Document:

ex4_10.htm

Exhibit 4.10

	 

 

CET 21 SPOL. S R.O.

as Issuer,

CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.,

CENTRAL EUROPEAN MEDIA ENTERPRISES N.V.,

CME MEDIA ENTERPRISES B.V.,

CME INVESTMENTS B.V., AND

CME SLOVAK HOLDINGS B.V.

and

MARKÍZA-SLOVAKIA, SPOL. S R.O.

as Guarantors,

CITIBANK, N.A., LONDON BRANCH

as Trustee,

CITIBANK, N.A., LONDON BRANCH

as Paying Agent and Transfer Agent,

and

Citigroup Global Markets Deutschland AG

As Registrar

____________________________

INDENTURE

Dated as of October 21, 2010

____________________________

Senior Secured Notes due 2017

	 

 

  

 

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

	
1

	  	
SECTION 1.1

	
Definitions

	
1

	  	
SECTION 1.2

	
Rules of Construction

	
29

	  	  	  	  
	
ARTICLE II THE NOTES

	29
	  	
SECTION 2.1

	
Form and Dating

	
30

	  	
SECTION 2.2

	
Execution and Authentication

	
30

	  	
SECTION 2.3

	
Registrar and Paying Agent

	
31

	  	
SECTION 2.4

	
Paying Agent to Hold Assets

	
32

	  	
SECTION 2.5

	
List of Holders of Notes

	
33

	  	
SECTION 2.6

	
Book-Entry Provisions for Global Notes.

	
33

	  	
SECTION 2.7

	
Registration of Transfer and Exchange.

	
34

	  	
SECTION 2.8

	
Replacement Notes

	
38

	  	
SECTION 2.9

	
Outstanding Notes

	
38

	  	
SECTION 2.10

	
Treasury Notes

	
39

	  	
SECTION 2.11

	
Temporary Notes

	
39

	  	
SECTION 2.12

	
Cancellation

	
39

	  	
SECTION 2.13

	
Defaulted Interest

	
40

	  	
SECTION 2.14

	
ISIN and Common Codes

	
40

	  	
SECTION 2.15

	
Deposit of Moneys

	
40

	  	
SECTION 2.16

	
Certain Matters Relating to Global Notes

	
40

	  	  	  	  
	
ARTICLE III REDEMPTION

	
41

	  	
SECTION 3.1

	
Optional Redemption

	
41

	  	
SECTION 3.2

	
Notices to Trustee

	
41

	  	
SECTION 3.3

	
Selection of Notes to Be Redeemed

	
41

	  	
SECTION 3.4

	
Notice of Redemption

	
41

	  	
SECTION 3.5

	
Effect of Notice of Redemption

	
43

	  	
SECTION 3.6

	
Deposit of Redemption Price

	
43

	  	
SECTION 3.7

	
Notes Redeemed in Part

	
43

	  	  	  	  
	
ARTICLE IV COVENANTS

	
44

	  	
SECTION 4.1

	
Payment of Notes.

	
44

	  	
SECTION 4.2

	
Maintenance of Office or Agency

	
44

	  	
SECTION 4.3

	
Limitation on Indebtedness

	
44

	  	
SECTION 4.4

	
Limitation on Restricted Payments.

	
48

	  	
SECTION 4.5

	
Corporate Existence

	
51

	  	
SECTION 4.6

	
Limitation on Liens

	
52

	  	
SECTION 4.7

	
Waiver of Stay, Extension or Usury Laws

	
52

	  	
SECTION 4.8

	
Limitation on Restrictions on Distributions from Restricted Subsidiaries

	
52

	  	
SECTION 4.9

	
Limitation on Sales of Assets and Subsidiary Stock

	
54

	  	
SECTION 4.10    

	
Limitation on Affiliate Transactions

	
57

	  	
SECTION 4.11

	
Listing.

	
59

	  	
SECTION 4.12

	
Reports.

	
59

	  	
SECTION 4.13

	
Limitation on Lines of Business

	
60

	  	
SECTION 4.14

	
Restrictions on Business Activities of CET Group

	
61

	  	
SECTION 4.15

	
Change of Control and Rating Decline

	
61

	  	
SECTION 4.16

	
Additional Amounts

	
62

	  	
SECTION 4.17

	
Payment of Non-Income Taxes and Similar Charges

	
63

 

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	 	 	 	Page
	 	 	 	 
	  	
SECTION 4.18

	
Compliance Certificate; Notice of Default

	
63

	  	
SECTION 4.19

	
Merger, Amalgamation and Consolidation

	
63

	  	
SECTION 4.20

	
Payments for Consent.

	
66

	  	
SECTION 4.21

	
Limitations on Sale of Capital Stock of Restricted Subsidiaries

	
66

	  	
SECTION 4.22

	
Additional Guarantees

	
67

	  	
SECTION 4.23

	
Delivery of Security

	
67

	  	
SECTION 4.24

	
Impairment of Security Interest

	
68

	  	
SECTION 4.25

	
Additional Intercreditor Agreements

	
68

	  	  	  	  
	
ARTICLE V [RESERVED]

	
69

	  	  	  	  
	
ARTICLE VI DEFAULT AND REMEDIES

	
69

	  	
SECTION 6.1

	
Events of Default

	
69

	  	
SECTION 6.2

	
Acceleration

	
71

	  	
SECTION 6.3

	
Other Remedies

	
71

	  	
SECTION 6.4

	
The Trustee May Enforce Claims Without Possession of Securities

	
72

	  	
SECTION 6.5

	
Rights and Remedies Cumulative

	
72

	  	
SECTION 6.6

	
Delay or Omission Not Waiver

	
72

	  	
SECTION 6.7

	
Waiver of Past Defaults

	
72

	  	
SECTION 6.8

	
Control by Majority

	
73

	  	
SECTION 6.9

	
Limitation on Suits

	
73

	  	
SECTION 6.10

	
Rights of holders of the Notes to Receive Payment

	
73

	  	
SECTION 6.11

	
Collection Suit by Trustee

	
73

	  	
SECTION 6.12

	
Trustee May File Proofs of Claim

	
74

	  	
SECTION 6.13

	
Priorities

	
74

	  	
SECTION 6.14

	
Restoration of Rights and Remedies

	
74

	  	
SECTION 6.15

	
Undertaking for Costs

	
75

	  	
SECTION 6.16

	
Notices of Default

	
75

	  	  	  	  
	
ARTICLE VII TRUSTEE

	
75

	  	
SECTION 7.1

	
Duties of Trustee.

	
75

	  	
SECTION 7.2

	
Rights of Trustee

	
76

	  	
SECTION 7.3

	
Individual Rights of Trustee

	
78

	  	
SECTION 7.4

	
Trustee’s Disclaimer

	
78

	  	
SECTION 7.5

	
Notice of Default

	
78

	  	
SECTION 7.6

	
Compensation and Indemnity

	
79

	  	
SECTION 7.7

	
Replacement of Trustee

	
80

	  	
SECTION 7.8

	
Successor Trustee by Merger, etc.

	
81

	  	  	  	  
	
ARTICLE VIII SATISFACTION AND DISCHARGE OF INDENTURE

	
82

	  	
SECTION 8.1

	
Option to Effect Legal Defeasance or Covenant Defeasance

	
82

	  	
SECTION 8.2

	
Legal Defeasance and Discharge

	
82

	  	
SECTION 8.3

	
Covenant Defeasance

	
82

	  	
SECTION 8.4

	
Conditions to Legal or Covenant Defeasance

	
83

	  	
SECTION 8.5

	
Satisfaction and Discharge of Indenture

	
84

	  	
SECTION 8.6

	
Survival of Certain Obligations

	
84

	  	
SECTION 8.7

	
Acknowledgment of Discharge by Trustee

	
84

	  	
SECTION 8.8

	
Application of Trust Moneys

	
85

	  	
SECTION 8.9

	
Repayment to the Issuer; Unclaimed Money

	
85

	  	
SECTION 8.10    

	
Reinstatement

	
86

 

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	 	Page
	 	 
	
ARTICLE IX AMENDMENTS, SUPPLEMENTS AND WAIVERS

	
86

	  	
SECTION 9.1

	
Without Consent of holders of the Notes

	
86

	  	
SECTION 9.2

	
With Consent of Holders of Notes

	
87

	  	
SECTION 9.3

	
Revocation and Effect of Consents

	
89

	  	
SECTION 9.4

	
Notation on or Exchange of Notes

	
89

	  	
SECTION 9.5

	
Trustee to Sign Amendments, etc

	
89

	  	  	  	  
	
ARTICLE X GUARANTEES

	
89

	  	
SECTION 10.1

	
Guarantee.

	
89

	  	
SECTION 10.2

	
Limitation on Liability

	
90

	  	
SECTION 10.3

	
No Subrogation

	
90

	  	
SECTION 10.4

	
Release

	
90

	  	  	  	  
	
ARTICLE XI SECURITY AND SECURITY TRUSTEE

	
91

	  	
SECTION 11.1

	
Collateral and Security Documents

	
91

	  	
SECTION 11.2

	
Release of CET Collateral.

	
91

	  	
SECTION 11.3

	
Release of CME Collateral

	
92

	  	
SECTION 11.4

	
Rights of Trustee and the Paying Agent

	
94

	  	
SECTION 11.5

	
Parallel Debt.

	
94

	  	  	  	  
	
ARTICLE XII MISCELLANEOUS

	
96

	  	
SECTION 12.1

	
Notices

	
96

	  	
SECTION 12.2

	
Certificate and Opinion as to Conditions Precedent

	
99

	  	
SECTION 12.3

	
Statements Required in Certificate or Opinion

	
100

	  	
SECTION 12.4

	
Rules by Trustee, Paying Agent and Registrar

	
100

	  	
SECTION 12.5

	
Legal Holidays

	
100

	  	
SECTION 12.6

	
Governing Law

	
100

	  	
SECTION 12.7

	
Submission to Jurisdiction; Appointment of Agent for Service

	
101

	  	
SECTION 12.8

	
No Adverse Interpretation of Other Agreements

	
101

	  	
SECTION 12.9

	
No Personal Liability of Directors, Officers, Employees, Incorporators or Stockholders

	
101

	  	
SECTION 12.10

	
Currency Indemnity

	
102

	  	
SECTION 12.11

	
Currency Calculation

	
102

	  	
SECTION 12.12    

	
Successors

	
102

	  	
SECTION 12.13

	
Counterpart Originals

	
102

	  	
SECTION 12.14

	
Severability

	
102

	  	
SECTION 12.15

	
Table of Contents, Headings, etc.

	
103

 

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EXHIBITS

	
Exhibit A

	
-

	
Form of Note

	
Exhibit B

	
-

	
Form of Transfer Certificate for Transfer from U.S. Global Note to International Global Note

	
Exhibit C

	
-

	
Form of Transfer Certificate for Transfer from International Global Note to U.S. Global Note

	
Exhibit D

	
-

	
Form of Supplemental Indenture

 

NOTE:  This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture.

 

iv

 

INDENTURE, dated as of October 21, 2010 among (i) CET 21 SPOL. S R.O., a limited liability company incorporated under the laws of the Czech Republic (the “Issuer”), (ii) CENTRAL EUROPEAN MEDIA ENTERPRISES LTD., a company incorporated under the laws of Bermuda (the “CME”), (iii) CENTRAL EUROPEAN MEDIA ENTERPRISES N.V., a company organized and existing under the laws of the Netherlands Antilles (“CME NV”), (iv) CME MEDIA ENTERPRISES B.V., a private limited liability company organized and existing under the laws of the Netherlands (“CME BV”), (v) CME INVESTMENTS B.V., a private limited liability company organized and existing under the laws of the Netherlands (“CME Investments”), (vi) CME SLOVAK HOLDINGS B.V., a private limited liability company organized and existing under the laws of the Netherlands and (“CME Slovak”), (vii) MARKÍZA-SLOVAKIA, SPOL. S R.O., a limited liability company incorporated under the laws of the Slovak Republic (“Markiza” and, together with CME,  CME NV, CME BV, CME Investments, CME Slovak and any Additional Guarantors, the “Guarantors”), (viii) Citibank, N.A., London Branch, as Trustee, (ix) Citibank, N.A., London Branch, as Transfer Agent and Paying Agent and (x) Citigroup Global Markets Deutschland AG, as Registrar.

The Issuer has duly authorized the creation and issuance of its €170,000,000 Senior Secured Notes due 2017 (such notes, together with any Additional Notes (as defined herein), being referred to as the “Notes”); and, to provide therefor, the Issuer and the Guarantors have duly authorized the execution and delivery of this Indenture.  Except as otherwise provided herein, €170,000,000 in aggregate principal amount of Notes shall be initially issued on the date hereof.

Each party hereto agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the holders of the Notes:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1   Definitions

“2007 Notes” means CME’s €150.0 million aggregate principal amount of floating rate notes due 2014.

“2008 Convertible Notes” means CME’s US$ 475.0 million of 3.50% senior convertible notes due 2013.

“2009 Notes” means CME’s €440.0 million aggregate principal amount of 11.625% senior notes due 2016.

“Additional Assets” means:

(1)           any property or assets (other than Indebtedness and Capital Stock) to be used by CME or a Restricted Subsidiary in a Permitted Business;

(2)           the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by CME or a Restricted Subsidiary of CME; or

 

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(3)           Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary of CME;

provided, however, that, in the case of clauses (2) and (3), such Restricted Subsidiary is primarily engaged in a Permitted Business.

“Additional Amounts” shall have the meaning set forth in Section 4.16.

“Additional Guarantee” shall have the meaning set forth in Section 4.22.

“Additional Guarantor” means any Person that has provided an Additional Guarantee.

“Additional Notes” means any additional principal amounts of Notes issued from time to time under the terms of this Indenture after the Issue Date.

“Affiliate” of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control and provided further that PPF shall not be deemed an affiliate of CME or its Restricted Subsidiaries so long as its beneficial ownership in CME does not exceed 15% of the Voting Stock of CME.

“Affiliate Transaction” shall have the meaning set forth in Section 4.10.

“Agent” means the Paying Agent, any Registrar, Transfer Agent, Authenticating Agent or co-Registrar.

“Asset Disposition” means any direct or indirect sale, lease (other than an operating lease entered into in the ordinary course of business), transfer, issuance or other disposition, or a series of related sales, leases, transfers, issuances or dispositions that are part of a common plan, of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares), property or other assets (each referred to for the purposes of this definition as a “disposition”) by CME or any of its Restricted Subsidiaries, including any disposition by means of a merger, amalgamation, consolidation or similar transaction.

Notwithstanding the preceding, the following items shall not be deemed to be Asset Dispositions:

(1)           a disposition by a Restricted Subsidiary to CME or by CME or a Restricted Subsidiary to a Restricted Subsidiary;

(2)           the sale of Cash Equivalents in the ordinary course of business;

(3)           a disposition of inventory or other assets in the ordinary course of business;

(4)           a disposition of obsolete or worn out equipment or equipment that is no longer useful in the conduct of the business of CME and its Restricted Subsidiaries and that is disposed of in each case in the ordinary course of business;

 

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(5)           transactions permitted under Section 4.19;

(6)           an issuance of Capital Stock by a Restricted Subsidiary of CME to CME or to a Restricted Subsidiary;

(7)           for purposes of Section 4.9 only, the making of a Permitted Investment or a disposition subject to Section 4.4;

(8)           in addition to dispositions covered by the other clauses of this paragraph, dispositions of assets in a single transaction or series of related transactions with an aggregate fair market value in any calendar year of not more than €5 million;

(9)           dispositions in connection with Permitted Liens;

(10)          the licensing or sublicensing of intellectual property or other general intangibles and licenses, leases or subleases of other property in the ordinary course of business which do not materially interfere with the business of CME and its Restricted Subsidiaries;

(11)          dispositions of assets or Capital Stock by CME or any Restricted Subsidiary in connection with the making of an Investment permitted under clause (11) of the definition of “Permitted Investments”; and

(12)          foreclosure on assets.

“Asset Disposition Offer” shall have the meaning set forth in Section 4.9.

“Asset Disposition Offer Amount” shall have the meaning set forth in Section 4.9.

“Asset Disposition Offer Period” shall have the meaning set forth in Section 4.9.

“Asset Disposition Purchase Date” shall have the meaning set forth in Section 4.9.

“Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at the interest rate borne by the Notes, compounded semi-annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/Leaseback Transaction (including any period for which such lease has been extended).

“Authenticating Agent” shall have the meaning set forth in Section 2.2.

“Authorized Person” means any person who is designated in writing by the Issuer from time to time to give Instructions to the Trustee under the terms of this Indenture.

“Average Life” means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the sum of the products of the numbers of years from the date of determination to the dates of each successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied by the amount of such payment by (2) the sum of all such payments.

“Bankruptcy Law” means (i) for the purposes of the Issuer and the Guarantors, any bankruptcy, insolvency or other similar statute, regulation or provision of any jurisdiction in which the Issuer and the Guarantors are organized or are conducting business and (ii) for purposes of the Trustee and the holders of the Notes, Title 11, U.S. Code or any similar United States federal, state or foreign law for the relief of debtors.

 

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“Board of Directors” means the board of directors of CME or any committee thereof duly authorized to act on behalf of such board.

“Board Resolution” means a duly authorized resolution of the Board of Directors certified by an Officer and delivered to the Trustee.

“Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions in the State of New York, Bermuda, London or Prague or a place of payment are authorized or required by law to close.

“Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.

“Capitalized Lease Obligations” means an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation will be the capitalized amount of such obligation at the time any determination thereof is to be made as determined in accordance with GAAP, and the Stated Maturity thereof will be the date of the last payment of rent or any other amount due under such lease prior to the first date such lease may be terminated without penalty.

“Cash Equivalents” means:

(1)           securities issued or directly and fully guaranteed or insured by the United States Government, or the government of any member state of the European Union or any agency or instrumentality thereof (each a “Qualified Country A”) (provided that the full faith and credit of the Qualified Country A is pledged in support thereof), having maturities of not more than one year;

(2)           securities issued or directly and fully guaranteed or insured by Croatia or Ukraine or any agency or instrumentality thereof (each a “Qualified Country B”) (provided that the full faith and credit of the Qualified Country B is pledged in support thereof), having maturities of not more than 30 days;

(3)           marketable general obligations issued by any political subdivision of any Qualified Country A or any public instrumentality thereof maturing within one year from the date of acquisition thereof (provided that the full faith and credit of the Qualified Country A is pledged in support thereof) and, at the time of acquisition, having a credit rating of “A” or better from either Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.;

(4)           marketable general obligations issued by any political subdivision of any Qualified Country B or any public instrumentality thereof maturing within 30 days from the date of acquisition thereof (provided that the full faith and credit of the Qualified Country B is pledged in support thereof) and, at the time of acquisition, having a credit rating of “A” or better from either Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.;

 

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(5)           certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers’ acceptances having maturities of not more than one year from the date of acquisition thereof issued by any bank the long-term debt of which is rated at the time of acquisition thereof at least “A” or the equivalent thereof by Standard & Poor’s Ratings Services, or “A” or the equivalent thereof by Moody’s Investors Service, Inc., and having combined capital and surplus in excess of US$500 million;

(6)           repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (1), (2) and (3) entered into with any bank meeting the qualifications specified in clause (5) above;

(7)           commercial paper rated at the time of acquisition thereof at least “A-2” or the equivalent thereof by Standard & Poor’s Ratings Services or “P-2” or the equivalent thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by an internationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in any case maturing within one year after the date of acquisition thereof; and

(8)           interests in any investment company or money market fund which invests solely in instruments of the type specified in clauses (1) through (5) above.

“CET Collateral” means:

(a)           all of the ownership interests in the Issuer;

(b)           all of the shares of CME Slovak Holdings B.V.;

(c)           the 100% ownership interest in Media Pro Pictures s.r.o;

(d)           to the extent provided for by the terms and conditions of this Indenture, the Security Documents and the CET Group Intercreditor Agreement, substantially all of the assets of the Issuer, including its immovable assets, its movable assets, its bank accounts, certain insurance, certain advertising receivables and its enterprise as a whole;

(e)           to the extent provided for by the terms and conditions of this Indenture, the Security Documents and the CET Group Intercreditor Agreement, all present and future material intercompany loans due to the Issuer and any member of the CET Group from CME or any subsidiary of CME that is not a member of the CET Group;

(f)            the shareholder loan from CME Investments B.V. to MARKÍZA SLOVAKIA, spol. s r.o.;

(g)           the shareholder loan from CME Investments B.V. to the Issuer; and

(h)           any other asset in the future subject to a lien in favor of the Security Agent to be administered under the CET Group Intercreditor Agreement.

“CET Consolidated EBITDA” means “Consolidated EBITDA” calculated in respect of the CET Group.

 

5

 

“CET Consolidated Indebtedness” means Indebtedness of any member of the CET Group, other than Permitted Intercompany Debt or Indebtedness that is secured on the CET Collateral, calculated on a consolidated basis.

“CET Group” means the Issuer and its Subsidiaries, other than Subsidiaries in liquidation on the Issue Date.

“CET Group Intercreditor Agreement” means the CET Group Intercreditor Agreement dated the Issue Date between the Issuer, the Guarantors, the Trustee, the Facility Agent in respect of the Revolving Credit Facility and the Security Agent.

“CET Guarantor” means CME Slovak, CME Investments and Markiza.

“CET Leverage Ratio” means, for the Issuer as of any date of determination, the ratio of (x) CET Consolidated Indebtedness at such date to (y) the aggregate amount of CET Consolidated EBITDA for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which consolidated financial statements of the CET Group are available, provided, however, that for the purposes of calculating CET Consolidated EBITDA for such period, if, as of such date of determination:

(1)           since the beginning of such period the Issuer or any Restricted Subsidiary thereof will have disposed of any company, any business, or any group of assets constituting an operating unit of a business (any such disposition, a “Sale”) or if the transaction giving rise to the need to calculate the CET Leverage Ratio is such a Sale, CET Consolidated EBITDA for such period will be reduced by an amount equal to the CET Consolidated EBITDA (if positive) attributable to the assets which are the subject of such Sale for such period or increased by an amount equal to the CET Consolidated EBITDA (if negative) attributable thereto for such period;

(2)           since the beginning of such period the Issuer or any Restricted Subsidiary thereof (by merger or otherwise) will have made an Investment in any Person that thereby becomes a Restricted Subsidiary, or otherwise acquires any company, any business, or any group of assets constituting an operating unit of a business (any such Investment or acquisition, a “Purchase”) including any such Purchase occurring in connection with a transaction causing a calculation to be made hereunder, CET Consolidated EBITDA for such period will be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day of such period; and

(3)           since the beginning of such period any other Person (that became a Restricted Subsidiary of the Issuer or was merged with or into the first Person or any Restricted Subsidiary thereof since the beginning of such period) will have made any Sale or any Purchase that would have required an adjustment pursuant to clause (1) or (2) above if made by the first Person or a Restricted Subsidiary thereof since the beginning of such period, CET Consolidated EBITDA for such period will be calculated after giving pro forma effect thereto as if such Sale or Purchase occurred on the first day of such period.

For purposes of this definition in determining the amount of Indebtedness outstanding on any date of determination, pro forma effect shall be given to any Incurrence, repayment, repurchase, defeasance or other acquisition, retirement or discharge of Indebtedness on such date.

 

6

 

“CET Security Documents” means any security document pursuant to which a lien is granted now or in future for the benefit of the holders of the Notes (other than in respect of the CME Collateral).

"Change in Tax Law" means

(1)           a change in or an amendment to the laws or treaties (including any regulations, protocols or rulings promulgated thereunder) of any Relevant Taxing Jurisdiction affecting taxation; or

(2)           any change in or amendment to the official application, administration or interpretation of such laws or treaties (including the decision of any court, governmental agency or tribunal),

which change or amendment is announced or becomes effective on or after October 14, 2010 (or if later, the date on which the Issuer or any Guarantor becomes a company organized under the laws of such jurisdiction).

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

(1)           any “person” or “group” of related persons, other than one or more Permitted Holders, is or becomes the beneficial owner, directly or indirectly, of more than 35% of the total voting power of the Voting Stock of CME, and the Permitted Holders beneficially own, directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of CME than such person or group;

(2)           the sale, lease, transfer, conveyance or other disposition (other than by way of merger, amalgamation or consolidation), in one or a series of related transactions, of all or substantially all of the assets of (i) CME and its Restricted Subsidiaries or (ii) the Issuer, in each case, taken as a whole, to any “person” other than the Permitted Holders;

(3)           the first day on which a majority of the members of the Board of Directors are not Continuing Directors;

(4)           the adoption by the shareholders of CME of a plan relating to the liquidation or dissolution of CME;

(5)           the adoption by the shareholders of the Issuer of a plan relating to the liquidation or dissolution of the Issuer; or

(6)           CME ceases to beneficially own, directly or indirectly, 100% of the Capital Stock of the Issuer.

For the purposes of this definition: (a) “person” and “group” have the meanings they have in Sections 13(d) and 14(d) of the U.S. Exchange Act; (b) “beneficial owner” is used as defined in Rules 13d-3 and 13d-5 under the U.S. Exchange Act, except that a person shall be deemed to have “beneficial ownership” of all shares that such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time; (c) a person will be deemed to beneficially own any Voting Stock of an entity held by a parent entity, if such person is the beneficial owner, directly or indirectly, of more than 35% of the voting power of the Voting Stock of such parent entity and the Permitted Holders beneficially own, directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent entity; and (d) a “Continuing Director” means any member of the Board of Directors who was a member of such Board of Directors on the Issue Date or was nominated for election or was elected to the Board of Directors with the approval of the majority of Continuing Directors who were members of the Board of Directors at the time of such nomination or election.

 

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“Change of Control Offer” shall have the meaning set forth in Section 4.14.

“Change of Control Payment” shall have the meaning set forth in Section 4.14.

“Change of Control Payment Date” shall have the meaning set forth in Section 4.14.

“Change of Control Triggering Event” means the occurrence of a Change of Control; provided, however, that if the Change of Control is an event described in clauses (1) through (4) (other than sub-clause (ii) of clause (2)) of the definition thereof, it shall not constitute a Change of Control Triggering Event unless and until a Ratings Decline also shall have occurred.

 “Clearing Agency” means one or more of Euroclear, Clearstream, or the successor of either of them, in each case acting directly, or through a custodian, nominee or depository.

“Clearstream” means Clearstream Banking, société anonyme.

“CME Collateral” means a fourth-priority pledge of the shares of CME NV and the shares of CME BV owned by CME NV, together with any future assets pledged under the CME Security Documents.

“CME Existing Notes” means the 2007 Notes, 2008 Convertible Notes and 2009 Notes, in each case, outstanding on the Issue Date.

“CME Group” means CME and its Subsidiaries (excluding the Issuer and its Subsidiaries).

“CME Security Documents” means the pledge agreements dated as of the Issue Date relating to the shares of CME NV and the shares of CME BV owned by CME NV and any other security document pursuant to which a lien is granted in the future for the benefit of the holders of the Notes (other than assets of or interests in the CET Collateral).

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

“Collateral” means the CET Collateral and the CME Collateral.

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

“Common Depositary” means Citibank, N.A., London Branch.

“Common Stock” means with respect to any Person, any and all shares, interest or other participations in, and other equivalents (however designated and whether voting or nonvoting) of such Person’s common stock whether or not outstanding on the Issue Date, and includes, without limitation, all series and classes of such common stock.

 

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“Company Order” means a written order or request signed in the name of the Issuer or a Guarantor by an Officer or duly authorized members of the board of directors, management board or similar corporate governing body, as applicable.

“Consolidated Coverage Ratio” means as of any date of determination, with respect to any Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which financial statements are in existence to (y) Consolidated Interest Expense for such four fiscal quarters, provided, however, that:

(1)           if CME or any Restricted Subsidiary:

(a)           has Incurred any Indebtedness since the beginning of such period that remains outstanding on such date of determination or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the first day of such period (except that in making such computation, the amount of Indebtedness under any revolving credit facility outstanding on the date of such calculation will be deemed to be (i) the average daily balance of such Indebtedness during such four fiscal quarters or such shorter period for which such facility was outstanding or (ii) if such facility was created after the end of such four fiscal quarters, the average daily balance of such Indebtedness during the period from the date of creation of such facility to the date of such calculation) and the discharge of any other Indebtedness repaid, repurchased, defeased or otherwise discharged with the proceeds of such new Indebtedness as if such discharge had occurred on the first day of such period; or

(b)           has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the beginning of the period that is no longer outstanding on such date of determination or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid and the related commitment terminated), Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving effect on a pro forma basis to such discharge of such Indebtedness, including with the proceeds of such new Indebtedness, as if such discharge had occurred on the first day of such period;

(2)           if since the beginning of such period CME or any Restricted Subsidiary will have made any Asset Disposition or disposed of any company, division, operating unit, segment, business, group of related assets or line of business or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is such an Asset Disposition:

(a)           the Consolidated EBITDA for such period will be reduced by an amount equal to the Consolidated EBITDA (if positive) directly attributable to the assets which are the subject of such Asset Disposition for such period or increased by an amount equal to the Consolidated EBITDA (if negative) directly attributable thereto for such period; and

(b)           Consolidated Interest Expense for such period will be reduced by an amount equal to the Consolidated Interest Expense directly attributable to any Indebtedness of CME or any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with respect to CME and its continuing Restricted Subsidiaries in connection with such Asset Disposition for such period (or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent CME and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such sale);

 

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(3)           if since the beginning of such period CME or any Restricted Subsidiary (by merger or otherwise) will have made an Investment in any Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary or is merged with or into CME) or an acquisition of assets, including any acquisition of assets occurring in connection with a transaction causing a calculation to be made hereunder, which constitutes all or substantially all of a company, division, operating unit, segment, business, group of related assets or line of business, Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving pro forma effect thereto (including the Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first day of such period; and

(4)           if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was merged with or into CME or any Restricted Subsidiary since the beginning of such period) will have Incurred any Indebtedness or discharged any Indebtedness, made any Asset Disposition or any Investment or acquisition of assets that would have required an adjustment pursuant to clause (2) or (3) above if made by CME or a Restricted Subsidiary during such period, Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving pro forma effect thereto as if such Asset Disposition or Investment or acquisition of assets occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to any calculation under this definition, the pro forma calculations will be determined in good faith by a responsible financial or accounting officer of CME (including pro forma expense and cost reductions calculated on a basis consistent with Regulation S-X under the Securities Act). If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on such Indebtedness will be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Interest Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term in excess of 12 months). If any Indebtedness that is being given pro forma effect bears an interest rate at the option of CME, the interest rate shall be calculated by applying such optional rate chosen by CME.

“Consolidated EBITDA” for any period with respect to any specified Person means, without duplication, the Consolidated Net Income for such period of such Person, plus the following to the extent deducted in calculating such Consolidated Net Income:

(1)           Consolidated Interest Expense;

(2)           Consolidated Income Taxes;

(3)           consolidated depreciation expense;

(4)           consolidated amortization of intangibles (other than amortization of programming assets);

 

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(5)           other non-cash charges reducing Consolidated Net Income (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid in a prior period not included in the calculation); and

(6)           minority interest in (income)/loss of consolidated subsidiaries,

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

“Consolidated Income Taxes” means, with respect to any Person for any period, taxes imposed upon such Person or other payments required to be made by such Person by any governmental authority which taxes or other payments are calculated by reference to the income or profits of such Person or such Person and its Restricted Subsidiaries (to the extent such income or profits were included in computing Consolidated Net Income for such period), regardless of whether such taxes or payments are required to be remitted to any governmental authority.

“Consolidated Interest Expense” means, for any period, the total interest expense of CME and its consolidated Restricted Subsidiaries, whether paid or accrued, plus, to the extent not included in such interest expense:

(1)           interest expense attributable to Capitalized Lease Obligations and the interest portion of rent expense associated with Attributable Indebtedness in respect of the relevant lease giving rise thereto, determined as if such lease were a capitalized lease in accordance with GAAP and the interest component of any deferred payment obligations;

(2)           amortization of debt discount and debt issuance cost;

(3)           non-cash interest expense;

(4)           commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing;

(5)           interest actually paid by CME or any such Restricted Subsidiary under any guarantee of Indebtedness or other obligation of any other Person;

(6)           net costs associated with Hedging Obligations (including amortization of fees);

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

(8)           all dividends paid or payable in cash, Cash Equivalents or Indebtedness or accrued during such period on any series of Disqualified Stock of such Person or on Preferred Stock of its Restricted Subsidiaries payable to a party other than CME or a Restricted Subsidiary; and

(9)           the cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to any Person (other than CME) in connection with Indebtedness Incurred by such plan or trust; provided, however, that there will be excluded therefrom any such interest expense of any Unrestricted Subsidiary to the extent the related Indebtedness is not guaranteed or paid by CME or any Restricted Subsidiary.

 

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Notwithstanding the foregoing, any capitalized or other costs incurred by CME and its Restricted Subsidiaries relating to the early extinguishment of Indebtedness shall not be included in the calculation of Consolidated Interest Expense.

For purposes of the foregoing, total interest expense will be determined after giving effect to any net payments made or received by CME and its Subsidiaries with respect to Interest Rate Agreements.

“Consolidated Net Income” means, for any period, the net income (loss) of CME and its consolidated Restricted Subsidiaries determined in accordance with GAAP; provided, however, that there will not be included in such Consolidated Net Income:

(1)           any net income (loss) of any Person if such Person is not a Restricted Subsidiary, except that:

(a)           subject to the limitations contained in clauses (3), (4) and (5) below, CME’s equity in the net income of any such Person for such period will be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to CME or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (2) below); and

(b)           CME’s equity in a net loss of any such Person (other than an Unrestricted Subsidiary) for such period will be included in determining such Consolidated Net Income to the extent such loss has been funded with cash from CME or a Restricted Subsidiary;

(2)           any net income (but not loss) of any Restricted Subsidiary if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted Subsidiary, directly or indirectly, to CME, except that:

(a)           subject to the limitations contained in clauses (3), (4) and (5) below, CME’s equity in the net income of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to CME or another Restricted Subsidiary as a dividend or distribution paid or permitted to be paid, directly or indirectly, by loans, advances, intercompany transfers or otherwise (for so long as permitted) to CME or a Restricted Subsidiary (subject, in the case of such a dividend or distribution to another Restricted Subsidiary, to the limitation contained in this clause); and

(b)           CME’s equity in a net loss of any such Restricted Subsidiary for such period will be included in determining such Consolidated Net Income;

(3)           any gain (loss) realized upon the sale or other disposition of any property, plant or equipment of CME or its consolidated Restricted Subsidiaries (including pursuant to any Sale/Leaseback Transaction) which is not sold or otherwise disposed of in the ordinary course of business and any gain (loss) realized upon the sale or other disposition of any Capital Stock of any Person;

(4)           any extraordinary gain or loss;

 

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(5)           any foreign exchange gains or losses; and

(6)           the cumulative effect of a change in accounting principles.

“Credit Facility” means one or more debt facilities (including the existing credit facilities) in the form of loan agreements, revolving credit facilities, overdraft facilities, working capital facilities, syndicated credit facilities, letters of credit and other facilities provided by commercial banks and other financial institutions as each such facility may be amended, restated, modified, renewed, refunded, replaced, restructured or refinanced in whole or in part from time to time.

“Covenant Defeasance” shall have the meaning set forth in Section 8.3.

“Currency Agreement” means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement as to which such Person is a party or a beneficiary.

“Custodian” means any receiver, trustee, assignee, liquidator, examiner, administrator, sequestration or similar official under any Bankruptcy Law.

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

“Default Interest Payment Date” shall have the meaning set forth in Section 2.13.

“Definitive Notes” means Notes in definitive registered form substantially in the form of Exhibit A hereto.

“Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event:

(1)           matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

(2)           is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock which is convertible or exchangeable solely at the option of CME or a Restricted Subsidiary); or

(3)           is redeemable at the option of the holder of the Capital Stock thereof, in whole or in part,

in each case on or prior to the date that is 91 days after the date (a) on which the Notes mature or (b) on which there are no Notes outstanding, provided that only the portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date will be deemed to be Disqualified Stock; provided, further, that any Capital Stock that would constitute Disqualified Stock solely because the holders thereof have the right to require CME to repurchase such Capital Stock upon the occurrence of a change of control or asset sale (each defined in a substantially identical manner to the corresponding definitions in this Indenture) shall not constitute Disqualified Stock if the terms of such Capital Stock (and all such securities into which it is convertible or for which it is ratable or exchangeable) provide that CME may not repurchase or redeem any such Capital Stock (and all such securities into which it is convertible or for which it is ratable or exchangeable) pursuant to such provision prior to compliance by CME with Sections 4.9, 4.15 and 4.21 and such repurchase or redemption complies with Section 4.4.

 

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“Equity Offering” means any private or public sale by CME of Equity Interests (other than Disqualified Stock) of CME.

“Euroclear” means Euroclear Bank S.A./N.V.

“Existing Intercreditor Agreement” means the Intercreditor Agreement originally dated July 21, 2006, between CME, the trustees in respect of the CME Existing Notes and the other parties thereto, as amended and restated on the Issue Date.

 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time, including those set forth in the opinions and the pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and the Public Company Accounting Oversight Board and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession. All ratios and computations based on GAAP contained in this Indenture will be computed in conformity with GAAP. Notwithstanding the foregoing, CME (and its Subsidiaries) or the Issuer (and its Subsidiaries), or both of them, may elect to apply International Financial Reporting Standards (“IFRS”), in lieu of GAAP, for purposes of reports, ratios, computations and definitions identified or determined with reference to CME and its Restricted Subsidiaries or the Issuer and its Restricted Subsidiaries, respectively, and, upon such election, references herein to GAAP that relate to any such report, ratio, computation or definition shall thereafter be construed to mean IFRS to the extent so adopted, as in effect from time to time after such election; provided that any such election once made shall be notified to the Trustee and shall be irrevocable.

“Government Obligations” means direct non-callable and non-redeemable obligations (in each case, with respect to the issuer thereof) of any member state of the European Union that is a member of the European Union as of the Issue Date or of the United States of America (including, in each case, any agency or instrumentality thereof), as the case may be, the payment of which is secured by the full faith and credit of the applicable member state or of the United States of America, as the case may be.

“Guarantee” means, individually, any guarantee of payment of the Notes and amounts due under this Indenture by a Guarantor pursuant to the terms of this Indenture and any supplemental indenture thereto (including any Additional Guarantees), and collectively, all such Guarantees. Each such Guarantee will be substantially in a form prescribed in Article X or Exhibit D hereto, as applicable.

“Guarantor” shall have the meaning ascribed to the term in the Preamble to this Indenture.

“Hedging Obligations” of any Person means the obligations of such Person pursuant to any Interest Rate Agreement or Currency Agreement.

“Incur” means issue, create, assume, guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger, amalgamation, consolidation, acquisition or otherwise) will be deemed to be incurred by such Restricted Subsidiary at the time it becomes a Restricted Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

 

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“Indebtedness” means, with respect to any Person on any date of determination (without duplication):

(1)           the principal of and premium (if any) in respect of indebtedness of such Person for borrowed money;

(2)           the principal of and premium (if any) in respect of obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

(3)           the principal component of all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments (including reimbursement obligations with respect thereto except to the extent such reimbursement obligation relates to a trade payable and such obligation is satisfied within 30 days of Incurrence);

(4)           the principal component of all obligations of such Person to pay the deferred and unpaid purchase price of property (except trade payables), which purchase price is due more than six months after the date of placing such property in service or taking delivery and title thereto;

(5)           Capitalized Lease Obligations and all Attributable Indebtedness of such Person;

(6)           the principal component or liquidation preference of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified Stock or, with respect to any Subsidiary, any Preferred Stock (but excluding, in each case, any accrued dividends);

(7)           the principal component of all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; provided, however, that the amount of such Indebtedness will be the lesser of (a) the fair market value of such asset at such date of determination and (b) the amount of such Indebtedness of such other Persons;

(8)           the principal component of Indebtedness of other Persons to the extent guaranteed by such Person; and

(9)           to the extent not otherwise included in this definition, net obligations of such Person under Currency Agreements and Interest Rate Agreements (the amount of any such obligations to be equal at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such Person at such time).

The amount of Indebtedness of any Person at any date will be the outstanding balance at such date of all unconditional obligations as described above and the maximum liability, upon the occurrence of the contingency giving rise to the obligation, of any contingent obligations at such date.

 

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In addition, “Indebtedness” of any Person shall include Indebtedness described in the preceding paragraph that would not appear as a liability on the balance sheet of such Person if:

(1)           such Indebtedness is the obligation of a partnership or Joint Venture that is not a Restricted Subsidiary;

(2)           such Person or a Restricted Subsidiary of such Person is a general partner of the Joint Venture (a “General Partner”); and

(3)           there is recourse, by contract or operation of law, with respect to the payment of such Indebtedness to property or assets of such Person or a Restricted Subsidiary of such Person; and then such Indebtedness shall be included in an amount not to exceed:

(a)           the lesser of (i) the net assets of the General Partner and (ii) the amount of such obligations to the extent that there is recourse, by contract or operation of law, to the property or assets of such Person or a Restricted Subsidiary of such Person; or

(b)           if less than the amount determined pursuant to clause (a) immediately above, the actual amount of such Indebtedness that is recourse to such Person or a Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a writing and is for a determinable amount and the related interest expense shall be included in Consolidated Interest Expense to the extent actually paid by CME or its Restricted Subsidiaries.

“Indenture” means this Indenture, as amended, modified or supplemented from time to time in accordance with the terms hereof.

“Instructions” means any written notices, written directions or written instructions received by any Agent in accordance with the provisions of this Indenture from an Authorized Person.

“Interest Rate Agreement” means, with respect to any Person, any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement or arrangement as to which such Person is party or a beneficiary.

“International Global Note” shall have the meaning set forth in Section 2.1 hereof.

“International Notes” shall have the meaning set forth in Section 2.1 hereof.

“Investment” means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the form of any direct or indirect advance, loan (other than advances to customers in the ordinary course of business) or other extension of credit (including by way of guarantee or similar arrangement, but excluding any debt or extension of credit represented by a bank deposit other than a time deposit) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person and all other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP; provided that none of the following will be deemed to be an Investment:

 

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(1)           Hedging Obligations entered into in the ordinary course of business and in compliance with this Indenture;

(2)           endorsements of negotiable instruments and documents in the ordinary course of business; and

(3)           an acquisition of assets, Capital Stock or other securities by CME or a Subsidiary for consideration to the extent such consideration consists of common equity securities of CME.

