$375 million Multicurrency Revolving Credit Facility for Scottish Power plc



 EXHIBIT 4.12 
  
 CONFORMED COPY 
  
  
 AGREEMENT 
  
  
 DATED 3RD JUNE, 2004 
  
 US$375,000,000 
  
 MULTICURRENCY REVOLVING CREDIT FACILITY 
  
 For 
  
 SCOTTISH POWER PLC 
  
 arranged by 
  
 THE BANK OF TOKYO-MITSUBISHI, LTD. 
  
 BARCLAYS CAPITAL 
  
 COMMERZBANK AKTIENGESELLSCHAFT 
 (acting through COMMERZBANK SECURITIES) 
  
 HSBC BANK PLC 
  
 J.P. MORGAN PLC 
  
 and 
  
 THE ROYAL BANK OF SCOTLAND PLC 
  
  
 ALLEN & OVERY 
 ALLEN & OVERY LLP 
 LONDON








 CONTENTS 
  

					
	Clause

	  	 	  	Page


	 	  	 	  	 
	1.	  	Interpretation	  	2
	2.	  	The Facility	  	16
	3.	  	Purpose	  	17
	4.	  	Conditions Precedent	  	17
	5.	  	Utilisation - Loans	  	17
	6.	  	Repayment	  	18
	7.	  	Prepayment and Cancellation	  	19
	8.	  	Interest	  	21
	9.	  	Optional Currencies	  	22
	10.	  	Payments	  	23
	11.	  	Taxes	  	25
	12.	  	Market Disruption	  	27
	13.	  	Increased Costs	  	28
	14.	  	Illegality and Mitigation	  	29
	15.	  	Representations and Warranties	  	30
	16.	  	Undertakings	  	34
	17.	  	Default	  	41
	18.	  	The Agent and the Mandated Lead Arrangers	  	45
	19.	  	Fees	  	49
	20.	  	Expenses	  	50
	21.	  	Stamp Duties	  	50
	22.	  	Indemnities	  	50
	23.	  	Evidence And Calculations	  	51
	24.	  	Amendments and Waivers	  	52
	25.	  	Changes to the Parties	  	52
	26.	  	Disclosure of Information	  	55
	27.	  	Set-Off	  	55
	28.	  	Pro Rata Sharing	  	55
	29.	  	Severability	  	56
	30.	  	Counterparts	  	56
	31.	  	Notices	  	57
	32.	  	Governing Law	  	57
	33.	  	Jurisdiction	  	57
	34.	  	Service of Process	  	58
			
	Schedule	  	 	  	 
			
	1.	  	Original Parties	  	59
	2.	  	Conditions Precedent Documents	  	60
	3.	  	Calculation of the Mandatory Cost	  	62
	4.	  	Form of Request	  	64
	5.	  	Form of Novation Certificate	  	65
	6.	  	Form of Legal Opinion of Allen & Overy LLP	  	66
	7.	  	Form of Legal Opinion of Maclay Murray & Spens	  	68
	8.	  	Existing Borrowings	  	73
	9.	  	Form of Confidentiality Undertaking	  	75
			
	Signatory	  	 	  	79

  

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 THIS AGREEMENT is dated 3rd June, 2004 BETWEEN: 
  

	(1)	SCOTTISH POWER PLC (Registered No. SC193794) (the Company); 

  

	(2)	THE BANK OF TOKYO-MITSUBISHI, LTD., BARCLAYS CAPITAL, COMMERZBANK AKTIENGESELLSCHAFT (acting through Commerzbank Securities), HSBC BANK PLC, J.P. MORGAN PLC and THE ROYAL
BANK OF SCOTLAND PLC as mandated lead arrangers (in this capacity the Mandated Lead Arrangers); 

  

	(3)	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Parties) as banks (the Original Banks); and 

  

	(4)	THE ROYAL BANK OF SCOTLAND PLC as agent (in this capacity the Agent). 

  
 IT IS AGREED as follows: 
  

	1.	INTERPRETATION  

  

	1.1	Definitions 

  
 In this Agreement: 
  
 Affiliate means a Subsidiary or a Holding Company (as defined in Section 736 of the Companies Act 1985) of a person and any other Subsidiary of
that Holding Company. 
  
 Agent’s Spot Rate of Exchange
means the Agent’s spot rate of exchange for the purchase of the relevant Optional Currency in the London foreign exchange market with US Dollars at or about 11.00 a.m. on a particular day. 
  
 Availability Period means the period from and including the date of
this Agreement to and including the Final Maturity Date. 
  
 Balance Sheet means, at any time, the latest published audited consolidated balance sheet of the Group on an historic cost basis. 
  
 Bank means: 
  

	 	(a)	any Original Bank; and 

  

	 	(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 25 (Changes to the Parties). 

  
 Borrowings means any indebtedness in respect of: 
  

	 	(a)	moneys borrowed and debit balances at banks and other financial institutions; 

  


	 	(b)	any debt security including any bond, note or loan stock; 

  

	 	(c)	any acceptance under any acceptance credit facility opened by a bank or other financial institution; 

  

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	 	(d)	the sale or discounting of receivables (except to the extent that such sale or discounting is on a non-recourse basis); 

  

	 	(e)	any lease which the Company accounts for as a finance lease as such term is described in the Statement of Standard Accounting Practices No. 21 (or any successor statement or
financial reporting standard); 

  

	 	(f)	any accrued fixed or minimum premium payable on the repayment or redemption of any instrument referred to in paragraph (b) above; 

  

	 	(g)	for the purposes of Clause 17.5 (Cross-default) only, any derivative transaction including interest rate swaps, currency swaps (including spot and forward exchange contracts), caps,
collars, floors and similar obligations (and, when calculating the value of any such derivative transaction, only the marked to market value shall be taken into account); 

  

	 	(h)	the acquisition cost of any asset to the extent payable before or after the time of acquisition or possession by the party liable where the advance or deferred payment is arranged
primarily as a method of raising finance or financing the acquisition of that asset; 

  

	 	(i)	any other transaction which has the commercial effect of a borrowing, including for the avoidance of doubt, any proceeds received by any member of the Group in connection with a
securitisation or transaction of a similar effect in respect of the assets of that member of the Group; and 

  

	 	(j)	any guarantee, indemnity and/or other form of assurance against financial loss by any member of the Group in respect of any indebtedness of any person of a type referred to in
paragraphs (a) to (i) above (in the case of paragraph (g) above, for the purposes of Clause 17.5 (Cross-default) only). 

  
 Any amount outstanding in a currency other than Sterling is to be taken into account at its Sterling equivalent calculated on the basis of the
Agent’s spot rate of exchange at 11.00 a.m. on the day the relevant amount falls to be calculated. However, indebtedness owing by one member of the Group to another member of the Group shall not be taken into account as Borrowings and, for the
purposes of calculating the amount of Borrowings at any time: 
  

	 	(i)	deep discount borrowings will be valued at the amount attributed to them in the then latest Balance Sheet; and 

  

	 	(ii)	no item of indebtedness will be double counted by the inclusion of both the primary indebtedness and indebtedness arising under a guarantee, indemnity and/or other form of assurance
with respect to that primary indebtedness. 

  
 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for business in: 
  

	 	(a)	London; and 

  

	 	(b)	Glasgow; and 

  

	 	(c)	New York; and 

  

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	 	(d)	in relation to a transaction involving an Optional Currency (other than euros) the principal financial centre of the country of that Optional Currency; and 


 

	 	(e)	in relation to a transaction involving euros, a TARGET Day. 

  
 Commitment means: 
  

	 	(a)	for an Original Bank, the amount set opposite its name in Schedule 1 under the heading “Commitments” and the amount of any other Commitment it acquires under Clause 25
(Changes to the Parties); and 

  

	 	(b)	for any other Bank the amount of any Commitment it acquires under Clause 25 (Changes to the Parties), 

  
 to the extent not cancelled, transferred or reduced under this Agreement. 
  
 Consolidated Dividends means, in respect of any period, the aggregate
of any dividend or other distribution declared, recommended or made by the Company during that period. 
  
 Consolidated EBITDA means in respect of any financial year of the Group, the consolidated profits of the Group before: 
  

	 	(a)	Net Interest Payable; 

  

	 	(b)	tax; 

  

	 	(c)	depreciation; 

  

	 	(d)	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, as determined from the financial statements of the Group and compliance
certificates delivered under, respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 Dangerous Substance means any radioactive emissions and any natural or artificial substance (whether in solid or liquid form or in the form of a
gas or vapour and whether alone or in combination with any other substance) capable (in each case) of causing harm to man or any other living organism or damaging the environment or public health or welfare, including (without limitation) any
controlled, special, hazardous, toxic, radioactive or dangerous waste. 
  
 Default means an Event of Default or an event which, with the giving of notice, lapse of time, or fulfilment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default. 

 
 Earnings means, in respect of any period, the consolidated profits
of the Group after tax, adjusted by: 
  

	 	(a)	adding back any amount attributable to amortisation of goodwill; and 

  

	 	(b)	taking no account of any exceptional item, 

  

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 as determined from the financial statements of the Group and compliance certificates delivered under,
respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 EC means the European Community and its successors. 
  
 EBITDA means in respect of any financial year of a company, the consolidated profits of that company before: 
  

	 	(a)	Net Interest Payable attributable to it; 

  

	 	(b)	tax; 

  

	 	(c)	depreciation; 

  

	 	(d)	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, in each case which are attributable to that company. 
  
 EIB means the European Investment Bank. 
  
 EIB Facilities means any credit facilities made available by the
European Investment Bank to a UK Subsidiary after the date of this Agreement. 
  
 Electricity Act means the Electricity Act 1989, as amended by the Utilities Act 2000 and, unless the context so requires, all subordinate legislation made pursuant thereto. 
  
 Energy Laws means the Electricity Act and all other laws, regulations
or requirements of any relevant authority (in so far as such regulations or requirements have the force of law) relating to the generation, transmission, distribution, supply or trading of electricity or any other sources of energy in each
jurisdiction in which any member of the Group carries on business at any time. 
  
 Environmental Claim means any claim by any person in connection with: 
  

	 	(a)	a breach, or alleged breach, of Environmental Law; 

  

	 	(b)	any accident, fire, explosion or other event of any type involving an emission or substance which is capable of causing harm to any living organism or the environment; or


  

	 	(c)	any other environmental contamination. 

  
 Environmental Law means all laws, regulations, codes of practice, circulars, guidance notices and the like (whether in the United Kingdom or
elsewhere) whether or not having the force of law but if not having the force of law compliance with which is customary in the industry in which any member of the Group operates concerning the protection of human health or the environment or the
conditions of the work place or the generation, transportation, storage, treatment or disposal of Dangerous Substances. 
  

 5 








 Environmental Licence means any permit, licence, authorisation, consent or other approval required
by any Environmental Law. 
  
 EURIBOR means for a Term of
any Loan or overdue amount in euro: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for that Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates as supplied to the Agent at its
request quoted by the Reference Banks to leading banks in the European interbank market, 

  
 as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for the offering of deposits in euro for a period comparable to that Term. 
  
 euro means the single currency of the Participating Member States.

  
 Event of Default means an event specified as such in
Clause 17.1 (Events of Default). 
  
 Existing Facility
Agreement means the US$1,000,000,000 multicurrency credit facility dated 12th June, 2003 between, among others, the Company and the Agent. 
  
 Existing Facility A means Facility A as defined in the Existing Facility Agreement. 
  
 Existing Facility A Loan means the principal amount of a borrowing by the Company under Facility A or the principal
amount outstanding of that borrowing. 
  
 Existing Facility B
means Facility B as defined in the Existing Facility Agreement. 
  
 Existing Facility B Loan means the principal amount of a borrowing by the Company under Existing Facility B or the principal amount outstanding of that borrowing. 
  
 Existing Facility B Total Commitments means the Total Facility B Commitments as defined in the Existing Facility
Agreement. 
  
 Facility means the revolving credit
facility referred to in Clause 2 (The Facility). 
  
 Facility
Office means, subject to Clause 25.6 (Change of Facility Office)), the office(s) notified by a Bank to the Agent: 
  

	 	(a)	on or before the date it becomes a Bank; or 

  

	 	(b)	by not less than five Business Days’ notice, 

  
 as the office(s) through which it will perform all or any of its obligations under this Agreement. 
  
 Fee Letter means: 
  

	 	(a)	the letter dated the date of this Agreement between the Mandated Lead Arrangers and the Company setting out the amount of various fees referred to in Clause 19.1 (Front-end fees);


  

	 	(b)	the letter dated the date of this Agreement between the Agent and the Company setting out the amount of various fees referred to in Clause 19.4 (Agent’s fee).


  

 6 








 Final Maturity Date means 12th June, 2008. 
  
 Finance Document means this Agreement, a Fee Letter, a Novation Certificate or any other document designated as such by the Agent and the Company.

  
 Finance Party means a Mandated Lead Arranger, a Bank
or the Agent. 
  
 Group means at any time the Company and
its Subsidiaries at that time. 
  
 Hedging Liabilities
means indebtedness arising in respect of obligations of the type referred to in paragraph (g) of the definition of “Borrowings” in this Clause 1.1. 
  
 IBOR means LIBOR or EURIBOR. 
  
 Interest Payable means, in respect of any financial period, all interest, discount and acceptance commission and all
other continuing, regular or periodic costs, charges and expenses in the nature of interest (whether paid, payable or capitalised) or treated for accounting purposes as interest, incurred by the Group in effecting, servicing or maintaining Total
Consolidated Borrowings during that period. 
  
 Interest
Receivable means, in respect of any financial period, interest and amounts in the nature of interest received during that period by the Group from persons outside the Group. 
  
 Investments means: 
  

	 	(a)	cash on current account or cash on deposit with, or certificates of deposit issued by, or bills of exchange accepted by, any bank incorporated in an OECD country from which proceeds
are readily remittable to the United Kingdom, and in each case, where the deposit or the maturity is for a duration of six months or less; and 

  

	 	(b)	bonds or treasury bills issued by an OECD government or agency, bonds rated single-A or above by a major rating agency and commercial paper rated A1 or P1 by a major rating agency,
in each case, where the proceeds of which are readily remittable to the United Kingdom. 

  
 LIBOR means for a Term of any Loan or overdue amount (other than in euro): 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the relevant currency or Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates, as
supplied to the Agent at its request, quoted by the Reference Banks to leading banks in the London interbank market, 

  
 as of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the currency of that Loan or overdue amount for a period comparable to that Term.

  
 Licence means each licence or other similar
authorisation granted by any relevant UK or US authority (as the case may be) to a member of the Group carrying on business in the United Kingdom or United States (as the case may be) pursuant to any Energy Law or otherwise to permit it to carry out
generation, transmission, distribution or supply of electricity or to trade electricity. 
  

 7 








 Loan means the principal amount of a borrowing by the Company under this Agreement or the
principal amount outstanding of that borrowing. 
  
 Majority
Banks means, at any time, Banks: 
  

	 	(a)	the aggregate of whose shares in the outstanding Loans and undrawn Commitments then represents 66 2/3 per cent. or more of the aggregate of all the outstanding Loans and undrawn Commitments of all the Banks; 

  

	 	(b)	if there is no Loan then outstanding, whose undrawn Commitments then aggregate 66 2/3 per cent. or more of the Total Commitments; or 

  

	 	(c)	if there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 66 2/3 per cent. or more of the Total Commitments immediately before the reduction. 

  
 Mandatory Cost means the cost of complying with certain regulatory
requirements, expressed as a percentage rate per annum and calculated by the Agent under Schedule 3 (Calculation of Mandatory cost). 
  
 Mandatory Subsidiaries means: 
  

	 	(a)	SP Distribution, SP Manweb, SP Transmission, SP UK and PacifiCorp; and 

  

	 	(b)	any Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence, in whole or in part. 

  
 Margin means: 
  

	 	(a)	0.50 per cent. per annum; or 

  

	 	(b)	at any time, if different, the rate per annum determined by reference to the lower of the Company’s long term credit ratings assigned by S&P or Moody’s (or any other
rating agency approved for this purpose by the Majority Banks) last published (and not withdrawn) at that time, as follows: 

  

					
	Rating

	 	Margin (% per annum)


	S&P	 	Moody’s	 	 
	A or better	 	A2 or better	 	0.40
	A-	 	A3	 	0.45
	BBB+	 	Baa1	 	0.50
	BBB	 	Baa2	 	0.55
	BBB- or lower
(or if (1) the
Borrower
ceases to have
such rating; or
(2) an Event of
Default is
outstanding)	 	Baa3 or lower (or if
(1) the Borrower
ceases to have such
rating; or (2) an
Event of Default is
outstanding)	 	0.75

  

 8 








 Material Adverse Effect means any effect which, in the opinion of the Majority Banks, is or is
reasonably likely to be materially adverse to the ability of the Company to perform any of its payment obligations under any of the Finance Documents (taking into account resources available to it without breaching the terms of this Agreement from
other members of the Group), or to comply with any of its obligations under Clause 16.12 (Financial covenants). 
  
 Moody’s means Moody’s Investors Service, Inc. 
  

Net Interest Payable means, in respect of any financial period, Interest Payable during that period less Interest Receivable during that period.

  
 Novation Certificate means a duly completed
certificate, substantially in the form of Schedule 5 (Form of Novation Certificate). 
  
 Ofgem means the Office of Gas and Electricity Markets. 
  
 Operating Profit means the consolidated net pre-taxation profits (after adding back Net Interest Payable and amortisation (including for the avoidance of doubt, of goodwill)) of the Group for a financial year
of the Group before taking account of any exceptional or extraordinary profits (or losses), as determined from the financial statements of the Group and compliance certificates delivered under, respectively, Clause 16.2 (Financial information) and
Clause 16.6 (Compliance certificates). 
  
 Optional
Currency means Sterling, euros or any other currency (other than US Dollars) which is for the time being freely transferable and convertible into US Dollars and deposits of which are readily available in the London interbank market. 

 
 Original Dollar Amount means: 
  

	 	(a)	the principal amount of a Loan denominated in US Dollars; or 

  

	 	(b)	the principal amount of a Loan denominated in an Optional Currency translated into US Dollars on the basis of the Agent’s Spot Rate of Exchange three Business Days before its
Utilisation Date. 

  
 Original Group
Accounts means the audited consolidated accounts of the Group for the year ended 31st March, 2004. 
  
 PacifiCorp means PacifiCorp (a company incorporated in Portland, Oregon). 
  
 PacifiCorp Facility means a US$800,000,000 loan facility for PacifiCorp dated 28th May, 2004. 
  
 Participating Member State means a member state of the European Communities that adopts or has adopted the euro as its lawful currency under the
legislation of the European Community for Economic Monetary Union. 
  
 Party means a party to this Agreement. 
  
 Permitted Security Interest means: 
  

	 	(a)	any Security Interest created or outstanding with the prior written consent of the Majority Banks; 

  

 9 









	 	(b)	any lien or hypothecation arising by operation of law or contained in a contract for the sale of goods, supply of services or joint operation of assets entered into in the ordinary
course of trade of the company creating the same; 

  

	 	(c)	Security Interests not otherwise permitted under paragraphs (a) and (b) above provided that the aggregate principal amount of the indebtedness secured by Security Interests
permitted under this paragraph (c) shall not at any time exceed an amount equal to 15 per cent. of Tangible Consolidated Net Worth at that time; 

  

	 	(d)	any Security Interest created by a Project Finance Subsidiary to secure its Project Finance Borrowings; and 

  

	 	(e)	any Security Interest created by PacifiCorp and permitted under clause 5.07 (Negative Pledge) of the PacifiCorp Facility. 

