Title of each class
|
|
Name of each exchange on which registered
|
Ordinary shares, par value $0.0001 per share
|
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NASDAQ Capital Market
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Warrants
|
|
NASDAQ Capital Market
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Large accelerated filer ☐
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Accelerated filer☐
|
Non-accelerated filer ☒
|
Emerging growth company ☒
|
U.S. GAAP ☐
|
International Financial Reporting Standards as issued by the International Accounting Standards Board ☒
|
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Other
☐
|
Tenth Amendment to the Private Instrument of Deed Regarding the Second Public Issuance of Common Debentures, Non-Convertible Into Shares, of a Single Series, of the Unsecured Type, with Additional Real Guarantees and Additional Fiduciary Guarantee for Public Placement with Restricted Placement Efforts, of Estre Ambiental S.A. dated December 20, 2017 ( English Translation of Portuguese Language Document).
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Tenth Amendment to the Private Instrument of Deed Regarding the First Public Issuance of Common Debentures, Non-Convertible Into Shares, with Real Guarantee and Additional Fiduciary Guarantee for Public Placement with Restricted Placement Efforts, of Estre Ambiental S.A. dated December 20, 2017 ( English Translation of Portuguese Language Document).
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Estre Ambiental Inc.
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By:
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/s/ Sergio Pedreiro
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Name:
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Sergio Pedreiro
|
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Title:
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Chief Executive Officer
|
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By:
|
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/s/ Fabio D’Avila Carvalho
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Name:
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Fabio D’Avila Carvalho
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Title:
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Chief Financial Officer
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Date: July 2, 2018
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|
I. |
as issuer and offeror of the Debentures:
|
II. |
as fiduciary agent, appointed in the Deed of Issuance, representing the Debenture Holders:
|
III. |
as guarantors, joint debtors and principal payers, jointly and severally with each other and with the Company:
|
IV. |
as consenting intervening parties:
|
(A) |
on July 4
th
, 2011, the Company, Oliveira Trust Distribuidora de Títulos e Valores Mobiliários S.A., and Estre Coleta Holding S.A. (current corporate name of P.N.A.S.P.E. Empreendimentos e Participações S.A.), acting as a consenting intervening party, among others, executed the “Private Instrument of Deed regarding the 1
st
Issuance of Common Debentures, Non-Convertible into Shares, of the Subordinated Type, to be Converted into Real Guarantees’ Type and with Additional Fiduciary Guarantee, for Public Placement with Restricted Placement Efforts, of Estre Ambiental S.A”, as amended on July 25
th
, 2011 (First Amendment), on November 17
th
, 2011 (Second Amendment), on March 5
th
, 2015 (Third Amendment), on March 23th, 2016 (Fourth Amendment), on May 19
th
2016 (Fifth Amendment), July 21
st
, 2016 (Sixth Amendment), October 14
th
, 2016 (Seventh Amendment), March 9
th
, 2017 (Eighth Amendment), May 10
th
, 2016 7 (Ninth Amendment) and on this date (Tenth Amendment) (“
Deed of First Issuance
”), by which two thousand, seven hundred and twenty (2,720) simple debentures, non-convertible into shares, of the additional real Guarantee type and with additional fiduciary guarantee, of a single series, with a Nominal Unitary Value of two hundred and fifty thousand reais (BRL 250,000.00) each, on the Issuance Date, there is, June 27
th
, 2011 (“
First Issuance Debentures
” and “
First Issuance
”, respectively), totaling the amount of six hundred and eighty million reais (BRL 680,000,000.00), which were subject to public placement with restricted placement efforts (“
Restricted Offer regarding the First Issuance
”);
|
(B) |
the Creditor of the Confession subscribed and paid up all the First Issuance Debentures, being, therefore, since the conclusion of the
Restricted Offer regarding the First Issuance
, the sole holder of the First Issuance Debentures, object of the Deed of First Issuance;
|
(C) |
on June 13
th
, 2017, the outstanding balance of the First Issuance Debentures, duly increased by interest remuneration payable pursuant to Clause 4.5.1 of the Deed of First Issuance and calculated in accordance with Clause 5.2 of the Deed of First Issuance, corresponded to the total amount of nine hundred and sixty-six million, forty-five thousand, six hundred and five reais and eighty-three cents (
BRL 966,045,605.83)
(“
Outstanding Balance of the First Issuance Debentures
”);
|
(D) |
on June 13
th
, 2017, the “Private Instrument of Confession of Indebtedness under Contingent Condition No. CD7/17” was executed between the Company, Estre Coleta Holding S.A. and the Creditor of the Confession, as amended on this date (“
Confession of Indebtedness Agreement
”), with the purpose of promoting several redemptions and/or partial repayments of the First Issuance Debentures until all First Issuance Debentures were redeemed and/or repaid;
|
(E) |
until the date of this Tenth Amendment, part of the First Issuance Debentures has already been redeemed and/or repaid and, consequently, (i) obligations arising from the First Issuance Debentures, totaling, on December 19
th
, 2017, three hundred and fifty-six million, six hundred and forty-nine thousand, nine hundred and thirty-three reais and sixty-five cents (BRL 356,649,933.65) were replaced, for all legal purposes, by the obligations set forth in the Confession of Indebtedness Agreement (“
Confession of Indebtedness
”); and (ii) obligations arising from the First Issuance Debentures, totaling, on December 19
th
, 2017, six hundred and sixty-six million, six hundred and forty-nine thousand, four hundred and fifty-four reais and seventy-eight cents (BRL 666,649,454.78), continued to be represented by one thousand, seven hundred and seventy-two (1,772) First Issuance Debentures;
|
(F) |
the Company began a process of reprofiling part of its financial debts, represented by the Debentures, First Issuance Debentures and by the Confession of Indebtedness, in order to equate its liabilities, its cash requirements and to enable the implementation of the Business Combination;
|
(G) |
the
Debenture Holders, the
Creditor of the Confession
, the holders of the First Issuance Debentures and the Company agreed to reprofile the debts represented by the Debentures, the First Issuance Debentures and by the
Confession of Indebtedness
, granting new terms for the payment of the interest and principal, amending the interest rate and the final maturity, besides granting a debt forgiveness on the pending outstanding balance, provided that (i) the guarantees currently granted to the First Issuance Debentures were released; (ii) some specific guarantees of the Debentures were released, including the Surety provided by Infraner Petróleo, Gás e Energia Ltda. (current corporate name of Estre Petróleo, Gás e Energia Ltda.); Pilares Participações Ltda.; CTR Itaboraí - Centro de Tratamento de Resíduos Itaboraí Ltda. and by LMG Participações Ltda; (iii) some specific guarantees currently granted to the Debentures and to the
Confession of Indebtedness
were shared between the respective creditors and the holders of the First Issuance Debentures; (iv) new guarantees were granted to (and shared between) the Debentures, the First Issuance Debentures and the
Confession of Indebtedness
; (v) the Fulfillment of the Business Combination occurs until December 25
th
, 2017; and (v) after the Fulfillment of the Business Combination (and, in any case, until December 26
th
, 2017), a payment is fulfilled by the Company, in the amount, in Reais, corresponding to, at least, one hundred million American Dollars (USD 100,000,000.00), until the maximum of two hundred million American Dollars (USD 200,000,000.00), considering that (a) forty-five point six percent (45.6%) of such amount shall be used to amortize the outstanding balance related with the with Secured Obligations related the Debentures, and (b) fifty-four point four percent (54.4%) shall be used to amortize the outstanding balance related with the Secured Obligations related with the First Issuance;
|
(H) |
as a result of the provisions of Recital (G) above:
|
(i) |
on December 19
th
, 2017, the Debenture Holders, together in a general meeting, approved: (a) the updating of the type of the Debentures, from unsecured to the real guarantee type; (b) the amendment, among others, of the following terms and conditions of the Debentures: (b.1) term and Maturity Date; (b.2) dates of the payment of the interest remuneration; (b.3) updating of the Nominal Unitary Value and incorporation of the Remuneration in the Nominal Unitary Value; (b.4) amortization dates of the Nominal Unitary Value; (b.5) the release of some specific guarantees currently granted to the Debentures, including the Surety provided by Infraner Petróleo, Gás e Energia Ltda. (current corporate name of Estre Petróleo, Gás e Energia Ltda.); Pilares Participações Ltda.; CTR Itaboraí - Centro de Tratamento de Resíduos Itaboraí Ltda. and by LMG Participações Ltda.; (b.6) the sharing of some specific guarantees currently granted to the Debentures with the
Confession of Indebtedness
; (b.7) inclusion of new guarantees and their sharing with the
Confession of Indebtedness
and with the First Issuance Debentures; (b.8) creation of mandatory early amortization events; (b.9) creation of compliance bonus; (b.10) amendment in the clauses regarding the optional early redemption and optional acquisition; (b.11) exclusion and inclusion of obligations and events of default; and (c) adjustments in the format and content of the other clauses as a result of the decisions object of said meeting, including those arising from CVM Normative Ruling No. 583, dated December 20
th
, 2016, which revoked CVM Normative Ruling No. 28, of November 23
rd
, 1983 and change of the corporate name of CETIP S.A - Mercados Organizados para B3 S.A. – Brasil, Bolsa, Balcão – Segmento CETIP UTVM;
|
(ii) |
on December 19
th
, 2017, the holders of the First Issuance Debentures, together in a general meeting, approved: (a) the amendment, among others, of the following terms and conditions of the First Issuance Debentures: (a.1)
term and Maturity Date; (a.2) dates of the payment of the interest remuneration
; (a.3)
amortization dates of the Nominal Unitary Value
; (a.4) change in the extension of the guarantors and release of the guarantees; (a.5) creation of mandatory early amortization event; (a.6) exclusion and inclusion of obligations and events of default; and (b)
adjustments in the format and content of the other clauses as a result of the decisions object of said meeting, including those arising from CVM Normative Ruling No. 583, dated December 20
th
, 2016, which revoked CVM Normative Ruling No. 28, of November 23
rd
, 1983 and change of the corporate name of CETIP S.A - Mercados Organizados para B3 S.A. – Brasil, Bolsa, Balcão – Segmento CETIP UTVM
;
|
(iii) |
on December 20
th
, 2017, the Confession of Indebtedness Agreement was amended to reflect, among others, the changes to the following terms and conditions of the Confession of Indebtedness: (a)
term and Maturity Date
; (b)
dates of the payment of the interest remuneration
; (c)
amortization dates of the
principal; (d)
the sharing of the guarantees currently granted to the
Confession of Indebtedness with the
Debentures
; (e)
inclusion of new guarantees and their sharing with the Debentures and with the First Issuance Debentures
, as applicable; (f) creation of a mandatory early amortization event; and (g) exclusion and inclusion of obligations and events of default;
|
(I) |
the Parties intend to amend and restate the Deed of Issuance, in order to reflect (i) the provisions of the above Recitals; and (ii) the updates of the events that have already occurred, under the terms set forth in this Tenth Amendment;
|
1. |
Authorization
|
1.1 |
This Tenth Amendment is executed based on the resolutions:
|
I. |
of the Debenture Holders’ General Meeting held on December 19
th
, 2017;
|
II. |
of the Company’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
III. |
of the Company’s Board of Directors’ Meeting held on December 20
th
, 2017;
|
IV. |
of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017
|
V. |
of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
VI. |
of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
VII. |
of the NGA’s Partners Meeting held on December 20
th
, 2017;
|
VIII. |
of the NGA Jardinópolis’ Partners Meeting held on December 20
th
, 2017;
|
IX. |
of the NGA Ribeirão Preto’s Partners Meeting held on December 20
th
, 2017;
|
X. |
of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XI. |
of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XII. |
of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XIII. |
of the CGR Guatapará’s Partners Meeting held on December 20
th
, 2017;
|
XIV. |
of the Ambiental Sul’s Partners Meeting held on December 20
th
, 2017;
|
XV. |
of Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XVI. |
of the Oxil’s Partners Meeting held on December 20
th
, 2017; and
|
XVII. |
of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017.
|
2. |
Amendment
|
2.1 |
The Deed of Issuance is hereby amended in accordance with the decisions set forth in Clause 1 above, and shall henceforth be in force in accordance with the terms and conditions comprised in the restated version transcribed in Exhibit I of this Tenth Amendment.
|
2.2 |
The consenting intervening parties are hereby excluded from the capacity of being parties and signatories of the Deed of Issuance, provided that any future amendment to the Deed of Issuance shall not depend on their consent or signature.
|
3. |
Warranties of the Company and of the Guarantors
|
3.1 |
The Company and the Guarantors in this act provide all the statements described in the restated version of the Deed of Issuance, comprised in Exhibit I of this Tenth Amendment, as if they were transcribed here.
|
4. |
General Provisions
|
4.1 |
The obligations assumed in this Tenth Amendment are irrevocable and irreversible, obliging the Parties and their successors, in any way, to its full compliance.
|
4.2 |
Any amendment to this Tenth Amendment shall only be considered valid if formalized in writing, in a specific instrument duly executed by all parties.
|
4.3 |
The invalidity or nullity, in whole or in part, of any of the provisions of this Tenth Amendment shall not affect the others, which shall remain valid and effective until the fulfillment by the parties of all their obligations hereunder.
|
4.4 |
Any tolerance, partial exercise or concession between the parties shall always be considered mere liberality and shall not constitute a waiver or loss of any right, faculty, privilege, prerogative or powers conferred (including mandate), nor shall it imply novation, alteration, compromise, remission, amendment or reduction of the rights and obligations arising therefrom.
|
4.5 |
The parties recognize this Tenth Amendment and the Debentures as extrajudicial enforcement instruments, pursuant to article 784, items I and III, of Law No. 13.105, dated March 16
th
, 2015, as amended (“
Brazilian Code of Civil Procedure
”).
|
4.6 |
For the purposes of this Tenth Amendment, the Parties may, in their sole discretion, request the specific enforcement of the obligations assumed herein, pursuant to articles 497 et seq., 538, 806 et seq. of the Brazilian Code of Civil Procedure, without prejudice to the right to declare the early maturity of the obligations arising from the Debentures, in accordance with the terms established in the Deed of Issuance.
|
5. |
Governing Law
|
5.1 |
This Tenth Amendment is governed by the laws of the Federative Republic of Brazil.
|
6. |
Jurisdiction
|
6.1 |
The district court of the City of São Paulo, São Paulo State, is herein elected to resolve any questions that may result from this Tenth Amendment, with the exclusion of any other, however privileged.
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
Name:
|
Name:
|
|
Position:
|
Position:
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer
|
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President
|
/s/ Pedro Silva
Name: Pedro Silva
Position: Attorney in fact
|
/s/ Mariana Scarabelli dos Santos Cardoso
Name: Mariana Scarabelli dos Santos Cardoso
Id.:
CPF/MF:
|
/s/ Priscila Scarabelli Alves
Name: Priscila Scarabelli Alves
Id.:
CPF/MF:
|
I. |
as issuer and offeror of the Debentures (as defined below):
|
II. |
as fiduciary agent, appointed in this Deed of Issuance, representing the Debenture Holders:
|
III. |
as guarantors, joint debtors and principal payers, jointly and severally with each other and with the Company:
|
1. |
Definitions
|
1.1 |
The following terms are considered defined terms, for the purposes of this Deed of Issuance, whether in the singular or in the plural, and capitalized terms used in this Deed of Issuance that are not defined herein have the meaning defined to them in the others Documents of the Secured Obligations related with the Debentures.
|
2. |
Authorizations
|
2.1 |
The Issuance, Offering and execution of this Deed of Issuance, the other Documents of the Secured Obligations regarding the Debentures and the Placement Agreement were made based on the deliberations:
|
I. |
the minutes of an extraordinary general meeting held on November 12, 2012;
|
II. |
the minutes of the extraordinary general meeting of Viva Ambiental held on November 12, 2012;
|
III. |
the minutes of the extraordinary general meeting of Cavo held on November 12, 2012;
|
IV. |
the minutes of the board meeting of Resicontrol held on November 12, 2012
|
V. |
the minutes of the meeting of the board of directors of Geo Vision held on November 16, 2012;
|
VI. |
of the minutes of the Debenture Holders’ General Meeting held on December 31, 2012;
|
VII. |
of the minutes of the Debenture Holders’ General Meeting held on December 13, 2013;
|
VIII. |
of the minutes of the Debenture Holders’ General Meeting held on April 16, 2014;
|
IX. |
of the minutes of the Debenture Holders’ General Meeting held on April 27, 2015;
|
X. |
of the minutes of the Debenture Holders’ General Meeting held on June 12, 2015;
|
XI. |
of the minutes of the Debenture Holders’ General Meeting held on July 30, 2015;
|
XII. |
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2015;
|
XIII. |
of the minutes of the Debenture Holders’ General Meeting held on October 29, 2015;
|
XIV. |
of the minutes of the Debenture Holders’ General Meeting held on November 9, 2015;
|
XV. |
of the minutes of the Debenture Holders’ General Meeting held on December 11, 2015;
|
XVI. |
of the minutes of the Debenture Holders’ General Meeting held on January 13, 2016;
|
XVII. |
of the minutes of the Debenture Holders’ General Meeting held on January 28, 2016;
|
XVIII. |
of the minutes of the Debenture Holders’ General Meeting held on February 29, 2016;
|
XIX. |
of the minutes of the Debenture Holders’ General Meeting held on April 29, 2016;
|
XX. |
of the minutes of the Debenture Holders’ General Meeting held on June 9, 2016;
|
XXI. |
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2016
|
XXII. |
of the minutes of the Debenture Holders’ General Meeting held on August 30, 2016;
|
XXIII. |
of the minutes of the Debenture Holders’ General Meeting held on December 9, 2016;
|
XXIV. |
of the minutes of the Debenture Holders’ General Meeting held on March 8, 2017;
|
XXV. |
of the minutes of the Debenture Holders’ General Meeting held on May 9, 2017;
|
XXVI. |
of the minutes of the Debenture Holders’ General Meeting held on July 10, 2017;
|
XXVII. |
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2017;
|
XXVIII. |
of the minutes of the Debenture Holders’ General Meeting held on December 12, 2017;
|
XXIX. |
of the minutes of the Debenture Holders’ General Meeting held on December 19, 2017;
|
XXX. |
of the meeting of the Board of Directors of the Company held on December 20, 2017;
|
XXXI. |
of the Company’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XXXII. |
of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XXXIII. |
of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XXXIV. |
of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XXXV. |
of the NGA Partners’ Meeting held on December 20, 2017;
|
XXXVI. |
of the NGA Jardinópolis Partners’ Meeting held on December 20, 2017;
|
XXXVII. |
of the NGA Ribeirão Preto Partners’ Meeting held on December 20, 2017;
|
XXXVIII. |
of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XXXIX. |
of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XL. |
of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLI. |
of the CGR Guatapará Partners’ Meeting held on December 20, 2017;
|
XLII. |
of the Ambiental Sul Partners’ Meeting held on December 20, 2017;
|
XLIII. |
of the Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLIV. |
of the Oxil Partners’ Meeting held on December 20, 2017;
|
XLV. |
of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20, 2017.
|
3. |
Requirements
|
3.1 |
The Issuance, Offering and execution of this Deed of Issuance, the other Documents of the Secured Obligations regarding the Debentures and the Placement Agreement were made in compliance with the following requirements:
|
I. |
filing and publication of the minutes of corporate acts
. Pursuant to article 62, item I of Brazilian Corporation Law:
|
(i) |
the minutes of the extraordinary general meeting held on November 12, 2012 were filed at JUCESP on December 7, 2012 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(ii) |
the minutes of the extraordinary general meeting of Viva Ambiental e Serviços S.A. held on November 12, 2012 were filed at JUCESP on December 19, 2012 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(iii) |
the minutes of the extraordinary general meeting of Cavo Serviços e Saneamento S.A. held on November 12, 2012 were filed at JUCESP on December 6, 2012 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(iv) |
the minutes of the Board of Directors’ Meeting of Resicontrol Soluções Ambientais S.A. from November 12, 2012 was filed at JUCESP on January 11, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(v) |
the minutes of the Board of Directors’ Meeting of Geo Vision Soluções Ambientais e Energia S.A. from November 16, 2012 was filed at JUCESP on January 11, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(vi) |
the minutes of the Debenture Holders’ General Meeting holders held on December 31, 2012 were filed at JUCESP on July 29, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(vii) |
the minutes of the Debenture Holders’ General Meeting holders held on December 13, 2013 were filed at JUCESP on December 26, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(viii) |
the minutes of the Debenture Holders’ General Meeting held on April 16, 2014 were filed at JUCESP on April 29, 2014 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(ix) |
the minutes of the Debenture Holders’ General Meeting held on April 27, 2015 was filed at JUCESP on May 12, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(x) |
the minutes of the Debenture Holders’ General Meeting held on June 12, 2015 was filed at JUCESP on July 23, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xi) |
the minutes of the Debenture Holders’ General Meeting held on July 30, 2015 were filed at JUCESP on August 24, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xii) |
the minutes of the Debenture Holders’ General Meeting held on September 29, 2015 were filed at JUCESP on October 26, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xiii) |
the minutes of the Debenture Holders’ General Meeting held on October 29, 2015 were filed at JUCESP on June 6, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xiv) |
the minutes of the Debenture Holders’ General Meeting held on November 9, 2015 were filed at JUCESP on February 11, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xv) |
the minutes of the Debenture Holders’ General Meeting held on December 11, 2015 was filed at JUCESP on February 18, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xvi) |
the minutes of the Debenture Holders’ General Meeting held on January 13, 2016 were filed at JUCESP on March 18, 2016 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(xvii) |
the minutes of the Debenture Holders’ General Meeting held on January 28, 2016 were filed at JUCESP on April 1, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xviii) |
the minutes of the Debenture Holders’ General Meeting held on February 29, 2016 were filed at JUCESP on June 3, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xix) |
the minutes of the Debenture Holders’ General Meeting held on April 29, 2016 were filed at JUCESP on July 15, 2016 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(xx) |
the minutes of the Debenture Holders’ General Meeting held on June 9, 2016 were filed at JUCESP on July 15, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxi) |
the minutes of the Debenture Holders’ General Meeting held on August 30, 2016 was filed at JUCESP on December 9, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxii) |
the minutes of the Debenture Holders’ General Meeting held on September 29, 2016 were filed at JUCESP on October 26, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxiii) |
the minutes of the Debenture Holders’ General Meeting held on December 9, 2016 were filed at JUCESP on January 10, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxiv) |
the minutes of the Debenture Holders’ General Meeting held on March 8, 2017 was filed at JUCESP on March 29, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxv) |
the minutes of the Debenture Holders’ General Meeting held on May 9, 2017 was filed at JUCESP on July 5, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxvi) |
the minutes of the Debenture Holders’ General Meeting held on July 10, 2017 was filed at JUCESP on September 14, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxvii) |
the minutes of the Debenture Holders’ General Meeting held on September 29, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxviii) |
the minutes of the Debenture Holders’ General Meeting held on December 12, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxix) |
the minutes of the Debenture Holders’ General Meeting held on December 12, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxx) |
the minutes of the meeting of the Company’s Board of Directors held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxi) |
the minutes of the Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxii) |
the minutes of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxiii) |
the minutes of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxiv) |
the minutes of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxv) |
the minutes of NGA Jardinópolis Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxvi) |
the minutes of NGA Ribeirão Preto Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxvii) |
the minutes of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxviii) |
the minutes of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCEBA and published at DOEBA
and the newspaper “Jornal Tribuna da Bahia” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xxxix) |
the minutes of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCEAL and published at DOEAL
and the newspaper “Jornal A Gazeta - Alagoas” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xl) |
the minutes of CGR Guatapará Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xli) |
the minutes of Ambiental Sul Partners’ Meeting held on December 20, 2017 shall be filed at JUCEPAR pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xlii) |
the minutes of the Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xliii) |
the minutes of Oxil Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
(xliv) |
the minutes of NGA Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex II; and
|
(xlv) |
the minutes of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex II;
|
II. |
subscription and registration of this Deed of Issuance and its amendments.
Pursuant to article 62, section II and paragraph 3, of Brazilian Corporation Law, and articles 129 and 130 of Law No. 6,015, dated December 31, 1973, as amended:
|
(i) |
this Deed of Issuance was registered with JUCESP on December 7, 2012, under number ED001063‑7/000, the first amendment to this Deed of Issuance was registered at JUCESP on January 4, 2013, under number ED001063‑7/001, the second amendment to this Deed of Issuance was registered with JUCESP on December 26, 2013, under number ED001063‑7/002, the third amendment to this Deed of Issuance was registered with JUCESP on 27 of June 2016, under number ED001063‑7/003, the fourth amendment to this Deed of Issuance was registered at JUCESP on December 9, 2016, under number ED001063‑7/004, the fifth amendment to this Deed of Issuance was registered with JUCESP on December 27, 2016, under number ED001063‑7/005, the sixth amendment to this Deed of Issuance was registered with JUCESP on January 17, 2017 under number ED001063‑7/006, the seventh amendment to this Deed of Issuance, was registered with JUCESP on April 25, 2017, under number ED001063‑7/007, the eighth amendment to this Deed of Issuance, was registered with JUCESP on June 1, 2017, under number ED001063‑7/008, the ninth amendment to this Deed of Issuance was registered with JUCESP on August 23, 2017 under number ED001063‑7/009, and the tenth amendment to this Deed of Issuance and its other amendments will be registered with JUCESP; and
|
(ii) |
Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on November 30, 2012, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on December 14, 2012, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on December 20, 2012, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on January 31, 2014, the Registry of Deeds and Documents of the City of Rosário do Catete, State of Sergipe, on December 5, 2013, the Registry of Deeds and Documents and Legal Entities on December 18, 2012, the first amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on December 20, 2012, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on March 19, 2013, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on December 20, 2012, the Registry of Deeds and Documents of the City of Rosário do Catete, State of Sergipe, on March 26, 2013, the Registry of Deeds and Documents and Legal Entities of the City of Curitiba, State of Paraná, on March 28, December 2, 2012, the second amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on December 23, 2013, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on February 27, 2014, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on December 27, 2013, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on February 3, 2014, the third amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on June 22, 2016 , the 1
st
Registry of Deeds and Documents of the City of Sorocaba, State of São Paulo, on July 11, 2017, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on September 13 of 2017, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on June 30, 2016, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on September 23, 2016, the fourth amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on September 21, 2016, the 1
st
Registry of Deeds and Documents of the Region of the City of Sorocaba, State of São Paulo, on July 11, 2017, the Registry of Deeds and Documents of the District of the City of Itaboraí, State of Rio de Janeiro, on September 13, 2017, the 5
th
Registry of Deeds and Documents of the City of Rio de Rio de Janeiro, on September 23, 2016, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on September 27, 2016, the fifth amendment to this Deed of Issuance was registered the 2
nd
Registry of Deeds and Documents of the District of the City of São Paulo, State of São Paulo, on November 16, 2016, July of 2017, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on September 13, 2017, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de January, on November 22, 2016, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on January 13, 2017, the sixth amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on February 1, 2017, the 1
st
Registry of Deeds and Documents of the City of Sorocaba, State of São Paulo, on July 11, 2017, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on September 13, 2017, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on December 29, 2016, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on January 13, 2017, the seventh amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on April 7, 2017, the Registry of Deeds and Documents of the City of Sorocaba, State of São Paulo, on July 11, 2017, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on September 13, 2017, the 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on April 13, 2017 , the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on April 18, 2017, the eighth amendment to this Deed of Issuance was registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on May 29, 2017, the 1
st
Registry of Deeds and Documents of the City of Sorocaba, State of São Paulo, on July 11, 2017, the Registry of Deeds and Documents of the City of Itaboraí, State of Rio de Janeiro, on September 13, 2017, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on June 9, 2017, the ninth amendment to this Deed of Issuance registered with the 2
nd
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on August 23, 2017, the 1
st
Registry of Deeds and Documents of the City of Sorocaba, State of São Paulo, on September 5, 2017, the 2
nd
Registry of Deeds and Documents of the City of Salvador, State of Bahia, on September 11, 2017, the tenth and other amendments to this Deed of Issuance shall be registered or recorded, as the case may be, in the competent Registry of Deeds and Documents of the Parts;
|
III. |
constitution of the Fiduciary Disposals of Properties
. Subject to the provisions of Clause 7.12 below, the Fiduciary Disposals of Properties were formalized through the Agreements regarding the Fiduciary Disposal of Properties, and in relation to properties located in the City of São Paulo, State of São Paulo, shall be pre-dated until December 26 of 2017 (and in any case, before the date of Fulfillment of the Business Combination), and in relation to other properties, must be pre-dated until January 10, 2018, and in any case, must be duly constituted of in accordance with the schedule set forth in
Annex I
to this Deed of Issuance under the Agreements regarding the Fiduciary Disposal of Properties, by registering the Agreements regarding the Fiduciary Disposal of Properties with the competent Real Estate Registry Office(s) ;
|
IV. |
constitution of the Fiduciary Disposal of Shares
. Subject to the provisions of Clause 7.10 below, the Fiduciary Disposal of Shares were (or, in relation to the shares of the Company, shall be) formalized through the Fiduciary Disposal of Shares Agreement, provided that the Fiduciary Disposal of Shares shall be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Disposal of Shares Agreement;
|
V. |
constitution of the Fiduciary Disposal of Quotas
. Subject to the provisions of Clause 7.11 below, the Fiduciary Disposal of Quotas were formalized through the Agreements regarding the Fiduciary Disposal of Quotas, provided that the Fiduciary Disposal of Quotas shall be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Disposal of Quotas Agreement;
|
VI. |
constitution of the Fiduciary Assignment – Properties
. Subject to the provisions of Clause 7.13 below, the Fiduciary Assignment – Properties was formalized through the Fiduciary Assignment – Properties Agreement, provided that the Fiduciary Assignment – Properties must be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Assignment – Properties Agreement;
|
VII. |
constitution of the Fiduciary Assignment – Surplus
. Subject to the provisions of Clause 7.14 below, the Fiduciary Assignment – Surplus was formalized through the Fiduciary Assignment – Surplus Agreement, provided that the Fiduciary Assignment – Surplus must be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Assignment – Surplus Agreement;
|
VIII. |
deposit for placement
. The Debentures were deposited for placement in the primary market through the Securities Placement Module, currently denominated Asset Allocation Module, and the placement of the Debentures was financially settled through B3 (current denomination of CETIP S.A. - Organized Markets);
|
IX. |
deposit for negotiation and electronic custody
. Pursuant to Clause 6.4 below, the Debentures were deposited for trading in the secondary market through the National Debenture Module (SND), currently denominated CETIP21, with the trading of the Debentures being financially settled through B3 and the Debentures deposited electronically in B3;
|
X. |
registration of the Offer by the Securities Commission
. The Offer was automatically exempted from registration by the Securities Comission, pursuant to Article 6 of Securities Commission Instruction 476, as it is a public offer of placement with restricted placement efforts;
|
XI. |
registration of the Offer by ANBIMA.