For purposes of Section 4.4:

(1)           “Investment” will include the portion (proportionate to CME’s equity interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the fair market value of the net assets of such Restricted Subsidiary of CME at the time that such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, CME will be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to (a) CME’s “Investment” in such Subsidiary at the time of such redesignation less (b) the portion (proportionate to CME’s equity interest in such Subsidiary) of the fair market value of the net assets (as conclusively determined by the Board of Directors in good faith) of such Subsidiary at the time that such Subsidiary is so redesignated a Restricted Subsidiary; and

(2)           any property transferred to or from an Unrestricted Subsidiary will be valued at its fair market value at the time of such transfer, in each case as determined in good faith by the Board of Directors. If CME or any Restricted Subsidiary of CME sells or otherwise disposes of any Voting Stock of any Restricted Subsidiary of CME such that, after giving effect to any such sale or disposition, such entity is no longer a Subsidiary of CME, CME shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value (as conclusively determined by the Board of Directors in good faith) of the Capital Stock of such Subsidiary not sold or disposed of.

“Issue Date” means the date on which the Notes are originally issued.

“Joint Venture” means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership that is not a Restricted Subsidiary in which CME or any Subsidiary has an interest from time to time.

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof).

“Material Intercompany Debt” means a loan made pursuant to clause (2) of Section 4.3(b) if the principal amount thereof exceeds in the aggregate €4.0 million.

“Material Subsidiary” means any Restricted Subsidiary of the Issuer whose gross assets or earnings before interest, taxes, depreciation and amortization calculated on the same basis as Consolidated EBITDA (in each case excluding intra-group items) are equal to or exceed 7.5% of the consolidated gross assets or Consolidated EBITDA of the Issuer and its Restricted Subsidiaries, in each case excluding intragroup items, and as determined by reference to the most recently delivered audited accounts delivered to the Trustee pursuant to this Indenture.

 

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“Moody’s” means Moody’s Investor Service, Inc. or its successor.

“Net Available Cash” from an Asset Disposition means cash payments received (including any cash payments received by way of deferred payment of principal pursuant to a Note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the acquiring person of Indebtedness or other obligations relating to the properties or assets that are the subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case net of:

(1)           all legal, accounting, investment banking, title and recording tax expenses, commissions and other fees and expenses incurred, and all national, provincial, and local taxes required to be paid or accrued as a liability under GAAP (after taking into account any available tax credits or deductions and any tax sharing agreements), as a consequence of such Asset Disposition;

(2)           all payments made on any Indebtedness which is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon such assets, or which must by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law be repaid out of the proceeds from such Asset Disposition;

(3)           all distributions and other payments required to be made to minority interest holders in Subsidiaries or Joint Ventures as a result of such Asset Disposition; and

(4)           the deduction of appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the assets disposed of in such Asset Disposition and retained by CME or any Restricted Subsidiary after such Asset Disposition.

“Net Cash Proceeds” with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other fees and charges actually incurred and paid in connection with such issuance or sale and net of taxes paid or payable as a result of such issuance or sale (after taking into account any available tax credit or deductions and any tax sharing arrangements).

“Non-Recourse Debt” means Indebtedness:

(1)           as to which neither CME nor any Restricted Subsidiary (a) provides any guarantee or credit support of any kind (including any undertaking, guarantee, indemnity, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable (as a guarantor or otherwise); and

(2)           no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit (upon notice, lapse of time or both) any holder of any other Indebtedness of CME or any Restricted Subsidiary to declare a default under such other Indebtedness or cause the payment thereof to be accelerated or payable prior to its stated maturity.

 

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“Notes” shall have the meaning set forth in the preamble of this Indenture.

 “Offering Memorandum” means the Offering Memorandum, dated October 14, 2010, relating to the Notes.

“Officer” means the Chief Executive Officer, Chief Operating Officer, the Chief Financial Officer, the Deputy Chief Financial Officer, any Vice President, any Executive Director or the Secretary of CME or the Issuer, as applicable.

“Officers’ Certificate” means a certificate signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of CME, or in the case of an Officers’ Certificate of the Issuer, by two Officers of the Issuer.

“Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to CME or the Trustee.

“Original Notes” shall have the meaning set forth in the preamble to this Indenture.

“Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to the Notes and, in relation to the application of proceeds of Asset Dispositions of CET Collateral, is secured on a basis that is entitled to share ratably in the proceeds of such CET Collateral.

“Paying Agent” shall have the meaning set forth in Section 2.3.

“Payor” shall mean the Issuer, any Guarantor or a successor of any thereof.

“Permitted Business” means (a) any business conducted by CME and any of its Restricted Subsidiaries on the Issue Date, (b) any reasonable extension of such business and (c) any business reasonably related, ancillary or complementary thereto.

“Permitted Collateral Liens” means:

(A)          Liens on the CET Collateral:

(i)            arising by operation of law that are described in one or more of clauses (3), (4), (5), (7), (10), (12) or (14) of the definition of “Permitted Liens” and any extension, renewal or replacement, in whole or in part, of any such Lien; provided that any such extension, renewal or replacement will not interfere with the Trustee’s ability to enforce the Notes, the Guarantees or the security over the CET Collateral;

(ii)            to secure Indebtedness of a member of the CET Group, which Indebtedness is permitted to be Incurred under clauses (1), (3) or (11) of Section 4.3(b) and any Refinancing Indebtedness in respect of such Indebtedness; provided that the lenders of such Indebtedness or their duly authorized representatives accede to the CET Group Intercreditor Agreement;

(iii)           to secure Indebtedness incurred under Section 4.3(a), and subject to Section 4.3(c) provided that after giving pro forma effect to such incurrence on that date and the application of the proceeds thereof, the CET Leverage Ratio is less than 2.25:1; and provided further that the lenders of such Indebtedness or their duly authorized representatives accede to the CET Group Intercreditor Agreement;

 

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(iv)          Liens in existence on the Issue Date to be discharged upon application of the proceeds of the Notes issued on the Issue Date, pending such discharge.

(B)           Liens on the CME Collateral:

(i)            arising by operation of law that are described in one or more of clauses (3), (4) or (5) of the definition of “Permitted Liens;”

(ii)           to secure Indebtedness of CME or any Restricted Subsidiary of CME, which Indebtedness is permitted to be Incurred under clauses (1), (3) or (11) of Section 4.3(b), or which is in existence on the Issue Date, and any Refinancing Indebtedness in respect of such Indebtedness; provided that the lenders of such Indebtedness or their duly authorized representatives become party to the Existing Intercreditor Agreement;

(iii)          to secure Indebtedness incurred under Section 4.3(a), and subject to Section 4.3(c), provided that the lenders of such Indebtedness or their duly authorized representatives become party to the Existing Intercreditor Agreement.

“Permitted Holders” means (a) each beneficial holder of CME’s Class B Common Stock on the Issue Date, (b) family members of any beneficial holder of CME’s Class B Common Stock on the Issue Date, (c) trusts, the only beneficiaries of which are persons or entities described in (a) and (b) above, and (d) partnerships, corporations, or limited liability companies which are controlled by the persons or entities described in (a) and (b) above.

“Permitted Intercompany Debt” means any Indebtedness as to which a member of the CET Group is an obligor and CME or any Restricted Subsidiary is the lender; provided that if such Indebtedness is also Material Intercompany Debt, the lender’s claim has been validly pledged to the Trustee for the benefit of holders of the Notes or the Indebtedness (i) does not mature and is not redeemable at the option of the member of the lender prior to the fifth anniversary of the Issue Date, (ii) is not amortizing, and (iii) allows for interest payments to be capitalized (and does not require payment of interest in cash) by the borrower or recipient of the loan or extension of credit prior to the fifth anniversary of the Issue Date.

“Permitted Investment” means an Investment by CME or any Restricted Subsidiary in:

(1)           CME or a Restricted Subsidiary or a Person which will, upon the making of such Investment, become a Restricted Subsidiary; provided, however, that the primary business of such Restricted Subsidiary is a Permitted Business;

(2)           another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all of its assets to, CME or a Restricted Subsidiary; provided, however, that such Person’s primary business is a Permitted Business;

(3)           cash and Cash Equivalents;

(4)           receivables owing to CME or any Restricted Subsidiary created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as CME or any such Restricted Subsidiary deems reasonable under the circumstances;

 

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(5)           payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business;

(6)           loans or advances to employees (other than executive directors) made in the ordinary course of business consistent with past practices of CME or such Restricted Subsidiary;

(7)           Capital stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to CME or any Restricted Subsidiary or in satisfaction of judgments or pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of a debtor;

(8)           Investments made as a result of the receipt of non-cash consideration from an Asset Disposition that was made pursuant to and in compliance with Section 4.9;

(9)           Investments in existence on the Issue Date;

(10)         Currency Agreements, Interest Rate Agreements and related Hedging Obligations, which transactions or obligations are Incurred in compliance with Section 4.3;

(11)         Investments by CME or a Restricted Subsidiary in Joint Ventures with another Person for the purpose of engaging in a Permitted Business; provided that CME is able to Incur an additional €1.00 of Indebtedness pursuant to clause (a) of Section 4.3 after giving effect, on a pro forma basis, to such Investment;

(12)         Investments by CME or any of its Restricted Subsidiaries, together with all other Investments pursuant to this clause (12), in an aggregate amount at the time of such Investment not to exceed €40 million outstanding at any one time; and

(13)         guarantees issued in accordance with Section 4.3.

“Permitted Liens” means, with respect to any Person:

(1)           Liens securing Indebtedness and other obligations under a Credit Facility permitted to be Incurred under clause (1) of Section 4.3(b) of this Indenture, provided that such Indebtedness is not also secured on the Collateral;

(2)           Liens securing Indebtedness and other obligations Incurred under clause (11) of Section 4.3(b), provided that such Indebtedness is not also secured on the Collateral;

(3)           pledges or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or Government Obligations to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case Incurred in the ordinary course of business;

(4)           Liens imposed by law, including carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate proceedings if a reserve or other appropriate provisions, if any, as shall be required by GAAP, shall have been made in respect thereof;

 

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(5)           Liens for taxes, assessments or other governmental charges not yet subject to penalties for non-payment or which are being contested in good faith by appropriate proceedings, provided appropriate reserves required pursuant to GAAP have been made in respect thereof;

(6)           Liens in favor of issuers of surety or performance bonds or letters of credit or bankers’ acceptances issued pursuant to the request of and for the account of such Person in the ordinary course of its business; provided, however, that such letters of credit do not constitute Indebtedness;

(7)           encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties or liens incidental to the conduct of the business of such Person or to the ownership of its properties which do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

(8)           Liens securing Hedging Obligations so long as the related Indebtedness is, and is permitted to be under this Indenture, secured by a Lien on the same property securing such Hedging Obligation;

(9)           leases and subleases of real property which do not materially interfere with the ordinary conduct of the business of CME or any of its Restricted Subsidiaries;

(10)          judgment Liens not giving rise to an Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated for the review of such judgment have not been finally terminated or the period within which such proceedings may be initiated has not expired;

(11)         Liens for the purpose of securing the payment of all or a part of the purchase price of, or Capitalized Lease Obligations with respect to, assets or property acquired or constructed in the ordinary course of business; provided that:

(a)           the aggregate principal amount of Indebtedness secured by such Liens is otherwise permitted to be Incurred under this Indenture and does not exceed the cost of the assets or property so acquired or constructed; and

(b)           such Liens are created within 180 days of construction or acquisition of such assets or property and do not encumber any other assets or property of CME or any Restricted Subsidiary other than such assets or property and assets affixed or appurtenant thereto;

(12)         Liens arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a depositary institution; provided that such deposit account is not intended by CME or any Restricted Subsidiary to provide collateral to the depository institution;

 

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(13)         Liens arising from United States Uniform Commercial Code financing statement filings (or similar filings in other applicable jurisdictions) regarding operating leases entered into by CME and its Restricted Subsidiaries in the ordinary course of business;

(14)         Liens existing on the Issue Date;

(15)         Liens on property or shares of stock of a Person at the time such Person becomes a Restricted Subsidiary; provided, however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such other Person becoming a Restricted Subsidiary; provided further, however, that any such Lien may not extend to any other property owned by CME or any Restricted Subsidiary;

(16)         Liens on property at the time CME or a Restricted Subsidiary acquired the property, including any acquisition by means of a merger, amalgamation or consolidation with or into CME or any Restricted Subsidiary; provided, however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such acquisition; provided further, however, that such Liens may not extend to any other property owned by CME or any Restricted Subsidiary;

(17)         Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing to CME or another Restricted Subsidiary;

(18)         Liens securing the Notes or any Guarantees;

(19)         Liens securing Refinancing Indebtedness incurred to refinance Indebtedness that was previously so secured, provided that any such Lien is limited to all or part of the same property or assets (plus improvements, replacement accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien arose, could secure) the Indebtedness being refinanced or is in respect of property that is the security for a Permitted Lien hereunder;

(20)         any interest or title of a lessor under any Capitalized Lease Obligation or operating lease; and

(21)         Liens securing Indebtedness Incurred in respect of any customary cash management, cash pooling or netting or setting off arrangements (notional or otherwise) entered into in the ordinary course of business.

“Permitted Transaction” means the relocation or movement, within the CET Group, of assets of any member of the CET Group that form part of the CET Collateral in an aggregate annual amount not to exceed € 10.0 million or its equivalent per annum.

“Person” means any individual, corporation, partnership, joint venture, association, company, trust, unincorporated organization, limited liability company, government or any agency or political subdivision thereof or any other entity.

“Preferred Stock,” as applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however designated) which is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such corporation.

 

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“Private Placement Legend” means the legend set forth in Section 2.7(g).

“Public Equity Offering” means a public offering for cash by the Issuer of its common stock, or options, warrants or rights with respect to its common stock subsequent to the 2005 Issue Date (A) for Net Cash Proceeds of at least $50 million and (B) where such common stock is listed or quoted on a recognized securities exchange or inter-dealer quotation system.

“Qualified Institutional Buyer” shall have the meaning specified in Rule 144A under the U.S. Securities Act.

“Rating Agencies” means Moody’s or S&P and if Moody’s or S&P shall not make a rating of the Notes publicly available, an internationally recognized securities rating agency or agencies, as the case may be, which shall be substituted for Moody’s or S&P or each of them as the case may be.

“Rating Date” means the date which is the day prior to the initial public announcement by CME and/or the Issuer or the proposed acquirer that (i) the acquirer has entered into one or more binding agreements with CME, the Issuer and/or shareholders of CME and/or the Issuer that would give rise to a Change of Control or (ii) the proposed acquirer has commenced an offer to acquire outstanding Voting Stock of CME and/or the Issuer.

“Rating Decline” shall be deemed to occur if on the 60th day following the occurrence of a Change of Control the rating of the Notes by either Rating Agency shall have been (i) withdrawn or (ii) downgraded, by one or more degradations, from the ratings in effect on the Rating Date.

“Record Date” means the Record Dates specified in the Notes.

“Redemption Date” when used with respect to any Note to be redeemed, means the date fixed for such redemption pursuant to this Indenture and Paragraph 7 of any Note.

“Redemption Price” when used with respect to any Note to be redeemed, means the price fixed for such redemption pursuant to this Indenture and Paragraphs 7 and 8 of any Note.

“Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace, exchange, renew, repay or extend (including pursuant to any defeasance or discharge mechanism) (collectively, “refinance,” “refinances,” and “refinanced” shall have a correlative meaning) any Indebtedness existing on the Issue Date or Incurred in compliance with this Indenture (including Indebtedness of CME that refinances Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that refinances Indebtedness of another Restricted Subsidiary or of CME) including Indebtedness that refinances Refinancing Indebtedness; provided, however, that:

(1)           (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated Maturity of the Indebtedness being refinanced is later than the Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity at least 91 days later than the Stated Maturity of the Notes;

 

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(2)           the Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the Average Life of the Indebtedness being refinanced;

(3)           such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or less than the sum of the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding of Indebtedness being refinanced (plus, without duplication, any additional Indebtedness Incurred to pay interest or premiums required by the instruments governing such existing Indebtedness and fees incurred in connection therewith);

(4)            if the Indebtedness being refinanced is subordinated in right of payment to the Notes, such Refinancing Indebtedness is subordinated in right of payment to the Notes on terms at least as favorable to the holders of Notes as those contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;

(5)           “Refinancing Indebtedness” shall not include Indebtedness of a Restricted Subsidiary that is not a Guarantor incurred to refinance Indebtedness of a Guarantor; and

(6)           “Refinancing Indebtedness” shall not include Indebtedness of a CET Guarantor or a member of the CET Group incurred to refinance Indebtedness of CME or a Restricted Subsidiary of CME that is not a member of the CET Group or a CET Guarantor, except to the extent that the Indebtedness being refinanced was guaranteed by such CET Guarantor or such member of the CET Group.

“Registrar” shall have the meaning set forth in Section 2.3 of this Indenture.

“Regulation S” means Regulation S (including any successor regulation thereto) under the U.S. Securities Act, as it may be amended from time to time.

“Relevant Taxing Jurisdiction” shall have the meaning set forth in Paragraph 2 of any Note.

“Restricted Investment” means any Investment other than a Permitted Investment.

“Restricted Payment” shall have the meaning set forth in Section 4.4.

“Restricted Period” shall have the meaning set forth in Section 2.7(c).

“Restricted Subsidiary” means any Subsidiary of CME other than an Unrestricted Subsidiary.

“Revolving Credit Facility” means the facility provided pursuant to an agreement dated on or about the Issue Date among the Issuer, as borrower, BNP Paribas, S.A., J.P. Morgan plc, Citigroup Global Markets Limited, ING Bank N.V. and Česká spořitelna, a.s., as mandated lead arrangers, BNP Paribas S.A., JPMorgan Chase Bank N.A., Citibank Europe plc, ING Bank N.V. and Česká spořitelna, a.s., as original lenders, BNP Paribas S.A., as agent, BNP Paribas Trust Corporation UK Limited, as security agent, and CME, CME NV, CME BV, CME Investments, CME Slovak  and Markiza, as the original guarantors, as such facility may be amended, restated, modified, renewed, refunded, replaced, restructured or refinanced in whole or in part from time to time.

 

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“Rule 144” means Rule 144 (including any successor regulation thereto) under the U.S. Securities Act, as it may be amended from time to time.

“Rule 144A” means Rule 144A (including any successor regulation thereto) under the U.S. Securities Act, as it may be amended from time to time.

“Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter acquired whereby CME or a Restricted Subsidiary transfers such property to a Person and CME or a Restricted Subsidiary leases it from such Person.

“Secured Party” means the Security Agent, the Trustee and the holders of the Notes.

“Security Agent” means BNP Paribas Trust Corporation UK Limited, as security agent under the CET Group Intercreditor Agreement and any successor thereto.

“Security Documents” means the CET Security Documents and the CME Security Documents.

“Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of CME within the meaning of Rule 1-02 under Regulation S-X promulgated by the Commission as of the Issue Date.

“S&P” means Standard and Poor’s Ratings Group and its successors.

“Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision, but shall not include any contingent obligations to repay, redeem or repurchase any such principal prior to the date originally scheduled for the payment thereof.

“Subordinated Obligations” means any Indebtedness of CME or any Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter Incurred) which is subordinate or junior in right of payment to obligations under this Indenture pursuant to a written agreement.

“Subsidiary” of any Person means (i) any corporation, association, partnership, joint venture, limited liability company or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership and joint venture interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3) one or more Subsidiaries of such Person or (ii) any corporation, association, partnership, joint venture, limited liability company or other business entity which is consolidated with CME and its Subsidiaries in accordance with GAAP. Unless otherwise specified herein, each reference to a Subsidiary will refer to a Subsidiary of CME.

“Subsidiary Guarantors” means any Guarantor from time to time that is not CME.

“Successor Company” shall have the meaning set forth in Section 4.18(a)(1).

 

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 “Technical Amendment” means any amendment to a Security Document in respect of the Notes pursuant to Section 9.1, provided that in relation to any such amendment either (i) Section 4.24 has been complied with or (ii) CME delivers to the Trustee an Officers’ Certificate, in form and substance reasonably satisfactory to the Trustee, confirming the solvency of the Person granting such security interest, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement, and an Opinion of Counsel (subject to any necessary qualifications relating to hardening periods and other qualifications customary for this type of Opinion of Counsel), in form and substance reasonably satisfactory to the Trustee, confirming that, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement (followed by an immediate retaking of a lien of at least equivalent ranking (after giving effect to the deletion or removal of the replaced lien) over the same assets), the Lien or Liens created under the Security so amended are valid Liens.

“Taxes” shall have the meaning set forth in Paragraph 2 of any Note.

“Transfer Agent” means any Person authorized by the Issuer to effectuate the exchange or transfer of any Note on behalf of the Issuer hereunder.

“Trust Officer” means any officer within Citibank, N.A., London Branch (or any successor group of the Trustee), including any director, managing director, vice president, assistant vice president, corporate trust officer, assistant corporate trust officer, secretary, assistant secretary, treasurer, assistant treasurer, associate or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the persons who at that time shall be such officers having direct responsibility for the administration of this Indenture, and also means, with respect to a particular corporate trust matter, any other officer to whom such trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

“Trustee” means the party named as such in this Indenture until a successor replaces it in accordance with the provisions of this Indenture and thereafter means such successor.

“Unrestricted Subsidiary” means:

(1)           as of the Issue Date each of Top Tone Media S.A., Zopal S.A., PRO BG MEDIA EOOD, LG Consult EOOD, Ring TV EAD and CME Development Financing B.V., provided, however, that each of the foregoing shall only be considered to be Unrestricted Subsidiaries on and after the Issue Date to the extent they continue to meet all requirements for being designated as Unrestricted Subsidiaries as set forth below in this definition;

(2)           any Subsidiary of CME that at the time of determination shall be designated an Unrestricted Subsidiary by the Board of Directors in the manner provided below; and

(3)           any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors may designate any Subsidiary of CME (including any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger, amalgamation or consolidation or Investment therein) to be an Unrestricted Subsidiary only if:

(1)           such Subsidiary or any of its Subsidiaries does not own any Capital Stock or Indebtedness of or have any Investment in, or own or hold any Lien on any property of, any other Subsidiary of CME which is not a Subsidiary of the Subsidiary to be so designated or otherwise an Unrestricted Subsidiary;

 

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(2)           all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of designation, and will at all times thereafter, consist of Non-Recourse Debt;

(3)           such designation and the Investment of CME in such Subsidiary complies with Section 4.4 of this Indenture;

(4)           such Subsidiary, either alone or in the aggregate with all other Unrestricted Subsidiaries, does not operate, directly or indirectly, all or substantially all of the business of CME and its Subsidiaries;

(5)           such Subsidiary is a Person with respect to which neither CME nor any of its Restricted Subsidiaries has any direct or indirect obligation:

(a)           to subscribe for additional Capital Stock of such Person; or

(b)           to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results;

(6)           on the date such Subsidiary is designated an Unrestricted Subsidiary, such Subsidiary is not a party to any agreement, contract, arrangement or understanding with CME or any Restricted Subsidiary with terms substantially less favorable to CME than those that might have been obtained from Persons who are not Affiliates of CME.

Any such designation by the Board of Directors shall be evidenced to the Trustee by filing with the Trustee a resolution of the Board of Directors giving effect to such designation and an Officers’ Certificate certifying that such designation complies with the foregoing conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary shall be deemed to be Incurred as of such date.

The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof and CME could incur at least €1.00 of additional Indebtedness under Section 4.3(a) hereof on a pro forma basis taking into account such designation.

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

“U.S. Global Note” shall have the meaning set forth in Section 2.1.

“U.S. Notes” shall have the meaning set forth in Section 2.1.

“U.S. Securities Act” means the United States Securities Act of 1933, as amended.

“Voting Stock” of a corporation means all classes of Capital Stock of such corporation then outstanding and normally entitled to vote in the election of members of the management board, directors or persons acting in a similar capacity on similar corporate bodies.

 

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SECTION 1.2   Rules of Construction.  Unless the context otherwise requires:

(a)           a term has the meaning assigned to it;

(b)           an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

(c)           “or” is not exclusive;

(d)           words in the singular include the plural, and words in the plural include the singular;

(e)           provisions apply to successive events and transactions; and

(f)            “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

(g)           “guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person:

(1)           to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise); or

(2)           entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term “guarantee” will not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has a corresponding meaning.

ARTICLE II

THE NOTES

SECTION 2.1   Form and Dating.  The Notes and the notation relating to the Trustee’s certificate of authentication thereof, shall be substantially in the form of Exhibits A or B, as applicable.  The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage.  The Issuer shall approve the form of the Notes and any notation, legend or endorsement on them not inconsistent with the terms of this Indenture.  Each Note shall be dated the date of its issuance and shall show the date of its authentication.

The terms and provisions contained in the Notes, annexed hereto as Exhibits A and B, shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Issuer, the Guarantors, the Trustee and the Paying Agent, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.  The Notes will initially be represented by the Global Notes.

As long as the Notes are in global form, the Paying Agent (in lieu of the Trustee) shall be responsible for:

 

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(i)

	
effecting payments due on the Global Notes (following receipt of payment thereof from Issuer); and

	
  

	
(ii)

	
arranging on behalf of and at the expense of the Issuer for notices to be communicated to holders of the Notes in accordance with the terms of this Indenture.

Each reference in this Indenture to the performance of duties set forth in clauses (i) and (ii) above by the Trustee includes performance of such duties by the Paying Agent.

Notes offered and sold in their initial distribution in reliance on Regulation S shall be initially issued as one or more global notes, in registered global form without interest coupons, substantially in the form of Exhibit A hereto, with such applicable legends as are provided in Exhibits A hereto, except as otherwise permitted herein.  Such Global Notes shall be referred to collectively herein as the “International Global Notes.”  The aggregate principal amount of the International Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee (following receipt by the Trustee of all information required hereunder), as hereinafter provided (or by the issue of a further International Global Note), in connection with a corresponding decrease or increase in the aggregate principal amount of the U.S. Global Note (as defined below) or in consequence of the issue of Definitive Notes or additional International Notes, as hereinafter provided.  The International Global Note and all other Notes that are not U.S. Notes shall collectively be referred to herein as the “International Notes.”

Notes offered and sold in their initial distribution in reliance on Rule 144A shall be initially issued as one or more global notes in registered, global form without interest coupons, substantially in the form of Exhibit A hereto, with such applicable legends as are provided in Exhibit A, except as otherwise permitted herein.  Such Global Notes shall be referred to collectively herein as the “U.S. Global Notes.”  The aggregate principal amount of the U.S. Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee (following receipt by the Trustee of all information required hereunder), as hereinafter provided (or by the issue of further U.S. Global Notes), in connection with a corresponding decrease or increase in the aggregate principal amount of the relevant International Global Notes or in consequence of the issue of Definitive Notes or additional U.S. Notes, as hereinafter provided.  The U.S. Global Notes and all other Notes, if any, evidencing the debt, or any portion of the debt, initially evidenced by such U.S. Global Note, shall collectively be referred to herein as the “U.S. Notes.”

SECTION 2.2   Execution and Authentication.  Two Officers shall sign the Notes for the Issuer by manual or facsimile signature.

If an Officer whose signature is on a Note was an Officer at the time of such execution but no longer holds that office or position at the time the Trustee authenticates the Notes, the Notes shall be valid nevertheless.  The Trustee shall be entitled to rely on such signature as authentic and shall be under no obligation to make any investigation in relation thereto.

A Note shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Note.  The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

 

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Except as otherwise provided herein, the aggregate principal amount of Notes that may be outstanding at any time under this Indenture is not limited in amount.  The Trustee shall authenticate such Notes which shall consist of (i) Original Notes for original issue on the Issue Date in an aggregate principal amount not to exceed €170,000,000 and (ii) Additional Notes from time to time for issuance after the Issue Date to the extent otherwise permitted hereunder (including, without limitation, under Section 4.3 hereof), in each case upon receipt by the Trustee of a Company Order in the form of an Officers’ Certificate.  Additional Notes will be treated as the same series of Notes as the Original Notes for all purposes under this Indenture, including, without limitation, for purposes of waivers, amendments, redemptions and offers to purchase.  Such Company Order shall specify the aggregate principal amount of Notes to be authenticated, the date on which the Notes are to be authenticated, the issue price and the date from which interest on such Notes shall accrue, whether the Notes are to be Original Notes or Additional Notes, whether the Notes are to be issued as Definitive Notes or Global Notes and whether or not the Notes shall bear the Private Placement Legend, or such other information as the Trustee may reasonably request.  In addition, such Company Order shall include (a) a statement that the Persons signing the Company Order have (i) read and understood the provisions of this Indenture relevant to the statements in the Company Order and (ii) made such examination or investigation as is necessary to enable them to make such statements and (b) a brief statement as to the nature and scope of the examination or investigation on which the statements set forth in the Company Order are based.  In authenticating the Notes and accepting the responsibilities under this Indenture in relation to the Notes, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel in a form reasonably satisfactory to the Trustee stating that the form and terms thereof have been established in conformity with the provisions of this Indenture, do not give rise to a Default and that the issuance of such Notes has been duly authorized by the Issuer and, if applicable, the Guarantors.  Upon receipt of a Company Order, the Trustee shall authenticate Notes in substitution of Notes originally issued to reflect any name change of the Issuer.

The Trustee may appoint an authenticating agent (“Authenticating Agent”) reasonably acceptable to the Issuer to authenticate Notes.  Unless otherwise provided in the appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such Authenticating Agent.  An Authenticating Agent has the same rights as an Agent to deal with the Issuer and Affiliates of the Issuer.

The Notes shall be issuable only in denominations of €50,000 and any integral multiple of €1,000 in excess thereof.

SECTION 2.3   Registrar and Paying Agent.  (a) The Issuer shall maintain an office or agency in Germany, where Global Notes may be presented for registration of transfer or for exchange (“Registrar”).  The Issuer shall maintain an office or agency in London, England, where (i) Global Notes may be presented or surrendered for payment (“Paying Agent”) and (ii) notices and demands in respect of such Global Notes and this Indenture may be served.  In the event that Definitive Notes are issued, (x) Definitive Notes may be presented or surrendered for registration of transfer or for exchange, (y) Definitive Notes may be presented or surrendered for payment and (z) notices and demands in respect of the Definitive Notes and this Indenture may be served at an office of the Registrar or the Paying Agent, as applicable, in Frankfurt, Germany or London, England, respectively. The Registrar shall keep a register of the Notes and of their transfer and exchange.  The Issuer, upon notice to the Trustee, may have one or more co-Registrars and one or more additional Paying Agents reasonably acceptable to the Trustee.  The term “Registrar” includes any co-Registrar, and the term “Paying Agent” includes any additional Paying Agent.  The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar for the Notes.  The Issuer initially appoints Citibank, N.A., London Branch, as Transfer Agent and Paying Agent until such time as Citibank, N.A., London Branch has resigned and a successor has been appointed.  In addition, the Issuer appoints Citigroup Global Markets Deutschland AG, as Registrar.  In the event that a Paying Agent or Transfer Agent is replaced, the Issuer shall provide notice thereof, published, if and so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such stock exchange so require, in a daily newspaper with general circulation in The Grand Duchy of Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange at www.bourse.lu, and, in the case of Definitive Notes, in addition to such publication, mailed to each holder’s registered address, as it appears on the register of the Notes held by the Registrar, with a copy to the Trustee.  The Issuer may change any Registrar or Paying Agent without prior notice to the holders of the Notes.  Payment of principal will be made upon the surrender of Definitive Notes at the office of any Paying Agent.  In the case of a transfer of a Definitive Note in part, upon surrender of the Definitive Note to be transferred, a Definitive Note shall be issued to the transferee in respect of the principal amount transferred and a Definitive Note shall be issued to the transferor in respect of the balance of the principal amount of the transferred Definitive Note at the office of any Transfer Agent.

 

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Citibank, N.A., London Branch shall initially act as Paying Agent for the Notes.  The Issuer shall also undertake, to the extent possible, to maintain a Paying Agent in a European Union member state that will not be obliged to withhold or deduct tax pursuant to the European Union Directive 2003/48/EC regarding the taxation of savings income (the “Directive”).  The Issuer may change the Paying Agent or Registrar for the Notes without prior notice to the holders of the Notes, and the Issuer, or any of its subsidiaries, may act as Paying Agent or Registrar for the Notes.  In the event that a Paying Agent or the Registrar is replaced, the Issuer shall provide notice thereof in accordance with the procedures described below under Section 12.1.

Claims against the Issuer for payment of principal, interest and Additional Amounts, if any, on the Notes will become void unless presentment for payment is made (where so required herein) within, in the case of principal and Additional Amounts, if any, a period of ten years or, in the case of interest, a period of five years, in each case from the applicable original date of payment therefor.

The obligations of the Agents are several and not joint.

SECTION 2.4   Paying Agent to Hold Assets.  Each Paying Agent shall hold to the order of the holders of the Notes or the Trustee all assets received by the Paying Agent (whether such assets have been paid to it by the Issuer or any Guarantor) for the payment of principal, premium, if any, or interest on, the Notes, and shall notify the Trustee of any Default by the Issuer or any Guarantor in making any such payment.  The Issuer at any time may require a Paying Agent to distribute all assets held by it to the Trustee and account for any assets disbursed and the Trustee may at any time during the continuance of any payment default, upon written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to account for any assets distributed.  Upon distribution to the Trustee of all assets that shall have been delivered by the Issuer to the Paying Agent pursuant to this Section 2.4, the Paying Agent shall have no further liability for such assets.  If the Issuer or any of its Subsidiaries acts as Paying Agent, it shall segregate the assets held by it as Paying Agent and hold it as a separate trust fund.

 

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SECTION 2.5   List of Holders of Notes.  In the event that Definitive Notes are issued, the Registrar shall preserve, in as current a form as is reasonably practicable, the most recent list available to it of the names and addresses of holders of the Notes, together with the principal amount of Notes held by each such holder of the Notes and the aggregate principal amount of debt obligations outstanding.  If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least two Business Days before each Record Date and at such other times as the Trustee may request in writing, a list as of such date, and in such form as the Trustee may reasonably require of the names and addresses of holders of the Notes, which list may be conclusively relied upon by the Trustee.

SECTION 2.6   Book-Entry Provisions for Global Notes.  (a)  The Global Notes initially shall (i) be deposited with and registered in the name of a nominee for the Common Depositary of the Clearing Agencies and (ii) bear legends as set forth in Section 2.7(g) hereof.

(b)           Notwithstanding any other provisions of this Indenture, a Global Note may not be transferred as a whole except by a nominee for the Common Depositary to a successor nominee for the Common Depositary.  Interests of beneficial owners in the Global Notes may be transferred or exchanged for Definitive Notes in accordance with the rules and procedures of the Clearing Agency and the provisions of Section 2.7 of this Indenture.  All Global Notes shall be exchanged by the Issuer (with authentication by the Trustee) for one or more Definitive Notes if (a) any Clearing Agency (i) has notified the Issuer that it is unwilling or unable to continue as a clearing agency and (ii) a successor to the Clearing Agency is not appointed by the Issuer within 90 days of such notification, (b) any Clearing Agency so requests following an Event of Default hereunder and which Event of Default is continuing or (c) in whole (but not in part) at any time if the Issuer in its sole discretion so determines and notifies the Trustee in writing that it elects to issue Definitive Notes.  If an Event of Default occurs and is continuing, the Issuer shall, at the written request delivered through a Clearing Agency of the holders of Notes thereof or of the holder of an interest therein, exchange all or part of a Global Note for one or more Definitive Notes (with authentication by the Trustee); provided, however, that the principal amount at maturity of such Definitive Notes and such Global Note after such exchange shall be €50,000 and any integral multiple of €1,000 in excess thereof.  Whenever all of a Global Note is exchanged for one or more Definitive Notes, it shall be surrendered by the holder thereof to the Trustee for cancellation.  Whenever a part of a Global Note is exchanged for one or more Definitive Notes, the Global Note shall be surrendered by the holder thereof to the Trustee, who shall cause an adjustment to be made to Schedule A of such Global Note such that the principal amount of such Global Note will be equal to the portion of such Global Note not exchanged, and shall thereafter return such Global Note to such holder.  A Global Note may not be exchanged for a Definitive Note other than as provided in this Section 2.6(b).

(c)            In connection with the transfer of Global Notes as an entirety to beneficial owners pursuant to subsection (b) of this Section 2.6, the Global Notes shall be deemed to be surrendered to the Trustee for cancellation, and the Issuer shall execute, and the Trustee shall, upon receipt of a Company Order in the form of an Officers’ Certificate, authenticate and make available for delivery, to each beneficial owner in exchange for its beneficial interest in the Global Notes, an equal aggregate principal amount of Definitive Notes of authorized denominations.

(d)           Any Definitive Note delivered in exchange for an interest in a Global Note pursuant to Subsection (b) of this Section 2.6 shall, except as otherwise provided by Section 2.8, bear the Private Placement Legend.

 

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SECTION 2.7   Registration of Transfer and Exchange.  (a)  Notwithstanding any provision to the contrary herein, so long as a Note remains outstanding, transfers and exchange of beneficial interests in Global Notes or transfers and exchange of Definitive Notes, in whole or in part, shall be made only in accordance with this Section 2.7.

(b)           If a holder of a beneficial interest in a U.S. Global Note wishes at any time to exchange its interest in such U.S. Global Note for an interest in the International Global Note of the same series, or to transfer its interest in such U.S. Global Note to a Person who wishes to take delivery thereof in the form of an interest in such International Global Note, such holder may, subject to the rules and procedures of the Clearing Agency, to the extent applicable, and to the requirements set forth in this Subsection (b), exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in such International Global Note.  Such exchange or transfer shall only be made upon receipt by any Transfer Agent of (1) written instructions given in accordance with the procedures of the Clearing Agency, to the extent applicable, from or on behalf of a holder of a beneficial interest in the U.S. Global Note, directing the Trustee to credit or cause to be credited a beneficial interest in the International Global Note of the same series in an amount equal to the beneficial interest in the U.S. Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Clearing Agency, to the extent applicable, containing information regarding the account to be credited with such increase and the name of such account, and (3) a certificate in the form of Exhibit B given by the holder of such beneficial interest stating that the exchange or transfer of such interest has been made pursuant to and in accordance with Rule 903 or Rule 904 of Regulation S or Rule 144 under the U.S. Securities Act. Upon such receipt, the Transfer Agent shall promptly deliver appropriate instructions to the Clearing Agency to reduce or reflect a reduction of the relevant U.S. Global Note by the aggregate principal amount of the beneficial interest in such U.S. Global Note to be so exchanged or transferred from the relevant participant, and the Transfer Agent shall promptly deliver appropriate instructions to the Clearing Agency concurrently with such reduction to increase or reflect on its records an increase of the principal amount of such International Global Note by the aggregate principal amount of the beneficial interest in such U.S. Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in such International Global Note equal to the reduction in the principal amount of such U.S. Global Note.

(c)           If a holder of a beneficial interest in an International Global Note wishes at any time to exchange its interest in such International Global Note for an interest in the U.S. Global Note, or to transfer its interest in such International Global Note of the same series to a Person who wishes to take delivery thereof in the form of an interest in such U.S. Global Note, such holder may, subject to the rules and procedures of the Clearing Agency, to the extent applicable, and to the requirements set forth in this Subsection (c), exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in such U.S. Global Note.  Such exchange or transfer shall only be made upon receipt by a Transfer Agent of (l) written instructions given in accordance with the procedures of the Clearing Agency, to the extent applicable, from or on behalf of a beneficial owner of an interest in the International Global Note directing the Transfer Agent to credit or cause to be credited a beneficial interest in the U.S. Global Note of the same series in an amount equal to the beneficial interest in the International Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Clearing Agency, to the extent applicable, containing information regarding the account to be credited with such increase and the name of such account, and (3) prior to or on the 40th day after the later of the commencement of the offering of the Notes and the relevant Issue Date (the “Restricted Period”), a certificate in the form of Exhibit C given by the holder of such beneficial interest and stating that the Person transferring such interest in such International Global Note reasonably believes that the Person acquiring such interest in such U.S. Global Note is a Qualified Institutional Buyer (as defined in Rule 144A) and is obtaining such beneficial interest in a trans­action meeting the require­ments of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction. Upon such receipt, the Trustee shall promptly deliver appropriate instructions to the Clearing Agency to reduce or reflect a reduction of the relevant International Global Note by the aggregate principal amount of the beneficial interest in such International Global Note to be exchanged or transferred, and the Trustee shall promptly deliver appropriate instructions to the Clearing Agency concurrently with such reduction, to increase or reflect an increase of the principal amount of such U.S. Global Note by the aggre­gate principal amount of the beneficial interest in such International Global Note to be so ex­changed or transferred, and credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in such U.S. Global Note equal to the reduction in the principal amount of such International Global Note.  After the expiration of the Restricted Period, the certification requirement set forth in clause (3) of the second sentence of this Section 2.7(c) will no longer apply to such transfers.

 

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(d)           Any beneficial interest in one of the Global Notes that is transferred to a Person who takes delivery in the form of an interest in one of the other Global Notes will, upon transfer, cease to be an interest in such Global Note and become an interest in one of the other Global Notes and, accordingly, will thereafter be subject to all transfer restrictions and other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest.

(e)           In the event that a Global Note is exchanged for Definitive Notes in registered form without interest coupons, pursuant to Section 2.6(b), or a Definitive Note in registered form without interest coupons is exchanged for another such Definitive Note in registered form without interest coupons, or a Definitive Note is exchanged for a beneficial interest in a Global Note, such Notes may be exchanged or transferred for one another only in accordance with such procedures as are substantially consistent with the provisions of Sections 2.7(b) and (c) above (including the certification requirements intended to ensure that such exchanges or transfers comply with Rule 144, Rule 144A or Regulation S, as the case may be) and as may be from time to time adopted by the Issuer and the Trustee.

(f)            Prior to the expiration of the Restricted Period, beneficial interests in the International Global Notes may only be exchanged or transferred in accordance with the certification requirements of Section 2.7(c).

