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Exhibit 10.1

FORM OF GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.
RESTRICTED SHARE AWARD AGREEMENT

        This RESTRICTED SHARE AWARD AGREEMENT (the “Award”) is made and entered into as of the 15th day of June, 2020, by and between Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the “Company”), and [_________] (the “Participant”).

        Upon and subject to the Additional Terms and Conditions attached hereto and incorporated herein by reference as part of this Award, the Company hereby awards as of the Grant Date to the Participant the Restricted Shares described below in consideration of the Participant’s services to the Company and Participant hereby accepts the Restricted Shares subject to the terms of the Plan and this Award.

A. Grant Date:  June 15, 2020

B. Restricted Shares:  8,055 shares of the Company’s Common Stock, $0.001 par value per share.

C. Plan (under which Award is granted): Griffin Capital Essential Asset REIT, Inc. Amended and Restated Employee and Director Long-Term Incentive Plan

D. Vesting Schedule:  The Restricted Shares shall become vested in accordance with the following schedule:
            Percentage of Restricted Shares
        Vesting Date          which are Vested Shares

         Grant Date           50%
One Year from the Grant Date     50%
         
Notwithstanding the foregoing, the Restricted Shares shall become fully vested if the Participant provides continuous services to the Company and/or any Affiliate following the Grant Date through the effective date of a Liquidation Event.

The Restricted Shares which have become vested pursuant to the Vesting Schedule are herein referred to as the “Vested Shares.”  If a tranche of Restricted Shares that become vested includes a fraction of a share, such fractional share shall be rounded up or down to the next nearest whole number.

The Participant shall receive credit for service for each twelve-consecutive-month period commencing on June 15, 2020 (or an anniversary thereof) during which the Participant continuously remains a director for the Company.  No credit will be given for completion of a partial year of service and no period of time following a Participant’s service as a director for the Company shall count towards the vesting of Restricted Shares.  Any portion of the Restricted Shares which have not become Vested Shares in accordance with the Vesting Schedule before or at the time of a Participant ceasing to be a director with the Company shall be forfeited. 

        IN WITNESS WHEREOF, the Company and Participant have signed this Award as of the Grant Date set forth above.

        Griffin Capital Essential Asset REIT, Inc.

												
	By:			
				Participant
	Title: 			
				

        
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ADDITIONAL TERMS AND CONDITIONS OF
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.
RESTRICTED SHARE AWARD

1. Code Section 83(b) Election.  Pursuant to Section 23.5 of the Plan, the Participant acknowledges that the Participant may not make an election under Section 83(b) of the Code without the Company’s consent.  Any attempt by the Participant to make an election under Section 83(b) of the Code without the Company’s consent will result in the immediate forfeiture of this Award.

2. Issuance of Restricted Shares.  

        (a) The Company shall issue the Restricted Shares as of the Grant Date in one or more of the manners described below, as determined by the Company, in its sole discretion:

        (i) by the issuance of share certificate(s) evidencing Restricted Shares to the Secretary of the Company or such other agent of the Company as may be designated by the Company or the Secretary (the “Share Custodian”); or

(ii) by documenting the issuance in uncertificated or book entry form on the Company’s stock records.  

Evidence of the Restricted Shares either in the form of share certificate(s) or book entry, as the case may be, shall be held by the Share Custodian or the Company, as applicable, until the Restricted Shares become Vested Shares in accordance with the Vesting Schedule. 

(b) In the event that the Participant forfeits any of the Restricted Shares, the Company shall cancel the issuance on its stock records and, if applicable, the Share Custodian shall promptly deliver the share certificate(s) representing the forfeited shares to the Company.

(c) Participant hereby irrevocably appoints the Share Custodian, and any successor thereto, as the true and lawful attorney-in-fact of Participant with full power and authority to execute any stock transfer power or other instrument necessary to transfer any Restricted Shares to the Company in accordance with this Award, in the name, place, and stead of the Participant, by completing an irrevocable stock power in favor of the Share Custodian in the form attached hereto as Exhibit 1.  The term of such appointment shall commence on the Grant Date of this Award and shall continue until the last of the Restricted Shares are delivered to the Participant as Vested Shares or are returned to the Company as forfeited Restricted Shares.

(d) In the event the number of shares of Common Stock is increased or reduced as a result of a subdivision or combination of shares of Common Stock or the payment of a stock dividend or any other increase or decrease in the number of shares of Common Stock or other transaction such as a merger, reorganization or other change in the capital structure of the Company, the Participant agrees that any certificate representing shares of Common Stock or other securities of the Company issued as a result of any of the foregoing shall be delivered to the Share Custodian or recorded in book entry form, as applicable, and shall be subject to all of the provisions of this Award as if initially granted hereunder.

3. Rights of a Stockholder.  Until the stock ledger entry reflecting the Restricted Shares accruing to the Participant upon vesting of the Restricted Shares is made, the Participant shall not have any rights as a stockholder.

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4. Dividends.  The Participant shall be entitled to dividends or other distributions paid or made on Restricted Shares but only as and when the Restricted Shares to which the dividends or other distributions are attributable become Vested Shares.  Dividends paid on Restricted Shares will be held by the Company and transferred to the Participant, without interest, on such date as the Restricted Shares become Vested Shares.  Dividends or other distributions paid on Restricted Shares that are forfeited shall be retained by the Company.

5. Restrictions on Transfer of Restricted Shares.  

(a) Except to the extent approved in writing by the Committee, the Participant shall not have the right to make or permit to exist any transfer or hypothecation, whether outright or as security, with or without consideration, voluntary or involuntary, of all or any part of any right, title, or interest in or to any Restricted Shares or Vested Shares prior to the date the Participant becomes fully vested in all Restricted Shares granted pursuant to this Award.  After all Restricted Shares have become fully vested pursuant to this Award, there shall be no restrictions on the transfer of the Vested Shares other than those restrictions imposed by any Applicable Laws.  

(b) The restrictions contained in this Section will not apply with respect to transfers of the Restricted Shares pursuant to the laws of descent and distribution governing the state in which the Participant is domiciled at the time of the Participant’s death; provided that the restrictions contained in this Section will continue to be applicable to the Restricted Shares after any such transfer; and provided further that the transferee(s) of such Restricted Shares must agree in writing to be bound by the provisions of this Award.

6. Changes in Capitalization.

        (a) The number of Restricted Shares shall be proportionately adjusted from and after the record date for any nonreciprocal transaction between the Company and the holders of capital stock of the Company that causes the per share value of the shares of Common Stock underlying the Award to change (an “Equity Restructuring”), such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, nonrecurring cash dividend.
        
(b) In the case of any reclassification or change of outstanding Common Stock issuable upon vesting of the Award, or in the case of any consolidation or merger of the Company with or into another entity (other than a merger in which the Company is the surviving entity and which does not result in any reclassification or change in the then-outstanding Stock) or in the case of any sale or conveyance to another entity of the property of the Company as an entirety or substantially as an entirety, in each case that is not an Equity Restructuring, then, as a condition of such reclassification, change, consolidation, merger, sale or conveyance, the Company or such successor or purchasing entity, as the case may be, shall make lawful and adequate provision whereby the Participant shall thereafter have the right, on exercise of the Award, to receive the kind and amount of securities, property and/or cash receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of securities issuable upon vesting of the Award immediately before such reclassification, change, consolidation, merger, sale or conveyance. Such provision shall include adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in Subsection (a). Notwithstanding the foregoing, if such a transaction occurs, in lieu of causing such rights to be substituted for the Award, the Committee may, upon 20 days’ prior written notice to the Participant, in its sole discretion: (i) shorten the period during which the Award vests, provided it vests not more than 20 days after the date the notice is given, or (ii) cancel the Award upon payment to the Participant in cash, with respect to the Award, of an amount which, in the sole discretion of the Committee, 
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is determined to be equivalent to the amount, if any, by which the Fair Market Value (at the effective time of the transaction) of the consideration that the Participant would have received if the Award had been vested before the effective time. The actions described in this Subsection (b) may be taken without regard to any resulting tax consequences to the Participant. Any determination made by the Committee pursuant to this Subsection (b) will be final and binding on the Participant.  Any action taken by the Committee need not treat all Participants under the Plan similarly.
        
(c) The existence of the Plan and this Award shall not affect in any way the right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its business or assets, or any other corporate act or proceeding.

        7. Compliance With Laws.  The Plan, the granting and vesting of this Award under the Plan, the issuance and delivery of the Restricted Shares, and the payment of money or other consideration allowable under the Plan or this Award are subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities laws and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Committee, the Board or the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Committee, the Board or the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan and this Award shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. Nothing in the Plan or in this Award shall require the Company to issue any Stock with respect to the Award if, in the opinion of counsel for the Company, that issuance could constitute a violation of any Applicable Laws. As a condition to the grant or exercise of the Award, the Company may require the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives, heirs, legatees or distributees) to provide written representations concerning the Participant’s (or such other person’s) intentions with regard to the retention or disposition of the Restricted Shares and written covenants as to the manner of disposal of such Stock as may be necessary or useful to ensure that the grant, exercise or disposition thereof will not violate the Securities Act, any other law or any rule of any applicable securities exchange or securities association then in effect. The Company shall not be required to register any Stock under the Securities Act or register or qualify any Stock under any state or other securities laws.

8. Legend on Stock Certificates. Certificates evidencing the Restricted Shares, if issued, may have the following legend and statements of other applicable restrictions endorsed thereon:

THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE LAWS. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE SOLE DISCRETION OF THE ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT VIOLATE ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS.

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This legend shall not be required for any shares of Stock issued pursuant to an effective registration statement under the Securities Act.  Certificates evidencing the Restricted Shares, to the extent appropriate at the time, shall also have noted conspicuously on the certificates a legend intended to give all persons full notice of the existence of any other conditions, restrictions, rights and obligations set forth in this Award and in the Plan. 

Instead of the foregoing legend, the certificate may state that the Company will furnish a full statement about certain restrictions on transferability to a stockholder on request and without charge. Such statement shall also be sent on request and without charge to stockholders who are issued shares without a certificate.
          
9. Governing Laws.  This Award shall be construed, administered and enforced according to the laws of the State of Maryland; provided, however, no Restricted Shares shall be issued except, in the reasonable judgment of the Company, in compliance with exemptions under applicable state securities laws of the state in which the Participant resides, and/or any other applicable securities laws.

10. Successors.  This Award shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and permitted assigns of the parties.

11. Notice.  Except as otherwise specified herein, all notices and other communications under this Award shall be in writing and shall be deemed to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the recipient.  Any party may designate any other address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein.

12. Severability.  In the event that any one or more of the provisions or portion thereof contained in this Award shall for any reason be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Award, and this Award shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein.

13. Entire Agreement.  Subject to the terms and conditions of the Plan, this Award expresses the entire understanding and agreement of the parties.  This Award may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

14. Violation.  Except as provided in Section 5, any transfer, pledge, sale, assignment, or hypothecation of the Award or any portion thereof shall be a violation of the terms of this Award and shall be void and without effect.

15. Headings.  Paragraph headings used herein are for convenience of reference only and shall not be considered in construing this Award.  

16. Specific Performance.  In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Award, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

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17. No Right to Continued Service.  Neither the establishment of the Plan nor the award of Restricted Shares hereunder shall be construed as giving the Participant the right to continue as a director with the Company.

18. Special Definitions.  As used in this Award,

(a) “Liquidation Event” means any one of the following events which may occur after the Grant Date:

(1) the dissolution or liquidation of the Company; 

(2) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity; 

(3) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction; 

(4) the sale of all or a majority of the outstanding capital stock of the Company to an unrelated person or entity; or 

(5) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding voting power of the successor entity immediately upon completion of the transaction; provided, however, that a Liquidation Event shall not include any transaction where the holders of capital stock of the Company do not receive consideration with respect to their shares of capital stock of the Company in such transaction and such shares of capital stock of the Company remain outstanding after the consummation of such transaction.

Notwithstanding the foregoing, no Liquidation Event shall be deemed to have occurred with respect to the Participant by reason of any actions or events in which the Participant participates in a capacity other than in the Participant’s capacity as a director of the Company or as a stockholder of the Company solely exercising the Participant’s voting or tendering rights.

(b) Other capitalized terms that are not defined herein have the meaning set forth in the Plan, except where the context does not reasonably permit.

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EXHIBIT 1

IRREVOCABLE STOCK POWER

The undersigned hereby assigns and transfers to Griffin Capital Essential Asset REIT, Inc. (the “Company”), 8,055 shares of the Common Stock of the Company registered in the name of the undersigned on the stock transfer records of the Company; and the undersigned does hereby irrevocably constitute and appoint Javier F. Bitar, his attorney-in-fact, to transfer the aforesaid shares on the books of the Company, with full power of substitution; and the undersigned does hereby ratify and confirm all that said attorney-in-fact lawfully shall do by virtue hereof.

															
	Date:			Signed:	
					
				Print Name:  	
					

									
	IN THE PRESENCE OF:		
			
			
	(Print Name)		
			
			
	(Signature)
		
			

6exhibit10a

                                                Exhibit 10 (a)                                                CONFORMED COPY                        DATED 13 MAY 2020    WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC,  WESTERN POWER DISTRIBUTION (WEST MIDLANDS) PLC,  WESTERN POWER DISTRIBUTION (SOUTH WEST) PLC and   WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC                   AS THE BORROWERS                    MIZUHO BANK, LTD.                           and           NATIONAL WESTMINSTER BANK PLC                 AS JOINT COORDINATORS                    HSBC UK BANK PLC,                    LLOYDS BANK PLC,                   MIZUHO BANK, LTD.,            NATIONAL WESTMINSTER BANK PLC,                ROYAL BANK OF CANADA,                  BARCLAYS BANK PLC                           and                   SANTANDER UK PLC   AS BOOKRUNNERS AND MANDATED LEAD ARRANGERS                     MUFG BANK, LTD.               AS MANDATED LEAD ARRANGER                            and                     LLOYDS BANK PLC                   AS FACILITY AGENT           £845,000,000 MULTICURRENCY REVOLVING                 FACILITIES AGREEMENT                          99 Bishopsgate                      London EC2M 3XF                        United Kingdom                     Tel: +44.20.7710.1000                        www.lw.com 

 

                                  CONTENTS   Clause                                                                    Page   1. Interpretation .............................................................................................................................. 1  2. The Facilities ............................................................................................................................ 24  3. Purpose ..................................................................................................................................... 26  4. Conditions Precedent ............................................................................................................... 26  5. Utilisation ................................................................................................................................. 28  6. Extension Option ...................................................................................................................... 29  7. Optional Currencies ................................................................................................................. 30  8. Repayment ............................................................................................................................... 31  9. Prepayment and Cancellation ................................................................................................... 32  10. Interest ...................................................................................................................................... 35  11. Terms ....................................................................................................................................... 36  12.   Changes to the Calculation of Interest ..................................................................................... 36  13.   Tax Gross-Up and Indemnities ................................................................................................ 38  14. Increased Costs ........................................................................................................................ 46  15. Mitigation ................................................................................................................................. 47  16. Payment Mechanics ................................................................................................................. 49  17. Representations ........................................................................................................................ 52  18. Information Covenants ............................................................................................................. 56  19. Financial Covenants ................................................................................................................. 59  20. General Covenants ................................................................................................................... 61  21. Default ...................................................................................................................................... 68  22.   Role of the Facility Agent, the Arranger and the Reference Banks ......................................... 72  23. Evidence and Calculations ....................................................................................................... 81  24. Fees .......................................................................................................................................... 81  25.   Indemnities and Break Costs .................................................................................................... 82  26. Expenses ................................................................................................................................... 84  27. Amendments and Waivers ....................................................................................................... 84  28.   Changes to the Borrowers ........................................................................................................ 89  29.   Changes to the Lenders ............................................................................................................ 89  30.   Confidentiality and Disclosure of Information ........................................................................ 95  31.   Confidentiality of Funding Rates and Reference Bank Quotations ......................................... 98  32. Set-Off ...................................................................................................................................... 99  33. Pro Rata Sharing .................................................................................................................... 100  34. Severability ............................................................................................................................ 101  35. Counterparts ........................................................................................................................... 101  36. Notices ................................................................................................................................... 101  37. Language ................................................................................................................................ 104  38. Governing Law ...................................................................................................................... 104  39. Enforcement ........................................................................................................................... 104  40.   Contractual recognition of bail-in .......................................................................................... 104  Schedule 1 Original Parties ................................................................................................................. 106  Schedule 2 Conditions Precedent Documents .................................................................................... 107  Schedule 3 Requests ........................................................................................................................... 108  Schedule 4 Form Of Transfer Certificate ............................................................................................ 109  Schedule 5 Form Of Assignment Agreement ..................................................................................... 112  Schedule 6 Form Of Compliance Certificate ...................................................................................... 115  Schedule 7 Form Of Increase Confirmation ....................................................................................... 116  Schedule 8 Timetables ........................................................................................................................ 119  Schedule 9 Form Of Subordination Deed ........................................................................................... 120                                             i   

 

                                                              CONFORMED COPY   THIS AGREEMENT is dated 13 May 2020.   BETWEEN:   (1)   (a) WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC (registered number        02366923) (“WPDEM”); (b) WESTERN POWER DISTRIBUTION (WEST        MIDLANDS) PLC (registered number 03600574) (“WPDWM”); (c) WESTERN POWER        DISTRIBUTION (SOUTH WEST) PLC (registered number 02366894) (“WPDSW”); (d)        WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC (registered number        02366985) (“WPDSWa”) (each a “Borrower” and WPDSWa together with WPDEM,        WPDWM and WPDSW, the “Borrowers”)   (2)   MIZUHO BANK, LTD. and      NATIONAL WESTMINSTER BANK PLC as joint        coordinators (the “Joint Coordinators”);   (3)   BARCLAYS BANK PLC, HSBC UK BANK PLC, LLOYDS BANK PLC, MIZUHO        BANK, LTD.,   NATIONAL WESTMINSTER BANK PLC, ROYAL BANK OF        CANADA,  and SANTANDER UK PLC as bookrunners and mandated lead arrangers (the        “Bookrunners”);   (4)   MUFG BANK, LTD. as mandated lead arranger (and together with the Bookrunners, the        “Arrangers”);   (5)   THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Parties) as original        lenders (the “Original Lenders”); and   (6)   LLOYDS BANK PLC as facility agent (the “Facility Agent”).   IT IS AGREED as follows:   1.    INTERPRETATION   1.1   Definitions         In this Agreement:         “Acceptable Bank” means:         (a)   a Lender (which is not a Defaulting Lender);         (b)   a bank or financial institution which has a rating for its long-term unsecured and non              credit-enhanced debt obligations of A- or higher by Standard & Poor’s Rating Services              or A- or higher by Fitch Ratings Ltd or A3 or higher by Moody’s Investor Services              Limited or a comparable rating from an internationally recognised credit rating agency;              or         (c)   any other bank or financial institution approved by the Facility Agent (acting              reasonably).         “Acceptable Jurisdiction” means:         (a)   the United States of America;         (b)   the United Kingdom; or         (c)   any other member state of the European Union or any Participating Member State              where such country has long term sovereign credit rating of A- or higher by Standard                                            

 

      & Poor’s Rating Services or A3 or higher from Moody’s Investor Services Limited or        A- or higher from Fitch Ratings Ltd.   “Act” means the Electricity Act 1989 and, unless the context otherwise requires, all subordinate  legislation made pursuant thereto.   “Administrative Party” means an Arranger or the Facility Agent.   “Affiliate” means a Subsidiary or a Holding Company of a person or any other Subsidiary of  that Holding Company. Notwithstanding the foregoing, in relation to National Westminster  Bank plc, the term “Affiliate” shall not include (i) the UK government or any member or  instrumentality thereof, including Her Majesty’s Treasury and UK Financial Investments  Limited (or any directors, officers, employees or entities thereof) or (ii) any persons or entities  controlled by or under common control with the UK government or any member or  instrumentality thereof (including Her Majesty’s Treasury and UK Financial Investments  Limited) and which are not part of The Royal Bank of Scotland Group plc and its subsidiaries  or subsidiary undertakings.   “Agent’s Spot Rate of Exchange” means:   (a)   the Facility Agent’s spot rate of exchange: or   (b)   (if the Facility Agent does not have an available spot rate of exchange) any other        publicly available spot rate of exchange selected by the Facility Agent (acting        reasonably),   for the purchase of the relevant currency with the Base Currency in the London foreign  exchange market at or about 11.00 a.m. on a particular day.   “Applicable Accounting Principles” means those accounting principles, standards and  practices generally accepted in the United Kingdom and the accounting and reporting  requirements of the Companies Act 2006, in each case as used in the Original Financial  Statements.   “Article 55 BRRD” means Article 55 of Directive 2014/59/EU establishing a framework for  the recovery and resolution of credit institutions and investment firms.   “Assignment Agreement” means an agreement substantially in the form set out in Schedule 5  (Form of Assignment Agreement) or any other form agreed between the relevant assignor and  assignee.   “Authority” means The Gas and Electricity Markets Authority established under Section 1 of  the Utilities Act 2000.   “Available Commitment” means a Lender’s Commitment minus:   (a)   the Base Currency Amount of its participation in any outstanding Loans; and   (b)   in relation to any proposed Loans, the Base Currency Amount of its participation in any        Loans that are due to be made on or before the proposed Drawdown Date,   other than that Lender’s participation in any Loans that are due to be repaid or prepaid on or  before the proposed Drawdown Date.   “Availability Period” means the period from and including the date of this Agreement to and  including the date falling one month prior to the Final Maturity Date.                                     2 

 

“Available Facility” means the aggregate for the time being of each Lender’s Available  Commitment.   “Bail-In Action” means the exercise of any Write-down and Conversion Powers.   “Bail-In Legislation” means:   (a)   in relation to an EEA Member Country which has implemented, or which at any time        implements, Article 55 BRRD, the relevant implementing law or regulation as        described in the EU Bail-In Legislation Schedule from time to time; and    (b)   in relation to any state other than such an EEA Member Country or (to the extent that        the United Kingdom is not such an EEA Member Country) the United Kingdom, any        analogous law or regulation from time to time which requires contractual recognition        of any Write-down and Conversion Powers contained in that law or regulation.   “Balancing and Settlement Code” means the document, as modified from time to time, setting  out the electricity balancing and settlement arrangements designated by the Secretary of State  and adopted by The National Grid Company plc (Registered No. 2366977) or its successor  pursuant to its transmission licence.   “Balancing and Settlement Code Framework Agreement” means the agreement of that title,  in the form approved by the Secretary of State, as amended from time to time, to which each  Borrower is a party and by which the Balancing and Settlement Code is made binding upon  each Borrower.   “Bank Levy” means any amount payable by any Finance Party or any of its Affiliates on the  basis of, or in relation to, its balance sheet or capital base or any part of that person or its  liabilities or minimum regulatory capital or any combination thereof, including, without  limitation, the UK bank levy as set out in the Finance Act 2011, the French taxe bancaire de  risque systémique as set out in Article 235 ter ZE of the French Code Général des impôts, the  German bank levy as set out in the German Restructuring Fund Act 2010  (Restrukturierungsfondsgesetz) (as amended), the Dutch bankenbelasting as set out in the bank  levy act (Wet bankenbelasting), the Swedish bank levy as set out in the Swedish Act on State  Support to Credit Institutions (Sw. lag (2008:814) (lag om statligt stöd till kreditinstitut)), or  the Spanish bank levy (Impuesto sobre los Depósitos en las Entidades de Crédito) as set out in  the Law 16/2012 of 27 December 2012.   “Base Currency” means Sterling.   “Base Currency Amount” means in relation to a Loan, the amount specified in the Request  delivered by a Borrower for that Loan (or, if the amount requested is not denominated in the  Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of  Exchange on the date which is three Business Days before the Drawdown Date or, if later, on  the date the Facility Agent receives the Request) as adjusted to reflect any repayment or  prepayment of a Loan.   “Basel III” means:   (a)   the agreements on capital requirements, a leverage ratio and liquidity standards        contained in “Basel III: A global regulatory framework for more resilient banks and        banking systems”, “Basel III: International framework for liquidity risk measurement,        standards and monitoring” and “Guidance for national authorities operating the        countercyclical capital buffer” published by the Basel Committee on Banking        Supervision in December 2010, each as amended, supplemented or restated;                                     3 

 

(b)   the rules for global systematically important banks contained in “Global systematically        important banks: assessment methodology and the additional loss absorbency        requirement — Rules text” published by the Basel Committee on Banking Supervision        in November 2011, as amended, supplemented or restated; and   (c)   any further guidance or standards published by the Basel Committee on Banking        Supervision relating to “Basel III”.   “Borrower Group” means, in respect of a Borrower, that Borrower and its Subsidiaries (if  any).   “Break Costs” means the amount (if any), calculated in accordance with Clause 25.4 (Break  Costs), which a Lender is entitled to receive under this Agreement as compensation if any part  of a Loan or overdue amount is prepaid.   “Business Day” means a day (other than a Saturday or a Sunday) on which commercial banks  are open in London and:   (a)   if on that day a payment in or a purchase of a currency (other than euro) is to be made,        the principal financial centre of the country of that currency; or   (b)   if on that day a payment in or purchase of euro is to be made, which is also a TARGET        Day.   “Code” means the US Internal Revenue Code of 1986.   “Commitment” means a Facility A Commitment, Facility B Commitment, Facility C  Commitment or Facility D Commitment.   “Compliance Certificate” means a certificate substantially in the form of Schedule 5 (Form of  Compliance Certificate) setting out, among other things, calculations of the financial covenants  or as otherwise agreed between the relevant Borrower and the Facility Agent.   “Confidential Information” means all information relating to each Borrower, each Borrower  Group, the Finance Documents or each Facility of which a Finance Party becomes aware in its  capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance  Party in relation to, or for the purpose of becoming a Finance Party under, the Finance  Documents or a Facility from either:   (a)   any member of a Borrower Group or any of its advisers; or   (b)   another Finance Party, if the information was obtained by that Finance Party directly        or indirectly from any member of a Borrower Group or any of its advisers,   in whatever form, and includes information given orally and any document, electronic file or  any other way of representing or recording information which contains or is derived or copied  from such information but excludes:         (i)   information that:               (A)    is or becomes public information other than as a direct or indirect result                     of any breach by that Finance Party of Clause 30 (Confidentiality and                     disclosure of information), or               (B)    is identified in writing at the time of delivery as non-confidential by                     any member of a Borrower Group or any of its advisers; or                                     4 

 

            (C)    is known by that Finance Party before the date the information is                     disclosed to it in accordance with paragraphs (a) or (b) above or is                     lawfully obtained by that Finance Party after that date, from a source                     which is, as far as that Finance Party is aware, unconnected with a                     Borrower Group and which, in either case, as far as that Finance Party                     is aware, has not been obtained in breach of, and is not otherwise                     subject to, any obligation of confidentiality; and         (ii)  any Funding Rate or Reference Bank Quotation.   “Confidentiality Undertaking” means a confidentiality undertaking substantially in a  recommended form of the LMA or in any other form agreed between a Borrower and the  Facility Agent.   “Contribution Notice” means a contribution notice issued by the Pensions Regulator under  section 38 or section 47 of the Pensions Act 2004.   “CRD IV” means:   (a)   Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26        June 2013 on prudential requirements for credit institutions and investment firms; and   (b)   Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013        on access to the activity of credit institutions and the prudential supervision of credit        institutions and investment firms.   “CTA” means the Corporation Tax Act 2009.   “Debt Purchase Transaction” means, in relation to a person, a transaction where such person:   (a)   purchases by way of assignment or transfer;   (b)   enters into any sub-participation in respect of; or   (c)   enters into any other agreement or arrangement having an economic effect substantially        similar to a sub-participation in respect of,   any Commitment or amount outstanding under this Agreement.   “Default” means:   (a)   an Event of Default; or   (b)   an event specified in Clause 21 (Default) which would be (with the lapse of time, the        expiry of a grace period, the giving of notice or the making of any determination under        the Finance Documents or any combination of them) an Event of Default.   “Defaulting Lender” means any Lender:   (a)   which has failed to make its participation in a Loan available or has notified the Facility        Agent that it will not make its participation in a Loan available by the Drawdown Date        of that Loan in accordance with Clause 5.4 (Advance of Loan);   (b)   which has otherwise rescinded or repudiated a Finance Document; or   (c)   with respect to which an Insolvency Event has occurred and is continuing,                                     5 

 

unless, in the case of paragraph (a) above:         (i)   its failure to pay is caused by:               (A)    administrative or technical error; or               (B)    a Disruption Event,               and payment is made within 5 Business Days of its due date; or         (ii)  the Lender is disputing in good faith whether it is contractually obliged to make              the payment in question.   “Disruption Event” means either or both of:   (a)   a material disruption to those payment or communications systems or to those financial        markets which are, in each case, required to operate in order for payments to be made        in connection with the Finance Documents (or otherwise in order for the transactions        contemplated by the Finance Documents to be carried out) which disruption is not        caused by, and is beyond the control of, any of the Parties; or   (b)   the occurrence of any other event which results in a disruption (of a technical or        systems-related nature) to the treasury or payments operations of a Party preventing        that, or any other Party:          (i)   from performing its payment obligations under the Finance Documents; or         (ii)  from communicating with other Parties in accordance with the terms of the              Finance Documents,   and which (in either such case) is not caused by, and is beyond the control of, the Party whose  operations are disrupted.   “Dodd-Frank” means the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.  L. No. 111-203, 124 stat. 1376 (2010) and all requests, rules, guidelines or directives in  connection therewith.   “Drawdown Date” means each date on which a Loan is made.   “EEA Member Country” means any member state of the European Union, Iceland,  Liechtenstein and Norway.   “Environment” means humans, animals, plants and all other living organisms including the  ecological systems of which they form part and the following media:   (a)   air (including, without limitation, air within natural or man-made structures, whether        above or below ground);   (b)   water (including, without limitation, territorial, coastal and inland waters, water under        or within land and water in drains and sewers); and   (c)   land (including, without limitation, land under water).   “Environmental Claim” means any claim, proceeding, formal notice or investigation by any  person in respect of any Environmental Law.                                     6 

 

“Environmental Law” means any applicable law or regulation which relates to:   (a)   the pollution or protection of the Environment;   (b)   the conditions of the workplace; or   (c)   the generation, handling, storage, use, release or spillage of any substance which, alone        or in combination with any other, is capable of causing harm to the Environment,        including, without limitation, any waste.   “EU Bail-In Legislation Schedule” means the document described as such and published by  the LMA (or any successor person) from time to time.   “euro” or “euros” or “€” means the single currency of the Participating Member States.   “EURIBOR” means in relation to any Loan in euro:   (a)   the applicable Screen Rate as of the Specified Time for euro and for a period equal in        length to the Term of that Loan; or   (b)   as otherwise determined pursuant to Clause 12.1 (Unavailability of Screen Rate),    and if, in either case, that rate is less than zero, EURIBOR shall be deemed to be zero.   “Event of Default” means an event specified as such in this Agreement.    “Existing Facilities” means the multi-currency revolving credit facilities for WPDSW,  WPDEM and WPDWM, signed 4 April 2011 and 12 January 2012 between the relevant  Borrower and the lenders named therein, each as amended and restated on 29 July 2014.   “Facility” means Facility A, Facility B, Facility C or Facility D.   “Facility A” means the revolving credit facility made available under this Agreement as  described in sub-clause 2.1.1(a) of Clause 2 (The Facilities).   “Facility A Commitment” means:   (a)   in relation to an Original Lender, the amount in the Base Currency set opposite its name        under the heading “Facility A Commitment” in Schedule 1 (The Original Parties) and        the amount of any other Facility A Commitment transferred to it under this Agreement        or assumed by it in accordance with Clause 2.2 (Increase); and   (b)   in relation to any other Lender, the amount in the Base Currency of any Facility A        Commitment transferred to it under this Agreement or assumed by it in accordance with        Clause 2.2 (Increase),   to the extent not cancelled, reduced or transferred by it under this Agreement.   “Facility A Loan” means a loan made or to be made under Facility A or the principal amount  outstanding for the time being of that loan.   “Facility B” means the revolving credit facility made available under this Agreement as  described in sub-clause 2.1.1(b) of Clause 2 (The Facilities).   “Facility B Commitment” means:                                     7 

 

(a)   in relation to an Original Lender, the amount in the Base Currency set opposite its name        under the heading “Facility B Commitment” in Schedule 1 (The Original Parties) and        the amount of any other Facility B Commitment transferred to it under this Agreement        or assumed by it in accordance with Clause 2.2 (Increase); and   (b)   in relation to any other Lender, the amount in the Base Currency of any Facility B        Commitment transferred to it under this Agreement or assumed by it in accordance with        Clause 2.2 (Increase),   to the extent not cancelled, reduced or transferred by it under this Agreement.   “Facility B Loan” means a loan made or to be made under Facility B or the principal amount  outstanding for the time being of that loan.   “Facility C” means the revolving credit facility made available under this Agreement as  described in sub-clause 2.1.1(c) of Clause 2 (The Facilities).   “Facility C Commitment” means:   (a)   in relation to an Original Lender, the amount in the Base Currency set opposite its name        under the heading “Facility C Commitment” in Schedule 1 (The Original Parties) and        the amount of any other Facility C Commitment transferred to it under this Agreement        or assumed by it in accordance with Clause 2.2 (Increase); and   (b)   in relation to any other Lender, the amount in the Base Currency of any Facility C        Commitment transferred to it under this Agreement or assumed by it in accordance with        Clause 2.2 (Increase),   to the extent not cancelled, reduced or transferred by it under this Agreement.   “Facility C Loan” means a loan made or to be made under Facility C or the principal amount  outstanding for the time being of that loan.   “Facility D” means the revolving credit facility made available under this Agreement as  described in sub-clause 2.1.1(d) of Clause 2 (The Facilities).   “Facility D Commitment” means:   (a)   in relation to an Original Lender, the amount in the Base Currency set opposite its name        under the heading “Facility D Commitment” in Schedule 1 (The Original Parties) and        the amount of any other Facility D Commitment transferred to it under this Agreement        or assumed by it in accordance with Clause 2.2 (Increase); and   (b)   in relation to any other Lender, the amount in the Base Currency of any Facility D        Commitment transferred to it under this Agreement or assumed by it in accordance with        Clause 2.2 (Increase),   to the extent not cancelled, reduced or transferred by it under this Agreement.   “Facility D Loan” means a loan made or to be made under Facility D or the principal amount  outstanding for the time being of that loan.   “Facility Office” means the office(s) notified by a Lender to the Facility Agent in writing:   (a)   on or before the date it becomes a Lender; or   (b)   by not less than five Business Days’ notice,                                     8 

