Document:

Exhibit 4.5

 

CONFORMED COPY

 

Concordia
Bus Nordic AB (publ)

 

9.125%
Senior Secured Notes due August 1, 2009

 

Purchase
Agreement

 

July 28, 2005 

 

To : 

Avenue Europe Management LLP 

Bear, Stearns & Co. Inc. 

The Bluebay High Yield (Master) Fund 

Lone Star International Finance Limited 

Thames River Traditional Fund s plc – 

High Income Fund 

Hillside Apex Fund Limited 

Fidelity Investments International 

Fidelity Investment Services Limited 

Nimbus Limited

 

Ladies and Gentlemen:

 

1.                                       Concordia Bus Nordic AB (publ),
a corporation incorporated under the laws of Sweden (the “Company”), proposes that:

 

(a)                                  At the request of the Company, the purchasers listed in Schedule IA
below (the “Purchasers”) will
cause Nimbus Limited (“BidCo”), a
company incorporated under the laws of Jersey, to tender (the “Tender Offer”) for up to €76,867,000 of the
Company’s €130,000,000 9.125% Senior Secured Notes due August 1, 2009 (the
“Senior Notes”)) and upon the
closing of the Tender Offer jointly and severally, provide BidCo or procure the
provision to BidCo with sufficient funds to enable it to purchase all of those
Senior Notes that are validly tendered and not withdrawn, at the Tender Offer
Price or the Alternate Tender Offer Price (each as hereinafter defined),
subject to the terms and conditions stated herein and in the manner, at the
time and otherwise in compliance with the Tender Offer;

 

(b)                                 upon a Change of Control Offer (as defined in the indenture
to the Senior Notes (the “Senior Notes
Indenture”)) being required as a result of the exchange of the
€160,000,000 11% Senior Subordinated Notes due February 2010 issued by
Concordia Bus AB (“Bus”) for
ordinary shares of Bus (the “Restructuring”)
then, subject to the terms and conditions stated herein and in accordance with
the Senior Notes Indenture, the Company shall assign to BidCo the obligation to
conduct, on the Company’s behalf, a Change of Control Offer in the manner, at
the times and otherwise in compliance with the Senior Notes Indenture and upon
the closing of the Change of Control Offer the Purchasers agree jointly and
severally to provide BidCo or procure the provision to BidCo with sufficient
funds to enable it to purchase at 101% of the aggregate principal amount of
Senior Notes that are put to it under the Change of Control Offer plus all
accrued but unpaid interest thereon up to (and including) the day immediately
preceding the settlement date for the Change of Control Offer (the “Change of Control Offer Settlement Date”);
and

 

(c)                                  the price payable in the Tender Offer is either: (x) in the
event that the consent fee (the “Consent Fee”)
for the consent solicitation commenced by the Company on March

 

 

16, 2005, as extended from time to time and as
amended and restated on or about the date hereof (as amended and restated the “Revised Consent Solicitation”) has been
paid by the Company in accordance with the terms and conditions of the Revised
Consent Solicitation, a price equivalent to the face amount of the Senior Notes
acquired under the Tender Offer plus any accrued and unpaid interest thereon up
to (and including) the day immediately preceding the settlement date (the “Tender Offer Settlement Date”) of the
Tender Offer (the “Tender Offer Price”)
or (y) in the event that the Consent Fee has not been paid, by the Company,
within two business days of the date on which the Consent Solicitation closes,
a price equivalent to 104% of the principal amount of the Senior Notes acquired
under the Tender Offer plus any accrued and unpaid interest thereon up to (and
including) the day immediately 

preceding the Tender Offer Settlement Date (the “Alternate Tender Office Price”).

 

2.                                       Upon BidCo closing the Tender Offer (the “Tender Offer Closing Date”), the Purchasers
hereby agree, jointly and severally, to provide BidCo or procure the provision
to BidCo with sufficient funds to enable it to purchase all Senior Notes that
are validly tendered and not withdrawn (the “Tendered
Notes”), up to a maximum of €76,867,000 of the outstanding Senior
Notes at the Tender Office Price or the Alternate Tender Office Price (the “Tender Offer Commitment” which, together
with the Change of Control Purchase Commitment shall be hereinafter referred to
as the “Purchase Commitment”).

 

 

3.                                       Subject to
the terms and conditions herein, in the Senior Notes Indenture and in the
Tender Offer, the Company hereby assigns to BidCo the obligation to conduct the
Change of Control Offer occasioned by the Restructuring and BidCo hereby agrees
to make such Change of Control Offer. Upon the closure of the Change of Control
Offer (the “Change of Control Offer Closing
Date”), the Purchasers agree, severally and not jointly, to provide
BidCo or procure the provision to BidCo with sufficient funds to enable it to
purchase all Senior Notes that (i) have not been voted in favor of the
Consent Solicitation and (ii) have not been purchased by BidCo under the
terms of the Tender Offer and (iii) are put to them (the “Change of Control Notes”), up to a maximum
amount of €10,217,000 of the outstanding Senior Notes, at a purchase price of
101% of the principal amount thereof, plus accrued but unpaid interest up to
(and including) the day immediately preceding the Change of Control Offer
Settlement Date (the “Change of Control
Purchase Commitment”). For the
avoidance of doubt, BidCo shall, in no circumstances, be required to purchase,
in aggregate, more than €76,867,000 of the outstanding Senior Notes. The
Tendered Notes and Change of Control Notes are hereinafter referred to as the “Securities”.

 

4.                                       For the benefit of the
Purchasers and Bidco, in respect of their obligations relating to the Change of
Control Offer (and not in respect of their obligations relating to the Tender
Offer), the Company and the Guarantors on the date hereof and will on the date
on which the Change of Control Offer is commenced (the “Change of Control Offer Launch Date”)
represent and warrant to, and agree with, each of the Purchasers and BidCo as
follows:

 

(a)                                  Neither Concordia Bus Nordic Holding AB (“Holding”), the Company nor any of its
subsidiaries taken as a whole has sustained since the last day of the last
fiscal quarter in the Company’s latest completed fiscal year for which interim
financial statements have been made available, any material loss or
interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor

 

2

 

dispute or court of governmental action, order or decree; and
there has not been any change in the capital stock or long-term of Holding, the
Company or any of its subsidiaries or any material adverse change, or any
development involving a prospective material adverse change, in or affecting
the general affairs, management, financial position, shareholders’ equity or
results of operations of Holding, the Company and its subsidiaries taken as a
whole;

 

(b)                                 Each of the Company and the Guarantors has all requisite
corporate power and authority to enter into this Agreement; and this Agreement
has been duly and validly authorized, executed and delivered by the Company and
the Guarantors;

 

(c)                                  the supplemental indenture described in the Revised Consent
Solicitation (the “Supplemental Indenture”)
has been duly authorised and, when executed and delivered by the Company and
the Guarantors, will have been duly executed and delivered and (assuming due
authorisation, execution and delivery by the Trustee and receipt by the Company
of the Required Consents (as defined in the Revised Consent Solicitation
statement)) will have been adopted in a manner consistent with the requirements
of the Senior Notes Indenture and will constitute (as will the Senior Notes
Indenture, thereby amended) a valid and legally binding obligation of the
Company and the Guarantors, enforceable against the Company and the Guarantors
in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or
affecting creditors’ rights and to general equity principles (whether
enforcement is sought in a proceeding in equity or at law);

 

(d)                                 None of the transactions contemplated by this Agreement will
violate or result in a violation by Holding, the Company or any of its
subsidiaries, or to the Company’s knowledge, by anyone else of Section 7
of the United States Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or any regulation
promulgated thereunder, including, without limitation, Regulations T, U, and X
of the Board of Governors of the Federal Reserve System of the United States;

 

                                                (e)                                  The consummation of the transactions contemplated herein will
not: (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, any indenture, mortgage,
charge, deed of trust, loan agreement, guarantee, lease or other agreement or
instrument to which Holding, the Company or any of its subsidiaries is a party
or by which Holding, the Company or any of its subsidiaries is bound or to
which any of the properties or assets or Holding, the Company or any of its
subsidiaries is subject; (ii) result in any violation of the provisions of
the constitutive documents of Holding, the Company or any of its subsidiaries
or any statute; (iii) result in the imposition or creation of (or the
obligation to create or impose) a lien under any agreement or instrument (other
than pursuant to the terms of the Indenture and the Security Documents) to
which Holding, the Company or any of its subsidiaries is a party or by which
Holding, the Company or any of its subsidiaries is a party or by which Holding,
the Company or any of its subsidiaries or their respective property is bound; (iv) result
in any violation of any order, rule or regulation of any court, central
bank, stock exchange or governmental or quasi-governmental agency or body (“Governmental Agency”) having jurisdiction
over Holding, the Company or any of its subsidiaries or any of their
properties; (v) result in the suspension, termination or revocation of any
governmental authorization, approval, consent or license (“Governmental Authorization”) of or with any
Governmental Agency held or previously obtained by or on behalf of Holding, the
Company or any of its subsidiaries; or (vi) require any Governmental
Authorizations;

 

3

 

(f)                                    The audited and unaudited consolidated financial statements
of the Company and its subsidiaries filed with the United States Securities and
Exchange Commission and “SEC”) and
presented fairly and accurately the financial position of the Company and its
subsidiaries at their respective dates and the results of the operations of the
Company and its subsidiaries for the periods covered thereby, and (ii) have
been (save insofar as may be expressly stated therein) prepared in accordance
with accounting principles generally accepted in Sweden and pursuant to the
relevant laws of Sweden in force at the time of preparation of such financial
statements and which have been consistently applied; and

 

(g)                                 each of the representations and warranties, made at the date
of issuance of, and in relation to, the Senior Notes pursuant to that certain
purchase agreement dated January 16, 2004 was true and accurate in all
material respects as at the date of the original Purchase Agreement.

 

5.                                       The Company and each Guarantor hereby agrees that it will
co-operate with and actively assist each Purchaser that is or may be considered
an “Affiliate” of the Company that proposes to offer some or all of its
Securities for sale. The Company and each Guarantor hereby agree that it will
enter into a registration rights agreement with BidCo and the Purchasers
providing for two (2) customary demand registration rights as well as incidental
registration rights for the benefit of Bidco and the Purchasers, subject to
standard terms and conditions of registration rights agreement generally. This
assistance will also include but not be limited to making all such regulatory
filings and effecting all such registrations with securities regulators that
are reasonably requested by any Purchaser to permit ready distribution of
Securities held by such Purchaser.

 

6.                                       The Purchasers shall cause BidCo to purchase all those Senior
Notes validly tendered and not withdrawn in each of the Tender Offer and the
Change of Control Offer upon the terms and subject to the conditions specified
in the documents pertaining to the Tender Offer or the Change of Control Offer,
as applicable.

 

7.                                       For the benefit of BidCo and the Purchasers in respect of
their obligations relating to the Change of Control Offer (but not in respect
of their obligations relating to the Tender Offer), the Company and the
Guarantors, jointly and severally, agree with BidCo and each of the Purchasers:

 

(a)                                  That the claims of the holders of the Securities rank at
least pari passu with the claims
of all other unsubordinated unsecured creditors of the Company, present and
future (except for such claims which may be mandatorily preferred from time to
time under applicable Swedish laws); and the claims of the holders of the
Securities under the guarantees in respect thereto, rank at least pari passu with the claims of all other
unsubordinated unsecured creditors of the respective Guarantors thereunder,
present and future (except for such claims which may be mandatorily preferred
from time to time under applicable laws);

 

(b)                                 Promptly from time to time to take such action as the
Purchasers may reasonably request to qualify the Securities for offering and
sale under the securities laws of such jurisdictions as the Purchasers may
request and to comply with such laws so as to permit the continuance of sales
and dealings therein in such jurisdictions for as long as may be necessary to
complete the distribution of the Securities, provided that in connection
therewith the Company shall not be required to qualify as a foreign corporation
or to file a general consent to service of process in any jurisdiction;

 

4

 

(c)                                  Not to be or become, at any time prior to the expiration of
three years after the completion of the Change of Control Offer, an open-end
investment company, unit investment trust, closed-end investment company or
face-amount certificate company that is or is required to be registered under Section 8
of the Investment Company Act;

 

(d)                                 To comply with the reporting obligations provided for in section 1019
of the Senior Notes Indenture;

 

(e)                                  To ensure that the Company remains an SEC reporting company
and to furnish, at any time when the Company is not exempt from registration
under Section 12(b) of the Exchange Act nor subject to Section 13
or 15(d) of the Exchange Act, for the benefit of holders from time to time
of Securities, at the Company’s expense, upon request, to holders of Securities
and prospective purchasers of securities information satisfying the
requirements of subsection (d)(4)(i) of Rule 144A under the
Securities Act of 1933, as amended (the “Act”);

 

(f)                                    During a period of three years from the date of this
Agreement, to furnish to the Purchasers such additional information concerning
the business and financial condition of the Company and the Guarantors as any
Purchaser may from time to time reasonably request (such financial statements
to be on a consolidated basis to the extent the accounts of the Company and its
subsidiaries are consolidated in reports furnished to its shareholders
generally or to the SEC);

 

(g)                                 Not to (and to cause its subsidiaries not to) take, directly
or indirectly, any action which is designed to or which constitutes or which
might reasonably be expected to cause or result in a violation of Regulation M
under the Act or any other laws, rules or regulation in any jurisdiction
relating to stabilization or manipulation of the price of any security of the
Company or any Guarantor to facilitate the sale or resale of the Securities;

 

(h)                                 During the period of two years after the completion of the
Change of Control Offer, the Company will not resell any of the Securities
which constitute “restricted securities” under Rule 144 that have been
reacquired by it;

 

(i)                                     Neither the Company, nor any person (other than BidCo and the
Purchasers) acting on its or their behalf will offer or sell the Securities by
means of any general solicitation or general advertising within the meaning of Rule 502(c) under
the Act or, with respect to Securities sold outside the United States to
non-U.S. persons (as defined in Rule 902 under the Act), by means of any
directed selling efforts within the meaning of Rule 902 under the Act;

 

(j)                                     Not to distribute, or cause to be distributed any offering
material relating to the Securities in contravention of securities laws in the
relevant local jurisdiction;

 

(k)                                  To pay any amounts due as a result of any value added taxes (“VAT”) payable by the Purchasers in respect
of commissions (whether or not paid as discounts), fees or expenses payable or
reimbursable by the Company pursuant to this Agreement;

 

(l)                                     To provide to BidCo and the Purchasers information reasonably
requested by them in connection with their making of the change of Control
Offer, which information shall be accurate in all material respects; and

 

5

 

(m)                               The Company shall pay, on the Revised Consent Solicitation
settlement date, the Consent Fee then due and payable in accordance with the
terms and subject to the conditions of the Revised Consent Solicitation.

 

8.                                       For the benefit
of BidCo and the Purchasers in respect of their obligations relating to the Tender
Offer (but not in respect of their obligations relating to the Change of
Control Offer), the Company and the Guarantors, jointly and severally, agree
with BidCo and each of the Purchasers that:

 

(a)                                  on the first date on which Nordic receives funds drawn by
Holding under the Mezzanine Facility or on the date hereof, whichever is later,
the Company shall set aside the sum equal to the Consent Fee of €5,200,000.

 

(b)                                 In the event that BidCo on behalf of the Purchasers is
obligated to pay the Alternate Tender Offer Price, as a result of the Company’s
failure to pay the Consent Fee in accordance with the terms and subject to the
conditions of the Revised Consent Solicitation, the Company hereby agrees to
pay to BidCo, on demand, the sum of €5,200,000. 
BidCo will apply such funds:

 

	
  (i)

  	
   

  	
  to pay an amount equal to 4% of the principal amount of all
  Senior Notes validly tendered and not withdrawn in the Tender Offer prior to
  the expiry date; and

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  to pay the Consent Fee to all Senior Noteholders that have
  validly given and not withdrawn their consents under the Revised Consent
  Solicitation and which have not tendered their Senior Notes in the Tender Offer.

  

 

(c)                                  On the date
on which Tranche A of the Mezzanine Facility is first drawn, the Company shall
set aside an amount equal to 1% of the aggregate principal amount of Senior
Notes that could be validly tendered in the Change of Control Offer (the “Change of Control Premium”) and shall pay
such funds to BidCo in accordance with Clause 9 below.

 

9.                                       In addition to
its obligations under Clause 8 above the Company covenants and agrees with each
of the Purchasers and BidCo that the Company will pay or cause to be paid the
following: (i) with the consent of BidCo, to each Purchaser, pro-rata to
its Tender Offer Commitment detailed in Schedule IA on the first date on
which Nordic receives funds drawn by Holding under the Mezzanine facility to
which Holding is a party (the “Mezzanine
Facility”) or on the date hereof, whichever is later, a commitment
fee in the amount of €776,778 (ii) to BidCo on the Tender Offer Settlement
Date and the Change of Control Offer Settlement Date,  as applicable, a funding fee equal to 2% of
the aggregate principal amount of the Senior Notes plus accrued but unpaid
interest thereon up to (and including) the day immediately preceding the Tender
Offer Settlement Date or the Change of Control Offer Settlement Date, purchased
by BidCo pursuant to the Tender Offer or the Change of Control Offer, as
applicable, provided that no funding fee shall be paid with respect to the
Change of Control Premium; (iii) to BidCo on the date which falls one
business day prior to the date on which BidCo purchases Senior Notes pursuant
to the Change of Control Offer, the Change of Control Premium; (iv) the
fees, disbursements and expenses of the Company’s counsel (including its U.S.,
Swedish, Finnish and Norwegian counsels) and accountants in connection with the
Tender Offer or any Change of Control Offer; (v) the cost of printing or
producing this Agreement, all documents relating to either the Tender Offer or
the Change of Control 

 

6

 

Offer (including any
compilations thereof) and all other documents in connection with the exercise
of the Tender Offer or any Change of Control Offer; (vi) all out-of-pocket
expenses (including all fees, disbursements and expenses of U.S. and Swedish
counsel to the Purchasers) incurred by the Purchasers and/or BidCo in
connection with the transactions contemplated hereby, including but not limited
to all costs and expenses incurred by the Purchasers in the creation and
formation of BidCo; (vii) all costs and expenses incurred by BidCo and the
Purchasers in relation to the Tender Offer and the Change of Control Offer,
including but not limited to incorporation costs, corporate service and
director service costs and any legal costs incurred in relation to establishing
BidCo up to a maximum of £40,000; (viii) all costs and expenses of Lucid
Issuer Services Limited, incurred in relation to the Tender Offer and the
Change of Control Offer and (ix) all other costs and expenses incidental
to the performance of the obligations hereunder which are not otherwise
specifically provided for in this Section. It is understood, however, that,
except as provided in this Section, the Purchasers will pay all of their own
costs and expenses, transfer taxes on resale of any of the Securities by them,
and any advertising expenses, connected with any offers they may make. All
payments hereunder shall be made without any set-off or counterclaim and free
and clear of any withholding or deduction of or on account of applicable tax
save as may be required by law. If the Company is required by law to make any
deduction or withholding from any sum payable hereunder, the sum in respect of
which the deduction or withholding is required to be made shall be increased to
the extent necessary to ensure that BidCo and each Purchaser and its affiliates
receive and retain a net sum equal to that which it would have received had no
such deduction or withholding been required to be made.

 

10.                                 All payments to be made hereunder shall be made on demand
(unless otherwise specified) and in immediately available freely transferable
funds and in the currency of invoice to such account with such bank in the
principal financial centre of the currency of invoice as the recipient shall
notify to the payer.

 

11.                                 The fees and amounts representing the reimbursement of
expenses which are payable hereunder shall be payable, in whole or in part, to
any of the affiliates of any Purchaser in the event such Purchaser so directs
the Company prior to the payment of the fees and amounts in question. In the
absence of any other direction, all fees and amounts payable hereunder shall be
payable to each Purchaser to such account as each respective Purchaser shall
previously have requested.

 

12.                                 All fees and other amounts payable hereunder are exclusive of
any VAT or other equivalent or similar tax, which shall also be payable by the
Company if applicable.

 

13.                                 The obligations of the Purchasers and BidCo hereunder with
respect to the Change of Control Offer, but not the Tender Offer, shall be
subject, in their discretion, to the condition that all representations and
warranties and other statements of the Company and the Guarantors herein are,
at and as of the date hereof and at the Change of Control Offer Launch Date,
true and correct and to the condition that the Company and Guarantors shall
have performed all of their respective obligations hereunder with respect to
the Change of Control Offer, but not the Tender Offer, theretofore to be
performed, and to the following additional conditions:

 

(a)                                  Clifford Chance, U.S.
counsel for the Company, Advokatfirman Lindahl KB, Swedish counsel for the
Purchasers and the Company, Bugge, Arentz-Hansen & Rasmussen, 

 

7

 

Norwegian counsel for the Company and the
Purchasers, and Hannes Snellman, Attorneys at Law Ltd., Finnish counsel for the
Company and the Purchasers, each shall have furnished to the Purchasers their
written opinion, in the same form and substance as that which was given upon
the issuance of the Senior Notes, save to the extent that such opinion shall be
addressed to each Purchaser and BidCo, dated the Change of Control Offer Launch
Date and shall further confirm as of the date hereof the following matters:

 

(A)                              Each of the Company and the Guarantors has all requisite
power and authority to enter into this Agreement and this Agreement has been
duly authorized, executed and delivered by the Company and the Guarantors;

 

(B)                                No Governmental Authorization is required for the
consummation by the Company or the Guarantors of the transactions contemplated
by this Agreement, or the Change of Control Offer;

 

(C)                                Under the laws of the State of New York relating to personal
jurisdiction, each of the Company and the Guarantors have, pursuant to Section 17
of this Agreement, (i) validly and irrevocably submitted to the personal
jurisdiction of any state or federal court located in the Borough of Manhattan,
The City of New York, New York (each a “New
York Court”) in any action arising out of or relating to this
Agreement or the Change of Control Offer, respectively, or the transactions
contemplated hereby or thereby, (ii) validly and irrevocably waived any
objection to the venue of a proceeding in any such court, and (iii) validly
and irrevocably appointed the Authorized Agent (as defined herein) as its
authorized agent for the purpose described in Section 20 hereof; and
service of process effected on such agent in the manner set forth in Section 20
hereof will be effective to confer valid personal jurisdiction over the Company
or the Guarantors, as the case may be, with respect to this Agreement and
documents relating to the Change of Control Offer;

 

(D)                               The agreement of each of the Company and the Guarantors (as
applicable) to the choice of law provisions set forth in Section 24
hereof, will be recognized by the courts of its jurisdiction of incorporation;
each of the Company and the Guarantors can sue and be sued in its own name
under the laws of its jurisdiction of incorporation; the irrevocable submission
of each of the Company and the Guarantors to the non-exclusive jurisdiction of
a New York Court, the waiver by each of the Company and the Guarantors of any
objection to the venue of a proceeding of a New York Court and the agreement of
each of the Company and the Guarantors that this Agreement and documents
relating to the Change of Control Offer shall each be governed by and construed
in accordance with the laws of the State of New York are legal, valid and
binding, insofar as the laws of the respective jurisdictions of the Company and
the Guarantors are concerned; service of process effected in the manner set
forth in Section 20 hereof will be effective to confer valid personal
jurisdiction over each of the Company and the Guarantors (as applicable),
insofar as the laws of its jurisdiction of incorporation are concerned; and
judgment obtained in a New York Court arising out of or in relation to the
obligations of the Company and the Guarantors (as applicable) under this
Agreement, documents relating to the Change of Control Offer or the Senior
Notes Indenture would be enforceable against the Company and the Guarantors, as
the case may be, in the courts of their respective jurisdictions of
incorporation;

 

8

 

(E)                                 Neither the Company, nor any of the Guarantors (as
applicable), is entitled to any immunity on the basis of sovereignty or
otherwise in respect of its obligations under this Agreement or the documents
relating to the Change of Control Offer and could not successfully interpose
any such immunity as a defense to any suit or action brought or maintained in
respect of its obligations under this Agreement, documents relating to the
Change of Control Offer and the waiver by each of the Company and the
Guarantors of immunity to jurisdiction (including the waiver of sovereign
immunity to which the Company or such Guarantor may become entitled subsequent
to the date of this Agreement) and immunity to pre-judgment attachment,
post-judgment attachment and execution in any suit, action or proceeding
against it arising out of or based on this Agreement, documents relating to the
Change of Control Offer is a valid and binding obligation of the Company under
Swedish law and each of the Guarantors under the laws of the jurisdiction of
its organization;

 

(F)                                 To the best of such counsel’s knowledge, there are no legal
or governmental proceedings pending to which Holding, the Company or any of its
subsidiaries or Bus is a party or of which any property of Holding, the Company
or any of its subsidiaries or Bus is the subject which, if determined adversely
to Holding, the Company, any of its subsidiaries or Bus, as the case may be,
would individually or in the aggregate have a material adverse effect on the
current or future consolidated financial position, business prospects,
shareholders’ equity or results of operations of Holding, the Company and its
subsidiaries; and, to the best of such counsel’s knowledge, no such proceedings
are threatened or contemplated by governmental authorities or threatened by
others; and

 

(G)                                None of Holding, the Company or any of its subsidiaries is in
violation of its constitutive documents or in default in the performance or
observance of any material obligation, covenant or condition contained in any
indenture, mortgage, charge, deed of trust, loan agreement, guarantee, lease or
other agreement or instrument to which it is a party or by which it or any of
its properties may be bound; and Bus is not in violation of its constitutive
documents or (other than such defaults as arise under the indenture under which
the €160,000,000 11% Senior Subordinated Notes were issued by Concordia Bus AB)
in default in the performance or observance of any material obligation,
covenant or condition contained in any indenture, mortgage, charge, deed of
trust, loan agreement, guarantee, lease or other agreement or instrument to
which it is a party or by which it or any of its properties may be bound;

 

(H)                               The Supplemental Indenture has been duly authorised and, when
executed and delivered by the Company and the Guarantors, will have been duly
executed and delivered and (assuming due authorisation, execution and delivery
by the Trustee and receipt by the Company of the Required Consents (as defined
in the Revised Consent Solicitation statement)) will have been adopted in a
manner consistent with the requirements of the Senior Notes Indenture and will
constitute (as will the Senior Notes Indenture, thereby amended) a valid and
legally binding obligation of the Company and the Guarantors, enforceable
against the Company and the Guarantors in accordance with its terms, subject,
as to enforcement, to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles (whether enforcement is sought in a proceeding in equity or
at law);

 

9

 

(b)                                 The Restructuring shall have closed in accordance with the
Restructuring Agreement;

 

(c)                                  The Company shall have furnished or caused to be furnished to
BidCo and the Purchasers, for the benefit of BidCo and the Purchasers in
respect of their obligations relating to the Change of Control Offer (and not
in respect of their obligations relating to the Tender Offer), on the Change of
Control Offer Launch Date certificates of its officers satisfactory to BidCo
and the Purchasers as to the accuracy of the Company’s representations and
warranties herein at the date hereof and at and as of the Change of Control
Offer Launch Date, as to the performance by it of all of its obligations
hereunder to be performed at or prior to the Change of Control Offer Launch
Date, as to the matters set forth in subsection (a) of this Section and
as to such other matters as the Purchasers may reasonably request;

 

(d)                                 No default (actual or potential) under the Senior Notes which
has not otherwise been cured or waived; and

 

(e)                                  Satisfaction of all appropriate corporate conditions
precedent (i.e. due incorporation and good standing; due authorisation) in
respect of the Company and each Guarantor.

 

14.                                 The commitments of the Purchasers hereunder are joint and
several and any defaulting Purchaser shall be liable to the non-defaulting
Purchasers and the Company, but not to any other party hereto, for not funding
or procuring the funding of its respective commitment under Schedule IA of
this Agreement when such commitment is due to be funded.

 

15.                                 The respective agreements, representations, warranties and
other statements of the Company, the Guarantors and the several Purchasers, as
set forth in this Agreement or made by or on behalf of them, respectively,
pursuant to this Agreement, shall remain in full force and effect, regardless
of any investigation (or any statement as to the results thereof) made by or on
behalf of any Purchaser or any controlling person of any Purchaser, or the
Company or any Guarantor any officer or director or controlling person of the
Company or any Guarantor, and shall survive purchase of and payment for the
Securities.

 

16.                                 The Company confirms that it has been informed of the
existence of the informational guidance published by the Financial Services
Authority in relation to stabilization.

 

17.                                 All statements, requests, notices and agreements hereunder
shall be in writing, and if to BidCo or the Purchasers shall be delivered or
sent to BidCo and each Purchaser by mail, telex or facsimile transmission at
BidCo’s, or such Purchaser’s respective address and email address, set out
under its signature hereto, with a copy to Cadwalader, Wickersham &
Taft LLP, 265 Strand, London WC2R 1BH, for the attention of Richard L. Nevins;
and if to the Company shall be delivered or sent by mail, telex or facsimile
transmission to c/o Solna Strandväg 78, SE-171 Solna, Sweden, if to BidCo to
Nimbus Limited, Whiteley Chambers, Don Street, St. Helier, Jersey, Attn:
Corporate Services and if to any Guarantor shall be delivered or sent by mail,
telex or facsimile transmission to such Guarantor care of the Company at such
address of the Company. Any such statements, requests, notices or agreements
shall take effect upon receipt thereof.

 

10

 

18.                                 This Agreement shall be binding upon, and inure solely to the
benefit of, BidCo the Purchasers, the Company and the Guarantors and, to the
extent provided in Section 13 hereof, the officers and directors of the
Company and each person who controls the Company, or the officers and directors
of BidCo and each Purchaser and each person who controls BidCo or any Purchaser
as the case may be, and their respective heirs, executors, administrators,
successors and assigns, and no other person shall acquire or have any right
under or by virtue of this Agreement. No purchaser of any of the Securities
from BidCo or a Purchaser shall be deemed a successor or assign by reason
merely of such purchase.

 

19.                                 (a)                                  Notwithstanding any other provision of this Agreement, BidCo
shall be liable for any claim of any person under or in connection with this
Agreement only if and to the extent that BidCo has assets available for the
purpose of paying such claim, and to the extent that any such claim exceeds the
assets of BidCo available for the purpose of paying such claim, that claim
shall be extinguished.

 

(b)                                 Each party to this Agreement agrees that it shall not
institute against, or join any person in instituting against, BidCo any
bankruptcy, reorganisation, arrangement, insolvency or liquidation proceeding,
or other proceeding under any bankruptcy or similar law of any jurisdiction,
for one year and a day after the Change of Control Settlement Date.

 

(c)                                  The obligations of BidCo under this Agreement are solely the
corporate obligations of BidCo.  No
recourse shall be had for the payment of any amount owing by BidCo under or in
connection with this Agreement against any agent, employee, officer, director
or shareholder of BidCo.

 

(d)                                 The terms of this clause 19
shall survive termination of this Agreement.

 

20.                                 Each of the Company irrevocably (i) agrees that any
legal suit, action or proceeding against it may be brought by BidCo or any
Purchaser, or by any officer or director of BidCo or any Purchaser or any
person who controls BidCo or any Purchaser, arising out of or based upon this
Agreement or the transactions contemplated hereby may be instituted in any New York
Court, (ii) waives, to the fullest extent it may effectively do so, any
objection which it may now or hereafter have to the laying of venue of any such
proceeding and (iii) submits to the non-exclusive jurisdiction of such
courts in any such suit, action or proceeding. Each of the Company and the
Guarantors irrevocably waives any immunity to jurisdiction to which it may
otherwise be entitled or become entitled (including sovereign immunity,
immunity to pre-judgment attachment, post-judgment attachment and execution) in
any legal suit, action or proceeding against it arising out of or based on this
Agreement or the transactions contemplated hereby which is instituted in any
New York Court or in any competent court in Sweden. Each of the Company and the
Guarantors has appointed CT Corporation System, New York, New York, as it
authorized agent (the “Authorized Agent”)
upon whom process may be served in any such action arising out of or based on
this Agreement or the transactions contemplated hereby which may be instituted
in any New York Court by BidCo or any Purchaser, or by any officer or director
of BidCo or any Purchaser or any person who controls BidCo or any Purchaser,
expressly consents to the jurisdiction of any such court in respect of any such
action, and waives any other requirements of or objections to personal
jurisdiction with respect thereto. Such appointments shall be irrevocable. Each
of the Company and the Guarantors represents and warrants that the Authorized
Agent has agreed to act as such agent for service of process and agrees to take
any and all action, including the filing of any and all documents and
instruments, that may be necessary to continue such

 

11

 

appointment in full force and effect as aforesaid. Service of
process upon the Authorized Agent and written notice of such service to the
Company or a Guarantor, as the case may be, shall be deemed, in every respect,
effective service of process upon the Company or such Guarantor, as the case
may be.

 

21.                                 In respect of any judgment or order given or made for any
amount due hereunder that is expressed and paid in a currency (the “judgment currency”) other than Euro, the
Company and the Guarantors (if the Company or any Guarantor is the obligor for
such amount) will, jointly and severally, indemnify BidCo and each Purchaser
against any loss incurred by BidCo or such Purchaser as a result of any
variation as between (i) the rate of exchange at which the United States
dollar amount is converted into the judgment currency for the purpose of such
judgment or order and (ii) the rate of exchange at which BidCo or such
Purchaser is able to purchase Euro with the amount of judgment currency
actually received by BidCo or such Purchaser. The foregoing indemnity shall
constitute a separate and independent obligation of the Company and the
Guarantors and shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid. The term “rate
of exchange” shall include any premiums and costs of exchange
payable in connection with the purchase of or conversion into Euro.

 

22.                                 Time shall be of the essence of this Agreement.

 

23.                                 The provisions of this Agreement supersede all prior oral
and/or written understandings and previous versions of the fees letter dated July 21,
2005 (the “Fees Letter”) and
comprises the entire agreement (in respect of matters referred to herein)
between the Company, BidCo and the Purchasers and in case of inconsistencies or
conflicts between the provisions of the Fees Letter and this Agreement, the
provisions of this Agreement shall prevail.

 

24.                                 This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

 

25.                                 This Agreement may be executed by any one or more of the parties
hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such respective counterparts shall together constitute one
and the same instrument.

 

If the foregoing is in accordance with your understanding, please sign and
return to the Company nine (9) counterparts hereof, and upon your
acceptance hereof, on behalf of each of the Purchasers, this letter and such
acceptance hereof shall constitute a binding agreement between each of the
Purchasers, the Company and the Guarantors.

 

12

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Concordia Bus Nordic AB (publ)

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: CHIEF OPERATING OFFICER

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: CHIEF FINANCIAL OFFICER

  
	
   

  	
   

  
	
   

  	
  Concordia Bus Nordic Holding AB

  
	
   

  	
   

  
	
   

  	
  By: FRODE LARSEN

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Nimbus Limited

  
	
   

  	
   

  
	
   

  	
  By: SIMON WILLIAM MACKENZIE

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Swebus Busco AB

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: MATHIAS CRONA

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Swebus Express Bus AB

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Interbus AB

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Ingeni&qout;r M.O. Sch&qout;yens
  Bilcentraler 

  AS

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  

 

13

 

	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Concordia Bus Finland Oy Ab

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Swebus Fastigheter AB

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Alpus AB

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Enkoping-Balsta Fastighetsbolag
  AB

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By: RAGNAR NORBÄCK

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  Malmfaltens Omnibus AB

  
	
   

  	
   

  
	
   

  	
  By: PER SKÄRGÅRD

  
	
   

  	
  Title: DIRECTOR

  
	
   

  	
   

  
	
   

  	
  By:
  RAGNAR NORBÄCK

  
	
   

  	
  Title:
  DIRECTOR

  

 

14

 

Swebus AB

 

By: RAGNAR NORBÄCK 

Title: DIRECTOR

 

By:
PER SKÄRGÅRD 

Title:
CHIEF FINANCIAL OFFICER

 

Accepted as of the date hereof:

Purchaser’s Name: AVENUE EUROPE
MANAGEMENT LLP

 

Purchaser’s Address: 

25 Knightsbridge 

London 

SW1X 7RZ

 

By: SONIA GARDNER

 

Contact Person: Sam Perlman 

Email Address:sperlman@avenuecapital.com 

Direct Telephone: +44 (0) 20 7245 1888

 

Purchaser’s Name: BEAR, STEARNS &
CO. INC.

 

Purchaser’s Address: 

383 Madison Avenue 

New York 

New York 10179

 

By: GREGORY A. HANLEY 

Title: SENIOR MANAGING DIRECTOR

 

Contact Person: Bryan Shapiro/Mike Paget 

Email Address: bshapiro@bear.com/mpaget@bear.com 

Direct Telephone: +44 (0) 20 7516 5492

 

Purchaser’s Name: THE BLUEBAY HIGH
YIELD (MASTER) FUND

 

Purchaser’s Address: 

BlueBay Asset Management Limited 

Times Place 

45 Pall Mall 

London 

SW1Y 5JG

 

By: GINA J. GERMANO 

Title: PORTFOLIO MANAGER

 

Contact Person: 

 

15

 

Email Address: 

Direct Telephone:

 

Purchaser’s Name: LONE STAR
INTERNATIONAL FINANCE LTD

 

Purchaser’s Address: 

HSBC House 

Harcourt Centre 

Harcourt Street 

Dublin 2

 

By: EILEEN RONAYNE 

Title: ALTERNATE DIRECTOR FOR J HENNESSY

 

Contact Person: Eileen Ronayne 

Email Address:eronayne@hudson-advisors.com 

Direct Telephone: + 353 1 4788604

 

Purchaser’s Name: HILLSIDE APEX
FUND LIMITED

 

Purchaser’s
Address: 

c/o
Appleby Corporate Services (Cayman) Limited 

Clifton
House 

75
Fort Street

P.O. Box 1350 GT

Grand Cayman 

Cayman Islands

 

By: ROBERT KING 

Title: DIRECTOR

 

Contact Person: Chris Currington/Michael Mabbutt 

Email Address: ccurrington@thamesriver.co.uk/mmabbutt@thamesriver.co.uk

Direct Telephone: +44 (0) 20 7360 1248/ +44 (0) 20
7360 1245

 

Purchaser’s Name: THAMES RIVER
TRADITIONAL FUND PLC (HIGH INCOME FUND)

 

Purchaser’s Address: 

IFSC House 

International Financial Services Centre 

Dublin 1 

Ireland

 

By: DAVID HAMMOND 

Title: DIRECTOR

 

Contact
Person: Chris Currington/Michael Mabbutt 

Email
Address: ccurrington@thamesriver.co.uk/mmabbutt@thamesriver.co.uk 

Direct
Telephone: +44 (0) 20 7360 1248/ +44 (0) 20 7360 1245

 

16

 

Purchaser’s Name: FIDELITY
INVESTMENT FUNDS ICVC – FIDELITY EXTRA INCOME FUND

 

Purchaser’s Address: 

Oakhill House 

130 Tonbridge Road 

Hildenborough 

Tonbridge 

Kent 

TN11 9DZ

 

	
  By:

  	
  /s/ RICHARD WAISTCOAT

  	
   

  
	
  Title: DIRECTOR

  

 

Contact Person: 

Email Address: 

Direct Telephone:

 

Purchaser’s Name: FIDELITY FUNDS
SICAV – EUROPEAN HIGH YIELD

 

Purchaser’s Address: 

Oakhill House 

130 Tonbridge Road 

Hildenborough 

Tonbridge 

Kent 

TN11 9DZ

 

	
  By:

  	
  /s/ RICHARD WAISTCOAT

  	
   

  
	
  Title: DIRECTOR

  

 

Contact
Person: 

Email
Address: 

Direct
Telephone:

 

17

 

SCHEDULE IA

 

18

 

ANNEX I

 

1                                          The Securities have not been registered
under the Act and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons except in accordance with
Regulation S under the Act or pursuant to an exemption from the registration
requirements of the Act. Each Purchaser represents that it will offer and sell
the Securities as part of their distribution at any time, only in accordance
with Rule 903 of Regulation S or Rule 144A. Accordingly, each
Purchaser agrees that neither it, its affiliates nor any persons acting on its
or their behalf has engaged or will engage in any directed selling efforts with
respect to the Securities, and it and they have complied and will comply with
the offering restrictions requirement of Regulation S. Each Purchaser agrees
that, at or prior to confirmation of sale of Securities (other than a sale
pursuant to Rule 144A), it will have sent to each distributor, dealer or
person receiving a selling concession, fee or other remuneration that purchases
Securities from it during the restricted period a confirmation or notice to
substantially the following effect:

 

“The
Securities covered hereby have not been registered under the U.S. Securities
Act of 1933 (the “Securities Act”) and may not be offered and sold within the
United States or to, or for the account or benefit of, U.S. persons (i) as
part of their distribution at any time or (ii) otherwise until 40 days
after the later of the commencement of the offering and the closing date,
except in either case in accordance with Regulation S (or Rule 144A if
available) under the Securities Act. Terms used above have the meaning given to
them by Regulation S.”