(g)           Each Note issued under this Indenture shall, upon issuance, bear the legend set forth herein and such legend shall not be removed from such Note except as provided in the next sentence.  The legend required for one of the U.S. Notes may be removed from such U.S. Note if there is delivered to the Issuer and the Trustee such satisfactory evidence, which may include an opinion of independent counsel licensed to practice law in the State of New York, as may be reasonably required by the Issuer and the Trustee, that neither such legend nor the restrictions on transfer set forth therein are required to ensure that transfers of such Note will not violate the registration requirements of the U.S. Securities Act, and the Issuer and the Trustee consent to such removal.  Upon provision of such satisfactory evidence, the Trustee, at the written direction of the Issuer, shall authenticate and deliver in exchange for such Note, another Note or Notes having an equal aggregate principal amount that does not bear such legend.  If such a legend required for one of the U.S. Notes has been removed from such U.S. Note as provided above, no other Note issued in exchange for all or any part of such Note shall bear such legend, unless the Issuer has reasonable cause to believe that such other Note is a “restricted security” within the meaning of Rule 144 and instructs the Trustee to cause a legend to appear thereon.

 

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The Notes shall bear the following legend (the “Private Placement Legend”) on the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE ‘‘U.S. SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR  UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE ‘‘RESALE RESTRICTION TERMINATION DATE’’) THAT IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR] [IN THE CASE OR REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE U.S. SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A ‘‘QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE U.S. SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE U.S. SECURITIES ACT, (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE U.S. SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES EQUAL TO AN EQUIVALENT AMOUNT OF US$ 250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE U.S. SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

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(h)           By its acceptance of any Note bearing the Private Placement Legend, each holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as provided in this Indenture.

Neither the Trustee nor any Paying Agent, Transfer Agent or Registrar shall have any obligation or duty to, and shall not be liable for any failure to, monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among members of, or participants in, a Clearing Agency (“Agent Members”) or beneficial owners of interests in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

The Trustee shall retain copies of all letters, notices and other written communications received pursuant to Section 2.6 or this Section 2.7.  The Issuer shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the Trustee.

(i)            Definitive Notes shall be transferable only upon the surrender of a Definitive Note for registration of transfer.  When a Definitive Note is presented to the Registrar or a co-Registrar with a request to register a transfer, the Registrar shall register the transfer as requested if its requirements for such transfers are met.  When Definitive Notes are presented to the Registrar or a co-Registrar with a request to exchange them for an equal principal amount of Definitive Notes of other denominations, the Registrar shall make the exchange as requested if the same requirements are met.  When a Definitive Note is presented to the Registrar with a request to transfer in part, the transferor shall be entitled to receive without charge a definitive security representing the balance of such Definitive Note not transferred. To permit registration of transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Definitive Notes at the Registrar’s or co-Registrar’s request.

(j)            The Issuer shall not be required to make, and the Registrar need not register transfers or exchanges of, Definitive Notes (i) for a period of 15 calendar days prior to any date fixed for the redemption of the Notes, (ii) for a period of 15 calendar days immediately prior to the date fixed for selection of Notes to be redeemed in part, (iii) for a payment period of 15 calendar days prior to any Record Date, or (iv) that the relevant holder of such a Note has tendered (and not withdrawn) for repurchase in connection with a Change of Control Offer or Asset Disposition Offer.

(k)           Prior to the due presentation for registration of transfer of any Definitive Note, the Issuer, any Guarantor, the Trustee, any Paying Agent or any Transfer Agent, the Registrar or any co-Registrar and any agent of any of them may deem and treat the Person in whose name a Definitive Note is registered as the absolute owner of such Definitive Note for the purpose of receiving payment of principal, interest or Additional Amounts, if any, on such Definitive Note and for all other purposes whatsoever, whether or not such Definitive Note is overdue, and none of the Issuer, any Guarantor, the Trustee, any Paying Agent or any Transfer Agent, the Registrar and any agent of any of them or any co-Registrar shall be affected by notice to the contrary.

 

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(l)            A holder of Notes may transfer or exchange Notes in accordance with this Indenture.  The Issuer, the Registrar and the Trustee for the Notes may require a holder of a Note to furnish appropriate endorsements and transfer documents, and the Issuer may require such holder to pay any taxes and fees required by law or permitted by this Indenture.  The Issuer is not required to transfer or exchange any Note selected for redemption.  Also, the Issuer is not required to transfer or exchange any Note for a period of 15 days before a selection of Notes to be redeemed.  The registered holder of a Note will be treated as the owner of it for all purposes.  No service charge will be made to any holder of Notes for any registration or transfer or exchange of Notes, but the Issuer may require payment of a sum sufficient to cover any transfer tax or other similar government charge payable in connection therewith.

(m)          All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture will evidence the same debt and will be entitled to the same benefits under this Indenture as the corresponding Notes surrendered upon such transfer or exchange.

(n)           Holders of Notes (or holders of interests therein) and prospective purchasers designated by such holders of the Notes (or holders of interests therein) will have the right to obtain from the Issuer upon request by such holders of the Notes (or holders of interests therein) or prospective purchasers, during any period in which the Issuer is not subject to Section 13 or 15(d) of the U.S. Exchange Act, or is exempt from reporting pursuant to 12g3-2(b) under the U.S. Exchange Act, the information required by Subsection d(4)(i) of Rule 144A in connection with any transfer or proposed transfer of such Notes.

SECTION 2.8   Replacement Notes.  If a mutilated Definitive Note is surrendered to the Registrar, if a mutilated Global Note is surrendered to the Issuer or if the holder of a Note claims that such Note has been lost, destroyed or wrongfully taken, the Issuer shall issue and the Trustee shall authenticate a replacement Note in such form as the Note being replaced if the requirements of the Trustee, the Registrar, the Issuer and the Guarantors are met.  If required by the Trustee, the Registrar, the Issuer or any Guarantor, such holder must provide an indemnity bond or other indemnity, sufficient in the judgment of the Issuer, any Guarantor, the Registrar and the Trustee, to protect the Issuer, the Guarantors, the Trustee and the Registrar and any Agent from any loss which any of them may suffer when such Note is replaced.  The Issuer may charge such holder of the Notes for its reasonable, out-of-pocket expenses in replacing a Note, including reasonable fees and expenses of counsel.  Every replacement Note is an additional obligation of the Issuer.  If any mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and payable the Issuer may, in its discretion, instead of issuing a replacement Note, pay such Note.  The provisions of this Section 2.8 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement of mutilated, destroyed, lost, stolen or taken Notes.

SECTION 2.9   Outstanding Notes.  Notes outstanding at any time are all the Notes that have been authenticated by the Trustee except those canceled by it, those delivered to it for cancellation, those reductions in the Global Note effected in accordance with the provisions hereof and those described in this Section as not outstanding.  Subject to Section 2.10, a Note does not cease to be outstanding because the Issuer or any of its Affiliates holds the Note.

 

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If a Note is replaced pursuant to Section 2.8 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless the Trustee receives proof satisfactory to it, and upon which it shall be entitled to rely without liability, that the replaced Note is held by a bona fide purchaser.  A mutilated Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.8.

If the principal amount of any Note is considered paid under Section 4.1 hereof, it ceases to be outstanding and interest and Additional Amounts, if any, on it cease to accrue.

If on a Redemption Date or the Maturity Date the Paying Agent holds cash in euro sufficient to pay all of the principal, interest and Additional Amounts, if any, due on the Notes payable on that date, then on and after that date such Notes cease to be outstanding and interest and Additional Amounts, if any, on such Notes cease to accrue.

SECTION 2.10   Treasury Notes.  In determining whether the holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Issuer or its Subsidiaries shall be disregarded, except that, for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a Trust Officer actually knows are so owned shall be disregarded.

The Issuer shall notify the Trustee, in writing, when it or any of its Subsidiaries repurchases or otherwise acquires Notes of the aggregate principal amount of such Notes so repurchased or otherwise acquired.  The Trustee may require an Officers’ Certificate, which shall be promptly provided, listing Notes owned by the Issuer or any of its Subsidiaries.

SECTION 2.11   Temporary Notes.  In the event that Definitive Notes become issuable under this Indenture, until permanent Definitive Notes are ready for delivery, the Issuer may prepare and the Trustee shall authenticate temporary Definitive Notes upon receipt of a Company Order pursuant to Section 2.2.  The Company Order shall specify the amount of temporary Definitive Notes to be authenticated and the date on which the temporary Definitive Notes are to be authenticated.  Temporary Definitive Notes shall be substantially in the form of permanent Definitive Notes but may have variations that the Issuer considers appropriate for temporary Definitive Notes.  Without unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate, upon receipt of a Company Order pursuant to Section 2.2, permanent Definitive Notes in exchange for temporary Definitive Notes.

SECTION 2.12   Cancellation.  The Issuer at any time may deliver Notes to the Registrar for cancellation.  The Trustee and the Paying Agent shall promptly forward to the Trustee any Notes surrendered to them for transfer, exchange or payment.  The Registrar, or at the direction of the Registrar, the Paying Agent, and no one else, shall cancel and, at the written direction of the Issuer, shall dispose of (subject to the record retention requirements of the U.S. Exchange Act) all Notes surrendered for transfer, exchange, payment or cancellation. Upon completion of any disposal, the Registrar shall (at the Issuer’s expense) deliver a certificate of such disposal to the Issuer, unless the Issuer directs the Registrar in writing to deliver (at the Issuer’s expense) the cancelled Notes to the Issuer.  Subject to Section 2.7, the Issuer may not issue new Notes to replace Notes that it has paid or delivered to the Registrar for cancellation.  If the Issuer shall acquire any of the Notes, such acquisition shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the same are surrendered to the Registrar for cancellation pursuant to this Section 2.12.

 

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SECTION 2.13   Defaulted Interest.  If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted interest, plus (to the extent lawful) any interest payable on the defaulted interest, to the holder of such Note thereof on a subsequent special record date, which date shall be the fifteenth day next preceding the date fixed by the Issuer for the payment of defaulted interest.  The Issuer shall notify the Trustee and the Paying Agent in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment (a “Default Interest Payment Date”), and at the same time the Issuer shall deposit with the Trustee or the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such defaulted interest or shall make arrangements satisfactory to the Trustee or the Paying Agent for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such defaulted interest as in this Section 2.13; provided, however, that in no event shall the Issuer deposit monies proposed to be paid in respect of defaulted interest later than 12:00 p.m. London time on the Business Day prior to the proposed Default Interest Payment Date with respect to defaulted interest to be paid on the Note.  At least 15 days before the subsequent special record date, the Issuer shall mail to each holder of the Notes at its registered address, with a copy to the Trustee and the Paying Agent, a notice that states the subsequent special record date, the payment date and the amount of defaulted interest, and interest payable on such defaulted interest, if any, to be paid.

SECTION 2.14   ISIN and Common Codes.  The Issuer in issuing the Notes may use an “ISIN” or “Common Code” number, and if so, the Trustee shall use the ISIN and Common Codes in notices of redemption or exchange as a convenience to holders of the Notes; provided, however, that any such notice may state that no representation is made by the Trustee as to the correctness or accuracy of the ISIN and Common Codes printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed on the Notes.  The Issuer shall promptly notify the Trustee of any change in any ISIN or Common Codes.

SECTION 2.15   Deposit of Moneys.  Prior to 12:00 p.m. London time on the Business Day immediately preceding each interest payment date and the Maturity Date, the Issuer shall have deposited with the Trustee or its designated Paying Agent in immediately available funds money sufficient to make cash payments, if any, due on such interest payment date or Maturity Date, as the case may be, on all Notes then outstanding.  Such payments shall be made by the Issuer in a timely manner which permits the Paying Agent to remit payment to the holders of the Notes on such interest payment date or Maturity Date, as the case may be.  The Issuer shall, prior to 12:00 p.m. London time on the second Business Day prior to the date on which the Paying Agent receives payment, procure that the bank effecting payment confirms by SWIFT message to the Trustee that an irrevocable payment instruction has been given.

SECTION 2.16   Certain Matters Relating to Global Notes.  Agent Members shall have no rights under this Indenture or any of the Global Notes with respect to any Global Note held on their behalf by the Clearing Agency, the Common Depositary or its nominee, and the Clearing Agency, the Common Depositary or its nominee may be treated by the Issuer, any Guarantor, the Trustee and any agent of the Issuer, any Guarantor or the Trustee as the absolute owner of the Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Issuer, any Guarantor, the Trustee or any agent of the Issuer, any Guarantor or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Clearing Agency or its nominee or impair, as between the Clearing Agency and its Agent Members, the operation of customary practices governing the exercise of the rights of a holder of any Note.

 

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The holder of interest in any Global Note may grant proxies and otherwise authorize any person, including Euroclear and Clearstream and their Agent Members and persons that may hold interests through Agent Members, to take any action which a holder of such interest in a Global Note is entitled to take under this Indenture or the Notes.

ARTICLE III

REDEMPTION

SECTION 3.1   Optional Redemption.  The Notes may be redeemed, as a whole or from time to time in part, upon the terms and at the redemption prices set forth in each of the Notes.  Any redemption pursuant to this Section 3.1 shall be made pursuant to the provisions of this Article III.

SECTION 3.2   Notices to Trustee.  If the Issuer elects to redeem Notes pursuant to Paragraphs 7 or 8 of such Notes, it shall notify the Trustee and the Paying Agent in writing of the Redemption Date, the amount of any premium and the principal amount of Notes to be redeemed at least 30 days but not more than 60 days before the Redemption Date (or such shorter period as the Trustee in its sole discretion shall determine).  The Issuer shall give notice of redemption as required under the relevant paragraph of the Notes pursuant to which such Notes are being redeemed.

SECTION 3.3   Selection of Notes to Be Redeemed.  If fewer than all of the Notes are to be redeemed at any time, selection of such Notes for redemption will be made by the Trustee in compliance with the requirements of the principal securities exchange, if any, on which such Notes are listed, or if the Notes are not so listed or such exchange prescribes no method of selection, on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem fair and appropriate (and in such manner as complies with applicable legal and exchange requirements); provided, however, that no Note of €50,000 in aggregate principal amount or less shall be redeemed in part.  In the event of partial redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided herein, not less than 15 nor more than 60 days prior to the Redemption Date by the Trustee from the outstanding Notes not previously called for redemption.  The Trustee assumes no liability in relation to selections made by it pursuant to this Section 3.3.

SECTION 3.4   Notice of Redemption.  Other than as provided in Section 3.4(b) below, at least 30 days but not more than 60 days before a Redemption Date so long as the Notes are in global form, the Issuer (a) shall notify the Trustee, the Registrar and the Paying Agent and (b) publish a notice of redemption in accordance with the provisions of Article 12.1 hereof, or in the case of Definitive Notes, in addition to such publication, mail such notice to each holder of the Notes by first-class mail, postage prepaid, with a copy to the Trustee, at such holder’s address as it appears on the registration books of the Registrar. At the Issuer’s request made at least 30 days before the Redemption Date (or such shorter period as the Trustee in its sole discretion shall determine), the Trustee shall give the notice of redemption in the Issuer’s name and at the Issuer’s expense; provided, however, that the Issuer shall deliver to the Trustee (in advance) an Officers’ Certificate requesting that the Trustee give such notice and setting forth in full the information to be stated in such notice as provided in the following items.

 

41

 

Each notice of redemption shall identify the Notes to be redeemed and shall state:

(a) the Redemption Date;

(b) the Redemption Prices and the amount of accrued and unpaid interest, if any, Additional Amounts, if any, to be paid (subject to the right of holders of record of Definitive Notes on the relevant Record Date to receive interest and Additional Amounts, if any, due on the relevant interest payment date);

(c) the name and address of the Paying Agents;

(d) that Notes called for redemption must be surrendered to a Paying Agent to collect the Redemption Price plus accrued and unpaid interest, if any, and Additional Amounts, if any;

(e) that, unless the Issuer defaults in making the redemption payment, then interest and Additional Amounts, if any, on Notes called for redemption cease to accrue on and after the Redemption Date, and the only remaining right of the holders of such Notes is to receive payment of the Redemption Price upon surrender to the Paying Agent of the Notes redeemed;

(f) (i) if any Global Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the Redemption Date, interest and Additional Amounts, if any, shall cease to accrue on the portion called for redemption, and upon surrender of such Global Note, the Global Note with a notation on Schedule A thereof adjusting the principal amount thereof to be equal to the unredeemed portion, will be returned and (ii) if any Definitive Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed, and that, after the Redemption Date, upon surrender of such Definitive Note, a new Definitive Note or Notes in aggregate principal amount equal to the unredeemed portion thereof will be issued in the name of the holder thereof, upon cancellation of the original Note;

(g) if fewer than all the Notes are to be redeemed, the identification of the particular Notes (or portion thereof) to be redeemed, as well as the aggregate principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after such partial redemption;

(h) the paragraph of the terms of the Notes pursuant to which the Notes are to be redeemed; and

(i) the ISIN or Common Code number, and that no representation is made as to the correctness or accuracy of the ISIN or Common Code, if any, listed in such notice or printed on the Notes.

 

Prior to the giving of any notice of redemption pursuant to Paragraph 8 of the Notes, the Issuer shall deliver to the Trustee (a) an Officers’ Certificate of the Issuer stating that it cannot avoid its obligation to pay Additional Amounts by taking commercially reasonable measures available to it and (b) an opinion of an independent tax advisor of nationally recognized standing reasonably satisfactory to the Trustee to the effect that the Issuer or any Guarantor has or will become obligated to pay such Additional Amounts as a result of a Change in Tax Law.

 

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SECTION 3.5   Effect of Notice of Redemption.  Once notice of redemption is given in accordance with Section 3.4, Notes called for redemption become due and payable on the Redemption Date and at the Redemption Price plus accrued and unpaid interest, if any, and Additional Amounts, if any.  Upon surrender to the Trustee or Paying Agent, such Notes called for redemption shall be paid at the Redemption Price (which shall include accrued and unpaid interest thereon, if any, and Additional Amounts, if any, to the Redemption Date), but (in the case of Definitive Notes) installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable to holders of record at the close of business on the relevant Record Dates.

SECTION 3.6   Deposit of Redemption Price.  Prior to 12:00 p.m. London time on the Business Day immediately preceding the Redemption Date, the Issuer shall deposit with the Trustee or its designated Paying Agent cash in euro sufficient to pay the Redemption Price plus accrued and unpaid interest, if any, and Additional Amounts, if any, of all Notes to be redeemed on that date.  The Paying Agent shall promptly return to the Issuer any cash in euro so deposited which is not required for that purpose upon the written request of the Issuer.  The Issuer shall, prior to 12:00 p.m. London time on the second Business Day prior to the date on which the Paying Agent receives payment, procure that the bank effecting payment confirms by SWIFT message to the Trustee that an irrevocable payment instruction has been given.

If the Issuer complies with the preceding paragraph, then, unless the Issuer defaults in the payment of such Redemption Price plus accrued and unpaid interest, if any, and Additional Amounts, if any, then interest on the Notes to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such Notes are presented for payment.  With respect to Definitive Notes, if a Definitive Note is redeemed on or after an interest Record Date but on or prior to the related interest payment date, then any accrued and unpaid interest, and Additional Amounts, if any, shall be paid to the Person in whose name such Note was registered at the close of business on such Record Date.  If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the Issuer to comply with the preceding paragraph, interest and Additional Amounts, if any, shall be paid on the unpaid principal, from the Redemption Date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.1.

SECTION 3.7   Notes Redeemed in Part.  Upon surrender and cancellation of a Definitive Note that is redeemed in part, the Issuer shall execute and upon receipt of a Company Order the Trustee shall authenticate for the holder of the Notes (at the Issuer’s expense) a new Definitive Note equal in principal amount to the unredeemed portion of the Definitive Note surrendered and canceled; provided, however, that each such Definitive Note shall be in a principal amount at maturity of €50,000 and any integral multiple of €1,000 in excess thereof.  Upon surrender of a Global Note that is redeemed in part, the Paying Agent shall promptly forward such Global Note to the Trustee who shall make a notation on Schedule A thereof to reduce the principal amount of such Global Note to an amount equal to the unredeemed portion of the Global Note surrendered; provided, however, that each such Global Note shall be in a principal amount at maturity of €50,000 and any integral multiple of €1,000 in excess thereof.

 

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ARTICLE IV

COVENANTS

SECTION 4.1   Payment of Notes.  (a)  The Issuer shall pay the principal, premium, if any, interest and Additional Amounts, if any, on the Notes in the manner provided in such Notes and this Indenture.  An installment of principal of or interest on the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent holds prior to 12:00 p.m. London time on the Business Day immediately preceding any interest payment date and the Maturity Date money deposited by the Issuer in immediately available, freely transferable, cleared funds and designated for, and sufficient to pay the installment in full and is not prohibited from paying such money to the holders of the Notes pursuant to the terms of this Indenture.

(b)           The Issuer shall pay, to the extent such payments are lawful, interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and on overdue installments of interest and, on any Additional Amounts from time to time on demand at the rate borne by the Notes plus 1.0% per annum (except that overdue interest shall bear interest at the rate borne by the Notes until the expiry of any grace period, after which it shall bear interest at the rate borne by the Notes plus 1.0% per annum).  Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

SECTION 4.2   Maintenance of Office or Agency.  The Issuer shall maintain the office or agency (which office may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-Registrar) required under Section 2.3 where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served.  The Issuer shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Issuer shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 12.1.  The Issuer hereby initially designates the office of Citibank, N.A., London Branch as its office or agency at Agency & Trust, 14th Floor, Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, United Kingdom as required under Section 2.3 hereof.

SECTION 4.3   Limitation on Indebtedness.  (a)  CME shall not, and shall not permit any of its Restricted Subsidiaries to, Incur any Indebtedness; provided, however, that CME, the Issuer and any Guarantor may, subject to Section 4.3(c), Incur Indebtedness if on the date thereof, giving pro forma effect to such incurrence, the Consolidated Coverage Ratio for CME and its Restricted Subsidiaries is at least 2.00 to 1.00.

 

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(b)  Section 4.3(a) will not prohibit the Incurrence of the following Indebtedness:

	
  

	
(1)

	
Indebtedness of CME and of its Restricted Subsidiaries Incurred under one or more Credit Facilities in an aggregate principal amount up to €40 million at any time outstanding, including amounts outstanding under the Revolving Credit Facility;

	
  

	
(2)

	
Indebtedness of CME owing to and held by any Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owing to and held by CME or any Restricted Subsidiary; provided, however, that

	 	
(a)

	
if any member of the CET Group is an obligor on such Indebtedness and such Indebtedness constitutes Material Intercompany Debt, the lender’s claim in respect thereof is or forthwith is constituted as Permitted Intercompany Debt; and

	 	
(b)

	
  

	 	
(i) 

	
any subsequent issuance or transfer of Capital Stock or any other event which results in any such Indebtedness being held by a Person other than CME or a Restricted Subsidiary; and

	 	
(ii) 

	
any sale or other transfer of any such Indebtedness to a Person other than CME or a Restricted Subsidiary of CME

 

shall be deemed, in each case, to constitute an Incurrence of such Indebtedness by CME or such Restricted Subsidiary, as the case may be;

	
  

	
 (3)

	
Indebtedness represented by the Notes (excluding any Additional Notes) and by any Guarantees of the Notes;

	
  

	
(4)

	
Indebtedness represented by (a) any Indebtedness (other than the Indebtedness described in clauses (1), (2), (3), (6), (7), (8), (9), and (10) of this Section 4.3(b)) outstanding on the Issue Date and (b) any Refinancing Indebtedness Incurred in respect of any Indebtedness described in this clause (4) or clauses (3) or (5) or Incurred pursuant to Section 4.3(a);

	
  

	
(5)

	
Indebtedness of a Restricted Subsidiary Incurred and outstanding on the date on which such Restricted Subsidiary was acquired by CME (other than Indebtedness Incurred (a) to provide all or any portion of the funds utilized to consummate the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was otherwise acquired by CME or (b) otherwise in connection with, or in contemplation of, such acquisition); provided, however, that at the time such Restricted Subsidiary is acquired by CME, CME would have been able to Incur €1.00 of additional Indebtedness pursuant to Section 4.3(a) after giving effect to such acquisition and the Incurrence of such Indebtedness pursuant to this clause (5);

 

45

 

	
  

	
(6)

	
Indebtedness under Currency Agreements and Interest Rate Agreements; provided that in the case of Currency Agreements, such Currency Agreements are related to business transactions of CME or its Restricted Subsidiaries entered into in the ordinary course of business and not for speculative purposes and in the case of Currency Agreements and Interest Rate Agreements, such Currency Agreements and Interest Rate Agreements are entered into for bona fide hedging purposes of CME or its Restricted Subsidiaries (in each case, as determined in good faith by the Board of Directors or senior management of CME);

	
  

	
(7)

	
Indebtedness of CME or any of its Restricted Subsidiaries represented by Capitalized Lease Obligations, mortgage financings or purchase money obligations with respect to assets other than Capital Stock or other Investments, in each case incurred for the purpose of financing all or any part of the purchase price or cost of construction or improvements of property used in the business of CME or such Restricted Subsidiary, in an aggregate principal amount not to exceed €50 million at any time outstanding less the amount of any such Indebtedness incurred prior to the Issue Date in reliance on the corresponding provision by the 2009 Notes;

	
  

	
(8)

	
Indebtedness Incurred in respect of workers’ compensation claims, self-insurance obligations, performance, surety and similar bonds and completion guarantees provided by CME or a Restricted Subsidiary in the ordinary course of business;

	
  

	
(9)

	
Indebtedness arising from agreements of CME or a Restricted Subsidiary providing for indemnification, adjustment of purchase price or similar obligations, in each case, Incurred or assumed in connection with the disposition of any business, assets or Capital Stock of a Restricted Subsidiary, provided that the maximum aggregate liability in respect of all such Indebtedness shall at no time exceed the gross proceeds actually received by CME and its Restricted Subsidiaries in connection with such disposition;

	
  

	
(10)

	
Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business, provided, however, that such Indebtedness is extinguished within five Business Days of Incurrence;

	
  

	
(11)

	
in addition to the items referred to in clauses (1) through (10) above, Indebtedness of CME and its Restricted Subsidiaries in an aggregate outstanding principal amount which, when taken together with the principal amount of all other Indebtedness Incurred pursuant to this clause (11) and then outstanding, will not exceed €40 million at any time outstanding; and

 

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(12)

	
customer deposits and advance payments received in the ordinary course of business from customers for goods purchased in the ordinary course of business.

In each case above, debt permitted to be incurred also is permitted to include any “parallel debt” or similar obligations created in respect thereof.

(c)           Notwithstanding Sections 4.3(a) and 4.3(b), CME shall procure that no Restricted Subsidiary that is a member of the CET Group shall directly or indirectly Incur Indebtedness (other than Refinancing Indebtedness or Indebtedness Incurred under clauses (1), (8), (9), (10) or (11) of Section 4.3(b), any Indebtedness of the CET Group existing on the Issue Date and any debt that is or is forthwith constituted as Permitted Intercompany Debt), if on the date thereof, giving pro forma effect to such incurrence, the CET Leverage Ratio would exceed 2.25 to 1.00.

(d)           For purposes of determining compliance with, and the outstanding principal amount of any particular Indebtedness Incurred pursuant to and in compliance with, this Section 4.3:

	
  

	
(1)

	
in the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in Sections 4.3(a) and 4.3(b), CME, in its sole discretion, will classify such item of Indebtedness on the date of Incurrence, and may from time to time reclassify such item of Indebtedness, and only be required to include the amount and type of such Indebtedness in one of such clauses;

	
  

	
(2)

	
all Indebtedness outstanding on the Issue Date under any Credit Facility (including the Revolving Credit Facility) shall be deemed initially Incurred on the Issue Date under clause (1) of Section 4.3(b) and not under Section 4.3(a) or clause 4(b) of Section 4.3(b), and may not be reclassified pursuant to clause (1) of this Section 4.3(d); and

	
  

	
(3)

	
the amount of Indebtedness issued at a price that is less than the principal amount thereof will be equal to the amount of the liability in respect thereof determined in accordance with GAAP.

Accrual of interest, accrual of dividends, the accretion of accreted value, the payment of interest in the form of additional Indebtedness and the payment of dividends in the form of additional shares of Preferred Stock will not be deemed to be an Incurrence of Indebtedness for purposes of this Section 4.3. The amount of any Indebtedness outstanding as of any date shall be (i) the accreted value of the Indebtedness in the case of any Indebtedness issued with original issue discount and (ii) the principal amount or liquidation preference thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness.

If at any time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary of CME as of such date (and, if such Indebtedness is not permitted to be Incurred as of such date under this Section 4.3, CME shall be in Default hereunder).

 

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For purposes of determining compliance with any euro denominated restriction on the Incurrence of Indebtedness, the euro equivalent principal amount of Indebtedness denominated in a currency other than the euro shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit Indebtedness; provided that if such Indebtedness is Incurred to refinance other Indebtedness denominated in a currency other than the euro, and such refinancing would cause the applicable euro denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such euro denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such Refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced. Notwithstanding any other provision of this Section 4.3, the maximum amount of Indebtedness that CME may Incur pursuant to this Section 4.3 shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of currencies. The principal amount of any Indebtedness incurred to refinance other Indebtedness, if Incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such Refinancing Indebtedness is denominated that is in effect on the date of such refinancing.

SECTION 4.4   Limitation on Restricted Payments.  (a)  CME shall not, and shall not permit any of its Restricted Subsidiaries, directly or indirectly, to:

	
  

	
 (1)

	
declare or pay any dividend or make any distribution (including any payment in connection with any merger, amalgamation or consolidation involving CME or any Subsidiary of CME) on or in respect of its Capital Stock except:

	
  

	
 (a)

	
dividends or distributions payable solely in Capital Stock of CME (other than Disqualified Stock) or in options or warrants or other rights to purchase such Capital Stock of CME; and

	
  

	
(b)

	
dividends or distributions payable to CME or a Restricted Subsidiary of CME (and, if such Restricted Subsidiary has shareholders other than CME or other Restricted Subsidiaries, to its other shareholders on a pro rata basis);

	
  

	
(2)

	
purchase, redeem, retire or otherwise acquire for value any Capital Stock of CME held by Persons other than CME or a Restricted Subsidiary (other than in exchange for Capital Stock of CME (other than Disqualified Stock));

	
  

	
(3)

	
purchase, repurchase, prepay, repay, redeem, defease or otherwise acquire or retire for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any Subordinated Obligations (other than the purchase, repurchase, prepayment or repayment redemption, defeasance or other acquisition or retirement of Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of purchase, repurchase or acquisition); or

	
  

	
(4)

	
make any Restricted Investment in any Person;

(any such dividend, distribution, purchase, redemption, repurchase, defeasance, other acquisition, retirement or Restricted Investment referred to in clauses (1) through (4) shall be referred to herein as a “Restricted Payment”), if at the time CME or such Restricted Subsidiary makes such Restricted Payment:

 

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(a)

	
a Default shall have occurred and be continuing (or would result therefrom); or

	
  

	
(b)

	
CME is not able to Incur an additional €1.00 of Indebtedness pursuant to Section 4.3(a) after giving effect, on a pro forma basis, to such Restricted Payment; or

	
  

	
(c)

	
the aggregate amount of such Restricted Payment and all other Restricted Payments declared or made subsequent to September 17, 2009 (the issue date of CME’s 2009 Notes) would exceed the sum of:

	
  

	
 (i)

	
50% of Consolidated Net Income for the period (treated as one accounting period) from September 17, 2009 to the end of the most recent fiscal quarter ending prior to the date of such Restricted Payment for which financial statements are in existence (or, in the event Consolidated Net Income for such period is a deficit then, minus 100% of such deficit);

	
  

	
(ii)

	
100% of the aggregate Net Cash Proceeds received by CME from the issue or sale of its Capital Stock (other than Disqualified Stock) or other capital contributions subsequent to September 17, 2009 (other than Net Cash Proceeds received from an issuance or sale of such Capital Stock to a Subsidiary of CME or an employee stock ownership plan, option plan or similar trust established by CME or any of its Subsidiaries to the extent such sale to an employee stock ownership plan, option plan or similar trust is financed by loans from or guaranteed by CME or any of its Subsidiaries unless such loans have been repaid with cash on or prior to the date of determination);

	
  

	
(iii)

	
the amount by which Indebtedness of CME is reduced on CME’s balance sheet upon the conversion or exchange (other than by a Subsidiary of CME) subsequent to September 17, 2009 of any Indebtedness of CME convertible or exchangeable for Capital Stock (other than Disqualified Stock) of CME (less the amount of any cash, or other property, distributed by CME upon such conversion or exchange); and

	
  

	
(iv)

	
the amount equal to the net reduction in Restricted Investments made after September 17, 2009 by CME or any of its Restricted Subsidiaries in any Person resulting from:

	
  

	
(A)

	
repurchases or redemptions of such Restricted Investments by such Person, proceeds realized upon the sale of such Restricted Investment to an unaffiliated purchaser, repayments of loans or advances or other transfers of assets (including by way of dividend or distribution) by such Person to CME or any Restricted Subsidiary of CME not to exceed, in the case of any Person, the amount of Restricted Investments previously made by CME or any Restricted Subsidiary in such Person; or

 

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(B)

	
the redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as provided in the definition of “Investment”) not to exceed, in the case of any Unrestricted Subsidiary, the amount of Investments previously made by CME or any Restricted Subsidiary in such Unrestricted Subsidiary,

which amount in each case under this clause (iv) was included in the calculation of the amount of Restricted Payments; provided, however, that no amount will be included under this clause (iv) to the extent it is already included in Consolidated Net Income.

(b)           The provisions Section 4.4(a) will not prohibit:

	
  

	
 (1)

	
any purchase or redemption of Capital Stock or Subordinated Obligations of CME made by exchange for, or out of the proceeds of the substantially concurrent sale of, Capital Stock of CME (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary or an employee stock ownership plan or similar trust to the extent such sale to an employee stock ownership plan or similar trust is financed by loans from or guaranteed by CME or any Restricted Subsidiary unless such loans have been repaid with cash on or prior to the date of determination); provided, however, that (a) such purchase or redemption will be excluded in subsequent calculations of the amount of Restricted Payments and (b) the Net Cash Proceeds from such sale will be excluded from clause (c) (ii) of Section 4.4(a)(4);

	
  

	
(2)

	
any purchase or redemption of Subordinated Obligations made by exchange for, or out of the proceeds of the substantially concurrent sale of, Subordinated Obligations that is permitted to be Incurred pursuant to Section 4.3 and that qualifies as Refinancing Indebtedness; provided, however, that such purchase or redemption will be excluded in subsequent calculations of the amount of Restricted Payments;

	
  

	
(3)

	
so long as no Default or Event of Default has occurred and is continuing, any purchase or redemption of Subordinated Obligations from Net Available Cash to the extent permitted under Section 4.9 below; provided, however, that such purchase or redemption will be excluded in subsequent calculations of the amount of Restricted Payments;

	
  

	
(4)

	
dividends paid within 60 days after the date of declaration if at such date of declaration such dividends would have been permitted under this Section 4.4; provided, however, that such dividends will be included in subsequent calculations of the amount of Restricted Payments;

 

50

 

	
  

	
(5)

	
so long as no Default or Event of Default has occurred and is continuing, the purchase, redemption or other acquisition, cancellation or retirement for value of Capital Stock, or options, warrants, equity appreciation rights or other rights to purchase or acquire Capital Stock of CME or any Restricted Subsidiary of CME or any parent of CME held by any existing or former employees or management of CME or any Subsidiary of CME or their assigns, estates or heirs, in each case in connection with the repurchase provisions under employee stock option or stock purchase agreements or other agreements to compensate management employees; provided that such redemptions or repurchases pursuant to this clause will not exceed €3 million in the aggregate during any calendar year and €10 million in the aggregate for all such redemptions and repurchases; provided, however, that the amount of any such repurchase or redemption will be included in subsequent calculations of the amount of Restricted Payments;

	
  

	
(6)

	
repurchases of Capital Stock deemed to occur upon the exercise of stock options, warrants or other convertible securities if such Capital Stock represents a portion of the exercise price thereof or withholding tax thereon; provided, however, that such repurchases will be excluded from subsequent calculations of the amount of Restricted Payments;

	
  

	
(7)

	
so long as no Default or Event of Default has occurred and is continuing (or would result therefrom), the declaration and payment by CME of dividends or distributions on the common stock of CME in an amount not to exceed in any fiscal year 6% of Net Cash Proceeds received by CME from any Equity Offering;

	
  

	
(8)

	
so long as no Default has occurred or is continuing or would be caused thereby, other Restricted Payments in an aggregate amount not to exceed €40 million since the Issue Date, less the amount of any Restricted Payments made prior to the Issue Date in reliance on the corresponding provision of the 2009 Notes; provided, however, that such Restricted Payments will be included in subsequent calculations of the amount of Restricted Payments.

The amount of all Restricted Payments (other than cash) shall be the fair market value on the date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or issued by CME or such Restricted Subsidiary, as the case may be, pursuant to such Restricted Payment. The fair market value of any cash Restricted Payment shall be its face amount and any non-cash Restricted Payment shall be determined conclusively by the Board of Directors acting in good faith, such determination to be based upon a written opinion of an independent and reputable accounting, appraisal or investment banking firm of internationally recognized standing if the fair market value of such Restricted Payment is estimated to exceed €75 million.

SECTION 4.5   Corporate Existence.  Except as otherwise permitted by Section 4.18 and Article V hereof, the Issuer and each of the Guarantors shall do or cause to be done all things necessary to preserve and keep in full force and effect its respective corporate existence and the corporate, partnership, limited liability or other existence of each of the Restricted Subsidiaries in accordance with the respective organizational documents (as the same may be amended from time to time) of each such Person and the rights (charter and statutory) of the Restricted Subsidiaries; provided, however, that the Issuer and each of the Guarantors shall not be required to preserve any such right, or the corporate, partnership, limited liability or other existence of any of the Restricted Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer, each of the Guarantors and each of the Restricted Subsidiaries, taken as a whole.

 

51

 

SECTION 4.6   Limitation on Liens.  CME shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur or suffer to exist any Lien (other than Permitted Collateral Liens, in the case of Liens on assets constituting Collateral, or Permitted Liens, in the case of Liens on assets not constituting Collateral) upon any of its property or assets (including Capital Stock of Restricted Subsidiaries of CME), whether owned on the Issue Date or acquired after that date, which Lien is securing any Indebtedness of CME or any Restricted Subsidiary; provided that, in the case of Liens granted over assets that are not CET Collateral or assets owned by a member of the CET Group, such Liens may be granted if contemporaneously with the Incurrence of the Liens effective provision is made to secure the Indebtedness due under this Indenture and the Notes or, in respect of Liens on any Restricted Subsidiary’s property or assets, any Guarantee of such Restricted Subsidiary, equally and ratably with (or prior to in the case of Liens with respect to Subordinated Obligations) the Indebtedness secured by such Lien for so long as such Indebtedness is so secured.

SECTION 4.7   Waiver of Stay, Extension or Usury Laws.  The Issuer covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit or forgive the Issuer from paying all or any portion of the principal of and/or interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture, and (to the extent that it may lawfully do so) the Issuer hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted.

SECTION 4.8   Limitation on Restrictions on Distributions from Restricted Subsidiaries.

(a)           CME shall not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective any consensual encumbrance or consensual restriction on the ability of any Restricted Subsidiary to:

	
  

	
(1)

	
pay dividends or make any other distributions on its Capital Stock or pay any Indebtedness or other obligations owed to CME or any Restricted Subsidiary;

	
  

	
(2)

	
make any loans or advances to CME or any Restricted Subsidiary; or

	
  

	
(3)

	
transfer any of its property or assets to CME or any Restricted Subsidiary.

(b)           The provisions of Section 4.8(a) will not prohibit:

	
  

	
(i)

	
any encumbrance or restriction pursuant to this Indenture, the Revolving Credit Facility or any agreement in effect on the Issue Date;

	
  

	
(ii)

	
any encumbrance or restriction with respect to a Restricted Subsidiary or its property or assets in existence on or before the date on which such Restricted Subsidiary or its property or assets was acquired (directly or indirectly) by CME (other than encumbrances or restrictions relating to Indebtedness Incurred as consideration in, or to provide all or any portion of the funds utilized to consummate, the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by CME or in contemplation of the transaction) and outstanding on such date;

 

52

 

	
  

	
(iii)

	
any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to an agreement effecting a refunding, replacement or refinancing of Indebtedness referred to in clause (i) or (ii) of this Section 4.8(b) or this clause (iii) or contained in any amendment to an agreement relating to any Indebtedness referred to in clause (i) or (ii) of this Section 4.8(b) or this clause (iii); provided, however, that any such restrictions contained in any such amendments or any agreement effecting refunding, replacement or refinancing referred to above, are not materially more restrictive taken as a whole than the encumbrances and restrictions contained in the agreements relating to the Indebtedness referred to in clauses (i) or (ii) of this Section 4.8(b) in existence on the Issue Date or the date such Restricted Subsidiary became a Restricted Subsidiary, whichever is applicable;

	
  

	
(iv)

	
in the case of clause (3) of Section 4.8(a), any encumbrance or restriction:

	
  

	
(a)

	
that restricts in a customary manner the subletting, assignment or transfer of any property or asset that is subject to a lease, license or similar contract, or the assignment or transfer of any such lease, license or other contract;

	
  

	
(b)

	
contained in mortgages, pledges or other security agreements permitted under this Indenture to the extent such encumbrances or restrictions restrict the transfer of the property subject to such mortgages, pledges or other security agreements; or

	
  

	
(c)

	
pursuant to customary provisions restricting dispositions of real property interests set forth in any reciprocal easement agreements of CME or any Restricted Subsidiary;

	
  

	
(v)

	
(a) purchase money obligations for property acquired in the ordinary course of business and (b) Capitalized Lease Obligations permitted under this Indenture, in each case, that impose encumbrances or restrictions of the nature described in clause (3) of Section 4.8(a) on the property so acquired;

	
  

	
(vi)

	
any restriction with respect to a Restricted Subsidiary (or any of its property or assets) imposed pursuant to an agreement entered into for the direct or indirect sale or disposition of all or substantially all the Capital Stock or assets of such Restricted Subsidiary (or the property or assets that are subject to such restriction) pending the closing of such sale or disposition;

 

53

 

	
  

	
(vii)

	
encumbrances or restrictions arising or existing by reason of applicable law or any applicable rule, regulation or order, including applicable corporate law restrictions on the payment of dividends;

	
  

	
(viii)

	
net worth provisions in leases and other agreements entered into by CME or any Restricted Subsidiary in the ordinary course of business; and

	
  

	
(ix)

	
any encumbrance or restriction in any agreement or instrument relating to Indebtedness of CME or a Restricted Subsidiary permitted to be incurred after the Issue Date under Section 4.3 if the encumbrances or restrictions contained in the relevant agreement, taken as a whole, are not materially more disadvantageous to the Note holders than is customary in comparable financings or agreements (for which a determination in good faith by the Board of Directors shall be conclusive) and either (a) the Board of Directors has determined in good faith that such encumbrance or restriction will not materially affect the Issuer’s ability to make payments of principal, interest and Additional Amounts on the Notes when they become due and payable or (b) such encumbrance or restriction applies only if a default occurs in respect of a payment or financial covenant relating to such Indebtedness.