 

as the office(s) through which it will perform its obligations under this Agreement.   “Fallback Term” means one month.   “FATCA” means:   (a)   sections 1471 to 1474 of the Code or any associated regulations;   (b)   any treaty, law or regulation of any other jurisdiction, or relating to an        intergovernmental agreement between the US and any other jurisdiction, which (in        either case) facilitates the implementation of any law or regulation referred to in        paragraph (a) above; or   (c)   any agreement pursuant to the implementation of any treaty, law or regulation referred        to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US        government or any governmental or taxation authority in any other jurisdiction.   “FATCA Application Date” means:   (a)   in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code        (which relates to payments of interest and certain other payments from sources within        the US), 1 July 2014; or   (b)   in relation to a “passthru payment” described in section 1471(d)(7) of the Code not        falling within paragraph (a) above, the first date from which such payment may become        subject to a deduction or withholding required by FATCA.   “FATCA Deduction” means a deduction or withholding from a payment under a Finance  Document required by FATCA.   “FATCA Exempt Party” means a Party that is entitled to receive payments free from any  FATCA Deduction.   “Fee Letter” means:   (a)   any letter entered into by reference to a Facility between one or more Administrative        Parties and the Borrowers setting out the amount of certain fees referred to in the        Agreement; and   (b)   any agreement setting out fees payable to a Finance Party referred to in Clause 24        (Fees) of this Agreement or under any other Finance Document.   “Final Maturity Date” means, in relation to each Facility, subject to Clause 6 (Extension  Option), the third anniversary of the Signing Date.   “Finance Document” means:   (a)   this Agreement;   (b)   a Fee Letter;   (c)   a Transfer Certificate; or   (d)   any other document designated as such by the Facility Agent and the Borrowers.   “Finance Party” means a Lender or an Administrative Party.                                      9 

 

“Financial Indebtedness” means any indebtedness for or in respect of:   (a)   moneys borrowed;   (b)   any acceptance credit;    (c)   any bond, note, debenture, loan stock or other similar instrument;    (d)   any redeemable preference share;   (e)   any finance or capital lease;   (f)   receivables sold or discounted (otherwise than on a non-recourse basis);   (g)   the acquisition cost of any asset to the extent payable after its acquisition or possession        by the party liable where the deferred payment is arranged primarily as a method of        raising finance or financing the acquisition of that asset;   (h)   any derivative transaction protecting against or benefiting from fluctuations in any rate        or price (and, except for non-payment of an amount, the then mark to market value of        the derivative transaction will be used to calculate its amount);   (i)   any other transaction (including any forward sale or purchase agreement) which has the        commercial effect of a borrowing;   (j)   any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter        of credit or any other instrument issued by a bank or financial institution; or   (k)   any guarantee, indemnity or similar assurance against financial loss of any person in        respect of any item referred to in paragraphs (a) to (j) above.   “Financial Support Direction” means a financial support direction issued by the Pensions  Regulator under section 43 of the Pensions Act 2004.   “Funding Rate” means any individual rate notified by a Lender to the Facility Agent pursuant  to paragraph 12.4.1(b) of Clause 12.4 (Cost of funds).   “Historic Screen Rate” means, in relation to any Loan, the most recent applicable Screen Rate  for the currency of that Loan and for a period equal in length to the Term of that Loan and  which is as of a day which is no more than three days before the Quotation Day.   “Holding Company” means in relation to a person, any other person in respect of which it is a  Subsidiary.   “Impaired Agent” means the Facility Agent at any time when;   (a)   it has failed to make (or has notified a Party that it will not make) a payment required        to be made by it under the Finance Documents by the due date for payment;   (b)   the Facility Agent otherwise rescinds or repudiates a Finance Document;   (c)   (if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or        (b) of the definition of “Defaulting Lender”; or   (d)   an Insolvency Event has occurred and is continuing with respect to the Facility Agent;                                    10 

 

unless, in the case of paragraph (a) above;         (i)   its failure to pay is caused by:               (A)    administrative or technical error; or               (B)    a Disruption Event,               and payment is made within 5 Business Days of its due date; or         (ii)  the Facility Agent is disputing in good faith whether it is contractually obliged              to make the payment in question.   “Increase Confirmation” means a confirmation substantially in the form set out in Schedule 7  (Form of Increase Confirmation).   “Increase Lender” has the meaning given to that term in Clause 2.2.1 (Increase).    “Increased Cost” means:   (a)   an additional or increased cost;   (b)   a reduction in the rate of return from a Facility or under a Finance Document or on a        Finance Party’s (or its Affiliate’s) overall capital; or   (c)   a reduction of an amount due and payable under any Finance Document,   which is incurred or suffered by a Finance Party or any of its Affiliates but only to the extent  attributable to that Finance Party having entered into its Commitments or funding or performing  its obligations under any Finance Document.   “Insolvency Event” in relation to a Finance Party means that the Finance Party:   (a)   is dissolved (other than pursuant to a consolidation, amalgamation or merger);   (b)   becomes insolvent or is unable to pay its debts or fails or admits in writing its inability        generally to pay its debts as they become due;   (c)   makes a general assignment, arrangement or composition with or for the benefit of its        creditors;   (d)   institutes or has instituted against it, by a regulator, supervisor or any similar official        with primary insolvency, rehabilitative or regulatory jurisdiction over it in the        jurisdiction of its incorporation or organisation or the jurisdiction of its head or home        office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief        under any bankruptcy or insolvency law or other similar law affecting creditors’ rights,        or a petition is presented for its winding up or liquidation by it or such regulator,        supervisor or similar official;   (e)   has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy        or any other relief under any bankruptcy or insolvency law or other similar law affecting        creditors’ rights, or a petition is presented for its winding up or liquidation, and, in the        case of any such proceeding or petition instituted or presented against it, such                                    11 

 

      proceeding or petition is instituted or presented by a person or entity not described in        paragraph (d) above and:         (i)   results in a judgment of insolvency or bankruptcy or the entry of an order for              relief or the making of an order for its winding up or liquidation; or         (ii)  is not dismissed, discharged, stayed or restrained in each case within 30 days              of the institution or presentation thereof;   (f)   has a resolution passed for its winding up, official management or liquidation (other        than pursuant to a consolidation, amalgamation or merger);   (g)   seeks or becomes subject to the appointment of an administrator, provisional liquidator,        conservator, receiver, trustee, custodian or other similar official for it or for all or        substantially all its assets;   (h)   has a secured party take possession of all or substantially all its assets or has a distress,        execution, attachment, sequestration or other legal process levied, enforced or sued on        or against all or substantially all its assets and such secured party maintains possession,        or any such process is not dismissed, discharged, stayed or restrained, in each case        within 30 days thereafter;   (i)   causes or is subject to any event with respect to it which, under the applicable laws of        any jurisdiction, has an analogous effect to any of the events specified in paragraphs        (a) to (h) above; or   (j)   takes any action in furtherance of, or indicating its consent to, approval of, or        acquiescence in, any of the foregoing acts.   “Interpolated Historic Screen Rate” means, in relation to any Loan, the rate (rounded to the  same number of decimal places as the two relevant Screen Rates) which results from  interpolating on a linear basis between:   (a)   the most recent applicable Screen Rate for the longest period (for which that Screen        Rate is available) which is less than the Term of that Loan; and   (b)   the most recent applicable Screen Rate for the shortest period (for which that Screen        Rate is available) which exceeds the Term of that Loan,    each for the currency of that Loan and each of which is as of a day which is no more than three  days before the Quotation Day.   “Interpolated Screen Rate” means, in relation to any Loan, the rate (rounded to the same  number of decimal places as the two relevant Screen Rates) which results from interpolating on  a linear basis between:   (a)   the applicable Screen Rate for the longest period (for which that Screen Rate is        available) which is less than the Term of that Loan; and   (b)   the applicable Screen Rate for the shortest period (for which that Screen Rate is        available) which exceeds the Term of that Loan,   each as of the Specified Time for the currency of that Loan.   “ITA” means the Income Tax Act 2007.                                    12 

 

“Legal Reservations” means:   (a)   the principle that equitable remedies may be granted or refused at the discretion of a        court and the limitation of enforcement by laws relating to insolvency, reorganisation        and other laws generally affecting the rights of creditors;   (b)   the time barring of claims under the Limitation Act 1980 and the Foreign Limitation        Periods Act 1984, the possibility that an undertaking to assume liability for or        indemnify a person against non-payment of UK stamp duty may be void and defences        of set-off or counterclaim;   (c)   similar principles, rights and defences under the laws of any jurisdiction in which a        member of a Borrower Group or a Holding Company of a Borrower is incorporated;        and    (d)   any other matters which are set out as qualifications or reservations as to matters of law        of general application in any legal opinion provided under Schedule 2 (Conditions        Precedent Documents).   “Lender” means:   (a)   an Original Lender; or   (b)   any person which becomes a Lender after the date of this Agreement in accordance        with Clause 2.2 (Increase) or Clause 29 (Changes to the Lenders),   which in each case has not ceased to be a Lender in accordance with the terms of this  Agreement.   “LIBOR” means, in relation to any Loan (other than a Loan denominated in euro):   (a)   the applicable Screen Rate as of the Specified Time for the currency of that Loan and        for a period equal in length to the Term of that Loan; or   (b)   as otherwise determined pursuant to Clause 12.1 (Unavailability of Screen Rate),   and if, in either case, that rate is less than zero, LIBOR shall be deemed to be zero.   “Licence” means:   (a)   the electricity distribution licence made and treated as granted to the Borrowers under        Section 6(1)(c) of the Act pursuant to a licensing scheme made by the Secretary of State        under Part II of Schedule 7 to the Utilities Act 2000 on 28 September, 2001; or   (b)   any statutory amendment or replacement licence or licences granted pursuant to the        Utilities Act 2000 which permit each Borrower to distribute electricity in the area it is        certified to operate in.   “LMA” means the Loan Market Association.   “Loan” means a Facility A Loan, Facility B Loan, Facility C Loan or Facility D Loan.   “Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than  662⁄3 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to                                    13 

 

zero, aggregated more than 662⁄3 per cent. of the Total Commitments immediately prior to the  reduction).   “Margin” means, provided that:   (a)   at least one of Fitch Ratings Ltd (“Fitch”), Moody’s Investor Services Limited        (“Moody’s”) and Standard & Poor’s Ratings Services (“Standard & Poor’s”) has        provided a current rating in respect of the long-term, unsecured and non        credit-enhanced debt obligations of a Borrower; and   (b)   no Event of Default is outstanding,   the rate set out in the table below:    Rating (Moody’s)        Rating (Standard Poor’s /  & Margin (per annum)                           Fitch)   Lower than Baa3         Lower than BBB-                  1.00%   Baa3                    BBB-                             0.80%   Baa2 BBB                                                 0.65%   Baal BBB+                                                0.55%   A3                      A-                               0.45%   A2 or higher A or higher 0.35%  If:   (a)   the current Fitch, Moody’s and Standard & Poor’s ratings in respect of a Borrower        imply different Margin rates, the Margin shall be the average of the three Margin rates        implied;   (b)   only two of Fitch, Moody’s and Standard & Poor’s provides a rating in respect of the        long term, unsecured and non credit-enhanced debt obligations of a Borrower, the        Margin shall be the average of the two Margin rates implied;   (c)   only one of Fitch, Moody’s and Standard & Poor’s provides a rating in respect of the        long-term, unsecured and non credit-enhanced debt obligations of a Borrower, that        rating alone shall be used to determine the applicable Margin; and   (d)   none of Fitch, Moody’s nor Standard & Poor’s provides a rating in respect of the        long-term, unsecured and non credit-enhanced debt obligations of a Borrower, or if an        Event of Default is outstanding, the applicable Margin shall be 1.00% per annum.    Any increase or decrease in the Margin shall take effect on (i) three Business Days after the  date on which the Fitch, Moody’s and/or Standard & Poor’s rating in respect of the long-term,  unsecured and non credit-enhanced debt obligations of a Borrower is published or, as the case  may be, changed or withdrawn or (ii) where the Facility Agent receives notice from a Borrower  or otherwise becomes aware that an Event of Default has occurred or has ceased to be  outstanding, with effect from the date on which such Event of Default occurs or ceases to be  outstanding.   For the purposes of this definition, an Event of Default being “outstanding” means that it has  not been remedied (as evidenced by a Borrower to the Facility Agent (acting reasonably)) or  waived.   “Material Adverse Effect” means a material adverse effect on:   (a)   the business, assets or financial condition of a Borrower Group (taken as a whole);                                   14 

 

(b)   the ability of a Borrower to perform its payment obligations under the Finance        Documents or its obligations under Clauses 19.3 (Interest Cover) or 19.4 (Asset Cover)        of this Agreement; or   (c)   the validity or the enforceability of the Finance Documents or the rights or remedies of        any Finance Party under any of the Finance Documents.   “Material Subsidiary” means, at any time, a Subsidiary of a Borrower whose gross assets or  gross revenues (on a consolidated basis and excluding intra-Borrower Group items) then equal  or exceed 10 per cent. of the gross assets or gross revenues of the relevant Borrower Group.   For this purpose:   (a)   the gross assets or gross revenues of a Subsidiary of a Borrower will be determined        from its financial statements (consolidated if it has Subsidiaries) upon which the latest        audited financial statements of that Borrower Group have been based;   (b)   if a Subsidiary of a Borrower becomes a member of the relevant Borrower Group after        the date on which the latest audited financial statements of that Borrower Group have        been prepared, the gross assets or gross revenues of that Subsidiary will be determined        from its latest financial statements;   (c)   the gross assets or gross revenues of a Borrower Group will be determined from the        relevant Borrower’s latest audited financial statements, adjusted (where appropriate) to        reflect the gross assets or gross revenues of any company or business subsequently        acquired or disposed of; and   (d)   if a Material Subsidiary disposes of all or substantially all of its assets to another        Subsidiary of the relevant Borrower, it will immediately cease to be a Material        Subsidiary and the other Subsidiary (if it is not already) will immediately become a        Material Subsidiary; the subsequent financial statements of those Subsidiaries and that        Borrower Group will be used to determine whether those Subsidiaries are Material        Subsidiaries or not.   If there is a dispute as to whether or not a company is a Material Subsidiary, a certificate of the  auditors of the relevant Borrower will be, in the absence of manifest error, conclusive.   “Maturity Date” means the last day of the Term of a Loan.   “New Lender” has the meaning given to that term in Clause 29 (Changes to the Lenders).   “Non-Consenting Lender” means any Lender who does not and continues not to consent or  agree to a Borrower’s or the Facility Agent’s (at the request of the Borrowers) request to give  a consent in relation to, or agree to a waiver or amendment of, any provisions of the Finance  Documents where Lenders whose Commitments aggregate either:   (a)   in the case the consent, waiver or amendment in question requires the approval of all        the Lenders, Lenders whose Commitments aggregate more than 85% of the Total        Commitments (or, if the Total Commitments have been reduced to zero, aggregated        more than 85% of the Total Commitments prior to that reduction); or   (b)   in the case the consent, waiver or amendment in question requires the approval of the        Majority Lenders, Lenders whose Commitments aggregate more than 60% of the Total        Commitments (or, if the Total Commitments have been reduced to zero, aggregated        more than 60% of the Total Commitments prior to that reduction),                                    15 

 

have consented or agreed to such waiver or amendment.   “OFGEM” means the Office of Gas and Electricity Markets.   “Optional Currency” means any currency (other than the Base Currency) which complies with  the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).   “Original Financial Statements” means the audited consolidated financial statements of each  Borrower for the year ended 31 March 2019.   “Participating Member State” means a member state of the European Union that has the euro  as its lawful currency under the legislation of the European Union relating to Economic and  Monetary Union.   “Party” means a party to this Agreement.   “Pensions Regulator” means the body corporate called the Pensions Regulator established  under Part I of the Pensions Act 2004.   “PPL” means PPL Corporation, a company incorporated in Pennsylvania, U.S.A. whose head  office is in Two North Ninth Street, Allentown, PA18101, Pennsylvania, U.S.A., registered  number 2570936.   “Pre-approved Currency” means U.S.$ and euro.   “Pro Rata Share” means:   (a)   for the purpose of determining a Lender’s share in a Loan, the proportion which its        Available Commitment bears to the Available Facility, in respect of the relevant        Facility, immediately prior to making the Loan under that Facility; and   (b)   for any other purpose on a particular date:         (i)   the proportion which its aggregate Commitment bears to the Total              Commitments on that date; or         (ii)  if the Total Commitments have been cancelled, the proportion which its              aggregate Commitments bore to the Total Commitments immediately before              being cancelled.   “PUHCA” means the Public Utility Holding Company Act of 2005, as amended, of the United  States of America.   “Qualifying Lender” has the meaning given to such term in Clause 13.1 (Definitions).   “Quasi-Security Interest” has the meaning given to such term in Clause 20.5 (Negative  Pledge).   “Quotation Day” means, in relation to any period for which an interest rate is to be determined:   (a)   (if the currency is Sterling) the first day of that period;   (b)   (if the currency is euro) two TARGET Days before the first day of that period; or   (c)   (for any other currency) two Business Days before the first day of that period,                                    16 

 

unless market practice differs in the Relevant Market for that 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 Market (and if quotations for that currency and period would  normally be given on more than one day, the Quotation Day will be the last of those days).   “Reference Bank Quotation” means any quotation supplied to the Facility Agent by a  Reference Bank.   “Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four  decimal places) as supplied to the Facility Agent at its request by the Reference Banks:   (a)   in relation to LIBOR as either:         (i)   if:               (A)    the Reference Bank is a contributor to the applicable Screen Rate; and               (B)    it consists of a single figure,                the rate (applied to the relevant Reference Bank and the relevant currency and               period) which contributors to the applicable Screen Rate are asked to submit               to the relevant administrator; or         (ii)  in any other case, the rate at which the relevant Reference Bank could fund              itself in the relevant currency for the relevant period with reference to the              unsecured wholesale funding market; or   (b)   in relation to EURIBOR:         (i)   (other than where paragraph (ii) below applies) as the rate at which the relevant              Reference Bank believes one prime bank is quoting to another prime bank for              interbank term deposits in euro within the Participating Member States for the              relevant period; or          (ii)  if different, as the rate (if any and applied to the relevant Reference Bank and              the relevant period) which contributors to the applicable Screen Rate are asked              to submit to the relevant administrator.   “Reference Banks” means the principal London offices of such banks as may be appointed by  the Facility Agent in consultation with the Borrowers and with the consent of the bank so  appointed.   “Related Fund” in relation to a fund (the “first fund”), means a fund which is managed or  advised by the same investment manager or investment adviser as the first fund or, if it is  managed by a different investment manager or investment adviser, a fund whose investment  manager or investment adviser is an Affiliate of the investment manager or investment adviser  of the first fund.   “Relevant Market” means in relation to euro, the European interbank market and, in relation  to any other currency, the London interbank market.   “Repeating Representations” means each of the representations and warranties set out in  Clause 17.2  (Status) to Clause 17.8 (Financial Statements) (inclusive), Clause 17.10  (Litigation), Clause 17.12 (Non-Violation of other Agreements) and Clause 17.13 (Governing  law and enforcement).                                    17 

 

“Representative” means any delegate, agent, manager, administrator, nominee, attorney,  trustee or custodian.   “Request” means a request for a Loan, substantially in the form set out in Schedule 3  (Requests).   “Resolution Authority” means any body which has authority to exercise any Write-down and  Conversion Powers.   “Rollover Loan” means one or more Loans:   (a)   made or to be made on the same day that a maturing Loan is due to be repaid;   (b)   the aggregate amount of which is equal to or less than the amount of the maturing Loan;   (c)   in the same currency as the maturing Loan (unless it arose as a result of the operation        of Clause 7.2 (Revocation of a currency)), and   (d)   made or to be made to the same Borrower for the purpose of refinancing that maturing        Loan.   “Screen Rate” means:   (a)   in relation to LIBOR, the London interbank offered rate administered by ICE        Benchmark Administration Limited (or any other person which takes over the        administration of that rate) for the relevant currency and period displayed on pages        LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson        Reuters page which displays that rate); and   (b)   in relation to EURIBOR, the euro interbank offered rate administered by the European        Money Markets Institute (or any other person which takes over the administration of        that rate) for the relevant period displayed on page EURIBOR01 of the Thomson        Reuters screen (or any replacement Thomson Reuters page which displays that rate),   or, in each case, on the appropriate page of such other information service which publishes that  rate from time to time in place of Thomson Reuters. If such page or service ceases to be  available, the Facility Agent may specify another page or service displaying the relevant rate  after consultation with the Borrowers.   “Secretary of State” means the Secretary of State for Business, Innovation and Skills.   “Security Interest” means any mortgage, pledge, lien, charge, assignment, hypothecation or  security interest or any other agreement or arrangement having a similar effect.   “Signing Date” means the date of this Agreement.   “Specified Time” means a day or time determined in accordance with Schedule 8 (Timetables).   “Sterling” and “£” mean the lawful currency of the United Kingdom.   “Subordination Deed” means a document in the form set out in Schedule 9 (Form of  Subordination Deed) duly completed and executed by the parties thereto.   “Subsidiary” means:   (a)   a subsidiary within the meaning of section 1159 of the Companies Act 2006; and                                    18 

 

(b)   unless the context otherwise requires, a subsidiary undertaking within the meaning of        section 1162 of the Companies Act 2006.   “TARGET2” means the Trans-European Automated Real-time Gross Settlement Express  Transfer payment system which utilises a single platform and which was launched on 19  November 2007.   “TARGET Day” means any day on which TARGET2 is open for the settlement of payments  in euro.   “Tax” means any tax, levy, impost, duty or other charge 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, other than a FATCA Deduction.   “Taxes Act” means the Corporation Tax Act 2010.    “Tax Payment” means either an increase in a payment made by a Borrower to a Finance Party  under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity).   “Term” means, in respect of a Loan, each period determined under this Agreement by reference  to which interest on a Loan or an overdue amount is calculated.   “Total Commitments” means the aggregate of the Commitments being £845,000,000 at the  date of this Agreement.   “Transfer Certificate” means a certificate, substantially in the form of Schedule 4 (Form of  Transfer Certificate), with such amendments as the Facility Agent may approve or reasonably  require or any other form agreed between the Facility Agent and a Borrower.   “Transfer Date” means, in relation to a transfer, the later of:   (a)   the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer        Certificate; and   (b)   the date on which the Facility Agent executes the relevant Assignment Agreement or        Transfer Certificate.    “U.K.” means the United Kingdom of Great Britain and Northern Ireland.   “U.K. Bail-In Legislation” means (to the extent that the U.K. is not an EEA Member Country  which has implemented, or implements, Article 55 BRRD) Part I of the United Kingdom  Banking Act 2009 and any other law or regulation applicable in the U.K. relating to the  resolution of unsound or failing banks, investment firms or other financial institutions or their  affiliates (otherwise than through liquidation, administration or other insolvency proceedings).   “Unpaid Sum” means any sum due and payable but unpaid by a Borrower under the Finance  Documents.   “US” means the United States of America.   “US Dollars”, “U.S.$” and “U.S.D” means the lawful currency for the time being of the United  States of America.                                    19 

 

      “VAT” means:         (a)   any Tax charged in accordance with the UK Value Added Tax Act 1994, as may be              amended or substituted from time to time;         (b)   any tax imposed in compliance with the Council Directive of 28 November 2006 on              the common system of value added tax (EC Directive 2006/112); and         (c)   any other tax of a similar nature, whether imposed in a member state of the European              Union in substitution for, or levied in addition to, such tax referred to in paragraph (a)              above, or imposed elsewhere.         “Write-down and Conversion Powers” means:         (a)   in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule              from time to time, the powers described as such in relation to that Bail-In Legislation              in the EU Bail-In Legislation Schedule;         (b)   in relation to any other applicable Bail-In Legislation:               (i)   any powers under that Bail-In Legislation to cancel, transfer or dilute shares                    issued by a person that is a bank or investment firm or other financial institution                    or affiliate of a bank, investment firm or other financial institution, to cancel,                    reduce, modify or change the form of a liability of such a person or any contract                    or instrument under which that liability arises, to convert all or part of that                    liability into shares, securities or obligations of that person or any other person,                    to provide that any such contract or instrument is to have effect as if a right had                    been exercised under it or to suspend any obligation in respect of that liability                    or any of the powers under that Bail-In Legislation that are related to or                    ancillary to any of those powers; and               (ii)  any similar or analogous powers under that Bail-In Legislation; and         (c)   in relation to any U.K. Bail-In Legislation:                (i)   any powers under that U.K. Bail-In Legislation to cancel, transfer or dilute                    shares issued by a person that is a bank or investment firm or other financial                    institution or affiliate of a bank, investment firm or other financial institution,                    to cancel, reduce, modify or change the form of a liability of such a person or                    any contract or instrument under which that liability arises, to convert all or                    part of that liability into shares, securities or obligations of that person or any                    other person, to provide that any such contract or instrument is to have effect                    as if a right had been exercised under it or to suspend any obligation in respect                    of that liability or any of the powers under that U.K. Bail-In Legislation that                    are related to or ancillary to any of those powers; and               (ii)  any similar or analogous powers under that U.K. Bail-In Legislation.   1.2   Construction         1.2.1 The following definitions have the meanings given to them in Clause 19 (Financial              Covenants):               (a)   Cash;               (b)   Cash Equivalent Investments;                                          20 

 

      (c)   Consolidated EBITDA;         (d)   Interest Payable;         (e)   Measurement Period;         (f)   Regulatory Asset Base; and         (g)   Total Net Debt.   1.2.2 In this Agreement, unless the contrary intention appears, a reference to:         (a)   an “Arranger”, the “Facility Agent” any “Finance Party”, any “Lender” or              any “Party” shall be construed so as to include its successors in title, permitted              assigns and permitted transferees to, or of, its rights and/or obligations under              the Finance Documents;         (b)   an amendment includes a supplement, novation, restatement or re-enactment              and amended will be construed accordingly;         (c)   assets includes present and future properties, revenues and rights of every              description;         (d)   an authorisation includes an authorisation, consent, approval, resolution,              licence, exemption, filing, registration or notarisation;         (e)   disposal means a sale, transfer, grant, lease or other disposal, whether              voluntary or involuntary, and dispose will be construed accordingly;         (f)   indebtedness includes any obligation (whether incurred as principal or as              surety) for the payment or repayment of money;         (g)   know your customer requirements are the identification checks that a              Finance Party requests in order to meet its obligations under any applicable law              or regulation to identify a person who is (or is to become) its customer;         (h)   a person includes any individual, company, corporation, unincorporated              association or body (including a partnership, trust, joint venture or consortium),              government, state, agency, organisation or other entity whether or not having              separate legal personality;         (i)   a regulation includes any regulation, rule, official directive, request or              guideline (whether or not having the force of law but, if not having the force of              law, being of a type with which any person to which it applies is accustomed              to comply) of any governmental, inter-governmental or supranational body,              agency, department or regulatory, self-regulatory or other authority or              organisation;         (j)   the winding-up of a person includes the administration, dissolution or              liquidation or other like process of that person, any composition or arrangement              with the creditors, amalgamation, reconstruction, reorganisation or              consolidation pursuant to Part XXVI of the Companies Act 2006 proposed or              carried out in respect of that person or a company voluntary arrangement              pursuant to the Insolvency Act 1986 carried out or proposed in respect of that              person;                                    21 

 

      (k)   a currency is a reference to the lawful currency for the time being of the relevant              country;         (l)   save as set out in the definition of Margin in Clause 1.1 (Definitions), a Default              (other than an Event of Default) being outstanding means that it has not been              remedied or waived and an Event of Default being outstanding means that it              has not been waived;         (m)   a provision of law is a reference to that provision as extended, applied, amended              or re-enacted and includes any subordinate legislation;         (n)   a Clause, a sub-clause or a Schedule is a reference to a clause or sub-clause of,              or a schedule to, this Agreement;         (o)   a person includes its successors in title, permitted assigns and permitted              transferees;         (p)   a Finance Document or another document is a reference to that Finance              Document or other document as amended; and         (q)   a time of day is a reference to London time.   1.2.3 Unless the contrary intention appears, a reference to a month or months is a reference        to a period starting on one day in a calendar month and ending on the numerically        corresponding day in the next calendar month or the calendar month in which it is to        end, except that:         (a)   if the numerically corresponding day is not a Business Day, the period will end              on the next Business Day in that month (if there is one) or the preceding              Business Day (if there is not);         (b)   if there is no numerically corresponding day in that month, that period will end              on the last Business Day in that month; and         (c)   notwithstanding sub-clause 1.2.3(a) above, a period which commences on the              last Business Day of a month will end on the last Business Day in the next              month or the calendar month in which it is to end, as appropriate.   1.2.4 Unless the contrary intention appears:         (a)   a reference to a Party will not include that Party if it has ceased to be a Party              under this Agreement;         (b)   a word or expression used in any other Finance Document or in any notice              given in connection with any Finance Document has the same meaning in that              Finance Document or notice as in this Agreement; and         (c)   any obligation of a Borrower under the Finance Documents which is not a              payment obligation remains in force for so long as any payment obligation of              that Borrower is or may be outstanding under the Finance Documents.   1.2.5 The headings in this Agreement do not affect its interpretation.                                    22 

 

1.3   Third party rights         1.3.1 Unless expressly provided to the contrary in a Finance Document, 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.         1.3.2 Notwithstanding any term of any Finance Document, the consent of any person who is              not a Party is not required to rescind or vary this Agreement at any time.                                          23 

 

2.    THE FACILITIES   2.1   The Facilities         2.1.1 Subject to the terms of this Agreement, the Lenders make available to:               (a)   WPDEM, a multicurrency revolving credit facility in an aggregate amount the                    Base Currency Amount of which is equal to the Facility A Commitments;               (b)   WPDWM, a multicurrency revolving credit facility in an aggregate amount the                    Base Currency Amount of which is equal to the Facility B Commitments;               (c)   WPDSW, a multicurrency revolving credit facility in an aggregate amount the                    Base Currency Amount of which is equal to the Facility C Commitments; and               (d)   WPDSWa, a multicurrency revolving credit facility in an aggregate amount the                    Base Currency Amount of which is equal to the Facility D Commitments.         2.1.2 For the avoidance of doubt, subject to any increase in Commitments under Clause 2.2              (Increase), the Commitments of each Lender shall be split on a pro rata basis between              all of the Facilities.   2.2   Increase         2.2.1 A Borrower may by giving prior notice to the Facility Agent by no later than the date              falling 10 Business Days after the effective date of a cancellation of:               (a)   the Available Commitments of a Defaulting Lender in accordance with                    sub-clause 9.6.4 of Clause 9.6 (Involuntary prepayment and cancellation); or                (b)   the Commitments of a Lender in accordance with:                     (i)    Clause 9.1 (Mandatory prepayment - illegality); or                     (ii)   sub-clause 9.6.1 of Clause 9.6 (Involuntary prepayment and                           cancellation),               request that the relevant Commitments be increased (and the relevant Commitments              shall be so increased) in an aggregate amount in the Base Currency of up to the amount              of the Available Commitments or Commitments so cancelled as follows:               (c)   the increased Commitments will be assumed by one or more Lenders or other                    banks, financial institutions, trusts, funds or other entities (each an “Increase                    Lender”) selected by the relevant Borrower (each of which shall not be a                    member of a Borrower Group and which is further acceptable to the Facility                    Agent (acting reasonably)) and each of which confirms its willingness to                    assume and does assume all the obligations of a Lender corresponding to that                    part of the increased Commitments which it is to assume, as if it had been an                    Original Lender in respect of those Commitments;               (d)   each of the Borrowers and any Increase Lender shall assume obligations                    towards one another and/or acquire rights against one another as the Borrowers                    and the Increase Lender would have assumed and/or acquired had the Increase                    Lender been an Original Lender in respect of that part of the increased                    Commitments which it is to assume;                                           24 

 

      (e)   each Increase Lender shall become a Party as a “Lender” and any Increase              Lender and each of the other Finance Parties shall assume obligations towards              one another and acquire rights against one another as that Increase Lender and              those Finance Parties would have assumed and/or acquired had the Increase              Lender been an Original Lender in respect of that part of the increased              Commitments which it is to assume;         (f)   the Commitments of the other Lenders shall continue in full force and effect;              and         (g)   any increase in the Commitments shall take effect on the date specified by the              relevant Borrower in the notice referred to above or any later date on which the              conditions set out in sub-clause 2.2.2 below are satisfied.   2.2.2 An increase in the Commitments will only be effective on:         (a)   the execution by the Facility Agent of an Increase Confirmation from the              relevant Increase Lender; and         (b)   in relation to an Increase Lender which is not a Lender immediately prior to the              relevant increase the performance by the Facility Agent of all necessary “know              your customer” or other similar checks under all applicable laws and              regulations in relation to the assumption of the increased Commitments by that              Increase Lender, the completion of which the Facility Agent shall promptly              notify to the relevant Borrower and the Increase Lender.   2.2.3 Each Increase Lender, by executing the Increase Confirmation, confirms (for the        avoidance of doubt) that the Facility Agent has authority to execute on its behalf any        amendment or waiver that has been approved by or on behalf of the requisite Lender or        Lenders in accordance with this Agreement on or prior to the date on which the increase        becomes effective and that it is bound by that decision to the same extent as it would        have been had it been an Original Lender.   2.2.4 Unless the Facility Agent otherwise agrees or the increased Commitment is assumed        by an existing Lender, the relevant Borrower shall, on the date upon which the increase        takes effect, pay to the Facility Agent (for its own account) a fee of £3,000 and that        Borrower shall promptly on demand pay the Facility Agent the amount of all costs and        expenses (including legal fees) reasonably incurred by it in connection with any        increase in Commitments under this Clause 2.2.   2.2.5 A Borrower may pay to the Increase Lender a fee in the amount and at the times agreed        between the relevant Borrower and the Increase Lender in a letter between that        Borrower and the Increase Lender setting out that fee. A reference in this Agreement        to a Fee Letter shall include any letter referred to in this paragraph.   2.2.6 Clause 29.5  (Limitation of responsibility of Existing Lender) shall apply mutatis        mutandis in this Clause 2.2 in relation to an Increase Lender as if references in that        Clause to:         (a)   an “Existing Lender” were references to all the Lenders immediately prior to              the relevant increase;         (b)   the “New Lender” were references to that “Increase Lender”; and         (c)   a “re-transfer” and “re-assignment” were references to respectively a              “transfer” and “assignment”.                                    25 

 