Pursuant to article 25, paragraph 1, of the “ANBIMA Code of Regulation and Best Practices for the Public Offerings regarding the Placement and Acquisition of Securities”, then in force at the time of the Offer, the Offer was not registered with ANBIMA.
|
4. |
Corporate Purpose Of the Company
|
4.1 |
The Company’s corporate purpose is (a) the execution in Brazil or abroad of public or private works in the various civil engineering sectors, such as residential, commercial and industrial buildings; earthworks, drainage, paving and complementary works of road systems, urban or rural; collection, treatment, storage and distribution of water; interception, conduction and treatment of sanitary and industrial sewage; (b) the management of waste of any kind, including, but not limited to, gaseous, liquid, semi-liquid and solid waste, whether industrial, commercial, hospital, urban or otherwise; (c) the provision of waste management services of any kind, including, but not limited to, research services, prior diagnostics, certification, documentation management, identification, segregation, sorting, packaging, handling, recycling, reuse recovery, transhipment, collection and transport of all types of waste (solid, liquid and gaseous), storage, treatment, decontamination, remediation, cleaning, final disposal, execution of projects, consulting and consulting in the area of engineering; (d) the implementation, operation and maintenance of environmental projects, such as: sanitary landfills for final disposal of solid household, industrial and hospital waste; waste factories; incinerators and disinfectants of any type of waste; organic and industrial waste composting plants (inert or not); and solid waste recycling and treatment plants; (e) treatment of any type of waste and effluent, including, but not limited to, physical, biological and/or thermal treatment, with or without premixing, in own or third-party facilities; (f) the commercialization of waste of any kind, scrap, by-products, miscellaneous materials and recycled aggregates of solid construction waste; (g) sweeping and cleaning public streets and public places; (h) provision of laboratory services of all types, including, but not limited to, sampling, sample preparation, performance of various analyzes and preparation of reports and reports on interpretation of results; (i) the provision of environmental consulting services, including, but not limited to, the preparation of management plans, master plans, market studies, studies for the choice of technology, geological and hydrological reports, environmental management, research activities, diagnosis, risk analysis and detailed projects for the management of environmental liabilities and impacted areas; (j) any service or activity linked to the management of waste of all kinds and class and/or control or improvement of environmental and ecological conditions; (k) leasing of equipment and machinery; (l) the operation of treatment of water, sewage and/or industrial effluents; (m) the implementation of Clean Development Mechanism (CDM) projects to reduce emissions of gases and effluents; (n) geotechnical monitoring and landfill stability services, and groundwater, surface and effluent monitoring; and (o) participation in other companies as partner or shareholder, and may also carry out mergers, mergers and associations with other companies.
|
5. |
Destination Of the Funds
|
5.1 |
The net proceeds obtained by the Company through this Issuance were intended to (a) the prepayment of the Bank Credit Note No. 1011121000002700, issued on October 10, 2012 in favor of Banco Itaú BBA S.A, whose funds were used for the acquisition by the Company of Geo Vision, upon payment of up to BRL 115,000,000 (one hundred and fifteen million Reais); (b) prepayment of bank indebtedness and extension of the debt profile of the Company and of companies whose shares or quotas, as the case may be, were 100% (one hundred percent) held by the Company; and (c) recomposition of the Company’s working capital.
|
6. |
Characteristics Of The Offer
|
6.1 |
Placing
. The Debentures were the object of a public offering of placement with restricted placement efforts, under the terms of the Securities Market Law, Securities Commission Instruction 476 and other applicable legal and regulatory provisions, and the Placement Agreement, with the intermediation of the Coordinators, under (i) the system of firm guarantee of placement, in relation to BRL 650,000,000 (six hundred and fifty million Reais); and the system of best placement efforts, in relation to BRL 100,000,000 (one hundred million Reais), targeting Professional Investors.
|
6.2 |
Term of Subscription
. Respecting compliance with the requirements referred to in Clause 3 above, the Debentures were subscribed in compliance with the provisions of Sections 7-A and 8, paragraph 2
nd
, of Securities Commission Instruction 476.
|
6.3 |
Form of Subscription and of Payment and Payment Price
. The Debentures were subscribed and paid up through the SDT (Securities Placement Module), currently denominated MDA, by a maximum of 20 (twenty) Professional Investors, at the time of subscription (“
Payment Date
”), and in currency, at the Nominal Unit Value, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date to the respective Payment Date (“
Payment Price
”).
|
6.4 |
Trading
. The Debentures were deposited for trading in the secondary market through SND – National Debentures Module, currently denominated CETIP21. The Debentures may only be traded on the organized over-the-counter market after 90 (ninety) days from each subscription or acquisition by the investor, pursuant to articles 13 and 15 of Securities Commission Instruction 476, observing the Company’s compliance with the obligations provided for in article 17 of Securities Commission Instruction 476. The Debentures may only be negotiated between qualified investors, as defined in the terms of article 9 B of Securities Commission Instruction 539, unless the Company obtains the registration referred to in article 21 of the Law of the Securities Market.
|
7. |
Characteristics Of Issuance And Debentures
|
7.1 |
Issuance Number
. The Debentures represent the 2
nd
(second) issuance of debentures of the Company.
|
7.2 |
Total Issuance Value
. The total amount of the Issue was BRL 750,000,000 (seven hundred and fifty million Reais), on the Issuance Date, of which 400 (four hundred) Debentures were canceled, with the total amount of the Issuance being BRL 650,000,000 (six hundred and fifty million Reais) on the Issuance Date.
|
7.3 |
Quantity
. Three thousand (3,000) Debentures were issued and 400 (four hundred) Debentures were canceled, with the total amount being 2,600 (two thousand and six hundred) Debentures.
|
7.4 |
Nominal Unitary Value
. The Debentures will have a nominal unit value of BRL 250,000 (two hundred and fifty thousand Reais), on the Issuance Date (“
Nominal Unitary Value
”).
|
7.5 |
Series
. The Issuance was carried out in a single series.
|
7.6 |
Form and Proof of Entitlement
. The Debentures were issued in registered, book-entry form, without issuance of certificates, and for all legal purposes, the ownership of the Debentures will be proved by the deposit account statement issued by the Bookeeping, and, in addition, in relation to the Debentures which are deposited electronically in B3, shall be evidenced by the statement issued by B3 on behalf of the Debenture Holder.
|
7.7 |
Convertibility
. The Debentures are not convertible into shares issued by the Company.
|
7.8 |
Type
. The Debentures are of the real guarantees’ type by virtue of Article 58 of the Brazilian Corporation Law, consisting of the Fiduciary Disposal of Shares, pursuant to Clause 7.11 below, in the Fiduciary Disposal of Quotas, pursuant to Clause 7.11 below, and in the Fiduciary Disposals of Properties, pursuant to Clause 7.12 below . In addition, the Debentures are guaranteed by the Surety, pursuant to Clause 7.9 below.
|
7.9 |
Fiduciary Guarantee and Passive Joint Liability
. The Guarantors hereby bind themselves and the Company, irrevocably and irreversibly, before the Debenture Holders, as guarantors, joint debtors, principal payers and jointly and severally (among themselves and with the Company) responsible for all the Secured Obligations related with the Debentures, expressly renouncing to the benefits of order, rights and powers of exoneration of any nature provided in articles 333, single paragraph, 364, 366, 368, 821, 827, 829, single paragraph, 830, 834, 835 , 837, 838 and 839 of the Civil Code, and Articles 130 and 794 of the Code of Civil Procedure, for full payment of the Secured Obligations related with the Debentures, on the dates set forth in this Deed of Issuance, regardless of judicial or extrajudicial notification, or any another measure, subject to the provisions of Clause 7.29 below (“
Surety
”).
|
7.9.1 |
The Fiduciary Agent shall request the judicial or extrajudicial enforcement of the Surety, according to the function assigned to it in this Deed of Issuance, once verified any hypothesis of insufficiency of payment of any Secured Obligations regarding the Debentures. The Surety may be exported and required by the Fiduciary Agent of any of the Guarantors, jointly or severally, as often as necessary until the full and effective discharge of all Secured Obligations related with the Debentures, provided that failure by the Fiduciary Agent shall not cause, in any event, loss of the right of execution of the Guarantee by the Debenture Holders.
|
7.9.2 |
The Surety shall enter into force on the date of execution of this Deed of Issuance and shall remain valid until the full payment of the Secured Obligations related with the Debentures.
|
7.9.3 |
Each of the Guarantors, from now on, agrees and undertakes, (i) only after having fully removed the Secured Obligations related with the Debentures, to demand and/or sue the Company or any of the other Guarantors as a result of any amount honored under the Secured Obligations regarding the Debentures; and (ii) if it receives any value from the Company and/or any of the other Guarantors as a result of any amount it has honored pursuant to Secured Obligations prior to the full settlement of the Secured Obligations related with the Debentures, and any of the Secured Obligations Regarding the Debentures, it is pending payment, to transfer, within one (1) Business Day counted from the date of its receipt, such amount to the Debenture Holders. For the purposes of this Clause, the honor of the Surety will not be considered in default under the terms provided herein.
|
7.9.4 |
In the event of the foreclosure from the Fiduciary Disposal of Shares issued by the Company, each of the Guarantors hereby waives any right to recover from the Company, the Debenture Holders and/or the other Guarantors, any amount it has honored under of this Deed of Issuance, thus not subrogating, in this case, the credit rights corresponding to the Secured Obligations. The assignment of any credit arising from honoring the Surety to any third party is hereby prohibited.
|
7.9.5 |
Payments made by the Guarantors with respect to the Debentures shall be made in such a way that the Debenture Holders receive from the Guarantors the amounts that would be delivered to them if such payments had been made by the Company, and it is not for the Guarantors to make any deduction that does not would be performed by the Company if the Company had made the respective payment.
|
7.9.6 |
In the event of transfer of ownership of all shares or quotas, as applicable, issued by any of the Guarantors as a result of the execution or exemption procedure provided for in the respective Agreements regarding the Fiduciary Disposal of Shares or Agreements regarding the Fiduciary Disposal of Quotas , as the case may be, upon receipt of the amounts of execution or exemption by the Debenture Holders and the Creditor of the Confession, the respective Guarantor whose shares or quotas were object of the execution or exemption will be released from the Surety and will cease to be jointly and severally co-payer under of this Deed of Issuance automatically and independently of any additional formality (including independently of any addition to this Deed of Issuance).
|
7.9.7 |
The execution of the Surety provided by V2 Ambiental will be limited to the amount that exceeds the amounts necessary for the payment of all capital and operational expenses to which V2 Ambiental, by virtue of concession agreement n. 85/2009, is obligated.
|
7.10 |
Fiduciary Disposal of Shares
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures, observing the provisions of Clause 7.15 below and in the respective Agreements regarding the Fiduciary Disposal of Shares, the fiduciary dispositions of (“
Fiduciary Disposal of Shares
”) (“
Fiduciary Disposed Shares
”) shall be constituted:
|
I. |
common, nominative shares with no nominal value, issued by the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2, representing the total voting capital and total of the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2;
|
II. |
the shares resulting from unfolding, splits and/or bonuses resulting from the actions referred to in the previous items;
|
III. |
the shares issued in replacement of the shares referred to in the previous items, including those issued as a result of a corporate transaction involving the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2;
|
IV. |
with respect to the shares referred to in the preceding paragraphs, the right to subscribe for new shares representing the capital stock of the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2, including the right to subscribe for guarantess, convertible debentures, beneficiary shares, certificates, securities and other securities convertible or exchangeable in shares; and
|
V. |
with respect to the shares or securities referred to in the preceding paragraphs, all rights thereto, including the right to receive income, profits, dividends, interest on capital and/or any other distribution of profits, in cash or any other form, paid in accordance with the applicable legislation, subject to the provisions of the Agreements regarding the Fiduciary Disposal of Shares.
|
7.10.1 |
Under the terms of the Agreements regarding the Fiduciary Disposal of Shares, the respective Fiduciary Disposal of Shares, Fiduciary Disposed Shares corresponding to the total shares issued by the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2 (“
Percentage of the Fiduciary Disposal of Shares
”).
|
7.10.2 |
The provisions relating to the Fiduciary Disposal of Shares and the Percentage of the Fiduciary Disposal of Shares are described in the Agreements regarding the Fiduciary Disposal of Shares, which are an integral, complementary and inseparable part of this Deed of Issuance.
|
7.11 |
Fiduciary Disposal of Quotas
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures, observing the provisions of Clause 7.15 below and in the respective Agreements regarding the Fiduciary Disposal of Quotas, the fiduciary disposals of (“
Fiduciary Disposal of Quotas
”) (“
Fiduciary Disposed Quotas
”) shall be constituted:
|
I. |
the quotas issued by NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul, representing the entire voting and total capital stock of NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, the NGA, Oxil and the Ambiental Sul
|
II. |
the quotas resulting from unfolding, splits and/or bonuses resulting from the actions referred to in the previous items;
|
III. |
the quotas issued in replacement of the quotas referred to in the previous items, including those issued as a result of a corporate transaction involving NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul;
|
IV. |
in relation to the quotas referred to in the preceding paragraphs, the right to subscribe new shares representing the capital stock of NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul, and other convertible or exchangeable in quotas; and
|
V. |
with respect to the quotas or securities referred to in the preceding paragraphs, all rights thereto, including the right to receive income, profits, dividends, interest on own capital and/or any other distribution of profits, in cash or any other form, paid in accordance with the applicable legislation, in compliance with the provisions of the Agreements regarding the Fiduciary Disposal of Quotas.
|
7.11.1 |
Under the terms of the Agreements regarding the Fiduciary Disposal of Quotas, in the respective Fiduciary Disposal of Quotas, Fiduciary Disposed Quotas corresponding to all the quotas issued by NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and the Ambiental Sul (“
Percentage of the Fiduciary Disposal of Quotas
”).
|
7.11.2 |
The provisions regarding Fiduciary Disposal of Quotas and the Percentage of the Fiduciary Disposal of Quotas are described in the Agreements regarding the Fiduciary Disposal of Quotas, which are an integral, complementary and inseparable part of this Deed of Issuance.
|
7.12 |
Fiduciary Disposals of Properties
. In guarantee of the integral and punctual payment of a certain percentage of the Secured Obligations regarding the Debentures provided for in the respective Agreements regarding the Fiduciary Disposal of Properties, observing the provisions of Clause 7.15 below, shall be duly constituted in accordance with the schedule in Annex I to this Deed of the Issuance, in favor of the Debenture Holders, represented by the Fiduciary Agent, as provided in the Agreements regarding the Fiduciary Disposal of Properties, the fiduciary disposals of the following properties (“
Fiduciary Disposals of Properties
”):
|
I. |
Ceará Property;
|
II. |
Curitiba Property;
|
III. |
Feira de Santana Property;
|
IV. |
Guatapará Property;
|
V. |
Itapevi 1 Property;
|
VI. |
Itapevi 2 Property;
|
VII. |
Jardinopólis Property;
|
VIII. |
Mandirituba Property;
|
IX. |
Paulínia 1 Property;
|
X. |
Paulínia 2 Property;
|
XI. |
Piratininga Property;
|
XII. |
Prudente Property;
|
XIII. |
Sarandi Property;
|
XIV. |
Sergipe - Carmópolis Property;
|
XV. |
Sergipe – Nossa Senhora do Socorro Property;
|
XVI. |
Tremembé 1 Property; and
|
XVII. |
Tremembé 2 Property.
|
7.12.1 |
The provisions relating to Fiduciary Disposals of Properties are described in the Agreements regarding the Fiduciary Disposal of Properties, which are an integral, complementary and inseparable part of this Deed of Issuance.
|
7.13 |
Fiduciary Assignment - Properties
. In guarantee of the integral and timely payment of the Secured Obligations related with the Debentures, observing the provisions of Clause 7.15 below and in the Fiduciary Assignment – Properties Agreement, a fiduciary assignment of certain receivables arising from certain deeds of purchase and sale of real estate and Fiduciary Assignment - Properties (“
Fiduciary Assignment - Properties
”).
|
7.13.1 |
The provisions relating to the Fiduciary Assignment – Properties are described in the Fiduciary Assignment – Properties Agreement, which is an integral, complementary and inseparable part of this Deed of Issuance.
|
7.14 |
Fiduciary Assignment – Surplus
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures observing the provisions of Clause 7.15 below in the Fiduciary Assignment – Surplus Agreement, a fiduciary assignment of certain receivables owned by the Company (“
Fiduciary Assignment – Surplus
”) shall be constituted.
|
7.14.1 |
The Fiduciary Assignment – Surplus provisions are described in the Fiduciary Assignment – Surplus Agreement, which is an integral, complementary and inseparable part of this Deed of Issuance.
|
7.15 |
Sharing
.
|
7.15.1 |
Sharing A
. The Fiduciary Disposals of Properties shall be shared between the Secured Obligations regarding the Debentures and the Secured Obligations related with the Confession of Indebtedness, in a
pari passu
manner and observed the Proportion regarding Sharing A.
|
7.15.2 |
Sharing B
. The Surety, the Fiduciary Disposal of Shares, the Fiduciary Disposal of Quotas, the Fiduciary Assignment – Properties and the Fiduciary Assignment – Surplus shall be shared between the Secured Obligations in relation to the Debentures, the Secured Obligations related to the Confession of Indebtedness and the Restricted Offer the First Issuance
pari passu
and observed the Proportion regarding Sharing B.
|
7.16 |
Release Guarantees
. Through Optional Early Redemption and the full settlement of Confession of Indebtedness and Restricted Offerings under the First Issuance, the Guarantees shall be fully released.
|
7.17 |
Issuance Date
. For all legal purposes, the issuance date of the Debentures is December 14, 2012 (“
Issuance Date
”).
|
7.18 |
Term and Maturity Date
. Subject to the hypotheses of early redemption of the Debentures or early maturity of the obligations arising from the Debentures, under the terms set forth in this Deed of Issuance, the Debentures shall be for 4,750 (four thousand, seven hundred and fifty) days as of the Issuance Date, therefore, on December 20, 2025 (“
Maturity Date
”).
|
7.19 |
Payment of the Nominal Unitary Value
. Without prejudice to the payments due to early redemption of the Debentures, early amortization of the Debentures or early maturity of the obligations arising from the Debentures, under the terms set forth in this Deed of Issuance, the Nominal Unitary Value of the Debentures will be amortized in successive installments on the dates below, being:
|
Date of Payment
|
Value
|
December 14, 2014
|
BRL 35,714.25 (thirty-five thousand, seven hundred and fourteen Reais and twenty-five cents)
|
December 20, 2020
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2021
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2021
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2022
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2022
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2023
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2023
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2024
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2024
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2025
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2025
|
Outstanding balance of the Nominal Unitary Value
|
7.20 |
Remuneration
. The remuneration of the Debentures will be as follows:
|
I. |
monetary adjustment
: Nominal Unitary Value of the Debentures will not be monetarily restated; and
|
II. |
interest remuneration
: on the debit balance of the Nominal Unitary Value of the Debentures, interest will be paid corresponding to 100% (one hundred percent) of the accumulated variation of the DI Rate, plus a surcharge (“
Surcharge
”, and, together with the DI Rate,
Remuneration
”) of:
|
(i) |
between the Issuance Date (inclusive) and the date of realization of the first mandatory early amortization (exclusive), 2.60% (two and sixty hundredths percent) per year, base 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively
pro rata temporis
, for business days elapsed, from the Issuance Date or the date of payment or incorporation of Remuneration immediately prior (including), as the case may be, until the effective payment date; and
|
(ii) |
from the date of the first Mandatory Early Amortization (inclusive), 2.00% (two percent) per year, basis 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively pro rata (s), from the date of the first Mandatory Early Amortization or the date of payment or incorporation of Remuneration immediately preceding (including), as the case may be, until the date of actual (exclusive) payment.
|
12/20/2019
|
06/20/2020
|
12/20/2020
|
06/20/2021
|
12/20/2021
|
06/20/2022
|
12/20/2022
|
06/20/2023
|
12/20/2023
|
06/20/2024
|
12/20/2024
|
06/20/2025
|
Maturity Date
|
7.20.1 |
The Remuneration incurred between each of the Capitalization Periods (as defined below) will be included in the outstanding balance of the Nominal Unitary Value on the following dates:
|
12/20/2017
|
01/20/2018
|
02/20/2018
|
03/20/2018
|
04/20/2018
|
05/20/2018
|
06/20/2018
|
07/20/2018
|
08/20/2018
|
09/20/2018
|
10/20/2018
|
11/20/2018
|
12/20/2018
|
01/20/2019
|
02/20/2019
|
03/20/2019
|
04/20/2019
|
05/20/2019
|
06/20/2019
|
7.20.2 |
For purposes of Clause 7.20.1 “Capitalization Period” means the time interval that:
|
I. |
begins on December 14, 2014, inclusive, and ends on December 20, 2017, exclusive;
|
II. |
begins on December 20, 2017, inclusive, and ends January 20, 2018, exclusive;
|
III. |
starts on January 20, 2018, inclusive, and ends February 20, 2018, exclusive;
|
IV. |
begins on February 20, 2018, inclusive, and ends March 20, 2018, exclusive;
|
V. |
begins on March 20, 2018, inclusive, and ends April 20, 2018, exclusive;
|
VI. |
begins on April 20, 2018, inclusive, and ends May 20, 2018, exclusive;
|
VII. |
begins on May 20, 2018, inclusive, and ends June 20, 2018, exclusive;
|
VIII. |
begins on June 20, 2018, inclusive, and ends July 20, 2018, exclusive;
|
IX. |
begins on July 20, 2018, inclusive, and ends August 20, 2018, exclusive;
|
X. |
begins on August 20, 2018, inclusive, and ends September 20, 2018, exclusive;
|
XI. |
begins on September 20, 2018, inclusive, and ends October 20, 2018, exclusive;
|
XII. |
begins on October 20, 2018, inclusive, and ends November 20, 2018, exclusive;
|
XIII. |
begins on November 20, 2018, inclusive, and ends on December 20, 2018, exclusive;
|
XIV. |
begins on December 20, 2018, inclusive, and ends January 20, 2019, exclusive;
|
XV. |
begins on January 20, 2019, inclusive, and ends February 20, 2019, exclusive;
|
XVI. |
begins on February 20, 2019, inclusive, and ends March 20, 2019, exclusive;
|
XVII. |
begins on March 20, 2019, inclusive, and ends April 20, 2019, exclusive;
|
XVIII. |
begins on April 20, 2019, inclusive, and ends May 20, 2019, exclusive; and
|
XIX. |
begins on May 20, 2019, inclusive, and ends June 20, 2019, exclusive.
|
7.20.3 |
Subject to the provisions of Clause 7.20.4 below, if, when calculating any pecuniary obligations related to the Debentures provided for in this Deed of Issuance, the DI Rate is not available, the percentage corresponding to the last one will be used instead DI Rate officially disclosed up to the calculation date, and no financial compensation, fines or penalties are payable between the Company, the Guarantors and/or the Debenture Holders, upon the subsequent disclosure of the DI Rate.
|
7.20.4 |
In the event of extinction, limitation and/or non-disclosure of the DI Rate for more than ten (10) consecutive days after the date expected for its determination and/or disclosure, or in case of impossibility of applying the DI Rate to the Debentures by a legal or judicial prohibition, the Fiduciary Agent shall, within a period of up to five (5) days as from the date of expiration of the term of ten (10) consecutive days or of the date of extinction of the DI Rate or of the date of legal or judicial prohibition, as the case may be, to convene a general meeting of Debenture Holders for Debenture Holders to resolve, in agreement with the Company and observing the applicable regulations, the new parameter of remuneration of the Debentures to be applied, which should be the one that best reflects market conditions effective at the time, which parameter should preserve the real value and the same levels of Remuneration. Until the determination of this new parameter of remuneration of the Debentures, when calculating any pecuniary obligations related to the Debentures provided for in this Deed of Issuance, the percentage corresponding to the last officially declared DI Rate shall be used to calculate the DI Rate, and no financial compensation, fines or penalties shall be payable between the Company, the Guarantors and/or the Debenture Holders upon the determination of the new remuneration parameter for the Debentures. In the event that the DI Rate is re-released prior to the general meeting of Debenture Holders set forth above, said general meeting of Debenture Holders will not be held, and the DI Rate, as of the date of its disclosure, will again be used for the calculation of any pecuniary obligations related to the Debentures provided for in this Deed of Issuance. If there is no agreement on the new remuneration of the Debentures between the Company and Debenture Holders representing at least (i) 60% (sixty percent) of the Debentures in Circulation, according to the General Meeting of Debenture Holders on first call; or (ii) 51% (fifty one percent) of the Debentures in Circulation, according to the general meeting of Debenture Holders held on second call, the Company undertakes to redeem all Debentures (without prejudice to the its consequent cancellation, within 30 (thirty) days from the date of the general meeting of Debenture Holders provided for above or on the Maturity Date, whichever occurs first, by the outstanding balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately preceding Remuneration, as the case may be, until the date of actual payment, without any premium or penalty, and for the calculation of any pecuniary obligations related to the Debentures in this Deed of Issuance, the percentage corresponding to the last officially announced DI Rate shall be used to calculate the DI Rate.
|
7.20.5 |
The Guarantors hereby agree to the provisions of Clauses 7.20.1 and 7.20.4 above, stating that the provisions therein shall not affect novation, as defined and regulated pursuant to Article 360 et seq. of the Civil Code, and the Surety shall remain valid and in full force, including in case of an obligation to the Company to redeem the Debentures, as provided above, or in case of default of such obligation. The Guarantors, from now on, agree and undertake to sign any and all documents necessary for the effectiveness of the provisions of Clause 7.20.4 above.
|
7.21 |
Scheduled renegotiation
. There will be no scheduled renegotiation.
|
7.22 |
Optional Early Redemption
. The Company may at its sole discretion carry out at any time the early redemption of the totality (the partial redemption of the Debentures being prohibited), with the consequent cancellation of such Debentures, upon payment of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the date of actual payment, without any premium or penalty, provided that (i) notice to the Debenture Holders (by posting notice pursuant to Clause 7.35 below or by individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, Bookeeping, Settling Bank and B3, of 5 (five) Business Days of the date of the event; (ii) the simultaneous early redemption of the outstanding balance of the Secured Obligations related to the Confession of Indebtedness and the early redemption of all First Issuance Debentures, with the exception of the early redemption as a result of an Event of Migration (“
Optional Early Redemption
”).
|
7.23 |
Optional Early Amortization
. The Company may, at its sole discretion, make, at any time, early amortization of the outstanding balance of the Nominal Unitary Value of all Debentures, upon payment of a portion to be amortized of the debit balance of the Nominal Unitary Value of the Debentures, limited to 98 percent (ninety-eight per cent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately preceding Remuneration, as the case may be, until the date of actual payment, without any premium or penalty, provided that: (i) with prior notice to the Debenture Holders (by publication of notice pursuant to Clause 7.35 below or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, the Bookeeping, Settling Bank and B3, of 2 (two) Business Days of the date of the event; and (ii) the anticipated amortization of the outstanding balance of the Restricted Offer regarding the First Issuance and the Secured Obligations related with the Confession of Indebtedness, subject to the Share Ratio B, with the exception of amortizations as a result of an Event of Migration (“
Optional Early Amortization
”).
|
7.23.1 |
The amounts paid under Optional Early Amortization shall always be allocated proportionally to the value of the installments falling due on the Nominal Unitary Value listed in Clause 7.23 above, automatically and independently of any additional formality (including independently of any additions to this Deed of Issuance), the amortization payment dates of the Nominal Unitary Value being unchanged.
|
7.24 |
Optional Acquisition
. The Company may, at any time, acquire Debentures in Circulation, provided that (i) it observes the provisions of Article 55, paragraph 3, of Brazilian Corporation Law, Sections 13 and 15 of Securities Commission Instruction 476 and the applicable Securities Commission regulations; and (ii) the optional acquisition of the First Issuance Debentures and amortization of the Secured Obligations related with the Confession of Indebtedness, subject to the Share Ratio B. The Debentures acquired by the Company shall be canceled (“
Optional Acquisition
”).
|
7.25 |
Event of Migration
. It is hereby agreed that, in order to enable the occurrence of one or more Event of Migration as set forth in the Confession of Indebtedness Agreement, the Company may make redemptions and amortizations with respect to the First Issuance Debentures that are necessary for the Confession of Indebtedness, by means of compliance with the conditions precedent set forth in the Confession of Indebtedness Agreement, to represent the entire debit balance of the First Issue Debentures. For the purpose of clarification, any Event of Migration can only be performed by replacing the credit arising from the First Issuance Debentures object of the Event of Migration by Confession of Indebtedness, with no payment in cash or property.
|
7.26 |
Mandatory Early Amortization
. The Company is obliged to (“
Mandatory Early Amortization
”):
|
I. |
until December 26, 2017), to apply the amount in Reais equivalent to USD100,000,000.00 (one hundred million dollars) converted pursuant to Clause 7.26.1 below, to amortize (a) portion of the outstanding balance of the Secured Obligations (limited to 98% (ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the incorporation of the Remuneration occurred on December 20, 2017 until the date of the effective payment); and (b) the outstanding balance of the Secured Obligations regarding the First Issuance, observing the Amortization Ratio, without any premium or penalty;
|
II. |
until December 26, 2017), to apply the amount in Reais, converted in accordance with Clause 7.26.1 below, equivalent to all amounts received by the Company as a result of the Business Combination in excess of USD 100,000,000 (one hundred million dollars) (limited in any case to USD 200,000,000 (two hundred million dollars)) to amortize (a) portion of the outstanding balance of Secured Obligations related with the Debentures (limited to ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the effective payment date); and (b) the outstanding balance of the Secured Obligations regarding the First Issuance, at Amortization Ratio, without any premium or penalty; and
|
III. |
within three (3) Business Days as of the date of an Equity Event, to be informed by the Company and/or any Debenture Holder to the Fiduciary Agent, of the amount available to the Company or to Boulevard Cayman after deduction of transaction expenses duly evidenced and related to the Equity Event (whose transaction expenses report will be sent by the Company together with the respective vouchers, together with the communication referred to in this paragraph), including but not limited to any fees, commissions and fees paid to the financial advisors, legal advisors and auditors involved in the Equity Event, to apply the amount resulting from the formula below as calculated by the Fiduciary Agent (“
Equity Event Amortization Amount
”) to amortize (a) portion of the outstanding balance of the Secured Obligations related with the Debentures (limited to 98% (ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately previous Remuneration, as the case may be, until the date of actual payment); and (b) the outstanding balance of the Secured Obligations regarding the First Issuance, observing the Amortization Ratio, without any premium or penalty.
|
7.26.1 |
The amount of Mandatory Early Amortization calculated by the Fiduciary Agent as provided in Clause 7.25 above shall be converted into Reais (BRL) according to the PTAX Rate, sale option, disclosed on the Business Day immediately preceding the payment date of the Mandatory Early Amortization.