SECTION 4.9   Limitation on Sales of Assets and Subsidiary Stock.  (a) CME shall not, and shall not permit any of its Restricted Subsidiaries to, make any Asset Disposition unless:

	
  

	
(1)

	
CME or such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Disposition at least equal to the fair market value, as determined in good faith by the Board of Directors at the time of entering into an agreement to effect such Asset Disposition (including as to the value of all non-cash consideration), of the shares and assets subject to such Asset Disposition;

	
  

	
(2)

	
at least 75% of the consideration from such Asset Disposition received by CME or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash Equivalents or Additional Assets or a combination thereof; and

	
  

	
(3)

	
an amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by CME or such Restricted Subsidiary, as the case may be:

 

 

 

54

 

	
  

	
(a)

	
first, to the extent CME or any Restricted Subsidiary, as the case may be, elects (or is required by the terms of any Indebtedness), to prepay, repay or purchase Indebtedness (other than Disqualified Stock or Subordinated Obligations) of CME or of a Subsidiary Guarantor (in each case other than Indebtedness owed to CME or an Affiliate of CME) within 360 days from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; provided, however, that, in connection with any prepayment, repayment or purchase of Indebtedness pursuant to this clause (a), CME or such Restricted Subsidiary shall retire such Indebtedness and shall cause the related commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased; and provided further, that if the assets disposed of constitute CET Collateral, the Net Available Cash in respect thereof may only be used to prepay, repay or repurchase the Notes or Pari Passu Indebtedness, and other Pari Passu Indebtedness may be prepaid, repurchased or repaid only to the extent that Net Available Cost also is applied to ratably prepay, repay or repurchase Notes prior to or substantially concurrently therewith; and

	
  

	
(b)

	
second, to the extent CME or such Restricted Subsidiary elects, to invest in Additional Assets within 360 days from the later of the date of such Asset Disposition or the receipt of such Net Available Cash;

provided pending the final application of any such Net Available Cash in accordance with clause (a) or clause (b) above, CME and its Restricted Subsidiaries may temporarily reduce Indebtedness or otherwise invest in such Net Available Cash in any manner not prohibited by this Indenture.

 

55

 

(b)           Any Net Available Cash from Asset Dispositions that is not applied or invested as provided in Section 4.9(a) will be deemed to constitute “Excess Proceeds.” On the 361st day after an Asset Disposition, if the aggregate amount of Excess Proceeds exceeds €15 million, the Issuer shall be required to make an offer (“Asset Disposition Offer”) to all holders of Notes and, to the extent required by the terms of other Pari Passu Indebtedness, make an offer to all holders of other Pari Passu Indebtedness outstanding with similar provisions requiring the Issuer to make an offer to purchase or repay such Pari Passu Indebtedness with the proceeds from any Asset Disposition, to purchase the maximum principal amount of Notes and any such Pari Passu Indebtedness to which the Asset Disposition Offer applies, respectively, that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount of the Notes, pari passu Notes and other Pari Passu Indebtedness plus accrued and unpaid interest and Additional Amounts, if any, to the date of purchase, in accordance with the procedures set forth in this Indenture or the agreements governing the Pari Passu Indebtedness, as applicable, in denominations of €50,000 and any integral multiple of €1,000 in excess thereof in the case of the Notes.

(c)           To the extent that the aggregate amount of Notes and other Pari Passu Indebtedness so validly tendered and not properly withdrawn pursuant to an Asset Disposition Offer is less than the Excess Proceeds, such remaining Excess Proceeds shall no longer constitute Excess Proceeds and may be used for any purpose not prohibited in this Indenture. If the aggregate principal amount of Notes surrendered by holders thereof and other Pari Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and Pari Passu Indebtedness to be purchased on a pro rata basis on the basis of the aggregate principal amount of tendered Notes and Pari Passu Indebtedness. Upon completion of such Asset Disposition Offer, the amount of Excess Proceeds shall be reset at zero.

(d)           Notice of the Asset Disposition Offer will be given in accordance with this Indenture. The Asset Disposition Offer will remain open for a period of 20 Business Days following its commencement, except to the extent that a longer period is required by applicable law (the “Asset Disposition Offer Period”). No later than five Business Days after the termination of the Asset Disposition Offer Period (the “Asset Disposition Purchase Date”), the Issuer shall purchase the principal amount of Notes and Pari Passu Indebtedness, required to be purchased pursuant to this Section 4.9 or, if less than the Asset Disposition Offer Amount has been so validly tendered, all Notes and Pari Passu Indebtedness validly tendered in response to the Asset Disposition Offer.

(e)           If the Asset Disposition Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest will be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest will be payable to holders of the Notes who tender Notes pursuant to the Asset Disposition Offer.

 

56

 

(f)            On or before the Asset Disposition Purchase Date, the Issuer shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount of Notes and Pari Passu Indebtedness, respectively, or portions of Notes and Pari Passu Indebtedness so validly tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less than the Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all Notes and Pari Passu Indebtedness so validly tendered and not properly withdrawn, in case of the Notes in denominations of €50,000 and any integral multiple of €1,000 in excess thereof. The Issuer shall deliver to the Trustee an Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the Issuer, in accordance with the terms of this Section 4.9 and, in addition, the Issuer shall deliver all certificates and Notes required, if any, by the agreements governing the Pari Passu Indebtedness. The Issuer or the Paying Agent, as the case may be, shall promptly (but in any case not later than five Business Days after termination of the Asset Disposition Offer Period) mail or deliver to each tendering holder of Notes or holder or lender of Pari Passu Indebtedness, as the case may be, an amount equal to the purchase price of the Notes or Pari Passu Indebtedness so validly tendered and not properly withdrawn by such holder or lender, as the case may be, and accepted by the Issuer for purchase, and the Issuer shall promptly issue a new Note, and the Trustee, upon delivery of an Officers’ Certificate from the Issuer shall authenticate and mail or deliver such new Note to such holder, in a principal amount equal to any unpurchased portion of the Note surrendered; provided that each such new Note will be in a principal amount of €50,000 and any integral multiple of €1,000 in excess thereof. Any Note not so accepted shall be promptly mailed or delivered by the Issuer to the holder thereof. The Issuer shall publicly announce the results of the Asset Disposition Offer on the Asset Disposition Purchase Date.

(g)           For the purposes of this Section 4.9, the following will be deemed to be cash:

	
  

	
(1)

	
the assumption by the transferee of Indebtedness (other than Subordinated Obligations or Disqualified Stock) of CME or Indebtedness (other than Disqualified Stock) of any Guarantor and the release of CME or such Guarantor from all liability on such Indebtedness in connection with such Asset Disposition (in which case CME shall, without further action, be deemed to have applied such deemed cash to Indebtedness in accordance with clause (a) above); provided that to the extent that the assets that are the subject of an Asset Disposition are CET Collateral, only the assumption and release of Indebtedness that is Pari Passu Indebtedness shall be qualify as “cash” under this clause (1); and

	
  

	
(2)

	
securities, Notes or other obligations received by CME or any Restricted Subsidiary from the transferee that are converted within 90 days by CME or such Restricted Subsidiary into cash.

(h)           To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 4.9, the Issuer’s compliance with the applicable securities laws and regulations shall not be deemed to be in breach of CME’s and the Issuer’s obligations under this Indenture and the terms of any Pari Passu Indebtedness, as applicable by virtue of any conflict.

SECTION 4.10   Limitation on Affiliate Transactions.  (a)  CME shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or conduct any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of CME (an “Affiliate Transaction”) unless:

 

57

 

	
  

	
(1)

	
the terms of such Affiliate Transaction are no less favorable to CME or such Restricted Subsidiary, as the case may be, than those that could be obtained in a comparable transaction at the time of such transaction in arm’s length dealings with a Person who is not such an Affiliate;

	
  

	
(2)

	
in the event such Affiliate Transaction involves an aggregate amount in excess of €20 million, the terms of such transaction have been approved by a majority of the members of the Board of Directors and by a majority of the members of the Board of Directors having no personal stake in such transaction, if any (and such majority or majorities, as the case may be, determines that such Affiliate Transaction satisfies the criteria in clause (1) above); and

	
  

	
(3)

	
in the event such Affiliate Transaction involves an aggregate amount in excess of €75 million, CME has received a written opinion from an independent investment banking firm of internationally recognized standing that such Affiliate Transaction is not materially less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s length basis from a Person that is not an Affiliate.

CME shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or conduct any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of a Restricted Subsidiary of CME (a “Restricted Subsidiary Affiliate Transaction”) unless:

	
  

	
(1)

	
the terms of such Restricted Subsidiary Affiliate Transaction are no less favorable to CME or such Restricted Subsidiary, as the case may be, than those that could be obtained in a comparable transaction at the time of such transaction in arm’s length dealings with a Person who is not such an Affiliate; and

	
  

	
(2)

	
in the event such Restricted Subsidiary Affiliate Transaction involves an aggregate amount in excess of €5 million, the terms of such transaction have been approved by a majority of the members of the Board of Directors and by a majority of the members of the Board of Directors having no personal stake in such transaction, if any (and such majority or majorities, as the case may be, determines that such Restricted Subsidiary Affiliate Transaction satisfies the criteria in clause (1) above).

(b)           Section 4.10(a) will not apply to:

	
  

	
(1)

	
any Restricted Payment (other than a Restricted Investment) permitted to be made pursuant to Section 4.4;

	
  

	
(2)

	
any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements, stock options and stock ownership plans and other reasonable fees, compensation, benefits and indemnities paid or entered into by CME or its Restricted Subsidiaries in the ordinary course of business to or with members of the Board of Directors, officers or employees of CME and its Restricted Subsidiaries approved by the Board of Directors;

 

58

 

	
  

	
(3)

	
loans or advances to employees in the ordinary course of business of CME or any of its Restricted Subsidiaries and consistent with past practice of CME or such Restricted Subsidiary; provided that such loans or advances do not exceed US$2 million in the aggregate outstanding at any one time;

	
  

	
(4)

	
any transaction between CME and a Restricted Subsidiary or between Restricted Subsidiaries and Guarantees issued by CME or a Restricted Subsidiary for the benefit of CME or a Restricted Subsidiary as the case may be in accordance with Section 4.3;

	
  

	
(5)

	
the payment of reasonable and customary fees paid to, and indemnity provided on behalf of, directors of CME or any Restricted Subsidiary of CME; and

	
  

	
(6)

	
the performance of obligations of CME or any of its Restricted Subsidiaries under the terms of any agreement to which CME or any of its Restricted Subsidiaries is a party as of or on the Issue Date, as these agreements may be amended, modified, supplemented, extended or renewed from time to time; provided, however, that any future amendment, modification supplement, extension or renewal entered into after the Issue Date will be permitted to the extent that its terms are not materially more disadvantageous to the holders of the Notes, taken as a whole, than the terms of the arrangements in place on the Issue Date.

(c)           CME shall procure that none of the Issuer or any member of the CET Group shall directly or indirectly enter into or conduct any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with CME or any Restricted Subsidiary of CME that is not a member of the CET Group (each a “Related CME Person”) unless the terms of such transaction are not materially less favorable to the CET Group than those that could be obtained in a comparable transaction at the time of such transaction in arm’s length dealings with a Person that is not a Related CME Person.

(d)           Section 4.10(c) shall not apply to (1) any dividend or redemption of capital of the Issuer; or (2) compliance by any member of the CET Group or CME or any of CME’s Restricted Subsidiaries with the terms of any agreement to which it is a party as of or on the Issue Date, as these agreements may be amended, modified, supplemented, extended or renewed from time to time; provided, however, that any future amendment, modification supplement, extension or renewal entered into after the Issue Date will be permitted to the extent that its terms are not materially more disadvantageous, taken as a whole, to the holders of the Notes than the terms of the arrangements in place on the Issue Date.

SECTION 4.11   Listing.  The Issuer shall use its commercially reasonable efforts to cause the Notes to be listed on the Luxembourg Stock Exchange (or, failing the approval of such listing, it shall use its commercially reasonable efforts to cause the Notes to be listed on another stock exchange reasonably satisfactory to the Issuer and the Initial Purchasers) as soon as practicable and in any event prior to the date of the first interest payment and cause that such listing continues for so long as any of the Notes are outstanding.

SECTION 4.12   Reports.  CME shall file with the Commission and provide to the Issuer and the Trustee, and make available to the holders of the Notes, without cost to the Trustee or the holders of the Notes, within 10 days after it files them with the Commission, the information required to be contained in the following reports (or required in such successor or comparable form), including any guarantor financial information required by Regulation S-X:

 

59

 

	
  

	
(1)

	
within 90 days after the end of CME’s fiscal year (or such shorter period as may be required by the Commission), annual reports on Form 10-K (or any successor or comparable form) containing the information required to be contained therein (or required in such successor or comparable form);

	
  

	
(2)

	
within 45 days after the end of each of the first three fiscal quarters in each fiscal year of CME (or such shorter period as may be required by the Commission) reports on Form 10-Q (or any successor or comparable form); and

	
  

	
(3)

	
promptly from time to time after the occurrence of an event required to be therein reported (and in any event within the time period specified for filing of current reports on Form 8-K by the Commission), such other reports on Form 8-K (or any successor or comparable form).

If CME has designated any of its Subsidiaries as Unrestricted Subsidiaries and any such Unrestricted Subsidiary or group of Unrestricted Subsidiaries constitute Significant Subsidiaries of CME, then the annual and quarterly information required by the first two clauses of this Section 4.12 shall include a presentation, either on the face of the financial statements or in the footnotes thereto, of the net revenues, depreciation, amortization, operating income, net income, cash, third-party debt, total assets and total equity of CME and its Restricted Subsidiaries separate from the financial condition and results of operations of such Unrestricted Subsidiaries of CME.

The Issuer shall provide to the Trustee and make available to the holders of the Notes, without cost to the Trustee or the holders of the Notes, the information required to be contained in the following reports (or required in such successor or comparable form):

(1)           within 90 days after the end of the Issuer’s fiscal year, three years of consolidated financial statements for the CET Group, audited in accordance with GAAP, accompanied by the auditor’s report thereon; and

(2)           within 75 days after the end of each of the first three fiscal quarters in each fiscal year of the Issuer quarterly financial statements in relation to the CET Group, consisting of a condensed consolidated balance sheet, statement of operations and comprehensive income, statement of equity and statement of cashflows prepared in accordance with GAAP (without notes).

For so long as the Notes are listed on the Official List of the Luxembourg Stock Exchange for trading on the Euro MTF Market, and the rules of that exchange so require, copies of the Issuer’s organizational documents and this Indenture and the most recent consolidated financial statements of the Issuer described in clauses (1) and (2) above may be inspected and obtained at the office of the Paying Agent.

SECTION 4.13   Limitation on Lines of Business.  CME shall not, and shall not permit any Restricted Subsidiary to, engage in any business other than a Permitted Business.

 

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SECTION 4.14   Restrictions on Business Activities of CET Group.  The CET Group shall not conduct any activity or own any asset or incur any liability except those activities, assets or liabilities related to the operation of the business of the CME Group in the Czech Republic and the Slovak Republic, except for activities, assets or liabilities that are a reasonable extension thereof, ancillary or complementary thereto or which do not represent a substantial portion of the activities, assets or liabilities of the CET Group, taken as a whole.

SECTION 4.15   Change of Control and Rating Decline.  If a Change of Control Triggering Event occurs, each holder of Notes shall have the right to require the Issuer to repurchase all or any part (equal to €50,000, and any integral multiple of €1,000 in excess thereof) of such holder’s Notes at a purchase price per Note in cash equal to 101% of the principal amount of such Note plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant interest payment date), although no Note of €50,000 in original principal amount or less will be redeemed in part.

Within 30 days following any Change of Control Triggering Event, the Issuer shall provide notice (the “Change of Control Offer”) in accordance with the procedures described under Section 12.1, stating:

	
  

	
 (1)

	
that a Change of Control Triggering Event has occurred and that holders have the right to require the Issuer to purchase such holder’s Notes at a purchase price in cash equal to 101% of the principal amount of such Notes plus accrued and unpaid interest, if any, and premium, if any, to the date of purchase (the “Change of Control Payment”);

	
  

	
(2)

	
the repurchase date (which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed) (the “Change of Control Payment Date”);

	
  

	
(3)

	
the circumstances and relevant facts regarding the Change of Control; and

	
  

	
(4)

	
the procedures determined by the Issuer, consistent with this Indenture that a holder must follow in order to have its Notes repurchased.

On the Change of Control Payment Date, the Issuer shall, to the extent lawful:

	
  

	
(1)

	
accept for payment all Notes or portions of Notes (in denominations of €50,000 and any integral multiple of €1,000 in excess thereof) properly tendered under the Change of Control Offer;

	
  

	
(2)

	
deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes so tendered; and

	
  

	
(3)

	
deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Issuer.

The Paying Agent shall promptly either (x) pay to the holder against presentation and surrender (or, in the case of partial payment, endorsement) of the Notes in global form or (y) in the event that the Notes are in the form of Definitive Notes, mail to each holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee shall promptly authenticate and deliver (or cause to be transferred by book entry) to the holder of such Notes in global form a new Note or Notes in global form or, in the case of Definitive Notes, mail to each holder a new Note in definitive form equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be in a principal amount of €50,000 and any integral multiple of €1,000 in excess thereof.

 

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If the Change of Control Payment Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest, if any, shall be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest shall be payable to holders who tender pursuant to the Change of Control Offer.

The provisions described above that require the Issuer to make a Change of Control Offer following a Change of Control Triggering Event will be applicable whether or not any other provisions of this Indenture are applicable.

The Issuer shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if another party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Issuer and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer.

To the extent that the provisions of any securities or other applicable laws or regulations conflict with provisions of this Indenture, compliance with the applicable laws and regulations will not be deemed to be in breach of the obligations described in this Indenture by virtue of the conflict.

SECTION 4.16   Additional Amounts.  At least 30 days prior to each date on which payment of principal, premium, if any, or interest on the Notes or any Guarantee is due and payable (unless such obligation to pay Additional Amounts arises shortly before or at some time after the 30th day prior to such date, in which case it shall be as soon as practicable after such obligation arises), if the Payor shall be obligated to pay Additional Amounts pursuant to Paragraph 2 of the Notes (the “Additional Amounts”) with respect to any such payment, the Payor shall deliver to the Trustee an Officers’ Certificate stating that such Additional Amounts will be payable, the amounts so payable and shall set forth such other information necessary to enable the Trustee or the Paying Agent, as the case may be, to pay such Additional Amounts to the holders of the Notes on the payment date.  Each such Officers’ Certificate shall be relied upon until the receipt of a further Officers’ Certificate addressing such matters.  The Payor shall pay to the Trustee, or the Paying Agent, as the case may be, such Additional Amounts and, if paid to a Paying Agent other than the Trustee, shall provide the Trustee with documentation evidencing the payment of such Additional Amounts.  Copies of such documentation shall be made available to the holders of the Notes upon request.

The Payor shall (i) make any required withholding or deduction and (ii) remit the full amount deducted or withheld to the Relevant Taxing Jurisdiction in accordance with applicable law. The Payor shall use all reasonable efforts to obtain certified copies of tax receipts evidencing the payment of any Taxes so deducted or withheld from each Relevant Taxing Jurisdiction imposing such Taxes and shall provide such certified copy to each holder of a Note. The Payor shall attach to each certified copy a certificate stating (x) that the amount of withholding Taxes evidenced by the certified copy was paid in connection with payments in respect of the principal amount of Notes then outstanding and (y) the amount of such withholding Taxes paid per €1,000 principal amount of the Notes.

 

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The foregoing obligations of this Section 4.16 will survive any termination, defeasance or discharge of this Indenture and will apply with appropriate changes to any jurisdiction in which any successor Person to a Payor is organized or any political subdivision or taxing authority or agency thereof or therein.

Whenever in this Indenture or in the Notes there is mentioned, in any context, the payment of principal, premium, if any, redemption prices or purchase prices in connection with a redemption or purchase of the Notes, as applicable, or interest, if any, or any other amount payable on or with respect to any Note and the Guarantees, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof.

SECTION 4.17   Payment of Non-Income Taxes and Similar Charges.  The Payor shall pay any present or future stamp, court or documentary taxes, or any other excise or property taxes, charges or similar levies which arise in any jurisdiction from the execution, delivery or registration of the Notes or any other document or instrument referred to therein (other than a transfer of the Notes), or the receipt of any payments with respect to the Notes or the Guarantees, excluding any such taxes, charges or similar levies imposed by any jurisdiction other than a Relevant Taxing Jurisdiction, other than those resulting from, or required to be paid in connection with, the enforcement of the Notes, the Guarantees or any other such document or instrument following the occurrence of any Event of Default with respect to the Notes.

SECTION 4.18   Compliance Certificate; Notice of Default.  The Issuer shall deliver to the Trustee within 120 days after the end of each fiscal year an Officers’ Certificate stating (a) that in the course of the performance by the signers of their duties as Officers of the Issuer they would normally have knowledge of any Default and whether or not the signers know of any Default that occurred during such period.  If they do, the certificate shall describe the Default, its status and what action the Issuer is taking or proposes to take with respect thereto and (b) that no recording, filing, re-recording or re-filing of this Indenture and the Security Documents is necessary to maintain the security interest intended to be created thereby for the benefit of the holders of the Notes.

Upon becoming aware of, and as of such time that the Issuer should reasonably have become aware of, a Default, the Issuer also shall deliver to the Trustee within five Business Days of the occurrence of such Default, written notice of such events which would constitute a Default, their status and what action the Issuer is taking or proposes to take in respect thereof.

SECTION 4.19   Merger, Amalgamation and Consolidation.  (a) CME shall not consolidate with, amalgamate or merge with or into, or convey, transfer or lease all or substantially all of its assets to, any Person, unless:

	
  

	
(1)

	
the resulting, surviving or transferee Person (the “Successor Company”) will be a Person organized and existing under the laws of Bermuda, any member state of the European Union that was a member of the European Union as of the Issue Date, or of the United States of America, any State thereof or the District of Columbia, and not a natural Person, and the Successor Company (if not CME) shall expressly assume by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of CME under the Notes, this Indenture, the Security Documents, the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement;

 

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(2)

	
immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Company or any Subsidiary of the Successor Company as a result of such transaction as having been Incurred by the Successor Company or such Subsidiary at the time of such transaction), no Default or Event of Default shall have occurred and be continuing;

	
  

	
(3)

	
immediately after giving effect to such transaction, the Successor Company would be able to Incur at least an additional €1.00 of Indebtedness pursuant to Section 4.3; and

	
  

	
(4)

	
CME shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger or transfer and such supplemental indenture (if any) comply with this Indenture.

For purposes of this Section 4.19, the sale, lease, conveyance, assignment, transfer, or other disposition of all or substantially all of the properties and assets of one or more Subsidiaries of CME, which properties and assets, if held by CME instead of such Subsidiaries, would constitute all or substantially all of the properties and assets of CME on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and assets of CME.

(b)           The Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, CME under this Indenture, the Security Documents, the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement and any other agreement to which the predecessor was a party and the predecessor shall be released from those obligations, but, in the case of a lease of all or substantially all of its assets, CME shall not be released from the obligation to pay the principal or premium, if any, and interest on the Notes.

(c)           Notwithstanding the preceding clause (3) and clause (4) of Section 4.19(a), any Restricted Subsidiary of CME that is not a member of the CET Group may consolidate with, amalgamate, merge into or transfer all or part of its properties and assets to CME.

(d)           The Issuer shall not, and CME shall procure that the Issuer shall not, consolidate with, amalgamate or merge with or into, or convey, transfer or lease all or substantially all of its assets to, any Person, unless:

(1)            the Successor Company shall be a Person organized and existing under the laws of the Czech Republic, and not a natural Person, and the Successor Company (if not the Issuer) shall expressly assume by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Issuer under the Notes, this Indenture, the Security Documents, the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement;

 

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(2)            immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Company or any Subsidiary of the Successor Company as a result of such transaction as having been Incurred by the Successor Company or such Subsidiary at the time of such transaction), no Default or Event of Default shall have occurred and be continuing;

(3)           any Indebtedness of the CET Group resulting from the transaction could have been incurred in compliance with Section 4.3(c) and

(4)           The Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture (if any) comply with this Indenture.

For purposes of this Section 4.19, the sale, lease, conveyance, assignment, transfer, or other disposition of all or substantially all of the properties and assets of one or more Subsidiaries of the Issuer, which properties and assets, if held by the Issuer instead of such Subsidiaries, would constitute all or substantially all of the properties and assets of the Issuer on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Issuer.

(e)           The Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture, the Security Documents, the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement, and any other document to which the predecessor was a party, and the predecessor company shall be released from those obligations but, in the case of a lease of all or substantially all of its assets, the Issuer shall not be released from the obligation to pay the principal or premium, if any, and interest on the Notes.

(f)            In addition, CME shall not permit any Subsidiary Guarantor to consolidate with, amalgamate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or a series of related transactions to, another Person whether or not affiliated with such Subsidiary Guarantor unless:

(1)           (a) the resulting, surviving or transferee Person will be a Person organized and existing under the laws of Bermuda, any member state of the European Union that was a member of the European Union as of the Issue Date, or the United States of America, any State thereof or the District of Columbia, and not a natural Person, and such Person (if not the Subsidiary Guarantor) will expressly assume all the obligations of such Subsidiary Guarantor under its Guarantee and this Indenture, including the Guarantee of such Guarantor pursuant to a supplemental indenture executed and delivered to the Trustee in the form and substance reasonably satisfactory to the Trustee, as well as the Security Documents, the CET Group Intercreditor Agreement and (if applicable) the Existing Intercreditor Agreement; (b) immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the resulting, surviving or transferee Person or any Restricted Subsidiary as a result of such transaction as having been Incurred by such Person or Restricted Subsidiary at the time of such transaction), no Default or Event of Default shall have occurred and be continuing; (c) if the transaction includes a member of the CET Group, any Indebtedness of the CET Group resulting from the transaction could have been incurred in compliance with Section 4.3(c); and (d) CME shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation merger or transfer and such supplemental indenture (if any) comply with this Indenture; or

 

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(2)           the transaction constitutes a disposal to a Person other than CME or a Restricted Subsidiary is made in compliance with Section 4.9.

The Person formed by or surviving such consolidation, amalgamation or merger (if other than the Subsidiary Guarantor) or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made will succeed to, and be substituted for, and may exercise every right and power of, such Subsidiary Guarantor under this Indenture, its Guarantee, the Security Documents and each other document to which the predecessor was a party, and such predecessor Subsidiary Guarantor shall be released from those obligations but in the case of a lease of all or substantially all of its assets, such Subsidiary Guarantor shall not be released from its obligation under its Guarantee to pay the principal of, premium, if any, and interest on the Notes in the event of a default as described above.

(g)           The following additional conditions will apply to each transaction described in this Section 4.19:

(1)           to the extent required, CME, the Guarantors or the relevant Successor Company, as applicable, shall cause such amendments or other instruments to be filed and recorded in such jurisdictions as may be required by applicable law to preserve and protect the Liens under the Security Documents on the Collateral owned by or transferred to such Person, together with such financing statements or similar documents as may be required to perfect any security interests in such Collateral which may be perfected by the filing of a financing statement under any applicable law;

(2)           the Collateral owned by or transferred to CME, a Guarantor, or the Successor Company, as applicable, will (A) continue to constitute Collateral under the Security Documents; and (B) not be subject to any Lien other than Liens permitted by this Indenture; and

(3)           the Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the relevant obligor under this Indenture, but, in the case of a lease of all or substantially all of CME’s or a Guarantor’s assets, CME or, as applicable, such Guarantor shall not be released from the obligation to pay the principal of, premium, if any, and interest, and Additional Amounts, if any, on the Notes.

SECTION 4.20   Payments for Consent.  CME shall not, and shall not permit any of its Subsidiaries or Affiliates to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any holder of the Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid and is paid to all holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement.

SECTION 4.21   Limitations on Sale of Capital Stock of Restricted Subsidiaries.  CME shall not, and shall not permit any Restricted Subsidiary of CME to, transfer, convey, sell, lease or otherwise dispose of any Voting Stock of any Restricted Subsidiary or to issue any of the Voting Stock of a Restricted Subsidiary (other than, if necessary, shares of its Voting Stock constituting directors’ qualifying shares) to any Person except:

 

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(1)           to CME or a Subsidiary; or

(2)           in compliance with clauses (1) and (2) of Section 4.9 and immediately after giving effect to such issuance or sale such Restricted Subsidiary would continue to be a Restricted Subsidiary or would no longer constitute a Restricted Subsidiary and any Investment in such Person remaining after giving effect thereto would be permitted to be made under Section 4.4.

Notwithstanding the preceding paragraph, CME may sell all the Voting Stock of a Restricted Subsidiary as long as CME complies with Section 4.9.

SECTION 4.22   Additional Guarantees.  CME shall cause each Restricted Subsidiary that after the Issue Date, guarantees Indebtedness under the Revolving Credit Facility or any other Indebtedness of the Issuer or a Guarantor to simultaneously or prior thereto provide a Guarantee on substantially the same terms and conditions as those set forth in Exhibit D hereto.

CME shall cause any Restricted Subsidiary that is a Material Subsidiary and not a Guarantor to provide a Guarantee on substantially the same terms and conditions as those set forth in Exhibit D hereto within 60 Business Days of delivery of CME’s audited annual reports to the Trustee pursuant to this Indenture.

Each such additional guarantee of the Notes is an “Additional Guarantee.”

Notwithstanding the foregoing, CME shall not be obligated to cause such Restricted Subsidiary to guarantee the Notes to the extent that the grant of such Guarantee would not be consistent with applicable laws, would be reasonably likely to result in any liability for officers, directors or shareholders of such Restricted Subsidiary or would result in any material current or future cost, tax or expense that cannot be avoided by reasonable measures available to CME.

SECTION 4.23   Delivery of Security.  CME shall deliver, or cause to be delivered, on the Issue Date all of the Collateral (subject to filing and registration requirements), except that (i) in the case of the pledge over the ownership interests of Media Pro Pictures s.r.o, the Issuer shall use its reasonable best efforts to deliver such pledge and evidence of the registration thereof within 20 Business Days after the Issue Date, (ii) in the case of the mortgage over the immovable assets of the Issuer, the Issuer shall use its reasonable best efforts to deliver such mortgage and evidence of the registration thereof within 30 Business Days after the Issue Date, (iii) in the case of the pledge over the movable assets and enterprise of the Issuer, the Issuer shall use its reasonable best efforts to deliver such pledge and evidence of registration thereof within 10 Business Days after the Issue Date and (iv) in the case of the pledge over all the ownership interests in the Issuer, the Issuer shall use its best efforts to have the registration of such pledge completed within 10 Business Days after the Issue Date.

 

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SECTION 4.24   Impairment of Security Interest.  CME shall not, and shall not permit any of its Restricted Subsidiaries to, take or omit to take any action which action or omission would have the result of materially impairing the security interests with respect to the Collateral (it being understood that the incurrence of Permitted Collateral Liens in accordance with this Section 4.24, including the release and re-taking of one or more liens in connection therewith, and any actions permitted under Section 4.6, any disposal of assets that is a Permitted Transaction and any release of assets authorized by this Indenture, shall under no circumstances be deemed to materially impair the security interest with respect to the Collateral) created by the Security Documents for the benefit of the Note holders and CME shall not, and shall not permit any Restricted Subsidiary to, grant to any Person other than the Trustee, the Security Agent and the beneficiaries of the Security Documents any interest whatsoever in any of the Collateral, except pursuant to any Permitted Collateral Liens, as permitted by Section 4.6; provided, however, that any Security Document may be amended, extended, renewed, restated, supplemented or otherwise modified or replaced, if contemporaneously with any such action, CME delivers to the Trustee, either (1) a solvency opinion, in form and substance reasonably satisfactory to the Trustee, from an independent financial advisor confirming the solvency of CME and its Subsidiaries, taken as a whole, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement, and an Opinion of Counsel (subject to any necessary qualifications relating to hardening periods and other qualifications customary for this type of Opinion of Counsel), in form and substance reasonably satisfactory to the Trustee, confirming that, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement (followed by an immediate retaking of a lien of at least equivalent ranking over the same assets), the Lien or Liens created under the Security so amended, extended, renewed, restated, supplemented, modified or replaced are valid Liens or (2) an Opinion of Counsel, in form and substance reasonably satisfactory to the Trustee, confirming that, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or replacement, the Lien or Liens created under the Security so amended, extended, renewed, restated, supplemented, modified or replaced are valid Liens not otherwise subject to any limitation, imperfection or new hardening period, in equity or at law, that such Lien or Liens were not otherwise subject to immediately prior to such amendment, extension, renewal, restatement, supplement, modification or replacement. In the event that CME complies with the requirements of this Section 4.24, the Trustee shall (subject to customary protections and indemnifications) consent to any such amendment, extension, renewal, restatement, supplement, modification or replacement and shall direct the Security Agent to give effect to any such amendment, extension, renewal, restatement, supplement, modification or replacement.

SECTION 4.25   Additional Intercreditor Agreements.  (a) At the request of the Issuer, at the time of, or prior to, the Incurrence by the Issuer or any Guarantor of any Indebtedness permitted pursuant to this Indenture, the Issuer, the relevant Guarantors and the Trustee shall enter into with the holders of such Indebtedness (or their duly authorized representatives) an intercreditor agreement (an “Additional Intercreditor Agreement” and, together with the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement, the “Intercreditor Agreements”) on substantially the same terms as the CET Group Intercreditor Agreement (or terms more favorable to the Issuer); provided that such Additional Intercreditor Agreement will not impose any personal obligations on the Trustee or adversely affect the rights, duties, liabilities or immunities of the Trustee under this Indenture or any Intercreditor Agreement.  If so requested by the Issuer, the Trustee is authorized to direct the Security Agent to similarly enter into such Additional Intercreditor Agreement.

 

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(b) At the request of the Issuer, without the consent of holders of the Notes, and at the time of, or prior to, the incurrence by the Issuer or a Guarantor of Indebtedness permitted to be incurred pursuant to Section the preceding paragraph, the Issuer or the relevant Guarantor and the Trustee shall enter into one or more amendments to any Intercreditor Agreement or Additional Intercreditor Agreement to: (i) cure any ambiguity, omission, defect or inconsistency in any of the Intercreditor Agreements, (ii) increase the amount of Indebtedness of the types covered by any of the Intercreditor Agreements that may be incurred by the Issuer or a Guarantor that is subject to any of the Intercreditor Agreements in a manner not prohibited by this Indenture and in a manner substantially consistent with the ranking and other terms of the CET Group Intercreditor Agreement, (iii) add Guarantors to any of the Intercreditor Agreements, (iv) further secure the Notes, (v) make provision for the security securing any Notes, (vi) provide for the discharge of any of the Intercreditor Agreements to the extent that Indebtedness thereunder has been discharged or is to be refinanced, or (vii) make any other such change to any of the Intercreditor Agreements that does not adversely affect the holders of the Notes in any material respect. The Issuer shall not otherwise direct the Trustee to enter into any amendment to any intercreditor agreement without the consent of holders of the Notes except as otherwise permitted by CET Group Intercreditor Agreement and the Issuer may only direct the Trustee to enter into any amendment to the extent such amendment does not impose any personal obligations on the Trustee or adversely affect the rights, duties, liabilities or immunities of the Trustee under this Indenture or any Intercreditor Agreement.  If so requested by the Issuer, the Trustee is authorized to direct the Security Agent to similarly enter into such amendment.

Each Note holder shall be deemed to have agreed to and accepted the terms and conditions of each of the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement or an Additional Intercreditor Agreement (whether then entered into or entered into in the future pursuant to the provisions described herein). A copy of any of the Intercreditor Agreements shall be available for inspection during normal business hours on any Business Day upon prior written request at the office of the Issuer.

ARTICLE V

[RESERVED]

ARTICLE VI

DEFAULT AND REMEDIES

SECTION 6.1   Events of Default.  Whenever used herein with respect to the Notes, “Event of Default” means any one of the following events which shall have occurred and be continuing:

(1)           default in any payment of interest or Additional Amounts, if any, on any Note when due, continued for 30 days;

(2)           default in the payment of principal of or premium, if any, on any Note when due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise;

(3)           failure by CME, the Issuer or any of the Subsidiary Guarantors to comply with Section 4.19;

(4)           failure by CME or any of its Subsidiaries to comply for 30 days after notice with any covenant set forth in Article IV above (in each case, other than a failure to purchase Notes which will constitute an Event of Default under clause (2) above and other than a failure to comply with Section 4.19, which is covered by clause (3) above);

 

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(5)           failure by CME or any of its Subsidiaries to comply for 60 days after notice with any of the other agreements contained in this Indenture;

(6)           default under any charge, mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by CME or any of its Significant Subsidiaries (or the payment of which is guaranteed by CME or any of its Significant Subsidiaries), other than Indebtedness owed to CME or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created after the Issue Date, which default:

	
  

	
(a)

	
is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness (“payment default”); or

	
  

	
(b)

	
results in the acceleration of such Indebtedness prior to its maturity;

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a payment default or the maturity of which has been so accelerated, aggregates US$25 million or more;

(7)            (A) a court having jurisdiction in the premises enters a decree or order for (i) relief in respect of the Issuer, CME or any Significant Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days, (ii) appointment of a receiver, liquidator, assignee, custodian, trustee, examiner, administrator, sequestration or similar official for the Issuer, CME or any Significant Subsidiary or for all or substantially all of the property and assets of the Issuer, CME or any Significant Subsidiary on a consolidated basis and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days or (iii) the winding up or liquidation of the affairs of the Issuer, CME or any Significant Subsidiary and, in each case, such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or (B) the Issuer, CME or any Significant Subsidiary (i) commences a voluntary case (including taking any action for the purpose of winding up) under any applicable bankruptcy, insolvency, examination, court protection or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (ii) consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, examiner, administrator, sequestration or similar official of the Issuer, CME or any Significant Subsidiary or for all or substantially all of the property and assets of the Issuer, CME or any Significant Subsidiary or (iii) effects any general assignment for the benefit of creditors;

(8)           failure by CME or any Significant Subsidiary to pay final judgments aggregating in excess of €25 million (net of any amounts that a reputable and creditworthy insurance company has acknowledged liability for in writing), which judgments are not paid, discharged or stayed for a period of 60 days (the “judgment default provision”);

(9)           except as permitted by this Indenture, a Guarantee is held in one or more judicial proceedings to be unenforceable or invalid or shall cease for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of CME or a Guarantor, shall deny or disaffirm its obligations under this Indenture or the Guarantee;

 

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(10)         any security interest under the Security Documents over any Collateral having a fair market value in excess of €5 million, individually or in the aggregate, shall, at any time, cease to be in full force and effect (other than in accordance with the relevant Security Documents or this Indenture) for any reason other than satisfaction in full of all obligations of CME and its Subsidiaries under this Indenture or the release of any such security interest in accordance with the Security Documents or this Indenture or any such security interest created thereunder shall be declared invalid or unenforceable or CME shall assent that any such security is invalid or unenforceable or any pledgor disaffirms its obligations under the Security Documents and any such default continues for 20 days;

(11)         default under any other Indebtedness that is secured by the Collateral if such default results in the creditors under such Indebtedness commencing an enforcement action of their security rights over the Collateral; or

(12)         CME or any Restricted Subsidiary receives an Enforcement Notice under (and as defined in) the Existing Intercreditor Agreement.

However, a default under clauses (4) and (5) of this Section 6.1 will not constitute an Event of Default until the Trustee or the holders of 25% in principal amount of the outstanding Notes notify the Issuer of the default and such default is not cured within the time specified in clauses (4) and (5) hereof after receipt of such notice.

SECTION 6.2   Acceleration.  If an Event of Default (other than an Event of Default described in clause (7) of Section 6.1) occurs and is continuing, the Trustee by notice to the Issuer, or the holders of at least 25% in principal amount of the outstanding Notes by notice to the Issuer and the Trustee, may, and the Trustee at the request of such holders shall, declare the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Notes to be due and payable. Upon such a declaration, such principal, premium and accrued and unpaid interest will be due and payable immediately. In the event of a declaration of acceleration of the Notes because an Event of Default described in clause (6) of Section 6.1 has occurred and is continuing, the declaration of acceleration of the Notes shall be automatically annulled if the event of default or payment default triggering such Event of Default pursuant to clause (6) of Section 6.1 shall be remedied or cured by CME or a Restricted Subsidiary of CME or waived by the holders of the relevant Indebtedness within 20 days after the declaration of acceleration with respect thereto and if (a) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (b) all existing Events of Default, except nonpayment of principal, premium or interest on the Notes that became due solely because of the acceleration of the Notes, have been cured or waived. If an Event of Default described in clause (7) of Section 6.1 above occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest on all the Notes will become and be immediately due and payable without any declaration or other act on the part of the Trustee or any holders. Pursuant to the terms of the Existing Intercreditor Agreement, in the event that any indebtedness that is a beneficiary of the Existing Intercreditor Agreement and which is secured on a prior basis to the Notes delivers an Enforcement Notice, the other indebtedness benefitting from the Existing Intercreditor Agreement that is secured on a subsequent basis (including the Notes) is required to be and shall be automatically accelerated.

