<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 27, 1998
REGISTRATION NO. 333-62989
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
AMENDMENT NO. 1
TO
FORM S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------
CDRJ INVESTMENTS (LUX) S.A.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
LUXEMBOURG 2844 98-0185444
(STATE OR OTHER (PRIMARY STANDARD (I.R.S. EMPLOYER
JURISDICTION OF INDUSTRIAL IDENTIFICATION NUMBER)
INCORPORATION OR CLASSIFICATION CODE
ORGANIZATION) NUMBER)
---------------
10, RUE ANTOINE JANS
L-1820 LUXEMBOURG
LUXEMBOURG
(352) 476-867-1
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
---------------
JAFRA COSMETICS INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 2844 13-3998453
(STATE OR OTHER (PRIMARY STANDARD (I.R.S. EMPLOYER
JURISDICTION OF INDUSTRIAL IDENTIFICATION NUMBER)
INCORPORATION OR CLASSIFICATION CODE
ORGANIZATION) NUMBER)
---------------
2451 TOWNSGATE ROAD
WESTLAKE VILLAGE, CALIFORNIA 91361
(805) 449-3000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
---------------
JAFRA COSMETICS INTERNATIONAL, S.A. DE C.V.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
UNITED MEXICAN STATES 2844 98-0185480
(STATE OR OTHER (PRIMARY STANDARD (I.R.S. EMPLOYER
JURISDICTION INDUSTRIAL IDENTIFICATION NUMBER)
OF INCORPORATION) CLASSIFICATION CODE
NUMBER)
---------------
BLVD. ADOLFO LOPEZ MATEOS #515
COLONIA TLACOPAC, 01040
MEXICO, D.F.
(525) 490-1800
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
---------------
COPY TO:
PAUL S. BIRD, ESQ.
RALPH S. MASON, III DEBEVOISE & PLIMPTON
JAFRA COSMETICS INTERNATIONAL, INC. 875 THIRD AVENUE
2451 TOWNSGATE ROAD NEW YORK, NEW YORK 10022
WESTLAKE VILLAGE, CALIFORNIA 91361 (212) 909-6000
(805) 449-3000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
---------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As soon as
practicable after this Registration Statement becomes effective.
If the securities being registered on this Form are being offered in
connection with the formation of a holding company and there is compliance
with General Instruction G, check the following box. [_]
If this form is filed to register additional securities of an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [_]
If this form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of earlier effective registration statement for
the same offering. [_]
The Registrants hereby amend this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrants
shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Securities and Exchange Commission,
acting pursuant to said Section 8(a), may determine.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
OTHER REGISTRANTS
<TABLE>
<CAPTION>
PRIMARY ADDRESS, INCLUDING ZIP
STANDARD CODE, AND TELEPHONE
JURISDICTION OF INDUSTRIAL I.R.S. EMPLOYER NUMBER, INCLUDING AREA
INCORPORATION CLASSIFICATION IDENTIFICATION CODE, OF PRINCIPAL
NAME OF CORPORATION OR FORMATION CODE NUMBER NUMBER EXECUTIVE OFFICE
------------------- --------------------- -------------- --------------- ------------------------
<S> <C> <C> <C> <C>
Consultoria Jafra, S.A. United Mexican States 2844 None Blvd. Adolfo Mateos #515
de C.V. Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
Dirsamex, S.A. de C.V. United Mexican States 2844 None Blvd. Adolfo Mateos #515
Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
Distribuidora Venus, United Mexican States 2844 None Blvd. Adolfo Mateos #515
S.A. de C.V. Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
Jafra Cosmetics S. de United Mexican States 2844 None Blvd. Adolfo Mateos #515
R.L. de C.V. Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
Qualifax, S.A. de C.V. United Mexican States 2844 None Blvd. Adolfo Mateos #515
Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
Reday, S.A. de C.V. United Mexican States 2844 None Blvd. Adolfo Mateos #515
Colonia Tlacopac, 01040
Mexico, D.F.
(525) 490-1800
</TABLE>
ii
<PAGE>
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A +
+REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE +
+SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY +
+OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT +
+BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR +
+THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE +
+SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE +
+UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF +
+ANY SUCH STATE. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
SUBJECT TO COMPLETION, DATED , 1998
P R O S P E C T U S
JAFRA COSMETICS INTERNATIONAL
Offer To Exchange
11 3/4% Senior Subordinated Notes Due 2008,
For Any And All Existing Notes (As Defined Below)
THE EXCHANGE OFFER WILL EXPIRE AT 5:00 PM, NEW YORK CITY TIME, ON , 1998,
UNLESS EXTENDED.
-----------
Jafra Cosmetics International, Inc., a Delaware corporation ("U.S. Issuer"),
and Jafra Cosmetics International, S.A. de C.V., a sociedad anonima de capital
variable organized under the laws of the United Mexican States ("Jafra S.A."
and, together with the U.S. Issuer, the "Issuers"), hereby offer (the "Exchange
Offer"), upon the terms and subject to the conditions set forth in this
Prospectus (this "Prospectus") and the accompanying Letter of Transmittal (the
"Letter of Transmittal") to exchange up to $100,000,000 aggregate principal
amount of the 11 3/4% Senior Subordinated Notes due 2008 (the "New Notes"),
which have been registered under the Securities Act of 1933, as amended (the
"Securities Act"), pursuant to a Registration Statement of which this
Prospectus is a part, for a like principal amount of the issued and outstanding
11 3/4% Senior Subordinated Notes due 2008 of the Issuers (the "Existing
Notes"). The New Notes and the Existing Notes, as the case may be, are referred
to herein as the "Notes." The Existing Notes were originally issued and sold in
a transaction that was exempt from registration under the Securities Act (the
"Offering") and resold to certain qualified institutional buyers in reliance
on, and subject to the restrictions imposed pursuant to, Rule 144A under the
Securities Act ("Rule 144A"). The terms of the New Notes are identical in all
material respects to the terms of the Existing Notes for which they may be
exchanged pursuant to the Exchange Offer, except that (i) the New Notes will
have been registered under the Securities Act, and thus will not bear
restrictive legends restricting their transfer pursuant to the Securities Act
and will not contain certain provisions providing for an increase in the
interest rate on the Existing Notes under certain circumstances described in
the Registration Rights Agreement (as defined), which provisions will terminate
upon the consummation of the Exchange Offer, and (ii) holders of New Notes will
not be entitled to certain registration rights that holders of Existing Notes
have under the Registration Rights Agreement, except under limited
circumstances.
Interest on each New Note issued pursuant to the Exchange Offer will accrue
from the last interest payment date on which interest was paid on the Existing
Notes surrendered in exchange therefor or, if no interest has been paid, from
the original date of issuance of the Existing Notes.
The Exchange Offer is not conditioned upon any minimum number of Existing
Notes being tendered for exchange. The Exchange Offer will expire at 5:00 p.m.,
New York City time, on , 1998, unless extended by the Issuers (such date as
it may be so extended, the "Expiration Date"). The date of acceptance for
exchange of the Existing Notes (the "Exchange Date") will be the first business
day following the Expiration Date, upon surrender of the Existing Notes.
Existing Notes tendered pursuant to the Exchange Offer may be withdrawn at any
time prior to the Expiration Date; otherwise such tenders are irrevocable. New
Notes to be issued in exchange for properly tendered Existing Notes will be
delivered through the facilities of The Depository Trust Company by the
Exchange Agent (as defined) promptly after the acceptance thereof.
(continued on next page)
SEE "RISK FACTORS" BEGINNING ON PAGE 16 FOR A DISCUSSION OF CERTAIN FACTORS
THAT SHOULD BE CONSIDERED IN CONNECTION WITH AN INVESTMENT IN THE NOTES.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus is , 1998.
<PAGE>
(Continued from front cover)
Each Note will represent the several obligations of the Issuers. The U.S.
Issuer will be severally liable with respect to the payment of $600 of each
$1,000 principal amount of the Notes, together with interest on such amount
(the "U.S. Issuer's Obligations"), and Jafra S.A. will be severally liable
with respect to the payment of $400 of each $1,000 principal amount of the
Notes, together with interest on such amount ("Jafra S.A.'s Obligations" and,
together with the U.S. Issuer's Obligations, the "Obligations"). Each Issuer
is an indirect, wholly owned subsidiary of CDRJ Investments (Lux) S.A., a
Luxembourg societe anonyme ("Parent"), which will fully and unconditionally
guarantee the Notes on a senior subordinated basis on the terms provided in
the Indenture (as defined) governing the Notes (the "Parent Guarantee").
Each Issuer's Obligations will also be guaranteed by the other Issuer on a
senior subordinated basis on the terms provided in the Indenture, including a
30-day standstill period prior to enforcement of such guarantee (such
guarantee by Jafra S.A., the "Jafra S.A. Cross Guarantee," and such guarantee
by the U.S. Issuer, the "U.S. Issuer Cross Guarantee;" such guarantees
collectively, the "Cross Guarantees"). The U.S. Issuer's Obligations,
including the U.S. Issuer Cross Guarantee, will also be fully and
unconditionally guaranteed by each subsequently acquired or organized U.S.
subsidiary of the U.S. Issuer (together with the Parent Guarantee and the
Jafra S.A. Cross Guarantee, the "U.S. Guarantees"), subject to certain
exceptions. Jafra S.A.'s Obligations, including the Jafra S.A. Cross
Guarantee, will also be fully and unconditionally guaranteed by each existing
and subsequently acquired or organized subsidiary of Jafra S.A. (the "Jafra
S.A. Subsidiary Guarantees" and, together with the Parent Guarantee and the
U.S. Issuer Cross Guarantee, the "Jafra S.A. Guarantees," and together with
the U.S. Guarantees, the "Guarantees;" each guarantor thereunder being a "Note
Guarantor"). The U.S. Issuer is an operating company in the United States that
conducts its non-U.S. operations through non-U.S. subsidiaries and that, at
present, has no U.S. subsidiaries. Accordingly, at present, there are no
subsidiary guarantors of the U.S. Issuer's Obligations. Each of Parent and
Jafra S.A. is a holding company that conducts all of its operations through
subsidiaries. At present, Jafra S.A. has six operating subsidiaries,
Consultoria Jafra, S.A. de C.V., Dirsamex, S.A. de C.V., Distribuidora Venus,
S.A. de C.V., Jafra Cosmetics S. de R.L. de C.V., Qualifax, S.A. de C.V. and
Reday, S.A. de C.V., each of which is organized under the laws of the United
Mexican States. Jafra S.A.'s six operating subsidiaries are jointly and
severally liable under the Jafra S.A. Subsidiary Guarantee. Because the Jafra
S.A. Subsidiary Guarantee constitutes a full and unconditional guarantee of
Jafra S.A.'s Obligations, including the Jafra S.A. Cross Guarantee of the U.S.
Issuer's Obligations, Jafra S.A.'s subsidiaries indirectly support the U.S.
Issuer's Obligations, subject to the 30-day standstill period prior to
enforcement of the Jafra S.A. Cross Guarantee.
Except as described below, the Notes will not be redeemable at the option of
the Issuers prior to May 1, 2003. On or after such date, the Issuers may
concurrently redeem the Notes in whole or in part on a pro rata basis (based
on the relative proportions of the JCI Portion (as defined) and the Jafra S.A.
Portion (as defined)) at any time at the redemption prices set forth herein
plus accrued and unpaid interest, if any, to the date of redemption. In
addition, at any time and from time to time on or prior to May 1, 2001, the
Issuers may concurrently redeem the Notes on a pro rata basis (based on the
relative proportions of the JCI Portion and the Jafra S.A. Portion) in an
aggregate principal amount equal to up to 35% of the original principal amount
of the Notes with the proceeds of one or more Equity Offerings (as defined),
at a redemption price set forth herein, provided that an aggregate principal
amount of Notes equal to at least 65% of the original aggregate principal
amount of the Notes remains outstanding immediately after each such
redemption. The Notes will not be subject to any sinking fund requirement.
Upon the occurrence of a Change of Control (as defined), if the Issuers do not
redeem the Notes, the holders of the Notes will have the right, subject to
certain exceptions, to require the Issuers to make an offer to repurchase the
Notes at a purchase price equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the date of repurchase. There can be
no assurance that, in the event of a Change of Control, the Issuers will have
available sufficient funds to repurchase the Notes. See "Risk Factors-- Risk
of Insufficient Funds Upon Change of Control." The Jafra S.A. Portion may be
redeemed, at the option of Jafra S.A., at any time at a redemption price equal
to 100% of the principal amount thereof, together with accrued and unpaid
interest to the date fixed for redemption, if any, if, as a result of any
change in, or amendment to applicable treaties or laws of Mexico, Jafra S.A.,
any successor of Jafra S.A. or any Note Guarantor of such
ii
<PAGE>
Jafra S.A. Portion would be obligated to pay Additional Amounts (as defined)
in excess of the Additional Amounts that Jafra S.A., any successor to Jafra
S.A. or such Note Guarantor would be required to pay if payments by Jafra
S.A., any successor to Jafra S.A. or such Note Guarantor were subject to a 15%
Mexican withholding tax. See "Description of Notes."
The Notes and the Guarantees will be unsecured Senior Subordinated
Indebtedness (as defined) of the Issuers or the relevant Note Guarantor. The
Notes and the Guarantees will be subordinated in right of payment to all
existing and future Senior Indebtedness (as defined) of the Issuers or the
relevant Note Guarantor including such Person's (as defined) obligations under
the Senior Credit Agreement (as defined). The Notes will rank pari passu in
right of payment with all existing and future Senior Subordinated Indebtedness
of the Issuers or the relevant Note Guarantor, and will be senior in right of
payment to all existing and future Subordinated Obligations (as defined) of
the Issuers or the relevant Note Guarantor. The Notes and the Guarantees will
also be effectively subordinated to any Secured Indebtedness (as defined) of
the Issuers or the relevant Note Guarantor to the extent of the value of the
assets securing such Indebtedness. The Indenture permits the Company to incur
additional indebtedness, including Senior Indebtedness, subject to certain
limitations. As of September 30, 1998, the Issuers had approximately $45.7
million in Senior Indebtedness, all of which was guaranteed by, and
constitutes Senior Indebtedness of, the Note Guarantors, which in each case is
senior in right of payment to the Notes. As of September 30, 1998, the Issuers
and the Note Guarantors had $100 million in Senior Subordinated Indebtedness.
As of September 30, 1998, none of the Issuers and the Note Guarantors had
incurred any Subordinated Indebtedness, and, as such, none has any
Indebtedness that ranks subordinate in right of payment to the Notes. See
"Description of Notes--Ranking."
The Existing Notes were originally issued and sold in a transaction not
registered under the Securities Act (the "Offering") in reliance upon an
exemption from the registration requirements thereof. In general, the Existing
Notes may not be offered or sold unless registered under the Securities Act,
except pursuant to an exemption from, or in a transaction not subject to, the
Securities Act. The New Notes are being offered hereby in order to satisfy
certain obligations of the Issuers contained in the Registration Rights
Agreement. Based on interpretations by the staff of the Securities and
Exchange Commission (the "Commission") as set forth in no-action letters
issued to third parties, the Issuers believe that New Notes issued pursuant to
the Exchange Offer in exchange for the Existing Notes may be offered for
resale, resold or otherwise transferred by holders thereof (other than any
such holder that is a broker-dealer or an "affiliate" of the Issuers within
the meaning of Rule 405 of the Securities Act) without compliance with the
registration and prospectus delivery provisions of the Securities Act,
provided that such holder represents to the Company that (i) any New Notes
received by such holder will be acquired in the ordinary course of business,
(ii) such holder will have no arrangements or understanding with any person to
participate in the distribution of the Existing Notes or the New Notes within
the meaning of the Securities Act, (iii) such holder is not an "affiliate," as
defined in Rule 405 of the Securities Act, of the Issuers or if it is an
affiliate, such holder will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, (iv) if
such holder is not a broker-dealer, that it is not engaged in, and does not
intend to engage in the distribution of the New Notes, (v) if such holder is a
broker-dealer, that it will receive New Notes for its own account in exchange
for Existing Notes that were acquired as a result of market-making activities
or other trading activities and that it will deliver a prospectus in
connection with any resale of such New Notes, and (vi) that it is not acting
on behalf of any person who could not truthfully make the foregoing
representations. If a holder of Existing Notes is unable to make the foregoing
representations, such holder may not rely on the applicable interpretation of
the staff of the Commission as set forth in such no-action letters and must
comply with the registration and prospectus delivery requirements of the
Securities Act in connection with any secondary resale transaction. Broker-
dealers that acquired the Existing Notes directly from the Issuers may not
rely on such interpretations of the staff of the Commission, must comply with
the registration and prospectus delivery requirements of the Securities Act
(including being named as selling security holders) in order to resell the
Existing Notes and may not participate in the Exchange Offer. In addition,
since the Issuers have not sought, and do not intend to seek, a no-action
letter, there can be no assurance that the staff of the Commission would make
a similar determination with respect to the Exchange Offer.
iii
<PAGE>
Notwithstanding the foregoing, each broker-dealer that receives New Notes
for its own account pursuant to the Exchange Offer in exchange for Existing
Notes, where such Existing Notes were acquired by such broker-dealer as a
result of market-making activities or other trading activities must
acknowledge that it will deliver a prospectus meeting the requirements of the
Securities Act and that it has not entered into any arrangement or
understanding with the Issuers or an affiliate of the Issuers to distribute
the New Notes in connection with any resale of such New Notes. A broker-dealer
that acquired Existing Notes in a transaction other than as part of its
market-making activities or other trading activities will not be able to
participate in the Exchange Offer. The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an "underwriter" within the meaning of the
Securities Act. This Prospectus, as it may be amended or supplemented from
time to time, may be used by a broker-dealer in connection with resales of New
Notes received in exchange for Existing Notes where such Existing Notes were
acquired by such broker-dealer as a result of market-making activities or
other trading activities. The Issuers and the Note Guarantors have agreed
that, for a period of 90 days after the Expiration Date (as defined herein),
they will make this Prospectus available to any broker-dealer for use in
connection with any such resale. Any holder that cannot rely upon such
interpretations by the staff of the Commission as set forth in such no-action
letters must comply with the registration and prospectus delivery requirements
of the Securities Act in connection with a secondary resale transaction. See
"The Exchange Offer" and "Plan of Distribution."
The New Notes will be represented by one or more Global Securities (as
defined) registered in the name of a nominee of The Depository Trust Company,
as Depositary. Beneficial interest in the Global Securities will be shown on,
and transfers will be effected only through, records maintained by the
Depositary and its participants. See "Description of New Notes--Book-Entry,
Delivery and Form."
There has not previously been any public market for the New Notes. The
Issuers do not intend to list the New Notes on any securities exchange or to
seek approval for quotation through any automated quotation system. There can
be no assurance that an active market for the New Notes will develop.
Moreover, to the extent that Existing Notes are tendered and accepted in the
Exchange Offer, a holder's ability to sell untendered, and tendered but
unaccepted, Existing Notes could be adversely affected. See "Risk Factors--
Lack of Established Market for the Existing Notes."
The Issuers will not receive any proceeds from the Exchange Offer. The
Issuers have agreed to pay the expenses of the Exchange Offer. No dealer
manager is being utilized in connection with the Exchange Offer.
THE EXCHANGE OFFER IS NOT BEING MADE, NOR WILL THE ISSUERS ACCEPT SURRENDER
FOR EXCHANGE FROM HOLDERS OF EXISTING NOTES, IN ANY JURISDICTION IN WHICH THE
EXCHANGE OFFER OR THE ACCEPTANCE THEREOF WOULD NOT BE IN COMPLIANCE WITH THE
SECURITIES AND BLUE SKY LAWS OF SUCH JURISDICTION.
----------------
iv
<PAGE>
AVAILABLE INFORMATION
The Issuers and the Note Guarantors have filed with the Commission a
Registration Statement (which term includes any amendments thereto, the
"Registration Statement") on Form S-4 under the Securities Act, with respect to
the New Notes offered hereby. As permitted by the rules and regulations of the
Commission, this Prospectus does not contain all of the information included in
the Registration Statement and the exhibits and schedules thereto. Statements
contained in this Prospectus as to the contents of any contract or other
document referred to herein or therein and filed as an exhibit to the
Registration Statement are not necessarily complete and, in each instance,
reference is made to the copy of such contract or other document filed as an
exhibit to the Registration Statement, each such statement being qualified in
all respects by such reference. For further information with respect to the
Issuers and the Note Guarantors and the New Notes, reference is hereby made to
the Registration Statement and the exhibits and schedules thereto.
The Issuers and the Note Guarantors are not currently subject to the periodic
reporting and other informational requirements of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). Pursuant to the Indenture, the
Issuers and the Note Guarantors have agreed to file with the Commission and
provide to the holders of the Notes annual reports and the information,
documents and other reports that are specified in Sections 13 and 15 (d) of the
Exchange Act. Such reports and other information may be inspected and copied at
the public reference facilities maintained by the Commission at Room 1024, 450
Fifth Street, N.W., Judiciary Plaza, Washington, D.C. 20549 and at the regional
offices of the Commission located at 7 World Trade Center, 13th Floor, New
York, New York 10048 and Suite 1400, Northwestern Atrium Center, 14th Floor,
500 West Madison Street, Chicago, Illinois 60661. Copies of such material can
also be obtained at prescribed rates by writing to the Commission, Public
Reference Section, 450 Fifth Street, N.W., Washington, D.C. 20549 and such
material is contained on the World Wide Web site maintained by the Commission
at http://www.sec.gov.
v
<PAGE>
PROSPECTUS SUMMARY
The following summary is qualified in its entirety by, and should be read in
conjunction with, the more detailed information and financial statements,
including the notes thereto appearing elsewhere in this Prospectus. Unless the
context otherwise requires, prior to the consummation of the Acquisition (as
defined), the terms "Jafra" and the "Company" refer to the various subsidiaries
and divisions of The Gillette Company ("Gillette") conducting the worldwide
Jafra cosmetics business (the "Jafra Business"), and, following the
consummation of the acquisition of the Jafra Business from Gillette (the
"Acquisition"), to Parent and its subsidiaries. The market share and
competitive position data contained in this Prospectus are approximations
derived from industry sources, which the Company has not independently
verified, or from Company estimates which the Company believes to be
reasonable. Adorisse, Advanced Time Protector, Always Color, Aromascape, Daily
Essentials, Eau D'Aromes, Fm Force Magnetique, Jafra, JF9, Legend for Men, Le
Moire, Optimascara, Optimeyes, Precious Protein, Rediscover, Royal Almond,
Royal Jelly Body Complex, Royal Jelly Milk Balm Moisture Lotion, Skin Firming
Complex Time Corrector and Time Protector are trademarks or registered
trademarks of the Company.
THE COMPANY
Jafra is a direct seller of premium skin and body care products, color
cosmetics, fragrances, nutritional supplements and other personal care
products. Jafra currently operates in ten countries directly and in a number of
additional countries through distributors, although approximately 86% of the
Company's sales in 1997 were in the United States, Mexico and Germany. Jafra
markets its products through a direct selling, multi-level distribution system
comprised of approximately 235,100 self-employed salespersons (known as "sales
representatives"). The Company seeks to provide its sales representatives
attractive and flexible career opportunities selling quality products at
affordable prices. Jafra's sales representatives have the opportunity to earn
significant income and to receive non-financial awards designed to motivate and
recognize individual achievement.
The Parent's principal executive offices are located at 10, rue Antione Jans,
L-1820 Luxembourg, Luxembourg and its telephone number is (352) 476-867-1. The
U.S. Issuer's principal executive offices are located at 2451 Townsgate Road,
Westlake Village, California, U.S.A. and its telephone number is (805)
449-3000. Jafra S.A.'s principal executive offices are located at Blvd. Adolfo
Lopez Mateos #515, Colonia Tlacopac, 01040, Mexico, D.F. and its telephone
number is (525) 490-1800.
OPERATING STRENGTHS
Jafra believes that, as a result of the strong infrastructure created to
date, it is well-positioned to increase sales and profitability under the
Company's new, focused ownership and management. The Company's operating
strengths include the following:
Motivated and Loyal Sales Representative Base. Jafra has built a motivated,
well-trained and loyal direct sales force of approximately 235,100 self-
employed independent sales representatives. The average Jafra sales
representative has been affiliated with the Company for approximately four
years, which the Company believes is among the highest average tenure in the
direct selling industry. The Company offers its sales representatives
attractive opportunities for career development and significant potential for
financial rewards. Jafra sales representatives earn income on their own sales
and can also earn commissions on sales made by the sales representatives they
recruit. The Company's worldwide sales representative base grew 5.9% to
approximately 220,800 at the end of 1997 from approximately 208,500 at the end
of 1996. As of June 30, 1998, the Company's worldwide sales representative base
had increased to 235,100, an increase of 6.5% over December 31, 1997.
1
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Prestige Quality Product Offerings. The Company offers diverse, prestige
quality product lines that it believes appeal to a wide customer base, build
brand equity and product loyalty, and lead to repeat purchases. The Company
positions its products to appeal to middle income, value oriented consumers,
generally pricing below the prestige level.
Significant Investment in Operating Infrastructure. Over the last three
years, Jafra has invested approximately $30 million in new infrastructure,
including a customer service and office facility in Mexico, new machinery and
equipment, and upgraded data processing capabilities. The Company's
manufacturing facilities in Westlake Village, California, which produces skin
care products, and in Naucalpan, Mexico, which produces color cosmetics, are
equipped with some of the latest manufacturing technologies.
Geographic Diversification. The Company currently operates in ten countries
directly and through distributors in a number of additional countries. The
Company's most important markets to date have been the United States, Mexico
and Germany, which represented approximately 31%, 43% and 13%, respectively, of
total 1997 sales and 31%, 46% and 10%, respectively, of 1998 sales as of June
30, 1998. With significant revenue coming from each of the United States, Latin
America and Europe, the Company believes that it is less vulnerable to adverse
economic developments in any particular market. The Company expects that future
growth in the United States and in new markets will lead to greater
diversification of the sources of revenue.
STRATEGY
The Company's new owners and management intend to build on Jafra's strong
existing infrastructure and to increase the Company's sales and profitability
by pursuing the following strategy:
Deploy New Senior Management Team with Significant Direct Selling
Experience. In connection with the Acquisition, Ronald B. Clark joined the
Company as its Chairman and Chief Executive Officer, Gonzalo R. Rubio joined as
its President and Chief Operating Officer, Michael DiGregorio joined as its
President of United States Operations, Eugenio Lopez Barrios joined as its
President of Mexican Operations, Jose Luis Peco joined as its President of
European Operations, Jaime Lopez Guirao joined as its President of Global
Operations and Alan Fearnley joined as its Senior Vice President of Global
Marketing. Management has an average of over 20 years of direct selling
industry experience, including various senior management positions with Jafra
competitors Avon and Mary Kay. Jafra believes that this new team will provide
the dynamic leadership required to attract new sales representatives and
management talent, inspire new and existing sales representatives to greater
productivity and execute the Company's new market development strategy. See
"Management."
Grow Sales Representative Base in Existing Markets. Jafra plans to expand its
sales representative base in existing markets by (i) targeting U.S. expansion
into new geographic areas and demographic groups, (ii) streamlining the
commission structure to provide more rewards to those sales representatives who
actively recruit other sales representatives, (iii) providing more training in
business skills and recruiting techniques to sales representative managers, and
(iv) initiating programs to reactivate former or inactive sales
representatives.
Increase Sales Representative Productivity. The Company plans to focus on
increasing the productivity, as measured by sales per sales representative, of
its existing sales representatives by (i) expanding the Company's product
lines, (ii) initiating better-targeted marketing activities and (iii)
decreasing lead time on new product introductions.
Develop New Markets. The Company expects that it will be able to implement
its new market development strategy with limited additional capital
expenditures and without diverting focus from the Company's core markets due to
its existing distribution and manufacturing capabilities. The Company's new
senior management team has extensive experience and a proven track record in
developing new markets in Latin
2
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America and Central and Eastern Europe. The Company intends to focus its
expansion efforts on markets that the Company believes (i) do not require high
start-up costs, such as markets contiguous to the Company's existing markets,
(ii) have proven receptive to direct selling techniques, (iii) demonstrate
promising economic demographics, including population size, growth of gross
domestic product and an expanding middle class, and (iv) evidence demand for
quality cosmetic products.
Improve Operating Efficiency. The Company's new management team believes that
opportunities exist to improve operating efficiency through cost-cutting,
better inventory management, and streamlining of marketing efforts and product
lines.
THE SPONSOR
Clayton, Dubilier & Rice, Inc. ("CD&R") is a private investment firm
specializing in acquisitions that involve management participation. The firm
currently manages a pool of equity capital of approximately $1.5 billion. Since
its founding in 1978, CD&R has sponsored the acquisition of 29 businesses,
primarily divisions of large corporations, with combined annual sales in excess
of $17 billion. The firm has successfully worked with the management teams of
acquired companies to substantially improve their operations and profitability.
Like Jafra, several of these companies were owned by large corporations and did
not represent core strategic businesses for their respective owners. Examples
of such CD&R acquisitions include: Allison Engine Company Inc. (formerly owned
by General Motors), Lexmark International, Inc. (formerly owned by IBM), WESCO
Distribution, Inc. (formerly owned by Westinghouse Corp.) and Alliant
Foodservice, Inc. (formerly owned by Kraft General Foods). CD&R has worked
successfully with these companies to refocus core operations, which has led to
significant gains in productivity and profitability, although there can be no
assurance that CD&R will realize similar success with the Company.
THE TRANSACTIONS
On April 30, 1998, Parent completed the Acquisition of the Jafra Business
pursuant to an Acquisition Agreement, dated January 26, 1998, as amended (the
"Acquisition Agreement") between Parent, an affiliate of Parent and Gillette.
Parent was organized to effect the Acquisition. Parent and certain of its
subsidiaries were formed by Clayton, Dubilier & Rice Fund V Limited
Partnership, a Cayman Islands exempted limited partnership ("CD&R Fund V")
managed by CD&R. See "The Sponsor."
Concurrently with and as part of the financing for the Acquisition, (i) CD&R
Fund V and certain members of new management (Messrs. Clark, Rubio and Mason)
made an equity investment in Parent of $78.9 million in cash, (ii) the Issuers
issued the Existing Notes pursuant to the Offering and (iii) Parent and the
Issuers entered into a credit agreement (the "Senior Credit Agreement") with
certain lenders providing for senior secured credit facilities, including a
$25.0 million term loan facility (the "Term Loan Facility") (all of which was
drawn at the Closing) and a $65.0 million revolving credit facility (the
"Revolving Credit Facility," and, together with the Term Loan Facility, the
"Credit Facilities") (approximately $15.0 million of which has been drawn in
connection with the Transactions). See "Description of the Senior Credit
Agreement." The Offering and the initial borrowings under the Senior Credit
Agreement are referred to collectively as the "Financings." The Acquisition,
the Financings, the equity contribution by CD&R Fund V and certain members of
new management and the payment of related transaction fees and expenses are
referred to collectively as the "Transactions." See "Management" for a
description of equity investments in Parent by members of management.
3
<PAGE>
The following chart depicts the organizational structure of Parent and its
subsidiaries (omitting certain intermediate holding companies). At present, the
U.S. Issuer has no U.S. subsidiaries.
USE OF PROCEEDS OF OFFERING
The Company will not receive any proceeds from the Exchange Offer. As
described under "The Transactions," the net proceeds of the Offering, together
with other sources of financing, were used to fund the purchase price of the
Acquisition and pay related transaction fees and expenses.
4
<PAGE>
THE EXCHANGE OFFER
REGISTRATION AGREEMENT...... The Existing Notes were issued on April 30, 1998
to Credit Suisse First Boston and Chase
Securities Inc. (together, the "Initial
Purchasers"). The Initial Purchasers resold the
Existing Notes to certain qualified institutional
buyers in reliance on, and subject to the
restrictions imposed pursuant to, Rule 144A of
the Securities Act. In connection therewith, the
Company and the Initial Purchasers entered into
the Registration Rights Agreement, dated as of
April 30, 1998 (the "Registration Rights
Agreement"), providing, among other things, for
the Exchange Offer. See "The Exchange Offer."
THE EXCHANGE OFFER.......... New Notes are being offered in exchange for an
equal principal amount of Existing Notes. As of
the date hereof, $100,000,000 aggregate principal
amount of Existing Notes is outstanding. Existing
Notes may be tendered only in integral multiples
of $1,000.
RESALE OF NEW NOTES......... Based on interpretations by the staff of the
Securities and Exchange Commission (the
"Commission") as set forth in no-action letters
issued to third parties, the Issuers believe that
New Notes issued pursuant to the Exchange Offer
in exchange for the Existing Notes may be offered
for resale, resold and otherwise transferred by
holders thereof (other than any such holder that
is a broker-dealer or an "affiliate" of the
Issuers within the meaning of Rule 405 of the
Securities Act) without compliance with the
registration and prospectus delivery provisions
of the Securities Act, provided that such holder
represents to the Company that (i) any New Notes
received by such holder will be acquired in the
ordinary course of business, (ii) such holder
will have no arrangements or understanding with
any person to participate in the distribution of
the Existing Notes or the New Notes within the
meaning of the Securities Act, (iii) such holder
is not an "affiliate," as defined in Rule 405 of
the Securities Act, of the Issuers or if it is an
affiliate, such holder will comply with the
registration and prospectus delivery requirements
of the Securities Act to the extent applicable,
(iv) if such holder is not a broker-dealer, that
it is not engaged in, and does not intend to
engage in the distribution of the New Notes, (v)
if such holder is a broker-dealer, that it will
receive New Notes for its own account in exchange
for Existing Notes that were acquired as a result
of market-making activities or other trading
activities and that it will deliver a prospectus
in connection with any resale of such New Notes,
and (vi) that it is not acting on behalf of any
person who could not truthfully make the
foregoing representations. If a holder of
Existing Notes is unable to make the foregoing
representations, such holder may not rely on the
applicable interpretation of the staff of the
Commission as set forth in such no-action letters
and must comply with the registration and
prospectus delivery requirements of the
Securities Act in connection
5
<PAGE>
with any secondary resale transaction. Broker-
dealers that acquired the Existing Notes directly
from the Issuers may not rely on such
interpretations of the staff of the Commission,
must comply with the registration and prospectus
delivery requirements of the Securities Act
(including being named as selling security
holders) in order to resell the Existing Notes
and may not participate in the Exchange Offer. In
addition, since the Issuers have not sought, and
do not intend to seek, their own no-action
letter, there can be no assurance that the staff
of the Commission would make a similar
determination with respect to the Exchange Offer.
Notwithstanding the foregoing, each broker-dealer
that receives New Notes for its own account
pursuant to the Exchange Offer in exchange for
Existing Notes, where such Existing Notes were
acquired by such broker-dealer as a result of
market-making activities or other trading
activities must acknowledge that it will deliver
a prospectus meeting the requirements of the
Securities Act and that it has not entered into
any arrangement or understanding with the Issuers
or an affiliate of the Issuers to distribute the
New Notes in connection with any resale of such
New Notes. A broker- dealer that acquired
Existing Notes in a transaction other than as
part of its market-making activities or other
trading activities will not be able to
participate in the Exchange Offer. The Letter of
Transmittal states that by so acknowledging and
by delivering a prospectus, a broker-dealer will
not be deemed to admit that it is an
"underwriter" within the meaning of the
Securities Act. This Prospectus, as it may be
amended or supplemented from time to time, may be
used by a broker-dealer in connection with
resales of New Notes received in exchange for
Existing Notes where such Existing Notes were
acquired by such broker-dealer as a result of
market-making activities or other trading
activities. The Issuers and the Note Guarantors
have agreed that, for a period of 90 days after
the Expiration Date (as defined herein), it will
make this Prospectus available to any broker-
dealer for use in connection with any such
resale. Any holder that cannot rely upon such
interpretations by the Staff of the Commission as
set forth in such no-action letters must comply
with the registration and prospectus delivery
requirements of the Securities Act in connection
with a secondary resale transaction. See "The
Exchange Offer" and "Plan of Distribution."
CONSEQUENCES OF FAILURE TO
EXCHANGE EXISTING NOTES.... Upon consummation of the Exchange Offer, subject
to certain limited exceptions, holders of
Existing Notes who do not exchange their Existing
Notes for New Notes in the Exchange Offer will no
longer be entitled to registration rights and
will not be able to offer or sell their Existing
Notes, unless such Existing Notes are
subsequently registered under the Securities Act
(which, subject to certain limited exceptions,
the Issuers and the Note Guarantors will have no
obligation to do), except pursuant to an
exemption from, or in a transaction not subject
to, the Securities Act and applicable state
6
<PAGE>
securities laws. See "The Exchange Offer--Terms
of the Exchange Offer" and "--Consequences of
Failure to Exchange."
EXPIRATION DATE.............
The Exchange Offer will expire at 5:00 p.m., New
York City time, on , 1998 ( business days
following the commencement of the Exchange
Offer), unless the Exchange Offer is extended, in
which case the term "Expiration Date" means the
latest date and time to which the Exchange Offer
is extended.
INTEREST ON THE NEW NOTES... The New Notes will accrue interest at a rate of
11 3/4% per annum from April 30, 1998, the issue
date of the Existing Notes. Interest on the New
Notes is payable on May 1 and November 1 of each
year, commencing on November 1, 1998. See
"Registration Rights" and "Description of Notes--
Terms of the Notes."
CONDITIONS TO THE EXCHANGE
OFFER....................... The Exchange Offer is not conditioned upon any
minimum principal amount of Existing Notes being
tendered for exchange. However, the Exchange
Offer is subject to certain customary conditions,
which may be waived by the Issuers. See "The
Exchange Offer--Conditions." Except for the
requirements of applicable federal and state
securities laws, there are no federal or state
regulatory requirements to be complied with or
obtained by the Issuers in connection with the
Exchange Offer.
PROCEDURES FOR TENDERING
EXISTING NOTES............. Each holder of Existing Notes wishing to accept
the Exchange Offer must complete, sign and date
the Letter of Transmittal, or a facsimile
thereof, in accordance with the instructions
contained herein and therein, and mail or
otherwise deliver such Letter of Transmittal, or
such facsimile, together with any other required
documentation to the Exchange Agent (as defined
herein) at the address set forth herein and
effect a tender of Existing Notes pursuant to the
procedures for book entry transfer as provided
for herein. See "The Exchange Offer Procedures
for Tendering" and "--Book Entry Transfer."
GUARANTEED DELIVERY Holders of Existing Notes who wish to tender
PROCEDURES.................. their Existing Notes and who cannot deliver their
Existing Notes and a properly completed Letter of
Transmittal or any other documents required by
the Letter of Transmittal to the Exchange Agent
prior to the Expiration Date may tender their
Existing Notes according to the guaranteed
delivery procedures set forth in "The Exchange
Offer--Guaranteed Delivery Procedures."
WITHDRAWAL RIGHTS...........
Tenders of Existing Notes may be withdrawn to any
time prior to 5:00 p.m., New York City time, on
the Expiration Date. To withdraw a tender of
Existing Notes, a written or facsimile
transmission notice of withdrawal must be
received by the Exchange Agent at its address set
forth herein under "The Exchange Offer-- Exchange
Agent" prior to 5:00 p.m., New York City time, on
the Expiration Date.
7
<PAGE>
ACCEPTANCE OF EXISTING
NOTES AND DELIVERY OF NEW Subject to certain conditions, any and all
NOTES...................... Existing Notes that are properly tendered in the
Exchange Offer prior to 5:00 p.m., New York City
time, on the Expiration Date will be accepted for
exchange. The New Notes issued pursuant to the
Exchange Offer will be delivered promptly
following the Expiration Date. See "The Exchange
Offer--Terms of the Exchange Offer."
TAX CONSEQUENCES....... The exchange of Existing Notes for New Notes will
not constitute a taxable exchange for U.S.
federal income tax purposes. See "Taxation."
EXCHANGE AGENT/TRUSTEE...... The State Street Bank and Trust Company is
serving as exchange agent (the "Exchange Agent"
and the "Trustee") in connection with the
Exchange Offer.
FEES AND EXPENSES........... All expenses incident to the Issuers'
consummation of the Exchange Offer and compliance
with the Registration Agreement will be borne by
the Issuers. See "The Exchange Offer--Fees and
Expenses."
USE OF PROCEEDS............. The Issuers will not receive any proceeds from
the Exchange Offer. The net proceeds from the
Offering, together with other sources of
financing, were used to fund the purchase price
of the Acquisition and pay transaction-related
fees and expenses. See "The Transactions."
SUMMARY OF TERMS OF NEW NOTES
The Exchange Offer relates to the exchange of up to $100,000,000 aggregate
principal amount of Existing Notes for an equal aggregate principal amount of
New Notes. New Notes will be entitled to the benefits of the same Indenture (as
defined therein) that governs the Existing Notes and will govern the New Notes.
The form and terms of the New Notes are identical in all material respects to
the form and terms of the Existing Notes, except that (i) the New Notes will
have been registered under the Securities Act, and thus will not bear
restrictive legends restricting their transfer pursuant to the Securities Act
and will not contain certain provisions providing for an increase in the
interest rate on the Existing Notes under certain circumstances described in
the Registration Rights Agreement (as defined), which provisions will terminate
upon the consummation of the Exchange Offer and (ii) holders of New Notes will
not be entitled to certain registration rights that holders of Existing Notes
have under the Registration Rights Agreement, except under limited
circumstances . See "Description of Notes."
ISSUERS..................... The U.S. Issuer and Jafra S.A., on a several
basis.
May 1, 2008.
MATURITY....................
INTEREST PAYMENT DATES...... May 1 and November 1 of each year, commencing
November 1, 1998.
U.S. ISSUER'S OBLIGATIONS
UNDER THE NOTES............ The U.S. Issuer will be severally liable with
respect to the payment of $600 of each $1,000
principal amount of the Notes, together with
interest on such amount.
8
<PAGE>
JAFRA S.A.'S OBLIGATIONS
UNDER THE NOTES............ Jafra S.A. will be severally liable with respect
to the payment of $400 of each $1,000 principal
amount of the Notes, together with interest on
such amount.
PARENT GUARANTEE............ The Notes will be fully and unconditionally
guaranteed on a senior subordinated basis by
Parent on the terms provided in the Indenture.
CROSS GUARANTEES............ Each Issuer will guarantee the other Issuer's
payment obligations under the Notes on a senior
subordinated basis on the terms provided in the
Indenture, including a 30-day standstill period
prior to enforcement of its Cross Guarantee.
SUBSIDIARY GUARANTEES....... The U.S. Issuer's obligations under the Notes,
including the U.S. Issuer Cross Guarantee, will
be fully and unconditionally guaranteed on a
senior subordinated basis by each subsequently
acquired or organized U.S. subsidiary of the U.S.
Issuer on the terms provided in the Indenture,
subject to certain exceptions. At present, the
U.S. Issuer does not have any U.S. subsidiaries.
Jafra S.A.'s obligations under the Notes,
including the Jafra S.A. Cross Guarantee, will be
fully and unconditionally guaranteed by each
existing and subsequently acquired or organized
subsidiary of Jafra S.A. on the terms provided in
the Indenture. See "Description of Notes--Note
Guarantees."
OPTIONAL REDEMPTION......... The Notes will be concurrently redeemable at the
option of the Issuers (i) at any time and from
time to time prior to May 1, 2001, on a pro rata
basis (based on the relative proportions of the
JCI Portion and the Jafra S.A. Portion) in an
aggregate principal amount equal to up to 35% of
the original principal amount of the Notes with
the proceeds of one or more Equity Offerings, at
a redemption price set forth herein, provided
that an aggregate principal amount of Notes equal
to at least 65% of the original aggregate
principal amount of the Notes remains outstanding
immediately after each such redemption, and (ii)
in whole or in part at any time on or after May
1, 2003, at the redemption prices set forth
herein, in each case plus accrued and unpaid
interest, if any, to the date of redemption
(subject to the right of holders of record on the
relevant record date to receive interest due on
the relevant payment date). Any such partial
redemption will be made by both Issuers
concurrently on a pro rata basis (based on the
relative proportions of the JCI Portion and the
Jafra S.A. Portion). See "Description of Notes--
Optional Redemption."
REDEMPTION FOR TAX REASONS.. Jafra S.A.'s Obligations may be redeemed, at the
option of Jafra S.A., at any time at a redemption
price equal to 100% of the principal amount
thereof, together with accrued interest to the
date fixed for redemption, if any, if, as a
result of any change in, or amendment to
applicable treaties or laws of Mexico, Jafra
S.A., any successor to Jafra S.A. or any Note
Guarantor of the Jafra S.A. Portion would be
obligated to pay Additional Amounts in excess of
9
<PAGE>
the Additional Amounts that Jafra S.A., any
successor to Jafra S.A. or such Note Guarantor
would be required to pay if payments by Jafra
S.A., any successor to Jafra S.A. or such Note
Guarantor were subject to a 15% Mexican
withholding tax. See "Description of Notes--
Redemption for Changes in Withholding Taxes."
CHANGE OF CONTROL...........
In the event of a Change of Control, if the
Issuers do not redeem the Notes, the holders of
the Notes will have the right, subject to certain
exceptions, to require the Issuers to repurchase
such holder's Notes at a purchase price equal to
101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the date
of redemption (subject to the right of holders of
record on the relevant record date to receive
interest due on the relevant payment date). There
can be no assurance that, in the event of a
Change of Control, the Issuers will have
available sufficient funds to repurchase the
Notes. See "Description of Notes--Change of
Control" and "Risk Factors--Risk of Insufficient
Funds Upon Change of Control."
RANKING.....................
The Notes will be unsecured Senior Subordinated
Indebtedness of the Issuers or the relevant Note
Guarantor. The Notes will be subordinated in
right of payment to the payment when due of all
existing and future Senior Indebtedness of the
Issuers or the relevant Note Guarantor, including
such Person's obligations under the Senior Credit
Agreement. The Notes will rank pari passu in
right of payment with all existing and future
Senior Subordinated Indebtedness of the Issuers,
and will be senior in right of payment to all
existing and future Subordinated Obligations of
the Issuers or the relevant Note Guarantor. The
Notes will also be effectively subordinated to
any Secured Indebtedness of the Issuers or the
relevant Note Guarantor, to the extent of the
value of the assets securing such Indebtedness.
As of September 30, 1998, the Issuers had
approximately $45.7 million in Senior
Indebtedness, all of which was guaranteed by, and
constitutes Senior Indebtedness of, the Note
Guarantors, which in each case is senior in right
of payment to the Notes. As of September 30,
1998, the Issuers and the Note Guarantors had
$100 million in Senior Subordinated Indebtedness.
As of September 30, 1998, none of the Issuers and
the Note Guarantors had incurred any Subordinated
Indebtedness, and, as such, none has any
Indebtedness that ranks subordinate in right of
payment to the Notes. In addition, as of
September 30, 1998 the Issuers had additional
availability of $44.3 million for borrowings
under the Senior Credit Agreement, all of which
would have been Senior Indebtedness and none of
which would have been Senior Subordinated
Indebtedness (other than the indebtedness
represented by the Notes). See "Description of
Notes--Ranking."
RESTRICTIVE COVENANTS....... The Indenture includes certain covenants that,
among other things, will limit: (i) the
incurrence of additional indebtedness by Parent
and its Restricted Subsidiaries (as defined);
(ii) the layering of indebtedness; (iii) the
payment of dividends on, and redemption of,
capital stock of Parent and its Restricted
Subsidiaries and the redemption of certain
subordinated obligations of Parent and its
10
<PAGE>
Restricted Subsidiaries; (iv) investments; (v)
creation of restrictions on distributions from
Restricted Subsidiaries; (vi) sale of assets and
subsidiary stock; (vii) certain transactions with
affiliates; (viii) incurrence of liens and (ix)
mergers and consolidations. See "Description of
Notes--Certain Covenants" and "Description of
Notes--Merger and Consolidation."
ADDITIONAL AMOUNTS..........
Subject to certain exceptions, if Mexican taxes
are deducted or withheld from payments on the
Notes or the Guarantees, the Payor (as defined)
will pay Additional Amounts to the extent
necessary so that, after such deduction or
withholding, the holders of the Notes receive the
amount such holders would have received if such
taxes had not been deducted or withheld. See
"Description of Notes--Additional Amounts" and
"Taxation--Taxation of Interest and Principal."
RISK FACTORS
Prospective investors in the Notes should carefully consider the matters set
forth in this Prospectus under "Risk Factors."
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<PAGE>
SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL AND OPERATING DATA
The following table sets forth summary historical combined financial data
with respect to the Company for the periods ended and as of the dates
indicated. The summary historical combined statement of operations data for the
years ended December 31, 1995, 1996 and 1997 and the historical combined
balance sheet data as of December 31, 1996 and 1997 are derived from the
audited combined financial statements of the Company and the historical
combined statement of operations data for the six months ended June 30, 1997,
four months ended April 30, 1998 and the two months ended June 30, 1998 and the
historical combined balance sheet data as of June 30, 1997 and June 30, 1998
are derived from the unaudited combined financial statements of the Company
included elsewhere in this Prospectus. The summary historical combined balance
sheet data as of December 31, 1995 are derived from unaudited combined
financial statements of the Company that are not included in this Prospectus.
The unaudited financial statements include, in the opinion of management, all
adjustments consisting of normal recurring adjustments necessary to present
fairly the data for such periods. Prior to 1998, accounts of subsidiaries and
operations outside the United States are included in the summary historical and
pro forma combined financial data on the basis of fiscal years generally ending
November 30.
The following table also sets forth certain unaudited summary pro forma
combined financial data of the Company for the periods indicated. The unaudited
summary pro forma combined statement of operations data for the year ended
December 31, 1997 gives effect to the Transactions as if they had occurred as
of January 1, 1997. The unaudited summary pro forma statement of operations
data for the six months ended June 30, 1998 gives effect to the Transactions as
if they had occurred on January 1, 1997. See "The Transactions." The unaudited
summary pro forma combined financial data do not purport to represent what the
Company's results of operations would actually have been had the Transactions
in fact occurred as of such dates or to project the Company's results of
operations for any future period. The unaudited summary pro forma combined
financial data should be read in conjunction with the Unaudited Pro Forma
Combined Statements of Operations and the notes thereto appearing elsewhere in
this Prospectus.
12
<PAGE>
<TABLE>
<CAPTION>
PREDECESSOR
------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------ PRO SIX MONTHS FOUR MONTHS TWO MONTHS
ACTUAL FORMA(A) ENDED ENDED ENDED
1995 1996 1997 1997 JUNE 30, 1997 APRIL 30, 1998 JUNE 30, 1998
-------- -------- -------- -------- ------------- -------------- -------------
(IN MILLIONS, EXCEPT SALES REPRESENTATIVE DATA)
<S> <C> <C> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DA-
TA:
Net sales.................. $ 218.4 $ 224.5 $ 229.5 $ 229.5 $ 110.1 $ 77.3 $ 41.0
Cost of sales.............. 54.3 58.2 59.1 59.1 28.1 20.3 11.8
Gross profit............... 164.1 166.3 170.4 170.4 82.0 57.0 29.2
Selling, general and
administrative expenses (b). 154.0 155.8 149.4 154.4 73.6 51.6 25.6
Income from operations..... 10.1 10.5 21.0 16.0 8.4 5.4 3.6
Interest income (expense), net. 4.3 0.9 0.3 (17.1) 0.1 0.1 (2.7)
Other income (expense),
net....................... 24.5(c) (1.4) (1.0) (1.0) 0.1 1.5 (1.1)
Income (loss) before income
taxes and extraordinary
credit ................... 38.9 10.0 20.3 (2.1) 8.6 7.0 (0.2)
Net income (loss).......... 32.8 10.0 15.5 (1.4) 6.5 4.1 (0.6)
BALANCE SHEET DATA (AT END OF
PERIOD):
Cash and cash equivalents.. $ 7.5 $ 8.7 $ 10.2 $ 11.6 $ 1.9 $ 18.4
Total working capital (d).. 49.4 24.4 31.1 25.6 41.0 34.3
Property, plant and
equipment, net............ 43.7 41.8 43.7 44.0 39.6 56.2
Total assets............... 203.1 164.5 175.2 179.6 141.9 277.3
Total debt................. -- -- 8.5 140.0
Equity..................... 108.7 78.6 77.3 81.0 90.1 78.2
OTHER DATA:
EBITDA (e)................. $ 37.4 $ 15.9 $ 24.3 $ 22.1 $ 9.9 $ 8.3 $ 3.8
Net cash provided by (used
in) operating activities.. 27.5 5.4 26.7 5.2 (8.0) 8.2
Net cash provided by (used
in) investing activities.. (13.9) (4.5) (5.8) (3.4) 2.6 (198.1)
Net cash provided by (used
in) financing activities.. (13.4) 2.4 (19.0) 2.5 (8.8) 208.3
Depreciation and amortization. 2.8 3.3 4.4 7.2 1.4 1.4 1.3
Capital expenditures....... 20.3 10.3 8.9 8.9 3.7 3.2 0.5
Sales representatives...... 216,700 208,500 220,800 220,800 211,400 220,000 235,100
Sales representative
productivity (f).......... $ 1,008 $ 1,056 $ 1,070 $ 1,070 $ 1,049 $ 1,052 $ 1,079
PRO FORMA DATA:
Adjusted EBITDA (g)........ $ 30.3
Ratio of adjusted EBITDA to
cash interest expense (h). 2.0x
Ratio of total debt to
adjusted EBITDA........... 4.5x
Ratio of total debt to
total capitalization...... 0.6x
Ratio of earnings to fixed
charges (i)............... 22.6 5.8 12.9 -- (i) 18.2 18.5 -- (i)
<CAPTION>
PRO FORMA (A)
-------------
SIX MONTHS
ENDED
JUNE 30, 1998
-------------
<S> <C>
STATEMENT OF OPERATIONS DA-
TA:
Net sales.................. $ 118.3
Cost of sales.............. 31.3
Gross profit............... 87.0
Selling, general and
administrative expenses (b). 78.9
Income from operations..... 8.1
Interest income (expense), net. (8.3)
Other income (expense),
net....................... 0.4
Income (loss) before income
taxes and extraordinary
credit ................... 0.2
Net income (loss).......... (0.8)
BALANCE SHEET DATA (AT END OF
PERIOD):
Cash and cash equivalents..
Total working capital (d)..
Property, plant and
equipment, net............
Total assets...............
Total debt.................
Equity.....................
OTHER DATA:
EBITDA (e)................. $ 12.1
Net cash provided by (used
in) operating activities..
Net cash provided by (used
in) investing activities..
Net cash provided by (used
in) financing activities..
Depreciation and amortization. 3.6
Capital expenditures....... 4.3
Sales representatives...... 235,100
Sales representative
productivity (f).......... $ 1,079
PRO FORMA DATA:
Adjusted EBITDA (g)........ $ 16.0
Ratio of adjusted EBITDA to
cash interest expense (h). 2.1x
Ratio of total debt to
adjusted EBITDA........... --
Ratio of total debt to
total capitalization...... --
Ratio of earnings to fixed
charges (i)............... 1.0
</TABLE>
- --------
(a) For a discussion of the transactions reflected in the pro forma
information set forth in the table, see "Unaudited Pro Forma Combined
Financial Statements," "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and "The Transactions."
(b) Selling, general and administrative expenses include the following non-
recurring items: for 1995, net reorganization charges of $9.6; for 1996, a
$5.4 non-cash charge for the write-off of certain computer systems and
related costs, and net reorganization charges of $0.7; and for 1997, net
reorganization charges
13
<PAGE>
of $3.5 that were partially offset by a cash recovery of $2.3 relating to
the $5.4 charge taken in 1996, resulting from the settlement of a legal
action brought by the Company against a computer systems contractor, and a
gain of $0.8 relating to the sale of a facility that had previously been
written-off.
(c) Other income (expense), net for 1995 includes a $25.5 foreign exchange
gain in Jafra S.A. resulting from having had U.S. dollar denominated
intercompany receivables from affiliates at the time of the December 1994
peso devaluation.
(d) Total working capital is defined as current assets less current
liabilities excluding short term debt with third parties.
(e) EBITDA is defined as net income before net interest expense, income tax
expense, depreciation and amortization. EBITDA which was partially offset
by $9.6 of non-recurring charges relating to the reorganization and
restructuring of certain foreign operations. EBITDA for 1996 includes a
non-recurring charge in Jafra S.A. of $5.4 relating to the write-off of
certain computer systems and related costs, and net reorganization charges
of $0.7. EBITDA for 1997 includes $3.5 of cash severance costs relating to
realignment of certain foreign operations, which was partially offset by a
cash gain of $2.3 relating to a recovery under a legal settlement and $0.8
cash gain relating to the sale of a facility that was previously written-
off. EBITDA for the six months ended June 30, 1997 includes $1.2 of cash
severance costs relating to realignment of certain foreign operations,
which was more than offset by a cash gain of $2.1 relating to a recovery
under a legal settlement. The Company believes that EBITDA provides useful
information regarding the Company's ability to service debt but should not
be considered in isolation or as a substitute for the combined statement
of operations or cash flow data prepared in accordance with the generally
accepted accounting principles and included elsewhere in this Prospectus
or as a measure of the Company's operating performance, profitability or
liquidity. While EBITDA is frequently used as a measure of operations and
the ability to meet debt service requirements, it is not necessarily
comparable to other similarly titled captions of other companies due to
differences and methods of calculation.
(f) Sales representative productivity in any calendar year represents (i)
sales for such calendar year divided by (ii) the average of the number of
sales representatives at the commencement and the end of such calendar
year.
(g)Pro forma adjusted EBITDA reflects (i) the elimination of certain non-
recurring items that affected 1997 historical amounts and (ii) certain
changes in the cost structure of the Company that are expected to occur
following the consummation of the Transactions, as set forth below:
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, 1997 JUNE 30, 1998
----------------- ----------------
<S> <C> <C> <C> <C>
Historical EBITDA:
Predecessor........................... $24.3 $8.3
Successor............................. 3.8
Pro forma adjustments................... (2.2)
Non-recurring items:
Reorganization expenses(1)............ 3.5 --
Gain from legal settlement(2)......... (2.3) --
Gain on sale of divested facility(3).. (0.8) --
--------
Total non-recurring items............. 0.4 --
--------- ---------
Cost savings:
Adjustment of existing employee bene-
fit plans(4)......................... 1.4 0.7
Restructuring/rationalization(5)...... 5.3 2.7
Elimination of expatriate benefits(6). 1.1 0.5
--------
Total cost savings(7)................. 7.8 3.9
--------- ---------
Pro forma adjusted EBITDA............. $ 30.3 $ 16.0
========= =========
</TABLE>
- -------
(1) In 1997, the Company incurred approximately $3.5 of cash severance
costs relating to the realignment of certain foreign operations. The
Company believes that such realignment has been completed and that such
severance costs are non-recurring.
14
<PAGE>
(2) In 1997, the Company recorded a gain of approximately $2.3 relating to
a cash recovery under a legal settlement brought by the Company against
a software vendor.
(3) In 1997, the Company recorded a cash gain of approximately $0.8
relating to the sale of a facility that had been previously written-
off.
(4) The Company has adjusted certain U.S. employee benefit plans which were
provided to employees, including defined benefit pension, retirement
savings, retiree medical and health and welfare plans, at an estimated
annual savings of $1.4.
(5) The Company plans to rationalize certain distribution, manufacturing
and administrative functions which the Company believes will reduce
annual expenses by $5.3. In addition, estimated non-recurring charges
of approximately $4.0 corresponding to the
restructuring/rationalization have not been reflected in the Unaudited
Pro Forma Combined Statement of Operations.
(6) The Company plans to convert to local status or replace certain
individuals currently employed on an expatriate basis. The Company
estimates that the annual cost savings compared to the existing
expatriate policy will be approximately $1.1.
(7) The anticipated cost savings included in pro forma adjusted EBITDA are
based on estimates and assumptions made by the Company that are
inherently uncertain, although considered reasonable by the Company,
and are subject to significant business, economic and competitive
uncertainties and contingencies, all of which are difficult to predict
and many of which are beyond the control of the Company. As a result,
there can be no assurance that such savings will be achieved.
(h) Cash interest expense represents interest expense less amortization of
debt issuance costs.
(i) For purposes of determining the ratio of earnings to fixed charges,
earnings are defined as earnings before income taxes and extraordinary
items, plus fixed charges. Fixed charges include interest expense on all
indebtedness, amortization of deferred financing fees, and one-third of
rental expense on operating leases representing that portion of rental
expense deemed to be attributable to interest. On a pro forma basis,
earnings before income taxes and fixed charges were insufficient to cover
fixed charges by $2.1 for the year ended December 31, 1997. For the two
months ended June 30, 1998, earnings before income taxes and fixed charges
were insufficient to cover fixed charges by $0.2. The calculation of pro
forma earnings to fixed charges includes non-cash depreciation and
amortization expense of $7.4 and $3.8 and non-cash amortization expense of
deferred financing costs of $1.6 and $0.8 for the year ended December 31,
1997 and the six months ended June 30, 1998, respectively.
15
<PAGE>
RISK FACTORS
In addition to the other information in this Prospectus, before tendering
their Existing Notes for New Notes, holders of Existing Notes should carefully
consider the following factors, which are generally applicable to the Existing
Notes and the New Notes.
SUBSTANTIAL LEVERAGE; ABILITY TO SERVICE INDEBTEDNESS
As a result of the Transactions, the Company is highly leveraged. As of
September 30, 1998, the Company had approximately $140 million of consolidated
indebtedness, plus additional borrowing capacity under the Senior Credit
Agreement of approximately $50 million. As of September 30, 1998, the Issuers
had approximately $45.7 million in Senior Indebtedness, all of which was
guaranteed by, and constititues Senior Indebtedness of, the Note Guarantors,
which in each case is senior in right of payment to the Notes. As of September
30, 1998, the Issuers and the Note Guarantors had $100 million Senior
Subordinated Indebtedness. As of September 30, 1998, none of the Issuers and
the Note Guarantors had incurred any Subordinated Indebtedness, and, as such,
none has any Indebtedness that ranks subordinate in right of payment to the
Notes. The Senior Credit Agreement and the Indenture permit the Company to
incur or guarantee certain additional indebtedness (subject to the limitations
set forth therein). The Issuers are required to repay the $25 million in term
loans under the Senior Credit Agreement over the six-year period following the
Closing. All outstanding revolving credit borrowings under the Senior Credit
Agreement will become due on the sixth anniversary of Closing. In addition,
because the Issuers' obligations under the Senior Credit Agreement bear
interest at floating rates, an increase in interest rates could adversely
affect the Company's ability to meet its debt service obligations, although
the Company may enter into certain interest rate protection arrangements
following the Closing with respect to a portion of its indebtedness under the
Senior Credit Agreement. See "Unaudited Pro Forma Combined Financial
Statements," "Description of the Senior Credit Agreement" and "Description of
Notes."
The Company's high degree of leverage could have important consequences to
holders of the Notes, including: (i) a substantial portion of the Company's
cash flow from operations must be dedicated to debt service and is not be
available for other purposes; (ii) the Company's ability to obtain additional
debt financing in the future for working capital, capital expenditures or
acquisitions may be limited; (iii) the Company's leveraged position and the
covenants that are contained in the Indenture and the Senior Credit Agreement
could limit the Company's ability to compete, as well as its ability to expand
(including through acquisitions) and to make capital improvements, and (iv)
the Company's ability to refinance the Notes in order to pay the principal of
the Notes at maturity or upon a Change of Control may be adversely affected.
See "Description of the Senior Credit Agreement" and "Description of Notes."
The Company's ability to pay principal and interest on the Notes and to
satisfy its other debt obligations will depend upon its future operating
performance, which will be affected by prevailing economic conditions and
financial, business and other factors, certain of which are beyond its
control. The Company anticipates that its operating cash flow, together with
borrowings under the Senior Credit Agreement, will be sufficient to meet its
operating expenses and to service its debt requirements as they become due. If
the Company is unable to service its indebtedness, it will be forced to take
actions such as reducing or delaying capital expenditures, selling assets,
restructuring or refinancing its indebtedness (which could include the Notes),
or seeking additional equity capital. There is no assurance that any of these
remedies can be effected on satisfactory terms, if at all. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations--
Liquidity and Capital Resources" and "Description of the Senior Credit
Agreement."
SUBORDINATION OF THE NOTES AND THE GUARANTEES
Each Issuer's Obligations under the Notes will be subordinated in right of
payment to all existing and future Senior Indebtedness of such Issuer,
including its obligations under the Senior Credit Agreement. Each Guarantee
will be subordinated in right of payment to all existing and future Senior
Indebtedness of the relevant Note Guarantor, including such Guarantor's
obligations with respect to the Senior Credit Agreement.
16
<PAGE>
The Issuers and the Note Guarantors may not pay principal of, or premium or
interest on, the Notes, make any payment in respect of a Guarantee, make any
deposit pursuant to defeasance provisions, or repurchase, redeem or otherwise
retire the Notes if any Senior Indebtedness is not paid when due or any other
default on Senior Indebtedness occurs and the maturity of such Senior
Indebtedness is accelerated in accordance with its terms unless, in either
case, and until such default has been cured or waived or has ceased to exist,
any such acceleration has been rescinded or such Senior Indebtedness has been
discharged or paid in full. In addition, if a default exists with respect to
certain Senior Indebtedness and certain other conditions are satisfied, the
Issuers and the Note Guarantors may not make any payments on the Notes or on
the Guarantees until the earliest to occur of certain specified events or the
passage of 179 days from the receipt of a notice blocking such payment. In the
event of bankruptcy, liquidation, reorganization or any similar proceedings
against either Issuer or a Note Guarantor, or any default in payment or
acceleration of any debt thereof, the assets of such Issuer or Note Guarantor
will be available to pay obligations under the Notes or the Guarantees, as the
case may be, only after the Senior Indebtedness of such Issuer or Note
Guarantor has been paid in full, and there may not be sufficient assets
remaining to pay amounts due on all or any of Notes. See "Description of
Notes-- Ranking."
SEVERAL (NOT JOINT) OBLIGATIONS OF THE ISSUERS UNDER THE NOTES
Each Note will represent the several obligations of the Issuers. The U.S.
Issuer will be severally liable with respect to the payment of $600 of each
$1,000 principal amount of the Notes, together with interest on such amount,
and Jafra S.A. will be severally liable with respect to the payment of $400 of
each $1,000 principal amount of the Notes, together with interest on such
amount. Accordingly, the holders of the Notes will have a direct claim against
the U.S. Issuer only to the extent of the U.S. Issuer's Obligations and
against Jafra S.A. only to the extent of Jafra S.A.'s Obligations. Each of the
Obligations will be guaranteed by Parent and the other Issuer. However, each
Cross Guarantee is subject to certain limitations, in particular a 30-day
standstill period prior to its enforcement. See "Description of Notes--Note
Guarantees."
HOLDING COMPANY STRUCTURE MAKES ISSUERS AND PARENT DEPENDENT ON SUBSIDIARIES
The U.S. Issuer conducts the non-U.S. part of its operations, and Jafra S.A.
and Parent conduct all of their operations, through various direct and
indirect subsidiaries. The Issuers and Parent are therefore dependent on
dividends or other distributions of funds from their respective subsidiaries
to meet their respective obligations, including obligations under the Senior
Credit Agreement, the Notes and the Guarantees. Such subsidiaries are separate
and distinct legal entities and, except for the subsidiaries of Jafra S.A. and
subsequently acquired or organized domestic subsidiaries of the U.S. Issuer
(which have guaranteed or will in the future guarantee the obligations of
Jafra S.A. or the U.S. Issuer, as the case may be), have no obligations under
the Notes or the Guarantees. The rights of the U.S. Issuer, Parent and their
respective creditors, including holders of the Notes, to participate in the
distribution of the assets of any subsidiary (other than the Note Guarantors)
upon such subsidiary's liquidation or reorganization will be subject to the
prior claims of such subsidiary's creditors, including trade creditors, except
to the extent that the U.S. Issuer or Parent itself may be a creditor with
enforceable claims against such subsidiary.
UNSECURED STATUS OF NOTES; ENCUMBRANCES TO SECURE SENIOR CREDIT AGREEMENT
In addition to being subordinated to all existing and future Senior
Indebtedness of the Issuers and of the relevant Note Guarantors, the Notes and
the Guarantees will not be secured by any of the Issuers' or the Guarantors'
assets. The Issuers' obligations under the Senior Credit Agreement and the
Guarantors' obligations under the related guarantees are secured as fully as
is permitted by applicable law (with certain exceptions) by substantially all
of the assets of Parent, the U.S. Issuer, Jafra S.A., each existing and
subsequently acquired or organized subsidiary of Jafra S.A., and each
subsequently acquired or organized U.S. subsidiary of the U.S. Issuer,
including, but not limited to, (a) a pledge of all the capital stock of the
Issuers, certain intermediate holding companies and each existing and each
subsequently acquired or organized direct subsidiary of each of
17
<PAGE>
the Issuers (which pledge, in the case of any foreign subsidiary of the U.S.
Issuer, shall be limited to 65% of the capital stock of such foreign
subsidiary) and (b) security interests in, and mortgages on, substantially all
tangible and intangible assets of the Issuers and each existing and each
subsequently acquired or organized subsidiary of Jafra S.A. and each
subsequently acquired or organized domestic subsidiary of the U.S. Issuer. If
an Issuer or a Note Guarantor becomes insolvent or is liquidated, or if
payment of the indebtedness under the Senior Credit Agreement is accelerated,
the lenders thereof will be entitled to exercise the remedies available to a
secured lender under applicable law and the instruments and agreements
governing such indebtedness. Accordingly, such lenders will have a prior claim
over claims of the holders of the Notes with respect to the assets securing
such indebtedness. In any such event, because the Notes and the Guarantees
will not be secured by such assets, it is possible that no assets would remain
from which claims of holders of the Notes could be satisfied or that, if any
such assets remained, such assets would be insufficient to satisfy such claims
fully. See "Description of the Senior Credit Agreement" and "Description of
Notes."
RESTRICTIVE FINANCING COVENANTS
The Senior Credit Agreement contains a number of significant covenants that,
among other things, restrict the ability of the Company to incur additional
indebtedness, pay dividends and other distributions, prepay other indebtedness
(including a specific restriction on prepayment of the Notes), create liens,
make capital expenditures, dispose of assets, make certain investments or
acquisitions, engage in certain transactions with affiliates and otherwise
restrict corporate activities. In addition, under the Senior Credit Agreement
the Company is required to satisfy specified financial covenants, including a
minimum EBITDA to cash interest expense coverage ratio and a maximum debt to
EBITDA ratio.
The Company's ability to comply with the covenants and restrictions
contained in the Senior Credit Agreement may be affected by events beyond its
control, including prevailing economic, financial and industry conditions, and
there can be no assurance that the Company will be able to comply with such
covenants or restrictions in the future. The breach of any such covenants and
restrictions as well as certain other events (including the occurrence of a
"Change in Control," as defined in the Senior Credit Agreement), could result
in an event of default under the Senior Credit Agreement which would permit
the lenders thereunder to declare all amounts outstanding thereunder to be
immediately due and payable, together with accrued and unpaid interest, and to
terminate their commitments to make further extensions of credit under the
Senior Credit Agreement. In addition, if the Issuers were unable to repay
their indebtedness to the lenders under the Senior Credit Agreement, such
lenders could proceed against the collateral securing such indebtedness, and
the Company could be prohibited from making any payments on the Notes. See
"Description of the Senior Credit Agreement." In addition, the Indenture
contains a number of restrictive covenants relating to the Company. See
"Description of Notes--Certain Covenants."
RISK OF INSUFFICIENT FUNDS UPON CHANGE OF CONTROL
The Indenture provides that upon a Change of Control, subject to certain
exceptions, each holder of the Notes may require the Company to repurchase all
or any part of such holder's Notes at a price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest thereon, if any, to the date
of repurchase. The Senior Credit Agreement provides that in the event of a
Change of Control, the Issuers may not repurchase any Notes unless and until
such time as all amounts outstanding under the Senior Credit Agreement are
repaid in full. There can be no assurance that, in the event of a Change of
Control, the Issuers will have available sufficient funds to repay all amounts
outstanding under the Senior Credit Agreement or to repurchase the Notes. See
"Description of the Senior Credit Agreement" and "Description of Notes--Change
of Control."
HIGHLY COMPETITIVE MARKET
The direct selling cosmetic and personal care products business is highly
competitive. The Company competes with other direct sellers and other channels
of distribution for such products based on numerous factors, including the
quality and strength of the Company's marketing efforts, its geographic
penetration, its sales
18
<PAGE>
representative incentive system, brand recognition, product quality,
performance and price. The Company's sales representative incentive system and
party plan sales method influence consumers' choices among competing products
and brands and competing direct sellers. Promotion, merchandising and
packaging, and the timing and frequency of new product introductions and line
extensions, also influence buying decisions, and the structure and quality of
the sales representative sales force affect product reception. A number of the
Company's competitors, including Avon and Mary Kay, are significantly larger
and have substantially greater resources and less leverage than the Company,
which may provide them greater flexibility to respond to changing business and
economic conditions than the Company. An increase in the amount of competition
faced by the Company, or the inability of the Company to compete successfully,
could have a material adverse effect on the Company's business, financial
condition and results of operations. See "Business--Competition."
DEPENDENCE ON CONSUMER SPENDING
The sale of cosmetics and other personal care products correlates strongly
to the level of consumer spending generally, and thus is significantly
affected by the general state of the economy and the ability and willingness
of consumers to spend on discretionary items. Reduced consumer confidence and
spending generally may result in reduced demand for the Company's products and
limitations on the ability of the Company to maintain or increase prices. A
decline in economic conditions or general consumer spending in any of the
Company's major markets could have a material adverse effect on the Company's
business, financial condition and results of operations.
RISKS INHERENT IN INTERNATIONAL OPERATIONS
General Risks
The Company's ability to conduct and expand its business outside the United
States and the amount of its revenues derived from foreign markets are subject
to the risks inherent in international operations. The Company's international
operations may be adversely affected by import duties or other legal
restrictions on imports, currency exchange control regulations, transfer
pricing regulations, the possibility of hyperinflationary conditions and
potentially adverse tax consequences, among other things. In addition, the
governments of many developing nations have exercised and continue to exercise
significant influence over many aspects of their domestic economies. Given the
balance of payment deficits and shortages in foreign exchange reserves that
many such economies, including the Mexican economy, have suffered in recent
years, there can be no assurance that the governments of nations in which the
Company operates, or intends to expand, will not take actions that materially
adversely affect the Company and its business.
At present, foreign investment in Mexico is not restricted except in respect
of certain industries, such as petroleum, air transportation and banking. The
Jafra Business is not subject to such foreign investment controls. There can
be no assurance that investment controls will not be instituted in the future.
Similarly, at present, there are no foreign currency exchange controls in
place in Mexico. Except for the period from September to December 1982, during
a liquidity crisis, Banco de Mexico has consistently made foreign currency
available to Mexican private sector entities (such as Jafra S.A.) to meet
their foreign currency obligations (such as the Notes). Nevertheless, in the
event of renewed shortages of foreign currency, there can be no assurance that
foreign currency would continue to be available to private sector companies or
that foreign currency needed by Jafra S.A. to service foreign currency
obligations could be purchased in the open market without substantial
additional cost.
As a result of recent elections, for the first time in seven decades, the
Partido Revolucionario Institucional (PRI) does not hold a majority of the
seats in the Mexican Chamber of Deputies or the office of mayor of Mexico
City. The Company cannot predict the impact these elections will have on
Mexican economic, regulatory and social policy or the consequences thereof on
the business, financial condition, results of operations and prospects of the
Company. The Mexican economy, like other developing economies, has been
adversely affected by turmoil in foreign economies and international financial
markets. In addition, declining petroleum prices have
19
<PAGE>
increased pressure upon the Mexican economy and resulted in a reduction of
public expenditures by the Mexican government. Despite such adverse
developments, the Company has not experienced a material adverse effect on its
business, financial condition and results of operations in Mexico or its other
foreign markets for the first nine months of 1998. There can be no assurance,
however, that future economic, political or diplomatic developments in or
affecting the Company's overseas markets, over which the Company has no
control, will not impair the Company's business, financial condition and
results of operations or the ability of the Issuers or the Guarantors to meet
their respective obligations under the Notes and the Guarantees.
The Company believes that it operates in compliance with all applicable
customs, currency exchange control and transfer pricing laws. However, there
can be no assurance that the Company will continue to be found to be operating
in compliance with such laws or that such laws will not be modified, the
result of which may be to require changes in the Company's operating
procedures. Also, the Company may experience difficulty entering new foreign
markets due to regulatory barriers, the necessity of adapting to new
regulatory systems and different cultural bases and political systems of such
markets. As the Company continues to expand its non-U.S. operations, these and
other risks associated with such operations are likely to increase.
Exchange Rate Risks
Approximately 69% of the Company's revenues in 1997 were generated in
currencies other than the U.S. dollar. Substantially all of Jafra S.A.'s
consolidated revenues, representing approximately 43% of the Company's
revenues in 1997, are denominated in Mexican pesos. As such, the Company's
results of operations are subject to fluctuations in foreign exchange rates.
Substantially all of the Company's indebtedness (including substantially
all the indebtedness of Jafra S.A.) is denominated in U.S. dollars. As a
result, declines relative to the U.S. dollar in the value of the currencies in
which the Company's revenues are generated (including the Mexican peso) may
materially adversely affect the Company's business, financial condition and
results of operations and the ability of the Issuers and the Note Guarantors
to meet their respective obligations under the Notes and the Guarantees.
The value of the Mexican peso in particular has been subject to significant
fluctuations with respect to the U.S. dollar in the past and may be subject to
significant fluctuations in the future. The value of the Mexican peso against
the U.S. dollar declined by 60.8% from December 31, 1993 to December 31, 1994;
by 54.8% from January 1, 1995 to December 31, 1995; by 1.8% from January 1,
1996 to December 31, 1996; by 2.4% from January 1, 1997 to December 31, 1997;
and by approximately 24.5% from January 1, 1998 to October 23, 1998. The
decline in the value of the Mexican peso in 1994 and 1995, and the associated
economic weakness, had a material adverse effect on the Company's business,
financial condition and results of operations. For example, in 1995, changes
in exchange rates (together with local liquidity issues and inflation)
resulted in a decrease of U.S.$59.0 million in sales in Mexico. Although the
Company anticipates that, as its worldwide revenues increase, Jafra S.A.'s
revenues will comprise a smaller percentage of the Company's total revenue,
there can be no assurance that this will be the case. Any future devaluation
against the U.S. dollar of the Mexican peso or any other currency in which the
Company earns revenue could materially adversely affect the ability of the
Company to service its U.S. dollar denominated liabilities, including the
Notes.
Historically, Jafra S.A. has been able to raise its prices in line with the
local inflation, thereby helping to mitigate the effect of devaluations of the
Mexican peso. For example, from 1994 to 1997, Jafra S.A. increased its prices
148%, compared to inflation of 119% and a depreciation of the Mexican peso by
150% over this period. However, there can be no assurance that Jafra S.A. will
be able to maintain this pricing policy in the future. The Company may manage
the exchange rate exposure presented by the Notes by entering into certain
hedging transactions, although there can be no assurance that the Company will
be able to do so at an acceptable cost or that future exchange rate
fluctuations will not have a material adverse effect on the ability of the
Company to pay when due the principal and interest on the Notes. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations."
On January 1, 1999, eleven of the fifteen member countries of the European
Union are scheduled to establish fixed conversion rates between their existing
sovereign currencies and the euro. The participating
20
<PAGE>
countries have agreed to adopt the euro as their common legal currency on that
day. The euro will then trade on currency exchanges and be available for non-
cash transactions during the transition period between January 1, 1999 and
January 1, 2002. During this transition period, the existing currencies are
scheduled to remain legal tender in the participating countries as
denominations of the euro and public and private parties may pay for goods and
services using either the euro or the participating countries' existing
currencies.
During the transition period, the Company will continue to utilize the
respective country's existing currency as the functional currency. Use of the
euro by the Company or its sales representatives is not expected to be
significant and will be converted and recorded in the Company's accounting
records in the existing functional currency.
The Company intends to use the euro as its functional currency as soon as
practicable. The Company does not expect the introduction of the euro to
materially affect its business, financial condition or results of operations.
GOVERNMENT REGULATION
The Company is subject to or affected by governmental regulations
concerning, among other things, (i) product formulation, labeling and
packaging, (ii) product claims and advertising, whether made by the Company or
its sales representatives, (iii) fair trade and distributor practices and (iv)
environmental, health and safety matters. In addition, new regulations could
be adopted or any of the existing regulations could be changed at any time in
a manner that could have a material adverse effect on the Company's business
and results of operations. Present or future health and safety or food and
drug regulations could delay or prevent the introduction of new products into
a given country or marketplace or suspend or prohibit the sale of existing
products in such country or marketplace. The Company believes that it is in
compliance in all material respects with such laws and regulations now in
effect.
In particular, most countries have laws intended to prevent deceptive
schemes, often referred to as "pyramid" or "chain sales" schemes, that promise
quick rewards for little or no effort, require high entry costs, use high
pressure recruiting methods or do not involve legitimate products. The Company
believes that its method of distribution is in compliance in all material
respects with the laws and regulations relating to direct selling activities
of all of the countries in which the Company currently operates. However,
there can be no assurance that the Company will be allowed to conduct business
in new markets or continue to conduct business in each of its existing markets
on the basis of its current practices.
Jafra's sales representatives are self-employed and are not employees of the
Company. Periodically, the question of the legal status of the Company's sales
representatives has arisen, usually in regard to possible coverage under
social benefit laws that would require Jafra (and in most instances its sales
representatives) to make regular contributions to social benefit funds.
Although the Company has generally been able to address these questions in a
satisfactory manner, the matter has not been fully resolved in all countries.
If there should be a final determination adverse to the Company in a
particular country, the cost for future, and possibly past, contributions
could be so substantial in relation to the Company's operations in that
country that the Company could be forced to discontinue operations in that
country and the business, financial condition and results of operations of the
Company could be materially adversely affected.
DEPENDENCE ON NEW MANAGEMENT
In connection with the Acquisition, several members of the Company's senior
management team have returned to Gillette and others will remain with the
Company for a transition period extending in certain cases up to December 31,
1998. See "The Transactions." Certain departing employees have been replaced
by the new management team. See "Business--Marketing--Strategy" and
"Management." The success of the Company depends in large part on the
Company's new management and, to a lesser extent, on its ability to attract
and retain other highly qualified management personnel. There can be no
assurance that the Company will be
21
<PAGE>
successful in hiring or retaining such personnel or that such new management
will be successful in implementing the Company's strategy.
RISK OF INABILITY TO SUCCESSFULLY IMPLEMENT GROWTH STRATEGY
The Company's strategy is to (i) identify additional strategic hires to
round out its new management team with significant direct selling experience,
(ii) grow its sales representative base in existing markets, (iii) increase
sales representative productivity, (iv) develop new markets and (v) improve
operating efficiency. The Company's ability to implement its strategy
successfully will be dependent on business, financial and other factors that
may be beyond the Company's control, including the prevailing economic
conditions and changes in consumer preferences and in the competitive
environment. There can be no assurance that the Company will be successful in
the implementation of its strategy.
The Company's ability to anticipate changes in market and industry trends
and to successfully develop and introduce new and enhanced products on a
timely basis will be a critical factor in its ability to grow and to remain
competitive. There can be no assurance that new products and product
enhancements will be completed on a timely basis or will enjoy market
acceptance following their introduction. In addition, the anticipated
development schedules for new or improved products are inherently difficult to
predict and are subject to delay or change as a result of shifting priorities
in response to customers' requirements and competitors' new product
introductions.
YEAR 2000 ISSUE
Prior to the Acquisition, the Company established a year 2000 compliance
methodology and schedule based on the Gillette model. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations--Year
2000 Issue." The Company is currently in the process of repairing, upgrading
or replacing all hardware, software and equipment that has been identified as
non-compliant at a cost estimated to be $1.5 million through 1999. Part of
this process involves confirming with suppliers that their systems are or will
be year 2000 compliant. The Company has contacted but has not yet received
responses from all of its major suppliers of raw materials and finished
products with respect to their year 2000 compliance status. Based on the
replies received by the Company as of October 26, 1998, the Company does not
believe that the inability of any of the suppliers that have not yet responded
or have responded unfavorably to the Company's request for information, to
continue to supply the Company would have a material adverse effect on the
Company's business, financial condition or results of operations. The Company
intends to seek and identify alternate sources of supply for the affected raw
materials and finished products in the event it has not received assurance by
March 31, 1999 from these companies that they will be able to supply the
Company without material disruption into the year 2000. The Company currently
believes there are alternative sources for all such materials.
In the event the Company does not complete all phases of its year 2000
compliance program by December 31, 1999, the Company's most likely worst case
scenario would be that it would have to consider outsourcing its customer
service and order processing functions. No assurance can be given that the
Company will be able to outsource these functions or that the Company will not
incur significant additional expense in doing so. In the event that the
Company could not outsource these functions, the Company would be unable to
process orders in a timely manner or respond to customer inquiries. This could
lead to a loss of revenue and customer satisfaction, which could have a
material adverse effect on the Company's results of operations, liquidity, and
financial condition. The Company will make a determination no later than the
end of March 1999 as to whether it needs to investigate the possibility of
outsoucring these functions.
CONTROL BY CD&R FUND V
CD&R Fund V owns approximately 92.73% of the outstanding shares of Parent.
As a result of its stock ownership, CD&R Fund V has the ability to control the
Company, including the power to elect the directors of the Company, appoint
new management, and approve any action requiring approval by the stockholders
of the Company (such as adopting amendments to the organizational documents of
the Company and approving any merger or sale of all or substantially all the
assets of the Company). In addition, the employment agreements of Ronald B.
Clark, Parent's CEO, and Gonzalo R. Rubio, Parent's COO, provide that each
will be a member of the Board of Directors during the term of his employment.
The stockholders, or in some countries the directors so elected, have the
authority to effect decisions affecting the capital structure of the Company,
including the
22
<PAGE>
issuance of preferred stock and the declaration of dividends. There can be no
assurance that the interests of CD&R Fund V and Messrs. Clark and Rubio will
not conflict with the interests of holders of the Notes.
SERVICE OF PROCESS AND ENFORCEMENT OF CIVIL LIABILITIES
Jafra S.A. and it subsidiaries are limited liability corporations with
variable capital (sociedades anonimas de capital variable) organized under the
laws of the United Mexican States. Parent is a Luxembourg company. Certain of
the officers and directors of the foregoing may be residents of various
jurisdictions outside the United States. All or a substantial portion of the
assets of such persons may be located outside the United States. As a result,
it may be difficult for investors to effect service of process within the
United States upon such persons or to enforce in United States courts
judgments obtained against such persons in United States courts and predicated
upon the civil liability provisions of the United States federal securities
laws.
In addition, Jafra S.A. and its subsidiaries have been advised by Ritch,
Heather Y Mueller, S.C., their Mexican counsel, that there is doubt as to (i)
the enforceability, in original actions in Mexican courts, of liabilities
predicated solely upon the United States Federal securities laws and (ii) the
enforceability in Mexican courts of judgments of United States courts obtained
in actions predicated upon the civil liability provisions of the United States
Federal securities Laws. Parent has also been advised by Bonn & Schmitt, its
Luxembourg counsel, that there is doubt as to (i) whether a Luxembourg court
has jurisdiction to entertain original cases or actions predicated solely upon
the United States federal securities laws, (ii) the enforceability, in
original actions in Luxembourg courts, of liabilities predicated solely upon
the United States federal securities laws and (iii) the enforceability in
Luxembourg courts of judgments of United States courts obtained in actions
predicated upon the civil liability provisions of the United States federal
securities laws.
JUDGMENTS IN FOREIGN CURRENCIES
Under the Monetary Law of Mexico, an obligation in a currency other than
Mexican currency, which is payable in Mexico, may be satisfied in Mexican
currency at the rate of exchange in effect on the date payment occurs. Such
rate is currently determined by Banco de Mexico every business banking day in
Mexico and published the following business banking day in the Official
Gazette. Accordingly, in the event that proceedings are brought in Mexico
seeking to enforce in Mexico Jafra S.A.'s Obligations under the Notes or the
Jafra S.A. Guarantees, neither Jafra S.A. nor its subsidiaries obligated under
the Guarantees would be required to discharge such obligations in a currency
other than the Mexican peso and no separate cause of action exists in Mexico
for compensation for any shortfall. Upon the declaration of bankruptcy of
Jafra S.A. or any subsidiary thereof, Jafra S.A.'s Obligations under the Notes
or a Jafra S.A. subsidiary's obligations in respect of its Guarantee (i) would
be converted into Mexican pesos at the exchange rate prevailing at the time of
such declaration and payment would occur at the time claims of the creditors
of Jafra S.A. or such subsidiary are satisfied, (ii) would be dependent upon
the outcome of the bankruptcy proceedings and (iii) would not be adjusted to
take into account depreciation of the Mexican peso against the U.S. dollar
occurring after such declaration of bankruptcy.
FRAUDULENT TRANSFER CONSIDERATIONS
The incurrence of indebtedness by the Issuers and the Note Guarantors, such
as the Notes and the Guarantees, may be subject to review under federal, state
or foreign fraudulent transfer laws in the event either Issuer or any such
Note Guarantor is the subject of a bankruptcy filing or lawsuit commenced by
or on behalf of its unpaid creditors of such Issuer or Note Guarantor. Under
such laws, if a court in a lawsuit by a creditor or a representative of
creditors of such Issuer or Note Guarantor, such as a trustee in bankruptcy,
were to find that, at the time such Issuer or Note Guarantor incurred
indebtedness, including indebtedness under the Notes or the Guarantees, such
Issuer or Note Guarantor (i) was insolvent or rendered insolvent thereby, (ii)
was engaged in a business or transaction for which its remaining assets
constituted an unreasonably small amount of capital, (iii) intended to incur,
or believed that it would incur, debts beyond its ability to pay as they
matured, or (iv) intended to hinder, delay or defraud current or future
creditors and, in the case of clauses (i), (ii) and (iii), that such Issuer or
Note Guarantor did not receive reasonably equivalent value or fair
consideration for incurring such
23
<PAGE>
indebtedness, such court could avoid or subordinate the amounts owing under
the Notes or the Guarantees to presently existing and future indebtedness of
such Issuer or Note Guarantor and take other actions detrimental to the
holders of the Notes.
If a court were to find that an Issuer or Note Guarantor came within any of
clauses (i) through (iv) above, such Issuer or Note Guarantor, or its
creditors or the trustee in bankruptcy, could seek to avoid the grant of
security interests to the lenders under the Senior Credit Agreement. This
would result in an event of default with respect to indebtedness incurred
under such agreement which, under the terms of such indebtedness (subject to
applicable law), would allow the lenders to terminate their commitments
thereunder and to accelerate repayment of such indebtedness.
The measure of insolvency for purposes of the foregoing will vary depending
upon the law of the jurisdiction which is being applied. Generally, however, a
company would be considered insolvent for purposes of the foregoing if, at the
time it incurred the indebtedness, (i) the sum of such company's debts
including contingent liabilities is greater than all such company's property
at a fair valuation, (ii) the present fair saleable value of such company's
assets is less than the amount that will be required to pay its probable
liability on its existing debts and liabilities (including contingent
liabilities) as they become absolute and matured or (iii) the company incurred
obligations beyond its ability to pay as such obligations become due. There
can be no assurance as to what standards a court would use to determine
whether an Issuer or a Note Guarantor was solvent at the relevant time, or
whether, whatever standard were to be used, the Notes or Guarantees would not
be avoided or further subordinated on grounds other than those set forth
above. In rendering their opinions in connection with the initial borrowings,
counsel for the Issuers and the Note Guarantors and counsel for the Initial
Purchasers will not express any opinion as to the applicability of federal,
state or foreign fraudulent transfer and conveyance laws. Moreover, any
solvency analysis conducted in connection with the Acquisition would not be
binding on a court and there can be no assurance that a court would not
determine that an Issuer or a Note Guarantor was insolvent at the time of or
after giving effect to the Acquisition.
The Issuers and the Note Guarantors believe that at the time the
indebtedness constituting the Notes and the Guarantees is initially incurred
by the Issuers and the Note Guarantors, the Issuers and the Note Guarantors
(i) will be (a) neither insolvent nor rendered insolvent thereby, (b) in
possession of sufficient capital to run their respective businesses
effectively and (c) incurring debts and obligations within their respective
abilities to pay as the same mature or become due and (ii) will have
sufficient assets to satisfy any probable money judgment against them in any
pending action. In reaching the foregoing conclusions, the Issuer and the Note
Guarantors have relied upon their respective analyses of internal cash flow
projections and estimated values of their respective assets and liabilities.
There can be no assurance, however, that a court passing on such questions
would reach the same conclusions.
ABSENCE OF PUBLIC MARKET; RESTRICTIONS ON RESALES
The New Notes are new securities for which there is presently no established
market and for which no public market may develop. The Existing Notes have not
been registered under the Securities Act and are subject to restrictions on
transferability and resale. Although the Initial Purchasers have informed the
Company that they intend to make a market in the Existing Notes, and if
issued, the New Notes, the Initial Purchasers are not obligated to do so and
any such market-making may be discontinued at any time without notice, at the
sole discretion of the Initial Purchasers. In addition, such market-making
activity may be limited during the pendency of the Exchange Offer or the
effectiveness of a Shelf Registration Statement (as defined) in lieu thereof.
Accordingly, there can be no assurance as to the development or liquidity of
any market for the Existing Notes or, if issued, the New Notes. If an active
market for the Existing Notes or, if issued, the New Notes, fails to develop
or be sustained, the trading price of the Existing Notes or New Notes could be
materially adversely affected. The Existing Notes are eligible for trading
through the PORTAL market. The Company does not intend to apply for listing of
the New Notes on any securities exchange or for quotation of the New Notes
through the National Association of Securities Dealers Automated Quotation
System. See "Plan of Distribution."
24
<PAGE>
CONSEQUENCES OF FAILURE TO EXCHANGE AND REQUIREMENTS FOR TRANSFER OF NEW NOTES
To the extent that Existing Notes are tendered and accepted in the Exchange
Offer, the trading market for the remaining untendered or tendered but not
accepted Existing Notes could be adversely affected. Because the Company
anticipates that most holders of the Existing Notes will elect to exchange
such Existing Notes for New Notes due to the absence of restrictions on the
resale of New Notes under the Securities Act, the Company anticipates that the
liquidity of the market for any Existing Notes remaining after the
consummation of the Exchange Offer may be substantially limited.
The liquidity of, and trading market for, the Notes also may be adversely
affected by general declines in the market or by declines in the market for
similar securities. Such declines may adversely affect such liquidity and
trading markets independent of the financial performance of, and prospects
for, the Company.
Holders of Existing Notes who do not exchange their Existing Notes for New
Notes pursuant to the Exchange Offer will continue to be subject to the
restrictions on transfer of such Existing Notes as set forth in the legend
thereon as a consequence of the issuance of the Existing Notes pursuant to
exemptions from, or in transactions not subject to, the registration
requirements of the Securities Act and applicable state securities laws. In
general, the Existing Notes may not be offered or sold, unless registered
under the Securities Act, except pursuant to an exemption from, or in a
transaction not subject to, the Securities Act and applicable state securities
laws. The Company does not currently anticipate that it will register Existing
Notes under the Securities Act. Based on interpretations by the staff of the
Commission, as set forth in no-action letters issued to third parties, the
Company believes that New Notes issued pursuant to the Exchange Offer in
exchange for Existing Notes may be offered for resale, resold or otherwise
transferred by holders thereof (other than any such holder which is an
"affiliate" of the Company within the meaning of Rule 405 under the Securities
Act) without compliance with the registration and prospectus delivery
provisions of the Securities Act, provided that such New Notes are acquired in
the ordinary course of such holders' business and such holders have no
arrangement with any person to participate in the distributions of such New
Notes. However, the Commission has not considered the Exchange Offer in the
context of a no-action letter and there can be no assurance that the staff of
the Commission would make a similar determination with respect to the Exchange
Offer as in such other circumstances. Each holder, other than a broker-dealer,
must acknowledge that it is not engaged in, and does not intend to engage in,
a distribution of New Notes and has no arrangement or understanding to
participate in a distribution of New Notes. If any holder is an affiliate of
the Company, is engaged in or intends to engage in or has any arrangement or
understanding with respect to the distribution of the New Notes to be acquired
pursuant to the Exchange Offer, such holder (i) could not rely on the
applicable interpretations of the staff of the Commission and (ii) must comply
with the registration and prospectus delivery requirements of the Securities
Act in connection with any resale transaction. Each broker-dealer that
receives New Notes for its own account pursuant to the Exchange Offer must
acknowledge that it will deliver a prospectus in connection with any resale of
such New Notes. The Letter of Transmittal states that by so acknowledging and
by delivering a prospectus, a broker-dealer will not be deemed to admit that
it is an "underwriter" within the meaning of the Securities Act. This
Prospectus, as it may be amended or supplemented from time to time, may be
used by a broker-dealer in connection with resales of New Notes received in
exchange for Existing Notes where such Existing Notes were acquired by such
broker-dealer as a result of market-making activities or other trading
activities. For a period of 90 days after the Expiration Date, the Company
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution." However, to comply with the
securities laws of certain jurisdictions, if applicable, the New Notes may not
be offered or sold unless they have been registered or qualified for sale in
such jurisdictions or an exemption from registration or qualification is
available and is complied with. See "The Exchange Offer--Consequences of
Exchanging Old Notes."
25
<PAGE>
USE OF PROCEEDS
There will be no cash proceeds to the Company from the issuance of the New
Notes pursuant to the Exchange Offer. The proceeds of the Offering, together
with other sources of financing, were used to fund the purchase price for the
Acquisition and to pay transaction-related fees and expenses.
26
<PAGE>
CAPITALIZATION
The following table sets forth the capitalization of the Company as of June
30, 1998. This table should be read in conjunction with "Management's
Discussion and Analysis of Financial Conditions and Results of Operations" and
the combined financial statements of the Company and related notes thereto,
all included elsewhere in this Prospectus.
<TABLE>
<CAPTION>
AS OF
JUNE 30, 1998
-------------
(IN MILLIONS)
<S> <C>
Long term debt:
Revolving Credit Facility....................................... $ 15.0
Term Loan Facility.............................................. 25.0
11 3/4% Senior Subordinated Notes Due 2008...................... 100.0
------
Total long term debt.......................................... 140.0
Total common stockholders' equity................................. 78.2(a)
------
Total capitalization.......................................... $218.2
======
</TABLE>
- --------
(a) $78.9 million of equity was contributed to Parent in cash on or prior to
the Closing. The decrease of $0.7 million is due to the changes in
stockholders' equity attributable to operations for the two months ending
June 30, 1998. On September 30, 1998, an additional $4.04 million of
equity was contributed to Parent in cash by certain members of management,
certain directors and other persons in a transaction exempt from the
registration requirements of the Securities Act. See "Management" and
"Ownership of Capital Stock."
27
<PAGE>
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
The following Unaudited Pro Forma Combined Statements of Operations of the
Company are based on the historical financial statements of the Company
included elsewhere in this Prospectus, adjusted to give effect to the
following: (i) the Acquisition of the worldwide Jafra Business from Gillette
for $200 million in cash by Parent and its subsidiaries; (ii) the receipt of
$100 million in proceeds from the offering of the Notes and the initial
borrowing of $25 million under the Term Loan Facility and $15 million under
the Revolving Credit Facility; and (iii) the payment of approximately $20
million in fees and expenses related to the Acquisition and the Financings.
See "The Transactions."
The Unaudited Pro Forma Combined Statement of Operations for the year ended
December 31, 1997 and the Unaudited Combined Pro Forma Statement of Operations
for the six months ended June 30, 1998, give effect to the Transactions as if
the Transactions had occurred as of January 1, 1997. The pro forma adjustments
are based upon available information and certain assumptions that the Company
believes are reasonable. The Unaudited Pro Forma Statements of Operations do
not purport to represent what the Company's results of operations would
actually have been had the Transactions in fact occurred as of such dates or
to project the Company's results of operations for any future period. The
Unaudited Pro Forma Statements of Operations should be read in conjunction
with the historical combined financial statements of the Company and the notes
thereto and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" appearing elsewhere in this Prospectus.
The Acquisition was accounted for as a purchase. Under purchase accounting,
the total purchase cost and fair value of liabilities assumed will be
allocated to the assets of the Company based upon their respective fair values
as of the Closing based on valuations and other studies that have not yet been
finalized. A preliminary allocation of the purchase cost has been made to
major categories of assets and liabilities based on Company estimates. The
actual allocation of purchase cost and the resulting effect on income from
operations may differ significantly from the pro forma amounts included
herein.
Pursuant to the Acquisition Agreement, the purchase price paid by the Parent
for the Jafra Business is to be adjusted by the difference, if any, between
the adjusted net book value (as defined) of the Jafra Business as of the
closing date, and the adjusted net book value as of September 30, 1997. The
purchase price adjustment, if any, has not been resolved and accordingly no
adjustment has been made to the total purchase cost in the Unaudited Pro Forma
Combined Statement of Operations.
28
<PAGE>
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
-------------------------------------
PRO FORMA
HISTORICAL ADJUSTMENTS PRO FORMA(A)
---------- ----------- ------------
(IN MILLIONS)
<S> <C> <C> <C>
Net sales................................. $229.5 $229.5
Cost of sales............................. 59.1 (b) 59.1
------ ------
Gross profit.............................. 170.4 170.4
Selling, general and administrative
expenses................................. 149.4 154.4
Depreciation and amortization........... $ 2.8 (c)
CD&R advisory fee....................... 0.5 (d)
Executive compensation restructuring.... (0.9)(e)
Insurance coverage...................... 0.3 (f)
Compensation expense.................... 2.3 (g)
------ ------ ------
Income from operations.................... 21.0 (5.0) 16.0
------ ------ ------
Interest income (expense), net............ 0.3 (17.4)(h) (17.1)
Exchange gain............................. 0.3 0.3
Other expense, net........................ (1.3) (1.3)
------ ------ ------
Income (loss) before income taxes......... 20.3 (22.4) (2.1)
Income tax expense (benefit).............. 4.8 (5.5)(i) (0.7)
------ ------ ------
Net income (loss)(j)(k)................... $ 15.5 $(16.9) $ (1.4)
====== ====== ======
Other data:
Ratio of earnings to fixed charges(l)..... 12.9 --
====== ======
</TABLE>
29
<PAGE>
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PRO FORMA
PREDECESSOR SUCCESSOR SIX MONTHS
FOUR MONTHS TWO MONTHS PRO ENDED
ENDED ENDED FORMA JUNE
APRIL 30, 1998 JUNE 30, 1998 ADJUSTMENTS 30, 1998(A)
-------------- ------------- ----------- -----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Net Sales............... $ 77.3 $ 41.0 $ 118.3
Cost of Sales........... 20.3 11.8 $ (0.8)(b) 31.3
---------- --------- ---------- -------
Gross profit.......... 57.0 29.2 0.8 87.0
Selling, general and
administrative
expenses............... 51.6 25.6 78.9
Depreciation and
amortization......... 0.9 (c)
CD&R Advisory fee..... 0.2 (d)
Executive compensation
restructuring........ (0.3)(e)
Insurance coverage.... 0.1 (f)
Compensation expense.. 0.8 (g)
---------- --------- ---------- -------
Income (loss) from
operations............. 5.4 3.6 (0.9) 8.1
---------- --------- ---------- -------
Interest income
(expense), net......... 0.1 (2.7) (5.7)(h) (8.3)
Exchange gain (loss).... 1.4 (1.3) 0.1
Other income (expense),
net.................... 0.1 0.2 0.3
---------- --------- ---------- -------
Income (loss) before
taxes.................. 7.0 (0.2) (6.6) 0.2
Income tax expense
(benefit).............. 2.9 0.4 (2.3)(i) 1.0
---------- --------- ---------- -------
Net Income (loss)(j)(k). $ 4.1 $ (0.6) $ (4.3) $ (0.8)
========== ========= ========== =======
<CAPTION>
Other data:
<S> <C> <C> <C> <C>
Ratio of earnings to
fixed charges(l)....... 18.5 $ -- 1.0
========== ========= =======
</TABLE>
30
<PAGE>
NOTES TO UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
(IN MILLIONS)
(a) The Acquisition was accounted for as a purchase. The purchase price for
the Jafra Business of approximately $206.3 includes $200 in cash and an
estimated $6.3 of direct costs. The $200.0 cash purchase price includes $2.4
cash received, $12.9 of accrued withholding taxes to be paid by the Company
on behalf of Gillette subsequent to the closing date of the Acquisition and
the remaining $184.7 paid directly to Gillette in cash. Accordingly, the
purchase price has been allocated to the assets and liabilities acquired
based upon estimates of their respective fair values at the date of
Acquisition based on valuations and other studies that have not yet been
finalized. A preliminary allocation of the purchase price has been made to
major categories of assets and liabilities based on Company estimates. The
actual allocation of purchase cost and the resulting effect on income from
operations may differ significantly from the preliminary amounts included
herein. Although the final allocation has not yet been determined, the
following sets forth certain preliminary allocations:
<TABLE>
<S> <C>
Net tangible assets acquired........................................... $ 75.6
Allocation of excess purchase price:
Property, plant and equipment........................................ 18.4
Deferred income tax liability........................................ (0.6)
Accrual of restructuring/rationalization costs....................... (4.0)
Other assets......................................................... 0.4
Trademarks........................................................... 53.8
Goodwill............................................................. 62.7
------
Total.............................................................. $206.3
======
</TABLE>
Pursuant to the Acquisition Agreement, the purchase price paid by Parent for
the Jafra Business is to be adjusted by the difference, if any, between the
adjusted net book value (as defined) of the Jafra Business as of the closing
date, and the adjusted net book value as of September 30, 1997. On June 22,
1998, Gillette sent to Parent a notice requesting an additional payment of
approximately $6.9 (net of a receivable from Gillette of $5.0). On July 10,
1998, Parent delivered a notice disputing certain items, and requested
payment of $5.0 from Gillette. Under the terms of the Acquisition Agreement,
the parties are required to submit their dispute over the purchase price
adjustment to arbitration if such dispute cannot be resolved. Parent and
Gillette are continuing to discuss the resolution of the purchase price
adjustment. Although management cannot predict the outcome of the purchase
price adjustment dispute at this time, management does not believe that the
resolution of such dispute will have a material adverse effect on the
Company's business, financial condition or results of operations.
Accordingly, the impact of the dispute has not been reflected in the
estimate of the cost of the Acquisition. The amount of the additional
payment, if any, to Gillette will be allocated as an increase to goodwill.
In conjunction with the Acquisition, the Company recorded a $4.0 accrual for
restructuring and rationalization costs. The Company is currently planning
the closure of certain distribution facilities and related termination of
certain employees. No amounts were charged against this accrual through June
30, 1998 and the amount of the accrual has not been adjusted subsequent to
the Closing of the Acquisition.
(b) The preliminary allocation of purchase cost includes an increase in
certain finished goods inventory of approximately $2.5. Substantially all of
this inventory is expected to be sold within the 12 months following the
Acquisition which will result in a charge to cost of sales. This non-
recurring charge has not been reflected in the Pro Forma Combined Statements
of Operations. Cost of goods sold for the two months ended June 30, 1998
includes approximately $0.8 attributable to the write-up of finished goods.
This non-recurring amount has been eliminated in the Pro Forma Combined
Statement of Operations for the six months ended June 30, 1998.
(c) The application of purchase accounting is expected to result in an
increase in depreciation and amortization of $2.8 annually. The adjustments
for estimated pro forma depreciation and amortization are based on their
estimated fair values. Property, plant and equipment is expected to be
depreciated over estimated useful lives
31
<PAGE>
ranging from 3 to 10 years for machinery and equipment and 40 years for
buildings and improvements. Other intangible assets and goodwill are
expected to be amortized over their estimated useful lives, not to exceed 40
years. For pro forma purposes, a 40 year life has been used for other
intangible assets and goodwill, as the assets are believed to have
indefinite useful lives.
(d) Pursuant to a Consulting Agreement entered into as a result of the
Acquisition, CD&R will receive a fee for management consulting, monitoring
and financial advisory services provided to the Company. The fee will
initially be $0.5 per annum. CD&R manages CD&R Fund V, which is the
Company's largest stockholder. See "Certain Relationships and Related
Transactions."
(e) In connection with the Acquisition, the Company terminated certain
executive compensation plans including the Gillette ESOP plan. The Company
replaced these plans with stock options that will qualify for fixed plan
accounting under APB No. 25. The net reduction in expense for such executive
compensation is estimated to be $0.9 and $0.3 for the year ended December
31, 1997 and for the six months ended June 30, 1998, respectively.
(f) The Company believes that certain efficiencies were realized in connection
with its insurance coverages as a result of operating as a subsidiary of
Gillette and estimates that its cost of insurance will be approximately $0.3
greater annually on a stand-alone basis.
(g) In connection with the Transactions, the Company has replaced certain
senior management personnel and expects to incur $2.3 annually in additional
compensation expense.
(h) The pro forma adjustments to interest expense are based on the amounts
borrowed and the rates in effect as of the Closing:
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, 1997 JUNE 30, 1998
----------------- ----------------
<S> <C> <C>
Revolving Credit Facility--$15.0 at
8.5%(1)................................ $ 1.3 $0.4
Term Loan Facility--$25.0 at 8.5%(1).... 2.2 0.7
Senior Subordinated Notes Offering--
$100.0 at 11.75%....................... 12.0 4.0
Estimated amortization of debt issuance
costs.................................. 1.6 0.5(2)
----- ----
Pro forma interest expense.............. 17.1 5.6
Elimination of historical interest
income, net ........................... 0.3 0.1
----- ----
Pro forma adjustment to interest ex-
pense, net............................. $17.4 $5.7(3)
===== ====
</TABLE>
(1) The borrowings bear interest at an annual rate of LIBOR plus a margin
not to exceed 2.625% or an alternate base rate (the higher of the prime
rate and the federal funds rate plus 1%, plus an applicable margin not
to exceed 1.625%). 8.5% represents a reasonable approximation of the
interest rate in effect at the time the borrowings were drawn.
(2) The Company incurred approximately $13.7 of fees and expenses related to
the Senior Subordinated Notes Offering, the Revolving Credit Facility
and the Term Loan facility. Such costs are being amortized over the term
of the related indebtedness.
(3) Amount represents the adjustment to interest expense related to the four
months ended April 30, 1998 of the predecessor company. The two months
ended June 30, 1998 of the successor reflects the capitalization
resulting from the Transactions. Accordingly, interest expense for such
period has not been adjusted.
The pro forma adjustments to interest expense include the effects of
Mexican withholding tax (currently expected to be 4.9%) on Jafra S.A.'s
obligations.
Each 0.125% change in interest rates in respect of the Revolving Credit
Facility would increase or decrease pro forma interest expense by less
than $0.1 for both the year ended December 31, 1997 and the six months
ended June 30, 1998.
(i) The tax effects of the pro forma adjustments to income (loss) before
income taxes is based on the applicable statutory tax rates in the relevant
jurisdictions. The pro forma adjustments assume that no valuation reserves
would be required under SFAS 109 "Accounting for Income Taxes."
The pro forma adjustments to income tax expense includes the estimated tax
effect of inflation and exchange losses relating to Jafra S.A.'s
Obligations in Mexico.
32
<PAGE>
Undistributed earnings of the Company's foreign subsidiaries are
considered to be indefinitely reinvested and, accordingly, no provision
for U.S. federal and state income taxes has been provided thereon. Upon
distribution of those earnings in the form of dividends or otherwise, the
Company would be subject to both U.S. income taxes (subject to an
adjustment for foreign tax credits) and withholding taxes payable to the
various foreign countries.
(j) EBITDA is defined as net income before net interest expense, income tax
expense, depreciation and amortization. The Company believes that EBITDA
provides useful information regarding the Company's ability to service debt
but should not be considered in isolation or as a substitute for the
combined statement of operations or cash flow data prepared in accordance
with generally accepted accounting principles and included elsewhere in this
Prospectus or as a measure of the Company's operating performance,
profitability or liquidity. While EBITDA is frequently used as a measure of
operations and the ability to meet debt service requirements, it is not
necessarily comparable to other similarly titled captions of other companies
due to differences and methods of calculation.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
-------------------------------
PRO FORMA PRO
HISTORICAL ADJUSTMENTS FORMA(A)
---------- ----------- --------
<S> <C> <C> <C>
EBITDA....................................... $24.3 $(2.2) $22.1
===== ===== =====
Adjusted EBITDA.............................. $30.3
=====
</TABLE>
<TABLE>
<CAPTION>
PREDECESSOR SUCCESSOR
FOUR MONTHS TWO MONTHS PRO FORMA
ENDED ENDED PRO FORMA SIX MONTHS ENDED
APRIL 30, 1998 JUNE 30, 1998 ADJUSTMENTS JUNE 30, 1998(A)
-------------- ------------- ----------- ----------------
<S> <C> <C> <C> <C>
EBITDA............ $8.3 $3.8 $-- $ 12.1
==== ==== ==== ======
Adjusted EBITDA... $ 16.0
======
</TABLE>
(k) Pro forma adjusted EBITDA reflects (i) the elimination of certain non-
recurring items that affected 1997 historical amounts and (ii) certain
changes in the cost structure of the Company that are expected to occur
following the consummation of the Transactions, as set forth below:
<TABLE>
<CAPTION>
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, 1997 JUNE 30, 1998
----------------- ----------------
<S> <C> <C> <C> <C>
Historical EBITDA:
Predecessor....................... $24.3 $8.3
Successor......................... 3.8
Pro forma adjustments............... (2.2) --
Non-recurring items:
Reorganization expenses(1)........ 3.5 --
Gain from legal settlement(2)..... (2.3) --
Gain on sale of divested facili-
ty(3)............................ (0.8) --
--------
Total non-recurring items......... 0.4 --
--------- ---------
Cost savings:
Adjustment of existing employee
benefit plans(4)................. 1.4 0.7
Restructuring/rationalization(5).. 5.3 2.7
Elimination of expatriate bene-
fits(6).......................... 1.1 0.5
--------
Total cost savings(7)............. 7.8 3.9
--------- ---------
Pro forma adjusted EBITDA......... $ 30.3 $ 16.0
========= =========
</TABLE>
--------
(1) In 1997, the Company incurred approximately $3.5 of cash severance costs
relating to the realignment of certain foreign operations. The Company
believes that such realignment has been completed and that such
severance costs are non-recurring.
33
<PAGE>
(2) In 1997, the Company recorded a gain of approximately $2.3 relating to a
cash recovery under a legal settlement brought by the Company against a
software vendor.
(3) In 1997, the Company recorded a cash gain of approximately $0.8 relating
to the sale of a facility that had been previously written-off.
(4) The Company has adjusted certain U.S. employee benefit plans which were
provided to employees, including defined benefit pension, retirement
savings, retiree medical and health and welfare plans, at an estimated
annual savings of $1.4.
(5) The Company plans to rationalize certain distribution, manufacturing and
administrative functions which the Company believes will reduce annual
expenses by $5.3. In addition, estimated non-recurring charges of
approximately $4.0 corresponding to the restructuring/rationalization
have not been reflected in the Unaudited Pro Forma Combined Statement of
Operations.
(6) The Company plans to convert to local status or replace certain
individuals currently employed on an expatriate basis. The Company
estimates that the annual cost savings compared to the existing
expatriate policy will be approximately $1.1.
(7) The anticipated cost savings included in pro forma adjusted EBITDA are
based on estimates and assumptions made by the Company that are
inherently uncertain, although considered reasonable by the Company, and
are subject to significant business, economic and competitive
uncertainties and contingencies, all of which are difficult to predict
and many of which are beyond the control of the Company. As a result,
there can be no assurance that such savings will be achieved.
(l) For purposes of determining the ratio of earnings to fixed charges,
earnings are defined as earnings before income taxes and extraordinary
items, plus fixed charges. Fixed charges include interest expense on all
indebtedness, amortization of deferred financing fees, and one-third of
rental expense on operating leases representing that portion of rental
expense deemed to be attributable to interest. On a pro forma basis,
earnings before income taxes and fixed charges were insufficient to cover
fixed charges by $2.1 for the year ended December 31, 1997. For the two
months ended June 30, 1998, earnings before income taxes and fixed charges
were insufficient to cover fixed charges by $0.2. The calculation of pro
forma earnings to fixed charges includes non-cash depreciation and
amortization expense of $7.4 and $3.8 and non-cash amortization expense of
deferred financing costs of $1.6 and $0.8 for the year ended December 31,
1997 and the six months ended June 30, 1998 respectively.
34
<PAGE>
SELECTED HISTORICAL COMBINED FINANCIAL DATA
The following table sets forth the combined financial data with respect to
the Company for the periods ended and as of the dates indicated. The historical
combined statement of operations data for the years ended December 31, 1995,
1996 and 1997 and the historical combined balance sheet data as of December 31,
1996 and 1997 are derived from the audited combined financial statements and
the historical combined statements of operations data for the six months ended
June 30, 1997, four months ended April 30, 1998 and the two months ended June
30, 1998 and the historical combined balance sheet data as of June 30, 1997,
April 30, 1998 and June 30, 1998 are derived from the unaudited combined
financial statements of the Company, both of which are included elsewhere in
this Prospectus. This information should be read in conjunction with such
combined financial statements and "Management's Discussion and Analysis of
Financial Condition and Results of Operations." The historical combined
statement of operations data for the years ended December 31, 1993 and 1994 and
the historical combined balance sheet data as of December 31, 1993, 1994 and
1995 are derived from the unaudited combined financial statements of the
Company that are not included in this Prospectus. The data presented for the
six months ended June 30, 1997, for the four months ended April 30, 1998 and
for the two months ended June 30, 1998 are derived from the unaudited combined
financial statements included elsewhere in this Prospectus and include, in the
opinion of management, all adjustments, consisting of normal recurring
adjustments necessary to present fairly the data for such periods. Prior to
1998, accounts of subsidiaries and operations outside the United States are
included in the historical combined financial data on the basis of fiscal years
generally ending November 30.
<TABLE>
<CAPTION>
PREDECESSOR
----------------------------------------------------------------------
YEAR ENDED DECEMBER 31, SIX MONTHS FOUR MONTHS TWO MONTHS
---------------------------------------- ENDED ENDED ENDED
1993 1994 1995 1996 1997 JUNE 30, 1997 APRIL 30, 1998 JUNE 30, 1998
------ ------ ------ ------ ------ ------------- -------------- -------------
(IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
DATA:
Net sales.............. $258.1 $263.9 $218.4(a) $224.5 $229.5 $110.1 $ 77.3 $ 41.0
Cost of sales.......... 55.7 59.8 54.3 58.2 59.1 28.1 20.3 11.8
------ ------ ------ ------ ------ ------ ------ ------
Gross profit........... 202.4 204.1 164.1 166.3 170.4 82.0 57.0 29.2
Selling, general and
administrative
expenses (b).......... 155.3 172.3 154.0 155.8 149.4 73.6 51.6 25.6
------ ------ ------ ------ ------ ------ ------ ------
Income from operations. 47.1 31.8 10.1 10.5 21.0 8.4 5.4 3.6
Other income (expense)
Exchange gain (loss)... (0.5) 0.1 25.5(c) -- 0.3 1.4 (1.3)
Interest income, net... 4.9 0.5 4.3 0.9 0.3 0.1 0.1 (2.7)
Other expense, net..... (1.0) (1.0) (1.0) (1.4) (1.3) 0.1 0.1 0.2
------ ------ ------ ------ ------ ------ ------ ------
Income before income
taxes and
extraordinary credit.. 50.5 31.4 38.9 10.0 20.3 8.6 7.0 (0.2)
Income taxes........... 14.4 13.4 6.1 2.6 4.8 2.1 2.9 0.4
------ ------ ------ ------ ------ ------ ------ ------
Income before
extraordinary credit.. 36.1 18.0 32.8 7.4 15.5 6.5 4.1 (0.6)
Extraordinary credit
(d)................... -- -- -- 2.6 -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Net income............. $ 36.1 $ 18.0 $ 32.8 $ 10.0 $ 15.5 $ 6.5 $ 4.1 $ (0.6)
====== ====== ====== ====== ====== ====== ====== ======
BALANCE SHEET DATA (AT
END OF PERIOD):
Cash and cash equiva-
lents................. $ 4.1 $ 6.2 $ 7.5 $ 8.7 $ 10.2 $ 11.6 $ 1.9 $ 18.4
Total working capital
(e)................... 85.4 75.1 49.4 24.4 31.1 25.6 41.0 34.3
Property, plant and
equipment, net........ 26.1 31.8 43.7 41.8 43.7 44.0 39.6 56.2
Total assets........... 203.1 217.4 203.1 164.5 175.2 179.6 141.9 277.3
Total debt............. -- -- -- -- 8.5 -- -- 140.0
Stockholders' equity... 111.7 120.8 108.7 78.6 77.3 81.0 90.1 78.2
OTHER FINANCIAL DATA:
EBITDA (f)............. $ 48.6 $ 34.1 $ 37.4 $ 15.9 $ 24.3 $ 9.9 $ 8.3 $ 3.8
Net cash provided by
(used in) operating
activities............ 35.8 28.3 27.5 5.4 26.7 5.2 (8.0) 8.2
Net cash provided by
(used in) investing
activities............ (6.2) (8.5) (13.9) (4.5) (5.8) (3.4) 2.6 (198.1)
Net cash provided by
(used in) financing
activities............ (33.6) (16.5) (13.4) 2.4 (19.0) 2.5 (8.8) 208.3
Ratio of earnings to
fixed charges (g)..... 25.0x 9.3x 22.6x 5.8x 12.9x 18.2x 18.5x (g)
Depreciation and amor-
tization.............. 3.0 3.2 2.8 3.3 4.4 1.4 1.4 1.3
Capital expenditures... 6.1 10.7 20.3 10.3 8.9 3.7 3.2 0.5
</TABLE>
35
<PAGE>
- --------
(a) In 1995, net sales in Mexico declined $59 or 43%, primarily as a result of
the December 1994 devaluation of the Mexican peso and related economic
weakness in Mexico. See "Management's Discussion and Analysis of Financial
Condition and Results of Operations."
(b) Selling, general and administrative expenses include the following non-
recurring items: for 1995, net reorganization charges of $9.6; for 1996, a
$5.4 non-cash charge for the write-off of certain computer systems and
related costs, and net reorganization charges of $0.7; and for 1997, net
reorganization charges of $3.5 that were partially offset by a cash
recovery of $2.3 relating to the $5.4 charge taken in 1996, resulting from
the settlement of a legal action brought by the Company against a computer
systems contractor, and a gain of $0.8 relating to the sale of a facility
that had previously been written-off.
(c) Other income (expense), net for 1995 includes a $25.5 foreign exchange
gain in Jafra S.A. resulting from having had U.S. dollar denominated
intercompany receivables from affiliates at the time of the December 1994
peso devaluation.
(d) Extraordinary credit represents the cancellation of indebtedness (net of
income tax effect of $0.9) due to an affiliate resulting from
discontinuation of direct operations in one of Jafra's markets.
(e) Total working capital is defined as current assets less current
liabilities excluding third party short term debt with third parties.
(f) EBITDA is defined as net income before net interest expense, income tax
expense, depreciation and amortization. EBITDA for 1995 includes a $25.5
foreign exchange gain in Jafra S.A. resulting from having had U.S. dollar
denominated intercompany receivables from affiliates at the time of the
December 1994 peso devaluation, which was partially offset by $9.6 of non-
recurring charges relating to the reorganization and restructuring of
certain foreign operations. EBITDA for 1996 includes a non-recurring
charge in Jafra S.A. of $5.4 relating to the write-off of certain computer
systems and related costs, and net reorganization charges of $0.7. EBITDA
for 1997 includes $3.5 of cash severance costs relating to realignment of
certain foreign operations, which was partially offset by a cash gain of
$2.3 relating to a recovery under a legal settlement and a $0.8 cash gain
relating to the sale of a facility that was previously written-off. EBITDA
for the six months ended June 30, 1997 includes $1.2 of cash severance
costs relating to realignment of certain foreign operations, which was
more than offset by a cash gain of $2.1 relating to a recovery under a
legal settlement. The Company believes that EBITDA provides useful
information regarding the Company's ability to service debt but should not
be considered in isolation or as a substitute for the combined statement
of operations or cash flow data prepared in accordance with the generally
accepted accounting principles and included elsewhere in this Prospectus
or as a measure of the Company's operating performance, profitability or
liquidity. While EBITDA is frequently used as a measure of operations and
the ability to meet debt service requirements, it is not necessarily
comparable to other similarly titled captions of other companies due to
differences and methods of calculation.
(g) For purposes of determining the ratio of earnings to fixed charges,
earnings are defined as earnings before income taxes and extraordinary
items, plus fixed charges. Fixed charges include interest expense on all
indebtedness, amortization of deferred financing fees, and one-third of
rental expense on operating leases representing that portion of rental
expense deemed to be attributable to interest. For the two months ended
June 30, 1998, earnings before income taxes and fixed charges were
insufficient to cover fixed charges by $0.2.
36
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This discussion contains forward-looking statements concerning the Company's
operations, economic performance and financial condition, all of which involve
risks and uncertainties. Forward-looking statements are made based upon
management's expectations and beliefs concerning future developments and their
potential effect upon the Company. The Company's actual results may differ
significantly from management's expectations and there can be no assurance
that the effect of future developments on the Company will be those
anticipated by management. There are certain factors that might cause such a
difference. These factors include, but are not limited to, product demand and
market acceptance risks, the effect of economic conditions, the impact of
competitive products and pricing, product development, sales representative
turnover, commercialization and technological difficulties, capacity and
supply constraints or difficulties, availability of capital resources, general
business and economic conditions, the effect of the Company's accounting
policies, the impact of laws in various jurisdictions that may restrict direct
selling activities and other risks described herein. See "Risk Factors."
GENERAL
The following discussion and analysis of the results of operations,
financial condition and liquidity of the Company should be read in conjunction
with the combined financial statements of the Company and the "Unaudited Pro
Forma Combined Financial Statements" and the related notes thereto included
elsewhere in this Prospectus.
OVERVIEW
Jafra is a multi-level direct seller of premium skin and body care products,
color cosmetics, fragrances, nutritional supplements and other personal care
products. The Company sells its products to independent, self-employed sales
representatives. The Company has been in operation since 1956 and was
purchased by Gillette in 1973. Jafra entered Latin America in 1977 and Europe
in 1978. Since 1973, the Company's sales have grown at a compound annual
growth rate of 18.5%. Parent acquired the Jafra business from Gillette on
April 30, 1998.
The Company's revenues consist of sales of products and non-resale
materials, such as product brochures and certain sales aids. Jafra's sales
representatives earn income on the difference between the wholesale prices
paid to Jafra and the retail prices charged to consumers and commissions on
sales made by other sales representatives whom they have recruited. Jafra
commissions are included in selling, general and administrative ("SG&A")
expenses.
Although Jafra currently has operations in ten countries and
distributorships in a number of other countries, most of the Company's 1997
sales were derived from the United States, Mexico and Germany. Sales in Mexico
represented 46.2% of total sales for the two and six months ended June 30,
1998 and 42.5% of total sales in 1997, an increase from 34.9% of total sales
in 1995. Sales in the United States over the same period have remained flat at
approximately 31% of total sales, and sales in Germany were 12.5% of total
sales in 1997, as compared to 17.2% in 1995.
The two key revenue drivers in the direct selling industry are the number of
sales representatives and the amount of sales, or productivity, per sales
representative. As of June 30, 1998, Jafra had 235,100 sales representatives
worldwide, an increase of 6.5% over December 31, 1997. At the end of 1997,
Jafra had 220,800 sales representatives worldwide, with average revenues per
sales representative being approximately $1,070 for all of 1997. The Company's
worldwide sales representative base increased 1.9% to 220,800 at the end of
1997 from 216,700 at the end of 1995. Sales representative productivity
increased 6.2% over this period, to $1,070 in 1997 from $1,008 in 1995.
Jafra's sales representatives have been affiliated with the Company for an
average of four years, which the Company believes is among the highest average
tenure in the direct selling industry.
37
<PAGE>
Jafra believes that the size and productivity of its sales representative
base are influenced by numerous factors, including: (i) new product
introductions and product line extensions, (ii) sales incentives such as
discounts on products, (iii) non-monetary incentives such as recognition, (iv)
product price increases, (v) leadership provided by senior management, and
(vi) the general economic condition of the countries in which it conducts
business. The Company offers lower prices on bundled products and volume
discounts, which has historically led to increased sales. New product
introductions, product line extensions and incentives such as prizes and trips
to national conventions have also served to increase productivity and sales.
The Company's results of operations are impacted by the timing of its
promotional activities. Products introduced in the prior five years accounted
for 70%, 58% and 54% of total sales for the years 1997, 1996 and 1995,
respectively. Jafra prices its products slightly below prestige level products
that are sold in department stores. Compared to its direct selling
competitors, this generally places prices on Jafra products on par with Mary
Kay product prices, but higher than Avon's prices.
Sales outside of the United States aggregated 69%, 68% and 69% of the
Company's total net sales in 1997, 1996 and 1995, respectively. Accordingly,
the Company has experienced and continues to be exposed to foreign exchange
risk. Although the Company historically has not entered into foreign currency
hedging contracts to mitigate this risk, it may do so in the future. Foreign
currency fluctuations can also impact operating results. During 1998, the
stronger U.S. dollar negatively affected revenues and operating income. Had
exchange rates remained constant for the six month 1998 and 1997 periods,
revenue would have been approximately $7 million higher and income from
operations would have been approximately $1 million higher than reported.
The Company derived approximately 46.2% of its net sales for the two and six
months ended June 30, 1998 and 42.5% for the year ended December 31, 1997 from
Mexico, substantially all of which were denominated in Mexican pesos. In 1997,
approximately 50% of the Company's total production was manufactured in
Mexico, and approximately 65% of Jafra S.A.'s total costs were denominated in
pesos, which partially mitigates Mexican peso exchange risk. The Company is
seeking other ways, including increased local sourcing of raw materials, to
reduce the dollar cost component of its products manufactured in Mexico. In
1995, the Company's sales in Mexico decreased by $59.0 million primarily as a
result of the December 1994 devaluation of the Mexican peso and the
corresponding economic weakness in Mexico. The impact of the decrease in sales
in 1995 on the results of operations was partially offset by an exchange gain
of $25.5 million in Mexico, which was primarily attributable to U.S. dollar
denominated receivable balances with affiliates. As a result of the
Transactions, Jafra S.A. has significant U.S. dollar denominated indebtedness.
There can be no assurance that future declines in the U.S. dollar-Mexican peso
exchange rate will not have a material adverse affect on the Company's results
of operations and financial condition.
SG&A expenses make up the largest portion of Jafra's costs. SG&A costs
consist primarily of overhead expenses related to administration,
manufacturing, distribution and marketing. The Company believes that a
substantial portion of SG&A costs are fixed. The largest component of variable
costs consist of sales commissions (paid to sales representative managers on
the wholesale value of their sales and the sales made by their recruits) which
were $35.4 million, or 15.4% of sales in 1997.
RECENT DEVELOPMENTS
Pursuant to the Acquisition Agreement, the purchase price paid by Parent for
the Jafra Business is to be adjusted by the difference, if any, between the
adjusted net book value (as defined) of the Jafra Business as of the Closing
date, and the adjusted net book value as of September 30, 1997. On June 22,
1998, Gillette sent to Parent a notice requesting an additional payment of
approximately $6.9 million (net of a receivable from Gillette of $5.0
million). On July 10, 1998, Parent delivered a notice disputing certain items,
and requested payment of $5.0 million from Gillette. Under the terms of the
Acquisition Agreement, the parties are required to submit their dispute over
the purchase price adjustment to arbitration if such dispute cannot be
resolved. Parent and Gillette are continuing to discuss the resolution of the
purchase price adjustment. Although management cannot predict the outcome of
the purchase price adjustment dispute at this time, management does not
believe that the
38
<PAGE>
resolution of such dispute will have a material adverse effect on the
Company's business, financial condition or results of operations.
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED JUNE 30,
------------------------------------------- ------------------------------
1995 1996 1997 1997 1998
------------- ------------- ------------- ------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales.................................. $218.4 100.0% $224.5 100.0% $229.5 100.0% $110.1 100.0% $ 118.3 100.0%
Cost of sales.............................. 54.3 24.9 58.2 25.9 59.1 25.8 28.1 25.5 32.1 27.1
------ ----- ------ ----- ------ ----- ------ ----- -------- -----
Gross profit............................... 164.1 75.1 166.3 74.1 170.4 74.2 82.0 74.5 86.2 72.9
Selling, general & administrative expenses. 154.0 70.5 155.8 69.4 149.4 65.1 73.6 66.8 77.2 65.3
------ ----- ------ ----- ------ ----- ------ ----- -------- -----
Income from operations..................... 10.1 4.6 10.5 4.7 21.0 9.1 8.4 7.6 9.0 7.6
Exchange gain (loss)....................... 25.5 11.7 -- -- 0.3 0.1 0.1 -- .1 --
Interest income, net....................... 4.3 2.0 0.9 0.4 0.3 0.1 0.1 0.1 (2.6) (2.2)
Other income (expense), net................ (1.0) (0.5) (1.4) (0.6) (1.3) (0.5) -- 0.1 0.3 0.3
------ ----- ------ ----- ------ ----- ------ ----- -------- -----
Income before income taxes and
extraordinary item........................ 38.9 17.8 10.0 4.5 20.3 8.8 8.6 7.8 6.8 5.7
Income taxes............................... 6.1 2.8 2.6 1.2 4.8 2.1 2.1 1.9 3.3 2.8
------ ----- ------ ----- ------ ----- ------ ----- -------- -----
Income before extraordinary credit......... 32.8 15.0 7.4 3.3 15.5 6.7 6.5 5.9 3.5 3.0
Extraordinary credit....................... -- -- 2.6 1.2 -- -- -- -- -- --
------ ----- ------ ----- ------ ----- ------ ----- -------- -----
Net income................................. $ 32.8 15.0% $ 10.0 4.5% $ 15.5 6.7% $ 6.5 5.9% $ 3.5 3.0%
====== ===== ====== ===== ====== ===== ====== ===== ======== =====
STATEMENT OF CASH FLOWS DATA:
Net cash (used in) provided by Operating
Activities................................ $ 27.5 $ 5.4 $ 26.7 $ 5.2 $ 0.2
Net cash (used in) provided by Investing
Activities................................ (13.9) (4.5) (5.8) (3.4) (195.5)
Net cash (used in) provided by Financing
Activities................................ (13.4) 2.4 (19.0) 2.5 199.4
Effect of Exchange Rate Changes on Cash.... 0.9 (2.2) (0.3) (1.4) (0.5)
Effect of Accounting Calendar Change
on Cash................................... -- -- -- -- 6.3
------ ------ ------ ------ --------
Net Increase (Decrease) in Cash............ $ 1.1 $ 1.1 $ 1.6 $ 2.9 $ 9.9
====== ====== ====== ====== ========
</TABLE>
- --------
(1) Pursuant to the terms of the Acquisition Agreement (See "The
Transactions"), the Company was acquired by Parent on April 30, 1998.
Accordingly, for purposes of Management's Discussion and Analysis of
Financial Condition and Results of Operations, and Discussion of
Business, the results of operations and cash flows for the six months
ended June 30, 1998 are a combination of the historic results of the
Predecessor for the four months ended April 30, 1998 and the Company's
results of operations for the two months ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997
Net Sales
Net sales in 1998 increased to $118.3 million from $110.1 million in 1997,
an increase of $8.2 million, or 7.4%. The total number of sales
representatives increased by approximately 14,300 in 1998, or 6.5%. Net sales
in Latin America rose 16.6% to $59.6 million in 1998 from $51.1 million in
1997 due to a larger sales representative base, product price increases, the
Company's successful annual convention and introduction of new products.
Increased sales in Latin America were partially offset by decreased sales in
Western Europe, which declined 7.5% to $22.1 million in 1998 from $23.9
million in 1997. The reduction in sales in Western Europe was due principally
to a decrease of 9.6% and 11.6% in the sales representative base and sales
representative productivity in Germany, respectively. Additionally, changes in
exchange rates in Germany during this period resulted in losses of $1.2
million in sales and a decrease of $0.3 million in profits from operations.
Gross Profit
Gross profit in 1998 increased to $86.2 million from $82.0 million in 1997,
an increase of $4.2 million or 5.1% as a result of the increase in sales.
Gross margin decreased to 72.9% from 74.5%. The decrease in gross margin was
due principally to the effects of accounting for the Acquisition, $0.8 million
was included in cost of
39
<PAGE>
sales for the two months ended June 30, 1998 relating to the write-up of
certain inventories as a result of accounting for the Acquisition.
Selling, general and administrative expenses
SG&A expenses in 1998 increased to $77.2 million from $73.6 million in 1997,
an increase of $3.6 million or 4.9%. SG&A as a percentage of net sales
decreased in 1998 to 65.3% from 66.9% for 1997, a decline of 1.6% of net
sales. The decrease was due principally to a net decrease of $0.8 million of
non-recurring charges from 1997 to 1998. These non-recurring charges in 1997
were mainly related to reorganization costs and the closing of Jafra's
operations in two markets (Hungary and Canada). SG&A expenses were also lower
due to a decrease of $0.5 million in market research expenses and
infrastructure improvements that provided for increased economies of scale.
Other expense (income)
Net other expense (income) increased to $2.2 million in 1998 from $(0.2)
million in 1997, an increase of $2.4 million. Other expense (income) generally
includes foreign exchange gains and losses, interest income and expenses and
other miscellaneous items. The increase in other expense (income) in 1998 was
primarily due to the recognition of $2.7 million in interest expense on the
Acquisition indebtedness.
Income before income taxes
Income before income taxes decreased $1.8 million, or 20.9% to $6.8 million
in 1998 from $8.6 million in 1997. This decrease was due principally to $2.7
million of interest expense in 1998 resulting from the new debt structure
which was partially offset by a reduction in non-recurring charges of $0.8
million and improvement in profit from operations of $0.6 million.
Net income
Income taxes as a percentage of pre-tax income increased to 48.5% in 1998
from 24.4% in 1997. The increased tax rate resulted principally from valuation
allowances provided against net operating losses in the U.S. and Europe. Net
income for the six months ended June 30, 1998 was $3.5 million as compared to
$6.5 million for the six months ended June 30, 1997. The decrease in net
income of $3.0 million or 46.2% was attributable to an increase in income
taxes of $1.2 million and a decrease in income before taxes of $1.8 million.
YEAR ENDED DECEMBER 31, 1997 COMPARED TO THE YEAR ENDED DECEMBER 31, 1996
Net sales
Net sales for 1997 increased to $229.5 million from $224.5 million in 1996,
an increase of $5.0 million, or 2.2%. The Company's year end number of total
sales representatives increased by approximately 12,300, or nearly 6%, in
1997, primarily in Latin America. Productivity increased slightly to $1,070
per sales representative. Net sales in Latin America rose 23.4% to $111.8
million in 1997 from $90.6 million in 1996 due to a larger sales
representative base, product price increases, the Company's successful
Christmas promotion and introduction of new products. Increased sales in Latin
America were partially offset by decreased sales in Western Europe, which
declined 22.3% to $46.8 million in 1997 from $60.2 million in 1996. The
reduction in sales in Western Europe was due principally to losses resulting
from currency depreciations and a significant reduction in sales
representative productivity mainly due to weak economic conditions.
Gross profit
Gross profit for 1997 increased to $170.4 million from $166.3 million in
1996, an increase of $4.1 million or 2.5%. Gross margin increased to 74.2%
from 74.1%. The increase in gross profit was due principally to
40
<PAGE>
product price increases as well as improvements in production processes,
particularly in Mexico. These increases were partially offset by higher
manufacturing overhead costs. Gross profit was also negatively impacted by
increased freight costs resulting from a higher than normal use of air freight
to Europe and increased shipping costs in the United States.
Selling, general & administrative expenses
SG&A expenses for 1997 decreased to $149.4 million from $155.8 million for
1996, a decline of $6.4 million, or 4.1%. SG&A as a percentage of net sales
for 1997 decreased to 65.1% from 69.4% for 1996, a decline of 4.3% of net
sales. This decrease resulted primarily from a net decrease of $4.9 million of
non-recurring charges from 1996 to 1997, as discussed below. In addition, SG&A
expenses were lower due to a decrease of $2.2 million in sales and promotional
expenses and infrastructure improvements that provided for increased economies
of scale.
Net non-recurring charges decreased by $4.9 million from 1996 to 1997, as a
result of the following factors. In 1996, the Company wrote off $5.4 million
of charges related to certain proprietary computer systems which were
improperly installed by a vendor. In 1997, $2.3 million of such charges were
recovered through litigation with that vendor. In addition, the Company
incurred $2.4 of charges in 1996 related to market closures in Brazil. These
decreases were partially offset by a $1.7 gain on the sale of property in
Mexico in 1996, for which no similar gain was recorded in 1997, and $2.6
million of charges in 1997 related to the reorganization and realignment of
operations in South America.
Other expense (income)
Net other expense for 1997 increased $0.2 million to $0.7 million from $0.5
million in 1996. Other items generally include foreign exchange gains and
losses, interest income and expense and other miscellaneous items. In 1997,
the Company benefited from foreign exchange gains of $0.3 million. This
benefit was offset by a net reduction in interest income of $0.6 million, and
to a lesser extent from decreases in miscellaneous items, including credit
card fees and amortization of goodwill.
Income before income taxes and extraordinary credit
Income before income taxes and extraordinary credit for 1997 increased $10.3
million, or 102.4%, to $20.3 million from $10.0 million in 1996. This increase
was due principally to the net non-recurring charges recorded in 1996 and
increased gross profit. During 1996, the Company recorded an extraordinary
credit of $2.6 million, recorded net of its tax effect of $0.9 million,
related to the cancellation of indebtedness due to an affiliate resulting from
the discontinuation of the Company's operations in a foreign market.
Net income
The effective tax rate for 1997 decreased 2.3% to 23.6% from 26.0% in 1996.
Net income for the year ended December 31, 1997 was $15.5 million as compared
to $10.0 million in 1996, an increase of $5.5 million or 55.0%. Exclusive of
the impact of the extraordinary credit, the increase in net income in 1997 was
$8.1 million.
YEAR ENDED DECEMBER 31, 1996 COMPARED TO THE YEAR ENDED DECEMBER 31, 1995
Net sales
Net sales for 1996 increased $6.1 million, or 2.8%, to $224.5 million from
$218.4 million for 1995. Sales in all regions increased in 1996 due to price
increases and economic recovery in many parts of Latin America, increased
sales representative productivity due to successful promotional activity in
the U.S. and a small increase in the sales representative base in the U.S. and
Western Europe. This increase was partially offset by a decrease in year-end
total sales representatives by approximately 8,000 persons in Mexico and
Venezuela. The effect of this decline in the number of sales representatives
was offset by an increase in sales representative productivity.
Gross profit
Gross profit for 1996 increased $2.2 million, or 1.3%, to $166.3 million
from $164.1 million in 1995. However, gross margin for the year ended December
31, 1996 decreased 1.0% to 74.1% from 75.1% for 1995. The increase in gross
profit was due principally to higher overall product sales prices worldwide
offset by increased labor and materials costs associated with new products.
Product price increases did not fully recoup increased product costs,
resulting in a decline in gross margins. However, lower freight costs in 1996
to Europe positively impacted gross profit in 1996.
41
<PAGE>
Selling, general & administrative expenses
SG&A expenses for 1996 increased $1.8 million, or 1.2%, to $155.8 million
from $154.0 million for 1995. SG&A as a percentage of net sales for 1996
decreased 1.1% to 69.4% from 70.5% for 1995. This decrease was due primarily
to a reduction in net non-recurring charges of $3.5 million from 1996 as
compared to 1995, as discussed below. The decrease in net non-recurring
charges was partially offset by higher marketing costs to support new product
launches, as well as special events held in Mexico to recruit and motivate
sales representatives. Other SG&A increases included higher sales promotional
expenses of approximately $1.5 million and increased costs related to the
enhancement of software developed in Mexico for use in Germany.
The $3.5 million decrease in net non-recurring charges referred to above
consists of the following factors. The Company incurred certain severance and
other legal costs of $5.6 million related to worldwide reduction in sales
force employees in 1995, for which no similar charges were incurred in 1996.
In addition, the Company incurred $4.0 million of costs related to the closure
and reorganization of markets in the United States, Italy, Holland, Germany,
Spain, and Brazil, as opposed to $2.4 million of such costs related to Brazil
in 1996. The Company also realized a gain in 1996 of $1.7 million related to
the sale of property in Mexico. These decreases were partially offset by the
write-off of $5.4 million of costs in 1996 related to certain proprietary
computer systems which were improperly installed by a vendor.
Other expense (income)
Net other expense (income) increased $29.3 million to a net expense of $0.5
million in 1996 compared to a net income of ($28.8) million in 1995. This
increase in net expenses was primarily due to a foreign currency exchange gain
of $25.5 million in 1995, resulting from U.S. dollar denominated intercompany
receivables from affiliates at the time of the December 1994 peso devaluation,
and a $3.4 million net decrease in interest income in 1996.
Income before income taxes and extraordinary credit
Income before income taxes and extraordinary credit for 1996 decreased $28.9
million to $10.0 million from $38.9 million in 1995. During 1996, the Company
recorded an extraordinary credit of $2.6 million, related to closure of the
Company's Brazilian operations. The Company also recorded net one-time
expenses of $6.1 million related primarily to the write-off of certain
computer software. Excluding non-recurring charges and income, income before
income taxes and extraordinary credit would have been $16.1 million. The
decrease in income before income taxes and extraordinary credit was due
principally to the foreign exchange gain recorded in 1995 of $25.5 million,
reduced interest income of $3.4 million and increased marketing costs in
support of new product launches.
Net income
The effective tax rate for 1996 increased 10.2% to 26.0% from 15.7% in 1995.
The effective income tax rate in 1995 was due to the positive impacts of
inflation effects recognized for tax purposes in Mexico. Net income for 1996
decreased $22.8 million to $10.0 million from $32.8 million in 1995. Exclusive
of the impact of the extraordinary credit of $2.6 million, the decrease in net
income in 1996 was $25.4 million.
LIQUIDITY AND CAPITAL RESOURCES
Cash flows from operations decreased to $0.2 million for the six-month
period ended June 30, 1998 from $5.2 million for the comparable period in
1997. The decrease in cash flow from operations is attributable to a $2.5
million decrease in net income adjusted for depreciation and amortization and
other non-cash items included in net income and a $2.5 million decrease in the
change in working capital over 1997. Operating activities provided net cash
flow of $26.7 million, $5.4 million and $27.5 million in 1997, 1996 and 1995,
respectively. Cash flow from operating activities increased $21.3 million in
1997 compared to 1996 primarily due to a $15.5 million decrease in inventories
following the success of the Company's 1997 Christmas promotion. The increase
in net income of $5.4 million and a decrease of $4.2 million related to taxes
also served to increase the Company's cash position in 1997. These gains were
partially offset by a net $2.5 million decrease in accounts payable. Cash flow
from operating activities decreased $22.1 million to $5.4 million in 1996 from
$27.5 million
42
<PAGE>
in 1995. This decrease was primarily due to a $22.8 million reduction in net
income which was due to foreign exchange gains in 1995 that resulted from U.S.
dollars denominated intercompany receivables from affiliates at the time of
the December 1994 peso devaluation.
Cash flows from investing activities decreased to a net use of cash of
$195.5 million in 1998 from a net use of cash of $3.4 million in 1997. The
decrease in cash flows from investing activities is attributable to the cash
requirements of the Acquisition of $197.6 million which was partially offset
by proceeds from the sale of certain property and equipment of $5.9 million
during the four month period ended April 30, 1998 in anticipation of the
Acquisition. Investing activities required net cash of $5.8 million, $4.5
million, $13.9 million in 1997, 1996 and 1995, respectively. The substantial
part of the Company's historical capital expenditures in the last three years
has resulted from investments in equipment and facilities to augment the
Company's manufacturing capabilities as well as from data processing
requirements. In 1995, the Company opened a new customer service and office
facility in Mexico City at a cost of approximately $13.3 million. Capital
expenditures in 1998 are expected to be $12.1 million, comprised of $7.0
million for maintenance, $2.0 million for information technology and $3.1
million for expenditures related to opening of new markets. The Company
expects that capital expenditures will remain relatively flat for the next
several years.
Cash flows from financing activities increased to $199.5 million in 1998
from $2.5 million of cash provided by financing activities in 1997. Cash flows
from financing activities prior to the Acquisition represent the intercompany
transactions between the Company and Gillette. Cash flows from financing
activities subsequent to the Acquisition reflect proceeds from the financing
of the Transactions, including; $100.0 million from the issuance of 11 3/4%
Senior Subordinated Notes, $25.0 million from borrowing under the Term Loan
Facility, $15.0 million from borrowing under the Revolving Credit Facility,
and $78.9 million contributed by CD&R and other investors. The Senior
Subordinated Notes represent the several obligation of JCI and Jafra S.A. in
the amount of $60 million and $40 million, respectively, with each
participating on a pro rata basis upon redemption. The Notes mature in the
year 2008 and bear a fixed interest rate of 11.75% payable semi-annually. Each
Issuer has guaranteed the obligations under the Notes of the other on a senior
subordinated basis, subject to a 30-day standstill period prior to enforcement
of such guarantees. In addition, the Parent has fully and unconditionally
guaranteed the Notes on a senior subordinated basis. The U.S. Issuer currently
has no U.S. subsidiaries. Each acquired or organized U.S. subsidiary of the
U.S. Issuer will fully and unconditionally guarantee the Notes jointly and
severally, on a senior subordinated basis. Each existing subsidiary of Jafra
S.A. fully and unconditionally guarantees the Notes jointly and severally, on
a senior subordinated basis, and each subsequently acquired or organized
subsidiary of Jafra S.A. will fully and unconditionally guarantee the Notes
jointly and severally, on a senior subordinated basis. The nonguarantor
entities are the Parent's indirect European subsidiaries in Germany,
Netherlands, Switzerland, Italy and Austria and its indirect South American
subsidiaries in Colombia, Argentina and Venezuela. The Notes are unsecured and
are generally non-callable for five years. Thereafter, the Notes will be
callable at premiums declining to par in the eighth year. Prior to May 1,
2001, the Issuers at their option may concurrently redeem the Notes on a pro
rata basis in an aggregate principal amount equal to up to 35% of the original
aggregate principal amount of the Notes not exceeding the aggregate cash
proceeds of one or more equity offerings, at a redemption price of 111.75%
plus accrued interest. Borrowings under the Term Loan Facility are payable in
quarterly installments of principal and interest over 6 years. Borrowings
under the Revolving Credit Facility mature on April 30, 2004. Borrowings under
the Senior Credit Agreement bear interest at an annual rate of LIBOR plus a
margin not to exceed 2.625% or an alternate base rate (the higher of the prime
rate or federal funds rate plus 1%, plus an applicable margin not to exceed
1.625%). The interest rate at April 30, 1998 was 8.34% per annum. The Company
is in the process of revising its estimate of its acquisition costs. As of
September 30, 1998, the Company had paid approximately $20 million for
acquisition costs, but believes that it has incurred additional fees that have
not yet been billed, which may increase such costs to as much as $24 million.
In addition, the Company expects to pay approximately $7.8 million in interest
in 1998, assuming the interest rate in effect as of September 30, 1998.
The Senior Credit Agreement and the Indenture contain certain covenants
which limit the Company's ability to incur additional indebtedness, pay cash
dividends and make certain other payments. These debt agreements also require
the Company to maintain certain financial ratios including a minimum EBITDA to
cash interest expense coverage ratio and a maximum debt to EBITDA ratio.
Financing activities consist principally of
43
<PAGE>
transactions with affiliates. Transactions with affiliates resulted in net
cash payments of $27.5 million in 1997, net cash receipts of $2.4 million in
1996 and net cash payments of $13.4 million in 1995. Cash flows from financing
activities included $8.5 million of proceeds from the issuance of bank debt in
1997.
Use of cash in 1998 decreased to $0.5 million from $1.4 million in 1997 due
to the effect of changes in exchange rates.
The Company believes that its existing cash, cash flow from operations and
availability under the Senior Credit Agreement will provide sufficient
liquidity to meet the Company's cash requirements over the next twelve months.
EFFECTS OF INFLATION
Mexico has experienced from time to time in the past, including during most
of the 1980s and during 1995 through 1997, periods of high inflation. For
example, during the period 1995 through 1997, Mexican inflation ranged between
35.1% and 21.0%. In 1997, Mexico was classified as a hyperinflationary economy
for financial reporting purposes, and accordingly, the functional currency of
Jafra S.A. was designated as the U.S. dollar. The Company has generally been
able to offset the effects of inflation in Mexico by increasing its product
prices by at least the level of inflation, although there can be no assurance
that the Company will be able to maintain its pricing policy in the future. In
addition, the effects of Mexican inflation have been partially offset in the
Company's U.S. dollar denominated combined financial statements by the effects
of depreciation in the U.S. dollar-Mexican peso exchange rate of 2.4%, 1.8%
and 54.8% in 1997, 1996 and 1995, respectively.
YEAR 2000 ISSUE
Prior to the Acquisition, the Company established a year 2000 compliance
methodology and schedule based on the Gillette model. This methodology
encompassed six phases, namely discovery, planning, resolution, testing,
implementation and certification. The scope of the Company's compliance
program includes information technology (computer systems, hardware and
operating systems), facilities (phone systems, plant machinery, elevators and
security systems), embedded software in production equipment and major
suppliers of raw materials and finished goods. The Company has completed the
discovery and planning phases with respect to both its information technology
systems and non-information technology systems. Approximately 25% of the
systems addressed were found to require some level of remediation or
replacement. The Company is currently in the resolution phase with respect to
such systems in which all affected hardware, software, equipment etc. is being
repaired, upgraded or replaced.
The Company expects to complete the resolution phase for all systems
(information technology and non-information technology) by the end of the
first quarter of 1999. The Company expects to have completed the testing phase
for all systems by the end of the second quarter of 1999 and the
implementation and certification phases by the end of the third quarter of
1999 and has budgeted $1.5 million through 1999 to complete the program. As of
the date hereof, the Company estimates that its resolution and testing phase
for information technology systems is approximately 40% complete. The Company
has upgraded its main operating and financial systems to a Year 2000 compliant
version in Germany, Holland, and Colombia, and expects to have the operating
and financial systems upgraded in Austria by March 1999, Italy by July 1999,
Switzerland by May 1999, Venezuela by June 1999, and Argentina by May 1999.
Due to the nature of the upgrade, once it is complete no testing is required.
The two most important information technology systems that are not Year 2000
compliant are the operating and financial systems that are installed in the
United States and Mexico. The Company is currently upgrading these systems and
expects to have the upgrades completed by June 1999. These upgrades are
currently on schedule.
With respect to its non-information technology systems, the Company
estimates that its resolution and testing phases are virtually complete. Most
non-information technology systems were already Year 2000 compliant, but
several phone systems and one voice mail system required upgrades that are now
completed. The Company has spent approximately $600,000 to date on the
discovery, planning, and resolution phases for both information technology and
non-information technology systems.
Funds for achieving Year 2000 compliance are provided for in the Company's
existing budget, and the Company believes it has sufficient cash, cash flow,
and borrowing availability to meet its cash needs. All costs are being
expensed. The allocation of amounts may change from time to time.
44
<PAGE>
As part of its investigation conducted in the discovery phase, the Company
prepared a questionnaire that it distributed to approximately 106 of its major
suppliers, which supply 75% of the raw materials and finished goods purchased
by the Company from third party suppliers. As of October 26, 1998 the Company
has received written responses from 60 of these suppliers. Of these, 57 have
informed the Company that they do not expect that the dating problems
associated with the year 2000 will have a material adverse effect on their
ability to continue to supply the Company in accordance with past practice.
Based on these replies, the Company does not believe that the inability of any
of the suppliers that have not yet responded or have responded unfavorably to
the Company's request for information, to continue to supply the Company would
have in a material adverse effect on the Company's business, financial
condition or results of operations. The Company intends to seek and identify
alternate sources of supply for the affected raw materials and finished
products in the event it has not received assurance by March 31, 1999 from the
remaining companies that they will be able to supply the Company without
material disruption into the year 2000. The Company currently believes there
are alternative sources for all such materials.
In the event the Company does not complete all phases of its year 2000
compliance program by December 31, 1999, the Company's most likely worst case
scenario would be that it would have to consider outsourcing its customer
service and order processing functions. No assurance can be given that the
Company will be able to outsource these functions or that the Company will not
incur significant additional expense in doing so. In the event the Company
could not outsource these functions, the Company would be unable to process
orders in a timely manner or respond to customer inquiries. This could lead to
a loss of revenue and customer satisfaction, which could have a material
adverse effect on the Company's results of operations, liquidity, and
financial condition. The Company will make a determination no later than the
end of March 1999 as to whether it needs to investigate the possibility of
outsourcing these functions.
In August 1998 the Company's Chief Information Officer left to return to
Gillette. The Company had previously appointed a project manager whose duties
include oversight of the Company's year 2000 compliance program in all of the
Company's markets. The Company does not believe that the departure of the
Chief Information Officer will have a material adverse effect on the Company's
ability timely to achieve year 2000 compliance.
EUROPEAN ECONOMIC AND MONETARY UNION
On January 1, 1999, eleven of the fifteen member countries of the European
Union are scheduled to establish fixed conversion rates between their existing
sovereign currencies and the euro. The participating countries have agreed to
adopt the euro as their common legal currency on that day. The euro will then
trade on currency exchanges and be available for non-cash transactions during
the transition period between January 1, 1999 and January 1, 2002. During this
transition period, the existing currencies are scheduled to remain legal
tender in the participating countries as denominations of the euro and public
and private parties may pay for goods and services using either the euro or
the participating countries' existing currencies.
During the transition period, the Company will continue to utilize the
respective country's existing currency as the functional currency. Use of the
euro by the Company or its consultants is not expected to be significant and
will be converted and recorded in the Company's accounting records in the
existing functional currency.
The Company intends to use the euro as its functional currency as soon as
practicable. The Company does not expect the introduction of the euro to
materially affect its business, financial condition or results of operations.
45
<PAGE>
BUSINESS
GENERAL
Jafra is a direct seller of premium skin and body care products, color
cosmetics, fragrances, nutritional supplements and other personal care
products. Jafra currently operates in ten countries directly and in a number
of additional countries through distributors, although approximately 86% of
the Company's sales in 1997 were in the United States, Mexico and Germany.
Jafra markets its products through a direct selling, multilevel distribution
system comprised of approximately 235,100 self-employed salespersons (known as
"sales representatives"). The Company seeks to provide its sales
representatives attractive and flexible career opportunities selling quality
products at affordable prices. Jafra's sales representatives have the
opportunity to earn significant income and to receive non-financial awards
designed to motivate and recognize individual achievement.
Jafra believes that as a result of the strong infrastructure created to
date, it is well positioned to increase sales and profitability under the
Company's new, focused ownership and management. As more fully set forth
below, this existing infrastructure consists of four primary elements: first,
Jafra's motivated, well-trained and loyal base of sales representatives
through whom the Company reaches its customers; second, the Company's diverse
and high quality product line and its ability to satisfy changing demand
through its "fast follower" product development strategy; third, the Company's
operating infrastructure, including state-of-the-art manufacturing and
distribution facilities; and finally, the geographic diversity of the
Company's sales and operations, which the Company believes will help produce
consistent cash flow and help insulate the Company's financial performance
against changes in individual markets.
OPERATING STRENGTHS
Motivated and Loyal Sales Representative Base. Jafra has built a motivated,
well-trained and loyal direct sales force of approximately 235,100 self-
employed independent sales representatives. The average Jafra sales
representative has been affiliated with the Company for approximately four
years, which the Company believes is among the highest average tenure in the
direct selling industry. The Company offers its sales representatives
attractive opportunities for career development and significant potential for
financial rewards. Jafra sales representatives earn income on their own sales
and can also earn commissions on sales made by the sales representatives they
recruit. In 1997, Jafra sales representatives earned aggregate direct sale
income of over $190 million and total commissions of more than $35 million,
with the highest paid Jafra sales representative earning total compensation of
over $250,000. In addition to such financial benefits, the Company also offers
non-financial rewards, such as international travel, regional and national
conventions and incentive awards, all designed to motivate and recognize
individual achievement. Unlike many of its competitors, the Company requires
little or no start-up costs from new sales representatives, imposes no
inventory maintenance requirements, has low minimum order sizes and provides
retail discounts on all orders. The Company's worldwide sales representative
base grew 5.9% to approximately 220,800 at the end of 1997 from approximately
208,500 at the end of 1996. As of June 30, 1998, the Company's worldwide sales
representative base was 235,100, an increase of 6.5% over December 31, 1997.
Prestige Quality Product Offerings. The Company offers diverse, prestige
quality product lines that it believes appeal to a wide customer base, build
brand equity and product loyalty, and lead to repeat purchases. The Company
positions its products to appeal to middle income, value oriented consumers,
generally pricing below the prestige level. The Company tries to develop
integrated products and actively promotes products that bridge between
categories, thus encouraging multi-product sales and repeat purchases. In
order to meet changing consumer demand, the Company employs a "fast follower"
product development strategy that minimizes research costs and focuses
development efforts on products that have proven successful in the
marketplace. In 1997, approximately 70% of sales resulted from products
introduced in the last five years. The Company estimates that this percentage
will remain the same in 1998.
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<PAGE>
Significant Investment in Operating Infrastructure. Over the last three
years, Jafra has invested approximately $30 million in new infrastructure,
including a customer service and office facility in Mexico, new machinery and
equipment, and upgraded data processing capabilities. The Company's
manufacturing facilities in Westlake Village, California, which produces skin
care products, and in Naucalpan, Mexico, which produces color cosmetics, are
equipped with some of the latest manufacturing technologies. Jafra also has
ten major distribution facilities worldwide and is generally able to fill
orders within four days from the time of receipt with 98% accuracy, a rate
which the Company believes is among the highest in the industry. In addition,
the Company has made significant improvements in sourcing raw materials
locally since 1995, and has recently implemented several programs to
standardize product packaging, including in-house bottle decorating. As a
result of these recent investments and the current strength of the Company's
infrastructure, Jafra expects that it will have relatively low maintenance
capital requirements over the next several years.
Geographic Diversification. The Company currently operates in ten countries
directly and through distributors in a number of additional countries, and
expects to expand its operations to include approximately four additional
countries (primarily in Latin America and Europe) over the next several years.
The Company's most important markets to date have been the United States,
Mexico and Germany, which represented approximately 31%, 43% and 13%,
respectively, of total 1997 sales and 31%, 46% and 10%, respectively, of 1998
sales as of June 30, 1998. See footnote 10 to the combined financial
statements of the Company included elsewhere in this Prospectus. With
significant revenue coming from each of the United States, Latin America and
Europe, the Company believes that it is less vulnerable to adverse economic
developments in any particular market. The Company expects that future growth
in the United States and in new markets will lead to greater diversification
of the sources of revenue.
STRATEGY
The Company's new owners and management intend to build on Jafra's strong
existing infrastructure and to increase the Company's sales and profitability
by refocusing the Company on growing its sales representative base and
productivity in new and existing markets and by leveraging the Company's
comparative strengths. To this end, the Company intends to pursue the
following strategy:
Deploy New Senior Management Team with Significant Direct Selling
Experience. In connection with the Acquisition, Ronald B. Clark joined the
Company as its Chairman and Chief Executive Officer, Gonzalo R. Rubio joined
as its President and Chief Operating Officer, Michael DiGregorio joined as its
President of United States Operations, Eugenio Lopez Barrios joined as its
President of Mexican Operations, Jose Luis Peco joined as its President of
European Operations, Jaime Lopez Guirao joined as its President of Global
Operations and Alan Fearnley joined as its Senior Vice President of Global
Marketing. Messrs. Clark, Rubio, Mason, Guirao and Barrios have purchased
equity in Parent. See "Management." Messrs. Clark, Rubio, DiGregorio, Barrios,
Peco, Guirao and Fearnley have an average of over 20 years of direct selling
industry experience, including various senior management positions with Jafra
competitors Avon and Mary Kay. Jafra's new Chief Executive Officer also served
as the President of Jafra's United States operations from 1985 to 1988, and
Jafra's new Senior Vice President of Global Marketing served in the same
position at Jafra from 1987 to 1995. Jafra believes that this new team will
provide the dynamic leadership required to attract new sales representatives
and management talent, inspire new and existing sales representatives to
greater productivity and execute the Company's new market development
strategy.
Grow Sales Representative Base in Existing Markets. Jafra plans to expand
its sales representative base in existing markets by (i) targeting U.S.
expansion into new geographic areas and demographic groups, (ii) streamlining
the commission structure to provide more rewards to those sales
representatives who actively recruit other sales representatives, (iii)
providing more training in business skills and recruiting techniques to sales
representative managers, and (iv) initiating programs to reactivate former or
inactive sales representatives. Although Jafra operates in all fifty states,
approximately 55% of its 1997 U.S. sales were concentrated in four states
(California, Texas, Illinois and New York) and Puerto Rico. The Company
believes that it has a significant
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<PAGE>
opportunity to expand its distribution reach to include new geographic areas,
particularly in the United States, and demographic segments such as baby
boomers and minority groups.
Increase Sales Representative Productivity. The Company plans to focus on
increasing the productivity, as measured by sales per sales representative, of
its existing sales representatives by (i) expanding the Company's product
lines, (ii) initiating better-targeted marketing activities and (iii)
decreasing lead time on new product introductions. Over the next two years,
the Company plans to expand product offerings to include other complementary
merchandise that would be introduced into specific regions after test
marketing to establish the presence of sufficient demand. The Company believes
that sales representative productivity can also be increased through targeted
marketing efforts to increase brand and product awareness of existing product
lines. The Company intends to provide its sales representatives with increased
product knowledge and financial incentives to sell more products through
greater training, internal "advertising" and promotion. Finally, the Company
intends to adopt a shorter lead time on product development to get new
products to its sales representative base more quickly, decreasing the
Company's current time to market by up to one-third.
Develop New Markets. The Company believes that its existing distribution and
manufacturing capabilities provide a strong platform for Jafra to expand into
new markets. The Company expects that it will be able to implement its new
market development strategy with limited additional capital expenditures and
without diverting focus from the Company's core markets. The Company's new
senior management team has extensive experience and a proven track record in
developing new markets in Latin America and Central and Eastern Europe. The
Company intends to focus its expansion efforts on markets that the Company
believes (i) do not require high start-up costs, such as markets contiguous to
the Company's existing markets, (ii) have proven receptive to direct selling
techniques, (iii) demonstrate promising economic demographics, including
population size, growth of gross domestic product and an expanding middle
class, and (iv) evidence demand for quality cosmetic products.
Once a new target market has been identified, the Company will recruit local
management with demonstrated knowledge of the local market. Operations will
typically begin in one of the larger cities within the target market. The
Company plans to hold seminars conducted by successful sales representatives
and senior managers from existing markets to recruit and train local sales
representatives and to identify potential leaders. In addition, the Company
will use distribution capabilities from appropriate existing operations until
the market is able to support its own distribution capabilities.
Improve Operating Efficiency. The Company's new management team believes
that opportunities exist to improve operating efficiency through cost-cutting,
better inventory management, and streamlining of marketing efforts and product
lines. The Company expects these measures, when fully implemented, to result
in net annual savings of at least $6.2 million. Over the past several years,
the Company has turned its inventory approximately 1.6 times per year. By the
end of 2000, the Company expects to increase inventory turns to approximately
three times per year, consistent with industry norms, which the Company
expects will reduce significantly its future working capital requirements.
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<PAGE>
HISTORY
Jafra was founded in 1956, as a California corporation, by Jan and Frank Day
and acquired by Gillette in 1973. The Company expanded into Latin America in
1977 and into Europe in 1978. During the 24 years that Jafra was owned by
Gillette, its revenues grew at a compound annual rate of 18.5%. Parent
acquired the Jafra Business from Gillette on April 30, 1998.
[GRAPH APPEARS HERE]
Net Sales
1973 3.947
1974 6.181
1975 9.428
1976 12.809
1977 15.502
1978 20.007
1979 28.003
1980 44.989
1981 63.915
1982 73.417
1983 82.615
1984 96.2
1985 111.74
1986 123.251
1987 124.206
1988 136.501
1989 161.198
1990 193.459
1991 225.734
1992 257.53
1993 258.089
1994 263.896
1995 218.431
1996 224.544
1997 229.545
INDUSTRY OVERVIEW
The Direct Selling Industry
The Company operates in the direct selling industry, which involves the
marketing and sale of products to end consumers through an independent,
commission-based sales force. Direct selling does not rely on direct mail,
product advertising or physical retail store locations. Instead, salespersons
demonstrate and sell products to consumers, typically at home or work.
There are two main types of direct selling companies: single-level and
multi-level. Jafra is a multi-level direct selling company. In single-level
companies, independent salespersons purchase products directly from direct
selling companies and earn revenues solely from the resale of such products at
a profit to end users. In multi-level companies, independent salespersons not
only make direct sales to consumers but also recruit other salespersons and
earn commissions based on sales by such recruits and by salespersons recruited
by such original recruits.
Direct selling companies typically utilize one or both of two main direct
selling techniques, person-to-person and party plan. Jafra's sales
representatives use both techniques. Person-to-person sales consist of a
salesperson demonstrating the products on an individual basis and taking
immediate orders. If a customer is not ready to place an order, the
salesperson generally leaves a catalog and follows up with a telephone call or
personal visit. In party plan direct selling, an independent salesperson
demonstrates products to a group of potential customers, one of whom acts as
hostess for the function, generally by allowing the event to take place in her
residence. Again, if a customer is not prepared to place an order, the
salesperson provides a catalog and contacts such customer at a later date.
Based on information supplied by its sales representatives, the Company
estimates that approximately 70% of the Company's 1997 U.S. revenues resulted
from person-to-person sales.
The Cosmetics Industry
The cosmetics and toiletries industry is highly competitive and fragmented.
The Company believes that worldwide over 1,000 companies market over 20,000
brands in a number of major product categories. Brand recognition, product
quality, performance, price, and marketing efforts have substantial influence
on consumers'
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choices among competing products and brands. Products are distributed through
three primary channels: (i) prestige distribution, mainly department stores
and specialty stores, (ii) mass distribution, including drug stores, food
stores and warehouse clubs, and (iii) alternative distribution, such as direct
selling, mail order, salons, direct response television and health stores. The
Company believes that approximately 70% of products reach consumers through
mass distribution channels, while prestige distribution accounts for
approximately 22% and alternative distribution methods for approximately 8%.
Sales within the prestige distribution channel and certain outlets of the
alternative distribution channel are considered demonstrator-assisted and
command a price premium, whereas other sales are considered self-selected.
Generally, advertising, promotion, recommendations from other consumers,
reputation, merchandising and packaging, and the timing and frequency of new
product introduction and line extensions have a significant impact on cosmetic
product buying decisions.
INDEPENDENT SALES FORCE
Jafra's self-employed sales force comprises approximately 235,100 motivated,
independent sales representatives. More seasoned senior sales representatives,
who have experience managing their own sales representative networks, recruit
and train the Company's field level organization. Jafra sells substantially
all of its products directly to its sales representatives. Each sales
representative conducts her Jafra sales operations as a stand-alone business,
purchasing Jafra goods and reselling them to customers, as well as offering
free personal care consultations. The Company's independent sales force
constitutes its primary marketing contact with the general public. Pride of
proprietorship and the drive to earn income create strong incentives for sales
representatives to satisfy customers, increase personal sales and recruit
others to sell Jafra products.
Selling
The primary role of a Jafra sales representative is to sell Jafra products.
Although the majority of the Company's sales occur as a result of person-to-
person sales, the Company also encourages its sales representatives to arrange
sales parties at customers' homes. Sales parties permit a more efficient use
of a sales representative's time, allowing the sales representative to offer
products and cosmetic advice to multiple potential customers at the same time,
and provide a comfortable selling environment in which clients can learn about
skin care and sample the Jafra product line. Such parties also provide an
introduction to potential recruits and the opportunity for referrals to other
potential clients, party hostesses and recruits.
Jafra does not require sales representatives to maintain any inventory. The
Company believes that the inventory requirements of other leading direct
sellers are often onerous to sales representatives. Instead, Jafra sales
representatives can wait to purchase products from the Company until they have
a firm client order to fill. Sales representatives generally personally
deliver orders to their clients within one week of placement of an order. By
delivering products directly to the customer, the Jafra sales representative
creates an additional sales opportunity.
Recruiting
The Company believes that it enjoys a competitive advantage in recruiting
sales representatives due to its lower start-up costs and its policy of
providing retail discounts even on small orders. In addition, the Company does
not burden its sales representatives with inventory maintenance requirements,
a common practice in the direct selling industry. Other major attractions to
prospective recruits include flexible hours, increased disposable income, an
attractive incentive program (including international travel, national and
regional meetings, awards and free products), personal and professional
recognition, social interaction, product discounts and career development
opportunities. The Company also emphasizes its commitment to sales
representatives' personal and professional training, thereby building sales
representatives' management and entrepreneurial skills.
Existing sales representatives recruit new sales representatives. Such
recruitment often occurs at party plan events. To join the Jafra sales force,
a new recruit signs an independent sales representative agreement and
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purchases an inexpensive sales representative kit for approximately thirty
dollars. Worldwide, Jafra's sales representative base grew 6% from 1996 to
1997, to a level of 220,810 as of December 31, 1997. As of June 30, 1998, the
number of the Company's sales representatives had increased to 235,100, an
increase of 6.5% from December 31, 1997. In Mexico, the sales representative
base, which had declined from a peak of 132,542 in 1994, rose 8% from 1996 to
1997, and was 129,062 as of December 31, 1997. The U.S. and German sales
representative bases have been relatively stable since 1994, totaling 53,138
and 13,350, respectively, as of the end of 1997.
Sales Representative Management and Training
To become a manager, a sales representative must sponsor a specified number
of recruits and meet certain minimum sales levels. A manager continues to gain
seniority in the Jafra sales force by meeting the prescribed recruitment and
sales requirements at each level of management. At more senior levels,
managers may have several junior managers who in turn sponsor and manage other
managers and sales representatives. The most successful managers have many
such downline managers and sales representatives. The following chart
illustrates the various levels of sales representative management in the
United States, Mexico and Germany:
<TABLE>
<CAPTION>
PERCENTAGE OF AVERAGE NUMBER OF
TITLE* DESCRIPTION TOTAL SALES FORCE YEARS WITH JAFRA
------ ----------- ----------------- -----------------
<C> <S> <C> <C>
Sales represen- An independent salesperson who has 94.0% 4.0
tative purchased a sales case and earns a
percentage on every product sale.
Manager A sales representative who has recruited a 3.7 7.4
specified number of new sales
representatives and sold required minimum
dollar amounts, and has signed a manager's
contract. She earns a percentage on her
personal sales plus commissions on the
sales of her downline sales
representatives.
District Manager A manager who has promoted between 1 and 3 1.9 10.1
(Levels I-III) sales representatives to manager from her
downline group. She earns a percentage on
her personal sales plus commissions on her
downline group's sales.
District Direc- A district manager who has promoted at 0.4 14.3
tor least 5 sales representatives to manager
(Levels I-V) from her downline group. She earns a
percentage on her personal sales plus
commissions on her downline group's sales.
</TABLE>
- --------
* The titles of sales representative managers vary by country.
Managers progress to higher levels of management by growing their downline
sales representative networks. At the same time, managers' earnings increase,
as they become entitled to commissions on sales by an increasing number of
downline sales representatives. This is a powerful incentive for managers to
maintain a well-trained and enthusiastic base of downline sales
representatives.
Training for new sales representatives focuses first on the personalized
selling of the Jafra product line, beginning with skin care and the
administration of a Jafra business. Training is conducted primarily by the
Company's sales representative managers. Managers train their downline sales
representatives at monthly meetings using materials prepared by the Company.
In training managers, the Company seeks to improve leadership and management
skills, while teaching managers to motivate downline sales representatives to
higher sales levels. The Company also teaches its managers and more
experienced sales representatives techniques for recruiting their own downline
sales representative bases. A large part of sales representative and manager
training occurs at the Company's semi-annual national conventions.
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Income Opportunities and Recognition
Sales representatives earn income by purchasing products from Jafra at
retail discounts and selling to consumers at suggested retail prices. Once a
sales representative becomes a manager, her compensation also includes
commissions on the wholesale value of paid sales made by herself and her
recruits. Commissions vary among markets. Jafra pays commissions directly to
managers on receipt of payment for the underlying product sale. While this
commission-based incentive system diminishes the Company's profit margin on
individual product sales, it results in increased numbers of sales
representatives selling Jafra products, which ultimately earns greater profits
for the Company.
The Company believes that public recognition of sales accomplishments serves
the dual purpose of identifying successful role models and boosting sales
representative morale. Each year Jafra sponsors major events in each of its
national markets to recognize and reward sales and recruiting achievements and
strengthen the bond between the independent sales force and the Company. Sales
representatives and managers must meet certain minimum levels of sales and new
sales representative sponsorship in order to receive invitations to attend
these events.
PRODUCTS
Jafra continuously introduces new products based on changes in consumer
demand and technological advances in order to enhance the quality, image and
price positioning of its products. Research and development activities occur
at the Jafra Skin, Body and Color Laboratory, located in the Westlake Village
facility. Twenty employees in the Research and Development Department
formulate products and analyze them for chemical purity and microbial
integrity. A separate pilot plant allows testing via small batch production
prior to full scale manufacture. Since 1993, Jafra has invested in the
globalization and upgrading of its product lines. Packaging and formulations
have been updated to build better brand awareness and a fresh image, and
contemporary fragrances have been added to the product line. Through
globalized product development, manufacturing and packaging, Jafra believes
that it has enhanced the consistency and quality of its products in all
geographic regions and across all product lines. Seventy percent of 1997
revenues derived from products introduced over the last five years, and the
Company expects this number to remain the same in 1998.
Certain of Jafra's products are based on formulas or include ingredients or
components that have been developed by Gillette. In addition, certain of
Jafra's products are manufactured at facilities owned by Gillette. The
Transition Services Agreement allows Jafra to continue using proprietary
Gillette formulas and materials in its products and provides that Gillette
will continue to provide manufacturing services until December 31, 1998.
The following table sets forth the sales of the Company's principal product
lines for fiscal 1997:
<TABLE>
<CAPTION>
SALES BY
PRODUCT LINE PERCENTAGE OF
$ (IN MILLIONS) TOTAL SALES
--------------- -------------
<S> <C> <C>
Color Cosmetics................................... $ 66.9 29.1%
Skin Care......................................... 57.8 25.2
Body Care & Daily Use............................. 43.4 18.9
Fragrances........................................ 37.3 16.3
Other(1).......................................... 24.1 10.5
------ -----
Total........................................... $229.5 100.0%
====== =====
</TABLE>
- --------
(1) Includes sales aids (party hostess gifts, demonstration products, etc.)
and promotional materials.
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<PAGE>
Color
Jafra's range of color cosmetics for the face, eyes, lips, cheeks and nails
contribute significantly to Company results. The Company develops internally
its lipstick formulas, foundations and mascaras. During 1996, Jafra introduced
an enhanced "global palette" of colors. This replacement product line features
an expanded palette of colors, improved quality and upgraded packaging. In
1997, Jafra launched its Always Color lipstick line, which competes with
products featuring the latest technology in long-wearing, transfer-resistant
formulas and has helped to revitalize the color line. Time Protector
lipsticks, launching in early 1998, feature contemporary colors with skin care
benefits, including sunscreen and antioxidants, as well as moisturizers and
conditioners.
Skin Care
Jafra sells skin care regimens tailored to five specific skin types. Each
regimen includes cleanser, mask, skin freshener and moisturizers for day and
night. In addition to basic skin care products, Jafra offers a range of
special care products for special needs, including its premier product, Royal
Jelly Milk Balm Moisture Lotion, an Alpha Hydroxy complex (Rediscover) and
products for maturing skin (Advanced Time Protector and Time Corrector), eye
care (Optimeyes) and extra firming (Skin Firming Complex).
Body Care and Daily Use
Jafra markets a broad selection of body, bath, sun and personal care
products. Jafra's premier body care product, Royal Jelly Body Complex,
contains "royal jelly" (a substance produced by queen bees) in an oil-free
deep moisturizing formula with natural botanical extracts and vitamins. Other
offerings in the body care line include sunscreens, hand care lotions,
contouring creams, revitalizing sprays, bath products, as well as an aroma
therapy brand, Aromascape. A children's product line featuring animal
characters was launched in 1997 and two sunless tanning lotions were launched
in early 1998.
Jafra's daily use products include deodorant, shampoo and nutritional
supplements. Jafra strengthened this category in 1997 with the launch of the
Daily Essentials line, which includes a conditioning body wash, a conditioning
body lotion with Alpha Hydroxy action, a body lotion for sensitive skin, a
multi-vitamin and a ginseng complex. Consumers use these products in regular
cycles, allowing more frequent contact with sales representatives and their
catalogs of Jafra products.
Fragrance
Direct selling is a significant distribution channel for fragrances, and
Jafra's new scents have enabled the Company to participate on a larger scale,
as evidenced by the double-digit growth in sales over the last two years. In
1996, Jafra introduced Adorisse, a contemporary women's fragrance, and Fm
Force Magnetique, a prestige men's fragrance. Jafra further extended its
fragrance line in 1997 with Le Moire for women and Legend for Men. The
fragrance category includes line extensions such as body lotions, shower gels,
deodorants, after-shave lotions and shave creams for some of the most popular
fragrances.
MARKETING
Strategy
The Company's marketing vision is to provide glamour, excitement and variety
through prestige quality products at affordable prices. The Company's product
strategy and marketing and sales efforts reinforce this vision with its sales
representatives and their customers. The Company believes that this approach
builds brand equity that leads to product loyalty.
Jafra positions its products to appeal to a relatively wide range of market
categories, demographic groups and lifestyles. Jafra products generally price
at the higher end of the mass market category but slightly below prestige
brands such as Clinique. As compared to its direct selling competitors, Jafra
prices in line with Mary Kay, but higher than Avon, which targets the lower to
middle mass market.
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Jafra targets middle income, value-oriented consumers who seek a fresh,
diverse and quality product line. The Jafra consumer enjoys the personal
attention of prestige product cosmetic counters in department stores but is
not inclined to pay their premium prices. The Jafra consumer also likes the
convenience, flexibility and low-key atmosphere of shopping at home, the
personalized recommendations of her sales representative and the try-before-
you-buy sales policy of the Company. The Company believes that consumers are
very loyal to the Jafra brand.
Product Strategy
Jafra's product strategy is to provide customers with exciting and prestige
quality product lines that fit into Jafra's value-added demonstration sales
techniques and promote the sale of multiple products per home visit. To that
end, Jafra develops integrated products and actively promotes cross-selling
among categories.
Product variety and modernization are keys to the Company's success. Seventy
percent of 1997 revenues derived from products introduced over the last five
years, and the Company expects this number to remain the same in 1998. To
seize upon new product trends, the Company employs a "fast follower" product
strategy which focuses the Company's development efforts on products that have
proven successful in the marketplace. For example, Color Stay Lipstick, a
transfer-resistant lipstick introduced by Revlon, has galvanized entire
product lines using the popular long-wearing "volatile" technology. Other
companies, including Jafra, quickly introduced their own successful "volatile"
lipsticks and color products. Jafra's version, Always Color, generated $5.2
million in sales in the first year of introduction. Jafra currently has
approximately 20 products in development and has launched or expects to launch
32 products in 1998. Over the past several years, the Company has turned its
inventory approximately 1.6 times per year. By the end of 2000, the Company
expects to increase inventory turns to approximately three times per year,
consistent with industry norms, which the Company expects will reduce
significantly its future working capital requirements.
Jafra has also recently expanded its offerings of nutritional supplements
and body washes, which are used in regular cycles and present sales
representatives with opportunities for more frequent contact with customers,
thereby increasing opportunities to market other Jafra products. In addition,
Jafra has introduced products to expand into other profitable categories,
targeting the mature market, upper income consumers and children. Sales of
these products have been successful, with Time Corrector and Advanced Time
Protector alone generating $3.5 million in sales in the first four months of
launch.
Marketing Material & Support
The Company generally does not advertise, relying instead on its energetic
network of sales representatives and favorable word-of-mouth that the Company
believes its products generate. The Company's marketing expenses are far below
those of its retail competitors. In 1997, Jafra's marketing expenses were $25
million, or 10.8% of net sales (excluding commissions paid to sales
representatives).
Sales representative kits, filled with products and colorful promotional
materials, play a crucial role in sales support. In their own homes, Jafra
consumers try Jafra products from these kits and get immediate feedback from
their personal sales representatives and friends before deciding whether to
commit to a purchase. This combination of sampling and positive reinforcement
is what the Company believes provides the stimulus for most of its sales
representatives' sales. Sales representatives and managers also purchase from
the Company various printed, video and audio materials for distribution to
customers and for use by managers with their sales representative networks.
Customer materials announce special promotions and sales, introduce new
products and generally keep customers informed of exciting product
developments. Finally, managers and sales representatives receive from the
Company fliers and newsletters intended to generate excitement, recognize top
sellers and reinforce a sense of belonging to the Jafra "family."
MANUFACTURING
Over the last three years, Jafra has invested approximately $30 million in
new infrastructure, including a customer service center and office facility in
Mexico, new machinery and equipment and upgraded data
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<PAGE>
processing capabilities. Consistent with Jafra's globalization strategy, the
Company recently consolidated its manufacturing operations, instituting a new
planning and procurement strategy and unifying the sourcing of products on a
worldwide basis. In addition, the Company has instituted uniform worldwide
packaging on most of its product lines.
The Company has also revamped its approach to product development,
accelerating its new product development cycle and forging additional research
and development alliances with third-party manufacturers and vendors of raw
materials. In the near term, Jafra will continue to outsource pressed powder
godets, liner pencils, liquid eyeliners and nail lacquers. New products may
increasingly be manufactured by third parties or be licensed formulations.
Jafra's manufacturing facilities are located in Westlake Village, California
and Naucalpan, Mexico, which is near Mexico City. Skin care products are
produced at the Westlake Village facility and color cosmetics and most
fragrances are produced at the Mexico facility. The manufacturing process at
the Westlake Village facility involves mixing, filling and in-house decoration
processes using product ingredients, plastic bottles, glass bottles, tubes and
caps. Jafra implemented a move to in-house color manufacturing beginning in
1993, and currently produces the majority of its color cosmetics in the Mexico
facility. During 1995, Jafra transitioned from a manual lipstick production
process to highly sophisticated automation in support of the global palette
launch. In Mexico, pursuant to the Transition Services Agreement, a Gillette
affiliate will continue to be responsible for Jafra's manufacturing processes
until December 31, 1998. Thereafter, the Company will hire the Gillette
employees involved in the manufacture of Jafra's products and assume
responsibility for the manufacture of products at its Mexico facility. See
"The Transactions--Transition Services Agreement."
The Company purchases from third party suppliers certain finished goods and
raw materials for use in its manufacturing operations. In general, the Company
does not have written contracts with suppliers. Finished goods and raw
materials used in the Company's products generally are available stock items
or can be obtained to Company specifications from more than one potential
supplier. At the Closing, the Company entered into an agreement with Gillette
relating to the continued use by the Company of certain proprietary Gillette
formulas and materials.
DISTRIBUTION
The Company has ten principal distribution centers around the world. The
U.S. warehouses in Bridgeport, New Jersey and Westlake Village, California,
currently stock the entire Jafra product line. Management believes that these
facilities are adequate to meet domestic demand for the foreseeable future. In
Europe, the Company is in the process of pursuing alternatives to in-house
distribution facilities in Switzerland and Italy and may eventually combine
certain distribution operations into a central warehouse in Germany or enter
into agreements with third parties for these services. In Mexico, the Company
has outsourced some of its distribution needs to third parties, which has
enabled the Company to reduce inventories.
Typically, owned or leased distribution centers are located in an area that
allows for direct delivery to sales representatives by either post or carrier.
Maintaining a short delivery cycle in direct selling is an important
competitive advantage. The Company delivers 98% of its products within four
days of placement of an order at a packing accuracy rate of approximately 98%.
COMPETITION
Jafra sells all of its products in highly competitive markets. The principal
bases of competition in the cosmetics direct selling industry are price,
quality and range of product offerings. On the basis of information available
to it from industry sources, management believes that there are over a
thousand companies (including both direct sales and cosmetic manufacturing
companies) that sell products that compete with Jafra's products. Several
direct sales companies compete with Jafra in sales of cosmetic products, and
at least two such competitors, Mary Kay Corporation and Avon Products, Inc.,
are substantially larger than Jafra in terms of total
55
<PAGE>
independent salespersons, sales volume and resources. In addition, Jafra's
products compete with cosmetics and toiletry items manufactured by cosmetic
companies that sell their products in retail or department stores. Several of
such competitors are substantially larger than Jafra in terms of sales and
have substantially more resources. Jafra also faces competition in recruiting
independent salespersons from other direct selling organizations whose product
lines may or may not compete with Jafra's products.
PATENTS AND TRADEMARKS
Jafra's operations do not depend to any significant extent upon any single
trademark other than the Jafra trademark. Some of the trademarks used by
Jafra, however, are identified with and important to the sale of Jafra's
products. Jafra's most important trademarks are: Adorisse (a contemporary
woman's fragrance), Eau D'Aromes (revitalizing fragrance spray), Fm Force
Magnetique (a men's prestige fragrance), Legend for Men (a men's premium
fragrance), Le Moire (a contemporary woman's fragrance), Optimascara
(mascara), Optimeyes (eye treatment lotion), Rediscover (skin cream with Alpha
Hydroxy), Royal Jelly Body Complex (body lotion), Royal Jelly Milk Balm
Moisture Lotion (moisturizing lotion), Time Corrector (skin cream) and Time
Protector (skin cream). Jafra's operations do not depend to any significant
extent on any single or related group of patents, although the Company has
applied for or received patent protection in its major markets for certain
dispensers and product containers, nor do they rely upon any single or related
group of licenses, franchises or concessions. Jafra has in the past licensed
know-how from Gillette relating to the design, development and manufacture of
its products. Jafra can continue to use such know-how in connection with its
products, although management expects to replace Gillette as a provider of
certain standard-setting and testing services.
A former employee of Gillette has applied to register, and, as of January
1998, had received registrations for the Jafra trademark in Algeria, China,
Cyprus, Malawi, Morocco, Surinam, Tanzania, Tunisia, and Zambia, jurisdictions
in which the Company does not currently operate. Gillette has obtained a court
order prohibiting this employee from transferring or licensing such trademark
applications and registrations and requiring that the trademark applications
and registrations be assigned to Gillette. If Gillette is not successful in
obtaining such assignments or does not transfer these applications and
registrations to Jafra, Jafra may be prohibited from distributing its products
in such jurisdictions, or may face significant costs in establishing its right
to do so.
PROPERTIES
The Company is headquartered in Westlake Village, California, 40 miles north
of Los Angeles. Manufacturing is done on a global basis and by product line in
two key locations, Westlake Village and Naucalpan, Mexico. The Company
maintains 10 major distribution facilities and 15 sales offices and service
centers. The following table sets forth the Company's principal properties by
location, type of facility, square footage and ownership interest:
<TABLE>
<CAPTION>
SQUARE
COUNTRY CITY FUNCTION FOOTAGE TITLE
- ------- ---- -------- ------- -----
<S> <C> <C> <C> <C>
U.S.............. Westlake Village Office/Manufacturing 148,500(1) Owned
Bridgeport Warehouse 25,100 Leased
Mexico........... Mexico City Office 80,000 Owned
Naucalpan Manufacturing 99,000 Owned/Leased
Germany.......... Munich Office 19,500 Leased
Kaufbeuren Office/Warehouse 32,100 Leased
Italy............ Milan Office 7,100 Leased
Rovellasca Warehouse 18,200 Leased
Switzerland...... Cham Office/Warehouse 6,400 Leased(2)
Venezuela........ Caracas Office/Warehouse 37,700 Leased
Colombia......... Bogota Office/Warehouse 13,700 Leased
</TABLE>
- --------
(1) Two buildings.
(2) Operation to be merged into German facility.
56
<PAGE>
Until December 31, 1998, a Gillette affiliate will provide manufacturing
services to Jafra at Jafra's Mexico manufacturing plant, using the
manufacturing equipment owned by Jafra. See "The Transactions--Transition
Services Agreement."
MANAGEMENT INFORMATION SYSTEMS
Historically, each marketing region within Jafra handled its own computing
systems, staffing and development, leading to the development of disparate
functionality and standards. In early 1995, management formulated and began to
implement a plan to replace the commercial systems that handle order entry,
commissions and accounts receivable, among other functions, at all existing
Jafra companies, other than in the United States, with the commercial system
developed in Mexico. The Company expects to complete this project and have a
year 2000 compliant version of the Mexican commercial system installed at all
Jafra companies, other than in the United States, in mid-1999. The Westlake
Village facility will continue to use an older commercial system that is not
currently year 2000 compliant but which will be modified to be year 2000
compliant by mid-1999. The Company has budgeted $1.5 million through 1999 to
modify or replace its business critical information systems so as to be year
2000 compliant prior to December 31, 1999. See "Risk Factors--Year 2000
Issue."
Jafra currently uses software licensed through Gillette enterprise-wide
software licenses that provide certain price advantages to Gillette
subsidiaries. Jafra and Gillette have negotiated Jafra's continued ability to
use this software after the Closing and the additional costs relating to
continued use of this software are not material to the Company's financial
position or results of operations. Gillette will allow Jafra to continue using
certain internally developed Gillette software and has obtained the right for
Jafra to continue using certain other licensed software for varying periods
(which in most cases can be renewed at the option of Jafra) in return for the
payment of monthly fees. On or before termination of the Transition Services
Agreement, Jafra will also have to replace certain Gillette software and
obtain licenses to the additional licensed software. See "The Transactions --
Transition Services Agreement."
EMPLOYEES
As of December 31, 1997, the Company had 851 full-time employees, of which
250 were in manufacturing, warehousing, distribution and technical operations,
408 were in sales and marketing, 148 were in administration and 45 were part
of the corporate staff. The Company also had 40 outside contract employees.
ENVIRONMENT
The Company is subject to various federal, state, local and foreign laws or
regulations governing environmental, health and safety matters. The Company
believes that it is in material compliance with all such laws and regulations
and under present conditions the Company does not foresee that such laws and
regulations will have a material adverse effect on capital expenditures,
earnings or the competitive position of the Company.
LEGAL PROCEEDINGS
The Company is involved from time to time in routine legal matters
incidental to its business. The Company believes that the resolution of such
matters will not have a material adverse effect on the Company's business,
financial condition or results of operation.
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<PAGE>
MANAGEMENT
The executive officers and directors of the Company are listed below. The
business address for each executive officer is as follows: Jafra Cosmetics
International, Inc., 2451 Townsgate Road, Westlake Village, California 91361.
<TABLE>
<CAPTION>
NAME AGE
---- ---
<S> <C> <C>
Ronald B. Clark......... 62 Chairman and Chief Executive Officer; Director
Gonzalo R. Rubio........ 54 President and Chief Operating Officer; Director
Ralph S. Mason, III..... 46 Vice Chairman, Executive Vice President and General Counsel
James Brill............. 47 Chief Financial Officer
Michael DiGregorio...... 43 President of United States Operations
Eugenio Lopez Barrios... 54 President of Mexican Operations
Jose Luis Peco.......... 53 President of European Operations
Jaime Lopez Guirao...... 50 President of Global Operations
Alan Fearnley........... 48 Senior Vice President of Global Marketing
Donald J. Gogel......... 49 Director
Steven D. Goldstein..... 46 Director
Thomas E. Ireland....... 49 Director
David A. Novak.......... 29 Director
Paul Orfalea............ 50 Director
Ann Reese............... 45 Director
Edward H. Rensi......... 54 Director
Christopher Sinclair.... 48 Director
Kenneth D. Taylor....... 64 Director
</TABLE>
Ronald B. Clark currently serves as a director and the Chairman and Chief
Executive Officer of the Company. Mr. Clark served from 1996 to 1997 as
President, Richmont Europe (Mary Kay Holding Company). From 1992 to 1995, he
was President of Mary Kay Europe. Prior to that, he served as Executive Vice
President of Primerica Corp., President of Jafra Cosmetics International,
Inc., and Vice President of Avon Products, Inc.
Gonzalo R. Rubio currently serves as a director and the President and Chief
Operating Officer of the Company. Mr. Rubio served from 1992 to 1997 as Area
Vice President and later President of the European operations of Mary Kay Inc.
and was employed by Avon Products Inc. from 1970 to 1992, serving alternately
as Area Director for Europe, International Operations Director and Area
Director for Latin America.
Ralph S. Mason, III serves as the Vice Chairman, Executive Vice President
and General Counsel of the Company. For more than the prior five years, Mr.
Mason was the senior and founding partner at Mason, Taylor & Colicchio, a law
firm in Princeton, New Jersey.
James Brill serves as Chief Financial Officer of the Company. From 1996 to
1998, Mr. Brill served as Vice President, Finance and Administration and Chief
Financial Officer of Vertel Corporation. From 1988 to 1996, Mr. Brill was
employed by Merisel, Inc., serving as Senior Vice President, Finance, Chief
Financial Officer, and a Director.
Michael DiGregorio currently serves as President of United States Operations
of the Company. From 1993 to 1998, Mr. DiGregorio served as Vice President,
Treasurer and Chief Financial Officer of Atlantis Plastics, Inc. From 1989 to
1993, Mr. DiGregorio was employed by The Wackenhut Corporation, serving most
recently as Senior Vice President, Finance and Chief Financial Officer.
Eugenio Lopez Barrios currently serves as President of Mexican Operations of
the Company. From 1993 to 1998, Mr. Barrios was President of Mary Kay Mexico.
Prior to that, Mr. Barrios was employed by Avon Products, Inc. for over 30
years, where he oversaw Operations in Mexico, South America and Central
America.
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<PAGE>
Jose Luis Peco currently serves as President of European Operations of the
Company. From 1994 to 1998, Mr. Peco served as Vice President of Europe
Operations for Mary Kay Cosmetics and President of Mary Kay Cosmetics--Iberia.
Prior to that, Mr. Peco served as Controller and Financial Director for
various European Operations for Avon Products, Inc. for over 20 years.
Jaime Lopez Guirao serves as President, Global Operations. For more than the
prior five years, Mr. Guirao was employed by Avon Products, Inc., holding
several operational, management and Country President positions in Europe and
the Americas.
Alan Fearnley currently serves as Senior Vice President of Global Marketing
of the Company. For the past year, Mr. Fearnley served as Vice President of
Marketing for Dermatologica. Prior to that, Mr. Fearnley took a year's
sabbatical to attend the Sloan Fellowship Masters Program at the London
Business School. During this sabbatical, Mr. Fearnley also served as
consultant to various companies. From 1987 to 1995, Mr. Fearnley served as
Senior Vice President of Global Marketing of Jafra.
Donald J. Gogel has been a director of the Company since January 1998. Mr.
Gogel has served as President and a director of CD&R since 1995 and, since
1989, has been a principal of CD&R. Mr. Gogel is also a limited partner of
CD&R Associates V Limited Partnership ("Associates V"), the general partner of
CD&R Fund V, and President and a director of CD&R Investment Associates II,
Inc. ("Investment Associates II"), a Cayman Islands exempted company that is
the managing general partner of Associates V. Mr. Gogel is a director of
Kinko's, Inc., a corporation in which Fund V has an investment, APS Holding
Corporation, a corporation in which an investment fund managed by CD&R has an
investment, and Turbochef, Inc. Mr. Gogel's business address is 375 Park
Avenue, New York, New York 10152.
Steven D. Goldstein has been a director of the Company since July 1998 and
is the Chairman and Chief Executive Officer of Invenet, LLC. Prior to joining
Invenet, LLC, Mr. Goldstein was employed as President, Credit of Sears,
Roebuck & Co. From 1982 to 1996, Mr. Goldstein was employed by American
Express Co., serving as the Chairman and Chief Executive Officer of American
Express Bank.
Thomas E. Ireland has been a director of the Company since March 1998 and is
a principal of CD&R, a limited partner of Associates V and a shareholder of
Investment Associates II. Prior to joining CD&R in 1997, Mr. Ireland served as
a senior managing director of Alvarez & Marsal, Inc. Prior to joining Alvarez
& Marsal in 1988, Mr. Ireland served as a managing director of Magten Asset
Management, a registered investment advisor, and was a vice president of
Citibank, N.A. Mr. Ireland also serves on the board of directors of the Maine
Coast Heritage Trust. Mr. Ireland's business address is 375 Park Avenue, New
York, New York 10152.
David A. Novak has been a director of the Company since January 1998, and is
a professional employee of CD&R and a limited partner of Associates V. Prior
to joining CD&R in 1997, Mr. Novak worked in the Merchant Banking and
Investment Banking Divisions of Morgan Stanley & Co. Incorporated and for the
Central European Development Corporation. Mr. Novak's business address is 375
Park Avenue, New York, New York 10152.
Paul Orfalea has been a director of the Company since July 1998 and is the
founder of the Kinko's chain. For more than the prior five years, Mr. Orfalea
has been employed by Kinko's, Inc., serving as its Chairperson. Mr. Orfalea is
also a director of DataProse, Inc., Espresso Caffe Corp., Glendale Federal
Bank and Kinko's, Inc.
Ann Reese has been a director of the Company since July 1998. From 1992
until March 1998, Ms. Reese was employed by ITT Corporation, serving most
recently as Chief Financial Officer.
Edward H. Rensi has been a director of the Company since July 1998. For more
than the prior five years, Mr. Rensi has been employed by McDonalds USA,
serving most recently as President and Chief Executive Officer. Mr. Rensi also
serves as a director of Snap-On Inc. and I.S.C. Corporation, and serves as a
member of the compensation committee of the board of directors of Snap-On Inc.
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<PAGE>
Christopher A. Sinclair has been a director of the Company since July 1998
and is the President and Chief Executive Officer of Cutter Capital LLC. Prior
to that, Mr. Sinclair served from 1996 to 1998 as the President and Chief
Executive Officer of Quality Food Inc. From 1984 to 1996, Mr. Sinclair was
employed by Pepsico, Inc., serving most recently as the Chairman and Chief
Executive Officer of Pepsi-Cola Company. Mr. Sinclair also serves as a
director of Mattel, Inc., Perdue Farms, Inc. Venator Group (Woolworth) and
Grupo Azucarero de Mexico S.A. de C.V.
Kenneth D. Taylor has been a director of the Company since July 1998 and has
been the Chairman of Global Public Affairs, Inc. since October 1994. From 1991
to 1994, Mr. Taylor served as the Chairman of Taylor & Ryan, Inc.
EMPLOYMENT AGREEMENTS
Effective as of the Closing, the Company entered into employment agreements
with Messrs. Clark, Rubio and Mason and the Company has since entered into
employment agreements with each of Messrs. Guirao and Barrios (together with
Messrs. Clark, Rubio and Mason, the "Senior Executive Officers"). The
employment agreements of Messrs. Clark, Rubio and Mason have an initial term
of three years that becomes a continuous "rolling" two year term as of the
first anniversary of the Closing. The employment agreements of Messrs. Guirao
and Barrios have a continuous "rolling" term of two years, commencing as of
the Closing. Pursuant to their respective agreements, Messrs. Clark, Rubio,
Mason, Guirao and Barrios receive annual base salaries of $600,000, $500,000,
$450,000, $450,000 and $400,000, respectively. In addition, each of Messrs.
Clark, Rubio, Mason, Guirao and Barrios is eligible for a target annual bonus
equal to 60% of such Senior Executive Officer's annual base salary if the
Company achieves the performance goals established under its annual incentive
plan for executives and may receive a larger bonus if such goals are exceeded.
The employment agreements further provide that, in the event of a termination
of any such Senior Executive Officer's employment by the Company without
"cause" or by such executive for "good reason" (as defined below), such Senior
Executive Officer will be entitled to continued payments of his base salary
for the remaining term of his employment agreement and for payment of a pro
rata annual bonus for the year of termination provided that the Company
achieves the performance objectives applicable for such year. Under such
employment agreements, "Cause" means (i) the willful failure of the executive
substantially to perform his duties under the agreement (other than any such
failure due to the executive's physical or mental illness), (ii) the
executive's engaging in willful and serious misconduct that has caused or is
reasonably expected to result in material injury to employer or any of its
affiliates, (iii) the executive's conviction of, or entering a plea of guilty
or nolo contendere to, a crime that constitutes a felony or (iv) the willful
and material breach by the executive of any of his obligations hereunder or
under any other written agreement or covenant with employer or any of its
affiliates. "Without Cause" means a termination of the executive's employment
by employer other than due to Disability (as defined in the agreement) or for
Cause. Under the employment agreements, "Good Reason" generally means a
termination by the executive of his employment following the occurrence,
without the executive's consent, of any of the following events: (i) the
assignment to the executive of duties that are significantly different from,
and that result in a substantial diminution of, the duties that he was to
assume upon the closing of the Acquisition; (ii) the assignment to the
executive of a title that is different from and junior to the title specified
in the employment agreement; or (iii) the failure of the employer to obtain
the assumption of the employment agreement by any Successor (as defined in the
employment agreements) to the employer as contemplated by the employment
agreements. Each of the employment agreements also contains covenants
regarding nondisclosure of confidential information, noncompetition and
nonsolicitation.
CERTAIN INCENTIVE ARRANGEMENTS
The Company has adopted a stock incentive plan (the "Stock Incentive Plan")
providing for the sale to members of senior management (including each Senior
Executive Officer) of up to 52,141 shares of Common Stock of Parent
(representing approximately 6.2% of the Common Stock outstanding or reserved
for issuance at the close of the September 1998 offering of shares of Common
Stock to certain members of management and
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<PAGE>
the issuance of options to purchase up to 104,282 additional shares of Common
Stock (which in total represents 16.5% of the fully diluted Common Stock of
Parent outstanding or reserved for issuance at the close of such offering)
under such plan. At the Closing of the Transactions, Messrs. Clarke, Rubio and
Mason purchased 7,733, 6,800 and 5,370 shares of Common Stock of Parent,
respectively, pursuant to the Stock Incentive Plan and, on September 30, 1998,
Messrs. Clark, Rubio, Mason, Guirao and, Barrios purchased 1,431, 2,364,
1,898, 3,000 and 3,476 shares of Common Stock of Parent, respectively,
pursuant to the Stock Incentive Plan. The purchase price paid by the Senior
Executive Officers is $100 per share, which represents the fair market value
of each share of Common Stock based on the aggregate equity value of Parent
upon the consummation of the Acquisition. A portion of the cash purchase price
paid by each such Senior Executive Officer for such shares of Common Stock was
financed by loans from Chase Manhattan Bank on market terms. To help such
executives obtain such terms for such financing, the Company guaranteed up to
75% of the purchase price for the shares of Parent Common Stock purchased by
each such Senior Executive Officer.
In connection with his purchase of shares of Common Stock of Parent, at the
September closing of such purchases, each Senior Executive Officer was granted
options to purchase two additional shares of Parent Common Stock for each
share purchased by such Senior Executive Officer. The exercise price for all
of shares covered by such options was $100 per share, which represents the
fair market value of each share of Common Stock based on the aggregate equity
value of Parent upon the consummation of the Acquisition. Options covering
one-half of the shares of Parent Common Stock are expected to become vested in
three equal annual installments on the first three anniversaries of the date
of grant, subject to the Senior Executive Officer's continued employment. The
remaining options covering 50% of the shares are expected to become vested if,
and to the extent, the Company achieves certain annual and/or cumulative
EBITDA targets specified in the agreements pursuant to which such options are
expected to be granted or, regardless of whether such targets are achieved, on
the ninth year anniversary of such Senior Executive Officer's employment if
such Senior Executive Officer is employed by the Company on such date.
In addition, certain directors and other persons purchased an aggregate of
21,000 shares of Common Stock, representing approximately 2.49% of the Common
Stock of Parent outstanding or reserved for issuance as of the September 30,
1998 closing of such purchases.
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<PAGE>
OWNERSHIP OF CAPITAL STOCK
Parent owns, indirectly, all of the outstanding capital stock of the U.S.
Issuer and Jafra S.A. The table below sets forth the owners of 5% or more of
the Parent Common Stock and the ownership of Parent Common Stock by the
directors and executive officers of the Company as a group.
<TABLE>
<CAPTION>
NUMBER OF PERCENT
NAME SHARES OF CLASS
- ---- --------- --------
<S> <C> <C>
Clayton, Dubilier & Rice Fund V Limited Partnership (1)..... 769,600 92.73
Steven D. Goldstein......................................... 2,000 *
Paul Orfalea................................................ 2,500 *
Ann Reese................................................... 2,500 *
Edward H. Rensi............................................. 2,500 *
Christopher Sinclair........................................ 2,500 *
Kenneth D. Taylor........................................... 500 *
Ronald B. Clark............................................. 9,164 1.10
Gonzalo R. Rubio............................................ 9,164 1.10
Ralph S. Mason, III......................................... 7,268 *
Jaime Lopez Guirao.......................................... 3,000 *
Eugenio Lopez Barrios....................................... 3,476 *
All directors and executive officers as a group (15 persons)
(2)........................................................ 50,550 6.09
</TABLE>
- --------
(1) Associates V is the general partner of CD&R Fund V, and has the power to
direct CD&R Fund V as to the voting and disposition of shares held by CD&R
Fund V. Investment Associates II is the managing general partner of
Associates V and has the power to direct Associates V as to its direction
of CD&R Fund V's voting and disposition of the shares held by CD&R Fund V.
No person controls the voting and dispositive power of Investment
Associates II with respect to the shares owned by CD&R Fund V. Each of
Associates V and Investment Associates II expressly disclaims beneficial
ownership of the shares owned by CD&R Fund V. The business address for each
of CD&R Fund V, Associates V and Investment Associates II is c/o Investment
Associates II, 1403 Foulk Road, Suite 106, Wilmington, Delaware 19803.
(2) Messrs. Clark, Rubio and Mason purchased shares of Parent Common Stock at
the Closing. On September 30, 1998, certain members of management, certain
directors and other persons purchased an aggregate of 40,437 shares of
Parent Common Stock in a transaction exempt from the registration
requirements of the Securities Act. Shares owned by CD&R Fund V are not
included herein. Mr. Gogel is an officer, director and shareholder of
Investment Associates II and Mr. Ireland is a director of Investment
Associates II.
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<PAGE>
THE TRANSACTIONS
The following is a summary of the structure of the Acquisition and certain
provisions of the Acquisition Agreement and the Transition Services Agreement.
THE ACQUISITION
On April 30, 1998, Parent completed the Acquisition of the Jafra Business
pursuant to the Acquisition Agreement. Parent, the U.S. Issuer, Jafra S.A. and
certain subsidiaries of Parent were organized to effect the Acquisition.
The Acquisition was accomplished as follows: (i) Jafra Cosmetics
International Inc., a California Corporation merged with the U.S. Issuer with
the U.S. Issuer surviving; (ii) Jafra S.A. acquired all the outstanding
capital stock of Grupo Jafra, which then merged with and into Jafra S.A., with
Jafra S.A. as the surviving entity; (iii) indirect subsidiaries of Parent
purchased the stock of Gillette subsidiaries conducting the Jafra Business in
Germany, Italy, the Netherlands and Switzerland; and (iv) indirect
subsidiaries of Parent acquired from various Gillette subsidiaries certain
assets used in the Jafra Business in Austria, Argentina, Colombia and
Venezuela.
THE ACQUISITION AGREEMENT
The purchase price for the Acquisition was approximately $200 million in
cash, subject to post-closing adjustment for changes in net worth of the Jafra
Business as of the closing as compared to net worth of the Jafra Business as
of September 30, 1997. See "Management's Discussion and Analysis of Financial
Conditions and Results of Operations--Recent Developments." Pursuant to the
Acquisition Agreement, Gillette has agreed, subject to certain limitations, to
retain or indemnify the Company for certain liabilities and obligations
relating to the Jafra Business prior to the Closing, including liabilities and
obligations relating to pre-Closing taxes, employee compensation and other
benefits and discontinued operations.
TRANSITION SERVICES AGREEMENT
At the Closing, Parent and Gillette entered into a Transition Services
Agreement (the "Transition Services Agreement") pursuant to which Gillette or
its affiliates agreed to provide certain administrative support services to
the Company for three months and with respect to certain personnel up to six
months. Pursuant to such agreement, the Company has exercised its right to
extend certain services for an additional three month period and has the right
to further extend such services through December 31, 1998. In addition, an
affiliate of Gillette will provide manufacturing services relating to the
products produced at the Company's manufacturing facility in Mexico until
December 31, 1998. After the transition period for manufacturing services at
the Mexico facility, all Gillette employees at such facility will be
transferred to the Company. Other than certain injection molding services that
the Company may continue to purchase from a Gillette affiliate, thereafter the
Company will be responsible for the manufacture of products at its Mexico
facility. The Company believes that the amounts to be paid for such services
generally reflect the historical allocated cost to the Company of such
services and that the Company will be able to perform such functions for
itself or purchase such services from third parties at amounts comparable to
or less than historical costs.
The Transition Services Agreement also includes a license to certain
Gillette formulas, ingredients and components currently used in Jafra products
and provides for Gillette to continue to manufacture certain Jafra products
until December 31, 1998.
THE FINANCINGS
In addition to the issuance of the Existing Notes, concurrently with and as
part of the financing for the Acquisition, Parent, the U.S. Issuer and Jafra
S.A. entered into the Senior Credit Agreement with the financial institutions
party thereto and Credit Suisse First Boston, as Administrative Agent,
providing for new senior secured credit facilities, including a $25 million
Term Loan Facility (all of which was drawn at the Closing) and a $65 million
multicurrency Revolving Credit Facility (approximately $15 million of which
has been drawn in connection with the Transactions). See "Description of the
Senior Credit Agreement."