|
7.26.2 |
The Company shall send prior notice to the Debenture Holders (by publication of notice pursuant to Clause 7.35 below or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, the Bookeeping, the Settlement Bank and to B3, three (3) Business Days from the date of any Mandatory Early Amortization provided for in this Clause 7.25.
|
7.26.3 |
The amounts paid under Mandatory Early Amortization shall always be allocated proportionally to the value of the installments falling due on the Nominal Unitary Value listed in Clause 7.19 above, automatically and independently of any additional formality (including independently of any additions to this Deed of Issuance), the amortization payment dates of the Nominal Unitary Value being unchanged.
|
7.27 |
Bonus For Performance
. If the Company is in compliance with the Secured Obligations regarding the Debentures, the
Secured Obligations regarding the First Issuance
and the Secured Obligations related to the Confession of Indebtedness and upon payment of any amounts under Mandatory Early Amortization shall be applied on the same date of payment of the respective Mandatory Early Amortization, on the outstanding balance of the Nominal Unitary Value, after payment of the respective Mandatory Early Amortization, debt forgiveness equivalent to 25% (twenty five percent) of the total amount received by the Mandatory Debenture Holders Early Amortization (“
Bonus For Performance
”), passing the Nominal Unitary Value to reflect the debt forgiveness granted through the Bonus For Performance from the date of payment of Mandatory Early Amortization. For clarification purposes, the Bonus For Performance will be applied according to the following mechanics: (i) the Nominal Unitary Value (after Mandatory Early Amortization) will be multiplied by the number of Debentures; (ii) the value obtained in “i” above shall be reduced by the value of the Bonus For Performance; and (iii) the amount obtained in “ii”, shall be divided by the number of Debentures, with the new Nominal Unitary Value being reported. For the purposes of this Clause, the Company undertakes to present to the Fiduciary Agent a written statement that is in full compliance with the Secured Obligations regarding the Debentures, the
Restricted Offer regarding the First Issuance
and the Secured Obligations related with the Confession of Indebtedness.
|
7.28 |
Right to Receiving Payments
. There will be entitled to any amount due to the Debenture Holders under this Deed of Issuance those who are Debenture Holders at the closing of the Business Day immediately preceding to the respective date of payment.
|
7.29 |
Place of Payment
. Payments regarding Debentures and any other amounts due by the Company and/or by any of the Guarantors, under this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures, will be made (i) by the Company, relatively to payments referring to the Nominal Unitary Value, to the Remuneration and to the Delay Penalties, and relatively to the Debentures that are electronically deposited with B3, through B3; (ii) by the Company, in the remaining cases, through the Bookkeeper or at the Company’s head offices, as the case may be; or (iii) by the Guarantors, in any case, through the Bookkeeper or at the head offices/domicile of the Guarantors, as the case may be.
|
7.30 |
Extension of deadlines
. Deadlines referring to the payment of any obligation described in this Deed of Issuance will be extended until the 1
st
(first) Subsequent Business Day, if they coincide with a non-Business Day, without being due any addition to the amounts to be paid.
|
7.31 |
Delay Penalties
. If the payment of any amount due by the Company and by the Guarantors to the Debenture Holders under this Deed of Issuance should be overdue, on any and all amounts overdue, there shall accrue, additionally to the payment of Remuneration, calculated pro rata
temporis
, since the date of default until effective payment, regardless of notice, subpoena or court order, (i) interest of 1% (one percent) per month or fraction of month, calculated pro rata
temporis
, since the date of default until effective payment; and (ii) late payment penalty of 2% (two percent) (“
Delay Penalties
”).
|
7.32 |
Forfeiture of Right to Additions
. Failure of the Debenture Holder to appear to receive the amount corresponding to any Pecuniary Obligations in the dates set forth in this Deed of Issuance or in any communication made or notice published under this Deed of Issuance shall not entitle it to any addition in the period of the delay in receiving, provided, however, that the rights until the respective maturity date or payment, if payment is overdue, are maintained.
|
7.33 |
Tax Immunity
. If any Debenture Holder has immunity or exemption from taxation, it must forward to the Settling Bank or to the Bookkeeper, as the case may be, no later than 10 (ten) Business Days prior to the estimated date for the payment of amounts related to Debentures, documents that prove such immunity or exemption, or else payments will be made after withholding amounts due pursuant to tax law in force.
|
7.34 |
Early maturity
. Subject to the provisions of Clauses 7.34.1 to 7.34.6 below, the Fiduciary Agent shall declare as having matured early obligations connected with the Debentures, and demand immediate payment, by the Company and by the Guarantors, of the outstanding balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated pro rata
temporis
, since the date of Issuance or the date of payment or accrual of Remuneration immediately preceding, as the case may be, until effective payment, notwithstanding, when applicable, the Delay Penalties, if any of the events described in Clauses 7.34.1 below e 7.34.2 below (each an “
Event of Default
”) should happen.
|
7.34.1 |
There constitute Events of Default that cause the automatic maturity of the obligations connected with the Debentures, regardless of notice, subpoena, or court order, with the provisions of Clause 7.34.3 below applying:
|
I. |
default by the Company and/or by any of the Guarantors, of any Pecuniary Obligation relating to Debentures and/or under this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, on the respective date of payment (including payment of the Mandatory Early Amortization pursuant to Clause 7.25 above), not solved within 1 (one) Business Day;
|
II. |
invalidity, nullity or unenforceability of this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures;
|
III. |
liquidation, dissolution, or extinction of the Company, except if by virtue of a corporate operation that does not constitute an Event of Default, as permitted by Clause 7.34.2 below, item VI;
|
IV. |
(a) bankruptcy of the Company; (b) filing for bankruptcy by the Company; (c) bankruptcy of the Company demanded by third parties, not contested in due time; or (d) filing for judicial or extrajudicial reorganization by the Company, regardless of the response to such request;
|
V. |
conversion of the Company’s corporate type from corporation by shares to any other corporation type, as per articles 220 through 222 Brazilian Corporation Law;
|
VI. |
failure to complete the Fulfillment of the Business Combination until December 25, 2017, or its fulfillment in any other way than that of the Business Combination Agreement;
|
VII. |
early maturity of the Secured Obligations related with the Confession of Indebtedness and/or of the Restricted Offer regarding the First Issuance; or
|
VIII. |
failure to establish the Fiduciary Disposal of Shares on 100% (one hundred percent) of shares issued by the Company until July 31, 2018.
|
7.34.2 |
There constitute Events of Default that may cause the maturity of the obligations connected with the Debentures, as per Clause 7.34.4 below, any of the events set forth in the law and/or any of the following Events of Default:
|
I. |
default, by the Company and/or by any of the Guarantors, of any non-pecuniary obligation under this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, not solved within 15 (fifteen) Business Days as of the date of the respective default, and the time granted in this subsection does not apply to the obligations for which a grace period has been provided or for any of the other Events of Default;
|
II. |
failure to establish any of the Guarantees (except for Fiduciary Disposal of Shares on shares issued by the Company), pursuant to this Deed of Issuance, any of the Guarantee Agreements, in the Confession of Indebtedness Agreement and/or in the Deed of First Issuance, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation or (ii) 51% (fifty one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
III. |
assignment or any form of transfer to third parties, in whole or in part, by the Company and/or by any of the Guarantors, of any of their obligations under this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
IV. |
liquidation, dissolution, or extinction of any of the Guarantors, except if by virtue of a corporate operation that does not constitute an Event of Default, pursuant to subsection VI below;
|
V. |
(a) bankruptcy of any of the Guarantors and/or of any Controlled Company; (b) filing for bankruptcy by any of the Guarantors or by any Controlled Company; (c) bankruptcy of any of the Guarantors and/or of any Controlled Company demanded by third parties, not contested in due time; or (d) filing for judicial or extrajudicial reorganization by the Guarantors and/or any Controlled Company, as applicable, regardless of the response to such request;
|
VI. |
split, merger, acquisition (in which such company is acquired) or acquisition of shares of the Company and/or of any of the Guarantors except if (provided the conditions below do not apply to any of the goods under Surety) (a) previously authorized by Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in second calling; or (b) exclusively in case of an acquisition (in which said corporation is acquired) or the acquisition of shares of Guarantors, the resulting entity grants Surety under this Issuance Deed within 30 (thirty) days as of the connected corporate act;
|
VII. |
capital decrease of the Company, except:
|
(a) |
if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling, as per article 174, paragraph 3º, of the Brazilian Corporation Law; or
|
(b) |
if for the absorption of losses;
|
VIII. |
default, after any applicable grace periods, by the Company and/or by any of the Guarantors (however acting as guarantor), of any Financial Obligation in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM;
|
IX. |
incorrection, in any relevant aspect, or inveracity of any of the statements made by the Company and/or by any of the Guarantors in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures;
|
X. |
regarding any asset under any of the Guarantees and/or any of the rights applicable thereto, pursuant to the Guarantee Agreements, as applicable, disposal, sale, assignment, transfer, exchange, contribution, giving in payment, receivables securitization (provided that, for clarification purposes, this prohibition does not include securitization of receivables from service agreements and/or sale of the Company’s products) or any other form of transfer, including through capital reduction, or the creation of any Encumbrance (except for the Guarantees), or permission for any of the above acts to take place, in any of the cases of this Subsection, whether through payment or not, in whole or in part, directly or indirectly, even if for or in favor of a related party, except as provided for in the Guarantee Agreements;
|
XI. |
regarding Paulínia 1 Property, Paulínia 2 Property, Curitiba Property, and Guatapará Property, which are subject to Fiduciary Disposal of Real Estate and/or any of the rights applicable thereto, disturbance or nuisance not suppressed within 180 (one hundred and eighty) days as of the date of the event;
|
XII. |
(a) Boulevard Cayman ceasing to Control, direct or indirect, of the Company; or (b) change to or transfer of direct Control of any of the Controlled Companies and/or of any of the Guarantors, except, in any case, if (1) previously authorized by Debenture Holders representing, at least, (x) 60% (sixty percent) of the Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (y) 51% (fifty one percent) of the Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling; or (2) in case of change to or transfer of direct Control of any of the Guarantors and/or of any of the Controlled Companies, all shares issued by such Guarantors and/or Controlled Companies remain, indirectly, the property of the Company;
|
XIII. |
Boulevard Cayman delisting;
|
XIV. |
change to the Company’s corporate activities, representing a significant change in the core business of the Company, any of the Guarantors and/or any Controlled Company, as set forth in their articles of association or by-laws, as the case may be, in force on the Issuance Date, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
XV. |
challenge of securities against the Company and/or any of the Guarantors in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM, unless, within 10 business days of the respective occurrence (i) has been validly verified by the Company and or by Guarantora that the protest was effected by mistake or bad faith of third parties; or (ii) it is canceled, suspended or terminated by the Company and/or the respective Guarantor, the case may be, or (ii) sufficient Guarantees are provided to cover debt in court;
|
XVI. |
default, by the Company or by any Guarantor, of any final and unappealable court decision and/or of any arbitral decision not subject to an appeal, in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM, or the equivalent in foreign currency, not solved within 10 (ten) days as of the date of the respective default;
|
XVII. |
changes to the terms and conditions of the Confession of Indebtedness and/or of the First Issuance Debentures, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
XVIII. |
expropriation, confiscation, or any other act by any governmental body of any jurisdiction resulting in the loss, by the Company, by any of the Guarantors, and/or by any Controlled Company, of ownership and/or direct or indirect possession of at least 30% (thirty percent) of its assets;
|
XIX. |
distribution and/or payment, by the Company, of dividends, net equity interest, and any other profit distributions, if (a) the Company and/or any of the Guarantors have delayed fulfilling any of their obligations under this Issuance Deed and/or any other of the Debenture Guaranteed Obligation Documents; or (b) any Default Event has occurred and is continuing; except (x) for the compulsory dividends set forth in article 202 of the Brazilian Corporation Law, as per the Company’s by-laws in force on the Date of Issuance (which, if distributed to the Company, must be reinvested by the shareholders as capital increase); and (y) for dividends distributed to Boulevard Cayman, exclusively as they are necessary for its capitalization, and only in the amount necessary, (i) for payment to members of its Board of Directors, in a reasonable amount that must be disclosed to the market; and (ii) for Boulevard Cayman and Holdco maintenance costs and expenses, including those of a public company and with auditors;
|
XX. |
default, by the Company and/or by any of the Guarantors, of any obligation relating to the Confession of Indebtedness and/or set forth in the Confession of Indebtedness Agreement and/or in any of the other Documents das Secured Obligations related with the Confession of Indebtedness not solved in their respective grace periods (if applicable);
|
XXI. |
default, by the Company and/or by any of the Guarantors, of any obligation relating to First Issuance Debentures and/or set forth in the Deed of First Issuance and/or in any of the other Documents of the Restricted Offer regarding the First Issuance not solved in their respective grace periods (if applicable);
|
XXII. |
default for any time longer than 2 (two) Business Days, by the Company and/or by any of the Grantors, of any Financial Obligation, whose creditor be a Debenture Holder in possession of at least 40% (forty percent) of Debentures in Circulation or companies in the same group as such Debenture Holder; or
|
XXIII. |
failure, by the Company, to comply with any of the following financial indices (collectively, the “
Financial Indices
”), to be assessed by the Company’s administration every six months, on June 30 and on December 31 of every year, and monitored by the Fiduciary Agent until 5 (five) Business Days after the date of receipt, by the Fiduciary Agent, of the information detailed in Clause 8.1 below, subsection III, item (i), based on the Company’s Consolidated Audited Financial Statements, starting with the Company’s Consolidated Audited Financial Statements as of December 31, 2018:
|
(a) |
the quotient of the division of the Net Debt by the EBITDA must be equal to or less than the following indices, based on the Company’s Consolidated Audited Financial Statements at the end of the following reporting years:
|
Last day of the fiscal year
|
Net Debt/EBITDA index
|
December 31, 2018
|
4.0
|
December 31, 2019 onwards
|
3.5
|
(b) |
as of December 31, 2019 (inclusive), for three consecutive semesters, the quotient of the division of the Net Debt by the EBITDA must not be greater than 3.0;
|
(c) |
the ICSD index must be equal to or greater than 1.2 if the Net Debt/EBITDA index is greater than 2.8 and must be equal to or greater than 1.0 if the Net Debt/EBITDA index is equal to or less than 2.8.
|
7.34.3 |
Upon the occurrence of any of the Default Events set forth in Clause 7.34.1 above, obligations connected with the Debentures will mature automatically, regardless of notice, subpoena or court order.
|
7.34.4 |
Upon the occurrence of any of the Default Events set forth in Clause 7.34.2 above, the Fiduciary Agent must, including for the purposes of Clause 9.6, call, within 2 (two) Business Days of the date it becomes aware of the event, a general meeting of Debenture Holders, which must be held within the minimum legally permitted time. Except for the proviso of Clause 7.34.2, subsection II, above, if, at such meeting, Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in second calling, decide not to regard the Debentures as having matured early, the Fiduciary Agent must not declare the early maturity of the obligations connected with the Debentures; otherwise, or if no meeting is held in second calling, the Fiduciary Agent must immediately declare the early maturity of the obligations connected with the Debentures.
|
7.34.5 |
Upon the occurrence of the early maturity of the obligations connected with the Debentures, the Company shall be required to redeem the entirety of Debentures (the Guarantee notwithstanding), with their subsequent canceling, through the payment of the outstanding balance of the Debentures Unit Nominal Value, plus the Compensation, calculated
pro rata temporis
, since the Issuance Date or the immediately preceding payment or Compensation accrual date, as the case may be, until effective payment, notwithstanding the payment of Late Payment Penalties, whenever applicable, and any other amounts that may be due by the Company and/or by the Guarantors under this Issuance Deed and/or any of the other Debenture Guaranteed Obligation Documents, up to 3 (three) Business Days as of the early maturity date. If this requirement is not met, the Company will also be subject to Late Payment Penalties. If the payment provided for in this Clause is made in any date other than the date of declaration of the early maturity of the obligations connected with the Debentures, such payment must be made as per Clause 7.29, items (ii) and (iii) above, as applicable.
|
7.34.6 |
Upon the occurrence of the early maturity of the obligations connected with the Debentures, amounts received in payment for obligations connected with the Debentures, including those connected with the foreclosure or enforcement of any of the Guarantees, as they are received, must be applied toward the amortization or, if possible, to pay the outstanding balance of obligations connected with the Debentures. If such amounts are not enough to satisfy all such obligations, such amounts must be allocated in the following order, in such manner that, once the first tier has been paid up, the remainder is allocated to the second tier, and so forth: (i) any amounts owed by the Company and/or by any of the Guarantors under this Issuance Deed and/or any of the other Debenture Guaranteed Obligation Documents (including compensation and expenses incurred into by the Fiduciary Agent) that are not the amounts referred to in items (ii) and (iii) below; (ii) Compensation, Late Payment Penalties, and other charges due under the obligations connected with the Debentures; and (iii) outstanding balance of the Debentures Unit Nominal Value. The Company and the Guarantors shall remain liable for the outstanding balance of unpaid obligations connected with the Debentures, notwithstanding the Compensation, Late Payment Penalties, and other charges due under the obligations connected with the Debentures, as long as it is not paid, and it shall constitute an enforceable debt for extrajudicial collection or judicial enforcement.
|
7.34.7 |
Operationalization of early maturity shall follow the proceedings described in the B3 Operations Manual.
|
7.35 |
Publicity
. All acts and decisions concerning the Debentures must be communicated, under the form of notice, in the Sao Paulo State Official Gazette and in the newspaper “Gazeta de Sao Paulo,” always following the performance or the occurrence of the act to be divulged. The Company may choose another newspaper that has broad, nationwide circulation, through written notice to the Fiduciary Agent, and publication, under the form of notice, in the newspaper being replaced.
|
8. |
Additional Obligations of the Company and the Guarantors
|
8.1 |
The Company and the Guarantors are jointly obliged to:
|
I. |
exclusively regarding the Company, make available on its website and supply to the Fiduciary Agent:
|
(i) |
on the first date between 3 (three) months after the end of each fiscal year or their effective publication date, copy of the Company’s consolidated financial statements, audited by the Indepedent Auditor, relating to the relevant fiscal year, prepared in accordance with the Brazilian Corporations Act and pursuant to the rules issued by the CVM (the “Company’s Consolidated Audited Financial Statements”); and
|
(ii) |
on the first date between 45 (forty-five) days after the end of each of its fiscal quarters (except for its last fiscal quarter) and their effective publication date, copy of the Company’s consolidated financial statements with limited review by the Independent Auditor, relating to the first quarter, prepared in accordance with the Brazilian Corporations Act and pursuant to the rules issued by the CVM (the “
Company’s Consolidated Reviewed Financial Statements
,” being the Company’s Consolidated Audited Financial Statements and the Company’s Consolidated Reviewed Financial Statements referred to jointly as the “
Company’s Consolidated Financial Statements
”);
|
II. |
exclusively with regard to the Guarantors, supply to the Fiduciary Agent, on the first date between 3 (three) months after the end of each of its fiscal year and their effective publication date, copy of the Guarantors’ consolidated financial statements, relating to to the relevant fiscal year, prepared in accordance with the Brazilian Corporation Law and pursuant to the rules issued by the Securities Commission (the “
Guarantors’ Consolidated Financial Statements
”);
|
III. |
supply to the Fiduciary Agent:
|
(i) |
exclusively regarding the Company, up to 5 (five) Business Days after the dates on subsection I above, items (i) and (ii), specific appraisal report of the Financial Indices, prepared by the Company’s administration, containing a spreadsheet with all the necessary data to support the calculation of the Financial Indices, or else the Fiduciary Agent would be unable to monitor the Financial Indices, provided that the latter may demand from the Company any additional information it may deem relevant, as well as additional documents that prove the assessment and the calculation of such indices—which must be produced by the Company within 10 (ten) Business Days of such request;
|
(ii) |
exclusively regarding the Company, up to 5 (five) Business Days after the dates on subsection I above, items (i) and (ii), affidavit signed by the Company’s legal representatives, as per its by-laws, attesting (i) the truthfulness and the lack of errors of the Financial Indices; (ii) that all provisions in this Deed of Issuance and in all other Documents of the Secured Obligations regarding the Debentures remain in force; (iii) the complete lack of any Event of Default and the lack of default of any obligation provided for in this Deed of Issuance and in all other Documents of the Secured Obligations; (iv) that its assets remain duly insured; and (v) that no actions contrary to its by-laws have been taken;
|
(iii) |
exclusively regarding the Guarantors, within until 5 (five) Business Days after the dates on subsection II above
,
affidavit signed by the Guarantors’ legal representatives, as per their by-laws, attesting (i) that all provisions in this Deed of Issuance and in all other Documents of the Secured Obligations regarding the Debentures remain in force; (ii) the complete lack of any Event of Default and the lack of default of any obligation provided for in this Deed of Issuance and in all other Documents of the Secured Obligations; (iii) that its assets remain duly insured; and (iv) that no actions contrary to its by-laws have been taken;
|
(iv) |
exclusively regarding the Company, within until 30 (thirty) days before the deadline for filing, with CVM, the annual report of the Fiduciary Agent, as per CVM Instruction 583, financial information, and organizational chart of the Company’s group (which shall contain all its Affiliates and members of the Control group at the end of each fiscal year) and other information necessary for the preparation of the reports that may be requested in writing by the Fiduciary Agent;
|
(v) |
within until 2 (two) Business Days as of the date in which they are made, notices to the Debenture Holders;
|
(vi) |
within until 2 (two) Business Days as of the date of occurrence, information on (i) any default, by the Company and/or by any of the Guarantors, of any obligation described in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures; and/or (ii) of any Event of Default;
|
(vii) |
within until 2 (two) Business Days as of the notification date, information on any event or situation that may cause a Relevant Adverse Effect in the Company, in any of the Guarantors and/or in any Controlled Company;
|
(viii) |
within until 5 (five) Business Days as of the date de receipt of the respective request, information and/or documents that may be requested by the Fiduciary Agent;
|
(ix) |
within until 5 (five) Business Days as of the date:
|
(i) |
of the respective enrollment in JUCESP, (1) one original of this Deed of Issuance or of the respective amendment to this Deed of Issuance duly enrolled in JUCESP; and
|
(ii) |
of the respective registration or amendment before notaries referred to in Clause 3.1 above, subsection II, item (ii), one original of this Deed of Issuance or of the respective amendment to this Deed of Issuance registered or amended before such notaries;
|
(x) |
until January 30, 2018 originals, or certified copies of the documents listed on Annex II to this Deed of Issuance;
|
(xi) |
power of attorney substantially in the form of Anexo III to this Deed of Issuance, valid for 1 (one) year as of the present date, with the commitment of renewing it yearly no less than 3 (three) months as of the respective expiration date, until clearance of all Secured Obligations, granting powers for the Fiduciary Agent and other parties to rectify any issues stemming from an Event of Default, at the expense of the Company, as per Annex II, if any pending matters have not yet been taken care of by the Company;
|
IV. |
meet, and have Controlled Companies meet, laws, regulations, administrative rules and orders by governmental bodies or courts applicable to their activities, except for those whose applicability is questioned in good faith administratively and/or judicially or whose non-compliance cannot cause a Relevant Adverse Effect;
|
V. |
meet, and have its Controllers, Controlled Companies, sister companies, companies under common Control, employees and subcontractors meet, the Anticorruption Law, as well as (a) maintain policies and internal procedures aimed at the publication and the integral compliance with the Anticorruption Law; (b) make the Anticorruption Law plainly clear to all professionals with which it enters into a relationship, prior to the commencement of the relationship; (c) abstain from practicing acts of corruption and acting in any way that is harmful to the public administration, national or foreign, in its own interest or for the benefit of third parties, exclusively or not; and (d) within until 2 (two) Business Days as of the notification date, communicate the Debenture Holders and the Fiduciary Agent of any act or fact that violates the Anticorruption Law;
|
VI. |
maintain, as well as Controlled Companies, timely payment of all tax obligations (local, state, and federal), as well as labor, social security, environmental, and any other obligations imposed by law, except for those whose applicability is questioned in good faith administratively and/or judicially or whose non-compliance cannot cause a Relevant Adverse Effect;
|
VII. |
maintain, and make Controlled Companies maintain, always valid, effective, and in perfect order, all licenses, authorizations, permissions and approvals, including environmental, applicable to their activities, except for those whose absence cannot cause a Relevant Adverse Effect;
|
VIII. |
maintain, and make Controlled Companies maintain, adequate insurance for its relevant goods and assets, per usual market practices;
|
IX. |
maintain in perfect order, all licenses, authorizations, permissions and approvals, needed for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of all obligations hereunder and thereunder;
|
X. |
hire and maintain, at its expenses, service providers necessary for the fulfillment of the obligations described in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures, including the Fiduciary Agent, the Bookkeeper, the Settling Bank, the Independent Auditor, the distribution environment of the Debentures in the primary market (MDA) and the dealing environment of the Debentures in the secondary market (CETIP21);
|
XI. |
pay all taxes on the Debentures that are the responsibility of the Company and, if applicable, of the Guarantors;
|
XII. |
make (a) the payment of the Remuneration of the Fiduciary Agent, pursuant to Clause 9.4 below, subsection I; and (b) if so requested by the Fiduciary Agent, payment of expenses duly reported by the Fiduciary Agent, pursuant to Clause 9.4 below, subsection II;
|
XIII. |
notify, on the same date, the Fiduciary Agent of the issuance of invitation, by the Company, of any Debenture Holders’ general meeting;
|
XIV. |
call, within until 2 (two) Business Days, Debenture Holders’ general meeting to discuss any of the topics that may interest the Debenture Holders, if the Fiduciary Agent should do it, pursuant to the law and/or this Deed of Issuance, but fails to do so in the relevant time;
|
XV. |
appear, through its representatives, at the Debenture Holders’ general meeting, whenever invited;
|
XVI. |
maintain equal treatment and
pari passu
between the Confession of Indebtedness, the First Issuance Debentures and the Debentures, including (but not limited to) (i) except in case of (a) payments as Mandatory Early Amortization, which must observe the Amortization Proportion, and (b) amortizations or redemptions stemming from a Migration Event, carry out any payments of the Secured Obligations related with the Confession of Indebtedness, of the Restricted Offer regarding the First Issuance and of the Secured Obligations regarding the Debentures, by the following proportion: (a) 45.6% (forty-five point six percent percent) for Secured Obligations regarding the Debentures; and (b) 54.4% (fifty-four point four percent) for Secured Obligations related with the Confession of Indebtedness e Restricted Offer regarding the First Issuance (keeping the proportion between the Secured Obligations related with the Confession of Indebtedness and the Restricted Offer regarding the First Issuance); and (ii) supply the same information and in the same time; and
|
XVII. |
exclusively regarding the Company, notwithstanding the other obligations set forth above or other obligations expressly provided for in the regulations in force and in this Deed of Issuance, pursuant to article 17 of CVM Instruction 476:
|
(i) |
(a) maintain shares issued by the Company or by na Affiliate listed in organized markets in Brazil or abroad; and (b) meet all CVM requirements to maintain shares as listed with the relevant registrations before CVM;
|
(ii) |
prepare the Company’s consolidated financial statements relating to each fiscal year, in compliance with the Brazilian Corporation Law and with CVM’s regulations;
|
(iii) |
submit the Company’s consolidated financial statements relating to each fiscal year to independent auditor registered with the CVM;
|
(iv) |
within 3 (three) months as of the date of closure of its fiscal year, divulge on its website and send to B3 the Company’s consolidated financial statements relating to each fiscal year, along with explanatory notes and independent auditors’ report;
|
(v) |
for 3 (three) years as of the respective date of publication, maintain documents mentioned on item (iv) above on its website;
|
(vi) |
follow the rules of CVM Instruction 358, relatively to the duty of confidentiality and insider trading prohibitions;
|
(vii) |
disclose, in its website, the occurrence of any relevant act or fact, as defined on article 2 of CVM Instruction 358, communicating immediately to the Fiduciary Agent, to the Leading Coordinator and to B3;
|
(viii) |
supply all information requested by CVM and by B3;
|
(ix) |
disclose, in its website, the annual report and other communications sent by the Fiduciary Agent on the same date of their receipt, meeting the requirements of item (v) above.
|
9. |
Fiduciary Agent
|
9.1 |
The Company shall appoint and constitute the Fiduciary Agent of the Issue the Fiduciary Agent, qualified in the preamble to this Deed of Issuance, which it signs in that capacity and, in this act and in the best form of law, accepts the appointment to, under the terms of the law and this Deed of Issuance, to represent the fellowship of the Debenture Holders, stating that:
|
I. |
is a Financial Institution duly organized, constituted and existing in the form of a corporation, in accordance with Brazilian laws;
|
II. |
is duly authorized and has obtained all the authorizations, including those applicable, legal, corporate, regulatory and third party, necessary for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of all obligations here provided, and all legal, corporate, regulatory and third-party requirements demanded;
|
III. |
the legal representative(s) of the Fiduciary Agent who signs this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures have, as the case may be, corporate powers and/or delegates to assume, on behalf of the Fiduciary Agent, the obligations here and there provided and, being authorized, have (have) the legitimately granted powers, being the respective mandate(s) in full force;
|
IV. |
this Deed of Issuance and the other Documents of the Secured Obligations in relation to the Debentures and the here and there provided for obligations constitute licit, valid, binding and effective obligations of the Fiduciary Agent, enforceable in accordance with its terms and conditions;
|
V. |
The execution, the terms and conditions of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of the obligations here and there provided for (a) do not violate the Fiduciary Agent’s bylaws; (b) does not infringe any agreement or instrument to which the Fiduciary Agent is a party and/or for which any of its assets is subject; (c) does not infringe any legal or regulatory provision upon which the Fiduciary Agent and/or any of its assets is subject; and (d) does not infringe any administrative, judicial or arbitral order, decision or judgment affecting the Fiduciary Agent and/or any of its assets;
|
VI. |
accepts the function for which it was appointed, fully assuming the duties and attributions provided for in the specific legislation and in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures;
|
VII. |
is fully aware of and accepts this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures and all its terms and conditions;
|
VIII. |
verified the veracity of the information contained in this Deed of Issuance and in the other Documents of the Secured Obligations to the Debentures, based on information provided by the Company and by the Guarantors, being certain that the Fiduciary Agent has not conducted any independent or additional verification procedure the veracity of the information presented;
|
IX. |
is aware of the applicable regulations arising from the Central Bank of Brazil and CVM;
|
X. |
does not have, under the penalties of law, any legal impediment, pursuant to article 66, paragraph 3, of Brazilian Corporation Law, CVM Instruction 583 and other applicable rules, to perform the function conferred upon it;
|
XI. |
is not in any of the situations of conflict of interest foreseen in Article 6 of CVM Instruction 583;
|
XII. |
on the date of execution of this Deed of Issuance, according to the organization chart sent by the Company, the Fiduciary Agent has identified that it provides services of Fiduciary Agent, notes agent or collateral agent on the 1st (First) Issuance of Simple, Non-Convertible Debentures of Unsecured Species, with Additional Royal and Fiduciary Guarantees, in a Single Series, for Public Distribution with Restricted Efforts, of the Logística Ambiental de São Paulo S.A. - Loga, maturing on May 15, 2020, in which 50 (fifty) Debentures were issued, in R $ 50,000,000.00 (fifty million Reais), in which Company renders Surety, and there has been no default up to the present date; and
|
XIII. |
in view of the provisions of item XII above, shall ensure fair treatment of all Debenture Holders and all holders of securities in which it acts as a Fiduciary Agent, notes agent or collateral agent, in compliance with the guarantees, obligations and rights attributed to the respective holders of securities of each issue or series.