SECTION 6.3   Other Remedies.  Subject to the terms of the Intercreditor Agreement, if an Event of Default of which a Trust Officer of the Trustee has actual knowledge occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of or, premium, if any, interest, and Additional Amounts, if any, on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

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SECTION 6.4   The Trustee May Enforce Claims Without Possession of Securities.  All rights of action and claims under this Indenture and under any Guarantee or Intercreditor Agreement may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name and as Trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the properly incurred compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the holders of the Notes in respect of which such judgment has been recovered.

SECTION 6.5   Rights and Remedies Cumulative.  Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the holders of the Notes is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent or subsequent assertion or employment of any other appropriate right or remedy.

SECTION 6.6   Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any holder of the Notes to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Section 6.6 or by law to the Trustee or to the holders of the Notes may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the holders of the Notes, in each case in accordance with the terms of this Indenture.

SECTION 6.7   Waiver of Past Defaults.  Subject to Sections 2.10, 6.10 and 9.2, at any time after a declaration of acceleration with respect to the Notes as described in Section 6.2, the holders of a majority in principal amount of the outstanding Notes may waive all past defaults (except with respect to nonpayment of principal of, premium, if any, interest or Additional Amounts, if any) and rescind any such acceleration with respect to the Notes and its consequences if (x) rescission would not conflict with any judgment or decree of a court of competent jurisdiction and (y) all existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due solely by such declaration of acceleration, have been cured or waived. Such waiver shall not excuse a continuing Event of Default in the payment of interest, premium, if any, principal or Additional Amounts, if any, on such Note held by a non-consenting holder of the Notes, or in respect of a covenant or a provision which cannot be amended or modified without the consent of all holders of the Notes.  The Issuer shall deliver to the Trustee an Officers’ Certificate stating that the requisite percentage of holders of the Notes has consented to such waiver and attaching copies of such consents.  When a Default or Event of Default is waived, it is cured and ceases.

 

SECTION 6.8   Control by Majority.  Subject to Section 2.10, the holders of the Notes of not less than a majority in principal amount of the outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.  Subject to Section 7.1, however, the Trustee may refuse to follow any direction that conflicts with any law or this Indenture or that the Trustee determines is unduly prejudicial to the rights of another holder of the Notes, or that may involve the Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

 

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SECTION 6.9   Limitation on Suits.  Subject to Section 6.10, if an Event of Default occurs and is continuing, the Trustee shall be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any of the holders unless such holders have offered to the Trustee indemnity or security against any loss, liability or expense satisfactory to the Trustee. Except to enforce the right to receive payment of principal, premium, if any, or interest when due, no holder may pursue any remedy with respect to this Indenture or the Notes unless:

(1)           such holder has previously given the Trustee notice that an Event of Default is continuing;

(2)           holders of at least 25% in principal amount of the outstanding Notes have requested the Trustee to pursue the remedy;

(3)           such holders have offered the Trustee security or indemnity against any loss, liability or expense satisfactory to the Trustee;

(4)           the Trustee has not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity; and

(5)           the holders of a majority in principal amount of the outstanding Notes have not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such request within such 60-day period.

SECTION 6.10   Rights of holders of the Notes to Receive Payment.  Notwithstanding any other provision of this Indenture (including, without limitation, Section 8.9 hereof), subject to the CET Group Intercreditor Agreement, the right of any holder of the Notes to receive payment of principal of, premium, if any, and interest, and Additional Amounts, if any, on a Note, on or after the respective due dates expressed in such Note, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such holder of the Notes.

SECTION 6.11   Collection Suit by Trustee.  If an Event of Default in payment of principal, premium, if any, and interest and Additional Amounts, if any, specified in clause (1) or clause (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer, any Guarantor or any other obligor on the Notes for the whole amount of principal and accrued interest remaining unpaid, together with interest on overdue principal and, to the extent that payment of such interest is lawful, interest on overdue installments of interest, in each case at the rate per annum borne by the Notes and such further amount as shall be sufficient to cover the costs and expenses of collection, including the properly incurred compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.6.

 

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SECTION 6.12   Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the properly incurred compensation, expenses, disbursements, advances or any other amounts due to the Trustee under Section 7.6, its agents, appointees and counsel, accountants and experts) and the holders of the Notes allowed in any judicial proceedings relating to the Issuer or any Guarantor, their creditors or their property or any other obligor on the Notes, its creditors or its property and shall be entitled and empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same, and any Custodian in any such judicial proceedings is hereby authorized by each holder of the Notes to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the holders of the Notes, to pay to the Trustee any amount due to it for the properly incurred compensation, expenses, disbursements and advances of the Trustee, its agent and appointee and counsel, and any other amounts due to the Trustee under Section 7.6. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and appointees and counsel, and any other amounts due to the Trustee under Section 7.6 hereof out of the estate in any such proceeding shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties which the holders of the Notes may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.

SECTION 6.13   Priorities.  If the Trustee collects any money or property pursuant to this Article VI, it shall pay out the money or property in accordance with the CET Group Intercreditor Agreement or the Existing Intercreditor Agreement, as applicable and otherwise in the following order:

First:  to the Trustee, the Agents and their agents and appointees and attorneys for amounts due under Section 7.6, including (but not limited to) payment of all compensation, fees, expenses and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection;

Second:  to holders of the Notes for amounts due and unpaid on the Notes for principal, premium, if any, interest, and Additional Amounts, if any, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, interest and Additional Amounts, if any, respectively; and

Third: to the Issuer or any other obligor on the Notes, as their interests may appear, or as a court of competent jurisdiction may direct.

The Trustee, upon prior notice to the Issuer, may fix a record date and payment date for any payment to holders of the Notes pursuant to this Section 6.13; provided that the failure to give any such notice shall not affect the establishment of such record date or payment date for holders of the Notes pursuant to this Section 6.13.

SECTION 6.14   Restoration of Rights and Remedies.  If the Trustee or any holder of any Note has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such holder of the Notes, then and in every such case, subject to any determination in such proceeding, the Issuer, each Guarantor, the Trustee and the holders of the Notes shall be restored by the Issuer severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the holders of the Notes shall continue as though no such proceeding had been instituted.

 

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SECTION 6.15   Undertaking for Costs.  In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.15 does not apply to a suit by the Trustee, a suit by a holder of the Notes pursuant to Section 6.10, or a suit by a holder or holders of more than 10% in principal amount of the outstanding Notes.

SECTION 6.16   Notices of Default.  If a Default occurs and is continuing and is actually known to a Trust Officer of the Trustee, the Trustee must mail to each holder of the Notes notice of the Default within 90 days after it occurs. Except in the case of a Default in the payment of principal of, premium, if any, or interest, if any, on any Note, the Trustee may withhold notice if and so long as the Trustee in good faith determines that withholding notice is in the interests of holders of the Notes.

ARTICLE VII

TRUSTEE

SECTION 7.1   Duties of Trustee.  (a)  If an Event of Default actually known to a Trust Officer of the Trustee has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the same degree of care, skill and diligence in its exercise as a reasonably prudent person would exercise or use in the conduct of his or her own affairs.  The Trustee, however, may refuse to follow any direction that conflicts with law or this Indenture or any Intercreditor Agreement or that the Trustee  determines is unduly prejudicial to the rights of any holder of the Notes or that would involve the Trustee in personal liability.

(a)            (1)      The Trustee and the Agents shall perform only those duties as are specifically set forth herein and no others and no implied covenants or obligations shall be read into this Indenture against the Trustee or the Agents.

(2)            In the absence of bad faith on their part, the Trustee and the Agents may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions and such other documents delivered to them and conforming to the requirements of this Indenture.  However, in the case of any such certificates or opinions which by any provision hereof are required to be furnished to the Trustee or the Agents, the Trustee or the Agents, as applicable, shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture.

(b)            The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

(1)            this Subsection (c) does not limit the effect of Subsection (b) of this Section 7.1;

 

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(2)            neither the Trustee nor Agent shall be liable for any error of judgment made in good faith by a Trust Officer of such Trustee or Agent, unless it is proved that the Trustee or such Agent was negligent in ascertaining the pertinent facts; and

(3)            the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.8.

(c)            No provision of this Indenture or any Intercreditor Agreement shall require the Trustee or any Agent to expend or risk its own funds or otherwise incur any liability in the performance of any of its duties hereunder or to take or omit to take any action under this Indenture or take any action at the request or direction of holders of the Notes if it does not receive such funds or an indemnity satisfactory to it in its sole discretion against such risk, liability, loss, fee or expense which might be incurred by it in compliance with such request or direction.

(d)            Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to Section 7.1 and Section 7.2.

(e)            Neither the Trustee nor the Agents shall be liable for interest on any money received by it except as the Trustee and any Agent may agree in writing with the Issuer.  Money held in trust by the Trustee or any Agent need not be segregated from other funds except to the extent required by law.

(f)            Any provision hereof relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to this Section 7.1.

(g)            The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its rights to be indemnified, are extended to, and shall be enforceable by the Trustee in each of its capacities in which it may serve, and to each Agent, Custodian and other person employed to act hereunder.

(h)            Notwithstanding anything herein to the contrary and whether or not expressly provided in any other provision of this Indenture, it is expressly acknowledged and agreed that the Intercreditor Agreements contain provisions that may limit or otherwise affect the ability of the Trustee to take any particular action and as a result, the rights, powers and duties of the Trustee hereunder are subject to the terms of the Intercreditor Agreements and shall be construed accordingly.

SECTION 7.2   Rights of Trustee.  Subject to Section 7.1:

(a)            The Trustee and each Agent may rely conclusively on and shall be protected from acting or refraining from acting in good faith based upon any document believed by them to be genuine and to have been signed or presented by the proper person.  Neither the Trustee nor any Agent shall be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent order, approval, appraisal, bond, debenture, note, coupon, security or other paper or document, but the Trustee or its Agent, as the case may be, in its discretion, may make further inquiry or investigation into such facts or matters stated in such document and if the Trustee or its Agent as the case may be, shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer or any Guarantor, at reasonable times during normal business hours, personally or by agent or attorney.  The Trustee shall not be deemed to have notice or any knowledge of any matter (including without limitation Defaults or Events of Default) unless a Trust Officer has actual knowledge thereof or unless written notice thereof is received by the Trustee, (attention:  Agency & Trust) and such notice clearly references the Notes, the Issuer or this Indenture.

 

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(b)            Before the Trustee acts or refrains from acting pursuant to this Indenture or any Intercreditor Agreement, it may require (at the Issuer’s expense) an Officers’ Certificate or an Opinion of Counsel or both, which shall conform to the provisions of Sections 12.2 and 12.3.  Neither the Trustee nor any Agent shall be liable for any action it takes or omits to take in good faith in reliance on such certificate or opinion.

(c)            The Trustee and any Agent may act through their attorneys and agents and shall not be responsible for the misconduct or negligence of any agent (other than an agent who is an employee of the Trustee or such Agent) appointed with due care.

(d)            The Trustee shall not be liable for any action it takes or omits to take in good faith which it reasonably believes to be authorized or within its rights or powers conferred upon it by this Indenture or any Intercreditor Agreement; provided, however, that the Trustee’s conduct does not constitute willful misconduct, negligence or bad faith.

(e)            The Trustee or any Agent may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder or under any Intercreditor Agreement in good faith and in accordance with the advice or opinion of such counsel.

(f)            The Trustee may act and rely and shall be protected in acting and relying in good faith on the opinion or advice of or information obtained from any accountant, appraiser, agents or other expert or adviser, whether retained or employed by the Issuer or by the Trustee, in relation to any matter arising in the administration of the trusts hereof provided that selection of such accountant, appraiser, agent or other expert or adviser, has been made in good faith by the Trustee.

(g)            Prior to taking any action under this Indenture or under any Intercreditor Agreement, the Trustee shall be entitled to indemnification or security from the holders of the Notes satisfactory to it against any loss, liability and expense caused by taking or not taking such action.

(h)            The permissive right of the Trustee to take the actions permitted by this Indenture or any Intercreditor Agreement will not be construed as a duty to do so.

(i)            In no event, shall the Trustee be liable for any Losses arising to it from receiving any data from the Issuer, or its Authorized Person via any non-secure method of transmission or communication, such as, but without limitation, by facsimile or email.

(j)            The Issuer accepts that some methods of communication are not secure, and the Trustee shall incur no liability for receiving Instructions via any such non-secure method. The Trustee is authorized to comply with and rely upon any such notice, Instructions or other communications believed by it to have been sent by an Authorized Person.  The Issuer shall use all reasonable endeavors to ensure that Instructions transmitted to the Trustee pursuant to this Indenture are completed and correct. Any Instructions shall be conclusively deemed to be valid instructions from the Issuer to the Trustee for the purposes of this Indenture.

 

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(k)           In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder or any Intercreditor Agreement arising out of, or caused by, any change in applicable law, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes, acts of God or other events or forces beyond its control; it being understood that the Trustee shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

(l)            Except with respect to Section 4.01, the Trustee shall have no duty to inquire as to the performance of the Issuer with respect to the covenants contained in Article IV.

(m)          Delivery of reports, information and documents to the Trustee under Section 4.12 is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

(n)           The Trustee shall not be required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture or any Intercreditor Agreement.

(o)           In the event the Trustee receives inconsistent or conflicting requests and indemnity from two or more groups of Holders of Notes, each representing less than a majority in aggregate principal amount of the Notes then outstanding, pursuant to the provisions of this Indenture or any Intercreditor Agreement, the Trustee, in its sole discretion, may determine what action, if any, will be taken.

(p)           Notwithstanding any other provisions of this Indenture or any Intercreditor Agreement, in no event shall the Trustee be liable for any consequential loss or consequential damages of any kind whatsoever (including but not limited to loss of business, goodwill, opportunity or profit), unless the same shall have resulted from wilfull misconduct, bad faith or gross negligence on the part of the Trustee.

SECTION 7.3   Individual Rights of Trustee.  The Trustee or any Agent in its respective individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, its Subsidiaries, or their respective Affiliates with the same rights it would have if it were not the Trustee or an Agent.

SECTION 7.4   Trustee’s Disclaimer.  The Trustee shall not be responsible for and make no representation as to the validity, effectiveness, correctness or adequacy of this Indenture, any Intercreditor Agreement, any Security Document, the offering materials related to this Indenture or the Notes; it shall not be accountable for the Issuer’s use of the proceeds from the Notes or any money paid to the Issuer or upon the Issuer’s direction under any provision hereof; it shall not be responsible for the use or application of any money received by any Agent and it shall not be responsible for any statement or recital herein or in any Intercreditor Agreement, any Security Document of the Issuer or any Guarantor, or any document issued in connection with the sale of Notes or any statement in the Notes other than the Trustee’s certificate of authentication.

SECTION 7.5   Notice of Default.  If an Event of Default occurs and is continuing and such event is known to a Trust Officer of the Trustee, the Trustee must deliver to each holder of the Notes, as their names and addresses appear on the list of holders of the Notes described in Section 2.5, notice of the Default or Event of Default within 90 days after the occurrence thereof.  Except in the case of a Default or Event of Default in the payment of principal of, premium, if any, interest and Additional Amounts, if any, of any Note, including the failure to make payment on (i) the Change of Control Payment Date pursuant to a Change of Control Offer or (ii) the date required for payment pursuant to an Asset Disposition Offer, the Trustee may withhold the notice of Default or an Event of Default if and for so long as the Trustee in good faith reasonably believes that it is in the best interests of the holders of the Notes to withhold such notice.

 

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SECTION 7.6   Compensation and Indemnity.  The Issuer shall pay to the Trustee and Agents from time to time such compensation as the Issuer and the Trustee shall from time to time agree in writing for its acceptance of this Indenture and any Intercreditor Agreement and services hereunder and thereunder.  The Trustee’s and the Agents’ compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Issuer shall reimburse the Trustee and Agents upon request for all properly incurred disbursements, expenses and advances (including properly incurred fees and expenses of counsel or appointees) incurred or made by them in addition to the compensation for their services, except any such disbursements, expenses and advances as may be attributable to the Trustee’s or any Agent’s negligence, willful misconduct or bad faith.  Such expenses shall include the properly incurred compensation, disbursements and expenses of the Trustee’s and Agents’ accountants, experts and counsel and any taxes (other than taxes based on the income of the Trustee or franchise, doing business or other similar taxes imposed on the Trustee) or other expenses incurred by a trust created pursuant to Section 8.4 hereof.

The Issuer agrees to pay the properly incurred fees and expenses of the Trustee’s legal counsel, Allen & Overy LLP, in connection with its review, preparation and delivery of this Indenture and related documentation.

The Issuer shall indemnify each of the Trustee, any predecessor Trustee and the Agents (which, for purposes of this paragraph, include such Trustee’s and Agents’ affiliates, officers, directors, employees and agents) and in any other capacity the Trustee may serve hereunder for, and hold them harmless against, any and all loss, damage, claim, proceedings, demands, costs, expense or liability including taxes (other than taxes based on the income of the Trustee or franchise, doing business or other similar taxes imposed on the Trustee) incurred by the Trustee or an Agent without negligence or willful misconduct on its part in connection with acceptance of administration of this trust and performance of any provision under this Indenture and any Intercreditor Agreement, including the properly incurred expenses and counsel fees and expenses of defending itself against any claim of liability arising hereunder.  The Trustee and the Agents shall notify the Issuer promptly of any claim asserted against the Trustee or such Agent for which it may seek indemnity.  However, the failure by the Trustee or the Agent to so notify the Issuer shall not relieve the Issuer of its obligations hereunder.  The Issuer need not reimburse or indemnify against any loss liability or expense incurred by the Trustee through its own willful misconduct or negligence.  The Issuer shall defend the claim and the Trustee or such Agent shall cooperate in the defense (and may employ its own counsel, but at the Trustee’s expense unless the named parties in any such proceeding (including any impleaded parties) include both the Issuer and the Trustee and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them).  The Issuer need not pay for any settlement made without its written consent, which consent shall not be unreasonably withheld.

 

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To secure the Issuer’s payment obligations in this Section 7.6, the Trustee and the Agents shall have a claim prior to the Notes against all money or property held or collected by the Trustee and the Agents, in its capacity as Trustee or Agent, except money or property held in trust to pay principal or premium, if any, Additional Amounts, if any, or interest on particular Notes.

When the Trustee or an Agent incurs expenses or renders services after the occurrence of an Event of Default specified in clause (7) of Section 6.1, the expenses (including the properly incurred fees and expenses of its agents and counsel) and the compensation for the services shall be preferred over the status of the holders of the Notes in a proceeding under any Bankruptcy Law and are intended to constitute expenses of administration under any Bankruptcy Law.

The Issuer’s obligations under this Section 7.6 and any claim arising hereunder shall survive the termination of this Indenture, the resignation or removal of any Trustee or Agent, the discharge of the Issuer’s obligations pursuant to Article VIII and any rejection or termination under any Bankruptcy Law.

Save as otherwise expressly provided in this Indenture, the Trustee shall have absolute and uncontrolled discretion as to the exercise of the discretions vested in the Trustee by this Indenture or any Intercreditor Agreement but, whenever the Trustee is bound to act under this Indenture or any Intercreditor Agreement at the request or direction of the holders of the Notes, the Trustee shall nevertheless not be so bound unless first indemnified and/or secured and/or prefunded to its satisfaction against all proceedings, claims and demands to which it may render itself liable and all costs, charges, expenses and liabilities which it may incur by so doing.

Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to this Section 7.6.

SECTION 7.7   Replacement of Trustee.  The Trustee and any Agent may resign at any time by so notifying the Issuer in writing; provided, however, that this Indenture, the Notes, and the Guarantees shall remain valid notwithstanding a material conflict of interest of the Trustee.  The holders of a majority in principal amount of the outstanding Notes may remove the Trustee or any Agent by so providing not less than 30 day’s written notice to the Issuer and the Trustee or such Agent, as the case may be, in writing and may appoint a successor Trustee or Agent with the Issuer’s consent.  A resignation or removal of the Trustee or any Agent and an appointment of a successor Trustee or Agent, as the case may be, shall become effective only upon the successor Trustee’s or Agent’s acceptance of appointment, as the case may be, as provided in this Section 7.7.  The Issuer may remove the Trustee or any Agent upon no less than 30 day’s written notice if:

	
  

	
(1)

	
the Trustee or Agent, as the case may be, is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee or Agent, as the case may be, under any Bankruptcy Law;

	
  

	
(2)

	
a receiver or other public officer takes charge of the Trustee or Agent, as the case may be, or its respective property; or

	
  

	
(3)

	
the Trustee or Agent, as the case may be, becomes incapable of acting with respect to its duties hereunder.

 

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If the Trustee or an Agent resigns or is removed or if a vacancy exists in the office of Trustee or Agent for any reason, the Issuer shall notify each holder of the Notes of such event and shall promptly appoint a successor Trustee or Agent, as the case may be.  Within one year after the successor Trustee or Agent takes office, the holders of a majority in principal amount of the then outstanding Notes may, with the Issuer’s consent, appoint a successor Trustee or Agent, as the case may be, to replace the successor Trustee or Agent appointed by the Issuer.

A successor Trustee or Agent, as the case may be, shall deliver a written acceptance of its appointment to the retiring Trustee or Agent and to the Issuer.  Immediately after that, the retiring Trustee or Agent, as the case may be, shall transfer, after payment of all sums then owing to the Trustee or Agent, as the case may be, pursuant to Section 7.6, all property held by it as Trustee or Agent to the successor Trustee or Agent, subject to the Lien provided in Section 7.6, the resignation or removal of the retiring Trustee or Agent, as the case may be, shall become effective, and the successor Trustee or Agent, as the case may be, shall have all the rights, powers and duties of the Trustee or Agent under this Indenture.  A successor Trustee or Agent shall mail notice of its succession to each holder of the Notes.

The Issuer covenants that, in the event of the Trustee or any agent giving notice of its resignation pursuant to this Section 7.7, it shall use its best endeavors to procure a successor Trustee or Agent to be appointed.  If a successor Trustee or Agent does not take office within 30 days after the retiring Trustee or Agent resigns or is removed, the retiring Trustee or Agent (as the case may be), shall be entitled to appoint a successor Trustee or Agent reasonably acceptable to the Issuer (such acceptance not to be unreasonably withheld or delayed) or the retiring Trustee or Agent (as the case may be), the Issuer or the holders of at least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee or Agent.

If the Trustee, within 90 days after becoming aware that a conflict of interest exists between such Trustee’s role as a trustee and any other capacity, shall not have eliminated such conflict of interest or resigned from office, the Issuer or any holder of the Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee.

If the Trustee or any Agent after written request by any holder of the Notes who has been a holder for at least six months fails to comply with Section 7.8, such holder may petition any court of competent jurisdiction for the removal of the Trustee or Agent, as the case may be, and the appointment of a successor thereto.

Notwithstanding replacement of the Trustee or an Agent pursuant to this Section 7.7, the Issuer’s obligations under Section 7.6 shall continue for the benefit of the retiring Trustee or Agent, as the case may be, and the Issuer shall pay to any replaced or removed Trustee or Agent all amounts owed under Section 7.6 upon such replacement or removal.

SECTION 7.8   Successor Trustee by Merger, etc.  If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall, if such resulting, surviving or transferee corporation is otherwise eligible hereunder, be the successor Trustee.  In case any Notes shall have been authenticated, but not delivered, by the Trustee then in office, any successor by consolidation, merger or conversion to such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself authenticated such Notes.

 

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ARTICLE VIII

SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 8.1   Option to Effect Legal Defeasance or Covenant Defeasance.  The Issuer (hereafter in this Article VIII, the “Defeasor”) may, at any time, with respect to the Notes, elect to have either Section 8.2 or 8.3 be applied to all outstanding Notes and all obligations of the Issuer and the Guarantors with respect to the Guarantees upon compliance with the conditions set forth below in this Article VIII.

SECTION 8.2   Legal Defeasance and Discharge.  Upon the Defeasor’s exercise under Section 8.1 of the option applicable to this Section 8.2, the Issuer and the Guarantors shall be deemed to have been discharged from their obligations with respect to all outstanding Notes and the Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, such Legal Defeasance means that the Issuer and the Guarantors shall be deemed to have paid and discharged all the obligations relating to the outstanding Notes and the Guarantees and the Notes shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.6, Section 8.8 and the other Sections of this Indenture referred to below in this Section 8.2, and to have satisfied all of their other obligations under such Notes, the Guarantees and this Indenture and cured all then existing Events of Default (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of holders of outstanding Notes to receive payments in respect of the principal of, premium, if any, interest and Additional Amounts, if any, on such Notes when such payments are due or on the Redemption Date solely out of the Defeasance Trust created pursuant to this Indenture; (b) the Issuer’s obligations with respect to Notes concerning issuing temporary Notes, or, where relevant, registration of such Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust; (c) the rights, powers, trusts, duties and immunities of the Trustee, and the Issuer’s and the Guarantors’ obligations in connection therewith; and (d) this Article VIII and the obligations set forth in Section 8.6 hereof.

Subject to compliance with this Article VIII, the Defeasor may exercise its option under this Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 with respect to the Notes.

SECTION 8.3   Covenant Defeasance.  Upon the Defeasor’s exercise under Section 8.1 of the option applicable to this Section 8.3, the Issuer and the Guarantors shall be released from any obligations under the covenants contained in Article IV (other than Sections 4.1, 4.2, 4.5, 4.7, 4.16, 4.18 and clauses (1), (2) and (4) of Section 4.19) hereof with respect to the outstanding Notes and the Guarantees on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of holders of the Notes (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).  For this purpose, such Covenant Defeasance means that, (i) with respect to the outstanding Notes, the Issuer and the Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and (ii) payment on the Notes may not be accelerated because of an Event of Default specified in Sections 6.1(4) or (5) (insofar as they relate to Sections 4.2, 4.5 and 4.7) or Sections 6.1(6) or (7) or, with respect to a Significant Subsidiary only, Sections 6.1(8), (9) or (10).

 

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SECTION 8.4   Conditions to Legal or Covenant Defeasance.  In order to exercise either of the defeasance options under Section 8.2 or Section 8.3 hereof, the Defeasor must comply with the following conditions:

	
  

	
(1)

	
the Defeasor shall have irrevocably deposited in trust (the “Defeasance Trust”), with the Trustee for the benefit of the holders of the Notes, euro or euro-denominated Government Obligations in such amounts as will be sufficient for the payment of principal, premium, if any, interest and Additional Amounts, if any, on the Notes to redemption or maturity, as the case may be;

	
  

	
(2)

	
an Opinion of Counsel (subject to customary exceptions and exclusions) to the effect that holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit and defeasance and will be subject to U.S. federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred. In the case of Legal Defeasance only, such Opinion of Counsel must be based on a ruling of the Internal Revenue Service or other change in applicable U.S. federal income tax law;

	
  

	
(3)

	
an Opinion of Counsel in the Czech Republic (subject to customary exceptions and exclusions), to the effect that no Czech income tax will be payable by holders of the Notes;

	
  

	
(4)

	
no Default or Event of Default (other than to incur indebtedness used to defease the Notes under this Article VIII) shall have occurred and be continuing on the date of such deposit in the Defeasance Trust or insofar as Events of Default from bankruptcy or insolvency events are concerned, at any time in the period ending on the 91st day after the date or deposit;

	
  

	
(5)

	
such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of any material agreement or instrument (other than this Indenture) to which the Issuer or any of its Restricted Subsidiaries is a party or by which the Issuer or any of its Restricted Subsidiaries is bound;

	
  

	
(6)

	
the Defeasor shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuer with the intent of preferring the holders of the Notes over any other creditors of the Issuer or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Issuer or others;

	
  

	
(7)

	
the Defeasor shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with; and

 

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(8)

	
the Defeasor shall have delivered to the Trustee an Opinion of Counsel in the jurisdiction in which the Defeasance Trust funds are held (subject to customary exceptions) to the effect that (A) the Defeasance Trust funds will not be subject to any rights of holders of Indebtedness, including, without limitation, those arising under this Indenture and (B) after the 181st day following the deposit, the Defeasance Trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally under the laws of the jurisdiction in which the Defeasance Trust funds are held and that the Trustee has a perfected security interest in such Defeasance Trust funds for the ratable benefit of the holders of the Notes.

SECTION 8.5   Satisfaction and Discharge of Indenture.  This Indenture will be discharged and will cease to be of further effect as to all Notes issued thereunder when either (i) all such Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid and Notes whose payment money has theretofore been deposited in trust and thereafter repaid to the Issuer) have been delivered to the Trustee for cancellation or (ii) (A) all such Notes not theretofore delivered to the Trustee for cancellation have become due and payable by reason of the making of a notice of redemption or otherwise or will become due and payable within one year and the Defeasor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount of money sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation for principal, premium, if any, and accrued and unpaid interest and Additional Amounts, if any, to the date of maturity or redemption, (B) no Default with respect to this Indenture or the Notes shall have occurred and be continuing on the date of such deposit or shall occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Issuer or any of its Restricted Subsidiaries is a party or by which it is bound, (C) the Issuer and the Guarantors have paid, or caused to be paid, all sums payable, under this Indenture, and (D) the Issuer has delivered irrevocable instructions to the Trustee under this Indenture to give the notice of redemption and apply the deposited money toward the payment of such Notes at maturity or the Redemption Date, as the case may be. In addition, the Defeasor must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

SECTION 8.6   Survival of Certain Obligations.  Notwithstanding the satisfaction and discharge of this Indenture and of the Notes referred to in Section 8.1, 8.2, 8.3, 8.4 or 8.5, the respective obligations of the Issuer, the Guarantors and the Trustee under Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.9, 2.10, 2.11, 2.12, 2.13, 2.14, 4.1, 4.2, 4.5, 4.7, 4.16, 6.10, Article VII and Article VIII shall survive until the Notes are no longer outstanding, and thereafter the obligations of the Issuer, the Guarantors and the Trustee under Articles VII and VIII shall survive.  Nothing contained in this Article VIII shall abrogate any of the obligations or duties of the Trustee under this Indenture.

SECTION 8.7   Acknowledgment of Discharge by Trustee.  Subject to Section 8.10, after (i) the conditions of Section 8.4 or 8.5 have been satisfied, (ii) the Issuer has, or the Guarantors have, paid or caused to be paid all other sums payable hereunder by the Issuer and (iii) the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent referred to in clause (i) above relating to the satisfaction and discharge of this Indenture have been complied with, the Trustee upon written request shall acknowledge in writing the discharge of all obligations of the Issuer and the Guarantors under this Indenture except for those surviving obligations specified in this Article VIII.

 

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SECTION 8.8   Application of Trust Moneys.  All cash in euro deposited with the Trustee pursuant to Section 8.4 or 8.5 in respect of Notes shall be held in trust and applied by it, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent as the Trustee may determine, to the holders of the Notes of all sums due and to become due thereon for principal, premium, if any, interest, if any, and Additional Amounts, if any, but such money need not be segregated from other funds except to the extent required by law.

The Issuer and the Guarantors shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash deposited pursuant to Section 8.4 or 8.5 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the holders of outstanding Notes.

SECTION 8.9   Repayment to the Issuer; Unclaimed Money.  The Trustee and any Paying Agent shall promptly pay or return to the Issuer any cash held by them at any time that is not required for the payment of the principal of, premium, if any, interest and Additional Amounts, if any, on the Notes for which cash has been deposited pursuant to Section 8.4 or 8.5.

Any money held by the Trustee or any Paying Agent under this Article in trust for the payment of the principal of, premium, if any, interest and Additional Amounts, if any, on any Note and remaining unclaimed for one year after such principal, premium, if any, interest and Additional Amounts, if any, that has become due and payable shall be paid to the Issuer upon Company Order or if then held by the Issuer shall be discharged from such trust; and the holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuer give notice to the holders of the Notes or cause to be published notice once, in a leading newspaper having a general circulation in London (which is expected to be the Financial Times) and, if and so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such stock exchange shall so require, in a newspaper having a general circulation in The Grand Duchy of Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange at www.bourse.lu, or in the case of Definitive Notes, in addition to such publication, mail to holders of the Notes by first-class mail, postage prepaid, at their respective addresses as they appear on the registration books of the Registrar, that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification, any unclaimed balance of such money then remaining will be repaid to the Issuer.

Claims against the Issuer for the payment of principal or interest and Additional Amounts, if any, on the Notes will become void unless presentation for payment is made (where so required in this Indenture) within, in the case of principal and Additional Amounts, if any, a period of ten years, or, in the case of interest, a period of five years, in each case from the applicable original payment date therefor.

 

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SECTION 8.10   Reinstatement.  If the Trustee or Paying Agent is unable to apply any cash in accordance with Section 8.2, 8.3, 8.4 or 8.5 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.2, 8.3, 8.4 or 8.5 until such time as the Trustee or Paying Agent is permitted to apply all such cash in accordance with Section 8.2, 8.3, 8.4 or 8.5; provided, however, that if the Issuer has made any payment of interest on, premium, if any, principal and Additional Amounts, if any, of any Notes because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE IX

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.1   Without Consent of holders of the Notes.  Without the consent of any holder, the Issuer, the Guarantors and the Trustee may amend the Indenture, the Security Documents (in relation to a Technical Amendment only) and any Intercreditor Agreement (in so far as it relates to the Notes), and the Notes to:

(1)            cure any ambiguity, omission, mistake, defect or inconsistency;

(2)            provide for the assumption by a successor corporation or limited liability company of all of the Issuer’s obligations under this Indenture in the case of merger, amalgamation or consolidation or sale of all or substantially all of the Issuer’s assets;

(3)            provide for the assumption by a successor corporation or limited liability company of all of the obligations of any Guarantor under this Indenture and the Guarantees in the case of merger, amalgamation or consolidation or sale of all or substantially all of any Guarantor’s assets;

(4)            provide for uncertificated Notes in addition to or in place of certificated Notes;

(5)            add Guarantees with respect to the Notes;

(6)            secure the Notes, the Guarantees or any other Guarantee of the Notes;

(7)            add to the covenants of the Issuer, CME or its Restricted Subsidiaries for the benefit of the holders of the Notes or surrender any right or power conferred upon the Issuer, CME or its Restricted Subsidiaries;

(8)            make any change that does not adversely affect the rights of any holder of the Notes;

(9)            conform the text of this Indenture or the Notes to any provision of the “Description of the notes” included in the Offering Memorandum to the extent that such provision in the “Description of the notes” was intended to be a verbatim or substantially verbatim recitation of a provision of any of the foregoing;

 

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(10)          provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture and to make such changes as may be required to the Notes to accommodate and implement such issuance of Additional Notes;

(11)          enter into, amend or supplement any intercreditor agreement with the holder, and/or any agent in respect thereof, of any other Indebtedness permitted to be incurred under this Indenture; provided that no such intercreditor agreement shall provide that the Notes are subordinated to any such Indebtedness or subject to any payment blockage or enforcement standstill or that any Lien securing the Notes ranks behind any Lien securing such Indebtedness;

(12)          evidence and provide for the acceptance and appointment under this Indenture of a successor Trustee pursuant to the requirement thereof; or

(13)          to the extent provided for under Section 4.24; provided that, in each case, such amendment, supplement, modification, extension, renewal, restatement or replacement does not violate such covenant.

Upon the request of the Issuer, accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture or other documents, as applicable, and upon receipt by the Trustee of the documents described in Section 9.5, the Trustee shall join with the Issuer and the Guarantors in the execution of any amended or supplemental indenture or other documents, as applicable, authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations which may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental indenture or other documents, as applicable, which adversely affects its own rights, duties or immunities hereunder, thereunder or otherwise.

If and so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, the Issuer shall inform the Luxembourg Stock Exchange of any of the foregoing amendments, supplements and waivers and provide, if necessary, a supplement to the Offering Memorandum setting forth reasonable details in connection with any such amendments, supplements or waivers.

The consent of the holders is not necessary under this Indenture to approve the particular form of any proposed amendment. It is sufficient if such consent approves the substance of the proposed amendment. After an amendment under this Indenture becomes effective, the Issuer is required to mail to the holders of the Notes a notice briefly describing such amendment and shall provide a copy of such amendment to the Luxembourg Stock Exchange. However, the failure to give such notice to all the holders, or any defect in the notice, will not impair or affect the validity of the amendment.

SECTION 9.2   With Consent of Holders of Notes.  (a) The Issuer, the Guarantors and the Trustee may amend or supplement the Indenture, the Security Documents and any Intercreditor Agreement (in so far as relating to the Notes) and the Notes with the consent of the holders of a majority in principal amount of the Notes then outstanding (including without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes) and, subject to Section 9.2(b), any past default or compliance with any provisions may be waived with the consent of the holders of a majority in principal amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).

 

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(b) However, without the consent of each holder of an outstanding Note affected, no amendment may:

(1)            reduce the amount of Notes whose holders must consent to an amendment;

(2)            reduce the stated rate of or extend the stated time for payment of interest, including default interest and Additional Amounts, on any Note;

(3)            reduce the principal of or extend the Stated Maturity of any Note;

(4)            reduce the premium payable upon the redemption or repurchase of any Note or change the time at which any Note may be redeemed or repurchased as set forth in Section 3.1, 4.15 or 4.9 above or Paragraphs 7, 8, 10 and 11 of the Notes, whether through an amendment or waiver of provisions in the covenants, definitions or otherwise;

(5)            make any Note payable in money other than that stated in the Note;

(6)            impair the right of any holder to receive payment of premium, if any, Additional Amounts, if any, principal of and interest on such holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such holder’s Notes;

(7)            release any Guarantor from its obligations under the Guarantee or this Indenture, except in accordance with this Indenture;

(8)            directly or indirectly release the Collateral except as permitted by the terms of this Indenture, the Security Documents or the Intercreditor Agreements; or

(9)            make any change in the amendment provisions which require each holder’s consent or in the waiver provisions.

Upon the request of the Issuer, accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture or other document, as applicable, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the holders of the Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 9.5, the Trustee shall join with the Issuer and the Guarantors in the execution of such amended or supplemental indenture or other document, as applicable, unless such amended or supplemental indenture or other document, as applicable, adversely affects the Trustee’s own rights, duties or immunities hereunder, thereunder or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental indenture or other document, as applicable.  It shall not be necessary for the consent of the holders under this Section 9.2 to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof.

After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Issuer shall mail to the holders of the Notes (with a copy to the Trustee) a notice briefly describing the amendment, supplement or waiver. However, the failure to give such notice to all holders of the Notes, or any defect therein, will not in any way impair or affect the validity of such amended or supplemented indenture or waiver. In addition, for so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, the Issuer shall publish notice of any amendment, supplement and waiver in The Grand Duchy of Luxembourg in a daily newspaper with general circulation in The Grand Duchy of Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange at www.bourse.lu.

 

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SECTION 9.3   Revocation and Effect of Consents.  Until an amendment, supplement or waiver becomes effective, a consent to it by a holder of a Note is a continuing consent by the holder of a Note and every subsequent holder of a Note or portion of a Note that evidences the same debt as the consenting holder’s Note, even if notation of the consent is not made on any Note.  However, any such holder of a Note or subsequent holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every holder of a Note.

The Issuer may fix a record date for determining which holders of the Notes must consent to such amendment, supplement or waiver.  If the Issuer fixes a record date, the record date shall be fixed at (i) the later of 30 days prior to the first solicitation of such consent or the date of the most recent list of holders of the Notes furnished to the Trustee prior to such solicitation pursuant to Section 2.5 or (ii) such other date as the Issuer shall designate.

SECTION 9.4   Notation on or Exchange of Notes.  The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated.  The Issuer in exchange for all Notes may issue and the Trustee shall authenticate new Notes that reflect the amendment, supplement or waiver.  Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.5   Trustee to Sign Amendments, etc.  The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this Article IX; provided, however, that the Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver which adversely affects the Trustee’s own rights, duties or immunities under this Indenture or any other document entered into in connection with this Indenture.  The Trustee shall be fully protected in relying upon an Opinion of Counsel and an Officers’ Certificate each stating that the execution of any amendment, supplement or waiver authorized pursuant to this Article IX is authorized or permitted by this Indenture and constitutes the legal, valid and binding obligations of the Issuer enforceable in accordance with its terms.  Any Opinion of Counsel shall not be an expense of the Trustee.

ARTICLE X

GUARANTEES

SECTION 10.1   Guarantee.  Each of the Guarantors hereby fully, unconditionally, irrevocably, and jointly and severally Guarantees on a senior basis, as primary obligor and not merely as surety, the full and punctual payment of principal of, or interest on or in respect of the Notes when due, whether at stated maturity, by acceleration or otherwise, under the Notes and this Indenture (including the repurchase obligation of the Issuer resulting from a Change of Control Triggering Event).  Such Guarantee shall include, in addition to the amount stated above, any and all costs and expenses (including counsel fees and expenses) Incurred by the Trustee or the holders of the Notes in enforcing any rights under the Guarantees and all amounts due to the Trustee hereunder pursuant to Article VII.

 

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In the event of default in the payment of principal of or premium, if any, interest, if any, and any other payment obligations in respect of the Notes (including any obligation to repurchase the Notes), legal proceedings may be instituted directly against one or all of the Guarantors without first proceeding against the Issuer.

SECTION 10.2   Limitation on Liability.  Each Guarantee will be limited to the maximum amount that would not render the Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of foreign or state law, or as otherwise required to comply with corporate benefit, financial assistance and other laws limiting the effectiveness or validity of such Guarantees and each Guarantee does not apply to any liability of any Guarantor incorporated in the Slovak Republic having a legal form of joint-stock company (akciová spoločnost) to the extent it would result in the Guarantee constituting unlawful financial assistance provided by such Slovak Guarantor within the meaning of Section 161e of the Slovak Act No. 513/1991 Coll. The Commercial Code, as amended.

SECTION 10.3   No Subrogation.  Notwithstanding any payment or payments made by a Guarantor hereunder, no Guarantor shall be entitled to be subrogated to any of the rights of the Trustee or any holder of the Notes against the Issuer or any collateral security or guarantee or right of offset held by the Trustee or any holder of the Notes for the payment of amounts owed by the Issuer and the Guarantors pursuant to this Indenture and the Notes (“Obligations”) nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Issuer in respect of payments made by such Guarantor hereunder, until all Obligations are paid in full.  If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Trustee and the holders of the Notes, segregated from other funds of the Guarantor and shall, forthwith upon receipt by the Guarantor, be turned over to the Trustee in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Trustee, if required), to be applied against the Obligations.