 

Terms used in this
paragraph have the meanings given to them by Regulation S.

 

2                                          Each Purchaser agrees that
it will not offer or sell any of the Securities to persons in the United
Kingdom except to persons whose ordinary activities involve them in acquiring,
holding, managing or disposing of investments (as principal or agent) for the
purposes of their businesses or otherwise in circumstances which have not
resulted and will not result in an offer to the public in the United Kingdom
within the meaning of the Public Offers of Securities Regulations 1995 (as
amended).

 

Each Purchaser agrees that (a) it has
only communicated or caused to be communicated and will only communicate or
cause to be communicated any invitation or inducement to engage in investment
activity (within the meaning of section 21 of the Financial Services and
Markets Act 2000 (the “FSMA”)) received by it in connection with the issue or
sale of any Securities in circumstances in which section 21 (1) of
the FSMA does not apply to the Issuer, and (b) it has complied and will
comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Securities in, from or otherwise involving the United
Kingdom.

 

3                                          Each Purchaser
agrees that it will not offer, sell or deliver any of the Securities in any
jurisdiction outside the United States except under circumstances that will
result in compliance with the applicable laws thereof, and that it will take at
its own expense whatever action is required to permit its purchase and resale
of the Securities in such jurisdictions.

 

19

 

Each
Purchaser understands that no action has been taken to permit a public offering
in any jurisdiction outside the United States where action would be required
for such purpose.

 

20Exhibit 4.6

 

CONFORMED
COPY

 

Dated 20 July 2005

 

for

 

CONCORDIA
BUS AB (PUBL)

 

and

 

CONCORDIA
BUS NORDIC HOLDING AB

 

with

 

DEUTSCHE
BANK LUXEMBOURG S.A.
acting as Facility Agent

 

and with

 

CITICORP
TRUSTEE COMPANY LIMITED
acting as Security Agent

 

 

Mezzanine
Facility Agreement

 

 

CADWALADER

Cadwalader, Wickersham & Taft LLP

265 Strand

London, WC2R 1BH

Tel: +44 (0) 20 7170 8700

Fax: +44 (0) 20 7170 8600

 

 

TABLE OF CONTENTS

 

	
  1

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  THE FACILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  PURPOSE

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  CONDITIONS OF UTILISATION

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  UTILISATION

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  REPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  PREPAYMENT AND CANCELLATION

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  INTEREST PERIODS

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  CHANGES TO THE CALCULATION OF INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  11

  	
  FEES

  	
   

  
	
   

  	
   

  	
   

  
	
  12

  	
  TAX GROSS UP AND INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  13

  	
  INCREASED COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  14

  	
  OTHER INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  15

  	
  MITIGATION BY THE LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  16

  	
  COSTS AND EXPENSES

  	
   

  
	
   

  	
   

  	
   

  
	
  17

  	
  REPRESENTATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  18

  	
  INFORMATION UNDERTAKINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  19

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  20

  	
  DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  21

  	
  CHANGES TO THE LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  22

  	
  CHANGES TO THE OBLIGORS

  	
   

  
	
   

  	
   

  	
   

  
	
  23

  	
  ROLE OF THE AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  24

  	
  SHARING AMONG THE FINANCE PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  25

  	
  PAYMENT MECHANICS

  	
   

  

 

i

 

	
  26

  	
  SET-OFF

  	
   

  
	
   

  	
   

  	
   

  
	
  27

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  28

  	
  CALCULATIONS AND CERTIFICATES

  	
   

  
	
   

  	
   

  	
   

  
	
  29

  	
  PARTIAL INVALIDITY

  	
   

  
	
   

  	
   

  	
   

  
	
  30

  	
  REMEDIES AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  31

  	
  AMENDMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  32

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  33

  	
  GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  34

  	
  ENFORCEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  
	
   

  	
  THE ORIGINAL PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Part I

  	
   

  	
   

  
	
   

  	
  The Borrowers

  	
   

  
	
   

  	
   

  	
   

  
	
  Part II

  	
   

  	
   

  
	
   

  	
  The Original Lenders

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  
	
   

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
  Part IA

  	
   

  
	
   

  	
  Conditions precedent to initial Utilisation
  of Tranche A

  	
   

  
	
   

  	
   

  	
   

  
	
  Part IB

  	
   

  	
   

  
	
   

  	
  [Reserved]

  	
   

  
	
   

  	
   

  	
   

  
	
  Part IC

  	
   

  	
   

  
	
   

  	
  Conditions precedent to initial Utilisation
  of Tranche C

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3

  	
   

  
	
   

  	
  REQUESTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 4

  	
   

  
	
   

  	
  MANDATORY COST FORMULAE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 5

  	
   

  
	
   

  	
  FORM OF TRANSFER CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 6

  	
   

  
	
   

  	
  STRUCTURE PAPER

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 7

  	
   

  

 

ii

 

	
  SCHEDULE 8

  	
   

  
	
   

  	
  FORM OF COMPLIANCE CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 9 – FORMS OF PAYMENT NOTICE

  	
   

  
	
   

  	
  Part I

  	
   

  
	
   

  	
  SSL Account

  	
   

  
	
   

  	
  Interest Payment Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Part II

  	
   

  	
   

  
	
   

  	
  SSL Account

  	
   

  
	
   

  	
  Prepayment / Repayment Notice

  	
   

  

 

iii

 

THIS
AGREEMENT (the “Agreement”) is dated       July 2005
and made between:

 

(1)                                  CONCORDIA BUS AB (PUBL), a company
organised and existing under the laws of Sweden under registered number 556576-4569
with its registered office at Solna Strand väg 78, 17154 Solna, Sweden (“Bus”);

 

(2)                                  CONCORDIA BUS NORDIC HOLDING AB a company
organised and existing under the laws of Sweden under registered number 556028-1122
with its registered office at Solna Strandväg 78, 17154 Solna, Sweden (“Holding”)

 

(3)                                  THE FINANCIAL INSTITUTIONS listed in Part II
of Schedule 1 (The Original Parties)
as lenders (in this capacity, the “Original
Lenders”);

 

(4)                                  DEUTSCHE BANK LUXEMBOURG S.A., a company
organised and existing under the laws of Luxembourg as facility agent for the
other Finance Parties (in this capacity, the “Facility
Agent”); and

 

(5)                                  CITICORP TRUSTEE COMPANY LIMITED, a company
organised and existing under the laws of England and Wales as security agent
for the Lenders (in this capacity, the “Security
Agent”).

 

IT
IS AGREED as follows:

 

SECTION I

INTERPRETATION

 

1              DEFINITIONS
AND INTERPRETATION

 

1.1          Definitions

 

In this
Agreement:

 

“Acceptable Bank” means a commercial bank or
trust company which has a rating of A or higher by Standard & Poor’s
and A-2 or higher by Moody’s for its short-term senior unsecured debt
obligations.

 

“Account Authorisation” means a notice to
the Account Bank in substantially the form set out in Schedule 7 hereto.

 

“Account Bank” means Östgöta Enskilda Bank,
Danske Bank A/S Danmark, Sverige Filial, Kungsholmen Företag, Box 12129,
Fleminggatan 20, S-102 24 Stockholm, Sweden.

 

“Acquired Debt” means,
with respect to any specified Person:

 

(a)                                  Financial
Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person, whether or
not such Financial Indebtedness is incurred in connection with, or in
contemplation of, such other Person merging with or into, or becoming a
Subsidiary of, such specified Person; and

 

 

(b)                                 Financial
Indebtedness assumed, or secured by an encumbrance encumbering any asset
acquired, by such specified Person.

 

“Additional Cost Rate” has the meaning given
to it in Schedule 4 (Mandatory Cost
formulae).

 

“Ad Hoc Committee’s Advisers” shall mean the
Ad Hoc Committee’s Financial Advisers and the Ad Hoc Committee’s Legal
Advisers.

 

“Ad Hoc Committee’s Financial Advisers”
shall mean Houlihan Lokey Howard & Zukin (Europe) Limited.

 

“Ad Hoc Committee’s Legal Advisers” shall
mean Cadwalader, Wickersham & Taft LLP.

 

“Advance” means a Tranche A Advance or a
Tranche C Advance.

 

“Affiliate” of any Person means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such Person. 
For the purposes of this definition, “control”, as used with respect to
any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or
otherwise.  For the purposes of this
definition, the terms “controlling”, “controlled by” and “under common control
with” have correlative meanings.

 

“Agent” means the Facility Agent or the
Security Agent.

 

“Agreed Costs Schedule”
is the schedule of costs produced by Alvarez and Marsal as advisers to
Nordic and agreed by Houlihan Lokey Howard Zukin advisers to the Lenders.

 

“Applicable Accounting Principles” means
such accounting principles, standards and practices as are generally accepted
in the accounting profession in Sweden from time to time, consistently applied.

 

“Asset Sale” means:

 

(a)                                  the
sale, lease, conveyance or other disposition of any assets or rights, other
than sales of inventory (other than buses) in the ordinary course of business
consistent with past practices; provided that the sale, lease, conveyance or
other disposition of all or substantially all of the assets of each Relevant
Company and its respective Restricted Subsidiaries taken as a whole will be
governed by Article 8 and Article 1016 of the Senior Notes Indenture
and not by Clause 19.12 (Limitation on
Certain Asset Sales);

 

(b)                                 the
issuance of Equity Interests by any of the Relevant Company’s Restricted
Subsidiaries or the sale of Equity Interests in any of its Subsidiaries.

 

Notwithstanding
the preceding, the following items will not be deemed to be Asset Sales:

 

3

 

(a)                                  any
single transaction or series of related transactions (other than sales of
buses) that (i) involves assets having a fair market value of less than
SEK 8,000,000 or (ii) results in net proceeds to the Relevant Company and
its Restricted Subsidiaries of less than SEK 8,000,000, and in each case which
when aggregated with the Net Proceeds of all other such disposals does not
exceed SEK 25,000,000;

 

(b)                                 any
transfer of assets between or among the Relevant Company, Nordic and the
Relevant Company’s Wholly Owned Restricted Subsidiaries that are Subsidiary
Guarantors provided that this sub-paragraph (b) does not include any
transfer of assets by Swebus AB or Swebus Busco AB which is not made in
accordance with the terms of the Senior Notes Indenture;

 

(c)                                  an
issuance of Equity Interests by a Wholly Owned Restricted Subsidiary of the
Relevant Company to the Relevant Company or to another Wholly Owned Restricted
Subsidiary of the Relevant Company; and

 

(d)                                 sales
of property or equipment that has become worn-out, obsolete or damaged or
otherwise unsuitable for use in connection with the business of the Relevant
Company or its Restricted Subsidiaries (including, without limitation, buses
that the Relevant Company or its Restricted Subsidiaries determined in good
faith will not meet applicable public transportation authority requirements,
which, if met, would permit such buses to be a part of the fleet utilized in
local public transportation contracts), provided that any dispositions made
pursuant to this parenthetical are made for fair market value (as determined in
good faith by the disposing entity’s board of directors or that entity’s chief
financial officer) and further provided that sub-clause (c) of clause
19.12 (Limitation on Certain Asset Sales)
is complied with.

 

“Attributable Debt” in respect of a Sale and
Leaseback Transaction means, at the time of determination, the present value of
the obligation of the lessee for net rental payments during the remaining term
of the lease included in such Sale and Leaseback Transaction including any
period for which such lease has been extended or may, at the option of the
lessor, be extended. Such present value will be calculated using a discount
rate equal to the rate of interest implicit in such transaction, determined in
accordance with GAAP.

 

“Auditors” means such firm
of accountants as the Relevant Company may appoint.

 

“Authorisation” means a governmental or
regulatory authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration.

 

“Authorised Signatory” means a person
registered with the Swedish Companies Registration Office (Sw. Bolágsvevliet)
as authorised to sign for each of the Borrowers, individually or jointly.

 

“Available Commitment” means in relation to
a Lender and a Facility at any time, and save as otherwise provided herein, its
Commitment in relation to that Facility less the aggregate of its share of the
Advances under that Facility which are then outstanding.

 

4

 

“Available Facility” means in relation to a
Facility, the aggregate for the time being of each Lender’s Available
Commitment in respect of that Facility.

 

“Availability Period” means the Tranche A
Availability Period or the Tranche C Availability Period.

 

“Beneficial Owner” has the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act,
except that in calculating the beneficial ownership of any particular “person”
(as such term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all securities that such “person”
has the right to acquire, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition.

 

“Binding Restructuring Agreement” means the
agreement duly executed by, inter alia, Bus, Holding, Nordic, persons entitled
to enter into commitments in respect of not less than 75% in aggregate principal
amount of the outstanding Subordinated Notes, Goldman Sachs Partners III, L.P.,
Schoyen Gruppen AS and the Borrowers, Nordic and the Senior Group (as defined
therein), setting out, inter alia, the terms and conditions of the
Restructuring.

 

“Borrowers” means the Tranche A Borrower and
the Tranche C Borrower as the context so requires, otherwise, “Borrower” means, until the Tranche A
Advance Utilisation Date, the Tranche C Borrower and, from that date, the
Tranche A Borrower.

 

“Break Costs” means the amount (if any) by
which:

 

(a)                                  the
interest which a Lender should have received for the period from the date of
receipt of all or any part of its participation in an Advance or Unpaid Sum to
the last day of the current Interest Period in respect of that Advance or
Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the
last day of that Interest Period;

 

exceeds:

 

(b)                                 the
amount which that Lender would be able to obtain by placing an amount equal to
the principal amount or Unpaid Sum received by it on deposit with a leading
bank in the Relevant Interbank Market for a period starting on the Business Day
following receipt or recovery and ending on the last day of the current
Interest Period.

 

“Business Day” means a day (other than a
Saturday or Sunday) on which banks are open for general business in Luxembourg
and Stockholm and if on that day a payment in or a purchase of Euros is to be
made, which is also a TARGET Day.

 

“Calculation Date” has the meaning specified
in the definition of Disqualified Share Capital.

 

“Capital Lease Obligation” means, at the
time any determination thereof is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalised on a balance sheet in accordance with GAAP.

 

5

 

“Cash Equivalents”
means:

 

(a)                                  cash
in hand or on deposit with any Acceptable Bank with a maturity of one year or
less;

 

(b)                                 Swedish
Kronor, euro and US dollars;

 

(c)                                  debt
securities issued or directly and fully guaranteed or insured by the government
of Sweden, the United States of America or the United Kingdom or any agency or
instrumentality thereof (provided that the full faith and credit of Sweden, the
United States of America or the United Kingdom, respectively, is pledged in
support thereof) having maturities of not more than six months from the date of
acquisition;

 

(d)                                 certificates
of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case, having a rating
of at least P-1 from Moody’s and A-1 from S&P;

 

(e)                                  repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in (c) and (d) above entered into with any
financial institution authorized to operate in Sweden under Swedish banking
laws whose long term unsecured, unsubordinated debt rating is at least Aa3 by
Moody’s or AA- by S&P;

 

(f)                                    commercial
paper having the highest rating obtainable from Moody’s or S&P and in each
case maturing within six months after the date of acquisition; and

 

(g)                                 money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in Clauses (b) through (f) of this definition.

 

“Cash Interest” means interest calculated by
applying the Cash Margin plus EURIBOR to the outstanding principal amount of
the relevant Advance together with any Mandatory Cost.

 

“Cash Margin” means 6.5 per cent. per annum.

 

“Change of Control” means the occurrence of
any of the following:

 

(a)                                  the
sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially
all of the assets of the Relevant Company and its Subsidiaries taken as a whole
to any “person” (as such term is used in Section 13(d)(3) of the
Exchange Act) other than a Permitted Holder;

 

(b)                                 the
approval by the holders of Share Capital of any Parent Company, the Relevant
Company or Nordic of any plan or proposal for the liquidation or dissolution of
such Parent Company, the Relevant Company or Nordic, as applicable (whether or
not otherwise in compliance with the provisions of this Agreement).

 

6

 

(c)                                  after
the Restructuring any single Person (other than the Permitted Holders) becomes
the Beneficial Owner, directly or indirectly, pursuant to a bona fide
transaction at arm’s length of shares representing more than 35% of the
aggregate ordinary voting power represented by the issued and outstanding Share
Capital of any Parent Company, the Relevant Company or Nordic and the ownership
of such Person in such entity shall exceed that of the Permitted Holders
collectively;

 

(d)                                 the
first day on which a majority of the members of the board of directors of the
Relevant Company are not Continuing Directors of the Relevant Company, or the
first day on which a majority of the members of the board of directors of any
Parent Company are not Continuing Directors of such Parent Company, except as
otherwise agreed between the Lenders and the Relevant Company or Nordic; or

 

(e)                                  the
Relevant Company or Nordic consolidates with, or merges with or into, any
Person, or any Person consolidates with, or merges with or into, the Relevant
Company or Nordic, in any such event pursuant to a transaction in which any of
the outstanding Voting Shares of the Relevant Company, or Nordic are converted
into or exchanged for cash, securities or other property, other than any such
transaction where the Voting Shares of the Relevant Company or Nordic,
outstanding immediately prior to such transaction are converted into or
exchanged for Voting Shares (other than Disqualified Share Capital) of the
surviving or transferee Person constituting a majority of the outstanding
shares of such Voting Shares of such surviving or transferee Person immediately
after giving effect to such issuance.

 

Notwithstanding
the preceding, neither the execution of the Binding Restructuring Agreement,
nor any of the transactions contemplated thereby, including the Restructuring,
shall be considered to be a “Change of
Control”.

 

“Closing Date” means the date on which the
Restructuring closes substantially on the terms of and in accordance with the
Binding Restructuring Agreement.

 

“Collateral” means all collateral securing,
or purported to be securing, directly or indirectly, the Notes, the Note
Guarantees or the obligations to the Senior Note Trustee pursuant to the Senior
Notes Indenture Security Documents.

 

“Commission” means the United States
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

 

“Commitment” means in respect of the
Facility:

 

(a)                                  in
relation to an Original Lender, the Euro amount set opposite its name in Schedule I
Part II (The Original Lenders)
under the headings “Tranche A” and “Tranche C” and the amounts in Euros of any
other Commitment transferred to it under this Agreement; and

 

7

 

(b)                                 in
relation to any other Lender, the Euro amounts of any Commitment transferred to
it under this Agreement,

 

to the extent
not cancelled, reduced or transferred by it under this Agreement.

 

“Compliance Certificate” means a certificate
substantially in the form set out in Schedule 8 (Form of Compliance Certificate).

 

“Compound Interest”
means interest calculated by applying the rate set out in paragraph (b) of
Clause 8.1 (Calculation of interest)
to the outstanding principal amount of the relevant Advance and shall accrue in
accordance with sub-Clause 8.3 (Compound
Interest).

 

“Compound Margin” means
6.5 per cent. per annum.

 

“Consolidated Cashflow” means, with respect
to any Person for any period, the Consolidated Net Income of such Person for
such period:

 

(a)                                  plus an amount equal to any non-recurring
loss plus any net loss realized in connection with an Asset Sale, to the extent
such losses were deducted in computing such Consolidated Net Income, and minus
an amount equal to any extraordinary gain and minus any net gain realized in
connection with an Asset Sale, to the extent such gains were included in
computing such Consolidated Net Income;

 

(b)                                 plus charges classified and reflected as
non-recurring on the date of this Agreement and for any other such period, in
each case, on the Relevant Company’s consolidated financial statements prepared
in accordance with GAAP;

 

(c)                                  plus provision for taxes based on income
or profits of such Person and its Restricted Subsidiaries for such period
(other than income or profits taxes attributable to extraordinary, unusual or
nonrecurring gains or losses or taxes attributable to sales or dispositions
outside the ordinary course of business), to the extent that such provision for
taxes was deducted in computing such Consolidated Net Income;

 

(d)                                 plus consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, amortization of
debt issuance costs and original issue discount, non-cash interest payments,
the interest component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease Obligations, imputed
interest with respect to Attributable Debt, commissions, discounts and other
fees and charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net payments, if any, pursuant to Hedging Obligations), to the
extent that any such expense was deducted in computing such Consolidated Net
Income;

 

(e)                                  plus depreciation, amortization (including
amortization of goodwill and other intangibles but excluding amortization of
prepaid cash expenses that were paid

 

8

 

in a prior
period) and other non-cash expenses (excluding any such non-cash expense to the
extent that it represents an accrual of or reserve for cash expenses in any
future period or amortization of a prepaid cash expense that was paid in a
prior period) of such Person and its Restricted Subsidiaries for such period to
the extent that such depreciation, amortization and other non-cash expenses
were deducted in computing such Consolidated Net Income;

 

(f)                                    minus non-cash items increasing such
Consolidated Net Income for such period, other than items that were accrued in
the ordinary course of business;

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

Notwithstanding
the preceding, the provision for taxes based on the income or profits of, and
the depreciation and amortization and other non-cash charges of, a Restricted
Subsidiary of the Relevant Company will be added to Consolidated Net Income to
compute Consolidated Cash Flow of that Relevant Company only to the extent that
a corresponding amount would be permitted at the date of determination to be
distributed by way of dividend to that Relevant Company by such Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to that
Subsidiary or its shareholders.

 

“Consolidated Net Income” means, with
respect to any specified Person for any period, the aggregate of the Net Income
of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

 

(a)                                  the
Net Income (but not loss) of any Person that is not a Restricted Subsidiary or
that is accounted for by the equity method of accounting will be included only
to the extent of the amount of dividends or distributions paid in cash to the
specified Person or a Wholly Owned Subsidiary thereof;

 

(b)                                 the
Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its
shareholders;

 

(c)                                  the
Net Income of any Person acquired in a pooling of interests transaction for any
period prior to the date of such acquisition will be excluded;

 

(d)                                 the
Net Income (but not loss) of any Unrestricted Subsidiary will be excluded,
whether or not distributed to the specified Person or one of its Subsidiaries;

 

(e)                                  the
cumulative effect of a change in accounting principles will be excluded;

 

(f)                                    any
restoration to income of any contingency reserve of an extraordinary, non-recurring
or unusual nature will be excluded, except to the extent that

 

9

 

provision for
such reserve was made out of Consolidated Net Income accrued in any period for
which Consolidated Net Income is required to be calculated for purposes of this
Agreement; and

 

(g)                                 for
purposes of Clause 19.7 (Limitation on Restricted
Payments) covenant, in the case of a successor to the specified
Person by consolidation or merger or as a transferee of the specified Person’s
assets, any earnings of the successor corporation prior to such consolidation,
merger or transfer of assets will be excluded.

 

“Continuing Directors” means, with respect
to a company, as of any date of determination, any member of the board of
directors of such company who:

 

(a)                                  was
a member of such board of directors on the date of this Agreement; or

 

(b)                                 was
nominated for election or elected to such board of directors with the approval
of a majority or, in the event such nomination or election is made statutorily
by action of the shareholders of or corporate assembly with respect to such
company, with the concurrence of a majority of the Continuing Directors who
were members of such board of directors at the time of such nomination or
election.

 

“Default” means an Event of Default or any
event or circumstance specified in Clause 20 (Default)
which would (with the expiry of a grace period, the giving of notice, the
making of any determination under the Finance Documents or any combination of
any of the foregoing) be an Event of Default.

 

“Designated Website” has the meaning set out
in Clause 27.8 (Use of Websites).

 

“Disqualified Share Capital” means any Share
Capital that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case at the option of the
holder thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
date that is six months after the date on which the Notes mature.  Notwithstanding the preceding sentence, any
Share Capital that would constitute Disqualified Share Capital solely because
the holders thereof have the right to require the Relevant Company to
repurchase such Share Capital upon the occurrence of a change of control or an
asset sale will not constitute Disqualified Share Capital if the terms of such
Share Capital provide that the Relevant Company may not repurchase or redeem
any such Share Capital pursuant to such provisions unless such repurchase or
redemption complies with Clause 19.7 (Limitation
on Restricted Payments).

 

“Environmental Claim” means any claim,
proceeding or investigation by any person in respect of any Environmental Law.

 

“Environmental Laws” means all
international, European Union, national, federal, state or local statutes,
orders, regulations or other law or subordinate legislation or common law or
guidance notes or regulatory codes of practice, circulars and equivalent
controls (whether or not having the force of law, but if not, then in respect
of which compliance is customary) including judicial interpretation of any of
the

 

10

 

foregoing
concerning the environment or health and safety (including without limitation
regulating, relating to or imposing liability on standards of conduct
concerning Hazardous Materials) which are in existence now or in the future and
are binding at any time on any member of the Group in the relevant jurisdiction
in which that member of the Group has been or is operating (including by the
export of its products or its waste to that jurisdiction).

 

“Environmental Permits” means any permit,
licence, consent, approval and other authorisation and the filing of any
notification, report or assessment required under any Environmental Law for the
operation of the business of any member of the Group conducted on or from the
properties owned or used by the relevant member of the Group.

 

“Equity Interests” means Share Capital and
all warrants, options or other rights to purchase or acquire Share Capital (but
excluding any debt security that is convertible into, or exchangeable for,
Share Capital).

 

“EURIBOR” means, in relation to any Advance:

 

(a)                                  the
applicable Screen Rate; or

 

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

 

in each case
as of 11.00 a.m. on the Quotation Day for the offering of deposits in
Euros in an amount equal to the amount for a period comparable to the Interest
Period of that Advance, prepayment or overdue amount.

 

“Event of Default” means any event or
circumstance specified as such in Clause 20 (Default).

 

“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended.

 

“Existing Lender” has the meaning ascribed
to it in Clause 21 (Changes to the Lenders).

 

“Existing Security” means the Security Interests
currently securing, inter alia, Nordic’s obligations under the Notes.

 

“Facility” means the Tranche A Facility and
the Tranche C Facility.

 

“Facility Office” means the office or
offices notified by a Lender to the Facility Agent in writing on or before the
date it becomes a Lender (or, following that date, by not less than five
Business Days’ written notice) as the office or offices through which it will
perform its obligations under this Agreement.

 

“Fee Letter” means any letter or letters
dated on or about the date of this Agreement between the Bus, Holding, Nordic,
the Agents and the Original Lenders setting out any of the fees referred to in
Clause 11 (Fees).

 

11

 

“Final Repayment Date” means 1 February 2010.

 

“Finance Documents” means:

 

(a)           this Agreement;

 

(b)           any Fee Letter;

 

(c)           any Transfer Certificate;

 

(d)           any Security Document

 

(e)                                  the
Facility Agent Fee Letter; and

 

(f)                                    any
other document designated as such by the Facility Agent and the Relevant
Company.

 

“Finance Party” means any Lender, the
Facility Agent and the Security Agent.

 

“Financial Indebtedness” means, with respect
to any specified Person, any indebtedness of such Person, whether or not
contingent:

 

(a)                                  in
respect of borrowed money;

 

(b)                                 evidenced
by bonds, notes, debentures or similar instruments or letters of credit or bank
guarantees (or reimbursement agreements in respect thereof);

 

(c)                                  in
respect of banker’s acceptances;

 

(d)                                 representing
Capital Lease Obligations or Attributable Debt with respect to Sale and
Leaseback transactions;

 

(e)                                  representing
the balance deferred and unpaid of the purchase price of any property, except
any such balance that constitutes an accrued expense or trade payable; or

 

(f)                                    representing
any Hedging Obligations;

 

if and to the
extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability in the balance sheet of the specified
Person prepared in accordance with GAAP. In addition, the term “Financial Indebtedness” includes all
Financial Indebtedness of any other Person secured by a Security Interest on
any asset or property of the specified Person (whether or not such Financial
Indebtedness is assumed by the specified Person) and, to the extent not otherwise
included, the Guarantee by such Person of any indebtedness of any other Person.

 

The amount of
any Financial Indebtedness outstanding as of any date will be:

 

(1)                                  the
accreted value thereof, in the case of any Financial Indebtedness issued with
original issue discount; or

 

12

 

(2)                                  the
principal amount thereof, together with any interest thereon that is more than
30 days past due, in the case of any other Financial Indebtedness.

 

For the
avoidance of doubt, Financial Indebtedness will not include amounts owed under
operating leases that would not be Attributable Debt.

 

“First Ranking Pledge over the Subordinated Shareholder
Loan” means the first ranking pledge granted by Holding in favour of
the Security Agent for the benefit of the Tranche C Lenders over its rights and
interests under the Subordinated Shareholder Loan on or about the date of this
Agreement.

 

“Fixed Charge Coverage Ratio” means with
respect to any specified Person for any period, the ratio of the Consolidated
Cash Flow of such Person and its Restricted Subsidiaries for such period to the
Fixed Charges of such Person for such period. In the event that the specified
Person or any of its Restricted Subsidiaries incurs, assumes, Guarantees or redeems
any Financial Indebtedness (other than revolving credit borrowings) or issues
or redeems Preferred Shares subsequent to the commencement of the period for
which the Fixed Charge Coverage Ratio is being calculated but prior to the date
on which the event for which the calculation of the Fixed Charge Coverage Ratio
is made (the “Calculation Date”),
then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect
to such incurrence, assumption, Guarantee or redemption of Financial Indebtedness,
or such issuance or redemption of Preferred Shares, as if the same had occurred
at the beginning of the applicable four-quarter reference period.

 

In addition,
for purposes of calculating the Fixed Charge Coverage Ratio:

 

(a)                                  acquisitions
that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations and including any
related financing transactions, during the four-quarter reference period or
subsequent to such reference period and on or prior to the Calculation Date
will be deemed to have occurred on the first day of the four-quarter reference
period and Consolidated Cash Flow for such reference period will be calculated
without giving effect to sub-clause (c) of the proviso set forth in the
definition of Consolidated Net Income;

 

(b)                                 the
Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses disposed of prior to the
Calculation Date, will be excluded; and

 

(c)                                  the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses disposed of prior to the
Calculation Date, will be excluded, but only to the extent that the obligations
giving rise to such Fixed Charges will not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date.

 

“Fixed Charges” means, with respect to any
Person for any period, the sum, without duplication, of:

 

(a)                                  the
consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without

 

13

 

limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of letter of credit or
bankers’ acceptance financings, and net payments, if any, pursuant to Hedging
Obligations; plus

 

(b)                                 the
consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period;

 

(c)                                  any
interest expense on Financial Indebtedness of another Person that is guaranteed
by such Person or one of its Restricted Subsidiaries or secured by a Security
Interest on assets of such Person or one of its Restricted Subsidiaries, whether
or not such Guarantee or Security Interest is called upon; plus

 

(d)                                 the
product of (a) all payments (whether by way of dividends, distributions or
advances, and whether or not in cash) (i) in respect of the Subordinated
Shareholder Loan other than interest payments and (ii) on any series of
Preference Shares of such Person or any of its Restricted Subsidiaries, other
than dividend payments on Equity Interests payable solely in Equity Interests
of the Relevant Company (other than Disqualified Share Capital) or to the
Relevant Company or a Restricted Subsidiary of the Relevant Company, times (b) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal, in each case, on a consolidated basis and
in accordance with GAAP.

 

“Free Cash Flow” means Consolidated Cashflow
minus Working Capital Charges and minus the sum of Permitted Investments and
Net Proceeds.

 

“GAAP” means accounting principles and
practices which are (i) generally accepted in Sweden from time to time and
(ii) consistent with the accounting principles applied by the Relevant
Company, and any variation to such accounting principles and practices which is
not material.

 

“Global Note” means a note evidencing all or
a part of all the Notes substantially in the form set forth in the Senior Notes
Indenture.

 

“Group” means the Relevant Company and its
Subsidiaries for the time being, and “member
of the Group” means any one of them.

 

“Guarantee” means a guarantee other than by
endorsement of negotiable instruments for collection in the ordinary course of
business, direct or indirect, in any manner including by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Financial Indebtedness.

 

“Hazardous Materials” means any substance (i) which
is or becomes defined as a “hazardous waste”, “hazardous substance”, “radioactive
waste”, “biohazardous waste”, “infectious waste”, “toxic substance”, pollutant
or contaminant (or any other term or expression intended to define, list or
classify substances by reason of

 

14

 

properties
harmful to health, safety or the environment (including harmful properties such
as ignitability, corrosivity, reactivity, carcinogenicity, toxicity,
reproductive toxicity, reproductive toxicity or words of similar import under
any applicable Environmental Law)) under any Environmental Laws; or (ii) without
limitation, which is or contains petroleum and petroleum products (including
crude oil, natural gas or geothermal resources; any flammable substances or
explosives; any radioactive materials; pesticides; polychlorinated biphenyls;
asbestos; urea formaldehyde foam insulation; radon gas; infectious materials;
or any other chemical, material or substances, exposure to which is prohibited,
limited or regulated by any governmental authority.

 

“Hedging Obligations” means, with respect to
any Person, the obligations of such Person under:

 

(a)                                  any
arrangement with any other Person, whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a floating or a fixed rate of interest on a stated notional
amount in exchange for periodic payments made by such Person calculated by
applying a fixed or a floating rate of interest on the same notional amount
interest rate swap, cap, floors, and collar agreements;

 

(b)                                 any
foreign exchange contract, currency swap agreement or other similar agreement
or arrangement designed to protect the Relevant Company or any Restricted
Subsidiary against fluctuations in currency values; and

 

(c)                                  any
agreement or arrangement designed to protect the Relevant Company or any of its
Restricted Subsidiaries against fluctuations in fuel prices.

 

“Holding Company” means, in relation to a
person, any other person in respect of which it is a Subsidiary.

 

“Increased Cost” has the meaning assigned to
it in Clause 13 (Increased Costs).

 

“Incur” means, with respect to any Financial
Indebtedness or other obligation of any Person, to create, issue, incur (by
conversion, exchange or otherwise), assume, Guarantee or otherwise become
directly or indirectly liable in respect of such Financial Indebtedness or
other obligation including by acquisition of Subsidiaries or the recording, as
required pursuant to GAAP or otherwise, of any such Financial Indebtedness or
other obligation on the balance sheet of such Person (and “Incurrence”, “Incurred”,
“Incurrable” and “Incurring” shall have meanings correlative to the foregoing).

 

“Insolvency Law” means any law applicable to
the insolvency of a Person or the relief of debtors generally and, with respect
to a Swedish company, means in particular the Bankruptcy Act (Sw. Konkurslagen
(1987:672) and the Business Reorganization Act (Sw. lag (1996:764) om
företagsrekonstruktion), in each case as amended from time to time, and any
successor thereto.

 

“Intellectual Property” means all patents and
patent applications, trade and service marks and trade and service mark
applications (and all goodwill associated with such applications), all brand
and trade names, all copyrights and rights in the nature of

 

15

 

copyright, all
design rights, all registered designs and applications for registered designs,
all trade secrets, know how and all other intellectual property rights owned by
members of the Group throughout the world and interests of any member of the
Group in any of the foregoing, and all rights under any agreements entered into
by or for the benefit of any member of the Group relating to the use or
exploitation of any such rights.

 

“Interest Payment Date” means 15 June and
15 December each year and the Final Repayment Date.

 

“Interest Payment Notice” means a notice
substantially in the form set out in Part I of Schedule 9 hereto.

 

“Interest Period” means, in relation to an
Advance, each six month period ending on 15 June and 15 December and,
in relation to an Unpaid Sum, each period determined in accordance with Clause
8.5 (Default Interest).

 

“Intragroup Capital Contribution” means (a) the
portion of the SEK 108,273,353 debt obligation owed by Nordic to the Tranche A
Borrower which is assigned and transferred (in the amount of SEK 80,000,000) by
the Tranche A Borrower to the Tranche C Borrower on or around the date of this
Agreement and/or (b) the remainder of such debt which is not transferred
by the Tranche A Borrower to the Tranche C Borrower, as the context requires..

 

“Investments” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates)
in the forms of direct or indirect loans (including Guarantees of Financial
Indebtedness or other obligations), advances or capital contributions
(excluding commission, travel and similar advances to officers and employees
made in the ordinary course of business), purchases or other acquisitions for
consideration of Financial Indebtedness, Equity Interests or other securities,
together with all items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP. 
If a Relevant Company or any Restricted Subsidiary of that Relevant
Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Restricted Subsidiary of that Relevant Company such that, after giving
effect to any such sale or disposition, such Person is no longer a Restricted
Subsidiary of that Relevant Company, such Relevant Company will be deemed to
have made an Investment on the date of any such sale or disposition equal to
the fair market value of the Equity Interests of such Restricted Subsidiary not
sold or disposed of in an amount determined as provided in Clause 19.7 (Limitation on Restricted Payments).

 

“Joint Venture” means, with respect to any
Person, any corporation, association, partnership or other business entity of
which 50% of the total Voting Shares thereof is owned or controlled, directly
or indirectly, by such Person or one or more Wholly Owned Restricted
Subsidiaries of such Person (or a combination thereof).

 

“Lender” means:

 

(a)                                  any
Original Lender; and

 

16

 

(b)                                 any
bank, financial institution, trust, fund or other entity which has become a
Party in accordance with Clause 21 (Changes
to the Lenders).

 

“LIBOR” means, in relation to any Advance:

 

(a)                                  the
applicable Libor Screen Rate;

 

(b)                                 (if
no Libor Screen Rate is available for Euros for the Interest Period of that
Advance) the arithmetic mean of the rates (rounded upwards to four decimal
places) as supplied to the Facility Agent at its request quoted by the
Reference Banks to leading banks in the London interbank market; or

 

(c)                                  (if
none of the Reference Banks supplies to the Facility Agent a rate for LIBOR in
Euros for the Interest Period of that Advance), the rate notified to the
Facilty Agent by that Lender as soon as practicable and in any event before
interest is due to be paid in respect of that Interest Period, to be that which
express as a percentage rate per annum the cost to that Lender of funding its
participation in that Advance from whatever source it may reasonably select,

 

in each case
as of 11 a.m. (London time) on the Quotation Day for the offering of
deposits in Euros in an amount comparable to the amount of that Advance and for
a period comparable to the Interest Period for that Advance.