  
 Principal Subsidiary means: 
  

	 	(a)	each Mandatory Subsidiary and each other Subsidiary so designated by the Company in accordance with Clause 16.5 (Principal Subsidiaries) such that the aggregate EBITDA and Net
Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of Consolidated EBITDA and the Net Assets of the Group respectively, all as calculated by reference to (in the case of any Subsidiary) each relevant Subsidiary’s most
recent annual accounts and (in the case of the Group) in the most recent annual consolidated accounts of the Group and for this purpose Net Assets in relation to any Subsidiary means its total assets (excluding goodwill) less its total
liabilities and in relation to the Group means the total assets (excluding goodwill) of the Group less its total liabilities; and 

  

	 	(b)	any other Subsidiary or Subsidiaries of the Company to whom all or substantially all of the assets or business of a Principal Subsidiary are transferred. 


 
 Principal Subsidiary Group means at any time the Principal
Subsidiaries at that time. 
  
 Project Finance Borrowings
means any Borrowing which finances, and any Hedging Liabilities incurred in the financing of the acquisition, development, ownership and/or operation of an asset: 
  

	 	(a)	which is incurred by a Project Finance Subsidiary; or 

  

	 	(b)	in respect of which the person or persons to whom such Borrowing is or may be owed by the relevant debtor (whether or not a member of the Group) has or have no recourse whatsoever
to any member of the Group (other than to a Project Finance Subsidiary) for the repayment thereof other than: 

  

	 	(i)	recourse to such debtor for amounts limited to the cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset; and/or


  

	 	(ii)	recourse to such debtor for the purpose only of enabling amounts to be claimed in respect of such Borrowing in an enforcement of any Security Interest given by such debtor over such
asset or the income, cash flow or other proceeds deriving therefrom (or given by any shareholder or the like in the debtor over its shares or like interest in the capital of the debtor) to secure such Borrowing, provided that (I) the extent of such
recourse to such debtor 

  

 10 








 is limited solely to the amount of any recoveries made on any such enforcement, and (II) such person or
persons are not entitled, by virtue of any right or claim arising out of or in connection with such Borrowing, to commence proceedings for the winding up or dissolution of the debtor or to appoint or procure the appointment of any receiver, trustee
or similar person or officer in respect of the debtor or any of its assets (save only for the assets the subject of such Security Interest); and/or 
  

	 	(iii)	recourse to such debtor generally, or directly or indirectly to a member of the Group, under any form of assurance, undertaking or support, which recourse is limited to a claim for
damages (other than liquidated damages and damages required to be calculated in a specified way) for breach of an obligation (not being a payment obligation or an obligation to procure payment by another or an indemnity in respect thereof or any
obligation to comply or to procure compliance by another with any financial ratios or other tests of financial condition) by the person against whom such recourse is available. 

  
 Project Finance Subsidiary means any Subsidiary of the Company:

  

	 	(a)	which is a company whose principal assets and business are constituted by the ownership, acquisition, development and/or operation of an asset whether directly or indirectly;


  

	 	(b)	none of whose Borrowings in respect of the financing of such ownership, acquisition, development and/or operation of an asset benefits from any recourse whatsoever to any member of
the Group (other than the Subsidiary itself or another Project Finance Subsidiary) in respect of the repayment thereof, except as expressly referred to in paragraph (b)(iii) of the definition of Project Finance Borrowings in this Clause 1.1; and


  

	 	(c)	which has been designated as such by the Company by written notice to the Agent, provided that the Company may give written notice to the Agent at any time that any Project Finance
Subsidiary is no longer a Project Finance Subsidiary, whereupon it shall cease to be a Project Finance Subsidiary. 

  
 Pro Rata Share means the proportion which a Bank’s Commitment bears to the Total Commitments at that time. 
  
 Qualifying Bank means an institution which is: 
  

	 	(a)	a bank which is within the charge to UK corporation tax in respect of, and beneficially entitled to, a payment of interest on a Loan made by a person that was a bank for the
purposes of section 349 of the Income and Corporation Taxes Act 1988 (as currently defined in section 840A of the Income and Corporation Taxes Act) at the time the Loan was made; or 

  

	 	(b)	a financial institution which is a resident (as defined in the appropriate double taxation agreement) in a country with which the UK has a double taxation agreement giving residents
of that country exemption from UK taxation on interest and which does not carry on a business in the UK through a permanent establishment with which the payment is effectively connected. 

  

 11 








 Rate Fixing Day means: 
  

	 	(a)	the first day of a Term for a Loan denominated in Sterling; or 

  

	 	(b)	the second Business Day before the first day of a Term for a Loan denominated in US Dollars or an Optional Currency (other than Sterling or euros); or 

  

	 	(c)	the second TARGET Day before the first day of a Term for a Loan denominated in euros, 

  
 unless market practice differs in the Relevant Interbank Market for a currency, in which case the Rate Fixing Day for that
currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Rate Fixing Day will
be the last of those days). 
  
 Reference Banks means,
subject to Clause 25.4 (Reference Banks), the principal London offices of Barclays Bank PLC, HSBC Bank plc, JPMorgan Chase Bank and The Royal Bank of Scotland plc. 
  
 Relevant Interbank Market means in relation to euros, the European interbank market and, in relation to any other
currency, the London interbank market. 
  
 Repayment Date
means the last day of a Term for a Loan. 
  
 Request means
a request made by the Company for a Loan, substantially in the form of Schedule 4 (Form of Request). 
  
 Reservations means the qualifications as to matters of law only contained in the legal opinions set out in Schedule 6 (Form of legal opinion of
Allen & Overy LLP) and Schedule 7 (Form of legal opinion of Maclay Murray & Spens). 
  
 Rollover Loan means one or more Loans: 
  

	 	(a)	to be made on the same day that a maturing Loan is due to be repaid; 

  

	 	(b)	the aggregate amount of which is equal to or less than the maturing Loan; 

  

	 	(c)	in the same currency as the maturing Loan; and 

  

	 	(d)	to be made for the purpose of refinancing a maturing Loan. 

  
 S&P means Standard & Poor’s Ratings Group, a division of the McGraw Hill Companies, Inc. 
  
 Screen Rate means: 
  

	 	(a)	for LIBOR, the British Bankers Association Interest Settlement Rate; and 

  

	 	(b)	for EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union, 

  
 for the relevant currency and Term displayed on the appropriate page of the Telerate screen selected by the Agent. If the
relevant page is replaced or the service ceases to be available, the Agent (after consultation with the Company and the Banks) may specify another page or service displaying the appropriate rate. 
  

 12 








 Security Interest means any mortgage, pledge, lien, charge, assignment by way of security or
subject to a proviso for redemption, assignation in security, standard security, hypothecation or security interest or any other agreement or arrangement having the effect of conferring security. 
  
 SP Distribution means SP Distribution Limited (Registered No.
SC189125). 
  
 SP Energy Management means ScottishPower
Energy Management Limited (Registered No.: SC215843). 
  
 SP
Manweb means SP Manweb plc (Registered No. 2366937). 
  
 SP Transmission means SP Transmission Limited (Registered No. SC189126). 
  
 SP UK means Scottish Power UK plc (Registered No. SC117120). 
  
 Sterling means the lawful currency for the time being of the UK. 
  
 Subsidiary means a subsidiary within the meaning of Section 736 of the Companies Act 1985, as amended by Section 144
of the Companies Act 1989. 
  
 Tangible Consolidated Net
Worth means at any time the aggregate of: 
  

	 	(a)	the amount paid up or credited as paid up on the issued share capital of the Company; and 

  

	 	(b)	the amount standing to the credit of the consolidated capital and revenue reserves of the Group; 

  
 based on the Balance Sheet but adjusted by: 
  

	 	(i)	adding any amount standing to the credit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above and to the extent the amount is not attributable to any dividend or other distribution declared, recommended or made by any member of the Group; 

  

	 	(ii)	deducting any amount standing to the debit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above; 

  

	 	(iii)	deducting any amount attributable to goodwill or any other intangible asset; 

  

	 	(iv)	deducting any amount attributable to a revaluation of assets after 31st March, 2004 or, in the case of assets of a company which becomes a member of the Group after that date, the
date on which that company becomes a member of the Group unless in either case such revaluation is based on valuations by independent valuers; 

  

	 	(v)	reflecting any variation in the amount of the issued share capital of the Company and the consolidated capital and revenue reserves of the Group after the date of the Balance Sheet;


  

 13 









	 	(vi)	reflecting any variation in the interest of the Company in any other member of the Group since the date of the Balance Sheet; 

  

	 	(vii)	excluding any amounts required to be set aside for taxation payable by the Group; 

  

	 	(viii)	excluding any amount attributable to minority interests; and 

  

	 	(ix)	eliminating inconsistencies between the accounting principles applied in connection with the Balance Sheet and those applied in connection with the Original Group Accounts,


  
 as determined from the financial statements of
the Group and compliance certificates delivered under, respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 TARGET Day means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system is open for the settlement
of payments in euro. 
  
 Term means each period determined
under this Agreement by reference to which interest on a Loan or an overdue amount is calculated. 
  
 Total Commitments means the aggregate for the time being of the Commitments, being US$375,000,000 at the date of this Agreement. 
  
 Total Consolidated Borrowings means, at any time, the aggregate
principal amount (or amounts equivalent to principal, howsoever described) comprised in the Borrowings of the Company and its Subsidiaries at that time calculated on a consolidated basis. Any amount outstanding in a currency other than Sterling (the
Relevant Currency) is to be taken into account at its Sterling equivalent calculated on the basis of the Agent’s spot rate of exchange for the purchase of the Relevant Currency in the London foreign exchange market with Sterling at or
about 11.00 a.m. on the day the relevant amount falls to be calculated. 
  
 Total Consolidated Net Borrowings means, at any time, Total Consolidated Borrowings less: 
  

	 	(a)	the aggregate principal amount of Investments beneficially owned by the Group free from Security Interests (to the extent the proceeds of the same are readily remittable to the UK)
at that time; and 

  

	 	(b)	any indebtedness of a member of the Group in respect of Borrowings which, as to prepayment, repayment or payment of principal, interest or other amounts in respect of such
Borrowings, are subordinated on terms satisfactory to the Majority Banks to any Borrowings made under this Agreement. 

  
 UK means the United Kingdom. 
  
 UK Subsidiary means a Subsidiary of the Company incorporated in the UK. 
  
 Utilisation Date means the date of the advance of a Loan. 
  
 US Dollars or US$ means the lawful currency for the time being
of the United States of America. 
  

 14 









	1.2	Construction 

  

	(a)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	assets includes present and future properties, revenues and rights of every description; 

  

	 	(ii)	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation; 

  

	 	(iii)	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental body, agency, department or
regulatory, self-regulatory or other authority or organisation; 

  

	 	(iv)	a provision of a law is a reference to that provision as amended or re-enacted; 

  

	 	(v)	a Clause, Sub-clause or a Schedule is a reference to a clause of or a schedule to this Agreement; 

  

	 	(vi)	a person includes its permitted successors and assigns; 

  

	 	(vii)	a Finance Document or another document is a reference to that Finance Document or that other document as amended, novated or supplemented in writing;


  

	 	(viii)	taxes means any present or future tax, levy, impost, duty or other charge, deduction or withholding of a similar nature (including any related penalty or interest);


  

	 	(ix)	a time of day is a reference to London time; and 

  

	 	(x)	know your customer requirements are the checks that a Finance Party requests in order to meet its obligations under applicable money laundering regulations to identify a
person who is (or is to become) its customer. 

  

	(b)	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month or the calendar month in which it is to end, except that: 

  

	 	(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is
not); 

  

	 	(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

	 	(iii)	notwithstanding sub-paragraph (i) above, a period which commences on the last Business Day of a month will end on the last Business Day in the next month or the calendar month in
which it is to end, as appropriate. 

  

	(c)	Unless the contrary intention appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement. 

  

					
	 (d)
	  	(i)	  	Terms used in the definitions of Borrowings, Consolidated Dividends, Consolidated EBITDA, Earnings, EBITDA, Interest Payable, Interest

  

 15 








 Receivable, Net Interest Payable, Operating Profit, Tangible Consolidated Net Worth, Total
Consolidated Borrowings and Total Consolidated Net Borrowings in Clause 1.1 (Definitions) are to be construed, and calculated, in accordance with the accounting principles applied in connection with the Original Group Accounts.

  

	 	(ii)	If there is a dispute as to any interpretation or computation for sub-paragraph (i) above, the interpretation or computation of the auditors for the time being of the Company will
prevail. 

  

	(e)	The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 

  

					
	 (f)
	  	(i)	    	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third
Parties) Act 1999.

  

	 	(ii)	Notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document. 

  

	(g)	References to Barclays Capital means the investment banking division of Barclays Bank PLC. 

  

	2.	THE FACILITY  

  

	2.1	The Facility 

  
 Subject to the terms of this Agreement, the Banks grant to the Company a committed multicurrency revolving credit facility under which the Banks agree to
make Loans to the Company in an aggregate amount equal to the Total Commitments. 
  

	2.2	Number of Loans 

  
 No more than ten (10) Loans shall be outstanding at any time. 
  

	2.3	Limits 

  

	(a)	The aggregate Original Dollar Amount of all outstanding Loans shall not exceed the Total Commitments. 

  

	(b)	No Bank is obliged to participate in a Loan if it would cause the Original Dollar Amount of the aggregate of its participations in the Loans to exceed its Commitment.


  

	2.4	Nature of a Finance Party’s rights and obligations 

  

	(a)	The obligations of a Finance Party under the Finance Documents are several. Failure of a Finance Party to carry out those obligations does not relieve any other Party of its
obligations under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

  

	(b)	The rights of a Finance Party under the Finance Documents are divided rights. A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those
rights. 

  

 16 









	2.5	Change of Currency 

  
 If a change in any currency of a country occurs, this Agreement will be amended to the extent the Agent acting reasonably and in consultation with the
Company specifies to be necessary to reflect the change in currency and to put the Banks in the same position, so far as possible, that they would have been in if no change in currency had occurred. 
  

	3.	PURPOSE  

  

	3.1	Loans 

  
 The Company shall apply each Loan towards: 
  

	 	(a)	its working capital requirements; 

  

	 	(b)	acquisitions, provided the total consideration in respect of any such acquisition does not exceed U.S.$200,000,000; and 

  

	 	(c)	refinancing Existing Facility A of the Existing Facility Agreement in full. 

  

	3.2	No obligation to monitor 

  
 Without affecting the obligations of the Company in any way, no Finance Party is bound to monitor or verify the application of any Loan. 
  

	4.	CONDITIONS PRECEDENT  

  

	4.1	Documentary conditions precedent 

  
 The obligations of each Finance Party to the Company under this Agreement are subject to the condition precedent that the Agent has notified the Company
and the Banks that it has received all of the documents set out in Schedule 2 in form and substance satisfactory to the Agent. 
  

	4.2	Further conditions precedent 

  
 The obligations of each Bank to participate in a Loan are subject to the further conditions precedent that on both the date of the Request and the
Utilisation Date for that Loan: 
  

	 	(i)	the representations and warranties in Clause 15 (Representations and Warranties) to be repeated on those dates are correct and will be correct immediately after the Loan is made;
and 

  

	 	(ii)	no Default or, in the case of a Rollover Loan, no Event of Default is outstanding or could reasonably be expected to result from the making of the Loan. 

  

	5.	UTILISATION - LOANS  

  

	5.1	Receipt of Requests 

  
 On or after 12th June, 2004 the Company may borrow a Loan if the Agent receives a duly completed Request, not later than 12.00 noon one Business Day
before the applicable Rate Fixing Day. 
  

 17 









	5.2	Completion of Requests  

  
 A Request for a Loan will not be regarded as having been duly completed unless: 
  

	 	(a)	the Utilisation Date is a Business Day falling within the Availability Period; 

  

	 	(b)	the principal amount of the Loan is a minimum of US$10,000,000 and an integral multiple of US$5,000,000 (or its equivalent in an Optional Currency) or the principal amount of the
Loan is equal to the balance of the undrawn Total Commitments as at the proposed Utilisation Date; 

  

	 	(c)	one Term is specified which: 

  

	 	(i)	does not extend beyond the Final Maturity Date; and 

  

	 	(ii)	is a period of one, two, three or six months. 

  

	 	(d)	the payment instructions comply with Clause 10 (Payments); 

  

	 	(e)	the amount selected under paragraph (b) above does not cause Clause 2.3 (Limits) to be contravened; and 

  

	 	(f)	if the currency selected is an Optional Currency it complies with Clause 9 (Optional Currencies). 

  

	5.3	Amount of each Bank’s participation in a Loan  

  
 The amount of each Bank’s participation in each Loan will be equal to the proportion of that Loan which its Commitment bears to the Total Commitments
on the date of receipt of the relevant Request. 
  

	5.4	Notification of the Banks  

  
 The Agent shall promptly notify each Bank of the details of the requested Loan and the amount of its participation in the Loan. 
  

	5.5	Payment of proceeds  

  
 Subject to the terms of this Agreement, each Bank shall make its participation in each Loan available to the Agent for the Company on the relevant
Utilisation Date. 
  

	6.	REPAYMENT  

  

	(a)	The Company must repay each Loan made to it in full on its Repayment Date. 

  

	(b)	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-borrowed. 

  

	(c)	Any amount of any Loan still outstanding on the Final Maturity Date shall be repaid on that Final Maturity Date. 

  

	(d)	In relation to any outstanding Loan, if the Company does not serve a Request requesting a Loan with a proposed Utilisation Date on the last day of the Term for the outstanding Loan
in an amount at least equal to that Loan, the Company shall, unless it specifically notifies the Agent to the contrary not later than 3 Business Days prior to the last day of the relevant Term 

  

 18 








 be deemed to have served a Request and to have made the confirmations in paragraphs 2 to 4 inclusive of
the form of request in Schedule 4 (Form of Request) to this Agreement requesting a Loan in an equal amount to the outstanding Loan, with a proposed Utilisation Date of the last day of the Term, with a term of 3 months. The proceeds of the new Loan,
when made in accordance with the terms of this Agreement, shall be applied in repayment of the outstanding Loan. 
  

	7.	PREPAYMENT AND CANCELLATION  

  

	7.1	Automatic cancellation of the Total Commitments 

  
 The Commitment of each Bank shall be automatically cancelled at close of business on the last day of the Availability Period. 
  

	7.2	Voluntary cancellation 

  
 The Company may, by giving not less than five days’ prior notice to the Agent, cancel the unutilised portion of the Total Commitments in whole or in
part (but, if in part, in a minimum Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the unutilised Total Commitments, whichever is lower). Any cancellation in part shall be applied
against the Commitment of each Bank pro rata. 
  

	7.3	Voluntary Prepayment 

  
 The Company may, on giving not less than ten days’ prior notice to the Agent, prepay all or any part of the Loans (but, if in part, in a minimum
Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the outstanding Loans under the Facility, whichever is lower). Any partial prepayment of the Loans shall be applied pro rata against the
participation of each Bank in that Loan. 
  

	7.4	Additional right of prepayment and cancellation 

  
 If the Company is required to pay any amount to or for the account of a Bank under Clause 11 (Taxes) or Clause 13 (Increased Costs) the Company may,
whilst the circumstances giving rise to the requirement continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling five Business Days after the date of service of the notice: 
  

	 	(a)	the Company shall prepay that Bank’s participation in all the Loans together with all other amounts payable by it to that Bank under this Agreement; and


  

	 	(b)	the Bank’s Commitment shall be cancelled. 