SECTION 10.4   Release.  (a)  The Guarantee of each Guarantor will be automatically and unconditionally released without further action on the part of any holder of the Notes or the Trustee (and thereupon shall terminate and be discharged and be of no further force and effect) upon full and final payment and performance of all Obligations under this Indenture and the Notes.

 

(b)           So long as no Event of Default has occurred and is continuing, the Guarantee of any Guarantor other than CME (together with any rights of contribution, subrogation or other similar rights against the Guarantor) will be automatically and unconditionally released without further action on the part of any holder of the Notes or the Trustee (and thereupon shall terminate and be discharged and be of no further force and effect):

(i)             if the Guarantor is disposed of (whether by amalgamation, merger or consolidation, the sale of its Capital Stock or the sale or all or substantially all of its assets (other than by a lease)) to a Person which is not the Issuer or a Restricted Subsidiary of the Issuer in compliance with the terms of this Indenture (including Section 4.9 and Section 4.19) so long as such Guarantor is simultaneously or promptly thereafter will be unconditionally released from its obligations in respect of any other Indebtedness of the Issuer or any other Restricted Subsidiary.

 

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(c)           The Guarantees of the Guarantors will also be released upon the defeasance or discharge of the Notes as provided in Article VIII under this Indenture.

(d)           A Guarantee will be released if CME designates the Guarantor providing such Guarantee as an Unrestricted Subsidiary.

ARTICLE XI

SECURITY AND SECURITY TRUSTEE

SECTION 11.1   Collateral and Security Documents. (a) The Issuer and the Guarantors agree to secure the full and punctual payment when due and the full and punctual performance of their obligations under this Indenture and the Notes by the Collateral. The rights and obligations of the parties hereunder with respect to the Collateral are subject to the provisions of the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement.

SECTION 11.2   Release of CET Collateral.  (a) The CET Collateral shall be released, and the Security Agent and the Trustee are authorized to (and the Trustee shall and shall direct the Security Agent to) take any action required to effectuate any release of CET Collateral securing the Notes and the Guarantees, as the case may be, required by a Security Document:

 

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(1)           upon payment in full of principal, interest and all other obligations under this Indenture;

(2)           upon release of a Guarantee (with respect to the Liens securing such Guarantee granted by such Guarantor);

(3)           in connection with any disposition of CET Collateral to any Person other than CME or any of its Restricted Subsidiaries (but excluding any transaction subject to Section 4.19) if such disposition does not violate clauses (1) and (2) of Section 4.9 or Section 4.21;

(4)           in relation to an enforcement action, as provided in the CET Group Intercreditor Agreement;

(5)           in accordance with Section 4.19;

(6)           as may be permitted pursuant to Section 4.24; and

(7)           as may be permitted pursuant to Article IX.

Without the consent of the Noteholders and subject to the CET Group Intercreditor Agreement, at the request of the Issuer each of the Trustee and the Security Agent are authorized to, and the Trustee shall and shall direct the Security Agent to, execute any document and take such other action reasonably required to effect or evidence such release.

(b)           The Security Agent is authorized to allow assets to be released, or relocated, or moved without the need for a release or a consent from the Trustee or the holders of the Notes, if their value does not exceed €10.0 million or its equivalent for each financial year ending December 31, subject to the provisions of the CET Security Documents.

(c)           So long as no default is outstanding, the Issuer and the CET Guarantors may, without any release or consent by the Security Agent, the Trustee or the holders of the Notes, conduct ordinary course activities with respect to the CET Collateral consisting of (i) selling or otherwise disposing of, in any transaction or series of related transactions, any property subject to the Lien of the CET Security Documents which has become worn out, defective or obsolete or not used or useful in the business; or (ii) selling, transferring or otherwise disposing of current assets in the ordinary course of business, in each case in accordance with the CET Security Documents.

SECTION 11.3   Release of CME Collateral  (a) The CME Collateral shall be released, and the Security Agent and the Trustee are authorized to (and the Trustee shall and shall direct the Security Agent to) take any action required to effectuate any release of CME Collateral securing the Notes and the Guarantees, as the case may be, required by a CME Security Document:

 

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(1)           upon payment in full of principal, interest and all other obligations under this Indenture or discharge or defeasance thereof;

(2)           upon release of a Guarantee (with respect to the Liens securing such Guarantee granted by such Guarantor);

(3)           in connection with any disposition of CME Collateral to any Person other than CME or any of its Restricted Subsidiaries (but excluding any transaction subject to Section 4.19) if such disposition does not violate clauses (1) and (2) of Section 4.9 or Section 4.21;

(4)           in relation to an enforcement action, as provided in the Existing Intercreditor Agreement;

(5)           as may be permitted pursuant to Section 4.24;

(6)           in accordance with Section 4.19; and

(7)           as may be permitted pursuant to Article IX;

Without the consent of the Noteholders and subject to the Existing Intercreditor Agreement, at the request of the Issuer each of the Trustee and the Security Agent are authorized to, and the Trustee shall and shall direct the Security Agent to, execute any document and take such other action reasonably required to effect or evidence such release.

(b)           Each holder of Notes by accepting a Note shall be deemed to have authorized and directed each of the Trustee and the Security Agent to execute the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement. Each holder of Notes by accepting a Note consents and agrees to the terms of the Security Documents and the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement (including, without limitation, the provisions providing for foreclosure and release of Collateral) as the same may be in effect or may be amended from time to time in accordance with their terms and authorizes the Trustee and the Security Agent to perform their respective obligations and exercise their respective rights thereunder in accordance therewith and appoints the Trustee as his attorney-in-fact for such purpose, including, in the event of any liquidation, dissolution, winding up, reorganization, assignment for the benefit of creditors or marshaling of assets of any Guarantor tending towards liquidation or reorganization of the business and assets of any Guarantor, the immediate filing of a claim for the unpaid balance under its Guarantee obligations in the form required in said proceedings to cause said claim to be approved, provided that it is expressly understood that the Trustee shall not be required to exercise any such rights as attorney for any holders of Notes unless instructed to do so in accordance with Section 7.6.

(c)           Each holder by accepting a Note shall be deemed to appoint the Security Agent to act as its security trustee in connection with the Collateral, the Security Documents, the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement and authorizes the Security Agent (acting in accordance with the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement or at the direction of the Trustee) to exercise such rights, powers and discretions as are specifically delegated to the Security Agent by the terms hereof and of the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement and together with all rights, powers and discretions as are reasonably incidental thereto or necessary to give effect to the trusts hereby created, and each holder of Notes by accepting a Note shall be deemed to irrevocably authorize the Security Agent on its behalf to release any existing security being held in favor of the holders, to enter into any and each Security Document and the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement and to deal with any formalities in relation to the perfection of any security created by such Security Documents (including, inter alia, entering into such other documents as may be necessary to such perfection).

 

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(d)           Each holder, by accepting a Note, shall be deemed to have agreed to all the terms and provisions of the Security Documents.

(e)           Each holder of Notes by accepting a Note and the related Guarantees agrees that enforcement of the Collateral is subject to certain limitations to the extent and in the manner provided in each of the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement and that the order of application of any enforcement proceeds means that holders of Notes shall receive enforcement proceeds, if any, after first being applied in paying all proper costs, charges and expenses incurred by Secured Parties (as defined in each of the CET Group Intercreditor Agreement in respect of the Collateral and the Existing Intercreditor Agreement in respect of the CME Collateral) in enforcing against the Collateral or collecting the proceeds thereof. Each holder of Notes, by accepting a Note, shall be deemed to have agreed to and accepted the terms and conditions of each of the CET Group Intercreditor Agreement and the Existing Intercreditor Agreement.

SECTION 11.4   Rights of Trustee and the Paying Agent.  The Trustee and the Paying Agent may continue to make payments on the Notes and shall not be charged with the knowledge of existence of facts that prohibit the making of any such payments unless, not less than two Business Days prior to the date of such payment, a Trust Officer of the Trustee receives notice in writing satisfactory to it that payments may not be made under this Article XI.

SECTION 11.5   Parallel Debt.

	
  

	
(i)

	
For the purpose of this Section 11.5, "Principal Debt Obligations" means payment obligations of the Issuer and the Guarantors under this Indenture and the Notes.

	
  

	
(ii)

	
Without prejudice to the provisions of this Indenture, and for the purpose of ensuring and preserving the validity and continuity of the security rights granted and to be granted by the the Issuer, CME, CME NV, CME BV and CME Investments under or pursuant to the Share Pledges, the Issuer and the Guarantors hereby irrevocably and unconditionally undertake to pay to the Security Agent amounts equal to and in the currency of the Principal Debt Obligations from time to time due in accordance with and under the same terms and conditions as each of the Principal Debt Obligations (such payment undertakings and the obligations and liabilities which are the result thereof hereinafter referred to as the “Parallel Debt”).

	
  

	
(iii)

	
The Issuer and the Guarantors acknowledge that (i) for this purpose, the Parallel Debt constitutes undertakings, obligations and liabilities of the Issuer and the Guarantors to the Security Agent which are separate and independent from, and without prejudice to, the corresponding Principal Debt Obligations which the Issuer or the Guarantors have under this Indenture or under the Notes and (ii) that the Parallel Debt represents the Security Agent’s own claims (vorderingen op naam) to receive payment of the Parallel Debt, provided that the total amount of the Parallel Debt shall never exceed the total amount of the Principal Debt Obligations.

 

94

 

	
  

	
(iv)

	
Every payment of monies made by the Issuer or by the Guarantors to the Security Agent shall (conditionally upon such payment not subsequently being avoided or reduced by virtue of any provisions or enactments relating to bankruptcy, insolvency, liquidation or similar laws of general application) be in satisfaction pro tanto of the covenant by the Issuer and the Guarantors contained in Section (ii), provided that, if any such payment as is mentioned above is subsequently avoided or reduced by virtue of any provisions or enactments relating to bankruptcy, insolvency, liquidation or similar laws of general application, the Security Trustee shall be entitled to receive a corresponding amount as Parallel Debt under Section (ii) from the Issuer or the Guarantors and each of the Issuer and the Guarantors shall remain liable to satisfy such Parallel Debt and such Parallel Debt shall be deemed not to have been discharged.

	
  

	
(v)

	
Notwithstanding any of the other provisions of this Section 11.5:

	
  

	
(a)

	
the total amount due and payable as Parallel Debt under this Section 11.5 shall be decreased to the extent that, and at the same time as, the Issuer and/or the Guarantors shall have paid any amounts to reduce the outstanding Principal Debt Obligations; and

	
  

	
(b)

	
to the extent that, and at the same time as, the Issuer and/or the Guarantors shall have paid any amounts to the Security Agent under the Parallel Debt or the Security Agent otherwise shall have received monies in payment of the Parallel Debt, the total amount due and payable under the Principal Debt Obligations shall be decreased as if said amounts were received directly in payment of the Principal Debt Obligations.

	
  

	
(vi)

	
For the avoidance of doubt, in the event that the Issuer or any of the Guarantors is in default in respect of the Principal Debt Obligations, as set forth in this Indenture, each of the Issuer and the Guarantors shall, at the same time, be deemed in default in respect of its obligations under the Parallel Debt.

	
  

	
(vii)

	
The terms of this Section 11.5 shall be interpreted according to the internal laws of the Netherlands, without having regard to any choice of law principles that would apply the laws of any other jurisdiction to this Section 11.5.

	
  

	
(viii)

	
The Security Agent shall be a third party beneficiary of this Section 11.5, and the Parallel Debt may not otherwise be reduced or avoided except in accordance with this Indenture without the consent of the Security Agent or pursuant to the provisions of Article IX hereof.

 

95

 

ARTICLE XII

MISCELLANEOUS

SECTION 12.1   Notices.  Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by telecopier or first-class mail, postage prepaid, addressed as follows:

 

 if to the Issuer:

CET 21 spol. s r.o.

Kříženeckého nám. 

1078/5, Prague 5,

Postal Code 152 00,

the Czech Republic

Attention: Chief Financial Officer

Facsimile no.: (+420 ) 242 466 035

with a copy to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 

if to Central European Media Enterprises Ltd.:

Central European Media Enterprises Ltd.

c/o CME Development Corporation

52 Charles Street

London W1J 5EU

United Kingdom

Attention:  General Counsel

Facsimile no.: +44 20 7127 5801

 

with a copy to the Issuer (as specified above) and to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 

 if to Central European Media Enterprises N.V.:

Central European Media Enterprises N.V.

Schottegatweg Oost 44

Willemstad

Curacao

Netherlands Antilles.

Attention:  General Counsel

Facsimile no.: +44 20 7127 5801

 

96

 

with a copy to the Issuer (as specified above) and to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 if to CME Media Enterprises B.V.:

CME Media Enterprises B.V.

Dam 5B

1012 JS Amsterdam

The Netherlands

Attention:  Managing Director

Facsimile no.: +31 20 423 1404

with a copy to the Issuer (as specified above) and to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 

 if to CME Investments B.V.:

CME Investments B.V.

Dam 5B

1012 JS Amsterdam

The Netherlands

Attention:  Managing Director

Facsimile no.: +31 20 423 1404

with a copy to the Issuer (as specified above) and to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 

97

 

 if to CME Slovak Holdings B.V.:

CME Slovak Holdings B.V.

Dam 5B

1012 JS Amsterdam

The Netherlands

Attention:  Managing Director

Facsimile no.: +31 20 423 1404

with a copy to the Issuer (as specified above) and to:

Dewey & LeBoeuf LLP,

1301 Avenue of the Americas,

New York, NY 10019, U.S.A.

Attention:  Jeffrey Potash, Esq.

Facsimile no.: +1 212 259 6333

 if to the Paying Agent or the Transfer Agent:

Citibank, N.A., London Branch

Agency & Trust

14th Floor, Citigroup Centre

Canada Square, Canary Wharf

London E14 5LB

United Kingdom

 if to the Trustee:

Citibank, N.A., London Branch

Agency & Trust

14th Floor, Citigroup Centre

Canada Square, Canary Wharf

London E14 5LB

United Kingdom

 if to the Registrar:

Citigroup Global Markets Deutschland AG

Reuterweg 16

60323 Frankfurt

Germany

The Issuer, each Guarantor or the Trustee by written notice may designate additional or different addresses for notices.  Any notice or communication to the Issuer, the Guarantors or the Trustee shall be deemed to have been given or made as of the date so delivered if personally delivered; when receipt is acknowledged, if telecopied; and five (5) calendar days after mailing if sent by first class mail, postage prepaid (except that a notice of change of address and a notice to the Trustee shall not be deemed to have been given until actually received by the addressee).

Any notice or communication mailed to a holder of the Notes shall be mailed to such Person by first-class mail or other equivalent means at such Person’s address as it appears on the registration books of the Registrar and shall be sufficiently given to him if so mailed within the time prescribed.

Failure to mail a notice or communication to a holder of the Notes or any defect in it shall not affect its sufficiency with respect to other holders of the Notes.  If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

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Notices regarding the Notes shall be sent to the Trustee and published in a leading newspaper having a general circulation in London (which is expected to be the Financial Times).  Notices to holders of the Notes will be validly given if mailed to them at their respective addresses in the register of holders of such Notes, maintained by the Registrar.  In addition, so long as any of the Notes are listed on the Luxembourg Stock Exchange and the rules of such stock exchange so require, notices shall be published in a leading newspaper having a general circulation in The Grand Duchy of Luxembourg (which is expected to be the Luxemburger Wort) or, to the extent and in the manner permitted by such rules, posted on the official website of the Luxembourg Stock Exchange (www.bourse.lu) and, in addition, (b) in the event the Notes are in the form of Definitive Notes, sent, by first class mail, with a copy to the Trustee, to each holder of the Notes at such holder’s address as it appears on the registration books of the registrar. If and so long as such Notes are listed on any other securities exchange, notices shall also be given in accordance with any applicable requirements of such securities exchange. If and so long as any Notes are represented by one or more Global Notes and ownership of Book-Entry Interests therein are shown on the records of Euroclear, Clearstream or any successor clearing agency appointed by the Common Depositary at the request of the Issuer, notices shall be delivered to such clearing agency for communication to the owners of such Book-Entry Interests. Notices given by publication will be deemed given on the first date on which publication is made and notices given by first class mail, postage prepaid, will be deemed given five calendar days after mailing. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

SECTION 12.2   Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the Issuer or any Guarantor to the Trustee or an Agent to take any action under this Indenture or any Intercreditor Agreement, the Issuer or such Guarantor shall furnish to the Trustee at the request of the Trustee:

(1)            an Officers’ Certificate, in form and substance satisfactory to the Trustee (which shall include the statements set forth in Section 12.3), stating that, in the opinion of the signers thereof, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied or complied with; and

(2)            an Opinion of Counsel in form and substance satisfactory to the Trustee or such Agent (which shall include the statements set forth in Section 12.3) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied or complied with.

In any case where several matters are required to be certified by, or covered by an Opinion of Counsel of, any specified Person, it is not necessary that all such matters be certified by, or covered by the Opinion of Counsel of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an Opinion of Counsel with respect to some matters and one or more such Persons as to other matters, and any such Person may certify or give an Opinion of Counsel as to such matters in one or several documents.

 

Any certificate of an Officer of the Issuer or any Guarantor may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such Officer knows, or in the exercise of reasonable care should know, that such Opinion of Counsel with respect to the matters upon which his certificate is based is erroneous. Any Opinion of Counsel may be based, and may state that it is so based, insofar as it relates to factual matters, upon a certificate of, or representations by, an Officer or Officers of the Issuer or any Guarantor stating that the information with respect to such factual matters is in the possession of the Issuer or such Guarantor, as the case may be, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or representations with respect to such matters are erroneous.

 

99

 

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

SECTION 12.3   Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture or any Intercreditor Agreement shall include:

(1)            a statement that the Person making such certificate or opinion has read such covenant or condition;

(2)            a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(3)            a statement that, in the opinion of such Person, such Person has made such examination or investigation as is necessary to enable such Person to express an informed opinion as to whether or not such covenant or condition has been complied with; and

(4)            a statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with.

SECTION 12.4   Rules by Trustee, Paying Agent and Registrar.  Each of the Trustee, the Paying Agent or the Registrar may make reasonable rules for its functions.

SECTION 12.5   Legal Holidays.  If a payment date is not a Business Day, payment may be made on the next succeeding day that is a Business Day, and no interest shall accrue for the intervening period.

SECTION 12.6   Governing Law.  This Indenture and the Notes, and the rights and duties of the parties hereunder and thereunder, shall be governed by, and construed in accordance with, the laws of the State of New York, other than as provided in Section 11.5.

 

100

 

SECTION 12.7   Submission to Jurisdiction; Appointment of Agent for Service.  To the fullest extent permitted by applicable law, each of the Issuer and each Guarantor irrevocably submits to the non-exclusive jurisdiction of and venue in any court of England and Wales and any federal or state court in the Borough of Manhattan in the City of New York, County and State of New York, United States of America, in any suit or proceeding based on or arising out of or under or in connection with this Indenture, the Notes or the Guarantees, and irrevocably agrees that all claims in respect of such suit or proceeding may be determined in any such court.  Each of the Issuer and each Guarantor, to the fullest extent permitted by applicable law, irrevocably and fully waives the defense of an inconvenient forum to the maintenance of such suit or proceeding and hereby irrevocably designates and appoints (i) CT Corporation System (the “U.S. Authorized Agent”) as their authorized agent upon whom process may be served in any legal suit, action or proceeding in any U.S. Federal or New York State court in the Borough of Manhattan in the City, County and State of New York, United States of America and (ii) CME Development Corporation as their authorized agent upon whom process may be served in any legal suit, action or proceeding in any court in England and Wales (the “U.K. Authorized Agent” and, together with the U.S. Authorized Agent, the “Authorized Agents”).  CT Corporation System hereby agrees to act as the U.S. Authorized Agent, as the case may be, for the Issuer and each Guarantor, as the case may be and hereby irrevocably consents to be served with notice of service of process by delivery or by registered mail with return receipt requested to its registered office (which, as of the date hereof, is 111 Eighth Avenue, New York, New York 10011 (which service of process by registered mail shall be effective with respect to the Issuer and each Guarantor, as the case may be, so long as such return receipt is obtained, or in the refusal to sign such receipt any holder of Notes or the Trustee is able to produce evidence of attempted delivery by such means). CME Development Corporation hereby agrees to act as the U.K. Authorized Agent, as the case may be, for the Issuer and each Guarantor, as the case may be and hereby irrevocably consents to be served with notice of service of process by delivery or by registered mail with return receipt requested to its registered office (which, as of the date hereof, is 52 Charles Street, London W1J 5EU, United Kingdom, Attention:  General Counsel (which service of process by registered mail shall be effective with respect to the Issuer and each Guarantor, as the case may be, so long as such return receipt is obtained, or in the refusal to sign such receipt any holder of Notes or the Trustee is able to produce evidence of attempted delivery by such means). The Issuer and each Guarantor hereby irrevocably authorize and direct the Authorized Agents to accept such service.  The Issuer and each Guarantor further agree that service of process upon the Authorized Agents and written notice of such service to the Issuer and each Guarantor, as the case may be, as set forth above shall be deemed in every respect effective service of process upon the Issuer or each Guarantor, as the case may be, in any such suit or proceeding.  Nothing herein shall affect the right of any person to serve process in any other manner permitted by law.  The Issuer and each Guarantor agree that a final action in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other lawful manner.

The Issuer and each Guarantor hereby irrevocably waive, to the extent permitted by law, any immunity to jurisdiction to which it may otherwise be entitled (including, without limitation, immunity to pre-judgment attachment, post-judgment attachment and execution) in any legal suit, action or proceeding against it arising out of or based on this Indenture, the Notes or the transactions contemplated hereby.

The provisions of this Section 12.7 are intended to be effective upon the execution of this Indenture and the Notes without any further action by the Issuer and the Guarantors, or the Trustee and the introduction of a true copy of this Indenture into evidence shall be conclusive and final evidence as to such matters.

SECTION 12.8   No Adverse Interpretation of Other Agreements.  This Indenture may not be used to interpret another indenture, loan or debt agreement of the Issuer or any of its Subsidiaries.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

SECTION 12.9   No Personal Liability of Directors, Officers, Employees, Incorporators or Stockholders.  No director, officer, employee, incorporator or shareholder of the Issuer, or any of its Subsidiaries, as such, shall have any liability for any obligations of the Issuer or any of its Subsidiaries under the Notes, this Indenture or the Guarantees herein or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

101

 

SECTION 12.10   Currency Indemnity.  The euro is the sole currency of account and payment for all sums payable by the Issuer, or any Guarantor under this Indenture.  Any amount received or recovered in a currency other than euro (whether as a result of the enforcement of, a judgment or order of a court of any jurisdiction, in the winding-up or dissolution of the Issuer, any Subsidiary or otherwise) by a holder of Notes or the Trustee in respect of any sum expressed to be due to it from the Issuer or any Guarantor will constitute a discharge of the Issuer and the Guarantor only to the extent of the euro amount which the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not possible to make that purchase on that date, on the first date on which it is possible to do so).  If such euro amount is less than the euro amount expressed to be due to the recipient under any Note or any Guarantee, the Issuer or any Guarantor of the Notes shall indemnify the recipient against any loss sustained by it as a result.  In any event the Issuer shall indemnify the recipient against the cost of making any such purchase.

For the purposes of this Section 12.10, it will be sufficient for the holder of a Note or the Trustee to certify that it would have suffered a loss had an actual purchase of euro been made with the amount so received in that other currency on the date of receipt or recovery (or, if a purchase of euro on such date had not been practicable, on the first date on which it would have been practicable).  These indemnities constitute a separate and independent obligation from the other obligations of the Issuer and Guarantors, will give rise to a separate and independent cause of action, will apply irrespective of any waiver granted by any holder of the Notes or the Trustee and will continue in full force and effect despite any other judgment, order, claim or proof for a liquidated amount in respect of any sum due under this Indenture or any Note or any Guarantee or any other judgment or order.

SECTION 12.11   Currency Calculation.  Except as otherwise expressly set forth herein, for purposes of determining compliance with any euro-denominated restriction herein, the euro-equivalent amount for purposes hereof that is denominated in a non-euro currency shall be calculated based on the relevant currency exchange rate in effect on the date such non-euro amount is incurred or made, as the case may be.

SECTION 12.12   Successors.  All agreements of the Issuer and the Guarantors in this Indenture, the Notes and the Guarantees shall bind their respective successors.  All agreements of the Trustee in this Indenture shall bind its successor.

SECTION 12.13   Counterpart Originals.  All parties hereto may sign any number of copies of this Indenture.  Each signed copy or counterpart shall be an original, but all of them together shall represent one and the same agreement.

SECTION 12.14   Severability.  In case any one or more of the provisions in this Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

 

102

 

SECTION 12.15   Table of Contents, Headings, etc.  The Table of Contents and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

 

103

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the date first written above.

	  	
CET 21 SPOL. S R.O.

	  	
  as Issuer

	  	  	  
	  	  	  
	  	
By:

	
/s/ Petr Dvořák

	  	
Name:

	
Petr Dvořák

	  	
Title:

	
Executive Director

	  	  	  
	  	
By:

	
/s/ Oliver Meister

	  	
Name:

	
Oliver Meister

	  	
Title:

	
Executive Director

	  	  	  
	  	  	  
	  	
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.

	  	
  as Guarantor

	  	  	  
	  	  	  
	  	
By:

	
/s/ David Sach

	  	
Name:

	
David Sach

	  	
Title:

	
Chief Financial Officer

	  	  	  
	  	  	  
	  	
CENTRAL EUROPEAN MEDIA ENTERPRISES N.V.

	  	
  as Guarantor

	  
	  	  	  
	  	
By:

	
/s/ Oliver Meister

	  	
Name:   

	
Oliver Meister

	  	
Title:

	
Managing Director

	  	  	  
	  	  	  
	  	
CME MEDIA ENTERPRISES B.V.

	  	
  as Guarantor

	  	  	  
	  	  	  
	  	
By:

	
/s/ David Sturgeon

	  	
Name:

	
David Sturgeon

	  	
Title:

	
Managing Director

 

 

 

 

	  	
CME INVESTMENTS B.V.

	  	
  as Guarantor

	  	  	  
	  	  	  
	  	
By:

	
/s/ David Sturgeon

	  	
Name:

	
David Sturgeon

	  	
Title:

	
Managing Director

	  	  	  
	  	  	  
	  	
CME SLOVAK HOLDINGS B.V.

	  	
  as Guarantor

	  	  	  
	  	  	  
	  	
By:

	
/s/ David Sturgeon

	  	
Name:

	
David Sturgeon

	  	
Title:

	
Managing Director

	  	  	  
	  	  	  
	  	
MARKÍZA-SLOVAKIA, SPOL. S R.O.

	  	
  as Guarantor

	  	  	  
	  	  	  
	  	
By:

	
/s/ Radka Doehring

	  	
Name:

	
Radka Doehring

	  	
Title:      

	Attorney
	  	  	  
	  	
By:

	
/s/ Petr Dvořák

	  	
Name:   

	
Petr Dvořák

	  	
Title:     

	Attorney

 

 

 

 

	 	
Signed for and on behalf of

	 	  	  
	 	
CITIBANK, N.A., LONDON BRANCH,

	 	
  as Trustee

	 	  	  
	 	
By:

	
/s/ Azmina Keshani

	 	
Name:   

	
Azmina Keshani

	 	
Title:

	
Assistant Vice President

 

 

 

 

	
Acknowledged and agreed by

	 
	
Citibank, N.A., London Branch, as Transfer Agent and Paying Agent

	 
	  	  	 
	  	  	 
	
By:

	
/s/ Azmina Keshani

	 
	
Name:   

	
Azmina Keshani

	 
	
Title:

	
Assistant Vice President

	 

 

 

 

 

	
Acknowledged and agreed by

	 
	
Citigroup Global Markets Deutschland AG, as Registrar

	 
	  	  	 
	  	  	 
	
By:

	
/s/ S. Roos

	 
	
Name:

	
S. Roos

	 
	
Title:

	
Assistant Manager

	 
	  	  	 
	  	  	 
	
By:

	
/s/ Gabriele Bleschke

	 
	
Name:   

	
Gabriele Bleschke

	 
	  	  	 
	  	  	 
	
Dated: October 21, 2010

	 

 

 

 

 

EXHIBIT A

TO THE INDENTURE

[FORM OF FACE OF NOTE]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE ‘‘U.S. SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR  UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE ‘‘RESALE RESTRICTION TERMINATION DATE’’) THAT IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR] [IN THE CASE OR REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE U.S. SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A ‘‘QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE U.S. SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE U.S. SECURITIES ACT, (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE U.S. SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES EQUAL TO AN EQUIVALENT AMOUNT OF US$ 250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE U.S. SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

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CET 21 SPOL. S R.O.

Senior Secured Note due 2017

 

Common Code: ________

ISIN: ________

No.____

CET 21 SPOL. S R.O., a limited liability company incorporated under the laws of the Czech Republic (the “Issuer,” which term includes any successor corporation), for value received promises to pay CITIVIC NOMINEES LIMITED or registered assigns upon surrender hereof the principal sum indicated on Schedule A hereof, on November 1, 2017.

Interest Payment Dates:  May 1 and November 1, commencing May 1, 2011.

Record Dates: April 15 and October 15 immediately preceding each Interest Payment Date.

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this place.

 

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IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its duly authorized officer.

	  	
CET 21 SPOL. S R.O.,

	  	
  as Issuer

	  
	  	  	  
	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

 

 

	
This is one of the Notes referred to

	 
	
 in the above-mentioned Indenture:

	 
	  	  	 
	
CITIBANK, N.A., LONDON BRANCH,

	 
	
  as Trustee

	  	 
	  	  	 
	  	  	 
	
By:

	  	 
	
Name:

	  	 
	
Title:

	  	 
	  	  	 
	  	  	 
	
Dated: October 21, 2010

	 

 

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[FORM OF REVERSE]

CET 21 SPOL. S R.O.

Senior Secured Note due 2017

(1)            Interest.  CET 21 SPOL. S R.O., a limited liability company incorporated under the laws of the Czech Republic (the “Issuer”), promises to pay interest on the principal amount of this Note (as defined herein) at the rate of 9.0% per annum.  Interest on this Note will be payable semi-annually in arrears on May 1 and November 1, commencing on May 1, 2011.  Interest on this Note will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including the Issue Date.

The Issuer shall pay interest on overdue principal and on overdue installments of interest and on any Additional Amounts as specified in the Indenture.  Any interest paid on this Note shall be increased to the extent necessary to pay Additional Amounts as set forth herein.

(2)           Additional Amounts.  All payments under or with respect to the Notes or a Guarantee will be made free and clear of, and without withholding or deduction for or on account of, any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities related thereto) (collectively, “Taxes”) imposed or levied by or on behalf of the government of the countries in which each of the Issuer, the relevant Guarantor and, in each case, any successor thereof (each, a “Payor”) is organized, or any other jurisdiction in which the relevant Payor is organized or is otherwise resident for tax purposes, or any jurisdiction from or through which payment is made, in each case, including any political subdivision or any authority or agency therein or thereof having power to tax (each a “Relevant Taxing Jurisdiction”), unless the relevant Payor is required to withhold or deduct Taxes by law or by the official interpretation or administration thereof.

If a Payor is so required to withhold or deduct any amount for or on account of Taxes imposed by a Relevant Taxing Jurisdiction from any payment made under or with respect to the Notes or a Guarantee, as applicable, such Payor will be required to pay such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by any holder after such withholding or deduction (including any such withholding or deduction in respect of such Additional Amounts) will be equal to the amount the holder would have received if such Taxes had not been withheld or deducted; provided, however, that the foregoing obligation to pay Additional Amounts does not apply to:

	
  

	
(1)

	
any Taxes that would not have been so imposed but for the existence of any present or former connection between the relevant holder or beneficial owner of a Note (or between a fiduciary, settlor, member, partner or shareholder of, or possessor of power over the relevant holder, if the relevant holder is an estate, nominee, trust, partnership or corporation) and the Relevant Taxing Jurisdiction including, without limitation, such holder or beneficial owner being or having been a domiciliary, national or resident thereof, or being or having been present or engaged in a trade or business therein or having had a permanent establishment or fixed based therein (other than a connection resulting from the mere receipt of such payment, the ownership or holding of such Note or enforcement of rights thereunder or under the Guarantee);

 

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(2)

	
any estate, inheritance, gift, sales, excise, transfer, personal property tax or similar tax, assessment or other governmental charge;

	
  

	
(3)

	
any Taxes which are payable otherwise than by withholding from payments of (or in respect of) principal of (or premium, if any, on), or any interest on, the Notes;

	
  

	
(4)

	
any Taxes that are imposed, deducted or withheld by reason of the failure to comply by the holder or the beneficial owner of a Note with a written request from the Issuer, after reasonable notice (provided that such notice must be given at least 30 days prior to the first payment date with respect to which this item applies), (A) to provide information concerning the nationality, residence, identity or connection to the Relevant Taxing Jurisdiction of the holder or such beneficial owner or (B) to make any declaration or other similar claim or satisfy any information or reporting requirement, which, in the case of (A) or (B), is required or imposed by a statute, treaty, regulation or administrative practice of the Relevant Taxing Jurisdiction as a precondition to exemption from or refund of all or part of such Tax;

	
  

	
(5)

	
any Taxes that are required to be withheld or deducted on a payment to an individual pursuant to any European Union Council Directive regarding the taxation of savings income (including European Council Directive 2003/48/EC) or pursuant to any law implementing, or introduced in order to conform to, any such Directive;

	
  

	
(6)

	
if the payment could have been made without deduction or withholding if the beneficiary of the payment had presented (where presentation is required) the Note for payment within 30 days after the date on which such payment or such Note became due and payable or the date on which payment thereof is duly provided for, whichever is later (except to the extent that the holder would have been entitled to Additional Amounts had the Note been presented on the last day of the 30-day period);

	
  

	
(7)

	
any payment of principal of (or premium, if any, on) or interest on such Note to any holder who is a fiduciary or partnership or any Person other than the sole beneficial owner of such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of such payment would not have been entitled to the Additional Amounts had such beneficiary, settlor, member or beneficial owner been the actual holder of such Note;

	
  

	
(8)

	
a Note presented for payment (where presentation is required) by or on behalf of a holder or beneficial owner who would have reasonably been able to avoid a withholding or deduction by presenting the relevant Note to another paying agent in a member state of the European Union; or

	
  

	
(9)

	
any combination of items (1) through (8) above.

Upon request, the Issuer will provide the Trustee with documentation satisfactory to the Trustee evidencing the payment of Additional Amounts. Copies of such documentation will be made available to the holders of the Notes upon request.

 

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(3)           Method of Payment.  The Issuer shall pay interest on this Note (except defaulted interest) to the Person in whose name this Note is registered at the close of business on the Record Date for such interest.  Holders of Notes must surrender Notes to a Paying Agent to collect principal payments.  The Issuer shall pay principal and interest in euro.  Immediately available funds for the payment of the principal of, premium, if any, interest and Additional Amounts, if any, on this Note due on any interest payment date, Maturity Date, Redemption Date or other repurchase date will be made available to the Paying Agent prior to 12.00 p.m. London time on the Business Day immediately preceding each interest payment date and the Maturity Date to permit the Paying Agent to pay such funds to the holders on such respective dates.

(4)           Paying Agent.  Initially, Citibank, N.A., London Branch will act as Paying Agent.  In the event that a Paying Agent or Transfer Agent is replaced, the Issuer will publish such notice thereof if and so long as the Notes are Global Notes and are listed on the Luxembourg Stock Exchange and the rules of such stock exchange shall so require, in a newspaper having a general circulation in The Grand Duchy of Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange at www.bourse.lu, and (in the case of Definitive Notes), in addition to such publication, mail such notice by first-class mail to each holder’s registered address.  The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar for this Note.

(5)           Indenture.  The Issuer issued the Notes under an Indenture, dated as of October 21, 2010 (the “Indenture”), among the Issuer, the Guarantors, Citibank, N.A., London Branch, as Trustee, Citibank, N.A., London Branch, as Transfer Agent and Paying Agent, and Citigroup Global Markets Deutschland AG, as Registrar.  This Note is one of a duly authorized issue of Notes of the Issuer designated as its Senior Secured Notes due 2017 (the “Notes”).  The terms of the Notes include those stated in the Indenture.  Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of the Notes are referred to the Indenture for a statement of them.  The Notes are general obligations of the Issuer.  The Notes are not limited in aggregate principal amount and Additional Notes may be issued from time to time under the Indenture, in each case subject to the terms of the Indenture.  Each holder of the Notes, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be amended from time to time.

(6)           Ranking.  The Notes will be general, senior secured obligations of the Issuer.  In addition, the Notes have the benefit of the senior Guarantees of CME and certain of its Subsidiaries.

(7)           Optional Redemption.

On and after November 1, 2014, the issuer may redeem all or, from time to time, a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount) plus accrued and unpaid interest on the Notes, if any, to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods indicated below:

	
Year

	
Notes

	  	  
	
November 1, 2014 to October 31, 2015

	
104.500%

	
November 1, 2015 to October 31, 2016

	
102.250%

	
November 1, 2016 and thereafter

	
100.000%

 

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In addition, at any time prior to November 1, 2013, the Issuer may on any one or more occasions redeem up to 35% of the original principal amount of the Notes with the Net Cash Proceeds of one or more Equity Offerings subsequent to the Issue Date at a redemption price of 109.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided that (a) at least 65% of the original principal amount of the Notes remains outstanding after each such redemption; and (b) the redemption occurs within 90 days after the closing of such Equity Offering and is made in accordance with certain procedures set forth in the Indenture.

In addition, prior to November 1, 2014, the Issuer may redeem all or, from time to time, a part of the Notes upon not less than 30 nor more than 60 days’ notice at a redemption price equal to 100% of the principal amount thereof plus the Applicable Fixed Rate Premium and accrued and unpaid interest to, but not including, the applicable redemption date. Any such redemption and notice may, at the discretion of the Issuer, be subject to the satisfaction of one or more conditions precedent.

“Applicable Fixed Rate Premium” means with respect to any Note on any redemption date prior to November 1, 2014 the greater of (A) 1% of the principal amount of such Note and (B) the excess of:

	
  

	
(1)

	
the present value at such redemption date of (i) the redemption price of such Note at November 1, 2014 (such redemption price (expressed in percentage of principal amount) being set forth in the table above under the first paragraph of this section 7) (excluding accrued but unpaid interest), plus (ii) all required interest payments due on such Note to and including November 1, 2014 (excluding accrued but unpaid interest), computed upon the redemption date using a discount rate equal to the Bund Rate at such redemption date plus 50 basis points; over

 

	
  

	
(2)

	
the outstanding principal amount of such Note,

as calculated by the Issuer or on behalf of the Issuer by such Person as the Issuer shall designate.

“Bund Rate” means, with respect to any relevant date, the rate per annum equal to the equivalent yield to maturity as of such date of the Comparable German Bund Issue, assuming a price for the Comparable German Bund Issue (expressed as a percentage of its principal amount) equal to the Comparable German Bund Price for such relevant date, where:

	
  

	
(1)

	
“Comparable German Bund Issue” means the German Bundesanleihe security selected by any Reference German Bund Dealer as having a fixed maturity most nearly equal to the period from such redemption date to November 1, 2014 and that would be utilized at the time of selection and in accordance with customary financial practice, in pricing new issues of euro-denominated corporate debt securities in a principal amount approximately equal to the then outstanding principal amount of the Notes and of a maturity most nearly equal to November 1, 2014; provided, however, that, if the period from such redemption date to November 1, 2014 is less than one year, a fixed maturity of one year shall be used;

 

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(2)

	
“Comparable German Bund Price” means, with respect to any relevant date, the average of all Reference German Bund Dealer Quotations for such date (which, in any event, must include at least two such quotations), after excluding the highest and lowest such Reference German Bund Dealer Quotations, or if the Issuer obtains fewer than four such Reference German Bund Dealer Quotations, the average of all such quotations;

	
  

	
(3)

	
“Reference German Bund Dealer” means any dealer of German Bundesanleihe securities appointed by the Issuer in consultation with the Trustee; and

	
  

	
(4)

	
“Reference German Bund Dealer Quotations” means, with respect to each Reference German Bund Dealer and any relevant date, the average as determined by the Issuer of the bid and offered prices for the Comparable German Bund Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Issuer by such Reference German Bund Dealer at 3:30 p.m. Frankfurt, Germany, time on the third business day in Frankfurt preceding the relevant date.

(8)           Special Tax Redemption.  The Notes may be redeemed, at the option of the Issuer, at any time in whole but not in part, upon not less than 30 nor more than 60 days’ notice (which notice shall be irrevocable), at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest (if any) to the date of redemption (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), in the event a Payor has become or would become obligated to pay, on the next date on which any amount would be payable with respect to the Notes, any Additional Amounts, in each case as a result of:

	
  

	
(1)

	
a change in or an amendment to the laws or treaties (including any regulations, protocols or rulings promulgated thereunder) of any Relevant Taxing Jurisdiction affecting taxation; or

	
  

	
(2)

	
any change in or amendment to the official application, administration or interpretation of such laws or treaties (including the decision of any court, governmental agency or tribunal),

which change or amendment is announced or becomes effective on or after October 14, 2010 (or if later, the date on which a Payor becomes a company organized under the laws of such jurisdiction) and the Payor cannot avoid such obligation by taking commercially reasonable measures available to it.

No such notice of redemption may be given (a) earlier than 90 days prior to the earliest date on which a Payor would be obligated to pay such Additional Amounts were a payment in respect of the Notes then due and payable and (b) unless at the time such notice is given such obligation to pay such Additional Amounts remains in effect.

Before the Issuer publishes or mails notice of redemption of the Notes as described above, it shall deliver to the Trustee an Officers’ Certificate to the effect that the Issuer cannot avoid its obligation to pay Additional Amounts by taking commercially reasonable measures available to it. The Issuer shall also deliver to the Trustee an opinion of an independent tax advisor of nationally recognized standing reasonably satisfactory to the Trustee to the effect that the circumstances referred to above exist. The Trustee shall accept such opinion as sufficient existence of the satisfaction of the conditions precedent described above, which shall be conclusive and binding on the holders.