 

“Libor Screen Rate” means; in relation to
LIBOR, the rate in Euros displayed on the appropriate page of the Telerate
screen.  If the agreed page is
replaced or service ceases to be available, the Facility Agent may (acting in
good faith) specify another page or service displaying the appropriate
rate after consultation with the relevant Borrower and the Lenders.

 

“Limited Recourse Note” means the note to be
issued by Holding to Bus on a limited recourse basis at the time and in
consideration of the transfer of the Subordinated Shareholder Loan from Bus to
Holding, with a face value equivalent to all sums outstanding including principal
and accrued but unpaid interest on the Subordinated Shareholder Loan at that
time.

 

“Listing” means a listing of all or any part
of the share capital of any member of the Group on the UK Listing Authority or
on any other recognised investment exchange (as defined in the Financial
Services Markets Act 2000) or any other sale or issue by way of floatation or
public offering or any equivalent circumstances in relation to any member of
the Group in any jurisdiction.

 

“Majority Lenders” means, until the Tranche
A Advance Utilisation Date, the Majority Tranche C Lenders, and from that date,
the Majority Tranche A Lenders.

 

“Majority Tranche A Lenders” means:

 

(a)                                  if
there are no Tranche A Advances then outstanding, a Tranche A Lender or Tranche
A Lenders whose Tranche A Commitments aggregate more than 66? per cent. of the
Total Tranche A Commitments (or, if the Total Tranche A Commitments have been
reduced to zero, aggregate more than 66? per cent. of the Total Tranche A
Commitments immediately prior to the reduction); or

 

17

 

(b)                                 at
any other time, a Tranche A Lender or Tranche A Lenders whose participations in
the Tranche A Advances then outstanding aggregate more than 66? per cent. of
all the Tranche A Advances then outstanding.

 

“Majority Tranche C Lenders” means:

 

(a)                                  if
there are no Tranche C Advances then outstanding, a Tranche C Lender or Tranche
C Lenders whose Tranche C Commitments aggregate more than 66? per cent. of the
Total Tranche C Commitments (or, if the Total Tranche C Commitments have been
reduced to zero, aggregate more than 66? per cent. of the Total Commitments
immediately prior to the reduction); or

 

(b)                                 at
any other time, a Tranche C Lender or Tranche C Lenders whose participations in
the Tranche C Advances then outstanding aggregate more than 66? per cent. of
all the Tranche C Advances then outstanding.

 

“Management Services Agreement” means the
agreement dated as of January 14, 2000 among Concordia Bus BV, Concordia
Bus Management AS and Ingenior M.O. Schoyens Bilcentraler AS, a Norwegian
company.

 

“Mandatory Cost” means for a Lender the cost
of complying with any reserve asset, liquidity, cash margin or other regulatory
requirement affecting it, expressed as a percentage rate per annum, including
any reserve asset requirements of the European Central Bank, Regulation D of
the U.S. Board of Governors of the Federal Reserve System and, for a Lender
participating through a Facility Office in the United Kingdom, those calculated
by the Facility Agent in accordance with Schedule 4 (Mandatory Costs).

 

“Margin Stock” has the meaning assigned to
that term in Regulation U of the U.S. Board of Governors of the Federal Reserve
System as in effect from time to time.

 

“Market Disruption Event” means each of the
following has occurred at or about noon (Luxembourg time) on the Quotation Day
for the relevant Interest Period: (i) the Screen Rate is not available and
(ii) none or only one of the Reference Banks supplies a rate to the
Facility Agent to determine EURIBOR for Euros for the Interest Period.

 

“Material Adverse Effect” means an effect,
event, matter or circumstance (or any series of any thereof) which in the
reasonable opinion of the Majority Lenders is or is reasonably likely to
materially and adversely affect:

 

(a)                                  the
business, operations, assets, condition (financial or otherwise) or prospects
of the Relevant Company, and/or the Group taken as a whole;

 

(b)                                 the
ability of an Obligor to perform its obligations under the Finance Documents;
or

 

(c)                                  the
validity or enforceability of the Finance Documents,

 

provided that
any effect, event, matter or circumstance that relates to a matter disclosed to
the Ad Hoc Committee’s Advisers prior to the date of this Agreement shall be
disregarded for the purposes of this definition;

 

18

 

“Month” means a period starting on one day
in a calendar month and ending on the numerically corresponding day in the next
calendar month, except that:

 

(a)                                  (subject
to paragraph (c) below) if the numerically corresponding day is not a
Business Day, that period shall end on the next Business Day in that calendar
month in which that period is to end if there is one, or if there is not, on
the immediately preceding Business Day;

 

(b)                                 if
there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that
calendar month; and

 

(c)                                  if
an Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.

 

The above rules will
only apply to the last Month of any period.

 

“Net Income” means, with respect to any
Person, the net income (loss) of such Person and its Restricted Subsidiaries,
determined in accordance with GAAP and before any reduction in respect of
preferred share dividends, excluding, however:

 

(a)                                  any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: (i) any Asset Sale; or (ii) the
disposition of any securities by such Person or any of its Restricted
Subsidiaries or the extinguishment of any Financial Indebtedness of such Person
or any of its Restricted Subsidiaries; and

 

(b)                                 any
extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss).

 

“Net Proceeds” means the aggregate cash
proceeds received by the Relevant Company or any of its Restricted Subsidiaries
in respect of any Asset Sale (including any cash received upon the sale or
other disposition of any non-cash consideration received in any Asset Sale),
net of the direct costs relating to such Asset Sale paid in cash, including,
without limitation, legal, accounting and investment banking fees, and sales
commissions, and any relocation expenses incurred as a result thereof, taxes
paid or payable as a result thereof, in each case after taking into account any
available tax credits or deductions and any tax sharing arrangements and
amounts required to be applied to the repayment of Financial Indebtedness
secured by a Security Interest on the asset or assets that were the subject of
such Asset Sale.

 

“New Lender” has the meaning assigned to it
in Clause 21 (Changes to the Lenders).

 

“Non-Recourse Debt” means Financial
Indebtedness:

 

(a)                                  as
to which neither the Relevant Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument that
would constitute Financial Indebtedness), (b) is directly or indirectly
liable as a guarantor or otherwise, or (c) constitutes the lender;

 

19

 

(b)                                 no
default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Financial
Indebtedness (other than the Senior Notes as amended) of the Relevant Company
or any of its Restricted Subsidiaries to declare a default on such other
Financial Indebtedness or cause the payment thereof to be accelerated or
payable prior to its stated maturity; and

 

(c)                                  as
to which the lenders have been notified in writing that they will not have any
recourse to the shares or assets of the Relevant Company or any of its
Restricted Subsidiaries.

 

“Nordic” means Concordia Bus Nordic AB
(publ).

 

“Notes” means the €130,000,000.00 9.125%
Senior Secured Notes due 1 August 2009 issued pursuant to the Senior Notes
Indenture.

 

“Note Guarantees” means the guarantee in
favour of the Notes given by a Note Guarantor pursuant to the Senior Notes
Indenture.

 

“Note Guarantors” means the guarantors under
the Senior Notes Indenture.

 

“Obligations” means any principal, interest,
penalties, fees, expenses, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Financial
Indebtedness.

 

“Obligors” means the Tranche A Borrower and
the Tranche C Borrower as the context so requires, otherwise, “Obligor” means until the Tranche A Advance
Utilisation Date, the Tranche C Borrower and from that date the Tranche A
Borrower.

 

“Officer’s Certificate” means, with respect
to any Person, a certificate signed by an Authorized Signatory of such Person.

 

“Original Financial Statements” means in
relation to the Relevant Company, the audited consolidated financial statements
of the Group for the financial year ended 28 February.

 

“Original Lenders” means the Financial institutions
listed in Part II of Schedule 1 hereto.

 

“Paper Form Lender” has the meaning set
out in Clause 27.8 (Use of Websites).

 

“Parent Companies” means Concordia Bus
Holding AB and until the initial drawdown of Tranche A, Concordia Bus AB.

 

“Participating Member State” means any
member state of the European Communities that adopts or has adopted the Euro as
its lawful currency in accordance with legislation of the European Community
relating to Economic and Monetary Union.

 

“Party” means a party to this Agreement; provided
that a reference to such a party shall not include that party if it has ceased
to be a party under this Agreement.

 

20

 

“Payment Date” has the meaning assigned to
it in Clause 7.5 (Prepayments during
Interest Periods).

 

“Permitted Business” means the business of
providing public transportation services in the Nordic Region and Europe
(including the Baltic States) and businesses ancillary or reasonably related or
similar thereto.

 

“Permitted Holders” means the Consenting
Noteholders (as that term is defined in the Binding Restructuring Agreement)
who become shareholders of Bus, and each of their respective Affiliates.

 

“Permitted Investments” means:

 

(a)                                  any
Investment in the Relevant Company or Nordic by any Restricted Subsidiary of
the Relevant Company, provided that any Financial Indebtedness evidencing such
Investment is unsecured and subordinated, pursuant to a written agreement, to
the Relevant Company’s obligations under the Notes and this Agreement;

 

(b)                                 any
Investment by either Bus or Holding in any of its Subsidiaries by way of equity
or shareholders’ contribution or subordinated loans or in any manner permitted
by applicable laws.

 

(c)                                  any
Investment by the Relevant Company or any Restricted Subsidiary of the Relevant
Company in a Person primarily engaged in Permitted Business, if (a) such
Person is or, as a result of such Investment becomes, a Restricted Subsidiary
of the Relevant Company; or (b) such Person is merged, consolidated or
amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Relevant Company or the Restricted
Subsidiary of the Relevant Company;

 

(d)                                 any
Investment made as a result of the receipt of non-Cash Equivalent consideration
from an Asset Sale that was made pursuant to and in compliance with Clause
19.12 (Limitation on Certain Asset Sales);

 

(e)                                  any
Investment in Cash Equivalents;

 

(f)                                    Investments
in securities of trade creditors or customers received in settlement of
obligations or pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of such trade creditors of customers;

 

(g)                                 loans
and advances to directors, officers and employees of the Relevant Company and
its Restricted Subsidiaries in the ordinary course of business for bona fide
business purposes not in excess of an aggregate SEK 3 million at any one time
outstanding;

 

(h)                                 Hedging
Obligations entered into in the ordinary course of business and not for
speculative purposes;

 

(i)                                     investments
in prepaid expenses, negotiable instruments held for collection, and lease,
utility and workers’ compensation, performance and other similar deposits;

 

21

 

(j)                                     any
prepayments on operating leases;

 

(k)                                  any
Permitted Joint Venture Investment, provided that the consideration paid or
payable for such Investment, when aggregated with the consideration paid or
payable (measured on the date each such Investment was made and without giving
effect to subsequent changes in value) for all other Investments comprising
Permitted Joint Venture Investments made pursuant to this clause (k) does not
exceed the amount, calculated at the time such Investment is made, equal to (a) 25.0%
of the Consolidated Cash Flow of the Relevant Company for the period (taken as
one accounting period) from the date of this Agreement to the end of the
Relevant Company’s most recently ended fiscal quarter for which financial
statements are available at the time of such Investment, if such Consolidated
Cash Flow for such period is a positive amount, plus (b) 100% of the
aggregate of (i) the net cash proceeds and (ii) the fair market value
of Strategic Assets transferred or conveyed to the Relevant Company or its
Restricted Subsidiaries (as valued at the time of transfer or conveyance to the
Relevant Company or its Restricted Subsidiaries, and as determined in good
faith by the board of directors of the Relevant Company or its Restricted
Subsidiaries and evidenced by a resolution of such board), in each case
received by the Relevant Company or its Restricted Subsidiaries at the time of
or concurrently with such Investment as a contribution to the Relevant Company’s
or its Restricted Subsidiaries’ common equity capital, provided that the amount
of such net cash proceeds and the fair market value of such Strategic Assets
will be excluded from (a)(iv)(C)(II) of Clause 19.7 (Limitation of Restricted Payments);

 

(l)                                     any
Permitted Minority Investment, provided that the consideration paid or payable
for such Investment, when aggregated with the consideration paid or payable
(measured on the date each such Investment was made and without giving effect
to subsequent changes in value) for all other Investments comprising Permitted
Minority Investments made pursuant to this clause (l) does not exceed the
amount, calculated at the time such Investment is made, equal to (a) 7.5%
of the Consolidated Cash Flow of the Relevant Company for the period (taken as
one accounting period) from the date of this Agreement to the end of the
Relevant Company’s most recently ended fiscal quarter for which financial
statements are available at the time of such Investment, if such Consolidated
Cash Flow for such period is a positive amount, plus (b) 100% of the
aggregate of (i) the net cash proceeds and (ii) the fair market value
of Strategic Assets transferred or conveyed to the Relevant Company or its
Restricted Subsidiaries (as valued at the time of transfer or conveyance to the
Relevant Company or its Restricted Subsidiaries, and as determined in good
faith by the board of directors of the Relevant Company or its Restricted
Subsidiaries and evidenced by a resolution of such board), in each case
received by the Relevant Company or its Restricted Subsidiaries at the time of
or concurrently with such Investment as a contribution to the Relevant Company’s
or its Restricted Subsidiaries’ common equity capital, provided that the amount
of such net cash proceeds and the fair market value of such Strategic Assets will
be excluded from (a)(iv)(C)(II) of Clause 19.7 (Limitation on Restricted Payments);

 

22

 

(m)                               any
other Investment in any Person having a fair market value (measured on the date
such Investment was made and without giving effect to subsequent changes in
value) not to exceed the sum of (i) SEK 10,000,000 minus (ii) aggregate
fair market value (measured on the date each such Investment was made and
without giving effect to subsequent changes in value) of all other Investments
made pursuant to this clause (m) since the date of this Agreement plus (iii) to
the extent that any such Investment made pursuant to this clause (m) is sold
for Cash Equivalents or otherwise liquidated or repaid for Cash Equivalents,
the lesser of (A) the cash return of capital with respect to such
Investment (less the cost of disposition, if any) and (B) the initial
amount of such other Investment; and

 

(n)                                 any
acquisitions of assets solely in exchange for the issuance of Equity Interests
(other than Disqualified Share Capital) of the Relevant Company.

 

“Permitted Joint Venture Investment” means
the Investment by the Relevant Company or one or more Wholly Owned Restricted
Subsidiaries of the Relevant Company in a Joint Venture; provided that, in any
such case, such Joint Venture shall be engaged primarily in a Permitted
Business.

 

“Permitted Minority Investment” means the
Investment by the Relevant Company or by a Wholly Owned Restricted Subsidiary
of the Relevant Company in any corporation, association, partnership or other
business entity of which less than 50% of the total Voting Shares thereof will,
upon consummation of such acquisition or other Investment, be owned or
controlled by the Relevant Company or one or more of the Wholly Owned
Restricted Subsidiaries of the Relevant Company (or a combination thereof), but
over which the Relevant Company or one or more Wholly Owned Restricted
Subsidiaries of the Relevant Company (or a combination thereof) maintains the
power to influence or participate in the management thereof by virtue of
representation on such corporation’s, association’s, partnership’s or other
business entity’s board of directors (or persons performing similar functions)
through a contractual relationship with such entity or with the holders of such
entity’s Voting Shares; provided that, in any such case, such corporation,
association, partnership or other business entity shall be engaged primarily in
a Permitted Business.

 

“Permitted Refinancing Indebtedness” means
any Financial Indebtedness of the Relevant Company or its Restricted
Subsidiaries issued in exchange for, or the net proceeds of which are used to
extend, refinance, renew, replace, defease or refund other Financial
Indebtedness of the Relevant Company or its Restricted Subsidiaries (other than
intercompany Financial Indebtedness owed to any of the Relevant Company’s
Subsidiaries); provided that:

 

(a)                                  the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount of (or accreted
value, if applicable), plus accrued interest on, the Financial Indebtedness so
extended, refinanced, renewed, replaced, defeased or refunded (plus the amount
of reasonable expenses incurred in connection therewith); and

 

(b)                                 such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Financial

 

23

 

Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded; and

 

(c)                                  if
the Financial Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the Notes, such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and is subordinated in right of payment to, the Notes
on terms at least as favourable to the holders of the Notes as those contained in
the documentation governing the Financial Indebtedness being extended,
refinanced renewed, replaced, defeased or refunded.

 

“Permitted Security Interests” means:

 

(a)                                  Security
Interests existing on the date of this Agreement.

 

(b)                                 Security
Interests to secure Financial Indebtedness incurred under a Revolving Credit
Facility permitted by Clause 19.6(b)(vi), provided that (a) such Security
Interests consist solely of security interests in accounts receivable (and
related assets); (b) the aggregate nominal value of all such accounts
receivable is not more than the amount outstanding under the Revolving Credit
Facility at the time such Security Interest is created; (c) such Security
Interests rank pari passu with or
are subordinated to the Security Interests with respect to the Notes and (d) such
Security Interests do not exceed, in aggregate, SEK 100,000,000;

 

(c)                                  Security
Interests created under the Senior Notes Indenture Security Documents;

 

(d)                                 Security
Interests to secure Permitted Refinancing Debt incurred to refinance Financial
Indebtedness that was previously so secured; provided that such Security
Interests do not extend to cover any property or assets of the Relevant Company
or any Restricted Subsidiaries other than that pledged under the Security Interests
securing the Financial Indebtedness being refinanced;

 

(e)                                  Security
Interests in favour of the Relevant Company or a Wholly Owned Restricted
Subsidiary of the Relevant Company that is a Subsidiary Guarantor;

 

(f)                                    Security
Interests on property of a Person existing at the time such Person is merged
with or into or consolidated with the Relevant Company or any Restricted
Subsidiary of the Relevant Company; provided that such Security Interests were
in existence prior to the contemplation of such merger or consolidation and do
not extend to any assets other than those of the Person merged into or
consolidated with the Relevant Company or the Restricted Subsidiary;

 

(g)                                 Security
Interests on property existing at the time of acquisition thereof by the Relevant
Company or any Restricted Subsidiary of the Relevant Company, provided that
such Security Interests were in existence prior to the contemplation of such
acquisition;

 

24

 

(h)                                 Security
Interests to secure the performance of tenders or bids, government contracts or
concessions, statutory obligations, surety or appeal bonds, performance bonds
or other obligations of a like nature (other than obligations in respect of
borrowed money) incurred in the ordinary course of business;

 

(i)                                     Security
Interests to secure Financial Indebtedness incurred under (i) Capital
Lease Obligations, mortgage financing or purchase money obligations in each
case for the purpose of financing all or any part of the purchase price or cost
of construction or improvement of any property, plant or equipment or buses or
other vehicles used in the business of the Group and (ii) Attributable
Debt in respect of Sale and Leaseback transactions, provided that such Security
Interests incurred pursuant to (i) and (ii) shall not exceed, in
aggregate SEK 100,000,000;

 

(j)                                     Security
Interests for taxes, assessments or governmental charges or claims that are not
yet delinquent or that are being contested in good faith by appropriate
proceedings promptly instituted and diligently concluded, provided that any
reserve or other appropriate provision as will be required in conformity with
GAAP will have been made therefor;

 

(k)                                  statutory
Security Interests of landlords and Security Interests of carriers, warehousemen,
mechanics, suppliers, materialmen, repairmen and other Security Interests
imposed by law incurred in the ordinary course of business for sums not yet
delinquent or being contested in good faith, if such reserve or other
appropriate provision, if any, as shall be required by GAAP shall have been
made in respect thereof;

 

(l)                                     Security
Interests incurred or deposits made in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types
of social security, including any Security Interests securing letters of credit
issued in the ordinary course of business in connection therewith;

 

(m)                               Security
Interests arising out of or related to judgments not giving rise to an Event of
Default so long as such Security Interests is adequately bonded and any
appropriate legal proceedings which may have been duly initiated for review of
such judgment shall not have been finally terminated or the period within which
such proceedings may be initiated shall not have expired;

 

(n)                                 easements,
rights-of-way, zoning restrictions and other similar charges or Security
Interests in respect of real property not interfering in any material respect
with the ordinary conduct of the business of the Relevant Company or any of its
Restricted Subsidiaries;

 

(o)                                 Security
Interests upon specific items of inventory or other goods and proceeds of any
Person securing such Person’s obligations in respect of bankers’ acceptances
issued or created for the account of such Person to facilitate the purchase,
shipment or storage of such inventory or other goods;

 

(p)                                 Security
Interests securing reimbursement obligations with respect to commercial letters
of credit which encumber documents and other property relating to such letters
of credit and products and proceeds thereof;

 

25

 

(q)                                 Security
Interests encumbering deposits made to secure obligations arising from
statutory, regulatory, contractual or warranty requirements of the Relevant
Company or any of its Restricted Subsidiaries, including rights of offset and
set-off;

 

(r)                                    Security
Interests incurred in the ordinary course of business of the Relevant Company
or any Restricted Subsidiary with respect to obligations that do not exceed SEK
150,000,000 at any one time
outstanding less the amount of any Financial Indebtedness secured by Security
Interests granted pursuant to Clause (a) of this definition;

 

(s)                                  Security
Interests created or to be created under or pursuant to the Security Documents;
and

 

(t)                                    Second
ranking Security Interests granted by Holdings in favour of Bus over Holding’s
interests in the Subordinated Shareholder Loan and the Intragroup Capital
Contribution.

 

“Person” means an individual, partnership,
limited partnership, company, corporation, limited liability company, joint
stock company, joint venture, association, trust, business trust,
unincorporated organization, or a government or agency or political subdivision
thereof.

 

“Preferred Shares” of any Person means any
Share Capital of such Person that has any rights which are preferential to the
rights of any other Share Capital of such Person with respect to dividends or
redemptions or upon liquidation.

 

“Public Equity Offering” means any
underwritten public offering of Share Capital (other than Disqualified Share
Capital) of the Relevant Company or Nordic, in which (a) the gross
proceeds to the Relevant Company or Nordic, respectively, are at least €50
million and (b) with respect to an offering other than by Nordic, the
proceeds of which are contributed to Nordic, directly or indirectly, in the
form of a subscription for, or capital contribution in respect of, Share
Capital in Nordic that is not Redeemable Share Capital.

 

“Quotation Day” means, in relation to any
period for which an interest rate is to be determined, two TARGET Days before
the first day of that period, unless market practice differs in the Relevant
Interbank Market for a currency, in which case the Quotation Day for that
currency will be determined by the Facility 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 Quotation Day will be the last of those days).

 

“Receivables” means, with respect to any
person, all rights of that person to payment for goods sold or leased or for
services rendered, whether or not they have been earned by performance, and
includes all book debts due to that person.

 

“Redeemable Share Capital” means any Share
Capital that, either by its terms or by the terms of any security into which it
is convertible or exchangeable or otherwise, is or upon the happening of an
event or the passage of time would be, required to be redeemed prior to the
final stated maturity of the principal of the Notes or is

 

26

 

redeemable at
the option of the holder thereof at any time prior to such final stated
maturity (other than upon a change of control of Nordic in circumstances where
holders of the Notes would have similar rights), or is convertible into or
exchangeable for debt securities at any time prior to such final stated
maturity at the option of the holder thereof.

 

“Reference Banks” means, in relation to
LIBOR, the principal London office of Royal Bank of Scotland plc, Barclays Bank
plc and JPMorgan Chase Bank, N.A. or such other banks as may be appointed by
the Facility Agent in consultation with the relevant Borrower.

 

“Reference Banks” means in relation to
EURIBOR, Deutsche Bank Luxembourg S.A. and the principal office in London of
Credit Suisse and JPMorgan Chase Bank, N.A., or (in any such case) such other
banks as may be appointed by the Facility Agent in consultation with the
relevant Borrower.

 

“Released Person” means (i) each of Schoyen
Gruppen AS, Goldman, Sachs & Co. Verwaltungs GmbH, GS Capital Partners
III Offshore, L.P. And GS Capital Partners III, L.P. and their respective
Affiliates, Concordia Bus BV and Concordia Bus Holding AB (ii) each of the
Honourable Richard Simon Sharp and Steven Richard Sher of Goldman Sachs, Frode
Larsen and Harald Aernkvaern of Schoyen, whether personally or in their
capacities as existing or former directors of Bus and/or Holding and/or Bus’
subsidiaries, and (iii) Frode Larsen and Harald Aernkvaern in relation to
their existing directorships of other companies in the Group.

 

“Relevant Company” means until the Tranche A Advance Utilisation Date, the
Tranche C Borrower and from the Tranche A Advance Utilisation Date, the
Tranche A Borrower.

 

“Relevant Interbank Market” means the
European interbank market.

 

“Repayment Notice”
means a notice substantially in the form set out in Part II or Part IV
of Schedule 9 hereto.

 

“Repeating Representations” means each of
the representations set out in Clauses 17.1 (Status)
to 17.6 (Governing law and enforcement).

 

“Representative” shall mean in respect of
the parties hereto any directors, agents, officers, employees and/or
professional advisers.

 

“Reservations” means the principles that
equitable remedies are remedies which may be granted or refused at the
discretion of the court, the limitation of enforcement by laws relating to
bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria,
administration and other laws generally affecting the rights of creditors, and
the time barring of claims under any applicable limitation acts.

 

“Residual Value Guarantee” means a
commitment by a bus manufacturer or finance company (or an affiliated entity)
to repurchase buses from, or on behalf of, a bus operator according to a
Specified Residual Value

 

“Restricted Investments” means an Investment
other than a Permitted Investment.

 

27

 

“Restricted Payments” has the meaning given
to it in Clause 19.7.

 

“Restricted Subsidiary” of a Person means any Subsidiary of
such Person that is not an Unrestricted Subsidiary.  For the avoidance of doubt Nordic shall be
deemed to be a Restricted Subsidiary for the purposes of this Agreement.

 

“Restructuring” means the exchange of the Subordinated Notes for ordinary shares
of Bus representing on a primary basis at least 97.5% of the ordinary share
capital of the company, substantially pursuant to the terms and conditions of
the Binding Restructuring Agreement.

 

“Revolving Credit Facilities” means with
respect to the Relevant Company or its Subsidiaries, one or more debt
facilities or commercial paper facilities with banks, insurance companies or
other institutional lenders providing for revolving credit loans, receivables
financing (including through the sale or factoring of receivables to such
lenders or to special purpose entities formed to borrow from or issue
securities to such lenders against such receivables), letters of credit or
other forms of guarantees and assurances or other credit facilities, including
overdrafts, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time, provided,
however, that “Revolving Credit Facilities”
will not mean any Financial Indebtedness that expressly provides that it is
subordinated in right of payment to any other Financial Indebtedness.

 

“Sale and Leaseback Transaction” means any
direct or indirect arrangement with any Person or to which any such Person is a
party, providing for the leasing to the Relevant Company or a Restricted
Subsidiary of any property, whether owned by the Relevant Company or any
Restricted Subsidiary on the date of this Agreement or later acquired, which
has been or is to be sold or transferred by the Relevant Company or such
Restricted Subsidiary to such Person or to any other Person from whom funds
have been or are to be advanced by such person on the security of such property;
provided, however, that the term “Sale and Leaseback” shall not include the
sale of (a) all or a portion of the depots currently held by Swebus
Fastigheter AB or its subsidiaries or (b) the shares of Swebus Fastigheter
AB or any of its subsidiaries, if substantially simultaneously with such sale,
the Relevant Company or a Restricted Subsidiary leases on a long-term basis all
or substantially all of (i) in the case of such a sale of depots, the
depots so sold or (ii) in the event of such a sale of shares of Swebus
Fastigheter AB or any of its subsidiaries, the depots that comprise all or
substantially all of the assets of Swebus Fastigheter AB or such subsidiary.

 

“Screen Rate” means in relation to EURIBOR,
the percentage rate per annum determined by the Banking Federation of the
European Union for the relevant period displayed on the appropriate page of
the Telerate screen selected by the Facility Agent (acting reasonably).  If the relevant page is replaced or
service ceases to be available, the Facility Agent may specify another page and/or
service displaying the appropriate rate after consultation with the Relevant
Company and the Lenders.

 

“Second Ranking Pledge over the Subordinated
Shareholder Loan” means the second ranking pledge granted by Holding
in favour of Bus over its rights and interests under the Subordinated
Shareholder Loan on or about the date of this Agreement.

 

28

 

“Security Documents” means:

 

(a)                                  each
security document referred to in Part I of Schedule 2; and

 

(b)                                 any
other document entered into by any member of the Group creating or evidencing a
Security Interest for all or any part of the obligation of the Obligor or any
of them under any of the Finance Documents.

 

“Security Interest” means a mortgage, charge
(fixed or floating), standard security, pledge, lien, assignment for security,
hypothecation, right of set-off, reservation of title or security interest or
any other agreement, trust or arrangement (including, without limitation, a
sale and repurchase agreement) having a similar effect and any agreement to
enter into, create or establish any of the foregoing.

 

“Senior Notes Indenture”
means the indenture dated 22 January 2004 in respect of the Notes, as may
be amended from time to time.

 

“Senior Notes Indenture Security Documents”
means the security documents executed in relation to the security in connection
with the Senior Notes Indenture.

 

“Senior Notes Trustee” means the trustee for
the Notes.

 

“Share Capital” means:

 

(a)           in the case of a corporation,
corporate stock and shares;

 

(b)                                 in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock and shares;

 

(c)                                  in
the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

 

(d)                                 any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

 

“Specified Residual Value” means the
guaranteed value of a bus according to a schedule in the Residual Value
Guarantee that identifies fixed prices for value of buses based on bus age and
condition at future specified dates. This value is correlated to expected
used-bus resale values.

 

“SSL Account” means account number EUR 1345-01-11647
(IBAN: SE6912000000013450111647) (SWIFT code: DABASESX)  held with the Account Bank in the name of the
Tranche C Borrower, or such other account as may be substituted for that
account in accordance with the terms of Clause 7.8(h).

 

“Stated Maturity” means, with respect to any
instalment of interest or principal on any Financial Indebtedness, the date on
which such payment of interest or principal was scheduled to be paid in the
original documentation governing such Financial Indebtedness, and shall not
include any contingent obligations to repay, redeem or

 

29

 

repurchase any
such interest or principal prior to the date originally scheduled for the
payment thereof.

 

“Strategic Assets” means (i) Share
Capital of a Person which is engaged primarily in a Permitted Business and (ii) property,
plant, equipment, buses and other assets, real or personal, tangible or
intangible, the use of which is necessary or useful in the conduct of the
business and operations of the Relevant Company and its Subsidiaries at the
time the same are transferred or conveyed to the Relevant Company or its
Restricted Subsidiaries.

 

“Structure Paper” means the Structure Paper
agreed between the Borrowers and the Lenders on or about the date hereof and
attached as Schedule 6 hereto.

 

“Subordinated Notes” means the EUR
160,000,000 11% Senior Subordinated Notes due 2010 issued by Concordia Bus AB.

 

“Subordinated Notes Indenture” means the
indenture dated 7 February 2000 in respect of the Subordinated Notes.

 

“Subordinated Shareholder Loan” means the
loan from Bus to Nordic in an original principal amount of SEK 501.3 million,
made pursuant to a subordinated loan agreement executed on February 28,
2002 and amended and restated and transferred to Holding on the date of this
Agreement and which will be re-transferred from Holding to Bus on or before the
Tranche A Advance Utilisation Date.

 

“Subsidiary” means :

 

(a)                                  a
subsidiary within the meaning of section 736 of the Companies Act 1985;
and

 

(b)                                 a
subsidiary undertaking within the meaning of section 258 of the Companies
Act 1985.

 

“Subsidiary Guarantor” means a guarantor
under the Senior Notes Indenture and Nordic (unless otherwise specified).

 

“TARGET Day” means any day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer payment
system is open for the settlement of payments in Euro.

 

“Tax” means any tax, levy, impost, duty or
other charge or deduction or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay
in paying any of the same).

 

“Tax Deduction” means a deduction or
withholding for or on account of Tax from a payment under a Finance Document.

 

“Taxes Act” means the Income and Corporation
Taxes Act 1988.

 

“Total Commitments” means the Total Tranche
A Commitments and the Total Tranche C Commitments.

 

30

 

“Total Tranche A Commitments” means the
Tranche A Commitments of all Tranche A Lenders, being EUR 45,000,000 at the
date of this Agreement.

 

“Total Tranche C Commitments” means the
Tranche C Commitments of all Tranche C Lenders being EUR 25,000,000 at the date
of this Agreement.

 

“Tranche A Advance” means the principal
amount of the loan made or to be made under the Tranche A Facility as from time
to time reduced by any repayment or prepayment and as from time to time
increased by interest accruing to the principal amount of the Tranche A
Facility pursuant to Clause 8 (Interest).

 

“Tranche A Advance Utilisation Date” means
the date of Utilisation of Tranche A, being the date on which the Tranche A
Advance is made or to be made, as the context requires.

 

“Tranche A Availability Date” means the
Closing Date.

 

“Tranche A Availability Period” means the
period from and including the Closing Date to and including the date which is
10 days after the Closing Date.

 

“Tranche A Borrower” means Bus.

 

“Tranche A Call Option Premium” has the
meaning set out in Clauses 7.3 (Voluntary
Prepayment of Tranche A and Tranche C).

 

“Tranche A Commitment” means:

 

(a)                                  in
relation to an Original Lender, the amount set below its name adjacent to the
heading “Tranche A Commitment” in Part II of Schedule 1 hereto (the Original Lenders) and the amount of
any other Tranche A Commitment transferred to it under this Agreement; and

 

(b)                                 in
relation to any other Lender, the amount of any Tranche A Commitment
transferred to it under this Agreement,

 

each to the
extent not cancelled, reduced or transferred under this Agreement.

 

“Tranche A Facility” or “Tranche A”
means the term loan facility to be made available by the Tranche A Facility
Lenders pursuant to Clause 2.1(a) (Tranche
A Facility).

 

“Tranche A Lenders” means those Original
Lenders providing Tranche A Commitments in Part II of Schedule 1
hereto.

 

“Tranche C Advance” means the principal
amount of each loan made or to be made under the Tranche C Facility as from
time to time reduced by any repayment or prepayment and as from time to time
increased by interest accruing to the principal amount of the Tranche C
Facility and capitalised pursuant to Clause 8 (Interest).

 

“Tranche C Advance Utilisation Date” means
the date of Utilisation of Tranche C, being the date on which a Tranche C
Advance is made or to be made, as the context requires.

 

31

 

“Tranche C Availability Period” means in
relation to the Tranche C Facility, the period from and including the date of
this Agreement to and including the earlier of (i) the Closing Date and (ii) 31
December 2005 (or such later date as may be agreed between the parties
hereto, each acting reasonably).

 

“Tranche C Borrower” means Holding.

 

“Tranche C Call Option Premium” has the
meaning set out in Clauses 7.3 (Voluntary
Prepayment of Tranche A and Tranche C).

 

“Tranche C Commitment” means:

 

(a)                                  in
relation to an Original Lender, the amount set below its name adjacent to the
heading “Tranche C Commitment” in Part II of Schedule 1 hereto (the Original Lenders) and the amount of
any other Tranche C Commitment transferred to it under this Agreement; and

 

(b)                                 in
relation to any other Lender, the amount of any Tranche C Commitment
transferred to it under this Agreement,

 

each to the
extent not cancelled, reduced or transferred under this Agreement.

 

“Tranche C Facility” or “Tranche C”
means the term loan facility to be made available by the Tranche C Facility
Lenders pursuant to Clause 2.1(b) (Tranche
C Facility).

 

“Tranche C Lenders” means those Original
Lenders providing Tranche C Commitments in Part II of Schedule 1
hereto.

 

“Transfer Certificate” means a certificate
substantially in the form set out in Schedule 5 (Form of Transfer Certificates) or any
other form agreed between the Facility Agent and the relevant Borrower.

 

“Transfer Date” means, in relation to a
transfer, the later of:

 

(a)                                  the
proposed Transfer Date specified in the Transfer Certificate; and

 

(b)                                 the
date on which the Facility Agent executes the Transfer Certificate.

 

“Unpaid Sum” means any sum due and payable
but unpaid by an Obligor under the Finance Documents.

 

“Unrestricted Subsidiary” means any
Subsidiary of the Relevant Company that is designated by the board of directors
of the Relevant Company as an Unrestricted Subsidiary pursuant to a board
resolution, but only to the extent that such Subsidiary:

 

(a)                                  has
no Financial Indebtedness other than Non-Recourse Debt;

 

(b)                                 is
not party to any agreement, contract, arrangement or understanding with the
Relevant Company or any Restricted Subsidiary of the Relevant Company unless
the terms of any such agreement, contract, arrangement or understanding are no
less favourable to the Relevant Company or such

 

32

 

Restricted
Subsidiary than those that might be obtained at the time of such designation
from Persons who are not Affiliates of the Relevant Company;

 

(c)                                  is
a Person with respect to which neither the Relevant Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results;

 

(d)                                 has
not guaranteed or otherwise directly or indirectly provided credit support for
any Financial Indebtedness of the Relevant Company or any of its Restricted
Subsidiaries; and

 

(e)                                  has
at least one director on its board of directors that is not a director or
executive officer of the Relevant Company or any of its Restricted Subsidiaries
and has at least one executive officer that is not a director or executive
officer of the Relevant Company or any of its Restricted Subsidiaries.

 

Any
designation of a Subsidiary of the Relevant Company as an Unrestricted
Subsidiary will be evidenced to the Facility Agent by filing with the Facility
Agent a certified copy of the board resolution of the Relevant Company giving
effect to such designation and an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by Clause
19.7 (Limitation on Restricted Payments).
If, at any time, any Unrestricted Subsidiary would fail to meet the preceding
requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Agreement and any Financial
Indebtedness of such Subsidiary will be deemed to be Incurred by a Restricted
Subsidiary of the Relevant Company as of the date it so fails to meet such
requirements and, if such Financial Indebtedness is not permitted to be
Incurred as of such date under Clause 19.6 (Limitation
on Financial Indebtedness) the Relevant Company will be in default
of such Section.  The board of directors
of the Relevant Company may at any time designate any Unrestricted Subsidiary
to be a Restricted Subsidiary; provided that any Financial Indebtedness of such
Subsidiary will be deemed to be Incurred by a Restricted Subsidiary of the
Relevant Company of any outstanding Financial Indebtedness of such Unrestricted
Subsidiary and such designation will only be permitted if (1) such
Financial Indebtedness is permitted under paragraph (1) of Clause 19.6 (Limitation on Financial Indebtedness),
calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period; and (2) no Default or
Event of Default would be in existence following such designation.

 

“Utilisation” means a utilisation of the
Facility.

 

“Utilisation Date” means a Tranche A Advance
Utilisation Date, and a Tranche C Advance Utilisation Date.

 

“Utilisation Request” means a notice
substantially in the form set out in Part I of Schedule 3 (Requests).

 

33

 

“VAT” means value added tax as provided for
in the Value Added Tax Act 1994 and any other tax of a similar nature.

 

“Voting Shares” of any Person as of any date
means the Share Capital of such Person that is at the time entitled to vote
(without regard to the occurrence of any contingency) in the election of the
board of directors (or persons performing similar functions) of such Person.