|
9.2 |
The Fiduciary Agent shall exercise its functions as from the date of execution of this Deed of Issuance or of any amendment relating thereto, and shall remain in the exercise of its functions until the full discharge of all obligations under this Deed of Issuance and of the other Documents of the Secured Obligations against the Debentures, or until their replacement.
|
9.3 |
In the event of absence, impediment, resignation, removal, intervention, judicial or extrajudicial liquidation, bankruptcy, or any other case of vacancy of the Fiduciary Agent, the following rules:
|
I. |
the Debenture Holders may substitute the Fiduciary Agent and appoint their substitute at any time after the close of the Offer, at a general meeting of Debenture Holders specially convened for such purpose;
|
II. |
if the Fiduciary Agent cannot continue to perform its functions due to circumstances beyond this Deed of Issuance, it shall immediately notify the Company and the Debenture Holders by calling a general meeting of Debenture Holders, requesting its replacement;
|
III. |
if the Fiduciary Agent relinquishes its functions, it shall remain in office until a substitute institution is appointed by the Company and approved by the general meeting of Debenture Holders and effectively assumes its functions;
|
IV. |
30 (thirty) days from the date of the event which determines the Debenture Holders’ General Meeting, shall be held for the choice of the new Fiduciary Agent, which shall be called by the Fiduciary Agent itself to be replaced, and may be called by Debenture Holders representing at least 10% (ten percent) of the Debentures in Circulation; in the event that the call is not made within fifteen (15) days before the expiration of the term herein, it shall be incumbent upon the Company to do so; in exceptional cases, the CVM may call the general meeting of Debenture Holders to choose the new Fiduciary Agent or appoint a provisional substitute;
|
V. |
The replacement of the Fiduciary Agent shall be informed to CVM within up to seven (7) Business Days counted from the date of registration of the amendment to this Deed of Issuance pursuant to Clause 3.1 above, item II, together with the other information required in article 5, caput and paragraph 1, of CVM Instruction 583;
|
VI. |
the payments to the replaced Fiduciary Agent will be realized observing the proportionality to the period of the effective provision of the services;
|
VII. |
the substitute Fiduciary Agent shall be entitled to the same Remuneration as the former if (a) Company has not agreed to the new Remuneration value of the Fiduciary Agent proposed by the general meeting of Debenture Holders referred to in item IV above; or (b) the Debenture Holders’ General Meeting referred to in item IV above does not deliberate on the matter;
|
VIII. |
the substitute Fiduciary Agent shall, immediately upon its appointment, communicate this fact to the Company and to the Debenture Holders pursuant to Clauses 7.35 and 13 below; and
|
IX. |
the norms and precepts emanating from CVM apply to the Fiduciary Agent’s replacement hypothesis.
|
9.4 |
For the performance of the duties and powers incumbent upon it, under the terms of the law and of this Deed of Issuance, the Fiduciary Agent, or the institution that replaces it as such:
|
I. |
will receive a Remuneration:
|
(i) |
BRL 10,000.00 (ten thousand reais) per year, payable by the Company (Notwithstanding of Surety), being the first installment of Remuneration due on the 5
th
(fifth) Business Day from the date of execution of this Deed of Issuance, and the remainder on the same day of the subsequent years until the issue date, or while the Fiduciary Agent represents the interests of the Debenture Holders;
|
(ii) |
readjusted annually, from the date of payment of the first installment, by the cumulative variation of the IGPM or the index that may replace it, calculated
pro rata temporis
, if necessary;
|
(iii) |
plus the Tax on Services of any Nature - ISSQN, Contribution to the Social Integration Program - PIS, Social Contribution on Net Income - CSLL, Contribution to Social Security Financing - COFINS and any other taxes and expenses that may be levied on the Remuneration due to the Fiduciary Agent, at the rates in force on the dates of each payment, except for Income Tax and Proceeds of any Nature - IR;
|
(iv) |
due to maturity, redemption or cancellation of the Debentures and even after its expiration, redemption or cancellation in the event of the Fiduciary Agent’s action in the collection of eventual non-default debentures by the Company and/or by the Guarantors, cases in which the Remuneration due to the Fiduciary Agent will be calculated in proportion to the Fiduciary Agent’s performance months, based on the amount of item (i) above, readjusted according to item (ii) above;
|
(v) |
in the event of default in payment, regardless of notice, notice or judicial or extrajudicial filing, on arrears, of (i) default interest of 1% (per cent) per month calculated pro rata temporis, from the date of default until the effective payment date; (ii) an irredeemable non-compensatory fine of 2% (two percent); and (iii) monetary restatement by the IGPM, calculated
pro rata temporis
, from the date of default until the effective payment date; and
|
(vi) |
shall be made by deposit in the current account to be indicated in writing by the Fiduciary Agent to the Company, serving the proof of deposit as proof of payment discharge;
|
II. |
will be reimbursed by the Company (Notwithstanding of Surety) for all expenses that it proves to incur to protect the rights and interests of Debenture Holders or to realize their credits, within up to 10 (ten) days from the date of delivery of a copy of the supporting documents in this provided that the expenses have been previously approved by the Company, which shall be deemed approved if Company does not manifest within 5 Business Days as of the date of receipt of the respective request by the Fiduciary Agent, including expenses with:
|
(i) |
publication of reports, convening notices, notices, notices and so forth, as provided in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures, and others as may be required by applicable regulations;
|
(ii) |
extraction of certificates;
|
(iii) |
the notary public expenses;
|
(iv) |
transportation, travel, food and lodging, when necessary for the performance of their duties under this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures;
|
(v) |
expenses for photocopying, scanning and sending documents;
|
(vi) |
expenses with telephone contacts and conference calls;
|
(vii) |
expenses with specialists, such as auditing and inspection; and
|
(viii) |
hiring legal counsel to the Debenture Holders.
|
III. |
may, in the event of default by Company and/or Guarantors in paying the expenses referred to in items I and II above for a period exceeding 30 (thirty) days, request to the Debenture Holders advance payment for reasonable expenses with legal, judicial or administrative procedures that the Fiduciary Agent may incur to safeguard the interests of Debenture Holders, which shall be, whenever possible, previously approved and advanced by Debenture Holders, in proportion to their credits, and subsequently reimbursed Notwithstanding, the expenses to be advanced by Debenture Holders in proportion to their claims include expenses with third party attorneys’ fees, deposits, costs and court fees in the actions proposed by the Fiduciary Agent or arising out of against him in the exercise of his office, or even s or financial risks, as a representative of the Debenture Holders community; any expenses, deposits and legal costs arising from legal proceedings shall also be borne by the Debenture Holders as well as their Remuneration, and the Fiduciary Agent may request a guarantee from Debenture Holders to cover the risk of default; and
|
IV. |
the Fiduciary Agent’s credit for expenses incurred to protect rights and interests or to realize credits from Debenture Holders that has not been settled as provided for in item III above shall be added to the debt of Company and Guarantors, taking precedence over this in the payment order.
|
9.5 |
In addition to others provided by law, in the regulations of the CVM and in this Deed of Issuance, they constitute duties and attributions of the Fiduciary Agent:
|
I. |
exercise its activities in good faith, transparency and loyalty to Debenture Holders;
|
II. |
protect the rights and interests of Debenture Holders by employing in the exercise of their function the care and diligence with which every active man applies in the administration of his own possessions;
|
III. |
resign in the event of a conflict of interest or any other modality of disability and immediately convene the general meeting of Debenture Holders provided for in article 7 of CVM Instruction 583 to resolve on its replacement;
|
IV. |
keep in good custody all documentation relating to the performance of their duties;
|
V. |
to verify, at the moment of accepting the function, the truthfulness of the information contained in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures, endeavoring to heal any omissions, faults or defects of which it is aware;
|
VI. |
to file with the Company for this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures and their additions to be entered, recorded and/or annotated, as the case may be, under the terms of this Deed and the respective Documents of the Secured Obligations the Debentures, adopting, in the case of Company’s omission, any measures contemplated by law;
|
VII. |
monitor the provision of periodic information by the Company and to alert Debenture Holders, in the annual report referred to in item XX below, of any inconsistencies or omissions of which it is aware;
|
VIII. |
to opine on the sufficiency of the information provided in the proposed changes to the conditions of the Debentures;
|
IX. |
to verify the regularity of the constitution of the Guarantees and the values of the assets given as collateral, observing the maintenance of their sufficiency and feasibility, under this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures;
|
X. |
to examine a proposal for replacement of the assets pledged, expressing its opinion on the matter in a justified manner, after approval by the Debenture Holders, meeting in the general meeting of Debenture Holders;
|
XI. |
to notice Company, Guarantors or any third-party grantor, as the case may be, to enforce the Collateral, in the event of its deterioration or depreciation, under this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures;
|
XII. |
request, when it deems it necessary, for the faithful performance of their duties, up-to-date certificates from the Company of any Guarantors, civil distributors, Public Treasury courts, protest notices, labor courts, and the Office of the Treasury Attorney The place where any of the goods covered by the Guarantees is located, the domicile or headquarters of the Company, of any Guarantors and/or third-party grantor;
|
XIII. |
request, when it deems it necessary, an external audit of Company;
|
XIV. |
call, when necessary, the Debenture Holders’ General Meeting pursuant to Clause 10.3 below;
|
XV. |
to attend Debenture Holders’ General Meeting in order to provide the information requested;
|
XVI. |
to maintain updated the relationship of the Debenture Holders and their addresses, including, but not limited to, the Company, the Bookkeeper, the Settlement Bank and the B3, and for the purpose of complying with this subsection, Company and Debenture Holders, as well as which subscribe and pay into or acquire the Debentures, expressly authorize the Bookkeeper, the Settlement Bank and the B3 to attend to any requests made by the Fiduciary Agent, including the disclosure, at any time, of the position of Debentures, and their respective Debenture Holders;
|
XVII. |
coordinate the lottery of the Debentures to be redeemed in the cases provided for in this Deed of Issuance, if applicable;
|
XVIII. |
to oversee compliance with the Clauses contained in this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures, including (a) those of imposing obligations of doing and not doing; and (b) that relating to compliance with the Financial Ratios;
|
XIX. |
communicate to the Debenture Holders any default, by the Company or by any of the Guarantors, of financial obligations assumed in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, including obligations relating to Guarantees and Clauses contractual obligations designed to protect the interest of Debenture Holders and which establish conditions not to be disregarded by the Company and/or by any of the Guarantors, stating the consequences for Debenture Holders and the steps they intend to take on the matter, within 7 (seven) Business Days counted from the date of the science, by the Fiduciary Agent, of the default;
|
XX. |
within four (4) months from the end of the Company’s fiscal year, to disclose on its website and to send to the Company for disclosure in the manner specified in the specific regulation, annual report to the Debenture Holders pursuant to Article 68, paragraph 1 (b) of Brazilian Corporation Law, describing the relevant facts that occurred during the year related to the Debentures, according to the minimum content established in Exhibit 15 to CVM Instruction 583;
|
XXI. |
maintain the annual report referred to in item XX above available for public consultation on its website for a period of three (3) years;
|
XXII. |
keep available on your Internet page updated list of issues in which you perform the function of Fiduciary Agent, notes agent or collateral agent;
|
XXIII. |
to disclose on its website the information provided for in article 16 of CVM Instruction 583 and to keep it available for public consultation on its website for a period of three (3) years; and
|
XXIV. |
disclose to the Debenture Holders and other market participants, on its web page and/or in its call center, on each Business Day, the outstanding unit balance of the Debentures, calculated by the Company in conjunction with the Fiduciary Agent.
|
9.6 |
In the case of default by the Company and/or by any of the Guarantors, any of its obligations described in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, shall the Fiduciary Agent Obligations to protect rights or defend interests of Debenture Holders, under the terms of article 68, paragraph 3, of the Brazilian Securities and Exchange Commission. Brazilian Corporation Law and article 12 of CVM Instruction 583, including:
|
I. |
declare, subject to the conditions of this Deed of Issuance, in advance overdue the obligations connected with the Debentures, and charge its principal and accessories;
|
II. |
subject to the provisions of this Deed of Issuance and of the other Documents of the Secured Obligations concerning the Debentures, to execute the Guarantees, applying the proceeds in full or proportional payment to the Debenture Holders;
|
III. |
the request of bankruptcy of Company and Guarantors if there are no real guarantees;
|
IV. |
take any other necessary measurements in order that the Debenture Holders make their credits; and
|
V. |
represent the Debenture Holders in bankruptcy, judicial recovery, extrajudicial recovery or, if applicable, extrajudicial intervention or liquidation of the Company and/or of any of the Guarantors.
|
9.7 |
The Fiduciary Agent may be based on information made available to it by the Company and/or by any of the Guarantors to monitor compliance with the Financial Ratios.
|
9.8 |
The Fiduciary Agent shall not be required to perform any veracity verification of any document or record which it considers to be authentic and has been forwarded to it by the Company or a third party at its request to rely on its decisions and shall not be responsible for the preparation which shall remain under the legal and regulatory obligation of the Company to draw up such documents, in accordance with the applicable legislation.
|
9.9 |
The Fiduciary Agent will not issue any type of opinion or make any judgment regarding guidance on any fact of the Issue that is in the definition by the Debenture Holders pursuant to Clause 10 below, only being obliged to act in in accordance with the instructions given to it by the Debenture Holders, pursuant to Clause 10 below, and in accordance with the attributions conferred by law, Clause 9.5 above and the other provisions of this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures. Accordingly, the Fiduciary Agent has no liability whatsoever for the outcome or legal effects arising from strict compliance with the guidelines of the Debenture Holders transmitted to it as defined by the Debenture Holders pursuant to Clause 10 below and reproduced by The Company and the Guarantors.
|
9.10 |
The actions of the Fiduciary Agent are limited to the scope of CVM Instruction 583, applicable articles of the Brazilian Corporation Law, this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures, the Fiduciary Agent being exempt in any form or pretext, of any additional liability not arising from the applicable legal and regulatory provisions of this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures.
|
10. |
Debenture Holders’ General Meeting
|
10.1 |
Debenture Holders may at any time hold a general meeting in accordance with Article 71 of Brazilian Corporation Law, in order to resolve matters of interest to the Debenture Holders.
|
10.2 |
General meetings of Debenture Holders may be called by the Fiduciary Agent, by the Company, by Debenture Holders representing at least 10% (ten percent) of the Debentures in Circulation, or by the CVM.
|
10.3 |
The convening of general meetings of Debenture Holders, as the case may be, shall be done by means of a notice published at least three (3) times under Clause 7.35 above, in compliance with other rules related to the publication of a notice convening general meetings of the Brazilian Corporation Law, of the applicable regulations and of this Deed of Issuance, being exempted the call in the case of the presence of all the Debenture Holders.
|
10.4 |
General meetings of Debenture Holders shall be convened, on first call, with holders of at least half of the Debentures in Circulation, and, on second call, with any quorum.
|
10.5 |
The general meetings of Debenture Holders shall be held by the Debenture Holder elected by them or by the one appointed by the CVM.
|
10.6 |
In the deliberations of the general meetings of Debenture Holders, each of the Debentures in Circulation shall be entitled to vote, admitted to be a representative, Debenture holder or not. Except as provided in Clause 10.6.1 below, all resolutions to be taken at the general meeting of Debenture Holders will depend on the approval of Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling.
|
10.6.1 |
Are not included in the quorum referred to in Clause 10.6 above:
|
I. |
quorums expressly provided for in other Clauses of this Deed of Issuance; and
|
II. |
the amendments, which shall be approved by Debenture Holders representing at least 90% (ninety percent) of the Debentures in Circulation, (a) of the provisions of this Clause; (b) of any of the quorums provided in this Deed of Issuance; (c) of Remuneration, except as provided in Clause 7.20.4 above; (d) of any payment dates of any amounts provided in this Deed of Issuance; (e) of the term of the Debentures; (f) of the species of the Debentures; (g) of any of the Guarantees; (h) the creation of renegotiation event; (i) the provisions relating to Redemption Early Optional; (j) the provisions relating to Optional Early Amortization; (k) of the provisions relating to Compulsory Early Amortization; (l) of the provisions relating to the Bonus for Performance; (m) of the creation of optional redemption offer event; or (n) of any Event of Default writing.
|
10.6.2 |
The temporary waiver or remission of an Event of Default shall be approved in accordance with Clause 10.6 above.
|
10.7 |
Decisions taken by Debenture Holders within their legal competence, subject to the quorums provided in this Deed of Issuance, shall be valid and effective before Company and shall bind all Debenture Holders irrespective of their attendance or vote at the respective Debenture general meeting Holders.
|
10.8 |
The holding of a general meeting of Debenture Holders is now waived to resolve on (i) correction of gross, typing or arithmetical error; (ii) amendments to this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures already expressly permitted under this Deed of Issuance and/or of the other Documents of the Secured Obligations regarding the Debentures; (iii) amendments to this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures as a result of requirements formulated by CVM, B3 or ANBIMA; or (iv) amendments to this Deed of Issuance and/or any of the other Obligations relating to the Debentures as a result of the updating of the registration data of the Parties, such as change in name, address and telephone, provided that the changes or corrections referred to in items (i), (ii), (iii) and (iv) above can not cause any impairment to the Debenture Holders and/or Company or any change in the flow of the Debentures, and that there is no additional cost or expense for Debenture Holders.
|
10.9 |
The Fiduciary Agent shall attend the general meetings of Debenture Holders and provide to the Debenture Holders such information as may be requested.
|
10.10 |
The provisions of the Brazilian Corporation Law on the general meeting of shareholders shall be applied to the general meetings of Debenture Holders, as applicable.
|
11. |
Representation of the Company And Guarantors
|
11.1 |
The Company and the Guarantors, on the Issue Date and on each Payment Date, jointly represent that:
|
I. |
The Company is a company duly organized, incorporated and existing in the form of a corporation, according to Brazilian laws, without registration of issuer of securities before the CVM, and each of the Guarantors is a company duly organized, constituted and existing company in the form of a corporation or limited company in accordance with Brazilian laws;
|
II. |
are duly authorized and have obtained all the authorizations, including those applicable, legal, corporate, regulatory and third party, necessary for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and to the fulfillment of all the obligations here provided and to the execution of the Issue and Offer, and all legal, corporate, regulatory and third-party requirements necessary to;
|
III. |
the legal representatives of Company and Guarantors who sign this Deed of Issuance and the other Documents of the Securities Obligations regarding the Debentures have, as the case may be, corporate powers and/or delegates to assume, on behalf of the Company and/or the respective Guarantor, as the case may be, the obligations here and there provided and, being delegates, have the legitimately granted powers, and their respective mandates are in full force;
|
IV. |
this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures and the obligations hereunder provided herein are legally binding, valid, binding and effective obligations of Company and Guarantors, enforceable in accordance with its terms and conditions;
|
V. |
Except as provided in Clause 3 above, no approval, authorization, consent, order, registration or authorization of or before any judicial body, governmental agency or agency or regulatory body is necessary for the execution and enforcement of this Deed of Issuance and of the other Documents of the Secured Obligations concerning the Debentures and the Issuance and Offering;
|
VI. |
the execution, the terms and conditions of this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of the here and there obligations and the performance of the Issue and the Offer (a) do not violate Company’s by-laws or the by-laws or the social contract of any of the Guarantors; (b) does not infringe any contract or instrument of which the Company and/or any of the Guarantors is a party and/or for which any of its assets are subject; (c) shall not result in (i) early maturity of any obligation established in any contract or instrument of which the Company and/or any of the Guarantors is a party and/or for which any of its assets are subject; or (ii) termination of any such contracts or instruments; (d) shall not result in the creation of any Loan over any assets of the Company and/or any of the Guarantors, except for the Warranties; (e) does not infringe any legal or regulatory provision to which the Company and/or any Guarantors and/or any of its assets is subject; and (f) does not infringe any order, decision or administrative, judicial or arbitral award affecting Company and/or any Guarantors and/or any of its assets;
|
VII. |
are in compliance with the obligations contained in this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures, and did not occur and does not exist on this date, any Event of Default;
|
VIII. |
are fully aware and fully agree with the manner of disclosure and determination of the DI Rate and the method of calculating the Remuneration has been freely agreed upon by Company and Guarantors in accordance with the principle of good faith;
|
IX. |
the information provided at the time of the Offering is true, consistent, accurate, complete, correct and sufficient, allowing investors to make a reasoned decision regarding the Offer;
|
X. |
the opinions, analyzes and forecasts (if any) expressed have been made in good faith, having regard to all relevant circumstances in the context of the Offer and based on reasonable assumptions;
|
XI. |
the documents and information provided to the Fiduciary Agent and/or potential Prospective Investors are true, consistent, accurate, complete, correct and sufficient, and they are updated until the date they were provided and include documents and information relevant to the decision making process related to investment in Debentures;
|
XII. |
Company’s Consolidated Financial Statements for the fiscal years ended December 31, 2014, 2015 and 2016 correctly represent Company’s consolidated financial position on those dates and for those periods and were duly prepared in accordance with the Brazilian Corporation Law and with the rules issued by the CVM;
|
XIII. |
are, as well as the Controlled Companies, complying with the laws, regulations, administrative norms and determinations of the governmental organs, autarchies or judicial instances applicable to the exercise of its activities, except for those questioned in good faith in the administrative and/or judicial spheres;
|
XIV. |
are, as well as the Controlled Companies, up-to-date with the payment of all taxes (municipal, state and federal), labor, social security, environmental and any other obligations imposed by law, except for those questioned in good faith in the administrative and/or judicial spheres or whose non-compliance may not cause a Material Adverse Effect;
|
XV. |
have, as well as the Controlled Companies, valid, effective, in perfect order and in full force all licenses, concessions, authorizations, permits and permits, including environmental, applicable to the exercise of their activities, except for those whose absence cannot cause a Material Adverse Effect;
|
XVI. |
comply and cause to comply, as well as their Affiliates, employees and any subcontractors, the Anti-Corruption Legislation, insofar as they (a) maintain internal policies and procedures aimed at the dissemination and full compliance with Anti-Corruption Legislation; (b) give full knowledge of the Anti-Corruption Legislation to all the professionals with whom they come to relate, prior to the beginning of their action; (c) refrain from engaging in acts of corruption and injuring the public administration, national and foreign, in their interest or for their benefit, whether exclusive or not; and (d) communicate the Debenture Holders (through the publication of notice pursuant to Clause 7.35 above or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent) and the Fiduciary Agent if they are aware of any act or fact which violates Anti-Corruption Legislation;
|
XVII. |
not exist, including in relation to the Controlled Companies, (a) noncompliance with any contractual provision, legal or of any judicial, administrative or arbitral order; or (b) any judicial, administrative or arbitral proceedings, investigations or any other governmental investigation, in any of the cases in this subsection, (i) that may cause a Material Adverse Effect; or (ii) in order to annul, alter, invalidate, question or otherwise affect this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures;
|
XVIII. |
there is no link between the Company or any of the Guarantors and the Fiduciary Agent that prevents the Fiduciary Agent from fully exercising its functions;
|
XIX. |
Company owns the acquisition rights and the legitimate owner (i) of Itapevi Property 1, Property Itapevi 2, registration number 2150 of Property Tremembé 2, Property Paulínia 2, which are currently registered on behalf of third parties; (ii) of the Paulínia Property 1, whose registrations could not be obtained until the present date; (c) sixty million, seven hundred and thirty-six thousand seven hundred and seven (60,736,707) shares issued by Viva Ambiental (“Viva Ambiental Shares”) which, together with Viva Ambiental Cavo Shares (as defined below) , represent the entire capital stock of Viva Ambiental;
|
XX. |
Cavo is the legitimate owner (i) of 6,100,055 (six million, one hundred thousand, and fifty-five) shares issued by CGR Feira de Santana, representing the total capital stock of CGR Feira de Santana; (ii) 100,000 (one hundred thousand) shares issued by V2 Ambiental, representing the entire capital stock of V2 Ambiental; (iii) 9,421,168 (nine million, four hundred and twenty one thousand, one hundred and sixty eight) shares issued by Viva Ambiental (“Viva Ambiental Cavo Shares”) which together with the Viva Ambiental Company Shares represent the total capital of Viva Ambiental;
|
XXI. |
Geo Vision, which is the legitimate owner of 10,254,693 (ten million two hundred and fifty four thousand, six hundred and ninety three) CGR Guatapará shares, representing 50% (fifty percent) of the capital stock of CGR Guatapará; and that Estre Aterros e Valorização SA is the legitimate owner of 10,254,693 (ten million, two hundred and fifty four thousand, six hundred and ninety-three) shares issued by CGR Guatapará, representing 50% (fifty percent) of the capital stock of the CGR Guatapará; and
|
XXII. |
the Company is the legitimate owner of six hundred and sixty-seven million, one hundred and forty-seven thousand, six hundred and eighty (667,147,680) shares issued by Cavo, representing the entire capital stock of Cavo.
|
11.2 |
The Company and the Guarantors, jointly, irrevocably, agree to indemnify the Debenture Holders and the Fiduciary Agent for any and all damages, losses, costs and/or expenses (including court costs and attorneys’ fees) incurred and proven by Debenture Holders and/or by the Fiduciary Agent on the grounds of falsehood and/or inaccuracy of any of the statements provided under Clause 11.1 above.
|
11.3 |
Notwithstanding the provisions of Clause 11.2 above, The Company and the Guarantors undertake to notify within (2) Business Days as of the date on which they take notice of the Debenture Holders (pursuant to Clause 7.35 above or individual notice to all Debenture Holders with a copy to the Fiduciary Agent) and the Fiduciary Agent if any of the statements provided under Clause 11.1 above is false and/or incorrect on any of the dates on which it was provided.
|
12. |
Expenses
|
12.1 |
All costs incurred with the Issue and Offer and the structuring, issuance, registration, deposit and execution of the Debentures and Warranties, as the case may be, shall be borne by Company and Guarantors, including publications, inscriptions, registrations, deposits, contracting of the Fiduciary Agent, the Bookkeeper, the Settlement Bank, the Independent Auditor and other service providers, and any other costs related to Debentures or Warranties.
|
13. |
Communications
|
13.1 |
All communications under this Deed of Issuance shall always be made in writing to the addresses below and will be considered as received (i) in the case of communications in general, on the date of delivery, under protocol or by “notice of receipt “issued by the Brazilian Post and Telegraph Company; and (ii) in the case of communications made by e-mail, on the date of its sending, provided that its receipt is confirmed through the call sign (receipt issued by the machine used by the sender). The amendment of any of the addresses below shall be communicated to the other Parties by the Party whose address is changed.
|
I. |
to the Company:
|
II. |
to the Fiduciary Agent:
|
III. |
to the Guarantors:
|
14. |
General Provisions
|
14.1 |
The obligations assumed in this Deed of Issuance are irrevocable and irreversible, obliging the Parties and their successors, in any capacity, to their full compliance.
|
14.2 |
Any amendment to this Deed of Issuance will only be considered valid if formalized in writing, in an instrument executed by all the Parties.
|
14.3 |
The invalidity or nullity, in whole or in part, of any of the Clauses of this Deed of Issuance shall not affect the others, which shall remain valid and effective until the fulfillment by the Parties of all their obligations hereunder.
|
14.4 |
Any tolerance, partial exercise or concession amongst the Parties shall always be considered mere liberality and shall not constitute a waiver or loss of any right, faculty, privilege, prerogative or conferred powers (including mandate), nor shall it imply novation, alteration, compromise, remission, modification or reduction of rights and obligations arising therefrom.
|
14.5 |
The Parties recognize this Deed of Issuance and the Debentures as extrajudicial enforceable title under article 784, items I, III and V of the Code of Civil Procedure.
|
14.6 |
For the purposes of this Deed of Issuance, the Parties may, in their sole discretion, request the specific performance of the obligations assumed hereunder, pursuant to Articles 497 et seq., 538 and Articles on various types of implementation (Article 797 et seq.), all of the Code of Civil Procedure, Notwithstanding the right to declare the early maturity of the obligations connected with the Debentures, under the terms provided in this Deed of Issuance.
|
15. |
Applicable Law
|
15.1 |
This Deed of Issuance is governed by the laws of the Federative Republic of Brazil.
|
16. |
Jurisdiction
|
16.1 |
The District Court of the City of São Paulo, São Paulo State, shall be elected, excluding any other, however privileged it may be, in order to settle any questions arising from this Deed of Issuance.
|
I.
|
as issuer and offeror of the Debentures:
|
II.
|
as fiduciary agent, appointed in the Deed of Issuance, representing the Debenture Holders:
|
III.
|
as guarantors, joint debtors and principal payers, jointly and severally with each other and with the Company:
|
IV.