  

	7.5	Miscellaneous provisions 

  

	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable. The Agent shall notify the Banks promptly of receipt of any such notice. 


 

	(b)	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid. 

  

	(c)	No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement. 

  

 19 









	(d)	Subject to the terms of this Agreement, any amount of a Loan repaid under this Agreement may subsequently be re-borrowed. 

  

	(e)	No amount of any Commitment cancelled under this Agreement may subsequently be reinstated. 

  

	7.6	Mandatory prepayment - change of control 

  

	(a)	For the purposes of this Clause: 

  
 a change of control occurs if any person or group of persons acting in concert gains control of the Company; 
  
 acting in concert has the meaning given to it in the City Code on
Takeovers and Mergers; and 
  
 control has the meaning
given to it in section 416 of the Income and Corporation Taxes Act 1988. 
  

	(b)	The Company must promptly notify the Agent if it becomes aware of any change of control. 

  

	(c)	Within 30 days after the earlier of notification by the Company to the Agent, or the Agent to the Banks, of a change of control, any Bank may, by notice from the Agent to the
Company: 

  

	 	(i)	cancel that Bank’s Commitment; and 

  

	 	(ii)	declare all that Bank’s Pro Rata Share in outstanding Loans, together with accrued interest and all other amounts accrued under the Finance Documents, to be immediately due and
payable. 

  
 Any such notice will take effect in
accordance with its terms. 
  

	7.7	Mandatory prepayment - securitisation proceeds 

  
 To the extent a securitisation by a UK Subsidiary is permitted under, and a prepayment is required by, Clause 16.13(e) (Restriction on Borrowings of UK
Subsidiaries): 
  

	 	(a)	if any UK Subsidiary receives proceeds from any securitisation of assets of the Group or transaction of a similar effect (the Securitisation Proceeds), the Company shall
notify the Agent promptly after receipt of those proceeds; 

  

	 	(b)	the Company shall promptly following receipt of those proceeds by the relevant member of the Group repay or prepay an amount equal to 75 per cent. of the Securitisation Proceeds
(less any fees, costs and expenses relating to the relevant issue of debt securities) in repayment or prepayment of the Loans and the Existing Facility B Loans, pro rata. 

  

	 	(c)	Total Commitments and Existing Facility B Total Commitments shall be cancelled on a pro rata basis by an amount equal to 75 per cent. of the Securitisation Proceeds.


  

 20 









	7.8	Mandatory prepayment - proceeds of new Group indebtedness 

  
 To the extent Borrowings by UK Subsidiaries are permitted under, and a prepayment is required by, paragraphs (d) and (g) of Clause 16.13 (Restriction on
Borrowings of UK Subsidiaries): 
  

	 	(a)	if any UK Subsidiary incurs any Borrowings after the date of this Agreement, the Company shall notify the Agent promptly after receipt of those proceeds; 


 

	 	(b)	the Company shall promptly following receipt by the relevant UK Subsidiary of any proceeds from the relevant Borrowings, repay or prepay an amount equal to 100 per cent. of those
proceeds (less any fees, costs and expenses relating to the Borrowings): in repayment or prepayment of the Loans and the Existing Facility B Loans, pro rata. 

  

	 	(c)	the Total Commitments and Existing Facility B Total Commitments shall be cancelled on a pro rata basis by an amount equal to 100 per cent. of the proceeds referred to in paragraph
(a) above. 

  

	8.	INTEREST  

  

	8.1	Interest rate 

  
 Subject to Clause 8.5 (Default interest), the rate of interest on each Loan for its Term is the rate per annum determined by the Agent to be the aggregate
of the applicable: 
  

	 	(a)	Margin; 

  

	 	(b)	IBOR; and 

  

	 	(c)	Mandatory Cost. 

  

	8.2	Margin adjustment 

  
 Any reduction or increase in the Margin during the Term of a Loan shall be determined on the Business Day immediately following receipt by the Agent of a
notice referred to in Clause 16.17 (Rating change) from the Company (or any equivalent notice from a Finance Party) and shall take effect from the date on which the relevant change in, or withdrawal of, the long term credit rating assigned to the
Company by S&P, Moody’s or any other rating agency approved for this purpose by the Majority Banks (as the case may be) was first published. 
  

	8.3	Non-Business Days 

  
 If a Term would otherwise end on a day which is not a Business Day, that Term shall instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not). 
  

	8.4	Due dates 

  
 Except as otherwise provided in this Agreement, accrued interest on each Loan is payable by the Company on the last day of its Term and also, if the Term
is longer than 6 months, on the date falling at 6 monthly intervals after the first day of that Term. 
  

 21 









	8.5	Default interest 

  

	(a)	If the Company fails to pay any amount payable by it under the Finance Documents, it shall forthwith on demand by the Agent pay interest on the overdue amount from the due date up
to the date of actual payment, both before, on and after judgement, at a rate (the default rate) determined by the Agent to be one per cent. per annum above the rate which would have been payable if the overdue amount had, during the period
of non-payment, constituted a Loan in the currency of the overdue amount for such successive Terms of such duration as the Agent may determine (each a Designated Term), that default rate applying to those overdue amounts instead of the rate
under Clause 8.1 (Interest rate). 

  

	(b)	The default rate will be determined on each Business Day or the first day of the relevant Designated Term, as appropriate. 

  

	(c)	If the Agent is informed that deposits in the currency of the overdue amount are not at the relevant time being made available by the Reference Banks to leading banks in the London
interbank market, the default rate will be determined by reference to the cost of funds to the Agent from whatever sources it reasonably selects, after consultation with the Reference Banks. 

  

	(d)	Default interest will be compounded at the end of each Designated Term. 

  

	8.6	Notification of rates of interest 

  
 The Agent shall promptly notify each relevant Party of the determination of a rate of interest under this Agreement. 
  

	8.7	Terms 

  

	(a)	Each Loan has one Term only which will commence on its Utilisation Date. 

  

	(b)	The Company will select the Term for a Loan in the relevant Request. If the Company does not deliver a notice, the Term will be three months. 

  

	(c)	Subject to the following provisions of this Clause, each Term for a Loan will be one, two, three or six months. 

  

	(d)	If a Term would otherwise overrun the Final Maturity Date it shall be shortened so that it ends on the Final Maturity Date. 

  

	9.	OPTIONAL CURRENCIES  

  

	9.1	Selection 

  

	(a)	The Company shall select the currency of a Loan in the relevant Request. 

  

	(b)	The currency of each Loan must be US Dollars or an Optional Currency. 

  

	(c)	The Company may not choose a currency if as a result the Loans would be denominated at any time in more than 3 currencies. 

  

	(d)	The Agent shall notify each Bank of the currency and the Original Dollar Amount of each Loan and the applicable Agent’s Spot Rate of Exchange promptly after they are
ascertained. 

  

 22 









	9.2	Revocation of currency 

  
 If, before 9.30 a.m. on any Rate Fixing Day, the Agent receives notice from a Bank that: 
  

	 	(a)	it is impracticable for the Bank to fund its participation in the relevant Loan in the relevant Optional Currency during its Term in the ordinary course of business in the London
interbank market; and/or 

  

	 	(b)	the use of the proposed Optional Currency might contravene any law or regulation, 

  
 the Agent shall give notice to the Company and to the Banks to that effect before 11.00 a.m. on that day. In this event:

  

	 	(i)	the Company and the Banks may agree that the drawdown will not be made; or 

  

	 	(ii)	in the absence of agreement, that Bank’s participation in the Loan (or, if more than one Bank is similarly affected, those Banks’ participations in the Loan) shall be
treated as a separate Loan denominated in US Dollars during the relevant Term. 

  

	9.3	Optional Currency equivalents 

  
 The equivalent in US Dollars of a Loan or part of a Loan in an Optional Currency for the purposes of calculating: 
  

	 	(a)	whether any limit under this Agreement has been exceeded; 

  

	 	(b)	the amount of a Loan; 

  

	 	(c)	the share of a Bank in a Loan; 

  

	 	(d)	the amount of any repayment of a Loan; or 

  

	 	(e)	the undrawn amount of a Bank’s Commitment, 

  
 is its Original Dollar Amount. 
  

	9.4	Notification of rates and amounts 

  
 The Agent shall promptly notify each Party of any applicable Agent’s Spot Rate of Exchange or Original Dollar Amount. 
  

	10.	PAYMENTS 

  

	10.1	Place 

  
 All payments by the Company or a Bank under the Finance Documents shall be made to the Agent to its account at such office or bank as it may notify to the
Company or that Bank for this purpose. 
  

	10.2	Funds 

  
 Payments under the Finance Documents to the Agent shall be made for value on the due date at such times and in such funds as the Agent may specify to the
Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 
  

 23 









	10.3	Distribution 

  

	(a)	Each payment received by the Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent to that Party by payment (on
the date and in the currency and funds of receipt) to its account with such office or bank: 

  

	 	(i)	in the principal financial centre of the relevant currency; or 

  

	 	(ii)	in the case of euro units or national currency units, in the principal financial centre of a Participating Member State or London, 

  
 as it may notify to the Agent for this purpose by not less than 5 Business
Days’ prior notice. 
  

	(b)	The Agent may apply any amount received by it for the Company in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Company under
the Finance Documents. 

  

	(c)	Where a sum is to be paid under the Finance Documents to the Agent for the account of another Party, the Agent is not obliged to pay that sum to that Party until it has established
that it has actually received that sum. The Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not
been made available but the Agent has paid a corresponding amount to another Party, that Party shall forthwith on demand refund the corresponding amount to the Agent together with interest on that amount from the date of payment to the date of
refund, calculated at a rate determined by the Agent to reflect its cost of funds. 

  

	10.4	Currency 

  

	(a)	A repayment or prepayment of a Loan or any part of a Loan is payable in the currency in which the Loan is denominated on its due date. 

  

	(b)	Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated. 

  

	(c)	Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred. 

  

	(d)	Any other amount payable under the Finance Documents is, except as otherwise provided in this Agreement, payable in US Dollars. 

  

	10.5	Set-off and counterclaim 

  
 All payments made by the Company under the Finance Documents shall be made without set-off or counterclaim. 
  

	10.6	Non-Business Days 

  

	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on the principal at the rate payable on the original due date.


  

 24 









	10.7	Partial payments 

  

	(a)	If the Agent receives a payment insufficient to discharge all the amounts then due and payable by the Company under the Finance Documents, the Agent shall apply that payment towards
the obligations of the Company under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment of any unpaid costs and expenses of the Agent under the Finance Documents; 

  

	 	(ii)	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 19.2 (Commitment fee) and Clause 19.3 (Utilisation fee); 

  

	 	(iii)	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and 

  

	 	(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

	(b)	The Agent shall, if so directed by all the Banks, vary the order set out in subparagraphs (a)(ii) to (iv) above. 

  

	(c)	Paragraphs (a) and (b) above shall override any appropriation made by the Company. 

  

	10.8	Netting of payments 

  

	(a)	If on any date an amount (the first amount) is to be advanced or paid by a Bank under this Agreement and an amount (the second amount) is due from the Company to that
Bank under the Finance Documents, the Company instructs that Bank to apply the first amount in or towards payment of the second amount. 

  

	(b)	The relevant Bank shall remain obliged to advance any excess (or, as the case may be, the Company shall remain obliged to pay any shortfall) in accordance with this Clause 10.
Nothing in this Clause 10.8 shall be effective to create a charge. 

  

	11.	TAXES 

  

	11.1	Gross-up 

  
 All payments by the Company under the Finance Documents shall be made free and clear of and without deduction for or on account of any taxes levied or
imposed by or on behalf of the UK or any taxing authority thereof or therein except to the extent that the Company is required by law to make payment subject to any taxes. If any tax or amounts in respect of tax must be deducted from any amounts
payable or paid by the Company, or paid or payable by the Agent to a Bank, under the Finance Documents, the Company shall pay such additional amounts as may be necessary to ensure that the relevant Bank receives a net amount equal to the full amount
which it would have received had payment not been made subject to tax. 
  

	11.2	Tax receipts 

  
 All taxes required by law to be deducted or withheld by the Company from any amounts paid or payable under the Finance Documents shall be paid by the
Company when due and the Company shall, within 30 days of the payment being made, deliver to the Agent for the relevant Bank an original or certified copy of an official receipt or such other evidence, if any, as is then customary, evidencing that
such deduction or withholding has been made and has been accounted for to the appropriate authorities. 
  

 25 









	11.3	Qualifying Banks 

  

	(a)	If, otherwise than as a result of the introduction of, change in, or change in the interpretation, administration or application of, any law, treaty or regulation or any practice or
concession of the UK Inland Revenue occurring after the date of this Agreement, a Bank is not or has ceased to be a Qualifying Bank or is not or has ceased to be beneficially entitled to all interest received by it in respect of advances made by it
under this Agreement, the Company will not be liable to pay to or for the account of that Bank under Clause 11.1 (Gross-up) any amount in respect of taxes levied or imposed by the UK or any taxing authority of or in the UK in excess of the amount it
would have been obliged to pay if that Bank had been, or had not ceased to be a Qualifying Bank and had been beneficially entitled to all interest received by it in respect of advances made by it under this Agreement. 

  

	(b)	Each Bank warrants and represents to the Company on the date of this Agreement or (if later) on the date on which it becomes a Party that it is a Qualifying Bank and is beneficially
entitled to all interest receivable by it in respect of advances made by it under this Agreement. 

  

	(c)	Each Bank which ceases to be a Qualifying Bank or which ceases to be beneficially entitled to interest received by it in respect of advances made by it under this Agreement will
notify the Company forthwith upon becoming aware that it has so ceased. 

  

	11.4	Tax Credit 

  

	(a)	If the Company makes a payment pursuant to Clause 11.1 (Gross-up) for the account of any Bank and that Bank has received or been granted and utilised on an affiliated group basis a
credit against, or relief or remission or repayment of, any tax paid or payable by it (a Tax Credit) which is attributable to that payment or the corresponding payment under the Finance Document that Bank shall, to the extent that it can do
so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to the Company such amount as the Bank shall have reasonably determined to be attributable to such payments and which will leave the Bank (after
such payment) in no better or worse position than it would have been if the Company had not been required to make any deduction or withholding. 

  

	(b)	Nothing in this Clause 11.4 shall interfere with the right of a Bank to arrange its tax affairs in whatever manner it thinks fit and without limiting the foregoing no Bank shall be
under any obligation, except as expressly stated in sub-clause (a) above, to claim a Tax Credit or to claim a Tax Credit in priority to any other claims, relief, credit or deduction available to it. No Bank shall be obliged to disclose any
information relating to its tax affairs or any computations in respect thereof. 

  

	11.5	Tax indemnity 

  
 In this Clause 11.5, Protected Party means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on
account of tax in relation to a sum received or receivable (or any sum deemed for the purposes of tax to be received or receivable) under a Finance Document. 
  

	 	(a)	The Company shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines
will be or has been (directly or indirectly) suffered for or on account of tax by that Protected Party in respect of a Finance Document. 

  

 26 









	 	(b)	Paragraph (a) above shall not apply: 

  

	 	(i)	with respect to any tax assessed on a Finance Party: 

  

	 	(A)	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or 

  

	 	(B)	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,


  
 if that tax is imposed on or calculated by
reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or 
  

	 	(ii)	to the extent a loss, liability or cost: 

  

	 	(A)	is compensated for by an increased payment under Clause 11.1 (Gross-up) or 

  

	 	(B)	would have been compensated for by an increased payment under Clause 11.1 (Gross-up) but was not so compensated solely because one of the exclusions in Clause 11.3(a) (Qualifying
Banks) applied. 

  

	 	(c)	A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall notify the Company. 

  

	 	(d)	A Protected Party shall, on receiving a payment from a Company under this Clause 11.5, notify the Agent. 

  

	12.	MARKET DISRUPTION 

  

	12.1	Market disturbance 

  

	(a)	If IBOR is to be determined by reference to the Reference Banks and a Reference Bank does not supply an offered rate by 11.30 a.m. on the applicable Rate Fixing Day, the applicable
IBOR shall, subject to paragraph (b) below, be determined on the basis of the quotations of the remaining Reference Banks. 

  

	(b)	If, in relation to any proposed Loan: 

  

	 	(i)	IBOR is to be determined by reference to the Reference Banks and no, or only one, Reference Bank supplies a rate by 11.30 a.m. on the applicable Rate Fixing Day for the purposes of
determining the applicable IBOR; or 

  

	 	(ii)	the Agent otherwise determines (which determination, made by the Agent acting reasonably, shall be conclusive and binding on all parties) that adequate and fair means do not exist
for ascertaining the applicable IBOR, 

  
 the Agent
shall promptly notify the Company and the relevant Banks of the fact and that this Clause 12 is in operation. 
  

 27 









	12.2	Alternative rates 

  
 If the Agent gives a notice under Clause 12.1 (Market disturbance): 
  

	 	(a)	the Company and the Banks may (through the Agent) agree that in the case of a Loan which has not been borrowed, that Loan shall not be borrowed; or 

  

	 	(b)	in the absence of agreement, a Loan (if it has not been borrowed) shall still be made: and 

  

	 	(i)	the Term of the Loans concerned shall be one month; and 

  

	 	(ii)	during the Term of each Loan the rate of interest applicable to that Loan shall be the applicable Margin plus the Mandatory Cost plus the rate per annum which is expressed as a
percentage rate per annum of the cost to the Bank concerned of funding that Loan from whatever sources it may reasonably select, which rate shall be notified by the Bank concerned to the Agent before that last date of such Term.


  

	13.	INCREASED COSTS 

  

	13.1	Increased costs 

  

	(a)	Subject to Clause 13.2 (Exceptions), the Company shall forthwith on demand by a Finance Party or any of its Affiliates pay that Finance Party the amount of any increased cost
incurred by it as a result of: 

  

	 	(i)	the introduction of, or any change in, or any change in the interpretation or application of, any law or regulation (including any relating to taxation or reserve asset, special
deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control); or 

  

	 	(ii)	compliance with any law or regulation made after the date of this Agreement. 

  

	(b)	In this Agreement increased cost means: 

  

	 	(i)	an additional cost incurred by a Finance Party or any of its Affiliates as a result of it having entered into, or performing, maintaining or funding its obligations under, this
Agreement; or 

  

	 	(ii)	that portion of an additional cost incurred by a Finance Party or any of its Affiliates in making, funding or maintaining all or any advances comprised in a class of advances formed
by or including the participations in the Loans made or to be made under this Agreement as is attributable to it making, funding or maintaining those participations; or 

  

	 	(iii)	a reduction in any amount payable to a Finance Party or any of its Affiliates or the effective return to a Finance Party or any of its Affiliates under this Agreement or on its
capital; or 

  

	 	(iv)	the amount of any payment made by a Finance Party or any of its Affiliates, or the amount of interest or other return foregone by a Finance Party or any of its Affiliates,
calculated by reference to any amount received or receivable by a Finance Party or any of its Affiliates from any other Party under this Agreement. 

  

 28 









	13.2	Exceptions 

  
 Clause 13.1 (Increased costs) does not apply to any increased cost: 
  

	 	(a)	compensated for by the payment of the Mandatory Cost; 

  

	 	(b)	attributable to any tax or amounts in respect of tax which must be deducted from any amounts payable or paid by the Company or payable or paid by the Agent to a Finance Party or any
of its Affiliates under the Finance Documents; 

  

	 	(c)	attributable to any change in the rate of tax on the overall net income, profits or gains of a Bank (or the overall net income, profits or gains of a division or branch of the Bank)
imposed in the jurisdiction in which its principal office or Facility Office is situate. 