 

“Website Lender” has the meaning set out in
Clause 27.8 (Use of Websites).

 

“Weighted Average Life to Maturity” means,
when applied to any Financial Indebtedness or Disqualified Share Capital at any
date, the number of years obtained by dividing:

 

(a)                                  the
sum of the products obtained by multiplying (a) the amount of each then
remaining instalment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by

 

(b)                                 the
then principal amount or liquidation preference of such Financial Indebtedness
or Disqualified Share Capital.

 

“Wholly Owned Restricted Subsidiary” of any
Person means a Restricted Subsidiary of such Person all of the outstanding
Share Capital or other ownership interests of which (other than directors’
qualifying shares) shall at the time be owned by such Person and/or by one or
more Wholly Owned Restricted Subsidiaries of such Person.

 

“Working Capital Changes” means the change
in the inventory, current liabilities and current receivables, each on a basis
and determined in accordance with GAAP.

 

1.2          Construction

 

(a)           Unless a contrary indication appears,
any reference in this Agreement to:

 

(i)                                     the
“Facility Agent”, the “Security Agent”, any “Lender”, any “Obligor” or any “Party”
or any other person shall be construed so as to include its successors in
title, permitted assigns and permitted transferees;

 

(ii)                                  the
“assets” of a person shall be
construed as a reference to all or any part of its present and future business,
undertaking, property, shareholdings, assets and revenues (including any right
to receive revenues and uncalled capital);

 

(iii)                               this
“Agreement”, a “Finance Document” or any other agreement,
instrument or document includes references to such agreement, instrument or
document as amended, supplemented, novated, reenacted and/or restated;

 

34

 

(iv)                              “indebtedness” includes any obligation
(present or future, actual or contingent) for the payment or repayment of money,
whether present or future, actual or contingent and whether as principal or
surety;

 

(v)                                 “in the agreed terms” means as agreed
between the Relevant Company and the Facility Agent acting on the instructions
of the Majority Lenders;

 

(vi)                              a
“person” includes any person,
individual, firm, company, corporation, government, state or agency of a state
or any association, joint venture association, organisation, institution, trust
or partnership (whether or not having separate legal personality) or two or more
of the foregoing;

 

(vii)                           a
“regulation” includes any
regulation, rule, directive, request, guideline, order, decree, other
legislative measure, code, circular, notice, demand or injunction (whether or
not having the force of law including those with which it is customary for
persons to whom it is directed to comply, even if compliance is not mandatory)
of any governmental authority;

 

(viii)                        a
provision of law includes
references to such provision as re-enacted, amended or extended and any
subordinate legislation made under it;

 

(ix)                                a
time of day is a reference to
Luxembourg time;

 

(x)                                   “clauses”, “paragraphs” and “schedules”
shall be construed as references to clauses and paragraphs of, and schedules
to, this Agreement;

 

(xi)                                one
gender includes all genders, and
reference to the singular includes the plural and vice versa;

 

(xii)                             “including” and “in particular” shall not be construed restrictively but shall
mean “including, without prejudice to the generality of the foregoing” and “in
particular, but without prejudice to the generality of the foregoing”;

 

(xiii)                          “writing” includes facsimile transmission
legibly received, or any electronic method of communication approved by the
Facility Agent acting on the instructions of the Majority Lenders except in relation
to any certificate, forecast, report, notice, resolution or other document
which is expressly required by this Agreement to be signed, and “written” has a corresponding meaning;

 

(xiv)      (A)                                     a
certified document means such
document certified as genuine and in full force and effect or, if a copy, a
true, complete and up-to-date copy of the original in each case by a director
of the party providing the document or such other person as that party may
demonstrate to the Facility Agent’s

 

35

 

satisfaction
acting on the instructions of the Majority Lenders has authority to provide
such a certificate;

 

(B)                                any
certificate to be provided under
this Agreement or any Finance Document by a Borrower shall mean a certificate
in the agreed terms, addressed to the Facility Agent and capable of being
relied upon by the Finance Parties, dated and signed by an authorised signatory
of the relevant Borrower.

 

(b)                                 The
index and any headings, sub-headings or footnotes in this Agreement are for
ease of reference and shall be ignored in construing this Agreement.

 

(c)                                  Unless
a contrary indication 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)                                 A
Default is “continuing” for the
purposes of the Finance Documents until (i) it is expressly waived and any
conditions of the waiver fulfilled to the Majority Lenders’ satisfaction (acting
reasonably) or (ii) where the circumstances which caused it are capable of
remedy, until those circumstances have been remedied to the Majority Lenders’
satisfaction (acting reasonably) and the position is as it would have been if
such Default had not occurred (and in the case of late delivery of a document
or withdrawal of a claim whose existence constituted a Default, that Default
shall be deemed not to be continuing once delivery or withdrawal has occurred).

 

(e)                                  Any
“consent”, “waiver” or “approval” required from a Finance Party under a Finance
Document must be in writing and will be of no effect if not in writing.

 

(f)                                    “EUR” and “ Euro” means the single currency of the Participating Member
States and “SEK” denotes the
lawful currency of Sweden.

 

1.3          Third party rights

 

(a)                                  Unless
expressly provided to the contrary in a Finance Document and other than with
respect to Clause 17 (Representations),
19.19 (Release) and 19.21
(Additional Lender Covenant) a person who is not a Party has no right under the
Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to
enforce or to enjoy the benefit of any term of this Agreement.

 

(b)                                 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.

 

1.4          Miscellaneous

 

Unless the
contrary intention appears:

 

(a)                                  an
amount in Euro is payable only in the Euro unit;

 

36

 

(b)                                 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;

 

(c)                                  if
there is an inconsistency between this Agreement and any other Finance
Document, this Agreement will prevail; and

 

(d)                                 any
obligation of a Borrower or a Relevant Company or an Obligor under the Finance
Documents which is not a payment obligation shall arise only after that
Borrower has been lent the proceeds of the relevant Tranche and shall remain in
force only for so long as any payment obligation (other than indemnities) of
that Borrower, Relevant Company or Obligor is or may be outstanding under the
Finance Documents.

 

1.5          Obligations Several

 

Notwithstanding
any term of any other Finance Document, covenants, undertakings,
representations and warranties and other obligations given by, or of, more than
one Obligor are several and pro rata to their respective total borrowings under
this Agreement and no Obligor shall be liable for the failure by any other
Obligor to perform its obligations under any Finance Documents,.

 

37

 

SECTION 2

THE
FACILITY

 

2              THE
FACILITY

 

2.1          The Facility

 

Subject to the
terms of this Agreement:

 

(a)                                  Tranche A Facility: The Lenders make
available to the Tranche A Borrower a Euro term loan facility in a maximum
aggregate initial principal amount not exceeding the Total Tranche A
Commitments of EUR 45,000,000.00, secured by the Security Interests provided
for in the security documents described in Part IA of Schedule 2
hereto;

 

(b)                                 Tranche C Facility: The Lenders make
available to the Tranche C Borrower a Euro term loan facility in a maximum
aggregate initial principal amount not exceeding the Total Tranche C
Commitments of EUR 25,000,000.00, secured by the Security Interests provided
for in the security documents described in Part IC of Schedule 2
hereto.

 

2.2          Finance Parties’ rights and
obligations

 

(a)                                  The
obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its
obligations under the Finance Documents does not affect the obligations of any
other Party 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 each Finance Party under or in connection with the Finance Documents
are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from the Obligors shall be a separate and
independent debt.

 

(c)                                  A
Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

 

(d)                                 Each
Obligor and each of the Finance Parties agrees that the Security Agent shall be
the joint and several creditor of each obligation of that Obligor towards any
of the Finance Parties under any Finance Document, and that accordingly the
Security Agent will have its own independent right to require and receive
performance by that Obligor of those obligations.  However, any discharge of any such obligation
to one of the Security Agent or a Finance Party shall, to the same extent,
discharge the corresponding obligation owing to the other.

 

(e)                                  Without
limiting or affecting the Security Agent’s rights against each Obligor (whether
under this paragraph or under any other provision of the Security Documents),
the Security Agent agrees with each other Finance Party (on a several divided
basis) that, subject as set out in the next sentence, it will not

 

 

exercise its
rights as a joint and several creditor with a Finance Party except with the
consent of the relevant Finance Party. 
However, for the avoidance of doubt, nothing in the previous sentence shall
in any way limit the Security Agent’s right to act in the protection or
preservation of rights under or to enforce any Security Document, as
contemplated by this Agreement or the relevant Security Document (or to do any
act reasonably incidental to any of the foregoing).

 

(f)            The Tranche A
Borrower shall notify the Facility Agent of the Closing Date at least one
Business Day before such date.

 

2.3          Maximum aggregate principal amount

 

Notwithstanding
the provisions of Clause 2.1 above, the principal amount of any Facility may
exceed the total Commitments in respect of that Facility if and insofar as Cash
Interest or Compound Interest ha s been added to the principal amount of that
Facility pursuant to Clause 8 below (Interest).

 

3              PURPOSE

 

3.1          Purpose

 

(a)                                  Tranche A Facility: The Tranche A Borrower
shall apply the proceeds of amounts drawn down under the Tranche A Facility in
accordance with the Agreed Costs Schedule and the Structure Paper;

 

(b)                                 Tranche C Facility: The Tranche C Borrower
shall apply the proceeds of amounts drawn under the Tranche C Facility pursuant
to the Agreed Costs Schedule and the Structure Paper.

 

3.2          Financial Assistance

 

No proceeds of
any Utilisation hereunder shall be applied in a manner which may be prohibited
by any financial assistance or other similar laws in any relevant jurisdiction.

 

3.3          Monitoring

 

No Finance
Party is bound to monitor or verify the application of proceeds of any
Utilisation.

 

4              CONDITIONS
OF UTILISATION

 

4.1          Initial
conditions precedent

 

(a)                                  Tranche A

 

The Tranche A
Borrower may not deliver a Utilisation Request in relation to Tranche A unless
the Facility Agent has notified the Tranche A Borrower that the Facility Agent
has received all of the documents and evidence listed in Part IA of Schedule 2
(Conditions precedent), in form
and substance satisfactory to the Facility Agent acting

 

39

 

on the
instructions of the Majority Tranche A Lenders (each acting reasonably).  The Facility Agent shall give this notice
promptly upon being so satisfied.

 

(b)                                 Tranche C

 

The Tranche C
Borrower may not deliver a Utilisation Request unless the Facility Agent has
notified the Tranche C Borrower that the Facility Agent has received all of the
documents and evidence listed in Part I C of Schedule 2 (Conditions precedent), (save for such
documents and evidence that is only required in relation to Tranche A) in form
and substance satisfactory to the Facility Agent acting on the instructions of
the Majority Tranche C Lenders (each acting reasonably).  The Facility Agent shall give this notice
promptly upon being so satisfied.

 

4.2          Further conditions precedent

 

The obligation
of each Lender to participate in any Utilisation under a Facility is subject to
the further condition precedent that, on the date of the Utilisation Request
and on the proposed Utilisation Date:

 

(a)                                  no
Default is continuing or would result from the proposed Utilisation; and

 

(b)                                 the
Repeating Representations to be made by the Borrower under that Facility are true
in all material respects.

 

4.3          Maximum number of Advances

 

The Tranche A
Borrower may not deliver more than one Utilisation Request in respect of the
Tranche A Facility.  The Tranche C
Borrower may make multiple Utilisation Requests in relation to Tranche C.

 

40

 

SECTION 3

UTILISATION

 

5                                         UTILISATION

 

5.1          Delivery of a Utilisation Request

 

(a)                                  The
Tranche C Borrower may utilise the Tranche C Facility by delivery to the
Facility Agent of a duly completed Utilisation Request not later than 10 a.m.
Luxembourg time on the date of the signing of this Agreement.

 

(b)                                 The
Tranche A Borrower may utilise the Tranche A Facility by delivery to the
Facility Agent of a duly completed Utilisation Request not later than 10 a.m.
Luxembourg time on the date which is three Business Days before the day of the
proposed Advance.

 

5.2          Completion of a Utilisation Request

 

(a)                                  Each
Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

 

(i)            the proposed Utilisation Date is a
Business Day within the relevant Availability Period; and

 

(ii)           the amount of the Utilisation
complies with Clause 5.3 (Currency and
amount)

 

5.3          Currency and amount

 

(a)           The currency specified in a
Utilisation Request must be in Euros.

 

(b)           The amount of a proposed Advance
specified in a Utilisation Request must be:

 

(i)            in relation to the Tranche A
Advance, EUR 45,000,000;

 

(ii)                                  in
relation to any Tranche C Advance, an amount which is not more than Total
Tranche C Commitments and which is a minimum of EUR 5,000,000.

 

5.4          Lenders’ participation in Advances

 

(a)                                  If
the relevant conditions set out in this Agreement have been met each Lender
shall make its participation in each Advance available to the Facility Agent by
the Utilisation Date therefore through its Facility Office.

 

(b)                                 The
amount of each Lender’s participation in each Advance under a Facility will be
equal to the proportion borne by its Available Commitment to the Available
Facility immediately prior to making the Advance in each case under that
Facility.

 

 

SECTION 4

REPAYMENT,
PREPAYMENT AND CANCELLATION

 

6                                         REPAYMENT

 

6.1                                 Subject
to the provisions of this Agreement the Tranche A Borrower shall repay the
Tranche A Facility in full on the Final Repayment Date.

 

6.2                                 If
Tranche C is not prepaid in accordance with sub-Clause 7.2 (Mandatory Repayment – Tranche C) then the
Tranche C Borrower shall repay Tranche C in full on the Final Repayment Date.

 

7              PREPAYMENT
AND CANCELLATION

 

7.1          Mandatory Prepayment – Change of
Control

 

(a)                                  If
a Change of Control occurs:

 

(i)            the Borrower shall promptly notify
the Facility Agent upon becoming aware of that event;

 

(ii)                                  if
the Majority Lenders so require, the Facility Agent shall, by not less than 30
days notice to the relevant Borrower, cancel the Facility and declare all
outstanding Advances, together with accrued interest, and all other amounts
accrued under the Finance Documents immediately due and payable, whereupon the
Facility will be cancelled and all such outstanding amounts will become
immediately due and payable.

 

7.2          Mandatory Prepayment – Tranche C

 

On the Tranche
A Advance Utilisation Date, the Tranche C Borrower shall, subject to Clause 7.9
(Permitted Prepayments and Repayments)
and the provisions of this Clause 7.2, prepay all Tranche C Advances
outstanding.  For the purposes of this
Clause 7.2, the amount of the Tranche C Advance shall be determined ignoring
any accrued but unpaid Cash Interest and all Compound Interest and Cash
Interest that has been added to the principal amount thereof in accordance with
this Agreement.  On the Tranche A Advance
Utilisation Date, all such interest (including capitalised interest) on the
Tranche C Facility shall up to the amount specified in the Structure Paper be
paid to the Tranche C Lenders by the Tranche A Borrower in cash and all
interest which is accrued but remains unpaid (including capitalised interest)
on the Tranche C Facility and all other sums outstanding under this Agreement
in relation to Tranche C (excluding, for the avoidance of doubt, the principal
amount of the Tranche C Advance as determined in accordance with this Clause
7.2) shall automatically be novated to the Tranche A Borrower and shall
thereafter be deemed to be added to the principal amount of the Tranche A
Advance.  Nothing in this Clause 7.3
shall act to reduce the Available Commitment of any Lender in respect of any
Facility.

 

 

7.3          Voluntary prepayment of Tranche A and
Tranche C

 

(a)                                  No
voluntary prepayment of the Tranche A Facility may be made during the period 12
months from the Tranche A Advance Utilisation Date.  Thereafter, subject to Clause 7.9 (Permitted Prepayments and Repayments), the
Tranche A Borrower may, if it gives the Facility Agent no less than ten (10) Business
Days (or such shorter period as the Majority Lenders may agree) prior notice,
prepay the whole or any part of the Tranche A Facility (but if in part, being
an amount that reduces the amount of the Tranche A Facility by a minimum amount
of EUR 5,000,000) at par plus the following premium (the “Tranche A Call Option Premium”);

 

(i)                                     during
the period commencing 12 months from the Tranche A Advance Utilisation Date
(the “First Period”) until the
Second Period (as defined below), the Tranche A Call Option Premium shall be an
amount which is equal to the product of (A) the amount of the Tranche A
Facility which is being prepaid and (B) an annual rate which is equal to
the sum of (x) 6 months EURIBOR (using a Quotation Day two Business Days before
the voluntary prepayment is made) and (y) 650bps;

 

(ii)                                  during
the period commencing 24 months from the Tranche A Advance Utilisation Date
(the “Second Period”) until the
Third Period (as defined below), the Tranche A Call Option Premium shall be an
amount which is equal to the product of (A) the amount of the Tranche A
Facility which is being prepaid and (B) 50% of an annual rate which is
equal to the sum of (x) 6 months EURIBOR (using a Quotation Day two Business
Days before the voluntary prepayment is made) and (y) 650bps;

 

(iii)                               during
the period commencing 36 months from the Tranche A Advance Utilisation Date
(the “Third Period”) until the
Fourth Period (as defined below), the Tranche A Call Option Premium shall be an
amount which is equal to the product of (A) the amount of the Tranche A
Facility which is being prepaid and (B) 25% of an annual rate which is
equal to the sum of (x) 6 months EURIBOR (using a Quotation Day two Business
Days before the voluntary prepayment is made) and (y) 650bps;

 

(iv)                              during
the period commencing 48 months from the Tranche A Advance Utilisation Date and
until the Final Repayment Date (the “Fourth
Period”), the Tranche A Call Option Premium shall be zero;

 

where “par” is
an amount equal to the sum of (a) outstanding Advances under Tranche A
being prepaid (b) Cash Interest and Compound Interest accrued and unpaid
thereon up to the date of prepayment; and (c) the Tranche A Lenders’ costs
and expenses then due and payable by Bus and not previously paid by Bus and
shall exclude any other premium, penalty or Break Costs.

 

(b)                                 The
Tranche C Borrower may not voluntarily prepay the Tranche C Advances until the
date which is 12 months from the first Tranche C Advance Utilisation

 

43

 

Date.  Thereafter, subject to Clause 7.9 (Permitted Prepayments and Repayments), it
may, if it gives the Facility Agent no less than ten (10) Business Days
(or such shorter period as the Majority Lenders may agree) prior notice, prepay
the whole or any part of the Tranche C Facility (but if in part, being an
amount that reduces the amount of the Tranche C Facility by a minimum amount of
EUR 5,000,000 at the following rate (the “Tranche
C Call Option Premium”) each without penalty or Break Costs:

 

(i)                                     during
the period commencing 12 months from the Tranche C Advance Utilisation Date
(the “First Period”) until the
Second Period (as defined below), the Tranche C Call Option Premium shall be an
amount which is equal to the product of (A) the amount of the Tranche C
Facility which is being prepaid and (B) an annual rate which is equal to
the sum of (x) 6 months EURIBOR (using a Quotation Day two Business Days before
the voluntary prepayment is made) and (y) 650bps;

 

(ii)                                  during
the period commencing 24 months from the Tranche C Advance Utilisation Date (the
“Second Period”) until the Third
Period (as defined below), the Tranche C Call Option Premium shall be an amount
which is equal to the product of (A) the amount of the Tranche C Facility
which is being prepaid and (B) 50% of an annual rate which is equal to the
sum of (x) 6 months EURIBOR (using a Quotation Day two Business Days before the
voluntary prepayment is made) and (y) 650bps;

 

(iii)                               during
the period commencing 36 months from the Tranche C Advance Utilisation Date
(the “Third Period”) until the Fourth
Period (as defined below), the Tranche C Call Option Premium shall be an amount
which is equal to the product of (A) the amount of the Tranche C Facility
which is being prepaid and (B) 25% of an annual rate which is equal to the
sum of (x) 6 months EURIBOR (using a Quotation Day two Business Days before the
voluntary prepayment is made) and (y) 650bps;

 

(iv)                              during
the period commencing 48 months from the Tranche C Advance Utilisation Date and
until the Final Repayment Date (the “Fourth
Period”), the Tranche C Call Option Premium shall be zero;

 

where “par” is
an amount equal to the sum of (a) outstanding Advances under Tranche C
being prepaid (b) Cash Interest and Compound Interest accrued and unpaid
thereon up to the date of prepayment; and (c) the Tranche C Lenders’ costs
and expenses then due and payable by Holding and not previously paid by Holding
and shall exclude any other premium, penalty or Break Costs.

 

(c)                                  Upon
repayment or prepayment in full of the Tranche A Facility or the Tranche C
Facility, the Facility Agent shall direct the Security Agent, and upon receipt
of that direction the Security Agent, together with the Lenders in respect of
the Facility that has been prepaid shall take all steps and shall execute
amendments and documents as may be necessary to ensure the release of any
Security Interests which have been granted to the Security Agent on

 

44

 

behalf of the
Lenders with respect to that Facility, provided that the Security Agent will only
act on the direction given to it by the Facility Agent and subject to the
provisions of Clause 23 (Role of Agent).

 

7.4          Mandatory cancellation

 

The undrawn
Commitment of each Lender in relation to a Facility will be automatically
cancelled at the close of business on the last day of the Availability Period
for that Facility.

 

7.5          Prepayments during Interest Periods

 

In the event a
prepayment under this Clause 7 would otherwise be required on a day (the “Payment Date”) that is not the last day of
an Interest Period, the Borrower which is liable to make such prepayment may
elect (by written notice to the Facility Agent to be received by it no later
than five (5) Business Days prior to such Payment Date) to prepay the
Advances on the next day after such Payment Date that is the last day of an
Interest Period provided that such next day is less than ninety (90) days after
such Payment Date.  The provisions of
Clause 7.3(a) and (b) shall not apply to any payment made in
accordance with Clause 8.7 (Late Payment of
Cash Interest).

 

7.6          Right of repayment and cancellation in
relation to a single Lender

 

(a)           If:

 

(i)                                     any
sum payable to any Lender by an Obligor is required to be increased under
paragraph (c) of Clause 12.2 (Tax gross
up), or

 

(ii)                                  any
Lender claims indemnification from a Borrower under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs),

 

the Borrower
which is liable to make such payment may, whilst the circumstance giving rise
to the requirement or indemnification continues, give the Facility Agent notice
of cancellation of the Commitment of that Lender and its intention to procure
the repayment of that Lender’s participation in the Advances.  In addition, the Borrower shall have the
right to procure the repayment of the Lender’s participation in the Advances by
a third party.  On receipt of such notice
by the Facility Agent, the Lender named in the notice will be obliged to accept
such repayment provided that the terms of such repayment are no less favourable
to that Lender than would be the case if the repayment were a prepayment under
Clause 7.3.

 

(b)                                 On
receipt of a notice referred to in paragraph (a) above, the Commitment of
that Lender shall immediately be reduced to zero.

 

(c)                                  On
the last day of each Interest Period which ends after a Borrower has given
notice to a Lender under paragraph (a) above (or, if earlier, the date
specified by the relevant Borrower in that notice) that Borrower shall repay
that Lender’s participation in the Loan.

 

45

 

7.7          Restrictions

 

(a)                                  Any
notice of cancellation or prepayment given by any Party under this Clause 7
shall be irrevocable and, unless a contrary indication appears in this
Agreement, shall specify the date or dates upon which the relevant cancellation
or prepayment is to be made, the affected Advances and Commitments and the
amount of that cancellation or prepayment.

 

(b)                                 Any
prepayment under this Agreement shall be made (x) other than in the case of a
prepayment of the Tranche C Advance in accordance with Clause 7.2 together with
accrued interest on the amount prepaid and (y) without premium or penalty, save
(i) any Call Option Premium payable under Clause 7.3 (Voluntary Prepayment of Tranche A and Tranche C),
and (ii) any Break Costs payable under Clause 10.4 (Break Costs).

 

(c)           A Borrower may not re-borrow any part
of the Facilities which it has prepaid.

 

(d)                                 A
Borrower shall not repay or prepay all or any part of the Advances or cancel
all or any part of the Commitments except at the times and in the manner
expressly provided for in this Agreement.

 

(e)                                  No
amount of the Commitments cancelled under this Agreement may be subsequently
reinstated.

 

(f)                                    If
the Facility Agent receives a notice under this Clause 7 it shall promptly
forward a copy of that notice to either the relevant Borrower or the affected
Lender or Lenders, as appropriate.

 

7.8          Order of Payment under the
Subordinated Shareholder Loan

 

(a)                                  The
Tranche C Borrower shall grant a pledge over the SSL Account in favour of the
Security Agent for the benefit of the Tranche C Lenders. The agreement creating
such pledge shall be in substantially the form submitted to the Lenders prior
to the signing of this Agreement and shall be submitted to the Facility Agent,
signed on behalf of the Tranche C Borrower, in accordance with Schedule 2
hereto.

 

(b)                                 The
account authorisation in the form set out in Schedule 7 to this agreement
(the “Account Authorisation”)
shall require that the Account Bank apply any funds received in respect of
interest or principal under the Subordinated Shareholder Loan into the SSL
Account from time to time in accordance with the directions of the Facility
Agent which directions shall be given in compliance with paragraphs (g) and
(i) below.

 

(c)                                  The
Facility Agent shall (subject to the provisions of Clause 23 (Role of Agent)) promptly following receipt
of the document set out in paragraph (a) above from the Tranche C Borrower
(i) sign the draft Account Authorisation as set out in Schedule 7 of
this Agreement, (ii) submit the Account Authorisation and the SSL Account
pledge agreement so received to the Security Agent for signing, and (iii) instruct
the Security Agent to sign such documents in accordance with the authority of
the Lenders which authority

 

46

 

shall be
deemed to be irrevocably given by each Lender by virtue of the signing of this
Agreement.

 

(d)                                 The
Security Agent shall (subject to the provisions of Clause 23 (Role of Agent)), if so instructed by the
Facility Agent, (i) sign the pledge and retain a copy for its own records
and (ii) sign the Account Authorisation as sent to it by the Facility
Agent and return it to the Facility Agent.

 

(e)                                  On
receipt of the signed Account Authorisation, the Facility Agent shall submit it
to the Account Bank.

 

(f)                                    The
Tranche C Borrower shall procure that all payments made by Nordic from time to
time in respect of interest and principal under the Subordinated Shareholder
Loan shall be paid directly into the SSL Account.  The Tranche A Borrower shall procure that any
payments made by Nordic from time to time after the Tranche A Advance
Utilisation Date in respect of interest and principal under the Subordinated
Shareholder Loan shall be paid into the SSL Account.

 

(g)                                 The
Facility Agent shall, on or prior to each Interest Payment Date, provide to the
Account Bank a notice (an “Interest Payment
Notice”) in substantially the form set out in Part I of Schedule 9
hereto, which shall set out the amount of Cash Interest due on the Tranche C
Facility or, as the case may be, the Tranche A Facility on the forthcoming
Interest Payment Date.  The Interest
Payment Notice shall include an instruction to the Account Bank to pay any sums
received to the credit of the SSL Account:

 

(i)                                     first, to the Facility Agent, until the
sums so received in that Interest Period are equal to the aggregate amount of
Cash Interest set out in the Interest Payment Notice; and

 

(ii)                                  second, to Bus (as pledgee under the
Second Ranking Pledge over the Subordinated Shareholder Loan) to the extent of
any amount received by it under the Subordinated Shareholder Loan during an
Interest Period which is in excess of the payment to be made by the relevant
Borrower during that Interest Period pursuant to paragraph (i) above.

 

(h)                                 If
requested by the Tranche A Borrower, on or after the Tranche A Advance
Utilisation Date, the SSL Account may be substituted with an account of the
Tranche A Borrower in respect of which the instructions from the Tranche C
Borrower, the Facility Agent and the Security Agent referred to in paragraphs (a) to
(g) above shall be given once again by each relevant party in relation to
the new SSL Account and the terms of these paragraphs shall apply mutatis mutandis to the operation of such
account, with references to the Tranche C Borrower being read as references to
the Tranche A Borrower.  Such new SSL
Account will be pledged by the Tranche A Borrower to the Security Agent for the
benefit of the Tranche A Lenders.

 

(i)                                     When
the Facility Agent receives a notice that the Tranche C Facility or, as the
case may be, the Tranche A Facility is to be repaid or prepaid in accordance
with the terms of Clause 7.3 (Voluntary
Prepayments), or when

 

47

 

the Tranche C
Facility or, as the case may be, the Tranche A Facility, is to be otherwise
repaid in its entirety in accordance with the terms of this Agreement, the
Facility Agent shall in either case promptly issue a notice to the Account Bank
in substantially the form set out in Part II of Schedule 9 hereto
(such notice being, in the case of a prepayment, a “Prepayment Notice” or, in the case of a repayment, a ‘Repayment Notice”).  Following receipt of the amount to be repaid
or prepaid the Facility Agent shall distribute the amount so received to the
Tranche A Lenders or, as the case may be, the Tranche C Lenders and shall, as
soon as possible thereafter, issue a new Interest Payment Notice to the Account
Bank under clause (g) above setting out the amount of Cash Interest
remaining due in respect of the Tranche C Facility or, as the case may be, the
Tranche A Facility for the remainder of that Interest Period.

 

(j)                                     The
Facility Agent shall apply all funds received from the SSL Account towards
payment of the Tranche C Facility or, as the case may be, the Tranche A
Facility as soon as is practicable after receipt thereof.

 

7.9          Payments under the Intra-Group Capital
Contribution

 

The Tranche C
Borrower shall procure that all payments made by Nordic from time to time in
respect of interest and principal under the Intra-Group Capital Contribution
shall be paid directly into the SSL Account. 
The Tranche A Borrower shall procure that any payments made by Nordic
from time to time after the Tranche A Advance Utilisation Date in respect of
interest and principal under the Intra-Group Capital Contribution shall be paid
into the SSL Account.  Any sums received
the SSL Account pursuant to this Clause 7.9 shall be applied in accordance with
the terms of Clause 7.8 above and the instructions and notices issued pursuant
thereto.

 

7.10        Permitted
Prepayments and Repayments

 

An amount is
only required to be applied in prepayment or repayment of the Facility under
Clause 6 and this Clause 7 if to do so is permitted under the other Finance
Documents and Senior Notes Indenture and related documents and provided that
the Facility Agent is not required to verify that any prepayment made pursuant
to this Clause 7 is permitted under any other Finance Document and the Senior
Notes Indenture and such related documents.

 

48

 

SECTION 5

COSTS
OF UTILISATION

 

8                                         INTEREST

 

8.1          Calculation of interest

 

The rate of
interest on the Tranche A Advance and each Tranche C Advance for each Interest
Period in relation thereto is the percentage rate per annum which is the
aggregate of the applicable:

 

(a)           Cash Margin;

 

(b)           Compound Margin;

 

(c)           EURIBOR; and

 

(d)           Mandatory Cost, if any,

 

in each case
for that Interest Period.

 

8.2          Payment of Cash Interest

 

(a)                                  Each
Borrower shall subject to the last sentence of Clause 8.5(a) and this
Clause 8.2 pay accrued Cash Interest on each Advance made to it on the last day
of each Interest Period (and, if the Interest Period is longer than six Months,
on the dates falling at six Monthly intervals after the first day of the
Interest Period during that Interest Period). 
Subject to Clause 8.7, Cash Interest not paid by the Tranche A Borrower
and/or the Tranche C Borrower on any Interest Payment Date for each Interest
Period shall, be added to the relevant Advance as principal amount on the first
day of the next Interest Period.  For the
avoidance of doubt, Compound Interest shall be treated in accordance with
sub-Clause 8.3.

 

(b)                                 The
relevant Borrower shall give the Facility Agent at least two Business Days’
notice prior to making a payment of Cash Interest with respect to any Facility.

 

8.3          Compound Interest

 

In addition to
sub-Clause 8.2 above, interest on each Tranche A Advance and Tranche C Advance
for each Interest Period relating thereto shall accrue during each Interest
Period at the rate equal to the Compound Margin and the amount of interest so
accrued on each Tranche A Advance and Tranche C Advance shall be added to the
relevant Advance as principal amount on the first day of the next Interest
Period.

 

8.4          Calculation

 

Interest will
accrue daily from and including the first day of each Interest Period and shall
be calculated on the basis of a 360 day year.

 

 

8.5          Default interest

 

(a)                                  If
an Obligor does not pay any amount payable by it under a Finance Document on
its due date, interest shall accrue on the overdue amount from the due date up
to the date of actual payment (both before and after judgment) at a rate 2 per
cent. higher than the rate which would have been payable if the overdue amount
had, during the period of non-payment, constituted an Advance in the currency o
f the overdue amount for successive Interest Periods, each of a duration
selected by the Facility Agent (acting reasonably).  For the avoidance of doubt, if Cash Interest
is not paid by the Borrower for any reason whatsoever the terms of this Clause
8.5 shall not apply to the amount of such Cash Interest and there shall be no
default or breach of the Finance Documents by that Borrower.

 

(b)                                 Any
interest accruing under this Clause 8.5 (Default
interest) shall be immediately payable by the Obligor on demand by
the Facility Agent.

 

(c)                                  Default
interest (if unpaid) arising on an overdue amount will be compounded with the
overdue amount at the end of each Interest Period applicable to that overdue
amount but will remain immediately due and payable.

 

8.6          Notification of rates of interest

 

The Facility
Agent shall promptly notify the Lenders and the relevant Borrower of the
determination of a rate of interest under this Agreement.

 

8.7          Late payment of Cash Interest which
has been compounded

 

Subject to
Clause 8.2(b), if any Cash Interest on the Tranche A Advance or the Tranche C
Advance has been added to the relevant Advance as principal amount pursuant to
the second sentence of Clause 8.2 above, the relevant Borrower may, at any time
prior to the date which is five Business Days before the Interest Payment Date
immediately following the Interest Payment Date on which such Cash Interest has
been so added, pay to the Facility Agent an amount equal to all or part of such
Cash Interest which has been added to the relevant Advance in the manner
described herein, provided that the Borrower has given the Facility Agent at
least two Business Days’ notice of such payment and provided further that each
Borrower may in any case make no more than three payments under this Clause 8
during any Interest Period.  The Tranche
A Call Option Premium, or the Tranche C Call Option Premium (as the case may
be) shall not be payable with respect to the Cash Interest payment made in
accordance with this Clause 8.7.  The
amount paid in respect of Cash Interest herein shall be deemed to be deducted
from the principal amount outstanding on the relevant Facility on the first day
of the Interest Period during which such payment is made.  Payment made under this Clause will not
result in any penalty or Break Costs being payable.  Notwithstanding any of the foregoing, the
Tranche A Borrower may not make any payment pursuant to this Clause 8.7 during
the period between (and excluding) the Tranche A Advance Utilisation Date and
the Interest Payment Date immediately thereafter.

 

50

 

9                                         INTEREST PERIODS

 

(a)                                  Each
Interest Period shall be no longer than six (6) months provided that an
Interest Period for an Advance shall not extend beyond the Final Repayment
Date.

 

(b)                                 Each
Interest Period for an Advance shall start, if such Interest Period is the
first Interest Period for the Advance, on the Utilisation Date for the Advance
and once the Advance has been advanced on the last day of its preceding
Interest Period.

 

9.2          Non-Business Days

 

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

 

9.3          Other adjustments

 

The Facility
Agent and a Borrower may enter into such other arrangements as they may agree
for the adjustment of Interest Periods with respect to that Borrower.

 

9.4          Notification

 

The Facility
Agent shall notify each Borrower and each Lender of the duration of each
Interest Period promptly after ascertaining its duration.

 

10           CHANGES
TO THE CALCULATION OF INTEREST

 

10.1        Absence of quotations

 

Subject to
Clause 10.2 (Market disruption),
if EURIBOR is to be determined by reference to the Reference Banks but a
Reference Bank does not supply a quotation by noon on the Quotation Day, the
applicable EURIBOR shall be determined on the basis of the quotations of the remaining
Reference Banks.

 

10.2        Market disruption

 

If a Market
Disruption Event occurs in relation to an Advance for any Interest Period, then
the rate of interest on each Lender’s share of that Advance for the Interest
Period shall be the rate per annum which is the sum of:

 

(a)           the Cash Margin;

 

(b)           the Compound Margin (where
applicable);

 

(c)           LIBOR; and

 

(d)           the Mandatory Cost, if any,
applicable to that Lender’s participation in the Advance.

 

51

 

10.3        Alternative basis of interest or funding

 

(a)                                  If
a Market Disruption Event occurs and the Facility Agent or a Borrower so
requires, the Facility Agent and that Borrower shall enter into negotiations
(for a period of not more than thirty days) with a view to agreeing a
substitute basis for determining the rate of interest payable by that Borrower.

 

(b)                                 Any
alternative basis agreed pursuant to paragraph (a) above shall, with the
prior consent of all the Lenders and the relevant Borrower, be binding on all
Parties.

 

10.4        Break Costs

 

(a)                                  Save
as otherwise provided herein, a Borrower shall, within three (3) Business
Days of demand by a Finance Party, pay to that Finance Party its Break Costs
attributable to all or any part of an Advance or Unpaid Sum being paid by that
Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum.

 

(b)                                 Each
Lender shall, as soon as reasonably practicable after a demand by the Facility
Agent, provide a certificate confirming the amount of its Break Costs for any
Interest Period in which they accrue.

 

(c)                                  For
the avoidance of doubt, Break Costs shall not be payable with respect to any
payment made under Clause 8.7 (Late Payment
of Cash Interest which has been compounded) or with respect to any
prepayment of the Tranche A Facility or the Tranche C Facility pursuant to
Clause 7.2 (Mandatory Prepayment of Tranche
C) or 7.3 (Voluntary Prepayment
of Tranche A and Tranche C).

 

11                                  FEES

 

11.1        Commitment fee

 

The Tranche A
Borrower shall, on the Tranche A Advance Utilisation Date upon receipt of the
proceeds of the Tranche A Advance, pay to the Facility Agent on account of the
Tranche A Lenders commitment fees in the amounts and at the time agreed in the
Fees Letter.  The Tranche C Borrower
shall, on a Tranche C Advance Utilisation Date, pay to the Facility Agent on
account of the Tranche C Lenders commitment fees in the amounts and at the time
agreed in the Fees Letter.

 

11.2        Funding Fee

 

The Tranche A
Borrower shall, on the Tranche A Advance Utilisation Date upon receipt of the
proceeds of the Tranche A Advance, pay to the Facility Agent on account of the
Tranche A Lenders funding fees in the amounts and at the time agreed in the
Fees Letter.  The Tranche C Borrower
shall, on a Tranche C Advance Utilisation Date, pay to the Facility Agent on
account of the Tranche C Lenders funding fees in the amounts and at the time
agreed in the Fees Letter.

 

52

 

11.3        Facility Agent’s fee

 

The Tranche A
Borrower or the Tranche C Borrower, as applicable, shall pay to the Facility
Agent (for its own account) an agency fee in the amount and at the time agreed
in the Fees Letter or any other agreement setting out the fees agreed between
the Facility Agent, the Tranche A Borrower and the Tranche C Borrower (as
applicable).

 

11.4        Security Agent’s Fee

 

The Tranche A
Borrower or the Tranche C Borrower, as applicable, shall pay to the Security
Agent (for its own account) an agency fee in the amount and at the time agreed
in the Fees Letter or any other agreement setting out the fees agreed between
the Security Agent, the Tranche A Borrower and the Tranche C Borrower (as
applicable).

