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EXHIBIT 10.1
[ABN-AMRO LOGO]
ABN AMRO BANK N.V. ("ABN AMRO")
Operations Derivatives Market/Forex Options
P.O. Box 283/AH 1403
1000 EA Amsterdam Telephone nr. :+31 20 3830724
The Netherlands Fax nr. :+31 20 6284832
Amsterdam, l4 juli 2000 Referentienummer Transactie : X0387002/006
Status Transactie : nieuw
AUTOBYTEL EUROPEAN HOLDING B.V.
POSTBUS 10230
1301 AE ALMERE
Subject Confirmation of a FORWARD EXTRA OPTION Transaction
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Dear Sir/Madam,
The purpose of this letter agreement, which constitutes a "Confirmation" as
referred to in the Agreement specified below, is to confirm the terms and
conditions of the transaction entered into between us on the Trade Date as
specified below (the "Transaction").
The definitions and provisions contained in the 1991 ISDA Definitions (as
amended and supplemented by the 1998 Supplement), as published by the
International Swaps and Derivatives Association, Inc. ("ISDA") (the "1991
Definitions") and in the 1998 FX and Currency Option Definitions, as published
by ISDA, the Emerging Markets Traders Association and The Foreign Exchange
Committee (the "FX and Currency Definitions") as each are amended and
supplemented by the 1998 ISDA Euro Definitions (the "Euro Definitions", and
together with the 1991 Definitions and the FX and Currency Definitions, the
"Definitions") are incorporated into this Confirmation. References herein to the
"Transaction" shall be deemed to be references to the "Swap Transaction" for the
purposes of the 1991 Definitions. In the event of any inconsistency between the
1991 Definitions and the FX and Currency Definitions, the FX and Currency
Definitions will govern. In the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern.
This Confirmation evidences and complete binding agreement between you and us as
to the terms of the Transaction. In addition, you and we agree to use all
reasonable efforts promptly to negotiate, execute and deliver an agreement in
the form of the ISDA Master Agreement (Multicurrency-Cross Border) (the 1992
version) (the "ISDA Master"), with such completions and modifications as you and
we will in good faith agree, including for this purpose any Schedule to the ISDA
Master (as so completed and modified and as the same may be amended or
supplemented from time to time, the "Agreement"). Each party hereunder
represents to the other that it has reviewed and is familiar with the terms of
the ISDA Master. Upon the execution by you and us of such an Agreement, this
Confirmation will supplement, form a part of, and be subject to the Agreement.
All provisions contained or incorporated by reference in the Agreement will
govern this Confirmation except as expressly modified below.
Until such time as you and we execute the Agreement this Confirmation, and all
other written communications between us confirming transactions (each a
"Transaction") which are intended to form part of the Agreement (as evidenced by
reference to the ISDA Master or otherwise) or which do not refer to or
incorporate the terms of any other master agreement or standard terms) shall
each constitute a "Confirmation" for the purposes of, supplement, form a part
of, and be subject to an agreement in the form of the ISDA Master as if we had
executed an agreement in such form on the Trade Date of the first
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[ABN-AMRO LOGO]
such Transaction between us, with the selection of English law under Part 4(h)
of the Schedule, designation of US Dollars as the Termination Currency,
designation of notice particulars as stated above and the selection that
Automatic Early Termination will apply to Counterparty but without any other
completion of or modification to the Schedule. Until execution and delivery of
the Agreement, references herein to the Agreement shall be deemed references to
the ISDA Master so completed.
This particular Transaction has features that differ from the standard Currency
Option, as set forth below.
1. THE TRANSACTION:
1.1 General Terms:
Trade Date: 13 JUL 00
Buyer: AUTOBYTEL EUROPEAN HOLDING B.V.
Seller: ABN AMRO Bank N.V.
Currency Option Style: European
Call Currency and Call Currency
Amount: NLG 11,475,000.00
Put Currency and Put Currency
Amount: USD 5,000,000.00
Strike Price: 2.29500 NLG/USD
Expiration Date: 26 JUN 01
Expiration Time: 10:00 AM NEW YORK TIME
Settlement Date: 28 JUN 01
Premium: NLG 0.00
Premium Payment Date: 17 JUL 00
Forward Trigger Period: The period from the trade time on the
Trade Date to the Expiration Time on the
Expiration Date.
Forward Trigger Price: 2.4500 NLG/USD
Regio Treasury Desk (RTD): RTD AMSTERDAM
1.2 SPECIAL PROVISIONS IN THE FORWARD EXTRA OPTION:
Notwithstanding anything in the ISDA Master or in the Agreement or in the
Definitions to the contrary, this Forward Extra Option Transaction shall
cease to be exercisable after the occurrence of a Forward Trigger Event as
hereinafter set forth.
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[ABN-AMRO LOGO]
FORWARD TRIGGER EVENT (THE "EVENT"):
If the Calculation Agent determines, in good faith and in a commercially
reasonably manner, that at any time during the Forward Trigger Period
the Spot Rate is at a price EQUAL TO OR ABOVE the Forward Trigger Price,
an Event shall thereupon occur. Upon such determination the Calculation
Agent shall promptly Give notice to the parties by telephone promptly
confirmed in writing, provided that failure so to confirm shall not
affect the validity, effectiveness or binding nature of such telephone
notice.
In case an Event occurs by which this Forward Extra Option ceases to be
exercisable the following forward contract will automatically arise
between the parties, and they shall be obligated in accordance with the
following:
ABN AMRO Bank N.V. sells/THE COUNTERPARTY buys: USD 5,000,000.00
ABN AMRO BANK N.V buys/THE COUNTERPARTY sells: NLG 11,475,000.00
SETTLEMENT Date: 28 JUN 01
For the avoidance of doubt, if the Event does occur during the Forward
Trigger Period, the Buyer will not be entitled to the return of any
Premium paid.