  

	14.	ILLEGALITY AND MITIGATION 

  

	14.1	Illegality 

  
 If it is or becomes unlawful in any jurisdiction for a Bank to give effect to any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Loan, then: 
  

	 	(a)	the Bank may notify the Company through the Agent accordingly; and 

  

					
	 (b)
	  	(i)	  	the Company shall to the extent required and within the period allowed by law or regulation or, if no period is allowed by law or regulation, forthwith prepay that Bank’s participation
in all the Loans together with all other amounts payable by it to that Bank under this Agreement; and

  

	 	(ii)	the Bank’s Commitment shall be cancelled. 

  

	14.2	Mitigation 

  
 Notwithstanding the provisions of Clauses 11 (Taxes), 13.1 (Increased costs) and 14.1 (Illegality), if in relation to a Bank or (as the case may be) the
Agent circumstances arise which would result in: 
  

	 	(a)	any deduction, withholding or payment of the nature referred to in Clause 11 (Taxes); or 

  

	 	(b)	any increased cost of the nature referred to in Clause 13.1 (Increased costs); or 

  

	 	(c)	a notification pursuant to 14.1 (Illegality), 

  
 then without in any way limiting, reducing or otherwise qualifying the rights of that Bank or the Agent, that Bank shall upon becoming aware of the same
notify the Agent thereof (whereupon the Agent shall notify the Company) and such Bank shall use reasonable endeavours to transfer its participation in the Facility and, in the case of the Agent or that Bank, its rights hereunder and under the
Finance Documents to another financial institution or Facility Office not affected by the circumstances having the results set out in (a), (b) or (c) above and shall otherwise take such reasonable steps as may be open to it to mitigate the effects
of such circumstances provided that such Bank or the Agent (as the case may be) shall not be under any obligation to take any such action if, in its reasonable opinion, to do so 
  

 29 








 might have a material adverse effect upon its business, operations or financial condition or might
involve it in any unlawful activity or any activity that is contrary to any request, guidance or directive of any competent authority (whether or not having the force of law) or (unless indemnified to its satisfaction) might involve it in any
expense or tax disadvantage. 
  

	15.	REPRESENTATIONS AND WARRANTIES 

  

	15.1	Representations and warranties 

  
 The Company (in respect of itself and the Group) makes the representations and warranties set out in this Clause 15 (Representations and warranties) to
each Finance Party. 
  

	15.2	Status 

  

	(a)	It is a limited liability company, duly incorporated and validly existing under the laws of the jurisdiction of its incorporation; and 

  

	(b)	each member of the Group has the power to own its assets and carry on its business as it is being conducted. 

  

	15.3	Powers and authority 

  
 It has the power to enter into and perform, and has taken all necessary action to authorise the entry into, performance and delivery of, the Finance
Documents to which it is or will be a party and the transactions contemplated by those Finance Documents. 
  

	15.4	Legal validity 

  
 Each Finance Document to which it is or will be a party constitutes, or when executed in accordance with its terms will constitute, its legal, valid and
binding obligation, enforceable (subject to the Reservations) in accordance with its terms. 
  

	15.5	Non-conflict 

  
 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 
  

	 	(a)	any law or regulation or judicial or official order; or 

  

	 	(b)	the constitutional documents of any member of the Group; or 

  

	 	(c)	to the best of the knowledge, information and belief of its Directors, any document which is binding upon any member of the Group or any asset of any member of the Group, to an
extent or in a manner which would have a material adverse effect on its ability to perform its obligations under this Agreement. 

  

	15.6	No default 

  

	(a)	No Default is outstanding or would result from the making of any Loan; and 

  

	(b)	no other event is outstanding which constitutes (or, with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition or
any combination of the foregoing, is reasonably likely to constitute) a default under any document which is binding on any member of the Group or any asset of any member of the Group to an extent or in a manner which might have a material adverse
effect on its ability to perform its obligations under the Finance Documents. 

  

 30 









	15.7	Authorisations and admissibility in evidence 

  
 All authorisations required: 
  

	 	(a)	in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents; and 

  

	 	(b)	to make the Finance Documents admissible in evidence in England and Wales, 

  

	 	have	been obtained or effected (as appropriate) and are in full force and effect. 

  

	15.8	Licences 

  
 Each member of the Group which requires a Licence for the conduct of its business has been duly licensed. 
  

	15.9	Accounts 

  
 The audited consolidated accounts of the Group most recently delivered to the Agent (which in respect of the Company only, at the date of this Agreement,
are the Original Group Accounts): 
  

	 	(a)	have been prepared in accordance with accounting principles and practices generally accepted in the United Kingdom consistently applied; and 

  

	 	(b)	fairly represent the consolidated financial condition of the Group as at the date to which they were drawn up. 

  

	15.10	Litigation 

  
 Save as disclosed in writing to the Agent prior to the date of this Agreement, no litigation, arbitration or administrative proceedings in relation to any
member of the Group are current or, to its knowledge, pending or threatened, which are reasonably expected to be adversely determined and which would, if adversely determined, be likely to have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. 
  

	15.11	Information 

  

	(a)	All of the factual information (including all information relating to the Company provided in the information memorandum dated 27th April, 2004 (the Information Memorandum))
supplied by it to the Agent in connection with the Finance Documents is true in all material respects and not misleading in any respect and there are no facts or matters not disclosed in writing to the Agent the omission of which makes any such
factual information incorrect or misleading in any respect. 

  

	(b)	Nothing has occurred since the date the information was provided which renders the information contained in it untrue or misleading in any material respect and which, if disclosed,
may affect the decision of a person considering whether to enter into this Agreement. 

  

 31 









	(c)	The financial projections contained or referred to in the Information Memorandum have been prepared as at their date, on the basis of recent historical information and assumptions
believed by the Company to be reasonable. 

  

	(d)	Each expression of opinion or intention contained in the financial projections referred to in paragraph (c) above was made after careful consideration and enquiry and is believed by
the Company to be reasonable as at the date at which it is stated to be given. 

  

	15.12	Pari passu ranking 

  
 Its payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured payment obligations, except
for obligations mandatorily preferred by law applying to companies generally. 
  

	15.13	No material adverse change 

  
 As at the date of this Agreement, there has been no material adverse change in the consolidated financial condition of the Group since the date to which
the Original Group Accounts were drawn up. 
  

	15.14	Deduction of Tax 

  

	(a)	It is not overdue in the filing of any tax returns or filings relating to any material amount of tax and it is not overdue in the payment of any material amount of, or in respect
of, tax. 

  

	(b)	No claims or investigations by any tax authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of or
claim against any member of the Group to pay any material amount of, or in respect of, tax. 

  

	(c)	For tax purposes, it is resident only in the jurisdiction of its incorporation. 

  

	(d)	All amounts payable by it under the Finance Documents may be made without any deduction for or on account of tax. 

  

	15.15	Labour-related liabilities 

  

	(a)	No claims or investigations by any relevant authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of
or claim against any member of the Group to pay any material amount of, or in respect of, pensions, ERISA or similar labour-related liabilities. 

  

	(b)	Each relevant member of the Group has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in
compliance in all material respects with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan. Where applicable, no member of the Group has (i) failed to make any contribution or payment to any Plan or
Multiemployer Plan (as the case may be), or made any amendment to any Plan, which has resulted or would result in the imposition of a Security Interest or the posting of a bond or other security under ERISA or the Internal Revenue Code or (ii)
incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA, except where such failure or incurrence would not have a material adverse effect on the ability of the Company to perform its
obligations under this Agreement. 

  

 32 








 For the purposes of this Clause: 
  
 ERISA means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute. 
  
 Internal Revenue Code means the Internal Revenue Code of 1986, as
amended, or any successor statute. 
  
 Multiemployer Plan
means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made
contributions, including for these purposes any company which ceased to be a member of the Group during such five year period. 
  
 PBGC means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 Plan means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any relevant member of the Group for employees
of any relevant member of the Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any company which was at such time a member of the Group for employees of any company which was at such time a member
of the Group. 
  

	15.16	Winding up, insolvency etc. 

  
 No meeting has been convened for the winding-up, administration, dissolution or liquidation of the Company, no such step is intended by the Company and,
so far as the Company is aware, no petition, application or equivalent or analogous procedure under the law of the jurisdiction of its incorporation is outstanding for the winding-up, administration, dissolution or liquidation of the Company.

  

	15.17	Environment 

  

	(a)	It has obtained all Environmental Licences required for the carrying on of its business as currently conducted and has at all times complied with: 

  

	 	(i)	the terms and conditions of such Environmental Licences; and 

  

	 	(ii)	all other applicable Environmental Laws, 

  
 where, in each case, if not obtained or complied with the failure or its consequences would have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. There are to its knowledge no circumstances that may prevent or interfere with such compliance in the future. 
  

	(b)	There is no Environmental Claim pending or formally threatened and there are no past or present acts, omissions, events or circumstances that would form, or are reasonably likely to
form, the basis of any Environmental Claim (including any arising out of the generation, storage, transport, disposal or release of any dangerous substance) against any member of the Group which, if adversely determined, would have a material
adverse effect on the ability of the Company to perform its obligations under this Agreement. 

  

 33 









	15.18	Times for making representations and warranties 

  
 The representations and warranties set out in this Clause 15 are made by the Company on the date of this Agreement and, other than Clause 15.11
(Information) and 15.13 (No material adverse change), are deemed to be repeated by the Company on the date of each Request, the date of each deemed Request made pursuant to Clause 6(d) (Repayment), each Utilisation Date and the first day of each
Term, with reference to the facts and circumstances then existing, and in any case on a quarterly basis following the date of this Agreement. 
  

	16.	UNDERTAKINGS 

  

	16.1	Duration 

  
 The undertakings in this Clause 16 (Undertakings) will remain in force from the date of this Agreement for so long as any amount is or may be outstanding
under this Agreement or any Commitment is in force. 
  

	16.2	Financial information 

  

	(a)	The Company shall supply to the Agent in sufficient copies for all the Banks: 

  


	 	(i)	as soon as the same are available (and in any event within 180 days of the end of each of its financial years) the audited consolidated accounts of the Group for that financial
year; 

  

	 	(ii)	as soon as the same are available (and in any event within 90 days of the end of the first half-year of each of its financial years) the unaudited consolidated accounts of the Group
for that half-year; 

  

	 	(iii)	(in respect of the Company only), together with the accounts specified in: 

  

	 	(A)	paragraph (i) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 16.12 (Financial
covenants) as at the date to which those accounts were drawn up, together with a report from the Company’s auditors in the agreed form; 

  

	 	(B)	paragraph (ii) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 16.12 (Financial
covenants) as at the date to which those accounts were drawn up; and 

  

	 	(iv)	as soon as the same are available (and in any event within 90 days from the end of the period for which they are produced) the quarterly unaudited consolidated accounts of the
Group. 

  

					
	 (b)
	  	 (i) 	 	 The Company must notify the Agent of any change to the manner in which its audited consolidated accounts are prepared.


  

	 	(ii)	If requested by the Agent, the Company must supply to the Agent: 

  

	 	(A)	a full description of any change notified under paragraph (b)(i) above; and 

  

 34 









	 	(B)	sufficient information to enable the Finance Parties to make a proper comparison between the financial position shown by the set of accounts prepared on the changed basis and its
most recent audited consolidated accounts delivered to the Agent under this Agreement. 

  

	 	(iii)	The Company may, or if requested by the Agent the Company must, enter into discussions for a period of not more than 30 days with a view to agreeing any amendments required to be
made to this Agreement to place the Company and the Banks in the same position as they would have been in if the change had not happened. Any agreement between the Company and the Agent will be, with the prior consent of the Majority Banks, binding
on all the Parties. 

  

	 	(iv)	If no agreement is reached under paragraph (iii) above on the required amendments to this Agreement, the Company must supply with each set of its accounts another set of its
accounts prepared on the same basis as the Original Group Accounts. 

  

	16.3	Information - Miscellaneous 

  
 The Company shall supply to the Agent: 
  

	 	(a)	all documents despatched by it to its shareholders (or any class of them) or its creditors (or any class of them) at the same time as they are despatched; 


 

	 	(b)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending, and which might, if adversely
determined, have a material adverse effect on its ability to perform its obligations under the Finance Documents; and 

  

	 	(c)	promptly, such further information in the possession or control of any member of the Group regarding its financial condition, business or operations as any Finance Party through the
Agent may reasonably request, 

  
 in sufficient
copies for all of the Banks, if the Agent so requests. 
  

	16.4	Notification of Default 

  
 The Company shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it. 
  

	16.5	Principal Subsidiaries 

  
 The Company shall promptly inform the Agent of the identity of each member of the Principal Subsidiary Group in each certificate which the Company
delivers under Clause 16.2(a)(iii) (Financial information). That certificate shall set out in reasonable detail computations establishing that the aggregate EBITDA and Net Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of
Consolidated EBITDA and Net Assets of the Group respectively. 
  

	16.6	Compliance certificates 

  
 The Company shall supply to the Agent promptly at any time, if the Majority Banks so request and they have or the Agent has grounds for believing that a
Default may be outstanding, a statement signed by one of its senior officers on its behalf incorporating such information as it has in its possession which may be relevant as to whether any Default is 
  

 35 








 outstanding and, if a Default is stated to be outstanding, stating the steps if any being taken to remedy
it. Such statements shall contain such certificates as the Majority Banks may reasonably require as to questions of fact which are within the knowledge of the Company. 
  

	16.7	Authorisations 

  
 The Company shall promptly: 
  

	 	(a)	obtain, maintain and comply with the terms of; and 

  

	 	(b)	if requested, supply certified copies to the Agent of, 

  
 any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any
Finance Document. 
  

	16.8	Pari passu ranking 

  
 The Company shall procure that its obligations under the Finance Documents do and will rank at least pari passu with all its other present and future
unsecured obligations, except for taxes, national insurance contributions, employee remuneration and benefits and any other obligations which from time to time are mandatorily preferred by law applying to companies generally. 
  

	16.9	Negative pledge 

  

	(a)	Subject to paragraph (b) below, the Company shall not, and shall procure that no other member of the Group will, create or permit to subsist, any Security Interest on any of its
assets. 

  

	(b)	Notwithstanding paragraph (a) above, each member of the Group may create, or permit to subsist, Permitted Security Interests on its assets. 

  

	16.10	Disposals 

  

	(a)	The Company shall not, and shall procure that any member of the Group shall not, either in a single transaction or in a series of transactions, whether related or not and whether
voluntarily or involuntarily sell, transfer, grant or lease or otherwise dispose of: 

  

	 	(i)	any Licence or its interest in any Mandatory Subsidiary or any other Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence;
or 

  

	 	(ii)	any material part of its assets (to the extent not prohibited by subparagraph (i) above). 

  

	(b)	Subparagraph (a)(ii) does not apply to: 

  

	 	(i)	disposals made in the ordinary course of business of the disposing entity; 

  

	 	(ii)	disposals of assets in exchange for other assets comparable or superior as to type, value and quality; 

  

	 	(iii)	the disposal of assets on arm’s length terms; 

  

 36 









	 	(iv)	sale and lease-back transactions the net financial effect of each of which (looking at the sale and any related lease-back together) represent a transaction on arm’s length
terms; and 

  

	 	(v)	disposals to which the Majority Banks have agreed in writing. 

  

	16.11	Environmental matters 

  
 The Company will procure that each member of the Group complies in all material respects with: 
  

	 	(a)	the terms and conditions of all Environmental Licences applicable to it; and 

  

	 	(b)	all other applicable Environmental Law, 

  
 where failure to comply with the relevant Environmental Licence or Environmental Law might reasonably be expected to have a material adverse effect on the
Company’s ability to perform its obligations under this Agreement. 
  

	16.12	Financial covenants 

  
 The Company shall procure that: 
  

	 	(a)	the ratio of Total Consolidated Net Borrowings to Consolidated EBITDA does not at any time exceed 4.0 to 1; and 

  

	 	(b)	as at the last day of each financial year and each financial half-year of the Company (each a Measurement Date): 

  

	 	(i)	the ratio of Operating Profit for the preceding twelve months of the Group to Net Interest Payable for the same period is not less than 2.50 to 1; and 

  

	 	(ii)	the ratio of Earnings to Consolidated Dividends is not less than 1.25 to 1 for any period of twelve months ending on a Measurement Date. 

  

	16.13	Restriction on Borrowings of UK Subsidiaries 

  
 The Company shall procure that no UK Subsidiaries will have outstanding any Borrowings, except for: 
  

	 	(a)	any Borrowing listed in Schedule 8 (Existing Borrowings) except, in relation to all such Borrowings other than the Retail Price Index Linked £175,000,000 bond with a final
maturity date of 13th October, 2024, to the extent the principal amount (in the currency stated in Schedule 8) under that Borrowing exceeds the amount stated in Schedule 8; 

  

	 	(b)	Borrowings incurred by UK Subsidiaries with the prior consent of the Majority Banks; 

  

	 	(c)	Borrowings owed by UK Subsidiaries to other UK Subsidiaries; 

  

	 	(d)	Borrowings by UK Subsidiaries under EIB Facilities and not exceeding US$200,000,000 (or its equivalent in other currencies) in aggregate, provided such Borrowings under the relevant
EIB Facilities cannot on their terms be repaid earlier 

  

 37 








 than the Final Maturity Date, and the Borrowings are used to repay or prepay the Loans and the Existing
Facility B Loans in accordance with Clause 7.8 (Mandatory prepayment - proceeds of new Group indebtedness); 
  

	 	(e)	Borrowings of UK Subsidiaries not exceeding £500,000,000 in aggregate in connection with a securitisation or transaction of a similar effect after the date of this Agreement
in respect of the assets of that UK Subsidiary, provided such Borrowings are used to repay or prepay the Loans and the Existing Facility B Loans in accordance with Clause 7.7 (Mandatory prepayment - securitisation proceeds);


  

	 	(f)	any Borrowings by a UK Subsidiary which is a directly wholly-owned special purpose finance Subsidiary of the Company, provided that any such Borrowings are directly on-lent to the
Company; 

  

	 	(g)	any other Borrowings of any UK Subsidiary not exceeding £200,000,000 (or its equivalent in other currencies) in aggregate so long as: 

  

	 	(i)	such Borrowings cannot, on their terms, be repaid in whole or in part earlier than the Final Maturity Date; and 

  

	 	(ii)	such Borrowings are used to repay or prepay the Loans and the Existing Facility B Loans in accordance with Clause 7.8 (Mandatory prepayment - proceeds of new Group indebtedness),


  
 provided that the aggregate of the Borrowings
of all UK Subsidiaries permitted under paragraphs (b) to (g) inclusive of this Clause 16.13 does not exceed, at any time, £650,000,000 (or its equivalent in other currencies) at that time. 
  
 In this Clause 16.13: 
  

	 	(A)	Borrowings of a Subsidiary of the Company arising in respect of guarantees issued by it, at any time, shall be taken into account in an amount equal to the actual (and not the
nominal) amount guaranteed by that guarantee at that time; and 

  

	 	(B)	Borrowings of Subsidiaries of the Company party to an intra-Group bank netting arrangement in relation to the usual operation of current accounts, at any time, shall be taken into
account only in an amount equal to the net debit balance outstanding in respect of all accounts subject to that netting arrangement, at that time. 

  


	16.14	Restrictions on Borrowings of non-UK Subsidiaries 

  

	(a)	The Company shall procure that PacifiCorp Total Debt will at no time exceed 60 per cent. of PacifiCorp Total Capitalisation. 