 

11.5        Exclusion of Fees

 

For the
avoidance of doubt (i) any fee referred to in sub-clauses 11.1 and 11.2
above shall not be payable if the Facility with respect to which that fee is
payable is not utilised, (ii) the Tranche A Borrower shall not be liable
in respect of fees referred to in sub-clause 11.4 above before the Tranche A
Advance Utilisation Date and (iii) nothing in this clause 11 affects the
liability for payment of professional fees, then remaining unpaid.

 

53

 

SECTION 6

ADDITIONAL
PAYMENT OBLIGATIONS

 

12           TAX
GROSS UP AND INDEMNITIES

 

12.1        Definitions

 

In this Clause
12:

 

(a)                                  “Protected Party” means a Finance Party
which is or will be, for or on account of Tax, subject to any liability or
required to make any payment 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.

 

(b)                                 “Tax Credit” means a credit against, relief
or remission for, or repayment of, any Tax.

 

(c)                                  “Tax Payment” means either the increase in a
payment made by a Borrower to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause
12.3 (Tax indemnity).

 

12.2        Tax gross-up

 

(a)                                  Each
relevant Borrower shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law.

 

(b)                                 If
a Borrower or a Lender is aware that it must make a Tax Deduction (or that
there is any change in the rate or the basis of a Tax Deduction), it must
promptly notify the Facility Agent. Similarly, a Lender shall notify the
Facility Agent on becoming so aware in respect of a payment to that Lender. The
Facility Agent must then promptly notify the affected Parties.

 

(c)                                  If
a Tax Deduction is required by law to be made by a Borrower or the Facility
Agent the amount of the payment due from that Borrower shall be increased to an
amount which (after making any Tax Deduction) leaves an amount equal to the
payment which would have been due if no Tax Deduction had been required.

 

(d)                                 If
a Borrower is required to make a Tax Deduction, it must make the minimum Tax
Deduction allowed by law and must make any payment required in connection with
that Tax Deduction within the time allowed by law.

 

(e)                                  Within
thirty (30) days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the respective Borrower must deliver to the
Facility Agent for the Finance Party entitled to the payment evidence
reasonably satisfactory to that Finance Party that the Tax Deduction has been
made or (as applicable) any appropriate payment paid to the relevant taxing
authority.

 

 

(f)                                    Each
Lender which is entitled to receive payments from a Borrower at a reduced rate
of withholding by virtue of a double taxation treaty shall cooperate in
completing any procedural formalities necessary for that Borrower to obtain
authorisation to make that payment at a reduced rate of withholding.

 

12.3        Tax indemnity

 

(a)                                  Each
relevant Borrower shall (within 3 Business Days of a demand by the Facility
Agent) pay to a Protected Party an amount equal to any loss or liability which
that Protected Party determines will be or has been suffered (directly or
indirectly) by that Protected Party for or on account of Tax in relation to a
payment received or receivable (or any payment deemed to be received or
receivable) under a Finance Document.

 

(b)                                 Paragraph
(a) above shall not apply to any Tax assessed on a Finance Party under the
law of the jurisdiction in which:

 

(i)                                     that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party has a Facility Office and is treated
as resident for tax purposes; or

 

(ii)                                  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
by that Finance Party. However, any payments deemed to be received or
receivable, including any amount treated as income but not actually received by
the Finance Party, such as Tax Deduction, will not be treated as net income
received or receivable for this purpose.

 

(c)           Paragraph (a) above shall not
apply to any Tax assessed on a Finance Party to the extent a loss, liability or
cost:

 

(i)                                     is
compensated for by an increased payment under Clause 12.2 (Tax gross-up); or

 

(ii)                                  would
have been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so compensated
solely because one of the exclusions in paragraph (d) of 12.2 (Tax gross-up) applied.

 

(d)                                 A
Protected Party making, or intending to make, a claim under paragraph (a) above
must promptly notify the Facility Agent of the event which will give, or has
given, rise to the claim and such notice must be accompanied by reasonable
particulars of the basis for the claim, following which the Facility Agent
shall notify the affected Borrower.

 

(e)                                  A
Protected Party must, on receiving a payment from a Borrower under this Clause
12.3, notify the Facility Agent.

 

12.4        Tax credit

 

If a Borrower
makes a Tax Payment and the relevant Finance Party determines that:

 

55

 

(a)           a Tax Credit is attributable to that
Tax Payment; and

 

(b)           it has used and retained that Tax
Credit,

 

the Finance
Party shall pay an amount to the relevant Borrower which that Finance Party
determines will leave it (after that payment) in the same after-Tax position as
it would have been if the Tax Payment had not been required to be made by that
Borrower.

 

12.5        Stamp taxes

 

Each Borrower
shall pay and indemnify each Finance Party against any cost, loss or liability
that Finance Party incurs in relation to all stamp duty, registration or other
similar Taxes or fees payable in connection with the entry into, performance or
enforcement of any Finance Document, except for any such Tax payable in
connection with the entry into of a Transfer Certificate.

 

12.6        Value added taxes

 

(a)                                  Any
amount payable under a Finance Document by a Borrower is exclusive of any value
added tax or any other Tax of a similar nature which might be chargeable in
connection with that amount. If any such Tax is chargeable, that Borrower must
pay to the Finance Party (in addition to and at the same time as paying that
amount) an amount equal to the amount of that Tax.

 

(b)                                 Where
a Finance Document requires any Party to reimburse a Finance Party for any
costs or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all value added tax or any other Tax of a similar nature
incurred by the Finance Party in respect of those costs or expenses but only to
the extent that the Finance Party (acting reasonably) determines that it is not
entitled to credit or repayment from the relevant tax authority in respect of
the value added tax or any other Tax of a similar nature.

 

13           INCREASED
COSTS

 

13.1        Increased costs

 

(a)                                  Subject
to Clause 13.3 (Exceptions), a
Borrower shall, within three (3) Business Days of a demand by the Facility
Agent, pay for the account of a Finance Party the amount of any Increased Costs
incurred by that Finance Party or its direct or indirect holding company as a
result of (i) the introduction of or any change in (or in the
interpretation, administration or application of) any law or regulation or (ii) compliance
with any law or regulation made after the date of this Agreement.

 

(b)                                 In
this Agreement “Increased Costs”
means:

 

(i)                                     a
reduction in the rate of return under a Finance Document or on a Finance Party’s
(or its direct or indirect holding company’s) overall capital;

 

56

 

(ii)                                  an
additional or increased cost; or

 

(iii)                               a
reduction of any amount due and payable under any Finance Document,

 

which is
incurred or suffered by a Finance Party or its direct or indirect holding
company but only to the extent that it is attributable to that Finance Party
having entered into any Finance Document, its Commitment and/or funding or
performing its obligations under any Finance Document in each case with respect
to the Facilities made available to that Borrower.

 

13.2        Increased cost claims

 

(a)                                  A
Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Facility
Agent of the event giving rise to the claim, following which the Facility Agent
shall promptly notify the relevant Borrower.

 

(b)                                 Each
Finance Party shall, as soon as practicable after a demand by the Facility
Agent, provide a certificate confirming the amount of its Increased Costs.

 

13.3        Exceptions

 

(a)                                  Clause
13.1 (Increased costs) does not
apply to the extent any Increased Cost is:

 

(i)                                     attributable
to a Tax Deduction required by law to be made by an Obligor;

 

(ii)                                  compensated
for by Clause 12.3 (Tax indemnity)
(or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated
solely because the any of the exclusions in paragraph (b) of Clause 12.3 (Tax indemnity) applied);

 

(iii)                               compensated
for by the payment of the Mandatory Cost; or

 

(iv)                              attributable
to the wilful breach by the relevant Finance Party or its Affiliates of any law
or regulation.

 

(b)                                 In
this Clause 13.3, a reference to a “Tax
Deduction” has the same meaning given to the term in Clause 12.1 (Definitions).

 

14           OTHER
INDEMNITIES

 

14.1        Currency indemnity

 

(a)                                  If
any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award
given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is
payable into another currency (the “Second
Currency”) for the purpose of

 

(i)            making or filing a claim or proof
against that Obligor;

 

57

 

(ii)                                  obtaining
or enforcing an order, judgment or award in relation to any litigation or
arbitration proceedings,

 

that Obligor
shall as an independent obligation, within three Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from
the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.

 

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

 

14.2        Other indemnities

 

Each Borrower
shall, within three (3) Business Days of demand, indemnify each Finance
Party against any cost, loss or liability incurred by that Finance Party as a
result of:

 

(a)                                  the
occurrence of any Event of Default;

 

(b)                                 a
failure by that Borrower to pay any amount due under a Finance Document on its
due date, including without limitation, any cost, loss or liability arising as
a result of Clause 24 (Sharing among the
Finance Parties);

 

(c)                                  funding,
or making arrangements to fund, its participation in an Advance requested by
that Borrower in a Utilisation Request but not made by reason of the operation
of any one or more of the provisions of this Agreement (other than by reason of
wilful default or gross negligence by that Finance Party alone); or

 

(d)                                 an
Advance or part of an Advance not being prepaid in accordance with a notice of
prepayment given by that Borrower.

 

14.3        Indemnity to the Agent

 

(a)                                  Each
Borrower shall, within three (3) Business Days of demand, indemnify the
Facility Agent against any cost, loss or liability incurred by the Facility
Agent (acting reasonably) as a result of:

 

(i)            investigating any event which it
reasonably believes is or may be a Default; or

 

(ii)                                  acting
or relying on any notice, request or instruction which it reasonably believes
to be genuine, correct and appropriately authorised.

 

(b)                                 Each
Borrower shall, within three (3) Business Days of demand or, in the case
of costs and expenses falling within (i) below with respect to documents
in agreed form or executed at the time of execution of this Agreement, at the
time specified in the Structure Paper, indemnify the Security Agent on a full

 

58

 

indemnity
basis against all costs and expenses and other liabilities (including legal and
out of pocket expenses and any tax or value added tax on such costs and
expenses) which the Security Agent reasonably incurs in connection with:

 

(i)                                     the
preparation, negotiation, execution and delivery of the Finance Documents (as
provided, in the case of those Finance Documents executed or in agreed form at
the time of execution of this Agreement, in the Agreed Costs Schedule and
the Structure Paper);

 

(ii)                                  the
execution or purported execution of any rights, powers or discretion in
accordance with the Finance Documents;

 

(iii)                               any
payment of stamp duty or stamp duty reserve tax or registration fees in respect
of the Security Interests created under the Security Documents;

 

(iv)                              any
actual or proposed amendment or waiver or release or consent requested by that
Borrower under or in connection with the Finance Documents;

 

(v)                                 any
discharge or release of a pledge by that Borrower given in the Security
Documents; or

 

(vi)                              the
preservation or exercise (or attempted preservation or exercise) of any rights
under or in connection with and the enforcement (or attempted enforcement) of
any Security Interest or any other right in the Finance Documents against that
Borrower.

 

unless such
liability or expense has resulted from the gross negligence or wilful
misconduct of the Security Agent.

 

15           MITIGATION
BY THE LENDERS

 

15.1        Mitigation

 

(a)                                  Each
Finance Party shall, in consultation with an affected Borrower, take
commercially reasonable steps to mitigate any circumstances which arise and
which would result in any amount becoming payable by that Borrower under or
pursuant to, or cancelled pursuant to, any of Clause 12 (Tax gross-up and indemnities) or Clause 13
(Increased costs) including (but
not limited to) transferring its rights and obligations under the Finance
Documents to another Affiliate or Facility Office.

 

(b)                                 Paragraph
(a) above does not in any way limit the obligations of any Obligor under
the Finance Documents.

 

15.2        Limitation of liability

 

(a)                                  The
affected Borrower referred to in Clause 15.1 shall indemnify each Finance Party
for all costs and expenses reasonably incurred by that Finance Party as a
result of steps taken by it under Clause 15.1 (Mitigation).

 

59

 

(b)                                 A
Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation) if, in the opinion of that
Finance Party (acting reasonably), to do so might be prejudicial to it.

 

15.3        Conduct of business by a Finance Party

 

No term of
this Agreement will:

 

(a)                                  interfere
with the right of any Finance Party to arrange its affairs (Tax or otherwise)
in whatever manner it thinks fit; or

 

(b)                                 oblige
any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it in respect of Tax or the extent, order and manner of
any claim; or

 

(c)                                  oblige
any Finance Party to disclose any information relating to its affairs (Tax or
otherwise) or any computation in respect of Tax.

 

16           COSTS
AND EXPENSES

 

16.1        Transaction expenses

 

Each Borrower
shall promptly on demand pay the Finance Parties the amount of all costs and
expenses (including legal and notarial fees, value added tax, stamp duty and
similar taxes and registration fees) reasonably incurred by any of them in
connection with the negotiation, preparation, printing, execution and
syndication of:

 

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

 

(b)                                 any
other Finance Documents executed after the date of this Agreement,

 

in respect of
both (a) and (b) to the extent, in the amounts and at the times
specified in the Structure Paper with respect to such Borrower.

 

16.2        Amendment costs

 

If a Borrower
requests an amendment, discharge, waiver, release or consent, that Borrower,
shall within three Business Days of demand, reimburse the Facility Agent for
the amount of all costs and expenses (including legal fees) reasonably incurred
by the Facility Agent in responding to, evaluating, negotiating or complying
with that request or requirement.

 

16.3        Enforcement costs

 

Each Borrower
shall, within three (3) Business Days of demand, pay (pro rata on the
amount of each Advance made to it) to each Finance Party on a full indemnity
basis the amount of all costs and expenses (including legal fees) incurred by
that Finance Party in connection with the enforcement of, or the preservation
or exercise of any rights under, any Finance Document against that Borrower.

 

60

 

SECTION 7

REPRESENTATIONS,
UNDERTAKINGS AND EVENTS OF DEFAULT

 

17                                  REPRESENTATIONS

 

The
Representations set out in this Clause 17 are made by Holding (in respect of
itself and if the representation so states its relevant Subsidiaries) on the
date of this Agreement and by Bus on the first Tranche A Advance Utilisation
Date, provided that these representations, when made by Bus, will be deemed
made (a) with respect to the facts and circumstances subsisting at the
date of this Agreement and (b) with respect to the facts and circumstances
subsisting at the time of the Tranche A Advance Utilisation Date.  Any representations made in any Finance
Document or Certificate in relation thereto by Bus and Holding (or their
respective directors or officers) with respect to any of their respective
Subsidiaries shall be deemed to be made strictly on the basis that Bus or, as
the case may be, Holding, (or their respective directors or officers) has made
all reasonable enquiries of the finance director and chief executive director
of Nordic and accordingly that such representations are made strictly on the
basis of the information obtained as a result of such enquiries.  All references in a Finance Document or any
Certificate in relation thereto to the awareness or belief or knowledge of Bus
or Holding (or their respective directors or officers) or to them (or their
respective directors or officers) having made enquiries with respect to any
matters shall, if the matters related to any of their respective Subsidiaries,
be construed accordingly.  This
qualification is intended for the benefit of Nordic and each director of Bus
and Holding.

 

17.1        Status

 

(a)                                  It
is (and each of the Subsidiary Guarantors is) a corporation, duly incorporated
and validly existing with limited liability, in each case under the law of its
jurisdiction of incorporation.

 

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

 

(c)                                  No
administrator, receiver, liquidator or similar official has been appointed with
respect to it or any of its assets or any of the Subsidiary Guarantors or such
Subsidiary Guarantor’s assets and no petition or proceeding for such an
appointment is pending, other than Swedish moratorium proceedings in respect of
Bus.

 

(d)                                 It
is acting on its own account when entering into this Agreement and drawing
Advances under this Agreement.

 

17.2        Valid and binding obligations

 

Each Finance
Document to which it is a party is its legally binding, valid and, subject to
the Reservations, enforceable obligation.

 

 

17.3        Non-conflict with other obligations

 

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

 

(a)                                  conflict
with any law or regulation applicable to it;

 

(b)                                 conflict
with its or any of the Subsidiary Guarantors’ respective constitutional
documents;

 

(c)                                  result
in the breach or violation of or constitute a default or termination event
(however described) under any agreement or instrument (except (i) the
Subordinated Notes Indenture and related documents, (ii) the Senior Notes
Indenture or related documents, (iii) any other agreements or instruments
in respect of any other arrangements with its or any of the Subsidiary
Guarantors’ creditors which include by reference, or expressly refers to, any
of the terms of the Subordinated Notes Indenture and related documents or the
Senior Notes Indenture and related documents or (iv) any other agreement
or instrument which by virtue of its terms would, until the date the
Restructuring is completed substantially in accordance with the terms of the
Binding Restructuring Agreement, but for this paragraph (iv) resulting in
a representation made hereunder being untrue the provision of this sub-Clause
17.3(c)) binding upon it or any of the Subsidiary Guarantors or any of its or
any of the Subsidiary Guarantor’s assets; or

 

(d)                                 result
in the creation or imposition of any Security Interest upon any of its or any
of the Subsidiary Guarantors’ assets other than pursuant to the Finance
Documents.

 

17.4        Power and authority

 

(a)                                  It
has the power to enter into, perform and deliver, and has taken all necessary
action to authorise its 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.

 

(b)                                 No
limit on its powers will be exceeded as a result of the borrowings, grants of
security or giving of Guarantees contemplated by the Finance Documents to which
it or any of its Subsidiaries is a party.

 

17.5        Authorisations:

 

(a)           All Authorisations required or
desirable:

 

(i)                                     to
enable it lawfully to enter into, exercise its respective rights and comply
with its obligations in the Finance Documents to which it is a party; and

 

(ii)                                  to
make the Finance Documents to which it is a party admissible in evidence in its
jurisdiction of incorporation,

 

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

 

62

 

(b)                                 All
Authorisations required by it or the Subsidiary Guarantor in connection with
the carrying on by it or such Subsidiary Guarantor of its and their respective
business in all material respects as it is being conducted have been obtained
or effected (as appropriate) and are in full force and effect except
authorisations the non-receipt or failure to be in force of which has not had
and is not reasonably likely to have a Material Adverse Effect.

 

17.6        Governing law and enforcement

 

(a)                                  The
choice of English law as the governing law of the Agreement will be recognised
and enforced in its jurisdiction of incorporation.

 

(b)                                 Any
judgment obtained in England in relation to the Agreement will be recognised
and enforced in its jurisdiction of incorporation.

 

17.7        Deduction of Tax

 

It is not
required under the law of its jurisdiction of incorporation to make any
deduction for or on account of Tax from any payment it may make under any
Finance Document.

 

17.8        No filing or stamp taxes

 

Under the law
of its jurisdiction of incorporation it is not necessary that the Finance
Documents be filed, recorded or enrolled with any court or other authority in
that jurisdiction or that any stamp, registration, notarisation or similar tax
be paid on or in relation to the Finance Documents or the transactions
contemplated by the Finance Documents.

 

17.9        No default

 

Save for any
Event of Default, default or termination event (however described) which may
arise under any of the agreements, instruments or documents referred to in
paragraphs (i), (ii), (iii) or (iv) of sub-Clause 17.3(c) above:

 

(a)                                  no
Event of Default is continuing or might reasonably be expected to result from
the execution of, or the performance of any transaction contemplated by
including without limitation the making of any Utilisation, any Finance
Document; and

 

(b)                                 no
other event or circumstance is outstanding which constitutes a default or
termination event (howsoever described) under any agreement or instrument which
is binding on it or any of the Subsidiary Guarantors or to which its (or any of
the Subsidiary Guarantors) assets are subject which has had or might have a
Material Adverse Effect

 

17.10      No misleading information

 

That, having
made all reasonable enquiries of the finance director and chief executive of
Nordic, and according to the results of such inquiries, (i) all information
that has been requested by or on behalf of the Lenders (the “Disclosed Information”) from Bus, or as the
case may be, Holding has been disclosed to the Lenders, (ii) the

 

63

 

Disclosed
Information (except for financial projections) is accurate in all material
respects, (iii) the Disclosed Information is not rendered misleading by
the omission of other information, known to Bus or Holding but not disclosed
and (iv) the financial projections provided to the Lenders were made in
good faith by the directors of Nordic and are based on assumptions which the
directors of Nordic believe to be reasonable and appropriate.

 

17.11      No voluntary proceedings

 

It has not
commenced a voluntary proceeding, nor has an involuntary proceeding been
commenced against it, under Chapter 11 of Title 11 of the U.S. Code or any
other applicable insolvency or moratorium legislation save for the
Restructuring and the Swedish moratorium proceedings to be undertaken by Bus.

 

17.12      Financial statements

 

(a)                                  The
Relevant Company represents that its most recently prepared consolidated
accounts were prepared in accordance with Applicable Accounting Principles
consistently applied and give a true and fair view of (if audited) or fairly present
(if quarterly unaudited) its consolidated or unconsolidated (as stated in such
financial statements) (A) financial condition as at the date to which they
were drawn up and (B) results of operations during the period covered.

 

(b)                                 There
has been no Material Adverse Effect to the business or financial condition of
the Relevant Company (or the business or consolidated financial condition of
the Group taken as a whole) since the later of (i) the Tranche C Advance
Utilisation Date and (ii) the last day of the last fiscal quarter in the
Relevant Company’s latest completed fiscal year for which interim financial
statements have been made available, except as set forth in such interim
financial statements (which, for the avoidance of doubt, include Nordic’s announcement
of preliminary FY 2005 results, dated May 25, 2005).  For the avoidance of doubt, neither (A) the
completion of the Restructuring substantially in accordance with the Binding
Restructuring Agreement, or (B) the Swedish moratorium proceedings, litigation
in connection with the Subordinated Notes Indenture and/or the Senior Notes
Indenture (and documents in relation to those indentures) or matters incidental
thereto and the consequences thereof, shall be considered a Material Adverse
Effect for the purpose of this paragraph (b).

 

(c)                                  The
financial statements most recently filed with the Commission under cover of Form 6-K have been prepared in accordance with the
Applicable Accounting Principles and (if audited) present a true and fair view
of or (if quarterly unaudited) fairly present the Relevant Company’s and (if
consolidated) its Subsidiaries’ consolidated financial condition as at the date
to which they were drawn up, subject in the case of quarterly financial
statements to normal year end adjustments.

 

64

 

17.13      Security Interests

 

Except as
permitted by Clause 19.9 (Limitation on
Security Interests) no Security Interest exists on the undertaking,
property or assets, present or future, of it or any of the Subsidiary
Guarantors.

 

17.14      Ownership of assets

 

It has, and
each of the Subsidiary Guarantors has, good title to or valid leasehold or
other valid right to use all its material assets to the extent required to
conduct its business as it is being conducted.

 

17.15      Intellectual Property

 

(a)                                  It
or one or more or the Subsidiary Guarantor owns or has licensed to it or
otherwise has adequate rights to use all the Intellectual Property which is
material to the operation of the business of the Group save to the extent that
the same would not have a Material Adverse Effect.

 

(b)                                 It
and each of the Subsidiary Guarantor has taken all actions (including payment
of fees) necessary to maintain in full force and effect any such Intellectual
Property referred to in paragraph (a) above owned by it.

 

(c)                                  In
carrying on its business, neither it nor any member of the Group infringes any
Intellectual Property rights of any third party in any way which has had or
could reasonably be expected to have a Material Adverse Effect.

 

(d)                                 It
is not aware of any adverse circumstances relating to validity, subsistence or
use of any of its or its Subsidiaries’ Intellectual Property which reasonably
be expected to have a Material Adverse Effect.

 

17.16      Insurances

 

It and the
Subsidiary Guarantors currently have in effect insurances meeting the
requirements of Clause 19.5 (Maintenance of
Insurance).

 

17.17      Financial Indebtedness

 

Except as
permitted by Clause 19.6 (Limitation on
Financial Indebtedness), it and the Subsidiary Guarantors have no
Financial Indebtedness.

 

17.18      Tax Liabilities

 

(a)                                  It
and each of the Subsidiary Guarantors has paid and discharged all Taxes imposed
upon each of them on the day on which this representation is to be made by it
under this Agreement within the time period allowed without incurring penalties
(save to the extent that (i) payment is being contested in good faith, (ii) it
has maintained adequate reserves for those Taxes and (iii) payment can be
lawfully withheld).

 

(b)                                 Neither
it nor any of the Subsidiary Guarantors is overdue in the filing of any Tax
returns.

 

65

 

(c)                                  No
claims are being or are reasonably likely to be asserted against, and no
investigation has been started or threatened (to the best of its knowledge and
belief) by any tax authority for assessment periods ending before the date
hereof in respect of, it or any of the Subsidiary Guarantors with respect to
Taxes which, would have a Material Adverse Effect.

 

17.19      Employee matters

 

No labour
disputes involving its employees or the employees of any of the Subsidiary
Guarantors are current and, to the best of its knowledge and belief, no formal
steps (including without limitation convening a meeting or holding a ballot)
has been taken to commence a strike or other labour dispute by any thereof,
except any disputes which (individually or in the aggregate) has not had and
are not reasonably likely to have a Material Adverse Effect.

 

17.20      Pension schemes and social security
obligations

 

(a)                                  It
and each of the Subsidiary Guarantors is in substantial compliance with all
applicable laws and contracts relating to labour and social security paid and
has all fees required to be paid by it to enable it to participate in the
necessary pension schemes and employee benefit plans.

 

17.21      No proceedings pending or threatened

 

(a)                                  Save
for the Swedish moratorium proceedings, and litigation in connection with the
Subordinated Notes Indenture or related documents, and/or the Senior Notes
Indenture or related documents, no litigation, arbitration or administrative
proceedings of or before any court, arbitral body or agency, and no regulatory
enquiry involving it or any of the Subsidiary Guarantors, which, if adversely
determined, might reasonably be expected to have a Material Adverse Effect have
(to the best of its knowledge and belief) been started or threatened against it
or any of the Subsidiary Guarantors.

 

(b)                                 It
is, and the Subsidiary Guarantors are, in compliance in all material respects
with all laws, regulations, statutes, judgements, orders, licences, permits and
governmental and regulatory consents applicable to it, any of the Subsidiary
Guarantors or any of its or their assets, except for any instances of non
compliance which is not reasonably likely to have a Material Adverse Effect.

 

17.22      Environmental

 

(a)                                  It
and each of the Subsidiary Guarantors has performed and observed in all
material respects all Environmental Law, all material terms and conditions of
all Environmental Permits and all other material covenants, conditions,
restrictions or agreements directly or indirectly concerned with any
contamination, pollution or waste or the release or discharge of any toxic or
hazardous substance in connection with any real property which is or was at any
time owned, leased or occupied by it or any of the Subsidiary Guarantors or on
which it or any of the Subsidiary Guarantors has conducted any activity where
failure to do so might reasonably be expected to have a Material Adverse
Effect.

 

66

 

(b)                                 No
Environmental Claim has been commenced or (to the best of its knowledge and
belief) is threatened against it or any of the Subsidiary Guarantors where that
claim would be reasonably likely, if determined against it or such Subsidiary
Guarantor, to have a Material Adverse Effect.

 

17.23      Centre of main interests and
establishments

 

For the
purposes of the Council of the European Union Regulation No. 1346/2000 on
Insolvency Proceedings (the “Regulation”),
its centre of main interest (as that term is used in Article 3(1) of
the Regulation) is situated in its jurisdiction of incorporation and it has no “establishment”
(as that term is used in Article 2(h) of the Regulation) in any other
jurisdiction.

 

17.24      Repetition

 

(a)                                  The
Repeating Representations are deemed to be made by the relevant Borrower on the
date of each Utilisation Request for an Advance to be made to that Borrower,
each Utilisation Date for an Advance to be made to that Borrower, and the first
day of each Interest Period for an Advance to be made to that Borrower.

 

(b)                                 The
representations contained in clause 17.12(b) (Material Adverse Effect) shall be repeated by the Tranche A
Borrower on the Tranche A Advance Utilisation Date.

 

(c)                                  When
a representation is repeated it is applied to the circumstances existing at the
time of the repetition save to the extent expressly stated otherwise.

 

18           INFORMATION
UNDERTAKINGS

 

18.1        Provision of Financial Information

 

(a)                                  Whether
or not it is required by the Commission, the Relevant Company shall provide to
the Facility Agent within the time periods specified in the Commission’s rules and
regulations (unless otherwise noted):

 

(i)                                     within
120 days after the end of its then-applicable fiscal year all annual financial
statements that would be required in a filing with the Commission on Form 20-F
(including an “Operating and Financial Review and Prospects” section, and with
respect to the annual financial statements only, a report thereon by the
Relevant Company’s certified independent auditors) (save for annual financial
statements in respect of fiscal year ending in February 2005 which will be
delivered immediately upon them becoming available);

 

(ii)                                  within
the time period specified in the Commission’s rules and regulations, all quarterly
financial information that would be required to be contained in a filing with
the Commission on Form 10-Q if the Relevant Company were required to file
that form (including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations”, except that such information will only be

 

67

 

prepared in
accordance with generally accepted accounting principles in Sweden); and

 

(iii)                               all
current reports that would be required to be furnished to the Commission on Form 6-K
if the Relevant Company were required to furnish that form.

 

(b)                                 If
the Relevant Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries, then the quarterly and annual financial information required by
the preceding paragraph will include a reasonably detailed presentation, either
on the face of the financial statements or in the footnotes thereto, and in
Management’s Discussion and Analysis of Financial Condition and Results of
Operations or Operating and Financial Review and Prospects section, of the
financial condition and results of operations of the Relevant Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Relevant Company.

 

(c)                                  Whether
or not required by the Commission, the Relevant Company will file a copy of all
of the information and reports referred to in paragraphs (a) except for
the report specified in (a)(ii) and (b) above with the Commission for
public availability within the time periods specified in the Commission’s rules and
regulations (unless the Commission will not accept such a filing) and make such
information available to securities analysts and prospective investors upon
request.

 

(d)                                 Delivery
of such reports, information and documents to the Facility Agent is for
informational purposes only and the Facility Agent’s receipt of such shall not
constitute constructive notice to the Facility Agent or any Lender of any
information contained therein or determinable from information contained
therein, including the Relevant Company’s compliance with any of its covenants
hereunder (as to which the Facility Agent and each Lender is entitled to
conclusively rely exclusively on Compliance Certificates and Officer’s
Certificates).  The Facility Agent shall
not be required to review any documents submitted to it pursuant to this clause
18 or assess its compliance with this Agreement or any other rule or legal
requirement.

 

18.2        Statement by Officers as to Default;
Compliance Certificates

 

(a)                                  The
Relevant Company will deliver to the Facility Agent, within 60 days after the
end of each fiscal year of the Relevant Company ending after the date hereof a
Compliance Certificate signed by its principal executive officer, principal
financial officer or principal accounting officer, stating whether or not to
the best knowledge of the signatory thereof after due enquiry, the Relevant
Company is in default in the performance and observance of any of the terms, provisions
and conditions of this Agreement, and if the Relevant Company shall be in
default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

 

(b)                                 The
Relevant Company shall deliver to the Facility Agent, as soon as possible and
in any event within 15 days after the Relevant Company becomes aware of the
occurrence of a Default or an Event of Default, a Compliance

 

68

 

Certificate
setting forth the details of such Default or Event of Default, and the action
which the Relevant Company proposes to take with respect thereto.

 

18.3        Auditors

 

If the
Facility Agent wishes to discuss the financial position of any member or
members of the Group with the Auditors, the Facility Agent shall notify the
Relevant Company, stating the questions or issues which the Facility Agent
wishes to discuss with the Auditors, and the Relevant Company shall authorise
and instruct the Auditors (at the expense of the Relevant Company) to discuss the
financial position of each member of the Group with the Facility Agent and to
disclose to the Facility Agent for the Finance Parties any information which
the Facility Agent may reasonably request.

 

18.4        “Know your
Client” checks

 

(a)           If:

 

(i)                                     the
introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation made after the date of this Agreement;

 

(ii)                                  any
change in the status of an Obligor after the date of this Agreement; or

 

(iii)                               a
proposed assignment or transfer by a Lender of any of its rights and
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

 

obliges the
Facility Agent or any Lender (or, in the case of paragraph (iii) above,
any prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, each Obligor shall promptly upon the request of
the Facility Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Facility
Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in
the case of the event described in paragraph (iii) above, on behalf of any
prospective new Lender) in order for the Facility Agent, such Lender or, in the
case of the event described in paragraph (iii) above, any prospective new
Lender to carry out and be satisfied it has complied with all necessary “know
your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

 

(b)                                 Each
Lender shall promptly upon the request of the Facility Agent supply, or procure
the supply of, such documentation and other evidence as is reasonably requested
by the Facility Agent (for itself) in order for the Facility Agent to carry out
and be satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

 

69

 

19                                  COVENANTS

 

19.1        Payment of Principal, Premium and
Interest

 

The Relevant
Company will duly and punctually pay the principal of (and premium, if any) and
interest and any other amounts due, and payable by it under the Finance
Documents in accordance with the terms of the Finance Documents.

 

19.2        Existence

 

Subject to Article 8
of the Senior Notes Indenture, the Relevant Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its legal
existence, rights (charter and statutory) and franchises; provided, however,
that the Relevant Company shall not be required to preserve any such right or
franchise if its board of directors in good faith shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Relevant Company or its Subsidiaries, as the case may be, and that the loss
thereof is not disadvantageous in any material respect to the Lenders.

 

19.3        Maintenance of Properties

 

The Relevant
Company shall cause all properties used or useful in the conduct of its
business or the business of any Restricted Subsidiary of the Relevant Company
to be maintained and kept in good condition, repair and working order and
supplied with all necessary equipment and will cause to be made all necessary
repairs, renewals, replacements, betterments and improvements thereof, all as
in the judgment of the Relevant Company may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided, however, that nothing in this Clause shall prevent the
Relevant Company or Nordic from discontinuing the operation or maintenance of
any of such properties if such discontinuance is, as determined by its board of
directors of the Relevant Company or Nordic in good faith, desirable in the
conduct of its business or the business of any Restricted Subsidiary and not
disadvantageous in any material respect to the Lenders.

 

19.4        Payment of Taxes and Other Claims

 

The Relevant
Company shall pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (i) all taxes, assessments and governmental
charges levied or imposed upon the Relevant Company or any of its Restricted
Subsidiaries or upon the income, profits or property of the Relevant Company or
any of its Restricted Subsidiaries, and (ii) all lawful claims for labour,
materials and supplies which, if unpaid, might by law become a lien upon the
property of the Relevant Company, or any of its Restricted Subsidiaries;
provided, however, that the Relevant Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith
by appropriate proceedings.

 

19.5        Maintenance of Insurance

 

The Relevant
Company shall, and shall cause its Restricted Subsidiaries to, keep insurance
with insurers believed by the Relevant Company to be responsible of such

 

70

 

type and in
such amounts as the Relevant Company reasonably believes are customary for
similar companies.

 

19.6        Limitation on Financial Indebtedness

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, Incur any Financial Indebtedness
(including Acquired Debt), and the Relevant Company will not issue any Disqualified
Share Capital; provided, however, that if no Default or Event of Default will
have occurred and be continuing at the time of or as a consequence of the
Incurrence of any such Financial Indebtedness or the issuance of any such
Disqualified Share Capital (or if such Event of Default does exist, such Event
of Default is cured concurrently with such Incurrence or issuance, as the case
may be), (i) the Relevant Company and any of its Restricted Subsidiaries
may incur Financial Indebtedness or issue Disqualified Share Capital, and (ii) any
Subsidiary Guarantor, other than Swebus Busco AB, may incur Financial
Indebtedness if such Financial Indebtedness is (a) Financial Indebtedness
represented by a Revolving Credit Facility, (b) Financial Indebtedness
represented by Capital Lease Obligations, (c) Financial Indebtedness
represented by purchase money obligations or (d) Acquired Debt, in the
case of both of (i) and (ii) if the Fixed Charge Coverage Ratio for
the Relevant Company’s most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such additional Financial Indebtedness is Incurred or such Disqualified
Share Capital is issued would have been at least 2.0 to 1.0, determined on a
pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Financial Indebtedness had been incurred, or
the Disqualified Share Capital had been issued, as the case may be, at the
beginning of such four-quarter period. In computing the Fixed Charge Coverage
Ratio for the purpose of this Clause (a), the Relevant Company shall use
audited financial statements for the portions of the relevant period for which
audited financial statements are available on the date of determination and
unaudited financial statements based on the books and records of the Relevant
Company for the remaining portion of such period. The Relevant Company will be
permitted to rely in good faith on the financial and other data derived from its
books and records that are available on the date of determination in preparing
such unaudited financial statements. If the Relevant Company or its Restricted
Subsidiaries incurs Financial Indebtedness that, at the time of Incurrence,
would in the good faith determination of the Relevant Company or its Restricted
Subsidiaries be permitted under the requirements of this Agreement, such
Financial Indebtedness will be deemed to have been Incurred in compliance with
this Agreement notwithstanding any adjustments made in good faith to the
Relevant Company’s financial statements after such Financial Indebtedness is
incurred which effect the Fixed Charge Coverage Ratio for any period; provided,
however, that any such adjustments will be taken into account in computing the
Fixed Charge Coverage Ratio in respect of any subsequent Incurrence of
Financial Indebtedness.