      2.2.7 Each Party (other than the Increase Lender) irrevocably authorises the Facility Agent              to execute any duly completed Increase Confirmation on its behalf.   2.3   Nature of a Finance Party’s rights and obligations         Unless otherwise agreed by all the Finance Parties;         2.3.1 the obligations of a Finance Party under the Finance Documents are several;         2.3.2 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;         2.3.3 no Finance Party is responsible for the obligations of any other Finance Party under the              Finance Documents;         2.3.4 the rights of a Finance Party under or in connection with the Finance Documents are              separate and independent rights and a debt arising under the Finance Documents to a              Finance Party is a separate and independent debt in respect of which a Finance Party              shall be entitled to enforce its rights in accordance with sub-paragraph 2.3.5 below. The              rights of each Finance Party include any debt owing to that Finance Party under the              Finance Documents and, for the avoidance of doubt, any part of a Loan or any other              amount owed by a Borrower which relates to a Finance Party's participation in a Facility              or its role under a Finance Document (including any such amount payable to the Facility              Agent on its behalf) is a debt owing to that Finance Party by that Borrower; and         2.3.5 a Finance Party may, except as otherwise stated in the Finance Documents, separately              enforce its rights under or in connection with the Finance Documents.   3.    Purpose   3.1   Purpose         Each Borrower shall apply all amounts borrowed by it under the relevant Facility towards:         (a)   the general corporate purposes of the relevant Borrower Group;         (b)   the refinancing, and any associated costs of such refinancing, of the Existing Facilities;              and          (c)   in compliance with the Licence.   3.2   No obligation to monitor         No Finance Party is bound to monitor or verify any amount borrowed pursuant to this        Agreement.   4.    CONDITIONS PRECEDENT   4.1   Conditions precedent documents         4.1.1 A Request may not be given until the Facility Agent has notified the Borrowers and the              Lenders that it has received (or waived receipt of) all of the documents and evidence              set out in Schedule 2 (Conditions Precedent Documents) in form and substance              satisfactory to the Facility Agent. The Facility Agent shall give this notification to the              Borrowers and the Lenders upon being so satisfied.                                          26 

 

      4.1.2 Other than to the extent that the Majority Lenders notify the Facility Agent in writing              to the contrary before the Facility Agent gives the notification described in sub-             paragraph 4.1.1 above, the Lenders authorise (but do not require) the Facility Agent to              give that notification. The Facility Agent shall not be liable for any damages, costs or              losses whatsoever as a result of giving any such notification.   4.2   Further conditions precedent         The obligations of each Lender to participate in any Loan are subject to the further conditions        precedent that on both the date of the Request and the Drawdown Date for that Loan:         4.2.1 the Repeating Representations are correct in all material respects in respect of the              Borrower (and, as applicable, the relevant Borrower Group) delivering the Request; and         4.2.2 no Default or, in the case of a Rollover Loan, no Event of Default in respect of the              Borrower (and, as applicable, the relevant Borrower Group) delivering the Request is              outstanding or would result from the Loan.   4.3   Conditions relating to Optional Currencies         4.3.1 A currency will constitute an Optional Currency in relation to a Loan if:               (a)   it is readily available in the amount required and freely convertible into the                    Base Currency in the wholesale market for that currency on the Quotation Day                    and the Drawdown Date for that Loan; and               (b)   it is a Pre-approved Currency or has been approved by the Facility Agent                    (acting on the instructions of all the Lenders) on or prior to receipt by the                    Facility Agent of the relevant Request for that Loan.         4.3.2 If the Facility Agent has received a written request from a Borrower for a currency to              be approved under paragraph (b) of sub-clause 4.3.1 above, the Facility Agent will              confirm to that Borrower by the Specified Time:               (a)   whether or not the Lenders have granted their approval; and               (b)   if approval has been granted, the minimum amount (and, if required, integral                    multiples) for any subsequent Loan in that currency.   4.4   Maximum number         4.4.1 Unless the Facility Agent agrees, a Request in relation to the relevant Facility may not              be given if, as a result, there would be:               (a)   more than 10 Facility A Loans outstanding;               (b)   more than 10 Facility B Loans outstanding;               (c)   more than 10 Facility C Loans outstanding; and/or               (d)   more than 10 Facility D Loans outstanding.         4.4.2 Any Loan made by a single Lender under Clause 7.2 (Revocation of a currency) shall              not be taken into account in this Clause 4.4.                                          27 

 

5.    UTILISATION   5.1   Giving of Requests         5.1.1 A Borrower may borrow a Loan by giving to the Facility Agent a duly completed              Request not later than the Specified Time.         5.1.2 Each Request is irrevocable.   5.2   Completion of Requests         5.2.1 A Request for a Loan will not be regarded as having been duly completed unless:                (a)   the Borrower and the relevant Facility is identified;               (b)   the Drawdown Date is a Business Day falling within the Availability Period;               (c)   the currency and amount of the Loan comply with Clause 5.3 (Currency and                    amount);               (d)   the proposed Term complies with this Agreement; and               (e)   it specifies the account and bank to which the Loan shall be credited.         5.2.2 Only one Loan per Borrower may be requested in a Request.   5.3   Currency and amount         5.3.1 The currency specified in a Request must be either the Base Currency or an Optional              Currency.         5.3.2 The amount of the proposed Loan must be:               (a)   if the currency selected is the Base Currency, a minimum of £5,000,000 and an                    integral multiple of £1,000,000 or, if less, the Available Facility (or such other                    amount as the Facility Agent may agree);                (b)   if the currency selected is an Optional Currency which is a Pre-approved                    Currency, a minimum of (as applicable):                     (i)    U.S.$5,000,000 and an integral multiple of U.S.$1,000,000; or                     (ii)   €5,000,000 and an integral multiple of €1,000,000,                      or, in each case, if less, the Available Facility; or               (c)   if the currency selected is an Optional Currency other than a Pre-approved                    Currency, the minimum amount (and if required, integral multiple) specified                    by the Facility Agent pursuant to paragraph (b)  of  sub-clause 4.3.2  of                    Clause 4.3  (Conditions relating to Optional Currencies) or, if less, the                    Available Facility.   5.4   Advance of Loan         5.4.1 The Facility Agent must promptly notify each Lender of the details of the requested              Loan and the amount of its share in that Loan.                                          28 

 

      5.4.2 If the conditions set out in this Agreement have been met, and subject to Clause 8.2              (Cashless Rollover), each Lender shall make its participation in each Loan available by              no later than 2.00pm on the Drawdown Date through its Facility Office.         5.4.3 Save as set out in sub-clause 5.4.4 below, the amount of each Lender’s share of the              Loan will be its Pro Rata Share on the proposed Drawdown Date.         5.4.4 No Lender is obliged to participate in a Loan if as a result:               (a)   the Base Currency Amount of its share in the aggregate amount of the Loans                    would exceed its Commitment; or                (b)   the Base Currency Amount of the Loans would exceed:                     (i)    the Commitments in respect of a particular Facility; or                     (ii)   the Total Commitments.         5.4.5 The Facility Agent shall determine the Base Currency Amount of each Loan which is              to be made in an Optional Currency and shall notify each Lender of the amount,              currency and the Base Currency Amount of each Loan, the amount of its participation              in that Loan and, if different, the amount of that participation to be made available in              accordance with Clause 16 (Payment Mechanics), in each case by the Specified Time.   6.    EXTENSION OPTION   6.1   The Borrowers may by notice to the Facility Agent (the “Initial Extension Request”) not more        than 60 days and not less than 30 days before the first anniversary of the Signing Date, request        that the Final Maturity Date in respect of each Facility be extended for a further period of one        year.   6.2   The Borrowers may by notice to the Facility Agent (the “Second Extension Request”) no more        than 60 days and not less than 30 days before the second anniversary of the Signing Date,        request that the Final Maturity Date in respect of each Facility:               (a)   if the Initial Extension Request has been made, be extended for a further period                    of one year; or               (b)   if no Initial Extension Request has been made, be extended for a period of two                    years,         as notified by the Borrowers in the notice to the Facility Agent.   6.3   The Facility Agent must promptly notify the Lenders of any Initial Extension Request or Second        Extension Request (an “Extension Request”).   6.4   Each Lender may, in its sole discretion, agree to any Extension Request by notifying the Facility        Agent accordingly by the date falling 15 days before the first or second anniversary of the        Signing Date (as applicable).   6.5   If any Lender fails to reply to the Facility Agent with respect to an Extension Request on or        before the date falling 15 days before the first or second anniversary of the Signing Date as        applicable, it will be deemed to have refused that Extension Request and its Commitment will        not be extended.   6.6   Subject to Clause 6.9 below, each Extension Request is irrevocable.                                          29 

 

6.7   The Facility Agent must notify the Borrowers and the Lenders as soon as reasonably practicable        (and in any event, not later than the date falling 10 days before the first anniversary or the        second anniversary of the Signing Date, as applicable) whether the Lenders have accepted the        relevant Extension Request and if one or more (but not all) of the Lenders have agreed to an        Extension Request, then the Facility Agent must  additionally identify in that notification which        Lenders have not agreed to the relevant Extension Request.   6.8   The Borrowers must notify the Facility Agent as soon as reasonably practicable (and in any        event, not later than the date falling 5 days before the first anniversary or the second anniversary        of the Signing Date, as applicable) whether or not they accept the relevant extension to the Final        Maturity Date offered by all of those Lenders who have agreed to such extension pursuant to        the relevant Extension Request and, if the Borrowers do wish to accept the offered extension,        they shall (on the date of their notification to the Facility Agent pursuant to this Clause 6.8) pay        to the Facility Agent (for the account of each extending Lender) an extension fee in an amount        equal to 0.05% of the Commitments of each such extending Lender (or such other fee as may        otherwise be agreed between the Borrowers, the Facility Agent and the extending Lenders).   6.9   The Borrowers may, on the basis that one or more of the Lenders have not agreed to the        Extension Request and no later than the date falling 5 days before the relevant anniversary of        the Signing Date, withdraw the request by notice to the Facility Agent which will promptly        notify the Lenders of such withdrawal.   6.10  Subject to the Borrowers paying the extension fee described in Clause 6.8 above, the Final        Maturity Date (and the relevant Lenders’ Commitments) shall, with regards to those Lenders        who have accepted the relevant Extension Request, be extended to the date falling 4 years after        the Signing Date (with regards to an Initial Request) or the date falling 5 years after the Signing        Date (with regards to a Second Extension Request) with effect from the date of the Borrowers’        notification under Clause 6.8 above of the acceptance of the offered extension.   6.11  In no event shall the Final Maturity Date extend beyond the date falling 5 years after the Signing        Date.   7.    OPTIONAL CURRENCIES   7.1   Selection         7.1.1 A Borrower must select the currency of a Loan in its Request. A Borrower may select              the Base Currency or an Optional Currency for a Loan.         7.1.2 Unless the Facility Agent otherwise agrees, the Loans may not be denominated at any              one time in more than three currencies.   7.2   Revocation of currency         7.2.1 Notwithstanding any other term of this Agreement, if before the Specified Time on any              Quotation Day the Facility Agent receives notice from a Lender that:               (a)   the Optional Currency requested is not readily available to it in the Relevant                    Market in the amount and for the period required; or               (b)   participating in a Loan in the proposed Optional Currency might contravene                    any law or regulation applicable to it,               the Facility Agent must give notice to the relevant Borrower to that effect promptly and              in any event before the Specified Time on that day.                                          30 

 

      7.2.2 In this event:               (a)   that Lender must participate in the Loan in the Base Currency (in an amount                    equal to that Lender’s proportion of the Base Currency Amount or, in respect                    of a Rollover Loan, an amount equal to that Lender’s proportion of the Base                    Currency Amount of the Rollover Loan that is due to be made); and               (b)   the share of that Lender in the Loan and any other similarly affected Lender(s)                    will be treated as a separate Loan denominated in the Base Currency during                    that Term.         7.2.3 Any part of a Loan treated as a separate Loan under this sub-clause will not be taken              into account for the purposes of any limit on the number of Loans or currencies              outstanding at any one time.         7.2.4 A Loan will still be treated as a Rollover Loan if it is not denominated in the same              currency as the maturing Loan by reason only of the operation of this sub-clause.   7.3   Optional Currency equivalents         Except as expressly provided in this Agreement, the equivalent in the Base Currency of a Loan        or part of a Loan in an Optional Currency for the purposes of calculating:         7.3.1 whether any limit under this Agreement has been exceeded;         7.3.2 the amount of a Loan;         7.3.3 the share of a Lender in a Loan;         7.3.4 the amount of any repayment of a Loan; or         7.3.5 the undrawn amount of a Lender’s Commitment,          is its Base Currency Amount.   8.    REPAYMENT   8.1   Repayment of Loans         8.1.1 Each Borrower must repay each Loan borrowed by it in full on its Maturity Date. No              Loan may be outstanding after the Final Maturity Date.         8.1.2 Subject to the other terms of this Agreement, any amounts repaid under sub-clause 8.1.1              above may be re-borrowed.   8.2   Cashless Rollover         8.2.1 Without prejudice to each Borrower’s obligation under Clause 8.1 above, if one or more              Loans are to be made available to the same Borrower under the same Facility:               (a)   on the same day that a maturing Loan is due to be repaid by that Borrower;               (b)   in the same currency as the maturing Loan (unless it arose as a result of the                    operation of Clause 7.2 (Revocation of currency)); and               (c)   in whole or in part for the purpose of refinancing the maturing Loan,                                          31 

 

            the aggregate amount of the new Loans shall be treated as if applied in or towards              repayment of the maturing Loan so that:                     (i)    if the amount of the maturing Loan exceeds the aggregate amount of                           the new Loans:                            (A)   that Borrower will only be required to pay an amount in cash                                 in the relevant currency equal to that excess; and                            (B)   each Lender’s participation (if any) in the new Loans shall be                                 treated as having been made available and applied by the                                 relevant Borrower in or towards repayment of that Lender’s                                 participation (if any) in the maturing Loan and that Lender will                                 not be required to make its participation in the new Loans                                 available in cash; and                     (ii)   if the amount of the maturing Loan is equal to or less than the aggregate                           amount of the new Loans:                            (A)   the relevant Borrower will not be required to make any                                 payment in cash; and                            (B)   each Lender will be required to make its participation in the                                 new Loans available in cash only to the extent that its                                 participation (if any) in the new Loans exceeds that Lender’s                                 participation (if any) in the maturing Loan and the remainder                                 of that Lender’s participation in the new Loans shall be treated                                 as having been made available and applied by the relevant                                 Borrower in or towards repayment of that Lender’s                                 participation in the maturing Loan.   9.    PREPAYMENT AND CANCELLATION   9.1   Mandatory prepayment - illegality         9.1.1 A Lender must notify the Borrowers promptly if it becomes aware that it is unlawful in              any jurisdiction for that Lender to perform any of its obligations under a Finance              Document or to fund or maintain its share in any Loan.         9.1.2 After notification under clause 9.1.1 above:               (a)   the relevant Borrowers must repay or prepay the share of that Lender in each                    Loan made to it on the date specified in clause 9.1.3 below; and               (b)   the Commitments of that Lender will be immediately cancelled.         9.1.3 The date for repayment or prepayment of a Lender’s share in a Loan will be:               (a)   the Business Day following receipt by the relevant Borrower of notice from the                    Lender under sub-clause 9.1.1 above; or               (b)   if later, the latest date allowed by the relevant law.   9.2   Mandatory prepayment - change of control         If, except in the context of a group reorganisation where each Borrower continues to be        controlled directly or indirectly by PPL, a Borrower becomes aware of any person (whether                                          32 

 

      alone or together with any associated person or persons) gaining control of that Borrower (for        these purposes “associated person” means, in relation to any person, a person who is (i) “acting        in concert” (as defined in the City Code on Takeovers and Mergers) with that person or (ii) a        “connected” person (as defined in section 1122 of the Taxes Act) of that person and “control”        means the relevant person satisfies any of the criteria set out in paragraphs (1)(a) to (c) of        Section 1159 of the Companies Act 2006):         9.2.1 within five days of such date, that Borrower shall give notice of such change of control              to the Facility Agent;         9.2.2 the Lenders and the relevant Borrower shall immediately enter into negotiations for a              period of not more than 45 days from the date of the change of control with a view to              agreeing whether the relevant Facility shall continue to be made available and on what              terms;         9.2.3 if no such agreement is reached within the said period of 45 days then:                (a)   any Lender may on 10 days’ notice to the Facility Agent and to the Borrower                    require the repayment of its share in each Loan and cancel its Commitment; or               (b)   the Majority Lenders may on 10 days’ notice to the Borrower require                    repayment in full of all outstanding Loans and cancel the Total Commitments;                    and         9.2.4 a Lender shall not be obliged to fund any further loans under a Facility (except for a              Rollover Loan) during the negotiation period set out in sub-clause 9.2.2, and if no              agreement is reached within such negotiation period, during the 10 day notice period              set out in sub-clause 9.2.3.   9.3   Voluntary prepayment         9.3.1 A Borrower may, by giving not less than five Business Days’ prior written notice to the              Facility Agent, prepay any Loan at any time in whole or in part.         9.3.2 A prepayment of part of a Loan must reduce the Base Currency Amount of that Loan              by a minimum amount of £1,000,000.   9.4   Automatic cancellation         The Commitments of each Lender will be automatically cancelled at the close of business on        the last day of the Availability Period.   9.5   Voluntary cancellation         9.5.1 A Borrower may, by giving not less than three Business Days’ prior written notice to              the Facility Agent, cancel the unutilised amount of the Commitments applicable to its              Facility in whole or in part.         9.5.2 Partial cancellation of the relevant Commitments must be in a minimum amount of              £5,000,000 and an integral multiple of £1,000,000.         9.5.3 Any cancellation in part shall be applied against the Commitment of each Lender pro              rata.                                          33 

 

9.6   Involuntary prepayment and cancellation         9.6.1 If a Borrower is, or will be, required to pay to a Lender a Tax Payment or an Increased              Cost, that Borrower may, while the requirement continues, give notice to the Facility              Agent requesting prepayment and cancellation in respect of that Lender.         9.6.2 After notification under sub-clause 9.6.1 above:               (a)   the relevant Borrower must repay or prepay that Lender’s share in each Loan                    made to it on the date specified in sub-clause 9.6.3 below; and               (b)   the Commitments of that Lender will be immediately cancelled.         9.6.3 The date for repayment or prepayment of a Lender’s share in a Loan will be the last              day of the current Term for that Loan or, if earlier, the date specified by the relevant              Borrower in its notification.         9.6.4                (a)   If any Lender becomes a Defaulting Lender, a Borrower may, at any time whilst                    the Lender continues to be a Defaulting Lender, give the Facility Agent 5                    Business Days’ notice of cancellation of the Available Commitment of that                    Lender.               (b)   On the notice referred to in paragraph (a) above becoming effective, the                    Available Commitment of the Defaulting Lender shall immediately be reduced                    to zero.               (c)   The Facility Agent shall as soon as practicable after receipt of a notice referred                    to in paragraph (a) above, notify all the Lenders.   9.7   Re-borrowing of Loans         Any voluntary prepayment of a Loan may be re-borrowed on the terms of this Agreement. Any        mandatory or involuntary prepayment of a Loan may not be re-borrowed.   9.8   Miscellaneous provisions         9.8.1 Any notice of prepayment and/or cancellation under this Agreement is irrevocable and              must specify the relevant date(s) and the affected Facility, Loans and Commitments.              The Facility Agent must notify the Lenders promptly of receipt of any such notice.         9.8.2 Unless required otherwise pursuant to this Agreement, all prepayments made under this              Agreement, including pursuant to Clause 9.2 (Mandatory prepayment - change of              control), shall be applied:               (a)   pro rata to each Lender’s participation in such Loan; and               (b)   against the relevant Facility of the Borrower making that prepayment,               save that the provisions of this sub-clause 9.8.2 shall not apply to any prepayments              made in accordance with sub-clause 9.1.3 or paragraph (a) of sub-clause 9.2.3.         9.8.3 All prepayments under this Agreement must be made with accrued interest on the              amount prepaid. No premium or penalty is payable in respect of any prepayment except              for Break Costs.                                          34 

 

      9.8.4 The Majority Lenders may agree to a shorter notice period for a voluntary prepayment              or a voluntary cancellation.         9.8.5 No prepayment or cancellation is allowed except in accordance with the express terms              of this Agreement.          9.8.6 Subject to Clause 2.2 (Increase), no amount of the Total Commitments cancelled under              this Agreement may subsequently be reinstated.   10.   INTEREST   10.1  Calculation of interest         The rate of interest on each Loan for each Term is the percentage rate per annum equal to the        aggregate of the applicable:         10.1.1 Margin; and         10.1.2 LIBOR or, in relation to any Loan in euro, EURIBOR.   10.2  Payment of interest         Except where it is provided to the contrary in this Agreement, each Borrower must pay accrued        interest on each Loan made to it on the last day of each Term and also, if the Term is longer        than six months, on the dates falling at six-monthly intervals after the first day of that Term.   10.3  Interest on overdue amounts         10.3.1 If a Borrower fails to pay any amount payable by it under the Finance Documents on              its due date, it must immediately on demand by the Facility Agent pay interest on the              overdue amount from its due date up to the date of actual payment, both before, on and              after judgment.         10.3.2 Interest on an overdue amount is payable at a rate determined by the Facility Agent to              be one per cent. per annum above the rate which would have been payable if the overdue              amount had, during the period of non-payment, constituted a Loan in the currency of              the overdue amount. For this purpose, the Facility Agent may (acting reasonably):               (a)   select successive Terms of any duration of up to three months; and               (b)   determine the appropriate Quotation Day for that Term.         10.3.3 Notwithstanding sub-clause 10.3.2 above, if the overdue amount is a principal amount              of a Loan and becomes due and payable prior to the last day of its current Term, then:               (a)   the first Term for that overdue amount will be the unexpired portion of that                    Term; and               (b)   the rate of interest on the overdue amount for that first Term will be one per                    cent. per annum above the rate then payable on that Loan.               After the expiry of the first Term for that overdue amount, the rate on the overdue              amount will be calculated in accordance with sub-clause 10.3.2 above.          10.3.4 Interest (if unpaid) on an overdue amount will be compounded with that overdue              amount at the end of each of its Terms but will remain immediately due and payable.                                          35 

 

10.4  Notification of rates of interest         The Facility Agent must promptly notify each relevant Party of the determination of a rate of        interest under this Agreement.   11.   TERMS   11.1  Selection         11.1.1 Each Loan has one Term only.         11.1.2 A Borrower must select the Term for a Loan in the relevant Request.         11.1.3 Subject to the following provisions of this Clause, each Term for a Loan will be one,              three or six months or for a period of one to thirty days or any other period agreed              between a Borrower and the Lenders.         11.1.4 A Borrower shall not use its right under paragraph 11.1.3 above to select for a Loan a              Term of less than one month’s duration more than six times in any calendar year.         11.1.5 A Term for a Loan shall start on the Drawdown Date for that Loan.   11.2  No overrunning the Final Maturity Date         If a Term would otherwise overrun the Final Maturity Date, it will be shortened so that it ends        on the Final Maturity Date.   11.3  Notification          The Facility Agent must notify the relevant Borrower and the Lenders of the duration of each        Term promptly after ascertaining its duration.   12.   CHANGES TO THE CALCULATION OF INTEREST   12.1  Unavailability of Screen Rate         12.1.1 Interpolated Screen Rate:  If no Screen Rate is available for LIBOR or, if applicable,              EURIBOR for the Term of a Loan, the applicable LIBOR or EURIBOR shall be the              Interpolated Screen Rate for a period equal in length to the Term of that Loan.         12.1.2 Shortened Term:  If no Screen Rate is available for LIBOR or, if applicable, EURIBOR              for:               (a)   the currency of a Loan; or               (b)   the Term of a Loan and it is not possible to calculate the Interpolated Screen                    Rate,               the Term of that Loan shall (if it is longer than the applicable Fallback Term) be              shortened to the applicable Fallback Term and the applicable LIBOR or EURIBOR for              that shortened Term shall be determined pursuant to the definition of “LIBOR” or              “EURIBOR” as applicable.         12.1.3 Shortened Term and Historic Screen Rate:  If the Term of a Loan is, after giving effect              to paragraph 12.1.2 above, either the applicable Fallback Term or shorter than the              applicable Fallback Term and, in either case, no Screen Rate is available for LIBOR or,              if applicable EURIBOR for:                                          36 

 

            (a)   the currency of that Loan; or               (b)   the Term of that Loan and it is not possible to calculate the Interpolated Screen                    Rate,               the applicable LIBOR or EURIBOR shall be the Historic Screen Rate for that Loan.         12.1.4 Shortened Term and Interpolated Historic Screen Rate:  If paragraph 12.1.3 above              applies but no Historic Screen Rate is available for the Term of the Loan, the applicable              LIBOR or EURIBOR shall be the Interpolated Historic Screen Rate for a period equal              in length to the Term of that Loan.         12.1.5 Reference Bank Rate: If paragraph 12.1.4 above applies but it is not possible to              calculate the Interpolated Historic Screen Rate, the Term of that Loan shall, if it has              been shortened pursuant to paragraph 12.1.2 above, revert to its previous length and the              applicable LIBOR or EURIBOR shall be the Reference Bank Rate as of the Specified              Time for the currency of that Loan and for a period equal in length to the Term of that              Loan.         12.1.6 Cost of funds: If paragraph 12.1.5 above applies but no Reference Bank Rate is              available for the relevant currency or Term there shall be no LIBOR or EURIBOR for              that Loan and Clause 12.4 (Cost of funds) shall apply to that Loan for that Term.   12.2  Calculation of Reference Bank Rate         12.2.1 Subject to paragraph 12.2.2 below, if LIBOR or EURIBOR (as applicable) is to be              determined on the basis of a Reference Bank Rate but a Reference Bank does not supply              a quotation by the Specified Time, the Reference Bank Rate shall be calculated on the              basis of the quotations of the remaining Reference Banks.         12.2.2 If at or about noon on the Quotation Day, none or only one of the Reference Banks              supplies a quotation, there shall be no Reference Bank Rate for the relevant Term.   12.3  Market disruption         If before close of business in London on the Quotation Day for the relevant Term, the Facility        Agent receives notification from a Lender or Lenders (whose participations in the relevant Loan        exceed 50% of that Loan) that the cost to it (or them) of funding its participation in that Loan        from whatever source it may reasonably select would be in excess of LIBOR or, if applicable,        EURIBOR then Clause 12.4 (Cost of funds) shall apply to that Loan for the relevant Term.   12.4  Cost of funds         12.4.1 If this Clause 12.4 (Cost of funds) applies, the rate of interest on each Lender’s share of              the relevant Loan for the relevant Term shall be the percentage rate per annum which              is the sum of:               (a)   the Margin; and               (b)   the rate notified to the Facility Agent by that Lender as soon as practicable and                    in any event before interest is due to be paid in respect of that Term, to be that                    which expresses as a percentage rate per annum the cost to the relevant Lender                    of funding its participation in that Loan from whatever source it may reasonably                    select.         12.4.2 If this Clause 12.4 (Cost of funds) applies and the Facility Agent or the Borrower (i) to              whom the relevant Loan is outstanding and/or (ii) which has requested the relevant                                         37 

 

            Loan so require, 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.         12.4.3 Any alternative basis agreed pursuant to paragraph 12.4.2 above shall, with the prior              consent of all the Lenders and the relevant Borrower, be binding on all Parties.         12.4.4 If this Clause 12.4 (Cost of funds) applies pursuant to Clause 12.3 (Market disruption)              and:               (a)   a Lender’s Funding Rate is less than LIBOR or, in relation to any Loan in euro,                    EURIBOR; or                (b)   a Lender does not supply a quotation by the time specified in sub-                   clause 12.4.1(b) above,               the cost to that Lender of funding its participation in that Loan for that Term shall be              deemed, for the purposes of sub-clause 12.4.1 above, to be LIBOR or, in relation to a              Loan in euro, EURIBOR.   12.5  Notification to Company         If Clause 12.4 (Cost of funds) applies the Facility Agent shall, as soon as is practicable, notify        the relevant Borrower(s).   12.6  Break Costs         12.6.1 Each Borrower shall, within three Business Days of demand by a Finance Party, pay to              that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid              Sum being paid by that Borrower on a day other than the last day of a Term for that              Loan or Unpaid Sum.         12.6.2 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 term in              which they accrue.   13.   TAX GROSS-UP AND INDEMNITIES   13.1  Definitions         13.1.1 In this Agreement:               “Borrower DTTP Filing” means an H.M. Revenue & Customs’ Form DTTP2 duly              completed and filed by the relevant Borrower, which:                (a)   where it relates to a Treaty Lender that is an Original Lender, contains the                    scheme reference number and jurisdiction of tax residence stated opposite that                    Lender's name in Schedule 1 (Original Parties), and is filed with HM Revenue                    & Customs within 30 days of the date of this Agreement; or                (b)   where it relates to a Treaty Lender that is not an Original Lender, contains the                    scheme reference number and jurisdiction of tax residence stated in respect of                    that Lender in the documentation which it executes on becoming a Party as a                                          38 

 

      Lender and is filed with HM Revenue & Customs within 30 days of the date        on which that Treaty Lender becomes a Party as a Lender.    “Protected Party” means a Finance Party which is or will be subject to any liability,  or required to make any payment, for or on account of Tax in relation to a sum received  or receivable (or any sum deemed for the purposes of Tax to be received or receivable)  under a Finance Document.   “Qualifying Lender” means:   (a)   a Lender (other than a Lender within paragraph (b) below) which is beneficially        entitled to interest payable to that Lender in respect of an advance under a        Finance Document and is:         (i)    a Lender:                (A)   which is a bank (as defined for the purpose of section 879 of                     the ITA) making an advance under a Finance Document and is                     within the charge to United Kingdom corporation tax as                     respects any payments of interest made in respect of that                     advance or which would be within such charge as respects such                     payments apart from section 18A of the CTA; or                (B)   in respect of an advance made under a Finance Document by a                     person that was a bank (as defined for the purpose of section                     879 of the ITA) at the time that that advance was made and                     within the charge to United Kingdom corporation tax as                     respects any payments of interest made in respect of that                     advance; or         (ii)   a Lender which is:                (A)   a company resident in the United Kingdom for United                     Kingdom tax purposes;                (B)   a partnership each member of which is:                      (1)   a company so resident in the United Kingdom; or                      (2)   a company not so resident in the United Kingdom                           which carries on a trade in the United Kingdom                           through a permanent establishment and which brings                           into account in computing its chargeable profits                           (within the meaning of section 19 of the CTA) the                           whole of any share of interest payable in respect of that                           advance that falls to it by reason of Part 17 of the CTA;                           or                (C)   a company not so resident in the United Kingdom which                     carries on a trade in the United Kingdom through a permanent                     establishment and which brings into account interest payable                     in respect of that advance in computing the chargeable profits                     (within the meaning of section 19 of the CTA) of that                     company; or         (iii)  a Treaty Lender; or                              39 

 

(b)   a Lender which is a building society (as defined for the purpose of section 880        of the ITA) making an advance under a Finance Document.   “Tax Confirmation” means a confirmation by a Lender that the person beneficially  entitled to interest payable to that Lender in respect of an advance under a Finance  Document is either:   (a)   a company resident in the United Kingdom for United Kingdom tax purposes;   (b)   a partnership each member of which is:         (i)    a company so resident in the United Kingdom; or         (ii)   a company not so resident in the United Kingdom which carries on a               trade in the United Kingdom through a permanent establishment and               which brings into account in computing its chargeable profits (within               the meaning of section 19 of the CTA) the whole of any share of               interest payable in respect of that advance that falls to it by reason of               Part 17 of the CTA; or   (c)   a company not so resident in the United Kingdom which carries on a trade in        the United Kingdom through a permanent establishment and which brings into        account interest payable in respect of that advance in computing the chargeable        profits (within the meaning of section 19 of the CTA) of that company.   “Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.   “Treaty Lender” means a Lender which:   (a)   is treated as a resident of a Treaty State for the purposes of the Treaty;   (b)   does not carry on a business in the United Kingdom through a permanent        establishment with which that Lender’s participation in the Loan is effectively        connected; and   (c)   meets all other conditions which must be met under the Treaty for residents of        such Treaty State to obtain full exemption from tax on interest imposed by the        United Kingdom, except that for this purpose it shall be assumed that the        following are satisfied:         (i)    any condition which relates (expressly or by implication) to the               amounts or terms of any Loan or the Finance Documents or any               condition which relates (expressly or by implication) to there not being               a special relationship between a Borrower and the Finance Party or               between them both and another person; and         (ii)   any necessary procedural formality.   “Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”)  with the United Kingdom which makes provision for full exemption from tax imposed  by the United Kingdom on interest.   “UK Non-Bank Lender” means where a Lender becomes a Party after the day on  which this Agreement is entered into, a Lender which gives a Tax Confirmation in the  assignment agreement or Transfer Certificate which it executes on becoming a Party.                              40 

 

      13.1.2 Unless a contrary indication appears, in this Clause 13 a reference to “determines” or              “determined” means a determination made in the absolute discretion of the person              making the determination.   13.2  Tax gross-up         13.2.1 Each Borrower shall make all payments to be made by it without any Tax Deduction,              unless a Tax Deduction is required by law.         13.2.2 Each Borrower shall promptly upon becoming aware that it must make a Tax Deduction              (or that there is any change in the rate or the basis of a Tax Deduction) notify the Facility              Agent accordingly. Similarly, a Lender shall notify the Facility Agent on becoming so              aware in respect of a payment payable to that Lender. If the Facility Agent receives              such notification from a Lender it shall notify the relevant Borrower.         13.2.3 If a Tax Deduction is required by law to be made by a Borrower, 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.         13.2.4 A payment shall not be increased under sub-clause 13.2.3 above by reason of a Tax              Deduction on account of Tax imposed by the United Kingdom, if on the date on which              the payment falls due:               (a)   the payment could have been made to the relevant Lender without a Tax                    Deduction if the Lender had been a Qualifying Lender, but on that date that                    Lender is not or has ceased to be a Qualifying Lender other than as a result of                    any change after the date it became a Lender under this Agreement in (or in the                    interpretation, administration, or application of) any law or Treaty, or any                    published practice or published concession of any relevant taxing authority; or               (b)   the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii)                    of the definition of Qualifying Lender and:                     (i)    an officer of H.M. Revenue & Customs has given (and not revoked) a                           direction (a “Direction”) under section 931 of the ITA which relates to                           the payment and that Lender has received from the Borrower making                           the payment a certified copy of that Direction; and                     (ii)   the payment could have been made to the Lender without any Tax                           Deduction if that Direction had not been made; or               (c)   the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii)                     of the definition of Qualifying Lender and:                     (i)    the relevant Lender has not given a Tax Confirmation to the Borrowers;                           and                     (ii)   the payment could have been made to the Lender without any Tax                           Deduction if the Lender had given a Tax Confirmation to the                           Borrowers on the basis that the Tax Confirmation would have enabled                           the Borrowers to have formed a reasonable belief that the payment was                           an “excepted payment” for the purpose of section 930 of the ITA; or               (d)   the relevant Lender is a Treaty Lender and the Borrower making the payment                    is able to demonstrate that the payment could have been made to the Lender                                          41 