|
as consenting intervening parties:
|
(A)
|
on July 04, 2011, the Original Deed of Issuance was executed, as amended, considering that Banco BTG Pactual S.A. (“
Confession Ceditor
”) subscribed and paid up in full the Debentures, therefore, since the completion of the Restricted Offer, the only holder of the Debentures;
|
(B)
|
on June 13, 2017, the debit balance of the Debentures, duly increased by interest payable pursuant to Clause 4.5.1 of the Deed of Issuance and calculated pursuant to Clause 5.2 of the Deed of Issuance, was the total value of BRL 966,045,605.83 (nine hundred sixty-six million, forty-five thousand, six hundred and five reais and eighty-three cents) (“
Debentures Outstanding Balance
”);
|
(C)
|
on June 13, 2017, the “Private Instrument of Confession of Indebtedness Under Condition Precedent No. CD7/17” was entered into between the Company, Estre Coleta and the Confession Creditor, as amended on this date (“
Confession of Indebtedness Agreement
”) with the purpose of promoting several redemptions and/or partial amortization of the Debentures, until all Debentures were redeemed and/or amortized;
|
(D)
|
up to the date of this Tenth Amendment, part of the Debentures has already been redeemed and/or amortized and, consequently, (i) obligations arising out the Debentures, totaling, on December 19, 2017, BRL 356,649,933.65 (three hundred fifty-six million, six hundred and forty-nine thousand, nine hundred and thirty-three reais and sixty-five cents), were replaced for all legal purposes by the obligations set forth in the Confession of Indebtedness Agreement (“
Confession of Indebtedness
”); and (ii) obligations arising out the Debentures, totaling, on December 19, 2017, six hundred sixty-six million, six hundred and forty-nine thousand, four hundred and fifty-four reais and seventy-eight cents (BRL 666,649,454.78) ), continued to be represented by 1,772 (one thousand, seven hundred and seventy-two) Debentures;
|
(E)
|
on November 26, 2012, the Company, Pentágono S.A. Distribuidora de Títulos e Valores Mobiliários, Estre Petróleo, Gás e Energia Ltda., as guarantor, among others, executed the “
Private Instrument of Deed regarding the Second Public Issuance of Common Debentures, Non-Convertible into Shares, of a Single Series, of the Unsecured Type, with Additional Real Guarantees and Additional Fiduciary Guarantee, for Public Placement with Restricted Placement Efforts
, of Estre Ambiental S.A.”, as amended on December 19, 2012 (First Amendment), on December 13, 2013 (Second Amendment), on June 9, 2016 (Third Amendment), on September 13, 2016 (Fourth Amendment), on November 4, 2016 (Fifth Amendment), in December 19, 2016 (Sixth Amendment), March 21, 2017 (Seventh Amendment), May 19, 2017 (Eighth Amendment) and August 30, 2017 (Ninth Amendment) (“
Second Deed of Issuance
”), through of which 3,000 (three thousand) simple, non-convertible into shares with additional real guarantee and with additional personal guarantee with a unitary par value of BRL 250,000.00 (two hundred and fifty thousand reais) each, on December 14, 2012 (“
Second Issuance Debentures
” and “
Second Issuance
”, respectively), totaling the amount of BRL 750,000,000.00 (seven hundred and fifty million reais), which were subject to public distribution with restricted placement efforts (“
Restricted Second Issuance Offer
”);;
|
(F)
|
the Company began a process of reprofiling part of its financial debts, represented by the Debentures, Second Issuance Debentures and by the Confession of Indebtedness, in order to equate its liabilities, its cash requirements and to enable the implementation of the Business Combination;
|
(G)
|
the
Debenture Holders, the
Creditor of the Confession
, the holders of the Second Issuance Debentures and the Company agreed to reprofile the debts represented by the Debentures, the Second Issuance Debentures and by the
Confession of Indebtedness
, granting new terms for the payment of the interest and principal, amending the interest rate and the final maturity, besides granting a debt forgiveness on the pending outstanding balance, provided that (i) the guarantees currently granted to the Second Issuance Debentures were released; (ii) some specific guarantees of the Second Issuance Debentures were released, including the Surety provided by Infraner Petróleo, Gás e Energia Ltda. (current corporate name of Estre Petróleo, Gás e Energia Ltda.); Pilares Participações Ltda.; CTR Itaboraí - Centro de Tratamento de Resíduos Itaboraí Ltda. and by LMG Participações Ltda; (iii) some specific guarantees currently granted to the Second Issuance Debentures and to the
Confession of Indebtedness
were shared between the respective creditors and the holders of the First Issuance Debentures; (iv) new guarantees were granted to (and shared between) the Debentures, the Second Issuance Debentures and the
Confession of Indebtedness
; (v) the Fulfillment of the Business Combination occurs until December 25
th
, 2017; and (v) after the Fulfillment of the Business Combination (and, in any case, until December 26
th
, 2017), a payment is fulfilled by the Company, in the amount, in Reais, corresponding to, at least, one hundred million American Dollars (USD 100,000,000.00), until the maximum of two hundred million American Dollars (USD 200,000,000.00), considering that (a) forty-five point six percent (45.6%) of such amount shall be used to amortize the outstanding balance related with the with Secured Obligations related the Second Issuance, and (b) fifty-four point four percent (54.4%) shall be used to amortize the outstanding balance related with the Debentures Secured Obligations;
|
(H)
|
as a result of the provisions of Recital (G) above:
|
(i)
|
on December 19, 2017, the Debenture Holders, together in a general meeting, approved: (a) the amendment, among other, of the following terms and conditions of the Debentures: (a.1) term and maturity date; (a.2) dates of payment of compensatory interest; (a.3) amortization dates of the Nominal Unit Value; (a.4) change of the guarantors and release of guarantees, specifically the release of Mr. Wilson, as guarantor, and the distract of the “Private Instrument of Shares Fiduciary Disposal Agreement Logística Ambiental de São Paulo S.A. and “Fiduciary Assignment of Rights under Guarantee, under Condition Precedent”, of the “Private Instrument of Quotas Fiduciary Disposal and Fiduciary Assignment of Security Rights under Condition Precedent”; of the “Private Instrument of Fiduciary Disposal Agreement of Estre Coleta Holding S.A. (current denomination of P.N.A.S.P.E. Empreendimentos e Participações S.A.) and Fiduciary Assignment of Rights under Guarantee, under Condition Precedent”, of the “Private Instrument of Credit Rights Fiduciary Assignment Agreement and Bank Account in Guarantee, under Condition Precedent”, the “Private Instrument of Real Estate Fiduciary Disposal Agreement in Guarantee and Other Covenants”, the “Private Instrument of Fiduciary Assignment in Guarantee and Other Covenants under Condition Precedent” and the “Private Instrument of Shares Fiduciary Disposal Agreement of I.H.L.S.P.E. Empreendimentos e Participações S.A. and Fiduciary Assignment of Rights under Guarantee, under Condition Precedent”; (a.5) inclusion of new guarantees and their sharing with the Confession of Indebtedness and the Guarantees of the Second Issuance; (a.6) creation of mandatory early amortization event; (a.7) exclusion and inclusion of obligations and events of default; (b) exclusion of intervening parties as parties and signatories to the Deed of Issuance; and (c) adjustments in the format and content of the other clauses as a result of the resolutions object of said meeting, including those arising out CVM Instruction 583, dated December 20, 2016, which revoked CVM Instruction 28, dated November 23, 1983 and amendment of the name of CETIP S.A. – Mercados Organizados for B3 S.A. - Brasil, Bolsa, Balcão - Segmento CETIP UTVM;
|
(ii)
|
on December 19
th
, 2017, the Second Debentures Issuance Holders, together in a general meeting approved: (a) the updating of the type of the Second Issuance Debentures, from unsecured to the real guarantee type; (b) the amendment, among others, of the following terms and conditions of the Second Issuance Debentures: (b.1) term and Maturity Date; (b.2) dates of the payment of the interest remuneration; (b.3) updating of the Nominal Unitary Value and incorporation of the Remuneration in the Nominal Unitary Value; (b.4) amortization dates of the Nominal Unitary Value; (b.5) the release of some specific guarantees currently granted to the Second Issuance Debentures, including the Surety provided by Infraner Petróleo, Gás e Energia Ltda. (current corporate name of Estre Petróleo, Gás e Energia Ltda.); Pilares Participações Ltda.; CTR Itaboraí - Centro de Tratamento de Resíduos Itaboraí Ltda. and by LMG Participações Ltda.; (b.6) the sharing of the guarantees currently granted to the Second Issuance Debentures with the
Confession of Indebtedness and Debentures
; (b.7) inclusion of new guarantees and their sharing with the
Confession of Indebtedness
and with the First Issuance Debentures; (b.8) creation of mandatory early amortization events; (b.9) creation of compliance bonus; (b.10) amendment in the clauses regarding the optional early redemption and optional acquisition; (b.11) exclusion and inclusion of obligations and events of default; and (c) adjustments in the format and content of the other clauses as a result of the decisions object of said meeting, including those arising from CVM Normative Ruling No. 583, dated December 20
th
, 2016, which revoked CVM Normative Ruling No. 28, of November 23
rd
, 1983 and change of the corporate name of CETIP S.A - Mercados Organizados para B3 S.A. – Brasil, Bolsa, Balcão – Segmento CETIP UTVM;
|
(iii)
|
on December 20
h
, 2017, the Confession of Indebtedness Agreement was amended to reflect, among others, the changes to the following terms and conditions of the Confession of Indebtedness: (a)
term and Maturity Date
; (b)
dates of the payment of the interest remuneration
; (c)
amortization dates of the
principal; (d)
the sharing of the guarantees currently granted to the
Confession of Indebtedness with the
Second Issuance Debentures
; (e)
inclusion of new guarantees and their sharing with the Second Issuance Debentures and with the Debentures
, as applicable; (f) creation of a mandatory early amortization event; and (g) exclusion and inclusion of obligations and events of default;
|
(I)
|
the Parties intend to amend and restate the Deed of Issuance, in order to reflect (i) the provisions of the above Recitals; and (ii) the updates of the events that have already occurred, under the terms set forth in this Tenth Amendment;
|
1.
|
Authorization
|
1.1
|
This Tenth Amendment is executed based on the resolutions:
|
I.
|
of the Debenture Holders’ General Meeting held on December 19
th
, 2017;
|
II.
|
of the Company’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
III.
|
of the Company’s Board of Directors’ Meeting held on December 20
th
, 2017;
|
IV.
|
of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017
|
V.
|
of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
VI.
|
of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
VII.
|
of the NGA’s Partners Meeting held on December 20
th
, 2017;
|
VIII.
|
of the NGA Jardinópolis’ Partners Meeting held on December 20
th
, 2017;
|
IX.
|
of the NGA Ribeirão Preto’s Partners Meeting held on December 20
th
, 2017;
|
X.
|
of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XI.
|
of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XII.
|
of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XIII.
|
of the CGR Guatapará’s Partners Meeting held on December 20
th
, 2017;
|
XIV.
|
of the Ambiental Sul’s Partners Meeting held on December 20
th
, 2017;
|
XV.
|
of Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017;
|
XVI.
|
of the Oxil’s Partners Meeting held on December 20
th
, 2017; and
|
XVII.
|
of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20
th
, 2017.
|
2.
|
Amendment
|
2.1
|
The Deed of Issuance is hereby amended in accordance with the decisions set forth in Clause 1 above and shall henceforth be in force in accordance with the terms and conditions comprised in the restated version transcribed in Exhibit I of this Tenth Amendment.
|
2.2
|
The consenting intervening parties are hereby excluded from the capacity of being parties and signatories of the Deed of Issuance, provided that any future amendment to the Deed of Issuance shall not depend on their consent or signature.
|
3.
|
Warranties of the Company and of the Guarantors
|
3.1
|
The Company and the Guarantors in this act provide all the statements described in the restated version of the Deed of Issuance, comprised in Exhibit I of this Tenth Amendment, as if they were transcribed here.
|
4.
|
General Provisions
|
4.1
|
The obligations assumed in this Tenth Amendment are irrevocable and irreversible, obliging the Parties and their successors, in any way, to its full compliance.
|
4.2
|
Any amendment to this Tenth Amendment shall only be considered valid if formalized in writing, in a specific instrument duly executed by all parties.
|
4.3
|
The invalidity or nullity, in whole or in part, of any of the provisions of this Tenth Amendment shall not affect the others, which shall remain valid and effective until the fulfillment by the parties of all their obligations hereunder.
|
4.4
|
Any tolerance, partial exercise or concession between the parties shall always be considered mere liberality and shall not constitute a waiver or loss of any right, faculty, privilege, prerogative or powers conferred (including mandate), nor shall it imply novation, alteration, compromise, remission, amendment or reduction of the rights and obligations arising therefrom.
|
4.5
|
The parties recognize this Tenth Amendment and the Debentures as an extrajudicial enforcement title, pursuant to article 784, items I and III, of Law No. 13.105, dated March 16
th
, 2015, as amended (“
Brazilian Code of Civil Procedure
”).
|
4.6
|
For the purposes of this Tenth Amendment, the Parties may, in their sole discretion, request the specific enforcement of the obligations assumed herein, pursuant to articles 497 et seq., 538, 806 et seq. of the Brazilian Code of Civil Procedure, without prejudice to the right to declare the early maturity of the obligations arising from the Debentures, in accordance with the terms established in the Deed of Issuance.
|
5.
|
Governing Law
|
5.1
|
This Tenth Amendment is governed by the laws of the Federative Republic of Brazil.
|
6.
|
Jurisdiction
|
6.1
|
The district court of the City of São Paulo, São Paulo State, is herein elected to resolve any questions that may result from this Tenth Amendment, with the exclusion of any other, however privileged.
|
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Julio Volotao
Name: Julio Volotao
Position: Legal Officer |
/s/ Sergio Pedreiro
Name: Sergio Pedreiro
Position: President |
/s/ Fernando Nunes Luis
Name: Fernando Nunes Luis
Position: Attorney-in-fact |
/s/ Bruna Souza Noel
Name: Bruna Souza Noel
Position: Attorney-in-fact |
Mariana Scarabelli dos Santos Cardoso
Name: Mariana Scarabelli dos Santos Cardoso Id.:
CPF/MF:
|
/s/ Priscila Scarabelli Alves
Name: Priscila Scarabelli Alves
Id.:
CPF/MF:
|
I.
|
as issuer and offeror of the Debentures (as defined below):
|
II.
|
as fiduciary agent, appointed in this Deed of Issuance, representing the Debenture Holders:
|
III.
|
as guarantors, joint debtors and principal payers, jointly and severally with each other and with the Company:
|
1.
|
Definitions
|
1.1
|
The following terms are considered defined terms, for the purposes of this Deed of Issuance, whether in the singular or in the plural, and capitalized terms used in this Deed of Issuance that are not defined herein have the meaning defined to them in the others Documents of the Secured Obligations related with the Debentures.
|
2.
|
Authorizations
|
2.1
|
The Issuance, Offering and execution of this Deed of Issuance, the other Documents of the Secured Obligations regarding the Debentures and the Placement Agreement were made based on the deliberations:
|
I.
|
the minutes of an extraordinary general meeting held on July 4, 2011;
|
II.
|
the minutes of the board meeting of held on July 4, 2011;
|
III.
|
of the minutes of the Debenture Holders’ General Meeting held on July 22, 2011;
|
IV.
|
of the minutes of the Debenture Holders’ General Meeting held on November 17, 2011;
|
V.
|
of the minutes of the Debenture Holders’ General Meeting held on February 17, 2012;
|
VI.
|
of the minutes of the Debenture Holders’ General Meeting held on April 30, 2012;
|
VII.
|
of the minutes of the Debenture Holders’ General Meeting held on June 25, 2012;
|
VIII.
|
of the minutes of the Debenture Holders’ General Meeting held on September 6, 2012;
|
IX.
|
of the minutes of the Debenture Holders’ General Meeting held on November 13, 2012;
|
X.
|
of the minutes of the Debenture Holders’ General Meeting held on September 6, 2013;
|
XI.
|
of the minutes of the Debenture Holders’ General Meeting held on March 7, 2014;
|
XII.
|
of the minutes of the Debenture Holders’ General Meeting held on April 15, 2014;
|
XIII.
|
of the minutes of the Debenture Holders’ General Meeting held on September 8, 2014;
|
XIV.
|
of the minutes of the Debenture Holders’ General Meeting held on March 5, 2015;
|
XV.
|
of the minutes of the Debenture Holders’ General Meeting held on April 24, 2015;
|
XVI.
|
of the minutes of the Debenture Holders’ General Meeting held on September 8, 2015;
|
XVII.
|
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2015;
|
XVIII.
|
of the minutes of the Debenture Holders’ General Meeting held on October 29, 2015;
|
XIX.
|
of the minutes of the Debenture Holders’ General Meeting held on November 9, 2015;
|
XX.
|
of the minutes of the Debenture Holders’ General Meeting held on December 11, 2015;
|
XXI.
|
of the minutes of the Debenture Holders’ General Meeting held on December 15, 2015;
|
XXII.
|
of the minutes of the Debenture Holders’ General Meeting held on January 13, 2016;
|
XXIII.
|
of the minutes of the Debenture Holders’ General Meeting held on January 28, 2016;
|
XXIV.
|
of the minutes of the Debenture Holders’ General Meeting held on February 26, 2016;
|
XXV.
|
of the minutes of the Debenture Holders’ General Meeting held on April 29, 2016;
|
XXVI.
|
of the minutes of the Debenture Holders’ General Meeting held on June 9, 2016;
|
XXVII.
|
of the minutes of the Debenture Holders’ General Meeting held on August 30, 2016;
|
XXVIII.
|
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2016;
|
XXIX.
|
of the minutes of the Debenture Holders’ General Meeting held on October 10, 2016;
|
XXX.
|
of the minutes of the Debenture Holders’ General Meeting held on December 9, 2016;
|
XXXI.
|
of the minutes of the Debenture Holders’ General Meeting held on March 8, 2017;
|
XXXII.
|
of the minutes of the Debenture Holders’ General Meeting held on March 9, 2017;
|
XXXIII.
|
of the minutes of the Debenture Holders’ General Meeting held on May 8, 2017;
|
XXXIV.
|
of the minutes of the Debenture Holders’ General Meeting held on May 10, 2017;
|
XXXV.
|
of the minutes of the Debenture Holders’ General Meeting held on May 31, 2017;
|
XXXVI.
|
of the minutes of the Debenture Holders’ General Meeting held on June 21, 2017;
|
XXXVII.
|
of the minutes of the Debenture Holders’ General Meeting held on July 7, 2017;
|
XXXVIII.
|
of the minutes of the Debenture Holders’ General Meeting held on September 29, 2017;
|
XXXIX.
|
of the minutes of the Debenture Holders’ General Meeting held on December 12, 2017;
|
XL.
|
of the minutes of the Debenture Holders’ General Meeting held on December 19, 2017;
|
XLI.
|
of the meeting of the Board of Directors of the Company held on December 20, 2017;
|
XLII.
|
of the Company’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLIII.
|
of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLIV.
|
of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLV.
|
of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
XLVI.
|
of the NGA Partners’ Meeting held on December 20, 2017;
|
XLVII.
|
of the NGA Jardinópolis Partners’ Meeting held on December 20, 2017;
|
XLVIII.
|
of the NGA Ribeirão Preto Partners’ Meeting held on December 20, 2017;
|
XLIX.
|
of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
L.
|
of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
LI.
|
of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
LII.
|
of the CGR Guatapará Partners’ Meeting held on December 20, 2017;
|
LIII.
|
of the Ambiental Sul Partners’ Meeting held on December 20, 2017;
|
LIV.
|
of the Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20, 2017;
|
LV.
|
of the Oxil Partners’ Meeting held on December 20, 2017; and
|
LVI.
|
of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20, 2017.
|
3.
|
Requirements
|
3.1
|
The Issuance, Offering and execution of this Deed of Issuance, the other Documents of the Secured Obligations regarding the Debentures and the Placement Agreement were made in compliance with the following requirements:
|
I.
|
filing and publication of the minutes of corporate acts
. Pursuant to article 62, item I of Brazilian Corporation Law:
|
(i)
|
the minutes of the extraordinary general meeting held on July 4, 2011 were filed at JUCESP on July 21, 2011 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(ii)
|
the minutes of the board of directors meeting held on July 4, 2011 were filed at JUCESP on July 21, 2011 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(iii)
|
the minutes of the debenture holders’ general meeting held on November 17, 2011 were filed at JUCESP on December 28, 2011 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(iv)
|
the minutes of the debenture holders’ general meeting held on February 17, 2012 were filed at JUCESP on March 26, 2012 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(v)
|
the minutes of the debenture holders’ general meeting held on April 30, 2012 were filed at JUCESP on June 11, 2012 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(vi)
|
the minutes of the debenture holders’ general meeting held on June 25, 2012 were filed at JUCESP on August 23, 2012 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(vii)
|
the minutes of the debenture holders’ general meeting held on’ September 6, 2012 was filed at JUCESP and published in DOESP and the newspaper “Empresas & Negócios”;
|
(viii)
|
the minutes of the debenture holders’ general meeting held on November 13, 2012 was filed at JUCESP on January 13, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(ix)
|
the minutes of the Debenture Holders’ General Meeting holders held on September 6, 2013 were filed at JUCESP on October 29, 2013 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(x)
|
the minutes of the Debenture Holders’ General Meeting holders held on March 7, 2014 were filed at JUCESP on April 17, 2014 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xi)
|
the minutes of the Debenture Holders’ General Meeting held on April 15, 2014 were filed at JUCESP on April 29, 2014 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xii)
|
the minutes of the Debenture Holders’ General Meeting held on September 8, 2014 were filed at JUCESP on September 22, 2014 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xiii)
|
the minutes of the Debenture Holders’ General Meeting held on March 5, 2015 were filed at JUCESP on March 18, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xiv)
|
the minutes of the Debenture Holders’ General Meeting held on April 24, 2015 was filed at JUCESP on May 12, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xv)
|
the minutes of the Debenture Holders’ General Meeting held on September 8, 2015 were filed at JUCESP on September 28, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xvi)
|
the minutes of the Debenture Holders’ General Meeting held on September 29, 2015 were filed at JUCESP on October 26, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xvii)
|
the minutes of the Debenture Holders’ General Meeting held on October 29, 2015 were filed at JUCESP on December 8, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xviii)
|
the minutes of the Debenture Holders’ General Meeting held on November 9, 2015 were filed at JUCESP on December 7, 2015 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xix)
|
the minutes of the Debenture Holders’ General Meeting held on December 11, 2015 was filed at JUCESP on February 11, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xx)
|
the minutes of the Debenture Holders’ General Meeting held on December 15, 2015 was filed at JUCESP on February 11, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxi)
|
the minutes of the Debenture Holders’ General Meeting held on January 13, 2016 were filed at JUCESP on February 23, 2016 and published at DOESP and the newspaper “Empresas & Negócios”;
|
(xxii)
|
the minutes of the Debenture Holders’ General Meeting held on January 28, 2016 were filed at JUCESP on February 26, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxiii)
|
the minutes of the Debenture Holders’ General Meeting held on February 26, 2016 were filed at JUCESP on April 4, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxiv)
|
the minutes of the Debenture Holders’ General Meeting held on April 29, 2016 were filed at JUCESP on June 8, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxv)
|
the minutes of the Debenture Holders’ General Meeting held on June 9, 2016 were filed at JUCESP on October 26, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxvi)
|
the minutes of the Debenture Holders’ General Meeting held on August 30, 2016 was filed at JUCESP on October 26, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxvii)
|
the minutes of the Debenture Holders’ General Meeting held on September 29, 2016 were filed at JUCESP on October 26, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxviii)
|
the minutes of the Debenture Holders’ General Meeting held on October 10, 2016 were filed at JUCESP on November 25, 2016 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxix)
|
the minutes of the Debenture Holders’ General Meeting held on December 9, 2016 was filed at JUCESP on May 25, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxx)
|
the minutes of the Debenture Holders’ General Meeting held on March 8, 2017 was filed at JUCESP on April 4, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxxi)
|
the minutes of the Debenture Holders’ General Meeting held on March 9, 2017 was filed at JUCESP on April 11, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxxii)
|
the minutes of the Debenture Holders’ General Meeting held on May 8, 2017 was filed at JUCESP on September 6, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxxiii)
|
the minutes of the Debenture Holders’ General Meeting held on May 10, 2017 was filed at JUCESP on May 30, 2017 and published in DOESP and the newspaper “Empresas & Negócios”;
|
(xxxiv)
|
the minutes of the Debenture Holders’ General Meeting held on June 21, 2017 shall be filed at JUCESP and published in DOESP and the newspaper “Gazeta de São Paulo pursuant to Clause 8.1, subsection III, item (x) and Annex I”;
|
(xxxv)
|
the minutes of the Debenture Holders’ General Meeting held on July 7, 2017 was filed at JUCESP on August 14, 2017 and shall be published in DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xxxvi)
|
the minutes of the Debenture Holders’ General Meeting held on September 29, 2017 was filed at JUCESP on November 22, 2017 and will be published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xxxvii)
|
the minutes of the Debenture Holders’ General Meeting held on December 12, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xxxviii)
|
the minutes of the Debenture Holders’ General Meeting held on December 12, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xxxix)
|
the minutes of the meeting of the Company’s Board of Directors held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xl)
|
the minutes of the Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xli)
|
the minutes of the Geo Vision’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlii)
|
the minutes of the Cavo’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xliii)
|
the minutes of the Estre SPI’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xliv)
|
the minutes of NGA Jardinópolis Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlv)
|
the minutes of NGA Ribeirão Preto Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlvi)
|
the minutes of the Viva Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlvii)
|
the minutes of the CGR Feira de Santana’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCEBA and published at DOEBA
and the newspaper “Jornal Tribuna da Bahia” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlviii)
|
the minutes of the V2 Ambiental’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCEAL and published at DOEAL
and the newspaper “Jornal A Gazeta - Alagoas” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(xlix)
|
the minutes of CGR Guatapará Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(l)
|
the minutes of Ambiental Sul Partners’ Meeting held on December 20, 2017 shall be filed at JUCEPAR pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(li)
|
the minutes of the Resicontrol’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(lii)
|
the minutes of Oxil Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
(liii)
|
the minutes of NGA Partners’ Meeting held on December 20, 2017 shall be filed at JUCESP pursuant to Clause 8.1, subsection III, item (x) and Annex I; and
|
(liv)
|
the minutes of the Estre Aterros’s Extraordinary Shareholders’ General Meeting held on December 20, 2017 shall be filed at JUCESP and published at DOESP and the newspaper “Gazeta de São Paulo” pursuant to Clause 8.1, subsection III, item (x) and Annex I;
|
II.
|
subscription and registration of this Deed of Issuance and its amendments.
Pursuant to article 62, section II and paragraph 3, of Brazilian Corporation Law, and articles 129 and 130 of Law No. 6,015, dated December 31, 1973, as amended:
|
(i)
|
this Deed of Issuance was registered with JUCESP on July 26, 2011, under number ED000750-0/000, the first amendment to this Deed of Issuance was registered at JUCESP on August 23, 2011, under number ED000750-0/001, the second amendment to this Deed of Issuance was registered with JUCESP on December 28, 2011, under number ED000750-0/002, the third amendment to this Deed of Issuance was registered with JUCESP on April 13, 2015, under number ED000750-0/003, the fourth amendment to this Deed of Issuance was registered at JUCESP on November 3, 2016, under number ED000750-0/004, the fifth amendment to this Deed of Issuance was registered with JUCESP on November 29, 2016, under number ED000750-0/005, the sixth amendment to this Deed of Issuance was registered with JUCESP on December 27, 2016 under number ED000750-0/006, the seventh amendment to this Deed of Issuance, was registered with JUCESP on April 25, 2017, under number ED001063‑7/007, the eighth amendment to this Deed of Issuance, was registered with JUCESP on June 1, 2017, under number ED001063‑7/008, the ninth amendment to this Deed of Issuance was registered with JUCESP on August 23, 2017 under number ED001063‑7/009, and the tenth amendment to this Deed of Issuance and its other amendments will be registered with JUCESP; and
|
(ii)
|
Deed of Issuance was registered before the 5
th
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on July 14, 2011, and the 1
st
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on July 26, 2011 the first amendment to this Deed of Issuance, was registered with the 5
th
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on August 19, 2011 and the 1
st
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on August 30, 2011 the second amendment to this Deed of Issuance, was registered with the 5
th
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo, on February 1, 2012, the eighth amendment to this Deed of Issuance, was registered with 5
th
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo on April 18, 2017, and 5
th
Registry of Deeds and Documents of the City of Rio de Janeiro, State of Rio de Janeiro, on April 26, 2017, the ninth amendment to this Deed of Issuance was registered with 5
th
Registry of Deeds and Documents of the City of São Paulo, State of São Paulo on May 25, 2017, the tenth and other amendments to this Deed of Issuance shall be registered or recorded, as the case may be, in the competent Registry of Deeds and Documents of the Parties;
|
III.
|
constitution of the Fiduciary Disposal of Shares
. Subject to the provisions of Clause 7.10 below, the Fiduciary Disposal of Shares were (or, in relation to the shares of the Company, shall be) formalized through the Fiduciary Disposal of Shares Agreement, provided that the Fiduciary Disposal of Shares shall be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Disposal of Shares Agreement;
|
IV.
|
constitution of the Fiduciary Disposal of Quotas
. Subject to the provisions of Clause 7.11 below, the Fiduciary Disposal of Quotas were formalized through the Agreements regarding the Fiduciary Disposal of Quotas, provided that the Fiduciary Disposal of Quotas shall be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Disposal of Quotas Agreement;
|
V.
|
constitution of the Fiduciary Assignment – Properties
. Subject to the provisions of Clause 7.12 below, the Fiduciary Assignment – Properties was formalized through the Fiduciary Assignment – Properties Agreement, provided that the Fiduciary Assignment – Properties must be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Assignment – Properties Agreement;
|
VI.
|
constitution of the Fiduciary Assignment – Surplus
. Subject to the provisions of Clause 7.13 below, the Fiduciary Assignment – Surplus was formalized through the Fiduciary Assignment – Surplus Agreement, provided that the Fiduciary Assignment – Surplus must be duly constituted observing the procedures, terms and conditions set forth in the respective Fiduciary Assignment – Surplus Agreement;
|
VII.
|
deposit for placement
. The Debentures were deposited for placement in the primary market through the Securities Placement Module, currently denominated Asset Allocation Module, and the placement of the Debentures was financially settled through B3 (current denomination of CETIP S.A. - Organized Markets);
|
VIII.
|
deposit for negotiation and electronic custody
. Pursuant to Clause 6.4 below, the Debentures were deposited for trading in the secondary market through the National Debenture Module (SND), currently denominated CETIP21, with the trading of the Debentures being financially settled through B3 and the Debentures deposited electronically in B3;
|
IX.
|
registration of the Offer by the Securities Commission
. The Offer was automatically exempted from registration by the Securities Commission, pursuant to Article 6 of Securities Commission Instruction 476, as it is a public offer of placement with restricted placement efforts;
|
X.
|
registration of the Offer by ANBIMA.