 

71

 

(b)                                 Subject
to clauses (c) and (d) below, so long as no Default or Event of
Default will have occurred and be continuing or would be caused thereby, Clause
(a) of this clause will not prohibit the incurrence of any of the
following items of Financial Indebtedness (collectively, “Permitted Debt”):

 

(i)                                     the
incurrence by Nordic of Financial Indebtedness represented by the Notes and
Financial Indebtedness of Subsidiary Guarantors (except Nordic) pursuant to the
Note Guarantees;

 

(ii)                                  the
incurrence by the Relevant Company and its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to refund, refinance or replace, Financial Indebtedness (other than
intercompany Financial Indebtedness between or among the Relevant Company and
any of its Restricted Subsidiaries) that was permitted by this Agreement to be
incurred pursuant to this Clause 19.6;

 

(iii)                               the
incurrence by the Relevant Company or any Subsidiary Guarantor of intercompany
Financial Indebtedness between or among the Relevant Company, Nordic and any of
its respective Wholly Owned Restricted Subsidiaries; provided, however that (i) if
the Relevant Company or a Subsidiary Guarantor is the obligor of such Financial
Indebtedness, such Financial Indebtedness shall be expressly subordinated to
the prior payment in full in cash of all the Obligations in respect of the
Notes; and (ii) (a) any subsequent issuance or transfer of Equity
Interests that results in any such Financial Indebtedness being held by a
Person other than the Relevant Company, Nordic or a Wholly Owned Restricted
Subsidiary that is a Subsidiary Guarantor and (b) any sale or other
transfer of any such Financial Indebtedness to a Person that is not either the
Relevant Company or a Wholly Owned Subsidiary that is a Subsidiary Guarantor
thereof; shall be deemed, in each case, to constitute an incurrence of such
Financial Indebtedness by the Relevant Company or such Subsidiary, as the case
may be, that was not permitted by this Clause 19.6(b)(iii) (Limitation on Financial Indebtedness);

 

(iv)                              the
incurrence by the Relevant Company or any of its Restricted Subsidiaries of
Hedging Obligations (i) that are incurred for the purpose of fixing or
hedging interest rate risk with respect to any floating rate Financial
Indebtedness, or fixing or hedging foreign currency exchange rate risk with
respect to any Financial Indebtedness, in each case that is permitted by the
terms of this Agreement to be outstanding or (ii) that are incurred for
the purpose of fixing or hedging fuel price risk incurred in the ordinary
course of business provided that if, in accordance with GAAP, such incurrence
must be recorded as a liability in the balance sheet of the Relevant Company or
its Restricted Subsidiaries, the aggregate liability under the Hedging
Obligations so recorded shall not exceed EUR 15,000,000 at any time;

 

72

 

(v)                                 the
guarantee by the Relevant Company or Nordic of Financial Indebtedness of a
Restricted Subsidiary of the Relevant Company that was permitted to be incurred
by another paragraph of this Clause 19.6;

 

(vi)                              the
incurrence by the Relevant Company or any Subsidiary Guarantor of additional
Financial Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding, including all Permitted Refinancing
Indebtedness incurred to refund, refinance or replace any Financial
Indebtedness incurred pursuant to this paragraph (vi), not to exceed SEK
245,000,000;

 

(vii)                           in
respect of the Relevant Company or its Restricted Subsidiaries the accrual of
interest, the accretion or amortization of original issue discount, the
capitalization of interest, the payment of interest on any Financial
Indebtedness in the form of additional Financial Indebtedness with the same
terms as the Financial Indebtedness on which such interest accrued, and the
payment of dividends on Disqualified Share Capital in the form of additional
shares of the same class of Disqualified Share Capital, provided, in each such
case, that the amount thereof is included in Fixed Charges of the Relevant
Company or Nordic as accrued;

 

(viii)                        the
incurrence of Financial Indebtedness by the Relevant Company or any of its
Restricted Subsidiaries representing or comprising Obligations under
performance and surety bonds provided by the Relevant Company or any of its
Restricted Subsidiaries in the ordinary course of business;

 

(ix)                                the
incurrence of Financial Indebtedness by the Relevant Company or any of its
Restricted Subsidiaries represented by letters of credit, bankers’ acceptances,
surety bonds, performance bonds or similar instruments for the account of the
Relevant Company or such Restricted Subsidiary, as the case may be, in order to
provide for security for workers’ compensation claims, payment obligations in
connection with self-insurance or similar requirements in the ordinary course
of business;

 

(x)                                   the
incurrence of Financial Indebtedness by the Relevant Company or any of its
Restricted Subsidiaries arising from agreements either providing for
indemnification, adjustment of purchase price, earn out or other similar
obligations, in each case incurred or assumed in connection with the
disposition of any business or assets of the Relevant Company or a Restricted
Subsidiary of the Relevant Company or the disposition of a Restricted
Subsidiary, other than Guarantees of Financial Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or Restricted
Subsidiary for the purpose of financing such acquisition, provided, however,
that the maximum assumable liability in respect of all such Financial
Indebtedness will at no time exceed the gross proceeds actually received by the
Relevant Company and its Restricted Subsidiaries in connection with such
disposition;

 

73

 

(xi)                                intragroup
Financial Indebtedness represented by the Subordinated Shareholder Loan, the
Nordic Inter-Company Loan, the Limited Recourse Note, the Bus-Nordic Loan and
the Intragroup Capital Contribution or such other intragroup Financial
Indebtedness as may arise as a consequence of the actions specified in the
Structure Paper; and

 

(xii)                             Financial
Indebtedness owed by Bus in respect of the Subordinated Notes, as adjusted or
varied in accordance with the terms of the Subordinated Notes Indenture and/or
by any order handed down by a court of competent jurisdiction.

 

(c)                                  Notwithstanding
(a), and (b) above, from the date of this Agreement, (i) Holding
shall not be permitted to incur any Financial Indebtedness, save for its
Utilisation of the Tranche C Facility in accordance with the terms of this
Agreement and (ii) Bus shall not be permitted to incur any Financial
Indebtedness, save for utilisation of the Tranche A Facility and any cost and
expenses arising in connection with the Restructuring.

 

(d)                                 If
any Non-Recourse Debt of an Unrestricted Subsidiary ceases to be Non-Recourse
Debt, such event will be deemed to constitute an incurrence of Financial
Indebtedness by a Restricted Subsidiary of the Relevant Company.

 

(e)                                  For
purposes of determining compliance with this Clause 19.6, in the event that an
item of proposed Financial Indebtedness meets the criteria of more than one of
the categories of Permitted Debt described in Clauses (i) through (xi)
above, or is entitled to be incurred pursuant to paragraph (a) of this
Clause 19.6, the Relevant Company (i) will be permitted to classify such
item of Financial Indebtedness on the date of its incurrence in any manner that
complies with this Clause 19.6 and (ii) may from time to time reclassify
such item of Financial Indebtedness in any manner that complies with this
Clause 19.6, in each case without duplication.

 

(f)                                    For
purposes of determining compliance with any Swedish Kronor denominated
restriction on the incurrence of Financial Indebtedness denominated in another
currency, the SEK principal amount of all Financial Indebtedness will be
calculated in accordance with the best exchange rate obtainable by the Relevant
Company based on the relevant currency exchange rate in effect on the date of
such incurrence; provided that, if any Financial Indebtedness denominated in a
currency other than SEK is subject to a currency hedging agreement covering all
principal, premium, if any, and interest payable on such Financial
Indebtedness, the amount of such Financial Indebtedness expressed in SEK will
be as provided in such currency hedging agreement. The principal amount of any
Financial Indebtedness incurred to refinance other Financial Indebtedness, if
incurred in a different currency from the Financial Indebtedness being
refinanced, will be calculated in accordance with the best exchange rate
obtainable by the Relevant Company rate in effect on the date of such
refinancing applicable to the currencies in which such respective Financial
Indebtedness is denominated.

 

74

 

19.7        Limitation on Restricted Payments

 

(a)                                  The
Relevant Company shall not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly:

 

(i)                                     declare
or pay any dividend or make any other payment or distribution on account of or
with respect to the Relevant Company’s or any of its Restricted Subsidiaries’
Equity Interests (including, without limitation, any payment in connection with
any merger or consolidation involving the Relevant Company or any of its
Restricted Subsidiaries) or to the direct or indirect holders of the Relevant
Company’s or any of its Restricted Subsidiaries’ Equity Interests in their
capacity as such (other than dividends or distributions payable in Equity
Interests (other than Disqualified Share Capital) of the Relevant Company or
payable to the Relevant Company or Nordic by a Wholly Owned Restricted
Subsidiary of the Relevant Company or Nordic to another Wholly Owned Restricted
Subsidiary of the Relevant Company that is a Subsidiary Guarantor);

 

(ii)                                  purchase,
redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving the Relevant Company
or any of its Restricted Subsidiaries) any Equity Interests of the Relevant
Company or of any direct or indirect parent of the Relevant Company or of any
Restricted Subsidiary of the Relevant Company or of any Unrestricted Subsidiary
of the Relevant Company (other than any Equity Interests of any Restricted
Subsidiary owned by the Relevant Company or any Wholly Owned Restricted
Subsidiary of the Relevant Company that is a Subsidiary Guarantor);

 

(iii)                               make
any payment on account of or with respect to, or purchase, redeem, defease,
prepay, decrease or otherwise acquire or retire for value any Financial
Indebtedness that is subordinated in right of payment to the Notes, except a
payment of interest or principal at the Stated Maturity thereof; or

 

(iv)                              make
any Restricted Investment (all such payments and other actions set forth, but
not excluded from, in Clauses (i) through (iv) above being
collectively referred to as “Restricted
Payments”),

 

unless, at the
time of and after giving effect to such Restricted Payment:

 

(A)                              no
Default or Event of Default will have occurred and be continuing or would occur
as a consequence thereof; and

 

(B)                                the
Relevant Company or any of its Restricted Subsidiaries would, at the time of
such Restricted Payment and after giving pro forma effect thereto as if such
Restricted Payment had been made at the beginning of the applicable
four-quarter period, have been permitted to incur at least SEK 1.0 of
additional Financial Indebtedness pursuant to the Fixed Charge Coverage

 

75

 

Ratio test set
forth in paragraph (a) of Clause 19.6 (Limitation
on Financial Indebtedness); and

 

(C)                                such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Relevant Company and its Restricted Subsidiaries after the
date of this Agreement (excluding Restricted Payments permitted by paragraphs
(b)(ii), (b)(iii) and (b)(v) of this Clause, but including Restricted
Payments permitted by Clauses (b)(i) and (b)(iv), of this Clause, is less
than the sum, without duplication, of:

 

(I)                                    50%
of the Consolidated Net Income of the Relevant Company for the period (taken as
one accounting period) from the date of this Agreement to the end of the
Relevant Company’s most recently ended fiscal quarter for which financial
statements are available at the time of such Restricted Payment (or, if such
Consolidated Net Income for such period is a deficit, less 100% of such
deficit), plus

 

(II)                                100%
of the aggregate net cash proceeds received by the Relevant Company and its
Subsidiaries since the date of this Agreement as a contribution to its common
equity capital or from the issue or sale of Equity Interests of the Relevant
Company (other than Disqualified Share Capital) or from the issue or sale of
convertible or exchangeable Disqualified Share Capital or convertible or exchangeable
debt securities of the Relevant Company that have been converted into or
exchanged for such Equity Interests (other than Equity Interests (or
Disqualified Share Capital or debt securities) sold to a Subsidiary of the
Relevant Company) and excluding any such proceeds to the extent used to redeem
Notes, plus

 

(III)                            to
the extent that any Restricted Investment that was made after the date of this
Agreement is sold for Cash Equivalents or otherwise liquidated or repaid for
Cash Equivalents, the lesser of (x) the cash return of capital with respect to
such Restricted Investment (less the cost of disposition, if any) and (y) the
initial amount of such Restricted Investment.

 

(b)                                 So
long as (x) no Default or Event of Default has occurred and is continuing and
(y) no notification thereof has been given to the relevant Borrower by the
Security Agent (such notification being deemed ineffective if the Event(s) of
Default on which it is based have been waived or cured), the preceding
provisions will not prohibit and the requirements of paragraphs (A) to (C) above
shall not apply to:

 

76

 

(i)                                     the
payment of any dividend within 60 days after the date of declaration thereof,
if at said date of declaration such payment would have complied with the
provisions of this Agreement ;

 

(ii)                                  payments
of dividends or distributions in order to provide funds to pay amounts required
to be paid by the Relevant Company or any of its Subsidiaries in connection
with its reporting obligations under United States federal securities laws or
amounts required by Bus or Holding to pay costs associated with its activities
as a holding company, provided that such amounts have actually been incurred by
Bus or Holding, as the case may be, or are expected to be incurred within 7
days of such payment and provided further that such amounts do not exceed an
aggregate of SEK 10,000,000 in any financial year;

 

(iii)                               payments
of dividends or distributions, or redemption of share capital, or payments or prepayments
of amounts due or outstanding under the Subordinated Shareholder Loan, the
Intragroup Capital Contribution and the Nordic Inter-Company Loan, in an
aggregate amount of up to the value of all Cash Interest payments required to
be made in respect of the Tranche A Advance and the Tranche C Advances, to be
applied to the Cash Interest balance outstanding or in the repayment of the
principal amount of the relevant Advance that represents Cash Interest that has
been capitalised (whether relating to the then current interest period or any
prior interest period in which Cash Interest was not paid when due), provided
that (in the case of a payment of Cash Interest) no such payment may be made by
the Relevant Company or any Restricted Subsidiary more than 7 days in advance
of the date on which Cash Interest payments on the Tranche A Advance or any
Tranche C Advance are made in accordance with their terms;

 

(iv)                              the
redemption, repurchase, retirement, defeasance or other acquisition of any of
its subordinated Financial Indebtedness of the Relevant Company or any of its
Restricted Subsidiary or of any Equity Interests of the Relevant Company or any
Restricted Subsidiary in exchange for, or out of the net cash proceeds of the
substantially concurrent sale (other than to a Subsidiary of the Relevant
Company) of, Equity Interests of the Relevant Company (other than Disqualified
Share Capital); provided that the amount of any such net cash proceeds that are
utilized for any such redemption, repurchase, retirement, defeasance or other
acquisition will be excluded from (a)(iv)(C)(II) above;

 

(v)                                 the
defeasance, redemption, repurchase or other acquisition of any Financial
Indebtedness of the Relevant Company and its Restricted Subsidiaries that is
subordinated in right of payment to the Notes with the net cash proceeds from
an incurrence of Permitted Refinancing Indebtedness;

 

(vi)                              the
defeasance, redemption, prepayment, decrease, repurchase or acquisition of the
Subordinated Shareholder Loan, the Intragroup Capital Contribution, the Nordic
Inter-Company Loan, the Bus-Nordic

 

77

 

Loan and the
Limited Recourse Note or the payment of any interest thereon;

 

(vii)                           the
repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Relevant Company or any Restricted Subsidiary of the
Relevant Company held by (i) any member of the Relevant Company’s (or any
of its Restricted Subsidiaries’) management pursuant to any management equity
subscription agreement or stock or share option agreement in effect as of the
date of this Agreement or (ii) any employee of the Relevant Company or any
of its Restricted Subsidiaries upon the retirement of any such employee;
provided that the aggregate price paid for all such repurchased, redeemed,
acquired or retired Equity Interests will not exceed SEK 10,000,000 in any
twelve month period;

 

(viii)                        other
Restricted Payments in an aggregate amount not to exceed SEK 20,000,000;

 

(ix)                                the
payment of any dividends, distributions or contributions of up to 50% of Free
Cash Flow in excess of the sum of SEK 100,000,000 and amounts paid in respect
of the Intragroup Capital Contribution under paragraph (iii) hereof, in
any given fiscal year;

 

(x)                                   any
such further distribution by Nordic and Holding, of Excess Proceeds (as defined
in Clause 19.12(d)) as may be permitted hereunder;

 

(xi)                                any
payment or distribution to be made by Nordic in respect of the Intragroup
Capital Contribution;

 

(xii)                             any
payment or distribution to be made by any Restricted Subsidiary to the Relevant
Company in respect of the principal amount of the Financial Indebtedness
incurred by the Relevant Company under this Agreement; and

 

(xiii)                          any
payment to Bus in respect of the Intragroup Capital Contribution for the
purpose of meeting costs and expenses incurred by Bus in defending any
litigation brought against it arising out of the action taken by it in
commencing the Reorganisation (together with any other costs and expenses
attributable to any delays occurring as a result of such litigation) in
circumstances where:

 

(A)                              any
contingency amounts available to it for funding such costs have been exhausted
or already set aside in respect of such costs and expenses previously incurred;
and

 

(B)                                Nordic
has been requested, and has declined, to provide the requisite funding,

 

provided that
such payments shall not exceed EUR 1,000,000 less the contingency amounts
reference in preceding sub-paragraph (A).

 

78

 

The amount of
all Restricted Payments (other than cash) will be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be
transferred or issued by the Relevant Company or such Restricted Subsidiary, as
the case may be, pursuant to the Restricted Payment. The fair market value of
any assets or securities that are required to be valued by this Clause will be
determined by the board of directors of the Relevant Company, or Nordic (in
respect of any other Restricted Subsidiaries) whose resolution with respect
thereto (or an Officer’s Certificate certifying such determination of the board
of directors) will be delivered to the Facility Agent. The board of directors’
determination must be based upon an opinion or appraisal issued by an appraisal
or investment banking firm of international standing if the fair market value
exceeds SEK 400,000,000. Not later than the date of making any Restricted
Payment in an amount in excess of SEK 40,000,000, the Relevant Company will
deliver to the Facility Agent an Officers’ Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Clause 19.7 were computed.

 

In computing
Consolidated Net Income of the Relevant Company for the purpose of the
(a)(iv)(C)(I) above, the Relevant Company will use audited financial statements
for the portions of the relevant period for which audited financial statements
are available on the date of determination and unaudited financial statements
based on the books and records of the Relevant Company for the remaining
portion of such period. The Relevant Company or any of its Restricted
Subsidiaries will be permitted to rely in good faith on the financial and other
data derived from its books and records that are available on the date of
determination in preparing such unaudited financial statements. If the Relevant
Company or any of its Restricted Subsidiaries makes a Restricted Payment that,
at the time of the making of it, would in the good faith determination of the
Relevant Company or any of its Restricted Subsidiaries be permitted under the
requirements of this Agreement, such Restricted Payment will be deemed to have
been made in compliance with this Agreement notwithstanding any adjustments
made in good faith to the Relevant Company’s financial statements after such
Restricted Payment is made which effect Consolidated Net Income of the Relevant
Company for any period; provided, however, that any such adjustments will be
taken into account in computing Consolidated Net Income in respect of any
subsequent Restricted Payment.

 

19.8        Limitations on Dividends and Other
Payment Restrictions Affecting Subsidiaries

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted Subsidiaries
to, directly or indirectly, create or permit to exist or become effective any
encumbrance or restriction on the ability of any Subsidiary to:

 

(i)                                     pay
dividends or make any other distributions on its Share Capital or with respect
to any other interest or participation in, or measured by, its profits or
reserves, to the Relevant Company or any of the Relevant Company’s Restricted
Subsidiaries, or pay any indebtedness owed to the Relevant Company or any of
the Relevant Company’s Restricted Subsidiaries;

 

79

 

(ii)                                  make
loans or advances to the Relevant Company or any of the Relevant Company’s
Restricted Subsidiaries; or

 

(iii)                               transfer
any of its properties or assets to the Relevant Company or any of the Relevant
Company’s Restricted Subsidiaries.

 

(b)                                 However,
the preceding restrictions will not apply to encumbrances or restrictions
existing under or by reason of:

 

(i)                                     the
Senior Notes Indenture, existing Financial Indebtedness, the Security
Documents, the Notes, the Subordinated Notes and the Senior Notes Indenture
Security Documents;

 

(ii)                                  applicable
law;

 

(iii)                               any
instrument governing Financial Indebtedness or Share Capital of a Person
acquired by a Relevant Company or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Financial
Indebtedness was incurred in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired, provided that, in the case of
Financial Indebtedness, such Financial Indebtedness was permitted by the terms
of this Agreement to be incurred;

 

(iv)                              customary
non-assignment provisions in leases entered into in the ordinary course of
business and consistent with then current industry practices;

 

(v)                                 purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions on the transfer or encumbrance of the property so acquired;

 

(vi)                              any
agreement for sale or other disposition of a Restricted Subsidiary that
restricts distributions or transfers or assets by such Restricted Subsidiary
pending the consummation or such sale or other disposition; and

 

(vii)                           Security
Interests securing Financial Indebtedness otherwise permitted to be incurred
pursuant to Clause 19.9 (Limitation on
Security Interests) that limit the right of the Relevant Company or
any of its Restricted Subsidiaries to dispose of the assets subject to such
encumbrance.

 

19.9        Limitation on Security Interests

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, assume or suffer to
exist any Security Interests of any kind securing Financial Indebtedness,
Attributable Debt or trade payables on any property or asset now owned or
hereafter acquired, except Permitted Security Interests.

 

80

 

(b)                                 Unless
and until the Senior Notes Trustee confirms to the Security Agent that it has
taken possession of the Collateral and that such Collateral has been perfected
under local laws, neither the Relevant Company nor any of its Subsidiaries can
incur any debt secured by pledges expressed to be senior to, or pari passu
with, the security then existing in favour of the Notes provided that this
limitation does not apply to any Security Interest created in relation to the
Notes the Subordinated Shareholder Loan and provided further that this
limitation does not apply to any Permitted Security Interest falling within
paragraphs (b), (h), (j) to (n) and (q) of the definition of Permitted Security
Interests.

 

19.10      Limitation on Sale and Leaseback
Transactions

 

The Relevant
Company shall not, and will not permit any of its Restricted Subsidiaries to,
enter into any Sale and Leaseback Transactions; provided that the Relevant
Company and its Restricted Subsidiaries may enter into a Sale and Leaseback
Transaction if:

 

(a)           the Relevant Company or its
Restricted Subsidiaries could have:

 

(i)                                     incurred
Financial Indebtedness in an amount equal to the Attributable Debt relating to
such Sale and Leaseback Transaction under the Fixed Charge Coverage Ratio test
in Clause (a) of Clause 19.6 (Limitation
on Financial Indebtedness); and

 

(ii)                                  incurred
a Security Interest to secure such Financial Indebtedness pursuant to Clause
19.9 (Limitation on Security Interests);

 

(b)                                 the
gross cash proceeds of such Sale and Leaseback Transaction are at least equal
to the fair market value, as determined in good faith by the board of directors
of the Relevant Company or Nordic and set forth in an Officers’ Certificate
delivered to the Facility Agent, of the property that is the subject of such
Sale and Leaseback Transaction; and

 

(c)                                  the
transfer of assets in such Sale and Leaseback Transaction is permitted by, and
the Relevant Company applies the proceeds of such transaction in compliance
with Clause 19.12 (Limitations on Certain
Asset Sales).

 

19.11      Limitation on Transactions with Affiliates
and Related Persons

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transactions, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate (each, an “Affiliate
Transaction”), unless:

 

(i)                                     such
Affiliate Transaction is on terms that are no less favourable to the Relevant
Company or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction at such time on an arm’s length basis by
the Relevant Company or such Restricted

 

81

 

Subsidiary
with a Person which is not an Affiliate of the Relevant Company or such
Restricted Subsidiary; and

 

(ii)                                  the
Relevant Company delivers to the Facility Agent:

 

(A)                              with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of SEK 100,000,000, an
opinion in form and substance satisfactory to the Facility Agent (acting on the
instructions of the Majority Lenders) (acting reasonably) as to the fairness to
the Lenders of such Affiliate Transaction from a financial point of view issued
by an appraisal or investment banking firm of international standing.

 

(B)                                with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of SEK 10,000,000, a
resolution of its board of directors, certified in an Officers’ Certificate,
resolving that such Affiliate Transaction complies with this Clause and that such
Affiliate Transaction has been approved by a majority of the disinterested
members of its board of directors; and

 

(iii)                               Notwithstanding
Clauses 19.6 to 19.11 inclusive and Clause 19.12, the Relevant Company or any
of its Restricted Subsidiaries may enter into any Affiliate Transaction in
connection with the Restructuring, including, without limitation, transactions
related to the Notes, the Subordinated Shareholder Loan, the Limited Recourse
Note, the Intragroup Capital Contribution, activities as set out in the Agreed
Costs Schedule, the Structure Paper and this Agreement, without complying with
the preceding provisions.

 

(b)                                 The
following items will not be deemed to be Affiliate Transactions and therefore
will not be subject to the provisions of paragraph (a) of this Clause:

 

(i)                                     reasonable
fees and compensation paid to and indemnity provided on behalf of, officers,
directors, employees or consultants of the Relevant Company or any Restricted
Subsidiary of the Relevant Company in the ordinary course of business and
consistent with the past practice of the Relevant Company or such Restricted
Subsidiary and reasonable fees and compensation and in respect of the
Management Services Agreement, all as determined in good faith by the Relevant
Company’s board of directors or senior management;

 

(ii)                                  transactions
exclusively between or among the Relevant Company and any of its Wholly Owned
Restricted Subsidiaries or exclusively between or among such Wholly Owned
Restricted Subsidiaries, provided such transactions are not otherwise
prohibited by this Agreement ; and

 

(iii)                               Restricted
Payments that are not “Permitted Investments” and that are permitted by Clause
19.7 (Limitation on Restricted Payments).

 

82

 

19.12      Limitation on Certain Asset Sales

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

 

(i)                                     the
Relevant Company or the Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market
value of the assets or Equity Interests issued or sold or otherwise disposed;

 

(ii)                                  such
fair market value is determined in good faith by the Relevant Company’s or
Nordic’s board of directors and evidenced by a resolution of the Relevant
Company’s or its Nordic’s board of directors set forth in an Officers’
Certificate delivered to the Facility Agent;

 

(iii)                               at
least 75% of the consideration therefor received by the Relevant Company or such
Restricted Subsidiary is in the form of Cash Equivalents and is received at the
time of such issuance, sale or disposition. For purposes of this provision,
each of the following will be deemed to be Cash Equivalents:

 

(A)                              any
liabilities (as shown on the Relevant Company’s or such Restricted Subsidiary’s
most recent balance sheet), of the Relevant Company or any Restricted
Subsidiary (other than contingent liabilities and liabilities that are by their
terms subordinated in right of payment to the Notes) that are assumed by the
transferee of any such assets pursuant to a customary novation agreement that
releases the Relevant Company or such Restricted Subsidiary from such
liabilities;

 

(B)                                any
securities, notes or other obligations received by the Relevant Company or any
such Restricted Subsidiary from such transferee that are (subject to ordinary
settlement periods) converted within 30 days by the Relevant Company or such
Restricted Subsidiary into Cash Equivalents (to the extent of the Cash
Equivalents received in that conversion); and

 

(C)                                such
Asset Sale is made in compliance with the Security Documents or, in the case of
pledged assets, with the consent of the Security Agent as applicable.

 

(b)                                 Notwithstanding
the foregoing, the Relevant Company (or the Restricted Subsidiary, as the case
may be) may consummate an Asset Sale with respect to a bus which is then
subject to a Residual Value Guarantee provided that (a) the Relevant
Company (or the Restricted Subsidiary, as the case may be) receives consideration
at the time of such Asset Sale at least equal to the then applicable Specified
Residual Value for such bus, (b) 100% of the consideration therefor
received by the Relevant Company or such Restricted Subsidiary is in the form
of Cash Equivalents and is received at the time of such sale or disposition and
(c) such Asset Sale is made in compliance with

 

83

 

the Security
Documents or, in the case of pledged assets, with the consent of the Security
Agent as applicable.

 

(c)                                  Within
360 days after receipt of any Net Proceeds from an Asset Sale, the Relevant
Company will apply, or cause such Restricted Subsidiary to apply, such Net
Proceeds at its option to make an investment in properties and assets that
replace the properties and assets that were the subject of such Asset Sale or
in properties and assets that will be used in a Permitted Business (“Replacement Assets”). Pending the final
application of any such Net Proceeds, the Relevant Company may temporarily reduce
revolving credit borrowings of the Relevant Company or of any of its
Subsidiaries or otherwise invest such Net Proceeds in any manner that is not
prohibited by this Agreement.

 

(d)                                 Any
Net Proceeds from Asset Sales that are not applied or invested as provided in
the preceding paragraph (c) will be deemed to constitute “Excess Proceeds”.  When the aggregate amount of Excess Proceeds
exceeds SEK10,000,000, such Excess Proceeds will be applied to the redemption
of the Notes on the 361st
day after an Asset Sale (the “Asset Sale
Payment Date”) (or on the next day that is the last day of an
Interest Period provided that such next day is less than ninety (90) days after
the Asset Sale Payment Date) in accordance with Article 1014(4) of
the Senior Notes Indenture.

 

(e)                                  Any
Excess Proceeds that are not applied towards the redemption of the Notes in the
manner described in paragraph (d) above may be applied towards prepayment
of any amount then outstanding under the Facility (subject to the provisions of
sub-clause 7.11).  Any prepayment to be
made hereunder shall be made after each Borrower has served a written notice on
the Lenders of its intention to prepay the Facility 10 Business Days prior to
the date of prepayment.  If the Lenders
do not object to the Borrower’s intention to prepay the Facility in writing
before the proposed prepayment date, the relevant Borrower will prepay the
amount owing by it under the Facility on the proposed prepayment date, (or on
the next day that is the last day of an Interest Period).  If the Lenders object to the proposed
prepayment in writing prior to the proposed prepayment date, then the relevant
Borrower shall not be entitled to make any prepayment of the Facilities.  Upon the service of a notice or notices by
the relevant Borrower under this paragraph (e), the amount of Excess Proceeds
will be reset at zero.

 

19.13      Limitation on Sales and Issuances of
Equity Interests in Restricted Subsidiaries

 

(a)                                  The
Relevant Company shall not, and will not permit any of its Restricted Subsidiaries
to, transfer, convey, sell, lease or otherwise dispose, directly or indirectly,
of any Equity Interests (other than Share Capital constituting directors’
qualifying shares) in any Restricted Subsidiary of the Relevant Company to any
Person (other than the Relevant Company or a Wholly Owned Restricted Subsidiary
of the Relevant Company, provided that any such Equity Interest is pledged to
the Security Agent pursuant to an effective and perfected security interest at
the time of such transfer, conveyance, sale, lease or other disposition),
unless:

 

84

 

(i)                                     such
transfer, conveyance, sale, lease or other disposition is of all the Equity
Interests in such Restricted Subsidiary; and the cash Net Proceeds from such
transfer, conveyance, sale, lease or other disposition are applied in
accordance with Clause 19.12 (Limitation on
Certain Asset Sales),

 

(ii)                                  immediately
after giving effect to such transfer, conveyance, sale or other disposition
such Restricted Subsidiary would no longer constitute a Subsidiary or is
designated as an Unrestricted Subsidiary, the Net Proceeds from such transfer,
conveyance, sale or other disposition are applied in accordance with Clause
19.12 (Limitation on Certain Asset Sales),
and any remaining Investment in such Person would have been permitted to be
made under Clause 19.7 (Limitation on
Restricted Payments) if made on the date of such transfer,
conveyance, sale or other disposition, or

 

(iii)                               a
sale of the type described in the proviso to the definition of ‘Sale and Leaseback Transaction”.

 

(b)                                 In
addition, the Relevant Company will not permit any Restricted Subsidiary of the
Relevant Company to issue any of its Equity Interests (other than, if
necessary, shares of its Share Capital constituting directors’ qualifying
shares) to any Person other than to the Relevant Company or a Wholly Owned
Restricted Subsidiary of the Relevant Company that is a Subsidiary Guarantor)
or permit any Person (other than the Relevant Company or a Wholly Owned
Restricted Subsidiary of the Relevant Company that is a Subsidiary Guarantor)
to own any Preferred Shares of any Restricted Subsidiary of the Relevant
Company.

 

19.14      Waiver of Certain Covenants

 

The Relevant
Company may omit in any particular instance to comply with any covenant or
condition set forth in Clauses 19.2 (Existence)
to 19.13 (Limitation on Sales and Issuances
of Equity Interests in Restricted Subsidiaries) and also information
undertakings, as set out in Clause 18 if before the time for such compliance
the Majority Lenders either waive such compliance in such instance or generally
waive compliance with such covenant or condition, but no such waiver shall
extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Relevant Company and the duties of the Facility Agent in
respect of any such covenant or condition shall remain in full force and
effect.

 

19.15      Designation of Restricted and Unrestricted
Subsidiaries

 

(a)                                  The
board of directors of the Relevant Company may designate any Restricted
Subsidiary to be an Unrestricted Subsidiary if that designation would not cause
a Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary,
all outstanding Investments owned by the Relevant Company and its Restricted
Subsidiaries in the Subsidiary so designated will be deemed to be an Investment
made as of the time of such designation and will reduce the amount available
for Restricted Payments under paragraph (a) of Clause 19.7

 

85

 

(Limitation on Restricted Payments) or
Permitted Investments, as applicable. All such outstanding Investments will be
valued at their fair market value at the time of such designation. That
designation will only be permitted if such Restricted Payment would be
permitted at that time and if such Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary. The Relevant Company’s board of directors
may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if
such redesignation would not result in a Default.

 

(b)                                 Any
designation pursuant to this Clause 19.15 by the Relevant Company’s board of
directors will be evidenced to the Facility Agent by the prompt filing with the
Facility Agent of a certified copy of the resolution of such board of directors
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing conditions.

 

19.16      Permitted Activities and Amendment of
Security Documents

 

The Relevant
Company shall not engage in any business activity other than, acting as a
direct holding companies of its Subsidiaries, including activities being
undertaken on the date of this Agreement that are ancillary to such role. The
Relevant Company shall not Incur any material liabilities not directly related
to such activities other than the Incurrence of Financial Indebtedness in
accordance with the terms of this Agreement.

 

The Relevant
Company will not, and will not permit any Subsidiary Guarantor to, amend any of
the Security Documents in a manner adverse to the interests of the Lenders.

 

19.17      Advances to Subsidiaries

 

All advances
to Restricted Subsidiaries made by the Relevant Company or Nordic after the
date of this Agreement will be evidenced by intercompany notes or loan
agreements in favour of the Relevant Company or Nordic. Each intercompany note
will be issued and each intercompany loan agreement will be executed by the relevant
Restricted Subsidiary of the Relevant Company or Nordic in favour of the
Relevant Company to evidence advances by the Relevant Company or Nordic and
will provide that such advances will be payable upon demand.

 

19.18      Covenants: Overriding Exceptions

 

Notwithstanding
the limitations set out in this clause 19, and any similar restrictions in
another Finance Document, for the purposes of the Finance Documents, the
Relevant Company and any of its Subsidiaries:

 

(a)                                  shall
be permitted to take any action, incur any debt, grant any security, dispose of
any asset or claim or make any payment, transfer or transaction set out in the
Agreed Costs Schedule and/or the Structure Paper, including taking all
actions and steps necessary to complete and perform the same; and

 

(b)                                 shall
not be required to notify the Security Agent of any actions taken in respect of
Security Interests which does not affect the Security Interests held

 

86

 

by the
Security Agent on behalf of the Relevant Lenders and which has been notified to
the Senior Notes Trustee.

 

19.19      Release

 

Without
prejudice to the obligations of any Obligor under the Finance Documents, each
party to this Agreement hereby irrevocably releases, waive s and discharges each
of the other parties hereto and their Affiliates and every other company in the
Group, each of those parties’ Representatives and the Released Persons from any
and all claims (other than a claim for any loss caused by fraud or wilful
misconduct) in connection with their investment and/or shareholdings in the
Group or any securities or debt issued by the Group other than any claim for
failure to perform the obligations set out in any Finance Document, and that
any New Lender who becomes a party to this Agreement will do so subject to the
terms of this Clause.  Each Affiliate of
a party to this Agreement, each member of the Group and each of those persons’
Representatives and Released Persons shall be entitled to enforce this Clause
19.19 directly under the Contracts (Rights of Third Parties) Act 1999.

 

19.20      Additional documents

 

In respect of
a Utilisation of a Facility pursuant to this Agreement the relevant Borrower
shall provide the relevant documents to the Facility Agent at the time and in
the manner set out in Part II of Schedule 2 to this Agreement.

 

19.21      Additional Lender Covenant

 

(a)                                  Each
Lender (including any New Lender) undertakes to the Controlling Shareholders
(as defined in the Binding Restructuring Agreement) that, in the circumstances
specified in paragraph (b) below, it shall pay to Goldman Sachs 5/8 and to
Schoyen 3/8 of all Recovered Amounts (as defined below).

 

(b)                                 The
circumstances referred to in Paragraph (a) are:

 

(i)                                     that
Bus and/or Nordic has entered into an insolvency procedure;

 

(ii)                                  that
all or part of the amounts paid to the Controlling Shareholders or their
nominees by Bus and/or Nordic in connection with the Restructuring are required
to be repaid by any insolvency officer, court or other mandatory requirement;
and

 

(iii)                               that
any payment is made to any of the Lenders or to their order in connection with
such an insolvency procedure (a “Recovered
Amount”).

 

(c)                                  The
aggregate payment to be made by a Lender pursuant to paragraph (a)  shall
not in aggregate exceed the proportion borne by its aggregate Commitments to
the Total Commitments of Euro 1.6 million.

 

(d)                                 The
payment or payments to be made by each Lender pursuant to paragraph (a) 
shall be made promptly on payment of any Recovered Amount.

 

87

 

(e)                                  Each
Lender (including any New Lender) undertakes to notify the Facility Agent and
the Controlling Shareholders in writing as soon as a Recovered Amount is paid
to it or its order.

 

(f)                                    Each
Affiliate of a party to this Agreement, each member of the Group and each of
those persons’ Representatives and related Persons shall be entitled to enforce
this Clause 19.21 directly under the Contracts (Rights of Third Parties) Act
1999.

 

(g)                                 Each
of the Controlling Shareholders shall be entitled to enforce this Clause 19.21
directly against each Lender under the Contracts (Rights of Third Parties) Act
1999.

 

20           DEFAULT

 

20.1        Events of Default

 

“Event of Default”, wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(a)                                  default
for 30 days in the payment when due of interest pursuant to a Finance Document
whether or not such payment is prohibited or restricted by any applicable law
or regulation;

 

(b)                                 default
in payment when due of the principal pursuant to a Finance Document whether or
not such payment is prohibited or restricted by any applicable law or
regulation;

 

(c)                                  failure
by the Relevant Company or any of its Restricted Subsidiaries to comply with
the provisions of the Finance Documents (other than (a) and (b) above)
or otherwise take any action which is not permitted by or omit to take any
action which is required by the Finance Documents, and if such failure to
comply is capable of remedy, it is not remedied within 15 Business Days of the
Facility Agent serving notice to the Relevant Company, provided that the
invalidity failure to perfect or lack of priority of, (i) the second
ranking charge granted by Holding over its shares in Nordic and (ii) any
encumbrance, if such invalidity or failure to perfect or lack of priority
thereof arises as a result only of the existence of a negative pledge or
undertaking not to grant security rights, will not constitute an Event of
Default under this sub-paragraph (c);

 

(d)                                 default
under any mortgage,  or instrument under
which there may be issued or by which there may be secured or evidenced any
Financial Indebtedness for money borrowed by the Relevant Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Relevant
Company or any of its Restricted Subsidiaries) whether such Financial
Indebtedness or guarantee now exists, or is created after the date of this
Agreement (save for any default which may arise from a default (however
described), breach or contravention of (i) the Subordinated Notes
Indenture and documents related

 

88

 

thereto (ii) the
Senior Notes Indenture and documents related thereto (iii) any other
agreements or instruments in respect of any other arrangements which the
Relevant Company or any of its Restricted Subsidiaries may enter into or may
have entered into with its creditors under which a default (however described)
arises by reference, whether expressly or otherwise, to any of the terms of the
Subordinated Notes Indenture or the Senior Notes Indenture or (iv) any
other agreement or instrument which by virtue of its terms would, give rise to
a default (however described) under this Clause 20.1(d)), if that default:

 

(i)                                     is
caused by a failure to pay principal of or premium, if any, on such Financial
Indebtedness prior to the expiration of the grace period provided in such
Financial Indebtedness on the date of such default (a “Payment Default”); or

 

(ii)                                  results
in the acceleration of such Financial Indebtedness prior to its stated maturity;
and

 

in each case,
the principal amount of any such Financial Indebtedness, together with the
principal amount of any other such Financial Indebtedness the maturity of which
has been so accelerated, aggregates SEK 40,000,000 or more;

 

(e)                                  failure
by the Relevant Company or any of its Restricted Subsidiaries to pay judgments
aggregating in excess of SEK 40,000,000, which judgments are not paid,
discharged or stayed for a period of 60 days; and

 

(f)                                    any
default by the Relevant Company, in the performance of its obligations under
the Security Documents (after the lapse of any applicable grace periods and the
giving of any required notice) which materially adversely affects the
enforceability, validity, perfection or priority of the Security Agent’s
Security Interests as set out in the Security Documents or which adversely
affects the condition or value of the security, in either case taken as a
whole, in any material respect, disaffirmation by the Relevant Company of its
obligations under the Security Documents or the determination in a judicial
proceeding that the Security Documents are unenforceable or invalid against the
Relevant Company as to a material portion of the security for any reason,
provided that the invalidity, the failure to perfect, or the lack of priority
of (i) the second ranking charge (which shall be second ranking subject to
the release of the Existing Security) granted by Holding over its shares in
Nordic, and (ii) any encumbrance, if such invalidity or failure to perfect
or lack of priority thereof arises as a result only of the existence of a
negative pledge or undertaking not to grant security rights, will not
constitute an Event of Default under this subparagraph (f);

 

(g)                                 the
entry by a court having jurisdiction of:

 

(i)                                     a
decree or order for relief in respect of the Relevant Company or any Subsidiary
Guarantor in an involuntary case or proceeding under any applicable Insolvency
Law in connection with the insolvency of the Relevant Company or any Subsidiary
Guarantor, or

 

89

 

(ii)                                  a
decree or order adjudging the Relevant Company or any such Subsidiary Guarantor
or any Parent Company a bankrupt or insolvent under any applicable Insolvency
Law, or appointing a custodian, receiver, liquidator, assignee, trustee,
reconstructor, sequestrator or other similar official of the Relevant Company
or any such Subsidiary Guarantor of any substantial part of the property of the
Relevant Company or any such Subsidiary Guarantor or ordering the winding up or
liquidation of the affairs of the Relevant Company or any such Subsidiary
Guarantor, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 90
consecutive days

 

PROVIDED THAT
court proceedings in Sweden in relation to the Restructuring will not give rise
to an Event of Default under this subparagraph (g); or

 

(h)                                 the
commencement by the Relevant Company or any of its Subsidiary Guarantors of a
voluntary case or proceeding under any applicable Insolvency Law or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by the Relevant Company or any such Subsidiary Guarantor to the entry
of a decree or order for relief in respect of the Relevant Company or any such
Subsidiary Guarantor in an involuntary case or proceeding under any applicable
Insolvency Law or to the commencement of any bankruptcy or insolvency case or
proceeding against the Relevant Company or any such Subsidiary Guarantor or the
filing by the Relevant Company or any such Subsidiary Guarantor of a petition
or answer or consent seeking reorganization or relief under any applicable
Insolvency Law, or the consent by the Relevant Company or any such Subsidiary
Guarantor to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee,
reconstructor, sequestrator or similar official of the Relevant Company or any
such Subsidiary Guarantor or any Parent Company or of any substantial part of
the property of the Relevant Company or any such Subsidiary Guarantor, or an
assignment for the benefit of creditors generally, or the admission by the
Relevant Company or any such Subsidiary Guarantor in writing of its inability
to pay its debts generally as they become due provided that, the occurrence of
one of more of the events described in this clause in connection with the
Restructuring or the Swedish moratorium proceedings shall be deemed not to be
an Event of Default.

