolio Holding B.V.
Playa Resorts    Playa Resorts Holding, B.V.
Playa Riviera Maya    Playa Riviera Maya B.V.
Playa Rmaya    Playa Rmaya One, S. de R.L. de C.V.
Playa Romana    Playa Romana B.V.
Playa Romana Mar    Playa Romana Mar B.V.
Playa Zana    Playa Zana Op, LLC (Delaware)
Sardio    Sardio Investments Limited (Bahamas)

 

 

Schedule 7 to the Subscription Agreement

 

10


A    THREE PACK HOTELS   
A.1    MORTGAGES    JURISDICTION
A.1.1    Hipoteca (Mortgage) over the Secrets Capri Hotel granted by Capri Caribe dated August 4, 2010    Mexico
A.1.2    Hipoteca (Mortgage) over the Dreams Cancún Hotel granted by Cameron del Caribe dated August 4, 2010    Mexico
A.1.3    Hipoteca (Mortgage) over the Dreams Puerto Vallarta Hotel granted by Cameron del Pacifico dated August 4, 2010    Mexico
A.2    PLEDGES OVER SHARES    JURISDICTION
A.2.1    Contrato de Prenda Sobre Partes Sociales de Cameron del Caribe (Share Pledge Agreement – Cameron del Caribe) among Canteloup and Sardio, as pledgors, and Spanish Syndicated Credit Facility Lenders, as pledgees, with the acknowledgment of Cameron del Caribe, dated August 4, 2010    Mexico
A.2.2    Contrato de Prenda Sobre Partes Sociales de Cameron del Pacifico (Share Pledge Agreement – Cameron del Pacifico) among Canteloup and Sardio, as pledgors, and Spanish Syndicated Credit Facility Lenders, as pledgees, with the acknowledgment of Cameron del Pacifico, dated August 4, 2010    Mexico
A.2.3    Contrato de Prenda Sobre Partes Sociales de Capri Caribe (Share Pledge Agreement – Capri Caribe) among Century and Sardio, as pledgors, and Spanish Syndicated Credit Facility Lenders, as pledgees, with the acknowledgment of Capri Caribe, dated August 4, 2010    Mexico
A.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
A.3.1    Contrato de Prenda Sobre Derechos de Crédito Derivados de Contrato (Agreement of Pledge of Rights under Management Agreement and Room Allotment Agreement) among Cameron del Pacifico, as pledgor, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated August 4, 2010    Mexico
A.3.2    Contrato de Prenda Sobre Derechos de Crédito Derivados de Contrato (Agreement of Pledge of Rights under Management Agreement and Room Allotment Agreement) among Cameron del Caribe, as pledgor, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated August 4, 2010    Mexico
A.3.3    Contrato de Prenda Sobre Derechos de Crédito Derivados de Contrato (Agreement of Pledge of Rights under Management Agreement and Room Allotment Agreement) among Capri Caribe, as pledgor, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated August 4, 2010    Mexico
A.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
A.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Cameron del Caribe (Pledge of rights under insurance policy of Cameron del Caribe), among Cameron del Caribe and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Spain
A.4.2    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Cameron del Pacifico (Pledge of rights under insurance policy of Cameron del Pacifico), among Cameron del Pacifico and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Spain
A.4.3    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Capri Caribe (Pledge of rights under insurance policy of Capri Caribe), among Capri and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Spain

 

Schedule 7 to the Subscription Agreement

 

11


A.5    COLLATERAL ASSIGNMENT AGREEMENTS    JURISDICTION
A.5.1    Collateral and Security Agreement Share Purchase Documents, by Playa Zana in favor of BBVA    Delaware
A.5.2    Collateral and Security Agreement Services Agreement Documents, by Capri Caribe, dated August 4, 2010    New York
A.5.3    Collateral and Security Agreement Services Agreement Documents, by Cameron del Caribe, dated August 4, 2010    New York
A.5.4    Collateral and Security Agreement Services Agreement Documents, by Cameron del Pacifico, dated August 4, 2010    New York
A.6    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
A.6.1    Deposit Account Pledge Agreement between BBVA and Capri Caribe, dated August 4, 2010    Florida
A.6.2    Deposit Account Pledge Agreement between BBVA and Cameron del Caribe, dated August 4, 2010    Florida
A.6.3    Deposit Account Pledge Agreement between BBVA and Cameron del Pacifico, dated August 4, 2010    Florida
A.6.4    Deposit Account Control Agreement among BBVA, Capri Caribe and Bancaja Miami, dated August 4, 2010    Florida
A.6.5    Deposit Account Control Agreement among BBVA, Cameron de Caribe and Bancaja Miami, dated August 4, 2010    Florida
A.6.6    Deposit Account Control Agreement among BBVA, Cameron del Pacifico and Bancaja Miami, dated August 4, 2010    Florida
B    PLAYA ROMANA - SUNSCAPE CASA DEL MAR HOTEL   
B.1    MORTGAGES    JURISDICTION
B.1.1    Hipoteca (Mortgage) over the Sunscape Casa del Mar Hotel granted by Playa Romana dated August 27, 2007    Dominican Republic
B.2    PLEDGES OVER SHARES    JURISDICTION
B.2.1    Pledge over the shares in Playa Romana granted by Playa Romana Mar dated August 27, 2007 [Note: this right of pledge has not been entered into the shareholder’s register]    The Netherlands
B.2.1    Pledge over the shares in Playa Romana Mar dated August 27, 2007    The Netherlands
B.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
B.3.1    Prenda de Derechos de Crédito Derivados de Contratos de Playa Romana (Pledge of credit rights under agreements of Playa Romana), among Playa Romana and Spanish Syndicated Credit Facility Lenders, dated August 21, 2007    Spain
B.3.2    Pledge over the credit rights arising from the sale and purchase agreement of the Sunscape Casa del Mar Hotel granted by Playa Romana dated August 27, 2007    Dominican Republic

 

Schedule 7 to the Subscription Agreement

 

12


B.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
B.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguro de Playa Romana (Pledge of credit rights under insurance policies of Playa Romana), among Playa Romana and Spanish Syndicated Credit Facility Lenders, dated August 21, 2007    Spain
B.5    COLLATERAL ASSIGNMENT AGREEMENTS    JURISDICTION
B.5.1    Collateral and Security Agreement Management Agreement Documents, by Playa Romana Mar in favor of BBVA, dated August 4, 2010    New York
B.6    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
B.6.1    Deposit Account Pledge Agreement granted by Playa Romana dated May 28, 2008    Florida
B.6.2    Deposit Account Control Agreement granted by Playa Romana dated May 28, 2008    Florida
C    INVERSIONES VILAZUL - DREAMS PUNTA CANA HOTEL   
C.1    MORTGAGES    JURISDICTION
C.1.1    Contrato de Garantía Hipotecaria en Primer Rango (Mortgage of Dreams Punta Cana Hotel) among Inversiones Vilazul and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Dominican Republic
C.2    PLEDGES OVER SHARES    JURISDICTION
C.2.1    Contrato de Prenda Sobre Acciones de Inversiones Vilazul (Pledge of Shares of Inversiones Vilazul) among Inversiones Vilazul, Perfect Timing, Playa Portfolio and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Dominican Republic
C.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
C.3.1    Contrato de Garantía Sobre Derechos de Crédito (Pledge of Rights under Room Allotment Agreement) between Inversiones Vilazul, as pledgor, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated August 4, 2010    Dominican Republic
C.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
C.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Inversiones Vilazul (Pledge of rights under insurance policy of Inversiones Vilazul) among Inversiones Vilazul and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Spain
C.5    COLLATERAL ASSIGNMENT AGREEMENTS    JURISDICTION
C.5.1    Collateral and Security Agreement Management Agreement Documents, by Perfect Tours and Inversiones Vilazul in favor of BBVA (re. Dreams Punta Cana Hotel Management Agreement), dated August 4, 2010    New York
C.6    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
C.6.1    Deposit Account Pledge Agreement between BBVA and Inversiones Vilazul, dated August 4, 2010    Florida
C.6.2    Deposit Account Control Agreement among BBVA, Inversiones Vilazul and Bancaja Miami, dated August 4, 2010    Florida