 

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(9)           Notice of Redemption.  Notice of redemption will be given at least 30 days but not more than 60 days before the Redemption Date, or Tax Redemption Date, as the case may be in accordance with Section 12.1 of the Indenture and, in the event the Notes are in the form of Definitive Notes, by mailing first-class mail, with a copy to the Trustee, postage prepaid, to each holder’s respective address as it appears on the registration books of the Registrar.

Notes in denominations of €50,000 may be redeemed only in whole.  The Trustee may select for redemption portions (equal to €50,000 and any integral multiple of €1,000 in excess thereof) of the principal of Notes that have denominations larger than €50,000.

Except as set forth in the Indenture, from and after any Redemption Date, if monies for the redemption of the Notes called for redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date, then, unless the Issuer defaults in the payment of such Redemption Price, the Notes called for redemption will cease to bear interest and Additional Amounts, if any, and the only right of the holders of such Notes will be to receive payment of the Redemption Price.

(10)          Change of Control Offer.  Upon the occurrence of a Change of Control Triggering Event, each holder of Notes will have the right to require the Issuer to repurchase all or any part (equal to €50,000, and any integral multiple of €1,000 in excess thereof) of such holder’s Notes at a purchase price per Note in cash equal to 101% of the principal amount of such Note plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant interest payment date), although no Note of €50,000 in original principal amount or less will be redeemed in part.  Holders of Notes that are subject to an offer to purchase will receive a Change of Control Offer from the Issuer prior to any related Change of Control Payment Date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below.

(11)          Limitation on Disposition of Assets.

In certain circumstances specified in the Indenture, the Issuer will be required to make an offer (an “Asset Disposition Offer”) to holders of Notes to purchase a specified amount of such Notes at an offer price in cash in an amount equal to 100% of the principal amount of such Notes plus accrued and unpaid interest and Additional Amounts, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture.  Holders of Notes that are the subject of an offer to purchase will receive an Asset Disposition Offer from the Issuer prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below.

 

(12)          Guarantee.  This Note is guaranteed by Central European Media Enterprises Ltd., Central  European Media Enterprises N.V., CME Media Enterprises B.V., CME Slovak Holdings B.V., MARKÍZA-SLOVAKIA, spol. s r.o. and CME Investments B.V. pursuant to the Indenture.

 

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(13)          Denominations; Form.  The Global Notes are in registered global form, without coupons, in minimum denominations of €50,000 and any integral multiples of €1,000 in excess thereof.

(14)          Persons Deemed Owners.  The registered holder of this Note shall be treated as the owner of it for all purposes, subject to the terms of the Indenture.

(15)          Unclaimed Funds.  If funds for the payment of principal, interest, premium or Additional Amounts remain unclaimed for one year, the Trustee and the Paying Agents will repay the funds to the Issuer at its written request.  After that, all liability of the Trustee and such Paying Agents with respect to such funds shall cease.

 

(16)          Legal Defeasance and Covenant Defeasance.  The Issuer may be discharged from its obligations under the Indenture and the Notes except for certain provisions thereof (“Legal Defeasance”), and may be discharged from its obligations to comply with certain covenants contained in the Indenture (“Covenant Defeasance”), in each case upon satisfaction of certain conditions specified in the Indenture.

(17)          Amendment; Supplement; Waiver.  Subject to certain exceptions specified in the Indenture, the Indenture or the Notes may be amended or supplemented with the consent of the holders of a majority in principal amount of such Notes then outstanding, and, subject to certain exceptions, any past default or compliance with any provisions of the Indenture or the Notes may be waived with the consent of the holders of a majority in principal amount of such Notes then outstanding.

(18)          Restrictive Covenants.  The Indenture imposes certain covenants that, among other things, limit the ability of the Issuer and CME and its Restricted Subsidiaries to incur additional Indebtedness, make certain distributions and Restricted Payments, create certain Liens, enter into certain transactions with Affiliates and third parties, make certain Asset Dispositions, and consummate certain mergers, consolidations and amalgamations or sales of all or substantially all assets.  The limitations are subject to a number of important qualifications and exceptions.  The Issuer must annually report to the Trustee on compliance with such limitations.

(19)          Successors.  When a successor assumes all the obligations of its predecessor under the Notes and the Indenture in accordance with the terms of the Indenture, the predecessor will be released from those obligations.

(20)          Defaults and Remedies.  If an Event of Default (other than an Event of Default specified in clause (7) of Section 6.1 of the Indenture) occurs and is continuing, the Trustee by notice to the Issuer or the holders of at least 25% in principal amount of the outstanding Notes may declare all the Notes to be due and payable immediately in the manner and with the effect provided in the Indenture.  Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture.  The Trustee is not obligated to enforce the Indenture or the Notes unless it has received indemnity satisfactory to it.  The Indenture permits, subject to certain limitations therein provided, holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from holders of the Notes notice of any continuing Default or Event of Default (except a Default in payment of principal, premium, interest and Additional Amounts, if any, including an accelerated payment) if and so long as the Trustee in good faith determines that withholding such notice is in their interest.

 

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(21)          Trustee Dealings with Issuer.  The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer, its Subsidiaries or their respective Affiliates as if it were not the Trustee.

(22)          No Recourse Against Others.  No director, officer, employee, or stockholder of the Issuer, any Guarantor or any Restricted Subsidiary, as such, shall have any liability for any obligations of the Issuer, any Guarantor or any Restricted Subsidiary under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each holder of the Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(23)          Authentication.  This Note shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on this Note.

(24)          Abbreviations and Defined Terms.  Customary abbreviations may be used in the name of a holder of a Note or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).  Unless otherwise defined herein, terms defined in the Indenture are used herein as defined therein.

(25)          ISINs and Common Codes.  The Issuer will cause ISINs and Common Codes to be printed on the Notes.  No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon.

(26)          Governing Law.  The Indenture and the Notes, and the rights and duties of the parties hereunder and thereunder, shall be governed by, and construed in accordance with, the laws of the State of New York, other than as provided in Section 11.5 of the Indenture.

 

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ASSIGNMENT FORM

To assign this Note fill in the form below:

I or we assign and transfer this Note to

 (Print or type assignee’s name, address and zip code)

 (Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint                          agent to transfer this Note on the books of the Issuer.

The agent may substitute another to act for him.

	  	 	 
	 	 	 
	
Date:  

	
 

	
Your Signature:  

	 	 
	  	 	 
	 	 	 

Sign exactly as your name appears on the other side of this Note.

 

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SCHEDULE A

SCHEDULE OF PRINCIPAL AMOUNT

The initial principal amount at maturity of this Note shall be €______.  The following decreases/increases in the principal amount at maturity of this Note have been made:

	
 

Date of

Decrease/

Increase

	 	
Decrease in

Principal

Amount at

Maturity

	 	
Increase in

Principal

Amount at

Maturity

	 	
Total Principal

Amount at

Maturity

Following such

Decrease/

Increase___

	 	
Notation

Made by

or on

Behalf of

Trustee

	  	 	  	 	  	 	  	 	  
	
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OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.9 or Section 4.15 of the Indenture, check the appropriate box:

Section 4.9 [      ] Section 4.15 [      ]

If you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.9 or Section 4.15 of the Indenture, state the amount: €

Date:_____________

 

Your Signature:________________

(Sign exactly as your name appears on the other side of this Note)

 

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EXHIBIT B

TO THE INDENTURE

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM

U.S. GLOBAL NOTE TO INTERNATIONAL GLOBAL NOTE

(Transfers pursuant to Section 2.7(b) of the Indenture)

CET 21 spol. s r.o.

Kříženeckého nám. 

1078/5, Prague 5,

Postal Code 152 00,

the Czech Republic

Attention: Chief Financial Officer

Citibank, N.A., London Branch

Agency & Trust

14th Floor, Citigroup Centre

Canada Square, Canary Wharf

London E14 5LB

United Kingdom

RE:           Senior Secured Notes due 2017

(the “Notes”) of CET 21 Spol. s r.o.

Reference is hereby made to the Indenture dated as of October 21, 2010 (the “Indenture”) among CET 21 spol. s r.o., as Issuer, Central European Media Enterprises Ltd., Central European Media Enterprises N.V., CME Media Enterprises B.V., CME Investments B.V., CME Slovak Holdings B.V. and MARKÍZA-SLOVAKIA, spol. s r.o., as Guarantors, Citibank, N.A., London Branch, as Trustee, Citibank, N.A., London Branch, as Transfer Agent and Paying Agent and Citigroup Global Markets Deutschland AG, as Registrar.  Capitalized terms used but not defined herein shall have the meanings given them in the Indenture.

This letter relates to €_________ (equal to €50,000 and any integral multiple of €1,000 in excess thereof) principal amount of Notes beneficially held through interests in the U.S. Global Notes (ISIN: XS0550482664; Common Code: 055048266) with Euroclear and Clearstream Banking in the name of ________(the “Transferor”), account number ________.  The Transferor hereby requests that on [INSERT DATE], the beneficial interest in the U.S. Global Note be transferred or exchanged for an interest in the International Note (ISIN: XS0550480296; Common Code: 055048029) in the same principal denomination and transfer to _________ (account no. ________).  If this is a partial transfer, a minimum amount of €50,000 and any integral multiple of €1,000 in excess thereof of the U.S. Global Note will remain outstanding.

In connection with such request and in respect of such Notes, the Transferor does hereby certify that such transfer has been effected in accordance with the transfer restrictions set forth in the Indenture and the Notes and pursuant to and in accordance with Rule 903 or 904 of Regulation S under the Securities Act, and accordingly the Transferor further certifies that:

 

B-1

 

	
                (A)

	(1)	
the offer of the Notes was not made to a person in the United States;

	
  

	
(2)

	
either (a) at the time the buy order was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States or (b)  the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on our behalf knows that the transaction was prearranged with a buyer in the United States,

	
  

	
(3)

	
no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and

	
  

	
(4)

	
the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.

OR

(B)           such transfer is being made in accordance with Rule 144 under the Securities Act.

This certificate and the statements contained herein are made for your benefit and the benefit of the Trustee and Transfer Agent.  Terms used in this certificate and not otherwise defined in the Indenture have the meanings set forth in Regulation S under the Securities Act.

	
Dated:

	 	 	  	  	 
	  	 	 	  	  	 
	  	 	 	
[Name of Transferor]

	 
	  	 	 	  	  	 
	  	 	 	  	  	 
	  	 	 	
By:

	  	 
	  	 	 	
Name:

	 
	  	 	 	
Title:

	 
	  	 	 	
Telephone No.:

	 
	  	 	 	  	  	 
	  	 	 	  	  	 
	
Please print name and address (including postal code)

	 
	 	 	 
	 	 	 

 

B-2

 

 

EXHIBIT C

TO THE INDENTURE

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM

INTERNATIONAL GLOBAL NOTE TO U.S. GLOBAL NOTE

(Transfers pursuant to Section 2.7(c) of the Indenture)

CET 21 spol. s r.o.

Kříženeckého nám. 

1078/5, Prague 5,

Postal Code 152 00,

the Czech Republic

Attention: Chief Financial Officer

Citibank, N.A., London Branch

Agency & Trust

14th Floor, Citigroup Centre

Canada Square, Canary Wharf

London E14 5LB

United Kingdom

RE:           Senior Secured Notes due 2017

(the “Notes”) of Central European Media Enterprises Ltd.

Reference is hereby made to the Indenture dated as of October 21, 2010 (the “Indenture”) among CET 21 spol. s r.o., as Issuer, Central European Media Enterprises Ltd., Central European Media Enterprises N.V., CME Media Enterprises B.V., CME Investments B.V., CME Slovak Holdings B.V. and MARKÍZA-SLOVAKIA, spol. s r.o., as Guarantors, Citibank, N.A., London Branch, as Trustee, Citibank, N.A., London Branch, as Transfer Agent and Paying Agent and Citigroup Global Markets Deutschland AG, as Registrar.  Capitalized terms used but not defined herein shall have the meanings given them in the Indenture.

This letter relates to €__________ (equal to €50,000 and any integral multiple of €1,000 in excess thereof ) principal amount of Notes beneficially held through interests in the International Global Note (ISIN: XS0550480296; Common Code: 055048029) with Euroclear and Clearstream Banking in the name of _______________ (the “Transferor”), account number _________ .  The Transferor hereby requests that on [INSERT DATE], the beneficial interest in the International Global Note be transferred or exchanged for an interest in the U.S. Global Note (ISIN: XS0550482664; Common Code: 055048266) in the same principal denomination and transfer to ______________ (account no. ________).  If this is a partial transfer, a minimum of €50,000 and any integral multiple of €1,000 in excess thereof of the International Global Note will remain outstanding.

In connection with such request, and in respect of such Notes, the Transferor does hereby certify that such Notes are being transferred in accordance with Rule 144A under the Securities Act to a transferee that the Transferor reasonably believes is purchasing the Notes for its own account or an account with respect to which the transferee exercises sole investment discretion and the transferee and any such account is a “qualified institutional buyer” within the meaning of Rule 144A, in each case in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction.

 

C-1

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Trustee and Transfer Agent.

	
Dated:

	 	 	  	  	 
	  	 	 	  	  	 
	  	 	 	
[Name of Transferor]

	 
	  	 	 	  	  	 
	  	 	 	  	  	 
	  	 	 	
By:

	  	 
	  	 	 	
Name:

	 
	  	 	 	
Title:

	 
	  	 	 	
Telephone No.:

	 
	  	 	 	  	  	 
	  	 	 	  	  	 
	
Please print name and address (including postal code)

	 
	 	 	 
	 	 	 

 

C-2

 

 

EXHIBIT D

TO THE INDENTURE

FORM OF SUPPLEMENTAL INDENTURE

This Supplemental Indenture, dated as of [__________] (this “Supplemental Indenture” or “Guarantee”), among [name of additional Guarantor] (the “Additional Guarantor”), among CET 21 spol. s r.o., (together with its successors and assigns, the “Issuer”), Central European Media Enterprises Ltd., Central European Media Enterprises N.V., CME Media Enterprises B.V., CME Investments B.V., CME Slovak Holdings B.V. and MARKÍZA-SLOVAKIA, spol. s r.o. (collectively, the “Guarantors”) and each other then existing Guarantor under the Indenture referred to below, Citibank, N.A., London Branch, as Trustee, Citibank, N.A., London Branch, as Transfer Agent and Paying Agent and Citigroup Global Markets Deutschland AG, as Registrar, under the Indenture referred to below.

 

W I T N E S S E T H:

WHEREAS, the Issuer, the Guarantors and the Trustee and the other parties thereto have heretofore executed and delivered an Indenture, dated as of October 21, 2010 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance Senior Secured Notes due 2017 of the Issuer (the “Notes”);

WHEREAS, pursuant to Section 9.1 of the Indenture, the Issuer, the Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any holder of the Notes, to add guarantees with respect to the Notes;

WHEREAS, each party hereto has duly authorized the execution and delivery of this Supplemental Indenture and has done all things necessary to make this Supplemental Indenture a valid agreement in accordance with its terms;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Additional Guarantor, the Issuer, the Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows:

 

D-1

 

ARTICLE I

Definitions

SECTION 1.1.  Defined Terms.  As used in this Supplemental Indenture, terms defined in this Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in this Guarantee shall refer to the holders of the Notes and the Trustee acting on behalf or for the benefit of such holders.  The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

[Agreement to be Bound; Guarantee

SECTION 2.1.  Agreement to be Bound.  The Additional Guarantor hereby becomes a party to this Indenture as a Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Guarantor under this Indenture.  The Additional Guarantor agrees to be bound by all of the provisions of this Indenture applicable to a Guarantor and to perform all of the obligations and agreements of a Guarantor under this Indenture.

SECTION 2.2.  Guarantee.  Subject to the terms of this Indenture, the Additional Guarantor hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with each other Guarantor, to each holder of the Notes and the Trustee, the full and punctual payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the Issuer’s Obligations under this Indenture and the Notes, including the payment of principal, premium, if any, interest and Additional Amounts, if any, on the Notes, pursuant to Article 10 of this Indenture on a senior secured basis.]

ARTICLE III

Miscellaneous

SECTION 3.1.  Notices.  All notices and other communications to the Additional Guarantor shall be given as provided in this Indenture to the Additional Guarantor, at its address set forth below, with a copy to the Issuer as provided in this Indenture for notices to the Issuer.

SECTION 3.2.  Parties.  Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm or corporation, other than the holders of the Notes and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or this Indenture or any provision herein or therein contained.

SECTION 3.3.  Governing Law.  This Supplemental Indenture shall be governed by the laws of the State of New York.

SECTION 3.4.  Severability Clause.  In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

 

D-2

 

SECTION 3.5.  Ratification of Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, this Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of this Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

SECTION 3.6  Counterparts.  The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

SECTION 3.7.  Headings.  The headings of the Articles and the sections in this Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

SECTION 3.8.  Successors.  All covenants and agreements in this Supplemental Indenture by the parties hereto shall bind their successors and assigns, whether so expressed or not.

 

D-3

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

	  	
[ADDITIONAL  GUARANTOR],

	  	  	  
	  	  	  
	  	
as a Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	 	 	 
	  	
Signed for and on behalf of,

	  	
CITIBANK, N.A., LONDON BRANCH, as Trustee

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
CET 21 SPOL. S R.O.

	  	
as Issuer

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	
Name:

	  	
 

	Title:
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
CENTRAL EUROPEAN MEDIA ENTERPRISES LTD.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
CENTRAL EUROPEAN MEDIA ENTERPRISES N.V.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:

 

 

 

 

	  	
CME MEDIA ENTERPRISES B.V.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
CME INVESTMENTS B.V.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
CME SLOVAK HOLDINGS B.V.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:
	  	  	  
	  	  	  
	  	
MARKÍZA-SLOVAKIA, SPOL S P.O.

	  	
as Guarantor

	  	  	  
	  	  	  
	  	
By:

	  
	  	 	Name:
	  	 	Title:

 

 

 

 

	 	
Signed for and on behalf of,

	 	
CITIBANK, N.A., LONDON BRANCH, as Transfer Agent and Paying Agent

	 	  	  
	 	  	  
	 	
By:

	  
	 	 	Name:
	 	 	Title:
	 	  	  
	 	  	  
	 	
Signed for and on behalf of,

	 	
CITIGROUP GLOBAL MARKETS DEUTSCHLAND AG, as Registrar

	 	  	  
	 	  	  
	 	
By:

	  
	 	 	Name:
	 	 	Title:
	 	  	  
	 	  	  
	 	
[Other Guarantors]

	 	  	  
	 	  	  
	 	
By:

	  
	 	 	Name:
	 	 	Title:ex10_40.htm

Exhibit 10.40

 

Dated 21 October, 2010

for

 

CET 21 SPOL. S R.O.

arranged by

BNP PARIBAS S.A.

J.P. MORGAN PLC

CITIGROUP GLOBAL MARKETS LIMITED

ING BANK N.V.

ČESKÁ SPOŘITELNA, A.S.

with

BNP PARIBAS S.A.

as Agent

and

BNP PARIBAS TRUST CORPORATION UK LIMITED

as Security Agent

 

____________________________________________

 

CZK 1,500,000,000

REVOLVING CREDIT FACILITYAGREEMENT

____________________________________________

Simpson Thacher & Bartlett LLP

London

 

  

  

  

 

TABLE OF CONTENTS

 

	  	  	
Page

	 	 	 
	
1.

	
Definitions and Interpretation

	
1

	 	 	 
	
2.

	
The Facility

	
29

	 	 	 
	
3.

	
Purpose

	
30

	 	 	 
	
4.

	
Conditions of Utilisation

	
30

	 	 	 
	
5.

	
Utilisation

	
31

	 	 	 
	
6.

	
Repayment

	
32

	 	 	 
	
7.

	
Mandatory Prepayment

	
32

	 	 	 
	
8.

	
Voluntary Prepayment and Cancellation

	
33

	 	 	 
	
9.

	
Interest

	
36

	 	 	 
	
10.

	
Interest Periods

	
37

	 	 	 
	
11.

	
Changes to the Calculation of Interest

	
37

	 	 	 
	
12.

	
Fees

	
38

	 	 	 
	
13.

	
Tax Gross Up and Indemnities

	
40

	 	 	 
	
14.

	
Increased Costs

	
44

	 	 	 
	
15.

	
Other Indemnities

	
45

	 	 	 
	
16.

	
Mitigation by the Lenders

	
46

	 	 	 
	
17.

	
Costs and Expenses

	
47

	 	 	 
	
18.

	
Guarantee and Indemnity

	
49

	 	 	 
	
19.

	
Representations

	
53

	 	 	 
	
20.

	
Information Undertakings

	
59

	 	 	 
	
21.

	
Financial Covenants

	
65

	 	 	 
	
22.

	
General Undertakings

	
72

	 	 	 
	
23.

	
Events of Default

	
80

	 	 	 
	
24.

	
Changes to the Lenders

	
86

	 	 	 
	
25.

	
Restriction on Debt Purchase Transactions

	
90

	 	 	 
	
26.

	
Changes to the Obligors

	
90

	 	 	 
	
27.

	
Role of the Agent and the Arrangers

	
92

	 	 	 
	
28.

	
Conduct of Business by the Finance Parties

	
98

	 	 	 
	
29.

	
Sharing Among the Finance Parties

	
98

	 	 	 
	
30.

	
Payment Mechanics

	
100

	 	 	 
	
31.

	
Set-Off

	
102

	 	 	 
	
32.

	
Notices

	
103

	 	 	 
	
33.

	
Calculations and Certificates

	
104

	 	 	 
	
34.

	
Partial Invalidity

	
105

 

  

i

  

 

	
35.

	
Remedies and Waivers

	
105

	 	 	 
	
36.

	
Amendments and Waivers

	
105

	 	 	 
	
37.

	
Confidentiality

	
106

	 	 	 
	
38.

	
Counterparts

	
110

	 	 	 
	
39.

	
Governing Law

	
111

	 	 	 
	
40.

	
Enforcement

	
111

	 	 	 
	
Schedule 1 The Original Parties

	
112

	 	 
	
Part I The Original Obligors

	
112

	 	 
	
Part II The Original Lenders

	
113

	 	 
	
Schedule 2 Conditions Precedent

	
114

	 	 
	
Part I Conditions Precedent to Initial Utilisation

	
114

	 	 
	
Part II Conditions precedent required to be delivered by an Additional Guarantor

	
121

	 	 
	
Schedule 3 Utilisation Request

	
123

	 	 
	
Schedule 4 Mandatory Cost Formulae

	
124

	 	 
	
Schedule 5 Form of Transfer Certificate

	
127

	 	 
	
Schedule 6 Form of Assignment Agreement

	
130

	 	 
	
Schedule 7 Form of Accession Letter

	
133

	 	 
	
Schedule 8 Form of Compliance Certificate

	
134

	 	 
	
Schedule 9 Existing Security

	
135

	 	 
	
Schedule 10 LMA Form of Confidentiality Undertaking

	
136

	 	 
	
Schedule 11 Timetables

	
141

 

  

ii

  

 

THIS AGREEMENT is dated 21 October, 2010 and made between:

 

	
1.

	
CET 21 spol. s r.o., a company incorporated in the Czech Republic with company number 45800456 (the “Borrower”);

 

	
2.

	
THE COMPANIES listed in Part I of Schedule 1 as original guarantors (the “Original Guarantors”);

 

	
3.

	
BNP PARIBAS S.A., J.P. MORGAN PLC, CITIGROUP GLOBAL MARKETS LIMITED, ING BANK N.V. AND ČESKÁ SPOŘITELNA, A.S. as mandated lead arrangers (whether acting individually or together the “Arrangers”);

 

	
4.

	
THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 as lenders (the “Original Lenders”);

 

	
5.

	
BNP PARIBAS S.A. as agent of the other Finance Parties (the “Agent”); and

 

	
6.

	
BNP PARIBAS TRUST CORPORATION UK LIMITED as security agent for the Secured Parties (the “Security Agent”).

 

IT IS AGREED as follows:

 

SECTION 1

 

INTERPRETATION

 

	
1.

	
DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Definitions

 

In this Agreement:

 

“2007 Indenture” means the indenture dated 16 May 2007 entered into between, among others, the Parent, the subsidiary guarantors named therein and BNY Corporate Trustee Services Limited, as Trustee.

 

“2009 Indenture” means the indenture dated 17 September 2009 entered into between, among others, the Parent, the subsidiary guarantors named therein and The Bank of New York Mellon, acting through its London Branch as trustee.

 

“Acceptable Bank” means:

 

	
  

	
(a)

	
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 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

 

	
  

	
(b)

	
any other bank or financial institution approved by the Agent.

 

“Accession Letter” means a document substantially in the form set out in Schedule 7 (Form of Accession Letter).

 

  

  

  

 

“Accounting Quarter” has the meaning given to that term in Clause 21.1 (Financial Definitions).

 

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

 

“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance with Clause 26 (Changes to the Obligors).

 

“Additional Notes” means any Notes which are permitted to be issued after the original date of this Agreement pursuant to the Notes Indenture and subject to the Finance Documents, but excluding for the avoidance of doubt the Original Notes.

 

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

 

“Assignment Agreement” means an agreement substantially in the form set out in Schedule 6 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.

 

“Auditors” means one of PricewaterhouseCoopers, Ernst & Young, KPMG or Deloitte & Touche or any other firm approved in advance by the Majority Lenders (such approval not to be unreasonably withheld or delayed).

 

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

 

“Availability Period” means the period from and including the original date of this Agreement to and including the date that is one Month prior to the Termination Date.

 

“Available Commitment” means a Lender’s Commitment minus:

 

	
  

	
(a)

	
the amount of its participation in any outstanding Loans; and

 

	
  

	
(b)

	
in relation to any proposed Utilisation, the amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date,

 

other than that Lender’s participation in any Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date.

 

“Available Facility” means the aggregate for the time being of each Lender’s Available Commitment.

 

“BMG Cash Pooling Arrangements” means the cash pooling arrangement operated by Bank Mendes Gans N.V. pursuant to an agreement dated 19 November 2007 (as amended on 10 November 2009 and from time to time) entered into between, among others, CME Media Enterprises B.V. and Bank Mendes Gans N.V.

 

“Borrower’s Business Plan” means the financial model including profit and loss, balance sheet and cashflow projections in agreed form relating to the Group together with the written business plan in agreed form and delivered to the Agent pursuant to paragraph 5(k) of Part 1 of Schedule 2.

 

  

2

  

 

“Borrower Change of Control” means the Parent ceases to directly or indirectly own at least 662⁄3 per cent. of the shares of the Borrower.

 

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

 

	
  

	
(a)

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

 

exceeds:

 

	
  

	
(b)

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

 

“Broadcasting Licences” means:

 

	
  

	
(a)

	
license no. T/41, dated August 7, 1995 (Markiza analogue, satellite, cable and digital pilot); and

 

	
  

	
(b)

	
license no. 001/1993, file no. R/060/93, dated February 9, 1993 (NOVA terrestrial),

 

in each case as amended, novated, supplemented, extended, renewed, reissued, replaced or restated.

 

“Budget” means:

 

	
  

	
(a)

	
in relation to the period beginning from the original date of this Agreement and ending on 31 December 2010, the Borrower’s Business Plan; and

 

	
  

	
(b)

	
in relation to any other period, any budget delivered by the Borrower to the Agent in respect of that period pursuant to Clause 20.4 (Budget).

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in Amsterdam, London, Paris and Prague.

 

“Cash” means, at any time, cash in hand or at bank and (in the latter case) credited to an account in the name of a member of the Group with an Acceptable Bank and to which a member of the Group is alone (or together with other members of the Group) beneficially entitled and for so long as:

 

	
  

	
(a)

	
that cash is repayable within 3 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 Obligor or any member of the Group or of any other person whatsoever or on the satisfaction of any other condition;

 

  

3

  

 

	
  

	
(c)

	
there is no Security over that cash except for Transaction Security or any Permitted Security; and

 

	
  

	
(d)

	
the cash is freely and (except as mentioned in paragraph (a) above) immediately available to be applied in repayment of the Facility.

 

“Cash Equivalent Investments” means at any time:

 

	
  

	
(a)

	
certificates of deposit or time deposits maturing within one year after the relevant date of calculation and overnight deposits, in each case issued by or with an Acceptable Bank;

 

	
  

	
(b)

	
any investment in marketable debt obligations issued or guaranteed by the government of the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State 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 the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State;

 

	
  

	
(iii)

	
which matures within one year after the relevant date of calculation; and

 

	
  

	
(iv)

	
which has a credit rating of either A-1 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 and accepted by an Acceptable Bank (or their dematerialised equivalent);

 

	
  

	
(e)

	
any investment in money market funds which (i) have a credit rating of either A-1 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, to which any member of the Group is alone (or together with other members of the Group) beneficially entitled at that time and which is not issued or guaranteed by any  member of the Group or subject to any Security (other than Security arising under the Transaction Security Documents).

 

  

4

  

 

“CET Loan Agreement” means the loan agreement dated 2 May 2005 (as amended from time to time) and made between CME Media Enterprises B.V. and the Borrower and as assigned and transferred by CME Media Enterprises B.V. to CME Investments B.V. (formerly known as CME Romania B.V.) under a novation agreement made between CME Media Enterprises B.V., CME Investments B.V. and the Borrower on 17 December 2009.

 

“Change of Control” means a Borrower Change of Control or a Parent Change of Control.

 

“Charged Property” means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.

 

“CME Group” means the Parent and its Subsidiaries for the time being (but excluding the Group).

 

“CME Group Business Plan” means the financial model including profit and loss, balance sheet and cashflow projections in agreed form relating to the CME Group (which for this purpose shall include the Group) together with the written business plan in agreed form and delivered to the Agent pursuant to paragraph 5(l) of Part 1 of Schedule 2.

 

“Commitment” means:

 

	
  

	
(a)

	
in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Part II of Schedule 1 (The Original Parties) and the amount of any other Commitment transferred to it under this Agreement; and

 

	
  

	
(b)

	
in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

 

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

 

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

 

“Confidential Information” means all information relating to the Borrower, any Obligor, the Group or the CME Group, the Finance Documents or the 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 the Facility from either:

 

	
  

	
(a)

	
any member of the Group or the CME 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 the Group or the CME 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 information that:

 

	
  

	
(i)

	
is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 37 (Confidentiality); or

 

  

5

  

 

	
  

	
(ii)

	
is identified in writing at the time of delivery as non-confidential by any member of the Group or the CME Group or any of its advisers; or

 

	
  

	
(iii)

	
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 the Group or the CME 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.

 

“Confidentiality Undertaking” means a confidentiality undertaking substantially in a recommended form of the LMA as set out in Schedule 10 (LMA Form of Confidentiality Undertaking) or in any other form agreed between the Borrower and the Agent.

 

“Core Event of Default” means any Event of Default under Clauses 23.1 (Non-payment), 23.2 (Financial covenants and other obligations), 23.6 (Insolvency), 23.7 (Insolvency Proceedings), 23.10 (Similar events elsewhere) or 23.17 (Termination, revocation or transfer of Broadcasting Licences).

 

“Czech Additional Guarantor” means an Additional Guarantor incorporated in the Czech Republic.

 

“CZK” means the lawful currency of the Czech Republic.

 

“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 an Event of Default or any event or circumstance specified in Clause 23 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

 

“Delegate” means any delegate, agent, attorney or co-trustee appointed by the Security Agent.

 

“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 Facility (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 one or more of the Parties; or

 

  

6

  

 

	
  

	
(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.

 

“Dutch Obligor” means an Obligor incorporated in the Netherlands.

 

“Erste Facility” means the facility made available under the Erste Facility Agreement.

 

“Erste Facility Agreement” means the up to CZK 3,000,000,000 facility agreement dated 21 December 2009 entered into between, amongst others, CET 21 spol. s r.o. as the borrower, Erste Group Bank AG as mandated lead arranger and Česká spořitelna a.s. as facility agent and security agent. 

 

“Erste Transaction Security” means the Security created or expressed to be created by the security documents listed in Schedule 9 (Existing Security).

 

“Event of Default” means any event or circumstance specified as such in Clause 23 (Events of Default).

 

“Existing Intercreditor Agreement” means the intercreditor agreement dated 21 July 2006 (as amended and restated from time to time, including by a deed of amendment dated on or around the original date of this Agreement) made between, among others, the Parent,  BNY Corporate Trustee Services Limited, The Bank of New York Mellon (formerly The Bank of New York) as 2007 trustee, The Bank of New York Mellon (formerly The Bank of New York) as 2008 trustee, The Bank of New York Mellon as 2009 note trustee, The Law Debenture Trust Corporation p.l.c. as 2009 security trustee, the Notes Trustee as 2010 notes trustee, BNP Paribas Trust Corporation UK Limited as 2010 security trustee and BNP Paribas S.A. as 2010 agent.

 

“Facility” means the revolving loan facility made available under this Agreement as described in Clause 2 (The Facility).

 

“Facility Office” means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement provided that a Lender shall not  nominate more than two Facility Offices unless it is necessary in order to receive payments due to it without withholding or deduction for or on account of Tax or to benefit from the provisions of Clause 13.2 (Tax Gross-up).

 

“Factoring Facility Agreement” means the framework factoring agreement (ramcova faktoringova smlouva) No. 100161 between Factoring České spořitelny, a.s. and the Borrower dated 24 March 2003, as amended or refinanced from time to time, pursuant to which individual agreements on assignment of receivables are entered into between Factoring České spořitelny a.s. as assignee and the Borrower as assignor.

 

  

7

  

 

“Fee Letter” means any letter or letters dated on or about the original date of this Agreement between the Arrangers or the Lenders (or any of them) and the Borrower (or the Agent and the Borrower or the Security Agent and the Borrower) setting out any of the fees referred to in Clause 12 (Fees).

 

“Finance Document” means this Agreement, the Intercreditor Agreement, the Existing Intercreditor Agreement, the Transaction Security Documents, any Fee Letter, the Hedging Letter, any Accession Letter, any Compliance Certificate, any Utilisation Request, and any other document designated as such by the Agent and the Borrower.

 

“Finance Party” means the Agent, the Arrangers, the Security Agent or a Lender.

 

“Financial Indebtedness” means any indebtedness for or in respect of:

 

	
  

	
(a)

	
moneys borrowed;

 

	
  

	
(b)

	
any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent;

 

	
  

	
(c)

	
any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

 

	
  

	
(d)

	
the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease;

 

	
  

	
(e)

	
receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

 

	
  

	
(f)

	
any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing;

 

	
  

	
(g)

	
any Treasury Transaction (and, when calculating the value of any Treasury Transaction, only the marked to market value shall be taken into account);

 

	
  

	
(h)

	
any counter-indemnity obligation in respect of a guarantee or other instrument issued by a bank or financial institution; and

 

	
  

	
(i)

	
the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a) to (h) above.

 

“Financial Year” has the meaning given to that term in Clause 21.1 (Financial definitions).

 

“Funding Loan” means a loan or extension of credit made by one member of the Group to another member of the Group which:

 

	
  

	
(a)

	
does not mature and is not redeemable at the option of the member of the Group making the loan or the credit extension, prior to the Termination Date;

 

	
  

	
(b)

	
is not amortising; and

 

  

8

  

 

	
  

	
(c)

	
allows for interest payments to be capitalized (and does not require payment of interest in cash) by the borrower or recipient of the loan or extension of credit prior to the Termination Date.

 

“GAAP” means generally accepted accounting principles and in particular:

 

	
  

	
(a)

	
in the United States of America, in the case of the Borrower;

 

	
  

	
(b)

	
in the Slovak Republic, in the case of each Slovak Obligor;

 

	
  

	
(c)

	
in the Netherlands, in the case of each Dutch Obligor; or

 

	
  

	
(d)

	
in the United States of America, in the case of the Parent,

 

including IFRS.

 

“Group” means the Borrower and its Subsidiaries for the time being other than any Subsidiaries in liquidation prior to the original date of this Agreement or voluntarily liquidated after the original date of this Agreement as permitted under the terms of this Agreement.

 

“Group Structure Chart” means the group structure chart in the agreed form.

 

“Guarantor” means an Original Guarantor or an Additional Guarantor.

 

“Hedging Letter” means the letter dated on or around the original date of this Agreement entered into between the Agent and the Borrower relating to the hedging arrangements that may be entered into by the Borrower.

 

“Holdco Share Pledges” means:

 

	
  

	
(a)

	
the share pledge executed by the Parent over all existing and future shares of Central European Media Enterprises N.V.; and

 

	
  

	
(b)

	
the share pledge executed by Central European Media Enterprises N.V. over all existing and future shares owned by it in CME Media Enterprises B.V.

 

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

 

“IFRS” means international accounting standards within the meaning of the Council Regulation 1606/2002/EC on the application of international accounting standards to the extent applicable to the relevant financial statements.

 

“Initial Utilisation Date” means the date of the first Utilisation.

 

“Intellectual Property” means:

 

	
  

	
(a)

	
any patents, trademarks, service marks, designs, business names, copyrights, database rights, design rights, domain names, moral rights, inventions, confidential information, knowhow and other intellectual property rights and interests (which may now or in the future subsist), whether registered or unregistered; and

 

  

9

  

 

	
  

	
(b)

	
the benefit of all applications and rights to use such assets of each Obligor and/or member of the Group (which may now or in the future subsist).

 

“Intercreditor Agreement” means the intercreditor agreement dated on or around the original date of this Agreement and made between, among others, the Parent, the Company, the Original Obligors, the Security Trustee, the Agent and the Notes Trustee (as defined therein).

 

“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 9.3 (Default interest).

 

“Inter-Group Loan” means:

 

	
  

	
(a)

	
the loan under the CET Loan Agreement;

 

	
  

	
(b)

	
the loan under the Markiza Loan Agreement;

 

	
  

	
(c)

	
any other loan or credit extension by a member of the Group to a member of the CME Group; and

 

	
  

	
(d)

	
any loan or credit extension by a member of the CME Group to a member of the Group.

 

“Inter-Group Loan Agreement” means any agreement, document or instrument evidencing an Inter-Group Loan.

 

“Intra-Group Loan” means any Financial Indebtedness owed by a member of the Group to another member of the Group.

 

“Joint Venture” means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity.

 

“Joint Venture Investment” means the aggregate of:

 

	
  

	
(a)

	
all amounts subscribed for shares in, lent to, or invested in all Joint Ventures by any member of the Group;

 

	
  

	
(b)

	
the contingent liabilities of any member of the Group under any guarantee given in respect of the liabilities of any Joint Venture; and

 

	
  

	
(c)

	
the market value of any assets transferred by any member of the Group to any Joint Venture.

 

“Legal Opinion” means any legal opinion delivered to the Agent under Clause 4.1 (Initial conditions precedent) or Clause 26 (Changes to the Obligors).

 

“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;

 

  

10

  

 

	
  

	
(b)

	
the time barring of claims under the Limitation Acts, 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 Relevant Jurisdiction; and

 

	
  

	
(d)

	
any other matters which are set out as qualifications or reservations in the Legal Opinions.

 

“Lender” means:

 

	
  

	
(a)

	
any Original Lender; and

 

	
  

	
(b)

	
any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 24 (Changes to the Lenders),

 

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

 

 “Limitation Acts” means the Limitation Act 1980 and the Foreign Limitation Periods Act 1984.

 

“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan.

 

“LMA” means the Loan Market Association.

 

“Majority Lenders” means:

 

	
  

	
(a)

	
until the Total Commitments have been reduced to zero, 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 zero and there are no Loans then outstanding, aggregated more than 662⁄3 per cent. of the Total Commitments immediately prior to the reduction); or

 

	
  

	
(b)

	
at any other time, a Lender or Lenders whose participations in the Loans then outstanding aggregate more than 662⁄3 per cent. of all the Loans then outstanding.

 

“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance with Schedule 4 (Mandatory Cost Formulae).

 

“Margin” means 4.5 per cent. per annum.

 

“Markiza” means MARKÍZA – SLOVAKIA, spol. s r.o., a limited liability company incorporated under the laws of the Slovak Republic, with its registered seat at Bratislavská l/a. Bratislava – Záhorská Bystrica 843 56, the Slovak Republic, Identification No. 31 444 873, registered in the Commercial Register maintained by the District Court of Bratislava I, Section Sro, Insert No. 12330/B.

 

“Markiza Loan Agreement” means the loan agreement dated 24 November 2008 (as amended from time to time) and entered into between CME Investments B.V. (formerly known as CME Romania B.V.) as lender and Markiza as borrower.

 

  

11

  

 

“Material Adverse Effect” means in the reasonable opinion of the Majority Lenders a material adverse effect on:

 

	
  

	
(a)

	
the business, operations, property or condition (financial or otherwise) of the Borrower, the Group and/or the CME Group taken as a whole;

 

	
  

	
(b)

	
the ability of the Obligors taken as a whole to perform their payment and other material obligations under the Finance Documents;

 

	
  

	
(c)

	
the validity or enforceability (subject to the Legal Reservations) of any Finance Document or of any of the rights or remedies of any Finance Party under any of the Finance Documents; or

 

	
  

	
(d)

	
the effectiveness or ranking (subject to the Legal Reservations) of any Transaction Security granted or purported to be granted pursuant to any of the Finance Documents.

 

“Material Company” means, at any time:

 

	
  

	
(a)

	
a wholly-owned member of the Group that holds shares in an Obligor; or

 

	
  

	
(b)

	
a Subsidiary of the Borrower which has earnings before interest, tax, depreciation and amortisation calculated on the same basis as EBITDA representing 7.5 per cent. or more of EBITDA of the Group, or has gross assets, net assets or turnover (excluding intra-group items) representing 7.5 per cent., or more of the gross assets, net assets or turnover of the Group, each calculated on a consolidated basis.

 

Compliance with the conditions set out in paragraph (b) shall be determined by reference to the most recent Compliance Certificate supplied by the Borrower and/or the latest audited consolidated financial statements of the Group and the CME Group.  However, if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the financial statements shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary (that adjustment being certified by an Officer as representing an accurate reflection of the revised EBITDA (as defined in Clause 21.1 (Financial definitions), gross assets, net assets or turnover of the Group each calculated on a consolidated basis).