Pursuant to article 25, paragraph 1, of the “ANBIMA Code of Regulation and Best Practices for the Public Offerings regarding the Placement and Acquisition of Securities”, then in force at the time of the Offer, the Offer was not registered with ANBIMA.
|
4.
|
Corporate Purpose Of the Company
|
4.1
|
The Company’s corporate purpose is (a) the execution in Brazil or abroad of public or private works in the various civil engineering sectors, such as residential, commercial and industrial buildings; earthworks, drainage, paving and complementary works of road systems, urban or rural; collection, treatment, storage and distribution of water; interception, conduction and treatment of sanitary and industrial sewage; (b) the management of waste of any kind, including, but not limited to, gaseous, liquid, semi-liquid and solid waste, whether industrial, commercial, hospital, urban or otherwise; (c) the provision of waste management services of any kind, including, but not limited to, research services, prior diagnostics, certification, documentation management, identification, segregation, sorting, packaging, handling, recycling, reuse recovery, transhipment, collection and transport of all types of waste (solid, liquid and gaseous), storage, treatment, decontamination, remediation, cleaning, final disposal, execution of projects, consulting and consulting in the area of engineering; (d) the implementation, operation and maintenance of environmental projects, such as: sanitary landfills for final disposal of solid household, industrial and hospital waste; waste factories; incinerators and disinfectants of any type of waste; organic and industrial waste composting plants (inert or not); and solid waste recycling and treatment plants; (e) treatment of any type of waste and effluent, including, but not limited to, physical, biological and/or thermal treatment, with or without premixing, in own or third-party facilities; (f) the commercialization of waste of any kind, scrap, by-products, miscellaneous materials and recycled aggregates of solid construction waste; (g) sweeping and cleaning public streets and public places; (h) provision of laboratory services of all types, including, but not limited to, sampling, sample preparation, performance of various analyzes and preparation of reports and reports on interpretation of results; (i) the provision of environmental consulting services, including, but not limited to, the preparation of management plans, master plans, market studies, studies for the choice of technology, geological and hydrological reports, environmental management, research activities, diagnosis, risk analysis and detailed projects for the management of environmental liabilities and impacted areas; (j) any service or activity linked to the management of waste of all kinds and class and/or control or improvement of environmental and ecological conditions; (k) leasing of equipment and machinery; (l) the operation of treatment of water, sewage and/or industrial effluents; (m) the implementation of Clean Development Mechanism (CDM) projects to reduce emissions of gases and effluents; (n) geotechnical monitoring and landfill stability services, and groundwater, surface and effluent monitoring; and (o) participation in other companies as partner or shareholder, and may also carry out mergers, mergers and associations with other companies.
|
5.
|
Destination Of the Funds
|
5.1
|
The proceeds obtained through this Issuance were intended to (a) the payment of loans taken by the Company through the issuance of the Bank Credit Note No. 019/11, 020/11 and 021/11 issued in favor of BTG.
|
6.
|
Characteristics Of The Offer
|
6.1
|
Placing
. The Debentures were the object of a public offering of placement with restricted placement efforts, under the terms of the Securities Market Law, Securities Commission Instruction 476 and other applicable legal and regulatory provisions, and the Placement Agreement, with the intermediation of the Leader Coordinator, under the system of firm guarantee of placement, to the totality of the Debentures, in the total amount BRL 482,000,000 (four hundred and eighty-two million Reais), targeting Professional Investors.
|
6.2
|
Term of Subscription
. Respecting compliance with the requirements referred to in Clause 3 above, the Debentures were subscribed in compliance with the provisions of Sections 7-A and 8, paragraph 2
nd
, of Securities Commission Instruction 476.
|
6.3
|
Form of Subscription and of Payment and Payment Price
. The Debentures were subscribed and paid up through the SDT (Securities Placement Module), currently denominated MDA, by a maximum of 20 (twenty) Professional Investors, at the time of subscription (“
Payment Date
”), and in currency, at the Nominal Unit Value, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date to the respective Payment Date (“
Payment Price
”).
|
6.4
|
Trading
. The Debentures were deposited for trading in the secondary market through SND – National Debentures Module, currently denominated CETIP21. The Debentures may only be traded on the organized over-the-counter market after 90 (ninety) days from each subscription or acquisition by the investor, pursuant to articles 13 and 15 of Securities Commission Instruction 476, observing the Company’s compliance with the obligations provided for in article 17 of Securities Commission Instruction 476. The Debentures may only be negotiated between qualified investors, as defined in the terms of article 9 B of Securities Commission Instruction 539, unless the Company obtains the registration referred to in article 21 of the Law of the Securities Market.
|
7.
|
Characteristics Of Issuance And Debentures
|
7.1
|
Issuance Number
. The Debentures represent the 1
st
(first) issuance of debentures of the Company.
|
7.2
|
Total Issuance Value
. The initial amount of the Issue was BRL 482,000,000 (four hundred and eighty-two million Reais), on the Issuance Date, of which, on July 25, 2011, the total amount of the Issuance was rectified, with the total amount of the Issuance being BRL 680,000,000 (six hundred and eighty million Reais) on the Issuance Date.
|
7.3
|
Quantity
. One thousand nine hundred and twenty-eight (1,928) Debentures were issued, on July 25, 2011 the quantity of Debentures was rectified, with the total amount being 2,720 (two thousand seven hundred and twenty) Debentures.
|
7.4
|
Nominal Unitary Value
. The Debentures will have a nominal unit value of BRL 250,000 (two hundred and fifty thousand Reais), on the Issuance Date (“
Nominal Unitary Value
”).
|
7.5
|
Series
. The Issuance was carried out in a single series.
|
7.6
|
Form and Proof of Entitlement
. The Debentures were issued in registered, book-entry form, without issuance of certificates, and for all legal purposes, the ownership of the Debentures will be proved by the deposit account statement issued by the Bookeeping, and, in addition, in relation to the Debentures which are deposited electronically in B3, shall be evidenced by the statement issued by B3 on behalf of the Debenture Holder.
|
7.7
|
Convertibility
. The Debentures are not convertible into shares issued by the Company.
|
7.8
|
Type
. The Debentures are of the real guarantees’ type by virtue of Article 58 of the Brazilian Corporation Law, consisting of the Fiduciary Disposal of Shares, pursuant to Clause 7.10 below, and in the Fiduciary Disposal of Quotas, pursuant to Clause 7.11 below. In addition, the Debentures are guaranteed by the Surety, pursuant to Clause 7.9 below.
|
7.9
|
Fiduciary Guarantee and Passive Joint Liability
. The Guarantors hereby bind themselves and the Company, irrevocably and irreversibly, before the Debenture Holders, as guarantors, joint debtors, principal payers and jointly and severally (among themselves and with the Company) responsible for all the Secured Obligations related with the Debentures, expressly renouncing to the benefits of order, rights and powers of exoneration of any nature provided in articles 333, single paragraph, 364, 366, 368, 821, 827, 829, single paragraph, 830, 834, 835 , 837, 838 and 839 of the Civil Code, and Articles 130 and 794 of the Code of Civil Procedure, for full payment of the Secured Obligations related with the Debentures, on the dates set forth in this Deed of Issuance, regardless of judicial or extrajudicial notification, or any another measure, subject to the provisions of Clause 7.30 below (“
Surety
”).
|
7.9.1
|
The Fiduciary Agent shall, as the representative of the Debenture Holders, request the judicial or extrajudicial enforcement of the Surety, according to the function assigned to it in this Deed of Issuance, once verified any hypothesis of insufficiency of payment of any Secured Obligations regarding the Debentures. The Surety may be exported and required by the Fiduciary Agent of any of the Guarantors, jointly or severally, as often as necessary until the full and effective discharge of all Secured Obligations related with the Debentures, provided that failure by the Fiduciary Agent shall not cause, in any event, loss of the right of execution of the Guarantee by the Debenture Holders.
|
7.9.2
|
The Surety shall enter into force on the date of execution of this Deed of Issuance and shall remain valid until the full payment of the Secured Obligations related with the Debentures.
|
7.9.3
|
Each of the Guarantors, from now on, agrees and undertakes, (i) only after having fully removed the Secured Obligations related with the Debentures, to demand and/or sue the Company or any of the other Guarantors as a result of any amount honored under the Secured Obligations regarding the Debentures; and (ii) if it receives any value from the Company and/or any of the other Guarantors as a result of any amount it has honored pursuant to Secured Obligations prior to the full settlement of the Secured Obligations related with the Debentures, and any of the Secured Obligations Regarding the Debentures, it is pending payment, to transfer, within one (1) Business Day counted from the date of its receipt, such amount to the Debenture Holders. For the purposes of this Clause, the honor of the Surety will not be considered in default under the terms provided herein.
|
7.9.4
|
In the event of the foreclosure from the Fiduciary Disposal of Shares issued by the Company, each of the Guarantors hereby waives any right to recover from the Company, the Debenture Holders and/or the other Guarantors, any amount it has honored under of this Deed of Issuance, thus not subrogating, in this case, the credit rights corresponding to the Secured Obligations. The assignment of any credit arising from honoring the Surety to any third party is hereby prohibited.
|
7.9.5
|
Payments made by the Guarantors with respect to the Debentures shall be made in such a way that the Debenture Holders receive from the Guarantors the amounts that would be delivered to them if such payments had been made by the Company, and it is not for the Guarantors to make any deduction that does not would be performed by the Company if the Company had made the respective payment.
|
7.9.6
|
In the event of transfer of ownership of all shares or quotas, as applicable, issued by any of the Guarantors as a result of the execution or exemption procedure provided for in the respective Agreements regarding the Fiduciary Disposal of Shares or Agreements regarding the Fiduciary Disposal of Quotas , as the case may be, upon receipt of the amounts of execution or exemption by the Debenture Holders and the Creditor of the Confession, the respective Guarantor whose shares or quotas were object of the execution or exemption will be released from the Surety and will cease to be jointly and severally co-payer under of this Deed of Issuance automatically and independently of any additional formality (including independently of any addition to this Deed of Issuance).
|
7.9.7
|
The execution of the Surety provided by V2 Ambiental will be limited to the amount that exceeds the amounts necessary for the payment of all capital and operational expenses to which V2 Ambiental, by virtue of concession agreement n. 85/2009, is obligated.
|
7.10
|
Fiduciary Disposal of Shares
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures, observing the provisions of Clause 7.14 below and in the respective Agreements regarding the Fiduciary Disposal of Shares, the fiduciary dispositions of (“
Fiduciary Disposal of Shares
”) (“
Fiduciary Disposed Shares
”) shall be constituted:
|
I.
|
common, nominative shares with no nominal value, issued by the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2, representing the total voting capital and total of the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2;
|
II.
|
the shares resulting from unfolding, splits and/or bonuses resulting from the actions referred to in the previous items;
|
III.
|
the shares issued in replacement of the shares referred to in the previous items, including those issued as a result of a corporate transaction involving the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2;
|
IV.
|
with respect to the shares referred to in the preceding paragraphs, the right to subscribe for new shares representing the capital stock of the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2, including the right to subscribe for guarantess, convertible debentures, beneficiary shares, certificates, securities and other securities convertible or exchangeable in shares; and
|
V.
|
with respect to the shares or securities referred to in the preceding paragraphs, all rights thereto, including the right to receive income, profits, dividends, interest on capital and/or any other distribution of profits, in cash or any other form, paid in accordance with the applicable legislation, subject to the provisions of the Agreements regarding the Fiduciary Disposal of Shares.
|
7.10.1
|
Under the terms of the Agreements regarding the Fiduciary Disposal of Shares, the respective Fiduciary Disposal of Shares, Fiduciary Disposed Shares corresponding to the total shares issued by the Company, Geo Vision, Cavo, Estre SPI, Viva, CGR Feira de Santana, Resicontrol and V2 (“
Percentage of the Fiduciary Disposal of Shares
”).
|
7.10.2
|
The provisions relating to the Fiduciary Disposal of Shares and the Percentage of the Fiduciary Disposal of Shares are described in the Agreements regarding the Fiduciary Disposal of Shares, which are an integral, complementary and inseparable part of this Deed of Issuance.
|
7.11
|
Fiduciary Disposal of Quotas
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures, observing the provisions of Clause 7.14 below and in the respective Agreements regarding the Fiduciary Disposal of Quotas, the fiduciary disposals of (“
Fiduciary Disposal of Quotas
”) (“
Fiduciary Disposed Quotas
”) shall be constituted:
|
I.
|
the quotas issued by NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul, representing the entire voting and total capital stock of NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, the NGA, Oxil and the Ambiental Sul
|
II.
|
the quotas resulting from unfolding, splits and/or bonuses resulting from the actions referred to in the previous items;
|
III.
|
the quotas issued in replacement of the quotas referred to in the previous items, including those issued as a result of a corporate transaction involving NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul;
|
IV.
|
in relation to the quotas referred to in the preceding paragraphs, the right to subscribe new shares representing the capital stock of NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and Ambiental Sul, and other convertible or exchangeable in quotas; and
|
V.
|
with respect to the quotas or securities referred to in the preceding paragraphs, all rights thereto, including the right to receive income, profits, dividends, interest on own capital and/or any other distribution of profits, in cash or any other form, paid in accordance with the applicable legislation, in compliance with the provisions of the Agreements regarding the Fiduciary Disposal of Quotas.
|
7.11.1
|
Under the terms of the Agreements regarding the Fiduciary Disposal of Quotas, in the respective Fiduciary Disposal of Quotas, Fiduciary Disposed Quotas corresponding to all the quotas issued by NGA Jardinópolis, NGA Ribeirão Preto, CGR Guatapará, NGA, Oxil and the Ambiental Sul (“
Percentage of the Fiduciary Disposal of Quotas
”).
|
7.11.2
|
The provisions regarding Fiduciary Disposal of Quotas and the Percentage of the Fiduciary Disposal of Quotas are described in the Agreements regarding the Fiduciary Disposal of Quotas, which are an integral, complementary and inseparable part of this Deed of Issuance.
|
7.12
|
Fiduciary Assignment - Properties
. In guarantee of the integral and punctual payment of the Secured Obligations regarding the Debentures observing the provisions of Clause 7.14 below and in the Fiduciary Assignment – Properties Agreement, a fiduciary assignment of certain receivables arising from certain deeds of purchase and sale of real estate and Fiduciary Assignment - Properties (“
Fiduciary Assignment - Properties
”).
|
7.12.1
|
The provisions relating to the Fiduciary Assignment – Properties are described in the Fiduciary Assignment – Properties Agreement, which is an integral, complementary and inseparable part of this Deed of Issuance.
|
7.13
|
Fiduciary Assignment – Surplus
. In guarantee of the integral and punctual payment of the Secured Obligations related with the Debentures observing the provisions of Clause 7.14 below in the Fiduciary Assignment – Surplus Agreement, a fiduciary assignment of certain receivables owned by the Company (“
Fiduciary Assignment – Surplus
”) shall be constituted.
|
7.13.1
|
The Fiduciary Assignment – Surplus provisions are described in the Fiduciary Assignment – Surplus Agreement, which is an integral, complementary and inseparable part of this Deed of Issuance.
|
7.14 |
Sharing B
. The Surety, the Fiduciary Disposal of Shares, the Fiduciary Disposal of Quotas, the Fiduciary Assignment – Properties and the Fiduciary Assignment – Surplus shall be shared between the Secured Obligations in relation to the Debentures, the Secured Obligations related to the Confession of Indebtedness and the Restricted Offer the Second Issuance
pari passu
and observed the Proportion regarding Sharing B.
|
7.15
|
Release Guarantees
. Through Optional Early Redemption and the full settlement of Confession of Indebtedness and Restricted Offerings under the Second Issuance, the Guarantees and Fiduciary Disposals of Property shall be fully released.
|
7.16
|
Issuance Date
. For all legal purposes, the issuance date of the Debentures is June 27, 2011 (“
Issuance Date
”).
|
7.17
|
Term and Maturity Date
. Subject to the hypotheses of early redemption of the Debentures or early maturity of the obligations arising from the Debentures, under the terms set forth in this Deed of Issuance, the Debentures shall be for five thousand two hundred and ninety (5.290) days as of the Issuance Date, therefore, on December 20, 2025 (“
Maturity Date
”).
|
7.18
|
Payment of the Nominal Unitary Value
. Without prejudice to the payments due to early redemption of the Debentures, early amortization of the Debentures or early maturity of the obligations arising from the Debentures, under the terms set forth in this Deed of Issuance, the Nominal Unitary Value of the Debentures will be amortized in successive installments on the dates below, being:
|
Date of Payment
|
Value
|
December 20, 2020
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2021
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2021
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2022
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2022
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2023
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2023
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2024
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2024
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
June 20, 2025
|
5,000% of the outstanding balance of the Nominal Unitary Value
|
December 20, 2025
|
Outstanding balance of the Nominal Unitary Value
|
7.19
|
Remuneration
. The remuneration of the Debentures will be as follows:
|
I.
|
monetary adjustment
: Nominal Unitary Value of the Debentures will not be monetarily restated; and
|
II.
|
interest remuneration
: on the debit balance of the Nominal Unitary Value of the Debentures, interest will be paid corresponding to 100% (one hundred percent) of the accumulated variation of the DI Rate, plus a surcharge (“
Surcharge
”, and, together with the DI Rate,
Remuneration
”) of:
|
(i)
|
between the Issuance Date (inclusive) and March 9, 2012 (exclusive), 3.30% (three and thirty hundredths percent) per year, base 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively
pro rata temporis
, for business days elapsed, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding (inclusive), as the case may be, until the date of actual payment;
|
(ii)
|
between March 9, 2012 (inclusive) and December 27, 2012 (exclusive), 4.40% (four and forty hundredths percent), base 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively
pro rata temporis
, for business days elapsed, since March 9, 2012 (inclusive) or from the date of payment or incorporation of Remuneration immediately preceding (inclusive), as the case may be, until the date of actual payment;
|
(iii)
|
between December 27, 2012 (inclusive) and the date of the first Mandatory Early Amortization (exclusive), 2.95% (two and ninety-five hundredths percent) per year, base 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively
pro rata temporis
, for business days elapsed, from December 27, 2012 or the date of payment or incorporation of Remuneration immediately prior (including), as the case may be, until the effective payment date; and
|
(iv)
|
from the date of the first Mandatory Early Amortization (inclusive), 2.00% (two percent) per year, basis 252 (two hundred and fifty-two) business days, calculated exponentially and cumulatively pro rata (s), from the date of the first Mandatory Early Amortization or the date of payment or incorporation of Remuneration immediately preceding (including), as the case may be, until the date of actual (exclusive) payment.
|
12/20/2019
|
06/20/2020
|
12/20/2020
|
06/20/2021
|
12/20/2021
|
06/20/2022
|
12/20/2022
|
06/20/2023
|
12/20/2023
|
06/20/2024
|
12/20/2024
|
06/20/2025
|
Maturity Date
|
7.19.1
|
The Remuneration incurred between each of the Capitalization Periods (as defined below) will be included in the outstanding balance of the Nominal Unitary Value on the following dates:
|
12/20/2017
|
01/20/2018
|
02/20/2018
|
03/20/2018
|
04/20/2018
|
05/20/2018
|
06/20/2018
|
07/20/2018
|
08/20/2018
|
09/20/2018
|
10/20/2018
|
11/20/2018
|
12/20/2018
|
01/20/2019
|
02/20/2019
|
03/20/2019
|
04/20/2019
|
05/20/2019
|
06/20/2019
|
7.19.2
|
For purposes of Clause 7.19.1 “Capitalization Period” means the time interval that:
|
I.
|
begins on March 9, 2015, inclusive, and ends on December 20, 2017, exclusive;
|
II.
|
begins on December 20, 2017, inclusive, and ends January 20, 2018, exclusive;
|
III.
|
starts on January 20, 2018, inclusive, and ends February 20, 2018, exclusive;
|
IV.
|
begins on February 20, 2018, inclusive, and ends March 20, 2018, exclusive;
|
V.
|
begins on March 20, 2018, inclusive, and ends April 20, 2018, exclusive;
|
VI.
|
begins on April 20, 2018, inclusive, and ends May 20, 2018, exclusive;
|
VII.
|
begins on May 20, 2018, inclusive, and ends June 20, 2018, exclusive;
|
VIII.
|
begins on June 20, 2018, inclusive, and ends July 20, 2018, exclusive;
|
IX.
|
begins on July 20, 2018, inclusive, and ends August 20, 2018, exclusive;
|
X.
|
begins on August 20, 2018, inclusive, and ends September 20, 2018, exclusive;
|
XI.
|
begins on September 20, 2018, inclusive, and ends October 20, 2018, exclusive;
|
XII.
|
begins on October 20, 2018, inclusive, and ends November 20, 2018, exclusive;
|
XIII.
|
begins on November 20, 2018, inclusive, and ends on December 20, 2018, exclusive;
|
XIV.
|
begins on December 20, 2018, inclusive, and ends January 20, 2019, exclusive;
|
XV.
|
begins on January 20, 2019, inclusive, and ends February 20, 2019, exclusive;
|
XVI.
|
begins on February 20, 2019, inclusive, and ends March 20, 2019, exclusive;
|
XVII.
|
begins on March 20, 2019, inclusive, and ends April 20, 2019, exclusive;
|
XVIII.
|
begins on April 20, 2019, inclusive, and ends May 20, 2019, exclusive; and
|
XIX.
|
begins on May 20, 2019, inclusive, and ends June 20, 2019, exclusive.
|
7.19.3
|
Subject to the provisions of Clause 7.19.4 below, if, when calculating any pecuniary obligations related to the Debentures provided for in this Deed of Issuance, the DI Rate is not available, the percentage corresponding to the last one will be used instead DI Rate officially disclosed up to the calculation date, and no financial compensation, fines or penalties are payable between the Company, the Guarantors and/or the Debenture Holders, upon the subsequent disclosure of the DI Rate.
|
7.19.4
|
In the event of extinction, limitation and/or non-disclosure of the DI Rate for more than ten (10) consecutive days after the date expected for its determination and/or disclosure, or in case of impossibility of applying the DI Rate to the Debentures by a legal or judicial prohibition, the Fiduciary Agent shall, within a period of up to five (5) days as from the date of expiration of the term of ten (10) consecutive days or of the date of extinction of the DI Rate or of the date of legal or judicial prohibition, as the case may be, to convene a general meeting of Debenture Holders for Debenture Holders to resolve, in agreement with the Company and observing the applicable regulations, the new parameter of remuneration of the Debentures to be applied, which should be the one that best reflects market conditions effective at the time, which parameter should preserve the real value and the same levels of Remuneration. Until the determination of this new parameter of remuneration of the Debentures, when calculating any pecuniary obligations related to the Debentures provided for in this Deed of Issuance, the percentage corresponding to the last officially declared DI Rate shall be used to calculate the DI Rate, and no financial compensation, fines or penalties shall be payable between the Company, the Guarantors and/or the Debenture Holders upon the determination of the new remuneration parameter for the Debentures. In the event that the DI Rate is re-released prior to the general meeting of Debenture Holders set forth above, said general meeting of Debenture Holders will not be held, and the DI Rate, as of the date of its disclosure, will again be used for the calculation of any pecuniary obligations related to the Debentures provided for in this Deed of Issuance. If there is no agreement on the new remuneration of the Debentures between the Company and Debenture Holders representing at least (i) 60% (sixty percent) of the Debentures in Circulation, according to the General Meeting of Debenture Holders on first call; or (ii) 51% (fifty one percent) of the Debentures in Circulation, according to the general meeting of Debenture Holders held on second call, the Company undertakes to redeem all Debentures (without prejudice to the its consequent cancellation, within 30 (thirty) days from the date of the general meeting of Debenture Holders provided for above or on the Maturity Date, whichever occurs first, by the outstanding balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately preceding Remuneration, as the case may be, until the date of actual payment, without any premium or penalty, and for the calculation of any pecuniary obligations related to the Debentures in this Deed of Issuance, the percentage corresponding to the last officially announced DI Rate shall be used to calculate the DI Rate.
|
7.19.5
|
The Guarantors hereby agree to the provisions of Clauses 7.19.1 and 7.19.4 above, stating that the provisions therein shall not affect novation, as defined and regulated pursuant to Article 360 et seq. of the Civil Code, and the Surety shall remain valid and in full force, including in case of an obligation to the Company to redeem the Debentures, as provided above, or in case of default of such obligation. The Guarantors, from now on, agree and undertake to sign any and all documents necessary for the effectiveness of the provisions of Clause 7.19.4 above.
|
7.20
|
Scheduled renegotiation
. There will be no scheduled renegotiation.
|
7.21
|
Optional Early Redemption
. The Company may at its sole discretion carry out at any time the early redemption of the totality (the partial redemption of the Debentures being prohibited), with the consequent cancellation of such Debentures, upon payment of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the date of actual payment, without any premium or penalty, provided that (i) notice to the Debenture Holders (by posting notice pursuant to Clause 7.36 below or by individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, Bookeeping, Settling Bank and B3, of 5 (five) Business Days of the date of the event; (ii) the simultaneous early redemption of the outstanding balance of the Secured Obligations related to the Confession of Indebtedness and the early redemption of all Second Issuance Debentures, with the exception of the Compulsory Early Amortization - Event of Migration (“
Optional Early Redemption
”).
|
7.22
|
Mandatory Early Redemption - Event of Migration
. The Company shall, upon the occurrence of an Event of Migration that causes the Secured Obligations related with the Debentures to be fully replaced by the Confession of Indebtedness, to carry out the early redemption of all Debentures, with the consequent cancellation of such Debentures upon payment of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the date of the actual replacement by the Confession of Indebtedness, without any premium or penalty (“Mandatory Early Redemption – Event of Migration”).
|
7.22.1 |
The payment for the redeemed Debentures shall be made through the procedures adopted by B3 for the Debentures electronically guarded in the MDA.
|
7.22.2 |
In the event of the Mandatory Early Redemption – Event of Migration, B3 must be communicated with at least 03 (three) Business Days in advance.
|
7.22.3 |
The Debentures subject to the Mandatory Early Redemption - Event of Migration must be canceled.
|
7.23
|
Optional Early Amortization
. The Company may, at its sole discretion, make, at any time, early amortization of the outstanding balance of the Nominal Unitary Value of all Debentures, upon payment of a portion to be amortized of the debit balance of the Nominal Unitary Value of the Debentures, limited to 98 percent (ninety-eight per cent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately preceding Remuneration, as the case may be, until the date of actual payment, without any premium or penalty, provided that: (i) with prior notice to the Debenture Holders (by publication of notice pursuant to Clause 7.36 below or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, the Bookeeping, Settling Bank and B3, of 2 (two) Business Days of the date of the event; and (ii) the anticipated amortization of the outstanding balance of the Restricted Offer regarding the Second Issuance and the Secured Obligations related with the Confession of Indebtedness, subject to the Share Ratio B, with the exception of amortizations as a result of an Event of Migration (“
Optional Early Amortization
”).
|
7.23.1
|
The amounts paid under Optional Early Amortization shall always be allocated proportionally to the value of the installments falling due on the Nominal Unitary Value listed in Clause 7.22 above, automatically and independently of any additional formality (including independently of any additions to this Deed of Issuance), the amortization payment dates of the Nominal Unitary Value being unchanged.
|
7.24
|
Optional Acquisition
. The Company may, at any time, acquire Debentures in Circulation, provided that (i) it observes the provisions of Article 55, paragraph 3, of Brazilian Corporation Law, Sections 13 and 15 of Securities Commission Instruction 476 and the applicable Securities Commission regulations; and (ii) the optional acquisition of the Second Issuance Debentures and amortization of the Secured Obligations related with the Confession of Indebtedness, subject to the Share Ratio B. The Debentures acquired by the Company shall be canceled (“
Optional Acquisition
”).
|
7.25
|
Event of Migration
. It is hereby agreed that, in order to enable the occurrence of one or more Event of Migration as set forth in the Confession of Indebtedness Agreement, the Company may make redemptions and amortizations with respect to the Debentures that are necessary for the Confession of Indebtedness, by means of compliance with the conditions precedent set forth in the Confession of Indebtedness Agreement, to represent the entire debit balance of the Debentures. For the purpose of clarification, any Event of Migration can only be performed by replacing the credit arising from the Debentures object of the Event of Migration by Confession of Indebtedness, with no payment in cash or property.
|
7.26
|
Mandatory Early Amortization
. The Company is obliged to (“
Mandatory Early Amortization
”):
|
I.
|
until December 26, 2017, to apply the amount in Reais equivalent to USD100,000,000.00 (one hundred million dollars) converted pursuant to Clause 7.26.1 below, to amortize (a) portion of the outstanding balance of the Secured Obligations (limited to 98% (ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the incorporation of the Remuneration occurred on December 20, 2017 until the date of the effective payment; and (b) the outstanding balance of the Secured Obligations regarding the Debentures, observing the Amortization Ratio, without any premium or penalty;
|
II.
|
until December 26, 2017, to apply the amount in Reais, converted in accordance with Clause 7.26.1 below, equivalent to all amounts received by the Company as a result of the Business Combination in excess of USD 100,000,000 (one hundred million dollars) (limited in any case to USD 200,000,000 (two hundred million dollars)) to amortize (a) portion of the outstanding balance of Secured Obligations related with the Debentures (limited to ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the effective payment date); and (b) the outstanding balance of the Secured Obligations regarding the First Issuance, at Amortization Ratio, without any premium or penalty; and
|
III.
|
within three (3) Business Days as of the date of an Equity Event, to be informed by the Company and/or any Debenture Holder to the Fiduciary Agent, of the amount available to the Company or to Boulevard Cayman after deduction of transaction expenses duly evidenced and related to the Equity Event (whose transaction expenses report will be sent by the Company together with the respective vouchers, together with the communication referred to in this paragraph), including but not limited to any fees, commissions and fees paid to the financial advisors, legal advisors and auditors involved in the Equity Event, to apply the amount resulting from the formula below as calculated by the Fiduciary Agent (“
Equity Event Amortization Amount
”) to amortize (a) portion of the outstanding balance of the Secured Obligations related with the Debentures (limited to 98% (ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of immediately previous Remuneration, as the case may be, until the date of actual payment); and (b) the outstanding balance of the Secured Obligations regarding the Debentures, observing the Amortization Ratio, without any premium or penalty.
|
7.26.1
|
The amount of Mandatory Early Amortization calculated by Company and verified by the Fiduciary Agent as provided in Clause 7.26 above shall be converted into Reais (BRL) according to the PTAX Rate, sale option, disclosed on the Business Day immediately preceding the payment date of the Mandatory Early Amortization.
|
7.26.2
|
The Company shall send prior notice to the Debenture Holders (by publication of notice pursuant to Clause 7.36 below or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent), the Fiduciary Agent, the Bookeeping, the Settlement Bank and to B3, three (3) Business Days from the date of any Mandatory Early Amortization provided for in this Clause 7.26.
|
7.26.3
|
The amounts paid under Mandatory Early Amortization shall always be allocated proportionally to the value of the installments falling due on the Nominal Unitary Value listed in Clause 7.18 above, automatically and independently of any additional formality (including independently of any additions to this Deed of Issuance), the amortization payment dates of the Nominal Unitary Value being unchanged.
|
7.27
|
Mandatory Early Amortization
–
Event of Migration
. Upon the occurrence of each Event of Migration, the Company shall perform the amortization of the Secured Obligations regarding the Debentures (limited to 98% (ninety-eight percent) of the debit balance of the Nominal Unitary Value of the Debentures, plus Remuneration, calculated
pro rata temporis
, from the Issuance Date or the date of payment or incorporation of Remuneration immediately preceding, as the case may be, until the date of actual payment) for the exact amount of the Event of Migration in question, provided that, if the Event of Migration is in full for the Secured Obligations regarding the Debentures, the provisions of Clause 7.22 above (“
Mandatory Early Amortization - Event of Migration
”) shall apply.