 

Schedule 7 to the Subscription Agreement

 

13


D    PLAYA CANA - DREAMS PALM BEACH HOTEL   
D.1    MORTGAGES    JURISDICTION
D.1.1    Contrato de Garantía Hipotecaria en Primer Rango (Mortgage of Dreams Palm Beach Hotel) among Playa Cana and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Dominican Republic
D.2    PLEDGES OVER SHARES    JURISDICTION
D.2.1    Notarial Deed of Pledge of BV Shares of Playa Cana, dated August 4, 2010    The Netherlands
D.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
D.3.1    Contrato de Garantía Sobre Derechos de Crédito (Pledge of rights under Hotel Purchase Agreement and Room Allotment Agreement) among Playa Cana and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Dominican Republic
D.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
D.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Playa Cana (Pledge of rights under insurance policy) among Playa Cana and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010    Spain
D.5    COLLATERAL ASSIGNMENT AGREEMENTS    JURISDICTION
D.5.1    Collateral and Security Agreement Management Agreement Documents between Playa Cana and BBVA, dated August 4, 2010    Delaware
D.6    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
D.6.1    Deposit Account Pledge Agreement between BBVA and Playa Cana, dated August 4, 2010    Florida
D.6.2    Deposit Account Control Agreement among BBVA, Playa Cana and Bancaja Miami, dated August 4, 2010    Florida
E    PLAYA CABOS - CABOS BAJA HOTEL   
E.1    MORTGAGES    JURISDICTION
E.1.1    Hipoteca (Mortgage) over the Cabos Baja Hotel granted by Playa Cabos Baja dated October 1, 2007    Mexico
E.2    PLEDGES OVER SHARES    JURISDICTION
E.2.1    Contrato de Prenda Sobre Partes Sociales de Playa Cabos Baja (Share Pledge Agreement – Playa Cabos Baja) among Playa Cabos and Playa Portfolio, as pledgors, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated October 1, 2007    Mexico

 

Schedule 7 to the Subscription Agreement

 

14


E.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
E.3.1    Prenda de Derechos de Crédito Derivados de Contratos de Playa Cabos Baja (Pledge of credit rights under agreements of Playa Cabos Baja), among Playa Cabos Baja and Spanish Syndicated Credit Facility Lenders, dated September 27, 2007    Spain
E.3.2    Prenda de Derechos de Crédito Derivados de Contrato de Compraventa del Hotel Cabos Baja (Pledge of credit rights under sale and purchase agreement of Cabos Baja Hotel), among Playa Cabos Baja and Spanish Syndicated Credit Facility Lenders, dated October 1, 2007    Mexico
E.3.3    Pledge over the credit rights arising from the management agreement of the Cabos Baja Hotel granted by Playa Cabos Baja dated October 1, 2007    Mexico
E.3.4    Prenda de Derechos de Crédito Derivados de Contrato de Construcción del Hotel Cabos Baja (Pledge of credit rights under construction agreement of Cabos Baja Hotel), among Playa Cabos Baja and Spanish Syndicated Credit Facility Lenders, dated March 11, 2009    Mexico
E.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
E.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Playa Cabos Baja (Pledge of rights under insurance policy) among Playa Cabos Baja and Spanish Syndicated Credit Facility Lenders, dated September 27, 2007    Spain
E.5    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
E.5.1    Deposit Account Pledge Agreement granted by Playa Cabos Baja dated May 28, 2008    Florida
E.5.2    Deposit Account Control Agreement granted by Playa Cabos Baja dated May 28, 2008    Florida
E.6    PREFERENTIAL GUARANTEE ENDORSEMENT    JURISDICTION
E.6.1    Preferential guarantee endorsement of the Mexican insurance policy regarding the construction agreement of the Cabos Baja Hotel granted in favor of the BBVA dated March 11, 2009    Mexico
E.6.2    Preferential guarantee endorsement of the Mexican bond certificate regarding the construction agreement of the Cabos Baja Hotel granted in favor of the BBVA dated March 11, 2009    Mexico
F    PLAYA RMAYA – PUERTO AVENTURAS HOTEL   
F.1    MORTGAGES    JURISDICTION
F.1.1    Hipoteca (Mortgage) over the Puerto Aventuras Hotel granted by Playa Rmaya dated December 18, 2007    Mexico
F.2    PLEDGES OVER SHARES    JURISDICTION
F.2.1    Contrato de Prenda Sobre Partes Sociales de Playa Rmaya (Share Pledge Agreement – Playa Rmaya) among Playa Riviera Maya and Playa Portfolio, as pledgors, and Spanish Syndicated Credit Facility Lenders, as pledgees, dated December 18, 2007    Mexico
F.3    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
F.3.1    Prenda de Derechos de Crédito Derivados de Contrato de Compraventa del Hotel Puerto Aventuras (Pledge of credit rights under sale and purchase agreement of Puerto Aventuras Hotel), among Playa Rmaya and Spanish Syndicated Credit Facility Lenders, dated December 18, 2007    Mexico
F.3.2    Pledge over the credit rights arising from the management agreement of Puerto Aventura Hotel granted by Playa Rmaya dated December 18, 2007    Mexico
F.3.3    Pledge over the credit rights arising from agreements granted by Playa Rmaya dated December 18, 2007    Delaware

 

Schedule 7 to the Subscription Agreement

 

15


F.4    PLEDGES OVER CREDIT RIGHTS ARISING FROM INSURANCES POLICIES    JURISDICTION
F.4.1    Prenda de Derechos de Crédito Derivados de Pólizas de Seguros de Playa Rmaya (Pledge of rights under insurance policy) among Playa Rmaya and Spanish Syndicated Credit Facility Lenders, dated December 18, 2007    Spain
F.5    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
F.5.1    Deposit Account Pledge Agreement granted by Playa Rmaya dated May 28, 2008    Florida
F.5.2    Deposit Account Control Agreement granted by Playa Rmaya dated May 28, 2008    Florida
G    PLAYA MANAGEMENT & PLAYA MANAGEMENT USA   
G.1    PLEDGES OF MAIN ACCOUNTS    JURISDICTION
G.1.1    Prenda de Derechos de Crédito Derivados de las Cuentas Bancarías (Pledge of BBVA Palma main account of Playa Management) among Playa Management and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010   
G.1.2    Prenda de Derechos de Crédito Derivados de las Cuentas Bancarías (Pledge of BBVA Palma main account of Playa Management USA) among Playa Management USA and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010   
G.2    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
G.2.1    Deposit Account Pledge Agreement between BBVA and Playa Management, dated August 4, 2010    Florida
G.2.2    Deposit Account Pledge Agreement between BBVA and Playa Management USA, dated August 4, 2010    Florida
G.2.3    Deposit Account Control Agreement among BBVA, Playa Management and Bancaja Miami, dated August 4, 2010    Florida
G.2.4    Deposit Account Control Agreement among BBVA, Playa Management USA and Bancaja Miami, dated August 4, 2010    Florida
H    PERFECT TOURS   
H.1    PLEDGES OF SHARES    JURISDICTION
H.1.1    Deed of Pledge of Shares in Perfect Tours granted by Playa Resorts, dated August 4, 2010 [Note: this right of pledge has not been entered into the shareholder’s register.]    Curaçao
H.2    COLLATERAL ASSIGNMENT AGREEMENT    JURISDICTION
H.2.1    Collateral and Security Agreement Management Agreement Documents, by Perfect Tours and Inversiones Vilazul in favor of BBVA (re. Dreams Palm Beach Marketing Services Agreement), dated August 4, 2010   

 

Schedule 7 to the Subscription Agreement

 