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<PAGE>
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
CD&R Fund V, which is Parent's largest stockholder, is a private investment
fund managed by CD&R. Amounts contributed to CD&R Fund V by its limited
partners are invested at the discretion of the general partner in equity or
equity-related securities of entities formed to effect leveraged buy-out
transactions and in the equity of corporations where the infusion of capital,
coupled with the provision of managerial assistance by CD&R, can be expected
to generate returns on investments comparable to returns historically achieved
in leveraged buyout transactions. The general partner of CD&R Fund V is
Associates V, and the general partners of Associates V are Investment
Associates II, CD&R Investment Associates, Inc. and CD&R Cayman Investment
Associates, Inc., a Cayman Islands exempted company. Each of Mr. Gogel, who is
President and a director of CD&R, President and a director of Investment
Associates II and a limited partner of Associates V, Mr. Ireland, who is a
principal of CD&R, a limited partner of Associates V and a shareholder of
Investment Associates II, and Mr. Novak, who is a professional employee of
CD&R and a limited partner of Associates V, are directors of Parent. See
"Management."
CD&R is a private investment firm which is organized as a Delaware
corporation. CD&R is the manager of a series of investment funds, including
CD&R Fund V. CD&R generally assists in structuring, arranging financing for
and negotiating the transactions in which the funds it manages invest. After
the consummation of such transactions, CD&R generally provides advisory,
management consulting and monitoring services to the companies in which its
investment funds have invested during the period of such fund's investment.
CD&R received at Closing an initial transaction fee of $2.7 million for
providing services related to the structuring, implementation and consummation
of the Acquisition, in addition to the reimbursement of out-of-pocket
expenses. Pursuant to a consulting agreement entered into at the Closing,
until the tenth anniversary of the Acquisition or the date on which CD&R Fund
V no longer has an investment in the Company, CD&R will receive an annual fee
of $500,000 (and reimbursement of out-of-pocket expenses) for providing
advisory, management consulting and monitoring services to the Company. Such
services include, among others, helping the Company to establish effective
banking, legal and other business relationships and assisting management in
developing and implementing strategies for improving the operational,
marketing and financial performance of the Company. As required by the terms
of the Company's lending arrangements, such fees were determined by arm's-
length negotiation and are believed by the Company to be reasonable.
CD&R, CD&R Fund V and Parent entered into an indemnification agreement,
pursuant to which Parent has agreed to indemnify the members of its board of
directors, as well as CD&R, CD&R Fund V, Associates V, Investment Associates
II and certain of their members, partners, associates and affiliates (the
"Indemnitees") to the fullest extent allowable under applicable law and to
indemnify the Indemnitees against any suits, claims, damages or expenses which
may be made against or incurred by them under applicable securities laws in
connection with offerings of securities of the Company, including the
Offering, liabilities to third parties arising out of any action or failure to
act by the Company, and, except in cases of gross negligence or intentional
misconduct, the provision by CD&R of advisory, management consulting and
monitoring services.
Ralph S. Mason, III, who became Vice Chairman, Executive Vice President and
General Counsel of Parent as of the Closing, was a partner in the law firm of
Mason, Taylor & Colicchio. Prior to Closing, Mr. Mason and the law firm of
Mason, Taylor & Colicchio acted as legal counsel for the new management team,
including Messrs. Clark, Rubio and Mason, in connection with the Transactions.
The Company has entered into employment agreements with 11 members of
management, including Messrs. Clark, Rubio and Mason. The employment
agreements of Messrs. Clark and Rubio provide that each will be a director of
Parent during the term of his employment. See "Management--Employment
Agreements."
Members of management financed a portion of the cash purchase price of the
shares of Parent Common Stock they acquired through loans from the Chase
Manhattan Bank on market terms. To help members of management obtain such
terms for such financing, the Company fully and unconditionally guaranteed up
to 75% of the purchase price for the shares of Parent Common Stock purchased
by each such member of management.
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DESCRIPTION OF THE SENIOR CREDIT AGREEMENT
General. In connection with the Transactions, the U.S. Issuer and Jafra S.A.
(the "Borrowers") and Parent entered into the Senior Credit Agreement with the
financial institutions party thereto and Credit Suisse First Boston, as
Administrative Agent (the "Agent"). Chase Securities Inc. acts as syndication
agent in connection with the facilities. The following is a description of the
material terms of the Senior Credit Agreement and the related loan documents
(the "Credit Documentation") and is subject to and qualified in its entirety
by reference to the Credit Documentation, which has been filed as Exhibits to
the Registration Statement of which this Prospectus is a part.
The Senior Credit Agreement provides for senior secured credit facilities in
an aggregate principal amount of up to $90.0 million, consisting of (i) a
multicurrency revolving credit facility in an aggregate principal amount of up
to $65.0 million (the "Revolving Credit Facility") and (ii) a term loan
facility in an aggregate principal amount of $25.0 million (the "Term Loan
Facility", and together with the Revolving Credit Facility, the "Credit
Facilities"). The U.S. Issuer borrowed $15.0 million under the Term Loan
Facility and will be entitled to borrow up to 100% of the Revolving Credit
Facility available to it from time to time; Jafra S.A. borrowed $10.0 million
under the Term Loan Facility and is entitled to borrow up to 50% of the
Revolving Credit Facility available to it from time to time.
Use of Facility. In connection with the Transactions, the Borrowers borrowed
the entire amount available under the Term Loan Facility and approximately
$15.0 million under the Revolving Credit Facility, as part of the financing
for the Acquisition. See "The Transactions." The remaining unused commitment
under the Revolving Credit Facility as of September 30, 1998 was $44.3
million. The remaining unused commitment will be available to the Borrowers
from time to time for general corporate purposes.
Guarantee. The obligations of each Borrower under the Senior Credit
Agreement and the other Credit Documentation is unconditionally guaranteed by
Parent. Each Borrower's obligations is also guaranteed by the other Borrower
on a senior basis, including a 30-day standstill period prior to enforcement
of each such guarantee. The U.S. Issuer's obligations under the Senior Credit
Agreement will also be guaranteed by each subsequently acquired or organized
U.S. subsidiary of the U.S. Issuer, subject to certain exceptions. Jafra
S.A.'s obligations under the Senior Credit Agreement are also guaranteed by
each existing and subsequently acquired or organized subsidiary of Jafra S.A.
Subsequently organized U.S. subsidiaries of Parent (other than those specified
above) will guarantee the obligations of the Borrowers under the Senior Credit
Agreement and other Credit Documentation.
Security. Each Borrower's obligations under the Senior Credit Agreement and
each guarantor's obligations under the related guarantees are secured as fully
as is permitted by applicable law by substantially all of the assets of
Parent, the U.S. Issuer, Jafra S.A., each existing and subsequently acquired
or organized subsidiary of each of Jafra S.A., and each subsequently acquired
or organized U.S. subsidiary of the U.S. Issuer, including, but not limited
to, (a) a pledge of all the capital stock of the Borrowers, certain
intermediate holding companies and each existing and each subsequently
acquired or organized direct subsidiary of each of the Borrowers (which
pledge, in the case of any foreign subsidiary of the U.S. Issuer, shall be
limited to 65% of the capital stock of such foreign subsidiary) and (b)
security interests in, and mortgages on, substantially all tangible and
intangible assets of the Borrowers and each existing and each subsequently
acquired or organized subsidiary of Jafra S.A. and each existing and each
subsequently acquired or organized U.S. subsidiary of the U.S. Issuer.
Amortization; Interest; Fees; Maturity. Loans under the Term Loan Facility
are repayable in quarterly principal payments over six years. Loans under the
Revolving Credit Facility mature on the sixth anniversary of the Closing date.
Loans under the Term Loan Facility and the Revolving Credit Facility will bear
interest at a rate per annum equal, at the applicable Borrower's option, to
(a) an adjusted London inter-bank offered rate ("Adjusted LIBOR") plus the
applicable margin (the "Adjusted LIBOR Margin") or (b) an Alternate Base Rate
(equal to the higher of the Agent's prime rate and the Federal Funds Effective
Rate plus 1/2 of 1% plus the applicable margin (the "Applicable ABR Margin"
and, together with the Applicable LIBOR Margin, the
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"Applicable Margins") where the Applicable Margins are determined by reference
to the levels specified for the Company's ratio of (i) Total Debt (as defined
in the Senior Credit Agreement) outstanding as of the date of determination to
(ii) Consolidated EBITDA (as defined in the Senior Credit Agreement) for the
period of four consecutive fiscal quarters most recently ended as of such date
of determination. Notwithstanding the foregoing, the Applicable LIBOR Margin
and the Applicable ABR Margin for loans under the Credit Facilities will not
exceed 2.625% and 1.625%, respectively. Overdue amounts under the Senior
Credit Agreement not paid when due shall bear interest at a default rate equal
to 2.00% per annum above the otherwise applicable rate. The Borrowers may
enter into certain interest rate protection arrangements following the Closing
with respect to a portion of their indebtedness under the Senior Credit
Agreement that will be designed to place a cap on the interest rates payable
thereon.
The transaction fees and expenses set forth in the sources and uses of funds
for the Acquisition (see "The Transactions") include transaction fees payable
in connection with the commitments under the Senior Credit Agreement. In
addition, a commitment fee is payable quarterly on the daily average undrawn
portion of the Revolving Credit Facility, in the amount of 0.50% per annum or
less (depending on the ratio described in the preceding paragraph).
Prepayments. The Senior Credit Agreement permits voluntary prepayment of
loans thereunder without premium or penalty. Subject to certain exceptions,
mandatory prepayments are required to be made from (a) 100% of net cash
proceeds of all non-ordinary asset sales or other dispositions of property
(including insurance and condemnation proceeds); (b) 100% of the net cash
proceeds of issuances of indebtedness by the Company, other than as permitted
by the Senior Credit Agreement; and (c) 50% of excess cash flow for each
fiscal year in which the Company's Total Debt on the last day of such fiscal
year to its Consolidated EBITDA for the four fiscal quarters then ended is
greater than or equal to 3.75:1.00. Such mandatory prepayments will be applied
to loans outstanding under the Term Loan Facility until the loans thereunder
have been paid in full.
Covenants and Events of Default. The Senior Credit Agreement contains
covenants that, among other things, restrict the ability of the Company and
its subsidiaries to dispose of assets, incur additional debt, guarantee
obligations or contingent liabilities, repay the Notes, pay dividends, prepay
other indebtedness (including a specific restriction on prepayment of the
Notes), create liens on assets, make investments, loans or advances, engage in
mergers or consolidations, make capital expenditures or engage in certain
transactions with affiliates, and will otherwise restrict corporate
activities. The Senior Credit Agreement also contains certain financial
covenants, including (i) a maximum consolidated leverage ratio which commenced
on September 30, 1998 at a ratio of 6.25 to 1.00 and decreases to 3.50 to 1.00
after December 30, 2002, and (ii) a minimum consolidated interest coverage
ratio, which will commence on December 31, 1998 at a ratio of 1.50 to 1.00 and
increases to 3.00 to 1.00 after December 31, 2002.
The Senior Credit Agreement also contains provisions that prohibit any
modification of the Indenture in any manner that adversely affects the
interests of the Lenders.
The Senior Credit Agreement contains customary events of default, including,
among others, non-payment of principal or interest, bankruptcy, breach of
covenants and change of control. If for any reason either Borrower is unable
to comply with the terms of the Senior Credit Agreement, including the
covenants included therein, such noncompliance could result in an event of
default under the Senior Credit Agreement and could result in an acceleration
of the payment of the indebtedness outstanding under the Senior Credit
Agreement. Upon a bankruptcy default, the lenders' commitments under the
Senior Credit Agreement immediately terminate and the loans under the Senior
Credit Agreement become immediately due and payable. Upon other events of
default (including defaults under the Notes, the Guarantee Agreements, the
Security Documents and the Indemnity, Subrogation and Contribution Agreement
contemplated by the Senior Credit Agreement), the Agent may, with the consent
of the lenders, declare the commitments to be terminated and the loans to be
due and payable.
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THE EXCHANGE OFFER
The summary herein of certain provisions of the Registration Rights
Agreement does not purport to be complete and reference is made to the
provisions of the Registration Rights Agreement, which has been filed as an
exhibit to the Registration Statement and a copy of which is available as set
forth under the heading "Available Information."
TERMS OF THE EXCHANGE OFFER
General
In connection with the issuance of the Existing Notes pursuant to a Purchase
Agreement, dated as of April 28, 1998, between the Issuers and the Initial
Purchasers, the Initial Purchasers and their respective assignees became
entitled to the benefits of the Registration Rights Agreement.
Under the Registration Rights Agreement, the Issuers have agreed to use
their reasonable best efforts to (i) file with the Commission within 180 days
after April 30, 1998, the date the Existing Notes were issued (the "Issue
Date"), the Registration Statement of which this Prospectus is a part with
respect to a registered offer to exchange the Existing Notes for the New Notes
and (ii) cause the Registration Statement to be declared effective under the
Securities Act within 210 days after the Issue Date. The Company will keep the
Exchange Offer open for not less than days after the date notice of the
Exchange Offer is mailed to holders of the Existing Notes. The Exchange Offer
being made hereby, if commenced and consummated within the time periods
described in this paragraph, will satisfy those requirements under the
Registration Rights Agreement.
Upon the terms and subject to the conditions set forth in this Prospectus
and in the Letter of Transmittal, all Existing Notes validly tendered and not
withdrawn prior to 5:00 p.m., New York City time, on the Expiration Date will
be accepted for exchange. New Notes will be issued in exchange for an equal
principal amount of outstanding Existing Notes accepted in the Exchange Offer.
Existing Notes may be tendered only in integral multiples of $1,000. This
Prospectus, together with the Letter of Transmittal, is being sent to all
registered holders as of , 1998. The Exchange Offer is not conditioned upon
any minimum principal amount of Existing Notes being tendered for exchange.
However, the obligation to accept Existing Notes for exchange pursuant to the
Exchange Offer is subject to certain conditions as set forth herein under "--
Conditions."
Existing Notes shall be deemed to have been accepted as validly tendered
when, as and if the Issuers have given oral or written notice thereof to the
Exchange Agent. The Exchange Agent will act as agent for the tendering holders
of Existing Notes for the purposes of receiving the New Notes and delivering
New Notes to such holders.
Based on interpretations by the Staff of the Commission as set forth in no-
action letters issued to third parties (including Exxon Capital Holdings
Corporation (available May 13, 1988), Morgan Stanley & Co. Incorporated
(available June 5, 1991), K-III Communications Corporation (available May 14,
1993) and Shearman & Sterling (available July 2, 1993)), the Issuers believe
that the New Notes issued pursuant to the Exchange Offer may be offered for
resale, resold and otherwise transferred by any holder thereof (other than any
such holder that is a broker-dealer or an "affiliate" of the Issuers within
the meaning of Rule 405 under the Securities Act) without compliance with the
registration and prospectus delivery provisions of the Securities Act,
provided that (i) such New Notes are acquired in the ordinary course of
business, (ii) at the time of the commencement of the Exchange Offer such
holder has no arrangement or understanding with any person to participate in a
distribution of such New Notes and (iii) such holder is not engaged in, and
does not intend to engage in, a distribution of such New Notes. The Issuers
have not sought, and do not intend to seek, a no-action letter from the
Commission with respect to the effects of the Exchange Offer, and there can be
no assurance that the staff would make a similar determination with respect to
the New Notes as it has in such no-action letters.
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By tendering Existing Notes in exchange for New Notes and executing the
Letter of Transmittal, each holder will represent to the Issuers that: (i) any
New Notes received by such holder will be acquired in the ordinary course of
business, (ii) such holder will have no arrangements or understanding with any
person to participate in a distribution of the Existing Notes or the New Notes
within the meaning of the Securities Act, (iii) such holder is not an
"affiliate," as defined in Rule 405 of the Securities Act, of the Issuers or
if it is an affiliate, such holder will comply with the registration and
prospectus delivery requirements of the Securities Act to the extent
applicable, (iv) if such holder is not a broker-dealer, that it is not engaged
in, and does not intend to engage in, the distribution of the New Notes, (v)
if such holder is a broker-dealer, that it will receive New Notes for its own
account in exchange for Existing Notes that were acquired as a result of
market-making activities and that it will deliver a prospectus in connection
with any resale of such New Notes, and (vi) that it is not acting on behalf of
any person who could not truthfully make the foregoing representations.
Each broker-dealer that receives New Notes for its own account in exchange
for Existing Notes where such Existing Notes were acquired by such broker-
dealer as a result of market-making or other trading activities, must
acknowledge that it will deliver a prospectus meeting the requirements of the
Securities Act and that it has not entered into any arrangement or
understanding with the Issuers or an affiliate of the Issuers to distribute
the New Notes in connection with any resale of such New Notes. See "Plan of
Distribution."
Upon consummation of the Exchange Offer, subject to certain limited
exceptions, holders of Existing Notes who do not exchange their Existing Notes
for New Notes in the Exchange Offer will no longer be entitled to registration
rights and will not be able to offer or sell their Existing Notes, unless such
Existing Notes are subsequently registered under the Securities Act (which,
subject to certain limited exceptions, the Issuers and Note Guarantors will
have no obligation to do), except pursuant to an exemption from, or in a
transaction not subject to, the Securities Act and applicable state securities
laws.
The Issuers and, by acquiring the Notes, the holders of Notes agree to treat
$400 of each $1,000 principal amount of the Notes as indebtedness of Jafra
S.A. and $600 of each $1,000 principal amount of the Notes as indebtedness of
the U.S. Issuer for all U.S. federal, state and local and non-U.S. tax
purposes.
Expiration Date; Extensions; Amendments; Termination
The term "Expiration Date" shall mean , 1998 ( business days
following the commencement of the Exchange Offer), unless the Issuers, in
their sole discretion, extend the Exchange Offer, in which case the term
"Expiration Date" shall mean the latest date to which the Exchange Offer is
extended. Notwithstanding any extension of the Exchange Offer, if the Exchange
Offer is not consummated by December 28, 1998, additional interest will accrue
on the Existing Notes at the rate of (a) prior to March 29, 1999, (until the
Exchange Offer is consummated), 0.25% per annum and (b) thereafter (until the
Exchange Offer is consummated), 0.50% per annum. See "Registration Rights."
To extend the Expiration Date, the Company will notify the Exchange Agent of
any extension by oral or written notice and will notify the holders of the
Existing Notes by means of a press release or other public announcement prior
to 9:00 A.M., New York City time, on the next business day after the
previously scheduled Expiration Date. Such announcement may state that the
Issuers are extending the Exchange Offer for a specified period of time.
The Issuers reserve the right (i) to delay acceptance of any Existing Notes,
to extend the Exchange Offer or to terminate the Exchange Offer and not permit
acceptance of Existing Notes not previously accepted if any of the conditions
set forth herein under "--Conditions" shall have occurred and shall not have
been waived by the Issuers prior to the Expiration Date, by giving oral or
written notice of such delay, extension or termination to the Exchange Agent,
or (ii) to amend the terms of the Exchange Offer in any manner deemed by it to
be advantageous to the holders of the Existing Notes. Any such delay in
acceptance, extension, termination or amendment will be followed as promptly
as practicable by oral or written notice thereof to the Exchange Agent. If the
Exchange Offer is amended in a manner determined by the Issuers to constitute
a material change, the
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Issuers will promptly disclose such amendment in a manner reasonably
calculated to inform the holders of the Existing Notes of such amendment,
including by filing a post-effective amendment to the Registration Statement
of which this Prospectus is a part if required to do so under the Securities
Act.
Without limiting the manner in which the Issuers may choose to make public
announcement of any delay, extension, amendment or termination of the Exchange
Offer, the Issuers shall have no obligations to publish, advertise, or
otherwise communicate any such public announcement, other than by making a
timely release to an appropriate news agency.
INTEREST ON THE NEW NOTES
The New Notes will accrue interest at the rate of 11 3/4% per annum from the
Issue Date of the Existing Notes. Interest on the New Notes is payable on May
1 and November 1 of each year, commencing November 1, 1998.
PROCEDURES FOR TENDERING
To tender in the Exchange Offer, a holder must complete, sign and date the
Letter of Transmittal, or a facsimile thereof, have the signatures thereon
guaranteed if required by the Letter of Transmittal, and mail or otherwise
deliver such Letter of Transmittal or such facsimile, together with any other
required documents, to the Exchange Agent prior to 5:00 p.m., New York City
time, on the Expiration Date. In addition, either (i) a timely confirmation of
a book-entry transfer (a "Book-Entry Confirmation") of such Existing Notes
into the Exchange Agent's account at The Depository Trust Company (the "Book-
Entry Transfer Facility") pursuant to the procedure for book-entry transfer
described below, must be received by the Exchange Agent prior to the
Expiration Date or (ii) the holder must comply with the guaranteed delivery
procedures described below. THE METHOD OF DELIVERY OF LETTERS OF TRANSMITTAL
AND ALL OTHER REQUIRED DOCUMENTS IS AT THE ELECTION AND RISK OF THE HOLDERS.
IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT REGISTERED MAIL, PROPERLY
INSURED, WITH RETURN RECEIPT REQUESTED, BE USED. IN ALL CASES, SUFFICIENT TIME
SHOULD BE ALLOWED TO ASSURE TIMELY DELIVERY. NO LETTERS OF TRANSMITTAL OR
OTHER REQUIRED DOCUMENTS SHOULD BE SENT TO THE COMPANY. Delivery of all
documents must be made to the Exchange Agent at its address set forth below.
Holders may also request their respective brokers, dealers, commercial banks,
trust companies or nominees to effect such tender for such holders.
The tender by a holder of Existing Notes will constitute an agreement
between such holder and the Issuer in accordance with the terms and subject to
the conditions set forth herein and in the Letter of Transmittal. Any
beneficial owner whose Existing Notes are registered in the name of a broker,
dealer, commercial bank, trust company or other nominee and who wishes to
tender should contact such registered holder promptly and instruct such
registered holder to tender on his behalf.
Signatures on a Letter of Transmittal or a notice of withdrawal, as the case
may be, must be guaranteed by any member firm of a registered national
securities exchange or of the National Association of Securities Dealers,
Inc., a commercial bank or trust company having an office or correspondent in
the United States or an "eligible guarantor" institution within the meaning of
Rule 17Ad-15 under the Exchange Act (each an "Eligible Institution") unless
the Existing Notes tendered pursuant thereto is tendered for the account of an
Eligible Institution.
If the Letter of Transmittal is signed by trustees, executors,
administrators, guardians, attorneys-in-fact, officers of corporations or
others acting in a fiduciary or representative capacity, such person should so
indicate when signing, and unless waived by the Issuers, evidence satisfactory
to the Issuers of their authority to so act must be submitted with the Letter
of Transmittal.
All questions as to the validity, form, eligibility (including time of
receipt) and withdrawal of the tendered Existing Notes will be determined by
the Issuers in their sole discretion, which determination will be final and
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binding. The Issuers reserve the absolute right to reject any and all Existing
Notes not properly tendered or any Existing Notes which, if accepted, would,
in the opinion of counsel for the Issuers, be unlawful. The Issuers also
reserve the absolute right to waive any irregularities or conditions of tender
as to particular Existing Notes. The Issuers' interpretation of the terms and
conditions of the Exchange Offer (including the instructions in the Letter of
Transmittal) will be final and binding on all parties. Unless waived, any
defects or irregularities in connection with tenders of Existing Notes must be
cured within such time as the Issuers shall determine. Neither the Issuers,
the Exchange Agent nor any other person shall be under any duty to give
notification of defects or irregularities with respect to tenders of Existing
Notes, nor shall any of them incur any liability for failure to give such
notification. Tenders of Existing Notes will not be deemed to have been made
until such irregularities have been cured or waived. Any Existing Notes
received by the Exchange Agent that are not properly tendered and as to which
the defects or irregularities have not been cured or waived will be returned
without cost to such holder by the Exchange Agent, unless otherwise provided
in the Letter of Transmittal, as soon as practicable following the Expiration
Date.
In addition, the Issuers reserve the right in their sole discretion, subject
to the provisions of the Indenture, (i) to purchase or make offers for any
Existing Notes that remains outstanding subsequent to the Expiration Date or,
as set forth under "--Conditions", (ii) to terminate the Exchange Offer in
accordance with the terms of the Registration Rights Agreement, (iii) to
redeem Existing Notes as a whole or in part at any time and from time to time,
as set forth under "Description of Notes--Optional Redemption" and (iv) to the
extent permitted by applicable law, to purchase Existing Notes in the open
market, in privately negotiated transactions or otherwise. The terms of any
such purchases or offers could differ from the terms of the Exchange Offer.
ACCEPTANCE OF EXISTING NOTES FOR EXCHANGE; DELIVERY OF NEW NOTES
Upon satisfaction or waiver of all of the conditions to the Exchange Offer,
all Existing Notes properly tendered will be accepted promptly after the
Expiration Date, and the New Notes will be issued promptly after acceptance of
the Existing Notes. See "--Conditions." For purposes of the Exchange Offer,
Existing Notes shall be deemed to have been accepted as validly tendered for
exchange when, as and if the Issuers have given oral or written notice thereof
to the Exchange Agent.
In all cases, issuance of New Notes for Existing Notes that are accepted for
exchange pursuant to the Exchange Offer will be made only after timely receipt
by the Exchange Agent of a Book-Entry Confirmation of such Existing Notes into
the Exchange Agent's account at the Book-Entry Transfer Facility, a properly
completed and duly executed Letter of Transmittal and all other required
documents. If any tendered Existing Notes are not accepted for any reason set
forth in the terms and conditions of the Exchange Offer, such unaccepted or
such nonexchanged Existing Notes will be credited to an account maintained
with such Book- Entry Transfer Facility as promptly as practicable after the
expiration or termination of the Exchange Offer.
BOOK-ENTRY TRANSFER
The Exchange Agent will make a request to establish an account with respect
to the Existing Notes at the Book-Entry Transfer Facility for purposes of the
Exchange Offer within two business days after the date of this Prospectus. Any
financial institution that is a participant in the Book-Entry Transfer
Facility's systems may make book-entry delivery of Existing Notes by causing
the Book-Entry Transfer Facility to transfer such Existing Notes into the
Exchange Agent's account at the Book-Entry Transfer Facility in accordance
with such Book-Entry Transfer Facility's procedures for transfer. However, the
Letter of Transmittal or facsimile thereof with any required signature
guarantees and any other required documents must, in any case, be transmitted
to and received by the Exchange Agent at one of the addresses set forth below
under "--Exchange Agent" on or prior to the Expiration Date or the guaranteed
delivery procedures described below must be complied with.
EXCHANGING BOOK-ENTRY NOTES
The Exchange Agent and the Book Entry Transfer Facility have confirmed that
any financial institution that is a participant in the Book Entry Transfer
Facility may utilize the Book-Entry Transfer Facility Automated Tender Offer
Program ("ATOP") procedures to tender Existing Notes.
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Any participant in the Book Entry Transfer Facility may make book-entry
delivery of Existing Notes by causing the Book Entry Transfer Facility to
transfer such Existing Notes into the Exchange Agent's account in accordance
with the Book Entry Transfer Facility's ATOP procedures for transfer. However,
the exchange for the Existing Notes so tendered will only be made after a
Book-Entry Confirmation of such book-entry transfer of Existing Notes into the
Exchange Agent's account, and timely receipt by the Exchange Agent of an
Agent's Message (as such term is defined in the next sentence) and any other
documents required by the Letter of Transmittal. The term "Agent's Message"
means a message, transmitted by the Book Entry Transfer Facility and received
by the Exchange Agent and forming part of a Book-Entry Confirmation, which
states that the Book Entry Transfer Facility has received an express
acknowledgment from a participant tendering Existing Notes that are the
subject of such Book-Entry Confirmation that such participant has received and
agrees to be bound by the terms of the Letter of Transmittal, and that the
Issuers may enforce such agreement against such participant.
GUARANTEED DELIVERY PROCEDURES
If the procedures for book-entry transfer cannot be completed on a timely
basis, a tender may be effected if (i) the tender is made through an Eligible
Institution, (ii) prior to the Expiration Date, the Exchange Agent receives
from such Eligible Institution a properly completed and duly executed Letter
of Transmittal (or a facsimile thereof) and Notice of Guaranteed Delivery,
substantially in the form provided by the Issuers (by facsimile transmission,
mail or hand delivery), setting forth the name and address of the holder of
Existing Notes and the amount of Existing Notes tendered, stating that the
tender is being made thereby and guaranteeing that within three New York Stock
Exchange ("NYSE") trading days after the date of execution of the Notice of
Guaranteed Delivery, a Book-Entry Confirmation and any other documents
required by the Letter of Transmittal will be deposited by the Eligible
Institution with the Exchange Agent and (iii) a Book-Entry Confirmation and
all other documents required by the Letter of Transmittal are received by the
Exchange Agent within three NYSE trading days after the date of execution of
the Notice of Guaranteed Delivery.
WITHDRAWAL OF TENDERS
Tenders of Existing Notes may be withdrawn at any time prior to 5:00 p.m.,
New York City time on the Expiration Date.
For a withdrawal to be effective, a written notice of withdrawal must be
received by the Exchange Agent prior to 5:00 p.m., New York City time on the
Expiration Date at one of the addresses set forth below under "--Exchange
Agent." Any such notice of withdrawal must specify the name and number of the
account at the Book-Entry Transfer Facility from which the Existing Notes was
tendered, identify the principal amount of the Existing Notes to be withdrawn,
and specify the name and number of the account at the Book-Entry Transfer
Facility to be credited with the withdrawn Existing Notes and otherwise comply
with the procedures of such facility. All questions as to the validity, form
and eligibility (including time of receipt) of such notice will be determined
by the Issuers, whose determination shall be final and binding on all parties.
Any Existing Notes so withdrawn will be deemed not be have been validly
tendered for exchange for purposes of the Exchange Offer. Any Existing Notes
which have been tendered for exchange but which are not exchanged for any
reason will be credited to an account maintained with such Book-Entry Transfer
Facility for the Existing Notes as soon as practicable after withdrawal,
rejection of tender or termination of the Exchange Offer. Properly withdrawn
Existing Notes may be retendered by following one of the procedures described
under "--Procedures for Tendering" and "--Book-Entry Transfer" above at any
time on or prior to the Expiration Date.
CONDITIONS
The Company has no obligation to consummate the Exchange Offer if the New
Notes to be received by such holder or holders of Existing Notes in the
Exchange Offer, upon receipt, will not be tradable by such holder without
restriction under the Securities Act and the Exchange Act and without material
restrictions under the "blue sky" or securities laws of the several states of
the United States. All conditions to the Exchange Offer (with the exception of
certain necessary governmental approvals) must be satisfied or waived prior to
the Expiration Date.
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EXCHANGE AGENT
The State Street Bank and Trust Company has been appointed as Exchange Agent
for the Exchange Offer. Questions and requests for assistance and requests for
additional copies of this Prospectus or of the Letter of Transmittal should be
directed to the Exchange Agent addressed as follows:
By Mail: By Overnight Carrier
State Street Bank and Trust Company State Street Bank and Trust Company
P.O. Box 778 Two International Place
Boston, Massachusetts 02102 Boston, Massachusetts 02110
Attention: Corporate Trust Department Attention: Corporate Trust Department
Kellie Mullen Kellie Mullen
By Hand: in New York (as Drop Agent) By Hand: in Boston
State Street Bank and Trust Company, State Street Bank and Trust Company
N.A. Two International Place
61 Broadway, 15th Floor Fourth Floor, Corporate Trust
Corporate Trust Window Boston, Massachusetts 02110
New York, New York 10006
For Information Call:
(617) 664-5587
By Facsimile Transmission
(for Eligible Institutions only):
(617) 664-5314
Attention: Corporate Trust Department
Confirm by Telephone:
(617) 664-5314
FEES AND EXPENSES
The expenses of soliciting tenders pursuant to the Exchange Offer will be
borne by the Issuers. The principal solicitation for tenders pursuant to the
Exchange Offer is being made by mail; however, additional solicitations may be
made by telegraph, telephone, telecopy or in person by officers and regular
employees of the Issuers.
The Issuers will not make any payments to brokers, dealers or other persons
soliciting acceptances of the Exchange Offer. The Issuers, however, will pay
the Exchange Agent reasonable and customary fees for its services and will
reimburse the Exchange Agent for its reasonable out-of-pocket expenses in
connection therewith. The Issuers may also pay brokerage houses and other
custodians, nominees and fiduciaries the reasonable out-of-pocket expenses
incurred by them in forwarding copies of the Prospectus and related documents
to the beneficial owners of the Existing Notes, and in handling or forwarding
tenders for exchange.
The expenses to be incurred in connection with the Exchange Offer will be
paid by the Issuers, including fees and expenses of the Exchange Agent and
Trustee and accounting, legal, printing and related fees and expenses.
The Issuers will pay all transfer taxes, if any, applicable to the exchange
of Existing Notes pursuant to the Exchange Offer. If, however, New Notes or
Existing Notes for principal amounts not tendered or accepted for exchange are
to be registered or issued in the name of any person other than the registered
holder of the Existing Notes tendered, or if tendered Existing Notes are
registered in the name of any person other than the person signing the Letter
of Transmittal, or if a transfer tax is imposed for any reason other than the
exchange of Existing Notes pursuant to the Exchange Offer, then the amount of
any such transfer taxes (whether imposed on the registered holder or any other
persons) will be payable by the tendering holder. If satisfactory evidence of
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payment of such taxes or exemption therefrom is not submitted with the Letter
of Transmittal, the amount of such transfer taxes will be billed directly to
such tendering holder.
CONSEQUENCES OF FAILURE TO EXCHANGE
Holders of Existing Notes who do not exchange their Existing Notes for New
Notes pursuant to the Exchange Offer will continue to be subject to the
restrictions on transfer of such Existing Notes as set forth in the legend
thereon as a consequence of the issuance of the Existing Notes pursuant to
exemptions from, or in transactions not subject to, the registration
requirements of the Securities Act and applicable state securities laws. In
general, the Existing Notes may not be offered or sold, unless registered
under the Securities Act, except pursuant to an exemption from, or in a
transaction not subject to, the Securities Act and applicable state securities
laws. The Issuers do not currently anticipate that they will register the
Existing Notes under the Securities Act. To the extent that Existing Notes are
tendered and accepted in the Exchange Offer, the trading market for untendered
and tendered but unaccepted Existing Notes could be adversely affected.
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REGISTRATION RIGHTS
The following is a description of the material provisions of the
Registration Rights Agreement that does not purport to be complete and is
subject to, and is qualified in its entirety by reference to, the provisions
of the Registration Rights Agreement, which has been filed as an Exhibit to
the Registration Statement of which this Prospectus is a part.
Pursuant to the Registration Rights Agreement, the Issuers and the Note
Guarantors will file a shelf registration statement covering resales of
Existing Notes or New Notes, as the case may be (a "Shelf Registration
Statement"), if (i) any changes in the applicable interpretations of the staff
of the SEC do not permit the Issuers to effect such an Exchange Offer, (ii)
the Exchange Offer is not consummated within 240 days of the Issue Date, (iii)
under certain circumstances, the Initial Purchasers so request with respect to
Existing Notes not eligible to be exchanged for New Notes in the Exchange
Offer, or (iv) if any holder of Existing Notes (other than an Initial
Purchaser) is not permitted by applicable law to participate in the Exchange
Offer or does not receive freely tradeable New Notes in the Exchange Offer
(other than, in either case, due solely to the status of such holder as an
affiliate of either of the Issuers or due to such holder's inability to make
the representations referred to above). If any of these events occur, the
Issuers and the Note Guarantors will, at their own expense, use their
reasonable best efforts (a) as promptly as reasonably practicable, to file a
Shelf Registration Statement covering resales of Existing Notes or New Notes,
as the case may be, and (b) to cause the Shelf Registration Statement to be
declared effective under the Securities Act within 270 days after the Issue
Date. After such Shelf Registration Statement is declared effective, the
Issuers will use their reasonable best efforts to keep the Shelf Registration
Statement in effect until the earlier of two years from the Issue Date (or one
year in the case of a shelf registration effected at the request of the
Initial Purchasers) or such shorter period that will terminate when all the
Existing Notes or New Notes covered by the Shelf Registration Statement (i)
have been sold pursuant thereto or (ii) are distributed to the public pursuant
to Rule 144 or become eligible for resale pursuant to Rule 144 without volume
restriction, if any. Under certain circumstances, the Issuers may suspend the
availability of the Shelf Registration Statement for certain periods of time.
The Issuers will, in the event a Shelf Registration Statement is filed,
among other things, provide to each holder for whom such Shelf Registration
Statement was filed, copies of the prospectus that is a part of the Shelf
Registration Statement, notify each such holder when the Shelf Registration
Statement has become effective and take certain other actions as are required
to permit unrestricted resales of the Existing Notes or the New Notes, as the
case may be. A holder of Existing Notes selling such Existing Notes pursuant
to the Shelf Registration Statement generally would be required to be named as
a selling security holder in the related prospectus and to deliver a
prospectus to purchasers, will be subject to certain of the civil liability
provisions under the Securities Act in connection with such sales and will be
bound by certain provisions of the Registration Rights Agreement (including
certain indemnification obligations). In addition, each such holder of
Existing Notes will be required, among other things, to deliver information to
be used in connection with the Shelf Registration Statement within the time
periods set forth in the Registration Rights Agreement in order to benefit
from the provisions regarding additional interest set forth in the following
paragraph.
Additional Interest. Although the Issuers intend to file one or more
registration statements described above, as required, there can be no
assurance that any such registration statement (other than the one of which
this Prospectus is a part) will be filed, or if filed, that any thereof will
become effective. From the date of a Registration Default (as defined below)
to the date on which such Registration Default has been cured, additional
interest will accrue on the Transfer Restricted Notes (as defined below) at
the rate of (a) prior to the 91st day of such period (for so long as such
period is continuing), 0.25% per annum and (b) thereafter (so long as such
period is continuing), 0.50% per annum. Any such additional interest shall not
exceed such respective rates for such respective periods, and shall not in any
event exceed 0.50% per annum in the aggregate, regardless of the number of
Registration Defaults that shall have occurred and be continuing. Any such
additional interest shall be paid in the same manner and on the same dates as
interest payments in respect of Transfer Restricted Notes. Following the cure
of all Registration Defaults, the accrual of such additional interest will
cease. All Registration Defaults shall be deemed cured upon consummation of
the Exchange Offer.
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For purposes of the foregoing, each of the following events is a
"Registration Default": (i) neither the Exchange Offer Registration Statement
nor a Shelf Registration Statement has been filed with the SEC on or before
the 180th day after the Issue Date; (ii) the Exchange Offer is not consummated
on or before the 240th day after the Issue Date; (iii) if a Shelf Registration
Statement is required to be filed under the Registration Rights Agreement, (A)
the Shelf Registration Statement is not declared effective by the SEC on or
before the 270th day after the Issue Date (or, in the case of a Shelf
Registration Statement required to be filed in response to any change in
applicable interpretations of the staff of the SEC, if later, on or before the
90th day after publication of such change) or (B) during the time the Issuers
are required to use their reasonable best efforts to keep the Shelf
Registration in effect, the Issuers shall have suspended and be continuing to
suspend the availability of the Shelf Registration Statement for more than 30
days in the aggregate in any consecutive twelve-month period.
For purposes of the foregoing, "Transfer Restricted Notes" means each
Existing Note until (i) the date on which such Note has been exchanged for a
freely transferable Exchange Note in the Exchange Offer, (ii) the date on
which such Note has been effectively registered under the Securities Act and
disposed of in accordance with a Shelf Registration Statement, or (iii) the
date on which such Note is distributed to the public pursuant to Rule 144 of
the Securities Act or is eligible for resale pursuant to Rule 144 without
volume restriction, if any.
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DESCRIPTION OF NOTES
GENERAL
The Existing Notes were issued, and the New Notes offered hereby will be
issued, under an Indenture, dated as of April 30, 1998 (the "Indenture"),
among the U.S. Issuer, Jafra S.A., the initial Note Guarantors (as hereafter
defined) and State Street Bank and Trust Company, as Trustee (the "Trustee").
Immediately after the issuance of the Existing Notes, (i) the U.S. Issuer
merged with Jafra Cosmetics International, Inc., a California corporation,
with the U.S. Issuer as the surviving entity and (ii) Jafra S.A. acquired the
stock of Grupo Jafra, which then merged into Jafra S.A., with Jafra S.A.
surviving as a wholly owned subsidiary of Parent. Following such mergers, the
U.S. Issuer and Jafra S.A. became the primary obligors on the Notes. Copies of
the form of the Indenture is available upon request to the Company.
The following is a summary of the material provisions of the Indenture and
the Notes after giving effect to the Acquisition and related transactions,
including such mergers. It does not purport to be complete and is subject to,
and is qualified in its entirety by reference to, all the provisions of the
Indenture, including the definitions of certain terms therein and those terms
to be made a part thereof by the Trust Indenture Act of 1939, as amended
("TIA"). The capitalized terms defined in "--Certain Definitions" below are
used in this "Description of Notes" as so defined. As used herein, the term
"Company" refers to Parent, the term "JCI" refers to the U.S. Issuer and the
term "Issuers" refers to the U.S. Issuer and Jafra S.A.
Principal of, and premium, if any, and interest on, the Notes will be
payable, and the Notes may be exchanged or transferred, at the office or
agency of the Issuers in the Borough of Manhattan, The City of New York (which
initially shall be the corporate trust office of the Trustee, at 61 Broadway,
15th Floor, New York, New York 10006), except that, at the option of the
Issuers, payment of interest may be made by check mailed to the address of the
registered holders of the Notes as such address appears in the Note Register.
The Notes will be issued only in fully registered form, without coupons, in
denominations of $1,000 and any integral multiple of $1,000. No service charge
will be made for any registration of transfer or exchange of Notes, but the
Issuers may require payment of a sum sufficient to cover any transfer tax or
other similar governmental charge payable in connection therewith.
TERMS OF THE NOTES
The Notes will be issued initially in an aggregate principal amount of
$100.0 million. Additional securities may be issued under the Indenture in one
or more series from time to time ("Additional Notes"), subject to the
limitations set forth under "--Certain Covenants--Limitation on Indebtedness,"
which may vote as a class with the Notes and otherwise be treated as Notes for
purposes of the Indenture.
The Notes are the several obligations of the Issuers. Of the aggregate
principal amount of Notes of $100.0 million, JCI will be severally liable with
respect to the payment of $60.0 million of principal, together with interest
thereon (the "JCI Portion"), and Jafra S.A. will be severally liable with
respect to the payment of $40.0 million of principal, together with interest
thereon (the "Jafra S.A. Portion"). Except as otherwise described herein, JCI
and Jafra S.A. will be severally liable in respect of each outstanding Note in
the relative proportions of the JCI Portion and the Jafra S.A. Portion,
respectively (each such portion, a "Portion").
The Notes will mature on May 1, 2008. Each Note will bear interest at a rate
per annum shown on the front cover of this Offering Circular from the date of
issuance, or from the most recent date to which interest has been paid or
provided for, payable semiannually in cash to Holders of record at the close
of business on the April 15 or October 15 immediately preceding the interest
payment date on May 1 and November 1 of each year, commencing November 1,
1998.
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OPTIONAL REDEMPTION
Except as set forth in the following paragraph or under "--Redemption for
Changes in Withholding Taxes," the Notes will not be redeemable at the option
of the Issuers prior to May 1, 2003. Thereafter, the Notes will be redeemable,
at the Issuers' option, in whole or in part, and from time to time on and
after May 1, 2003 and prior to maturity; provided, however, that any such
optional redemption may only be effected concurrently by both of the Issuers
on a pro rata basis as between their respective Portions, based on the
relative proportions of the JCI Portion and the Jafra S.A. Portion. Such
redemption may be made upon notice mailed by first-class mail to each Holder's
registered address, not less than 30 nor more than 60 days prior to the
redemption date. Any such redemption and notice may, in the Issuers'
discretion, be subject to the satisfaction of one or more conditions
precedent. The Notes will be so redeemable at the following redemption prices
(expressed as a percentage of principal amount), plus accrued interest, if
any, to the relevant redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period commencing on
May 1 of the years set forth below:
<TABLE>
<CAPTION>
REDEMPTION
PERIOD PRICE
------ ----------
<S> <C>
2003........................................ 105.875%
2004........................................ 103.917
2005........................................ 101.958
2006 and thereafter......................... 100.000
</TABLE>
In addition, at any time and from time to time prior to May 1, 2001, the
Issuers at their option may concurrently redeem the Notes on a pro rata basis
as between their respective Portions (based on the relative proportions of the
JCI Portion and the Jafra S.A. Portion), in an aggregate principal amount
equal to up to 35% of the original aggregate principal amount of the Notes
(including the principal amount of any Additional Notes), with funds in an
aggregate amount (the "Redemption Amount") not exceeding the aggregate cash
proceeds of one or more Equity Offerings (as defined below), at a redemption
price (expressed as a percentage of principal amount thereof) of 111.75% plus
accrued interest, if any, to the redemption date (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date); provided, however, that an aggregate
principal amount of the Notes equal to at least 65% of the original aggregate
principal amount of the Notes (including the principal amount of any
Additional Notes) must remain outstanding after each such redemption. "Equity
Offering" means a sale of Capital Stock (other than Disqualified Stock) (x)
that is a sale of Capital Stock of the Company, or (y) proceeds of which in an
amount equal to or exceeding the Redemption Amount are contributed to the
Company or any of its Restricted Subsidiaries. The Issuers may make such
redemption upon notice mailed by first-class mail to each Holder's registered
address, not less than 30 nor more than 60 days prior to the redemption date
(but in no event more than 180 days after the completion of the related Equity
Offering). Any such notice may be given prior to the completion of the related
Equity Offering, and any such redemption or notice may, at the Issuers'
discretion, be subject to the satisfaction of one or more conditions
precedent, including but not limited to the completion of the related Equity
Offering.
SELECTION
In the case of any partial redemption, selection of the Notes for redemption
will be made by the Trustee on a pro rata basis, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Note of $1,000 in original principal amount or less
will be redeemed in part. If any Note is to be redeemed in part only, the
notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. A new Note in principal amount equal
to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Note. In the event of any partial
redemption (other than a redemption described under "--Redemption for Changes
in Withholding Taxes"), the several obligation of each Issuer for each Note
that remains outstanding shall continue in the same proportion as the relative
proportions of the JCI Portion and the Jafra S.A. Portion, respectively.
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ADDITIONAL AMOUNTS
All payments made on behalf of Jafra S.A. under or with respect to the Notes
or on behalf of any Note Guarantor (other than JCI) under or with respect to
any Note Guarantee (in any case a Person making such payment, a "Payor") shall
be made free and clear of and without withholding or deduction for or on
account of any present or future tax, duty, levy, impost, assessment or other
governmental charge (including penalties, interest and other liabilities
related thereto) imposed or levied by or on behalf of the Governments of
Mexico, Luxembourg or the jurisdiction of incorporation, seat of management or
residence for income tax purposes of any future Jafra S.A. Subsidiary
Guarantor or any successors to the Company, Jafra S.A. or any Jafra S.A.
Subsidiary Guarantor (each a "Successor Jurisdiction"), as the case may be, or
of any territory thereof or by any authority or agency therein or thereof
having power to tax (hereinafter "Taxes"), unless the Payor is required to
withhold or deduct Taxes by law or by the interpretation or administration
thereof by the relevant government authority or agency. If a Payor is so
required to withhold or deduct any amount for or on account of Taxes from any
payment made under or with respect to the Notes or a Note Guarantee, such
Payor will be required to pay such additional amounts ("Additional Amounts")
as may be necessary so that the net amount received by each Holder (including
Additional Amounts) after such withholding or deduction will not be less than
the amount the Holder would have received if such Taxes had not been withheld
or deducted; provided, however, that no Additional Amounts will be payable
with respect to:
(i) any payment to a Holder which is subject to such Taxes by reason of
its (or the beneficial owner of the Notes) being connected with Mexico,
Luxembourg or any Successor Jurisdiction or any territory thereof other
than a connection arising from the mere holding of Notes or the receipt of
payments in respect of the Notes or the Note Guarantees;
(ii) any Taxes with respect to a Note presented for payment more than 30
days after the date on which such payment became due and payable or the
date on which payment thereof is duly provided for and notice thereof given
to the Holders, whichever occurs later, except to the extent that the
Holder of such Note would have been entitled to such Additional Amounts on
presenting such Note for payment on any date during such 30-day period;
(iii) Taxes that would not have been imposed but for the failure of the
Holder or beneficial owner of a Note to comply with any certification,
identification, information, or other documentation requirement under law,
regulation, administrative practice or an applicable treaty that is a
precondition to exemption from, or reduction in the rate of, the
imposition, deduction or withholding of Taxes, provided that at least 60
days prior to (a) the first payment date with respect to which this clause
(iii) shall be applied and (b) in the event of a change in such
certification, identification, information or other documentation
requirement, the first payment date subsequent to such change, the Payor
shall have notified the Trustee, in writing, that the Holders or beneficial
owners of the Notes will be required to provide such information or
documentation;
(iv) estate, inheritance, gift, sales, transfer, personal property or
other similar taxes imposed with respect to such Notes;
(v) any Tax which is only payable otherwise than by withholding or
deduction from payments in respect of the Notes or the Note Guarantees; and
(vi) any combination of items (i), (ii), (iii), (iv) and (v) above.
Each Payor will also make such withholding or deduction and remit the full
amount deducted or withheld to the relevant authority as and when required in
accordance with applicable law. Each Payor will furnish to the Trustee of the
Notes, within 30 days after the date the payment of any Taxes is due pursuant
to applicable law, certified copies of tax receipts evidencing such payment by
such Payor; provided, however, that if the relevant Payor is unable to obtain
such receipt within 30 days, notwithstanding such Payor's best efforts to
obtain such receipts, the Payor will furnish such receipts to the Trustee as
soon as receipts can be obtained.
Whenever in the Indenture there is mentioned, in any context, (a) the
payment of principal, (b) purchase prices in connection with a purchase of
Notes, (c) interest or (d) any other amount payable on or with respect to
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any of the Notes or a Note Guarantee, such reference shall be deemed to
include payment of Additional Amounts provided for in this section to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof.
Each Payor will pay any present or future stamp, court or documentary taxes
or any other similar taxes, charges or levies that arise in Mexico, Luxembourg
or any Successor Jurisdiction from the execution, delivery, registration of,
or enforcement of rights under, the Notes, the Indenture or any other document
or instrument in relation thereof.
The obligations of each Payor described under this heading shall survive any
termination, defeasance or discharge of the Indenture.
For a discussion of the reduction in Mexican withholding taxes applicable to
payments under or with respect to the Notes and the Note Guarantees, see
"Taxation."
REDEMPTION FOR CHANGES IN WITHHOLDING TAXES
The Jafra S.A. Portion of the Notes may be redeemed, at the option of Jafra
S.A., at any time as a whole but not in part, on not less than 30 nor more
than 60 days' notice, at a redemption price equal to 100% of the principal
amount thereof, plus accrued and unpaid interest (if any) to the date of
redemption (subject to the right of holders of record on the relevant record
date to receive interest due on the relevant interest payment date), in the
event Jafra S.A., any successor to Jafra S.A. or any current or future Note
Guarantor of such Jafra S.A. Portion has become or would become obligated to
pay, on the next date on which any amount would be payable with respect to the
Notes, and such obligation cannot be avoided by such person's taking
reasonable measures available to it, any Additional Amounts in excess of
Additional Amounts that Jafra S.A., such successor or such Note Guarantor
would be required to pay if payments by Jafra S.A., such successor or such
Note Guarantor were subject to a 15% Mexican withholding tax as a result of a
change in or an amendment to applicable treaties or laws (including any
regulations promulgated thereunder) of Mexico (or any political subdivision or
taxing authority thereof or therein), or any change in or amendment to any
official position regarding the application or interpretation of such
treaties, laws or regulations, which change or amendment is announced or
becomes effective on or after the Issue Date ("Excessive Additional Amounts");
provided, however, that no such notice of redemption may be given earlier than
60 days prior to the earliest date on which Jafra S.A., such successor or such
Note Guarantor would, but for such redemption, be obligated to pay such
Excessive Additional Amounts. Prior to the publication of any notice of
redemption pursuant to this provision, Jafra S.A., any successor to Jafra S.A.
or any Note Guarantor will deliver to the Trustee (a) a certificate duly
signed by an officer of Jafra S.A., such successor or such Note Guarantor
stating that Jafra S.A., such successor or such Note Guarantor is entitled to
effect such redemption and setting forth a statement of facts showing that the
conditions precedent to the right of Jafra S.A., such successor or such Note
Guarantor so to redeem have occurred and (b) a written opinion of Mexican
legal counsel reasonably acceptable to the Trustee to the effect that Jafra
S.A., such successor or such Note Guarantor has or will become obligated to
pay such Excessive Additional Amounts as a result of an amendment or change
referred to in this provision.
NOTE GUARANTEES
The monetary obligations of the Issuers pursuant to the Notes, including any
repurchase obligation resulting from a Change of Control Triggering Event,
will be guaranteed on a senior subordinated basis by the Company. The
obligation of JCI with respect to the JCI Portion will also be guaranteed on a
senior subordinated basis by Jafra S.A. (subject to a 30-day standstill
period), and with certain exceptions, by each subsequently acquired or
organized U.S. Subsidiary of JCI. The obligation of Jafra S.A. with respect to
the Jafra S.A. Portion will also be guaranteed on a senior subordinated basis
by JCI (subject to a 30-day standstill period), and by each presently existing
or subsequently acquired or organized Restricted Subsidiary of Jafra S.A. The
terms and conditions of these Note Guarantees are further described below.
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The Company, as primary obligor and not merely as surety, will irrevocably
and fully and unconditionally Guarantee, on a senior subordinated basis, the
punctual payment when due, whether at Stated Maturity, by acceleration or
otherwise, of all monetary obligations of each Issuer under the Indenture and
the Notes, whether for principal of or interest on the Notes, expenses,
indemnification or otherwise (all such obligations of each Issuer being herein
called the "Guaranteed Note Obligations").
Each Issuer, as primary obligor and not merely as surety, will Guarantee, on
a senior subordinated basis, the punctual payment when due, whether at Stated
Maturity, by acceleration or otherwise, of all Guaranteed Note Obligations of
the other Issuer under the Indenture and the Notes with respect to the JCI
Portion (in the case of such Guarantee by Jafra S.A.) or the Jafra S.A.
Portion (in the case of such Guarantee by JCI). Proceedings or other actions
to enforce either such Note Guarantee of either Issuer may not be initiated or
taken until the earlier of (i) 30 days after written demand for payment has
been made thereunder by the Trustee or the Holders in accordance with the
terms of the Indenture and (ii) the occurrence of certain events of bankruptcy
of such Issuer.
Each U.S. Subsidiary Guarantor, as primary obligor and not merely as surety,
will jointly and severally, irrevocably and fully and unconditionally
Guarantee, on a senior subordinated basis, the punctual payment when due,
whether at Stated Maturity, by acceleration or otherwise, of all Guaranteed
Note Obligations of JCI under the Indenture and the Notes (all such Guaranteed
Note Obligations being herein called the "Guaranteed JCI Obligations"). At the
time of the Acquisition, JCI will not have any U.S. Subsidiaries. Each Jafra
S.A. Subsidiary Guarantor, as primary obligor and not merely as surety, will
jointly and severally, irrevocably and fully and unconditionally Guarantee, on
a senior subordinated basis, the punctual payment when due, whether at Stated
Maturity, by acceleration or otherwise, of all Guaranteed Note Obligations of
Jafra S.A. under the Indenture and the Notes (all such Guaranteed Note
Obligations being herein called the "Guaranteed Jafra S.A. Obligations"). Each
Subsidiary Guarantee will be limited in amount to an amount not to exceed the
maximum amount that can be guaranteed by the applicable Subsidiary Guarantor
without rendering the Subsidiary Guarantee, as it relates to such Subsidiary
Guarantor, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors
generally. If a Subsidiary Guarantee were to be rendered voidable, it could be
subordinated by a court to all other indebtedness (including guarantees and
other contingent liabilities) of the applicable Subsidiary Guarantor, and,
depending on the amount of such indebtedness, a Subsidiary Guarantor's
liability on its Subsidiary Guarantee could be reduced to zero. See "Risk
Factors--Fraudulent Transfer Considerations."
Each Note Guarantor will also agree to pay any and all reasonable out-of-
pocket expenses (including reasonable counsel fees and expenses) incurred by
the Trustee or the Holders in enforcing any rights under its Note Guarantee.
Each Note Guarantee shall be a continuing Guarantee and shall (i) remain in
full force and effect until payment in full of the principal amount of all
outstanding Notes (whether by payment at maturity, purchase, redemption,
defeasance, retirement or other acquisition) and all other relevant Guaranteed
Note Obligations then due and owing, unless earlier terminated as described
below, (ii) be binding upon such Note Guarantor and (iii) inure to the benefit
of and be enforceable by the Trustee, the Holders and their permitted
successors, transferees and assigns.
Notwithstanding the preceding paragraph, Note Guarantees will be subject to
termination and discharge under the circumstances described in this paragraph:
(1) Any Subsidiary Guarantor will automatically and unconditionally be
released from all obligations under its Subsidiary Guarantee, and such
Subsidiary Guarantee shall thereupon terminate and be discharged and of no
further force or effect, (i) concurrently with any sale or disposition (by
merger or otherwise) of any Subsidiary Guarantor or any interest therein in
accordance with the terms of the Indenture (including the covenant
described under "--Limitation on Sales of Assets and Subsidiary Stock") by
the Company or a Restricted Subsidiary, following which such Subsidiary
Guarantor is no longer a Restricted Subsidiary of the Company, (ii)
pursuant to the terms of its Subsidiary Guarantee, (iii) at any time that
such Subsidiary
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Guarantor is released from all its obligations under all its Guarantees of
payment by the relevant Issuer of Indebtedness (other than Bank
Indebtedness) of such Issuer, (iv) upon the merger or consolidation of such
Subsidiary Guarantor with and into the Company, an Issuer or another
Subsidiary Guarantor that is the surviving Person in such merger or
consolidation, (v) upon legal or covenant defeasance of the relevant
Issuer's obligations, or satisfaction and discharge of the Indenture, and
(vi) subject to customary contingent reinstatement provisions, upon payment
in full of the aggregate principal amount of all Notes then outstanding for
which the relevant Issuer is liable and all other Guaranteed Note
Obligations of such Issuer then due and owing.
(2) The Company will automatically and unconditionally be released from
all obligations under its Note Guarantee, and such Note Guarantee shall
thereupon terminate and be discharged and of no further force or effect,
(i) with respect to the predecessor Company, as and when provided under the
provisions described in the second paragraph under "--Merger and
Consolidation," (ii) pursuant to the terms of its Note Guarantee, (iii)
upon legal or covenant defeasance of the relevant Issuer's obligations, or
satisfaction and discharge of the Indenture, and (iv) subject to customary
contingent reinstatement provisions, upon payment in full of the aggregate
principal amount of all Notes then outstanding for which the relevant
Issuer is liable and all other Guaranteed Note Obligations of such Issuer
then due and owing.
(3) An Issuer will automatically and unconditionally be released from all
obligations under its Note Guarantee, and such Note Guarantee shall
thereupon terminate and be discharged and of no further force or effect,
(i) with respect to the relevant predecessor Issuer, as and when provided
under the provisions described in the second paragraph under "--Merger and
Consolidation," (ii) pursuant to the terms of its Note Guarantee, (iii)
upon legal or covenant defeasance of the other Issuer's obligations, or
satisfaction and discharge of the Indenture, and (iv) subject to customary
contingent reinstatement provisions, upon payment in full of the aggregate
principal amount of all Notes then outstanding for which the other Issuer
is liable and all other Guaranteed Note Obligations of the other Issuer
then due and owing.
Upon any such occurrence specified in this paragraph, the Trustee shall
execute any documents reasonably required in order to evidence such release,
discharge and termination in respect of such Note Guarantee.
Neither the Issuers nor any Note Guarantor shall be required to make a
notation on the Notes to reflect any such Note Guarantee or any such release,
termination or discharge.
RANKING
The indebtedness evidenced by the Notes and each Note Guarantee will be
unsecured Senior Subordinated Indebtedness of the Issuers or the relevant Note
Guarantor, as the case may be, will be subordinated in right of payment, as
set forth in the Indenture, to the payment when due of all existing and future
Senior Indebtedness of the Issuers or such Note Guarantor, including such
Person's obligations under the Senior Credit Facility, will rank pari passu in
right of payment with all existing and future Senior Subordinated Indebtedness
of such Person and will be senior in right of payment to all existing and
future Subordinated Obligations of such Person. The Notes and each Note
Guarantee will also be effectively subordinated to any Secured Indebtedness of
the Issuers or the relevant Note Guarantor, as the case may be, to the extent
of the value of the assets securing such Indebtedness. However, payment from
the money or the proceeds of U.S. Government Obligations held in any
defeasance trust described under "--Defeasance" below is not subordinated to
any Senior Indebtedness or subject to the restrictions described herein.
As of September 30, 1998, the outstanding Senior Indebtedness of the Issuers
was approximately $45.7 million, all of which was guaranteed by, and
constituted Senior Indebtedness of, the Note Guarantors (other than the
Issuers). In addition, the Issuers had additional availability of $44.3
million for borrowings under the Senior Credit Facility, all of which would
have been Secured Indebtedness, and no Senior Subordinated Indebtedness (other
than the indebtedness represented by the Notes). Although the Indenture
contains limitations on the
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amount of additional Indebtedness that the Issuers and the Note Guarantors may
Incur, under certain circumstances the amount of such Indebtedness could be
substantial and, in any case, such Indebtedness may be Senior Indebtedness or
Secured Indebtedness. See "--Certain Covenants--Limitation on Indebtedness"
below.
The terms on which each Note Guarantee will be subordinated to the prior
payment in full of Senior Indebtedness of the relevant Note Guarantor will be
substantially identical to those described below governing the subordination
of the Notes to the prior payment in full of Senior Indebtedness of the
Issuers.
All the operations of the Company, and a substantial portion of the
operations of JCI, are conducted through their respective Subsidiaries. Claims
of creditors of such Subsidiaries, including trade creditors, and claims of
preferred shareholders (if any) of such Subsidiaries will have priority with
respect to the assets and earnings of
such Subsidiaries over the claims of creditors of the Company or JCI,
including holders of the Notes. Therefore, Company's Note Guarantee will be
effectively subordinated to creditors (including trade creditors) and
preferred shareholders (if any) of Subsidiaries of the Company that are not
Issuers or (to the extent of their Note Guarantees) Subsidiary Guarantors, and
JCI's obligations with respect to the JCI Portion of the Notes will be
effectively subordinated to creditors (including trade creditors) and
preferred shareholders (if any) of Subsidiaries of JCI that are not U.S.
Subsidiary Guarantors. Although the Indenture limits the incurrence of
Indebtedness (including preferred stock) by certain of the Company's
Subsidiaries, such limitation is subject to a number of significant
qualifications. At September 30, 1998, the outstanding Indebtedness and trade
payables of the Company's Subsidiaries (other than the Issuers and the
Subsidiary Guarantors) totaled approximately $ million. No preferred stock
of such Subsidiaries was outstanding at such date. See "--Certain Covenants--
Limitation on Indebtedness" below.
"Senior Indebtedness" means, with respect to either Issuer or any Note
Guarantor, the following obligations, whether outstanding on the date of the
Indenture or thereafter issued, without duplication: (i) all Bank
Indebtedness, (ii) all obligations of such Person in respect of any
Receivables Financing, and (iii) all obligations of such Person consisting of
the principal of and premium, if any, and accrued and unpaid interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to such Person regardless of whether
post-filing interest is allowed in such proceeding) on, and fees and other
amounts owing in respect of, all other Indebtedness of such Person, unless, in
the instrument creating or evidencing the same or pursuant to which the same
is outstanding, it is expressly provided that the obligations in respect of
such Indebtedness are not senior in right of payment to the Notes or the Note
Guarantee of such Person; provided, however, that Senior Indebtedness shall
not include (1) any obligation of such Person to any Subsidiary of such
Person, (2) any liability for Federal, state, foreign, local or other taxes
owed or owing by such Person, (3) any accounts payable or other liability to
trade creditors arising in the ordinary course of business (including
Guarantees thereof or instruments evidencing such liabilities), (4) any
Indebtedness of such Person that is expressly subordinated in right of payment
to any other Indebtedness of such Person, (5) any Capital Stock of such Person
or (6) that portion of any Indebtedness of such Person that is Incurred by
such Person in violation of the covenant described under "--Certain
Covenants--Limitation on Indebtedness" (but no such violation shall be deemed
to exist for purposes of this clause (6) if any holder of such Indebtedness or
such holder's representative shall have received an Officer's Certificate of
the Company to the effect that such Incurrence of such Indebtedness does not
(or that the Incurrence of the entire committed amount thereof at the date on
which the initial borrowing thereunder is made would not) violate such
covenant). If any Senior Indebtedness is disallowed, avoided or subordinated
pursuant to the provisions of Section 548 of Title 11 of the United States
Code or any applicable state fraudulent conveyance law, such Senior
Indebtedness nevertheless will constitute Senior Indebtedness.
Only Indebtedness of an Issuer or a Note Guarantor that is Senior
Indebtedness will rank senior to such Person's obligations with respect to the
Notes or such Person's Note Guarantee, as the case may be, in accordance with
the provisions of the Indenture. Each Issuer's or Note Guarantor's obligations
with respect to the Notes and the relevant Note Guarantee, as the case may be,
will in all respects rank pari passu with all other Senior Subordinated
Indebtedness of such Person. The Company has agreed in the Indenture that it
will not Incur, and will not permit either Issuer or any Note Guarantor to
Incur, directly or indirectly, any Indebtedness that is
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expressly subordinated in right of payment to Senior Indebtedness of the
Company, such Issuer or such Note Guarantor, as the case may be, unless such
Indebtedness is pari passu with, or subordinated in right of payment to, the
Notes or the relevant Note Guarantee, as the case may be. Unsecured
Indebtedness is not deemed to be subordinate or junior to Secured Indebtedness
merely because it is unsecured, and Indebtedness that is not guaranteed by a
particular Person is not deemed to be subordinate or junior to Indebtedness
that is so guaranteed merely because it is not so guaranteed.
Neither Issuer may pay principal of, or premium (if any) or interest on, the
Notes or make any deposit pursuant to the provisions described under "--
Defeasance" below and may not otherwise purchase, redeem or otherwise retire
any Notes (collectively, "pay the Notes") if (i) any Senior Indebtedness of
such Issuer is not paid in full when due or (ii) any other default on Senior
Indebtedness of such Issuer occurs and the maturity of such Senior
Indebtedness is accelerated in accordance with its terms (either such event, a
"Payment Default") unless, in either case, (x) the Payment Default has been
cured or waived and any such acceleration has been rescinded in writing or (y)
such Senior Indebtedness has been paid in full. However, an Issuer may pay the
Notes without regard to the foregoing if such Issuer and the Trustee receive
written notice approving such payment from the Representative for the
Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.
In addition, during the continuance of any default (other than a Payment
Default) with respect to any Designated Senior Indebtedness of an Issuer
pursuant to which the maturity thereof may be accelerated immediately without
further notice (except such notice as may be required to effect such
acceleration) or the expiration of any applicable grace period (a "Non-payment
Default"), such Issuer may not pay the Notes for the period specified as
follows (a "Payment Blockage Period"). The Payment Blockage Period shall
commence upon the receipt by the Trustee (with a copy to such Issuer) of
written notice (a "Blockage Notice") of such Non-payment Default from the
Representative for such Designated Senior Indebtedness specifying an election
to effect a Payment Blockage Period and shall end on the earliest to occur of
the following events: (i) 179 days shall have elapsed since such receipt of
such Blockage Notice, (ii) the Non-payment Default giving rise to such
Blockage Notice is no longer continuing (and no other Payment Default or Non-
payment Default is then continuing), (iii) such Designated Senior Indebtedness
shall have been discharged or repaid in full or (iv) such Payment Blockage
Period shall have been terminated by written notice to the Trustee and such
Issuer from the Person or Persons who gave such Blockage Notice. An Issuer
shall promptly resume payments on the Notes, including any missed payments,
after such Payment Blockage Period ends, unless the holders of such Designated
Senior Indebtedness or the Representative of such holders have accelerated the
maturity of such Designated Senior Indebtedness, or any Payment Default
otherwise exists. Not more than one Blockage Notice to the Issuers in the
aggregate may be given in any 360 consecutive day period, irrespective of the
number of defaults with respect to Designated Senior Indebtedness during such
period, except that if any Blockage Notice within such 360-day period is given
by or on behalf of any holders of Designated Senior Indebtedness other than
Bank Indebtedness, a Representative of holders of Bank Indebtedness may give
another Blockage Notice within such period. In no event may the total number
of days during which any Payment Blockage Period is in effect extend beyond
179 days from the date of receipt by the Trustee of the relevant Blockage
Notice, and there must be a 181 consecutive day period during any 360
consecutive day period during which no Payment Blockage Period is in effect.
Upon any payment or distribution of the assets of an Issuer upon a total or
partial liquidation or dissolution or reorganization of or similar proceeding
relating to such Issuer or its property, or in a bankruptcy, insolvency,
receivership or similar proceeding relating to such Issuer or its property,
the holders of Senior Indebtedness of such Issuer will be entitled to receive
payment in full of such Senior Indebtedness before the Noteholders are
entitled to receive any payment from such Issuer and until the Senior
Indebtedness of such Issuer is paid in full, any payment or distribution from
such Issuer to which Noteholders would be entitled but for the subordination
provisions of the Indenture will be made to holders of such Senior
Indebtedness as their interests may appear. If a distribution from an Issuer
is made to Noteholders that due to the subordination provisions should not
have been made to them, such Noteholders are required to hold it in trust for
the holders of Senior Indebtedness of such Issuer and pay it over to them as
their interests may appear.
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If an Issuer fails to make any payment on the Notes when due or within any
applicable grace period, whether or not on account of the payment blockage
provisions referred to above, such failure would constitute an Event of
Default under the Indenture and would enable the holders of the Notes to
accelerate the maturity thereof. See "--Defaults." If payment of the Notes is
accelerated because of an Event of Default, the Issuers or the Trustee shall
promptly notify the holders of the Designated Senior Indebtedness of the
Issuers or the Representative of such holders of the acceleration. Such
acceleration will not be effective with respect to an Issuer, and such Issuer
may not pay the Notes, until five Business Days after such holders or the
Representative of each Designated Senior Indebtedness of such Issuer receive
notice of such acceleration and, thereafter, such Issuer may pay the Notes
only if the subordination provisions of the Indenture otherwise permit payment
at that time.
By reason of such subordination provisions contained in the Indenture, in
the event of liquidation, receivership, reorganization or insolvency, (i)
creditors of an Issuer who are holders of Senior Indebtedness of such Issuer
may recover more, ratably, from such Issuer than the Noteholders, (ii) trade
creditors of an Issuer who are not holders of Senior Indebtedness of such
Issuer or of Senior Subordinated Indebtedness of such Issuer (including the
Notes) may recover less, ratably, than holders of Senior Indebtedness of such
Issuer and may recover more, ratably, than the holders of Senior Subordinated
Indebtedness of such Issuer, and (iii) an Issuer may be unable to meet its
obligations on the Notes. In addition, as described above, the Notes will be
effectively subordinated, with respect to an Issuer's Subsidiaries that are
not Subsidiary Guarantors, to the claims of creditors of those Subsidiaries.
CHANGE OF CONTROL
Upon the occurrence after the Issue Date of a Change of Control (as defined
below) and the failure of the Notes to have, on the 30th day after such Change
of Control, a rating of at least BBB- (or equivalent successor rating) by S&P
and a rating of at least Baa3 (or equivalent successor rating) by Moody's (a
"Change of Control Triggering Event"), each Holder will have the right to
require the Issuers to repurchase, on a several basis in proportion to each
Issuer's several obligations in respect of the Notes, all or any part of such
Holder's Notes at a purchase price in cash equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date); provided,
however, that, the Issuers shall not be obligated to repurchase Notes pursuant
to this covenant in the event that they have exercised their right to redeem
all the Notes as described under "--Optional Redemption."
The term "Change of Control" means:
(i) any "person" (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act), other than one or more Permitted Holders, is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act), directly or indirectly, of a percentage of the total voting power of
the Voting Stock of the Company that is (x) greater than the percentage
thereof that is then held in the aggregate by Permitted Holders and (y)
greater than 35% of the total voting power of the Voting Stock of the
Company (for the purposes of this clause (i), such other person shall be
deemed to beneficially own any Voting Stock of the Company held by a parent
corporation, if the Company is a Subsidiary of such parent corporation and
such other person is the beneficial owner (as defined in this clause (i)),
directly or indirectly, of a percentage of the total voting power of the
Voting Stock of the parent corporation that is (x) greater than the
percentage thereof that is then held in the aggregate by Permitted Holders
and (y) greater than 35% of the total voting power of the Voting Stock of
such parent corporation);
(ii) the Company ceases to beneficially own, directly or indirectly, 100%
of the aggregate voting power of the Voting Stock of either Issuer
(excluding beneficial ownership of any other Person attributable to
Designated Equity Interests), other than in a transaction by the Company in
compliance with the provisions described under "--Merger and Consolidation"
in which the Company's Successor succeeds to such beneficial ownership of
the Company;
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(iii) during any period of two consecutive years (during which period the
Company has been a party to the Indenture), individuals who at the
beginning of such period were members of the board of directors of the
Company (together with any new members thereof whose election by such board
of directors or whose nomination for election by holders of Capital Stock
of the Company was approved by one or more Permitted Holders or by a vote
of a majority of the members of such board of directors then still in
office
who were either members thereof at the beginning of such period or whose
election or nomination for election was previously so approved) cease for
any reason to constitute a majority of such board of directors then in
office; or
(iv) the Company merges or consolidates with or into, or sells or
transfers (in one or a series of related transactions) all or substantially
all of the assets of the Company and its Restricted Subsidiaries to,
another Person (other than one or more Permitted Holders) and any "person"
(as defined in clause (i) above), other than one or more Permitted Holders,
is or becomes the "beneficial owner" (as so defined), directly or
indirectly, of a percentage of the total voting power of the Voting Stock
of the surviving Person in such merger or consolidation, or the transferee
Person in such sale or transfer of assets, as the case may be, that is (x)
greater than the percentage thereof that is then held in the aggregate by
Permitted Holders and (y) greater than 35% of the total voting power of
such Voting Stock (for purposes of this clause (iv), such other person
shall be deemed to beneficially own any Voting Stock of such surviving or
transferee Person held by a parent corporation, if such surviving or
transferee Person is a Subsidiary of such parent corporation and such other
person is the beneficial owner (as so defined), directly or indirectly, of
a percentage of the total voting power of the Voting Stock of such parent
corporation that is (x) greater than the percentage thereof that is then
held in the aggregate by Permitted Holders and (y) greater than 35% of the
total voting power of such Voting Stock).
In the event that, at the time of such Change of Control Triggering Event,
the terms of the Bank Indebtedness restrict or prohibit the repurchase of
Notes pursuant to this covenant, then prior to the mailing of the notice to
Holders provided for in the immediately following paragraph but in any event
not later than 30 days following the date the Company obtains actual knowledge
of any Change of Control Triggering Event (unless the Issuers have exercised
their right to redeem all the Notes as described under "--Optional
Redemption"), the Issuers shall (i) repay in full all Bank Indebtedness or
offer to repay in full all Bank Indebtedness and repay the Bank Indebtedness
of each lender who has accepted such offer or (ii) obtain the requisite
consent under the agreements governing the Bank Indebtedness to permit the
repurchase of the Notes as provided for in the immediately following
paragraph. The Issuers shall first comply with the provisions of the
immediately preceding sentence before they shall be required to repurchase
Notes pursuant to the provisions described below. The Issuers' failure to
comply with such provisions or the provisions of the immediately following
paragraph shall constitute an Event of Default described in clause (iv) and
not in clause (ii) under "--Defaults" below.
Unless the Issuers have exercised their right to redeem all the Notes as
described under "--Optional Redemption," the Issuers shall, not later than 30
days following the date the Company obtains actual knowledge of any Change of
Control Triggering Event having occurred, mail a notice to each Holder with a
copy to the Trustee stating: (1) that a Change of Control Triggering Event has
occurred or may occur and that such Holder has, or upon such occurrence will
have, the right to require the Issuers, severally in proportion to their
respective obligations in respect of the Notes, to purchase such Holder's
Notes at a purchase price in cash equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the date of purchase
(subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date); (2) the circumstances and
relevant facts and financial information regarding such Change of Control; (3)
the repurchase date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed); (4) the instructions determined by
the Issuers, consistent with this covenant, that a Holder must follow in order
to have its Notes purchased; and (5) if such notice is mailed prior to the
occurrence of a Change of Control or Change of Control Triggering Event, that
such offer is conditioned on the occurrence of such Change of Control
Triggering Event.
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The Issuers will comply, to the extent applicable, with the requirements of
Section 14(e) of the Exchange Act, Rules 13e-4 and 14e-1 under the Exchange
Act, and any other securities laws or regulations in connection with the
repurchase of Notes pursuant to this covenant. To the extent that the
provisions of any securities laws or regulations conflict with provisions of
this covenant, the Issuers will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under this
covenant by virtue thereof.
The Change of Control Triggering Event purchase feature is a result of
negotiations between the Issuers and the Initial Purchasers. The Company has
no present plans to engage in a transaction involving a Change of Control,
although it is possible that the Company would decide to do so in the future.
Subject to the limitations discussed below, the Company could, in the future,
enter into certain transactions, including acquisitions, refinancings or
recapitalizations, that would not constitute a Change of Control under the
Indenture, but that could increase the amount of Indebtedness outstanding at
such time or otherwise affect the Company's capital structure or credit
ratings.
The occurrence of a Change of Control would constitute a default under the
Senior Credit Agreement. Agreements governing future Senior Indebtedness of
the Company may contain prohibitions of certain events that would constitute a
Change of Control or require such Senior Indebtedness to be repurchased or
repaid upon a Change of Control. Moreover, the exercise by the Holders of
their right to require the Issuers to repurchase the Notes could cause a
default under such agreements, even if the Change of Control itself does not,
due to the financial effect of such repurchase on the Issuers. Finally, an
Issuer's ability to pay cash to the Holders upon a repurchase may be limited
by such Issuer's then existing financial resources. There can be no assurance
that sufficient funds will be available when necessary to make any required
repurchases.
The definition of Change of Control includes a phrase relating to the sale
or other transfer of "all or substantially all" of the Company's assets, as
such phrase is used in the Revised Model Business Corporation Act. Although
there is a developing body of case law interpreting the phrase "substantially
all," there is no precise definition of the phrase under applicable law.
Accordingly, in certain circumstances there may be a degree of uncertainty in
ascertaining whether a particular transaction would involve a disposition of
"all or substantially all" of the assets of the Company, and therefore it may
be unclear as to whether a Change of Control has occurred and whether the
holders of the Notes have the right to require the Company to repurchase such
Notes.
CERTAIN COVENANTS
The Indenture contains covenants including, among others, the following:
Limitation on Indebtedness. (a) The Company will not, and will not permit
any Restricted Subsidiary to, Incur any Indebtedness; provided, however, that
the Company, either Issuer or any Subsidiary Guarantor may Incur Indebtedness
if on the date of the Incurrence of such Indebtedness, after giving effect to
the Incurrence thereof, the Consolidated Coverage Ratio would be greater than
2.00:1.00 if such Indebtedness is Incurred prior to May 1, 2001 or 2.25:1.00
if such Indebtedness is Incurred thereafter.
(b) Notwithstanding the foregoing paragraph (a), the Company and its
Restricted Subsidiaries may Incur the following Indebtedness:
(i) Indebtedness Incurred pursuant to the Senior Credit Facility
(including in respect of letters of credit or bankers' acceptances issued
or created thereunder) and Indebtedness of any Foreign Subsidiary Incurred
other than under the Senior Credit Facility, and (without limiting the
foregoing), in each case, any Refinancing Indebtedness in respect thereof,
in a maximum principal amount which, when taken together with the amount of
all Indebtedness Incurred pursuant to this clause (i) and then outstanding,
does not exceed the amount equal to (A) $100.0 million, plus (B) the
amount, if any, by which the Borrowing Base exceeds $65.0 million, plus (C)
in the case of any refinancing of the Senior Credit Facility or any portion
thereof, the aggregate amount of fees, underwriting discounts, premiums and
other costs and expenses incurred in connection with such refinancing;
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(ii) Indebtedness (A) of any Restricted Subsidiary issued to and held by
the Company or (B) of the Company or any Restricted Subsidiary issued to
and held by any Restricted Subsidiary; provided, however, that any
subsequent issuance or transfer of any Capital Stock of such Restricted
Subsidiary to which such Indebtedness is owed, or any other event, that
results in such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any other subsequent transfer of such Indebtedness (except to
the Company or a Restricted Subsidiary) will be deemed, in each case, an
Incurrence of such Indebtedness by the issuer thereof;
(iii) Indebtedness represented by the Notes, any Indebtedness (other than
the Indebtedness described in clauses (i) or (ii) above) outstanding on the
Issue Date and any Refinancing Indebtedness Incurred in respect of any
Indebtedness described in this clause (iii) or paragraph (a) above;
(iv) Purchase Money Obligations and Capitalized Lease Obligations, and
any Refinancing Indebtedness with respect thereto, in an aggregate
principal amount at any time outstanding not exceeding an amount equal to
6% of Consolidated Total Assets at any time outstanding;
(v) Indebtedness of any Foreign Subsidiary Incurred for working capital
purposes;
(vi) (A) Guarantees by the Company or any Restricted Subsidiary of
Indebtedness or any other obligation or liability of the Company or any
Restricted Subsidiary (other than Indebtedness Incurred in violation of the
covenant described hereunder) or (B) Indebtedness of the Company or any
Restricted Subsidiary arising by reason of any Lien granted by or
applicable to such Person securing Indebtedness of the Company or any
Restricted Subsidiary (other than Indebtedness Incurred in violation of the
covenant described hereunder);
(vii) Indebtedness of the Company or any Restricted Subsidiary (A)
arising from the honoring of a check, draft or similar instrument of such
Person drawn against insufficient funds, provided that such Indebtedness is
extinguished within five Business Days of its incurrence, or (B) consisting
of guarantees, indemnities, obligations in respect of earnouts or other
purchase price adjustments, or similar obligations, Incurred in connection
with the acquisition or disposition of any business, assets or Person
(including pursuant to the Acquisition);
(viii) Indebtedness of the Company or any Restricted Subsidiary in
respect of (A) letters of credit, bankers' acceptances or other similar
instruments or obligations issued, or relating to liabilities or
obligations incurred, in the ordinary course of business (including those
issued to governmental entities in connection with self-insurance under
applicable workers' compensation statutes), or (B) completion guarantees,
surety, judgment, appeal or performance bonds, or other similar bonds,
instruments or obligations, provided, or relating to liabilities or
obligations incurred, in the ordinary course of business, or (C) Hedging
Obligations entered into for bona fide hedging purposes in the ordinary
course of business, or (D) Management Guarantees or (E) the financing of
insurance premiums in the ordinary course of business;
(ix) Indebtedness of a Receivables Subsidiary secured by a Lien on all or
part of the assets disposed of in, or otherwise incurred in connection
with, a Financing Disposition;
(x) Indebtedness of any Person that is assumed by the Company or any
Restricted Subsidiary in connection with its acquisition of assets from
such Person or any Affiliate thereof or is issued and outstanding on or
prior to the date on which such Person was acquired by the Company or any
Restricted Subsidiary or merged or consolidated with or into the Company or
any Restricted Subsidiary (other than Indebtedness Incurred to finance, or
otherwise in connection with, such acquisition); provided, however, that on
the date of such acquisition, merger or consolidation, after giving effect
thereto, (x) with respect to any such Indebtedness of the Company, either
Issuer or any Subsidiary Guarantor, (A) the Company could Incur at least
$1.00 of additional Indebtedness pursuant to paragraph (a) above or (B) the
Consolidated Coverage Ratio is greater than it was on such date immediately
prior to giving effect to such acquisition and (y) with respect to any such
Indebtedness of any Restricted Subsidiary that is not a Subsidiary
Guarantor or an Issuer, the Company could Incur at least $1.00 of
additional Indebtedness pursuant to paragraph (a) above; and any
Refinancing Indebtedness with respect to any such Indebtedness;
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(xi) Indebtedness in an amount at any time outstanding not exceeding
twice the amount of Excluded Contributions made after the Issue Date;
provided, however, that the proceeds of such Indebtedness and the related
amount of such Excluded Contributions are used to finance the acquisition
of assets of any Person in a Related Business or the merger or
consolidation of such a Person into or with the Company or any Restricted
Subsidiary (including but not limited to payment of any related fees and
expenses), or to refinance any such acquisition, merger or consolidation
with such Indebtedness being Incurred for such refinancing within nine
months of the closing of such acquisition, merger or consolidation; and any
Refinancing Indebtedness with respect to any such Indebtedness; and
(xii) Indebtedness of the Company or any Restricted Subsidiary in an
aggregate principal amount which, when taken together with the amount of
all Indebtedness Incurred pursuant to this clause (xii) and then
outstanding, does not exceed an amount equal to 11.5% of Consolidated Total
Assets at any time outstanding.
(c) For purposes of determining compliance with, and the outstanding
principal amount of any particular Indebtedness Incurred pursuant to and in
compliance with, this covenant, (i) any other obligation of the obligor on
such Indebtedness (or of any other Person who could have Incurred such
Indebtedness under this covenant) arising under any Guarantee, Lien or letter
of credit, bankers' acceptance or other similar instrument or obligation
supporting such Indebtedness shall be disregarded to the extent that such
Guarantee, Lien or letter of credit, bankers' acceptance or other similar
instrument or obligation secures the principal amount of such Indebtedness;
(ii) in the event that Indebtedness meets the criteria of more than one of the
types of Indebtedness described in paragraph (b) above, the Company, in its
sole discretion, shall classify such item of Indebtedness and only be required
to include the amount and type of such Indebtedness in one of such clauses;
and (iii) the amount of Indebtedness issued at a price that is less than the
principal amount thereof shall be equal to the amount of the liability in
respect thereof determined in accordance with GAAP.
(d) For purposes of determining compliance with any Dollar-denominated
restriction on the Incurrence of Indebtedness denominated in a foreign
currency, the Dollar-equivalent principal amount of such Indebtedness Incurred
pursuant thereto shall be calculated based on the relevant currency exchange
rate in effect on the date that such Indebtedness was Incurred, in the case of
term Indebtedness, or first committed, in the case of revolving credit
Indebtedness, provided that (x) the Dollar-equivalent principal amount of any
such Indebtedness outstanding on the Issue Date shall be calculated based on
the relevant currency exchange rate in effect on the Issue Date, (y) if such
Indebtedness is Incurred to refinance other Indebtedness denominated in a
foreign currency, and such refinancing would cause the applicable Dollar-
denominated restriction to be exceeded if calculated at the relevant currency
exchange rate in effect on the date of such refinancing, such Dollar-
denominated restriction shall be deemed not to have been exceeded so long as
the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced and (z) the Dollar-
equivalent principal amount of Indebtedness denominated in a foreign currency
and Incurred pursuant to the Senior Credit Facility shall be calculated based
on the relevant currency exchange rate in effect on, at the Company's option,
(i) the Issue Date, (ii) any date on which any of the respective commitments
under the Senior Credit Facility shall be reallocated between or among
facilities or subfacilities thereunder, or on which such rate is otherwise
calculated for any purpose thereunder, or (iii) the date of such Incurrence.
The principal amount of any Indebtedness Incurred to refinance other
Indebtedness, if Incurred in a different currency from the Indebtedness being
refinanced, shall be calculated based on the currency exchange rate applicable
to the currencies in which such respective Indebtedness is denominated that is
in effect on the date of such refinancing.
Limitation on Layering. The Company shall not permit either Issuer to Incur
any Indebtedness that is expressly subordinated in right of payment to any
Senior Indebtedness of such Issuer, unless such Indebtedness so Incurred ranks
pari passu in right of payment with, or is subordinated in right of payment
to, such Issuer's Indebtedness with respect to the Notes. The Company shall
not Incur any Indebtedness that is expressly subordinated in right of payment
to any Senior Indebtedness of the Company, unless such Indebtedness so
Incurred ranks pari passu in right of payment with the Company's Note
Guarantee, or is subordinated in right of payment to the Company's Note
Guarantee. The Company shall not permit any Subsidiary Guarantor to Incur
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any Indebtedness that is expressly subordinated in right of payment to any
Senior Indebtedness of such Subsidiary Guarantor, unless such Indebtedness so
Incurred ranks pari passu in right of payment with the such Subsidiary
Guarantor's Subsidiary Guarantee, or is subordinated in right of payment to
such Subsidiary Guarantee. Unsecured Indebtedness is not deemed to be
subordinate or junior to secured Indebtedness merely because it is unsecured,
and Indebtedness that is not guaranteed by a particular Person is not deemed
to be subordinate or junior to Indebtedness that is so guaranteed merely
because it is not so guaranteed.
Limitation on Restricted Payments. (a) The Company shall not, and shall not
permit any Restricted Subsidiary, directly or indirectly, to (i) declare or
pay any dividend or make any distribution on or in respect of its Capital
Stock (including any such payment in connection with any merger or
consolidation to which the Company is a party) except (x) dividends or
distributions payable solely in its Capital Stock (other than Disqualified
Stock) and (y) dividends or distributions payable to the Company or any
Restricted Subsidiary (and, in the case of any such Restricted Subsidiary
making such dividend or distribution, to other holders of its Capital Stock on
no more than a pro rata basis, measured by value), (ii) purchase, redeem,
retire or otherwise acquire for value any Capital Stock of the Company held by
Persons other than the Company or a Restricted Subsidiary (other than any
acquisition of Capital Stock deemed to occur upon the exercise of options if
such Capital Stock represents a portion of the exercise price thereof), (iii)
purchase, repurchase, redeem, defease or otherwise acquire or retire for
value, prior to scheduled maturity, scheduled repayment or scheduled sinking
fund payment, any Subordinated Obligations (other than a purchase, redemption,
defeasance or other acquisition or retirement for value in anticipation of
satisfying a sinking fund obligation, principal installment or final maturity,
in each case due within one year of the date of such acquisition or
retirement) or (iv) make any Investment (other than a Permitted Investment) in
any Person (any such dividend, distribution, purchase, redemption, repurchase,
defeasance, other acquisition or retirement or Investment being herein
referred to as a "Restricted Payment"), if at the time the Company or such
Restricted Subsidiary makes such Restricted Payment:
(1) a Default shall have occurred and be continuing (or would result
therefrom);
(2) the Company could not incur at least an additional $1.00 of
Indebtedness pursuant to paragraph (a) of the covenant described under "--
Limitation on Indebtedness"; or
(3) the aggregate amount of such Restricted Payment and all other
Restricted Payments (the amount so expended, if other than in cash, to be
as determined in good faith by the Board of Directors, whose determination
shall be conclusive) declared or made subsequent to the Issue Date and then
outstanding would exceed the sum of:
(A) 50% of the Consolidated Net Income accrued during the period
(treated as one accounting period) from April 30, 1998 to the end of
the most recent fiscal quarter ending prior to the date of such
Restricted Payment for which consolidated financial statements of the
Company are available (or, in case such Consolidated Net Income shall
be a negative number, 100% of such negative number);
(B) the aggregate Net Cash Proceeds, and fair value (as determined in
good faith by the Board of Directors) of property or assets, received
(x) by the Company as capital contributions to the Company after the
Issue Date or from the issuance or sale (other than to a Restricted
Subsidiary) of its Capital Stock (other than Disqualified Stock) after
the Issue Date (other than Excluded Contributions) or (y) by the
Company or any Restricted Subsidiary from the issuance and sale by the
Company or any Restricted Subsidiary after the Issue Date of
Indebtedness that shall have been converted into or exchanged for
Capital Stock of the Company (other than Disqualified Stock), plus the
amount of cash, property or assets (determined as provided above)
received by the Company or any Restricted Subsidiary upon such
conversion or exchange;
(C) the aggregate amount equal to the net reduction in Investments in
Unrestricted Subsidiaries resulting from (i) dividends, distributions,
interest payments, return of capital, repayments of Investments or
other transfers of assets to the Company or any Restricted Subsidiary
from any Unrestricted Subsidiary, or (ii) the redesignation of any
Unrestricted Subsidiary as a Restricted Subsidiary (valued in each case
as provided in the definition of "Investment"), not to exceed in the
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case of any such Unrestricted Subsidiary the aggregate amount of
Investments (other than Permitted Investments) made by the Company or
any Restricted Subsidiary in such Unrestricted Subsidiary after the
Issue Date; and
(D) in the case of any disposition or repayment of any Investment
constituting a Restricted Payment (without duplication of any amount
deducted in calculating the amount of Investments at any time
outstanding included in the amount of Restricted Payments), an amount
in the aggregate equal to the lesser of the return of capital,
repayment or other proceeds with respect to all such Investments and
the initial amount of all such Investments.
(b) The provisions of the foregoing paragraph (a) will not prohibit any of
the following (each, a "Permitted Payment"):
(i) any purchase, redemption, repurchase, defeasance or other acquisition
or retirement of Capital Stock of the Company or Subordinated Obligations
made by exchange (including any such exchange pursuant to the exercise of a
conversion right or privilege in connection with which cash is paid in lieu
of the issuance of fractional shares) for, or out of the proceeds of the
substantially concurrent issuance or sale of, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold
to a Subsidiary) or a substantially concurrent capital contribution to the
Company; provided, however, that the Net Cash Proceeds from such issuance,
sale or capital contribution shall be excluded in subsequent calculations
under clause (B) of the preceding paragraph (a);
(ii) any purchase, redemption, repurchase, defeasance or other
acquisition or retirement of Subordinated Obligations (x) made by exchange
for, or out of the proceeds of the substantially concurrent issuance or
sale of, Indebtedness of either Issuer or any Note Guarantor or Refinancing
Indebtedness Incurred in compliance with the covenant described under "--
Limitation on Indebtedness," (y) from Net Available Cash to the extent
permitted by the covenant described under "--Limitation on Sales of Assets
and Subsidiary Stock" or (z) to the extent required by the agreement
governing such Subordinated Obligations, following the occurrence of a
Change of Control (or other similar event described therein as a "change of
control"), but only if the Company shall have complied with the covenant
described under "--Change of Control" and, if required, purchased all Notes
tendered pursuant to the offer to repurchase all the Notes required
thereby, prior to purchasing or repaying such Subordinated Obligations;
(iii) dividends paid within 60 days after the date of declaration
thereof if at such date of declaration such dividend would have complied
with the preceding paragraph (a);
(iv) Investments or other Restricted Payments in an aggregate amount
outstanding at any time not to exceed the amount of Excluded Contributions;
provided, however, that such Excluded Contributions shall not include any
Excluded Contribution the proceeds of which were used to finance the
acquisition of assets from any Person in a Related Business or the merger
or consolidation of such a Person into or with the Company or any
Restricted Subsidiary pursuant to clause (xi) of paragraph (b) of the
covenant described under "--Limitation on Indebtedness";
(v) payments by the Company to repurchase or otherwise acquire Capital
Stock (including any options, warrants or other rights in respect thereof),
from Management Investors (including loans, advances, dividends or
distributions by the Company to a Parent to permit such Parent to make any
such repurchase or other acquisition), such payments, loans, advances,
dividends or distributions not to exceed an amount (net of repayments of
any such loans or advances) equal to (1) $10.0 million, plus (2) $2.0
million multiplied by the number of calendar years that have commenced
since the Issue Date, plus (3) the Net Cash Proceeds received by the
Company since the Issue Date from, or as a capital contribution from, the
issuance or sale to Management Investors of Capital Stock (including any
options, warrants or other rights in respect thereof), to the extent such
Net Cash Proceeds are not included in any calculation under clause
(3)(B)(x) of the preceding paragraph (a);
(vi) the payment of (or loans, advances, dividends or distributions by
the Company to a Parent to pay) dividends on the common stock or equity of
the Company (or such Parent) following a public offering of
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such common stock or equity, in an amount not to exceed in any fiscal year
6% of the aggregate gross proceeds received by the Company in or from such
public offering;
(vii) Restricted Payments (including loans or advances) in an aggregate
amount which, when taken together with all Restricted Payments made
pursuant to this clause (vi) and then outstanding, net of repayments of any
such loans or advances, does not exceed $5.0 million at any time
outstanding;
(viii) payments by the Company or any Restricted Subsidiary to satisfy
obligations under the Management Agreements; and Permitted Parent Payments;
(ix) dividends or other distributions of Capital Stock, Indebtedness or
other securities of Unrestricted Subsidiaries; and
(x) the Transactions;
provided, that (A) in the case of clauses (iii), (vi) and (vii), the net
amount of any such Permitted Payment shall be included in subsequent
calculations of the amount of Restricted Payments, (B) in the case of clause
(v), at the time of any calculation of the amount of Restricted Payments, the
net amount of Permitted Payments that have then actually been made under
clause (v) that is in excess of 50% of the total amount of Permitted Payments
then permitted under clause (v) shall be included in such calculation of the
amount of Restricted Payments, (C) in all cases other than pursuant to clauses
(A) and (B) immediately above, the net amount of any such Permitted Payment
shall be excluded in subsequent calculations of the amount of Restricted
Payments and (D) solely with respect to clause (vii), no Default or Event of
Default shall have occurred or be continuing at the time of any such Permitted
Payment after giving effect thereto.
Limitation on Restrictions on Distributions from Restricted
Subsidiaries. The Company will not, and will not permit any Restricted
Subsidiary to, create or otherwise cause to exist or become effective any
consensual encumbrance or restriction on the ability of any Restricted
Subsidiary to (i) pay dividends or make any other distributions on its Capital
Stock or pay any Indebtedness or other obligations owed to the Company, (ii)
make any loans or advances to the Company or (iii) transfer any of its
property or assets to the Company, except any encumbrance or restriction:
(1) pursuant to an agreement or instrument in effect at or entered into
on the Issue Date (including the Senior Credit Facility), the Indenture or
the Notes;
(2) pursuant to any agreement or instrument of a Person, or relating to
Indebtedness or Capital Stock of a Person, which Person is acquired by or
merged or consolidated with or into the Company or any Restricted
Subsidiary, or which agreement or instrument is assumed by the Company or
any Restricted Subsidiary in connection with an acquisition of assets from
such Person, as in effect at the time of such acquisition, merger or
consolidation (except to the extent that such Indebtedness was incurred to
finance, or otherwise in connection with, such acquisition, merger or
consolidation); provided, however, that for purposes of this clause (2), if
a Person other than the Company or the relevant Issuer is the Successor,
any Subsidiary thereof or agreement or instrument of such Person or any
such Subsidiary shall be deemed acquired or assumed, as the case may be, by
the Company or a Restricted Subsidiary, as the case may be, when such
Person becomes the Successor;
(3) pursuant to an agreement or instrument (a "Refinancing Agreement")
effecting a refinancing of Indebtedness Incurred pursuant to, or that
otherwise extends, renews, refunds, refinances or replaces, an agreement or
instrument referred to in clause (1) or (2) of this covenant or this clause
(3) (an "Initial Agreement") or contained in any amendment, supplement or
other modification to an Initial Agreement (an "Amendment"); provided,
however, that the encumbrances and restrictions contained in any such
Refinancing Agreement or Amendment are not materially less favorable to the
Holders of the Notes taken as a whole than encumbrances and restrictions
contained in the Initial Agreement or Initial Agreements to which such
Refinancing Agreement or Amendment relates (as determined in good faith by
the Company);
(4) (A) that restricts in a customary manner the subletting, assignment
or transfer of any property or asset that is subject to a lease, license or
similar contract, or the assignment or transfer of any lease, license
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or other contract, (B) by virtue of any transfer of, agreement to transfer,
option or right with respect to, or Lien on, any property or assets of the
Company or any Restricted Subsidiary not otherwise prohibited by the
Indenture, (C) contained in mortgages, pledges or other security agreements
securing Indebtedness of a Restricted Subsidiary to the extent restricting
the transfer of the property or assets subject thereto, (D) pursuant to
customary provisions restricting dispositions of real property interests
set forth in any reciprocal
easement agreements of the Company or any Restricted Subsidiary, (E)
pursuant to Purchase Money Obligations that impose encumbrances or
restrictions on the property or assets so acquired, (F) on cash or other
deposits or net worth imposed by customers under agreements entered into in
the ordinary course of business, (G) pursuant to customary provisions
contained in agreements and instruments entered into in the ordinary course
of business (including leases and joint venture and other similar
agreements entered into in the ordinary course of business) or (H) that
arises or is agreed to in the ordinary course of business and does not
detract from the value of property or assets of the Company or any
Restricted Subsidiary in any manner material to the Company or such
Restricted Subsidiary;
(5) with respect to a Restricted Subsidiary (or any of its property or
assets) imposed pursuant to an agreement entered into for the direct or
indirect sale or disposition of all or substantially all the Capital Stock
or assets of such Restricted Subsidiary (or the property or assets that are
subject to such restriction) pending the closing of such sale or
disposition;
(6) required by any applicable law, rule, regulation or order or by any
regulatory authority having jurisdiction over the Company or any Restricted
Subsidiary or any of their businesses; or
(7) pursuant to an agreement or instrument (A) relating to any
Indebtedness permitted to be Incurred subsequent to the Issue Date pursuant
to the provisions of the covenant described under "--Limitation on
Indebtedness," if the Company determines that such encumbrance or
restriction will not cause the Issuers not to have the funds necessary to
pay the principal of or interest on the Notes, (B) relating to any sale of
receivables by a Foreign Subsidiary or (C) relating to Indebtedness of or a
Financing Disposition to or by any Receivables Entity.
Limitation on Sales of Assets and Subsidiary Stock. (a) The Company will
not, and will not permit any Restricted Subsidiary to, make any Asset
Disposition unless
(i) the Company or such Restricted Subsidiary receives consideration
(including by way of relief from, or by any other Person assuming
responsibility for, any liabilities, contingent or otherwise) at the time
of such Asset Disposition at least equal to the fair market value of the
shares and assets subject to such Asset Disposition, as such fair market
value may be determined (and shall be determined, to the extent such Asset
Disposition or any series of related Asset Dispositions involves aggregate
consideration in excess of $5.0 million) in good faith by the Board of
Directors, whose determination shall be conclusive (including as to the
value of all noncash consideration);
(ii) in the case of any Asset Disposition (or series of related Asset
Dispositions) having a fair market value of $2.5 million or more, at least
75% of the consideration therefor (excluding any consideration by way of
relief from, or by any other Person assuming responsibility for, any
liabilities, contingent or otherwise, that are not Indebtedness) received
by the Company or such Restricted Subsidiary is in the form of cash, and
provided that this clause (ii) shall not apply to any Asset Disposition (or
series of related Asset Dispositions), involving assets that accounted for
less than two percent of Consolidated EBITDA during the period of the most
recent four consecutive fiscal quarters ending prior to the date of such
Asset Disposition for which consolidated financial statements of the
Company are available; and
(iii) an amount equal to 100% of the Net Available Cash from such Asset
Disposition is applied by the Company (or any Restricted Subsidiary, as the
case may be) as follows:
(A) first, either (x) to the extent the Issuers elect (or to the
extent required by the terms of any Senior Indebtedness or any
Indebtedness of a Restricted Subsidiary), to prepay, repay or purchase
Senior Indebtedness or such Indebtedness of a Restricted Subsidiary (in
each case other than Indebtedness owed to the Company or a Restricted
Subsidiary) within 365 days after the date of such
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Asset Disposition, or (y) to the extent the Company or such Restricted
Subsidiary elects, to reinvest in Additional Assets (including by means
of an investment in Additional Assets by a Restricted Subsidiary with
Net Available Cash received by the Company or another Restricted
Subsidiary) within 365 days from the date of such Asset Disposition or,
if such reinvestment in Additional Assets is a project that is
authorized by the Board of Directors and committed to by the Company or
any Restricted Subsidiary and will take longer than such 365 days to
complete, the period of time necessary to complete such project;
(B) second, to the extent of the balance of such Net Available Cash
after application in accordance with clause (A) above (such balance,
the "Excess Proceeds"), to make an offer (or to cause the Issuers to
make an offer) to purchase Notes and (to the extent the Issuers elect,
or to the extent required by the terms thereof) to purchase, redeem or
repay any other Senior Subordinated Indebtedness, pursuant and subject
to the conditions of the Indenture and the agreements governing such
other Indebtedness; and
(C) third, to the extent of the balance of such Net Available Cash
after application in accordance with clauses (A) and (B) above, to fund
(to the extent consistent with any other applicable provision of the
Indenture) any general corporate purpose (including the repurchase,
repayment or other acquisition or retirement of any Subordinated
Obligations);
provided, however, that in connection with any prepayment, repayment or
purchase of Indebtedness pursuant to clause (A)(x) or (B) above, the Company
or such Restricted Subsidiary will retire such Indebtedness and will cause the
related loan commitment (if any) to be permanently reduced in an amount equal
to the principal amount so prepaid, repaid or purchased.
Notwithstanding the foregoing provisions of this covenant, the Company and
the Restricted Subsidiaries shall not be required to apply any Net Available
Cash in accordance with this covenant except to the extent that the aggregate
Net Available Cash from all Asset Dispositions that is not applied in
accordance with this covenant exceeds $10.0 million. If the aggregate
principal amount of Notes and Senior Subordinated Indebtedness validly
tendered and not withdrawn (or otherwise subject to purchase, redemption or
repayment) in connection with an offer pursuant to clause (B) above exceeds
the Excess Proceeds, the Excess Proceeds will be apportioned between the Notes
and such Senior Subordinated Indebtedness, with the portion of the Excess
Proceeds payable in respect of the Notes to equal the lesser of (x) the Excess
Proceeds amount multiplied by a fraction, the numerator of which is the
outstanding principal amount of the Notes and the denominator of which is the
sum of the outstanding principal amount of the Notes and the outstanding
principal amount of the relevant Senior Subordinated Indebtedness, and (y) the
aggregate principal amount of Notes validly tendered and not withdrawn.
For the purposes of clause (ii) of paragraph (a) above, the following are
deemed to be cash: (1) Temporary Cash Investments and Cash Equivalents, (2)
the assumption of Indebtedness of the Company (other than Disqualified Stock
of the Company) or any Restricted Subsidiary and the release of the Company or
such Restricted Subsidiary from all liability on payment of the principal
amount of such Indebtedness in connection with such Asset Disposition, (3)
Indebtedness of any Restricted Subsidiary that is no longer a Restricted
Subsidiary as a result of such Asset Disposition, to the extent that the
Company and each other Restricted Subsidiary are released from any Guarantee
of payment of the principal amount of such Indebtedness in connection with
such Asset Disposition, (4) securities received by the Company or any
Restricted Subsidiary from the transferee that are converted by the Company or
such Restricted Subsidiary into cash and (5) consideration consisting of
Indebtedness of the Company or any Restricted Subsidiary.
(b) In the event of an Asset Disposition that requires the purchase of Notes
pursuant to clause (iii)(B) of paragraph (a) above, the Issuers will be
required to purchase (on a several basis in proportion to each Issuer's
obligations in respect of the Notes) Notes tendered pursuant to an offer by
the Issuers for the Notes (the "Offer"), at a purchase price of 100% of their
principal amount plus accrued and unpaid interest to the Purchase Date, in
accordance with the procedures (including prorating in the event of
oversubscription) set forth in the Indenture. If the aggregate purchase price
of the Notes tendered pursuant to the Offer is less than the Net Available
Cash allotted to the purchase of Notes, the remaining Net Available Cash will
be available to the
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Company and its Restricted Subsidiaries for use in accordance with clause
(iii)(B) of paragraph (a) above (to repay Senior Subordinated Indebtedness) or
clause (iii)(C) of paragraph (a) above. The Issuers shall not be required to
make an Offer for Notes pursuant to this covenant if the Net Available Cash
available therefor (after application of the proceeds as provided in clause
(iii)(A) of paragraph (a) above) is less than $10.0 million for any particular
Asset Disposition (which lesser amounts shall be carried forward for purposes
of determining whether an Offer is required with respect to the Net Available
Cash from any subsequent Asset Disposition).
(c) The Issuers will comply, to the extent applicable, with the requirements
of Section 14(e) of the Exchange Act and any other securities laws or
regulations in connection with the repurchase of Notes pursuant to this
covenant. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this covenant, the Issuers will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under this covenant by virtue thereof.
Limitation on Transactions With Affiliates. (a) The Company will not, and
will not permit any Restricted Subsidiary to, directly or indirectly, enter
into or conduct any transaction or series of related transactions (including
the purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of the Company (an "Affiliate Transaction") unless
(i) the terms of such Affiliate Transaction are not materially less favorable
to the Company or such Restricted Subsidiary, as the case may be, than those
that could be obtained at the time in a transaction with a Person who is not
such an Affiliate, and (ii) if such Affiliate Transaction involves aggregate
consideration in excess of $5.0 million, the terms of such Affiliate
Transaction have been approved by a majority of the Disinterested Directors.
For purposes of this paragraph, any Affiliate Transaction shall be deemed to
have satisfied the requirements set forth in this paragraph if (x) such
Affiliate Transaction is approved by a majority of the Disinterested Directors
or (y) in the event there are no Disinterested Directors, a fairness opinion
is provided by a nationally recognized appraisal or investment banking firm
with respect to such Affiliate Transaction.
(b) The provisions of the preceding paragraph (a) will not apply to:
(i) any Restricted Payment Transaction,
(ii) (1) the entering into, maintaining or performance of any employment
contract, collective bargaining agreement, benefit plan, program or
arrangement, related trust agreement or any other similar arrangement for
or with any employee, officer or director heretofore or hereafter entered
into in the ordinary course of business, including vacation, health,
insurance, deferred compensation, severance, retirement, savings or other
similar plans, programs or arrangements, (2) the payment of compensation,
performance of indemnification or contribution obligations, or any
issuance, grant or award of stock, options, other equity-related interests
or other securities, to employees, officers or directors in the ordinary
course of business, (3) the payment of fees to directors of the Company or
any of its Restricted Subsidiaries, (4) any transaction with an officer or
director in the ordinary course of business not involving more than
$100,000 in any one case, or (5) Management Advances and payments in
respect thereof,
(iii) any transaction with the Company, any Restricted Subsidiary or any
Receivables Entity,
(iv) any transaction arising out of agreements or instruments in
existence on the Issue Date, and any payments made pursuant thereto,
(v) execution, delivery and performance of the Management Agreements,
including (1) payment to CDR or any Affiliate of CDR of a fee of $2.7
million plus out-of-pocket expenses in connection with the Transactions,
and (2) payment to CDR or any Affiliate of CDR of fees of up to $1.0
million in any fiscal year plus all out-of-pocket expenses incurred by CDR
or any such Affiliate in connection with its performance of management
consulting, monitoring, financial advisory or other services with respect
to the Company and its Restricted Subsidiaries,
(vi) the Transactions, all transactions in connection therewith
(including the financing thereof), and, without duplication of clause (v)
above, all fees or expenses paid or payable in connection with the
Transactions,
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(vii) any transaction in the ordinary course of business on terms not
materially less favorable to the Company or the relevant Restricted
Subsidiary than those that could be obtained at the time in a transaction
with a Person who is not an Affiliate of the Company, and
(viii) any transaction in the ordinary course of business, or approved by
a majority of the Board of Directors, between the Company or any Restricted
Subsidiary and any Affiliate of the Company controlled by the Company that
is a joint venture or similar entity; provided, however, that no other
Affiliate of the Company (other than a Restricted Subsidiary) has any
Investment in such joint venture or similar entity.
Limitation on Liens. The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, create or permit to exist
any Lien (other than Permitted Liens) on any of its property or assets
(including Capital Stock of any other Person), whether owned on the date of
the Indenture or thereafter acquired, securing any Indebtedness of either
Issuer or any Note Guarantor that by its terms is expressly subordinated in
right of payment to or ranks pari passu in right of payment with the Notes or
such Note Guarantor's Note Guarantee (the "Initial Lien"), unless
contemporaneously therewith effective provision is made to secure the
Indebtedness of such Issuer or Note Guarantor due under the Indenture and the
Notes or, in respect of Liens on any Restricted Subsidiary's property or
assets, any Note Guarantee of such Restricted Subsidiary, equally and ratably
with such obligation for so long as such obligation is so secured by such
Initial Lien. Any such Lien thereby created in favor of the Notes or any such
Note Guarantee will be automatically and unconditionally released and
discharged upon (i) the release and discharge of the Initial Lien to which it
relates, or (ii) any sale, exchange or transfer to any Person not an Affiliate
of the Company of the property or assets secured by such Initial Lien, or of
all of the Capital Stock held by the Company or any Restricted Subsidiary in,
or all or substantially all the assets of, any Restricted Subsidiary creating
such Lien.
Future Subsidiary Guarantors. Except as described below, the Company will
cause each U.S. Subsidiary of JCI that is organized or acquired by JCI after
the Issue Date to execute and deliver to the Trustee a supplemental indenture
or other instrument pursuant to which such Subsidiary will guarantee payment
of the Guaranteed JCI Obligations, whereupon such Subsidiary will become a
Subsidiary Guarantor. The Company will also cause each Restricted Subsidiary
of Jafra S.A. that is organized or acquired by Jafra S.A. after the Issue Date
to execute and deliver to the Trustee a supplemental indenture or other
instrument pursuant to which such Subsidiary will guarantee payment of the
Guaranteed Jafra S.A. Obligations, whereupon such Subsidiary will become a
Subsidiary Guarantor. The Company will not be required to cause any U.S.
Subsidiary of JCI to become a Subsidiary Guarantor unless and until such time
as such Subsidiary, together with any other U.S. Subsidiary of JCI that has
not then become a Subsidiary Guarantor, accounts for two percent or more of
Consolidated Total Assets. In addition, the Company may cause any Subsidiary
thereof that is not a Subsidiary Guarantor so to guarantee payment of the
Guaranteed Note Obligations of either Issuer and become a Subsidiary
Guarantor.
Subsidiary Guarantees will be subject to termination and discharge under
certain circumstances. See "--Note Guarantees."
SEC Reports. Notwithstanding that the Company may not be required to be or
remain subject to the reporting requirements of Section 13(a) or 15(d) of the
Exchange Act applicable to a "foreign private issuer" (as such term is defined
in Rule 3b-4 under the Exchange Act), from and after the date on which the
Company first becomes subject to such reporting requirements, the Company will
file with the SEC (unless such filing is not permitted under the Exchange Act
or by the SEC), so long as Notes are outstanding, the following reports by the
dates indicated (or, in the case of the first such report, if later, the date
that is 45 days after the effectiveness of a registration statement in respect
of Notes or Exchange Notes, as the case may be): (i) within 120 days from the
end of each fiscal year, an annual report on Form 20-F (or any successor form)
containing the information required to be contained therein for such fiscal
year, and (ii) within 60 days after the end of each of the first three
quarters in each fiscal year, quarterly reports on Form 6-K containing
unaudited financial statements (including a balance sheet and statement of
income, changes in stockholders' equity and cash flows) and Management's
Discussion and Analysis of Financial Condition and Results of Operations for
and as of the end
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of such quarters (with comparable financial statements for such quarter of the
immediately preceding fiscal year). The Company will also, within 15 days
after the date on which the Company files such reports, transmit by mail to
all Holders, as their names and addresses appear in the Note Register, and to
the Trustee copies of any such information, documents and reports (without
exhibits) (or, in lieu of one or more of the quarterly reports for fiscal
1998, a registration statement filed with the SEC under the Securities Act or
any amendment thereto, provided such registration statement or amendment
contains the information that would have been included in each such report).
The Company will be deemed to have satisfied such requirements if a Parent
files and provides reports, documents and information of the types otherwise
so required to be filed by the Company, or of the types required to be filed
by a U.S. issuer with the SEC pursuant to Section 13(a) or 15(d) of the
Exchange Act, in each case within the applicable time periods, and the Company
is not required to file such reports, documents and information separately
under the applicable rules and regulations of the SEC (after giving effect to
any exemptive relief) because of the filings by such Parent. The Company also
will comply with the other provisions of TIA (S) 314(a).
MERGER AND CONSOLIDATION
The Company will not, and will not permit either Issuer to, consolidate with
or merge with or into, or convey, transfer or lease all or substantially all
its assets to, any Person, unless: (i) the resulting, surviving or transferee
Person (the "Successor") will be a Person organized and existing under the
laws of the United States of America, any State thereof or the District of
Columbia, or (in the case of the Company only) the Cayman Islands, Luxembourg,
Kingdom of the Netherlands (including the Netherlands Antilles) or any other
member of the European Union, or (in the case of Jafra S.A. only) Mexico, and
the Successor (if not the Company or such Issuer) will expressly assume all
the obligations of the Company or such Issuer under the Company's Note
Guarantee (in the case of the Company) or the Notes (in the case of such
Issuer) and the Indenture by executing and delivering to the Trustee a
supplemental indenture or one or more other documents or instruments in form
reasonably satisfactory to the Trustee; (ii) immediately after giving effect
to such transaction (and treating any Indebtedness that becomes an obligation
of the Successor or any Restricted Subsidiary as a result of such transaction
as having been Incurred by the Successor or such Restricted Subsidiary at the
time of such transaction), no Default will have occurred and be continuing;
(iii) immediately after giving effect to such transaction, either (A) the
Company (or, if applicable, its Successor) could Incur at least $1.00 of
additional Indebtedness pursuant to paragraph (a) of the covenant described
under "--Certain Covenants--Limitation on Indebtedness," or (B) the
Consolidated Coverage Ratio of the Company (or, if applicable, its Successor)
would equal or exceed the Consolidated Coverage Ratio of the Company
immediately prior to giving effect to such transaction; (iv) each Note
Guarantor (other than any party to any such consolidation or merger) shall
have delivered a supplemental indenture or other document or instrument in
form reasonably satisfactory to the Trustee, confirming its Note Guarantee;
and (v) the Company will have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each to the effect that such
consolidation, merger or transfer complies with the provisions described in
this paragraph; provided that (x) in giving such opinion such counsel may rely
on an Officer's Certificate as to compliance with the foregoing clauses (ii)
and (iii) and as to any matters of fact, and (y) no Opinion of Counsel will be
required for a consolidation, merger or transfer described in the last
paragraph of this covenant. Any Indebtedness that becomes an obligation of the
Company or any Restricted Subsidiary (or that is deemed to be Incurred by any
Restricted Subsidiary that becomes a Restricted Subsidiary) as a result of any
such transaction undertaken in compliance with this covenant, and any
Refinancing Indebtedness with respect thereto, shall be deemed to have been
Incurred in compliance with the covenant described under "--Certain
Covenants--Limitation on Indebtedness."
The Successor will succeed to, and be substituted for, and may exercise
every right and power of, the Company or the relevant Issuer under the
Indenture, and thereafter the predecessor Company or the relevant Issuer shall
be relieved of all obligations and covenants under the Indenture.
Clauses (ii) and (iii) of the first paragraph of this "Merger and
Consolidation" section will not apply to any transaction in which (1) any
Restricted Subsidiary consolidates with, merges into or transfers all or part
of its properties and assets to the Company or an Issuer or (2) the Company
consolidates or merges with or into or
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transfers all or substantially all its assets to (x) an Affiliate incorporated
or organized for the purpose of reincorporating or reorganizing the Company in
another jurisdiction in the United States of America, Cayman Islands,
Luxembourg or Kingdom of the Netherlands (including the Netherlands Antilles)
or any other member of the European Union, or changing its legal structure to
a corporation or other entity or (y) a Restricted Subsidiary of the Company so
long as all assets of the Company and the Restricted Subsidiaries immediately
prior to such transaction (other than Capital Stock of such Restricted
Subsidiary) are owned by such Restricted Subsidiary and its Restricted
Subsidiaries immediately after the consummation thereof. The first paragraph
of this "Merger and Consolidation" section will not apply to the Mergers.
DEFAULTS
An Event of Default is defined in the Indenture as (i) a default in any
payment of interest on any Note when due, continued for 30 days, (ii) a
default in the payment of principal of any Note when due, whether at its
Stated Maturity, upon optional redemption, upon required repurchase, upon
declaration or otherwise, whether or not such payment is prohibited by the
provisions described under "--Ranking" above, (iii) the failure by the Company
or an Issuer to comply with its obligations under the covenants described
under "--Merger and Consolidation" above, (iv) the failure by the Company to
comply for 30 days after notice with any of its obligations under the
covenants described under "--Change of Control" above (other than a failure to
purchase Notes) and under "--Certain Covenants" (other than the covenant
described under "--Certain Covenants--SEC Reports"), (v) the failure by the
Company to comply for 60 days after notice with its other agreements contained
in the Notes or the Indenture, (vi) the failure by any Subsidiary Guarantor to
comply for 30 days after notice with its obligations under its Subsidiary
Guarantee, (vii) the failure by the Company, either of the Issuers or any
Significant Subsidiary to pay any Indebtedness within any applicable grace
period after final maturity or the acceleration of any such Indebtedness by
the holders thereof because of a default, if the total amount of such
Indebtedness so unpaid or accelerated exceeds $10.0 million or its foreign
currency equivalent (the "cross acceleration provision"), (viii) certain
events of bankruptcy, insolvency or reorganization of the Company, either of
the Issuers or a Significant Subsidiary (the "bankruptcy provisions"), (ix)
the rendering of any judgment or decree for the payment of money in an amount
(net of any insurance or indemnity payments actually received in respect
thereof prior to or within 90 days from the entry thereof, or to be received
in respect thereof in the event any appeal thereof shall be unsuccessful) in
excess of $10.0 million or its foreign currency equivalent against the
Company, either of the Issuers or a Significant Subsidiary that is not
discharged, or bonded or insured by a third Person, if such judgment or decree
remains outstanding for a period of 90 days following such judgment or decree
and is not discharged, waived or stayed (the "judgment default provision") or
(x) the failure of any Note Guarantee by the Company or a Subsidiary Guarantor
that is a Significant Subsidiary to be in full force and effect (except as
contemplated by the terms thereof or of the Indenture) or the denial or
disaffirmation in writing by the Company or any Subsidiary Guarantor that is a
Significant Subsidiary of its obligations under its Note Guarantee, if such
Default continues for 10 days.
The foregoing will constitute Events of Default whatever the reason for any
such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body.
However, a Default under clause (iv), (v) or (vi) will not constitute an
Event of Default until the Trustee or the Holders of at least 25% in principal
amount of the outstanding Notes notify the Company of the Default and the
Company does not cure such Default within the time specified in such clause
after receipt of such notice.
If an Event of Default (other than a Default relating to certain events of
bankruptcy, insolvency or reorganization of an Issuer) occurs and is
continuing, the Trustee by notice to the Issuers, or the Holders of at least a
majority in principal amount of the outstanding Notes by notice to the Issuers
and the Trustee, may declare the principal of and accrued but unpaid interest
on all the Notes to be due and payable, provided that so long as any
Designated Senior Indebtedness of an Issuer shall be outstanding, such
acceleration shall not be effective until the earlier to occur of (x) five
Business Days following delivery of a written notice of such acceleration of
the Notes to the Issuers and the holders of all such Designated Senior
Indebtedness or each Representative
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thereof and (y) the acceleration of any such Designated Senior Indebtedness.
Upon the effectiveness of such a declaration, such principal and interest will
be due and payable immediately. Notwithstanding the foregoing, if an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization
of the Issuers occurs and is continuing, the principal of and accrued interest
on all the Notes will become immediately due and payable without any
declaration or other act on the part of the Trustee or any Holders. Under
certain circumstances, the Holders of a majority in principal amount of the
outstanding Notes may rescind any such acceleration with respect to the Notes
and its consequences.
Notwithstanding the foregoing, in the event of a declaration of acceleration
in respect of the Notes because an Event of Default specified in clause (vii)
above shall have occurred and be continuing, such declaration of acceleration
of the Notes and such Event of Default and all consequences thereof (including
any acceleration or resulting payment default) shall be annulled, waived and
rescinded, automatically and without any action by the Trustee or the Holders,
and be of no further effect, if within 30 days after such Event of Default
arose (x) the Indebtedness that is the basis for such Event of Default has
been discharged, or (y) the holders thereof have rescinded or waived the
acceleration, notice or action (as the case may be) giving rise to such Event
of Default, or (z) the default in respect of such Indebtedness that is the
basis for such Event of Default has been cured.
Subject to the provisions of the Indenture relating to the duties of the
Trustee, in case an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under the
Indenture at the request or direction of any of the Holders unless such
Holders have offered to the Trustee reasonable indemnity or security against
any loss, liability or expense. Except to enforce the right to receive payment
of principal, premium (if any) or interest when due, no Holder may pursue any
remedy with respect to the Indenture or the Notes unless (i) such Holder has
previously given the Trustee notice that an Event of Default is continuing,
(ii) Holders of at least 25% in principal amount of the outstanding Notes have
requested the Trustee to pursue the remedy, (iii) such Holders have offered
the Trustee reasonable security or indemnity against any loss, liability or
expense, (iv) the Trustee has not complied with such request within 60 days
after the receipt of the request and the offer of security or indemnity and
(v) the Holders of a majority in principal amount of the outstanding Notes
have not given the Trustee a direction inconsistent with such request within
such 60-day period. Subject to certain restrictions, the Holders of a majority
in principal amount of the outstanding Notes are given the right to direct the
time, method and place of conducting any proceeding for any remedy available
to the Trustee or of exercising any trust or power conferred on the Trustee.
The Trustee, however, may refuse to follow any direction that conflicts with
law or the Indenture or that the Trustee determines is unduly prejudicial to
the rights of any other Holder or that would involve the Trustee in personal
liability. Prior to taking any action under the Indenture, the Trustee will be
entitled to indemnification satisfactory to it in its sole discretion against
all losses and expenses caused by taking or not taking such action.
The Indenture provides that if a Default occurs and is continuing and is
known to the Trustee, the Trustee must mail to each Holder notice of the
Default within 90 days after it occurs. Except in the case of a Default in the
payment of principal of, or premium (if any) or interest on, any Note, the
Trustee may withhold notice if and so long as a committee of its Trust
Officers in good faith determines that withholding notice is in the interests
of the Noteholders. In addition, the Issuers are required to deliver to the
Trustee, within 120 days after the end of each fiscal year, a certificate
indicating whether the signers thereof know of any Default that occurred
during the previous year. The Issuers also are required to deliver to the
Trustee, within 30 days after the occurrence thereof, written notice of any
event that would constitute certain Defaults, their status and what action the
Issuers are taking or propose to take in respect thereof.
AMENDMENTS AND WAIVERS
Subject to certain exceptions, the Indenture may be amended with the consent
of the Holders of a majority in principal amount of the Notes then outstanding
and any past default or compliance with any provisions may be waived with the
consent of the Holders of a majority in principal amount of the Notes then
outstanding (including in each case, consents obtained in connection with a
tender offer or exchange offer for Notes). However, without the consent of
each Holder of an outstanding Note affected, no amendment or waiver may (i)
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reduce the principal amount of Notes whose Holders must consent to an
amendment or waiver, (ii) reduce the rate of or extend the time for payment of
interest on any Note, (iii) reduce the principal of or extend the Stated
Maturity of any Note, (iv) reduce the premium payable upon the redemption of
any Note or change the date on which any Note may be redeemed as described
under "--Optional Redemption" above, (v) make any Note payable in money other
than that stated in the Note, (vi) make any change to the subordination
provisions of the Indenture that adversely affects the rights of any Holder in
any material respect, (vii) impair the right of any Holder to receive payment
of principal of and interest on such Holder's Notes on or after the due dates
therefor
or to institute suit for the enforcement of any payment on or with respect to
such Holder's Notes or (viii) make any change in the amendment or waiver
provisions described in this sentence. In addition, without the consent of the
Holders of 75% in principal amount of the Notes then outstanding, no amendment
may release the Company or either Issuer from any of its obligations under its
Note Guarantee, except in compliance with the terms thereof or of the
Indenture.
Without the consent of any Holder, the Company, the Issuers, the Trustee and
(as applicable) any Subsidiary Guarantor may amend the Indenture to cure any
ambiguity, omission, defect or inconsistency, to provide for the assumption by
a successor of the obligations of the Company or an Issuer under the
Indenture, to provide for uncertificated Notes in addition to or in place of
certificated Notes, to add Guarantees with respect to the Notes, to secure the
Notes, to confirm and evidence the release, termination or discharge of any
Guarantee or Lien with respect to or securing the Notes when such release,
termination or discharge is provided for under the Indenture, to add to the
covenants of the Company or an Issuer for the benefit of the Noteholders or to
surrender any right or power conferred upon the Company or an Issuer, to
provide that any Indebtedness that becomes or will become an obligation of a
Successor or a Note Guarantor pursuant to a transaction governed by the
provisions described under "--Merger and Consolidation" (and that is not a
Subordinated Obligation) is Senior Subordinated Indebtedness for purposes of
the Indenture, to provide for or confirm the issuance of Additional Notes, to
make any change that does not adversely affect the rights of any Holder, or to
comply with any requirement of the SEC in connection with the qualification of
the Indenture under the TIA or otherwise. However, no amendment may be made to
the subordination provisions of the Indenture that adversely affects the
rights of any holder of Senior Indebtedness then outstanding (which Senior
Indebtedness has been previously designated in writing by the Company to the
Trustee for this purpose) unless the holders of such Senior Indebtedness (or
any group or representative thereof authorized to give a consent) consent to
such change.
The consent of the Noteholders is not necessary under the Indenture to
approve the particular form of any proposed amendment or waiver. It is
sufficient if such consent approves the substance of the proposed amendment or
waiver. Until an amendment or waiver becomes effective, a consent to it by a
Noteholder is a continuing consent by such Noteholder and every subsequent
Holder of all or part of the related Note. Any such Noteholder or subsequent
holder may revoke such consent as to its Note by written notice to the Trustee
or the Company, received thereby before the date on which the Company
certifies to the Trustee that the Holders of the requisite principal amount of
Notes have consented to such amendment or waiver. After an amendment or waiver
under the Indenture becomes effective, the Company is required to mail to
Noteholders a notice briefly describing such amendment or waiver. However, the
failure to give such notice to all Noteholders, or any defect therein, will
not impair or affect the validity of the amendment or waiver.
DEFEASANCE
The Issuers at any time may concurrently (and not separately) terminate all
the respective obligations of the Company and the Issuers under the Notes and
the Indenture ("legal defeasance"), except for certain obligations, including
those relating to the defeasance trust and obligations to register the
transfer or exchange of the Notes, to replace mutilated, destroyed, lost or
stolen Notes and to maintain a registrar and paying agent in respect of the
Notes. The Issuers at any time may concurrently (and not separately) terminate
the respective obligations of the Company and the Issuers under certain
covenants under the Indenture, including the covenants described under "--
Certain Covenants" and "--Change of Control," the operation of the default
provisions relating to such covenants described under "--Defaults" above, the
operation of the cross acceleration provision, the bankruptcy
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provisions with respect to Subsidiaries and the judgment default provision
described under "--Defaults" above, and the limitations contained in clauses
(iii), (iv) and (v) under "--Merger and Consolidation" above ("covenant
defeasance"). If the Issuers exercise their legal defeasance option or its
covenant defeasance option, each Note Guarantor will be released from all its
obligations with respect to its Note Guarantee.
The Issuers may exercise their legal defeasance option notwithstanding their
prior exercise of their covenant defeasance option. If the Issuers exercise
their legal defeasance option, payment of the Notes may not be accelerated
because of an Event of Default with respect thereto. If the Issuers exercise
their covenant defeasance option, payment of the Notes may not be accelerated
because of an Event of Default specified in clause (iv), (v) (as it relates to
the covenants described under "--Certain Covenants" above), (vi), (vii),
(viii) (but only with
respect to events of bankruptcy, insolvency or reorganization of a Significant
Subsidiary), (ix) or (x) under "--Defaults" above or because of the failure of
the Company to comply with clause (iii), (iv) or (v) under "--Merger and
Consolidation" above.
Either defeasance option may be exercised to any redemption date or to the
maturity date for the Notes. In order to exercise either defeasance option,
the Issuers must irrevocably deposit in trust (the "defeasance trust") with
the Trustee money or U.S. Government Obligations, or a combination thereof,
for the payment of principal of, and premium (if any) and interest on, the
Notes to redemption or maturity, as the case may be, and must comply with
certain other conditions, including delivery to the Trustee of an Opinion of
Counsel to the effect that holders of the Notes will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit and
defeasance and will be subject to Federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred (and, in the case of legal defeasance
only, such Opinion of Counsel must be based on a ruling of the Internal
Revenue Service or other change in applicable Federal income tax law since the
Issue Date).
SATISFACTION AND DISCHARGE
The Indenture will be discharged and cease to be of further effect (except
as to surviving rights of registration of transfer or exchange of the Notes,
as expressly provided for in the Indenture) as to all outstanding Notes when
(i) either (a) all the Notes previously authenticated and delivered (other
than certain lost, stolen or destroyed Notes, and certain Notes for which
provision for payment was previously made and thereafter the funds have been
released to the Issuers) have been delivered to the Trustee for cancellation
or (b) all Notes not previously delivered to the Trustee for cancellation (x)
have become due and payable, (y) will become due and payable at their Stated
Maturity within one year or (z) are to be called for redemption within one
year under arrangements reasonably satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at the expense, of the
Issuers, (ii) the Issuers have irrevocably deposited or caused to be deposited
with the Trustee money, U.S. Government Obligations, or a combination thereof,
sufficient to pay and discharge the entire indebtedness on the Notes not
previously delivered to the Trustee for cancellation, for principal, premium,
if any, and interest to the date of deposit; (iii) the Issuers have paid or
caused to be paid all other sums payable under the Indenture by the Issuers;
and (iv) the Issuers have delivered to the Trustee an Officer's Certificate
and an Opinion of Counsel each to the effect that all conditions precedent
under the "Satisfaction and Discharge" section of the Indenture relating to
the satisfaction and discharge of the Indenture have been complied with,
provided that any such counsel may rely on any Officer's Certificate as to
matters of fact (including as to compliance with the foregoing clauses (i),
(ii) and (iii)).
NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES, INCORPORATORS AND
STOCKHOLDERS
No director, officer, employee, incorporator or stockholder of the Company,
the Issuers, any Note Guarantor or any Subsidiary of any thereof shall have
any liability for any obligation of the Company, the Issuers or any Note
Guarantor under the Indenture, the Notes or any Note Guarantee, or for any
claim based on, in respect of, or by reason of, any such obligation or its
creation. Each Noteholder, by accepting the Notes, waives and releases all
such liability. The waiver and release are part of the consideration for
issuance of the Notes.
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CONCERNING THE TRUSTEE
State Street Bank and Trust Company is to be the Trustee under the Indenture
and has been appointed by the Issuers as Registrar and Paying Agent with
regard to the Notes.
The Indenture will provide that, except during the continuance of an Event
of Default, the Trustee will perform only such duties as are set forth
specifically in the Indenture. During the existence of an Event of Default,
the Trustee will exercise such of the rights and powers vested in it under the
Indenture and use the same degree of care and skill in its exercise as a
prudent person would exercise under the circumstances in the conduct of such
person's own affairs.
The Indenture and the TIA will impose certain limitations on the rights of
the Trustee, should it become a creditor of the Company, an Issuer or a Note
Guarantor, to obtain payment of claims in certain cases or to realize on
certain property received by it in respect of any such claims, as security or
otherwise. The Trustee is permitted to engage in other transactions; provided,
however, that if it acquires any conflicting interest as described in the TIA,
it must eliminate such conflict, apply to the SEC for permission to continue
as Trustee with such conflict, or resign.
GOVERNING LAW
The Indenture provides that it and the Notes will be governed by, and
construed in accordance with, the laws of the State of New York, without
giving effect to any principles of conflict of laws to the extent that the
application of the law of another jurisdiction would be required thereby.
CERTAIN DEFINITIONS
"Additional Assets" means (i) any property or assets that replace the
property or assets that are the subject of an Asset Disposition; (ii) any
property or assets (other than Indebtedness and Capital Stock) to be used by
the Company or a Restricted Subsidiary in a Related Business; (iii) the
Capital Stock of a Person that is engaged in a Related Business and becomes a
Restricted Subsidiary as a result of the acquisition of such Capital Stock by
the Company or another Restricted Subsidiary; or (iv) Capital Stock of any
Person that at such time is a Restricted Subsidiary, acquired from a third
party.
"Affiliate" of any specified Person means any other Person, directly or
indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"all or substantially all" has the meaning given to such phrase in the
Revised Model Business Corporation Act and commentary thereto.
"Asset Disposition" means any sale, lease, transfer or other disposition of
shares of Capital Stock of a Restricted Subsidiary (other than Designated
Equity Interests, or (in the case of a Foreign Subsidiary) to the extent
required by applicable law), property or other assets (each referred to for
the purposes of this definition as a "disposition") by the Company or any of
its Restricted Subsidiaries (including any disposition by means of a merger,
consolidation or similar transaction), other than (i) a disposition to the
Company or any Restricted Subsidiary, (ii) a disposition in the ordinary
course of business, (iii) the sale or discount (with or without recourse, and
on customary or commercially reasonable terms) of accounts receivable or notes
receivable arising in the ordinary course of business, or the conversion or
exchange of accounts receivable for notes receivable, (iv) any Restricted
Payment Transaction, (v) a disposition that is governed by the provisions
described under "--Merger and Consolidation", (vi) any Financing Disposition,
(vii) any "fee in lieu" or other disposition of assets to any governmental
authority or agency that continue in use by the Company or any Restricted
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Subsidiary, so long as the Company or any Restricted Subsidiary may obtain
title to such assets upon reasonable notice by paying a nominal fee, (viii)
any exchange of like property pursuant to Section 1031 (or any successor
section) of the Code, (ix) any financing transaction with respect to property
built or acquired by the Company or any Restricted Subsidiary after the Issue
Date, including any sale/leaseback transaction or asset securitization, (x)
any disposition arising from foreclosure, condemnation or similar action with
respect to any property or other assets, (xi) any disposition of Capital
Stock, Indebtedness or other securities of an Unrestricted Subsidiary, (xii) a
disposition of Capital Stock of a Restricted Subsidiary pursuant to an
agreement or other obligation with or to a Person (other than the Company or a
Restricted Subsidiary) from whom such Restricted Subsidiary was acquired, or
from whom such Restricted Subsidiary acquired its business and assets (having
been newly formed in connection with such acquisition), entered into in
connection with such acquisition, (xiii) a disposition of not more than 5% of
the outstanding Capital Stock of a Foreign Subsidiary that has been approved
by the Board of Directors or (xiv) any disposition or series of related
dispositions for aggregate consideration not exceeding $1.0 million.
"Average Life" means, as of the date of determination, with respect to any
Indebtedness or Preferred Stock, the quotient obtained by dividing (i) the sum
of the products of the numbers of years from the date of determination to the
dates of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by (ii) the sum of all such payments.
"Bank Indebtedness" means (i) any and all amounts, whether outstanding on
the Issue Date or thereafter incurred, payable under or in respect of the
Senior Credit Facility, including principal, premium (if any), interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company, either Issuer or any
Restricted Subsidiary whether or not a claim for post-filing interest is
allowed in such proceedings), fees, charges, expenses, reimbursement
obligations, guarantees, other monetary obligations of any nature and all
other amounts payable thereunder or in respect thereof and (ii) all Hedging
Obligations arising in connection therewith to any party to the Senior Credit
Facility (or any affiliate thereof).
"Board of Directors" means the board of directors or other governing body of
the Company or any committee thereof duly authorized to act on behalf of such
board or governing body.
"Borrowing Base" means the sum (determined as of the end of the most
recently ended fiscal quarter for which consolidated financial statements of
the Company are available) of (1) 60% of Inventory of the Company and its
Restricted Subsidiaries and (2) 80% of Receivables of the Company and its
Restricted Subsidiaries.
"Business Day" means a day other than a Saturday, Sunday or other day on
which commercial banking institutions are authorized or required by law to
close in New York City.
"Capital Stock" of any Person means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any
Preferred Stock, but excluding any debt securities convertible into such
equity.
"Capitalized Lease Obligation" means an obligation that is required to be
classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP. The Stated Maturity of any Capitalized Lease
Obligation shall be the date of the last payment of rent or any other amount
due under the related lease.
"Cash Equivalents" means any of the following: (a) securities issued or
fully guaranteed or insured by the United States Government or any agency or
instrumentality thereof, (b) time deposits, certificates of deposit or
bankers' acceptances of (i) any lender under the Senior Credit Agreement or
(ii) any commercial bank having capital and surplus in excess of $500,000,000
and the commercial paper of the holding company of which is rated at least A-1
or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody's (or if at such time neither is issuing ratings, then a comparable
rating of another nationally recognized rating agency), (c)
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commercial paper rated at least A-1 or the equivalent thereof by S&P or at
least P-1 or the equivalent thereof by Moody's (or if at such time neither is
issuing ratings, then a comparable rating of another nationally recognized
rating agency) and (d) investments in money market funds complying with the
risk limiting conditions of Rule 2a-7 or any successor rule of the SEC under
the Investment Company Act of 1940, as amended.
"CDR" means Clayton, Dubilier & Rice, Inc.
"CDR Fund V" means Clayton, Dubilier & Rice Fund V Limited Partnership, a
Cayman Islands exempted limited partnership, and any successor in interest
thereto.
"Code" means the Internal Revenue Code of 1986, as amended.
"Company" means CDRJ Investments (Lux) S.A., a Luxembourg corporation, and
any successor in interest thereto.
"Consolidated Coverage Ratio" as of any date of determination means the
ratio of (i) the aggregate amount of Consolidated EBITDA of the Company and
its Restricted Subsidiaries for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which consolidated financial statements of the Company are available to (ii)
Consolidated Interest Expense for such four fiscal quarters (in each case,
determined, for each fiscal quarter (or portion thereof) of the four fiscal
quarters ending prior to the Issue Date, on a pro forma basis to give effect
to the Acquisition as if it had occurred at the beginning of such four-quarter
period); provided, that
(1) if since the beginning of such period the Company or any Restricted
Subsidiary has Incurred any Indebtedness that remains outstanding on such
date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness,
Consolidated EBITDA and Consolidated Interest Expense for such period shall
be calculated after giving effect on a pro forma basis to such Indebtedness
as if such Indebtedness had been Incurred on the first day of such period
(except that in making such computation, the amount of Indebtedness under
any revolving credit facility outstanding on the date of such calculation
shall be computed based on (A) the average daily balance of such
Indebtedness during such four fiscal quarters or such shorter period for
which such facility was outstanding or (B) if such facility was created
after the end of such four fiscal quarters, the average daily balance of
such Indebtedness during the period from the date of creation of such
facility to the date of such calculation),
(2) if since the beginning of such period the Company or any Restricted
Subsidiary has repaid, repurchased, redeemed, defeased or otherwise
acquired, retired or discharged any Indebtedness (each, a "Discharge")
since the beginning of the period or if the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio involves a Discharge of
Indebtedness (in each case other than Indebtedness Incurred under any
revolving credit facility unless such Indebtedness has been permanently
repaid), Consolidated EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving effect on a pro forma basis to such
Discharge of such Indebtedness, including with the proceeds of such new
Indebtedness, as if such discharge had occurred on the first day of such
period,
(3) if since the beginning of such period the Company or any Restricted
Subsidiary shall have disposed of any company, any business or any group of
assets constituting an operating unit of a business (any such disposition,
a "Sale"), the Consolidated EBITDA for such period shall be reduced by an
amount equal to the Consolidated EBITDA (if positive) attributable to the
assets that are the subject of such Sale for such period or increased by an
amount equal to the Consolidated EBITDA (if negative) attributable thereto
for such period and Consolidated Interest Expense for such period shall be
reduced by an amount equal to (A) the Consolidated Interest Expense
attributable to any Indebtedness of the Company or any Restricted
Subsidiary repaid, repurchased, redeemed, defeased or otherwise acquired,
retired or discharged with respect to the Company and its continuing
Restricted Subsidiaries in connection with such Sale for such period
(including through the assumption of such Indebtedness by another Person)
plus (B) if the Capital Stock of
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any Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Company and its continuing Restricted Subsidiaries are no
longer liable for such Indebtedness after such Sale,
(4) if since the beginning of such period the Company or any Restricted
Subsidiary (by merger, consolidation or otherwise) shall have made an
Investment in any Person that thereby becomes a Restricted Subsidiary, or
otherwise acquired any company, any business or any group of assets
constituting an operating unit of a business, including any such Investment
or acquisition occurring in connection with a transaction causing a
calculation to be made hereunder (any such Investment or acquisition, a
"Purchase"), Consolidated EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving pro forma effect thereto (including
the Incurrence of any related Indebtedness) as if such Purchase occurred on
the first day of such period, and
(5) if since the beginning of such period any Person became a Restricted
Subsidiary or was merged or consolidated with or into the Company or any
Restricted Subsidiary, and since the beginning of such period such Person
shall have Discharged any Indebtedness or made any Sale or Purchase that
would have required an adjustment pursuant to clause (2), (3) or (4) above
if made by the Company or a Restricted Subsidiary
during such period, Consolidated EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving pro forma effect thereto
as if such Discharge, Sale or Purchase occurred on the first day of such
period.
For purposes of this definition, whenever pro forma effect is to be given to
any Sale, Purchase or other transaction, or the amount of income or earnings
relating thereto and the amount of Consolidated Interest Expense associated
with any Indebtedness Incurred or repaid, repurchased, redeemed, defeased or
otherwise acquired, retired or discharged in connection therewith, the pro
forma calculations in respect thereof (including in respect of anticipated
cost savings or synergies relating to any such Sale, Purchase or other
transaction) shall be as determined in good faith by a responsible financial
or accounting Officer of the Company. If any Indebtedness bears a floating
rate of interest and is being given pro forma effect, the interest expense on
such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any Interest Rate Agreement applicable to such Indebtedness). If any
Indebtedness bears, at the option of the Company or a Restricted Subsidiary, a
rate of interest based on a prime or similar rate, a eurocurrency interbank
offered rate or other fixed or floating rate, and such Indebtedness is being
given pro forma effect, the interest expense on such Indebtedness shall be
calculated by applying such optional rate as the Company or such Restricted
Subsidiary may designate. If any Indebtedness that is being given pro forma
effect was Incurred under a revolving credit facility, the interest expense on
such Indebtedness shall be computed based upon the average daily balance of
such Indebtedness during the applicable period. Interest on a Capitalized
Lease Obligation shall be deemed to accrue at an interest rate determined in
good faith by a responsible financial or accounting officer of the Company to
be the rate of interest implicit in such Capitalized Lease Obligation in
accordance with GAAP.
"Consolidated EBITDA" means, for any period, the Consolidated Net Income for
such period, plus the following to the extent deducted in calculating such
Consolidated Net Income: (i) provision for all taxes (whether or not paid,
estimated or accrued) based on income, profits or capital, (ii) Consolidated
Interest Expense and any Receivables Fees, (iii) depreciation, amortization
(including amortization of goodwill and intangibles and amortization and
write-off of financing costs) and all other non-cash charges or non-cash
losses, and (iv) any expenses or charges related to any Equity Offering,
Investment or Indebtedness permitted by the Indenture (whether or not
consummated or incurred).
"Consolidated Interest Expense" means, for any period, (i) the total
interest expense of the Company and its Restricted Subsidiaries to the extent
deducted in calculating Consolidated Net Income, net of any interest income of
the Company and its Restricted Subsidiaries, including any such interest
expense consisting of (a) interest expense attributable to Capitalized Lease
Obligations, (b) amortization of debt discount, (c) interest in respect of
Indebtedness of any other Person that has been Guaranteed by the Company or
any Restricted
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Subsidiary, but only to the extent that such interest is actually paid by the
Company or any Restricted Subsidiary, (d) non-cash interest expense, (e) the
interest portion of any deferred payment obligation, and (f) commissions,
discounts and other fees and charges owed with respect to letters of credit
and bankers' acceptance financing, plus (ii) Preferred Stock dividends paid in
cash in respect of Disqualified Stock of the Company held by Persons other
than the Company or a Restricted Subsidiary and minus (iii) to the extent
otherwise included in such interest expense referred to in clause (i) above,
Receivables Fees and amortization or write-off of financing costs, in each
case under clauses (i) through (iii) as determined on a Consolidated basis in
accordance with GAAP; provided, however, that gross interest expense shall be
determined after giving effect to any net payments made or received by the
Company and its Restricted Subsidiaries with respect to Interest Rate
Agreements.
"Consolidated Net Income" means, for any period, the net income (loss) of
the Company and its Restricted Subsidiaries, determined on a consolidated
basis in accordance with GAAP and before any reduction in respect of Preferred
Stock dividends; provided, however, that there shall not be included in such
Consolidated Net Income:
(i) any net income (loss) of any Person if such Person is not a
Restricted Subsidiary, except that (A) subject to the limitations contained
in clause (iv) below, the Company's equity in the net income of any
such Person for such period shall be included in such Consolidated Net
Income up to the aggregate amount actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a dividend
or other distribution (subject, in the case of a dividend or other
distribution to a Restricted Subsidiary, to the limitations contained in
clause (iii) below) and (B) the Company's equity in the net loss of such
Person shall be included to the extent of the aggregate Investment of the
Company or any of its Restricted Subsidiaries in such Person,
(ii) any net income (loss) of any Person acquired by the Company or a
Restricted Subsidiary in a pooling of interests transaction for any period
prior to the date of such acquisition,
(iii) any net income (loss) of any Restricted Subsidiary that is not an
Issuer or a Subsidiary Guarantor if such Restricted Subsidiary is subject
to restrictions, directly or indirectly, on the payment of dividends or the
making of similar distributions by such Restricted Subsidiary, directly or
indirectly, to the Company by operation of the terms of such Restricted
Subsidiary's charter or any agreement, instrument, judgment, decree, order,
statute or governmental rule or regulation applicable to such Restricted
Subsidiary or its stockholders (other than (x) restrictions that have been
waived or otherwise released, (y) restrictions pursuant to the Notes or the
Indenture and (z) restrictions in effect on the Issue Date with respect to
a Restricted Subsidiary and other restrictions with respect to such
Restricted Subsidiary that taken as a whole are not materially less
favorable to the Noteholders than such restrictions in effect on the Issue
Date), except that (A) subject to the limitations contained in clause (iv)
below, the Company's equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net
Income up to the aggregate amount of any dividend or distribution that was
or that could have been made by such Restricted Subsidiary during such
period to the Company or another Restricted Subsidiary (subject, in the
case of a dividend that could have been made to another Restricted
Subsidiary, to the limitation contained in this clause) and (B) the net
loss of such Restricted Subsidiary shall be included to the extent of the
aggregate Investment of the Company or any of its other Restricted
Subsidiaries in such Restricted Subsidiary,
(iv) any gain or loss realized upon the sale or other disposition of any
asset of the Company or any Restricted Subsidiary (including pursuant to
any sale/leaseback transaction) that is not sold or otherwise disposed of
in the ordinary course of business (as determined in good faith by the
Board of Directors),
(v) any item classified as an extraordinary, unusual or nonrecurring
gain, loss or charge (including (a) any compensation expense for stock
options that will be cashed out, converted, exchanged or otherwise retired
in connection with the Acquisition, (b) any charge or expense incurred for
employee bonuses in connection with the Acquisition, and (c) fees, expenses
and charges associated with the Acquisition or any acquisition, merger or
consolidation after the Issue Date),
(vi) the cumulative effect of a change in accounting principles,
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(vii) all deferred financing costs written off and premiums paid in
connection with any early extinguishment of Indebtedness,
(viii) any unrealized gains or losses in respect of Currency Agreements,
(ix) any unrealized foreign currency transaction gains or losses in
respect of Indebtedness of any Person denominated in a currency other than
the functional currency of such Person, and
(x) any non-cash compensation charge arising from any grant of stock,
stock options or other equity-based awards.
In the case of any unusual or nonrecurring gain, loss or charge not included
in Consolidated Net Income pursuant to clause (v) above in any determination
thereof, the Company will deliver an Officer's Certificate to the Trustee
promptly after the date on which Consolidated Net Income is so determined,
setting forth the nature and amount of such unusual or nonrecurring gain, loss
or charge.
"Consolidated Total Assets" means, as of any date of determination, the
total assets shown on the consolidated balance sheet of the Company and its
Restricted Subsidiaries as of the most recent date for which such a balance
sheet is available, determined on a consolidated basis in accordance with GAAP
(and, in the case of any determination relating to any Incurrence of
Indebtedness or any Investment, on a pro forma basis including any property or
assets being acquired in connection therewith), provided that for purposes of
paragraph (b) of the covenant described in "--Certain Covenants--Limitation on
Indebtedness" and the definition of "Permitted Investments," Consolidated
Total Assets shall not be less than $258.5 million. At December 31, 1997, on a
pro forma basis giving effect to the Acquisition and the issuance of the
Notes, Consolidated Total Assets was $258.5 million. See "Unaudited Pro Forma
Combined Financial Statements."
"Consolidation" means the consolidation of the accounts of each of the
Restricted Subsidiaries with those of the Company in accordance with GAAP;
provided, however, that "Consolidation" will not include consolidation of the
accounts of any Unrestricted Subsidiary, but the interest of the Company or
any Restricted Subsidiary in any Unrestricted Subsidiary will be accounted for
as an investment. The term "Consolidated" has a correlative meaning.
"Currency Agreement" means, in respect of a Person, any foreign exchange
contract, currency swap agreement or other similar agreement or arrangements
(including derivative agreements or arrangements), as to which such Person is
a party or a beneficiary.
"Default" means any event or condition that is, or after notice or passage
of time or both would be, an Event of Default.
"Designated Equity Interests" means (i) directors' qualifying shares, or
(ii) in the case of a Foreign Subsidiary, Capital Stock required by law to be
held by a Person other than the Company or any Restricted Subsidiary.
"Designated Senior Indebtedness" with respect to a Person means (i) the Bank
Indebtedness and (ii) any other Senior Indebtedness of such Person that, at
the date of determination, has an aggregate principal amount equal to or under
which, at the date of determination, the holders thereof are committed to lend
up to, at least $10.0 million and is specifically designated by such Person in
an agreement or instrument evidencing or governing such Senior Indebtedness as
"Designated Senior Indebtedness" for purposes of the Indenture.
"Disinterested Director" means, with respect to any Affiliate Transaction, a
member of the Board of Directors having no material direct or indirect
financial interest in or with respect to such Affiliate Transaction. A member
of the Board of Directors shall not be deemed to have such a financial
interest in any Affiliate Transaction by reason of such member's holding
Capital Stock of the Company or a Parent or any options, warrants or other
rights in respect of such Capital Stock.
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"Disqualified Stock" means, with respect to any Person, any Capital Stock
(other than Management Stock) that by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable or
exercisable) or upon the happening of any event (other than following the
occurrence of a Change of Control or other similar event described under such
terms as a "change of control," or any Asset Disposition) (i) matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
(ii) is convertible or exchangeable for Indebtedness or Disqualified Stock or
(iii) is redeemable at the option of the holder thereof (other than following
the occurrence of a Change of Control or other similar event described under
such terms as a "change of control," or any Asset Disposition), in whole or in
part, in each case on or prior to the final Stated Maturity of the Notes.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Excluded Contribution" means Net Cash Proceeds, or the fair value, as
determined in good faith by the Board of Directors, of property or assets,
received by the Company as capital contributions to the Company after the
Issue Date or from the issuance or sale (other than to a Subsidiary of the
Company) of Capital Stock (other
than Disqualified Stock) of the Company, in each case to the extent designated
as an Excluded Contribution pursuant to an Officer's Certificate of the
Company and not previously included in the calculation set forth in
subparagraph (a)(3)(B)(x) of the covenant described under "--Certain
Covenants--Limitation on Restricted Payments" for purposes of determining
whether a Restricted Payment may be made.
"Financing Disposition" means any sale, transfer, conveyance or other
disposition of property or assets by the Company or any Subsidiary thereof to
any Receivables Entity, or by any Receivables Subsidiary, in each case in
connection with the Incurrence by a Receivables Entity of Indebtedness, or
obligations to make payments to the obligor on Indebtedness, which may be
secured by a Lien in respect of such property or assets.
"Foreign Subsidiary" means (a) any Restricted Subsidiary of the Company that
is not organized under the laws of the United States of America or any state
thereof or the District of Columbia and (b) any Restricted Subsidiary of the
Company that has no material assets other than securities of one or more
Foreign Subsidiaries, and other assets relating to an ownership interest in
any such securities or Subsidiaries.
"GAAP" means generally accepted accounting principles in the United States
of America as in effect on the Issue Date (for purposes of the definitions of
the terms "Consolidated Coverage Ratio," "Consolidated EBITDA," "Consolidated
Interest Expense," "Consolidated Net Income" and "Consolidated Total Assets,"
all defined terms in the Indenture to the extent used in or relating to any of
the foregoing definitions, and all ratios and computations based on any of the
foregoing definitions) and as in effect from time to time (for all other
purposes of the Indenture), including those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other
entity as approved by a significant segment of the accounting profession. All
ratios and computations based on GAAP contained in the Indenture shall be
computed in conformity with GAAP.
"Guarantee" means any obligation, contingent or otherwise, of any Person
directly or indirectly guaranteeing any Indebtedness or other obligation of
any other Person; provided, however, that the term "Guarantee" shall not
include endorsements for collection or deposit in the ordinary course of
business. The term "Guarantee" used as a verb has a corresponding meaning.
"Hedging Obligations" of any Person means the obligations of such Person
pursuant to any Interest Rate Agreement or Currency Agreement.
"Holder" or "Noteholder" means the Person in whose name a Note is registered
in the Register.
"Holding Company Expenses" means (i) costs (including all professional fees
and expenses) incurred by a Parent to comply with its reporting obligations
under federal or state laws or under the Indenture, including any reports
filed with respect to the Securities Act, Exchange Act or the respective rules
and regulations promulgated
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thereunder, (ii) indemnification obligations of a Parent owing to directors,
officers, employees or other Persons under its charter or by-laws or pursuant
to written agreements with any such Person, (iii) other operational expenses
of a Parent incurred in the ordinary course of business, and (iv) expenses
incurred by a Parent in connection with any public offering of Capital Stock
or Indebtedness (x) where the net proceeds of such offering are intended to be
received by or contributed or loaned to the Company or a Restricted
Subsidiary, or (y) in a prorated amount of such expenses in proportion to the
amount of such net proceeds intended to be so received, contributed or loaned,
or (z) otherwise on an interim basis prior to completion of such offering so
long as a Parent shall cause the amount of such expenses to be repaid to the
Company or the relevant Restricted Subsidiary out of the proceeds of such
offering promptly if completed.
"Incur" means issue, assume, enter into any Guarantee of, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock
of a Person existing at the time such Person becomes a Subsidiary (whether by
merger, consolidation, acquisition or otherwise) shall be deemed to be
Incurred by such Subsidiary at the time it becomes a Subsidiary. Accrual of
interest, the accretion of accreted value and the
payment of interest in the form of additional Indebtedness will not be deemed
to be an Incurrence of Indebtedness. Any Indebtedness issued at a discount
(including Indebtedness on which interest is payable through the issuance of
additional Indebtedness) shall be deemed Incurred at the time of original
issuance of the Indebtedness at the initial accreted amount thereof.
"Indebtedness" means, with respect to any Person on any date of
determination (without duplication):
(i) the principal of indebtedness of such Person for borrowed money,
(ii) the principal of obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments,
(iii) all reimbursement obligations of such Person in respect of letters
of credit or other similar instruments (the amount of such obligations
being equal at any time to the aggregate then undrawn and unexpired amount
of such letters of credit or other instruments plus the aggregate amount of
drawings thereunder that have not then been reimbursed),
(iv) all obligations of such Person to pay the deferred and unpaid
purchase price of property (except Trade Payables), which purchase price is
due more than one year after the date of placing such property in final
service or taking final delivery and title thereto,
(v) all Capitalized Lease Obligations of such Person,
(vi) the redemption, repayment or other repurchase amount of such Person
with respect to any Disqualified Stock of such Person or (if such Person is
a Subsidiary of the Company other than an Issuer or a Subsidiary Guarantor)
any Preferred Stock of such Subsidiary, but excluding, in each case, any
accrued dividends (the amount of such obligation to be equal at any time to
the maximum fixed involuntary redemption, repayment or repurchase price for
such Capital Stock, or if less (or if such Capital Stock has no such fixed
price), to the involuntary redemption, repayment or repurchase price
therefor calculated in accordance with the terms thereof as if then
redeemed, repaid or repurchased, and if such price is based upon or
measured by the fair market value of such Capital Stock, such fair market
value shall be as determined in good faith by the Board of Directors or the
board of directors or other governing body of the issuer of such Capital
Stock),
(vii) all Indebtedness of other Persons secured by a Lien on any asset of
such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of Indebtedness of such Person shall be
the lesser of (A) the fair market value of such asset at such date of
determination (as determined in good faith by the Company) and (B) the
amount of such Indebtedness of such other Persons,
(viii) all Indebtedness of other Persons to the extent Guaranteed by such
Person, and
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(ix) to the extent not otherwise included in this definition, net Hedging
Obligations of such Person (the amount of any such obligation to be equal
at any time to the termination value of such agreement or arrangement
giving rise to such Hedging Obligation that would be payable by such Person
at such time).
The amount of Indebtedness of any Person at any date shall be determined as
set forth above or otherwise provided in the Indenture, or otherwise shall
equal the amount thereof that would appear on a balance sheet of such Person
(excluding any notes thereto) prepared in accordance with GAAP.
"Interest Rate Agreement" means, with respect to any Person, any interest
rate protection agreement, interest rate future agreement, interest rate
option agreement, interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, interest rate hedge agreement or other similar
agreement or arrangement (including derivative agreements or arrangements), as
to which such Person is party or a beneficiary.
"Inventory" means goods held for sale or lease by a Person in the ordinary
course of business, net of any reserve for goods that have been segregated by
such Person to be returned to the applicable vendor for credit, as determined
in accordance with GAAP.
"Investment" in any Person by any other Person means any direct or indirect
advance, loan or other extension of credit (other than to customers,
suppliers, directors, officers or employees of any Person in the ordinary
course of business) or capital contribution (by means of any transfer of cash
or other property to others or any payment for property or services for the
account or use of others) to, or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by, such Person. For purposes
of the definition of "Unrestricted Subsidiary" and the covenant described
under "--Certain Covenants--Limitation on Restricted Payments," (i)
"Investment" shall include the portion (proportionate to the Company's equity
interest in such Subsidiary) of the fair market value of the net assets of any
Subsidiary of the Company at the time that such Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue
to have a permanent "Investment" in an Unrestricted Subsidiary in an amount
(if positive) equal to (x) the Company's "Investment" in such Subsidiary at
the time of such redesignation less (y) the portion (proportionate to the
Company's equity interest in such Subsidiary) of the fair market value of the
net assets of such Subsidiary at the time of such redesignation, (ii) any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer and (iii) in each case
under clause (i) or (ii) above, fair market value shall be as determined in
good faith by the Board of Directors. Guarantees shall not be deemed to be
Investments. The amount of any Investment outstanding at any time shall be the
original cost of such Investment, reduced (at the Company's option) by any
dividend, distribution, interest payment, return of capital, repayment or
other amount or value received in respect of such Investment; provided,
however, that to the extent that the amount of Restricted Payments outstanding
at any time is so reduced by any portion of any such amount or value that
would otherwise be included in the calculation of Consolidated Net Income,
such portion of such amount or value shall not be so included for purposes of
calculating the amount of Restricted Payments that may be made pursuant to
paragraph (a) of the covenant described under "--Certain Covenants--Limitation
on Restricted Payments."
"Investor" means CDR Fund V.
"Issue Date" means the first date on which Notes are issued.
"Jafra S.A. Subsidiary Guarantor" means each Restricted Subsidiary of Jafra
S.A. that enters into a Subsidiary Guarantee.
"JCI" means the U.S. Issuer.
"Lien" means any mortgage, pledge, security interest, encumbrance, lien or
charge of any kind (including any conditional sale or other title retention
agreement or lease in the nature thereof).
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"Management Advances" means (1) loans or advances made to directors,
officers or employees of a Parent, the Company or any Restricted Subsidiary
(x) in respect of travel, entertainment or moving-related expenses incurred in
the ordinary course of business, (y) in respect of moving-related expenses
incurred in connection with any closing or consolidation of any facility or
(z) in the ordinary course of business and (in the case of this clause (z))
not exceeding $2.5 million in the aggregate outstanding at any time, (2)
promissory notes of Management Investors acquired in connection with the
issuance of Management Stock to such Management Investors, (3) Management
Guarantees or (4) other guarantees of borrowings by Management Investors in
connection with the purchase of Management Stock, which guarantees are
permitted under the covenant described under "--Certain Covenants--Limitation
on Indebtedness."
"Management Agreements" means, collectively, the Consulting Agreement and
the Indemnification Agreement, each dated as of April 30, 1998, each between
the Company and CD&R (and its permitted successors and assigns thereunder), as
each may be amended, supplemented, waived or otherwise modified from time to
time in accordance with the terms thereof and of the Indenture.
"Management Guarantees" means guarantees (x) of up to an aggregate principal
amount of $10.0 million of borrowings by Management Investors in connection
with their purchase of Management Stock or (y) made on behalf of, or in
respect of loans or advances made to directors, officers or employees of a
Parent, the Company or any Restricted Subsidiary (1) in respect of travel,
entertainment and moving-related expenses incurred in the ordinary course of
business, or (2) in the ordinary course of business and (in the case of this
clause (2)) not exceeding $2.5 million in the aggregate outstanding at any
time.
"Management Investors" means the officers, directors, employees and other
members of the management of a Parent, the Company or any of its Subsidiaries,
or family members or relatives thereof, or trusts or partnerships for the
benefit of any of the foregoing, or any of their heirs, executors, successors
and legal representatives, who at any date beneficially own or have the right
to acquire, directly or indirectly, Capital Stock of the Company or a Parent.
"Management Stock" means Capital Stock of the Company or a Parent (including
any options, warrants or other rights in respect thereof) held by any of the
Management Investors.
"Mergers" means the merger of Acquisition Co. with the California
corporation then known as Jafra Cosmetics International, Inc., with JCI
surviving, and the merger of Jafra S.A. with and into Grupo Jafra, with Jafra
S.A. surviving.
"Moody's" means Moody's Investors Service, Inc., and its successors.
"Net Available Cash" from an Asset Disposition means cash payments received
(including any cash payments received by way of deferred payment of principal
pursuant to a note or installment receivable or otherwise, but only as and
when received, but excluding any other consideration received in the form of
assumption by the acquiring person of Indebtedness or other obligations
relating to the properties or assets that are the subject of such Asset
Disposition or received in any other non-cash form) therefrom, in each case
net of (i) all legal, title and recording tax expenses, commissions and other
fees and expenses incurred, and all Federal, state, provincial, foreign and
local taxes required to be paid or accrued as a liability under GAAP, as a
consequence of such Asset Disposition (including as a consequence of any
transfer of funds in connection with the application thereof in accordance
with the covenant described under "--Certain Covenants--Limitation on Sales of
Assets and Subsidiary Stock"), (ii) all payments made, and all installment
payments required to be made, on any Indebtedness that is secured by any
assets subject to such Asset Disposition, in accordance with the terms of any
Lien upon such assets, or that must by its terms, or in order to obtain a
necessary consent to such Asset Disposition, or by applicable law, be repaid
out of the proceeds from such Asset Disposition, (iii) all
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distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset
Disposition, or to any other Person (other than the Company or a Restricted
Subsidiary) owning a beneficial interest in the assets disposed of in such
Asset Disposition and (iv) any liabilities or obligations associated with the
assets disposed of in such Asset Disposition and retained by the Company or
any Restricted Subsidiary after such Asset Disposition, including pension and
other post-employment benefit liabilities, liabilities related to
environmental matters, and liabilities relating to any indemnification
obligations associated with such Asset Disposition.
"Net Cash Proceeds," with respect to any issuance or sale of any securities
of the Company or any Subsidiary by the Company or any Subsidiary, or any
capital contribution, means the cash proceeds of such issuance, sale or
contribution net of attorneys' fees, accountants' fees, underwriters' or
placement agents' fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance, sale or
contribution and net of taxes paid or payable as a result thereof.
"Note Guarantee" means any of (i) the Guarantee of the Notes by the Company,
the Guarantee of the Guaranteed JCI Obligations by Jafra S.A., the Guarantee
of the Guaranteed Jafra Obligations by JCI and the Subsidiary Guarantees, to
be entered into on the Issue Date as described under "--Note Guarantees," and
(ii) any Subsidiary Guarantee that may from time to time be entered into by a
Restricted Subsidiary pursuant to the covenant described under "--Certain
Covenants--Future Subsidiary Guarantors."
"Note Guarantor" means any of the Company and its Restricted Subsidiaries
that enters into a Note Guarantee.
"Officer" means with respect to the Company, an Issuer or any other obligor
upon the Notes, the Chairman of the Board, the President, the Chief Executive
Officer, the Chief Financial Officer, any Vice President, the Controller, the
Treasurer or the Secretary of such Person.
"Officer's Certificate" means with respect to the Company, an Issuer or any
other obligor upon the Notes, a certificate signed by one Officer of such
Person.
"Opinion of Counsel" means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company, an Issuer or the Trustee.
"Parent" means any Person of which the Company at any time is or becomes a
Subsidiary after the Issue Date.
"Permitted Holder" means any of the following: (i) any of the Investor,
Management Investors, CDR and their respective Affiliates; (ii) any investment
fund or vehicle managed, sponsored or advised by CDR; (iii) any limited or
general partners of, or other investors in, any of the Investor and its
Affiliates, or any such investment fund or vehicle; and (iv) any Person acting
in the capacity of an underwriter in connection with a public or private
offering of Capital Stock of a Parent or the Company.
"Permitted Investment" means an Investment by the Company or any Restricted
Subsidiary in, or consisting of, any of the following:
(i) a Restricted Subsidiary, the Company, or a Person that will, upon the
making of such Investment, become a Restricted Subsidiary;
(ii) another Person if as a result of such Investment such other Person
is merged or consolidated with or into, or transfers or conveys all or
substantially all its assets to, or is liquidated into, the Company or a
Restricted Subsidiary;
(iii) Temporary Cash Investments or Cash Equivalents;
(iv) receivables owing to the Company or any Restricted Subsidiary, if
created or acquired in the ordinary course of business;
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(v) any securities or other Investments received as consideration in, or
retained in connection with, sales or other dispositions of property or
assets, including Asset Dispositions made in compliance with the covenant
described under "--Certain Covenants--Limitation on Sales of Assets and
Subsidiary Stock";
(vi) securities or other Investments received in settlement of debts
created in the ordinary course of business and owing to the Company or any
Restricted Subsidiary, or as a result of foreclosure, perfection or
enforcement of any Lien, or in satisfaction of judgments, including in
connection with any bankruptcy proceeding or other reorganization of
another Person;
(vii) Investments in existence or made pursuant to legally binding
written commitments in existence on the Issue Date;
(viii) Currency Agreements, Interest Rate Agreements and related Hedging
Obligations, which obligations are Incurred in compliance with the covenant
described under "--Certain Covenants--Limitation on Indebtedness";
(ix) pledges or deposits (x) with respect to leases or utilities provided
to third parties in the ordinary course of business or (y) otherwise
described in the definition of "Permitted Liens" or made in connection with
Liens permitted under the covenant described under "--Certain Covenants--
Limitations on Liens";
(x) any Investment in a joint venture or similar entity that is not a
Restricted Subsidiary, or in any Related Business, in an aggregate amount
outstanding at any time not to exceed 4% of Consolidated Total Assets;
(xi) (1) Investments in any Receivables Subsidiary, or in connection with
a Financing Disposition by or to any Receivables Entity, including
Investments of funds held in accounts permitted or required by the
arrangements governing such Financing Disposition or any related
Indebtedness, or (2) any promissory note issued by the Company or a Parent
to a Receivables Subsidiary; provided that if such Parent receives cash
from the relevant Receivables Entity in exchange for such note, an equal
cash amount is contributed by such Parent to the Company;
(xii) bonds secured by assets leased to and operated by the Company or
any Restricted Subsidiary that were issued in connection with the financing
of such assets so long as the Company or any Restricted Subsidiary may
obtain title to such assets at any time by paying a nominal fee, canceling
such bonds and terminating the transaction;
(xiii) Notes;
(xiv) any Investment to the extent made using Capital Stock of the
Company (other than Disqualified Stock), or Capital Stock of a Parent, as
consideration;
(xv) Management Advances; and
(xvi) other Investments in an aggregate amount outstanding at any time
not to exceed 6% of Consolidated Total Assets.
"Permitted Liens" means:
(i) Liens for taxes, assessments or other governmental charges not yet
delinquent or the nonpayment of which in the aggregate would not reasonably
be expected to have a material adverse effect on the Company and its
Restricted Subsidiaries, or that are being contested in good faith and by
appropriate proceedings if adequate reserves with respect thereto are
maintained on the books of the Company or a Subsidiary thereof, as the case
may be, in accordance with GAAP;
(ii) carriers', warehousemen's, mechanics', landlords', materialmen's,
repairmen's or other like Liens arising in the ordinary course of business
in respect of obligations that are not overdue for a period of more than 60
days, or that are bonded or that are being contested in good faith and by
appropriate proceedings;
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(iii) pledges, deposits or Liens in connection with workers'
compensation, unemployment insurance and other social security and other
similar legislation or other insurance-related obligations (including,
without limitation, pledges or deposits securing liability to insurance
carriers under insurance or self-insurance arrangements);
(iv) pledges, deposits or Liens to secure the performance of bids,
tenders, trade, government or other contracts (other than for borrowed
money), obligations for utilities, leases, licenses, statutory obligations,
completion guarantees, surety, judgment, appeal or performance bonds, other
similar bonds, instruments or obligations, and other obligations of a like
nature incurred in the ordinary course of business;
(v) easements (including reciprocal easement agreements), rights-of-way,
building, zoning and similar restrictions, utility agreements, covenants,
reservations, restrictions, encroachments, changes, and other similar
encumbrances or title defects incurred, or leases or subleases granted to
others, in the ordinary course of business, which do not in the aggregate
materially interfere with the ordinary conduct of the business of the
Company and its Subsidiaries, taken as a whole;
(vi) Liens existing on, or provided for under written arrangements
existing on, the Issue Date, or (in the case of any such Liens securing
Indebtedness of the Company or any of its Subsidiaries existing or arising
under written arrangements existing on the Issue Date) securing any
Refinancing Indebtedness in respect of such Indebtedness so long as the
Lien securing such Refinancing Indebtedness is limited to all or part of
the same property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or under such
written arrangements could secure) the original Indebtedness;
(vii) (i) mortgages, liens, security interests, restrictions,
encumbrances or any other matters of record that have been placed by any
developer, landlord or other third party on property over which the Company
or any Restricted Subsidiary of the Company has easement rights or on any
leased property and subordination or similar agreements relating thereto
and (ii) any condemnation or eminent domain proceedings affecting any real
property;
(viii) Liens securing Hedging Obligations, Purchase Money Obligations or
Capitalized Lease Obligations Incurred in compliance with the covenant
described under "--Certain Covenants--Limitation on Indebtedness";
(ix) Liens arising out of judgments, decrees, orders or awards in respect
of which the Company shall in good faith be prosecuting an appeal or
proceedings for review, which appeal or proceedings shall not have been
finally terminated, or if the period within which such appeal or
proceedings may be initiated shall not have expired;
(x) leases, subleases, licenses or sublicenses to third parties;
(xi) Liens securing (1) Indebtedness Incurred in compliance with clause
(b)(i), (b)(iv), (b)(v), (b)(vii), (b)(viii)(E) or (b)(x) of the covenant
described under "--Certain Covenants--Limitation on Indebtedness," or
clause (b)(iii) thereof (other than Refinancing Indebtedness Incurred in
respect of the Notes or Indebtedness described in paragraph (a) thereof),
(2) Bank Indebtedness, (3) commercial bank Indebtedness, (4) Indebtedness
of any Restricted Subsidiary that is not a Subsidiary Guarantor or an
Issuer, (5) the Notes or (6) Indebtedness or other obligations of any
Receivables Entity;
(xii) Liens existing on property or assets of a Person at the time such
Person becomes a Subsidiary of the Company (or at the time the Company or a
Restricted Subsidiary acquires such property or assets); provided, however,
that such Liens are not created in connection with, or in contemplation of,
such other Person becoming such a Subsidiary (or such acquisition of such
property or assets), and that such Liens are limited to all or part of the
same property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or, under the
written arrangements under which such Liens arose, could secure) the
obligations to which such Liens relate;
(xiii) Liens on Capital Stock or other securities of an Unrestricted
Subsidiary that secure Indebtedness or other obligations of such
Unrestricted Subsidiary;
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(xiv) any encumbrance or restriction (including, but not limited to, put
and call agreements) with respect to Capital Stock of any joint venture or
similar arrangement pursuant to any joint venture or similar agreement; and
(xv) Liens securing Refinancing Indebtedness Incurred in respect of any
Indebtedness secured by, or securing any refinancing, refunding, extension,
renewal or replacement (in whole or in part) of any other obligation
secured by, any other Permitted Liens, provided that any such new Lien is
limited to all or part of the same property or assets (plus improvements,
accessions, proceeds or dividends or distributions in respect thereof) that
secured (or, under the written arrangements under which the original Lien
arose, could secure) the obligations to which such Liens relate.
"Permitted Parent Payments" means loans, advances, dividends or
distributions to a Parent or other payments by the Company or any Restricted
Subsidiary (A) to permit such Parent to satisfy obligations under the
Management Agreements or (B) to pay or permit such Parent to pay any Holding
Company Expenses or any Related Taxes.
"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.
"Preferred Stock" as applied to the Capital Stock of any corporation means
Capital Stock of any class or classes (however designated) that by its terms
is preferred as to the payment of dividends, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation.
"Purchase Money Obligations" means any Indebtedness Incurred to finance or
refinance the acquisition, leasing, construction or improvement of property
(real or personal) or assets, and whether acquired through the direct
acquisition of such property or assets or the acquisition of the Capital Stock
of any Person owning such property or assets, or otherwise.
"Receivable" means a right to receive payment arising from a sale or lease
of goods or services by a Person pursuant to an arrangement with another
Person pursuant to which such other Person is obligated to pay for goods or
services under terms that permit the purchase of such goods and services on
credit, as determined in accordance with GAAP.
"Receivables Entity" means (x) any Receivables Subsidiary or (y) any other
Person that is engaged in the business of acquiring, selling, collecting,
financing or refinancing Receivables, accounts (as defined in the Uniform
Commercial Code as in effect in any jurisdiction from time to time), other
accounts and/or other receivables, and/or related assets.
"Receivables Fees" means distributions or payments made directly or by means
of discounts with respect to any participation interest issued or sold in
connection with, and other fees paid to a Person that is not a Restricted
Subsidiary in connection with, any Receivables Financing.
"Receivables Financing" means any financing of Receivables of the Company or
any Restricted Subsidiary that have been transferred to a Receivables Entity
in a Financing Disposition.
"Receivables Subsidiary" means a Subsidiary of the Company that (a) is
engaged solely in the business of acquiring, selling, collecting, financing or
refinancing Receivables, accounts (as defined in the Uniform Commercial Code
as in effect in any jurisdiction from time to time) and other accounts and
receivables (including any thereof constituting or evidenced by chattel paper,
instruments or general intangibles), all proceeds thereof and all rights
(contractual and other), collateral and other assets relating thereto, and any
business or activities incidental or related to such business, and (b) is
designated as a "Receivables Subsidiary" by the Board of Directors.
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"refinance" means refinance, refund, replace, renew, repay, modify, restate,
defer, substitute, supplement, reissue, resell or extend (including pursuant
to any defeasance or discharge mechanism); and the terms "refinances,"
"refinanced" and "refinancing" as used for any purpose in the Indenture shall
have a correlative meaning.
"Refinancing Indebtedness" means Indebtedness that is Incurred to refinance
any Indebtedness existing on the date of the Indenture or Incurred in
compliance with the Indenture (including Indebtedness of the Company that
refinances Indebtedness of any Restricted Subsidiary (to the extent permitted
in the Indenture) and Indebtedness of any Restricted Subsidiary that
refinances Indebtedness of another Restricted Subsidiary) including
Indebtedness that refinances Refinancing Indebtedness; provided, however, that
with respect to any Refinancing Indebtedness (other than Bank Indebtedness),
(i) if the Indebtedness being refinanced is a Subordinated Obligation, the
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being refinanced, (ii) such Refinancing Indebtedness is
Incurred in an aggregate principal amount (or if issued with original issue
discount, an aggregate issue price) that is equal to or less than the sum of
(x) the aggregate principal amount (or if issued with original issue discount,
the aggregate accreted value) then outstanding of the Indebtedness being
refinanced, plus (y) fees, underwriting discounts, premiums and other costs
and expenses incurred in connection with such Refinancing Indebtedness, and
(iii) Refinancing Indebtedness shall not include (x) Indebtedness of a
Restricted Subsidiary that is not a Subsidiary Guarantor or an Issuer that
refinances Indebtedness of the Company, an Issuer or a Subsidiary Guarantor
that was Incurred by such Company, Issuer or Subsidiary Guarantor pursuant to
paragraph (a) of the covenant described under "--Certain Covenants--Limitation
on Indebtedness" or (y) Indebtedness of the Company or a Restricted Subsidiary
that refinances Indebtedness of an Unrestricted Subsidiary.
"Related Business" means those businesses in which the Company or any of its
Subsidiaries is engaged on the Issue Date, or that are related, complementary,
incidental or ancillary thereto or extensions, developments or expansions
thereof.
"Related Taxes" means (x) any taxes, charges or assessments, including but
not limited to sales, use, transfer, rental, ad valorem, value-added, stamp,
property, consumption, franchise, license, capital, net worth, gross receipts,
excise, occupancy, intangibles or similar taxes, charges or assessments (other
than federal, state or local taxes measured by income and federal, state or
local withholding imposed on payments made by a Parent), required to be paid
by such Parent by virtue of its being incorporated or having Capital Stock
outstanding (but not by virtue of owning stock or other equity interests of
any corporation or other entity other than the Company or any of its
Subsidiaries), or being a holding company parent of the Company or having
received Capital Stock of the Company as a capital contribution, or receiving
dividends from or other distributions in respect of the Capital Stock of the
Company, or having guaranteed any obligations of the Company or any Subsidiary
thereof, or having made any payment in respect of any of the items for which
the Company is permitted to make payments to such Parent pursuant to the
covenant described under "--Certain Covenants --Limitation on Restricted
Payments," or (y) any other U.S. or non-U.S. taxes measured by income for
which such Parent is liable up to an amount not to exceed with respect to U.S.
federal taxes the amount of any such taxes that the Company would have been
required to pay on a separate company basis or on a consolidated basis if the
Company had filed a consolidated return on behalf of an affiliated group (as
defined in Section 1504 of the Code) of which it were the common parent, or
with respect to non-U.S. taxes and U.S. state and local taxes, on a combined
basis if the Company had filed a combined return on behalf of an affiliated
group consisting only of the Company and its Subsidiaries.
"Representative" means the trustee, agent or representative (if any) for an
issue of Senior Indebtedness.
"Restricted Payment Transaction" means any Restricted Payment permitted
pursuant to the covenant described under "--Certain Covenants--Limitation on
Restricted Payments," any Permitted Payment, any Permitted Investment, or any
transaction (other than Guarantees) specifically excluded from the definition
of the term "Restricted Payment."
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"Restricted Subsidiary" means any Subsidiary of the Company other than an
Unrestricted Subsidiary.
"SEC" means the Securities and Exchange Commission.
"Secured Indebtedness" with respect to a Person means any Indebtedness of
such Person secured by a Lien.
"Senior Credit Agreement" means the credit agreement dated as of April 30,
1998, among the Company, the Issuers, the lenders named therein and Credit
Suisse First Boston, as administrative agent, as such agreement may be assumed
by any successor in interest, and as such agreement may be amended,
supplemented, waived or otherwise modified from time to time, or refunded,
refinanced, restructured, replaced, renewed, repaid, increased or extended
from time to time (whether in whole or in part, whether with the original
agent and lenders or other agents and lenders or otherwise, and whether
provided under the original Senior Credit Agreement or otherwise).
"Senior Credit Facility" means the collective reference to the Senior Credit
Agreement, any Loan Documents (as defined therein), any notes and letters of
credit issued pursuant thereto and any guarantee and collateral agreement,
patent and trademark security agreement, mortgages, letter of credit
applications and other guarantees, pledge agreements, security agreements and
collateral documents, and other instruments and documents, executed and
delivered pursuant to or in connection with any of the foregoing, in each case
as the same may be amended, supplemented, waived or otherwise modified from
time to time, or refunded, refinanced, restructured, replaced, renewed,
repaid, increased or extended from time to time (whether in whole or in part,
whether with the original agent and lenders or other agents and lenders or
otherwise, and whether provided under the original Senior Credit Agreement or
one or more other credit agreements, indentures (including the Indenture) or
financing agreements or otherwise). Without limiting the generality of the
foregoing, the term "Senior Credit Facility" shall include any agreement (i)
changing the maturity of any Indebtedness incurred thereunder or contemplated
thereby, (ii) adding Subsidiaries of the Company as additional borrowers or
guarantors thereunder, (iii) increasing the amount of Indebtedness incurred
thereunder or available to be borrowed thereunder or (iv) otherwise altering
the terms and conditions thereof.
"Senior Subordinated Indebtedness" with respect to either Issuer or any Note
Guarantor means the Notes (in the case of such Issuer) or the Note Guarantee
of such Person (in the case of such Note Guarantor) and any other Indebtedness
of such Person that ranks pari passu with the Notes or such Note Guarantee, as
the case may be.
"Significant Subsidiary" means any Restricted Subsidiary that would be a
"significant subsidiary" of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC, as in effect on the Issue Date.
"S&P" means Standard & Poor's Ratings Service, a division of The McGraw-Hill
Companies, Inc., and its successors.
"Stated Maturity" means, with respect to any security, the date specified in
such security as the fixed date on which the payment of principal of such
security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has
occurred).
"Subordinated Obligations" with respect to either Issuer or any Note
Guarantor means any Indebtedness of such Person (whether outstanding on the
Issue Date or thereafter Incurred) that is expressly subordinated in right of
payment to the Notes (in the case of such Issuer) or to the Note Guarantee of
such Person (in the case of such Note Guarantor), pursuant to a written
agreement.
"Subsidiary" of any Person means any corporation, association, partnership
or other business entity of which more than 50% of the total voting power of
shares of Capital Stock or other equity interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (i) such Person or (ii) one or
more Subsidiaries of such Person.
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"Subsidiary Guarantee" means any of (i) the Guarantees of the Guaranteed JCI
Obligations by the U.S. Subsidiary Guarantors and the Guarantees of the
Guaranteed Jafra Obligations by the Jafra S.A Subsidiary Guarantors, to be
entered into on the Issue Date as described under "--Note Guarantees," and
(ii) any Guarantee in respect of the Notes that may from time to time be
entered into by a Restricted Subsidiary pursuant to the covenant described
under "--Certain Covenants--Future Subsidiary Guarantors."
"Subsidiary Guarantor" means any Restricted Subsidiary that enters into a
Subsidiary Guarantee.
"Successor" shall have the meaning assigned thereto in clause (i) under "--
Merger and Consolidation."
"Temporary Cash Investments" means any of the following: (i) any investment
in (x) direct obligations of the United States of America or any agency or
instrumentality thereof or obligations Guaranteed by the United States of
America or any agency or instrumentality thereof or (y) direct obligations of
any foreign country recognized by the United States of America rated at least
"A" by S&P or "A-1" by Moody's (or, in either case, the equivalent of such
rating by such organization or, if no rating of S&P or Moody's then exists,
the equivalent of such rating by any nationally recognized rating
organization), (ii) overnight bank deposits, and investments in time deposit
accounts, certificates of deposit, bankers' acceptances and money market
deposits (or, with respect to foreign banks, similar instruments) maturing not
more than one year after the date of acquisition thereof issued by (x) any
lender under the Senior Credit Agreement or (y) a bank or trust company that
is organized under the laws of the United States of America, any state thereof
or any foreign country recognized by the United States of America having
capital and surplus aggregating in excess of $250 million (or the foreign
currency equivalent thereof) and whose long term debt is rated at least "A" by
S&P or "A-1" by Moody's (or, in either case, equivalent of such rating by such
organization or, if no rating of S&P or Moody's then exists, the equivalent of
such rating by any nationally recognized rating organization) at the time such
Investment is made, (iii) repurchase obligations with a term of not more than
30 days for underlying securities of the types described in clause (i) or (ii)
above entered into with a bank meeting the qualifications described in clause
(ii) above, (iv) Investments in commercial paper, maturing not more than 270
days after the date of acquisition, issued by a Person (other than the Company
or any of its Subsidiaries) with a rating at the time as of which any
Investment therein is made of "P-2" (or higher) according to Moody's or "A-2"
(or higher) according to S&P (or, in either case, the equivalent of such
rating by such organization or, if no rating of S&P or Moody's then exists,
the equivalent of such rating by any nationally recognized rating
organization), (v) Investments in securities maturing not more than one year
after the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States of America, or by any political
subdivision or taxing authority thereof, and rated at least "A" by S&P or "A"
by Moody's (or, in either case, the equivalent of such rating by such
organization or, if no rating of S&P or Moody's then exists, the equivalent of
such rating by any nationally recognized rating organization), (vi) Preferred
Stock (other than of the Company or any of its Subsidiaries) having a rating
of A or higher by S&P or A2 or higher by Moody's (or, in either case, the
equivalent of such rating by such organization or, if no rating of S&P or
Moody's then exists, the equivalent of such rating by any nationally
recognized rating organization), (vii) investment funds investing 95% of their
assets in securities of the type described in clauses (i)-(vii) above (which
funds may also hold reasonable amounts of cash pending investment or
distribution), (viii) any money market deposit accounts issued or offered by a
domestic commercial bank or a commercial bank organized and located in a
country recognized by the United States of America, in each case, having
capital and surplus in excess of $250 million (or the foreign currency
equivalent thereof), or investments in money market funds complying with the
risk limiting conditions of Rule 2a-7 (or any successor rule) of the SEC,
under the Investment Company Act of 1940, as amended and (ix) similar short-
term investments approved by the Board of Directors in the ordinary course of
business.
"TIA" means the Trust Indenture Act of 1939 (15 U.S.C. (S)(S) 77aaa-7bbbb)
as in effect on the Issue Date.
"Trade Payables" means, with respect to any Person, any accounts payable or
any indebtedness or monetary obligation to trade creditors created, assumed or
guaranteed by such Person arising in the ordinary course of business in
connection with the acquisition of goods or services.
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"Transactions" means, collectively, the Acquisition, the Mergers, the
initial equity investment by the Investor and (if applicable) one or more
Management Investors, the offering and the issuance of the Notes, the initial
borrowings under the Senior Credit Facility, and all other transactions
relating to the Acquisition or the financing thereof.
"Trustee" means the party named as such in the Indenture until a successor
replaces it and, thereafter, means the successor.
"Trust Officer" means the Chairman of the Board, the President or any other
officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.
"Unrestricted Subsidiary" means (i) any Subsidiary of the Company that at
the time of determination is an Unrestricted Subsidiary, as designated by the
Board of Directors in the manner provided below, and (ii) any Subsidiary of an
Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary
of the Company (including any newly acquired or newly formed Subsidiary of the
Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of its
Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any
Lien on any property of, the Company or any other Restricted Subsidiary of the
Company that is not a Subsidiary of the Subsidiary to be so designated;
provided, however, that either (A) the Subsidiary to be so designated has
total consolidated assets of $1,000 or less or (B) if such Subsidiary has
consolidated assets greater than $1,000, then such designation would be
permitted under the covenant described under "--Certain Covenants--Limitation
on Restricted Payments." The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided, however, that immediately
after giving effect to such designation either (x) the Company could incur at
least $1.00 of additional Indebtedness under paragraph (a) in the covenant
described under "--Certain Covenants--Limitation on Indebtedness" or (y) the
Consolidated Coverage Ratio would be greater than it was immediately prior to
giving effect to such designation. Any such designation by the Board of
Directors shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the resolution of the Company's Board of Directors giving
effect to such designation and an Officer's Certificate certifying that such
designation complied with the foregoing provisions.
"U.S. Subsidiary" means any Restricted Subsidiary of the Company other than
a Foreign Subsidiary.
"U.S. Subsidiary Guarantor" means any U.S. Subsidiary of JCI that enters
into a Subsidiary Guarantee.
"Voting Stock" of an entity means all classes of Capital Stock of such
entity then outstanding and normally entitled to vote in the election of
directors or all interests in such entity with the ability to control the
management or actions of such entity.
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TAXATION
The following is a summary of the material Mexican, Luxembourg and U.S.
federal income tax consequences of the purchase, ownership and disposition of
the Notes to purchasers of the Notes at original issue, but it does not
purport to be a comprehensive description of all of the tax considerations
that may be relevant to a decision to purchase, own or dispose of the Notes.
This summary is based on the tax laws in force on the date of this
Registration Statement, including the tax treaty between the United States and
Mexico together with a related protocol thereto (the "U.S.-Mexico Treaty"), as
well as regulations, rulings and decisions of the U.S. and regulations of
Mexico available on or before such date and now in effect and does not
describe any tax consequences arising under the laws of any state, locality or
taxing jurisdiction other than Mexico, Luxembourg and the United States. The
Issuers and, by acquiring the Notes, the holders of Notes agree to treat $400
of each $1,000 principal amount of the Notes as indebtedness of Jafra S.A. and
$600 of each $1,000 principal amount of the Notes as indebtedness of the U.S.
Issuer for all U.S. federal, state and local and non-U.S. tax purposes.
EACH HOLDER SHOULD CONSULT ITS TAX ADVISOR AS TO THE MEXICAN, LUXEMBOURG,
U.S. OR OTHER TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF
THE NOTES, INCLUDING THE EFFECT OF ANY FOREIGN, STATE OR LOCAL TAX LAWS,
INCLUDING ANY APPLICABLE TAX TREATY. THERE CAN BE NO ASSURANCE THAT THE
MEXICAN, LUXEMBOURG OR U.S. TAX AUTHORITIES WILL NOT TAKE POSITIONS THAT ARE
CONTRARY TO THOSE CONSIDERED BELOW.
MEXICAN TAXATION
The following is a summary of the material consequences under the Mexican
Ley del Impuesto sobre la Renta (the "Mexican Income Tax Law") and rules and
regulations issued thereunder, as currently in effect, of an investment in the
Notes. This summary of certain Mexican tax considerations deals only with
holders of Notes or of a beneficial interest therein that are not residents of
Mexico for Mexican tax purposes and that do not conduct a trade or business
through a permanent establishment or fixed base in Mexico (a "Non-Mexican
Holder"). For purposes of Mexican taxation, an individual is a resident of
Mexico if he has established his domicile in Mexico, unless he has resided in
another country for more than 183 calendar days, whether consecutive or not,
in any one calendar year and can demonstrate that he has become a resident of
that other country for tax purposes, and a legal entity is a resident of
Mexico if it has been incorporated under the laws of Mexico. A Mexican citizen
is presumed to be a resident of Mexico for tax purposes unless such person can
demonstrate otherwise. If a person has a permanent establishment or fixed base
in Mexico, such permanent establishment or fixed base shall be required to pay
taxes in Mexico on income attributable to such permanent establishment or
fixed base in accordance with relevant tax provisions.
Exchange Offer
The exchange of Existing Notes for New Notes pursuant to the Exchange Offer
will not be a taxable event for Mexican federal income tax purposes because
the New Notes will not be considered to differ materially from the Existing
Notes. As a result, there will be no material Mexican federal income tax
consequences to a holder exchanging Existing Notes for the New Notes pursuant
to the Exchange Offer.
Taxation of Interest and Principal
Under the Mexican Income Tax Law, payments of interest made by Jafra S.A. in
respect of the Notes (including payments of principal in excess of the issue
price of such Notes, which, under Mexican law, are deemed to be interest) to a
Non-Mexican Holder generally will be subject to a Mexican withholding tax
assessed at a rate of 15%, because the Notes are registered in the Special
Section of the RNVI.
Pursuant to the Mexican Income Tax Law, payments of interest made by Jafra
S.A. in respect of the Notes to a Non-Mexican Holder will be subject to a
reduced 4.9% Mexican withholding tax rate (the "Reduced Rate")
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until December 31, 1998 if the Notes are registered with the Special Section
of the RNVI as set forth above and (i) the effective beneficiary of the
interest is a Non-Mexican Holder who resides for tax purposes in a country
which has entered into a treaty to avoid double taxation with Mexico; and (ii)
the requirements for the application of the rates therein specified for this
type of interest income are satisfied.
Notwithstanding the foregoing, pursuant to Rule 3.32.9 (the "Reduced Rate
Rule") issued by Secretaria de Hacienda y Credito Publico (the "Ministry of
Finance") and expected to be effective through March 31, 1999, payments of
interest with respect to the Notes made by Jafra S.A. to Non-Mexican Holders,
regardless of the place of residence or the tax regime applicable to the Non-
Mexican Holder recipient of the interest, will be subject to withholding taxes
imposed at the Reduced Rate if (i) the Notes are registered with the Special
Section of the RNVI and copies of approval of such registration are provided
to the Ministry of Finance, (ii) Jafra S.A. timely files with the Ministry of
Finance the original Offering Circular for the Notes and certain information
relating to the issuance of the Notes after completion of the transactions
contemplated by such Offering Circular, (iii) Jafra S.A. timely files with the
Ministry of Finance on a quarterly basis, information relating to the amount
and dates of interest payments made during each quarter and information
representing that no party related to Jafra S.A. (as such terms are defined in
the Reduced Rate Rule), directly or indirectly, is the effective beneficiary
of five percent (5%) or more of the aggregate amount of each such interest
payment, and (iv) Jafra S.A. maintains records that evidence compliance with
(i), (ii) and (iii) above. Jafra S.A. expects that such conditions will be met
and, accordingly, expects to withhold Mexican tax from interest payments at
the Reduced Rate during the effectiveness of such rule. The Reduced Rate Rule
is effective for only one year and hence is subject to promulgation on an
annual basis. There can be no assurance that the provisions set forth in the
Reduced Rate Rule described above for the application of the Reduced Rate will
be extended beyond March 1999. In the event that an equivalent rule does not
become effective after such date, higher rates may apply, as described above.
In addition, the rate of Mexican withholding tax may be reduced under an
applicable tax treaty.
Payments of interest by Jafra S.A. with respect to the Notes to non-Mexican
pension or retirement funds will be exempt from Mexican withholding taxes,
provided that any such fund (i) is the effective beneficiary of the income,
(ii) is duly incorporated pursuant to the laws of its country of origin
(regardless of the type of organization), (iii) is exempt from the payment of
income taxes in such country, (iv) is registered with the Ministry of Finance
for that purpose and (v) if Mexican pension or retirement funds are
reciprocally exempt from the payment of withholding taxes in the jurisdiction
of incorporation of any such fund.
Under existing Mexican law and regulations, a Non-Mexican Holder will not be
subject to any Mexican taxes in respect of payments of principal made by Jafra
S.A. with respect to the Notes.
Interest and principal paid by the U.S. Issuer pursuant to the U.S. Issuer's
Obligations to a Non-Mexican Holder will not be subject to Mexican taxes. In
accordance with the Mexican Income Tax Law, interest payments made by any Note
Guarantors which are residents of Mexico will be subject to Mexican
withholding taxes pursuant to the rules set forth in this section. Interest
payments made by a Note Guarantor in respect of the Notes also may be subject
to Mexican withholding tax pursuant to the rules set forth herein, unless an
applicable tax treaty provides otherwise.
Additional Amounts
Jafra S.A. and the Note Guarantors have agreed, subject to specified
exceptions and limitations, to pay Additional Amounts to the holders of the
Notes in respect of the Mexican withholding taxes mentioned above. See
"Description of Notes--Additional Amounts."
Holders or beneficial owners of Notes may be requested to provide certain
information or documentation necessary to enable Jafra S.A. to establish the
appropriate Mexican withholding tax rate applicable to such holders or
beneficial owners. In the event that the specified information or
documentation concerning the holder
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or beneficial owner, if requested, is not provided on a timely basis, the
obligation of Jafra S.A. to pay Additional Amounts will be limited. See
"Description of Notes--Additional Amounts."
Taxation of Dispositions
Capital gains resulting from the sale or other disposition of the Notes by a
Non-Mexican Holder will not be subject to Mexican income or other taxes.
Transfer and Other Taxes
There are no Mexican stamp, registration, or similar taxes payable by a Non-
Mexican Holder in connection with the purchase, ownership or disposition of
the Notes. A Non-Mexican Holder will not be liable for Mexican estate, gift,
inheritance or similar tax with respect to the Notes.
LUXEMBOURG TAXATION
Under current law, no withholding or deduction is imposed in Luxembourg in
respect of any payment in respect of the Notes to be made by Parent under the
Parent Guarantee. Noteholders or holders of a beneficial interest in the Notes
who are neither resident nor engaged in trade or business through a permanent
establishment in Luxembourg will not be subject to taxes or duties in
Luxembourg in respect of any payment in respect of the Notes to be made by
Parent under the Parent Guarantee. No stamp, registration or similar taxes,
duties or charges are payable under Luxembourg law in connection with the
issue of the Parent Guarantee or in connection with any payment in respect of
the Notes to be made by the Parent under the Parent Guarantee.
UNITED STATES FEDERAL INCOME TAXATION
The following is a discussion of the material United States federal income
tax consequences of the purchase, ownership and disposition of the Notes. This
discussion is based on currently existing provisions of the Internal Revenue
Code of 1986, as amended (the "Code"), existing and proposed Treasury
Regulations promulgated thereunder, and administrative and judicial
interpretations thereof, all as in effect or proposed on the date hereof and
all of which are subject to change, possibly with retroactive effect, or
different interpretations. This discussion does not address the tax
consequences to subsequent purchasers of Notes, and is limited to investors
who hold the Notes as capital assets. Moreover, this discussion is for general
information only, and does not address all of the tax consequences that may be
relevant to particular investors in light of their personal circumstances, or
to certain types of investors (such as certain financial institutions,
insurance companies, tax-exempt entities, dealers in securities, persons who
have acquired the Notes as part of a straddle, hedge, conversion transaction
or other integrated investment or persons whose functional currency is not the
U.S. Dollar).
HOLDERS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE U.S.
FEDERAL INCOME AND ESTATE TAX CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP
AND DISPOSITION OF THE NOTES, INCLUDING THE APPLICABILITY OF ANY FEDERAL
ESTATE OR GIFT TAX LAWS OR ANY STATE, LOCAL OR FOREIGN TAX LAWS.
United States Taxation of US. Holders
As used herein, the term "U.S. Holder" means a beneficial owner of a Note
that is, for U.S. federal income tax purposes, (i) an individual citizen or
resident of the United States, (ii) a corporation created or organized in or
under the laws of the United States or of any political subdivision thereof,
(iii) a domestic partnership, (iv) an estate the income of which is includible
in income for U.S. federal income and estate tax purposes regardless of its
source or (v) a trust if a court within the United States is able to exercise
primary supervision over the administration of such trust and one or more U.S.
persons have the authority to control all substantial decisions of such trust.
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Exchange Offer. The exchange of an Existing Note by a U.S. Holder for a New
Note will not constitute a taxable exchange of the Note. Accordingly, a U.S.
Holder will not recognize taxable gain or loss upon receipt of a New Note, a
U.S. Holder's holding period for a New Note will include the holding period
for the Existing Note so exchanged and such holder's adjusted tax basis in a
New Note will be the same as such holder's adjusted tax basis in the Existing
Note so exchanged.
Taxation of Interest and Additional Amounts. Subject to the discussion below
under "Payments on Registration Default," in general, interest and Additional
Amounts (without reduction for applicable withholding taxes) paid or payable
on a Note or with respect to a Guarantee will be taxable to a U.S. Holder as
ordinary interest income as received or accrued, in accordance with such
holder's method of accounting for U.S. federal income tax purposes.
Payments Upon Registration Default. Because the Notes provide for the
payment of liquidated damages under the circumstances described above under
"Exchange Offer; Registration Rights," the Notes could be subject to certain
Treasury Regulations relating to debt instruments that provide for one or more
contingent payments (the "Contingent Payment Regulations"). Under the
Contingent Payment Regulations, however, a payment is not a contingent payment
merely because of a contingency that, as of the issue date, is "remote." The
Issuers intend to take the position that, for purposes of the Contingent
Payment Regulations, the payment of such liquidated damages was a remote
contingency as of the issue date. Accordingly, the Contingent Payment
Regulations should not apply to the Notes unless payments are actually made
upon a Registration Default, in which case, the rules described below would
apply to such payments.
If (a) the payment of such liquidated damages were not a remote contingency
for purposes of the Contingent Payment Regulations or (b) payments were
actually made upon a Registration Default, and such payments were to be
treated as contingent payments payable on the occurrence of an "incidental
contingency" under such regulations, then such payments would be includible in
a U.S. Holder's gross income in the taxable year in which such payments were
actually made, regardless of the tax accounting method used by such holder. If
(i) the payment of such liquidated damages were not a remote contingency for
purposes of the Contingent Payment Regulations or (ii) payments were actually
made upon a Registration Default, and such payments were not to be treated as
contingent payments payable on the occurrence of an "incidental contingency"
under such regulations, then (x) all payments (including any projected
payments of such liquidated damages) on a Note in excess of its issue price
would effectively be treated as original issue discount, and (y) in each
taxable year, a holder would be required to include an allocable portion of
such amounts in gross income on a constant yield basis whether or not the
payment of such liquidated damages were fixed or determinable in the taxable
year.
Prospective acquirors should consult their tax advisors as to the tax
considerations relating to debt instruments providing for payments such as the
liquidated damages payable upon a Registration Default, particularly in
connection with the possible application of the Contingent Payment
Regulations.
Foreign Tax Credit. Mexican taxes withheld (as described above under
"Mexican Taxation") at the appropriate rate applicable to a U.S. Holder with
respect to Jafra S.A.'s Obligations generally will be treated as foreign
income taxes eligible for credit against such U.S. Holder's U.S. federal
income tax liability, subject to generally applicable limitations and
conditions, or, at the election of such U.S. Holder, for deduction in
computing such U.S. Holder's taxable income but only for a year for which such
U.S. Holder elects to do so with respect to all foreign income taxes. The
Issuers believe that interest and Additional Amounts paid by Jafra S.A. in
respect of Jafra S.A.'s Obligations and payments, if any, by a Note Guarantor
of Jafra S.A.'s obligations will be treated as income from sources without the
U.S. for foreign tax credit purposes. Such income generally will constitute
"passive income" or, in the case of certain U.S. Holders, "financial services
income" for U.S. foreign tax credit purposes unless the Mexican withholding
tax rate applicable to the U.S. Holder is imposed at a rate of at least 5%, in
which case such income generally will constitute "high withholding tax
interest." The Issuers believe that interest paid by the U.S. Issuer in
respect of the U.S. Issuer's Obligations will be treated as income from U.S.
sources for foreign tax credit purposes.
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The calculation of foreign tax credits and, in the case of a U.S. Holder
that elects to deduct foreign income taxes, the availability of deductions,
involves the application of rules that depend on a U.S. Holder's particular
circumstances. U.S. Holders should consult their own tax advisors regarding
the availability of foreign tax credits in respect of Jafra S.A.'s Obligations
and payments, if any, by Jafra S.A. in its capacity as Note Guarantor of the
U.S. Issuer's Obligations.
Sale, Exchange or Retirement of the Notes. Upon the sale, exchange,
redemption, retirement at maturity or other disposition of a Note, a U.S.
Holder will generally recognize taxable gain or loss equal to the difference
between the sum of cash plus the fair market value of all other property
received on such disposition (except to the extent such cash or property is
attributable to accrued interest, which will be taxable as ordinary income)
and such holder's adjusted tax basis in the Note. Gain or loss recognized on
the disposition of a Note generally will be capital gain or loss and will be
long-term capital gain or loss if, at the time of such disposition, the U.S.
Holder's holding period for the Note is more than one year. Net capital losses
are subject to certain limitations. The Issuers believe that separate
determinations of amounts realized and basis with respect to the U.S. Issuer's
Obligations and Jafra S.A.'s Obligations generally will not be necessary
(unless one Issuer's obligations are redeemed separately from the other's).
Backup Withholding and lnformation Reporting. In general, a U.S. Holder of a
Note will be subject to backup withholding at the rate of 31% with respect to
interest, principal and premium, if any, paid on a Note or under a Guarantee,
unless the holder (a) is an entity (including corporations, tax-exempt
organizations and certain qualified nominees) that is exempt from withholding
and, when required, demonstrates this fact, or (b) provides the U.S. Issuer or
Paying Agent with its Taxpayer Identification Number ("TIN") (which for an
individual would be the holder's Social Security number), certifies that the
TIN provided to the U.S. Issuer or Paying Agent is correct and that the holder
has not been notified by the IRS that it is subject to backup withholding due
to under reporting of interest or dividends, and otherwise complies with
applicable requirements of the backup withholding rules. In addition, such
payments of principal, premium and interest to U.S. Holders that are not
corporations, tax-exempt organizations or qualified nominees will generally be
subject to information reporting requirements.
Backup withholding is not an additional tax. The amount of any backup
withholding from a payment to a U.S. Holder will be allowed as a credit
against such holder's U.S. federal income tax liability and may entitle such
holder to a refund, provided that the required information is furnished to the
IRS.
UNITED STATES TAXATION OF NON-US. HOLDERS
Payment of Interest by U.S. Issuer. In general, interest paid (or accrued)
in respect of the U.S. Issuer's Obligations to a beneficial owner of a Note
that is not a U.S. Holder (a "Non-U.S. Holder") will not be subject to U.S.
federal withholding tax, provided that (i)(a) the Non-U.S. Holder does not
actually or constructively own
10% or more of the total combined voting power of all classes of stock of the
U.S. Issuer entitled to vote within the meaning of Section 871(h)(3)(B) of the
Code and the Treasury Regulations thereunder, (b) the Non-U.S. Holder is not a
controlled foreign corporation that is related to the U.S. Issuer actually or
constructively through stock ownership, (c) the Holder is not a bank whose
receipt of interest from the U.S. Issuer on a Note is described in section
881(c)(3)(A) of the Code and (d) either (x) the beneficial owner of the Note,
under penalties of perjury, provides the U.S. Issuer or its agent with the
beneficial owner's name and address and certifies that it is not a U.S. Holder
on Form W-8 (or a suitable substitute or successor form) or (y) a securities
clearing organization, bank or other financial institution that holds
customers' securities in the ordinary course of its trade or business (a
"financial institution") holds the Note and certifies to the U.S. Issuer or
its agent under penalties of perjury that such Form W-8 (or suitable
substitute or successor form) has been received by it from the beneficial
owner or qualifying intermediary and furnishes the payor a copy thereof; (ii)
the Non-U.S. Holder is subject to U.S. federal income tax with respect to the
Note on a net basis because payments received with respect to the Note are
effectively connected with a U.S. trade or business of the Non-U.S. Holder and
provides the U.S. Issuer with a properly executed IRS Form 4224 or successor
form; or (iii) the Non-U.S. Holder is entitled to the benefits of
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an income tax treaty under which the interest is exempt from United States
withholding tax, and the Non-U.S. Holder or such holder's agent provides a
properly executed IRS Form 1001 or successor form claiming the exemption.
Payments of interest not exempt from U.S. federal withholding tax as described
above will be subject to such withholding tax at the rate of 30% (subject to
reduction under an applicable income tax treaty).
Recently issued Treasury regulations (the "New Withholding Regulations")
generally will be effective with respect to payments made after December 31,
1999, regardless of the issue date of the instrument with respect to which
such payments are made. The New Withholding Regulations generally will not
affect the certification rules described above, but will provide alternative
methods for satisfying such requirements. The New Withholding Regulations also
generally will require, in the case of Notes held by a foreign partnership,
that (x) the certification described in the preceding paragraph be provided by
the partners rather than by the foreign partnership and (y) the partnership
provide certain information. A look-through rule will apply in the case of
tiered partnerships. In addition, the New Withholding Regulations may require
that a Non-U.S. Holder (including a foreign partnership or a partner thereof)
obtain a taxpayer identification number and make certain certifications if
interest in respect of a Note is not portfolio interest and the Non-U.S.
Holder wishes to claim a reduced rate of withholding under an income tax
treaty. Each Non-U.S. Holder should consult such holder's own tax advisor
regarding the application to such holder of the New Withholding Regulations.
Payment of Interest by Jafra S.A. In general, interest paid (or accrued) in
respect of Jafra S.A.'s Obligations to a Non-U.S. Holder will not be subject
to U.S. federal withholding tax.
Sales, Exchange or Retirement of the Notes. A Non-U.S. Holder generally will
not be subject to U.S. federal income tax (and generally no tax will be
withheld) with respect to gain realized on the sale, exchange, redemption,
retirement at maturity or other disposition of a Note, unless (i) the gain is
effectively connected with a U.S. trade or business conducted by the Non-U.S.
Holder or (ii) the Non-U.S. Holder is an individual who is present in the
United States for a period or periods aggregating 183 or more days in the
taxable year of the disposition and certain other conditions are met.
With respect to a Non-U.S. Holder subject to U.S. federal income tax as
described in the preceding paragraph, an exchange of a Note for an Exchange
Note should not constitute a taxable exchange of the Note. See "United States
Taxation of U.S. Holders, Sale, Exchange or Retirement of the Notes."
Effectively Connected lncome. If interest or gain on a Note held by a Non-
U.S. Holder received with respect to the Note is effectively connected with a
U.S. trade or business of the Non-U.S. Holder, although exempt from
withholding tax, such income or gain will be subject to regular U.S. tax in
the same manner as if it were a U.S. Holder. See "United States Taxation of
U.S. Holder." In addition, if such U.S. Holder is a foreign corporation, it
may also be subject to branch profits tax equal to 30% of its effectively
connected earnings and profits for the taxable year, subject to certain
adjustments.