  

	(b)	For the purposes of this Clause: 

  
 Consolidated Subsidiary means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of Pacificorp in
its consolidated financial statements if such statements were prepared as of such date. 
  
 PacifiCorp Total Capitalisation means at any date, without duplication and after intercompany eliminations among Pacificorp and its Consolidated Subsidiaries, the sum of: 
  

	 	(i)	all Borrowings of PacifiCorp and its Consolidated Subsidiaries; 

  

 38 









	 	(ii)	preferred stock of PacifiCorp; and 

  

	 	(iii)	common stock equity of PacifiCorp, 

  
 all determined as of such date; provided that Qualifying Junior Subordinated Debt shall be included in PacifiCorp Total Capitalisation only if and
to the extent that the inclusion thereof does not cause the aggregate amount of all preferred stock and Qualifying Junior Subordinated Debt to exceed 15% of PacifiCorp Total Capitalisation. 
  
 PacifiCorp Total Debt means at any date, without duplication and
after intercompany eliminations among Pacificorp and its Consolidated Subsidiaries, the sum of: 
  

	 	(i)	all Borrowings of PacifiCorp and its Consolidated Subsidiaries (other than Qualifying Junior Subordinated Debt); and 

  

	 	(ii)	any portion of mandatorily redeemable preferred stock of PacifiCorp or any of its Consolidated Subsidiaries that is a current liability, 

  
 all determined as of such date. 
  
 Qualifying Junior Subordinated Debt means subordinated debt of
PacifiCorp which has: 
  

	 	(i)	an original maturity of 20 years or more; 

  

	 	(ii)	provisions permitting PacifiCorp to defer the payment of interest for a period or periods of 20 consecutive quarters or more; 

  

	 	(iii)	no principal payments that are due and payable until after the Final Maturity Date; and 

  

	 	(iv)	all other characteristics (except interest rate) materially no less favorable to PacifiCorp than PacifiCorp’s 8 1/4% Junior Subordinated Deferrable Interest Debentures, Series C maturing on 30th June, 2036 and described in PacifiCorp Capital I’s Prospectus
Supplement dated 6th June, 1996. 

  

	16.15	Lending and guarantees 

  

	(a)	Except as provided in paragraph (b) below, no member of the Group may be the creditor in respect of any Borrowings or of any trade credit extended to any of its customers.


  

	(b)	Paragraph (a) does not apply to: 

  

	 	(i)	trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of its trading activities; 

  

	 	(ii)	any loan by one member of the Group to another member of the Group; or 

  

	 	(iii)	any other exceptions agreed by the Majority Banks. 

  

	16.16	Change of business 

  
 The Company must ensure that no substantial change is made to the general nature of the business of the Company or the Group from that carried on as at
the date of this Agreement. 
  

 39 









	16.17	Rating change 

  
 The Company shall provide to the Agent, promptly upon becoming aware of it, written notice of any change in (or withdrawal of) the long term credit rating
assigned to it by S&P or Moody’s or such other rating agency as may be approved from time to time for this purpose by the Majority Banks. 
  

	16.18	SP Energy Management 

  
 The Company shall procure that SP Energy Management will conduct itself in its business in accordance with the standards of a reasonable and prudent
operator. 
  
 For the purposes of this Clause, reasonable and
prudent operator means a person seeking to perform its contractual obligations and in so doing and in the general conduct of its undertaking exercising that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily
be expected from a skilled and experienced operator in compliance with all applicable laws engaged in the same type of undertaking in the same jurisdictions and under the same or similar circumstances and conditions. 
  

	16.19	Use of websites 

  

	(a)	Except as provided below, the Company may deliver any information under this Agreement to a Bank by posting it on to an electronic website if: 

  

	 	(i)	the Agent and the Bank agree; 

  

	 	(ii)	the Company and the Agent designate an electronic website for this purpose; 

  

	 	(iii)	the Company notifies the Agent of the address of and password for the website; and 

  

	 	(iv)	the information posted is in a format agreed between the Company and the Agent. 

  
 The Agent must supply each relevant Bank with the address of and password for the website. 
  

	(b)	Notwithstanding the above, the Company must supply to the Agent in paper form a copy of any information posted on the website together with sufficient copies for:


  

	 	(i)	any Bank not agreeing to receive via the website; and 

  

	 	(ii)	within ten Business Days of request any other Bank, if that Bank so requests. 

  


	(c)	The Company must promptly upon becoming aware of its occurrence, notify the Agent if: 

  

	 	(i)	the website cannot be accessed; 

  

	 	(ii)	the website or any information on the website is infected by an electronic virus or similar software; 

  

	 	(iii)	the password for the website is changed; or 

  

	 	(iv)	any information to be supplied under this Agreement is posted on the website or amended after being posted. 

  

 40 








 If the circumstances in sub-paragraphs (i) or (ii) above occur, the Company must supply any information
required under this Agreement in paper form until the Agent is satisfied that the circumstances giving rise to the notification are not longer continuing. 
  

	16.20	Know Your Customer Requirements 

  

	(a)	The Company must promptly on the request of any Finance Party supply to that Finance Party any documentation or other evidence which is reasonably requested by that Finance Party
(whether for itself, on behalf of any Finance Party or any prospective new Bank) to enable a Finance Party or prospective new Bank to carry out and be satisfied with the results of all know your customer requirements. 

  

	(b)	Each Bank must promptly on the request of the Agent supply to the Agent any documentation or other evidence which is reasonably required by the Agent to carry out and be satisfied
with the results of all know your customer requirements. 

  

	17.	DEFAULT 

  

	17.1	Events of Default 

  
 Each of the events set out in Clauses 17.2 (Non-payment) to 17.18 (Material adverse change) (inclusive) is an Event of Default (whether or not caused by
any reason whatsoever outside the control of the Company or any other person). 
  

	17.2	Non-payment 

  
 The Company does not pay any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable,
unless: 
  

	 	(a)	its failure to pay is caused by administrative or technical error; and 

  

	 	(b)	payment is made within three Business Days of its due date. 

  

	17.3	Breach of other obligations 

  
 The Company does not comply with any provision of the Finance Documents (other than those referred to in Clause 17.2 (Non-payment)) and such failure (if
capable of remedy before the expiry of such period) continues unremedied for a period of 30 days from the date on which the Agent gives notice to the Company requiring the same to be remedied. 
  

	17.4	Misrepresentation 

  
 A representation, warranty or statement made or repeated by the Company in or in connection with any Finance Document or in any document delivered by or
on behalf of the Company under or in connection with any Finance Document is incorrect in any material respect when made or deemed to be made or repeated. 
  

	17.5	Cross-default 

  

	(a)	Any Borrowings (other than Hedging Liabilities) of a member of the Group are not paid when due after the expiry of any applicable grace period provided in the original documentation
therefor; or 

  

 41 









	(b)	any Hedging Liabilities of a member of the Group are not paid within a period of five Business Days of the due date or any applicable grace period provided in the original
documentation therefor, whichever is the shorter; or 

  

	(c)	any Borrowings of a member of the Group become (or become capable of being declared) prematurely due and payable or are placed (or become capable of being placed) on demand in each
case as a result of an event of default or termination event (howsoever described) under the document relating to those Borrowings; or 

  

	(d)	any Security Interest securing Borrowings over any asset of a member of the Group becomes enforceable and the holder thereof shall commence proceedings or appoint a receiver,
manager or similar officer to take steps to enforce the same, 

  
 except that this Clause 17.5 shall not apply to: 
  

	 	(i)	Project Finance Borrowings; or 

  

	 	(ii)	Borrowings: 

  

	 	(A)	liability for payment of which is being contested in good faith by appropriate proceedings provided that if the Company’s auditors determine that the amount in dispute should
be provided for in the relevant accounts, that the auditors verify that such amount is fully provided against; or 

  

	 	(B)	the aggregate principal amount of which (taking into account, in the case of Hedging Liabilities, the net payment due to the relevant counterparties as the principal amount for this
purpose) is US$30,000,000 or less or its equivalent in other currencies. 

  

	17.6	Insolvency 

  

	(a)	The Company or a Principal Subsidiary is, or is deemed for the purposes of any law to be, unable to pay its debts (within the meaning of Section 123(1) or, in the case of the
Company only, 123(2) of the Insolvency Act 1986 but, for the purposes of this Clause 17.6, Section 123(1)(a) of the Insolvency Act 1986 shall have effect as if for “£750” there was substituted “£250,000” or such
higher figure as the Majority Banks may from time to time agree). 

  

	(b)	The Company or a Principal Subsidiary suspends making payments on all or any class of its debts or announces an intention to do so, or a moratorium is declared in respect of any of
its indebtedness. 

  

	(c)	The Company or a Principal Subsidiary by reason of financial difficulties, begins negotiations with one or more of its creditors with a view to the readjustment or rescheduling of
any of its indebtedness. 

  

	(d)	Unless the Agent (acting on the instructions of the Majority Banks) confirms otherwise, if a moratorium occurs in respect of the Company or a Principal Subsidiary, the ending of the
moratorium will not remedy any Event of Default caused by the moratorium. 

  

	17.7	Administration 

  

	(a)	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for, to
petition for or to file documents with a court or any registrar for its administration or any such resolution is passed; or 

  

 42 









	(b)	the directors, shareholders or other officers of the Company or any Principal Subsidiary request an application for an administrative order, or give notice of their intention to
make such a request; or 

  

	(c)	any person presents an application to, or files documents with, a court or any registrar for an administration order in relation to the Company or any Principal Subsidiary and
either (i) the Company or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition or (ii) it does so apply but such petition is
not refused by such court within 60 days after such application for the refusal of such petition. 

  

	17.8	Compositions etc 

  
 The Company or any Principal Subsidiary has any voluntary arrangement proposed in relation to it under Section 1 of the Insolvency Act 1986 or any step is
taken with a view to a moratorium, composition, scheme of arrangement, compromise or other arrangement involving the Company or such Principal Subsidiary (as the case may be) and their respective creditors generally (other than for the purposes of
reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks). 
  

	17.9	Winding up 

  

	(a)	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for (or
to petition for or to file documents with a court or any registrar for) its winding up or dissolution (other than in connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing
by the Majority Banks); or 

  

	(b)	the Company or any Principal Subsidiary passes any resolution for its winding up or dissolution other than a resolution previously approved in writing by the Majority Banks (other
than in connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks); or 

  

	(c)	any person presents a petition, or files documents with a court or any registrar for the winding up or dissolution of the Company or any Principal Subsidiary is presented to the
court and either (i) the Company or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition, or (ii) it does so apply but such
petition is not refused by such court within 60 days after such application for the refusal of such petition; or 

  

	(d)	the Company or any Principal Subsidiary becomes subject to a winding up or dissolution order. 

  

	17.10	Appointment of receivers and managers 

  

	(a)	Any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like is appointed in respect of the Company or
any Principal Subsidiary or any material part of its assets or undertaking and (in the case of a receiver only) such appointment continues for more than 30 days; or 

  

 43 









	(b)	the directors, shareholders (acting by the requisite majority thereof, if any requisite majority is applicable) or other officers of the Company or any Principal Subsidiary request
the appointment, or give notice of their intention to appoint a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like. 

  

	17.11	Creditors’ process  

  
 Any attachment, sequestration, distress, execution or diligence (whether on the dependence or otherwise) affects any material asset of the Company or any
Principal Subsidiary and is not discharged within 21 days. 
  

	17.12	Analogous proceedings 

  
 There occurs, in relation to the Company or any Principal Subsidiary, any event anywhere which corresponds to any of those mentioned in Clauses 17.6
(Insolvency) to 17.11 (Creditors’ process) (inclusive). 
  

	17.13	Unlawfulness 

  
 It is or becomes unlawful for the Company to perform any of its obligations under the Finance Documents. 
  

	17.14	Revocation and Modification of Licences 

  
 Any Licence is: 
  

	 	(a)	revoked, surrendered, terminated or disposed of (or any notice of revocation or termination is issued by the relevant regulatory authority); or 

  

	 	(b)	modified, 

  
 in any manner or circumstances which would have a material adverse effect on the ability of the Company to perform any of its obligations under this Agreement. 
  

	17.15	Cessation of business 

  
 The Company ceases to carry on all or a substantial part of its business. 
  

	17.16	Change of control of a Mandatory Subsidiary 

  
 A Mandatory Subsidiary ceases to be a wholly owned Subsidiary of the Company. 
  

	17.17	Repudiation 

  
 The Company repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 
  

	17.18	Material adverse change 

  
 Any event or circumstance occurs which has a Material Adverse Effect. 
  

 44 









	17.19	Acceleration 

  
 On and at any time after the occurrence of an Event of Default while such event is continuing the Agent may, and shall if so directed by the Majority
Banks, by notice to the Company: 
  

	 	(a)	cancel the Total Commitments; and/or 

  

	 	(b)	demand that all of the Loans, together with accrued interest, and all other amounts accrued under this Agreement be immediately due and payable, whereupon they shall become
immediately due and payable; and/or 

  

	 	(c)	demand that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand. 

  

	18.	THE AGENT AND THE MANDATED LEAD ARRANGERS 

  

	18.1	Appointment and duties of the Agent 

  
 Each Finance Party (other than the Agent) irrevocably appoints the Agent to act as its agent under and in connection with the Finance Documents, and
irrevocably authorises the Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental
rights, powers and discretions. The Agent shall have only those duties which are expressly specified in this Agreement. Those duties are solely of a mechanical and administrative nature. 
  

	18.2	Role of the Mandated Lead Arrangers 

  
 Except as otherwise provided in this Agreement, each Mandated Lead Arranger has no obligations of any kind to any other Party under or in connection with
any Finance Document.  
  

	18.3	Relationship 

  
 The relationship between the Agent and the other Finance Parties is that of agent and principal only. Nothing in this Agreement constitutes the Agent as
trustee or fiduciary for any other Party or any other person and the Agent need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys.  
  

	18.4	Majority Banks’ directions 

  
 The Agent will be fully protected if it acts in accordance with the instructions of the Majority Banks in connection with the exercise of any right, power
or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Banks will be binding on all the Banks. In the absence of such instructions the Agent may act as it considers to be in the
best interests of all the Banks.  
  

	18.5	Delegation 

  
 The Agent may act under the Finance Documents through its personnel and agents.  
  

	18.6	Responsibility for documentation 

  
 Neither the Agent nor a Mandated Lead Arranger is responsible to any other Party for: 
  

	 	(a)	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

 45 









	 	(b)	the collectability of amounts payable under any Finance Document; or 

  

	 	(c)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document. 

  

	18.7	Default 

  

	(a)	The Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Agent will not be deemed to have knowledge of the occurrence of a Default. However,
if the Agent receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Banks. 

  

	(b)	The Agent may require the receipt of security satisfactory to it whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in
taking any proceedings or action arising out of or in connection with any Finance Document before it commences these proceedings or takes that action. 

  

	18.8	Exoneration 

  

	(a)	Without limiting paragraph (b) below, the Agent will not be liable to any other Party for any action taken or not taken by it under or in connection with any Finance Document,
unless directly caused by its gross negligence or wilful misconduct. 

  

	(b)	No Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of
any kind (including negligence or wilful misconduct) by that officer, employee or agent in relation to any Finance Document. 

  

	18.9	Reliance 

  
 The Agent may: 
  

	 	(a)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

  

	 	(b)	rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify;
and 

  

	 	(c)	engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s employment and those representing a Party other than the Agent).


  

	18.10	Credit approval and appraisal 

  
 Without affecting the responsibility of the Company for information supplied by it or on their behalf in connection with any Finance Document, each Bank
confirms that it: 
  

	 	(a)	has made its own independent investigation and assessment of the financial condition and affairs of the Company and their related entities in connection with its participation in
this Agreement and has not relied exclusively on any information provided to it by the Agent or the Mandated Lead Arrangers in connection with any Finance Document; and 

  

 46 









	 	(b)	will continue to make its own independent appraisal of the creditworthiness of the Company and their related entities while any amount is or may be outstanding under the Finance
Documents or any Commitment is in force. 

  

	18.11	Information 

  

	(a)	The Agent shall promptly forward to the person concerned the original or a copy of any document which is delivered to the Agent by a Party for that person. 


 

	(b)	The Agent shall promptly supply a Bank with a copy of each document received by the Agent under Clause 4 (Conditions Precedent) upon the request and at the expense of that Bank.


  

	(c)	Except where this Agreement specifically provides otherwise, the Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party.


  

	(d)	Except as provided above, the Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Bank with any credit or other information concerning the financial condition or affairs of the Company or any related entity
of the Company whether coming into its possession or that of any of its related entities before, on or after the date of this Agreement; or 

  

	 	(ii)	unless specifically requested to do so by a Bank in accordance with this Agreement, to request any certificates or other documents from the Company. 

  

	18.12	The Agent and each Mandated Lead Arranger individually 

  

	(a)	If it is also a Bank, each of the Agent and a Mandated Lead Arranger has the same rights and powers under this Agreement as any other Bank and may exercise those rights and powers
as though it were not the Agent or a Mandated Lead Arranger. 

  

	(b)	Each of the Agent and a Mandated Lead Arranger may: 

  

	 	(i)	carry on any business with the Company or its related entities; 

  

	 	(ii)	act as agent or trustee for, or in relation to any financing involving, the Company or its related entities; and 

  

	 	(iii)	retain any profits or remuneration in connection with its activities under this Agreement or in relation to any of the foregoing. 

  
 18.13 Indemnities 
  

	(a)	Without limiting the liability of the Company under the Finance Documents, each Bank shall forthwith on demand indemnify the Agent for its proportion of any liability or loss
incurred by the Agent in any way relating to or arising out of its acting as the Agent, except to the extent that the liability or loss arises directly from the Agent’s gross negligence or wilful misconduct. 

  

	(b)	A Bank’s proportion of the liability or loss set out in paragraph (a) above is the proportion which the Original Dollar Amount of its participation in the Loans (if any) bear
to the 

  

 47 








 Original Dollar Amount of all the Loans on the date of the demand. If, however, there are no Loans
outstanding on the date of demand, then the proportion will be the proportion which its relevant Commitment bears to the Total Commitments at the date of demand or, if the Total Commitments have been cancelled, bore to the Total Commitments
immediately before being cancelled. 
  

	18.14	Compliance 

  

	(a)	The Agent may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do
anything which, in its opinion, is necessary or desirable to comply with any law or regulation of any jurisdiction. 

  

	(b)	Without limiting paragraph (a) above, the Agent need not disclose any information relating to the Company or any of its related entities if the disclosure might, in the opinion of
the Agent, constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 

  

	18.15	Resignation of Agent 

  

	(a)	Notwithstanding its irrevocable appointment, the Agent may resign by giving notice to the Banks and the Company, in which case the Agent may forthwith appoint one of its Affiliates
as successor Agent or, failing that, the Majority Banks may appoint a successor Agent. 

  

	(b)	If the appointment of a successor Agent is to be made by the Majority Banks but they have not, within 30 days after notice of resignation, appointed a successor Agent which accepts
the appointment, the retiring Agent may appoint a successor Agent. 

  

	(c)	The resignation of the retiring Agent and the appointment of any successor Agent will both become effective only upon the successor Agent notifying all the Parties that it accepts
the appointment. On giving the notification, the successor Agent will succeed to the position of the retiring Agent and the term Agent will mean the successor Agent. 

  

	(d)	The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request
for the purposes of performing its functions as the Agent under this Agreement. 