16


H.3    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
H.3.1    Deposit Account Pledge Agreement between BBVA and Perfect Tours, dated August 4, 2010    Florida
H.3.2    Deposit Account Control Agreement among BBVA and Perfect Tours and Bancaja Miami, dated August 4, 2010    Florida
I    PLAYA RESORTS   
I.1    PLEDGES OF SHARES    JURISDICTION
I.1.1    Notarial Deed of Pledge of BV Shares of Playa Resorts, dated August 4, 2010    The Netherlands
I.2    PLEDGES OVER CREDIT RIGHTS ARISING FROM CERTAIN AGREEMENTS    JURISDICTION
I.2.1    Deed of pledge of Bank Account by Playa Resorts, dated August 4, 2010    The
      Netherlands
I.2.2    Prenda de Derechos de Crédito Derivados de las Cuentas Bancarías (Pledge of BBVA Palma main account of Playa Resorts) among Resorts and Spanish Syndicated Credit Facility Lenders, dated August 4, 2010   
J    IC SALES   
J.1    DEED OF SECURITY OVER MEMBERSHIP INTERESTS    JURISDICTION
J.1.1    Deed of Security over Membership Interests in IC Sales between Resorts and BBVA, dated August 4, 2010   
J.2    COLLATERAL ASSIGNMENT AGREEMENT    JURISDICTION
J.2.1    Collateral and Security Agreement Marketing Services Documents, by IC Sales in favor of BBVA, dated August 4, 2010   
J.3    DEPOSIT ACCOUNT AGREEMENTS    JURISDICTION
J.3.1    Deposit Account and Lockbox Pledge Agreement between BBVA and IC Sales, dated August 4, 2010    Florida
J.3.2    Deposit Account Control Agreement among BBVA, IC Sales and Bancaja Miami, dated August 4, 2010    Florida
J.3.3    Deposit Account Control Agreement among BBVA, IC Sales and KeyBank, N.A., dated August 4, 2010    Florida

 

Schedule 7 to the Subscription Agreement

 

17


Schedule 8 – Annual Budget

See attached.

Schedule 8 to the Subscription Agreement


 

PLAYA HOTELS & RESORTS B.V.

 

NewCo Budget 2013

Amount in Thousands (except for stats)

 

     Total
Playa
    Total
Real
    Total
NewCo
 

Key Statistics

      

Occupancy

     75.8     91.4     80.4

Package ADR

   $ 180.66      $ 222.26      $ 194.54   

RevPAR

   $ 136.86      $ 203.24      $ 156.33   

Rooms

     3,801        1,577        5,378   

Occupied Room Nights

     1,050,998        526,346        1,577,344   

Available Room Nights

     1,387,365        575,605        1,962,970   

Number of Guests

     2,124,575        1,071,030        3,195,605   

All-in Rate (per guest)

     89.37        109.23        96.03   

Guests per Room

     2.02        2.03        2.03   

Revenue:

      

Package Revenue

     189,878        116,984        306,861   

Vacation Club

     2,223        849        3,072   

Other

     36,472        10,573        47,045   
  

 

 

   

 

 

   

 

 

 

Total Revenue

   $ 228,574      $ 128,405      $ 356,979   

Total Operating Expenses*

     (151,320     (75,901     (227,221

Gross Operating Profit (GOP)

   $ 77,254      $ 52,505      $ 129,758   

Management Fee—Base

     (6,857     0        (6,857

Management Fee—Incentive

     (6,253     0        (6,253

Property Insurance

     (5,750     (1,989     (7,739

Property Tax

     (694     (768     (1,463

Owner Expenses

     (901     0        (901
  

 

 

   

 

 

   

 

 

 

Property EBITDA

   $ 56,798        $ 106,546   
  

 

 

   

 

 

   

 

 

 

Total Corporate Expenses

     (10,500    
  

 

 

   

 

 

   

 

 

 

Corporate EBITDA

   $ 46,298      $ 49,748      $ 96,046   
  

 

 

   

 

 

   

 

 

 

 

* Real operating expenses include corporate expenses


Schedule 9 – Form of Amended Articles

Schedule 9 to the Subscription Agreement


MDB/AOO/312893-9/667251

In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity.

Inevitably, differences may occur in translation, and if so the Dutch text will by law govern.

AMENDMENT OF THE ARTICLES OF ASSOCIATION

PLAYA HOTELS & RESORTS B.V.

Today, the * day of * two thousand and thirteen, appeared before me, Maria Yvonne Hillegonda Johanna den Boer, civil-law notary in Amsterdam:

*.

The person appearing declared as follows:

 

I. The Articles of Association of Playa Hotels & Resorts B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), with corporate seat in Amsterdam and office address at Prins Bernhardplein 200, 1097 JB Amsterdam, registered with the Trade Register under number 57593590, hereinafter referred to as: the “Company”, were established by a deed of incorporation executed on the twenty-eight day of March two thousand and thirteen before Cornelis Hein Theodoor Koetsier, civil-law notary in Amsterdam.

 

II. By written resolution of the Company’s general meeting of shareholders dated * two thousand and thirteen, it has been resolved. inter alia:

 

  a. to amend and restate in their entirety the Articles of Association of the Company as mentioned below, and

 

  b. to authorize the person appearing to execute the notarial deed amending the Articles of Association of the Company.

The shareholders’ resolution has been attached to this deed.

The person appearing, acting in said capacity, declared hereby to completely amend the Articles of Association of the Company, laying them down as follows:

ARTICLES OF ASSOCIATION:

Definitions:

Article 1:

Arrearage

has the meaning specified in article 18 paragraph 2;

As Converted Basis

has the meaning specified in article 20 paragraph 2;

Attendance Right

the right, in person or by written power of attorney, to attend and speak at the General Meeting;


Audit Committee

has the meaning as referred to in article 14 paragraph 7;

Board

the Company’s board;

Company

the private company with limited liability whose internal organisation is governed by these articles of association;

Compensation Committee

has the meaning as referred to in article 14 paragraph 7;

Conversion Date

has the meaning specified in article 4 paragraph 11;

Conversion Period

has the meaning as referred to in article 4 paragraph 11;

Conversion Price

eight US dollars and forty US cents (USD 8.40), as adjusted from time to time pursuant to article 25;

Directors

the members of the Board;

Dividend Payment Date

has the meaning specified in article 18 paragraph 2;

Dividend Rate

has the meaning specified in article 18 paragraph 2;

Executive Directors

executive directors (uitvoerende bestuurders) of the Company as meant in article 2:239a paragraph 1 Dutch Civil Code, who have been appointed as such;

General Meeting

the corporate body made up of the shareholders or, if applicable, a meeting of shareholders and Persons entitled to attend meetings (or their representatives);

Holders

has the meaning specified in article 18 paragraph 2;

Investment Committee

has the meaning as referred to in article 14 paragraph 7;

Junior Securities

means all equity securities (including the ordinary shares) of the Company that rank junior to the cumulative preferred shares with respect to dividend rights and in the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary;

Liquidation Preference

has the meaning specified in article 23 paragraph 5;

Non-Executive Directors

non-executive directors (niet uitvoerende bestuurders) of the Company as meant in article 2:239a paragraph 1 Dutch Civil Code, who have been appointed as such;

Persons entitled to attend meetings

 

(i) shareholders;

 

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(ii) shareholders who have no voting rights due to a right of pledge; and

 

(iii) pledgees with voting rights;

Regulations

has the meaning specified in article 15 paragraph 5.

Restated Date

August         , 2013;

Written Request

has the meaning specified in article 4 paragraph 11;

Name and seat:

Article 2:

 

1. The Company bears the name of: Playa Hotels & Resorts B.V.

 

2. It has its seat in Amsterdam.

Object:

Article 3:

The objects of the Company are:

 

(i) to directly or indirectly acquire, own, hold, operate, manage, sell, exchange, finance and/or dispose of all-inclusive resorts in Mexico, Central America, the Dominican Republic, other Caribbean countries, and other countries, and any other hospitality-related assets, without a geographic limitation, and any direct or indirect interest therein or any securities of any kind issued by any entity primarily engaged in such activities;

 

(ii) to acquire, hold and to dispose of participations in other companies and enterprises;

 

(iii) to finance subsidiaries of the Company and their enterprises, to borrow from and lend money to subsidiaries of the Company;

 

(iv) to furnish guarantees, provide security, warrant performance or in any other way assume liability, whether jointly and severally or otherwise, for or in respect of obligations of the Company and/or its subsidiaries;

 

(v) to acquire, exploit and dispose of registered property and other property; and

 

(vi) to acquire, exploit and dispose of patents, trade names, trademarks, know-how, royalties and rights of intellectual and/or industrial property, as well as to grant a licence to such rights and to acquire and exploit licences;

as well as all that is related to the above in the widest sense or may be conducive thereto.