Backup Withholding and Reporting. Under current Treasury Regulations, backup
withholding and information reporting on IRS Form 1099 do not apply to
payments made by the U.S. Issuer or a Paying Agent to Non-U.S. Holders if the
certification described under "United States Taxation of Non-U.S. Holders--
Payment of Interest on Notes" is received, provided that the payor does not
have actual knowledge that the holder is a U.S. Holder. If any payments of
principal, premium (if any) and interest are made to the beneficial owner of a
Note by or through the foreign office of a foreign custodian, foreign nominee
or other foreign agent of such beneficial owner, or if the foreign office of a
foreign "broker" (as defined in applicable U.S. Treasury Regulations) pays the
proceeds of the sale of a Note to the seller thereof, backup withholding and
information reporting will not apply. Information reporting requirements (but
not backup withholding) will apply, however, to any such payments by a foreign
office of a broker that is, for U.S. federal income tax purposes, a U.S.
person, or a foreign person that derives 50% or more of its gross income for
certain periods from the conduct of a trade or business in the United States,
or a "controlled foreign corporation" (generally, a foreign corporation
controlled by U.S. shareholders) with respect to the United States, unless the
broker has documentary evidence in its records that the holder is a Non-U.S.
Holder and certain other conditions are met, or the holder otherwise
124
<PAGE>
establishes an exemption. Any such payments by a U.S. office of a custodian,
nominee or agent or by a U.S. office of a broker are subject to both backup
withholding at a rate of 31% and information reporting unless the holder
certifies under penalties of perjury that it is a Non-U.S. Holder and the
payor does not have actual knowledge that the beneficial owner is a United
States person or otherwise establishes an exemption. The New Withholding Tax
Regulations revise (substantially, in certain respects) the procedures that
withholding agents and payees must follow to comply with, or to establish an
exemption from, information reporting and backup withholding provisions for
payments after December 31, 1999. Each Non-U.S. Holder should consult such
holder's tax advisor regarding the application to such holder of the New
Withholding Regulations.
A Non-U.S. Holder may obtain a refund or a credit against such holder's U.S.
federal income tax liability of any amounts withheld under the backup
withholding rules, provided the required information is furnished to the IRS.
BOOK-ENTRY; DELIVERY AND FORM
The New Notes will be issued in fully registered form without interest
coupons. The Notes will be represented by one or more permanent global Notes
in definitive, fully registered form without coupons (the "Global Security")
and will be registered in the name of a nominee of DTC and deposited with the
Trustee as custodian for DTC for credit to the respective accounts of the
purchasers (or to such other accounts as they may direct).
DTC has advised the Company that it is (i) a limited purpose trust company
organized under the laws of the State of New York, (ii) a "banking
organization" within the meaning of the New York Banking Law, (iii) a member
of the Federal Reserve System, (iv) a "clearing corporation" within the
meaning of the Uniform Commercial Code, and (v) a "Clearing Agency" registered
pursuant to the provisions of Section 17A of the Exchange Act. DTC was created
to hold securities for its participants and facilitate the clearance and
settlement of securities transactions between participants through electronic
book-entry changes in accounts of its participants, thereby eliminating the
need for physical movement of certificates. Participants include securities
brokers and dealers, banks, trust companies and clearing corporations and
certain other organizations. Indirect access to the DTC system is available to
others such as banks, brokers, dealers and trust companies that clear through
or maintain a custodial relationship with a participant, either directly or
indirectly ("indirect participants").
The Company expects, pursuant to procedures established by DTC, that upon
deposit of the Global Security, DTC or its custodian will credit, on its
internal system, the respective principal amount of the individual beneficial
interests represented by such Global Security to the accounts of persons who
have accounts with such depositary. Such accounts initially will be designated
by or on behalf of the Initial Purchasers. Ownership of beneficial interests
in the Global Security will be limited to persons who have accounts with DTC
("participants") or persons who hold interests through participants. Ownership
of beneficial interests in the Global Security will be shown on, and the
transfer of that ownership will be effected only through, records maintained
by DTC or its nominee (with respect to interests of participants) and the
records of participants (with respect to interests of persons other than
participants). QIBs may hold their interests in the Global Security directly
through DTC if they are participants in such system, or indirectly through
organizations which are participants in such system.
The Indenture will not provide for issuance of Notes in definitive form
except in limited circumstances, described below under "--Certificated Notes."
The laws of some states require that certain persons take physical delivery in
definitive form of securities that they own and that security interests in
negotiable instruments can only be perfected by delivery of certificates
representing the instruments. Consequently, the ability to transfer the Notes
or to pledge the Notes as collateral to persons in such states will be limited
to such extent. For certain other restrictions on the transferability of the
Notes, see "Transfer Restrictions."
125
<PAGE>
So long as DTC or its nominee is the registered owner or holder of the
Global Security, DTC or such nominee, as the case may be, will be considered
the sole record owner or holder of the Notes represented by such Global
Security for all purposes under the Indenture and the Notes. No beneficial
owners of an interest in the Global Security will be able to transfer that
interest except in accordance with the applicable procedures of DTC or
Euroclear, in addition to those provided for under the Indenture. Beneficial
owners of an interest in a Global Security will not be entitled to have Notes
represented by such Global Security registered in their names, will not
receive or be entitled to receive physical delivery of Notes in definitive
form, and will not be considered the owners or holders thereof under the
Indenture for any purpose, including with respect to the giving of any
direction, instruction or approval to the Trustee thereunder. As a result, the
ability of a person having a beneficial interest in Notes represented by a
Global Security to pledge or transfer such interest to persons or entities
that do not participate in DTC's system or otherwise to take action with
respect to such interest, may be affected by lack of a physical certificate
evidencing such interest.
Accordingly, each holder owning a beneficial interest in a Global Security
must rely on the procedures of DTC or Euroclear and, if such holder is not a
participant or an indirect participant, on the procedures of the participant
through which such holder owns its interest, to exercise any rights of a
holder of Notes under the Indenture or such Global Security. The Company
understands that under existing practice, in the event the Company requests
any action of holders of Notes or a holder that is an owner of a beneficial
interest in a Global Security requests any action of holders of Notes or a
holder that is an owner of a beneficial interest in a Global Security desires
to take any action that DTC as the holder of such Global Security, is entitled
to take, DTC would authorize the participants to take such action and the
participant would authorize holders owning through such participants to take
such action or would otherwise act upon the instruction of such holders.
Payments of the principal of, premium, if any, and interest on the Global
Security will be made to DTC or its nominee, as the case may be, as the
registered owner thereof. Neither the Company, the Trustee, nor any paying
agent will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in
the Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
The Company expects that DTC or its nominee, upon receipt of any payment of
principal, premium, if any, or interest in respect of the Global Security,
will credit participants' accounts with payments in amounts proportionate to
their respective beneficial ownership interests in the principal amount of
such Global Security, as shown on the records of DTC or its nominee. The
Company also expects that payments by participants to owners of beneficial
interests in such Global Security held through such participants will be
governed by standing instructions and customary practices, as is now the case
with securities held for the accounts of customers registered in the names of
nominees for such customers. Such payments will be the responsibility of such
participants.
Transfers between participants in DTC will be effected in the ordinary way
in accordance with DTC rules and will be settled in immediately available
funds.
Neither the Company nor the Trustee will have any responsibility for the
performance by DTC or its participants or indirect participants of their
respective obligations under the rules and procedures governing their
operations. Although DTC and its participants have agreed to the foregoing
procedures to facilitate transfers of interests in the Global Security among
participants, it is under no obligation to perform such procedures, and such
procedures may be discontinued at any time. Neither the Company nor the
Trustee will have any responsibility for the performance by DTC or its
participants or indirect participants of their respective obligations under
the rules and procedures governing their operations.
The information in this section concerning DTC and DTC's book-entry system
has been obtained from sources that the Company believes to be reliable, but
the Company takes no responsibility for the accuracy thereof.
126
<PAGE>
CERTIFICATED SECURITIES
If (i) the Company notifies the Trustee in writing that DTC is no longer
willing or able to act as a depository or DTC ceases to be registered as a
clearing agency under the Exchange Act and the Company is unable to locate a
qualified successor within 90 days, (ii) the Company, at its option, notifies
the Trustee in writing that it elects to cause the issuance of Notes in
definitive form under the Indenture or (iii) upon the occurrence of certain
other events, then, upon surrender by DTC of its Global Securities, definitive
Notes in registered form without coupons will be issued, subject to certain
certification requirements, to each person that DTC identifies as the
beneficial owner of the Notes represented by the Global Security.
127
<PAGE>
PLAN OF DISTRIBUTION
Each broker-dealer that receives New Notes for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Notes. This Prospectus, as it may be
amended or supplemented from time to time, may be used by a broker-dealer in
connection with resales of New Notes received in exchange for Existing Notes
where such Existing Notes were acquired as a result of market-making
activities or other trading activities. The Issuers have agreed that, for a
period of 90 days after the Expiration Date, they will make this Prospectus,
as amended or supplemented, available to any broker-dealer for use in
connection with any such resale. In addition, until , 1998, all dealers
effecting transactions in the New Notes may be required to deliver a
prospectus.
The Issuers will not receive any proceeds from any sale of New Notes by
broker-dealers. New Notes received by broker-dealers for their own account
pursuant to the Exchange Offer may be sold from time to time in one or more
transactions in the over-the-counter market, in negotiated transactions,
through the writing of options on the New Notes or a combination of such
methods of resale, at market prices prevailing at the time of resale, at
prices related to such prevailing market prices or negotiated prices. Any such
resale may be made directly to purchasers or to or through brokers or dealers
who may receive compensation in the form of commissions or concessions from
any such broker-dealer or the purchasers of any such New Notes. Any broker-
dealer that resells New Notes that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such New Notes may be deemed to be an "underwriter" within the
meaning of the Securities Act and any profit or any such resale of New Notes
and any commissions or concessions received by any such persons may be deemed
to be underwriting compensation under the Securities Act. The Letter of
Transmittal states that, by acknowledging that it will deliver and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it
is an "underwriter" within the meaning of the Securities Act.
For a period of 90 days after the Expiration Date the Issuers will promptly
send additional copies of this Prospectus and any amendment or supplement to
this Prospectus to any broker-dealer that requests such documents in the
Letter of Transmittal. The Issuers have agreed to pay all expenses incident to
the Exchange Offer (including the expenses of one counsel for the Holders of
the Existing Notes) other than commissions or concessions of any broker-
dealers and will indemnify the Holders of the Existing Notes (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.
Credit Suisse First Boston, a Swiss Bank and an affiliate of Credit Suisse
First Boston Corporation, is the administrative agent with respect to the
Senior Credit Agreement. Credit Suisse First Boston Corporation provided
certain financial advisory services to the Company in connection with the
Acquisition and received customary compensation in connection therewith. In
addition, Credit Suisse First Boston and its affiliates perform various
investment banking and commercial banking services from time to time for
Sponsor and its affiliates.
Chase Securities Inc. is an affiliate of The Chase Manhattan Bank which is a
lender to the Issuers under the Senior Credit Agreement and has provided loans
to certain members of management in connection with their purchase of equity
of Parent. In addition, Chase Securities Inc. and its affiliates perform
various investment banking and commercial banking services from time to time
for Sponsor and its affiliates, and an affiliate of Chase Securities Inc. is a
limited partner of CD&R Fund V.
LEGAL MATTERS
The validity of the Notes and the Guarantees will be passed upon for the
Issuers and the Note Guarantors by Debevoise & Plimpton, New York, New York
and certain other matters will be passed upon for the Parent, Jafra S.A. and
the Note Guarantors by Bonn & Schmitt, Luxembourg, and Ritch, Heather y
Mueller, S.C., Mexico City, Mexico. Franci J. Blassberg, Esq., a member of
Debevoise & Plimpton, is married to Joseph L. Rice, III, who is a shareholder
of the general partner of CD&R Fund V.
128
<PAGE>
EXPERTS
The audited combined financial statements of the Company and its
subsidiaries as of December 31, 1997 and 1996 and for each of the years in the
three-year period ended December 31, 1997 have been included herein and in the
registration statement in reliance upon the report of KPMG Peat Marwick LLP,
independent certified public accountants, appearing elsewhere herein, and upon
the authority of said firm as experts in accounting and auditing.
The combined balance sheet of CDRJ Investments (Lux) S.A. as of April 28,
1998 included in this prospectus has been audited by Deloitte & Touche LLP,
independent auditors, as stated in their report appearing herein, and is
included in reliance upon the report of such firm given upon their authority
as experts in accounting and auditing.
129
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Independent Auditors' Report.............................................. F-2
Combined Balance Sheets -- As of December 31, 1997 and 1996............... F-3
Combined Statements of Operations -- For the years ended December 31,
1997, 1996 and 1995...................................................... F-4
Combined Statements of Divisional Equity -- For the years ended December
31, 1997, 1996 and 1995.................................................. F-5
Combined Statements of Cash Flows -- For the years ended December 31,
1997, 1996 and 1995...................................................... F-6
Notes to Combined Financial Statements.................................... F-7
Independent Auditors' Report.............................................. F-20
Combined Balance Sheet -- CDRJ Investments (Lux) S.A. -- as of April 28,
1998..................................................................... F-21
Notes to Combined Balance Sheet........................................... F-22
Unaudited:
Consolidated Balance Sheet -- As of June 30, 1998....................... F-23
Consolidated Statements of Operations for the periods ended June 30,
1998, April 30, 1998 and June 30, 1997................................. F-24
Consolidated Statements of Cash Flows for the periods ended June 30,
1998, April 30, 1998 and June 30, 1997................................. F-25
Notes to Consolidated Financial Statements.............................. F-26
</TABLE>
F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Stockholders and Board of Directors
Jafra Cosmetics International:
We have audited the accompanying combined financial statements of Jafra
Cosmetics International, as defined in note 1, as listed in the accompanying
index. These combined financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
combined financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the combined financial statements referred to above present
fairly, in all material respects, the financial position of Jafra Cosmetics
International as of December 31, 1997 and 1996 and the results of its
operations and its cash flows for each of the years in the three-year period
ended December 31, 1997 in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
February 27, 1998
Los Angeles, California
F-2
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
COMBINED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
(IN THOUSANDS)
<TABLE>
<CAPTION>
1997 1996
--------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents................................. $ 10,231 $ 8,662
Receivables, less allowance for doubtful accounts of
$2,057 and
$1,919, respectively..................................... 27,298 26,271
Inventories (note 3)...................................... 38,028 45,141
Due from Gillette and other divisions (note 9)............ 39,885 24,416
Prepaid expenses and other current assets................. 3,197 2,540
Prepaid income taxes (note 7)............................. -- 814
--------- --------
Total current assets.................................... 118,639 107,844
Property, plant and equipment, at cost, net (note 4)........ 43,682 41,795
Goodwill, less accumulated amortization..................... 10,269 10,591
Other assets................................................ 2,660 4,231
--------- --------
$ 175,250 $164,461
========= ========
LIABILITIES AND DIVISIONAL EQUITY
Current liabilities:
Short-term notes payable to bank (note 5)................. $ 8,513 $ --
Accounts payable and accrued liabilities (note 6)......... 35,384 39,066
Due to Gillette and other divisions (note 9).............. 45,440 41,046
Deferred income taxes (note 7)............................ 711 3,307
Income taxes payable (note 7)............................. 5,978 --
--------- --------
Total current liabilities............................... 96,026 83,419
Other long-term liabilities................................. 1,920 2,401
--------- --------
Total liabilities....................................... 97,946 85,820
--------- --------
Divisional equity........................................... 77,304 78,641
Commitments and contingencies (note 11)
--------- --------
$ 175,250 $164,461
========= ========
</TABLE>
See accompanying notes to combined financial statements.
F-3
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
COMBINED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Net sales....................................... $229,524 $224,544 $218,431
Cost of sales................................... 59,129 58,216 54,310
-------- -------- --------
Gross profit................................ 170,395 166,328 164,121
Selling, general and administrative expenses
(note 9)....................................... 149,430 155,759 154,024
-------- -------- --------
Income from operations...................... 20,965 10,569 10,097
Other (expense) income:
Exchange gain (loss).......................... 312 (7) 25,459
Interest income, net (note 9)................. 306 834 4,343
Other expense, net............................ (1,318) (1,383) (982)
-------- -------- --------
Income before income taxes and extraordinary
credit..................................... 20,265 10,013 38,917
Income taxes (note 7)........................... 4,816 2,620 6,095
-------- -------- --------
Income before extraordinary credit.......... 15,449 7,393 32,822
Extraordinary credit, net of tax of $934--
forgiveness of debt (note 9) -- 2,646 --
-------- -------- --------
Net income.................................. $ 15,449 $ 10,039 $ 32,822
======== ======== ========
</TABLE>
See accompanying notes to combined financial statements.
F-4
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
COMBINED STATEMENTS OF DIVISIONAL EQUITY
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
CUMULATIVE
FOREIGN
ADDITIONAL CURRENCY TOTAL
COMMON PAID- TRANSLATION RETAINED DIVISIONAL
STOCK IN CAPITAL ADJUSTMENT EARNINGS EQUITY
------- ---------- ----------- -------- ----------
<S> <C> <C> <C> <C> <C>
Balance at December 31,
1994....................... $46,853 $1,918 $ (7,613) $83,774 $124,932
Net income.................. -- -- -- 32,822 32,822
Dividends paid to Gillette.. -- -- -- (5,600) (5,600)
Capital of new division
included in combined group. 788 -- -- -- 788
Translation adjustment...... -- -- (45,444) -- (45,444)
Divestiture of an
international division..... -- -- 1,237 -- 1,237
------- ------ -------- ------- --------
Balance at December 31,
1995....................... 47,641 1,918 (51,820) 110,996 108,735
Net income.................. -- -- -- 10,039 10,039
Dividends paid to Gillette.. -- -- -- (37,970) (37,970)
Translation adjustment...... -- -- (2,163) -- (2,163)
------- ------ -------- ------- --------
Balance at December 31,
1996....................... 47,641 1,918 (53,983) 83,065 78,641
Net income.................. -- -- -- 15,449 15,449
Dividends paid to Gillette.. -- -- -- (18,355) (18,355)
Capital of new division
included in combined group. 1,926 -- -- -- 1,926
Translation adjustment...... -- -- (357) -- (357)
------- ------ -------- ------- --------
Balance at December 31,
1997....................... $49,567 $1,918 $(54,340) $80,159 $ 77,304
======= ====== ======== ======= ========
</TABLE>
See accompanying notes to combined financial statements.
F-5
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
COMBINED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
1997 1996 1995
-------- ------- -------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income....................................... $ 15,449 $10,039 $32,822
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss (gain) on disposal of property and
equipment..................................... (126) 3,462 --
Depreciation and amortization.................. 4,361 3,317 2,761
Changes in assets and liabilities:
(Increase) decrease in:
Receivables.................................. (1,027) (3,733) 7,660
Inventories.................................. 7,113 (8,406) 4,151
Prepaid expenses and other current assets.... (657) 1,011 2,304
Other assets................................. 1,571 636 (22)
Increase (decrease) in:
Accounts payable and accrued liabilities..... (3,682) (976) (7,364)
Deferred income taxes........................ (2,596) (9,253) 10,288
Income taxes payable......................... 6,792 9,245 (25,287)
Other long-term liabilities.................. (481) 66 154
-------- ------- -------
Net cash provided by operating activities... 26,717 5,408 27,467
-------- ------- -------
Cash flows from investing activities:
Proceeds from sale of property and equipment..... 3,132 5,805 6,428
Purchases of property and equipment.............. (8,932) (10,313) (20,319)
-------- ------- -------
Net cash used in investing activities....... (5,800) (4,508) (13,891)
-------- ------- -------
Cash flows from financing activities:
Net proceeds from bank debt...................... 8,513 -- --
Capital contributions by Gillette................ 1,926 -- 788
Dividends paid to Gillette....................... (18,355) (37,970) (5,600)
Transactions with Gillette and other divisions... (11,075) 40,365 (8,567)
-------- ------- -------
Net cash (used in) provided by financing
activities................................. (18,991) 2,395 (13,379)
-------- ------- -------
Effect of exchange rate change on cash............ (357) (2,163) 894
-------- ------- -------
Net increase in cash and cash equivalents... 1,569 1,132 1,091
Cash and cash equivalents at beginning of year.... 8,662 7,530 6,439
-------- ------- -------
Cash and cash equivalents at end of year.......... $ 10,231 $ 8,662 $ 7,530
======== ======= =======
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest....................................... $ 2,811 $ 3,657 $ 5,767
Taxes.......................................... $ 4,313 $ 441 $ 4,157
-------- ------- -------
</TABLE>
See accompanying notes to combined financial statements.
F-6
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) BASIS OF PRESENTATION
The combined financial statements of Jafra Cosmetics International (the
"Company") include the following subsidiaries and divisions of The Gillette
Company ("Gillette"): Jafra Cosmetics International, Inc., a California
corporation; Jafra Cosmetics GmbH, a German company; Jafra Cosmetics
International B.V., a Netherlands company; Jafra Cosmetics S.p.A., an Italian
company; Jafra Cosmetics A.G., a Swiss company; Grupo Jafra, S.A. de C.V., a
Mexican company, and its Subsidiaries, together with certain operating assets
and the related operating profit of Gillette Braun used in the Jafra business
in Mexico (the "Braun Assets"); the divested operations of the Company,
principally in Portugal, Spain, Brazil and the United Kingdom (collectively
the "Divested Markets"); the Jafra related operations of Gillette affiliates
in Austria, Argentina, Colombia and Venezuela; and the assets related to the
Jafra intellectual property, held by Gillette, that are used in the Jafra
business.
All interdivisional balances and transactions between the entities have been
eliminated. Accounts of subsidiaries and operations outside the United States
are included on the basis of fiscal years generally ending November 30.
Accordingly, the accompanying combined financial statements include the
accounts of these subsidiaries and operations for the twelve months ended
November 30. No significant events occurred in the month of December of any of
the fiscal years presented that would have a material impact upon the combined
financial statements presented herein.
The common stock of the Company primarily represents the stock of Jafra
Cosmetics International, Inc., a California corporation. Given the combined
group are all subsidiaries of Gillette, earnings per share data is omitted
from the accompanying combined financial statements.
The Company is a leading direct seller of high-quality skin and body care
products, color cosmetics, fragrances, nutritional supplements and other
personal care products. The Company's products are sold through a personalized
direct selling system comprised of approximately 221,000 self-employed sales
representatives operating worldwide. The Company is headquartered in Westlake
Village, California and has major manufacturing operations in Westlake Village
and in Naucalpan, Mexico.
The accompanying combined financial statements were prepared in
contemplation of the transaction between Gillette and a third party, effective
April 30, 1998. Upon consummation of this transaction certain purchase
accounting adjustments were made pursuant to generally accepted accounting
principles. No such adjustments were made to the accompanying combined
financial statements.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash, time deposits and all highly liquid
debt instruments with an original maturity of three months or less.
INVENTORIES
Inventories are stated at the lower of cost, as determined by the first-in,
first-out (FIFO) basis, or market.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost. Depreciation of plant and
equipment is provided over the estimated useful lives of the respective assets
on the straight-line method. Estimated useful lives are 40 years for building
and improvements and 3 to 10 years for machinery and equipment.
F-7
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
Maintenance and repairs, including cost of minor replacements, are charged
to operations as incurred. Costs of additions and betterments are added to
property and equipment accounts provided that such expenditures increase the
useful life or the value of the asset.
INTANGIBLE ASSETS
Intangible assets principally consist of goodwill, which is amortized on the
straight-line method, generally over a period of 37.5 years. The carrying
amounts of intangible assets are assessed for impairment when income from
operations from the applicable related business indicates that the carrying
amounts of the assets may not be recoverable. No write-downs for impairment
were recorded during the years ended December 31, 1997, 1996 and 1995.
IMPAIRMENT OF LONG-LIVED ASSETS AND ASSETS HELD FOR SALE
In March 1995, the Financial Accounting Standards Board issued Statement No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of." The statement is effective for fiscal years
beginning after December 15, 1995. The statement establishes accounting
standards for the recognition and measurement of impairment of long-lived
assets, certain identifiable intangibles and goodwill either to be held or
disposed of. The Company adopted Statement No. 121 in 1996. The adoption did
not have a material impact on the Company's financial position or results of
operations.
As part of an ongoing review of the valuation and amortization of intangible
assets, management assesses the carrying value of the Company's intangible
assets if facts and circumstances suggest that it may be impaired. If this
review indicates that the intangibles will not be recoverable, as determined
by an undiscounted operating cash flow analysis over the remaining
amortization period, the carrying value of the Company's intangibles would be
reduced to its estimated fair market value.
FINANCIAL INSTRUMENTS
The carrying amounts of cash, short-term investments, receivables, accounts
payable and accrued liabilities, and loans payable approximate fair value
because of the short-term maturities of these instruments. The carrying
amounts of other long-term liabilities are based upon the present value of
such liabilities. The carrying amounts of interdivisional accounts approximate
fair value.
The fair value of the Company's short-term debt instruments, which
approximate the carrying values, are based upon the current rates offered to
the Company for similar maturities.
ADVERTISING
Advertising costs are expensed as incurred. Total advertising expense
aggregated $250,000, $348,000 and $409,000 for the years ended December 31,
1997, 1996 and 1995, respectively.
RESEARCH AND DEVELOPMENT
Research and development costs are expensed as incurred. Total research and
development expense aggregated $2,911,000, $3,319,000 and $3,098,000 for the
years ended December 31, 1997, 1996 and 1995, respectively.
OTHER EXPENSES
Included in other, net are credit card fees incurred of $904,000, $841,000
and $637,000 for the years ended December 31, 1997, 1996 and 1995,
respectively.
F-8
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
INCOME TAXES
Income taxes are recorded using the asset and liability method whereby
deferred tax assets and liabilities are recognized for the temporary
differences between the financial statement carrying amounts and the tax bases
of the Company's assets, liabilities and loss and tax credit carryforwards at
income tax rates expected to be in effect when such amounts are realized or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in earnings in the period that includes the enactment
date.
FOREIGN CURRENCY TRANSLATION
All assets and liabilities of foreign subsidiaries and divisions are
translated into U.S. dollars at fiscal year-end exchange rates. Income and
expense items are translated at average exchange rates prevailing during the
fiscal year. Where the U.S. dollar is the functional currency, translation
adjustments are recorded in income.
NEW ACCOUNTING STANDARDS
In June 1997, the Financial Accounting Standards Board issued Statement No.
130, "Reporting Comprehensive Income" (SFAS 130), and Statement No. 131,
"Disclosure about Segments of an Enterprise and Related Information" (SFAS
131). The Company is required to adopt these statements in fiscal year 1998.
SFAS 130 establishes new standards for reporting and displaying comprehensive
income and its components. SFAS 131 requires disclosure of certain information
regarding operating segments, products and services, geographic areas of
operations and major customers. Management has not yet determined whether the
above statements will have a material impact on the Company's combined
financial position, results of operations or cash flows.
USE OF ESTIMATES
The preparation of combined financial statements in conformity with
generally accepted accounting principles requires management to make certain
estimates and assumptions. These affect the reported amounts of assets,
liabilities, revenues and expenses and the amount of any contingent assets or
liabilities disclosed in the financial statements. Actual results could differ
from the estimates made.
(3) INVENTORIES
Inventories are summarized as follows at December 31, 1997 and 1996 (in
thousands):
<TABLE>
<CAPTION>
1997 1996
------- -------
<S> <C> <C>
Raw materials and supplies............................... $ 8,439 $ 9,246
Work in process.......................................... 198 1,385
Finished goods........................................... 29,391 34,510
------- -------
$38,028 $45,141
======= =======
</TABLE>
F-9
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
(4) PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows at December 31, 1997
and 1996 (in thousands):
<TABLE>
<CAPTION>
1997 1996
------- --------
<S> <C> <C>
Land................................................... $ 6,072 $ 6,072
Buildings.............................................. 17,150 16,925
Machinery and equipment................................ 40,173 35,923
------- --------
63,395 58,920
Less accumulated depreciation.......................... (26,528) (23,681)
------- --------
36,867 35,239
Land held for sale..................................... 6,815 6,556
------- --------
$43,682 $ 41,795
======= ========
</TABLE>
(5) SHORT-TERM NOTES PAYABLE TO BANK
Short-term notes payable to bank consist of three loans to foreign banks
which are payable in foreign currencies and bear interest at rates ranging
between 2.9% and 3.15%. All loans are due in fiscal year 1998.
(6) ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are summarized as follows at
December 31, 1997 and 1996 (in thousands):
<TABLE>
<CAPTION>
1997 1996
------- -------
<S> <C> <C>
Accounts payable......................................... $12,688 $16,375
Advertising and sales promotion.......................... 12,608 11,748
Payroll and payroll taxes................................ 2,427 3,306
State and local sales taxes.............................. 1,455 1,318
Miscellaneous............................................ 6,206 6,319
------- -------
$35,384 $39,066
======= =======
</TABLE>
(7) INCOME TAXES
The Company's income is included in Gillette's consolidated U.S. income tax
return. For financial reporting purposes, the Company has provided income
taxes (benefit) on a separate-company basis. Income tax expense is summarized
as follows (in thousands):
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Current:
Federal...................................... $ 222 $(1,095) $(1,388)
Foreign:
Mexico..................................... 4,717 3,391 7,743
Western Europe............................. 1,938 1,954 1,584
United Kingdom............................. -- -- 804
Canada..................................... 854 -- --
Other...................................... -- 127 154
------- ------- -------
7,731 4,377 8,897
State........................................ (170) (380) (568)
------- ------- -------
Total current............................ 7,561 3,997 8,329
Deferred -- foreign -- Mexico.................. (2,745) (443) (2,234)
------- ------- -------
$ 4,816 $ 3,554 $ 6,095
======= ======= =======
</TABLE>
F-10
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
Actual income tax rate differs from the "expected" tax rate (computed by
applying the U.S. Federal corporate rate of 35% to income before income taxes)
as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----- ----- -----
<S> <C> <C> <C>
Statutory Federal tax rate............................ 35.0% 35.0% 35.0%
State taxes, net of Federal tax benefit............... .1 (.7) (.3)
Reduction in valuation allowance...................... (2.5) (2.1) (.8)
Effect of foreign operations.......................... (11.4) (10.9) (20.4)
Other................................................. 2.6 4.8 2.2
----- ----- -----
Effective tax rate.................................. 23.8% 26.1% 15.7%
===== ===== =====
</TABLE>
The components of deferred tax assets and deferred tax liabilities are shown
below (in thousands):
<TABLE>
<CAPTION>
1997 1996
------- --------
<S> <C> <C>
Deferred tax assets:
Accounts receivable, principally due to allowance for
doubtful accounts........................................ $ 584 $ 534
Inventory, principally due to additional costs capitalized
for tax purposes and accrued reserves.................... 1,833 2,376
Accrued liability relating to compensation-related ex-
pense.................................................... 299 291
Advertising and sales promotion........................... 1,946 1,701
Other accrued liabilities................................. 819 724
Fixed assets, principally attributable to differences in
depreciation methods..................................... 1,274 1,428
Other..................................................... 1,319 1,220
------- --------
Total deferred tax assets............................... 8,074 8,274
Less valuation allowance.................................. (965) (1,524)
------- --------
Net deferred tax assets................................. 7,109 6,750
------- --------
Deferred tax liabilities:
Depreciation.............................................. (1,841) (1,684)
Inventory reserves........................................ (5,979) (8,373)
------- --------
Total deferred tax liabilities.......................... (7,820) (10,057)
------- --------
Net deferred tax liabilities............................ $ (711) $ (3,307)
======= ========
</TABLE>
The Company records a valuation allowance on the deferred tax assets to
reduce the total to an amount that management believes will ultimately be
realized. The changes in the valuation allowance from 1996 to 1997 are due
principally to changes in the recorded reserves against inventories in the
United States. Realization of deferred tax assets is dependent upon sufficient
future taxable income during the period that temporary differences and
carryforwards are expected to be available to reduce taxable income.
(8) RETIREMENT BENEFITS
The Company participates in The Gillette Company Retirement Plan (the Plan)
which is a defined benefit pension plan covering substantially all of
Gillette's domestic employees. Benefits are based on age, years of service and
the level of compensation during the final years of employment. Gillette's
funding policy is to contribute annually to the Plan the amount necessary to
meet the minimum funding standards established by the Employee Retirement
Income Security Act.
F-11
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
The components of Gillette's net pension expense for the Plan for the years
ended December 31, 1997, 1996 and 1995 were as follows (in thousands):
<TABLE>
<CAPTION>
1997 1996 1995
--------- --------- ---------
<S> <C> <C> <C>
Service cost--benefits earned.............. $ 29,892 $ 28,828 $ 24,185
Interest cost on projected benefit
obligation................................ 60,245 55,731 53,440
Actual return on Plan assets............... (184,649) (118,046) (152,662)
Net amortization and deferral.............. 116,569 64,129 113,161
--------- --------- ---------
Pension expense.......................... $ 22,057 $ 30,642 $ 38,124
========= ========= =========
</TABLE>
The Company's share of the above pension expense was $970,000, $1,223,000
and $1,250,000 in 1997, 1996 and 1995, respectively. The Company's share of
pension expense is based on the Company's payroll covered by the Plan as a
percentage of total payroll covered by the Plan.
The funded status of the Plan is as follows (in thousands):
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- ---------
<S> <C> <C> <C>
Vested benefits.............................. $693,835 $629,252 $ 601,462
Nonvested benefits........................... 94,981 89,185 88,062
-------- -------- ---------
Accumulated benefit obligation............. 788,816 718,437 689,524
Benefit obligation related to future
compensation levels......................... 170,642 160,792 147,752
-------- -------- ---------
Projected benefit obligation............... 959,458 879,229 837,276
Fair value of Plan assets, invested primarily
in equities and debt securities............. 990,026 815,737 689,658
-------- -------- ---------
Projected benefit obligation in excess of
Plan assets............................... 30,568 (63,492) (147,618)
Unrecognized transition obligation........... 1,648 1,097 325
Unrecognized prior service cost.............. 11,478 7,750 17,720
Unrecognized net loss........................ 9,178 97,173 158,801
Minimum liability adjustment................. (25,459) (25,828) (23,352)
-------- -------- ---------
Gillette's prepaid pension cost.............. $ 27,413 $ 16,700 $ 5,876
======== ======== =========
</TABLE>
The primary assumptions used in determining obligations of the Plan are as
follows:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Discount rate............................................ 7.00% 7.00% 6.75%
Increase in compensation levels.......................... 5.00 5.00 5.00
Long-term rate of return on assets....................... 9.00% 9.00% 9.00%
==== ==== ====
</TABLE>
The Company also participates in Gillette's plans which provide certain
health care and life insurance benefits to retired employees. Substantially
all of the Company's employees become eligible for these benefits upon
retirement. At the time of retirement, employees who elect to participate are
required to pay some portion of such medical costs if hired before July 1,
1990, or all of such costs if hired after that date. Gillette's employee stock
ownership plan (ESOP) was established to assist employees who retire after
January 1, 1992 to finance their retiree medical costs.
F-12
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
The Company recognizes the cost of postretirement benefits other than
pensions during employees' active working lives. The components of Gillette's
net other postretirement benefit expense follow (in thousands):
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Interest cost................................... $17,008 $19,181 $23,376
Service cost.................................... 4,758 1,652 151
Actual return on assets......................... (6,010) (3,543) (3,360)
Net amortization expense........................ (3,631) (906) (993)
------- ------- -------
Other postretirement benefit expense.......... $12,125 $16,384 $19,174
======= ======= =======
</TABLE>
The Company's share of the above other postretirement benefit expense for
1997, 1996 and 1995 was $128, $205 and $306, respectively. The status of
Gillette's plans and the amounts recognized in the balance sheets follow (in
thousands):
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Retirees..................................... $162,739 $171,854 $182,179
Fully eligible active employees.............. 18,356 25,341 30,770
Other active employees....................... 66,735 69,126 67,208
-------- -------- --------
Accumulated postretirement benefit
obligation................................ 247,830 266,321 280,157
Fair value of plan assets.................... (33,249) (24,000) (17,375)
Unrecognized net gain........................ 86,947 67,636 47,327
-------- -------- --------
Gillette's accrued postretirement liability.. $301,528 $309,957 $310,109
======== ======== ========
</TABLE>
The accumulated postretirement benefit obligation was determined using an
assumed discount rate of 7.00%, 7.00% and 6.75% in 1997, 1996 and 1995,
respectively. The assumed health care cost trend rate was 9%, 10% and 11% in
1997, 1996 and 1995, respectively, decreasing to 5% by the year 2001. A one
percentage point increase in the trend rate would have increased Gillette's
accumulated postretirement benefit obligation by 12% and interest and service
cost by 14% in 1997.
ESOP shares allocated to participants reduce Gillette obligations over the
period of allocation. The account balance is assumed to have an annual yield
of 12%. In addition, Gillette established a retiree health benefits account
within its pension plan that will be used to partially fund health care
benefits for future retirees.
Certain of the Company's Germany employees participate in the Germany Plan,
which is a defined benefit pension plan covering key employees. Benefits are
based on age, years of service and the level of compensation during the final
years of employment. The Company's funding policy is to contribute annually to
the Germany Plan the amount necessary to meet the minimum funding standards.
The total pension expense amounted to $140,000, $245,000 and $321,000 for the
years ended December 31, 1997, 1996 and 1995, respectively.
Under Mexican Labor Laws, employees of Grupo Jafra, S.A. de C.V. and its
Subsidiaries are entitled to a payment when they leave the Company if they
have fifteen or more years of service. In addition, the Company makes
government mandated employee profit sharing distributions equal to ten percent
of the taxable income of the company in which they work.
Certain key employees of the Company have been granted options to purchase
stock of The Gillette Company. Gillette applies APB Opinion No. 25 and related
Interpretations in accounting for these options. Accordingly, no compensation
cost has been allocated to the Company. The fair value of each option granted
by
F-13
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
Gillette has been estimated on the date of the grant using the Black Scholes
option pricing model, with the following assumptions used for grants in 1997,
1996 and 1995:
<TABLE>
<CAPTION>
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
Risk-free interest rate....................................... 6.6% 6.5% 6.0%
Expected option life (in years)............................... 4.6 4.6 4.6
Expected volatility........................................... 19.2% 22.0% 22.4%
Expected dividend yield....................................... .9% 1.2% 1.4%
</TABLE>
Had the Company recorded an allocated charge for the fair value of options
granted consistent with FASB Statement 123, proforma net income would have
been as follows (in thousands):
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Net income, as reported................................ $15,449 $10,039 $32,822
Fair value of options granted.......................... 2,800 1,800 1,100
------- ------- -------
Pro forma net income................................... $12,649 $ 8,239 $31,722
======= ======= =======
</TABLE>
(9) RELATED PARTIES
Certain expenses are charged by Gillette to the Company. Management believes
the amounts and methods of allocation are reasonable and approximate actual
services provided. The allocations are based principally upon a formula using
the percentage of revenues of the Company to the total consolidated revenues
of Gillette. Management performs regular reviews of the allocated costs and
has determined that the cost of these reserves to the Company, as if it were a
stand-alone entity, would be comparable to the costs allocated to it by
Gillette. Such services include legal, trademark and patent support, internal
audit, and other administrative costs. Total related net charges were
$2,045,000, $2,495,000 and $2,550,000 in 1997, 1996 and 1995, respectively,
and are included in selling, general and administrative expenses in the
accompanying combined statements of operations.
Jafra Cosmetics International, Inc. provides certain management services to
Grupo Jafra, S.A. de C.V., an affiliated subsidiary of the Company, which are
general and administrative in nature. Total related services amounted to
$5,373,000, $3,933,000 and $3,613,000 in 1997, 1996 and 1995, respectively,
and have been eliminated in the accompanying combined statements of
operations.
During 1997, Jafra Cosmetics International, Inc. wrote off approximately
$3,200,000 of payables due from its affiliate in Canada, as a result of the
decision to close the market in Canada. The division in Canada recorded this
as a credit to earnings. Accordingly, these transactions offset in
combination.
Interest is charged and earned on affiliated payables and receivables at the
LIBOR rate. The total related interest was $592,000, $41,000 and $2,890,000 in
1997, 1996 and 1995, respectively, and is included in interest, net in the
accompanying combined statements of operations.
The Company transferred $32,330,000, $20,058,000 and $17,894,000 of
inventory to intercompanies and affiliates at prices covering materials, labor
and overhead during 1997, 1996 and 1995, respectively.
Extraordinary credit for the year ended December 31, 1996 represents the
forgiveness of liabilities due to an affiliate of Gillette related to the
divestiture of the Brazil market. The affiliated company was not a subsidiary
of Gillette nor did it exercise control over the divested entity. All other
assets and liabilities were liquidated with a nominal impact on the combined
financial statements. The amount has been recorded net of the income tax
effect of $934,000.
F-14
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
In addition, Gillette acts as a cash manager for the Company. As such,
balances due to/from Gillette and other divisions consist of amounts related
to this and the above transactions.
In 1996, the Company decided to cease the development and installation of
certain proprietary computer systems, including hardware, software, and
related installation costs, due to the failure of the outside contractor to
properly install and support the system. It was determined that the Company
would never gain any benefit from these assets and that the net book value of
the assets was not recoverable. A loss of $5.4 million was recorded
representing the net book value of the related assets at the time of
Management's decision. The related depreciation expense was minor as
depreciation had not yet begun because the assets were not placed into
service. This loss was included in selling, general and administrative
expenses in the 1996 statement of operations. In 1997, the Company brought
legal action against the outside contractor and recovered $2.3 million in
damages. This amount was recorded and included in selling, general and
administrative expenses in the 1997 statement of operations.
Income from operations for the years ended December 31, 1997, 1996 and 1995
included net charges of $3,500,000, $700,000 and $9,600,000, respectively.
In 1997, the net charge resulted from realignment programs in Italy and the
South American markets. The Company paid severance and exit costs of $2.6
million. Additionally, decisions were made during 1997 to close the Hungary
and Canada markets resulting in an estimated loss of $900,000 principally
related to severance, closure (lease costs) and other exit costs. The net
charge of $3.5 million was included in income from operations in 1997. The
operations in Italy, South America, Hungary and Canada were such that
impairment write downs were not necessary prior to their closure. The charges
were recorded pursuant to EITF 94-3 which addresses accounting for
restructuring charges. The Company concluded that the costs recorded within
these charges were consistent with the guidelines of EITF 94-3.
The 1996 net charge relates to similar reorganization programs whereby the
Company paid additional severance, legal and exit payments to exit the
Brazilian market of $2.4 million. Also during 1996, the Company sold a
building in Mexico as a result of the decision to reorganize and consolidate
the Mexican market. The gain on the sale of the building was $1.7 million,
resulting in a net charge of $700,000 which was included in income from
operations in 1996. No impairment of the related assets was recorded in these
markets as the circumstances indicated that after these changes the continuing
operations in Mexico were profitable and that the assets were recoverable. The
operations in Brazil were such that impairment write downs were not necessary
prior to the closure. The charges were recorded pursuant to EITF 94-3 which
addresses accounting for restructuring charges. The Company concluded that the
costs recorded within these charges were consistent with the guidelines of
EITF 94-3.
The 1995 net charge results from the Company's decision to reorganize and
eliminate redundant functions in the markets within the United States, Italy,
Holland, Germany, Spain and Brazil. The Company entered into several severance
agreements with key executives in these markets and paid approximately $4.0
million related to these agreements. Additionally, the Company paid
approximately $5.6 million related to the severance and related legal costs
associated with the elimination of certain sales force employees. The total
costs of $9.6 million were included in income from operations in 1995. No
impairment of the related assets was recorded in these markets as the
circumstances indicated that after these changes the operations were
profitable and that the assets were recoverable. The charges were recorded
pursuant to EITF 94-3 which addresses accounting for restructuring charges.
The Company has concluded that the costs recorded within these charges were
consistent with the guidelines of EITF 94-3.
F-15
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
(10) FINANCIAL INFORMATION BY GEOGRAPHIC AREA
The following financial information is provided by geographic area (in
thousands):
<TABLE>
<CAPTION>
WESTERN LATIN TOTAL UNITED
EUROPE AMERICA MEXICO OTHER FOREIGN STATES TOTAL
------- ------- ------- ------- -------- ------- --------
1997
<S> <C> <C> <C> <C> <C> <C> <C>
Net sales............... $46,806 $14,204 $97,577 $ 300 $158,887 $70,637 $229,524
======= ======= ======= ======= ======== ======= ========
Income (loss) from oper-
ations................. $ 717 $(2,879) $16,363 $(1,366)(1) $ 12,835(1) $ 8,130(1) $ 20,965
======= ======= ======= ======= ======== ======= ========
Identifiable assets..... $37,277 $10,727 $83,032 $ 4,462 $135,498 $55,510 $191,008
Consolidating and com-
bining adjustments..... (1,104) -- (731) -- (1,835) (13,923) (15,758)
------- ------- ------- ------- -------- ------- --------
Identifiable assets... $36,173 $10,727 $82,301 $ 4,462 $133,663 $41,587 $175,250
======= ======= ======= ======= ======== ======= ========
1996
Net sales............... $60,202 $11,012 $79,548 $ 1,188 $151,950 $72,594 $224,544
======= ======= ======= ======= ======== ======= ========
Income (loss) from oper-
ations................. $ 687 $(1,874) $11,572 $ (978) $ 9,407 $ 1,162 $ 10,569
======= ======= ======= ======= ======== ======= ========
Identifiable assets..... $29,346 $11,019 $82,843 $ 2,956 $126,164 $52,485 $178,649
Consolidating and com-
bining adjustments..... (996) -- (2,764) -- (3,760) (10,428) (14,188)
------- ------- ------- ------- -------- ------- --------
Identifiable assets... $28,350 $11,019 $80,079 $ 2,956 $122,404 $42,057 $164,461
======= ======= ======= ======= ======== ======= ========
1995
Net sales............... $59,815 $12,676 $76,246 $ 918 $149,655 $68,776 $218,431
======= ======= ======= ======= ======== ======= ========
Income (loss) from oper-
ations................. $ 724 $ (166) $12,249 $(1,225) $ 11,582 $(1,026) $ 10,556
Consolidating and com-
bining adjustments..... 552 -- -- (71) 481 (940) (459)
------- ------- ------- ------- -------- ------- --------
Income (loss) from op-
erations............. $ 1,276 $ (166) $12,249 $(1,296) $ 12,063 $(1,966) $ 10,097
======= ======= ======= ======= ======== ======= ========
</TABLE>
All material intercompany transactions have been eliminated.
(1) During 1997, Jafra Cosmetics International, Inc. (United States) wrote off
approximately $3,200,000 of payables due from its affiliate in Canada
(other), as a result of the decision to close the market in Canada. The
division in Canada recorded this as a credit to earnings, accordingly,
these transactions offset in combination. The effects of these
transactions in the above table, however, have been eliminated from the
separate segment presentation to reflect the income from operations
exclusive of this transaction.
(11) COMMITMENTS AND CONTINGENCIES
The Company leases office and warehouse facilities as well as manufacturing,
transportation and data processing equipment under operating leases which
expire at various dates through March 2004. Future minimum lease payments
under noncancelable operating leases as of December 31, 1997 are (in
thousands):
<TABLE>
<S> <C>
1998............................................ $1,322
1999............................................ 1,030
2000............................................ 882
2001............................................ 878
2002............................................ 414
Thereafter...................................... 513
------
$5,039
======
</TABLE>
Certain of the aforementioned operating leases may be terminated upon
transfer or sale of the Company (note 1).
Rental expense amounted to $1,500,000, $1,800,000 and $1,800,000 for the
years ended December 31, 1997, 1996 and 1995, respectively.
F-16
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
The Company is subject to legal proceedings and claims arising out of its
business. Management, after review and consultation with counsel, considers
that any liability from such pending legal proceedings and claims would not
materially affect the combined financial position, results of operations or
liquidity of the Company.
(12) SUPPLEMENTAL INFORMATION
The following combined condensed balance sheets, statements of operations,
and statements of cash flows have been presented in contemplation of the
transaction between Gillette and a third party, as described in Note 1. Such
financial statements have been segregated between those entities that will
guarantee the debt to be issued in connection with the transaction ("Guarantor
entities"), and those entities that will not guarantee such debt
("Nonguarantor entities").
Combining condensed statement of operations data for the years ended
December 31, 1997, 1996 and 1995 is summarized as follows (in thousands):
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
----------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
--------------------------------- ENTITY OTHER REGIONS
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- ---------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $70,637 $46,806 $117,443 $97,577 $14,504 $229,524
Cost of sales........... 18,519 9,638 28,157 27,124 3,848 59,129
------- ------- -------- ------- ------- --------
Gross profit........... 52,118 37,168 89,286 70,453 10,656 170,395
Selling, general and
administrative
expenses............... 43,988(4) 36,451 80,439 54,090 14,901(4) 149,430
------- ------- -------- ------- ------- --------
Income (loss) from
operations............ 8,130 717 8,847 16,363 (4,245) 20,965
Other (income) expense.. 2,001 170 2,171 591 (2,062) 700
------- ------- -------- ------- ------- --------
Income (loss) before
income taxes.......... 6,129 547 6,676 15,772 (2,183) 20,265
Income taxes............ 52 1,938 1,990 1,972 854 4,816
------- ------- -------- ------- ------- --------
Net income (loss)...... $ 6,077 $(1,391) $ 4,686 $13,800 $(3,037) $ 15,449
======= ======= ======== ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
-----------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
--------------------------------- ENTITY OTHER REGIONS
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- ---------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $72,594 $60,202 $132,796 $79,548 $12,200 $224,544
Cost of sales........... 17,872 12,296 30,168 24,696 3,352 58,216
------- ------- -------- ------- ------- --------
Gross profit........... 54,722 47,906 102,628 54,852 8,848 166,328
Selling, general and
administrative
expenses............... 53,560(4) 47,219 100,779 43,280 11,700 155,759
------- ------- -------- ------- ------- --------
Income (loss) from
operations............ 1,162 687 1,849 11,572 (2,852) 10,569
Other (income) expense.. 2,037 269 2,306 (2,014) 264 556
------- ------- -------- ------- ------- --------
Income (loss) before
income taxes
(benefit)............. (875) 418 (457) 13,586 (3,116) 10,013
Income taxes (benefit).. (1,475) 1,954 479 2,948 (807) 2,620
------- ------- -------- ------- ------- --------
Income (loss) before
extraordinary credit.. 600 (1,536) (936) 10,638 (2,309) 7,393
Extraordinary credit.... -- -- -- -- 2,646 2,646
------- ------- -------- ------- ------- --------
Net income (loss)...... $ 600 $(1,536) $ (936) $10,638 $ 337 $ 10,039
======= ======= ======== ======= ======= ========
</TABLE>
F-17
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
---------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
------------------------------- ENTITY OTHER REGIONS
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- --------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $68,776 $59,815 $128,591 $76,246 $13,594 $218,431
Cost of sales........... 20,539 13,736 34,275 19,698 337 54,310
------- ------- -------- ------- ------- --------
Gross profit........... 48,237 46,079 94,316 56,548 13,257 164,121
Selling, general and
administrative
expenses............... 49,263 45,355 94,618 44,299 15,107 154,024
------- ------- -------- ------- ------- --------
Income (loss) from
operations............ (1,026) 724 (302) 12,249 (1,850) 10,097
Other (income) expense.. 1,368 147 1,515 (28,562)(3) (1,773) (28,820)(3)
------- ------- -------- ------- ------- --------
Income (loss) before
income taxes
(benefit)............. (2,394) 577 (1,817) 40,811 (77) 38,917
Income taxes (benefit).. (1,956) 1,584 (372) 5,509 958 6,095
------- ------- -------- ------- ------- --------
Net income (loss)...... $ (438) $(1,007) $ (1,445) $35,302 $(1,035) $ 32,822
======= ======= ======== ======= ======= ========
</TABLE>
Combining condensed balance sheet data as of December 31, 1997 and 1996 is
summarized as follows (in thousands):
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1997
-------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
------------------------------- ENTITY OTHER
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA REGIONS AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS(5) COMBINED
--------- ------------ -------- ---------------- --------------- --------
<S> <C> <C> <C> <C> <C> <C>
Receivables............. $ 4,090 $ 6,225 $10,315 $14,323 $2,660 $ 27,298
Inventories............. 17,452 8,635 26,087 10,329 1,612 38,028
Due from parent company. 14,192 17,457 31,649 14,270 (6,034) 39,885
Other current assets.... 2,057 2,445 4,502 8,310 616 13,428
------- ------- ------- ------- ------ --------
Total current assets... 37,791 34,762 72,553 47,232 (1,146) 118,639
Property, plant and
equipment.............. 17,369 1,497 18,866 23,980 836 43,682
Other assets........... 350 1,018 1,368 11,820 (259) 12,929
------- ------- ------- ------- ------ --------
Total assets............ $55,510 $37,277 $92,787 $83,032 $ (569) $175,250
======= ======= ======= ======= ====== ========
Accounts payable and
accrued expenses....... $11,011 $ 6,471 $17,482 $15,461 $2,441 $ 35,384
Due to parent........... 14,621 21,418 36,039 13,347 (3,946) 45,440
Other current
liabilities............ 2,364 10,625 12,989 2,852 (639) 15,202
------- ------- ------- ------- ------ --------
Total current
liabilities........... 27,996 38,514 66,510 31,660 (2,144) 96,026
Other liabilities....... -- 1,900 1,900 -- 20 1,920
------- ------- ------- ------- ------ --------
Total liabilities...... 27,996 40,414 68,410 31,660 (2,124) 97,946
Divisional equity....... 27,514 (3,137) 24,377 51,372 1,555 77,304
------- ------- ------- ------- ------ --------
Total liabilities and
equity................ $55,510 $37,277 $92,787 $83,032 $ (569) $175,250
======= ======= ======= ======= ====== ========
</TABLE>
F-18
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1996
------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC.(1) GUARANTOR
------------------------------- ENTITY OTHER
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA REGIONS AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V.(2) ELIMINATIONS(5) COMBINED
--------- ------------ -------- --------------- --------------- --------
<S> <C> <C> <C> <C> <C> <C>
Receivables............. $ 4,136 $ 7,780 $11,916 $11,823 $2,532 $ 26,271
Inventories............. 16,536 8,891 25,427 13,332 6,382 45,141
Due from parent company. 12,259 6,531 18,790 12,096 (6,470) 24,416
Other current assets.... 1,431 3,364 4,795 9,669 (2,448) 12,016
------- ------- ------- ------- ------ --------
Total current assets... 34,362 26,566 60,928 46,920 (4) 107,844
Property, plant and
equipment.............. 17,267 1,672 18,939 21,839 1,017 41,795
Other assets............ 856 1,108 1,964 14,084 (1,226) 14,822
------- ------- ------- ------- ------ --------
Total assets........... $52,485 $29,346 $81,831 $82,843 $ (213) $164,461
======= ======= ======= ======= ====== ========
Accounts payable and
accrued expenses....... $ 9,540 $ 8,252 $17,792 $19,008 $2,266 $ 39,066
Due to parent........... 18,416 15,918 34,334 7,622 (910) 41,046
Other current
liabilities............ 50 2,023 2,073 5,421 (4,187) 3,307
------- ------- ------- ------- ------ --------
Total current
liabilities........... 28,006 26,193 54,199 32,051 (2,831) 83,419
Other liabilities....... -- 2,381 2,381 -- 20 2,401
------- ------- ------- ------- ------ --------
Total liabilities...... 28,006 28,574 56,580 32,051 (2,811) 85,820
Divisional equity....... 24,479 772 25,251 50,792 2,598 78,641
------- ------- ------- ------- ------ --------
Total liabilities and
equity................ $52,485 $29,346 $81,831 $82,843 $ (213) $164,461
======= ======= ======= ======= ====== ========
</TABLE>
Combining condensed statement of cash flows data for the years ended December
31, 1997, 1996 and 1995 is summarized as follows (in thousands):
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
----------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
-------------------------------- ENTITY OTHER
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA REGIONS AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- ---------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in) operating
activities............. $ 13,467 $(4,031) $ 9,436 $ 11,534 $ 5,747 $ 26,717
Net cash provided by
(used in) investing
activities............. (2,130) (437) (2,567) 4,162 (7,395) (5,800)
Net cash provided by
(used in) financing
activities............. (11,228) 4,347 (6,881) (13,220) 1,110 (18,991)
Effect of exchange rate
changes on cash........ 158 (587) (429) (200) 272 (357)
Cash at beginning of
period................. 492 2,021 2,513 5,182 967 8,662
-------- ------- ------- -------- -------- --------
Cash at end of period... $ 759 $ 1,313 $ 2,072 $ 7,458 $ 701 $ 10,231
======== ======= ======= ======== ======== ========
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
----------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
-------------------------------- ENTITY OTHER
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA REGIONS AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- ---------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in) operating
activities............. $ 5,286 $(4,107) $ 1,179 $ 9,174 $ (4,945) $ 5,408
Net cash provided by
(used in) investing
activities............. (3,787) (309) (4,096) 24,133 (24,545) (4,508)
Net cash used in
financing activities... (1,007) 2,246 1,239 (30,000) 31,156 2,395
Effect of exchange rate
changes on cash........ -- (488) (488) (90) (1,585) (2,163)
Cash at beginning of
period................. -- 4,679 4,679 1,965 886 7,530
-------- ------- ------- -------- -------- --------
Cash at end of period... $ 492 $ 2,021 $ 2,513 $ 5,182 $ 967 $ 8,662
======== ======= ======= ======== ======== ========
</TABLE>
F-19
<PAGE>
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
---------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL,
INC. (1) GUARANTOR
------------------------------- ENTITY OTHER
GUARANTOR NONGUARANTOR TOTAL GRUPO JAFRA REGIONS AND TOTAL
ENTITY ENTITIES COMBINED S.A. DE C.V. (2) ELIMINATIONS (5) COMBINED
--------- ------------ -------- ---------------- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in) operating
activities............. $(3,689) $ 4,846 $ 1,157 $ 32,529 $ (6,219) $ 27,467
Net cash provided by
(used in) investing
activities............. (3,647) (863) (4,510) (30,514) 21,133 (13,891)
Net cash provided by
(used in) financing
activities............. 6,832 (2,927) 3,905 (76) (17,208) (13,379)
Effect of exchange rate
changes on cash........ 6 356 362 (32) 564 894
Cash at beginning of pe-
riod................... 498 3,267 3,765 58 2,616 6,439
------- ------- ------- -------- -------- --------
Cash at end of period... $ -- $ 4,679 $ 4,679 $ 1,965 $ 886 $ 7,530
======= ======= ======= ======== ======== ========
</TABLE>
- --------
(1) The combined financial statements of Jafra Cosmetics International, Inc.
include the accounts of the following subsidiaries of the Gillette
Company: Jafra Cosmetics International, Inc., a California corporation
(the Guarantor entity); Jafra Cosmetics GmbH, a German company; Jafra
Cosmetic International B.V., a Netherlands company; Jafra Cosmetics
S.p.A., an Italian company; Jafra Cosmetics A.G., a Swiss company; the
Jafra related operations of a Gillette affiliate in Austria; and the
assets related to the Jafra intellectual properties, held by the Gillette
Company, that are used in the Jafra business (collectively, the
Nonguarantor entities).
(2) The combined financial statements of Grupo Jafra, S.A. de C.V. include the
accounts of Grupo Jafra, S.A. de C.V., a guarantor entity, and all of its
subsidiaries together with certain operating assets and the related
operating profit of Gillette Braun used in the Jafra business in Mexico
and the assets related to the Jafra intellectual properties held by the
Gillette Company.
(3) Includes foreign currency gains of $25,501.
(4) During 1997, Jafra Cosmetics International, Inc., the Guarantor entity,
wrote off approximately $3,200,000 of payables due from its affiliate in
Canada (Other), as a result of the decision to close the market in Canada.
The division in Canada recorded this as a credit to earnings, accordingly,
these transactions offset in combination. The effects of these
transactions in the above table, however, have been eliminated from the
above presentation to reflect the income from operations exclusive of this
transaction.
(5) Includes the activity of certain Divested Markets and smaller markets in
Austria, Argentina, Colombia and Venezuela. Also includes eliminations of
certain intercompany transactions within the combined company.
(13) YEAR 2000
The Company has developed plans to address the possible exposures related to
the impact on its computer systems of the year 2000. Key financial,
information and operational systems have been assessed and detailed plans have
been developed to address systems modifications required by December 31, 1999.
The financial impact of making the required systems changes is not expected to
be material to the Company's combined financial position, results of
operations or cash flows.
F-20
<PAGE>
INDEPENDENT AUDITORS' REPORT
CDRJ Investments (Lux) S.A.
We have audited the accompanying combined balance sheet of CDRJ Investments
(Lux) S.A. as of April 28, 1998. This combined balance sheet is the
responsibility of CDRJ Investments (Lux) S.A.'s management. Our responsibility
is to express an opinion on the combined balance sheet based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the combined balance sheet is free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the combined balance sheet.
An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall
presentation of the combined balance sheet. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, such combined balance sheet presents fairly, in all material
respects, the combined financial position of CDRJ Investments (Lux) S.A. as of
April 28, 1998 in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
New York, New York
August 25, 1998
F-21
<PAGE>
CDRJ INVESTMENTS (LUX) S.A.
COMBINED BALANCE SHEET
APRIL 28, 1998
ASSETS
<TABLE>
<S> <C>
Cash.................................................................. $243,798
========
STOCKHOLDER'S EQUITY
Common Stock, par value $2.00 per share; 20,000 shares authorized;
20,000
shares issued and outstanding........................................ 40,000
Additional paid-in-capital............................................ 203,798
--------
Total stockholder's equity.......................................... $243,798
========
</TABLE>
See accompanying notes to combined balance sheet.
F-22
<PAGE>
CDRJ INVESTMENTS (LUX) S.A.
NOTES TO COMBINED BALANCE SHEET
APRIL 28, 1998
1. ORGANIZATION
CDRJ Investments (Lux) S.A., a Luxembourg company (the "Parent"), its
indirect wholly owned subsidiary, CDRJ Acquisition Corporation, a Delaware
corporation (the "U.S. Issuer"), a related company, Jafra Cosmetics
International, S.A. de C.V., a Mexican corporation ("Jafra S.A." together with
the U.S. Issuer, the "Issuers") and certain other related companies were
formed on behalf of Clayton, Dubilier & Rice Fund V Limited Partnership ("Fund
V"), a Cayman Islands exempted limited partnership, managed by Clayton,
Dubilier & Rice, Inc. ("CD&R"), and other investors to acquire (the
"Acquisition") the worldwide Jafra cosmetics business (the "Jafra Business")
from The Gillette Company ("Gillette").
2. PRINCIPLES OF COMBINATION
The combined financial statements include the accounts of the Parent, its
subsidiaries and other related companies which were formed by Fund V in
connection with the Acquisition after the elimination of all intercompany
account and transactions.
3. SUPPLEMENTAL INFORMATION
The consolidating balance sheet data, as of April 28, 1998, has been
aggregated by the Guarantor entities of the Notes (See Note 5), the U.S.
Issuer and Jafra S.A. and the Nonguarantor entities. The Nonguarantor entities
are the Parent's indirect European subsidiaries in Germany, the Netherlands,
Switzerland, Italy and Austria and its indirect South American subsidiaries in
Colombia, Argentina and Venezuela.
<TABLE>
<CAPTION>
AS OF APRIL 28, 1998
----------------------------------------------------------------------------------
CDRJ ACQUISITION CORP. GUARANTOR
----------------------------- JAFRA GUARANTOR NONGUARANTOR
GUARANTOR NONGUARANTOR COSMETICS CDRJ SUBSIDIARIES
PARENT EUROPEAN INTERNATIONAL, INVESTMENTS AND TOTAL
ONLY SUBSIDIARIES TOTAL S.A. DE C.V. (LUX) S.A. ELIMINATIONS CONSOLIDATED
--------- ------------ ------ -------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash.................... 1,000 69,933 70,933 -- -- 172,865 243,798
Liabilities............. -- -- -- -- -- -- --
Stockholder's Equity.... 1,000 69,933 70,933 -- -- 172,865 243,798
</TABLE>
4. STOCKHOLDERS' EQUITY
Additional paid-in capital has been reduced by a $25,000 receivable from
Fund V resulting from the initial capitalization of the Parent. The
shareholders purchased 20,000 shares for $40,000 of which $15,000 was paid and
$25,000 is receivable from the shareholders. In addition, the shareholder
contributed $178,798, which has been included in additional paid in capital.
5. SUBSEQUENT EVENT--FINANCING
On April 30, 1998, the U.S. Issuer and Jafra S.A. borrowed $140.0 million by
issuing $100 million aggregate principal amount of 11 3/4% Subordinated Notes
due 2008 (the "Notes") pursuant to an Indenture dated April 30, 1998 (the
"Indenture") and $40 million under a Senior Credit Agreement.
The Notes represent the several obligation of the U.S. Issuer and Jafra S.A.
in the amount of $60 million and $40 million, respectively, with each
participating on a pro rata basis upon redemption. The Notes mature in 2008
and bear a fixed interest rate of 11.75% payable semi-annually.
F-23
<PAGE>
Each Issuer has guaranteed the obligations under the Notes of the other on a
senior subordinated basis, subject to a 30-day standstill period prior to
enforcement of such guarantees. In addition, Parent has fully and
unconditionally guaranteed the Notes on a senior subordinated basis. The U.S.
Issuer currently has no U.S. subsidiaries. Each acquired or organized U.S.
subsidiary of the U.S. Issuer will fully and unconditionally guarantee the
Notes jointly and severally, on a senior subordinated basis. Each existing
subsidiary of Jafra S.A. fully and unconditionally guarantees the Notes
jointly and severally, on a senior subordinated basis, and each subsequently
acquired or organized subsidiary of Jafra S.A. will fully and unconditionally
guarantee the Notes jointly and severally, on a senior subordinated basis. The
nonguarantor entities are the Parent's indirect European subsidiaries in
Germany, Netherlands, Switzerland, Italy and Austria and its indirect South
American subsidiaries in Colombia, Argentina and Venezuela.
The Notes are unsecured and are generally non-callable for five years.
Thereafter, the Notes will be callable at premiums declining to par in the
eighth year. Prior to May 1, 2001, the issuers at their option may
concurrently redeem the Notes on a pro rata basis in an aggregate principal
amount equal to up to 35% of the original aggregate principal amount of the
Notes not exceeding the aggregate cash proceeds of one or more equity
offerings, at a redemption price of 111.75% plus accrued interest. The Notes
are required to be registered in a registered exchange offer under the
Securities Act of 1933. Failure to exchange the existing Notes for Notes
registered under the Securities Act of 1933 within approximately 270 days from
the effective date of the Acquisition will cause an increase of up to 0.5% in
the interest rate required to be paid by the Issuers.
In addition, the Issuers entered into a Senior Credit Agreement that
provides for senior secured credit facilities in an aggregate principal amount
of $90 million, consisting of a multicurrency revolving credit facility of $65
million (the "Revolving Credit Facility") and a term loan facility of $25
million (the "Term Loan Facility"). Borrowings under the Term Loan Facility
are payable in quarterly installments of principal and interest over 6 years.
Borrowings under the Revolving Credit Facility mature on April 30, 2004.
Borrowings under the Senior Credit Agreement bear interest at an annual rate
of LIBOR plus a margin not to exceed 2.625% or an alternate base rate (the
higher of the prime rate and the federal funds rate plus 1%, plus an
applicable margin not to exceed 1.625%). The interest rate at April 30, 1998
was 8.34% per annum.
Both the Indenture and the Senior Credit Agreement contain certain covenants
which limit the Issuers' ability to incur additional indebtedness, pay cash
dividends and make certain other payments and require the Issuers to maintain
certain financial ratios including a minimum EBITDA to cash interest expense
coverage ratio and a maximum debt to EBITDA ratio.
6. SUBSEQUENT EVENT--ACQUISITION (UNAUDITED)
On April 30, 1998, the Parent acquired the Jafra Business, pursuant to which
(i) Jafra Cosmetics International, Inc. a California corporation, merged with
the U.S. Issuer, with the U.S. Issuer as the surviving entity and assuming the
name Jafra Cosmetics International, Inc. (ii) Jafra S.A. acquired all of the
outstanding capital stock of Grupo Jafra, S.A. de C.V. which was then merged
with and into Jafra S.A. (iii) indirect subsidiaries of the Parent purchased
the stock of Gillette subsidiaries conducting the Jafra Business in Germany,
Italy, the Netherlands and Switzerland; and (iv) indirect subsidiaries of the
Parent acquired from various Gillette subsidiaries certain assets used in the
Jafra Business in Austria, Argentina, Colombia and Venezuela. The Acquisition
will be accounted for as a purchase business combination. The total purchase
cost of $206.3 million (including approximately $6.3 million of transaction
expenses) was funded by the issuance of the Parent's common stock for $78.9
million (certain members of management and Fund V have committed to invest an
additional $1.1 million by September 22, 1998), the issuance of $100.0 million
of Notes and borrowings of approximately $40.0 million under a Senior Credit
Agreement.
F-24
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
JUNE 30, 1998 (UNAUDITED)
(IN THOUSANDS EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents.......................................... $ 18,371
Receivables, less allowance for doubtful accounts of $2,013........ 18,962
Inventories (Note 3)............................................... 38,637
Prepaid taxes...................................................... 6,865
Prepaid expenses and other current assets.......................... 5,841
--------
Total current assets............................................. 88,676
Property, plant and equipment, net (Note 4).......................... 56,179
Other assets:
Goodwill, net (Note 5)............................................. 62,452
Trademarks, net (Note 5)........................................... 53,576
Deferred financing fees and other (Notes 2 and 8).................. 16,404
--------
Total............................................................ $277,287
========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities (Note 6).................. $ 48,953
Income taxes payable (Note 7)...................................... 5,418
--------
Total current liabilities........................................ 54,371
Long-term debt (Note 8):
Revolving credit facility.......................................... 15,000
Term loan facility................................................. 25,000
Senior subordinated notes.......................................... 100,000
--------
Total long-term debt............................................. 140,000
Deferred income taxes.............................................. 3,407
Other long-term liabilities........................................ 1,316
--------
Total liabilities................................................ 199,094
--------
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, par value $2.00; authorized, 1,020,000 shares; issued
and outstanding, 789,503 shares..................................... 1,579
Additional paid-in capital......................................... 77,371
Accumulated deficit................................................ (581)
Cumulative foreign currency translation............................ (176)
--------
Total stockholders' equity....................................... 78,193
--------
Total............................................................ $277,287
========
</TABLE>
See accompanying notes to consolidated financial statements.
F-25
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (IN THOUSANDS)
<TABLE>
<CAPTION>
PREDECESSOR
----------------------
TWO MONTHS FOUR MONTHS
ENDED ENDED SIX MONTHS
JUNE 30, APRIL 30, ENDED JUNE
1998 1998 30, 1997
---------- ----------- ----------
<S> <C> <C> <C>
Net sales................. $41,008 $77,282 $110,166
Cost of sales............. 11,792 20,322 28,148
------- ------- --------
Gross profit.............. 29,216 56,960 82,018
Selling, general and
administrative expenses.. 25,593 51,519 73,587
------- ------- --------
Income from operations.... 3,623 5,441 8,431
Other (expense) income:
Exchange gain (loss).... (1,297) 1,376 99
Interest, net (Note 8).. (2,707) 78 80
Other, net.............. 157 104 1
------- ------- --------
Income (loss) before
income taxes............. (224) 6,999 8,611
Provision for income taxes
(Note 7)................. 357 2,899 2,070
------- ------- --------
Net income (loss)......... $ (581) $ 4,100 $ 6,541
======= ======= ========
</TABLE>
See accompanying notes to consolidated financial statements
F-26
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (IN THOUSANDS)
<TABLE>
<CAPTION>
PREDECESSOR
------------------
TWO FOUR SIX
MONTHS MONTHS MONTHS
ENDED ENDED ENDED
JUNE 30, APRIL 30, JUNE 30,
1998 1998 1997
-------- --------- --------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss)................................ $ (581) $ 4,100 $ 6,541
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization.................. 1,283 1,363 1,404
Deferred income taxes.......................... (1,113) 3,211 2,784
Change in assets and liabilities:
(Increase) decrease in:
Receivables.................................. 1,392 (2,063) (8,831)
Inventories.................................. 766 (512) 4,628
Prepaid expenses and other current assets.... (6,139) (7,457) (4,800)
Other assets................................. (1,326) 3,948 1,109
Increase (decrease) in:
Accounts payable and accrued liabilities..... 8,526 (7,144) 3,287
Income taxes payable......................... 5,419 (3,083) (682)
Other long-term liabilities.................. (37) (408) (287)
-------- ------- -------
Net cash provided by (used in) operating
activities................................ 8,190 (8,045) 5,153
Cash flows from investing activities:
Purchase of Jafra Business, net of cash received
of $2,339....................................... (184,732)
Withholding taxes on purchase price.............. (12,929)
Purchases of marketable securities............... (97)
Proceeds from sale of property and equipment..... 5,900 299
Purchases of property and equipment.............. (464) (3,213) (3,712)
-------- ------- -------
Net cash provided by (used in) investing
activities................................ (198,125) 2,590 (3,413)
Cash flows from financing activities:
Dividends paid to Gillette....................... (20,990) (3,270)
Capital contributions by Gillette................ 31,735 500
Transactions with Gillette and other divisions... (19,524) 5,307
Proceeds from issuance of subordinated debt...... 100,000
Proceeds from revolving credit facility.......... 15,000
Proceeds from term loan.......................... 25,000
Contribution of equity........................... 78,722
Acquisition and financing fees................... (10,468)
-------- ------- -------
Net cash provided by (used in) financing
activities................................ 208,254 (8,779) 2,537
Effect of exchange rate changes on cash............ (176) (333) (1,389)
Effect of accounting calendar change on cash (Note
1)................................................ 6,276
-------- ------- -------
Net (increase) decrease in cash and cash
equivalents....................................... 18,143 (8,291) 2,888
Cash and cash equivalents at beginning of period... 228 10,231 8,662
-------- ------- -------
Cash and cash equivalents at end of period......... $ 18,371 $ 1,940 $11,550
======== ======= =======
Supplemental disclosure of cash flow information...
Cash paid during the year for:
Interest....................................... $ 97 $ 501 $ 541
Taxes.......................................... 4,135 1,154
</TABLE>
See accompanying notes to consolidated financial statements.
F-27
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
CDRJ Investments (Lux) S.A., a Luxembourg societe anonyme (the "Parent"),
CDRJ Acquisition Corporation (to be renamed Jafra Cosmetics International,
Inc.), a Delaware corporation ("JCI"), Jafra Cosmetics International, S.A. de
C.V. a sociedad anonima de capital variable organized under the laws of the
United Mexican States ("Jafra S.A.") and certain other subsidiaries of the
Parent were organized by Clayton, Dubilier & Rice Fund V Limited Partnership,
a Cayman Islands exempted limited partnership managed by Clayton, Dubilier &
Rice, Inc. ("CD&R") to acquire (the "Acquisition") the worldwide Jafra
Cosmetics business (the "Jafra Business") of The Gillette Company
("Gillette"). JCI and Jafra S.A. are indirect, wholly owned subsidiaries of
the Parent. The Parent and its subsidiaries are collectively referred to as
the "Company". On April 30, 1998 pursuant to an acquisition agreement (the
"Acquisition Agreement") between the Parent, certain of its subsidiaries and
Gillette, (i) Jafra Cosmetics International Inc., a California corporation
merged with JCI, with JCI as the surviving entity, (ii) Jafra S.A. acquired
the stock of Grupo Jafra, S.A. de C.V., a Mexican Company ("Grupo Jafra"),
which merged with and into Jafra S.A. following the consummation of the
acquisition, with Jafra S.A. as the surviving entity, (iii) indirect
subsidiaries of the Parent purchased the stock of Gillette subsidiaries
conducting the Jafra Business in Germany, Italy, the Netherlands and
Switzerland; and (iv) indirect subsidiaries of the Parent acquired from
various Gillette subsidiaries certain assets used in the Jafra Business in
Austria, Argentina, Colombia and Venezuela. The Predecessor's financial
statements include the divested operations principally in Portugal, Spain,
Brazil and the United Kingdom; however, Parent did not acquire these divested
operations as part of the Jafra Business.
The purchase price for the Jafra Business of approximately $206.3 million
includes $200 million in cash, and an estimated $6.3 million of direct costs.
The $200 million cash purchase price includes $2.4 million of cash received,
$12.9 million of accrued withholding taxes to be paid by the Company on behalf
of Gillette subsequent to the closing date of the Acquisition and the
remaining $184.7 million paid directly to Gillette in cash. The Acquisition
has been accounted for under the purchase method of accounting. Accordingly,
the purchase price has been allocated to the assets and liabilities acquired
based upon estimates of their respective fair values at the date of
acquisition based on valuations and other studies that have not yet been
finalized. A preliminary allocation of the purchase price has been made to
major categories of assets and liabilities based on Company estimates. The
actual allocation of purchase cost and the resulting effect on income from
operations may differ significantly from the preliminary amounts included
herein. Although the final allocation has not yet been determined, the
following sets forth certain preliminary allocations (amounts in thousands):
<TABLE>
<S> <C>
Net tangible assets acquired............................................ $ 75,590
Allocation of excess purchase price:
Property, plant and equipment......................................... 18,420
Deferred income tax liability......................................... (647)
Accrual of restructuring/rationalization costs........................ (4,000)
Other assets.......................................................... 423
Trademarks............................................................ 53,800
Goodwill.............................................................. 62,714
--------
Total............................................................... $206,300
========
</TABLE>
Pursuant to the Acquisition Agreement, the purchase price paid by the Parent
for the Jafra Business is to be adjusted by the difference, if any, between
the adjusted net book value (as defined) of the Jafra Business as of the
closing date, and the adjusted net book value as of September 30, 1997. On
June 22, 1998, Gillette sent to the Parent a notice requesting an additional
payment of approximately $6.9 million (net of a receivable from Gillette of
$5.0 million). On July 10, 1998, the Parent delivered a notice disputing
certain items, and requested
F-28
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
payment of $5.0 million from Gillette. Under the terms of the Acquisition
Agreement, the parties are required to submit their dispute over the purchase
price adjustment to arbitration if such dispute cannot be resolved. The Parent
and Gillette are continuing to discuss the resolution of this matter. Although
management cannot predict the outcome of the purchase price adjustment dispute
at this time, management does not believe that the resolution of such dispute
will have a material adverse effect on the Company's business, financial
condition or results of operations. Accordingly, the impact of the dispute has
not been reflected in the estimate of the cost of the Acquisition. The amount
of the additional payment, if any, to Gillette will be allocated as an
increase to goodwill.
In conjunction with the Acquisition, the Company recorded a $4 million
accrual for restructuring and rationalization costs. Management is currently
planning the closure of certain distribution facilities and related
termination of certain employees. No amounts were charged against this accrual
through June 30, 1998 and the amount of the accrual has not been adjusted
subsequent to the closing date of the Acquisition.
The accompanying consolidated financial statements as of and for the two
months ended June 30, 1998 reflect the operations of the Parent and its
subsidiaries. The accompanying combined financial statements for the four
months ended April 30, 1998 and the six months ended June 30, 1997, reflect
the operations of the Jafra Business prior to the Acquisition and are referred
to as the "Predecessor" operations. Because of the debt financing incurred in
connection with the Acquisition, the exclusion of certain assets and
liabilities not acquired and the adjustments made to allocate the excess of
the aggregate purchase price over the historical value of the net assets
acquired, the accompanying financial statements of the Parent and its
subsidiaries are not directly comparable to those of the Predecessor.
The accompanying financial statements for the six months ended June 30, 1997
include the operating results of the Predecessor's foreign subsidiaries for
the six months ended May 31, 1997. Beginning January 1, 1998, the reporting
period for the foreign operations was changed from a fiscal year ending
November 30 to a calendar year ending December 31. The results of operations
for the period December 1, 1997 through December 31, were as follows (in
thousands):
<TABLE>
<S> <C>
Net sales......................................................... $ 9,619
Gross profit...................................................... 7,201
Loss from operations.............................................. 727
Income taxes...................................................... 470
Net loss.......................................................... 1,197
</TABLE>
The following unaudited pro forma information gives effect to certain
adjustments including depreciation expense, elimination of a non-recurring
charge to cost of goods sold, amortization of goodwill, trademarks and
deferred financing costs, CD&R management fees, executive compensation,
insurance expense, interest expense on acquisition debt, and the related
income tax effect of the foregoing adjustments as if the transaction had
occurred at the beginning of the periods presented (in thousands).
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
1998 1997
---------- ----------
<S> <C> <C>
Net sales........................................... $118,290 $110,166
Net loss............................................ $ (781) $ (1,909)
</TABLE>
F-29
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
The pro forma information presented above does not purport to represent what
the Company's actual results of operations would have been had the transaction
occurred as of the beginning of the periods presented and is not intended to
be a projection of future results or trends.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERIM FINANCIAL STATEMENTS--The interim consolidated financial data for
the two months ended June 30, 1998, the four months ended April 30, 1998, and
the six months ended June 30, 1997 is unaudited. This information reflects all
adjustments, consisting of normal recurring adjustments, that in the opinion
of management, are necessary to present fairly the financial position and
results of operations of the Company for the periods indicated. Results of
operations for the interim periods are not necessarily indicative of the
results of operations for the full year. The interim financial statement
should be read in conjunction with the audited financial statements presented
for the years ended December 31, 1997, 1996, and 1995.
DEFERRED FINANCING COSTS--In connection with the acquisition of the Jafra
Business, the Company incurred approximately $13.7 million of fees and
expenses related to the Senior Subordinated Notes Offering, the Revolving
Credit Facility and the Term Loan Facility (see Note 8). Such costs are being
amortized on a basis that approximates the interest method over the expected
terms of the debt.
NEW ACCOUNTING STANDARDS--In June 1997, the Financial Accounting Standards
Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No.
131, "Disclosure about Segments of an Enterprise and Related Information." The
Company is required to adopt this statement as of December 31, 1998. SFAS No.
131 requires disclosure of certain information regarding operating segments,
products and services, geographic areas of operations and major customers. The
Company has not analyzed the impact of adopting this statement.
In February 1998, the FASB issued SFAS No. 132, "Employers Disclosures about
Pensions and Other Post Retirement Benefits." SFAS No. 132 requires disclosure
of certain information regarding pensions and other post retirement benefits.
The effect of adopting this statement will not be material to the Company's
consolidated financial statements.
In March 1998, the AICPA's Accounting Standards Executive Committee
("AcSEC") issued Statement of Position ("SOP") 98-1, "Accounting for the Costs
of Computer Software Developed for Internal Use." SOP 98-1 provides guidance
on the capitalization of software for internal use. Effective as of January 1,
1998, the Company adopted the SOP, which had no material impact on the
Company's financial statements.
In April 1998, AcSEC issued SOP 98-5, "Reporting on the Cost of Start-Up
Activities." SOP 98-5 requires that all the costs of start-up activities,
including organizational costs, be expensed as incurred. The Company adopted
SOP 98-5 effective as of May 1, 1998. The effects of adopting this SOP was not
material to the Company's financial statements.
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This statement will be effective January
1, 2000. The Company has not yet analyzed the impact of adopting the
statement.
F-30
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income."
SFAS No. 130 establishes new standards for reporting and displaying
comprehensive income, its components and accumulated balances. A
reconciliation of net income as reported and comprehensive income for the
periods presented is as follows (amounts in thousands):
<TABLE>
<CAPTION>
PREDECESSOR
----------------------
TWO MONTHS FOUR MONTHS
ENDED ENDED SIX MONTHS
JUNE 30, APRIL 30, ENDED JUNE
1998 1998 30, 1997
---------- ----------- ----------
<S> <C> <C> <C>
Net income (loss) as reported ......... $ (581) $4,100 $ 6,541
Foreign currency translation adjust-
ment.................................. (176) (333) (1,389)
------ ------ -------
Comprehensive income (loss) ........... $ (757) $3,767 $ 5,152
====== ====== =======
</TABLE>
3. INVENTORIES
Inventories consist of the following at June 30, 1998 (amounts in
thousands):
<TABLE>
<S> <C>
Raw materials and supplies....................................... $ 9,418
Work in process.................................................. 16
Finished goods................................................... 29,203
-------
Total inventories................................................ $38,637
=======
</TABLE>
4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following at June 30, 1998
(amounts in thousands):
<TABLE>
<S> <C>
Land............................................................ $ 20,126
Buildings....................................................... 15,774
Machinery and equipment......................................... 21,078
--------
56,978
Less accumulated depreciation................................... 799
--------
Property, plant and equipment, net.............................. $ 56,179
========
</TABLE>
5. OTHER ASSETS
Amounts included in goodwill and trademarks result from the Company's
acquisition of the Jafra Business from Gillette. Such amounts are being
amortized over their estimated useful lives of 40 years. Accumulated
amortization of goodwill and trademarks at June 30, 1998 was $261,000 and
$223,000, respectively.
F-31
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consist of the following at June
30, 1998 (amounts in thousands):
<TABLE>
<S> <C>
Accounts payable................................................ $ 24,295
Advertising and sales promotion................................. 11,038
Accrued restructuring/rationalization costs..................... 4,000
Accrued Interest................................................ 2,443
Payroll and payroll taxes....................................... 1,828
State and local sales taxes..................................... 1,422
Miscellaneous................................................... 3,927
--------
$ 48,953
========
</TABLE>
The accrual for restructing/rationalization costs represents non-recurring
charges the Company estimates that it will incur prior to April 30, 1999 to
rationalize certain distribution and administrative functions.
7. INCOME TAXES
The actual income tax rate differs from the "expected" tax rate (computed by
applying the U.S. federal corporate rate of 35% to income before taxes) for
the two months ended June 30, 1998 principally as a result of valuation
allowances applied to losses of the JCI and certain foreign subsidiaries and
non-deductible goodwill in certain foreign subsidiaries (principally Mexico).
8. LONG TERM DEBT
On April 30, 1998, JCI and Jafra S.A. (collectively, the "Issuers") borrowed
$140.0 million by issuing $100 million aggregate principal amount of 11 3/4%
Subordinated Notes due 2008 (the "Notes") pursuant to an Indenture dated April
30, 1998 (the "Indenture") and $40 million under a Senior Credit Agreement.
The Notes represent the several obligation of JCI and Jafra S.A. in the
amount of $60 million and $40 million, respectively, with each participating
on a pro rata basis upon redemption. The Notes mature in 2008 and bear a fixed
interest rate of 11.75% payable semi-annually.
Each Issuer has guaranteed the obligations under the Notes of the other on a
senior subordinated basis, subject to a 30-day standstill period prior to
enforcement of such guarantees. In addition, Parent has fully and
unconditionally guaranteed the Notes on a senior subordinated basis. JCI
currently has no U.S. subsidiaries. Each acquired or organized U.S. subsidiary
of JCI will fully and unconditionally guarantee the Notes jointly and
severally, on a senior subordinated basis. Each existing subsidiary of Jafra
S.A. fully and unconditionally guarantees the Notes jointly and severally, on
a senior subordinated basis, and each subsequently acquired or organized
subsidiary of Jafra S.A. will fully and unconditionally guarantee the Notes
jointly and severally, on a senior subordinated basis. The nonguarantor
entities are the Parent's indirect European subsidiaries in Germany,
Netherlands, Switzerland, Italy and Austria and its indirect South American
subsidiaries in Columbia, Argentina and Venezuela.
The Notes are unsecured and are generally non-callable for five years.
Thereafter, the Notes will be callable at premiums declining to par in the
eighth year. Prior to May 1, 2001, the Issuers at their option may
concurrently redeem the Notes on a pro rata basis in an aggregate principal
amount equal to up to 35% of the original
F-32
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
aggregate principal amount of the Notes not exceeding the aggregate cash
proceeds of one or more equity offerings, at a redemption price of 111.75%
plus accrued interest. The Notes are required to be registered in a registered
exchange offer under the Securities Act of 1933. Failure to exchange the
existing Notes for Notes registered under the Securities Act of 1933 within
approximately 270 days from the effective date of the Acquisition will cause
an increase of up to 0.5% in the interest rate required to be paid by the
Issuers.
In addition, the Issuers entered into a Senior Credit Agreement that
provides for senior secured credit facilities in an aggregate principal amount
of $90 million, consisting of a multicurrency revolving credit facility of $65
million (the "Revolving Credit Facility") and a term loan facility of $25
million (the "Term Loan Facility"). Borrowings under the Term Loan Facility
are payable in quarterly installments of principal and interest over 6 years.
Borrowings under the Revolving Credit Facility mature on April 30, 2004.
Borrowings under the Senior Credit Agreement bear interest at an annual rate
of LIBOR plus a margin not to exceed 2.625% or an alternate base rate (the
higher of the prime rate and the federal funds rate plus 1%, plus an
applicable margin not to exceed 1.625%). The interest rate at April 30, 1998
was 8.34% per annum.
Both the Indenture and the Senior Credit Agreement contain certain covenants
which limit the Issuer's ability to incur additional indebtedness, pay cash
dividends and make certain other payments and require the Issuers to maintain
certain financial ratios including a minimum EBITDA to cash interest expense
coverage ratio and a maximum debt to EBITDA ratio.
9. COMMITMENTS AND CONTINGENCIES
The Company is involved form time to time in routine legal matters
incidental to its business. The Company believes that the resolution of such
matters will not have a material adverse effect on the Company's business,
financial condition or results of operation.
10. MANAGEMENT INCENTIVE ARRANGEMENTS
The Company has adopted a stock incentive plan (the "Stock Incentive Plan"),
providing for the sale to members of senior management an aggregate of 52,734
shares of common stock of the Parent and the issuance of options to purchase
up to 105,468 additional shares of common stock. As of June 30, 1998, 19,903
shares have been sold subject to the Stock Incentive Plan. The purchase price
of such shares was $100 per share, which represents the fair market value of
each share based on the aggregate equity value of Parent upon consummation of
the Acquisition.
A portion of the cash purchase price of the shares acquired by members of
management was financed by loans from the Chase Manhattan Bank on market
terms. To help members of management obtain such terms for such financing, the
Company fully and unconditionally guaranteed up to 75% of the purchase price
for the shares of Parent common stock purchase by each such member of
management.
In connection with the purchase of common stock of the Parent, each senior
executive officer is expected to be granted options to purchase two additional
shares of common stock for each share purchased at not less than the fair
market value at the date of grant. Options covering one-half of the shares are
expected to vest in three equal installments on the first three anniversaries
of the date of grant, subject to the senior executive's continued employment.
The remaining options covering 50% of the shares vest on the ninth anniversary
of such senior executive officer's employment if such executive is employed on
such date. Such options may vest at an earlier date if the Company achieves
certain annual and/or cumulative EBITDA targets that are expected to be
specified in the agreements pursuant to which such options are granted.
F-33
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
In addition, certain senior executive officers have employment agreements
which provide for annual bonuses if the Company achieves the performance goals
established under its annual incentive plan for executives.
11. TRANSACTIONS WITH AFFILIATES
CD&R received a fee of $2.7 million, which was recorded as a direct
acquisition cost, for providing services related to the structuring,
implementation and consummation of the acquisition of the Jafra Business, in
addition to the reimbursement of out-of-pocket expenses. Pursuant to a
consulting agreement entered into following the acquisition, until the 10th
anniversary of the acquisition or the date on which CD&R Fund V no longer has
an investment in the Company, CD&R will receive an annual fee of $500,000 (and
reimbursement of out-of-pocket expenses) for providing advisory, management
consulting and monitoring services to the Company. In addition, certain
officers and directors of CD&R or its affiliates serve as directors of the
Company.
In April of 1998, the Company sold land in Mexico to Gillette with a book
value of approximately $6 million for $12 million. The excess of the sales
price over the book value of the land, net of taxes, was recorded as a
contribution of capital from Gillette to the Company. Prior to the Closing
Date of the Acquisition, intercompany accounts receivable and accounts payable
between Jafra entities and Gillette were forgiven, and as such were accounted
for as direct reductions from (additions to) equity, respectively.
12. SUPPLEMENTAL INFORMATION
The consolidating financial statement data, as of June 30, 1998, and for the
two months ended June 30, 1998 has been aggregated by the Guarantor entities,
JCI and Jafra S.A. and the Nonguarantor entities. Prior to the Acquisition,
JCI and Jafra S.A. were Jafra Cosmetics International, Inc., a California
corporation,
and Grupo Jafra, respectively, as defined below. The Nonguarantor entities are
the Parent's indirect European subsidiaries in Germany, Holland, Switzerland,
Italy and Austria and its indirect South American subsidiaries in Colombia,
Argentina and Venezuela.
The combined financial statements of the Predecessor for the four months
ended April 30, 1998, and the six months ended June 30, 1997 include the
accounts of the following subsidiaries of Gillette: Jafra Cosmetics
International, Inc., a California corporation (the Guarantor entity); Jafra
Cosmetics GmbH, a German company; Jafra Cosmetic International B.V., a
Netherlands company; Jafra Cosmetics S.p.A., an Italian company; Jafra
Cosmetics A.G., a Swiss company; the Jafra related operations of a Gillette
affiliate in Austria; and the assets related to the Jafra intellectual
properties, held by Gillette, that are used in the Jafra business
(collectively, the Nonguarantor entities). Additionally, the combined
financial statements of Grupo Jafra include the accounts of Grupo Jafra and
all of its subsidiaries together with certain operating assets and the related
operating profit of Gillette Braun used in the Jafra business in Mexico and
the assets related to the Jafra intellectual properties held by Gillette.
Prior to the Acquisition, Jafra's operations in Argentina, Venezuela and
Colombia were not separate subsidiaries of the Company, but rather divisions
of Gillette subsidiaries that also conducted operations unrelated to the Jafra
business. As such, for the four months ended April 30, 1998 and June 30, 1997,
the results of operations and cash flows of the Jafra business in these
countries are presented in the column denoted "Other Regions and
Eliminations."
F-34
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
TWO MONTHS ENDED JUNE 30, 1998
--------------------------------------------------------------------
GUARANTOR ENTITIES OTHER
---------------------------- NONGUARANTOR REGIONS AND TOTAL
JCI JAFRA S.A. TOTAL ENTITIES ELIMINATIONS CONSOLIDATED
------- ----------- ------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $12,962 $18,951 $31,913 $ 9,095 $ 41,008
Cost of sales........... 3,433 6,058 9,491 2,301 11,792
------- ------- ------- ------- ------ --------
Gross profit............ 9,529 12,893 22,422 6,794 -- 29,216
Selling, general and
administrative
expenses............... 8,990 8,641 17,631 7,962 25,593
------- ------- ------- ------- ------ --------
Income (loss) from
operations............. 539 4,252 4,791 (1,168) -- 3,623
Other (income) expense.. 1,017 3,287 4,304 (457) 3,847
------- ------- ------- ------- ------ --------
Income (loss) before
income taxes........... (478) 965 487 (711) -- (224)
Income taxes............ -- 357 357 -- 357
------- ------- ------- ------- ------ --------
Net income (loss)....... $ (478) $ 608 $ 130 $ (711) $ -- $ (581)
======= ======= ======= ======= ====== ========
<CAPTION>
FOUR MONTHS ENDED APRIL 30, 1998
--------------------------------------------------------------------
GUARANTOR ENTITIES OTHER
---------------------------- NONGUARANTOR REGIONS AND TOTAL
JCI GRUPO JAFRA TOTAL ENTITIES ELIMINATIONS COMBINED
------- ----------- ------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $23,611 $35,722 $59,333 $13,047 $4,902 $ 77,282
Cost of sales........... 6,415 9,984 16,399 2,962 961 20,322
------- ------- ------- ------- ------ --------
Gross profit............ 17,196 25,738 42,934 10,085 3,941 56,960
Selling, general and
administrative
expenses............... 16,783 20,201 36,984 10,743 3,792 51,519
------- ------- ------- ------- ------ --------
Income (loss) from
operations............. 413 5,537 5,950 (658) 149 5,441
Other (income) expense.. 864 (2,791) (1,927) 353 16 (1,558)
------- ------- ------- ------- ------ --------
Income (loss) before
income taxes........... (451) 8,328 7,877 (1,011) 133 6,999
Income taxes ........... 1 2,524 2,525 374 -- 2,899
------- ------- ------- ------- ------ --------
Net income (loss)....... $ (452) $ 5,804 $ 5,352 $(1,385) $ 133 $ 4,100
======= ======= ======= ======= ====== ========
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1997
--------------------------------------------------------------------
GUARANTOR ENTITIES OTHER
---------------------------- NONGUARANTOR REGIONS AND TOTAL
JCI GRUPO JAFRA TOTAL ENTITIES ELIMINATIONS COMBINED
------- ----------- ------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net sales............... $35,236 $44,934 $80,170 $23,853 $6,143 $110,166
Cost of sales........... 9,756 11,903 21,659 4,990 1,499 28,148
------- ------- ------- ------- ------ --------
Gross profit............ 25,480 33,031 58,511 18,863 4,644 82,018
Selling, general and
administrative
expenses............... 22,401 26,151 48,552 19,557 5,478 73,587
------- ------- ------- ------- ------ --------
Income (loss) from
operations............. 3,079 6,880 9,959 (694) (834) 8,431
Other (income) expense.. (387) 112 (275) 95 -- (180)
------- ------- ------- ------- ------ --------
Income (loss) before
income taxes........... 3,466 6,768 10,234 (789) (834) 8,611
Income taxes ........... 267 1,033 1,300 770 -- 2,070
------- ------- ------- ------- ------ --------
Net income (loss)....... $ 3,199 $ 5,735 $ 8,934 $(1,559) $ (834) $ 6,541
======= ======= ======= ======= ====== ========
</TABLE>
F-35
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
AS OF JUNE 30, 1998
----------------------------------------------------------------------
GUARANTOR ENTITIES
------------------------------ NONGUARANTOR TOTAL
JCI JAFRA S.A. TOTAL ENTITIES ELIMINATIONS CONSOLIDATED
-------- ---------- --------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Receivables............ $ 2,466 $ 10,876 $ 13,342 $ 5,620 $ -- $ 18,962
Inventories............ 16,428 13,642 30,070 8,567 -- 38,637
Other current assets... 23,912 15,403 39,315 34,349 (42,587) 31,077
-------- -------- --------- -------- --------- ---------
Total current assets... 42,806 39,921 82,727 48,536 (42,587) 88,676
Property, plant and
equipment.............. 25,650 27,143 52,793 3,386 56,179
Other assets:
Goodwill, net.......... 34,518 21,493 56,011 6,441 62,452
Trademarks............. 20,912 26,888 47,800 5,776 53,576
Other.................. 17,159 1,270 18,429 987 (3,012) 16,404
-------- -------- --------- -------- --------- ---------
Total.................. $141,045 $116,715 $ 257,760 $ 65,126 $ (45,599) $ 277,287
======== ======== ========= ======== ========= =========
<CAPTION>
AS OF JUNE 30, 1998
----------------------------------------------------------------------
GUARANTOR ENTITIES
------------------------------ NONGUARANTOR TOTAL
JCI JAFRA S.A. TOTAL ENTITIES ELIMINATIONS CONSOLIDATED
-------- ---------- --------- ------------ ------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C> <C> <C> <C> <C>
Current Liabilities:
Accounts payable and
accrued expenses...... $ 22,335 $ 19,434 $ 41,769 $ 7,960 $ (776) $ 48,953
Other current
liabilties............ 2,628 531 3,159 29,916 (27,657) 5,418
-------- -------- --------- -------- --------- ---------
Total current
liabilities........... 24,963 19,965 44,928 37,876 (28,433) 54,371
Total long term debt.... 80,000 60,000 140,000 12,500 (12,500) 140,000
Other liabilities....... -- -- -- 1,055 3,668 4,723
-------- -------- --------- -------- --------- ---------
Total liabilities....... 104,963 79,965 184,928 51,431 (37,265) 199,094
Stockholders' equity.... 36,082 36,750 72,832 13,695 (8,334) 78,193
-------- -------- --------- -------- --------- ---------
Total................... $141,045 $116,715 $ 257,760 $ 65,126 $ (45,599) $ 277,287
======== ======== ========= ======== ========= =========
<CAPTION>
TWO MONTHS ENDED JUNE 30, 1998
----------------------------------------------------------------------
GUARANTOR ENTITIES
------------------------------ NONGUARANTOR TOTAL
JCI JAFRA S.A. TOTAL ENTITIES ELIMINATIONS CONSOLIDATED
--- ---------- ----- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in)
Operating Activities... $ 246 $ 6,032 $ 6,278 $ 1,912 -- $ 8,190
Investing Activities... (83,832) (90,556) (174,388) (23,737) -- (198,125)
Financing Activities... 89,422 92,247 181,669 26,585 -- 208,254
Effect of Exchange rate
changes on cash........ -- -- -- (176) -- (176)
Cash at beginning of pe-
riod................... -- -- -- 228 -- 228
-------- -------- --------- -------- --------- ---------
Cash at end of period... $ 5,836 $ 7,723 $ 13,559 $ 4,812 -- $ 18,371
======== ======== ========= ======== ========= =========
</TABLE>
F-36
<PAGE>
CDRJ INVESTMENTS (LUX) S.A. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
FOUR MONTHS ENDED APRIL 30, 1998
---------------------------------------------------------------
OTHER
GUARANTOR ENTITIES REGIONS
--------------------------- NONGUARANTOR AND TOTAL
JCI GRUPO JAFRA TOTAL ENTITIES ELIMINATIONS COMBINED
--- ----------- ----- ------------ ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in)
Operating Activities... $1,361 $(7,425) $(6,064) $(7,860) $ 5,879 $(8,045)
Investing Activities... (528) 546 18 (242) 2,814 2,590
Financing Activities... (1,138) (6,232) (7,370) 7,276 (8,685) (8,779)
Effect of Exchange rate
changes on cash........ -- (181) (181) 364 (516) (333)
Effect of Accounting
Calendar change on
cash................... -- 6,358 6,358 (82) -- 6,276
Cash at beginning of pe-
riod................... 759 7,458 8,217 1,370 644 10,231
------ ------- ------- ------- ------- -------
Cash at end of period... $ 454 $ 524 $ 978 $ 826 $ 136 $ 1,940
====== ======= ======= ======= ======= =======
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1997
---------------------------------------------------------------
OTHER
GUARANTOR ENTITIES REGIONS
--------------------------- NONGUARANTOR AND TOTAL
JCI GRUPO JAFRA TOTAL ENTITIES ELIMINATIONS COMBINED
--- ----------- ----- ------------ ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Net cash provided by
(used in)
Operating Activities... $6,696 $ (37) $ 6,659 $(3,058) $ 1,552 $ 5,153
Investing Activities... (378) (3,083) (3,461) (15) 63 (3,413)
Financing Activities... (6,507) 10,635 4,128 24 (1,615) 2,537
Effect of Exchange rate
changes on cash........ -- (78) (78) (1,311) -- (1,389)
Cash at beginning of pe-
riod................... 841 2,101 2,942 5,182 538 8,662
------ ------- ------- ------- ------- -------
Cash at end of period... $ 652 $ 9,538 $10,190 $ 822 $ 538 $11,550
====== ======= ======= ======= ======= =======
</TABLE>
F-37
<PAGE>
- -------------------------------------------------------------------------------
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND THE
ACCOMPANYING LETTER OF TRANSMITTAL, AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. NEITHER
THIS PROSPECTUS OR THE ACCOMPANYING LETTER OF TRANSMITTAL, OR BOTH TOGETHER,
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY
SECURITIES OTHER THAN THE SECURITIES TO WHICH IT RELATES OR AN OFFER TO SELL
OR THE SOLICITATION OF AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY
SUCH SECURITIES IN ANY CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION IS
UNLAWFUL. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR THE ACCOMPANYING LETTER
OF TRANSMITTAL, OR BOTH TOGETHER, NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY
CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE
AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR THAT THE INFORMATION CONTAINED
HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
---------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Available Information..................................................... v
Prospectus Summary........................................................ 1
Risk Factors.............................................................. 16
Use of Proceeds........................................................... 26
Capitalization............................................................ 27
Unaudited Pro Forma Combined Statements of Operations .................... 28
Unaudited Pro Forma Combined Statement of Operations...................... 29
Selected Historical Combined Financial Data............................... 35
Management's Discussion And Analysis of Financial Condition And Results of
Operations............................................................... 37
Business.................................................................. 46
Management................................................................ 58
Ownership of Capital Stock................................................ 62
The Transactions.......................................................... 63
Certain Relationships and Related Transactions............................ 64
Description of the Senior Credit Agreement................................ 65
The Exchange Offer........................................................ 67
Registration Rights....................................................... 74
Description of Notes...................................................... 76
Taxation.................................................................. 119
Book-entry; Delivery and Form............................................. 125
Plan of Distribution...................................................... 128
Legal Matters............................................................. 128
Experts................................................................... 129
Index to Financial Statements............................................. F-1
</TABLE>
---------------
UNTIL , 1998, ALL DEALERS EFFECTING TRANSACTIONS IN THE NEW NOTES, WHETHER
OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED TO DELIVER A
PROSPECTUS. THIS IS IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A
PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD
ALLOTMENTS OR SUBSCRIPTIONS.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
JAFRA COSMETICS INTERNATIONAL
Offer to Exchange
11 3/4% Senior Subordinated Notes
due 2008, which have been
registered under the
Securities Act of 1933
as amended, for any and all
outstanding 11 3/4% Senior
Subordinated Notes due 2008.
---------------
PROSPECTUS
---------------
, 1998
- -------------------------------------------------------------------------------
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 20. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
INDEMNIFICATION OF DIRECTORS AND OFFICERS OF PARENT
Under the laws of Luxembourg, members of the board of a societe anonyme,
such as Parent, do not in principle incur any personal liability for the debts
and obligations of the company. Directors are however liable for damages
caused through their fault. Article 59 of the August 15, 1915 Luxembourg law
on commercial companies, for instance, provides that Directors are responsible
to the company, in accordance with the general provisions of Luxembourg law,
for the execution of the mandate for which they have been appointed and for
the faults committed during their management. They are jointly and severally
liable either to the company or to third parties for all damages resulting
from infringements of the law or of the company's articles. They shall be
discharged from this liability for infringements in which they did not take
part, only if no fault is imputable to them and if they denounce the
infringements to the next general meeting of the shareholders after the date
at which they became aware thereof. The members of the board of directors may
be discharged from their liability by the company's shareholders, but such
dischargement remains strictly internal to the company. Directors may not be
discharged from their obligations towards third parties. Furthermore, in the
event of bankruptcy of the company, according to article 495-1 of the
Luxembourg Commercial Code, the Luxembourg court may hold the company's
directors liable to reimburse any indebtedness of the bankrupt company,
whenever the company's assets are not sufficient and the director's serious
and wrongful offences have led to the bankruptcy of the company. Under article
495 of the Luxembourg Commercial Code, Directors may be declared personally
bankrupt if (i) they abusively pursued, for their interest, a nonprofitable
business which resulted in the company becoming insolvent or (ii) they
disposed of corporate assets in the same manner as if those had been their own
personal assets or (iii) they carried out business on behalf of the company
for their personal interest.
Article 11 of the Statuts coordonnes of Parent provides for the
indemnification of officers and directors of Parent as follows:
The corporation shall indemnify any director, any member of any committee
designated by the board of directors and any fonde de pouvoir and his or her
heirs, executors and administrators, against expenses (including attorneys'
fees) judgments and fines in connection with any action, suit or proceeding or
appeal therefrom, to which he or she may be made a party by reason of his or
her being or having been a director or a member of any committee designated by
the board of directors or a fonde de pouvoir of the corporation, or, at the
request of the corporation, of any other corporation partnership, joint
venture, trust or other enterprise in which the corporation holds a direct or
indirect ownership interest or of which the corporation is a direct or
indirect creditor and by which he or she is not entitled to be indemnified,
provided that he or she acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding had no
reasonable cause to believe his or her conduct was unlawful; and in the event
of a settlement, such indemnification shall be provided for all expenses
incurred and amounts paid in connection with such settlement unless the
corporation is advised by its legal counsel that the person to be indemnified
did not meet the above-indicated standard of conduct; except that in the case
of an action or suit brought by the corporation against such a director,
committee member or fonde de pouvoir to procure a judgment in favor of the
corporation (1) such indemnification shall be limited to expenses (including
attorneys' fees) actually and reasonably incurred by such person in the
defense or settlement of such action or suit, and (2) notwithstanding any
other provisions hereof, no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless and only to the extent that the Luxembourg
Courts or the courts in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of
all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such costs and expenses as the Luxembourg Court or
such other court may deem legal and proper.
II-1
<PAGE>
The corporation may purchase and maintain insurance on behalf of any person
who is or was or has agreed to become a director, committee member or fonde de
pouvoir of the corporation, or is or was serving at the request of the
corporation in any equivalent position in any such other corporation,
partnership, joint venture, trust or other enterprise, against any liability
asserted against him and incurred by him or on his behalf in any such
capacity, or arising out of his status as such, whether or not the corporation
would have the power to indemnify him against such liability under the
provisions of this Article, provided that such insurance is available on
acceptable terms, which determination shall be made by a vote of a majority of
the entire board of directors.
If this Article or any portion hereof shall be invalidated on any ground by
any court of competent jurisdiction, then the corporation shall nevertheless
indemnify each such director, committee member or fonde de pouvoir and may
indemnify each employee or agent of the corporation as to costs, charges and
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement with respect to any action, suit or proceeding, whether civil,
criminal, administrative or investigative, including an action by or in the
right of the corporation, to the fullest extent permitted by any applicable
portion of this Article that shall not have been invalidated and to the
fullest extent permitted by applicable law.
Subject to the appliable provisions of Luxembourg law and in particular
Section 59 of the Luxembourg Law on Commercial Companies, no director,
committee member or fonde de pouvoir of the corporation shall be liable to the
corporation or its stockholders for his actions or omissions when performing
his duties as a director, committee member or fonde de pouvoir, provided that
nothing contained in these Articles of Incorporation shall eliminate or limit
the liability of a director, committee member or fonde de pouvoir (i) for any
breach of his duty of loyalty to the corporation or its stockholders, (ii) for
acts or omissions not in good faith or which involves intentional misconduct
or a knowing violation of the law, or (iii) for any transaction from which the
director derived an improper personal benefit.
INDEMNIFICATION OF DIRECTORS AND OFFICERS OF U.S. ISSUER
Section 145 of the Delaware Corporation Law, as amended, provides in regards
to indemnification of directors and officers as follows:
"145 INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS;
INSURANCE.--(a) A corporation shall have power to indemnify any person who
was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of
the corporation) by reason of the fact that the person is or was a
director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith
and in a manner he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which he reasonably believed to be in
or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had reasonable cause to believe that
his conduct was unlawful.
(b) A corporation shall have power to indemnify any person who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the corporation to procure a
judgment in its favor by reason of the fact that the person is or was a
director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise against expenses (including attorneys' fees) actually and
reasonably incurred by the person in connection with the defense or
settlement of such action or suit if the person acted in good faith and in
a manner the person reasonably believed to be in or not opposed to the best
interests of the corporation and except that no
II-2
<PAGE>
indemnification shall be made in respect of any claim, issue or matter as
to which such person shall have been adjudged to be liable to the
corporation unless and only to the extent that the Court of Chancery or the
court in which such action or suit was brought shall determine upon
application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which the Court of Chancery or such
other court shall deem proper.
(c) To the extent that a present or former director or officer of a
corporation has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in subsections (a) and (b) of
this section, or in defense of any claim, issue or matter therein, such
person shall be indemnified against expenses (including attorneys' fees)
actually and reasonably incurred by such person in connection therewith.
(d) Any indemnification under subsections (a) and (b) of this section
(unless ordered by a court) shall be made by the corporation only as
authorized in the specific case upon a determination that indemnification
of the director, officer, employee or agent is proper in the circumstances
because the person has met the applicable standard of conduct set forth in
subsections (a) and (b) of this section. Such determination shall be made,
with respect to a person who is a director or officer at the time of such
determination (1) by a majority vote of the directors who are not parties
to such action, suit or proceeding, even though less than a quorum, or (2)
by a committee of such directors designated by majority vote of such
directors, even though less than a quorum, or (3) if there are no such
directors, or if such directors so direct, by independent legal counsel in
a written opinion, or (4) by the stockholders.
(e) Expenses (including attorney's fees) incurred by an officer or
director in defending any civil, criminal, administrative or investigative
action, suit or proceeding may be paid by the corporation in advance of the
final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of such director or officer to repay such
amount if it shall ultimately be determined that such person is not
entitled to be indemnified by the corporation as authorized in this
section. Such expenses (including attorneys' fees) incurred by former
directors and officers or other employees and agents may be so paid upon
such terms and conditions, if any, as the corporation deems appropriate.
(f) The indemnification and advancement of expenses provided by, or
granted pursuant to the other subsections of this section shall not be
deemed exclusive of any other rights to which those seeking indemnification
or advancement of expenses may be entitled under any by-law, agreement,
vote of stockholders or disinterested directors or otherwise, both as to
action in such person's official capacity and as to action in another
capacity while holding such office.
(g) A corporation shall have power to purchase and maintain insurance on
behalf of any person who is or was a director, officer, employee or agent
of the corporation, or is or was serving at the request of the corporation
as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise against any liability
asserted against such person and incurred by such person in any such
capacity, or arising out of such person's status as such, whether or not
the corporation would have the power to indemnify such person against such
liability under this section.
(h) For purposes of this section, references to "the corporation" shall
include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued,
would have had power and authority to indemnify its directors, officers,
and employees or agents, so that any person who is or was a director,
officer, employee or agent of such constituent corporation, or is or was
serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, shall stand in the same position under
this section with respect to the resulting or surviving corporation as such
person would have with respect to such constituent corporation if its
separate existence had continued.
(i) For purposes of this section, references to "other enterprises" shall
include employee benefit plans; references to "fines" shall include any
excise taxes assessed on a person with respect to any employee benefit
plan; and references to "serving at the request of the corporation" shall
include any service as a
II-3
<PAGE>
director, officer, employee or agent of the corporation which imposes
duties on, or involves services by, such director, officer, employee, or
agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner such
person reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan shall be deemed to have acted in
a manner "not opposed to the best interests of the corporation" as referred
to in this section.
(j) The indemnification and advancement of expenses provided by, or
granted pursuant to, this section shall, unless otherwise provided when
authorized or ratified, continue as to a person who has ceased to be a
director, officer, employee or agent and shall inure to the benefit of the
heirs, executors and administrators of such a person."
The Certificate of Incorporation and Article VI of the By-Laws of the U.S.
Issuer authorize indemnification of officers and directors to the full extent
permitted under Delaware law, including a provision eliminating (except under
certain enumerated circumstances) the liability of directors for duty of care
violations.
The indemnification provided for the Delaware General Corporation Law is not
exclusive of any other rights of indemnification, and a corporation may
maintain insurance against liabilities for which indemnification is not
expressly provided by the Delaware General Corporation Law.
INDEMNIFICATION OF DIRECTORS AND OFFICERS OF JAFRA S.A.
Under Mexican law, when a duly appointed officer acts within the scope of
his or her authority, the corporation will respond to affected third parties
for any liabilities or expenses resulting from the performance of the duties
any such officer absent negligence or misconduct of the relevant officer.
Articles 35 through 42 of Jafra S.A.'s by-laws (estatutos sociales) provide
as follows:
THIRTY FIVE. Indemnity. The Company shall indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that he is or was or
has agreed to become a director or officer of the Company, or is or was
serving or has agreed to serve at the request of the Company as a director
or officer, of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action alleged to have been taken or
omitted in such capacity, and may indemnify any person who was or is a
party or is threatened to be made a party to such an action, suit or
proceeding by reason of the fact that he is or was or has agreed to become
an employee or agent of the Company, or is or was serving or has agreed to
serve at the request of the Company as an employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him or on his behalf in
connection with such action, suit or proceeding and any appeal therefrom,
if he acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company, and, with respect to
any criminal action or proceeding had no reasonable cause to believe his
conduct was unlawful; except that in the case of an action or suit by or in
the right of the Company to procure a judgment in its favor (1) such
indemnification shall be limited to expenses (including attorneys' fees)
actually and reasonably incurred by such person in the defense or
settlement of such action or suit, and (2) no indemnification shall be made
in respect of any claim, issue or matter as to which such person shall have
been adjudged to be liable to the Company unless and only to the extent the
court in which such action or suit was brought shall determine upon
application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which the corresponding court shall
deem proper.
The termination of any action, suit or proceeding by judgment, order
settlement, conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which he reasonably believed to be in
or not opposed to the best interests of the Company, and, with respect to
any criminal action or proceeding, had reasonable cause to believe that his
conduct was unlawful.
II-4
<PAGE>
THIRTY SIX. Successful Defense. To the extent that a director, officer,
employee or agent of the Company has been successful on the merits or
otherwise in defense of any action, suit or proceeding referred to in
Article Thirty Five hereof or in defense of any claim, issue or matter
therein, he shall be indemnified against expenses (including attorneys'
fees) actually and reasonably incurred by him in connection therewith.
THIRTY SEVEN. Determination That Indemnification Is Proper. Any
indemnification of a director or officer of the Company under Article
Thirty Five hereof (unless ordered by a court) shall be made by the Company
unless a determination is made that indemnification of the director or
officer is not proper in the circumstances because he has not met the
applicable standard of conduct set forth in Article Thirty Five hereof. Any
indemnification of an employee or agent of the Company under Article Thirty
Five hereof (unless ordered by a court) may be made by the Company upon a
determination that indemnification of the employee or agent is proper in
the circumstances because he has met the applicable standard of conduct set
forth in Article Thirty Five hereof. Any such determination shall be made
(1) by the Board of Directors by a majority vote of a quorum consisting of
directors who were not parties to such action, suit or proceeding, or (2)
if such a quorum is not obtainable, or, even if obtainable a quorum of
disinterested directors so directs, by independent legal counsel in a
written opinion, or (3) by the stockholders.
THIRTY EIGHT. Payment of Expenses. Expenses (including attorneys' fees)
incurred by a director or officer in defending any civil, criminal,
administrative or investigative action, suit or proceeding shall be paid by
the Company in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of the director
or officer to repay such amount if it shall ultimately be determined that
he is not entitled to be indemnified by the Company as authorized in this
Article. Such expenses (including attorneys' fees) incurred by other
employees and agents may be so paid upon such terms and conditions, if any,
as the Board of Directors deems appropriate. The Board of Directors may
authorize the Company's counsel to represent such director, officer,
employee or agent in any action, suit or proceeding, whether or not the
Company is a party to such action, suit or proceeding.
THIRTY NINE. Procedure for Indemnification of Directors and Officers. Any
indemnification of a director or officer of the Company under Articles
Thirty Five and Thirty Six, or advance of costs, charges and expenses to a
director or officer under Article Thirty Eight hereof, shall be made
promptly, and in any event within 30 days, upon the written request of the
director or officer. If a determination by the Company that the director or
officer is entitled to indemnification pursuant to this Article is
required, and the Company fails to respond within sixty days to a written
request for indemnity, the Company shall be deemed to have approved such
request. If the Company denies a written request for indemnity or
advancement of expenses, in whole or in part, or if payment in full
pursuant to such request is not made within 30 days, the right to
indemnification or advances as granted by this Article shall be enforceable
by the director or officer in any court of competent jurisdiction. Such
person's costs and expenses incurred in connection with successfully
establishing his right to indemnification, in whole or in part, in any such
action shall also be indemnified by the Company. It shall be a defense to
any such action (other than an action brought to enforce a claim for the
advance of costs, charges and expenses under Article Thirty Eight where the
required undertaking, if any, has been received by the Company) that the
claimant has not met the standard of conduct set forth in Article Thirty
Five hereof, but the burden of proving such defense shall be on the
Company. Neither the failure of the Company (including its Board of
Directors, its independent legal counsel, and its stockholders) to have
made a determination prior to the commencement of such action that
indemnification of the claimant is proper in the circumstances because he
has met the applicable standard of conduct set forth in Article Thirty Five
hereof, nor the fact that there has been an actual determination by the
Company (including its Board of Directors, its independent legal counsel,
and its stockholders) that the claimant has not met such applicable
standard of conduct, shall be a defense to the action or create a
presumption that the claimant has not met the applicable standard of
conduct.
FORTY. Survival; Preservation of Other Rights. The foregoing
indemnification provisions shall be deemed to be a contract between the
Company and each director, officer, employee and agent who serves in any
such capacity at any time while these provisions are in effect and any
repeal or modification thereof
II-5
<PAGE>
shall not affect any right or obligation then existing with respect to any
state of facts then or previously existing or any action, suit or
proceeding previously or thereafter brought or threatened based in whole or
in part upon any such state of facts. Such a contract right may not be
modified retroactively without the consent of such director, officer,
employee or agent.
The indemnification contemplated in these by-laws shall not be deemed
exclusive of any other rights to which those indemnified may be entitled
under any by-law, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in his official capacity and as
to action in another capacity while holding such office, and shall continue
as to a person who has ceased to be a director, officer, employee or agent
and shall inure to the benefit of the heirs, executors and administrators
of such a person.
FORTY ONE. Insurance. The Company shall purchase and maintain insurance
on behalf of any person who is or was or has agreed to become a director or
officer of the Company, or is or was serving at the request of the Company
as a director or officer of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against
him and incurred by him or on his behalf in any such capacity, or arising
out of his status as such, whether or not the Company would have the power
to indemnify him against such liability under the provisions of these by-
laws, provided that such insurance is available on acceptable terms, which
determination shall be made by a vote of a majority of the entire Board of
Directors.
FORTY TWO. Severability. If this chapter of these by-laws or any portion
hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify each director
or officer and may indemnify each employee or agent of the Company as to
costs, charges and expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement with respect to any action, suit or
proceeding, whether civil, criminal, administrative or investigative,
including an action by or in the right of the Company, to the fullest
extent permitted by any applicable portion of these by-laws that shall not
have been invalidated and to the fullest extent permitted by applicable
law.
ITEM 21. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
(A) LIST OF EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
3.1 Articles of Association (Statuts Coordonnes) of CDRJ Investments (Lux)
S.A., as restated on September 29, 1998.
3.2 Certificate of Incorporation of CDRJ Acquisition Corporation, dated
March 31, 1998.*
3.3 Certificate of Merger of Jafra Cosmetics International, Inc. into CDRJ
Acquisition Corporation, dated April 30, 1998.*
3.4 Amended and Restated By-laws of Jafra Cosmetics International, Inc.
(formerly CDRJ Acquisition Corporation), as adopted on July 21, 1998.*
3.5 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Jafra Cosmetics
International, S.A. de C.V., together with a unofficial summary
thereof in English.*
3.6 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Consultoria
Jafra, S.A. de C.V., together with a unofficial summary thereof in
English.
3.7 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Dirsamex, S.A. de
C.V., together with a unofficial summary thereof in English.
</TABLE>
- --------
* Previously filed
II-6
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
3.8 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Distribuidora
Venus, S.A. de C.V., together with a unofficial summary thereof in
English.
3.9 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Jafra Cosmetics
S. de R.L. de C.V., together with a unofficial summary thereof in
English.
3.10 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Qualifax, S.A. de
C.V., together with a unofficial summary thereof in English.
3.11 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Reday, S.A. de
C.V., together with a unofficial summary thereof in English.
4.1 Indenture, dated April 30, 1998, among CDRJ Acquisition Corporation,
Jafra Cosmetics International, S.A. de C.V., CDRJ Investments (Lux)
S.A., and State Street Bank and Trust Company.*
4.2 First Supplemental Indenture, dated April 30, 1998, among Consultoria
Jafra, S.A. de C.V., Distribuidora Venus, S.A. de C.V., Dirsamex, S.A.
de C.V., Reday, S.A. de C.V., Qualifax S.A. de C.V., and Jafra
Cosmetics S.R.L., CDRJ Acquisition Corporation and Jafra Cosmetics
International, S.A. de C.V. and State Street Bank and Trust Company.*
4.3 Purchase Agreement, dated April 28, 1998, between Credit Suisse First
Boston Corporation, Chase Securities Inc., CDRJ Acquisition
Corporation, Jafra Cosmetics International, S.A. de C.V., and CDRJ
Investments (Lux) S.A.*
4.4 Purchase Agreement Amendment, dated April 30, 1998, executed on behalf
of each of Reday, S.A. de C.V., Distribuidora Venus, S.A. de C.V.,
Dirsamex, S.A. de C.V., Qualifax, S.A. de C.V., Jafra Cosmetics,
S.R.L., Consultoria Jafra, S.A. de C.V., Credit Suisse First Boston
Corporation, and Chase Securities Inc.*
4.5 Registration Rights Agreement, dated April 30, 1998, among CDRJ
Acquisition Corporation, Jafra Cosmetics International, Inc., Jafra
Cosmetics International, S.A. de C.V., CDRJ Investments (Lux) S.A.,
Reday, S.A. de C.V., Distribuidora, S.A. de C.V., Dirsamex, S.A. de
C.V., Qualifax, S.A. de C.V., Jafra Cosmetics, S.A. de C.V.,
Consultoria Jafra, S.A. de C.V., and Credit Suisse First Boston
Corporation.*
4.6 Credit Agreement, dated April 30, 1998, among CDRJ Acquisition
Corporation, Jafra Cosmetics International, S.A. de C.V., CDRJ
Investments (Lux) S.A., as Guarantor and Parent of the Borrowers, the
Lenders named therein and Credit Suisse First Boston, as
Administrative Agent.*
4.7 Amendment No. 1 to the Credit Agreement, dated August 26, 1998.*
4.8 Indemnity, Subrogation and Contribution Agreement, dated April 30,
1998, among Jafra Cosmetics International, S.A. de C.V. ("JCISA"),
each Subsidiary of JCSI listed on Schedule I thereto and Credit Suisse
First Boston.*
4.9 JCI Guarantee Agreement, dated April 30, 1998, between CDRJ
Acquisition Corporation and Credit Suisse First Boston.*
4.10 JCISA Guarantee Agreement, dated April 30, 1998, between Jafra
Cosmetics International, S.A. de C.V. and Credit Suisse First Boston.*
4.11 JCISA Subsidiary Guarantee Agreement, dated April 30, 1998, among each
of the subsidiaries of Jafra Cosmetics International, S.A de C.V.
listed on Schedule I thereto, and Credit Suisse First Boston.*
4.12 Parent Guarantee Agreement, dated April 30, 1998, between CDRJ
Investments (Lux) S.A. and Credit Suisse First Boston.*
</TABLE>
- --------
* Previously filed
II-7
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
4.13 Pledge Agreement, dated April 30, 1998 among CDRJ Investments (Lux)
S.A., CDRJ North Atlantic Sarl, CDRJ Latin America Holding Company
B.V., Latin Cosmetics Holdings B.V., Regional Cosmetics Holding B.V.,
Southern Cosmetics Holdings B.V., and CDRJ Mexico Holding Company
B.V., CDRJ Acquisition Corporation, Jafra Cosmetics International,
S.A. de C.V. and Credit Suisse First Boston.*
4.14 Security Agreement, dated April 30, 1998, among CDRJ Acquisition
Corporation ("JCI"), each subsidiary of JCI listed on Schedule I
thereto and Credit Suisse First Boston.*
4.15 Deed of Trust, with Assignment of Leases and Rents, Fixture Filing and
Security Agreement, dated April 30, 1998, by Jafra Cosmetics
International, Inc. to TitleServ Agency of New York City, Inc., as
trustee for the Benefit of Credit Suisse First Boston.*
4.16 Acknowledgment of Obligations and Mortgage, dated April 30, 1998,
granted by Reday, S.A. de C.V. in favor of Credit Suisse First Boston,
together with an unofficial English translation thereof.*
4.17 Notarial Deed of Pledge, dated April 30, 1998, with respect to the
pledge to Credit Suisse First Boston of (i) 24 ordinary shares of the
capital stock of CDRJ Europe Holding Company B.V. by Jafra Cosmetics
International, Inc., and (ii) 40 ordinary shares of the capital stock
of CDRJ Latin America Holding B.V. by CDRJ North Atlantic (Lux) Sarl.*
4.18 Form of 11 3/4% Senior Subordinated Note Due 2008 (Existing Note)
(contained in Exhibit 4.1)*.
4.19 Form of 11 3/4% Senior Subordinated Note Due 2008 (New Note)
(contained in Exhibit 4.1)*.
5.1 Opinion of Debevoise & Plimpton.
5.2 Opinion of Ritch, Heather Y Mueller, S.C.
5.3 Opinion of Bonn & Schmitt
10.1 Indemnification Agreement, dated April 30, 1998, among CDRJ
Investments (Lux) S.A., CDRJ Acquisition Corporation, Jafra Cosmetics
International, S.A. de C.V., Clayton, Dubilier & Rice, Inc., Clayton,
Dubilier & Rice Fund V Limited Partnership.*
10.2 Consulting Agreement, dated April 30, 1998, by and among CDRJ
Investments (Lux) S.A., Jafra Cosmetics International, Inc. and Jafra
Cosmetics, S.A. de C.V., and Clayton, Dubilier & Rice, Inc.
10.3 Form of Employment Agreement for Messrs. Clark, Rubio, Mason, Guirao
and Barrios.*
10.4 Amended and Restated Jafra Cosmetics International, Inc. Stock
Incentive Plan, as adopted September 3, 1998.
10.5 CDRJ Investments (Lux) S.A. Form of Management Stock Option Agreement.
10.6 Amended and Restated Stock Purchase Warrant, dated as of September 30,
1998, by and between CDRJ Investments (Lux) S.A. and Jafra Cosmetic
International Inc.
10.7 Registration and Participation Agreement, dated April 30, 1998, among
CDRJ Investments (Lux) S.A. and Clayton, Dubilier & Rice Fund V
Limited Partnership and the other parties thereto.*
10.8 CDRJ Investments (Lux) S.A. Form of Management Stock Subscription
Agreement
10.9 CDRJ Investments (Lux) S.A. Form of Individual Investor Stock
Subscription Agreement
12.1 Statements re: computation of ratios.*
21.1 Subsidiaries of the registrant.*
23.1 Consent of Deloitte & Touche LLP.
23.2 Consent of KPMG Peat Marwick LLP.
23.3 Consent of Debevoise & Plimpton (contained in Exhibit 5.1).
23.4 Consent of Ritch, Heather Y Mueller, S.C. (contained in Exhibit 5.2)
23.5 Consent of Bonn & Schmitt (contained in Exhibit 5.3)
25.1 Statement of Eligibility and Qualification Under the Trust Indenture
Act of 1939 (Form T-1) of State Street Bank and Trust Company.*
27.1 Financial Data Schedule.*
99.1 Form of Letter of Transmittal.
99.2 Form of Notice of Guaranteed Delivery.
99.3 Form of Exchange Agreement among Jafra Cosmetics International, Inc.,
Jafra Cosmetics International, S.A. de C.V. and State Street Bank and
Trust Company.
99.4 Instruction to Registered Holder and/or Book Entry Transfer
Participant from Beneficial Owner for Tender of 11 3/4% Senior
Subordinated Notes Due 2008 for registered 11 3/4% Senior Subordinated
Notes Due 2008.
</TABLE>
- --------
* Previously filed.
II-8
<PAGE>
(B) FINANCIAL STATEMENT SCHEDULES.
Financial statement schedules of the Company for which provision is made in
the applicable accounting regulations of the Commissions are set forth below.
JAFRA COSMETICS INTERNATIONAL (PREDECESSOR)
SCHEDULE II--VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
ADDITIONS
---------------------
BALANCE AT CHARGED TO CHARGED TO BALANCE
BEGINNING COSTS AND OTHER DEDUCTIONS -- AT END
DESCRIPTION OF PERIOD EXPENSES ACCOUNTS RECOVERIES OF PERIOD
----------- ---------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Accounts Receivable:
1997................. 1,919 158 -- 20 2,057
1996................. 1,749 260 -- 90 1,919
1995................. 1,842 85 -- 178 1,749
Inventories:
1997................. 2,314 240 -- 926 1,628
1996................. 2,280 34 -- -- 2,314
1995................. 2,024 256 -- -- 2,280
</TABLE>
ITEM 22. UNDERTAKINGS.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by
the final adjudication of such issue.
The undersigned registrant hereby undertakes to respond to requests for
information that is incorporated by reference into the prospectus pursuant to
Items 4, 10(b), 11 or 13 of this Form, within one business day of receipt of
such request, and to send the incorporated documents by first class mail or
other equally prompt means. This includes information contained in documents
filed subsequent to the effective date of the registration statement through
the date of responding to the request.
The undersigned registrant herby undertakes to supply by means of a post-
effective amendment all information concerning a transaction, and the company
being acquired involved therein, that was not the subject of and included in
the registration statement when it became effective.
II-9
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER 27,
1998.
CDRJ Investments (Lux) S.A.
/s/ Ronald B. Clark
By: _____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer of
the Advisory Committee and
Director
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------ Officer of the 1998
RONALD B. CLARK Advisory Committee
and Director
(Principal
executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------ Officer of the 1998
JAMES BRILL Advisory Committee
(Principal
financial officer,
Principal
accounting
officer)
/s/ Ralph S. Mason, III Secretary and October 27,
- ------------------------------------ Executive Vice 1998
RALPH S. MASON, III President of the
Advisory Committee
(Representative in
the U.S.)
/s/ Donald J. Gogel* Director October 27,
- ------------------------------------ 1998
DONALD J. GOGEL
/s/ Steven D. Goldstein* Director October 27,
- ------------------------------------ 1998
STEVEN D. GOLDSTEIN
II-10
<PAGE>
SIGNATURES TITLE DATE
/s/ Thomas E. Ireland* Director October 27,
- ------------------------------------- 1998
THOMAS E. IRELAND
/s/ David A. Novak* Director October 27,
- ------------------------------------- 1998
DAVID A. NOVAK
/s/ Paul Orfalea* Director October 27,
- ------------------------------------- 1998
PAUL ORFALEA
/s/ Ann Reese* Director October 27,
- ------------------------------------- 1998
ANN REESE
/s/ Edward H. Rensi* Director October 27,
- ------------------------------------- 1998
EDWARD H. RENSI
/s/ Gonzalo Rubio* Director October 27,
- ------------------------------------- 1998
GONZALO RUBIO
/s/ Christopher Sinclair* Director October 27,
- ------------------------------------- 1998
CHRISTOPHER SINCLAIR
/s/ Kenneth D. Taylor* Director October 27,
- -------------------------------------
KENNETH D. TAYLOR
October 27,
/s/ Ralph S. Mason, III 1998
*By_____________________________
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-11
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA ON OCTOBER
27, 1998.
Jafra Cosmetics International, Inc.
/s/ Ronald B. Clark
By: ____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer and
Director
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------- Officer and 1998
RONALD B. CLARK Director (Principal
executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------- Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting officer)
/s/ Donald J. Gogel* Director October 27,
- ------------------------------------- 1998
DONALD J. GOGEL
/s/ Steven D. Goldstein* Director October 27,
- ------------------------------------- 1998
STEVEN D. GOLDSTEIN
/s/ Thomas E. Ireland* Director October 27,
- ------------------------------------- 1998
THOMAS E. IRELAND
/s/ David A. Novak* Director October 27,
- ------------------------------------- 1998
DAVID A. NOVAK
II-12
<PAGE>
SIGNATURES TITLE DATE
/s/ Paul Orfalea* Director October 27,
- ------------------------------------- 1998
PAUL ORFALEA
/s/ Ann Reese* Director October 27,
- ------------------------------------- 1998
ANN REESE
/s/ Edward H. Rensi* Director October 27,
- ------------------------------------- 1998
EDWARD H. RENSI
/s/ Gonzalo Rubio* Director October 27,
- ------------------------------------- 1998
GONZALO RUBIO
/s/ Christopher Sinclair* Director October 27,
- ------------------------------------- 1998
CHRISTOPHER SINCLAIR
/s/ Kenneth D. Taylor* Director October 27,
- ------------------------------------- 1998
KENNETH D. TAYLOR
/s/ Ralph S. Mason, III
*By:____________________________
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-13
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER
27, 1998.
Jafra Cosmetics International, S.A.
de C.V.
/s/ Ronald B. Clark
By: ____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer and
Director
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------- Officer and 1998
RONALD B. CLARK Director (Principal
executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------- Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------- President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Donald J. Gogel* Director October 27,
- ------------------------------------- 1998
DONALD J. GOGEL
/s/ Steven D. Goldstein* Director October 27,
- ------------------------------------- 1998
STEVEN D. GOLDSTEIN
II-14
<PAGE>
SIGNATURES TITLE DATE
/s/ Thomas E. Ireland* Director October 27,
- ------------------------------------- 1998
THOMAS E. IRELAND
/s/ David A. Novak* Director October 27,
- ------------------------------------- 1998
DAVID A. NOVAK
/s/ Paul Orfalea* Director October 27,
- ------------------------------------- 1998
PAUL ORFALEA
/s/ Ann Reese* Director October 27,
- ------------------------------------- 1998
ANN REESE
/s/ Edward H. Rensi* Director October 27,
- ------------------------------------- 1998
EDWARD H. RENSI
/s/ Gonzalo Rubio* Director October 27,
- ------------------------------------- 1998
GONZALO RUBIO
/s/ Christopher Sinclair* Director October 27,
- ------------------------------------- 1998
CHRISTOPHER SINCLAIR
/s/ Kenneth D. Taylor* Director October 27,
- ------------------------------------- 1998
KENNETH D. TAYLOR
*By: /s/ Ralph S. Mason, III October 27,
- ------------------------------------- 1998
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-15
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER 27,
1998.
Consultoria Jafra, S.A. de C.V.
/s/ Ronald B. Clark
By: _____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------ Officer (Principal 1998
RONALD B. CLARK executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------ Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting
officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------ President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Alberto Mena* Director October 27,
- ------------------------------------ 1998
ALBERTO MENA
/s/ Marta Cecilia Echeverri Correa* Director October 27,
- ------------------------------------ 1998
MARTA CECILIA ECHEVERRI CORREA
October 27,
/s/ Ralph S. Mason, III 1998
*By: __________________________
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-16
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER 27,
1998.
Dirsamex, S.A. de C.V.
/s/ Ronald B. Clark
By: _____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27, 1998
- ------------------------------------ Officer (Principal executive officer)
RONALD B. CLARK
/s/ James Brill Chief Financial October 27,
- ------------------------------------ Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting
officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------ President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Alberto Mena* Director October 27,
- ------------------------------------ 1998
ALBERTO MENA
/s/ Marta Cecilia Echeverri Correa* Director October 27,
- ------------------------------------ 1998
MARTA CECILIA ECHEVERRI CORREA
/s/ Ralph S. Mason, III October 27,
*By: __________________________ 1998
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-17
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER
27, 1998.
Distribuidora Venus, S.A. de C.V.
/s/ Ronald B. Clark
By: ____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------- Officer (Principal 1998
RONALD B. CLARK executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------- Officer (Principal 1998
JAMES BRILL financial officer,
Principal
acccounting
officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------- President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Alberto Mena* Director October 27,
- ------------------------------------- 1998
ALBERTO MENA
/s/ Marta Cecilia Echeverri Correa* Director October 27,
- ------------------------------------- 1998
MARTA CECILIA ECHEVERRI CORREA
/s/ Ralph S. Mason, III October 27,
*By:____________________________ 1998
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-18
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER 27,
1998.
JAFRA COSMETICS S. de R. L. de C.V.
/s/ Ronald B. Clark
By: ____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURES TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------- Officer (Principal 1998
RONALD B. CLARK executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------- Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------- President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Alberto Mena* Director October 27,
- ------------------------------------- 1998
ALBERTO MENA
/s/ Marta Cecilia Echeverri Correa* Director October 27,
- ------------------------------------- 1998
MARTA CECILIA ECHEVERRI CORREA
*By: /s/ Ralph S. Mason, III
-----------------------------------
RALPH S. MASON, III October 27,
ATTORNEY-IN-FACT 1998
II-19
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER
27, 1998.
Qualifax, S.A. de C.V.
/s/ Ronald B. Clark
By: ____________________________
Name: Ronald B. Clark
Title: Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURE TITLE DATE
/s/ Ronald B. Clark Chief Executive October 27,
- ------------------------------------- Officer (Principal 1998
RONALD B. CLARK executive officer)
/s/ James Brill Chief Financial October 27,
- ------------------------------------- Officer (Principal 1998
JAMES BRILL financial officer,
Principal
accounting officer)
/s/ Ralph S. Mason, III Executive Vice October 27,
- ------------------------------------- President 1998
RALPH S. MASON, III (Representative in
the U.S.)
/s/ Alberto Mena* Director October 27,
- ------------------------------------- 1998
ALBERTO MENA
/s/ Marta Cecilia Echeverri Correa* Director October 27,
- ------------------------------------- 1998
MARTA CECILIA ECHEVERRI CORREA
/s/ Ralph S. Mason, III October 27,
*By: ___________________________ 1998
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-20
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT
ON FORM S-4 TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED IN THE CITY OF WESTLAKE VILLAGE, STATE OF CALIFORNIA, ON OCTOBER 27,
1998.
Reday, S.A. de C.V.
/s/ Ronald B. Clark
By: __________________________________
Name: Ronald B. Clark
Title:Chief Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
SIGNATURE TITLE DATE
/s/ Ronald B. Clark Chief Executive
- ------------------------------------ Officer (Principal October 27,
RONALD B. CLARK executive officer) 1998
/s/ James Brill
- ------------------------------------ Chief Financial October 27,
JAMES BRILL Officer (Principal 1998
financial officer,
Principal
accounting
officer)
/s/ Ralph S. Mason, III
- ------------------------------------ Executive Vice October 27,
RALPH S. MASON, III President 1998
(Representative in
the U.S.)
Director
/s/ Alberto Mena* October 27,
- ------------------------------------ 1998
ALBERTO MENA
Director
/s/ Marta Cecilia Echeverri Correa* October 27,
- ------------------------------------ 1998
MARTA CECILIA ECHEVERRI CORREA
October 27,
/s/ Ralph S. Mason, III 1998
*By: __________________________
RALPH S. MASON, III
ATTORNEY-IN-FACT
II-21
<PAGE>
EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
3.1 Articles of Association (Statuts Coordonnes) of CDRJ Investments (Lux)
S.A., as restated on September 29, 1998.
3.2 Certificate of Incorporation of CDRJ Acquisition Corporation, dated
March 31, 1998.*
3.3 Certificate of Merger of Jafra Cosmetics International, Inc. into CDRJ
Acquisition Corporation, dated April 30, 1998.*
3.4 Amended and Restated By-laws of Jafra Cosmetics International, Inc.
(formerly CDRJ Acquisition Corporation), as adopted on July 21, 1998.*
3.5 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Jafra Cosmetics
International, S.A. de C.V., together with a unofficial summary
thereof in English.*
3.6 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Consultoria
Jafra, S.A. de C.V., together with a unofficial summary thereof in
English.
3.7 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Dirsamex, S.A. de
C.V., together with a unofficial summary thereof in English.
3.8 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Distribuidora
Venus, S.A. de C.V., together with a unofficial summary thereof in
English.
3.9 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Jafra Cosmetics
S. de R.L. de C.V., together with a unofficial summary thereof in
English.
3.10 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Qualifax, S.A. de
C.V., together with a unofficial summary thereof in English.
3.11 Deed of Incorporation (acta constitutiva), including all amendments
thereto, and current by-laws (estatutos sociales) of Reday, S.A. de
C.V., together with a unofficial summary thereof in English.
4.1 Indenture, dated April 30, 1998, among CDRJ Acquisition Corporation,
Jafra Cosmetics International, S.A. de C.V., CDRJ Investments (Lux)
S.A., and State Street Bank and Trust Company.*
4.2 First Supplemental Indenture, dated April 30, 1998, among Consultoria
Jafra, S.A. de C.V., Distribuidora Venus, S.A. de C.V., Dirsamex, S.A.
de C.V., Reday, S.A. de C.V., Qualifax S.A. de C.V., and Jafra
Cosmetics S.R.L., CDRJ Acquisition Corporation and Jafra Cosmetics
International, S.A. de C.V. and State Street Bank and Trust Company.*
4.3 Purchase Agreement, dated April 28, 1998, between Credit Suisse First
Boston Corporation, Chase Securities Inc., CDRJ Acquisition
Corporation, Jafra Cosmetics International, S.A. de C.V., and CDRJ
Investments (Lux) S.A.*
4.4 Purchase Agreement Amendment, dated April 30, 1998, executed on behalf
of each of Reday, S.A. de C.V., Distribuidora Venus, S.A. de C.V.,
Dirsamex, S.A. de C.V., Qualifax, S.A. de C.V., Jafra Cosmetics,
S.R.L., Consultoria Jafra, S.A. de C.V., Credit Suisse First Boston
Corporation, and Chase Securities Inc.*
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
4.5 Registration Rights Agreement, dated April 30, 1998, among CDRJ
Acquisition Corporation, Jafra Cosmetics International, Inc., Jafra
Cosmetics International, S.A. de C.V., CDRJ Investments (Lux) S.A.,
Reday, S.A. de C.V., Distribuidora, S.A. de C.V., Dirsamex, S.A. de
C.V., Qualifax, S.A. de C.V., Jafra Cosmetics, S.A. de C.V.,
Consultoria Jafra, S.A. de C.V., and Credit Suisse First Boston
Corporation.*
4.6 Credit Agreement, dated April 30, 1998, among CDRJ Acquisition
Corporation, Jafra Cosmetics International, S.A. de C.V., CDRJ
Investments (Lux) S.A., as Guarantor and Parent of the Borrowers, the
Lenders named therein and Credit Suisse First Boston, as
Administrative Agent.*
4.7 Amendment No. 1 to the Credit Agreement, dated August 26, 1998.*
4.8 Indemnity, Subrogation and Contribution Agreement, dated April 30,
1998, among Jafra Cosmetics International, S.A. de C.V. ("JCISA"),
each Subsidiary of JCSI listed on Schedule I thereto and Credit Suisse
First Boston.*
4.9 JCI Guarantee Agreement, dated April 30, 1998, between CDRJ
Acquisition Corporation and Credit Suisse First Boston.*
4.10 JCISA Guarantee Agreement, dated April 30, 1998, between Jafra
Cosmetics International, S.A. de C.V. and Credit Suisse First Boston.*
4.11 JCISA Subsidiary Guarantee Agreement, dated April 30, 1998, among each
of the subsidiaries of Jafra Cosmetics International, S.A de C.V.
listed on Schedule I thereto, and Credit Suisse First Boston.*
4.12 Parent Guarantee Agreement, dated April 30, 1998, between CDRJ
Investments (Lux) S.A. and Credit Suisse First Boston.*
4.13 Pledge Agreement, dated April 30, 1998 among CDRJ Investments (Lux)
S.A., CDRJ North Atlantic Sarl, CDRJ Latin America Holding Company
B.V., Latin Cosmetics Holdings B.V., Regional Cosmetics Holding B.V.,
Southern Cosmetics Holdings B.V., and CDRJ Mexico Holding Company
B.V., CDRJ Acquisition Corporation, Jafra Cosmetics International,
S.A. de C.V. and Credit Suisse First Boston.*
4.14 Security Agreement, dated April 30, 1998, among CDRJ Acquisition
Corporation ("JCI"), each subsidiary of JCI listed on Schedule I
thereto and Credit Suisse First Boston.*
4.15 Deed of Trust, with Assignment of Leases and Rents, Fixture Filing and
Security Agreement, dated April 30, 1998, by Jafra Cosmetics
International, Inc. to TitleServ Agency of New York City, Inc., as
trustee for the Benefit of Credit Suisse First Boston.*
4.16 Acknowledgment of Obligations and Mortgage, dated April 30, 1998,
granted by Reday, S.A. de C.V. in favor of Credit Suisse First Boston,
together with an unofficial English translation thereof.*
4.17 Notarial Deed of Pledge, dated April 30, 1998, with respect to the
pledge to Credit Suisse First Boston of (i) 24 ordinary shares of the
capital stock of CDRJ Europe Holding Company B.V. by Jafra Cosmetics
International, Inc., and (ii) 40 ordinary shares of the capital stock
of CDRJ Latin America Holding B.V. by CDRJ North Atlantic (Lux) Sarl.*
4.18 Form of 11 3/4% Senior Subordinated Note Due 2008 (Existing Note)
(contained in Exhibit 4.1)*.
4.19 Form of 11 3/4% Senior Subordinated Note Due 2008 (New Note)
(contained in Exhibit 4.1)*.
5.1 Opinion of Debevoise & Plimpton.
5.2 Opinion of Ritch, Heather Y Mueller, S.C.
5.3 Opinion of Bonn & Schmitt.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION OF DOCUMENT
------- -----------------------
<C> <S>
10.1 Indemnification Agreement, dated April 30, 1998, among CDRJ
Investments (Lux) S.A., CDRJ Acquisition Corporation, Jafra Cosmetics
International, S.A. de C.V., Clayton, Dubilier & Rice, Inc., Clayton,
Dubilier & Rice Fund V Limited Partnership.*
10.2 Consulting Agreement, dated April 30, 1998, by and among CDRJ
Investments (Lux) S.A., Jafra Cosmetics International, Inc. and Jafra
Cosmetics, S.A. de C.V., and Clayton, Dubilier & Rice, Inc.*
10.3 Form of Employment Agreement for Messrs. Clark, Rubio, Mason, Guirao
and Barrios.*
10.4 Amended and Restated Jafra Cosmetics International, Inc. Stock
Incentive Plan, as adopted September 3, 1998.
10.5 CDRJ Investments (Lux) S.A. Form of Management Stock Option Agreement.
10.6 Amended and Restated Stock Purchase Warrant, dated September 30, 1998,
by and between CDRJ Investments (Lux) S.A. and Jafra Cosmetics
International, Inc.
10.7 Registration and Participation Agreement, dated April 30, 1998, among
CDRJ Investments (Lux) S.A. and Clayton, Dubilier & Rice Fund V
Limited Partnership and the other parties thereto.*
10.8 CDRJ Investments (Lux) S.A. Form of Management Stock Subscription
Agreement.
10.9 CDRJ Investments (Lux) S.A. Form of Individual Investor Stock
Subscription Agreement.
12.1 Statements re: computation of ratios.*
21.1 Subsidiaries of the registrant.*
23.1 Consent of Deloitte & Touche LLP.
23.2 Consent of KPMG Peat Marwick LLP.
23.3 Consent of Debevoise & Plimpton (contained in Exhibit 5.1).
23.4 Consent of Ritch, Heather Y Mueller, S.C. (contained in Exhibit 5.2)
23.5 Consent of Bonn & Schmitt (contained in Exhibit 5.3)
25.1 Statement of Eligibility and Qualification Under the Trust Indenture
Act of 1939 (Form T-1) of State Street Bank and Trust Company.*
27.1 Financial Data Schedule.*
99.1 Form of Letter of Transmittal.
99.2 Form of Notice of Guaranteed Delivery.
99.3 Form of Exchange Agreement among Jafra Cosmetics International, Inc.,
Jafra Cosmetics International, S.A. de C.V. and State Street Bank and
Trust Company.
99.4 Instruction to Registered Holder and/or Book Entry Transfer
Participant from Beneficial Owner for Tender of 11 3/4% Senior
Subordinated Notes Due 2008 for registered 11 3/4% Senior Subordinated
Notes Due 2008.
</TABLE>
- --------
*Previously filed
<PAGE>
EXHIBIT 3.1
CDRJ Investments (Lux) S.A.
Societe anonyme
Siege social: Luxembourg
R.C. Luxembourg B 63.119
----------------------------------------------------------
Statuts coordonnes deposes au greffe du tribunal d'arrondissement de et a
Luxembourg, le
Pour mention afin de publication au Memorial, Recueil Special des Societes
et Associations.
Hesperange, le 29 septembre 1998.
<PAGE>
CDRJ Investments (Lux) S.A.
Societe anonyme
Siege social: Luxembourg
R.C. Luxembourg B 63.119
----------------------------------------------------------
constituee suivant acte recu par le notaire Gerard LECUIT, de residence a
Hesperange, en date du 22 janvier 1998, publie au Memorial, Recueil Special
C numero 346 du 14 mai 1998,
les statuts furent modifies a plusieurs reprises et en dernier lieu suivant
actes dudit notaire Gerard LECUIT, en date du 21 juillet 1998, et en date
du 2 septembre 1998,
<PAGE>
- 2 -
TITLE I.- DENOMINATION, REGISTERED OFFICE, OBJECT, DURATION
- -----------------------------------------------------------
ARTICLE 1
---------
There is established hereby a societe anonyme under the name of CDRJ
INVESTMENTS (LUX) S.A.
ARTICLE 2
---------
The registered office of the corporation is established in Luxembourg.
The registered office may be transferred to any other place in the
municipality by a decision of the board of directors.
If extraordinary political or economic events occur or are imminent, which
might interfere with the normal activity at the registered office, or with easy
communication between this office and abroad, the registered office may be
declared to have been transferred abroad provisionally until the complete
cessation of these abnormal circumstances.
Such decision, however, shall have no effect on the nationality of the
company. Such declaration of the transfer of the registered office shall be made
and brought to the attention of third parties by the organ of the corporation
which is best situated for this purpose under such circumstances.
ARTICLE 3
---------
The corporation is established for an unlimited period.
ARTICLE 4
---------
The corporation may carry out all transactions pertaining directly or
indirectly to the acquiring of participating interests in any enterprises in
whatever form and the administration, management, control and development of
those participating interests.
In particular, the corporation may use its funds for the establishment,
management, development and disposal of a
<PAGE>
- 3 -
portfolio consisting of any securities and patents of whatever origin, and
participate in the creation, development and control of any enterprise, the
acquisition, by way of investment, subscription, underwriting or option, of
securities and patents, to realize them by way of sale, transfer, exchange or
otherwise develop such securities and patents, grant to other companies or
enterprises any support, loans, advances or guarantees.
The corporation may also carry out any commercial, industrial or financial
operations, any transactions in respect of real estate or moveable property,
which the corporation may deem useful to the accomplishment of its purposes.
TITLE II.- CAPITAL, SHARES
--------------------------
ARTICLE 5
---------
The corporate capital is set at ONE MILLION FIVE HUNDRED SEVENTY-NINE
THOUSAND SIX US DOLLARS (1.579.006.-USD) represented by SEVEN HUNDRED EIGHTY
NINE THOUSAND FIVE HUNDRED AND THREE (789.503) class A shares with a par value
of TWO US DOLLARS (2.- USD) each.
The shares may be created at the owner's option in certificates
representing single shares or in certificates representing two or more shares.
The shares are in registered or bearer form.
The corporation may, to the extent and under the terms permitted by law,
purchase its own shares.
The corporate capital may be increased or reduced in compliance with the
legal requirements.
The authorized capital of the corporation is fixed at TWO MILLION FORTY
THOUSAND US DOLLARS (2.040.000.- USD) represented by one million twenty thousand
(1.020.000) Class A shares with a par value of TWO US DOLLARS (2.- USD) each.
<PAGE>
- 4 -
The authorized and subscribed capital of the corporation may be increased
or reduced by a decision of the general meeting of shareholders, voting with the
same quorum as for an amendment of the articles of association.
The board of directors may, during a period of five years from the date of
27.4.1998, increase the subscribed capital within the limits of the authorized
capital. Such increase may be subscribed for and issued in the form of shares
with or without an issue premium, as the board of directors shall determine. The
board of directors is specifically authorized to proceed to such issues without
reserving for the then existing shareholders a preferential right to subscribe
the shares to be issued.
The board of directors may delegate to any duly authorized person, the duty
of accepting subscriptions and receiving payment for shares representing part or
all of such increased amounts of capital.
After each increase in the subscribed capital performed in the legally
required form by the board of directors, the present article will be adapted to
this modification.
Any transfer or proposed transfer of any of the shares of the corporation
shall be subject to the prior approval of the board of directors of the
corporation, provided that the board of directors shall authorize such transfer
unless it determines that such transfer would be in violation of a then existing
restriction on the transfer of such shares which has been agreed with the owner
of such shares or his predecessor in interest and has been brought to the
attention of the board of directors. If the board of directors determines that a
proposed transfer would be in violation of such a restriction it shall refuse to
approve the transfer (it being understood that such a refusal must not result
in a situation where a shareholder of the corporation who wishes to sell his
shares to a party who has made a bona fide offer to purchase such shares is
---- ----
forced to continue holding such shares for an extended period of time) and shall
notify the grounds for its refusal to the shareholder seeking to effect the
transfer.
The board of directors may delegate to any committee formed by the board of
directors the responsibility for approving or refusing to approve proposed share
transfers as contemplated by the preceding paragraph of this article 5.
Any attempt to transfer shares of the corporation without the prior
approval of the board of directors (or such committee) shall be of no legal
effect. In no event shall a share transfer be recorded in the share register of
the corporation unless and until it has been approved by the board of directors
(or by such committee).
TITLE III.- MANAGEMENT
----------------------
ARTICLE 6
---------
The corporation is managed by a board of directors composed of at least
three members, either shareholders or not, who are appointed for a period not
exceeding six years by the general meeting of shareholders which may at any time
remove them.
The number of directors, their term and their remuneration are fixed by the
general meeting of the shareholders.
<PAGE>
- 5 -
ARTICLE 7
---------
The board of directors will elect from among its members a chairman.
The board of directors convenes upon call by the chairman, as often as the
interest of the corporation so requires. It must be convened each time two
directors so request.
The board can only validly debate and take decisions, if the majority of
its members is present or represented, proxies between directors being permitted
with the restriction that every director can represent only one of his
colleagues.
The directors may cast their vote on the points of the agenda by letter,
cable, telex or telefax, confirmed by letter.
Resolutions in writing approved and signed by all directors shall have the
same effect as resolutions voted at the director's meetings.
ARTICLE 8
---------
The board of directors is invested with the broadest powers to perform all
acts of administration and disposition in compliance with the corporate object.
All powers not expressly reserved by law or by the present articles of
association to the general meeting of shareholders fall within the competence of
the board of directors. The board of directors may pay interim dividends, in
compliance with the legal requirements.
ARTICLE 9
---------
The corporation will be bound in any circumstances by the single signature
of one director.
<PAGE>
- 6 -
ARTICLE 10
----------
The board of directors may designate an executive committee (comite
executif), an advisory committee (comite consultatif) and one or more other
committees, and in addition may give special powers relating to the daily
management of all or part of the business of the corporation to one or more
proxyholders (fondes de pouvoir). Any such proxyholder shall not be required to
be a director or a shareholder. The giving of such special powers to a member
of the board of directors is subject to the prior authorization of a general
meeting of the shareholders.
Each committee designated by the board of directors shall consist of such
number of directors as from time to time may be fixed by the board of
directors, and, for the committees other than the executive committee, may also
include individuals who are not directors. The board of directors may also
designate one or more directors as alternate members of any such committee, who
may replace any absent or disqualified member or members at any meeting of such
committee. Thereafter, members (and alternate members, if any) of each such
committee may be designated by the board of directors. Any such committee may
be abolished or re-designated from time to time by the board of directors. Each
member (and each alternate member) of any such committee shall hold office
until his or her successor shall have been designated or until his or her
earlier death, resignation or removal.
During the intervals between the meetings of the board of directors, the
executive committee, except as otherwise provided in this article, shall have
and may exercise all the powers and authority of the board of directors in the
management of the property, affairs and business of the corporation, with the
exception of the following actions which shall require a decision by the board
of directors itself: (i) the issuance to third parties of all or any part of
the authorized but unissued shares of the corporation, (ii) the payment of an
interim dividend (acompte sur dividendes) and the submission to the annual
shareholders meeting of a proposal regarding the payment of a dividend, (iii)
the finalization of the management report (rapport de gestion) to be submitted
by the board of directors to the annual shareholders meeting, (iv) the calling
of meetings of the shareholders and (v) the postponement of a shareholders
meeting (in the circumstances contemplated by article 67 (5) and (6) of the
Coordinated Law on Commercial Companies of the Grand Duchy of Luxembourg).
The advisory committee shall perform such duties as may be assigned to it
from time to time by the board of directors, and shall be composed of officers
holding the following titles:
(i) a "President" and "Chief Operating Officer";
(ii) a "Chief Executive Officer";
(iii) one or more "Executive Vice Presidents";
(iv) one or more "Vice Presidents";
(v) a "Secretary" and one or more "Assistant Secretaries";
(vi) a "Treasurer" and one or more "Assistant Treasurers";
(vii) "Chief Financial Officer"
The board of directors shall have all powers to create new
positions within the advisory committee as it may from time to
time deem appropriate.
Any other committee formed by the board of directors, except as otherwise
provided in this article, shall have and may exercise such powers of the board
of directors as may be provided by resolution or resolutions of the board of
directors. The executive committee, the advisory committee and any other
committee formed by the board of directors shall not have the power or
authority:
a) to approve or adopt any action or matter expressly required by the
applicable laws of the Grand-Duchy of Luxembourg to be submitted to the
stockholders for approval; or
b) adopt, amend or repeal any provision of the articles of association of
the corporation.
Each such committee may fix its own rules of procedure and may meet at such
place (within or outside the Grand-Duchy of Luxembourg), at such time and upon
such notice, if any, as it shall determine from time to time. Each such
committee may keep minutes of its proceedings and shall report such proceedings
to the board of directors at the meeting of the board of directors next
following any such proceedings.
Except as may be otherwise provided in the resolution creating such
committee, at all meetings of any committee the presence of members (or
alternate members) constituting a majority of the total membership of such
committee shall constitute a quorum for the transaction of business. The act of
the majority of the members present at any meeting at which a quorum is present
shall be the act of such committee. Any action required or permitted to be
taken at any meeting of any such committee may be taken without a meeting, if
all members of such committee shall consent to such action in writing and such
writing or writings are filed with the minutes of the proceedings of the
committee. The members of any such committee shall act only as a committee, and
the individual members of such committee shall have no power as such.
Members of any committee designated by the board of directors may
participate in a meeting of such committee by means of conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other, and participation in a meeting pursuant to
this provision shall constitute presence in person at such meeting.
In the event of the absence or disqualification of a member of any
committee, the member or members thereof present at any meeting and not
disqualified from voting, whether or not he, she or they constitute a quorum,
may unanimously appoint another member of the board of directors to act at the
meeting in the place of any such absent or disqualified member.
Any member (and any alternate member) of any committee may resign at any
time by delivering a written notice of resignation, signed by such member, to
the chairman of the board of directors. Unless otherwise specified therein, such
resignation shall take effect upon delivery.
Any member (and any alternate member) of any committee may be removed from
his or her position as a member (or alternate member, as the case may be) of
such committee at any time, either for or without cause, by resolution adopted
by a majority of the whole board of directors.
If any vacancy shall occur in any committee, by reason of disqualification,
death, resignation, removal or otherwise, the remaining members (and any
alternate members) shall continue to act, and any such vacancy may be filled by
the board of directors.
ARTICLE 11
----------
The corporation shall indemnify any director, any member of any committee
designated by the board of directors and any fonde de pouvoir and his or her
heirs, executors and administrators, against expenses (including attorneys'
fees) judgments and fines in connection with any action, suit or proceeding or
appeal therefrom, to which he or she may be made a party by reason of his or her
being or having been a director or member of any committee designated by the
board of directors or fonde de pouvoir of the corporation,
<PAGE>
- 7 -
or, at the request of the corporation, of any other corporation partnership,
joint venture, trust or other enterprise in which the corporation holds a direct
or indirect ownership interest or of which the corporation is a direct or
indirect creditor and by which he or she is not entitled to be indemnified,
provided that he or she acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding had no reasonable cause to
believe his or her conduct was unlawful; and in the event of a settlement, such
indemnification shall be provided for all expenses incurred and amounts paid in
connection with such settlement unless the corporation is advised by its legal
counsel that the person to be indemnified did not meet the above-indicated
standard of conduct; except that in the case of an action or suit brought by
the corporation against such a director, committee member or fonde de pouvoir to
procure a judgment in favor of the corporation (1) such indemnification shall be
-
limited to expenses (including attorneys' fees) actually and reasonably incurred
by such person in the defense or settlement of such action or suit, and (2)
-
notwithstanding any other provisions hereof no indemnification shall be made in
respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable to the corporation unless and only to the extent that the
Luxembourg Courts or the courts in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability but in
view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such costs and expenses as the Luxembourg Court or
such other court may deem legal and proper.
The corporation may purchase and maintain insurance on behalf of any person
who is or was or has agreed to become a director, committee member or fonde de
pouvoir of the corporation, or is or was serving at the request of the
corporation in any equivalent position in any such other corporation,
partnership, joint venture, trust or other enterprise, against any liability
asserted against him and incurred by him or on his behalf in any such capacity,
or arising out of his status as such, whether or not the corporation would have
the power to indemnify him against such liability under the provisions of this
article, provided that such insurance is available on acceptable terms, which
--------
determination shall be made by a vote of a majority of the entire board of
directors.
If this article or any portion hereof shall be invalidated on any ground by
any court of competent jurisdiction, then the corporation shall nevertheless
indemnify each such director, committee member or fonde de pouvoir and may
indemnify each employee or agent of the corporation as to costs, charges and
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement with respect to any action, suit or proceeding, whether civil,
criminal, administration or investigative, including an action by or in the
right of the corporation, to the fullest extent permitted by any applicable
portion of this article that shall not have been invalidated and to the fullest
extent permitted by applicable law.
Subject to the applicable provisions of Luxembourg law and in particular
Section 59 of the Luxembourg Law on Commercial Companies, no director, committee
member or fonde de pouvoir of the corporation shall be liable to the corporation
or its stockholders for his actions or omissions when performing his duties as a
director, committee member or fonde de pouvoir, provided that nothing contained
--------
in these articles of association shall eliminate or limit the liability of a
director, committee member or fonde de pouvoir (i) for any breach of his duty of
-
loyalty to the corporation or its stockholders, (ii) for acts or omissions not
--
in good faith or which involves intentional misconduct or a knowing violation of
the law, or (iii) for any transaction from which the director derived an
---
improper personal benefit.
ARTICLE 12
----------
The board of directors or the statutory auditor may convene other
shareholder meetings each time the interests of the company so request. Such
meetings must be convened each time shareholders representing at least one fifth
of the subscribed capital request it by writing with an indication of the
agenda.
ARTICLE 13
----------
Any litigations involving the corporation either as plaintiff or as
defendant, will be handled in the name of the corporation by the board of
directors, represented by its chairman or by the director delegated for its
purpose.
TITLE IV.- SUPERVISION
----------------------
ARTICLE 14
----------
The corporation is supervised by one or several statutory auditors,
appointed by the general meeting of shareholders which will fix their number and
their remuneration, as well as the term of their office, which must not exceed
six years.
<PAGE>
- 8 -
TITLE V.- GENERAL MEETING
-------------------------
ARTICLE 15
----------
The annual meeting will be held in the commune of the registered office at
the place specified in the convening notices on the second Tuesday of June at 11
a.m. and the first time in the year 1999.
If such day is a legal holiday, the general meeting will be held on the
next following business day.
TITLE VI.- ACOUNTING YEAR, ALLOCATION OF PROFITS
------------------------------------------------
ARTICLE 16
----------
The accounting year of the corporation shall begin on the lst of January
and shall terminate on the 31st of December of each year, with the exception of
the first accounting year, which shall begin on the date of the formation of the
corporation and shall terminate on December 31st, 1998.
ARTICLE 17
----------
After deduction of any and all of the expenses of the corporation and the
amortizations, the credit balance represents the net profits of the corporation.
Of the net profits, five percent (5%) shall be appropriated for the legal
reserve; this deduction ceases to be compulsory when the reserve amounts to ten
percent (10%) of the capital of corporation, but it must be resumed until the
reserve is entirely reconstituted if, at any time, for any reason whatsoever, it
has been touched.
The balance is at the disposal of the general meeting.
TITLE VII.- DISSOLUTION, LIQUIDATION
------------------------------------
ARTICLE 18
----------
The corporation may be dissolved by a resolution of the general meeting of
shareholders. The liquidation will be carried out by one or more liquidators,
physical or legal
<PAGE>
- 9 -
persons, appointed by the general meeting of shareholders which will specify
their powers and fix their remunerations.
TITLE VIII.- GENERAL PROVISIONS
-------------------------------
ARTICLE 19
----------
All matters not governed by these articles of association are to be
construed in accordance with the law of August 10th 1915 on commercial companies
and the amendments hereto.
FOLLOWS THE FRENCH TRANSLATION OF THE FOREGOING TEXT: IN CASE OF DISCREPANCIES
- ------------------------------------------------------------------------------
BETWEEN THE ENGLISH AND THE FRENCH TEXT, THE ENGLISH VERSION WILL BE BINDING
- ----------------------------------------------------------------------------
SUIT LA TRADUCTION FRANCAISE DU TEXTE QUI PRECEDE:
--------------------------------------------------
EN CAS DE DIVERGENCE ENTRE LE TEXTE ANGLAIS ET
----------------------------------------------
LE TEXTE FRANCAIS LE TEXTE ANGLAIS FERA FOI
-------------------------------------------
TITRE IER: DENOMINATION, SIEGE SOCIAL, OBJET, DUREE
---------------------------------------------------
ARTICLE 1er
-----------
Il est forme une societe anonyme sous la denomination de CDRJ INVESTMENTS
(LUX) S.A.
ARTICLE 2
---------
Le siege de la societe est etabli a Luxembourg.
Il pourra etre transfere dans tout autre lieu de la commune par simple
decision du conseil d'administration.
Au cas ou des evenements extraordinaires d'ordre politique ou economique,
de nature a compromettre l'activite normale au siege social ou la communication
aisee de ce siege avec l'etranger se produiront ou seront imminents, le siege
social pourra etre declare transfere provisoirement a l'etranger, jusqu'a
cessation complete de ces circonstances anormales.
<PAGE>
- 10 -
Une telle decision n'aura pas d'effet sur la nationalite de la societe. La
declaration de transfert du siege sera faite et portee a la connaissance des
tiers par l'organe de la societe qui se trouvera le mieux place a cet effet dans
les circonstances donnees.
ARTICLE 3
---------
La societe est constitutee pour une duree illimitee.
ARTICLE 4
---------
La societe a pour objet toutes les operations se rapportant directement ou
indirectement a la prise de participations sous quelque forme que ce soit, dans
toute entreprise, ainsi que l'administration, la gestion, le controle et le
developpement de ces participations.
Elle pourra notamment employer ses fonds a la creation, a la gestion, a la
mise en valeur et a la liquidation d'un portefeuille se composant de tous titres
et brevets de toute origine, participer a la creation, au developpement et au
controle de toute entreprise, acquerir par voie d'apport, de souscription, de
prise ferme ou d'option d'achat et de toute autre maniere, tous titres et
brevets, les realiser par voie de vente, de cession, d'echange ou autrement,
faire mettre en valeur ces titres et brevets, accorder a d'autres societes ou
entreprises tous concours, prets, avances ou garanties.
La societe pourra aussi accomplir toutes operations commerciales,
industrielles ou financieres, ainsi que tous transferts de propriete immobiliers
ou mobiliers.
TITRE II: CAPITAL, ACTIONS
--------------------------
ARTICLE 5
---------
Le capital social est fixe a UN MILLION CINQ CENT SOIXANTE-DIX-NEUF MILLE
SIX US DOLLARS (1.579.006.- USD) represente par SEPT CENT QUATRE-VINGT-NEUF
MILLE CINQ CENT
<PAGE>
- 11 -
TROIS (789.503) actions de categorie A d'une valeur nominale de DEUX US DOLLARS
(2.- USD) chacune.
Les actions de la societe peuvent etre creees au choix du proprietaire en
titres unitaires ou en certificats representatifs de plusieurs actions.
Les titres sont nominatifs ou au porteur.
La societe peut proceder au rachat de ses propres actions, sous les
conditions prevues par la loi.
Le capital souscrit pourra etre augmente ou reduit dans les conditions
1egales requises.
Le capital autorise est fixe a DEUX MILLIONS QUARANTE MILLE US DOLLARS
(2.040.000.- USD) represente par un million vingt mille (1.020.000) actions de
categorie A d'une valeur nominale de DEUX US DOLLARS (2.- USD) chacune.
Le capital autorise et le capital souscrit de la societe peuvent etre
augmentes ou reduits par decision de l'assemblee generale des actionnaires
statuant comme en matiere de modification des statuts.
En outre, le conseil d'administration est, pendant une periode de cinq ans
a partir du 27.4.1998, autorise a augmenter en une ou plusieurs fois le capital
souscrit a l'interieur des limites du capital autorise. Ces augmentations de
capital peuvent etre souscrites et emises sous forme d'actions avec ou sans
prime d'emission ainsi qu'il sera determine par le conseil d'administration. Le
conseil d'administration est specialement autorise a proceder a de telles
emissions sans reserver aux actionnaires anterieurs un droit preferentiel de
souscription des actions a emettre.
Le conseil d'administration peut deleguer toute autre personne dument
autorisee, pour recueillir les souscriptions
<PAGE>
- 12 -
et recevoir paiement du prix des actions representant tout ou partie de cette
augmentation de capital.
Apres chaque augmentation du capital souscrit realise par le conseil
d'administration conformement aux procedures legales, il fera adapter le present
article pour tenir compte de cette modification.
TITRE III: ADMINISTRATION
-------------------------
ARTICLE 6
---------
La societe est administree par un conseil compose de trois membres au
moins, associes ou non, nommes pour un terme qui ne peut exceder six annees, par
l'assemblee generale des actionnaires, et toujours revocables par elle.
Le nombre des administrateurs ainsi que leur remuneration et la duree de
leur mandat sont fixes par l'assemblee generale de la societe.
ARTICLE 7
---------
Le conseil d'administration choisit parmi ses membres un president.
Le conseil d'administration se reunit sur la convocation du president,
aussi souvent que l'interet de la societe l'exige. Il doit etre convoque chaque
fois que deux administrateurs le demandent.
Le conseil ne peut valablement deliberer et statuer que si la majorite de
ses membres est presente ou representee. le mandat entre administrateurs etant
admis sans qu'un administrateur ne puisse representer plus d'un de ses
collegues.
Les administrateurs peuvent emettre leur vote sur les questions a l'ordre
du jour par lettre, telegramme, telex ou telefax, ces trois derniers etant a
confirmer par ecrit.
Une decision prise par ecrit, approuvee et signee par tous les
administrateurs, produira effet au meme titre
<PAGE>
- 13 -
qu'une decision prise a une reunion du conseil d'administration.
ARTICLE 8
---------
Le conseil d'administration est investi des pouvoirs les plus etendus pour
faire tous actes d'administration et de disposition qui rentrent dans l'objet
social.
Il a dans sa competence tous les actes qui ne sont pas reserves
expressement par la loi et les statuts a l'assemblee generale. Il est autorise a
verser des acomptes sur dividendes, aux conditions prevues par la loi.
ARTICLE 9
---------
La societe sera engagee en toutes circonstances par la seule signature d'un
administrateur.
ARTICLE 10
----------
Le conseil d'administration pourra designer un comite executif, un comite
consultatif et un ou plusieurs autres comites, et egalement donner des pouvoirs
speciaux relatifs a la gestion journaliere de tout ou partie des affaires de la
societe a un ou plusieurs fondes de pouvoirs. Un fonde de pouvoirs ne doit pas
etre necessairement un administrateur ou un actionnaire. La delegation de ces
pouvoirs speciaux a un membre du conseil d'administration est subordonnee a
l'autorisation prealable d'une assemblee generale des actionnaires.
Chaque comite designe par le conseil d'administration comportera un nombre
de membres fixe de temps a autre par le conseil d'administration et, pour les
comites autres que le comite executif pourra comporter des personnes qui ne
seront pas des administrateurs. Le conseil d'administration pourra aussi
designer un ou plusieurs administrateurs comme membres suppleants de ces
comites, qui pourront remplacer un ou des membres absents ou dechus a toute
reunion de ces comites. Par la suite, les membres (et les membres suppleants le
cas echeant) de ces comites pourront etre designes par le conseil
d'administration. Chacun de ces comites pourra etre supprime ou re-designe de
temps a autre par le conseil d'administration. Chaque membre (titulaire et
suppleant) de ces comites devra rester en fonction jusqu'a ce que son
successeur soit designe ou jusqu'a la date de son deces, de sa demission ou de
son renvoi si elle est anterieure.
Entre les reunions du conseil d'administration, sauf lorsque le present
article stipule autrement, le comite executif detiendra et pourra exercer tous
les pouvoirs et l'autorite du conseil d'administration en ce qui concerne la
gestion des biens, des affaires et de l'activite de la societe, a l'exception
des decisions suivantes qui necessiteront une decision du conseil
d'administration lui-meme: (i) l'emission en faveur de tierces parties de tout
ou partie des actions autorisees mais non emises de la societe, (ii) le paiement
d'un acompte sur dividendes et la soumission a l'assemblee generale annuelle des
actionnaires d'une proposition concernant le versement d'un dividende, (iii) la
mise au point du rapport de gestion qui doit etre soumis par le conseil
d'administration a l'assemblee generale annuelle des actionnaires, (iv) la
convocation des assemblees d'actionnaires et (v) la remise d'une assemblee des
actionnaires (dans les cas prevus a l'article 67 (5) et (6) de la loi coordonnee
sur les societes commerciales du Grand-Duche de Luxembourg).
Le comite consultatif mettra en oeuvre les missions qui lui seront confiees
de temps a autre par le conseil d'administration, et comprendra des membres
ayant les titres suivants:
(i) un "President" et "Chief Operating Officer";
(ii) un "Chief Executive Officer";
(iii) un ou plusieurs "Executive Vice Presidents";
(iv) un ou plusieurs "Vice Presidents";
(v) un "Secretary" et un ou plusieurs "Assistant Secretaries";
(vi) un "Treasurer" et un ou plusieurs "Assistant Treasurers".
Tout autre comite forme par le conseil d'administration, sous reserve des
exceptions stipulees au present article, aura et pourra exercer les pouvoirs du
conseil d'administration conformement aux dispositions de la ou des resolutions
du conseil d'administration. Ni le comite executif, ni le comite consultatif,
ni un autre comite forme par le conseil d'administration n'aura le pouvoir ou
l'autorite:
a) d'approuver ou adopter une decision ou une action reservee par le droit
applicable au Grand-Duche de Luxembourg a l'approbation des actionnaires; ou
b) d'adopter, de modifier ou d'abroger une disposition des statuts de la
societe.
Chacun de ces comites pourra fixer ses propres reqles de procedure et
pourra se reunir en n'importe quel lieu (dans le Grand-Duche de Luxembourg ou
ailleurs), a l'heure et dans un delai, si delai il y a, qu'il pourra decider de
temps a autre. Chacun de ces comites pourra etablir des proces-verbaux de ses
deliberations et fera part de ses deliberations au conseil d'administration lors
de la premiere reunion du conseil d'administration qui suivra ces deliberations.
Sauf lorsque la resolution creant ce comite stipule autrement, le quorum
requis pour la prise de decision a toutes les reunions des comites sera de la
majorite de tous les membres de ces comites, que les personnes presentes soient
membres titulaires ou suppleants. Une decision sera valablement prise par un
tel comite lorsqu'elle est prise par une majorite des membres presents a une
reunion, lorsque le quorum est reuni. Toute decision qui doit etre ou pourra
etre prise a une reunion d'un tel comite pourra etre prise sans qu'une reunion
n'ait lieu, si tous les membres de ce comite consentent par ecrit a cette
decision, et si ces consentements ecrits sont attaches au proces-verbal des
reunions de ce comite. Les membres de ces comites devront agir seulement dans
le cadre du comite, et les personnes qui sont les membres de ces comites
n'auront aucun pouvoir individuel en tant que tels.
Les membres des comites designes par le conseil d'administration pourront
participer a des reunions de ces comites par le biais d'une conference
telephonique ou autre equipement de communication similaire au moyen duquel les
personnes participant a une reunion peuvent s'entendre les uns les autres, et
la participation a une reunion conformement a cette disposition sera comptee
comme l'equivalent d'une presence physique a la reunion.
En l'absence d'un des membres d'un comite, ou si ce membre est dechu, le ou
les membres de ce comite qui sont presents a une reunion et qui peuvent
valablement y prendre part au vote, que le quorum requis soit reuni ou non,
pourront par decision unanime nommer un autre membre du conseil d'administration
pour agir a la place du membre absent ou dechu lors de cette reunion.
Tout membre (titulaire ou suppleant) d'un comite pourra demissionner a
toute epoque en communiquant une declaration ecrite de demission, signee par ce
membre, au president du conseil d'administration. Sauf si cette declaration
stipule autrement, la demission prendra effet a compter de la reception de la
declaration.
Tout membre (titulaire ou suppleant) d'un comite peut etre renvoye de son
poste de membre (titulaire ou suppleant selon le cas) de ce comite a toute
epoque, que ce soit avec ou sans un motif particulier, par une resolution
adoptee par une majorite de tout le conseil d'administration.
Si un poste de membre d'un comite n'est plus pourvu, en raison d'une
decheance de membre, d'un deces, d'une demission, d'un renvoi ou autre, les
membres restants (et tous les membres suppleants) pourront continuer a remplir
leurs fonctions, et ce poste pourra etre pourvu par le conseil
d'administration.
<PAGE>
- 14 -
ARTICLE 11
----------
La societe indemnisera tout administrateur, tout membre du comite designe
par le conseil d'administration et tout fonde de pouvoirs et leurs heritiers,
executeurs testamentaires et administrateurs de biens pour tous frais
raisonnables qu'ils auront encourus par suite de leur comparution en tant que
personnes parties au litige dans des actions en justice, des proces ou des
poursuites judiciaires de par leurs fonctions actuelles ou anciennes
d'administrateur ou de membre du comite designe par le conseil d'administration
ou de fonde de pouvoirs de la societe, ou a la demande de la societe, de toute
autre societe dans laquelle la societe est actionnaire ou creancier directment
or indirectment et qui ne lui a pas octroye un droit a indemnisation, a
condition qu'il ait agi de bonne foi et de maniere telle qu'il pouvait
raisonnablement croire etre dans le meilleur interet de la societe ou non
opposee a celui-ci; et, par rapport a toute action ou procedure penale, qu'ils
n'aient pas eu de motif raisonnable de croire que sa conduite etait illegale;
et, en cas d'arrangement transactionnel, une telle indemnisation sera octroyee
pour des situations couvertes par un tel arrangement transactionnel a moins que
la societe ne soit informee par son conseiller juridique que la personne a
indemniser ne s'etait pas conformee aux principes de conduite ci-avant indiques.
ARTICLE 12
----------
Le conseil d'administration ou le commissaire aux comptes peut convoquer
d'autres assemblees chaque fois que l'interet de la societe le commande. De
telles assemblees
<PAGE>
- 15 -
doivent etre convoquees si des actionnaires representant au moins un cinquieme
du capital social les en requierent par une demande ecrite contenant l'ordre du
jour.
ARTICLE 13
----------
Les actions judiciaires, tant en demandant qu'en defendant, sont suivies au
nom de la societe par le conseil d'administration, poursuites et diligences de
son president ou d'un administrateur delegue a ces fins.
TITRE IV: SURVEILLANCE
----------------------
ARTICLE 14
----------
La societe est surveillee par un ou plusieurs commissaires nommes par
l'assemblee generale, qui fixe leur nombre et leur remuneration, ainsi que la
duree de leur mandat, qui ne peut exceder six annees.
TITRE V: ASSEMBLEE GENERALE
---------------------------
ARTICLE 15
----------
L'assemblee generale annuelle se reunit dans la commune du siege social, a
l'endroit indique dans les convocations, le deuxieme mardi du mois de juin a
11.00 heures et pour la premiere fois en 1999.
Si ce jour est un jour ferie 1egal, l'assemblee generale a lieu le premier
jour ouvrable suivant.
TITRE VI: ANNEE SOCIALE, REPARTITION DES BENEFICES
--------------------------------------------------
ARTICLE 16
----------
L'annee sociale commence le 1er janvier et finit le 31 decembre de chaque
annee. Exceptionnellement, le premier exercice social comprendra tout le temps a
courir de la constitution de la societe jusqu'au 31 decembre 1998.
ARTICLE 17
----------
L'excedent favorable du bilan, defalcation faite des charges sociales et
des amortissements, forme le benefice net de la societe. Sur ce benefice, il est
preleve cinq pour
<PAGE>
- 16 -
cent (5%) pour la formation du fonds de reserve 1egale; ce prelevement cesse
d'etre obligatoire lorsque la reserve aura atteint le dixieme du capital social,
mais devrait toutefois etre repris jusqu'a entiere reconstitution, si a un
moment donne et pour quelque cause que ce soit, le fonds de reserve avait ete
entame.
Le solde est a la disposition de l'assemblee generale.
TITRE VII: DISSOLUTION, LIQUIDATION
-----------------------------------
ARTICLE 18
----------
La societe peut etre dissoute par decision de l'assemblee generale. Lors de
la dissolution de la societe, la liquidation s'effectuera par les soins d'un ou
de plusieurs liquidateurs, personnes physiques ou morales, nommes par
l'assemblee generale qui determine leurs pouvoirs et leurs emoluments.
TITRE VIII: DISPOSITIONS GENERALES
----------------------------------
ARTICLE 19
----------
Pour tous les points non specifies dans les presents statuts, les parties
se referent et se soumettent aux dispositions de la loi luxembourgeoise du 10
aout 1915 sur les societes commerciales et de ses lois modificatives.
POUR COPIE CONFORME DES STATUTS COORDONNES
HESPERANGE, LE 12 AUOT 1998.
<PAGE>
EXHIBIT 3.6
INSTRUMENTO VEINTITRES MIL SETECIENTOS UNO.
LIBRO CUATROCIENTOS SETENTA Y SIETE.
EN MEXICO, DISTRITO FEDERAL, a los cuatro dias del mes de diciembre de mil
novecientos noventa y cinco, CARLOS ALEJANDRO DURAN LOERA, Titular de la Notaria
numero ONCE, del Distrito Federal, hago constar:
EL CONTRATO DE SOCIEDAD MERCANTIL EN FORMA DE ANONIMA DE CAPITAL VARIABLE,
que otorgan "GRUPO JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
por el senor MICHAEL ANTHONY DIGREGORIO DIMAIO Y "PRODENOB", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, representada por la senora PATRICIA ANGELINA RIOS DEL PERAL;
que se consignan al tenor de los Estatutos que siguen al permiso de la
Secretaria de Relaciones Exteriores que se agrega al apendice en el legajo
marcado con el numero de este instrumento bajo la letra "A", documento que copio
enseguida y es del tenor literal siguiente:
PERMISO DE LA SECRETARIA DE RELACIONES EXTERIORES
"Al margen superior izquierdo: Un Sello con el Escudo Nacional. Fuera del
Sello: SECRETARIA DE RELACIONES EXTERIORES - MEXICO. Al margen superior
derecho: PERMISO 09024485 - EXPEDIENTE 9509023626 - FOLIO 41956. Al centro: En
atencion a la solicitud presentada por el C. LUIS A. CERVANTES MUNIZ esta
Secretaria concede el permiso para constituir una SA DE CV bajo la
<PAGE>
denominacion COMERCIALIZADORA JAFRA, SA DE CV. Este permiso, quedara
condicionado a que en la escritura constitutiva se inserte la clausula de
exclusion de extranjeros prevista en el Articulo 30 o en el convenio que senala
el Articulo 31, ambos del Reglamento de la Ley Promover la Inversion Mexicana y
Regular la Inversion Extranjera. El Notario o Corredor Publico ante quien se
haga uso de este permiso, debera dar aviso a la Secretaria de Relaciones
Exteriores dentro de los 90 dias habiles a partir de la fecha de autorizacion de
la escritura Publica correspondiente. Lo anterior se comunica con fundamento en
los Articulos 27, Fraccion I, de la Constitucion Politica de los Estados Unidos
Mexicanos, 15 de la Ley de Inversion Extranjera y en los terminos del Articulo
28 Fraccion V de la Ley Organica de la Administracion Publica Federal. Este
permiso dejara de surtir efectos si no se hace uso del mismo dentro de los 90
dias habiles siguientes a la fecha de su expedicion, y se otorga sin perjuicio
de lo dispuesto por el articulo 91 de la Ley de Fomento y Proteccion de la
Propiedad Industrial. TLATELOLCO D.F., a 10 de Agosto de 1995. SUFRAGIO
EFECTIVO. NO REELECCION - EL DIRECTOR DE PERMISOS DE ART. 27 CONSTITUCIONAL -
LIC. CRISTINA ALCALA ROSETE. Rubrica. - Un sello fechador. - P.A-1".
EXPUESTO LO QUE ANTECEDE, los comparecientes otorgan los siguientes:
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ESTATUTOS
---------
NOMBRE, DOMICILIO, OBJETO Y DURACION
------------------------------------
ARTICULO I. La denominacion de la sociedad es "COMERCIALIZADORA
JAFRA" y debera ir siempre seguida de las palabras "SOCIEDAD ANONIMA DE CAPITAL
VARIABLE" o de su abreviatura "S.A. de C.V.".
ARTICULO II. El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucursales en cualquier otra
parte de la Republica Mexicana o del extranjero y someterse a domicilios
convencionales.
ARTICULO III. La sociedad tendra por objeto:
a) El ejercicio del comercio en general, incluyendo la manufactura,
comercio y distribucion de toda clase de articulos para el cuidado e higiene
personal, para la salud y belleza, productos de tocador, perfumes y cosmeticos,
articulos de joyeria, bisuteria y adorno personal, asi como cualesquiera otros
productos relacionados con el cuidado, arreglo y vestido de la persona;
b) Fabricar, exportar, importar, adquirir, enajenar, arrendar,
subarrendar, dar y tomar en comodato todo tipo de mercaderias, equipos,
maquinaria, implementos y efectos necesarios para realizar las actividades
descritas en el parrafo a) que antecede, asi como para la realizacion de
cualquier otra actividad mercantil;
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c) Adquirir acciones, partes sociales, certificados de participacion
y constancias de Interes que acrediten inversion en cualquier tipo de empresa,
sociedad, organizacion y asociacion, tanto del pais como del extranjero;
d) Vender, transferir, entregar y en cualquier otra forma permitida
por la ley negociar con acciones, partes sociales, certificados de participacion
y constancias de interes que acrediten inversion en cualquier tipo de empresas,
sociedad organizacion y asociacion, tanto del pais como del extranjero;
e) Recibir de otras sociedades y personas, asi como proporcionar a
otras sociedades y personas todo tipo de servicios, tales como servicios
administrativos, financieros, legales, de mercadeo y de tesoreria, incluyendo la
preparacion de reportes y estados financieros, presupuestos, programas y
manuales de operacion, asi como la evaluacion de resultados operacionales,
evaluacion de productividad y posibilidades de financiamiento, incluyendo
analisis de disponibilidad de capital;
f) Establecer, arrendar, subarrendar, operar y poseer en cualquier
forma permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas,
almacenes, tiendas y demas establecimientos necesarios para la realizacion del
objeto social, asi como adquirir, enajenar y gravar toda clase de negociaciones
industriales y comerciales; incluyendo acciones, participaciones e instrumentos
por ellas emitidos;
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g) Solicitar, obtener, registrar, comprar, utilizar, ceder o en
cualquier otra forma disponer y adquirir marcas, nombres comerciales, derechos
de autor, patentes y derechos sobre invenciones y procesos;
h) Establecer sucursales, subsidiaries, agencias y oficinas de
representacion en Mexico y en el extranjero;
i) Representar y actuar como agente, en la Republica Mexicana y en el
extranjero, de empresas industriales, comerciales y de servicios, sean
nacionales o extranjeras;
j) Adquirir, poseer, arrendar, subarrendar, comprar, vender,
permutar, donar y negociar en cualquier otra forma permitida por la ley con
bienes muebles, inmuebles, incluyendo la adquisicion, establecimiento y
operacion de laboratorios de investigacion;
k) Proporcionar toda clase de servicios tecnicos, administrativos, de
asesoria y de supervision a empresas industriales y comerciales, tanto en Mexico
como en el extranjero, y recibir dichos servicios;
l) Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales;
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m) Dar y tomar dinero en prestamo con o sin garantias de cualquier
tipo, emitir bonos, obligaciones y demas titulos de credito con la supervision e
intervencion de las instituciones que en cada caso se requiera de acuerdo con la
ley;
n) Garantizar obligaciones de terceros; y
o) En general, realizar toda clase de actos y celebrar toda clase de
contratos, sean civiles o mercantiles, permitidos por la ley.
ARTICULO IV. La sociedad tendra duracion de CIENTO CINCUENTA anos
contados a partir de la fecha de su constituicion.
CAPITAL SOCIAL
--------------
ARTICULO V. El capital social es variable. El capital fijo sin
derecho a retiro es CINCUENTA MIL NUEVOS PESOS, MONEDA NACIONAL, representado
por CINCUENTA acciones ordinarias, nominativas, Serie "A" con valor nominal de
UN MIL NUEVOS PESOS, MONEDA NACIONAL, cada una. La parte variable del capital
no tiene limite y se creara, incrementara y reducira por resolucion de la
Asamblea General Ordinaria de Accionistas conforme a lo previsto en el articulo
VI (sexto romano) de estos estatutos sociales.
Corresponderan a la Serie "A" aquellas acciones representativas de la
parte fija del capital social.
Corresponderan a la Serie "B" aquellas acciones representativas de la
parte variable del capital social.
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En todo caso, la participacion de la inversion extranjera en el
capital de la sociedad habra de sujetarse a las disposiciones aplicables de la
Ley de Inversion Extranjera y su Reglamento.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitos establecidos
en el articulo ciento veinticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas acciones y estaran firmados por dos miembros del
Consejo de Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO VI. Cada aumento o reduccion del capital social fijo sera
decretado por Asamblea General Extraordinaria de Accionistas. Cada aumento o
reduccion del capital social en la parte variable sera decretado por Asamblea
General Ordinaria de Accionistas.
En los terminos del articulo ciento treinta y dos de la Ley General de
Sociedades Mercantiles, en el caso de aumento de capital los accionistas tendran
derecho preferente para suscribir las acciones representativas del aumento en
proporcion al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales de Accionistas en las que
se acuerde aumento de capital seran publicadas en el Diario Oficial de la
Federacion o en uno de los diarios de mayor circulacion del domicilio de la
sociedad.
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Ademas, las mencionadas resoluciones se notificaran a los accionistas
por medio de cartas que se enviaran por correo certificado con anterioridad a la
fecha de su publicacion, a las direcciones que apareceran inscritas en el Libro
de Registro de Acciones de la sociedad. En caso de que existan accionistas
domiciliados en el extranjero, dichas cartas se enviaran por correo aereo
certificado.
Los accionistas deberan ejercer su derecho preferente antes mencionado
dentro de los quince dias calendario siguientes a la fecha de publicacion de la
resolucion. Sin embargo, si la totalidad del capital social estuviere
representado en alguna Asamblea General que decretase incremento de capital, el
periodo de quince dias de calendario se computara a partir de la fecha de la
Asamblea General correspondiente y los accionistas se daran por notificados de
la resolucion desde la fecha de la Asamblea General, por lo que la publicacion y
notificacion de la resolucion de incremento de capital no seran necesarias.
ARTICULO VII. La sociedad podra adquirir las acciones representativas
de su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extraordinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asamblea General Extraordinaria de Accionistas o, por delegacion
especifica de esta, el Consejo de Administracion, sujetandose al monto maximo de
utilidades repartibles que habra de ser
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fijado por la propia Asamblea. Los titulos de las acciones amortizadas quedaran
extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros, dos o mas que determine la Asamblea de Accionistas. Si la Asamblea lo
considera pertinente, podra designar un Administrador Unico Suplente o a
miembros suplentes del Consejo de Administracion, segun sea el caso. Los
Consejeros y sus Suplentes podran ser o no accionistas; desempenaran sus cargos
hasta que las personas designadas para substituirlos tomen posesion de los
mismos; podran ser reelectos y recibiran las remuneraciones que determine la
Asamblea General de Accionistas.
ARTICULO IX. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerza el
derecho de minorias establecido en este articulo, todos los miembros del Consejo
de Administracion seran designados por mayoria de votos.
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ARTICULO X. El Consejo de Administracion o el Administrador Unico, en
su caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones:
a) Ejercitar el poder de la sociedad para pleitos y cobranzas, con
todas las facultades generales y las especiales que requieran de clausula
especial de acuerdo con la Ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de los
Codigos Civiles de las entidades federativas de los Estados Unidos Mexicanos:
estando por lo tanto facultado para desistirse de procedimientos, aun del juicio
de amparo; formular querellas y denuncias penales y desistirse de ellas;
coadyuvar con el Ministerio Publico y otorgar perdon, cuando proceda; transigir:
someterse a arbitraje; formular, articular y absolver posiciones; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la Ley, entre los que se incluye representar a la sociedad ante autoridades
y tribunales penales, civiles, administrativos y del trabajo;
b) Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos;
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c) Ejecutar actos de dominio de acuerdo con lo previsto en el tercer
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos;
d) Suscribir titulos de credito de conformidad con el articulo noveno
de la Ley General de Titulos y Operaciones de Credito;
e) Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad,
en el pais y en el extranjero, en moneda nacional y en moneda extraniera, y
designar a las personas que puedan girar contra las mismas;
f) Nombrar y remover al director general y demas directores,
gerentes, funcionarios y empleados de la sociedad y determinar sus condiciones
de trabajo, remuneraciones y facultades;
g) Formular reglamentos interiores de trabajo;
h) Convocar Asambleas de Accionistas y ejecutar sus resoluciones;
i) Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; y
j) Conferir poderes generales y especiales en los terminos de los
parrafos uno, dos, tres, cuatro y cinco anteriores, con o sin facultades de
substitucion, asi como revocar los poderes que hubieren sido otorgados por la
sociedad.
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ARTICULO XI. Cuando la sociedad sea administrada por organo colegiado
el Presidente y el Secretario del Consejo de Administracion seran designados por
la Asamblea de Accionistas o por el Consejo de Administracion, y tendran las
facultades que se les otorguen al ser designados. El Secretario podra ser o no
miembro del Consejo.
ARTICULO XII. Para que las Sesiones del Consejo de Administracion
sean validas se requerira, en todo caso, la asistencia de la mayoria de sus
miembros o de sus respectivos suplentes. El Consejo de Administracion adoptara
sus resoluciones por mayoria de votos de los miembros presentes en cada Sesion.
Conforme a lo previsto en el articulo ciento cuarenta y tres de la Ley
General de Sociedades Mercantiles, los miembros del Consejo de Administracion
podran adoptar validamente resoluciones sin estar reunidas en formal Sesion,
siempre que tales resoluciones se confirmen por escrito por todos los miembros
del Consejo de Administracion. En todo caso sera responsabilidad de quien
desempene el cargo de Secretario del Consejo de Administracion de cerciorarse de
la autenticidad de tales escritos, de su formalizacion y de su conservacion.
ARTICULO XIII. El Presidente no tendra voto de calidad en caso de
empate. Si el Presidente o el Secretario no asisten a la Sesion, el cargo
respectivo, para efectos de la Sesion sera ocupado por el Consejero designado
par mayoria de votos de los miembros presentes. Las actas de Sesiones del
Consejo seran transcritas en un libro
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especialmente autor y seran firmadas por quienes actuen como Presidente y
Secretario de cada Sesion, asi como por cualquier Consejero que asistiere y
deseare hacerlo.
ARTICULO XIV. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los miembros del Consejo de Administracion y
los respectivos Suplentes, al tomar posesion depositaran con la sociedad la
cantidad de CIEN NUEVOS PESOS, MONEDA NACIONAL, cada uno, o, a su eleccion
exhibiran poliza de fianza otorgada por compania autorizada por igual suma. Los
miembros del Consejo de Administracion o el Administrador Unico segun sea el
caso, no podran retirar las garantias otorgadas hasta que su gestion haya sido
aprobada por Asamblea General de Accionistas. Los directores y demos
funcionarios de la sociedad otorgaron las garantias que determine la Asamblea de
Accionistas o el Consejo de Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
-------------------------
ARTICULO XV. La Vigilancia de la sociedad estara encomendada a uno o
dos Comisarios segun lo determine la Asamblea General de Accionistas. Si la
Asamblea lo considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
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ARTICULO XVII. Los Comisarios tendran las facultades y las
obligaciones establecidas por la Ley General de Sociedades Mercantiles.
ARTICULO XVIII. Los Comisarios otorgaran las garantias senaladas en
el articulo XIV (catorce romano) de estos estatutos para los miembros del
Consejo de Administracion, y solo podran retirarlas cuando su gestion haya sido
aprobada por Asamblea General de Accionistas.
ASAMBLEAS GENERALES DE ACCIONISTAS
----------------------------------
ARTICULO XIX. Las Asambleas Generales de Accionistas, se celebraran
en el domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas
para tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y
dos de la Ley General Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias.
ARTICULO XX. Las convocatorias para Asambleas de Accionistas deberan
ser expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion sea el caso, o, en la medida en que lo permita la ley,
por el Commisario o Comisarios. Sin embargo, los accionistas que representen
cuando menos el treinta y tres por ciento del capital social podran solicitar
por escrito, en cualquier tiempo, que el Administrador Unico o el Consejo de
Administracion, segun sea el caso, o los Comisarios, convoquen a Asamblea
General de Accionistas, para tratar los asuntos especificados en su solicitud.
Cualiquier accionistas titular de una o mas acciones tendra
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el mismo derecho en cualquiera de los casos senalados en el articulo ciento
ochenta y cinco de la Ley General de Sociedades Mercantiles. Si el Administrador
Unico, el Presidente o el Secretario del Consejo de Administracion, segun sea el
caso, o los Comisarios, no expidieren la convocatoria dentro de los quince dias
siguientes a la fecha la solicitud, un Juez de lo Civil o de Distrito del
domicilio de la sociedad har a la convocatoria a peticion de cualquier
accionista interesado, debiendo exhibir sus acciones para tal efecto, de
conformidad con lo previsto por la Ley.
ARTICULO XXI. Las convocatorias para Asambleas se publicaran en el
Diario Oficial de la Federacion o en uno de los diarios de mayor circulacion del
domicilio de la sociedad con por lo menos siete dias de anticipacion a la fecha
fijada para la Asamblea. Ademas, las convocatorias se notificaran por carta a
los accionistas, que se enviaran por correo certificado, con anterioridad a la
fecha de publicacion de la convocatoria a las direcciones que aparezcan en el
libro de Registro de Acciones de la sociedad. Tratandose de accionistas
domiciliados en el extranjero, dichas cartas se enviaran por correo aereo
certificado. Las convocatorias contendran el Orden del Dia y estaran firmadas
por quien las expida.
ARTICULO XXII. Las Asambleas podran celebrarse sin previa publicacion
de convocatoria si el capital social esta representado en su totalidad y
participa al momento de la votacion.
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ARTICULO XXIII. Solo los accionistas que aparezcan inscritos en el
Libro de Registro de Acciones de la sociedad como titulares de una o mas
acciones seran emitidos en Asambleas Generales de Accionistas.
ARTICULO XXIV. Los accionistas podran ser representados en Asambleas
por la persona o personas que designen mediante carta poder firmada ante dos
testigos, o por cualqier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV. Las actas de Asambleas se transcribiran a un libro
especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO XXVI. Las Asambleas seran presididas por el Administrador
Unico o por el Presidente del Consejo de Administracion segun sea el caso. Sin
embargo, en caso de que quien desempene alguno de los cargos mencionados
estuviere ausente, la Asamblea en cuestion sera presidida por la persona que se
designe por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas Generales de
Accionistas; sin embargo, en su ausencia, actuara como tal la persona designada
por resolucion de la Asamblea.
ARTICULO XXVII. Las Asambleas Generales Ordinarias se celebraran
cuando menos una vez al ano dentro de los cuatro meses siguientes al cierre de
cada ejercicio social. Ademas de los asuntos especificados en el Orden del Dia,
la Asamblea
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Ordinaria Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluya los informes y estados financieros a que se refiere
el enunciado general del articulo ciento setenta y dos de la Ley General de
Sociedades Mercantiles, tomando en cuenta el informe del Comisario o Comisarios,
y adoptar las medidas que juzgue oportunos; designar al Administrador Unico o a
los miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios, asi como determinar las remuneraciones al Administrador Unico a los
miembros del Consejo de Administracion y Comisarios.
ARTICULO XXVIII. Para que sean validas las Asambleas Generales
Ordinarias de Accionistas celebradas en virtud de primera o ulterior
convocatoria deberan reunir la presencia de, por lo menos, el cincuenta por
ciento de los acciones representatives del capital social.
ARTICULO XXIX. Para que sean validas las Asambleas Generales
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan renir, por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la Asamblea se considera legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social.
ARTICULO XXX. Tratandose de Asambleas Generales Ordinarias, las
resoluciones en ellas adoptadas seran validas cuando se emita voto favorable por
la
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mayoria de las acciones presentes, siempre y cuando hubiere existido quorum
de presencia en los terminos del articulo XXVIII (veintiocho romano) de los
estatutos sociales.
En el caso de Asambleas Generales Extraordinarias, sus resoluciones
seran validas cuando sean adoptadas por el voto favorable de las acciones que
representen, cuando menos, el cincuenta por ciento de las acciones que integren
el capital social.
ARTICULO XXXI. Conforme a lo dispuesto en el articulo ciento setenta
y ocho de la Ley General de Sociedades Mercantiles, podran validamente los
accionistas adoptar resoluciones sin la celebracion de Asamblea, siempre y
cuando tales resoluciones consten por escrito firmado por todos los accionistas
titulares de la totalidad de las acciones con derecho a voto representativas del
capital de la sociedad. En todo caso sera responsabilidad de quien desempene el
cargo de Secretario del Consejo de Administracion cerciorarse de la autenticidad
de tales escritos, de su formalizacion y de su conservacion.
INFORMACION FINANCIERA
----------------------
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de
cada ejercicio social, el Administrador Unico o el Consejo de Administracion, en
su caso, formulara los siguientes estados financieros, los que deberan contener
toda la informacion que sea necesaria para reflejar el estado que guarda la
situacion financiera y
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operativa de la sociedad, en terminos del enunciado general del articulo ciento
setenta y dos de la Ley General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados financieros
anteriores.
ARTICULO XXXIII. Los estados financieros, junto con los documentos
justificativos, deberan ser entregados al Comisario o Comisarios con un mes de
anticipacion, cuando menos, a la fecha fijada para la Asamblea General Anual
Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO XXXIV. Dentro de los quince dias siguientes a la fecha en
que les hayan sido entregados los estados financieros, los Comisarios deberan
entregar al Administrador Unico o al Consejo de Administracion, segun sea el
caso, un informe para los accionistas respecto de la veracidad, suficiencia y
razonabilidad de la informacion
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que les haya sido presentada por el Consejo de Administracion o por el
Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, a disposicion de los accionistas,
para su revision, por lo menos durante los quince dias anteriores a la fecha
senalada para la Asamblea General Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse publicar
y depositor en la forma y terminos previstos en el articulo ciento setenta y
siete de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV. Las utilidades netas de cada ejercicio social seran
distribuidas de la siguiente manera:
a) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir, el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
b) El saldo de las utilidades netas se aplicara segun lo determine la
Asamblea General Ordinaria de Accionistas.
ARTICULO XXXVI. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva y, si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a
20
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las obligaciones de la sociedad estara limitada al pago del valor nominal de sus
respectivas acciones.
DISOLUCION Y LIQUIDACION
------------------------
ARTICULO XXXVII. La sociedad se disolvera en cualquiera de los
supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra en
liquidacion. La liquidacion se encomendara a uno o mas liquidadores designados
por Asamblea General Extraordinaria de Accionistas. Si la Asamblea no hiciere
la designacion correspondiente la hara un Juez de lo Civil o de Distrito del
domicilio de la sociedad a solicitud de cualquier accionista.
ARTICULO XXXVIII. En ausencia de instrucciones expresas en contrario
dadas a los liquidadores por la Asamblea, la liquidacion se llevara a cabo de
acuerdo con las siguientes bases generales:
a) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
b) Cobro de cuentas por cobrar y pago de deudas;
c) Venta de todos los activos de la sociedad;
d) Preparacion del balance final de liquidacion;
e) Distribucion del remanente, si lo hubiere, entre
los accionistas, en proporcion a su participacion en el capital social.
21
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DISPOSICIONES GENERALES
-----------------------
ARTICULO XXXIX. Los socios fundadores, como tales, no se resevan
participacion alguna.
ARTICULO XL. Todo extranjero que en el acto de la constitucion, o en
cualquier tiempo ulterior, adquiera un interes o participacion social en la
sociedad, se considerara, por ese simple hecho como mexicano respecto de uno y
otra, y conviene en no invocar la proteccion de su Gobierno, bajo la pena, en
caso de faltar a su convenio, de perder dicho interes o participacion en
beneficio de la Nacion Mexicana.
CLAUSULAS TRANSITORIAS
PRIMERA. El capital social minimo fijo sin derecho a retiro, o sea,
la suma de CINCUENTA MIL NUEVOS PESOS, MONEDA NACIONAL, quedara integramente
suscrito y pagado como sigue:
GRUPO JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, suscribe CUARENTA Y NUEVE
ACCIONES de la Serie "A", con valor nominal de CUARANTA Y NUEVE MIL NUEVOS
PESOS, MONEDA NACIONAL N$ 49,000.00 PRODENOB, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe UNA ACCION, con valor nominal total de UN MIL NUEVOS PESOS,
MONEDA NACIONAL N$ 1,000.00 TOTAL: CINCUENTA Acciones de la Serie "A", con
valor nominal de CINCUENTA MIL NUEVOS PESOS, MONEDA NACIONAL N$ 50,000.00.
22
<PAGE>
SEGUNDA. - Los otorgantes constituidos en la primera Asamblea General
de Accionistas, haciendo uso del derecho que les concede la Ley y los presentes
Estatutos, convienen en que la sociedad sea administrada por un CONSEJO DE
ADMINISTRACION, que queda integrado de la siguiente forma y al cual se le
otorgan las facultades enumeradas en el Articulo Decimo de estos estatutos
sociales:
CONSEJEROS PROPIETARIOS CARGO
SENOR ALFREDO MUNDA TABUSSO PRESIDENTE
SENOR MICHAEL ANTHONY DIGREGORIO DIMAIO TESORERO
SENORITA MARIA TERESA MARTINEZ VAZQUEZ VOCAL
SENOR SERGIO RENE APARICIO GONZALEZ VOCAL
SENOR ALBERTO MENA ADAME SECRETARIO
CONSEJEROS SUPLENTES
SENOR LEOBARDO PORTILLO ESPINOSA
SENOR SAMUEL PARRA HUERTA
SENOR LUIS ALFONSO CERVANTES MUNIZ
Los Consejeros Suplentes podran sustituir indistintamente a cualquiera de
los Consejeros Propietarios en ausencia de estos.
TERCERA. En este acto se designan como funcionarios de la Sociedad a las
siguientes personas con los cargos y facultades que a continuacion se indican:
23
<PAGE>
Al senor ALFREDO MUNDA TABUSSO, PRESIDENTE Y DIRECTOR GENERAL de la
Sociedad, quedando sujeta dicha designacion a la condicion suspensiva de que su
desempeno en tal caracter sea debidamente autorizado por el Instituto Nacional
de Migracion, con fundamento en las disposiciones aplicables de la Ley General
de Poblacion; para el desempeno de sus funciones el senor ALFREDO MUNDA TABUSSO,
gozara del poder general de la sociedad para:
a) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que de acuerdo con la Ley, requieran poder o clausula especial sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere la fraccion V (quinto romano) del articulo dos mil quinientos ochenta y
siete del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Civiles de las entidades que integran la Federacion;
24
<PAGE>
b) ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) La realizacion de actos que involucren las mas amplias FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en su relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion, pero con la excepcion de la
facultad de hacer cesion de bienes a que se refiere la fraccion V (quinto
romano) del articulo dos mil quinientos ochenta y siete del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la Federacion. De manera enunciativa y no limitativa, se
mencionan, entre otras, facultades para representar a COMERCIALIZADORA JAFRA,
SOCIEDAD
25
<PAGE>
ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Consumo de los Trabajadores,
ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales
como federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el de amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y demas
aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
sea parte o tercera interesada;
d) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la sociedad, en terminos del articulo Noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero, en moneda nacional y en moneda extranjera,
designando a personas autorizadas para operar dichas cuentas y girar contra las
mismas; y
26
<PAGE>
e) OTORGAR Y REVOCAR poderes en terminos de los parrafos a) y b)
anteriores, con o sin facultades de sustitucion.
A la senorita MARIA TERESA MARTINEZ VAZQUEZ, VICEPRESIDENTE COMERCIAL, de
la Sociedad, para el desempeno de sus funciones la senorita MARIA TERESA
MARTINEZ VAZQUEZ, gozara del poder general de la sociedad para:
a) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que de acuerdo con la Ley, requieran poder o clausula especial sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver articular y posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda ciase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere la fraccion V (quinto romano) del articulo dos mil quinientos ochenta y
siete del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Civiles de las entidades que integran la Federacion;
27
<PAGE>
b) ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) La realizacion de actos que involucren las mas amplias FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en su relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generates y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion, pero con la excepcion de la
facultad de hacer cesion de bienes a que se refiere la fraccion V (quinto
romano) del articulo dos mil quinientos ochenta y siete del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la Federacion. De manera enunciativa y no limitativa, se
mencionan, entre otras, facultades para representar a COMERCIALIZADORA JAFRA,
SOCIEDAD
28
<PAGE>
ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Consumo de los Trabjadores, ii)
ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales
como federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el de amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y demas
aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
sea parte o tercera interesada;
d) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la sociedad, en terminos del articulo Noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero, en moneda nacional y en moneda extranjera,
designando a personas autorizadas para operar dichas cuentas y girar contra las
mismas; y
29
<PAGE>
e) OTORGAR Y REVOCAR poderes en terminos de los parrafos a) y b)
anteriores, con o sin facultades de sustitucion.
Al senor MICHAEL ANTHONY DIGREGORIO DIMAIO, DIRECTOR DE FINANZAS de la
Sociedad, quedando sujeta dicha designacion a la condicion suspensiva de que su
desempeno en tal caracter sea debidamente autorizado por el Instituto Nacional
de Migracion, con fundamento en las disposiciones aplicables de la Ley General
de Poblacion, para el desempeno de sus funciones senor MICHAEL ANTHONY
DIGREGORIO DIMAIO, gozara de poder general de la sociedad para:
a) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que de acuerdo con la Ley, requieran poder o clausula especial sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere la fraccion V (quinto romano) del articulo dos mil quinientos ochenta y
siete del Codigo Civil para el Distrito
30
<PAGE>
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion;
b) ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) La realizacion de actos que involucren las mas amplias FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en su relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion, pero con la excepcion de la
facultad de hacer cesion de bienes a que se refiere la fraccion V (quinto
romano) del articulo dos mil quinientos ochenta y siete del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que
31
<PAGE>
integran la Federacion. De manera enunciativa y no limitativa, se mencionan,
entre otras, facultades para representar a COMERCIALIZADORA JAFRA, SOCIEDAD
ANONINA DE CAPITAL VARIABLE: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Consumo de los Trabjadores, ii)
ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales
como federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en todo clase de
procedimientos, incluyendo el de amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y demas
aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
sea parte o tercera interesada;
d) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la sociedad, en terminos del articulo Noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero,
32
<PAGE>
en moneda national y en moneda extranjera, designando a personas autorizadas
para operar dichas cuentas y girar contra las mismas; y
e) OTORGAR Y REVOCAR poderes en terminos de los parrafos a) y b)
anteriores, con o sin facultades de sustitucion.