  

	(e)	Upon its resignation becoming effective, this Clause 18 shall continue to benefit the retiring Agent in respect of any action taken or not taken by it under or in connection with
the Finance Documents while it was the Agent, and, subject to paragraph (d) above, it shall have no further obligation under any Finance Document. 

  


	18.16	Banks 

  
 The Agent may treat each Bank as a Bank, entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received
notice from the Bank to the contrary by not less than five Business Days prior to the relevant payment. 
  

	18.17	Extraordinary management time and resources 

  
 In addition to the fees (if any) paid or payable to the Agent pursuant to Clause 19 (Fees), the Company shall, on demand by the Agent, reimburse it for
its own account at such reasonable daily or hourly rates as the Agent may separately agree with the Company from time to time, 
  

 48 








 the reasonable cost of utilising its management time or other resources in connection with taking all
such steps or other action which: 
  

	 	(a)	the Company requests, in connection with: 

  

	 	(i)	the granting or proposed granting of any waiver or consent under any Finance Document; or 

  

	 	(ii)	any amendment or proposed amendment to any Finance Document; or 

  

	 	(b)	the Company or the Majority Banks request(s) in connection with: 

  

	 	(i)	any breach by the Company of its obligations under any Finance Document or any investigations in respect of any such breach; or 

  

	 	(ii)	the preservation and enforcement of any of the rights of the Finance Parties under the Finance Documents; or 

  

	 	(iii)	the occurrence of a Default. 

  

	19.	FEES  

  

	19.1	Front-end fees 

  
 The Company shall pay to the Agent for the Mandated Lead Arrangers front-end fees in the amounts agreed in the relevant Fee Letter.  
  

	19.2	Commitment fee 

  

	(a)	The Company shall pay to the Agent for each Bank a commitment fee computed at the rate of 40 per cent. of the applicable Margin per annum on the undrawn, uncancelled amount of that
Bank’s Commitment during the period from the date of this Agreement up to and including the Final Maturity Date. 

  

	(b)	Accrued commitment fee is payable quarterly in arrears. Accrued commitment fee is also payable to the Agent for the relevant Bank(s) on the cancelled amount of its Commitment at the
time the cancellation takes effect. 

  

	19.3	Utilisation fee 

  

	(a)	For each day on which the outstanding principal amount of the Loans is 50.0 per cent. or more of the Total Commitments at that time, the Company shall pay a utilisation fee to the
Agent, for the account of the Banks of 0.05 per cent. per annum, on the amount of the outstanding principal amount of the Loans on that day. 

  

	(b)	The utilisation fee is payable quarterly in arrear. Accrued utilisation fee is also payable to the Agent for the account of the Banks on the date that the Commitments are cancelled
and the Loans are prepaid or repaid in full. 

  

	19.4	Agent’s fee 

  
 The Company shall pay to the Agent for its own account an agency fee in the amount and at the times agreed in the relevant Fee Letter. 
  

 49 









	19.5	VAT 

  
 Any fee referred to in this Clause 19 (Fees) is exclusive of any value added tax or any other tax which might be chargeable in connection with that fee. If any value added tax or other tax is so chargeable, it shall
be paid by the Company at the same time as it pays the relevant fee. 
  

	20.	EXPENSES 

  

	20.1	Initial and special costs 

  
 The Company shall forthwith on demand pay the Agent and each Mandated Lead Arranger the amount of all reasonable costs and expenses (including legal fees)
incurred by each of them in connection with: 
  

	 	(a)	the negotiation, preparation, printing and execution of: 

  

	 	(i)	this Agreement and any other documents referred to in this Agreement; 

  

	 	(ii)	any other Finance Document (other than a Novation Certificate) executed after the date of this Agreement; 

  

	 	(b)	any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of the Company and relating to a Finance Document or a
document referred to in any Finance Document; and 

  

	 	(c)	any other matter, not of an ordinary administrative nature, arising out of or in connection with a Finance Document. 

  

	20.2	Enforcement costs 

  
 The Company shall forthwith on demand pay to each Finance Party the amount of all reasonable costs and expenses (including legal fees) incurred by it:

  

	 	(a)	in connection with the enforcement of, or the preservation of any rights under, any Finance Document; or 

  

	 	(b)	in investigating any possible Default. 

  

	21.	STAMP DUTIES 

  
 The Company shall pay and forthwith on demand indemnify each Finance Party against any liability it incurs in respect of any stamp, registration and
similar tax which is or becomes payable in connection with the entry into, performance or enforcement of any Finance Document. 
  

	22.	INDEMNITIES 

  

	22.1	Currency indemnity 

  

	(a)	If a Finance Party receives an amount in respect of the Company’s liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order
in a currency other than the currency (the contractual currency) in which the amount is expressed to be payable under the relevant Finance Document: 

  

	 	(i)	the Company shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion; 


 

 50 









	 	(ii)	if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business, is less than the amount owed in the
contractual currency, the Company shall forthwith on demand pay to that Finance Party an amount in the contractual currency equal to the deficit; and 

  

	 	(iii)	the Company shall pay to the Finance Party concerned on demand any exchange costs and taxes payable in connection with any such conversion. 

  

	(b)	The Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.


  

	22.2	Other indemnities 

  
 The Company shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

  

	 	(a)	the occurrence of any Default; 

  

	 	(b)	the operation of Clause 2.5 (Change of Currency), 17.19 (Acceleration) or Clause 28 (Pro Rata Sharing); 

  

	 	(c)	any payment of principal or an overdue amount being received from any source otherwise than on its Repayment Date and, for the purposes of this paragraph (c), the Repayment Date of
an overdue amount is the last day of each Designated Term (as defined in Clause 8.5 (Default interest)); or 

  

	 	(d)	(other than by reason of negligence or default by a Finance Party) a Loan not being made after the Company has delivered a Request for that Loan. 

  
 The Company’s liability in each case includes any loss of margin or
other loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Loan. 
  

	23.	EVIDENCE AND CALCULATIONS 

  

	23.1	Accounts 

  
 Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate. 
  

	23.2	Certificates and determinations 

  
 Any certification or determination by a Finance Party of a rate or amount under this Agreement is, in the absence of manifest error, conclusive evidence
of the matters to which it relates. 
  

	23.3	Calculations 

  
 Interest (including any applicable Mandatory Cost) and any fees accruing under this Agreement shall accrue from day to day and are calculated on the basis
of the actual number of days elapsed and a year of 360 days or, in the case of interest payable on an amount denominated in Sterling only or where the market practice otherwise dictates, 365 days. 
  

 51 









	24.	AMENDMENTS AND WAIVERS 

  

	24.1	Procedure 

  

	(a)	Subject to Clause 24.2 (Exceptions), any term of the Finance Documents may be amended or waived with the agreement of the Company, the Majority Banks and the Agent. The Agent may
effect, on behalf of the Banks, an amendment to which they or the Majority Banks have agreed. 

  

	(b)	The Agent shall promptly notify the other Parties of any amendment or waiver effected under paragraph (a) above, and any such amendment or waiver shall be binding on all the
Parties. 

  

	24.2	Exceptions 

  
 An amendment or waiver which relates to: 
  

	 	(a)	the definition of Majority Banks in Clause 1.1; 

  

	 	(b)	an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents; 

  

	 	(c)	an increase in, or extension of, a Bank’s Commitment; 

  

	 	(d)	a term of a Finance Document which expressly requires the consent of each Bank; 

  

	 	(e)	Clause 2.4 (Nature of a Finance Party’s rights and obligations), Clause 28 (Pro Rata Sharing) or this Clause 24; or 

  

	 	(f)	a right of a Bank to assign or transfer its rights or obligations under the Finance Documents, 

  
 may not be effected without the consent of each Bank. 
  

	24.3	Waivers and remedies cumulative 

  
 The rights of each Finance Party under the Finance Documents: 
  

	 	(a)	may be exercised as often as necessary; 

  

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

  
 Delay in exercising or non-exercise of any such right is not a waiver of that right. 
  

	25.	CHANGES TO THE PARTIES 

  

	25.1	Transfers by the Company 

  
 The Company may not assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under this Agreement. 
  

 52 









	25.2	Transfers by Banks 

  

	(a)	A Bank (the Existing Bank) may at any time assign, transfer or novate any of its rights and/or obligations under this Agreement (in a minimum amount equal to US$10,000,000
or, if less with respect to a particular Bank, the balance of that Bank’s Commitment at the time of transfer) to another bank or financial institution, trust, fund or other entity which is a Qualifying Bank (the New Bank). The prior
consent of the Company is required for any such assignment, transfer or novation, unless: 

  

	 	(i)	the New Bank is another Bank or an Affiliate of a Bank; or 

  

	 	(ii)	a Default is outstanding. 

  
 However, the prior consent of the Company must not be unreasonably withheld or delayed and will be deemed to have been given if, within 21 days of receipt
by the Company of an application for consent, it has not been expressly refused. 
  

	(b)	A transfer of obligations will be effective only if either: 

  

	 	(i)	the obligations are novated in accordance with Clause 25.3 (Procedure for novations); or 

  

	 	(ii)	the New Bank confirms to the Agent and the Company that it is a Qualifying Bank and that it undertakes to be bound by the terms of this Agreement as a Bank in form and substance
satisfactory to the Agent. On the transfer becoming effective in this manner the Existing Bank shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Bank. 

  

	(c)	Nothing in this Agreement restricts the ability of a Bank to sub-contract an obligation if that Bank remains liable under this Agreement for that obligation except that no Bank may
sub-contract any such obligation if the effect of such contract would be that a person other than a Qualifying Bank has any beneficial entitlement to any interest received by it under this Agreement. 

  

	(d)	On each occasion that an Existing Bank assigns, transfers or novates any of its rights and/or obligations under this Agreement, the New Bank shall, on the date the assignment,
transfer and/or novation takes effect, pay to the Agent for its own account a fee of £1,000. 

  

	(e)	An Existing Bank is not responsible to a New Bank for: 

  

	 	(i)	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

	 	(ii)	the collectability of amounts payable under any Finance Document; 

  

	 	(iii)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document; or 

  

	 	(iv)	the financial condition of the Company. 

  

	(f)	Each New Bank confirms to the Existing Bank and the other Finance Parties that it: 

  

	 	(i)	has made its own independent investigation and assessment of the financial condition and affairs of the Company and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by the Existing Bank in connection with any Finance Document; and 

  

 53 









	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of the Company and its related entities while any amount is or may be outstanding under this Agreement or
any Commitment is in force. 

  

	(g)	Nothing in any Finance Document obliges an Existing Bank to: 

  

	 	(i)	accept a re-transfer from a New Bank of any of the rights and/or obligations assigned, transferred or novated under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Bank by reason of the non-performance by the Company of its obligations under this Agreement or otherwise. 

  

	(h)	Any reference in this Agreement to a Bank includes a New Bank, but excludes a Bank if no amount is or may be owed to or by that Bank under this Agreement and its Commitment has been
cancelled or reduced to nil. 

  

	(i)	No assignment or transfer under this Clause will be effective until the Agent has completed all know your customer requirements relating to any person that it is required to carry
out in relation to such assignment or transfer. The Agent is not obliged to execute a Novation Certificate until it has completed all know customer requirements to its satisfaction. 

  

	25.3	Procedure for novations 

  

	(a)	A novation is effected if the Existing Bank and the New Bank deliver to the Agent a Novation Certificate in the form of Schedule 5 and the Agent executes it.


  

	(b)	Each Party (other than the Existing Bank and the New Bank) irrevocably authorises the Agent to execute any duly completed Novation Certificate on its behalf.


  

	(c)	To the extent that they are expressed to be the subject of the novation in the Novation Certificate: 

  

	 	(i)	the Existing Bank and the other Parties (the existing Parties) will be released from their obligations to each other (the discharged obligations);


  

	 	(ii)	the New Bank and the existing Parties will assume obligations towards each other which differ from the discharged obligations only insofar as they are owed to or assumed by the New
Bank instead of the Existing Bank; 

  

	 	(iii)	the rights of the Existing Bank against the existing Parties and vice versa (the discharged rights) will be cancelled; and 

  

	 	(iv)	the New Bank and the existing Parties will acquire rights against each other which differ from the discharged rights only insofar as they are exercisable by or against the New Bank
instead of the Existing Bank, 

  
 all on the date
of execution of the Novation Certificate by the Agent or, if later, the date specified in the Novation Certificate. The completed Novation Certificate must be delivered to the Agent at least 5 Business Days before the date on which it is stated to
be effective or such other date agreed by the Agent. If no agreement can be reached by the Agent the novation will not be effective. 
  

 54 









	25.4	Reference Banks 

  
 If a Reference Bank (or, if a Reference Bank is not a Bank, the Bank of which it is an Affiliate) ceases to be one of the Banks, the Agent shall (in
consultation with the Company) appoint another Bank or an Affiliate of a Bank to replace that Reference Bank. 
  

	25.5	Register 

  
 The Agent shall keep a register of all the Parties and shall supply any other Party (at that Party’s expense) with a copy of the register on request.

  

	25.6	Change of Facility Office 

  
 No Bank will change its Facility Office if, at the time of the change, circumstances exist which would oblige the Company to pay that Bank any amount
under Clause 11 (Taxes) or Clause 13 (Increased Costs) which it would not have been obliged to pay if that Bank had retained the same Facility Office. 
  

	26.	DISCLOSURE OF INFORMATION 

  
 A Bank may disclose to one of its Affiliates or any person with whom it is proposing to enter, or has entered into, any kind of transfer, participation or
other agreement in relation to this Agreement: 
  

	 	(i)	a copy of any Finance Document; and 

  

	 	(ii)	any information which that Bank has acquired under or in connection with any Finance Document. 

  
 Provided that any such Affiliate or person has entered into a confidentiality undertaking substantially in the form of
Schedule 9 (Form of Confidentiality Undertaking) or in any other form agreed between the Company and the Agent. 
  

	27.	SET-OFF 

  
 A Finance Party may set off any matured obligation owed by the Company under this Agreement (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not matured) owed by that Finance Party to the Company, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may
convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Finance Party may set off in an amount estimated by it in good faith to
be the amount of that obligation. 
  

	28.	PRO RATA SHARING 

  

	28.1	Redistribution 

  
 If any amount owing by the Company under this Agreement to a Finance Party (the recovering Finance Party) is discharged by payment, set-off or any
other manner other than through the Agent in accordance with Clause 10 (Payments) (a recovery), then: 
  

	 	(a)	the recovering Finance Party shall, within three Business Days, notify details of the recovery to the Agent; 

  

 55 









	 	(b)	the Agent shall determine whether the recovery is in excess of the amount which the recovering Finance Party would have received had the recovery been received by the Agent and
distributed in accordance with Clause 10 (Payments); 

  

	 	(c)	subject to Clause 28.3 (Exception), the recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the redistribution)
equal to the excess; 

  

	 	(d)	the Agent shall treat the redistribution as if it were a payment by the Company under Clause 10 (Payments) and shall pay the redistribution to the Finance Parties (other than the
recovering Finance Party) in accordance with Clause 10.7 (Partial payments); and 

  

	 	(e)	after payment of the full redistribution, the recovering Finance Party will be subrogated to the portion of the claims paid under paragraph (d) above, and the Company will owe the
recovering Finance Party a debt which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	28.2	Reversal of redistribution 

  
 If under Clause 28.1 (Redistribution): 
  

	 	(a)	a recovering Finance Party must subsequently return a recovery, or an amount measured by reference to a recovery, to the Company; and 

  

	 	(b)	the recovering Finance Party has paid a redistribution in relation to that recovery, 

  
 each Finance Party shall, within three Business Days of demand by the recovering Finance Party through the Agent, reimburse
the recovering Finance Party all or the appropriate portion of the redistribution paid to that Finance Party. Thereupon the subrogation in Clause 28.1(e) (Redistribution) will operate in reverse to the extent of the reimbursement. 
  

	28.3	Exception 

  
 A recovering Finance Party need not pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Company in the
amount of the redistribution pursuant to Clause 28.1(e) (Redistribution). 
  

	29.	SEVERABILITY 

  
 If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 
  

	 	(a)	the legality, validity or enforceability in that jurisdiction of any other provision of the Finance Documents; or 

  

	 	(b)	the legality, validity or enforceability in other jurisdictions of that or any other provision of the Finance Documents. 

  

	30.	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy
of this Agreement. 
  

 56 









	31.	NOTICES 

  

	31.1	Giving of notices 

  
 All notices or other communications under or in connection with this Agreement shall be given in writing or by facsimile. Any such notice will be deemed
to be given as follows: 
  

	 	(a)	if in writing, when delivered; and 

  

	 	(b)	if by facsimile, when received in complete and legible form. 

  
 However, a notice given in accordance with the above but received on a non-working day or after business hours in the place of receipt will only be deemed
to be given on the next working day in that place. 
  

	31.2	Addresses for notices 

  

	(a)	The address and facsimile number of each Party (other than the Agent) for all notices under or in connection with this Agreement are: 

  

	 	(i)	that notified by that Party for this purpose to the Agent on or before it becomes a Party; or 

  

	 	(ii)	any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice. 

  

	(b)	The address and facsimile number of the Agent is: 

  
 The Royal Bank of Scotland plc 
 2.5
Devonshire Square 
 London EC2M 4BB 
  
 Facsimile number:        +44 207 615 7673 
  
 Attention:    Loans Administration 
  
 or such other as the Agent may notify to the other Parties by not less than five Business Days’ notice. 
  

	(c)	The Agent shall, promptly upon request from any Party, give to that Party the address or facsimile number of any other Party applicable at the time for the purposes of this Clause.


  

	32.	GOVERNING LAW 

  
 This Agreement is governed by English law. 
  

	33.	JURISDICTION 

  

	(a)	Each of the parties hereto irrevocably agrees, for the benefit of the Agent and the Banks, that the courts of England shall have jurisdiction to hear and determine any suit, action
or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and, for such purposes, irrevocably submits to the jurisdiction of such courts. 

  

	(b)	The Company irrevocably waives any objection which it might now or hereafter have to the courts referred to in paragraph (a) above being nominated as the forum to hear and determine


  

 57 








 any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with
this Agreement and agrees not to claim that any such court is not a convenient or appropriate forum. 
  

	(c)	The submission to the jurisdiction of the courts referred to in paragraph (a) above shall not (and shall not be construed so as to) limit the right of the Agent or the Banks to take
proceedings in any other court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 

  

	34.	SERVICE OF PROCESS 

  
 Without prejudice to any other mode of service allowed under any relevant law, the Company: 
  

	 	(a)	irrevocably appoints its London office at 30 Cannon Street, London EC4M 6XH as its agent for service of process in relation to any proceedings before the English courts in
connection with any Finance Documents; and 

  

	 	(b)	agrees that any failure by a process agent to notify the Company of the process will not invalidate the proceedings concerned. 

  
 This Agreement has been entered into on the date stated at the beginning of this Agreement.