Capital and issuance of shares: Article 4:

 

1. The capital of the Company consists of:

 

  (i) one or more cumulative preferred shares; and

 

  (ii) one or more ordinary shares, each with a nominal value of one United States dollar cent (USD 0.01).

Reference in these articles of association to the words “shares” or “shareholders” without further indication shall apply to both cumulative preferred shares and ordinary shares respectively the holders thereof.

 

2. Each amount that has been paid on shares of a certain class above the nominal amount, shall be added to the share premium reserve attached to the shares of the concerning class.

 

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3. The issue of shares shall take place at the times and under the conditions to be determined by the General Meeting.

 

4. In the event of an issue of new shares of any class, each shareholder shall have a pre-emption right to acquire new shares of such class in proportion to its ordinary share shareholdings (measured on an As Converted Basis). There shall be no pre-emption rights in respect of (x) shares issued to employees of the Company or to any direct or indirect wholly-owned subsidiaries of the Company, (y) cumulative preferred shares to be issued in accordance with in article 18 paragraph 2, or (z) the conversion of cumulative preferred shares into ordinary shares as contemplated by article 4.

 

5. Pre-emption rights may at any time be limited or excluded in relation to a particular issue, by a resolution passed by the General Meeting.

 

6. Within two weeks of a resolution for that purpose, the Company shall announce the issue with pre-emption rights and the period in which such rights can be exercised by sending a written notice to all shareholders at the addresses in the shareholders’ register. The pre-emption rights may be exercised for a period of not less than four weeks after the date on which the notice was sent.

 

7. The General Meeting may assign its authority referred to in paragraph 3 and paragraph 5 to another corporate body and may revoke such assignment.

 

8. The provisions of the preceding paragraphs of this article shall apply by analogy where rights are granted to subscribe for shares.

Shareholders shall not, however, have pre-emption rights in respect of shares being issued to a person exercising an existing right to subscribe for shares.

 

9. Issue of a share requires a deed executed for that purpose before a Dutch civil-law notary which deed shall mention those involved as parties.

 

10. The Company may not subscribe for its own shares in case of an issuance of shares in its own capital.

 

11. At the option and election of the holder thereof, each cumulative preferred share, and any unpaid dividends accumulated thereon to the Conversion Date (including any Arrearages and accumulated dividends thereon), whether or not such dividends have been capitalized, may be converted in the manner provided in paragraph 12 during the Conversion Period (as defined below) into ordinary shares. Conversion of cumulative preferred shares may be effected by any holder thereof upon (i) written request by a holder of such cumulative preferred shares to the Board stating the number of cumulative preferred shares (together with accrued but unpaid dividends accumulated on such cumulative preferred shares, including any Arrearages and any accrued but unpaid dividends accumulated on such Arrearages) to be converted and their indication (hereinafter referred to as the “Written Request”) and (ii) execution of a notarial deed of issue of such number of ordinary shares as is to be calculated in accordance with paragraph 12 less one (1) share being the relevant cumulative preferred share converted. A request as referred to in this paragraph may only be made by a holder of cumulative preferred shares at any time from the Restated Date through the later of (x) the two year anniversary of the Restated Date and (y) an initial public offering of any shares in the capital of the Company and listing of such shares on any recognized stock exchange or market (hereinafter referred to as: the “Conversion Period”).

As promptly as practical, the Company shall execute a deed of issuance for the number of ordinary shares to which such holder shall be entitled. Such conversion shall be deemed to have occurred at

 

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the close of business on the date (the “Conversion Date”) of the giving of such notice by the holder to be converted so that as of such time the economic rights of the holder thereof as to the cumulative preferred shares being converted shall cease, except for the right to have the Company issue a deed of issuance for the number of ordinary shares into which such cumulative preferred shares are to be converted, and the holder entitled to receive the ordinary shares issued as a result of such conversion shall be treated for all economic purposes as having become the holder of such ordinary shares at such time.

Each time following a conversion as referred to in this paragraph, the Board shall file a notification thereof with the Trade Register within eight (8) days.

 

12. As of the Conversion Date with respect to the applicable cumulative preferred shares being converted, such shares shall be converted into that number of ordinary shares equal to the quotient of (A) the sum of (i) the product of (x) the nominal amount, together with share premium, attached to such share (excluding any effects if effect has been given to the provisions of article 18 paragraph 10), multiplied by (y) the number of cumulative preferred shares that such cumulative preferred shareholder is electing to convert, and (ii) an amount equal to all unpaid dividends accumulated on all such cumulative preferred shares (including any Arrearages and any dividends accumulated thereon) to the Conversion Date, divided by (B) the Conversion Price in effect on the Conversion Date.

The above conversion means that ordinary shares will be issued to the relevant shareholder and that these issued shares will be paid up on the account of the share premium reserve attached to the cumulative preferred shares and the freely distributable reserves. The above mentioned share premium reserve and freely distributable reserves will be decreased by an amount equal to the amount that the to be converted cumulative preferred shares are entitled to and such amount (less one United States dollar cent (USD 0.01) per issued ordinary share) will be added to the share premium reserve attached to the ordinary shares.

Shares and registered depositary receipts:

Article 5:

 

1. The shares are registered shares and are numbered by class consecutively starting the ordinary shares from 1 and the cumulative preferred shares from P1.

 

2. No share certificates shall be issued by the Company.

 

3. No Attendance Right may be attached to depositary receipts of shares in the capital of the Company.

Payment on shares:

Article 6:

 

1. Upon the issue of shares the aggregate nominal amount must be paid up. A stipulation may be made to the effect that the nominal value or a part thereof need not be paid-up until a certain period of time has lapsed or the Company has made a call to require payment.

 

2. Payment for shares shall be made in cash unless a non-cash contribution has been agreed. Payment in another currency than the currency of the nominal value of the shares may only be made with the Company’s approval and in accordance with the provisions of the law.

 

3. The payment obligation in another currency than the currency of the nominal value of the shares is being fulfilled for with the amount for which the other currency is freely convertible into the currency of the nominal value of the shares. The basis of determination shall be the currency rate of exchange as published in the Wall Street Journal on the date of the payment.

 

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Repurchase and disposal of shares:

Article 7:

 

1. The Company will not be authorized to purchase fully paid shares in its capital at its own expense for valuable consideration, if the net assets less the purchase price is smaller than the reserves which must be maintained under the law or these articles of association or if the Board knows or reasonably should know that the Company after the acquisition will not be able to keep up paying its debts which are due.

 

2. The term ‘shares’ as used in paragraph 1 of this article shall include depositary receipts issued for shares.

 

3. Disposal by the Company of shares in its own capital shall only take place after approval thereto of, and subject to the conditions to be set by, the General Meeting as far as no other corporate body has been authorized for that purpose by the General Meeting. The share transfer restrictions contained in these articles of association shall apply by analogy to the disposal by the Company of its own shares.

Capital reduction:

Article 8:

 

1. The General Meeting may resolve to reduce the issued share capital by cancelling shares or by reducing the nominal amount of the shares through an amendment to the articles of association. The resolution must specify the shares to which the resolution relates and provide for the implementation of the resolution

 

2. A resolution to cancel shares may relate only to shares held by the Company itself or in respect of which it holds the depositary receipts, or to all shares of a certain class of which all shareholders agree, or to the cumulative preferred shares with repayment of the amount paid upon each cumulative preferred share (nominal and share premium together with unpaid dividends accumulated on such cumulative preferred share, including any Arrearages and any unpaid dividends accumulated on such Arrearages in the form of a distribution as referred to in article 18 paragraph 13). In other situations a resolution to cancel shares may be adopted with the consent of all shareholders concerned.

 

3. A reduction of the nominal amount of the shares without repayment and without release of the obligation to pay such nominal amount shall be effected in respect of all shares of the same class on a proportional basis.

 

4. Release from the obligation to pay the nominal amount of the shares shall be allowed only as part of the implementation of a resolution to reduce the nominal amount of the shares. Such release, as well as a repayment of capital which is effected pursuant to a resolution to reduce the nominal amount of shares, must be effected in respect of all shares on a proportional basis.