 

            without the Tax Deduction had that Lender complied with its obligations under              sub-clause 13.2.7 or 13.2.10 (as applicable) below.   13.2.5 If a Borrower is required to make a Tax Deduction, that Borrower shall make that Tax        Deduction and any payment required in connection with that Tax Deduction within the        time allowed and in the minimum amount required by law.   13.2.6 Within thirty days of making either a Tax Deduction or any payment required in        connection with that Tax Deduction, the Borrower making that Tax Deduction shall        deliver to the Facility Agent for the Finance Party entitled to the payment a statement        under Section 975 of the ITA, or other 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.   13.2.7          (a)   Subject to paragraph (b) below, a Treaty Lender and the Borrower which makes              a payment to which that Treaty Lender is entitled shall co-operate in completing              any procedural formalities necessary for that Borrower to obtain authorisation              to make that payment without a Tax Deduction.         (b)                  (i)    A Treaty Lender which becomes a Party on the day on which this                     Agreement is entered into that holds a passport under the HMRC DT                     Treaty Passport scheme, and which wishes that scheme to apply to this                     Agreement, shall confirm its scheme reference number and its                     jurisdiction of tax residence opposite its name in Schedule 1 (Original                     Parties); and                (ii)   A Treaty Lender which is not an Original Lender and that holds a                     passport under the HMRC DT Treaty Passport Scheme, and which                     wishes that scheme to apply to this Agreement, shall confirm its                     scheme reference number and its jurisdiction of tax residence in the                     documentation which it executes on becoming a Party as a Lender,                 and having done so, that Lender shall be under no obligation pursuant to               paragraph (a) above.         (c)   Each Lender that includes the confirmation described in paragraph 13.2.7(b)(i)              above in Schedule 1 (The Original Parties) or the confirmation described in              paragraph 13.2.7(b)(ii) above in the documentation which it executes on              becoming a Party as Lender, thereby notifies each Borrower that, to the extent              that that Lender is a Lender under a Facility made available to that Borrower              and the HMRC DT Treaty Passport scheme is to apply in respect of that              Lender’s Commitment(s) or its participation in any Loan to that Borrower, that              Borrower must file a Borrower DTTP Filing.   13.2.8 A UK Non-Bank Lender which becomes a Party on the day on which this Agreement        is entered into gives a Tax Confirmation to the Borrowers by entering into this        Agreement.   13.2.9 A UK Non-Bank Lender shall promptly notify the Borrowers and the Facility Agent if        there is any change in the position from that set out in the Tax Confirmation.                                    42 

 

      13.2.10 If a Lender has confirmed its scheme reference number and its jurisdiction of tax              residence in accordance with sub-clause 13.2.7(b) above and:                (a)   a Borrower making a payment to that Lender has not made a Borrower DTTP                    Filing in respect of that Lender; or                (b)   a Borrower making a payment to that Lender has made a Borrower DTTP                    Filing in respect of that Lender but:                      (i)    that Borrower DTTP Filing has been rejected by H.M. Revenue &                           Customs; or                      (ii)   H.M. Revenue & Customs has not given the Borrower authority to                           make payments to that Lender without a Tax Deduction within 30 days                           of the date of the Borrower DTTP Filing,                and in each case, the Borrower has notified that Lender in writing, that Lender and the              Borrower shall co-operate in completing any additional procedural formalities              necessary for that Borrower to obtain authorisation to make that payment without a Tax              Deduction.         13.2.11 Any Lender which has confirmed its scheme reference number and jurisdiction of tax              residence in accordance with sub-clause 13.2.7(b) will reasonably promptly notify the              Facility Agent and the Borrowers if at any time it ceases to holds a passport under the              HMRC DT Treaty Passport scheme or if it ceases to be able to use such passport as a              Lender. If a Lender has not confirmed its scheme reference number and jurisdiction of              tax residence in accordance with sub-clause 13.2.7(b) above,  no Borrower shall make              a Borrower DTTP Filing or file any form relating to the HMRC DT Treaty Passport              scheme in respect of that Lender’s Commitment or its participation in any Loan, unless              the Lender otherwise agrees.         13.2.12 A Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that              Borrower DTTP Filing to the Facility Agent for delivery to the relevant Lender.   13.3  Tax indemnity         13.3.1 Except as provided below, the Borrowers must, within three Business Days of demand              by the Facility Agent, indemnify a Protected Party against any loss, liability, or cost              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 respect of a Finance              Document.         13.3.2 Sub-clause 13.3.1 above does not apply to any Tax assessed on a Finance Party under              the laws of the jurisdiction in which:               (a)   that Finance Party is incorporated or, if different, the jurisdiction (or                    jurisdictions) in which that Finance Party is treated as resident for tax purposes;                    or               (b)   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 (but not any sum deemed to be received or receivable).                                          43 

 

      13.3.3 Sub-clause 13.3.1 above does not apply to any Tax assessed on a Finance Party to the              extent the loss or liability:               (a)   is compensated for by an increased payment under Clause 13.2 (Tax gross-up);               (b)   would have been compensated for by an increased payment under Clause 13.2                    (Tax gross-up) but was not so compensated solely because one of the                    exclusions in Clause 13.2 (Tax gross-up) applied; or               (c)   relates to a FATCA Deduction required to be made by a Party.         13.3.4 A Protected Party making, or intending to make, a claim under sub-clause 13.3.1 above              must promptly notify the Facility Agent of the event which will give, or has given, rise              to the claim, following which the Facility Agent will notify the relevant Borrower.   13.4  Tax Credit         If a Borrower makes a Tax Payment and the relevant Finance Party determines that:         13.4.1 a Tax Credit is attributable to an increased payment of which that Tax Payment forms              part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax              Payment was required; and         13.4.2 that Finance Party has obtained and utilised that Tax Credit,         the Finance Party shall pay an amount to that Borrower which that Finance Party determines        (in its discretion, acting reasonably) will leave it (after that payment) in the same after-tax        position as it would have been in if the Tax Payment had not been required to be made by that        Borrower. The relevant Finance Party shall take those steps it considers in its opinion        reasonable to seek and claim any tax credit.   13.5  Lender Status Confirmation         Each Lender which becomes a Party to this Agreement after the date of this Agreement shall        indicate, in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it        executes on becoming a Party, and for the benefit of the Facility Agent and without liability to        each Borrower, which of the following categories it falls in:         13.5.1 not a Qualifying Lender;         13.5.2 a Qualifying Lender (other than a Treaty Lender); or         13.5.3 a Treaty Lender.         If such a Lender fails to indicate its status in accordance with this Clause 13.5 then such New        Lender shall be treated for the purposes of this Agreement as if it is not a Qualifying Lender        until such time as it notifies the Facility Agent which category applies (and the Facility Agent,        upon receipt of such notification, shall inform the Borrowers). For the avoidance of doubt, a        Transfer Certificate, Assignment Agreement or Increase Confirmation shall not be invalidated        by any failure of a Lender to comply with this Clause 13.5.   13.6  Stamp taxes         The relevant Borrower shall pay and, within three Business Days of demand, indemnify each        Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp        duty, registration and other similar Taxes payable in respect of any Finance Document, except                                          44 

 

      for any such Tax payable in respect of a Transfer Certificate or other transfer or disposal of a        Lender’s rights or obligations under a Finance Document.   13.7  VAT         13.7.1 All amounts set out, or expressed in a Finance Document to be payable by any Party to              a Finance Party which (in whole or in part) constitute the consideration for a supply or              supplies for VAT purposes shall be deemed to be exclusive of any VAT which is              chargeable on such supply or supplies, and accordingly, subject to sub-clause 13.7.2              below, if VAT is or becomes chargeable on any supply made by any Finance Party to              any Party under a Finance Document and such Finance Party is required to account to              the relevant tax authority for the VAT, that Party shall pay to the Finance Party (in              addition to and at the same time as paying any other consideration for such supply) an              amount equal to the amount of such VAT (and such Finance Party shall promptly              provide an appropriate VAT invoice to such Party).         13.7.2 If VAT is or becomes chargeable on any supply made by any Finance Party (the              “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document,              and any Party other than the Recipient (the “Subject Party”) is required by the terms              of any Finance Document to pay an amount equal to the consideration for such supply              to the Supplier (rather than being required to reimburse the Recipient in respect of that              consideration), such Party shall also pay to the Supplier (in addition to and at the same              time as paying such amount) an amount equal to the amount of such VAT. The              Recipient will promptly pay to the Subject Party an amount equal to any credit or              repayment obtained by the Recipient from the relevant tax authority which the              Recipient reasonably determines is in respect of such VAT.         13.7.3 Where a Finance Document requires any Party to reimburse or indemnify a Finance              Party for any cost or expense, that Party shall reimburse or indemnify (as the case may              be) such Finance Party for the full amount of such cost or expense, including such part              thereof as represents VAT, save to the extent that such Finance Party reasonably              determines that it is entitled to credit or repayment in respect of such VAT from the              relevant tax authority.         13.7.4 Any reference in this Clause 13.7 to any Party shall, at any time when such Party is              treated as a member of a group for VAT purposes, include (where appropriate and              unless the context otherwise requires) a reference to the representative member of such              group at such time (the term “representative member” to have the same meaning as in              the Value Added Tax Act 1994).   13.8  FATCA Information         13.8.1 Subject to sub-clause 13.8.3 below, each Party shall, within ten Business Days of a              reasonable request by another Party:               (a)   confirm to that other Party whether it is:                     (i)    a FATCA Exempt Party; or                     (ii)   not a FATCA Exempt Party;               (b)   supply to that other Party such forms, documentation and other information                    relating to its status under FATCA as that other Party reasonably requests for                    the purposes of that other Party’s compliance with FATCA; and                                          45 

 

            (c)   supply to that other Party such forms, documentation and other information                    relating to its status as that other Party reasonably requests for the purposes of                    that other Party’s compliance with any other law, regulation, or exchange of                    information regime.         13.8.2 If a Party confirms to another Party pursuant to paragraph (a) of sub-clause 13.8.1              above that it is a FATCA Exempt Party and it subsequently becomes aware that it is              not, or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party              reasonably promptly.         13.8.3 Sub-clause 13.8.1 above shall not oblige any Finance Party to do anything, and              paragraph (c) of sub-clause 13.8.1 above shall not oblige any other Party to do              anything, which would or might in its reasonable opinion constitute a breach of:               (a)   any law or regulation;               (b)   any fiduciary duty; or               (c)   any duty of confidentiality.         13.8.4 If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply              forms, documentation or other information requested in accordance with paragraph (a)              or (b) of sub-clause 13.8.1 above (including, for the avoidance of doubt, where              sub-clause 13.8.3 above applies), then such Party shall be treated for the purposes of              the Finance Documents (and payments under them) as if it is not a FATCA Exempt              Party until such time as the Party in question provides the requested confirmation,              forms, documentation or other information.   13.9  FATCA Deduction         13.9.1 Each Party may make any FATCA Deduction it is required to make by FATCA, and              any payment required in connection with that FATCA Deduction, and no Party shall be              required to increase any payment in respect of which it makes such a FATCA              Deduction, or otherwise compensate the recipient of the payment for that FATCA              Deduction.         13.9.2 Each Party shall promptly, upon becoming aware that it must make a FATCA              Deduction (or that there is any change in the rate or the basis of such FATCA              Deduction), notify the Party to whom it is making the payment and, in addition, shall              notify the Borrowers and the Facility Agent and the Facility Agent shall notify the other              Finance Parties.   14.   INCREASED COSTS   14.1  Increased Costs         Except as provided below in this Clause, the Borrowers must pay, within three Business Days,         to a Finance Party the amount of any Increased Cost incurred by that Finance Party or any of        its Affiliates as a result of:         14.1.1 the introduction of, or any change in, or any change in the interpretation, administration              or application of, any law or regulation;         14.1.2 compliance with any law or regulation made after the date of this Agreement provided              that for the purposes of this Agreement and any other Finance Document, Dodd-Frank              shall be deemed to be a law or regulation made after the date of this Agreement; or                                          46 

 

      14.1.3 the implementation or application of, or compliance with, Basel III or CRD IV or any              law or regulation that implements or applies Basel III or CRD IV.   14.2  Exceptions         The Borrowers need not make any payment for an Increased Cost to the extent that the Increased        Cost is:         14.2.1 compensated for under Clause 13.3 (Tax indemnity) (or would have been compensated              for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any              of the exclusions in sub-clauses 13.3.2 and/or 13.3.3 applied);         14.2.2 attributable to a Tax Deduction required by law to be made by a Borrower;         14.2.3 attributable to a FATCA Deduction required to be made by a Party;         14.2.4 attributable to a Finance Party or its Affiliate wilfully failing to comply with any law              or regulation;         14.2.5 attributable to the implementation or application of or compliance with the              “International Convergence of Capital Measurement and Capital Standards, a Revised              Framework” published by the Basel Committee in June 2004 in the form existing on              the date of this Agreement (but excluding any amendment arising out of Basel III)              (“Basel II”) or any other law or regulation which implements Basel II (whether such              implementation, application or compliance is by a government, regulator, Finance Party              or any of its Affiliates)          14.2.6 attributable to Basel III or CRD IV (or any other law or regulation which implements              Basel III or CRD IV) where a Finance Party was or reasonably should have been able              to calculate that Increased Cost on the date on which it became a Finance Party under              this Agreement;          14.2.7 attributable to any Bank Levy (or any payment attributable to, or liability arising as a              consequence of, a Bank Levy); or         14.2.8 not notified by the relevant Finance Party to the Facility Agent and the relevant              Borrower within three Months of that Finance Party becoming aware of such Increased              Cost.         In this Clause 14, a reference to a “Tax Deduction” has the same meaning given to that term in        Clause 13.1 (Definitions).   14.3  Claims         A Finance Party intending to make a claim for an Increased Cost must notify the relevant        Borrower promptly of the circumstances giving rise to, and the amount of, the claim.   15.   MITIGATION   15.1  Mitigation         15.1.1 Each Finance Party must, in consultation with the Borrowers (other than upon the              occurrence of an event referred to at paragraph (d) below where no such consultation              is required), take all reasonable steps to mitigate any circumstances which arise and              which result or would result in any Facility ceasing to be available or:               (a)   any Tax Payment or Increased Cost being payable to that Finance Party;                                          47 

 

            (b)   that Finance Party being able to exercise any right of prepayment and/or                    cancellation under this Agreement by reason of any illegality;               (c)   that Finance Party incurring any cost of complying with the minimum reserve                    requirements of the European Central Bank; or               (d)   the occurrence of any market disruption event,               including transferring its rights and obligations under the Finance Documents to an              Affiliate or changing its Facility Office.         15.1.2 A Finance Party is not obliged to take any step under this Clause 15 if, in the opinion              of that Finance Party (acting reasonably), to do so might be prejudicial to it.         15.1.3 Each Finance Party must promptly notify the Borrowers of any circumstances as              described in paragraphs (a) to (d) of sub-clause 15.1.1 of this Clause 15.1.         15.1.4 The Borrowers must indemnify each Finance Party for all costs and expenses              reasonably incurred by it as a result of any step taken under this Clause 15.1.         15.1.5 This Clause does not in any way limit the obligations of the Borrowers under the              Finance Documents.   15.2  Substitution         Notwithstanding Clause 15.1 (Mitigation), if any circumstances arise which result in:         15.2.1 any Tax Payment or Increased Cost being payable to that Finance Party;         15.2.2 that Finance Party being able to exercise any right of prepayment and/or cancellation              under this Agreement by reason of any illegality;         15.2.3 that Finance Party incurring any cost of complying with the minimum reserve              requirements of the European Central Bank;         15.2.4 the occurrence of any market disruption event; or         15.2.5 any Lender becoming a Non-Consenting Lender,         then a Borrower, at its expense, at any time within 180 days after the occurrence of the relevant        event or circumstance, so long as no Default is outstanding, may by notice to the Facility Agent        and such Finance Party require it (and, if applicable, its Affiliate) to (and to the extent permitted        by law such Finance Party or, if applicable, its Affiliate shall) novate pursuant to Clause 29        (Changes to the Lenders) all (and not part only) of its rights and obligations under this        Agreement to a bank, financial institution, trust, fund or other entity (a “Replacement Finance        Party”) selected by that Borrower, and which is acceptable to the Facility Agent (acting        reasonably) (unless the Facility Agent is an Impaired Agent), which confirms its willingness to        assume and does assume all the obligations of the transferring Finance Party (including the        assumption of the transferring Finance Party’s participations or unfunded participations (as the        case may be) on the same basis as the transferring Finance Party) for a purchase price in cash        payable at the time of transfer equal to the outstanding principal amount of such Finance Party’s        participation in the outstanding Loans and all accrued interest (to the extent that the Facility        Agent has not given a notification under Clause 29.11 (Pro rata interest settlement)), Break        Costs and other amounts payable to such Finance Party under the Finance Documents provided        that:         15.2.6 no Borrower shall have the right to replace the Facility Agent;                                         48 

 

      15.2.7 neither the Facility Agent nor such Finance Party shall have any obligation to the              Borrowers to find a Replacement Finance Party;         15.2.8 the transfer must take place no later than 14 days after the notice referred to above;         15.2.9 in no event shall such Finance Party be required to pay or surrender to the Replacement              Finance Party any of the fees received by such Finance Party pursuant to the Finance              Documents; and         15.2.10 the Finance Party shall only be obliged to transfer its rights and obligations pursuant to              this Clause 15.2 once it is satisfied that it has complied with all necessary “know your              customer” or other similar checks under all applicable laws and regulations in relation              to that transfer to the Replacement Finance Party.   15.3  Conduct of business by a Finance Party         No term of this Agreement will:         15.3.1 interfere with the right of any Finance Party to arrange its affairs (Tax or otherwise) in              whatever manner it thinks fit or oblige any Finance Party to investigate or claim any              Tax Credit; or         15.3.2 oblige any Finance Party to disclose any information relating to its affairs (Tax or              otherwise) or any computation in respect of Tax.   16.   PAYMENT MECHANICS   16.1  Payments to the Facility Agent         16.1.1 On each date on which a Borrower or a Lender is required to make a payment under a              Finance Document, that Borrower 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.         16.1.2 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 such              Participating Member State or London, as specified by the Facility Agent) and with              such bank as the Facility Agent, in each case, specifies.   16.2  Distributions by the Facility Agent         Each payment received by the Facility Agent under the Finance Documents for another Party        shall, subject to Clause 16.3 (Distributions to a Borrower) and Clause 16.4 (Clawback and pre-       funding) be made available by the Facility 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 the Facility Agent by        not less than five Business Days' notice with a bank specified by that Party 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, as specified by that Party).   16.3  Distributions to a Borrower         The Facility Agent may (with the consent of the Borrower or in accordance with Clause 32        (Set-off)) apply any amount received by it for that Borrower in or towards payment (on the date                                          49 

 

      and in the currency and funds of receipt) of any amount due from that Borrower under the        Finance Documents or in or towards purchase of any amount of any currency to be so applied.   16.4  Clawback and pre-funding         16.4.1 Where a sum is to be paid to the Facility Agent under the Finance Documents for              another Party, the Facility 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.         16.4.2 Unless sub-clause 16.4.3 below applies, if the Facility Agent pays an amount to another              Party and it proves to be the case that the Facility 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 Facility Agent shall on demand refund the same to the Facility              Agent together with interest on that amount from the date of payment to the date of              receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds.         16.4.3 If the Facility Agent has notified the Lenders that it is willing to make available amounts              for the account of a Borrower before receiving funds from the Lenders then if and to              the extent that the Facility Agent does so but it proves to be the case that it does not              then receive funds from a Lender in respect of a sum which it paid to a Borrower:               (a)   The Facility Agent shall notify the relevant Borrower of that Lender's identity                    and the Borrower to whom that sum was made available shall on demand                    refund it to the Facility Agent; and                (b)   the Lender by whom those funds should have been made available or, if that                    Lender fails to do so, the Borrower to whom that sum was made available, shall                    on demand pay to the Facility Agent the amount (as certified by the Facility                    Agent) which will indemnify the Facility Agent against any funding cost                    incurred by it as a result of paying out that sum before receiving those funds                    from that Lender.   16.5  Partial Payment         16.5.1 If the Facility Agent receives a payment that is insufficient to discharge all the amounts              then due and payable by a Borrower under the Finance Documents, the Facility Agent              shall apply that payment towards the obligations of that Borrower under the Finance              Documents in the following order:               (a)   first, in or towards payment pro rata of any unpaid amount owing to the                    Facility Agent under the Finance Documents;               (b)   secondly, in or towards payment pro rata of any accrued interest, fee or                    commission due but unpaid under this Agreement;               (c)   thirdly, in or towards payment pro rata of any principal due but unpaid under                    this Agreement; and               (d)   fourthly, in or towards payment pro rata of any other sum due but unpaid                    under the Finance Documents.         16.5.2 The Facility Agent shall, if so directed by the Majority Lenders, vary the order set out              in paragraphs (a) to (d) of sub-clause 16.5.1 above.         16.5.3 This Clause will override any appropriation made by any Borrower.                                          50 

 

16.6  No set-off by Borrowers         All payments to be made by a Borrower under the Finance Documents shall be calculated and        be made without (and free and clear of any deduction for) set-off or counterclaim.   16.7  Business Days         16.7.1 Any payment under any Finance Document 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).         16.7.2 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.   16.8  Currency of account         16.8.1 Subject to sub-clauses 16.8.2 to 16.8.5 below, the Base Currency is the currency of              account and payment for any sum due from any Borrower under any Finance              Document.         16.8.2 A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made              in the currency in which that Loan or Unpaid Sum is denominated, pursuant to this              Agreement, on its due date.         16.8.3 Each payment of interest shall be made in the currency in which the sum in respect of              which the interest is payable was denominated, pursuant to this Agreement, when that              interest accrued.         16.8.4 Each payment in respect of costs, expenses or Taxes shall be made in the currency in              which the costs, expenses or Taxes are incurred.         16.8.5 Any amount expressed to be payable in a currency other than the Base Currency shall              be paid in that other currency.   16.9  Impaired Agent         16.9.1 If, at any time, the Facility Agent becomes an Impaired Agent, a Borrower or a Lender              which is required to make a payment under the Finance Documents to the Facility              Agent in accordance with Clause 16.1 (Payments to the Facility Agent) may instead              either pay that amount direct to the required recipient or pay that amount to an interest              bearing account held with an Acceptable Bank and in relation to which no Insolvency              Event has occurred and is continuing, in the name of the Borrower or the Lender making              the payment and designated as a trust account for the benefit of the Party or Parties              beneficially entitled to that payment under the Finance Documents. In each case such              payments must be made on the due date for payment under the Finance Documents.         16.9.2 All interest accrued on the amount standing to the credit of the trust account shall be              for the benefit of the beneficiaries of that trust account pro rata to their respective              entitlements.         16.9.3 A Party which has made a payment in accordance with this Clause 16.9  shall  be              discharged of the relevant payment obligation under the Finance Documents and shall              not take any credit risk with respect to the amounts standing to the credit of the trust              account.                                          51 

 

      16.9.4 Promptly upon the appointment of a successor Facility Agent in accordance with              Clause 22.12 (Resignation of the Facility Agent), each Party which has made a payment              to a trust account in accordance with this Clause 16.9 shall give all requisite instructions              to the bank with whom the trust account is held to transfer the amount (together with              any accrued interest) to the successor Facility Agent for distribution in accordance with              Clause 16.2 (Distributions by the Facility Agent).          16.9.5 For the purposes of this Clause 16.9 only, an Acceptable Bank shall include any bank              or financial institution approved by the Facility Agent or, if the Facility Agent is an              Impaired Agent, the Majority Lenders.   16.10 Disruption to payment systems etc.         If either the Facility Agent determines (in its discretion) that a Disruption Event has occurred        or the Facility Agent is notified by a Borrower that a Disruption Event has occurred:         (a)   the Facility Agent may, and shall if requested to do so by a Borrower, consult with the              Borrowers with a view to agreeing with the Borrowers such changes to the operation              or administration of the Facilities as the Facility Agent may deem necessary in the              circumstances;         (b)   the Facility Agent shall not be obliged to consult with the Borrowers in relation to any              changes mentioned in paragraph (a) above if, in its opinion, it is not practicable to do              so in the circumstances and, in any event, shall have no obligation to agree to such              changes;         (c)   the Facility Agent may consult with the Finance Parties in relation to any changes              mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it              is not practicable to do so in the circumstances;         (d)   any such changes agreed upon by the Facility Agent and the Borrowers shall (whether              or not it is finally determined that a Disruption Event has occurred) be binding upon              the Parties as an amendment to (or, as the case may be, waiver of) the terms of the              Finance Documents notwithstanding the provisions of Clause 27 (Amendments and              Waivers);          (e)   the Facility Agent shall not be liable for any damages, costs or losses to any person,              any diminution in value or any liability whatsoever (including, without limitation for              negligence, gross negligence or any other category of liability whatsoever but not              including any claim based on the fraud of the Facility Agent) arising as a result of its              taking, or failing to take, any actions pursuant to or in connection with this              Clause 16.10; and         (f)   the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to              paragraph (d) above.   17.   REPRESENTATIONS   17.1  Representations         The representations set out in this Clause are made by each Borrower to each Finance Party on        the date of this Agreement.                                          52 

 

17.2  Status         It is a limited liability company, duly incorporated and validly existing under the Companies        Act 2006 in England and Wales.   17.3  Powers and authority         It has the power to enter into and perform, and has taken all necessary action to authorise the        entry into and performance of, the Finance Documents to which it is or will be a party and the        transactions contemplated by those Finance Documents.    17.4  Legal validity         Subject to the Legal Reservations, each Finance Document to which it is a party is its legally        binding, valid and enforceable obligation.   17.5  Non-conflict         The entry into and performance by it of, and the transactions contemplated by, the Finance        Documents do not conflict with any borrowing or other power or restriction granted or imposed        by:         17.5.1 any law or regulation applicable to it and violation of which has or is likely to have a              Material Adverse Effect; or         17.5.2 its constitutional documents.   17.6  No default         17.6.1 No Event of Default is outstanding or might reasonably be expected to result from the              making of any Loan.         17.6.2 No other event or circumstance is outstanding which constitutes a default under any              other agreement or instrument which is binding on it or any of its Subsidiaries or to              which its (or any of its Subsidiaries’) assets are subject which might have a Material              Adverse Effect.   17.7  Authorisations         All authorisations required by it (including any authorisations required under PUHCA or the        Act, if any):         17.7.1 in connection with the entry into, performance, validity and enforceability of, and the              transactions contemplated by, the Finance Documents; and         17.7.2 to make the Finance Documents admissible in evidence in England and Wales, have              been obtained or effected (as appropriate) and are in full force and effect.   17.8  Financial statements         Its audited consolidated financial statements most recently delivered to the Facility Agent        (which, at the date of this Agreement, are the Original Financial Statements):         17.8.1 have been prepared in accordance with accounting principles and practices generally              accepted in its jurisdiction of incorporation, consistently applied; and                                          53 

 

      17.8.2 fairly represent its consolidated financial condition as at the date to which they were              drawn up,         except, in each case, as disclosed to the contrary in those financial statements.    17.9  No material adverse change         Other than as disclosed in writing to the Arrangers prior to the date of this Agreement, there        has been no material adverse change in its consolidated financial condition since the date to        which the Original Financial Statements were drawn up.   17.10 Litigation         17.10.1 No litigation, arbitration or administrative proceedings are current or, to its knowledge,              pending or threatened, which are reasonably likely to be adversely determined, and if              adversely determined, could reasonably be expected to have a Material Adverse Effect.         17.10.2 No judgment or order of a court, arbitral body or agency which could reasonably be              expected to have a Material Adverse Effect has (to its knowledge) been made against              it or any of its Subsidiaries.   17.11 Winding-Up         No meeting has been convened for its winding-up and, so far as it is aware, no petition,        application or the like is outstanding for its winding-up.   17.12 Non-Violation of other Agreements:         Its entry into, exercise of its rights and/or performance of or compliance with its obligations        under this Agreement do not and will not violate, to an extent or in a manner which has or is        likely to have a Material Adverse Effect on it, any agreement to which it is a party or which is        binding on it.   17.13 Governing Law and Enforcement         17.13.1 The choice of English law as the governing law of the Finance Documents will be              recognised and enforced in its jurisdiction of incorporation.         17.13.2 Any judgement obtained in England in relation to a Finance Document will be              recognised and enforced in its jurisdiction of incorporation.   17.14 Deduction of Tax         It is not required to make any deduction for or on account of Tax from any payment it may        make under any Finance Document to a Lender which is:         17.14.1 a Qualifying Lender:               (a)   falling within paragraph (a)(i) of the definition of Qualifying Lender; or               (b)   except where a Direction has been given under section 931 of the ITA in                    relation to the payment concerned, falling within paragraph (a)(ii) of the                    definition of Qualifying Lender; or               (c)   falling within paragraph (b) of the definition of Qualifying Lender or;                                          54 

 

      17.14.2 a Treaty Lender and the payment is one specified in a direction given by the              Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation              Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).   17.15 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 or similar tax be paid on or in relation to the Finance Documents (which for        these purposes does not include a Transfer Certificate or other transfer or disposal of a Lender’s        rights or obligations under a Finance Document) or the transactions contemplated by the        Finance Documents.   17.16 No misleading information         Save as disclosed in writing to the Facility Agent and the Arrangers prior to the Signing Date:         17.16.1 any written factual information provided by any member of its Borrower Group or on              its behalf was true and accurate in all material respects as at the date of the relevant              report or document or as at the date (if any) at which it is stated to be given;         17.16.2 the financial projections provided have been prepared on the basis of recent historical              information and on the basis of reasonable assumptions as at the date provided; and         17.16.3 no event or circumstance has occurred or arisen and no information has been given or              withheld that results in the information, opinions, intentions, forecasts or projections              contained in such written information being untrue or misleading in any material              respect.   17.17 Pari Passu ranking         Its payment obligations under the Finance Documents rank at least pari passu with the claims        of all its other unsecured and unsubordinated creditors, except for obligations mandatorily        preferred by law applying to companies generally.   17.18 Licence         The Licence is in full force and effect and there is no investigation or proceeding current,        pending or threatened which could, if adversely determined, result in the termination of the        Licence.   17.19 Sanctions          17.19.1 No member of its Borrower Group or, to the knowledge of each Borrower, any director,              officer, employee, agent, Affiliate or representative of any member of its Borrower              Group:               (a)   is an individual or entity (the “Person”) currently the subject of any sanctions                    administered or enforced by the U.S. Department of Treasury’s Office of                    Foreign Assets Control (the “OFAC”), the United Nations Security Council                    (the “UNSC”), the European Union, Her Majesty’s Treasury (the “HMT”), or                    other relevant sanctions authority (collectively, “Sanctions”); or               (b)   is located, organized or resident in a country or territory that is the subject of                    country-wide or territory-wide Sanctions.                                          55 

 

      17.19.2 Each Borrower represents for itself and on behalf of other members of its Borrower              Group that no member of that Borrower Group will, directly or indirectly, use the              proceeds of the transaction, or lend, contribute or otherwise make available such              proceeds to any subsidiary, joint venture partner or other Person:               (a)   to fund any activities of or business with any Person, or in Syria, Cuba, Iran,                    North Korea, Sudan or in any other country or territory, that, at the time of such                    funding, is the subject of country-wide or territory-wide Sanctions; or                (b)   in any other manner that will result in a violation by any Person (including any                    Person participating in the transaction, whether as underwriter, advisor,                    investor or otherwise) of Sanctions.   17.20 Anti-Corruption         Each member of its Borrower Group has conducted its business in compliance with applicable        anti-corruption laws and has instituted and maintained policies and procedures designed to        promote and achieve compliance by that member of the Borrower Group with such laws.   17.21 Times for making representations         17.21.1 The representations set out in this Clause are made by each Borrower on the date of this              Agreement.         17.21.2 The Repeating Representations are deemed to be repeated by the relevant Borrower(s)              on the date of each Request and the first day of each Term.         17.21.3 When a representation is repeated, it is applied to the circumstances existing at the time              of repetition.   18.   INFORMATION COVENANTS   18.1  Financial statements         18.1.1 Each Borrower must supply to the Facility Agent (in sufficient copies for all the              Lenders if the Facility Agent so requests):               (a)   its audited consolidated financial statements for each of its financial years; and               (b)   its interim consolidated financial statements for the first half-year of each of its                    financial years.         18.1.2 All financial statements must be supplied as soon as they are available and:               (a)   in the case of each Borrower’s audited consolidated financial statements, within                    180 days; and               (b)   in the case of each Borrower’s interim financial statements, within 90 days,               of the end of the relevant financial period.                                          56 

 

18.2  Form of Financial Statement         If any financial statement delivered or to be delivered to the Facility Agent under Clause 18.1        is not to be or, as the case may be, has not been prepared in accordance with Applicable        Accounting Principles:         18.2.1 the Borrowers and the Facility Agent (acting on the instructions of the Majority              Lenders) shall, on the request of the Facility Agent or the Borrowers, negotiate in good              faith with a view to agreeing such amendments to the financial ratios and/or the              definitions of the terms used in Clause 19 (Financial covenants) as are necessary to              give the Lenders comparable protection to that contemplated at the date of this              Agreement;         18.2.2 if amendments are agreed by the Borrowers and the Majority Lenders within 25 days,              those amendments shall take effect in accordance with the terms of that agreement; and         18.2.3 if such amendments are not so agreed within 25 days, the Borrowers shall:               (a)   within 30 days after the end of that 25–day period; and               (b)   with all subsequent financial statements to be delivered to the Facility Agent                    under Clause 18.1,               deliver to the Facility Agent details of all such adjustments as need to be made to the              relevant financial statements to bring them into line with the Companies Act 2006 (as              in effect on the date of this Agreement) and Applicable Accounting Principles.   18.3  Compliance Certificate          18.3.1 Each Borrower must supply to the Facility Agent a Compliance Certificate with each              set of its financial statements sent to the Facility Agent under this Agreement.         18.3.2 Each Compliance Certificate must be signed by two directors of the relevant Borrower.   18.4  Information - miscellaneous         Each Borrower must supply to the Facility Agent, in sufficient copies for all the Lenders if the        Facility Agent so requests:         18.4.1 copies of all documents despatched by it to its creditors generally (or any class of them)              in each case at the same time as they are despatched;         18.4.2 promptly upon becoming aware of them, details of any litigation, arbitration or              administrative proceedings which are current, threatened or pending against any              member of its Borrower Group and which might, if adversely determined, have a              Material Adverse Effect;         18.4.3 promptly, details of the loss of the Licence or any communication from OFGEM or              other government agency regarding any potential or threatened loss of the Licence;          18.4.4 promptly on receiving them, details of any modification of an Authorisation or other              material regulatory notices from OFGEM or other government agency;         18.4.5 a copy of all material information relating to any matter which is reasonably likely to              have a Material Adverse Effect which it supplies to, or receives from, any applicable              regulatory body (including OFGEM) (at the same time as it is supplied to, or promptly              following its receipt from, the applicable regulatory body);                                          57 

 