 

20.2        Acceleration

 

If an Event of
Default is continuing, the Facility Agent may, and shall if so directed by the
Majority Lenders, by notice to the Relevant Company do all or any of the
following in addition and without prejudice to any other rights or remedies
which it or any other Finance Party may have under this Agreement or any of the
other Finance Documents:

 

(a)           declare that an Event of Default has
occurred;

 

(b)           cancel some or all of the Total
Commitments whereupon they shall immediately be cancelled;

 

90

 

(c)                                  declare
that all or part of the Advances, together with accrued interest, and all other
amounts accrued or outstanding under the Finance Documents be:

 

(i)                                     immediately
due and payable, whereupon they shall become immediately due and payable;

 

(ii)                                  payable
on demand by the Facility Agent (and if any such demand is subsequently made
those amounts, together with accrued interest and all other amounts accrued
under this Agreement, shall be immediately due and payable); or

 

(d)                                 exercise,
or direct the Security Agent to exercise (subject to the provisions of Clause
23), all or any of its or as the case may be, the Security Agent’s rights,
remedies, powers or discretions under any of the Security Documents.

 

91

 

SECTION 8

CHANGES
TO PARTIES

 

21                                  CHANGES TO THE LENDERS

 

21.1        Assignments and transfers by the Lenders

 

Subject to
this Clause 21 a Lender (the “Existing Lender”)
may at any time:

 

(a)           assign any of its rights; or

 

(b)           transfer (including by way of
novation) any of its rights and obligations,

 

under this
Agreement to another bank or financial institution or to a trust, fund or other
entity which is regularly engaged in or established (in whole or in part) for
the purpose of making, purchasing or investing in loans, securities or other
financial assets (the “New Lender”)
provided that a transfer of part of a Lender’s Commitment must be in a minimum
amount of at least EUR 2,000,000 or, if a Lender’s Commitment with respect to a
Facility is less than that minimum amount, such lesser amount as is equal to
that Lender’s Commitment with respect to that Facility.

 

21.2        Conditions of assignment or transfer or
change in Facility Office

 

(a)                                  The
Lenders must consult with the relevant Borrower in relation to any assignment
or transfer of rights and obligations under the Finance Documents.

 

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

 

(i)                                     the
procedure set out in Clause 21.5 (Procedure
for transfer) is complied with;

 

(ii)                                  the
Facility Agent receives written confirmation from the New Lender (in form and
substance satisfactory to the Facility Agent) that the New Lender will assume
the same obligations to the other Finance Parties as it would have been under
if it was an Original Lender.

 

(c)                                  Notwithstanding
anything in this Clause 21, prior to the Utilisation of a Facility and provided
no Event of Default has occurred or is continuing (or, if an Event of Default
has occurred, provided it has been cured to the satisfaction of the Majority
Lenders (acting reasonably)), no Lender may transfer, assign or novate in
favour of a New Lender any part of its Commitment in respect of that Facility
without the prior written consent of the party which is to be Borrower in
respect of that Facility.

 

21.3        Assignment or transfer fee

 

Unless the
Facility Agent otherwise agrees, the New Lender shall, on or before the date
upon which an assignment or transfer takes effect, pay to the Facility Agent
(for its own account) a fee of EUR 3,500.

 

 

21.4        Limitation of responsibility of Existing
Lenders

 

(a)                                  Unless
expressly agreed to the contrary in writing, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:

 

(i)                                     the
legality, validity, effectiveness, adequacy or enforceability of the Finance
Documents or any other documents or the value of any assets subject to the
Security Documents;

 

(ii)                                  the
financial condition of any Obligor;

 

(iii)                               the
performance and observance by any Obligor of its obligations under the Finance
Documents or any other documents; or

 

(iv)                              the
accuracy of any statements (whether written or oral) made in or in connection
with any Finance Document or any other document,

 

and any
representations or warranties implied by law are excluded.

 

(b)           Each New Lender confirms to the
Existing Lender and the other Finance Parties that it:

 

(i)                                     has
made (and shall continue to make) its own independent investigation and
assessment of the financial condition and affairs of each Obligor 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 Lender
in connection with any Finance Document;

 

(ii)                                  will
continue to make its own independent appraisal of the creditworthiness of each
Obligor and its related entities whilst any amount is or may be outstanding
under the Finance Documents or any Commitment is in force; and

 

(iii)                               is
a bank or financial institution, or a trust fund or other entity which is
regularly engaged in or established (in whole or in part) for the purpose of
making, purchasing or investing in loan securities or other financial asset,
and whose ordinary business includes participation in syndicated facilities of
this type.

 

(c)                                  Nothing
in any Finance Document obliges an Existing Lender to:

 

(i)                                     accept
a re-transfer from a New Lender of any of the rights and obligations assigned
or transferred under this Clause 21; or

 

(ii)                                  support
any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under the Finance Documents
or otherwise.

 

93

 

21.5        Procedure for transfer

 

(a)                                  Subject
to the conditions set out in Clause 21.2 (Conditions
of assignment or transfer or change in Facility Office) a transfer
is effected in accordance with paragraph (b) below when the Facility Agent
executes an otherwise duly completed Transfer Certificate delivered to it by
the Existing Lender and the New Lender. 
The Facility Agent shall, subject to paragraph (b) below as soon as
reasonably practicable after receipt by it of a duly completed Transfer
Certificate appearing on its face to comply with the terms of this Agreement
and delivered in accordance with the terms of this Agreement, execute that
Transfer Certificate.

 

(b)                                 The
Facility Agent shall only be obliged to execute a Transfer Certificate
delivered to it by the Existing Lender and the New Lender upon its satisfaction
with the result of “know your client” or other checks relating to the identity
of any person that it is required to carry out in relation to the transfer to
such New Lender.

 

(c)           On the Transfer Date:

 

(i)                                     to
the extent that in the Transfer Certificate the Existing Lender seeks to
transfer by novation its rights and obligations under the Finance Documents:

 

(A)                              the
relevant Obligor and the Existing Lender shall be released from further
obligations towards one another under the Finance Documents and their
respective rights against one another under the Finance Documents shall be
cancelled (being the “Discharged Rights and
Obligations”);

 

(B)                                the
relevant Obligor and the New Lender shall assume obligations towards one
another and/or acquire rights against one another which differ from the
Discharged Rights and Obligations only insofar as that Obligor and the New
Lender have assumed and/or acquired the same in place of that Obligor and the
Existing Lender;

 

(ii)                                  the
Facility Agent, the Security Agent, the New Lender and other Lenders shall
acquire the same rights and assume the same obligations between themselves as
they would have acquired and assumed had the New Lender been an Original Lender
with the rights and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Facility Agent, the Security Agent, the
Existing Lender and the other Lenders shall each be released from further
obligations to each other under the Finance Documents; and

 

(iii)                               the
New Lender shall become a Party as a “Lender”.

 

(d)                                 Each
Party (other than the Existing Lender and the New Lender) irrevocably
authorises the Facility Agent to execute any duly completed Transfer
Certificate on its behalf.

 

94

 

21.6        Sub-participations by Lenders

 

Any Lender
may, without the consent of any Obligor, enter into with any person:

 

(a)                                  sub-participation
agreements relating to this Agreement; and/or

 

(b)                                 any
other transactions under which payments are to be made by reference to this
Agreement or any Obligor.

 

Any Lender
may, without the consent of the Relevant Company or any Obligor, at any time
charge or create a Security Interest in all or any portion of its rights under
any Finance Document to secure obligations of such Lender, including without limitation
(i) any charge or creation of a Security Interest to secure obligations to
a Federal Reserve Bank and (ii) in the case of any Lender that is a fund,
any charge or creation of a security interest of all or any portion of such
Lender’s rights under any Finance Document to any holders of obligations owed,
or securities issued, by such Lender as security for such obligations or
securities, or to any trustee for, or any other representative of, such
holders; provided that no such charge or creation of a security interest nor
the enforcement thereof shall:

 

(A)                              release
a Lender from any of its obligations hereunder or substitute any such chargee
or holder of the benefit of such security interest for such Lender as a party
hereto; or

 

(B)                                require
any payments to be made by any Obligor other than as required by the relevant
Finance Document.  A copy of any notice
of charge or creation of Security Interest as envisaged in this paragraph shall
be delivered to the Facility Agent and the Facility Agent shall not be obliged
to take any action in regard to such notice unless instructed to do so by the
relevant Lender which has given such security.

 

21.7        Disclosure of information

 

(a)                                  Each
Finance Party shall keep confidential any information supplied to it by or on
behalf of any Obligor in connection with the Finance Documents.  However, a Finance Party is entitled to
disclose information:

 

(i)                                     which
is or becomes publicly available, other than as a result of a breach by that
Finance Party of this Clause ;

 

(ii)                                  if
required or, in the Finance Party’s absolute discretion, desirable in
connection with any legal or arbitration proceedings;

 

(iii)                               if
required to do so under any law or regulation;

 

(iv)                              to
a governmental, banking, taxation or other regulatory authority;

 

(v)                                 to
its professional advisers;

 

(vi)                              to
the extent allowed under paragraph (b) below; or

 

95

 

(vii)                           with
the agreement of the Relevant Company or the relevant Obligor.

 

(b)                                 A
Finance Party may disclose to an Affiliate or any person with whom it may
enter, or has entered into, any kind of transfer, participation or other
agreement (including without limitation a transaction under which payments are
to be made by reference to any of the Finance Documents in relation to this
Agreement (a “participant”):

 

(i)                                     a
copy of any Finance Document; and

 

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

 

However,
before a participant may receive any confidential information, it shall agree
with the relevant Finance Party to keep that information confidential on the
terms of paragraph (a) above.

 

(c)                                  This
Clause supersedes any previous confidentiality undertaking given by a Finance
Party in connection with this Agreement prior to it becoming a Party.

 

22           CHANGES
TO THE OBLIGORS

 

22.1        Assignment and transfers by Obligors

 

No Obligor may
assign any of its rights or transfer any of its rights or obligations under the
Finance Documents.

 

96

 

SECTION 10

THE FINANCE PARTIES

 

23                                ROLE
OF THE AGENT 

 

23.1                        Appointment
of the Agents

 

(a)                                Each
Finance Party (other than each Agent) appoints each Agent to act as its agent
under and in connection with the Finance Documents.

 

(b)                               Each
other Finance Party (other than each Agent) irrevocably authorises each Agent
to:

 

(i)                                   perform
its duties and exercise the rights, powers, authorities and discretions
specifically given to it under or in connection with the Finance Documents
together with any other incidental rights, powers, authorities and discretions;
and

 

(ii)                                  execute
each Finance Document expressed to be executed by the relevant Agent on its
behalf.

 

(c)                                Each
Finance Party (other than the relevant Agent) confirms that the Agent has
authority to accept on its behalf the terms of any reliance letter or
engagement letter relating to due diligence reports or certificates required
under this Agreement provided by any third party and to bind it in the respect
of such reports or letter and to sign such letters on its behalf and further
confirming that it accepts the terms and qualifications set out in such letter.

 

23.2                        Duties of
the Agent

 

(a)                                Each
Agent shall promptly forward to a Party the original or a copy of any document
which is delivered to such Agent for that Party by any other Party.

 

(b)                               Except
where a Finance Document specifically provides otherwise and as agreed by the
relevant Agent, each Agent is not obliged to review or check the adequacy,
accuracy or completeness of any document it forwards to another Party.

 

(c)                                If
an Agent receives notice from a Party referring to this Agreement, describing a
Default and stating that the circumstance described is a Default, it shall
promptly notify the other Finance Parties. 
Neither Agent is obliged to monitor or enquire whether a Default has
occurred.

 

(d)                               If
an Agent is aware of the non-payment of any principal, interest, commitment fee
or other fee payable to a Finance Party (other than such Agent) under this
Agreement it shall promptly notify the other Finance Parties.

 

(e)                                Each
Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature.

 

 

23.3                        No
fiduciary duties

 

(a)                                Nothing
in this Agreement constitutes any Finance Party as a trustee or fiduciary of
any person.

 

(b)                               No
Agent need hold in trust any moneys paid to it for a Party or be liable to
account for any interest on those moneys, save as expressly provided for in the
Finance Documents and as agreed by the relevant Agent.

 

(c)                                Neither
Agent shall be bound to account to any Lender for any sum or the profit element
of any sum received by it for its own account.

 

23.4                        Rights and
discretions of the Agents

 

(a)                                Each
Agent may rely on:

 

(i)                                   any
representation, notice or document believed by it to be genuine, correct and
appropriately authorised or signed; and

 

(ii)                                  any
statement made by a director, authorised signatory or employee of any person
regarding any matters which may reasonably be assumed to be within his
knowledge or within his power to verify.

 

(b)                               Each
Agent may assume (unless it has received written notice to the contrary,
referring specifically to the relevant provision under the Finance Documents,
in its capacity as agent for the Lenders) that:

 

(i)                                   no
Default has occurred (unless it has actual knowledge of a Default arising under
Clause 20.1 (Events of Default);

 

(ii)                                  any
right, power, authority or discretion vested in any Party or the Majority
Lenders has not been exercised;

 

(iii)                               any
notice or request made by the Relevant Company (including a Utilisation Request
or Selection Notice) is made on behalf of and with the consent and knowledge of
all the Obligor.

 

(c)                                Each
Agent may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other professional advisors, including without
limitation those representing another Party.

 

(d)                               Each
Agent may act in relation to the Finance Documents through its personnel and
agents.

 

(e)                                Each
Agent may disclose to any other Party any information it reasonably believes it
has received as agent under this Agreement.

 

(f)                                  Notwithstanding
any other provision of any Finance Document to the contrary, neither Agent is
obliged to do or omit to do anything if it would or might in its reasonable
opinion constitute a breach of any law or regulation or a breach of a fiduciary
duty or duty of confidentiality.

 

98

 

23.5                        Majority
Lenders ’ and Facility Agent’s instructions

 

(a)                                Unless
a contrary indication appears in a Finance Document, and subject to the
provisions of this Clause 23, the Facility Agent shall exercise any right,
power, authority or discretion vested in it as Facility Agent in accordance
with any instructions given to it by the Majority Lenders (or, if so instructed
by the Majority Lenders, refrain from exercising any right, power, authority or
discretion vested in it as Facility Agent) and the Security Agent shall
exercise any right, power, authority or discretion vested in it as Security
Agent in accordance with any instructions given to it by the Facility
Agent.  No Agent shall be liable for any
act (or omission) if it acts (or refrains from taking any action) in accordance
with an instruction of the Majority Lenders (in the case of the Facility Agent)
or of the Facility Agent (in the case of the Security Agent).

 

(b)                               Unless
a contrary indication appears in a Finance Document, any instructions given by
the Majority Lenders will be binding on all the Finance Parties.

 

(c)                                Each
Agent may refrain from acting in accordance with the instructions of the
Majority Lenders, the Lenders or (in the case of the Security Agent) the
Facility Agent, until it has received such security as it may require for any
cost, loss or liability (together with any associated VAT) which it may incur in
complying with the instructions.  In
addition each Agent may refrain from doing anything (including disclosing any
information) 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.

 

(d)                               In
the absence of instructions from the Majority Lenders, the Lenders, or the
Facility Agent, as appropriate, each Agent may act (or refrain from taking
action) as it considers to be in the best interest of the Lenders (taken as a
whole).

 

(e)                                Each
Agent is not authorised to act on behalf of a Lender (without first obtaining
that Lender’s consent) in any legal or arbitration proceedings relating to any
Finance Document.

 

(f)                                  Other
than the provisions of Clause 19.18 (Overriding Exceptions),
the Facility Agent, in the event of an inconsistency between the terms of this
Agreement (excluding Schedule 6) and the Structure Paper, shall be required to
have reference solely to the terms of this Agreement (excluding Schedule 6).

 

23.6                        Responsibility

 

No Agent is
responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or
document entered into, made or executed in anticipation of or in connection
with any Finance Document. No Agent is responsible for the adequacy, accuracy
and/or completeness of any information (whether oral or written) supplied by
the Agent, an Obligor or any other person given in or in connection with any
Finance Document.

 

99

 

23.7                        Exclusion
of liability

 

(a)                                Without
limiting paragraph (b) below, neither Agent will be liable for any action taken
by it under or in connection with any Finance Document, unless directly caused
by its gross negligence or wilful misconduct.

 

(b)                               No
Finance Party (other than the relevant Agent) may take any proceedings against
any officer, employee or agent of an Agent in respect of any claim it might
have against the Agent or in respect of any act or omission of any kind by that
officer, employee or agent in relation to any Finance Document.  Any officer, employee or agent of an Agent may
rely on, enjoy the benefit of and enforce this Clause subject to Clause 1.3 (Third Party Rights) and the provisions of the Contracts
(Rights of Third Parties Act) 1999.

 

(c)                                No
Agent will be liable for any delay (or any related consequences) in crediting
an account with an amount required under the Finance Documents to be paid by
such Agent if such Agent has taken all necessary steps as soon as reasonably
practicable to comply with the regulations or operating procedures of any
recognised clearing or settlement system used by such Agent for that purpose.

 

(d)                               Nothing
in this Agreement shall oblige an Agent to carry out any “know your client” or
other checks in relation to the identity of any person on behalf of any Lender
and each Lender confirms to the Agents that it is solely responsible for any
such checks it is required to carry out and that it may not rely on any
statement in relation to such checks made by any other person.

 

23.8                      Lenders’
indemnity to the Agents

 

Without
limiting the liability of any Obligor under the Finance Documents, each Lender
shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately
prior to their reduction to zero) indemnify the Agents, within three Business
Days of demand, against any cost, loss or liability incurred by either of the
Agents (otherwise than by reason of such Agent’s gross negligence or wilful
misconduct) in acting as Agent under the Finance Documents (unless such Agent
has been reimbursed by an Obligor pursuant to a Finance Document).  For the avoidance of doubt, where either
Agent makes a demand against a Lender pursuant to this Clause 23.8, that Lender
shall thereafter remain liable under that demand for the indemnity undertaken
in this Clause 23.8, notwithstanding any subsequent transfer of that Lender’s
Commitment, or part thereof, pursuant to Clause 21.1 (Assignments and Transfers by the Lenders).

 

23.9                      Resignation
of an Agent

 

(a)                                Each
Agent may resign and appoint one of its Affiliates as successor by giving
notice to the Lenders and the Relevant Company.

 

(b)                               Alternatively
each Agent may resign by giving notice to the Lenders and the Relevant Company,
in which case the Majority Lenders may appoint a successor Agent.

 

100

 

(c)                                If
the Majority Lenders have not appointed a successor Agent in accordance with
paragraph (b) above within thirty (30) days after notice of resignation was
given, the Agent (after consultation with the Relevant Company) may appoint a
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 Agent
under the Finance Documents.

 

(e)                                The
resignation of an Agent and the appointment of any successor Agent will both
become effective only when the successor Agent notifies all the Parties that it
accepts its appointment and, in the case of the Security Agent, the Facility
Agent confirms that it is satisfied that the Security Documents (and any
related documentation) have been transferred to or into (and where required
registered in) the name of the proposed successor Security Agent.  On the conditions to appoint being satisfied,
the successor Agent will succeed to the position of the  Agent and the term “Facility Agent “ or
“Security Agent” as applicable will mean the successor Agent.

 

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

 

(g)                               The
Majority Lenders or any Borrower may, by notice to an Agent, require it to
resign under paragraph (b) above.

 

(h)                               The
Obligor shall, at their own cost, take such action and execute such documents
as is required by the Security Agent so that the Security Documents provide for
effective and perfected security in favour of any successor Security Agent.

 

23.10               Security Agent

 

(a)                                The
Security Agent shall hold the security constituted by the Security Documents to
the extent required by any applicable local law as agent for the Finance
Parties in accordance with the Finance Documents.

 

(b)                               The
Security Agent shall not be liable for any failure, omission, or defect in
registering, protecting or perfecting the security constituted by any Security
Document or any security created thereby.

 

(c)                                The
Security Agent has no obligation to enquire into or check the title which any
Obligor may have to any property over which security is intended to be created
by any Security Documents.

 

(d)                               The
Security Agent is not under any obligation to hold any title deeds, Security
Documents, share certificates or any other documents in connection with the
property charged by any Security Document or any other such

 

101

 

security in
its own possession or to take any steps to protect or preserve the same.  The Security Agent may permit the relevant
Obligor, any bank providing safe custody services or any professional adviser
of the Security Agent to retain all such title deeds, Security Documents, share
certificates and other documents in its possession.

 

(e)                                All
amounts received by the Security Agent under the Finance Documents may be:

 

(i)                                   invested
in any investment for the time being authorised by English law for the investment
by trustees of trust money or in any other investments which may be selected by
the Security Agent with the consent of the Majority Lenders; or

 

(ii)                                  placed
on deposit at such bank or institution (including any Agent or Lender) and upon
such terms as the Security Agent may think fit. 
Any and all such monies and all interest thereon shall be paid over to
the Facility Agent forthwith upon demand by the Facility Agent.

 

(f)                                  Each
Finance Party other than the Facility Agent confirms its approval of the
Security Documents and authorises and directs the Security Agent (by itself or
by such person(s) as it may nominate) to execute and enforce the same as
trustee (or agent) or as otherwise provided (and whether or not expressly in
the Lenders’ names) on its behalf.

 

(g)                               The
Security Agent shall not be required to direct that any amounts be paid
directly to it with respect to or under any asset subject to the Security
Interests, unless the Security Agent so agrees in its discretion.

 

(h)                               The
Security Agent shall not be under any obligation to insure any part of the
property subject to the Security Interests, to require any other person to
maintain any insurance.  The Security
Agent shall not be responsible for any loss which may be suffered by any person
as a result of the lack of or inadequacy of any insurance.

 

(i)                                   The
Security Agent shall not accept responsibility or be liable for any shortfall
which arises on the enforcement of security and shall not have any
responsibility as regards any deficiency or additional payment which might
arise because the Security Agent is subject to any tax in respect of any part
of the security or income therefrom or proceeds thereof.

 

(j)                                   The
Security Agent shall not accept responsibility or be liable for any decline in
the value or a loss realised upon sale or other disposition made pursuant to
any of the Finance Documents of all or any part of the property subject to the
security.

 

(k)                                The
Security Agent shall not be liable to account to any Finance Party or any other
person for anything except sums actually received by the Security Agent and any
sums so received by the Security Agent shall, subject to the Security Agent’s
rights to indemnity and other rights under this Agreement, be paid to the
Facility Agent.

 

102

 

23.11                 Confidentiality

 

(a)                                In
acting as agent for the Finance Parties, each Agent shall be regarded as acting
through its agency division which shall be treated as a separate entity from
any other of its divisions or departments.

 

(b)                               If
information is received by another division or department of any Agent, it may
be treated as confidential to that division or department and the Agent shall
not be deemed to have notice of it.

 

(c)                                Each
Obligor irrevocably authorises each Agent to disclose to the other Finance
Parties any information which, in its opinion is received by it in its capacity
as an Agent.

 

23.12                 Relationship with
the Lenders

 

(a)                                The
Facility Agent may treat each Lender as a Lender, entitled to payments under
this Agreement and acting through its Facility Office unless it has received
not less than five Business Days prior notice from that Lender to the contrary
in accordance with the terms of this Agreement.

 

(b)                               Each
Lender shall supply the Facility Agent with any information required by the
Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost formulae).

 

23.13                 Credit appraisal
by the Lenders

 

Without
affecting the responsibility of any Obligor for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms to
the Agents that it has been, and will continue to be, solely responsible for
making its own independent appraisal and investigation of all risks arising under
or in connection with any Finance Document including but not limited to:

 

(a)                                the
financial condition, status and nature of each member of the Group;

 

(b)                               the
legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;

 

(c)                                whether
that Lender has recourse, and the nature and extent of that recourse, against
any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any
other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; and

 

In addition,
each Lender confirms that it has not relied exclusively on any information
provided to it by any Agent in connection with any Finance Document.

 

103

 

23.14               Deduction from
amounts payable by the Agent

 

If any Party
owes an amount to the Agent under the Finance Documents the Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from
any payment to that Party which the Agent would otherwise be obliged to make
under the Finance Documents and apply the amount deducted in or towards
satisfaction of the amount owed.  For the
purposes of the Finance Documents that Party shall be regarded as having
received any amount so deducted.

 

23.15               Notice Period

 

Where this
Agreement specifies a minimum period of notice to be given to an Agent, the
Agent may, at its discretion, accept a shorter notice period.

 

23.16               Costs and Expenses

 

Any amount
payable to an Agent under Clause 14.3 (Indemnity
to the Agents), Clause 16 (Costs
and expenses) and Clause 23.8 (Lenders’
indemnity to the Agents) shall include the reasonable cost of
utilising the Agent’s management time or other resources and will be calculated
on the basis of such reasonable daily or hourly rates as the Agent may notify
to the Relevant Company and the Lenders, and is in addition to any fee paid or
payable to the Agents under Clause 11 (Fees).

 

24                                SHARING
AMONG THE FINANCE PARTIES  

 

24.1                        Payments
to Finance Parties

 

If a Finance
Party (a “Recovering Finance Party”)
receives or recovers any amount from an Obligor other than in accordance with
Clause 25 (Payment mechanics) and
applies that amount to a payment due under the Finance Documents then:

 

(a)                                the
Recovering Finance Party shall, within three (3) Business Days, notify details
of the receipt or recovery, to the Facility Agent;

 

(b)                               the
Facility Agent shall determine whether the receipt or recovery is in excess of
the amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Facility Agent and distributed in
accordance with Clause 25 (Payment mechanics),
without taking account of any Tax which would be imposed on the Facility Agent
in relation to the receipt, recovery or distribution; and

 

(c)                                the
Recovering Finance Party shall, within three (3) Business Days of demand by the
Facility Agent, pay to the Facility Agent an amount (the “Sharing
Payment”) equal to such receipt or recovery less any amount which
the Facility Agent determines may be retained by the Recovering Finance Party
as its share of any payment to be made, in accordance with Clause 25.5 (Partial payments).

 

104

 

24.2                      Redistribution
of payments

 

The Facility
Agent shall treat the Sharing Payment as if it had been paid by the relevant
Obligor and distribute it between the Finance Parties (other than the
Recovering Finance Party) in accordance with Clause 25.5 (Partial payments).

 

24.3                      Recovering
Finance Party’s rights

 

(a)                                On
a distribution by the Facility Agent under Clause 24.2 (Redistribution
of payments), the Recovering Finance Party will be subrogated to the
rights of the Finance Parties which have shared in the redistribution.

 

(b)                               If
and to the extent that the Recovering Finance Party is not able to rely on its
rights under paragraph (a) above, the relevant Obligor shall be liable to the
Recovering Finance Party for a debt equal to the Sharing Payment which is
immediately due and payable.

 

24.4                      Reversal of
redistribution

 

If any part of
the Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

 

(a)                                each
Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 24.2 (Redistribution of payments)
shall, upon request of the Facility Agent, pay to the Facility Agent for
account of that Recovering Finance Party an amount equal to the appropriate
part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance Party for its proportion of any
interest on the Sharing Payment which that Recovering Finance Party is required
to pay); and

 

(b)                                 that
Recovering Finance Party’s rights of subrogation in respect of any reimbursement
shall be cancelled and the relevant Obligor will be liable to the reimbursing
Finance Party for the amount so reimbursed.

 

24.5                        Exceptions

 

Notwithstanding
any other term of this Clause 24, a Recovering Finance Party need not make a
Sharing Payment to the extent that:

 

(a)                                it
would not, after the payment, have a valid claim against the relevant Obligor
in the amount of the Sharing Payment; or

 

(b)                               it
would be sharing with another Finance Party any amount which the Recovering
Finance Party has received or recovered as a result of legal or arbitration
proceedings, where:

 

(i)                                   the
Recovering Finance Party notified the Facility Agent of those proceedings; and

 

(ii)                                  the
other Finance Party had an opportunity to participate in those proceedings but
did not do so or did not take separate legal or

 

105

 

arbitration
proceedings as soon as reasonably practicable after receiving notice of them.

 

106

 

SECTION
11

ADMINISTRATION

 

25                                PAYMENT
MECHANICS 

 

25.1
                     Payments
to the Facility Agents

 

(a)                                On
each date on which an Obligor or a Lender is required to make a payment under a
Finance Document, that Obligor or Lender shall make the same available to the
Facility Agent (unless a contrary indication appears in a Finance Document) for
value on the due date at the time and in such funds specified by the Facility
Agent as being customary at the time for settlement of transactions in the
relevant currency in the place of payment.

 

(b)                               Payment
shall be made to such account in the principal financial centre of the country
of that currency (or, in relation to Euro, in a principal financial centre in a
Participating Member State or London) with such bank as such Facility Agent
specifies.

 

(c)                                Each
party to this Agreement acknowledges that any payment received by the Facility
Agent after 3pm (Luxembourg time) on any Business Day shall not be processed
until the following Business Day. 
Notwithstanding the provisions of this paragraph (c), receipt of payment
from the Borrower by the Facility Agent shall at the time and to the extent of
such receipt, discharge the Borrower’s obligations to make such payment under
this Agreement.

 

25.2                        Distributions
by the Agents

 

Each payment received
by an Agent under the Finance Documents for another Party shall, subject to
Clause 25.3 (Distributions to an Obligor),
Clause 25.4 (Clawback), and
Clause 23.14 (Deduction from amounts payable
by the Agent) and less any amounts deductible in respect of any
unpaid fees, costs and expenses of the Agents under the Finance Documents, be
made available by such Agent as soon as practicable after receipt to the Party
entitled to receive payment in accordance with this Agreement (in the case of a
Lender, for the account of its Facility Office), to such account as that Party
may notify to such Agent for this purpose by not less than five Business Days’
notice with a bank in the principal financial centre of the country of that
currency (or, in relation to Euro, in the principal financial centre of a
Participating Member State or London).

 

25.3                      Distributions
to an Obligor

 

An Agent may
(with the consent of the Obligor or in accordance with Clause 26 (Set-off)) apply any amount received by it
for that Obligor in or towards payment of any amount due from that Obligor
under the Finance Documents or in or towards purchase of any amount of any
currency to be so applied.

 

 

25.4                      Clawback

 

(a)                                Where
a sum is to be paid to an Agent under the Finance Documents for another Party,
the Agent is not obliged to pay that sum to that other Party (or to enter into
or perform any related exchange contract) until it has been able to establish
to its satisfaction that it has actually received that sum.

 

(b)                               If
an Agent pays an amount to another Party and it proves to be the case that the
Agent had not actually received that amount, then the Party to whom that amount
(or the proceeds of any related exchange contract) was paid by the Agent shall
on demand refund the same to the Agent together with interest on that amount
from the date of payment to the date of receipt by the Agent, calculated by the
Agent to reflect its cost of funds,

 

25.5                      Partial
payments

 

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

 

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

 

(ii)                                  secondly,
in or towards payment pro rata of any accrued interest, fee, commission or
indemnity due but unpaid under this Agreement;

 

(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
Facility Agent shall, if so directed by the Majority Lenders, vary the order set
out in paragraphs (a)(ii) to (iv) above.

 

(c)                                Paragraphs
(a) and (b) above will override any appropriation made by an Obligor.

 

25.6                      No set-off by
Obligor

 

All payments
to be made by an Obligor under the Finance Documents shall be calculated and be
made without (and free and clear of any deduction for) set-off or counterclaim.

 

25.7                      Business Days

 

(a)                                Any
payment under the Finance Documents which is due to be made on a day that is
not a Business Day shall be made on the next Business Day in the same calendar
month (if there is one) or the preceding Business Day (if there is not).

 

108

 

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

 

25.8                      Currency of
account

 

(a)                                Subject
to paragraphs (b) to (f) below, the Euro is the currency of account and payment
for any sum due from an Obligor under any Finance Document.

 

(b)                               A
payment or repayment of an Advance or Unpaid Sum or a part of an Advance or
Unpaid Sum shall be made in the currency in which that Advance or Unpaid Sum is
denominated on its due date.

 

(c)                                Each
payment of interest shall be made in the currency in which the sum in respect
of which the interest is payable was denominated when that interest accrued.

 

(d)                               Each
payment in respect of costs, expenses, Taxes and the like shall be made in the
currency in which the costs, expenses or Taxes are incurred.

 

(e)                                Any
amount (other than of principal and/or interest) calculated by reference to or
payable in respect of any other amount shall be payable in the currency in
which that other amount is denominated at the time of payment.

 

25.9                      Timing of payments

 

If a Finance
Document does not provide for when a particular payment is due, that payment
will be due within three Business Days of demand the Finance Parties.

 

25.10               Change of currency

 

(a)                                Unless
otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognised by the central bank of any country as the lawful
currency of that country, then:

 

(i)                                   any
reference in the Finance Documents to, and any obligations arising under the
Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the
Facility Agent (after consultation with the Relevant Company; and

 

(ii)                                  any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the
Facility Agent (acting reasonably).

 

(b)                               If
a change in any currency of a country occurs, this Agreement will, to the
extent the Facility Agent (acting reasonably and after consultation with the
Relevant Company) specifies to be necessary, be amended to comply with any
generally accepted conventions and market practice in the Relevant Interbank
Market and otherwise to reflect the change in currency.

 

109

 

26                                  SET-OFF

 

A Finance
Party may set off any matured obligation owed to it by an Obligor under the
Finance Documents (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not Matured) owed by that Finance Party to
that Obligor, regardless of the place of payment, booking branch or currency of
either obligation, and shall provide notice thereof to the Relevant
Company.  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
setoff.

 

27                                  NOTICES

 

27.1                      Communications
in writing

 

Any communication
to be made under or in connection with the Finance Documents shall be made in
writing and, unless otherwise stated, may be made by fax or letter.

 

27.2                      Addresses

 

The address
and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with the Finance Documents is:

 

(a)                                in
the case of the Relevant Company, that identified with its name below;

 

(b)                               in
the case of each Lender or the Relevant Company, that notified in writing to
the Facility Agent on or prior to the date on which it becomes a Party; and

 

(c)                                in
the case of the Facility Agent, that identified with its name below,

 

or any
substitute address, fax number or department or officer as the Party may notify
to the Facility Agent (or the Facility Agent may notify to the other Parties,
if a change is made by the Facility Agent) by not less than five Business Days’
notice.

 

27.3                      Delivery

 

(a)                                Any
communication or document made or delivered by one person to another under or
in connection with the Finance Documents will only be effective:

 

(i)                                   if
by way of fax, when received in legible form; or

 

(ii)                                if
by way of letter, when it has been left at the relevant address or five (5)
Business Days after being deposited in the post postage prepaid in a correctly
addressed envelope;

 

and, if a
particular department or officer is specified as part of its address details
provided under Clause 27.2 (Addresses),
if addressed to that department or officer.

 

110

 

(b)                               A
communication given under paragraph (a) above but received on a nonwaiting 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.

 

(c)                                Any
communication or document to be made or delivered to an Agent will be effective
only when actually received by the Agent and then only if it is expressly
marked for the attention of the department or officer identified with the Agent
‘s signature below (or any substitute department or officer as the Agent shall
specify for this purpose).

 

(d)                               All
notices from or to an Obligor shall be sent through the Facility Agent.

 

27.4                      Obligor

 

(a)                                All
formal communications under the Finance Documents to or from an Obligor shall
be sent through the Facility Agent.

 

(b)                               Any
communication given to the Relevant Company in connection with a Finance
Document will be deemed to have been given also to the other Obligor.

 

(c)                                Each
Agent may assume that any communication made by the Relevant Company is made
with the consent of each Obligor.

 

27.5                      Notification
of address and fax number

 

Promptly upon
receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 27.2 (Addresses)
or changing its own address or fax number, the Facility Agent shall notify the
other Parties.

 

27.6                      Electronic
communication

 

(a)                                Any
communication to be made between an Agent and a Lender under or in connection
with the Finance Documents may be made by electronic mail or other electronic
means, if the Facility Agent and the relevant Lender:

 

(i)                                   agree
that, unless and until notified to the contrary, this is to be an accepted form
of communication;

 

(ii)                                notify
each other in writing of their electronic mail address and/or any other
information required to enable the sending and receipt of information by that
means; and

 

(iii)                             notify
each other of any change to their address or any other such information supplied
by them.

 

(b)                               Any
electronic communication made between an Agent and a Lender will be effective
only when actually received in readable form and in the case of any electronic
communication made by a Lender to an Agent only if it is addressed in such a
manner as an Agent shall specify for this purpose.

 

111

 

27.7                      English
language

 

(a)                                Any
notice given under or in connection with any Finance Document must be in
English.