Al senor SERGIO RENE APARICIO GONZALEZ, DIRECTOR DE RELACIONES
INDUSTRIALES de la sociedad, para el desempeno de sus funciones el senor SERGIO
RENE APARICIO GONZALEZ, gozara del poder general de la sociedad para:
a) PLEITOS Y COBRANZAS, con todas las facultades generates y las
especiales que de acuerdo con la Ley, requieran poder o clausula especial sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunaies, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere la fraccion V (quinto romano) del articulo dos mil quinientos ochenta y
siete del Codigo Civil para el Distrito
33
<PAGE>
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion;
b) ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran
la Federacion;
c) La realizacion de actos que involucren las mas amplias FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de COMMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en su relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de represente legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion, pero con la excepcion de la
facultad de hacer cesion de bienes a que se refiere la fraccion V (quinto
romano) del articulo dos mil quinientos ochenta y siete del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que
34
<PAGE>
integran la Federacion. De manera enunciativa y no limitativa, se mencionan,
entre otras, facultades para representar a COMERCIALIZADORA JAFRA, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Consumo de los Trabajadores,
ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales
como federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el de amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y demas
aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
sea parte o tercera interesada;
d) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la sociedad, en terminos del articulo Noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero,
35
<PAGE>
en moneda nacional y en moneda extranjera, designando a personas autorizadas
para operar dichas cuentas y girar contra las mismas; y
e) OTORGAR Y REVOCAR poderes en terminos de los parrafos a) y b)
anteriores, con o sin facultades de sustitucion.
Al senor ALBERTO MENA ADAME, GERENTE JURIDICO de la Sociedad, para el
desempeno de sus funciones el senor ALBERTO MENA ADAME, gozara de poder general
de la sociedad para:
a) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que de acuerdo con la Ley, requieran poder o clausula especial sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere la fraccion V (quinto romano) del articulo dos mil quinientos ochenta y
siete del Codigo Civil para el Distrito
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Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion;
b) ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) La realizacion de actos que involucren las mas amplias FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en su relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion, pero con la excepcion de la
facultad de hacer cesion de bienes a que se refiere la fraccion v (quinto
romano) del articulo dos mil quinientos ochenta y siete del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la
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Federacion. De manera enunciativa y no limitativa, se mencionan, entre otras,
facultades para representar a COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Consumo de los Trabjadores, ii)
ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales
como federales, y ante las autoridades laborales a que se refiere el
articulo quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase
de procedimientos, incluyendo el de amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y demas
aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones y en toda la secuela de los juicios
laborales en que COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
sea parte o tercera interesada;
d) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la sociedad, en terminos del articulo Noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero,
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en moneda nacional y en moneda extranjera, designando a personas autorizadas
para operar dichas cuentas y girar contra las mismas; y
e) OTORGAR Y REVOCAR poderes en terminos de los parrafos a) y b)
anteriores, con o sin facultades de sustitucion.
CUARTA. En este acto se designa como Apoderados de la Sociedad a los
senores MANUEL VERA VALLEJO, GERMAN MUGGENBURG RODRIGUEZ VIGIL, PEDRO VELASCO
ALVARADO Y LUIS ALFONSO CERVANTES MUNIZ, quienes para el desempeno de su mandato
gozaran de un Poder General para Pleitos y Cobranzas y Actos de Administracion,
mismo que se ejercitara conjunta o separadamente, en los siguientes terminos:
a) Poder general para pleitos y cobranzas, con todas las facultades
generales y aun con las especiales que de acuerdo con la Ley, requieran poder o
clausula especial en los terminos del parrafo primero del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil del Distrito Federal y de sus
correlativos de los Estados.
De manera enunciativa y no limitativa se mencionan, entre otras
facultades, las siguientes:
I. Para intentar y desistirse de toda clase de procedimientos,
inclusive amparo.
II. Para transigir.
III. Para comprometer en arbitros.
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IV. Para absolver y articular posiciones.
V. Para recusar.
VI. Para recibir pagos.
VII. Para presenta denuncias y querellas en materia penal y desistirse
de ellas cuando lo permita la Ley.
VIII. Para coadyuvar con el Ministerio Publico y para exigir la
reparacion civil del dano.
El mandato a que alude el inciso anterior, se ejercitara ante
particulates y ante toda clase de autoridades administrativas o judiciales,
inclusive de caracter federal, estatal, municipal y penal, y ante las Juntas de
Conciliacion y Arbitraje, locales o federales y autoridades del trabajo.
b) Poder general para actos de administracion en los terminos del
parrafo segundo del citado articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil.
QUINTA. Asi mismo se designa para ocupar el cargo de COMISARIO de la
Sociedad al senor FERNANDO HOLGUIN MAILLARD y como COMISARIO SUPLENTE, al senor
ALFONSO GALAN JIMENEZ DE LA CUESTA.
SEXTA. El senor MICHAEL ANTHONY DIGREGORIO DIMAIO en su caracter de
TESORERO DEL CONSEJO DE ADMINISTRACION, hace constar que ha recibido y obra a
disposicion de la sociedad, la suma de CINCUENTA
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MIL NUEVOS PESOS, MONEDA NACIONAL, importe del capital social suscrito y pagado.
SEPTIMA. De conformidad con el segundo parrafo del articulo noventa y
cuatro de la Ley del Notariado para el Distrito Federal en vigor, los
comparecientes manifiestan, que por asi convenir a sus intereses, el primer
testimonio del presente instrumento sera inscrito en el Registro Publico de
Comercio del domicilio social por "COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, liberando en consecuencia al suscrito Notario de dicha
responsabilidad.
P E R S O N A L I D A D
-----------------------
Los senores MICHAEL ANTHONY DIGREGORIO DIMAIO y PATRICIA ANGELINA RIOS
DEL PERAL, acreditan las personalidades que ostentan, declarando de manera
expresa y bajo protesta de decir verdad que nos les han sido revocadas,
suspensas ni limitadas en forma alguna, asi como la existencia y capacidad
legales de sus representadas, con las copias certificadas expedidas por el
suscrito Notario, que se agregan al apendice en el legajo marcado con el numero
de este instrumento bajo las letra "B" y "C".
G E N E R A L E S
-----------------
Los comparecientes manifestaron de manera expresa y bajo protesta de
decir verdad, por sus generales ser:
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El senor MICHAEL ANTHONY DIGREGORIO DIMAIO, de Nacionalidad por
nacimiento, originario de Springfield, Massachusetts, en donde nacio el dia dos
de octubre de mil novecientos cincuenta y cuatro, casado, Director de Finanzas y
con domicilio en Giotto numero noventa y siete, esquina Sassoferrato, Colonia
Alfonso Trece, en esta Ciudad.
Se identifica y acredita su legal estancia en el pais con su forma
migratoria FM dos, numero trescientos veintidos mil ochocientos cuarenta y
siete, expedido por la Secretaria de Gobernacion.
Y la senora PATRICIA ANGELINA RIOS DEL PERAL, mexicana por nacimiento,
originaria de Mexico, Distrito Federal, en donde nacio el dia veinticuatro de
noviembre de mil novecientos cincuenta y cinco, casada, Ejecutivo de Empresa y
con domicilio en Jose Maria Rico numero doscientos veintiuno, Colonia del Valle,
en esta Ciudad.
Se identifica con licencia para conducir numero dos millones trescientos
trece mil ochocientos treinta y uno, expedida por la Secretaria General de
Proteccion y Vialidad del Departamento del Distrito Federal.
YO, EL NOTARIO CERTIFICO:
I. Que conceptuo a los comparecientes legalmente capacitados para la
celebracion de este acto.
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II. Que lo relacionado e inserto concuerda fielmente con sus originales
a los que me remito y he tenido a la vista.
III. Que leido este instrumento a los comparecientes y habiendoles
explicado el valor y las consecuencias legales de su contenido, manifestaron su
conformidad y firman el dia de su otorgamiento.
FIRMAS: MICHAEL ANTHONY DIGREGORIO DIMAIO. PATRICIA ANGELINA RIOS DEL
PERAL. RUBRICAS.
NOTAS COMPLEMENTARIAS
---------------------
NOTA 1A. A 05 DE DICIEMBRE DE 1995 CON ESTA FECHA SE EXPIDIO EN 20
FOJAS 1 COPIA (S) CERTIFICADA (S) A FAVOR DE "COMERCIALIZADORA JAFRA", S.A. DE
C.V. COMO INTERESADO (S). DOY FE. CARLOS ALEJANDRO DURAN LOERA. RUBRICA.
ANTE MI: CARLOS ALEJANDRO DURAN LOERA. RUBRICA. EL SELLO DE AUTORIZAR:
"LIC. CARLOS ALEJANDRO DURAN LOERA. NOTARIA No. ll. MEXICO, DISTRITO FEDERAL.
ESTADOS UNIDOS MEXICANOS.
AUTORIZO DEFINITIVAMENTE EN MEXICO, DISTRITO FEDERAL EL DIA SEIS DE
DICIEMBRE DE MIL NOVECIENTOS NOVENTA Y CINCO.
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CARLOS ALEJANDRO DURAN LOERA. RUBRICA. EL SELIO DE AUTORIZAR: "LIC.
CARLOS ALEJANDRO DURAN LOERA. NOTARIA No. ll. MEXICO, DISTRITO FEDERAL.
ESTADOS UNIDOS MEXICANOS".
NOTAS COMPLEMENTARIAS
---------------------
NOTA 2A. CON FECHA SEIS DE ENERO DE 1996. DI A LA SECRETARIA DE
RELACIONES EXTERIORES, EL AVISO EN CUMPLIMIENTO A LO DISPUESTO EN LOS ARTICULOS
31, PARRAFO 3o. y 32, FRACCION II, PARRAFO 4o. DEL REGLAMENTO DE LA LEY PARA
PROMOVER LA INVERSION MEXICANA Y REGULAR LA INVERSION EXTRANJERA, CUYO DOCUMENTO
LO AGREGO AL APENDICE DE ESTA ESCRITURA, BAJO LA LETRA "D". DOY FE. CARLOS
ALEJANDRO DURAN LOERA. RUBRICA.
NOTA 3a. CON FECHA OCHO DE ENERO DE 1996. ME FUE PRESENTADA LA CEDULA
DE IDENTIFICACION FISCAL, NUMERO CJA951204EB7, EXPEDIDA POR LA SECRETARIA DE
HACIENDA Y CREDITO PUBLICO, DICHA COPIA SE AGREGA AL APENDICE CON LA LETRA "E".
DOY FE. CARLOS ALEJANDRO DURAN LOERA. RUBRICA.
I N S E R C I O N
ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO CIVIL PARA EL
DISTRITO FEDERAL.
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"En todos los poderes generales para pleitos y cobranzas bastara que se
diga que se otorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley, para que se entiendan conferidos
sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar que se
dan con ese caracter, para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que se
den con ese carcacter para que el apoderado tenga todas las facultades de dueno,
tanto en lo relativo a los bienes, como para hacer toda clase de gestiones a fin
de defenderlos,
Cuando se quisieren limitar, en los tres casos antes mencionados, las
facultades de los apoderados, se consignaran las limitaciones o los poderes
seran especiales.
Los Notarios insertaran este articulo en los testimonios de los poderes
que otorguen."
DOCUMENTO DEL APENDICE
LOS DOCUMENTOS QUE SE AGREGAN AL APENDICE DE ESTE INSTRUMENTO MARCADOS
CON LAS LETRAS " B" Y "C", SE TRANSCRIBEN INTEGRAMENTE A CONTINUACION:
45
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PERSONALIDAD DEL REPRESENTANTE DE "GRUPO JAFRA", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE.
EL LICENCIADO CARLOS ALEJANDRO DURAN LOERA, TITULAR DE LA NOTARIA NUMERO
ONCE DEL DISTRITO FEDERAL, CERTIFICA: Que a fin de acreditar su personalidad
----------
como representante de "GRUPO JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, le
fue presentado por el senor MICHAEL ANTHONY DIGREGORIO DIMAIO, el siguiente
documento:
Escritura tres mil seiscientos cincuenta, de fecha once de septiembre de
mil novecientos noventa y cinco, ante la fe del Licenciado Carlos Antonio Rea
Field, Titular de la Notaria numero ciento ochenta y siete del Distrito Federal,
cuyo primer testimonio quedo debidamente inscrito en el Registro Publico de la
Propiedad y de Comercio de esta Ciudad, en el Folio Mercantil numero cuarenta y
seis mil novecientos sesenta y dos, el dia trece de octubre de mil novecientos
noventa y cinco. De dicho instrumento copio en su parte conducente lo que
sigue:
"......A N T E C E D E N T E S l - ESCRITURA CONSTITUTIVA. Por escritura
numero treinta y ocho mil cuatrocientos nueve, de fecha veintiuno de agosto de
mil novecientos ochenta y uno, otorgada ante el Licenciado Fernando G. Arce,
titular de la Notaria ochenta y nueve del Distrito Federal, inscrito su primer
testimonio en el Registro Publico de la Propiedad y de Comercio de esta ciudad,
en el folio mercantil numero cuarenta y seis mil novecientos sesenta y dos,
instrumento por el que previo permiso
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concedido por la Secretaria de Relaciones Exteriores marcado con el numero
treinta y nueve mil cuatrocientos ochenta y cuatro, en el expediente numero
setecientos cuarenta y siete mil cuatrocientos noventa y uno, se constituyo
"INMO-JAFRA MEXICANA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, con domicilio en el
Distrito Federal, una duracion de NOVENTA Y NUEVE ANOS, capital social minimo de
UN MILLON DE PESOS, Moneda Nacional (equivalentes a UN MIL NUEVOS PESOS, Moneda
Nacional) y capital maximo ilimitado.
II. FUSION. Por escritura numero treinta y seis mil trescientos veinte,
de fecha veintinueve de marzo de mil novecientos ochenta y cuatro, otorgada ante
el Licenciado Carlos A. Yfarraguerri y Villarreal, titular de la Notaria
veintiocho del Distrito Federal, inscrito su primer testimonio en el Registro
Publico de la Propiedad y de Comercio de esta ciudad, en los folios mercantiles
numeros seis mil transcientos veintisiete y cuarenta y seis mil novecientos
sesenta y dos, se hizo constar la fusion por absorcion en virtud de la cual,
"INMO-JAFRA MEXICANA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, absorvio a "JAFRA
COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, que desaparecio, y en dicha
escritura tambien se consigno la ampliacion del objeto social de la Sociedad
fusionante, reformandose al efecto el articulo tercero de sus Estatutos
Sociales.
III. CAMBIO DE DENOMINACION. Por escritura numero treinta y seis mil
quinientos noventa y cuatro, de fecha veintiocho de junio de mil novecientos
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ochenta y cuatro, otorgada ante el mismo Notario que la anterior, inscrito su
primer testimonio en el Registro Publico de la Propiedad y de Comercio del
Distrito Federal, en el folio mercantil cuarenta y seis mil novecientos sesenta
y dos, se hizo constar la Protocolizacion de un acta de la Asamblea General
Extraordinaria, celebrada por los accionistas de la Sociedad que nos ocupa, el
dia dos de abril de mil novecientos ochenta y cuatro, por la que se
formalizaaron entre otros acuerdos, el de cambiar la denominacion de "INMO-JAFRA
MEXICANA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE por la de "JAFRA COSMETICS",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, reformandose al efecto el articulo primero
de sus Estatutos Sociales.
VIII. CAMBIO DE DENOMINACION. Por escritura numero veintinueve mil
ochocientos ochenta y siete, de fecha primero de marzo de mil novecientos
noventa y uno, otorgada ante el mismo Notario que la anterior, inscrito su
primer testimonio en el Registro Publico de la Propiedad y de Comercio del
Distrito Federal, en el folio mercantil cuarenta y seis mil novecientos sesenta
y dos, se hizo constar la Protocolizacion de un acta de Asamblea General
Extraordinaria, celebrada por los accionistas de la expresada Sociedad, el dia
veintinueve de enero de mil novecientos noventa y uno, por la que se
formalizaron entre otros acuerdos, el de cambiar la denominacion de "JAFRA
COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por la de "GRUPO JAFRA",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, reformandose al efecto el articulo primero
de sus estatutos sociales.
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X. NOMBRAMIENTO DEL PRESIDENTE DEL CONSEJO DE ADMINISTRACION,
RATIFICACION DEL SECRETARIO DEL MISMO CONSEJO Y PROTOCOLIZACION DE LOS NUEVOS
ESTATUTOS SOCIALES. Por escritura numero tres mil cuatrocientos cincuenta y
tres, de fecha tres de mayo de mil novecientos noventa y cinco, otorgada ante el
suscrito Notario, en tramite de inscripcion su primer testimonio en el Registro
Publico de la Propiedad y de Comercio de esta ciudad, por lo reciente su
otorgamiento, se hizo constar la Protocolizacion Parcial de un acta de Asamblea
General Ordinaria Anual y Extraordinaria celebrada por los accionistas de "GRUPO
JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el primero de agosto de mil
novecientos noventa y cuatro, por la que se formalizaron entre otros acuerdos,
el de designar como Presidente y miembro del Consejo de Administracion de la
expresada Sociedad, al senor JULIO PEDRO CEPEDA REBOLLO; ratificar como
Secretario y miembro del mismo Consejo de Administracion, al senor Licenciado
LUIS ALFONSO CERVANTES MUNIZ;....... "7. Se ratifica la designacion del senor
Luis Alfonso Cervantes Muniz como miembro y Secretario del Consejo de
Administracion de la sociedad........ "DEL APENDICE.-LETRA "C". - GRUPO JAFRA,
S.A. DE C.V., ESTATUTOS. NOMBRE, DOMICILIO, OBJETO Y DURACION.- ARTICULO I.- La
denominacion de la sociedad es "GRUPO JAFRA" y debera ir siempre seguida de las
palabras "sociedad anonima de capital variable", o de su abreviatura "S.A. DE
C.V.". ARTICULO II. El domicilio de la sociedad es el Distrito Federal, Mexico;
sin embargo,
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podra establecer agencias o sucursales en cualquier otra parte de la Republica
Mexicana o del extranjero y someterse a domicilios convencionales. ARTICULO III.
La sociedad tendra por objeto: 1) Detentar y negociar en cualquier forma con
todo tipo de acciones, partes sociales, certificados de participacion y
constancias de partes sociales, certificados de participacion y constancias de
interes emitidas por todo tipo de sociedades mercantiles; 2) Promover la
incorporacion y organizacion de todo tipo de sociedades y organizaciones
mercantiles; 3) Adquirir acciones, partes sociales, certificados de
participacion y constancias de interes que acrediten inversion en cualquier tipo
de empresas, sociedades, organizaciones y asociaciones; 4) Vender, transferir,
entregar y en cualquier otra forma permitida por la Ley negociar con acciones,
partes sociales, certificados de participacion y constancias de interes que
acrediten inversion en cualquier tipo de empresas, sociedades, organizaciones y
asociaciones; 5) Recibir de otras sociedades y personas, asi como proporcionar a
tales entidades y sociedades, en las cuales la sociedad sea accionista o socio,
todo tipo de servicios que se requieran para lograr sus objeto sociales, tales
como servicios administrativos, financieros, legales, de mercadeo y de
tesoreria, incluyendo la preparacion de reportes y estados financieros,
presupuestos, programas y manuales de operacion, asi como la evaluacion de
resultados operacionales, evaluacion de productividad y posibilidades de
financiamiento, incluyendo analisis de disponibilidad de capital; 6) Establecer,
arrendar, subarrendar, operar y poseer en cualquier forma permitida por la Ley,
oficinas, fabricas, talleres,
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bodegas, plantas, almacenes, tiendas y demas establecimientos necesarios para la
realizacion del objeto social, asi como adquirir y enajenar toda clase de
negociaciones industriales y comerciales, incluyendo acciones, participaciones e
instrumentos por ellas emitidos; 7) Solicitar, obtener, registrar, comprar,
utilizar, ceder o en cualquier otra forma disponer y adquirir marcas, nombres
comerciales, derechos de autor, patentes, invenciones y procesos; 8) Establecer
sucursales, subsidiaries, agencias y oficinas de representacion en Mexico y en
el extranjero; 9) Representar y actuar como agente, en la Republica Mexicana y
en el extranjero, de empresas industriales y comerciales, sean nacionales o
extranjeras; 10) Adquirir, poseer, arrendar, subarrendar, comprar, vender y
negociar en cualquier otra forma permitida por la ley con bienes inmuebles,
incluyendo la adquisicion, establecimiento y operacion de laboratorios de
investigacion; 11) Proporcionar toda clase de servicios tecnicos,
administrativos de asesoria y de supervision empresas industriales y
comerciales, tanto en Mexico como en el extranjero, y recibir dichos servicios;
12) Proporcionar y recibir servicios de maquila y de fabricacion o procesamiento
de materiales a y de toda clase de entidades y negocios industriales y
comerciales; 13) Dar y tomar dinero en prestamo con o sin garantias de cualquier
tipo, emitir bonos, obligaciones y demas titulos de credito, con la supervision
e intervencion de las instituciones que en cada caso requiera de acuerdo con la
Ley; 14) Garantizar obligaciones de terceros; y 15) En general, realizar toda
clase de actos y celebrar toda clase de contratos, sean civiles o mercantiles,
permitidos por la Ley.
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ARTICULO IV. La sociedad tendra duracion de noventa y nueve anos contados a
partir de la fecha de su constitucion. ARTICULO V. El capital social es
variable. El capital fijo sin derecho a retiro es de N$1,000.00 M.N. (un mil
nuevos pesos 00/100, moneda nacional), . . . . . . . ARTICULO XI. Cuando la
sociedad sea administrada por organo colegiado el Presidente y el Secretario del
Consejo de Administracion seran designados por la Asamblea de Accionistas o por
el Consejo de Administracion, tendran las facultades que se les otorguen al ser
designados. El Secretario podra ser o no miembro del Consejo. . . . . . . . ."
3. Con efectos a partir del lo. de mayo de 1995 se designa al senor Michael
Anthony Digregorio Director de Finanzas de GRUPO JAFRA, S.A. DE C.V., quedando
sujeta dicha designacion a la condicion suspensiva de que su desempeno en tal
caracter sea debidamente autorizado por el Instituto Nacional de Migracion, con
fundamento en las disposiciones aplicables de la Ley General de Poblacion. Para
el desempeno de sus funciones el senor Michael Anthony DiGregorio gozara del
poder general de la sociedad para: a) Pleitos y cobranzas, con todas las
facultades generales y las especiales que requieren clausula especial conforme a
la Ley, sin limitacion alguna, en los terminos del primer parrafo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
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recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la Ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo, con excepcion de la facultad de hacer cesion de bienes a que se
refiere el articulo 2587 del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion;
b) Administrar bienes, en los torminos del parrafo segundo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion; c) La realizacion de actos que involucren las mas amplias facultades
de administracion y direccion por lo que respecta a la planeacion, organizacion,
mando y control del personal de GRUPO JAFRA, S.A. DE C.V. y, en consecuencia,
por ministerio del articulo once de la Ley Federal del Trabajo, habra de tener
el caracter de representante legal de GRUPO JAFRA, S.A. DE C.V. en sus
relaciones con los trabajadores; asimismo se le otorga, sin limitacion alguna,
en su caracter de representante legal, el poder general de la sociedad para
pleitos y cobranzas, con todas las facultades generales y aun las especiales que
de acuerdo con la Ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
para el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la Federacion, pero con la excepcion de la facultad de
hacer cesion de bienes a que se refiere la fraccion V del
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articulo 2587 del Codigo Civil para el Distrito Federal y articulos correlativos
en los Codigos Civiles de las entidades que integran la Federacion. De manera
enunciativa y no limitativa, se mencionan, entre otras, facultades para
representar a GRUPO JAFRA, S.A. DE C.V.; i) ante toda clase de autoridades
administrativas y judiciales, tanto de caracter municipal como estatal y federal
ante el Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el
Instituto Mexicano del Seguro Social, inclusive por lo que respecta al Sistema
de Ahorro para el Retiro, y ante el Fondo Nacional para el Consumo de los
Trabajadores, ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje,
tanto locales como federales, y ante las autoridades laborales a que se refiere
el articulo quinientos veintitres de la Ley Federal del Trabajo, iii) en toda
clase de procedimientos, incluyendo el del amparo, y iv) compareciendo y
actuando, de acuerdo con lo dispuesto en los articulos once, seiscientos noventa
y dos, fraccion II, ochocientos setenta y seis, setecientos ochenta y seis y
demas aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que GRUPO JAFRA, S.A. DE C.V. sea parte o tercera interesada; d)
Suscribir y endosar titulos de credito en nombre y representacion de la
sociedad, en terminos del articulo noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la sociedad
con instituciones bancarias y con instituciones financieras y bursatiles, tanto
del pais como del extranjero, en moneda nacional y en moneda extranjera,
designando a personas autorizadas para operar dichas
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cuentas y girar contra las mismas; y e) Otorgar y revocar poderes en terminos de
los parrafos a), b) y c) anteriores, con o sin facultades de sustitucion ". . .
. . . . . . . OTORGAMIENTO DE PODERES GENERALES - - -CUARTA.- "GRUPO JAFRA",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada como se ha dicho, por el
Secretario de su Consejo de Administracion, el senor Licenciado LUIS ALFONSO
CERVANTES MUNIZ, en cumplimiento del acuerdo contenido en los dos documentos que
han quedado protocolizados en esta escritura y del articulo trigesimo primero de
los Estatutos Sociales de la citada Sociedad, OTORGA al senor MICHAEL ANTHONY
DIGREGORIO, para el desempeno de su cargo como Director de Finanzas de la
referida Sociedad, un PODER GENERAL para: A) PLEITOS Y COBRANZAS, con todas las
facultades generales y especiales que requieren clausula especial conforme a la
Ley, sin limitacion alguna, en los terminos del primer parrafo del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la Ley, entre los que se incluye representar a la Sociedad ante
toda clase de Autoridades y Tribunales, sean Penales, Civiles, Administrativos o
del Trabajo, CON EXCEPCION DE LA FACULTAD DE HACER CESION DE BIENES a
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que se refiere la fraccion cinco (romano) del articulo dos mil quinientos
ochenta y siete del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion;
B). ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulo correlativos en los Codigos Civiles de las entidades que integran la
Federacion; C). LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS
FACULTADES DE ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion,
organizacion, mando y control del personal de "GRUPO JAFRA", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por el ministerio del articulo once de la
Ley Federal del Trabajo, habra de tener el caracter de representante legal de
"GRUPO JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones con los
trabajadores; asimismo se le otorga, sin limitacion alguna, en su caracter de
representante legal, el poder general de la Sociedad para pleitos y cobranzas,
con todas las facultades generates y aun las especiales que de acuerdo con la
Ley requieran poder o clausula especial, en los terminos del parrafo primero del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos civiles de las Entidades que
intergran is Federacion, pero CON EXCEPCION DE LA FACULTAD DE HACER CESION DE
BIENES a que se refiere la fraccion cinco (romano) del articulo dos mil
quinientos ochenta y siete del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civil de las
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entidades que integran la Federacion. De manera enunciativa y no limitativa, se
mencionan entre otras, facultades para representar a "GRUPO JAFRA", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de Autoridades Administrativas y
Judiciales, tanto de caracter Municipal como Estatal y Federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, inclusive por lo que respecta al Sistema de Ahorro
para el Retiro, y ante el Fondo Nacional para el Connsumo de los Trabajdores,
ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto Locales
como Federales, y ante las Autoridades Laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion dos (romano), ochocientos setenta y seis, setecientos ochenta y seis y
demas aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones, y en toda la secuela de los juicios
laborales en que "GRUPO JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, SEA PARTE
O TERCERA INTERESADA;
D). SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO EN NOMBRE Y REPRESENTACION DE
LA SOCIEDAD, EN TERMINOS DEL ARTICULO NOVENO DE LA LEY GENERAL DE TITULOS Y
OPERACIONES DE CREDITO, ASI COMO ABRIR, OPERAR Y CERRAR CUENTAS DE LA SOCIEDAD
COMO INSTITUCIONES BANCARIAS Y CON INSTITUCIONES FINANCIERAS Y BURSATILES,
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TANTO DEL PAIS COMO DEL EXTRANJERO, EN MONEDA NACIONAL Y EN MONEDA EXTRANJERA,
DESIGNANDO A PERSONAS AUTORIZADAS PARA OPERAR DICHAS CUENTAS Y GIRAR CONTRA LAS
MISMAS;
E). OTORGAR Y REVOCAR PODERES EN TERMINOS DE LOS PARRAFOS A), B) Y C)
ANTERIORES, CON O SIN FACULTADES DE SUSTITUCION.
PERSONALIDAD DEL REPRESENTANTE DE "PRODENOB", SOCIEDAD ANONIYMA DE
CAPITAL VARIABLE.
EL LICENCIADO CARLOS ALEJANDRO DURAN LOERA, TITULAR DE LA NOTARIA NUMERO
ONCE DEL DISTRITO FEDERAL, CERTIFICA: Que a fin de acreditar su personalidad
---------
como representante de "PRODENOB", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, le fue
presentado por la senorita PATRICIA ANGELINA RIOS DEL PERAL, el siguiente
documento:
Escritura numero quince mil sesenta y nueve, de fecha doce de agosto de
mil novecientos noventa y tres, otorgada ante la fe del Licenciado Juan Vicente
Matute Ruiz, Titulalar de la Notaria Publica numero Ciento setenta y nueve, del
Distrito Federal, cuyo primer testimonio quedo debidamente inscrito en el
Registro Publico de la Propiedad y de Comercio del Distrito Federal, en el Folio
Mercantil numero ciento cincuenta y cuatro mil setecientos veinticinco, el dia
veinticuatro de agosto de mil
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novecientos noventa y tres. De dicho instrumento copio en su parte conducente lo
que sigue:
"....DE LA SESION DEL CONSEJO DE ADMINISTRACION PRIMERA.- OTORGAMIENTO
DE PODERES. Se resolvio otorgar en favor de la senorita PATRICIA ANGELINA RIOS
DEL PERAL, los poderes siguientes:
a). PLEITOS Y COBRANZAS. Poder general para pleitos y cobranzas, en los
terminos del primer parrafo del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil para el Distrito Federal, con inclusion de todas aquellas
facultades generales y especiales que requieran poder o clausula especial, en
los terminos del articulo dos mil quinientos ochenta y siete del mismo Codigo y
sus correlativos de los articulos dos mil quinientos cincuenta y cuatro y dos
mil quinientos ochenta y siete de los que rigen en todos los Estados de la
Republica Mexicana. El poder que se otorga podra ejercitarse ante toda clase de
personas y autoridades; ya sean federales, estatales, municipales,
empresas descentralizadas o de participacion estatal, administrativas,
militares, laborales y judiciales. Sin limitar la generalidad de lo anterior,
el presente poder otorga facultades expresas para intentar toda clase de juicios
y recursos y desistir de ellos, incluso del amparo; para formular posturas en
subastas, pujas y adjudicarse bienes en favor de la mandante; para presentar
denuncias y querellas, coadyuvar con el Ministerio Publico, constituirse en
parte civil y presenter toda clase de pruebas, otorgar el perdon del ofendido y
desistir de las querellas que a su nombre se hubieren presentado;
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celebrar convenios judiciales o extrajudiciales; someter juicios a la decision
de arbitros o arbitradores; pactar procedimientos convencionales; articular y
absolver posiciones; interrogar testigos; celebrar contratos individuales o
colectivos de trabajo. Las facultades anteriores, se mencionan solamente en
forma enunciativa, mas no limitativa.
b). ADMINISTRACION. Poder general para actos de administracion, en los
terminos del segundo parrafo del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil para el Distrito Federal y sus correlativos de los que rigen en
todos los Estados de la Republica Mexicana.
c). OPERACIONES FINANCIERAS Y TITULOS DE CREDITO. Facultad para
suscribir en nombre y representacion de la compania, los documentos necesarios
para celebrar operaciones financieras, asi como firmar toda clase de titulos de
credito, en los terminos del Articulo Noveno de la Ley General de Titulos y
Operaciones de Credito.
d). SUSTITUCION Y OTORGAMIENTO DE PODERES. Facultad para sustituir
total o parcialmente los poderes generales indicados en los incisos anteriores,
con o sin reserva de su ejercicio, asi como para revocar los poderes que
sustituya u otorgue.
l. CONSTITUCION. Por escritura publica numero cuarenta y cuatro mil
ochocientos setenta y seis, de fecha dieciseis de diciembre de mil novecientos
noventa y uno, otorgada ante la fe del senor Licenciado Carlos A. Yfarraguerri y
Villarreal, titular
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de la Notaria Publica numero veintiocho del Distrito Federal, e inscrita en el
Registro Publico de Comercio del Distrito Federal, en el Folio Mercantil numero
ciento cincuenta y cuatro mil setecientos veinticinco, con fecha doce de marzo
de mil novecientos noventa y dos, consta que previo permiso de la Secretaria de
Relaciones Exteriores numero nueve millones treinta y ocho mil quinientos
treinta y dos, expediente numero nueve mil ciento nueve millones treinta v siete
mil trescientos cuarenta y uno, de fecha veinte de septiembre de mil novecientos
noventa y uno, se constituyo por la comparecencia, de sus fundadores:
"PRODENOB", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
2. AUMENTO DE LA PORCION VARIABLE DEL CAPITAL SOCIAL. En Asamblea
General Extraordinaria de Accionistas celebrada el primero de diciembre de mil
novecientos noventa y dos, se acordo aumentar la porcion variable del capital
social en la cantidad de CUARENTA Y NUEVE MILLONES DE PESOS. Como consecuencia
de dicho aumento, el capital social actual alcanza la suma de total de CINCUENTA
MILLONES DE PESOS, de la que corresponde UN MILLON DE PESOS al capital
minimo fijo y CUARENTA Y NUEVE MILLONES DE PESOS a la porcion variable del
capital. No fue necesario reformar los Estatutos Sociales, en virtud de que el
aumento se llevo a cabo dentro de la porcion variable del capital que es
ilimitada.
4. ESTATUTOS SOCIALES EN LO CONDUCENTE Y EN VIGOR. Las disposiciones
estatutarias que la rigen y que tienen interes para el otorgamiento de la
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presente, son las siguientes: . . . ESTATUTOS - DENOMINACION - PRIMERA.- La
--------- ------------
sociedad se denominara "PRODENOB", a la cual se le agregaran siempre las
palabras "SOCIEDAD ANONIMA DE CAPITAL VARIABLE", o de sus abreviaturas "S.A. DE
C.V.".- O B J E T O S.- SEGUNDA.- Los objetos de la sociedad, seran los
-------------
siguientes: l. La fabricacion, compra, venta, comercio, importacion,
exportacion y distribucion, de cualquiera y todos los tipos de productos y
articulos permitidos por la Ley. 2. Proporcionar servicios en todas las areas
autorizadas por las leyes, asi como aceptar y conferir comisiones, mediaciones o
agencias para la realizacion de los fines sociales. 3. El uso, explotacion y
registro, por su cuenta o por cuenta de terceros, de marcas, nombres
comerciales, patentes, certificados de invencion y otros derechos de propiedad
intelectual. 4. Adquirir, enajenar, poseer, arrendar y en cualquier forma
obtener o conceder el uso y goce de todo tipo de bienes, sean inmuebles o
muebles, asi como derechos reales y personales necesarios para la ejecucion de
los objetos anteriores; en el entendido, sin embargo, de que la adquisicion de
inmuebles cumplira con todos los requisitos legales aplicables. 5. El
establecimiento u operacion de oficinas, sucursales y almacenes; asi como
cualquier actividad que pudiera ser necesaria para el logro de los objetos de la
sociedad. 6. La emision, suscripcion, endoso o garantia de todo tipo de
titulos de credito y obligaciones, ya sean asumidas por la sociedad o por
terceros, y la celebracion de toda clase de operaciones de credito. 7. La
adquisicion o enajenacion de todo tipo de acciones o partes sociaies en otras
empresas, asociaciones o sociedades. 8.
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La ejecucion de toda clase de contratos o actos juridicos, sean de naturaleza
civil, administrativa o mercantil, relacionados con los objetos anteriores.
D O M I C I L I O.-TERCERA.- El domicilio de la sociedad sera la Ciudad de
- -----------------
Mexico, Distrito Federal, pero la Asamblea de Accionistas, el Consejo de
Administracion, o en su caso el Administrador Unico, estaran facultados
expresamente para establecer agencias o sucursales dentro o fuera de la Repulica
Mexicana y para designar domicilios convencionales con propositos contractuales
determinados. D U R A C I O N CUARTA.- La duracion de la sociedad
---------------
sera de noventa y nueve anos, contados a partir de la fecha de firma de la
escritura constitutiva.- N A C I O N A L I D A D.- QUINTA.- La sociedad es
-----------------------
mexicana. "Todo extranjero que en el acto de la constitucion o en cualquier
tiempo ulterior, adquiera un interes o participacion social en la sociedad, se
obliga formalmente con la Secretaria de Relaciones Exteriores a considerarse por
ese simple hecho como mexicano, respecto de dicha participacion, asi como de los
bienes, derechos, concesiones, participaciones o intereses de que sea titular la
sociedad, o bien de los derechos y obligaciones que deriven de los contratos en
que sea parte la propia sociedad con autoridades mexicanas, y a no invocar, por
lo mismo, la proteccion de su gobierno, bajo la pena, en caso contrario, de
perder en beneficio de la Nacion, las participaciones que hubiere adquirido".
C A P I T A L.- SEXTA.- El capital de la sociedad sera variable. El capital
- -------------
minimo fijo sera UN MILLON DE PESOS, representado por UN MIL acciones
nominativas ordinarias, Serie "B" de libre
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suscripcion, con valor nominal de UN MIL PESOS MONEDA NACIONAL cada una,
totalmente suscritas y pagadas y sin derecho a retiro de la Clase I. El capital
maximo sera ilimitado, y estara representado po acciones nominativas, ordinarias
o preferentes de la Clase II, que tendran las caracteristicas que determinen las
Asambleas de Accionistas que aprueben su emision.
ES P R I M E R TESTIMONIO QUE SE EXPIDE PARA "COMERCIALIZADORA JAFRA",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE. COMO TITULO DE SU CONSTITUCION. ESTA
ESCRITO CON TINTA FIJA; COTEJADO Y VA EN VEINTIOCHO FOJAS UTILES. DOY FE.
MEXICO, DISTRITO FEDERAL, A OCHO DE ENERO DE MIL NOVECIENTOS NOVENTA Y
SEIS.
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INSTRUMENTO VEINTICUATRO MIL TRESCIENTOS TRES
LIBRO QUINIENTOS DIEZ
EN MEXICO, DISTRITO FEDERAL, A LOS NEUVE DIAS DEL MES DE FEBRERO DE MIL
NOVECIENTOS NOVENTA Y SEIS, CARLOS ALEJANDRO DURAN LOERA, Titular de la Notaria
numero ONCE del Distrito Federal, hago constar:
LA PROTOCOLIZACION DEL ACTA DE ASAMBLEA GENERAL EXTRAORDINARIA DE
ACCIONISTA de "COMERCIALIAZADORA JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
que otorga de senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, en su caracter de
Delegado Especial de la Asamblea celebrada con fecha cinco de enero de mil
novecientos noventa y seis, en la que se acordo entre otros, el cambio de
denominacion de la sociedad de "COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, a "JAFRA COSMETICS," SOCIEDAD ANONIMA DE CAPITAL VARIABLE, que
se consigna al tenor de los antecedentes y clausulas siguientes:
ANTECEDENTES
I. ESCRITURA CONSTITUTIVA.
a). ESCRITURA CONSTITUTIVA. Por escritura numero veintitres mil
----------------------
setecientos uno, de fecha cuatro de diciembre de mil novecientos noventa y
cinco, otorgada ante la fe del suscrito Notario, cuyo primer testimonio quedo
instrito en el Registro Publico de Comercio de esta Ciudad, en el Folio
Mercantil numero doscientos
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dos mil quinientos treinta y siete, el dia primero de febrero de mil novecientos
noventa y seis, por comparecencia de sus fundadores y previo el permiso otorgado
por la Secretaria de Relaciones Exteriores, se constituyo la Sociedad Mercantil
en forma de Anonima de capital variable, bajo la denominacion de
"COMERCIALIZADORA JAFRA", con domicilio en Mexico, Distrito Federal, clausula de
admision de extranjeros, duracion de CIENTO CINCUENTA ANOS y capital social de
CINCUENTA MIL NEUVOS PESOS, MONEDA NACIONAL, (actualmente CINCUENTA MIL PESOS,
MONEDA NACIONAL); de dicho instrumento copio en su parte conducente como sigue:
" ARTICULO III. La sociedad tendra por objeto: a). El ejercicio del comercio
en general, incluyendo la manufactura, comercio, y distribucion de toda clase de
articulos para el cuidado e higiene personal, para la salud y belleza, productos
de tocador, perfumes y cosmeticos, articulos de joyeria, bisuteria y adorno
personal, asi como cualesquiera otros productos relacionados con el cuidado,
arreglo y vestido de la persona; b). Fabricar, exportar, importar, adquirir,
enajenar, arrendar, subarrendar, dar y tomar en comodato todo tipo de
mercaderias, equipos, maquinaria, implementos y efectos necesarios para realizar
las actividades descritas en el parrafo a) que antecede, asi como para la
realizacion de cualquier otra actividad mercantil; c). Adquirir acciones,
partes sociales, certificados de participacion y constancias de interes que
acrediten inversion en cualquier tipo de empresa, sociedad, organizacion y
asociacion, tanto del pais como del extranjero; d). Vender, transferir,
entragar y en cualquier otra forma permitida por la ley
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negociar con acciones, partes sociales, certificados de participacion y
constancias de interes que acrediten inversion en cualquier tipo de empresas,
sociedad organizacion y asociacion, tanto del pais como del extranjero; e)
Recibir de otras sociedades y personas, asi como proporcionar a otras sociedades
y personas todo tipo de servicios, tales como servicios administrativos,
financerios, legales, de mercadeo y de tesoreria, incluyendo la preparacion de
reportes y estados financieros, presupuestos, programas y manuales de operacion,
asi como la evaluacion de resultados operacionales, evaluacion de productividad
y posibilidades de financiamiento, incluyendo analisis de disponibilidad de
capital; f). Establecer, arrendar, subarrendar, operar y poseer en cualquier
forma permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas,
almacenes, tiendas y demas establecimientos necesarios para la realizacion del
objeto social, asi como adquirir, enajenar y gravar toda clase de negociaciones
industriales y comerciales; incluyendo acciones, participaciones e instrumentos
por ellas emitidos; g). Solicitar, obtener, registrar, comprar, utilizar ceder o
en cualquier otra forma disponer y adquirir marcas, nombres comerciales,
derechos de autor, patentes y derechos sobre invenciones y procesos; h).
Establecer sucursales, subsidiarias, agencias y oficinas de representacion en
Mexico y en el extranjero; i). Representar y actuar como agente, en la Republica
Mexicana y en el extranjero, de empresas industriales, comerciales y de
servicios, sean nacionales o extranjeras; j). Adquirir, poseer, arrendar,
subarrendar, comprar, vender, permutar, donar y negociar en cualquier otra forma
permitida por la ley con bienes
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muebles, inmuebles, incluyendo la adquisicion, establecimiento y operacion de
laboratorios de investigacion; k). Proporcionar toda clase de servicios
tecnicos, administrativos, de asesoria y de supervision a empresas industriales
y comerciales, tanto en Mexico como en el extranjero, y recibir dichos
servicios; l). Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales; m). Dar y tomar dinero en prestamo con o sin
garantias de cualquier tipo, emitir bonos, obligaciones y demas titulos de
credito con la supervision e intervencion de las instituciones que en cada caso
se requiera de acuerdo con la ley; n). Garantizar obligaciones de terceros; y
o). En general, realizar todo clase de actos y celebrar toda clase de contratos,
sean civiles o mercantiles, permitidos por la ley. ASAMBLEAS GENERALES DE
----------------------
ACCIONISTAS ARTICULO XIX. Las Asambleas Generales de Accionistas, se celebraran
- ------------------------
en el domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas
para tratar cualquiera de los asunto incluidos en el articulo ciento ochenta y
dos de la Ley General Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias. ARTICULO XX. Las convocatorias para Asambleas de Accionistas deberan
ser expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion sea el caso, o, en la medida en que lo permita la ley,
por el Comisario o Comisarios. Sin embargo, los accionistas que representen
cuando menos el treinta y tres por ciento del capital social podran solicitar
por escrito, en cualquier tiempo, que el Administrador
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Unico o el Consejo de Administracion, segun sea el caso, o los Comisarios,
convoquen a Asamblea General de Accionistas, para tratar los asuntos
especificiados en su solicitud. Cualquier accionistas titular de una o mas
acciones tendra el mismo derecho en cualquiera de los casos senalados en le
articulo ciento ochenta y cinco de la Ley General de Sociedades
Mercantiles. Si el Administrador Unico, el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o los Comisarios, no expidieren la
convocatoria dentro de los quince dias siguientes a la fecha de la solicitud, un
Juez de lo Civil o de Distrito del domicilio de la sociedad hara la convocatoria
a peticion de cualquier accionista interesado, debiendo exhibir sus acciones
para tal efecto, de conformidad con lo previsto por la Ley. ARTICULO XXI. Las
convocatorias para Asambleas se publicaran en el Diario Oficial de la Federacion
o en uno de los diarios de mayor circulacion del domicilio de la sociedad con
por lo menos siete dias de anticipacion a la fecha fijada para la Asamblea.
Ademas, las convocatorias se notificaran por carta a los accionistas, que se
enviaran por correo certificado, con anterioridad a la fecha de publicacion de
la convocatoria a las direcciones que aparezcan en el libro de Registro de
Acciones de la sociedad. Tratandose de accionistas domiciliados en el
extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran el Orden del Dia y estaran firmadas por quien las
expida. ARTICULO XXII. Las Asambleas podran celebrarse sin previa publiciacion
de convocatoria si el capital social esta representado en su totalidad y
participa al momento de la votacion.
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ARTICULO XXIII. Solo los accionistas que aparezcan inscritos en el Libro de
Registro de Acciones de la sociedad como titulares de una o mas acciones seran
emitidos en Asambleas Generales de Accionistas. ARTICULO XXIV. Los accionistas
podran ser representados en Asambleas por la persona o personas que designen
mediante carta poder firmada ante dos testigos, o por cualqier otra forma de
mandato conferido de acuerdo con la ley. ARTICULO XXV. Las actas de Asambleas se
transcribiran a un libro especialmente autorizado y deberan ser firmadas por las
personas que hayan fungido como Presidente y Secretario de la Asamblea, asi como
por los Comisarios presentes y por los accionistas o representantes de
accionistas que desearen firmar. ARTICULO XXVI. Las Asambleas seran presididas
por el Administrador Unico o por el Presidente del Consejo de Administracion
segun sea el caso. Sin embargo, en caso de que quien desempene alguno de los
cargos mencionados estuviere ausente, la Asamblea en cuestion sera presidida por
la persona que se designe por resolucion de la propia Asamblea. El Secretario
del Consejo de Administracion actuara como Secretario de las Asambleas Generales
de Accionistas; sin embargo, en su ausencia, actuara como tal la persona
designada por resolucion de la Asamblea. ARTICULO XXVII. Las Asambleas Generales
Ordinarias se celebraran cuando menos una vez al ano dentro de los cuatro meses
siguientes al cierre de cada ejercicio social. Ademas de los asuntos
especificiados en el Orden del Dia, la Asamblea Ordinaria Anual debera discutir,
aprobar o modificar el informe del Consejo de Administracion que incluya los
informes y estados financieros a
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que se refiere el encunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles, tomando en cuenta el informe del Comisario o
Comisarios, y adoptar las medidas que juzgue oportunos; designar al Admnistrador
Unico o a los miembros del Consejo de Administracion, segun sea el caso, y al
Comario o Comisarios, asi como determinar las remuneraciones al Administrador
Unico o a los miembros del Consejo de Administracion y a los Comisarios.
ARTICULO XXVIII. Para que sean validas las Asambleas Generales Ordinarias de
Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de los acciones
representativas del capital social. ARTICULO XXIX. Para que sean validas las
Asambleas Generales Extraodinarias de Accinostas celebradas en virtud de primera
convocatoria, deberan renir, por lo menos, la prescencia del setenta y cinco por
ciento de las acciones representativas del capital social. En caso de segundo o
ulterior convoctoria, la Asamblea se considera legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social. ARTICULO XXX. Tratandose de Asambleas Generales Ordinarias,
las resoluciones en ellas adoptadas seran validas cuando se emita voto favorable
por la mayoria de la acciones presentes, siempre y cuando hubiere existido
quorum de presencia en los terminos del articulo XXVIII (veintiocho romano) de
los estatutos sociales. En el caso de Asambleas Generales Extraordinarias, sus
resoluciones seran validas cuando sean adoptadas por el voto favorable de las
acciones que representen, cuando menos, el
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cincuenta por ciento de las acciones que integren el capital social. ARTICULO
XXXI. Conforme a lo dispuesto en el articulo ciento setenta y ocho de la Ley
General de Sociedades Mercantiles, podran validamente los accionistas adoptar
resoluciones sin la celebracion de Asamblea, siempre y cuando tales resoluciones
consten por escrito firmado por todos los accionistas titulares de la totalidad
de las acciones con derecho a voto representativas del capital de la sociedad.
En todo caso sera responsabilidad de quien desempene el cargo de Secretario del
Consejo de Administracion cerciorarse de la autenticidad de tales escritos, de
su formalizacion y de su conservacion."
II. ACTA DE ASAMBLEA QUE SE PROTOCOLIZA. Los accionistas de
"COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, se reunieron el
dia cinco de enero de mil novecientos noventa y seis, con el objeto de celebrar
una Asamblea General Extraordinaria de Accionistas, la cual obra asentada de la
foja dos a la seis, del libro de actas de Asambleas de la Sociedad.
A continuacion transcribo en lo conducente el acta de Asamblea mencionada
que es del tenor literal siguiente:
"En el Distrito Federal, Mexico, a las 10:00 del 5 de enero de 1996, se
reunieron en el domicilio social de COMERCIALIZADORA JAFRA, S.A. DE C.V., el
senor Ramiro Rangel Sanchez, en representacion de Grupo Jafra, S.A. de C.V. y la
senorita Araceli Lugo Vega, en representacion de Prodenob, S.A. de C.V., con
objeto de celebrar ASAMBLEA GENERAL EXTRAORDINARIA DE ACCIONISTAS DE
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COMERCIALIZADORA JAFRA, S.A. DE C.V., a la que fueron previa y oportunamente
convocados. Estuvieron tambien presentes los senores Alberto Mena Adame,
Secretario del Consejo de Administracion de la sociedad y Fernando Holguin
Maillard, Comisario de la misma.
Por designacion unanime de los representantes de los accionistas
presentes fungio como Presidente de la Asamblea el senor Ramiro Rangel Sanchez y
como Secretario el del propio Consejo de Administracion, senor Alberto Mena
Adame.
El Presidente designo escrutador a la senorita Araceli Lugo Vega, quien,
despues de aceptar su cargo y de revisar los instrumentos conteniendo los
mandatos de los representantes de los accionistas y el Libro de Registro de
Acciones que la sociedad lleva en terminos de los dispuesto por e1 articulo 128
de la Ley General de Sociedades Mercantiles, certifico, en union del Secretario
y del Comisario, que se encontraban debidamente representadas en la Asamblea la
totalidad de las acciones de la sociedad actualmente en circulacion,
distribuidas en la siguiente forma:
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ACCIONISTA ACCIONES VOTOS
- ---------- -------- -----
SERIE "A"
---------
Grupo Jafra, S.A. de C.V.
representada por el senor
Ramiro Rangel Sanchez 49 49
Prodenob, S.A. de C.V.
representada por la senorita
Araceli Lugo Vega 1 1
-- --
T O T A L 50 50
-- --
En virtud de encontrarse debidamente representada en la Asamblea la
totalidad de las acciones emitidas por la sociedad actualmente en circulacion,
el Presidente declaro la misma legalmente instalada, no obstante no haberse
publicado la convocatoria respectiva, con fundamento en los articulo 188 de la
Ley General de Sociedades Mercantiles y vigesimo segundo de los estatutos de la
sociedad.
La Asamblea, por unanimidad de votos, aprobo la declaratoria anterior y
procedio a desahogar los asuntos contenidos en el siguiente.
ORDEN DEL DIA
I. Cambio de la denominacion social.
II. Designacion de delegados para la formalizacion de las resoluciones
adoptadas por la Asamblea.
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PUNTO UNO. En desahogo del primer punto del Orden del Dia el Presidente
expuso a la Asamblea las razones por las que se estima conveniente el cambio de
denominacion de 1a sociedad de COMERCIALIZADORA JAFRA, S.A. DE C.V. A JAFRA
COSMETICS, S.A. DE C.V., con efectos a partir del 5 de enero de 1996.
El presidente agrego que, en caso de resolverse formalmente la
modificacion propuesta, procede reformar el articulo primero de los estatutos
sociales en los terminos de proyecto de texto de dicho articulo que circulo
previamente entre los presentes, al cual dio lectura.
Continuo exponiendo el senor Ramiro Rangel Sanchez que, por su parte, la
Secretaria de Relaciones Exteriores otorgo el 6 de diciembre de 1995 el permiso
9035587 autorizando e1 cambio de denominacion de la sociedad a JAFRA COSMETICS,
S.A. DE C.V.
Despues de considerar lo anterior, por el voto unanime de la totalidad de
las 50 (cincuenta) acciones representativas del capital social de
COMERCIALIZADORA JAFRA, S.A. DE C.V., las que representan el 100% (cien por
ciento) de dicho capital social, se adoptaron las siguientes.
RESOLUCIONES
"1. Con efectos a partir del 5 de enero de 1996 se resuelve el cambio de
denominacion de la sociedad COMERCIALIZADORA JAFRA, a JAFRA
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COSMETICS, denominacion social que ira seguida de las palabras "SOCIEDAD ANONIMA
DE CAPITAL VARIABLE", o de su abreviatura "S.A. DE C.V."."
"2. Con efectos a partir del 5 de enero de 1996 se modifica el articulo
primero de los estatutos sociales de COMERCIALIZADORA JAFRA, S.A. DE C.V., para
quedar redactado en los siguientes terminos:
"ARTICULO 1. La denominacion de la sociedad es "JAFRA COSMETICS", y
----------
debera ir siempre seguida de las palabras "SOCIEDAD ANONIMA DE CAPITAL VARIABLE"
o de su abreviatura "S.A. de C.V."."
PUNTO DOS. En desahogo del segundo punto del Orden del Dia, el
Presidente hizo notar a los presentes la necesidad de designar a la persona o
personas que, en representacion de la sociedad, habran de comparecer ante
Notario Publico par protocolizar el acta que de esta Asamblea se levante,
proponiendo se designe para tales fines a la senorita Elisa Iglesias Alvarez y a
los senores Luis Alfonso Cervantes Muniz y Ramiro Rangel Sanchez, para actuar
conjunta o separadamente, indistintamente.
Despues de comentar lo anterior, por el voto unanime de la totalidad de
las acciones en que se divide el capital social de COMERCIALIZADORA JAFRA, S.A.
DE C.V., se adopto la siguiente.
RESOLUCION
"Se designan delegados de la sociedad a la senorita Elisa Iglesias
Alvarez y a los senores Luis Alfonso Cervantes Muniz y Ramiro Rangel Sanchez
para que,
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conjunta o separademente, indistintamente, cualquiera de ellos comparezca ante
el Notario Publico de su eleccion a protocolizar el acta que de esta Asamblea se
levante, asi como para que otorgue todos los documentos que fueren necesarios o
convenientes para dar cumplimiento y formalizar las resoluciones adoptadas por
esta Asamblea, y para que realice cuantos actos se requieran para que tales
resoluciones cobren plena vigencia y surtan todos sus efectos".
A continuacion el senor Alberto Mena Adame, en su caracter de Secretario
de la Asamblea, hizo constar que durante el desarrollo de la misma y al momento
de adoptarse todas y cada una de las resoluciones contenidas en esta acta,
estuvieron debidamente representadas y participaron la totalidad de las acciones
en que se divide el capital social de COMERCIALIZADORA JAFRA, S.A. DE C.V.,
actualmente en circulacion.
Se anexan al expediente de esta acta, bajo la LETRA "A", las cartas poder
---------
con las que los representantes de los accionistas acreditaron su representacion.
A continuacion se suspendio la Asamblea para la redaccion de esta acta,
la cual fue posteriormente leida y aprobada por todos los presentes, y firmada
por todos los que en ella intervinieron.
Se levanto la Asamblea a las 11:00 del 5 de enero de 1996.
Ramiro Rangel Sanchez - en representacion de Grupo Jafra, S.A. de C.V. -
Presidente - Alberto Mena Adame - Secretario - Araceli Lugo Vega - en
representacion
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de Prodenob, S.A. de C.V. - Fernando Holguin Maillard - Comisario-Cuatro firmas
ilegibles."
El compareciente declara de manera expresa y bajo protesta de decir
verdad, que el texto de la Asamblea antes transcrita y las firmas que la calzan,
son autenticas.
III. PERMISO DE RELACIONES EXTERIORES. "COMERCIALIZADORA JAFRA",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, solicito y obtuvo de la Secretaria de
Relaciones Exteriores el permiso para cambiar su denominacion por la de "JAFRA
COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, dicho permiso se agrega al
apendice en el legajo marcado con el numero de este instrumento bajo la letra
"A"; el cual copio a continuacion y es del tenor literal siguiente:
PERMISO DE LA SECRETARIA DE RELACIONES EXTERIORES
"Al margen superior izquierdo: Un Sello con el Escudo Nacional. Fuera
del Sello: SECRETARIA DE RELACIONES EXTERIORES - MEXICO. Al margen superior
derecho: PERMISO 09035587 - EXPEDIENTE 9509023626 - FOLIO 60360. Al centro: En
atencion a la solicitud presentada por el C. LUIS ALFONSO CERVANTES MUNIZ en
representacion de COMERCIALIZADORA JAFRA, SA DE CV - Esta Secretaria concede
permiso para cambiar la denominacion. DE: COMERCIALIZADORA JAFRA, SA DE CV. A:
JAFRA COSMETICS, SA DE CV.
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CONCEDIDO a la solicitante para reformar sus Estatutos Sociales en los terminos
arriba especificados, en la inteligencia de que deberan contener la clausula a
que alude el articulo 30 o el convenio que senala el articulo 31 del Reglamente
de la Ley para Promover la Inversion Mexicana y Regular la Inversion Extranjera
segun sea el caso. El Notario o Corredor Publico ante quien se haga uso de este
permiso, debera dar aviso a la Secretaria de Relaciones Exteriores dentro de los
noventa dias habiles a partir de la fecha de autorizacion de la escritura
Publica correspondiente. Lo anterior se comunica con fundamento en los articulos
27, Fraccion I, de la Constitucion Politica de los Estados Unidos Mexicanos, 16
de la Ley de Inversion Extranjera y en los terminos del articulo 28 Fraccion V
de la Ley Organica de la Administracion Publica Federal. Este permiso dejara de
surtir efectos si no se hace uso del mismo dentro de los 90 dias habiles
siguientes a la fecha de su expedicion, y se otorga sin perjuicio de lo
dispuesto por el articulo 91 de la Ley de la Propiedad Industrial. TLATELOLCO
D.F., a 06 de Diciembre de 1995. SUFRAGIO EFECTIVO. NO REELECCION. EL DIRECTOR
DE PERMISOS DE ART. 27 CONSTITUCIONAL. LIC. CRISTINA ALCALA ROSETE. Rubrica. Un
sello fechador. P.A-2. 0778".
EXPUESTO LO QUE ANTECEDE, el compareciente otorga las siguientes:
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C L A U S U L A S
PRIMERA. El senor Licenciado LUIS ALFONSO CERVANTES MUNLZ, en
representacion de "COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, como Delegado Especial de la Asamblea de fecha cinco de enero de mil
novecientos noventa y seis, deja PROTOCOLIZADA para todos los efectos legales el
Acta de la referida Asamblea, la cual ha quedado relacionada en el antecedente
II (segundo romano) del presente instrumento.
SEGUNDA. De conformidad con lo acordado en la Asamblea que se
protocoliza, "COMERCIALIZADORA JAFRA," SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada por el Licenciado LUIS ALFONSO CERVANTES MUNIZ, en su caracter de
Delegado Especial de la Asamblea, por el presente instrumento otorga:
El cambio de denomacion de la sociedad de "COMERCIALIZADORA JAFRA",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A "JAFRA COSMETICS", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, reformandose al efecto el articulo I (primero) de los
Estatutos Sociales, para quedar redactado como sigue:
"ARTICULO 1. La denominacion de la sociedad es "JAFRA COSMETICS", y
----------
debera ir siempre seguida de las palabras "SOCIEDAD ANONIMA DE CAPITAL VARIABLE"
o de su abreviatura "S.A. DE C.V." ."
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P E R S O N A L I D A D
El senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, acredita la
personalidad que ostenta, declarando de manera expresa y bajo protesta de decir
verdad, que no le ha sido revocada, suspensa ni limitada en forma alguna, asi
como la existencia y capacidad legales de su representada, con lo relacionado e
inserto en los antecedentes de este instrumento.
G E N E R A L E S
El compareciente manifesto de manera expresa y bajo protesta de decir
verdad, por sus generales ser: mexicano por nacimiento e hijo de padres
mexicanos, originario de Mexico, Distrito Federal, donde nacio el dia dieciseis
de noviembre de mil novecientos cincuenta y cinco, casado, abogado, con
domicilio en la calle Campos Eliseos numero trescientos cuarenta y cinco, primer
piso, Colonia Chapultepec Polanco, Distrito Federal.
YO, EL NOTARIO CERTIFICO:
I. Que conozco personalmente al compareciente y lo conceptuo legalmente
capacitado para la celebracion de este acto.
II. Que lo relacionado e inserto concuerda fielmente con sus originales
a los que me remito y he tenido a la vista.
III. Que devuelvo al compareciente el libro de actas exhibido, sellando
la primera de las fojas en que se contiene el acta protocolizada en lo
conducente.
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IV. Que leido este instrumento al compareciente y sin necesidad de
explicarle el valor y las consecuencias legales de su contenido por ser perito
en la materia, manifesto su conformidad y firma el dia de su otorgamiento.
F I R M A : LUIS ALFONSO CERVANTES MUNIZ - Rubrica.
ANTE MI, CARLOS ALEJANDRO DURAN LOERA - Rubrica. El sello de Autorizar
"LIC. CARLOS ALEJANDRO DURAN LOERA. NOTARIA No. 11. MEXICO, DISTRITO FEDERAL.
ESTADOS UNIDOS MEXICANOS".
ACTO CONTINUO, AUTORIZO DEFINITIVAMENTE ESTE INSTRUMENTO FOR HABERSE
CUMPLIDO LOS REQUISITOS LEGALES.
CARLOS ALEJANDRO DURAN LOERA - Rubrica. El sello de Autorizar "LIC.
CARLOS ALEJANDRO DURAN LOERA. NOTARIA No. 11. MEXICO, DISTRITO FEDERAL .
ESTADOS UNIDOS MEXICANOS".
ES PRIMER TESTIMONIO QUE SE EXPIDE PARA "JAFRA COSMETICS", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, COMO INTERESADA. ESTA ESCRITO CON TINTA FIJA, COTEJADO Y VA
EN OCHO FOJAS UTILES. DOY FE.
MEXICO, DISTRITO FEDERAL, A NUEVE DE FEBRERO DE MIL NOVECIENTOS NOVENTA Y
SEIS.
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HOJA ANEXA UNICA Y EXCLUSIVAMENTE PARA EL SELLO DEL REGISTRO PUBLICO DE COMERCIO
DE LA ESCRITURA NUMERO VEINTICUATRO MIL TRESCIENTOS TRES.
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LIBRO NUMERO CIENTO CUARENTA Y UNO
ESCRITURA NUMERO (4,454) CUATRO MIL CUATROCIENTOS CINCUENTA Y CUATRO.
EN MEXICO, DISTRITO FEDERAL, a los tres dias del mes de octubre de mil
novecientos noventa y seis, Yo, el Licenciado CARLOS ANTONIO REA FIELD, titular
de la Notaria ciento ochenta y siete del Distrito Federal, hago constar que ante
mi comparece: el senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, en su caracter
de Delegado Especial de "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
y expone que formaliza la PROTOCOLIZACION PARCIAL DE UN ACTA DE ASAMBLEA GENERAL
ORDINARIA Y EXTRAORDINARIA, celebrada por los accionistas de la expresada
Sociedad, el dia treinta y uno mayo de mil novecientos noventa y seis, que se
contiene en los antecedentes y clausulas siguientes:
A N T E C E D E N T E S
I. ESCRITURA CONSTITUTIVA. Por escritura numero veintitres mil
setecientos uno, de fecha cuatro de diciembre de mil novecientos noventa y
cinco, otorgada ante el Licenciado Carlos Alejandro Duran Loera, titular de
la Notaria once del Distrito Federal, inscrito su primer testimonio en el
Registro Publico de la Propiedad y de Comercio de esta ciudad, el primero de
febrero de mil novecientos noventa y seis, en el folio mercantil numero
doscientos dos mil quinientos treinta y siete, previo permiso concedido por la
Secretaria de Relaciones Exteriores marcado con el numero cero nueve
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millones veinticuatro mil cuatrocientos ochenta y cinco, expediente numero nueve
mil quinientos nueve millones veintitres mil seiscientos veintiseis, se hizo
constar el contrato de Sociedad, en virtud del cual se constituyo
"COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, con domicilio en
el Distrito Federal, una duracion de CIENTO CINCUENTA anos, capital fijo sin
derecho a retiro de CINCUENTA MIL NUEVOS PESOS, Moneda Nacional, actualmente
CINCUENTA MIL PESOS, Moneda Nacional, con clausula de admision de extraneros y
el objeto social que consta en el instrumento que se viene relacionando, del
cual en lo conducente copio lo siguiente: "....ESTATUTOS. NOMBRE, DOMICILIO,
OBJETO Y DURACION. ARTICULO I. La denominacion de la sociedad es
"COMERCIALIZADORA JAFRA" y debera ir siempre seguida de las palabras "SOCIEDAD
ANONIMA DE CAP'ITAL VARIABLE" o de su abreviatura "S.A. de C.V."....ARTICULO
III. La sociedad tendra por objeto: a). El ejercicio del comercio en general,
incluyendo la manufactura, comercio y distribucion de toda clase de articulos
para el cuidado e higiene personal, para la salud y belleza, productos de
tocador, perfumes y cosmeticos, articulos de joyeria, bisuteria y adorno
personal, asi como cualesquiera otros productos relacionados con el cuidado,
arreglo y vestido de la persona; b). Fabricar, exportar, importar, adquirir,
enajenar, arrendar, subarrendar, dar y tomar en comodato todo tipo de
mercaderias, equipos, maquinaria, implementos y efectos necesarios para realizar
las actividades descritas en el parrafo a) que antecede, asi como
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para la realizacion de cualquier otra actividad mercantil; c). Adquirir
acciones, partes sociales, certificados de participacion y constancias de
interes que acrediten inversion en cualquier tipo de empresa, sociedad,
organizacion y asociacion, tanto del pais como del extranjero; d). Vender,
transferir, entregar y en cualquier otra forma permitida por la ley negociar con
acciones, partes sociales, certificados de participacion y constancias de
interes que acrediten inversion en cualquier tipo de empresas, sociedad
organizacion y asociacion, tanto del pais como del extranjero; e). Recibir de
otras sociedades y personas, asi como proporcionar a otras sociedades y personas
todo tipo de servicios, tales como servicios administrativos, financieros,
legales, de mercadero y de tesoreria, incluyendo la preparacion de reportes y
estados financieros, presupuestos, programas y manuales de operacion, asi como
la evalucion de resultados operacionales, evaluacion de productividad y
posibilidades de financiamiento, incluyendo analisis de disponibilidad de
capital; f). Establecer, arrendar, subarrendar, operar y poseer en cualquier
forma permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas,
almacenes, tiendas y demas establecimientos necesarios para la realizacion del
objeto social, asi como adquirir, enajenar y gravar toda clase de negociaciones
industriales y comerciales; incluyendo acciones, participaciones e instrumentos
por ellas emitidos; g). Solicitar, obtener, registrar, comprar, utilizar, ceder
o en cualquier otra forma disponer y adquirir marcas, nombres comerciales,
derechos de autor, patentes y derechos sobre invenciones y procesos; h).
Establecer sucursales, subsidiarias, agencias y oficinas de representacion en
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Mexico y en el extranjero; i). Representar y actuar como agente, en la Republica
Mexicana y en el extranjero, de empresas industriales, comerciales y de
servicios, sean nacionales o extranjeras; j). Adquirir, poseer, arrendar,
subarrendar, comprar, vender, permutar, donar y negociar en cualquier otra forma
permitida por la ley con bienes muebles, inmuebles, incluyendo la adquisicion,
establecimiento y operacion de laboratorios de investigacion; k). Proporcionar
toda clase de servicios tecnicos, administrativos, de asesoria y de supervision
a empresas industriales y comerciales, tanto en Mexico como en el extranjero, y
recibir dichos servicios; l). Proporcionar y recibir servicios de maquila y de
fabricacion o procesamiento de materiales a y de toda clase de entidades y
negocios industriales y comerciales; m). Dar y tomar dinero en prestamo con o
sin garantias de cualquier tipo, emitir bonos, obligaciones y demas titulos de
credito con la supervision e intervencion de las instituciones que en cada case
se requiera de acuerdo con la ley; n). Garantizar obligaciones de terceros; y
o). En general, realizar toda clase de actos y celebrar toda clase de contratos,
sean civiles o mercantiles, permitidos per la ley .... ASAMBLEAS GENERALES DE
ACCIONISTAS. ARTICULO XIX. Las Asambleas Generales de Accionistas, se celebraran
en el domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas
para tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y
dos de la Ley General Sociedades (asi) Mercantiles. Todas las demas Asambleas
seran Ordinarias. ARTICULO XX. Las convocatorias para Asambleas de Accionistas
deberan ser
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expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion sea el caso, o, en la medida en que lo permita la ley,
por el Comisario o Comisarios. Sin embargo, los accionistas que representen
cuando menos el treinta y tres por ciento del capital social podran solicitar
por escrito, en cualquier tiempo, que el Administrador Unico o el Consejo de
Administracion, segun sea el caso, o los Comisarios, convoquen a Asamblea
General de Accionistas, para tratar los asuntos especificados en su solicitud.
Cualquier accionistas (asi) titular de una o mas acciones tendra el mismo
derecho en cualquiera de los cases senalados en el articulo ciento ochenta y
cinco de la Ley General de Sociedades Mercantiles. Si el Administrador Unico,
el Presidente o el Secretario del Consejo de Administracion, segun sea el case,
o los Comisarios, no expidieren la convocatoria dentro de los quince dias
siguientes a la fecha de la solicitud, un Juez de lo Civil o de Distrito del
domicilio de la sociedad hara la convocatoria a peticion de cualquier accionista
interesado, debiendo exhibir sus acciones para tal efecto, de conformidad con lo
previsto por la Ley. ARTICULO XXI. Las convocatorias para Asambleas se
publicaran en el Diario Oficial de la Federacion o en uno de los diarios de
mayor circulacion del domicilio de la sociedad con por lo menos siete dias de
anticipacion a la fecha fijada para la Asamblea. Ademas, las convocatorias se
notificaran por carta a los accionistas, que se enviaran por correo certificado,
con anterioridad a la fecha de publicacion de la convocatoria a las direcciones
que aparezcan en el libro de Registro de Acciones de la sociedad. Tratandose de
accionistas
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domiciliados en el extranjero, dichas cartas se enviaran por correo
aereo certificado. Las convocatorias contendran el Orden del Dia y estaran
firmadas por quien las expida. ARTICULO XXII. Las Asambleas podran celebrarse
sin previa publicacion de convocatoria si el capital social esta representado en
su totalidad y participa al momento de la votacion. ARTICULO XXIII. Solo los
accionistas que aparezcan inscritos en el Libro de Acciones de la sociedad como
titulares de una o mas acciones seran emitidos en Asambleas Generales de
Accionistas. ARTICULO XXIV. Los accionistas podran ser representados en
Asambleas por la persona o personas que designen mediante carta poder firmada
ante dos testigos, o por cualqier (asi) otra forma de mandato conferido de
acuerdo con la ley. ARTICULO XXV. Las actas de Asambleas se transcribiran a un
libro especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por lo Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar. ARTICULO XXVI. Las Asambleas seran presididas por el Administrador Unico
o por el Presidente del Consejo de Administracion segun sea el caso. Sin
embargo, en caso de que quien desempene alguno de los cargos mencionados
estuviere ausente, la Asamblea en cuestion sea presidida por la persona que se
designe por resolucion de la propria Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asembleas Generales de
Accionistas; sin embargo, en ausencia, actuara como tal la persona designada por
resolucion de la Asamblea. ARTICULO XXVII. Las Asambleas
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Generales Ordinarias se celebraran cuando menos una vez al ano dentro de los
cuatro meses siguientes al cierre de cade ejercicio social. Ademas de los
asuntos especificados en el Orden del Dia, la Asamblea Ordinaria Anual debera
discutir, aprobar o modificar el informe del Consejo de Administracion que
incluya los informes y estados financieros a que se refiere el enunciado general
de articulo ciento setenta y dos de la Ley General de Sociedades Mercantiles,
tomando en cuenta el informe del Comisario o Comisarios, y adoptar las medidas
que juzgue oportunos; designar al Administrador Unico o a los miembros del
Consejo de Administracion, segun sea el caso, y al Comisario o Comisarios, asi
como determinar las remuneraciones al Administrador Unico o a los miembros del
Consejo de Administracion y a los Comisarios. ARTICULO XXVIII. Para que sean
validas las Asambleas Generales Ordinarias de Accionistas celebradas en virtud
de primera o ulterior convocatoria deberan reunir la presencia de por lo menos,
el cincuenta por ciento de los (asi) acciones representativas del capital
social. ARTICULO XXIX. Para que sean validas las Asambleas Generales
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan renir (asi), por lo menos, la presencia del setenta y cinco por ciento
de las acciones representativas del capital social. En caso de segunda o
ulterior convocatoria, la asembla se considera legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social. ARTICULO XXX. Tratandose de Asambleas Generales Ordinarias,
las resoluciones en ellas adoptadas seran validas cuando se emita
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voto favorable por la mayoria de las acciones presentes, siempre y cuando
hubiere existido quorum de presencia en los terminos del articulo XXVIII
(veintiocho romano) de los estatutos sociales. En el caso de Asambleas Generales
Extraordinarias, sus resoluciones seran validas cuando sean adoptadas por el
voto favorable de las acciones que representen, cuando menos, el cincuenta por
ciento de las acciones que integren el capital social. INFORMACION FINANCIERA.
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de cada
ejercicio social, el administrador Unico o el Consejo de Administracion, en su
caso, formulara los siguientes estados financieros, los que deberan contener
toda la informacion que sea necesaria para reflejar el estado que guarda la
situacion financiera y operativa de la socieadad, en terminos del enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles: a) Estado de situacion financiera a la fecha de cierre del
ejercicio social; b) Estado que muestra debidamente explicados y clasificados
los resultados de la socieded durante el ejercicio; c) Estado que muestre los
cambios en la situacion financiera ocurridos durante el ejercicio social; d)
Estado que muestre los cambios en las partidas que integran el capital contable
ocurridos durante el ejercicio social; y e) Las notas complementarias o
aclaratorias a los estados financieros anteriores. ARTICULO XXXIII. Los estados
financieros, junto con los documentos justificativos, deberan ser entregados al
Comisario o Comisarios con un mes de anticipacion, cuando menos, a la fecha
fijada para la Asamblea General Anual Ordinaria de Accionistas que sea convocada
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para resolver sobre los mismos. ARTICLUO XXXIV. Dentro de los quince dias
siguientes a la fecha en que les hayan sido entregados los estados financieros,
los Comisarios deberan entregar al Administrador Unico o al Consejo de
Administracion, segun sea el caso, un informe para los accionistas respecto de
la veracidad, suficiencia y razonabilidad de la informacion que les haya sido
presentada por el Consejo de Administracion o por el Administrador Unico. Dichos
documentos quedaran en poder del Administrador Unico o el Consejo de
Administracion, segun sea el caso, a disposicion de los accionistas, para su
revision, por lo menos durante los quince dias anteriores a la fecha senalada
para la Asamblea General Ordinaria Anual de Accionistas. Los estados
financieros, una vez aprobados, deberan mandarse publicar y depositar en la
forma y terminos previstos en el articulo ciento setenta y siete de la Ley
General de Sociedades Mercantiles. ARTICULO XXXV. Las utilidades netas de cada
ejercicio social seran distribuidas de la siguiente manera: a) El cinco por
ciento para constituir y, si fuese necesario para reconstituir el fondo de
reserva legal, hasta que sea igual, a cuando menos, el veinte por ciento del
capital social. b) El saldo de las utilidades netas se aplicara segun lo
determine la Asamblea General Ordinaria de Accionistas. ARTICULO XXXVI. Las
perdidas, si las hubiere, seran reportadas primeramente por los fondos de
reserva y, si estos fueren insuficientes, por el capital social pagado, en el
entendido de que la responsabilidad de los accionistas en relacion a las
obligaciones de la sociedad estara limitada al pago del valor nominal de sus
respectivas acciones......".
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II. CAMBIO DE DENOMINACION. Por escritura numero veinticuatro mil
trescientos tres, de fecha nueve de febrero de mil novecientos noventa y seis,
otorgada ante el mismo Notario que la anterior, inscrito su primer testimonio en
el Registro Publico de la Propiedad y de Comercio de esta ciudad, el cinco de
marzo de mil novecientos noventa y seis, en el folio mercantil doscientos dos
mil quinientos treinta y siete, previo permiso concedido por la Secretaria de
Relaciones Exteriores marcado con el numero cero nueve millones treinta y cinco
mil quinientos ochenta y siete, expediente numero nueve mil quinientos nueve
millones vientitres mil seiscientos veintiseis, se hizo constar la
Protocolizacion del acta de la Asamblea General Estraordinarioa, celebrada por
los accionistas de "COMERCIALIZADORA JAFRA", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, el dia cinco de enero de mil novecientos noventa y seis, e la
cual, entre otros, se tomo el acuerdo de cambiar la denominacion por la de
"JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, reformandose al efecto
el Articulo Primero de los estatutos sociales.
III. ACTA QUE SE PROTOCOLIZA PARCIALMENTE. El compareciente me exhibe
el libro de Actas de Asambleas Generales de "COMERCIALIZADORA JAFRA", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, en el que de la foja siete a la diecinueve,
inclusive, consta un acta de la Asamblea General Ordinaria y Extraordinaria,
celebrada por los accionistas de la expresada sociedad, el dia treinta y uno
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de mayo de mil novacientos noventa y seis, de la cual en lo conducente copio lo
siguiente:
"En el Distrito Federal, Mexico , a las 17:00 del 31 de mayo de 1996, se
reunieron domicilio social de JAFRA COSMETICS, S.A. DE C.V., la senorita Elisa
Iglesias Alarez, en representacion de Grupo Jafra, S.A. de C.V., y el senor Luis
Alfonso Cervantes Muniz, en representatcion de Prodenob, S.A. de C.V., con
objeto de celebrar la ASAMBLEA GENERAL ORDINARIA Y EXTRAORDINARIA DE ACCIONISTAS
de JAFRA COSMETICS, S.A. DE C.V., a la que fueron previa y oportunamente
convocados. Estuvieron tambien presentes los senores Alfredo Munda Tabusso y
Alberto Mena Adame, Presidente y Secretario del Consejo de Administration,
respectivamente, de la sociedad, y Fernando Holguin Maillard, Comisario de la
misma. Fungio como Presidente de la Asambea de del Consejo de Administracion de
la sociedad, senor Alfred Munda Tabusso, y como Secretario el del propio Consejo
de Administracion, senor Alberto Mena Adame. El Presidente designo escrutadores
a la senorita Elisa Iglesias Alvarez y al senor Luis Alfonso Cervantes Muniz
quienes, depues de aceptar sus cargos y de revisar los instrumentos conteniendo
los mandatos de los representantes de los accionistas y el Libro de Registro de
Acciones que la sociedad lleva en terminos de lo dispuesto por el articulo 128
de la Ley General de Sociedades Mercantiles, certificaron, en union del
Comisario, que se encontraba debidamente
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representada en la Asamblea la totalidad de las acciones de la sociedad
actualmente en circulacion, distribuidas en la siguiente forma:
ACCIONISTA ACCIONES VOTOS
SERIE "A"
Grupo Jafra, S.A. de C.V., 49 49
representada por la senorita Elisa
Iglesias Alvarez
Prodenob, S.A. de C.V. 1 1
representada por el senor -- --
Luis Alfonso Cervantes Muniz
TOTAL 50 50
En virtud de encontrarse representada en la Asamblea la totalidad de las
acciones emitidas por la sociedad actualmente en circulacion, el Presidente
declaro la misma legalmente instalada, no obstante no haberse publicado la
convocatoria respectiva, con funamento en los articulos 188 de la Ley General de
Sociedades Mercantiles y vigesimo segundo de los estatutos de la sociedad. Los
representantes de los accionistas presentes, por unanimidad de votos, aprobaron
la declaratoria anterio y procedieron a desahogar los asuntos contenidos en el
siguiente: ORDEN DEL DIA. I. Cambio de la denominacion social de la sociedad y
modificacion del articulo primero de los estatutos sociales. II. Autorizacion
para la consolidacion del resultado fiscal de la sociedad como sociedad
controlada en los terminos del articulo 57-A y siguientes de la Ley del Impuesto
sorba la Renta....V. Designacion de delegados para la formalizacion de las
resoluciones adoptadas por la Asamblea. PUNTO UNO. En desahogo del primer punto
del Orden del Dia el Presidente expuso a la Asamblea las razones por las que se
estima conveniente el cambio
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de denominacion de la sociedad de JAFRA COSMETICS, S.A. DE C.V., a CONSULTORIA
JAFRA, S.A. DE C.V., con efectos a partir del 10 de agosto de 1996. El
Presidente agrego que, en caso de resolverse la modificacion propuesta, procede
la reforma del articulo primero de los estatutos sociales en los terminos del
texto de dicho articulo que en proyecto se circulo previamente entre los
presentes, al cual dio lectura. Continuo exponiendo el Presidente que el cambio
de denominacion de la sociedad a CONSULTORIA JAFRA, S.A. DE C.V. quedaria sujeto
a la condicion suspensiva de que la Secretaria de Relaciones Exteriores expida
el permiso correspondiente. Despues de considerar lo anterior, por el voto
unanime de la totalidad de las 50 (cincuenta) acciones representantivas del
capital social de JAFRA COSMETICS, S.A. DE C.V., las que representan el 100%
(cien por ciento) de dicho capital social, se adoptaron las siguientes.
RESOLUCIONES. "1. Con efectos a partir del 10 de agosto de 1996 se resuelve el
cambio de denominacion de la sociedad de JAFRA COSMETIC a CONSULTORIA JAFRA,
denominacion social que ira siempre seguida de las palabras "SOCIEDAD
ANONIMA DE CAPITAL VARIABLE," o de su abreviatura "S.A. de C.V.", sujeto a la
condicion suspensiva de que la Secretaria de Relaciones Exteriores expida el
permiso correspondiente." "2. Con efectos a partir del 10 de agosto de 1996 se
modifica el articulo primero de los estatutos sociales de JAFRA COSMETICS, S.A.
DE C.V., para quedar redactado en los siguientes terminos: "ARTICULO I. La
denominacion de la sociedad es "CONSULTORIA JAFRA," y devera ir siempre seguida
de las palabras
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"SOCIEDAD ANONIMA DE CAPITAL VARIABLE" o de su abreviatura "S.A. de C.V." La
modificacion estatutaria en cuestion queda sujeta a la condicion suspensiva de
que la Secretaria de Relaciones Exteriores expida el permiso correspondiente."
PUNTO DOS. En desahogo del segundo punto del Orden del Dia el Presidente expuso
a la Asamblea las razones por pas que se estima conveniente que la sociedad
consolide su resultado fiscal como sociedad contralada con GRUPO JAFRA, S.A. DE
C.V., como sociedad controladora, en los terminos previstos en los articulos
57-A siguientes de la Ley del Impuesto sobre la Renta, y 51 y siguientes del
Reglamento de dicha Ley en vigor, precisando que conviene que esta Asamblea
autorice expresamente dicha consolidacion y designe a un representante que, en
nombre y representacion de la sociedad, suscriba la conformidad con la
consolidacion fiscal, en los terminos del articulo 57-B, inciso IV de la citada
Ley. Asimismo, el Presidente manifesto que las Assamblea requiere aprobar que la
sociedad dictamine susestados financieros para efectos fiscales por contador
publico, en los terminos del Codigo Fiscal de la Federacion durante los
ejercicios por los que opte por el regimen de consolidacion. Despues de comentar
lo expuesto por la Presidente (asi), los representantes de accionistas
presentes, por unanimidad de votos, adoptaron las siguientes. RESOLUCIONES. "1.
Se autoriza expresamente y se resuelve en esta acto la consolidacion del
resultado fiscal de JAFRA COSMETICS, S.A. DE C.V. (con efectos a partir del 10
de agosto de 1996 CONSULTORIA JAFRA, S.A. DE C.V., como sociedad controlada, con
GRUPO
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JAFRA, S.A. DE C.V. como sociedad controladora, en los terminos de lo previsto
en los articulos 57-A siguientes de la Ley del Impuesto sobre la Renta, y 51 y
siguientes del Reglamento de dicha Ley, en vigor, siempre y cuando, y en la
medida en que, las autoridades fiscales correspondientes autoricen tal
consolidacion.". "2. Se autoriza a los senores Michael Anthony DiGregorio DiMaio
y Juan Humberto Rodriguez Acevedo para que conjunta o separadamente,
indistintamente, suscriba en nombre de JAFRA COSMETICS, S.A. DE C.V. (con
efectos a partir del 10 de agosto de 1996 CONSULTORIA JAFRA, S.A. DE C.V.) la
conformidad para consolidar los resultados fiscales de esta empresa, como
sociedad controlada, con los de GRUPO JAFRA, S.A. DE C.V. como sociedad
controladora, y con las demas empresas filiales y subsidiarias de esta ultima
como sociedades controladas, en los terminos de lo previsto en los articulos
57-A y siguientes de la Ley del Impuesto sobre la Renta y 51 y siguientes del
Reglamento de dicha Ley en vigor.". "3. Se aprueba que JAFRA COSMETICS, S.A. DE
C.V. dictamine sus estados financieros para efectos fiscales por contador
publico, en los terminos del Codigo Fiscal de la Federacion durante los
ejercicios por los que opte por el regimen de consolidacion.". PUNTO CINCO. En
desahogo del quinto punto de Orden del Dia, el Presidente hizo notar a los
presentes la necesidad de designar a la persona o personas que, en
representacion de la sociedad, habran de comparecer ante Notario Publico para
protocolizar total o parcialmente el acta que de esta Asamblea se levante,
proponiendo se designe para tales fines a las senoritas Elisa Iglesias Alvarez y
Araceli Lugo Vega y a los
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senores Luis Alfonso Cervantes Muniz y Ramiro Rangel Sanchez, para actuar
conjunto a separadamente, indistintamente. Despues de comentar lo anterior, por
el voto unanime de la totalidad de los representantes de los accionistas
presentes de JAFRA COSMETICS, S.A. DE C.V. (con efectos a partir del 10 de
agosto de 1996 CONSULTORIA JAFRA, S.A. DE C.V.) se adopto la siguiente.
RESOLUCION. "Se designan delegados de la sociedad a las senoritas Elisa Iglesias
Alvarez y Araceli Lugo Vega, y a los senores Luis Alfonso Cervantes Muniz y
Ramiro Rangel Sanchez para que, cojunta o separadamente, indistintamente,
cualquiera de ellos comparezca ante el Notario Publico de se eleccion a
protocolizar total o parcialmente el acta que de esta Asamblea se levante, asi
como para que otorgue todos los documentos que fueren necesarios o convenientes
para dar cumplimiento y formalizar las resoluciones adoptadas por esta Asamblea,
y para que realice cuantos actos se requieren para que tales resoluciones cobren
plena vigencia y surtan todos sys efectos.". A continuacion el senor Alberto
Mena Adame, en su caracter de Secretario de la Asamblea, hizo constar que
durante el desarrollo de la misma y al momento de adoptarse todas y cada una de
las resoluciones contenidas en esta acta, estuvieron debidamente representadas y
participaron la totalidad de las acciones en que se divide el capital social de
JAFRA COSMETICS, S.A. DE C.V., actualmente en circulacion. Se agregan al
expediente de esta acta, como ANEXO UNICO, las cartas poser con las que los
representantes de los accionistas acreditaron su representacion. A continuacion
se suspendio la Asamblea para la redaccion de esta acta,
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la cual fue posteriormente leida y aprobada por todos los presentes, y firmada
por el Presidente y el Secretario de la Asamblea y el Comisario de la sociedad.
Se levanto la asamblea a las 18:00 del 31 de mayo de 1996. Una firma ilegible.
Alberto Munda Tabusso. Presidente. Una firma ilegible. Alberto Mena Adame.
Secretario. Una firma ilegible. Elisa Iglesias Alvarez, en representacion de
Grupo Jafra, S.A. de C. V. Una firma ilegible. Luis Alfonso Cervantes Muniz, en
representacion de Prodenob, S.A. de C.V. Una firma ilegible. Fernando Holguin
Mailland Comisario."
IV. RELACION DEL PERMISO DE LA SECRETARIA DE RELACIONES EXTERIORES. Se
solicito y obtuvo el permiso respectivo de la Secretario de Relaciones
Exteriores, expedido con fecho cinco de septiembre de mil novecientos noventa y
seis, marcado con el numero nueve millones veintinueve mil novecienta y cinco
expediente nueve mil quinientos nueve millones vientitres mil seiscientos
veintiseis, mismo que se agrega al apendice de este instrumento un una foja util
y con la letra "A", siendo dicho permiso del tenor literal siguiente:
"AL MARGEN SUPERIOR IZQUIERDO UN SELLO CON EL ESCUDO NACIONAL QUE DICE:
SECRETARIA DE RELACIONES EXTERIORES. MEXICO. AL MARGEN SUPERIOR DERECHO DICE:
PERMISO 09029095 -EXPEDIENTE 9509023626. FOLIO 29194. AL CENTRO DICE: En
atencion a la solicitud presentada por el C. LUIS ALFONSO CERVANTES MUNIZ, en
representacion de JAFRA COSMETICS, S.A. DE C.V. Esta Secretaria concede permiso
para cambiar
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la denominacion. DE: JAFRA COSMETICS, SA DE CV.A: CONSULTORIA JAFRA, SA DE CV.
CONCEDIDO a la solicitante para reformar sus Estatutos Sociales in los terminos
arriba especificos, en la inteligencia de que deberan contener la clausula a que
alude el articulo 30 o el convenio que senala el articulo 31 del Reglamento de
la Ley para promover la Inversion Mexicana y Regular la Inversion Extranjera
segun sea el caso. El Notario o Corredor Publico ante quien se haga uso de este
permiso, debera dar aviso a la Secretaria de Relaciones Experiores dentro de los
noventa dias habiles a partir de la fecha de autorizacion de la Escritura
Publica correspondiente. Lo anterior se comunica con fundamento en los articulo
27, Fraccion I, de la Constitucion Politica de los Estados Unidos Mexicanos, 16
de la Ley de Inversion Extranjera, y en los terminos del articulo 28 fraccion V
de la Ley Organica de la Administracion Publica Federal. Este permiso dejara de
surtir efectos si no se hace uso del mismo dentro de los 90 dias habiles
siguientes a la fecha de expedicion y se otorga sin perjuicio de lo dispuesto
por el articulo 91 de la Ley de la Propiedad Industrial. Tlatelolco, D.F., a 05
de Septiembre de 1996. SUFRAGIO EFECTIVO. NO REELECCION. EL DIRECTOR DE
PERMISOS DE ART. 27 CONSTITUCIONAL. Una firma ilegible. LIC. CRISTINA ALCALA
ROSETE. UN SELLO CON EL ESCUDO NACIONAL QUE DICE: ESTADOS UNIDOS MEXICANOS.
SECRETARIA DE RELACIONES EXTERIORES. DIRECCION GENERAL DE ASUNTOS JURIDICOS."
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EXPUESTO LO ANTERIOR, EL COMPARECIENTE FORMALIZA LO QUE SE CONTIENE EN LAS
SIGUIENTES:
C L A U S U L A S
PRIMERA. A solicitud del senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, en su
caracter de Delegado Especial de "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, y en cumplimiento del acuerdo respectivo, y en uso del permiso
concedido al efecto por la Secretaria de Relaciones Exteriores, queda
PROTOCOLIZADA en la presente, el Acta de la ASAMBLEA GENERAL ORDINARIA Y
EXTRAORDINARIA, celebrada por los accionistas de la expresada sociedad, el dia
treinta y uno de mayo de mil novecientos noventa y seis, que aparece transcrita
en lo conducente en el antecedente tercero de esta escritura.
SEGUNDA. En consecuencia, se tienen por formalizados los siguientes acuerdos:
A). Con efectos a partir del primero de agosto de mil novecientos noventa y
seis, se resuleve el cambio de denominacion de la sociedad de "JAFRA COSMETICS"
a "CONSULTORIA JAFRA," denominacion social que ira siempre seguida de las
palabras" "SOCIEDAD ANONIMA DE CAPITAL VARIABLE", o de se abreviatura "S.A. de
C.V."
B). Con efectos a partir del primero de agosto de mil novecientos noventa y
seis, se modifica el articulo primero de los Estatutos Sociales de "JAFRA
COSMETICS",
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SOCIEDAD ANONIMA DE CAPITAL VARIABLE, para quedar redactado en los siguientes
terminos:
"ARTICULO I. La denominacion de la sociedad es "CONSULTORIA JAFRA", y debera
ir siempre seguida de las palabras "SOCIEDAD ANONIMA DE CAPITAL VARIABLE" o de
su abreviatura "S.A. de C.V."
C). Por autorizado expresamente y resuelto en este acto la consolidacion del
resultado fiscal de "JAFRA COSMETICS", SOCIEDAD ANONIMA CAPITAL VARIABLE, con
efectos a partir del primero de agosto de mil novecientos noventa y seis,
"CONSULTORIA JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, como sociedad
controlada, con "GRUPO JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, como
sociedad controladora, en los terminos de lo previsto en los articulos cincuenta
y siete guion "A" y siguientes de la Ley del Impuesto sobre la Renta, y
cincuenta y uno y siguientes del Reglamento de dicha Ley en vigor, siempre y
cuando, y en la medida en que, las autoridades fiscales correspondientes
autoricen tal consolidacion.
D). Por autorizados a los senores MICHAEL ANTHONY DIGREGORIO DIMAIO y JUAN
HUMBERTO RODRIGUEZ ACEVEDO para que conjunta o separadamente, indistintamente,
suscriban en nombre de "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
con efectos a partir del primero de agosto de mil novecientos noventa y seis,
"CONSULTORIA JAFRA", SOCIEDAD
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ANONIMA DE CAPITAL VARIABLE; la conformidad para consolidar los resultados
fiscales de esta empresa, como sociedad controlada, con los de "GRUPO JAFRA,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, como sociedad controladora, y con las
demas empresas filiales y subsidiarias de esta ultima como sociedades
controladas, en los terminos de lo previsto en los articulos cincuenta y siete
guion "A" y siguientes de la Ley del Impuesto sobre la Renta y cincuenta y uno y
siguientes del Reglamento de dicha Ley en vigor.
E). Por aprobado que "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
dictamine sus estados financieros para efectos fiscales por contador publico, en
los terminos del Codigo Fiscal de la Federacion durante los ejercicios por los
que opte por el regimen de consolidacion.
TERCERA. El senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, en su citado
caracter de Delegado Especial de "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, libera al suscrito Notario de la obligacion de inscribir el primer
testimonio de esta escritura, en el Registro Publico de la Propiedad y de
Comercio del Distrito Federal, siendo por cuenta de "JAFRA COSMETICS", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, actualmente "CONSULTORIA JAFRA", SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, todos los gastos, derechos y honorarios que dicho tramite
origine.
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CUARTA. Los gastos y honorarios que esta escritura origine, seran por cuenta
de "CONSULTORIA JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifiesta el senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, bajo protesta de
decir verdad y advertido previamente de las penas en que incurren quienes
declaran con falsedad ante Notario, que:
A). "JAFRA COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VA RIABLE, se encuentra
inscrita en el Registro Nacional de Inversiones Extranjeras, bajo el expediente
numero cincuenta y un mil ciento setenta y nueve, registro setecientos
veintitres.
B). Las firmas autografas que aparecen al final del acta protocolizada,
corresponden a las personas que se les atribuyen.
C). LA PERSONALIDAD que ostenta no le ha sido revocada ni en forma alguna
limitada, y acredita la misma, asi como la legal constitucion de su
representada, con los documentos relacionados en los antedecentes de la
presente.
POR SUS GENERALES, el compareciente declara ser mexicano por nacimiento,
originario del Distrito Federal, nacio el dieciseis de noviembre de mil
novecientos cincuenta y cinco, Licenciado en Derecho, con domicilio en la calle
de Campos Eliseos numero trescientos cuarenta y cinco, tercer piso, colonia
Chapultepec Polanco, codigo postal once mil quinientos sesenta, y quien es de mi
personal conocimiento.
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FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el Notario; lo
relacionado e inserto concuerda con sus originales a que me remito; el
compareciente a quien explique ampliamente el valor y las consecuencias legales
de esta escritura, me es conocido y tiene capacidad legal; la misma le fue leida
y conforme con ella la firma el dia cuatro de mismo octubre, en que desde luego
AUTORIZO. DOY FE.
LUIS ALFONSO CERVANTES MUNIZ. Firma. CARLOS ANTONIO REA FIELD. Firma.
El sello de autorizar.
NOTAS COMPLEMENTARIAS
NOTA PRIMERA. Mexico, Distrito Federal, a cuatro de octubre de mil
novecientos noventa y seis. Con esta fecha agrego al apendice de esta
escritura, en una foja util y con la letra "B", el aviso que di a la Secretaria
de Relaciones Exteriores, conforme a los articulos treinta y uno y treinta y dos
del Reglamento de la Ley para Promover la Inversion Mexicana y Regular la
Inversion Extranjera. DOY FE. CARLOS ANTONIO REA FIELD. Rubrica.
ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA "CONSULTORIA
JAFRA", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A EFECTO DE QUE LE SIRVA DE TITULO
CON QUE ACREDITAR SU CONSTITUCION Y PARA SU ADMINISTRACION. VA EN DIEZ FOJAS
UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS. DOY FE. MEXICO, DISTRITO
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FEDERAL A CUATRO DE OCTUBRE DE MIL NOVECIENTOS NOVENTA Y SEIS.
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EXHIBIT 3.6(A)
Estatutos Sociales of COMERCIALIZADORA JAFRA, S.A. DE C.V. (CONSULTORIA
JAFRA).
Name, Domicile, Purpose, Duration and Nationality
Article 1. The name of the company is "Consultoria Jafra" which
denomination shall always be followed by the words "Sociedad Anonima de Capital
Variable," or by their abbreviation, "S.A. de C.V."
Article 2. The domicile of the company is Distrito Federal, Mexico.
However, the company may establish agencies or branches in any other part of
Mexico or a foreign territory, or designate conventional domiciles for the
execution of specific acts and contracts.
Article 3. The purpose of the company is:
1. To exercise general commercial powers, including the manufacture,
marketing and distribution of all classes of products that relate to personal
care and hygiene, whether for health-related or beauty-related purposes, as well
as cosmetics, fragrances, jewelry and other personal care products.
2. To create, export, import, acquire, alienate, lease, sublease, all
types of commodities, equipment, machinery, and all other implementations
necessary to effectuate the activities described in paragraph 1 above, as well
as for other types of commercial activity.
3. To acquire shares, interests or participations, or make investments in,
any other type of business, corporation, organization or association, in Mexico
or elsewhere.
4. To sell, transfer, or convey, in any manner prescribed by the laws that
govern business activities relating to shares of a corporation, interests or
participations representing investment in any type of business, corporation,
organization or association, whether in Mexico or abroad.
5. To receive from other corporations or persons, in a manner consistent
with the practices of other corporations or persons doing the same, any type of
service or services required to achieve the corporate purpose stated herein.
Such services include, but are not limited to, administrative services,
financial services, legal representation, marketing and accounting, which
includes the preparation of financial reports, annual or quarterly
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budgets and manuals that evaluate the operational performance of the company,
evaluation of productivity and strategies for financing, and analysis of the
availability of capital for investment purposes.
6. To build, rent, sublease, operate or possess in any manner permitted by
law, offices, factories, studios, stores, plants, warehouses and any other
establishments necessary to carry out the stated corporate purpose, as well as
to acquire and alienate all forms of commercial or industrial businesses,
including shares or participations in such businesses.
7. To establish branches, subsidiaries, agencies or offices in Mexico or
in any other country.
8. To act as agent, or to represent in any other manner, all types of
companies and individuals, within or outside Mexico.
9. To acquire, possess, lease or sublease, purchase or sell, and negotiate
with, in any manner permitted by law, real or personal property, including the
acquisition, establishment and operation of experimental laboratories.
10. To offer all types of technical service, administrative consulting and
supervision to industrial and commercial entities, in Mexico and abroad, and to
receive the same services from such other industrial and commercial entities.
11. To supply and receive services for the manufacture of cosmetics
products or to supply and receive processed materials related to such products
from or to all types of commercial and industrial entities.
12. To lend or borrow money by any means, with or without security, and to
issue bonds or other types of obligations, and to carry out acts for the purpose
of obtaining credit. The foregoing shall be carried out in each case under the
supervision and intervention of those institutions whose participation is
required by law.
13. To guarantee obligations of third parties; and
14. In general, to carry out and perform any activities, civil or
commercial in nature, permitted by law.
Article 4. The duration of the company shall be 150 years, beginning with
the date of its incorporation.
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Article 5. The capital stock shall be variable. The fixed portion of the
capital, which is not subject to withdrawal, is Ps.$50,000.00 New Pesos
(Fifty Thousand New Pesos), represented by Fifty (50) ordinary, Series "A"
shares, with a par value of Ps.$1.00 New Peso (One New Peso) per share. The
variable part of the capital stock shall be without limit and may be created,
augmented, or reduced in accordance with the requirements of Article 6.
The variable portion of the capital stock shall be designated as Series
"B" shares.
In any case, the participation of foreign investors in the capital stock
of the company shall be subject to the applicable provisions of the Law on
Foreign Investment and its applicable regulations.
Stock certificates and provisional certificates shall comply with the
requirements specified in Article 125 of the General Corporations Law; stock
certificates may represent title to one or more shares and shall bear the
signature of two members of the Board of Directors or by the Sole Administrator,
as the case may be.
Article 6. Each increase or reduction of the fixed capital stock of the
company shall be declared by an Extraordinary Stockholders' Meeting. Each
increase or reduction of the variable capital stock of the company shall be
declared by an Ordinary Shareholders' Meeting.
According to the provisions of Article 132 of the General Corporations
Law, in the case of increase in the capital stock of the corporation,
stockholders shall have a preemptive right to subscribe to those shares
representing the increase in the capital stock of the company. In such a case,
the subscription right may be exercised in proportion to the number of
outstanding shares which the stockholder already owns.
Resolutions adopted at Stockholders' Meetings that approve any increase in
the capital stock of the company shall by published in the Official Gazette of
the Federation (Diario Oficial de la Federacion). Additionally, notice of the
adoption of such resolutions shall be sent to the Stockholders by certified mail
prior to the date of publication, to those addresses that are inscribed in the
Stock Registry Book of the company. In the event that there are Stockholders
domiciled outside of Mexico, notice shall be sent by certified air mail.
The Stockholders may exercise their preemptive rights within fifteen (15)
calendar days following the date of publication of the resolution adopting an
increase in the capital stock of the company. However, if the entire capital
stock of the company
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shall have been represented in any meeting adopting an increase in capital
stock, the period of fifteen (15) calendar days shall be counted from the date
of such meeting.
Article 7. The company may reacquire shares representing the capital stock
of the company for their redemption with dividends through the means specified
by resolution of an Extraordinary Stockholders' Meeting, without diminution of
the capital stock of the company. The designation of those shares that shall be
redeemed shall be made by means of a lottery, the terms and conditions of which
shall be determined by the Extraordinary Stockholders' Meeting, or by their
delegation of such powers to the Board of Directors. The foregoing redemption
right shall be subject to the maximum amount of profits that may be issued for
such a purpose, such amount to be determined by the Extraordinary Stockholders'
Meeting. Title to those shares that shall have been redeemed according to the
provisions of this paragraph shall be deemed extinguished upon redemption.
ADMINISTRATION
Article 8. The administration of the company shall be entrusted to a Sole
Administrator or to a Board of Directors composed of the number of Directors
determined by the Ordinary Stockholders' Meeting. If the Stockholders shall deem
it necessary, they may designate an Alternate Sole Administrator or Alternate
members of the Board of Directors, as the case may be. The Sole Administrator or
the members of the Board of Directors, as the case may be, need not be
Stockholders. They shall hold their offices until their successors take their
place, but they may be reelected and shall receive compensation as determined by
the Ordinary Stockholders' Meeting.
Article 9. In the event that the company is administered by a Board of
Directors, any Stockholder or group of Stockholders representing at least 25%
(Twenty-Five Percent) of the capital stock of the company shall have the right
to appoint one member of the Board of Directors and his/her Alternate. In the
event that no Stockholder or group of Stockholders exercises the minority
Stockholders' rights established by this Article, all the members of the Board
of Directors shall be appointed by a majority of Stockholder votes.
Article 10. The Board of Directors or the Sole Administrator, as the case
may be, shall have the following authority and obligations:
1. General power of attorney for lawsuits and collections, with the
broadest power as permitted by law, in the terms of the first paragraph of
Article 2554 of the Civil Code for the Federal District and its correlative
Articles of any Civil Code of the states comprising the United Mexican States
(the "Civil Code"), with all general and such
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special powers as may be required, including those provided in Article 2587 of
the Civil Code, wherefore they will have, without limiting the generality of the
foregoing, the following authority: to represent the company before Federal,
State, Municipal, Administrative and Judicial authorities, before the Secretary
of Labor and before Conciliation and Arbitration Boards and to sign such
documents as may be required in the exercise of this power of attorney; to
exercise all types of rights and actions before any and all authorities and
Boards of Conciliation and Arbitration; to submit to any jurisdiction; to
promote and withdraw from litigation; to file charges and criminal complaints
and appear as offended party and assist the District Attorney and grant pardons;
to compromise; to submit to arbitration; to take and answer depositions; to
accept and release all kind of guarantees; to assign property and to perform all
other actions which are expressly determined by law.
2. General power of attorney for acts of administration, under the terms
of the second paragraph of Article 2554 of the Civil Code, including the
authority to execute, amend, carry out and rescind all kind of contracts and
agreements, to obtain loans and in general, to carry out all acts that are
related directly or indirectly to the corporate purposes.
3. General power of attorney for acts of ownership, under the terms of the
third paragraph of Article 2554 of the Civil Code, including the authority to
acquire personal and real property, to transfer title to as well as to encumber
by pledge, mortgage or otherwise, personal and real property.
4. Power to issue, sign and endorse negotiable instruments in accordance
with Article 9 of the General Law of Negotiable Instruments and Credit
Transactions.
5. Power to establish branches and agencies in any location of the United
Mexican States or abroad and to close such branches or agencies.
6. Power to designate and remove managers, officers and employees of the
company and to determine their powers, duties and remuneration.
7. Power to formulate internal regulations affecting employment in the
company.
8. Power to convene Stockholders' Meetings and to execute their
resolutions.
9. Power to exercise any other authority granted to it in these estatutos
and those powers that are by implication necessary to carry out the terms of the
estatutos.
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10. Power to confer and revoke general and special powers of attorney
within the scope of the aforementioned powers.
Article 11. To facilitate the administration of the company when the Board
of Directors are in session, a President and a Secretary of the Board of
Directors shall be designated by the Ordinary Stockholders or by the Board of
Directors, such designation to be made for the purpose of performance of
specific duties on the part of the President and Secretary. The Secretary does
not have to be a member of the Board of Directors.
Article 12. In order for meetings of the Board of Directors to be legally
held, the attendance of at least the majority of the Directors or their
respective alternates shall be required. Resolutions of the Board of Directors
shall be valid only if adopted by the affirmative vote of the majority of the
members of the Board of Directors present at the meeting.
In accordance with the provisions of Article 143 of the General
Corporations Law, the members of the Board of Directors may adopt valid
resolutions without a formal meeting, provided that such resolutions, which
shall be made in writing, are signed by all the members of the Board of
Directors. In any case, it shall be the responsibility of the person designated
as Secretary of the Board of Directors to ensure the authenticity of the
signatures, and their preservation in the corporate records.
Article 13. The President of the Board of Directors does not hold voting
power to break any impasse that may occur during any meeting of the Board of
Directors. If the President or the Secretary do not preside over any meeting of
the Board of Directors, their respective duties shall be carried out by a board
member designated by the majority vote of those Directors who are present at the
meeting. All acts of the Board shall be transcribed in a Corporate Minutes Book,
which shall be signed by the President and Secretary of the Board of Directors,
or any other director attending such a meeting.
Article 14. In order to guarantee the performance of their specific
duties, the Sole Administrator, or as the case may be, the Board of Directors
and their respective Alternates, shall deposit with the company PsN$100.00 (One
Hundred New Pesos) or in the alternative, a surety bond granted in favor of the
company in the same amount. Each member of the Board of Directors, or the Sole
Administrator, as the case may be, may not withdraw the amount granted to the
company as a guaranty until the discharge of their duties shall have been
approved by the Ordinary Stockholders' Meeting. Officers and other officials
shall grant to the company guaranties in the manner prescribed, if any, by the
Ordinary Stockholders' Meeting or the Board of Directors.
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OVERSIGHT OF THE COMPANY
Article 15. The oversight of the company shall be entrusted to one or more
Statutory Auditors, as may be determined by the Stockholders in a General
Meeting. An Alternate Statutory Auditor may be designated for each Statutory
Auditor.
Article 16. The Statutory Auditors need not also be Stockholders of the
company; they may be reelected and shall continue to discharge their duties
until their successors take office.
Article 17. The Statutory Auditors shall have the powers and obligations
granted to them by Article 166 of the General Corporations Law.
Article 18. The Statutory Auditors shall grant to the company the guaranty
amounts mentioned in Article 14 of these estatutos, and may only withdraw such
guaranty amounts if the discharge of their duties shall have been approved by
the Ordinary Stockholders' Meeting.
STOCKHOLDERS' MEETINGS
Article 19. Stockholders' meetings shall take place at the corporate
domicile. Those meetings which shall determine matters pursuant to Article 182
of the General Corporations Law shall be known as Extraordinary Stockholders'
Meetings. All other meetings shall be designated as Ordinary Stockholders'
Meetings.
Article 20. Calls for all Stockholders' Meetings shall be made by the Sole
Administrator or the President or Secretary of the Board of Directors, as the
case may be, in the manner permitted by law, or may be made by the Statutory
Auditor or Auditors. However, any Stockholder or group of Stockholders
representing at least 33% (Thirty Three Percent) of the capital stock of the
company may, by written demand at any time, require the Sole Administrator or
the President or Secretary of the Board of Directors, or the Statutory Auditors,
to convene a meeting of the Stockholders to pass specifically upon those issues
enumerated in the demand letter. Any Stockholder holding at least one share of
the capital stock of the company shall have the same rights described herein in
the case of an event specified by Article 185 of the General Corporations Law.
If after the demand letter is served by the Stockholder or Stockholders holding
the rights mentioned in this Article 20 on the appropriate person, and such
person does not convene a meeting of the Stockholders within fifteen (15) days
following the date of the demand letter, such demand may be made upon any Civil
or District Judge by any interested Stockholder.
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Article 21. Calls for Stockholders' Meetings shall be published in the
Official Gazette of the Federation (Diario Oficial de la Federacion) or any
other daily publication of major circulation at least fifteen (15) days prior to
the date fixed for such a meeting. Additionally, notice of calls shall be sent
to Stockholders by certified mail prior to the date of publication. For those
Stockholders who are domiciled outside of Mexico, notice shall be sent by
certified air mail. Calls and notices of calls for Stockholders' Meetings shall
contain an Agenda to be passed upon or discussed at such a meeting and shall be
signed by the person sending such notice.
Article 22. Stockholders' Meetings may be held without the need for prior
publication if the entire capital stock of the company is represented at any
meeting.
Article 23. Only those Stockholders whose names are registered in the
Stock Registry Book of the company shall be admitted to Stockholders' Meetings.
Article 24. Stockholders may be represented at the meetings by an
attorney-in-fact holding a general or a special power of attorney or by an
attorney-in-fact designated by means of a simple letter of proxy.
Article 25. The acts of the Stockholders' Meetings shall be transcribed in
a Minute Book that shall be signed by those serving as President and Secretary
at the meeting, by the Statutory Auditors who are present at the meeting and by
those Stockholders or their representatives who wish to sign the Minute Book.
Article 26. Stockholders' meetings shall be presided over by the Sole
Administrator or the Chairman of the Board of Directors, as the case may be. In
their absence, such meetings shall be presided over by the person designated for
such purposes by the majority of those present at the corresponding meeting. The
Secretary of the Board of Directors shall act as Secretary of Stockholders'
Meetings and, in his absence, the person designated for such purposes by
Stockholders in the corresponding meeting.
Article 27. Ordinary Stockholders' Meetings shall take place at least once
a year within four (4) months following the close of the fiscal year. In
addition to the subjects specified in the Agenda, the Annual Stockholders'
Meeting may specifically discuss, approve and modify the report of the Board of
Directors, including reports on the financial condition of the company as
required under Article 172 of the General Corporations Law; the Stockholders
shall also receive the reports or accounts of the Statutory Auditors.
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Article 28. Ordinary Stockholders' Meetings shall be considered legally on
a first or subsequent call if Stockholders holding at least 50% (fifty percent)
of all outstanding voting capital stock are present or represented at such a
meeting.
Article 29. Extraordinary Stockholders' Meetings shall be considered
legally held on a first call if at least 75% (seventy five percent) of the
outstanding voting capital stock of the company are presented or represented in
such meetings; in the event of a second or subsequent call, the Extraordinary
Stockholders' Meeting shall be considered legally held if at least 50% (fifty
percent) of the outstanding voting capital stock of the company are present or
represented at such meetings.
Article 30. Resolutions of Ordinary Stockholders' Meetings shall be valid
if adopted by the affirmative vote of Stockholders representing a majority of
the outstanding capital stock of the company are present or represented at the
meeting, and when there shall have been convened a quorum as that term is
defined in Article 28.
In the event of an Extraordinary Shareholders' Meeting, their
resolutions shall be valid if adopted by the affirmative vote of Stockholders
representing 50% (fifty per cent) of the total outstanding voting capital stock
of the company.
Article 31. In accordance with Article 178 of the General Corporations
Law, the Stockholders may adopt valid resolutions without formally convening in
a meeting by written consent signed by all the Stockholders of the company
entitled to vote. In such a case, it shall be the responsibility of the person
designated as the Secretary of the Board of Directors to ensure the authenticity
of the Stockholders' signatures and to keep a record of the same.
FINANCIAL REPORTS
Article 32. Within four (4) months following the close of each fiscal
year, the Sole Administrator or the Board of Directors, as the case may be,
shall formulate the following financial reports respecting the company, which
shall contain all the information necessary to reflect the financial and
operational state of the company, as such reporting is required by Article 172
of the General Corporations Law:
a) The financial state of the company at the date of the close of the
fiscal year (Annual Financial Report).
b) Reports showing explanations and classifications of the operational
state of the company during the preceding fiscal year (Annual Business Report).
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c) Reports indicating changes in the financial state of the company during
the course of the preceding fiscal year.
d) Reports indicating any changes in the items that make up the capital
stock of the company during the preceding fiscal year.
e) Any notes or clarifications accompanying any of the preceding reports.
Article 33. All financial and business reports, together with any
documents justifying the findings contained in the reports, shall be delivered
to the Statutory Auditor or Auditors, for their inspection, within one (1) month
of the date fixed for the Annual Shareholders' Meeting.
Article 34. Within fifteen (15) days following the date of receipt of
financial and business reports, the Statutory Auditors shall issue to the Sole
Administrator or to the Board of Directors, as the case may be, a written
opinion for the Stockholders discussing the veracity, sufficiency, and
reasonability of the information which had been presented to the Auditor(s) by
the Sole Administrator or by the Board of Directors, as the case may be.
The aforementioned documents shall remain in the possession of the Sole
Administrator or the Board of Directors, as the case may be, but shall be
available to the Stockholders for their review at least fifteen (15) days prior
to the Annual Stockholders' Meeting.
The financial reports, once approved, shall be sent for publication and
deposited in the manner prescribed by Article 177 of the General Corporations
Law.
Article 35. The net profits obtained in each fiscal year shall be applied
as follows:
1) 5% (five per cent) of the net profits shall be set aside for creating
or restoring the Legal Reserve, as the case may be, until it equals one-fifth of
the corporate capital stock.
2) The remainder shall be distributed as determined by the Stockholders in
an Ordinary Meeting.
Article 36. Losses, if there shall have been any, shall be applied against
the Legal Reserve, and if such Reserve is insufficient, against paid capital
stock, with the understanding that the obligations of the Stockholders with
respect to any obligations of the company shall be limited to the extent of the
par value of their respective shares.
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DISSOLUTION AND LIQUIDATION
Article 37. The company shall be dissolved in such manner as generally
prescribed by applicable law. Once dissolved, the company shall be liquidated.
The liquidation shall be entrusted in one or more liquidators designated by the
Stockholders' in an Extraordinary Meeting resolving upon dissolution. If no such
designation shall have been made, the dissolution of the company shall be
entrusted in a Civil or District Judge of the corporate domicile at the request
of any Stockholder.
Article 38. In the event that the Stockholders shall not give specific
instructions to the liquidator(s), the purpose of the liquidation shall proceed
upon the following general grounds.
1) Conclusion of all pending business in the manner least prejudicial to
creditors and the Stockholders.
2) Recovery of all debts and accounts receivable and the payment by the
company of any outstanding debts.
3) The sale of all the assets of the company.
4) Preparation of final balances after liquidation.
5) Distribution of any remaining proceeds of the liquidation, if any,
among the Stockholders in proportion to their participation in the capital stock
of the company.
GENERAL PROVISIONS
Article 39. The promoters of the company, as such may exist, shall hold no
participation in the company upon the date of incorporation.
Article 40. The company is of Mexican nationality. Any foreigner who, at
the time of incorporation or at any time thereafter, acquires a corporate
interest or participation in the company shall be considered by that fact alone
as Mexican with respect to such interest or participation and it shall be
understood that such foreigner agrees not to invoke the protection of its
Government under penalty, in case of failure to comply with such agreement, of
forfeiture of such interest or participation in favor of the Mexican Nation.
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EXHIBIT 3.7
LIC. ROBERTO NUNEZ Y BANDERA
NOTARIA No. 1, MEXICO, D.F.
INSTRUMENTO NUMERO
VEINTINUEVE MIL SEISCIENTOS NUEVE
En la Ciudad de Mexico, Distrito Federal, a los dos dias del mes de enero
de mil novecientos noventy y uno. ROBERTO NUNEZ Y BANDERA, Notario en Ejercicio,
Titular de la Notaria numero Uno de este Distrito, hago constar: El CONTRATO DE
SOCIEDAD que otorgan JAFRA COSMETICS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada por la Licenciada Leticia Navarro Ochoa, PLUMIBOL, SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, representada por el Senor Migeul Angel Castaneda Perez,
CALZADA MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada por el Senor Gustavo Madrinan Micolta, BRAUN DE MEXICO Y COMANIA,
DE CAPITAL VARIABLE, representada por el Licenciado Luis Alfonso Cervantes
Muniz, y ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
por el Senor Victor Manuel Rocha Duran, en los terminos de las siguientes
declaraciones y clausulas:
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DECLARACIONES
I. Los comparacientes me exhiben y agrego al apendice de este protocolo
con el numero de este instrumento y letra "A," el permiso otorgado por la
Secretaria de Relaciones Exteriores, que a la letra dice:
Un sello: ESTADOS UNIDOS MEXICANOS. SECRETARIA DE RELACIONES EXTERIORES
MEXICO. PERMISO 09063777. EXPEDIENTE 9009066737. FOLIO 133014
En atencion a la solicitud presentada por el C. LUIS ALFONSO CERVANTES
MUNIZ, esta Secretaria concede el permiso para que al constituir la persona
moral solicitante se utilice la denominacion DIRSAMEX SACV.
Este permiso, quedara condicionado a que en la escritura constitutiva se
inserto la clausula de exclusion de extranjeros prevista en el Articulo 30 o el
convenio que senala el Articulo 31, ambos del Reglamento de la Ley para Promover
la Inversion Mexicana y Regular la Inversion Extranjera.
El Notario Publico ante quien se protocolice este permiso, debara dar
aviso a la Secretaria de Relaciones Exteriores dentro de los 90 dias habiles a
partir de la fecha de autorizacion de la escritura sobre el uso del permiso o,
en su caso, del convenio sobre la renuncia a que se hace referencia en el
parrafo que antecede.
Lo anterior se comunica con fundamento en el articulo 27 Constitucional
Fraccion I, 1 de su Ley Organica, 17 de la Ley para Promover la Inversion
Mexican y
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Regular la Inversion Extranjera y en los terminos del Articulo 28 fraccion V de
la Ley Organica de la Administracion Publica Federal.
Este permiso dejara de surtir efectos ni no se hace uso del mismo dentro
de los 90 dias habiles siguientes a la fecha de su expedicion.
Tlatelolco, D.F., a 26 de Noviembre de 1990.
SUFRAGIO EFECTIVO. NO REELECCION. EL DIRECTOR DE PERMISOS DE ART. 27
CONSTITUCIONAL. LIC. LUIS RICAUD VELASCO.
(Firmado).
Esto expuesto los comparacientes otorgan:
CLAUSULA UNICA
Los comparacientes constituyen una SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
de acuerdo con la Ley General de Sociedades Mercantiles, la que se regira por
los siguientes:
ESTATUTOS
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO PRIMERO. La Denominacion de la sociedad es "DIRSAMEX" y debera ir
siempre seguida de las palabras sociedad anonima de capital variable, o de su
abreviatur "S.A. de C.V.".
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ARTICULO SEGUNDO. El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucursales en cualquier otra
parte de la Republica Mexicana o del extranjero y someterse a domicilios
convencionales.
ARTICULO TERCERO. La sociedad tendra por objeto:
a. La prestacion de todo tipo de servicios, en especial servicios
administrativos, a todo tipo de personas fisicas o morales, comerciantes o no;
b. La prestacion de toda clase de servicios tecnicos, administrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios;
c. Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrandamiento, en comodato o en subcomodato, administrar, operar poseer en
cualquier forma permitida por la ley fabricas, plantas industriales, talleres,
laboratorios, almacenes o bodegas, oficinas, tiendas y otros establecimientos y
bienes inmuebles como sea necesario para el logro de su objecto social;
d. Adquirir, enajenar, importar, exportar, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes muebles;
e. Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar y
adquirir marcas industriales y de servicios, nombres comerciales, derechos de
autor, patentes, invenciones y procesos, asi como disponer de ellos;
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f. Actuar como contratista, subcontratista, agente o representante y
designar subcontratistas, agentes o representantes;
g. Adquirir acciones, participaciones, partes de interes y obligaciones de
toda clase de empresas o sociedades, sean civiles o mercantiles, y formar parte
de elles;
h. Representar o ser agente o comisionista de negociaciones comerciales o
industriales nacionales o extranjeras;
i. Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito con la
intervencion de las instituciones senaladas por la ley, y otorgar fianzas o
garantias de cualquier clase respecto de obligaciones contraidas o de titulos
emitidos o aceptados por la propia sociedad o por terceros;
j. Emitir, suscribir, aceptar y negociar en cualquier forma con titulos de
credito; y
k. Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ARTICULO CUARTO. La sociedad tendra una duracion de noventa y nueve anos
contados a partir de la fecha de su constitucion.
CAPITAL SOCIAL Y ACCIONES
ARTICULO QUINTO. El capital social es variable. El capital fijo sin
derecho a retiro es de DIEZ MILLONES DE PESOS, Moneda Nacional, representado por
Diez
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Mil acciones ordinarias, nominativas, con valor nominal de MIL PESOS, Moneda
Nacional cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de la
parte fija del capital social que sean propiedad de personas fisicas o morales
cuya inversion se considere como mexicano en los terminos de la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera. Corresponderan
a la Serie "A-1" aquellas acciones representativas de la parte variable del
capital social que sean propiedad de personas fisicas o morales cuya inversion
se considere como mexicana en los terminos de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera.
Corresponderan a la Serie "B" aquellas acciones representativas de la
parte fija del capital que sean propiedad de personas fisicas o morales cuya
inversion se considere como extranjera en los terminos de la Ley para Promover
la Inversion Mexicana y Regular la Inversion Extranjera. Corresponderan a la
Serie "B-1" aquellas acciones representativas de la parte variable del capital
social que sean propriedad de personas fisicas o morales cuya inversion se
considere como extranjera en los terminos de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera.
En toda caso, la participacion de la inversion extranjera en el capital de
la sociedad habra de sujetarse a las disposiciones aplicables a la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera.
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Los certificados provisionales y los titulos definitivos representativos
de las acciones deberan cumplir con los requisitos establecidos en el articulo
ciento veinticinco de la Ley General de Sociedades Mercantiles; podran amparar
una o mas acciones y estaran firmados por dos miembros del Consejos de
Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO SEXTO. Cada aumento o reduccion del capita social, ya sea que
corresponda al capital fijo o la parte variable, sera decretado por Asamblea
General Extraordinaria de Accionistas, de conformidad con lo dispuesto por la
Ley General de Sociedades Mercantiles.
En los terminos del articulo ciento treinta y dos de la Ley General de
Sociedades Mercantiles, en el caso de aumento de capital los accionistas tendran
derecho preferente para sucribir las acciones representativas del aumento en
proporcion al numero de que sean titulares.
Las resoluciones de las Asambleas Generales Extraordinarias de Accionistas
en las que se acuerde aumento de capital seran publicadas en el periodico
oficial del domicilio de la sociedad. Ademas, las mencionadas resoluciones se
notificaran a los accionistas por medio de cartas que se enviaran por correo
certificado con anterioridad a la fecha de su publicacion, a las direcciones que
aparezcan registradas en el Libro de Registro de Acciones de la sociedad. En
caso de que existan accionistas domiciliados en el extranjero, dichas cartas se
enviaran por correo aereo certificado.
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Los accionistas deberan ejercer su derecho preferente antes mencionado
dentro de los quince dias de calendario siguientes a la fecha de publicacion de
la resolucion. Sin embargo, si la totalidad del capital social estuviere
representado en alguna Asamblea que decretase incremento de capital, el periodo
de quince dias de calendario se computara a partir de la fecha de la Asamblea
correspondiente y los accionistas se daran por notificados de la resolucion
desde la fecha de la Asamblea, por lo que la publicacion y notificacion de la
resolucion de incremento de capital no seran necesarias.
ARTICULO SEPTIMO. La sociedad podra adquirir las acciones representativas
de su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extraordinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asamblea General Extraordinaria de Accionistas o, por delegacion
especifica de esta, el Conseja de Administracion sujetandose al monto maximo
utilidades repartibles que habra de ser fijado por la propia Asamblea. Los
titulos de las acciones amortizadas quederan extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO OCTAVO. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
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pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los consejeros y sus suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de sus puestos; podran ser reelectos y recibiran
las remuneraciones que determine la Asamblea de Accionistas.
ARTICULO NOVENO. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerciera el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
ARTICULO DECIMO. El Consejo de Administracion o el Administrador Unico, en
su caso, sera el representante legal de la sociedad y tendra la siguientes
facultades y obligaciones: 1. Ejercitar el poder para pleitos y cobranazas, con
todas las facultades generales y las especiales que requieran de clausula
especial de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del articulo does mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de los
Codigos Civiles de las entidades federativas de los Estados Unidos Mexicanos,
estando por lo tanto facultado para desistirse de procedimientos, aun
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del juicio de amparo, formular querellas y denuncias penales y desistirse de
ellas; coadyuvar con el Ministerio Publico y otorgar perdon; transigir;
someterse a arbitraje; formular y absolver posiciones; recusar jueces; recibir
pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penales, civiles, administrativos y del trabajo; 2. Administrar bienes de
acuerdo con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 3. Ejecutar actos de dominio de acuerdo con lo previsto en el
tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos; 4. Suscribir
titulos de credito de conformidad con el articulo noveno de la Ley General de
Titulos y Operaciones de Credito; 5. Abrir, operar y cerrar cuentas bancarias a
nombre de la sociedad y designar a las personas que puedan girar contra las
mismas; 6. Nombrar y remover al director general y demas directores, gerentes,
funcionarios y empleados de la sociedad y determiner sus condiciones de trabajo,
remuneraciones y facultades; 7. Formular reglamentos interiores de trabajo; 8.
Convocar Asambleas de Accionistas y ejecutar sus resoluciones; 9. Llevar a cabo
todos los actos autorizados por estos estatutos o que sean consecuencia de los
mismos; 10. Conferir poderes generales y especiales en los terminos de los
puntos uno, dos, tres,
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cuatro y cinco anteriores, con o sin facultades de substitucion, asi como
revocar los poderes que hubieren sido otorgados.
ARTICULO DECIMO PRIMERO. Cuando la sociedad sea administrada por organo
colegiado el Presidente y el Secretario del Consejo de Administracion seran
designados por la Asamblea de Accionistas o por el Consejo de Administracion, y
tendran las facultades que se les otorguen al ser designados. El Secretario
podra ser o no miembro del Consejo.
ARTICULO DECIMO SEGUNDO. Para que las sesiones del Consejo de
Administracion sean validas se requerira, en todo caso, la asistencia de la
mayoria de sus miembros o de sus respectivos suplentes. El Consejo de
Administracion adoptara sus resoluciones por mayoria de votos de los miembros
presentes en cada Sesion.
ARTICULO DECIMO TERCERO. El Presidente no tendra voto de calidad en caso
de empate. Si el Presidente o el Secretario no asisten a la Sesion, el cargo
respectivo, para efectos de la Sesion, sera ocupado por el Consejero designado
por mayoria de votos de los miembros presentes. Las actas de Sesiones del
Consejo seran transcritas en un libro especialmente autorizado y seran firmadas
por quienes actuen como Presidente y Secretario de cada Sesion, asi como por
cualquier Consejero que asistiere y deseare hacerlo.
ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los Consejeros y sus respectivos Suplentes,
al
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tomer posesion, depositaran con la sociedad la cantidad de cien mil pesos,
moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de fianza otorgada
por compania autorizada por igual suma. Los Consejeros o el Administrador Unico,
segun sea el caso, no podran retirar las garantias otorgadas hasta que su
gestion haya sido aprobada por Asamblea de Accionistas. Los directores y demas
funcionarios de la sociedad otorgaran las garantias que determine la Asamblea de
Accionistas o el Consejo de Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO DECIMO QUINTO. La vigilancia de la sociedad estara encomendada a
uno o dos Comisarios, segun lo determine la Asamblea de Accionistas. Si la
Asamblea lo considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO DECIMO SEXTO. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTIMO. Los comisarios tendran las facultades y las
obligaciones establecidas as en el articulo ciento sesenta y seis de la Ley
General de Sociedades Mercantiles.
ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias senaladas
en el articulo decimo cuarto de estos estatutos para los Consejeros y solo
podran retiralras cuando su gestion haya sido aprobada por Asamblea de
Accionistas.
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ASAMBLEAS DE ACCIONISTAS
ARTICULO DECIMO NOVENO. Las Asambleas de Accionistas se celebraran en el
domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas para
tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y dos
de la Ley General de Sociedades Mercantiles. Todas las demos Asambleas seran
Ordinarias.
ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas deberan
ser hechas por el Administrador Unico o por el Presidente o el Secretario del
Conejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la Ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos un treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen a
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco de la
Ley General de Sociedades Mercantiles. Si el Administrador Unico o el Presidente
o el Secretario del Consejo de Administracion, segun sea el caso, o los
Comisarios, no hicieren la convocatoria dentro de los quince dias siguientes a
la fecha de la solicitud, un Juez de lo Civil o de Distrito del domicilio de la
sociedad hara la convocatoria a peticion
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de cualquier accionista interesado, debiendo exhibir sus acciones para tal
efecto, de conformidad con lo previsto por la ley.
ARTICULO VIGESIMO PRIMERO. Las convocatorias para Asambleas se publicaran
en el Diario Oficial de la Federacion o en el periodico oficial del Distrito
Federal, con por lo menos quince dias de anticipacion a la fecha fijada para la
Asamblea. Ademas, las convocatorias se notificaran por carta a los accionistas,
que se enviaran por correo certificado, con anterioridad a la fecha de
publicacion de la convocatoria, a las direcciones que aparezcan en el Libro de
Registro de Acciones de la sociedad. Tratandose de accionistas domiciliados en
el extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran la Orden del Dia y estaran firmadas por quien las
expida.
ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO VIGESIMO TERCERO. Solo los accionistas que aparezcan inscritos en
el Libro de Registro de Acciones de la sociedad como titulares de una o mas
acciones, seran admitidos en Asambleas.
ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados en
Asambleas por la persona o personas que designen mediante carta poder firmada
ante dos testigos, o por cualqluier otra forma de mandato conferido de acuerdo
con la ley.
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ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se transcribiran a un
libro especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO VIGESIMO SEXTO. Las Asambleas seran presididas por el
Administrador Unico o por el Presidente del Consejo de Administracion, segun sea
el caso. Sin embargo, en caso que quien desempene alguno de los cargos
mencionados estuviere ausente, la Asamblea en cuestion sera presidida por la
persona que sea designada por resolucion de la propia Asamblea. El Secretario
del Consejo de Administracion actuara como Secretario de las Asambleas de
Accionistas; sin embargo, en su ausencia, actuara como tal la persona designada
por resolucion de la Asamblea.
ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran cuando
menos una vez al ano dentro de los cuatro meses siguientes al cierre de cada
ejercicio social. Ademas de los asuntos especificados en la Orden del Dia, la
Asamblea Ordinaria Anual debera discutir, aprobar o modificar el informe del
Consejo de Administracion que incluya los informes y estados financieros a que
se refiere el enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles, tomando en cuenta el dictamen del Comisario o
Comisarios, y adoptar las medidas que juzgue oportunas; designar al
Administrador Unico a los miembros del Consejo de Administracion, segun sea el
caso, y al Comisario o Comisarios, asi como,
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determinar las remuneraciones al Administrador Unico o a los miembros del
Consejo de Administracion y a los Comisarios.
ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas Ordinarias
de Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO VIGESIMO NOVENO. Para que sean validas las Asambleas
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan reunir, por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la Asamblea se considerara legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social.
ARTICULO TRIGESIMO. TratAndose de Asambleas Ordinarias, las resoluciones
en ellas adoptadas seran validas cuando se emita voto favorable por la mayoria
de las acciones presentes, siempre y cuando hubiere existido quorum de presencia
en los terminos del articulo vigesimo octavo de los estatutos sociales.
ARTICULO TRIGESIMO PRIMERO. En el caso de Asambleas Extraordinarias, sus
resoluciones seran validas cuando sean adoptadas por el voto favorable de las
acciones que representen, cuando menos, el cincuenta por ciento de las acciones
que integren el capital social.
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INFORMACION FINANCIERA
ARTICULO TRIGESIMO SEGUNDO. Dentro de los cuatro meses siguientes al
cierre de cada ejercicio social, el Administrador Unico o el Consejo de
Administracion, en su caso, formulara los siguient es estados financieros, los
que deberan contener toda la informacion que sea necesaria para reflejar el
estado que guarda la situacion financiera y operativa de la sociedad, en
terminos del enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los resultados
de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera ocurridos
durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el capital
contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados financieros
anteriores.
ARTICULO TRIGESIMO TERCERO. Los estados financieros, junto con los
documentos justificativos, deberan ser entregados al Comisario o Comisarios con
un mes de anticipacion, cuando menos, a la fecha fijada para la Asamblea General
Anual Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
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ARTICULO TRIGESIMO CUARTO. Dentro de los quince dias siguientes a la fecha
en que les hayan sido entregados los estados financieros, los Comisarios deberan
presentar al Administrador Unico o al Consejo de Administracion, segun sea el
caso, un informe respecto de la veracidad, suficiencia y razonabilidad de la
informacion que les haya sido presentada por el Consejo de Administracion o por
el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del Consejo
de Administracion, segun sea el caso, disposicion de los accionistas, para su
revision, por lo menos durante los quince dias anteriores a la fecha senalada
para la Asamblea Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse publicar y
depositar, en la forma y terminos previstos en el articulo ciento setenta y
siete de la Ley General de Sociedades Mercantiles.
ARTICULO TRIGESIMO QUINTO. Las utilidades netas de cada ejercicio social
seran distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital;
2) El saldo de las utilidades netas se aplicara segun lo determine la
Asamblea General Ordinaria de Accionistas.
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ARTICULO TRIGESIMO SEXTO. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva, y si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada
unicamente hasta el pago del valor nominal de sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO TRIGESIMO SEPTIMO. La sociedad se disolvera en cualquiera de los
supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra en
liquidacion. La liquidacion se encomienda a uno o mas liquidadores designados
por Asamblea Extraordinaria de Accionistas. Si la Asamblea no hiciere la
designacion correspondiente la hara un Juez de lo Civil o de Distrito del
domicilio de la sociedad a solicitud de cualquier accionista.
ARTICULO TRIGESIMO OCTAVO. En ausencia de instrucciones expresas en
contrario dadas a los liquidadores por la Asamblea, la liquidacion se llevara a
cabo de acuerdo con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos perjudicial
para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance generl de liquidacion;
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5) Distribucion del remanente, si lo hubiere, entre los accionistas, en
proporcion al numero de sus acciones.
DISPOSICIONES GENERALES
ARTICULO TRIGESIMO NOVENO. Los socios fundadores, como tales, no se
reservan participacion alguna.
ARTUCO CUADRAGESIMO. En los terminos del articulo treinta y uno del
Reglamento de la Ley para Promover la Inversion Mexicana y Regular la Inversion
y para cumplir con la condicion a que se refiere el permiso otorgado por la
Secretaria de Relaciones Exteriores que ha sido transcrito en este instrumento,
los otorgantes se obligan formalmente a que todo extranjero que, en el acto de
la consitucion o en cualquier tiempo ulterior, adquiera un interes o
participacion social en la sociedad, se considerara por ese simple hecho como
mexicano respecto de uno y otra, asi como respecto de los bienes, derechos,
concesiones, participaciones o intereses de los que llegue a ser titular esta
sociedad, o bien de los derechos y obligaciones que deriven de los contractos en
que sea parte y por lo tanto a no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a sue convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
DISPOSICIONES TRANSITORIAS
PRIMERA. Las acciones en que se divide el capital minimo de la sociedad,
han sido integramente suscritas y pagadas en la siguiente forma:
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ACCIONISTAS ACCIONES CAPITAL
----------- -------- -------
JAFRA COSMETICS, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, suscribe nueve mil
novecientas noventa y seis acciones con valor
nominal de mil pesos cada una, que paga en dinero
efectivo. 9,996 $ 9,996,000.00
PLUMIBOL, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, suscribe una accion con
valor nominal de mil pesos, que paga en dinero
efectivo. 1 $ 1,000.00
CALZADA MARIANO ESCOBEDO 151-155,
SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con valor nomina1
de mil pesos, que paga en dinero efectivo. 1 $ 1,000.00
BRAUN DE MEXICO Y COMPANIA, DE
CAPITAL VARIABLE, suscribe una accion con
valor nominal de mil pesos que paga en dinero
efectivo. 1 $ 1,000.00
ORAL-B LABORATORIOS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, suscribe
una accion con valor nominal de mil pesos, que
paga en dinero efectivo. 1 $ 1,000.00
------ ----------------
TOTAL 10,000 $ 10,000,000.00
SEGUNDA. Se designan como Administrador Unico y Administrador Unico
Suplente de la Sociedad a los Senores Leticia Navarro Ochoa y Luis Rosas Monroy,
respectivamente.
TERCERA. Se designan como Funcionarios de la Sociedad a las siguientes
personas:
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Licenciado Miguel Angel Castaneda Perez- Director de Finanzas
Licenciado Eduardo Hurtado Badiola - Director de Relaciones Industriales
Licenciado Nemesio Garcia Naranjo - Sub-Director de Relaciones Industriales
CUARTA. Se designan como Comisario y Comisario Suplente de la sociedad a
los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez Islas,
respectivamente.
QUINTA. Los Administradores, Funcionarios y Comisarios designados han
aceptado sus cargos y tienen caucionado su manejo.
SEXTA. Se otorga en favor de los Senores Leticia Navarro Ochoa y Luis
Rosas Monroy, para que lo ejerciten conjunta o separademente, poder general con
todas las facultades a que refiere el articulo decimo de los estatutos sociales.
SEPTIMA. Se otorga en favor del Senor Licenciado Miguel Angel Castaneda
Perez, en su caracter de Director de Finanzas, poder general con las siguientes
facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo, fomular
querellas y denuncias penales y otorgar perdon; transigir, comprometer en
arbitros, absolver y articular posiciones, recusar jueces, recibir pagos y
ejecutar todos
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los demas actos expresamente autorizados por la ley, entre los que se incluye
representar a la sociedad ante autoridades y tribunales penales, civiles,
administrativos y del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) Suscribir titulos de credito en nombre de la sociedad en terminos del
articulo noveno de la Ley General de Titulos y Operaciones de Credito, asi como
para abrir y operar cuentas bancarias, cuentas con instituciones bursatiles y
cualquier otro tipo de cuentas en las que se depositen o inviertan fondos de la
sociedad, en el pais y en el extranjero, en moneda nacional y en moneda
extranjera, incluyendo facultades para girar instrucciones para la disposicion
de fondos asi como para designar a personas facultades tambien para girar tales
instrucciones, y
d) Para otorgar y revocar poderes en terminos de los parrafos a) y b) que
anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
OCATAVA. Se otorga en favor de los Licenciados Eduarto Hurtado Badiola y
Nemesio Garcia Naranjo, en su caracter de Director de Relaciones Industriales y
SubDirector de Relaciones Industriales respectivamente, para que lo ejerciten
conjunta o separadamente, poder general con las siguientes facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que
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requieran clausula especial conforme a la ley, sin limitacion alguna, en los
terminos del primer parrafo del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Civiles de las entidades que integran la Federacion, estando por lo
tanto facultados para desistirse aun del juicio de amparo, formular querellas y
denuncias penales y otorgar perdon; transigir, comprometer en arbitros, absolver
y articular posiciones, recusar jueces, recibir pavo y ejecutar todos los demas
actos expresamente autorizados por la ley, entre los que se incluye representar
a la sociedad ante autoridades y tribunales penales, civiles, administrativos y
del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion; y
c) Para otorgar y revocar poderes en terminos de los parrafos a) y b) que
anteceden, con o sin facultades de substitucion, y para reovcar poderes
otorgados por la sociedad.
NOVENA. Se otorga en favor de los licenciados Juan M. Steta Torres, Manuel
Vera Vallejo, German Muggenburg y Rodriguez Vigil y Luis Alfonso Cervantes
Muniz, para que lo ejerciten conjuncta o separadamente, poder general para
pleitos y cobranzas y para actos de administracion; sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal y sus
correlativos de los Codigos Civiles de los demas Estados de la
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Republica en donde se ejercite el mandato.
PERSONALIDAD
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL ANGEL
CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO CERVANTES
MUNIZ Y VICTOR MANUEL ROCHA DURAN, acreditan su personalidad en la siguiente
forma:
a) La LICENCIADA LETICIA NAVARRO OCHOA, con la escritura numero
veintinueve mil doscientos veinticuatro, otorgada en esta Ciudad, el once de
octubre de mil novecientos noventa, ante el suscrito Notario, JAFRA COSMETICS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el treinta y uno de agosto de mil novecientos ochenta y nueve, la
designo Director General y con tal caracter le otorgo poder general para pleitos
y cobranzas y para actos de administracion, sin limitacion alguna, en los
terminos de los dos primeros parrafos del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de
los Codigos Civiles de los demas Estados de la Republica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
b) El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, con la escritura numero
veintinueve mil doscientos veintiocho, otorgada en esta Ciudad, el once de
octubre de mil novecientos noventa, ante el suscrito Notario, PLUMIBOL,
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SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el veintiocho de febrero de mil novecientos noventa, lo designo
Director de Finanzas y con tal caracter le otorgo poder general para pleitos y
cobranzas y para actos de administracion, sin limitacion alguna, en los terminos
de los dos primeros parrafos del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de los
Codigos Civiles de los demas Estados de la Republica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
c) El SENOR GUSTAVO MADRINAN MICOLTA, con la escritura numero veintinueve
ail quinientos noventa y tres, otorgada en esta Ciudad, el veintiuno de
diciembre de mil novecientos noventa, ante el suscrito Notario, CALZADA MARIANO
ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la
Asamblea de Accionistas celebrada el veintiocho de diciembre de mil novecientos
ochenta y nueve le otorgo poder general para pleitos y cobranzas y para actos de
administracion, sin limitacion alguna, en los terminos de los dos primeros
parrafos del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil en
vigor en el Distrito Federal, y sus correlativos de los Codigos Civiles de los
demas Estados de la Repdblica en donde se ejercite el mandato, y facultad
expresa para otorgar poderes y revocarlos.
d) El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, con la escritura
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<PAGE>
numero ciento diecinueve mil setecientos diez, otorgada en esta Ciudad, el
dieciocho de febrero de mil novecientos ochenta y ocho, ante el Notario numero
seis del Distrito Federal, Licenciado Fausto Rico Alvarez, BRAUN DE MEXICO Y
COMPANIA, DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Socios celebrada el
cuatro de diciembre de mil novecientos ochenta y siete, le otorgo poder general
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal, y facultad
expresa para otorgar poderes y revocarlos. Dicha escritura fue inscrita en el
Registro Publico de la Propiedad de esta Capital, en el Folio Mercantil numero
siete mil trescientos treinta y cuatro.
e) El SENOR VICTOR MANUEL ROCHA DURAN, con la escritura numero diez mil
doscientos setenta y tres, otorgada en esta Ciudad, el veinticinco de septiembre
de mil novecientos noventa, ante el Notario numero ciento setenta y nueve del
Distrito Federal, Licenciado Juan Vicente Matute Ruiz, ORAL-B LABORATORIOS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo tomado en sesion del Consejo
de Administracion celebrada el seis de septiembre de mil novecientos noventa, lo
designo Director de Finanzas, y con tal caracter le otorgo poder general para
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal, facultad
para suscribir titulos de credito en los terminos
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del articulo noveno de la Ley General de Titulos y Operaciones de Credito, y
facultad expresa para otorgar poderes y revocarlos.
En dichas escrituras quedo debidamente acredita la constitucion y
capacidad legal de las sociedades mandantes.
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL ANGEL
CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO CERVANTES
MINUZ Y VICTOR MANUEL ROCHA DURAN, declaran bajo protesta de decir verdad que
los poderes que ejercitan no les han sido revocados ni modificados en forma
alguna y que sus respectivas representadas tienen capacidad legal.
GENERALES
Los comparecientes declaran por las suyas ser:
La LICENCIADA LETICIA NAVARRO OCHOA, originaria de Colima, Colima, que
nacio el diez de noviembre de mil novecientos cincuenta y tres, mexicana por
nacimiento, hija de padres mexicanos, casada, licenciada en administracion de
empresas, con domicilio en Alberto Zamora numero ochenta y cuatro, Coyoacan, en
esta Ciudad.
El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, originario de esta Ciudad, que
nacio el veintisiete de septiembre de mil novecientos cuarenta, mexicano por
nacimiento, hijo de padres mexicanos, casado, ejecutivo, con domicilio en
Plazuela de
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Monte Alegre numero ciento nueve, colonia Lomas de la Herradura, Estado de
Mexico.
El SENOR GUSTAVO MADRINAN MICOLTA, originario de Cali, Colombia, que nacio
el dieciocho de abril de mil novecientos cuarenta y uno, colombiano, casado,
director de manufactura, con domicilio en Paseo de la Reforma numero dos mil
doscientos treinta y tres, departamento doscientos dos, colonia Lomas de
Chapultepec, en esta Ciudad, y acredita su legal estancia en el Pais con la
libreta FM DOS numero doscientos cincuenta y seis mil cuatrocientos ochenta y
cinco, expedida el cuatro de junio de mil novecientos noventa, en la que tiene
reconocido el caracter de immigrante.
El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, originario de esta Ciudad, que
nacio el dieciseis de noviembre de mil novecientos cincuenta y cinco, mexicano
por nacimiento, hijo de padres mexicanos, casado, abogado, con domicilio en
Campos Eliseos numero trescientos cuarenta y cinco, tercer piso, colonia
Chapultepec Polanco, en esta Ciudad.
EL SENOR VICTOR MANUEL ROCHA DURAN, originario de esta Ciudad, que nacio
el dos de septiembre de mil novecientos cuarenta y cinco, mexicano por
nacimiento, hijo de padres mexicanos, casado, director de finanzas, con
domicilio en La Joya numero treinta y cuatro, casa veintiuno, Tepepan, Tlalpan,
en esta Ciudad.
YO, EL NOTARIO, DOY FE Y CERTIFICO:
a) Que conozco personalmente a los comparecientes quienes a mi juicio
tienen capacidad legal por no constarme nada en contrario.
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b) Que les fue leida integramente la presente escritura.
c) Que a los comparecientes les explique el valor y las consecuencias
legales del contenido de esta escritura y les informe de las penas en que
incurren quienes declaran con falsedad ante Notario, con excepcion del
LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, por ser perito en derecho.
d) Que lo relacionado e inserto concuerda con sus originales a que me
remito y tuve a la vista.
e) Que los comparecientes manifestaron al suscrito Notario su conformidad
con esta escritura, para constancia de lo cual la firman el dia de su fecha.
Firma de la Licenciada Leticia Navarro Ochoa.
Firma del Senor Miguel Angel Castaneda Perez.
Firma del Senor Gustavo Madrinan Micolta.
Firma del Licenciado Luis Alfonso Cervantes Muniz.
Firma del Senor Victor Manuel Rocha Duran.
Ante mi. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.E. Estado
Unidos Mexicanos.
Autorizo definitivamente en Mexico a trece de febrero de mil novecientos
noventa y uno. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F. Estados
Unidos
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Mexicanos.
NOTAS MARGINALES
NOTA PRIMERA MEXICO A ONCE DE ENERO DE MIL NOVECIENTOS NOVENTA Y UNO CON
ESTA FECHA SE DIO AVISO A LA SECRETARIA DE RELACIONES EXTERIORES EN LOS TERMINOS
DE LOS ARTICULOS 31 PARRAFO 3 Y 32 FRACCION II, PARRAFO 4 DEL REGLAMENTO DE LA
LEY PARA PROMOVER LA INVERSION MEXICANA Y REGULAR LA INVERSION EXTRANJERA, QUE
SE RECIBIO CON EL NUMERO 3119 COPIA DEL CUAL SE AGREGA AL APENDICE DE ESTE
INSTRUMENTO CON LA LETRA B. DOY FE. NUNEZ. FIRMADO.
NOTA SEGUNDA MEXICO A TRECE DE FEBRERO DE MIL NOVECIENTOS NOVENTA Y UNO
CON ESTA FECHA SE AGREGA AL APENDICE DE ESTA ESCRITURA EL AISO DE INSCRIPCION EN
EL REGISTRO FEDERAL DE CONTRIBUYENTES RELATIVO A ESTA SOCIEDAD CON LA CLAVE
DIR-910102AV8. DOY FE. NUNEZ. FIRMADO.
ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO CIVIL.
En todos los poderes generates para pleitos y cobranzas bastara que se
diga que se otorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley para que se entiendan conferidos
sin limitacion alguna.
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En los poderes generales para administrar bienes bastard expresar que se
dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que se
den con ese caracter para que el apoderado tenga toda clase de facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mencionados, las
facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los notarios insertaran este articulo en los testimonios de los poderes
que otorguen.
ES PRIMER TESTIMONIO QUE SE EXPIDE PARA DIRSAMEX, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE A FIN DE QUE LE SIRVA PARA ACREDITAR SU CONSTITUCION.
VA EN DOCE FOJAS CORREGIDAS.
MEXICO, DISTRITO FEDERAL A DIECINUEVE DE FEBRERO DE MIL NOVECIENTOS
NOVENTA Y UNO. DOY FE.
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LIBRO NUMERO NOVENTA Y SIETE
ESCRITURA NUMERO (3,444) TRES MIL CUATROCIENTOS CUARENTA Y CUATRO.
EN MEXICO, DISTRITO FEDERAL, a los veintiocho dias del mes de abril de mil
novecientos noventa y cinco. Yo, el Licenciado CARLOS ANTONIO REA FIELD, titular
de la Notaria ciento ochenta y siete del Distrito Federal, hago constar que ante
mi comparecen: los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO
SAINZ ORANTES, ambos en su caracter de Delegados Especiales de "DIRSAMEX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y exponen que formalizan:
LA PROTOCOLIZACION PARCIAL DE UN ACTA DE ASAMBLEA GENERAL ORDINARIA ANUAL
Y EXTRAORDINARIA DE ACCIONISTAS de la expresada Sociedad;
LA PROTOCOLIZACION DE LOS NUEVOS ESTATUTOS SOCIALES de la referida
Sociedad; y
El OTORGAMIENTO DE PODERES GENERALES derivados de dicha acta que se
protocoliza;
Actos que se contienen en los antecedentes y clausulas siguientes:
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ANTECEDENTES
I. ESCRITURA CONSTITUTIVA. Por escritura numero veintinueve mil
seiscientos nueve, de fecha dos de enero de mil novecientos noventa y uno,
otorgada ante el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno
del Distrito Federal, incrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta ciudad, el veinticinco de junio de mil
novecientos noventa y uno, en el folio mercantil numero ciento cuarenta y cinco
mil cuatrocientos cincuenta, instrumento por el que previo permiso concedido por
la Secretaria de Relaciones Exteriores marcado con el numero cero nueve millones
sesenta y tres mil setecientos setenta y siete, en el expediente numero nueve
mil nueve millones sesenta y seis mil setecientos teinta y siete, se constituyo
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, con domicilio en el Distrito
Federal, una duracion de NOVENTA Y NUEVE ANOS, con clausula de admision de
extranjeros. De la escritura que se viene relacionando, copio en lo conducente
lo siguiente:
"....ESTATUTOS....OBJETO....ARTICULO TERCERO. La sociedad tendra por
objeto: 1) La prestacion de todo tipo de servicios, en especial servicios
administrativos, a todo tipo de personas fisicas o morales, comerciantes o no;
2) La prestacion de toda clase de servicios tecnicos, administrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios; 3) Adquirir, establecer, disponer de, dar
o tomar en arrendamiento o subarrendamiento, en comodato
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o en subcomodato, administrar, operar o poseer en cualquier forma permitida por
la ley fabricas, plantas industriales, talleres, laboratorios, almacenes o
bodegas, oficinas, tiendas y otros establecimientos y bienes inmuebles como sea
necesario para el logro de su objeto social; 4) Adquirir, enajenar, importar,
exportar, gravar, dar o tomar en arrendamiento y negociar en cualquier forma con
toda clase de bienes muebles; 5) Solicitar, comprar, vender, dar o tomar en uso,
ceder, registrar y adquirir marcas industriales y de servicios, nombres
comerciales, derechos de autor, patentes, invenciones y procesos, asi como
disponer de ellos; 6) actuar como contratista, subcontratista, agente o
representante y designar subcontratistas, agentes o representantes; 7) Adquirir
acciones, participaciones, partes de interes y obligaciones de toda clase de
empresas o sociedades, sean civiles o mercantiles, y formar parte de ellas; 8)
Representar o ser agente o comisionista de negociaciones comerciales o
industriales nacionales o extranjeras; 9) Dar o tomar dinero en prestamo con o
sin garantia, emitir bonos, valores hipotecarios, obligaciones y cualquiera
otros titulos de credito con la intervencion de las instituciones senaladas por
la ley, y otorgar fianzas o garantias de cualquier clase respecto de
obligaciones contraidas o de titulos emitidos o aceptados por la propia sociedad
o por terceros; 10) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito; y 11) Ejecutar toda clase de actos y celebrar toda clase de
contratos permitidos por la Ley....CAPITAL SOCIAL Y ACCIONES - ARTICULO QUINTO.
- - El capital social es variable. El capital fijo sin derecho a retiro es de DIEZ
MILLONES DE
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PESOS, Moneda Nacional, representado por Diez Mil acciones ordinarias,
nominativas con valor nominal de MIL PESOS, Moneda Nacional cada
una....ADMINISTRACION DE LA SOCIEDAD. - ARTICULO OCTAVO. La administracion de la
sociedad estara confiada a un Administrador Unico o a un Consejo de
Adminitracion formado por el numero de miembros que determine la Asamblea de
Accionistas. Si la Asamblea lo considera pertiniente, podra designar un
Administrador Unico Suplente o a Consejeros Suplentes, segun sea el caso. Los
Consejeros y sus Suplentes podran ser o no accionistas; desempenaran sus cargos
hasta las personas designadas para substituirlos tomen posesion de sus puestos;
podran ser reelectos y recibiran las remuneraciones que determine la Asamblea de
Accionistas....ARTICULO DECIMO. - El Consejo de Adminitracion o el Administrador
Unico, en su caso, sera el representante legal de la sociedad y tendra las
siguientes facultades y obligaciones: 1. Ejercitar el poder para pleitos y
cobranzas, con todas las facultades generales y las especiales que requieran de
clausula espcial de acuerdo con la ley, sin limitacion alguna, de conformidad
con lo dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de
los Codigos Civiles de las entidades federativas de los Estados Unidos
Mexicanos, estando por lo tanto facultado para desistirse de procedimientos, aun
del juicio de amparo, formular querellas y denuncias penales y desistirse de
ellas; coadyuvar con el Ministerio Publico y otorgar el perdon; transigir;
someterse a arbitraje; formular y absolver posiciones; recusar jueces; recibir
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pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penale, civiles, administrativos y del trabajo; 2. Administrar bienes de acuerdo
con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 3. Ejecutar actos de dominio de acuerdo con lo previsto en el
tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicano; 4. Suscribir
titulos de credito de conformidad con el articulo noveno de la Ley General de
Titulos y Operaciones de Credito; 5. Abrir, operar y cerrar cuentas bancarias a
nombre de la sociedad y designar a las personas que puedan girar contra las
mismas; 6. Nombrar y remover al Director General y demas directores, gerentes,
funcionarios y empleados de la sociedad y determinar sus condiciones de trabajo,
remuneraciones y facultades; 7. Formular reglamentos interiores de trabajo; 8.
Convocar a Asambleas de Accionistas y ejecutar sus resoluciones; 9. Llevar a
cabo todos los actos autorizados por estos estatutos de la sociedad o que sean
consecuencia de los mismos; 10. Conferir poderes generales y especiales en los
terminos de los puntos uno, dos, tres, cuatro y cinco anteriores, con o sin
facultades de substitucion, asi como revocar los poderes que hubieren sido
otorgados por la sociedad...ARTICULO DECIMO CUARTO. Para garantizar el desempeno
de sus
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cargos el Administrador Unico o, en su caso, los Consejeros y sus respectivos
Suplentes, al tomar posesion, depositaran con la sociedad la cantidad de cien
mil pesos, moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido aprobada por Asamblea de Accionistas.
Los directores y demas functionarios de la sociedad otorgaran las garantias que
determine la Asamblea de Accionistas o el Consejo de Administracion que los
designe. VIGILANCIA DE LA SOCIEDAD - ARTICULO DECIMO QUINTO. La vigilancia de la
sociedad estara encomendada a uno o dos Comisarios, segun lo determine la
Asamblea de Accionistas. Si la Asamblea lo considerare pertinente designara uno
o dos Comisarios Suplentes. ARTICULO DECIMO SEXTO. Los Comisarios no necesitan
ser accionistas de la sociedad; podran ser reelectos y desempenaran su cargo
hasta que las personas designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTEMO. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles. ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las
garantias senaladas en el articulo decimo cuarto de estos estatutos para los
Consejeros y solo podran retirarlas cuando su gestion haya sido aprobada por
Asamblea de Accionistas. ASAMBLEAS DE ACCIONISTAS. ARTICULO DECIMO NOVENO. Las
Asambleas de Accionistas se celebraran en el domicilio de la sociedad. Seran
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Extraordinarias las Asambleas convocadas para tratar cualquiera de los asuntos
incluidos en el Articulo ciento ochenta y dos de la Ley General de Sociedades
Mercantiles. Todas las demas Asambleas seran Ordinarias. ARTICULO VIGESIMO. Las
convocatorias para Asambleas de Accionistas deberan ser hechas por el
Administrador Unico o por el Presidente o el Secretario del Consejo de
Administracion, sea el caso o, en la medida en que lo permita la Ley, por el
Comisario o Comisarios....ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran
celebrarse sin previa publicacion de convocatoria si el capital social esta
representado en su totalidad y participa al momento de la votacion. ARTICULO
VIGESIMO TERCERO. Solo los accionistas que aparezcan inscritos en el Libro de
Registro de Acciones de la sociedad como titulares de una o mas acciones, seran
admitidos a las Assembleas. ARTICULO VIGESIMO CUARTO. Los Accionists podran ser
representados en las Asambleas por la persona o personas que designen mediante
carta poder firmada ante dos testigos, o por cualquier otra forma de mandato
conferido de acuerdo con la Ley. ARTICULO VIGESIMO QUINTO. Las actas de las
Asambleas se transcibiran a un libro especialmente autorizado y deberan ser
firmadas por las personas que hayan fungido como Presidente y Secretario de la
Asamblea, asi como por los Comisarios presentes y por los accionistas o
representantes de accionistas que desearen firmar. ARTICULO VIGESIMO SEXTO. Las
Asambleas seran presididas por el Administrador Unico o por el Presidente del
Consejo de Administracion, segun sea el caso. Sin embargo, en caso de que quien
desempene alguno de los cargos mencionados
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estuviere ausente, la Asamblea en cuestion sera presidida por la persona que sea
designada por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea. ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran
cuando menos una vez al ano dentro de los cuatro meses siguientes al cierre de
cada ejercicio social. Ademas de los asuntos especificados en la Orden de Dia,
la Asamblea Ordinaria Anual debera....designar al Administrador Unico a los
miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios....ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas
Ordinarias de Accionistas celebradas en virtud de primera o ulterior
convocatoria deberan reunir la presencia de, por lo menos, el cincuenta por
ciento de las acciones representatives del capital social. ARTICULO VIGESIMO
NOVENO. Para que sean validas, las Asambleas Extraordinarias de Accionistas
celebradas en virtud de primera convocatoria, deberan reunir, por lo menos, la
presencia del setenta y cinco por ciento de las acciones representativas del
capital social. En caso de segunda o ulterior convocatoria, la Asamblea se
considerara legalmente instalada si estuviere presente, cuando menos, el
cincuenta por ciento de las acciones representativas del capital social.
ARTICULO TRIGESIMO. Tratandose de Asambleas Ordinarias, las resoluciones en
ellas adoptadas seran validas cuando se emita voto favorable por law mayoria de
las acciones presentes,
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siempre y cuando huebiere existido quorum de presencia en los terminos del
articulo vigesimo octavo de los estatutos sociales. ARTICULO TRIGESIMO PRIMERO.
En el caso de Asambleas Extraordinarias, sus resoluciones seran validas cuando
sean adoptadas por el voto favorable de las acciones que representen, cuando
menos, el cincuenta por ciento de las acciones que integren el capital social .
. . .DISPOSICIONES TRANSITORIAS ... SEGUNDA. Se designan como Administrador
Unico ... de la Sociedad, a los senores Leticia Navarro Ochoa ... CUARTA. Se
designan como Comisario y como Comisario Suplente de la sociedad a los
Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez Islas,
respectivamente. QUINTA. Los Administradores, Funcionarios y Comisarios
designados han aceptado sus cargos y tienen caucionado su manejo...."
II. NOMBRAMIENTO DEL ADMINISTRADOR UNICO SUPLENTE. Por escritura numero
trienta y un mil seiscientos trienta y siete, de fecha diecinueve de diciembre
de mil novecientos noventa y uno, otorgada ante el Licenciado Roberto Nunez y
Bandera, titular de la Notaria uno del Distrito Federal, inscrito su primer
testimonio en el Registro Publico de la Propiedad y de Comercio de esta ciudad,
en el folio mercantil ciento cuarenta y cinco mil cuatrocientos cincueta,
instrumento por el que se protocolizo un acta de Asamblea General Ordinaria,
celebrada por los accionistas de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, el viente de septiembre de mil novecientos noventa y uno, por la que
se formalizaron entre otros acuerdos, el de
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designar como Administrador Unico Suplente de la expresada Sociedad, al senor
LUIS ALFONSO CERVANTES MUNIZ. De la escritura que se viene relacionando, copio
en lo conducente lo siguente:
"...DECLARACIONES...II...acta que a la letra dice: "En el Distrito
Federal, Mexico, a las 10:00 del 20 de septiembre de 1991, se reunieron en el
domicilio social de DIRSAMEX, S.A. de C.V.....para celebrar la ASAMBLEA GENERAL
ORDINARIA DE ACCIONISTAS a la que fueron previa y oportunamente convocados....La
Presidente designo escrutadores a....quienes, despues de aceptar sus cargos,
revisaron los instrumentos conteniendo los mandatos de los representantes de los
accionistas y el libro de Registro de Acciones de la sociedad y certificaron, en
union del Comisario, que se encontraba representada en la Asamblea la totalidad
de las acciones de la sociedad acutalmente en circulacion, distribuidas en la
siguiente forma: ACCIONISTAS... ACCIONES SERIE "A"....ACCIONES SERIE
"B"....VOTAS...TOTAL. 10,000. En virtud de encontrarse debidamente representada
la totalidad de las acciones emitidas por la sociedad actualmente en
circulacion, la Presidente declaro la Asamblea legalmente instalada, no obstante
no haberse publicada la convocatoria respectiva, con fundamento en el articulo
188 de la Ley General de Sociedades Mercantiles y en el articulo vigesimo
segundo de los estatutos sociales. La Asamblea, por unanimidad de votos, aprobo
la declaratoria anterior y procedio a desahogar los puntos contenidos en el
siguiente. ORDEN DEL DIA. I. Designacion de la persona que habra de fungir como
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Administrador Unico Suplente de la sociedad....PUNTO UNO.....Despues de comentar
las anteriores propuestas, la Asamblea, por unanimidad de votos, adopto las
siguientes. RESOLUCIONES. "1. Se designa, con efectos a partir de la fecha de
esta Asamblea al senor Luis Alfonso Cervantes Muniz Administrador Unico Suplente
de DIRSAMEX, S.A. DE C.V." - "2. Para el desempeno de sus funciones como
Administrador Unico Suplente de DIRSAMEX, S.A. DE C.V., el senior Luis Alfonso
Cervantes Muniz tendra la representacion de la sociedad y las siguientes
facultades y obligaciones: - 1. - Ejercitar el poder de la sociedad para pleitos
y cobranzas, con todas las facultades generales y las especiales que requieran
de clausula especial de acuerdo con la ley, sin limitacion alguna, de
conformidad con lo dispuesta por el primer parrafo del articulo 2554 del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos, estando por lo
tanto facultado para desistirse de procedimientos, aun del juicio de amparo;
formular querellas y denuncias penales y disistirse de ellas; coadyuvar con el
Ministerio Publico y otorgar el perdon, cuando proceda; transigir; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la ley, entre los que se incluye representar a la sociedad ante autoridades
y tribunales penales, civiles, administrativos y del trabajo; 2. -Administrar
bienes de acuerdo con lo dispuesto por el segundo parrafo del articulo 2554 del
Codigo Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos; 3. -
Ejecutar actos de
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dominio de acuerdo con lo previsto en el tercer parrafo del articulo 2554 del
Codigo Civil para el Distrito Federal y articulos correlativos de los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos; 4. -
Suscribir titulos de credito de conformidad con el articulo noveno de la Ley
General de Titulos y Operaciones de Credito; 5. - Abrir, operar y cerrar cuentas
bancarias a nombre de la sociedad y designar a las personas que puedan girar
contra las mismas; 6. - Nombrar y remover al Director General y demas
directores, gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades; 7. - Formular reglamentos
interiores de trabajo; 8. - Convocar a Asambleas de Accionistas y ejecutar sus
resoluciones; 9. - Llevar a cabo todos los actos autorizados por los estatutos
de la sociedad o que sean consecuencia de los mismos; 10. - Conferir poderes
generales y especiales en los terminos de los parrafos 1, 2, 3, 4 y 5
anteriores, con o sin facultades de substitucion, asi como revocar los poderes
que hubieren sido otorgados por la sociedad". - Estando presente el senor Luis
Alfonso Cervantes Muniz, manifesto a la Asamblea la aceptacion de su encargo y
protesto su fiel y legal desempeno, exhibiendo y entregando en el acto la
cantidad de $100,000.00 M.N. (cien mil pesos 00/100, moneda nacional) en dinero
en efectivo como caucion de su manejo, dando asi cumplimiento a lo dispuesto en
el articulo decimo cuarto de los estatutos de la sociedad.....No habiendo otro
asunto que tratar se suspendio la Asamblea para la redaccion de la presente
acta, misma que fue leida, aprobada y firmada por todos los presentes. - Se hace
constar que al momento de
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adoptarse todas y cada una de las resoluciones contenidas en esta acta estuvo
representada y participo la totalidad del capital de la sociedad.....Se levanto
la Asamblea a las 11:00 del 20 de septiembre de 1991......"
III. - RATIFICACION DE LOS NOMBRAMIENTOS DEL ADMINISTRADOR UNICO, DEL
ADMINISTRADOR UNICO SUPLENTE, DEL COMISARIO Y DEL COMISARIO SUPLENTE. - Por
escritura numero cincuenta y tres mil ciento setenta y siete, de fecha
veintitres de junio de mil novecientos noventa y cuatro, otorgada ante el
Licenciado Moises Farca Charabati, titular de la Notaria noventa y uno del
Distrito Federal, inscrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta ciudad, el siete de septiembre de mil
novecientos noventa y cuatro, en el folio mercantil ciento cuarenta y cinco mil
cuatrocientos cincuenta, instrumento por el que se protocolizo parcialmente un
acta de Asamblea General Ordinaria Anual, celebrada por los accionistas de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el veinticuatro de agosto de
mil novecientos noventa y tres, por la que se formalizaron entre otros acuerdos,
el de ratificar en los cargos que a continuacion se indican, a las siguientes
personas:
- - ADMINISTRADOR UNICO: a la senora LETICIA NAVARRO OCHOA.
- - ADMINISTRADOR UNICO SUPLENTE: al senor LUIS ALFONSO CERVANTES MUNIZ.
- - COMISARIO PROPIETARIO: al senor FERNANDO HOLGUIN - MAILLARD.
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- - COMISARIO SUPLENTE: al senor EDUARDO RODRIGUEZ ISLAS.
IV. ACTA QUE SE PROTOCOLIZA PARCIALMENTE. - Los comparecientes me exhiben
el libro de actas de Asambleas de Accionistas de "DIRSAMEX". SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, en el que de fojas treinta y cinco a cincuenta y cuatro,
inclusive, aparece asentada un acta de Asamblea General Ordinaria Anual y
Extraordinaria de la expresada Sociedad, celebrada con fecha primero de agosto
de mil novecientos noventa y cuatro, que a continuacion copio en lo conducente:
"En el Distrito Federal, Mexico, a las 16:00 horas del 1 de agosto de
1994, se reunieron en el domicilio social de DIRSAMEX, S.A. DE C.V., los senores
Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de C.V. y de
Plumibol, S.A. de C.V., Alejandro Nila Rosales, en representacion de Calzada
Mariano Escobedo 151-155, S.A. de C.V., de Braun de Mexico y Compania, de C.V. y
de Oral-B Laboratorios, S.A. de C.V., para celebrar ASAMBLEA GENERAL ORDINARIA
ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de DIRSAMEX, S.A. DE C.V., a la que fueron
previa y oportunamente convocados. Estuvieron tambien presentes los senores
Fernando Holguin Maillard, Comisario de la sociedad, Luis Alfonso Cervantes
Muniz, Julio Pedro Cepeda Rebollo y Sergio Rene Aparicio Gonzalez, quienes
fueron invitados al evento. Por designacion unanime de los presentes fungio como
Presidente de la Asamblea el senor Alejandro Sainz Orantes. Asimismo se designo
como Secretario al senor Luis Alfonso Cervantes Muniz. - El Presidente designo
escrutador al senor
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Alejandro Nila Rosales quien, despues de aceptar su cargo, reviso los
instrumentos conteniendo los mandatos de los representantes de los accionistas y
el Libro de Registro de Acciones de la sociedad y certifico, en union del
Comisario, que se encontraba representada en la Asamblea la totalidad de las
acciones de la sociedad actualmente en circulacion, distribuidas en la siguiente
forma:
ACCIONES SERIE
ACCIONISTA "A" "B" VOTOS
Grupo Jafra, S.A. de C.V.
representada por el senor Alejandro
Sainz Orantes Plumibol, S.A. de
C.V. 9,996 ---- 9,996
- -- representada por el senor
Alejandro Sainz Orantes Calzada
Mariano Escobedo 151-155, S.A. de
C.V. 1 ---- 1
- -- representada por el senor
Alejandro Nila Rosales Braun de
Mexico y Compania, de C.V. ---- 1 1
- -- representada por el senor
Alejandro Nila Rosales ---- 1 1
Oral-B Laboratorios, S.A. de C.V.
representada por el senor Alejandro
Nila-Rosales ---- 1 1
TOTAL 9,997 3 10,000
En virtud de encontrarse debidamente representada en la Asamblea la
totalidad de las acciones emitidas por la sociedad actualmente en circulacion,
el Presidente declaro la misma legalmente instalada, no obstante no haberse
publicado la convocatoria respectiva, con fundamento en el articulo 188 de la
Ley General de Sociedades Mercantiles. - La
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Asamblea, por unanimidad de votos, aprobo la declaratoria anterior y procedio a
desahogar los asuntos contenidos en el siguiente. - ORDEN DEL DIA.
V. Designacion de las personas que habran de fungir como Administrador
Unico y Administrador Unico Suplente y como Comisario y Comisario Suplente de la
sociedad, respectivamente.
VII.Designacion del senor Julio Pedro Cepeda Rebollo como Director General
de la sociedad y otorgamiento de poderes en su favor.
VIII. Designacion del senor Sergio Rene Aparicio Gonzalez como Director de
Relaciones Industriales de la sociedad y otorgamiento de poderes en su favor.
IX. Modificacion total a los estatutos que rigen a la sociedad para
adecuarlos a las reformas a la Ley General de Sociedades Mercantiles en vigor a
partir del 11 de junio de 1992.
X. Designacion de delegados para formalizar las resoluciones adoptadas por
la Asamblea....PUNTO CINCO. - En relacion con este quinto punto del Orden del
Dia el Presidente de la Asamblea informo a los presentes sobre la renuncia, con
efectos a partir del 4 de julio de 1994, de la senora Leticia Navarro Ochoa a su
cargo de Administrador Unica de la sociedad. - Preciso el senor Alejandro Sainz
Orantes que la renuncia arriba mencionada surte sus efectos a partir del 4 de
julio de 1994. - Por su parte, el senor Alejandro Nila Rosales, representante en
la Asamblea de los accionistas Calzada Mariano Escobedo 151-155, S.A. de C.V. y
de Braun de Mexico y Compania, de C.V. propuso
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que en el evento que fuera aceptada la renuncia sometida a consideracion de la
Asamblea i) se designase al senor Julio Pedro Cepeda Rebollo Administrador Unico
de la sociedad, y ii) se ratificase la designacion del senor Luis Alfonso
Cervantes Muniz para continuar desempanandose como Administrador Unico Suplente.
Incluyo tambien en su propuesta el senor Nila Rosales la ratificacion de la
designacion de los senores Fernando Holguin Maillard y Eduardo Rodriguez Islas
como Comisarios Propietario y Suplente, respectivamente, de la sociedad. -
Entonces el Secretario de la Asamblea, senor Luis Alfonso Cervantes Muniz,
informo a los presentes que la designacion del senor Julio Pedro Cepeda Rebollo
como Administrador Unico de la sociedad fue debidamente autorizada por el
Insituto Nacional de Migracion, como consta en el oficio 12207 dictado por dicha
autoridad en el expediente 5/214490 de 1o. de junio de 1994, con fundamento en
las disposiciones aplicables de la Ley General de Poblacion. Aclaro el proprio
senor Cervantes Muniz que por lo que respecta a la ratificacion de su
designacion no se requiere autorizacion alguna por parte de las autoridades
migratorias, dada su nacionalidad mexicana. - Despues de intercambiar
impresiones sobre lo vertido respecto de este quinto punto del Orden del Dia,
los presentes, por unanimidad de votos, adoptaron las siguientes.
RESOLUCIONES
"1. Se acepta, con efectos al 4 de julio de 1994, la renuncia sometida por
la senora Leticia Navarro Ochoa a su cargo de Administradora Unica de la
sociedad, cargo para el
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que fue designada por escritura publica 29,609 de 2 de enero de 1991 otorgada
por el licenciado Roberto Nunez y Bandera, Notario Publico 1 del Distrito
Federal, el primer testimonio de la cual quedo debidamente inscrito en el
Registro Publico de Comercio de esta capital en el folio mercantil 145450".
"2. Se agradecen a la senora Leticia Navarro Ochoa los relevantes
servicios que presto a la sociedad en su desempeno como Administradora Unico de
la misma, y todos los accionistas y representantes de accionistas hacen votos
para que tenga el mayor de los exitos en sus nuevas e importantes
responsabilidades en Jafra Cosmetics International, Inc."
"3. Con efectos a partir del 4 de julio de 1994 se designa al senor Julio
Pedro Cepeda Rebollo como Administrador Unico de DIRSAMEX, S.A. DE C.V.,
haciendose constar que la designacion que en este acto se resuelve fue
debidamente autorizada por el Insituto Nacional de Migracion, como consta en el
oficio 12207 dictado por dicha autoridad en el expediente 5/214490 de 1o. de
junio de 1994, con fundamento en las disposiciones aplicables gran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo;
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b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) La realizacion de actos que involucren las mas amplias facultades de
administracion y direccion por lo que respecta a la planeacion, organizacion,
mando y control del personal de DIRSAMEX, S.A. DE C.V. y, en consecuencia, por
ministerio del articulo 11 de la Ley Federal del Trabajo, habra de tener el
caracter de representante legal de DIRSAMEX, S.A. DE C.V. en sus relaciones con
los trabajadores; asimismo se le otorga, sin limitacion alguna, en su caracter
de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion. De manera enunciativa y no
limitativa, se mencionan, entre otras, facultades para representar a DIRSAMEX,
S.A. DE C.V.: i) ante toda clase de autoridades administrativas y judiciales,
tanto de caracter municipal como estatal y federal, ante el Instituto del Fondo
Nacional para la Viviende la Ley General Poblacion".
"4. Se ratifica la designacion del senor Luis Alfonso Cervantes Muniz como
Administrador Unico Suplente de la sociedad".
"5. Se ratifica la designacion de los senores Fernando Holguin Maillard y
Eduardo
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Rodriguez Islas como Comisarios Proprietario y Suplente, respectivamente, de
DIRSAMEX, S.A. DE C.V."
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo
procedio a agradecer a la misma su designacion como Administrador Unico de
DIRSAMEX, S.A. DE C.V., manifestando que realizara su mejor esfuerzo para
cumplir cabalmente con sus obligaciones en tal caracter, y acto seguido exhibio
en dinero efectivo cien nuevos pesos, moneda nacional, como garantia de su
gestion, dando asi cumplimiento a lo dispuesto en el articulo XIV de los
actuales estatutos sociales de DIRSAMEX, S.A. DE C.V.
PUNTO SIETE
En relacion con este septimo punto del Orden del Dia, el Presidente de la
Asamblea comento a los presentes la conveniencia de designar al senor Julio
Pedro Cepeda Rebollo como Director General de la sociedad, quien para el
desempeno de sus funciones habra de ser investido de poderes idoneos.
Despues de comentar sobre la propuesta del Presidente, la Asamblea, por
unanimidad de votos, adopto las siguientes.
RESOLUCIONES
"1. Con efectos a partir del 4 de julio de 1994 se designa al senor Julio
Pedro Cepeda Rebollo Director General de DIRSAMEX, S.A. DE C.V., quien como
garantia de su gestion deposito en la caja de la sociedad, la cantidad de cien
nuevos pesos, moneda nacional, y para el desempeno de sus funciones gozara del
poder general de la
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sociedad para: a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que inteda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las
Juntas de Conciliacion y Arbitraje, tanto locales como federales, y ante las
autoridades laborales a que se refiere el articulo quinientos veintitres de la
Ley Federal del Trabajo, iii) en toda clase de procedimientos, incluyendo el del
amparo, y iv) compareciendo y actuando, de acuerdo con lo dispuesto en los
articulos once, seiscientos noventa y dos, fraccion II, ochocientos setenta y
seis, setecientos ochenta y seis, setecientos ochenta y siete y demas aplicables
de la Ley Federal del Trabajo, en la etapa conciliatoria, en la articulacion y
absolucion de posiciones y en toda la secuela de los juicios laborales en que
DIRSAMEX, S.A. DE C.V. sea parte o tercera interesada; d)Suscribir y endosar
titulos de credito en nombre y representacion de la sociedad, en terminos del
articulo noveno de la Ley General de Titulos y Operaciones de Credito, asi como
abrir, operar y cerrar cuentas de la sociedad con instituciones bancarias e
instituciones bursatiles, tanto del pais como del extranjero, en moneda nacional
y en moneda extranjera, designando a personas autorizadas para operar dichas
cuentas y girar contra las mismas; y - e) Otorgar y revocar poderes en terminos
de los parrafos a), b) y c)
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que anteceden, con o sin facultades de substitucion, y revocar poderes otorgados
por la sociedad".
2. La designacion contenida en el parrafo resolutivo 1. anterior queda
sujeta a la condicion suspensiva de que el Instituto Nacional de Migracion
otorgue la autorizacion que procede conforme a la legislacion aplicable".
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo
procedio a agradecer a la Asamblea su designacion como Director General de
DIRSAMEX, S.A. DE C.V., manifestando que realizara su mejor esfuerzo para
cumplir cabalmente con sus obligaciones en tal caracter.
PUNTO OCHO
En relacion con este octavo punto del Orden del Dia, el Presidente de la
Asamblea comento a los presentes la conveniencia de designar al senior Sergio
Rene Aparicio Gonzalez como Director de Relaciones Industriales de la sociedad,
quien para el desempeno de sus funciones habra de ser investido de poderes
idoneos.
Despues de comentar sobre la propruesta del Presidente, la Asamblea, por
unanimidad de votos, adopto la siguiente.
RESOLUCION
"Con efectos a partir del 10. de septiembre de 1994 se designa al senor
Sergio Rene Aparicio Gonzalez Director de Relaciones Industriales de DIRSAMEX,
S.A. DE C.V., quien para el desempeno de sus funciones gozara del poder general
de la sociedad para:
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a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo;
formular querellas y denuncias penales y otorgar perdon, cuando este proceda;
transigir; compremeter en arbitros; absolver y articular posiciones; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la ley, entre los que se incluye representar a la sociedad ante toda clase
de autoridades y tribunales, sean penales, civiles, adminstrativos o del
trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion; y
c) La realizacion de actos que involucren las mas amplias facultades de
administracion y direccion por lo que respecta a la planeacion, organizacion,
mando y control del personal de DIRSAMEX, S.A. DE C.V. y, en consecuencia, por
ministerio del articulo 11 de la Ley Federal del Trabajo, habra de tener el
caracter de representante legal de DIRSAMEX, S.A. DE C.V. en sus relaciones con
los trabajadores; asimismo se lo otorga, sin limitacion alguna, en su caracter
de representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las
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especiales que de acuerdo con la ley requieran poder o clausula especial, en los
terminos del parrafo primero del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Ciles de las entidades que integran la Federacion. De manera enunciativa
y no limitativa se mencionan, entre otras, facultades para representar a
DIRSAMEX, S.A. DE C.V.: i) ante toda clase de autoridades administrativas y
judiciales, tanto de caracter municipal como estatal y federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el Instituto
Mexicano del Seguro Social, el Fondo Nacional para el Consumo de los
Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las Juntas de
Conciliacion y de Conciliacion y de Conciliacion y Arbitraje, tanto locales como
federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
precedimientos, incluyendo el del amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis, setecientos
ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en la etapa
conciliatoria, en la articulacion y absolucion de posiciones y en toda la
secuela de los juicios laborales en que DIRSAMEX, S.A. DE C.V. sea parte o
tercera interesada".
Estando presente en la Asamblea el senor Sergio Rene Aparicio Gonzalez
procedio a agradecer a la Asamblea su designacion como Director de Relaciones
Industriales de - DIRSAMEX, S.A. DE C.V., manifestando que realizara su mejor
esfuerzo para cumplir
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cabalmente con sus obligaciones en tal caracter.
PUNTO NUEVE
Respecto de este punto noveno del Orden del Dia, el Presidente de la
Asamblea expuso a los presentes que se considera conveniente modificar
integramente los actuales estatutos sociales de DIRSAMEX, S.A. DE C.V., a fin de
que en ellos se incorporen las modificaciones que sufrio nuestra Ley General de
Sociedades Mercantiles, mismas que entraron en vigor el 11 de junio de 1992, las
que permiten mayor flexibilidad en la realizacion de actos corporativos de la
empresa y se adecuan a la actual estructura de su capital social. Indico el
Presidente que el proyecto de nuevos estatutos sociales de DIRSAMEX, S.A. DE
C.V. se hizo llegar oportunamente a los accionistas de la sociedad para su
analisis.
Los presentes coincidieron en la conveniencia de modificar integramente
los estatutos de la sociedad en los terminos del proyecto que recibieron con
oportuna anticipacion los accionistas que representan, por lo que la Asamblea,
por unanimidad de votos, adopto las siguientes.
RESOLUCIONES
"1. Con efectos a partir del lo. de noviembre de 1994 se modifican
integramente los estatutos sociales de DIRSAMEX, S.A. DE C.V. en los terminos
del proyecto que oportunamente y con anticipacion a la fecha de esta Asamblea
fue entregado a los accionistas de la sociedad".
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"2. Al expediente de esta acta se bajo la LETRA "D", un ejemplar de los
nuevos estatutos de DIRSAMEX, S.A. DE C.V. en vigor a partir del io. de
noviembre de 1994, ejemplar que ha sido debidamente inicialado con fines de
identificacion por el Presidente y el Secretario de esta Asamblea".
PUNTO DIEZ
En relacion con este punto decimo del Orden del Dia, el Presidente
manifesto la necesidad de designar a la persona o personas que, en
representacion de la sociedad, habran de comparecer ante Notario Publico para i)
otorgar los poderes a que se contraen las resoluciones adoptadas respecto de los
puntos VI y VII del Orden del Dia de esta Asamblea, ii) protocolizar ela acta
que de esta Asamblea se levante, iii) inscribir el o los testimonios que
contengan tal protocolizacion en el Registro Publico de Comercio del Distrito
Federal, y, iv) adoptar cuanta medida o accion se requira a efecto de que las
resoluciones adoptadas por esta Asamblea cobren pleno vigor y surtan todos sus
efectos, proponiendo se designe para tal fin a la seniorita Elisa Iglesias
Alvarez y a los senores Luis Alfonso Cervantes Muniz, Alejandro Sainz Orantes y
Alejandro Nila Rosales, quienes podran actuar conjunta o separadamente,
indistintamente.
La Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES
"1. En los temrinos de lo dispuesto por el articulo 10 de la Ley General
Sociedades Mercantiles se designan Delegados Especiales de DIRSAMEX, S.A. DE
C.V. a quenes
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fungieron como Presidente y Secretario de la Asamblea, esto es, a los senores
Alejandro Sainz Orantes y Luis Alfonso Cervantes Muniz, a efecto de que
conjuntamente comparezcan ante el Notario Publico de su eleccion a otorgar, en
representacion de DIRSAMEX, S.A. DE C.V., los poderes a que se contraen las
resoluciones adoptadas respecto de los puntos VI. y VIII. del Orden del Dia de
esta Asamblea General Ordinaria Anual y Extraordinaria de Accionistas,
teniendose el texto de tales poderes por aqui reproducido como si se insertase a
la letra".
"2. Se designan Delegados Especiales de DIRSAMEX, S.A. DE C.V. a la
senorita Elisa Iglesias Alvarez y a los senores Luis Alfonso Cervantes Muniz,
Alejandro Sainz Orantes y Alejandro Nila Rosales, quienes podran actuar conjunta
o separadamente, indistintamente, a efecto de que comparezcan ante el Notario
Publico de su eleccion a protocolizar el acta que de esta Asamblea se levante y
a efecto de que inscriban el o los primeros testimonios correspondientes en el
Registro Publico de Comercio de esta capital en el folio mercantil 145450". No
habiendo otro asunto que tratar se suspendio la Asamblea por el tiempo necesario
para la redaccion de la presente acte, la cual fue posteriormente leida,
aprobada y firmadapor todos los que en ella intervinieron. Se hace constar que
al momento de adoptarse todas y cada una de las resoluciones contenidas en esta
acta estuvo representada y participo la totalidad del capital de la sociedad. Se
agregan al expediente de esta acta: d) Bajo la LETRA "D", el texto de los
estatutos sociales de DIRSAMEX, S.A. DE C.V. en vigor a partir del lo. de
noviembre de 1994....
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Se levanto la Asamblea a las 17:00 horas del 1o. de agosto de 1994. Una firma.
Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de C.V. y de
Plumibol, S.A. de C.V. - Presidente. Una firma. Luis Alfonso Cervantes Muniz.
Secretario. Una firma. Alejandro Nilia Rosales, en representacion de Calzada
Mariano Escobedo 151- 155, S.A. de C.V., de Braun de Mexico y Compania, de C.V.
y Oral-B Laboratorios, S.A. de C.V. Una firma. Julio Pedro Cepeda Rebollo. Una
firma. Sergio Rene Aparicio Gonzalez. Una firma. Fernando Holguin Maillard.
Comisario.
V. AUTORIZACION DEL INSTITUTO NACIONAL DE MIGRACION. Los comparecientes me
exhiben el oficio numero doce mil doscientos siete, del expediente numero cinco
diagonal doscientos catorce mil cuatrocientos noventa, de fecha primero de junio
de mil novecientos noventa y cuatro, mismo que contiene la autorizacion del
Institute Nacional de Migracion de la Secretaria de Gobernacion, para que el
senor JULIO PEDRO CEPEDA REBOLLO, ocupe el cargo de Administrador Unico de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE. Fotocopia de dicho oficio, la
agrego al apendice de esta escritura, en una foja util y con la letra "A".
EXPUESTO LO ANTERIOR, LOS COMPARECIENTES FORMALIZAN LO QUE SE CONTIENE EN
LAS SIGUIENTES:
CLAUSULAS
PROTOCOLIZACION PARCIAL
PRIMERA. A solicitud de los senores Licenciados LUIS ALFONSO CERVANTES
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MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados Especiales de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en cumplimiento del acuerdo
respectivo, queda PROTOCOLIZADA en la presente en su parte transcrita el ACTA DE
ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de la expresada
Sociedad, celebrada el primero de agost de mil novecientos noventa y cuatro,
misma que he copiado en lo conducente en el antecedente cuarto de estet
instrumento.
SEGUNDA. En consecuencia, se tienen por formalizados los siguientes
acuerdos:
A). Con efectos al cuatro de julio de mil novecientos noventa y cuatro,
por aceptada la renuncia de la senora LETICIA NAVARRO OCHOA, al cargo de
Administradora Unica de la referida Sociedad.
B). Con efectos a partir del cuatro de julio de mil novecientos noventa y
cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como Administrador
Unico de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quien gozara de todas
las facultades que la Ley concede a los de su clase y muy especialmente de las
senaladas en los Estatutos Sociales.
C). Por ratificada la designacion del senor LUIS ALFONSO CERVANTES MUNIZ,
al cargo de Administrador Unico Suplente de la expresada Sociedad, quien gozara
de las facultades senaladas en la escritura relacionada en el antecedenta
segundo de la presente.
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D). Por ratificada la designacion de los senores FERNANDO HOLGUIN MAILLARD
y EDUARDO RODRIGUEZ ISLAS, a los cargos de Comisarios Proprietario y Suplente,
respectivemente, de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
E). Con efectos a partir del cuatro de julio de mil novecientos noventa y
cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como Director General
de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE. Dicha designacion, QUEDA
SUJETA A LA CONDICION SUSPENSIVA de que el Instituto Nacional de Migracion
otorgue la autorizacion respectiva.
F). Con efectas a partir del primero de septiembre de mil novecientos
noventa y cuatro, por designado al senor SERGIO RENE APARICIO GONZALEZ, como
Director de Relaciones Industriales de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE.
G). Con efectos a partir del primero de noviembre de mil novecientos
noventa y cuatro, por modificados integramente los estatutos sociales de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
H). Por designados como Delegados Especiales de "DIRSAMEX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, a los senores ALEJANDRO SAINZ ORANTES, LUIS ALFONSO
CERVANTES MUNIZ, ALEJANDRO NILA ROSALES, y a la senorita ELISA IGLESIAS ALVAREZ,
quienes tendran las facultades contenidas
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en el acta que ha quedado protocolizada parcialmente, mismas que se tienen aqui
por reproducidas como si se insertasen a la letra.
PROTOCOLIZACION
TERCERA. A solicitud de los senores Licenciados LUIS ALFONSO CERVANTES
MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados Especiales de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quedan PROTOCOLIZADOS en la
presente, los nuevos Estatutos Sociales de la expresada Sociedad, mismos que
agrego al apendice de esta escritra, en doce fojeas utilizadas unicamente por el
anverso y con la letra "B".
OTORGAMIENTO DE PODERES GENERALES
CUARTA. "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
como se has dicho por sus Delegados Especiales, en cumplimiento del acuerdo
contenido en el acta que ha quedado protocolizado parcialmente por esta
escritura, OTORGA al senor JULIO PEDRO CEPEDA REBOLLO, para el desempeno de su
cargo de Director General de la expresada Sociedad, el PODER GENERAL de la
Sociedad para:
A). PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las Entidades
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que integran la Federacion, estando por lo tanto facultado para desistirse aun
del juicio de amparo; formular querelles y denuncias penales y otorgar perdon,
cuando este proceda; transigir; compremeter en arbitros; absolver y articular
posiciones; recusar jueces; recibir pagos y ejecutar todos los demas actos
expresamente autorizados por la Ley, entre los que se incluye representar a la
Sociedad ante toda clase de Autoridades y Tribunales, sean Penales, Civiles,
Administravos o del Trabajo.
B). ADMINISTRAR BIENES, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las Entidades que integran la
Federacion.
C). LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE
y, en consecuencia, por ministerio del articulo once de la Ley Federal del
Trabajo, habra de tener el caracter de representante legal de "DIRSAMEX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones con los trabajadores;
asimismo se le otorga, sin limitacion alguna, en su caracter de representante
legal, el poder general de la Sociedad para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la Ley requieran
poder o clausula especial, en los terminos del parrafo primero del articulo dos
mil quinientos cincuienta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en
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los Codigos Civiles de las Entidades que integran la Federacion. De manera
enunciativa y no limitativa se mencionan entre otras, facultades para
representar a "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE: 1) ante toda
clase de Autoridades Administratives y Judiciales, tanto de caracter Municipal
como Estatal y Federal, ante el Instituto del Fondo Nacional para la Vivienda de
los Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional
para el Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii)
ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto Locales
como Federales, y ante las Autoridades Laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
preocedimientos, incluyendo el del amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion dos (romano), ochocientos setenta y seis, setecientos ochenta y seis,
setecientos ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en
la etapa conciliatoria, en la articulacion y absolucion de posiciones y en toda
la secuela de los juicios laborales en que "DIRSAMEX", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, sea parte o tercera interesada;
D). SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion de
la Sociedad, en terminos del articulo noveno de la Ley General de Titulos y
Operaciones de Credito, asi como abrir, operar y cerrar cuentas de la Sociedad
con Instituciones Bancarias e Instituciones Bursatiles, tanto del pais como del
extranjero,
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en moneda nacional y en extranjera, designando a personas autorizadas para
operar dichas cuentas y girar contra las mismas;
E). OTORGAR Y REVOCAR PODERES en terminos de los parrafos A), B), y C) que
anteceden, con o sin facultades de substitucion, y revocar poderes otorgados por
la Sociedad.
QUINTA. "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
como se ha dicho por sus Delegados Especiales, en cumplimiento del acuerdo
contenido en el acta que ha quedado protocolizada parcialmente en esta
escritura, OTORGA al senor SERGIO RENE APARICIO GONZALEZ, para el desempeno de
su cargo de Director de Relaciones Industriales de la expresada Sociedad, el
PODER GENERAL de la Sociedad para:
A). PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las Entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo;
formular querellas y denuncias penales y otorgar perdon, cuando este proceda;
transigir; comprometer en arbitros; absolver y articular posiciones; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la Ley, entre los que se incluye representar a la Sociedad ante toda clase
de Autoridades y Tribunales,
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sean Penales, Civiles, Administrativos o del Trabajo;
B). ADMINISTRAR BIENES, en los terminos del parrafo segunda del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las Entidades que integran la
Federacion.
C). LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS FACULTADES DE
ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE
y, en consecuencia, por ministerio del articulo once de la Ley Federal del
Trabajo, habra de tener el caracter de representante legal de "DIRSAMEX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones con los trabajadores;
asimismo se le otorga, sin limitacion alguna, en su caracter de representante
legal, el poder general de la Sociedad para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la Ley requieran
poder o clausula especial, en los terminos del parrafo primero del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las Entidades que integran la
Federacion. De manera enunciativa y no limitativa se mencionan entre otras,
facultades para representar a "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE:
i) ante toda clase de Autoridades Administrativas y Judiciales, tanto de
caracter Municipal como Estatal y Federal, ante el Instituto del Fondo Nacional
para la Vivienda de los Trabajadores, el Instituto Mexicano
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del Seguro Social, el Fondo Nacional para el Consumo de los Trabajadores y el
Sistema de Ahorro para el Retiro, ii) ante las Juntas de Conciliacion y de
Conciliacion y Arbitraje, tanto Locales como Federales, y ante las Autoridades
Laborales a que se refiere el articulo quinientos veintitres de la Ley Ferdal
del Trabajo, iii) en toda clase de procedimientos, incluyendo el del amparo, y
iv) comparaciendo y actuando, de acuerdo con lo dispuesto en las articulos once,
seiscientos noventa y dos, fraccion dos (romano), ochocientos setenta y seis,
setecientos ochenta y seis, setecientos ochenta y siete y demans aplicables de
la Ley Federal del Trabajo, en la etapa conciliatoria, en la articulacion y
absolucion de posiciones y en toda la secuela de los juicios laborales en que
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, see parte o tercera
interesada.
CLAUSULAS COMUNES
SEXTA. Los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO
SAINZ ORANTES, en su citado caracter de Delegados Especiales de "DIRSAMEX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, liberan al suscrito Notario de la
obligacion de inscribir el primer testimonio de esta escritura, en el Registro
Publico de la Propriedad y de Comercio del Distrito Federal, siendo por cuenta
de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, todos los gastos, derechos
y honorarios que dicho tramite origine.
SEPTIMA. Los gastos y honorarios que la presente origine, seran por cuenta
de
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"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifiestan los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, bajo protesta de decir verdad y advertidos previamente
de las penas en que incurren quienes declaran con falsedad ante Notario, que:
A). Los funcionarios designados de la referida Sociedad, han aceptado sus
respectivos cargos y caucionado debidamente el manejo de los mismos.
B). Las firmas que aparacen al final del acta protocolizada parcialmente,
corresponden a las personas que se les atribuyen.
C). LA PERSONIDAD que ostentan no les ha sido revocada ni en forma alguna
limitada, y acreditan la misma asi como la legal constitucion de su
representada, con los documentos relacionados en los antecedentes de la
presente.
POR SUS GENERALES, los comparecientes declaran ser mexicanos por
nacimiento; el senor LUIS ALFONSO CERVANTES MUNIZ, originario del Distrito
Federal, nacio el dieciseis de noviembre de mil novecientos cincuenta y cinco,
casado, Licenciado en Derecho, con domicilio en Campos Eliseos numero
trescientos cuarenta y cinco, tercer piso, colonia Chapultepec Polanco,
Delegacion Miguel Hidalgo, quien es de mi personal conocimiento; y el senor
ALEJANDRO SAINZ ORANTES, originario del Distrito Federal, nacio el doce de abril
de mil novecientos setenta, soltero, Licenciado en
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Derecho, con el mismo domicilio que el anterior, se identifica con su licencia
para conducier tipo "A" marcada con el numeoro "NVA" un millon ciento setenta y
tres mil trescientos setenta y seis, expedida el veinticuatro de febrero de mil
novecientos noventa y tres, por el modulo quince de la entonces Secretaria
General de Proteccion y Vialidad del Departamento del Distrito Federal.
FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el Notario;
lo relacionado e inserto concuerda con sus originales a que me remito; los
comparecientes a quienes explique ampliamente el valor y las consecuencias
legales de esta escritura, me son conocidos y tienen capacidad legal; la misma
les fue leida y conformes con ella la firman el dia de su fecha en que desde
luego AUTORIZO. - DOY FE.
LUIS ALFONSO CERVANTES MUNIZ. Firma. ALEJANDRO SAINZ ORANTES. Firma. CARLOS
ANTONIO REA FIELD. Firma. El sello de autorizar.
NOTAS COMPLEMENTARIAS
NOTA PRIMERA. Mexico, Distrito Federal a veintiocho de abril de mil
novecientos noventa y cinco. Con esta fecha agrego al apendice en dos fojas
utiles y con la letra "C", el aviso que di al Registro Nacional de Inversiones
Extranjeras, conforme al articulo treinta y cuatro de la Ley de Inversion
Extranjera. DOY FE. CARLOS ANTONIO REA FIELD. Rubrica.
INSERCION DEL ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO
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DEL CODIGO CIVIL PARA EL DISTRITO FEDERAL.
ART. 2554. En todos los poderes generales para pleitos y cobranzas,
bastara que se diga que se otorga con todas las facultades generales y las
especiales que requieran clausula especial conforme a la Ley, para que se
entiendan conferidos sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar que se
dan con ese caracter para que el apoderado tenga toda clase de facultades
admnistrativeas.
En los poderes generales, para ejercer actos de dominio bastara que se den
con ese caracter para que el apoderado tenga todas las facultades de dueno,
tanto en lo relativo a los bienes, como para hacer toda clase de gestiones, a
fin de defendarios.
Cuando se quisieren limitar, en los tres casos antes mencionados, las
facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los Notarios insertaran este articulo en los testimonios (ES CONTINUACION
DE LA FOJA NUMERO DIECISEIS, DE LA ESCRITURA NUMERO TRES MIL CUATROCIENTOS
CUARENTA Y CUATRO). de los poderes que otorguen".
ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA "DIRSAMEX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A SU SOLICITUD. VA EN DIECISIETE FOJAS
UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS. DOY FE. MEXICO, DISTRITO FEDERAL A
VEINTIOCHO DE
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ABRIL DE MIL NOVECIENTOS NOVENTA Y CINCO.
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DEL APENDICE LETRA "B"
DIRSAMEX, S.A. DE C.V.
ESTATUTOS
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO I. La denominacion de la sociedad es "DIRSAMEX" y debera ir
siempre seguida de las palabras "sociedad anonima de capital variable", o de su
abreviatura "S.A. de C.V.".
ARTICULO II. El domicilio de la sociedad es el Distrito Federal, Mexico;
sin embargo, podra establecer agencias o sucursales en cualquier otra parte de
la Republica Mexicana o del extranjero y someterse a domicilios convencionales.
ARTICULO III. La sociedad tendra por objeto:
1) La prestacion de todo tipo de servicios, particularmente servicios
administrativos, a personas fisicas y a personas morales, en Mexico y en el
extranjero, y recibir tales servicios;
2) La prestacion de todo tipo de servicos tecnicos, administrativos y de
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supervision a negociaciones comerciales e industriales en Mexico y en el
extranjero, y recibir tales servicios:
3) La prestacion a cualesquiera entidades y sociedades de todo tipo de
servicios que se requieran para el logro de sus objetos sociales, tales como
servicios administrativos, financieros, legales, de mercadeo y de tesoreria,
incluyendo la preparacion de reportes y estados financieros, presupuestos,
programas y manuales de operacion, asi como la evaluacion de resultados
operacionales, evaluacion de productividad y posibilidades de financiamiento,
incluyendo analisis de disponibilidad de capital;
4) Establecer, arrendar, subarrendar, operar y poseer en cualquier forma
permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas, almacenes,
tiendas y demas establecimientos necesarios para la realizacion del objeto
social, asi como adquirir y enajenar toda clase de negociaciones industriales y
comerciales, incluyendo acciones, participaciones e instrumentos por ellas
emitidos;
5) Solicitar, obtener, registrar, comprar, utilizar, ceder o en cualquier
otra forma disponer y adquirir marcas, nombres comerciales, derechos de autor,
patentes, invenciones y procesos;
6) Establecer sucursales, subsidiarias, agencias y oficinas de
representacion en Mexico y en el extranjero;
7) Representar y actuar como agente, en la Republica Mexicana y en el
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extranjero, de empresas industriales y comerciales, sean nacionales o
extranjeras;
8) Adquirir, poseer, arrendar, subarrendar, comprar, vender y negociar en
cualquier otra forma permitida por la ley con bienes inmuebles, incluyendo la
adquisicion, establecimiento y operacion de laboratorios de investigacion;
9) Proporcionar toda clase de servicios tecnicos, adminsitrativos de
asesoria y de supervision a empresas industriales y comerciales, tanto en Mexico
como en el extranjero, y recibir dichos servicios;
10) Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales;
11) Dar y tomar dinero en prestamo con o sin garantias de cualquier tipo,
emitir bonos, obligaciones y demas titulos de credito, con la supervision e
intervencion de las instituciones que en cada caso se requiera de acuerdo con la
ley; y
12) En general, realizar toda clase de actos y celebrar toda clase de
contratos, sean civiles o mercantiles, permitidos por la ley.
ARTICULO IV. La sociedad tendra duracion de noventa y nueve anos contados
a partir de la fecha de su constitucion.
ARTICULO V. El capital social es variable. El capital fijo sin derecho a
retiro es de N$10,000.00 M.N. (diez mil nuevos pesos 00/100, moneda nacional),
representado por 10,000 (diez mil) acciones ordinarias, nominativas, Serie "A",
con valor nominal de
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N$1.00 M.N. (un nuevo peso 00/100, moneda nacional) cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de la
parte fija del capital social.
Corresponderan a la Serie "B" aquellas acciones representativas de la
parte variable del capital social.
En todo caso, la participacion de la inversion extranjera en el capital de
la sociedad habra de sujetarse a las disposiciones aplicables de la Ley de
Inversion Extranjera y su Reglamento.
Los certificados provisionales y los titulos definitivos representativos
de las acciones deberan cumplir con los requisitos establecidos en el articulo
ciento veinticinco de la Ley General de Sociedades Mercantiles; podran amparar
una o mas acciones y estaran firmados por dos miembros del Consejo de
Administracion o por el Administrador Unico, segun sea el caso.
ARTIULO VI. Cada aumento o reduccion del capital social fijo sera
decretado por Asamblea General Extraordinaria de Accionistas. Cada aumento o
reduccion del capital social en la parte variable sera decretado por Asamblea
General Ordinaria de Accionistas.
En los terminos del articulo ciento treinta y dos de la Ley General De
Sociedades Mercantiles, en el caso de aumento de capital los accionistas tendran
derecho preferente para suscribir las acciones representativas del aumento en
proporcion al
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numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales de Accionistas en las que se
acuerde aumento de capital seran publicadas en el Diario Oficial de la
Federacion. Ademas, las mencionadas resoluciones se notificaran a los
accionistas por medio de cartas que se enviaran por correo certificado con
anterioridad a la fecha de su publicacion, a las direcciones que aparezcan
inscritas en el Libro de Registro de Acciones de la sociedad. En caso de que
existan accionistas domiciliados en el extranjero, dichas cartas se enviaran por
correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes mencionado
dentro de los quince dias de calendario siguientes a la fecha de publicacion de
la resolucion. Sin embargo, si la totalidad del capital social estuviere
representado en alguna Asamblea que decretase incremento de capital, el periodo
de quince dias de calendario se computara a partir de la fecha de la Asamblea
correspondiente y los accionistas se daran por notificados de la resolucion
desde la fecha de la Asamblea, por lo que la publicacion y notificacion de la
resolucion de incremeneto de capital no seran necesarias,
ARTICULO VII. La sociedad podra adquirir las acciones representatives de
su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extraordinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asamblea General Extraordinaria
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de Accionistas o, por delegacion especifica de esta, el Consejo de
Administracion, sujetandose al monto maximo de utilidades repartibles que habra
de ser fijado por la propia Asamblea. Los titulos de las acciones amortizadas
quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de los mismos; podran ser reelectos y recibiran las
remuneraciones que determine la Asamblea de Accionistas.
ARTICULO IX. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier acconista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerza el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
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ARTICULO X. El Consejo de Administracion o el Administrador Unico, en su
caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las facultades
generales y las especiales que requieran de clausula especial de acuerdo con la
ley, sin limitacion alguna, de conformidad con lo dispuesto por el primer
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos, estando por lo tanto
facultado para desistirse de procedimientos, aun del juicio de amparo; formular
querellas y denuncias penales y desistirse de ellas; coadyuvar con el Ministerio
Publico y otorgar perdon; transigir; someterse a arbitraje; formular y absolver
posiciones; recusar jueces; recibir pagos y ejecutar todos los demas actos
expresamente autorizados por la ley, entre los que se incluye representar a la
sociedad ante autoridades y tribunales penales, civiles, administrativos y del
trabajo; 2. Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos; 3. Ejecutar actos de
dominio de acuerdo con lo previsto en el tercer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades federativas de
los
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Estados Unidos Mexicanos; 4. Suscribir titulos de credito de conformidad con el
articulo noveno de la Ley General de Titulos y Operaciones de Credito; 5. Abrir,
operar y cerrar cuentas bancarias a nombre de la sociedad, en el pais y en el
extranjero, en moneda nacional y en moneda extranjera, y designar a las personas
que puedan girar contra las mismas; 6. Nombrar y remover al director general y
demas directores, gerentes, funcionarios y empleados de la sociedad y determinar
sus condiciones de trabajo, remuneraciones y facultades; 7. Formular reglamentos
interiores de trabajo; 8. Convocar Asambleas de Accionistas y ejecutar sus
resoluciones; 9. Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; y 10. Conferir poderes generales y
especiales en los terminos de los parrafos uno, dos, tres, cuatro y cinco
anteriores, con o sin facultades de substitucion, asi como revocar los poderes
que hubieren sido otorgados por la sociedad.
ARTICULO XI. Cuando la sociedad sea administrada por organo colegiado el
Presidente y el Secretario del Consejo de Administracion seran designados por la
Asamblea de Accionistas o por el Consejo de Administracion, y tendran las
facultades que se les otorguen al ser designados. El Secretario podra ser o no
miembro del Consejo.
ARTICULO XII. Para que las sesiones del Consejo de Administracion sean
validas se requerira, en todo caso, la asistencia de la mayoria de sus miembros
o de sus respectivos suplentes. El Consejo de Administracion adoptara sus
resoluciones por majoria de votos de los miembros presentes en cada Sesion.
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Conforme a lo previsto en el articulo 143 de la Ley General de Sociedades
Mercantiles, los miembros del Consejo de Administracion podran adoptar
validamente resoluciones sin estar reunidos en formal Sesion, siempre que tales
resoluciones se confirmen por escrito por todos los miembros del Consejo de
Administracion. En todo caso sera responsabilidad de quien desempene el cargo de
Secretario del Consejo de Administracion de cerciorarse de la autenticidad de
tales escritos, de su formalizacion y de su conservacion.
ARTICULO XIII. El Presidente no tendra voto de calidad en caso de empate.
Si el Presidente o el Secretario no asisten a la Sesion, el cargo respectivo,
para efectos de la Sesion, sera ocupado por el Consejero designado por mayoria
de votos de los miembros presentes. Las actas de Sesiones del Consejo seran
transcritas en un libro especialmente autorizado y seran firmadas por quienes
actuen como Presidente y Secretario de cada Sesion, asi como por cualquier
Consejero que asistiere y deseare hacerlo.
ARTICULO XIV. Para garantizar el desempeno de sus cargos el Administrador
Unico o, en su caso, los Consejeros y sus respectivos Suplentes, al tomar
posesion, depositaran con la sociedad la cantidad de N$100.00 M.N. (cien nuevos
pesos 00/100, moneda nacional) cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido
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aprobada por Asamblea de Accionistas. Los directores y demas funcionarios de la
sociedad otorgaran las garantias que determine la Asamblea de Accionistas o el
Consejo de Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO XV. La vigilancia de la sociedad estara encomendada a uno o dos
Comisarios, segun lo determine la Asamblea de Accionistas. Si la Asamblea lo
considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI. Los Comisarios no necesitan ser accionistas de la sociedad;
podran ser reelectos y desempenaran su cargo hasta que las personas designadas
para suplirlos tomen posesion de los mismos.