      18.4.6 written notice of the details of any proposed changes to the Licence as soon as              reasonably practicable after becoming aware of the same (other than changes of a              formal, minor or technical nature);         18.4.7 within five Business Days of receiving them, details of any change to (or withdrawal              of) the ratings, by Fitch, Moody’s or Standard & Poor’s of its long-term, unsecured and              non credit-enhanced debt obligations which are relevant to the calculation of the              Margin;         18.4.8 each Borrower shall deliver to the Facility Agent at such times as those reports are              prepared in order to comply with the then current statutory or auditing requirements (as              applicable either to the trustees of any relevant schemes or to that Borrower), actuarial              reports in relation to all pension schemes mentioned in sub-clause 20.15.1 of              Clause 20.15 (Pensions). This obligation shall apply to only those pension schemes (or              groups of the Electricity Supply Pension Scheme) of which that Borrower is at that time              a participating employer and to those reports which have been provided to that              Borrower;         18.4.9 promptly on request, a list of its then current Material Subsidiaries; and         18.4.10 promptly on request, such further information regarding the financial condition,              business and operations of its Borrower Group as any Finance Party through the Facility              Agent may reasonably request.   18.5  Notification of Default         18.5.1 Each Borrower must notify the Facility Agent of any Default (and the steps, if any,              being taken to remedy it) promptly upon becoming aware of its occurrence.         18.5.2 Promptly on request by the Facility Agent, a Borrower must supply to the Facility              Agent a certificate signed by two of its directors on its behalf, certifying that no Default              is outstanding or, if a Default is outstanding, specifying the Default and the steps, if              any, being taken to remedy it.   18.6  Direct electronic delivery by the Borrowers         Each Borrower may satisfy its obligation under this Agreement to deliver any information in        relation to a Lender by delivering that information directly to that Lender in accordance with        Clause 36.5 (Electronic communication) to the extent that Lender and the Facility Agent agree        to this method of delivery.   18.7  Know your customer requirements         18.7.1 If:               (a)   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;               (b)   any change in the status of a Borrower (or of a Holding Company of a                    Borrower) after the date of this Agreement; or               (c)   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 (c) above, any              prospective new Lender) to comply with “know your customer” or similar                                         58 

 

            identification procedures in circumstances where the necessary information is not              already available to it, the relevant Borrower 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 (c) 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 (c) 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.   19.   FINANCIAL COVENANTS   19.1  Definitions         In this Clause:         “Cash” means, at any time, cash denominated in a currency of the United States of America,        the United Kingdom, any member state of the European Union or any Participating Member        State in hand or at bank and (in the latter case) credited to an account in the name of a member        of a Borrower Group with an Acceptable Bank and to which a member of that Borrower Group        is alone (or together with other members of that Borrower Group) beneficially entitled and for        so long as:         (a)   that cash is repayable:               (i)   if that cash is deposited with a Lender, within 180 days after the relevant date                    of calculation; or               (ii)  if that cash is deposited with any other lender or financial institution, within 45                    days after the relevant date of calculation;         (b)   repayment of that cash is not contingent on the prior discharge of any other              indebtedness of any member of the relevant Borrower Group or of any other person              whatsoever or on the satisfaction of any other condition;         (c)   there is no Security Interest over that cash other than Security Interests permitted under              sub-clause 20.5.3(k) of Clause 20.5 (Negative pledge); and         (d)   the cash is freely and (except as mentioned in paragraph (a) above) immediately              available to be applied in repayment or prepayment of the relevant Facility.         “Cash Equivalent Investments” means at any time:         (a)   certificates of deposit maturing within one year after the relevant date of calculation              and issued by an Acceptable Bank;         (b)   any investment in marketable debt obligations issued or guaranteed by the government              of an Acceptable Jurisdiction or by an instrumentality or agency of any of them having              an equivalent credit rating, maturing within one year after the relevant date of              calculation and not convertible or exchangeable to any other security;         (c)   commercial paper not convertible or exchangeable to any other security:               (i)   for which a recognised trading market exists;               (ii)  issued by an issuer incorporated in an Acceptable Jurisdiction;                                         59 

 

      (iii) which matures within one year after the relevant date of calculation; and         (iv)  which has a credit rating of either A-l or higher by Standard & Poor’s Rating              Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s              Investor Services Limited, or, if no rating is available in respect of the              commercial paper, the issuer of which has, in respect of its long-term unsecured              and non-credit enhanced debt obligations, an equivalent rating;   (d)   sterling bills of exchange eligible for rediscount at the Bank of England (or their        dematerialised equivalent) and accepted by an Acceptable Bank;   (e)   any investment in money market funds which:         (i)   have a credit rating of either A-l or higher by Standard & Poor’s Rating              Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s              Investor Services Limited;         (ii)  which invest substantially all their assets in securities of the types described in              paragraphs (a) to (d) above; and         (iii) can be turned into cash on not more than 30 days’ notice; or   (f)   any other debt security approved by the Majority Lenders,   in each case, denominated in a currency of an Acceptable Jurisdiction and to which any member  of a Borrower Group is alone (or together with other members of that Borrower Group  beneficially entitled at that time and which is not issued or guaranteed by any member of that  Borrower Group or subject to any Security Interest (other than Security Interests permitted  under sub-clauses 20.5.3(l) and (k) of Clause 20.5 (Negative pledge)).   “Consolidated EBITDA” means the consolidated net pre-taxation profits of a Borrower Group  for a Measurement Period as adjusted by:   (a)   adding back Interest Payable with respect to that Borrower Group;   (b)   taking no account of any exceptional or extraordinary item;   (c)   excluding any amount attributable to minority interests;   (d)   adding back depreciation and amortisation; and   (e)   taking no account of any revaluation of an asset or any loss or gain over book value        arising on the disposal of an asset (otherwise than in the ordinary course of trading) by        a member of that Borrower Group during that Measurement Period.   “Interest Payable” means, in relation to any Measurement Period, all interest payable and  similar charges of a Borrower Group expressed in the Base Currency and determined on a  consolidated basis in accordance with Applicable Accounting Principles but excluding interest  payable or similar charges of that Borrower Group in relation to intra-Borrower Group items,  loans from Affiliates and shareholder loans to the extent that such intra-Borrower Group items,  loans from Affiliates and/or shareholder loans are subordinated on the terms set out in a  Subordination Deed.   “Measurement Period” means each period of 12 months ending on 31 March or 30 September.   “Regulatory Asset Base” means at any date, the regulatory asset base of a Borrower for such  date as last determined and notified to that Borrower by OFGEM (interpolated as necessary and                                    60 

 

      adjusted for additions to the regulatory asset base and adjusted as appropriate for out-turn        inflation / regulatory depreciation).         “Total Net Debt” means, at any time, the consolidated Financial Indebtedness of a Borrower        Group which is required to be accounted for as debt in the consolidated annual financial        statements of that Borrower Group less the aggregate at such time of all Cash or Cash        Equivalent Investments held by any member of that Borrower Group excluding intra-Borrower        Group items, loans from Affiliates and shareholder loans to the extent that such intra-Borrower        Group items, loans from Affiliates and/or shareholder loans are subordinated on the terms set        out in a Subordination Deed.   19.2  Interpretation         19.2.1 Except as provided to the contrary in this Agreement, an accounting term used in this              Clause is to be construed in accordance with the principles applied in connection with              the Original Financial Statements.         19.2.2 Any amount in a currency other than the Base Currency is to be taken into account at              its Base Currency equivalent calculated on the basis of:               (a)   the Agent’s Spot Rate of Exchange on the day the relevant amount falls to be                    calculated; or               (b)   if the amount is to be calculated on the last day of a financial period of a                    Borrower, the relevant rates of exchange used by that Borrower in, or in                    connection with, its financial statements for that period.         19.2.3 No item must be credited or deducted more than once in any calculation under this              Clause.         19.2.4 For the avoidance of doubt and notwithstanding anything to the contrary in this              Agreement, any calculation under Clause 19.3 (Interest Cover) and Clause 19.4 (Asset              Cover) with respect to a certain Borrower shall be calculated using only the financial              information applicable to that Borrower and its Borrower Group.   19.3  Interest cover         Each Borrower, under its respective Facility, must ensure that the ratio of Consolidated        EBITDA to Interest Payable is not, on the last day of each Measurement Period, less than 3 to        1.   19.4  Asset Cover         Each Borrower, under its respective Facility, must ensure that on the last day of each        Measurement Period, Total Net Debt does not exceed 85% of its Regulatory Asset Base.   20.   GENERAL COVENANTS   20.1  General         Each Borrower agrees to be bound by the covenants set out in this Clause relating to it and,        where the covenant is expressed to apply to each of its Material Subsidiaries or each member        of its Borrower Group, the relevant Borrower must ensure that each of its Material Subsidiaries        or each of its Subsidiaries, as the case may be, performs that covenant.                                          61 

 

20.2  Authorisations         Each Borrower must promptly obtain, maintain and comply with the terms of any authorisation        required under any law or regulation to enable it to perform its obligations under, or, subject to        the Legal Reservations, for the validity or enforceability of, any Finance Document.   20.3  Compliance with laws         Each member of each Borrower Group must comply in all respects with all laws to which it is        subject where failure to do so would materially impair its ability to perform its obligations under        the Finance Documents.   20.4  Pari passu ranking         Each Borrower must ensure that its payment obligations under the Finance Documents rank at        least pari passu with all its other present and future unsecured payment obligations, except for        obligations mandatorily preferred by law applying to companies generally.   20.5  Negative pledge         In this Clause 20.5, “Quasi-Security Interest” means an arrangement or transaction described        in sub-clause 20.5.2 below.         20.5.1 Except as provided below, neither a Borrower nor any of its Material Subsidiaries may              create or allow to exist any Security Interest or Quasi-Security Interest on any of its              assets.         20.5.2 Except as provided below, neither a Borrower nor any of its Material Subsidiaries may:               (a)   sell, transfer or otherwise dispose of any of its assets on terms whereby they                    are or may be leased to or re-acquired by that Borrower or any Material                    Subsidiary of that Borrower;               (b)   sell, transfer or otherwise dispose of any of its receivables on recourse terms;               (c)   enter into any arrangement under which money or the benefit of a bank or other                    account may be applied, set-off or made subject to a combination of accounts;                    or               (d)   enter into any other preferential arrangement having a similar effect,                in circumstances where the arrangement or transaction is entered into primarily as a              method of raising Financial Indebtedness or of financing the acquisition of an asset.         20.5.3 Sub-clauses 20.5.1 and 20.5.2 do not apply to:               (a)   any lien arising by operation of law and in the ordinary course of trading;               (b)   any netting or set-off arrangement entered into by a Borrower in the ordinary                    course of its banking arrangements for the purpose of netting debit and credit                    balances of members of its Borrower Group;               (c)   any Security Interest or Quasi-Security Interest created under or in connection                    with or arising out of the Balancing and Settlement Code or any transactions or                    arrangements entered into in connection with the management of risks relating                    thereto;                                          62 

 

(d)   in respect of overdue amounts which have not been overdue for more than 30        days and/or are being contested in good faith, liens arising solely by operation        of law or by order of a court or tribunal (or by an agreement of similar effect)        and/or in the ordinary course of day to day business or operations;   (e)   any Security Interest or Quasi-Security Interest arising out of title retention        provisions in a supplier’s standard conditions of supply of goods acquired in        the ordinary course of business or operations;   (f)   any Security Interest or Quasi-Security Interest created on any asset acquired        after the date of this Agreement for the sole purpose of financing or        re-financing that acquisition and securing a principal, capital or nominal        amount not exceeding the cost of that acquisition, provided that the Security        Interest or Quasi-Security Interest is removed or discharged within 6 months of        the date of acquisition of such asset;   (g)   any Security Interest or Quasi-Security Interest outstanding on or over any asset        acquired after the date of this Agreement and in existence at the date of such        acquisition, provided that the Security Interest or Quasi-Security Interest is        removed or discharged within six months of the date of acquisition of such        asset;   (h)   any Security Interest or Quasi-Security Interest created or outstanding on or        over any asset of any company which becomes a Material Subsidiary of the        relevant Borrower after the date of this Agreement where such Security Interest        or Quasi-Security Interest is created prior to the date on which such company        becomes a Material Subsidiary of that Borrower and is not created or increased        in contemplation of such company being acquired and/or becoming a Material        Subsidiary of that Borrower and the Security Interest or Quasi-Security Interest        is removed or discharged within six months of the date of such company        becoming a Material Subsidiary of that Borrower;   (i)   any Quasi-Security Interest arising as a result of a disposal which is a disposal        permitted under sub-clause 20.6.2;   (j)   any netting arrangements under any swap or other hedging transaction which        is on standard market terms;   (k)   any Security Interest or Quasi-Security Interest over bank accounts of a        Borrower in favour of the account holding bank with whom it maintains a        banking relationship in the ordinary course of trade and granted as part of that        bank’s standard terms and conditions;   (l)   any Security Interest or Quasi-Security Interest created or outstanding with the        prior approval of the Majority Lenders; and   (m)   any Security Interest or Quasi-Security Interest created or outstanding on or        over assets of each Borrower or any of its Material Subsidiaries provided that        the aggregate outstanding principal or nominal amount secured by all Security        Interests and Quasi-Security Interest created or outstanding under this        exception on or over such assets shall not at any time exceed £25,000,000 or        its equivalent in respect of any Borrower Group.                              63 

 

20.6  Disposals         20.6.1 Except as provided below, no member of a Borrower Group may, either in a single              transaction or in a series of transactions and whether related or not, dispose of all or              any part of its assets (other than cash) where the higher of the market value and the net              consideration receivable (when aggregated with the higher of the market value and the              net consideration receivable from any previous disposal by members of that Borrower              Group) exceeds £5,000,000 (or its equivalent) in total during the term of this Agreement              in respect of any Borrower Group.         20.6.2 Sub-clause 20.6.1 does not apply to:               (a)   any disposal made in the ordinary course of day to day business or operations                    of the disposing entity (including, without limitation, disposals of subsidiaries                    or lines of business, provided that this shall not include a disposal of the core                    electricity distribution business);               (b)   disposals on normal commercial terms of obsolete assets or assets no longer                    required for the purpose of the relevant Person’s business or operations;               (c)   any realisation of investments acquired, purchased or made by the temporary                    application of funds not immediately required in the relevant Person’s business                    or operations;               (d)   the exchange of assets for other assets of a similar or superior nature and value                    (other than an exchange of a non-cash asset for cash), or the sale of assets on                    normal commercial terms for cash which is payable in full on the completion                    of the sale and is to be, and is, applied in or towards the purchase of similar                    assets within 12 months of that disposal (or, if contractually committed to be                    used within 12 months, are actually used within 18 months of that disposal);               (e)   the disposal of assets by one wholly-owned Subsidiary of a Borrower to another                    of its wholly-owned Subsidiaries or (if the consideration for the disposal does                    not exceed a normal commercial consideration) to a Borrower by one of its                    Subsidiaries;               (f)   disposals in connection with sale-and-leaseback or sale and repurchase                    transactions or any other form of “off balance sheet” financing, provided that                    the aggregate book value (in the books of the disposing party) of all assets the                    subject of all such disposals made during the period commencing on the date                    of this Agreement and ending on the date when no amount remains to be lent                    or remains payable under this Agreement shall not exceed £50,000,000 in                    respect of any Borrower Group;               (g)   any disposal which the Majority Lenders shall have agreed shall not be taken                    into account;               (h)   arising as a result of any Security Interest or Quasi-Security Interest permitted                    under sub-clause 20.5.3 above;               (i)   the application or disposal of cash not otherwise prohibited under the Finance                    Documents;               (j)   any disposal by a member of a Borrower Group compulsorily required by law                    or regulation having the force of law or any order of any government entity                                          64 

 

                  made thereunder and having the force of law provided that and to the extent                    permitted by such law or regulation:                     (i)    such disposal is made for fair market value; and                     (ii)   such disposal does not have a Material Adverse Effect.   20.7  Environmental matters         20.7.1 Each Borrower will and will ensure that its Material Subsidiaries will comply with all              applicable Environmental Law and other regulations, orders or other law applicable to              the conduct of the business of the supply or distribution of electricity, in each case,              where failure to do so would have a Material Adverse Effect.         20.7.2 Each Borrower will, promptly upon becoming aware of the same, inform the Facility              Agent in writing of:               (a)   any Environmental Claim against any member of its Borrower Group which is                    current, pending or threatened; and               (b)   any facts or circumstances which are reasonably likely to result in any                    Environmental Claim being commenced or threatened against any member of                    its Borrower Group,                where the claim, if determined against that member of the Borrower Group, would have              a Material Adverse Effect.   20.8  Insurance         Each member of a Borrower Group must insure its business and assets with insurance        companies to such an extent and against such risks as that member of the Borrower Group        reasonably considers to be appropriate, having regard to the insurance arrangements of        companies engaged in similar business.   20.9  Merger         20.9.1 No Borrower shall enter into any amalgamation, demerger, merger or corporate              reconstruction.         20.9.2 Clause 20.9.1 above shall not apply to any sale, lease, transfer or other disposal              permitted pursuant to Clause 20.6 (Disposals).   20.10 Change of business         Each Borrower shall procure that no substantial change is made to the general nature of the        business of that Borrower or its Borrower Group from that carried on at the date of this        Agreement.   20.11 Acquisitions         20.11.1 Except as provided below, no Borrower or any of its Material Subsidiaries may acquire              a company or any shares or securities or a business or undertaking (or, in each case,              any interest in any of them).                                          65 

 

      20.11.2 Provided that no Event of Default is outstanding on the date of the acquisition and none              would occur as a result of the acquisition, sub-clause 20.11.1 does not apply to:               (a)   an acquisition by a member of a Borrower Group of an asset sold, leased,                    transferred or otherwise disposed of by another member of that Borrower                    Group as permitted under sub-clause 20.6.2 of Clause 20.6 (Disposals) above;               (b)   an acquisition where the consideration (including associated costs and                    expenses) for the acquisition (when aggregated with the consideration                    (including associated costs and expenses) for any other acquisition permitted                    under this paragraph) during the term of this Agreement does not exceed 2.5%                    of the sum of the issued share capital, share premium and consolidated reserves                    (including retained earnings) of the relevant Borrower, as shown by its most                    recent audited consolidated financial statements; and               (c)   any acquisition which the Majority Lenders shall have consented to in writing.   20.12 Prohibition on the Debt Purchase Transactions          No Borrower shall, and each Borrower shall procure that each other member of its Borrower        Group shall not, enter into any Debt Purchase Transaction or beneficially own all or any part of        the share capital of a company that is a Lender or a party to a Debt Purchase Transaction of the        type referred to in paragraphs (b) and (c) of the definition of Debt Purchase Transaction.   20.13 Prohibition on Subsidiary Financial Indebtedness         Each Borrower shall procure that no member of its Borrower Group (other than that Borrower)        will incur or allow to remain outstanding any Financial Indebtedness unless the relevant        member of its Borrower Group is a special purpose vehicle incorporated solely for the purpose        of incurring such Financial Indebtedness and which does not undertake any other activities.   20.14 Arm’s-length transactions         No Borrower shall (and each Borrower shall ensure that no member of its Borrower Group will)        enter into any transaction with any person except on arm’s-length terms and for full market        value, unless to do so would be in contravention of the Licence, provided that if, at any time,        the Licence is not in effect, no Borrower shall (and each Borrower shall ensure no member of        its Borrower Group will) enter into any transaction with any person except on arm’s-length        terms and for full market value.   20.15 Pensions         20.15.1 Each Borrower shall ensure that no action or omission is taken by any member of its              Borrower Group in relation to a pension scheme which has or is reasonably likely to              have a Material Adverse Effect (including, without limitation, the termination or              commencement of winding-up proceedings of any such pension scheme).         20.15.2 Except for in respect of WPDSWa of the Western Power Utilities Pension Scheme and              the Infralec 92 Scheme, the WPD Group of the Electricity Supply Pension Scheme (and              in the case of merger, the CN Group of the ESPS) each Borrower shall ensure that no              member of its Borrower Group is an employer (for the purposes of sections 38 to 51 of              the Pensions Act 2004) of an occupational pension scheme which is not a money              purchase scheme (both terms as defined in the Pension Schemes Act 1993) or              “connected” with or an “associate” of (as those terms are used in sections 38 or 43 of              the Pensions Act 2004) such an employer.                                          66 

 

      20.15.3 Each Borrower shall promptly notify the Facility Agent of any material change in the              rate of contributions payable to any of the pension schemes mentioned in              sub-clause 20.15.2 above paid or required (by law or otherwise).         20.15.4 Each Borrower shall immediately notify the Facility Agent of any investigation or              proposed investigation by the Pensions Regulator which may lead to the issue of a              Financial Support Direction or a Contribution Notice to any member of its Borrower              Group.         20.15.5 Each Borrower shall immediately notify the Facility Agent if it receives a Financial              Support Direction or a Contribution Notice from the Pensions & Regulator.   20.16 Licence          Each Borrower will at all times:         20.16.1 comply with the terms of the Licence in all material respects;         20.16.2 without prejudice to the generality of sub-clause 20.16.1 above, comply with the ring              fencing provisions of the Licence in all respects; and         20.16.3 not take any action or make any omission which is reasonably likely to result in the              revocation or termination of the Licence.   20.17 Investment Grade Rating         Each Borrower shall procure that its long-term, unsecured and non credit-enhanced debt        obligations shall be rated Baa3/BBB-, or such higher rating as required by the Licence, or        above, by at least one of Fitch, Moody’s and Standard and Poor’s and shall not be rated below        Baa3/BBB-, or such higher rating as required by the Licence, by any of Fitch, Moody’s or        Standard and Poor’s.   20.18 Sanctions         20.18.1 No Borrower, nor any other member of its Borrower Group, shall be the subject of any              sanctions administered or enforced by the U.S. Department of Treasury’s Office of              Foreign Assets Control (the “OFAC”), the United Nations Security Council (the              “UNSC”), the European Union, Her Majesty’s Treasury (the “HMT”), or other relevant              sanctions authority (collectively, “Sanctions”), and no member of a Borrower Group              shall be located, organized or resident in a country or territory that is the subject of              country-wide or territory-wide Sanctions.         20.18.2 Each Borrower undertakes that no member of its Borrower Group will, directly or              indirectly, use the proceeds of the transaction, or lend, contribute or otherwise make              available such proceeds to any subsidiary, joint venture partner or other individual or              entity (the “Person”):               (a)   to fund any activities of or business with any Person, or in Syria, Cuba, Iran,                    North Korea, Sudan or in any other country or territory, that, at the time of such                    funding, is the subject of country-wide or territory-wide Sanctions; or                (b)   in any other manner that will result in a violation by any Person (including any                    Person participating in the transaction, whether as underwriter, advisor,                    investor or otherwise) of Sanctions.         20.18.3 Each Borrower shall ensure that the source of any funds for discharging its obligations              under this Agreement is not obtained from any designated target of any Sanctions or                                         67 

 

            any of Syria, Cuba, Iran, North Korea, Sudan or any other country or territory, that, at              the time of such payment, is the subject of country-wide or territory-wide Sanctions.         20.18.4 Any provision of this Clause 20.18 or Clause 17.19 (Sanctions) shall not apply to or in              favour of any person if and to the extent that it would result in a breach, by or in respect              of that person, of any applicable Blocking Law.         20.18.5 For the purposes of this Clause 20.18, “Blocking Law” means:               (a)   any provision of Council Regulation (EC) No 2271/1996 of 22 November 1996                    (or any law or regulation implementing such Regulation in any member state                    of the European Union or the U.K.);               (b)   section 7 of the German Foreign Trade Regulation                    (Außenwirtschaftsverordnung); or               (c)   any similar blocking or anti-boycott law in the U.K.   20.19 Anti-Corruption         20.19.1 No Borrower shall (and each Borrower shall ensure that no other member of its              Borrower Group will) use the proceeds, or cause or permit the proceeds of any Loan to              be used, directly or indirectly, in any way that would be in breach of applicable              anti-corruption laws.          20.19.2 Each Borrower shall (and shall ensure that each other member of its Borrower Group              will):               (a)   conduct its businesses in compliance with applicable anti-corruption laws; and               (b)   maintain policies and procedures designed to promote and achieve compliance                    with such laws.   20.20 FSMA         Each Borrower shall promptly notify the Facility Agent if it is or becomes a relevant financial        institution (an “RFI”) as defined in The Financial Services and Markets Act 2000 (Excluded        Activities and Prohibitions) Order 2014 (EAPO) and the date on which it became an RFI.   21.   DEFAULT   21.1  Events of Default         Each of the events set out in this Clause is an Event of Default.   21.2  Non-payment         A Borrower fails to pay any sum payable under any Finance Document when due unless its        failure to pay is caused by:               (a)   administrative or technical error; or               (b)   a Disruption Event,         and payment is made within five Business Days of its due date.                                          68 

 

21.3  Breach of other obligations         21.3.1 A Borrower does not perform or comply with its obligations under Clause 19              (Financial Covenants), Clause 20.5 (Negative pledge), Clause 20.6 (Disposals) or              Clause 20.11 (Acquisitions).         21.3.2 A Borrower does not perform or comply with any of its obligations, other than those              described in sub-clause 21.3.1 above, under any Finance Document or any              representation or warranty by that Borrower in this Agreement or in any document              delivered under it is or proves to have been incorrect when made or deemed repeated,              unless the non-compliance or circumstances giving rise to the misrepresentation, as the              case may be, is capable of remedy and is not remedied within 20 Business Days of the              earlier of the Facility Agent giving notice requiring the same to be remedied and that              Borrower becoming aware of such non-compliance or misrepresentation, as the case              may be.   21.4  Cross-default         21.4.1 Subject to Clause 21.15.2:                (a)   any Financial Indebtedness (excluding intra-Borrower Group Financial                    Indebtedness and any shareholder loans) of any member of a Borrower Group                    is not paid when due nor within any originally applicable grace period.               (b)   any Financial Indebtedness (excluding intra-Borrower Group Financial                    Indebtedness and any shareholder loans) of any member of a Borrower Group                    is declared to be or otherwise becomes due and payable prior to its specified                    maturity as a result of an event of default (however described).                (c)   any commitment for any Financial Indebtedness (excluding intra-Borrower                    Group Financial Indebtedness and any shareholder loans) of any member of a                    Borrower Group is cancelled or suspended by a creditor of that member of that                    Borrower Group as a result of an event of default (however described).               (d)   any creditor of any member of a Borrower Group becomes entitled to declare                    any Financial Indebtedness (excluding intra-Borrower Group Financial                    Indebtedness and any shareholder loans) of any member of that Borrower                    Group due and payable prior to its specified maturity as a result of an event of                    default (however described).         21.4.2 No Event of Default will occur under this Clause 21.4 unless and until the aggregate              amount of such Financial Indebtedness falling within Clause 21.4.1 above is more than              £20,000,000 or its equivalent in any other currency or currencies in respect of any              Borrower Group.   21.5  Insolvency         21.5.1 Any of the following occurs in respect of a Borrower:               (a)   it is unable to pay its debts generally as they fall due or it is deemed by a court                    of competent jurisdiction to be insolvent;               (b)   it suspends making payments on all or any class of its debts or publicly                    announces an intention to do so;                                          69 

 

            (c)   by reason of actual or anticipated financial difficulties, it begins negotiations                    with all or any class of its creditors for the general rescheduling of its                    indebtedness; or               (d)   a moratorium is declared in respect of any of its indebtedness.         21.5.2 If a moratorium occurs in respect of a Borrower, the ending of the moratorium will not              remedy any Event of Default caused by the moratorium.   21.6  Insolvency proceedings         21.6.1 Except as provided below, any of the following occurs in respect of a Borrower:               (a)   a suspension of payments, a moratorium of any indebtedness or a                    reorganisation (by way of voluntary arrangement, scheme of arrangement or                    otherwise);               (b)   any person presents a petition for its winding-up, administration or dissolution;               (c)   an order for its winding-up, administration or dissolution is made;               (d)   any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,                    receiver, administrative receiver, administrator or similar officer is appointed                    in respect of it or any of its assets;                (e)   its directors or other officers request the appointment of a liquidator, trustee in                    bankruptcy, judicial custodian, compulsory manager, receiver, administrative                    receiver, administrator or similar officer;               (f)   enforcement of any Security Interest over any of its assets; or               (g)   any other analogous step or procedure is taken in any jurisdiction.         21.6.2 Sub-clause 21.6.1 does not apply to:               (a)   a petition for winding-up presented by a creditor which is being actively                    contested in good faith and with due diligence and with a reasonable prospect                    of success; or               (b)   a voluntary solvent winding-up, amalgamation, reconstruction or                    reorganisation or otherwise part of a solvent scheme of arrangement, in each                    case which is on terms approved by the Majority Lenders.   21.7  Creditors’ process         A distress, attachment, execution or other legal process material in relation to a Borrower’s        ability to perform its payment obligations under this Agreement is levied, enforced or sued out        on or against the assets of that Borrower. No Event of default will occur under this Clause if        the distress, attachment, execution or other legal process is being contested in good faith and        with due diligence and is discharged within 30 days.                                          70 

 

21.8  Licence         Either:         21.8.1 notice is given to revoke or terminate the Licence unless such termination is being              contested in good faith and such notice is revoked or cancelled within 14 days of notice              being given; or         21.8.2 the Licence is revoked,         in either case, other than in circumstances which permit a Borrower or its Subsidiaries to carry        on the distribution business of that Borrower either without a licence as a result of any change        in the Act or regulatory regime or with a new licence, permitting the distribution of electricity        in the authorised areas covered by the Licence, issued under the Act or pursuant to the Utilities        Act, 2000.   21.9  Balancing and Settlement Code         21.9.1 A Borrower ceases to be a party to the Balancing and Settlement Code Framework              Agreement other than in circumstances where that Borrower is able to carry on its              distribution business; or         21.9.2 a Borrower breaches the Balancing and Settlement Code and such breach has or is              reasonably likely to have a Material Adverse Effect.   21.10 Unlawfulness and invalidity          21.10.1 It is or becomes unlawful for a Borrower to perform any of its obligations under the              Finance Documents in any material respect.         21.10.2 Any obligation or obligations of a Borrower under any Finance Documents are not              (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable              and the cessation individually or cumulatively materially and adversely affects the              interests of the Lenders under the Finance Documents.   21.11 Cessation of business         A Borrower suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or        a material part of its business except as a result of a disposal permitted by Clause 20.6        (Disposals).   21.12 Repudiation and rescission of agreements         A Borrower (or any other relevant party other than a Finance Party) rescinds or purports to        rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to        rescind or repudiate a Finance Document.   21.13 Ownership of other Borrower Group companies         A Borrower ceases to own (directly or indirectly) 100% of the shares in any of its Subsidiaries:               (a)   which is engaged in the core electricity distribution business; or               (b)   in respect of which it has any actual or contingent financial obligations other                    than as a result of a solvent liquidation or reorganisation so long as any                    payments or assets distributed as a result of such solvent liquidation or                                          71 

 

                  reorganisation are distributed to other members of the relevant Borrower                    Group.   21.14 Material Adverse Effect         Any event or circumstance occurs which has or is reasonably likely to have a Material Adverse        Effect.   21.15 Acceleration         21.15.1 If an Event of Default is outstanding, the Facility Agent may, and must if so instructed              by the Majority Lenders, by notice to the relevant Borrower:               (a)   cancel the relevant Available Commitments of each Lender whereupon such                    Available Commitment shall immediately be cancelled and the relevant                    Facility shall immediately cease to be available for further utilisation; and/or               (b)   declare that all or part of any amounts outstanding under the Finance                    Documents are:                     (i)    immediately due and payable; and/or                     (ii)   payable on demand by the Facility Agent acting on the instructions of                           the Majority Lenders.                      Any notice given under this sub-clause will take effect in accordance with its                    terms.         21.15.2 Notwithstanding any other provisions of this Agreement, any Default or Event of              Default in relation to a Borrower or any member of its Borrower Group shall not:               (a)   constitute a Default or Event of Default; or               (b)   have the effect of cross-Default pursuant to Clause 21.4,               in each case, in respect of any other Borrower or member of its Borrower Group (unless              a Default or Event of Default has separately arisen with respect to that other Borrower              or such other Borrower’s Borrower Group in its own right).         21.15.3 Any acceleration pursuant to this Clause 21.15 shall only apply to such defaulting              Borrower or member of its Borrower Group and not to any other Borrower or member              of such Borrower’s Borrower Group (unless a Default or Event of Default has              separately arisen with respect to that other Borrower or such Borrower’s Borrower              Group in its own right).   22.   ROLE OF THE FACILITY AGENT, THE ARRANGER AND THE REFERENCE        BANKS   22.1  Appointment of the Facility Agent         22.1.1 Each of the Arrangers and the Lenders irrevocably appoints the Facility Agent to act as              its agent under and in connection with the Finance Documents.         22.1.2 Each of the Arrangers and the Lenders irrevocably authorises the Facility Agent to:               (a)   perform the duties, obligations and responsibilities and to exercise the rights,                    powers, authorities and discretions that are specifically given to the Facility                                          72 

 

                  Agent under or in connection with the Finance Documents, together with any                    other incidental rights, powers and discretions; and               (b)   execute each Finance Document expressed to be executed by the Facility                    Agent.   22.2  Instructions         22.2.1 The Facility Agent shall:               (a)   unless a contrary indication appears in a Finance Document, exercise or refrain                    from exercising any right, power, authority or discretion vested in it as Facility                    Agent in accordance with any instructions given to it by:                     (i)    all Lenders if the relevant Finance Document stipulates the matter is an                           all Lender decision; and                     (ii)   in all other cases, the Majority Lenders; and               (b)   not be liable for any act (or omission) if it acts (or refrains from acting) in                    accordance with paragraph (a) above.         22.2.2 The Facility Agent shall be entitled to request instructions, or clarification of any              instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates              the matter is a decision for any other Lender or group of Lenders, from that Lender or              group of Lenders) as to whether, and in what manner, it should exercise or refrain from              exercising any right, power, authority or discretion. The Facility Agent may refrain              from acting unless and until it receives any such instructions or clarification that it has              requested.         22.2.3 Save in the case of decisions stipulated to be a matter for any other Lender or group of              Lenders under the relevant Finance Document and unless a contrary indication appears              in a Finance Document, any instructions given to the Facility Agent by the Majority              Lenders shall override any conflicting instructions given by any other Parties and will              be binding on all Finance Parties.         22.2.4 The Facility Agent may refrain from acting in accordance with any instructions of any              Lender or group of Lenders until it has received any indemnification and/or security              that it may in its discretion require (which may be greater in extent than that contained              in the Finance Documents and which may include payment in advance) for any cost,              loss or liability which it may incur in complying with those instructions.         22.2.5 In the absence of instructions, the Facility Agent may act (or refrain from acting) as it              considers to be in the best interest of the Lenders.         22.2.6 The Facility 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.   22.3  Duties of the Facility Agent         22.3.1 The Facility Agent has only those duties which are expressly specified in the Finance              Documents. Those duties are solely of a mechanical and administrative nature.         22.3.2 Subject to clause 22.3.3 below, the Facility Agent shall promptly forward to a Party the              original or a copy of any document which is delivered to the Facility Agent for that              Party by any other Party.                                         73 

 