 

(b)                               All
other documents provided under or in connection with any Finance Document must
be:

 

(i)                                   in
English; or

 

(ii)                                if
not in English, and if so required by the Facility Agent, accompanied by a
certified English translation and, in this case, the English translation will
prevail unless the document is a constitutional, statutory or other official
document.

 

27.8                      Use of
Websites

 

(a)                                The
Relevant Company may satisfy its obligation under this Agreement to deliver any
information in relation to those Lenders ( the “Website Lenders ”) who accept this method of communication by
posting this information onto an electronic website designated by the Relevant
Company and the Facility Agent (the “Designated
Website ”) if:

 

(i)                                   the
Facility Agent expressly agrees (after consultation with each of the Lenders)
that it will accept communication of the information by this method;

 

(ii)                                both
the Relevant Company and the Facility Agent are aware of the address of and any
relevant password specifications for the Designated Website; and

 

(iii)                             the
information is in a format previously agreed between the Relevant Company and
the Facility Agent.

 

If any Lender
(a “Paper Form Lender”) does not
agree to the delivery of information electronically then the Facility Agent
shall notify the Relevant Company accordingly and the Relevant Company shall
supply the information to the Facility Agent (in sufficient copies for each
Paper Form Lender) in paper form.  In any
event the Relevant Company shall supply the Facility Agent with at least one
copy in paper form of any information required to be provided by it.

 

(b)                               The
Facility Agent shall supply each Website Lender with the address of and any
relevant password specifications for the Designated Website following
designation of that website by the Relevant Company and the Facility Agent.

 

(c)                                The
Relevant Company shall promptly upon becoming aware of its occurrence notify
the Facility Agent if:

 

(i)                                   the
Designated Website cannot be accessed due to technical failure;

 

(ii)                                  the
password specifications for the Designated Website change;

 

112

 

(iii)                             any
new information which is required to be provided under this Agreement is posted
onto the Designated Website;

 

(iv)                            any
existing information which has been provided under this Agreement and posted
onto the Designated Website is amended; or

 

(v)                               the
Relevant Company becomes aware that the Designated Website or any information
posted onto the Designated Website is or has been infected by any electronic
virus or similar software.

 

If the
Relevant Company notifies the Facility Agent under paragraph (c)(i) or
paragraph (c)(v) above, all information to be provided by the Relevant Company
under this Agreement after the date of that notice shall be supplied in paper
form unless and until the Facility Agent and each Website Lender is satisfied
that the circumstances giving rise to the notification are no longer
continuing.

 

(d)                               Any
Website Lender may request, through the Facility Agent, one paper copy of any
information required to be provided under this Agreement which is posted onto
the Designated Website.  The Relevant
Company shall comply with any such request within ten Business Days.

 

28
                               CALCULATIONS
AND CERTIFICATES 

 

28.1                      Accounts

 

In any
litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance
Party are prima facie evidence of the matters to which they relate.

 

28.2                      Certificates
and Determinations

 

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

 

28.3                      Day count
convention

 

Any interest,
commission or fee accruing under a Finance Document will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year
of 360 days or, in any case where the practice in the Relevant Interbank Market
differs, in accordance with that market practice as determined by the Facility
Agent.

 

29                                  PARTIAL INVALIDITY

 

If, at any
time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

 

113

 

30                                  REMEDIES AND WAIVERS

 

No failure to
exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Finance Documents shall operate as a waiver, nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided
by law.

 

31
                               AMENDMENTS
AND WAIVERS 

 

31.1                      Required
consents

 

(a)                                Subject
to Clause 31.2 (Exceptions) any term of the
Finance Documents may be amended or waived only with the consent of the
Majority Lenders and the Obligor and any such amendment or waiver will be
binding on all Parties.

 

(b)                               The
Facility Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this Clause.

 

(c)                                The
Facility Agent shall promptly notify the other Parties of any amendments or
waiver effected by it under paragraph (b) above

 

31.2                      Exceptions

 

(a)                                An
amendment or waiver that has the effect of changing or which relates to:

 

(i)                                   the
definition of “Majority Lenders”, “Majority Tranche A Lenders” or “Majority
Tranche C Lenders” in Clause 1.1 (Definitions);

 

(ii)                                an
extension to the date of payment of any amount under the Finance Documents;

 

(iii)                             a
reduction in the Cash Margin or the Compound Margin or a reduction in the
amount of any payment of principal, interest, fees, commission or other amount
payable to a Lender under the Finance Documents;

 

(iv)                            an
increase in or an extension of any Commitment;

 

(v)                               a
change to either of the Borrowers;

 

(vi)                            any
provision which expressly requires the consent of all the Lenders;

 

(vii)                         Clause 2.2
(Finance Parties’ rights and obligations),
Clause 21 (Changes to the Lenders)
or this Clause 31;

 

(viii)                      unless
provided for in the Finance Documents or pursuant to the enforcement of the
relevant security, a release of security over any assets granted under the
Security Documents;

 

shall not be
made without the prior consent of all the Lenders.

 

114

 

(b)                               An
amendment or waiver which relates to the rights or obligations of an Agent may
not be effected without the prior written consent of that Agent.

 

31.3                      Amendment to
correct Manifest Error

 

The Facility
Agent may agree with the Relevant Company (acting on behalf of each of the
Obligors) any amendment to or the modification of the provisions of any of the
Finance’ Documents or any schedule thereto, which is necessary to correct a
manifest error or to make an amendment which is administerial, technical or
otherwise minor in nature and the Obligors and the Finance Parties will be
bound by any such amendment or modification.

 

32                                  COUNTERPARTS

 

Each Finance
Document 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 the
Finance Document.

 

115

 

SECTION
12

GOVERNING
LAW AND ENFORCEMENT

 

33                                  GOVERNING LAW

 

This Agreement
is governed by English Law.

 

34
                               ENFORCEMENT  

 

34.1                      Jurisdiction

 

(a)                                The
courts of England have exclusive jurisdiction to settle any dispute arising out
of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute ”).

 

(b)                               The
Parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.

 

(c)                                This
Clause 34.1 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be
prevented from taking proceedings relating to a Dispute in any other courts
with jurisdiction.  To the extent allowed
by law, the Finance Parties may take concurrent proceedings in any number of
jurisdictions.

 

34.2                      Service of
process

 

Without
prejudice to any other mode of service allowed under any relevant law, each
Obligor (other than an Obligor incorporated in England and Wales):

 

(i)                                   irrevocably
appoints Clifford Chance Secretaries Limited as its agent for service of
process in relation to any proceedings before the English courts in connection
with any Finance Document; and

 

(ii)                                agrees
that failure by a process agent to notify the relevant Obligor of the process
will not invalidate the proceedings concerned.

 

34.3                      Waiver of
trial by jury

 

Each Party
waives any right it may have to a jury trial of any claim or cause of action in
connection with or arising out of any Finance Document or any transaction
contemplated by any Finance Document. 
This Agreement may be filed as a written consent to trial by court.

 

 

SCHEDULE 1

THE
ORIGINAL PARTIES

 

Part
I

The Borrowers

 

	
  Name
  of Borrower

  	
   

  	
  Registration number (or equivalent,
  if 

  any)

  
	
   

  	
   

  	
   

  
	
  Concordia Bus AB

  	
   

  	
  556576-4569

  
	
   

  	
   

  	
   

  
	
  Concordia Bus Nordic Holding AB

  	
   

  	
  556028-1122

  

 

 

Part II

The
Original Lenders

 

Amounts in Euros

 

	
  Name of Original

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender

  	
   

  	
  Tranche A

  	
   

  	
  Tranche C

  	
   

  
	
  BlueBay High Yield (Master) Fund Limited

  	
   

  	
  14,000,000

  	
   

  	
  7,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bear Stearns Bank plc

  	
   

  	
  9,000,000

  	
   

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lone Star International Finance Ltd.

  	
   

  	
  7,000,000

  	
   

  	
  3,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hillside Apex Fund Limited

  	
   

  	
  6,500,000

  	
   

  	
  3,600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse First Boston International

  	
   

  	
  8,500,000

  	
   

  	
  4,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  45,000,000

  	
   

  	
  25,000,000

  	
   

  

 

Each Original Lender undertakes such
Commitments as are set out below the name of that Original Lender on the
relevant signature page hereto.

 

118

 

SCHEDULE 2

CONDITIONS
PRECEDENT

 

Part IA

Conditions precedent to initial Utilisation
of Tranche A

 

1              Concordia Bus AB

 

1.1           Receipt
by the Facility Agent of a copy of each of the following documents in
substantially the form submitted to the Lenders prior to the signing of this
Agreement signed on behalf of the relevant parties where appropriate:

 

(a)   A
certificate from a director of Bus substantially in the form submitted to the
Lenders prior to the signing of this Agreement confirming that each of the following
documents they provided at the time when Tranche C was utilised, in relation
to:

 

(i)    the
constitutional documents of Bus ; and

 

(ii)   the
specimen of the signature of each authorised person; and

 

remain
correct, valid, complete and in full force as at the date on which Tranche A is
to be utilised and confirming that any borrowing under Tranche A would not
cause any borrowing, guaranteeing or similar limit binding on Bus to be
exceeded.

 

(b)   A
resolution of the board of directors of Bus:

 

(i)    approving
the utilisation of Tranche A in accordance with the terms of this Agreement;
and

 

(ii)   authorising
any two directors, or a director and secretary, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation
Request) to be signed and/or despatched by it under or in connection with the
Finance Documents to which it is a party.

 

2              Security Documents

 

2.1           Receipt
by the Facility Agent of a copy of each of the following Security Documents,
each signed on behalf of Bus, in substantially the form submitted to the
Lenders prior to the signing of this Agreement:

 

(a)           a
pledge agreement entered into by Bus over its Share Capital in Holding in
favour of the Security Agent on behalf of the Tranche A Lenders substantially
in the form submitted to the Lenders prior to the signing of this Agreement;
and

 

(b)           A
first ranking pledge agreement, entered into by Bus of the Intra-Group Capital
Contribution in favour of the Security Agent on behalf of the Tranche A
Lenders; and

 

119

 

(c)           a
first ranking pledge agreement by Bus of the Subordinated Shareholder Loan in
favour of the Security Agent on behalf of the Tranche A Lenders.

 

3              Other Documents
respect of the Tranche A Facility

 

3.1           Receipt
by the Facility Agent of the share register of Holding indicating that all of
the Share Capital in Holding has been pledged to the Security Agent on behalf
of the Tranche A Lenders.

 

3.2           A
legal opinion of Cadwalader Wickersham & Taft LLP, legal advisers to the
Lenders in England which is in a form satisfactory to the Lenders and which is
substantially in the form distributed to the Original Lenders prior to signing
this Agreement.

 

3.3           A
legal opinion of Advokatfirman Lindahl Swedish legal advisers to the Holding in
the relevant jurisdiction which is in a form satisfactory to the Lenders and
which is substantially in the form distributed to the Original Lenders prior to
signing this Agreement.

 

120

 

Part
IB

[Reserved]

 

121

 

Part
IC

Conditions precedent to initial Utilisation
of Tranche C

 

1              Concordia Bus Nordic
Holding AB

 

1.1           Receipt by the Facility
Agent of a copy of each of the following documents, substantially in the form
submitted to the Lenders prior to the signing of this Agreement  signed on behalf of the relevant parties
where appropriate:

 

(a)           The constitutional
documents of Bus and Holding.

 

(b)           Resolutions of the board
of directors of Bus and Holding:

 

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

 

(ii)           authorising any director
to execute the Finance Documents to which it is a party on its behalf; and

 

(iii)          authorising
any two directors, or a director and secretary, on its behalf, to sign and/or
despatch all documents and notices (including, if relevant, any Utilisation
Request) to be signed and/or despatched by it under or in connection with the
Finance Documents to which it is a party.

 

(c)           A specimen of the
signature of each person authorised by the resolutions referred to in paragraph
(b) above.

 

(d)           A certificate of a
director of Holding in substantially in the form submitted to the Lenders prior
to the signing of this Agreement confirming that:

 

(i)            any borrowing under
Tranche C would not cause any borrowing, guaranteeing or similar binding limit
on it to be exceeded;

 

(ii)           each document relating
to it specified in paragraph (a) and (b) this Clause 1 of Part 1C of Schedule 2
is correct, complete and in full force and effect as at a date no earlier than
the date of this Agreement.

 

(e)           A certificate of a
director of Bus confirming that each document relating to it specified in
paragraph (a) and (b) of this Clause 1 of Part IC of Schedule 2 is correct,
complete and in full force and effect as at a date no earlier than the date of
this Agreement.

 

122

 

2              Security Documents

 

2.1           Receipt by the Facility
Agent of a copy of each of the following Security Documents, in substantially
the form submitted to the Lenders prior to the signing of this Agreement :

 

(a)           A first ranking pledge
agreement, entered into by Holding of the Subordinated Shareholder Loan in
favour of the Security Agent on behalf of the Tranche C Lenders signed on
behalf of Holding;

 

(b)           A first ranking pledge
agreement, entered into by Holding of the Intra-Group Capital Contribution in
favour of the Security Agent on behalf of the Tranche C Lenders signed on
behalf of Holding; and

 

(c)           A first ranking pledge
agreement, entered into by Holding of the SSL Account signed on behalf of
Holding.

 

3              Other documents and
evidence

 

3.1           A
legal opinion of Cadwalader Wickersham & Taft LLP, legal advisers to the
Lenders in England which is in a form satisfactory to the Lenders and which is
substantially in the form distributed to the Original Lenders prior to signing
this Agreement.

 

3.2           A
legal opinion of Advokatfirman Lindahl Swedish legal advisers to the Holding in
the relevant jurisdiction which is in a form satisfactory to the Lenders and
which is substantially in the form distributed to the Original Lenders prior to
signing this Agreement.

 

3.3           Receipt
by the Facility Agent of a copy of each of the following documents,
substantially in the form submitted to the Lenders prior to the signing of this
Agreement :

 

(a)   The
following agreements:

 

(i)            the Binding
Restructuring Agreement substantially in the form submitted to the Lenders
prior to the signing of this Agreement, signed on behalf of each of the
Borrowers, Nordic, each of the Senior Group (as defined therein) and each of
the Controlling Shareholders (as defined therein);

 

(ii)           the transfer agreement
and Limited Recourse Note substantially in the form submitted to the Lenders
prior to the signing of this Agreement between Bus and Holding, whereby Bus
transfers to Holding the Subordinated Shareholder Loan and all rights appurtenant
thereto; and

 

(iii)          the
transfer agreement substantially in the form submitted to the Lenders prior to
the signing of this Agreement between Bus and Holding, whereby Bus transfers to
Holding part of the Intra-Group Capital Contribution and all rights appurtenant
thereto.

 

(b)   Written
evidence substantially in the form submitted to the Lenders prior to the
signing of this Agreement that any process agents referred to in Clause 34.2 (Service of process), if not Holding, has
accepted its appointment.

 

123

 

(c)   A
schedule designating Unrestricted Subsidiaries, including all relevant
Officer’s Certificate and Board Meeting Minutes, substantially in the form
submitted to the Lenders prior to the signing of this Agreement.

 

(d)   The
Fees Letter signed on behalf of the Tranche A Borrower and the Tranche C
Borrower.

 

(e)   The
Facility Agent fee letter, signed on behalf of the Tranche A Borrower and the
Tranche C Borrower.

 

124

 

SCHEDULE
3

REQUESTS

 

FORM
OF UTILISATION REQUEST

 

From:  [Concordia Bus AB/Concordia Bus Nordic
Holding AB] 

 

To:  Deutsche Bank Luxembourg, S.A. as Facility
Agent 

 

Dated:

 

Mezzanine
Facility Agreement

 

dated [ • ] (the “Agreement ”)

 

1.             We refer to the
Agreement.  This is a Utilisation
Request.  Terms defined in the Agreement
have the same meaning in this Utilisation Request unless given a different
meaning in this Utilisation Request.

 

We wish to borrow an Advance to be issued on
the following terms:

 

	
  Tranche Facility to be utilised:

  	
   

  	
  [          ]

  
	
   

  	
   

  	
   

  
	
  Proposed Utilisation Date: Day)

  	
   

  	
  [          ] (or,
  if that is not a Business Day, the next Business Day)

  
	
   

  	
   

  	
   

  
	
  Amount:

  	
   

  	
  [          ] or, if
  less, the Available Facility:

  
	
   

  	
   

  	
  [

  	
  ]

  
	
   

  	
   

  	
   

  
	
  First Interest Period:

  	
   

  	
  [          ]

  

 

We confirm that each condition precedent
under the Agreement which must be satisfied on the date of this Utilisation
Request is so satisfied on the date of this Utilisation Request.

 

The proceeds
of this Advance should be credited to [account]. 

 

This
Utilisation Request is irrevocable. 

 

Yours
faithfully

 

	
   

  	
   

  
	
   

  
	
  authorised signatory for

  
	
  [Concordia Bus AB/Concordia Bus Nordic
  Holding AB]

  

 

125

 

SCHEDULE
4

MANDATORY
COST FORMULAE

 

1.             The Mandatory Cost is
an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the
Financial Services Authority (or, in either case, any other authority which
replaces all or any of its functions) or (b) the requirements of the European
Central Bank.

 

On the first day of each Interest Period (or
as soon as possible thereafter) the Agent shall calculate, as a percentage
rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with
the paragraphs set out below.  The
Mandatory Cost will be calculated by the Agent as a weighted average of the
Lenders’ Additional Cost Rates (weighted in proportion to the percentage
participation of each Lender in the relevant Advance) and will be expressed as
a percentage rate per annum.

 

The Additional Cost Rate for any Lender
lending from a Facility Office in a Participating Member State will be the
percentage notified by that Lender to the Agent.  This percentage will be certified by that
Lender in its notice to the Agent to be its reasonable determination of the
cost (expressed as a percentage of that Lender’s participation in all Advances
made from that Facility Office) of complying with the minimum reserve
requirements of the European Central Bank in respect of loans made from that
Facility Office.

 

The Additional Cost Rate for any Lender
lending from a Facility Office in the United Kingdom will be calculated by the
Agent as follows:

 

in relation to a sterling Advance:

 

AB+C(B-D)+Ex0.01  per cent. per
annum

100-(A+C)

 

in relation to a Advance in any currency
other than sterling:

 

Ex 0.01  percent. per annum.

  300

 

Where:

 

(A)          is
the percentage of Eligible Liabilities (assuming these to be in excess of any
stated minimum) which that Lender is from time to time required to maintain as
an interest free cash ratio deposit with the Bank of England.  to comply with cash ratio requirements.

 

(B)           is
the percentage rate of interest (excluding the Margin and the Mandatory Cost
and, if the Advance is an Unpaid Sum, the additional rate of interest specified
in paragraph (a) of 8.5 (Default interest))
payable for the relevant Interest Period on the Advance.

 

 

(C)           is
the percentage (if any) of Eligible Liabilities which that Lender is required
from time to time to maintain as interest bearing Special Deposits with the
Bank of England.

 

(D)          is
the percentage rate per annum payable by the Bank of England to the Lenders on
interest bearing Special Deposits.

 

(E)           is
designed to compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Facility Agent as being the average of the most recent rates
of charge supplied by the Reference Banks to the Agent pursuant to paragraph 7
below and expressed in pounds per £1,000,000.

 

For the purposes of this Schedule:

 

“Eligible
Liabilities” and “Special Deposits”
have the meanings given to them from time to time under or pursuant to the Bank
of England Act 1998 or (as may be appropriate) by the Bank of England;

 

“Fee
Tariffs” means the fee tariffs specified in the Fees Rules under the
activity group A.I Deposit acceptors (ignoring any minimum fee or zero rated
fee required pursuant to the Fees Rules but taking into account any applicable
discount rate); and

 

“Tariff
Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

 

“Fees Rules”
means the rules on periodic fees contained in the FSA Supervision Manual or
such other law or regulation as may be in force from time to time in respect of
the payment of fees for the acceptance of deposits;

 

In application of the above formulae, A, B, C
and D will be included in the formulae as Percentages (i.e. 5 per cent. will be
included in the formula as 5 and not as 0.05). 
A negative result obtained by subtracting D from B shall be taken as
zero.  The resulting figures shall be
rounded to four decimal places.

 

If requested by the Facility Agent, each
Reference Bank shall, as soon as practicable after publication by the Financial
Services Authority, supply to the Lenders, the rate of charge payable by that
Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority
(calculated for this purpose by that Reference Bank as being the average of the
Fee Tariffs applicable to that Reference Bank for that financial year) and
expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 

Each Lender shall supply any information
required by the Agent for the purpose of calculating its Additional Cost
Rate.  In particular, but without
limitation, each Lender shall supply the following information on or prior to
the date on which it becomes a Lender:

 

(a)           the
jurisdiction of its Facility Office; and

 

(b)           any
other information that the Facility Agent may reasonably require for such
purpose.

 

Each Lender shall promptly notify the
Facility Agent of any change to the information provided by it pursuant to this
paragraph.

 

127

 

The percentages of each Lender for the
purpose of A and C above and the rates of charge of each Reference Bank for the
purpose of E above shall be determined by the Agent based upon the information
supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Facility Agent to the contrary, each Lender’s
obligations in relation to cash ratio deposits and Special Deposits are the
same as those of a typical bank from its jurisdiction of incorporation with a Facility
Office in the same jurisdiction as its Facility Office.

 

The Facility Agent shall have no liability to
any person if such determination results in an Additional Cost Rate which over
or under compensates any Lender and shall be entitled to assume that the
information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.

 

The Facility Agent shall distribute the
additional amounts received as a result of the Mandatory Cost to the Lenders on
the basis of the Additional Cost Rate for each Lender based on the information
provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and
8 above.

 

Any determination by the Facility Agent
pursuant to this Schedule in relation to a formula, the Mandatory Cost, an
Additional Cost Rate or any amount payable to a Lender shall, in the absence of
manifest error, be conclusive and binding on all Parties.

 

The Facility Agent may from time to time,
after consultation with the Relevant Company and the Lenders, determine and
notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any
requirements from time to time imposed by the Bank of England, the Financial Services
Authority or the European Central Bank (or, in any case, any other authority
which replaces all or any of its functions) and any such determination shall,
in the absence of manifest error, be conclusive and binding on all Parties.

 

128

 

SCHEDULE
5

FORM OF TRANSFER CERTIFICATE

 

To: Deutsche Bank Luxembourg, S.A. as
Facility Agent

 

From: [The
Existing Lender] (the “Existing Lender”)
and [The New Lender] (the “New Lender”)

 

Dated:

 

Mezzanine
Facility Agreement

 

dated
[ • ] (the “Agreement”)

 

1.             We refer to the
Agreement.  This is a Transfer
Certificate.  Terms defined in the
Agreement have the same meaning in this Transfer Certificate unless given a
different meaning in this Transfer Certificate.

 

We refer to Clause 21.5 (Procedure for transfer):

 

The Existing Lender and the New Lender agree
to the Existing Lender transferring to the New Lender by novation all or part
of the Existing Lender’s Commitment, rights and obligations referred to in the
Schedule in accordance with Clause 21.5 (Procedure
for transfer).

 

The proposed Transfer Date is [ • ].  From the Transfer Date, the New Lender will
be bound by the Finance Documents as a Lender and will become party to the
Mezzanine Facility Agreement.

 

From the Transfer Date, the New Lender will
be bound by the Binding Restructuring Agreement.

 

The Facility Office and address, fax number
and attention details for notices of the New Lender for the purposes of Clause
27.2 (Addresses) are set out in
the Schedule.  The New Lender expressly
acknowledges the limitations on the Existing Lender’s obligations set out in
paragraph (c) of Clause 21.4 (Limitation of
responsibility of Existing Lenders).

 

This Transfer Certificate 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 Transfer Certificate.

 

This Transfer Certificate is governed by
English law and the courts of England have jurisdiction to settle all disputes
which arise out of, or are connected with, this Transfer Certificate, its
negotiation or the consequences of its nullity.

 

129

 

THE
SCHEDULE

 

COMMITMENT
RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

 

[insert
relevant details]

 

[Facility Office address, fax number and attention details for notices
and account details for payments,]

 

[Existing
Lender]                                                         [New
Lender]

 

By:                                                                                 By:

 

This Transfer Certificate is accepted by the
Facility Agent and the Transfer Date is confirmed as [ • ]. 

 

Facility Agent

 

DEUTSCHE BANK LUXEMBOURG S.A.

 

By:

 

130

 

SCHEDULE
6

STRUCTURE
PAPER

 

[INSERT]

 

 

SCHEDULE
7

SECURITY AGENT: FORM OF ACCOUNT AUTHORISATION

 

To:          Östgöta
Enskilda Bank, Danske Bank A/S Danmark, Sverige Filial,  

                Kungsholmen
Företag 

                Box
12129 

                Fleminggatan
20 

                S-102
24 Stockholm 

                Sweden

 

From:  Citicorp Trustee Company Limited, as Security
Agent 

 

Dated:  

 

Dear Sirs,

 

Pledge
over Account Number EUR 1345-01-11647 (the “Account”)

held
by Concordia Bus Nordic Holding AB (“Holding”)

dated
    July 2005

 

1.             We refer to the
pledge over the Account (the “Pledge ”).  In our role as Security Agent with respect to
a Mezzanine Facility Agreement entered into by Holding (the “Agreement ”), we are pledgee under the
Pledge.

 

2.             You have been given
an irrevocable instruction by Holding not to allow any withdrawal from the
Account except on our written instruction. This letter is a payment instruction
and account authorisation.  It remains valid
until further notice.

 

3.             “Interest Payment Dates” under the Agreement
are 15 December and 15 June in each year. 
An Interest Payment Date may be changed, in which case the Facility
Agent will notify you of the new Interest Payment Date.  Each “Interest
Period” is the period commencing on an Interest Payment Date and
terminating on the date which is the day before the next Interest Payment Date.

 

4.             The “Facility Agent ” is Deutsche Bank
Luxembourg S.A., as Facility Agent under the Agreement.  We understand that the Facility Agent shall,
from time to time, and on or prior to each Interest Payment Date, send to you a
notice an “Interest Payment Notice”
which, inter alia, shall set out the amount of Cash Interest due under the
Agreement plus amounts in respect of taxes and Increased Costs thereon.

 

5.             Subject to paragraph
7 below, we hereby instruct you to make payment from the Account in accordance
with the terms of each notice you receive from the Facility Agent.

 

6.             We understand that
from time to time the Facility Agent shall send to you a notice (a “Repayment Notice”).  The payment instructions contained in any
Repayment Notice shall apply in precedence over any Interest Payment Notice.

 

132

 

7.             We are not
responsible for the provision of, or content or timing of any Interest Payment
Notice or Repayment Notice.

 

8.             We acknowledge that
you, as Account Bank, shall have no responsibility for verifying the signing
authority or signature of any person signing on behalf of the Security Agent or
the Facility Agent.

 

9.             Save as directed by
the Facility Agent no payment from the Account shall be made.

 

Yours faithfully

 

	
   

  	
   

  
	
   

  
	
  authorised signatory for

  

Citicorp Trustee Company Limited, as Security
Agent

 

 

Given by the
Security Agent on the

instruction of
Deutsche Bank Luxembourg S.A., as Facility Agent, 

acting on the
instruction and authority of the Lenders

 

 

	
   

  	
   

  
	
   

  
	
  authorised signatory for

  

Deutsche Bank Luxembourg S.A., as Facility
Agent

 

133

 

SCHEDULE
8

FORM OF COMPLIANCE CERTIFICATE

 

To: 
Deutsche Bank Luxembourg, S.A. as Facility Agent

 

From:  [Concordia Bus AB] / [Concordia Bus Nordic
Holding AB] 

 

Dated:  

 

Dear Sirs,

 

Mezzanine
Facility Agreement

 

dated
         July 2005 (the “Agreement ”)

 

We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same
meaning when used in this Compliance Certificate unless given a different
meaning in this Compliance Certificate.

 

[We confirm that to the best knowledge of the
signatories below and after due enquiry, [Concordia Bus AB] / [Concordia Bus
Nordic Holding AB] is [not] in default in the performance and observance of any
of the terms, provisions and conditions of the Agreement.]*

 

Signed:

 

 

Principal
executive officer, principal financial officer or principal accounting officer
of

[Concordia Bus
AB] / [Concordia Bus Nordic Holding AB] 

[insert applicable certification language]

 

 

* State default and nature and status thereof
if a default has occurred.

 

134

 

 

SCHEDULE
9 – FORMS OF PAYMENT NOTICE

 

Part I 

SSL Account 

Interest
Payment Notice

 

To:          Östgöta
Enskilda Bank, Danske Bank A/S Danmark, Sverige Filial,  

                Kungsholmen
Företag 

                Box
12129 

                Fleminggatan
20 

                S-102
24 Stockholm 

                Sweden

 

From:  Deutsche Bank Luxembourg S.A., as Facility
Agent 

 

Dated:  

 

Dear Sirs,

 

Account
Number EUR 1345-01-11647 (the “Account”) 

held by Concordia Bus Nordic Holding AB (“Holding”)

 

Interest
Payment Notice

 

1              We refer to the
Account Authorisation given by Citicorp Trustee Company Limited, as Security
Agent with respect to the Account.  We
are the Facility Agent under the Mezzanine Facility Agreement entered into by
Holding (the “Agreement”), as identified in the Account Authorisation.

 

2              In the Account
Authorisation, the Security Agent informed you that, from time to time, we
would provide you with instructions on making payment from the Account.  This is such an instruction.

 

3              [ date ] is the next Interest Payment Date
under the Agreement.  From that date and
until further notice, you shall apply any funds held or received to the credit
of the Account as follows:

 

(i)            first, in payment to our bank account,
held in the name of Deutsche Bank Luxembourg S.A. at Deutsche Bank AG,
Frankfurt, Account Number 100 9380 999 0000 (Swift : DEUTDEFF), with payment
reference “Concordia Bus Mezzanine Facility”, until the total amount of the
funds so paid during that Interest Period is equal to EUR [ • ], being the amount of Cash
Interest due to the Facility Agent under the Agreement on the Interest Payment
Date; and

 

(ii)           second, after the sum specified in
paragraph (i) above has been paid to the relevant account, in payment of the
balance to the bank account in

 

135

 

the name of
Concordia Bus AB, number 3144-7810120 SEK (SWIFT code: NDEASESS) held at Nordea
Bank AB.

 

4              You shall not make
any payment from the Account from the time you receive this notice until the
Interest Payment Date.

 

5              This Interest
Payment Notice may be revoked or varied at any time by further written notice
from us.

 

6              We acknowledge that
you, as Account Bank, shall have no responsibility for verifying the signing
authority or signature of any person signing on behalf of the Security Agent or
the Facility Agent.

 

Given by the Facility Agent acting on the
instruction and authority of the Lenders

 

	
   

  	
   

  
	
   

  
	
  authorised signatory for

  

Deutsche Bank Luxembourg S.A., as Facility
Agent

 

136

 

Part II 

SSL Account

 

Prepayment / Repayment Notice

 

To:          Östgöta
Enskilda Bank, Danske Bank A/S Danmark, Sverige Filial,  

                Kungsholmen
Företag 

                Box
12129 

                Fleminggatan
20 

                S-102
24 Stockholm 

                Sweden

 

From:  Deutsche Bank Luxembourg S.A., as Facility
Agent 

 

Dated:  

 

Dear Sirs,

 

Account
Number EUR 1345-01-11647 (the “Account”) 

held
by Concordia Bus Nordic Holding AB (“Holding”)

 

Prepayment
/ Repayment Notice

 

1              We refer to the
Account Authorisation given by Citicorp Trustee Company Limited, as Security
Agent with respect to the Account.  We
are the Facility Agent under the Mezzanine Facility Agreement entered into by
Holding (the “Agreement “), as
identified in the Account Authorisation.

 

2              In the Account
Authorisation, the Security Agent informed you that, from time to time, we
would provide you with Instructions on making payment from the Account.  This is such an instruction.

 

3              This Repayment
Notice revokes any Interest Payment Notice or other instruction you have
received from us as Facility Agent.  You
shall not make any payment from the Account except in accordance with this
Repayment Notice. This Repayment Notice remains valid until further notice.

 

4              [Bus / Holding] has
notified us that on [ date ] (the
“Repayment Date”), a prepayment
will be made in respect of the Tranche [
• ] Facility, as defined in the Agreement.  As soon as a payment is received to the
credit of the Account, you shall apply any funds held or received to the credit
of the Account as follows:

 

(i)             first,
in payment to our bank account, held in the name of Deutsche Bank Luxembourg
S.A. at Deutsche Bank AG, Frankfurt, Account Number 100 9380 999 0000 (Swift :
DEUTDEFF), with payment reference “Concordia Bus Mezzanine Facility”, until the
total amount of the funds so paid is equal to EUR [·], being the total amount of principal and
interest to be paid on that Advance, including accrued but

 

137

 

unpaid
interest, Compound Interest, unpaid Cash Interest which has accrued to the
principal amount of the Advance, outstanding on the Tranche C [or A] Facility
on the Repayment Date and any amount which the Borrower has notified the
Facility Agent will be paid on that Interest Payment Date in accordance with
Clause 8.7 of the Agreement together with taxes and Increased Costs; and

 

(ii)           second, after the sum specified in
paragraph (i) above has been paid to the relevant account, in payment of the
balance to the bank account in the name of Concordia Bus AB, number
3144-7810120 SEK (SWIFT code: NDEASESS) held at Nordea Bank AB.

 

5              This Repayment
Notice may be revoked or varied at any time by further written notice from us.

 

6              We acknowledge that
you, as Account Bank, shall have no responsibility for verifying the signing
authority or signature of any person signing on behalf of the Security Agent or
the Facility Agent.

 

Given by the Facility Agent acting on the
instruction and authority of the Lenders

 

	
   

  	
   

  
	
   

  
	
  authorised signatory for

  

Deutsche Bank Luxembourg S.A., as Facility
Agent

 

138

 

SIGNATURES

 

 

THE
BORROWERS 

Concordia
Bus AB

 

 

	
  By:

  	
  /s/ HARALD AERNKVAERN

  	
   

  

 

 

	
  By:

  	
  /s/ STEVEN SHER

  	
   

  

 

	
  Address:

  	
   

  	
  c/o Solna
  Strandväg 78

  
	
   

  	
   

  	
  SE-171 54
  Solna

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  

 

Concordia Bus Nordic Holding AB

 

 

	
  By:

  	
  /s/ HARALD AERNKVAERN

  	
   

  

 

 

	
  By:

  	
  /s/ STEVEN SHER

  	
   

  

 

	
  Address:

  	
   

  	
  c/o Solna
  Strandväg 78  

  
	
   

  	
   

  	
  SE-171 54
  Solna

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  

 

 

THE FACILITY AGENT

DEUTSCHE BANK LUXEMBOURG S.A.

 

 

	
  By:

  	
  /s/ BANU OZKUTAN

  	
   

  

 

 

	
  By:

  	
  /s/ FRANZ-JOSEF EWERHARD

  	
   

  

 

	
  Address:

  	
   

  	
  2 Boulevard
  Konrad Adenauer

  
	
   

  	
   

  	
  L-1115
  Luxembourg

  
	
  Fax:

  	
   

  	
  +352 421 22
  287

  

 

 

THE SECURITY AGENT

CITICORP TRUSTEE COMPANY LIMITED

 

 

	
  By:

  	
  /s/ JILLIAN HAMBLIN

  	
   

  

 

 

 

	
  Address:

  	
   

  	
  Global
  Transaction Services

  
	
   

  	
   

  	
  14th
  Floor, Citigroup Centre  

  
	
   

  	
   

  	
  Canada
  Square, Canary Wharf

  
	
   

  	
   

  	
  London, E14
  5LB

  

 

Email address: jillian.hamblin@citigroup.com

 

Fax: +44 (0) 20 7500 5877

 

140

 

Mezzanine
Facility Agreement

 

THE LENDERS

 

For and on behalf of

 

	
  Lender’s
  name:

  	
   

  	
  Bear Stearns
  Bank plc

  
	
   

  	
   

  	
   

  
	
  Lender’s
  address:

  	
   

  	
  Block 8,
  Harcourt Centre

  
	
   

  	
   

  	
  Charlotte
  Way

  
	
   

  	
   

  	
  Dublin 2

  
	
   

  	
   

  	
  Ireland

  

 

 

	
  Signature:

  	
  /s/ NIAMH WALSH

  	
   

  

 

Title:               JOINT CHIEF EXECUTIVE OFFICER 

 

Email address:
mpaget@bear.com 

 

Direct Line :
+44 (0) 20 7516 5492

 

 

THE LENDERS

 

 

For and on behalf of

 

	
  Lender’s
  name:

  	
   

  	
  The BlueBay
  High Yield (Master) Fund Limited

  
	
   

  	
   

  	
   

  
	
  Lender’s
  address:

  	
   

  	
  Times Place

  
	
   

  	
   

  	
  45 Pall Mall

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  SW1Y 5JG
  (Administrative address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ HUGH
  WILLIS

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  DIRECTOR

  
					

 

Email address: ggermano@bluebayinvest.com

 

Direct Line : +44 (0) 20 7389 3740

 

 

THE LENDERS

 

For and on behalf of

 

	
  Lender’s
  name:

  	
   

  	
  Lone Star
  International Finance Ltd.

  
	
   

  	
   

  	
   

  
	
  Lender’s
  address:

  	
   

  	
  HSBC House,
  Harcourt Centre

  
	
   

  	
   

  	
  Harcourt
  Street

  
	
   

  	
   

  	
  Dublin 2

  
	
   

  	
   

  	
  Ireland

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ EILEEN
  RONAYN

  	
   

  
	
  Title:

  	
  ALTERNATE
  DIRECTOR

  
					

 

Email address:
jhennessy@hudson-advisers.com 

 

Direct Line :
+ 353 1 478 8600

 

 

THE LENDERS

 

 

For and on behalf of

 

	
  Lender’s
  name:

  	
   

  	
  Hillside
  Apex Fund Limited

  
	
   

  	
   

  	
   

  
	
  Lender’s
  address:

  	
   

  	
  c/o Appleby
  Corporate Services (Cayman) Lmiited

  
	
   

  	
   

  	
  Clifton
  House, 75 Fort Street

  
	
   

  	
   

  	
  PO Box 1350
  GT

  
	
   

  	
   

  	
  Grand Cayman

  
	
   

  	
   

  	
  Cayman
  Islands

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ DOUGLAS
  MACKAY

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  ALTERNATE
  DIRECTOR

  
					

 

	
  Email address:

  	
   

  	
  lgaudino@thamesriver.co.uk /
  ccurrington@thamesriver.co.uk

  
	
   

  	
   

  	
   

  
	
  Direct Line:

  	
   

  	
  020 7360 1305 / 020 7360 1248

  

 

 

THE LENDERS

 

 

For and on behalf of

 

	
  Lender’s
  name:

  	
   

  	
  Credit
  Suisse First Boston International

  
	
   

  	
   

  	
   

  
	
  Lender’s
  address:

  	
   

  	
  One Cabot
  Square

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  E14 4QJ

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ EMMA
  BALAAM

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
					

 

 

Email address:
joseph.tierney@csfb.com 

 

Direct Line:
+44 (0) 20 7888 6601

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]