ARTICULO XVII. Los Comisarios tendran las facultades y las obligaciones
establecidas en el articulo ciento sesenta y seis de la Ley General de
Sociedades Mercantiles.
ARTICULO XVIII. Los Comisarios otorgaran las garantias senaladas en el
articulo XIV de estos estatutos para los Consejeros, y solo podran retirarlas
cuando su gestion haya sido aprobada por Asamblea de Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO XIX. Las Assambleas de Accionistas se celebraran en el domicilio
de la sociedad. Seran Extraordinarias las Asambleas convocadas para tratar
cualquiera
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de los asuntos incluidos en el articulo ciento ochenta y dos de la Ley General
de Sociedades Mercantiles. Todas las demas Assambleas seran Ordinarias.
ARTICULO XX. Las convocatorias para Asambleas de Accionistas deberan ser
expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos el treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen la
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco de la
Ley General de Sociedades Mercantiles. Si el Administrador Unico o el Presidente
o el Secretario del Consejo de Administracion, segun sea el caso, o los
Comisarios, no expidieren la convocatoria dentro de los quince dias siguientes a
la fecha de la solicitud, un Juez de lo Civil o de Distrito del domicilio de la
sociedad hara la convocatoria a peticion de cualquier accionista interesado,
debiendo exhibir sus acciones para tal efecto, de conformidad con lo previsto
por la Ley.
ARTICULO XXI. Las convocatorias para Asambleas se publicaran en el Diario
Oficial de la Federacion con por lo menos quince dias de anticipacion a la fecha
fijada para la Asamblea. Ademas, las convocatorias se notificaran por carta a
los accionistas,
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que se enviaran por correo certificado, con anterioridad a la fecha de
publicacion de la convocatoria a las direcciones que aparezcan en el Libro de
Registro de Acciones de la sociedad. Tratandose de accionistas domiciliados en
el extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran el Orden del Dia y estaran firmadas por quien las
expida.
ARTICULO XXII. Las Asambleas podran celebrarse sin previa publicacion de
convocatoria si el capital social esta representado en su totalidad y participa
al momento de la votacion.
ARTICULO XXIII. Solo los accionistas que aparezcan inscritos en el Libro
de Registro de Acciones de la sociedad como titulares de una o mas acciones
seran admitidos en Asambleas.
ARTICULO XXIV. Los accionistas podran ser representados en Asambleas por
la persona o personas que designen mediante carta poder firmada ante dos
testigos, o por cualquier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV. Las actas de Asambleas se transcribiran a un libro
especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearan
firmar.
ARTICULO XXVI. Las Asambleas seran presididas por el Administrador Unico o
por el Presidente del Consejo de Administracion, segun sea el caso. Sin
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embargo, en caso de que quien desempene alguno de los cargos mencionados
estuviere ausente, la Asamblea en cuestion sera presidida por la persona que se
designe por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO XXVII. Las Asambleas Ordinarias se celebraran cuando menos una
vez al ano dentro de los cuatro meses siguientes al cierre de cada ejercicio
social. Ademas de los asuntos especificados en el Orden del Dia, la Asamblea
Ordinaria Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluya los informes y estados financieros a que se refiere
el enunciado general del articulo ciento setenta y dos de las Ley General de
Sociedades Mercantiles, tomando en cuenta el informe del Comisario o Comisarios,
y adoptar las medidas que juzgue oportunas; designar al Administrador Unico o a
los miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios, asi como determinar las remuneraciones al Administrador Unico o a
los miembros del Consejo de Administracion y a los Comisarios.
ARTICULO XXVIII. Para que sean validas las Asambleas Ordinarias de
Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
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ARTICULO XXIX. Para que sean validas las Asambleas Extraordinarias de
Accionistas celebradas en virtud de primera convocatoria, deberan reunir, por lo
menos, la presencia del sesenta y cinco por ciento de las acciones
representativas del capital social. En caso de segunda o ulterior convocatoria,
la Asamblea se considerara legalmente instalada si estuviere presente, cuando
menos, el cincuenta por ciento de las acciones representativas del capital
social.
ARTICULO XXX. Tratandose de Asambleas Ordinarias, las resoluciones en
ellas adoptadas seran validas cuando se emita voto favorable por la mayoria de
las acciones presentes, siempre y cuando hubiere existido quorum de presencia en
los terminos del articulo XXVIII de los estatutos sociales.
En el caso de Asambleas Extraordinarias, sus resoluciones seran validas
cuando sean adoptadas por el voto favorable de las acciones que representen,
cuando menos, el cincuenta por ciento de las acciones que integren el capital
social.
ARTICULO XXXI. Conforme a lo dispuesto en el articulo 178 de la Ley
General de Sociedades Mercantiles, podran validamente los accionistas adoptar
resoluciones sin la celebracion de Asamblea, siempre y cuando tales resoluciones
consten por escrito firmado por todos los accionistas titulares de la totalidad
de las acciones con derecho a voto representativas del capital de la sociedad.
En todo caso sera responsabilidad de quien desempene el cargo de Secretario del
Consejo de Administracion cerciorarse de la autenticidad de tales escritos, de
su formalizacion y de
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su conservacion.
INFORMACION FINANCIERA
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de cada
ejercicio social, el Administrador Unico o el Consejo de Administracion, en su
caso, formulara los siguientes estados financieros, los que deberan contener
toda la informacion que sea necesaria para reflejar el estado que guarda la
situacion financiera y operativa de la sociedad, en terminos del enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los resultados
de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera ocurridos
durante el ejercicio social;
d) Estado que muestre los cambios en los cambios en las partidas que
integran el capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados financieros
anteriores.
ARTICULO XXXIII. Los estados financieros, junto con los documentos
justificativos, deberan ser entregados al Comisario o Comisarios con un mes de
anticipacion, cuando menos, a la fecha fijada para la Asamblea General Anual
Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
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ARTICULO XXXIV. Dentro de los quince dias siguientes a la fecha en que les
hayan sido entregados los estados financieros, los Comisarios deberan entregar
al Administrador Unico o al Consejo de Administracion, segun sea el caso, un
informe para los accionistas respecto de la veracidad, suficiencia y
rezonabilidad de la informacion que les haya sido presentada por el Consejo de
Administracion o por el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del Consejo
de Administracion, segun sea el caso, a disposicion de los accionistas, para su
revision, por lo menos durante los quince dias anteriores a la fecha senalada
para la Asamblea General Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse publicar y
depositar en la forma y terminos previstos en el articulo ciento setenta y siete
de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV. Las utilidades netas de cada ejercicio social seran
distribuidas de la siguiente manera:
1) En cinco por ciento para constituir y, si fuese necesario, para
reconstituir, el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
2) El saldo de las utilidades netas se aplicara segun lo determine la
Asamblea General Ordinaria de Accionistas.
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ARTICULO XXXVI. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva y, si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada al
pago del valor nominal de sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO XXXVII. La sociedad se disolvera en cualquiera de los supuestos
establecidos en la ley. Una vez disuelta la sociedad se pondra en liquidacion.
La liquidacion se encomendara a uno o mas liquidadores designados por Asamblea
Extraordinaria de Accionistas. Si la Asamblea no hiciere la designacion
correspondiente la hara un Juez de lo Civil o de Distrito del domicilio de la
sociedad a solicitud de cualqueir accionista.
ARTICULO XXXVIII. En ausencia de instrucciones expresas en contrario dadas
a los liquidadores por la Asamblea, la liquidacion se llevara a cabo de acuerdo
con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos perjudicial
para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance final de liquidacion;
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5) Distribucion del remanente, si lo hubiere, entre los accionistas, en
proporcion a su participacion en el capital social.
DISPOSICIONES GENERALES
ARTICULO XXXIX. Los socios fundadores, como tales, no se reservan
participacion alguna.
ARTICULO XL. Todo extranjero que en el acto de la constitucion o en
cualquier tiempo ulterior adquiera un interes o participacion social en la
sociedad se considerara por ese solo hecho como mexicano respecto de uno y otra,
y se entendera que conviene en no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
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LIBRO NUMERO CIENTO CUARENTA Y DOS
ESCRITURA NUMERO (4,471) CUATRO MIL CUATROCIENTOS SETENTA Y UNO.
EN MEXICO, DISTRITO FEDERAL, a los tres dias del mes de octubre de mil
novecientos noventa y seis, yo, el Licenciado CARLOS ANTONIO REA FIELD, titular
de la Notaria ciento ochenta y siete del Distrito Federal, hago constar que ante
mi comparecen: el senor Licenciado LUIS ALFONSO CERVANTES MUNIZ y la senorita
Licenciada ELISA IGLESIAS ALVAREZ, en su caracter de Delegados Especiales de
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y exponen que formalizan la
PROTOCOLIZACION PARCIAL DEL ACTA DE LA ASAMBLEA GENERAL ORDINARIA ANUAL Y
EXTRAORDINARIA, celebrada por los accionistas de la expresada Sociedad, el
treinta y uno de mayo de mil novecientos noventa y seis, que se contiene en los
antecedentes y clausulas siguientes:
ANTECEDENTES
II.ESCRITURA CONSTITUTIVA. Por escritura numero veintinueve mil
seiscientos nueve, de fecha dos de enero de mil novecientos noventa y uno,
otorgada ante el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno
del Distrito Federal, inscrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta ciudad, el veinticinco de junio de mil
novecientos noventa y uno, en el folio mercantil numero ciento cuarenta y cinco
mil cuatrocientos cincuenta, instrumento por el
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que previo permiso consedido por la Secretaria de Relaciones Exteriores marcado
con el numero cero nueve millones sesenta y tres mil setecientos setenta y
siete, en el expediente numero nueve mil nueve millones sesenta y seis mil
setecientos treinta y siete, se constituyo "DIRSAMEX", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, con domicilio en el Distrito Federal, una duracion de NOVENTA
Y NUEVE ANOS, capital social de DIEZ MILLONES DE PESOS, Moneda Nacional,
equivalentes actualmente a DIEZ MIL PESOS, Moneda Nacional, con clausula de
admision de extranjeros y el objeto social que consta en el instrumento que aqui
se relaciona.
III. PROTOCOLIZACION DE LOS NUEVOS ESTATUTOS SOCIALES - Por escritura
numero tres mil cuatrocientos cuarenta y cuatro, de fecha veintioch de abril de
mil novecientos noventa y cinco, otorgada ante el suscrito Notario, inscrito su
primer testimonio en el Registro Publico de la Propiedad y de Comercio de esta
ciudad, el veintidos de septiembre de mil novecientos noventa y cinco, en el
folio mercantil numero ciento cuarenta y cinco mil cuatrocientos cincuenta, se
hizo constar la Protocolizacion Parcial de un acta de Asamblea General Ordinaria
Anual y Extraordinaria, celebrada por los accionistas de "DIRSAMEX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, el primero de agosto de mil novecientos noventa y
cuatro, por la que se formalizaron entre otros acuerdos el de modificar
integramente los estatutos sociales de la Sociedad, protocolizandose en el mismo
instrumento los nuevos estatutos sociales. De la relacionada escritura, copio en
lo conducente lo siguiente:
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". . . . . . ANTECEDENTES . . . . . . IV. - ACTA QUE SE PROTOCOLIZA
PARCIALMENTE. - Los comparecientes me exhiben el libro de actas de Asambleas de
Accionistas de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, libro en el que
de fojas treinta y cinco a cincuenta y cuatro, inclusive, aparece asentada un
acta de la Asamblea General Ordinaria Anual y Extraordinaria de la expresada
Sociedad, celebrada con fech primero de agosto de mil novecientos noventa y
cuatro, que en lo conducente dice:-"En el Distrito Federal, Mexico, a las 16:00
horas del lo de agosto de 1994, se reunieron en el domicilio social de DIRSAMEX,
S.A. DE C.V., los senores . . . para celebrar ASAMBLEA GENERAL ORDINARIA ANUAL Y
EXTRAORDINARIA DE ACCIONISTAS de DIRSAMEX, S.A. DE C.V., a la que fueron previa
y oportunamente convocados. Estuvieron tambien presentes los senores . . . . . .
Julio Pedro Cepeda Rebollo . . . . . . quienes fueron invitados al evento - Por
designacion unanime de los presentes fungio como Presidente de la Asamblea el
senor Alejandro Sainz Orantes. Asimismo se designo como Secretario al senor Luis
Alfonso Cervantes Muniz. - El Presidente designo escrutador al senor Alejandro
Nila Rosales quien, despues de aceptar su cargo, reviso los instrumentos
conteniendo los mandatos de los representantes de los accionistas y el Libro de
Registro de Acciones de la sociedad y certifico, en union del Comisario, que se
encontraba representada en la Asamblea la totalidad de las acciones de la
sociedad actualmente en circulacion, distribuidas en la siguiente forma: . . . .
. . ACCIONES SERIE "A" "B". - VOTOS. - . . . . . .
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TOTAL: 9,997. - 3.- 10,000. - En virtud de encontrarse debidamente representada
en la Asamblea la totalidad de las acciones emitidas por la sociedad actualmente
en circulacion, el Presidente declaro la misma legalmente instalada, no obstante
no haberse publicado la convocatoria respectiva, con fundamento en el articulo
188 de la Ley General de Sociedades Mercantiles. - La Asamblea, por unanimidad
de votos, aprobo la declaratoria anterior y procedio a desahogar los asuntos
contenidos en el siguiente. - ORDEN DEL DIA . . . . IX. - Modificacion total a
los estatutos que rigen a la sociedad para adecuarlos a las reformas a la Ley
General de Sociedades Mercantiles en vigor a partir del 11 de junio de 1992. X.
Designacion de delegados para formalizar las resoluciones adoptadas por la
Asamblea . . . . . RESOLUCIONES . . . . . . PUNTO NUEVE . . . . . Los presentes
coincidieron en la conveniencia de modificar integramente los estatutos de la
sociedad en los terminos del proyecto que recibieron con oportuna anticipacion
los accionistas que representan, por lo que la Asamblea, por unanimidad de
votos, adopto las siguientes. - RESOLUCIONES. - "1. Con efectos a partir de 10
de noviembre de 1994 se modifican integramente los estatudos sociales de
DIRSAMEX, S.A. DE C.V. en los terminos del proyecto que oportunamente y con
anticipacion a la fecha de esta Asamblea fue entregado a los accionistas de la
sociedad". - "2. Al expediente de esta acta se agrega bajo la LETRA "D", un
ejemplar de los nuevos estatutos de DIRSAMEX, S.A. DE C.V. en vigor a partir del
10. de noviembre de 1994, ejemplar que ha sido debidamente inicialado con fines
de indentificacion por el
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Presidente y el Secretario de esta Asamblea." PUNTO DIEZ . . . . . . La
Asamblea, por unanimidad de votos, adopto las siguentes. RESOLUCIONES . . . . .
2. Se designan Delegados Especiales de DIRSAMEX, S.A. DE C.V. a la senorita
Elisa Iglesias Alvarez y a los senores Luis Alfonso Cervantes Muniz, Alejandro
Sainz Orantes y Alejandro Nila Rosales, quienes podran actuar conjunta o
separadamente, indistintamente, a efecto de que comparezcan ante el Notario
Publico de su eleccion a protocolizar el acta que de esta Asamblea se levante y
a efecto de que inscriban el o los primeros testimonios correspondientes en el
Registro Publico de Comercio de esta capital en el folio mercantil 145450". - No
habiendo otro asunto que tratar se suspendio la Asamblea por el tiempo necesario
para la redaccion de la presente acta, la cual fue posteriormente leida,
aprobada y firmada por todos los que - en ella intervinieron. Se hace constar
que al momento de adoptarse todas y cada una de las resoluciones contenidas en
esta acta estuvo representada y participo la totalidad del capital de la
sociedad. Se agregan al expediente de esta acta: . . . . d) Bajo la LETRA "D",
el texto de los estatutos sociales de DIRSAMEX, S.A. DE C.V. en vigor a partir
del 10. de noviembre de 1994 . . . . Se levanto la Asamblea a las 17:00 horas
del 1o. de agosto de 1994. Una firma. Alejandro Sainz Orantes . . . Presidente.
Una firma. Luis Alfonso Cervantes Muniz. Secretario. Una firma. Alejandro Nila
Rosales . . . Una firma. Fernando Holguin Maillard. Comisario . . . . EXPUESTO
LO ANTERIOR, LOS COMPARECIENTES FORMALIZAN LO QUE SE CONTIENE EN LAS SIGUIENTES:
- - CLAUSULAS
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PROTOCOLIZACION PARCIAL - PRIMERA. A solicitud de los senores Licenciados LUIS
ALFONSO CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, en su caracter de Delegados
Especiales de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en
cumplimiento del acuerdo respectivo, queda PROTOCOLIZADA en la presente en su
parte transcrita el ACTA DE LA ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA
DE ACCIONISTAS de la expresada Sociedad, celebrada el primero de agosto de mil
novecientos noventa y cuatro, misma que he copiado en lo conducente en el
antecedente cuarto de este instrumento. SEGUNDA. En consecuencia, se tienen por
formalizados los siguientes acuerdos: . . . . G). Con efectos a partir del
primero de noviembre de mil novecientos noventa y cuatro, por modificados
integramente los Estatutos Sociales de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE. H). Por designados como Delegados Especiales de "DIRSAMEX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, a los senores ALEJANDRO SAINZ ORANTES, LUIS ALFONSO
CERVANTES MUNIZ, ALEJANDRO NILA ROSALES, y a la senorita ELISA IGLESIAS ALVAREZ,
quienes tendran las facultades contenidas en el acta que ha quedado
protocolizada parcialmente, mismas que se tienen aqui por reproducidas como si
se insertasen a la letra. PROTOCOLIZACION. TERCERA. A solicitud de los senores
Lidenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, en su
caracter de Delegados Especiales de "DIRSAMEX", SOCIEDAD
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ANONIMA DE CAPITAL VARIABLE, quedan PROTOCOLIZADOS en la presente, los nuevos
Estatutos Sociales de la expresada Socieda, mismos que agrego al apendice de
esta escritura, en doce fojas utilizadas unicamente por el anverso y con la
letra "B" . . . . . . DEL APENDICE. LETRA "B". DIRSAMEX, S.A. DE C.V. -
ESTATUTOS. NOMBRE, DOMICILIO, OBJETO Y DURACION. - ARTICULO I. La denominacion
de la sociedad es "DIRSAMEX" y debera ir siempre seguida de las palabras
"sociedad anonima de capital variable", o de su abreviatrura "S.A. DE C.V.".
ARTICULO II. El domicilio de la sociedad es el Distrito Federal, Mexico; sin
embargo, podra establecer agencias o sucursales en cualquier otra parte de la
Republica Mexicana o del extranjero y someterse a domicilios convencionales.
ARTICULO III. La sociedad tendra por objeto: 1) La prestacion de todo tipo de
servicios, particularmente servicios administrativos, a personas fisicas y a
personas morales, en Mexico y en el extranjero, y en el extranjero, y recibir
tales servicios; 2) La prestacion de todo tipo de servicios tecnicos,
administrativos y de supervision a negociaciones comerciales e industriales en
Mexico y en el extranjero y recibir tales servicios; 3) La prestacion a
cualesquiera entidades y sociedades de todo tipo de servicios que se requieran
para el logro de sus objetos sociales, tales como servicios administrativos,
financieros, legales, de mercadeo y de tesoreria, incluyendo la preparacion de
reportes y estados financieros, presupuestos, programas y manuales de operacion,
asi como la evaluacion de resultados operacionales, evaluacion de productividad
y posibilidades de financiamiento, incluyendo analisis de
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disponibilidad de capital; - 4) Establecer, arrendar, subarrendar, operar y
poseer en cualquier forma permitida por la ley, oficinas, fabricas, talleres,
bodegas, plantas, almacenes, tiendas y demas establecimientos necesarios para la
realizacion del objeto social, asi como adquirir y enajenar toda clase de
negociaciones industriales y comerciales, incluyendo acciones, participaciones e
instrumentos por ellas emitidos; 5) Solicitar, obtener, registrar, comprar,
utilizar, ceder o en cualquier otra forma disponer y adquirir marcas, nombres
comerciales, derechos de autor, patentes, invenciones y procesos; 6) Establecer
sucursales, subsidiarias, agencias y oficinas de representacion en Mexico y en
el extranjero; 7) Representar y actuar como agente, en el Republica Mexicana y
en el extranjero, de empresas industriales y comerciales, sean nacionales o
extranjeras; 8) Adquirir, poseer, arrendar, subarrendar, comprar, vender y
negociar en cualquier otra forma permitida por la ley con bienes inmuebles,
incluyendo la adquisicion, establecimiento y operacion de laboratorios de
investigation; - 9) Proporcionar toda classe de servicios tecnicos,
administrativos de assesoria y de supervision a empresas industriales y
comerciales, tanto en Mexico como en el extranjero, y recibir dichos servicios;
10) Proporcionar y recibir servicios de maguila y de fabricacion o procesamiento
de materiales a y de toda clase de entidades y negocios industriales y
comerciales; 11) Dar y tomar dinero en prestamo con o sin garantias de cualquier
tipo, emitir bonos, obligaciones y demas titulos de credito, con la supervision
e intervencion de las instituciones que en cada caso se requiera de acuerdo con
la ley; y-
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12) En general, realizar toda clase de actos y celebrar toda clase de contratos,
sean civiles o mercantiles, permitidos por la ley. ARTICULO IV. La sociedad
tendra duracion de noventa y nueve anos contados a partir de la fecha de su
constitucion. ARTICULO V. El capital social es variable. El capital fijo sin
derecho a retiro es de N$10,000.00 M.N. (diez mil nuevos pesos 00/100, moneda
nacional), representado por 10,000 (diez mil) acciones ordinarias, nominativas,
Serie "A", con valor nominal de N$1.00 M.N. (un nuevo peso 00/100, moneda
nacional) cada una. Corresponderan a la Serie "A" aquellas acciones
representativas de la parte fija del capital social. Corresponderan a la Serie
"B" aquellas acciones representativas de la parte variable del capital social.
En todo caso, la participacion de la inversion extranjera en el capital de la
sociedad habra de sujetarse a las disposiciones aplicables de la Ley de
Inversion Extranjera y su Reglamento . . . . ASAMBLEAS DE ACCIONISTAS. ARTICULO
XIX. Las Asambleas de Accionistas se celebraran en el domicilio de la sodiedad.
Seran Extraordinarias las Asambleas convocadas para tratar cualquiera de los
asuntos incluidos en el articulo ciento ochenta y dos de la Ley General de
Sociedades Mercantiles. Todas las demas Asambleas seran Ordinarias. ARTICULO XX.
Las convocatorias para Asambleas de Accionistas deberan ser expedidas por el
Administrador Unico o por el Presidente o el Secretario del Consejo de
Administracion, segun sea el caso, o, en la medida en que lo permita la ley, por
el Comisario o Comisarios. Sin embargo, los accionistas que representen cuando
menos el treinta y tres por ciento del capital social podran solicitar por
escrito, en cualquier
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tiempo, que el Administrador Unico o el Consejo de Administracion, segun sea el
caso, o los Comisarios, convoquen a Asamblea de Accionistas para tratar los
asuntos especificados en su solicitud. Cualquier accionista titular de una o mas
acciones tendra el mismo derecho en cualquiera de los casos senalados en el
articulo ciento ochenta y cinco de la Ley General de Sociedades Mercntiles . . .
. . . ARTICULO XXII. Las Asambleas podran celebrarse sin previa publicacion de
convocatoria si el capital social esta representado en su totalidad y participa
al momento de la votacion. ARTICULO XXIII. Solo los accionistas que aparezcan
inscritos en el Libro de Registro de Acciones de la sociedad como titulares de
una o mas acciones seran admitidos en Asambleas. ARTICULO XXIV. Los accionistas
podran ser representados en Asambleas por la persona o personas que designen
mediante carta poder firmada ante dos testigos, o por cualquier otra forma de
mandato conferido de acuerdo con la ley. ARTICULO XXV. Las actas de Asambleas se
transcribiran a un libro especialmente autorizado y deberan ser firmadas por las
personas que hayan fungido como Presidente y Secretario de la Asamblea, asi como
por los Comisarios presentes y por los accionistas o representantes de
accionistas que desearen firmar. ARTICULO XXVI. Las Asambleas seran presididas
por el Administrador Unico o por el Presidente del Consejo de Administracion,
segun sea el caso . . . . ARTICULO XXVII. Las Asambleas Ordinarias se celebraran
cuando menos una vez al ano dentro de los cuatro meses siguientes al cierre de
cada ejercicio social. Ademas de los asuntos especificados en el Orden del Dia,
la Asamblea Ordinaria
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Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluya los informes y estados financieros a que se refiere
el enunciado general del articulo ciento setenta y dos de la Ley General de
Sociedades Mercantiles, tomando en cuenta el informe del Comisario o Comisarios,
y adoptar las medidas que juzgue oportunas, designar al Administrador Unico o a
lost miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios, asi como determinar las remuneraciones al Administrador Unico o a
los miembros del Consejo de Administracion y a los Comisarios. ARTICULO XXVIII.
Para que sean validas las Asambleas Ordinarias de Accionistas celebradas en
virtud de primera o ulterior convocatoria deberan reunir la presencia de, por lo
menos, el cincuenta por ciento de las acciones representativas del capital
social. ARTICULO XXIX. Para que sean validas las Asambleas Extraordinarias de
Accionistas celebradas en virtud de primera convocatoria, deberan reunir, por lo
menos, la presencia del sesenta y cinco por ciento de las acciones
representativas del capital social . . . . ARTICULO XXX. Tratandose de Asambleas
Ordinarias, las resoluciones en ellas adoptadas seran validas cuando se emite
voto favorable por la mayoria de las acciones presentes, siempre y cuando
hubiere existido quorum de presencia en los terminos del articulo XXVIII de los
estatutos sociales. En el caso de Asambleas Extraordinarias, sus resoluciones
seran validas cuando sean adoptadas por el voto favorable de las acciones que
representen, cuando menos, el cincuenta por ciento de las acciones que integren
el capital social . . . . DISPOSICIONES
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GENERALES . . . . ARTICULO XL. Todo extranjero que en el acto de la constitucion
o en cualquier tiempo ulterior adquiera un interes o participacion social en la
sociedad se considerara por ese solo hecho como mexicano respecto de uno y otra,
y se entendera que conviene en no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de las Nacion Mexicana . . . ."
III. ACTA QUE SE PROTOCOLIZA. Los comparecientes me exhiben el libro de
actas de Asambleas de Accionistas de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, en el que de fojas cinquenta y cinco a ochenta y dos, inclusive,
aparecen un acta de Asamblea General Ordinaria Anual y Extraordinaria de
Accionistas, de fecha treinta y uno de mayo de mil novecientos noventa y seis,
que en lo conducente dice:
"En el Distrito Federal, Mexico, a las 11:00 del 31 de mayo de 1996, se
reunieron en el domicilio social de DIRSAMEX, S.A. DE C.V. las senoritas Elisa
Iglesias Alvarez, en representacion de Grupo Jafra, S.A. DE C.V. y de Plumibol,
S.A. de C.V. y Araceli Lugo Vega, en representacion de Gillette Manufactura,
S.A. de C.V. y de Braun de Mexico y Cia., de C.V., y el senor Ramiro Rangel
Sanchez, en representacion de Oral-B Laboratorios, S.A. de C.V., con objeto de
celebrar la ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de
DIRSAMEX, S.A. DE C.V., a la que fueron previa y oportunamente convodados.
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Estuvieron presentes los senores Luis Alfonso Cervantes Muniz, Administrador
Unico Suplente de la sociedad, y Fernando Holguin Maillard, Comisario de la
misma. Asistieron tambien a la Asamblea, en calidad de invitados, los senores
Alfredo Munda Tabusso, Michael Anthony DiGregorio DiMaio, Sergio Rene Aparicio
Gonzalez, Alberto Mena Adame, Rodolfo Lopez Cerdan, Samuel Parra Huerto y
Alfonso Galvan Jimenez de la Cuesta y la senorita Maria Dolores Sanchez Cano
Gascon y senora Martha Cecilia Echeverri. Presidio la Asamblea el Administrador
Unico Suplente de la sociedad, senor Luis Alfonso Cervantes Muniz, con
fundamento en el articulo vigesimo sexto de los estatutos sociales de la
sociedad. Por designacion unanime de los presentes fungio como Secretario de la
Asamblea la senorita Elisa Iglesias Alvarez. El Presidente designo escrutadores
a la senorita Araceli Lugo Vega y al senor Ramiro Rangel Sanchez quienes,
despues de aceptar sys cargos y de revisar los instrumentos conteniendo los
mandatos de los representantes de los accionistas y el Libro de Registro de
Acciones que la sociedad lleva en terminos de lo dispuesto por el articulo 128
de la Ley General de Sociedades Mercantiles, certificaron, en union del
Comisario, que se encontraba representada en la Asamblea la totalidad de las
acciones de la sociedad actualmente en circulacion, distribuidas en la
siguientes forma:
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ACCIONISTAS ACCIONES SERIE VOTOS
"A" "B"
Grupo Jafra, S.A. de C.V.,
representada - por la senorita
Elisa Iglesias Alvarez 9,996 __________ 9,996
Plumibol, S.A. de C.V.,
representada - por la senorita
Elisa Iglesias Alvarez 1 __________ 1
Gillette Manufactura, S.A. de
C.V., representada - por la
senorita Araceli Lugo Vega. 1 __________ 1
Braun de Mexico y Cia, de
C.V., representada por la
senorita Araceli Lugo Vega. 1 __________ 1
Oral-B Laboratorios, S.A. de
C.V., representada por el
senor Ramiro Rangel
Sanchez. 1 __________ 1
TOTAL: 10,000 __________ 10,000
En virtud de encontrarse representada en la Asamblea la totalidad de las
acciones emitidas por la sociedad actualmente en circulacion, el Presidente
declaro la misma legalmente - instalada, no obstante no haberse publicado la
convocatoria respectiva, con fundamento en los articulos 188 de la Ley General
de Sociedades Mercantiles y vigesimo segundo de los estatutos sociales de la
empresa. La Asamblea, por unanimidad de votos, aprobo la declaratoria anterior y
procedio a desahogar los asuntos contenidos en el siguiente. ORDEN DEL DIA . . .
. XII. Modificacion del articulo III. de los estatutos sociales de la sociedad.
XIII. Designacion de Delegados
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para formalizar las resoluciones adoptadas por la Asamblea . . . . PUNTO DOCE.
En relacion con este decimo segundo punto del Orden del Dia, el Presidente
manifesto a la Asamblea la conveniencia de modificar el articulo III. de los
estatutos sociales de la empresa en los terminos del proyecto de texto de dicho
articulo que circulo previamente entre los presentes, a efecto de ampliar el
objeto social de la sociedad, al cual dio lectura. Despues de comentar el texto
propuesto y las razones que hacen conveniente la modificacion estatutaria
planteada, los representantes de los accionistas presentes, por unanimidad de
votos, adoptaron la siguiente. - RESOLUCION. "Con efectos a partir de la fecha
de esta Asamblea se amplia el objeto social y se modifica el articulo III. de
los estatutos sociales de DIRSAMEX, S.A. DE C.V., para quedar redactado en los
siguientes terminos: "ARTICULO III. La sociedad tendra por objeto: 1.
Proporcionar toda clase de servicios tecnicos, administrativos, de asesoria y de
supervision a empresas industriales, comerciales y de servicios, tanto en
Mexico, como en el extranjero, y reciber dichos servicios. 2. La presentacion de
todo tipo de servicios, en especial servicios de manufactura o fabricacion de
cosmeticos, articulos de belleza para el cuidado y la higiene personal,
articulos de tocador ornamentos y articulos de joyeria a todo tipo de personas
fisicas o morales, comerciantes o no. 3. Adquirir, vender, establecer, arrendar,
subarrendar, usar, operar y poseer en cualquier forma permitida por la Ley,
fabricas, talleres, plantas, almacenes, oficinas, tiendas y demas
establecimientos necesarios para la realizacion del objeto social, asi como
adquirir toda clase de negociaciones industriales,
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comerciales y de servicios, incluyendo acciones, participaciones e instrumentos
por ellas emitodos. 4. Importar, exportar, comprar, vender, distribuir,
industrializar y, en general, negociar con toda clase de materias primas,
productos terminados o semi terminados, mercaderias en general y efectos de
comercio. 5. Importar, exportar, comprar, vender y negociar en cualquier otra
forma con toda clase de maquinaria, herramientas, equipo y partes y refacciones
de los mismos. 6. Solicitar, obtener, registrar, comprar, utilizar, ceder o en
cualquier otra forma disponer o adquirir deprechos de propiedad industrial como
invenciones modelos de utilidad, disenos industriales, patentes, marcas,
denominaciones de origen, secretos industriales, avisos y nombres comerciales
asi como derechos de propiedad intelectual como los derechos de autor. 7.
Establecer sucursales subsidiarias, agencias y oficinas de representacion en
Mexico y en el Extranjero. 8. Representar o actuar como contratista,
subcontratista, comisionista, agente o representante, en la Republica Mexicana y
en el Extranjero de empresas industriales, comerciales, y de servicios, sean
nacionales o extranjeras, y designar contratistas, subcontratistas,
comisionistas, agentes o representantes. 9. Adquirir, poseer, arrendar,
subarrendar, comprar, vender y negociar en cualquier otra forma permitida por la
Ley con bienes inmuebles, incluyendo la adquisicion establecimiento y operacion
de laboratorios de investigacion. 10. Proporcionar y recibir servicios de
maquila y de fabricacion o procesamiento de materiales a y de toda clase de
entidades y negocios industriales, comerciales y de servicios. 11. Dar y tomar
dinero en prestamo con o sin
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garantias de cualquier tipo, emitir, suscribir, aceptar, garantizar y negociar
con bonos, obligaciones y demas titulos de credito, con la intervencion de las
instituciones que en cada caso se requiera de acuerdo co la Ley. 12. Garantizar
obligaciones de terceros. 13. En general, realizar toda clase de actos y
celebrar toda clase de contratos, sean civiles o mercantiles, permitidos por la
Ley.". - PUNTO TRECE. En desahogo del decimo tercer punto del Orden del Dia el
Presidente manifesto la necesidad de designar a la persona o personas que, en
reprentacion de la sociedad, abran de comparecer conjunta o separadamente,
indistintamente, ante Notario o Corredor Publico para i) otorgar los poderes a
que se contraen las resoluciones adoptadas respecto de los puntos IX. y X. del
Orden del Dia de esta Asamblea, ii) protocolizar total o parcialmente el acta
que de esta Asamblea se levante, iii) inscribir el o los testimonios que
contengan tales poderes y protocolizaciones en el Registro Publico de la
Propiedad y de Comercio del Distrito Federal, y, iv) adoptar cuanta medida o
accion se requiera a efecto de que las resoluciones adoptadas por esta Asamblea
cobfren pleno vigor y surtan todos sus efectos, proponiendo se designe para tal
fin a las senoritas Elisa Iglesias Alvarex y Araceli Lugo Vega, y a los senores
Alberto Mena Adame, Luis Alfonso Cervantes Muniz y Ramiro Rangel Sanchez. -
Despues de comentar lo expuesto por el Presidente de la Asamblea, por unanimidad
de votos de los representantes de los accionistas presentes adopto las
siguientes. - RESOLUCIONES. - "1. En los terminos de lo dispuesto por el
articulo 10 de la Ley General de Sociedades Mercantiles se designan Delegado
Especiales de
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DIRSAMEX, S.A. DE C.V. a quienes fungieron como Presidente y Secretario de la
Asamblea, esto es, al senor Luis Alfonso Cervantes Muniz y a la senorita Elisa
Iglesias Alvarez, a efecto de que conjunctamente comparezcan ante el Notario
Publico de su eleccion a otorgar, en representacion de DIRSAMEX, S.A. DE C.V.,
los poderes a que se contraen la resoluciones adoptadas respecto de los puntos
IX. y X. del Orden del Dia de esta Asamblea General Ordinaria Anual y
Extraordinaria de Accionistas, tendiendose el texto de tales poderes aqui por
reproducido como si se insertase a letra." "2. Se designan delegados de la
sociedad a las senoritas Elisa Iglesias Alvares y Araceli Lugo Vega, y a los
senores Alberto Mena Adame, Luis Alfonso Cervantes Muniz y Ramiro Rangel
Sanchez, para que conjunta o separadamente, indistintamente cualquiera de ellos
comparezca ante el Notario Publico de su eleccion, a protocolizar total o
parcialmente el acta que de esta Asamblea se levante, asi como para que otorgue
todos los documentos que fueren necesarios o convenientes para dar cumplimiento
y formalizar las resoluciones adoptadas por esta Asamblea, y para que realice
cuantos actos se requieran para que tales resoluciones cobren plena vigencia y
surtan todos sus efectos." - A continuacion la senorita Elisa Iglesias Alvarez
en su caracter de Secretario de la Asamblea hizo constar que durante el
desarrollo de la misma y al momento de adoptarse todas y cada una de las
resoluciones contenidas en esta Acta, estuvieron debidamente representadas y
participacion la totalidad de las acciones en que se divide el capital social de
DIRSAMEX, S.A. DE C.V., actualmente en circulacion. Se anexan al expediente del
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acta de esta Asamblea General Ordinaria Anual y Extraordinaria de Accionistas,
bajo la LETRA "C", las cartas poder con las que los representantes de los
accionistas acreditaron su representacion. A continuacion se suspendio la
Asamblea por el tiempo necesario para la redaccion de esta acta, la cual fue
posteriormente leida y aprobada por todos los presentes, y firmada por el
Presidente y la Secretario de la Asamblea y el Comisario de la sociedad. Se
levanto la Asamblea a las 12:00 del 31 de mayo de 1996. Luis Alfonso Cervantes
Muniz. Presidente. firma. Elisa Iglesias Alvarez, en representacion de Grupo
Jafra, S.A. de C.V. y de Plumibol, S.A. de C.V. - Secretario. -- firma. Araceli
Lugo Vega, en representacion de Gillette Manufactura, S.A. de C.V. y de Braun de
Mexico y Cia. de C.V. firma. Ramiro Rangel Sanchez, en representacion de Oral-B
Laboratories, S.A. de C.V. firma. Fernando Holquin Maillard. Comisario firma. .
. "EXPUESTO LO ANTERIOR, LOS COMPARECIENTES FORMALIZAN LO QUE SE CONTIENE EN LAS
SIGUIENTES:
C L A U S U L A S
PROTOCOLIZACION
PRIMERA. A solucitud del senor Licenciado LUIS ALFONSO CERVANTES MUNIZ y
de la senorita Licenciada ELISA IGLESIAS ALVAREZ, en su caracter de Delegados
Especiales de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en
cumplimiento del acuerdo respectivo, queda PROTOCOLIZADA en la presente, en su
parte transcrita, el ACTA DE LA ASAMBLEA GENERAL.
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ORDINARIA ANUAL Y EXTRAORDINARIA, celebrada por los accionistas de la expresada
sociedad, el dia treinta y uno de mayo de mil novecientos noventa y seis, que
aparece relacionada en el antecedente tercero de este instrumento.
SEGUNDA. En consecuencia, se tienen por formalizados los siguientes
acuerdos:
A). Por ampliado el objeto social de "DIRSAMEX", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, y con efectos a partir del treinta y uno de mayo de mil
novecientos noventa y seis, modificandose al efecto el articulo tercero de los
Estatutos Sociales, para quedar redactado en los siguientes terminos:
"ARTICULO III. La sociedad tendra por objeto:
1. Proporcionar toda clase de servicios tecnicos, administrativos, de
asesoria y de supervision a empresas industriales, comerciales y de servicios,
tanto en Mexico, como en el extranjero, y recibir dichos servicios.
2. La prestacion de todo tipo de servicios, en especial servicios de
manufactura o fabricacion de cosmeticos, articulos de belleza para el cuidado y
la higiene personal, articulos de tocador ornamentos y articulos de joyeria a
todo tipo de personas fisicas o morales, comerciantes o no.
3. Adquirir, vender, establecer, arrendar, subarrendar, usar, operar y
poseer en cualquier forma permitida por la Ley, fabricas, talleres, plantas,
almacenes, oficinas, tiendas y demas establecimientos necesarios para la
realizacion del objeto social, asi
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como adquirir toda clase de negociaciones industriales, comerciales y de
servios, incluyendo acciones, participaciones e instrumentos por ellas emitidos.
4. Importar, exportar, comprar, vender, distribuir, industrializar y, en
general, negociar con toda clase de materias primas, productos terminados o semi
terminados, mercaderias en general y efectos de comercio.
5. Importar, exportar, comprar, vender y negociar en cualquier otra forma
con toda clase de maquinaria, herramientas, equipo y partes y refacciones de los
mismos.
6. Solicitar, obtener, registrar, comprar, utilizar, ceder o en cualquier
otra forma disponer o adquirir derechos de propiedad industrial como invenciones
modelos de utilidad, disenos industriales, patentes, marcas, denominaciones de
origen, secretos industriales, avisos y nombres comerciales asi como derechos de
propiedad intelectual como los derechos de autor.
7. Establecer sucursales subsidiarias, agencias y oficinas de
representacion en Mexico y en el Extranjero.
8. Representar o actuar como contratista, subcontratista, comisionista,
agente o representante, en la Republica Mexicana y en el Extranjero de empresas
industriales, comerciales, y de servicios, sean nacionales o extranjeras, y
designar contratistas, subcontratistas, comisionistas, agentes o representantes.
9. Adquirir, poseer, arrendar, subarrendar, comprar, vender y negociar en
cualquier otra forma permitida por la Ley con bienes inmuebles, incluyendo la
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adquisicion establecimiento y operacion de laboratorios de investigacion.
10. Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales, comerciales y de servicios.
11. Dar y tomar dinero en prestamo con o sin garantias de cualquier tipo,
emitir, suscribir, aceptar, garantizar y negociar con bonos, obligaciones y
demas titulos de credito, con la intervencion de las instituciones que en cada
caso se requiera de acuerdo con la Ley.
12. Garantizar obligaciones de terceros.
13. En general, realizar toda clase de actos y celebrar toda clase de
contratos, sean civiles o mercantiles, permitidos por la Ley."
B) Por designados como Delegados Especiales de "DIRSAMEX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, al senor Licenciado LUIS ALFONSO CERVANTES MUNIZ y
a la senorita Licenciada ELISA IGLESIAS ALVAREZ, quienes gozaran de todas las
facultades contenidas en el acta que ha quedado Protocolizada Parcialmente,
mismas que se tienen aqui por reporducidas como si se insertasen a la letra:
TERCERA. El senor Licenciado LUIS ALFONSO CERVANTES MUNIZ y la senorita
Licenciada ELISA IGLESIAS ALVAREZ, en su citado caracter de Delegados Especiales
de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
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liberan al suscrito Notario de la obligacion de inscribir el primer testimonio
de esta escritura, en el Registro Publico de la Propiedad y de Comercio del
Distrito Federal, siendo por cuenta de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, todos los gastos, derechos y honorarios que dicho tramite origine.
CUARTA. Los gastos y honoraios que esta escritura origine, seran por
cuenta de "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifiestan el senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, y la
senorita Licenciada ELISA IGLESIAS ALVAREZ, bajo protesta de decir verdad y
advertidos previamente de las penas en que incurren quienes declaran con
falsedad ante Notario, que:
A) Las firmas autografas que aparecen al final del acta que ha quedado
protocolizada, corresponden a las personas que se les atribuyen.
B) "DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, se encuentra inscrita
en el Registro Nacional de Inversiones Extranjeras, segun constancia de
inscripcion marcada con el numero diez mil quinientos veintiseis de la Seccion
segunda, expedida el dieciocho de febrero de mil novencientos noventa y uno, y
copia de dicha constancia, se agrega al apendice de esta escritura en una foja
util y con la letra "A".
C) LA PERSONALIDAD que ostentan no les ha sido revocada ni en forma
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alguna limitada, y acreditan la misma, asi como la legal constitucion de su
representada, con los documentos relacionados en los antedecentes de la
presente.
POR SUS GENERALS, los comparecientes declaran ser de mixicanos por
nacimiento; el senor Licenciado LUIS ALFONSO CERVANTES MUNIZ, originario del
Distrito Federal, nacio el dieciseis de noviembre de mil novecientos cincuenta y
cinco, casado, Licenciado en Derecho. con domicilio en la calle Campos Eliseos
numero trescientos cuarenta y cinco, tercer piso, colonia Chapultepec Polanco,
Delegacion Miguel Hidalgo, Distrito Federal, quien es de mi personal
conocimiento; la senorita Licenciada ELISA IGLESIAS ALVAREZ, originaria del
Distrito Federal, nacio el veinticuatro de febrero de mil novecientos sesenta y
ocho, soltera, Licenciada en Derecho, con el mismo domicilio que el inmediato
anterior, quien tambien es de mi personal conocimiento.
FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el Notario;
lo relacionado e inserto concuerda con sus originales a que me remito; los
comparecientes a quienes explique ampliamente el valor y las consecuencias
legales de esta escritura, me son conocidos y tienen capacidad legal; la misma
les fue leida y conformes con ella la firma el dia cuatro del mismo octubre, en
que desde luego AUTORIZO.
LUIS ALFONSO CERVANTES MUNIZ. - Firma. - ELISA IGLESIAS ALVAREZ. -- Firma. --
CARLOS ANTONIO REA FIELD. - Firma. - El sello de autorizar.
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ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA
"DIRSAMEX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A SU SOLICITUD. - VA EN ONCE
FOJAS UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS. - DOY FE. - MEXICO, DISTRITO
FEDERAL A CUATRO DE OCTUBRE DE MIL NOVECIENTOS NOVENTA Y SEIS.
INSCRITO EN EL REGISTRO PUBLICO DE COMERCIO EN EL
_OLIO MERCANTIL NUMERO 145450
_ERECHOS 360. REG ___ _ 207085
346 DE F_____ 10-10-96
MEXICO, D.F., A. 15 DE Octobre 1996
EL REGISTRADOR EL DIRECTOR GENERAL DEL REGISTRO
PUBLICO DE LA PROPIDADA Y DE
COMERCIO DEL D.F.
- -----------------------------
LIC. ARASCELI NAVARRO CORDOBA
---------------------------------
LIC. JULIO A. PREEZ BENITEZ
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EXHIBIT 3.7(A)
Estatutos Sociales of DIRSAMEX, S.A. de C.V.
Name, Domicile, Purpose, Duration and Nationality
Article 1. The name of the company is "Dirsamex" which denomination shall
always be followed by the words "Sociedad Anonima de Capital Variable," or by
their abbreviation, "S.A. de C.V."
Article 2. The domicile of the company is Distrito Federal, Mexico.
However, the company may establish agencies or branches in any other part of
Mexico or a foreign territory, or designate conventional domiciles for the
execution of specific acts and contracts.
Article 3. The purpose of the company is:
1. To offer all types of technical, administrative and supervisory services to
industrial or commercial enterprises, in both Mexico and abroad, and to receive
the same services from such enterprises.
2. To offer all types of services, especially the manufacture and fabrication of
cosmetics, beauty products, personal care and hygiene products, ornamental
jewelry and other related activities.
3. To acquire, sell, establish, lease or sublease, use, operate and possess, in
any manner permitted by law, factories, warehouses, workshops, offices and
stores, and any other establishments necessary to further the corporate
objectives, and to acquire all classes of business, whether industrial or
commercial.
4. To import, export, buy or sell, distribute or in any other manner do business
with raw materials, semi-finished products, or with finished products.
5. To import, export, buy or sell, or in any other manner do business with
machinery and equipment and its component parts thereof.
6. To solicit, obtain, register, purchase, utilize, grant to third parties, and
use any other form of acquiring or disposing of rights in industrial property,
including patents, copyrights, trademarks and trade secrets.
7. To establish agencies, branches, and subsidiaries in Mexico or abroad.
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8. To represent or act as contractor or subcontractor, commissioned employee or
any other form of agent in Mexico or abroad on behalf of industrial enterprises,
whether they are in Mexico or abroad, and to designate the same for the offering
of similar services to the company.
9. To acquire, possess, lease or sublease, purchase and sell, in any form
permitted by law, any real property, including the acquisition or establishment
of experimental laboratories.
10. To supply and receive services for the manufacture of cosmetics products or
to supply and receive processed materials related to such products from or to
all types of commercial and industrial entities.
11. To lend or borrow money by any means, with or without security, to issue
bonds or other types of obligations, and to carry out acts for the purpose of
obtaining credit or granting credit. The foregoing shall be carried out in each
case under the supervision and intervention of those institutions whose
participation is required by law.
12. To guaranty the obligations of third parties.
13. In general, to carry out any and all acts necessary to realize the purposes
of the company, as permitted by law.
Article 4. The duration of the company shall be 99 years, beginning with
the date of its incorporation.
Article 5. The capital stock shall be variable. The fixed portion of the
capital, which is not be subject to withdrawal, is Ps.$10,000.00 New Pesos (Ten
Thousand New Pesos), represented by 10,000 ordinary, Series "A" shares, with a
par value of Ps.$1.00 New Peso (One New Peso) per share.
The variable portion of the capital stock shall be designated as Series
"B" shares.
In any case, the participation of foreign investors in the capital stock
of the company shall be subject to the applicable provisions of the Law on
Foreign Investment and its applicable regulations.
Stock certificates and provisional certificates shall comply with the
requirements specified in Article 125 of the General Corporations Law; stock
certificates may represent
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title to one or more shares and shall bear the signature of two members of the
Board of Directors or by the Sole Administrator, as the case may be.
Article 6. Each increase or reduction of the fixed capital stock of the
company shall be declared by an Extraordinary Stockholders' Meeting. Each
increase or reduction of the variable capital stock of the company shall be
declared by an Ordinary Shareholders' Meeting.
According to the provisions of Article 132 of the General Corporations
Law, in the case of increase in the capital stock of the corporation,
stockholders shall have a preemptive right to subscribe to those shares
representing the increase in the capital stock of the company. In such a case,
the subscription right may be exercised in proportion to the number of
outstanding shares which the stockholder already owns.
Resolutions adopted at Stockholders' Meetings that approve any increase in
the capital stock of the company shall by published in the Official Gazette of
the Federation (Diario Oficial de la Federacion). Additionally, notice of the
adoption of such resolutions shall be sent to the Stockholders by certified mail
prior to the date of publication, to those addresses that are inscribed in the
Stock Registry Book of the company. In the event that there are Stockholders
domiciled outside of Mexico, notice shall be sent by certified air mail.
The Stockholders may exercise their preemptive rights within fifteen (15)
calendar days following the date of publication of the resolution adopting an
increase in the capital stock of the company. However, if the entire capital
stock of the company shall have been represented in any meeting adopting an
increase in capital stock, the period of fifteen (15) calendar days shall be
counted from the date of such meeting.
Article 7. The company may reacquire shares representing the capital stock
of the company for their redemption with dividends through the means specified
by resolution of an Extraordinary Stockholders' Meeting, without diminution of
the capital stock of the company. The designation of those shares that shall be
redeemed shall be made by means of a lottery, the terms and conditions of which
shall be determined by the Extraordinary Stockholders' Meeting, or by their
delegation of such powers to the Board of Directors. The foregoing redemption
right shall be subject to the maximum amount of profits that may be issued for
such a purpose, such amount to be determined by the Extraordinary Stockholders'
Meeting. Title to those shares that shall have been redeemed according to the
provisions of this paragraph shall be deemed extinguished upon redemption.
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ADMINISTRATION
Article 8. The administration of the company shall be entrusted to a Sole
Administrator or to a Board of Directors composed of the number of Directors
determined by the Ordinary Stockholders' Meeting. If the Stockholders shall deem
it necessary, they may designate an Alternate Sole Administrator or Alternate
members of the Board of Directors, as the case may be. The Sole Administrator or
the members of the Board of Directors, as the case may be, need not be
Stockholders. They shall hold their offices until their successors take their
place, but they may be reelected and shall receive compensation as determined by
the Ordinary Stockholders' Meeting.
Article 9. In the event that the company is administered by a Board of
Directors, any Stockholder or group of Stockholders representing at least 25%
(Twenty-Five Percent) of the capital stock of the company shall have the right
to appoint one member of the Board of Directors and his/her Alternate. In the
event that no Stockholder or group of Stockholders exercises the minority
Stockholders' rights established by this Article, all the members of the Board
of Directors shall be appointed by a majority of Stockholder votes.
Article 10. The Board of Directors or the Sole Administrator, as the case
may be, shall have the following authority and obligations:
1. General power of attorney for lawsuits and collections, with the
broadest power as permitted by law, in the terms of the first paragraph of
Article 2554 of the Civil Code for the Federal District and its correlative
Articles of any Civil Code of the states comprising the United Mexican States
(the "Civil Code"), with all general and such special powers as may be required,
including those provided in Article 2587 of the Civil Code, wherefore they will
have, without limiting the generality of the foregoing, the following authority:
to represent the company before Federal, State, Municipal, Administrative and
Judicial authorities, before the Secretary of Labor and before Conciliation and
Arbitration Boards and to sign such documents as may be required in the exercise
of this power of attorney; to exercise all types of rights and actions before
any and all authorities and Boards of Conciliation and Arbitration; to submit to
any jurisdiction; to promote and withdraw from litigation; to file charges and
criminal complaints and appear as offended party and assist the District
Attorney and grant pardons; to compromise; to submit to arbitration; to take and
answer depositions; to accept and release all kind of guarantees; to assign
property and to perform all other actions which are expressly determined by law.
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2. General power of attorney for acts of administration, under the terms
of the second paragraph of Article 2554 of the Civil Code, including the
authority to execute, amend, carry out and rescind all kind of contracts and
agreements, to obtain loans and in general, to carry out all acts that are
related directly or indirectly to the corporate purposes.
3. General power of attorney for acts of ownership, under the terms of the
third paragraph of Article 2554 of the Civil Code, including the authority to
acquire personal and real property, to transfer title to as well as to encumber
by pledge, mortgage or otherwise, personal and real property.
4. Power to issue, sign and endorse negotiable instruments in accordance
with Article 9 of the General Law of Negotiable Instruments and Credit
Transactions.
5. Power to establish branches and agencies in any location of the United
Mexican States or abroad and to close such branches or agencies.
6. Power to designate and remove managers, officers and employees of the
company and to determine their powers, duties and remuneration.
7. Power to formulate internal regulations affecting employment in the
company.
8. Power to convene Stockholders' Meetings and to execute their
resolutions.
9. Power to exercise any other authority granted to it in these estatutos
and those powers that are by implication necessary to carry out the terms of the
estatutos.
10. Power to confer and revoke general and special powers of attorney
within the scope of the aforementioned powers.
Article 11. To facilitate the administration of the company when the Board
of Directors are in session, a President and a Secretary of the Board of
Directors shall be designated by the Ordinary Stockholders or by the Board of
Directors, such designation to be made for the purpose of performance of
specific duties on the part of the President and Secretary. The Secretary does
not have to be a member of the Board of Directors.
Article 12. In order for meetings of the Board of Directors to be legally
held, the attendance of at least the majority of the Directors or their
respective alternates shall always be required. Resolutions of the Board of
Directors shall be valid only if adopted
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by the affirmative vote of the majority of the members of the Board of Directors
present at the meeting.
In accordance with the provisions of Article 143 of the General
Corporations Law, the members of the Board of Directors may adopt valid
resolutions without a formal meeting, provided that such resolutions, which
shall be made in writing, are signed by all the members of the Board of
Directors. In any case, it shall be the responsibility of the person designated
as Secretary of the Board of Directors to ensure the authenticity of the
signatures, and their preservation in the corporate records.
Article 13. The President of the Board of Directors does not hold voting
power to break any impasse that may occur during any meeting of the Board of
Directors. If the President or the Secretary do not preside over any meeting of
the Board of Directors, their respective duties shall be carried out by a board
member designated by the majority vote of those Directors who are present at the
meeting. All acts of the Board shall be transcribed in a Corporate Minutes Book,
which shall be signed by the President and Secretary of the Board of Directors,
or any other Director attending such a meeting.
Article 14. In order to guarantee the performance of their specific
duties, the Sole Administrator, or as the case may be, the Board of Directors
and their respective Alternates, shall deposit with the company PsN$100.00 (One
Hundred New Pesos) or in the alternative, a surety bond granted in favor of the
company in the same amount. Each member of the Board of Directors, or the Sole
Administrator, as the case may be, may not withdraw the amount granted to the
company as a guaranty until the discharge of their duties shall have been
approved by the Ordinary Stockholders' Meeting. Officers and other officials
shall grant to the company guaranties in the manner prescribed, if any, by the
Ordinary Stockholders' Meeting or the Board of Directors.
OVERSIGHT OF THE COMPANY
Article 15. The oversight of the company shall be entrusted to one or more
Statutory Auditors, as may be determined by the Stockholders in a General
Meeting. An Alternate Statutory Auditor may be designated for each Statutory
Auditor.
Article 16. The Statutory Auditors need not also be Stockholders of the
company; they may be reelected and shall continue to discharge their duties
until their successors take office.
Article 17. The Statutory Auditors shall have the powers and obligations
granted to them by Article 166 of the General Corporations Law.
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Article 18. The Statutory Auditors shall grant to the company the guaranty
amounts mentioned in Article 14 of these estatutos, and may only withdraw such
guaranty amounts if the discharge of their duties shall have been approved by
the Ordinary Stockholders' Meeting.
STOCKHOLDERS' MEETINGS
Article 19. Stockholders' meetings shall take place at the corporate
domicile. Those meetings which shall determine matters pursuant to Article 182
of the General Corporations Law shall be known as Extraordinary Stockholders'
Meetings. All other meetings shall be designated as Ordinary Stockholders'
Meetings.
Article 20. Calls for all Stockholders' Meetings shall be made by the Sole
Administrator or the President or Secretary of the Board of Directors, as the
case may be, in the manner permitted by law, or may be made by the Statutory
Auditor or Auditors. However, any Stockholder or group of Stockholders
representing at least 33% (Thirty-Three Percent) of the capital stock of the
company may, by written demand at any time, require the Sole Administrator or
the President or Secretary of the Board of Directors, or the Statutory Auditors,
to convene a meeting of the Stockholders to pass specifically upon those issues
enumerated in the demand letter. Any Stockholder holding at least one share of
the capital stock of the company shall have the same rights described herein in
the case of an event specified by Article 185 of the General Corporations Law.
If after the demand letter is served by the Stockholder or Stockholders holding
the rights mentioned in this Article 20 on the appropriate person, and such
person does not convene a meeting of the Stockholders within fifteen (15) days
following the date of the demand letter, such demand may be made upon any Civil
or District Judge by any interested Stockholder.
Article 21. Calls for Stockholders' Meetings shall be published in the
Official Gazette of the Federation (Diario Oficial de la Federacion) at least
fifteen (15) days prior to the date fixed for such a meeting. Additionally,
notice of calls shall be sent to Stockholders' by certified mail prior to the
date of publication. For those Stockholders who are domiciled outside of Mexico,
notice shall be sent by certified air mail. Calls and notices of calls for
Stockholders' Meetings shall contain an Agenda to be passed upon or discussed at
such a meeting and shall be signed by the person sending such notice.
Article 22. Stockholders' Meetings may be held without the need for prior
publication if the entire capital stock of the company is represented at any
meeting.
Article 23. Only those Stockholders whose names are registered in the
Stock Registry Book of the company shall be admitted to Stockholders' Meetings.
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Article 24. Stockholders may be represented at the meetings by an
attorney-in-fact holding a general or a special power of attorney or by an
attorney-in-fact designated by means of a simple letter of proxy.
Article 25. The acts of the Stockholders' Meetings shall be transcribed in
a Minute Book that shall be signed by those serving as President and Secretary
at the meeting, by the Statutory Auditors who are present at the meeting and by
those Stockholders or their representatives who wish to sign the Minute Book.
Article 26. Stockholders' meetings shall be presided over by the Sole
Administrator or the Chairman of the Board of Directors, as the case may be. In
their absence, such meetings shall be presided over by the person designated for
such purposes by the majority of those present at the corresponding meeting. The
Secretary of the Board of Directors shall act as Secretary of Stockholders'
Meetings and, in his absence, the person designated for such purposes by
Stockholders in the corresponding meeting.
Article 27. Ordinary Stockholders' Meetings shall take place at least once
a year within four (4) months following the close of the fiscal year. In
addition to the subjects specified in the Agenda, the Annual Stockholders'
Meeting may specifically discuss, approve and modify the report of the Board of
Directors, including reports on the financial condition of the company as
required under Article 172 of the General Corporations Law; the Stockholders
shall also receive the reports or accounts of the Statutory Auditors.
Article 28. Ordinary Stockholders' Meetings shall be considered legally
held on a first or subsequent call if Stockholders holding at least 50% (fifty
percent) of all of outstanding voting capital stock are present or represented
at such a meeting.
Article 29. Extraordinary Stockholders' Meetings shall be considered
legally held on a first call if at least 75% (seventy five percent) of the
outstanding voting capital stock of the company are present or represented in
such meetings; in the event of a second or subsequent call, the Extraordinary
Stockholders' Meeting shall be considered legally held if at least 50% (fifty
percent) of the outstanding voting capital stock of the company are present or
represented at such meetings.
Article 30. Resolutions of Ordinary Stockholders' Meetings shall be valid
if adopted by the affirmative vote of Stockholders representing a majority of
the outstanding capital stock of the company are present or represented at the
meeting, and when there shall have been convened a quorum as that term is
defined in Article 28.
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In the event of an Extraordinary Shareholders' Meeting, their
resolutions shall be valid if adopted by the affirmative vote of Stockholders
representing 50% (fifty percent) of the total outstanding voting capital stock
of the company.
Article 31. In accordance with Article 178 of the General Corporations
Law, the Stockholders may adopt valid resolutions without formally convening in
a meeting by written consent signed by all the Stockholders of the company
entitled to vote. In such a case, it shall be the responsibility of the person
designated as the Secretary of the Board of Directors to ensure the authenticity
of the Stockholders' signatures and to keep a record of the same.
FINANCIAL REPORTS
Article 32. Within four (4) months following the close of each fiscal
year, the Sole Administrator or the Board of Directors, as the case may be,
shall formulate the following financial reports respecting the company, which
shall contain all the information necessary to reflect the financial and
operational state of the company, as such reporting is required by Article 172
of the General Corporations Law:
a) The financial state of the company at the date of the close of the
fiscal year (Annual Financial Report).
b) Reports showing explanations and classifications of the operational
state of the company during the preceding fiscal year (Annual Business Report).
c) Reports indicating changes in the financial state of the company during
the course of the preceding fiscal year.
d) Reports indicating any changes in the items that make up the capital
stock of the company during the preceding fiscal year.
e) Any notes or clarifications accompanying any of the preceding reports.
Article 33. All financial and business reports, together with any
documents justifying the findings contained in the reports, shall be delivered
to the Statutory Auditor or Auditors, for their inspection, within one (1) month
of the date fixed for the Annual Shareholders' Meeting.
Article 34. Within fifteen (15) days following the date of receipt of
financial and business reports, the Statutory Auditors shall issue to the Sole
Administrator or to the Board of Directors, as the case may be, a written
opinion for the Stockholders discussing
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the veracity, sufficiency, and reasonability of the information which had been
presented to the Auditor(s) by the Sole Administrator or by the Board of
Directors, as the case may be.
The aforementioned documents shall remain in the possession of the Sole
Administrator or the Board of Directors, as the case may be, but shall be
available to the Stockholders for their review at least fifteen (15) days prior
to the Annual Stockholders' Meeting.
The financial reports, once approved, shall be sent for publication and
deposited in the manner prescribed by Article 177 of the General Corporations
Law.
Article 35. The net profits obtained in each fiscal year shall be applied
as follows:
1) 5% (five per cent) of the net profits shall be set aside for creating
or restoring the Legal Reserve, as the case may be, until it equals one-fifth of
the corporate capital stock.
2) The remainder shall be distributed as determined by the Stockholders in
an Ordinary Meeting.
Article 36. Losses, if there shall have been any, shall be applied against
the Legal Reserve, and if such Reserve is insufficient, against paid capital
stock, with the understanding that the obligations of the Stockholders with
respect to any obligations of the company shall be limited to the extent of the
par value of their respective shares.
DISSOLUTION AND LIQUIDATION
Article 37. The company shall be dissolved in such manner as generally
prescribed by applicable law. Once dissolved, the company shall be liquidated.
The liquidation shall be entrusted in one or more liquidators designated by the
Stockholders' in an Extraordinary Meeting resolving upon dissolution. If no such
designation shall have been made, the dissolution of the company shall be
entrusted in a Civil or District Judge of the corporate domicile at the request
of any Stockholder.
Article 38.In the event that the Stockholders shall not give specific
instructions to the liquidator(s), the purpose of the liquidation shall proceed
upon the following general grounds.
1) Conclusion of all pending business in the manner least prejudicial to
creditors and the Stockholders.
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2) Recovery of all debts and accounts receivable and the payment by the
company of any outstanding debts.
3) The sale of all the assets of the company.
4) Preparation of final balances after liquidation.
5) Distribution of any remaining proceeds of the liquidation, if any,
among the Stockholders in proportion to their participation in the capital stock
of the company.
GENERAL PROVISIONS
Article 39. The promoters of the company, as such may exist, shall hold no
participation in the company upon the date of incorporation.
Article 40. The company is of Mexican nationality. Any foreigner who, at
the time of incorporation or at any time thereafter, acquires a corporate
interest or participation in the company shall be considered by that fact alone
as Mexican with respect to such interest or participation and it shall be
understood that such foreigner agrees not to invoke the protection of its
Government under penalty, in case of failure to comply with such agreement, of
forfeiture of such interest or participation in favor of the Mexican Nation.
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EXHIBIT 3.8
LIBRO NUMERO NOVENTA Y SIETE
ESCRITURA NUMERO (3,446) TRES MIL CUATROCIENTOS CUARENTA Y SEIS.
EN MEXICO, DISTRITO FEDERAL, a los veintiocho dias del mes de abril
de mil novecientos noventa y cinco, yo el Litenciado CARLOS ANTONIO REA FIELD,
titular de la Notaria ciento ochenta y siete del Distrito Federal, hago constar
que ante mi comparecen: los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados Especialies de
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y exponen que
formaliozan:
La PROTOCOLIZACION PARCIAL DEL ACTA DE LA ASAMBLEA GENERAL ORDINARIA
ANUAL Y EXTRAORDINARIA, celebrada por los accionistas de law expresada Sociedad;
LA PROTOCOLIZACION DE LOS NUEVOS ESTATUTOS SOCIALES de la misma
Socieda;
El OTORGAMIENTO DE PODERES GENERALES;
Y la REVOCACION DE PODER ESPECIAL.
Actos que se contienen en los antecedentes y clausulas siguientes:
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A N T E C E D E N T E S
I. ESCRITURA CONSTITUTIVA. Por escritura numero veintinueve mil
seiscientos diez, de fecha dos de enero de mil novecientos noventa y uno,
otorgada ante Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del
Distrito Federal, inscrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta ciudad, en el folio mercantil ciento cincuenta y
dos mil quinientos treinta y nueve, previo permiso concedido por la Secretaria
de Relaciones Exteriores marcado con el numero cero nueve millones sesenta y
cuatro mil novecientos trece, expediente numero nueve mil nueve millones sesenta
y siete mil ochocientos veintiuno, se hizo constar el contrato de Sociedad, en
virtud del cual se constituyo "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, con domicilio en el Distrito Federal, una duracion de NOVENTA Y NUEVE
AMOS, capital social minimo de DIEZ MILLONES DE PESO, Moneda National
(actualmente DIEZ MIL NUEVOS PESOS, Moneda Nacional) y maximo ilimitado, con
clausula de admision de extranjeros y el objeto social que consta en el
instrumento que aqui se relaciona, del cual en lo conducente copio lo siguiente:
"ESTATUTOS. OBJETO. ARTICULO TERCERO. La sociedad tendra por objeto:
El ejercicio de la industria y el comercio en general y, en forma particular,
producir, elaborar, mezclar, adquirir, vender, importar, exportar, distribuir y
negociar en cualquier forma con toda clase de articulos para el cuidado e
higiene personal, para la
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salud y la belleza, productors de tocador, perfumes y cosmeticos, ornamentos
personales y articulos de joyeria y demas articulos relacionados, por lo que
enunciativa y no limitativamente la sociedad podra:
1) Fabricar, procesar, comprar, vender, distribuir, importar,
exportar y, en general, negociar o comerciar en cualquier otra forma con
toda clase de mercaderias, maquinaria diversa, equipo, partes y artefactos
para uso industrialies o comercialies;
2) Importar, exportar, comprar, vender, distribuir, y, en general,
negociar o industrializar toda clase de materias primas, productos
terminados o semiterminados y articulos de comercio;
3) Prestar y recibir toda clase de servicios tecnicos,
administrativos y de supervision;
4) Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrendamiento, en comodato o en subcomodato, administrar, operar o
poseer en cualquier forma permitida por la ley fabricas, plantas
industriales, talleres, laboratorios, almacenes o bodegas, oficinas,
tiendas y otro establecimientos y bienes inmuebles como sea necesario para
el logro de su objeto social;
5) Adquirir, enajenar, importar, exportar, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes
muebles;
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6) Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales,
derechos de autor, patentes, invenciones y procesos, asi como disponer de
ellos;
7) Actuar como contratista, subcontratista, agentes o representante
y designar subcontratistas, agentes o representantes;
8) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o
mercantiles, y formar parte de ellas;
9) Representar o ser agent o comisionista de negociaciones
comerciales o industriales nacionales o extranjeras;
10) Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito
con la intervencion de las instituciones senaladas por la ley, y otorgar
fianzas o garantias de cualquier clase respecto de obligaciones contraidas
o de titulos emitidos o aceptados por la propia sociedad o por terceros;
11) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito; y
12) Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ADMINISTRACION DE LA SOCIEDAD. ARTICULO OCTAVO. Le administracion de
la sociedad estara confiada a un Administrador Unico o a un Consejo
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de Administracion...Si la Asamblea lo considera pertinente, podra designar un
Administrador Unico Suplente...Los Consejeros y sus Suplentes podran ser o no
accionistas; desempanaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de sus puestos; podran ser reelectos.
ARTICULO DECIMO. El Consejo de Administracion o el Administrador
Unico, en su caso, sera el representante legal de la sociedad y tendra las
siguientes facultades y obligaciones:
1. Ejercitar el poder para pleito y cobranzas, con todas las
cacultades generales y las especiales que requieran de clausula especial
de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispusesto por el primer parrafo del articulo does mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos de los Codigo Civiles de las entidades federativas de los
Estados Unidos Mexicanos, estando por lo tanto facultado para desistirse
de procedimientos, aun del juicio de amparo, formular querellas y
denuncias penales y desistirse de ellas; coadyuvar con el Ministerio
Publico y otorgar perdon; transigir; someterse a arbitraje; formular y
absolver posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamene autorizados por la ley, entre los que se incluye
representar a la sociedad ante autoridades y tribunales penales, civiles,
administrativos y del trabajo;
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2) Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos;
3) Ejecutar actos de dominio de acuerdo con lo previsto en el tercer
parrafo del articulo dos mil quinentos cincuenta y cuatro del Codigo Civil
para el Distrito Federal y articulos correlativos de los Codigo Civil para
el Distrito Federal y articulos correlativos de los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos;
4) Suscribir titulos de credito de conformidad con el articulo
noveno de la Ley General de Titulos y Operaciones de Credito;
5) Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad
y designar a las personas que podran girar contra las mismas;
6) Nombrar y remover al director general y demas directores,
gerentes, funcinarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades;
7) Formular reglamentos interiores de trabajo;
8) Convocar Asambleas de Accionistas y ejecutar sus resoluciones;
9) Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; y
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10) Conferir poderes generales y especiales en los terminos de los
puntos uno, dos, tres, cuatro y cinco anteriores, con o sin facultades de
substitucion, asi como recovar los poderes que hubieran sido otorgados.
ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos
el Administrador Unico...y sus respectivos suplentes, al tomar posesion,
depositaran con la sociedad la cantidad de cien mil pesos, moneda nacinal, cada
uno, o, a su eleccion, exhibiran poliza de fianza otorgada por compania
autorizada por igual suma...el Administrador Unico segun sea el caso, no podran
retirar las garantias otorgadas hasta que sugestion haya sido aprobada por la
Asamblea de Accionistas. Los directores y demas funcionarios de la sociedad
otorgaran las garantias que determine la Asamblea de Accionistas o el Consejo de
Administracion que lo designe.
VIGILANCIA DE LA SOCIEDAD. ARTICULO DECIMO QUINTO. La vigilancia de
la sociedad estara encomendada a uno o dos Comisarios, segun lo determine la
Asamblea de Accionistas. Si la Asamblea lo considerare pertinente designara uno
o dos Comisarios Suplentes.
ARTICULO DECIMO SEXTO. Los Comisarios no necesitan ser accionistas
de la sociedad; podran ser reelectos y desempenaran su cargo hasta que las
personas designadas para suplirlos tomen posesion de los mismos.
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ARTICULO DECIMO SEPTIMO. Los Comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades mercantiles.
ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias
senaladas en el articulo decimo cuarto de estos estatutos para los Consejeros y
solo podran retirarlas cuando su gestion haya sido aprobada por Asamblea de
Accionistas.
DISPOSICIONES TRANSITORIAS. SEGUNDA. Se designan como Administrador
Unico...de la Sociedad a los Senores Leticia Navarro Ochoa.
CUARTA. Se designan como Comisario y Comisario Suplente de la
sociedad a los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguea
Islas, respectivamente.
QUINTA. Los Administratodors, Funcionarios y Comisarios designados
han aceptado sus cargos y tienen caucionado su manejo"
II. OTORGAMIENTO DE PODER ESPECIAL. Por escritura numero treinta mil
trescientos treinta y ocho, de fecha cinco de junio de mil novecientos noventa y
uno, otorgada ante el Licenciado Roberto Nunez y Bandera, titular de la Notario
uno del Distrito Federal, inscrito su primer testimonio en el Registro Publico
de la Propiedad y de Comercio de esta ciudad, en el folio mercantil ciento
cincuenta y dos quinientos treinta y nueve, se hizo constrar el PODER ESPECIAL
que otorgo "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en favor
de la senora BLANCA
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MARGARITA CONTRERAS ROBLES, instrumento del cual en lo conducente copio lo
siguiente:
"...CLAUSULA UNICA. Por medio de este instrumeno DISTRIBUIDORA
VENUS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE...otorga en favor de la Senora
Blanca Margarita Contreras Robles, poder especial tan amplio como en derecho se
requiera, para que represente a la sociedad mandante en cualquier asunto,
reclamacion o tramite en que sea parte o tercera interesada ante la Secretaria
de Salud y ante cualquier dependencia de dicha Secretaria, especialmente pero
sin limitar ante la Direccion General de Control Sanitario de Bienes y
Servicios, en particular pero tambien sin limitar para solicitar, tramitar y
obtener el registro de productos de la sociedad mandante, asi como cualquier
otra gestion requierida para dar cumplimiento a las disposiciones de la Ley
General de Salud, sus Reglamentos y demas disposiciones administrativas que de
dicha Ley y Reglamento emanan. Limitadas tales negocios, la apoderada gozaran de
las facultades mas amplias que senalan los dos primeros parrafos del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
en materia comun, y para toda la Republica en materia federal y articulos
correlativos en los Codigos de las entidades federativas que integran los
Estados Unidos Mexicanos, incluyendo facultades para suscribir todo tipo de
documentos a excepcion de titulos de credito...".
III. NOMBRAMIENTO DEL ADMINISTRADOR UNICO SUPLENTE. Por escritura
numero treinta y un mil seiscientos cincuenta y ocho, de fecha veinte de
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diciembre de mil novecientos noventa y uno, otorgada ante el Licenciado Roberto
Nunez y Bandera, titular de la Notario uno del Ditrito Federal, inscrito su
primer testimonio en el Registro Publico de la Propiedad y de Comercio de estat
ciudad, en el folio mercantil numero ciento cincuenta y dos mil quinientos
treinta y nueve, instrumento por el que se protocolizo un acta de Asamblea
Geneal Ordinaria celebrada por los accionistas de "DISTRIBUIDORA VENUS",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el veinte de septiembre de mil novecientos
noventa y uno, por la que se formalizaron entre otros acuerdos, el de designar
como Administrador Unico Suplente de la expresada Sociedad, al senor LUIS
ALFONSO CEVANTES MUNIZ.
IV. ACTA QUE SE PROTOCOLIZA PARCIALMENTE. Los comparecientes me
exhiben el libro de actas de Asambleas de accionistas de "DISTRIBUIDORA VENUS",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en el que de la foja treinta y uno a la
foja cincuenta y uno, inclusive, aparece asentada el acta de la Asamblea General
Ordinaria Anual y Extraordinaria, celebrada por los accionistas de la expresada
Sociedad, el dia primero de agosto de mil novecientos noventa y cuatro, que en
lo conducente a continuacion transcribo:
"En el Distrito Federal, Mexico, a las 13:00 del lo de agosto de
1994, se reunieron en el domicilio social de DISTRIBUIDORA VENUS, S.A. DE C.V.,
los senores Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de
C.V., y de Plumibol, S.A. de C.V., Alejandro Nila Rosales, en representacion de
Calzada Mariano
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Escobedo 151-155, S.A. de C.V., de Braun de Mexico y Compania, de C.V., y de
Oral-B Laboratorios, S.A. de C.V., para celebrar ASAMBLEA GENERAL ORDINARIA
ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de DISTRIBUIORA VENUS, S.A. DE C.V., a la
que fueron previa y oportunamente convocados. Estuvieron tambien presentes los
senores Fernando Holguin Maillard, Comisario de la sociedad, Luis Alfonso
Cervantes Muniz, Julio Pedro Cepeda Rebollo y Sergio Rene Aparicio Gonalez,
quienes fueron invitados al evento. Por designacion unanime de los presentes
fungio como Presidente de la Asamblea el senor alejandro Sainz Orantes. Asimismo
se designo como Secretario al senor Luis Alfonso Cervantes Muniz. El Presidente
designo escrutador al senor Alejandro Nila Rosales quien, despues de aceptar su
cargo, reviso los instrumentos conteniendo los mandatos de los representantes de
los accionistas y el Libro de Registro de Acciones de la sociedad y certifico,
en union del Comisario, que se encontraba representada en la Asamblea la
totalidad de las acciones de la sociedad actualmente en circulacion,
distribuidas en la siguiente forma: ACCIONISTAS. ACCIONES SERIE "A" "B". VOTOS.
Grupo Jafra, S.A. de C.V., representada por el senor Alejandro Sainz Orantes
9,996 ACCIONES SERIE "A". 9,996 VOTOS. Plumibol, S.A. de C.V., representada por
el senor Alejandro Sainz Orantes. 1 ACCIONES SERIE "A". 1 VOTO. Calzada Mariano
Escobedo 151-155, S.A. de C.V., representada por el senor Alejandro Nila
Rosales. 1 ACCIONES SERIE "B". 1 VOTO. Braun de Mexico y Compania, de C.V.,
representada por el senor Alejandro Nila
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Rosales. 1 ACCIONES SERIE "B". 1 VOTO. Oral-B Laboratorios, S.A. de C.V.,
representada por el senor Alejandro Nila Rosales. 1 ACCIONES SERIE "B". 1 VOTO.
TOTAL: 9,997 ACCIONES SERIE "A". 3 ACCIONES SERIE "B" - 10,000 VOTOS. En virtud
de encontrarse debidamente representada en la Asamblea la totalidad de las
acciones emitidas por la sociedad actualmente en circulacion, el Presidente
declaro la misma legalmente instalada, no obstante no haberse publicado la
convocatoria respectiva, con fundamento en el articulo 188 de la Ley General e
Sociedades Mercantiles. La Asamblea, por unanimidad de votos, aprobo la
declaratoria anterior y procedio a desahogar los asuntos contenidos en el
siguiente.
ORDEN DEL DIA. V. Designacion de las personas que habran de fungir
como Administrador Unico y Administrador Unico Suplente y como Comisario y
Comisario Suplente de la sociedad, respectivamente.
VII. Designacion del senor Julio Pedro Cepeda Rebollo como Director
General de la sociedad y otorgamiento de poderes en su favor.
VIII. Designacion del senor Sergio Rene Aparicio Gonzalez como
Director de Relaciones Industriales de la sociedad y otorgamiento de poderes en
su favor.
IX. Revocacion de poderes otorgados por la sociedad.
X. Modificacion total a los estatutos que rigen a la sociedad para
adecuarlos a las reformas a la Ley General de Sociedades Mercantiles en vigor a
partir del 11 de junio de 1992.
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XI. Designacion de delegados para formalizar las resoluciones
adoptadas por la Asamblea.
PUNTO CINCO. En relacion con este quinto punto del Orden del Dia el
Presidente de la Asamblea informo a los presentes sobre la renuncia, con efectos
a partir del 4 de julio de 1994, de la senora Leticia Navarro Ochoa a su cargo
de Administradora Unica de la sociedad. Preciso el senor Alejandro Sainz Orantes
que la renuncia arriba mencionada surte sus efectos a partir del 4 de julio de
1994. Por su parte, el senor Alejandro Nila Rosales. representante en la
Asamblea de los accionistas Calzada Mariano Escobedo 151-155, S.A. de C.V. de
Barun de Mexico y Compania, de C.V. propuso que en el evento que fuera aceptada
la renuncia sometida a consideracion de la
Asamblea i) se designase al senor Julio Pedro Cepeda Rebollo Administrador Unico
de la sociedad, y ii) se ratificase la designacion del senor Luis Alfonso
Cervantes Muniz para continuar desempanandose como Administrador Unico Suplente.
Incluyo tambien en su propuesta el senor Nila Rosales la ratificacion de la
designacion de los senores Fernando Holguin Maillard y Eduardo Rodriguez Islas
como Comisarios Propietario y Suplente, respetivamente, de la sociedad. Entonces
el Secretario de la Asamblea, senor Luis Alfonso Cervantes Muniz, informo a los
presentes que la designacion del senor Julio Pedro Cepeda Rebollo como
Adminisrador Unico de la sociedad fue debidamente autorizada por el Insituto
Nacional de Migracion, como consta en el oficio 12207 dictado por dicha
autoridad en el expediente 5/214490 de lo. de junio de 1994, con fundamento
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en las disposiciones applicables de la Ley General de Poblacion. Aclaro el
propio senor Cervantes Muniz que por lo que respecta a la ratificacion de su
designacion no se requiere autorizacion alguna por parte de las autoridades
migratorias, dada su nacionalidad mexicana. Despues de intercambiar impresiones
sobre lo vertido respecto de este qunito punto del Orden del Dia, los presentes,
por unanimidad de votos, adoptaron las siguientes.
RESOLUCIONES. "1. Se acepta, con efectos al 4 de julio de 1994, la
renuncia sometida por la senor Leticia Navarro Ochoa a sue cargo de
Administradora Unica de la sociedad, cargo para el que fue designada por
escritura publica 29,610 de 2 enero de 1991 otorgada por el licenciado Roberto
Nunez y Bandera, Notario Publico 1 del Distrito Federal, el primer testimonio de
la cual quedo debidamente inscrito en el Registro Publico de Comercio de esta
capital en el folio mercantil 152539."
"2. Se agradecen a la senora Leticia Navarro Ochoa los relevantes
servicios que presto a la sociedad en su desempeno como Administradora Unica de
la misma, y todos los accionistas y representantes de accionistas hacen votos
para que tenga el mayor de los exitos en sus nuevas e importantes
responsabilidades en Jafra Cosmetics International, Inc."
"3. Con efectos a partir del 4 de julio de 1994 se designa al senor
Julio Pedro Cepeda Rebollo como Administrador Unico de DISTRIBUIDORA VENUS, S.A.
DE C.V., haciendose constar que la designacion que en este acto se resuelve fue
debidamente
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autorizada por el Insituto Nacional de Migracion, como consta en el oficio 12207
dictado por dicha autoridad en el expediente 5/214490 de 1o. de junio de 1994,
con fundamento en las disposiciones aplicables de la Ley General de Poblacion."
"4. Se ratifica la designacion del senor Luis Alfonso Cervantes
Muniz como Administrador Unico Suplente de la sociedad."
"5. Se ratifica la designacion de los senores Fernando Holguin
Maillard y Eduardo Rodriguez Islas como Comisarios Propietario y Suplente,
respectivamente, de DISTRIBUIDORA VENUS, S.A. DE C.V."
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo
procedio a agradecer a la misma su designacion como Administrador Unico de
DISTRIBUIDORA VENUS, S.A. DE C.V., manifestando que realizara su mejor esfuerzo
para cumplir cabalmente con sus obligaciones en tal caracter, y acto seguido
exhibio en dinero efectivo cien nuevos pesos, moneda nacional, como garantia de
su gestion, dando asi cumplimiento a lo dispuesto en el articulo XIV de los
actuales estatutos sociales de DISTRIBUIDORA VENUS, S.A. DE C.V.
PUNTO SIETE. En relacion con este septimo punto del Orden del Dia,
el Presidente de la Asamblea comentar a los presentes la conveniencia de
designar al senor Julio Pedro Cepeda Rebollo como Director General de la
sociead, quien para el desempeno de sus funciones habra de ser investido de
poderes idoneos.
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Despues de comentar sobre la propuesta del Presidente, la Asamblea,
por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. Con efectos a partir del 4 de julio de 1994 se
designa al senor Julio Pedro Cepeda Rebollo Director General de DISTRIBUIDORA
VENUS, S.A. DE C.V., quien como garantia de su gestion deposito en la caja de la
sociedad, la cantidad de cien nuevos pesos, moneda nacional, y para el desempeno
de sus funciones gozara del poder general de la sociedad para:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la ley, sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion, estando por lo tanto facultado para desistirse aun
del juicio de amparo; formular querellas y denuncias penales y otorgar
perdon, cuando este proceda; transigir; comprometer en arbitros; absolver
y articular posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la ley, entre los que se incluye
representar a la sociedad ante toda clase de autoridades y tribunales,
sean penales, civiles, administrativos o del trabajo;
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b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la Federacion;
c) La realizacion de actos que involucren las mas amplias facultades
de administracion y direccion por lo que respecta a la planeacion,
organizacion, mando y control del personal de DISTRIBUIDORA VENUS, S.A. DE
C.V. y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
DISTRIBUIDORA VENUS, S.A. DE C.V. en sus relaciones con los trabajadores;
asimismo se le otorga, sin limitacion alguna, en su caracter de
representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos
del parrafo primero del articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil para el Distrito Federal y articulos correlativos de los
Codigos Civiles de las entidades que integran la Federacion. De manera
enunciativa y no limitativa se mencionan, entre otras, facultades para
representar a DISTRIBUIDORA VENUS, S.A. DE C.V.: i) ante toda clase de
autoridades administrativas y judiciales, tanto de caracter municipal como
estatal y federal, ante el Instituto del Fondo Nacional para la Vivienda
de los Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo
Nacional para el Consumo de los Trabajadores y el Sistema de Ahorro para
el
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Retiro, ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje,
tanto locales como federales, y ante las autoridades laborales a que se
refiere el articulo quinientos veintitres de le Ley Federal del Trabajo,
iii) en toda clase de procedimientos, incluyendo el del amparo, y iv)
compareciendo y actuando, de acuerdo con lo dispuesto en los articulos
once, seiscientos noventa y dos, fraccion II, ochocientos setenta y seis,
setecientos ochenta y seis, setecientos ochenta y siete y demas aplicables
de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones y en toda la secuela de los
juicios laborales en que DISTRIBUIDORA VENUS, S.A. DE C.V. sea parte o
tercera interesada;
d) Suscribir y endosar titulos de credito en nombre y representacion
de la sociedad, en terminos del articulo noveno de la Ley General de
Titulos y Operaciones de Credito, asi como abrir, operar y cerrar cuentas
de la sociedad con instituciones de bancarias e instituciones bursatiles,
tanto del pais como del extranjero, en moneda nacional y en moneda
extranjera, designando a personas autorizadas para operar dichas cuentas y
girar contra las mismas; y
e) Otorgar y revocar poderes en terminos de los parrafos a), b) y c)
que anteceden, con o sin facultades de substitucion, y revocar poderes
otorgados por la sociedad".
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"2. La designacion contenida en el parrafo resolutivo 1. anterior
queda sujeta a la condicion suspensiva de que el Instituto Nacional de Migracion
otorgue la autorizacion que procede conforme a la legislacion aplicable."
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo
precidio a agradecer a la Asamblea su designacion como Director General de
DISTRIBUIDORA VENUS, S.A. DE C.V., manifestando que realizara su mejor esfuerzo
para cumplir cabalmente con sus obligaciones en tal caracter.
PUNTO OCHO. En relacion con este punto octavo del Orden del Dia, el
Presidente de la Asamblea comento a los presentes la conveniencia de designar al
senor Sergio Rene Aparicio Gonzalez como Director de Relaciones Industriales de
la sociedad, quien para el desempeno de sus funciones habra de ser investido de
poderes idoneos. Despues de comentar sobre la propuesta del Presidente, la
Asamblea, por unanimidad de votos, adopto la siguiente.
RESOLUCION. "Con efectos a partir del 1o. de septiembre de 1994 se
designa al senor Sergio Rene Aparicio Gonzalez Director de Relaciones
Industriales de DISTRIBUIDORA VENUS, S.A. DE C.V., quien para el desempeno de
sus funciones gozara del poder general de la sociedad para:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la ley, sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo
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Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades que integran la Federacion, estando por lo tanto
facultado para desistirse aun del juicio de amparo; formular querellas y
denuncias penales y otorgar perdon, cuando proceda transigir; comprometer
en arbitros; absolver y articular posiciones; recusar jueces; recibir
pagos y ejecutar todos los demas actos expresamente autorizados por la
ley, entre los que se incluye representar a la sociedad ante toda clase de
autoridades y tribunales, sean penales, civiles, administrativos o del
trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades que integran la Federacion;
c) La realizacion de actos que involucren las mas amplias facultades
de administracion y direccion por lo que respecta a la planeacion,
organizacion, mando y control del personal de DISTRIBUIDORA VENUS, S.A. DE
C.V. y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
DISTRIBUIDORA VENUS, S.A. DE C.V. en sus relaciones con los trabajadores;
asimismo se le otorga, sin limitacion alguna, en su caracter de
representante legal, el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la ley requieran poder o clausula especial, en los terminos
del parrafo primero del articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil para el
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Distrito Federal y articulos correlativos de los Codigos Civiles de las
entidades que integran la Federacion. De manera enunciativa y no
limitativa se mencionan, entre otras, facultades para representar a
DISTRIBUIDORA VENUS, S.A. DE C.V.: i) ante toda clase de autoridades
administrativas y judiciales, tanto de caracter municipal como estatal y
federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional
para el Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro,
ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto
locales como federales, y ante las autoridades laborales a que se refiere
el articulo quinientos veintitres de la Ley Federal del Trabajo, iii) en
toda clase de procedimientos, incluyendo el del amparo, y iv)
compareciendo y actuando, de acuerdo con lo, dispuesto en los articulos
once, seiscientos noventa y dos, fraccion II, ochocientos setenta y seis,
setecientos ochenta y seis, setecientos ochenta y siete y demas aplicables
de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones y en toda la secuela de los
juicios laborales en que DISTRIBUIDORA VENUS, S.A. DE C.V. sea parte o
tercera interesada".
Estando presente en la Asamblea el senor Sergio Rene Aparicio
Gonzalez procedio a agradecer a la Asamblea su designacion como Director
de Relaciones Industriales de DISTRIBUIDORA VENUS, S.A. DE C.V.,
manifestando que
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realizara su mejor esfuerzo para cumplir cabalmente con sus obligaciones
en tal caracter.
PUNTO NUEVE. Respecto del noveno punto del Orden del Dia los
presentes coincidieron en la necesidad y conveniencia de revocar poderes
otorgados por la sociedad a personas que ya no se encuentran vinculadas
con ella, como lo es la senora Blanca Margarita Contreras Robles.
Despues de comentar sobre el asunto, la Asamblea, por unanimidad de
votos, adopto las siguientes.
RESOLUCION. "1. Se revocan y dejan sin efecto alguno todos los
poderes y autorizaciones otorgados por la sociedad en favor de la senora
Blanca Margarita Contreras Robles, en particular aquellos que se contienen
en la escritura publica 30,338 de 5 de junio de 1991 otorgada por el
licenciado Roberto Nunez y Bandera, Notario Publico 1 del Distrito
Federal".
PUNTO DIEZ. Respecto de este punto decimo del Orden del Dia el
Presidente de la Asamblea expuso a los presentes que se considera
conveniente modificar integramente los actuales estatutos sociales de
DISTRIBUIDORA VENUS, S.A. DE C.V., a fin de que en ellos se incorporen las
modificaciones que sufrio nuestra Ley General de Sociedades Mercantiles,
mismas que entraron en vigor el 11 de junio de 1992, las que permiten
mayor flexibilidad en la realizacion de actos corporativos de la empresa y
se adecuan a la actual estructura de su capital social. Indico el
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Presidente que el proyecto de nuevos estatutos sociales de DISTRIBUIDORA
VENUS, S.A. DE C.V. se hizo llegar oportunamente a los accionistas de la
sociedad para su analisis.
Los presentes coincidieron en la conveniencia de modificar
integramente los estatutos de la sociedad en los terminos del proyecto que
recibieron con oportune anticipacion los accionistas que representan, por
lo que la Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. Con efectos a partir del lo. de noviembre de 1994
se modifican integramente los estatutos sociales de DISTRIBUIDORA VENUS,
S.A. DE C.V. en los terminos del proyecto que oportunamente y con
anticipacion a la fecha de esta Asamblea fue entregado a los accionistas
de la sociedad".
"2. Al expediente de esta acta se bajo la LETRA "D", un ejemplar de
los nuevos estatutos de DISTRIBUIDORA VENUS, S.A. DE C.V. en vigor a
partir del lo. de noviembre de 1994, ejemplar que ha sido debidamente
inicialado con fines de identificacion por el Presidente y el Secretario
de esta Asamblea".
PUNTO ONCE. En relacion con este punto decimo primero del Orden del
Dia, el Presidente manifesto la necesidad de designar a la persona o
personas que, en representacion de la sociedad, habran de comparecer ante
Notario Publico para i) otorgar los poderes a que se contraen las
resoluciones adoptadas respecto de los puntos VII y VIII del Orden del Dia
de esta Asamblea, ii) protocolizar el acta que de
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esta Asamblea se levante, iii) inscribir el o los testimonios que
contengan tal protocolizacion en el Registro Publico de Comercio del
Distrito Federal, y, iv) adoptar cuanta medida o accion se requiera a
efecto de que las resoluciones adoptadas por esta Asamblea cobren pleno
vigor y surtan todos sus efectos, proponiendo se designe para tal fin a la
senorita Elisa Iglesias Alvarez y a los senores Luis Alfonso Cervantes
Muniz, Alejandro Sainz Orantes y Alejandro Nila Rosales, quienes podran
actuar conjunta o separadamente, indistintamente.
La Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. En los terminos de lo dispuesto por el articulo 10
de la Ley General de Sociedades Mercantiles se designan Delegados
Especiales de DISTRIBUIDORA VENUS, S.A. DE C.V. a quienes fungieron como
Presidente y Secretario de la Asamblea, esto es, a los senores Alejandro
Sainz Orantes y Luis Alfonso Cervantes Muniz, a efecto de que
conjuntamente comparezcan ante el Notario Publico de su eleccion a
otorgar, en representacion de DISTRIBUIDORA VENUS, S.A. DE C.V., los
poderes a que se contraen las resoluciones adoptadas respecto de los
puntos VII y VIII del Orden del Dia de esta Asamblea General Ordinaria
Anual y Extraordinaria de Accionistas, teniendose el texto de tales
poderes por aqui reproducido como si se insertase a la letra, asi como
revoquen los poderes y autorizaciones segun acuerdo contenido en la
resolucion adoptada respecto del punto IX de dicha Orden del Dia".
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"2. Se designan Delegados Especiales de DISTRIBUIDORA VENUS, S.A. DE
C.V. a la senorita Elisa Iglesias Alvarez y a los senores Luis Alfonso
Cervantes Muniz, Alejandro Sainz Orantes y Alejandro Nila Rosales, quienes
podran acutar conjunta o separademente, indistintamente, a efecto de que
comparezcan ante el Notario Publico de su eleccion a protocolizar el acta
que de esta Asamblea se levante y a efecto de que inscriban el o los
primeros testimonios correspondientes en el Registro Publico de Comercio
de esta capital en el folio mercantil 152539".
No habiendo otro asunto que tratar se suspendio la Asamblea por el
tiempo necesario para la redaccion de la presente acta, la cual fue
posteriormente leida, aprobada y firmada por todos los que en ella
intervinieron.
Se hace constar que al momento de adoptarse todas y cada una de las
resoluciones contenidas en esta acta estuvo representada y participo la
totalidad del capital de la sociedad.
Se agregan al expediente de esta acta:
d) Bajo la LETRA "D", el texto de los estatutos sociales de
DISTRIBUIDORA VENUS, S.A. DE C.V. en vigor a partir del lo. de noviembre
de 1994.
Se levanto la Asamblea a las 14:00 horas del lo. de agosto de 1994.
Una firma.
Alejandro Sainz Orantes en representacion de Jafra Cosmetics, S.A.
de C.V. y de Plumibol, S.A. de C.V.
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Presidente.
Una firma.
Luis Alfonso Cervantes Muniz.
Secretario.
Una firma.
Alejandro Nila Rosales, en representacion de Calzada Mariano
Escobedo 151-155, S.A. de C.V., de Braun de Mexico y Compania, de C.V. y de
Oral-B Laboratorios, S.A. de C.V.
Una firma.
Julio Pedro Cepeda Rebollo.
Una firma.
Sergio Rene Aparicio Gonzalez.
Una firma.
Fernando Holguin Maillard.
Comisario."
V. AUTORIZACION DEL INSTITUTO NACIONAL DE MIGRACION. Los
comparecientes me exhiben el oficio marcado con el folio numero doce mil
doscientos siete, fechado el primero de junio de mil novecientos noventa y
cuatro, expedido por el Departamento de Inmigrantes "B", del Instituto Nacional
de Migracion de la Secretaria de Gobernacion, mediante el cual se autoriza que
se documente al senor JULIO PEDRO
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CEPEDA REBOLLO, en calidad Inmigrante, con el objeto de que preste sus servicios
como Administrador Unico de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, documento que en fotocopia agrego al apendice de la presente con la
letra "A" y en una foja util.
EXPUESTO LO ANTERIOR, LOS COMPARECIENTES FORMALIZAN LO QUE SE
CONTIENE EN LAS SIGUIENTES:
CLAUSULAS
PROTOCOLIZACION PARCIAL
PRIMERA. A solicitud de los senores Licenciados LUIS ALFONSO
CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, en su caracter de Delegados
Especiales de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en
cumplimiento del acuerdo respectivo, queda PROTOCOLIZADA en la presente, en su
parte transcrita el acta de la Asamblea General Ordinaria Anual y
Extraordinaria, celebrada por los accionistas de la expresada sociedad, el dia
primero de agosto de mil novecientos noventa y cuatro, que aparece relacionada
en el antecedente cuarto de este instrumento.
SEGUNDA. En consecuencia, se tienen por formalizados los siguientes
acuerdos:
A) Por aceptada, con efectos a partir del cuatro de julio de mil
novecientos noventa y cuatro, la renuncia presentada por la senora LETICIA
NAVARRO
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OCHOA, al cargo de Administradora Unica de "DISTRIBUIDORA VENUS", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE.
B) Por designado, con efectos a partir del cuatro de julio de mil
novecientos noventa y cuatro, Administrador Unico de "DISTRIBUIDORA
VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el senor JULIO PEDRO CEPEDA
REBOLLO, quien en el desempeno de su cargo gozara de todas las facultades
que la Ley concede a los de su clase y muy especialmente de las senaladas
en los Estatutos Sociales.
C) Por ratificados los senores Licenciado LUIS ALFONSO CERVANTES
MUNIZ, FERNANDO HOLGUIN MAILLARD y EDUARDO RODRIGUEZ ISLAS, como
Administrador Unico Suplente, Comisario Propietario y Comisario Suplente,
respectivamente, de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE.
D) Sujeta a la CONDICION SUSPENSIVA de que se obtenga la
correspondiente autorizacion del Instituto Nacional de Migracion, con
efectos a partir del cuatro de julio de mil novecientos noventa y cuatro,
por designado como Director General de 'DISTRIBUIDORA VENUS", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, el senor JULIO PEDRO CEPEDA REBOLLO.
E) Por designado como Director de Relaciones Industriales de
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL
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VARIABLE, el senor SERGIO RENE APARICIO GONZALEZ, dicho nombra miento con
efectos a partir del primero de septiembre de mil novecientos noventa y
cuatro.
F) Con efectos a partir del primero de noviembre de mil novecientos
noventa y cuatro, por modificados integramente los Estatutos Sociales de
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
G) Por revocados todos los poderes y autorizaciones otorgados por
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en favor de
la senora BLANCA MARGARITA CONTRERAS ROBLES.
H) Por designados como Delegados Especiales de la expresada
Sociedad, la senorita ELISA IGLESIAS ALVAREZ y los senores LUIS ALFONSO
CERVANTES MUNIZ, ALEJANDRO SAINZ ORANTES y ALEJANDRO NILA ROSALES, quienes
gozaran de las facultades contenidas en el acta que ha sido Protocolizada
Parcialmente, mismas que se tienen aqui por reproducidos como si se
insertasen a la letra.
PROTOCOLIZACION
TERCERA. A solicitud de los senores Licenciados LUIS ALFONSO
CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, en su caracter de Delegados
Especiales de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE
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CAPITAL VARIABLE, quedan PROTOCOLIZADOS en la presente, los nuevos Estatutos
Sociales de la expresada sociedad, mismos que en doce fojas utilizadas
unicamente por el anverso, agrego al apendice de esta escritura con la letra
"B".
OTORGAMIENTO DE PODERES GENERALES
CUARTA. "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada como se ha dicho por sus Delegados Especiales, en cumplimiento del
acuerdo contenido en el acta que ha quedado Parcialmente Protocolizada en esta
escritura, OTORGA al senor JULIO PEDRO CEPEDA REBOLLO, para el desempeno de su
cargo de Director General de la expresada Sociedad, PODER GENERAL para:
A) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las Entidades Federativas
que integran la Federacion, estando por lo tanto facultado para desistirse
aun del juicio de amparo; formular querellas y denuncias penales y otorgar
perdon, cuando este proceda; transigir; comprometer en arbitros; absolver
y articular posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la Ley, entre los que se incluye
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representar a la Sociedad ante toda clase de Autoridades y Tribunales,
sean Penales, Civiles, Administrativos o del Trabajo;
B) ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
Entidades que integran la Federacion;
C) LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS FACULTADES
DE ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion,
organizacion, mando y control del personal de "DISTRIBUIDORA VENUS",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE y, en consecuencia, por ministerio
del articulo once de la Ley Federal del Trabajo, habra de tener el
caracter de representante legal de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, en sus relaciones con los trabajadores; asimismo se
le otorga, sin limitacion alguna, en su caracter de representante legal,
el poder general de la sociedad para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la ley
requieran poder o clausula especial, en los terminos del parrafo primero
del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
Entidades que integran la Federacion. De manera enunciativa y no
limitativa se mencionan entre otras,
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facultades para representar a "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE: i) Ante toda clase de Autoridades Administrativas y
Judiciales, tanto de caracter municipal como Estatal y Federal, ante el
Instituto del Fondo Nacional para la Vivienda de los Trabajadores, el
Instituto Mexicano del Seguro Social, el Fondo Nacional para el Consumo de
los Trabajadores y el Sistema de Ahorro para el Retiro, ii) Ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto Locales como
Federales, y ante las Autoridades Laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) En toda clase de
procedimientos, incluyendo el del amparo, y iv) Compareciendo y actuando,
de acuerdo con lo dispuesto en los articulos once, seiscientos noventa y
dos, fraccion dos (romano), ochocientos setenta y seis, setecientos
ochenta y seis, setecientos ochenta y siete y demas aplicables de la Ley
Federal del Trabajo, en la etapa conciliatoria, en la articulacion y
absolucion de posiciones y en toda la secuela de los juicios laborales en
que "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, sea parte
o tercera interesada;
D) SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y representacion
de la Sociedad, en terminos del articulo noveno de la Ley General de
Titulos y Operaciones de Credito, asi como abrir, operar y cerrar cuentas
de la Sociedad con Instituciones Bancarias e Instituciones Bursatiles,
tanto del pais como
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del extranjero, en moneda nacional y en moneda extranjera, designando a
personas autorizadas para operar dichas cuentas y girar contra las mismas;
y
E) OTORGAR Y REVOCAR PODERES en terminos de los parrafos A), B), y
C) que anteceden, con o sin facultades de substitucion, y revocar poderes
otorgados por la Sociedad.
QUINTA. "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada como se ha dicho por sus Delegados Especiales, en cumplimiento del
acuerdo contenido en el acta que ha quedado parcialmente protocolizada en esta
escritura, OTORGA al senor SERGIO RENE APARICIO GONZALEZ, para el desempeno de
su cargo como Director de Relaciones Industriales de la expresada Sociedad,
PODER GENERAL para:
A) PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme la Ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las Entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo;
formular querellas y denucias penales y otorgar perdon, cuando este proceda;
transigir; comprometer en arbitros; absolver y articuler posiciones; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la
33
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Ley, entre los que se incluye representar a la Sociedad ante toda clase de
Autoridades y Tribunales, sean Penales Civiles, Administrativos o del Trabajo;
B) ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos de los Codigos Civiles de las Entidades que
integran la Federacion; y
C) LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS FACULTADES
DE ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion, organizacion,
mando y control del personal de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones
con los trabajadores; asimismo se le otorga, sin limitacion alguna, en su
caracter de representante legal el poder general de la sociedad para pleitos y
cobranzas, con todas las facultades generales y aun las especiales que de
acuerdo con la Ley requiren poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civales
de las Entidades que integran la Federacion. De manera enunciativa y no
limitativa se mencionan entre otras, facultades para representar a
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE: i) Ante toda clase
de Autoridades
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Administrativas y Judiciales, tanto de caracter municipal como Estatel y
Federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituo Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) Ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto Locales como
Federales, y ante las Autoridades Laborales a que se refiere el articulo
quiniento veintitres de la Ley Federal del Trabajo, iii) En toda clase de
procedimientos, incluyendo el del amparo, y iv) Compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion dos (romano), ochocientos setenta y seis, setecientos ochenta y sies,
setecientos ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en
la etapa conciliatoria, en la articulacion y absolucion de posiciones y en toda
la secuela de los juicios laborales en que "DISTRIBUIDORA VENUS", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, sea parte o tercera interesada.
REVOCACION DE PODER ESPECIAL
SEXTA. "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada como se ha dicho, por sus Delegados Especiales, los senores
Licenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, en
cumplimiento del acuerdo respectivo, REVOCA EN TODAS Y CADA UNA DE SUS PARTES,
el PODER ESPECIAL, otorgado a la senora BLANCA MARGARITA CONTRERAS ROBLES, en la
escritura numero treinta mil trescientos
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treinta y ocho, de fecha cinco de junio de mil novecientos noventa y uno,
otorgada ante el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno
del Distrito Federal, instrumento que se relaciona en el antecedente segundo de
la presente.
CLAUSULAS COMUNES
SEPTIMA. Los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, en su citado caracter de Delegados Especiales de
"DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, liberan al suscrito
Notario de la obligacion de inscribir el primer testimonio de esta escritura, en
el Registro Publico de la Propiedad y de Comercio del Distrito Federal, siendo
por cuenta de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, todos
los gastos, derechos y honorarios que dicho tramite origine.
OCTAVA. Los gastos y honorarios que esta escritura origine, seran
por cuenta de "DISTRIBUIDORA VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifiestan los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, bajo protesta de decir verdad y advertidos previamente
de las penas en que incurren quienes declaran con falsedad ante Notario, que:
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A) Las firmas que aparecen al final del acta Parcialmente
Protocolizada, corresponden a las personas que se les atribuyen.
B) Los funcionarios designados han aceptado los cargos conferidos y
caucionado debidamente su manejo.
C) De acuerdo con lo senalado en el articulo dos mil quinientos
noventa y ocho del Codigo Civil para el Distrito Federal, ya se le han
solicitado a la senora BLANCA MARGARITA CONTRERAS ROBLES, la devolucion de los
instrumentos en donde consta el Poder Especial revocado, y todos los documentos
relativos a los negacios, que con motivo del mismo poder tuvo a su cargo.
D) LA PERSONALIDAD que ostentan no les ha sido revocada ni en forma
alguna limitada, y acreditan la misma asi como la legal constitucion de su
representada, con los documentos relacionados en los antecedentes de la
presente.
POR SUS GENERALES, los comparecientes declaran ser mexicanos por
nacimiento; el senor ALEJANDRO SAINZ ORANTES, originario del Distrito Federal,
nacio el doce de abril de mil novecientos setenta, soltero, Licenciado en
Derecho, con domicilio en la calle Campos Eliseos numero trescientos cuarenta y
cinco, tercer piso, colonia Chapultepec Polanco, Delegacion Miguel Hidalgo del
Distrito Federal, se identifica con su licencia para conducir tipo "A", numero
"NVA" un millon ciento setenta y tres mil tresciento setenta y seis, expedida el
veinticuatro de febrero de mil novecientos noventa y tres, por el modulo quince
de la entonces Secretaria General de Proteccion y
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Vialidad del Departamento del Distrito Federal; el senor Licenciado LUIS ALFONSO
CERVANTES MUNIZ, originario del Distrito Federal, nacio el dieciseis de
noviembre de mil novecientos cincuenta y cinco, casado, Licenciado en Derecho,
con el mismo domicilio que el anterior y quien es de mi personal conocimiento.
FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el
Notario; lo relacionado e inserto concuerda con sus originales a que me remito;
los comparecientes a quienes explique ampliamente el valor y las consecuencias
legales de esta escritura, me son conocidos y tienen capacidad legal; la misma
les fue leida y conformes con ella la firman el dia de su fecha, en que desde
luego AUTORIZO. DOY FE.
LUIS ALFONSO CERVANTES MUNIZ. Firma. ALEJANDRO SAINZ ORANTES. Firma. CARLOS
ANTONIO REA FIELD. Firma. El sello de autorizar.
NOTAS COMPLEMENTARIAS
NOTA PRIMERA. Mexico, Distrito Federal a veintiocho de abril de mil
novecientos noventa y cinco. Con esta fecha agrego al apendice en una foja util
y con la letra "C", el aviso que di al Registro Nacional de Inversiones
Extranjeras, conforme al articulo treinta y cuatro de la Ley de Inversion
Extranjera. DOY FE. CARLOS ANTONIO REA FIELD. Rubrica.
NOTA SEGUNDA. Mexico, Distrito Federal, a veintiocho de abril de mil
novecientos noventa y cinco. Con esta fecha comunique al senor Licenciado
Roberto
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Nunez y Bandera, titular de la Notaria uno del Distrito Federal, LA REVOCACION
DEL PODER ESPECIAL a la senora BLANCA MARGARITA CONTRERAS ROBLES, contenida en
el presente instrumento. Agrego copia del correspondiente aviso, al apendice de
esta escritura, en dos fojas utiles y con la letra "D". DOY FE. CARLOS ANTONIO
REA FIELD. Rubrica.
INSERCION DEL ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL
CODIGO CIVIL PARA EL DISTRITO FEDERAL.
"ART. 2554. En todos los poderes generales para pleitos y cobranzas
bastara que se diga que se otorga con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, para que se
entiendan conferidos sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar
que se dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que
se den con ese caracter para que el apoderado tenga todas las facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mentionados,
las facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los notarios insertaran este articulo en los testimonios de los
poderes que otorguen."
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ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA "DISTRIBUIDORA
VENUS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A SU SOLICITUD. VA EN QUINCE FOJAS
UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS. DOY FE. MEXICO, DISTRITO FEDERAL A
VEINTIOCHO DE ABRIL DE MIL NOVECIENTOS NOVENTA Y CINCO.
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DISTRIBUIDORA VENUS, S.A. DE C.V.
ESTATUTOS
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO I. La denominacion de la sociedad es "DISTRIBUIDORA VENUS"
y debera ir siempre seguida de las palabras "sociedad anonima de capital
variable", o de su abreviatura "S.A. de C.V.".
ARTICULO II. El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucursales en cualquier otra
parte de la Republica Mexicana o del extranjero y someterse a domicilios
convencionales.
ARTICULO III. La sociedad tendra por objeto:
1) El ejercicio del comercio en general, incluyendo la manufactura,
comercio y distribucion de toda clase de articulos para el cuidado e higiene
personal, para la salud y la belleza, productos de tocador, perfumes y
cosmeticos, ornamentos personales y articulos de joyeria;
2) Fabricar, exportar, importar, adquirir, enajenar, arrendar,
subarrendar, dar y tomar en comodato, todo tipo de mercaderias, equipos,
maquinaria, implementos y efectos necesarios para realizer las actividades
descritas en el parrafo 1) que antecede;
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3) Adquirir acciones, partes sociales, certificados de participacion
y constancias de interes que acrediten inversion en cualquier tipo de empresas,
sociedades, organizaciones y asociaciones;
4) Vender, transferir, entregar y en cualquier otra forma permitida
por la ley negociar con acciones, partes sociales, certificados de participacion
y constancias de interes que acrediten inversion en cualquier tipo de empresas,
sociedades, organizaciones y asociaciones;
5) Recibir de ostras sociedades y personas, asi como proporcionar a
otras sociedades y a personas todo tipo de servicios que se requieran para
lograr sus objetos sociales, tales como servicios administrativos, financieros,
legales, de mercadeo y de tesoreria, incluyendo la preparacion de reportes y
estados financieros, presupuestos, programas y manuales de operacion, asi como
la evaluacion de resultados operacionales, evaluacion de productividad y
posibilidades de financiamiento, incluyendo analisis de disponibilidad de
capital;
6) Establecer, arrendar, subarrendar, operar y poseer en cualquier
forma permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas,
almacenes, tiendas y demas establecimientos necesarios para la realizacion del
objeto social, asi como adquirir y enajenar toda clase de negociaciones
industriales y comerciales, incluyendo acciones, participaciones e instrumentos
por ellas emitidos;
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7) Solicitar, obtener, registrar, comprar, utilizar, ceder o en
cualquier otra forma disponer y adquirir marcas, nombres comerciales, derechos
de autor, patentes, invenciones y procesos;
8) Establecer sucursales, subsidiarias, agencias y oficinas de
representacion en Mexico y en el extranjero;
9) Representar y actuar como agente, en la Repubica Mexicana y en el
extranjero, de empresas industriales y comerciales, sean nacionales o
extranjeras;
10) Adquirir, poseer, arrendar, subarrendar, comprar, vender y
negociar en cualquier otra forma permitida por la ley con bienes inmuebles,
incluyendo la adquisicion, establecimiento y operacion de laboratorios de
investigacion;
11) Proporcionar toda clase de servicios tecnicos, administrativos
de asesoria y de supervision a empresas industriales y comerciales, tanto en
Mexico como en al extranjero, y recibir dichos servicios;
12) Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales;
13) Dar y tomar dinero en prestamo con o sin garantias de cualquier
tipo, emitir bonos, obligaciones y demas titulos de credito, con la supervision
e intervencion de las insituciones que en cada caso se requiera de acuerdo con
la ley;
14) Garantizar obligaciones de terceros; y
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15) En general, realizar toda clase de actos y celebrar toda clase
de contratos, sean civiles o mercantiles, permitidos por la ley.
ARTICULO IV. La sociedad tendra duracion de noventa y nueve anos
contados a partir de la fecha de su constitucion.
ARTICULO V. El capital social es variable. El capital fijo sin
derecho a retiro es de N$10,000.00 M.N. (diez mil nuevos pesos 00/100, moneda
nacional), representado por 10,000 (diez mil) acciones ordinarias, nominativas,
Serie "A", con valor nominal de N$1.00 M.N. (un nuevo peso 00/100, moneda
nacional) cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de
la parte fija del capital social.
Corresponderan a la Serie "B" aquellas acciones representativas de
la parte variable del capital social.
En todo caso, la participacion de la inversion extranjera en el
capital de la sociedad habra de sujetarse a las disposiciones aplicables de la
Ley de Inversion Extranjera y su Reglamento.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitos establecidos
en el articulo ciento veinticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas acciones y estaran firmados por dos miembros del
Consejo de Administracion o por el Administrador Unico, segun sea el caso.
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ARTICULO VI. Cada aumento o reduccion del capital social fijo sera
decretado por Asamblea General Extraordinaria de Accionistas. Cada aumento o
reduccion del capital social en la parte variable sera decretado por Asamblea
General Ordinaria de Accionistas.
En los terminos del articulo ciento treinta y dos de la Ley General
de Sociedades Mercantiles, en el caso de aumento de capital los accionistas
tendran derecho preferente para suscribir las acciones representativas del
aumento en proporcion al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales de Accionistas en las
que se acuerde aumento de capital seran publicadas en el Diario Oficial de la
Federacion. Ademas, las mencionadas resoluciones se notificaran a los
accionistas por medio de cartas que se enviaran por correo certificado con
anterioridad a la fecha de su publicacion, a las direcciones que aparezcan
inscritas en el Libro de Registro de Acciones de la sociedad. En caso de que
existan accionistas domiciliados en el extranjero, dichas cartas se enviaran por
correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes
mencionado dentro de los quince dias de calendario siguientes a la feche de
publicacion de la resolucion. Sin embargo, si la totalidad del capital social
estuviere representado en alguna Asamblea que decretase incremento de capital,
el periodo de quince dias de calendario se computara a partir de la fecha de la
Asamblea correspondiente y los accionistas se daran por
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notificados de la resolucion desde la fecha de la Asamblea, por lo que la
publicacion y notificacion de la resolucion de incremento de capital no sera
necesarias.
ARTICULO VII. La sociedad podra adquirir las acciones representivas
de su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extraordinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asambleas General Extraodinaria de Accionistas o, por delegacion
especifica de esta, el Consejo de Administracion, sujetandose al monto maximo de
utilidades repartibles que habra de ser fijado por la propia Asamblea. Los
titulos de las acciones amortizadas quedaran exinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Adminstracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de los mismos; podran ser reelectos y recibiran las
remuneraciones que determine la Asamblea de Accionistas.
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ARTICULO IX. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerza el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
ARTICULO X. El Consejo de Administracion o el Administrador Unico,
en su caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las
facultades generales y las especiales que requieran de clausula especial de
acuerdo con la ley, sin limitacion alguna, de conformidad con lo dispuesto por
el primer paraffo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos, estando por lo
tanto facultado para desistirse de procedimientos, aun del juicio de ampara;
formular querellas y denuncias penales y desistirse de ellas; coadyuvar con el
Ministerio Publico y otorgar perdon; transigir; someterse a arbitraje; formular
y absolver posiciones; recusar jueces; recibir pagos y ejecutar todos los demas
actos expresamente autorizados por la ley, entre los que se incluye representer
a la sociedad
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ante autoridades y tribunales penales, civiles, administrativos y del trabajo;
2. Administrar bienes de acuerdo con lo dispuesto por el segundo parrafo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades
federativas de los Estados Unidos Mexicans; 3. Ejecutar actos de dominio de
acuerdo con lo previsto en el tercer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigo Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 4. Suscribir titulos de credito de conformidad con el articulo
noveno de la Ley General de Titulos y Operaciones de Credito; 5. Abrir, operar y
cerrar cuentas bancarias a nombre de la sociedad, en el pais y en el extranjero,
en moneda nacional y en moneda extranjera, y designar a las personas que puedan
girar contra las mismas; 6. Nombrar y remover al director general y demas
directores, gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades; 7. Formular reglamentos
interiores de trabajo; 8. Convocar Asambleas de Accionistas y ejecutar sus
resoluciones; 9. Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; y 10. Conferir poderes generales y
especiales en los terminos de los parrafos uno, dos, tres, cuatro y cinco
anteriores, con o sin facultades de substitucion, asi como revocar los poderes
que hubieren sido otorgados por la sociedad.
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ARTICULO XI. Cuando la sociedad sea administrada por organo
colegiado el Presidente y el Secretario del Consejo de Administracion seran
designados por la Asamblea de Accionistas o por el Consejo de Administracion, y
tendran las facultades que se les otorguen al ser designados. El Secretario
podra ser o no miembro del Consejo.
ARTICULO XII. Para que las sesiones del Consejo de Administracion
sean validas se requerira, en todo caso, las asistencia de la mayoria de sus
miembros o de sus respectivos suplentes. El Consejo de Administracion adoptara
sus resoluciones por mayoria de votos de los miembros presentes en cada Sesion.
Conforme a lo previsto en el articulo 143 de la Ley General de
Sociedades Mercantiles, los miembros del Consejo de Administracion podran
adoptar validamente resoluciones sin estar reunidos en formal Sesion, siempre
que tales resoluciones se confirmen por escrito por todos los miembros del
Consejo de Administracion. En todo caso sera responsabilidad de quien desempene
el cargo de Secretario del Consejo de Administracion de cerciorarse de la
autenticidad de tales escritos, de su formalizacion y de su conservacion.
ARTICULO XIII. El Presidente no tendra voto de calidad en caso de
empate. Si el Presidente o el Secretario no asisten a la Sesion, el cargo
respectivo, para efectos de la Sesion, sera ocupado por el Consejero designado
por mayoria de votos de los miembros presentes. Las actas de Sesiones del
Consejo seran transcritas en un libro especialmente autorizado y seran firmadas
por quienes actuen como Presidente y
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Secretario de cada Sesion, asi como por cualquier Consejero que asistiere y
deseare hacerlo.
ARTICULO XIV. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los Consejeros y sus respectivos Suplentes,
al tomar posesion, depositaran con la sociedad la cantidad de N$100.00 M.N.
(cien nuevos pesos 00/100, moneda nacional) cada uno, o, a su eleccion,
exhibiran poliza de fianza otorgada por compania autorizada por igual suma. Los
Consejeros o el Adminstrador Unico, segun sea el caso, no podran retirar las
garantias otorgadas hasta que su gestion haya sido aprobada por Asamblea de
Accionistas. Los directores y demas funcionarios de la sociedad otorgaran las
garantias que determine la Asamblea de Accionistas o el Consejo de
Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO XV. La vigilancia de la sociedad estara encomendada a uno o
dos Comisarios, segun lo determine la Asamblea de Accionistas. Si la Asamblea lo
considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
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ARTICULO XVII. Los Comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
ARTICULO XVIII. Los Comisarios otorgaran las garantias senaladas en
el articulo XIV de estos estatutos para los Consejeros, y solo podran retirarlas
cuando su gestion haya sido aprobada por Asamblea de Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO XIX. Las Asambleas de Accionistas se celebraran en el
domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas para
tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y dos
de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias.
ARTICULO XX. Las convocatorias para Asambleas de Accionistes deberan
ser expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o, en la medida en que los permita
la ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos el treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen a
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco
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de la Ley General de Sociedades Mercantiles. Si el Administrador Unico o el
Presidente o el Secretario del Consejo de Administracion, segun sea el caso, o
los Comisarios, no expidieren la convocatoria dentro de los quince dias
siguientes a la fecha de la solicitud, un Juez de lo Civil o de Distrito del
domicilio de la sociedad hara la convocatoria a peticion de cualquier accionista
interesado, debiendo exhibir sus acciones para tal efecto, de conformidad con lo
previsto por la Ley.
ARTICULO XXI. Las convocatorias para Asambleas se publicaran en el
Diario Oficial de la Federacion con por lo menos quince dias de anticipacion a
la fecha fijada para la Asamblea. Ademas, las convocatorias se notificaran por
carta a los accionistas, que se enviaran por correo certificado, con
anterioridad a la fecha de publicacion de la convocatoria a las direcciones que
aparezcan en el Libro de Registro de Acciones de la sociedad. Tratandose de
accionistas domiciliados en el extranjero, dichas cartas se enviaran por correo
aereo certificado. Las convocatorias contendran el Orden del Dia y estaran
firmadas por quien las expida.
ARTICULO XXII. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social estra representado en su
totalidad y participa al momento de la votacion.
ARTICULO XXIII. Solo los accionistas que aparezcan inscritos en el
Libro de Registro de Acciones de la sociedad como titulares de una o mas
acciones seran admitidos en Asambleas.
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ARTICULO XXIV. Los accionistas podran ser representados en Asambleas
por la persona o personas que designen mediante carta poder firmada ante dos
testigos, o por cualquier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV. Las actes de Asambleas se transcribiran a un libro
especialemente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO XXVI. Las Asambleas seran presididas por el Administrador
Unico o por el Presidente del Consejo de Administracion, segun sea el caso. Sin
embargo, en caso de que quien desempene alguno de los cargos mencionados
estuviere ausente, la Asamblea en cuestion sera presidida por la persona que se
designe por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO XXVII. Las Asambleas Ordinarias se celebraran cuando menos
una vez al ano dentro de los cuatro meses siguientes al cierre de cada ejercicio
social. Ademas de los asuntos especificados en el Orden del Dia, la Asamblea
Ordinaria Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluva los informes y estados financieros a que se refiere
el enunciado general del articulo ciento setenta y dos de la Ley General de
Sociedades Mercantiles, tomando en
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cuenta el informe del Comisario o Comisarios, y adoptar las medidas que juzgue
oportunas; designar al Administrador Unico o a los miembros del Consejo de
Administracion, segun sea el caso, y al Comisario o Comisarios, asi como
determinar las remunercaciones al Administrador Unico o a los miembros del
Consejo de Administracion y a los Comisarios.
ARTICULO XXVIII. Para que sean validas las Asambleas Ordinarias de
Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia e, por lo menus, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO XXIX. Para que sean validas las Asambleas Extraordinarias
de Accionistas celebradas en virtud de primera convocatoria, deberan reunir, por
lo menos, la presencia del sesenta y cinco por ciento de las acciones
representativas del capital social. En caso de segunda o ulterior convocatoria,
la Asamblea se considerara legalmente instalada si estuviere presente, cuando
menos, el cincuenta por ciento de las acciones representativas del capital
social.
ARTICULO XXX. Tratandose de Asambleas Ordinarias, las resoluciones
en ellas adoptadas seran validas cuando se emita voto favorable por la mayoria
de las acciones presentes, siempre y cuando hubiere existido quorum de presencia
en los terminos del articulo XXVIII de los estatutos sociales.
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En el caso de Asambleas Extraordinarias, sus resoluciones seran
validas cuando sean adoptadas por el voto favorable de las acciones que
representen, cuando menos, el cincuenta por ciento de las acciones que integren
el capital social.
ARTICULO XXXI. Conforme a lo dispuesto en el articulo 178 de la Ley
General de Sociedades Mercantiles, podran validamente los accionistas adoptar
resoluciones sin la celebracion de Asamblea, siempre y cuando tales resoluciones
consten por escrito firmado por todos los accionistas titulares de la totalidad
de las acciones con derecho a voto representativas del capital de la sociedad.
En todo caso sera responsabilidad de quien desempene el cargo de Secretario del
Consejo de Administracion cerciorarse de la autenticidad de tales escritos, de
su formalizacion y de su conservacion.
INFORMACION FINANCIERA
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de
cada ejercicio social, el Administrador Unico o el Consejo de Administracion, en
su caso, formulara los siguientes estados financieros, los que deberan contener
toda la informacion que sea necesaria para reflejar el estado que guarda la
situacion financier y operativa de la sociedad, en terminos del enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
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b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
ARTICULO XXXIII. Los estados financieros, junto con los documentos
justificativos, deberan ser entregados al Comisario o Comisarios con un mes de
anticipacion, cuando menos, a la fecha fijada para la Asamblea General Anual
Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO XXXIV. Dentro de los quince dias siguientes a la fecha en
que les hayan sido entregados los estados financieros, los Comisarios deberan
entregar al Administrador Unico o al Consejo de Administracion, segun sea el
caso, un informe para los accionistas respecto de la veracidad, suficiencia y
razonabilidad de la informacion que les haya sido presentada por en Consejo de
Administracion o por el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, a disposicion de los accionistas,
para su revision,
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por los menos durante los quince dias anteriores a la fecha senalada para la
Asamblea General Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse
publicar y depositar en la forma y terminos previstos en el articulo ciento
setenta y siete de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV. Las utilidades netas de cada ejercicio social seran
distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstitur, el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por cieno del capital social; y
2) El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO XXXV. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva y, si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada al
pago dsel valor nominal de sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO XXXVII. La sociedad se disolvera en cualquiera de los
supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra en
liquidacion. La
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liquidacion se encomendara a uno o mas liquidadores designados por Asamblea
Extraordinaria de Accionistas. Si la Asamblea no hiciera la designacion
correspondiente la hara un Juez de lo Civil o de Distrito del domicilio de la
sociedad a solicitud de cualqueir accionista.
ARTICULO XXXVIII. En ausencia de instrucciones expresas en contrario
dadas a los liquidadores por la Asamblea, la liquidacion se llevara a cabo de
acuerdo con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance final de liquidacion; y
5) Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion a su participacion en el capital social.
DISPOSICIONES GENERALES
ARTICULO XXXIX. Los socios fundadores, como tales, no se reservan
participacion alguna.
ARTICULO XL. Todo extranjero que en el acto de la constitucion o en
cualquier tiempo ulterior adquiera un interes o participacion social en la
sociedad se considerara por ese solo hecho como mexicano respecto de uno y otra,
y se entendera que
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conviene en no invocar la proteccion de su gobierno, bajo la pena, en caso de
faltar a su convenio, de perder dicho interes o participacion en beneficio de la
Nacion Mexicana.
ALFONSO GONZALEZ ALONSO, notario treinta y uno del Distrito Federal,
C E R T I F I C A: Que la presente copia fotostatica, que consta de veintitres
fojas, impresas por ambos lados, con excepcion de la primera y la diecisiete, es
fiel reproduccion de su original (de la uno a la dieciseis), de la a su vez
copia fotostatica con medio sello impreso al extremo inferior izquierdo en
original (la diecisiete) y de la a su vez copia certificada (de la dieciocho a
la veintitres), que tuvo a la vista y con las cuales la cotejo, levantando para
constancia el registro numero mil novecientos setenta y dos, en el libro de
registro de cotejos del protocolo de la notaria a su cargo.
Mexico, Distrito Federal, a veintitres de abril de mil novecientos
noventa y ocho.
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EXHIBIT 3.8(A)
LIC. ROBERTO NUNEZ Y BANDERA
NOTARIA No. 1, MEXICO, D.F.
INSTRUMENTO NUMERO
VEINTINUEVE MIL SEISCIENTOS DIEZ
En la Ciudad de Mexico, Distrito Federal, a los dos dias del mes de
enero de mil novecientos noventa y uno, ROBERTO NUNEZ Y BANDERA, Notario en
Ejercicio, Titular de la Notaria numero Uno de este Distrito, hago constar:
El CONTRATO DE SOCIEDAD que otorgan JAFRA COSMETICS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, representada por la Licenciada Leticia Navarro
Ochoa, PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada por el Senor
Miguel Angel Castaneda Perez, CALZADA MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, representada por el Senor Gustavo Madrinan Micolta, BRAUN
DE MEXICO Y COMPANIA, DE CAPITAL VARIABLE, representada por el Licenciado Luis
Alfonso Cervantes Muniz, y ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, representada por el Senor Victor Manuel Rocha Duran, en los terminos
de las siguientes declaraciones y clausulas:
DECLARACIONES
I. Los comparecientes me exhiben y agrego el apendice de este
protocolo con el numero de este instrumento y letra "A", el permiso otorgado por
la Secretaria de Relaciones Exteriores, que a la letra dice:
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Un sello: ESTADOS UNIDOS MEXICANOS: SECRETARIA DE RELACIONES
EXTERIORES MEXICO. PERMISO 09064913. EXPEDIENTE 9009067821. FOLIO 135638.
En atencion a la solicitud presentada por el C. LUIS ALFONSO
CERVANTES, esta Secretaria concede el permiso para que al constituir la persona
moral solicitante se utilice la denominacion DISTRIBUIDORA VENUS SACV.
Este permiso, quedara condicionado a que en la escritura
constitutiva se inserte la clausula de exclusion de extranjeros prevista en el
Articulo 30 o el convenio que senala el Articulo 31, ambos del Reglamento de la
Ley para Promover la Inversion Mexicana y Regular la Inversion Extranjera.
El Notario Publico ante quien se protocolice este permiso, debera
dar aviso a la Secretaria de Relaciones Exteriores dentro de los 90 dias habiles
a partir de la fecha de autorizacion de la escritura sobre el uso del permiso o,
en su caso, del convenio sobre la renuncia a que se hace referencia en el
parrafo que antecede.
Lo anterior se comunica con fundamento en el articulo 27
Constitucional Fraccion I, 1 de su Ley Organica, 17 de la Ley para Promover la
Inversion Mexicana y Regular la Inversion Extranjera y en los terminos del
Articulo 28 fraccion V de la Ley Organica de la Administracion Publica Federal.
Este permiso dejara de surtir efectos ni no se hace uso del mismo
dentro de los 90 dias habiles siguientes a la fecha de su expedicion.
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Tlatelolco, D.F., a 30 de Noviembre de 1990.
SUFRAGIO EFECTIVO. NO REELECCION. EL DIRECTOR DE PERMISOS DE ART. 27
CONSTITUCIONAL. LIC. LUIS RICAUD VELASCO. (Firmado).
Esto expuesto los comparecientes otorgan:
CLAUSULA UNICA
Los comparecientes constituyen una SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, de acuerdo con la Ley General de Sociedades Mercantiles, la que se
regira por los siguientes:
ESTATUTOS
NOMBRE, DOMICILIO, OBJECTO Y DURACION
ARTICULO PRIMERO. La denominacion de la sociedad es "DISTRIBUIDORA
VENUS" y debera ir siempre seguida de las palabras sociedad anonima de capital
variable, o de su abreviatura "S.A. de C.V.".
ARTICULO SEGUNDO. El domicilio de la sociedad es el Distrito
Federal, Mexico; sin embargo, podra establecer agencias o sucursales en
cualquier otra parte de la Republica Mexicana o del extranjero y someterse a
domicilios convencionales.
ARTICULO TERCERO. La sociedad tendra por objeto:
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El ejercicio de la industria y el comercio en general y, en forma
particular, producir, elaborar, mezclar, adquirir, vender, importar, exportar,
distribuir y negociar en cualquier forma con toda clase de articulos para el
cuidado y higiene personal, para la salud y la belleza, productos de tocador,
perfumes y cosmeticos, ornamentos personales y articulos de joyeria y demas
articulos relacionados, por lo que enunciativa y no limitativamente la sociedad
podra:
1. Fabricar, procesar, comprar, vender, distribuir, importar,
exportar y, en general, negociar o comerciar en cualquier otra forma con toda
clase de mercaderias, maquinaria diversa, equipo, partes y artefactos para usos
industriales o comerciales;
2. Importar, exportar, comprar, vender, distribuir, y, en general,
negociar o industrializar toda clase de materias primas, productos terminados o
semi-terminados y articulos de comercio;
3. Prestar y recibir toda clase de servicios tecnicos,
administrativos y de supervision;
4. Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrendamiento, en comodato o en subcomodato, administrar, operar o poseer en
cualquier forma permitida por la ley fabricas, plantas industriales, talleres,
laboratorios, almacenes o bodegas, oficinas, tiendas y otros establecimientos y
bienes inmuebles como sea necesario para el logro de su objeto social;
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5. Adquirir, enajenar, importar, exportar, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes muebles;
6. Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales, derechos de
autor, patentes, invenciones y procesos, asi como disponer de ellos;
7. Actuar como contratista, subcontratista, agente o representante y
designar subcontratistas, agentes o representantes;
8. Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o mercantiles,
y formar parte de ellas;
9. Representar o ser agente o comisionista de negociaciones
comerciales o industriales nacionales o extranjeras;
10. Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito con la
intervencion de las instituciones senaladas por la ley, y otorgar fianzas o
garantias de cualquier clase respecto de obligaciones contraidas o de titulos
emitidos o aceptados por la propia sociedad o por terceros;
11. Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito; y
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12. Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ARTICULO CUARTO. La sociedad tendra una duracion de noventa y nueve
anos contados a partir de la fecha de su constitucion.
CAPITAL SOCIAL Y ACCIONES
ARTICULO QUINTO. El capital social es variable. El capital fijo sin
derecho a retiro es de DIEZ MILLONES DE PESOS, Moneda Nacional, representado por
Diez Mil acciones ordinarias, nominitivas, con valor nominal de MIL PESOS,
Moneda Nacional cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de
la parte fija del capital social que sean propriedad de personas fisicas o
morales cuya inversion se considere como mexicana en los terminos de la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera. Corresponderan
a la Serie "A-1" aquellas acciones representativas de la parte variable del
capital social que sean propriedad de personas fisicas o morales cuya inversion
se considere como mexicana en los terminos de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera.
Corresponderan a la Serie "B" aquellas acciones representativas de
la parte fija del capital social que sean propiedad de personas fisicas o
morales cuya inversion se considere como extranjera en los terminos de la Ley
para Promover la Inversion
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Mexicana y Regular la Inversion Extranjera. Corresponderan a la Serie "B-1"
aquellas acciones representativas de la parte variable del capital social que
sean propiedad de personas fisicas o morales cuya inversion se considere como
extranjera en los terminos de la Ley para Promover la Inversion Mexicana y
Regular la Inversion Extranjera.
En todo caso, la participacion de la inversion extranjera en el
capital de la sociedad habra de sujetarse a las disposiciones aplicables a la
Ley para Promover la Inversion Mexicana y Regular la Inversion Extranjera.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitos establecidos
en el articulo ciento veinticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas acciones y estaran firmados por dos miembros del
Consejo de Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO SEXTO. Cada aumento o reduccion del capital social, ya sea
que corresponda al capital fijo o a la parte variable, sera decretado por
Asamblea General Extraordinaria de Accionistas, de conformidad con lo dispuesto
por la Ley General de Sociedades Mercantiles.
En los terminos del articulo ciento treinta y dos de la Ley General
de Sociedades Mercantiles, en el caso de aumento de capital los accionistas
tendran derecho preferente para sucribir las acciones representativas del
aumento en proporcion al numero de acciones de que sean titulares.
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Las resoluciones de las Asambleas Generales Extraordinarias de
Accionistas en las que se acuerde aumento de capital seran publicadas en el
periodico oficial del domicilio de la sociedad. Ademas, las mencionadas
resoluciones se notificaran a los accionistas por medio de cartas que se
enviaran por correo certificado con anterioridad a la fecha de su publicacion, a
las direcciones que aparezcan registradas en el Libro de Registro de Acciones de
la sociedad. En caso de que existan accionistas domiciliados en el extranjero,
dichas cartas se enviaran por correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes
mencionado dentro de los quince dias de calendario siguientes a la fecha de
publicacion de la resolucion. Sin embargo, si la totalidad del capital social
estuviere representado en alguna Asamblea que decretase incremento de capital,
el periodo de quince dias de calendario se computara a partir de la fecha de la
Asamblea correspondiente y los accionistas se daran por notificados de la
resolucion desde la fecha de la Asamblea, por lo que la publicacion y
notificacion de la resolucion de incremento de capital no seran necesarias.
ARTICULO SEPTIMO. La sociedad podra adquirir las acciones
representativas de su propio capital social para su amortizacion con utilidades
repartibles mediante resolucion al efecto de la Asamblea General Extraordinaria
de Accionistas, sin disminucion del capital social. La designacion de las
acciones que hayan de ser amortizadas se hara por sorteo, en los terminos y
condiciones que disponga la Asamblea
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General Extraordinaria de Accionistas o, por delegacion especifica de esta, el
Consejo de Administracion sujetandose al monto maximo de utilidades repartibles
que habra de ser fijado por la propia Asamblea. Los titulos de las acciones
amortizadas quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO OCTAVO. La administracion de la sociedad estara confiada a
un Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de sus puestos; podran ser reelectos y recibiran
las remuneraciones que determine la Asamblea de Accionistas.
ARTICULO NOVENO. En el evento de que la sociedad sea administrada
por un Consejo de Administracion, cualquier accionista o grupo de accionistas
que represente cuando menos el veinticinco por ciento del capital social tendra
el derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerciera el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
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ARTICULO DECIMO. El Consejo de Administracion o el Administrador
Unico, en su caso, sera el representante legal de la sociedad y tendra las
siguientes facultades y obligaciones: 1. -- Ejercitar el poder para pleitos y
cobranzas, con todas las facultades generales y las especiales que requieran de
clausula especial de acuerdo con la ley, sin limitacion alguna, de conformidad
con lo dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de
los Codigos Civiles de las entidades federativas de los Estados Unidos
Mexicanos, estando por lo tanto facultado para desistirse de procedimientos, aun
del juicio de amparo, formular querellas y denuncias penales y desistirse de
ellas; coadyuvar con el Ministerio Publico y otorgar perdon; transigir;
someterse a arbitraje; formular y absolver posiciones; recusar jueces; recibir
pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penales, civiles, administrativos y del trabajo; 2. -- Administrar bienes de
acuerdo con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 3. -- Ejecutar actos de dominio de acuerdo con lo previsto en
el tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos; 4. -- Suscribir
titulos de credito de
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conformidad con el articulo noveno de la Ley General de Titulos y Operaciones de
Credito; 5. -- Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad
y designar a las personas que puedan girar contra las mismas; 6. -- Nombrar y
remover al director general y demas directores, gerentes, funcionarios y
empleados de la sociedad y determinar sus condiciones de trabajo, remuneraciones
y facultades; 7. -- Formular reglamentos interiores de trabajo; 8. -- Convocar
Asambleas de Accionistas y ejecutar sus resoluciones; 9. -- Llevar a cabo todos
los actos autorizados por estos estatutos o que sean consecuencia de los mismos;
10. -- Conferir poderes generales y especiales en los terminos de los puntos
uno, dos, tres, cuatro y cinco anteriores, con o sin facultades de substitucion,
asi como recovar los poderes que hubieren sido otorgados.
ARTICULO DECIMO PRIMERO. Cuando la sociedad sea administrada por
organo colegiado el Presidente y el Secretario del Consejo de Administracion
seran designados por la Asamblea de Accionistas o por el Consejo de
Administracion, y tendran las facultades que se les otorguen al ser designados.
El Secretario podra ser o no miembro del Consejo.
ARTICULO DECIMO SEGUNDO. Para que las sesiones del Consejo de
Administracion sean validas se requerira, en todo caso, la asistencia de la
mayoria de sus miembros o de sus respectivos suplentes. El Consejo de
Administracion adoptara sus resoluciones por mayoria de votos de los miembros
presentes en cada Sesion.
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ARTICULO DECIMO TERCERO. El Presidente no tendra voto de calidad en
caso de empate. Si el Presidente o el Secretario no asisten a la Sesion, el
cargo respectivo, para efectos de la Sesion, sera ocupado por el Consejero
designado por mayoria de votos de los miembros presentes. Las actas de Sesiones
del Consejo seran transcritas en un libro especialmente autorizado y seran
firmadas por quienes actuen como Presidente y Secretario de cada Sesion, asi
como por cualquier Consejero que asistiere y deseare hacerlo.
ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos
el Administrador Unico o, en su caso, los Consejeros y sus respectivos
Suplentes, al tomer posesion, depositaran con la sociedad la cantidad de cien
mil pesos, moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido aprobada por Asamblea de Accionistas.
Los directores y demas funcionarios de la sociedad otorgaran las garantias que
determine la Asamblea de Accionistas o el Consejo de Administracion que los
designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO DECIMO QUINTO. La vigilancia de la sociedad estara
encomendada a uno o dos Comisarios, segun lo determine la Asamblea de
Accionistas. Si la Asamblea lo considerare pertinente designara uno o dos
Comisarios Suplentes.
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ARTICULO DECIMO SEXTO. Los Comisarios no necesitan ser accionistas
de la sociedad; podran ser reelectos y desempenaran su cargo hasta que las
personas designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTIMO. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias
senaladas en el articulo decimo cuarto de estos estatutos para los Consejeros y
solo podran retiralras cuando su gestion haya sido aprobada por Asamblea de
Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO DECIMO NOVENO. Las Asambleas de Accionistas se celebraran
en el domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas
para tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y
dos de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias.
ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas
deberan ser hechas por el Administrador Unico o por el Presidente o el
Secretario del Conejo de Administracion, segun sea el caso, o, en la medida en
que lo permita la Ley, por el Comisario o Comisarios. Sin embargo, los
accionistas que
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representen cuando menos un treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen a
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco de la
Ley General de Sociedades Mercantiles. Si el Administrador Unico o el Presidente
o el Secretario del Consejo de Administracion, segun sea el caso, o los
Comisarios, no hicieren la convocatoria dentro de los quince dias siguientes a
la fecha de la solicitud, un Juez de lo Civil o de Distrito del domicilio de la
sociedad hara la convocatoria a peticion de cualquier accionista interesado,
debiendo exhibir sus acciones para tal efecto, de conformidad con lo previsto
por la ley.
ARTICULO VIGESIMO PRIMERO. Las convocatorias para Asambleas se
publicaran en el Diario Oficial de la Federacion o en el periodico oficial del
Distrito Federal, con por lo menos quince dias de anticipacion a la fecha fijada
para la Asamblea. Ademas, las convocatorias se notificaran por carta a los
accionistas, que se enviaran por correo certificado, con anterioridad a la fecha
de publicacion de la convocatoria, a las direcciones que aparezcan en el Libro
de Registro de Acciones de la sociedad. Tratandose de accionistas domiciliados
en el extranjero, dichas cartas se enviaran por
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correo aereo certificado. Las convocatorias contendran la Orden del Dia y
estaran firmadas por quien las expida.
ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin
previa publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO VIGESIMO TERCERO. Solo los accionistas que aparezcan
inscritos en el Libro de Registro de Acciones de la sociedad como titulares de
una o mas acciones, seran admitidos en Asambleas.
ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados
en Asambleas por la persona o personas que designen mediante carta poder firmada
ante dos testigos, o por cualquier otra forma de mandato conferido de acuerdo
con la ley.
ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se
transcribiran a un libro especialmente autorizado y deberan ser firmadas por las
personas que hayan fungido como Presidente y Secretario de la Asamblea, asi como
por los Comisarios presentes y por los accionistas o representantes de
accionistas que desearen firmar.
ARTICULO VIGESIMO SEXTO. Las Asambleas seran presididas por el
Administrador Unico o por el Presidente del Consejo de Administracion, segun sea
el caso. Sin embargo, en caso de que quien desempene alguno de los cargos
mencionados
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estuviere ausente, la Asamblea en cuestion sera presidida por la persona que sea
designada por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran
cuando menos una vez al ano dentro de los cuatro meses siguientes al cierre de
cada ejercicio social. Ademas de los asuntos especificados en la Orden del Dia,
la Asamblea Ordinaria Anual debera discutir, aprobar o modificar el informe del
Consejo de Administracion que incluya los informes y estados financieros a que
se refiere el enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles, tomando en cuenta el dictamen del Comisario o
Comisarios, y adoptar las medidas que juzgue oportunas; designar al
Administrador Unico a los miembros del Consejo de Administracion, segun sea el
caso, y al Comisario o Comisarios, asi como, determinar las remuneraciones al
Administrador Unico o a los miembros del Consejo de Administracion y a los
Comisarios.
ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas
Ordinarias de Accionistas celebradas en virtud de primera o ulterior
convocatoria deberan reunir la presencia de, por lo menos, el cincuenta por
ciento de las acciones representativas del capital social.
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ARTICULO VIGESIMO NOVENO. Para que sean validas las Asambleas
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan reunir, por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la Asamblea se considerara legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de los acciones representativas
del capital social.
ARTICULO TRIGESIMO. Tratandose de Asambleas Ordinarias, las
resoluciones en ellas adoptadas seran validas cuando se emita voto favorable por
la mayoria de las acciones presentes, siempre y cuando hubiere existido quorum
de presencia en los terminos del articulo vigesimo octavo de los estatutos
sociales.
ARTICULO TRIGESIMO PRIMERO. En el caso de Asambleas Extraordinarias,
sus resoluciones seran validas cuando sean adoptadas por el voto favorable de
las acciones que representen, cuando menos, el cincuenta por ciento de las
acciones que integren el capital social.
INFORMACION FINANCIERA
ARTICULO TRIGESIMO SEGUNDO. Dentro de los cuatro meses siguientes al
cierre de cada ejercicio social, el Administrador Unico o el Consejo de
Administracion, en su caso, formulara los siguientes estados financieros, los
que deberan contener toda la informacion que sea necesaria para reflejar el
estado que guarda la
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situacion financiera y operativa de la socieadad, en terminos del enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles:
(a) Estado de situacion financiera a la fecha de cierre del
ejercicio social;
(b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
(c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
(d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
(e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
ARTICULO TRIGESIMO TERCERO. Los estados financieros, junto con los
documentos justificativos, deberan ser entregados al Comisario o Comisarios con
un mes de anticipacion, cuando menos, a la fecha fijada para la Asamblea General
Anual Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO TRIGESIMO CUARTO. Dentro de los quince dias siguientes a la
fecha en que les hayan sido entregados los estados financieros, los Comisarios
deberan presentar al Administrador Unico o al Consejo de Administracion, segun
sea el caso, un informe respecto de la veracidad, suficiencia y razonabilidad de
la
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informacion que les haya sido presentada por el Consejo de Administracion o por
el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, disposicion de los accionistas,
para su revision, por lo menos durante los quince dias anteriores a la fecha
senalada para la Asamblea Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse
publicar y depositar, en la forma y terminos previstos en el articulo ciento
setenta y siete de la Ley General de Sociedades Mercantiles.
ARTICULO TRIGESIMO QUINTO. Las utilidades netas de cada ejercicio
social seran distribuidas de la siguiente manera:
1. El cinco por ciento para constituir y, si fuese necesario, para
reconstituir el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
2. El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO TRIGESIMO SEXTO. Las perdidas, si las hubiere, seran
reportadas primeramente por los fondos de reserva, y si estos fueren
insuficientes, por el capital social pagado, en el entendido de que la
responsabilidad de los accionistas en
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relacion a las obligaciones de la sociedad estara limitada unicamente hasta el
pago del valor nominal de sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO TRIGESIMO SEPTIMO. La sociedad se disolvera en cualquiera
de los supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra
en liquidacion. La liquidacion se encomienda a uno o mas liquidadores designados
por Asamblea Extraordinaria de Accionistas. Si la Asamblea no hiciere la
designacion correspondiente la hara un Juez de lo Civil o de Distrito del
domicilio de la sociedad a solicitud de cualquier accionista.
ARTICULO TRIGESIMO OCTAVO. En ausencia de instrucciones expresas en
contrario dadas a los liquidadores por la Asamblea, la liquidacion se llevara a
cabo de acuerdo con las siguientes bases generales:
1. Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas.
2. Cobro de cuentas por cobrar y pago de deudas;
3. Venta de todos los activos de la sociedad;
4. Preparacion del balance general de liquidacion;
5. Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion al numero de sus acciones.
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DISPOSICIONES GENERALES
ARTICULO TRIGESIMO NOVENO. Los socios fundadores, como tales, no se
reservan participacion alguna.
ARTICULO CUADRAGESIMO. En los terminos del articulo treinta y uno
del Reglamento de la Ley para Promover la Inversion Mexicana y Regular la
Inversion y para cumplir con la condicion a que se refiere el permiso otorgado
por la Secretaria de Relaciones Exteriores que ha sido transcrito en este
instrumento, los otorgantes se obligan formalmente a que todo extranjero que, en
el acto de la constitucion o en cualquier tiempo ulterior, adquiera un interes o
participacion social en la sociedad, se considerara por ese simple hecho como
mexicano respecto de uno y otra, asi como respecto de los bienes, derechos,
concesiones, participaciones o intereses de los que llegue a ser titular esta
sociedad, o bien de los derechos y obligaciones que deriven de los contratos en
que sea parte y por lo tanto a no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
DISPOSICIONES TRANSITORIAS
PRIMERA. Las acciones en que se divide el capital minimo de la
sociedad, han sido integramente suscritas y pagadas en la siguiente forma:
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- --------------------------------------------------------------------------------
ACCIONISTAS ACCIONES CAPITAL
- --------------------------------------------------------------------------------
JAFRA COSMETICS, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, suscribe nueve mil
novecientas noventa y seis acciones con valor
nominal de mil pesos cada una, que paga en
dinero efectivo........................... 9,996 $9,996,000.00
- --------------------------------------------------------------------------------
PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con valor
nominal de mil pesos, que paga en dinero
efectivo.................................. 1 $1,000.00
- --------------------------------------------------------------------------------
CALZADA MARIANO ESCOBEDO 151-155,
SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con valor
nominal de mil pesos, que paga en dinero
efectivo.................................. 1 $1,000.00
- --------------------------------------------------------------------------------
BRAUN DE MEXICO Y COMPANIA, DE
CAPITAL VARIABLE, suscribe una accion con
valor nominal de mil pesos, que paga en dinero
efectivo.................................. 1 $1,000.00
- --------------------------------------------------------------------------------
ORAL-B LABORATORIOS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, suscribe
una accion con valor nominal de mil pesos, que
paga en dinero efectivo................... 1 $1,000.00
- --------------------------------------------------------------------------------
TOTAL: 10,000 $10,000,000.00
- --------------------------------------------------------------------------------
SEGUNDA. Se designan como Administrador Unico y Administrador
Unico Suplente de la Sociedad a los Senores Leticia Navarro Ochoa y Luis Rosas
Monroy, respectivamente.
TERCERA. Se designan como Funcionarios de la Sociedad a las
siguientes personas:
Licenciado Miguel Angel Castaneda -- Director de Finanzas Perez.
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Licenciado Eduardo Hurtado Badiola -- Director de Relaciones
Industriales.
Licenciado Nemesio Garcia Naranjo -- Sub-Director de Relaciones
Industriales.
CUARTA. Se designan como Comisario y Comisario Suplente de la
sociedad a los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez
Islas, respectivamente.
QUINTA. Los Administradores, Funcionarios y Comisarios designados
han aceptado sus cargos y tienen caucionado su manejo.
SEXTA. Se otorga en favor de los Senores Leticia Navarro Ochoa y
Luis Rosas Monroy, para que lo ejerciten conjunta o separadamente, poder general
con todas las facultades a que refiere el articulo decimo de los estatutos
sociales.
SEPTIMA. Se otorga en favor del Senor Licenciado Miguel Angel
Castaneda Perez, en su caracter de Director de Finanzas, poder general con las
siguientes facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de
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amparo, fomular querellas y denuncias penales y otorgar perdon; transigir,
comprometer en arbitros, absolver y articular posiciones, recusar jueces,
recibir pagos y ejecutar todos los demas actos expresamente autorizados por la
ley, entre los que se incluye representar a la sociedad ante autoridades y
tribunales penales, civiles, administrativos y del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion;
c) Suscribir titulos de credite en nombre de la sociedad en terminos
del articulo noyeno de la Ley General de Titulos y Operaciones de Credito, asi
como para abrir y operar cuentas bancarias, cuentas con instituciones bursatiles
y cualquier otro tipo de cuentas en las que se depositen o inviertan fondos de
la sociedad, en el pais y en el extranjero, en moneda nacional y en moneda
extranjera, incluyendo facultades para girar instrucciones para la disposicion
de fondos asi como para designar a personas facultades tambien para girar tales
instrucciones, y
d) Para otorgar y revocar poderes en terminos de los parrafos a) y
b) que anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
OCTAVA. Se otorga en favor de los Licenciados Eduardo Hurtado
Badiola y Nemesio Garcia Naranjo, en su caracter de Director de Relaciones
Industriales
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y Sub-Director de Relaciones Industriales respectivamente, para que lo ejerciten
conjunta o separadamente, poder general con las siguientes facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultados para desistirse aun del juicio de amparo,
formular querellas y denuncias penales y otorgar perdon; transigir, comprometer
en arbitros, absolver y articular posiciones, recusar jueces, recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion; y
c) Para otorgar y revocar poderes en terminos de los parrafos a) y
b) que anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
NOVENA. Se otorga en favor de los licenciados Juan M. Steta Torres,
Manuel Vera Vallejo, German Muggenburg y Rodriguez Vigil y Luis Alfonso
Cervantes
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Muniz, para que lo ejerciten conjunta o separadamente, poder general para
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal y sus
correlativos de los Codigos Civiles de los demas Estados de la Republica en
donde se ejercite el mandato.
PERSONALIDAD
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL ANGEL CASTANEDA
PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO CERVANTES MUNIZ Y
VICTOR MANUEL ROCHA DURAN, acreditan su personalidad en la siguiente forma:
a) La LICENCIADA LETICIA NAVARRO OCHOA, con la escritura numero
veintinueva mil doscientos veinticuatro, otorgada en esta Ciudad, el once de
octubre de mil novecientos noventa, ante el suscrito Notario, JAFRA COSMETICS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el treinta y uno de agosto de mil novecientos ochenta y nueve, la
designo Director General y con tal caracter le otorgo poder general para pleitos
y cobranzas y para actos de administracion, sin limitacion alguna, en los
terminos de los dos primeros parrafos del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de
los Codigos Civiles de los demas
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Estados de la Republica en donde se ejercite el mandato, y facultad expresa para
otorgar poderes y revocarlos.
b) El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, con la escritura
numbero veintinueve mil doscientos veintiocho, otorgada en esta Ciudad, el once
de octubre de mil novecientos noventa, ante el suscrito Notario, PLUMIBOL,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el veintiocho de febrero de mil novecientos noventa, lo designo
Director de Finanzas y con tal caracter le otorgo poder general para pleitos y
cobranzas y para actos de administracion, sin limitacion alguna, en los terminos
de los dos primeros parrafos del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de los
Codigos Civiles de los demas Estados de la Republica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
c) El SENOR GUSTAVO MADRINAN MICOLTA, con la escritura numero
veintinueve mil quinientos noventa y tres, otorgada en esta Ciudad, el veintiuno
de diciembre de mil novecientos noventa, ante el suscrito Notario, CALZADA
MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de
la Asamblea de Accionistas celebrada el veintiocho de diciembre de mil
novecientos ochenta y nueve le otorgo poder general para pleitos y cobranzas y
para actos de administracion, sin limitacion alguna, en los terminos de los
27
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dos primeros parrafos del articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil en vigor en el Distrito Federal, y sus correlativos de los Codigos
Civiles de los demas Estados de la Republica en donde se ejercite el mandato, y
facultad expresa para otorgar poderes y revocarlos.
d) El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, con la escritura
numero ciento diecinueve mil setecientos diez, otorgada en esta Ciudad, el
dieciocho de febrero de mil novecientos ochenta y ocho, ante el Notario numero
seis del Distrito Federal, Licenciado Fausto Rico Alvarez, BRAUN DE MEXICO Y
COMPANIA, DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Socios celebrada el
cuatro de diciembre de mil novecientos ochenta y siete, le otorgo poder general
para pleitos y cobranzas y para actos de administracion, sin limitacion alguna,
en los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal, y facultad
expresa para otorgar poderes y revocarlos. Dicha escritura fue inscrita en el
Registro Publico de la Propriedad de esta Capital, en el Folio Mercantil numero
siete mil trescientos treinta y cuatro.
e) El SENOR VICTOR MANUEL ROCHA DURAN, con la escritura numero diez
mil doscientos setenta y tres, otorgada en esta Ciudad, el veinticinco de
septiembre de mil novecientos noventa, ante el Notario numero ciento setenta y
nueve del Distrito Federal, Licenciado Juan Vicente Matute Ruiz, ORAL-B
LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo tomado en sesion
del
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Consejo de Administracion celebrada el seis de septiembre de mil novecientos
noventa, lo designo Director de Finanzas, y con tal caracter le otorgo poder
general para pleitos y cobranzas y para actos de administracion, sin limitacion
alguna, en los terminos de los dos primeros parrafos del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal,
facultad para suscribir titulos de credito en los terminos del articulo noveno
de la Ley General de Titulos y Operaciones de Credito, y facultad expresa para
otorgar poderes y revocarlos.
En dichas escrituras quedo debidamente acredita la constitucion y
capacidad legal de las sociedades mandantes.
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL
ANGEL CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO
CERVANTES MUNIZ Y VICTOR MANUEL ROCHA DURAN, declaran bajo protesta de decir
verdad que los poderes que ejercitan no les han sido revocados ni modificados en
forma alguna y que sus respectivas representadas tienen capacidad legal.
GENERALES
Los comparecientes declaran por las suyas ser:
La LICENCIADA LETICIA NAVARRO OCHOA, originaria de Colima, Colima,
que nacio el diez de noviembre de mil novecientos cincuenta y tres, mexicana por
nacimiento, hija de padres mexicanos, casada, licenciada en administracion de
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empresas, con domicilio en Alberto Zamora numero ochenta y cuatro, Coyoacan, en
esta Ciudad.
El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, originario de esta
Ciudad, que nacio el veintisiete de septiembre de mil novecientos cuarenta,
mexicano por nacimiento, hijo de padres mexicanos, casado, ejecutivo, con
domicilio en Plazuela de Monte Alegre numero ciento nueve, colonia Lomas de la
Herradura, Estado de Mexico.
El SENOR GUSTAVO MADRINAN MICOLTA, originario de Cali, Colombia, que
nacio el dieciocho de abril de mil novecientos cuarenta y uno, colombiano,
casado, director de manufactura, con domicilio en Paseo de la Reforma numero dos
mil doscientos treinta y tres, departamento doscientos dos, colonia Lomas de
Chapultepec, en esta Ciudad, y acredita su legal estancia en el Pais con la
libreta FM DOS numero doscientos cincuenta y seis mil cuatrocientos ochenta y
cinco, expedida el cuatro de junio de mil novecientos noventa, en la que tiene
reconocido el caracter de inmigrante.
EL LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, originario de esta
Ciudad, que nacio el dieciseis de noviembre de mil novecientos cincuenta y
cinco, mexicano por nacimiento, hijo de padres mexicanos, casado, abogado, con
domicilio en Campos Eliseos numero trescientos cuarenta y cinco, tercer piso,
colonia Chapultepec Polanco, en esta Ciudad.
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El SENOR VICTOR MANUEL ROCHA DURAN, originario de esta Ciudad, que
nacio el dos de septiembre de mil novecientos cuarenta y cinco, mexicano por
nacimiento, hijo do padres mexicanos, casado, director de finanzas, con
domicilio en La Joya numero treinta y cuatro, casa veintiuno, Tepepan, Tlalpan,
en esta Ciudad.
YO, EL NOTARIO, DOY FE Y CERTIFICO:
a) Que conozco personalmente a los comparecientes quienes a mi
juicio tienen capacidad legal por no constarme nada en contrario.
b) Que les fue leida integramente la presente escritura.
c) Que a los comparecientes les explique el valor y las
consecuencias legales del contenido de esta escritura y les informe de las penas
en que incurren quienes declaran con falsedad ante Notario, con excepcion del
LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, por ser perito en derecho.
d) Que lo relacionado e inserto concuerda con sus originales a que
me remito y tuve a la vista.
e) Que los comparecientes manifestaron al suscrito Notario su
conformidad con esta escritura, para constancia de lo cual la firman el dia de
su fecha.
Firma de la Licenciada Leticia Navarro Ochoa.
Firma del Senor Miguel Angel Castaneda Perez.
Firma del Senor Gustavo Madrinan Micolta.
Firma del Licenciado Luis Alfonso Cervantes Muniz.
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Firma del Senor Victor Manuel Rocha Duran.
Ante mi. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F.
Estados Unidos Mexicanos.
Autorizo definitavemente en Mexico a cuatro de marzo de mil
novecientos noventa y uno. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F.
Estados Unidos Mexicanos.
NOTAS MARGINALES
NOTA PRIMERA MEXICO A ONCE DE ENERO DE MIL NOVECIENTOS NOVENTA Y UNO
CON ESTA FECHA SE DIO AVISO A LA SECRETARIA DE RELACIONES EXTERIORES EN LOS
TERMINOS DE LOS ARTICULOS 31 PARRAFO 3/o/ Y 32 FRACCION II, PARRAFO 4/o/ DEL
REGLAMENTO DE LA LEY PARA PROMOVER LA INVERSION MEXICANA Y REGULAR LA INVERSION
EXTRANJERA, QUE SE RECIBIO CON EL NUMERO 3120 COPIA DEL CUAL SE AGREGA AL
APENDICE DE ESTE INSTRUMENTO CON LA LETRA B. DOY FE. NUNEZ. FIRMADO.
NOTA MEXICO A CUATRO DE MARZO DE MIL NOVECIENTOS NOVENTA Y UNO CON
ESTA FECHA SE DIO AVISO A LA OFICINA FEDERAL DE HACIENDA No. 12 DE LA
CONSTITUCION DE ESTA SOCIEDAD EN LOS
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TERMINOS DEL ARTICULO 27 DEL CODIGO FISCAL DE LA FEDERACION. DOY FE. NUNEZ.
FIRMADO.
ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO CIVIL.
En todos los poderes generales para pleitos y cobranzas bastara que
se diga que se otorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley para que se entiendan conferidos
sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar
que se dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que
se den con ese caracter para que el apoderado tenga toda clase de facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mencionados,
las facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los notarios insertaran este articulo en los testimonios de los
poderes que otorguen.
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ES PRIMER TESTIMONIO QUE SE EXPIDE PARA DISTRIBUIDORA VENUS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE A FIN DE QUE LE SIRVA PARA ACREDITAR SU
CONSTITUCION.
VA EN DOCE FOJAS CORREGIDAS.
MEXICO, DISTRITO FEDERAL A CUATRO DE MARZO DE MIL NOVECIENTOS
NOVENTA Y UNO. DOY FE.
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EXHIBIT 3.8(B)
Estatutos Sociales of DISTRIBUIDORA VENUS, S.A. de C.V.
Name, Domicile, Purpose, Duration and Nationality
Article 1. The name of the company is "Distribuidora Venus" which
denomination shall always be followed by the words "Sociedad Anonima de Capital
Variable," or by their abbreviation, "S.A. de C.V."
Article 2. The domicile of the company is Distrito Federal, Mexico.
However, the company may establish agencies or branches in any other part of
Mexico or a foreign territory, or designate conventional domiciles for the
execution of specific acts and contracts.
Article 3. The purpose of the company is:
1. To exercise general commercial powers, including the manufacture,
marketing and distribution of all classes of products that relate to personal
care and hygiene, whether for health-related or beauty-related purposes, as well
as cosmetics, fragrances, jewelry and other personal care products.
2. To create, export, import, acquire, alienate, lease or sublease all
types of commodities, equipment, machinery, and all other implementations
necessary to effectuate the activities described in paragraph 1 above.
3. To acquire shares, interests or participations, or make investments in,
any other type of business, corporation, organization or association.
4. To sell, transfer, or convey, in any manner prescribed by the laws that
govern business activities relating to shares of a corporation, interests or
participations representing investment in any type of business, corporation,
organization or association.
5. To receive from other corporations or persons, in a manner consistent
with the practices of other corporations or persons doing the same, any type of
service or services required to achieve the corporate purpose stated herein.
Such services include, but are not limited to, administrative services,
financial services, legal representation, marketing and accounting, which
includes the preparation of financial reports, annual or quarterly budgets and
manuals that evaluate the operational performance of the company, evaluation of
productivity and strategies for financing, and analysis of the availability of
capital for investment purposes.
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6. To build, rent, sublease, operate or possess in any manner permitted by
law, offices, factories, studios, stores, plants, warehouses and any other
establishments necessary to carry out the stated corporate purpose, as well as
to acquire and dispose of all forms of commercial or industrial businesses,
including shares or participations in such businesses.
7. To solicit, obtain, register, purchase, utilize, dispose of and acquire
in any other form, trademarks, trade names, copyrights, patents, inventions and
processes.
8. To establish branches, subsidiaries, agencies or offices in Mexico or
in any other country.
9. To act as agent, or to represent in any other manner, all types of
companies and individuals, within or outside Mexico.
10. To acquire, possess, lease or sublease, purchase or sell, and
negotiate with, in any manner permitted by law, real property, including the
acquisition, establishment and operation of experimental laboratories.
11. To offer all types of technical service, administrative consulting and
supervision to industrial and commercial entities, in Mexico and abroad, and to
receive the same services from such other industrial and commercial entities.
12. To supply and receive services for the manufacture of cosmetics
products or to supply and receive processed materials related to such products
from or to all types of commercial and industrial entities.
13. To lend or borrow money by any means, with or without security, and to
issue bonds or other types of obligations, and to carry out acts for the purpose
of obtaining credit. The foregoing shall be carried out in each case under the
supervision and intervention of those institutions whose participation is
required by law.
14. To guarantee obligations of third parties; and
15. In general, to carry out and perform any activities, civil or
commercial in nature, permitted by law.
Article 4. The duration of the company shall be 99 years, beginning with
the date of its incorporation.
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Article 5. The capital stock shall be variable. The fixed portion of the
capital, which is not be subject to withdrawal, is Ps.$10,000.00 New Pesos (Ten
Thousand New Pesos), represented by 10,000 ordinary, Series "A" shares, with a
par value of Ps.$1.00 New Peso (One New Peso) per share.
The variable portion of the capital stock shall be designated as Series
"B" shares.
In any case, the participation of foreign investors in the capital stock
of the company shall be subject to the applicable provisions of the Law on
Foreign Investment and its applicable regulations.
Stock certificates and provisional certificates shall comply with the
requirements specified in Article 125 of the General Corporations Law; stock
certificates may represent title to one or more shares and shall bear the
signature of two members of the Board of Directors or by the Sole Administrator,
as the case may be.
Article 6. Each increase or reduction of the fixed capital stock of the
company shall be declared by an Extraordinary Stockholders' Meeting. Each
increase or reduction of the variable capital stock of the company shall be
declared by an Ordinary Shareholders' Meeting.
According to the provisions of Article 132 of the General Corporations
Law, in the case of increase in the capital stock of the corporation,
stockholders shall have a preemptive right to subscribe to those shares
representing the increase in the capital stock of the company. In such a case,
the subscription right may be exercised in proportion to the number of
outstanding shares which the stockholder already owns.
Resolutions adopted at Stockholder's Meetings that approve any increase in
the capital stock of the company shall by published in the Official Gazette of
the Federation (Diario Oficial de la Federacion). Additionally, notice of the
adoption of such resolutions shall be sent to the Stockholders by certified mail
prior to the date of publication, to those addresses that are inscribed in the
Stock Registry Book of the company. In the event that there are Stockholders
domiciled outside of Mexico, notice shall be sent by certified air mail.
The Stockholders may exercise their preemptive rights within fifteen (15)
calendar days following the date of publication of the resolution adopting an
increase in the capital stock of the company. However, if the entire capital
stock of the company shall have been represented in any meeting adopting an
increase in capital stock, the period of fifteen (15) calendar days shall be
counted from the date of such meeting.
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Article 7. The company may reacquire shares representing the capital stock
of the company for their redemption with dividends through the means specified
by resolution of an Extraordinary Stockholders' Meeting, without diminution of
the capital stock of the company. The designation of those shares that shall be
redeemed shall be made by means of a lottery, the terms and conditions of which
shall be determined by the Extraordinary Stockholders' Meeting, or by their
delegation of such powers to the Board of Directors. The foregoing redemption
right shall be subject to the maximum amount of profits that may be issued for
such a purpose, such amount to be determined by the Extraordinary Stockholders'
Meeting. Title to those shares that shall have been redeemed according to the
provisions of this paragraph shall be deemed extinguished upon redemption.
ADMINISTRATION
Article 8. The administration of the company shall be entrusted to a Sole
Administrator or to a Board of Directors composed of the number of Directors
determined by the Ordinary Stockholders' Meeting. If the Stockholders shall deem
it necessary, they may designate an Alternate Sole Administrator or Alternate
members of the Board of Directors, as the case may be. The Sole Administrator or
the members of the Board of Directors, as the case may be, need not be
Stockholders. They shall hold their offices until their successors take their
place, but they may be reelected and shall receive compensation as determined by
the Ordinary Stockholders' Meeting.
Article 9. In the event that the company is administered by a Board of
Directors, any Stockholder or group of Stockholders representing at least 25%
(Twenty-Five Percent) of the capital stock of the company shall have the right
to appoint one member of the Board of Directors and his/her Alternate. In the
event that no Stockholder or group of Stockholders exercises the minority
Stockholders' rights established by this Article, all the members of the Board
of Directors shall be appointed by a majority of Stockholder votes.
Article 10. The Board of Directors or the Sole Administrator, as the case
may be, shall have the following authority and obligations:
1. General power of attorney for lawsuits and collections, with the
broadest power as permitted by law, in the terms of the first paragraph of
Article 2554 of the Civil Code for the Federal District and its correlative
Articles of any Civil Code of the states comprising the United Mexican States
(the "Civil Code"), with all general and such special powers as may be required,
including those provided in Article 2587 of the Civil Code, wherefore they will
have, without limiting the generality of the foregoing, the following authority:
to represent the company before Federal, State, Municipal,
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Administrative and Judicial authorities, before the Secretary of Labor and
before Conciliation and Arbitration Boards and to sign such documents as may be
required in the exercise of this power of attorney; to exercise all types of
rights and actions before any and all authorities and Boards of Conciliation and
Arbitration; to submit to any jurisdiction; to promote and withdraw from
litigation; to file charges and criminal complaints and appear as offended party
and assist the District Attorney and grant pardons; to compromise; to submit to
arbitration; to take and answer depositions; to accept and release all kind of
guarantees; to assign property and to perform all other actions which are
expressly determined by law.
2. General power of attorney for acts of administration, under the terms
of the second paragraph of Article 2554 of the Civil Code, including the
authority to execute, amend, carry out and rescind all kind of contracts and
agreements, to obtain loans and in general, to carry out all acts that are
related directly or indirectly to the corporate purposes.
3. General power of attorney for acts of ownership, under the terms of the
third paragraph of Article 2554 of the Civil Code, including the authority to
acquire personal and real property, to transfer title to as well as to encumber
by pledge, mortgage or otherwise, personal and real property.
4. Power to issue, sign and endorse negotiable instruments in accordance
with Article 9 of the General Law of Negotiable Instruments and Credit
Transactions.
5. Power to establish branches and agencies in any location of the United
Mexican States or abroad and to close such branches or agencies.
6. Power to designate and remove managers, officers and employees of the
company and to determine their powers, duties and remuneration.
7. Power to formulate internal regulations affecting employment in the
company.
8. Power to convene Stockholders' Meetings and to execute their
resolutions.
9. Power to exercise any other authority granted to it in these estatutos
and those powers that are by implication necessary to carry out the terms of the
estatutos.
10. Power to confer and revoke general and special powers of attorney
within the scope of the aforementioned powers.
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Article 11. To facilitate the administration of the company when the Board
of Directors are in session, a President and Secretary of the Board of Directors
shall be designated by the Ordinary Stockholders or by the Board of Directors,
such designation to be made for the purpose of performance of specific duties on
the part of the President and Secretary. The Secretary does not have to be a
member of the Board of Directors.
Article 12. In order for meetings of the Board of Directors to be legally
held, the attendance of at least the majority of the Directors or their
respective alternates shall be required. Resolutions of the Board of Directors
shall be valid only if adopted by the affirmative vote of the majority of the
members of the Board of Directors present at the meeting.
In accordance with the provisions of Article 143 of the General
Corporations Law, the members of the Board of Directors may adopt valid
resolutions without a formal meeting, provided that such resolutions, which
shall be made in writing, are signed by all the members of the Board of
Directors. In any case, it shall be the responsibility of the person designated
as Secretary of the Board of Directors to ensure the authenticity of the
signatures, and their preservation in the corporate records.
Article 13. The President of the Board of Directors does not hold voting
power to break any impasse that may occur during any meeting of the Board of
Directors. If the President or the Secretary do not preside over any meeting of
the Board of Directors, their respective duties shall be carried out by a board
member designated by the majority vote of those Directors who are present at the
meeting. All acts of the Board shall be transcribed in a Corporate Minutes Book,
which shall be signed by the President and Secretary of the Board of Directors,
or any other Director attending such a meeting.
Article 14. In order to guarantee the performance of their specific
duties, the Sole Administrator, or as the case may be, the Board of Directors
and their respective Alternates, shall deposit with the company PsN$100.00 (One
Hundred New Pesos) or in the alternative, a surety bond granted in favor of the
company in the same amount. Each member of the Board of Directors, or the Sole
Administrator, as the case may be, may not withdraw the amount granted to the
company as a guaranty until the discharge of their duties shall have been
approved by the Ordinary Stockholders' Meeting. Officers and other officials
shall grant to the company guaranties in the manner prescribed, if any, by the
Ordinary Stockholders' Meeting or the Board of Directors.
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OVERSIGHT OF THE COMPANY
Article 15. The oversight of the company shall be entrusted to one or more
Statutory Auditors, as may be determined by the Stockholders in a General
Meeting. An Alternate Statutory Auditor may be designated for each Statutory
Auditor.
Article 16. The Statutory Auditors need not also be Stockholders of the
company; they may be reelected and shall continue to discharge their duties
until their successors take office.
Article 17. The Statutory Auditors shall have the powers and obligations
granted to them by Article 166 of the General Corporations Law.
Article 18. The Statutory Auditors shall grant to the company the guaranty
amounts mentioned in Article 14 of these estatutos, and may only withdraw such
guaranty amounts if the discharge of their duties shall have been approved by
the Ordinary Stockholders' Meeting.
STOCKHOLDERS' MEETINGS
Article 19. Stockholders' meetings shall take place at the corporate
domicile. Those meetings which shall determine matters pursuant to Article 182
of the General Corporations Law shall be known as Extraordinary Stockholders'
Meetings. All other meetings shall be designated as Ordinary Stockholders'
Meetings.
Article 20. Calls for all Stockholders' Meetings shall be made by the Sole
Administrator or the President or Secretary of the Board of Directors, as the
case may be, in the manner permitted by law, or may be made by the Statutory
Auditor or Auditors. However, any Stockholder or group of Stockholders
representing at least 33% (Thirty-Three Percent) of the capital stock of the
company may, by written demand at any time, require the Sole Administrator or
the President or Secretary of the Board of Directors, or the Statutory Auditors,
to convene a meeting of the Stockholders to pass specifically upon those issues
enumerated in the demand letter. Any Stockholder holding at least one share of
the capital stock of the company shall have the same rights described herein in
the case of an event specified by Article 185 of the General Corporations Law.
If after the demand letter is served by the Stockholder or Stockholders holding
the rights mentioned in this Article 20 on the appropriate person, and such
person does not convene a meeting of the Stockholders within fifteen (15) days
following the date of the demand letter, such demand may be made upon any Civil
or District Judge by any interested Stockholder.
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Article 21. Calls for Stockholders' Meetings shall be published in the
Official Gazette of the Federation (Diario Oficial de la Federacion) at least
fifteen (15) days prior to the date fixed for such a meeting. Additionally,
notice of calls shall be sent to Stockholders' by certified mail prior to the
date of publication. For those Stockholders who are domiciled outside of Mexico,
notice shall be sent by certified air mail. Calls and notices of calls for
Stockholders' Meetings shall contain an Agenda to be passed upon or discussed at
such a meeting and shall be signed by the person sending such notice.
Article 22. Stockholders' Meetings may be held without the need for prior
publication if the entire capital stock of the company is represented at any
meeting.
Article 23. Only those Stockholders whose names are registered in the
Stock Registry Book of the company shall be admitted to Stockholders' Meetings.
Article 24. Stockholders may be represented at the meetings by an
attorney-in-fact holding a general or a special power of attorney or by an
attorney-in-fact designated by means of a simple letter of proxy.
Article 25. The acts of the Stockholders' Meetings shall be transcribed in
a Minute Book that shall be signed by those serving as President and Secretary
at the meeting, by the Statutory Auditors who are present at the meeting and by
those Stockholders or their representatives who wish to sign the Minute Book.
Article 26. Stockholders' meetings shall be presided over by the Sole
Administrator or the Chairman of the Board of Directors, as the case may be. In
their absence, such meetings shall be presided over by the person designated for
such purposes by the majority of those present at the corresponding meeting. The
Secretary of the Board of Directors shall act as Secretary of Stockholders'
Meetings and, in his absence, the person designated for such purposes by
stockholders in the corresponding meeting.
Article 27. Ordinary Stockholders' Meetings shall take place at least once
a year within four (4) months following the close of the fiscal year. In
addition to the subjects specified in the Agenda, the Annual Stockholders'
Meeting may specifically discuss, approve and modify the report of the Board of
Directors, including reports on the financial condition of the company as
required under Article 172 of the General Corporations Law; the Stockholders
shall also receive the reports or accounts of the Statutory Auditors.
Article 28. Ordinary Stockholders' Meetings shall be considered legally
held on a first or subsequent call if Stockholders holding at least 50% (fifty
percent) of all outstanding voting capital stock are present or represented at
such a meeting.
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Article 29. Extraordinary Stockholders' Meetings shall be considered
legally held on a first call if at least 75% (seventy-five percent) of the
outstanding voting capital stock of the company are present or represented in
such meetings; in the event of a second or subsequent call, the Extraordinary
Stockholders' Meeting shall be considered legally held if at least 50% (fifty
percent) of the outstanding voting capital stock of the company are present or
represented at such meetings.
Article 30. Resolutions of Ordinary Stockholders' Meetings shall be valid
if adopted by the affirmative vote of Stockholders representing a majority of
the outstanding capital stock of the company are present or represented at the
meeting, and when there shall have been convened a quorum as that term is
defined in Article 28.
In the event of an Extraordinary Shareholders' Meeting, their
resolutions shall be valid if adopted by the affirmative vote of Stockholders
representing 50% (fifty per cent) of the total outstanding voting capital stock
of the company.
Article 31. In accordance with Article 178 of the General Corporations
Law, the Stockholders may adopt valid resolutions without formally convening in
a meeting by written consent signed by all the Stockholders of the company
entitled to vote. In such a case, it shall be the responsibility of the person
designated as the Secretary of the Board of Directors to ensure the authenticity
of the Stockholders' signatures and to keep a record of the same.
FINANCIAL REPORTS
Article 32. Within four (4) months following the close of each fiscal
year, the Sole Administrator or the Board of Directors, as the case may be,
shall formulate the following financial reports respecting the company, which
shall contain all the information necessary to reflect the financial and
operational state of the company, as such reporting is required by Article 172
of the General Corporations Law:
a) The financial state of the company at the date of the close of the
fiscal year (Annual Financial Report).
b) Reports showing explanations and classifications of the operational
state of the company during the preceding fiscal year (Annual Business Report).
c) Reports indicating changes in the financial state of the company during
the course of the preceding fiscal year.
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d) Reports indicating any changes in the items that make up the capital
stock of the company during the preceding fiscal year.
e) Any notes or clarifications accompanying any of the preceding reports.
Article 33. All financial and business reports, together with any
documents justifying the findings contained in the reports, shall be delivered
to the Statutory Auditor or Auditors, for their inspection, within one (1) month
of the date fixed for the Annual Shareholders' Meeting.
Article 34. Within fifteen (15) days following the date of receipt of
financial and business reports, the Statutory Auditors shall issue to the Sole
Administrator or to the Board of Directors, as the case may be, a written
opinion for the Stockholders discussing the veracity, sufficiency, and
reasonability of the information which had been presented to the Auditor(s) by
the Sole Administrator or by the Board of Directors, as the case may be.
The aforementioned documents shall remain in the possession of the Sole
Administrator or the Board of Directors, as the case may be, but shall be
available to the Stockholders for their review at least fifteen (15) days prior
to the Annual Stockholders' Meeting.
The financial reports, once approved, shall be sent for publication and
deposited in the manner prescribed by Article 177 of the General Corporations
Law.
Article 35. The net profits obtained in each fiscal year shall be applied
as follows:
1) 5% (five per cent) of the net profits shall be set aside for creating
or restoring the Legal Reserve, as the case may be, until it equals one-fifth of
the corporate capital stock.
2) The remainder shall be distributed as determined by the Stockholders in
an Ordinary Meeting.
Article 36. Losses, if there shall have been any, shall be applied against
the Legal Reserve, and if such Reserve is insufficient, against paid capital
stock, with the understanding that the obligations of the Stockholders with
respect to any obligations of the company shall be limited to the extent of the
par value of their respective shares.
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DISSOLUTION AND LIQUIDATION
Article 37. The company shall be dissolved in such manner as generally
prescribed by applicable law. Once dissolved, the company shall be liquidated.
The liquidation shall be entrusted in one or more liquidators designated by the
Stockholders' in an Extraordinary Meeting resolving upon dissolution. If no such
designation shall have been made, the dissolution of the company shall be
entrusted in a Civil or District Judge of the corporate domicile at the request
of any Stockholder.
Article 38. In the event that the Stockholders shall not give specific
instructions to the liquidator(s), the purpose of the liquidation shall proceed
upon the following general grounds.
1) Conclusion of all pending business in the manner least prejudicial to
creditors and the Stockholders.
2) Recovery of all debts and accounts receivable and the payment by the
company of any outstanding debts.
3) The sale of all the assets of the company.
4) Preparation of final balances after liquidation.
5) Distribution of any remaining proceeds of the liquidation, if any,
among the Stockholders in proportion to their participation in the capital stock
of the company.
GENERAL PROVISIONS
Article 39. The promoters of the company, as such may exist, shall hold no
participation in the company upon the date of incorporation.
Article 40. The company is of Mexican nationality. Any foreigner who, at
the time of incorporation or at any time thereafter, acquires a corporate
interest or participation in the company shall be considered by that fact alone
as Mexican with respect to such interest or participation and it shall be
understood that such foreigner agrees not to invoke the protection of its
Government under penalty, in case of failure to comply with such agreement, of
forfeiture of such interest or participation in favor of the Mexican Nation.
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EXHIBIT 3.9
INSTRUMENTO NUMERO
VEINTICINO MIL CIENTO CINCUENTA Y SEIS
En la Ciudad de Mexico, Distrito Federal a los veintinue-ve dias del
mes de junio de mil novecientos ochenta y ocho.
ROBERTO NUNEZ Y BANDERA, Notario en Ejercicio, Titular de la Notaria
numero Uno de este Distrito, hago constar:
EL CONTRATO DE SOCIEDAD que otorgan JAFRA COSMECTICS, SOCIEDAD
ANOMINA DE CAPITAL VARIABLE, PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
ambas representadas por el Senor Luis Rosas Monroy, CALZADA MARIANO ESCOBEDO
151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, GILLETE DE MEXICO Y COMPANIA, DE
CAPITAL VARIABLE, ambas representadas por el Licenciado Juan M. Steta, y ORAL-B
LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada por el Senor
Cesar Augusto Valencia Lara, en los terminos de las siguientes Declaraciones y
Clausulas:
DECLARACIONES
I. Los comparecientes me exhiben y agrego al apendice de este
protocolo con el numero de este instrumento y letra "A" el permiso otorgado por
la Secretaria de Relaciones Exteriores que a la letra dice:
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Un sello: ESTADOS UNIDOS MEXICANOS. SECRETARIA DE RELACIONES
EXTERIORES. MEXICO. DIRECCION GENERAL DE ASUNTOS JURIDICOS. DIRECCION DE
PERMISOS ARTICULO 27 CONSTITUCIONAL. PERMISO No. 031248. EXP. No. 09/18542/88.
FOLIO No. 42539.
Tlatelolco, D.F., a veinte de mayo de mil novecientos ochenta y
ocho.
EN ATENCION a que el C. LUIS ALFONSO CERVANTES MUNIZ. solicito
permiso de esta Secretaria para que se constituya una: SOCIEDAD ANONIMA DE
CAPITAL VARIABLE BAJO LA DENOMINACION DE: COMERCIALIZADORA JAFRA, S.A. DE C.V.
CON DURACION DE: 99 anos CUYO DOMICILIO SERA: MEXICO, D.F. CAPITAL SOCIAL:
$500,000.00 M.N. MINIMO, MAXIMO ILIMITADO OBJETO SOCIAL: El que se detalla en el
anexo que firmado y sellado forma parte de este permiso.
y para insertar en la escritura constitutiva de la sociedad la
siguiente clausula contenida en el Articulo 2 del Reglamento de la Ley Organica
de la Republica, por medio de la cual se conviene con el Gobierno Mexicano, ante
la Secretaria de Relaciones Exteriores, por los socios fundadores y los futuros
que la sociedad pueda tener, en que: "Todo extranjero que en el acto de la
constitucion o en cualquier tiempo ulterior, adquiera un interes o participacion
social en la sociedad, se considerara por ese simple hecho como mexicano
respecto de uno y otra, y se entendera que conviene en no
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invocar la proteccion de su Gobierno bajo la pena, en caso de faltar a su
convenio de perder dicho interes o participacion en beneficio de la Nacion
Mexicana".
C O N C E D E al solicitante permiso para constituir la sociedad a
condicion de insertar en la escritura constitutive la clausula arriba
transcrita; en la inteligencia de que, de conformidad con lo dispuesto por el
articulo 5 de la Ley para Promover la Inversion Mexicana y Regular la Inversion
Extranjera, en relacion con los articulos 2 y 6 de la propia Ley, el 51% del
capital social solo podra ser suscrito por: a) personas fisicas de nacionalidad
mexicana; b) inmigrados que no se encuentren vinculados con centros de decision
economics del exterior y siempre que dichos inmigrados no realicen actividades
reservadas a personas fisicas mexicanas o a personas morales de la misma
nacionalidad con clausula de exclusion de extranjeros o que sean materia de
regulacion especifica, y c) personas morales mexicanas en las que participe
total o mayoritariamente el capital mexicano y en las que los extranjeros no
tengan, por cualquier titulo, la facultad de determinar su manejo. El 49%
restante sera de suscripcion libre, siempre que no tenga, por cualquier titulo,
la facultad de determinar el manejo de la sociedad cuya constitucion se autoriza
mediante este permiso. En todo caso y en cualquier circunstancia debera
respetarse el porcentaje de capital minimo mexicano, en terminos netos, que es
del 51%, por lo que la participacion de la inversion extranjera en el capital
social podra ser inferior al 49%, pero nunca exceder este porcentaje.
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En cada caso de adquisicion de bienes inmuebles, aguas o sus
accesiones, debera solicitarse a esta Secretaria el permiso previo, sin que
dicho permiso pueda ser otorgado para la adquisicion de inmuebles en una faja de
cien kilometros a lo largo de las fronteras y de cincuenta en las playas.
Este permiso se concede con fundamento en los Articulos 17 de la Ley
para Promover la Inversion Mexicana y Regular la Inversion Extranjera, 28,
Fraccion V, de la Ley Organica de la Administracion Publica Federal, en los
terminos del Articulo 27 Constitucional, Fraccion I, su Ley Organica y
Reglamento; su uso implica su aceptacion incondicional y obliga al cumplimiento
de las disposiciones que rigen el objeto de la sociedad, su incumplimiento o
violacion origina la aplicacion de las sanciones que determinan dichos
Ordenamientos; se expide sin perjuicio de otras autorizaciones, licencias o
permisos que el interesado deba obtener para el establecimiento y operacion de
la sociedad. El texto integro de este permiso se insertara en la escritura
constitutiva y dejara de surtir efectos si no se hace uso del mismo dentro de
los noventa dias habiles siguientes a la fecha de su expedicion, de conformidad
con lo dispuesto por el segundo parrafo del propio Articulo 2 del Reglamento de
la Ley Organica de la Fraccion I del Articulo 27 Constitucional.
SUFRAGIO EFECTIVO. NO REELECCION P.O. DEL SECRETARIO. EL DIRECTOR DE
PERMISOS ARTICULO 27 CONSTITUCIONAL. LIC. JUAN E. PENALOZA PLASCENCIA (Firmado).
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Al protocolizar este permiso el Notario debera transcribir la orden
de cobro que ampara el pago de derechos correspondiente.
Anexo al permiso obra la orden de cobro que a la letra dice:
IMPRESION MAQUINA REGISTRADORA MAY-27-88. 47251.- - $22,000.00. HACIENDA SHCP.
DECLARACION DE PAGO DE DERECHOS POR CERTIFICACIONES, REPOSICIONES, ETC. I.
OFICINA AUTORIZADA TLATELOLCO, D.F. II. DATOS DE IDENTIFICACION DEL
CONTRIBUYENTE, NOMBRE, DENOMINACION O RAZON SOCIAL: COMERCIALIZADORA JAFRA, S.A.
DE C.V. III. DEPENDENCIA. SECRETARIA DE RELACIONES EXTERIORES CLAVE 156. IV.
DESCRIPCION DEL CONCEPTO. SERVICIOS JURIDICOS PERMISO CONFORME A LAS FRACCIONES
I Y IV DEL ARTICULO 27 CONSTITUCIONAL. CONST. $22,000.00. CLAVE 154. IMPORTE A
PAGAR. $22,000.00. CLAVE 700. No. 3927851.
Anexo al permiso obra en dos fojas utiles debidamente selladas y
firmadas el texto del objeto social que a la letra dice:
ANEXO A LA SOLICITUD DE PERMISO A LA SECRETARIA DE RELACIONES
EXTERIORES PARA LA CONSTITUCION DE COMERCIALIZADORA JAFRA, S.A. DE C.V.
"ARTICULO III. La sociedad tendra por objeto:
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El ejercicio de la industria y el comercio en general y, en forma
particular, producir, elaborar, mezclar, adquirir, vender, importar, exportar,
distribuir y negociar en cualquier forma con toda clase de articulos para el
cuidado e higiene personal, para la salud y belleza, productos de tocador,
perfumes y cosmeticos, articulos de joyeria y demas articulos relacionados, por
lo que enunciativa y no limitativamente la sociedad podra:
1) Fabricar, procesar, comprar, vender, distribuir, importar,
exportar y, en general, negociar o comerciar en cualquier otra forma con toda
clase de maquinaria diversa, equipo, partes y artefactos para usos industriales
o comerciales;
2) Importar, exportar, comprar, vender, distribuir, y, en general,
negociar o industrializar toda clase de materias primas, productos terminados o
semi-terminados y articulos de comercio;
3) Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
en comodato, administrar, operar o poseer, en cualquier forma permitida por la
ley, fabricas, plantas, talleres, laboratorios, almacenes o bodegas, oficinas,
tiendas y otros establecimientos y bienes inmuebles que sean necesarios o
convenientes para el logro del objeto de la sociedad, incluyendo la organizacion
de sociedades y la adquisicion y explotacion de negociaciones industriales o
comerciales en cualquier otra forma comerciar con acciones, partes sociales,
porciones de capital social, bienes y derechos;
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4) Construir, edificar, reparar, reconstruir, demoler, planear y
disenar toda clase de casas habitacion, edificios, estructuras, e instalaciones
de todo tipo;
5) Adquirir, enajenar, importar, exporter, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes muebles;
6) Prestar y recibir servicios de construccion, diseno y
consultoria, asi como servicios administrativos y de supervision;
7) Prestar toda clase de servicios tecnicos, administrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios;
8) Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales, derechos de
autor, patentes, invenciones y procesos, asi como disponer de ellos;
9) Actuar como contratista, subcontratista, agente o representante y
designar subcontratistas, agentes o representantes;
10) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades civiles o mercantiles y
formar parte de ellas;
11) Representar o ser agente o comisionista de negociaciones
comerciales o industriales nacionales o extranjeras;
12) Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera, otros titulos de credito con la
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intervencion de las, instituciones senaladas por la ley, y otorgar fianzas o
garantias de cualquier clase respecto de obligaciones contraidas o de titulos
emitidos o aceptados por la propia sociedad o por teceros;
13) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito;
14) Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley."
Esto expuesto los comparecientes otorgan:
CLAUSULA UNICA
Los comparecientes constituyen una Sociedad Anonima de Capital
Variable que se regira por las disposiciones de la Ley General de Sociedades
Mercantiles y en especial por los siguientes:
ESTATUTOS
NOMBRE, DOMICILIO Y DURACION
ARTICULO I. La denominacion de la sociedad es "COMERCIALIZADORA
JAFRA" y debera ir siempre seguida de las palabras sociedad anonima de capital
variable, o de su abreviatura "S.A. de C.V."
ARTICULO II. El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucursares en cualquier otra
parte de la Republica Mexicana o del extranjero y someterse a domicilios
convencionales.
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ARTICULO III. La sociedad tendra por objeto:
El ejercicio de la industria y el comercio en general y, en forma
particular, producir, elaborar, mezclar, adquirir, vender, importar, exportrar,
distribuir y negociar en cualquier forma con toda clase de articulos para el
cuidado e higiene personal, para la salud y belleza, productos de tocador,
perfumes y cosmeticos, articulos de joyeria y demas articulos relacionados, por
lo que enunciativa y no limitativamente la sociedad podra:
1) Fabricar, procesar, comprar, vender, distribuir, importar,
exportar y, en general, negociar o comerciar en cualquier otra forma con toda
clase de maquinaria diversa, equipo, partes y artefactos para usos industriales
o comerciales;
2) Importar, exportar, comprar, vender, distribuir, y, en general,
negociar o industrializar toda clase de materias primas, productos terminados o
semi-terminados y articulos de comercio;
3) Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
en comodato, administrar, operar o poseer, en cualquier forma permitida por la
ley, fabricas, plantas, talleres, laboratorios, almacenes o bodegas, oficinas,
tiendas y otros establecimientos y bienes inmuebles que sean necesarios o
convenientes para el logro del objeto de la sociedad, incluyendo la organizacion
de sociedades y la adquisicion y explotacion de negociaciones industriales o
comerciales en cualquier otra forma comerciar con acciones, partes sociales,
porciones de capital social, bienes y derechos.
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4) Construir, edificar, reparar, reconstruir, demoler, planear y
disenar toda clase le casas habitacion, edificios, estructuras, e instalaciones
de todo tipo;
5) Adquirir, enajenar, importar, exportar, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes muebles;
6) Prestar y recibir servicios de construccion, diseno y
consultoria, asi como servicios administrativos y de supervision;
7) Prestar toda clase de servicios tecnicos, administrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios;
8) Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales, derechos de
autor, patentes, invenciones y procesos, asi como disponer de ellos;
9) Actuar como contratista, subcontratista, agente o representante y
designar subcontratistas, agentes o representantes;
10) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o mercantiles
y formar parte de ellas;
11) Representar o ser agente o comisionista de negociaciones
comerciales o industriales nacionales o extranjeras;
12) Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito con la
intervencion
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de las instituciones senaladas por la ley, y otorgar fianzas o garantias de
cualquier clase respecto de obligaciones contraidas o de titulos emitidos o
aceptados por la propia sociedad o por teceros;
13) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito;
14) Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ARTICULO IV. La sociedad tendra una duracion de noventa y nueve anos
contados a partir de la fecha de su constitucion.
CAPITAL SOCIAL Y ACCIONES
ARTICULO V. El capital social es variable. El capital fijo sin
derecho a retiro es de $500,000.00 M.N. (quinientos mil pesos 00/100 moneda
nacional), representado por 500 (quinientas) acciones ordinarias, nominativas,
Series "A", con valor nominal de $1,000.00 M.N. (mil pesos 00/100 moneda
nacional) cada una.
La parte variable del capital no tiene limite y estara representada
por acciones Serie "B" con las caracteristicas que determine la Asamblea
Extraordinaria de Accionistas que apruebe su emision.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitos establecidos
en el articulo ciento veinticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas
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acciones y estaran firmados por dos miembros del Consejo de Administracion o por
el Administrador Unico, segun sea el caso.
ARTICULO VI. Cada aumento o reduccion del capital social, ya sea que
corresponds al capital fijo o a la parte variable, sera decretado por Asamblea
General Extraordinaria de Accionistas, de conformidad con lo dispuesto por la
Ley General de Sociedades Mercantiles.
En los terminos del articulo ciento treinta y dos de la Ley General
de Sociedades Mercantiles, en el caso de aumento de capital los accionistas
tendran derecho preferente para suscribir las acciones representativas del
aumento en proporcion al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales Extraordinarias de
Accionistas en las que se acuerde aumento de capital seran publicadas en el
periodico oficial del domicilio de la sociedad. Ademas, las mencionadas
resoluciones se notificaran a los accionistas por medio de cartas que se
enviaran por correo certificado con anterioridad a la fecha de su publicacion, a
las direcciones que aparezcan registradas en el Libro de Registro de Acciones de
la sociedad. En caso de que existan accionistas domiciliados en el extranjero,
dichas cartas se enviaran por correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes
mencionado dentro de los quince dias de calendario siguientes a la fecha de
publicacion de la resolucion. Sin embargo, si la totalidad del capital social
estuviere representado en
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alguna Asamblea que decretase incrmento de capital, el periodo de quince dias de
calendario se computara a partir de la fecha de la Asamblea correspondiente y
los accionistas se daran por notificados de la resolucion desde la fecha de la
Asamblea, por lo que la publicacion y notificacion de la resolucion de
increments de capital no seran necesarias.
ARTICULO VII. La sociedad podra adquirir las acciones
representativas de su propio capital social para su amortizacion con utilidades
repartibles mediante resolucion al efecto de la Asamblea General Extraordiriaria
de Accionistas, sin disminucion del capital social. La designacion de las
acciones que hayan de ser amortizadas se hara por sorteo, en los terminos y
condiciones que disponga la Asamblea General Extraordinaria de Accionistas o,
por delegacion especifica de esta, el Consejo de Administracion sujetandose al
monto maximo de utilidades repartibles que habra de ser fijado por la propia
Asamblea. Los titulos de las acciones amortizadas quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII. La administracion de la sociedad estara confiada a un
Administrador Unico o un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considers
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas;
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desempenaran sus cargos hasta que las personas designadas para substituirlos
tomen posesion de sus puestos; podran ser reelectos y recibiran las
remuneraciones que determine la Asamblea de Accionistas.
ARTICULO IX. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerciere el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
ARTICULO X. El Consejo de Administracion o el Administrador Unico,
en su caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones: l.- Ejercitar el poder para pleitos y cobranzas, con
todas las facultades generales y las especiales que requieran clausula especial
de acuerdo con la ley, sin limitacion alguna, de conformidad con lo dispuesto
por el primer parrafo del articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil para el Distrito Federal y articulos correlatives en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos, estando
por lo tanto facultado para desistirse de procedimientos, aun del juicio de
amparo, formular querellas y denuncias penales y desistirse de ellas; coadyuvar
con el Ministerio Publico y otorgar perdon; transigir, someterse a arbitrage
formular y
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absolver posiciones; recusar jueces; recibir pagos y ejecutar todos los demas
actos expresamente autorizados por la ley, entre los que se incluye representar
a la sociedad ante autoridades y tribunales penales, civiles, administrativos y
del trabajo; 2.- Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos; 3.- Ejecutar actos de
dominio de acuerdo con lo previsto en el tercer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades federativas de
los Estados Unidos Mexicanos; 4.- Suscribir titulos de credito de conformidad
con el articulo noveno de la Ley General de Titulos y operaciones de Credito;
5.- Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad y designar
a las personas que puedan girar contra las mismas; 6.- Nombrar y remover al
director general y demas directores, gerentes, funcionarios y empleados de la
sociedad y determinar sus condiciones de trabajo, remuneraciones y facultades;
7.- Formular reglamentos interiores de trabajo; 8.- Convocar Asambleas de
Accionistas y ejecutar sus resoluciones; 9.- LLevar a cabo todos los actos
autorizados por estos estatutos o que sean consecuencia de los mismos; y 10.-
Conferir poderes generales y especiales en los terminos de los puntos uno, dos,
tres, cuatro y cinco anteriores, con o sin facultades de substitucion, asi como
revocar los poderes que hubieren sido otorgados.
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ARTICULO XI. Cuando la sociedad sea administrada por organo
colegiado el Presidente y el Secretario del Consejo de Administracion seran
designados por la Asamblea de Accionistas o por el Consejo de Administracion, y
tendran las facultades que se les otorguen al ser designados. El Secretario
podra ser o no miembro del Consejo.
ARTICULO XII. Para que las sesiones del Consejo de Administracion
sean validas se requerira, en todo caso, la asistencia de la mayoria de sus
miembros o de sus respectivos suplentes. El Consejo de adoptara sus resoluciones
por mayoria de votos de los miembros presentes en cada Sesion.
ARTICULO XIII. El Presidente no tendra voto de calidad en caso de
empate. Si el Presidente o el Secretario no asisten a la Sesion, el cargo
respectivo, para efectos de la Sesion, su cargo sera ocupado por el Consejero
designado por mayoria de votos de los miembros presentes. Las actas de Sesiones
del Consejo seran transcritas en un libro especialmente autorizado y seran
firmadas por quienes actuen como Presidente y Secretario de cada Sesion, asi
como por cualquier Consejero que asistiere y deseare hacerlo.
ARTICULO XIV. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los Consejeros y sus respectivos Suplentes,
al tomar posesion, despositaran con la sociedad la cantidad de cien mil pesos,
moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de fianza otorgada
por compania autorizada
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por igual suma. Los Consejeros o el Administrador Unico, segun sea el caso, no
podran retirar las garantias otorgadas hasta que su gestion haya sido aprobada
por Asamblea de Accionistas. Los directores y demas funcionarios de la sociedad
otorgaran las garantias que determine la Asamblea de Accionistas o el Consejo de
Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO XV. La vigilancia de la sociedad estara encomendada a uno o
dos Comisarios, segun lo determine la Asamblea de Accionistas. Si la Asamblea lo
considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
ARTICULO XVII. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
ARTICULO XVIII. Los Comisarios otorgaran las garantias senaladas en
el articulo XIII de estos estatutos para los Consejeros y solo podran retirarlas
cuando su gestion haya sido aprobada por Asamblea de Accionistas.
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ASAMBLEAS DE ACCIONISTAS
ARTICULO XIX. Las Asambleas de Accionistas se celebraran en el
domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas para
tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y dos
de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias.
ARTICULO XX. Las convocatorias para Asambleas de Accionistas deberan
ser hechas por el Administrodor Unico o por el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos un treinta y tres por ciento del capital social podran
solicitor por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen a
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco de la
Ley General de Sociedades Mercantiles. Si el Administrador Unico o el Presidente
o el Secretario del Consejo de Administracion, segon sea el caso, o los
Comisarios, no hicieren la convocatoria dentro de los quince dias siguientes a
la fecha de la solicitud, un Juez de lo Civil o de Distrito del domicilio de la
sociedad hara la convocatoria a peticion de cualquier accionista interesado,
debiendo exhibir sus acciones para tal efecto, de conformidad con lo previsto
por la ley.
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ARTICULO XXI. Las convocatorias para Asambleas se publicaran en el
Diario Oficial de la Federacion o en el periodico oficial del Distrito Federal,
con por lo menos quince dias de anticipacion a la fecha fijada para la Asamblea.
Ademas, las convocatorias se notificaran por carta a los accionistas, que se
enviaran por correo certificado, con anterioridad a la fecha de publicacion de
la convocatoria, a las direcciones que aparezcan en el Libro de Registro de
Acciones de la sociedad: Tratandose de accionistas domiciliados en el
extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran la Orden del Dia y estaran firmadas por quien las
expida.
ARTICULO XXII. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO XXIII. Solo los acciortistas que aparezcan inscritos en el
Libro de Registro de Acciones de la sociedad como titulares de una o mas
acciones, seran admitidos en Asambleas.
ARTICULO XXIV. Los accionistas podran ser representados en Asambleas
por la persona o personas que designen mediante carta poder firmada ante dos
testigos, o por cualquier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV. Las actas de las Asambleas se transcribiran a un libro
especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido
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como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO XXVI. Las Asambleas seran presididas por el Administrador
Unico o por el Presidente del Consejo de Administracion, segun sea el caso. Sin
embargo, en caso de que quien desempene alguno de los cargos mencionados
estuviere ausente, la Asamblea en cuestion sera presidida por la persona que sea
designada por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracior actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO XXVII. Las Asambleas Ordinaries se celebraran cuando menos
una vez al ano dentro de los cuatro meses siguientes al cierre de cada ejercicio
social. Ademas de los asuntos especificados en la Orden del Dia, la Asamblea
Ordinaria Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluya los informes y estados financieros a que se refire el
enunciado general del articulo ciento setenta y dos de la Ley General de
Sociedades Mercantiles, tomando en cuenta el dictamen del Comisario o
Comisarios, y adoptar las medidas que juzgue oportunas; de signar al
Administrador Unico o a los miembros del Consejo de Administracion, segun sea el
caso, y al Comisario o Comisarios, asi como, determinar las remuneraciones al
Administrador Unico o a los miembros del Consejo de Administracion y a los
Comisarios.
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ARTICULO XXVIII. Para que sean validas las Asambleas Ordinarias de
Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO XXIX. Para que sean validas las Asambleas Extraordinarias
de Accionistas celebradas en virtud de primera convocatoria, deberan reunir, por
lo menos, la presencia del setenta y cinco por ciento de las acciones
representativas del capital social. En caso de sequnda o ulterior convocatoria,
la Asamblea se considerara legalmente instalada si estuviere presente, cuando
menos, el cincuenta por ciento de las acciones representativas del capital
social.
ARTICULO XXX. Tratandose de Asambleas Ordinaries, las resoluciones
en ellas adoptadas seran validas cuando se emita voto favorable por la mayoria
de las acciones presentes, siempre y cuando hubiere existido quorum de presencia
en los terminos del articulo XXVIII de los estatutos sociales.
ARTICULO XXXI. En el caso de Asambleas Extraordinarias, sus
resoluciones seran validas cuando sean adoptadas por el voto favorable de las
acciones que representen, cuando menos, el cincuenta por ciento de las acciones
que integren el capita social.
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INFORMACION FINANCIERA
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de
cada ejercicio social, el Administrador Unico o el Consejo de Administracion, en
su caso, formulara los siguientes estados financieros, los que deberan contener
toda la informacion que sea necesaria para reflejar el estado que guarda la
situacion financiera y operativa de la sociedad, en terminos del enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles:
a) Estado de situacion financiers a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social;
e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
ARTICULO XXXIII. Los estados financieros, junto con los documentos
justificativos, deberan ser entregados al Comisario o Comisarios con un mes de
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anticipacion, cuando menos, a la fecha fijada para la Asamblea General Anual
Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO XXXIV. Dentro de los quince dias siguientes a la fecha en
que les hayan sido entregados los estados financieros, los Comisarios deberan
presentar al Administrador Unico o al Consejo de Administracion, segun sea el
caso, un informe respecto de la veracidad, suficiencia y razonabilidad de la
informacion que les naya sido presentada por el Consejo de Administracion o por
el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, a disposicion de los accionistas,
para su revision, por lo menos durante los quince dias anteriores a la fecha
senalada para la Asamblea Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse
publicar y despositar, en la forma y terminos previstos en el articulo ciento
setenta y siete de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV. Las utilidades netas de cada ejercicio social seran
distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
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2) El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO XXXVI. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva, y si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada
unicamente hasta el pago del valor nominal de sus respectivas acciones.
DISOLUCION y LIQUIDACION
ARTICULO XXXVII. La sociedad se disolvera en cualquiera de los
supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra en
liquidacion. La liquidacion se encomendara a uno o mas liquidadores designados
por Asamblea Extraordinaria de Accionistas. Si la Asamblea no hiciere la
designacion correspondiente la hara un Juez de lo Civil o de Distrito del
domicilio de la sociedad a solicitud de cualquier accionista.
ARTICULO XXXVIII. En ausencia de instrucciones expresas en contrario
dadas a los liquidadores por la Asamblea, la liquidacion se llevara a cabo de
acuerdo con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
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3) Venta de todos los activos de la sociedad;
4) Preparacion del balance general de liquidacion;
5) Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion al numero de sus acciones.
DISPOSICIONES GENERALES
ARTICULO XXXIX. Los socios fundadores, como tales, no se reservan
participacion alguna.
ARTICULO XL. Todo extranjero que en el acto de la constitucion o en
cualquier tiempo ulterior adquiera un interes o participacion social en la
sociedad se considerara por ese solo hecho como mexicano respecto de uno y otra,
y se entendera que conviene en no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
DISPOSICIONES TRANSITORIAS
PRIMERA.- Las acciones en que se divide el capital minimo de la
sociedad, han sido integramente suscritas y pagadas en la siguiente forma:
- --------------------------------------------------------------------------------
ACCIONISTAS ACCIONES CAPITAL
- --------------------------------------------------------------------------------
JAFRA COSMETICS, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, representada por el
senor Luis Rosas Monroy, suscribe cuatro
cientas noventa y seis acciones con
valor nominal de mil pesos cada una, que
paga en dinero efectivo. 496 $496,000.00
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
ACCIONISTAS ACCIONES CAPITAL
- --------------------------------------------------------------------------------
PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, representada por el senor Luis
Ros Monroy - suscribe una accion con valor
nominal de mil pesos/que paga en dinero
efectivo. 1 1,000.00
- --------------------------------------------------------------------------------
CALZADA MARIANO ESCOBEDO 151-155,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
representada por el Licenciado Juan M.
Steta suscribe una accion con valor
nominal de mil pesos que paga en dinero
en efectivo. 1 1,000.00
- --------------------------------------------------------------------------------
GILLETE DE MEXICO Y COMPASIA DE CAPITAL
VARIABLE, representada por el Licenciado
Juan M. Steta suscribe una accion con
valor nominal de mil pesos que paga en
dinero efectivo. 1 1,000.00
- --------------------------------------------------------------------------------
ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, representada por el
senor Cesar Augusto Valencia Lara
suscribe una accion con valor nominal de
mil pesos que paga en dinero efectivo. 1 1,000.00
- --------
- --------------------------------------------------------------------------------
TOTAL 500 $500,000.00
- --------------------------------------------------------------------------------
SEGUNDA.- Se hace constar que se da por recibido de la cantidad de
QUINIENTOS MIL PESOS, Moneda Nacional.
TERCERA.- Reunidos los accionistas fundadores de esta sociedad en
una Asamblea General Ordinaria, adoptaron por su voto unanime las siguientes
resoluciones:
I.- Se designa al Senor Luis Rosas Monroy como Administrador Unico
de la sociedad, quien en el desempeno de sus funciones gozara de los poderes y
facultades a que se refiere el articulo X (decimo) de los estatutos sociales.