|
7.27.1 |
The amounts paid under Mandatory Early Amortization - Event of Migration shall always be allocated proportionally to the value of installments falling due for amortization of the Nominal Unitary Value in Clause 7.18 above, automatically and independently of any additional formality (including independently of any amendment to this Deed of Issuance), and the amortization of the Nominal Unitary Value will be unchanged.
|
7.28
|
Bonus For Performance
. If the Company is in compliance with the Secured Obligations regarding the Debentures, the
Secured Obligations regarding the Second Issuance
and the Secured Obligations related to the Confession of Indebtedness and upon payment of any amounts under Mandatory Early Amortization shall be applied on the same date of payment of the respective Mandatory Early Amortization, on the outstanding balance of the Nominal Unitary Value, after payment of the respective Mandatory Early Amortization, debt forgiveness equivalent to 25% (twenty five percent) of the total amount received by the Mandatory Debenture Holders Early Amortization (“
Bonus For Performance
”), passing the Nominal Unitary Value to reflect the debt forgiveness granted through the Bonus For Performance from the date of payment of Mandatory Early Amortization. For clarification purposes, the Bonus For Performance will be applied according to the following mechanics: (i) the Nominal Unitary Value (after Mandatory Early Amortization) will be multiplied by the number of Debentures; (ii) the value obtained in “i” above shall be reduced by the value of the Bonus For Performance; and (iii) the amount obtained in “ii”, shall be divided by the number of Debentures, with the new Nominal Unitary Value being reported. For the purposes of this Clause, the Company undertakes to present to the Fiduciary Agent a written statement that is in full compliance with the Secured Obligations regarding the Debentures, the
Restricted Offer regarding the First Issuance
and the Secured Obligations related with the Confession of Indebtedness.
|
7.29
|
Right to Receiving Payments
. There will be entitled to any amount due to the Debenture Holders under this Deed of Issuance those who are Debenture Holders at the closing of the Business Day immediately preceding to the respective date of payment.
|
7.30
|
Place of Payment
. Payments regarding Debentures and any other amounts due by the Company and/or by any of the Guarantors, under this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures, will be made (i) by the Company, relatively to payments referring to the Nominal Unitary Value, to the Remuneration and to the Delay Penalties, and relatively to the Debentures that are electronically deposited with B3, through B3; (ii) by the Company, in the remaining cases, through the Bookkeeper or at the Company’s head offices, as the case may be; or (iii) by the Guarantors, in any case, through the Bookkeeper or at the head offices/domicile of the Guarantors, as the case may be.
|
7.31
|
Extension of deadlines
. Deadlines referring to the payment of any obligation described in this Deed of Issuance will be extended until the 1
st
(first) Subsequent Business Day, if they coincide with a non-Business Day, without being due any addition to the amounts to be paid.
|
7.32
|
Delay Penalties
. If the payment of any amount due by the Company and by the Guarantors to the Debenture Holders under this Deed of Issuance should be overdue, on any and all amounts overdue, there shall accrue, additionally to the payment of Remuneration, calculated pro rata
temporis
, since the date of default until effective payment, regardless of notice, subpoena or court order, (i) interest of 1% (one percent) per month or fraction of month, calculated pro rata
temporis
, since the date of default until effective payment; and (ii) late payment penalty of 2% (two percent) (“
Delay Penalties
”).
|
7.33
|
Forfeiture of Right to Additions
. Failure of the Debenture Holder to appear to receive the amount corresponding to any Pecuniary Obligations in the dates set forth in this Deed of Issuance or in any communication made or notice published under this Deed of Issuance shall not entitle it to any addition in the period of the delay in receiving, provided, however, that the rights until the respective maturity date or payment, if payment is overdue, are maintained.
|
7.34
|
Tax Immunity
. If any Debenture Holder has immunity or exemption from taxation, it must forward to the Settling Bank or to the Bookkeeper, as the case may be, no later than 10 (ten) Business Days prior to the estimated date for the payment of amounts related to Debentures, documents that prove such immunity or exemption, or else payments will be made after withholding amounts due pursuant to tax law in force.
|
7.35
|
Early maturity
. Subject to the provisions of Clauses 7.35.1 to 7.35.6 below, the Fiduciary Agent shall declare as having matured early obligations connected with the Debentures, and demand immediate payment, by the Company and by the Guarantors, of the outstanding balance of the Nominal Unitary Value of the Debentures, plus the Remuneration, calculated pro rata
temporis
, since the date of Issuance or the date of payment or accrual of Remuneration immediately preceding, as the case may be, until effective payment, notwithstanding, when applicable, the Delay Penalties, if any of the events described in Clauses 7.35.1 below e 7.35.2 below (each an “
Event of Default
”) should happen.
|
7.35.1
|
There constitute Events of Default that cause the automatic maturity of the obligations connected with the Debentures, regardless of notice, subpoena, or court order, with the provisions of Clause 7.35.3 below applying:
|
I.
|
default by the Company and/or by any of the Guarantors, of any Pecuniary Obligation relating to Debentures and/or under this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, on the respective date of payment (including payment of the Mandatory Early Amortization pursuant to Clause 7.26 above), not solved within 1 (one) Business Day;
|
II.
|
invalidity, nullity or unenforceability of this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures;
|
III.
|
liquidation, dissolution, or extinction of the Company, except if by virtue of a corporate operation that does not constitute an Event of Default, as permitted by Clause 7.35.2 below, item VI;
|
IV.
|
(a) bankruptcy of the Company; (b) filing for bankruptcy by the Company; (c) bankruptcy of the Company demanded by third parties, not contested in due time; or (d) filing for judicial or extrajudicial reorganization by the Company, regardless of the response to such request;
|
V.
|
conversion of the Company’s corporate type from corporation by shares to any other corporation type, as per articles 220 through 222 Brazilian Corporation Law;
|
VI.
|
failure to complete the Fulfillment of the Business Combination until December 25, 2017, or its fulfillment in any other way than that of the Business Combination Agreement;
|
VII.
|
early maturity of the Secured Obligations related with the Confession of Indebtedness and/or of the Restricted Offer regarding the Second Issuance; or
|
VIII.
|
failure to establish the Fiduciary Disposal of Shares on 100% (one hundred percent) of shares issued by the Company until July 31, 2018.
|
7.35.2
|
There constitute Events of Default that may cause the maturity of the obligations connected with the Debentures, as per Clause 7.35.4 below, any of the events set forth in the law and/or any of the following Events of Default:
|
I.
|
default, by the Company and/or by any of the Guarantors, of any non-pecuniary obligation under this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, not solved within 15 (fifteen) Business Days as of the date of the respective default, and the time granted in this subsection does not apply to the obligations for which a grace period has been provided or for any of the other Events of Default;
|
II.
|
failure to establish any of the Guarantees (except for Fiduciary Disposal of Shares on shares issued by the Company), pursuant to this Deed of Issuance, any of the Guarantee Agreements, in the Confession of Indebtedness Agreement and/or in the Deed of Second Issuance, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation or (ii) 51% (fifty one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
III.
|
assignment or any form of transfer to third parties, in whole or in part, by the Company and/or by any of the Guarantors, of any of their obligations under this Deed of Issuance and/or of any of the other Documents of the Secured Obligations regarding the Debentures, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
IV.
|
liquidation, dissolution, or extinction of any of the Guarantors, except if by virtue of a corporate operation that does not constitute an Event of Default, pursuant to subsection VI below;
|
V.
|
(a) bankruptcy of any of the Guarantors and/or of any Controlled Company; (b) filing for bankruptcy by any of the Guarantors or by any Controlled Company; (c) bankruptcy of any of the Guarantors and/or of any Controlled Company demanded by third parties, not contested in due time; or (d) filing for judicial or extrajudicial reorganization by the Guarantors and/or any Controlled Company, as applicable, regardless of the response to such request;
|
VI.
|
split, merger, acquisition (in which such company is acquired) or acquisition of shares of the Company and/or of any of the Guarantors except if (provided the conditions below do not apply to any of the goods under Surety) (a) previously authorized by Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in second calling; or (b) exclusively in case of an acquisition (in which said corporation is acquired) or the acquisition of shares of Guarantors, the resulting entity grants Surety under this Issuance Deed within 30 (thirty) days as of the connected corporate act;
|
VII.
|
capital decrease of the Company, except:
|
(a)
|
if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling, as per article 174, paragraph 3
rd
, of the Brazilian Corporation Law; or
|
(b)
|
if for the absorption of losses;
|
VIII.
|
default, after any applicable grace periods, by the Company and/or by any of the Guarantors (however acting as guarantor), of any Financial Obligation in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM;
|
IX.
|
incorrection, in any relevant aspect, or inveracity of any of the statements made by the Company and/or by any of the Guarantors in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures;
|
X.
|
regarding any asset under any of the Guarantees and/or any of the rights applicable thereto, pursuant to the Guarantee Agreements, as applicable, disposal, sale, assignment, transfer, exchange, contribution, giving in payment, receivables securitization (provided that, for clarification purposes, this prohibition does not include securitization of receivables from service agreements and/or sale of the Company’s products) or any other form of transfer, including through capital reduction, or the creation of any Encumbrance (except for the Guarantees), or permission for any of the above acts to take place, in any of the cases of this Subsection, whether through payment or not, in whole or in part, directly or indirectly, even if for or in favor of a related party, except as provided for in the Guarantee Agreements;
|
XI.
|
(a) Boulevard Cayman ceasing to Control, direct or indirect, of the Company; or (b) change to or transfer of direct Control of any of the Controlled Companies and/or of any of the Guarantors, except, in any case, if (1) previously authorized by Debenture Holders representing, at least, (x) 60% (sixty percent) of the Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (y) 51% (fifty one percent) of the Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling; or (2) in case of change to or transfer of direct Control of any of the Guarantors and/or of any of the Controlled Companies, all shares issued by such Guarantors and/or Controlled Companies remain, indirectly, the property of the Company;
|
XII.
|
Boulevard Cayman delisting;
|
XIII.
|
change to the Company’s corporate activities, representing a significant change in the core business of the Company, any of the Guarantors and/or any Controlled Company, as set forth in their articles of association or by-laws, as the case may be, in force on the Issuance Date, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
XIV.
|
challenge of securities against the Company and/or any of the Guarantors in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM, unless, within 10 business days of the respective occurrence (i) has been validly verified by the Company and or by Guarantora that the protest was effected by mistake or bad faith of third parties; or (ii) it is canceled, suspended or terminated by the Company and/or the respective Guarantor, the case may be, or (ii) sufficient Guarantees are provided to cover debt in court;
|
XV.
|
default, by the Company or by any Guarantor, of any final and unappealable court decision and/or of any arbitral decision not subject to an appeal, in an individual amount equal to or greater than BRL 20,000,000.00 (twenty million Brazilian reals), or in an aggregate amount equal to or greater than BRL 40,000,000.00 (forty million Brazilian reals), updated yearly, as of December 20, 2017, by the IGPM, or the equivalent in foreign currency, not solved within 10 (ten) days as of the date of the respective default;
|
XVI.
|
changes to the terms and conditions of the Confession of Indebtedness and/or of the Second Issuance Debentures, except if previously authorized by Debenture Holders representing, at least, (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling;
|
XVII.
|
expropriation, confiscation, or any other act by any governmental body of any jurisdiction resulting in the loss, by the Company, by any of the Guarantors, and/or by any Controlled Company, of ownership and/or direct or indirect possession of at least 30% (thirty percent) of its assets;
|
XVIII.
|
distribution and/or payment, by the Company, of dividends, net equity interest, and any other profit distributions, if (a) the Company and/or any of the Guarantors have delayed fulfilling any of their obligations under this Issuance Deed and/or any other of the Debenture Guaranteed Obligation Documents; or (b) any Default Event has occurred and is continuing; except (x) for the compulsory dividends set forth in article 202 of the Brazilian Corporation Law, as per the Company’s by-laws in force on the Date of Issuance (which, if distributed to the Company, must be reinvested by the shareholders as capital increase); and (y) for dividends distributed to Boulevard Cayman, exclusively as they are necessary for its capitalization, and only in the amount necessary, (i) for payment to members of its Board of Directors, in a reasonable amount that must be disclosed to the market; and (ii) for Boulevard Cayman and HoldCo maintenance costs and expenses, including those of a public company and with auditors;
|
XIX.
|
default, by the Company and/or by any of the Guarantors, of any obligation relating to the Confession of Indebtedness and/or set forth in the Confession of Indebtedness Agreement and/or in any of the other Documents das Secured Obligations related with the Confession of Indebtedness not solved in their respective grace periods (if applicable);
|
XX.
|
default, by the Company and/or by any of the Guarantors, of any obligation relating to Second Issuance Debentures and/or set forth in the Deed of Second Issuance and/or in any of the other Documents of the Restricted Offer regarding the Second Issuance not solved in their respective grace periods (if applicable);
|
XXI.
|
default for any time longer than 2 (two) Business Days, by the Company and/or by any of the Grantors, of any Financial Obligation, whose creditor be a Debenture Holder in possession of at least 40% (forty percent) of Debentures in Circulation or companies in the same group as such Debenture Holder; or
|
XXII.
|
failure, by the Company, to comply with any of the following financial indices (collectively, the “
Financial Indices
”), to be assessed by the Company’s administration every six months, on June 30 and on December 31 of every year, and monitored by the Fiduciary Agent until 5 (five) Business Days after the date of receipt, by the Fiduciary Agent, of the information detailed in Clause 8.1 below, subsection III, item (i), based on the Company’s Consolidated Audited Financial Statements, starting with the Company’s Consolidated Audited Financial Statements as of December 31, 2018:
|
(a)
|
the quotient of the division of the Net Debt by the EBITDA must be equal to or less than the following indices, based on the Company’s Consolidated Audited Financial Statements at the end of the following reporting years:
|
Last day of the fiscal year
|
Net Debt/EBITDA index
|
December 31, 2018
|
4.0
|
December 31, 2019 onwards
|
3.5
|
(b)
|
as of December 31, 2019 (inclusive), for three consecutive semesters, the quotient of the division of the Net Debt by the EBITDA must not be greater than 3.0;
|
(c)
|
the ICSD index must be equal to or greater than 1.2, if the Net Debt/EBITDA index is greater than 2.8, and must be equal to or greater than 1.0, if the Net Debt/EBITDA index is equal to or less than 2.8.
|
7.35.3
|
Upon the occurrence of any of the Default Events set forth in Clause 7.35.1 above, obligations connected with the Debentures will mature automatically, regardless of notice, subpoena or court order.
|
7.35.4
|
Upon the occurrence of any of the Default Events set forth in Clause 7.35.2 above, the Fiduciary Agent must, including for the purposes of Clause 9.20, call, within 2 (two) Business Days of the date it becomes aware of the event, a general meeting of Debenture Holders, which must be held within the minimum legally permitted time. Except for the proviso of Clause 7.35.2, subsection II, above, if, at such meeting, Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, under the terms of a general meeting of Debenture Holders held in second calling, decide not to regard the Debentures as having matured early, the Fiduciary Agent must not declare the early maturity of the obligations connected with the Debentures; otherwise, or if no meeting is held in second calling, the Fiduciary Agent must immediately declare the early maturity of the obligations connected with the Debentures.
|
7.35.5
|
Upon the occurrence of the early maturity of the obligations connected with the Debentures, the Company shall be required to redeem the entirety of Debentures (the Guarantee notwithstanding), with their subsequent canceling, through the payment of the outstanding balance of the Debentures Unit Nominal Value, plus the Compensation, calculated
pro rata temporis
, since the Issuance Date or the immediately preceding payment or Compensation accrual date, as the case may be, until effective payment, notwithstanding the payment of Late Payment Penalties, whenever applicable, and any other amounts that may be due by the Company and/or by the Guarantors under this Issuance Deed and/or any of the other Debenture Guaranteed Obligation Documents, up to 3 (three) Business Days as of the early maturity date. If this requirement is not met, the Company will also be subject to Late Payment Penalties. If the payment provided for in this Clause is made in any date other than the date of declaration of the early maturity of the obligations connected with the Debentures, such payment must be made as per Clause 7.30, items (ii) and (iii) above, as applicable.
|
7.35.6
|
Upon the occurrence of the early maturity of the obligations connected with the Debentures, amounts received in payment for obligations connected with the Debentures, including those connected with the foreclosure or enforcement of any of the Guarantees, as they are received, must be applied toward the amortization or, if possible, to pay the outstanding balance of obligations connected with the Debentures. If such amounts are not enough to satisfy all such obligations, such amounts must be allocated in the following order, in such manner that, once the first tier has been paid up, the remainder is allocated to the second tier, and so forth: (i) any amounts owed by the Company and/or by any of the Guarantors under this Issuance Deed and/or any of the other Debenture Guaranteed Obligation Documents (including compensation and expenses incurred into by the Fiduciary Agent) that are not the amounts referred to in items (ii) and (iii) below; (ii) Compensation, Late Payment Penalties, and other charges due under the obligations connected with the Debentures; and (iii) outstanding balance of the Debentures Unit Nominal Value. The Company and the Guarantors shall remain liable for the outstanding balance of unpaid obligations connected with the Debentures, notwithstanding the Compensation, Late Payment Penalties, and other charges due under the obligations connected with the Debentures, as long as it is not paid, and it shall constitute an enforceable debt for extrajudicial collection or judicial enforcement.
|
7.35.7
|
Operationalization of early maturity shall follow the proceedings described in the B3 Operations Manual.
|
7.36
|
Publicity
. All acts and decisions concerning the Debentures must be communicated, under the form of notice, in the Sao Paulo State Official Gazette and in the newspaper “Gazeta de Sao Paulo,” always following the performance or the occurrence of the act to be divulged. The Company may choose another newspaper that has broad, nationwide circulation, through written notice to the Fiduciary Agent, and publication, under the form of notice, in the newspaper being replaced.
|
8.
|
Additional Obligations of the Company and the Guarantors
|
8.1
|
The Company and the Guarantors are jointly obliged to:
|
I.
|
exclusively regarding the Company, make available on its website and supply to the Fiduciary Agent:
|
(i)
|
on the first date between 3 (three) months after the end of each fiscal year or their effective publication date, copy of the Company’s consolidated financial statements, audited by the Indepedent Auditor, relating to the relevant fiscal year, prepared in accordance with the Brazilian Corporations Act and pursuant to the rules issued by the CVM (the “Company’s Consolidated Audited Financial Statements”); and
|
(ii)
|
on the first date between 45 (forty-five) days after the end of each of its fiscal quarters (except for its last fiscal quarter) and their effective publication date, copy of the Company’s consolidated financial statements with limited review by the Independent Auditor, relating to the first quarter, prepared in accordance with the Brazilian Corporations Act and pursuant to the rules issued by the CVM (the “
Company’s Consolidated Reviewed Financial Statements
,” being the Company’s Consolidated Audited Financial Statements and the Company’s Consolidated Reviewed Financial Statements referred to jointly as the “
Company’s Consolidated Financial Statements
”);
|
II.
|
exclusively with regard to the Guarantors, supply to the Fiduciary Agent, on the first date between 3 (three) months after the end of each of its fiscal year and their effective publication date, copy of the Guarantors’ consolidated financial statements, relating to to the relevant fiscal year, prepared in accordance with the Brazilian Corporation Law and pursuant to the rules issued by the Securities Commission (the “
Guarantors’ Consolidated Financial Statements
”);
|
III.
|
supply to the Fiduciary Agent:
|
(i)
|
exclusively regarding the Company, up to 5 (five) Business Days after the dates on subsection I above, items (i) and (ii), specific appraisal report of the Financial Indices, prepared by the Company’s administration, containing a spreadsheet with all the necessary data to support the calculation of the Financial Indices, or else the Fiduciary Agent would be unable to monitor the Financial Indices, provided that the latter may demand from the Company any additional information it may deem relevant, as well as additional documents that prove the assessment and the calculation of such indices—which must be produced by the Company within 10 (ten) Business Days of such request;
|
(ii)
|
exclusively regarding the Company, up to 5 (five) Business Days after the dates on subsection I above, items (i) and (ii), affidavit signed by the Company’s legal representatives, as per its by-laws, attesting (i) the truthfulness and the lack of errors of the Financial Indices; (ii) that all provisions in this Deed of Issuance and in all other Documents of the Secured Obligations regarding the Debentures remain in force; (iii) the complete lack of any Event of Default and the lack of default of any obligation provided for in this Deed of Issuance and in all other Documents of the Secured Obligations; (iv) that its assets remain duly insured; and (v) that no actions contrary to its by-laws have been taken;
|
(iii)
|
exclusively regarding the Guarantors, within until 5 (five) Business Days after the dates on subsection II above
,
affidavit signed by the Guarantors’ legal representatives, as per their by-laws, attesting (i) that all provisions in this Deed of Issuance and in all other Documents of the Secured Obligations regarding the Debentures remain in force; (ii) the complete lack of any Event of Default and the lack of default of any obligation provided for in this Deed of Issuance and in all other Documents of the Secured Obligations; (iii) that its assets remain duly insured; and (iv) that no actions contrary to its by-laws have been taken;
|
(iv)
|
exclusively regarding the Company, within until 30 (thirty) days before the deadline for filing, with CVM, the annual report of the Fiduciary Agent, as per CVM Instruction 583, financial information, and organizational chart of the Company’s group (which shall contain all its Affiliates and members of the Control group at the end of each fiscal year) and other information necessary for the preparation of the reports that may be requested in writing by the Fiduciary Agent;
|
(v)
|
within until 2 (two) Business Days as of the date in which they are made, notices to the Debenture Holders;
|
(vi)
|
within until 2 (two) Business Days as of the date of occurrence, information on (i) any default, by the Company and/or by any of the Guarantors, of any obligation described in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures; and/or (ii) of any Event of Default;
|
(vii)
|
within until 2 (two) Business Days as of the notification date, information on any event or situation that may cause a Relevant Adverse Effect in the Company, in any of the Guarantors and/or in any Controlled Company;
|
(viii)
|
within until 5 (five) Business Days as of the date de receipt of the respective request, information and/or documents that may be requested by the Fiduciary Agent;
|
(ix)
|
within until 5 (five) Business Days as of the date:
|
(i)
|
of the respective enrollment in JUCESP, (1) one original of this Deed of Issuance or of the respective amendment to this Deed of Issuance duly enrolled in JUCESP; and
|
(ii)
|
of the respective registration or amendment before notaries referred to in Clause 3.1 above, subsection II, item (ii), one original of this Deed of Issuance or of the respective amendment to this Deed of Issuance registered or amended before such notaries;
|
(x)
|
until January 30, 2018 originals, or certified copies of the documents listed on Annex I to this Deed of Issuance;
|
(xi)
|
power of attorney substantially in the form of Anexo II to this Deed of Issuance, valid for 1 (one) year as of the present date, with the commitment of renewing it yearly no less than 3 (three) months as of the respective expiration date, until clearance of all Secured Obligations, granting powers for the Fiduciary Agent and other parties to rectify any issues stemming from an Event of Default, at the expense of the Company, as per Annex I, if any pending matters have not yet been taken care of by the Company;
|
IV.
|
meet, and have Controlled Companies meet, laws, regulations, administrative rules and orders by governmental bodies or courts applicable to their activities, except for those whose applicability is questioned in good faith administratively and/or judicially or whose non-compliance cannot cause a Relevant Adverse Effect;
|
V.
|
meet, and have its Controllers, Controlled Companies, sister companies, companies under common Control, employees e and subcontractors meet, the Anticorruption Law, as well as (a) maintain policies and internal procedures aimed at the publication and the integral compliance with the Anticorruption Law; (b) make the Anticorruption Law plainly clear to all professionals with which it enters into a relationship, prior to the commencement of the relationship; (c) abstain from practicing acts of corruption and acting in any way that is harmful to the public administration, national or foreign, in its own interest or for the benefit of third parties, exclusively or not; and (d) within until 2 (two) Business Days as of the notification date, communicate the Debenture Holders and the Fiduciary Agent of any act or fact that violates the Anticorruption Law;
|
VI.
|
maintain, as well as Controlled Companies, timely payment of all tax obligations (local, state, and federal), as well as labor, social security, environmental, and any other obligations imposed by law, except for those whose applicability is questioned in good faith administratively and/or judicially or whose non-compliance cannot cause a Relevant Adverse Effect;
|
VII.
|
maintain, and make Controlled Companies maintain, always valid, effective, and in perfect order, all licenses, authorizations, permissions and approvals, including environmental, applicable to their activities, except for those whose absence cannot cause a Relevant Adverse Effect;
|
VIII.
|
maintain, and make Controlled Companies maintain, adequate insurance for its relevant goods and assets, per usual market practices;
|
IX.
|
maintain in perfect order, all licenses, authorizations, permissions and approvals, needed for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of all obligations hereunder and thereunder;
|
X.
|
hire and maintain, at its expenses, service providers necessary for the fulfillment of the obligations described in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures, including the Fiduciary Agent, the Bookkeeper, the Settling Bank, the Independent Auditor, the distribution environment of the Debentures in the primary market (MDA) and the dealing environment of the Debentures in the secondary market (CETIP21);
|
XI.
|
pay all taxes on the Debentures that are the responsibility of the Company and, if applicable, of the Guarantors;
|
XII.
|
make (a) the payment of the Remuneration of the Fiduciary Agent, pursuant to Clause 9 below; and (b) if so requested by the Fiduciary Agent, payment of expenses duly reported by the Fiduciary Agent, pursuant to Clause 9 below;
|
XIII.
|
notify, on the same date, the Fiduciary Agent of the issuance of invitation, by the Company, of any Debenture Holders’ general meeting;
|
XIV.
|
call, within until 2 (two) Business Days, Debenture Holders’ general meeting to discuss any of the topics that may interest the Debenture Holders, if the Fiduciary Agent should do it, pursuant to the law and/or this Deed of Issuance, but fails to do so in the relevant time;
|
XV.
|
appear, through its representatives, at the Debenture Holders’ general meeting, whenever invited;
|
XVI.
|
maintain equal treatment and
pari passu
between the Confession of Indebtedness, the Second Issuance Debentures and the Debentures, including (but not limited to) (i) except in case of (a) payments as Mandatory Early Amortization, which must observe the Amortization Proportion, and (b) amortizations or redemptions stemming from a Migration Event, carry out any payments of the Secured Obligations related with the Confession of Indebtedness, of the Restricted Offer regarding the Second Issuance and of the Secured Obligations regarding the Debentures, by the following proportion: (a) 45.6% (forty-five point six percent percent) for Secured Obligations regarding the Second Issuance; and (b) 54.4% (fifty-four point four percent) for Secured Obligations related with the Confession of Indebtedness e Restricted Offer regarding the Debentures (keeping the proportion between the Secured Obligations related with the Confession of Indebtedness and the Restricted Offer regarding the Debentures); and (ii) supply the same information and in the same time; and
|
XVII.
|
exclusively regarding the Company, notwithstanding the other obligations set forth above or other obligations expressly provided for in the regulations in force and in this Deed of Issuance, pursuant to article 17 of CVM Instruction 476:
|
(i)
|
(a) maintain shares issued by the Company or by na Affiliate listed in organized markets in Brazil or abroad; and (b) meet all CVM requirements to maintain shares as listed with the relevant registrations before CVM and/or competent authorities;
|
(ii)
|
prepare the Company’s consolidated financial statements relating to each fiscal year, in compliance with the Brazilian Corporation Law and with CVM’s regulations;
|
(iii)
|
submit the Company’s consolidated financial statements relating to each fiscal year to independent auditor registered with the CVM;
|
(iv)
|
within 3 (three) months as of the date of closure of its fiscal year, divulge on its website and send to B3 the Company’s consolidated financial statements relating to each fiscal year, along with explanatory notes and independent auditors’ report;
|
(v)
|
for 3 (three) years as of the respective date of publication, maintain documents mentioned on item (iv) above on its website;
|
(vi)
|
follow the rules of CVM Instruction 358, relatively to the duty of confidentiality and insider trading prohibitions;
|
(vii)
|
disclose, in its website, the occurrence of any relevant act or fact, as defined on article 2 of CVM Instruction 358, communicating immediately to the Fiduciary Agent, to the Leading Coordinator and to B3;
|
(viii)
|
supply all information requested by CVM and by B3; e
|
(ix)
|
disclose, in its website, the annual report and other communications sent by the Fiduciary Agent on the same date of their receipt, meeting the requirements of item (v) above.
|
9.
|
Fiduciary Agent
|
9.1
|
The Company shall appoint and constitute the Fiduciary Agent of the Issue the Fiduciary Agent, qualified in the preamble to this Deed of Issuance, which it signs in that capacity and, in this act and in the best form of law, accepts the appointment to, under the terms of the law and this Deed of Issuance, to represent the fellowship of the Debenture Holders, stating that:
|
I.
|
is a Financial Institution duly organized, constituted and existing in the form of a corporation, in accordance with Brazilian laws;
|
II.
|
is duly authorized and has obtained all the authorizations, including those applicable, legal, corporate, regulatory and third party, necessary for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of all obligations here provided, and all legal, corporate, regulatory and third-party requirements demanded;
|
III.
|
the legal representative(s) of the Fiduciary Agent who signs this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures have, as the case may be, corporate powers and/or delegates to assume, on behalf of the Fiduciary Agent, the obligations here and there provided and, being authorized, have (have) the legitimately granted powers, being the respective mandate(s) in full force;
|
IV.
|
this Deed of Issuance and the other Documents of the Secured Obligations in relation to the Debentures and the here and there provided for obligations constitute licit, valid, binding and effective obligations of the Fiduciary Agent, enforceable in accordance with its terms and conditions;
|
V.
|
The execution, the terms and conditions of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of the obligations here and there provided for (a) do not violate the Fiduciary Agent’s bylaws; (b) does not infringe any agreement or instrument to which the Fiduciary Agent is a party and/or for which any of its assets is subject; (c) does not infringe any legal or regulatory provision upon which the Fiduciary Agent and/or any of its assets is subject; and (d) does not infringe any administrative, judicial or arbitral order, decision or judgment affecting the Fiduciary Agent and/or any of its assets;
|
VI.
|
accepted the function for which it was appointed, fully assuming the duties and attributions provided for in the specific legislation and in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures;
|
VII.
|
is fully aware of and accepts this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures and all its terms and conditions;
|
VIII.
|
verified the veracity of the information contained in this Deed of Issuance and in the other Documents of the Secured Obligations to the Debentures, based on information provided by the Company and by the Guarantors, being certain that the Fiduciary Agent has not conducted any independent or additional verification procedure the veracity of the information presented;
|
IX.
|
is aware of the applicable regulations arising from the Central Bank of Brazil and CVM;
|
X.
|
does not have, under the penalties of law, any legal impediment, pursuant to article 66, paragraph 3, of Brazilian Corporation Law, CVM Instruction 583 and other applicable rules, to perform the function conferred upon it;
|
XI.