  

 58 








 SCHEDULE 1 
  
 ORIGINAL PARTIES 
  

			
	 Original Bank

	  	Commitments


	 	  	(US$)
		
	 The Bank of Tokyo-Mitsubishi, Ltd.
	  	19,000,000
	 Barclays Bank PLC
	  	19,000,000
	 Commerzbank Aktiengesellschaft, London Branch
	  	19,000,000
	 HSBC Bank plc
	  	19,000,000
	 JPMorgan Chase Bank
	  	19,000,000
	 The Royal Bank of Scotland plc
	  	19,000,000
	 ABN AMRO Bank N.V.
	  	14,500,000
	 Allied Irish Banks, p.l.c.
	  	14,500,000
	 Bank of America, N.A.
	  	14,500,000
	 BBVA Ireland plc
	  	14,500,000
	 BNP Paribas, London Branch
	  	14,500,000
	 Calyon, London Branch
	  	14,500,000
	 CDC Finance - CDC IXIS
	  	14,500,000
	 Citibank, N.A.
	  	14,500,000
	 Credit Suisse First Boston
	  	14,500,000
	 Deutsche Bank AG London
	  	14,500,000
	 Fortis Bank S.A./N.V.
	  	14,500,000
	 ING Bank N.V., London Branch
	  	14,500,000
	 Merrill Lynch Bank USA
	  	14,500,000
	 Mizuho Corporate Bank, Ltd.
	  	14,500,000
	 Morgan Stanley Dean Witter Bank Limited
	  	14,500,000
	 National Australia Bank Limited (A.B.N. 12 004 044 937)
	  	14,500,000
	 TD Bank Europe Limited
	  	14,500,000
	 UBS AG, London Branch
	  	14,500,000
	 	  	

	 Total
	  	375,000,000

  

 59 








 SCHEDULE 2 
  
 CONDITIONS PRECEDENT DOCUMENTS 
  

	1.	A copy of the memorandum and articles of association, certificate of incorporation and certificate of incorporation on change of name (if any) of the Company or a certificate of an
authorised signatory of the Company confirming that the copy of those documents previously delivered to the Agent in connection with the Existing Facility Agreement is still correct, complete and in full force and effect as at a date no earlier than
the date of this Agreement. 

  

	2.	A copy of a resolution of the Group Finance Committee of the Company: 

  

	 	(i)	approving the terms of, and the transactions contemplated by the Finance Documents resolving that it execute the Finance Documents to which it is a party and any related and/or
ancillary documents; 

  

	 	(ii)	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in connection with
the Finance Documents. 

  

	3.	A copy of a resolution of the board of directors of the Company appointing the Group Finance Committee referred to in paragraph 2 above. 

  

	4.	A certificate of a director of the Company certifying that the utilisation of the Facility in full would not cause any internal borrowing limit binding on the Company to be
exceeded. 

  

	5.	A certificate of an authorised signatory of the Company certifying: 

  

	 	(a)	that each copy document specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement; and


  

	 	(b)	the specimen signatures of its authorised signatories. 

  

	6.	A legal opinion of Allen & Overy LLP, legal advisers to the Agent, addressed to the Finance Parties substantially in the form of Schedule 6. 

  

	7.	A legal opinion of Maclay Murray & Spens, legal advisers to the Agent in Scotland, addressed to the Finance Parties substantially in the form of Schedule 7.


  
 Miscellaneous 
  

	8.	A certificate of an authorised signatory of the Company confirming: 

  

	 	(a)	that the copy of each Licence held by a member of the Group other than PacifiCorp or its Subsidiaries previously delivered to the Agent in connection with the Existing Facility
Agreement is still correct, complete and in full force and effect as at a date no earlier than the date of this Agreement; and 

  

	 	(b)	that no new Licences have been issued to any member of the Group other than PacifiCorp or its Subsidiaries. 

  

 60 









	9.	Evidence that Existing Facility A has been cancelled and any outstandings under Existing Facility A have been or will on the first Utilisation Date be repaid in full.


  

	10.	A copy of the Original Group Accounts. 

  

	11.	Evidence that all fees and expenses then due and payable from the Company under the Finance Documents have been or will be paid by the first Utilisation Date.


  

	12.	Evidence that the process agent referred to in Clause 34 (Service of Process) has accepted the appointment. 

  

	13.	A copy of any other authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance
of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document and which, in either case, is notified to the Company prior to the execution of this Agreement. 


 

	14.	An executed copy of a side letter to the Existing Facility Agreement which amends the definition of Operating Profit, the mandatory prepayment provisions and the provision relating
to restrictions on borrowings so they are each consistent with the provisions contained in this Agreement. 

  

 61 








 SCHEDULE 3 
  
 CALCULATION OF THE MANDATORY COST 
  
 General 
  
 The Mandatory Cost is the weighted average of the rates for each Bank calculated below by the Agent on the first day of a Term. The Agent must distribute
each amount of Mandatory Cost among the Banks on the basis of the rate for each Bank. 
  

	1.	For a Bank lending from a Facility Office in the U.K.  

  

	(a)	The relevant rate for a Bank lending from a Facility Office in the U.K. is calculated in accordance with the following formulae: 

  
 for a Loan in Sterling: 
  

			
	 AB + C(B –D) + E x 0.01

	 	 per cent. per annum

	100 – (A + C)	 

  
 for any other Loan:

  

			
	 E x 0.01

	 	 per cent. per annum

	300	 

  
 where on the day of
application of the formula: 
  

	 	A	is the percentage of that Bank’s eligible liabilities (in excess of any stated minimum) which the Bank of England requires it to hold on a non-interest-bearing deposit account
in accordance with its cash ratio requirements; 

  

	 	B	is LIBOR for that Term; 

  

	 	C	is the percentage of that Bank’s eligible liabilities which the Bank of England requires it to place as a special deposit; 

  

	 	D	is the interest rate per annum allowed by the Bank of England on a special deposit; and 

  

	 	E	is calculated by the Agent as being the average of the rates of charge supplied by the Reference Banks to the Agent under paragraph (d) below and expressed in pounds per £1
million. 

  

	(b)	For the purposes of this paragraph 2: 

  

	 	(i)	eligible liabilities and special deposit have the meanings given to them at the time of application of the formula by the Bank of England; 

  

	 	(ii)	fees rules means the then current rules on periodic fees in the Supervision Manual of the FSA Handbook; and 

  

	 	(iii)	tariff base has the meaning given to it in the fees rules. 

  

 62 









	


					
	(c)	  	(i)	 	In the application of the formulae, A, B, C and D are included as figures and not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated as 0.5 x 15. A negative result obtained by
subtracting D from B is taken as zero.
			
	 	  	(ii)	 	Each rate calculated in accordance with a formula is, if necessary, rounded upward to four decimal places.
			
	(d)	  	(i)	 	Each Reference Bank must supply to the Agent the rate of charge payable by that Reference Bank to the Financial Services Authority under the fees rules (calculated by that Reference Bank as
being the average of the rates of charge within fee-block Category A1 (Deposit acceptors) applicable to that Reference Bank but, for this purpose, applying any applicable discount and ignoring any minimum fee required under the fees rules) and
expressed in pounds per £1 million of the tariff base of that Reference Bank.
			
	 	  	(ii)	 	Each Reference Bank must promptly notify the Agent of any change to the rate of charge.
			
	(e)	  	(i)	 	Each Bank and each Reference Bank must supply to the Agent the information required by it to make a calculation of the rate for that Bank or Reference Bank. The Agent may assume that this
information is correct in all respects.
			
	 	  	(ii)	 	If a Bank or a Reference Bank fails to do so, the Agent may assume that the Bank’s or that Reference Bank’s obligations in respect of cash ratio deposits, special deposits and the
fees rules are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the U.K.
			
	 	  	(iii)	 	The Agent has no liability to any Party if its calculation over or under compensates any Bank.

  

	2.	For a Bank lending from a Facility Office in a Participating Member State  

  

	(a)	The relevant rate for a Bank lending from a Facility Office in a Participating Member State is the percentage rate per annum notified by that Bank to the Agent as its cost of
complying with the minimum reserve requirements of the European Central Bank. 

  

	(b)	If a Bank fails to specify a rate under paragraph (a) above, the Agent will assume that the Bank has not incurred any such cost. 

  

	3.	Changes  

  
 The Agent may, after consultation with the Company and the Banks, notify all the Parties of any amendment to this Schedule which is required to reflect:

  

	 	(a)	any change in law or regulation; or 

  

	 	(b)	any requirement imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any successor authority). 


 
 Any notification will be, in the absence of manifest error, conclusive
and binding on all the Parties. 
  

 63 








 SCHEDULE 4 
  
 FORM OF REQUEST 
  

	To:	THE ROYAL BANK OF SCOTLAND PLC as Agent 

  

	From:	SCOTTISH POWER PLC 

  
 Date: [                    ] 
  
 Scottish Power plc-US$375,000,000 Revolving Credit Agreement 
 dated [l], 2004 
  

	1.	We wish to borrow a Loan as follows: 

  

	 	(a)	Utilisation Date: [                    ] 

  

	 	(b)	Original Dollar Amount: US$[                    ] 

  

	 	(c)	Currency: [                    ] 

  

	 	(d)	Term: [                    ] 

  

	 	(e)	Payment/delivery instructions: [                    ] 


	 	


	2.	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Request. 

  

	3.	We confirm that the Loan will be used in accordance with Clause 3 (Purpose). 

  

	4.	We confirm that the borrowing of the above referenced Loan will not cause any borrowing limit binding on Scottish Power plc to be exceeded. 

  

	
	 By:

	
	 SCOTTISH POWER PLC

	 Authorised Signatory


  

 64 








 SCHEDULE 5 
  
 FORM OF NOVATION CERTIFICATE 
  

	To:	THE ROYAL BANK OF SCOTLAND PLC as Agent 

  

	From:	[THE EXISTING BANK] and [THE NEW BANK]         Date:
[                    ] 

  
 Scottish Power plc - US$375,000,000 Revolving Credit Agreement 
 dated [l], 2004 
  
 We refer to Clause 25.3 (Procedure for novations). 
  


	1.	We [                    ] (the Existing Bank) and
[                    ] (the New Bank) agree to the Existing Bank and the New Bank novating all the Existing Bank’s rights and obligations
referred to in the Schedule in accordance with Clause 25.3 (Procedure for novations). 

  

	2.	The specified date for the purposes of 25.3(c) is [date of novation]. 

  

	3.	The Facility Office and address for notices of the New Bank for the purposes of Clause 31.2 (Addresses for notices) are set out in the Schedule. 

  

	4.	This Novation Certificate is governed by English law. 

  
 THE SCHEDULE 
  
 Rights and obligations to be novated 
  
 [Details of the rights and obligations of the Existing Bank to be novated]. 
  
 [New Bank] 
  
 [Facility Office Address
for notices] 
  

					
	[Existing Bank]	 	[New Bank]	 	THE ROYAL BANK OF SCOTLAND PLC
			
	By:	 	By:	 	By:
			
	Date:	 	Date:	 	Date:

  
  

 65 








 SCHEDULE 6 
  
 FORM OF LEGAL OPINION OF ALLEN & OVERY LLP 
  

	To:	The Finance Parties named as original parties 

 to the
Credit Agreement (as defined below). 
  
 , 2004 
  
 Dear Sirs, 
  
 Scottish Power plc (the Company) - US$375,000,000 Revolving Credit Agreement dated
[                    ], 2004 (the Credit Agreement) 
  
 We have acted as legal advisers in England to The Royal Bank of Scotland plc (the Agent) in connection with a Credit Agreement
dated [                ], 2004 (the Credit Agreement) made between among others, the Company as borrower, the Banks (as defined therein) and the Agent.

  
 Subject to the qualifications set out below and to any matters not disclosed
to us, we are of the opinion that, so far as the present laws of England are concerned: 
  

	(A)	Legal validity The Credit Agreement constitutes legally binding, valid and enforceable obligations of the Company. 

  

	(B)	Non-violation The execution, delivery and performance by the Company of the Credit Agreement will not violate any provision of any English law applicable to companies
generally. 

  

	(C)	Stamp duties No stamp or registration duty or similar taxes or charges are payable in the United Kingdom in respect of the execution or delivery of the Credit Agreement.


  

	(D)	Registrations It is not necessary to file, register or record the Credit Agreement in any public office or elsewhere in England in order for the Credit Agreement to
constitute legally binding, valid and enforceable obligations of the Company. 

  

	(E)	Consents To the extent that the Company holds authorisations or exemptions of any governmental, judicial or public body or authority in England and Wales under the
Electricity Act, no further authorisations or exemptions of any governmental, judicial or public body or authority in England and Wales under the Electricity Act are required as a condition to the execution by the Company of the Credit Agreement or
the performance by the Company of its obligations thereunder or the validity or enforceability of the Credit Agreement. 

  
 The qualifications to which this opinion is subject are as follows: 
  

	(i)	We assume the Credit Agreement has been duly authorised and entered into by each party to it. 

  

	(ii)	This opinion is subject to all insolvency and other laws affecting the rights of creditors generally. 

  

	(iii)	We assume that no foreign law affects the conclusions stated above. We assume, in particular, that, so far as the laws of Scotland are concerned, the Credit Agreement constitutes


  

 66 








 a legal, valid, binding and enforceable obligation of the Company. In this regard we have relied on
copies of the legal opinion referred to in paragraph 6 of Schedule 2 to the Credit Agreement. 
  

	(iv)	The term “enforceable” means that a document is of a type and form enforced by the English courts. It does not mean that each obligation will be enforced in accordance
with its terms. Certain rights and obligations of the Company may be qualified by the non-conclusivity of certificates, doctrines of good faith and fair conduct, the availability of equitable remedies and other matters, but in our view these
qualifications would not defeat your legitimate expectations in any material respect. 

  

	(v)	On 20th November, 2001 the Gas and Electricity
Markets Authority (the Authority) granted SP Transmission Limited (the Licensee) a consent under Special Condition S of the Licensee’s transmission licence (the Consent) in relation to certain cross-default obligations
contained in the facility agreement of 5th June, 2001 between Scottish Power UK plc, Royal Bank of Scotland plc (as
agent) and Royal Bank of Scotland plc and others (as lenders) (the June 2001 Facility). Under the terms of the Consent, the Licensee was required to obtain certain undertakings from the Company, including an undertaking not to incur
borrowings prohibited by the June 2001 Facility. We assume that the undertakings granted by the Company to the Licensee pursuant to the Consent complied with the Consent and have ceased to have effect by virtue of the fact that the June 2001
Facility has been terminated and has not been renegotiated. 

  

	(vi)	In relation to the Company’s obligations to procure that members of the Company’s Group comply with the undertakings set out at clauses 16.12 (Financial covenants) and
16.13 (Restriction on Borrowings of UK Subsidiaries) of the Credit Agreement (the clause 16 obligations), it should be noted that the Authority may, in certain circumstances, in exercise of its regulatory powers, require the Licensee and
other Group licence-holding companies, among other things, to incur capital expenditure so as to ensure compliance with their licence and/or statutory obligations under the Electricity Act, and that, to the extent that a licence-holding company
might need to incur debt in order to comply with such licence and/or statutory obligations, the clause 16 obligations may not be enforceable. 

  

	(vii)	We reviewed the Licences issued to the Group by the Authority for the purposes of our opinion dated 10th December, 2003. For the purpose of the opinion set out in paragraph (E) above and in accordance with our instructions, we have relied on a copy of the
certificate referred to in paragraph 7 of Schedule 2 to the Credit Agreement which confirms there has been no change to those Licences from those previously delivered to us. 

  
 This opinion is given for your sole benefit and may not be relied upon by or disclosed to
any other person, other than as required by law. 
  
 Yours faithfully, 

 

 67 








 SCHEDULE 7 
  
 FORM OF LEGAL OPINION OF MACLAY MURRAY & SPENS 
  

	(1)	The Royal Bank of Scotland plc 

 135 Bishopsgate

 London 
 EC2M 3UR 

(as Agent for the Finance Parties) (as such 
 terms are defined in the Facility Agreement 
 which is defined below) 
  
 and 
  

	(2)	Each of the Finance Parties (as defined in the 

 Facility
Agreement which is defined below) 
  
 Dear Sirs, 
  
 You have asked for our opinion in connection with an agreement dated
[    ] 2004 between Scottish Power plc as borrower (the “Company”), J.P. Morgan plc and The Royal Bank of Scotland plc as Mandated Lead Arrangers, the Original Banks (as defined therein) and the Agent (the
“Facility Agreement”). 
  
 Unless otherwise defined in this
opinion, words and expressions defined in the Facility Agreement shall bear the same meanings in this opinion. 
  
 For the purposes of this opinion, we have examined copies of and base our opinion on the following documents: 
  

	(a)	a certified copy of the Facility Agreement; 

  

	(b)	a certified copy of the Memorandum and Articles of Association of the Company; 

  

	(c)	an online report relating to the Company obtained from the Registrar of Companies in Edinburgh on [        ] 2004 and updated as at
[         ] 2004 (the “Company Search”); 

  

	(d)	a search of the Companies Section of the Register of Insolvencies dated
[                    ] 2004 (the “Insolvency Search”); 

  

	(e)	a certified copy of the minutes of a meeting of the [treasury committee] of the board of directors of the Company held on
[                    ] 2004 (the “Directors’ Minutes”); 

  

	(f)	a certificate dated [                     ] 2004 of two directors of the Company
confirming that the utilisation by the Company of the Facility (the “Director Certificate”) in full would not cause any internal borrowing limit binding on the Company to be exceeded and that the Company is not unable to pay its
debts within the meaning of section 123 of the Insolvency Act 1986; and 

  

	(g)	a certificate dated [                     ] 2004 of an authorised signatory of
the Company (the “Authorised Signatory Certificate”) certifying that each of the items in paragraphs (b) and (e) is correct, complete and in full force and certifying the specimen signatures of the Company’s authorised
signatories. The Director Certificate and Authorised Signatory Certificate are herein together referred to as “the Certificates”). 

  

 68 








 We have not made any other enquiries concerning the Company and in particular we have not concerned ourselves with
investigating or verifying any matters of fact or opinion (whether set out in any of the documents referred to above or elsewhere) other than as expressly stated herein. 
  
 We have assumed for the purposes of this opinion: 
  

	(i)	the capacity, power and authority of each of the Mandated Lead Arrangers, the Original Banks and the Agent to enter into and perform their respective obligations under the Facility
Agreement and the due execution and delivery of the Facility Agreement by each of the Mandated Lead Arrangers, the Original Banks and the Agent; 

  

	(ii)	that the Facility Agreement has been signed by [                 ] on behalf of the Company and that
the Facility Agreement has been duly delivered; 

  

	(iii)	the conformity to original documents of all documents supplied to us as photocopies, specimen or facsimile copies; 

  

	(iv)	that each of the statements contained in the Certificates (on which we have relied without further inquiry) is true and correct as at the date hereof; 

  

	(v)	that the meeting of the [treasury committee] of the board of directors of the Company held on [             ] 2004 was
duly convened and held; 

  

	(vi)	that the meeting of the board of directors held on [            ] 2004 duly delegated authority to and confirmed the
authority of the treasury committee in relation to matters such as consideration of the Facility Agreement pursuant to Article 114 of the Articles of Association of the Company; 

  

	(vii)	that the information disclosed by the Company Search was accurate in all respects and that such Search did not fail to disclose any material information which had been delivered for
registration but which did not appear on the online report supplied by the Companies Registry in Edinburgh; 

  

	(viii)	that the Insolvency Search is complete and accurate in all respects and does not fail to disclose any material information; 

  

	(ix)	the Company has not passed a voluntary winding-up resolution, no petition has been presented or order made by the Court for the winding up, dissolution or administration of the
Company and no receiver, trustee, administrator or similar official has been appointed in relation to the Company or any of its assets or revenues in each case which is not ascertainable from the Company Search and the Insolvency Search;


  

	(x)	that the Facility Agreement constitutes legal, valid and binding obligations of the parties thereto under English law to which it is expressed to be subject and that the performance
of the obligations thereunder is not illegal or unenforceable by virtue of the law of any jurisdiction (other than Scotland) in which they are to be performed; 

  

	(xi)	that the execution and delivery of the Facility Agreement by the Company and the performance of its obligations thereunder is in the interests of the Company and that the Facility
Agreement has been entered into for bona fide commercial reasons and on arms length terms by each of the parties thereto; and 

  

 69 









	(xii)	that the Company holds all authorisation and exemptions from any governmental, judicial or public authority in Scotland required for the execution of the Facility Agreement and the
performance by the Company of its obligations thereunder and the validity and enforceability of the Facility Agreement. 