II.- Se designan como Comisarios de la sociedad al senor Felipe
Ramos Martinez como Propietario y al Senor Eduardo Rodriguez I. como Suplente.
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III.- El Administrador Unico y los Comisarios designados deberan
caucionar el cumplimiento de sus obligaciones mediante la constitucion de una
fianza en la cantidad de cien mil pesos, moneda nacional.
IV.- Se hace constar que han quedado constituidas las
correspondientes fianzas en la cantitad de cien mil pesos moneda nacional, cada
una, correspondientes a las caucion otorgan el Administrador Unico y los
Comisarios, quienes de ese modo han manifestado la aceptacion de sus respectivos
cargos.
V.- Se autoriza la apertura de una o mas cuentas de depositos a la
vista en el banco o bancos en los Estados Unidos Mexicanos o en el extranjero,
que a su discrecion elijan los Senores Guillermo Best Ahumada y Luis Pardo Sosa
como firmas "A" conjuntamente con la firma de los senores Luis Rosas Monroy,
Miguel Lessing Schmitz y Alejandro Celis Colin como firmas "B".
VI.- Se otorga en favor del Senor Miguel Lessing Schmitz en su
caracter de Director de Finanzas de la sociedad un Poder General para pleitos y
cobranzas, con todas las facultades generales y las especiales que requieran
clausula especial de acuerdo con la ley, sin limitacion alguna, de conformidad
con lo establecido en el primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas que integran
los Estados Unidos Mexicanos, estando por lo consiguiente facultado para
intentar y desistirse aun de juicios de amparo, para transigir, para comprometer
en arbitros, para
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articular y absolver posiciones, para recusar jueces, para hacer y recibir pagos
y para ejecutar todos los otros actos expresamente determinados por la ley,
entre los que de manera enunciativa mas no limitativa se incluyen representar a
la sociedad ante autoridades judiciales, civiles o administrativas, ya sean
federales, estatales o municipales, incluyendo autoridades y tribunales del
trabajo, y ante la Secretaria de Relaciones Exteriores para celebrar convenios
con el gobierno federal en los terminos de las fracciones I y IV del articulo
veintisiete de la Constitucion Politica de los Estados Unidos Mexicanos, su Ley
Organica y los reglamentos de esta;
b) Para actos de administracion en los terminos del parrafo segundo
del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas que integran los Estados Unidos Mexicanos;
c) Para suscribir titulos de credito en los terminos del articulo
noveno de la Ley General de Titulos y Operaciones de Credito, pero siempre
sujeto a las limitaciones y restricciones previstas en los estatutos sociales o
establecidas por Asamblea de Accionistas;
d) Poder especial para actos de administracion en cuanto a asuntos
laborales, para los efectos de los articulos seiscientos noventa y dos,
setecientos ochenta y seis, ochocientos setenta y seis y siguientes; asi como
ochocientos setenta y demas aplicables de la Ley Federal del Trabajo en vigor, a
fin de que comparezca ante las
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autoridades del trabajo en asuntos laborales en que esta sociedad sea parte o
tercera interesada, tanto en la audiencia inicial, en cualquiera de sus etapas,
como a absolver posiciones; asi como ejercitar el poder general de la sociedad
para pleitos y cobranzas para que, de una manera enunciativa pero no limitativa,
de conformidad con lo dispuesto por los articulos dos mil quinientos cincuenta y
cuatro y dos mil quinientos ochenta y siete del Codigo Civil aplicable en
Materia Comun en el Distrito Federal y en toda la Republica en Materia Federal,
y sus correlativos en los Codigos Civiles para los diversos estados que integran
los Estados Unidos Mexicanos, represente a la sociedad ante las autoridades y
tribunales del trabajo, locales o federales, especialmente ante las Juntas de
Conciliacion y de Conciliacion y Arbitraje, asi como ante las autoridades y
tribunales penales, civiles y administrativos, quedando facultado expresamente
para intervenir en todo el procedimiento de las reclamaciones laborales y en el
de amparo, para transigir, articular y absolver posiciciones y ejecutar toda
clase de actos a nombre de la sociedad, como representante legal de la misma,
dado el cargo que ocupa y las funciones que desempena;
e) Para otorgar y revocar poderee generales o especiales a nombre de
la sociedad.
VI.- Se designa a la senorita Carm Iglesias Garnica como Gerente de
Personal de la sociedad, quien para el desempeno de sus funciones gozara de los
siguientes poderes y facultades:
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Ejercitar el poder general de la sociedad para actos de
administracion en cuanto a asuntos laborales, para los efectos de los articulos
seiscientos noventa y dos, setecientos ochenta y seis, ochocientos setenta y
seis y siguientes, asi como ochocientos setenta y demas aplicables de la Ley
Federal del Trabajo en vigor, a fin de que comparezca ante las autoridades del
trabajo en asuntos laborales en que esta sociedad sea parte o tercera
interesada, tanto en la audiencia inicial, en cualquiera de sus etapas, como a
absolver posiciones; ejercitar el poder general de la sociedad para pleitos y
cobranzas para que, de una manera enunciativa pero no limitativa, de conformidad
con lo dispuesto por los articulos dos mil quinientos cincuenta y cuatro y dos
mil quinientos ochenta y siete del Codigo Civil aplicable en Materia Comun en el
Distrito Federal y en toda la Republica en Materia Federal, y sus correlativos
en los Codigos Civiles para los Estados en la Republica Mexicana, represente a
la sociedad ante las autoridades y tribunales penales, civiles y
administrativos, quedando facultada expresamente para intervenir ante todo el
procedimiento de las reclamaciones laborales y en el del amparo, para transigir,
articular y absolver posiciones y ejecutar toda clase de actos a nombre de la
sociedad, como representante legal de la misma, dado el cargo que ocupa y las
funciones que desempena.
VII.- Se otorga un poder general a los senores Juan Mario Steta
Torres, Manuel Vera Vallejo, German Muggenburg y Rodriguez Vigil y Luis Alfonso
Cervantes Muniz para ser ejercitado conjunta o separadamente con todas las
facultades generales y
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especiales que requieran clausula especial conforme a ley, para pleitos y
cobranzas, en los terminos del primer del parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal. Los
apoderados solamente podran substituir el presente poder mancomunadamente.
VIII.- El primer ejercicio social correra de la fecha de firma de
esta escritura al treinta y uno de julio de mil novecientos ochenta y ocho
delegandose en la Asamblea General Ordinaria de Accionistas la facultad de
determinar las fechas de inicio y terminacion de los ejercicios sociales de la
empresa.
PERSONALIDAD
Los comparecientes acreditan su personalidad en la siguiente forma:
a) El Senor Luis Rosas Monroy, acredita la suya con la escritura
numero treinta y seis mil quinientos noventa y cinco, otorgada en esta Ciudad,
el veintiocho de junio de mil novecientos ochenta y cuatro, ante el Notario
nomero veintiocho del Distrito Federal, Licenciado Carlos A. Yfarraguerri y
Villarreal, por la cual JAFRA COSMETICS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
por acuerdo de Asamblea de Accionistas celebrada el quince de mayo de mil
novecientos ochenta y cua tre, otorgo en favor del Senor Luis Rosas Monroy, en
su caracter de Gerente General, poder general para pleitos y cobranzas y para
actos de administracion sin limitacion alguna con todas las facultades generales
y las especiales que requieran clausula especial conforme a la ley en los
terminos de los dos primeros parrafos del articulo dos mil
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quinientos cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal,
facultad para suscribir titulos de credito en los terminos del articulo noveno
de la Ley General de Titulos y Operaciones de Credito y facultad expresa para
otorgar poderes y revocarlos. Dicha escritura fue inscrita en el Registro
Publico de la Propiedad de esta Capital en el Folio Mercantil numero cuarenta y
seis mil novecientos sesenta y dos.
b) El Senor Luis Rosas Monroy, acredita la suya con la escritura
numero treinta y siete mil setecientos noventa y uno, otorgada en esta ciudad,
el quince de julio de mil novecientos ochenta y cinco, ante el mismo Notario que
la anterior, PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la
Asamblea de Accionistas celebrada el seis de junio de mil novecientos ochenta y
cinco, designo al Senor Luis Rosas Monroy, Administrador Unico y con tal
caracter le otorgo poder general para pleitos y cobranzas, para actos de
administracion y actos de dominio sin limitacion alguna, en los terminos de los
tres primeros parrafos del articulo dos mil quinientos cincuenta y cuatro del
Codigo Civil en vigor para el Distrito Federal, facultad expresa para suscribir
titulos de credito, en los terminos de los tres primeros parrafos del articulo
noveno de la Ley General de Titulos y Operaciones de Credito, facultad expresa
para ortorgar poderes y revocarlos.
En dicha escritura quedo debidamente acreditada la constitucion y
capacidad legal de la sociedad mandante.
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c) El Licenciado Juan M. Steta, acredita la suya con la escritura
numero cuarenta mil trescientos veinte, otorgada en esta Ciudad, el dieciocho de
agosto de mil novecientos ochenta y dos, ante el Notario numero ochenta y nueve
del Distrito Federal, licenciado Fernando G. Arce, por la cual CALZADA MARIANO
ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo del Consejo
de Administracion tomado en sesion celebrada el primero de julio le mil
novecientos ochenta y dos, otorgo en favor del Licenciado Juan M. Steta, le
otorgo poder general para pleitos y cobranzas, y para actos de administracion
sin limitacion alguna con todas las facultades generales y las especiales que
requieran clausula especial conforme a la ley en los terminos de los dos
primeros parrafos del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil en vigor en el Distrito Federal, y facultad expresa para otorgar poderes y
revocarlos. Dicha escritura fue inscrita en el Registro Publico de la Propiedad
de esta capital en el Folio Mercantil numero tres mil seiscientos veintiseis.
d) El Licenciado Juan M. Steta, acredita la suya con la escritura
numero seis mil cien, otorgada en esta ciudad, el dia dieciocho de enero de mil
novecientos ochenta y cuatro, ante el Notario numero veintiocho del Distrito
Federal, Licenciado Carlos A. Yfarraguerri y Villarreal, por la cual GILLETE DE
MEXICO Y COMPANIA, DE CAPITAL VARIABLE, por acuerdo de la Junta Ordinaria de
Socios, celebrada el ocho de noviembre de mil novecientos ochenta y tres, le
otorgo poder general para pleitos y cobranzas, y para actos de administracion
sin limitacion alguna, en los terminos
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de los dos primeros parrafos del articulo dos mil cuinientos cincuenta y cuatro
del Codigo Civil en vigor para el Distrito Federal, y facultad expresa para
otorgar poderes y revocarlos.
En dicha escritura quedo debidamente acreditada la constitucion y
capacidad legal de la sociedad mandante.
e) El Senor Cesar Augusto Valencia Lara, acredita la suya con la
escritura nomero cinco mil seiscientos treinta, otorgada en esta ciudad, el
veinticinco de febrero de mil novecientos ochenta y ocho, ante el Notario numero
cuarenta y nueve del Distrito Federal, Licenciado Juan Vicente Matutem Ruiz,
actuando como asociado en el protocolo de la Notaria numero ciento setenta y
nueve, por la cual ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
por acuerdo de la Asamblea de Accionistas celebrada el veintidos de enero de mil
novecientos ochenta y ocho, lo designo Gerente General, y con tal carficter le
confirio Poder General para pleitos y cobranzas y para actos de administracion,
sin limitacion alguna, en los terminos de los dos primeros parrafos del articulo
dos mil quinientos cincuenta y cuatro del codigo Civil en vigor para el Distrito
Federal, facultad para suscribir titulos de credito, en los torminos de los dos
primeros parrafos del articulo noveno de la Ley General de Titulos y Operaciones
de Credito, y facultad expresa para otorgar poderes y revocarlos.
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En dicha escritura quedo debidamente acredita la constitucion y
capacidad legal de la sociedad mandante.
Los comaprecientes declaran bajo protesta de decir verdad que los
poderes que ejercitan no les han sido revocados ni modificados en forma alguna y
que sus respectivas representadas tienen capacidad legal.
GENERALES
Los comparecientes declaran por las suyas ser:
El Licenciado Juan M. Steta, originario de esta ciudad, que nacio el
catorce de junio de mil novecientos veintiseis, mexicano por nacimiento, hijo de
padres mexicanos, casado, abogado, con domicilio en Campos Eliseos numero
trescientos cuarenta y cinco, Colonia Chapultepec-Polanco, en esta cuidad.
El Senor Luis Rosas Monroy, originario de esta Ciudad, que nacio el
diecinueve de mayo de mil novecientos cuarenta y cuatro, mexicano por
nacimiento, hijo de padres mexicanos, casado, industrial, con domicilio en
Giotto numero noventa y siete esquina Sassoferrato, colonia Alfonso Trece, en
esta ciudad.
El Senor Cesar Augusto Valencia Lara, originario de Medellin,
Colombia, que nacio el catorce de marzo de mil novecientos cuarenta y cuatro,
colombiano, y acredita su legal estancia en el pais con la libreta FM-DOS numero
trescientos cuarenta y cinco mil ochocientos treinta y cinco, expedida el once
de marzo de mil novecientos ochenta y ocho, en la que tiene reconocido el
caracter de inmigrante, para trabajar con la
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sociedad que representa, casado, ejectuivo de empresa, con domicilio en Jose
Maria Rico numero doscientos veintiuno, colonia del Valle, en esta cuidad.
YO, EL NOTARIO, DOY FE Y CERTIFICO:
a) Que conozco personalmente a los comparecientes quienes a mi
juicio tiene capacidad legal por no constarme nada en contrario.
b) Que les fue leida integramente la represente escritura.
c) Que a los comparecientes les explique el valor y las
consecuencias legales del contenido de esta escritura y les informe de las penas
en que incurren quienes declaran con falsedad ante Notario.
d) Que lo relacionado e inserto concuerda con sus originales a que
me remito y tuve a la vista.
e) Que los comparecientes manifesetaron al suscrito Notario su
conformidad con esta escritura, para constancia de lo cual la firman el dia
quince del mes siguiente al de su fecha.
Firma del Licenciado Juan M. Steta.
Firma del senor Luis Rosas Monroy.
Firma del senor Cesar Augusto Valencia Lara.
Ante mi. R. Nunez. Firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F.
Estados Unidos Mexicanos.
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Autorizo definitivamente en Mexico a doce de agosto de mil
novecientos ochenta y ocho. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del-D.F.
Estados Unidos Mexicanos.
NOTAS MARGINALES
NOTA PRIMERA MEXICO A DOCE DE AGOSTO DE MIL NOVECIENTOS OCHENTA Y
OCHO CON ESTA FECHA SE AGREGA AL APENDICE DE ESTA ESCRITURA EL AVISO DE
INSCRIPCION EN EL REGISTRO FEDERAL DE CONTRIBUYENTES RELATIVO A ESTA SOCIEDAD
CON LA CLAVE CJA-8807 15. DOY FE. NUNEZ. FIRMADO. ARTICULO DOS MIL QUINIENTOS
CINCUENTA Y CUATRO DEL CODIGO CIVIL
En todos los poderes generales para pleitos y cobranzas bastara que
se diga que se otorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley, para que se entiendan conferidos
sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar
que se dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que
se den con ese caracter para que el apoderado tenga toda clase de facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
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Cuando se quisieren limitar, en los tres casos antes mencionados,
las facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los notarios insertaran este articulo en los testimonios de los
poderes que otorguen.
ES PRIMER TESTIMONIO QUE SE EXPIDE PARA
COMERCIALIZADORA JAFRA, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A FIN DE QUE LE
SIRVA PARA ACREDITAR SU CONSTITUCION.
VA EN CATORCE FOJAS CORREGIDAS.
MEXICO, DISTRITO FEDERAL A QUINCE DE AGOSTO DE MIL NOVECIENTOS
OCHENTA Y OCHO. DOY FE.
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EXHIBIT 3.9(A)
LIBRO MIL SETENTA Y NUEVE
ESCRITURA CINCUENTA Y TRES MIL CIENTO SETENTA Y OCHO.
EN LA CUIDAD DE MEXICO, a trece de abril de mil novecientos noventa
y ocho, MIGUEL ALESSIO ROBLES, notario diecinueve, hago constar LA
TRANSFORMACION Y LA REFORMA A LOS ESTATUTOS, otorgadas por "JAFRA COSMETICS"
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, que consigna el licenciado LUIS ALFONSO
CERVANTES MUNIZ, en su caracter de delegado especial de la asamblea
extraordinaria de accionistas, en los terminos siguientes:
A N T E C E D E N T E S:
I. Por escritura numero veinticinco mil ciento cincuenta y seis,
extendida el veintinueve de junio de mil novecientos ochenta y ocho, ante el
notario uno del Distrito Federal, Roberto Nunez y Bandera, inscrita en el
Registro Publico de Comercio de esta cuidad, en el folio mercantil numero ciento
diez mil seiscientos noventa y nueve, se constituyo "Comercializadora Jafra"
Sociedad Anonima de Capital Variable, con duracion de noventa y nueve anos,
domicilio en esta cuidad y capital social minimo fijo de quinientos mil pesos.
II. Segun escritura numero veintinueve mil doscientos cuatro,
extendida el ocho de octubre de mil novecientos noventa, ante el mismo notario
que la anterior, se hizo constar la protocolizacion del acta de la asamblea
extraordinaria que los accionistas
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de "Comercializadora Jafra" Sociedad Anonima de Capital Variable, celebraron el
dos de diciembre de mil novecientos ochenta y ocho, en la que, entre otros
acuerdos, se tomo el de aumentar su capital social en la parte variable en le
suma de veintiseis mil novencientos cincuenta y tres millones seiscientos dos
mil pesos.
III. Mediante escritura numero treinta y un mil quinientos cuarenta
y cinco, extendid el seis de diciembre de mil novecientos noventa y uno, ante el
mismo notario que las anteriores, inscrita en el Registro Publico de Comercio de
esta cuidad, con el folio mercantil numero ciento diez mil seiscientos noventa y
nueve, se protocolizo el acta de la asamblea extraordinaria que los accionistas
de "Comercializadora Jafra" Sociedad Anonima de Capital Variable, celebraron el
veinte de agosto de mil novecientos noventa y uno, en la que se tomo el acuerdo
de cambiar la denominacion de la sociedad por la que actualmente ostenta de
"Jafra Cosmetics" Sociedad Anonima de Capital Variable, reformandose al efecto e
articulo primero de los estatutos sociales.
IV. Por escritura treinta y cuatro mil ciento cuarenta, extendida el
veintinueve de marzo de mil novecientos noventa y tres, ante el mismo notario
que las anteriores, se protocolizo el acta de la asamblea extraordinaria que los
accionistas de "Jafra Cosmetics" Sociedad Anonima de Capital Variable,
celebraron el treinta y uno de octubre de mil novecientos noventa y dos, en la
que se tomo el acuerdo de reducir el capital social en su parte variable, para
quedar en la suma de quince mil doscientos cuarenta y cuatro millones
cuatrocientos dos mil pesos.
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V. Mediante escritura numero tres mil cuatrocientos cuarenta y
cinco, extendida el veintiocho de abril de mil novecientos noventa y cinco, ante
el notario ciento ochenta y siete del Distrito Federal, Carlos Antonio Rea
Field, inscrita en el Registro Publico de Comercio de esta cuidad, en el folio
mercantil ciento diez mil seiscientos noventa y nueve, se hizo constar la
protocolizacion parcial del acta de la asamblea ordinaria anual y extraordinaria
que los accionistas de "Jafra Cosmetics" Sociedad Anonima de Capital Variable,
celebraron el primero de agosto de mil novecientos noventa y cuatro, en la que,
entre otros acuerdos, se tomo el de reformar totalmente los estatutos sociales.
VI. Los accionistas de "JAFRA COSMETICS" SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, celebraron asamblea extraordinaria el treinta de marzo de mil
novecientos noventa y ocho, habiedose asentado el acta relativa en ocho fojas,
que el suscrito notario agrega al legajo de esta escritura con la letra "A", en
union de su anexo consistente en los estatutos sociales aprobados y que en su
parte conducente dice:
"En el Distrito Federal, Mexico, a las 10:00 del 30 de marzo de
1998, se reunieron en el domicilio social de JAFRA COSMETICS, S.A. DE
C.V., la senorita Gabriela de la Mora Galvan, en representacion de Grupo
Jafra, S.A. de C.V., y el senor Luis Alfonso Cervantes Muniz, en
representacion de Consultoria Jafra, S.A. de C.V., para celebrar la
ASAMBLEA GENERAL EXTRAORDINARIA DE ACCIONISTAS de JAFRA COSMETICS, S.A. DE
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C.V., a la que fueron previa y oportunamente convocados. Estuvieron
tambien presentes los senores Alfredo Munda Tabusso y Alberto Mena Adams,
Presidente y Secretario, respectivamente, del Consejo de Administracion de
la sociedad, asi como el senor Fernando Holguin Maillard, Comisario de la
misma. Por designacion unanime de los presentes fungio como Presidente de
la Asamblea el del Consejo de Administracion de la propia sociedad, senor
Alfredo Munda Tabusso. Actuo como Secretario de la misma el del mencionado
organo colegiado, senor Alberto Mena Adame. El Presidente designo
escrutadores al senor Luis Alfonso Cervantes Muniz y a la senorita
Gabriela de la Mora Galvan, quienes despues de aceptar sus cargos
revisaron los instrumentos conteniendo los mandatos con los que ambos
comparecieron a la Asamblea en representacion de los socios de la sociedad
y el Libro de Registro de Acciones de la sociedad, e hicieron constar, en
union del Comisario, que se encontraba representada en la Asamblea la
totalidad de las acciones en que se divide el capital social de JAFRA
COSMETICS, S.A. DE C.V., en la siguiente forma: - ACCIONISTA - ACCIONES
SERIES - "A" - "B" - VOTOS...........TOTAL: 500 - 15'244,402 - 15'244,902.
En virtud de la certificacion de los escrutadores de que se encontraba
representada en la Asamblea la totalidad de las acciones en que se divide
el capital social de la sociedad, con fundamento en los articulos 188 de
la Ley General de Sociedades Mercantiles y vigesimo segundo de los
estatutos sociales
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de la empresa, el Presidente declaro la Asamblea legalmente instalada, no
obstante no haberse publicado la convocatoria respectiva, y sometio a
consideracion de la Asamblea el siguiente: ORDEN DEL DIA - I. Proposicion,
discusion y, en su caso, resolucion, sobre la transformacion de la
sociedad de sociedad anonima de capital variable a sociedad de
responsabilidad limitada de capital variable. II. Adopcion de estatutos
sociales de la sociedad acordes a su nueva estructura corporativa. III.
Designacion de delegados para formalizar las resoluciones adoptadas por la
Asamblea. PUNTO UNO. En relacion con este primer punto del Orden del Dia
el Presidente de la Asamblea explico a los presentes la conveniencia de
modificar la estructura social de la sociedad adoptando el tipo legal de
sociedad de responsabilidad limitada, continuando bajo la modalidad de
capital variable, conscientes de que dicha transformacion traera como
consecuencia que las partes sociales que habran de representar su
inversion solamente podran ser cesibles satisfaciendose los requisitos que
al efecto habran de prever los nuevos estatutos sociales de la sociedad y
la Ley General de Sociedades Mercantiles. Al respecto la Asamblea adopto,
por unanimidad de votos, las siguientes - RESOLUCIONES - "1. De
conformidad con lo que establecen los articulos 182, fraccion VI, 227 y
228 de la Ley General de Sociedades Mercantiles, se resuelve la
transformacion de JAFRA COSMETICS, S.A. DE C.V., en sociedad de
responsabilidad limitada de capital variable."
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"2. Los acuerdos adoptados por la Asamblea respecto de la transformacion
de la sociedad surtiran efectos, para la misma y sus accionistas o socios,
a partir del 31 de marzo de 1998; sin embargo, de conformidad con lo que
establece el articulo 225 del la Ley General de Sociedades Mercantiles, la
transformacion surtira efectos respecto de terceros en la fecha de
inscripcion de los acuerdos correspondientes en el Registro Publico de la
Propiedad y de Comercio del Distrito Federal, para lo cual se ha obtenido
el consentimiento de los principales acreedores de la sociedad,
resolviendose en este acto el pago de los creditos de la sociedad en favor
de aquellos acreedores que no otorguen o no hubieren otorgado su
consentimiento para la transformacion, dandose por vencidos dichos
creditos con efectos a partir del 31 de marzo de 1998." "3. Como
consecuencia de la transformacion decretada y por virtud de ella, la
sociedad continuara existiendo y operando abjo la denominacion JAFRA
COSMETICS, la cual, en todo caso, ira seguida de las palabras SOCIEDAD DE
RESPONSABILIDAD LIMITADA DE CAPITAL VARIABLE o de sus abreviaturas S. de
R. L. de C.V." "4. Sin perjuicio de su participacion en el capital, al
surtir efectos la transformacion de la sociedad los socios continuaran
respondiendo de las obligaciones sociales hasta por un monto igual o
equivalente al de sus aportaciones." "5. Como consecuencia de la
transformacion acordada en terminos de las resoluciones que anteceden, del
total del capital social suscrito y pagado de la sociedad a la fecha
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de esta Asamblea, mismo que asciende a la cantidad de $15,244,902.00 M.N.
(quince millones doscientos cuarenta y cuatro mil novecientos dos pesos
00/100, moneda nacional), constituira el capital fijo la suma de $3,000.00
M.N. (tres mil pesos 00/100, moneda nacional), dividido en dos partes
sociales correspondientes a los dos socios que actualmente integran la
sociedad, por los montos que a continuacion se indican:
SOCIOS VALOR DE LA PARTE
SOCIAL DEL CAPITAL FIJO.
Grupo Jafra, S.A. de C.V. $ 2,999.00 M.N.
Consultoria Jafra, S.A. de C.V. $ 1.00 M.N.
TOTAL: $ 3,000.00 M.N.
El resto de las aportaciones efectuadas a la sociedad hasta la fecha de
esta Asamblea quedaran en la parte variable del capital social, misma que
no tiene limite, respecto de la cual se expedira una sola parte social al
socio Grupo Jafra, S.A. de C.V., con valor de $15,241,902.00 M.N. (quince
millones doscientos cuarenta y un mil novecientos dos pesos 00/100, moneda
nacional)." - "6. Las partes sociales no estaran representadas por titulos
negociables, por lo que los titulos representativos de las acciones
actualmente en circulacion quedan cancelados a partir de esta fecha." -
"7. En cumplimiento de lo que disponen los articulos 223, 225 y 228 de la
Ley General de Sociedades Mercantiles, procedase de inmediato a
protocolizar e inscribir los acuerdos sobre la transformacion de la
sociedad adoptados por esta Asamblea, en el Registro Publico de la
Propiedad y
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de Comercio del Distrito Federal, y a publicar dichos acuerdos, asi como
el balance general de JAFRA COSMETICS, S.A. DE C.V., al 28 de Febrero de
1998 en el Diario Oficial de la Federacion." - "8. La sociedad continuara
administrada por un Consejo de Gerentes, el que queda integrado
precisamente por quienes fungen como miembros del actual Consejo de
Administracion de la sociedad, no siendo necesaria designacion alguna al
respecto." - "9. La vigilancia de la sociedad continuara encomendada a
quienes actualmente se desempenan como Comisario y Comisario Suplente,
respectivamente, de la sociedad, no siendo necesaria designacion alguna al
respecto." - "10. Todos los poderes conferidos por la sociedad en vigor a
esta fecha asi habran de continuar, no siendo necesaria ratificacion
alguna al respecto." - PUNTO DOS. - En relacion con este segundo punto del
Orden del Dia el Presidente manifesto a los presentes que como
consecuencia de la transformacion de la sociedad, resulta necesario
adoptar nuevos estatutos sociales, a efecto de adecuar el pacto social a
la nueva estructura de la sociedad. En tal virtud el Secretario de la
Asamblea procedio a dar lectura al proyecto de estatutos sociales que se
somete a la consideracion de la Asamblea, mismo que se hizo llegar
oportunamente a los accionistas de la sociedad para su analisis.- Al
respecto la Asamblea adopto, por unanimidad de votos, la siguiente
RESOLUCION - "Con efectos a partir del 31 de marzo de 1998 se adoptan por
JAFRA COSMETICS, S. DE R. L. DE C. V. los estatutos cuyo texto se agrega
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al expediente del acta de esta Asamblea bajo la LETRA "A" debidamente
inicialados por el Presidente y por el Secretario de la Asamblea para su
debida identificacion." - PUNTO TRES.- En desahogo de este tercer punto
del Orden del Dia se propuso la designacion de los senores Alfredo Munda
Tabusso, Omar Cavassuto, Alberto Mena Adame y Luis Alfonso Cervantes
Muniz, y la de la senorita Gabriela de la Mora Galvan, como delegados de
la Asamblea, a efecto de que cualquiera de ellos, conjunta o
separadamente, indistintamente, lleve al cabo los actos y firme los
documentos que fueren necesarios para dar cumplimiento y formalizar las
resoluciones adoptadas por esta Asamblea, incluyendo, entre otras: i) la
obtencion del permiso correspondiente de la Secretaria de Relaciones
Exteriores, en caso de que el mismo se requiera; ii) protocolizar por
Notario Publico e inscribir en el Registro Publico de la Propiedad y de
Comercio del Distrito Federal los acuerdos de transformacion y, en
general, el acta de esta Asamblea; y iii) publicar el balance general de
la sociedad, asi como los avisos que fueren necesarios o convenientes, en
relacion con las resoluciones adoptadas por la Asamblea.- Al respecto la
Asamblea adopto, por unanimidad de votos, la siguiente - RESOLUCION - "Se
designan delegados de esta Asamblea a los senores Alfredo Munda Tabusso,
Omar Cavassuto, Alberto Mena Adame y Luis Alfonso Cervantes Muniz, y a la
senorita Gabriela de la Mora Galvin, a efecto de que cualquiera de ellos,
conjunta o separadamente, indistintamente, lleve al cabo
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los actos y firme los documentos quo fueren necesarios para dar
cumplimiento y formalizar las resoluciones adoptadas por esta Asamblea,
incluyendo, entre otras: i) la obtencion del permiso correspondiente de la
Secretaria de Relaciones Exteriores, en caso de que el mismo se requiera;
ii) protocolizar por Notario Publico e inscribir en el Registro Publico de
la Propiedad y de Comercio del Distrito Federal los acuerdos de
transformacion y, en general, el acta de esta Asamblea; y iii) publicar el
balance general de la sociedad, asi como los avisos que fueren necesarios
o convenientes, en relacion con las resoluciones adoptadas por la
Asamblea." No habiendo otro asunto que tratar se suspendio la Asamblea
para la preparacion de la presente acta, la cual fue leida, aprobada y
firmada por todos los que en ella intervinieron. Se hace constar que al
momento de adoptarse todas y cada una de las resoluciones contenidas en
esta acta estuvo representada y participo la totalidad del capital de la
sociedad. Se anexan al expediente del acta de esta Asamblea, bajo la LETRA
"B", las cartas poder con las que los representantes de los accionistas
acreditaron su representacion en la Asamblea. Se levanto la Asamblea a las
11:30 del 30 de marzo de 1998. Alfredo Munda Tabusso. Presidente. Firma
ilegible. Alberto Mena Adame. Secretario. Firma ilegible. Gabriela de la
Mora Galvam, en representacion de Grupo Jafra, S.A. de C.V. Firma
ilegible. Luis Alfonso Cervantes Muniz, en representacion de
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Consultoria Jafra, S.A. de C.V. Firma ilegible. Fernando Holguin Maillard.
Comisario. Firma ilegible".
"ANEXO "A": JAFRA COSMETICS, S. DE R.L. DE C.V
ESTATUTOS SOCIALES
DENOMINACION, OBJETO, DOMICILIO Y DURACION
ARTICULO I.- La denominacion de la sociadad es "JAFRA COSMETICS", y
debera ir siempre seguida de las palabras "Sociedad de Responsabilidad Limitada
de Capital Variable" o de su abreviatura "S. de R.L. de C.V.".
ARTICULO II.- La sociedad tendra por objeto:
I. El ejercicio del comercio en general, incluyendo la manufactura,
comercio y distribucion de toda clase de articulos para el cuidado e higiene
personal, para la salud y belleza, productos de tocados, perfumes y cosmeticos,
articulos de joyeria.
II. Fabricar, exportar, importar, adquirir enajenar, arrendar,
subarrendar, dar y tomar en comodato, todo tipo de mercaderias, equipos,
maquinaria, implementos y efectos necesarios para realizar las actividades
descritas en el parrafo I) que antecede.
III. Adquirir acciones, partes sociales, certificados de
participacion y constancias de interes que acrediten inversion en cualquier tipo
de empresas, sociedades, organizaciones y asociaciones.
IV. Vender, transferir, entregar y en cualquier otra forma permitida
por la ley negociar con acciones, partes sociales, certificados de participacion
y constancias de
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interes que acrediten inversion en cualquier tipo de empresas, sociedades,
organizaciones y asociaciones.
V. Recibir de otras sociedades y personas, asi como proporcionar a
otras sociedades y a personas todo tipo de servicios que se requieran para
lograr sus objetos sociales, tales como servicios administrativos, financieros,
legales, de mercadeo y de tesoreria, incluyendo la preparacion de reportes y
estados financieros, presupuestos, programas y manuales de operacion, asi como
la evaluacion de resultados operacionales, evaluacion de productividad y
posibilidades de financiamiento, incluyendo analisis de disponibilidad de
capital.
VI. Establecer, arrendar, subarrendar, operar y poseer en cualquier
forma permitida por la ley, oficinas, fabricas, talleres, bodegas, plantas,
almacenes, tiendas y demas establecimientos necesarios para la realizacion del
objeto social, asi como adquirir y enajenar toda clase de negociaciones
industriales y comerciales, incluyendo acciones, participaciones e instrumentos
por ellas emitidos.
VII. Solicitar, obtener, registrar, adquirir, usar, enajenar y en
cualquier otra forma negociar y disponer de marcas industriales y de servicios,
nombres comerciales, derechos de autor, patentes, invenciones y procesos;
VIII. Establecer sucursales, subsidiarias, agencias y oficinas de
representacion en Mexico y en el Extranjero.
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IX. Representar y actuar como agente, en la Republica Mexicana y en
el extranjero, de empresas industriales y comerciales, sean nacionales o
extranjeras.
X. Adquirir, poseer, arrendar, subarrendar, comprar, vender y
negociar en cualquier otra forma permitida por la ley con bienes inmuebles,
incluyendo la adquisicion, establecimiento y operacion de laboratorios de
investigacion.
XI. Proporcionar toda class de servicios tecnicos, administrativos
de asesoria y de supervision a empresas industriales y comerciales, tanto en
Mexico como en el extranjero, y recibir dichos servicios.
XII. Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales.
XIII. Dar y tomar dinero an prestamo con o sin garantias de
cualquier tipo, emitir bonos, obligaciones y demas titulos de credito, con la
supervision e intervencion de las instituciones que e cada caso se requiera de
acuerdo con la ley.
XIV. Emitir, suscribir y, en cualquier otra forma permitida por la
ley, negociar con cualquier class de titulos de credito y valores, asi como
otorgar avales y otras garantias respecto de obligaciones de terceros con la
participacion de las instituciones que se requieran conforme a la ley; y
XV. Llevar al cabo todos los actos y celebrar todos los contratos,
sean civiles o mercantiles, permitidos por la ley.
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ARTICULO III.- El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucursales en cualquier otra
parte de la Republica Mexicana o del extranjero y someterse a domicilios
convencionales.
ARTICULO IV.- La duracion de la sociedad as de 99 (noventa y nueve)
anos contados a partir de la fecha de firma de su escritura constitutiva.
CAPITAL SOCIAL
ARTICULO V.- El capital social es variable. El capital fijo sin
derecho a retiro es de $3,000.00 M.N. (tres mil pesos 00/100, moneda nacional),
integramente suscrito y pagado, representado por partes sociales. La parte
variable del capital es ilimitada y estara representada por partes sociales.
DERECHO DE VOTO
ARTICULO VI.- Todo socio tendra derecho de participar en las
decisiones de las Asambleas de Socios, gozando de un voto por cada $1.00 M.N.
(un peso 00/100, moneda nacional) de su aportacion.
PARTES SOCIALES
ARTICULO VII.- Cada socio tendra una parte social. Cuando un socio
haga una nueva aportacion o adquiera la totalidad o una fraccion de la parte de
otro socio, en los terminos previstos en estos estatutos sociales, se aumentara
su parts social en la cantidad respectiva.
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ARTICULO VIII.- La sociedad llevara un Libro Especial de Socios en
el cual se anotara el nombre y el domicilio de cada socio, con indicacion de sus
aportaciones y la transmision de las partes sociales. Para acreditar la calidad
de socio se requiere aparecer inscrito como tal en el Libro Especial de Socios.
CERTIFICADOS DE PARTES SOCIALES
ARTICULO IX.- Las partes sociales podran estar representadas por
documentos que, en todo caso, solo tendran valor probatorio, no seran
transmisibles por endoso y deberan ser suscritos por dos miembros del Consejo de
Gerentes o por el Gerente Unico, segun sea el caso.
Las partes sociales no son negociables y solo podran ser cedidas de
conformidad con lo establecido en los articulos X y XI de estos estatutos
sociales.
TRANSMISION DE PARTES SOCIALES
ARTICULO X.- Toda transmision de partes sociales debera realizarse
con estricto apego a lo previsto en los articulos X y XI de estos estatutos
sociales.
Ningun socio podra transmitir parcial o totalmente su parte social
min el previo consentimiento unanime de todos los socios, debiendo, en todos los
casos seguir el procedimiento quo se establece a continuacion:
a) Los socios gozaran del derecho al tanto para adquirir, parcial o
totalmente, las partes sociales a ser transmitidas, en proporcion a sus
respectivas
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participaciones en el capital social de la sociedad, en el precio, terminos y
condiciones que se establezcan en el aviso a que se refiere el inciso b)
siguiente.
b) E1 socio interesado en transmitir, parcial o totalmente, nu parte
social (en lo sucesivo el "Socio Transmisor") notificara por escrito a los demas
socios de la sociedad la transmision que se propone llevar al cabo, senalando en
dicha notificacion el nombre y domicilio del adquirente propuesto, la forma de
transmision, el precio y los demas terminos y condiciones a que se sujetara la
transmision propuesta (en lo sucesivo la "Notificacion Original"). Los demas
socios contaran con un plazo de 15 (quince) dias contados a partir de la fecha
en que hubieren recibido la Notificacion original y/o de la fecha en que los
demas socios hubieren autorizado la transmision de conformidad con lo mencionado
en el segundo parrafo de este articulo X, para notificar el Socio Transmisor su
interes en ejercer el derecho al tanto a que se refiere el inciso a) que
antecede.
Si uno o mas socios notifican al Socio Transmisor su interes en
ejercer el derecho al tanto, los socios adquirentes deberan pager el precio y el
Socio Transmisor debera realizar los actos que se requieran para ceder en favor
de los socios adquirentes la parte social de que se trate, de conformidad con
los terminos y condiciones establecidas en la Notificacion Original.
Si uno o mas socios no hubieren ejercitado su derecho al tanto, los
socios que si ejercitaron su derecho el tanto (en lo sucesivo los "Socios
Participantes") tendran una opcion adicional a ser ejercitada en un periodo de
10 (diez) dias contados a partir del
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dia siguiente a la fecha en que se haya vencido el plazo original de 15 (quince)
dias para adquirir, en proporcion a sus respectivas participaciones en el
capital de la sociedad, la porcion de la parte social no adquirida, en el
precio, terminos y condiciones senaladas en la Notificacion Original. Si dicha
opcion es ejercitada, el precio debera ser pagado de conformidad con los
terminos establecidos en la Notificacion Original y el Socio Transmisor debera
realizar los actos que se requieran para ceder en favor de los socios
adquirentes la porcion de la parte social de que se trate. Si un numero menor a
los Socios Participantes ejercitan la opcion antes mencionada, debera repetirse
nuevamente el procedimiento establecido en este parrafo por un periodo adicional
de 10 (diez) dias, durante el cual aguellos Socios Participantes que ejercitaron
la opcion durante el primer periodo de 10 (diez) dias, podran ejercitar una
opcion adicional para adquirir, en proporcion a sus respectivas participaciones,
la porcion remanente de la parte social del Socio Transmisor que no haya sido
adquirida conforme a lo antes mencionado.
Cualquier socio diverso al Socio Transmisor podra ejercer su derecho
al tanto, aun en el caso de que ningun otro socio haya optado por ejercitar su
respectivo derecho. Asimismo, cualquier socio diverso al Socio Transmisor podra
ceder en cualguier momento su derecho al tanto para adquirir partes sociales en
favor de cualquier otro socio o socios.
c) Si los socios diversos al Socio Transmisor deciden no ejercitar
su derecho al tanto conforme a lo senalado en el inciso b) que antecede, el
Socio Transmisor
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tendra el derecho a transmitir su parte social o la porcion no transmitida a los
demas socios, a la persona y en los terminos y condiciones senalados en la
Notificacion Original, estandose en todo caso a lo previsto en el articulo XI
siguiente.
d) Si el Socio Transmisor no realiza la transmision a que se refiere
el inciso c) que antecede en un plazo de 15 (quince) dias contados a partir de
la fecha en que vencio el plazo para que log socios diversos el Socio Transmisor
ejercitaren los derechos mencionados en el inciso b) que antecede, el Socio
Transmisor no podra realizar dicha transmision, salvo que inicie nuevamente el
procedimiento previsto en el inciso b) que antecede.
ARTICULO XI.- En caso de que ningun socio ejercite su derecho al
tanto conforme a lo mencionado en el inciso b) del articulo X que antecede, los
socios diversos al Socio Transmisor tendran el derecho a transmitir su
respectiva parte social al adquirente propuesto por el Socio Transmisor en el
mismo precio, terminos y condiciones que el Socio Transmisor hubiere acordado
con el adquirente propuesto y que se indicaron en la Notificacion Original. Para
efectos de lo anterior, el Socio Transmisor debera notificar a los demas socios
respecto de la transmision propuesta, especificando el nombre y domicilio del
adquirente propuesto, el precio y los demas terminos y condiciones conforme a
las cuales se pretende llevar al cabo la transmision. Cada socio contara con un
plazo de 30 (treinta) dias contados a partir de que reciba la notificacion a que
se refiere este articulo XI para decidir si ejercita su derecho a transmitir
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conjuntamente con el Socio Transmisor la totalidad o una porcion de su parte
social al mismo adquirente al mismo precio, terminos y condiciones especificadas
en la Notificacion Original.
Si un socio ejerce su derecho de transmitir la totalidad o una
porcion de su parte social de conformidad con lo dispuesto en este articulo, el
Socio Transmisor unicamente podra transmitir su parte social al adquirente
propuesto si este acepta adquirir tambien la totalidad o la porcion de la parte
social que elija el socio que ejerza el derecho establecido en este articulo, en
los mismos terminos y condiciones y en el mismo precio que fueron ofrecidos al y
que reciba el Socio Transmisor.
El Socio Transmisor podra transmitir su parte social el adquirente
propuesto en los terminos y condiciones establecidos en la Notificacion Original
cuando: i) ninguno de los socios ejerza su derecho conforme a este articulo; o
ii) uno o varios socios ejerzan su derecho conforme a este articulo y el
adquirente propuesto acepte adquirir sus partes sociales a dichos socios.
Adicionalmente, si el Socio Transmisor no ejerce su derecho de transmitir dentro
de los 30 (treinta) dias posteriores el termino del plazo establecido
anteriormente en este articulo, su derecho prescribira, y dicho socio no podra
transmitir su parte social sin satisfacer y agotar nuevamente el procedimiento
anterior.
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ADMISION DE NUEVOS SOCIOS Y RETIRO
ARTICULO XII.- La admision de nuevos socios requiere del
consentimiento unanime de los socios de la sociedad expresado en la Asamblea
General de Socios.
ARTICULO XIII.- Los socios tendran derecho de retirarse de la
sociedad en cualquier momento, notificando por escrito a la sociedad con 90
(noventa) dias de anticipacion a la fecha prevista para el retiro. En caso de
retiro de un socio, la sociedad amortizara la parte social de dicho socio en un
solo pago o en parcialidades, segun lo determinen la sociedad y el socio que se
retira. Si las partes no llegan a un acuerdo en relacion a la forma de pago, la
Asamblea General de Socios lo determinara.
Los socios dejaran de tener tal caracter al momento de realizarse la
transmision total de su parte social. El precio de venta sera equivalente a la
cuenta de capital positiva del socio en cuestion, fijada al cierre del mes
inmediato anterior a la causa de retiro. A este efecto, las cuentas de capital
de los socios se actualizaran para reflejar el valor de mercado de los activos
de la sociedad. Para efectos de este articulo, el valor de mercado de los
activos de la sociedad sera el que se acuerde entre el socio que se retira y la
Asamblea de Socios. En caso de que el socio que se retira y la Asamblea de
Socios no se pusieren de acuerdo en el valor de mercado de los activos de la
sociedad dentro de los 30 (treinta) dias siguientes a aquel en que debiera
surtir efectos el retiro, entonces dicho socio y la Asamblea de Socios elegiran
cada uno a un valuador
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independiente dentro de los 15 (quince) dias siguientes al cumplimiento del
plazo de 30 (treinta) dias antes previsto. En caso de que los dos valuadores
independientes no se pusieren de acuerdo respecto del valor de mercado de los
activos de la sociedad dentro de los 15 (quince) dias posteriores a la fecha de
su designacion, entonces el valor de mercado determinado por cada uno de los
valuadores independientes se sumara y se dividira entre el numero de valuadores,
considerandose dicho resultado el valor de mercado de los activos de la sociedad
para los efectos de este articulo. Los valuadores independientes deberan ser
consultores o valuadores administrativos, con al menos, 5 (cinco) anos de
experiencia en consultoria y valuacion de negocios similares al de la sociedad.
Los honorarios de los valuadores seran a cargo de cada una de las partes.
GRAVAMENES O GARANTIAS
ARTICULO XIV.- Sera necesario el consentimiento de los demas socios
para que cualquier socio grave o de en garantia sus derechos respecto de su
parte social.
INCREMENTO DEL CAPITAL SOCIAL
ARTICULO XV. - El capital sera susceptible de aumentos por
aportaciones de los socios o mediante la admision d nuevos socios, requiriendose
el consentimiento de los socios qua representen al menos el 75% (setenta y cinco
por ciento) del capital social para aumentar el capital por aportaciones de los
socios, y el consentimiento unanime de los socios par admitir a un nuevo socio
de conformidad con lo establecido en el articulo XII qua antecede.
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Los socios tendran, en proporcion a su participacion en el capital
social de la sociedad, derecho de preferencia para suscribir los aumentos de
capital qua acuerde la Asamblea de Socios, aun en el caso de que hayan de
emitirse nuevas partes sociales. Si alguno de los socios no suscribe su parte
correspondiente en un plazo de 30 (treinta) dias desde la fecha de notificacion
de la resolucion de aumento de capital, los demas socios tendran derecho para
hacer la correspondiente suscripcion y pago en proporcion a su participacion en
el capital social de la sociedad.
Si alguno de los socios no ejerciere su derecho de preferencia
conforme a lo establecido en este articulo XV, el aumento de capital social
unicamente podra ser suscrito y pagado por otro socio, salvo en el supuesto
referido en el articulo XII de estos estatutos, ajustandose en consecuencia los
porcentajes de participacion de los socios en el capital social.
ASAMBLEAS DE SOCIOS
ARTICULO XVI.- La Asamblea de Socios es el organo supremo de la
sociedad. Las Asambleas de Socios se reuniran, previa convocatoria, en el
domicilio social, y por lo menos una vez al ano, dentro de los cuatro meses
siguientes a la clausura de cada ejercicio social. La convocatoria no sera
necesaria si al momento de la votacion
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de un determininad asunto todos los socios se encuentran presentes o
representados en la correspondiente Asamblea de Socios.
CONVOCATORIAS PARA ASAMBLEAS DE SOCIOS
ARTICULO XVII.- El Gerente Unico o, en su caso, el Consejo de
Gerentes expediran convocatoria para la celebracion de Asambleas de Socios a
peticion de cualquier socio. En caso de qua el Gerente Unico o el Consejo de
Gerentes no lo hicieren, el Consejo de Vigilancia debera realizar dicha
convocatoria, y a falta u omision de dicho Consejo, las convocatorias podran ser
realizadas por los socios que representen mas de una tercera parte del capital
social.
Las convocatorias se haran por medio de cartas que se haran llegar a
los socios de la sociedad por correo certificado con acuse de recibo, y tales
convocatorias deberan contener el lugar y la fecha en que se celebrara la
Asamblea, asi como el Orden del Dia y hacerse llegar a cada socio con por lo
menos 7 (siete) dias de anticipacion a la celebracion de la Asamblea de Socios.
Las Asambleas de Socios podrian celebrarse en conferencia
telefonica, en el entendido que todos los socios que participen deberan poder
hablar y ser oidos, con y por los demas socios participantes, requiriendose la
confirmacion de las resoluciones por escrito debidamente firmadas por todos los
socios de la sociedad.
ARTICULO XVIII.- Las Asambleas de Socios seran presididas por el
Gerente Unico o por el Presidente del Consejo de Gerentes, segun sea el caso, y
en su
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ausencia por la persona que sea designada por mayoria de votos de los socios
presentes en la Asamblea que se trate. Actuara como Secretario de la Asamblea el
Secretario del Consejo de Gerentes, y en ausencia de este, el Pro-Secretario del
Consejo de Gerentes. En el evento de que no se encuentren presentes en la
Asamblea tanto el Secretario como el Pro Secretario, o no existiere su
designacion, actuara como Secretario de la Asamblea la persona que sea designada
por mayoria de votos de los socios presentes en la Asamblea. El Presidente
designara a dos de los socios o sus representantes que asistan a la Asamblea,
como escrutadores. Las actas de las Asambleas de Socios seran transcritas en un
Libro de actas que al efecto llevara la sociedad. Las actas deberan ser
firmadas, por lo menos, por las personas que actuen Como Presidente y como
Secretario de la Asamblea.
QUORUM
ARTICULO XIX.- Las Asambleas de Socios podran celebrarse en virtud
de primera o ulterior convocatoria si los socios, o sus representantes, que
representen, por lo menos, el 75% (setenta y cinco por ciento) del capital
social, se encuentran presentes. Sus resoluciones se tomaran por el voto de los
socios que representen, por lo menos, la mayoria del capital social, excepto en
los casos que requieran un porcentaje mayor conforme a estos estatutos.
Tendran derecho a asistir y participar en la Asamblea de Socios
quienes aparezcan inscritos como tales en el Libro Especial que el efecto lleve
la sociedad, de
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conformidad con lo previsto por el articulo 73 de la Ley General de Sociedades
Mercantiles. Los socios podran ser representados en las Asambleas por un
apoderado con poder general o poder especial, o por un apoderado designado por
medio de simple carta poder firmada ante dos testigos.
ARTICULO XX.- Las resoluciones adoptadas fuera de Asamblea de
Socios, por socios que representen el porcentaje del capital social fijado en
estos estatutos como necesario para adopter dichas resoluciones en Asamblea de
Socios, tendran, para todos los efectos legales, la misma validez que si
hubieran sido adoptadas reunidos en Asamblea de Socios, siempre que se confirmen
por escrito, en el entendido de que previamente deberan enviarse a todos los
socios las resoluciones propuestas y debera contarse con evidencia de que dichas
resoluciones fueron efectivamente recibidas por la totalidad de los socios.
ADMINISTRACION
ARTICULO XXI.- La Administracion de la sociedad estara confiada a un
Gerente Unico o a un Consejo de Gerentes, segun lo determine la Asamblea de
Socios. La Asamblea de Socios podra designar a un Gerente o Gerentes Suplentes,
segun sea el caso, si asi lo considera conveniente.
El Gerente Unico o los miembros del Consejo de Gerentes, asi como
sus respectivos suplentes, de ser ese el caso, podran ser socios o personas
extranas a la sociedad; duraran en su cargo un 1 (un) ano. Los socios tendran el
derecho a revocar las
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designaciones en cualquier momento, mediante resolucion adoptada en Asamblea de
Socios.
El numero de Gerentes, que en ningun momento debera ser menor que
uno, podra ser modificado periodicamente por los socios.
En caso de existir dos o mas Gerentes (Consejo de Gerentes) sus
resoluciones deberan ser adoptadas, en todos los casos, mediante consentimiento
mayoritario, de acuerdo a lo previsto por el articulo 75 de la Ley General de
Sociedades Mercantiles.
ARTICULO XXII.- El Gerente Unico o el Consejo de Gerentes, segun sea
el caso, seran los representantes legales de la sociedad y, en consecuencia,
gozaran de las siguientes facultades:
l.- Ejercitar el poder de la sociedad para pleitos y cobranzas, con
todas las facultades generales y las especiales que requieran de clausula
especial de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Civiles de las entidades federativas de los Estados Unidos Mexicanos,
estando por lo tanto facultados para intentar y desistirse de toda clase de
procedimientos, incluyendo el juicio de amparo; formular querellas y denuncias
penales y desistirse de ellas; coadyuvar con el Ministerio Publico y otorgar
perdon; transigir; someterse a arbitraje; formular y absolver posiciones;
recusar jueces; recibir
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pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penales, civiles, administrativos y el trabajo; 2.- Administrar bienes de
acuerdo con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federatiyas de los Estados
Unidos Mexicanos; 3.- Ejecutar actos de dominio de acuerdo con lo previsto en el
tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos; 4.- Suscribir
titulos de credito de conformidad con el articulo noveno de la Ley General de
Titulos y Operaciones de Creditol; 5.- Abrir, operar y cerrar cuentas de la
sociedad con instituciones de creditor, instituciones bursatiles e instituciones
financieras, en el pais y en el extranjero, en moneda nacional y en moneda
extranjera, y designar a las personas que puedan girar contra las mismas; 6.-
Nombrar y remover a funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades; 7.- Formular reglamentos
interiores de trabajo; 8.- Convocar a Asambleas de Socios y ejecutar sus
resoluciones; 9.- Llevar el cabo todos los actos autorizados por estos estatutos
o que sean consecuencia de los mismos; y 10.- Conferir poderes generales y
especiales en los terminos de los parrafos uno, dos, tres, cuatro y cinco
anteriores, con o
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sin facultades de substitucion, asi como revocar los poderes que hubieren sido
otorgados por la sociedad.
ARTICULO XXIII.- El Gerente Unico o el Consejo de Gerentes, segun
sea el caso, asi como sus respectivos suplentes, deberan manejar los asuntos de
la sociedad en forma prudente y de manera practica y eficiente para cumplir con
el objeto de la sociedad contenido en el articulo II de estos estatutos
sociales, debiendo, en consecuencia, realizar las siguientes actividades, en
representacion de la sociedad:
a) Conservar en forma precisa y completa los libros de la sociedad y
aquellos relacionados con los negocios sociales, incluyendo los libros
contables, informacion financiera y todos los avaluos de los activos de la
sociedad elaborados u obtenidos por la sociedad en el curso de los negocios.
Todos los libros y registros deberan estar disponibles durante dias y horas
habiles en la oficina principal o an las demas oficinas donde la sociedad
mantenga su registro, para revision y auditoria por cualquier socio o su
representante legal debidamente autorizado para tal efecto, en el entendido de
que, en todos los casos, los gastos de revision seran a cargo del socio
interesado en la revision;
b) Proporcionar a todos los socios i) reportes financieros auditados
anuales de la sociedad y de las sociedades en que la sociedad tenga una
participacion accionaria o social, dentro de los 90 (noventa) dias posteriores
el cierre de cada ejercicio fiscal; ii) resumenes trimestrales de las
operaciones que contengan la situacion financiera
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y resultados operativos de la sociedad por el trimestre anterior, los cuales
deberan ser proporcionados dentro de los 30 (treinta) dias posteriores al
termino de cada trimestre; y, iii) periodicamente cualquier otra informacion
financiera conforme dicha informacion sea recibida por el Gerente Unico o por el
Consejo de Gerentes, segun sea el caso, y conforme sea necesario para mantener
informados a los socios de los y situacion financiera de la sociedad y de la
situacion financiera de las sociedades en las que la sociedad tenga
participacion o interesy; y
c) Mantener los fondos de la sociedad precisamente a nombre de la
sociedad en una cuenta separada, diversa e independiente de los fondos del
Gerente Unico o de los miembros del Consejo de Gerentes, segun sea el caso.
LIMITES DE AUTORIDAD DEL GERENTE UNICO
O DEL CONSEJO DE GERENTES
ARTICULO XXIV.- Salvo en el caso de que cuenten con el previo
consentimiento unanime o aprobacion de todos los socios, el Gerente Unico o el
Consejo de Gerentes, segun sea el caso, no podran:
a) Ejecutar o realizar cualquier tipo de cesion en beneficio de los
acreedores de la sociedad;
b) Prestar a persona alguna fondos de la sociedad;
c) Declarar en contra de la sociedad;
d) Adquirir nuevas tiendas o abrir nuevos locales;
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e) Adquirir los activos o la propiedad de la mayoria de las acciones
de cualquier negocio;
f) Realizar cualquier acto que impida llevar al cabo en forma
ordinaria los negocios de la sociedad;
g) Admitir a un nuevo socio o socios;
h) Enajenar todos o una parte importante de los activos y
propiedades de la sociedad;
i) Enajenar todos o una parte importante de los activos de cualquier
tienda, local o division de la sociedad;
j) Fusionar o unir a la sociedad con o en otras companias;
k) Disolver, liquidar o terminar los negocios de la sociedad; ni
l) Autorizar la celebracion de contratos o negocios entre la
sociedad y alguno de los socios, que fueren menos favorables para la sociedad
que aquellos que pudieren celebrarse con personas ajenas a la sociedad.
PRESIDENCIA DEL CONSEJO DE GERENTES
ARTICULO XXV.- En el evento de que la sociedad este administrada por
un organo colegiado, la Asamblea de Socios o el Consejo de Gerentes podran
designar anualmente, de entre los miembros del Consejo de Gerentes, al
Presidente de dicho Consejo, quien durara 1 (un) ano en su cargo, pero podra ser
reelecto por periodos anuales sucesivos.
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SECRETARIO Y PRO-SECRETARIO
ARTICULO XXVI.- La Asamblea de Socios o el Consejo de Gerentes
podran designar al Secretario y al Pro-Secretario del Consejo de Gerentes,
quienes podran o no ser socios o Gerentes de la sociedad. El Secretario y el
Pro-Secretario podran ser removidos de sus cargos, en cualquier momento, por la
Asamblea de Socios.
SESIONES DEL CONSEJO DE GERENTES
ARTICULO XXVII.- En caso de haber sido designados dos o mas
Gerentes, se levantara constancia de las resoluciones que adopten los Gerentes
actuando como organo colegiado (Consejo de Gerentes), por mayoria de votos,
mismas que seran asentadas en un acta y deberan ser firmadas por todos los
asistentes.
DURACION DEL CARGO
ARTICULO XXVIII.- El Gerente Unico o los miembros del Consejo de
Gerentes, segun sea el caso, asi como sus respectivos suplentes, desempenaran su
cargo hasta que sus sucesores hayan sido designados y tomen posesion de sus
cargos. El Gerente Unico o los miembros del Consejo de Gerentes, asi como sus
respectivos suplentes, en su caso, podran ser reelectos.
CONSEJO DE VIGILANCIA
ARTICULO XXIX.- La vigilancia de la sociedad podra ser encomendada a
dos o mas Comisarios, quienes podran ser o no socios, y quienes seran designados
por
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la Asamblea de Socios, misma que igualmente determinara las facultades y
obligaciones de los Comisarios.
Los Comisarios desempenaran sus cargos hasta que sus sucesores hayan
sido nombrados y tomen posesion de sus cargos.
UTILIDADES Y RESERVAS
ARTICULO XXX. - Las utilidades netas que se obtengan en un
determinado ejercicio social y que aparezcan de los estados financieros de la
sociedad, debidamente aprobados por la Asamblea de Socios, podran ser
distribuidas de la manera que juzgue conveniente la Asamblea de Socios,
observandose lo dispuesto en el articulo 20 de la Ley General de Sociedades
Mercantiles en cuanto a la integracion del fondo de reserva legal.
DISOLUCION
ARTICULO XXXI.- La sociedad se disolvera on cualquiera de los
siguientes casos;
a) Ante la imposibilidad de cumplir el objeto social de la sociedad.
b) Si la Asamblea de Socios asi lo resuelve por unanimidad de votos.
c) En el caso que el numero de socios exceda de 50 (cincuenta) o si
todas las partes sociales resultaran ser propiedad de una misma persona.
d) En los casos que la ley asi lo determine.
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LIQUIDADORES
ARTICULO XXXII.- Una vez que haya sido decretada la disolucion de la
sociedad, se pondra esta en liquidacion nombrando a los Gerentes como
liquidadores y, el efecto, la Asamblea de Socios que la haya decretado,
determinara la remuneracion que, en su caso, debera pagarseles.
RESPONSABILIDADES DE LOS LIQUIDADORES
ARTICULO XXXIII.- Salvo que la Asamblea de Socios resuelva algo
distinto, los liquidadores tendran las siguientes obligaciones y facultades:
I. Concluir las operaciones sociales que hubieren quedado
pendientes al tiempo de la disolucion
II. Cobrar los adeudos en favor de la sociedad y pagar lo que ella
deba.
III. Vender los bienes de la sociedad.
IV. Liquidar a cada socio su haber social.
V. Practicar el balance final de la liquidacion, que debera
someterse a la discusion y aprobacion de la Asamblea de Socios. El balance
final, una vez aprobado, se depositara en el Registro Publico de la Propiedad y
de Comercio de domicilio social de la sociedad.
VI. Obtener del Registro Publico de la Propiedad y de Comercio del
domicilio social de la sociedad la cancelacion de la inscripcion de la sociedad,
una vez concluida la liquidacion.
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ATRIBUCIONES DE LOS LIQUIDADORES
ARTICULO XXXIV.- Durante el periodo de liquidacion, las Asambleas de
Socios podran ser convocadas por los liquidadores, por el Consejo de Vigilancia,
en su caso, o por los socios que sean titulares de, por lo menos, el 25%
(veinticinco por ciento) del capital social.
Por virtud de su nombramiento, los liquidadores representaran a la
sociedad con facultades para pleitos y cobranzas, actos de administracion y
actos de dominio, sin limitacion alguna, incluyendo todas aquellas facultades
que requieran poder o clausula especial, a menos que la Asamblea de Socios
limite sus facultades y tal limitacion se haga constar expresamente.
TERMINACION
ARTICULO XXXV.- Una vez completada la liquidacion y habiendo
terminado todos los asuntos de la sociedad, esta sera terminada. Los
liquidadores tomaran las acciones necesarias para terminar la sociedad.
ARTICULO XXXVI.- Todo extranjero que en el acto de la constitucion
de la sociedad, o en cualquier tiempo ulterior, adquiera un interes o
participacion social en la sociedad se considerara por ese solo hecho como
mexicano respecto de uno y otra, y se entendera que conviene en no invocar la
proteccion de su gobierno, bajo la pena, en caso de faltar a su convenio, de
perder dicho interes o participacion en beneficio de la Nacion Mexicana."
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CLAUSULA UNICA
El licenciado LUIS ALFONSO CERVANTES MUNIZ, en ejecucion de los
acuerdos tomados en la asamblea extraordinaria que los accionistas de "JAFRA
COSMETICS", SOCIEDAD ANONIMA DE CAPITAL VARIABLE celebraron el treinta de marzo
de mil novecientos noventa y ocho, cuya acta ha sido transcrita en el parrafo
sexto de los antecedentes, consigna por medio de esta escritura;
1. - LA TRANSFORMACION de la sociedad en SOCIEDAD DE RESPONSABILIDAD
LIMITADA DE CAPITAL VARIABLE.
2.- LA REFORMA TOTAL a los estatutos sociales de "JAFRA COSMETICS"
SOCIEDAD DE RESPONSABILIDAD LIMITADA DE CAPITAL VARIABLE, a fin de quedar
redactados en los terminos aprobados por la asamblea extraordinaria cuya acta se
protocoliza y quo se tienen aqui por reproducidos como si se insertasen a la
letra.
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YO, EL NOTARIO, CERTIFICO Y DOY FE:
A. De que lo antes relacionado e inserto concuerda con sus
originates, a que me remito y tuve a la vista.
B. - De que conozco personalmente al compareciente, quien a mi
juicio tiene la capacidad legal necesaria para este acto, pues nada me consta en
contrario.
C.- De que adverti al compareciente de las penas en que incurren
quienes declaran con falsedad ante notario.
D.- De que por sus generales dijo ser: de nacionalidad mexicana por
nacimiento, originario de esta ciudad, donde nacio el dieciseis de noviembre de
mil novecientos cincuenta y cinco, casado, abogado y con domicilio en Campos
Eliseos trescientos cuarenta y cinco, tercer piso, Colonia Chapultepec Polanco,
en esta ciudad.
E.- De qua leida que le fue la presente escritura al compareciente,
habiendole explicado el valor y consecuencias legales de su contenido, manifesto
su conformidad con la misma y la firmo hoy dia quince del mismo mes de su fecha,
quedando AUTORIZADA.
FIRMA: De Luis Alfonso Cervantes Muniz.
MIGUEL ALESSIO ROBLES.- El sello de autorizar. ES PRIMER TESTIMONIO
SACAD DE SU ORIGINAL Y PRIMERO QUE SE EXPIDE PARA "JAFRA COSMETICS" SOCIEDAD DE
RESPONSABILIDAD LIMITADA DE CAPITAL VARIABLE, A FIN DE QUE LE SIRVA DE
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CONSTANCIA. VA EN DOCE HOJAS COTEJADAS Y CORREGIDAS. MEXICO, DISTRITO FEDERAL, A
QUINCE DE ABRIL DE MIL NOVECIENTOS NOVENTA Y OCHO.
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EXHIBIT 3.9(B)
Estatuos Sociales of JAFRA COSMETICS, S. de R.L. de C.V.
Name, Purpose, Domicile and Duration
Article 1. The name of the limited liability company ("LLC") is "Jafra
Cosmetics," which denomination shall always be followed by the words "Sociedad
de Responsabilidad Limitada de Capital Variable," or by their abbreviation "S.
de R.L. de C.V."
Article 2. The purpose of the LLC is:
1. To exercise general commercial powers, including the manufacturing,
marketing and distribution of all classes of products relating to personal care
and hygiene, whether for health-related or beauty-related purposes, as well as
cosmetics, fragrances, jewelry and other personal care products.
2. To create, export, import, acquire, alienate, lease or sublease all
types of commodities, equipment, machinery, and all other implementations
necessary to effectuate the activities described in paragraph 1 above.
3. To acquire shares, interests or participations or make investments in
any other type of business, corporation, organization or association.
4. To sell, transfer, or convey, in any manner prescribed by the laws that
govern business activities relating to shares of a coporation, interests or
participations representing an investment in any type of business, corporation,
organization or association.
5. To receive from other corporations or persons, in a manner consistent
with the practices of other corporations or persons doing the same, any type of
service or services required to achieve the corporate purpose stated herein.
Such services include, but are not limited to, administrative, financial, legal,
marketing and accounting, which includes the preparation of financial reports,
annual or quarterly budgets and manuals that evaluate the operational
performance of the company, the evaluation of productivity and strategies for
financing, and analysis of the availability of capital for investment purposes.
6. To build, rent, sublease, operate or possess, in any manner permitted
by law, offices, factories, studios, stores, plants, warehouses and any other
establishments necessary to carry out the stated corporate purpose, as well as
to acquire and alienate all
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forms of commercial or industrial businesses, including shares or participations
in such businesses.
7. To solicit, obtain, register, purchase, utilize, and dispose of and
acquire in any other form, trademarks, trade names, copyrights, patents,
inventions and processes.
8. To establish branches, subsidiaries, agencies or offices in Mexico or
in any other country.
9. To act as agent, or to represent in any other manner all types of
companies and individuals, within or outside Mexico.
10. To acquire, possess, lease or sublease, purchase or sell, and
negotiate with, in any manner permitted by law real property, including the
acquisition, establishment and operation of experimental laboratories.
11. To offer all types of technical service, administrative consulting and
supervision to industrial and commercial entities, in Mexico and abroad, and to
receive the same services from such other industrial and commercial entities.
12. To supply and receive services for the manufacture of cosmetics
products or to supply and receive processed materials related to such products
from or to all types of commercial and industrial entities.
13. To lend or borrow money by any means, with or without security, and to
issue bonds or other types of obligations, and to carry out acts for the purpose
of obtaining credit. The foregoing shall be carried out in each case under the
supervision and intervention of those institutions whose participation is
required by law.
14. To guarantee obligations of third parties; and
15. In general, to carry out and perform any activiites, civil or
commercial in nature, permitted by law.
Article 3. The domicile of the LLC is Distrito Federal, Mexico. However,
the LLC may establish agencies or branches in any other part of Mexico or a
foreign territory, or designate conventional domiciles for the execution of
specific acts and contracts.
Article 4. The duration of the LLC shall be ninety-nine (99) years,
beginning with the effective date of its incorporation.
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CAPITAL STOCK
Article 5. The capital stock shall be variable. The fixed portion of the
capital, which shall not be subject to withdrawal, is Ps$3,000 (Three Thousand
New Pesos), wholly subscribed and paid, and represented by company shares. The
variable portion of the capital stock shall have no limit and will be
represented by shares in the LLC.
VOTING RIGHTS
Article 6. Each Shareholder of the LLC shall have the right to participate
in the decision- making process during meetings of the LLC members, such voting
right being represented by one vote per each Ps$1.00 (One New Peso) of such
member's share of the capital stock of the LLC.
SHARES IN THE LLC
Article 7. Each Shareholder of the LLC shall be entitled to his/her
respective proportionate share in the LLC. When a member shall hold a new
proportionate share in the LLC or shall acquire the totality or a fraction of
the share in the LLC held by another member, his/her proportionate share in the
LLC shall be augmented according to the provisions of the estatuos.
Article 8. The LLC shall keep a Special Book of Members in which
shall be noted the name and domicile of each Shareholder of the LLC, with
indications as to each member's respective share in the LLC and any transfers in
LLC shares. In order to hold a valid membership in the LLC, it shall be a
requirement that information with respect to such member is inscribed in the
Special Book of Members in the manner prescribed by this Article.
CERTIFICATES OF LLC SHARES
Article 9. Shares in the LLC may be represented by documentation
which, in any case, shall only have evidentiary value, and may not be
transferred. Any such certificate or other documentation shall be signed by two
members of the Board of Directors or by the General Manager, as the case may be.
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TRANSFER OF LLC SHARES
Article 10. Every transfer of LLC shares shall be realized only through
strict adherence to the conditions set forth in Articles 10 and 11 of these
Estatuos:
No member may effect a partial or total transfer of his shares in the LLC
without the prior unanimous consent of all the members of the LLC, such approval
to be further conditioned by the following terms:
(a) The members of the LLC shall have preemptive rights to acquire,
whether in whole or in part, the LLC shares offered to be transferred according
to each member's proportionate share of the total outstanding shares in the LLC.
Such acquisition shall take place according to the prices, terms and conditions
in paragraph (b) below:
(b) Such member of the LLC that is interested in transferring his
shares in the LLC ("Transferring Member") shall make written notification of his
intent to transfer LLC to each member of the LLC, indicating the name and
domicile of the proposed transferee, the form of transfer proposed, the price of
the transfer and any terms and conditions that apply to the transfer ("Original
Notification"). The remaining members of the LLC shall have fifteen (15) days
beginning on the date of receipt of the Original Notification and/or beginning
with the date that authorization is given to the proposed transfer, to exercise
their preemptive rights ("First Preemptive Right") to acquire the LLC shares
offered for transfer.
If one or more members notify the Transferring Member that they are
interested in exercising their preemptive rights, the Transferring Member shall
offer his/her LLC shares to those interested members for the same price, terms
and conditions as specified in the Original Notification.
If one or more members have not exercised their preemptive rights,
those members that have chosen to exercise their preemptive rights
("Participating Members") shall have at their option an additional right
("Second Preemptive Right") to acquire, according to their proportionate shares
in the LLC, that portion of the offered LLC shares that was not previously
acquired during their exercise of the First Preemptive Right. The Second
Preemptive Right must be exercised within a period of ten (10) days beginning
immediately following the original fifteen (15) day period to exercise the First
Preemptive Right. If this option is exercised, the price to be paid for the
additional LLC shares shall conform with the Original Notification. The
aforementioned Second Preemptive Right may be exercised one more time within a
period of an additional ten
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(10) days following the preceding ten (10) day period in the event that not all
Participating Members choose to exercise the Second Preemptive Right.
Any member of the LLC, other than the Transferring Member, shall
have the right to exercise his/her preemptive rights, even if no other member of
the LLC chooses to exercise the same preemptive rights. Furthermore, any member
of the LLC, other than the Transferring Member, shall have the right to assign
his/her preemptive rights at any moment to another member or group of members.
(c) If the members, other than the Transferring Member, elect not to
exercise thier respective preemptive rights as indicated in subparagraph (b)
above, the Transferring Member shall have the right to transfer his shares in
the LLC, or those shares that were not acquired through the exercise of
preemptive rights, to such person proposed to be the transferee of the LLC
shares in the Original Notification.
(d) If the Transferring Member does not effect a transfer in accordance
with subparagraph (c) above within fifteen (15) days immediately following the
fifteen (15) day period during which the other members could have exercised
their preemptive rights, the Transferring Member must follow the procedures set
forth in subparagraph (b) above in order to effect a transfer to a third party.
Article 11. In the event that no member shall exercise preemptive rights
as specified in subparagraph (b) of Article 10, the members of the LLC, other
than the Transferring Member, shall have the right to transfer their respective
shares in the LLC to the proposed acquiror in the Original Notification for the
same price and according to the same terms and conditions specified in such
notification. In order to effect the foregoing right, the Transferring Member
shall undertake to notify each member of the name and domicile of the proposed
acquiror. Each member, other than the Transferring Member, may only effect the
transfer indicated in this Article 11, within thirty (30) days following the
date of Original Notification.
In the event that at least one member, other than the Transferring Member,
exercises the right to transfer his/her LLC to the proposed acquiror, the
Transferring Member shall have the right to transfer his/her LLC shares to the
proposed acquiror if such acquiror agrees to receive the same total or partial
amount of the LLC shares of the Transferring Member that were transferred to the
acquiror by the member electing to exercise his/her transfer option under the
estatuos.
The Transferring Member may transfer his/her shares in the LLC to the
proposed acquiror according the the terms and conditions established in the
Original Notification when (i) no other member elects to exercise his/her
transfer rights under the estatuos or
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(ii) one or more members exercise their rights under the estatuos and the
proposed acquiror agrees to purchase LLC shares from such members. Additionally,
if the Transferring Member does not exercise his transfer right within the
thirty (30) day period described in this Article 11, such transfer right may not
be exercised without following the conditions set forth in the estatuos.
ADMISSION OF NEW MEMBERS (SHAREHOLDERS) AND WITHDRAWAL
Article 12. The admission of a new member to the LLC shall require the
unanimous consent of all the members of the LLC in a General Meeting of LLC
Members.
Article 13. Each member shall have the right to withdraw from the LLC at
any time, with prior written notification at least ninety (90) days in advance
of the date set for withdrawal. In the event of withdrawal of a member of the
LLC, the LLC shall have the right to redeem the LLC shares held by such
withdrawing members by single payment or several payments, according to the
terms decided upon by the LLC and the withdrawing member. If no agreement as to
the terms of withdrawal is reached, such terms shall be designated by a General
Meeting of the LLC Shareholders.
ENCUMBRANCES AND GUARANTIES
Article 14. The consent of all the Shareholders of the LLC shall be
necessary before any member shall choose to encumber his shares in the LLC or
enter into a guaranty agreement using his/her shares in the LLC.
INCREASES IN THE CAPITAL STOCK
Article 15. The capital stock of the LLC may be augmented through
apportionment among the existing members by the vote of at least 75% (seventy
five percent) of the capital stock of the LLC or through the admission of a new
member in accordance with the conditions set forth in Article 12 of the
estatuos.
The members of the LLC shall have a preemptive right to subscribe to any
new LLC shares issued in proportion to their respective share participation in
the LLC. If any member shall not elect to exercise such a preemptive
subscription right within thirty (30)
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days of the date of notification of the resolution to increase the capital stock
of the LLC, all other members shall have the right to subscribe to such
additional shares in accordance with their proportionate share of the capital
stock of the LLC.
MEETINGS OF SHAREHOLDERS
Article 16. The Meetings of the Shareholders shall be the highest branch
of the LLC. Meetings of Shareholders shall take place, with prior convocation,
in the LLC's domicile, at least once a year, within four (4) months following
the close of the fiscal year. A convocation shall not be necessary if at the
time of voting all the shareholders of the LLC are present at the Meeting.
CONVOCATION OF THE MEETING OF SHAREHOLDERS
Article 17. The General Manger or the Board of Mangers, as the case may
be, shall convene a Meeting of the Shareholders at the request of any member of
the LLC. In the event that the General Manager or the Board of Managers do not
convene a Meeting of the Shareholders, the Board of Auditors shall convene the
Meeting of Shareholders, and in the event that the Auditors fail to convene a
Meeting, convocations shall be made by the members representing more than
one-third (1/3) of the capital stock of the LLC.
Meetings shall be convened by means of letters sent by certified mail to
each member of the LLC at least seven (7) days in advance of the date set for
such a Meeting.
Meetings of the Shareholders of the LLC may take place by telephone
conference, as long as all members of the LLC are able to speak and be heard at
the conference, and that such a Meeting is approved in writing by all the
members of the LLC.
Article 18. Meetings of the Members shall be presided over by the Sole
Manager or the President of the Board of Managers, as the case may be, and in
his absence by the person designated by the majority of votes present at such a
meeting.
Additionally, the Board of Directors shall deliver to the Shareholders
audited financial reports of the LLC and of any other entities in which the LLC
has a participatory or shareholder interest within ninety (90) days following
the close of each fiscal year. The Board of Directors shall also supply each
Shareholder with tri-mesterly summaries of financial and operational results of
the LLC.
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SHAREHOLDER ACTIONS
Article 19. The quorum requirement for first or subsequent calls for any
Shareholder Meeting, whether ordinary or extraordinary, shall be seventy-five
percent (75%) of all outstanding voting capital stock of the LLC. All
resolutions shall be validly adopted upon the affirmative vote of at least a
majority of all the outstanding voting stock.
At any meeting, any Shareholder may be represented by an attorney-in-fact
holding a general power of attorney, or by an attorney-in-fact designated by
means of proxy.
Article 20. Written consents in lieu of meeting shall be valid as long as
they conform with the aforementioned quorum and majority voting requirements.
Furthermore, Shareholder meetings may take place by telephone conference as long
as each Shareholder participating has an opportunity to hear all others speak
and to be heard by all others. The designation of a Shareholder meeting by
telephone conference shall require the written approval of all the capital stock
of the LLC.
ADMINISTRATION OF THE LLC
Article 21. The administration of the LLC shall be the responsibility of a
General Manager or a Board of Directors. In any event, each such person shall
serve for a term of one (1) year, unless removed earlier by Shareholder vote.
Article 22. The General Manager or Board of Directors shall have the
following powers:
(a) to exercise the powers of the LLC with respect to protecting its legal
rights through prosecuting and defending civil matters before the courts
and submitting to arbitration.
(b) to manage and oversee the production of goods manufactured by the LLC
according to Article 2554, paragraph 3 of the Mexican Civil Code.
(c) to carry out acts of dominion according to Article 2554, paragraph 3
of the Mexican Civil Code.
(d) to enter into credit agreements in accordance with Article 9 of the
General Law of Credit Operations and Rights.
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(e) to open, operate and close bank accounts in the name of the LLC and to
designate persons who may draw upon those accounts.
(f) to appoint or remove the LLC's president, as well as the power to
appoint and remove officers and employees of the company and to determine
their terms of employment and compensation.
(f) to formulate internal rules and regulations for the workplace.
(g) to call meetings of the Shareholders and to carry out their
resolutions.
Article 23. In the event that there is a Board of Directors, its
resolutions shall be validly adopted upon the affirmative vote of a majority of
the entire Board of Directors. The Board of Directors may act by written consent
in lieu of meeting subject to the same terms and conditions that apply to any
actual meeting.
The Board of Directors, if one exists, shall designate a President,
Secretary and Under-Secretary of the LLC.
LIMITATIONS ON THE AUTHORITY OF DIRECTORS OR GENERAL MANAGER
Article 24. Unless the prior unanimous consent or the approval of the
Shareholders is obtained, the General Manager or the Board of Directors, as the
case may be, may not carry out the following acts:
(a) to make any favorable concessions on behalf of creditors of the LLC.
(b) to lend to any party any or all of the reserve funds of the LLC.
(c) to make any declarations against the interests of the LLC.
(d) to acquire new stores or open new locations.
(e) to obtain a majority interest in another business.
(f) to carry out any acts that would impede the stated objectives of the
LLC.
(g) to admit new Shareholders.
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(h) to alienate all or part of important activities or property of the
LLC.
(i) to alienate all or part of any important stores or divisions of the
LLC.
(j) to merge with another entity.
(k) to disslove, liquidate or terminate the activities of the LLC.
(l) to enter into agreements with a Shareholder of the LLC on terms that
are less favorable than those that could have been obtained if such
agreement was entered into with a third party.
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EXHIBIT 3.10
INSTRUMENTO NUMERO
VEINTINUEVE MIL SEISCIENTOS OCHO
En la Ciudad de Mexico, Distrito Federal, a los dos dias del mes de enero
de mil novecientos noventa y uno.
ROBERTO NUNEZ Y BANDERA, Notario en Ejercicio, Titular de la Notaria
numero Uno de este Distrito, hago constar:
El CONTRATO DE SOCIEDAD que otorgan JAFRA COSMETICS, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, representada por la Licenciada Leticia Navarro Ochoa,
PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada por el Senor Miguel
Angel Castaneda Perez, CALZADA MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, representada por el Senor Gustavo Madrinan Micolta, BRAUN DE
MEXICO Y COMPANIA, DE CAPITAL VARIABLE, representada por el Licenciado Luis
Alfonso Cervantes Muniz, y ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, representada por el Senor Victor Manuel Rocha Duran, en los terminos
de las siguientes declaraciones y clausulas:
DECLARACIONES
I. Los comparecientes me exhiben y agrego al apendice de este protocolo
con el numero de este instrumento y letra "A", el permiso otorgado por la
Secretaria de Relaciones Exteriores, que a la letra dice:
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Un sello: ESTADOS UNIDOS MEXICANOS. SECRETARIA DE RELACIONES EXTERIORES
MEXICO. PERMISO 09062829. EXPEDIENTE 9009065812. FOLIO 130580.
En atencion a la solicitud presentada por el C. LUIS ALFONSO CERVANTES
MUNIZ, esta Secretaria concede el permiso para que al constituir la persona
moral solicitante se utilice la denominacion QUALIFAX SACV.
Este permiso, quedara condicionado a que en la escritura constitutiva se
inserte la clausula de exclusion de extranjeros prevista en el Articulo 30 o el
convenio que senala el Articulo 31, ambos del Reglamento de la Ley para Promover
la Inversion Mexicana y Regular la Inversion Extranjera.
El Notario Publico ante quien se protocolice este permiso, debera dar
aviso a la Secretaria de Relaciones Exteriores dentro de los 90 dias habiles a
partir de la fecha de autorizacion de la escritura sobre el uso del permiso o,
en su caso, del convenio sobre la renuncia a que se hace referencia en el
parrafo que antecede.
Lo anterior se comunica con fundamento en el articulo 27 Constitucional
Fraccion I, 1 de su Ley Organica, 17 de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera y en los terminos del Articulo 28
fraccion V de la Ley Organica de la Administracion Publica Federal.
Este permiso dejara de surtir efectos ni no se hace uso del mismo dentro
de los 90 dias habiles siguientes a la fecha de su expedicion.
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Tlatelolco, D.F., a 19 de Noviembre de 1990.
SUFRAGIO EFECTIVO. NO REELECCION. EL DIRECTOR DE PERMISOS DE ART. 27
CONSTITUCIONAL. LIC. LUIS RICAUD VELASCO (Firmado).
Esto expuesto los comparecientes otorgan:
CLAUSULA UNICA
Los comparecientes constituyen una SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
de acuerdo con la Ley General de Sociedades Mercantiles, la que se regira por
los siguientes:
ESTATUTOS
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO PRIMERO. La denominacion de la sociedad es "QUALIFAX" y debera ir
siempre seguida de las palabras sociedad anonima de capital variable, o de su
abreviatura "S.A. de C.V."
ARTICULO SEGUNDO. El domicilio de la sociedad es el Distrito Federal,
Mexico; sin embargo, podra establecer agencias o sucurasales en cualquier otra
parte de la Republica Mexicana o del estranjero y someterse a domicilios
convencionales.
ARTICULO TERCERO. La sociedad tendra por objeto:
1) La prestacion de todo tipo de servicios, en especial servicios de
manufactura o fabricacion de cosmeticos, articulos de belleza, para el cuidado y
la higiene personal,
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articulos de tocador, ornamentos y articulos de joyeria, a todo tipo de personas
fisicas o morales, comereiantes o no; 2) La prestacion de toda clase de
servicios tecnicos, administrativos o de supervision a negociaciones comerciales
o industriales en Mexico o en el extranjero y recibir tales servicios; 3)
Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrendamiento, en comodato o en subcomodato, adminsitrar, operar o poseer en
cualquier forma permitida por la ley fabricas, plantas industriales, talleres,
laboratorios, almacenes o bodegas, oficinas, tiendas y otros establecimientos y
bienes inmuebles como sea necesario para el logro de su objeto social; 4)
Adquirir, enajenar, importar, exportar, gravar, dar o tomar en arrendamiento y
negociar en cualquier forma con toda clase de bienes muebles; 5) Solicitar,
comprar, vender, dar o tomar en uso, ceder, registrar y adquirir marcas
industriales y de servicios, nombres comerciales, derechos de autor, patentes,
invenciones y procesos, asi como disponer de ellos; 6) Actuar como contratista,
subcontratista, agente o representane y designar subcontratistas, agentes o
representantes; 7) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o mercantiles,
y formar parte de ellas; 8) Representar o ser agente o comisionista de
negociaciones comerciales o industriales nacionales o extranjeras; 9) Dar o
tomar dinero en prestamo con o sin garantia, emitir bonos, valores hipotecarios,
obligaciones y cualquiera otros titulos de credito con la intervencion de las
instituciones senaladas por la ley,y otorgar fianzas o garantias de cualquier
clase respecto de obligaciones contraidas o de titulos
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emitidos o aceptados por la propia sociedad or por terceros; 10) Emitir,
suscribir, aceptar y negociar en cualquier forma con titulos de credito; y 11)
Ejecutar toda clase de actos y celebrar toda clase de contratos permitidos por
la ley.
ARTICULO CUARTO. La sociedad tendra una duracion de noventa y nueve anos
contados a partir de la fecha de su constitucion.
CAPITAL SOCIAL Y ACCIONES
ARTICULO QUINTO. El capital social es variable. El capital fijo sin
derecho a retiro es de DIEZ MILLONES DE PESOS, Moneda Nacional, representado por
Diez Mil acciones ordinarias, nominativas, con valor nominal de MIL PESOS,
Moneda Nacional cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de la
parte fija del capital social que sean propiedad de personas fisicas o morales
cuya inversion se considere como mexicana en los terminos de la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera. Corresponderan
a la Serie "A-1" aquellas acciones representativas de la parte variable del
capital social que sean propiedad de personas fisicas o morales cuya inversion
se considere como mexicana en los terminos de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera.
Corresponderan a la Serie "B" aquellas acciones representativas de la
parte fija del capital social que sean propiedad de personas fisicas o morales
cuya inversion se considere como extranjera en los terminos de la Ley para
Promover la Inversion
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Mexicana y Regular la Inversion Extranjera. Corresponderan a la Serie "B-1"
aquellas acciones representativas de la parte variable del capital social que
sean propiedad de personas fisicas o morales cuya inversion se considere como
extranjera en los terminos de la Ley para Promover la Inversion Mexicana y
Regular la Inversion Extranjera.
En todo caso, la participacion de la inversion extranjera en el capital de
la sociedad habra de sujetarse a las disposiciones aplicables a la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera.
Los certificados provisionales y los titulos definitivos representativos
de las acciones deberan cumplir con los requisitos establecidos en el articulo
ciento veinticinco de la Ley General de Sociedades Mercantiles; podran amparar
una o mas acciones y estaran firmados por dos miembros del Consejo de
Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO SEXTO. Cada aumento o reduccion del capital social, ya sea que
corresponda al capital fijo o a la parte variable, sera decretado por Asamblea
General Extraordinaria de Accionistas, de conformidad con lo dispuesto por la
Ley General de Sociedades Mercantiles.
En los terminos del articulo ciento treinto y dos de la Ley General de
Sociedades Mercantiles, en el caso de aumento de capital los accionistas tendran
derecho preferente para sucribir las acciones representativas del aumento en
proporcion al numero de acciones de que sean titulares.
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Las resoluciones de las Asambleas Generales Extraordinarias de Accionistas
en las que se acuerde aumento de capital seran publicadas en el periodico
oficial del domicilio de la sociedad. Ademas, las mencionadas resoluciones se
notificaran a los accionistas por medio de cartas que se enviaran por correo
certificado con anterioridad a la fecha de su publicacion, a las direcciones que
aparezcan registradas en el Libro de Registro de Acciones de las sociedad. En
caso de que existan accionistas domiciliados en el extranjero, dichas cartas se
enviaran por correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes mencionado
dentro de los quince dias de calendario siguientes a la fecha de publicacion de
la resolucion. Sin embargo, si la totalidad del capital social estuviere
representado en alguna Asamblea que decretase incremento de capital, el periodo
de quince dias de calendario se computara a partir de la fecha de la Asamblea
correspondiente y los accionistas se daran por notificados de la resolucion
desde la fecha de la Asamblea, por lo que la publicacion y notificacion de la
resolucion de incremento de capital no seran necesarias.
ARTICULO SEPTIMO. La sociedad podra adquirir las acciones representativas
de su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extroardinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asamblea General Extraordinaria de Accionistas o, por delegacion
especifica de esta, el Consejo de
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Administracion sujetandose al monto maximo de utilidades repartibles que habra
de ser fijado por la propia Asamblea. Los titulos de las acciones amortizadas
quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO OCTAVO. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de sus puestos; podran ser reelectos y recibiran
las remuneraciones que determine la Asamblea de Accionistas.
ARTICULO NOVENO. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerciera el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
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ARTICULO DECIMO. El Consejo de Administracion o el Administrador Unico, en
su caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones: 1. Ejercitar el poder para pleitos y cobranzas, con
todas las facultades generales y las especiales que requieran de clausula
especial de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de los
Codigos Civiles de las entidades federativas de los Estados Unidos Mexicanos,
estando por lo tanto facultado para desistirse de procedimientos, aun del juicio
de amparo, formular querellas y denuncias penales y desistirse de ellas;
coadyuvar con el Ministerio Publico y otorgar perdon; transigir; someterse a
arbitraje; formular y absolver posiciones; recusar jueces; recibir pagos y
ejectuar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo; 2. Administrar bienes de acuerdo con lo
dispuesto por el segundo parrafo del articulo dos mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos en los
Codigos Civiles de las entidades federativas de los Estados Unidos Mexicanos; 3.
Ejecutar actos de dominio de acuerdo con lo previsto en el tercer parrafo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos de los Codigos Civiles de las entidades
federativas de los Estados Unidos Mexicanos; 4. Suscribir titulos de credito de
conformidad con el articulo
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noveno de la Ley General de Titulos y Operaciones de Credito; 5. Abrir, operar y
cerrar cuentas bancarias a nombre de la sociedad y designar a las personas que
puedan girar contra las mismas; 6. Nombrar y remover al director general y demas
directores, gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades; 7. Formular reglamentos
interiores de trabajo; 8. Convocar Asambleas de Accionistas y ejecutar sus
resoluciones; 9. Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; 10. Conferir poderes generales y especiales
en los terminos de los puntos uno, dos, tres, cuatro y cinco anteriores, con o
sin facultades de substitucion, asi como revocar los poderes que hubieren sido
otorgados.
ARTICULO DECIMO PRIMERO. Cuando la sociedad sea administrada por organo
colegiado el Presidente y el Secretario del Consejo de Administracion seran
designados por la Asamblea de Accionistas o por el Consejo de Administracion, y
tendran las facultades que se les otorguen al ser designados. El Secretario
podra ser o no miembro del Consejo.
ARTICULO DECIMO SEGUNDO. Para que las sesiones del Consejo de
Administracion sean validas se requerira, en todo caso, la asistencia de la
mayoria de sus miembros o de sus respectivos suplentes. El Consejo de
Administracion adoptara sus resoluciones por mayoria de votos de los miembros
presentes en cada Sesion.
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ARTICULO DECIMO TERCERO. El Presidente no tendra voto de calidad en caso
de empate. Si el Presidente o el Secretario no asisten a la Sesion, el cargo
respectivo, para efectos de la Sesion, sera ocupado por el Consejero designado
por mayoria de votos de los miembros presentes. Las actas de Sesiones del
Consejo seran transcritas en un libro especialmente autorizado y seran firmadas
por quienes actuen como Presidente y Secretario de cada Sesion, asi como por
cualquier Consejero que asistiere y deseare hacerlo.
ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los Consejeros y sus respectivos Suplentes,
al tomer posesion, depositaran con la sociedad la cantidad de cien mil pesos,
moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de fianza otorgada
por compania autorizada por igual suma. Los Consejeros o el Administrador Unico,
segun sea el caso, no podran retirar las garantias otorgadas hasta que su
gestion haya sido aprobada por Asamblea de Accionistas. Los directores y demas
funcionarios de la sociedad otorgaran las garantias que determine la Asamblea de
Accionistas o el Consejo de Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO DECIMO QUINTO. La vigilancia de la sociedad estara encomendada a
uno o dos Comisarios, segun lo determine la Asamblea de Accionistas. Se la
Asamblea lo considerare pertinente designara uno o dos Comisarios Suplentes.
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ARTICULO DECIMO SEXTO. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTIMO. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias senaladas
en el articulo decimo cuarto de estos estatutos para los Consejeros y solo
podran retiralras cuando su gestion haya sido aprobada por Asamblea de
Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO DECIMO NOVENO. Las Asambleas de Accionistas se celebraran en el
domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas para
tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y dos
de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas seragn
Ordinarias.
ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas deberan
ser hechas por el Administrador Unico o por el Presidente o el Secretario del
Conejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la Ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos un treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea
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el caso, o los Comisarios, convoquen a Asamblea de Accionistas para tratar los
asuntos especificados en su solicitud. Cualquier accionista titular de una o mas
acciones tendra el mismo derecho en cualquiera de los casos senalados en el
articulo ciento ochenta y cinco de la Ley General de Sociedades Mercantiles. Si
el Administrador Unico o el Presidente o el Secretario del Consejo de
Administracion, segun sea el caso, o los Comisarios, no hicieren la convocatoria
dentro de los quince dias siguientes a la fecha de la solicitud, un Juez de lo
Civil o de Distrito del domicilio de la sociedad hara la convocatoria a peticion
de cualquier accionista interesado, debiendo exhibir sus acciones para tal
efecto, de conformidad con lo previsto por la ley.
ARTICULO VIGESIMO PRIMERO. Las convocatorias para Asambleas se publicaran
en el Diario Oficial de la Federacion o en el periodico oficial del Distrito
Federal, con por lo menos quince dias de anticipacion a la fecha fijada para la
Asamblea. Ademas, las convocatorias se notificaran por carta a los accionistas,
que se enviaran por correo certificado, con anterioridad a la fecha de
publicacion de la convocatoria, a las direcciones que aparezcan en el Libro de
Registro de Acciones de la sociedad. Tratandose de accionistas domiciliados en
el extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran la Orden del Dia y estaran firmadas por quien las
expida.
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ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO VIGESIMO TERCERO. Solo los accionistas que aparezcan inscritos en
el Libro de Registro de Acciones de la sociedad como titulares de una o mas
acciones, seran admitidos en Asambleas.
ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados en
Asambleas por la persona o personas que designen mediante carta poder firmada
ante dos testigos, o por cualquier otra forma de mandato conferido de acuerdo
con la ley.
ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se transcribiran a un
libro especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO VIGESIMO SEXTO. Las Asambleas seran presididas por el
Administrador Unico o por el Presidente del Consejo de Administracion, segun sea
el caso. Sin embargo, en caso de que quien desempene alguno de los cargos
mencionados estuviere ausente, la Asamblea en cuestion sera presidida por la
persona que sea designada por resolucion de la propia Asamblea. El Secretario
del Consejo de Administracion actuara como Secretario de las Asambleas de
Accionistas; sin embargo, en su ausencia, actuara como tal la persona designada
por resolucion de la Asamblea.
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ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran cuando
menos una vez al ano dentro de los cuatro meses siguientes al cierre de cada
ejercicio social. Ademas de los asuntos especificados en la Orden del Dia, la
Asamblea Ordinaria Anual debera discutir, aprobar o modificar el informe del
Consejo de Administracion que incluya los informes y estados financieros a que
se refiere el enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles, tomando en cuenta el dictamen del Comisario o
Comisarios, y adoptar las medidas que juzgue oportunas; designar al
Administrador Unico a los miembros del Consejo de Administracion, segun sea el
caso, y al Comisario o Comisarios, asi como, determinar las remuneraciones al
Administrador Unico o a los miembros del Consejo de Administracion y a los
Comisarios.
ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas Ordinarias
de Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO VIGESIMO NOVENO. Para que sean validas las Asambleas
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan reunir,por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la
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Asamblea so considerara legalmente instalada si estuviere presente, cuando
menos, el cincuenta por ciento de las acciones representativas del capital
social.
ARTICULO TRIGESIMO. Tratandose de Asambleas Ordinarias, las resoluciones
en ellas adoptadas seran validas cuando se emita voto favorable por la mayoria
de las acciones presentes, siempre y cuando hubiere existido quorum de presencia
en los terminos del articulo vigesimo octavo de los estatutos sociales.
ARTICULO TRIGESIMO PRIMERO. En el caso de Asambleas Extraordinarias, sus
resoluciones seran validas cuando sean adoptadas por el voto favorable de las
acciones que representen, cuando menos, el cincuenta por ciento de las acciones
que integren el capital social.
INFORMACION FINANCIERA
ARTICULO TRIGESIMO SEGUNDO. Dentro de los cuatro meses siguientes al
cierre de cada ejercicio social, el Administrador Unico o el Consejo de
Administracion, en su caso, formulara los siguientes estados financieros, los
que deberan contener toda la informacion que sea necesaria para reflejar el
estado que guarda la situacion financiera y oeprativa de la sociedad, en
terminos del enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los resultados
de la sociedad durante el ejercicio;
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c) Estado que muestre los cambios en la situacion financiera ocurridos
durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el capital
contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados financieros
anteriores.
ARTICULO TRIGESIMO TERCERO. Los estados financieros, junto con los
documentos justificativos, deberan ser entregados al Comisario o Comisarios con
un mes de anticipacion, cuando menos, a la fecha fijada para la Asamblea General
Anual Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO TRIGESIMO CUARTO. Dentro de los quince dias siguientes a la fecha
en que les hayan sido entregados los estados financieros, los Comisarios deberan
presentar al Adminsitrador Unico o al Consejo de Administracion, segun sea el
caso, un informe respecto de la veracidad, suficiencia y razonabilidad de la
informacion que les haya sido presentada por el Consejo de Administracion o por
el Administrador Unico.
Dichos documenos quedaran en poder del Administrador Unico o del Consejo
de Administracion, segun sea el caso, disposicion de los accionistas, para su
revision, por lo menos durante los quince dias anteriores a la fecha senalada
para la Asamblea Ordinaria Anual de Accionistas.
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Los estados financieros, una vez aprobados, deberan mandarse publicar y
depositar, en la forma y terminos previstos en el articulo ciento setenta y
siete de la Ley General de Sociedades Mercantiles.
ARTICULO TRIGESIMO QUINTO. Las utilidades netas de cada ejercicio social
seran distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
2) El saldo de las utilidades netas se aplicara segun lo determine la
Asamblea General Ordinaria de Accionistas.
ARTICULO TRIGESIMO SEXTO. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva, y si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada
unicamente hasta el pago del valor nominal de sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO TRIGESIMO SEPTIMO. La sociedad se disolvera en cualquiera de los
supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra en
liquidacion. La liquidacion se encomienda a uno o mas liquidadores designados
por Asamblea Extraordinaria de Accionistas. Si la Asamblea no hiciere la
designacion
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correspondiente la hara un Juez de lo Civil o de Distrito del domicilio de la
sociedad a solicitud de cualquier accionista.
ARTICULO TRIGESIMO OCTAVO. En ausencia de instrucciones expresas en
contrario dadas a los liquidadores por la Asamblea, la liquidacion se llevara a
cabo de acuerdo con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos perjudicial
para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance general de liquidacion;
5) Distribucion del remanente, se lo hubiere, entre los accionistas, en
proporcion al numero de sus acciones.
DISPOSICIONES GENERALES
ARTICULO TRIGESIMO NOVENO. Los socios fundadores, como tales, no se
reservan participacion alguna.
ARTICULO CUADRAGESIMO. En los terminos del articulo treinta y uno del
Reglamento de la Ley para Promover la Inversion Mexicana y Regular la Inversion
y para cumplir con la condicion a que se refiere el permiso otorgado por la
Secretaria de Relaciones Exteriores que ha sido transcrito en este instrumento,
los otorgantes se obligan formalmente a que todo extranjero que, en el acto de
la constitucion o en
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cualquier tiempo ulterior, adquiera un interes o participacion social en la
sociedad, se considerara por ese simple hecho como mexicano respecto de uno y
otra, asi como respecto de los bienes, derechos, concesiones, participaciones o
intereses de los que llegue a ser titular esta sociedad, o bien de los derechos
y obligaciones que deriven de los contratos en que sea parte y por lo tanto a no
invocar la proteccion de sue gobierno, bajo la pena, en caso de faltar a su
convenio, de perder dicho interes o participacion en beneficio de la Nacion
Mexicana.
DISPOSICIONES TRANSITORIAS
PRIMERA. Las acciones en que se divide el capital minimo de la sociedad,
han sido integramente suscritas y pagadas en la siguiente forma:
ACCIONISTAS ACCIONES CAPITAL
----------- -------- -------
JAFRA COSMETICS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE,
suscribe nueve mil novecien tas noventa
y seis acciones con valor nominal de mil
pesos cada una, que paga en dinero
efectivo .......................................... 9,996 $9,996,000.00
PLUMIBOL, SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, suscricribe
una accion con valor nominal de mil
pesos, que paga en dinero efectivo ................ 1 $ 1,000.00
CALZADA MARIANO ESCOBEDO
151-155, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con
valor nominal de mil pesos,
que paga en dinero efectivo ....................... 1 $ 1,000.00
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BRAUN DE MEXICO Y COMPANIA,
DE CAPITAL VARIABLE, suscribe
una accion con valor nominal de mil
pesos, que paga en dinero efectivo ............. 1 $ 1,000.00
ORAL-B LABORATORIOS,
SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con
valor nominal de mil pesos, que paga en
dinero efectivo ................................ 1 $ 1,000.00
TOTAL: ................................... 10,000 $10,000,000.00
SECUNDA. Se designan como Administrador Unico y Administrador Unico
Suplente de la Sociedad a los Senores Leticia Navarro Ochoa y Luis Rosas Monroy,
respectivamente.
TERCERA. Se designan como Funcionarios de la Sociedad a las siguientes
personas:
Licenciado Miguel Angel Castaneda Perez Director de Finanzas
Licenciado Eduardo Hurtado Badiola Director de Relaciones Industriales
Licenciado Nemesio Garcia Naranjo Sub-Director de Relaciones Industriales
CUARTA. Se designan como Comisario y Comisario Suplente de la sociedad a
los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez Islas,
respectivamente.
QUINTA. Los Administradores, Funcionarios y Comisarios designados han
aceptado sus cargos y tienen caucionado su manejo.
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SEXTA. Se otorga en favor de los Senores Leticia Navarro Ochoa y Luis
Rosas Monroy, para que lo ejerciten conjunta o separadamente, poder general con
todas las facultades a que refiere el articulo decimo de los estatutos sociales.
SEPTIMA. Se otorga en favor del Senor Licenciado Miguel Angel Castaneda
Perez, en su caracter de Director de Finanzas, poder general con las siguientes
facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo, fomular
querellas y denuncias penales y otorgar perdon; transigir, comprometer en
arbitros, absolver y articular posiciones, recusar jueces, recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion;
c) Suscribir titulos de credito en nombre de la sociedad en terminos del
articulo noveno de la Ley General de Titulos y Operaciones de Credito, asi como
para abrir y operar cuentas bancarias, cuentas con instituciones bursatiles y
cualquier otro tipo de
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cuentas en las que se depositen o inviertan fondos de la sociedad, en el pais y
en el extranjero, en moneda nacional y en moneda extranjera, incluyendo
facultades para girar instrucciones para la disposicion de fondos asi como para
designar a personas facultades tambien para girar tales instrucciones; y
d) Para otorgar y revocar poderes en terminos de los parrafos a) y b) que
anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
OCTAVA. Se otorga en favor de los Licenciados Eduardo Hurtado Badiola y
Nemesio Garcia Naranjo, en su caracter de Director de Relaciones Industriales y
SubDirector de Relaciones Industriales respectivamente, para que lo ejerciten
conjunta o separadamente, poder general con las siguientes facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultados para desistirse aun del juicio de amparo,
formular querllas y denuncias penales y otorgar perdon; transigir, comprometer
en arbitros, absolver y articular posiciones, recusar jueces, recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo;
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b) Administrar bienes, en los terminos del parrafo segundo del articulo
dos mil quinientos cincuienta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion; y
c) Para otorgar y revocar poderes en terminos de los parrafos a) y b) que
anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
NOVENA. Se otorga en favor de los licenciados Juan M. Steta Torres, Manuel
Vera Vallejo, German Muggenburg y Rodriguez Vigil y Luis Alfonso Cervantes
Muniz, para que lo ejerciten conjunta o separadamente, poder general para
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal y sus
correlativos de los Codigos Civiles de los demas Estados de la Republica en
donde se ejercite el mandato.
PERSONALIDAD
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL ANGEL
CASTANEDA EPREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO CERVANTES
MUNIZ Y VICTOR MANUEL ROCHA DURAN, acreditan su personalidad en la siguiente
forma:
a) La LICENCIADA LETICIA NAVARRO OCHOA, con la escritura numero
veintinueve mil doscientos veinticuatro, otorgada en esta Cuidad, el once de
octubre de
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mil novecientos noventa, ante el suscrito Notario, JAFRA COSMETICS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas celebrada
el treinta y uno de agosto de mil novescientos ochenta y nueve, la designo
Director General y con tal caracter le otorgo poder general para pleitos y
cobranzas y para actos de administracion, sin limitacion alguna, en los terminos
de los dos primeros parrafos del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de los
Codigos Civiles de los demas Estados de la Republica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
b) El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, con la escritura numero
veintinueve mil doscientos veintiocho, otorgada en esta Cuidad, el once de
octubre de mil novecientos noventa, ante el suscrito Notario, PLUMIBOL, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas celebrada
el veintiocho de febrero de mil novescientos noventa, lo designo Director de
Finanzas y con tal caracter le otorgo poder general para pleitos y cobranzas y
para actos de administracion, sin limitacion alguna, en los terminos de los dos
primeros parrafos del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil en vigor en el Distrito Federal, y sus correlativos de los Codigos Civiles
de los demas Estados de la Republica en donde se ejercite el mandato, y facultad
expresa para otorgar poderes y revocarlos.
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c) El SENOR GUSTOVO MADRINAN MICOLTA, con la escritura numero veintinueve
mil quinientos noventa y tres, otorgada en esta Cuidad, el veintiuno de
diciembre de mil novecientos noventa, ante el suscrito Notario, CALZADA MARIANO
ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la
Asamblea de Accionistas celebrada el veintiocho de diciembre de mil novecientos
ochenta y nueve le otorgo poder general para pleitos y cobranzas y para actos de
administracion, sin limitacion alguna, en los terminos de los dos primeros
parrafos del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil en
vigor en el Distrito Federal, y sus correlativos de los Codigos Civiles de los
demas Estados de la Republica en donde se ejercite el mandato, y facultad
expresa para otorgar poderes y revocarlos.
d) El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, con la escritura numero
ciento diecinueve mil setecientos diez, otorgada en esta Ciudad, el dieciocho de
febrero de mil novecientos ochenta y ocho, ante el Notario numero seis del
Distrito Federal, Licenciado Fausto Rico Alvarez, BRAUN DE MEXICO Y COMPANIA, DE
CAPITAL VARIABLE, por acuerdo de la Asamblea de Socios celebrada el cuatro de
diciembre de mil novecientos ochenta y siete, le otorgo poder general para
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal, y facultad
expresa para otorgar poderes y revocarlos.
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Dicha escritura fue inscrita en el Registro Publico de la Propiedad de esta
Captial, en el Folio Mercantil numero siete mil trescientos treinta y cuatro.
e) EL SENOR VICTOR MANUEL ROCHA DURAN, con la escritura numero diez mil
doscientos setenta y tres, otorgada en esta Ciudad, el veinticinco de septiembre
de mil novecientos noventa, ante el Notario numero ciento setenta y nueve del
Distrito Federal, Licenciado Juan Vicente Matute Ruiz, ORAL-B LABORATORIOS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo tomado en sesion del Consejo
de Administracion celebrada el seis de septiembre de mil novecientos noventa, lo
designo Director de Finanzas, y con tal caracter le otorgo poder general para
pleitos y cobranzas y para actos de administracion, sin limitacion alguna, en
los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal, facultad
para suscribir titulos de credito en los terminos del articulo noveno de la Ley
General de Titulos y Operaciones de Credito, y facultad expresa para otorgar
poderes y revocarlos.
En dichas escrituras quedo debidamente acredita la constitucion y
capacidad legal de las sociedades mandantes.
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL ANGEL
CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO CERVANTES
MUNIZ Y VICTOR MANUEL ROCHA DURAN, declaran bajo protesta de decir verdad que
los poderes que ejercitan
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no les han sido revocados ni modificados en forma alguna y que sus respectivas
representadas tienen capacidad legal.
GENERALES
Los comparacientes declaran por las suyas ser:
La LICENCIADA LETICIA NAVARRO OCHOA, originaria de Colima, Colima, que
nacio el diez de noviembre de mil novecientos cincuenta y tres, mexicana por
nacimiento, hija de padres mexicanos, casada, licenciada en administracion de
empresas, con domicilio en Alberto Zamora numero ochenta y cuatro, Coyoacan, en
esta Ciudad.
El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, originario de esta Ciudad, que
nacio el veintisiete de septiembre de mil novecientos cuarenta, mexicano por
nacimiento, hijo de padres mexicanos, casado, ejecutivo, con domicilio en
Plazuela de Monte Alegre numero ciento nueve, colonia Lomas de la Herradura,
Estado de Mexico.
El SENOR GUSTAVOMADRINAN MICOLTA, originario de Cali, Colombia, que nacio
el dieciocho de abril de mil novecientos cuarenta y uno, colombiano, casado,
director de manufactura, con domicilio en Paseo de la Reforma numero dos mil
doscientos treinta y tres, departamento doscientos dos, colonia Lomas de
Chapultepec, en esta Ciudad, y acredita su legal estancia en el Pais con la
libreta FM DOS numero doscientos cincuenta y seis mil cuatrocientos ochenta y
cinco, expedida el cuatro de junio de mil novecientos noventa, en la que tiene
reconocido el caracter de inmigrante.
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El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, originario de esta Cuidad, que
nacio el dieciseis de noviembre de mil novecientos cincuenta y cinco, mexicano
por nacimiento, hijo de padres mexicanos, casado, abogado, con domicilio en
Campos Eliseos numero trescientos cuarenta y cinco, tercer piso, colonia
Chapultepec Polanco, en esta Ciudad.
El SENOR VICTOR MANUEL ROCHA DURAN, originario de esta Ciudad, que nacio
el dos de septiembre de mil novecientos cuarenta y cinco, mexicano por
nacimento, hijo de padres mexicanos, casado, director de finanzas, con domicilio
en La Joya numero treinta y cuatro, casa veintiuno, Tepepan, Tlalpan, en esta
Ciudad.
YO, EL NOTARIO, DOY FE Y CERTIFICO:
a) Que conozco personalmente a los comparecientes quienes a mi juicio
tienen capacidad legal por no constarme nada en contrario.
b) Que les fue leida integramente la presente escritura.
c) Que a los comparecientes les explique el valor y las consecuencias
legales del contenido de esta escritura y les informe de las penas en que
incurren quienes declaran con falsedad ante Notario, con excepcion del
LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, por ser perito en derecho.
d) Que lo relacionado e inserto concuerda con sus originales a que me
remito y tuve a la vista.
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e) Que los comparecientes manifestaron al suscrito Notario su conformidad
con esta escritura, para constancia de lo cual la firman el dia de su fecha.
Firma de la Licenciada Leticia Navarro Ochoa.
Firma del Senior Miguel Angel Castaneda Perez.
Firma del Senor Gustavo Madrinan Micolta.
Firma del Licenciado Luis Alfonso Cervantes Muniz.
Firma del Senor Victor Manuel Rocha Duran.
Ante mi. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F. Estados
Unidos Mexicanos.
Autorizo definitivamente en Mexico a trece de febrero de mil novecientos
noventa y uno. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F. Estados
Unidos Mexicanos.
NOTAS MARGINALES
NOTA PRIMERA MEXICO A ONCE DE ENERO DE MIL NOVECIENTOS NOVENTA Y UNO CON
ESTA FECHA SE DIO AVISO A LA SECRETARIA DE RELACIONES EXTERIORES EN LOS TERMINOS
DE LOS ARTICULOS 31 PARRAFO 3 Y 32 FRACCION II, PARRAFO 4 DEL REGLAMENTO DE LA
LEY PARA PROMOVER LA INVERSION MEXICANA Y REGULAR LA INVERSION
30
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EXTRANJERA, QUE SE RECIBIO CON EL NUMERO 3118 COPIA DEL CUAL SE AGREGA AL
APENDICE DE ESTE INSTRUMENTO CON LA LETRA B. DOY FE. NUNEZ. FIRMADO.
NOTA SEGUNDA MEXICO A TRECE DE FEBRERO DE MIL NOVECIENTOS NOVENTA Y UNO
CON ESTA FECHA SE AGREGA AL APENDICE DE ESTA ESCRITURA EL AVISO DE INSCRIPCION
EN EL REGISTRO FEDERAL DE CONTRIBUYENTES RELATIVO A ESTA SOCIEDAD CON LA CLAVE
QUA-910102489. DOY FE. NUNEZ. FIRMADO.
ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO CIVIL.
En todos los poderes generales para pleitos y cobranzas bastara que se
diga que se otorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley para que se entiendan conferidos
sin limitacion alguna.
En los poderes generales para administrar bienes, bastara espresar que se
dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que se
den con ese caracter para que el apoderado tenga toda clase de facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mencionados, las
facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
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Los notarios insertaran este articulo en los testimonios de los poderes
que otorguen.
ES PRIMER TESTIMONIO QUE SE EXPIDE PARA QUALIFAX, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE A FIN DE QUE LE SIRVA PARA ACREDITAR SU CONSTITUCION.
VA EN DOCE FOJAS CORREGIDAS.
MEXICO, DISTRITO FEDERAL A DIECINUEVE DE FEBRERO DE MIL NOVECIENTOS
NOVENTA Y UNO. DOY FE.
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EXHIBIT 3.10(A)
LIBRO NUMERO NOVENTA Y SIETE
ESCRITURA NUMERO (3,447) TRES MIL
CUATROCIENTOS CUARENTA Y SIETE.
EN MEXICO, DISTRITO FEDERAL, a los veintiocho dias del mes de abril de mil
novecientos noventa y cinco, Yo, el Licenciado CARLOS ANTONIO REA FIELD, titular
de la Notaria ciento ochenta y siete del Distrito Federal, hago constar que ante
mi comparecen: los senores Licenciados ALEJANDRO SAINZ ORANTES y LUIS ALFONSO
CERVANTES MUNIZ, ambos en su caracter de Delegados Especiales de "QUALIFAX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y exponen que formalizan:
LA PROTOCOLIZACION PARCIAL DE UN ACTA DE ASAMBLEA GENERAL ORDINARIA ANUAL
Y EXTRAORDINARIA DE ACCIONISTAS de la expresada Sociedad;
LA PROTOCALIZACION DE LOS NUEVOS ESTATUTOS SOCIALES de la referida
Sociedad;
EL OTORGAMIENTO DE PODERES GENERALES derivados de dicha acta que se
protocoliza;
Actos que se contienen en los antecedentes y clausulas siguientes:
<PAGE>
A N T E C E D E N T E S
I.
ESCRITURA CONSTITUTIVA.
Por escritura numero veintinueve mil seiscientos ocho, de fecha dos de
enero de mil novecientos noventa y uno, otorgada ante el Licenciado Roberto
Nunez y Bandera, titular de la Notaria uno del Distrito Federal, inscrito su
primer testimonio en el Registro Publico de la Propiedad y de Comercio de esta
ciudad, el veinticinco de junio de mil novecientos noventa y uno, en el folio
mercantil ciento cuarenta y cinco mil cuatrocientos cincuenta y uno, instrumento
por el que previo permiso concedido por la Secretaria de Relaciones Exteriores
marcado con el numero cero nueve millones sesenta y dos mil ochocientos
veintinueve, en el expediente numero nueve mil nueve millones sesenta y cinco
mil ochocientos doce, se constituyo "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, con domicilio en el Distrito Federal, una duracion de NOVENTA Y NUEVE
ANOS, con clausula de admision de extranjeros. De la escritura que se viene
relacionando copio en lo conducente lo siguiente:
"ESTATUTOS. OBJETO. ARTICULO TERCERO. La sociedad tendra por objeto: 1) La
prestacion de todo tipo de servicios, en especial servicios de manufactura o
fabricacion de cosmeticos, articulos de belleza, para el cuidado y la higiene
personal, articulos de tocador, ornamentos y articulos de joyeria, a todo tipo
de personas fisicas o morales, comerciantes o no; 2) La prestacion de toda clase
de servicios tecnicos,
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administrativos o de supervision a negociaciones comerciales, o industriales de
Mexico o en el extranjero y recibir tales servicios; 3) Adquirir, establecer,
disponer de, dar o tomar en arrendamiento o subarrendamiento, en comodato o en
subcomodato, administrar, operar o poseer en cualquier forma permitida por la
ley fabricas, plantas industriales, talleres, laboratorios, almacenes o bodegas,
oficinas, tiendas y otros establecimientos y bienes inmuebles como sea necesario
para el logro de su objeto social; 4) Adquirir, enajenar, importar, exportar,
gravar, dar o tomar en arrendamiento y negociar en cualquier forma con toda
clase de bienes muebles; 5) Solicitar, comprar, vender, dar o tomar en uso,
ceder, registrar y adquirir marcas industriales y de servicios, nombres
comerciales, derechos de autor, patentes, invenciones y procesos, asi como
disponer de ellos; 6) Actuar como contratista, subcontratista, agente o
representante y designar subcontratistas, agentes o representantes; 7) Adquirir
acciones, participaciones, partes de interes y obligaciones de toda clase de
empresas o sociedades, sean civiles o mercantiles, y formar parte de ellas; 8)
Representar o ser agente o comisionista de negociaciones comerciales o
industriales nacionales o extranjeros; 9) Dar o tomar dinero en prestamo con o
sin garantia, emitir bonos, valores, hipotecarios, obligaciones y cualquiera
otros titulos de credito con la intervencion de las instituciones senaladas por
la ley, y otorgar fianzas o garantias de cualquier clase respecto de
obligaciones contraidas o de titulos emitidos o aceptados por la propia sociedad
o por terceros; 10) Emitir, suscribir, aceptar
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y negociar en cualquier forma con titulos de credito; y 11) Ejecutar toda clase
de actos y celebrar toda clase de contratos permitidos por la ley.
CAPITAL SOCIAL Y ACCIONES. ARTICULO QUINTO. El capital social es variable.
El capital fijo sin derecho a retiro es de DIEZ MILLONES DE PESOS, Moneda
Nacional, representado por Diez Mil acciones ordinarias nominativas, con valor
nominal de MIL PESOS, Moneda Nacional cada una.
ADMINISTRACION DE LA SOCIEDAD. ARTICULO OCTAVO. La administracion de la
sociedad estara confiada a un Administrador Unico o a un Consejo de
Administracion formado por el numero de miembros que determine la Asamblea de
Acccionistas. Si la Asamblea lo considera pertinente, podra designar un
Administrador Unico Suplente o a Consejeros Suplentes, segun sea el caso. Los
Consejeros y sus Suplentes podran ser o no accionistas; desempenaran sus cargos
hasta que las personas designadas para substituirlos tomen posesion de sus
puestos; podran ser reelectos y recibiran las remuneraciones que determine la
Asamblea de Accionistas.
ARTICULO DECIMO. El Consejo de Administracion o el Administrador Unico, en
su caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las
facultades generales y las especiales que requieran de clausula especial
de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del
4
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articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos de los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos, estando por lo
tanto facultado para desistirse de procedimientos, aun del juicio de
amparo, formular querellas y denuncias penales y desistirse de ellas;
coadyuvar con el Ministerio Publico y otorgar perdon; transigir; someterse
a arbitraje; formular y absolver posiciones; recusar jueces; recibir pagos
y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y
tribunales penales, civiles, administrativos y del trabajo;
2. Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos;
3. Ejecutar actos de dominio de acuerdo con lo previsto en el tercer
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos;
4. Suscribir titulos de credito de conformidad con el articulo
noveno de la Ley General de Titulos y Operaciones de Credito;
5
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5. Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad
y designar a las personas que puedan girar contra las mismas;
6. Nombrar y remover al director general y demas directors,
gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades;
7. Formular reglamentos interiores de trabajo;
8. Convocar Asambleas de Accionistas y ejecutar sus resoluciones;
9. Llevar acabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos;
10.Conferir poderes generales y especiales en los terminos de los
puntos uno, dos, tres, cuatro y cinco anteriores, con o sin facultades de
substitucion, asi como revocar los poderes que hubieren sido otorgados.
ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos el
Administrador Unico o, en su caso, los Consejeros y sus respectivos Suplentes,
al tomar posesion, depositaran con la sociedad; la cantidad de cien mil pesos,
moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de fianza otorgada
po compania autorizada por igual suma. Los Consejeros o el Administrador Unico,
segun sea el caso, no podran retirar las garantias otorgadas hasta que su
gestion haya sido aprobada por Asamblea de Accionistas. Los directores y demas
funcionarios de la sociedad otorgaran
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las garantias que determine la Asamblea de Accionistas o el Consejo de
Administracion que los designe.
VIGILANCIA DE LA SOCIEDAD. ARTICULO DECIMO QUINTO. La vigilancia de la
sociedad estara encomendada a uno o dos Comisarios, segun lo determine la
Asamblea de Accionistas. Si la Asamblea lo considerare pertinente designara uno
o dos Comisarios Suplentes.
ARTICULO DECIMO SEXTO. Los Comisarios no necesitan ser accionistas de la
sociedad; podran ser reelectos y desempenaran su cargo hasta que las personas
designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTIMO. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias senaladas
en el articulo decimo cuarto de estos estatutos para los Consejeros y solo
podran retirarlas cuando su gestion haya sido aprobada por Asamblea de
Accionistas.
ASAMBLEAS DE ACCIONISTAS. ARTICULO DECIMO NOVENO. Las Asambleas de
Accionistas se celebraran en el domicilio de la sociedad. Seran Extraordinarias
las Asambleas convocadas para tratar cualquiera de los asuntos incluidos en el
articulo ciento ochenta y dos de la Ley General de Sociedades Mercantiles. Todas
las demas Asambleas seran Ordinarias.
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ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas deberan
ser hechas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la Ley, por el Comisario o Comisarios.
Cualquier accionista titular de una o mas -- acciones tendra el mismo
derecho en cualquiera de los casos senalados en el articulo ciento ochenta y
cinco de la Ley General de Sociedades Mercantiles. Si el Administrador Unico o
el Presidente o el Secretario del Consejo de administracion, segun sea el caso,
o los Comisarios, no hicieren la convocatoria dentro de los quince dias
siguientes a la fecha de la solicitud, un Juez de lo Civil o del Distrito del
domicilio de la sociedad hara la convocatoria a peticion de cualquier accionista
interesado, debiendo exhibir sus acciones para tal efecto, de conformidad con lo
previsto por la ley.
ARTICULO VIGESIMO PRIMERO. Las convocatorias para Asambleas se publicaran
en el Diario Oficial de la Federacion o en el periodico oficial del Distrito
Federal, con por lo menos quince dias de anticipacion a la fecha fijada para la
Asamblea. Ademas, las convocatorias se notificaran por carta a los accionistas,
que se enviaran por correo certificado, con anterioridad a la fecha de
publicacion de la convocatoria, a las direcciones que aparezcan en el Libro de
Registro de acciones de la sociedad. Tratandose de accionistas domiciliados en
el extranjero, dichas cartas se enviaran por
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correo aereo certificado. Las convocatorias contendran la Orden del Dia y
estaran firmadas por quien las expida.
ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO VIGESIMO TERCERO. Solo los accionistas que aparezcan inscritos en
el Libro de Registro de Acciones de la Sociedad como titulares de una o mas
acciones, seran admitidos en Asambleas.
ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados en
Asambleas por la persona o personas que designen mediante carta poder firmada
ante dos testigos, o por cualquier otra forma de mandato conferido de acuerdo
con la ley.
ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se transcribiran a un
libro especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO VIGESIMO SEXTO. Las Asambleas seran presididas por el
Administrador Unico o por el Presidente del Consejo de Administracion, segun sea
el caso. Sin embargo, en caso de que quien desempene alguno de los cargos
mencionados estuviere ausente, la Asamblea en cuestion sera presidida por la
persona que sea designada por resolucion de la propia Asamblea. El Secretario
del Consejo de
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Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran cuando
menos una vez al ano dentro de los cuatro meses siguientes al cierre de cada
ejercicio social . . . designar al Administrador Unico a los miembros del
Consejo de Administracion, segun sea el caso, y al Comisario o Comisarios, asi
como, determinar las remuneraciones al Administrador Unico o a los miembros del
Consejo de Administracion y a los Comisarios.
ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas Ordinarias
de Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO VIGESIMO NOVENO. Para que sean validas las Asambleas
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan reunir, por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la Asamblea se considerara legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social.
ARTICULO TRIGESIMO. Tratandose de Asambleas Ordinarias, las resoluciones
en ellas adoptadas seran validas cuando se emita voto favorable por la
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mayoria de las acciones presentes, siempre y cuando hubiere existido quorum de
presencia en los terminos del articulo vigesimo octavo de los estatutos
sociales.
ARTICULO TRIGESIMO PRIMERO. En el caso de Asambleas Extraordinarias, sus
resoluciones seran validas cuando sean adoptadas por el voto favorable de las
acciones que representen, cuando menos, el cincuenta por ciento de las acciones
que integren el capital social.
DISPOSICIONES TRANSISTORIAS. SEGUNDA. Se designan como Administrador Unico
y Administrador Suplente de la Sociedad a los senores Leticia Navarro Ochoa y
Luis Rosas Monroy, respectivamente.
CUARTA. Se designan como Comisario y Comisario Suplente de la sociedad a
los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez Islas,
respectivamente.
QUINTA. Los Administradores. Comisarios designados han aceptado sus cargos
y tienen caucionado su manejo."
II.
NOMBRAMIENTO DEL ADMINISTRADOR UNICO SUPLENTE.
Por escritura numero treinta y cuatro mil cincuenta y cuatro, de fecha
quince de marzo de mil novecientos noventa y tres, otorgada ante el Licenciado
Roberto Nunez y Bandera, titular de la Notaria uno del Distrito Federal,
inscrito su primer testimonio en el Registro Publico de la Propiedad y de
Comercio de esta ciudad, en el filio mercantil
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ciento cuarenta y cinco mil cuatrocientos cincuenta y uno, instrumento por el
que se protocolizo un acta de Asamblea General Ordinaria Anual, celebrada por
los accionistas de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el
veintinueve de septiembre de mil novecientos noventa y dos, por la que se
formalizaron entre otros acuerdos, el de designar como Administrador Unico
Suplente de la expresada Sociedad, al senor LUIS ALFONSO CERVANTES MUNIZ. De la
escritura que se viene relacionando, copio en lo conducente lo siguiente:
"DECLARACIONES. II. . . . acta que a la letra dice: "En el Distrito
Federal, Mexico, a las 13:00 del 29 de septiembre de 1992, se reunieron en el
domicilio social de QUALIFAX, S.A. de C.V. . . . para celebrar la ASAMBLEA
GENERAL ORDINARIA ANUAL DE ACCIONISTAS a la que fueron previa y oportunamente
convocados . . . . La Presidente designo escrutadores a . . . quienes, despues
de aceptar sus cargos, revisaron los instrumentos conteniendo los mandatos de
los representantes de los accionistas y el libro de Registro de Acciones de la
sociedad y certificaron, en union del Comisario, que se encontraba representada
en la Asamblea la totalidad de las acciones de la sociedad actualmente en
circulacion, distribuidas en la siguiente forma: ACCIONISTAS . . . ACCIONES
SERIE "A" . . . ACCIONES SERIE B . . . VOTOS . . . TOTAL. 10,000. En virtud de
encontrarse debidamente representada la totalidad de las acciones emitidas por
la sociedad actualmente en circulacion, la Presidente declaro la Asamblea
legalmente instalada, no obstante no haberse publicada la convocatoria
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respectiva, con fundamento en el articulo 188 de la Ley General de Sociedades
Mercantiles. La Asamblea, por unanimidad de votos, aprobo la declaratoria
anterior y procedio a desahogar los puntos contenidos en el siguiente.
ORDEN DEL DIA. IV. Designacion de las personas que habra de fungir como. .
. . Administrador Unico Suplente de la sociedad.
PUNTO CUATRO. Despues de comentar lo anterior, la Asamblea, por unanimidad
de votos, adopto las siguientes.
RESOLUCIONES. "2. Se designa, con efectos a partir de la fecha de esta
Asamblea al senor Luis Alfonso Cervantes Muniz Administrador Unico Suplente de
QUALIFAX, S.A. DE C.V."
"3. Para el desempeno de sus funciones como Administrador Unico Suplente
de QUALIFAX, S.A. DE C.V., el senor Luis Alfonso Cervantes Muniz tendra la
representacion de la sociedad y las siguientes facultades y obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las
facultades generales y las especiales que requieran clausula especial de
acuerdo con la ley, sin limitacion alguna, de conformidad con lo dispuesto
por el primer parrafo del articulo 2554 del Codigo Civil para el Distrito
Federal y articulos correlativos de los Codigos Civiles de las entidades
federativas de los Estados Unidos Mexicanos, estando por lo tanto
facultado para desistirse de procedimientos, aun del juicio de amparo;
formular querellas y denuncias penales y desistirse de ellas; coadyuvar
con el Ministerio
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Publico y otorgar el perdon, transigir; someterse a arbitraje; formular y
absolver posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la ley, entre los que se incluye
representar a la sociedad ante autoridades y tribunales penales, civiles,
administrativos y del trabajo;
2. Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo 2554 del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades federativas
de los Estados Unidos Mexicanos;
3. Ejecutar actos de dominio de acuerdo con lo previsto en el tercer
parrafo del articulo 2554 del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades federativas
de los Estados Unidos Mexicanos;
4. Suscribir titulos de credito de conformidad con el articulo
noveno de la Ley General de Titulos y Operaciones de Credito;
5. Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad
y designar a las personas que puedan girar contra las mismas;
6. Nombrar y remover al Director General y demas directores,
gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades;
7. Formular reglamentos interiores de trabajo;
8. Convocar a Asambleas de Accionistas y ejecutar sus resoluciones;
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9. Llevar a cabo todos los actos autorizados por los estatutos de la
sociedad o que sean consecuencia de los mismos;
10. Conferir poderes generales y especiales en los terminos de los
parrafos 1., 2., 3., 4. y 5 anteriores, con o sin facultades de
substitucion, asi como revocar los poderes que hubieren sido otorgados por
la sociedad."
Estando presente el senor Luis Alfonso Cervantes Muniz, manifesto a la
Asamblea la aceptacion de su encargo y protesto su fiel y legal desempeno,
exhibiendo y entregando en el acto la cantidad de $100,000.00 M.N. (cien mil
pesos 00/100, moneda nacional) en dinero en efectivo como caucion de su manejo,
dando asi cumplimiento a lo dispuesto en el articulo decimo cuarto de los
estatutos de la sociedad.
No habiendo otro asunto que tratar se suspendio la Asamblea para la
preparacion de la presente acta, la cual fue posteriormente leida, aprobada y
firmada por el Presidente, el Secretario y el Comisario de la Sociedad. Se hace
constar que al momento de adoptarse todas y cada una de las resoluciones
contenidas en esta acta estuvo representada y participo la totalidad del capital
de la sociedad.
Se levanto la Asamblea a las 14:00 del 29 de septiembre de 1992."
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III.
RATIFICACION DE LOS NOMBRAMIENTO DEL
ADMINISTRADOR UNICO, EL ADMINISTRADOR UNICO
SUPLENTE, DEL COMISARIO Y DEL COMISARIO SUPLENTE.
Por escritura numero cincuenta y tres mil ciento setenta y cinco, de fecha
veintitres de junio de mil novecientos noventa y cuatro, otorgada ante el
Licenciado Moises Farca Charabati, titular de la Notaria noventa y uno del
Distrito Federal, inscrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta ciudad, el siete de septiembre de mil
novecientos noventa y cuatro, en el folio mercantil numero ciento cuarenta y
cinco mil cuatrocientos cincuenta y uno, instrumento en el que se hizo constar
la protocolizacion parcial de un acta de Asamblea General Ordinaria Anual,
celebrada por los accionistas de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, el veinticuatro de agosto de mil novecientos noventa y tres, por la
que se formalizaron entre otros acuerdos, el de ratificar en los cargos que a
continuacion se indican, a las siguientes personas:
ADMINISTRADOR UNICO: A la senora LETICIA NAVARRO OCHOA.
ADMINISTRADOR UNICO SUPLENTE: Al senor LUIS ALFONSO CERVANTES MUNIZ.
COMISARIO PROPIETARIO: Al senor FERNANDO HOLGUIN MAILLARD.
COMISARIO SUPLENTE: Al senor EDUARDO RODRIGUEZ ISLAS.
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IV.
ACTA DE ASAMBLEA QUE SE PROTOCOLIZA.
Los comparecientes me exhiben el libro de actas de Asambleas de
Accionistas libro en el que fojas cincuenta a sesenta y nueve, inclusive, consta
el Acta de Asamblea General Ordinaria Anual y Extraordinaria de la expresada
Sociedad, celebrada con fecha primero de agosto de mil novecientos noventa y
cuatro, de la cual en lo conducente copio lo siguiente:
"En el Distrito Federal, Mexico, a las 15:00 del 1 de agosto de
1994, se reunieron en el domicilio social de QUALIFAX, S.A. DE C.V. los
senores Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de
C.V., y de Plumibol, S.A. de C.V., Alejandro Nila Rosales, en
representacion de Calzada Mariano Escobedo 151-155, S.A. de C.V., de Braun
de Mexico y Compania, de C.V. y de Oral-B Laboratorios, S.A. de C.V., para
celebrar ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA DE ACCIONISTAS
de QUALIFAX, S.A. DE C.V., a la que fueron previa y oportunamente
convocados. Estuvieron tambien presentes los senores Fernando Holguin
Maillard, Comisario de la sociedad, Luis Alfonso Cervantes Muniz, Julo
Pedro Cepeda Rebollo y Sergio Rene Aparicio Gonzalez, quienes fueron
invitados al evento. Por designacion unanime de los presentes fungio como
Presidente de la Asamblea el senor Alejandro Sainz Orantes. Asimismo se
designo como Secretario al senor Luis Alfonso
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Cervantes Muniz. El Presidente designo escrutador al senor Alejandro Nila
Rosales quien, despues de aceptar su cargo, reviso los instrumentos
conteniendo los mandatos de los representantes de los accionistas y el
Libro de Registro de Acciones de la sociedad y certifico, un union del
Comisario, que se encontraba representada en la Asamblea la totalidad de
las acciones de la sociedad actualmente en circulacion, distribuidas en la
siguiente forma:
<TABLE>
<CAPTION>
Acciones Serie
--------------------
Accionista "A" "B" Votos
- ----------------------------------------------- ------- ------- -----
<S> <C> <C> <C>
Grupo Jafra, S.A. de C.V., representada
por el senor Alejandro Sainz Orantes 9,996 9,996
Plumibol, S.A. de C.V., representada por
el senor Alejandro Sainz Orantes 1 1
Calzada Mariano Escobedo 151-155, S.A
de C.V., representada por el senor
Alejandro Nila Rosales 1 1
Braun de Mexico y Compania, S.A. de
C.V., representada por el senor Alejandro
Nila Rosales 1 1
Oral-B Laboratorios, S.A. de C.V.,
representada por el senor Alejandro Nila
Rosales 1 1
TOTAL 9,997 3 10,000
</TABLE>
En virtud de encontrarse debidamente representada en la Asamblea la
totalidad de las acciones emitidas por la sociedad actualmente en circulacion,
el Presidente declaro la misma legalmente instalada, no obstante no haberse
publicado la convocatoria
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respectiva, con fundamento en el articulo 188 de la Ley General de Sociedades
Mercantiles. La Asamblea, por unanimidad de votos, aprobo la declaratoria
anterior y procedio a desahogar los asuntos contenidos en el siguiente.
ORDEN DEL DIA. V. Designacion de las personas que habran de fungir como
Administrador Unico y Administrador Unico Suplente y como Comisario y Comisario
Suplente de la sociedad, respectivamente.
VII. Designacion del senor Julio Pedro Cepeda Rebollo como Director
General de la sociedad y otorgamiento de poderes en su favor.
VIII. Designacion del senor Sergio Rene Aparicio Gonzalez como Director de
Relaciones Industriales de la sociedad y otorgamiento de poderes en su favor.
IX. Modificacion total a los estatutos que rigen a la sociedad para
adecuarlos a las reformas a la Ley General de Sociedades Mercantiles en vigor a
partir del 11 de junio de 1992.
X. Designacion de delegados para formalizar las resoluciones adoptadas por
la Asamblea.
PUNTO CINCO. En relacion con este quinto punto del Orden del Dia el
Presidente de la Asamblea informo a los presentes sobre la renuncia, con efectos
a partir del 4 de julio de 1994, de la senora Leticia Navarro Ochoa a su cargo
de Administradora Unica de la sociedad. Preciso el senor Alejandro Sainz Orantes
que la renuncia arriba mencionada surte sus efectos a partir del 4 de julio de
1994. Por su parte, el senor
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Alejandro Nila Rosales, representante en la Asamblea de los accionistas Calzada
Mariano Escobedo 151-155, S.A. de C.V. y de Braun de Mexico y Compania, S.A. de
C.V. propuso que en el evento que fueran aceptada la renuncia sometida a
consideracion de la Asamblea i) se designase al senor Julio Pedro Cepeda Rebollo
Administrador Unico de la sociedad, y ii) se ratificase la designacion del senor
Luis Alfonso Cervantes Muniz para continuar desempanandose como Administrador
Unico Suplente. Incluyo tambien en su propuesta el senor Nila Rosales la
ratificacion de la designacion de los senores Fernando Holguin Maillard y
Eduardo Rodriguez Islas como Comisario Propietario y Suplente, respectivamente,
de la sociedad. Entonces el Secretario de la Asamblea, senor Luis Alfonso
Cervantes Muniz, informo a los presentes que la designacion del senor Julio
Pedro Cepeda Rebollo como Administrador Unico de la sociedad fue debidamente
autorizada por el Instituto Nacional de Migracion, como consta en el oficio
12207 dictado por dicha autoridad en el expediente 5/214490 de 1 de junio de
1994, con fundamento en las disposiciones aplicables de la Ley General de
Poblacion. Aclaro el propio senor Cervantes Muniz que por lo que respecta a la
ratificacion de su designacion no se requiere autorizacion alguna por parte de
las autoridades migratorias, dada su nacionalidad mexicana. Despues de
intercambiar impresiones sobre lo vertido respecto de este quinto punto del
Orden del Dia, los presentes, por unanimidad de votos, adoptaron las siguientes.
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RESOLUCIONES. "1. Se acepta, con efectos al 4 de julio de 1994, la
renuncia sometida por la senora Leticia Navarro Ochoa a su cargo de
Administradora Unica de la sociedad, cargo para el que fue designada por
escritura publica 29,608 de 2 de enero de 1991, otorgada por el Licenciado
Roberto Nunez y Bandera, Notario Publico 1 del Distrito Federal, el primer
testimonio de la cual quedo debidamente inscrito en el Registro Publico de
Comercio de esta capital en el folio mercantil 145451."
"2. Se agradecen a la senora Leticia Navarro Ochoa los relevantes
servicios que presto a la sociedad en su desempeno como Administradora Unica de
la misma, y todos los accionistas y representantes de accionistas hacen votos
para que tenga el mayor de los exitos en sus nuevas e importantes
responsibilidades en Jafra Cosmetics International, Inc."
"3. Con efectos a partir del 4 de julio de 1994 se designa al senor Julio
Pedro Cepeda Rebollo como Administrador Unico de QUALIFAX, S.A. DE C.V.,
haciendose constar que la Designacion que en este acto se resuelve fue
debidamente autorizada por el Instituto Nacional de Migracion, como consta en el
oficio 12207 dictado por dicha autoridad en el expediente 5/214490 de 1 de
junio de 1994, con fundamento en las disposiciones aplicables de la Ley General
de Poblacion."
"4. Se ratifica la designacion del senor Luis Alfonso Cervantes Muniz como
Administrador Unico Suplente de la sociedad."
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"5. Se ratifica la designacion de los senores Fernando Holguin Maillard y
Eduardo Rodriguez Islas como Comisarios Propietario y Suplente, respectivamente,
de QUALIFAX, S.A. DE C.V." Estando presente en la Asamblea el senor Julio Pedro
Cepeda Rebollo procedio a agradecer a la misma su designacion como Administrador
Unico de QUALIFAX, S.A. DE C.V., manifestando que realizara su mejor esfuerzo
para cumplir cabalmente con sus obligaciones en tal caracter, y acto seguido
exhibio en dinero efectivo cien nuevos pesos, moneda nacional, como garantia de
su gestion, dando asi cumplimiento a lo dispuesto en el articulo XIV de los
actuales estatutos sociales de QUALIFAX, S.A. DE C.V.
PUNTO SIETE. En relacion con este septimo punto del Orden del Dia, el
Presidente de la Asamblea comento a los presentes la conveniencia de designar al
senor Julio Pedro Cepeda Rebollo como Director General de la sociedad, quien
para el desempeno de sus funciones habra de ser investido de poderes idoneos.
Despues de comentar sobre propuesta del Presidente, la Asamblea, por unanimidad
de votos, adopto las siguientes.
RESOLUCIONES. "1. Con efectos a partir del 4 de julio de 1994 se designa
al senor Julio Pedro Cepeda Rebollo Director General de QUALIFAX, S.A. DE C.V.,
quien como garantia de su gestion deposito en la caja de la sociedad, la
cantidad de cien nuevos pesos, moneda nacional, y para el desempeno de sus
funciones gozara del poder general de la sociedad para: a) Pleitos y cobranzas,
con todas las facultades generales y
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<PAGE>
las especiales que requieren clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo;
formular querellas y denuncias y otorgar perdon, cuando este proceda; transigir;
comprometer en arbitros; absolver y articular posiciones; recusar jueces;
recibir pagos y ejecutar todos los demas actos expresamente autorizados por la
ley, entre los que se incluye representar a la sociedad ante toda clase de
autoridades y tribunales, sean penales, civiles, administrativos o del trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades federativas que
integran la Federacion; c) La realizacion de actos que involucren las mas
amplias facultades de administracion y direccion por lo que respecta a la
planeacion, organizacion, mando y control del personal de QUALIFAX, S.A. DE C.V.
y, en consecuencia, por ministerio del articulo once de la Ley Federal del
Trabajo, habra de tener el caracter de representante legal de QUALIFAX, S.A. DE
C.V. en sus relaciones con los trabajadores; asimismo se le otorga, sin
limitacion alguna, en su caracter de representante legal, el poder general de la
sociedad para pleitos y cobranzas, con todas las facultades generales y aun las
especiales que de acuerdo con la ley requieran poder o clausula especial, en los
terminos del parrafo primero del articulo dos
23
<PAGE>
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion. De manera enunciativa y no limitativa, se mencionan, entre otras,
facultades para representar a QUALIFAX, S.A. DE C.V.: i) ante toda clase de
autoridades administrativas y judiciales, tanto de caracter municipal como
estatal y federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales como
federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis, setecientos
ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en la etapa
conciliatoria, en la articulacion y absolucion de posiciones y en toda la
secuela de los juicios laborales en que QUALIFAX, S.A. DE C.V. sea parte o
tercera interesada; d) Suscribir y endosar titulos de credito en nombre y
representacion de la sociedad, en terminos del articulo novena de la Ley General
de Titulos y Operaciones de Credito, asi como abrir, operar y cerrar cuentas de
la sociedad con instituciones bancarias e instituciones bursatiles, tanto del
pais como del extranjero, en moneda nacional y en moneda extranjera, designando
a personas autorizadas para
24
<PAGE>
operar dichas cuentas y girar contra las mismas; y e) Otorgar y revocar poderes
en terminos de los parrafos a), b) y c) que anteceden, con o sin facultades de
substitucion, y revocar poderes otorgados por la sociedad."
"2. La designacion contenida en el parrafo resolutivo 1. anterior queda
sujeta a la condicion suspensiva de que el Instituto Nacional de Migracion
otorgue la autorizacion que procede conforme a la legislacion aplicable."
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo procedio a
agradecer a la Asamblea su designacion como Director General de QUALIFAX, S.A.
DE C.V., manifestando que realizara su mejor esfuerzo para cumplir cabalmente
con sus obligaciones en tal caracter.
PUNTO OCHO. En relacion con este octavo punto del Orden del Dia, el
Presidente de la Asamblea comento a los presentes la conveniencia de designar al
senor Sergio Rene Aparicio Gonzalez como Director de Relaciones Industriales de
la sociedad, quien para el desempeno de sus funciones habra de ser investido de
poderes idoneos. Despues de comentar sobre la propuesta del Presidente, la
Asamblea, por unanimidad de votos, adopto la siguiente.
RESOLUCION. "Con efectos a partir del 1 de septiembre de 1994 se designa
al senor Sergio Rene Aparicio Gonzalez Director de Relaciones Industriales de
QUALIFAX, S.A. DE C.V., quien para el desempeno de sus funciones gozara del
poder general de la sociedad para: a) Pleitos y cobranzas, con todas las
facultades generales y las especiales que requieren clausula especial conforme a
la ley, sin limitacion alguna, en
25
<PAGE>
los terminos del primer parrafo del articulo dos mil quinientos cincuenta y
cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de los
Codigos Civiles de las entidades que integran la Federacion, estando por lo
tanto facultado para desistirse aun del juicio de amparo; formular querellas y
denuncias penales y otorgar perdon, cuando este proceda; transigir; comprometer
en arbitros; absolver y articular posiciones; recusar jueces; recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante toda clase de autoridades y
tribunales, sean penales, civiles, administrativos o del trabajo; b) Administrar
bienes, en los terminos del parrafo segundo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion;
c) La realizacion de actos que involucren las mas amplias facultades de
administracion y direccion por lo que respecta a la planeacion, organizacion,
mando y control del personal de QUALIFAX, S.A. DE C.V. y, en consecuencia, por
ministerio del articulo 11 de la Ley Federal del Trabajo, habra de tener el
caracter de representante legal de QUALIFAX, S.A. DE C.V. en sus relaciones con
los trabajadores; asimismo se le otorga, sin limitacion alguna, en su caracter
de representante legal, el poder general para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la ley requieran
poder o clausula especial, en los terminos del parrafo primero del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos
26
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correlativos en los Codigos Civiles de las entidades que integran la Federacion.
De manera enunciativa y no limitativa, se mencionan, entre otras, facultades
para representar a QUALIFAX, S.A. DE C.V.: i) ante toda clase de autoridades
administrativas y judiciales, tanto de caracter municipal como estatal y
federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales como
federales, y ante las autoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo, y iv) compareciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion II, ochocientos setenta y seis, setecientos ochenta y seis, setecientos
ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en la etapa
conciliatoria, en la articulacion y absolucion de posiciones y en toda la
secuela de los juicios laborales en que QUALIFAX, S.A. DE C.V. sea parte o
tercera interesada." Estando presente en la Asamblea el senor Sergio Rene
Aparicio Gonzalez procedio a agradecer a la Asamblea su designacion como
Director de Relaciones Industriales de QUALIFAX, S.A. DE C.V., manifestando que
realizara su mejor esfuerzo para cumplir cabalmente con sus obligaciones en tal
caracter.
PUNTO NUEVE. Respecto de este punto noveno del Orden del Dia el Presidente
de la Asamblea expuso a los presentes que se considera conveniente modificar
27
<PAGE>
integramente los actuales estatutos sociales de QUALIFAX, S.A. DE C.V., a fin de
que en ellos se incorporen las modificaciones que sufrio nuestra Ley General de
Sociedades Mercantiles, mismas que entraron en vigor el 11 de junio de 1992, las
que permiten mayor flexibilidad en la realizacion de actos corporativos de la
empresa y se adecuan a la actual estructura de su capital social. Indico el
Presidente que el proyecto de nuevos estatutos sociales de QUALIFAX, S.A. DE
C.V. se hizo llegar oportunamente a los accionistas de la sociedad para su
analisis. Los presentes coincidieron en la conveniencia de modificar
integramente los estatutos de la sociedad en los terminos del proyecto que
recibieron con oportuna anticipacion los accionistas que representan, por lo que
la Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. Con efectos a partir del 1 de noviembre de 1994 se
modifican integramente los estatutos sociales de QUALIFAX, S.A. DE C.V. en los
terminos del proyecto que oportunamente y con anticipacion a la fecha de esta
Asamblea fue entregado a los accionistas de la sociedad."
"2. Al expediente de esta acta se agrega bajo la LETRA "D", un ejemplar de
los nuevos estatutos de QUALIFAX, S.A. DE C.V. en vigor a partir del 1 de
noviembre de 1994, ejemplar que ha sido debidamente inicialado con fines de
identificacion por el Presidente y el Secretario de esta Asambla."
PUNTO DIEZ. En relacion con este punto decimo del Orden del Dia, el
Presidente manifesto la necesidad de designar a la persona o personas que, en
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representacion de la sociedad, habran de comparecer ante Notario Publico para i)
otorgar los poderes a que se contraen las resoluciones adoptadas respecto de los
puntos VII y VIII del Orden del Dia de esta Asamblea, ii) protocolizar el acta
que de esta Asamblea se levante, iii) inscribir el o los testimonios que
contengan tal protocolizacion en el Registro Publico de Comercio del Distrito
Federal, y, iv) adoptar cuanta medida o accion se requiera a efecto de que las
resoluciones adoptadas por esta Asamblea cobren pleno vigor y surtan todos sus
efectos, proponiendo se designe para tal fin a la senorita Elisa Iglesias
Alvarez y a los senores Luis Alfonso Cervantes Muniz, Alejandro Sainz Orantes y
Alejandro Nila Rosales, quienes podran actuar conjunta o separadamente,
indistintamente. La Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. En los terminos de lo dispuesto por el articulo 10 de la
Ley General de Sociedades Mercantiles se designan Delegados Especiales de
QUALIFAX, S.A. DE C.V. a quienes fungieron como Presidente y Secretario del la
Asamblea, esto es, a los senores Alejandro Sainz Orantes y Luis Alfonso
Cervantes Muniz, a efecto de que conjuntamente comparezcan ante el Notario
Publico de su eleccion a otorgar, en representacion de QUALIFAX, S.A. DE C.V.,
los poderes a que se contraen las resoluciones adoptadas respecto de los puntos
VII y VIII del Orden del Dia de esta Asamblea General Ordinaria Anual y
Extraordinaria de Accionistas, teniendose el texto de tales por aqui
reproducidos como si se insertase a la letra."
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"2. Se designan Delegados Especiales de QUALIFAX, S.A. DE C.V. a la
senorita Elisa Iglesias Alvarez y a los senores Luis Alfonso Cervantes Muniz,
Alejandro Sainz Orantes y Alejandro Nila Rosales, quienes podran acutar conjunta
o separadamente, indistintamente, a efecto de que comparezcan ante el Notario
Publico de su eleccion a protocolizar el acta que de esta Asamblea se levante y
a efecto de que inscriban el o los primeros testimonios correspondientes en el
Registro Publico de Comercio de esta capital en el folio mercantil 145451."
No habiendo otro asunto que tratar se suspendio la Asamblea por el tiempo
necesario para la redaccion de la presente acta, la cual fue posteriormente
leida, aprobada y firmada por todos los que en ella intervinieron. Se hace
constar que al momento de adoptarse todas y cada una de las resoluciones
contenidas en esta acta estuvo representada y participo la totalidad del capital
de la sociedad. Se agregan al expediente de esta acta: d) Bajo la LETRA "D", el
texto de los estatutos sociales de QUALIFAX, S.A. DE C.V. en vigor a partir del
1 de noviembre de 1994.
Se levanto la Asamblea a las 16:00 horas del 1 de agosto de 1994.
Una firma.
Alejandro Sainz Orantes, en representacion
de Grupo Jafra, S.A. de C.V. y de
Plumibol, S.A. de C.V.
Presidente.
Una firma.
Luis Alfonso Cervantes Muniz
Secretario
30
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Una firma.
Alejandro Nila Rosales, en representacion
de Calzada Mariano Escobedo 151-155,
S.A. de C.V., de Braun de Mexico y
Compania, de C.V. y de Oral-B
Laboratorios, S.A. de C.V.
Una firma.
Julio Pedro Cepeda Rebollo
Una firma.
Sergio Rene Aparicio Gonzalez
Una firma.
Fernando Holguin Maillard
Comisario"
V.
AUTORIZACION DEL INSTITUTO NACIONAL DE MIGRACION.
Los comparecientes me exhiben el oficio numero doce mil doscientos siete,
del expediente numero cinco diagonal doscientos catorce mil cuatrocientos
noventa, de fecha primero de junio de mil novecientos noventa y cuatro, mismo
que contiene la autorizacion del Instituto Nacional de Migracion de la
Secretaria de Gobernacion, para que el senor JULIO PEDRO CEPEDA REBOLLO, ocupe
el cargo de Administrador Unico de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE. Fotocopia de dicho oficio, la agrego al apendice de esta escritura, en
una foja util y con la letra "A".
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EXPUESTO LO ANTERIOR, LOS COMPARECIENTES FORMALIZAN LO QUE SE CONTIENE EN
LAS SIGUIENTES:
CLAUSULAS
PROTOCOLIZACION PARCIAL
PRIMERA. A solicitud de los senores Licenciados LUIS ALFONSO CERVANTES
MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados Especiales de
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en cumplimiento del acuerdo
respectivo, queda PROTOCOLIZADA en la presente en su parte transcrita el ACTA DE
ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de la expresada
Sociedad, celebrada el primero de agosto de mil novecientos noventa y cuatro,
misma que he copiado en lo conducente en el antecedente cuarto de este
instrumento.
SEGUNDA. En consecuencia, se tienen por formalizados los siguientes
acuerdos:
A). Con efectos al cuatro de julio de mil novecientos noventa y
cuatro, por aceptada la renuncia de la senora LETICIA NAVARRO OCHOA, al
cargo de Administradora Unica de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE.
B). Con efectos a partir del cuatro de julio de mil novecientos
noventa y cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como
Administrador
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Unico de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quien en el
desempeno de su cargo gozara de todas las facultades que la Ley concede a
los de su clase y muy especialmente de las senaladas en los Estatutos
Sociales.
C). Por ratificada la designacion del senor LUIS ALFONSO CERVANTES
MUNIZ, al cargo de Administrador Unico Suplente de la expresada Sociedad,
quien para el desempeno de su cargo gozara de las facultades senaladas en
la escritura relacionada en el antecedente segundo de la presente.
D). Por ratificada la designacion de los senores FERNANDO HOLGUIN
MAILLARD y EDUARDO RODRIGUEZ ISLAS, a los cargos de Comisarios Propietario
y Suplente, respectivamente, de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE.
E). Con efectos a partir del cuatro de julio de mil novecientos
noventa y cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como
Director General de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
Dicha designacion, QUEDA SUJETA A LA CONDICION SUSPENSIVA de que el
Instituto Nacional de Migracion otorgue la autorizacion respectiva.
F). Con efectos a partir del primero de septiembre de mil
novecientos noventa y cuatro, por designado al senor SERGIO RENE APARICIO
GONZALEZ, como Director de Relaciones Industriales de "QUALIFAX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE.
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G). Con efectos a partir del primero de noviembre de mil novecientos
noventa y cuatro, por modificados integramente los estatutos sociales de
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
H). Por designados como Delegados Especiales de "QUALIFAX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, a los senores ALEJANDRO SAINZ ORANTES, LUIS
ALFONSO CERVANTES MUNIZ, ALEJANDRO NILA ROSALES, y a la senorita ELISA
IGLESIAS ALVAREZ, quienes tendran las facultades contenidas en el acta que
ha quedado protocolizada parcialmente, mismas que se tienen aqui por
reproducidas como si se insertasen a la letra.
PROTOCOLIZACION
TERCERA. A solicitud de los senores Licenciados LUIS ALFONSO CERVANTES
MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados Especiales de
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quedan PROTOCOLIZADOS en la
presente, los nuevos Estatutos Sociales de la expresada Sociedad, mismos que
agrego al apendice de esta escritura, en doce fojas utilizadas unicamente por el
anverso y con la letra "B".
OTORGAMIENTO DE PODERES GENERALES
CUARTA. "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
como se ha dicho por sus Delegados Especiales, en
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cumplimento del acuerdo contenido en el acta que ha quedado protocolizada
parcialmente por esta escritura, OTORGA al senor JULIO PEDRO CEPEDA REBOLLO,
para el desempeno de su cargo de Director General de la expresada Sociedad,
PODER GENERAL para:
A). PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin
limitacion alguna, en los terminos del primer parrafo del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las Entidades que
integran la Federacion, estando por lo tanto facultado para desistirse aun
del juicio de amparo; formular querellas y denuncias penales y otorgar
perdon, cuando este proceda; transigir; comprometer en arbitros; absolver
y articular posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la Ley, entre los que se incluye
representar a la Sociedad ante toda clase de Autoridades y Tribunales,
sean Penales, Civiles, Administrativos o del Trabajo;
B). ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
Entidades que integran la Federacion;
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C). LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS
FACULTADES DE ADMINISTRACIO Y DIRECCION por lo que respecta a la
planeacion, organizacion, mando y control del personal de "QUALIFAX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE y, en consecuencia, por ministerio
del articulo once de la Ley Federal del Trabajo, habra de tener el
caracter de representante legal de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, en sus relaciones con los trabajadores; asimismo se le otorga,
sin limitacion alguna, en su caracter de representante legal, el poder
general de la Sociedad para pleitos y cobranzas, con todas las facultades
generales y aun las especiales que de acuerdo con la Ley requieran poder o
clausula especial, en los terminos del parrafo primero del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las Entidades
que integran la Federacion. De manera enunciativa y no limitativa se
mencionan entre otras, facultades para representar a "QUALIFAX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de Autoridades
Administrativas y Judiciales, tanto de caracter Municipal como Estatal y
Federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional
para el Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro,
ii) ante las Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto
Locales como Federales,
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y ante las Autoridades Laborales a que se refiere el articulo quinientos
veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo, y iv) compareciendo y actuando,
de acuerdo con lo dispuesto en los articulos once, seiscientos noventa y
dos, fraccion dos (romano), ochocientos setenta y seis, setecientos
ochenta y seis, setecientos ochenta y siete y demas aplicables de la Ley
Federal del Trabajo, en la etapa conciliatoria, en la articulacion y
absolucion de posiciones y en toda la secuela de los juicios laborales en
que "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, sea parte o tercera
interesada;
D). SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y
representacion de la Sociedad, en terminos del articulo noveno de la Ley
General de Titulos y Operaciones de Credito, asi como abrir, operar y
cerrar cuentas de la Sociedad con Instituciones Bancarias e Instituciones
Bursatiles, tanto del pais como del extranjero, en moneda nacional y en
moneda extranjera, designando a personas autorizadas para operar dichas
cuentas y girar contra las mismas;
E). OTORGAR Y REVOCAR PODERES en terminos de los parrafos A), B), y
C) que anteceden, con o sin facultades de substitucion, y revocar poderes
otorgados por la Sociedad.
QUINTA. "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
come se ha dicho por sus Delegados Especiales, en cumplimiento del acuerdo
contenida en el acta que ha quedado protocolizada
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parcialmente en esta escritura, OTORGA al senor SERGIO RENE APARICIO GONZALEZ,
para el desempeno de su cargo de Director de Relaciones Industriales de la
expresada Sociedad, PODER GENERAL para:
A). PLEITOS Y CORANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin
limitacion alguna, en los terminos del primer parrafo del ARTICULO dos mil
quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las Entidades que
integran la Federacion, estando por lo tanto facultado para desistirse aun
del juicio de amparo; formular querellas y denuncias penales y otorgar
perdon, cuando este proceda; transigir; comprometer en arbitros; absolver
y articular posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la Ley, entre los que se incluye
representar a la Sociedad ante toda clase de Autoridades y Tribunales,
sean Penales, Civiles, Administrativos o del Trabajo;
B). ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
Entidades que integran la Federacion;
C). LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS
FACULTADES DE ADMINISTRACION Y DIRECCION por lo que
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respecta a la planeacion, organizacion, mando y control del personal de
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE y, en consecuencia, por
ministerio del articulo once de la Ley Federal del Trabajo, habra de tener
el caracter de representante legal de "QUALIFAX", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, en sus relaciones con los trabajadores; asimismo se le
otorga, sin limitacion alguna, en su caracter de representante legal, el
poder general de la Sociedad para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la Ley
requieran poder o clausula especial, en los terminos del parrafo primero
del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles de las
Entidades que integran la Federacion. De manera enunciativa y no
limitativa se mencionan entre otras, facultades para representar a
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE: i) ante toda clase de
Autoridades Administrativas y Judiciales, tanto de caracter Municipal como
Estatal y Federal, ante el Instituto del Fondo Nacional para la Vivienda
de los Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo
Nacional para el Consumo de los Trabajadores y el Sistema de Ahorro para
el Retiro, ii) ante las Juntas de Conciliacion y de Conciliacion y
Arbitraje, tanto Locales como Federales, y ante las Autoridades Laborales
a que se refiere el articulo quinientos veintitres de la Ley Federal del
Trabajo, iii) en toda clase de procedimientos, incluyendo el del
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amparo, y iv) compareciendo y actuando, de acuerdo con lo dispuesto en los
articulos once, seiscientos noventa y dos, fraccion dos (romano),
ochocientos setenta y seis, setecientos ochenta y seis, setecientos
ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en la
etapa conciliatoria, en la articulacion y absolucion de posiciones y en
toda la secuela de los juicios laborales en que "QUALIFAX", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, sea parte o tercera interesada.
CLAUSULAS COMUNES
SEXTA. Los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO
SAINZ ORANTES, en su citado caracter de Delegados Especiales de "QUALIFAX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, liberan al suscrito Notario de la
obligacion de inscribir el primer testimonio de esta escritura, en el Registro
Publico de la Propiedad y de Comercio del Distrito Federal, siendo por cuenta de
"QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, todos los gastos, derechos y
honorarios que dicho tramite origine.
SEPTIMA. Los gastos y honorarios que esta escritura origine, seran por
cuenta de "QUALIFAX", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifiestan los senores Licensiados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, bajo protesta de decir verdad y advertidos
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previamente de las penas en que incurren quienes declaran con falsedad ante
Notario, que:
A). Los funcionarios designados de la referida Sociedad, han
aceptado sus respectivos cargos y caucionado debidamente el manejo de los
mismos.
B). Las firmas que aparecen al final del acta protocolizada
parcialmente, corresponden a las personas que se les atribuyen.
C). LA PERSONALIDAD que ostentan no les ha sido revocada ni en forma
alguna limitada, y acreditan la misma asi como la legal constitucion de su
representada, con los documentos relacionados en los antecedentes de la
presente.
POR SUS GENERALES, los comparecientes declaran ser mexicanos por
nacimiento; el senor LUIS ALFONSO CERVANTES MUNIZ, originario del Distrito
Federal, nacio el dieciseis de noviembre de mil novecientos cincuenta y cinco,
casado, Licenciado en Derecho, con domicilio en Campos Eliseos numero
trescientos cuarenta y cinco, tercer piso, colonia Chapultepec Polanco,
Delegacion Miguel Hidalgo, quien es de mi personal conocimiento; y el senor
ALEJANDRO SAINZ ORANTES, originario del Distrito Federal, nacio el doce de abril
de mil novecientos setenta, soltero, Licenciado en Derecho, con el mismo
domicilio que el anterior, se identifica con su licencia para conducir tipo "A"
marcada con el numero "NVA" un millon ciento setenta y tres mil trescientos
setenta y seis, expedida el veinticuatro de febrero de mil novecientos noventa
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y tres, por el modulo quince de la entonces Secretaria General de Proteccion y
Vialidad del Departmento del Distrito Federal.
FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el Notario;
lo relacionado e inserto concuerda con sus originales a que me remito; los
comparecientes a quienes explique ampliamente el valor y las consecuencias
legales de esta escritura, me son conocidos y tienen capacidad legal; la misma
les fue leida y conformes con ella la firman el dia de su fecha en que desde
luego AUTORIZO.
DOY FE.
LUIS ALFONSO CERVANTES MUNIZ
Firma.
ALEJANDRO SAINZ ORANTES
Firma.
CARLOS ANTONIO REA FIELD
Firma.
El sello de autorizar
NOTAS COMPLEMENTARIAS
NOTA PRIMERA. Mexico, Distrito Federal a veintiocho de abril de mil
novecientos noventa y cinco. Con esta fecha agrego al apendice en dos fojas
utiles y con
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la letra "C", el aviso que di al Registro Nacional de Inversiones Extranjeras,
conforme al articulo treinta y cuatro de la Ley de Inversion Extranjera.
DOY FE.
CARLOS ANTONIO REA FIELD
Rubrica.
INSERCION DEL ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO
CIVIL PARA EL DISTRITO FEDERAL.
"ART. 2554. En todos los poderes generales para pleitos y cobranzas
bastara que se diga que se otorga con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, para que se
entiendan conferidos sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar que se
dan con ese caracter para que el apoderado tengo toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que se
den con ese caracter para que el apoderado tenga todas las facultades de dueno,
tanto en lo relativo a los bienes, como para hacer toda clase de gestiones, a
fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mencionados, las
facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
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Los notarios insertaran este articulo en los testimonios de los poderes
que otorguen."
ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA "QUALIFAX",
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A SU SOLICITUD. VA EN DIECISIETE FOJAS
UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS.
DOY FE.
MEXICO, DISTRITO FEDERAL A
VEINTIOCHO DE ABRIL DE MIL
NOVECIENTOS NOVENTA Y
CINCO.
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EXHIBIT 3.10(B)
INSTITUTO NACIONAL DE MIGRACION,
DIRECCION DE INMIGRANTES E INMIGRADOS
DIRECCION DE INMIGRANTES "B" EXP. 6/214490
ASUNTO: Se autoriza la Internacion al pais, a persona citan de
nacionalidad ARGENTINA, BRASILENA Y NORTEAMERICANA
Mexico, D.F., a 1 de junio de 1994.
LIC. EDUARDO IBARRELA NICOLIN
DIRECTOR GENERAL DE ASUNTOS CONSULARES
SECRETARIA DE RELACIONES EXTERIORES
RICARDO FLORES MAGON No. 1
ANEXO PLANTA BAJA
CIUDAD.
Agradecere a usted se sirva girar sus apreciables instituciones a nuestra
Representacion Consular en Los Angeles, California, E.U.A., a fin de que se
documente en Calidad de INMIGRANTE por UN ANO, en los terminos del Articulo 48
Fraccion IV (CUARTA) de la Ley General de Poblacion, al senor JULIO PEDRO CEPEDA
REBOLLO, de nacionalidad ARGENTINA, para el exclusivo objeto de que preste sus
servicios como ADMINISTRADOR UNICO en las empresas DIRSAMEX, S.A. DE C.V.,
QUALIFAX, S.A. DE C.V., REDAY, S.A. DE C.V., DISTRIBUIDORA VENUS, S.A. DE C.V.,
Y JAFRA COSMETICS, S.A. DE C.V., asi como PRESIDENTE DE CONSEJO DE
ADMINISTRACION EN PLUMISOL, S.A. DE C.V., Y GRUPO JAFRA, S.A. DE C.V., todas
unos cados en esta Ciudad; con prohibicion para realizar otra actividad distinta
a las autoridades.
Asimismo se documentaran como INMIGRANTES por UN ANO, a los terminos del
Articulo 48 Fraccion VII (SEPTIMA) de la Ley General de Poblacion, a la senora
ANA ELENA CASTRO LEDESMA DE CEPEDA de nacionalidad ARGENTINA, e hijos LUCAS,
MAXI [?] PIA de nacionalidad BRASILENA Y THOMAS CEPEDA CASTRO de nacionalidad
NORTEAMERICANA, para el exclusivo objeto de que vivan al lado y bajo la
dependencia economica del senor JULIO PEDRO CEPEDA REBOLLO, esposo y padre de
las citadas personas, en virtud de haberse comprobado el nexo familiar que los
une entre si; con prohibicion para desempenar cualquier actividad, excepto la de
realizar estudios.
Cada uno de los citados extranjeros pagaran la suma de M$540.00
(QUINIENTOS CUARENTA NUEVOS PESOS 00/100 M.N.) por concepto de derechos
establecidos en el Articulo 9 Fraccion I (PRIMERA) de la Ley Federal de
Derechos en vigor.
<PAGE>
Se hara del conocimiento de los extranjeros arriba citados el contenido de
los Articulos 43, 45, 46, 47, y 63 de la Ley General de Poblacion y de que
cuentan con un plazo de TRES MESES, a partir de la fecha de despacho del
presente oficio para documentarse e internarse en el pais, asi como que en un
plazo de 45 dias naturales contados a partir de la fecha de la internacion el
senor JULIO PEDRO CEPEDA REBOLLO, debera acreditar encontrarse en el desempeno
de las actividades para las que fue autorizado.
ATENTAMENTE
SUFRAGIO EFECTIVO, NO REFLECCION
LA COMMISIONADA
LIC. BLANCA RUTH ESPONDA ESPINOZA
c.c.p.-Direccion de Inspeccion.-Edif.
c.c.p.-Deleg. del Instituto Nacional de Migracion.-Puerto Central Aero.
c.c.p.-Ares de Inf. de la Direc. de Inmigrantes e Inmig.-Edif.
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EXHIBIT 3.10(C)
LIC. CARLOS ANTONIO REA FIELD
Notaria Numero 187
Mexico, D.F.
DEL APENDICE
LETRA "B"
QUALIFAX, S.A. DE C.V.
ESTATUTOS
NOBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO I. La denominacion de la sociedad es "QUALIFAX" y debera ir
siempre seguida de las palabras "sociedad anonima de capital variable", o de su
abreviatura "S.A. de C.V.".
ARTICULO II. El domicilio de la sociedad es el Distrito Federal, Mexico;
sin embargo, podra establecer agencias o sucursales en cualquier otra parte de
la Republica Mexicana o del extranjero y somesterse a domicilios convencionales.
ARTICULO III. La sociedad tendra por objeto:
1. La prestacion de todo tipo de servicios, en especial servicios de
manufactura o fabricacion de cosmeticos, articulos de belleza, para el cuidado y
la higiene personal, articulos de tocador, ornamentos y articulos de joyeria, a
todo tipo de personas fisicas o morales, comerciantes o no.
2. Importar, exportar, comprar, vender, distribuir, industrializar y, en
general, negociar con toda clase de materias primas, productos terminados o
semiterminados, mercaderias en general y efectos de comercio.
3. Importar, exportar, comprar, vender y negociar en cualquier otra forma
con toda clase de maquinaria, herramientas, equipo y partes y refacciones de los
mismos.
4. Solicitar, obtener, registrar, comprar, utilizar, ceder o en cualquier
otra forma disponer y adquirir marcas, nombres comerciales, derechos de autor,
patentes, invenciones y procesos.
<PAGE>
5. Establecer, arrendar, subarrendar, operar y poseer en cualquier forma
permitida por la ley, fabricas, talleres, plantas, almacenes, oficinas, tiendas
y demas establecimientos necesarios para la realizacion del objeto social, asi
como adquirir toda clase de negociaciones industriales y comerciales, incluyendo
acciones, participaciones e instrumentos por ellas emitidos.
6. Establecer sucursales, subsidiarias, agencias y oficinas de
representacion en Mexico y en el extranjero.
7. Representar o actuar como agente, en la Republica Mexicana y en el
extranjero, de empresas industriales o comerciales, sean nacionales o
extranjeras.
8. Adquirir, poseer, arrendar, subarrendar, comprar, vender y negociar en
cualquier otra forma permitida por la ley con bienes inmuebles, incluyendo la
adquisicion, establecimiento y operacion de laboratorios de investigacion.
9. Proporcionar toda clase de servicios tecnicos, administrativos de
asesoria y de supervision a empresas industriales y comerciales, tanto en Mexico
como en el extranjero, y recibir dichos servicios.
10. Proporcionar y recibir servicios de maquila y de fabricacion o
procesamiento de materiales a y de toda clase de entidades y negocios
industriales y comerciales.
11. Dar y tomar dinero en prestamo con o sin garantias de cualquier tipo,
emitir bonos, obligaciones y demas titulos de credito, con la intervencion de
las instituciones que en cada caso se requiera de acuerdo con la ley.
12. Garantizar obligaciones de terceros.
13. En general, realizar toda clase de actos y celebrar toda clase de
contratos, sean civiles o mercantiles, permitidos por la ley.
ARTICULO IV. La sociedad tendra duracion de noventa y nueve anos contados
a partir de la fecha de su constitucion.
ARTICULO V. El capital social es variable. El capital fijo sin derecho a
retiro es de N$10,000.00 M.N. (diez mil nuevos pesos 00/100, moneda nacional),
representado por 10,000 (diez mil) acciones ordinarias, nominativas, Serie "A",
con valor nominal de N$1.00 M.N. (un nuevo peso 00/100, moneda nacional) cada
una.
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Corresponderan a la Serie "A" aquellas acciones representativas de la
parte fija de capital social.
Corresponderan a la Serie "B" aquellas acciones representativas de la
parte variable de capital social.
En todo caso, la participacion de la inversion extranjera en el capital de
la sociedad habra de sujetarse a las disposiciones aplicables de la Ley de
Inversion Extranjera y su Reglamento.
Los certificados provisionales y los titulos definitivos representativos
de las acciones deberan cumplir con los requisitos establecidos en el articulo
ciento veinticinco de la Ley General de Sociedades Mercantiles; podran amparar
una o mas acciones y estaran firmados por dos miembros del Consejo de
Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO VI. Cada aumento o reduccion del capital social fijo sera
decretado por Asamblea General Extraordinaria de Accionistas. Cada aumento o
reduccion del capital social en la parte variable sera decretado por Asamblea
General Ordinaria de Accionistas.
En los terminos del articulo ciento treinta y dos de la Ley General de
Sociedades Mercantiles, en el caso de aumento de capital los accionistas tendran
derecho preferente para suscribir las acciones representativas del aumento en
proporcion al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales de Accionistas en las que se
acuerde aumento de capital seran publicadas en el Diario Oficial de la
Federacion. Ademas, las mencionadas resoluciones se notificaran a los
accionistas por medio de cartas que se enviaran por correo certificado con
anterioridad a la fecha de su publicacion, a las direcciones que aparezcan
inscritas en el Libro de Registro de Acciones de la sociedad. En caso de que
existan accionistas domiciliados en el extranjero, dichas cartas se enviaran por
correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes mencionado
dentro de los quince dias de calendario siguientes a la fecha de publicacion de
la resolucion. Sin embargo, si la totalidad del capital social estuviere
representado en alguna Asamblea que decretase incremento de capital, el periodo
de quince dias de calendario se computara a partir de la fecha de la Asamblea
correspondiente y los accionistas se daran por
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notificados de la resolucion desde la fecha de la Asamblea, por lo que la
publicacion y notificacion de la resolucion de incremento de capital no seran
necesarias.
ARTICULO VII. La sociedad podra adquirir las acciones representativas de
su propio capital social para su amortizacion con utilidades repartibles
mediante resolucion al efecto de la Asamblea General Extraordinaria de
Accionistas, sin disminucion del capital social. La designacion de las acciones
que hayan de ser amortizadas se hara por sorteo, en los terminos y condiciones
que disponga la Asamblea General Extraordinaria de Accionistas o, por delegacion
especifica de esta, el Conseuo de Administracion, sujetandose al monto maximo de
utilidades repartibles que habra de ser fijado por la propia Asamblea. Los
titulos de las acciones amortizadas quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII. La administracion de la sociedad estara confiada a un
Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de los mismos; podran ser reelectos y recibiran las
remuneraciones que determine la Asamblea de Accionistas.
ARTICULO IX. En el evento de que la sociedad sea administrada por un
Consejo de Administracion, cualquier accionista o grupo de accionistas que
represente cuando menos el veinticinco por ciento del capital social tendra el
derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerza el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
ARTICULO X. El Consejo de Administracion o el Administrador Unico, en su
caso, sera el representante legal de la sociedad y tendra las siguientes
facultades y obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las facultades
generales y las especiales que requieran de clausula especial de acuerdo con la
ley, sin limitacion alguna, de conformidad con lo dispuesto por el primer
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para
el Distrito Federal y articulos correlativos en los Codigos Civiles para las
entidades federativas de los Estados Unidos
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Mexicanos, estando por lo tanto facultado para desistirse de procedimientos, aun
del juicio de amparo; formular querellas y denuncias penales y desistirse de
ellas; coadyuvar con el Ministerio Publico y otorgar perdon; transigir;
someterse a arbitraje; formular y absolver posiciones; recusar jueces; recibir
pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penales, civiles, administrativos y del trabajo; 2. Administrar bienes de
acuerdo con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 3. Ejecutar actos de dominio de acuerdo con lo previsto en el
tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos; 4. Suscribir
titulos de credito de conformidad con el articulo noveno de la Ley General de
Titulos y Operaciones de Credito; 5. Abrir, operar y cerrar cuentas bancarias a
nombre de la sociedad, en el pais y en el extranjero, en moneda nacional y en
moneda extranjera, y designar a las personas que puedan girar contra las mismas;
6. Nombrar y remover al director general y demas directores, gerentes,
funcionarios y empleados de la sociedad y determinar sus condiciones de trabajo,
remuneraciones y facultades; 7. Formular reglamentos interiores de trabajo; 8.
Convocar Asambleas de Accionistas y ejecutar sus resoluciones; 9. Llevar a cabo
todos los actos autorizados por estos estatutos o que sean consecuencia de los
mismos; y 10. Conferir poderes generales y especiales en los terminos de los
parrafos uno, dos, tres, cuatro y cinco anteriores, con o sin facultades de
substitucion, asi como revocar los poderes que hubieren sido otorgados por la
sociedad.
ARTICULO XI. Cuando la sociedad sea administrada por organo colegiado el
Presidente y el Secretario del Consejo de Administracion seran designados por la
Asamblea de Accionistas o por el Consejo de Administracion, y tendran las
facultades que se les otorguen al ser designados. El Secretario podra ser o no
miembro del Consejo.
ARTICULO XII. Para que las sesiones del Consejo de Administracion sean
validas se requerira, en todo caso, la asistencia de la mayoria de sus miembros
o de sus respectivos suplentes. El Consejo de Administracion adoptara sus
resoluciones por mayoria de votos de los miembros presentes en cada Sesion.
Conforme a lo previsto en el articulo 143 de la Ley General de Sociedades
Mercantiles, los miembros del Consejo de Administracion podran adoptar
validamente resoluciones sin estar reunidos en formal Sesion, siempre que tales
resoluciones se confirmen por escrito por todos los miembros del Consejo de
Administracion. En todo caso sera responsabilidad de quien desempene el cargo de
Secretario del Consejo de
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Administracion de cerciorarse de la autenticidad de tales escritos, de su
formalizacion y de su conservacion.
ARTICULO XIII. El Presidente no tendra voto de calidad en caso de empate.
Si el Presidente o el Secretario no asisten a la Sesion, el cargo respectivo,
para efectos de la Sesion, sera ocupado por el Consejero designado por mayoria
de votos de los miembros presentes. Las actas de Sesiones del Consejo seran
transcritas en un libro especialmente autorizado y seran firmadas por quienes
actuen como Presidente y Secretario de cada Sesion, asi como por cualquier
Consejero que asistiere y deseare hacerlo.
ARTICULO XIV. Para garantizar el desempeno de sus cargos el Administrador
Unico o, en su caso, los Consejeros y sus respectivos Suplentes, al tomar
posesion, depositaran con la sociedad la cantidad de N$100.00 M.N. (cien nuevos
pesos 00/100, moneda nacional) cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido aprobada por Asamblea de Accionistas.
Los directores y demas funcionarios de la sociedad otorgaran las garantias que
determine la Asamblea de Accionistas o el Consejo de Administracion que los
designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO XV. La vigilancia de la sociedad estara encomendada a uno o dos
Comisarios, segun lo determine la Asamblea de Accionistas. Si la Asamblea lo
considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI. Los Comisarios no necesitan ser accionistas de la sociedad;
podran ser reelectos y desempenaran su cargo hasta que las personas designadas
para suplirlos tomen posesion de los mismos.
ARTICULO XVII. Los Comisarios tendran las facultades y las obligaciones
establecidas en el articulo ciento sesenta y seis de la Ley General de
Sociedades Mercantiles.
ARTICULO XVIII. Los Comisarios otorgaran las garantias senaladas en el
articulo XIV de estos estatutos para los Consejeros, y solo podran retirarlas
cuando su gestion hay sido aprobada por Asamblea de Accionistas.
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ASAMBLEAS DE ACCIONISTAS
ARTICULO XIX. Las Asambleas de Accionistas se celebraran en el domicilio
de la sociedad. Seran Extraordinarias las Asambleas convocadas para tratar
cualquiera de los asuntos incluidos en el articulo ciento ochenta y dos de la
Ley General de Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias.
ARTICULO XX. Las convocatorias par Asambleas de Accionistas deberan ser
expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de Administracion, segun sea el caso, o, en la medida en que lo permita
la ley, por el Comisario o Comisarios. Sin embargo, los accionistas que
representen cuando menos el treinta y tres por ciento del capital social podran
solicitar por escrito, en cualquier tiempo, que el Administrador Unico o el
Consejo de Administracion, segun sea el caso, o los Comisarios, convoquen a
Asamblea de Accionistas para tratar los asuntos especificados en su solicitud.
Cualquier accionista titular de una o mas acciones tendra el mismo derecho en
cualquiera de los casos senalados en el articulo ciento ochenta y cinco de la
Ley General de Sociedades Mercantiles. Si el Administrador Unico o el Presidente
o el Secretario del Consejo de Administracion segun sea el caso, o los
Comisarios, no expidieren la convocatoria dentro de los quince dias siguientes a
la fecha de la solicitud, un Jeuz de lo Civil o de Distrito del domicilio de la
sociedad hara la convocatoria a peticion de cualquier accionista interesado,
debiendo exhibir sus acciones para tal efecto, de conformidad con lo previsto
por la Ley.
ARTICULO XXI. Las convocatorias para Asambleas se publicaran en el Diario
Oficial de Federacion con por lo menos quince dias de anticipacion a la fecha
fijada para la Asamblea. Ademas, las convocatorias se notificaran por carta a
los accionistas, que se enviaran por correo certificado, con anterioridad a la
fecha de publicacion de la convocatoria a las direcciones que aparezcan en el
Libro de Registro de Acciones de la sociedad. Tratandose de accionistas
domiciliados en el extranjero, dichas cartas se enviaran por correo aereo
certificado. Las convocatorias contendran el Orden del Dia y estaran firmadas
por quien las expida.
ARTICULO XXII. Las Asambleas podran celebrarse sin previa publicacion de
convocatoria si el capital social esta representado en su totalidad y participa
al momento de la votacion.
ARTICULO XXIII. Solo los accionistas que aparezcan inscritos en el Libro
de Registro de Acciones de la sociedad como titulares de una o mas acciones
seran admitidos en Asambleas.
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ARTICULO XXIV. Los accionistas podran ser representados en Asambleas por
la persona o personas que designen mediante carta poder firmada ante dos
testigos, o por cualquier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV. Las actas de Asambleas se transcribiran a un libro
especialmente autorizado y deberan ser firmadas por las personas que hayan
fungido como Presidente y Secretario de la Asamblea, asi como por los Comisarios
presentes y por los accionistas o representantes de accionistas que desearen
firmar.
ARTICULO XXVI. Las Asambleas seran presididas por el Administrador Unico o
por el Presidente del Consejo de Administracion, segun sea el caso. Sin embargo,
en caso de que quien desempene alguno de los cargos mencionados estuviere
ausente, la Asamblea en cuestion sera presidida por la persona que se designe
por resolucion de la propia Asamblea. El Secretario del Consejo de
Administracion actuara como Secretario de las Asambleas de Accionistas; sin
embargo, en su ausencia, actuara como tal la persona designada por resolucion de
la Asamblea.
ARTICULO XXVII. Las Asambleas Ordinarias se celebraran cuando menos una
vez al ano dentro de los cuatro meses siguientes al cierre de cada ejercicio
social. Ademas de los asuntos especificados en el Orden del Dia, la Asamblea
Ordinaria Anual debera discutir, aprobar o modificar el informe del Consejo de
Administracion que incluya los informes y estados financieros a que se refiere
el enunciado general del articulo ciento setenta y dos de la Ley General de
Sociedades Mercantiles, tomando en cuenta el informe del Comisario o Comisarios,
y adoptar las medidas que juzgue oportunas; designar al Administrador Unico o a
los miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios, asi como determinar las remuneraciones al Administrador Unico o a
los miembros del Consejo de Administracion y a los Comisarios.
ARTICULO XXVIII. Para que sean validas las Asambleas Ordinarias de
Accionistas celebradas en virtud de primera o ulterior convocatoria deberan
reunir la presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO XXIX. Para que sean validas las Asambleas Extraordinarias de
Accionistas celebradas en virtud de primera convocatoria, deberan reunir, por
los menos, la presencia del sesenta y cinco por ciento de las acciones
representativas del capital social. En caso de segunda o ulterior convocatoria,
la Assemblea se considerara legalmente instalada si estuviere presente, cuando
menos, el cincuenta por ciento de las acciones representativas del capital
social.
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ARTICULO XXX. Tratandose de Asambleas Ordinarias, las resoluciones en
ellas adoptadas seran validas cuando se emita voto favorable por la mayoria de
las acciones presentes, siempre y cuando hubiere existido quorum de presencia en
los terminos del articulo XXVIII del los estatutos soicales.
En el caso de Asambleas Extraordinarias, sus resoluciones seran validas
cuando sean adoptadas por el voto favorable de las acciones que representen,
cuando menos, el cincuenta por ciento de las acciones que integren el capital
social.
ARTICULO XXXI. Conforme a lo dispuesto en el articulo 178 de la Ley
General de Sociedades Mercantiles, podran validamente los accionistas adoptar
resoluciones sin la celebracion de Asamblea, siempre y cuando tales resoluciones
consten por escrito firmado por todos los accionistas titulares de la totalidad
de las acciones con derecho a voto represenativas del capital de la sociedad. En
todo caso sera responsabilidad de quien desempene el cargo de Secretario del
Consejo de Administracion cerciorarse de la autenticidad de tales escritos, de
su formalizacion y de su conservacion.
INFORMACION FINANCIERA
ARTICULO XXXII. Dentro de los cuatro meses siguientes al cierre de cada
ejercicio social, el Administrador Unico o el Consejo de Administracion, en su
caso, formulara las siguientes estados fiancieros, los que deberan contener toda
la informacion que sea necesaria para reflejar el estado que guarda la situacion
financiera y operativa de la sociedad, en terminos del enuciado general del
articulo ciento setenta y dos de la Ley General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
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ARTICULO XXXIII. Los estados finacieros, junto con los documentos
justificativos, deberan ser entregados al Comisario o Comisarios con un mes de
anticipacion, cuando menos, a la fecha fijada para la Asamblea General Anual
Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO XXXIV. Dentro de los quince dias siguientes a la fecha en que les
hayan sido entregados los estados financieros, los Comisarios deberan entregar
al Administrador Unico o al Consejo de Administracion, segun sea el caso, un
informe para los accionistas respecto de la veracidad, suficiencia y
razonabilidad de la informacion que les haya sido presentada por el Consejo de
Administracion o por el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del Consejo
de Administracion, segun sea el caso, a disposicion de los accionistas, para su
revision, por lo menos durante los quince dias anteriores a la fecha senalada
para la Asamblea General Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse publicar y
depositar en la forma y terminos previstos en el articulo ciento setenta y siete
de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV. Las utilidades netas de cada ejercicio social seran
distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir, el fondo de reserva legal, hasta que sea igual a, cuando
menos, el veinte por ciento del capital social;
2) El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO XXXVI. Las perdidas, si las hubiere, seran reportadas
primeramente por los fondos de reserva y, si estos fueren insuficientes, por el
capital social pagado, en el entendido de que la responsabilidad de los
accionistas en relacion a las obligaciones de la sociedad estara limitada al
pago del valor nominal de sus respectivas acciones.
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DISOLUCION Y LIQUIDACION
ARTICULO XXXVII. La sociedad se disolvera en cualquiera de los supuestos
establecidos en la ley. Una vez disuelta la sociedad se pondra en liquidacion.
La liquidacion se encomendara a uno o mas liquidadores designados por Asamblea
Extraordinaria de Accionistas. Si la Asamblea no hiciere la designacion
correspondiente la hara un Juez de lo Civil o de Distrito del domicilio de la
sociedad a solicitud de cualquier accionista.
ARTICULO XXXVIII. En ausencia de instrucciones expresas en contrario dadas
a los liquidadores por la Asamblea, la liquidacion se llevara a cabo de acuerdo
con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance final de liquidacion;
5) Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion a su participacion en el capital social.
DISPOSICIONES GENERALES
ARTICULO XXXIX. Los socios fundadores, como tales, no se reservan
participacion alguna.
ARTICULO XL. Todo extranjero que en el acto de la constitucion o en
cualquier tiempo ulterior adquiera un interes o participacion social en la
sociedad se considerara por ese solo hecho como mexicano respecto de uno y otra,
y se entendera que conviene en no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
ALFONSO GONZALEZ ALONSO, notario treinta y uno del Distrito Federal,
C E R T I F I C A: Que la presente copia fotostatica, que consta de veinticinco
fojas, impresas por ambos lados, con excepcion de la primera y la diecinueve, es
fiel
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reproduccion de su original (de la uno a la dieciocho), de la a su vez copia
fotostatica, con medio sello impreso al extremo inferior izquierdo en original
(la diecinueve) y de la a su vez copia certificada (de la veinte a la
veinticinco), que tuvo a la vista y con las cuales la cotejo, levantando para
constancia el registro numero mil novecientos setenta y tres, en el libro de
registro de cotejos del protocolo de la notaria a su cargo.
Mexico, Distrito Federal, a vientitres de abril de mil novecientos noventa
y ocho.
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EXHIBIT 3.10(D)
Estatutos Sociales of QUALIFAX, S.A. de C.V.
Name, Domicile, Purpose, Duration and Nationality
Article 1. The name of the company is "Qualifax" which denomination shall
always be followed by the words "Sociedad Anonima de Capital Variable," or by
their abbreviation, "S.A. de C.V."
Article 2. The domicile of the company is Distrito Federal, Mexico.
However, the company may establish agencies or branches in any other part of
Mexico or a foreign territory, or designate conventional domiciles for the
execution of specific acts and contracts.
Article 3. The purpose of the company is:
1. To offer all types of services, specifically the creation and
manufacture of cosmetics, beauty products, personal hygiene products, skin care
products, ornaments and articles of jewelry.
2. To import, export, buy, sell, distribute, industrialize, and, in
general, do business with all classes of raw materials, finished or
semi-finished products, and any other types of commodities.
3. To import, export, buy, sell or do business with any class machinery,
tools, and other equipment and refinements pertaining to such machinery and
tools.
4. To solicit, obtain, register, purchase, utilize, dispose of and acquire
in any other form, trademarks, trade names, copyrights, patents, inventions and
processes.
5. To build, rent, sublease, operate or possess, in any manner permitted
by law, offices, factories, studios, stores, plants, warehouses and any other
establishments necessary to carry out the stated corporate purpose, as well as
to acquire and alienate all forms of commercial or industrial businesses,
including shares or participations in such businesses.
6. To establish branches, subsidiaries, agencies or offices in Mexico or
in any other country.
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7. To act as agent, or to represent in any other manner, all types of
companies and individuals, within or outside Mexico.
8. To acquire, possess, lease or sublease, purchase or sell, and negotiate
with, in any manner permitted by law, real property, including the acquisition,
establishment and operation of experimental laboratories.
9. To offer all types of technical service, administrative consulting and
supervision to industrial and commercial entities, in Mexico and abroad, and to
receive the same services from such other industrial and commercial entities.
10. To supply and receive services for the manufacture of cosmetics
products or to supply and receive processed materials related to such products
from or to all types of commercial and industrial entities.
11. To lend or borrow money by any means, with or without security, and to
issue bonds or other types of obligations, and to carry out acts for the purpose
of obtaining credit or granting credit. The foregoing shall be carried out in
each case under the supervision and intervention of those institutions whose
participation is required by law.
12. To guaranty the obligations of third parties.
13. In general, to carry out and perform any activities, civil or
commercial in nature, permitted by law.
Article 4. The duration of the company shall be 99 years, beginning with
the date of its incorporation.
Article 5. The capital stock shall be variable. The fixed portion of the
capital, which is not be subject to withdrawal, is Ps.$10,000.00 New Pesos (Ten
Thousand New Pesos), represented by 10,000 ordinary, Series "A" shares, with a
par value of Ps.$1.00 New Peso (One New Peso) per share.
The variable portion of the capital stock shall be designated as Series
"B" shares.
In any case, the participation of foreign investors in the capital stock
of the company shall be subject to the applicable provisions of the Law on
Foreign Investment and its applicable regulations.
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Stock certificates and provisional certificates shall comply with the
requirements specified in Article 125 of the General Corporations Law; stock
certificates may represent title to one or more shares and shall bear the
signature of two members of the Board of Directors or by the Sole Administrator,
as the case may be.
Article 6. Each increase or reduction of the fixed capital stock of the
company shall be declared by an Extraordinary Stockholders' Meeting. Each
increase or reduction of the variable capital stock of the company shall be
declared by an Ordinary Shareholders' Meeting.
According to the provisions of Article 132 of the General Corporations
Law, in the case of increase in the capital stock of the corporation,
stockholders shall have a preemptive right to subscribe to those shares
representing the increase in the capital stock of the company. In such a case,
the subscription right may be exercised in proportion to the number of
outstanding shares which the stockholder already owns.
Resolutions adopted at Stockholders' Meetings that approve any increase in
the capital stock of the company shall by published in the Official Gazette of
the Federation (Diario Oficial de la Federacion). Additionally, notice of the
adoption of such resolutions shall be sent to the Stockholders by certified mail
prior to the date of publication, to those addresses that are inscribed in the
Stock Registry Book of the company. In the event that there are Stockholders
domiciled outside of Mexico, notice shall be sent by certified air mail.
The Stockholders may exercise their preemptive rights within fifteen (15)
calendar days following the date of publication of the resolution adopting an
increase in the capital stock of the company. However, if the entire capital
stock of the company shall have been represented in any meeting adopting an
increase in capital stock, the period of fifteen (15) calendar days shall be
counted from the date of such meeting.
Article 7. The company may reacquire shares representing the capital stock
of the company for their redemption with dividends through the means specified
by resolution of an Extraordinary Stockholders' Meeting, without diminution of
the capital stock of the company. The designation of those shares that shall be
redeemed shall be made by means of a lottery, the terms and conditions of which
shall be determined by the Extraordinary Stockholders' Meeting, or by their
delegation of such powers to the Board of Directors. The foregoing redemption
right shall be subject to the maximum amount of profits that may be issued for
such a purpose, such amount to be determined by the Extraordinary Stockholders'
Meeting. Title to those shares that shall have been redeemed according to the
provisions of this paragraph shall be deemed extinguished upon redemption.
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ADMINISTRATION
Article 8. The administration of the company shall be entrusted to a Sole
Administrator or to a Board of Directors composed of the number of Directors
determined by the Ordinary Stockholders' Meeting. If the Stockholders shall deem
it necessary, they may designate an Alternate Sole Administrator or Alternate
members of the Board of Directors, as the case may be. The Sole Administrator or
the members of the Board of Directors, as the case may be, need not be
Stockholders. They shall hold their offices until their successors take their
place, but they may be reelected and shall receive compensation as determined by
the Ordinary Stockholders' Meeting.
Article 9. In the event that the company is administered by a Board of
Directors, any Stockholder or group of Stockholders representing at least 25%
(Twenty-Five Percent) of the capital stock of the company shall have the right
to appoint one member of the Board of Directors and his/her Alternate. In the
event that no Stockholder or group of Stockholders exercises the minority
Stockholders' rights established by this Article, all the members of the Board
of Directors shall be appointed by a majority of Stockholder votes.
Article 10. The Board of Directors or the Sole Administrator, as the case
may be, shall have the following authority and obligations:
1. General power of attorney for lawsuits and collections, with the
broadest power as permitted by law, in the terms of the first paragraph of
Article 2554 of the Civil Code for the Federal District and its correlative
Articles of any Civil Code of the states comprising the United Mexican States
(the "Civil Code"), with all general and such special powers as may be required,
including those provided in Article 2587 of the Civil Code, wherefore they will
have, without limiting the generality of the foregoing, the following authority:
to represent the company before Federal, State, Municipal, Administrative and
Judicial authorities, before the Secretary of Labor and before Conciliation and
Arbitration Boards and to sign such documents as may be required in the exercise
of this power of attorney; to exercise all types of rights and actions before
any and all authorities and Boards of Conciliation and Arbitration; to submit to
any jurisdiction; to promote and withdraw from litigation; to file charges and
criminal complaints and appear as offended party and assist the District
Attorney and grant pardons; to compromise; to submit to arbitration; to take and
answer depositions; to accept and release all kind of guarantees; to assign
property and to perform all other actions which are expressly determined by law.
2. General power of attorney for acts of administration, under the terms
of the second paragraph of Article 2554 of the Civil Code, including the
authority to
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execute, amend, carry out and rescind all kind of contracts and agreements, to
obtain loans and in general, to carry out all acts that are related directly or
indirectly to the corporate purposes.
3. General power of attorney for acts of ownership, in the terms of the
third paragraph of Article 2554 of the Civil Code, including the authority to
acquire personal and real property, to transfer title to as well as to encumber
by pledge, mortgage or otherwise, personal and real property.
4. Power to issue, sign and endorse negotiable instruments in accordance
with Article 9 of the General Law of Negotiable Instruments and Credit
Transactions.
5. Power to establish branches and agencies in any location of the United
Mexican States or abroad and to close such branches or agencies.
6. Power to designate and remove managers, officers and employees of the
company and to determine their powers, duties and remuneration.
7. Power to formulate internal regulations affecting employment in the
company.
8. Power to convene Stockholders' Meetings and to execute their
resolutions.
9. Power to exercise any other authority granted to it in these estatutos
and those powers that are by implication necessary to carry out the terms of the
estatutos.
10. Power to confer and revoke general and special powers of attorney
within the scope of the aforementioned powers.
Article 11. To facilitate the administration of the company when the Board
of Directors are in session, a President and a Secretary of the Board of
Directors shall be designated by the Ordinary Stockholders or by the Board of
Directors, such designation to be made for the purpose of performance of
specific duties on the part of the President and Secretary. The Secretary does
not have to be a member of the Board of Directors.
Article 12. In order for meetings of the Board of Directors to be legally
held, the attendance of at least the majority of the Directors or their
respective alternates shall be required. Resolutions of the Board of Directors
shall be valid only if adopted by the affirmative vote of the majority of the
members of the Board of Directors present at the meeting.
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In accordance with the provisions of Article 143 of the General
Corporations Law, the members of the Board of Directors may adopt valid
resolutions without a formal meeting, provided that such resolutions, which
shall be made in writing, are signed by all the members of the Board of
Directors. In any case, it shall be the responsibility of the person designated
as Secretary of the Board of Directors to ensure the authenticity of the
signatures, and their preservation in the corporate records.
Article 13. The President of the Board of Directors does not hold voting
power to break any impasse that may occur during any meeting of the Board of
Directors. If the President or the Secretary do not preside over any meeting of
the Board of Directors, their respective duties shall be carried out by a board
member designated by the majority vote of those Directors who are present at the
meeting. All acts of the Board shall be transcribed in a Corporate Minutes Book,
which shall be signed by the President and Secretary of the Board of Directors,
or any other Director attending such a meeting.
Article 14. In order to guarantee the performance of their specific
duties, the Sole Administrator, or as the case may be, the Board of Directors
and their respective Alternates, shall deposit with the company PsN$100.00 (One
Hundred New Pesos) or in the alternative, a surety bond granted in favor of the
company in the same amount. Each member of the Board of Directors, or the Sole
Administrator, as the case may be, may not withdraw the amount granted to the
company as a guaranty until the discharge of their duties shall have been
approved by the Ordinary Stockholders' Meeting. Officers and other officials
shall grant to the company guaranties in the manner prescribed, if any, by the
Ordinary Stockholders' Meeting or the Board of Directors.
OVERSIGHT OF THE COMPANY
Article 15. The oversight of the company shall be entrusted to one or more
Statutory Auditors, as may be determined by the Stockholders in a General
Meeting. An Alternate Statutory Auditor may be designated for each Statutory
Auditor.
Article 16. The Statutory Auditors need not also be Stockholders of the
company; they may be reelected and shall continue to discharge their duties
until their successors take office.
Article 17. The Statutory Auditors shall have the powers and obligations
granted to them by Article 166 of the General Corporations Law.
Article 18. The Statutory Auditors shall grant to the company the guaranty
amounts mentioned in Article 14 of these estatutos, and may only withdraw such
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guaranty amounts if the discharge of their duties shall have been approved by
the Ordinary Stockholders' Meeting.
STOCKHOLDERS' MEETINGS
Article 19. Stockholders' meetings shall take place at the corporate
domicile. Those meetings which shall determine matters pursuant to Article 182
of the General Corporations Law shall be known as Extraordinary Stockholders'
Meetings. All other meetings shall be designated as Ordinary Stockholders'
Meetings.
Article 20. Calls for all Stockholders' Meetings shall be made by the Sole
Administrator or the President or Secretary of the Board of Directors, as the
case may be, in the manner permitted by law, or may be made by the Statutory
Auditor or Auditors. However, any Stockholder or group of Stockholders
representing at least 33% (Thirty-Three Percent) of the capital stock of the
company may, by written demand at any time, require the Sole Administrator or
the President or Secretary of the Board of Directors, or the Statutory Auditors,
to convene a meeting of the Stockholders to pass specifically upon those issues
enumerated in the demand letter. Any Stockholder holding at least one share of
the capital stock of the company shall have the same rights described herein in
the case of an event specified by Article 185 of the General Corporations Law.
If after the demand letter is served by the Stockholder or Stockholders holding
the rights mentioned in this Article 20 on the appropriate person, and such
person does not convene a meeting of the Stockholders within fifteen (15) days
following the date of the demand letter, such demand may be made upon any Civil
or District Judge by any interested Stockholder.
Article 21. Calls for Stockholders' Meetings shall be published in the
Official Gazette of the Federation (Diario Oficial de la Federacion) at least
fifteen (15) days prior to the date fixed for such a meeting. Additionally,
notice of calls shall be sent to Stockholders by certified mail prior to the
date of publication. For those Stockholders who are domiciled outside of Mexico,
notice shall be sent by certified air mail. Calls and notices of calls for
Stockholders' Meetings shall contain an Agenda to be passed upon or discussed at
such a meeting and shall be signed by the person sending such notice.
Article 22. Stockholders' Meetings may be held without the need for prior
publication if the entire capital stock of the company is represented at any
meeting.
Article 23. Only those Stockholders whose names are registered in the
Stock Registry Book of the company shall be admitted to Stockholders' Meetings.
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Article 24. Stockholders may be represented at the meetings by an
attorney-in-fact holding a general or a special power of attorney or by an
attorney-in-fact designated by means of a simple letter of proxy.
Article 25. The acts of the Stockholders' Meetings shall be transcribed in
a Minute Book that shall be signed by those serving as President and Secretary
at the meeting, by the Statutory Auditors who are present at the meeting and by
those Stockholders or their representatives who wish to sign the Minute Book.
Article 26. Stockholders' meetings shall be presided over by the Sole
Administrator or the Chairman of the Board of Directors, as the case may be. In
their absence, such meetings shall be presided over by the person designated for
such purposes by the majority of those present at the corresponding meeting. The
Secretary of the Board of Directors shall act as Secretary of Stockholders'
Meetings and, in his absence, the person designated for such purposes by
Stockholders in the corresponding meeting.
Article 27. Ordinary Stockholders' Meetings shall take place at least once
a year within four (4) months following the close of the fiscal year. In
addition to the subjects specified in the Agenda, the Annual Stockholders'
Meeting may specifically discuss, approve and modify the report of the Board of
Directors, including reports on the financial condition of the company as
required under Article 172 of the General Corporations Law; the Stockholders
shall also receive the reports or accounts of the Statutory Auditors.
Article 28. Ordinary Stockholders' Meetings shall be considered legally
held on a first or subsequent call if Stockholders holding at least 50% (fifty
percent) of all outstanding voting capital stock are present or represented at
such a meeting.
Article 29. Extraordinary Stockholders' Meetings shall be considered
legally held on a first call if at least 75% (seventy-five percent) of the
outstanding voting capital stock of the company are present or represented in
such meetings; in the event of a second or subsequent call, the Extraordinary
Stockholders' Meeting shall be considered legally if at least 50% (fifty
percent) of the outstanding voting capital stock of the company are present or
represented at such meetings.
Article 30. Resolutions of Ordinary Stockholders' Meetings shall be valid
if adopted by the affirmative vote of Stockholders representing a majority of
the outstanding capital stock of the company present or represented at the
meeting, and when there shall have been convened a quorum as that term is
defined in Article 28.
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In the event of an Extraordinary Shareholders' Meeting, their
resolutions shall be valid if adopted by the favorable vote of Stockholders
representing 50% (fifty per cent) of the total outstanding voting capital stock
of the company.
Article 31. In conformance with Article 178 of the General Corporations
Law, the Stockholders may adopt valid resolutions without formally convening in
a meeting by written consent signed by all the Stockholders of the company
entitled to vote. In such a case, it shall be the responsibility of the person
designated as the Secretary of the Board of Directors to assure the authenticity
of the Stockholders' signatures and to keep a record of the same.
FINANCIAL REPORTS
Article 32. Within four (4) months following the close of each fiscal
year, the Sole Administrator or the Board of Directors, as the case may be,
shall formulate the following financial reports respecting the company, which
shall contain all the information necessary to reflect the financial and
operational state of the company, as such reporting is required by Article 172
of the General Corporations Law:
a) The financial state of the company at the date of the close of the
fiscal year (Annual Financial Report).
b) Reports showing explanations and classifications of the operational
state of the company during the preceding fiscal year (Annual Business Report).
c) Reports indicating changes in the financial state of the company during
the course of the preceding fiscal year.
d) Reports indicating any changes in the items that make up the capital
stock of the company during the preceding fiscal year.
e) Any notes or clarifications accompanying any of the preceding reports.
Article 33. All financial and business reports, together with any
documents justifying the findings contained in the reports, shall be delivered
to the Statutory Auditor or Auditors, for their inspection, within one (1) month
of the date fixed for the Annual Shareholders' Meeting.
Article 34. Within fifteen (15) days following the date of receipt of
financial and business reports, the Statutory Auditors shall issue to the Sole
Administrator or to the Board of Directors, as the case may be, a written
opinion for the Stockholders discussing
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the veracity, sufficiency, and reasonability of the information which had been
presented to the Auditor(s) by the Sole Administrator or by the Board of
Directors, as the case may be.
The aforementioned documents shall remain in the possession of the Sole
Administrator or the Board of Directors, as the case may be, but shall be
available to the Stockholders for their review at least fifteen (15) days prior
to the Annual Stockholders' Meeting.
The financial reports, once approved, shall be sent for publication and
deposited in the manner prescribed by Article 177 of the General Corporations
Law.
Article 35. The net profits obtained in each fiscal year shall be applied
as follows:
1) 5% (five per cent) of the net profits shall be set aside for creating
or restoring the Legal Reserve, as the case may be, until it equals one-fifth of
the corporate capital stock.
2) The remainder shall be distributed as determined by the Stockholders in
an Ordinary Meeting.
Article 36. Losses, if there shall have been any, shall be applied against
the Legal Reserve, and if such Reserve is insufficient, against paid capital
stock, with the understanding that the obligations of the Stockholders with
respect to any obligations of the company shall be limited to the extent of the
par value of their respective shares.
DISSOLUTION AND LIQUIDATION
Article 37. The company shall be dissolved in such manner as generally
prescribed by applicable law. Once dissolved, the company shall be liquidated.
The liquidation shall be entrusted in one or more liquidators designated by the
Stockholders' in an Extraordinary Meeting resolving upon dissolution. If no such
designation shall have been made, the dissolution of the company shall be
entrusted in a Civil or District Judge of the corporate domicile at the request
of any Stockholder.
Article 38. In the event that the Stockholders shall not give specific
instructions to the liquidator(s), the purpose of the liquidation shall proceed
upon the following general grounds.
1) Conclusion of all pending business in the manner least prejudicial to
creditors and the Stockholders.
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2) Recovery of all debts and accounts receivable and the payment by the
company of any outstanding debts.
3) The sale of all the assets of the company.
4) Preparation of final balances after liquidation.
5) Distribution of any remaining proceeds of the liquidation, if any,
among the Stockholders in proportion to their participation in the capital stock
of the company.
GENERAL PROVISIONS
Article 39. The promoters of the company, as such may exist, shall hold no
participation in the company upon the date of incorporation.
Article 40. The company is of Mexican nationality. Any foreigner who, at
the time of incorporation or at any time thereafter, acquires a corporate
interest or participation in the company shall be considered by that fact alone
as Mexican with respect to such interest or participation and it shall be
understood that such foreigner agrees not to invoke the protection of its
Government under penalty, in case of failure to comply with such agreement, of
forfeiture of such interest or participation in favor of the Mexican Nation.
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EXHIBIT 3.11
INSTRUMENTO NUMERO
VEINTINUEVE MIL SEISCIENTOS SIETE
En la Ciudad de Mexico, Distrito Federal, a los dos dias del mes de
enero de mil novecientos noventa y uno.
ROBERTO NUNEZ Y BANDERA, Notario en Ejercicio, Titular de la Notaria
numero Uno de este Distrito, hago constar:
El CONTRATO DE SOCIEDAD que otorgan JAFRA COSMETICS, SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, representada por la Licenciada Leticia Navarro
Ochoa, PLUMIBOL, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada por el Senor
Miquel Angel Castaneda Perez, CALZADA MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA
DE CAPITAL VARIABLE, representada por el Senor Gustavo Nadrinan Micolta, BRAUN
DE MEXICO Y COMPANIA, DE CAPITAL VARIABLE, representada por el Licenciado Luis
Alfonso Cervantes Numiz, y ORAL-B LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, representada por el Senor Victor Manuel Rocha Duran, en los terminos
de las siguientes declaraciones y clausulas:
DECLARACIONES
I. Los comparecientes me exhiben y agrego al apendice de este
protocolo con el numero de este instrumento y letra "A", el permiso otorgado por
la Secretaria de Relaciones Exteriores, que en su parte conducente dice:
<PAGE>
Un Sello: ESTADOS UNIDOS MEXICANOS. SECRETARIA DE RELACIONES
EXTERIORES MEXICO. FOLIO NO. 83292. EXPEDIENTE NO. 09/53752/90. PERMISO NO.
047743.
H. SECRETARIA DE RELACIONES EXTERIORES. DIRECCION GENERAL DE ASUNTOS
JURIDICOS. DIRECCION DE PERMISOS ARTICULO 27 CONSTUTUCIONAL...
...Tlatelolco, D.F., a veintinueve de agosto de mil novecientos
noventa.
(X) SI Se concede permiso para constituir una sociedad que se
denominara REDAY, S.A. DE C.V. ...
...En caso de proceder este permiso, quedara condicionado a que en
la escritura constitutiva se inserte la clausula de exclusion de extranjeros
prevista en el Articulo 30 o el convenio que senala el Articulo 31, ambos del
Reglamento de la Ley para Promover la Inversion Mexicana y Regular la Inversion
Extranjera.
El Notario Publico ante quien se protocolice este permiso, debera
dar aviso a la Secretaria de Relaciones Exteriores dentro de los 90 dias
naturales a partir de la fecha de autorizacion de la escritura sobre el uso del
permiso o, en su caso, del convenio sobra la renuncia a que se hace referencia
en el parrafo que antecede.
Lo anterior se comunica con fundamento en el Articulo 27
Constitucional Fraccion I, 1o. de su ley Organica, 17 de la Ley para Promover la
Inversion Mexicana y Regular la Inversion Extranjera y en los terminos del
Articulo 28 fraccion V de la Ley Organica de la Administracion Publica Federal.
Este permiso dejara de surtir efectos si
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no se hace uso del mismo dentro de los 90 dias habiles siguientes a la fecha de
su expedicion.