SPOT RATE:
The spot price in the Spot Market at any time during the Forward
Trigger Period for foreign exchange transactions in the relevant
Currency Pair in the relevant amount, as determined by the Calculation
Agent in good faith and in a commercially reasonable manner either by
reference to the rates for the exchange of the relevant Currency pair or
to cross-rates.
SPOT MARKET:
The global spot foreign exchange market, which for the purpose of
determining the Spot Rate, shall be treated as being continuously open
from 5:00 a.m. Sydney time on Monday in any week to 5:00 p.m. New York
time on Friday of that week.
1.3 Accounts:
Payments to ABN AMRO Bank N/A
N.V. in NLG should be made to:
ABN AMRO may but is not required to, and is
hereby authorised to debit amounts payable by
Counterparty hereunder from Counterparty's
account held with ABN AMRO Bank N.V. Such debit
to constitute payment by Counterparty of the
amount so debited.
Payments to Counterparty in N/A
NLG should be made to:
Counterparty hereby directs ABN AMRO to credit
amounts payable by ABN AMRO hereunder to
Counterparty's account held with ABN AMRO Bank
N.V. Such credit shall constitute payment by ABN
AMRO of the amount so credited.
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2. CALCULATION AGENT:
ABN AMRO shall be the Calculation Agent with respect to the Transaction.
If a party to the Transaction disputes the Calculation Agent's
determination of one or more Events described in paragraph 1.2, the
Calculation Agent shall provide reasonable evidence of the transaction
which has taken place in the foreign exchange market on which its
determination is based. If the Calculation Agent is unable to supply such
evidence or the disputing party reasonably and in good faith believes that
such evidence is not sufficient to determine the occurrence of such Event,
the Calculation Agent and the other party shall mutually select a
recognised independent leading dealer ("Dispute Resolution Dealer") in the
relevant market, who will determine in good faith whether the Event
described in paragraph 1.2 has been reached.
If the Dispute Resolution Dealer advises the Calculation Agent in writing
that the Event described in paragraph 1.2 has occurred, such occurrence
shall be conclusively presumed. If the Dispute Resolution Dealer does not
advise so, it shall be conclusively presumed that the Event did not occur,
without prejudice to any determination by the Calculation Agent with
respect to a subsequent Event.
3. OFFICES:
ABN AMRO AMSTERDAM
Counterparty: ALMERE
4. RELATIONSHIP BETWEEN THE PARTIES:
Each party will be deemed to represent to the other party on the date on
which it enters into a Transaction that (absent a written agreement between
the parties that expressly imposes affirmative obligations to the contrary
for that Transaction)"
(a) NON-RELIANCE. It is acting for its own account, and it has made its
own independent decisions to enter into that Transaction and as to
whether that Transaction is appropriate or proper for it based upon
its own judgment and upon advice from such advisers as it has deemed
necessary. It is not relying on any communication (written or oral) of
the other party as investment advice or as a recommendation to enter
into that Transaction; it being understood that information and
explanation related to the terms and conditions of a Transaction shall
not be considered investment advice or a recommendation to enter into
that Transaction. No communication (written or oral) received from the
other party shall be deemed to be an assurance or guarantee as to the
expected results of that Transaction;
(b) ASSESSMENT AND UNDERSTANDING. It is capable of assessing the merits of
and understanding (on its own behalf or through independent
professional advice), and understands and accepts the terms,
conditions and risks of that Transaction. It is also capable of
assuming, and assumes, the risks of that Transaction;
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(c) STATUS OF PARTIES. The other party is not acting as a fiduciary or an
adviser to it in respect of that Transaction;
(d) CONSULTATION. Discussions of termination or limitation of risk with
respect to the Transaction and/or provision by a party of indicative
valuations, financial analyses or other statements of valuation and
risk based on market movements (i) are based only on the party's
business and experience as a provider of financial services, (ii) are
subject only to the duty of each party to act in good faith and to no
other duty and (iii) do not constitute guarantees or assurances of
financial results or commitments to terminate or otherwise limit
exposure under the Transaction, it being understood that each party
undertakes duties, liabilities or obligations under the Agreement or
in respect of the Transaction only through written documentation
expressly so undertaking and signed by its duly authorised officer;
and
(e) AWARENESS. In so far as Counterparty is not acting as a dealer or a
market professional in the relevant market, the transaction is entered
in to in accordance with its authorised policies for purposes of
hedging or managing its assets, liabilities and/or investments or in
connection with a line of business (and not for speculation).
Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing the copy of this Confirmation enclosed for that purpose
and returning it to us.
If we do not receive any comments from you in writing within five Business Days,
we assume that you agree with the terms and conditions as mentioned in the
confirmation above and will act accordingly. In the case of discrepancies,
please contact the Regio Treasury Desk, quoting the above reference number.
Yours faithfully
/s/ WILLEM DE WAARD /s/ CATHERINE H.M. CLERCX
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ABN AMRO BANK N.V. ABN AMRO BANK N.V.
Name: Willem De Waard Name: Catherine H.M. Clercx
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Title: Enquiries, Fails & Claims Treasury Title: Head of Transaction
---------------------------------- Processing Treasury
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Confirmed as of the Trade Date:
/s/ JOOP KNOTTENBELT /s/ PH. G.S. SMIT
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AUTOBYTEL EUROPE HOLDING B.V. AUTOBYTEL EUROPE HOLDING B.V.
Name: Joop Knottenbelt Name: Ph. G.S. Smit
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Title: Interim C.E.O. Title: Co-Managing Director
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Date: Date:
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