  
 We have not made any investigation of and do not express any opinion as to the laws of any jurisdiction outside Scotland and this opinion relates only to the laws of
Scotland as they exist at the date hereof. 
  
 Based upon and subject to the
foregoing and subject to the reservations hereinafter referred to and to any matters not disclosed to us, we are of the opinion that: 
  

	1.	The Company is a limited liability company duly incorporated under the laws of Scotland and has full corporate power and authority to execute, deliver and perform its obligations
under the Facility Agreement. 

  

	2.	The execution and delivery by the Company of the Facility Agreement and the performance of its obligations thereunder have been duly authorised by all requisite corporate action on
its part. 

  

	3.	The obligations of the Company under the Facility Agreement are legal, valid and binding obligations of the Company under the law of Scotland and would be so treated in the Courts
of Scotland. 

  

	4.	The entry into and performance of the Facility Agreement by the Company and the transactions and matters to be implemented thereunder do not violate (i) Scottish Law or (ii) the
Memorandum and Articles of Association of the Company. 

  

	5.	It is not necessary to file, register or record the Facility Agreement with any court or authority in Scotland and (to the extent that the Company already holds all authorisations
or exemptions of any governmental, judicial or public body or authority in Scotland required for the execution of the Facility Agreement, the performance by the Company of its obligations thereunder or the validity or enforceability of the Facility
Agreement), no other authorisations or exemptions of any governmental, judicial or public body or authority in Scotland are required for the execution of the Facility Agreement, the performance by the Company of its obligations thereunder or the
validity or enforceability of the Facility Agreement. 

  

	6.	The claims of the Finance Parties under the Facility Agreement will rank at least pari passu with the claims of all other unsecured and unsubordinated creditors of the Company
except for claims in respect of preferential debts (as defined in Schedule 6 of the Insolvency Act 1986) 

  

	7.	No stamp, registration or other similar taxes or charges are payable in Scotland with respect to the execution or delivery of the Facility Agreement. 

  

	8.	The choice of English law to govern the Facility Agreement is valid and effective under the private international law of Scotland. Subject to the usual exceptions affecting such
matters as procedure, the availability of remedies and any provision which is repugnant to the law of Scotland, the law of England will accordingly be applied by the Courts of Scotland if any dispute arising from or contractual claim connected with
the Facility Agreement comes under their jurisdiction. A judgment rendered against the Company by a competent court in England and registered in Scotland pursuant to the provisions of the Civil Jurisdiction and Judgments Act 1982 will be enforceable
by the Scottish Courts. 

  

 70 









	9.	The submission by the Company to the jurisdiction of the courts of England is valid and binding on the Company. 

  

	10	Neither the Company Search nor the Insolvency Search show that the Company is in liquidation. 

  
 The foregoing opinion is subject to the following qualifications: 
  

	(a)	We do not express any view on the particular remedies available on enforcement, such as specific implement or interdict, which are discretionary remedies. 


 

	(b)	The enforcement of the Facility Agreement may be limited by applicable laws relating to prescription, limitation, bankruptcy, liquidation, receivership, administration, insolvency
or other laws relating to creditors’ rights generally or by the application of rules of equity or public policy. 

  

	(c)	A Scottish court may refuse to give effect to any provisions of the Facility Agreement providing for the payment of legal costs and other costs, charges and expenses in respect of
unsuccessful litigation brought before such court or where that court has itself made an order for costs. 

  

	(d)	Any provision contained in the Facility Agreement to the effect that a calculation and/or certification will be conclusive and binding may not be effective if such calculation or
certification is fraudulent or erroneous on its face and will not necessarily prevent judicial enquiry into the merit of any claim under the relative document. 

  

	(e)	Any provision in the Facility Agreement relating to default interest would be unenforceable if it were held to constitute a penalty and not a genuine and reasonable pre-estimate of
the damage likely to be suffered as a result of the default in payment of the amount in question. 

  

	(f)	We express no opinion whether any provision in the Facility Agreement conferring on any party thereto a right of set off or similar right would be effective against a liquidator or
creditor. 

  

	(g)	We have not been asked to advise you in connection with the preparation of the Facility Agreement and we therefore express no opinion on the implications of the Facility Agreement
or on whether the Facility Agreement gives effect to the commercial intentions of the parties. 

  

	(h)	Any undertakings or indemnities in relation to United Kingdom stamp duties given by the Company may be void under the provisions of Section 117 of the Stamp Act 1891. However, we
refer you to our opinion at paragraph 6 above that no stamp duty is payable in Scotland with respect to the execution or delivery of the Facility Agreement by the Company. 

  

	(i)	A Scottish court may stay proceedings if concurrent proceedings are being brought elsewhere. 

  

	(j)	The effectiveness of terms exculpating a party from a liability or duty otherwise owed is limited by law. 

  

	(k)	Where any party to the Facility Agreement is vested with a discretion or may determine a matter in its opinion, that party may be required to exercise its discretion in good faith,
reasonably and for a proper purpose. 

  

 71 









	(l)	Although monetary decrees of Scottish courts would normally be expressed in Sterling, in monetary claims for foreign currency Scottish courts may (but are not obliged to) issue a
decree expressed as an order to pay the appropriate amount of foreign currency. The decree will, however, be required to be converted into Sterling for the purpose of diligence and enforcement. Indebtedness denominated in a foreign currency claimed
in the winding up of a Scottish company must be converted into Sterling for this purpose. 

  

	(m)	We express no opinion on whether any provision in the Facility Agreement purporting to impose a trust in monies received would be effective against a liquidator or creditor.


  

	(n)	Any power of attorney conferred by the Facility Agreement might not survive the winding up, administration or receivership of the Company granting such power of attorney.


  

	(o)	The Scottish courts may not give effect to any provision in the Facility Agreement which provides that in the event of any invalidity, illegality or unenforceability of any
provision of such document, the remaining provisions of that document shall not be affected or impaired, particularly if to do so would require the court to make a new contract for the parties. 

  

	(p)	Under the provisions of Council Regulation (EC) No 44/2001 of 22 December 2000 and the Civil Jurisdiction and Judgements Act 1982 (as amended by the Civil Jurisdiction and
Judgements Order 2001) there is a procedure for the registration of English judgements in Scotland. In order to have an English judgement so registered the original judgement, signed by an Officer of Court together with the Court stamp, must be
produced. In addition all appeal procedures in respect of the judgement must be exhausted. Where, in compliance with this procedure, registration of an English judgment takes place, there is no need for any further hearing in Scotland and a creditor
can, after registration, take steps to enforce the English judgement in Scotland in accordance with Scottish enforcement procedure. 

  
 A Scottish court may decline jurisdiction where the Facility Agreement includes a prorogation agreement on the principle of forum non conveniens. Where
the Scottish courts entertain jurisdiction, expert evidence would require to be led on any relevant provisions of English law. If the creditor is successful, a Scottish court will award decree in favour of the creditor against the debtor. Such a
decree is the equivalent of an English judgement and, after obtaining such a decree, a creditor can proceed to enforcement in Scotland in accordance with Scottish procedure. 
  
 This opinion shall be governed by and construed in accordance with the law of Scotland. 
  
 This opinion is strictly limited to the matters specifically stated herein and is not to be
read as extending by implication to any other matter. 
  
 This opinion is provided
solely for the benefit of the persons to whom it is addressed and may not be communicated to or relied upon by any other person, firm or corporation whatsoever other than for the purposes of disclosure for information only to legal advisors,
auditors and, to the extent required by law, regulators of the addressees. 
  
 Yours faithfully, 
  

 72 








 SCHEDULE 8 
  
 EXISTING BORROWINGS 
  

			
	 Description

	  	Final Maturity


	 5.3% 10,000,000 EUR EMTN
	  	29/6/2004
		
	 0% 10,000,000 EUR EMTN
	  	30/7/2004
		
	 Variable 5,000,000 GBP EMTN
	  	15/10/2004
		
	 6.63% 50,000,000 GBP EMTN
	  	26/11/2004
		
	 Variable 1,500,000,000 JPY EMTN
	  	7/6/2005
		
	 Variable 2,000,000,000 JPY EMTN
	  	27/6/2005
		
	 Variable 50,000,000 USD EMTN
	  	14/7/2005
		
	 Variable 50,000,000 USD EMTN
	  	8/8/2005
		
	 6.75% 500,000,000 CZK EMTN
	  	12/9/2005
		
	 6.9% 1,500,000,000 CZK EMTN
	  	21/9/2005
		
	 6.715% 25,000,000 GBP EMTN
	  	13/2/2008
		
	 5.25% 725,000,000 deutschemark bond
	  	8/4/2008
		
	 Variable 30,000,000 GBP EMTN
	  	17/6/2008
		
	 Variable 9,000,000 EUR EMTN
	  	30/6/2008
		
	 5.03% 125,000,000 NLG EMTN
	  	15/7/2008
		
	 Variable 7,000,000 GBP EMTN
	  	16/7/2009
		
	 Variable 20,000,000 EUR EMTN
	  	13/10/2009
		
	 6.625% 200,000,000 euro-sterling bond
	  	14/1/2010
		
	 Variable rate 650,000,000 Australian Dollar bond
	  	18/7/2011
		
	 8.375% 200,000,000 euro-sterling bond
	  	20/2/2017
		
	 5.9% 300,000,000 GBP EMTN
	  	22/2/2021
		
	 6.75% 250,000,000 euro-sterling bond
	  	29/5/2023
		
	 Retail Price Index Linked 175,000,000 GBP bond
	  	13/10/2024
		
	 6.125% 25,000,000 GBP EMTN
	  	14/4/2028
		
	 4.6% 10,000,000,000 JPY Note
	  	27/7/2029
		
	 5.75% 50,000,000 GBP EMTN
	  	9/12/2039
		
	 6.5% 100,000,000 GBP EMTN
	  	31/5/2041
		
	 Variable 35,000,000 USD European Investment Bank loan
	  	16/9/2008
		
	 4.95% 30,000,000 GBP European Investment Bank loan
	  	3/2/2009
		
	 Variable 50,000,000 GBP European Investment Bank loan
	  	15/3/2010
		
	 6.28% 48,000,000 GBP European Investment Bank loan
	  	24/3/2010
		
	 5.75% 50,000,000 GBP European Investment Bank loan
	  	1/2/2011
		
	 Variable 3,600,000 GBP Loan Notes
	  	31/3/2006

  

 73 








 SCHEDULE 9 
  
 FORM OF CONFIDENTIALITY UNDERTAKING 
  

	To:	[Potential Bank] 

  

	Re:	US$375,000,000 credit agreement dated [l], 2004
between (amongst others) Scottish Power PLC (as Borrower) and the Royal Bank of Scotland Plc (as Agent) (the Agreement) 

  
 Dear Sirs 
  
 We understand that you are considering participating in the Facilities. In consideration of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows:

  

	1.	CONFIDENTIALITY UNDERTAKING  

  
 You undertake: 
  

	 	(a)	to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is
protected with security measures and a degree of care that would apply to your own confidential information; 

  

	 	(b)	to keep confidential and not disclose to anyone the fact that the Confidential Information has been made available or that discussions or negotiations are taking place or have taken
place between us in connection with the Facilities; 

  

	 	(c)	to use the Confidential Information only for the Permitted Purpose; 

  

	 	(d)	to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2(b) below) acknowledges and complies with
the provisions of this letter as if that person were also a party to it; and 

  

	 	(e)	not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Facilities.


  

	2.	PERMITTED DISCLOSURE  

  
 We agree that you may disclose Confidential Information: 
  

	 	(a)	to members of the Participant Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of
members of the Participant Group; 

  

	 	(b)	(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of
any stock exchange on which the shares or other securities of any member of the Participant Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Participant Group;
or 

  

 74 









	 	(c)	with the prior written consent of us and the Borrower. 

  

	3.	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE 

  
 You agree (to the extent permitted by law) to inform us of the full circumstances of any disclosure under paragraph 2(b) or upon becoming aware that
Confidential Information has been disclosed in breach of this letter. 
  

	4.	RETURN OF COPIES  

  
 If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of
Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each
case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with
internal policy, or where the Confidential Information has been disclosed under paragraph 2(b) above. 
  

	5.	CONTINUING OBLIGATIONS  

  
 The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us.
Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub participation) an interest, direct or indirect in the Facilities or (b) twelve months after you
have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph
2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed). 
  

	6.	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC.  

  
 You acknowledge and agree that: 
  

	 	(a)	neither we nor any of our officers, employees or advisers (each a Relevant Person) (i) make any representation or warranty, express or implied, as to, or assume any
responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or any member of the Group or the assumptions on which it is based or (ii) shall be under any obligation to
update or correct any inaccuracy in the Confidential Information or any other information supplied by us or any member of the Group or be otherwise liable to you or any other person in respect to the Confidential Information or any such information;
and 

  

	 	(b)	we or members of the Group may be irreparably harmed by the breach of the terms of this letter and damages may not be an adequate remedy; each Relevant Person or member of the Group
may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you. 

  

 75 









	7.	NO WAIVER; AMENDMENTS, ETC  

  
 This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No
failure or delay in exercising any right, power or privilege under this letter will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any
other right, power or privileges under this letter. The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between us. 
  

	8.	INSIDE INFORMATION  

  
 You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose. 
  

	9.	NATURE OF UNDERTAKINGS  

  
 The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the
benefit of the Borrower and each other member of the Group. 
  

	10.	THIRD PARTY RIGHTS 

  

	(a)	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act
1999 is excluded. 

  

	(b)	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person or any member of the Group to rescind or vary this letter
at any time. 

  

	11.	GOVERNING LAW AND JURISDICTION 

  
 This letter (including the agreement constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of
England and the parties submit to the non-exclusive jurisdiction of the English courts. 
  

	12.	DEFINITIONS 

  
 In this letter (including the acknowledgement set out below): 
  
 Confidential Information means any information relating to the Borrower, the Group, and the Facilities, including, without limitation, the
information memorandum (if applicable), provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information
which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the
information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been
obtained in violation of, and is not otherwise subject to, any obligation of confidentiality; 
  

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 Facilities means the facilities made available to the Borrower under the Agreement. 
  
 Group means the Borrower and each of its holding companies and
subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985); 
  
 Participant Group means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such
term is defined in the Companies Act 1985); and 
  
 Permitted
Purpose means considering and evaluating whether to enter into the Facilities. 
  
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  
 Yours faithfully 
  

 For and on behalf of 
  
 [Lender] 
  

	To:	[Lender] 

 The Borrower and each other member of the Group

  
 We acknowledge and agree to the above: 
  

 For and on behalf of 
  
 [Potential
Bank] 
  

 77 








 SIGNATORY 
  

SIGNATORIES TO THE FACILITY AGREEMENT 
  

					
	 Company
	  	 
		
	SCOTTISH POWER PLC	  	 
			
	By:	  	A J M COATS	  	 
		
	 Mandated Lead Arrangers
	  	 
		
	THE BANK OF TOKYO-MITSUBISHI, LTD	  	 
			
	By:	  	ANDREW TRENOUTH	  	 
		
	BARCLAYS CAPITAL	  	 
			
	By:	  	MARK POPE	  	 
		
	COMMERZBANK AKTIENGESELLSCHAFT	  	 
			
	By:	  	JONATHAN R BOURNE	  	LYNDON SETTLE
		
	HSBC BANK PLC	  	 
			
	By:	  	ANDREW AITKEN	  	 
		
	J.P. MORGAN PLC	  	 
			
	By:	  	CRAIG MEHARRY	  	 
		
	THE ROYAL BANK OF SCOTLAND PLC	  	 
			
	By:	  	JOHN HARE	  	 

  

 78 









					
	 Agent
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC
	  	 
			
	 By:
	  	 JOHN HARE
	  	 
		
	 Original Banks
	  	 
		
	 ABN AMRO BANK N.V.
	  	 
			
	 By:
	  	 MARTYN TAPLIN
	  	 PAUL MATTHEWS

		
	 ALLIED IRISH BANKS, P.L.C.
	  	 
			
	 By:
	  	 KEVIN BOYD
	  	 
		
	 BANK OF AMERICA, N.A.
	  	 
			
	 By:
	  	 JOHN WADE
	  	 
		
	 BARCLAYS BANK PLC
	  	 
			
	 By:
	  	 MARK POPE
	  	 
		
	 BBVA IRELAND PLC
	  	 
			
	 By:
	  	 PABLO VALLEJO
	  	 
		
	 BNP PARIBAS, LONDON BRANCH
	  	 
			
	 By:
	  	 ALAN POWELL
	  	 CLARE WEBB

		
	 CALYON, LONDON BRANCH
	  	 
			
	 By:
	  	 STEPHEN TUBB
	  	 MICHELE DEE


  

 79 









					
		
	 CDC FINANCE - CDC IXIS
	  	 
			
	 By:
	  	 HENRI MALICK
	  	 CHRISTOPHE DROUARD

		
	 CITIBANK, N.A.
	  	 
			
	 By:
	  	 NIELS KIRK
	  	 
	
	 COMMERZBANK AKTIENGESELLSCHAFT

			
	 By:
	  	 JONATHAN R BOURNE
	  	 LYNDON SETTLE

		
	 CREDIT SUISSE FIRST BOSTON
	  	 
			
	 By:
	  	 PETER STEVENS
	  	 GARRETT LYNSKEY

	
	 DEUTSCHE BANK AG LONDON

			
	 By:
	  	 DAVID BYRNE
	  	 RICHARD SEDLACEK

	
	 FORTIS BANK S.A./N.V.

			
	 By:
	  	 MARTIN DORE
	  	 PAUL BARNES

	
	 HSBC BANK PLC

			
	 By:
	  	 ANDREW AITKEN
	  	 
	
	 ING BANK N.V., LONDON BRANCH

			
	 By:
	  	 GEOFFREY SMITH
	  	 GERALD WALKER

	
	 JPMORGAN CHASE BANK

			
	 By:
	  	 CRAIG ASKHAM
	  	 

  

 80 









					
	 MERRILL LYNCH BANK USA

			
	 By:
	  	 LOUIS ALDER
	  	 
	
	 MIZUHO CORPORATE BANK, LTD.

			
	 By:
	  	 CHRIS GRAY
	  	 
	
	 MORGAN STANLEY DEAN WITTER BANK LIMITED

			
	 By:
	  	 MATHIAS BLUMSCHEIN
	  	 
	
	 NATIONAL AUSTRALIA BANK LIMITED (A.B.N. 12 004 044 937)

			
	 By:
	  	 DAVID ROBERTS
	  	 
	
	 TD BANK EUROPE LIMITED

			
	 By:
	  	 MARK CHERRY
	  	 
	
	 THE BANK OF TOKYO-MITSUBISHI, LTD.

			
	 By:
	  	 ANDREW TRENOUTH
	  	 
	
	 THE ROYAL BANK OF SCOTLAND PLC

			
	 By:
	  	 JOHN HARE
	  	 
	
	 UBS AG, LONDON BRANCH

			
	 By:
	  	 J CAMPBELL
	  	 D BURRI


  

 81