SUFRAGIO EFECTIVO. NO REELECCION P.O. DEL SECRETARIO. EL DIRECTOR DE
PERMISOS ARTICULO 27 CONSTITUCIONAL. LIC. LUIS E. RICAUD VELASCO (FIRMADO).
Esto expuesto los comparecientes otorgan:
CLAUSULA UNICA
Los comparecientes constituyen una SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, de acuerdo con la Ley General de Sociedades Mercantiles, la que se
regira pro los siguientes:
E S T A T U T O S
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO PRIMERO. La denominacion de la sociedad es "REDAY" y debera
ir siempre seguida de las palabras sociedad anonima de capital variable, o de su
abreviatura "S.A. de C.V.".
ARTICULO SEGUNDO. El domicilio de la sociedad es el Distrito
Federal, Mexico; sin embargo, podra establecer agencias o sucursales en
cualquier otra parte de la Republica Mexicana o del extranjero y someterse a
domicilios convencionales.
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ARTICULO TERCERO. La sociedad tendra por objecto:
1) Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrendamiento, en comodato o en subcomodato, administrar, operar o poseer en
cualquier forma permitida por la ley fabricas, plantas industriales, talleres,
laboratorios, almacenes o bodegas, oficinas tiendas y otros establecimientos y
bienes inmuebles con el fin de otorgar gratuita u onerosamente su uso y goce a
terceros en virtud de contratos de arrendamiento, subarrendamiento, comodato o
subcomodato, o cualquier otro titulo juridico;
2) Construir, edificar, reparar, reconstruir, demoler, planear y
disenar toda clase de casas habitacion, edificios, estructuras, fabricas,
plantas industriales, talleres, laboratorios, almacenes o bodegas, oficinas,
tiendas y otros establecimientos y bienes inmuebles;
3) Adquirir, enanjenar, importar, exportar, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes muebles;
4) Prestar y recibir servicios de contruccion, diseno y consultoria,
asi como servicios administrativos y de supervision;
5) Prestar toda clase de servicios tecnicos, admistrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios;
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6) Solicitar, comprar, vender, dar or tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales, derechos de
autor, patentes, invenciones y procesos, asi como disponer de ellos;
7) Actuar como contratista, subcontratista, agente or representante
y designar subcontratistas, agentes o representantes;
8) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o mercantiles,
y formar parte de ellas;
9) Representar o ser agente o comisionista de negociaciones
comerciales o industriales o extranjeras;
10) Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito con la
intervencion de las instituciones senaladas por la ley, y otorgar fianzas o
garantias de cualquier clase respecto de obligaciones contraidas o de titulos
emitidos o aceptados por la propia sociedad o por terceros;
11) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito; y
12) Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ARTICULO CUARTO. La sociedad tendra una duracion de noventa y nueve
anos contados a partir de la fecha de su constitucion.
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CAPITAL SOCIAL Y ACCIONES
ARTICULO QUINTO. El capital social es variable. El capital fijo sin
derecho a retiro es de DIEZ MILLIONES DE PESOS, Moneda Nacional, representado
por Diez Mil acciones ordinarias, nominativas, con valor nominal de MIL PESOS,
Moneda Nacional cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de
la parte fija del capital social que sean propiedad de personas fisicas o
morales cuya inversion se considere como mexicana en los terminos de la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera. Corresponderan
a la Serie "A-1" aquellas acciones representativas de la parte variable del
capital social que sean propiedad de personas fisicas o morales cuya inversion
se considere como mexicana en los terminos de la Ley para Promover la Inversion
Mexicana y Regular la Inversion Extranjera.
Corresponderan a la Serie "B" aquellas acciones representativas de
la parte fija del capital social que sean propiedad de personas fisicas o
morales cuya inversion se considere como extranjera en los terminos de la Ley
para Promover la Inversion Mexicana y Regular la Inversion Extranjera.
Corresponderan a la Serie "B-1" aquellas acciones representativas de la parte
variable del capital social que sean propiedad de personas fisicas o morales
cuya inversion se considere como extranjera en los terminos de la Ley para
Promover la Inversion Mexicana y Regular la Inversion Extranjera.
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En todo caso, la participacion de la inversion extranjera en el
capital de la sociedad habra de sujetarse a las disposiciones aplicables a la
Ley para Promover la Inversion Mexicana y Regular la Inversion Extranjera.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitors establecidos
en el articulo ciento vienticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas acciones y estaran firmados por dos miembros del
Consejo de Administracion o por el Administrador Unico, segun sea el case.
ARTICULO SEXTO. Cada aumento o reduccion del capital social, ya sea
que corresponda al capital fijo o a la parte variable, sera decretado por
Asamblea General Estraordinaria de Accionistas, de confirmidad con lo dispuesto
por la Ley General de Sociedades Mercantiles.
En los terminos del articulo ciento treinta y dos de la Ley General
de Sociedades Mercantiles, en el caso de aumento de capital los accionistas
tendran derecho preferente para sucribir las acciones representativas del
aumento en proporcion al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales Extraordinarias de
Accionistas en las que se acuerde aumento de capital seran publicadas en el
periodico oficial del domicilio de la sociedad. Ademas, las mencionadas
resoluciones se notificaran a los accionistas por medio de cartas que se
enviaran por correo certificado con anterioridad a la fecha de su publicacion, a
las direcciones que aparezcan registradas en el
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Libro de Registro de Acciones de la sociedad. En caso de que existan accionistas
domiciliados en el extranjero, dichas cartas se enviaran por correo aereo
certificado.
Los accionistas deberan ejercer su derecho preferente antes
mencionado dentro de los quince dias de calendario siguientes a la fecha de
publicacion de la resolucion. Sin embargo, si la totalidad del capital social
estuviere representado en alguna Asamblea que decretase increments de capital,
el periodo de quince dias de calendario se computara a partir de la fecha de la
Asamblea correspondiente y los accionistas se daran por notificados de la
resolucion desde la fecha de la Asamblea, por lo que la publicacion y
notificacion de la resolucion de incremento de capital no seran necesarias.
ARTICULO SEPTIMO. La sociedad podra adquirir las acciones
representativas de su propio capital social para su amortizacion con utilidades
repartibles mediante resolucion al efecto de la Asamblea General Extraordinaria
de Accionistas, sin disminucion del capital social. La designacion de las
acciones que hayan de ser amortizadas se hara por sorteo, en los terminos y
condiciones que disponga la Asamblea General Extraordinaria de Accionistas o,
por delegacion especifica de esta, el Consejo de Administracion sujetandose al
monto maximo de utilidades repartibles que habra de ser fijado por la propia
Asamblea. Los titulos de las acciones amortizadas quedaran extinguidos.
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ADMINISTRACION DE LA SOCIEDAD
ARTICULO OCTAVO. La administracion de la sociedad estara confiada a
un Administrador Unico o a un Consejo de Administracion formado por el numero de
miembros que determine la Asamblea de Accionistas. Si la Asamblea lo considera
pertinente, podra designar un Administrador Unico Suplente o a Consejeros
Suplentes, segun sea el caso. Los Consejeros y sus Suplentes podran ser o no
accionistas; desempenaran sus cargos hasta que las personas designadas para
substituirlos tomen posesion de sus puestos; podran ser reelectos y recibiran
las remuneraciones que determine la Asamblea de Accionistas.
ARTICULO NOVENO. En el evento de que la sociedad sea administrada
por un Consejo de Administracion, cualquier accionista o grupo de accionistas
que represente cuando menos el veinticinco por ciento del capital social tendra
el derecho de designar a un miembro del Consejo y a su Suplente, si hubiere
Suplentes. En caso de que ningun accionista o grupo de accionistas ejerciera el
derecho de las minorias establecido en este articulo, todos los miembros del
Consejo de Administracion seran designados por mayoria de votos.
ARTICULO DECIMO. El Consejo de Administracion o el Administrador
Unico, en su caso, sera el representante legal de la sociedad y tendra las
siguientes facultades y oblicaciones: 1.- Ejercitar el poder para pleitos y
cobranzas, con todas las facultades, generales y las especiales que requieran de
clausula especial de acuerdo con la ley, sin limitacion alguna, de conformidad
con lo dispuesto por el primer parrafo del
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articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlatives de los Codigos Civiles de las entidades
federativas de los Estados Unidos Mexicanos, estando por lo tanto facultado para
desistirse de procedimientos, aun del juicio de amparo, formular querellas y
denuncias penales y desistirse de ellas; coadyuvar con el Ministerio Publico y
otorgar perdon; transigir; someterse a arbitraje formular y absolver posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
autoridades y tribunales penales, civiles, administrativos y del trabajo; 2.-
Administrar bienes de acuerdo con lo dispuesto por el segundo parrafo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades
federativas de los Estados Unidos Mexicanos; 3.- Ejecutar actos de dominio de
acuerdo con lo previsto en el tercer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos de los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 4.- Suscribir titulos de credito de conformidad con el
articulo noveno de la Ley General de Titulos y Operaciones de Credito; 5.-
Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad y designar a
las personas que puedan girar contra las mismas; 6.- Nombrar y remover al
director general y demas directores, gerentes, funcionarios y empleados de la
sociedad y determinar sus condiciones de trabajo, remuneraciones y facultades;
7.- Formular reglamentos interiores de trabajo; 8.- Convocar Asambleas de
Accionistas y ejecutar sus resoluciones; 9.- Llevar a cabo todos
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los actos autorizados por estos estatutos o que sean consecuencia de los mismos;
10.- Conferir poderes generales y especiales en los terminos de los puntos uno,
dos, tres, cuatro y cinco anteriores, con o sin facultades de substitucion, asi
como revocar los poderes que hubieren sido otorgados.
ARTICULO DECIMO PRIMERO. Cuando la sociedad sea administrada por
organo colegiado el Presidente y el Secretario del Consejo de Administracion
seran designados por la Asamblea de Accionistas o por el Consejo de
Administracion, y tendran las facultades que se les otorguen al ser designados.
El Secretario podra ser o no miembro del Consejo.
ARTICULO DECIMO SEGUNDO. Para que las sesiones del Consejo de
Administracion sean validas se requerira, en todo caso, la asistencia de la
mayoria de sus miembros o de sus respectivos suplentes. El Consejo de
Administracion adoptara sus resoluciones por mayoria de votos de los miembros
presentes en cada Sesion.
ARTICULO DECIMO TERCERO. El Presidente no tendra voto de calidad en
caso de empate. Si el Presidente o el Secretario no asisten a la Sesion, el
cargo respective, para efectos de la Sesion, sera ocupado por el Consejero
designado por mayoria de votos de los miembros presentes. Las actas de Sesiones
del Consejo seran transcritas en un libro especialmente autorizado y seran
firmadas por quienes actuen como Presidente y Secretario de cada Sesion, asi
como por cualquier Consejero que asistiere y deseare hacerlo.
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ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus cargos
el Administrador Unico o, en su caso, los Consejeros y sus respectivos
Suplentes, al tomer posesion, depositaran con la sociedad la cantidad de cien
mil pesos, moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido aprobada por Asamblea de Accionistas.
Los directores y demas funcionarios de la sociedad otorgaran las garantias que
determine la Asamblea de Accionistas o el Consejo de Administracion que los
designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO DECIMO QUINTO. La vigilancia de la sociedad estara
encomendada a uno o dos Comisarios, segun lo determine la Asamblea de
Accionistas. Si la Asamblea lo considerare pertinente designara uno o dos
Comisarios Suplentes.
ARTICULO DECIMO SEXTO. Los comisarios no necesitan ser accionistas
de la sociedad; podran ser reelectos y desempenaran su cargo hasta que las
personas designadas para suplirlos tomen posesion de los mismos.
ARTICULO DECIMO SEPTIMO. Los comisarios tendran las facultades y las
obligaciones establecidas en el articulo ciento sesenta y seis de la Ley General
de Sociedades Mercantiles.
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ARTICULO DECIMO OCTAVO. Los Comisarios otorgaran las garantias
senaladas en el articulo decimo cuarto de estos estatutos para los Consejeros y
solo podran retiralras cuando su gestion haya sido aprobada pro Asamblea de
Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO DECIMO NOVENO. Las Asambleas de Accionistas se celebraran
en el domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas
para tratar cualquiera de los asuntos incluidos en el articulo ciento ochenta y
o dos de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas
seran Ordinarias.
ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas
deberan ser hechas por el Administrador Unico o por el Presidente o el
Secretario del Conejo de Administracion, segun sea el caso, o, en la medida en
que lo permita la Ley, por el Comisario o Comisarios. Sin embargo, los
accionistas que representen cuando menos un treinta y tres por ciento del
capital social podran solicitar por escrito, en cualquier tiempo, que el
Administrador Unico o el Consejo de Administracion, segun sea el caso, o los
Comisarios, convoquen a Asamblea de Accionistas para tratar los asuntos
especificados en su solicitud. Cualquier accionista titular de una o mas
acciones tendra el mismo derecho en cualquiera de los casos senalados en el
articulo ciento ochenta y cinco de la Ley General de Sociedades Mercantiles. Si
el Administrador Unico o el Presidente o el Secretario del Consejo de
Administracion, segun sea el caso, o los Comisarios, no hicieren la convocatoria
dentro
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de los quince dias siguientes a la fecha de la solicitud, un Juez de lo Civil o
de Distrito del domicilio de la sociedad hara la convocatoria a peticion de
cualquier accionista interesado, debiendo exhibir sus acciones para tal efecto,
de conformidad con lo previsto por la ley.
ARTICULO VIGESIMO PRIMERO. Las convocatorias para Asambleas se
publicaran en el Diario Oficial de Federacion o en el periodico oficial del
Distrito Federal, con por lo menos quince dias de anticipacion a la fecha fijada
para la Asamblea. Ademas, las convocatorias notificaran por carta a los
accionistas, que se enviaran por correo certificado, con anterioridad a la fecha
publicacion de la convocatoria, a las direcciones aparezcan en el Libro de
Registro de Acciones de sociedad. Tratandose de accionistas domiciliados en el
extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran la Orden del Dia y estaran firmadas por quien las
expida.
ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin
previa publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion.
ARTICULO VIGESIMO TERCERO. Solo los accionistas que aparezcan
inscritos en el Libro de Registro de Acciones de la sociedad como titulares de
una o mas acciones, seran admitidos en Asambleas.
ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados
en Asambleas por la persona o personas que designen mediante carta poder
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firmada ante dos testigos, o por cualquier otra forma de mandato conferido de
acuerdo con la ley.
ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se
transcribiran a un libro especialmente autorizado y deberan ser firmadas por las
personas que hayan fungido como Presidente y Secretario de la Asamblea, asi como
por los Comisarios presentes y por los accionistas o representantes de
accionistas que desearen firmar.
ARTICULO VIGESIMO SEXTO. Las Asambleas seran presididas por el
Administrador Unico o por el Presidente del Consejo de Administracion, segun sea
el caso. Sin embargo, en caso de que quien desempene alguno de los cargos
mencionados estuviere ausente, la Asamblea en cuestion sera presidida por la
persona que sea designada por resolucion de la propia Asamblea. El Secretario
del Consejo de Administracion actuara como Secretario de las Asambleas de
Accionistas; sin embargo, en su ausencia, actuara como tal la persona designada
por resolucion de la Asamblea.
ARTICULO VIGESIMO SEPTIMO. Las Asambleas Ordinarias se celebraran
cuando menos una vez al ano dentro de los cuatro meses siguientes al cierre de
cada ejercicio social. Ademas de los asuntos especificados en la Orden del Dia,
la Asamblea Ordinaria Anual debera discutir, aprobar o modificar el informe del
Consejo de Administracion que incluya los informes y estados financieros a que
se refiere el enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles, tomando en cuenta el dictamen del Comisario o
Comisarios, y adoptar las
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medidas que juzgue oportunas; designar al Administrador Unico a miembros del
Consejo de Administracion, segun sea el caso, y al Comisario o Comisarios, asi
como, determinar las remuneraciones al Administrador Unico o a los miembros del
Consejo de Administracion y a los Comisarios.
ARTICULO VIGESIMO OCTAVO. Para que sean validas las Asambleas
Ordinarias de Accionistas celebradas en virtud de primera o ulterior
convocatoria deberan reunir la presencia de, por lo menos, el cincuenta por
ciento de las acciones representativas del capital social.
ARTICULO VIGESIMO NOVENO. Para que sean validas las Asambleas
Extraordinarias de Accionistas celebradas en virtud de primera convocatoria,
deberan reunir, por lo menos, la presencia del setenta y cinco por ciento de las
acciones representativas del capital social. En caso de segunda o ulterior
convocatoria, la Asamblea se considerara legalmente instalada si estuviere
presente, cuando menos, el cincuenta por ciento de las acciones representativas
del capital social.
ARTICULO TRIGESIMO. Tratandose de Asambleas Ordinarias, las
resoluciones en ellas adoptadas seran validas cuando se emita voto favorable por
la mayoria de las acciones presentes, siempre y cuando hubiere existido quorum
de presencia en los terminos del articulo vigesimo octavo de los estatutos
sociales.
ARTICULO TRIGESIMO PRIMERO. En el caso de Asambleas Extraordinarias,
sus resoluciones seran validas cuando sean adoptadas por el voto
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favorable de las acciones que representen, cuando menos, el cincuenta por ciento
de las acciones que integren el capital social.
INFORMACION FINANCIERA
ARTICULO TRIGESIMO SEGUNDO. Dentro de los cuatro meses siguientes al
cierre de cada ejercicio social, el Administrador Unico o el Consejo de
Administracion, en su caso, formulara los siguientes estados financieros, los
que deberan contener toda la informacion que sea necesaria para reflejar el
estado que guarda la situacion financiera y operativa de la sociedad, en
terminos del enunciado general del articulo ciento setenta y dos de la Ley
General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
ARTICULO TRIGESIMO TERCERO. Los estados financieros, junto con los
documentos justificativos, deberan ser entregados al Comisario o Comisarios con
un
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mes de anticipacion, cuando menos, a la fecha fijada para la Asamblea General
Anual Ordinaria de Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO TRIGESIMO CUARTO. Dentro de los quince dias siguientes a la
fecha en que les hayan sido entregados los estados financieros, los Comisarios
deberan presenter al Administrador Unico o al Consejo de Administracion, segun
sea el caso, un informe respecto de la veracidad, suficiencia y razonabilidad de
la informacion que les haya sido presentada por el Consejo de Administracion o
por el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, disposicion de los accionistas,
para su revision, por lo menos durante los quince dias anteriores a la fecha
senalada para la Asamblea Ordinaria Anual de Accionistas.
Los estados financieros, una vez aprobados, deberan mandarse
publicar y depositar, en la forma y terminos previstos en el articulo ciento
setenta y siete de la Ley General de Sociedades Mercantiles.
ARTICULO TRIGESIMO QUINTO. Las utilidades netas de cada ejercicio
social seran distribuidas de la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir el fondo de reserva legal, hasta que sea igual a, cuando menos, el
veinte por ciento del capital social;
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2) El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO TRIGESIMO SEXTO. Las perdidas, si las hubiere, seran
reportadas primeramente por los fondos de reserva, y si estos fueren
insuficientes, por el capital social pagado, en el entendido de que la
responsabilidad de los accionistas en relacion a las obligaciones de la sociedad
estara limitada unicamente hasta el pago del valor nominal de sus respectivas
acciones.
DISOLUCION Y LIQUIDACION
ARTICULO TRIGESIMO SEPTIMO. La sociedad se disolvera en cualquiera
de los supuestos establecidos en la ley. Una vez disuelta la sociedad se pondra
en liquidacion. La liquidacion se encomienda a uno o mas liquidadores designados
por Asamblea Extraordinaria de Accionistas. Si la Asamblea no hiciere la
designacion correspondiente la hara un Juez de lo Civil o de Distrito del
domicilio de la sociedad a solicitud de cualquier accionista.
ARTICULO TRIGESIMO OCTAVO. En ausencia de instrucciones expresas en
contrario dadas a los liquidadores por la Asamblea, la liquidacion se llevara a
cabo de acuerdo con las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
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4) Preparacion del balance general de liquidacion;
5) Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion al numero de sus acciones.
DISPOSICIONES GENERALES
ARTICULO TRIGESIMO NOVENO. Los socion fundadores, como tales, no se
reservan participacion alguna.
ARTICULO CUADRAGESIMO. En los terminos del articulo treinta y uno
del Reglamento de la Ley para Promover la Inversion Mexicana y Regular la
Inversion y para cumplir con la condicion a que se refiere el permiso otorgado
por la Secretaria de Relaciones Exteriores que ha sido transcrito en este
instrumento, los otorgantes se obligan formalmente a que todo extranjero que, en
el acto de la constitucion o en cualquier tiempo ulterior, adquiera un interes o
participacion social en la sociedad, se considerara por ese simple hecho como
mexicano respecto de uno y otra, asi como respecto de los bienes, derechos,
concesiones, participaciones o intereses de los que llegue a ser titular esta
sociedad, o bien de los derechos y obligaciones que deriven de los contratos en
que sea parte y por lo tanto a no invocar la proteccion de su gobierno, bajo la
pena, en caso de faltar a su convenio, de perder dicho interes o participacion
en beneficio de la Nacion Mexicana.
DISPOSICIONES TRANSITORIAS
PRIMERA. Las acciones en que se divide el capital minimo de la
sociedad, han sido integramente suscritas y pagadas en la siguiente forma:
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ACCIONISTAS ACCIONES CAPITAL
----------- -------- -------
JAFRA COSMETICS, SOCIEDAD ANONIMA 9,996 $ 9,996,000.00
DE CAPITAL VARIABLE, suscribe nueve mil
novecientas noventa y seis acciones con valor
nominal de mil pesos cada una, que paga endinero
efectivo.
PLUMIBOL, SOCIEDAD ANONIMA DE 1 $ 1,000.00
CAPITAL VARIABLE, suscribe una accion con
valor nominal de mil pesos, que paga en dinero
efectivo.
CALZADA MARIANO ESCOBEDO 151-155, 1 $ 1,000.00
SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, suscribe una accion con valor no
minal de mil pesos, que paga en dinero efectivo.
DE CAPITAL VARIABLE, suscribe una accion 1 $ 1,000.00
con valor no minal de mil pesos, que paga en
dinero efectivo.
ORAL-B LABORATORIOS, SOCIEDAD 1 $ 1,000.00
ANONIMA DE CAPITAL VARIABLE, suscribe
una accion con valor nominal de mil pesos, que
paga en dinero efectivo.
TOTAL 10,000 $10,000,000.00
SEGUNDA. Se designan como Administrador Unico y Administrador Unico
Suplente de la Sociedad a los Senores Leticia Navarro Ochoa y Luis Rosas Monroy,
respectivamente.
TERCERA. Se designan como Funcionarios de la Sociedad a las
siguientes personas:
Licenciado Miguel Angel Castaneda Perez Director de Finanzas
Licenciado Eduardo Hurtado Badiola Director de Relaciones Industriales
Licenciado Nemesio Garcia Naranjo Sub-Director de Relaciones
Industriales
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CUARTA. Se designan como Comisario y Comisario Suplente de la
sociedad a los Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriguez
Islas, respectivamente.
QUINTA. Los Administradores, Funcionarios y Comisarios designados
han aceptado sus cargos y tienen caucionado su manejo.
SEXTA. Se otorga en favor de los Senores Leticia Navarro Ochoa y
Luis Rosas Monroy, para que lo ejerciten conjunta o separadamente, poder general
con todas las facultades a que refiere el articulo decimo de los estatutos
sociales.
SEPTIMA. Se otorga en favor del Senor Licenciado Miguel Angel
Castaneda Perez, en su caracter de Director de Finanzas, poder general con las
siguientes facultades:
a) Pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo, fomular
querellas y denuncias penales y otorgar perdon; transigir comprometer en
arbitros, absolver y articular posiciones, resusar jueces, recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la ley, entre los
que se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo;
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b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion;
c) Suscribir titulos de credito en nombre de la sociedad en terminos
del articulo noveno de la Ley General de Titulos y Operaciones de Credito, asi
como para abrir y operar cuentas bancarias, cuentas con instituciones bursatiles
y cualquier otro tipo de cuentas en las que se depositen o inviertan fondos de
la sociedad, en el pais y en el extranjero, en moneda nacional y en moneda
extranjera, incluyendo facultades para girar instrucciones para la disposicion
de fondos asi como para designar a personas facultades tambien para girar tales
instrucciones, y
d) Para otorgar y revocar poderes en terminos de los parrafos a) y
b) que anteceden, con on sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
OCTAVA. Se otorga en favor de los Licenciados Eduardo Hurtado
Badiola y Nemesio Garcia Naranjo, en su caracter de Director de Relaciones
Industriales y Sub-Director de Relaciones Industriales respectivamente, para que
lo ejerciten conjunta o separadamente, poder general con las siguientes
facultades:
a) Pleitos y conbranzas, con todas las facultades generales y las
especiales que requieran clausula especial conforme a la ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quienentos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las
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entidades que integran la Federacion, estando por lo tanto facultados para
desistirse aun del juicio de amparo, formular querellas y denuncias penales y
otorgar perdon; transigir, comprometer en artibros, absolver y articular
posiciones, recusar jueces, recibir pagos y ejecutar todos los demas actos
expresamente autorizados por la ley, entre los que se incluye representar a la
sociedad ante autoridades y tribunales penales, civiles, administrativos y del
trabajo;
b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos circuenta y cautro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion; y
c) Para otorgar y revocar poderes en terminos de los parrafos a) y
b) que anteceden, con o sin facultades de substitucion, y para revocar poderes
otorgados por la sociedad.
NOVENA. Se otorga en favor de los licenciados Juan M. Steta Torres,
Manuel Vera Vallejo, German Muggenburg y Rodriguez Vigil y Luis Alfonso
Cervantes Muniz, para que lo ejerciten conjunta o separadamente, poder general
para pleitos y contranzas y para actos de administracion, sin limitacion alguna,
en los terminos de los dos primeros parrafos del articulo dos mil quinientos
cincuenta y cuatro del Cogido Civil en vigor en el Distrito Federal y sus
correlativos de los Codigos Civiles de los demas Estados de la Republica en
donde se ejercite el mandato.
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PERSONALIDAD
Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL
ANGEL CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO
CERVANTES MUNIZ Y VICTOR MANUEL ROCHA DURAN, acreditan su personalidad en la
siguiente forma:
a) La LICENCIADA LETICIA NAVARRO OCHOA, con la escritura numero
veintinueve mil doscientos veinticuatro, otorgada e esta Ciudad, el once de
octubre de mil novecientos noventa, ante el suscrito Notario, JAFRA COSMETICS,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el treinta y uno de agosto de mil novecientos ochenta y nueve, la
designo Director General y con tal caracter le otorgo poder general para pleitos
y cobranzas y para actos de administracion, sin limitacion alguna, en los
terminos de los dos primeros parrafos del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de
los Codigos Civiles de los demas Estados de la Repdblica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
b) El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, con la escritura
numero veintinueve mil doscientos veintiocho, otorgada en esta Ciudad, el once
de octubre de mil novecientos noventa, ante el suscrito Notario, PLUMIBOL,
SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Accionistas
celebrada el veintiocho de febrero de mil novecientos noventa, lo designo
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Director de Finanzas y con tal caracter le otorgo poder general Para pleitos y
cobranzas y para actos de administracion, sin limitacion alguna, en los terminos
de los dos primeros parrafos del articulo dos mil quinientos cincuenta y cuatro
del Codigo Civil en vigor en el Distrito Federal, y sus correlativos de los
Codigos Civiles de los demas Estados de la Republica en donde se ejercite el
mandato, y facultad expresa para otorgar poderes y revocarlos.
c) El SENOR GUSTAVO MADRINAN MICOLTA, con la escritura numero
veintinueve mil quinientos noventa y tres, otorgada en esta Ciudad, el veintiuno
de diciembre de mil novecientos noventa, ante el suscrito Notario, CALZADA
MARIANO ESCOBEDO 151-155, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo de
la Asamblea de Accionistas celebrada el veintiocho de diciembre de mil
novecientos ochenta y nueve le otorgo poder general para pleitos y cobranzas y
para actos de administracion, sin limitacion alguna, en los terminos de los dos
primeros parrafos del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil en vigor en el Distrito Federal, y sus correlatives de los Codigos Civiles
de los demas Estados de la Republica en donde se ejercite mandato, y facultad
expresa para otorgar poderes y revocarlos.
d) El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, con la escritura
numero ciento diecinueve mil setecientos diez, otorgada en esta Ciudad, el
dieciocho de febrero de mil novecientos ochenta y ocho, ante el Notario numero
seis del Distrito Federal, Licenciado Fausto Rico Alvarez, BRAUN DE MEXICO Y
COMPANIA, DE CAPITAL VARIABLE, por acuerdo de la Asamblea de Socios
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celebrada el cuatro de diciembre de mil novecientos ochenta y siete, le otorgo
poder general para pleitos y cobranzas y para actos de administracion, sin
limitacion alguna, en los terminos de los dos primeros parrafos del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil en vigor en el Distrito
Federal, y facultad expresa para otorgar poderes y revocarlos. Dicha escritura
fue inscrita en el Registro Publico de la Propiedad de esta Capital, en el Folio
Mercantil numero siete mil trescientos trienta y cuatro.
e) El SENOR VICTOR MANUEL ROCHA DURAN, con la escritura numero diez
mil doscientos setenta y tres, otorgada en esta Ciudad, el veinticinco de
septiembre de mil novecientos noventa, ante el Notario mumero ciento setenta y
nueve del Distrito Federal, Licenciado Juan Vicente Matute Ruiz, ORAL-B
LABORATORIOS, SOCIEDAD ANONIMA DE CAPITAL VARIABLE, por acuerdo tomado en sesion
del Consejo de Administracion celebrada el seis de septiembre de mil novecientos
noventa, lo designo Director de Finanzas, y con tal caracter le otorgo poder
general para pleitos y cobranzas y para actos de administracion, sin limitacion
alguna, en los terminos de los dos primeros parrafos del articulo dos mil
quinientos cincuenta y cuatro del Codigo Civil en vigor en el Distrito Federal,
facultad para suscribir titulos de credito en los terminos del articulo noveno
de la Ley General de Titulos y Operaciones de Credito, y facultad expresa para
otorgar poderes y revocarlos.
En dichas escrituras quedo debidamente acredita la constitucion y
capacidad legal de las sociedades mandantes.
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Los SENORES LICENCIADA LETICIA NAVARRO OCHOA, LICENCIADO MIGUEL
ANGEL CASTANEDA PEREZ, GUSTAVO MADRINAN MICOLTA, LICENCIADO LUIS ALFONSO
CERVANTES MUNIZ Y VICTOR MANUEL ROCHA DURAN, declaran bajo protesta de decir
verdad que los poderes que ejercitan no les han sido revocados ni modificados en
forma alguna y que sus respectivas representadas tienen capacidad legal.
GENERALES
Los comparecientes declaran por las suyas ser:
La LICENCIADA LETICIA NAVARRO OCHOA, originaria de Colima, Colima,
que nacio el diez de noviembre de mil novecientos cincuenta y tres, mexicana por
nacimiento, hija de padres mexicanos, casada, licenciada en administracion de
empresas, con domicilio en Alberto Zamora numero ochenta y cuatro, Coyoacan, en
esta Ciudad.
El LICENCIADO MIGUEL ANGEL CASTANEDA PEREZ, originario de esta
Ciudad, que nacio el veintisiete de septiembre de mil novecientos cuarenta,
mexicano por nacimiento, hijo de padres mexicanos, casado, ejecutivo, con
domicilio en Plazuela de Monte Alegre numero ciento nueve, colonia Lomas de la
Herradura, Estado de Mexico.
El SENOR GUSTAVO MADRINAN MICOLTA, originario de Cali, Colombia, que
nacio el dieciocho de abril de mil novecientos cuarenta y uno, colombiano,
casado, director de manufacture, con domicilio en Paseo de la Reforma
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numero dos mil doscientos treinta y tres, departamento doscientos dos, colonia
Lomas de Chapultepec, en esta Ciudad, y acredita su legal estancia en el Pais
con la libreta FM DOS numero doscientos cincuenta y seis mil cuatrocientos
ochenta y cinco, expedida el cuatro de junio de mil novecientos noventa, en la
que tiene reconocido el caracter de inmigrante.
El LICENCIADO LUIS ALFONSO CERVANTES MUNIZ, originario de esta
Ciudad, que nacio el dieciseis de noviembre de mil novecientos cincuenta y
cinco, mexicano por nacimiento, hijo de padres mexicanos, casado, abogado, con
domicilio en Campos Eliseos numero trescientos cuarenta y cinco, tercer piso,
colonia Chapultepec Polanco, an esta Ciudad.
El SENOR VICTOR MANUEL ROCHA DURAN, originario de esta Ciudad, que
nacio el dos de septiembre de mil novecientos cuarenta y cinco, mexicano por
nacimiento, hijo de mexicanos, casado, director de finanzas, con domicilio en La
Joya numero treinta y cuatro, casa veintiuno, Tepepan, Tlalpan, en esta Ciudad.
YO, EL NOTARIO, DOY FE Y CERTIFICO:
a) Que conozco personalmente a los comparecientes quienes a mi
juicio tienen capacidad legal por no constarme nada en contrario.
b) Que les fue leida integramente la presente escritura.
c) Que a los comparecientes les explique el valor y las
consecuencias legales del contenido de esta escritura y les informe de las penas
en que incurren quienes
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declaran con falsedad ante Notario, con excepcion del LICENCIADO LUIS ALFONSO
CERVANTES MUNIZ, por ser perito en derecho.
d) Que lo relacionado e inserto concuerda con sus originales a que
me remito y tuve a la vista.
e) Que los comparencientes manifestaron al suscrito Notario su
conformidad con esta escritura, para constancia de lo cual la firman el dia de
su fecha.
Firma de la Licenciada Leticia Navarro Ochoa.
Firma del Senor Miguel Angel Castaneda Perez.
Firma del Senor Gustavo Madrinan Micolta.
Firma del Licenciado Luis Alfonso Cervantes Muniz.
Firma del Senor Victor Manuel Rocha Duran.
Ante mi. R. Numez. firmado.
Un Sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F.
Estados Unidos Mexicanos.
Autorizo definitivamente en Mexico a trece de febrero de mil
provecientos noventa y uno. R. Nunez. firmado.
Un sello: Lic. Roberto Nunez y Bandera Notario No. 1 del D.F.
Estados Unidos Mexicanos.
NOTAS MARGINALES
NOTA PRIMERA MEXICO A ONCE DE ENERO DE MIL NOVECIENTOS NOVENTA Y UNO
CON ESTA FECHA SE DIO AVISO A LA
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SECRETARIA DE RELACIONCES EXTERIORES EN LOS TERMINOS DE LOS ARTICULOS 31 PARRAFO
3 Y 32 FRACCION II, PARRAFO 4 DEL REGLAMENTO DE LA LEY PARA PROMOVER LA
INVERSION MEXICANA Y REGULAR LA INVERSION EXTRANJERA, QUE SE RECIBIO CON EL
NUMERO 3117 COPIA DEL CUAL SE AGREGA AL APENDICE DE ESTE INSTRUMENTO CON LA
LETRA B. DOY FE. NUNEZ. FIRMADO.
NOTA SEGUNDA MEXICO A TRECE DE FEBRERO DE MIL NOVECIENTOS NOVENTA Y
UNO CON ESTA FECHA SE AGREGA AL APENDICE DE ESTA ESCRITURA EL AVISO DE
INSCRIPCION EN EL REGISTRO FEDERAL DE CONTRIBUYENTES RELATIVO A ESTA SOCIEDAD
CON LA CLAVE RED-910102GG3. DOY FE. NUNEZ. FIRMADO.
ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL CODIGO CIVIL.
En todos los poderes generales para pleitos y cobranzas bastara que
se diga que se ortorga con todas las facultades generales y las especiales que
requieran clausula especial conforme a la Ley para que se entiendan conferidos
sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar
que se dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que
se den con ese caracter para que el apoderado tenga toda clase de facultades de
dueno, tanto en los relativo a los bienes, como para hacer toda clase de
qestiones, a fin de defenderlos.
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Cuando se quis_____ limitar, en los tres casos antes mencionados,
las facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los notarios insertaran este articulo en los tertimonios de los
poderes que otorguen.
ES PRIMER TESTIMONIO QUE SE EXPIDE PARA REDAY, SOCIEDAD ANONIMA DE
CAPITAL VARIABLE A FIN DE QUE LE SIRVA PARA ACREDITAR SU CONSTITUCCION.
VA EN DOCE FOJAS CORREGIDAS.
MEXICO, DISTRITO FEDERAL A DIECINUEVE DE FEBRERO DE MIL NOVECIENTOS
NOVENTA Y UNO. DOY FE.
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LIBRO NUMERO NOVENTA Y SIETE
ESCRITURA NUMERO (3,449) TRES MIL CUATROCIENTOS CUARENTA Y NUEVE.
EN MEXICO, DISTRITO FEDERAL, a los dos dias del mes de mayo de mil
novecientos noventa y cinco, Yo, el Licenciado CARLOS ANTONIO REA FIELD, titular
de la Notaria ciento ochenta y siete del Distrito Federal, hago constar que ante
mi comparecen: los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y ALEJANDRO
SAINZ ORANTES, ambos en su caracter de Delegados Especiales de "REDAY", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, y exponen que formalizan:
LA PROTOCOLOZACION PARCIAL DE UN ACTA DE ASAMBLEA GENERAL ORDINARIA
ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de la expresada Sociedad;
LA PROTOCOLIZACION DE LOS NUEVOS ESTATUTOS SOCIALES de la referida
Sociedad; y
EL OTORGAMIENTO DE PODERES GENERALES derivados de dicha acta que se
protocoliza;
Actos que se contienen en los antecedentes y clausulas siguientes:
A N T E C E D E N T E S
I. ESCRITURA CONSTITUTIVA. Por escritura numero veintinueve mil
seiscientos siete, de fecha dos de enero de mil novecientos noventa y uno,
otorgada ante
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el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del Distrito
Federal, inscrito su primer testimonio en el Registro Publico de la Propiedad y
de Comercio de esta ciudad, el veinticuatro de octubre de mil novecientos
noventa y uno, en el folio mercantil numero ciento cincuenta mil trescientos
trece, instrumento por el que previo permiso concedido por la Secretaria de
Relaciones Exteriores marcado con el numero cero cuarenta y siete mil
setecientos cuarenta y tres, en el expediente numero cero nueve diagonal
cincuenta y tres mil setecientos cincuenta y dos diagonal noventa, se constituyo
"REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, con domicilio en el Distrito
Federal, una duracion de NOVENTA Y NUEVE AMOS, con clausula de admision de
extranjeros. De la escritura que se viene relacionando, copio en lo conducente
lo siguiente:
". . . ESTATUTOS . . . OBJETO . . . ARTICULO TERCERO. La sociedad
tendra por objeto: 1) Adquirir, establecer, disponer de, dar o tomar en
arrendamiento o subarrendamiento, en comodato o en subcomodato, administrar,
operar o poseer en cualquier forma permitida por la ley fabricas, plantas
industriales, talleres, laboratorios, almacenes o bodegas, oficinas, tiendas y
otros establecimientos y bienes inmuebles con el fin de otorgar gratuita u
onerosamente su uso y goce a terceros en virtud de contratos de arrendamiento,
subarrendamiento, comodato o subcomodato, o cualquier otro titulo juridico: 2)
Construir, edificar, reparar, reconstruir, demoler, planear y disenar toda clase
de casas habitacion, edificios, estructuras, fabricas, plantas industriales,
talleres, laboratorios, almacenes o bodegas, oficinas, tiendas y otros
establecimientos y
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bienes inmuebles; 3) Adquirir, enajenar, importar, exportar, gravar, dar o tomar
en arrendamiento y negociar en cualqier forma con toda clase de bienes muebles;
4) Prestar y recibir servicios de construccion, diseno y consultoria, asi como
servicios administrativos y de supervision; 5) Prestar toda clase de servicios
tecnicos, administrativos o de supervision a negociaciones comerciales o
industriales en Mexico o en el extranjero y recibir tales servicios; 6)
Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar y adquirir
marcas industriales y de servicios, nombres comerciales, derechos de autor,
patentes, invenciones y procesos, asi como disponer de ellos; 7) Actuar como
contratista, subcontratista, agente o representante y designar subcontratistas,
agentes o representantes; 8) Adquirir acciones, participaciones, partes de
interes y obligaciones de toda clase de empresas o sociedades, sean civiles o
mercantiles, y formar parte de ellas; 9) Representar o ser agente o comisionista
de negociaciones comerciales o industriales nacionales o extranjeras; 10) Dar o
tomar dinero en prestamo con o sin garantia, emitir bonos, valores hipotecarios,
obligaciones y cualquiera otros titulos de credito con la intervencion de las
instituciones senaladas por la ley, y otorgar fianzas o garantias de cualquier
clase respecto de obligaciones contraldas o de titulos emitidos o aceptados por
la propia sociedad o por terceros: 11) Emitir, suscribir, aceptar y nogociar en
cualquier forma con titulos de credito; y 12) Ejecutar toda clase de actos y
celebrar toda clase de contratos permitidos por la Ley CAPITAL SOCIAL Y ACCIONES
- - ARTICULO QUINTO - El capital social es variable. El capital fijo sin derecho a
retiro es de DIEZ MILLONES DE PESOS, Moneda Nacional, representado por Diez Mil
PESOS, Moneda Nacional cada una . . .
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ADMINISTRACION DE LA SOCIEDAD - ARTICULO OCTAVO. La Administracion de la
sociedad estara confiada a un Administrador Unico o a un Consejo de
Administracion formado por el numero de miembros que determine la Asamblea de
Accionistas. Si la Asamblea lo considera pertinente, podra designar un
Administrador Unico Suplente o a Consejeros Suplentes, segun sea el caso. Los
Consejeros y sus Suplentes podran ser o no accionistas; desempenaran sus cargos
hasta las personas designadas para substituirlos tomen posesion de sus puestos;
podran ser reelectos y recibiran las remuneraciones que determine la Asamblea de
Accionistas. ARTICULO DECIMO. El Consejo de Administracion o el Administrador
Unico, en su caso, sera el representante legal de la sociedad y tendra las
siguientes facultades y obligaciones: 1. Ejercitar el poder para pleitos y
cobranzas, con todas las facultades generales y las especiales que requieran de
clausula especial de acuerdo con la ley, sin limitacion alguna, de conformidad
con lo dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil para el Distrito Federal y articulos correlativos de
los Codigos Civiles de las entidades federativas de los Estados Unidos
Mexicanos, estando por lo tanto facultado para desistirse de procedimientos, aun
del juicio de amparo, formular querellas y denuncias penales y desistirse de
allas; coadyuvar con el Ministerio Publico y otorgar el perdon; transigir;
someterse a arbitraje; formular y absolver posiciones; recusar jueces; recibir
pagos y ejecutar todos los demas actos expresamente autorizados por la ley,
entre los que se incluye representar a la sociedad ante autoridades y tribunales
penales, civiles, administrativos y del trabajo; 2. Administrar bienes de
acuerdo
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con lo dispuesto por el segundo parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los Estados
Unidos Mexicanos; 3. Ejecutar actos de dominio de acuerdo con lo previsto en el
tercer parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos de los Codigos Civiles
de las entidades federativas de los Estados Unidos Mexicanos; 4. Suscribir
titulos de credito de conformidad con el articulo noveno de la Ley General de
Titulos y Operaciones de Credito; 5. Abrir, operar y cerar cuentas bancarias a
nombre de la sociedad y designar a las personas que puedan girar contra las
mismas; 6. Nombrar y remover al Director General y demas directores, gerentes,
funcionarios y empleados de la sociedad y determinar sus condiciones de trabajo,
remuneraciones y facultades; 7. Formular reglamentos interiores de trabajo; 8.
Convocar a Asambleas de Accionistas y ejecutar sus resoluciones; 9. Llevar a
cabo todos los actos autorizados por estos estatutos de la sociedad o que sean
consecuencia de los mismos; 10. Conferir poderes generales y especiales en los
terminos de los puntos uno, dos, tres, cuartro y cinco anteriores, con o sin
facultades de substitucion, asi como revocar los poderes que hubieren sido
otorgdos . . . ARTICULO DECIMO CUARTO. Para garantizar el desempeno de sus
cargos el Administrador Unico o, en su caso, los Consejeros y sus respectivos
Suplentes, al tomar posesion, depositaran con la sociedad la cantidad de cien
mil pesos, moneda nacional, cada uno, o, a su eleccion, exhibiran poliza de
fianza otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran
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retirar las garantias otorgadas hasta que su gestion haya sido aprobada por
Asamblea de Accionistas. Los directores y demas funcionarios de la sociedad
otorgaran las garantias que determine la Asamblea de Accionistas o el Consejo de
Administracion que los designe. VIGILANCIA DE LA SOCIEDAD. ARTICULO DECIMO
QUINTO. La vigilancia de la sociedad estara ancomendada a uno o dos Comisarios,
segun lo determine la Asamblea de Accionistas. Si la Asamblea lo considerare
pertinente designara uno o dos Comisarios Suplentes. ARTICULO DECIMO SEXTO. Los
comisarios no necesitan ser accionistas de la sociedad; podran ser reelectos y
desempenaran su cargo hasta que las personas designadas para suplirlos tomen
posesion de los mismos. ARTICULO DECIMO SEPTIMO. Los comisarios tendran las
facultades y las obligaciones estableciadas en el articulo ciento sesenta y seis
de la Ley General de Sociedades Mercantiles. ARTICULO DECIMO OCTAVO. Los
Comisarios otogaran las garantias senaladas en el articulo decimo cuarto de
estos estatutos para los Consejeros y solo podran retirarlas cuando su gestion
haya sido aprobada por Asamblea de Accionistas. ASAMBLEAS DE ACCIONISTAS.
ARTICULO DECIMO NOVENO. Las Asambleas de Accionistas se celebraran en el
domicilio de la sociedad. Seran Extraordinarias las Asambleas convocadas para
tratar cualquiera de los asuntos incluidos en el Articulo ciento ochenta y dos
de la Ley General de Sociedades Mercantiles. Todas las demas Asambleas seran
Ordinarias. ARTICULO VIGESIMO. Las convocatorias para Asambleas de Accionistas
deberan ser hechas por el Administrador Unico o por el Presidente o el
Secretario del Consejo de Administracion, sea el caso o, en la medida en
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que lo permita la Ley, por el Comisario o Comisarios . . . ARTICULO VIGESIMO
PRIMERO. Las convocatorias para Asambleas se publicaran en el Diario Official de
la Federacion o en el periodicio oficial del Distrito Federal, con por lo menos
quince dias de anticipacion a la fecha fijada para la Asamblea. Ademas, las
convocatorias se notificaran por carta a los accionistas, que se enviaran por
correo certificado, con anterioridad a la fecha de publicacion de la
convocatoria, a las direcciones que aparezcan en el Libro de Registro de
Acciones de la sociedad. Tratandose de accionistas domiciliados en el
extranjero, dichas cartas se enviaran por correo aereo certificado. Las
convocatorias contendran la Orden del Dia y estaran firmadas por quien las
expida. ARTICULO VIGESIMO SEGUNDO. Las Asambleas podran celebrarse sin previa
publicacion de convocatoria si el capital social esta representado en su
totalidad y participa al momento de la votacion. ARTICULO VIGESIMO TERCERO. Solo
los accionistas que aparezcan inscritos en el Libro de Registro de Acciones de
la sociedad como titulares de una a mas acciones, seran admitidos a las
Asambleas. ARTICULO VIGESIMO CUARTO. Los accionistas podran ser representados en
las Asambleas por la persona o personas que designen mediante carta poder
firmada ante dos testigos, o por cualquier otra forma de mandato conferido de
acuerdo con la Ley. ARTICULO VIGESIMO QUINTO. Las actas de las Asambleas se
transcribiran a un libro especialmente autorizado y deberan ser firmadas por las
personas que hayan fungido como Presidente y Secretario de la Asamblea, asi como
por los Comisarios presentes y por los accionistas o representantes de
accionistas que desearen firmar. ARTICULO VIGESIMO SEXTO. Las Asambleas
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seran presididas por el Administrador Unico o por el Presidente del Consejo de
Administracion, segun sea el caso. Sin embargo, en caso de que quien desempene
alguno de los cargos mencionados estuviere ausente. La Asamblea en cuestion sera
presidida por la persona que sea designada por resolucion de la propia Asamblea.
El Secretario del Consejo de Administracion actuara como Secretario de las
Asambleas de Accionistas; sin embargo, en su ausencia, actuara como tal la
persona designada por resolucion de la Asamblea. ARTICULO VIGESIMO SEPTIMO. Las
Asambleas Ordinarias se celebraran cuando menos una vez al ano dentro de los
cuarto meses siguientes al cierre de cada ejercicio social. Ademas de los
asuntos especificados en la Orden del Dia, la Asamblea Ordinaria Anual debera
. . . designar al Administrador Unico a los miembros del Consejo de
Administracion, segun sea el caso, y al Comisario o Comisarios . . . ARTICULO
VIGESIMO OCTAVO. Para que sean validas las Asambleas Ordinarias de Accionistas
celebradas en virtud de primera o ulterior convocatoria deberan reunir la
presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social. ARTICULO VIGESIMO NOVENO. Para que sean
validas, las Asambleas Extraordinarias de Accionistas celebradas en virtud de
primera convocatoria, deberan reunir, por lo menos, la presencia del setenta y
cinco por ciento de las acciones representativas del capital social. En caso de
segunda o ulterior convocatoria, la Asamblea se considerara legalmente instalada
si estuviere presente, cuando menos, el cincuenta por ciento de las acciones
representativas del capital social. ARTICULO TRIGESIMO. Tratandose de Asambleas
Ordinarias, las resoluciones en ellas adoptadas
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seran validas cuando se emita voto favorable por la mayoria de las acciones
presentes, siempre y cuando hubiere existido quorum de presencia en los terminos
del articulo vigesimo octavo de los estatutos sociales. ARTICULO TRIGESIMO
PRIMERO. En el caso de Asambleas Extraordinarias, sus resoluciones seran validas
cuando sean adoptadas por el voto favorable de las acciones que representen,
cuando menos, el cincuenta por ciento de las acciones que itegren el capital
social . . . DISPOSICIONES TRANSITORIAS . . . SEGUNDA. Se designan como
Administrador Unico y Administrador Unico Suplente de la Sociedad, a los Senores
Leticia Navarro Ochoa y Luis Rosas Monroy, respectivamente . . . CUARTA. Se
designan como Comisario y como Comisario Suplente de la sociedad a los
Contadores Publicos Fernando Holguin Maillard y Eduardo Rodriquez Islas,
respectivamente. QUINTA. Los Administradores, Funcionarios y Comisarios
designados han aceptado sus cargos y tienen caucionado su manejo . . ."
II. AUMENTOS DEL CAPITAL SOCIAL EN SU PARTE VARIABLE.
A). Por escritura numero treinta y un mil seiscientos setenta y
ocho, de fecha veinte de diciembre de mil novecientos noventa y uno, otorgada
ante el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del
Distrito Federal, se protocolizo un acta de Asamblea General Extraordinaria
celebrada por los accionistas de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
el dos de julio de mil novecientos noventa y uno, por la que se formalizaron
entre otros acuerdos, el de aumentar su capital social en su parte varible a la
cantidad de CINCO MIL QUINIENTOS CUARENTA Y
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SIETE MILLONES CIENTO CINCUENTA Y CUATRO MIL PESOS. Moneda Nacional
(equivalentes a CINCO MILLONES QUINIENTOS CUARENTA Y SIETE MIL CIENTO CINCUENTA
Y CUATRO NUEVOS PESOS, Moneda Nacional).
B). Por escritura numero treinta y un mil seiscientos setenta y
nueve, de fecha veinte de diciembre de mil novecientos noventa y uno, otorgada
ante el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del
Distrito Federal, se protocolizo un acta de Asamblea General Extraordinaria
celebrada por los accionistas de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
el doce de agosto de mil novecientos noventa y uno, por la que se formalizaron
entre otros acuerdos, el de aumentar su capital social en su parte variable en
la cantidad de CUATRO MIL DOSCIENTOS CINCO MILLONES DE PESOS, Moneda Nacional
(equivalentes a CUATRO MILLONES DOSCIENTOS CINCO MIL NUEVOS PESOS, Moneda
Nacional), quendado con un capital social en su parte variable por la cantidad
de NUEVE MIL SETECIENTOS CINCUENTA Y DOS MILLONES CIENTO CINCUENTA Y CUATRO MIL
PESOS, Moneda Nacional (equivalentes a NUEVE MILLONES SETECIENTOS CINCUENTA Y
DOS MIL CIENTO CINCUENTA A CUATRO NUEVOS PESOS, Moneda macional).
C). Por escritura numero treinta y un mil seiscientos noventa y
cinco, de fecha catorce de enero de mil novecientos noventa y dos, otorgada ante
el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del Distrito
Federal, se protocolizo un acta de Asamblea General Extraordinaria celebrada por
los accionistas de "REDAY",
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SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el dieciseis de agosto de mil novecientos
noventa y uno, por la que se formalizaron entre otros acuerdos, el de aumentar
su capital social en su parte variable en la cantidad de CUATROCIENTOS MILLONES
DE PESOS, Moneda Nacional (equivalentes a CUATROCIENTOS MIL NUEVOS PESOS, Moneda
nacional), quedando con un capital social en su parte variable por la cantidad
de DIEZ MIL CIENTO CINCUENTA Y DOS MILLONES CIENTO CINCUENTA Y CUATRO MIL PESOS,
Moneda Nacional (equivalentes a DIEZ MILLONES CIENTO CINCUENTA Y Y DOS MIL
CIENTO CINCUENTA Y CUATRO NUEVOS PESOS, Moneda Nacional).
D). Por escritura numero treinta y un mil seiscientos noventa y
seis, de fecha catorce de enero de mil novecientos noventa y dos, otorgada ante
el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del Distrito
Federal, se protocolizo parcialmente un acta de Asemblea General Extraordinaria
celebrada por los accionistas de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE,
el viente de septiembre de mil novecientos noventa y uno, por la que se
formalizaron entre otros acuerdos, el de aumentar su capital social en su parte
variable en la cantidad de QUINCE MIL MILLONES DE PESOS, Moneda Nacional
(equivalentes a QUINCE MILLONES DE NUEVOS PESOS, Moneda Nacional), quedando con
un capital social en su parte variable por la cantidad de VEINTICINCO MIL CIENTO
CINCUENTA Y DOS MILLONES CIENTO CINCUENTA Y CUATRO MIL PESOS, Moneda Nacional
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(equivalentes a VEINTICINCO MILLONES CIENTO CINCUENTA Y DOS MIL CIENTO CINCUENTA
Y CUATRO NUEVOS PESOS, Moneda Nacional).
E). En virtud de dichos aumentos de capital, "REDAY", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, queda con un capital social de VEINTICINCO MIL
CIENTO SESENTA Y DOS MILLONES CIENTO CINCUENTA Y CUATRO MIL PESOS, Moneda
Nacional (equivalentes a VEINTICINCO MILLONES CIENTO SESENTA Y DOS MIL CIENTO
CINCUENTA Y CUATRO NUEVOS PESOS, Moneda Nacional), representado por veinticinco
millones ciento sesenta y dos mil ciento cincuenta y cuatro acciones, con valor
nominal cada una de UN MIL PESOS, Moneda Nacional (equivalentes a UN NUEVO PESO,
Moneda Nacional). Del referido capital social, corresponde a su PARTE MINIMA
FIJA la cantidad de DIEZ MILLONES DE PESOS, Moneda Nacional (equivalentes a DIEZ
MIL NUEVOS PESOS, Moneda Nacional), y a su PARTE VARIABLE, la suma de
VEINTICINCO MIL CIENTO CINCUENTA Y DOS MILLONES CIENTO CINCUENTA Y CUATRO MIL
PESOS, Moneda Nacional (equivalentes a VEINTICINCO MILLONES CIENTO CINCUENTA Y
DOS MIL CIENTO CINCUENTA Y CUATRO NUEVOS PESOS, Moneda nacional).
III. NOMBRAMIENTO DE FUNCIONARIOS.
A). Por escritura numero treinta y un mil seiscientos ochenta y
siete, de fecha trece de enero de mil novecientos noventa y dos, otorgada ante
el Licenciado Roberto Nunez y Bandera, titular de la Notaria uno del Distrito
Federal, inscrito su primer testimonio en el Registro Publico de la Propiedad y
de Comercio de esta cuidad, en el
44
<PAGE>
folio mercantil ciento cincuenta mil trescientos trece, se protocolizo
parcialmente un acta de Asamblea General Ordinaria, celebrada por los
accionistas de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, el veinte de
septiembre de mil novecientos noventa y uno, por la que se formalizaron entre
otros acuerdos, el de designar como Administrador Unico Suplente de la expresada
Sociedad, al senor LUIS ALFONSO CERVANTES NUNIZ. De la escritura que se viene
relacionando, copio en lo conducente lo siguiente:
". . . DECLARACIONES . . . II. El compareciente me exhibe el Libro
de Actas de la Sociedad, en el cual a fojas de la veintiocho a la treinta y
siete, obra un acta que en su parte conducente dice: "En el Distrito Federal,
Mexico, a las 12:00 del 20 de septiembre de 1991, se reunieron en el domicilio
social de REDAY, S.A. de C.V. . . . para celebrar la ASAMBLEA GENERAL
EXTRAORDINARIA Y ORDINARIA DE ACCIONISTAS a la que fueron previa y oportunamente
convocados . . . La Presidente designo escritadores a . . . quienes, despues de
aceptar sus cargos, revisaron los instrumentos conteniendo los mandatos de los
representantes de los accionistas y el libro de Registro de Acciones de la
sociedad y certificaron, en union del Comisario, que se encontraba representada
en la Asamblea la totalidad de las acciones de la sociedad actualmente en
circulacion, distribuidas en la siguiente forma: ACCIONISTAS . . . TOTAL.
ACCIONES SERIE "A" . . . 9,997. ACCIONES SERIE "B" . . . 3. ACCIONES SERIE "A-1"
. . . 10,152,154 . . . VOTOS . . . 10,162,154. En virtud de encontrarse
debidamente representad la totalidad de las acciones emitidas por la sociedad
45
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actualmente en circulacion, la Presidente declaro la Asamblea legalmente
instalada, no obstante no haberse publicada la convocatoria respectiva, con
fundamento en el articulo 188 de la Ley General de Sociedades Mercantiles y en
el articulo vigesimo segundo de los estatutos sociales. La Asamblea, por
unanimidad de votos, aprobo la declaratoria anterior y procedio a desahogar los
puntos contenidos en el siguiente. ORDEN DEL DIA . . . II. Designacion de la
persona que habra de fungir como Administrador Unico Suplente de la sociedad
. . . PUNTO DOS. Despues de comentar las anteriores propuestas, la Asamblea, por
unanimidad de votos, adopto las siguientes. RESOLUCIONES. "1. Se designa, con
efectos a partir de la fecha de esta Asamblea al senor Luis Alfonso Cervantes
Nuniz Administrador Unico Suplente de REDAY, S.A. DE C.V.". "2. Para el
desempeno de sus funciones como Administrador Unico Suplente de REDAY, S.A. DE
C.V., el senor Luis Alfonso Cervantes Muniz tendra la representacion de la
sociedad y las siguientes facultades y obligaciones: 1. Ejercitar el poder de la
sociedad para pleitos y cobranzas, con todas las facultades generales y las
especiales que requieran de clausula especial de acuerdo con la ley, sin
limitacion alguna, de conformidad con lo dispuesto por el primer parrafo del
articulo 2554 del Codogo Civil para el Distrito Federal y articulos correlativos
de los Codigos Civiles de las entidades federativas de los Estdos Unidos
Mexicanos, estando por lo tanto facultado para desistirse de procedimientos, aun
del juicio de amparo; formular querellas y denuncias penales y desistirse de
ellas; coadyuvar con el Ministerio Publico y otorgar el perdon, cuando proceda;
transigir; recusar jueces; recibir pagos y ejecutar todos los demas actos
expresamente autorizados por la ley, entre los que
46
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se incluye representar a la sociedad ante autoridades y tribunales penales,
civiles, administrativos y del trabajo; 2. Administrar bienes de acuerdo con lo
dispuesto por el segundo parrafo del articulo 2554 del Codigo Civil para el
Distrito Federal y articulos correlativos en los Codigos Civiles de las
entidades federativas de los Estados Unidos Mexicanos; 3. Ejecutar actos de
dominio de acuerdo con lo previsto en el tercer parrafo del articulo 2554 del
Codigo Civil para el Distrito Federal y articulos correlativos de los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos; 4.
Suscribir titulos de credito de conformidad con el articulo noveno de la Ley
General de Titulos y Operaciones de Credito; 5. Abrir, operar y cerrar cuentas
bancarias a nombre de la sociedad y designar a las personas que puedan girar
contra las mismas; 6. Nombrar y remover al Director General y demas directores,
gerentes, funcionarios y empleados de la sociedad y determinar sus condiciones
de trabajo, remuneraciones y facultades; 7. Formular reglamentos interiores de
trabajo; 8. Convocar a Asambleas de Accionistas y ejecutar sus resoluciones; 9.
Llevar a cabo todos los actos autorizados por los estatutos de la sociedad a que
sean consecuencia de los mismos; 10. Conferir poderes generales y especiales en
los terminos de los parrafos 1, 2, 3, 4, y 5 anteriores, con o sin facultades de
substitucion, asi como revocar los poderes que hubieren sido otorgados por la
sociedad". Estando presente el senor Luis Alfonso Cervantes Muniz, manifesto a
la Asamblea la aceptacion de su encargo y protesto su fiel y legal desempeno,
exhibiendo y entregando en el acto la cantidad de $100,000.00 M.N. (cien mil
pesos 00/100, moneda nacional) en dinero en efectivo como caucion de su manejo,
dando asi cumplimiento a lo dispuesto en
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el articulo decimo cuarto de los estatutos de la sociedad . . . . No habiendo
otro asunto que tratar se suspendio la Asamblea para la redaccion de la presente
acta, misma que fue leida, aprobada y firmada por todos los presentes. Se hace
constar que al momento de adoptarse todas y cada una de las resoluciones
contenidas en esta acta estuvo representada y participo la totalidad del capital
de la sociedad . . . . Se levanto lo Asamblea a las 13:00 del 20 de septiembre
de 1991 . . .".
B). Por escritura numero cincuenta y tres mil ciento setenta y seis,
de fecha veintitres de junio de mil novencientos noventa y cuarto, otorgada ante
el Licenciado Moises Farca Charabati, titular de la Notaria noventa y uno del
Distrito Federal, inscrito su primer testimonio en el Registro Publico de la
Propiedad y de Comercio de esta cuidad, el siete de septiembre de mil
novecientos noventa y cuatro, en el folio mercantil ciento cincuenta mil
trescientos trece, se protocolizo parcialmente un acta de Asamblea General
Ordinaria Anual, celebrada por los accionistas de "REDAY", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE, el veinticuatro de agosto de mil novecientos noventa y tres,
por la que se formalizaron entre otros acuerdos, el de ratificar en los cargos
que a continuacion se indican, a las siguientes personas:
ADMINISTRADOR UNICO: a la senora LETICIA NAVARRO OCHOA.
ADMINISTRADOR UNICO SUPLENTE: al senor LUIS ALFONSO CERVANTES MUNIZ.
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COMISARIO PROPIETARIO: al senor FERNANDO HOLGUIN MAILLARD.
COMISARIO SUPLENTE: al senor EDUARDO RODRIGUEZ ISLAS.
IV. ACTA QUE SE PROTOCOLIZA PARCIALMENTE. Los comparecientes me
exhiben el libro de actas de Asambleas de Accionistas de "REDAY", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, en el que de fojas sesenta y uno a setenta y nueve,
inclusive, aparece asentada un acta de Asamblea General Ordinaria Anual y
Extraordinaria de la expresada Sociedad, celebrada con fecha primero de agosto
de mil novecientos noventa y cuatro, que a continuacion copio en lo conducente:
"En el Distrito Federal, Mexico, a las 14:00 horas del 10. de agosto
de 1994, se reunieron en el domicilio social de REDAY, S.A. DE C.V., los senores
Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de C.V. y de
Plumibol, S.A. de C.V., Alejandro Nila Rosales, en representacion de Calzada
Mariano Escobedo 151-155, S.A. de C.V., de Braun de Mexico y Compania, de C.V. y
de Oral-B Laboratorios, S.A. de C.V., para celebrar ASAMBLEA GENERAL ORDINARIA
ANUAL Y EXTRAORDINARIA DE ACCIONISTAS de REDAY, S.A. DE C.V., a la que fueron
previa y oportunamente convocados. Estuvieron tambien presentes los senores
Fernando Holguin Maillard, Comisario de la sociedad, Luis Alfonso Cervantes
Muniz, Julio Pedro Cepeda Rebollo y Sergio Rene Aparicio Gonzalez, quienes
fueron invitados al evento. Por designacion unanime de los presentes fungio como
Presidente de la Asamblea el senor Alejandro Sainz Orantes. Asimismo se designo
como Secretario al
49
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senor Luis Alfonso Cervantes Muniz. El Presidente designo escritador al senor
Alejandro Nila Rosales quien, despues de aceptar su cargo, reviso los
instrumentos conteniendo los mandatos de los representantes de los accionistas y
el Libro de Registro de Acciones de la sociedad y certifico, en union del
Comisario, que se encontraba representada en la Asamblea la totalidad de las
acciones de la sociedad actualmente en circulacion, distribudas en la siguiente
forma:
<TABLE>
<CAPTION>
ACCIONES SERIE
ACCIONISTA "A" "B" "A-1" VOTOS
- ------------------------ ------- ------- ------- -------
<S> <C> <C> <C> <C>
Grupo Jafra, S.A. de C.V
representada por el senor
Alejandro Sainz Orantes 9,996 -- 25,152,154 25,162,150
Plumibol, S.A. de C.V.,
- --representada por el
senor Alejandro Sainz
Orantes 1 -- -- 1
Calzada Mariano
Escobedo 151-155, S.A
de C.V., -- representada
por el senor Alejandro
Nila Rosales -- 1 -- 1
Braun de Mexico y
Compania, de C.V.,
representada por el senor
Alejandro Nila Rosales -- 1 -- 1
Oral-B Laboratorios, S.A
de C.V., representada por
el senor Alejandro Nila
Rosales 1 -- 1
TOTAL 9,997 3 25,152,154 25,162,154
</TABLE>
50
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En virtud de encontrarse debidamente representada en la Asamblea la
totalidad de las acciones emitidas por la sociedad actualmente en circulacion,
el Presidente declaro la misma legalmente instalda, no obstante no haberse
publicado la convocatoria respectiva, con fundmento en el articulo 188 de la Ley
General de Sociedades Mercantiles - La Asamblea, por unanimidad de votos, aprobo
la declaratoria anterior y procedio a desahogar los asuntos contenidos en el
siguiente. ORDEN DEL DIA. V. Designacion de las personas que habran de fungir
como Administrador Unico y Administrador Unico Suplente y como Comisario y
Comisario Suplente de la sociedad, respectivamente . . . VII. Designacion del
senor Julio Pedro Cepeda Robollo como Director General de la sociedad y
otorgamiento de poderes en su favor. VIII. Designacion del senor Sergio Rene
Aparicio Gonzalez como Director de Relaciones Industriales de la sociedad y
otorgamiento de poderes en su favor. IX. Modificacion total a los estatutos que
rigen a la sociedad para adecurlos a las reformas a la Ley General de Sociedades
Mercantiles en vigor a partir del 11 de junio de 1992. X. Designacion de
delegados para formalizar las resoluciones adoptadas por la Asamblea . . . PUNTO
CINCO. En relacion con este quinto punto del Orden del Dia el Presidente de la
Asamblea informo a los presentes sobre la renuncia, con efectos a partir del 4
de julio de 1994, de la senora Leticia Navarro Ochoa a su cargo de Administrador
Unica de la sociedad. Preciso el senor Alejandro Sainz Orantes que la renuncia
arriba mencionada surte sus efectos a partir del 4 de julio de 1994. Por su
parte, el senor Alejandro Nila Rosales, representante en la Asamblea de los
accionistas Calzada Mariano Escobedo
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151-155, S.A. de C.V., de Braun de Mexico y Compania, de C.V. y de Oral-B
Laboratorios, S.A. DE C.V., propuso que en el evento que fuera aceptada la
renuncia sometida a consideracion de la Asamblea i) se designase al senor Julio
Pedro Cepeda Rebollo Administrador Unico de la sociedad, y ii) se ratificase la
designacion del senor Luis Alfonso Cervantes Muniz para continuar desempanandose
como Administrador Unico Suplente. Incluyo tambien en su propuesta el senor Nila
Rosales la ratificacion de la designacion de los senores Fernando Holguin
Maillard y Eduardo Rodriguez Islas como Comisarios Propietario y Suplente,
respectivamente, de la sociedad. Entonces el Secretario de la Asamblea, senor
Luis Alfonso Cervantes Muniz, informo a los presentes que la designacion del
senor Julio Pedro Cepeda Rebollo como Administrador Unico de la sociedad fue
debidamente autorizada por el instituto Nacional de Migracion, como consta en el
oficio 12207 dictado por dicha autoridad en el expediente 5/214490 de 10. de
junio de 1994, con fundamento en las disposiciones aplicables de la Ley General
de Poblacion. Alcaro el propio senor Cervantes Muniz que por lo que respecta a
la ratificacion de su designacion no se requiere autorizacion alguna por parte
de las autoridades migratorias, dada su nacionalidad mexicana. Despues de
intercambiar impresiones sobre lo vertido respecto de este quinto punto del
Orden del Dia, los presentes, por unanimidad de votos, adoptaron las siguientes.
RESOLUCIONES. "1. Se acepta, con efectos al 4 de julio de 1994, la renuncia
sometida por la senora Leticia Navarro Ochoa a su cargo de Administradora Unica
de la sociedad, cargo para el que fue designada por escritura publica 29,607 de
2 de enero de 1991 otorgada por el licenciado
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Roberto Nunez y Bandera, Notario Publico 1 del Distrito Federal, el primer
testimonio de la cual quedo debidamente inscrito en el Registro Publico de
Comercio de esta capital en el folio mercantil 150313". "2. Se agradecen a la
senora Leticia Navarro Ochoa los relevantes servicios que presto a la sociedad
en su desempeno como Administradora Unico de la misma, y todos los accionistas y
representantes de accionistas hacen votos para que tenga el mayor de los exitos
en sus nuevas e importantes responsibilidades en Jafra Cosmetics International,
Inc." "3. Con efectos a partir del 4 de julio de 1994 se designa al senor Julio
Pedro Cepeda Rebollo como Administrador Unico de REDAY, S.A. DE C.V., haciendose
constar que la designacion que en este acto se resuelve fue debidamente
autorizada por el Instituto Nacional de Migracion, como consta en el oficio
12207 dictado por dicha autoridad en el expendiente 5/214490 de 10. de junio de
1994, con fundamento en las disposiciones aplicables de la Ley General de
Poblacion". "4. Se ratifica la designacion del senor Luis Alfonso Cervantes
Muniz como Administrador Unico Suplente de la sociedad". "5. Se ratifica la
designacion de los senores Fernando Holguin Maillard y Eduardo Rodriguez Islas
como Comisarios Propietario y Suplente, respectivamente, de REDAY, S.A. DE C.V."
Estando presente en la Asamblea el senor Julio Pedro Cepeda Rebollo procedio a
agradecer a la misma su designacion como Administrador Unico de REDAY, S.A. DE
C.V., manifestando que realizara su mejor esfuerzo para cumplir cabalmente con
sus obligaciones en tal caracter, y acto seguido exhibio en dinero efectivo cien
nuebos pesos, moneda nacional, como garantia de su gestion, dando asi
cumplimiento a lo dispuesto en el articulo XIV de los actuales
53
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estatutos sociales de REDAY, S.A. DE C.V. . . PUNTO SIETE. En relacion con este
septimo punto del Orden del Dia, el Presidente de la Asamblea comento a los
presentes la conveniencia de designar al senor Julio Pedro Cepeda Rebollo como
Director General de la sociedad, quien para el desempeno de sus funciones habra
de ser investido de poderes idoneos. Despues de comentar sobre la propuesta del
Presidente, la Asamblea, por unanimidad de votos, adopto las siguientes.
RESOLUCIONES. "1. Con efectos a partir del 4 de julio de 1994 se designa al
senor Julio Pedro Cepeda Rebollo Director General de REDAY, S.A. DE C.V., quien
como garantia de su gention deposito en la caja de la sociedad, la candidad de
cien nuevos pesos, moneda nacional, y para el desempeno de sus funciones gozara
del poder general de la sociedad para:- a) Pleitos, y cobranzas, con todas las
facultades generales y las especiales que requieren clausula especial conforme a
la ley, sin limitacion alguna, en los terminos del primer parrafo del articulo
dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal
y articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion, estando por lo tanto facultado para desistirse aun del juicio de
amparo; formular querellas y denuncias penales y otorgar perdon, cuando este
proceda; transigir; comprometer en arbitros; absolver y articular posiciones;
recusar jueces; recibir pagos y ejecutar todos los demas actos expresamente
autorizados por la ley, entre los que se incluye representar a la sociedad ante
toda clase de autoridades y tribunales, sean penales, civiles, administrativos o
del trabajo;- b) Administrar bienes, en los terminos del parrafo segundo del
articulo dos mil quinientos cincueta y cuatro del Codigo Civil para el Distrito
Federal y articulos
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correlativos en los Codigos Civiles de las entidades que integran la
Federacion;- c) La realizacion de actos que involucren las mas amplias
facultades de administracion y direccion por lo que respecta a la planeacion,
organizacion, mando y control del personal de REDAY, S.A. DE C.V. y, en
consecuencia, por ministerio del articulo 11 de lay Lay Federal del Trabajo,
habra de tener el caracter de representante legal de REDAY, S.A. DE C.V. en sus
relationes con los trabajadores; asimismo se le otorga, sin limitacion alguna,
en su caracter de representante legal, el poder general de la sociedad para
pleitos y cobranzas, con todas las facultades generales y aun las especiales que
de acuerdo con la ley requieran poder o clausula especial, en los terminos del
parrafo primero del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion. De manera enunciativa y no
limitativa, se mencionan, entre otras, facultades para representar a REDAY, S.A.
DE C.V.: i) ante toda clase de autoridades administrativas y judiciales, tanto
de caracter municipal como estatal y federal, ante el Instituto del Fondo
Nacional para la Vivienda de los Trabajadores, el Instituto Mexicano del Seguro
Social, el Fondo Nacional para el Consumo de los Trabajadores y el Sistema de
Ahorro para el Retiro, ii) ante las Juntas de Conciliacion y de Conciliacion y
Arbitraje, tanto locales como federales, y ante las authoridades laborales a que
se refiere el articulo quinientos veintitres de la Lay Federal del Trabajo, iii)
en toda clase de procedimientos, incluyendo el del amparo, y iv) compareciendo y
actuando, de acuerdo con lo dispuesto en los articulos once, seiscientos noventa
y dos, fraccion II, ochocientos setenta y seis, setecientos
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ochenta y seis, setecientos ochenta y siete y demas aplicables de la Ley Federal
del Trabajo, en la epapa conciliatoria, en la articulacion y absolucion de
posiciones y en toda la secuela de los juicios laborales en que REDAY, S.A. DE
C.V. sea parte o tercera interesada;- d) Suscribir y endorsar titulos de credito
en nombre y representacion de la sociedad, en terminos del articulo noveno de la
Ley General de Titulos y Operaciones de Credito, asi como abrir, operar y cerrar
cuentas de la sociedad con instituciones bancarias e instituciones bursatiles,
tanto del pais como del extranjero, en moneda nacional y en moneda extranjera,
designando a personas authorizadas para operar dichas cuentas y girar contra las
mismas; y - e) Otorgar y revocar poderes en terminos de los parrafos a), b) y c)
que anteceden, con o sin facultades de substitucion, y revocar poderes otorgados
por la sociedad".- "2. La designacion contenida en el parrafo resolutivo 1.
anterior queda sujeta a la condicion suspensiva de que el Instituto Nacional de
Migracion otorgue la autorizacion que procede conforme a la legislacion
aplicable".- Estando presente en la Asamblea el senor Julio Pedro Capeda Robollo
procedio a agradecer a la Asamblea su designacion como Director General de
REDAY, S.A. DE C.V., manifestando que realizara su major esfuerzo para cumplir
cabalmente con sus obligaciones en tal caracter. - PUNTO OCHO.- En relacion con
este octavo punto del Orden del Dia, el Presidente de la Asamblea comento a los
presentes la conveniencia de designar al senor Sergio Rene Aparicio Gonzalez
como Director de Relaciones Industriales de la sociedad, quien para el desempeno
de sus functiones habra de ser investido de poderes idoneos.- Despues de
comentar suore la propuesta del Presidente, la Asamblea, or unanimidad de votos,
adopto
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la siguiente.- RESOLUCION.- "Con efectos a partir del 10 de septiembre de 1994
se designa al senor Sergio Rene Aparicio Gonzalez Director de Relaciones
Industriales de REDAY, S.A. DE C.V., quien para el desempeno de sus funciones
gozara del poder general de la sociedad para:- a) Pleitos y cobranzas, con todas
las facultades generales y las especiales que requieren clausula especial
conforme a la ley, sin limitacion alguna, en los termios del primer parrafo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las entidades que
integran la Federacion, estando por lo tanto facultado para desistirse aun del
juicio de amparo; formular querellas y denuncias penales y otorgar perdon,
cuando este proceda; transigir; comprometer an arbitros; absolver y articular
posiciones; recusar jueces; recibir pagos y ejecutar todos los demas actos
expresamente authorizados por la ley, entre los que se incluye representar a la
sociedad ante toda clase de autoridades y tribunales, sean penales, civiles,
administrativos o del trabajo; b) Administrar bienes, en los terminos del
parrafo segundo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos Civiles
de las entidades que integran la Federacion; y - c) La realizacion de actos que
involucren las mas amplias facultades de administracion y direccion por lo que
respecta a la planeacion, organizacion, mando y control del personal de - REDAY,
S.A. DE C.V. y, en consecuencia, por ministerio del articulo 11 de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de REDAY,
S.A. DE C.V. en sus relaciones con los trabajadores; asimismo se le otorga, sin
limitacion alguna, en su caracter de representante
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legal, el poder general de la sociedad para pleitos y cobranzas, con todas las
facultades generales y aun las especiales que de acuerdo con la ley requieran
poder o clausula especial, en los terminos del parrafo primero del articulo dos
mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito Federal y
articulos correlativos en los Codigos Civiles de las entidades que integran la
Federacion. De manera enunciativa y no limitativa se mencionan, entre otras,
facultades para representar a REDAY, S.A. DE C.V.: i) ante toda clase de
autoridades administrativas y judiciales, tanto de caracter municipal como
estatal y federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto locales como
federales, y ante las authoridades laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo _____ y iv) compareciendo y actuando,
de acuerdo con lo dispuesto ___ los articulos once, seiscientos noventa y dos,
fraccion ___ ochocientos setenta y seis, setecientos ochenta y seis, setecientos
ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en la etapa
conciliatoria, en la articulacion ___ absolucion de posiciones y en toda la
secuela de los juicios laborales en que REDAY, S.A. DE C.V. sea parte or tercera
interesada".-Estando presente en la Asamblea el senor Sergio Rene Aparicio
Gonzalez procedio a agradecer a la Asamblea su designacion como Director de
Relaciones Industriales de REDAY, S.A. DE C.V., manifestando que realizara su
mejor esfuerzo para cumplir
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cabalmente con sus obligaciones en tal caracter. - PUNTO NUEVE.- Respecto de
este punto noveno del Orden del Dia, el Presidente de la Asamblea expuso a los
presentes que se considera conveniente modificar integramente los actuales
estatutos sociales de REDAY, S.A. DE C.V., a fin de que en ellos se incorporen
las modificaciones que sufrio nuestra Ley General de Sociedades Mercantiles,
mismas que entraron en vigor el 11 de junio de 1992, las que permiten mayor
flexibilidad en la realizacion de actos corporativos de la empresa y se adecuan
a la actual estructura de su capital social. Indico el Presidente que el
proyecto de nuevos estatutos sociales de REDAY, S.A. DE C.V. se hizo llegar
oportunamente a los accionistas de la sociedad para su analisis.- Los presentes
coincidieron en la conveniencia de modificar integramente los estatutos de la
sociedad en los terminos del proyecto que recibieron con oportuna anticipacion
los accionistas que representan, por lo que la Asamblea, por unanimidad de
votos, adopto las siguientes.-RESOLUCIONES.- "1. Con efectos a partir del 10 de
noviembre de 1994 se modifican integramente los estatutos sociales de REDAY,
S.A. DE C.V. en los terminos del proyecto que oportunamente y con anticipacion a
la fecha de esta Asamblea fue entregado a los accionistas de la sociedad".- "2.
Al expediente de esta acta se bajo la LETRA "D", un ejemplar de los nuevos
estatutos de REDAY, S.A. DE C.V. en vigor a partir del 10 de noviembre de 1994,
ejemplar que ha sido debidamente inicialado con fines de identificacion por el
Presidente y el Secretario de esta Asamblea".- PUNTO DIEZ.- En relacion con este
punto decimo del Orden del Dia, el Presidente manifesto la necesidad de designar
a la persona o personas que, en representacion de la sociedad, habran de
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comparecer ante Notario Publico para i) otorgar los poderes a que se contraen
las resoluciones adoptadas respecto de los puntos VI y VII del Orden del Dia de
esta Asamblea, ii) protocolizar el acta que de esta Asamblea se levante, iii)
insciribir el o los testimonios que contengan tal protocolizacion en el Registro
Publico de Comercio del Distrito Federal, y, iv) adoptar cuanta medida o accion
se requiera a efecto de que las resoluciones adoptadas por esta Asamblea cobren
pleno vigor y surtan todos sus efectos, proponiendo se designe para tal fin a la
senorita Elisa Iglesias Alvarez y a los senores Luis Alfonso Cervantes Muniz,
Alejandro Sainz Orantes y Alejandro Nila Rosales, quienes podran actuar conjunta
o separadamente, indistintamente.- La Asamblea, por unanimidad de votos, adopto
las siguientes.- RESOLUCIONES.- "1. En los terminos de lo dispuesto por el
articulo 10 de la Ley General de Sociedades Mercantiles se designan Delegados
Especiales de REDAY, S.A. DE C.V. a quienes fungieron como Presidente y
Secretario de la Asamblea, esto es, a los senores Alejandro Sainz Orantes y Luis
Alfonso Cervantes Muniz, a efecto de que conjuntamente comparezcan ante el
Notario Publico de su eleccion a otorgar, en representacion de REDAY, S.A. DE
C.V., los poderes a que se contraen las resoluciones adoptadas respecto de los
puntos VI. y VIII. del Orden del Dia de esta Asamblea General Ordinaria Anual y
Extraordinaria de Accionistas, teniendose el texto de tales poderes por aqui
reproducido como si se intertase a la letra".- "2. Se designan Delegados
Especiales de REDAY, S.A. DE C.V. a la senorita Elisa Iglesias Alvarez y a los
senores Luis Alfonso Cervantes Muniz, Alejandro Sainz Orantes y Alejandro Nila
Rosales, quienes podran actuar conjunta o separadamente,
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indistintamente, a efecto de que comparezcan ante al Notario Publico de su
eleccion a protocolizar el acta que de esta Asamblea se levante y a efecto de
que inscriban el o los primeros testimonios correspondientes en el Registro
Publico de Comercio de esta capital en el folio mercantil 150313".- No habiendo
otro asunto que tratar se suspendio la Asamblea por el tiempo necesario para la
redaccion de la presente acta, la cual fue posteriormente leida, aprobada y
firmada por todos los que en ella intervinieron.- Se hace constar que al momento
de adoptarse todas y cada una de las resoluciones contenidas en esta acta estuvo
representada y participo la totalidad del capital de la sociedad.- Se agregan al
expediente de esta acta: . . . d) Bajo la LETRA "D", el texto de los estatutos
sociales de REDAY, S.A. DE C.V. en vigor a partir del 10 de novienbre de 1994 .
. . . Se levanto la Asamblea a las 15:00 horas del 10 de agosto de 1994.- Una
firma.- Alejandro Sainz Orantes, en representacion de Grupo Jafra, S.A. de C.V.
y de Plumibol, S.A. de C.V.- Presidente.- Una firma.- Luis Alfonso Cervantes
Muniz.- Secretario.- Una firma.- Alejandro Nila Rosales, en representacion de
Calzada Mariano Escobedo 151- 155, S.A. de C.V., de Braun de Mexico y Compania,
de C.V. y de Oral-B Laboratorios, S.A. de C.V.- Una firma.- Julio Pedro Cepeda
Rebollo.- Una firma.- Sergio Rene Aparicio Gonzalez.- Una firma.- Fernando
Holguin Maillard.- Comisario".
V. AUTHORIZACION DEL INSTITUTO NACIONAL DE MIGRACION.- Los
comparecientes me exhiben el oficio marcado con el folio numero doce mil
doscientos siete, del expediente numero cinco diagonal doscientos catorce mil
cuatrocientos noventa, fechada el primero de junio de mil novecientos noventa y
cuatro,
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expedido por el Departamento de Inmigrantes "B", del Instituto Nacional de
Migracion de la Secretaria de Gobernacion, que contiene entre otras, la
autorizacion para que el senor JULIO PEDRO CEPEDA REBOLLO, se documente en
calidad de inmigrante, con el objeto de que preste sus servicios como
Administrador Unico de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE. Fotocopia
de dicho oficio, la agrego al apendice de esta escritura, en una foja util y con
la letra "A".
EXPUESTO LO ANTERIOR, LOS COMPARECIENTES
FORMALIZAN LO QUE SE CONTINUE EN LAS SIGUIENTES:
C L A U S U L A S
PROTOCOLIZACION PARCIAL
PRIMERA.- A solicitud de los senores Licenciados LUIS ALFONSO
CERVANTES MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados
Especiales de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, y en cumplimiento
del acuerdo respectivo, queda PROTOCOLIZADA en la presente en su parte
transcrita el ACTA DE ASAMBLEA GENERAL ORDINARIA ANUAL Y EXTRAORDINARIA DE
ACCIONISTAS de la expresada Sociedad, celebrada el primero de agosto de mil
novecientos noventa y cuatro, misma que he copiado en lo conducente en el
antecedente cuarto de este instrumento.
SEGUNDA.- En consecuencia, se tienen por formalizados los siguientes
acuerdos:
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A).- Con erectos al cuatro de julio de mil novecientos noventa y
cuatro, por aceptada la renuncia de la senora LETICIA NAVARRO OCHOA, al cargo de
Administradora Unica de la referida Sociedad.
B).- Con efectos a partir del cuatro de julio de mil novecientos
noventa y cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como
Administrador Unico de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quien
gozara de todas las facultades que la Ley concede a los de su clase y muy
especialmente de las senaladas en los Estatutos Sociales.
C).- Por ratificada la designacion del senor LUIS ALFONSO CERVANTES
MUNIZ, al cargo de Administrador Unico Suplente de la expresada Sociedad, quien
gozara de las facultades senaladas en la escritura relacionada en el inciso "A"
del antecedente segundo de la presente.
D).- Por ratificada la designacion de los senores FERNANDO HOLGUIN
MAILLARD y EDUARDO RODRIGUEZ ISLAS, a los cargos de Comisarios Propietario y
Suplente, respectivamente, de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
E).- Con efectos a partir del cuatro de julio de mil novecientos
noventa y cuatro, por designado al senor JULIO PEDRO CEPEDA REBOLLO, como
Director General de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE. Dicha
designacion, QUEDA SUJETA A LA CONDITION SUSPENSIVA de que el Instituto Nacional
de Migracion otorgue la autorizacion respectiva.
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F).- Con efectos a partir del primero de septiembre de mil
novecientos noventa y cuatro, por designado al senor SERGIO RENE APARICIO
GONZALEZ, somo Director de Relaciones Industriales de "REDAY", SOCIEDAD ANONIMA
DE CAPITAL VARIABLE.
G).- Con efectos a partir del primero de noviembre de mil
novecientos noventa y cuatro, por modificados integramente los estatuso sociales
de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
H).- Por designados como Delegados Especiales de "REDAY", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE, a los senores ALEJANDRO SAINZ ORANTES, LUIS ALFONSO
CERVANTES MUNIZ, ALEJANDRO NILA ROSALES, y a la senorita ELISA IGLESIAS ALVAREZ,
quienes tendran las facultades contenidas en el acta queha quedado protocolizada
parcialmente, mismas que se tienen aqui por reproducidas como si se insertasen a
la letra.
PROTOCOLIZACION
TERCERA.- A solicitud de los senores Licenciados LUIS ALFONSO
CERVANTEZ MUNIZ y ALEJANDRO SAINZ ORANTES, ambos en su caracter de Delegados
Especiales de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, quedan
PROTOCOLIZADOS en la presente, los nuevos Estatutos Sociales de la expresada
Sociedad, mismos que agrego al apendice de esta escritura, en doce fojas
utilizadas unicamente por el anverso y con la letra "B".
OTORGAMIENTO DE PODERES GENERALES
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CUARTA.- "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
como se ha dicho por sus Delegados Especiales, en cumplimiento del acuerdo
contenido en el acta que ha quedado protocolizada parcialmente por esta
escritura, OTORGA al senor JULIO PEDRO CEPEDA REBOLLO, para el desempeno de su
cargo de Director General de la expresada Sociedad, PODER GENERAL para:-
A).- PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las Entidades que integran la Federacion,
estando por lo tanto facultado para desistirse aun del juicio de amparo;
formular querellas y denuncias penales y otorgar perdon, cuando este proceda;
transigir; comprometer en arbitros; absolver y articular posiciones; recusar
jueces; recibir pagos y ejecutar todos los demas actos expresamente autorizados
por la Ley, entre los que se incluye representar a la Sociedad ante toda clase
de Autoridades y Tribunales, sean Penales, Civiles, Administrativos o del
Trabajo;
B).- ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las Entidades que
integran la Federacion;
C).- LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS
FACULTADES DE ADMINISTRACION Y DIRECCION por lo que respecta
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a la planeacion, organizacion, mando y control del personal de "REDAY", SOCIEDAD
ANONIMA DE CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once
de la Ley Federal del Trabajo, habra de tener el caracter de representante legal
de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones con los
trabajadores; asimismo se le otorga, sin limitacion alguna, en su caracter de
representante legal, el poder general de la Sociedad para pleitos y cobranzas,
con todas las facultades generales y aun las especiales que de acuerdo con la
Ley requieran poder o clausula especial, en los terminos del parrafo primero del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las Entidades que
integran la Federacion. De manera enunciativa y no limitativa se mencionan entre
otras, facultades para representar a "REDAY", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE: i) ante toda clase de Autoridades Administrativas y Judiciales, tanto
de caracter Municipal como Estatal y Federal, ante el Instituto del Fondo
Nacional para la Vivienda de los Trabajadores, el Instituto Mexicano del Seguro
Social, el Fondo Nacional para el Consumo de los Trabajadores y el Sistema de
Ahorro para el Retiro, ii) ante las Juntas de Conciliacion y de Conciliacion y
Arbitraje, tanto Localses como Federales, y ante las Autoridades Laborales a que
se refiere el articulo quinientos veintitres de la Ley Federal del Trabajo, iii)
an toda clase de procedimientos, incluyendo el del amparo, y iv) compareciendo y
actuando, de acuerdo con lo dispuesto en los articulos once, seiscientos noventa
y dos, fraccion dos (romano), ochocientos setenta y seis, setecientos ochenta y
seis, setecientos ochenta y siete y demas
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aplicables de la Ley Federal del Trabajo, en la etapa conciliatoria, en la
articulacion y absolucion de posiciones y en toda la secuela de los juicios
laborales en que "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, sea parte o
tercera interesada;
D).- SUSCRIBIR Y ENDOSAR TITULOS DE CREDITO en nombre y
representacion de la Sociedad, en terminos del articulo noveno de la Ley General
de Titulos y Operaciones de Credito, asi como abrir, operar y cerrar cuentas de
la Sociedad con Instituciones Bancarias e Instituciones Bursatiles, tanto del
pais como del extranjero, en moneda acional y en moneda extranjera, designando a
personas autorizadas para operar dichas cuentas y girar contra las mismas;
E).- OTORGAR Y REVOCAR PODERES en terminos de los parrafos A), B), y
C) que anteceden, con o sin facultades de substitution, y revocar poderes
otorgados por la Sociedad.
QUINTA.- "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, representada
como se ha dicho por sus Delegados Especiales, en cumplimiento del acuerdo
contenido en el acta que ha quedado protocolizada parcialmente en esta
escritura, OTORGA al senor SERGIO RENE APARICIO GONZALEZ, para el desempeno de
su cargo de Director de Relaciones Industriales de la expresada Sociedad, PODER
GENERAL para:
A).- PLEITOS Y COBRANZAS, con todas las facultades generales y las
especiales que requieren clausula especial conforme a la Ley, sin limitacion
alguna, en los terminos del primer parrafo del articulo dos mil quinientos
cincuenta y cuatro del
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Codigo Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las Entidades que integran la Federacion, estando por lo tanto
facultado para desistirse aun del juicio de amparo; formular querellas y
denuncias penales y otorgar perdon, cuando este proceda; transigir; comprometer
en arbitros; absolver y articular posiciones; recusar jueces; recibir pagos y
ejecutar todos los demas actos expresamente autorizados por la Ley, entre los
que se incluye representar a la Sociedad ante toda clase de Autoridades y
Tribunales, sean Penales, Civiles, Administrativos o del Trabajo;
B).- ADMINISTRAR BIENES, en los terminos del parrafo segundo del
articulo dos mil quinientos cincuento y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los Codigos Civiles de las Entidades que
integran la Federacion;
C).- LA REALIZACION DE ACTOS QUE INVOLUCREN LAS MAS AMPLIAS
FACULTADES DE ADMINISTRACION Y DIRECCION por lo que respecta a la planeacion,
organizacion, mando y control del personal de "REDAY", SOCIEDAD ANONIMA DE
CAPITAL VARIABLE y, en consecuencia, por ministerio del articulo once de la Ley
Federal del Trabajo, habra de tener el caracter de representante legal de
"REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, en sus relaciones con los
trabajadores; asimismo se le otorga, sin limicacion alguna, en su caracter de
representante legal, el poder general de la Sociedad para pleitos y cobranzas,
con todas las facultades generales y aun las especiales que de acuerdo con la
Ley requieran poder o clausula especial, en los terminos del parrafo primero del
articulo dos mil quinientos cincuenta y cuatro del Codigo Civil para el Distrito
Federal y articulos correlativos en los
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Codigos Civiles de las Entidades que integran la Federacion. De manera
enunciativa y no limitativa se mencionan entre otras, facultades para
representar a "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE: i) ante toda clase
de Autoridades Administrativas y Judiciales, tanto de caracter Municipal como
Estatal y Federal, ante el Instituto del Fondo Nacional para la Vivienda de los
Trabajadores, el Instituto Mexicano del Seguro Social, el Fondo Nacional para el
Consumo de los Trabajadores y el Sistema de Ahorro para el Retiro, ii) ante las
Juntas de Conciliacion y de Conciliacion y Arbitraje, tanto Locales como
Federales, y ante las Autoridades Laborales a que se refiere el articulo
quinientos veintitres de la Ley Federal del Trabajo, iii) en toda clase de
procedimientos, incluyendo el del amparo, y iv) compazreciendo y actuando, de
acuerdo con lo dispuesto en los articulos once, seiscientos noventa y dos,
fraccion dos (romano), ochocientos setenta y seis, setecientos ochenta y seis,
setecientos ochenta y siete y demas aplicables de la Ley Federal del Trabajo, en
la etapa concoliatoria, en la articulacion y absolucion de posiciones y en toda
la secuela de los juicios laborales en que "REDAY", SOCIEDAD ANONIMA DE CAPITAL
VARIABLE, sea parte o tercera interesada.
CLAUSULAS COMUNES
SEXTA.- Los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, en su citado caracter de Delegados Especiales de
"REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, liberan al suscrito Notario de la
obligacion de inscribir el primer testimonio de esta escritura, en el Registro
Publico de la Propiedad y de Comercio del Distrito Federal, siendo por cuenta de
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"REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, todos los gastos, derechos y
honorarios que dicho tramite origine.
SEPTIMA.- Los gastos y honorarios que la presente origine, seran por
cuenta de "REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE.
MANIFESTACIONES Y PERSONALIDAD
Manifestan los senores Licenciados LUIS ALFONSO CERVANTES MUNIZ y
ALEJANDRO SAINZ ORANTES, bajo protesta de decir verdad y advertidos previamente
de las penas en que incurren quienes declaran con falsedad ante Notario, que:
A).- Los funcionarios designados de la referida Sociedad, han
aceptado sus respectivos cargos y caucionado debidamente el manejo de los
mismos.
B).- Las firmas que aparecen al final del acta protocolizada
parcialmente, corresponden a las personas que se les atribuyen.
C). LA PERSONALIDAD que ostentan no les ha sido revocada ni en forma
alguna limitada, y acreditan la misma asi como la legal constitucion de su
representada, con los documentos relacionados en los antecedentes de la
presente.
POR SUS GENERALES, los comparecientes declaran ser mexicanos por
nacimiento; el senor LUIS ALFONSO CERVANTES MUNIZ, originario del Distrito
Federal, nacio el dieciseis de noviembre de mil novecientos cincuenta y cinco,
casado, Licenciado en Derecho, con domicilio en Campos Eliseos numero
trescientos cuarenta y cinco, tercer piso, colonia Chapultepec Polanco,
Delegacion Miguel Hidalgo, quien es de
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mi personal conocimiento; y el senor ALEJANDRO SAINZ ORANTES, originario del
Distrito Federal, nacio el doce de abril de mil novecientos setenta, soltero,
Licenciado en Derecho, con el mismo domicilio que el anterior, se identifica con
su licencia para conducir tipo "A" marcada con el numero "NVA" un millon ciento
setenta y tres mil trescientos setenta y seis, expedida el veinticuatro de
febrero de mil novecientos noventa y tres, por el modulo quince de la entonces
Secretaria General de Proteccion y Vialidad del Departamento del Distrito
Federal.
FINALMENTE CERTIFICO QUE: la presente ha sido redactada por mi el
Notario; lo relacionado e inserto concuerda con sus originales a que me remito;
los comparecientes a quienes explique ampliamente el valor y las consecuencias
legales de esta escritura, me son conocidos y tienen capacidad legal; la misma
les fue leida y conformes con ella la firman el dia tres del mismo mayo, en que
desde luego AUTHORIZO. - DOY FE.
LUIS ALFONSO CERVANTES MUNIZ.- Firma.- ALEJANDRO SAINZ ORANTES.- Firma.- CARLOS
ANTONIO REA FIELD.- Firma.- El sello de autorizar.
NOTAS COMPLEMENTARIAS
NOTA PRIMERA.- Mexico, Distrito Federal, a tres de mayo de mil
novecientos noventa y cinco.- Con esta fecha agrego al apendice en dos fojas
utiles y con la letra "C", el aviso que di al Registro Nacional de Inversiones
Extranjeras, conforme al articulo treinta y cuatro de la Ley de Inversion
Extranjera.- DOY FE.- CARLOS ANTONIO REA FIELD.- Rubrica.
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INSERCION DEL ARTICULO DOS MIL QUINIENTOS CINCUENTA Y CUATRO DEL
CODIGO CIVIL PARA EL DISTRITO FEDERAL.
"ART. 2554.- En todos los poderes generales para pleitos y
cobranzas, bastara que se diga que se otorga con todas las facultades generales
y las especiales aue requieran clausula especial conforme a la Ley, para que se
entiendan conferidos sin limitacion alguna.
En los poderes generales para administrar bienes, bastara expresar
que se dan con ese caracter para que el apoderado tenga toda clase de facultades
administrativas.
En los poderes generales, para ejercer actos de dominio, bastara que
se den con ese caracter para que el apoderado tenga todas las facultades de
dueno, tanto en lo relativo a los bienes, como para hacer toda clase de
gestiones, a fin de defenderlos.
Cuando se quisieren limitar, en los tres casos antes mencionados,
las facultades de los apoderados, se consignaran las limitaciones, o los poderes
seran especiales.
Los Notarios insertaran este articulo en los testimonios de los
poderes que otorguen.
ES PRIMER TESTIMONIO, QUE SE SACA DE SU ORIGINAL Y EXPIDO PARA
"REDAY", SOCIEDAD ANONIMA DE CAPITAL VARIABLE, A SU SOLICITUD. VA EN DIECIOCHO
FOJAS UTILES, DEBIDAMENTE COTEJADAS Y CORREGIDAS.- DOY FE.- MEXICO, DISTRITO
FEDERAL A TRES DE MAYO DE MIL NOVECIENTOS NOVENTA Y CINCO.
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EXHIBIT 3.11(A)
INSTITUTO NACIONAL DE MIGRACION,
DIRECCION DE INMIGRANTES E INMIGRADOS
DEPT. DE INMIGRANTES "B"
EXP. 6/214490
ASUNTO: Se autoriza la Internacion al pais, a persona
citan de nacionalidad ARGENTINA,
BRASILENA Y NORTEAMERICANA
Mexico, D.F., a 10 de junio de 1994.
LIC. EDUARDO IBARRELA NICOLIN
DIRECTOR GENERAL DE ASUNTOS CONSULARES
SECRETARIA DE RELACIONES EXTERIORES
RICARDO FLORES MAGON No. 1
ANEXO PLANTA BAJA
CIUDAD.
Agradecere a usted se sirva girar sus apreciables instituciones a
nuestra Representacion Consular en Los Angeles, California, E.U.A., a fin de que
se documenta en Calidad de INMIGRANTE por UN ANO, en los terminos del Articulo
48 Fraccion IV (CUARTA) de la Ley General de Poblacion, al senor JULIO PEDRO
CEPEDA REBOLLO, de nacionalidad ARGENTINA, para el exclusivo objeto de que
preste sus servicios como ADMINISTRADOR UNICO en las empresas DIRSAMEX, S.A. DE
C.V., QUALIFAX, S.A. DE C.V., REDAY, S.A. DE C.V., DISTRIBUIDORA VENUS, S.A. DE
C.V., Y JAFRA COSMETICS, S.A. DE C.V., asi como PRESIDENTE DE CONSEJO DE
ADMINISTRACION EN PLUMISOL, S.A. DE C.V., Y GRUPO JAFRA, S.A. DE C.V., todas
unos cados en esta Ciudad; con prohibicion para realizar otra actividad distinta
a las autoridades.
Asimismo se documentaran como INMIGRANTES por UN ANO, a los terminos
del Articulo 48 Fraccion VII (SEPTIMA) de la Ley General de Poblacion, a la
senora ANA ELENA CASTRO LEDESMA DE CEPEDA de nacionalidad
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ARGENTINA, e hijos LUCAS, MAXIPIA de nacionalidad BRASILENA Y THOMAS CEPEDA
CASTRO de nacionalidad NORTEAMERICANA, para el exclusivo objeto de que vivan al
lado y bajo la dependencia economica del senor JULIO PEDRO CEPEDA REBOLLO,
esposo y padre de las citadas personas, en virtud de haberse comprobado el nexo
familiar que los une entre si; con prohibicion para desempenar cualquier
actividad, excepto la de realizar estudios.
Cada uno de los citados extranjeros pagaran la suma de M$540.00
(QUINIENTOS CUARENTA NUEVOS PESOS 00/100 M.N.) por concepto de derechos
establecidos en el Articulo 9o. Fraccion I (PRIMERA) de la Ley Federal de
Derechos en vigor.
Se hara del conocimiento de los extranjeros arriba citados el
contenido de los Articulos 43, 45, 46, 47, y 63 de la Ley General de Poblacion y
de que cuentan con un plazo de TRES MESES, a partir de la fecha de despacho del
presente oficio para documentarse e internarse en el pais, asi como que en un
plazo de 45 dias naturales contados a partir de la fecha de la internacion el
senor JULIO PEDRO CEPEDA
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REBOLLO, debera acreditar encontrarse en el desempeno de las actividades para
las que fue autorizado.
ATENTAMENTE
SUFRAGIO EFECTIVO, NO REFLECCION
LA COMMISIONADA
LIC. BLANCA RUTH ESPONDA ESPINOZA
c.c.p.-Direccion de Inspeccion.-Edif.
c.c.p.-Deleg. del Instituto Nacional de Migracion.-Puerto Central Aero.
c.c.p.-Ares de Inf. de la Direc. de Inmigrantes e Inmig.-Edif.
3
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EXHIBIT 3.11(B)
REDAY, S.A. DE C.V.
ESTATUTOS
NOMBRE, DOMICILIO, OBJETO Y DURACION
ARTICULO I.
La denominacion de la sociedad es "REDAY" y debera ir siempre
seguida de las palabras "sociedad anonima de capital variable", o de su
abreviatura "S.A. de C.V."
ARTICULO II.
El domicilio de la sociedad es el Distrito Federal, Mexico; sin
embargo, podra establecer agencias o sucursales en cualquier otra parte de la
Republica Mexicana o del extranjero y someterse a domicilios convencionales.
ARTICULO III.
La sociedad tendra por objeto:
1) Adquirir, establecer, disponer de, dar o tomar en arrendamiento o
subarrendamiento, en comodato en subcomodato, administrar, operar, o
poseer en cualquier forma permitida por la ley fabricas, plantas
industriales, talleres, laboratorios, almacenes o bodegas, oficinas
tiendas y otros establecimientos y bienes inmuebles con el fin de otorgar
gratuita u onerosamente su uso y gozo a terceros en virtud de contratos de
arrendamiento, subarrendamiento, comodato o subcomodato, o cualquier otro
titulo juridico;
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2) Contruir, edificar, reparar, reconstruir, demoler, planear y
disenar toda clase de cases habitacion, edificios, estructuras, fabricas,
plantas industriales, talleres, laboratorios, almacenes o bodegas,
oficinas tiendas y otros establecimientos y bienes inmuebles;
3) Adquirir, enajenar, importar, exporter, gravar, dar o tomar en
arrendamiento y negociar en cualquier forma con toda clase de bienes
muebles;
4) Prestar y recibir servicios de construccion, diseno y
consultoria, asi como servicios administrativos y de supervision;
5) Prestar toda clase de servicios tecnicos, administrativos o de
supervision a negociaciones comerciales o industriales en Mexico o en el
extranjero y recibir tales servicios;
6) Solicitar, comprar, vender, dar o tomar en uso, ceder, registrar
y adquirir marcas industriales y de servicios, nombres comerciales,
derechos de autor, patentes, invenciones y procesos, asi como disponer de
ellos;
7) Actuar como contratista, subcontratista, agente o representante y
designar subcontratistas, agentes o representantes;
8) Adquirir acciones, participaciones, partes de interes y
obligaciones de toda clase de empresas o sociedades, sean civiles o
mercantiles, y formar parte de ellas;
9) Representar o ser agente o comisionista de negociaciones
comerciales o industriales nacionales o extranjeras;
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10) Dar o tomar dinero en prestamo con o sin garantia, emitir bonos,
valores hipotecarios, obligaciones y cualquiera otros titulos de credito
con la intervencion de las instituciones senaladas por la ley, y otorgar
fianzas o garantias de cualquier clase respecto de obligaciones contraidas
o de titulos emitidos o aceptados por la propia sociedad o por terceros;
11) Emitir, suscribir, aceptar y negociar en cualquier forma con
titulos de credito; y
12) Ejecutar toda clase de actos y celebrar toda clase de contratos
permitidos por la ley.
ARTICULO IV.
La sociedad tendra duracion de noventa y nueve anos contados a
partir de la fecha de su constitucion.
ARTICULO V.
El capital social es variable. El capital fijo sin derecho a retiro
es de N$10,000.00 M.N. (diez mil nuevos pesos 00/100, moneda nacional),
representado por 10,000 (diez mil) acciones ordinarias, nominativas, Serie "A",
con valor nominal de N$1.00 M.N. (un nuevo peso 00/100, moneda nacional) cada
una. A la fecha de adopcion de estos estatutos la parte variable del capital de
la sociedad esta integrada por N$25,162,154.00 M.N. (veinticinco millones ciento
sesenta y dos mil ciento cincuenta y cuatro nuevos pesos 00/100, moneda
nacional), representada por 25,162,154 (veinticinco
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millones ciento sesenta y dos mil ciento cincuenta y cuatro) acciones
ordinarias, nominativas, Serie "B", con valor nominal de N$1.00 M.N. (un nuevo
peso 00/100, moneda nacional) cada una.
Corresponderan a la Serie "A" aquellas acciones representativas de
la parte fija del capital social.
Corresponderan a la Serie "B" aquellas acciones representativas de
la parte variable del capital social.
En todo caso, la participacion de la inversion extranjera en el
capital de la sociedad habra de sujetarse a las disposiciones aplicables de la
Ley de Inversion Extranjera y su Reglamento.
Los certificados provisionales y los titulos definitivos
representativos de las acciones deberan cumplir con los requisitos establecidos
en el articulo ciento veinticinco de la Ley General de Sociedades Mercantiles;
podran amparar una o mas acciones y estaran firmados por dos miembros del
Consejo de Administracion o por el Administrador Unico, segun sea el caso.
ARTICULO VI.
Cada aumento o reduccion del capital social fijo sera decretado por
Asamblea General Extraordinaria de Accionistas. Cada aumento o reduccion del
capital social en la parte variable sera decretado por Asamblea General
Ordinaria de Accionistas.
En los terminos del articulo ciento treinta y dos de la Ley General
de Sociedades Mercantiles, en el caso de aumento de capital los accionistas
tendran derecho
4
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preferente para suscribir las acciones representativas del aumento en proporcion
al numero de acciones de que sean titulares.
Las resoluciones de las Asambleas Generales de Accionistas en las
que se acuerde aumento de capital seran publicadas en el Diario Oficial de la
Federacion. Ademas, las mencionadas resoluciones se notificaran a los
accionistas por medio de cartas que se enviaran por correo certificado con
anterioridad a la fecha de su publicacion, a las direcciones que aparezcan
inscritas en el Libro de Registro de Acciones de la sociedad. En caso de que
existan accionistas domiciliados en el extranjero, dichas cartas se enviaran por
correo aereo certificado.
Los accionistas deberan ejercer su derecho preferente antes
mencionado dentro de los quince dias de calendario siguientes a la fecha de
publicacion de la resolucion. Sin embargo, si la totalidad del capital social
estuviere representado en alguna Asamblea que decretase incremento de capital,
el periodo de quince dias de calendario se computara a partir de la fecha de la
Asamblea correspondiente y los accionistas se daran por notificados de la
resolucion desde la fecha de la Asamblea, por lo que la publicacion y
notificacion de la resolucion de incremento de capital no seran necesarias.
ARTICULO VII.
La sociedad podra adquirir las acciones representativas de su propio
capital social para su amortizacion con utilidades repartibles mediante
resolucion al efecto de la Asamblea General Extraordinaria de Accionistas, sin
disminucion del capital
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social. La designacion de las acciones que hayan de ser amortizadas se hara por
sorteo, en los terminos y condiciones que disponga la Asamblea General
Extraordinaria de Accionistas o, por delegacion especifica de esta, el Consejo
de Administracion, sujetandose al monto maximo de utilidades repartibles que
habra de ser fijado por la propia Asamblea. Los titulos de las acciones
amortizadas quedaran extinguidos.
ADMINISTRACION DE LA SOCIEDAD
ARTICULO VIII.
La administracion de la sociedad estara confiada a un Administrador
Unico o a un Consejo de Administracion formado por el numero de miembros que
determine la Asamblea de Accionistas. Si la Asamblea lo considera pertinente,
podra designar un Administrador Unico Suplente o a Consejeros Suplentes, segun
sea el caso. Los Consejeros y sus Suplentes podran ser o no accionistas;
desempenaran sus cargos hasta que las personas designadas para substituirlos
tomen posesion de los mismos; podran ser reelectos y recibiran las
remuneraciones que determine la Asamblea de Accionistas.
ARTICULO IX.
En el evento de que la sociedad sea administrada por un Consejo de
Administracion, cualquier accionista o grupo de accionistas que represente
cuando menos el veinticinco por ciento del capital social tendra el derecho de
designar a un miembro del Consejo y a su Suplente, si hubiere Suplentes. En caso
de que ningun accionista o grupo
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de accionistas ejerza el derecho de las minorias establecido en este articulo,
todos los miembros del Consejo de Administracion seran designados por mayoria de
votos.
ARTICULO X.
El Consejo de Administracion o el Administrador Unico, en su caso,
sera el representante legal de la sociedad y tendra las siguientes facultades y
obligaciones:
1. Ejercitar el poder para pleitos y cobranzas, con todas las
facultades generales y las especiales que requieran de clausula especial
de acuerdo con la ley, sin limitacion alguna, de conformidad con lo
dispuesto por el primer parrafo del articulo dos mil quinientos cincuenta
y cuatro del Codigo Civil para el Distrito Federal y articulos
correlativos en los Codigos Civiles de las entidades federativas de los
Estados Unidos Mexicanos, estando por lo tanto facultado para desistirse
de procedimientos, aun del juicio de amparo; formular querellas y
denuncias penales y desistirse de ellas; coadyuvar con el Ministerio
Publico y otorgar perdon; transigir; someterse a arbitraje; formular y
absolver posiciones; recusar jueces; recibir pagos y ejecutar todos los
demas actos expresamente autorizados por la ley, entre los qua se incluye
representar a la sociedad ante autoridades y tribunales penales, civiles,
administrativos y del trabajo;
2. Administrar bienes de acuerdo con lo dispuesto por el segundo
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos;
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3. Ejecutar actos de dominio de acuerdo con lo previsto en el tercer
parrafo del articulo dos mil quinientos cincuenta y cuatro del Codigo
Civil para el Distrito Federal y articulos correlativos en los Codigos
Civiles de las entidades federativas de los Estados Unidos Mexicanos;
4. Suscribir titulos de credito de conformidad con el articulo
noveno de la Ley General de Titulos y Operaciones de Credito;
5. Abrir, operar y cerrar cuentas bancarias a nombre de la sociedad,
en el pais y en el extranjero, en moneda nacional y en moneda extranjera,
y designar a las personas que puedan girar contra las mismas;
6. Nombrar y remover al director general y demas directores,
gerentes, funcionarios y empleados de la sociedad y determinar sus
condiciones de trabajo, remuneraciones y facultades;
7. Formular reglamentos interiores de trabajo;
8. Convocar Asambleas de Accionistas y ejecutar sus resoluciones;
9. Llevar a cabo todos los actos autorizados por estos estatutos o
que sean consecuencia de los mismos; y
10. Conferir poderes generales y especiales en los terminos de los
parrafos uno, dos, tres, cuatro y cinco anteriores, con o sin facultades
de substitucion, asi como revocar los poderes que hubieren sido otorgados
por la sociedad.
ARTICULO XI.
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Cuando la sociedad sea administrada por organo colegiado el
Presidente y el Secretario del Consejo de Administracion seran designados por la
Asamblea de Accionistas o por el Consejo de Administracion, y tendran las
facultades que se les otorguen al ser designados. El Secretario podra ser o no
miembro del Consejo.
ARTICULO XII.
Para que las sesiones del Consejo de Administracion sean validas se
requerira, en todo caso, la asistencia de la mayoria de sus miembros o de sus
respectivos suplentes. El Consejo de Administracion adoptara sus resoluciones
por mayoria de votos de los miembros presentes en cada Sesion.
Conforme a lo previsto en el articulo 143 de la Ley General de
Sociedades Mercantiles, los miembros del Consejo de Administracion podran
adoptar validamente resoluciones sin estar reunidos en formal Sesion, siempre
que tales resoluciones se confirmen por escrito por todos los miembros del
Consejo de Administracion. En todo caso sera responsabilidad de quien desempene
el cargo de Secretario del Consejo de Administracion de cerciorarse de la
autenticidad de tales escritos, de su formalizacion y de su conservacion.
ARTICULO XIII.
El Presidente no tendra voto de calidad en caso de empate. Si el
Presidente o el Secretario no asisten a la Sesion, el cargo respectivo, para
efectos de la Sesion, sera ocupado por el Consejero designado por mayoria de
votos de los miembros
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presentes. Las actas de Sesiones del Consejo seran transcritas en un libro
especialmente autorizado y seran firmadas por quienes actuen como Presidente y
Secretario de cada Sesion, asi como por cualquier Consejero que asistiere y
deseare hacerlo.
ARTICULO XIV.
Para garantizar el desempeno de sus cargos el Administrador Unico o,
en su caso, los Consejeros y sus respectivos Suplentes, al tomar posesion,
depositaran con la sociedad la cantidad de N$100.00 M.N. (cien nuevos pesos
00/100, moneda nacional) cada uno, o, a su eleccion, exhibiran poliza de fianza
otorgada por compania autorizada por igual suma. Los Consejeros o el
Administrador Unico, segun sea el caso, no podran retirar las garantias
otorgadas hasta que su gestion haya sido aprobada por Asamblea de Accionistas.
Los directores y demas funcionarios de la sociedad otorgaran las garantias que
determine la Asamblea de Accionistas o el Consejo de Administracion que los
designe.
VIGILANCIA DE LA SOCIEDAD
ARTICULO XV.
La vigilancia de la sociedad estara encomendada a uno o dos
Comisarios, segun lo determine la Asamblea de Accionistas. Si la Asamblea lo
considerare pertinente designara uno o dos Comisarios Suplentes.
ARTICULO XVI.
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Los Comisarios no necesitan ser accionistas de la sociedad; podran
ser reelectos y desempenaran su cargo hasta que las personas designadas para
suplirlos tomen posesion de los mismos.
ARTICULO XVII.
Los Comisarios tendran las facultades y las obligaciones
establecidas en el articulo ciento sesenta y seis de la Ley General de
Sociedades Mercantiles.
ARTICULO XVIII.
Los Comisarios otorgaran las garantias senaladas en el articulo XIV
de estos estatutos para los Consejeros, y solo podran retirarlas cuando su
gestion haya sido aprobada por Asamblea de Accionistas.
ASAMBLEAS DE ACCIONISTAS
ARTICULO XIX.
Las Asambleas de Accionistas se celebraran en el domicilio de la
sociedad. Seran Extraordinarias las Asambleas convocadas para tratar cualquiera
de los asuntos incluidos en el articulo ciento ochenta y dos de la Ley General
de Sociedades Mercantiles. Todas las demas Asambleas seran Ordinarias.
ARTICULO XX.
Las convocatorias para Asambleas de Accionistas deberan ser
expedidas por el Administrador Unico o por el Presidente o el Secretario del
Consejo de
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Administracion, segun sea el caso, o, en la medida en que lo permita la ley, por
el Comisario o Comisarios. Sin embargo, los accionistas que representen cuando
menos el treinta y tres por ciento del capital social podran solicitar por
escrito, en cualquier tiempo, que el Administrador Unico o el Consejo de
Administracion, segun sea el caso, o los Comisarios, convoquen a Asamblea de
Accionistas para tratar los asuntos especificados en su solicitud. Cualquier
accionista titular de una o mas acciones tendra el mismo derecho en cualquiera
de los casos senalados en el articulo ciento ochenta y cinco de la Ley General
de Sociedades Mercantiles. Si el Administrador Unico o el Presidente o el
Secretario del Consejo de Administracion, segun sea el caso, o los Comisarios,
no expidieren la convocatoria dentro de los quince dias siguientes a la fecha de
la solicitud, un Juez de lo Civil o de Distrito del domicilio de la sociedad
hara la convocatoria a peticion de cualquier accionista interesado, debiendo
exhibir sus acciones para tal efecto, de conformidad con lo previsto por la Ley.
ARTICULO XXI.
Las convocatorias para Asambleas se publicaran en el Diario Oficial
de la Federacion con por lo menos quince dias de anticipacion a la fecha fijada
para la Asamblea. Ademas, las convocatorias se notificaran por carta a los
accionistas, que se enviaran por correo certificado, con anterioridad a la fecha
de publicacion de la convocatoria a las direcciones que aparezcan en el Libro de
Registro de Acciones de la sociedad. Tratandose de accionistas domiciliados en
el extranjero, dichas cartas se
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enviaran por correo aereo certificado. Las convocatorias contendran el Orden del
Dia y estaran firmadas por quien las expida.
ARTICULO XXII.
Las Asambleas podran celebrarse sin previa publicacion de
convocatoria si el capital social esta representado en su totalidad y participa
al momento de la votacion.
ARTICULO XXIII.
So1o los accionistas que aparezcan inscritos en el Libro de Registro
de Acciones de la sociedad como titulares de una o mas acciones seran admitidos
en Asambleas.
ARTICULO XXIV.
Los accionistas podran ser representados en Asambleas por la persona
o personas que designen mediante carta poder firmada ante dos testigos, o por
cualquier otra forma de mandato conferido de acuerdo con la ley.
ARTICULO XXV.
Las actas de Asambleas se transcribiran a un libro especialmente
autorizado y deberan ser firmadas por las personas que hayan fungido como
Presidente y Secretario de la Asamblea, asi como por los Comisarios presentes y
por los accionistas o representantes de accionistas que desearen firmar.
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ARTICULO XXVI.
Las Asambleas seran presididas por el Administrador Unico o por el
Presidente del Consejo de Administracion, segun sea el caso. Sin embargo, en
caso de que quien desempene alguno de los cargos mencionados estuviere ausente,
la Asamblea en cuestion sera presidida por la persona que se designe por
resolucion de la propia Asamblea. El Secretario del Consejo de Administracion
actuara como Secretario de las Asambleas de Accionistas; sin embargo, en su
ausencia, actuara como tal la persona designada por resolucion de la Asamblea.
ARTICULO XXVII.
Las Asambleas Ordinarias se celebraran cuando menos una vez al ano
dentro de los cuatro meses siguientes al cierre de cada ejercicio social. Ademas
de los asuntos especificados en el Orden del Dia, la Asamblea Ordinaria Anual
debera discutir, aprobar o modificar el informe del Consejo de Administracion
que incluya los informes y estados financieros a que se refiere el enunciado
general del articulo ciento setenta y dos de la Ley General de Sociedades
Mercantiles, tomando en cuenta el informe del Comisario o Comisarios, y adoptar
las medidas que juzgue oportunas; designar al Administrador Unico o a los
miembros del Consejo de Administracion, segun sea el caso, y al Comisario o
Comisarios, asi como determinar las remuneraciones al Administrador Unico o a
los miembros del Consejo de Administracion y a los Comisarios.
ARTICULO XXVIII.
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Para que sean validas las Asambleas Ordinarias de Accionistas
celebradas en virtud de primera o ulterior convocatoria deberan reunir la
presencia de, por lo menos, el cincuenta por ciento de las acciones
representativas del capital social.
ARTICULO XXIX.
Para que sean validas las Asambleas Extraordinarias de Accionistas
celebradas en virtud de primera convocatoria, deberan reunir, por lo menos, la
presencia del sesenta y cinco por ciento de las acciones representativas del
capital social. En caso de segunda o ulterior convocatoria, la Asamblea se
considerara legalmente instalada si estuviere presente, cuando menos, el
cincuenta por ciento de las acciones representativas del capital social.
ARTICULO XXX.
Tratandose de Asambleas Ordinarias, las resoluciones en ellas
adoptadas seran validas cuando se emita voto favorable por la mayoria de las
acciones presentes, siempre y cuando hubiere existido quorum de presencia en los
terminos del articulo XXVIII de los estatutos sociales.
En el caso de Asambleas Extraordinarias, sus resoluciones seran
validas cuando sean adoptadas por el voto favorable de las acciones que
representen, cuando menos, el cincuenta por ciento de las acciones que integren
el capital social.
ARTICULO XXXI.
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Conforme a lo dispuesto en el articulo 178 de la Ley General de
Sociedades Mercantiles, podran validamente los accionistas adoptar resoluciones
sin la celebracion de Asamblea, siempre y cuando tales resoluciones consten por
escrito firmado por todos los accionistas titulares de la totalidad de las
acciones con derecho a voto representativas del capital de la sociedad. En todo
caso sera responsibilidad de quien desempene el cargo de Secretario del Consejo
de Administracion cerciorarse de la autenticidad de tales escritos, de su
formalizacion y de su conservacion.
INFORMACION FINANCIERA
ARTICULO XXXII.
Dentro de los cuatro meses siguientes al cierre de cada ejercicio
social, el Administrador Unico o el Consejo de Administracion, en su caso,
formulara los siguientes estados financieros, los que deberan contener toda la
informacion que sea necesaria para reflejar el estado que guarda la situacion
financiera y operative de la sociedad, en terminos del enunciado general del
articulo ciento setenta y dos de la Ley General de Sociedades Mercantiles:
a) Estado de situacion financiera a la fecha de cierre del ejercicio
social;
b) Estado que muestre debidamente explicados y clasificados los
resultados de la sociedad durante el ejercicio;
c) Estado que muestre los cambios en la situacion financiera
ocurridos durante el ejercicio social;
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d) Estado que muestre los cambios en las partidas que integran el
capital contable ocurridos durante el ejercicio social; y
e) Las notas complementarias o aclaratorias a los estados
financieros anteriores.
ARTICULO XXXIII.
Los estados financieros, junto con los documentos justificativos,
deberan ser entregados al Comisario o Comisarios con un mes de anticipacion,
cuando menos, a la fecha fijada para la Asamblea General Anual Ordinaria de
Accionistas que sea convocada para resolver sobre los mismos.
ARTICULO XXXIV.
Dentro de los quince dias siguientes a la fecha en que les hayan
sido entregados los estados financieros, los Comisarios deberan entregar al
Administrador Unico o al Consejo de Administracion, segun sea el caso, un
informe para los accionistas respecto de la veracidad, suficiencia y
razonabilidad de la informacion que les haya sido presentada por el Consejo de
Administracion o por el Administrador Unico.
Dichos documentos quedaran en poder del Administrador Unico o del
Consejo de Administracion, segun sea el caso, a disposicion de los accionistas,
para su revision, por lo menos durante los quince dias anteriores a la fecha
senalada para la Asamblea General Ordinaria Anual de Accionistas.
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Los estados financieros, una vez aprobados, deberan mandarse
publicar y depositar en la forma y terminos previstos en el articulo ciento
setenta y siete de la Ley General de Sociedades Mercantiles.
ARTICULO XXXV.
Las utilidades netas de cada ejercicio social seran distribuidas de
la siguiente manera:
1) El cinco por ciento para constituir y, si fuese necesario, para
reconstituir, el fondo de reserva legal, hasta que sea igual a, cuando
menos, el veinte por ciento del capital social;
2) El saldo de las utilidades netas se aplicara segun lo determine
la Asamblea General Ordinaria de Accionistas.
ARTICULO XXXVI.
Las perdidas, si las hubiere, seran reportadas primeramente por los
fondos de reserva y, si estos fueren insuficientes, por el capital social
pagado, en el entendido de que la responsabilidad de los accionistas en relacion
a las obligaciones de la sociedad estara limitada al pago del valor nominal de
sus respectivas acciones.
DISOLUCION Y LIQUIDACION
ARTICULO XXXVII.
La sociedad se disolvera en cualquiera de los supuestos establecidos
en la ley. Una vez disuelta la sociedad se pondra en liquidacion. La liquidacion
se
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encomendara a uno o mas liquidadores designados por Asamblea Extraordinaria de
Accionistas. Si la Asamblea no hiciere la designacion correspondiente la hara un
Juez de lo Civil o de Distrito del domicilio de la sociedad a solicitud de
cualquier accionista.
ARTICULO XXXVIII.
En ausencia de instrucciones expresas en contrario dadas a los
liquidadores por la Asamblea, la liquidacion se llevara a cabo de acuerdo con
las siguientes bases generales:
1) Conclusion de los negocios pendientes de la manera menos
perjudicial para los acreedores y para los accionistas;
2) Cobro de cuentas por cobrar y pago de deudas;
3) Venta de todos los activos de la sociedad;
4) Preparacion del balance final de liquidacion;
5) Distribucion del remanente, si lo hubiere, entre los accionistas,
en proporcion a su participacion en el capital social.
DISPOSICIONES GENERALES
ARTICULO XXXIX.
Los socios fundadores, como tales, no se reservan participacion
alguna.
ARTICULO XL.
Todo extranjero que en el acto de la constitucion o en cualquier
tiempo ulterior adquiera un interes o participacion social en la sociedad se
considerara por ese
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solo hecho como mexicano respecto de uno y otra, y se entendera que conviene en
no invocar la proteccion de su gobierno, bajo la pena, en caso de faltar a su
convenio, de perder dicho interes o participacion en beneficio de la Nacion
Mexicana.
ALFONSO GONZALEZ ALONSO, notario treinta y uno del Distrito Federal,
CERTIFICA: Que la presente copia fotostatica, que consta de veintiseis fojas,
impresas por ambos lados, con excepcion de la primera y la veinte, es fiel
reproduccion de su original (de la uno a la diecinueve), de la a su vez copia
fotostatica con medio sello impreso al extremo inferior izquierdo en original
(la veinte) y de la a su vez copia certificada (de la veintiuno a la
veintiseis), que tuvo a la vista y con las cuales la cotejo, levantando para
constancia el registro numero mil novecientos setenta, en el libro de registro
de cotejos del protocolo de la notaria a su cargo.
Mexico, Distrito Federal, a veintitres de abril de mil novecientos
noventa y ocho.
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EXHIBIT 3.11(C)
Estatutos Sociales of REDAY, S.A. de C.V.
Name, Domicile, Purpose, Duration and Nationality
Article 1. The name of the company is "Reday" which denomination shall
always be followed by the words "Sociedad Anonima de Capital Variable," or by
their abbreviation, "S.A. de C.V."
Article 2. The domicile of the company is Distrito Federal, Mexico.
However, the company may establish agencies or branches in any other part of
Mexico or a foreign territory, or designate conventional domiciles for the
execution of specific acts and contracts.
Article 3. The purpose of the company is:
1. To acquire, establish, dispose of, lease or sublease or take under
lease or sublease, administer, operate, and possess, in any manner permitted by
law, factories, industrial plants, workshops, laboratories, warehouses, offices,
stores and any form of personal property, as well as to grant the use and
enjoyment thereof to third parties through lease and sublease contracts and any
other manner prescribed by law.
2. To construct, build, repair, reconstruct, demolish, plan and design all
classes of buildings, structures, factories, industrial plants, workshops
laboratories, warehouses, offices, stores and any form of personal property.
3. To acquire, alienate, encumber, lease, sublease or take under lease or
sublease and do business with any kind of real property.
4. To lend or to receive services for construction, design and
consultation, as well as administrative and supervisory services.
5. To offer all classes of technical service, administrative consulting
and supervision to industrial and commercial entities, in Mexico and abroad, and
to receive the same services from such other industrial and commercial entities.
6. To solicit, obtain, register, purchase, utilize, and dispose of and
acquire in any other form, trademarks, trade names, copyrights, patents,
inventions and processes.
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7. To act as contractor, subcontractor, agent or representative and to
appoint contractors, subcontractors, agents and representatives.
8. To acquire shares, participations, interests and obligations of all
types of enterprises and corporations, whether commercial or not, and take part
in their management.
9. To act as agent, or to represent in any other manner, all types of
companies and individuals, within or outside Mexico.
10. To lend or borrow money by any means, with or without security, issue
bonds or other types of obligations, and grant mortgages and real or personal
property of the company. The company shall have the power to grant security
interests to third parties, as well as guaranty the obligations of third
parties. The foregoing shall be carried out in each case under the supervision
and intervention of those institutions whose participation is required by law.
11. To issue, subscribe to, accept and negotiate all forms of credit
agreements.
12. To execute any and all acts that are permitted by law.
Article 4. The duration of the company shall be 99 years, beginning with
the date of its incorporation.
Article 5. The capital stock shall be variable. The fixed portion of the
capital, which is not subject to withdrawal, is Ps.$10,000.00 New Pesos (Ten
Thousand New Pesos), represented by 10,000 ordinary, Series "A" shares, with a
par value of Ps.$1.00 New Peso (One New Peso) per share.
The variable portion of the capital stock shall be designated as Series
"B" shares. At the date of adoption of these estatutos, the variable capital
stock of the company is PsN$25,162,154.00 (Twenty-Five Million One Hundred Sixty
Two Thousand and One Hundred Fifty Four New Pesos), represented by 25,162,154
(twenty five million one hundred sixty two thousand and one hundred fifty four)
ordinary Series "B" shares with a par value of PsN$1.00 (One New Peso).
In any case, the participation of foreign investors in the capital stock
of the company shall be subject to the applicable provisions of the Law on
Foreign Investment and its applicable regulations.
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Stock certificates and provisional certificates shall comply with the
requirements specified in Article 125 of the General Corporations Law; stock
certificates may represent title to one or more shares and shall bear the
signature of two members of the Board of Directors or by the Sole Administrator,
as the case may be.
Article 6. Each increase or reduction of the fixed capital stock of the
company shall be declared by an Extraordinary Stockholders' Meeting. Each
increase or reduction of the variable capital stock of the company shall be
declared by an Ordinary Shareholders' Meeting.
According to the provisions of Article 132 of the General Corporations
Law, in the case of increase in the capital stock of the corporation,
stockholders shall have a preemptive right to subscribe to those shares
representing the increase in the capital stock of the company. In such a case,
the subscription right may be exercised in proportion to the number of
outstanding shares which the stockholder already owns.
Resolutions adopted at Stockholders' Meetings that approve any increase in
the capital stock of the company shall be published in the Official Gazette of
the Federation (Diario Oficial de la Federacion). Additionally, notice of the
adoption of such resolutions shall be sent to the Stockholders by certified mail
prior to the date of publication, to those addresses that are inscribed in the
Stock Registry Book of the company. In the event that there are Stockholders
domiciled outside of Mexico, notice shall be sent by certified air mail.
The Stockholders may exercise their preemptive rights within fifteen (15)
calendar days following the date of publication of the resolution adopting an
increase in the capital stock of the company. However, if the entire capital
stock of the company shall have been represented in any meeting adopting an
increase in capital stock, the period of fifteen (15) calendar days shall be
counted from the date of such meeting.
Article 7. The company may reacquire shares representing the capital stock
of the company for their redemption with dividends through the means specified
by resolution of an Extraordinary Stockholders' Meeting, without diminution of
the capital stock of the company. The designation of those shares that shall be
redeemed shall be made by means of a lottery, the terms and conditions of which
shall be determined by the Extraordinary Stockholders' Meeting, or by their
delegation of such powers to the Board of Directors. The foregoing redemption
right shall be subject to the maximum amount of profits that may be issued for
such a purpose, such amount to be determined by the Extraordinary Stockholders'
Meeting. Title to those shares that shall have been redeemed according to the
provisions of this paragraph shall be deemed extinguished upon redemption.
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ADMINISTRATION
Article 8. The administration of the company shall be entrusted to a Sole
Administrator or to a Board of Directors composed of the number of Directors
determined by the Ordinary Stockholders' Meeting. If the Stockholders shall deem
it necessary, they may designate an Alternate Sole Administrator or Alternate
members of the Board of Directors, as the case may be. The Sole Administrator or
the members of the Board of Directors, as the case may be, need not be
Stockholders. They shall hold their offices until their successors take their
place, but they may be reelected and shall receive compensation as determined by
the Ordinary Stockholders' Meeting.
Article 9. In the event that the company is administered by a Board of
Directors, any Stockholder or group of Stockholders representing at least 25%
(Twenty-Five Percent) of the capital stock of the company shall have the right
to appoint one member of the Board of Directors and his/her Alternate. In the
event that no Stockholder or group of Stockholders exercises the minority
Stockholders' rights established by this Article, all the members of the Board
of Directors shall be appointed by a majority of Stockholder votes.
Article 10. The Board of Directors or the Sole Administrator, as the case
may be, shall have the following authority and obligations:
1. General power of attorney for lawsuits and collections, with the
broadest power as permitted by law, in the terms of the first paragraph of
Article 2554 of the Civil Code for the Federal District and its correlative
Articles of any Civil Code of the states comprising the United Mexican States
(the "Civil Code"), with all general and such special powers as may be required,
including those provided in Article 2587 of the Civil Code, wherefore they will
have, without limiting the generality of the foregoing, the following authority:
to represent the company before Federal, State, Municipal, Administrative and
Judicial authorities, before the Secretary of Labor and before Conciliation and
Arbitration Boards and to sign such documents as may be required in the exercise
of this power of attorney; to exercise all types of rights and actions before
any and all authorities and Boards of Conciliation and Arbitration; to submit to
any jurisdiction; to promote and withdraw from litigation; to file charges and
criminal complaints and appear as offended party and assist the District
Attorney and grant pardons; to compromise; to submit to arbitration; to take and
answer depositions; to accept and release all kind of guarantees; to assign
property and to perform all other actions which are expressly determined by law.
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2. General power of attorney for acts of administration, under the terms
of the second paragraph of Article 2554 of the Civil Code, including the
authority to execute, amend, carry out and rescind all kind of contracts and
agreements, to obtain loans and in general, to carry out all acts that are
related directly or indirectly to the corporate purposes.
3. General power of attorney for acts of ownership, under the terms of the
third paragraph of Article 2554 of the Civil Code, including the authority to
acquire personal and real property, to transfer title to as well as to encumber
by pledge, mortgage or otherwise, personal and real property.
4. Power to issue, sign and endorse negotiable instruments in accordance
with Article 9 of the General Law of Negotiable Instruments and Credit
Transactions.
5. Power to establish branches and agencies in any location of the United
Mexican States or abroad and to close such branches or agencies.
6. Power to designate and remove managers, officers and employees of the
company and to determine their powers, duties and remuneration.
7. Power to formulate internal regulations affecting employment in the
company.
8. Power to convene Stockholders' Meetings and to execute their
resolutions.
9. Power to exercise any other authority granted to it in these estatutos
and those powers that are by implication necessary to carry out the terms of the
estatutos.
10. Power to confer and revoke general and special powers of attorney
within the scope of the aforementioned powers.
Article 11. To facilitate the administration of the company when the Board
of Directors are in session, a President and a Secretary of the Board of
Directors shall be designated by the Ordinary Stockholders or by the Board of
Directors, such designation to be made for the purpose of performance of
specific duties on the part of the President and Secretary. The Secretary does
not have to be a member of the Board of Directors.
Article 12. In order for meetings of the Board of Directors to be legally
held, the attendance of at least the majority of the Directors or their
respective alternates shall be required. Resolutions of the Board of Directors
shall be valid only if adopted by the
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affirmative vote of the majority of the members of the Board of Directors
present at the meeting.
In accordance with the provisions of Article 143 of the General
Corporations Law, the members of the Board of Directors may adopt valid
resolutions without a formal meeting, provided that such resolutions, which
shall be made in writing, are signed by all the members of the Board of
Directors. In any case, it shall be the responsibility of the person designated
as Secretary of the Board of Directors to ensure the authenticity of the
signatures, and their preservation in the corporate records.
Article 13. The President of the Board of Directors does not hold voting
power to break any impasse that may occur during any meeting of the Board of
Directors. If the President or the Secretary do not preside over any meeting of
the Board of Directors, their respective duties shall be carried out by a board
member designated by the majority vote of those Directors who are present at the
meeting. All acts of the Board shall be transcribed in a Corporate Minutes Book,
which shall be signed by those who are the President and Secretary of the Board
of Directors, or any other Director attending such a meeting.
Article 14. In order to guarantee the performance of their specific
duties, the Sole Administrator, or as the case may be, the Board of Directors
and their respective Alternates, shall deposit with the company PsN$100.00 (One
Hundred New Pesos) or in the alternative, a surety bond granted in favor of the
company in the same amount. Each member of the Board of Directors, or the Sole
Administrator, as the case may be, may not withdraw the amount granted to the
company as a guaranty until the discharge of their duties shall have been
approved by the Ordinary Stockholders' Meeting. Officers and other officials
shall grant to the company guaranties in the manner prescribed, if any, by the
Ordinary Stockholders' Meeting or the Board of Directors.
OVERSIGHT OF THE COMPANY
Article 15. The oversight of the company shall be entrusted to one or more
Statutory Auditors, as may be determined by the Stockholders in a General
Meeting. An Alternate Statutory Auditor may be designated for each Statutory
Auditor.
Article 16. The Statutory Auditors need not also be Stockholders of the
company; they may be reelected and shall continue to discharge their duties
until their successors take office.
Article 17. The Statutory Auditors shall have the powers and obligations
granted to them by Article 166 of the General Corporations Law.
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Article 18. The Statutory Auditors shall grant to the company the guaranty
amounts mentioned in Article 14 of these estatutos, and may only withdraw such
guaranty amounts if the discharge of their duties shall have been approved by
the Ordinary Stockholders' Meeting.
STOCKHOLDERS' MEETINGS
Article 19. Stockholders' meetings shall take place at the corporate
domicile. Those meetings which shall determine matters pursuant to Article 182
of the General Corporations Law shall be known as Extraordinary Stockholders'
Meetings. All other meetings shall be designated as Ordinary Stockholders'
Meetings.
Article 20. Calls for all Stockholders' Meetings shall be made by the Sole
Administrator or the President or Secretary of the Board of Directors, as the
case may be, in the manner permitted by law, or may be made by the Statutory
Auditor or Auditors. However, any Stockholder or group of Stockholders
representing at least 33% (Thirty-Three Percent) of the capital stock of the
company may, by written demand at any time, require the Sole Administrator or
the President or Secretary of the Board of Directors, or the Statutory Auditors,
to convene a meeting of the Stockholders to pass specifically upon those issues
enumerated in the demand letter. Any Stockholder holding at least one share of
the capital stock of the company shall have the same rights described herein in
the case of an event specified by Article 185 of the General Corporations Law.
If after the demand letter is served by the Stockholder or Stockholders holding
the rights mentioned in this Article 20 on the appropriate person, and such
person does not convene a meeting of the Stockholders within fifteen (15) days
following the date of the demand letter, such demand may be made upon any Civil
or District Judge by any interested Stockholder.
Article 21. Calls for Stockholders' Meetings shall be published in the
Official Gazette of the Federation (Diario Oficial de la Federacion) at least
fifteen (15) days prior to the date fixed for such a meeting. Additionally,
notice of calls shall be sent to Stockholders by certified mail prior to the
date of publication. For those Stockholders who are domiciled outside of Mexico,
notice shall be sent by certified air mail. Calls and notices of calls for
Stockholders' Meetings shall contain an Agenda to be passed upon or discussed at
such a meeting and shall be signed by the person sending such notice.
Article 22. Stockholders' Meetings may be held without the need for prior
publication if the entire capital stock of the company is represented at any
meeting.
Article 23. Only those Stockholders whose names are registered in the
Stock Registry Book of the company shall be admitted to Stockholders' Meetings.
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Article 24. Stockholders may be represented at the meetings by an
attorney-in-fact holding a general or a special power of attorney or by an
attorney-in-fact designated by means of a simple letter of proxy.
Article 25. The acts of the Stockholders' Meetings shall be transcribed in
a Minute Book that shall be signed by those serving as President and Secretary
at the meeting, by the Statutory Auditors who are present at the meeting and by
those Stockholders or their representatives who wish to sign the Minute Book.
Article 26. Stockholders' meetings shall be presided over the Sole
Administrator or the Chairman of the Board of Directors, as the case may be. In
their absence, such meetings shall be presided over by the person designated for
such purposes by the majority of those present at the corresponding meeting. The
Secretary of the Board of Directors shall act as Secretary of Stockholders'
Meetings and, in his absence, the person designated for such purposes by
Stockholders in the corresponding meeting.
Article 27. Ordinary Stockholders' Meetings shall take place at least once
a year within four (4) months following the close of the fiscal year. In
addition to the subjects specified in the Agenda, the Annual Stockholders'
Meeting may specifically discuss, approve and modify the report of the Board of
Directors, including reports on the financial condition of the company as
required under Article 172 of the General Corporations Law; the Stockholders'
shall also receive the reports or accounts of the Statutory Auditors.
Article 28. Ordinary Stockholders' Meetings shall be considered legally
held on a first or subsequent call if Stockholders holding at least 50% (fifty
percent) of all of outstanding voting capital stock are present or represented
at such a meeting.
Article 29. Extraordinary Stockholders' Meetings shall be considered
legally held on a first call if at least 75% (seventy five percent) of the
outstanding voting capital stock of the company are present or represented in
such meetings; in the event of a second or subsequent call, the Extraordinary
Stockholders' Meeting shall be considered legally held if at least 50% (fifty
percent) of the outstanding voting capital stock of the company are present or
represented at such meetings.
Article 30. Resolutions of Ordinary Stockholders' Meetings shall be valid
if adopted by the affirmative vote of Stockholders representing a majority of
the outstanding capital stock of the company are present or represented at the
meeting, and when there shall have been convened a quorum as that term is
defined in Article 28.
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In the event of an Extraordinary Shareholders' Meeting, their
resolutions shall be valid if adopted by the affirmative vote of Stockholders
representing 50% (fifty percent) of the total outstanding voting capital stock
of the company.
Article 31. In accordance with Article 178 of the General Corporations
Law, the Stockholders may adopt valid resolutions without formally convening in
a meeting by written consent signed by all the Stockholders of the company
entitled to vote. In such a case, it shall be the responsibility of the person
designated as the Secretary of the Board of Directors to ensure the authenticity
of the Stockholders' signatures and to keep a record of the same.
FINANCIAL REPORTS
Article 32. Within four (4) months following the close of each fiscal
year, the Sole Administrator or the Board of Directors, as the case may be,
shall formulate the following financial reports respecting the company, which
shall contain all the information necessary to reflect the financial and
operational state of the company, as such reporting is required by Article 172
of the General Corporations Law:
a) The financial state of the company at the date of the close of the
fiscal year (Annual Financial Report).
b) Reports showing explanations and classifications of the operational
state of the company during the preceding fiscal year (Annual Business Report).
c) Reports indicating changes in the financial state of the company during
the course of the preceding fiscal year.
d) Reports indicating any changes in the items that make up the capital
stock of the company during the preceding fiscal year.
e) Any notes or clarifications accompanying any of the preceding reports.
Article 33. All financial and business reports, together with any
documents justifying the findings contained in the reports, shall be delivered
to the Statutory Auditor or Auditors, for their inspection, within one (1) month
of the date fixed for the Annual Shareholders' Meeting.
Article 34. Within fifteen (15) days following the date of receipt of
financial and business reports, the Statutory Auditors shall issue to the Sole
Administrator or to the Board of Directors, as the case may be, a written
opinion for the Stockholders discussing
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the veracity, sufficiency, and reasonability of the information which had been
presented to the Auditor(s) by the Sole Administrator or by the Board of
Directors, as the case may be.
The aforementioned documents shall remain in the possession of the Sole
Administrator or the Board of Directors, as the case may be, but shall be
available to the Stockholders for their review at least fifteen (15) days prior
to the Annual Stockholders' Meeting.
The financial reports, once approved, shall be sent for publication and
deposited in the manner prescribed by Article 177 of the General Corporations
Law.
Article 35. The net profits obtained in each fiscal year shall be applied
as follows:
1) 5% (five per cent) of the net profits shall be set aside for creating
or restoring the Legal Reserve, as the case may be, until it equals one-fifth of
the corporate capital stock.
2) The remainder shall be distributed as determined by the Stockholders in
an Ordinary Meeting.
Article 36. Losses, if there shall have been any, shall be applied against
the Legal Reserve, and if such Reserve is insufficient, against paid capital
stock, with the understanding that the obligations of the Stockholders with
respect to any obligations of the company shall be limited to the extent of the
par value of their respective shares.
DISSOLUTION AND LIQUIDATION
Article 37. The company shall be dissolved in such manner as generally
prescribed by applicable law. Once dissolved, the company shall be liquidated.
The liquidation shall be entrusted in one or more liquidators designated by the
Stockholders' in an Extraordinary Meeting resolving upon dissolution. If no such
designation shall have been made, the dissolution of the company shall be
entrusted in a Civil or District Judge of the corporate domicile at the request
of any Stockholder.
Article 38. In the event that the Stockholders shall not give specific
instructions to the liquidator(s), the purpose of the liquidation shall proceed
upon the following general grounds.
1) Conclusion of all pending business in the manner least prejudicial to
creditors and the Stockholders.
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2) Recovery of all debts and accounts receivable and the payment by the
company of any outstanding debts.
3) The sale of all the assets of the company.
4) Preparation of final balances after liquidation.
5) Distribution of any remaining proceeds of the liquidation, if any,
among the Stockholders in proportion to their participation in the capital stock
of the company.
GENERAL PROVISIONS
Article 39. The promoters of the company, as such may exist, shall hold no
participation in the company upon the date of incorporation.
Article 40. The company is of Mexican nationality. Any foreigner who, at
the time of incorporation or at any time thereafter, acquires a corporate
interest or participation in the company shall be considered by that fact alone
as Mexican with respect to such interest or participation and it shall be
understood that such foreigner agrees not to invoke the protection of its
Government under penalty, in case of failure to comply with such agreement, of
forfeiture of such interest or participation in favor of the Mexican Nation.
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EXHIBIT 5.1
[Letterhead of Debevoise & Plimpton]
October 27, 1998
Jafra Cosmetics International, Inc. Jafra Cosmetics International, S.A. de C.V.
2451 Townsgate Road Consultoria Jafra, S.A. de C.V.
Westlake Village, CA 91361 Distribuidora Venus, S.A. de C.V.
Dirsamex, S.A. de C.V.
Reday, S.A. de C.V.
Qualifax, S.A. de C.V.
CDRJ Investments (Lux) S.A. Jafra Cosmetics S.R.L.
10, rue Antione Jans Blvd. Adolfo Lopez Mateos #515
L 1820 Luxembourg Colonia Tlacopac, 01040
Luxembourg Mexico, D.F.
Registration Statement on Form S-4
of Jafra Cosmetics International, Inc.,
Jafra Cosmetics International, S.A. de C.V.,
CDRJ Investments (Lux) S.A. and the
Other Note Guarantors Referred to therein
(Registration No. 333-62989)
----------------------------------------------
Ladies and Gentlemen:
We have acted as special New York counsel to Jafra Cosmetics
International, Inc., a Delaware corporation (the "U.S. Issuer"), Jafra Cosmetics
International, S.A. de C.V., a sociedad anonima de capital variable organized
under the laws of the United Mexican States ("Jafra S.A." and, together with the
U.S. Issuer, the "Issuers"), CDRJ Investments (Lux) S.A., a Luxembourg societe
anonyme (the "Parent") and the other Note Guarantors (as defined herein) in
connection with the preparation and
<PAGE>
filing with the Securities and Exchange Commission (the "Commission") under the
Securities Act of 1933, as amended (the "Act"), of a Registration Statement on
Form S-4 (as amended to the date hereof, the "Registration Statement"), which
includes a Prospectus (the "Prospectus") relating to the proposed offering of
$100,000,000 aggregate principal amount of the Issuers' 11 3/4% Senior
Subordinated Notes Due 2008 (the "New Notes"), which are to be registered under
the Act pursuant to the Registration Statement, in exchange for an equal
principal amount of the Issuers' outstanding 11 3/4% Senior Subordinated Notes
Due 2008 (the "Existing Notes"). The New Notes are to be issued pursuant to the
Indenture, dated as of April 30, 1998, among the Parent, the Issuers and State
Street Bank and Trust Company, as trustee (the "Trustee"), as supplemented by
the First Supplemental Indenture, dated as of April 30, 1998 (as so
supplemented, the "Indenture"), among the Parent, the Issuers, the Trustee, and
Consultoria Jafra, S.A. de C.V., Distribuidora Venus, S.A. de C.V., Dirsamex,
S.A. de C.V., Reday, S.A. de C.V., Qualifax, S.A. de C.V., and Jafra Cosmetics
S.R.L (collectively, the "Subsidiary Guarantors" and together with the Parent
and the Issuers, the "Note Guarantors"). The obligations of the U.S. Issuer
pursuant to the New Notes are to be guaranteed by the Parent and Jafra S.A and
the obligations of Jafra S.A. pursuant to the New Notes are to be guaranteed by
the Parent, the U.S. Issuer and the Subsidiary Guarantors, pursuant to and as
set forth in the Indenture (such guarantees, collectively, the "Guarantees").
In so acting, we have examined and relied upon the originals, or
copies certified or otherwise identified to our satisfaction, of such corporate
records, documents, certificates and other instruments as in our judgment are
necessary or appropriate to enable us to render the opinion expressed below. In
all such examinations, we have assumed without investigation the legal capacity
of all natural persons executing documents, the genuineness of all signatures on
original or certified copies, the authenticity of all original or certified
copies and the conformity to original or certified documents of all copies
submitted to us as conformed or reproduction copies. We have relied as to
factual matters upon, and have assumed the accuracy of, representations,
statements and certificates of or from public officials and of or from officers
and representatives of the Issuers, the Parent, the Subsidiary Guarantors and
others. With your permission, for purposes of the opinion expressed herein, we
have assumed that (i) the Trustee is and has been duly organized, validly
-
existing and in good standing under the laws of its jurisdiction of
organization, (ii) the Trustee had and has the power and authority to enter into
--
and perform, and has duly authorized, executed and delivered, the Indenture,
(iii) the Indenture is valid, binding and enforceable with respect to the
---
Trustee, (iv) the New Notes will be duly authenticated by the Trustee in the
--
manner provided in the Indenture, (v) insofar as any obligation under the
-
Indenture or the New Notes is to be performed in, or by a party organized under
the laws of, any jurisdiction outside the United States of America, its
performance will not be illegal or ineffective in any such jurisdiction by
virtue of the law of that jurisdiction, and (vi) the opinions expressed in the
--
opinion letters of Ritch, Heather Y Mueller, S.C., special Mexican counsel to
Jafra S.A. and the Subsidiary Guarantors and of Bonn & Schmitt, special
Luxembourg counsel to the Parent, of even date herewith, addressed to each of
you and filed as an exhibit to the Registration Statement, are correct.
Based on the foregoing, and subject to the further qualifications set
forth below, we are of the opinion that:
Upon the execution and issuance of the New Notes by the Issuers and
authentication of the New Notes by the Trustee in accordance with the
Indenture
2
<PAGE>
and delivery of the New Notes against exchange therefor of the Existing
Notes pursuant to the exchange offer described in the Registration
Statement, (i) the New Notes will be valid and binding obligations of the
-
Issuers, enforceable against the Issuers in accordance with their terms,
and (ii) the Guarantee of each Note Guarantor will constitute the valid and
--
binding obligation of such Note Guarantor, enforceable against such Note
Guarantor in accordance with its terms.
The foregoing opinion is limited by and subject to the effects of (i)
-
bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer,
reorganization or moratorium laws or other similar laws relating to or affecting
enforcement of creditors' rights or remedies generally and (ii) general
--
principles of equity (whether such principles are considered in a proceeding at
law or equity), including the discretion of the court before which any
proceeding may be brought, concepts of good faith, reasonableness and fair
dealing, and standards of materiality.
We express no opinion as to the effect of any Federal or state laws
regarding fraudulent transfers or conveyances. We express no opinion as to the
laws of any jurisdiction other than the Federal laws of the United States, the
laws of the State of New York and General Corporation Law of the State of
Delaware, as currently in effect. In particular (and without limiting the
generality of the foregoing) we express no opinion concerning (i) the laws of
-
any country (other than such laws of the United States of America) or as to the
effect of such laws (whether limiting, prohibitive or otherwise) on any of the
rights or obligations of any of the Issuers, the Parent, the Subsidiary
Guarantors and the holders of the New Notes, or any other party to or
beneficiary of any of the Indenture and the New Notes, or (ii) the effect, if
--
any, of any law of any jurisdiction (except the State of New York) in which any
holder of any New Note is located that limits the rate of interest that such
holder may charge or collect. We express no opinion whether a United States
Federal court would accept jurisdiction in any dispute, action, suit or
proceeding arising out of or relating to the New Notes or the Indenture or the
transactions contemplated thereby.
We consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of our name under the heading "Legal
Matters" in the Prospectus. In giving such consent, we do not hereby concede
that we are within the category of persons whose consent is required under
Section 7 of the Act or the rules and regulations of the Commission thereunder.
Very truly yours,
/s/ DEBEVOISE & PLIMPTON
3
<PAGE>
EXHIBIT 5.2
[LETTERHEAD OF RITCH, HEATHER Y MUELLER, S.C.]
October 27, 1998
Jafra Cosmetics International, Inc. Jafra Cosmetics International, S.A. de C.V.
2451 Townsgate Road Consultoria Jafra, S.A. de C.V.
Westlake Village, CA 91361 Distribuidora Venus, S.A. de C.V.
Dirsamex, S.A. de C.V.
Reday, S.A. de C.V.
Qualifax, S.A. de C.V.
CDRJ Investments (Lux) S.A. Jafra Cosmetics, S. de R.L. de C.V.
10, rue Antione Jans Blvd. Adolfo Lopez Mateos #515
L 1820 Luxembourg Colonia Tlacopac, 01040
Luxembourg Mexico, D.F.
Registration Statement on Form S-4
of Jafra Cosmetics International, Inc.,
Jafra Cosmetics International, S.A. de C.V.,
CDRJ Investments (Lux) S.A. and the
Subsidiary Guarantors referred herein
(Registration No. 333-62989)
--------------------------------------------
Ladies and Gentlemen:
We have acted as special Mexican counsel to Jafra Cosmetics International,
S.A. de C.V., a sociedad anonima de capital variable organized under the laws
of the United Mexican States ("Jafra S.A."), and the Subsidiary Guarantors (as
defined below), in connection with the preparation and filing with the
Securities and Exchange Commission (the "Commission") under the Securities Act
of 1933, as amended (the "Act"), of a Registration Statement on Form S-4 (as
amended to the date hereof, the "Registration Statement"), which includes a
Prospectus (the "Prospectus") relating to the proposed offering, severally with
Jafra Cosmetics International, Inc., a Delaware corporation (the "U.S. Issuer"
and together with Jafra S.A., the "Issuers"), of U.S.$100,000,000 aggregate
principal amount of the Issuers' 11 3/4% Senior Subordinated Notes Due 2008 (the
"New Notes"), which are to be registered under the Act pursuant to the
Registration Statement,
<PAGE>
in exchange for an equal principal amount of the Issuers' outstanding 11 3/4%
Senior Subordinated Notes Due 2008 (the "Existing Notes"). The New Notes are to
be issued pursuant to the Indenture, dated as of April 30, 1998, among CDRJ
Investments (Lux) S.A. (the "Parent"), the Issuers and State Street Bank and
Trust Company, as trustee (the "Trustee"), as supplemented by the First
Supplemental Indenture, dated as of April 30, 1998 (as so supplemented, the
"Indenture"), among Consultoria Jafra, S.A. de C.V., Distribuidora Venus, S.A.
de C.V., Dirsamex, S.A. de C.V., Reday, S.A. de C.V., Qualifax, S.A. de C.V.,
Jafra Cosmetics, S. de R.L. de C.V., each of which is a subsidiary of Jafra S.A.
and a company organized under the laws of the United Mexican States
(collectively, the "Subsidiary Guarantors"), the Parent, the Issuers and the
Trustee. The obligations of the U.S. Issuer pursuant to the New Notes are to be
guaranteed by the Parent and Jafra S.A. (such guarantee by Jafra S.A., the
"Jafra S.A. Cross Guarantee") and the obligations of Jafra S.A. pursuant to the
New Notes are to be guaranteed by the Parent, the U.S. Issuer and the Subsidiary
Guarantors, pursuant to and as set forth in the Indenture (such guarantees by
the Subsidiary Guarantors, the "Subsidiary Guarantees").
In so acting, we have relied on originals or copies, certified or
otherwise identified to our satisfaction, of all such records of Jafra S.A. and
the Subsidiary Guarantors and such other instruments and other certificates of
public officials, officers and representatives of Jafra S.A. and the Subsidiary
Guarantors and have made such investigations of law as we have deemed necessary
or appropriate as a basis for the opinion expressed below. In all such
examinations, we have assumed without investigation the legal capacity of all
natural persons executing documents, the genuineness of all signatures on
original or certified copies, the authenticity of all original or certified
copies and the conformity to original or certified documents of all copies
submitted to us as conformed or reproduction copies. We have relied as to
factual matters upon, and have assumed the accuracy of, representations,
statements and certificates of or from public officials and of or from officers
and representatives of the Parent, the Issuers, the Subsidiary Guarantors and
others. We have also assumed that (i) the Trustee and any other parties other
-
than Jafra S.A. and the Subsidiary Guarantors is and has been duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, (ii) the Trustee and any other parties other than Jafra S.A. and
--
the Subsidiary Guarantors has the power and authority to enter into and perform,
and has duly authorized, executed and delivered, the Indenture, (iii) the
---
Indenture is valid, binding and enforceable with respect to the Trustee and any
other parties other than Jafra S.A. and the Subsidiary Guarantors, and (iv) the
--
New Notes will be duly authenticated by the Trustee in the manner provided in
the Indenture.
We have made no independent investigation of the laws of the United States
of America, as a basis for the opinion stated herein and have assumed that there
is nothing in any such laws that affects our opinion.
2
<PAGE>
Based upon the foregoing, and subject to the limitations, qualifications
and assumptions set forth herein, we are of the opinion that:
1. Jafra S.A. has been duly incorporated and is validly existing as a
sociedad anonima de capital variable under the laws of Mexico.
2. Jafra S.A. had and has the corporate power and authority to execute,
deliver and perform its obligations under the Indenture, including but not
limited to its obligations under the Jafra S.A. Cross Guarantee.
3. Each of the Subsidiary Guarantors has been duly incorporated and is
an existing corporation under the laws of Mexico.
4. Each of the Subsidiary Guarantors had and has the corporate power
and authority to execute, deliver and perform its obligations under the
Indenture, including but not limited to its obligations under the Subsidiary
Guarantees.
5. The Indenture has been duly authorized, executed and delivered by
Jafra S.A. and each Subsidiary Guarantor, and the New Notes have been duly
authorized, executed, authenticated, issued and delivered by Jafra S.A.
6. The Jafra S.A. Cross Guarantee and the Subsidiary Guarantees have
been duly authorized, executed, authenticated, issued and delivered, as
appropriate, by Jafra S.A. and each Subsidiary Guarantor, respectively.
7. The choice of law provisions set forth in the New Notes will be
recognized by the courts of Mexico; Jafra S.A. and each Subsidiary Guarantor can
sue and be sued in their own name under the laws of Mexico; under the laws of
Mexico, the submission of Jafra S.A. and the Subsidiary Guarantors to the
jurisdiction of federal and state courts in the Borough of Manhattan in The City
of New York (each a "New York Court" and collectively the "New York Courts") is
legal, valid and binding; any judgment obtained in a New York Court arising out
of or in relation to the obligations of Jafra S.A. and any of the Subsidiary
Guarantors under the New Notes, the Indenture, the Jafra S.A. Cross Guarantee,
the Subsidiary Guarantees or the transactions contemplated thereby will be
recognized in Mexico; provided, however, that any judgment obtained against
-------- -------
Jafra S.A. or any Subsidiary Guarantor in any of the New York Courts in respect
of any sum payable by it under the New Notes, the Indenture, the Jafra S.A.
Cross Guarantee and the Subsidiary Guarantees would be recognized and enforced
by the courts of Mexico without re-examination of the issues pursuant to
Articles 569 and 571 of the Federal Code of Civil
3
<PAGE>
Procedure and Article 1347A of the Commerce Code, which provide, inter alia,
that any judgment rendered outside Mexico may be enforced by Mexican courts,
provided that:
- --------
(i) such judgment is obtained in compliance with legal requirements
of the jurisdiction of the court rendering such judgment and in compliance
with all legal requirements of the New Notes, the Indenture, the Jafra
S.A. Cross Guarantee or the Subsidiary Guarantees, as the case may be;
(ii) such judgment is strictly for the payment of a certain sum of
money and has been rendered in an in personam action as opposed to an in
----------- --
rem action;
---
(iii) service of process is made personally on Jafra S.A. or on the
Subsidiary Guarantors or on a duly appointed process agent;
(iv) such judgment does not contravene Mexican law, public policy of
Mexico, international treaties or agreements binding upon Mexico or
generally accepted principles of international law;
(v) the applicable procedural requirements under the laws of Mexico
with respect to the enforcement of foreign judgments (including the
issuance of letters rogatory by the competent authority of such
jurisdiction requesting enforcement of such judgment and the certification
of such judgment as authentic by the corresponding authorities of such
jurisdiction in accordance with the laws thereof) are complied with;
(vi) the action in respect of which such judgment is rendered is not
the subject matter of a lawsuit among the same parties, pending before a
Mexican court; and
(vii) the courts of such jurisdiction recognize the principles of
reciprocity in connection with the enforcement of Mexican judgments in
such jurisdiction.
8. To ensure the legality, validity, enforceability or admissibility into
evidence of the Indenture, the New Notes, the Jafra S.A. Cross Guarantee or the
Subsidiary Guarantees, it is not necessary that any of them or any other
document be filed, registered or recorded with, or executed or notarized before,
any court or other authority in Mexico, or that any registration charge or stamp
tax paid on or in respect of the Indenture, the New Notes, the Jafra S.A. Cross
Guarantee or the Subsidiary Guarantees, or any other documents.
4
<PAGE>
9. The Indenture, the New Notes, the Jafra S.A. Cross Guarantee and the
Subsidiary Guarantees are in proper legal form under the laws of Mexico for the
enforcement thereof against Jafra S.A. and the Subsidiary Guarantors under the
laws of Mexico.
The foregoing opinion is subject to the following qualifications:
(a) enforcement of the Indenture, the New Notes, the Jafra S.A. Cross
Guarantee and the Subsidiary Guarantees may be limited by bankruptcy,
insolvency, suspension of payments, liquidation, reorganization,
moratorium and other laws of general application relating to or affecting
the rights of creditors generally;
(b) in any proceedings brought to the courts of Mexico for the
enforcement of the Indenture, the New Notes, the Jafra S.A. Cross
Guarantee and the Subsidiary Guarantees, or any judgment related thereto
obtained in a foreign jurisdiction against Jafra, S.A. or the Subsidiary
Guarantors, a Mexican court would apply Mexican procedural law in such
proceedings;
(c) in the event that proceedings are brought in Mexico seeking
performance of Jafra S.A.'s or any of the Subsidiary Guarantors'
obligations in Mexico, Jafra S.A. and the Subsidiary Guarantors may
discharge their respective obligations by paying any sums due in a
currency other than Mexican currency, in Mexican currency at the rate of
exchange prevailing in Mexico on the date when payment is made and,
therefore, any currency indemnity provisions of the Indenture may not be
enforceable under the laws of Mexico;
(d) provisions of the Indenture granting discretionary authority to the
Trustee cannot be exercised in a manner inconsistent with relevant facts
nor defeat any requirements from a competent authority to produce
satisfactory evidence as to the basis of any determination; in addition,
under Mexican law, Jafra S.A. and the Subsidiary Guarantors will have the
right to contest in court any notice or certificate of the Trustee
purporting to be conclusive and binding;
(e) in the event that any legal proceedings are brought to the courts
of Mexico, a Spanish translation of the documents required in such
proceedings prepared by a court-approved translator would have to be
approved by the court after the defendant had been given an opportunity to
be heard with respect to the accuracy of the translation, and proceedings
would thereafter be based upon the translated documents;
5
<PAGE>
(f) under the laws of Mexico labor claims, claims of tax authorities
for unpaid taxes, Social Security quotas and Workers' Housing Fund quotas,
will have priority over claims of holders of the New Notes; and
(g) with respect to provisions contained in the Indenture in connection
with service of process, it should be noted that service of process by
mail does not constitute personal service of process under Mexican law
and, since such service is considered to be a basic procedural
requirement, if for purposes of proceedings outside Mexico service of
process is made by mail, a final judgment based on such process would not
be enforced by the courts of Mexico.
We express no opinion as to any laws other than the laws of Mexico.
We consent to the filing of this opinion as an exhibit to the Registration
Statement and to the use of our name under the heading "Legal Matters" in the
Prospectus. In giving such consent, we do not hereby concede that we are within
the category of persons whose consent is required under Section 7 of the Act or
the rules and regulations of the Commission thereunder.
Very truly yours,
RITCH, HEATHER Y MUELLER, S.C.
/s/ James E. Ritch
----------------------------------
By: James E. Ritch Grande Ampudia,
a partner
6
<PAGE>
EXHIBIT 5.3
[Letterhead of Bonn & Schmitt]
October 27, 1998
CDRJ Investments (Lux) S.A. Jafra Cosmetics International, S.A. de C.V.
10, rue Antoine Jans Consultoria Jafra, S.A. de C.V.
L 1820 Luxembourg Distribuidora Venus, S.A. de C.V.
Luxembourg Dirsamex, S.A. de C.V.
Reday, S.A. de C.V.
Qualifax, S.A. de C.V.
Jafra Cosmetics International, Inc. Jafra Cosmetics S.R.L.
2451 Townsgate Road Blvd. Adolfo Lopez Mateos #515
Westlake Village, CA 91361 Colonia Tlacopac, 01040
Mexico, D.F.
Registration Statement on Form S-4
of Jafra Cosmetics International, Inc.,
Jafra Cosmetics International, S.A. de C.V.,
CDRJ Investments (Lux) S.A. and the
Subsidiary Guarantors referred herein
(Registration No. 333-62989)
--------------------------------------------
Ladies and Gentlemen:
We have acted as special Luxembourg counsel to CDRJ Investments (Lux)
S.A., a Luxembourg societe anonyme (the "Parent") in connection with the
preparation and filing with the Securities and Exchange Commission (the
"Commission") under the Securities Act of 1933, as amended (the "Act"), of a
Registration Statement on Form S-4 (as amended to the date hereof, the
"Registration Statement"), which includes a Prospectus (the "Prospectus")
relating to the proposed offering by Jafra Cosmetics International, Inc., a
Delaware corporation (the "U.S. Issuer") and Jafra Cosmetics S.A. de C.V., a
sociedad anonima de capital variable organized under the laws of the United
Mexican States ("Jafra S.A." and together with the U.S. Issuer, the "Issuers"),
of U.S.$100,000,000 aggregate principal amount of the Issuers' 11 3/4% Senior
Subordinated Notes Due 2008 (the "New Notes"), which are to be registered under
the Act pursuant to the Registration Statement, in exchange for an equal
principal amount of the Issuers' outstanding 11 3/4% Senior Subordinated Notes
Due 2008 (the "Existing Notes"). The New
<PAGE>
Notes are to be issued pursuant to the Indenture, dated as of April 30, 1998,
among the Parent, the Issuers and State Street Bank and Trust Company, as
trustee (the "Trustee"), as supplemented by the First Supplemental Indenture,
dated as of April 30, 1998 (as so supplemented, the "Indenture"), among
Consultoria Jafra, S.A. de C.V., Distribuidora Venus, S.A. de C.V., Dirsamex,
S.A. de C.V., Reday, S.A. de C.V., Qualifax, S.A. de C.V., Jafra Cosmetics
S.R.L, each of which is a subsidiary of Jafra S.A. and a company organized under
the laws of the United Mexican States (collectively, the "Subsidiary
Guarantors"), the Parent, the Issuers and the Trustee. The obligations of the
U.S. Issuer pursuant to the New Notes are to be guaranteed by the Parent and
Jafra S.A. and the obligations of Jafra S.A. pursuant to the New Notes are to be
guaranteed by the Parent, the U.S. Issuer and the Subsidiary Guarantors,
pursuant to and as set forth in the Indenture (such guarantees by the Parent,
the "Parent Guarantee," such guarantees by the Issuers, the "Cross Guarantees,"
and such guarantees by the Subsidiary Guarantors, the "Subsidiary Guarantees").
We have examined the following:
1. the Indenture;
2. the Parent Guarantee as set forth in the Indenture;
3. resolutions adopted at a meeting of the Board of Directors of the
Parents held on September 3, 1998;
4. the articles of incorporation of the Parent; and
5. such other documents as we have deemed necessary.
The Indenture, the Parent Guarantee and the New Notes are together
referred to as the "Issue Documents."
For the purposes of this opinion, we have also assumed:
(a) that the execution, delivery and performance of the Issue Documents
are within the corporate power and authority of the parties thereto, other than
Parent, including but not limited to the parties' obligations under the Cross
Guarantees and the Subsidiary Guarantees, as the case may be, and that these
Issue Documents have been duly authorized, executed and delivered by, and are
binding upon, all such parties, other than Parent;
2
<PAGE>
(b) that the New Notes will be duly authenticated by the Trustee in the
manner provided in the Indenture;
(c) the genuineness of all signatures on all documents and the
completeness, and the conformity to original documents, of all copies submitted
to us;
(d) that all authorizations and consents of any public authority of any
country other than the Grand-Duchy of Luxembourg which may be required in
connection with the execution, delivery and performance of the Indenture and the
issuance of the New Notes have been or will be obtained;
(e) that the documents are substantially in the form of the drafts or
copies we have examined; and
(f) the legality, validity and enforceability of the Issue Documents, the
Cross Guarantees, and the Subsidiary Guarantees under their governing laws
(other than the laws of Luxembourg).
On the basis of the foregoing and subject to the limitations,
qualifications and assumptions set forth herein, we are, as of the date hereof,
of the opinion that:
(i) Parent has been duly incorporated and is validly existing under
the laws of Luxembourg;
(ii) Parent had and has the corporate power and authority to execute,
deliver and perform its obligations under the Issue Documents;
(iii) The Indenture has been duly authorized, executed and delivered by
the Parent;
(iv) The choice of law provisions set forth in the Issue Documents
will be recognized by the courts of Luxembourg; Parent may sue or be sued in its
own name under the laws of Luxembourg; under the laws of Luxembourg the
submission of Parent to the jurisdiction of federal and state courts in the
Borough of Manhattan in the City of New York (each a "New York Court" and
collectively the "New York Courts") is legal, valid and binding; any judgment
obtained in a New York Court arising out of or in relation to the obligations of
Parent under the Issue Documents will be recognized in Luxembourg, subject to
and in accordance with applicable rule on enforcement of foreign judgment; and
3
<PAGE>
(v) No Luxembourg governmental authorization is required to effect
payments of principal, premium, if any, and interest (including any Additional
Amounts due and payable thereon) on the New Notes or any payment in respect of
the Parent Guarantee.
The opinions expressed herein are subject to the following qualifications:
(a) the obligations of Parent under the Issue Documents and the
enforceability of the Issue Documents will be subject to and may be limited by
any applicable bankruptcy, liquidation, insolvency or other laws of similar
effect relating to or affecting the enforcement of creditors' rights generally;
(b) the enforcement of the Indenture and the rights and obligations of the
parties thereto will be subject to the general statutory principles of
Luxembourg law and no opinion is given herein as to the availability of any
specific performance remedy, other than monetary damages, for the enforcement of
any obligation of Parent and this opinion should not be taken to imply that a
Luxembourg Court will necessarily grant any remedy, in particular, orders for
specific performance and injunctions will not be available;
(c) where any obligations are to be performed or observed or are based
upon a matter arising in a jurisdiction outside Luxembourg they may not be
enforceable under Luxembourg law if and to the extent such performance or
observance would be unlawful, unenforceable, or contrary to public policy under
the laws of such jurisdiction;
(d) a Luxembourg Court may refuse to give effect to a purported
contractual obligation to pay costs imposed upon another party in respect of the
costs of any unsuccessful litigation brought against that party before a
Luxembourg Court and a Luxembourg Court may not award by way of costs all of the
expenditure incurred by a successful litigant in proceedings brought before the
Court;
(e) whilst, in the event of any proceedings being brought in a Luxembourg
Court in respect of a monetary obligation expressed to be payable in a currency
other than Luxembourg francs, a Luxembourg Court would have power to give
judgment expressed as an order to pay a currency other than Luxembourg francs,
enforcement of the judgment against the Parent in Luxembourg would be available
only in Luxembourg francs and for such purposes all claims or debts are
converted into Luxembourg francs normally at the prevailing exchange rate on the
date of payment;
(f) claims may become barred under the statutory limitation period rules
or may be or become subject to defenses of set-off or counterclaims;
4
<PAGE>
(g) any determination or certificates made or given pursuant to the
provisions of the Indenture which provide for such determination or certificate
to be final, conclusive or binding might not necessarily be held under
Luxembourg law to be final, conclusive or binding;
(h) we express no opinion as to whether any provision in the Indenture
conferring a right of set-off or similar right would be effective against a
bankruptcy receiver, liquidator or a creditor;
(i) a contractual provision conferring or imposing a remedy, an obligation
or penalty consequent upon default may not be fully enforceable if it were
construed by a Luxembourg Court as constituting an excessive pecuniary remedy;
(j) as regards jurisdiction, a Luxembourg Court may stay proceedings if
concurrent proceedings based on the same grounds and between the same parties
have been brought previously before another Court; and
(k) a contractual provision allowing the service of process against the
Parent to a service agent would not preclude the Luxembourg statutory provisions
allowing the valid servicing of process against the Parent at its domicile.
We consent to the filing of this opinion as an exhibit to the Registration
Statement and to the use of our name under the heading "Legal Matters" in the
Prospectus. In giving such consent, we do not hereby concede that we are within
the category of persons whose consent is required under Section 7 of the Act or
the rules and regulations of the Commission thereunder.
This opinion is strictly limited to the matters of Luxembourg law stated
herein and is not to be read as extending by implication to any other matters.
This opinion is governed by Luxembourg law and the Luxembourg Courts have
exclusive jurisdiction in respect thereto.
Yours faithfully,
/s/ Bonn & Schmitt
BONN & SCHMITT
5
<PAGE>
EXHIBIT 10.4
AMENDED AND RESTATED
JAFRA COSMETICS INTERNATIONAL, INC.
STOCK INCENTIVE PLAN
-----------------------------------
Section 1. Purpose
-------------------
The purpose of this Amended and Restated Jafra Cosmetics
International, Inc. Stock Incentive Plan is to foster and promote the long-term
financial success of the Company and the Subsidiaries and to increase materially
stockholder value by (a) motivating superior performance by participants in the
-
Plan, (b) providing participants in the Plan with an ownership interest in CDRJ
-
Investments (Lux) S.A., a Luxembourg societe anoyme and of which the Company is
an indirect wholly owned subsidiary, and (c) enabling the Company and the
-
Subsidiaries to attract and retain the services of an outstanding management
team upon whose judgment, interest and special effort the successful conduct of
its operations is largely dependent.
Section 2. Definitions
-----------------------
2.1 Definitions. Whenever used herein, the following terms shall
-----------
have the respective meanings set forth below:
(a) "Affiliate" means, with respect to any person, any other person
controlled by, controlling or under common control with such person.
(b) "Acquisition Agreement" means the Acquisition Agreement, dated as
of January 26, 1998, by and among CDRJ Holding Company, a Cayman Islands
exempt company, Holding, The Gillette Company and the other parties
thereto, as amended.
(c) "Applicable Share Valuation" means, as of any date of
determination, the annual valuation of the Common Stock performed as of the
last day of the last Fiscal Year ending prior to such date of determination
by an independent valuation firm chosen by the Board, except that, in the
case of a date of determination occurring during the fourth fiscal quarter
of any Fiscal Year beginning with the fourth quarter of the 1998 Fiscal
Year, the term "Applicable Share Valuation" shall mean the annual valuation
of the Common Stock performed as of the last day of such fourth fiscal
quarter by an independent valuation firm chosen by the Holding Board. Such
annual valuations shall be performed as promptly as practicable following
the end of each Fiscal Year, beginning with the 1998 Fiscal Year.
(d) "Award Agreement" means the agreement evidencing the grant of any
Incentive Award under the Plan, including a Subscription Agreement and an
Option Agreement.
(e) "Board" means the Board of Directors of the Company.
<PAGE>
(f) "CD&R Fund" means the Clayton, Dubilier & Rice Fund V Limited
Partnership, a Cayman Islands exempted limited partnership, and any
successor investment vehicle managed by Clayton, Dubilier & Rice, Inc.
(g) "Cause" shall mean (i) the continued and willful failure of the
-
Participant substantially to perform the duties of his or her employment
for any member of the CDRJ Group (other than any such failure due to the
Participant's physical or mental illness) after a demand for substantial
performance has been delivered in writing to the Participant by the
executive to whom the Participant reports or by the Board, which demand
identifies the manner in which such executive or the Board, as the case may
be, believes that the Participant has not substantially performed such
duties, (ii) the Participant's engaging in willful and serious misconduct
--
that has caused or is reasonably expected to result in material injury to
Holding or any of its Subsidiaries or Affiliates, (iii) the Participant's
---
conviction of, or entering a plea of guilty or nolo contendere to, a crime
---- ----------
that constitutes a felony or (iv) the material breach by the Participant of
--
any of his or her obligations hereunder or under any other written
agreement or covenant with Holding or any of its Subsidiaries or
Affiliates; provided that in the event that the Participant is employed by
--------
Holding or any of its Subsidiaries or Affiliates under an effective
employment agreement on the date such Participant's employment thereunder
is terminated and such employment agreement contains a different definition
of Cause, the definition of Cause contained in such employment agreement
shall be substituted for the definition set forth above for all purposes
hereunder.
(h) "CDRJ Group" means Holding and its subsidiaries.
(i) "CDRJ North Atlantic" means CDRJ North Atlantic (Lux) Sarl, a
wholly-owned subsidiary of Holding, and of which the Company is a wholly-
owned subsidiary.
(j) "Change in Control" means, with respect to Holding, CDRJ North
Atlantic or the Company, the first to occur after the date hereof of the
following events:
(i) the acquisition by any person, entity or "group" (as defined
in section 13(d) of the Exchange Act) (other than (x) any member of the
-
CDRJ Group, (y) any employee benefit plan of any member of the CDRJ
-
Group, or (z) the CD&R Fund or any Affiliate of the CD&R Fund)
-
through one transaction or a series of related transactions of 50% or
more of the combined voting power of the then outstanding voting
securities of Holding, CDRJ North Atlantic or the Company, as the case
may be;
(ii) the merger or consolidation of Holding, CDRJ North Atlantic
or the Company as a result of which persons who were stockholders of
Holding, CDRJ North Atlantic or the Company, as the case may be,
immediately prior to such merger or consolidation, do not, immediately
thereafter, own, directly or indirectly, more than 50% of the
2
<PAGE>
combined voting power entitled to vote generally in the election of
directors of the merged or consolidated company;
(iii) the liquidation or dissolution of Holding, CDRJ North
Atlantic or the Company (other than a dissolution occurring upon a
merger or consolidation thereof) other than a liquidation of CDRJ
North Atlantic or the Company, as the case may be, into Holding or a
Subsidiary thereof or a liquidation or dissolution that is incident to
a Reorganization; and
(iv) the sale, transfer or other disposition of all or
substantially all of the assets of Holding, CDRJ North Atlantic or the
Company through one transaction or a series of related transactions to
one or more persons or entities that are not, immediately prior to
such sale, transfer or other disposition, Affiliates of Holding or the
CD&R Fund.
(k) "Change in Control Price" means the price per share of Common
Stock paid in conjunction with any transaction resulting in a Change in
Control (as determined in good faith by the Holding Board if any part of
such price is payable other than in cash).
(l) "Committee" means the Compensation Committee of the Board (or
such other committee of the Board which shall have jurisdiction over the
compensation of officers).
(m) "Common Stock" means the Class A voting shares, par value $2.00
per share, of Holding.
(n) "Company" means Jafra Cosmetics International, Inc., a Delaware
corporation.
(o) "Disability" means a physical or mental disability or infirmity
that prevents the performance of the Participant's employment-related
duties lasting (or likely to last, based on competent medical evidence
presented to the Board) for a period of six months or longer. The Board's
reasoned and good faith judgment as to Disability shall be final and shall
be based on such competent medical evidence as shall be presented to it by
the Participant or by any physician or group of physicians or other
competent medical expert employed by the Participant or Holding to advise
the Board; provided that in the event that the Participant is employed by
--------
Holding or any of its Subsidiaries or Affiliates under an effective
employment agreement on the date such Participant's employment thereunder
is terminated and such employment agreement contains a different definition
of Disability, the definition of Disability contained in such employment
agreement shall be substituted for the definition set forth above for all
purposes hereunder.
(p) "EBITDA", for any period, shall, unless otherwise provided in an
Award Agreement, have the meaning assigned to such term in the Credit
Agreement, dated as of April 30, 1998, among the Company, the other
borrowers party thereto, Credit Suisse First Boston, as administrative
agent, and the lenders party thereto from time to time, as the same may be
amended from time to time.
3
<PAGE>
(q) "Effective Date" means April 30, 1998.
(r) "Employee" means any executive officer or other key management
employee of the Company or a Subsidiary.
(s) "Extraordinary Termination" means, unless otherwise provided in
the Option Agreement, a termination of a Participant's employment with a
member of the CDRJ Group by reason of the Participant's death, Disability
or Retirement.
(t) "Fair Market Value"shall mean, as of any date, the fair market
value on such date of a share of Common Stock as determined in good faith
by the Holding Board. In making a determination of Fair Market Value, the
Holding Board shall give due consideration to such factors as it deems
appropriate, including, without limitation, the earnings and certain other
financial and operating information of Holding and its Subsidiaries in
recent periods, the potential value of Holding and its Subsidiaries as a
whole, the future prospects of Holding and its Subsidiaries and the
industries in which they compete, the history and management of Holding and
its Subsidiaries, the general condition of the securities markets, the fair
market value of securities of companies engaged in businesses similar to
those of Holding and its Subsidiaries and the Applicable Share Valuation.
The determination of Fair Market Value will not give effect to any
restrictions on transfer of the shares of Common Stock or the fact that
such Common Stock would represent a minority interest in Holding.
Notwithstanding the foregoing, following a Public Offering, Fair Market
Value shall mean the average of the high and low trading prices for a share
of Common Stock on the primary national exchange (including Nasdaq) on
which the Common Stock is then traded on the trading day immediately
preceding the date as of which such Fair Market Value is determined.
(u) "Holding" means CDRJ Investments (Lux) S.A., a Luxembourg societe
anoyme, and any successor thereto.
(v) "Holding Board" means the Board of Directors of Holding.
(w) "Incentive Award" means an award of Options under the Plan or the
right to purchase Common Stock pursuant to Article VIII of the Plan.
(x) "New Employer" means a Participant's employer, or the parent or a
subsidiary of such employer, immediately following a Change in Control.
(y) "Option" means the right granted to a Participant under the Plan
to purchase a stated number of shares of Common Stock from the Company at a
stated price, not less than Fair Market Value on the date of grant, for a
specified period of time.
(z) "Option Agreement" means a management stock option agreement
between the Company and the Participant setting forth the terms and
conditions of any Options granted hereunder, which agreement shall, unless
the Board otherwise determines, be substantially in the form attached
hereto as Exhibit A.
4
<PAGE>
(aa) "Participant" means any Employee designated by the Board to
participate in the Plan.
(bb) "Performance Option" means an Option granted pursuant to the
Plan which vests in accordance with the provisions of Section 6.3(b) based
upon the financial performance of Holding and/or the Subsidiaries.
(cc) "Plan" means this Amended and Restated Jafra Cosmetics
International Stock Incentive Plan, as the same may be amended from time to
time.
(dd) "Public Offering" means the first day as of which sales of
Common Stock are made to the public in the United States pursuant to an
underwritten public offering of the Common Stock led by one or more
underwriters at least one of which is an underwriter of nationally
recognized standing.
(ee) "Registration and Participation Agreement" means the Registration
and Participation Agreement, dated as of April 30, 1998, among Holding and
certain stockholders of Holding, as the same may be amended from time to
time.
(ff) "Reorganization" means a reincorporation of Holding in another
jurisdiction, whether through a merger with or into another entity, a
transfer of substantially all of its assets to another entity or other
transactions having a similar result.
(gg) "Retirement" means a Participant's retirement from active
employment with Holding and the Subsidiaries at or after age 65.
(hh) "Service Option" means an Option granted pursuant to the Plan
which vests in accordance with the provisions of Section 6.3(a) based upon
a Participant's completion of service.
(ii) "Subscription Agreement" means the management stock subscription
agreement entered into by Holding and a Participant setting forth the terms
and conditions of any purchase of Common Stock by such Participant under
the Plan which agreement shall be substantially in the form attached hereto
as Exhibit B, unless the Board, in consultation with the Holding Board,
determines otherwise.
(jj) "Subsidiary" means any corporation or other person, a majority
of whose outstanding voting securities or other equity interests is owned,
directly or indirectly, by Holding.
2.2 Gender and Number. Except when otherwise indicated by the
-----------------
context, words in the masculine gender used in the Plan shall include the
feminine gender, the singular shall include the plural, and the plural shall
include the singular.
5
<PAGE>
Section 3. Eligibility and Participation
-----------------------------------------
Participants in the Plan shall be those Employees selected by the
Board, in consultation with the Holding Board, to participate in the Plan from
time to time. The selection of an Employee as a Participant shall neither
entitle such Employee to nor disqualify such Employee from participation in any
other award or incentive plan.
Section 4. Powers of the Board
-------------------------------
4.1 Power to Grant and Establish Terms of Awards. The Board shall,
--------------------------------------------
subject to the terms of the Plan, determine the Participants to whom Incentive
Awards shall be granted and the terms and conditions of such Incentive Awards,
provided that nothing in the Plan shall limit the right of members of the Board
who are Employees to receive Incentive Awards hereunder.
4.2 Administration. The Board shall be responsible for the
--------------
administration of the Plan. Any authority exercised by the Board under the Plan
shall be exercised by the Board in its sole discretion. The Board, by majority
action thereof, is authorized to prescribe, amend and rescind rules and
regulations relating to the administration of the Plan, to provide for
conditions and assurances deemed necessary or advisable to protect the interests
of Holding and the Subsidiaries, and to make all other determinations necessary
or advisable for the administration and interpretation of the Plan or to carry
out its provisions and purposes. Determinations, interpretations or other
actions made or taken by the Board pursuant to the provisions of the Plan shall
be final, binding and conclusive for all purposes and upon all persons.
4.3 Delegation by the Board. Except as provided in an Option
-----------------------
Agreement, all of the powers, duties and responsibilities of the Board specified
in the Plan may, to the full extent permitted by applicable law, be exercised
and performed by the Committee or any other duly constituted committee of the
Board, in any such case, to the extent authorized by the Board to exercise and
perform such powers, duties and responsibilities.
Section 5. Stock Subject to Plan
---------------------------------
5.1 Number. Subject to the provisions of Section 5.3, the maximum
------
number shares of Common Stock subject to Incentive Awards under the Plan
(including shares that become available for grant pursuant to Section 5.2) may
not exceed, in the aggregate, 156,423 shares (the "Total Authorized Shares").
Up to one-third of the Total Authorized Shares may be purchased by Participants
pursuant to Section 7 and up to two-thirds of the Total Authorized Shares may be
subject to Options granted pursuant to Section 6. The shares to be delivered
under the Plan (other than shares purchased by the Participant directly from
Holding pursuant to Section 7) shall be purchased by the Company from Holding
pursuant to the Warrant Agreement, dated as of April 30, 1998, as amended
between the Company and Holding (the "Holding Warrant"), which shares may
consist, in whole or in part, of Common Stock held in treasury or authorized but
unissued shares of Common Stock, not reserved for any other purpose.
6
<PAGE>
5.2 Canceled, Terminated or Forfeited Awards. Any shares of Common
----------------------------------------
Stock subject to any portion of an Incentive Award which for any reason expires,
or is canceled, terminated, forfeited or otherwise settled without the issuance
of such shares of Common Stock, shall again be available for award under the
Plan, subject to the maximum limitation specified in Section 5.1.
5.3 Adjustment in Capitalization. The number and class of Incentive
----------------------------
Awards (and the number of shares of Common Stock available for issuance upon
exercise or settlement of such Incentive Awards) granted under the Plan, and the
number, class and exercise price of any outstanding Options, may be adjusted by
the Board, in consultation with the Holding Board, in its sole discretion, if it
shall deem such an adjustment to be necessary or appropriate to reflect any
Common Stock dividend, stock split or share combination or any recapitalization,
merger, consolidation, exchange of shares, liquidation, dissolution or
Reorganization of Holding.
Section 6. Terms of Options
----------------------------
6.1 Grant of Options. Options may be granted to Participants at such
----------------
time or times as shall be determined by the Board. Each Option granted to a
Participant shall be evidenced by an Option Agreement that shall specify the
exercise price at which a share of Common Stock may be purchased pursuant to
such Option, the duration of such Option and such other terms and conditions
consistent with the Plan as the Board shall determine, including customary
representations, warranties and covenants with respect to securities law
matters. Unless otherwise determined by the Board, such Option Agreement shall
also state that the holder thereof is entitled to the benefits of and shall be
bound by the obligations set forth in the Registration and Participation
Agreement, dated as of April 30, 1998 and as the same may be amended from time
to time, among Holding and certain stockholders of Holding, to the extent set
forth therein.
6.2 Option Price. The exercise price per share of Common Stock to be
------------
purchased upon exercise of an Option shall be determined by the Board but shall
not be less than the Fair Market Value on the date the option is granted.
6.3 Exercise of Options.
-------------------
(a) Service Options. Unless otherwise provided by the Board in the
---------------
Option Agreement evidencing such Award, subject to the continuous
employment of the Participant with a member of the CDRJ Group, Service
Options granted to a Participant shall become vested in three equal annual
installments on each of the first three anniversaries of the date of grant.
(b) Performance Options. Unless otherwise provided by the Board in
-------------------
the Option Agreement evidencing such Award, subject to Section 9.1 and 10,
no portion of any Performance Options shall become vested unless and until
Holding shall have achieved the annual or cumulative EBITDA target
specified in the Option Agreement evidencing such Performance Options and
provided the Participant is in the continuous employment of a member of the
CDRJ Group from the date of grant to the date such target is achieved.
Notwithstanding the
7
<PAGE>
foregoing provisions of this paragraph (b), subject to the continuous
employment of the Participant with a member of the CDRJ Group, Performance
Options shall become vested in full, nine years following the date of
grant, regardless of whether the applicable EBITDA target shall have been
achieved.
(c) Conditions. Notwithstanding any other provision herein, the
----------
Board may accelerate the vesting or exercisability of any Option, all
Options or any class of Options, at any time and from time to time. On or
before the date upon which any Employee will exercise any exercisable
Option, Holding and such Employee shall enter into a Subscription Agreement
with respect to the Common Stock to be purchased upon exercise of such
Option. Notwithstanding any other provision of the Plan, no Option shall
be exercisable for more than 10 years after the date on which it is
granted.
6.4 Payment. The Board shall establish procedures governing the
-------
exercise of Options, which procedures shall generally require that written
notice of the exercise thereof be given and that the exercise price thereof be
paid in full in cash or cash equivalents, including by personal check, at the
time of exercise. The exercise price of any Options exercised at any time
following a Public Offering may be paid in full or in part in the form of shares
of Common Stock that have been owned by the Participant for at least six months,
based on the Fair Market Value of such shares of Common Stock on the date of
exercise, subject to such rules and procedures as may be adopted by the Board
and, if the Board deems it necessary or appropriate, subject to shareholder
approval of the Plan. Subject to Section 6.3, as soon as practicable after
receipt of a written exercise notice and payment in full of the exercise price
of any Options (including any taxes or additional amounts required to be paid by
a Participant in connection with the exercise of an Option as specified in the
Option Agreement), Holding shall deliver to the Participant a certificate or
certificates representing the shares of Common Stock acquired upon the exercise
thereof, bearing appropriate legends if applicable. Notwithstanding the
foregoing, the Company, in consultation with the Holding Board, in lieu of
delivering the shares to be acquired on exercise of an Option may return to the
Participant the exercise price tendered for such shares and pay to the
Participant an additional amount equal to the excess of (i) the Fair Market
-
Value, as of the relevant date of determination, of such shares over (ii) the
--
exercise price therefor.
Section 7. Terms of Offers to Purchase Common Stock
-----------------------------------------------------
7.1. Offers to Purchase Common Stock. Offers to purchase Common
-------------------------------
Stock from Holding may be made to Participants at such time or times as shall be
determined by the Board, in consultation with the Holding Board. Each purchase
of Common Stock by a Participant shall be made pursuant to a Subscription
Agreement that shall include customary representations, warranties, covenants
and other terms and conditions with respect to securities law matters and such
other terms and conditions as the Holding Board shall determine. Unless
otherwise determined by the Holding Board, such Subscription Agreement shall
also state that in respect of any shares of Common Stock purchased by the
Participant pursuant to such Subscription Agreement (i) prior to a Public
-
Offering, such shares shall be subject to certain rights of first refusal and
repurchase rights of Holding and the CD&R Fund and (ii) such Participant shall
--
be
8
<PAGE>
entitled to certain of the benefits set forth in the Registration and
Participation Agreement and shall be bound by the obligations set forth in such
Registration and Participation Agreement, in each case, to the extent set forth
in the Subscription Agreement evidencing the purchase of such Common Stock.
7.2. Purchase Price. The purchase price per share of Common Stock to
--------------
be purchased under the Plan shall be determined by the Holding Board.
Section 8. Termination of Employment
-------------------------------------
8.1. Extraordinary Termination. Unless otherwise provided in the
-------------------------
Option Agreement or otherwise determined by the Board, in the event that a
Participant's employment with a member of the CDRJ Group terminates by reason of
an Extraordinary Termination, any Options then held by such Participant that
have become vested on or prior to the date of such termination shall, subject to
Section 8.4, remain exercisable solely until the first to occur of (x) the six
-
month anniversary of the date of the Participant's termination of employment or
(y) the expiration of the term of any such Option. Unless otherwise provided in
-
the Option Agreement or otherwise determined by the Board, any Options held by
the Participant that are not vested Options as of the date of the Participant's
termination of employment shall terminate and be canceled immediately upon such
termination, and any vested Options that are not exercised within the period
described in the preceding sentence shall terminate and be canceled upon the
expiration of such period.
8.2. Termination for Cause. Unless otherwise provided in the Award
---------------------
Agreement or otherwise determined by the Board, in the event a Participant's
employment with a member of the CDRJ Group is terminated by such member for
Cause, any Options held by such Participant (whether or not then vested or
exercisable) shall terminate and be canceled immediately upon such termination
of employment and any Common Stock purchased by the Participant may be
repurchased for a purchase price calculated in accordance with the terms of the
Subscription Agreement.
8.3. Other Termination of Employment. Unless otherwise determined by
-------------------------------
the Board at the time of grant, the Board shall provide in the Option Agreement
evidencing options granted hereunder that, in the event that a Participant's
employment with a member of the CDRJ Group terminates for any reason other than
(i) an Extraordinary Termination or (ii) for Cause, any Options then held by
- --
such Participant that have become vested on or prior to the date of such
termination shall, subject to Section 8.4, remain exercisable until the first to
occur of (x) the 30th day after the expiration of the period, if any, specified
-
in such Participant's Option Agreement during which Holding or the CD&R Fund has
a right to purchase such Options from the Participant or (y) the expiration of
-
the term of such Option. Any Options held by the Participant that are not
vested Options as of the date of the Participant's termination of employment
shall terminate and be canceled immediately upon such termination, and any
vested Options that are not exercised within the period described in the
preceding sentence shall terminate and be canceled upon the expiration of such
period.
9
<PAGE>
8.4. Certain Rights upon Termination of Employment Prior to Public
-------------------------------------------------------------
Offering. Unless otherwise determined by the Board at the time of grant, the
- --------
Board shall provide in each Award Agreement evidencing Incentive Awards granted
hereunder that, upon a termination of a Participant's employment with a member
of the CDRJ Group prior to a Public Offering for any reason, (a) Holding and the
-
CD&R Fund and its Affiliates shall have successive rights to repurchase for cash
any vested Options or shares of Common Stock then held by the Participant for a
repurchase price equal to the Fair Market Value, reduced in the case of any
Options by the exercise price per share of Common Stock for such Option and (b)
-
upon an Extraordinary Termination, the Participant shall have the right to
require Holding to repurchase shares of Common Stock then owned by him or her
(provided the Participant has held such shares of Common Stock for at least six
months), for a repurchase price equal to the Fair Market Value, and in each case
upon such additional terms and conditions as are set forth in such Award
Agreement.
Section 9. Change in Control
-----------------------------
9.1. Accelerated Vesting and Payment.
-------------------------------
(a) Service Options and Vested Performance Options. Unless the Board
----------------------------------------------
otherwise determines in the manner set forth in Section 9.2, in the event
of a Change in Control, each outstanding Service Option (regardless of
whether such Option is at such time otherwise exercisable) and each
outstanding Performance Option that has become vested prior to the Change
in Control, without regard to this Section 9.1, shall be canceled in
exchange for a payment in cash of an amount equal to the product of (i) the
-
excess, if any, of the Change in Control Price over the Option Price,
multiplied by (ii) the number of shares of Common Stock covered by such
--
Option.
(b) Performance Options. Unless the Board otherwise determines in
-------------------
the manner set forth in Section 9.2 or at the time of grant, in the event
of a Change of Control prior to the date as of which Performance Options
have become vested in accordance with Section 6.3(b), a proportionate share
(determined in accordance with the immediately succeeding sentence) of each
outstanding Performance Option shall be canceled in exchange for a payment
in cash of an amount equal to the product of (i) the excess, if any, of the
-
Change in Control Price over the Option Price, multiplied by (ii) the
--
number of shares of Common Stock covered by the vested portion of the
Performance Option. Unless the Board otherwise determines at the time of
grant, in the event of a Change of Control, a proportionate share of any
Performance Options that have not vested and become exercisable on or prior
to the date of such Change of Control shall vest and become exercisable as
of such date, such proportionate share to equal the product of (i) the
-
percentage obtained by dividing (x) the cumulative EBITDA achieved by
-
Holding as of the last day of the calendar quarter ending coincident with
or immediately prior to the date of the Change of Control by (y) the EBITDA
-
target specified in the Option Agreement, multiplied by (ii) the total
--
number of Shares subject to such Performance Options.
10
<PAGE>
(c) Timing of Option Cancellation Payments. The cash payment
--------------------------------------
described in paragraphs (a) and (b) above shall be payable in full, as soon
as reasonably practicable, but in no event later than, 30 days following
the Change in Control, unless provided otherwise by the Board in the Award
Agreement evidencing such Options. Notwithstanding the foregoing
provisions of this Section 9.1, payment of the amount calculated in
accordance with this Section 9.1 shall, if so determined by the Board (as
constituted immediately prior to the Change in Control), be made in shares
of the common stock of the New Employer having an aggregate fair market
value equal to such amount and shall be payable in full, as soon as
reasonably practicable, but in no event later than 30 days, following the
Change in Control. For purposes hereof, the fair market value of a share
of common stock of the New Employer shall be determined by the Board (as
constituted immediately prior to the consummation of the transaction
constituting the Change in Control), in good faith, on the basis of the
factors described in the definition of the term "Fair Market Value," as
applied to the business, operations and financial results of the New
Employer and its subsidiaries and applicable affiliates.
9.2. Alternative Options. Notwithstanding Section 9.1, no
-------------------
cancellation, termination, acceleration of exercisability or vesting or
settlement or other payment shall occur with respect to any Option, if the Board
(as constituted immediately prior to the consummation of the transaction
constituting the Change in Control) reasonably determines, in good faith, prior
to the Change in Control that the Options shall be honored or assumed, or new
rights substituted therefor (such honored, assumed or substituted Option being
hereinafter referred to as an "Alternative Option") by the New Employer,
------------------
provided that any Alternative Options must:
- --------
(a) provide the Participant with rights and entitlements
substantially equivalent to or better than the rights and entitlements
applicable under the terms of the Options immediately prior to the
consummation of the transaction constituting the Change in Control,
including, but not limited to, an identical or better exercise and vesting
schedule and identical or better timing and methods of exercise or payment;
(b) have substantially equivalent economic value to the Options
(determined at the time of the Change in Control); and
(c) have terms and conditions which provide that in the event that
the Participant's employment is terminated by the New Employer for any
reason other than for Cause or by the Participant for Good Reason within
two years following a Change in Control (i) any conditions on the
-
Participant's rights under, or any restrictions on transfer or
exercisability applicable to, each such Alternative Option shall be waived
or shall lapse, as the case may be or (ii) the Participant shall have the
--
right to surrender such Alternative Option within 30 days following such
termination in exchange for a payment in cash equal to the excess of the
fair market value of the common stock subject to the Alternative Option
over the price, if any, that the Participant would be required to pay to
exercise such Alternative Option.
11
<PAGE>
9.3 Certain Take-Along Rights Prior to a Public Offering. Unless
----------------------------------------------------
otherwise determined by the Board at time of grant, the Board shall provide in
each Subscription Agreement evidencing Incentive Awards granted hereunder that,
upon certain transactions constituting a Change in Control, the Participant will
be required to sell shares of Common Stock then owned by him or her, for a cash
payment per share of Common Stock equal to the Change in Control Price, and upon
such additional terms and conditions as are set forth in such Subscription
Agreement.
Section 10. Amendment, Modification, and
-----------------------------------------
Termination of the Plan
-----------------------
The Board at any time may terminate or suspend the Plan, and from time
to time may amend or modify the Plan. No amendment, modification, termination
or suspension of the Plan shall in any manner adversely affect any Incentive
Award theretofore granted under the Plan, without the consent of the Participant
holding such Incentive Award. Shareholder approval of any such amendment,
modification, termination or suspension shall be obtained to the extent mandated
by applicable law, or if otherwise deemed appropriate by the Board.
Section 11. Miscellaneous Provisions
-------------------------------------
11.1. Nontransferability of Awards. No Options granted under the Plan
----------------------------
may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution or
as expressly provided in an Award Agreement. All rights with respect to any
Option granted to a Participant under the Plan shall be exercisable during his
or her lifetime only by such Participant. Restrictions, if any, on the transfer
of Common Stock purchased pursuant to Section 7.1 of the Plan or upon exercise
of any Options shall be set forth in the applicable Award Agreement evidencing
such Incentive Award, including without limitations, restrictions described in
Section 8.4 herein.
11.2. Beneficiary Designation. Each Participant under the Plan may
-----------------------
from time to time name any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan is to be paid
or by whom any right under the Plan is to be exercised in case of his or her
death. Each designation will revoke all prior designations by the same
Participant, shall be in a form prescribed by the Board and will be effective
only when filed by the Participant in writing with the Board during his or her
lifetime. In the absence of any such designation, benefits remaining unpaid or
Options or Deferred Stock Units outstanding at the Participant's death shall be
paid to or exercised by the Participant's surviving spouse, if any, or otherwise
to or by the Participant's estate.
11.3. No Guarantee of Employment or Participation. Nothing in the
-------------------------------------------
Plan shall interfere with or limit in any way the right of any member of the
CDRJ Group to terminate any Participant's employment at any time and for any
reason, nor confer upon any Participant any right to continue in the employ of
any member of the CDRJ Group.
12
<PAGE>
No Employee shall have a right to be selected as a Participant, or, having been
so selected, to receive any Incentive Awards under the Plan.
11.4. Tax Withholding. A member of the CDRJ Group shall have the
---------------
power to withhold, or require a Participant to remit to such member promptly
upon notification of the amount due, an amount determined by such member to be
sufficient to satisfy all Federal, state, local and foreign withholding tax
requirements in respect of any Incentive Award and the Company may (or may cause
another member of the CDRJ Group to) defer payment of cash or issuance or
delivery of Common Stock until such requirements are satisfied. The Board may
permit or require a Participant to satisfy the Participant's tax withholding
obligation hereunder in such other manner, subject to such conditions, as the
Board shall determine.
11.5. Indemnification. Each person who is or shall have been a
---------------
member of the Compensation Committee or the Board or the Holding Board shall be
indemnified and held harmless by the Company to the fullest extent permitted by
law against and from any loss, cost, liability or expense (including any related
attorney's fees and advances thereof) in connection with, based upon or arising
or resulting from any claim, action, suit or proceeding to which such person may
be made a party or in which such person may be involved by reason of any action
taken or failure to act under or in connection with the Plan or any Award
Agreement and from and against any and all amounts paid by such person in
settlement thereof, with the Company's approval, or paid by such person in
satisfaction of any judgment in any such action, suit or proceeding against such
person, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification
shall not be exclusive and shall be independent of any other rights of
indemnification to which such persons may be entitled under the Company's
Certification of Incorporation or By-laws, by Holding's Deed of Association or
other organizational documents, by contract, as a matter of law or otherwise.
11.6. No Limitation on Compensation. Nothing in the Plan shall be
-----------------------------
construed to limit the right of the Company to establish other plans or to pay
compensation to its employees in cash or property, in a manner which is not
expressly authorized under the Plan.
11.7. Requirements of Law. The granting of Incentive Awards and the
-------------------
issuance of shares of Common Stock shall be subject to all applicable laws,
rules and regulations, and to such approvals by any governmental agencies or
national or foreign securities exchanges as may be appropriate or required, as
determined by the Board. Notwithstanding any other provision of the Plan or any
Award Agreement, no Incentive Awards shall be granted under the Plan, and no
shares of Common Stock shall be issued upon exercise of, or otherwise in
connection with, any Incentive Award granted under the Plan, if such grant or
issuance would result in a violation of applicable law, including the federal
securities laws and any applicable state or foreign securities laws.
11.8. GOVERNING LAW. THE PLAN, AND ALL AGREEMENTS HEREUNDER, SHALL
-------------
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD REQUIRE
APPLICATION OF
13
<PAGE>
THE LAW OF ANOTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE CORPORATE LAW OF
THE STATE OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.
11.9. No Impact On Benefits. Incentive Awards granted under the
---------------------
Plan are not compensation for purposes of calculating an Employee's rights under
any employee benefit plan, except to the extent provided in any such plan.
11.10. Freedom of Action. Subject to Section 10, nothing in the Plan
-----------------
or any Award Agreement shall be construed as limiting or preventing the Company
or Holding or any Subsidiary thereof from taking any action with respect to the
operation or conduct of its business that it deems appropriate or in its best
interest.
11.11. Term of Plan. The Plan shall be effective as of the Effective
------------
Date. The Plan shall expire on the tenth anniversary of the Effective Date
(except as to Incentive Awards outstanding on that date), unless sooner
terminated pursuant to Section 10.
11.12. No Right to Particular Assets. Nothing contained in this Plan
-----------------------------
and no action taken pursuant to this Plan shall create or be construed to create
a trust of any kind or any fiduciary relationship between any member of the CDRJ
Group, on the one hand, and any Participant or executor, administrator or other
personal representative or designated beneficiary of such Participant, on the
other hand, or any other persons. Any reserves that may be established by a
member of the CDRJ Group in connection with this Plan shall continue to be held
as part of the general funds of Holding or such Subsidiary, and no individual or
entity other than such member of the CDRJ Group shall have any interest in such
funds until paid to a Participant. To the extent that any Participant or his
executor, administrator or other personal representative, as the case may be,
acquires a right to receive any payment from Holding or any Subsidiary pursuant
to this Plan, such right shall be no greater than the right of an unsecured
general creditor of such member of the CDRJ Group.
11.13. Notices. Each Participant shall be responsible for furnishing
-------
the Board with the current and proper address for the mailing of notices and
delivery of agreements and shares of Common Stock. Any notices required or
permitted to be given shall be deemed given if directed to the person to whom
addressed at such address and mailed by regular United States mail, first-class
and prepaid. If any item mailed to such address is returned as undeliverable to
the addressee, mailing will be suspended until the Participant furnishes the
proper address.
11.14. Severability of Provisions. If any provision of this Plan
--------------------------
shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and this Plan shall be construed
and enforced as if such provision had not been included.
11.15. Incapacity. Any benefit payable to or for the benefit of a
----------
minor, an incompetent person or other person incapable of receiving such benefit
shall be deemed paid when paid to such person's guardian or to the party
providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Committee, the Company and other parties
with respect thereto.
14
<PAGE>
11.16. No Rights as Stockholder. No Participant shall have any
------------------------
voting or other rights as a stockholder of Holding with respect to any Common
Stock covered by any Incentive Award until the issuance of a certificate or
certificates to the Participant for such Common Stock. No adjustment shall be
made for dividends or other rights for which the record date is prior to the
issuance of such certificate or certificates.
11.17. Headings and Captions. The headings and captions herein are
---------------------
provided for reference and convenience only, shall not be considered part of
this Plan and shall not be employed in the construction of this Plan.
15
<PAGE>
EXHIBIT 10.5
MANAGEMENT STOCK OPTION AGREEMENT
---------------------------------
MANAGEMENT STOCK OPTION AGREEMENT, dated as of , 1998,
by and between Jafra Cosmetics International, Inc., a Delaware corporation (the
"Company") and the grantee, an employee of the Company, whose name appears on
-------
the signature page hereof (the "Grantee").
-------
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, the Company is an indirect wholly-owned subsidiary of CDRJ
Investments (Lux) S.A., a Luxembourg societe anonyme ("Holding");
-------
WHEREAS, the Board of Directors of the Company (the "Board"), in
-----
consultation with the Board of Directors of Holding (the "Holding Board"), has
-------------
determined that it is in the best interest of Holding and its shareholders for
the Company to grant options to purchase from the Company shares of Holding's
Class A voting shares, par value $2.00 per share (the "Common Stock"), to select
------------
members of the management of the Company or its Subsidiaries (as defined herein)
in order to motivate and align the interests of such individuals with those of
Holding's shareholders, and in connection therewith, the Board has established
the Amended and Restated Jafra Cosmetics International, Inc. Stock Incentive
Plan (the "Plan");
----
WHEREAS, the Company and Holding have entered into a warrant
agreement, as amended (the "Holding Warrant"), pursuant to which the Company
---------------
may purchase a number of shares of Common Stock from Holding equal to the number
of shares of Common Stock covered by options granted under the Plan;
WHEREAS, the Company and the Grantee have entered into an Employment
Agreement, dated as of Employment Agreement Date (as the same may be amended
from time to time, the "Employment Agreement"), providing for, among other
--------------------
things, the grant to the Grantee of the stock options described herein;
WHEREAS, the Grantee and the Company desire to enter into an agreement
to evidence and confirm the grant of such stock options on the terms and
conditions set forth herein;
NOW, THEREFORE, to evidence the stock options so granted, and to set
forth the terms and conditions governing such stock options, the Company and the
Grantee hereby agree as follows:
1. Certain Definitions. As used in this Agreement, the following terms
-------------------
shall have the following meanings:
(a) "Acquisition" shall mean the acquisition, on April 30, 1998, by
-----------
Holding and certain of its Subsidiaries (as defined herein) from The
Gillette Company of substantially all of the assets of the worldwide Jafra
cosmetics business (the "Acquisition").