 

5. The requirement of proportionality as referred to in paragraph 3 and 4 may be waived with the consent of all shareholders concerned.

 

6. The notice convening a meeting at which a resolution as referred to in this article 8 is passed shall state the purpose of the reduction of share capital and the manner of implementation.

 

7. A resolution of the General Meeting to reduce the issued and outstanding share capital does not have effect as long as the Board has not approved said resolution. The Board shall refuse to grant approval if it knows or reasonably should know that the Company after the reducing of the issued and outstanding share capital will not be able to keep up paying its debts which are due.

 

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8. Reducing share capital or release from the obligation to pay the nominal amount of shares as referred to in this article 8, shall only be allowed to the extent its net assets exceed the reserves which must be maintained under the law or these articles of association.

Shareholders’ register:

Article 9:

 

1. The Board shall keep a register at the offices of the Company containing the names and addresses of all shareholders and providing the date on which they acquired the shares, the number and class of shares held by them, the indication of the shares, the date of acknowledgment or notice, as well as the amount paid-up on each share.

If a shareholder has consented to receiving notice for the General Meeting by electronic communication, the register shall also contain the e-mail address of such shareholder.

Each release from liability granted for payments not yet made on the shares shall also be entered in the register.

 

2. The register shall also contain the names and addresses and, if applicable, the e-mail address of those having a right of usufruct or pledge in respect of shares, stating the date on which they acquired said right, the date of acknowledgment or notice as well as - regarding of those having a right of pledge—stating if they are entitled to the right to vote and the Attendance Right.

 

3. Each shareholder, usufructuary and pledgee is obliged to make sure that his address is known to the Company.

 

4. All notices to shareholders, usufructuaries and pledgees shall be capable of being validly represented at the addresses recorded in the register.

 

5. The register must be kept up to date on a regular basis. Each entry and other registration in the register shall be signed by any of the Directors.

 

6. On request the Board will free of charge issue an extract from the register to a shareholder, usufructuary and pledgee with regard to his right to a share.

Usufruct and pledge on shares:

Article 10:

 

1. A right of usufruct or pledge may be established on shares.

 

2. Any rights arising from a share that pertain to the acquisition of additional shares shall also vest in the shareholder, provided that he compensates the usufructuary with the value of such rights to the extent that the latter is entitled thereto under his right of usufruct.

 

3. The provisions of these articles of association regarding the restriction on the transfer of shares and regarding the disposal and transfer of shares shall apply to the disposal and transfer of shares by a pledgee or to the transmission of shares to a pledgee, provided that the pledgee shall exercise all the rights conferred upon the shareholder in respect of disposal and transfer and shall perform the obligations of the latter in respect thereof.

 

4. The shareholder shall have the right to vote on shares on which a right of usufruct or pledge has been established.

 

5. Notwithstanding the previous paragraph, a holder of a right of pledgee shall have the right to vote (with regard to the pledgee whether or not subject to a condition precedent) if this has been provided when the relevant limited right was established, or afterwards between the shareholder and pledgee is being agreed upon in writing, provided both this provision as the transfer of voting rights is approved by the General Meeting.

 

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6. If another person assumes the rights of the pledgee with the right to vote, he shall have the right to vote only if the transfer of the right to vote has been approved by the General Meeting.

 

7. A shareholder without voting rights and pledgees with voting rights shall have the Attendance Right.

 

8. A pledgee without voting rights shall not have the Attendance Right.

Transfer of shares or limited rights on shares:

Article 11:

 

1. A transfer of a share or the vesting or transfer of a limited right thereon requires a deed which deed shall mention those involved as parties. This deed shall have to be executed before a civil-law notary officiated in the Netherlands.
2. A transfer of a share or the vesting or transfer of a limited right thereon in accordance with the provision of the previous paragraph shall also be legally binding on the Company. Except in the event that the Company itself is a party to a legal act, the rights attached to the share may not be exercised until it has acknowledged the legal act or the deed has been served on it or it has acknowledged it by entry in the shareholders’ register, all this with due observance of the provisions of article 2:196a and article 2:196b Dutch Civil Code.

Joint ownership:

Article 12:

When shares are held jointly, the joint holders can only be represented vis-á-vis the Company by a person authorized by them in writing for that purpose. The joint holders can also authorize more than one person. When shares are held jointly, the joint holders can at the request of a joint holder upon the authorisation or at a later stage—unanimously—decide that such number of votes will be cast in accordance the joint holder’s instruction as shall correspond with his share of the joint ownership.

Restriction on the transfer of shares:

Article 13:

 

  1. A transfer of shares may—without any exception (except as provided in this article)—take place only with the prior approval of the General Meeting.

 

  2. The transfer must take place within six months after approval has been given or is deemed to have been given.

 

  3. Approval is deemed to have been given:

 

  a. if no decision has been taken within one month of the making of a request to that effect; or

 

  b. if the resolution refusing approval does not specify the name(s) of one or more persons who is/are willing, against payment in cash, to purchase the shares to which the request for approval relates.

 

  4. If the person who has made the request accepts the potential purchaser(s) referred to in the previous paragraph under b. and the parties fail to agree on the price to be paid for the share(s), this price shall, if the parties so wish, be determined by an expert to be appointed by the mutual consent of the parties or, failing their agreement and at the request of either party, by the chairman of the Chamber of Commerce and Industry in the district in which the Company’s address is located. Unless the parties agree otherwise, this expert shall be an expert as referred to in Article 2:393 Dutch Civil Code. The costs of determining the price shall be for the Company’s account.

 

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5. Potential purchasers shall have the right at any time to withdraw, provided that they do so within fourteen days of being notified of the result of the price determination referred to in the previous paragraph. If, as a result, not all of the shares are purchased:

 

  a. because all potential purchasers have withdrawn; or

 

  b. because the remaining potential purchasers have not, within six weeks of the aforementioned notification, confirmed their willingness to take over the shares which have become available, in accordance with the general meeting’s criteria for allotment,

the person making the request shall be free to transfer all shares to which the request for approval related, provided that the transfer takes place within six months after this has been established.

 

6. The person making the request shall have the right at any time to withdraw, provided he does so within one month of receiving definite details of the identity of the potential purchasers to which he may sell all the shares to which the request for approval related and of the selling price.

 

7. This article 13 does not apply in case of a transfer of shares to the Company.

Management:

Article 14:

 

1. The management of the Company has been entrusted to a Board, consisting of one or more Executive Directors and one or more Non-Executive Directors.

Reference in these articles of association to the word “Directors” without further indication shall apply to both Executive Directors and Non-Executive Directors.

Executive Directors and Non-Executive Directors shall be natural persons.

 

2. The General Meeting shall decide upon the number of Directors.

 

3. Directors are appointed by the General Meeting.

 

4. Directors may at all times be suspended and dismissed by the General Meeting. Furthermore, Executive Directors may at all times be suspended by the Board. The suspension may at all times be cancelled by the General Meeting.

 

5. If, in the event of suspension of a Director, after three months no resolution has been adopted by the General Meeting to dismiss him, the suspension shall terminate.

 

6. A Director shall be given the opportunity to account for his actions in the General Meeting during which his suspension is discussed and have an adviser assist him therein.

 

7. The Board will form and appoint from its midst in accordance with the Regulations (i) an investment committee (hereinafter referred to as the “Investment Committee”), (ii) an audit committee (hereinafter referred to as the “Audit Committee”) and (iii) a compensation committee (hereinafter referred to as the “Compensation Committee”).

 

8. The Compensation Committee shall decide on the remuneration and the further terms and conditions of employment for each of the Directors and procuration holders, in each case as determined by the Regulations.

 

9. In the event of any vacancies, or the absence of a Director, the remaining Director or Directors will be charged with the management of the Company, subject to the Regulations.

In the event all positions in the Board are vacant or the absence of all Directors or the sole Director, the Company shall temporarily be managed by a person to be appointed for that purpose by the General Meeting.

 

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In the event of any vacancies, or the absence of all Executive Directors or the sole Executive Director, the Non-Executive Directors may temporarily dedicate the tasks of the Executive Director(s) to other persons.