      22.3.3 Without prejudice to Clause 29.9 (Copy of Transfer Certificate, Assignment Agreement              or Increase Confirmation to the Borrowers), clause 22.3.3 above shall not apply to any              Transfer Certificate, any Assignment Agreement or any Increase Confirmation.         22.3.4 Except where a Finance Document specifically provides otherwise, the Facility Agent              is not obliged to review or check the adequacy, accuracy or completeness of any              document it forwards to another Party.         22.3.5 If the Facility 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.         22.3.6 If the Facility Agent is aware of the non-payment of any principal, interest, commitment              fee or other fee payable to a Finance Party (other than the Facility Agent or the              Arranger) under this Agreement it shall promptly notify the other Finance Parties.         22.3.7 The Facility Agent shall have only those duties, obligations and responsibilities              expressly specified in the Finance Documents to which it is expressed to be a party (and              no others shall be implied).   22.4  Role of the Arrangers         Except as specifically provided in the Finance Documents, the Arranger has no obligations of        any kind to any other Party in connection with any Finance Document.   22.5  No fiduciary duties         22.5.1 Nothing in any Finance Documents makes an Administrative Party a trustee or              fiduciary for any other Party or any other person.          22.5.2 No Administrative Party 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.   22.6  Business with Borrower Groups         No Administrative Party may accept deposits from, lend money to and generally engage in any        kind of banking or other business with any member of a Borrower Group.   22.7  Rights and discretions         22.7.1 The Facility Agent may:               (a)   rely on any representation, communication, notice or document believed by it                    to be genuine, correct and appropriately authorised;               (b)   assume that:                     (i)    any instructions received by it from the Majority Lenders, any Lenders                           or any group of Lenders are duly given in accordance with the terms of                           the Finance Documents; and                     (ii)   unless it has received notice of revocation, that those instructions have                           not been revoked; and               (c)   rely on a certificate from any person:                                          74 

 

            (i)    as to any matter of fact or circumstance which might reasonably be                     expected to be within the knowledge of that person; or               (ii)   to the effect that such person approves of any particular dealing,                     transaction, step, action or thing,               as sufficient evidence that that is the case and, in the case of paragraph (i)               above, may assume the truth and accuracy of that certificate.   22.7.2 The Facility Agent may assume (unless it has received notice to the contrary in its        capacity as agent for the Lenders) that:         (a)   no Default has occurred (unless it has actual knowledge of a Default arising              under Clause 21.2 (Non-payment)); and         (b)   any right, power, authority or discretion vested in any Party or any group of              Lenders has not been exercised.   22.7.3 The Facility Agent may engage and pay for the advice or services of any lawyers,        accountants, tax advisers, surveyors or other professional advisers or experts.   22.7.4 Without prejudice to the generality of sub-clause 22.7.3 above or sub-clause 22.7.5        below, the Facility Agent may at any time engage and pay for the services of any        lawyers to act as independent counsel to the Facility Agent (and so separate from any        lawyers instructed by the Lenders) if the Facility Agent in its reasonable opinion deems        this to be necessary.   22.7.5 The Facility Agent may rely on the advice or services of any lawyers, accountants, tax        advisers, surveyors or other professional advisers or experts (whether obtained by the        Facility Agent or by any other Party) and shall not be liable for any damages, costs or        losses to any person, any diminution in value or any liability whatsoever arising as a        result of its so relying.   22.7.6 The Facility Agent may act in relation to the Finance Documents through its officers,        employees and agents.   22.7.7 Unless a Finance Document expressly provides otherwise the Facility Agent may        disclose to any other Party any information it reasonably believes it has received as        agent under this Agreement.   22.7.8 Notwithstanding any other provision of any Finance Document to the contrary, no        Administrative Party 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.   22.7.9 Notwithstanding any provision of any Finance Document to the contrary, the Facility        Agent is not obliged to expend or risk its own funds or otherwise incur any financial        liability in the performance of its duties, obligations or responsibilities or the exercise        of any right, power, authority or discretion if it has grounds for believing the repayment        of such funds or adequate indemnity against, or security for, such risk or liability is not        reasonably assured to it.                                    75 

 

22.8  Responsibility for documentation         22.8.1 No Administrative Party is responsible or liable for:               (a)   the adequacy, accuracy or completeness of any information (whether oral or                    written) supplied by the Facility Agent, the Arranger, any Borrower or any                    other person in or in connection with any Finance Document or the transactions                    contemplated in 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;               (b)   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, under or in connection with any Finance                    Document; or               (c)   any determination as to whether any information provided or to be provided to                    any Finance Party is non-public information the use of which may be regulated                    or prohibited by applicable law or regulation relating to insider dealing or                    otherwise.   22.9  No duty to monitor         The Facility Agent shall not be bound to enquire:         22.9.1 whether or not any Default has occurred;          22.9.2 as to the performance, default or any breach by any Party of its obligations under any              Finance Document; or         22.9.3 whether any other event specified in any Finance Document has occurred.   22.10 Exclusion of liability         22.10.1 Without limiting sub-clause 22.10.2 below (and without prejudice to any other              provision of any Finance Document excluding or limiting the liability of the Facility              Agent), the Facility Agent will not be liable for:               (a)   any damages, costs or losses to any person, any diminution in value, or any                    liability whatsoever arising as a result of taking or not taking any action under                    or in connection with any Finance Document, unless directly caused by its                    gross negligence or wilful misconduct;               (b)   exercising, or not exercising, any right, power, authority or discretion given to                    it by, or in connection with, any Finance Document or any other agreement,                    arrangement or document entered into, made or executed in anticipation of,                    under or in connection with, any Finance Document, other than by reason of its                    gross negligence or wilful misconduct; or               (c)   without prejudice to the generality of paragraphs (a) and (b) above, any                    damages, costs or losses to any person, any diminution in value or any liability                    whatsoever (including, without limitation, for negligence or any other category                    of liability whatsoever but not including any claim based on the fraud of the                    Facility Agent) arising as a result of:                     (i)    any act, event or circumstance not reasonably within its control; or                                           76 

 

                  (ii)   the general risks of investment in, or the holding of assets in, any                           jurisdiction,                     including (in each case and without limitation) such damages, costs, losses,                    diminution in value or liability arising as a result of:  nationalisation,                    expropriation or other governmental actions; any regulation, currency                    restriction, devaluation or fluctuation; market conditions affecting the                    execution or settlement of transactions or the value of assets (including any                    Disruption Event); breakdown, failure or malfunction of any third party                    transport, telecommunications, computer services or systems; natural disasters                    or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial                    action.         22.10.2 No Party (other than the Facility Agent) may take any proceedings against any officer,              employee or agent of the Facility Agent in respect of any claim it might have against              the Facility Agent or in respect of any act or omission of any kind by that officer,              employee or agent in relation to any Finance Document and any officer, employee or              agent of the Facility Agent may rely on this sub-clause 22.10.2 subject to              Clause 1.3(Third party rights) and the provisions of the Third Parties Act.         22.10.3 The Facility Agent will not 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 the Facility Agent if the Facility 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 the Facility Agent for that purpose.         22.10.4 Nothing in this Agreement shall oblige an Administrative Party to carry out:               (a)   any "know your customer" or other checks in relation to any person; or               (b)   any check on the extent to which any transaction contemplated by this                    Agreement might be unlawful for any Lender or for any Affiliate of any Lender,               on behalf of any Lender and each Lender confirms to the Facility Agent and the              Arranger 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 an              Administrative Party.         22.10.5 Without prejudice to any provision of any Finance Document excluding or limiting the              Facility Agent's liability, any liability of the Facility Agent arising under or in              connection with any Finance Document shall be limited to the amount of actual loss              which has been suffered (as determined by reference to the date of default of the Facility              Agent or, if later, the date on which the loss arises as a result of such default) but without              reference to any special conditions or circumstances known to the Facility Agent at any              time which increase the amount of that loss. In no event shall the Facility Agent be              liable for any loss of profits, goodwill, reputation, business opportunity or anticipated              saving, or for special, punitive, indirect or consequential damages, whether or not the              Facility Agent has been advised of the possibility of such loss or damages.   22.11 Lenders’ indemnity to the Facility Agent         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 Facility Agent, within three Business Days of demand, against        any cost, loss or liability (including, without limitation, for negligence or any other category of        liability whatsoever)  incurred by the Facility Agent (otherwise than by reason of the Facility                                          77 

 

      Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability        pursuant to Clause 16.10 (Disruption to payment systems etc.), notwithstanding the Facility        Agent's negligence, gross negligence or any other category of liability whatsoever but not        including any claim based on the fraud of the Facility Agent)  in acting as Facility Agent under        the Finance Documents (unless the Facility Agent has been reimbursed by a Borrower pursuant        to a Finance Document).   22.12 Resignation of the Facility Agent         22.12.1 The Facility Agent may resign and appoint one of its Affiliates acting through an office              in the U.K. as successor by giving notice to the Lenders and the Borrowers.         22.12.2 Alternatively the Facility Agent may resign by giving 30 days' notice to the Lenders              and the Borrowers, in which case the Majority Lenders (after consultation with the              Borrowers) may appoint a successor Facility Agent.         22.12.3 If the Majority Lenders have not appointed a successor Facility Agent in accordance              with sub-clause 22.12.2 above within 20 days after notice of resignation was given, the              retiring Facility Agent (after consultation with the Borrowers) may appoint a successor              Facility Agent (acting through an office in the U.K.).         22.12.4 If the Facility Agent wishes to resign because (acting reasonably) it has concluded that              it is no longer appropriate for it to remain as agent and the Facility Agent is entitled to              appoint a successor Facility Agent under sub-clause 22.12.3 above, the Facility Agent              may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade              the proposed successor Facility Agent to become a party to this Agreement as Facility              Agent) agree with the proposed successor Facility Agent amendments to this Clause 22              and any other term of this Agreement dealing with the rights or obligations of the              Facility Agent consistent with then current market practice for the appointment and              protection of corporate trustees together with any reasonable amendments to the agency              fee payable under this Agreement which are consistent with the successor Facility              Agent's normal fee rates and those amendments will bind the Parties.         22.12.5 The retiring Facility Agent shall make available to the successor Facility Agent such              documents and records and provide such assistance as the successor Facility Agent may              reasonably request for the purposes of performing its functions as Facility Agent under              the Finance Documents. The Borrower shall, within three Business Days of demand,              reimburse the retiring Facility Agent for the amount of all costs and expenses (including              legal fees) properly incurred by it in making available such documents and records and              providing such assistance.         22.12.6 The Facility Agent's resignation notice shall only take effect upon the appointment of              a successor.         22.12.7 Upon the appointment of a successor, the retiring Facility Agent shall be discharged              from any further obligation in respect of the Finance Documents (other than its              obligations under paragraph 22.12.5 above) but shall remain entitled to the benefit of              Clause 25.2  (Other Indemnities) and this Clause 22 (and any agency fees for the              account of the retiring Facility Agent shall cease to accrue from (and shall be payable              on) that date). Any successor and each of the other Parties shall have the same rights              and obligations amongst themselves as they would have had if such successor had been              an original Party.         22.12.8 After consultation with the Borrowers, the Majority Lenders may, by notice to the              Facility Agent, require it to resign in accordance with sub-clause 22.12.2 above. In this              event, the Facility Agent shall resign in accordance with sub-clause 22.12.2 above.                                          78 

 

      22.12.9 The Facility Agent shall resign in accordance with sub-clause 22.12.2 above (and, to              the extent applicable, shall use reasonable endeavours to appoint a successor Facility              Agent pursuant to clause 22.12.3 above) if on or after the date which is three months              before the earliest FATCA Application Date relating to any payment to the Facility              Agent under the Finance Documents, either:               (a)   the Facility Agent fails to respond to a request under Clause 13.8 (FATCA                    information) and the Borrowers or a Lender reasonably believes that the                    Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party                    on or after that FATCA Application Date;               (b)   the information supplied by the Facility Agent pursuant to Clause 13.8 (FATCA                    information) indicates that the Facility Agent will not be (or will have ceased                    to be) a FATCA Exempt Party on or after that FATCA Application Date; or               (c)   the Facility Agent notifies the Borrower and the Lenders that the Facility Agent                    will not be (or will have ceased to be) a FATCA Exempt Party on or after that                    FATCA Application Date;               and (in each case) the Borrowers or a Lender reasonably believes that a Party will be              required to make a FATCA Deduction that would not be required if the Facility Agent              were a FATCA Exempt Party, and the Borrowers or that Lender, by notice to the              Facility Agent, requires it to resign.   22.13 Confidentiality         22.13.1 In acting as agent for the Finance Parties, the Facility 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.         22.13.2 If information is received by another division or department of the Facility Agent, it              may be treated as confidential to that division or department and the Facility Agent              shall not be deemed to have notice of it.   22.14 Relationship with the Lenders         22.14.1 Subject to Clause 29.11 (Pro rata interest settlement), the Facility Agent may treat the              person shown in its records as Lender at the opening of business (in the place of the              Facility Agent's principal office as notified to the Finance Parties from time to time) as              the Lender acting through its Facility Office:               (a)   entitled to or liable for any payment due under any Finance Document on that                    day; and               (b)   entitled to receive and act upon any notice, request, document or                    communication or make any decision or determination under any Finance                    Document made or delivered on that day,               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.         22.14.2 Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf              all notices, communications, information and documents to be made or despatched to              that Lender under the Finance Documents. Such notice shall contain the address and              (where communication by electronic mail or other electronic means is permitted under              Clause 36.5  (Electronic communication)) electronic mail address and/or any other                                          79 

 

            information required to enable the transmission of information by that means (and, in              each case, the department or officer, if any, for whose attention communication is to be              made) and be treated as a notification of a substitute address, electronic mail address              (or such other information), department and officer by that Lender for the purposes of              Clause 36.2 (Addresses) and paragraph (b) of sub-clause 36.5.1 and the Facility Agent              shall be entitled to treat such person as the person entitled to receive all such notices,              communications, information and documents as though that person were that Lender.    22.15 Credit appraisal by the Lenders         Without affecting the responsibility of any Borrower for information supplied by it or on its        behalf in connection with any Finance Document, each Lender confirms to the Administrative        Parties 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:         22.15.1 the financial condition, status and nature of each member of any Borrower Group;         22.15.2 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;         22.15.3 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         22.15.4 the adequacy, accuracy or completeness of any information provided by the Facility              Agent, any Party or by any other person under or in connection with any Finance              Document, the transactions contemplated by any Finance Document or any other              agreement, arrangement or document entered into, made or executed in anticipation of,              under or in connection with any Finance Document.   22.16 Facility Agent's management time         Any amount payable to the Facility Agent under Clause 25.2 (Other Indemnities), Clause 26        (Expenses) and Clause 22.11 (Lenders' indemnity to the Facility Agent) shall include the cost        of utilising the Facility Agent's management time or other resources and will be calculated on        the basis of such reasonable daily or hourly rates as the Facility Agent may notify to the        Borrowers and the Lenders, and is in addition to any fee paid or payable to the Facility Agent        under Clause 24 (Fees).   22.17 Deduction from amounts payable by the Facility Agent         If any Party owes an amount to the Facility Agent under the Finance Documents the Facility        Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from        any payment to that Party which the Facility 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.   22.18 Role of Reference Banks         22.18.1 No Reference Bank is under any obligation to provide a quotation or any other              information to the Facility Agent.                                          80 

 

      22.18.2 No Reference Bank will be liable for any action taken by it under or in connection with              any Finance Document, or for any Reference Bank Quotation, unless directly caused              by its gross negligence or wilful misconduct.         22.18.3 No Party (other than the relevant Reference Bank) may take any proceedings against              any officer, employee or agent of any Reference Bank in respect of any claim it might              have against that Reference Bank or in respect of any act or omission of any kind by              that officer, employee or agent in relation to any Finance Document, or to any              Reference Bank Quotation, and any officer, employee or agent of each Reference Bank              may rely on this Clause 22.18 subject to Clause 1.3 (Third party rights) and the              provisions of the Third Parties Act.   22.19 Third party Reference Banks         A Reference Bank which is not a Party may rely on Clause 22.18 (Role of Reference Banks),        Clause 27.2 (Exceptions) and Clause 31 (Confidentiality of Funding Rates and Reference Bank        Quotations) subject to Clause 1.3 (Third party rights) and the provisions of the Third Parties        Act.   23.   EVIDENCE AND CALCULATIONS   23.1  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.   23.2  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.   23.3  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 Market differs, in accordance with that market        practice.   24.   FEES   24.1  Agency fee         The Borrowers must pay to the Facility Agent for its own account an annual agency fee in the        manner agreed between the Facility Agent and the Borrowers.   24.2  Upfront fees         The Borrowers must pay to the Facility Agent (for the account of each Original Lender) the        upfront fees as set out in a Fee Letter.   24.3  Co-ordination fee         The Borrowers must pay a co-ordination fee in the manner agreed between the Joint        Coordinators and the Borrowers.                                          81 

 

24.4  Commitment fee         24.4.1 Each Borrower must, with respect to its Facility, pay to the Facility Agent for the              account of each Lender a commitment fee computed at the rate of 35 per cent. of the              applicable Margin on the undrawn, uncancelled amount of each Lender’s Commitments              under the relevant Facility for the Availability Period, calculated from the date of this              Agreement.         24.4.2 The commitment fee is payable quarterly in arrear during the Availability Period and              on the last day of the Availability Period. Accrued commitment fee is also payable to              the Facility Agent for a Lender on the date its Commitment is cancelled in full.         24.4.3 No commitment fee is payable to the Facility Agent (for the account of a Lender) on              any Available Commitment of that Lender for any day on which that Lender is a              Defaulting Lender.   24.5  Utilisation fee         24.5.1 Each Borrower must pay to the Facility Agent for the account of each Lender a              utilisation fee computed at the rate of 0.075 per cent. per annum on the aggregate              principal amount of the Loans under its Facility for each day on which the aggregate              Base Currency Amount of all Loans is less than 33.3 per cent. of the relevant total              Commitments under its relevant Facility.         24.5.2 Each Borrower must pay to the Facility Agent for each Lender a utilisation fee              computed at the rate of 0.15 per cent. per annum on the aggregate principal amount of              the Loans under its Facility for each day on which the aggregate Base Currency Amount              of all Loans equals or exceeds 33.3 per cent. of the relevant total Commitments under              its relevant Facility. For the avoidance of doubt, the fee described in sub clause 24.5.1              above is not payable in respect of any day for which the fee described in this sub clause              24.5.2 is payable.         24.5.3 Each Borrower must pay to the Facility Agent for each Lender a utilisation fee              computed at the rate of 0.30 per cent. per annum on the aggregate principal amount of              the Loans under its Facility for each day on which the Base Currency Amount of all              Loans equals or exceeds 66.6 per cent. of the relevant total Commitments under its              relevant Facility. For the avoidance of doubt, the fees described in sub-clauses 24.5.1              and 24.5.2 above are not payable in respect of any day for which the fee described in              this sub-clause 24.5.3 is payable.         24.5.4 Utilisation fee is payable on the amount of each Lender’s share in the relevant Loans.         24.5.5 Accrued utilisation fee is payable quarterly in arrear. Accrued utilisation fee is also              payable to the Facility Agent for a Lender on the date its Commitment is cancelled in              full.   25.   INDEMNITIES AND BREAK COSTS   25.1  Currency indemnity         25.1.1 The Borrowers must, as an independent obligation, indemnify each Finance Party              against any loss or liability which that Finance Party incurs as a consequence of:               (a)   that Finance Party receiving an amount in respect of that Borrower’s liability                    under the Finance Documents; or                                          82 

 

            (b)   that liability being converted into a claim, proof, judgment or order,                in a currency other than the currency in which the amount is expressed to be payable              under the relevant Finance Document.         25.1.2 Unless otherwise required by law, each Borrower waives any right it may have in any              jurisdiction to pay any amount under the Finance Documents in a currency other than              that in which it is expressed to be payable.   25.2  Other indemnities         The Borrowers shall within 15 days of demand indemnify the Facility Agent and each Lender        against any funding or other cost, loss, expense or liability in an amount certified by it in        reasonable detail (together with documentation in support) sustained or incurred by it as a direct        result of:         25.2.1 the occurrence of any Event of Default;         25.2.2 (other than by reason of negligence or default by a Finance Party) a Loan not being              made after a Request has been delivered for that Loan; or         25.2.3 the receipt or recovery by any party (or the Facility Agent on its behalf) of all or any              part of a Loan or overdue sum due from that Borrower otherwise than on the Final              Maturity Date or Maturity Date of that Loan or, in the case of an overdue sum, the last              day of an interest period relating to that overdue sum, as the case may be or a Loan or              any part thereof not being prepaid in accordance with a notice of prepayment.   25.3  Indemnity to the Facility Agent         The Borrowers shall promptly indemnify the Facility Agent against any cost, loss or liability        incurred by the Facility Agent (acting reasonably) as a result of:         25.3.1 investigating any event which it reasonably believes is a Default;          25.3.2 acting or relying on any notice, request or instruction which it reasonably believes to              be genuine, correct and appropriately authorised; or         25.3.3 instructing lawyers, accountants, tax advisers, surveyors or other professional advisers              or experts as permitted under this Agreement.   25.4  Break Costs         25.4.1 The Borrowers must pay to each Lender its Break Costs within three Business Days of              demand.         25.4.2 Break Costs are the amount (if any) determined by the relevant Lender by which:               (a)   the interest (excluding Margin) which that Lender would have received for the                    period from the date of receipt of any part of its share in a Loan or overdue                    amount to the last day of the applicable Term for that Loan or overdue amount                    if the principal or overdue amount received had been paid on the last day of                    that Term;               exceeds               (b)   the amount which that Lender would be able to obtain by placing an amount                    equal to the amount received by it on deposit with a leading bank in the                                          83 

 

                  appropriate interbank market for a period starting on the Business Day                    following receipt and ending on the last day of the applicable Term.         25.4.3 Each Lender must supply to the Facility Agent for the relevant Borrower details of the              amount of any Break Costs claimed by it under this Clause.   26.   EXPENSES   26.1  Initial costs         The Borrowers must pay to each Administrative Party promptly on demand the amount of all        costs and expenses (including legal fees) reasonably incurred by it in connection with the        negotiation, preparation, printing, execution and syndication of the Finance Documents.   26.2  Subsequent costs         The Borrowers must pay to the Facility Agent promptly on demand the amount of all costs and        expenses (including legal fees) reasonably incurred by it in connection with:         26.2.1 the negotiation, preparation, printing and execution of any Finance Document (other              than a Transfer Certificate or Increase Confirmation) executed after the date of this              Agreement; and         26.2.2 any amendment, waiver or consent requested by or on behalf of a Borrower or              specifically allowed by this Agreement.   26.3  Enforcement costs         The Borrowers must pay to each Finance Party the amount of all costs and expenses (including        legal fees) incurred by it in connection with the enforcement of, or the preservation of any rights        under, any Finance Document.   27.   AMENDMENTS AND WAIVERS   27.1  Procedure         27.1.1 Except as provided in this Clause 27, any term of the Finance Documents (other than              the Fee Letters) may be amended or waived with the agreement of all of the Borrowers              and the Majority Lenders. The Facility Agent may effect, on behalf of any Finance              Party, an amendment or waiver allowed under this Clause.         27.1.2 The Facility Agent must promptly notify the other Parties of any amendment or waiver              effected by it under sub-clause 27.1.1 above. Any such amendment or waiver is binding              on all the Parties.   27.2  Exceptions         27.2.1 Subject to Clause 27.3 (Replacement of Screen Rate), an amendment or waiver of any              term of any Finance Document which relates to:               (a)   the definition of Majority Lenders in 1.1 (Definitions);               (b)   Clause 2.3 (Nature of a Finance Party’s rights and obligations);               (c)   an extension of the date of payment of any amount to a Lender under the                    Finance Documents;                                          84 

 

            (d)   a reduction in the Margin or a reduction in the amount of any payment of                    principal, interest, fee or other amount payable to a Lender under the Finance                    Documents;               (e)   a change in currency of payment of any amount under the Finance Documents;               (f)   an increase in any Commitment, an extension of the Availability Period or any                    requirement that a cancellation of Commitments reduces the Commitments of                    the Lenders rateably under any Facility;               (g)   a term of a Finance Document which expressly requires the consent of each                    Lender;               (h)   Clause 2.3 (Nature of a Finance Parties’ rights and obligations), Clause 5.1                    (Giving of Requests), Clause 9.1 (Mandatory prepayment - Illegality),                    Clause 9.2 (Mandatory prepayment – change of control), Clause 9.8.2, Clause                    17.19 (Sanctions),  Clause 20.18 (Sanctions), Clause 28 (Changes to the                    Borrowers), Clause 29 (Changes to the Lenders), Clause 33 (Pro Rata                    Sharing), Clause 38 (Governing law) or Clause 39.1 (Jurisdiction); or               (i)   this Clause,               may only be made with the consent of all the Lenders.         27.2.2 An amendment or waiver which relates to the rights or obligations of an Administrative              Party or a Reference Bank (each in their capacity as such) may only be made with the              consent of that Administrative Party or that Reference Bank, as the case may be.   27.3  Replacement of Screen Rate         27.3.1 Subject to Clause 27.2.2, if a Screen Rate Replacement Event has occurred in relation              to any Screen Rate for a currency which can be selected for a Loan, any amendment or              waiver which relates to:                (a)   providing for the use of a Replacement Benchmark in relation to that currency                    in place of that Screen Rate; and               (b)   aligning any provision of any Finance Document to the use of that Replacement                    Benchmark;               (c)   enabling that Replacement Benchmark to be used for the calculation of interest                    under this Agreement (including, without limitation, any consequential                    changes required to enable that Replacement Benchmark to be used for the                    purposes of this Agreement);               (d)   implementing market conventions applicable to that Replacement Benchmark;                (e)   providing for appropriate fallback (and market disruption) provisions for that                    Replacement Benchmark; or                (f)   adjusting the pricing to reduce or eliminate, to the extent reasonably                    practicable, any transfer of economic value from one Party to another as a result                    of the application of that Replacement Benchmark (and if any adjustment or                    method for calculating any adjustment has been formally designated,                    nominated or recommended by the Relevant Nominating Body, the adjustment                    shall be determined on the basis of that designation, nomination or                    recommendation),                                         85 

 

      may be made with the consent of the Facility Agent (acting on the instructions of the        Majority Lenders) and the Borrowers.   27.3.2 If any Lender fails to respond to a request for an amendment or waiver described in        paragraph (a) above within 10 (ten) Business Days of that request being made:          (a)   its Commitment shall not be included for the purpose of calculating the Total              Commitments when ascertaining whether any relevant percentage of Total              Commitments has been obtained to approve that request; and         (b)   its status as a Lender shall be disregarded for the purpose of ascertaining              whether the agreement of any specified group of Lenders has been obtained to              approve that request.   27.3.3 In this Clause 27.3:         “Relevant Nominating Body” means any applicable central bank, regulator or other        supervisory authority or a group of them, or any working group or committee sponsored        or chaired by, or constituted at the request of, any of them or the Financial Stability        Board.         “Replacement Benchmark” means a benchmark rate which is:         (a)   formally designated, nominated or recommended as the replacement for a              Screen Rate by:               (i)    the administrator of that Screen Rate (provided that the market or                     economic reality that such benchmark rate measures is the same as that                     measured by that Screen Rate); or               (ii)   any Relevant Nominating Body,                and if replacements have, at the relevant time, been formally designated,               nominated or recommended under both paragraphs, the “Replacement               Benchmark” will be the replacement under paragraph (ii) above         (b)   in the opinion of the Majority Lenders and the Borrowers, generally accepted              in the international or any relevant domestic syndicated loan markets as the              appropriate successor to a Screen Rate; or         (c)   in the opinion of the Majority Lenders and the Borrowers, an appropriate              successor to a Screen Rate.         “Screen Rate Replacement Event” means, in relation to a Screen Rate:         (a)   the methodology, formula or other means of determining that Screen Rate has,              in the opinion of the Majority Lenders and the Borrowers, materially changed;         (b)                  (i)                          (A)   the administrator of that Screen Rate or its supervisor publicly                           announces that such administrator is insolvent; or                      (B)   information is published in any order, decree, notice, petition                           or filing, however described, of or filed with a court, tribunal,                                    86 

 

                               exchange, regulatory authority or similar administrative,                                 regulatory or judicial body which reasonably confirms that the                                 administrator of that Screen Rate is insolvent,                             provided that, in each case, at that time, there is no successor                           administrator to continue to provide that Screen Rate;                     (ii)   the administrator of that Screen Rate publicly announces that it has                           ceased or will cease to provide that Screen Rate permanently or                           indefinitely and, at that time, there is no successor administrator to                           continue to provide that Screen Rate;                     (iii)  the supervisor of the administrator of that Screen Rate publicly                           announces that such Screen Rate has been or will be permanently or                           indefinitely discontinued; or                     (iv)   the administrator of that Screen Rate or its supervisor announces that                           that Screen Rate may no longer be used; or               (c)   the administrator of that Screen Rate determines that that Screen Rate should                    be calculated in accordance with its reduced submissions or other contingency                    or fallback policies or arrangements and either:                     (i)    the circumstance(s) or event(s) leading to such determination are not                           (in the opinion of the Majority Lenders and the Borrowers) temporary;                           or                     (ii)   that Screen Rate is calculated in accordance with any such policy or                           arrangement for a period no less than 30 days; or               (d)   in the opinion of the Majority Lenders and the Borrowers, that Screen Rate is                    otherwise no longer appropriate for the purposes of calculating interest under                    this Agreement.   27.4  Disenfranchisement of Defaulting Lenders         27.4.1 For so long as a Defaulting Lender has any Available Commitment, in ascertaining the              Majority Lenders or whether any given percentage (including, for the avoidance of              doubt, unanimity) of the Total Commitments has been obtained to approve any request              for a consent, waiver, amendment or other vote under the Finance Documents, that              Defaulting Lender’s Commitments will be reduced by the amount of its Available              Commitments.         27.4.2 For the purposes of this Clause 27.3, the Facility Agent may assume that the following              Lenders are Defaulting Lenders:               (a)   any Lender which has notified the Facility Agent that it has become a                    Defaulting Lender;               (b)   any Lender in relation to which it is aware that any of the events or                    circumstances referred to in paragraphs (a), (b) or (c) of the definition of                    “Defaulting Lender” has occurred where, in the case of the events or                    circumstances referred to in paragraph (a), none of the exceptions to that                    paragraph apply,                                          87 

 

            unless it has received notice to the contrary from the Lender concerned (together with              any supporting evidence reasonably requested by the Facility Agent) or the Facility              Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.   27.5  Replacement of a Defaulting Lender         27.5.1 The Borrowers may, at any time a Lender has become and continues to be a Defaulting              Lender, by giving 10 Business Days’ prior written notice to the Facility Agent and such              Lender:               (a)   replace such Lender by requiring such Lender to (and to the extent permitted                    by law such Lender shall) transfer pursuant to Clause 29 (Changes to the                    Lenders) all (and not part only) of its rights and obligations under this                    Agreement; or               (b)   require such Lender to (and to the extent permitted by law such Lender shall)                    transfer pursuant to Clause 29 (Changes to the Lenders) all (and not part only)                    of the undrawn Commitment of the Lender,               to a Lender or other bank, financial institution, trust, fund or other entity (a              “Replacement Lender”) selected by the Borrowers, and which is acceptable to the              Facility Agent (acting reasonably) (unless the Facility Agent is an Impaired Agent),              which confirms its willingness to assume and does assume all the obligations or all the              relevant obligations of the transferring Lender (including the assumption of the              transferring Lender’s participations or unfunded participations (as the case may be) on              the same basis as the transferring Lender) for a purchase price in cash payable at the              time of transfer equal to the outstanding principal amount of such Lender’s participation              in the outstanding Loans and all accrued interest (to the extent that the Facility Agent              has not given a notification under Clause 29.11 (Pro rata interest settlement)), Break              Costs and other amounts payable in relation thereto under the Finance Documents.         27.5.2 Any transfer of rights and obligations of a Defaulting Lender pursuant to this              Clause shall be subject to the following conditions:               (a)   no Borrower shall have the right to replace the Facility Agent;               (b)   neither the Facility Agent nor the Defaulting Lender shall have any obligation                    to the Borrowers to find a Replacement Lender;               (c)   the transfer must take place no later than 14 days alter the notice referred to in                    sub-clause 27.5.1 above;               (d)   in no event shall the Defaulting Lender be required to pay or surrender to the                    Replacement Lender any of the fees received by the Defaulting Lender                    pursuant to the Finance Documents; and               (e)   the Defaulting Lender shall only be obliged to transfer its rights and obligations                    pursuant to sub-clause 27.5.1 above once it is satisfied that it has complied with                    all necessary “know your customer” or other similar checks under all applicable                    laws and regulations in relation to the transfer to the Replacement Lender.   27.6  Excluded Commitments         If a Lender does not accept or reject a request for an amendment, waiver or consent within 15        Business Days of receipt of such request (or such longer period as the Borrowers and the        Facility Agent may agree), or abstains from accepting or rejecting a request for an amendment,                                          88 

 

      waiver or consent, its Commitments shall not be included for the purpose of calculating the        Total Commitments or participations under any Facility when ascertaining whether any relevant        percentage (including, for the avoidance of doubt, unanimity) of Commitments, Total        Commitments and/or participations has been obtained to approve that request.   27.7  Change of currency         27.7.1 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               (a)   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 Borrower); and               (b)   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).         27.7.2 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 Borrowers) specifies              to be necessary, be amended to comply with any generally accepted conventions and              market practice in the Relevant Market and otherwise to reflect the change in currency.   27.8  Waivers and remedies cumulative         The rights of each Finance Party under the Finance Documents:         27.8.1 may be exercised as often as necessary;          27.8.2 are cumulative and not exclusive of its rights under the general law; and         27.8.3 may be waived only in writing and specifically.         Delay in exercising or non-exercise of any right is not a waiver of that right.   28.   CHANGES TO THE BORROWERS         No Borrower may assign or transfer any of its rights and obligations under the Finance        Documents without the prior consent of all the Lenders.   29.   CHANGES TO THE LENDERS   29.1  Assignments and transfers by Lenders         29.1.1 Subject to this Clause 29, a Lender (the “Existing Lender”) may:               (a)   assign any of its rights; or               (b)   transfer by novation any of its rights and obligations,               under this Agreement to any bank, financial institution or to a trust, fund or other entity              which is regularly engaged in or established for the purpose of making, purchasing or              investing in loans, securities or other financial assets (the “New Lender”).                                          89 

 