-----------
<PAGE>
(b) "Acquisition Agreement" shall mean the Acquisition Agreement,
---------------------
dated as of January 26, 1998, by and among CDRJ Holding Company, a Cayman
Islands exempt company, Holding and The Gillette Company, as amended from
time to time.
(c) "Affiliate" shall mean, with respect to any Person, any other
---------
Person that, directly or indirectly through one or more intermediaries,
Controls, is Controlled by, or is under common Control with the first
Person, including but not limited to a Subsidiary of the first Person, a
Person of which the first Person is a Subsidiary, or another Subsidiary of
a Person of which the first Person is also a Subsidiary.
(d) "Annual EBITDA Target" shall mean, with respect to each of the
--------------------
five Fiscal Years ending after the date hereof that are included in the
Business Plan, the EBITDA targeted for such Fiscal Year in the Business
Plan; provided, however, that in the event Holding or any Subsidiary
-------- -------
consummates a significant acquisition, disposition or other corporate
transaction or series of transactions that, in the judgement of the Board,
would reasonably be expected to impact the consolidated earnings of Holding
and the Subsidiaries, the EBITDA Target for the relevant Fiscal Years may
be appropriately adjusted by the Board to reflect such transaction or
series of transactions.
(e) "Applicable Percentage" shall mean, as of any date of
---------------------
determination, the quotient, expressed as a percentage, of (i) the actual,
-
aggregate EBITDA achieved by Holding and the Subsidiaries during the
relevant Fiscal Year divided by (ii) the Annual EBITDA Target for such
--
Fiscal Year.
(f) "Applicable Share Valuation" shall mean the annual valuation of
--------------------------
the Common Stock performed as of the last day of the last Fiscal Year
ending prior to the Determination Date by an independent valuation firm
chosen by the Board, except that, in the case of a Determination Date
occurring during the fourth fiscal quarter of any Fiscal Year beginning
with the fourth quarter of the 1998 Fiscal Year, the term "Applicable Share
----------------
Valuation" shall mean the annual valuation of the Common Stock performed as
---------
of the last day of such fourth fiscal quarter by an independent valuation
firm chosen by the Holding Board. Such annual valuations shall be
performed as promptly as practicable following the end of each Fiscal Year,
beginning with the 1998 Fiscal Year.
(g) "Board" shall have the meaning set forth in the recitals hereto.
-----
(h) "Business Plan" shall mean the business plan of Holding and the
-------------
Subsidiaries for the first five Fiscal Years ending after the date of the
closing of the Acquisition, as approved by the Board in consultation with
the Holding Board.
(i) "CD&R Fund" shall mean the Clayton, Dubilier & Rice Fund V
---------
Limited Partnership, a Cayman Islands exempted limited partnership, and any
successor investment vehicle managed by Clayton, Dubilier & Rice, Inc.
(j) "CDRJ Group" shall mean Holding and its subsidiaries.
----------
2
<PAGE>
(k) "CDRJ North Atlantic" shall mean CDRJ North Atlantic (Lux) Sarl, a
-------------------
wholly-owned subsidiary of Holding, and of which the Company is a wholly-
owned subsidiary.
(l) "Cause" shall have the meaning assigned to such term in the
-----
Employment Agreement.
(m) "Change in Control" shall mean, with respect to Holding, CDRJ
-----------------
North Atlantic or the Company, the first to occur after the date hereof of
the following events:
(i) the acquisition by any person, entity or "group" (as defined
in section 13(d) of the Exchange Act) (other than (x) any member of
-
the CDRJ Group, (y) any employee benefit plan of any member of the
-
CDRJ Group, or (z) the CD&R Fund or any Affiliate of the CD&R Fund)
-
through one transaction or a series of related transactions of 50% or
more of the combined voting power of the then outstanding voting
securities of Holding, CDRJ North Atlantic or the Company, as the case
may be;
(ii) the merger or consolidation of Holding, CDRJ North Atlantic
or the Company as a result of which persons who were stockholders of
Holding CDRJ North Atlantic or the Company, as the case may be,
immediately prior to such merger or consolidation, do not, immediately
thereafter, own, directly or indirectly, more than 50% of the combined
voting power entitled to vote generally in the election of directors
of the merged or consolidated company;
(iii) the liquidation or dissolution of Holding, CDRJ North
Atlantic or the Company (other than a dissolution occurring upon a
merger or consolidation thereof) other than a liquidation of CDRJ
North Atlantic or the Company, as the case may be, into Holding or a
Subsidiary thereof or a liquidation or dissolution that is incident to
a Reorganization; and
(iv) the sale, transfer or other disposition of all or
substantially all of the assets of Holding, CDRJ North Atlantic or the
Company through one transaction or a series of related transactions to
one or more persons or entities that are not, immediately prior to
such sale, transfer or other disposition, Affiliates of Holding or the
CD&R Fund.
(n) "Change in Control Price" shall mean the price per share of
-----------------------
Common Stock paid in conjunction with any transaction resulting in a Change
in Control (as determined in good faith by the Board if any part of such
price is payable other than in cash).
(o) "Common Stock" shall have the meaning set forth in the recitals
------------
hereto.
(p) "Company" shall have the meaning set forth in the introductory
-------
paragraph hereto.
3
<PAGE>
(q) "Control" shall mean, with respect to any Person, the possession,
-------
directly or indirectly, severally or jointly, of the power to direct or
cause the direction of the management policies of such Person, whether
through the ownership of voting securities, by contract or credit
arrangement, as trustee or executor, or otherwise.
(r) "Covered Options" shall have the meaning set forth in Section
---------------
4(b) hereof.
(i) "Cumulative EBITDA Target" shall mean, as of any date of
------------------------
determination, the sum of the Annual EBITDA Targets for each Fiscal Year in
the Measurement Period ending coincident with or immediately preceding such
date of determination.
(s) "Delay Period" shall have the meaning set forth in Section 10(c)
------------
hereof.
(t) "Determination Date" shall mean the effective date of any
------------------
termination of the Grantee's employment that gives rise to the successive
rights of Holding and the CD&R Fund to purchase Covered Options pursuant to
Section 5(c).
(u) "Disability" shall have the meaning assigned to such term in the
----------
Employment Agreement.
(v) "EBITDA" shall have the meaning assigned to such term in the
------
Credit Agreement, dated as of April 30, 1998, among the Company, the other
borrowers thereunder, Credit Suisse First Boston as administrative agent,
and the several lenders from time to time party thereto, as such agreement
may be amended from time to time.
(w) "Employment Agreement" shall have the meaning set forth in the
--------------------
recitals hereto.
(x) "Exchange Act" shall mean the U.S. Securities Exchange Act of
------------
1934, as amended.
(y) "Exercise Date" shall have the meaning set forth in Section 6
-------------
hereof.
(z) "Exercise Price" shall have the meaning set forth in Section 6
--------------
hereof.
(i) "Exercise Shares" shall have the meaning set forth in Section 6
---------------
hereof.
(aa) "Extraordinary Termination" shall mean a termination of the
-------------------------
Grantee's employment with the CDRJ Group by reason of the Grantee's death,
4
<PAGE>
Disability or Retirement, by the CDRJ Group other than for Cause or by the
Grantee for Good Reason.
(bb) "Fair Market Value" shall mean, as of any date, the fair market
-----------------
value on such date of a share of Common Stock as determined in good faith
by the Holding Board. In making a determination of Fair Market Value, the
Holding Board shall give due consideration to such factors as it deems
appropriate, provided that such factors shall include, without limitation,
the earnings and certain other financial and operating information of
Holding and its Subsidiaries in recent periods, the potential value of
Holding and its Subsidiaries as a whole, the future prospects of Holding
and its Subsidiaries and the industries in which they compete, the history
and management of Holding and its Subsidiaries, the general condition of
the securities markets, the fair market value of securities of companies
engaged in businesses similar to those of Holding and its Subsidiaries and
the Applicable Share Valuation. The determination of Fair Market Value
will not give effect to any restrictions on transfer of the shares of
Common Stock or the fact that such Common Stock would represent a minority
interest in Holding. Notwithstanding the foregoing, following a Public
Offering, Fair Market Value shall mean the average of the high and low
trading prices for a share of Common Stock on the primary national exchange
(including Nasdaq) on which the Common Stock is then traded on the trading
day immediately preceding the date as of which such Fair Market Value is
determined.
(cc) "Financing Agreements" shall have the meaning set forth in
--------------------
Section 10(a) hereof.
(dd) "First Purchase Period" shall have the meaning set forth in
---------------------
Section 5(c)(i) hereof.
(ee) "Fiscal Year" shall mean a fiscal year of Holding ending
-----------
December 31.
(ff) "Good Reason" shall have the meaning assigned to such term in
-----------
the Employment Agreement.
(gg) "Grant Date" shall mean the date hereof, which is the date on
----------
which the Options are granted to the Grantee.
(hh) "Grantee" shall have the meaning set forth in the introductory
-------
paragraph hereto.
(ii) "Holding Board" shall have the meaning set forth in the recitals
-------------
hereto.
(jj) "Management Stock Subscription Agreement" shall mean the
---------------------------------------
management stock subscription agreement, substantially in the form of the
draft thereof attached as an exhibit to the Plan or such other form as the
Grantee and the Company, in consultation with Holding, may agree, to be
entered into by Company and the Grantee in connection with the Grantee's
exercise of any of the
5
<PAGE>
Options and purchase of the Shares subject to any such Options pursuant to
Section 6 hereof.
(kk) "Measurement Period" shall mean, as of any date of
------------------
determination, the period commencing on the first day of the first Fiscal
Year included in the Business Plan and ending on the last day of the Fiscal
Year (or, in the case of a determination pursuant to Section 9(b) the last
day of the fiscal quarter) ending coincident with or immediately prior to
such date of determination and within the Business Plan.
(ll) "New Employer" shall mean the Company, or the parent or a
------------
subsidiary of such Company, immediately following a Change in Control.
(mm) "Normal Termination Date" shall mean the tenth anniversary of
-----------------------
the date hereof.
(nn) "Option" shall mean the right granted to the Grantee hereunder
------
to purchase from the Company one share of Common Stock for a purchase price
equal to the Option Price and otherwise subject to the terms and conditions
of this Agreement. The term "Options" shall mean, collectively, the
-------
Performance Options and the Service Options granted to the Grantee hereby.
(oo) "Option Price" shall mean, with respect to each Share covered by
------------
an Option, the exercise price at which the Grantee may purchase such Share
specified in Section 2(b) hereof.
(pp) "Performance Options" shall mean those Options that are subject
-------------------
to the provisions of Section 3(b) hereof providing for the vesting of such
Options on the basis of the financial performance of the CDRJ Group and the
continued employment of the Grantee. Performance Options have been granted
to the Grantee pursuant to this Agreement with respect to the number of
Shares indicated on the signature page hereof under the heading
"Performance Options".
--------------------
(qq) "Person" shall mean any natural person, firm, partnership,
------
limited liability company, association, corporation, company, trust,
business trust, governmental authority or other entity.
(rr) "Public Offering" shall mean the first day as of which sales of
---------------
Common Stock are made to the public in the United States pursuant to an
underwritten public offering of the Common Stock led by one or more
underwriters at least one of which is an underwriter of nationally
recognized standing.
(ss) "Purchase Price" shall have the meaning set forth in Section
--------------
5(f).
(tt) "Registration and Participation Agreement" shall have the
----------------------------------------
meaning set forth in Section 7(f) hereof.
6
<PAGE>
(uu) "Reorganization" means a reincorporation of Holding in another
--------------
jurisdiction, whether through a merger with or into another entity, a
transfer of substantially all of its assets to another entity or other
transactions having a similar result.
(vv) "Retirement" shall mean the Grantee's retirement from employment
---------
with Holding and its Subsidiaries at or after age 65.
(ww) "Rule 144" shall mean Rule 144 promulgated under the Securities
--------
Act.
(xx) "Second Purchase Period" shall have the meaning set forth in
----------------------
Section 5(c)(i) hereof.
(yy) "Securities Act" shall mean the U.S. Securities Act of 1933, as
--------------
amended.
(zz) "Service Options" shall mean those Options that are subject to
---------------
the provisions of Section 3(a) hereof providing for the vesting of such
Options on the basis of the Grantee's completion of service. Service
Options have been granted to the Grantee pursuant to this Agreement with
respect to the number of Shares indicated on the signature page hereof
under the heading "Service Options".
---------------
(aaa) "Shares" shall mean the shares of Common Stock subject to the
------
Options.
(bbb) "Subsidiary" shall mean, with respect to any Person, each
----------
corporation or other Person in which the first Person owns or Controls,
directly or indirectly, capital stock or other ownership interests
representing 50% or more of the combined voting power of the outstanding
voting stock or other ownership interests of such corporation or other
Person.
(ccc) "Successor" shall mean, with respect to any Person, a Person
---------
that succeeds to the first Person's assets and liabilities by merger,
liquidation, dissolution or otherwise by operation of law, or a Person to
which all or substantially all the assets and/or business of the first
Person are transferred.
2. Grant of Options.
----------------
(a) Confirmation of Grant. The Company hereby evidences and confirms
---------------------
its grant to the Grantee, effective as of the date hereof, of (i) the Service
-
Options and (ii) the Performance Options. The Options are not intended to be
--
incentive stock options under the U.S. Internal Revenue Code of 1986, as
amended. This Agreement is subordinate to, and the terms and conditions of the
Options granted hereunder are subject to, the terms and conditions of the Plan.
If there is any inconsistency between the terms hereof and the terms of the
Plan, the terms of the Plan shall govern.
(b) Option Price. Each Share covered by an Option shall have an
------------
Option Price of $100, plus any capital or other similar tax imposed on Holding
in connection
7
<PAGE>
with the Company's exercise of the Holding Warrant in order to deliver Exercise
Shares to Grantee pursuant to Section 6(a) hereof.
3. Exercisability.
--------------
(a) Service Options. Except as otherwise provided in Section 9(a) of
---------------
this Agreement and subject to the continuous employment of the Grantee with the
Company or one or more members of the CDRJ Group until the applicable vesting
date, the Service Options shall become vested in three equal annual
installments, on each of the first three anniversaries of the Grant Date.
(b) Performance Options. Except as otherwise provided in Section
-------------------
9(a) of this Agreement and subject to the continuous employment of the Grantee
with the Company or one or more members of the CDRJ Group until the applicable
vesting date, the Performance Options shall become vested as follows:
(i) the number of Performance Options equal to the product of (x) the
-
Applicable Percentage multiplied by (y) one-third of the total number of
-
Performance Options granted hereunder shall become vested on each of the
first three anniversaries of the Grant Date, such Applicable Percentage to
be determined as of the last day of the Fiscal Year ending immediately
prior the applicable anniversary date, provided in each such case that
Holding and the Subsidiaries have achieved at least 85% of the Annual
EBITDA Target for such Fiscal Year;
(ii) if less than one-third of the total number of Performance
Options granted hereunder shall have become vested on any of the first
three anniversaries of the Grant Date in accordance with the preceding
clause (i), such portion that has not become so vested shall become vested
as of the first day of the Fiscal Year immediately following the Fiscal
Year, if any, that the actual aggregate EBITDA achieved by Holding and the
Subsidiaries during the Measurement Period equals or exceeds the Cumulative
EBITDA Target as of the last day of the Measurement Period; and
(iii) any Performance Options that do not become vested in accordance
with either of the preceding clauses (i) or (ii) shall become vested on the
ninth anniversary of the Grant Date.
The Board shall determine in good faith whether and the extent to which CDRJ
Group has achieved any applicable performance objectives and the determination
of the Board shall be conclusive.
(c) Conditions. The Board, in its sole discretion but in
----------
consultation with the Holding Board, may accelerate the vesting or
exercisability of any Option, all Options or any class of Options, at any time
and from time to time. Shares covered by vested Options may, subject to the
provisions hereof, be purchased at any time and from time to time on or after
the date the corresponding Options become vested in accordance with the
provisions of this Section 3 until the date one day prior to the date on which
such Options terminate, provided that any such purchase shall be effected
--------
pursuant to and subject to
8
<PAGE>
Sections 5 and 6 hereof and the provisions contained in the Management Stock
Subscription Agreement related to the purchase of such Shares.
4. Termination of Options.
----------------------
(a) Normal Termination Date. Subject to Sections 4(b) and 9, the
-----------------------
Options shall terminate and be canceled on the Normal Termination Date.
(b) Early Termination. If the Grantee's employment with the Company
-----------------
and any other member of the CDRJ Group that employs the Grantee is voluntarily
or involuntarily terminated for any reason prior to the Normal Termination Date,
any Options held by the Grantee that have not become vested on or before the
effective date of such termination of employment shall terminate and be canceled
immediately upon such termination of employment. Subject to the provisions of
Sections 5(c) and 9, all Options held by the Grantee on the effective date of
such termination of employment that shall have become vested on or before such
effective date (such Options, the "Covered Options") shall remain exercisable
---------------
for whichever of the following periods is applicable, and if not exercised
within such period, shall automatically terminate and be canceled upon the
expiration of such period: (i) if the Grantee's employment is terminated by
-
reason of an Extraordinary Termination, the Covered Options shall remain
exercisable solely until the first to occur of (A) the six month anniversary of
-
the effective date of the Grantee's termination of employment or (B) the Normal
-
Termination Date and (ii) if the Grantee's employment is terminated for any
--
reason other than (A) an Extraordinary Termination or (B) for Cause, the Covered
- -
Options shall remain exercisable for the 30 day period immediately following the
earliest to occur of (x) the expiration of the Second Purchase Period, (y) the
- -
receipt by the Grantee of written notice from the CD&R Fund as to whether it
will exercise its right to purchase any of the Covered Options pursuant to
Section 5(c)(i) and (z) the Normal Termination Date. Notwithstanding anything
-
else contained in this Agreement, if the Grantee's employment with the Company
and any other members of the CDRJ Group that employs the Grantee is terminated
for Cause, all Options (whether or not then vested or exercisable) shall
automatically terminate and be canceled immediately upon such termination.
Nothing in this Agreement shall be deemed to confer on the Grantee any right to
continue in the employ of the Company or any other member of the CDRJ Group, or
to interfere with or limit in any way the right of the Company or any other
member of the CDRJ Group to terminate such employment at any time.
5. Restrictions on Exercise; Non-Transferability of Options;
---------------------------------------------------------
Repurchase of Options.
- ---------------------
(a) Restrictions on Exercise. Once vested in accordance with the
------------------------
provisions of this Agreement, the Options may be exercised only with respect to
full shares of Common Stock. No fractional shares of Common Stock shall be
issued. Notwithstanding any other provision of this Agreement, the Options may
not be exercised in whole or in part, and no certificates representing Shares
shall be delivered, (i) (A) unless all requisite approvals and consents of any
- -
governmental authority of any kind having jurisdiction over the exercise of the
Options, the delivery of the Shares upon exercise of the Options or the issuance
of the Shares to the Company pursuant to the Holding Warrant shall have been
secured, (B) unless the purchase of the Shares upon the exercise
-
9
<PAGE>
of the Options shall be exempt from registration under applicable U.S. federal
and state securities laws, and applicable non-U.S. securities laws, or the
purchase of the Shares shall have been registered under such laws, and (C)
-
unless all applicable U.S. federal, state and local and non-U.S. tax withholding
requirements shall have been satisfied or (ii) if such exercise would result in
--
a violation of the terms or provisions of or a default or an event of default by
Holding or any of its Subsidiaries under any of the Financing Agreements.
(b) Non-Transferability of Options. Except as contemplated by Section
------------------------------
5(c), the Options may be exercised only by the Grantee or, following his death,
by the Grantee's estate. Except as contemplated by Section 5(c), the Option is
not assignable or transferable, in whole or in part, and it may not, directly or
indirectly, be offered, transferred, sold, pledged, assigned, alienated,
hypothecated or otherwise disposed of or encumbered (including without
limitation by gift, operation of law or otherwise) other than (i) by will or by
-
the laws of descent and distribution to the estate of the Grantee upon the
Grantee's death or (ii) with the consent of the Board, to (A) a trust or trusts
-- -
for the exclusive benefit of the Grantee's spouse, children or grandchildren
("Family Members") or (B) a partnership or limited liability company for the
- ---------------- -
exclusive benefit of such Family Members of which such Family Members and/or
trusts are the only partners or members, as the case may be, provided that the
--------
deceased Grantee's beneficiary or the representative of the Grantee's estate or
the Grantee's permitted transferee shall acknowledge and agree in writing, in a
form reasonably acceptable to the Company, to be bound by the provisions of this
Agreement and the Plan as if such beneficiary or the estate were the Grantee.
(c) Purchase of Options on Termination of Employment.
------------------------------------------------
(i) Termination of Employment. If the Grantee's employment with the
-------------------------
Company and any other member of the CDRJ Group that employs the Grantee is
terminated for any reason, the Company shall have an option to purchase all
or any portion of the Covered Options and shall have 60 days from the
effective date of the Grantee's termination of employment (such 60-day
period being hereinafter referred to as the "First Purchase Period") during
---------------------
which to give notice in writing to the Grantee of its election to exercise
or not to exercise such right to purchase the Covered Options. The Company
hereby undertakes to use reasonable efforts to act as promptly as
practicable following such termination to make such election. If the
Company (i) fails to give notice that it intends to exercise its right to
-
purchase the Covered Options within the First Purchase Period or (ii) gives
--
notice of its election to purchase only a portion of the Covered Options or
that it will not purchase any of the Covered Options, the CD&R Fund shall
have the right to purchase all or any portion of the Covered Options not
purchased by the Company, and shall have until the expiration of the
earlier of (x) 60 days following the end of the First Purchase Period or
-
(y) 60 days from the date of receipt by the CD&R Fund of written notice
-
from the Company as to whether it will exercise its right to purchase the
Covered Options (such 60-day period being hereinafter referred to as the
"Second Purchase Period"), to give notice in writing to the Grantee of the
-----------------------
CD&R Fund's exercise of its right to purchase all or any portion of such
Covered Options. The Grantee shall be entitled to retain any Covered
Options that are not purchased by the Company or the CD&R Fund
10
<PAGE>
pursuant to this Section 5(c), subject to all of the provisions of this
Agreement (including, without limitation, Section 4(b)).
(ii) Purchase Price, etc. All purchases pursuant to this Section 5(c)
-------------------
by the Company or the CD&R Fund shall be for a purchase price and effected
in the manner prescribed by Sections 5(f), (g) and (h).
(d) Notice of Termination. The Company shall give written notice of
---------------------
any termination of the Grantee's employment to the CD&R Fund, except that if
such termination (if other than as a result of death) is by the Grantee, the
Grantee shall give written notice of such termination to the Company and the
Company shall give written notice of such termination to the CD&R Fund.
(e) Public Offering. In the event that a Public Offering has been
---------------
consummated, neither the Company nor the CD&R Fund shall have any rights to
purchase the Covered Options pursuant to Section 5(c).
(f) Purchase Price. Subject to Section 10(c) hereof, the purchase
--------------
price to be paid to the Grantee for the Covered Options purchased pursuant to
Section 5(c) (the "Purchase Price") shall be equal to the excess, if any, of (i)
-------------- -
the aggregate Fair Market Value, as of the Determination Date, of the Shares
then covered by those Covered Options being purchased over (ii) the aggregate
--
Option Price for such Shares.
(g) Closing of Purchase; Payment of Purchase Price. Subject to
----------------------------------------------
Section 10, the closing of a purchase of any Covered Options pursuant to this
Section 5 shall take place at the principal office of the Company on the tenth
business day following the receipt by the Grantee of the Company's or the CD&R
Fund's, as the case may be, notice of exercise of its right to purchase any such
Covered Options pursuant to Section 5(c). At the closing, (i) subject to the
-
proviso below, the Company or the CD&R Fund, as the case may be, shall pay the
Purchase Price to the Grantee for the Covered Options being purchased by
delivery to the Grantee of cash or immediately available funds in an amount
equal to such Purchase Price and such Covered Option shall be canceled and (ii)
--
the Grantee shall deliver to the Company such instruments as the Company may
reasonably request, signed by the Grantee, free and clear of all security
interests, liens, claims, encumbrances, charges, options, restrictions on
transfer, proxies and voting and other agreements of whatever nature; provided,
--------
however, that if the Determination Date occurs during the first or last fiscal
- -------
quarter of any Fiscal Year, the Company or the CD&R Fund, as the case may be,
may defer the payment of a portion of the Purchase Price for the Covered Options
being purchased until the tenth business day following receipt by Employer of
the Applicable Share Valuation (such tenth business day, the "Deferred Payment
----------------
Date"). In the event of any such deferral, (i) at the closing of the purchase
- ---- -
of the Covered Options, the Company or the CD&R Fund, as the case may be, shall
pay to the Grantee an amount (the "First Installment Amount") equal to 80% of
------------------------
the excess of (A) the aggregate Fair Market Value of the Shares then covered by
-
the Covered Options being purchased, determined on the basis of the most recent
available annual valuation of the Shares, over (B) the aggregate Option Price
-
for such Shares, and (ii) no later than the Deferred Payment Date, the Company
--
or the CD&R Fund, as the case may be, shall pay an additional amount to the
Grantee equal the sum of (A) the excess, if any, of the Purchase Price for the
-
Covered Options being purchased over the First Installment
11
<PAGE>
Amount (the "Excess Payment") and (B) interest on the Excess Payment for the
-------------- -
period commencing on the closing date of the purchase of the Shares and ending
on the date of payment of such additional amount pursuant to this clause (ii) at
the average annual cost to Holding and its Subsidiaries of its bank indebtedness
obligations outstanding during such period or, if there are no such obligations
outstanding, one percentage point greater than the average annual prime rate
charged during such period by Chase Bank or such other nationally recognized
bank designated by Holding.
(h) Application of the Purchase Price to Certain Loans. The Grantee
--------------------------------------------------
agrees that the Company and the CD&R Fund shall be entitled to apply any amounts
to be paid by the Company or the CD&R Fund, as the case may be, to purchase the
Covered Options pursuant to this Section 5 to discharge any indebtedness of the
Grantee to Holding or any Subsidiary, or indebtedness of the Grantee that is
guaranteed by Holding or any Subsidiary, including, but not limited to, any
indebtedness of the Grantee incurred to purchase any shares of Common Stock.
(i) Withholding. Whenever Shares are to be issued pursuant to the
-----------
Options, the Company may require the recipient of the Shares to remit to the
Company an amount in cash sufficient to satisfy any applicable U.S. federal,
state and local and non-U.S. tax withholding requirements as a condition to the
issuance of such Shares. In the event any cash is paid to the Grantee pursuant
to this Section 5 or Section 9, the Company shall have the right to withhold an
amount from such payment sufficient to satisfy any applicable U.S. federal,
state and local and non-U.S. tax withholding requirements. If shares of Common
Stock are traded on a national securities exchange or bid and ask prices for
shares of Common Stock are quoted on the Nasdaq, the Company may, if requested
by the Grantee, withhold Shares to satisfy the minimum applicable withholding
requirements, subject to the provisions of the Plan and any rules adopted by the
Board regarding compliance with applicable law, including, but not limited to,
section 16(b) of the Exchange Act.
6. Manner of Exercise. (a) To the extent that any outstanding
------------------
Options shall have become and remain vested and exercisable as provided in
Sections 3 and 4 and subject to such reasonable administrative regulations as
the Board may have adopted, such Options may be exercised, in whole or in part,
by notice to the Secretary of the Company in writing given at least 15 business
days prior to the date as of which the Grantee will so exercise the Options (the
"Exercise Date"), specifying the number of whole Shares with respect to which
-------------
the Options are being exercised (the "Exercise Shares") and the aggregate Option
---------------
Price for such Exercise Shares, provided that if shares of Common Stock are
--------
traded on a U.S. national securities exchange or bid and ask prices for shares
of Common Stock are quoted over Nasdaq, notice may be given five business days
before the Exercise Date. Subject to Section 6(b), on or before the Exercise
Date, Holding and the Grantee shall enter into a Management Stock Subscription
Agreement which shall contain (unless a Public Offering shall have occurred
prior to the Exercise Date) provisions corresponding to Section 5(c) hereof. In
accordance with the Management Stock Subscription Agreement, (i) on or before
-
the Exercise Date, the Grantee shall deliver to the Company full payment for the
Exercise Shares in United States dollars in cash or immediately available funds
in an amount equal to the product of the number of Exercise Shares, multiplied
by the Option Price plus any capital or other similar tax imposed in connection
----
with the issuance of the Exercise Shares to the Company upon the
12
<PAGE>
Company's exercise of the Holding Warrant (collectively, the "Exercise Price")
--------------
and (ii) subject to Section 6(b), the Company shall deliver to the Grantee a
--
certificate or certificates representing the Exercise Shares, registered in the
name of the Grantee and bearing appropriate legends as provided in Section 7(b)
hereof. If, as of the Exercise Date, shares of Common Stock are traded on a U.S.
national securities exchange or bid and ask prices for shares of Common Stock
are quoted over Nasdaq, the Grantee may, in lieu of tendering cash, tender
shares of Common Stock that have been owned by the Grantee for at least six
months, having an aggregate Fair Market Value on the Exercise Date equal to the
Exercise Price or may deliver a combination of cash and such shares of Common
Stock having an aggregate Fair Market Value equal to the difference between the
Exercise Price and the amount of such cash as payment of the Exercise Price,
subject to such rules and regulations as may be adopted by the Board to provide
for the compliance of such payment procedure with applicable law, including
section 16(b) of the Exchange Act. The Company may require the Grantee to
furnish or execute such other documents as the Company, in consultation with
Holding, shall reasonably deem necessary (i) to evidence such exercise, (ii) to
- --
determine whether registration is then required under the Securities Act and
(iii) to comply with or satisfy the requirements of the Securities Act,
---
applicable state or non-U.S. securities laws or any other applicable law.
(b) Notwithstanding anything herein to the contrary, the Company, in
consultation with the Holding Board, may, in lieu of delivering the Exercise
Shares to the Grantee, return to the Grantee the Exercise Price tendered for the
Exercise Shares and pay to the Grantee an additional amount equal to the excess
of (i) the Fair Market Value, as of the Determination Date, of the Exercise
-
Shares over (ii) the Exercise Price.
--
7. Grantee's Representations, Warranties and Covenants.
---------------------------------------------------
(a) Investment Intention. The Grantee represents and warrants that
--------------------
the Options have been, and any Exercise Shares will be, acquired by the Grantee
solely for the Grantee's own account for investment and not with a view to or
for sale in connection with any distribution thereof. The Grantee agrees that
the Grantee will not, directly or indirectly, offer, transfer, sell, pledge,
hypothecate or otherwise dispose of all or any of the Options or any of the
Exercise Shares (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of all or any of the Options or any of the Exercise Shares),
except in compliance with the Securities Act and the rules and regulations of
the Commission thereunder, and in compliance with applicable state securities or
"blue sky" laws and non-U.S. securities laws. The Grantee further understands,
acknowledges and agrees that none of the Exercise Shares may be transferred,
sold, pledged, hypothecated or otherwise disposed of unless the provisions of
the related Management Stock Subscription Agreement shall have been complied
with or have expired.
(b) Legends. The Grantee acknowledges that any certificate
-------
representing the Exercise Shares shall bear an appropriate legend, which will
include, without limitation, the following language:
"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
PROVISIONS OF A MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, DATED AS OF
_____ __, ___ AND
13
<PAGE>
NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY IT ARE
ASSIGNABLE OR OTHERWISE TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SUCH MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, AS THE
SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF THE CURRENT FORM OF
WHICH IS ON FILE WITH THE SECRETARY OF THE ADVISORY COMMITTEE OF
HOLDING. THE SHARES REPRESENTED BY THIS CERTIFICATE ARE ENTITLED TO
CERTAIN OF THE BENEFITS OF AND ARE BOUND BY CERTAIN OF THE OBLIGATIONS
SET FORTH IN A REGISTRATION AND PARTICIPATION AGREEMENT, DATED AS OF
APRIL 30, 1998, AMONG THE COMPANY AND CERTAIN STOCKHOLDERS OF HOLDING,
AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF THE CURRENT
FORM OF WHICH IS ON FILE WITH THE SECRETARY OF THE ADVISORY COMMITTEE
OF HOLDING."
"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE OR NON-U.S.
SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A) SUCH DISPOSITION
- -
IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, (B) THE HOLDER HEREOF SHALL HAVE
-
DELIVERED TO HOLDING AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL
SHALL BE REASONABLY SATISFACTORY TO HOLDING, TO THE EFFECT THAT SUCH
DISPOSITION IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF SUCH ACT OR
(C) A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION,
-
REASONABLY SATISFACTORY TO COUNSEL FOR HOLDING, SHALL HAVE BEEN
OBTAINED WITH RESPECT TO SUCH DISPOSITION AND (ii) SUCH DISPOSITION IS
--
PURSUANT TO REGISTRATION UNDER ANY APPLICABLE STATE AND NON-U.S.
SECURITIES LAWS OR AN EXEMPTION THEREFROM."
(c) Securities Law Matters. The Grantee acknowledges receipt of
----------------------
advice from the Company that (i) the Exercise Shares have not been registered
-
under the Securities Act or qualified under any state securities or "blue sky"
or non-U.S. securities laws, (ii) it is not anticipated that there will be any
--
public market for the Exercise Shares, (iii) the Exercise Shares must be held
---
indefinitely and the Grantee must continue to bear the economic risk of the
investment in the Exercise Shares unless the Exercise Shares are subsequently
registered under the Securities Act and such state laws or an exemption from
registration is available, (iv) Rule 144 is not presently available with respect
--
to sales of securities of the Company and the Company has made no covenant to
the Grantee to make Rule 144 available, (v) when and if the Exercise Shares may
-
be disposed of without registration in reliance upon Rule 144, such disposition
can be made only in limited
14
<PAGE>
amounts in accordance with the terms and conditions of such Rule, (vi) Holding
--
does not plan to file reports with the Commission or make public information
concerning Holding available unless required to do so by law or the terms of its
Financing Agreements, (vii) if the exemption afforded by Rule 144 is not
---
available, sales of the Exercise Shares may be difficult to effect because of
the absence of public information concerning Holding, (viii) a restrictive
----
legend in the form heretofore set forth shall be placed on the certificates
representing the Exercise Shares and (ix) a notation shall be made in the
--
appropriate records of Holding indicating that the Exercise Shares are subject
to restrictions on transfer set forth in this Agreement and, if Holding should
in the future engage the services of a stock transfer agent, appropriate stop-
transfer restrictions will be issued to such transfer agent with respect to the
Exercise Shares.
(d) Compliance with Rule 144. If any of the Exercise Shares are to be
------------------------
disposed of in accordance with Rule 144, the Grantee shall transmit to Holding
and the Company an executed copy of Form 144 (if required by Rule 144) no later
than the time such form is required to be transmitted to the Commission for
filing and such other documentation as Holding or the Company may reasonably
require to assure compliance with Rule 144 in connection with such disposition.
(e) Ability to Bear Risk. The Grantee covenants that the Grantee will
--------------------
not exercise all or any of the Options unless (i) the financial situation of the
-
Grantee is such that the Grantee can afford to bear the economic risk of holding
the Exercise Shares for an indefinite period and (ii) the Grantee can afford to
--
suffer the complete loss of the Grantee's investment in the Exercise Shares.
(f) Registration; Restrictions on Sale upon Public Offering. The
-------------------------------------------------------
Grantee acknowledges and agrees that in respect of any Exercise Shares purchased
upon exercise of all or any of the Options, the Grantee shall be entitled to the
rights and subject to the obligations created under the Registration and
Participation Agreement, dated as of April 30, 1998, among Holding and certain
stockholders of Holding, as the same may be amended, modified or supplemented
from time to time (the "Registration and Participation Agreement"), to the
----------------------------------------
extent set forth therein. The Grantee agrees that, in the event that Holding
files a registration statement under the Securities Act with respect to an
underwritten public offering of any shares of its capital stock, the Grantee
will not effect any public sale or distribution of any shares of the Common
Stock (other than as part of such public offering), including but not limited
to, pursuant to Rule 144 or Rule 144A under the Securities Act, during the 20
days prior to and the 180 days after the effective date of such registration
statement. The Grantee further understands and acknowledges that any sale,
transfer or other disposition of the Exercise Shares by him following a public
offering will be subject to compliance with, and may be limited under, the
federal securities laws and/or state "blue sky" and/or non-U.S. securities laws.
(g) Section 83(b) Election. The Grantee agrees that, within 20 days
----------------------
of any Exercise Date that occurs prior to a Public Offering, the Grantee shall
give notice to the Company and Holding as to whether the Grantee has made or
intends to make an election pursuant to Section 83(b) of the Internal Revenue
Code of 1986, as amended, with respect to the Exercise Shares purchased on such
date, and acknowledges that if the Grantee is subject to United States federal
income tax the Grantee will be solely responsible for any and all U.S., state,
and non-U.S. income and other tax liabilities payable
15
<PAGE>
by the Grantee in connection with the Grantee's exercise of any Options or
purchase or receipt of any Exercise Shares or attributable to the Grantee's
making or failing to make such an election.
8. Representations and Warranties of the Company. The Company
---------------------------------------------
represents and warrants to the Grantee that (a) the Company has been duly
-
incorporated and is an existing corporation in good standing under the laws of
the state of Delaware, (b) this Agreement has been duly authorized, executed and
-
delivered by the Company and constitutes a valid and legally binding obligation
of the Company enforceable against the Company in accordance with its terms, (c)
-
Holding has issued to the Company the Holding Warrant, pursuant to which the
Company will be entitled to purchase from time to time up to 104,282 shares in
the aggregate of Common Stock from Holding for a purchase price per share equal
to the fair market value per share of Common Stock at the time of exercise plus
any capital or other taxes imposed in connection with the issuance of such
shares pursuant to the Holding Warrant and (d) the Exercise Shares, when issued,
-
delivered and paid for, upon exercise of the Options in accordance with the
terms hereof and the Management Stock Subscription Agreement, will be duly
authorized, validly issued, fully paid and nonassessable, and free and clear of
any liens or encumbrances other than those created pursuant to this Agreement,
the Management Stock Subscription Agreement or otherwise in connection with the
transactions contemplated hereby.
9. Change in Control.
-----------------
(a) Service Options and Vested Performance Options. Subject to
----------------------------------------------
Section 9(d), in the event of a Change in Control, all of the Included Options
(as defined in Section 9(b) below) shall be canceled in exchange for a payment
in accordance with Section 9(c) of an amount equal to the excess, if any, of (i)
-
the product of the Change in Control Price multiplied by the aggregate number of
Shares covered by all such Included Options immediately prior to the Change in
Control, (ii) over the aggregate Option Price for all such Shares. Performance
--
Options that are not Included Options, if any, shall automatically terminate and
be canceled upon the consummation of the transaction constituting the Change in
Control.
(b) Definition of Included Options. The term "Included Options" shall
------------------------------
mean, collectively, (i) each Service Option outstanding immediately prior to the
-
consummation of the transaction constituting the Change in Control (regardless
of whether such Service Option is at such time otherwise vested or exercisable),
(ii) each Performance Option outstanding immediately prior to the consummation
--
of the transaction constituting the Change in Control that shall have become
vested in accordance with Section 3(b) hereof prior to such time, if any, and
(iii) if any Performance Options have not become vested in accordance with
- ----
Section 3(b) prior to the date of the consummation of the transaction
constituting the Change in Control, the number of Performance Options equal to
the excess, if any, of (x) the product of (I) the quotient, expressed as a
- -
percentage, of (A) the actual aggregate EBITDA achieved by Holding and the
-
Subsidiaries during the Measurement Period divided by (B) the sum of the Annual
-
EBITDA Targets for each of the 1998, 1999 and 2000 Fiscal Years, multiplied by
(II) the total number of Performance Options granted hereunder over (y) the
- --- -
total number of Performance Options which have become vested in accordance with
Section 3(b) prior to such time.
16
<PAGE>
(c) Timing of Option Cancellation Payments; Discretionary
-----------------------------------------------------
Acceleration. Notwithstanding the provisions of the preceding paragraphs (a) and
- ------------
(b), the Board (as constituted immediately prior to the consummation of the
transaction constituting the Change in Control) may determine, in its
discretion, to accelerate the exercisability or cause the cancellation and
payment of an amount calculated as provided in Section 9(a) in respect of all or
any additional portion of the Performance Options.
Payment of the amount calculated in accordance with Section 9(a) shall
be made in cash or, if determined by the Board (as constituted immediately prior
to the Change in Control), in shares of the common stock of the New Employer
having an aggregate fair market value equal to such amount and shall be payable
in full, as soon as reasonably practicable, but in no event later than 30 days,
following the Change in Control. For purposes hereof, the fair market value of
a share of common stock of the New Employer shall be determined by the Board (as
constituted immediately prior to the consummation of the transaction
constituting the Change in Control), in good faith, on the basis of the factors
described in the definition of the term "Fair Market Value" contained in Section
1, other than an Applicable Share Valuation, as applied to the business,
operations and financial results of the New Employer and its subsidiaries and
applicable affiliates.
(d) Alternative Options. Notwithstanding Sections 9(a), 9(b) and
-------------------
9(c), no cancellation, termination, acceleration of exercisability or vesting or
settlement or other payment shall occur with respect to any Option, including
any Included Option, if the Board (as constituted immediately prior to the
consummation of the transaction constituting the Change in Control) reasonably
determines, in good faith, prior to the Change in Control that the Options shall
be honored or assumed, or new rights substituted therefor (such honored, assumed
or substituted Option being hereinafter referred to as an "Alternative Option")
------------------
by the New Company, provided that any Alternative Options must:
--------
(i) provide the Grantee with rights and entitlements substantially
equivalent to or better than the rights and entitlements applicable under
the terms of the Options immediately prior to the consummation of the
transaction constituting the Change in Control, including, but not limited
to, an identical or better exercise and vesting schedule and identical or
better timing and methods of exercise or payment;
(ii) have substantially equivalent economic value to the Options
(determined at the time of the Change in Control); and
(iii) have terms and conditions which provide that in the event that
the Grantee's employment is terminated by the New Employer for any reason
other than for Cause or by the Grantee for Good Reason within two years
following a Change in Control:
(x) any conditions on the Grantee's rights under, or any
restrictions on transfer or exercisability applicable to, each such
Alternative Option shall be waived or shall lapse, as the case may be;
or
17
<PAGE>
(y) the Grantee shall have the right to surrender such
Alternative Option within 30 days following such termination in
exchange for a payment in cash equal to the excess of the fair market
value of the common stock subject to the Alternative Option over the
price, if any, that the Grantee would be required to pay to exercise
such Alternative Option.
10. Certain Restrictions on Repurchases.
-----------------------------------
(a) Financing Agreements, etc. Notwithstanding any other provision
-------------------------
of this Agreement, the Company shall not be obligated or permitted to pay the
purchase price for any Covered Options that the Company may elect to purchase
from the Grantee pursuant to Section 5(c) if (i) the payment of such purchase
-
price would result in a violation of the terms or provisions of, or result in a
default or an event of default under, any guarantee, financing or security
agreement or document entered into (I) by Holding or any of its Subsidiaries
-
prior to the Acquisition that remains outstanding in any part on or after the
Acquisition, (II) by Holding or any of its Subsidiaries in connection with the
--
Acquisition, or the financing of the Acquisition, or (III) otherwise from time
---
to time in connection with the operations of Holding or any of its Subsidiaries
(such agreements and documents, as each may be amended, modified or supplemented
from time to time, are referred to herein as the "Financing Agreements"), in
--------------------
each case as the same may be amended, modified or supplemented from time to
time, (ii) the payment of such purchase price would violate any of the terms or
--
provisions of the Certificate of Incorporation of the Company or (iii) the
---
Company has no funds legally available therefor under the laws of the state of
Delaware.
(b) Delay of Purchase. In the event that the payment of the purchase
-----------------
price for any Covered Options by the Company otherwise permitted under Section
5(c) is prevented solely by the terms of Section 10(a), (i) the payment of such
-
purchase price will be postponed and will be made without the application of
further conditions or impediments (other than as set forth in Section 5 hereof
or in this Section 10) at the first opportunity thereafter when the Company has
funds legally available therefor and when the payment of such purchase price
will not result in any default, event of default by Holding or any of its
Subsidiaries or violation under any of the Financing Agreements or in a
violation of any term or provision of the Certificate of Incorporation of the
Company and (ii) the Grantee's right to receive payment of such purchase price
--
shall rank against other similar rights with respect to shares of Common Stock
or options in respect thereof according to priority in time of the effective
date of the event giving rise to any such right, provided that any such right as
--------
to which a common date determines priority shall be of equal priority and shall
share pro rata in any purchase payments made pursuant to clause (i) above.
(c) Purchase Price Adjustment. In the event that the payment of the
-------------------------
purchase price for any Covered Options is delayed pursuant to this Section 10,
the purchase price for such Covered Options when the purchase price is
eventually paid as contemplated by Section 10(b) shall be the sum of (a) the
-
Purchase Price of such Covered Options, as determined in accordance with Section
5(f) at the time that the Purchase Price would have been paid but for the
operation of this Section 10, plus (b) an amount equal to interest on such
-
Purchase Price for the period from the date on which the Purchase Price
18
<PAGE>
would have been paid but for the operation of this Section 10 to the date on
which such Purchase Price is actually paid (the "Delay Period"), at an annual
------------
rate of interest equal to the average annual cost to Holding and its
Subsidiaries of their bank indebtedness obligations outstanding during the Delay
Period or, if there are no such obligations outstanding, one percentage point
greater than the average annual prime rate charged during the Delay Period by
Chase Bank or such other nationally recognized bank designated by the Company.
11. No Rights as Stockholder. The Grantee shall have no voting or
------------------------
other rights as a stockholder of Holding with respect to any Shares covered by
the Options until the exercise of the Options and the issuance of a certificate
or certificates to the Grantee for such Shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the issuance of
such certificate or certificates.
12. Capital Adjustments. The number and price of the Shares covered
-------------------
by the Options shall be proportionately adjusted to reflect any stock dividend,
stock split or share combination of the Common Stock or any recapitalization of
Holding. Subject to any required action by the stockholders of Holding and
Section 9 hereof, in any merger, consolidation, reorganization, exchange of
shares, liquidation or dissolution, the Options shall pertain to the securities
and other property, if any, that a holder of the number of shares of Common
Stock covered by the Options would have been entitled to receive in connection
with such event.
13. Miscellaneous.
-------------
(a) Notices. All notices and other communications required or
-------
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such delivery, to Holding, the CD&R Fund or the
Grantee, as the case may be, at the following addresses or to such other address
as Holding, the CD&R Fund or the Grantee, as the case may be, shall specify by
notice to the others:
(i) if to the Company, to it at:
Jafra Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, CA 91361
Attention: General Counsel
---------
(ii) if to the Grantee, to the Grantee at the address set forth on the
signature page hereof, with a copy to:
Stephan G. Bachelder & Associates, P.A.
22 Free Street
Portland, Maine 04101
Attention: Stephan G. Bachelder, Esq.
---------
19
<PAGE>
(iii) if to the CD&R Fund, to:
Clayton, Dubilier & Rice Fund V
Limited Partnership
Foulkstone Plaza, Suite 102
1403 Foulk Road
Wilmington, Delaware 19803
Attention: Joseph L. Rice, III
---------
All such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof, provided that the party giving such notice or communication
--------
shall have attempted to telephone the party or parties to which notice is being
given during regular business hours on or before the day such notice or
communication is being sent, to advise such party or parties that such notice is
being sent. Copies of any notice or other communication given under this
Agreement shall also be given to:
Clayton, Dubilier & Rice, Inc.
375 Park Avenue
New York, New York 10152
Attention: Donald J. Gogel
---------
and
Debevoise & Plimpton
875 Third Avenue
New York, New York 10022
Attention: Paul S. Bird, Esq.
---------
The CD&R Fund also shall be given a copy of any notice or other communication
between the Grantee and the Company under this Agreement at its address as set
forth above.
(b) Binding Effect; Benefits. This Agreement shall be binding upon
------------------------
and inure to the benefit of the parties to this Agreement and their respective
successors and assigns. Except as provided in Section 5, nothing in this
Agreement, express or implied, is intended or shall be construed to give any
person other than the parties to this Agreement or their respective successors
or assigns any legal or equitable right, remedy or claim under or in respect of
any agreement or any provision contained herein.
(c) Waiver; Amendment.
-----------------
(i) Waiver. Any party hereto or beneficiary hereof may by written
------
notice to the other parties (A) extend the time for the performance of any
-
of the obligations or other actions of the other parties under this
Agreement, (B) waive compliance with any of the conditions or covenants of
-
the other parties contained in this Agreement and (C) waive or modify
-
performance of any of the obligations of the other parties under this
Agreement, provided that any waiver of the provisions of Section 5 must be
--------
consented to in writing by the CD&R Fund. Except as
20
<PAGE>
provided in the preceding sentence, no action taken pursuant to this
Agreement, including, without limitation, any investigation by or on behalf
of any party or beneficiary, shall be deemed to constitute a waiver by the
party or beneficiary taking such action of compliance with any
representations, warranties, covenants or agreements contained herein. The
waiver by any party hereto or beneficiary hereof of a breach of any
provision of this Agreement shall not operate or be construed as a waiver
of any preceding or succeeding breach and no failure by a party or
beneficiary to exercise any right or privilege hereunder shall be deemed a
waiver of such party's or beneficiary's rights or privileges hereunder or
shall be deemed a waiver of such party's or beneficiary's rights to
exercise the same at any subsequent time or times hereunder.
(ii) Amendment. This Agreement may not be amended, modified or
---------
supplemented orally, but only by a written instrument executed by the
Grantee and the Company, and (in the case of any amendment, modification or
supplement that adversely affects the rights of the CD&R Fund hereunder)
consented to by the CD&R Fund in writing. The parties hereto acknowledge
that the Company's consent to an amendment or modification of this
Agreement may be subject to the terms and provisions of the Financing
Agreements.
(d) Assignability. Neither this Agreement nor any right, remedy,
-------------
obligation or liability arising hereunder or by reason hereof shall be
assignable by Holding or the Grantee without the prior written consent of the
other parties and the CD&R Fund. The CD&R Fund may assign from time to time all
or any portion of its rights under Section 5 to one or more Affiliates
designated by it.
(e) Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
--------------
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD REQUIRE APPLICATION OF THE LAW OF
ANOTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE CORPORATE LAW OF THE STATE
OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.
(f) Jurisdiction. The Grantee hereby irrevocably and unconditionally
------------
submits, for him or her self and his or her property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States
of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out or of relating to this Agreement or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State
court or, to the extent permitted by law, in such Federal court. Each of the
parties hereby agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement
shall affect any right that the Company may otherwise have to bring any action
or proceeding relating to this Agreement against the Grantee or his or her
properties in the courts of any jurisdiction. The Grantee hereby irrevocably and
unconditionally waives, to the fullest extent he or she may legally and
effectively do so, any objection that he or she may now or hereafter have
21
<PAGE>
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any New York or Federal court. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.
(g) Section and Other Headings, etc. The section and other headings
-------------------------------
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.
(h) Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.
22
<PAGE>
IN WITNESS WHEREOF, the Company and the Grantee have executed this
Agreement as of the date first above written.
JAFRA COSMETICS INTERNATIONAL, INC.
By:___________________________________________________
Name:
Title:
THE GRANTEE:
Name
By:__________________________________________________
as Attorney-in-Fact
Name:
Address of the Grantee:
Service Options Performance Options
--------------- -------------------
Total Number of Shares of
Common Stock for the
Purchase of Which
Options have Been
Granted:
<PAGE>
EXHIBIT 10.6
AMENDED AND RESTATED STOCK PURCHASE WARRANT AGREEMENT, dated as of
September 30, 1998, by and between CDRJ Investments (Lux) S.A., a Luxembourg
societe anonyme (the "Company") and Jafra Cosmetics International, Inc., a
-------
Delaware corporation ("JCI").
---
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, JCI is an indirect wholly-owned subsidiary of the Company;
WHEREAS, the Board of Directors of the Company (the "Board"), in
-----
consultation with the Board of Directors of JCI (the "JCI Board"), has
---------
determined that it is in the best interest of the Company and its shareholders
for JCI to grant options to purchase from JCI an aggregate of up to 104,282
shares of the Company's Class A voting shares, par value $2.00 per share (the
"Common Stock"), to select members of the management of the Company or its
- -------------
Subsidiaries (as defined herein) in order to motivate and align the interests of
such individuals with those of the Company's shareholders, and in connection
therewith, the JCI Board has established the Jafra Cosmetics International, Inc.
Stock Incentive Plan, as amended (as the same may be further amended from time
to time, the "Plan"); and
----
WHEREAS, to enable JCI to obtain the shares of Common Stock to be
delivered pursuant to options granted under the Plan, the Company and JCI
entered into a Stock Purchase Warrant Agreement, dated as of April 30, 1998,
pursuant to which JCI may purchase an aggregate of 88,000 shares of Common Stock
from the Company and the Company and JCI desire to increase the aggregate number
of shares of Common Stock by the Warrant and to enter into this Amended and
Restated Warrant Agreement (the "Warrant" or the "Agreement") pursuant to which
------- ---------
JCI may purchase an aggregate of 104,282 shares of Common Stock from the
Company;
NOW, THEREFORE, to implement the foregoing and in consideration of the
mutual promises, covenants and agreements contained herein, the parties hereto
hereby agree as follows:
1. Exercise of Warrant. (a) This Warrant may be exercised by JCI,
-------------------
in whole or in part, during normal business hours on any Business Day, by
delivery to the Company of a written form of subscription acceptable to the
Company duly executed by such Holder, delivered to the Company at its principal
office, accompanied by payment, in cash or readily available funds payable to
the order of the Company, in the amount (such amount referred to herein as the
"Exercise Price") equal to (i) the product of (A) the
- --------------- - -
<PAGE>
number of shares of Common Stock to be purchased as specified in such written
form of subscription (the "Exercise Shares") and (B) the Purchase Price (as
--------------- -
defined herein), plus any capital or other similar tax imposed in connection
----
with the issuance of the Exercise Shares, and the Company shall deliver to JCI a
certificate or certificates representing the Exercise Shares bearing such
legends as the Company shall determine appropriate. Subject to Section 2, the
cumulative maximum aggregate number of shares of Common Stock that may be
purchased by JCI pursuant to this Warrant is 104,282 shares.
(b) As used herein, the following terms shall have the following
meanings:
"Applicable Share Valuation" shall mean the annual valuation of the
--------------------------
Common Stock performed as of the last day of the last Fiscal Year ending
prior to the determination date by an independent valuation firm chosen by
the Board, except that, in the case of a determination date occurring
during the fourth fiscal quarter of any Fiscal Year beginning with the
fourth quarter of the 1998 Fiscal Year, the term "Applicable Share
Valuation" shall mean the annual valuation of the Common Stock performed as
of the last day of such fourth fiscal quarter by an independent valuation
firm chosen by the Board. Such annual valuations shall be performed as
promptly as practicable following the end of each Fiscal Year, beginning
with the 1998 Fiscal Year.
"Business Day" shall mean any day other than a Saturday or a Sunday or
------------
a day on which commercial banking institutions in The City of New York are
authorized by law to be closed.
"Purchase Price" shall mean, as of any date of determination, the fair
--------------
market value on such date of a share of Common Stock as determined in good
faith by the Board. In making a determination of fair market value, the
Board shall give due consideration to such factors as it deems appropriate,
including, without limitation, the earnings and certain other financial and
operating information of the Company and its subsidiaries in recent
periods, the potential value of the Company and its subsidiaries as a
whole, the future prospects of the Company and its subsidiaries and the
industries in which they compete, the history and management of the Company
and its subsidiaries, the general condition of the securities markets,
the fair market value of securities of companies engaged in businesses
similar to those of the Company and its subsidiaries and the Applicable
Share Valuation. The determination of fair market value will not give
effect to any restrictions on transfer of the shares of Common Stock or the
fact that such Common Stock would represent a minority interest in the
Company. Notwithstanding the foregoing, following a Public Offering, fair
market value shall mean the average of the high and low trading prices for
a share of Common Stock on the primary
2
<PAGE>
national exchange (including Nasdaq) on which the Common Stock is then
traded on the trading day immediately preceding the date as of which such
fair market value is determined.
"Fiscal Year" shall mean a fiscal year of the Company ending December
-----------
31.
"Public Offering" shall mean the first day as of which sales of Common
---------------
Stock are made to the public in the United States pursuant to an
underwritten public offering of the Common Stock led by one or more
underwriters at least one of which is an underwriter of nationally
recognized standing.
2. Adjustment of Number of Shares of Common Stock. The number and
----------------------------------------------
class of shares shall be adjusted by the Board to reflect any Common Stock
dividend, stock split or share combination or any recapitalization, merger,
consolidation, exchange of shares, liquidation, dissolution or reorganization of
the Company if and to the extent such an adjustment is called for under the
Plan.
3. Restrictions on Transfer. This Warrant may not be transferred or
------------------------
assigned except with the prior written consent of the Company.
4. Reservation of Stock, etc. The Company shall at all times reserve
-------------------------
and keep available, solely for issuance and delivery upon exercise of the
Warrant, the number of shares of Common Stock from time to time issuable upon
exercise of the Warrant at the time outstanding. All shares of Common Stock
shall be duly authorized and, when issued upon such exercise and upon receipt of
the Exercise Price, shall be validly issued and, in the case of shares, fully
paid and nonassessable with no liability on the part of the holders thereof.
5. Requirements of Law. The issuance of shares of Common Stock shall
-------------------
be subject to all applicable laws, rules and regulations, and to such approvals
by any governmental agencies or national or foreign securities exchanges as may
be appropriate or required, as determined by the Board. Notwithstanding any
other provision herein or in the Plan, no share of Common Stock issued upon
exercise of this Warrant if such issuance would result in a violation of
applicable law, including the federal securities laws and any applicable state
or foreign securities laws.
6. Governing Law. THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN
-------------
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT
GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH
3
<PAGE>
PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION).
7. Amendments and Waivers. This Agreement may be amended, and the
----------------------
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company shall have obtained the
written consent to such amendment, action or omission to act, of JCI.
8. Notices. All notices, requests, demands or other communications
-------
provided for hereunder shall be in writing and shall be deemed to have been duly
given to any party (a) when delivered personally (by courier service or
-
otherwise), (b) when delivered by telex and confirmed by receipt of the proper
-
telex answerback, (c) five days after being mailed by first class mail, postage
-
prepaid (registered or certified mail, return receipt requested), (d) when
-
receipt acknowledged, if telecopied, or (e) the next business day after timely
-
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery, at the following addresses (or to such other address as such party may
have designated to the other in writing):
if to the Company, to the Company at:
10, rue Antoine Jans
L-1820 Luxembourg
Luxembourg
if to JCI, to JCI at:
Jafra Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, CA 91361
Facsimile: (805) 449-3256
Telephone: (805) 449-3004
Attention: General Counsel
---------
Copies of any notice or other communication given under the Agreement shall also
be given to:
4
<PAGE>
Clayton, Dubilier & Rice, Inc.
375 Park Avenue
New York, New York 10152
Facsimile: (212) 407-5252
Telephone: (212) 407-5200
Attention: Donald J. Gogel
---------
and
Debevoise & Plimpton
875 Third Avenue
New York, New York 10022
Facsimile: (212) 909-6836
Telephone: (212) 909-6435
Attention: Paul S. Bird, Esq.
---------
Any party may give any notice or other communication in connection herewith
using any other means (including, but not limited to, personal delivery,
messenger service, facsimile, telex or ordinary mail), but no such notice or
other communication shall be deemed to have been duly given unless and until it
is actually received by the individual for whom it is intended.
9. Term. This Agreement shall be effective as of the date hereof and
----
shall continue in effect thereafter until the date that is six months after the
tenth anniversary of the date hereof.
10. Severability. If any provision of this Agreement is inoperative
------------
or unenforceable for any reason, such circumstances shall not have the effect of
rendering the provision in question inoperative or unenforceable in any other
case or circumstance, or of rendering any other provision or provisions herein
contained invalid, inoperative, or un enforceable to any extent whatsoever.
The invalidity of any one or more phrases, sentences, clauses, Sections or
subsections of this Agreement shall not affect the remaining portions of this
Agreement.
11. Headings. The headings contained in this Agreement are for
--------
purposes of convenience only and shall not affect the meaning or interpretation
of this Agreement.
12. Counterparts. This Agreement may be executed in several
------------
counterparts, each of which shall be deemed an original and all of which
together constitute one and the same instrument.
5
<PAGE>
IN WITNESS WHEREOF, each of the undersigned has executed this
Agreement or caused this Agreement to be executed on its behalf as of the date
first written above.
CDRJ INVESTMENTS (LUX) S.A.
By: /s/ Ralph S. Mason, III
-----------------------------
Name: Ralph S. Mason, III
Title: Executive Vice President, Fonde de pouvoir
JAFRA COSMETICS INTERNATIONAL, INC.
By: /s/ Ralph S. Mason, III
-----------------------------
Name: Ralph S. Mason, III
Title: Executive Vice President
6
<PAGE>
EXHIBIT 10.8
MANAGEMENT STOCK SUBSCRIPTION AGREEMENT
---------------------------------------
MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, dated as of
, 1998, between CDRJ Investments (Lux) S.A., a Luxembourg societe anonyme
("Holding"), and the Purchaser whose name appears on the signature page hereof
- ---------
(the "Purchaser").
---------
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, pursuant to and subject to the terms of the Acquisition
Agreement, dated as of January 26, 1998, as amended, by and among Holding, The
Gillette Company ("Gillette") and the other parties thereto, Holding acquired,
--------
and/or caused certain of its Subsidiaries (as defined herein) to acquire,
substantially all of the assets of the worldwide Jafra cosmetics business of
Gillette on April 30, 1998 (the "Acquisition");
-----------
WHEREAS, in connection with the Acquisition and to motivate key
employees of Holding and its Subsidiaries, the Board of Directors (the "Board")
-----
of Jafra Cosmetics International, Inc., a Delaware corporation (formerly known
as CDRJ Acquisition Corporation) and an indirect wholly-owned subsidiary of
Holding ("JCI") has, in consultation with the Board of Directors of Holding (the
---
"Holding Board"), adopted the Amended and Restated Jafra Cosmetics International
-------------
Stock Incentive Plan (as the same may be amended from time to time, the "Stock
-----
Incentive Plan");
- --------------
WHEREAS, JCI (the "Employer"), and the Purchaser have entered into an
--------
Employment Agreement, dated as of Employment Agreement Date (as the same may be
amended from time to time, the "Employment Agreement"), providing for, among
--------------------
other things, the sale to the Purchaser of shares of the Class A voting shares,
par value $2.00 per share, of Holding (the "Common Stock");
------------
WHEREAS, at the time of and shortly following the Acquisition, Holding
has issued or will issue and sell an aggregate of up to 39,340 shares of Common
Stock to certain executive officers and other key employees of Holding or its
Subsidiaries (the "Management Investors") pursuant to the terms of substantially
--------------------
identical management stock subscription agreements between Holding and each such
Management Investor and the Stock Incentive Plan and pursuant to the exemption
from the registration require-
<PAGE>
ments of the Securities Act of 1933, as amended, provided by Rule 701 or
Regulation D thereunder;
WHEREAS, the terms of the offering of the shares of Common Stock and
the grant of options to purchase shares of Common Stock to the Management
Investors (the "Offering") are set forth in a Confidential Offering Memorandum,
--------
dated September 10, 1998 (the "Offering Memorandum"), a copy of which has been
-------------------
furnished to the Purchaser;
WHEREAS, the Purchaser desires to subscribe for and purchase from
Holding the aggregate number of shares of Common Stock set forth on the
signature page hereof (each a "Share" and, collectively, the "Shares"), at a
----- ------
purchase price of $100 per share;
WHEREAS, Holding desires to sell the Shares to the Purchaser on the
terms and subject to the conditions set forth herein.
NOW, THEREFORE, to implement the foregoing and in consideration of the
mutual promises, covenants and agreements contained herein, the parties hereto
hereby agree as follows:
1. Purchase and Sale of Common Stock.
---------------------------------
(a) Purchase of Common Stock. Subject to all of the terms and
------------------------
conditions of this Agreement, the Purchaser hereby subscribes for and shall
purchase, and Holding shall sell to the Purchaser, the Shares, at a purchase
price of $100 per Share, at the Closing provided for in Section 2(a) hereof.
Notwithstanding anything in this Agreement to the contrary, Holding shall have
no obligation to sell any shares of Common Stock (including the Shares) to (x)
-
any person who will not be an employee of Holding or its Subsidiary immediately
following the Closing at which such shares of Common Stock are to be sold or (y)
-
any person who is a resident of a jurisdiction in which the sale of Common Stock
to such person would constitute a violation of the securities, "blue sky" or
other laws of such jurisdiction.
(b) Consideration. Subject to all of the terms and conditions of
-------------
this Agreement, the Purchaser shall deliver to Holding at the Closing referred
to in Section 2(a) hereof, immediately available funds in an amount equal to the
aggregate purchase price for the Shares to be purchased at such Closing set
forth on the signature page hereof.
2
<PAGE>
2. Closing.
-------
(a) Time and Place. Except as otherwise mutually agreed by Holding
--------------
and the Purchaser, the closing of the purchase and sale of the Shares pursuant
to this Agreement shall be held at the offices of Debevoise & Plimpton, 875
Third Avenue, New York, New York at 10:00 a.m. (New York time) on or about
, 1998 (the "Closing").
-------
(b) Delivery by the Purchaser. At the Closing, the Purchaser shall
-------------------------
deliver to Holding the consideration referred to in Section 1(b) hereof.
(c) Delivery by Holding. At the Closing, Holding shall deliver to
-------------------
the Purchaser (i) a receipt for the consideration received from the Purchaser
-
and (ii) a stock certificate or an undertaking by Holding to obtain the issuance
--
of a stock certificate registered in the Purchaser's name and representing the
Shares following the completion of the actions to be taken under Section 2(d),
which certificate shall bear the legends set forth in Section 3(b).
(d) Actions Under Luxembourg Law. Holding shall cause its duly
----------------------------
authorized representatives to record the capital increase represented by the
purchase of the Shares by the Purchaser in accordance with Luxembourg law and
enter the issuance of Purchaser's Shares in the share register of Holding as of
the date of the Closing.
3. Purchaser's Representations, Warranties and Covenants.
-----------------------------------------------------
(a) Investment Intention. The Purchaser represents and warrants that
--------------------
the Purchaser is acquiring the Shares solely for the Purchaser's own account for
investment and not with a view to or for sale in connection with any
distribution thereof. The Purchaser agrees that the Purchaser will not,
directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise
dispose of any of the Shares (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of any Shares), except in compliance with the
Securities Act of 1933, as amended (the "Securities Act"), and the rules and
--------------
regulations of the Securities and Exchange Commission (the "Commission")
----------
thereunder, and in compliance with applicable state securities or "blue sky"
laws and foreign securities laws, if any. The Purchaser further understands,
acknowledges and agrees that none of the Shares may be transferred, sold,
pledged, hypothecated or otherwise disposed of (i) unless the provisions of
-
Sections 4 through 8 hereof, inclusive, shall have been complied with or have
expired, (ii) unless (A) such disposition is pursuant to an effective
-- -
registration statement under the Securities Act, (B) the Purchaser shall have
-
delivered to Holding an opinion of counsel, which opinion and counsel shall be
reasonably
3
<PAGE>
satisfactory to Holding, to the effect that such disposition is exempt from the
provisions of Section 5 of the Securities Act or (C) a no-action letter from
-
the Commission, reasonably satisfactory to Holding, shall have been obtained
with respect to such disposition and (iii) unless such disposition is pursuant
---
to registration under any applicable state or foreign securities laws or an
exemption therefrom.
(b) Legends. The Purchaser acknowledges that the certificate or
-------
certificates representing the Shares shall bear the following legends:
"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
PROVISIONS OF A MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, DATED AS OF
, 1998, AND NEITHER THIS CERTIFICATE NOR THE SHARES
REPRESENTED BY IT ARE ASSIGNABLE OR OTHERWISE TRANSFERABLE EXCEPT IN
ACCORDANCE WITH THE PROVISIONS OF SUCH MANAGEMENT STOCK SUBSCRIPTION
AGREEMENT, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF THE
CURRENT FORM OF WHICH IS ON FILE WITH THE SECRETARY OF THE ADVISORY
COMMITTEE OF HOLDING. THE SHARES REPRESENTED BY THIS CERTIFICATE ARE
ENTITLED TO THE BENEFITS OF AND ARE BOUND BY THE OBLIGATIONS SET FORTH
IN A REGISTRATION AND PARTICIPATION AGREEMENT, DATED AS OF APRIL 30,
1998, AMONG HOLDING AND CERTAIN STOCKHOLDERS OF HOLDING, AS THE SAME
MAY BE AMENDED FROM TIME TO TIME, A COPY OF THE CURRENT FORM OF WHICH
IS ON FILE WITH THE SECRETARY OF THE ADVISORY COMMITTEE OF HOLDING."
"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE OR NON-U.S.
SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A) SUCH DISPOSITION
- -
IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, (B) THE HOLDER HEREOF SHALL HAVE
-
DELIVERED TO HOLDING AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL
SHALL BE REA-
4
<PAGE>
SONABLY SATISFACTORY TO HOLDING, TO THE EFFECT THAT SUCH DISPOSITION
IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF SUCH ACT OR (C) A NO-
-
ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION, REASONABLY
SATISFACTORY TO COUNSEL FOR HOLDING, SHALL HAVE BEEN OBTAINED WITH
RESPECT TO SUCH DISPOSITION AND (ii) SUCH DISPOSITION IS PURSUANT TO
--
REGISTRATION UNDER ANY APPLICABLE STATE AND NON-U.S. SECURITIES LAWS
OR AN EXEMPTION THEREFROM. IF THE PURCHASER IS A CITIZEN OR RESIDENT
OF ANY JURISDICTION OTHER THAN THE UNITED STATES, OR THE PURCHASER
DESIRES TO EFFECT ANY TRANSFER IN ANY SUCH JURISDICTION, THEN, IN
ADDITION TO THE FOREGOING, COUNSEL FOR THE PURCHASER (WHICH COUNSEL
SHALL BE REASONABLY SATISFACTORY TO HOLDING) SHALL HAVE FURNISHED
HOLDING WITH AN OPINION OR OTHER ADVICE REASONABLY SATISFACTORY TO
HOLDING TO THE EFFECT THAT SUCH TRANSFER WILL COMPLY WITH THE
SECURITIES LAWS OF SUCH JURISDICTION."
(c) Securities Law Matters. The Purchaser acknowledges receipt of
----------------------
advice from Holding that (i) the offer and sale of the Shares hereby have not
-
been registered under the Securities Act or any state or foreign securities or
"blue sky" laws, (ii) it is not anticipated that there will be any public market
--
for the Shares, (iii) the Shares must be held indefinitely and the Purchaser
---
must continue to bear the economic risk of the investment in the Shares unless
there is a public market for the Shares and, to the extent required under the
Securities Act, the Shares are registered for resale under the Securities Act
and such state laws or an exemption from registration is available, (iv) Rule
--
144 promulgated under the Securities Act ("Rule 144") is not presently available
--------
with respect to sales of any securities of Holding, and Holding has made no
covenant to make Rule 144 available, (v) when and if the Shares may be disposed
-
of without registration in reliance upon Rule 144, such disposition by an
affiliate of Holding, within the meaning of Rule 405, can be made only in
limited amounts in accordance with the terms and conditions of Rule 144, (vi)
--
Holding does not plan to file reports with the Commission or make public
information concerning Holding available unless required to do so by law or the
terms of its Financing Agreements (as defined below), (vii) if the exemption
---
afforded by Rule 144 is not available, sales of the Shares may be difficult to
effect because of the absence of public information concerning Holding, (viii) a
----
restrictive legend in the form heretofore set forth shall be placed on the
certificates representing the Shares and (ix) a notation shall be made in the
--
appropriate
5
<PAGE>
records of Holding indicating that the Shares are subject to restrictions on
transfer set forth in this Agreement and, if Holding should in the future engage
the services of a stock transfer agent, appropriate stop-transfer restrictions
will be issued to such transfer agent with respect to the Shares.
(d) Compliance with Rule 144. If any of the Shares are to be
------------------------
disposed of in accordance with Rule 144, the Purchaser shall transmit to Holding
an executed copy of Form 144 (if required by Rule 144) no later than the time
such form is required to be transmitted to the Commission for filing and such
other documentation as Holding may reasonably require to assure compliance with
Rule 144 in connection with such disposition.
(e) Ability to Bear Risk. The Purchaser represents and warrants that
--------------------
(i) the financial situation of the Purchaser is such that the Purchaser can
-
afford to bear the economic risk of holding the Shares for an indefinite period
and (ii) the Purchaser can afford to suffer the complete loss of the Purchaser's
--
investment in the Shares.
(f) Access to Information. The Purchaser represents and warrants
---------------------
that (i) the Purchaser has carefully reviewed the Offering Memorandum and the
-
other materials furnished to the Purchaser in connection with the transaction
contemplated hereby, (ii) the Purchaser has been granted the opportunity to ask
--
questions of, and receive answers from, representatives of Holding concerning
the terms and conditions of the purchase of the Shares and to obtain any
additional information that the Purchaser deems necessary to verify the accuracy
of the information contained in such materials and (iii) the Purchaser is, and
---
will be at the time of the Closing, an officer or key employee of Holding or one
of its Subsidiaries.
(g) Registration and Participation Agreement. The Purchaser
----------------------------------------
acknowledges and agrees that the Purchaser shall be entitled to the rights and
subject to the obligations created under the Registration and Participation
Agreement, dated as of April 30, 1998, among Holding and certain other
shareholders of Holding (as the same may be amended from time to time, the
"Registration and Participation Agreement"), and the Shares shall be deemed to
- -----------------------------------------
be "registrable securities," as defined in the Registration and Participation
Agreement, in each case, to the extent provided therein.
(h) Restrictions on Sale upon Public Offering. The Purchaser
-----------------------------------------
acknowledges and agrees that, in the event that Holding files a registration
statement under the Securities Act with respect to an underwritten public
offering of any shares of its capital stock, the Purchaser will not effect any
public sale or distribution of any shares of Common Stock (other than as part of
such underwritten public offering), including but
6
<PAGE>
not limited to, pursuant to Rule 144 or Rule 144A under the Securities Act,
during the 20 days prior to and the 180 days after the effective date of such
registration statement. The Purchaser further understands and acknowledges that
any sale, transfer or other disposition of the Shares by him following any
underwritten public offering of the Common Stock will be subject to compliance
with, and may be limited under, the federal securities laws and/or state "blue
sky" or non-U.S. securities laws.
(i) Section 83(b) Election. The Purchaser agrees that, within 20
----------------------
days after a Closing, the Purchaser shall give notice to Holding indicating
whether the Purchaser has made or intends to make an election pursuant to
section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to
the Shares purchased at such Closing. The Purchaser further acknowledges and
agrees that, in all circumstances, the Purchaser will be solely responsible for
any and all tax liabilities payable by the Purchaser in connection with the
Purchaser's purchase or receipt of the Shares or, if the Purchaser is subject to
United States federal income tax, attributable to the Purchaser's making or
failing to make such an election under section 83(b) of the Code.
4. Restrictions on Disposition of Shares. Neither the Purchaser nor
-------------------------------------
any of the Purchaser's heirs or representatives shall sell, assign, transfer,
pledge or otherwise directly or indirectly dispose of or encumber any of the
Shares to or with any other person, firm, trust, association, corporation or
entity (including, without limitation, transfers to any other holder of
Holding's capital stock, dispositions by gift, by will, by a corporation as a
distribution in liquidation or by operation of law other than a transfer of
Shares upon the death of the Purchaser by operation of law to the estate of the
Purchaser or by will to the beneficiary named therein, provided that such estate
--------
or beneficiary, whichever is applicable, shall be bound by all of the provisions
of this Agreement), except as provided in Sections 5 through 8 hereof,
inclusive. The restrictions contained in this Section 4 (x) shall terminate on
-
the first date sales of Common Stock are made to the public pursuant to an
underwritten public offering of the Common Stock led by one or more underwriters
at least one of which is an underwriter of nationally recognized standing (a
"Public Offering") and (y) shall not apply to a sale as part of the Public
- ---------------- -
Offering or to a sale as part of a "qualifying sale" within the meaning of
Section 4 of the Registration and Participation Agreement.
5. Options of Holding and the CD&R Fund Upon Proposed Disposition.
--------------------------------------------------------------
(a) Rights of First Refusal. If the Purchaser desires to accept an
-----------------------
offer (which must be in writing and for cash, be irrevocable by its terms for at
least 60 days and be a bona fide offer as determined in good faith by the
Holding Board) from any prospective purchaser to purchase all or any part of the
Shares at any time owned by the
7
<PAGE>
Purchaser, the Purchaser shall give notice in writing to Holding and the
Clayton, Dubilier & Rice Fund V Limited Partnership (the "CD&R Fund") (i)
--------- -
designating the number of Shares proposed to be sold (the "Offer Shares"),
------------
(ii) naming the prospective purchaser of such Shares and (iii) specifying the
-- ---
price (the "Offer Price") at and terms (the "Offer Terms") upon which the
----------- -----------
Purchaser desires to sell the same. During the 30-day period following receipt
of such notice by Holding and the CD&R Fund (the "First Refusal Period"),
--------------------
Holding shall have the right to purchase from the Purchaser the Offer Shares, at
the Offer Price and on the Offer Terms. Holding hereby undertakes to use
reasonable efforts to act as promptly as practicable following such notice to
determine whether it shall elect to exercise such right. If Holding fails to
exercise its right to purchase the Offer Shares within the First Refusal Period,
the CD&R Fund shall have the right to purchase the Offer Shares, at the Offer
Price and on the Offer Terms, at any time during the period beginning on the
earlier of (x) the end of the First Refusal Period and (y) the date of
- -
receipt by the CD&R Fund of written notice that Holding has elected not to
exercise its right to purchase the Offer Shares and ending 30 days thereafter
(the "Second Refusal Period"). The rights provided hereunder shall be exercised
---------------------
by irrevocable written notice to the Purchaser given at any time during the
applicable period. If such right to purchase the Offer Shares is exercised,
Holding or the CD&R Fund, as the case may be, shall deliver to the Purchaser a
certified or bank check for the Offer Price, payable to the order of the
Purchaser, against delivery of certificates or other instruments representing
the Offer Shares so purchased, appropriately endorsed by the Purchaser. If such
right shall not have been exercised prior to the expiration of the Second
Refusal Period, then at any time during the 30 days following the expiration of
the Second Refusal Period, the Purchaser may sell the Offer Shares to (but only
to) the intended purchaser named in the Purchaser's notice to Holding and the
CD&R Fund at the Offer Price and on the Offer Terms specified in such notice,
free of all restrictions or obligations imposed by, and free of any rights or
benefits set forth in this Agreement, provided that such intended purchaser
--------
shall have agreed in writing, pursuant to an instrument of assumption
satisfactory in substance and form to Holding, to make and be bound by the
representations, warranties and covenants set forth in Section 3 hereof, other
than those set forth in Sections 3(f)(i), 3(f)(iii) and 3(i) and other than
references to Sections 4 through 8 of this Agreement contained in Section
3(a)(i). The right of the Purchaser to sell the Offer Shares set forth in this
Section 5(a), subject to the rights of first refusal set forth in this Section
5(a), shall be suspended during the Option Periods referred to in Section 6
hereof, but the provisions of Section 6 shall not otherwise restrict the ability
of the Purchaser to sell the Offer Shares, whether before or after such Option
Periods, pursuant to the terms and subject to the restrictions set forth in this
Section 5(a).
(b) Public Offering. In the event that a Public Offering has been
---------------
consummated, the Purchaser may sell his Shares without complying with Section
5(a)
8
<PAGE>
and this Section 5 shall not apply to a sale to the underwriters as part of
the Public Offering or at any time thereafter.
6. Options Effective on Termination of Employment or Unforeseen
------------------------------------------------------------
Personal Hardship of the Purchaser.
- ----------------------------------
(a) Termination of Employment. If the Purchaser's active employment
-------------------------
with Holding or any Subsidiary thereof that employs the Purchaser is terminated
for any reason whatsoever, Holding shall have an option to purchase all or a
portion of the Shares then held by the Purchaser (or, if his employment was
terminated by his death, his estate) and shall have 60 days from the date of the
Purchaser's termination of employment (such 60-day period being hereinafter
referred to as the "First Option Period") during which to give notice in writing
-------------------
to the Purchaser (or his estate) of its election to exercise or not to exercise
such option, in whole or in part. Holding hereby undertakes to use reasonable
efforts to act as promptly as practicable following such termination to make
such election. If Holding fails to give notice that it intends to exercise such
option within the First Option Period or Holding gives notice that it does not
intend to exercise such option or that it intends to exercise such option with
respect to only a portion of the Shares, the CD&R Fund shall have an option to
purchase all or a portion of the Shares then held by the Purchaser (or his
estate) that will not be repurchased by Holding and shall have until the
expiration of the earlier of (x) 60 days following the end of the First Option
-
Period or (y) 60 days from the date of receipt by the CD&R Fund of written
-
notice from Holding indicating whether it will exercise its option to purchase
any of the Shares (such 60-day period being hereinafter referred to as the
"Second Option Period"), to give notice in writing to the Purchaser (or his
- ---------------------
estate) of the CD&R Fund's exercise of its option to purchase all or a portion
of the Shares that will not be repurchased by Holding. If Holding and the CD&R
Fund do not exercise their respective options to purchase, collectively, all of
the Shares pursuant to this subsection, (i) the Purchaser (or his estate) shall
-
be entitled to retain any Shares which will not be acquired by Holding or the
CD&R Fund, subject to all of the provisions of this Agreement (including without
limitation Section 4) and (ii) if the Purchaser's active employment with Holding
--
and each of its Subsidiaries that employs the Purchaser is terminated (A) by
-
such employer or employers without Cause, (B) by the Purchaser by Retirement at
-
Normal Retirement Age, (C) by reason of the Disability or death of the Purchaser
-
or (D) by the Purchaser for Good Reason, then on notice from the Purchaser (or
-
his estate) in writing and delivered to Holding within 30 days following the
earlier of (i) the last day of the Second Option Period and (ii) the date the
- --
CD&R Fund delivers written notice to the Purchaser indicating whether the CD&R
Fund will exercise its option to purchase any of the Shares, Holding shall
purchase all (but not less than all) of the Shares then held by the Purchaser
9
<PAGE>
(or his estate). All purchases pursuant to this Section 6(a) by Holding or the
CD&R Fund shall be for a purchase price and in the manner prescribed by Section
7 hereof.
(b) Unforeseen Personal Hardship. In the event that the Purchaser,
----------------------------
while in the employment of Holding or one of its Subsidiaries, experiences
Unforeseen Personal Hardship, the Holding Board will carefully consider any
request by the Purchaser that Holding repurchase the Purchaser's Shares at a
price determined in accordance with Section 7 hereof, but Holding shall have no
obligation to repurchase such Shares. The Holding Board shall consider such
request with respect to Unforeseen Personal Hardship as soon as practicable
after receipt by Holding of a written request by the Purchaser, such request to
include sufficient details of the Purchaser's Unforeseen Personal Hardship to
permit the Holding Board to review the request and the circumstances in an
informed manner.
(c) Certain Definitions. As used in this Agreement the following
-------------------
terms shall have the following meanings:
(i) "Cause" shall have the meaning assigned to such term in the
-----
Employment Agreement.
(ii) "Good Reason" shall have the meaning assigned to such term in
-----------
the Employment Agreement.
(iii) "Disability" shall have the meaning assigned to such term in the
----------
Employment Agreement.
(iv) "Retirement at Normal Retirement Age" shall mean retirement from
-----------------------------------
employment with Holding and any Subsidiary thereof that employs the Purchaser at
age 65 or later.
(v) "Unforeseen Personal Hardship" shall mean financial hardship
----------------------------
arising from (x) extraordinary medical expenses or other expenses directly
-
related to illness or disability of the Purchaser, a member of the Purchaser's
immediate family or one of the Purchaser's parents or (y) payments necessary or
-
required to prevent the eviction of the Purchaser from the Purchaser's principal
residence or foreclosure on the mortgage on that residence. The Holding Board's
reasoned and good faith determination of Unforeseen Personal Hardship shall be
binding on Holding and the Purchaser.
(d) Notice of Termination. Holding shall give written notice of any
---------------------
termination of the Purchaser's employment to the CD&R Fund, except that if such
10
<PAGE>
termination (if other than as a result of death) is by the Purchaser, the
Purchaser shall give written notice of such termination to Holding and Holding
shall give written notice of such termination to the CD&R Fund.
(e) Public Offering. In the event that a Public Offering has been
---------------
consummated, neither Holding nor the CD&R Fund shall have any right to purchase
the Shares pursuant to this Section 6 and this Section 6 shall not apply to a
sale as part of the Public Offering.
7. Determination of the Purchase Price; Manner of Payment.
------------------------------------------------------
(a) Purchase Price. (i) For the purposes of any purchase of the
--------------
Shares pursuant to Section 6, and subject to Section 11(c), the purchase price
per Share to be paid to the Purchaser (or his estate) for each Share (the
"Purchase Price") shall be the Fair Market Value (determined in accordance with
- ---------------
paragraph (ii) below) of such Share as of the effective date of the termination
of employment or determination of financial hardship, as the case may be, that
gives rise to the right or obligation to repurchase (such date, the
"Determination Date"), provided that if the Purchaser's employment is terminated
- ------------------- --------
by Holding or any Subsidiary thereof that employs the Purchaser for Cause, the
Purchase Price for such Shares shall be the lesser of (i) the Fair Market Value
-
of such Shares as of the effective date of such termination of employment and
(ii) the price at which the Purchaser purchased such Shares from Holding.
- ---
(ii) Whenever determination of the Fair Market Value of the Shares is
required to be determined under the terms of this Agreement, such Fair Market
Value shall be such amount as is determined in good faith by the Holding Board
in accordance with this subsection (ii). In making a determination of Fair
Market Value, the Holding Board shall give due consideration to such factors as
it deems appropriate, provided that such factors shall include, without
limitation, the earnings and certain other financial and operating information
of Holding and its Subsidiaries in recent periods, the potential value of
Holding and its Subsidiaries as a whole, the future prospects of Holding and its
Subsidiaries and the industries in which they compete, the history and
management of Holding and its Subsidiaries, the general condition of the
securities markets, the fair market value of securities of companies engaged in
businesses similar to those of Holding and its Subsidiaries and the Applicable
Share Valuation (as defined below). The determination of Fair Market Value will
not give effect to any restrictions on transfer of the Shares or the fact that
such Shares would represent a minority interest in Holding. For purposes of this
Agreement, the term "Applicable Share Valuation" shall mean the annual valuation
--------------------------
of the Common Stock performed as of the last day of the last fiscal year of
Holding ending prior to the Determination Date by an independent valuation firm
11
<PAGE>
chosen by the Holding Board, except that, in the case of a Determination Date
occurring during the fourth fiscal quarter of any fiscal year of Holding
beginning with the fourth quarter of the 1998 fiscal year of Holding, the term
"Applicable Share Valuation" shall mean the annual valuation of the Common Stock
performed as of the last day of such fourth fiscal quarter by an independent
valuation firm chosen by the Holding Board. Such annual valuations shall be
performed as promptly as practicable following the end of each fiscal year of
Holding, beginning with the 1998 fiscal year of Holding. The Fair Market Value
as reasonably determined in good faith by the Holding Board and in the absence
of fraud shall be binding and conclusive upon all parties hereto and the CD&R
Fund. If Holding subdivides (by any stock split, stock dividend or otherwise)
the Common Stock into a greater number of shares, or combines (by reverse stock
split or otherwise) the Common Stock into a smaller number of shares after the
Holding Board shall have determined the Purchase Price for the Shares (without
taking into consideration such subdivision or combination) and prior to the
consummation of the purchase, the Purchase Price (including any minimum or
maximum Purchase Price specified herein or in effect as a result of a prior
adjustment) shall be appropriately adjusted to reflect such subdivision or
combination and the Holding Board's determination as to any such adjustment
shall be binding and conclusive on all parties hereto and the CD&R Fund.
(b) Closing of Purchase; Payment of Purchase Price. Subject to
----------------------------------------------
Section 11, the closing of a purchase pursuant to this Section 6 shall take
place at the principal office of Holding on the tenth business day following
whichever of the following is applicable: (i) the receipt by the Purchaser (or
-
his estate) of the notice of Holding or the CD&R Fund, as the case may be, of
its exercise of its option to purchase any of the Shares pursuant to Section
6(a) or (ii) Holding's receipt of notice from the Purchaser (or his estate)
--
requiring Holding to purchase all of the Shares pursuant to Section 6(a) or
(iii) the Holding Board's determination (which shall be delivered to the
---
Purchaser) that Holding is authorized to purchase Shares as a result of
Unforeseen Personal Hardship pursuant to Section 6(b). At the closing, (i)
-
subject to the proviso below, Holding or the CD&R Fund, as the case may be,
shall pay to the Purchaser (or his estate) cash or immediately available funds
in an amount equal to the Purchase Price and (ii) the Purchaser (or his estate)
--
shall deliver to Holding such certificates or other instruments representing the
Shares so purchased, appropriately endorsed by the Purchaser (or his estate), as
Holding may reasonably require; provided, however, that if the Determination
Date occurs during the first or last fiscal quarter of any fiscal year of
Holding, Holding or the CD&R Fund, as the case may be, may elect to pay the
Purchase Price in two installments. In any such event, (i) at the closing of
-
the purchase of the Shares, Holding or the CD&R Fund, as the case may be, shall
pay to the Purchaser (or his estate) an amount (the "First Installment Amount")
------------------------
equal to 80% of the Fair Market Value of the Shares, determined pursuant to
Section 7(a) hereof on the basis of the most
12
<PAGE>
recent available valuation of the Shares, and (ii) no later than the tenth
--
business day following receipt by Holding of the Applicable Share Valuation,
Holding or the CD&R Fund, as the case may be, shall pay an additional amount to
the Purchaser (or his estate) equal to the sum of (1) the excess (the "Excess
- ------
Payment"), if any, of (A) the Purchase Price for the Shares, over (B)
- ------- - -
the First Installment Amount and (2) interest on the Excess Payment for the
-
period commencing on the closing date of the purchase of the Shares and ending
on the date of payment of such additional amount pursuant to this clause (ii) at
the average annual cost to Holding and its Subsidiaries of its bank indebtedness
obligations outstanding during such period or, if there are no such obligations
outstanding, one percentage point greater than the average annual prime rate
charged during such period by The Chase Manhattan Bank ("Chase Bank") or such
----------
other nationally recognized bank designated by Holding.
(c) Application of the Purchase Price to Certain Loans. The
--------------------------------------------------
Purchaser agrees that Holding and the CD&R Fund shall be entitled to apply any
amounts to be paid by Holding or the CD&R Fund, as the case may be, to
repurchase Shares pursuant to Section 5 or 6 hereof to discharge any
indebtedness of the Purchaser to Holding or any Subsidiary thereof, including,
without limitation, indebtedness of the Purchaser incurred to purchase the
Shares or indebtedness to a third party that is guaranteed by Holding or any
such Subsidiary.
8. Drag-Along Rights.
-----------------
(a) Drag-Along Notice. If the CD&R Fund intends to effect a sale of
-----------------
51% or more of its shares of common stock of Holding to a third party (a "Third
-----
Party Buyer") and the CD&R Fund elects to exercise its rights under this Section
- -----------
8, the CD&R Fund shall deliver written notice (a "Drag-Along Notice") to the
-----------------
Purchaser, which notice shall (a) state (i) that the CD&R Fund wishes to
- -
exercise its rights under this Section 8 with respect to such sale, (ii) the
--
name and address of the Third Party Buyer, (iii) the per share amount and form
---
of consideration the CD&R Fund proposes to receive for its shares of common
stock of Holding and (iv) the terms and conditions of payment of such
--
consideration and all other material terms and conditions of such sale, (b)
-
contain an offer (the "Drag-Along Offer") by the Third Party Buyer to purchase
----------------
from the Purchaser a percentage of his Shares equal to the percentage of the
shares of common stock of Holding owned by the CD&R Fund that are to be sold to
the Third Party Buyer (such percentage, the "Applicable Percentage") on and
---------------------
subject to the same terms and conditions offered to the CD&R Fund and (c) state
-
the anticipated time and place of the closing of the purchase and sale of the
Applicable Percentage of the Shares (a "Section 8 Closing"), which (subject to
-----------------
such terms and conditions) shall occur not fewer than five (5) days nor more
than ninety (90) days after the date such Drag-Along Notice is delivered,
provided
- --------
13
<PAGE>
that if such Section 8 Closing shall not occur prior to the expiration of such
90-day period, the CD&R Fund shall be entitled to deliver additional Drag-Along
Notices with respect to such Drag-Along Offer.
(b) Conditions to Drag-Along. Upon delivery of a Drag-Along Notice,
------------------------
the Purchaser shall have the obligation to transfer the Applicable Percentage of
the Purchaser's Shares pursuant to the Drag-Along Offer, as the same may be
modified from time to time, provided that the CD&R Fund transfers the Applicable
--------
Percentage of its shares of common stock of Holding to the Third Party Buyer at
the Section 8 Closing. Within 10 days of receipt of the Drag-Along Notice, the
Purchaser shall (i) execute and deliver to the CD&R Fund a power of attorney and
-
a letter of transmittal and custody agreement appointing, and in form and
substance reasonably satisfactory to, the CD&R Fund or one or more of its
affiliates designated by the CD&R Fund (the "Custodian"), the true and lawful
---------
attorney-in-fact and custodian for the Purchaser, with full power of
substitution, and authorizing the Custodian to take such actions as the
Custodian may deem necessary or appropriate to effect the sale and transfer of
the Applicable Percentage of the Shares to the Third Party Buyer, upon receipt
of the purchase price therefor at the Section 8 Closing, free and clear of all
security interests, liens, claims, encumbrances, charges, options, restrictions
on transfer, proxies and voting and other agreements of whatever nature, and to
take such other action as may be necessary or appropriate in connection with
such sale, including consenting to any amendments, waivers, modifications or
supplements to the terms of the sale (provided that the CD&R Fund also so
--------
consents, and, to the extent applicable, sells and transfers the Applicable
Percentage of its shares of common stock of Holding on the same terms as so
amended, waived, modified or supplemented) and (ii) deliver to the Custodian
--
certificates representing the Applicable Percentage of the Shares, together with
all necessary duly executed stock powers. The Custodian shall hold the
Applicable Percentage of the Shares and other documents in trust for the
Purchaser pending completion or abandonment of such sale. If, within 90 days
after the CD&R Fund delivers the Drag-Along Notice, the CD&R Fund has not
completed the sale of the Applicable Percentage of the Shares and of its shares
of common stock of Holding to the Third Party Buyer and another Drag-Along
Notice with respect to such Drag-Along Offer has not been sent to the Purchaser,
the Custodian shall return to the Purchaser all certificates representing the
Applicable Percentage of the Shares and all other documents that the Purchaser
delivered in connection with such sale. Promptly after the Section 8 Closing,
the Custodian shall give notice thereof to the Purchaser, shall remit to the
Purchaser the total consideration for the Applicable Percentage of the Shares
sold pursuant thereto (reduced by any required withholding or other similar
taxes and by any amount required to be held in escrow pursuant to the terms of
the purchase and sale agreement and a pro rata portion of any expenses incurred
in connection with such sale), and shall furnish such other evidence of the
completion and
14
<PAGE>
time of completion of such sale and the terms thereof as may reasonably be
requested by the Purchaser.
(c) Reincorporation, Merger, Etc. If the CD&R Fund shall determine
-----------------------------
that Holding should reincorporate in another jurisdiction, merge with or into
another entity, transfer substantially all of its assets to another entity or
participate in any other corporate reorganization or readjustment (any such
transaction a "Reorganization"), Purchaser shall take such actions as may be
--------------
requested by Holding to effect such a Reorganization; provided that Purchaser
--------
shall not be required to take such actions unless Purchaser's proportionate
interest in the assets and earnings of any entity that results from such
Reorganization is the same (except for de minimis differences) as such
Purchaser's interest in the assets and earnings of Holding immediately prior to
such Reorganization.
(d) Remedies. The Purchaser acknowledges that the CD&R Fund would be
--------
irreparably damaged in the event of a breach or a threatened breach by the
Purchaser of any of its obligations under this Section 8 and the Purchaser
agrees that, in the event of a breach or a threatened breach by the Purchaser of
any such obligation, the CD&R Fund shall, in addition to any other rights and
remedies available to it in respect of such breach, be entitled to an injunction
from a court of competent jurisdiction (without any requirement to post bond)
granting it specific performance by the Purchaser of its obligations under this
Section 8. In the event that the CD&R Fund shall file suit to enforce the
covenants contained in this Section 8 (or obtain any other remedy in respect of
any breach thereof), the prevailing party in the suit shall be entitled to
recover, in addition to all other damages to which it may be entitled, the costs
incurred by such party in conducting the suit, including reasonable attorneys'
fees and expenses. In the event that, following a breach or a threatened breach
by the Purchaser of the provisions of this Section 8, the CD&R Fund does not
obtain an injunction granting it specific performance of the Purchaser's
obligations under this Section 8 in connection with such proposed sale prior to
the time the CD&R Fund completes the sale of the Applicable Percentage of its
shares of common stock of Holding or, in its sole discretion, abandons such
sale, then Holding shall have the option to purchase all of the Shares from the
Purchaser at a purchase price per Share equal to the price at which the
Purchaser purchased such shares of Common Stock from Holding or, if less, the
per share consideration payable pursuant to the Drag-Along Offer. Upon
notification by Holding to the Purchaser of Holding's decision to purchase such
Shares, including the price to be paid therefor, the sale and transfer to
Holding shall be considered complete and ownership of such Shares shall pass to
Holding.
15
<PAGE>
(e) Public Offering. In the event that a Public Offering has been
---------------
consummated, the provisions of this Section 8 shall terminate and cease to have
further effect.
9. Representations and Warranties of Holding. Holding represents and
-----------------------------------------
warrants to the Purchaser that (a) Holding has been duly incorporated and
-
validly exists under the laws of Luxembourg, (b) this Agreement has been duly
-
authorized, executed and delivered by Holding and constitutes a valid and
legally binding obligation of Holding enforceable against Holding in accordance
with its terms and (c) the Shares, when issued, delivered and paid for in
-
accordance with the terms hereof, will be duly and validly issued, fully paid
and nonassessable, and free and clear of any liens or encumbrances other than
those created pursuant to this Agreement, or otherwise in connection with the
transactions contemplated hereby.
10. Covenants of Holding.
--------------------
(a) Rule 144. Holding agrees that at all times after it has filed a
--------
registration statement after the date hereof pursuant to the requirements of the
Securities Act or Section 12 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), relating to any class of equity securities of Holding
------------
(other than (i) the registration of equity securities of Holding and/or options
-
or interests in respect thereof to be offered primarily to directors and/or
members of management or employees, sales agents or similar representatives of
Holding or its Subsidiaries, or directors or senior executives of corporations
in which entities managed or sponsored by Clayton, Dubilier & Rice, Inc.
("CD&R") have made equity investments and/or other persons with whom CD&R has
----
consulting or other advisory relationships, or (ii) the registration of equity
--
securities and/or options or other interests in respect thereof solely on Form
S-4 or S-8 or any successor form), it will file the reports required to be filed
by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder (or, if Holding is not required
to file such reports, it will, upon the request of the Purchaser, make publicly
available such information as necessary to permit sales pursuant to Rule 144
under the Securities Act), to the extent required from time to time to enable
the Purchaser to sell the Shares without registration under the Securities Act
within the limitation of the exemptions provided by (i) Rule 144, as such Rule
-
may be amended from time to time, or (ii) any successor rule or regulation
--
hereafter adopted by the Commission.
(b) State and Non-U.S. Securities Laws. Holding agrees to use its
----------------------------------
best efforts to comply with all state securities or "blue sky" laws and foreign
securities laws, if any, applicable to the sale of the Shares to the Purchaser,
provided that Holding shall not be obligated to qualify or register the Shares
- --------
under any such law or to qualify as a foreign
16
<PAGE>
corporation or file any consent to service of process under the laws of any
jurisdiction or subject itself to taxation as doing business in any such
jurisdiction.
11. Certain Restrictions on Repurchases.
-----------------------------------
(a) Financing Agreements, etc. Notwithstanding any other provision
-------------------------
of this Agreement, Holding shall not be obligated or permitted to repurchase any
Shares from the Purchaser if (i) such repurchase would result in a violation of
-
the terms or provisions of, or result in a default or an event of default by
Holding or any of its Subsidiaries under, (A) the Credit Agreement, dated as of
-
April 30, 1998 (the "Credit Agreement"), among JCI, the other borrowers thereto,
----------------
Credit Suisse First Boston, as administrative agent, and the lenders party
thereto from time to time, (B) the Indenture, dated as of April 30, 1998, among
-
JCI, the other borrowers thereto and guarantors thereof, and State Street Bank
and Trust Company, as trustee (the "Indenture") or (C) any other guarantee,
--------- -
financing or security agreement or document entered into (I) by Holding or any
-
Subsidiary thereof prior to the closing date of the Acquisition that remains
outstanding in any part on or after such closing date, (II) by Holding or any
--
such Subsidiary in connection with the Acquisition, or the financing of the
Acquisition or (III) otherwise from time to time in connection with the
---
operations of Holding or its Subsidiaries (the Credit Agreement, the Indenture
and such other agreements and documents, as each may be amended, modified or
supplemented from time to time, are referred to herein as the "Financing
---------
Agreements"), in each case as the same may be amended, modified or supplemented
- ----------
from time to time, (ii) such repurchase would violate any of the terms or
--
provisions of the Articles of Incorporation of Holding or the laws of Luxembourg
or (iii) Holding has no funds legally available therefor under the laws of
---
Luxembourg.
(b) Delay of Repurchase. In the event that the repurchase of any of
-------------------
the Shares by Holding otherwise permitted or required under Section 6(a) is
prevented solely by the terms of Section 11(a), Holding shall provide written
notice thereof to the Purchaser and (i) such repurchase will be postponed and
-
will take place without the application of further conditions or impediments
(other than as set forth in Section 7 hereof or in this Section 11) at the first
opportunity thereafter when Holding has funds legally available therefor and
when such repurchase will not result in any default, event of default or
violation under any of the Financing Agreements or in a violation of any term or
provision of the Articles of Incorporation of Holding or any law of Luxembourg
and (ii) such repurchase obligation shall rank against other similar repurchase
--
obligations with respect to shares of Common Stock or options in respect thereof
according to priority in time of the effective date of the termination of
employment or, if applicable, determination of financial hardship giving rise to
such repurchase obligation; provided
17
<PAGE>
that (A) repurchase obligations arising pursuant to the exercise of a
-
Purchaser's right to require a repurchase under Section 6(a) and repurchase
obligations arising under Section 6(b) by reason of an approved financial
hardship shall take precedence over repurchase obligations arising pursuant to
Holding's exercise of its right to repurchase the Shares under Section 6(a)
(unless the Purchaser had given written notice to Holding of such Purchaser's
intent to require Holding to repurchase the Shares under Section 6(a) in the
event that Holding does not exercise its right to do so, in which case, solely
for purposes of this clause (A), such repurchase shall be treated as pursuant
to such right of the Purchaser) and (B) repurchase obligations as to which a
-
common date determines priority shall be of equal priority and shall share pro
rata in any repurchase payments made pursuant to clause (i) above. In the event
that the repurchase of any of the Shares by Holding otherwise required under
Section 6(a) is prevented by reason of clause (iii) of Section 11(a), and a
Subsidiary of Holding has cash and legally available distributable reserves
sufficient to enable Holding to effect such repurchase (and the distribution of
such cash can be accomplished without the imposition of any withholding or other
tax or other cost and without adversely affecting the business affairs of such
Subsidiary) so that such repurchase would not be prevented by reason of such
clause (iii), Holding will use commercially reasonable efforts to cause such
Subsidiary to so distribute such funds, subject in all cases to any restrictions
or other limitations in any of the Financing Agreements.
(c) Purchase Price Adjustment. In the event that a repurchase of
-------------------------
Shares from the Purchaser is delayed pursuant to this Section 11, the purchase
price per Share when the repurchase of such Shares eventually takes place as
contemplated by Section 11(b) shall be equal to the Purchase Price per Share
determined under Section 7 as of the date of the termination or determination of
financial hardship giving rise to such repurchase, increased by interest on such
Purchase Price for the period from the date such repurchase would have taken
place but for a delay of such repurchase pursuant to Section 11(a) to the date
on which the repurchase actually takes place (the "Delay Period"), at an annual
------------
rate of interest equal to the average annual cost to Holding and its
Subsidiaries of its bank indebtedness obligations outstanding during the Delay
Period or, if there are no such obligations outstanding, one percentage point
greater than the average annual prime rate charged during the Delay Period by
Chase Bank or such other nationally recognized bank designated by Holding.
12. Miscellaneous.
-------------
(a) Notices. All notices and other communications required or
-------
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested,
18
<PAGE>
postage prepaid, or by any recognized international equivalent of such mail
delivery, to Holding, the CD&R Fund or the Purchaser, as the case may be, at the
following addresses or to such other address as Holding, the CD&R Fund or the
Purchaser, as the case may be, shall specify by notice to the others:
(i) if to Holding, to Holding at:
CDRJ Investments (Lux) S.A.
10 rue Antoine Jans
L-1820 Luxembourg
Luxembourg
Attention: Secretary of the Advisory Committee
---------
with a copy to:
Jafra Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, California 91361
Attention: General Counsel
---------
(ii) if to the Purchaser, to the Purchaser at the address set forth on
the signature page hereof, with a copy to:
Stephan G. Bachelder & Associates, P.A.
22 Free Street
Portland, Maine 04101
Attention: Stephan G. Bachelder, Esq.
---------
(iii) if to the CD&R Fund, to:
Clayton, Dubilier & Rice Fund V
Limited Partnership
Foulkstone Plaza, Suite 102
1403 Foulk Road
Wilmington, Delaware 19803
Attention: Joseph L. Rice, III
---------
19
<PAGE>
All such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof. Copies of any notice or other communication given under this
Agreement shall also be given to:
Clayton, Dubilier & Rice, Inc.
375 Park Avenue
New York, New York 10152
Attention: Donald J. Gogel
---------
and
Debevoise & Plimpton
875 Third Avenue
New York, New York 10022
Attention: Paul S. Bird, Esq.
---------
The CD&R Fund also shall be given a copy of any notice or other communication
between the Purchaser and Holding under this Agreement at its address as set
forth above.
(b) Binding Effect; Benefits. This Agreement shall be binding upon
------------------------
the parties to this Agreement and their respective successors and assigns and
shall inure to the benefit of the parties to this Agreement, the CD&R Fund and
their respective successors and assigns. Except as provided in Sections 4
through 8, inclusive, nothing in this Agreement, express or implied, is intended
or shall be construed to give any person other than the parties to this
Agreement, the CD&R Fund or their respective successors or assigns any legal or
equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.
(c) Waiver; Amendment.
-----------------
(i) Waiver. Any party hereto or beneficiary hereof may by written
------
notice to the other parties (A) extend the time for the performance of any
-
of the obligations or other actions of the other parties under this
Agreement, (B) waive compliance with any of the conditions or covenants of
-
the other parties contained in this Agreement and (C) waive or modify
-
performance of any of the obligations of the other parties under this
Agreement, provided that any waiver of the provisions of Sections 4 through
--------
8, inclusive, must be consented to in writing by the CD&R Fund. Except as
provided in the preceding sentence, no action taken
20
<PAGE>
pursuant to this Agreement, including, without limitation, any
investigation by or on behalf of any party or beneficiary shall be deemed
to constitute a waiver by the party or beneficiary taking such action of
compliance with any representations, warranties, covenants or agreements
contained herein. The waiver by any party hereto or beneficiary hereof of a
breach of any provision of this Agreement shall not operate or be construed
as a waiver of any preceding or succeeding breach and no failure by a party
to exercise any right or privilege hereunder shall be deemed a waiver of
such party's or beneficiary's rights or privileges hereunder or shall be
deemed a waiver of such party's or beneficiary's rights to exercise the
same at any subsequent time or times hereunder.
(ii) Amendment. This Agreement may not be amended, modified or
---------
supplemented orally, but only by a written instrument executed by the
Purchaser and Holding, and, in the case of any amendment, modification or
supplement to or affecting any of Sections 4 through 8, inclusive, or that
adversely affects the rights of the CD&R Fund hereunder, consented to by
the CD&R Fund in writing. The parties hereto acknowledge that Holding's
consent to an amendment or modification of this Agreement may be subject to
the terms and provisions of the Financing Agreements.
(d) Assignability. Except as provided herein, neither this Agreement
-------------
nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by Holding or the Purchaser without the prior written
consent of the other party hereto and the CD&R Fund; provided that this
--------
Agreement and the rights, remedies, obligations and liabilities of Holding shall
be assignable by holding to any Successor of Holding. Holding and the CD&R Fund
may assign from time to time all or any portion of its rights under Sections 4
through 8 hereof to one or more Affiliates designated by it.
(e) Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
--------------
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD REQUIRE APPLICATION OF
THE LAW OF ANOTHER JURISDICTION.
(f) Jurisdiction. The Purchaser hereby irrevocably and
------------
unconditionally submits, for him or her self and his or her property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out or of relating to this
Agreement or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all
21
<PAGE>
claims in respect of any such action or proceeding may be heard and determined
in such New York State court or, to the extent permitted by law, in such Federal
court. Each of the parties hereby agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that Holding may otherwise have
to bring any action or proceeding relating to this Agreement against the
Purchaser or his or her properties in the courts of any jurisdiction. The
Purchaser hereby irrevocably and unconditionally waives, to the fullest extent
he or she may legally and effectively do so, any objection that he or she may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any New York or Federal court.
Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.
(g) Incorporation into Earlier Agreement. Changes and additions made
------------------------------------
to the last sentence of Section 7(b), the last sentence of Section 8(d) and
Section 12(f) hereof, shall be deemed to be incorporated in their entirety into
the Management Stock Subscription Agreements previously executed on April 30,
1998 by Messrs. Clark, Rubio and Mason, as if fully set forth therein.
(h) Section and Other Headings, etc. The section and other headings
-------------------------------
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.
(i) Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.
(j) Certain Definitions.
-------------------
"Affiliate": with respect to any Person, means any other Person that,
---------
directly or indirectly through one or more intermediaries, Controls, is
Controlled by, or is under common Control with the first Person, including but
not limited to a Subsidiary of the first Person, a Person of which the first
Person is a Subsidiary, or another Subsidiary of a Person of which the first
Person is also a Subsidiary.
"Control": with respect to any Person, means the possession, directly
-------
or indirectly, severally or jointly, of the power to direct or cause the
direction of the management policies of such Person, whether through the
ownership of voting securities, by contract or credit arrangement, as trustee or
executor, or otherwise.
22
<PAGE>
"Person": any natural person, firm, partnership, limited liability
------
company, association, corporation, company, trust, business trust, governmental
authority or other entity.
"Subsidiary": with respect to any Person, each corporation or other
----------
Person in which the first Person owns or Controls, directly or indirectly,
capital stock or other ownership interests representing 50% or more of the
combined voting power of the outstanding voting stock or other ownership
interests of such corporation or other Person.
"Successor": of a Person means a Person that succeeds to the first
---------
Person's assets and liabilities by merger, liquidation, dissolution or otherwise
by operation of law, or a Person to which all or substantially all the assets
and/or business of the first Person are transferred.
23
<PAGE>
IN WITNESS WHEREOF, Holding and the Purchaser have executed this
Agreement as of the date first above written.
CDRJ INVESTMENTS (LUX) S.A.
By:___________________________________________
Name:
Title:
THE PURCHASER:
Name
By:___________________________________________
as Attorney-in-Fact
Name:
Address of the Purchaser:
Address
Total Number of Shares
of Common Stock of
CDRJ Investments (Lux) S.A.
(RC Luxembourg B 63 119)
to be Purchased: Shares
Total Cash Purchase
Price: $Share Amount
24
<PAGE>
EXHIBIT 10.9
INDIVIDUAL INVESTOR STOCK SUBSCRIPTION AGREEMENT
------------------------------------------------
INDIVIDUAL INVESTOR STOCK SUBSCRIPTION AGREEMENT, dated as of
, 1998, between CDRJ Investments (Lux) S.A., a Luxembourg societe anonyme
("Holding"), and the Purchaser whose name appears on the signature page hereof
- ---------
(the "Purchaser").
---------
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, pursuant to and subject to the terms of the Acquisition
Agreement, dated as of January 26, 1998, as amended, by and among Holding, The
Gillette Company ("Gillette") and the other parties thereto, Holding acquired,
--------
and/or caused certain of its Subsidiaries (as defined herein) to acquire,
substantially all of the assets of the worldwide Jafra cosmetics business of
Gillette (the "Acquisition") on April 30, 1998 (the "Acquisition");
WHEREAS, in connection with the Acquisition, Holding issued and sold
an aggregate of 769,600 shares of its Class A voting shares, par value $2.00 per
share (the "Common Stock"), to Clayton, Dubilier & Rice Fund V Limited
------------
Partnership, a Cayman Islands exempted limited partnership (together with any
successor investment vehicle managed by Clayton, Dubilier & Rice, Inc. ("CD&R"),
----
the "CD&R Fund"), and an aggregate of 19,903 shares of Common Stock to certain
---------
executive officers of Holding or its Subsidiaries (the "Initial Management
------------------
Investors");
- ---------
WHEREAS, Holding expects to issue and sell an aggregate of up to an
additional 32,238 shares of Common Stock to the Initial Management Investors and
certain other executive officers and other key employees of Holding or its
Subsidiaries (collectively, the "Management Investors") pursuant to the terms of
--------------------
substantially identical management stock subscription agreements between Holding
and each such Management Investor and the Amended and Restated Jafra Cosmetics
International Stock Incentive Plan (the "Stock Incentive Plan") and pursuant to
--------------------
the exemption from the registration requirements of the Securities Act of 1933,
as amended provided by Rule 701 or Regulation D thereunder;
WHEREAS, Holding expects to issue and sell an aggregate of up to
21,000 shares of Common Stock to (a) certain current or former chief executive
officers
<PAGE>
of, or consultants to, other companies in which funds managed by CD&R have or
have had investments, and to other individuals identified by CD&R as "friends of
the firm" (the "Individual Investors") and to members of the Board
--------------------
of Directors of Holding (the "Board") who are not employees of Parent or any
-----
Subsidiary thereof or affiliated with CD&R (the "Director Investors" and,
------------------
together with the Individual Investors, the "Investors"), including the
---------
Purchaser, in each case, pursuant to stock subscription agreements that are
substantially identical to this Agreement to be entered into with such other
purchasers;
WHEREAS, the terms of the offering of the shares of the Common Stock
to the Purchaser and to the other Investors (the "Offering") are set forth in a
--------
Confidential Offering Memorandum, dated as of September 10, 1998 (the "Offering
--------
Memorandum"), a copy of which has been furnished to the Purchaser;
- ----------
WHEREAS, the Purchaser desires to subscribe for and purchase from Holding
the aggregate number of shares of Common Stock set forth on the signature page
hereof (each a "Share" and, collectively, the "Shares"), at a purchase price of
----- ------
$100 per share;
WHEREAS, Holding desires to sell the Shares to the Purchaser on the
terms and subject to the conditions set forth herein.
NOW, THEREFORE, to implement the foregoing and in consideration of the
mutual promises, covenants and agreements contained herein, the parties hereto
hereby agree as follows:
1. Purchase and Sale of Common Stock.
---------------------------------
(a) Purchase of Common Stock. Subject to all of the terms and
------------------------
conditions of this Agreement, the Purchaser hereby subscribes for and shall
purchase, and Holding shall sell to the Purchaser, the Shares, at a purchase
price of $100 per Share, at the Closing provided for in Section 2(a) hereof.
Notwithstanding anything in this Agreement to the contrary, Holding shall have
no obligation to sell any shares of Common Stock (including the Shares) to any
person who is a resident of a jurisdiction in which the sale of Common Stock to
such person would constitute a violation of the securities, "blue sky" or other
laws of such jurisdiction.
(b) Consideration. Subject to all of the terms and conditions of
-------------
this Agreement, the Purchaser shall deliver to Holding at the Closing referred
to in Section 2(a) hereof, immediately available funds in an amount equal to the
aggregate
2
<PAGE>
purchase price for the Shares to be purchased at such Closing set forth on the
signature page hereof.
2. Closing.
-------
(a) Time and Place. Except as otherwise mutually agreed by Holding
--------------
and the Purchaser, the closing of the purchase and sale of the Shares pursuant
to this Agreement shall be held at the offices of Debevoise & Plimpton, 875
Third Avenue, New York, New York at 10:00 a.m. (New York time) on or about
, 1998 (the "Closing").
-------
(b) Delivery by the Purchaser. At the Closing, the Purchaser shall
-------------------------
deliver to Holding the consideration referred to in Section 1(b) hereof.
(c) Delivery by Holding. At the Closing, Holding shall deliver to
-------------------
the Purchaser (i) a receipt for the consideration received from the Purchaser
-
and (ii) a stock certificate or an undertaking by Holding to obtain the issuance
--
of a stock certificate registered in the Purchaser's name and representing the
Shares following the completion of the actions to be taken under Section 2(d),
which certificate shall bear the legends set forth in Section 3(b).
(d) Actions Under Luxembourg Law. Holding shall cause its duly
----------------------------
authorized representatives to record the capital increase represented by the
purchase of the Shares by the Purchaser in accordance with Luxembourg law and
enter the issuance of Purchaser's Shares in the share register of Holding as of
the date of the Closing.
3. Purchaser's Representations, Warranties and Covenants.
-----------------------------------------------------
(a) Investment Intention. The Purchaser represents and warrants that
--------------------
the Purchaser is acquiring the Shares solely for the Purchaser's own account for
investment and not with a view to or for sale in connection with any
distribution thereof. The Purchaser agrees that the Purchaser will not,
directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise
dispose of any of the Shares (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of any Shares), except in compliance with the
Securities Act of 1933, as amended (the "Securities Act"), and the rules and
--------------
regulations of the Securities and Exchange Commission (the "Commission")
----------
thereunder, and in compliance with applicable state securities or "blue sky"
laws and foreign securities laws, if any. The Purchaser further understands,
acknowledges and agrees that none of the Shares may be transferred, sold,
pledged, hypothecated or otherwise disposed of (i) unless the provisions of
-
Sections 4 through 6 hereof, inclusive, shall have been
3
<PAGE>
complied with or have expired, (ii) unless (A) such disposition is pursuant to
-- -
an effective registration statement under the Securities Act, (B) the Purchaser
-
shall have delivered to Holding an opinion of counsel, which opinion and counsel
shall be reasonably satisfactory to Holding, to the effect that such disposition
is exempt from the provisions of Section 5 of the Securities Act or (C) a
-
no-action letter from the Commission, reasonably satisfactory to Holding, shall
have been obtained with respect to such disposition and (iii) unless such
---
disposition is pursuant to registration under any applicable state or foreign
securities laws or an exemption therefrom.
(b) Legends. The Purchaser acknowledges that the certificate or
-------
certificates representing the Shares shall bear the following legends:
"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
PROVISIONS OF A STOCK SUBSCRIPTION AGREEMENT, DATED AS OF
1998, AND NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY IT
ARE ASSIGNABLE OR OTHERWISE TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SUCH STOCK SUBSCRIPTION AGREEMENT, AS THE SAME MAY BE
AMENDED FROM TIME TO TIME, A COPY OF THE CURRENT FORM OF WHICH IS ON
FILE WITH THE SECRETARY OF THE ADVISORY COMMITTEE OF HOLDING. THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE ENTITLED TO THE BENEFITS OF
AND ARE BOUND BY THE OBLIGATIONS SET FORTH IN A REGISTRATION AND
PARTICIPATION AGREEMENT, DATED AS OF APRIL 30, 1998, AMONG HOLDING AND
CERTAIN STOCKHOLDERS OF HOLDING, AS THE SAME MAY BE AMENDED FROM TIME
TO TIME, A COPY OF THE CURRENT FORM OF WHICH IS ON FILE WITH THE
SECRETARY OF THE ADVISORY COMMITTEE OF HOLDING."
"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE OR NON-U.S.
SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A) SUCH DISPOSITION
- -
IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, (B) THE HOLDER HEREOF
-
4
<PAGE>
SHALL HAVE DELIVERED TO HOLDING AN OPINION OF COUNSEL, WHICH OPINION
AND COUNSEL SHALL BE REASONABLY SATISFACTORY TO HOLDING, TO THE EFFECT
THAT SUCH DISPOSITION IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF
SUCH ACT OR (C) A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE
-
COMMISSION, REASONABLY SATISFACTORY TO COUNSEL FOR HOLDING, SHALL HAVE
BEEN OBTAINED WITH RESPECT TO SUCH DISPOSITION AND (ii) SUCH
--
DISPOSITION IS PURSUANT TO REGISTRATION UNDER ANY APPLICABLE STATE AND
NON-U.S. SECURITIES LAWS OR AN EXEMPTION THEREFROM. IF THE PURCHASER
IS A CITIZEN OR RESIDENT OF ANY JURISDICTION OTHER THAN THE UNITED
STATES, OR THE PURCHASER DESIRES TO EFFECT ANY TRANSFER IN ANY SUCH
JURISDICTION, THEN, IN ADDITION TO THE FOREGOING, COUNSEL FOR THE
PURCHASER (WHICH COUNSEL SHALL BE REASONABLY SATISFACTORY TO HOLDING)
SHALL HAVE FURNISHED HOLDING WITH AN OPINION OR OTHER ADVICE
REASONABLY SATISFACTORY TO HOLDING TO THE EFFECT THAT SUCH TRANSFER
WILL COMPLY WITH THE SECURITIES LAWS OF SUCH JURISDICTION."
(c) Securities Law Matters. The Purchaser acknowledges receipt of
----------------------
advice from Holding that (i) the offer and sale of the Shares hereby have not
-
been registered under the Securities Act or any state or foreign securities or
"blue sky" laws, (ii) it is not anticipated that there will be any public market
--
for the Shares, (iii) the Shares must be held indefinitely and the Purchaser
---
must continue to bear the economic risk of the investment in the Shares unless
there is a public market for the Shares and, to the extent required under the
Securities Act, the Shares are registered for resale under the Securities Act
and such state laws or an exemption from registration is available, (iv) Rule
--
144 promulgated under the Securities Act ("Rule 144") is not presently available
--------
with respect to sales of any securities of Holding, and Holding has made no
covenant to make Rule 144 available, (v) when and if the Shares may be disposed
-
of without registration in reliance upon Rule 144, such disposition by an
affiliate of Holding, within the meaning of Rule 405, can be made only in
limited amounts in accordance with the terms and conditions of Rule 144, (vi)
--
Holding does not plan to file reports with the Commission or make public
information concerning Holding available unless required to do so by law or the
terms of the financing agreements entered into by Holding and its Subsidiaries
in connection with the Acquisition, as such may be amended from time to time
(the "Financing Agreements"), (vii) if the exemption afforded by
-------------------- ---
5
<PAGE>
Rule 144 is not available, sales of the Shares may be difficult to effect
because of the absence of public information concerning Holding, (viii) a
----
restrictive legend in the form heretofore set forth shall be placed on the
certificates representing the Shares and (ix) a notation shall be made in the
--
appropriate records of Holding indicating that the Shares are subject to
restrictions on transfer set forth in this Agreement and, if Holding should in
the future engage the services of a stock transfer agent, appropriate stop-
transfer restrictions will be issued to such transfer agent with respect to the
Shares.
(d) Compliance with Rule 144. If any of the Shares are to be
------------------------
disposed of in accordance with Rule 144, the Purchaser shall transmit to Holding
an executed copy of Form 144 (if required by Rule 144) no later than the time
such form is required to be transmitted to the Commission for filing and such
other documentation as Holding may reasonably require to assure compliance with
Rule 144 in connection with such disposition.
(e) Ability to Bear Risk. The Purchaser represents and warrants that
--------------------
(i) the financial situation of the Purchaser is such that the Purchaser can
-
afford to bear the economic risk of holding the Shares for an indefinite period
and (ii) the Purchaser can afford to suffer the complete loss of the Purchaser's
--
investment in the Shares.
(f) Questionnaire. The Purchaser agrees to furnish such documents
-------------
and to comply with such reasonable requests of Holding as may be necessary to
substantiate the Purchaser's status as a qualifying investor in connection with
this private offering of Shares of Common Stock to the Purchaser and the other
Investors. The Purchaser represents and warrants that all information contained
in such documents and any other written materials concerning the status of the
Purchaser furnished by the Purchaser to Holding in connection with such requests
will be true, complete and correct in all material respects.
(g) Access to Information. The Purchaser represents and warrants
---------------------
that (i) the Purchaser has carefully reviewed the Offering Memorandum and the
-
other materials furnished to the Purchaser in connection with the transaction
contemplated hereby, (ii) the Purchaser has been granted the opportunity to ask
--
questions of, and receive answers from, representatives of Holding concerning
the terms and conditions of the purchase of the Shares and to obtain any
additional information that the Purchaser deems necessary to verify the accuracy
of the information contained in such materials and (iii) the Purchaser's
---
knowledge and experience in financial and business matters is such that the
Purchaser is capable of evaluating the risks of an investment in the Shares.
6
<PAGE>
(h) Registration and Participation Agreement. The Purchaser
----------------------------------------
acknowledges and agrees that the Purchaser shall be entitled to the rights and
subject to the obligations created under the Registration and Participation
Agreement, dated as of April 30, 1998, among Holding and certain other
shareholders of Holding (as the same may be amended from time to time, the
"Registration and Participation Agreement"), and the Shares shall be deemed to
- -----------------------------------------
be "registrable securities," as defined in the Registration and Participation
Agreement, in each case, to the extent provided therein.
(i) Restrictions on Sale upon Public Offering. The Purchaser
-----------------------------------------
acknowledges and agrees that, in the event that Holding files a registration
statement under the Securities Act with respect to an underwritten public
offering of any shares of its capital stock, the Purchaser will not effect any
public sale or distribution of any shares of Common Stock (other than as part of
such underwritten public offering), including but not limited to, pursuant to
Rule 144 or Rule 144A under the Securities Act, during the 20 days prior to and
the 180 days after the effective date of such registration statement. The
Purchaser further understands and acknowledges that any sale, transfer or other
disposition of the Shares by him following any underwritten public offering of
the Common Stock will be subject to compliance with, and may be limited under,
the federal securities laws and/or state "blue sky" or non-U.S. securities laws.
4. Restrictions on Disposition of Shares. Except as provided in
-------------------------------------
Sections 5 and 6 hereof, inclusive, neither the Purchaser nor any of the
Purchaser's heirs or representatives shall sell, assign, transfer, pledge or
otherwise directly or indirectly dispose of or encumber any of the Shares to or
with any other person, firm, trust, association, corporation or entity
(including, without limitation, transfers to any other holder of Holding's
capital stock, dispositions by gift, by will, by a corporation as a distribution
in liquidation or by operation of law) other than (i) a transfer of Shares upon
-
the death of the Purchaser by operation of law to the estate of the Purchaser or
by will to the beneficiary named therein, provided that such estate or
--------
beneficiary, whichever is applicable, shall be bound by all of the provisions of
this Agreement or (ii) with the consent of the Board, to (A) a trust or trusts
-- -
for the exclusive benefit of Purchaser's spouse, children, and/or grandchildren
("Family Members") or (B) a partnership or limited liability company for the
-------------- -
exclusive benefit of such Family Members of which such Family Members and/or
trusts are the only partners or members, as the case may be, provided that such
--------
partnership or limited liability company, whichever is applicable, shall be
bound by all of the provisions of this Agreement. The restrictions contained in
this Section 4 (x) shall terminate on the first date sales of Common Stock are
-
made to the public pursuant to an underwritten public offering of the Common
Stock led by one or more underwriters at least one of which is an underwriter of
nationally recognized standing (a "Public Offering") and (y) shall not apply to
--------------- -
a sale as part of the Public Offer-
7
<PAGE>
ing or to a sale as part of a "qualifying sale" within the meaning of Section 4
of the Registration and Participation Agreement.
5. Options of Holding and the CD&R Fund Upon Proposed Disposition.
--------------------------------------------------------------
(a) Rights of First Refusal. If the Purchaser desires to accept an
-----------------------
offer (which must be in writing and for cash, be irrevocable by its terms for at
least 60 days and be a bona fide offer as determined in good faith by the
Holding Board) from any prospective purchaser to purchase all or any part of the
Shares at any time owned by the Purchaser, the Purchaser shall give notice in
writing to Holding and the CD&R Fund (i) designating the number of Shares
-
proposed to be sold (the "Offer Shares"), (ii) naming the prospective purchaser
------------ --
of such Shares and (iii) specifying the price (the "Offer Price") at and terms
--- -----------
(the "Offer Terms") upon which the Purchaser desires to sell the same. During
-----------
the 30-day period following receipt of such notice by Holding and the CD&R Fund
(the "First Refusal Period"), Holding shall have the right to purchase from the
--------------------
Purchaser the Offer Shares, at the Offer Price and on the Offer Terms. Holding
hereby undertakes to use reasonable efforts to act as promptly as practicable
following such notice to determine whether it shall elect to exercise such
right. If Holding fails to exercise its right to purchase the Offer Shares
within the First Refusal Period, the CD&R Fund shall have the right to purchase
the Offer Shares, at the Offer Price and on the Offer Terms, at any time during
the period beginning on the earlier of (x) the end of the First Refusal Period
-
and (y) the date of receipt by the CD&R Fund of written notice that Holding has
-
elected not to exercise its right to purchase the Offer Shares and ending 30
days thereafter (the "Second Refusal Period"). The rights provided hereunder
---------------------
shall be exercised by irrevocable written notice to the Purchaser given at any
time during the applicable period. If such right to purchase the Offer Shares
is exercised, Holding or the CD&R Fund, as the case may be, shall deliver to the
Purchaser a certified or bank check for the Offer Price, payable to the order of
the Purchaser, against delivery of certificates or other instruments
representing the Offer Shares so purchased, appropriately endorsed by the
Purchaser. If such right shall not have been exercised prior to the expiration
of the Second Refusal Period, then at any time during the 30 days following the
expiration of the Second Refusal Period, the Purchaser may sell the Offer Shares
to (but only to) the intended purchaser named in the Purchaser's notice to
Holding and the CD&R Fund at the Offer Price and on the Offer Terms specified in
such notice, free of all restrictions or obligations imposed by, and free of any
rights or benefits set forth in this Agreement, provided that such intended
--------
purchaser shall have agreed in writing, pursuant to an instrument of assumption
satisfactory in substance and form to Holding, to make and be bound by the
representations, warranties and covenants set forth in Section 3 hereof, other
than those set forth in Sections 3(g)(i), 3(g)(ii) and 3(h).
8
<PAGE>
(b) Public Offering. In the event that a Public Offering has been
---------------
consummated, the Purchaser may sell his Shares without complying with Section
5(a) and this Section 5 shall not apply to a sale to the underwriters as part of
the Public Offering or at any time thereafter.
6. Drag-Along Rights.
-----------------
(a) Drag-Along Notice. If the CD&R Fund intends to effect a sale of
-----------------
51% or more of its shares of common stock of Holding to a third party (a "Third
-----
Party Buyer") and the CD&R Fund elects to exercise its rights under this Section
- -----------
6, the CD&R Fund shall deliver written notice (a "Drag-Along Notice") to the
-----------------
Purchaser, which notice shall (a) state (i) that the CD&R Fund wishes to
- -
exercise its rights under this Section 6 with respect to such sale, (ii) the
--
name and address of the Third Party Buyer, (iii) the per share amount and form
---
of consideration the CD&R Fund proposes to receive for its shares of common
stock of Holding and (iv) the terms and conditions of payment of such
--
consideration and all other material terms and conditions of such sale, (b)
-
contain an offer (the "Drag-Along Offer") by the Third Party Buyer to purchase
----------------
from the Purchaser a percentage of his Shares equal to the percentage of the
shares of common stock of Holding owned by the CD&R Fund that are to be sold to
the Third Party Buyer (such percentage, the "Applicable Percentage") on and
---------------------
subject to the same terms and conditions offered to the CD&R Fund and (c) state
-
the anticipated time and place of the closing of the purchase and sale of the
Applicable Percentage of the Shares (a "Section 6 Closing"), which (subject to
-----------------
such terms and conditions) shall occur not fewer than five (5) days nor more
than ninety (90) days after the date such Drag-Along Notice is delivered,
provided that if such Section 6 Closing shall not occur prior to the expiration
- --------
of such 90-day period, the CD&R Fund shall be entitled to deliver additional
Drag-Along Notices with respect to such Drag-Along Offer.
(b) Conditions to Drag-Along. Upon delivery of a Drag-Along Notice,
------------------------
the Purchaser shall have the obligation to transfer the Applicable Percentage of
the Purchaser's Shares pursuant to the Drag-Along Offer, as the same may be
modified from time to time, provided that the CD&R Fund transfers the Applicable
--------
Percentage of its shares of common stock of Holding to the Third Party Buyer at
the Section 6 Closing. Within 10 days of receipt of the Drag-Along Notice, the
Purchaser shall (i) execute and deliver to the CD&R Fund a power of attorney and
-
a letter of transmittal and custody agreement appointing, and in form and
substance reasonably satisfactory to, the CD&R Fund or one or more of its
affiliates designated by the CD&R Fund (the "Custodian"), the true and lawful
---------
attorney-in-fact and custodian for the Purchaser, with full power of
substitution, and authorizing the Custodian to take such actions as the
Custodian may deem necessary or appropriate to effect the sale and transfer of
the Applicable Percentage of the
9
<PAGE>
Shares to the Third Party Buyer, upon receipt of the purchase price therefor at
the Section 6 Closing, free and clear of all security interests, liens, claims,
encumbrances, charges, options, restrictions on transfer, proxies and voting and
other agreements of whatever nature, and to take such other action as may be
necessary or appropriate in connection with such sale, including consenting to
any amendments, waivers, modifications or supplements to the terms of the sale
(provided that the CD&R Fund also so consents, and, to the extent applicable,
--------
sells and transfers the Applicable Percentage of its shares of common stock of
Holding on the same terms as so amended, waived, modified or supplemented) and
(ii) deliver to the Custodian certificates representing the Applicable
--
Percentage of the Shares, together with all necessary duly executed stock
powers. The Custodian shall hold the Applicable Percentage of the Shares and
other documents in trust for the Purchaser pending completion or abandonment of
such sale. If, within 90 days after the CD&R Fund delivers the Drag-Along
Notice, the CD&R Fund has not completed the sale of the Applicable Percentage of
the Shares and of its shares of common stock of Holding to the Third Party Buyer
and another Drag-Along Notice with respect to such Drag-Along Offer has not been
sent to the Purchaser, the Custodian shall return to the Purchaser all
certificates representing the Applicable Percentage of the Shares and all other
documents that the Purchaser delivered in connection with such sale. Promptly
after the Section 6 Closing, the Custodian shall give notice thereof to the
Purchaser, shall remit to the Purchaser the total consideration for the
Applicable Percentage of the Shares sold pursuant thereto (reduced by any
required withholding or other similar taxes and by any amount required to be
held in escrow pursuant to the terms of the purchase and sale agreement and a
pro rata portion of any expenses incurred in connection with such sale), and
shall furnish such other evidence of the completion and time of completion of
such sale and the terms thereof as may reasonably be requested by the Purchaser.
(c) Reincorporation, Merger, Etc.. If the CD&R Fund shall determine
-----------------------------
that Holding should reincorporate in another jurisdiction, merge with or into
another entity, transfer substantially all of its assets to another entity or
participate in any other corporate reorganization or readjustment (any such
transaction a "Reorganization"), Purchaser shall take such actions as may be
--------------
requested by Holding to effect such a Reorganization; provided that Purchaser
--------
shall not be required to take such actions unless Purchaser's proportionate
interest in the assets and earnings of any entity that results from such
Reorganization is the same (except for de minimis differences) as such
Purchaser's interest in the assets and earnings of Holding immediately prior to
such Reorganization.
(d) Remedies. The Purchaser acknowledges that the CD&R Fund would
--------
be irreparably damaged in the event of a breach or a threatened breach by the
Purchaser of any of its obligations under this Section 6 and the Purchaser
agrees that, in
10
<PAGE>
the event of a breach or a threatened breach by the Purchaser of any such
obligation, the CD&R Fund shall, in addition to any other rights and remedies
available to it in respect of such breach, be entitled to an injunction from a
court of competent jurisdiction (without any requirement to post bond) granting
it specific performance by the Purchaser of its obligations under this Section
6. In the event that the CD&R Fund shall file suit to enforce the covenants
contained in this Section 6 (or obtain any other remedy in respect of any breach
thereof), the prevailing party in the suit shall be entitled to recover, in
addition to all other damages to which it may be entitled, the costs incurred by
such party in conducting the suit, including reasonable attorney's fees and
expenses. In the event that, following a breach or a threatened breach by the
Purchaser of the provisions of this Section 6, the CD&R Fund does not obtain an
injunction granting it specific performance of the Purchaser's obligations under
this Section 6 in connection with such proposed sale prior to the time the CD&R
Fund completes the sale of the Applicable Percentage of its shares of common
stock of Holding or, in its sole discretion, abandons such sale, then Holding
shall have the option to purchase all of the Shares from the Purchaser at a
purchase price per Share equal to the price at which the Purchaser purchased
such shares of Common Stock from Holding or, if less, the per share
consideration payable pursuant to the Drag-Along Offer. Upon notification by
Holding to the Purchaser of Holding's decision to purchase such Shares,
including the price to be paid therefor, the sale and transfer to Holding shall
be considered complete and ownership of such Shares shall pass to Holding.
(e) Public Offering. In the event that a Public Offering has been
---------------
consummated, the provisions of this Section 6 shall terminate and cease to have
further effect.
7. Representations and Warranties of Holding. Holding represents and
-----------------------------------------
warrants to the Purchaser that (a) Holding has been duly incorporated and
-
validly exists under the laws of Luxembourg, (b) this Agreement has been duly
-
authorized, executed and delivered by Holding and constitutes a valid and
legally binding obligation of Holding enforceable against Holding in accordance
with its terms and (c) the Shares, when issued, delivered and paid for in
-
accordance with the terms hereof, will be duly and validly issued, fully paid
and nonassessable, and free and clear of any liens or encumbrances other than
those created pursuant to this Agreement, or otherwise in connection with the
transactions contemplated hereby.
8. Covenants of Holding.
--------------------
(a) Rule 144. Holding agrees that at all times after it has filed a
--------
registration statement after the date hereof pursuant to the requirements of the
Securities
11
<PAGE>
Act or Section 12 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), relating to any class of equity securities of Holding (other
------------
than (i) the registration of equity securities of Holding and/or options or
-
interests in respect thereof to be offered primarily to directors and/or members
of management or employees, sales agents or similar representatives of Holding
or its Subsidiaries, or directors or senior executives of corporations in which
entities managed or sponsored by Clayton, Dubilier & Rice, Inc. ("CD&R") have
----
made equity investments and/or other persons with whom CD&R has consulting or
other advisory relationships, or (ii) the registration of equity securities
--
and/or options or other interests in respect thereof solely on Form S-4 or S-8
or any successor form), it will file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and regulations
adopted by the Commission thereunder (or, if Holding is not required to file
such reports, it will, upon the request of the Purchaser, make publicly
available such information as necessary to permit sales pursuant to Rule 144
under the Securities Act), to the extent required from time to time to enable
the Purchaser to sell the Shares without registration under the Securities Act
within the limitation of the exemptions provided by (i) Rule 144, as such Rule
-
may be amended from time to time, or (ii) any successor rule or regulation
--
hereafter adopted by the Commission.
(b) State and Non-U.S. Securities Laws. Holding agrees to use its
----------------------------------
best efforts to comply with all state securities or "blue sky" laws and foreign
securities laws, if any, applicable to the sale of the Shares to the Purchaser,
provided that Holding shall not be obligated to qualify or register the Shares
- --------
under any such law or to qualify as a foreign corporation or file any consent to
service of process under the laws of any jurisdiction or subject itself to
taxation as doing business in any such jurisdiction.
9. Miscellaneous.
-------------
(a) Notices. All notices and other communications required or
-------
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such mail delivery, to Holding, the CD&R Fund or the
Purchaser, as the case may be, at the following addresses or to such other
address as Holding, the CD&R Fund or the Purchaser, as the case may be, shall
specify by notice to the others:
(i) if to Holding, to Holding at:
CDRJ Investments (Lux) S.A.
10 rue Antoine Jans
12
<PAGE>
L-1820 Luxembourg
Luxembourg
Attention: Secretary
---------
with a copy to:
Jafra Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, California 91361
Attention: General Counsel
---------
(ii) if to the Purchaser, to the Purchaser at the address set forth on
the signature page hereof, with a copy to:
Stephan G. Bachelder & Associates, P.A.
22 Free Street
Portland, Maine 04101
Attention: Stephan G. Bachelder, Esq.
---------
(iii) if to the CD&R Fund, to:
Clayton, Dubilier & Rice Fund V
Limited Partnership
Foulkstone Plaza, Suite 102
1403 Foulk Road
Wilmington, Delaware 19803
Attention: Joseph L. Rice, III
---------
All such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof. Copies of any notice or other communication given under this
Agreement shall also be given to:
Clayton, Dubilier & Rice, Inc.
375 Park Avenue
New York, New York 10152
Attention: Donald J. Gogel
---------
and
13
<PAGE>
Debevoise & Plimpton
875 Third Avenue
New York, New York 10022
Attention: Paul S. Bird, Esq.
---------
The CD&R Fund also shall be given a copy of any notice or other communication
between the Purchaser and Holding under this Agreement at its address as set
forth above.
(b) Binding Effect; Benefits. This Agreement shall be binding upon
------------------------
the parties to this Agreement and their respective successors and assigns and
shall inure to the benefit of the parties to this Agreement, the CD&R Fund and
their respective successors and assigns. Except as provided in Sections 4
through 6, inclusive, nothing in this Agreement, express or implied, is intended
or shall be construed to give any person other than the parties to this
Agreement, the CD&R Fund or their respective successors or assigns any legal or
equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.
(c) Waiver; Amendment.
-----------------
(i) Waiver. Any party hereto or beneficiary hereof may by written
------
notice to the other parties (A) extend the time for the performance of any
-
of the obligations or other actions of the other parties under this
Agreement, (B) waive compliance with any of the conditions or covenants of
-
the other parties contained in this Agreement and (C) waive or modify
-
performance of any of the obligations of the other parties under this
Agreement, provided that any waiver of the provisions of Sections 4 through
--------
6, inclusive, must be consented to in writing by the CD&R Fund. Except as
provided in the preceding sentence, no action taken pursuant to this
Agreement, including, without limitation, any investigation by or on behalf
of any party or beneficiary shall be deemed to constitute a waiver by the
party or beneficiary taking such action of compliance with any
representations, warranties, covenants or agreements contained herein. The
waiver by any party hereto or beneficiary hereof of a breach of any
provision of this Agreement shall not operate or be construed as a waiver
of any preceding or succeeding breach and no failure by a party to exercise
any right or privilege hereunder shall be deemed a waiver of such party's
or beneficiary's rights or privileges hereunder or shall be deemed a waiver
of such party's or beneficiary's rights to exercise the same at any
subsequent time or times hereunder.
14
<PAGE>
(ii) Amendment. This Agreement may not be amended, modified or
---------
supplemented orally, but only by a written instrument executed by the
Purchaser and Holding, and, in the case of any amendment, modification or
supplement to or affecting any of Sections 4 through 6, inclusive, or that
adversely affects the rights of the CD&R Fund hereunder, consented to by
the CD&R Fund in writing. The parties hereto acknowledge that Holding's
consent to an amendment or modification of this Agreement may be subject to
the terms and provisions of the Financing Agreements.
(d) Assignability. Except as provided herein, neither this Agreement
-------------
nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by Holding or the Purchaser without the prior written
consent of the other party hereto and the CD&R Fund; provided that this
--------
Agreement and the rights, remedies, obligations and liabilities of Holding shall
be assignable by holding to any Successor of Holding. Holding and the CD&R Fund
may assign from time to time all or any portion of its rights under Sections 4
through 6 hereof to one or more Affiliates designated by it.
(e) Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
--------------
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD REQUIRE APPLICATION OF
THE LAW OF ANOTHER JURISDICTION.
(f) Jurisdiction. The Purchaser hereby irrevocably and
------------
unconditionally submits, for him or her and his or her property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out or of relating to this
Agreement or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New
York State court or, to the extent permitted by law, in such Federal court. Each
of the parties hereby agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that Holding may otherwise have to bring any
action or proceeding relating to this Agreement against the Purchaser or his or
her properties in the courts of any jurisdiction. The Purchaser hereby
irrevocably and unconditionally waives, to the fullest extent he or she may
legally and effectively do so, any objection that he or she may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any New York or Federal court. Each of the parties
hereto hereby
15
<PAGE>
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.
(g) Section and Other Headings, etc. The section and other headings
-------------------------------
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.
(h) Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.
(i) Certain Definitions.
-------------------
"Affiliate": with respect to any Person, means any other Person that,
---------
directly or indirectly through one or more intermediaries, Controls, is
Controlled by, or is under common Control with the first Person, including but
not limited to a Subsidiary of the first Person, a Person of which the first
Person is a Subsidiary, or another Subsidiary of a Person of which the first
Person is also a Subsidiary.
"Control": with respect to any Person, means the possession, directly
-------
or indirectly, severally or jointly, of the power to direct or cause the
direction of the management policies of such Person, whether through the
ownership of voting securities, by contract or credit arrangement, as trustee or
executor, or otherwise.
"Person": any natural person, firm, partnership, limited liability
------
company, association, corporation, company, trust, business trust, governmental
authority or other entity.
"Subsidiary": with respect to any Person, each corporation or other
----------
Person in which the first Person owns or Controls, directly or indirectly,
capital stock or other ownership interests representing 50% or more of the
combined voting power of the outstanding voting stock or other ownership
interests of such corporation or other Person.
"Successor": of a Person means a Person that succeeds to the first
---------
Person's assets and liabilities by merger, liquidation, dissolution or otherwise
by operation of law, or a Person to which all or substantially all the assets
and/or business of the first Person are transferred.
16
<PAGE>
IN WITNESS WHEREOF, Holding and the Purchaser have executed this
Agreement as of the date first above written.
CDRJ INVESTMENTS (LUX) S.A.
By:_______________________________________
Name:
Title:
THE PURCHASER:
Name
By:______________________________________
as Attorney-in-Fact
Name:
Address of the Purchaser:
Address
Total Number of Shares
of Common Stock of
CDRJ Investments (Lux) S.A.
(RC Luxembourg B 63 119)
to be Purchased: Shares
Total Cash Purchase
Price: $Share Amount
17
<PAGE>
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Amendment No. 1 to Registration Statement No.
333-62989 of CDRJ Investments (Lux) S.A. of our report dated August 25, 1998
on the combined balance sheet of CDRJ Investments (Lux) S.A. as of April 28,
1998 appearing in the Prospectus, which is part of this Registration Statement
and to the reference to us under the heading "Experts" in such Prospectus.
DELOITTE & TOUCHE LLP
New York, NY
October 27, 1998
<PAGE>
EXHIBIT 23.2
ACCOUNTANTS' CONSENT WITH REPORT ON SCHEDULE
The Stockholders and Board of Directors
Jafra Cosmetics International:
The audits referred to in our report dated February 27, 1998, including the
related financial statement schedule for each of the years in the three-year
period ended December 31, 1997, are included in this registration statement on
Form S-4. This financial statement schedule is the responsibility of the
Company's management. Our responsibility is to express an opinion on this
financial statement schedule based on our audits. In our opinion, such
financial statement schedule, when considered in relation to the basic
combined financial statements taken as a whole, represents fairly in all
material respects the information set forth therein.
We consent to the use of our reports incorporated herein and to the
reference to our firm under the heading "Experts" in the prospectus which is
part of this registration statement.
KPMG Peat Marwick LLP
Los Angeles, California
October 27, 1998
<PAGE>
EXHIBIT 99.1
LETTER OF TRANSMITTAL
JAFRA COSMETICS INTERNATIONAL, INC. AND
JAFRA COSMETICS INTERNATIONAL, S.A. DE C.V., AS THE ISSUERS
Offer for all Outstanding
11 3/4% Senior Subordinated Notes Due 2008 of the Issuers
in Exchange for
11 3/4% Senior Subordinated Notes Due 2008 of the Issuers,
which Have Been Registered Under
the Securities Act of 1933, As Amended,
Pursuant to the Prospectus, dated October , 1998
THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON
NOVEMBER , 1998 UNLESS EXTENDED (THE "EXPIRATION DATE"). TENDERS MAY BE
WITHDRAWN PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
Delivery To: State Street Bank and Trust Company, Exchange Agent
<TABLE>
<S> <C>
By Mail: By Overnight Courier:
State Street Bank and Trust Company State Street Bank and Trust Company
P.O. Box 778 Two International Place
Boston, Massachusetts 02102 Boston, Massachusetts 02110
Attention: Corporate Trust Department Attention: Corporate Trust Department
Kellie Mullen Kellie Mullen
---------------- ----------------
By Hand: in New York (as Drop Agent) By Hand: in Boston
State Street Bank and Trust Company, N.A. State Street Bank and Trust Company
61 Broadway, 15th Floor Two International Place
Corporate Trust Window Fourth Floor, Corporate Trust
New York, New York 10006 Boston, Massachusetts 02110
</TABLE>
For Information Call:
(617) 664-5587
By Facsimile Transmission
(for Eligible Institutions only):
(617) 664-5314
Attention: Corporate Trust Department
Confirm by Telephone:
(617) 664-5314
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH
ABOVE, OR TRANSMISSION OF INSTRUCTIONS VIA FACSIMILE OTHER THAN AS SET FORTH
ABOVE, WILL NOT CONSTITUTE A VALID DELIVERY.
PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL
CAREFULLY BEFORE COMPLETING ANY BOX BELOW
<PAGE>
The undersigned acknowledges that he, she or it has received and reviewed
the Prospectus, dated October , 1998 (the "Prospectus"), of Jafra Cosmetics
International, Inc., a Delaware corporation, and Jafra Cosmetics
International, S.A. de C.V., a sociedad anonima de capital variable organized
under the laws of the United Mexican States (collectively, the "Issuers") and
this Letter of Transmittal (the "Letter"), which together constitute the
Issuers' offer (the "Exchange Offer") to exchange an aggregate principal
amount of up to $100,000,000 of their 11 3/4% Senior Subordinated Notes Due
2008 (the "New Notes"), which have been registered under the Securities Act of
1933, as amended (the "Securities Act"), for a like principal amount of the
Issuers' issued and outstanding 11 3/4% Senior Subordinated Notes Due 2008
(the "Existing Notes") from the registered holders thereof (the "Holders").
For each Existing Note accepted for exchange, the Holder of such Existing
Note will receive a New Note having a principal amount equal to that of the
surrendered Existing Note. The New Notes will bear interest from the most
recent date to which interest has been paid on the Existing Notes or, if no
interest has been paid on the Existing Notes, from April 30, 1998.
Accordingly, registered Holders of New Notes on the relevant record date for
the first interest payment date following the consummation of the Exchange
Offer will receive interest accruing from the most recent date to which
interest has been paid or, if no interest has been paid, from April 30, 1998.
Existing Notes accepted for exchange will cease to accrue interest from and
after the date of consummation of the Exchange Offer. Holders of Existing
Notes whose Existing Notes are accepted for exchange will not receive any
payment in respect of accrued interest on such Existing Notes otherwise
payable on any interest payment date the record date for which occurs on or
after consummation of the Exchange Offer.
This Letter is to be completed by a Holder of Existing Notes either if
certificates are to be forwarded herewith or if a tender of certificates for
Existing Notes, if available, is to be made by book-entry transfer to the
account maintained by the Exchange Agent at The Depository Trust Company (the
"Book-Entry Transfer Facility") pursuant to the procedures set forth in "The
Exchange Offer--Book-Entry Transfer" section of the Prospectus. Holders of
Existing Notes whose certificates are not immediately available, or who are
unable to deliver their certificates or confirmation of the book-entry tender
of their Existing Notes into the Exchange Agent's account at the Book-Entry
Transfer Facility (a "Book-Entry Confirmation") and all other documents
required by this Letter to the Exchange Agent on or prior to the Expiration
Date, must tender their Existing Notes according to the guaranteed delivery
procedures set forth in "The Exchange Offer--Guaranteed Delivery Procedures"
section of the Prospectus. See Instruction 1. Delivery of documents to the
Book-Entry Transfer Facility does not constitute delivery to the Exchange
Agent.
List below the Existing Notes to which this Letter relates. If the space
provided below is inadequate, the certificate numbers and principal amount of
Existing Notes should be listed on a separate signed schedule affixed hereto.
2
<PAGE>
<TABLE>
<CAPTION>
DESCRIPTION OF EXISTING NOTES 1 2 3
- ------------------------------------------------------------------------------
AGGREGATE
NAME(S) AND ADDRESS(ES) OF REGISTERED PRINCIPAL PRINCIPAL
HOLDER(S) CERTIFICATE AMOUNT OF AMOUNT
(PLEASE FILL IN, IF BLANK) NUMBER(S)* EXISTING NOTE(S) TENDERED**
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL
- ------------------------------------------------------------------------------
</TABLE>
* NEED NOT BE COMPLETED IF EXISTING NOTES ARE BEING TENDERED BY BOOK-
ENTRY TRANSFER.
** UNLESS OTHERWISE INDICATED IN THIS COLUMN, A HOLDER WILL BE DEEMED TO
HAVE TENDERED ALL OF THE EXISTING NOTES REPRESENTED BY THE EXISTING NOTES
INDICATED IN COLUMN 2. SEE INSTRUCTION 2. EXISTING NOTES TENDERED HEREBY
MUST BE IN DENOMINATIONS OF PRINCIPAL AMOUNT OF $1,000 AND ANY INTEGRAL
MULTIPLE THEREOF. SEE INSTRUCTION 1.
[_]CHECK HERE IF TENDERED EXISTING NOTES ARE BEING DELIVERED BY BOOK-ENTRY
TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH THE
BOOK-ENTRY TRANSFER FACILITY AND COMPLETE THE FOLLOWING:
Name of Tendering Institution ____________ [_] The Depository Trust
Company
Account Number _____________________ Transaction Code Number _____________
[_]CHECK HERE IF TENDERED EXISTING NOTES ARE BEING DELIVERED PURSUANT TO A
NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE EXCHANGE AGENT AND
COMPLETE THE FOLLOWING:
Name(s) of Registered Holder(s) ____________________________________________
Window Ticket Number (if any) ______________________________________________
Date of Execution of Notice of Guaranteed Delivery _________________________
Name of Institution Which Guaranteed Delivery ______________________________
IF DELIVERED BY BOOK-ENTRY TRANSFER, COMPLETE THE FOLLOWING:
Account Number ______________________ Transaction Code Number _____________
[_]CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
THERETO WITHIN 90 DAYS AFTER THE EXPIRATION DATE.
Name: _________________________________________________________________________
Address: ______________________________________________________________________
__________________________________________________________________________
If the undersigned is not a broker-dealer, the undersigned represents that
it is not engaged in, and does not intend to engage in, a distribution of New
Notes. If the undersigned is a broker-dealer that will receive New Notes for
its own account in exchange for Existing Notes that were acquired as a result
of market-making activities or other trading activities, it acknowledges that
it will deliver a prospectus meeting the requirements of the Securities Act of
1933, as amended, in connection with any resale of such New Notes; however, by
so acknowledging and by delivering such a prospectus the undersigned will not
be deemed to admit that it is an "underwriter" within the meaning of the
Securities Act of 1933, as amended. If the undersigned is a broker-dealer that
will receive New Notes, it represents that the Existing Notes to be exchanged
for the New Notes were acquired as a result of market-making activities or
other trading activities.
3
<PAGE>
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
Ladies and Gentlemen:
Upon the terms and subject to the conditions of the Exchange Offer, the
undersigned hereby tenders to the Issuers the aggregate principal amount of
Existing Notes indicated above. Subject to, and effective upon, the acceptance
for exchange of the Existing Notes tendered hereby, the undersigned hereby
sells, assigns and transfers to, or upon the order of, the Issuers all right,
title and interest in and to such Existing Notes as are being tendered hereby.
The undersigned hereby irrevocably constitutes and appoints the Exchange
Agent as the undersigned's true and lawful agent and attorney-in-fact with
respect to such tendered Existing Notes, with full power of substitution,
among other things, to cause the Existing Notes to be assigned, transferred
and exchanged. The undersigned hereby represents and warrants that the
undersigned has full power and authority to tender, sell, assign and transfer
the Existing Notes, and to acquire New Notes issuable upon the exchange of
such tendered Existing Notes, and that, when the same are accepted for
exchange, the Issuers will acquire good and unencumbered title thereto, free
and clear of all liens, restrictions, charges and encumbrances and not subject
to any adverse claim when the same are accepted by the Issuers. The
undersigned hereby further represents and warrants that any New Notes acquired
in exchange for Existing Notes tendered hereby will have been acquired in the
ordinary course of business of the person receiving such New Notes, whether or
not such person is the undersigned, that neither the Holder of such Existing
Notes nor any such other person is participating in, intends to participate in
or has an arrangement or understanding with any person to participate in the
distribution (within the meaning of the Securities Act of 1933, as amended
(the "Securities Act")) of such New Notes, that neither the Holder of such
Existing Notes nor any such other person is an "affiliate," as defined in Rule
405 under the Securities Act, of the Company, and that neither the Holder of
such Existing Notes nor such other person is acting on behalf of any person
who could not truthfully make the foregoing representations and warranties.
The undersigned acknowledges that this Exchange Offer is being made in
reliance on interpretations by the staff of the Securities and Exchange
Commission (the "SEC"), as set forth in no-action letters issued to third
parties, that the New Notes issued pursuant to the Exchange Offer in exchange
for the Existing Notes may be offered for resale, resold and otherwise
transferred by Holders thereof (other than any such Holder that is an
"affiliate" of the Issuers within the meaning of Rule 405 under the Securities
Act), without compliance with the registration and prospectus delivery
provisions of the Securities Act, provided that such New Notes are acquired in
the ordinary course of such Holder's business and such Holder has no
arrangement with any person to participate in the distribution of such New
Notes. However, the SEC has not considered the Exchange Offer in the context
of a no-action letter and there can be no assurance that the staff of the SEC
would make a similar determination with respect to the Exchange Offer as in
other circumstances. If the undersigned is not a broker-dealer, the
undersigned represents that it is not engaged in, and does not intend to
engage in, a distribution of New Notes and has no arrangement or understanding
to participate in a distribution of New Notes. If any Holder is an affiliate
of the Issuers, is engaged in or intends to engage in or has any arrangement
or understanding with respect to the distribution of the New Notes to be
acquired pursuant to the Exchange Offer, such Holder (i) could not rely on the
applicable interpretations of the staff of the SEC and (ii) must comply with
the registration and prospectus delivery requirements of the Securities Act in
connection with any resale transaction. If the undersigned is a broker-dealer
that will receive New Notes for its own account in exchange for Existing
Notes, it represents that the Existing Notes to be exchanged for the New Notes
were acquired by it as a result of market-making activities or other trading
activities and acknowledges that it will deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such New
Notes; however, by so acknowledging and by delivering a prospectus meeting the
requirements of the Securities Act, the undersigned will not be deemed to
admit that it is an "underwriter" within the meaning of the Securities Act.
The SEC has taken the position that such broker-dealers may fulfill their
prospectus delivery requirements with respect to the New Notes (other than a
resale of New Notes received in exchange for an unsold allotment from the
original sale of the Existing Notes) with the Prospectus. The Prospectus, as
it may be amended or
4
<PAGE>
supplemented from time to time, may be used by such broker-dealers for a
period of time, starting on the Expiration Date and ending on the close of
business 90 days after the Expiration Date in connection with the sale or
transfer of such New Notes. The Issuers have agreed that, for such period of
time, it will make the Prospectus (as it may be amended or supplemented)
available to a broker-dealer which elects to exchange Existing Notes, acquired
for its own account as a result of market making or other trading activities,
for New Notes pursuant to the Exchange Offer (each a "Participating Broker-
Dealer") for use in connection with any resale of such New Notes. By accepting
the Exchange Offer, each broker-dealer that receives New Notes pursuant to the
Exchange Offer acknowledges and agrees to notify the Issuers prior to using
the Prospectus in connection with the sale or transfer of New Notes and that,
upon receipt of notice from the Issuers of the happening of any event which
makes any statement in the Prospectus untrue in any material respect or which
requires the making of any changes in the Prospectus in order to make the
statements therein not misleading, such broker-dealer will suspend use of the
Prospectus until (i) the Issuers have amended or supplemented the Prospectus
to correct such misstatement or omission and (ii) either the Issuers have
furnished copies of the amended or supplemented Prospectus to such broker-
dealer or, if the Issuers have not otherwise agreed to furnish such copies and
declines to do so after such broker-dealer so requests, such broker-dealer has
obtained a copy of such amended or supplemented Prospectus as filed with the
SEC. The Issuers agree, if requested, to deliver such notice and such amended
or supplemented Prospectus promptly to any Participating Broker-Dealer from
whom the Issuers have received prior written notice that it will be a
Participating Broker-Dealer in the Exchange Offer. Except as described above,
the Prospectus may not be used for or in connection with an offer to resell, a
resale or any other retransfer of New Notes. A broker-dealer that acquired
Existing Notes in a transaction other than as part of its market-making
activities or other trading activities will not be able to participate in the
Exchange Offer.
The undersigned will, upon request, execute and deliver any additional
documents deemed by the Issuers to be necessary or desirable to complete the
sale, assignment and transfer of the Existing Notes tendered hereby. All
authority conferred or agreed to be conferred in this Letter and every
obligation of the undersigned hereunder shall be binding upon the successors,
assigns, heirs, executors, administrators, trustees in bankruptcy and legal
representatives of the undersigned and shall not be affected by, and shall
survive, the death or incapacity of the undersigned. This tender may be
withdrawn only in accordance with the procedures set forth in "The Exchange
Offer--Withdrawal of Tenders" section of the Prospectus.
Unless otherwise indicated herein in the box entitled "Special Issuance
Instructions" below, please deliver the New Notes (and, if applicable,
substitute certificates representing Existing Notes for any Existing Notes not
exchanged) in the name of the undersigned or, in the case of a book-entry
delivery of Existing Notes, please credit the account indicated above
maintained at the Book-Entry Transfer Facility. Similarly, unless otherwise
indicated under the box entitled "Special Delivery Instructions" below, please
send the New Notes (and, if applicable, substitute certificates representing
Existing Notes for any Existing Notes not exchanged) to the undersigned at the
address shown above in the box entitled "Description of Existing Notes."
THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED "DESCRIPTION OF EXISTING
NOTES" ABOVE AND SIGNING THIS LETTER, WILL BE DEEMED TO HAVE TENDERED THE
EXISTING NOTES AS SET FORTH IN SUCH BOX ABOVE.
PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL
5
<PAGE>
CAREFULLY BEFORE COMPLETING ANY BOX ABOVE.
PLEASE SIGN HERE
(TO BE COMPLETED BY ALL TENDERING HOLDERS)
X , 1998
X , 1998
Signature(s) of Owner Date
Area Code and Telephone Number ________________________________
If a Holder is tendering an Existing Note, this Letter must be
signed by the registered Holder(s) as the name(s) appear(s) on
the certificate(s) for the Existing Note or by any person(s)
authorized to become registered Holder(s) by endorsements and
documents transmitted herewith. If signature is by a trustee,
executor, administrator, guardian, officer or other person
acting in a fiduciary or representative capacity, please set
forth full title. See Instruction 3.
Name(s) _______________________________________________________
---------------------------------------------------------------
(PLEASE TYPE OR PRINT)
Capacity: _____________________________________________________
Address: ______________________________________________________
_______________________________________________________________
SIGNATURE GUARANTEE
(IF REQUIRED BY INSTRUCTION 3)
SIGNATURE(S) GUARANTEED BY AN ELIGIBLE INSTITUTION: ___________
(AUTHORIZED SIGNATURE)
_______________________________________________________________
(TITLE)
_______________________________________________________________
(NAME AND FIRM)
DATED::__________________________________________________, 1998
(PLEASE COMPLETE ACCOMPANYING SUBSTITUTE FORM W-9 HEREIN)
6
<PAGE>
SPECIAL ISSUANCE INSTRUCTIONS SPECIAL DELIVERY INSTRUCTIONS
(SEE INSTRUCTIONS 3,4 AND 6) (SEE INSTRUCTIONS 3,4 AND 6)
To be completed ONLY if To be completed ONLY if
certificates for Existing Notes certificates for Existing Notes
not exchanged and/or New Notes not exchanged and/or New Notes
are to be issued in the name of are to be sent to someone other
and sent to someone other than than the person or persons whose
the person or persons whose signature(s) appear(s) on this
signature(s) appear(s) on this Letter above or to such person
Letter above, or if Existing or persons at an address other
Notes delivered by book-entry than shown in the box entitled
transfer which are not accepted "Description of Existing Notes"
for exchange are to be returned on this Letter above.
by credit to an account
maintained at the Book-Entry
Transfer Facility other than the
account indicated above.
Mail: New Notes and/or Existing
Notes to:
Names(s) ________________________
Issue: New Notes and/or Existing
Notes to:
(PLEASE TYPE OR PRINT)
Name(s) _________________________
(PLEASE TYPE OR PRINT) _________________________________
(PLEASE TYPE OR PRINT)
_________________________________
(PLEASE TYPE OR PRINT) Address _________________________
Address _________________________ _________________________________
(ZIP CODE)
_________________________________
(ZIP CODE)
(COMPLETE SUBSTITUTE FORM W-9)
[_]Credit unexchanged Existing
Notes delivered by book-entry
transfer to the Book-Entry
Transfer Facility account set
forth below.
_________________________________
(BOOK-ENTRY TRANSFER FACILITY)
ACCOUNT NUMBER, IF APPLICABLE)
IMPORTANT: UNLESS GUARANTEED DELIVERY PROCEDURES ARE COMPLIED WITH, THIS
LETTER OR A FACSIMILE HEREOF (TOGETHER WITH THE CERTIFICATES FOR EXISTING
NOTES OR A BOOK-ENTRY CONFIRMATION AND ALL OTHER REQUIRED DOCUMENTS) MUST BE
RECEIVED BY THE EXCHANGE AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE
EXPIRATION DATE.
7
<PAGE>
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE EXCHANGE OFFER FOR THE 11 3/4%
SENIOR SUBORDINATED NOTES DUE 2008 OF JAFRA COSMETICS INTERNATIONAL, INC.
AND JAFRA COSMETICS INTERNATIONAL, S.A. DE C.V.
IN EXCHANGE FOR THE 11 3/4% SENIOR SUBORDINATED NOTES DUE 2008 OF
JAFRA COSMETICS INTERNATIONAL, INC. AND JAFRA COSMETICS INTERNATIONAL, S.A. DE
C.V.,
WHICH HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED
1. DELIVERY OF THIS LETTER AND NOTES; GUARANTEED DELIVERY PROCEDURES.
This Letter is to be completed by Holders of Existing Notes either if
certificates are to be forwarded herewith or if tenders are to be made
pursuant to the procedures for delivery by book-entry transfer set forth in
"The Exchange Offer--Book-Entry Transfer" section of the Prospectus.
Certificates for all physically tendered Existing Notes, or Book-Entry
Confirmation, as the case may be, as well as a properly completed and duly
executed Letter (or manually signed facsimile hereof) and any other documents
required by this Letter, must be received by the Exchange Agent at the address
set forth herein on or prior to the Expiration Date, or the tendering Holder
must comply with the guaranteed delivery procedures set forth below. Existing
Notes tendered hereby must be in denominations of principal amount of $1,000
and any integral multiple thereof.
Holders whose certificates for Existing Notes are not immediately available
or who cannot deliver their certificates and all other required documents to
the Exchange Agent on or prior to the Expiration Date, or who cannot complete
the procedure for book entry transfer on a timely basis, may tender their
Existing Notes pursuant to the guaranteed delivery procedures set forth in
"The Exchange Offer--Guaranteed Delivery Procedures" section of the
Prospectus. Pursuant to such procedures, (i) such tender must be made through
an Eligible Institution, (ii) prior to 5:00 P.M., New York City time, on the
Expiration Date, the Exchange Agent must receive from such Eligible
Institution a properly completed and duly executed Letter (or a facsimile
thereof) and Notice of Guaranteed Delivery, substantially in the form provided
by the Issuers (by facsimile transmission, mail or hand delivery), setting
forth the name and address of the Holder of Existing Notes and the amount of
Existing Notes tendered, stating that the tender is being made thereby and
guaranteeing that within three New York Stock Exchange ("NYSE") trading days
after the Expiration Date, the certificates for all physically tendered
Existing Notes, in proper form for transfer, or a Book-Entry Confirmation, as
the case may be, and any other documents required by this Letter will be
deposited by the Eligible Institution with the Exchange Agent, and (iii) the
certificates for all physically tendered Existing Notes, in proper form for
transfer, or a Book-Entry Confirmation, as the case may be, and all other
documents required by this Letter, are received by the Exchange Agent within
three NYSE trading days after the Expiration Date.
The method of delivery of this Letter, the Existing Notes and all other
required documents is at the election and risk of the tendering Holders, but
the delivery will be deemed made only when actually received or confirmed by
the Exchange Agent. If Existing Notes are sent by mail, it is suggested that
the mailing be registered mail, properly insured, with return receipt
requested, made sufficiently in advance of the Expiration Date to permit
delivery to the Exchange Agent prior to 5:00 P.M., New York City time, on the
Expiration Date.
See "The Exchange Offer" section of the Prospectus.
2. PARTIAL TENDERS (NOT APPLICABLE TO NOTEHOLDERS WHO TENDER BY BOOK-ENTRY
TRANSFER).
If less than all of the Existing Notes evidenced by a submitted certificate
are to be tendered, the tendering Holder(s) should fill in the aggregate
principal amount of Existing Notes to be tendered in the box above entitled
"Description of Existing Notes--Principal Amount Tendered." A reissued
certificate representing the balance of nontendered Existing Notes will be
sent to such tendering Holder, unless otherwise provided in the appropriate
box on this Letter, promptly after the Expiration Date. ALL OF THE EXISTING
NOTES DELIVERED TO THE EXCHANGE AGENT WILL BE DEEMED TO HAVE BEEN TENDERED
UNLESS OTHERWISE INDICATED.
8
<PAGE>
3. SIGNATURES ON THIS LETTER; BOND POWERS AND ENDORSEMENTS; GUARANTEE OF
SIGNATURES.
If this Letter is signed by the registered Holder of the Existing Notes
tendered hereby, the signature must correspond exactly with the name as
written on the face of the certificates without any change whatsoever.
If any tendered Existing Notes are owned of record by two or more joint
owners, all of such owners must sign this Letter.
If any tendered Existing Notes are registered in different names on several
certificates, it will be necessary to complete, sign and submit as many
separate copies of this Letter as there are different registrations of
certificates.
When this Letter is signed by the registered Holder or Holders of the
Existing Notes specified herein and tendered hereby, no endorsements of
certificates or separate bond powers are required. If, however, the New Notes
are to be issued, or any untendered Existing Notes are to be reissued, to a
person other than the registered Holder, then endorsements of any certificates
transmitted hereby or separate bond powers are required. Signatures on such
certificate(s) must be guaranteed by an Eligible Institution.
If this Letter is signed by a person other than the registered Holder or
Holders of any certificate(s) specified herein, such certificate(s) must be
endorsed or accompanied by appropriate bond powers, in either case signed
exactly as the name or names of the registered Holder or Holders appear(s) on
the certificate(s) and signatures on such certificate(s) must be guaranteed by
an Eligible Institution.
If this Letter or any certificates or bond powers are signed by trustees,
executors, administrators, guardians, attorneys-in-fact, officers of
corporations or others acting in a fiduciary or representative capacity, such
persons should so indicate when signing, and, unless waived by the Issuers,
proper evidence satisfactory to the Issuers of their authority to so act must
be submitted.
ENDORSEMENTS ON CERTIFICATES FOR EXISTING NOTES OR SIGNATURES ON BOND POWERS
REQUIRED BY THIS INSTRUCTION 3 MUST BE GUARANTEED BY A FIRM WHICH IS A
FINANCIAL INSTITUTION (INCLUDING MOST BANKS, SAVINGS AND LOAN ASSOCIATIONS AND
BROKERAGE HOUSES) THAT IS A PARTICIPANT IN THE SECURITIES TRANSFER AGENTS
MEDALLION PROGRAM, THE NEW YORK STOCK EXCHANGE MEDALLION SIGNATURE PROGRAM OR
THE STOCK EXCHANGES MEDALLION PROGRAM (EACH AN "ELIGIBLE INSTITUTION").
SIGNATURES ON THIS LETTER NEED NOT BE GUARANTEED BY AN ELIGIBLE INSTITUTION,
PROVIDED THE EXISTING NOTES ARE TENDERED: (I) BY A REGISTERED HOLDER OF
EXISTING NOTES (WHICH TERM, FOR PURPOSES OF THE EXCHANGE OFFER, INCLUDES ANY
PARTICIPANT IN THE BOOK-ENTRY TRANSFER FACILITY SYSTEM WHOSE NAME APPEARS ON A
SECURITY POSITION LISTING AS THE HOLDER OF SUCH EXISTING NOTES) WHO HAS NOT
COMPLETED THE BOX ENTITLED "SPECIAL ISSUANCE INSTRUCTIONS" OR "SPECIAL
DELIVERY INSTRUCTIONS" THIS LETTER, OR (II) FOR THE ACCOUNT OF AN ELIGIBLE
INSTITUTION.
4. SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS.
Tendering Holders of Existing Notes should indicate in the applicable box
the name and address to which New Notes issued pursuant to the Exchange Offer
and or substitute certificates evidencing Existing Notes not exchanged are to
be issued or sent, if different from the name or address of the person signing
this Letter. In the case of issuance in a different name, the employer
identification or social security number of the person named must also be
indicated. Holders tendering Existing Notes by book-entry transfer may request
that Existing Notes not exchanged be credited to such account maintained at
the Book-Entry Transfer Facility as such Holder may designate hereon. If no
such instructions are given, such Existing Notes not exchanged will be
returned to the name and address of the person signing this Letter.
5. TAXPAYER IDENTIFICATION NUMBER.
Federal income tax law generally requires that a tendering Holder whose
Existing Notes are accepted for exchange must provide the Issuers (as payors),
or the Paying Agent designated by the Issuers to act on its behalf,
9
<PAGE>
with such Holder's correct Taxpayer Identification Number ("TIN") on
Substitute Form W-9 below, which in the case of a tendering Holder who is an
individual, is his or her social security number. If the Issuers are not
provided with the current TIN or an adequate basis for an exemption from
backup withholding, such tendering Holder may be subject to a $50 penalty
imposed by the Internal Revenue Service. In addition, the Exchange Agent may
be required to withhold 31% of the amount of any reportable payments made
after the exchange of such tendering Holder of New Notes. If withholding
results in an overpayment of taxes, a refund may be obtained.
Exempt Holders of Existing Notes (including, among others, all corporations
and certain foreign individual) are not subject to these backup withholding
and reporting requirements. See the enclosed Guidelines of Certification of
Taxpayer Identification Number on Substitute Form W-9 (the "W-9 Guidelines")
for additional instructions.
To prevent backup withholding, each tendering Holder of Existing Notes must
provide its correct TIN by completing the Substitute Form W-9 set forth below,
certifying, under penalties of perjury, that the TIN provided is correct (or
that such Holder is awaiting a TIN) and that (i) the Holder is exempt from
backup withholding, or (ii) the Holder has not been notified by the Internal
Revenue Service that such Holder is subject to backup withholding as a result
of a failure to report all interest or dividends or (iii) the Internal Revenue
Service has notified the Holder that such Holder is no longer subject to
backup withholding. If the tendering Holder of Existing Notes is a nonresident
alien or foreign entity not subject to backup withholding, such Holder must
give the Exchange Agent a completed Form W-8, Certificate of Foreign Status.
This form may be obtained from the Exchange Agent. If the Existing Notes are
in more than one name or are not in the name of the actual owner, such Holder
should consult the W-9 Guidelines for information on which TIN to report. If
such Holder does not have a TIN, such Holder should consult the W-9 Guidelines
for instructions on applying for a TIN, check the box in Part 2 of the
Substitute Form W-9 and write "applied for" in lieu of its TIN. Note: Checking
this box and writing "applied for" on the form means that such Holder has
already applied for a TIN or that such Holder intends to apply for one in the
near future. If the box in Part 2 of the Substitute Form W-9 is checked, the
Exchange Agent will retain 31% of reportable payments made to a Holder during
the sixty (60) day period following the date of the Substitute Form W-9. If
the Holder furnishes the Exchange Agent with his or her TIN within sixty (60)
days of the date of the Substitute Form W-9, the Exchange Agent will remit
such amounts retained during such sixty (60) day period to such Holder and no
further amounts will be retained or withheld from payments made to the Holder
thereafter. If, however, such holder does not provide its TIN to the Exchange
Agent within such sixty (60) day period, the Exchange Agent will remit such
previously withheld amounts to the Internal Revenue Service as backup
withholding and will withhold 31% of all reportable payments to the Holder
thereafter until such Holder furnishes its TIN to the Exchange Agent.
6. TRANSFER TAXES.
The Issuers will pay all transfer taxes, if any, applicable to the transfer
of Existing Notes to it or its order pursuant to the Exchange Offer. If,
however, New Notes and/or substitute Existing Notes not exchanged are to be
delivered to, or are to be registered or issued in the name of, any person
other than the registered Holder of the Existing Notes tendered hereby, or if
tendered Existing Notes are registered in the name of any person other than
the person signing this Letter, or if a transfer tax is imposed for any reason
other than the transfer of Existing Notes to the Issuers or its order pursuant
to the Exchange Offer, the amount of any such transfer taxes (whether imposed
on the registered Holder or any other persons) will be payable by the
tendering Holder. If satisfactory evidence of payment of such taxes or
exemption therefrom is not submitted herewith, the amount of such transfer
taxes will be billed directly to such tendering Holder.
EXCEPT AS PROVIDED IN THIS INSTRUCTION 6, IT WILL NOT BE NECESSARY FOR
TRANSFER TAX STAMPS TO BE AFFIXED TO THE EXISTING NOTES SPECIFIED IN THIS
LETTER.
7. WAIVER OF CONDITIONS.
The Issuers reserve the absolute right to waive satisfaction of any or all
conditions enumerated in the Prospectus.
10
<PAGE>
8. NO CONDITIONAL TENDERS.
No alternative, conditional, irregular or contingent tenders will be
accepted. All tendering Holders of Existing Notes, by execution of this
Letter, shall waive any right to receive notice of the acceptance of their
Existing Notes for exchange.
Neither the Issuers, the Exchange Agent nor any other person is obligated to
give notice of any defect or irregularity with respect to any tender of
Existing Notes nor shall any of them incur any liability for failure to give
any such notice.
9. MUTILATED, LOST, STOLEN OR DESTROYED EXISTING NOTES.
Any Holder whose Existing Notes have been mutilated, lost, stolen or
destroyed should contact the Exchange Agent at the address indicated above for
further instructions.
10. WITHDRAWAL RIGHTS.
Tenders of Existing Notes may be withdrawn at any time prior to 5:00 P.M.,
New York City time, on the Expiration Date.
For a withdrawal of a tender of Existing Notes to be effective, a written
notice of withdrawal must be received by the Exchange Agent at the address set
forth above prior to 5:00 P.M., New York City time, on the Expiration Date.
Any such notice of withdrawal must (i) specify the name of the person having
tendered the Existing Notes to be withdrawn (the "Depositor"), (ii) identify
the Existing Notes to be withdrawn (including certificate number or numbers
and the principal amount of such Existing Notes), (iii) contain a statement
that such Holder is withdrawing his election to have such Existing Notes
exchanged, (iv) be signed by the Holder in the same manner as the original
signature on the Letter by which such Existing Notes were tendered (including
any required signature guarantees) or be accompanied by documents of transfer
to have the Trustee with respect to the Existing Notes register the transfer
of such Existing Notes in the name of the person withdrawing the tender and
(v) specify the name in which such Existing Notes are registered, if different
from that of the Depositor. If Existing Notes have been tendered pursuant to
the procedure for book-entry transfer set forth in "The Exchange Offer--Book-
Entry Transfer" section of the Prospectus, any notice of withdrawal must
specify the name and number of the account at the Book-Entry Transfer Facility
to be credited with the withdrawn Existing Notes and otherwise comply with the
procedures of such facility. All questions as to the validity, form and
eligibility (including time of receipt) of such notices will be determined by
the Issuers, whose determination shall be final and binding on all parties.
Any Existing Notes so withdrawn will be deemed not to have been validly
tendered for exchange for purposes of the Exchange Offer and no New Notes will
be issued with respect thereto unless the Existing Notes so withdrawn are
validly retendered. Any Existing Notes that have been tendered for exchange
but which are not exchanged for any reason will be returned to the Holder
thereof without cost to such Holder (or, in the case of Existing Notes
tendered by book-entry transfer into the Exchange Agent's account at the Book-
Entry Transfer Facility pursuant to the book-entry transfer procedures set
forth in "The Exchange Offer--Book-Entry Transfer" section of the Prospectus,
such Existing Notes will be credited to an account maintained with the Book-
Entry Transfer Facility for the Existing Notes) as soon as practicable after
withdrawal, rejection of tender or termination of the Exchange Offer. Properly
withdrawn Existing Notes may be retendered by following the procedures
described above at any time on or prior to 5:00 P.M., New York City time, on
the Expiration Date.
11. REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES.
Questions relating to the procedure for tendering, as well as requests for
additional copies of the Prospectus and this Letter, and requests for Notices
of Guaranteed Delivery and other related documents may be directed to the
Exchange Agent, at the address and telephone number indicated above.
11
<PAGE>
TO BE COMPLETED BY ALL TENDERING HOLDERS
(SEE INSTRUCTION 5)
PAYOR'S NAME: STATE STREET BANK AND TRUST COMPANY, AS PAYING AGENT
PART 1-PLEASE PROVIDE YOUR
TIN IN THE BOX AT RIGHT AND
CERTIFY BY SIGNING AND DAT-
ING BELOW
TIN:___________________
SUBSTITUTE
Social Security Number%
or Employer
identification number
Form W-9 Department of the Treasury Internal Revenue Service
-------------------------------------------------------------------
PAYOR'S
REQUEST
FOR
TAXPAYER
IDENTIFICATION
NUMBER
("TIN")
AND
CERTIFICATIONS
PART 2--TIN APPLIED FOR [_]
CERTIFICATION: UNDER THE PENALTIES OF PERJURY, I CERTIFY THAT:
-------------------------------------------------------------------
(1) the number shown on this form is my correct Taxpayer
Identification Number (or I am waiting for a number to be
issued to me).
(2) I am not subject to backup withholding either because: (a) I
am exempt from backup withholding, or (b) I have not been
notified by the Internal Revenue Service (the "IRS") that I
am subject to backup withholding as a result of a failure to
report all interest or dividends, or (c) the IRS has
notified me that I am no longer subject to backup
withholding, and
(3) any other information provided on this form is true and
correct.
SIGNATURE _____________________ DATE __________________________
- --------------------------------------------------------------------------------
You must cross our item (2) of the above certification if you have been
notified by the IRS that you are subject to backup withholding because of
underreporting of interest or dividends on your tax return and you have not
been notified by the IRS that you are no longer subject to backup
withholding.
YOU MUST COMPLETE THE FOLLOWING CERTIFICATE IF YOU CHECKED THE BOX
IN PART 2 OF SUBSTITUTE FORM W-9
CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
I certify under penalties of perjury that a taxpayer identification number
has not been issued to me, and either (a) I have mailed or delivered an
application to receive a taxpayer identification number to the appropriate
Internal Revenue Service Center or Social Security Administration Office or
(b) I intend to mail or deliver an application in the near future. I
understand that if I do not provide a taxpayer identification number by the
time of the exchange, 31 percent of all reportable payments made to me
thereafter will be withheld until I provide a number.
____________________________________ ____________________________________
SIGNATURE DATE
NOTE: FAILURE TO COMPLETE THIS FORM MAY RESULT IN BACKUP WITHHOLDING OF 31% OF
ANY PAYMENTS MADE TO YOU PURSUANT TO THE TENDER OFFER AND/OR THE
SOLICITATION. PLEASE REVIEW THE ENCLOSED GUIDELINES FOR CERTIFICATION OF
TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE FORM W-9 FOR ADDITIONAL
DETAILS.
12
<PAGE>
EXHIBIT 99.2
NOTICE OF GUARANTEED DELIVERY
FOR
JAFRA COSMETICS INTERNATIONAL, INC. AND
JAFRA COSMETICS INTERNATIONAL, S.A. DE C.V., AS THE ISSUERS
11 3/4% SENIOR SUBORDINATED NOTES DUE 2008
This form or one substantially equivalent hereto must be used to accept the
Exchange Offer of Jafra Cosmetics International, Inc. and Jafra Cosmetics
Investments, S.A. de C.V. (collectively, the "Issuers"), made pursuant to the
Prospectus, dated October , 1998 (the "Prospectus"), if certificates for the
outstanding 11 3/4% Senior Subordinated Notes Due 2008 of the Issuers (the
"Existing Notes") are not immediately available or if the procedure for book-
entry transfer cannot be completed on a timely basis or time will not permit
all required documents to reach State Street Bank and Trust Company, as
exchange agent (the "Exchange Agent") prior to 5:00 P.M., New York City time,
on the Expiration Date of the Exchange Offer. Such form may be delivered or
transmitted by facsimile transmission, mail or hand delivery to the Exchange
Agent as set forth below. In addition, in order to utilize the guaranteed
delivery procedure to tender Existing Notes pursuant to the Exchange Offer, a
completed, signed and dated Letter of Transmittal (or facsimile thereof) must
also be received by the Exchange Agent prior to 5:00 P.M., New York City time,
on the Expiration Date. Capitalized terms not defined herein are defined in
the Prospectus or the Letter of Transmittal.
Delivery To: State Street Bank and Trust Company, Exchange Agent
By Overnight Courier:
By Mail:
State Street Bank and Trust Company
State Street Bank and Trust Company Two International Place
P.O. Box 778 Boston, Massachusetts 02110
Boston, Massachusetts 02102 Attention: Corporate Trust Department
Attention: Corporate Trust Department Kellie Mullen
Kellie Mullen
By Hand: in Boston
By Hand: in New York (as Drop Agent)
State Street Bank and Trust Company
State Street Bank and Trust Company, Two International Place
N.A. Fourth Floor, Corporate Trust
61 Broadway, 15th Floor Boston, Massachusetts 02110
Corporate Trust Window
New York, New York 10006
For Information Call:
(617) 664-5587
By Facsimile Transmission
(for Eligible Institutions only):
(617) 664-5314
Attention: Corporate Trust Department
Confirm by Telephone:
(617) 664-5314
DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE, OR
TRANSMISSION OF INSTRUCTIONS VIA FACSIMILE OTHER THAN AT SET FORTH ABOVE, WILL
NOT CONSTITUTE A VALID DELIVERY.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
<PAGE>
Ladies and Gentlemen:
Upon the terms and conditions set forth in the Prospectus and the
accompanying Letter of Transmittal, the undersigned hereby tenders to the
Issuers the principal amount of Existing Notes set forth below pursuant to the
guaranteed delivery procedure described in "The Exchange Offer--Guaranteed
Delivery Procedures" section of the Prospectus.
Certificate Number(s) Aggregate Principal Aggregate Principal
(if known) of Existing Amount Represented Amount Tendered
Notes or Account (if less than all)*
Number at the Book-
Entry Facility
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
* Unless otherwise indicated, the Holder will be deemed to have tendered the
full aggregate principal amount represented by such existing notes.
- -------------------------------------------------------------------------------
ALL AUTHORITY HEREIN CONFERRED OR AGREED TO BE CONFERRED SHALL SURVIVE THE
DEATH OR INCAPACITY OF THE UNDERSIGNED AND EVERY OBLIGATION OF THE UNDERSIGNED
HEREUNDER SHALL BE BINDING UPON THE HEIRS, PERSONAL REPRESENTATIVES,
SUCCESSORS AND ASSIGNS OF THE UNDERSIGNED.
- -------------------------------------------------------------------------------
PLEASE SIGN HERE
X___________________________________________________ _________________________
X___________________________________________________ _________________________
Signature(s) of Owner(s) Date
or Authorized Signatory
Area Code and Telephone Number: __________________
Must be signed by the Holder(s) of Existing Notes as their name(s) appear(s)
on certificates for Existing Notes or on a security position listing, or by
person(s) authorized to become registered Holder(s) by endorsement and
documents transmitted with this Notice of Guaranteed Delivery. If signature is
by a trustee, executor, administrator, guardian, attorney-in-fact, officer or
other person acting in a fiduciary or representative capacity, such person
must set forth his or her full title below.
PLEASE PRINT NAME(S) AND ADDRESS(ES)
Name(s):_______________________________________________________________________
Capacity:______________________________________________________________________
Address(es):___________________________________________________________________
2
<PAGE>
GUARANTEE
(Not to be used for signature guarantee)
The undersigned, a financial institution (including most banks, savings and
loan associations and brokerage houses) that is a participant in the
Securities Transfer Agents Medallion Program, the New York Stock Exchange
Medallion Signature Program or the Stock Exchanges Medallion Program, hereby
guarantees that the certificates representing the principal amount of Existing
Notes tendered hereby in proper form for transfer, or timely confirmation of
the book-entry transfer of such Existing Notes into the Exchange Agent's
account at The Depository Trust Company pursuant to the procedures set forth
in "The Exchange Offer-Guaranteed Delivery Procedures" section of the
Prospectus, together with any required signature guarantee and any other
documents required by the Letter of Transmittal, will be received by the
Exchange Agent at the address set forth above, no later, than three New York
Stock Exchange trading days after the Expiration Date.
____________________________________ ____________________________________
Name of Firm
Authorized Signature
____________________________________ ____________________________________
Address
Title
____________________________________ Name:_______________________________
Zip Code
(Please Type or Print)
Area Code and Tel. No.______________ Dated:______________________________
NOTE: DO NOT SEND CERTIFICATE FOR EXISTING NOTES WITH THIS FORM.
CERTIFICATES FOR EXISTING NOTES SHOULD BE SENT ONLY WITH A COPY OF YOUR
PREVIOUSLY EXECUTED LETTER OF TRANSMITTAL.
3
<PAGE>
INSTRUCTIONS FOR NOTICE OF GUARANTEED DELIVERY
1. Delivery of this Notice of Guaranteed Delivery. A properly completed and
duly executed copy of this Notice of Guaranteed Delivery and any other
documents required by this Notice of Guaranteed Delivery must be received by
the Exchange Agent at its address set forth herein prior to 5:00 p.m., New
York City time, on the Expiration Date. The method of delivery of this Notice
of Guaranteed Delivery and any other required documents to the Exchange Agent
is at the election and risk of the Holder and the delivery will be deemed made
only when actually received by the Exchange Agent. If delivery is by mail,
registered or certified mail properly insured, with return receipt requested,
is recommended. In all cases sufficient time should be allowed to assure
timely delivery. For a description of the guaranteed delivery procedure, see
Instruction 1 of the Letter of Transmittal.
2. Signatures of this Notice of Guaranteed Delivery. If this Notice of
Guaranteed Delivery is signed by the registered Holder(s) of the Existing
Notes referred to herein, the signature must correspond with the name(s)
written on the face of the Existing Notes without alteration, enlargement, or
any change whatsoever. If this Notice of Guaranteed Delivery is signed by a
participant of the book-entry transfer facility whose name appears on a
security position listing as the owner of Existing Notes, the signature must
correspond with the name shown on the security position listing as the owner
of the Existing Notes.
If this Notice of Guaranteed Delivery is signed by a person other than the
registered Holder(s) of any Existing Notes listed or a participant of the
book-entry transfer facility, this Notice of Guaranteed Delivery must be
accompanied by appropriate bond powers, signed as the name of the registered
Holder(s) appears on the Existing Notes or signed as the name of the
participant shown on the book-entry transfer facility's security position
listing.
If this Notice of Guaranteed Delivery is signed by a trustee, executor,
administrator, guardian, attorney-in-fact, officer of a corporation, or other
person acting in a fiduciary or representative capacity, such person should so
indicate when signing.
3. Requests for Assistance or Additional Copies. Questions and requests for
assistance and requests for additional copies of the Prospectus may be
directed to the Exchange Agent at the address specified in the Prospectus.
Holders may also contact their broker, dealer, commercial bank, trust company,
or other nominee for assistance concerning the Exchange Offer.
4
<PAGE>
EXHIBIT 99.3
October __, 1998
EXCHANGE AGENT AGREEMENT
------------------------
State Street Bank and Trust Company
Corporate Trust Administration
225 Asylum Street, 23rd Floor
Hartford, Connecticut 06103
Ladies and Gentlemen:
Jafra Cosmetics International, Inc. and Jafra Cosmetics International,
S.A. de C.V. (collectively, the "Company") propose to make an offer (the
"Exchange Offer") to exchange the Issuers' 11 3/4% Senior Subordinated Notes Due
2008 (the "Existing Notes") for the Issuers' Senior Subordinated Notes Due 2008
(the "New Notes"), which have been registered under the Securities Act of 1933,
as amended. The terms and conditions of the Exchange Offer as currently
contemplated are set forth in a prospectus (and any amendments thereto) filed
with the Securities and Exchange Commission on September 4, 1998 as part of a
Registration Statement on Form S-4 (as so amended, the "Prospectus"), proposed
to be distributed to all record holders of the Existing Notes. The Existing
Notes and the New Notes are collectively referred to herein as the "Notes." Any
capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to such terms in the Prospectus.
The Company hereby appoints State Street Bank and Trust Company to act as
exchange agent (the "Exchange Agent") in connection with the Exchange Offer as
of September 4, 1998. References hereinafter to "you" shall refer to State
Street Bank and Trust Company.
The Exchange Offer is expected to be commenced by the Company on or about
October __, 1998. The Letter of Transmittal accompanying the Prospectus (or in
the case of book entry securities, the ATOP system) is to be used by the Holders
of the Existing Notes to accept the Exchange Offer, and contains instructions
with respect to the delivery of certificates for Existing Notes tendered.
The Exchange Offer shall expire at 5:00 P.M., New York City time, on
November __, 1998, or on such later date or time to which the Company may extend
the Exchange Offer (the "Expiration Date"). Subject to the terms and conditions
set forth in the Prospectus, the Company expressly reserves the right to extend
the Exchange Offer from time to time and may extend the Exchange Offer by giving
oral (confirmed in writing) or written notice to you
<PAGE>
before 9:00 A.M., New York City time, on the business day following the
previously scheduled Expiration Date.
The Company expressly reserves the right to amend or terminate the
Exchange Offer, and not to accept for exchange any Existing Notes not
theretofore accepted for exchange, upon the occurrence of any of the conditions
of the Exchange Offer specified in the Prospectus under the caption "The
Exchange Offer--Conditions." The Company will give oral (confirmed in writing)
or written notice of any amendment, termination or nonacceptance to you as
promptly as practicable.
In carrying out your duties as Exchange Agent, you are to act in
accordance with the following instructions:
1. You will perform such duties and only such duties as are specifically
set forth in the section of the Prospectus captioned "The Exchange Offer" or as
specifically set forth herein; provided, however, that in no way will your
-------- -------
general duty to act in good faith be discharged by the foregoing.
2. You will establish an account with respect to the Existing Notes at The
Depository Trust Company (the "Book-Entry Transfer Facility") for purposes of
the Exchange Offer within two business days after the date of the Prospectus,
and any financial institution that is a participant in the Book-Entry Transfer
Facility's systems may make book-entry delivery of the Existing Notes by causing
the Book-Entry Transfer Facility to transfer such Existing Notes into your
account in accordance with the Book-Entry Transfer Facility's procedure for such
transfer.
3. You are to examine each of the Letters of Transmittal and certificates
for Existing Notes (or confirmation of book-entry transfer into your account at
the Book-Entry Transfer Facility) and any other documents delivered or mailed to
you by or for holders of the Existing Notes to ascertain whether: (i) the
Letters of Transmittal and any such other documents are duly executed and
properly completed in accordance with instructions set forth therein and (ii)
the Existing Notes have otherwise been properly tendered. In each case where
the Letter of Transmittal or any other document has been improperly completed or
executed or any of the certificates for Existing Notes are not in proper form
for transfer or some other irregularity in connection with the acceptance of the
Exchange Offer exists, you will endeavor to inform the presenters of the need
for fulfillment of all requirements and to take any other action as may be
necessary or advisable to cause such irregularity to be corrected.
4. With the approval of the President, Chief Financial Officer or any Vice
President of the Company (such approval, if given orally, to be confirmed in
writing) or any other party
2
<PAGE>
designated by such an officer in writing, you are authorized to waive any
irregularities in connection with any tender of Existing Notes pursuant to the
Exchange Offer.
5. Tenders of Existing Notes may be made only as set forth in the Letter
of Transmittal and in the section of the Prospectus captioned "The Exchange
Offer--Procedures for Tendering," and Existing Notes shall be considered
properly tendered to you only when tendered in accordance with the procedures
set forth therein.
Notwithstanding the provisions of this paragraph 5, Existing Notes which
the President, Chief Financial Officer or any Vice President of the Company
shall approve as having been properly tendered pursuant to paragraph 4 above
shall be considered to be properly tendered (such approval, if given orally,
shall be confirmed in writing).
6. You shall advise the Company with respect to any Existing Notes
received subsequent to the Expiration Date and accept its instructions with
respect to disposition of such Existing Notes (such advice, if given orally,
shall be confirmed in writing).
7. You shall accept tenders:
(a) in cases where the Existing Notes are registered in two or more
names, only if signed by all named holders;
(b) in cases where the signing person (as indicated on the Letter of
Transmittal) is acting in a fiduciary or a representative capacity, only when
proper evidence of his or her authority so to act is submitted; and
(c) from persons other than the registered holder of Existing Notes
provided that customary transfer requirements, including the payment by such
persons of any applicable transfer taxes, are fulfilled.
8. Upon satisfaction or waiver of all of the conditions to the Exchange
Offer, the Company will notify you (such notice if given orally, to be confirmed
in writing) of its acceptance, promptly after the Expiration Date, of all
Existing Notes properly tendered and you, on behalf of the Company, will
exchange such Existing Notes for New Notes and cause such Existing Notes to be
cancelled. Delivery of New Notes will be made on behalf of the Company by you
at the rate of $1,000 principal amount of New Notes for each $1,000 principal
amount of the corresponding series of Existing Notes tendered promptly after
notice (such notice if given orally, to be confirmed in writing) of acceptance
of said Existing Notes by the Company; provided, however, that in all cases,
-------- -------
Existing Notes tendered pursuant to the Exchange Offer will be exchanged only
after timely receipt by you of certificates for such Existing Notes (or
confirmation of book-entry transfer into your account at the Book-Entry
3
<PAGE>
Transfer Facility), a properly completed and duly executed Letter of Transmittal
(or facsimile thereof) with any required signature guarantees and any other
required documents. You shall issue New Notes only in denominations of $1,000 or
any integral multiple thereof.
9. Tenders pursuant to the Exchange Offer are irrevocable, except that,
subject to the terms and upon the conditions set forth in the Prospectus and the
Letter of Transmittal, Existing Notes tendered pursuant to the Exchange Offer
may be withdrawn at any time prior to the Expiration Date.
10. The Company shall not be required to exchange any Existing Notes
tendered if any of the conditions set forth in the Exchange Offer are not met.
Notice of any decision by the Company not to exchange any Existing Notes
tendered shall be given (and confirmed in writing) by the Company to you.
11. If, pursuant to the Exchange Offer, the Company does not accept for
exchange all or part of the Existing Notes tendered because of an invalid
tender, the occurrence of certain other events set forth in the Prospectus under
the caption "The Exchange Offer-- Conditions" or otherwise, you shall as soon as
practicable after the expiration or termination of the Exchange Offer return
those certificates for unaccepted Existing Notes (or effect appropriate book-
entry transfer), together with any related required documents and the Letters of
Transmittal relating thereto that are in your possession, to the persons who
deposited them.
12. All certificates for reissued Existing Notes, unaccepted Existing
Notes or for New Notes shall be forwarded by (a) first-class certified mail,
return receipt requested under a blanket surety bond protecting you and the
Company from loss or liability arising out of the non-receipt or non-delivery of
such certificates or (b) registered mail insured separately for the replacement
value of each of such certificates.
13. You are not authorized to pay or offer to pay any concessions,
commissions or solicitation fees to any broker, dealer, bank or other persons or
to engage or utilize any person to solicit tenders.
14. As Exchange Agent hereunder you:
(a) shall have no duties or obligations other than those specifically
set forth in the Prospectus or set forth herein or as may be subsequently agreed
to in writing by you and the Company;
(b) will be regarded as making no representations and having no
responsibilities as to the validity, sufficiency, value or genuineness of any of
the certificates or the Existing Notes represented thereby deposited with you
pursuant to the Exchange Offer, and will not be
4
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required to and will make no representation as to the validity, value or
genuineness of the Exchange Offer;
(c) shall not be obligated to take any legal action hereunder which
might in your reasonable judgment involve any expense or liability, unless you
shall have been furnished with reasonable indemnity;
(d) may reasonably rely on and shall be protected in acting in
reliance upon any certificate, instrument, opinion, notice, letter, telegram or
other document or security delivered to you and reasonably believed by you to be
genuine and to have been signed by the proper party or parties;
(e) may reasonably act upon any tender, statement, request, comment,
agreement or other instrument whatsoever not only as to its due execution and
validity and effectiveness of its provisions, but also as to the truth and
accuracy of any information contained therein, which you shall in good faith
believe to be genuine or to have been signed or represented by a proper person
or persons;
(f) may rely on and shall be protected in acting upon written or oral
instructions from any officer of the Company;
(g) may consult with your counsel with respect to any questions
relating to your duties and responsibilities and the advice or opinion of such
counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted to be taken by you hereunder in good faith
and in accordance with the advice or opinion of such counsel; and
(h) shall not advise any person tendering Existing Notes pursuant to
the Exchange Offer as to the wisdom of making such tender or as to the market
value or decline or appreciation in market value of any Existing Notes.
15. You shall take such action as may from time to time be requested by
the Company or its counsel (and such other action as you may reasonably deem
appropriate) to furnish copies of the Prospectus, Letter of Transmittal and the
Notice of Guaranteed Delivery (as defined in the Prospectus) or such other forms
as may be approved from time to time by the Company, to all persons requesting
such documents and to accept and comply with telephone requests for information
relating to the Exchange Offer, provided that such information shall relate only
to the procedures for accepting (or withdrawing from) the Exchange Offer. The
Company will furnish you with copies of such documents at your request. All
other requests for information relating to the Exchange Offer shall be directed
to the Company, Attention: Ralph S. Mason, III, Esq., General Counsel of Jafra
Cosmetics International, Inc.
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16. You shall advise by facsimile transmission or telephone, and
promptly thereafter confirm in writing to Ralph S. Mason, III, Esq., General
Counsel of Jafra Cosmetics International, Inc. and such other person or persons
as it may request, daily (and more frequently during the week immediately
preceding the Expiration Date and if otherwise requested) up to and including
the Expiration Date, as to the number of Existing Notes which have been tendered
pursuant to the Exchange Offer and the items received by you pursuant to this
Agreement, separately reporting and giving cumulative totals as to items
properly received and items improperly received. In addition, you will also
inform, and cooperate in making available to, the Company or any such other
authorized person or persons upon oral request made from time to time prior to
the Expiration Date of such other information as it or he or she reasonably
requests. Such cooperation shall include, without limitation, the granting by
you to the Company and such person as the Company may request of access to those
persons on your staff who are responsible for receiving tenders, in order to
ensure that immediately prior to the Expiration Date, the Company shall have
received information in sufficient detail to enable it to decide whether to
extend the Exchange Offer. You shall prepare a final list of all persons whose
tenders were accepted, the aggregate principal amount of Existing Notes
tendered, the aggregate principal amount of Existing Notes accepted and deliver
said list to the Company.
17. Letters of Transmittal and Notices of Guaranteed Delivery shall be
stamped by you as to the date and the time of receipt thereof and shall be
preserved by you for a period of time at least equal to the period of time you
preserve other records pertaining to the transfer of securities. You shall
dispose of unused Letters of Transmittal and other surplus materials by
returning them to the Company.
18. You hereby expressly waive any lien, encumbrance or right of setoff
whatsoever that you may have with respect to funds deposited with you for the
payment of transfer taxes by reasons of amounts, if any, borrowed by the
Company, or any of its subsidiaries or affiliates pursuant to any loan or credit
agreement with you or for compensation owed to you hereunder.
19. For services rendered as Exchange Agent hereunder, you shall be
entitled to such compensation as set forth on Schedule I attached hereto.
20. You hereby acknowledge receipt of the Prospectus and the Letter of
Transmittal and further acknowledge that you have examined each of them. Any
inconsistency between this Agreement, on the one hand, and the Prospectus and
the Letter of Transmittal (as they may be amended from time to time), on the
other hand, shall be resolved in favor of the latter two documents, except with
respect to the duties, liabilities and indemnification of you as Exchange Agent,
which shall be controlled by this Agreement.
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21. The Company covenants and agrees to indemnify and hold you harmless
in your capacity as Exchange Agent hereunder against any loss, liability, cost
or expense, including reasonable attorneys' fees and expenses, arising out of or
in connection with any act, omission, delay or refusal made by you in reliance
upon any signature, endorsement, assignment, certificate, order, request,
notice, instruction or other instrument or document reasonably believed by you
to be valid, genuine and sufficient and in accepting any tender or effecting any
transfer of Existing Notes reasonably believed by you in good faith to be
authorized, and in delaying or refusing in good faith to accept any tenders or
effect any transfer of Existing Notes; provided, however, that the Company shall
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not be liable for indemnification or otherwise for any loss, liability, cost or
expense to the extent arising out of your gross negligence or willful
misconduct. In no case shall the Company be liable under this indemnity with
respect to any claim against you unless the Company shall be notified by you, by
letter or cable or by facsimile confirmed by letter, of the written assertion of
a claim against you or of any other action commenced against you, promptly, but
in any event within enough time to file an answer to such claim, after you shall
have received any such written assertion or notice of commencement of action.
Failure to so notify the Company shall not relieve the Company of any liability
which it may have otherwise than on account of this Agreement except such
liability which is a result of your failure to notify promptly. The Company
shall be entitled to participate at its own expense in the defense of any such
claim or other action, and, if the Company so elects, the Company shall assume
the defense of any suit brought to enforce any such claim. In the event that
the Company shall assume the defense of any such suit, the Company shall not be
liable for the fees and expenses of any additional counsel retained by you,
which fees and expenses are incurred thereafter, so long as the Company shall
retain counsel reasonably satisfactory to you to defend such suit except for any
reasonable fees and expenses of your counsel incurred in representing you that
are necessary and appropriate as a result of the need to have separate
representation because the Company's counsel has reasonably determined a
conflict of interest exists between the Company and you.
22. You shall arrange to comply with all requirements under the tax laws
of the United States, including those relating to missing Tax Identification
Numbers, and shall file any appropriate reports with the Internal Revenue
Service. The Company understands that you are required to deduct 31% on
payments to holders who have not supplied their correct Taxpayer Identification
Number or required certification. Such funds will be turned over to the
Internal Revenue Service in accordance with applicable regulations.
23. You shall deliver or cause to be delivered, in a timely manner to
each governmental authority to which any transfer taxes are payable in respect
of the exchange of Existing Notes, your check in the amount of all transfer
taxes so payable, and the Company shall reimburse you for the amount of any and
all transfer taxes payable in respect of the exchange of Existing Notes;
provided, however, that you shall reimburse the Company for
- -------- -------
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amounts refunded to you in respect of your payment of any such transfer taxes,
at such time as such refund is received by you.
24. This Agreement and your appointment as Exchange Agent hereunder shall
be construed and enforced in accordance with the laws of the State of New York
applicable to agreements made and to be performed entirely within such state,
and without regard to conflicts of law principles, and shall inure to the
benefit of, and the obligations created hereby shall be binding upon, the
successors and assigns of each of the parties hereto.
25. This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.
26. In case any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
27. This Agreement shall not be deemed or construed to be modified,
amended, rescinded, cancelled or waived, in whole or in part, except by a
written instrument signed by a duly authorized representative of the party to be
charged. This Agreement may not be modified orally.
28. Unless otherwise provided herein, all notices, requests and other
communications to any party hereunder shall be in writing (including facsimile
or similar writing) and shall be given to such party, addressed to it, at its
address or telecopy number set forth below:
If to the Company:
CDRJ Investments (Lux) S.A.
Jafra Cosmetics International, S.A. de C.V.
c/o Jafra Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, CA 91361
Telephone: (805) 449-3000
Facsimile: (805) 449-3256
Attention: Ralph S. Mason, III, Esq., General Counsel
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With a copy to:
Paul S. Bird, Esq.
Debevoise & Plimpton
875 Third Avenue
New York, New York 10022
Telephone: (212) 909-6000
Facsimile: (212) 909-6836
If to the Exchange Agent:
State Street Bank and Trust Company
225 Asylum Street, 23rd Floor
Hartford, Connecticut 06103
Facsimile: (860) 244-1896
Attention: Corporate Trust Administration
29. Unless terminated earlier by the parties hereto, this Agreement
shall terminate 90 days following the Expiration Date. Notwithstanding the
foregoing, Paragraphs 19, 21, and 23 shall survive the termination of this
Agreement. Upon any termination of this Agreement, you shall promptly deliver
to the Company any certificates for Notes, funds or property then held by you as
Exchange Agent under this Agreement.
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30. This Agreement shall be binding and effective as of the date hereof.
Please acknowledge receipt of this Agreement and confirm the arrangements herein
provided by signing and returning the enclosed copy.
JAFRA COSMETICS INTERNATIONAL, INC.
By: ____________________________________
Name:
Title:
JAFRA COSMETICS INTERNATIONAL, S.A. de C.V.
By: ____________________________________
Name:
Title:
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Accepted as of the date first above written:
STATE STREET BANK AND TRUST COMPANY, as Exchange Agent
By:_____________________________________________
Name:
Title:
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SCHEDULE I
FEES
Exchange Agent Fee.....................................................$5,000.00
All out-of-pockets expenses will be billed as incurred.
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EXHIBIT 99.4
INSTRUCTION TO REGISTERED HOLDER AND/OR
BOOK-ENTRY TRANSFER FACILITY PARTICIPANT FROM OWNER
OF
JAFRA COSMETICS INTERNATIONAL, INC. AND
JAFRA COSMETICS INTERNATIONAL, S.A. DE C.V.
11 3/4% SENIOR SUBORDINATED NOTES DUE 2008
To Registered Holder and/or Participant of Book-Entry Transfer Facility:
The undersigned hereby acknowledges receipt of the Prospectus dated October
, 1998 (the "Prospectus") of Jafra Cosmetics International, Inc., a Delaware
corporation, and Jafra Cosmetics International S.A. de C.V., a sociedad
ano\nima de capital variable organized under the laws of the United Mexican
States (collectively, the "Issuers") and the accompanying Letter of
Transmittal (the "Letter of Transmittal"), that together constitute the
Issuers' offer to exchange up to $100,000,000 aggregate principal amount of
its 11 3/4% Senior Subordinated Notes Due 2008 (the "New Notes"), which have
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), for a like principal amount of its outstanding 11 3/4% Senior
Subordinated Notes Due 2008 (the "Existing Notes"). Capitalized terms used but
not defined herein have the meanings ascribed to them in the Prospectus.
This will instruct you, the registered Holder and/or book-entry transfer
facility participant, as to the action to be taken by you relating to the
Exchange Offer with respect to the Existing Notes held by you for the account
of the undersigned.
The aggregate face amount of the Existing Notes held by you for the account
of the undersigned is (fill in amount):
$ of the 11 3/4% Senior Subordinated Notes Due 2008.
With respect to the Exchange Offer, the undersigned hereby instructs you
(check appropriate box):
[_]To TENDER the following Existing Notes held by you for the account of
the undersigned (insert principal amount of Existing Notes to be
tendered, if any):
$ of the 11 3/4% Senior Subordinated Notes Due 2008.
[_]NOT to TENDER any Existing Notes held by you for the account of the
undersigned.
If the undersigned instructs you to tender the Existing Notes held by you
for the account of the undersigned, it is understood that you are authorized
(a) to make, on behalf of the undersigned (and the undersigned, by its
signature below, hereby makes to you), the representation and warranties
contained in the Letter of Transmittal that are to be made with respect to the
undersigned as a beneficial owner, including but not limited to the
representations that (i) the undersigned's principal residence is the state of
(fill in state) , (ii) the undersigned is neither an "affiliate" of the
Issuers within the meaning of Rule 405 under the Securities Act, nor a broker-
dealer tendering Existing Notes acquired directly from the Issuers for its own
account, (iii) the undersigned is acquiring the New Notes in the ordinary
course of business of the undersigned, (iv) the undersigned is not
participating, does not intend to participate, and has no arrangement or
understanding with any person to participate, in a distribution of the New
Notes, and (v) the undersigned acknowledges that any person participating in
the Exchange Offer for the purpose of distributing the New Notes must comply
with the registration and prospectus delivery requirements of the Securities
Act in connection with a secondary resale transaction of the New Notes
acquired by such person and cannot rely on the interpretations of the staff of
the Securities and Exchange Commission set forth in no-action letters issued
to third parties; (b) to agree, on behalf of the undersigned, as set forth in
the Letter of Transmittal; and (c) to take such other actions as necessary
under the Prospectus or the Letter of Transmittal to effect the valid tender
of such Existing Notes.
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SIGN HERE
Name of beneficial owner(s): ______________________________________
Signature(s): Name(s) (please print): _____________________________
Address: __________________________________________________________
____________________________________________________________
Telephone Number: _________________________________________________
Taxpayer identification or Social Security Number: ________________
Date: _____________________________________________________________
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