In the event of any vacancies, or the absence of all Non-Executive Directors or the sole Non-Executive Director, tasks of the Non-Executive Director shall be performed by a person appointed thereto by the General Meeting. The General Meeting shall take measures to provide for a permanent solution.

Duties and powers:

Article 15:

 

1. If there is more than one Director they will decide by an absolute majority of the votes unless as otherwise provided in the Regulations; each Director may cast one vote; and in the event of an equal division of votes the General Meeting shall decide upon the issue.

 

2. The Board shall hold a meeting whenever a Director considers this necessary. The Board is also authorized to adopt resolutions without holding a meeting, provided all the Directors have been given the opportunity to cast their votes and all have agreed on this way of adopting resolutions. Such resolutions shall be adopted by a majority as referred to in paragraph 1.

 

3. A Director may grant another Director a written power of attorney to represent him at the meeting.

 

4. The contemporaneous linking together by telephone conference or audio-visual communication facilities of all the Directors, wherever they may be, shall be deemed to constitute a meeting of the Board for the duration of the connection, unless a Director objects thereto.

Minutes of the matters addressed at a meeting of the Board, authenticated by the chairman of the Board or, in the event the Board does not have a chairman, by a Non-Executive Director serving as chairman of the meeting, shall be sufficient evidence thereof and of the observance of all necessary formalities.

 

5. The Board shall have authority to draw up regulations (herein referred to as the “Regulations”) to deal with matters that concern the Board internally, as well as the appointment and other internal processes of the Investment Committee, the Audit Committee and the Compensation Committee.

Such regulations shall not be in conflict with what has been provided in these articles of association. Furthermore, the Directors shall have power to allocate their tasks amongst themselves, whether or not in the Regulations, provided that this allocation of tasks is in writing.

With due observance of the provisions of this paragraph the chairmanship of the Board and its meetings shall be allocated to the Non-Executive Directors.

 

6. Directors to whom—in writing and in accordance with these articles of association—a task has been allocated may validly adopt resolutions regarding matters that pertain to their respective tasks, as referred to in article 2:239a paragraph 3 Dutch Civil Code.

 

7. The Board requires the approval of the General Meeting for such resolutions as the General Meeting by its explicitly defined resolution has adopted and made known to the Board.

 

8. The absence of the approval required pursuant to paragraph 7 of this article 15 does not affect the representative authority of the Board or each Director.

 

9. The Directors have the right to attend the General Meeting; in these meetings they will have an advisory vote.

 

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10. The Board shall not be authorized to file a petition for bankruptcy of the Company without the instruction of the General Meeting.

 

11. The relevant Director(s) shall, in the event of a direct or indirect personal conflict of interests between the Company and one or more of its Directors, not participate in the discussions and decision making regarding the relevant matter. If no resolution can be adopted as a result thereof, the resolution shall nevertheless be adopted by the Board.

Representation:

Article 16:

 

1. The Board represents the Company. The Company may also be represented by each independently acting Executive Director.

 

2. The Company may also be represented by one or more proxy holders (procuratiehouders), with due regard for the authority assigned to them for that purpose by the Board. Said proxy must be granted in writing and entered in the Trade Register. The title of such proxy holders (procuratiehouders) shall be determined by the Board.

Financial year, annual accounts and annual report:

Article 17:

 

1. The Company’s financial year runs from the first day of January up to and including the thirty-first day of December of each year.

 

2. Annually as at the last day of each financial year the Board shall prepare the Company’s annual accounts (consisting of the balance sheet and profit and loss account with explanatory notes thereto) within five months of the end of each financial year, unless this period is extended by the General Meeting by no more than six months due to unusual or extraordinary circumstances. The Board shall deposit the accounts at the Company’s offices for inspection by the shareholders and other Persons entitled to attend meetings. The Board shall also, within the above-mentioned period, deliver an annual report.

The annual accounts will be signed by all Directors; if any signature should be lacking, this fact and the reasons therefore will be indicated in the annual accounts.

Signing the annual accounts by all Directors shall not be considered as adoption of the annual accounts as referred to in paragraph 5 first sentence of this article 17.

 

3. The Company shall make sure that the annual accounts, the annual report and the information to be added by virtue of article 2:392 paragraph 1 Dutch Civil Code, are available at its offices from the time the General Meeting, at which they are to be discussed, is convened. The Persons entitled to attend meetings may inspect these documents in that place and obtain free copies thereof.

 

4. The provisions of paragraphs 2 and 3 of this article 17 regarding the annual report and the information to be added by virtue of article 2:392 paragraph 1 Dutch Civil Code do not apply in case article 2:403 Dutch Civil Code applies to the Company or when the exemption pursuant to article 2:396 paragraph 7 Dutch Civil Code applies to the Company as a result of the size of the Company’s enterprise.

 

5. The General Meeting shall adopt the annual accounts. The annual accounts cannot be adopted if the General Meeting has not been able to examine the auditor’s report referred to in paragraph 6 of this article 17, unless under the additional data a lawful ground has been stated for the absence of the auditor’s report.

 

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6. The General Meeting shall have the right—and, if required by law, be under an obligation—to appoint an auditor as referred to in article 2:393 Dutch Civil Code to audit the annual accounts drawn up by the Board, to report to the Board and issue a certificate on the audit.

 

7. Where the General Meeting fails to appoint an auditor as referred to in paragraph 6 of this article 17, the Board shall do so.

 

8. The appointment may be revoked at any time by the General Meeting and by the body that made the appointment.

Payments to shareholders:

Article 18:

 

1. Profit will be taken to mean the credit balance of the adopted profit and loss account.

 

2. Without prejudice to the provisions in paragraph 10 of this article 18, to the full extent of the distributable profits of the Company available therefor, a dividend distribution shall be made to the holders of the cumulative preferred shares, as to each share, at a rate (the “Dividend Rate”) of ten per cent (10%) per annum compounded quarterly until the second anniversary of the issue of the first cumulative preferred share and twelve per cent (12%) per annum compounded quarterly after that date, of the sum of (i) the nominal amount, together with share premium, attached to such share (excluding any effects if effect has been given to the provisions of article 18 paragraph 10), plus (ii) an amount equal to all Arrearages (and any accumulated dividends thereon), if any, that are payable in respect of such share. Dividends shall be paid in four equal quarterly instalments on the fifteenth day of January, the fifteenth day of April, the fifteenth day of July and the fifteenth day of October of each year (each such date, regardless of whether any dividends have been paid or set aside for payment on such date, a “Dividend Payment Date”), to the holders of such shares (the “Holders”) on the tenth (10th) day prior to the relevant Dividend Payment Date. Dividends shall be cumulative from the most recent Dividend Payment Date as to which dividends shall have been paid or, if no dividends have ever been paid, from the Restated Date, and shall accumulate from day to day whether or not earned or declared until paid. Dividends shall accumulate on the basis of a three hundred sixty (360) -day year consisting of twelve thirty (30) -day months (four ninety (90) -day quarters). In the event that there do not exist distributable profits for the payment of dividends on any Dividend Payment Date, any dividends that would otherwise be payable on all issued cumulative preferred shares and any Arrearages (including any dividends accumulated thereon) shall accrue and shall not be paid unless and until the Company has distributable profits available for the payment of such dividends. If with respect to a previous year or previous years (or any portion thereof) distributions on the cumulative preferred shares have been made less than the applicable Dividend Rate, the available distributable profit of any subsequent year, insofar as possible, shall furthermore first be used to make up the deficit in said dividends for such prior periods. Dividends paid on the cumulative preferred shares pursuant to this paragraph shall in their entirety be distributed in the form of cumulative preferred shares in the capital of the Company, whereby the number of cumulative preferred shares to be issued in payment of each such dividend is to be calculated by dividing the relevant amount of the dividend by eight United States dollars and forty cents (USD 8.40). For each Holder, the cumulative preferred shares to be issued as a dividend payment shall be calculated on an aggregate basis, with any fractional shares rounded off downwards. All cumulative preferred shares distributed as dividends shall be deemed issued on the applicable Dividend Payment Date.