|
is not in any of the situations of conflict of interest foreseen in Article 6 of CVM Instruction 583;
|
XII.
|
on the date of execution of this Deed of Issuance, according to the organization chart sent by the Company, the Fiduciary Agent has identified that it does not provides services of Fiduciary Agent in other public or private securities issued by the Company or a company belonging to the same group as the Company.
|
9.2
|
The Fiduciary Agent shall exercise its functions as from the date of execution of this Deed of Issuance or of any amendment relating thereto, and shall remain in the exercise of its functions until the full discharge of all obligations under this Deed of Issuance and of the other Documents of the Secured Obligations against the Debentures, or until their replacement.
|
9.3
|
In the event of absence, impediment, resignation, removal, intervention, judicial or extrajudicial liquidation, bankruptcy, or any other case of vacancy of the Fiduciary Agent, the following rules:
|
I.
|
the Debenture Holders may substitute the Fiduciary Agent and appoint their substitute at any time after the close of the Offer, at a general meeting of Debenture Holders specially convened for such purpose;
|
II.
|
if the Fiduciary Agent cannot continue to perform its functions due to circumstances beyond this Deed of Issuance, it shall immediately notify the Company and the Debenture Holders by calling a general meeting of Debenture Holders, requesting its replacement;
|
III.
|
if the Fiduciary Agent relinquishes its functions, it shall remain in office until a substitute institution is appointed by the Company and approved by the general meeting of Debenture Holders and effectively assumes its functions;
|
IV.
|
30 (thirty) days from the date of the event which determines the Debenture Holders’ General Meeting, shall be held for the choice of the new Fiduciary Agent, which shall be called by the Fiduciary Agent itself to be replaced, and may be called by Debenture Holders representing at least 10% (ten percent) of the Debentures in Circulation; in the event that the call is not made within fifteen (15) days before the expiration of the term herein, it shall be incumbent upon the Company to do so; in exceptional cases, the CVM may call the general meeting of Debenture Holders to choose the new Fiduciary Agent or appoint a provisional substitute;
|
V.
|
The replacement of the Fiduciary Agent shall be informed to CVM within up to seven (7) Business Days counted from the date of registration of the amendment to this Deed of Issuance pursuant to Clause 3.1 above, item II, together with the other information required in article 5, caput and paragraph 1, of CVM Instruction 583;
|
VI.
|
the payments to the replaced Fiduciary Agent will be realized observing the proportionality to the period of the effective provision of the services;
|
VII.
|
the substitute Fiduciary Agent shall be entitled to the same Remuneration as the former if (a) Company has not agreed to the new Remuneration value of the Fiduciary Agent proposed by the general meeting of Debenture Holders referred to in item IV above; or (b) the Debenture Holders’ General Meeting referred to in item IV above does not deliberate on the matter;
|
VIII.
|
the substitute Fiduciary Agent shall, immediately upon its appointment, communicate this fact to the Company and to the Debenture Holders pursuant to Clauses 7.36 and 13 below; and
|
IX.
|
the norms and precepts issued by CVM apply to the Fiduciary Agent’s replacement hypothesis.
|
9.4
|
The Fiduciary Agent shall be liable for the performance of the duties and powers incumbent upon it, under the terms of the current legislation and of this Deed or, corresponding to an annual remuneration of BRL 20,000.00 (twenty thousand reais), due by the Company, being the first installment due on the 5
th
(fifth business day) from the date of execution of this Deed of Issuance, and the remainder on the same day of the subsequent years until the full liquidation of the Debentures;
|
9.5 |
If, on the date of payment of each annual installment, the Debentures are held by a single investor, a discount of 25% (twenty-five percent) shall be granted on the amount of the annual installment mentioned in Clause 9.4. above.
|
9.6 |
In case of default in the payment of the Debentures or restructuring of the Debentures conditions after the Issuance, the Fiduciary Agent shall additionally be liable to the amount of BRL 500.00 (five hundred reais) per man-hour of work destined: (i) to perform the guarantees: (ii) attendance at Debenture Holders’ General Meetings; and (iii) the implementation of the consequent decisions made at such meetings. The amount must be paid within 05 (five) business days after proof of the delivery by the Fiduciary Agent of an “hour report” to the Company previously approved by it. The restructuring of the debentures is understood as the events related to the amendment in: (a) the guarantees, (b) the payment terms and (c) the conditions related to the early maturity of the Debentures. The events related to the amortization or redemption of the Debentures will not be considered as restructuring of the Debentures.
|
9.7 |
In the event of any amendments to the Deed of Issuance and the Issuance guarantee agreements, the Fiduciary Agent shall additionally be liable to the amount of BRL 500.00 (five hundred reais) per man-hour of work dedicated to such amendments. The amount must be paid within 05 (five) business days after proof of the delivery by the Fiduciary Agent of an “hour report” to the Company previously approved by it.
|
9.8 |
In the event of early maturity, optional early acquisition or early redemption of all Debentures in circulation, as provided in this Deed, before the final term defined in Clause 7.17, it is established that the Fiduciary Agent shall return the proportional installment of the remuneration initially received without the consideration of the service rendered corrected by the cumulative percentage change of IGPM calculated
pro rata temporis
, from the date of payment of the remuneration until the date of the effective cancellation or redemption of the totality, to the Company.
|
9.9 |
The payment of the remuneration of the Fiduciary Agent will be made through credit in the current account to be indicated by the Fiduciary Agent.
|
9.10 |
remuneration due to the Fiduciary Agent pursuant to this Clause 9 will be annually updated based on the accumulated percentage change of IGPM, or in its lack or impossibility of application, by the same index that replaces it, as of the date of payment of the 1
st
(first) installment of this Clause 9, up to the dates of payment of each subsequent installment calculated
pro rata temporis
.
|
9.11 |
The amounts will be increased by the following taxes levied on the remuneration of the Fiduciary Agent: (i) ISS (Services Tax of any nature); (ii) PIS (Contribution to the Social Integration Program); (iii) COFINS (Contribution to Social Security Financing), and (iv) any other that may be levied on said remuneration, with the exception of Income Tax at current rates corresponding to the real profit tax regime by the financial institutions at the respective dates of payment, in such a way that the amounts indicated in this Deed correspond to net amounts of these taxes levied on the provision of fiduciary agent services by financial institutions.
|
9.12 |
It is hereby established that in the event of the replacement of the Fiduciary Agent, the replaced shall return to the Company the proportional portion of the Remuneration initially received without the compensation of the service rendered corrected by the cumulative percentage change of IGPM, calculated
pro rata temporis
, from the date of payment until the effective replacement date.
|
9.13 |
If the conditions of the Issuance are changed, the Company and the Fiduciary Agent undertake to evaluate the impacts of these changes on the services described herein in order to change the remuneration of the Fiduciary Agent.
|
9.14 |
The expected remuneration will be due even after the maturity of the Debentures when it is the adoption by the Fiduciary Agent of the procedures set forth in law or in the Deed, as indicative of early maturity.
|
9.15 |
The remuneration described in Clause 9.4 above shall be due even after the Maturity Date of the Debentures in case the Fiduciary Agent continues to act in the collection of compliance with the Company’s obligations.
|
9.16 |
The remuneration to the Fiduciary Agent does not include travel, lodging, transport and publication expenses necessary for the performance of their function during or after the service implementation is to be covered by the Company, after prior written approval of the Company. Expenses with specialists, such as audit of the guarantees granted to the loan and legal advice to the Fiduciary Agent in case of default of the obligations arising from the Debentures, are not included and will be borne by the Company. Possible expenses, deposits and legal costs, as well as indemnities, arising from actions brought against the Fiduciary Agent arising from the its function or from its performance in defense of the debenture holders shall be borne by the Debenture Holders. Such expenses include legal fees for the defense of the Fiduciary Agent and shall be advanced by the Debenture Holders and reimbursed by the Company.
|
9.17 |
The reimbursement referred to in Clause 9.16 above shall be made within 10 (ten) calendar days from the receipt by the Company of the respective rendering of accounts.
|
9.18 |
In the event of default by the Company, all expenses that the Fiduciary Agent may incur in order to safeguard the interests of the debenture holders must be previously approved and advanced by the debenture holders and, thereafter, must be reimbursed by the Company, and such reimbursement by the Company will only be due to fact, an act or omission evidently attributed to the Company. Such expenses include attorney’s fees, including third-party fees, deposits, indemnities, legal costs and fees for actions proposed by the Fiduciary Agent, provided they are related to the default solution, as a representative of the debenture holders. Any expenses, deposits and legal costs arising from the loss of legal proceedings shall also be borne by the debenture holders, as well as the remuneration and reimbursable expenses of the Fiduciary Agent, in the event that the Company remains in default with respect to their payment for a period exceeding 10 (ten) calendar days.
|
9.19
|
In addition to others provided by law, in the regulations of the CVM and in this Deed of Issuance, they constitute duties and attributions of the Fiduciary Agent:
|
I.
|
exercise its activities in good faith, transparency and loyalty to Debenture Holders;
|
II.
|
protect the rights and interests of Debenture Holders by employing in the exercise of their function the care and diligence with which every active man applies in the administration of his own possessions;
|
III.
|
resign in the event of a conflict of interest or any other modality of disability and immediately convene the general meeting of Debenture Holders provided for in article 7 of CVM Instruction 583 to resolve on its replacement;
|
IV.
|
keep in good custody all documentation relating to the performance of their duties;
|
V.
|
to verify, at the moment of accepting the function, the truthfulness of the information contained in this Deed of Issuance and in the other Documents of the Secured Obligations regarding the Debentures, endeavoring to heal any omissions, faults or defects of which it is aware;
|
VI.
|
to file before the Company this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures and their additions to be entered, recorded and/or annotated, as the case may be, under the terms of this Deed and the respective Documents of the Secured Obligations the Debentures, adopting, in the case of Company’s omission, any measures contemplated by law;
|
VII.
|
monitor the provision of periodic information by the Company and to alert Debenture Holders, in the annual report referred to in item XX below, of any inconsistencies or omissions of which it is aware;
|
VIII.
|
to opine on the sufficiency of the information provided in the proposed changes to the conditions of the Debentures;
|
IX.
|
to verify the regularity of the constitution of the Guarantees and the values of the assets given as collateral, observing the maintenance of their sufficiency and feasibility, under this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures;
|
X.
|
to examine a proposal for replacement of the assets pledged, expressing its opinion on the matter in a justified manner, after approval by the Debenture Holders, meeting in the general meeting of Debenture Holders;
|
XI.
|
to notice Company, Guarantors or any third-party grantor, as the case may be, to enforce the Collateral, in the event of its deterioration or depreciation, under this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures;
|
XII.
|
request, when it deems it necessary, for the faithful performance of their duties, up-to-date certificates from the Company of any Guarantors, civil distributors, Public Treasury courts, protest notices, labor courts, and the Office of the Treasury Attorney The place where any of the goods covered by the Guarantees is located, the domicile or headquarters of the Company, of any Guarantors and/or third-party grantor;
|
XIII.
|
request, when it deems it necessary, an external audit of Company;
|
XIV.
|
call, when necessary, the Debenture Holders’ General Meeting pursuant to Clause 10.3 below;
|
XV.
|
to attend Debenture Holders’ General Meeting in order to provide the information requested;
|
XVI.
|
to maintain updated the relationship of the Debenture Holders and their addresses, including, but not limited to, the Company, the Bookkeeper, the Settlement Bank and the B3, and for the purpose of complying with this subsection, Company and Debenture Holders, as well as which subscribe and pay into or acquire the Debentures, expressly authorize the Bookkeeper, the Settlement Bank and the B3 to attend to any requests made by the Fiduciary Agent, including the disclosure, at any time, of the position of Debentures, and their respective Debenture Holders;
|
XVII.
|
coordinate the lottery of the Debentures to be redeemed in the cases provided for in this Deed of Issuance, if applicable;
|
XVIII.
|
to oversee compliance with the Clauses contained in this Deed of Issuance and the other Documents of the Secured Obligations concerning the Debentures, including (a) those of imposing obligations of doing and not doing; and (b) that relating to compliance with the Financial Ratios;
|
XIX.
|
communicate to the Debenture Holders any default, by the Company or by any of the Guarantors, of financial obligations assumed in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, including obligations relating to Guarantees and Clauses contractual obligations designed to protect the interest of Debenture Holders and which establish conditions not to be disregarded by the Company and/or by any of the Guarantors, stating the consequences for Debenture Holders and the steps they intend to take on the matter, within 7 (seven) Business Days counted from the date of the science, by the Fiduciary Agent, of the default;
|
XX.
|
within four (4) months from the end of the Company’s fiscal year, to disclose on its website and to send to the Company for disclosure in the manner specified in the specific regulation, annual report to the Debenture Holders pursuant to Article 68, paragraph 1 (b) of Brazilian Corporation Law, describing the relevant facts that occurred during the year related to the Debentures, according to the minimum content established in Exhibit 15 to CVM Instruction 583;
|
XXI.
|
maintain the annual report referred to in item XX above available for public consultation on its website for a period of three (3) years;
|
XXII.
|
keep available on your Internet page updated list of issues in which you perform the function of Fiduciary Agent, notes agent or collateral agent;
|
XXIII.
|
to disclose on its website the information provided for in article 16 of CVM Instruction 583 and to keep it available for public consultation on its website for a period of three (3) years; and
|
XXIV.
|
disclose to the Debenture Holders and other market participants, on its web page and/or in its call center, on each Business Day, the outstanding unit balance of the Debentures, calculated by the Company in conjunction with the Fiduciary Agent.
|
9.20
|
In case of default by the Company and/or by any of the Guarantors, any of its obligations described in this Deed of Issuance and/or in any of the other Documents of the Secured Obligations regarding the Debentures, shall the Fiduciary Agent Obligations to protect rights or defend interests of Debenture Holders, under the terms of article 68, paragraph 3, of the Brazilian Securities and Exchange Commission. Brazilian Corporation Law and article 12 of CVM Instruction 583, including:
|
I.
|
declare, subject to the conditions of this Deed of Issuance, in advance overdue the obligations connected with the Debentures, and charge its principal and accessories;
|
II.
|
subject to the provisions of this Deed of Issuance and of the other Documents of the Secured Obligations concerning the Debentures, to execute the Guarantees, applying the proceeds in full or proportional payment to the Debenture Holders;
|
III.
|
the request of bankruptcy of Company and Guarantors if there are no real guarantees;
|
IV.
|
take any other necessary measurements in order that the Debenture Holders make their credits; and
|
V.
|
represent the Debenture Holders in bankruptcy, judicial recovery, extrajudicial recovery or, if applicable, extrajudicial intervention or liquidation of the Company and/or of any of the Guarantors.
|
9.21
|
The Fiduciary Agent may be based on information made available to it by the Company and/or by any of the Guarantors to monitor compliance with the Financial Ratios.
|
9.22
|
The Fiduciary Agent shall not be required to perform any veracity verification of any document or record which it considers to be authentic and has been forwarded to it by the Company or a third party at its request to rely on its decisions and shall not be responsible for the preparation which shall remain under the legal and regulatory obligation of the Company to draw up such documents, in accordance with the applicable legislation.
|
9.23
|
The Fiduciary Agent will not issue any type of opinion or make any judgment regarding guidance on any fact of the Issue that is in the definition by the Debenture Holders pursuant to Clause 10 below, only being obliged to act in in accordance with the instructions given to it by the Debenture Holders, pursuant to Clause 10 below, and in accordance with the attributions conferred by law, Clause 9.4 above and the other provisions of this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures. Accordingly, the Fiduciary Agent has no liability whatsoever for the outcome or legal effects arising from strict compliance with the guidelines of the Debenture Holders transmitted to it as defined by the Debenture Holders pursuant to Clause 10 below and reproduced by The Company and the Guarantors.
|
9.24
|
The actions of the Fiduciary Agent are limited to the scope of CVM Instruction 583, applicable articles of the Brazilian Corporation Law, this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures, the Fiduciary Agent being exempt in any form or pretext, of any additional liability not arising from the applicable legal and regulatory provisions of this Deed of Issuance and of the other Documents of the Secured Obligations to the Debentures.
|
10.
|
Debenture Holders’ General Meeting
|
10.1
|
Debenture Holders may at any time hold a general meeting in accordance with Article 71 of Brazilian Corporation Law, in order to resolve matters of interest to the Debenture Holders.
|
10.2
|
General meetings of Debenture Holders may be called by the Fiduciary Agent, by the Company, by Debenture Holders representing at least 10% (ten percent) of the Debentures in Circulation, or by the CVM.
|
10.3
|
The convening of general meetings of Debenture Holders, as the case may be, shall be done by means of a notice published at least three (3) times under Clause 7.36 above, in compliance with other rules related to the publication of a notice convening general meetings of the Brazilian Corporation Law, of the applicable regulations and of this Deed of Issuance, being exempted the call in the case of the presence of all the Debenture Holders.
|
10.4
|
General meetings of Debenture Holders shall be convened, on first call, with holders of at least half of the Debentures in Circulation, and, on second call, with any quorum.
|
10.5
|
The general meetings of Debenture Holders shall be held by the Debenture Holder elected by them or by the one appointed by the CVM.
|
10.6
|
In the resolutions of the general meetings of Debenture Holders, each of the Debentures in Circulation shall be entitled to vote, admitted to be a representative, Debenture holder or not. Except as provided in Clause 10.6.1 below, all resolutions to be taken at the general meeting of Debenture Holders will depend on the approval of Debenture Holders representing at least (i) 60% (sixty percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in first calling; or (ii) 51% (fifty-one percent) of Debentures in Circulation, as per Debenture Holders’ General Meeting held in second calling.
|
10.6.1
|
Are not included in the quorum referred to in Clause 10.6 above:
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I.
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quorums expressly provided for in other Clauses of this Deed of Issuance; and
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II.
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the amendments, which shall be approved by Debenture Holders representing at least 90% (ninety percent) of the Debentures in Circulation, (a) of the provisions of this Clause; (b) of any of the quorums provided in this Deed of Issuance; (c) of Remuneration, except as provided in Clause 7.19.4 above; (d) of any payment dates of any amounts provided in this Deed of Issuance; (e) of the term of the Debentures; (f) of the species of the Debentures; (g) of any of the Guarantees; (h) the creation of renegotiation event; (i) the provisions relating to Optional Early Redemption or Mandatory Early Redemption – Event of Migration; (j) the provisions relating to Optional Early Amortization; (k) of the provisions relating to Compulsory Early Amortization or Mandatory Early Amortization – Event of Migration; (l) of the provisions relating to the Bonus for Performance; (m) of the creation of optional redemption offer event; or (n) of any Event of Default writing; or (o) provisions related to the Event of Migration.
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10.6.2
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The temporary waiver or remission of an Event of Default shall be approved in accordance with Clause 10.6 above.
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10.7
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Decisions taken by Debenture Holders within their legal competence, subject to the quorums provided in this Deed of Issuance, shall be valid and effective before Company and shall bind all Debenture Holders irrespective of their attendance or vote at the respective Debenture general meeting Holders.
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10.8
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The holding of a general meeting of Debenture Holders is now waived to resolve on (i) correction of gross, typing or arithmetical error; (ii) amendments to this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures already expressly permitted under this Deed of Issuance and/or of the other Documents of the Secured Obligations regarding the Debentures; (iii) amendments to this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures as a result of requirements formulated by CVM, B3 or ANBIMA; or (iv) amendments to this Deed of Issuance and/or any of the other Obligations relating to the Debentures as a result of the updating of the registration data of the Parties, such as change in name, address and telephone, provided that the changes or corrections referred to in items (i), (ii), (iii) and (iv) above can not cause any impairment to the Debenture Holders and/or Company or any change in the flow of the Debentures, and that there is no additional cost or expense for Debenture Holders.
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10.9
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The Fiduciary Agent shall attend the general meetings of Debenture Holders and provide to the Debenture Holders such information as may be requested.
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11.
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Representation of the Company And Guarantors
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11.1.
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The Company and the Guarantors, on the Issue Date and on each Payment Date, jointly represent that:
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I.
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The Company is a company duly organized, incorporated and existing in the form of a corporation, according to Brazilian laws, without registration of issuer of securities before the CVM, and each of the Guarantors is a company duly organized, constituted and existing company in the form of a corporation or limited company in accordance with Brazilian laws;
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II.
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are duly authorized and have obtained all the authorizations, including those applicable, legal, corporate, regulatory and third party, necessary for the execution of this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures and to the fulfillment of all the obligations here provided and to the execution of the Issue and Offer, and all legal, corporate, regulatory and third-party requirements necessary to;
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III.
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the legal representatives of Company and Guarantors who sign this Deed of Issuance and the other Documents of the Securities Obligations regarding the Debentures have, as the case may be, corporate powers and/or delegates to assume, on behalf of the Company and/or the respective Guarantor, as the case may be, the obligations here and there provided and, being delegates, have the legitimately granted powers, and their respective mandates are in full force;
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IV.
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this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures and the obligations hereunder provided herein are legally binding, valid, binding and effective obligations of Company and Guarantors, enforceable in accordance with its terms and conditions;
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V.
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Except as provided in Clause 3 above, no approval, authorization, consent, order, registration or authorization of or before any judicial body, governmental agency or agency or regulatory body is necessary for the execution and enforcement of this Deed of Issuance and of the other Documents of the Secured Obligations concerning the Debentures and the Issuance and Offering;
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VI.
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the execution, the terms and conditions of this Deed of Issuance and the other Documents of the Secured Obligations regarding the Debentures and the fulfillment of the here and there obligations and the performance of the Issue and the Offer (a) do not violate Company’s by-laws or the by-laws or the social contract of any of the Guarantors; (b) does not infringe any contract or instrument of which the Company and/or any of the Guarantors is a party and/or for which any of its assets are subject; (c) shall not result in (i) early maturity of any obligation established in any contract or instrument of which the Company and/or any of the Guarantors is a party and/or for which any of its assets are subject; or (ii) termination of any such contracts or instruments; (d) shall not result in the creation of any Loan over any assets of the Company and/or any of the Guarantors, except for the Warranties; (e) does not infringe any legal or regulatory provision to which the Company and/or any Guarantors and/or any of its assets is subject; and (f) does not infringe any order, decision or administrative, judicial or arbitral award affecting Company and/or any Guarantors and/or any of its assets;
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VII.
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are in compliance with the obligations contained in this Deed of Issuance and of the other Documents of the Secured Obligations regarding the Debentures, and did not occur and does not exist on this date, any Event of Default;
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VIII.
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are fully aware and fully agree with the manner of disclosure and determination of the DI Rate and the method of calculating the Remuneration has been freely agreed upon by Company and Guarantors in accordance with the principle of good faith;
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IX.
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the information provided at the time of the Offering is true, consistent, accurate, complete, correct and sufficient, allowing investors to make a reasoned decision regarding the Offer;
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X.
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the opinions, analyzes and forecasts (if any) expressed have been made in good faith, having regard to all relevant circumstances in the context of the Offer and based on reasonable assumptions;
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XI.
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the documents and information provided to the Fiduciary Agent and/or potential Prospective Investors are true, consistent, accurate, complete, correct and sufficient, and they are updated until the date they were provided and include documents and information relevant to the decision making process related to investment in Debentures;
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XII.
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Company’s Consolidated Financial Statements for the fiscal years ended December 31, 2014, 2015 and 2016 correctly represent Company’s consolidated financial position on those dates and for those periods and were duly prepared in accordance with the Brazilian Corporation Law and with the rules issued by the CVM;
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XIII.
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are, as well as the Controlled Companies, complying with the laws, regulations, administrative norms and determinations of the governmental organs, autarchies or judicial instances applicable to the exercise of its activities, except for those questioned in good faith in the administrative and/or judicial spheres;
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XIV.
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are, as well as the Controlled Companies, up-to-date with the payment of all taxes (municipal, state and federal), labor, social security, environmental and any other obligations imposed by law, except for those questioned in good faith in the administrative and/or judicial spheres or whose non-compliance may not cause a Material Adverse Effect;
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XV.
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have, as well as the Controlled Companies, valid, effective, in perfect order and in full force all licenses, concessions, authorizations, permits and permits, including environmental, applicable to the exercise of their activities, except for those whose absence cannot cause a Material Adverse Effect;
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XVI.
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comply and cause to comply, as well as their Affiliates, employees and any subcontractors, the Anti-Corruption Legislation, insofar as they (a) maintain internal policies and procedures aimed at the dissemination and full compliance with Anti-Corruption Legislation; (b) give full knowledge of the Anti-Corruption Legislation to all the professionals with whom they come to relate, prior to the beginning of their action; (c) refrain from engaging in acts of corruption and injuring the public administration, national and foreign, in their interest or for their benefit, whether exclusive or not; and (d) communicate the Debenture Holders (through the publication of notice pursuant to Clause 7.36 above or individual notice to all Debenture Holders, with a copy to the Fiduciary Agent) and the Fiduciary Agent if they are aware of any act or fact which violates Anti-Corruption Legislation;
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XVII.
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not exist, including in relation to the Controlled Companies, (a) noncompliance with any contractual provision, legal or of any judicial, administrative or arbitral order; or (b) any judicial, administrative or arbitral proceedings, investigations or any other governmental investigation, in any of the cases in this subsection, (i) that may cause a Material Adverse Effect; or (ii) in order to annul, alter, invalidate, question or otherwise affect this Deed of Issuance and/or any of the other Documents of the Secured Obligations regarding the Debentures;
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XVIII.
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there is no link between the Company or any of the Guarantors and the Fiduciary Agent that prevents the Fiduciary Agent from fully exercising its functions;
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XIX.
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Company owns the acquisition rights and the legitimate owner (i) of Itapevi Property 1, Property Itapevi 2, registration number 2150 of Property Tremembé 2, Property Paulínia 2, which are currently registered on behalf of third parties; (ii) of the Paulínia Property 1, whose registrations could not be obtained until the present date; (c) sixty million, seven hundred and thirty-six thousand seven hundred and seven (60,736,707) shares issued by Viva Ambiental (“Viva Ambiental Shares”) which, together with Viva Ambiental Cavo Shares (as defined below) , represent the entire capital stock of Viva Ambiental;
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XX.
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Cavo is the legitimate owner (i) of 6,100,055 (six million, one hundred thousand, and fifty-five) shares issued by CGR Feira de Santana, representing the total capital stock of CGR Feira de Santana; (ii) 100,000 (one hundred thousand) shares issued by V2 Ambiental, representing the entire capital stock of V2 Ambiental; (iii) 9,421,168 (nine million, four hundred and twenty one thousand, one hundred and sixty eight) shares issued by Viva Ambiental (“Viva Ambiental Cavo Shares”) which together with the Viva Ambiental Company Shares represent the total capital of Viva Ambiental;
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XXI.
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Geo Vision, which is the legitimate owner of 10,254,693 (ten million two hundred and fifty four thousand, six hundred and ninety three) CGR Guatapará shares, representing 50% (fifty percent) of the capital stock of CGR Guatapará; and that Estre Aterros e Valorização SA is the legitimate owner of 10,254,693 (ten million, two hundred and fifty four thousand, six hundred and ninety-three) shares issued by CGR Guatapará, representing 50% (fifty percent) of the capital stock of the CGR Guatapará; and
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XXII.
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the Company is the legitimate owner of six hundred and sixty-seven million, one hundred and forty-seven thousand, six hundred and eighty (667,147,680) shares issued by Cavo, representing the entire capital stock of Cavo.
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9.5
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The Company and the Guarantors, jointly, irrevocably, agree to indemnify the Debenture Holders and the Fiduciary Agent for any and all damages, losses, costs and/or expenses (including court costs and attorneys’ fees) incurred and proven by Debenture Holders and/or by the Fiduciary Agent on the grounds of falsehood and/or inaccuracy of any of the statements provided under Clause 11.1 above.
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9.6
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Notwithstanding the provisions of Clause 11.2 above, The Company and the Guarantors undertake to notify within (2) Business Days as of the date on which they take notice of the Debenture Holders (pursuant to Clause 7.36 above or individual notice to all Debenture Holders with a copy to the Fiduciary Agent) and the Fiduciary Agent if any of the statements provided under Clause 11.1 above is false and/or incorrect on any of the dates on which it was provided.
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12.
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Expenses
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12.1.
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All costs incurred with the Issue and Offer and the structuring, issuance, registration, deposit and execution of the Debentures and Warranties, as the case may be, shall be borne by Company and Guarantors, including publications, inscriptions, registrations, deposits, contracting of the Fiduciary Agent, the Bookkeeper, the Settlement Bank, the Independent Auditor and other service providers, and any other costs related to Debentures or Warranties.
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13.
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Communications
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13.1.
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All communications under this Deed of Issuance shall always be made in writing to the addresses below and will be considered as received (i) in the case of communications in general, on the date of delivery, under protocol or by “notice of receipt “issued by the Brazilian Post and Telegraph Company; and (ii) in the case of communications made by e-mail, on the date of its sending, provided that its receipt is confirmed through the call sign (receipt issued by the machine used by the sender). The amendment of any of the addresses below shall be communicated to the other Parties by the Party whose address is changed.
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I.
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to the Company:
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II.
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to the Fiduciary Agent:
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III.
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to the Guarantors:
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14.
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General Provisions
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14.1.
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The obligations assumed in this Deed of Issuance are irrevocable and irreversible, obliging the Parties and their successors, in any capacity, to their full compliance.
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14.2.
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Any amendment to this Deed of Issuance will only be considered valid if formalized in writing, in an instrument executed by all the Parties.
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14.3.
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The invalidity or nullity, in whole or in part, of any of the Clauses of this Deed of Issuance shall not affect the remaining provisions, which shall remain valid and effective until the fulfillment by the Parties of all their obligations hereunder.
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14.4.
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Any tolerance, partial exercise or concession amongst the Parties shall always be considered mere liberality and shall not constitute a waiver or loss of any right, faculty, privilege, prerogative or conferred powers (including mandate), nor shall it imply novation, alteration, compromise, remission, modification or reduction of rights and obligations arising therefrom.
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14.5.
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The Parties recognize this Deed of Issuance and the Debentures as extrajudicial enforceable title under article 784, items I, III and V of the Code of Civil Procedure.
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14.6.
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For the purposes of this Deed of Issuance, the Parties may, in their sole discretion, request the specific performance of the obligations assumed hereunder, pursuant to Articles 497 et seq., 538 and Articles on various types of implementation (Article 797 et seq.), all of the Code of Civil Procedure, Notwithstanding the right to declare the early maturity of the obligations connected with the Debentures, under the terms provided in this Deed of Issuance.
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15.
|
Applicable Law
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15.1.
|
This Deed of Issuance is governed by the laws of the Federative Republic of Brazil.
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16.
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Jurisdiction
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16.1.
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The District Court of the City of São Paulo, São Paulo State, shall be elected, excluding any other, however privileged it may be, in order to settle any questions arising from this Deed of Issuance.
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