      29.1.2 For the avoidance of doubt, any assignment or transfers pursuant to this Clause 29              (Changes to the Lenders) will apply on a pro rata basis across all Facilities.         29.1.3 Unless each of the Borrowers and the Facility Agent otherwise agree, an assignment or              transfer of part of a Commitment or rights and obligations under this Agreement by the              Existing Lender must be in an aggregate minimum amount (across the Facilities) of              £15,000,000.   29.2  Borrower Consent         29.2.1 The consent of the Borrowers is required for an assignment or transfer by an Existing              Lender, unless the assignment or transfer is:               (a)   to another Lender or an Affiliate of any Lender; or                (b)   made at a time when an Event of Default is continuing.         29.2.2 The consent of the Borrowers to an assignment or transfer must not be unreasonably              withheld or delayed. The Borrowers will be deemed to have given its consent ten              Business Days after the Existing Lender has requested it unless consent is expressly              refused by the Borrowers within that time.   29.3  Other conditions of assignment or transfer         29.3.1 An assignment will only be effective on:               (a)   receipt by the Facility Agent (whether in the Assignment Agreement or                    otherwise) of 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 had been an Original Lender; and               (b)   performance by the Facility Agent of all necessary “know your customer” or                    other similar checks under all applicable laws and regulations in relation to                    such assignment to a New Lender, the completion of which the Facility Agent                    shall promptly notify to the Existing Lender and the New Lender         29.3.2 A transfer will only be effective if the procedure set out in Clause 29.6 (Procedure for              transfer) is complied with.         29.3.3 If:               (a)   a Lender assigns or transfers any of its rights or obligations under the Finance                    Documents or changes its Facility Office; and               (b)   as a result of circumstances existing at the date the assignment, transfer or                    change occurs, a Borrower would be obliged to make a payment to the New                    Lender or Lender acting through its new Facility Office under Clause 13 (Tax                    gross-up and indemnities) or Clause 14 (Increased Costs),               then the New Lender or Lender acting through its new Facility Office is only entitled              to receive payment under those Clauses to the same extent as the Existing Lender or              Lender acting through its previous Facility Office would have been if the assignment,              transfer or change had not occurred. This sub-clause 29.3.3 shall not apply:               (a)   in respect of an assignment or transfer made in the ordinary course of the                    primary syndication of any Facility; or                                         90 

 

            (b)   in relation to Clause 13.2 (Tax gross-up), to a Treaty Lender that has included                    a confirmation of its scheme reference number and its jurisdiction of tax                    residence in accordance with Clause 13.2.7(b) (Tax gross-up) if the Borrower                    making the payment has not made a Borrower DTTP Filing in respect of that                    Treaty Lender.         29.3.4 Each New Lender, by executing the relevant Transfer Certificate or Assignment              Agreement, confirms, for the avoidance of doubt, that the Facility Agent has authority              to execute on its behalf any amendment or waiver that has been approved by or on              behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior              to the date on which the transfer or assignment becomes effective in accordance with              this Agreement and that it is bound by that decision to the same extent as the Existing              Lender would have been had it remained a Lender   29.4  Assignment or transfer fee         Unless the Facility Agent otherwise agrees, the New Lender shall, on the date upon which an        assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee £3,000.   29.5  Limitation of responsibility of Existing Lender         29.5.1 Unless expressly agreed to the contrary, an Existing Lender makes no representation or              warranty and assumes no responsibility to a New Lender for:               (a)   the legality, validity, effectiveness, adequacy, or enforceability of the Finance                    Documents or any other document;               (b)   the financial condition of any Borrower;               (c)   the performance and observance by any Borrower of its obligations under the                    Finance Documents or any other documents; or               (d)   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.         29.5.2 Each New Lender confirms to the Existing Lender and the other Finance Parties that it:               (a)   has made (and shall continue to make) its own independent investigation and                    assessment of the financial condition and affairs of each Borrower 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; and               (b)   will continue to make its own independent appraisal of the creditworthiness of                    each Borrower and its related entities whilst any amount is or may be                    outstanding under the Finance Documents or any Commitment is in force.         29.5.3 Nothing in any Finance Document requires an Existing Lender to:               (a)   accept a re-transfer or re-assignment from a New Lender of any of the rights                    and obligations assigned or transferred under this Clause; or               (b)   support any losses directly or indirectly incurred by the New Lender by reason                    of the non-performance by a Borrower of its obligations under any Finance                    Document or otherwise.                                         91 

 

29.6  Procedure for transfer         29.6.1 Subject to the conditions set out in Clauses 29.2 (Borrower consent) and Clause 29.3              (Other conditions of assignment or transfer) a transfer is effected in accordance with              paragraph 29.6.3 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 29.6.2 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.         29.6.2 The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to              it by the Existing Lender and the New Lender once it is satisfied it has complied with              all necessary “know your customer” or other similar checks under all applicable laws              and regulations in relation to the transfer to such New Lender.         29.6.3 Subject to Clause 29.11 (Pro rata interest settlement), on the Transfer Date:               (a)   to the extent that in the Transfer Certificate the Existing Lender seeks to                    transfer by novation its rights and obligations under the Finance Documents                    each of the Borrowers 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)   each of the Borrowers 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 Borrower and the New                    Lender have assumed and/or acquired the same in place of that Borrower and                    the Existing Lender;               (c)   the Facility Agent, the Arrangers, 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 Arrangers and the                    Existing Lender shall each be released from further obligations to each other                    under the Finance Documents; and               (d)   the New Lender shall become a Party as a “Lender”.   29.7  Procedure for assignment         29.7.1 Subject to the conditions set out in Clause 29.2 (Borrower consent) and Clause 29.3              (Other conditions of assignment or transfer) an assignment may be effected in              accordance with sub-clause 29.7.3 below when the Facility Agent executes an              otherwise duly completed Assignment Agreement delivered to it by the Existing Lender              and the New Lender. The Facility Agent shall, subject to sub-clause 29.7.2 below, as              soon as reasonably practicable after receipt by it of a duly completed Assignment              Agreement appearing on its face to comply with the terms of this Agreement and              delivered in accordance with the terms of this Agreement, execute that Assignment              Agreement.         29.7.2 The Facility Agent shall only be obliged to execute an Assignment Agreement              delivered to it by the Existing Lender and the New Lender once it is satisfied it has                                          92 

 

            complied with all necessary “know your customer” or other similar checks under all              applicable laws and regulations in relation to the assignment to such New Lender.         29.7.3 Subject to Clause 29.11 (Pro rata interest settlement), on the Transfer Date:               (a)   the Existing Lender will assign absolutely to the New Lender the rights under                    the Finance Documents expressed to be the subject of the assignment in the                    Assignment Agreement;               (b)   the Existing Lender will be released by each Borrower and the other Finance                    Parties from the obligations owed by it (the “Relevant Obligations”) and                    expressed to be the subject of the release in the Assignment Agreement; and               (c)   the New Lender shall become a Party as a “Lender” and will be bound by                    obligations equivalent to the Relevant Obligations.         29.7.4 Lenders may utilise procedures other than those set out in this Clause 29.7 to assign              their rights under the Finance Documents (but not, without the consent of the relevant              Borrower or unless in accordance with Clause 29.6 (Procedure for transfer), to obtain              a release by that Borrower from the obligations owed to that Borrower by the Lenders              nor the assumption of equivalent obligations by a New Lender) provided that they              comply with the conditions set out in Clause 29.2 (Borrower consent) and Clause 29.3              (Other conditions of assignment or transfer).   29.8  Changes to the Reference Banks          29.8.1 If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is              an Affiliate) ceases to be a Lender, the Facility Agent must (in consultation with the              Borrowers) appoint another Lender or an Affiliate of a Lender to replace that Reference              Bank.         29.8.2 If a Reference Bank ceases to have a London office or novates or assigns all its rights              and obligations under this Agreement or if any Commitments of any Reference Bank              are cancelled or if Loans it has advanced are prepaid it shall be replaced as a Reference              Bank by such other Lender or an Affiliate of a Lender with an office in London as the              Facility Agent (after consultation with the Borrowers) shall designate by notice to the              Borrowers and the Lenders.   29.9  Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to the        Borrowers         The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer        Certificate, an Assignment Agreement or an Increase Confirmation, send to the Borrowers a        copy of that Transfer Certificate, Assignment Agreement or Increase Confirmation.   29.10 Security over Lenders’ rights         In addition to the other rights provided to Lenders under this Clause 29, each Lender may        without consulting with or obtaining consent from any Borrower, at any time charge, assign or        otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or        any of its rights under any Finance Document to secure obligations of that Lender including,        without limitation:               (a)   any charge, assignment or other Security Interest to secure obligations to a                    federal reserve or central bank; and                                          93 

 

            (b)   any charge, assignment or other Security Interest granted to any holders (or                    trustee or representatives of holders) of obligations owed, or securities issued,                    by that Lender as security for those obligations or securities,         except that no such charge, assignment or Security Interest shall:                     (i)    release a Lender from any of its obligations under the Finance                           Documents or substitute the beneficiary of the relevant charge,                           assignment or other security for the Lender as a party to any of the                           Finance Documents; or                     (ii)   require any payments to be made by any Borrower other than or in                           excess of, or grant to any person any more extensive rights than, those                           required to be made or granted to the relevant Lender under the Finance                           Documents.   29.11 Pro rata interest settlement         29.11.1 If the Facility Agent has notified the Lenders that it is able to distribute interest              payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect              of any transfer pursuant to Clause 29.6 (Procedure for transfer) or any assignment              pursuant to Clause 29.7 (Procedure for assignment) the Transfer Date of which, in each              case, is after the date of such notification and is not on the last day of a Term):               (a)   any interest or fees in respect of the relevant participation which are expressed                    to accrue by reference to the lapse of time shall continue to accrue in favour of                    the Existing Lender up to but excluding the Transfer Date (“Accrued                    Amounts”) and shall become due and payable to the Existing Lender (without                    further interest accruing on them) on the last day of the current Term (or, if the                    Term is longer than six months, on the next of the dates which falls at six                    monthly intervals after the first day of that Term); and               (b)   the rights assigned or transferred by the Existing Lender will not include the                    right to the Accrued Amounts, so that, for the avoidance of doubt:                     (i)    when the Accrued Amounts become payable, those Accrued Amounts                           will be payable for the account of the Existing Lender; and                     (ii)   the amount payable to the New Lender on that date will be the amount                           which would, but for the application of this Clause 29.11, have been                           payable to it on that date, but after deduction of the Accrued Amounts.         29.11.2 In this Clause 29.11, references to “Term” shall be construed to include a reference to              any other period for accrual of fees.          29.11.3 An Existing Lender which retains the right to the Accrued Amounts pursuant to this              Clause 29.11 but which does not have a Commitment shall be deemed not to be a              Lender for the purposes of ascertaining whether the agreement of any specified group              of Lenders has been obtained to approve any request for a consent, waiver, amendment              or other vote of Lenders under the Finance Documents.                                          94 

 

30.   CONFIDENTIALITY AND DISCLOSURE OF INFORMATION   30.1  Confidential Information         Each Finance Party agrees to keep all Confidential Information confidential and not to disclose        it to anyone, save to the extent permitted by Clause 30.2 (Disclosure of Confidential        Information) and Clause 30.3 (Disclosure to numbering service providers), and to ensure that        all Confidential Information is protected with security measures and a degree of care that would        apply to its own confidential information.   30.2  Disclosure of Confidential Information         Any Finance Party may disclose:         30.2.1 to any of its Affiliates and Related Funds and any of its or their officers, directors,              employees, professional advisers, auditors, partners and Representatives such              Confidential Information as that Finance Party shall consider appropriate if any person              to whom the Confidential Information is to be given pursuant to this sub-clause 30.2.1              is informed in writing of its confidential nature and that some or all of such Confidential              Information may be price-sensitive information except that there shall be no such              requirement to so inform if the recipient is subject to professional obligations to              maintain the confidentiality of the information or is otherwise bound by requirements              of confidentiality in relation to the Confidential Information;         30.2.2 to any person:               (a)   to (or through) whom it assigns or transfers (or may potentially assign or                    transfer) all or any of its rights and/or obligations under one or more Finance                    Documents or which succeeds (or which may potentially succeed) it as Facility                    Agent and, in each case, to any of that person’s Affiliates, Related Funds,                    Representatives and professional advisers;               (b)   with (or through) whom it enters into (or may potentially enter into), whether                    directly or indirectly, any sub-participation in relation to, or any other                    transaction under which payments are to be made or may be made by reference                    to, one or more Finance Documents and/or the Borrowers and to any of that                    person’s Affiliates, Related Funds, Representatives and professional advisers;               (c)   appointed by any Finance Party or by a person to whom sub-clause 30.2.2(a)                    or (b) above applies to receive communications, notices, information or                    documents delivered pursuant to the Finance Documents on its behalf;               (d)   who invests in or otherwise finances (or may potentially invest in or otherwise                    finance), directly or indirectly, any transaction referred to in                    sub-clause 30.2.2(a) or (b) above;               (e)   to whom information is required or requested to be disclosed by any court of                    competent jurisdiction or any governmental, banking, taxation or other                    regulatory authority or similar body, the rules of any relevant stock exchange                    or pursuant to any applicable law or regulation;               (f)   to whom or for whose benefit that Finance Party charges, assigns or otherwise                    creates security (or may do so) pursuant to Clause 29.10 (Security over                    Lenders’ rights);                                          95 

 

            (g)   to whom information is required to be disclosed in connection with, and for the                    purposes of, any litigation, arbitration, administrative or other investigations,                    proceedings or disputes;               (h)   who is a Party; or               (i)   with the consent of all of the Borrowers,               in each case, such Confidential Information as that Finance Party shall consider              appropriate if:                     (i)    in relation to sub-clause 30.2.2(a), (b) and (c) above, the person to                           whom the Confidential Information is to be given has entered into a                           Confidentiality Undertaking except that there shall be no requirement                           for a Confidentiality Undertaking if the recipient is a professional                           adviser and is subject to professional obligations to maintain the                           confidentiality of the Confidential Information;                     (ii)   in relation to sub-clause 30.2.2(d) above, the person to whom the                           Confidential Information is to be given has entered into a                           Confidentiality Undertaking or is otherwise bound by requirements of                           confidentiality in relation to the Confidential Information they receive                           and is informed that some or all of such Confidential Information may                           be price-sensitive information;                     (iii)  in relation to sub-clause 30.2.2(e), (f) and (g) above, the person to                           whom the Confidential Information is to be given is informed of its                           confidential nature and that some or all of such Confidential                           Information may be price-sensitive information except that there shall                           be no requirement to so inform if, in the opinion of that Finance Party,                           it is not practicable so to do in the circumstances;         30.2.3 to any person appointed by that Finance Party or by a person to whom              sub-clause 30.2.2(a) or (b) above applies to provide administration or settlement              services in respect of one or more of the Finance Documents including without              limitation, in relation to the trading of participations in respect of the Finance              Documents, such Confidential Information as may be required to be disclosed to enable              such service provider to provide any of the services referred to in this sub-clause 30.2.3              if the service provider to whom the Confidential Information is to be given has entered              into a confidentiality agreement substantially in the form of the LMA Master              Confidentiality Undertaking for Use With Administration/Settlement Service Providers              or such other form of confidentiality undertaking agreed between the Borrowers and              the relevant Finance Party;         30.2.4 to any rating agency (including its professional advisers) such Confidential Information              as may be required to be disclosed to enable such rating agency to carry out its normal              rating activities in relation to the Finance Documents and/or the Borrowers if the rating              agency to whom the Confidential Information is to be given is informed of its              confidential nature and that some or all of such Confidential Information may be              price-sensitive information.   30.3  Disclosure to numbering service providers         30.3.1 Any Finance Party may disclose to any national or international numbering service              provider appointed by that Finance Party to provide identification numbering services                                          96 

 

      in respect of this Agreement, the Facilities and/or the Borrowers the following        information:         (a)   name of the Borrowers;         (b)   country of domicile of the Borrowers;         (c)   place of incorporation of the Borrowers;         (d)   date of this Agreement;         (e)   Clause 38 (Governing law);         (f)   the names of the Facility Agent and the Arrangers;         (g)   date of each amendment and restatement of this Agreement;         (h)   amounts of, and names of, each Facility;         (i)   amount of Total Commitments;         (j)   currencies of each Facility;         (k)   type of each Facility;         (l)   ranking of each Facility;         (m)   Final Maturity Date for each Facility;         (n)   changes to any of the information previously supplied pursuant to paragraphs              (a) to (m) above; and         (o)   such other information agreed between such Finance Party and the Borrowers,         to enable such numbering service provider to provide its usual syndicated loan        numbering identification services.   30.3.2 The Parties acknowledge and agree that each identification number assigned to this        Agreement, each Facility and/or the Borrowers by a numbering service provider and        the information associated with each such number may be disclosed to users of its        services in accordance with the standard terms and conditions of that numbering service        provider.   30.3.3 Each Borrower represents that none of the information set out in paragraphs (a) to (o)        of sub-clause 30.3.1 above is, nor will at any time be, unpublished price-sensitive        information.   30.3.4 The Facility Agent shall notify the Borrowers and the other Finance Parties of;         (a)   the name of any numbering service provider appointed by the Facility Agent in              respect of this Agreement, each Facility and/or the Borrowers; and         (b)   the number or, as the case may be, numbers assigned to this Agreement, each              Facility and/or the Borrowers by such numbering service provider.                                    97 

 

30.4  Continuing obligations         The obligations in this Clause 30 are continuing and, in particular, shall survive and remain        binding on each Finance Party for a period of twelve months from the earlier of:         30.4.1 the date on which all amounts payable by the Borrowers under or in connection with              this Agreement have been paid in full and all Commitments have been cancelled or              otherwise cease to be available; and          30.4.2 the date on which such Finance Party otherwise ceases to be a Finance Party.   31.   CONFIDENTIALITY OF FUNDING RATES AND REFERENCE BANK        QUOTATIONS   31.1  Confidentiality and disclosure         31.1.1 The Facility Agent and each Borrower agree to keep each Funding Rate (and, in the              case of the Facility Agent, each Reference Bank Quotation) confidential and not to              disclose it to anyone, save to the extent permitted by sub-clause 31.1.2, 31.1.3 and              31.1.4 below.         31.1.2 The Facility Agent may disclose:               (a)   any Funding Rate (but not, for the avoidance of doubt, any Reference Bank                    Quotation) to the Borrowers pursuant to Clause 10.4 (Notification of rates of                    interest); and               (b)   any Funding Rate or any Reference Bank Quotation to any person appointed                    by it to provide administration services in respect of one or more of the Finance                    Documents to the extent necessary to enable such service provider to provide                    those services if the service provider to whom that information is to be given                    has entered into a Confidentiality Undertaking.         31.1.3 The Facility Agent may disclose any Funding Rate or any Reference Bank Quotation,              and each Borrower may disclose any Funding Rate, to:               (a)   any of its Affiliates and any of its or their officers, directors, employees,                    professional advisers, auditors and partners if any person to whom that Funding                    Rate or Reference Bank Quotation is to be given pursuant to this paragraph (a)                    is informed in writing of its confidential nature and that it may be                    price-sensitive information except that there shall be no such requirement to so                    inform if the recipient is subject to professional obligations to maintain the                    confidentiality of that Funding Rate or Reference Bank Quotation or is                    otherwise bound by requirements of confidentiality in relation to it;               (b)   any person to whom information is required or requested to be disclosed by any                    court of competent jurisdiction or any governmental, banking, taxation or other                    regulatory authority or similar body, the rules of any relevant stock exchange                    or pursuant to any applicable law or regulation if the person to whom that                    Funding Rate or Reference Bank Quotation is to be given is informed in writing                    of its confidential nature and that it may be price-sensitive information except                    that there shall be no requirement to so inform if, in the opinion of the Facility                    Agent or the relevant Borrower, as the case may be, it is not practicable to do                    so in the circumstances;                                          98 

 

            (c)   any person to whom information is required to be disclosed in connection with,                    and for the purposes of, any litigation, arbitration, administrative or other                    investigations, proceedings or disputes if the person to whom that Funding Rate                    or Reference Bank Quotation is to be given is informed in writing of its                    confidential nature and that it may be price-sensitive information except that                    there shall be no requirement to so inform if, in the opinion of the Facility Agent                    or the relevant Borrower, as the case may be, it is not practicable to do so in the                    circumstances; and               (d)   any person with the consent of the relevant Lender or Reference Bank, as the                    case may be.         31.1.4 The Facility Agent’s obligations in this Clause 31 (Confidentiality of Funding Rates              and Reference Bank Quotations) relating to Reference Bank Quotations are without              prejudice to its obligations to make notifications under Clause 10.4 (Notification of              rates of interest) provided that (other than pursuant to paragraph (a) of              sub-clause 31.1.2 above) the Facility Agent shall not include the details of any              individual Reference Bank Quotation as part of any such notification.   31.2  Other obligations         31.2.1 The Facility Agent and each Borrower acknowledge that each Funding Rate (and, in              the case of the Facility Agent, each Reference Bank Quotation) is or may be              price-sensitive information and that its use may be regulated or prohibited by applicable              legislation including securities law relating to insider dealing and market abuse and the              Facility Agent and each Borrower undertakes not to use any Funding Rate or, in the              case of the Facility Agent, any Reference Bank Quotation for any unlawful purpose.         31.2.2 The Facility Agent and each Borrower agrees (to the extent permitted by law and              regulation) to inform the relevant Lender or Reference Bank, as the case may be:               (a)   of the circumstances of any disclosure made pursuant to paragraph (b) of                    sub-clause 31.1.3 above except where such disclosure is made to any of the                    persons referred to in that paragraph during the ordinary course of its                    supervisory or regulatory function; and               (b)   upon becoming aware that any information has been disclosed in breach of this                    Clause 31 (Confidentiality of Funding Rates and Reference Bank Quotations).   32.   SET-OFF         A Finance Party may set off any matured obligation owed to it by a Borrower 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 Borrower, regardless of the place        of payment, booking branch or currency of either obligation. If the obligations are in different        currencies, the Finance Party may convert either obligation at a market rate of exchange in its        usual course of business for the purpose of the set-off.                                          99 

 

33.   PRO RATA SHARING   33.1  Redistribution         33.1.1 If any amount owing by a Borrower under this Agreement to a Lender (the “recovering              Lender”) is discharged by payment, set-off or any other manner other than through the              Facility Agent under this Agreement (a “recovery”), then:               (a)   the recovering Lender must, within three Business Days, supply details of the                    recovery to the Facility Agent;               (b)   the Facility Agent must calculate whether the recovery is in excess of the                    amount which the recovering Lender would have received if the recovery had                    been received by the Facility Agent under this Agreement; and               (c)   the recovering Lender must pay to the Facility Agent an amount equal to the                    excess (the “redistribution”).   33.2  Effect of redistribution         33.2.1 The Facility Agent must treat a redistribution as if it were a payment by the relevant              Borrower under this Agreement and distribute it among the Lenders, other than the              recovering Lender, accordingly.         33.2.2 When the Facility Agent makes a distribution under sub-clause 33.2.1 above, the              recovering Lender will be subrogated to the rights of the Finance Parties which have              shared in that redistribution.         33.2.3 If and to the extent that the recovering Lender is not able to rely on any rights of              subrogation under sub-clause 33.2.2 above, the Borrower will owe the recovering              Lender a debt which is equal to the redistribution, immediately payable and of the type              originally discharged.         33.2.4 If:               (a)   a recovering Lender must subsequently return a recovery, or an amount                    measured by reference to a recovery, to a Borrower; and               (b)   the recovering Lender has paid a redistribution in relation to that recovery,               each Finance Party must reimburse the recovering Lender all or the appropriate portion              of the redistribution paid to that Finance Party, together with interest for the period              while it held the re-distribution. In this event, the subrogation in sub-clause 33.2.2              above will operate in reverse to the extent of the reimbursement.   33.3  Exceptions         Notwithstanding any other term of this Clause 33.3, a recovering Lender need not pay a        redistribution to the extent that:         33.3.1 it would not, after the payment, have a valid claim against that Borrower in the amount              of the redistribution; or         33.3.2 it would be sharing with another Finance Party any amount which the recovering              Lender has received or recovered as a result of legal or arbitration proceedings, where:               (a)   the recovering Lender notified the Facility Agent of those proceedings; and                                          100 

 

            (b)   the other Finance Party had an opportunity to participate in those proceedings                    but did not do so or did not take separate legal or arbitration proceedings as                    soon as reasonably practicable after receiving notice of them.   34.   SEVERABILITY   34.1  If a term of a Finance Document is or becomes illegal, invalid or unenforceable in any        jurisdiction, that shall not affect:         34.1.1 the legality, validity or enforceability in that jurisdiction of any other term of the              Finance Documents; or         34.1.2 the legality, validity or enforceability in other jurisdictions of that or any other term of              the Finance Documents.   35.   COUNTERPARTS         Each Finance Document may be executed in any number of counterparts. This has the same        effect as if the signatures on the counterparts were on a single copy of the Finance Document.   36.   NOTICES   36.1  Communication in writing         Any communication to be made under or in connection with the Finance Documents shall be        made in writing and, unless otherwise stated, shall be made by letter.   36.2  Addresses         The address (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 Borrowers, that identified with its name below:                     (i)    WPDEM:                            Address:    Avonbank, Feeder Road, Bristol, BS2 0TB                            Phone number:   0117 933 2374                            E-mail:     wpdtreasuryconfirms@westernpower.co.uk                            Attention: David Hole                     (ii)   WPDWM:                            Address:    Avonbank, Feeder Road, Bristol, BS2 0TB                            Phone number:   0117 933 2374                            E-mail:     wpdtreasuryconfirms@westernpower.co.uk                            Attention: David Hole                     (iii)  WPDSW:                            Address:    Avonbank, Feeder Road, Bristol, BS2 0TB                                         101 

 

                         Phone number:   0117 933 2374                            E-mail:     wpdtreasuryconfirms@westernpower.co.uk                            Attention: David Hole                     (iv)   WPDSWa:                            Address:    Avonbank, Feeder Road, Bristol, BS2 0TB                            Phone number:   0117 933 2374                            E-mail:     wpdtreasuryconfirms@westernpower.co.uk                            Attention: David Hole               (b)   in the case of each Lender, 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:                     Address:     Lloyds Bank plc, 3rd Floor New Uberior House, 11 Earl Grey                                 Street, Edinburgh, EH3 9BN                     E mail:  scott.christie@lloydsbanking.com                     Attention: Scott Christie               or any substitute address 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.   36.3  Delivery               Any communication or document made or delivered by one person to another under or              in connection with the Finance Documents will only be effective if by way of letter,              when it has been left at the relevant address or five Business Days after being deposited              in the post postage prepaid in an envelope addressed to it at that address, and, if a              particular department or officer is specified as part of its address details provided under              Clause 36.2 (Addresses), if addressed to that department or officer.         36.3.1 Any communication or document to be made or delivered to the Facility Agent will be              effective only when actually received by the Facility Agent and then only if it is              expressly marked for the attention of the department or officer identified in paragraph              (c) of Clause 36.2 (Addresses) above (or any substitute department or officer as the              Facility Agent shall specify for this purpose).         36.3.2 All notices from or to a Borrower shall be sent through the Facility Agent.         36.3.3 Any communication or document which becomes effective, in accordance with sub-             clause 36.3.1 above, after 5:00 p.m. in the place of receipt shall be deemed only to              become effective on the following day.   36.4  Notification of address         Promptly upon changing its address, the Facility Agent shall notify the other Parties.                                          102 

 

36.5  Electronic communication         36.5.1 Any communication or document to be made or delivered by one Party to another under              or in connection with the Finance Documents may be made or delivered by electronic              mail or other electronic means (including, without limitation, by way of posting to a              secure website) if those two Parties:               (a)   notify each other in writing of their electronic mail address and/or any other                    information required to enable the transmission of information by that means;                    and               (b)   notify each other of any change to their address or any other such information                    supplied by them by not less than five Business Days' notice.         36.5.2 Any such electronic communication or delivery as specified in sub-clause 36.5.1 above              to be made between a Borrower and a Finance Party may only be made in that way to              the extent that those two Parties agree that, unless and until notified to the contrary, this              is to be an accepted form of communication or delivery.         36.5.3 Any such electronic communication or document as specified in sub-clause 36.5.1              above made or delivered by one Party to another will be effective only when actually              received (or made available) in readable form and in the case of any electronic              communication or document made or delivered by a Party to the Facility Agent only if              it is addressed in such a manner as the Facility Agent shall specify for this purpose.         36.5.4 Any electronic communication or document which becomes effective, in accordance              with sub-clause 36.3.2 above, after 5:00 p.m. in the place in which the Party to whom              the relevant communication or document is sent or made available has its address for              the purpose of this Agreement shall be deemed only to become effective on the              following day.         36.5.5 Any reference in a Finance Document to a communication being sent or received or a              document being delivered shall be construed to include that communication or              document being made available in accordance with this Clause 36.5.   36.6  English language         36.6.1 Any notice given under or in connection with any Finance Document must be in              English.         36.6.2 All other documents provided under or in connection with any Finance Document must              be:               (a)   in English; or               (b)   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.   36.7  Communication when Facility Agent is Impaired Agent         If the Facility Agent is an Impaired Agent the Parties may, instead of communicating with each        other through the Facility Agent, communicate with each other directly and (while the Facility        Agent is an Impaired Agent) all the provisions of the Finance Documents which require        communications to be made or notices to be given to or by the Facility Agent shall be varied so                                          103 

 

      that communications may be made and notices given to or by the relevant Parties directly. This        provision shall not operate after a replacement Facility Agent has been appointed.   37.   LANGUAGE         37.1.1 Any notice given in connection with a Finance Document must be in English.         37.1.2 Any other document provided in connection with a Finance Document must be:               (a)   in English; or               (b)   (unless the Facility Agent otherwise agrees) accompanied by a certified English                    translation. In this case, the English translation prevails unless the document is                    a statutory or other official document.   38.   GOVERNING LAW         This Agreement and any non-contractual obligations arising out of or in connection with it are        governed by English law.   39.   ENFORCEMENT   39.1  Jurisdiction         39.1.1 The English courts have exclusive jurisdiction to settle any dispute in connection with              any Finance Document including a dispute relating to any non-contractual obligation              arising out of or in connection with this Agreement.         39.1.2 The Parties agree that the English courts are the most appropriate and convenient courts              to settle any such dispute and each Borrower waives objection to those courts on the              grounds of inconvenient forum or otherwise in relation to proceedings in connection              with any Finance Document.         39.1.3 Notwithstanding sub-clauses 39.1.1 and 39.1.2 above, no Finance Party shall be              prevented from taking:               (a)   proceedings in any other court; and               (b)   concurrent proceedings in any number of jurisdictions.   40.   CONTRACTUAL RECOGNITION OF BAIL-IN         Notwithstanding any other term of any Finance Document or any other agreement, arrangement        or understanding between the Parties, each Party acknowledges and accepts that any liability of        any Party to any other Party under or in connection with the Finance Documents may be subject        to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be        bound by the effect of:         (a)   any Bail-In Action in relation to any such liability, including (without limitation):               (i)    a reduction, in full or in part, in the principal amount, or outstanding amount                     due (including any accrued but unpaid interest) in respect of any such liability;               (ii)   a conversion of all, or part of, any such liability into shares or other instruments                     of ownership that may be issued to, or conferred on, it; and                                          104 

 

            (iii)  a cancellation of any such liability; and         (b)   a variation of any term of any Finance Document to the extent necessary to give effect              to any Bail-In Action in relation to any such liability.   This Agreement has been entered into on the date stated at the beginning of this Agreement.                                              105 

 

                                     SCHEDULE 1                                   ORIGINAL PARTIES           Name of       Facility A    Facility B    Facility C    Facility D      Totals Treaty  Original     Commitment    Commitment    Commitment    Commitment                     Passport  Lender                                                                                 scheme                                                                                        reference                                                                                       number and                                                                                      jurisdiction of                                                                                       tax residence                                                                                      (if applicable)                                  HSBC UK       34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    Bank plc  Lloyds Bank   34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    Plc  Mizuho        34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    Bank, Ltd.  National      34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    Westminster  Bank Plc  Royal Bank    34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    of Canada  Santander     34,831,114.40   34,831,114.40   30,651,380.67   17,415,557.20   117,729,166.67    UK Plc  Barclays      31,952,662.71   31,952,662.71   28,118,343.20   15,976,331.36   107,999,999.98    Bank PLC  MUFG          9,060,650.89   9,060,650.89   7,973,372.78   4,530,325.44   30,625,000.00    Bank, Ltd.                                  Total        £250,000,000 £250,000,000 £220,000,000 £125,000,000 £845,000,000                                                                                                                                                                                                                    106 

 

                                 SCHEDULE 2                      CONDITIONS PRECEDENT DOCUMENTS   1.    Borrowers         (a)   A copy of the constitutional documents of each Borrower.         (b)   A copy of a resolution of the board of directors of each Borrower:               (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 a specified person or persons to execute the Finance Documents to                     which it is a party on its behalf; and               (iii)  authorising a specified person or persons, on its behalf, to sign and/or despatch                     all documents and notices (including, if relevant, any 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 resolution referred to in              paragraph (b) above.         (d)   A certificate of each Borrower (signed by a director) confirming that borrowing the              relevant Commitments would not cause any borrowing or similar limit binding on it to              be exceeded.         (e)   A certificate of an authorised signatory of the relevant Borrower certifying that each              copy document relating to it specified in this Schedule 2 is correct, complete and in full              force and effect as at a date no earlier than the date of this Agreement.   2.    Legal opinions         A legal opinion of Linklaters LLP, legal advisers to the Arrangers and the Facility Agent in        England, substantially in the form distributed to the Original Lenders prior to signing this        Agreement.   3.    Other documents and evidence         (a)   A copy of any other Authorisation or other document, opinion or assurance which the              Facility Agent considers to be necessary or desirable (if it has notified the relevant              Borrower accordingly) in connection with the entry into and performance of the              transactions contemplated by any Finance Document or for the validity and              enforceability of any Finance Document.         (b)   The Original Financial Statements.         (c)   Evidence that the Existing Facilities will be (i) repaid and cancelled in full prior to, or              (ii) simultaneously fully refinanced by, the first utilisation under the Facilities.         (d)   Evidence that the fees, costs and expenses then due from the Borrowers pursuant to              Clause 24 (Fees) and Clause 26 (Expenses) have been paid or will be paid by the first              Drawdown Date.                                          107 

 

                                 SCHEDULE 3                                    REQUESTS   To: [  ] as Facility Agent   From:   [  ]    Date: [  ]   £845,000,000 Facilities Agreement dated [  ] 2020 (as amended and restated from time to time)                                  (the “Agreement”)   1.    We refer to the Agreement. This is a Request. Terms defined in the Agreement have the same        meaning in this Request unless given a different meaning in this Request.   2.    We wish to borrow a Loan on the following terms:         (a)   Facility being utilised:  [  ]         (b)   Drawdown Date:     [  ]         (c)   Amount/currency:   [  ]         (d)   Term:              [  ]   3.    Our payment instructions are: [  ]   4.    We confirm that each condition precedent under the Agreement which must be satisfied on the        date of this Request is so satisfied.   5.    We confirm that as at [relevant testing date] Consolidated EBITDA was [  ] and Interest        Payable was [  ]; therefore, the ratio of Consolidated EBITDA to Interest Payable was [  ] to        1.   6.    We confirm that as at [relevant testing date] Regulatory Asset Base was [  ] and Total Net        Debt was [  ]; therefore, Total Net Debt does not exceed an amount equal to 85% of the        Regulatory Asset Base.   7.    This Request is irrevocable.   By:   [  ]                                          108 