 

 

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Dividends on the cumulative preferred shares shall be cumulative, and from and after any Dividend Payment Date on which any dividend that has accumulated through such date on a cumulative preferred share has not been paid in full (the amount of such unpaid dividends, an “Arrearage”), additional dividends shall accumulate on such cumulative preferred share in respect of the amount of such Arrearage at the Dividend Rate. Any and all such additional dividends in respect of any Arrearages shall accumulate from day to day and compound quarterly, whether or not earned or declared until the Arrearage is paid in full, and shall constitute an additional Arrearage from and after any Dividend Payment Date to the extent not paid on such Dividend Payment Date. Reference in any article in these articles of association to dividends that have accumulated with respect to a cumulative preferred share shall include the amount, if any, of any Arrearage together with any dividends accumulated on such Arrearage pursuant to the immediately preceding two sentences. Additional dividends in respect of any Arrearage may be declared and paid at any time, in whole or in part, in accordance with this paragraph 2 of article 18 without reference to any regular Dividend Payment Date, to Holders on such record date as may be fixed by the Board (which record date shall be no less than ten (10) days prior to the corresponding payment date).

Dividends paid on the cumulative preferred shares (including any Arrearages and any dividends accumulated thereon) shall be allocated pro rata on a share-by-share basis among all cumulative preferred shares then outstanding.

Dividends paid in an amount less than the full amount of dividends at the time accumulated and payable on the cumulative preferred shares (and on any Arrearage and any dividends accumulated thereon) shall be applied first to the earliest dividend which has not theretofore been paid.

 

3. The Board may resolve to make such reservation from the balance of the profits after application of paragraph 2, as it deems appropriate.

 

4. Subject to paragraph 14 of this article 18, the balance of the profits after application of paragraph 3 shall be at the free disposal of the General Meeting for distributions exclusively on ordinary shares, reservations or such other purposes within the object of the Company as the General Meeting shall decide.

 

5. Each calendar quarter, starting on the conclusion of the first calendar quarter after the Restated Date, an interim dividend to the debit of profits which have not yet been established shall be declared to the holders of cumulative preferred shares in conformity with paragraph 2 of this article 18. The profits which have not yet been established will be decreased with the relevant amount distributed as interim dividend and such amount (less one United States dollar cent (USD 0.01) per issued cumulative preferred shares) will be added to the share premium reserve attached to the cumulative preferred shares. Furthermore, subject to paragraph 14 of this article 18, the General Meeting may declare and pay out an interim dividend on the ordinary shares to the debit of the remainder of the profits which have not yet been established.

 

6. The provision on distributions as referred to in paragraph 2 and a resolution of the General Meeting to serve a distribution as referred to in paragraphs 4 and 5 do not have effect as long as the Board has not granted its approval. The Board shall refuse its approval solely if it knows or reasonably should know that the Company after the distribution will not be able to keep up paying its debts which are due.

 

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  7. The Company may only make distributions to shareholders from profits qualifying for payment, insofar as the net assets exceeds the reserves that have to be maintained by virtue of Dutch law or these articles of association.

No distribution of profits for the benefit of the Company will be made on shares owned by the Company.

 

  8. For the calculation of the amount of the profit to be distributed on each ordinary share, only the amount of the obligatory payments on the nominal amount of the ordinary shares including share premium shall be taken into account. With the consent of all shareholders each time this provision can be derogated from.

 

  9. Distributions chargeable to a share premium reserve attached to a certain class of shares may only be made to the holders of shares of such class in proportion to the obligatory payments on the nominal amount of the shares of such class, pursuant to a resolution of the General Meeting on the proposal of the meeting of shareholders of such class and with due observance of paragraphs 6 and 7 of this article 18.

 

  10. Only losses that cannot be charged to a reserve – not being the share premium reserve for the cumulative preferred shares – or that may not be covered in any other way shall be charged to the share premium reserve for the cumulative preferred shares.

 

  11. If a loss of the Company is charged to the share premium reserve for the cumulative preferred shares, no distributions can be made in the following years, until the aggregate amount by which such share premium reserve has been reduced has been made up by way of reservation from profits in the following financial years. An amount of the profits shall be reserved equal to the amount by which such share premium reserve was reduced and such amount will be added to such reserve.

 

  12. If the Company purchases shares of a certain class in its own capital, the share premium reserve attached to those shares shall be decreased by an amount equal to the amount of said share premium reserve multiplied by a fraction of which the numerator equals the number of purchased shares and the denominator equals the total number of shares of such class that had been placed immediately before that purchase.

 

  13. In the event of cancellation with repayment of cumulative preferred shares, a dividend distribution in cash will be made on such shares on the date of repayment, which distribution will be calculated in accordance with paragraph 2 of this article 18 and allocated pro rata on a share-by-share basis among all cumulative preferred shares then outstanding, to be calculated for the period from the most recent Dividend Payment Date on which payment in full of the dividend due on such Dividend Payment Date was made until the date of repayment on the cumulative preferred shares being cancelled, without prejudice to the provisions of paragraphs 6 and 7 of this article 18.

 

  14. So long as any cumulative preferred shares are outstanding, the Board shall not declare, and the Company shall not pay or set apart for payment any dividend on any Junior Securities or make any payment on account of the cancellation with repayment, repurchase, redemption or other retirement of, any Junior Securities or any warrants, rights or options exercisable for or convertible into any Junior Securities, or make any distribution in respect of the Junior Securities, either directly or indirectly, and whether in cash, obligations or shares of the Company or other property (other than

 

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distributions or dividends in Junior Securities to the holders of Junior Securities), and shall not permit any subsidiary of the Company to purchase or redeem any Junior Securities or any warrants, rights, calls or options exercisable for or convertible into any Junior Securities unless prior to or concurrently with such declaration, payment, setting apart for payment, repurchase, redemption or other retirement or distribution, as the case may be, all accumulated and unpaid dividends on cumulative preferred shares not paid on the dates provided for in this article 18 (including any Arrearages and accumulated dividends thereon) shall have been paid. Notwithstanding the foregoing, this paragraph 14 of article 18 shall not prohibit the acquisition, repurchase, exchange, conversion, redemption or other retirement for value of cumulative preferred shares by the Company in accordance with these articles of association.

General Meeting:

Article 19:

 

1. During each financial year at least one General Meeting shall be held or at least once a resolution shall be adopted in accordance with paragraph 15 of this article 19, within six months after the end of the financial year,—except in case a delay in drawing up the annual accounts has been approved—which among others shall address:

 

  a. the consideration of the annual accounts and, insofar as is required by law, of the annual report and additional information as mentioned in article 2:392 Dutch Civil Code;

 

  b. the adoption of the annual accounts;

 

  c. deciding upon the discharge of each of the Directors;

 

  d. deciding upon the allocation of profits;

 

  e. the appointment of the person as referred to in Article 14 paragraph 8 of these articles of association; and

 

  f. the execution of any other tasks required by law.

If a delay in drawing up the annual accounts has been approved by the General Meeting, the matters indicated in the previous sentence will either be addressed in a General Meeting to be held no later than one month after the date to which the extension has been granted, or to be included in a resolution to be adopted outside a meeting in accordance with paragraph 15 of this article 19, such resolution to be adopted no later than one month after the date to which the extension has been granted.

 

2. The Board and each shareholder who solely represents at least ten per cent (10%) of the Company’s total issued share capital (on an As Converted Basis) are entitled to convene a General Meeting, with due observance of the provisions of this article 19. The party convening the meeting shall determine the agenda.

 

3. The Board is also obliged to convene a General Meeting, if one Director or one or more shareholders who solely or collectively represent at least one per cent (1%) of the Company’s total issued share capital address a request to that effect to the Board in writing, including by electronic means, specifically stating the items to be discussed in that meeting.

If in that case the Board fails to convene a meeting in such a way that it is held within four weeks from receipt of the said request, each of those making the request will be authorized to convene a meeting, with due observance of the relevant provisions in these articles of association.

For the purpose of this paragraph, Persons entitled to attend meetings are regarded as shareholders.