 

                                 SCHEDULE 4                        FORM OF TRANSFER CERTIFICATE    To:   [  ] as Facility Agent   From:  [THE EXISTING LENDER] (the “Existing Lender”) and [THE NEW LENDER] (the “New        Lender”)   Date: [  ]   £845,000,000 Facilities Agreement dated [  ] 2020 (as amended and restated from time to time)                                  (the “Agreement”)   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.   1.    The Existing Lender and the New Lender agree to the Existing Lender transferring by novation        to the New Lender, and in accordance with Clause 29.6 (Procedure for transfer), all of the        Existing Lender’s rights and obligations under the Agreement and the other Finance Documents        which relate to that portion of the Existing Lender’s Commitment(s) and participations in Loans        under the Agreement as specified in the Schedule below.   2.    The proposed Transfer Date is [  ].    3.    The administrative details of the New Lender for the purposes of the Agreement are set out in        the Schedule.   4.    The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations        set out in Clause 29.5.3 (Limitation of responsibility of Existing Lenders) of the Agreement.   5.    The New Lender confirms, for the benefit of the Facility Agent and without liability to any        Borrower, that it is:         (a)   [a Qualifying Lender (other than a Treaty Lender);]         (b)   [a Treaty Lender;]         (c)   [not a Qualifying Lender]   6.    [The New Lender confirms that the person beneficially entitled to interest payable to that        Lender in respect of an advance under a Finance Document is either:         (a)   a company resident in the United Kingdom for United Kingdom tax purposes; or         (b)   a partnership each member of which is:               (i)   a company so resident in the United Kingdom; or               (ii)  a company not so resident in the United Kingdom which carries on a trade in                    the United Kingdom through a permanent establishment and which brings into                    account in computing its chargeable profits (within the meaning of section 19                    of the CTA) the whole of any share of interest payable in respect of that advance                    that falls to it by reason of Part 17 of the CTA; or         (c)   a company not so resident in the United Kingdom which carries on a trade in the United              Kingdom through a permanent establishment and which brings into account interest                                          109 

 

            payable in respect of that advance in computing the chargeable profits (within the              meaning of section 19 of the CTA) of that company.]**   7.    [The New Lender confirms (for the benefit of the Facility Agent and without liability to any        Borrower) that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport        scheme (reference number [  ]), and is tax resident in [  ] *** so that interest payable to it by        the Borrowers is generally subject to full exemption from UK withholding tax and notifies each        Borrower which is a Party as a Borrower as at the Transfer Date that it wishes that scheme to        apply to the Agreement.]****    8.    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.   9.    This Transfer Certificate and any non-contractual obligations arising out of or in connection        with it are governed by English law.    10.   This Transfer Certificate has been entered into on the date stated at the beginning of this        Transfer Certificate.   NOTES:   *     Delete as applicable – each New Lender is required to confirm which of these three categories        it falls within.   **    Include if New Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender in        Clause 13.1 (Definitions).   *** Insert jurisdiction of tax residence.   ****  This confirmation must be included if the New Lender holds a passport under the HMRC DT        Treaty Passport scheme and wishes that scheme to apply to the Agreement.                                          110 

 

                                THE SCHEDULE                    Commitment/rights and obligations to be transferred                 [insert relevant details, including applicable Commitment (or part)]                         Administrative details of the New Lender             [insert details of Facility Office, address for notices and payment details etc.]      [EXISTING LENDER] [NEW LENDER]   By: By:   The Transfer Date is confirmed by the Facility Agent as [  ].   [  ]   By:                                           111 

 

                                 SCHEDULE 5                       FORM OF ASSIGNMENT AGREEMENT   To: [  ] as Facility Agent and [        ] as Borrower   From:  [THE EXISTING LENDER] (the “Existing Lender”) and [THE NEW LENDER] (the “New        Lender”)   Dated: [  ]   £845,000,000 Facilities Agreement dated [  ] 2020 (as amended and restated from time to time)                                     (the “Agreement”)   1.    We refer to the Agreement. This is an Assignment Agreement. Terms defined in the Agreement        have the same meaning in this Assignment Agreement unless given a different meaning in this        Assignment Agreement.   2.    We refer to Clause 29.7 (Procedure for assignment) of the Agreement:         (a)   The Existing Lender assigns absolutely to the New Lender all the rights of the Existing              Lender under the Agreement and the other Finance Documents which relate to that              portion of the Existing Lender’s Commitment and participations in Loans under the              Agreement as specified in the Schedule.         (b)   The Existing Lender is released from all the obligations of the Existing Lender which              correspond to that portion of the Existing Lender’s Commitment and participations in              Loans under the Agreement specified in the Schedule.         (c)   The New Lender becomes a Party as a Lender and is bound by obligations equivalent              to those from which the Existing Lender is released under paragraph (b) above.    3.    The proposed Transfer Date is [  ].   4.    On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.   5.    The administrative details of the New Lender for the purposes of the Agreement are set out in        the Schedule.   6.    The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations        set out in Clause 29.5.3 (Limitation of responsibility of Existing Lenders) of the Agreement.   7.    The New Lender confirms, for the benefit of the Facility Agent and without liability to any        Borrower, that it is:         (a)   [a Qualifying Lender (other than a Treaty Lender);]         (b)   [a Treaty Lender;]         (c)   [not a Qualifying Lender].   8.    [The New Lender confirms that the person beneficially entitled to interest payable to that        Lender in respect of an advance under a Finance Document is either:         (a)   a company resident in the United Kingdom for United Kingdom tax purposes;         (b)   a partnership each member of which is:                                          112 

 

            (i)    a company so resident in the United Kingdom; or               (ii)   a company not so resident in the United Kingdom which carries on a trade in                     the United Kingdom through a permanent establishment and which brings into                     account in computing its chargeable profits (within the meaning of section 19                     of the CTA) the whole of any share of interest payable in respect of that                     advance that falls to it by reason of Part 17 of the CTA; or         (c)   a company not so resident in the United Kingdom which carries on a trade in              the United Kingdom through a permanent establishment and which brings into              account interest payable in respect of that advance in computing the chargeable              profits (within the meaning of section 19 of the CTA) of that company.]    9.    [The New Lender confirms that it holds a passport under the HMRC DT Treaty passport scheme        (reference number [  ]) and is tax resident in [  ], so that interest payable to it by borrowers        is generally subject to full exemption from UK withholding tax, and notifies each Borrower        which is a Party as a Borrower as at the Transfer Date that it wishes that scheme to apply to the        Agreement.]   10.   This Assignment Agreement acts as notice to the Facility Agent (on behalf of each Finance        Party) and, upon delivery in accordance with Clause 29.9 (Copy of Transfer Certificate,        Assignment Agreement or Increase Confirmation to Company) of the Agreement, to the        Borrowers of the assignment referred to in this Assignment Agreement.   11.   This Assignment Agreement may be executed in any number of counterparts and this has the        same effect as if the signatures on the counterparts were on a single copy of this Assignment        Agreement.   12.   This Assignment Agreement and any non-contractual obligations arising out of or in connection        with it are governed by English law.   13.   This Assignment Agreement has been entered into on the date stated at the beginning of this        Assignment Agreement.                                          113 

 

                                THE SCHEDULE              Rights to be assigned and obligations to be released and undertaken                                 [Insert relevant details]      [Facility Office address and attention details for notices and account details for payments]      [Existing Lender]                    [New Lender]      By: By:      This Assignment Agreement is accepted by the Facility Agent and the Transfer Date is confirmed as  [      ].   Signature of this Assignment Agreement by the Facility Agent constitutes confirmation by the Facility  Agent of receipt of notice of the assignment referred to herein, which notice the Facility Agent receives  on behalf of each Finance Party.   [Facility Agent]   By:                                             114 

 

                                 SCHEDULE 6                       FORM OF COMPLIANCE CERTIFICATE   To: [  ] as Facility Agent   From: [  ]   Date: [  ]   £845,000,000 Facilities Agreement dated [  ] 2020 (as amended and restated from time to time)                                  (the “Agreement”)   1.    We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement        have the same meaning in this Compliance Certificate unless given a different meaning in this        Compliance Certificate.   2.    We confirm that as at [relevant testing date], Consolidated EBITDA was [  ] and Interest        Payable was [  ], therefore the ratio of Consolidated EBITDA to Interest Payable was [  ] to        1.   3.    We confirm that as at [relevant testing date], Regulatory Asset Base was [  ] and Total Net        Debt was [  ]; therefore Total Net Debt does not exceed 85% of the Regulatory Asset Base.   4.    We set out below calculations establishing the figures in paragraphs 2 and 3 above:         [  ].   5.    We confirm that the following companies were Material Subsidiaries at [relevant testing date]:         [  ].   6.    [We confirm that no Default is outstanding as at [relevant testing date].]1      [  ]   By:   Director   Director                               1     If this statement cannot be made, the certificate should identify any Default that is outstanding and the        steps, if any, being taken to remedy it.                                         115 

 

                                 SCHEDULE 7                       FORM OF INCREASE CONFIRMATION   To: [  ] as Facility Agent and [  ] as Borrower   From: [the Increase Lender] (the “Increase Lender”)   Dated: [  ]   £845,000,000 Facilities Agreement dated [  ] 2020 (as amended and restated from time to time)                                  (the “Agreement”)   1.    We refer to the Agreement This is an Increase Confirmation. Terms defined in the Agreement        have the same meaning in this Increase Confirmation unless given a different meaning in this        Increase Confirmation.   2.    We refer to Clause 2.2 (Increase) of the Agreement.   3.    In accordance with the terms of the Agreement the Increase Lender agrees to assume and will        assume all of the obligations corresponding to the Commitment specified in the Schedule (the        “Relevant Commitment”) as if it was an Original Lender under the Agreement.   4.    The proposed date on which the increase in relation to the Increase Lender and the Relevant        Commitment is to take effect (the “Increase Date”) is [  ].   5.    On the Increase Date, the Increase Lender becomes party to the Finance Documents as a Lender.   6.    The Facility Office, address and attention details for notices to the Increase Lender are set out        in the Schedule.   7.    The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations        referred to in Clause 2.2 (Increase).   8.    The Increase Lender confirms, for the benefit of the Facility Agent and without liability to any        Borrower, that it is:         8.1.1 [a Qualifying Lender (other than a Treaty Lender);]         8.1.2 [a Treaty Lender;]         8.1.3 [not a Qualifying Lender].*   9.    [The Increase Lender confirms that the person beneficially entitled to interest payable to that        Lender in respect of an advance under a Finance Document is either;          9.1.1 a company resident in the United Kingdom for United Kingdom tax purposes; or         9.1.2 a partnership each member of which is:               (1)    a company so resident in the United Kingdom; or               (2)    a company not so resident in the United Kingdom which carries on a trade in                     the United Kingdom through a permanent establishment and which brings into                     account in computing its chargeable profits (within the meaning of section 19                     of the CTA) the whole of any share of interest payable in respect of that                     advance that falls to it by reason of Part 17 of the CTA; or                                          116 

 

      9.1.3 a company not so resident in the United Kingdom which carries on a trade in the United              Kingdom through a permanent establishment and which brings into account interest              payable in respect of that advance in computing the chargeable profits (within the              meaning of section 19 of the CTA) of that company.]**   10.   [The Increase Lender confirms (for the benefit of the Facility Agent and without liability to any        Borrower) that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport        scheme (reference number [  ]), and is tax resident in [  ] *** so that interest payable to it by        the Borrowers is generally subject to full exemption from UK withholding tax and notifies each         Borrower which is a Party as a Borrower as at the Increase Date that it wishes that scheme to        apply to the Agreement.]****   11.   This Increase Confirmation 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 Increase        Confirmation.   12.   This Increase Confirmation and any non-contractual obligations arising out of or in connection        with it are governed by English law.   13.   This Increase Confirmation has been entered into on the date stated at the beginning of this        Increase Confirmation.    NOTES:   *     Delete as applicable – each Increase Lender is required to confirm which of these three        categories it falls within.   **    Include if Increase Lender comes within paragraph (a)(ii) of the definition of Qualifying Lender        in Clause 13.1 (Definitions).   *** Insert jurisdiction of tax residence.   ****  This confirmation must be included if the Increase Lender holds a passport under the HMRC        DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.                                          117 

 

                                THE SCHEDULE       Relevant Commitment/rights and obligations to be assumed by the Increase Lender                                [insert relevant details]       [Facility office address and attention details for notices and account details for payments]      [Increase Lender]  By:  This Increase Confirmation is confirmed as an Increase Confirmation for the purposes of the Agreement  by the Facility Agent and the Increase Date is confirmed as [  ].  Facility Agent  By:  as Facility Agent for and on behalf of each of the  parties to the Agreement (other than the Increase Lender)                                           118 

 

                                     SCHEDULE 8                                      TIMETABLES                               Loans in euro       Loans in sterling   Loans in other                                                                      currencies  Facility Agent notifies the - - U-4  relevant Borrower if a currency  is approved as an Optional  Currency in accordance with  Clause 4.3 (Conditions relating  to Optional Currencies)  Delivery of a duly completed U-3                U-1                 U-3  Request (Clause 5.2                                                   (Completion of Requests))   9:30 a.m.           9:30 a.m.           9:30 a.m.  Facility Agent determines (in U-3               U-1                 U-3  relation to a Loan) the Base                                          Currency Amount of the Loan, Noon               Noon                Noon  if required under Clause 5.4  (Advance of Loan) and notifies  the Lenders of the Loan in  accordance with Clause 5.4  (Advance of Loan)  Facility Agent receives a   Quotation Day       -                   Quotation Day  notification from a Lender  under Clause 7.2.1 (Revocation  of a currency)  Facility Agent gives notice in Quotation Day    - Quotation Day  accordance with Clause 7.2                                            (Revocation of a currency)  5:30 p.m.                               5:30 p.m.  LIBOR or EURIBOR is fixed   Quotation Day as of Quotation Day as of Quotation Day as of                              11:00 a.m. London   11:00 am.           11:00 am.                              time in respect of                              LIBOR and as of                              11:00 am. (Brussels                              time) in respect of                              EURIBOR  Reference Bank Rate calculated [Noon] on the    [Noon] on the       [Noon] on the  by reference to available   Quotation Day in    Quotation Day       Quotation Day in  quotations in accordance with respect of LIBOR and                  respect of LIBOR  Clause 12.2 (Calculation of Quotation Day [11:30]  Reference Bank Rate)        a.m. (Brussels time) in                              respect of EURIBOR  “U” =         date of utilisation  “U-X”  =      X Business Days prior to date of utilisation.                                                                    119 

 

                                 SCHEDULE 9                         FORM OF SUBORDINATION DEED   THIS SUBORDINATION DEED is entered into as a deed on [ ] and is made   BETWEEN:   1. [  ] (registered number [  ]) (the “Company”);   2.    [SUBORDINATED CREDITOR] (the “Subordinated Creditor”); and   3. [  ], as Facility Agent acting on behalf of the Lenders (the “Facility Agent”).   1.    INTERPRETATION   1.1   Definitions         In this Deed:         “Agreement” means the £845,000,000 Multicurrency Revolving Facilities Agreement dated []        2020 as amended from time to time between, amongst others, Western Power Distribution (East        Midlands) PLC, (Western Power Distribution (West Midlands) PLC, Western Power        Distribution (South West) PLC and Western Power Distribution (South Wales) PLC as        Borrowers and [  ]as Facility Agent.         “Certificate” means a document substantially in the form set out in Annex 1 (Form of        Certificate).         “Party” means a party to this Deed.         “Permitted Subordinated Debt Payment” means:         (a)   the repayment or prepayment of any principal amount (or capitalised interest)              outstanding under the Subordinated Finance Document;         (b)   the payment of any interest, fee or charge accrued or due under or any other amount              payable in connection with the Subordinated Finance Document; or         (c)   the purchase, redemption, defeasance or discharge of any amount outstanding under the              Subordinated Finance Document,         provided that the Company, prior to any action referred to in paragraphs (a) to (c) above being        taken, delivers to the Facility Agent a Certificate, signed by two directors of the Company,        certifying that, taking into account any such action, the Company will be in compliance with        its obligations under Clause 19 (Financial Covenants) of the Agreement on each of the next        two Measurement Dates.         “Senior Debt” means any present or future liability (actual or contingent) payable or owing by        the Company to a Finance Party under or in connection with the Finance Documents.         “Senior Debt Discharge Date” means the date on which all the Senior Debt has been        unconditionally and irrevocably paid and discharged in full and no Finance Party has any        commitment or liability, whether present or future, actual or contingent, in relation to the        Company under the relevant Facility, as determined by the Facility Agent.         “Subordinated Creditor Accession Deed” means a deed substantially in the form set out in        Annex 1 (Form of Subordinated Creditor Accession Deed).                                          120 

 

      “Subordinated Debt” means any present or future liability (actual or contingent) payable or        owing by the Company to the Subordinated Creditor under or in connection with any        Subordinated Finance Document.         “Subordinated Finance Document” means [  ].   1.2   Construction         1.2.1 Capitalised terms defined in the Agreement have the same meaning in this Deed, unless              given a different meaning in this Deed.         1.2.2 The principles of construction set out in the Agreement will have effect as if set out in              this Deed.         1.2.3 Any undertaking by the Subordinated Creditor in this Deed remains in force from the              date of this Deed to the Senior Debt Discharge Date.   1.3   Third Party rights         Unless otherwise indicated and save in respect of any other creditor under any of the Finance        Documents, a person who is not a party to this Deed has no right under the Contracts (Rights        of Third Parties) Act 1999 (or any other applicable law) to enforce any term of this Deed.   2.    SUBORDINATION   2.1   Ranking         Each of the Parties hereby agrees that the Senior Debt, whether secured or unsecured, shall rank        senior in priority to the Subordinated Debt.   2.2   Undertakings of the Company         The Company must not without the prior consent of the Lenders:         2.2.1 make any payment whatsoever in respect of the Subordinated Debt other than a              Permitted Subordinated Debt Payment; or         2.2.2 secure, in any manner, all or any part of the Subordinated Debt; or         2.2.3 defease, in any manner, all or any part of the Subordinated Debt; or         2.2.4 give any financial support (including the taking of any participation, the giving of any              guarantee or other assurance or the making of any deposit) to any person in connection              with all or any part of the Subordinated Debt; or         2.2.5 procure any other person to do any of the acts or take any of the actions referred to              paragraphs 2.2.1 to 2.2.4 above.   2.3   Undertakings of the Subordinated Creditor         2.3.1 The Subordinated Creditor will not without the prior written consent of the Lenders:               (a)   allow to exist or receive the benefit of any Security Interest, guarantee,                    indemnity or other assurance against loss in respect of all or any of the                    Subordinated Debt or all or any rights which it may have against the Company                    in respect of all or any part of the Subordinated Debt; or                                          121 

 

            (b)   take or omit to take any action or step whereby the subordination of all or any                    of the Subordinated Debt might be terminated, impaired or adversely affected.         2.3.2 The Subordinated Creditor will not without the prior written consent of the Lenders              receive any payment save where such payment is a Permitted Subordinated Debt              Payment.         2.3.3 The Subordinated Creditor will not without the prior written consent of the Lenders:               (a)   demand payment, declare prematurely due and payable or otherwise seek to                    accelerate payment of or place on demand all or any part of the Subordinated                    Debt or enforce the Subordinated Debt by execution or otherwise;               (b)   initiate or support or take any steps with a view to, or which may lead to:                     (i)    any insolvency, liquidation, reorganisation, administration or                           dissolution proceedings;                     (ii)   any voluntary arrangement or assignment for the benefit of creditors;                           or                     (iii)  any similar proceedings,                     involving the Company or any of its Subsidiaries, whether by petition,                    convening a meeting, voting for a resolution or otherwise;               (c)   bring or support any legal proceedings against the Company or any of its                    Subsidiaries; or               (d)   otherwise exercise any remedy for the recovery of all or any part of the                    Subordinated Debt (including, without limitation, the exercise of any right of                    set-off, counterclaim or lien).         2.3.4 If the Subordinated Creditor receives any payment which is in breach of any Finance              Document, it shall hold such sums on trust for the Facility Agent (acting on behalf of              the Lenders) and pay them immediately to the Facility Agent (acting on behalf of the              Lenders) to be applied against the Senior Debt.         2.3.5 The Subordinated Creditor and the Company hereby agree for the benefit of the Facility              Agent and the Lenders that, notwithstanding the terms of the Subordinated Finance              Document and any agreement relating to the Subordinated Debt, the Subordinated Debt              is made available on terms such that it is not, save for a Permitted Subordinated Debt              Payment or otherwise with the consent of the Lenders, repayable unless and until the              Senior Debt Discharge Date shall have occurred.   2.4   Subordination on insolvency         If there occurs any payment, distribution, division or application, partial or complete, voluntary        or involuntary, by operation of law or otherwise, of all or any part of the assets of any kind or        character of the Company or the proceeds thereof, to creditors of the Company, by reason of        the liquidation, dissolution or other winding-up of the Company or its businesses or any        bankruptcy, reorganisation, receivership or insolvency or similar proceeding or any assignment        for the benefit of creditors or there is a marshalling of the assets and liabilities of the Company,        or the Company becomes subject to any event mentioned in clause 21.6 (Insolvency        proceedings) of the Agreement or a voluntary arrangement, then and in any such event:         2.4.1 the Subordinated Debt shall continue to be subordinated to the Senior Debt;                                         122 

 

      2.4.2 any payment or distribution of any kind or character and all and any rights in respect              thereof, whether in cash, securities or other property which is payable or deliverable              upon or with respect to the Subordinated Debt or any part thereof by a liquidator,              administrator or receiver (or the equivalent thereof) of the Company or its estate (the              “rights”) made to or paid to, or received by the Subordinated Creditor or to which the              Subordinated Creditor is entitled shall be held on trust by the Subordinated Creditor for              the Lenders and shall forthwith be paid or, as the case may be, transferred or assigned              to the Lenders to be applied against the Senior Debt;         2.4.3 if the trust referred to in paragraph 2.4.2 above or paragraph 2.3.4 of Clause 2.3 above              fails or cannot be given effect to or if the Subordinated Creditor receives and retains              the relevant payment or distribution, the Subordinated Creditor will pay over such              rights in the form received to the Facility Agent (acting on behalf of the Lenders) to be              applied against the Senior Debt;         2.4.4 the Subordinated Creditor acknowledges the rights of the Facility Agent (acting on              behalf of the Lenders) to demand, sue and prove for, collect and receive every payment              or distribution referred to in paragraph 2.4.2 above and give acquittance therefore and              to file claims and take such other proceedings, in the Facility Agent’s own name or              otherwise, as the Facility Agent may deem necessary or advisable for the enforcement              of this Deed; and         2.4.5 the Subordinated Creditor by way of security for its obligations under this Deed              irrevocably appoints the Facility Agent to be its attorney in order to enable the Facility              Agent to enforce any and all claims upon or with respect to the Subordinated Debt or              any part thereof, and to collect and receive any and all payments or distributions              referred to in paragraph 2.4.2 above or to do anything which that Subordinated Creditor              has authorised the Facility Agent or any other Party to do under this Deed or is itself              required to do under this Deed but has failed to do (and the Facility Agent may delegate              that power on such terms as it sees fit).   3.    SET-OFF   3.1   The Subordinated Creditor shall not set off against the Subordinated Debt any amount payable        by the Subordinated Creditor to the Company.   3.2   If any part of the Subordinated Debt is discharged in whole or in part by way of set-off, the        Subordinated Creditor will promptly pay to the Facility Agent for application in accordance        with the terms of paragraph 2.4.2 of Clause 2.4 (Subordination on insolvency) an amount equal        to the amount of the Subordinated Debt discharged by such set-off.   4.    NEW MONEY         The Subordinated Creditor hereby agrees that the Facility Agent (acting on behalf of the        Lenders) may, at its discretion, increase the facility made available to the Company and make        further advances to the Company, and each such advance will be deemed to be made under the        terms of the Agreement.   5.    PROTECTION OF SUBORDINATION   5.1   The subordination in this Deed is a continuing subordination and benefits the ultimate balance        of the Senior Debt.   5.2   Except as provided in this Deed, the subordination is, and the Subordinated Creditor’s        obligations under this Deed will, not be affected by any act, omission or thing which, but for                                          123 

 

      this provision, would reduce, release or prejudice the subordination or any of the Subordinated        Creditor’s obligations under this Deed.   6.    MISCELLANEOUS   6.1   This Deed overrides anything in any Subordinated Finance Document to the contrary.   6.2   Any communication in respect of this Deed must be in writing. Contact details for each Party        are set out opposite their name, below.   6.3   This Deed is a Finance Document.   7.    ASSIGNMENT   7.1   The Facility Agent (acting on behalf of the Lenders) shall have the full and unfettered right to        assign or otherwise transfer the whole or any part of the benefit of this Deed to any person to        whom all or a corresponding part of its rights, benefits and obligations under any of the Finance        Documents are assigned or transferred in accordance with their provisions.   7.2   The Subordinated Creditor shall not assign or transfer all or any of its rights, title, benefit and        interest in or to all or any part of the Subordinated Debt unless in full and on or prior to such        assignment or transfer the assignee or transferee accedes to this Deed as Subordinated Creditor        pursuant to the Subordinated Creditor Accession Deed.   8.    TRUSTS         8.1.1 The Facility Agent shall hold the benefit of this Deed upon trust for itself and the              Lenders.         8.1.2 The perpetuity period for each trust created by this Deed shall be 80 years.   9.    TERMINATION         Subject to Clause 4 (New Money), on the Senior Debt Discharge Date, the terms of this Deed        shall terminate.   10.   GOVERNING LAW         This Deed and any non-contractual obligations arising out of or in connection with it are        governed by English law.   11.   JURISDICTION         The English courts have exclusive jurisdiction to settle any dispute including a dispute relating        to non-contractual obligations arising out of or in connection with this Deed and the Parties        submit to the exclusive jurisdiction of the English courts.   IN WITNESS whereof this Deed has been duly executed by the Parties on the day and year first above  written.                                                                                     124 

 

                    Form of Subordinated Creditor Accession Deed    To: [  ], as Facility Agent acting on behalf of the Lenders.   To: [the Company]   From: [Acceding Subordinated Creditor]      THIS DEED is made on [date] by [Acceding Subordinated Creditor] (the “Acceding Subordinated  Creditor”) in relation to the subordination deed (the “Subordination Deed”) dated [  ]  between,  among others, [  ] as Company, [  ] as Facility Agent and the Subordinated Creditor (as defined in  the Subordination Deed). Terms defined in the Subordination Deed shall, unless otherwise defined in  this Deed, bear the same meanings when used in this Deed.   In consideration of the Acceding Subordinated Creditor being accepted as the Subordinated Creditor  for the purposes of the Subordination Deed, the Acceding Subordinated Creditor confirms that, as from  [date], it intends to be party to the Subordination Deed as the Subordinated Creditor and undertakes to  perform all the obligations expressed in the Subordination Deed to be assumed by the Subordinated  Creditor and agrees that it shall be bound by all the provisions of the Subordination Deed, as if it had  been an original party to the Subordination Deed as the Subordinated Creditor.   This Deed and any non-contractual obligations arising out of or in connection with it are governed by  English law.   IN WITNESS whereof this Deed has been duly executed by the Parties on the day and year first above  written.                                           125 

 

                                 SIGNATORIES   Company   EXECUTED as a DEED                          )  [  ]                                       )  acting by                                   )   .............................................................    Director      In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Company contact details:          Address:         Phone number:          E-mail:          Attention:                                              EU-DOCS\27959506.12 

 

Acceding Subordinated Creditor   EXECUTED as a DEED                          )  by [ACCEDING SUBORDINATED CREDITOR] )  acting by                                   )  .............................................................    Director   In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Subordinated Creditor contact details:         Address:          Phone number:          E-mail:         Attention:                                               EU-DOCS\27959506.12 

 

Facility Agent   EXECUTED as a DEED                          )  by [AGENT]                                  )  acting by                                   )  .............................................................    Director   In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Facility Agent contact details:   Address:                                              EU-DOCS\27959506.12 

 

                                    Annex 2                                  Form of Certificate   To: [  ] as Facility Agent   From:   [the Company]   Date:   [  ]   £845,000,000 Revolving Facility Agreement dated [  ] 2020 (as amended and restated from time   to time) (the “Agreement”) and Subordination Deed dated [  ] (as amended and restated from                               time to time) (the “Deed”)   1.    We refer to the Agreement and the Deed. Capitalised terms defined in the Deed have the same        meaning in this Certificate, unless given a different meaning in this Certificate.   2.    We confirm that the Company will make [insert type of payment] of [insert amount and        currency] under [insert description of relevant Subordinated Finance Document] on [insert        date of payment],   3.    We confirm that, taking into account such payment, the Company will be in compliance with        its obligations under Clause 19 (Financial Covenants) of the Agreement on each of the next        two Measurement Dates (as such term is defined in the Agreement).       [ the Company ]      By:   Director      By:   Director                                           129  EU-DOCS\27959506.12 

 

                                    SIGNATORIES   Company   EXECUTED as a DEED                          )  by [  ]                                    )  acting by                                   )   .............................................................    Director      In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Company contact details:          Address:          Phone number:          E-mail:          Attention:                                              EU-DOCS\27959506.12 

 

   Subordinated Creditor   EXECUTED as a DEED                          )  by [SUBORDINATED CREDITOR] )  acting by                                   )  .............................................................    Director   In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Subordinated Creditor contact details:         Address:         Phone number:          E-mail:         Attention:                                               EU-DOCS\27959506.12 

 

   Facility Agent   EXECUTED as a DEED                          )  by [  ]                                    )  acting by                                   )  .............................................................     Director   In the presence of:   Witness’s Signature:     ..................................................................   Name:  ..................................................................   Address:  ..................................................................   Facility Agent contact details:   Address:                                              EU-DOCS\27959506.12 

 

                                    SIGNATURES   THE BORROWERS   Signed by Julie Hunt (Treasurer)   for and on behalf of      WESTERN POWER                                 DISTRIBUTION (EAST MIDLANDS) PLC   Address: Avonbank                  Feeder Road    Bristol BS2 0TB                                                                                                    [Signature page to the Facilities Agreement]   

 

   Signed by Julie Hunt (Treasurer)   for and on behalf of      WESTERN POWER                                 DISTRIBUTION (WEST MIDLANDS) PLC   Address: Avonbank                  Feeder Road    Bristol BS2 0TB                                                                                                [Signature page to the Facilities Agreement]   

 

   Signed by Julie Hunt (Treasurer)   for and on behalf of      WESTERN POWER                                 DISTRIBUTION (SOUTH WEST) PLC   Address: Avonbank                  Feeder Road    Bristol BS2 0TB                                                                                                [Signature page to the Facilities Agreement]   

 

   Signed by Julie Hunt (Treasurer)   for and on behalf of      WESTERN POWER                                 DISTRIBUTION (SOUTH WALES) PLC   Address: Avonbank                  Feeder Road    Bristol BS2 0TB                                                                         [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by Roger Crosby (Director)   for and on behalf of      BARCLAYS BANK PLC    Address:        5 The North Colonnade   London   E14 4BB                                                                         [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by Scott Syme    for and on behalf of      HSBC UK BANK PLC    Address: 1 Centenary Square   Birmingham   United Kingdom   B1 1HQ                                                                          [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by Lee Chester (Associate Director)   for and on behalf of      LLOYDS BANK PLC    Address: 10 Gresham Street   London   EC2V 7AE                                                                        [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by Kevin Andrews   for and on behalf of      MIZUHO BANK, LTD.    Address: Mizuho House                  30 Old Bailey   London   EC4M 7AU                                                                                [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by David Noden (Director)   for and on behalf of      NATIONAL WESTMINSTER BANK PLC    Address: 250 Bishopsgate   London   EC2M 4AA                                                                        [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by David Ellis (Managing Director) [Digitally signed]  for and on behalf of      ROYAL BANK OF CANADA    Address: Riverbank House   2 Swan Lane   London   EC4R 3BF                                                                          [Signature page to the Facilities Agreement]   

 

   BOOKRUNNER AND MANDATED LEAD ARRANGER   Signed by Alejandro Ciruelos and Rebecca Cook   for and on behalf of      SANTANDER UK PLC    Address:        2 Triton Square   Regent’s Place   London    NW1 3AN                                                                       [Signature page to the Facilities Agreement]   

 

   MANDATED LEAD ARRANGER   Signed by Simon Lello (Managing Director)   for and on behalf of      MUFG BANK, LTD.    Address: Ropemaker Place   25 Ropemaker Street   London    EC2Y 9AN                                                                       [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Roger Crosby (Director)   for and on behalf of      BARCLAYS BANK PLC    Address:        5 The North Colonnade   London   E14 4BB                                                                           [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Scott Syme     for and on behalf of      HSBC UK BANK PLC    Address: 1 Centenary Square   Birmingham   United Kingdom   B1 1HQ                                                                              [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Lee Chester   for and on behalf of      LLOYDS BANK PLC    Address: 10 Gresham Street   London   EC2V 7AE                                                                       [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Kevin Andrews   for and on behalf of      MIZUHO BANK, LTD.    Address: Mizuho House                  30 Old Bailey   London   EC4M 7AU                                                                             [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Simon Lello (Managing Director)   for and on behalf of      MUFG BANK, LTD.    Address: Ropemaker Place   25 Ropemaker Street   London    EC2Y 9AN                                                                     [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by David Noden (Director)   for and on behalf of      NATIONAL WESTMINSTER BANK PLC    Address: 250 Bishopsgate   London   EC2M 4AA                                                                        [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by David Ellis (Managing Director) [Digitally signed]  for and on behalf of      ROYAL BANK OF CANADA    Address: Riverbank House   2 Swan Lane   London   EC4R 3BF                                                                     [Signature page to the Facilities Agreement]   

 

   THE LENDERS   Signed by Alejandro Ciruelos and Rebecca Cook   for and on behalf of      SANTANDER UK PLC    Address:        2 Triton Square   Regent’s Place   London    NW1 3AN                                                                        [Signature page to the Facilities Agreement]   

 

   THE FACILITY AGENT   Signed by John Togher (Associate Director)   for and on behalf of      LLOYDS BANK PLC                                                                      [Signature page to the Facilities Agreement]   

 

   THE JOINT COORDINATORS   Signed by Kevin Andrews   for and on behalf of      MIZUHO BANK, LTD.   Address: Mizuho House                  30 Old Bailey   London   EC4M 7AU                                                                            [Signature page to the Facilities Agreement]   

 

   THE JOINT COORDINATORS   Signed by David Noden (Director)   for and on behalf of      NATIONAL WESTMINSTER BANK PLC   Address: 250 Bishopsgate   London   EC2M 4AA                                                                           [Signature page to the Facilities Agreement]

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