 

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4. Shareholders and other Persons entitled to attend meetings must be invited to attend the General Meeting no later than the eighth day prior to the meeting, by registered letter, stating the items on the agenda. If a shareholder or other Person entitled to attend meetings has consented thereto, notice for a General Meeting can also be given electronically to the address provided for this purpose to the Company, provided the message is capable of being produced in writing.

 

5. Nevertheless, resolutions may be adopted by the General Meeting if no notice convening a meeting was made in accordance with paragraph 4, or if the item in question was not mentioned in the notice, provided all Persons entitled to attend meetings consent to the decision-making of these items and the Directors prior to the decision-making have been given the opportunity to render advice.

 

6. When one or more holders of shares who alone or jointly represent at least one per cent (1%) of the Company’s issued share capital have requested, in writing, including electronically, the consideration of a matter, this shall be included in the convening notice or announced in the same manner, provided that the Company has received the request no later than the thirtieth day prior to the date of the meeting and that there is no serious conflicting interest of the Company. For the purposes of this paragraph Persons entitled to attend meetings are regarded as shareholders.

 

7. The General Meeting shall be held in the place where the Company has its official seat. They may be held in a different place, provided all Persons entitled to attend meetings consent to the place of the meeting and the Directors prior to the decision-making have been given the opportunity to render advice.

 

8. The General Meeting shall be chaired by the chairman of the Board and, where the Board has not appointed such chairman or where the chairman is not present at the meeting, by the Director present at the meeting who has been in office longest.

Where none of the Directors is present at the meeting, the General Meeting shall appoint its own chairman.

 

9. The chairman shall appoint one of the persons present to minute the meeting and he shall adopt the minutes with such secretary and, in evidence thereof, sign them with the secretary. The minutes must be entered into a minute book. Where an official report of the meeting is drawn up by a civil-law notary, no minutes need to be taken and signing of the report by the notary shall suffice.

 

10. Every shareholder and every other Person entitled to attend meetings shall be authorized to attend the General Meeting and to address the meeting. Each shareholder and other Person entitled to attend meetings having voting rights shall be authorized to exercise his voting rights at the General Meeting.

 

11. Persons entitled to attend meetings may be represented at the General Meeting by written proxy (including by proxy granted electronically).

 

12. Each Person entitled to attend meetings may attend, in person or by written proxy (including a proxy granted electronically), a General Meeting by electronic means of communication, to speak and to exercise his voting rights at such meeting, under the conditions to be established by the Board. The convocation for the General Meeting shall mention the conditions.

 

13. For the purpose of paragraph 12, it shall be required that the Person entitled to attend meetings can be identified by electronic means, can take note of the occurrences at the meeting directly and can exercise his voting rights. Furthermore, it is required that the shareholder can participate in the discussions by electronic means of communication.

 

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14. Votes cast for a General Meeting prior to the meeting by electronic means of communication are considered to be equivalent to votes cast at the meeting. The votes cannot be cast more than thirty days prior to the meeting. The votes cast will remain valid in case of a subsequent transfer of the relevant shares. The Board shall establish the conditions applicable to votes cast prior to a General Meeting. The convocation for the meeting shall mention the conditions.

 

15. A resolution of the General Meeting may also be adopted in another way without holding a meeting, provided all Persons entitled to attend meetings consent in writing or electronically to such other way of decision-making. The votes shall be cast in writing. The requirement that the voting is set out in writing is also fulfilled if the resolution indicating the way in which the shareholders voted is recorded in writing or electronically. The Directors shall be given the opportunity to render advice prior to the decision-making.

 

16. If decision-making takes place in accordance with the previous paragraph all requirements regarding quorum and qualified majority as provided for in the law and these articles of association are applicable simultaneously, provided that outside a meeting at least such a number of votes need to be cast as is required for there to be the quorum required for the resolution concerned.

Shareholder voting:

Article 20:

 

1. Except as otherwise provided by law or these articles of association, all resolutions of the General Meeting shall be adopted by the vote of holders of an absolute majority of the issued share capital at a meeting in which a majority of the issued share capital is represented as calculated during the Conversion Period, in each case, as if the cumulative preferred shares are converted in accordance with article 4 paragraph 12 (together with accrued but unpaid dividends accumulated on such cumulative preferred shares, including any Arrearages and any accrued but unpaid dividends accumulated on such Arrearages) as per the date of the General Meeting. If the said quorum is not represented in such meeting no second meeting may be held as referred to in article 2:230 paragraph 3 of the Dutch Civil Code.

 

2. Each share confers the right to cast one vote, on the understanding that during the Conversion Period each cumulative preferred share confers the right to cast such number of votes equal to the number of ordinary shares into which the cumulative preferred share can be converted in accordance with article 4 paragraph 12 (together with accrued but unpaid dividends accumulated on such cumulative preferred share, including any Arrearages and any accrued but unpaid dividends accumulated on such Arrearages) as per the date of the General Meeting, at a certain moment. Such number of ordinary shares into which the cumulative preferred share can be converted is referred to herein as the cumulative preferred share on an “As Converted Basis”.

At General Meetings the Company shall not be capable of casting votes for shares in its own share capital that are held by itself or by one of its subsidiaries; nor shall it be capable of doing so for shares in its own share capital of which the Company or one of its subsidiaries holds the depositary receipts for shares.

Holders of a right of pledge in respect of shares belonging to the Company or its subsidiaries are not, however, excluded from exercising their right to vote if the right of pledge was created before the relevant share first came to be held by the Company or a subsidiary. The Company or a subsidiary may not cast any vote relating to shares in respect of which it has a right of pledge.

 

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3. When determining whether a particular proportion of the share capital is represented, or alternatively, whether a majority represents a particular proportion of the share capital, the share capital shall be decreased by the amount of shares to which no voting rights are attached.

 

4. Blank and invalid votes shall be considered not to have been cast.

 

5. The determination made by the chairman at the meeting with regard to the results of a vote shall be decisive. The same shall apply to the contents of a resolution passed, where there has been a vote about a proposal that has not been put in writing.

 

   However, where the accuracy of the determination referred to in this paragraph 5 is contested immediately after it has been made, a new vote shall take place if the majority of the General Meeting so requires or, where the original vote did not take place by response to a roll call or in writing, if one person with the right to vote so requires.

 

   The original vote shall become void as a result of the new vote.

 

6. If there is an equal division of votes on a proposal about business matters or persons, then no decision shall be taken. One or more shareholders or other persons entitled to vote representing at least fifty per cent (50%) of the issued share capital (on an As Converted Basis) shall have the right, within ten days after the meeting has been held, at which there is an equal division of votes, to request the Dutch Arbitration Institution (Nederlands Arbitrage Instituut) to appoint an adviser, in order to reach a decision about the proposal in question. In that case the decision taken by the adviser shall carry the same force as a decision taken by the General Meeting.

 

7. The Board shall keep a record of the resolutions adopted. The records shall be available for inspection by the shareholders and the Persons entitled to attend meetings at the Company’s offices. On request a copy or extract of these records shall be issued to each shareholder and Person entitled to attend meetings at no more than cost price.

Meetings of holders of shares of a certain class:

Article 21:

 

1. Meetings of holders of shares of a certain class will be held in all cases in which pursuant to these articles of association a resolution of the meeting of holders of shares of a certain class is required and furthermore as often as the Board deems necessary or as often as one or more shareholders entitled to vote with regard to the shares of the concerning class has requested to the Board in writing, setting out the exact matters to be discussed.

 

2. In the event that the Board fails to convene the meeting after a request as referred to in the end of paragraph 1 in such a manner that it is held within four weeks of receipt of the request, each of the persons who made the request shall have the right to convene the meeting himself in accordance with the relevant provisions of these articles of association.

 

3. Article 19 paragraphs 4, 5, 7, 9 up to and including 16 as well as article 20 shall be mutatis mutandis applicable to the meeting of holders of shares of a certain class.

 

4. The meeting of holders of shares of a certain class shall appoint its chairman itself.

Specific resolutions:

Article 22:

 

1. Resolutions to:

 

  a. issue shares in the Company’s capital or grant a right to acquire shares in the Company’s capital;

 

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  b. amend the articles of association of the Company;

 

  c. a legal merger or demerger of the Company; and

 

  d.