 

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

 

	
  

	
(a)

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

 

	
  

	
(b)

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

 

  

12

  

 

	
  

	
(c)

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

 

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

 

“Notes” means the Original Notes and any Additional Notes.

 

“Notes Documents” means:

 

	
  

	
(a)

	
the Notes Indenture;

 

	
  

	
(b)

	
the Notes; and

 

	
  

	
(c)

	
the Intercreditor Agreement.

 

 “Notes Indenture” means the indenture dated on or about the original date of this Agreement made between, among others, the Borrower (as issuer) and the Notes Trustee pursuant to which the Original Notes are issued.

 

“Notes Trustee” means Citibank, N.A., London Branch or any institution that is acting from time to time as a trustee under the Notes Indenture.

 

“Obligor” means the Borrower, a Guarantor or any other member of the Group or the CME Group that grants Security in favour of the Secured Parties.

 

“Officer” means:

 

	
  

	
(a)

	
the chief executive officer, chief financial officer, deputy chief financial officer, chief operating officer and vice president, corporate finance of the CME Group in relation to all Obligors and members of the Group;

 

	
  

	
(b)

	
the chief executive officer, chief financial officer, chief operating officer, any director or statutory executive of a member of the Group in relation to such member of the Group; and

 

	
  

	
(c)

	
in relation to documents to be provided by Markiza, any executive or duly authorised attorney.

 

“Original Dutch Filings” means local statutory filings required to be delivered under Dutch law by the Dutch Obligors for the Financial Year ended 31 December 2009.

 

“Original Financial Statements” means:

 

	
  

	
(a)

	
in relation to the Borrower, the audited consolidated financial statements of the Group for the financial year ended 31 December 2009;

 

	
  

	
(b)

	
in relation to each of the Parent and Markiza, its audited consolidated or unconsolidated (whichever is available) financial statements for the financial year ended 31 December 2009; and

 

  

13

  

 

	
  

	
(c)

	
in relation to each other Original Obligor, its unaudited accounts for the latest financial year for which they are available.

 

“Original Obligor” means the Borrower or an Original Guarantor.

 

“Original Notes” means senior notes due 2017 of the Borrower issued pursuant to the Notes Indenture in an aggregate principal amount not exceeding EUR170,000,000.

 

“Parent” means Central European Media Enterprises Ltd., a limited company incorporated under the laws of Bermuda, Reg. No. 19574 with its registered seat at Clarendon House, 2 Church Street, Hamilton, HM11, Bermuda.

 

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

 

	
  

	
(a)

	
any “person” or “group” of related persons, other than one or more Permitted Borrower Holders, is or becomes the beneficial owner, directly or indirectly, of more than 35 per cent. of the total voting power of the Voting Stock of the Parent and the Permitted Borrower Holders beneficially own, directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Parent than such person or group;

 

	
  

	
(b)

	
the sale, lease, transfer, conveyance or other disposition (other than by way of amalgamation, merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Parent and the Restricted Subsidiaries taken as a whole to any “person” other than the Permitted Borrower Holder;

 

	
  

	
(c)

	
the first day on which a majority of the members of the Board of Directors are not Continuing Directors; or

 

	
  

	
(d)

	
the adoption by the shareholders of the Parent of a plan relating to the liquidation or dissolution of the Parent.

 

For the purposes of this definition:

 

	
  

	
(a)

	
“Restricted Subsidiary” has the meaning given to that term in the Notes Indenture;

 

	
  

	
(b)

	
“person” and “group” have the meaning they have in Sections 13(d) and 14(d) of the U.S. Exchange Act;

 

	
  

	
(c)

	
“beneficial owner” is used as defined in Rules 13d-3 and 13d-5 under the U.S. Exchange Act, except that a person shall be deemed to have “beneficial ownership” of all shares that such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time;

 

	
  

	
(d)

	
a person will be deemed to beneficially own any Voting Stock of an entity held by a parent entity, if such person is the beneficial owner, directly or indirectly, of more than 35 per cent. of the voting power of the Voting Stock of such parent entity and the Permitted Borrower Holders beneficially own, directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent entity;

 

  

14

  

 

	
  

	
(e)

	
a “Continuing Director” means any member of the Board of Directors who is a member of such board of Directors as of the original date of this Agreement or was nominated for election or was elected to such Board of Directors with the approval of the majority of Continuing Directors who were members of such Board of Directors at the time of such nomination or election;

 

	
  

	
(f)

	
“Board of Directors” means the board of directors of the Parent or any committee thereof duly authorized to act on behalf of such board;

 

	
  

	
(g)

	
“Voting Stock” of a person means all classes of Capital Stock of such person then outstanding and normally entitled to vote in the election of members of the board of directors or a management board, directors or persons acting in a similar capacity on similar corporate bodies;

 

	
  

	
(h)

	
“Capital Stock” of a person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such corporation (including any preferred stock but excluding any debt securities convertible into such equity of such corporation.

 

“Parent Convertible Notes” means the 3.50 per cent. senior convertible notes due 2013 originally issued by the Parent on 10 March 2008.

 

“Parent Fixed Rate Notes” means the EUR 440,000,000 fixed rate notes due 2016 originally issued by the Parent on 17 September 2009 and 29 September 2009.

 

“Parent Floating Rate Notes” means the EUR150,000,000 floating rate notes due 2014 issued originally by the Parent on 16 May 2007.

 

“Parent Note Documents” means the Parent Notes and the Parent Note Instruments and any other documents entered into pursuant to any of them.

 

“Parent Note Instrument” means the instrument pursuant to which the Parent Notes are, or are to be, constituted.

 

“Parent Notes” means:

 

	
  

	
(a)

	
the Parent Fixed Rate Notes;

 

	
  

	
(b)

	
the Parent Convertible Notes; and

 

	
  

	
(c)

	
the Parent Floating Rate Notes.

 

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

 

“Permitted Acquisition” means:

 

	
  

	
(a)

	
an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of:

 

	
  

	
(i)

	
under paragraph (b)(ii) of Clause 22.10 (Disposals); and

 

  

15

  

 

	
  

	
(ii)

	
provided that such asset is not subject to any liabilities (other than any liabilities that would constitute Permitted Financial Indebtedness or Financial Indebtedness permitted under paragraph (b)(i) of Clause 22.14 (Financial Indebtedness) if owed by a member of the Group);

 

	
  

	
(b)

	
an acquisition of shares or securities pursuant to a Permitted Share Issue;

 

	
  

	
(c)

	
an acquisition of securities which are Cash Equivalent Investments;

 

	
  

	
(d)

	
acquisition of shares in a Joint Venture to the extent permitted by Clause 22.7 (Joint Ventures).

 

“Permitted Borrower Holders” means:

 

	
  

	
(a)

	
the Permitted Parent Holders;

 

	
  

	
(b)

	
any Obligor;

 

	
  

	
(c)

	
each Subsidiary of the Parent or of a Permitted Parent Holder; and

 

	
  

	
(d)

	
any Affiliates of any of the persons referred to in paragraph (a) to (c) above.

 

“Permitted Disposal” means any sale, lease, licence, transfer or other disposal which, except in the case of paragraph (b), is on arm’s length terms:

 

	
  

	
(a)

	
of trading stock, including licences for content, formats and other similar or relates rights or cash, made by any member of the Group in the ordinary course of business of the disposing entity on normal commercial terms;

 

	
  

	
(b)

	
of assets (other than shares, businesses or Intellectual Property) in exchange for other assets comparable or superior as to type, value and quality;

 

	
  

	
(c)

	
of receivables pursuant to the Factoring Facility Agreement;

 

	
  

	
(d)

	
of obsolete or redundant vehicles, plant and equipment for Cash;

 

	
  

	
(e)

	
of Cash or Cash Equivalent Investments not otherwise required to be applied or prohibited by this Agreement or in exchange for other Cash Equivalent Investments;

 

	
  

	
(f)

	
constituted by a licence of intellectual property rights permitted by Clause 22.16 (Intellectual Property);

 

	
  

	
(g)

	
to a Joint Venture, to the extent permitted by Clause 22.7 (Joint ventures); or

 

	
  

	
(h)

	
arising as a result of any Permitted Security.

 

“Permitted Financial Indebtedness” means Financial Indebtedness:

 

	
  

	
(a)

	
arising under the Finance Documents;

 

	
  

	
(b)

	
arising under the Notes Documents subject, in the case of any Additional Notes, to paragraph (g) below;

 

  

16

  

 

	
  

	
(c)

	
arising under any Treasury Transactions;

 

	
  

	
(d)

	
arising under a Permitted Loan, a Permitted Guarantee or a guarantee permitted under paragraph (a) of Clause 22.13 (No guarantees or indemnities);

 

	
  

	
(e)

	
of any person acquired by a member of the Group after the original date of this Agreement which is incurred under arrangements in existence at the date of acquisition, but not incurred or increased or having its maturity date extended in contemplation of, or since, that acquisition, and outstanding only for a period of six months following the date of acquisition;

 

	
  

	
(f)

	
arising under the Factoring Facility Agreement;

 

	
  

	
(g)

	
arising under the issue of Additional Notes in an amount which does not exceed EUR20,000,000 (or its equivalent) at any time;

 

	
  

	
(h)

	
of a member of the Group arising under any netting, set-off or cash-pooling arrangements (including the BMG Cash Pooling Arrangements), in an amount not exceeding EUR10,000,000 (or its equivalent) in aggregate at any time; and

 

	
  

	
(i)

	
prior to the Initial Utilisation Date, arising under the Erste Facility.

 

“Permitted Guarantee” means:

 

	
  

	
(a)

	
the endorsement of negotiable instruments in the ordinary course of trade;

 

	
  

	
(b)

	
any guarantee, performance or similar bond or other obligation guaranteeing performance by any member of the Group under any contract (other than a contract that is or evidences Financial Indebtedness) entered into in ordinary course of business of the respective member of the Group as conducted on the original date of this Agreement;

 

	
  

	
(c)

	
any guarantee of a Joint Venture to the extent permitted by Clause 22.7 (Joint ventures);

 

	
  

	
(d)

	
any guarantee permitted under Clause 22.14 (Financial Indebtedness);

 

	
  

	
(e)

	
any guarantee given in respect of the netting or set-off, netting or cash pooling arrangements permitted pursuant to paragraph (b) of the definition of Permitted Security;

 

	
  

	
(f)

	
any guarantee given by a member of the Group in respect of or to secure obligations pursuant to any programming, production, distribution, format or other intellectual or similar rights or capital equipment or other assets used in the ordinary course of its business as conducted on the original date of this Agreement and not to exceed CZK200,000,000 (or its equivalent in other currencies) in aggregate for the Group at any time;

 

	
  

	
(g)

	
any guarantee given to any relevant tax authority in respect of excise taxes, export duties or other such taxes, charges, duties or imposts payable by a member of the Group in the ordinary course of its business as conducted on the original date of this Agreement; or

 

  

17

  

 

	
  

	
(h)

	
any indemnity given in the ordinary course of the documentation of an acquisition or disposal transaction which is a Permitted Acquisition or Permitted Disposal which indemnity is in a customary form and subject to customary limitations.

 

“Permitted Loan” means:

 

	
  

	
(a)

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

 

	
  

	
(b)

	
a loan made to a Joint Venture to the extent permitted under Clause 22.7 (Joint ventures);

 

	
  

	
(c)

	
arising under any Inter-Group Loan (other than the CET Loan Agreement and the Markiza Loan Agreement) provided that if the amount thereof exceeds in aggregate EUR4,000,000 (or its equivalent), the creditor of such Inter-Group Loan shall forthwith grant Security over all its rights in respect thereof in favour of the Security Agent on behalf of the Secured Parties on terms similar in all material respects to the English law assignment by CME Investments B.V. of its rights under the CET Loan Agreement and granted on or about the original date hereof to the Security Agent; and

 

	
  

	
(d)

	
the loans under the CET Loan Agreement and the Markiza Loan Agreement;

 

	
  

	
(e)

	
a loan or extension of credit by a member of the Group to another member of the Group provided that if the amount thereof exceeds in aggregate EUR4,000,000 (or its equivalent):

 

	
  

	
(i)

	
it shall be a Funding Loan and the borrower or recipient of such Funding Loan shall be a Guarantor; or

 

	
  

	
(ii)

	
the creditor of such loan or credit extension shall grant Security forthwith over all its rights in respect thereof in favour of the Security Agent on behalf of the Secured Parties on terms similar in all material respects to the English law assignment by CME Investments B.V. of its rights under the CET Loan Agreement and granted on or about the original date hereof to the Security Agent,

 

	
  

	
(f)

	
a loan made by a member of the Group to an employee or director of any member of the Group if the amount of that loan when aggregated with the amount of all loans to employees and directors by members of the Group does not exceed CZK 50,000,000 (or its equivalent) at any time.

 

“Permitted Parent Holders” means:

 

	
  

	
(a)

	
each beneficial owner of the Parent’s Class B Common Stock as of the original date of this Agreement;

 

	
  

	
(b)

	
family members of any beneficial holder of the Parent’s Class B Common Stock as of the original date of this Agreement;

 

	
  

	
(c)

	
trusts, the only beneficiaries of which are persons or entities described in (a) and (b) above; and

 

  

18

  

 

	
  

	
(d)

	
partnerships, corporations, or limited liability companies which are controlled by the persons or entities described in (a) or (b) above.

 

“Permitted Security” means:

 

	
  

	
(a)

	
any lien arising by operation of law and in the ordinary course of business and not as a result of any default or omission by any member of the Group;

 

	
  

	
(b)

	
any Security or Quasi-Security arising under any netting, set-off or cash-pooling arrangements (including the BMG Cash Pooling Arrangements) entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of members of the Group and of the CME Group but only so long as such Security or Quasi-Security does not secure Financial Indebtedness under such arrangements in an amount in excess of EUR10,000,000 (or its equivalent) at any one time;

 

	
  

	
(c)

	
any payment or close out netting or set-off arrangement pursuant to any Treasury Transaction or foreign exchange transaction entered into by a member of the Group which constitutes Permitted Financial Indebtedness, excluding any Security or Quasi-Security under a credit support arrangement;

 

	
  

	
(d)

	
any Security or Quasi-Security over or affecting any asset acquired by a member of the Group after the original date of this Agreement if:

 

	
  

	
(i)

	
the Security or Quasi-Security was not created in contemplation of the acquisition of that asset by a member of the Group;

 

	
  

	
(ii)

	
the principal amount secured has not been increased in contemplation of or since the acquisition of that asset by a member of the Group; and

 

	
  

	
(iii)

	
the Security or Quasi-Security is removed or discharged within six months of the date of acquisition of such asset;

 

	
  

	
(e)

	
any Security or Quasi-Security over or affecting any asset of any company which becomes a member of the Group after the original date of this Agreement, where the Security or Quasi-Security is created prior to the date on which that company becomes a member of the Group if:

 

	
  

	
(i)

	
the Security or Quasi-Security was not created in contemplation of the acquisition of that company;

 

	
  

	
(ii)

	
the principal amount secured has not increased in contemplation of or since the acquisition of that company; and

 

	
  

	
(iii)

	
the Security or Quasi-Security is removed or discharged within six months of that company becoming a member of the Group;

 

	
  

	
(f)

	
any Security or Quasi-Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to a member of the Group in the ordinary course of business and on the supplier’s standard or usual terms and not arising as a result of any default or omission by any member of the Group;

 

  

19

  

 

	
  

	
(g)

	
any Quasi-Security arising as a result of a disposal which is a Permitted Disposal or is permitted under Clause 22.10 (Disposals);

 

	
  

	
(h)

	
any Security or Quasi-Security arising as a consequence of any finance or capital lease permitted pursuant to paragraph (b)(ii) of the Clause 22.14 (Financial Indebtedness);

 

	
  

	
(i)

	
prior to the Initial Utilisation Date, the Erste Transaction Security;

 

	
  

	
(j)

	
any Transaction Security; or

 

	
  

	
(k)

	
any Security not falling under any of the foregoing paragraphs securing indebtedness the outstanding principal amount of which (when aggregated with the outstanding principal amount of any other indebtedness which has the benefit of Security given by any member of the Group other than any permitted under paragraphs (a) to (j) above) does not exceed CZK 250,000,000 (or its equivalent in other currencies).

 

“Permitted Share Issue” means an issue of shares by a member of the Group to its immediate Holding Company where (if the existing shares of the relevant member of the Group are the subject of the Transaction Security) the newly-issued shares also become subject to the Transaction Security on the same terms;

 

“Permitted Transaction” means:

 

	
  

	
(a)

	
any disposal required, Financial Indebtedness incurred, guarantee or Security or Quasi-Security given, or other transaction arising, under the Finance Documents; and

 

	
  

	
(b)

	
the solvent liquidation or reorganisation of any member of the Group which is not an Obligor so long as any payments or assets distributed as a result of such liquidation or reorganisation are distributed to other members of the Group;

 

	
  

	
(c)

	
the solvent amalgamation, demerger, merger, consolidation, corporate reconstruction or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) as between one member of the Group and other member of the Group and in the case of any such transaction involving an Obligor where such Obligor remains as the surviving entity;

 

	
  

	
(d)

	
transactions (other than (i) any sale, lease, licence, transfer or other disposal and (ii) the granting or creation of Security or the incurring or permitting to subsist of Financial Indebtedness) conducted in the ordinary course of business on arm’s length terms;

 

	 	
(e)

	 

 

	
  

	
(i)

	
the payment of dividends or the making of any other distributions on the capital stock of any entity which is a Restricted Subsidiary (within the meaning of the 2007 Indenture or the 2009 Indenture; each such Restricted Subsidiary referred to herein as an "Indenture Restricted Subsidiary") of the Parent or the payment of any indebtedness or other obligations owed by any Indenture Restricted Subsidiary to the Parent or to any other Indenture Restricted Subsidiary of the Parent;

 

  

20

  

 

	
  

	
(ii)

	
the making by any Indenture Restricted Subsidiary of any loans or advances to the Parent or to any Indenture Restricted Subsidiary,

 

provided that in the case of loans described in sub-paragraphs (i) or (ii) above, such loans also are subject to the requirements of paragraphs (c) and (e) of the definition of Permitted Loans, as applicable; or

 

	
  

	
(iii)

	
the transfer of any of the property or assets of any Indenture Restricted Subsidiary to the Parent or to any Indenture Restricted Subsidiary subject, in relation to any property or assets which are the subject of the Transaction Security, to the provisions of the Transaction Security Documents.

 

“PRIBOR” means in relation to any Loan:

 

	
  

	
(a)

	
the applicable Screen Rate: or

 

	
  

	
(b)

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

 

as of the Specified Time on the Quotation Day for the offering of deposits and for a period comparable to the Interest Period for that Loan.

 

“Party” means a party to this Agreement.

 

“Qualifying Lender” has the meaning given to it in Clause 13 (Tax gross-up and indemnities).

 

“Quarter Date” has the meaning given to that term in Clause 21.1 (Financial Definitions).

 

“Quasi-Security” has the meaning given to that term in Clause 22.9 (Negative pledge).

 

“Quotation Day” means, in relation to any period for which an interest rate is to be determined two Business Days before the first day of that period, unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

 

“Receiver” means a receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

 

“Reduction Date” means the fourth anniversary of the original date of this Agreement.

 

“Reduction Instalment” means a repayment instalment of such amount required to ensure that the Total Commitments (drawn and undrawn) on the Reduction Date, are reduced to CZK750,000,000.

 

  

21

  

 

“Reference Banks” means the principal office in Prague of BNP Paribas S.A., ING Bank N.V. and Česká spořitelna, a.s. or such other banks as may be appointed by the Agent in consultation with the Borrower.

 

“Refinancing Transactions” means:

 

	
  

	
(a)

	
entry by the Obligors into this Agreement and the Notes Documents;

 

	
  

	
(b)

	
application of proceeds of any Utilisations under the Facility on the Initial Utilisation Date; and

 

	
  

	
(c)

	
the repayment and cancellation of the Erste Facility.

 

“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 Interbank Market” means the Prague interbank market.

 

“Relevant Jurisdiction” means, in relation to an Obligor:

 

	
  

	
(a)

	
its jurisdiction of incorporation;

 

	
  

	
(b)

	
any jurisdiction where any asset subject to or intended to be subject to the Transaction Security to be created by it is situated;

 

	
  

	
(c)

	
any jurisdiction where it conducts a substantive part of its business; and

 

	
  

	
(d)

	
the jurisdiction whose laws govern the perfection of any of the Transaction Security Documents entered into by it.

 

“Repeating Representations” means each of the representations set out in Clauses 19.1 (Status) to 19.6 (Governing law and enforcement), 19.10 (No default), paragraph (c) of 19.11 (No misleading information), paragraphs (d) and (e) of 19.12 (Original Financial Statements) and 19.18 (Centre of main interests and establishments).

 

“Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

“Required Insurances” means insurances over any real property which is subject to the Transaction Security.

 

“Required Insurance Policies” means any documents evidencing, creating or conferring (or purporting to evidence, create or confer) any Required Insurances.

 

“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;

 

  

22

  

 

	
  

	
(b)

	
the aggregate amount of which is equal to or less than the amount of the maturing Loan; and

 

	
  

	
(c)

	
made or to be made to the Borrower for the purpose of refinancing a maturing Loan.

 

“Screen Rate” means the percentage rate per annum for the relevant period, displayed on the PRBO page of the Reuters screen.  If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders.

 

“Security” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

 

“Secured Parties” means the Security Agent, any Receiver or Delegate and each of the Finance Parties from time to time.

 

“Slovak Additional Guarantor” means an Additional Guarantor incorporated in the Slovak Republic.

 

“Slovak Commercial Code” means the Slovak Act No. 513/1991 Coll. the Commercial Code (as amended).

 

“Slovak Holdings” means CME Slovak Holdings B.V., a company incorporated in the Netherlands with registration number 34274606.

 

“Slovak Obligor” means Markiza or any other Obligor incorporated in the Slovak Republic.

 

“Specified Time” means a time determined in accordance with Schedule 11 (Timetables).

 

“Subsidiary” means, with respect to a person, company or corporation, any company or corporation:

 

	
  

	
(a)

	
which is controlled, directly or indirectly, by the first-mentioned person, company or corporation; or

 

	
  

	
(b)

	
which owns directly or indirectly at least half of the issued share capital or the ownership or any other equity interests or similar right of ownership; or

 

	
  

	
(c)

	
which is a subsidiary of another subsidiary of the first-mentioned person, company or corporation,

 

and, for these purposes, a person, company or corporation shall be treated as being controlled by another person, company or corporation if that other person, company or corporation is able to direct its affairs and/or to control the composition of its board of directors or equivalent body; or

 

	
  

	
(d)

	
in relation to a person incorporated (or established) under Dutch law, a “dochtermaatschappij” within the meaning of Section 2.24a of the Dutch Civil Code (regardless whether the shares or voting rights on the shares in such company are held directly or indirectly through another “dochtermaatschappij”).

 

  

23

  

 

“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) in any jurisdiction.

 

“Termination Date” means the fifth anniversary of the original date of this Agreement.

 

“Total Commitments” means the aggregate of the Commitments, being CZK 1,500,000,000 at the original date of this Agreement.

 

“Total Purchase Price” means the consideration (including associated costs and expenses) for  a an acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in the acquired company (or any such business) at the date of acquisition.

 

“Transaction Security” means the Security created or expressed to be created in favour of the Security Agent pursuant to the Transaction Security Documents.

 

“Transaction Security Documents” means each of the documents listed as being a Transaction Security Document in paragraph 2(g) of Part I of Schedule 2 (Conditions Precedent) and any document required to be delivered to the Agent under paragraph 11 of Part II of Schedule 2 (Conditions Precedent) together with any other document entered into by any Obligor creating or expressing to create any Security over all or any part of its assets in respect of the obligations of any of the Obligors under any of the Finance Documents.

 

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

 

“Transfer Date” means, in relation to an assignment or 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 Agent executes the relevant Assignment Agreement or Transfer Certificate.

 

“Treasury Transaction” means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price but not for speculative purposes.

 

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

 

“Utilisation” means a utilisation of the Facility.

 

“Utilisation Date” means the date of a Utilisation, being the date on which a Loan is to be made.

 

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

 

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

 

  

24

  

 

	
1.2

	
Construction

 

	
  

	
(a)

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

 

	
  

	
(i)

	
the “Agent”, the “Arranger”, any “Finance Party”, any “Lender”, any “Obligor”, any “Party”, any “Secured Party”, the “Security Agent” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees and in the case of the Security Agent, any person for the time being appointed as Security Agent or Security Agents in accordance with the Finance Documents;

 

	
  

	
(ii)

	
a document in “agreed form” is a document which is previously agreed in writing by or on behalf of the Borrower and the Agent or, if not so agreed, is in the form specified by the Agent.

 

	
  

	
(iii)

	
“assets” includes present and future properties, revenues and rights of every description;

 

	
  

	
(iv)

	
a “Finance Document”, Broadcasting Licence or any other agreement or instrument is a reference to that Finance Document, Broadcasting Licence or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

	
  

	
(v)

	
“guarantee” means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

	
  

	
(vi)

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

 

	
  

	
(vii)

	
a “person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

 

	
  

	
(viii)

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

 

	
  

	
(ix)

	
a provision of law is a reference to that provision as amended or re-enacted; and

 

	
  

	
(x)

	
a time of day is a reference to London time.

 

	
  

	
(b)

	
Section, Clause and Schedule headings are for ease of reference only.

 

  

25

  

 

	
  

	
(c)

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

 

	
  

	
(d)

	
A Default (other than an Event of Default) is “continuing” if it has not been remedied or waived.

 

	
  

	
(e)

	
An Event of Default (other than a Core Event of Default) is “continuing” if it has not been waived or, if it is capable of remedy, has not been remedied and a Core Event of Default is “continuing” if it has not been waived.

 

	
1.3

	
Czech terms

 

In this Agreement, a reference used in connection with the Borrower or any Finance Document or other document, to which the Borrower is a party, to:

 

	
  

	
(a)

	
a novation includes privativní novace and kumulativní novace;

 

	
  

	
(b)

	
Security includes zástavní právo, zadržovací právo, zajišťovací převod práva, and zajišťovací postoupení pohledávky;

 

	
  

	
(c)

	
a bankruptcy or insolvency includes insolvenční řízení, konkurs, reorganizace, and nucená správa;

 

	
  

	
(d)

	
being bankrupt or insolvent includes being v úpadku, v hrozícím úpadku, předlužený, platebně neschopný, v konkurzu, v reorganizaci, and v nucené správě;

 

	
  

	
(e)

	
an expropriation, attachment, sequestration, distress, execution or analogous process includes vyvlastnění, exekuce and výkon rozhodnutí;

 

	
  

	
(f)

	
winding-up, dissolution, administration or reorganisation includes likvidace, zrušení s likvidací, zrušení bez likvidace bez právního nástupce, insolvenční řízení, konkurs, reorganizace and nucená správa;

 

	
  

	
(g)

	
a receiver, administrator, administrative receiver, compulsory manager or similar officer includes likvidátor, insolvenční správce (including předběžný správce), nucený správce, and exekutor;

 

	
  

	
(h)

	
a moratorium includes reorganizace and moratorium; and

 

	
  

	
(i)

	
constitutional documents includes společenská smlouva, zakladatelská listina, zakladatelská smlouva, zřizovací listina, statut, and stanovy.

 

	
1.4

	
Slovak Terms

 

In this Agreement, a reference used in connection with a Slovak Obligor or any Finance Document or other document, to which any Slovak Obligor is a party, to:

 

	
  

	
(a)

	
a novation includes privatívna novácia and kumulatívna novácia;

 

	
  

	
(b)

	
Security includes záložné právo, zádržné právo, zabezpečovací prevod práva, and zabezpečovacie postúpenie pohľadávky;

 

  

26

  

 

	
  

	
(c)

	
a bankruptcy or insolvency includes konkurzné konanie, konkurz, reštrukturalizačné konanie, reštrukturalizácia, and nútená správa;

 

	
  

	
(d)

	
being bankrupt or insolvent includes being v úpadku, predlžený, platobne neschopný, v konkurze, v reštrukturalizácii, and v nútenej správe;

 

	
  

	
(e)

	
an expropriation, attachment, sequestration, distress, execution or analogous process includes vyvlastnenie, exekúcia and výkon rozhodnutia;

 

	
  

	
(f)

	
winding-up, dissolution, administration or reorganisation includes likvidácia, zrušenie s likvidáciou, zrušenie bez likvidácie bez právneho nástupcu, konkurzné konanie, konkurz, reštrukturalizačné konanie, reštrukturalizácia, and nútená správa;

 

	
  

	
(g)

	
a receiver, administrator, administrative receiver, compulsory manager or similar officer includes likvidátor, konkurzný správca (including predbežný správca), reštrukturalizačný správca, nútený správca, and súdny exekútor;

 

	
  

	
(h)

	
a moratorium includes reštrukturalizačné konanie and reštrukturalizácia; and

 

	
  

	
(i)

	
constitutional documents includes spoločenská zmluva, zakladateľská listina, zakladateľská zmluva, zriaďovacia listina, štatút, and stanovy.

 

	
1.5

	
Dutch terms

 

In this Agreement, a reference used in connection with a Dutch Obligor or any Finance Document or other document, to which any Dutch Obligor is a party, to:

 

	
  

	
(a)

	
a necessary action to authorise, where applicable, includes without limitation:

 

	
  

	
(i)

	
any action required to comply with the Dutch Works Council Act (Wet op de ondernemingsraden); and

 

	
  

	
(ii)

	
obtaining unconditional positive advice (advies) from each competent works council;

 

	
  

	
(b)

	
a winding-up, administration or dissolution includes a Dutch entity being:

 

	
  

	
(i)

	
declared bankrupt (failliet verklaard); or

 

	
  

	
(ii)

	
dissolved (ontbonden);

 

	
  

	
(c)

	
a moratorium includes surséance van betaling and granted a moratorium includes surséance verleend;

 

	
  

	
(d)

	
a trustee in bankruptcy includes a curator;

 

	
  

	
(e)

	
an administrator includes a bewindvoerder;

 

	
  

	
(f)

	
a receiver or an administrative receiver does not include a curator or bewindvoerder;

 

	
  

	
(g)

	
an attachment includes a beslag; and

 

  

27

  

 

	
  

	
(h)

	
a Security includes any mortgage (hypotheek), pledge (pandrecht), retention of title arrangement (eigendomsvoorbehoud), privilege (voorrecht), retention right (recht van retentie), right to reclaim goods (recht van reclame), and, in general, any right in rem (beperkt recht), created for the purpose of granting security (goederenrechtelijk zekerheidsrecht).

 

	
1.6

	
Curacao terms

 

In this Agreement, a reference used in connection with a Curacao entity or any Finance Document or other document, to which a Curacao entity is party, to:

 

	
  

	
(a)

	
a winding-up, administration or dissolution includes a Curacao entity being:

 

	
  

	
(i)

	
declared bankrupt (failliet verklaard); or

 

	
  

	
(ii)

	
dissolved (ontbonden);

 

	
  

	
(b)

	
a moratorium includes surséance van betaling and granted a moratorium includes surséance verleend;

 

	
  

	
(c)

	
a trustee in bankruptcy includes a curator;

 

	
  

	
(d)

	
an administrator includes a bewindvoerder;

 

	
  

	
(e)

	
a receiver or an administrative receiver does not include a curator or bewindvoerder;

 

	
  

	
(f)

	
an attachment includes a beslag; and

 

	
  

	
(g)

	
a Security includes any mortgage (hypotheek), pledge (pandrecht), retention of title arrangement (eigendomsvoorbehoud), privilege (voorrecht), retention right (recht van retentie), right to reclaim goods (recht van reclame), and, in general, any right in rem (goederenrechtelijk recht), created for the purpose of granting security (goederenrechtelijk zekerheidsrecht).

 

	
1.7

	
Third Party Rights

 

	
  

	
(a)

	
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.

 

	
  

	
(b)

	
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.

 

  

28

  

 

SECTION 2

 

THE FACILITIES

 

	
2.

	
THE FACILITY

 

	
2.1

	
The Facility

 

Subject to the terms of this Agreement, the Lenders make available to the Borrower a CZK revolving loan facility in an aggregate amount equal to the Total Commitments.

 

	
2.2

	
Finance Parties’ rights and obligations

 

	
  

	
(a)

	
The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

	
  

	
(b)

	
The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt.

 

	
  

	
(c)

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

 

	
2.3

	
Obligors’ Agent

 

	
  

	
(a)

	
Each Obligor (other than the Borrower) by its execution of this Agreement or an Accession Letter irrevocably appoints the Borrower to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

 

	
  

	
(i)

	
the Borrower on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect the Obligor, without further reference to or the consent of that Obligor; and

 

	
  

	
(ii)

	
each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Borrower,

 

and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.

 

	
  

	
(b)

	
Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors’ Agent or given to the Obligors’ Agent under any Finance Document on behalf of another Obligor or in connection with any Finance Document (whether or not known to any other Obligor and whether occurring before or after such other Obligor became an Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall prevail.

 

  

29

  

 

	
3.

	
PURPOSE

 

	
3.1

	
Purpose

 

The Borrower shall apply amounts borrowed by it under the Facility towards financing the Group’s working capital requirements and for general corporate purposes.

 

	
3.2

	
Monitoring

 

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

	
4.

	
CONDITIONS OF UTILISATION

 

	
4.1

	
Initial conditions precedent

 

The Borrower may not deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions precedent) in form and substance satisfactory to the Agent.  The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied including, without limitation, upon satisfaction of the condition precedent listed in paragraph 5(i) of Part I of Schedule 2 (Conditions Precedent).

 

	
4.2

	
Further conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

	
  

	
(a)

	
in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan; and

 

	
  

	
(b)

	
the Repeating Representations to be made by each Obligor are true in all material respects.

 

	
4.3

	
Maximum number of Loans

 

The Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation seven or more Loans would be outstanding.

 

  

30

  

 

SECTION 3

 

UTILISATION

 

	
5.

	
UTILISATION

 

	
5.1

	
Delivery of a Utilisation Request

 

The Borrower may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time provided that no Utilisation Request may be delivered within the period of five Business Days following a previous Utilisation Request.

 

	
5.2

	
Completion of a Utilisation Request

 

	
  

	
(a)

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

 

	
  

	
(i)

	
the proposed Utilisation Date is a Business Day within the Availability Period;

 

	
  

	
(ii)

	
the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

 

	
  

	
(iii)

	
the proposed Interest Period complies with Clause 10 (Interest Periods).

 

	
  

	
(b)

	
Only one Loan may be requested in each Utilisation Request.

 

	
5.3

	
Currency and amount

 

	
  

	
(a)

	
The currency specified in a Utilisation Request must be CZK.

 

	
  

	
(b)

	
The amount of the proposed Loan must be a minimum of CZK62,500,000 or a higher integral multiple of CZK25,000,000 or, if less, the Available Facility.

 

	
5.4

	
Lenders’ participation

 

	
  

	
(a)

	
If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

 

	
  

	
(b)

	
The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

 

	
  

	
(c)

	
The Agent shall notify each Lender of the amount of each Loan and the amount of its participation in that Loan by the Specified Time.

 

	
5.5

	
Cancellation of Commitment

 

The Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period.

 

  

31

  

 

SECTION 4

 

REPAYMENT, PREPAYMENT AND CANCELLATION

 

	
6.

	
REPAYMENT

 

	
6.1

	
Repayment of Loans

 

The Borrower shall repay each Loan on the last day of its Interest Period.

 

	
6.2

	
Netting of payments

 

If on any Utilisation Date the Lenders are required to make a Loan which is a Rollover Loan, unless otherwise requested by the Borrower, the Lenders (or the Agent on their behalf) will set-off their obligations to advance such Loan against the Borrower’s obligation to repay the Loan so intended to be repaid and, to the extent of such set-off the Borrower’s obligation to repay shall be satisfied.

 

	
6.3

	
Reduction of Facility

 

On the Reduction Date:

 

	
  

	
(a)

	
the Borrower shall repay Loans in an amount equal to the Reduction Instalment; and

 

	
  

	
(b)

	
the Total Commitments shall be reduced to CZK750,000,000, provided that if a repayment is required under paragraph (a) above, the reduction under this paragraph shall occur immediately after such repayment.

 

	
7.

	
MANDATORY PREPAYMENT

 

	
7.1

	
Illegality

 

If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan:

 

	
  

	
(a)

	
that Lender shall promptly notify the Agent upon becoming aware of that event;

 

	
  

	
(b)

	
upon the Agent notifying the Borrower, the Commitment of that Lender will be immediately cancelled; and

 

	
  

	
(c)

	
the Borrower shall repay that Lender’s participation in the Loans on the last day of the Interest Period for each Loan occurring after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).

 

	
7.2

	
Prepayment and Cancellation Events

 

	
  

	
(a)

	
For the purpose of this Clause 7.2:

 

“Senior Debt Priority Event” means that at any time the Total Commitments (drawn and undrawn) constitute less than 15 per cent of the aggregate principal amount of the Total Commitments (drawn and undrawn) and the principal amount outstanding under the Notes.

 

  

32

  

 

	
  

	
(b)

	
Upon the occurrence of a Borrower Change of Control or a Parent Change of Control, if a Lender so requires and notifies the Agent, the Agent shall, by not less than 20 Business Days notice to the Borrower, cancel the Commitment of that Lender and declare the participation of that Lender in all outstanding Loans, together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Commitment of that Lender will be cancelled and all such outstanding amounts will become immediately due and payable.

 

	
  

	
(c)

	
Upon the occurrence of:

 

	
  

	
(i)

	
a Senior Debt Priority Event; or

 

	
  

	
(ii)

	
the sale, lease, transfer, conveyance or other disposal of all or substantially all of the assets of the Group whether in a single transaction or a series of related transactions, 

 

the Facility will be cancelled and all outstanding Utilisations, together with accrued interest, and all other amounts accrued under the Finance Documents, shall become immediately due and payable.

 

	
7.3

	
Pro rata repayment and cancellation on repayment or prepayment of the Notes

 

If any principal amount of the Notes is repaid or prepaid (a “Principal Notes Payment”), then on the date of such repayment or prepayment:

 

	
  

	
(a)

	
the Borrower shall prepay (such payment a “Pro Rata RCF Payment”) outstanding Loans in the same proportion to the Total Commitments (drawn or undrawn) as the Principal Notes Payment bears to the principal amount outstanding under the Notes; and

 

	
  

	
(b)

	
the Total Commitments shall be reduced by the amount of such Pro Rata RCF Payment.

 

	
8.

	
VOLUNTARY PREPAYMENT AND CANCELLATION

 

	
8.1

	
Voluntary cancellation

 

The Borrower may, if it gives the Agent not less than five Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of CZK100,000,000) of the Available Facility.  Any cancellation under this Clause 8.1 shall reduce the Commitments of the Lenders rateably.

 

	
8.2

	
Voluntary Prepayment of Loans

 

The Borrower may, if it gives the Agent not less than five  Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan (but if in part, being an amount that reduces the amount of the Loan by a minimum amount of CZK100,000,000).

 

  

33

  

 

	
8.3

	
Right of replacement or repayment and cancellation in relation to a single Lender

 

	
  

	
(a)

	
If:

 

	
  

	
(i)

	
any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 13.2 (Tax gross-up); or

 

	
  

	
(ii)

	
any Lender claims indemnification from the Borrower under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs), the Borrower may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loans or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

 

	
  

	
(b)

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

 

	
  

	
(c)

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

 

	
  

	
(d)

	
The Borrower may, in the circumstances set out in paragraph (a) above, on fifteen  Business Days’ prior notice to the Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 24 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Borrower which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 24 (Changes to the Lenders) for a purchase price in cash or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Loans and all accrued interest, any Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

	
  

	
(e)

	
The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

 

	
  

	
(i)

	
the Borrower shall have no right to replace the Agent;

 

	
  

	
(ii)

	
neither the Agent nor any Lender shall have any obligation to find a replacement Lender; and

 

	
  

	
(iii)

	
in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents.

 

  

34

  

 

	
8.4

	
Restrictions

 

	
  

	
(a)

	
Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

	
  

	
(b)

	
Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

	
  

	
(c)

	
Unless a contrary indication appears in this Agreement, any part of the Facility which is prepaid or repaid may be reborrowed in accordance with the terms of this Agreement.

 

	
  

	
(d)

	
The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

 

	
  

	
(e)

	
No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

 

	
  

	
(f)

	
If the Agent receives a notice under this Clause 8 it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate.

 

	
  

	
(g)

	
If all or part of a Loan is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of the Commitments (equal to the amount of the Loan which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment.  Any cancellation under this paragraph (g) shall reduce the Commitments of the Lenders rateably.

 

  

35

  

 

SECTION 5

 

COSTS OF UTILISATIONS

 

	
9.

	
INTEREST

 

	
9.1

	
Calculation of interest

 

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

 

	
  

	
(a)

	
Margin;

 

	
  

	
(b)

	
PRIBOR; and

 

	
  

	
(c)

	
Mandatory Cost, if any.

 

	
9.2

	
Payment of interest

 

The Borrower shall pay accrued interest on each Loan on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period).

 

	
9.3

	
Default interest

 

	
  

	
(a)

	
If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is 2 per cent. higher than 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 successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 9.3 shall be immediately payable by the Obligor on demand by the Agent.

 

	
  

	
(b)

	
If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

 

	
  

	
(i)

	
the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

 

	
  

	
(ii)

	
the rate of interest applying to the overdue amount during that first Interest Period shall be 2 per cent. higher than the rate which would have applied if the overdue amount had not become due.

 

	
  

	
(c)

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

 

	
9.4

	
Notification of rates of interest

 

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

 

  

36

  

 

	
10.

	
INTEREST PERIODS

 

	
10.1

	
Selection of Interest Periods

 

	
  

	
(a)

	
The Borrower  may select an Interest Period for a Loan in the Utilisation Request for that Loan.

 

	
  

	
(b)

	
Subject to this Clause 10, the Borrower may select an Interest Period of three or six Months or any other period agreed between the Borrower and the Agent (acting on the instructions of all the Lenders for any period of more than six Months). In addition the Borrower may select an Interest Period of a period of less than three Months if necessary to ensure that there are sufficient Loans (with an aggregate amount equal to or greater than the Reduction Instalment) which have an Interest Period ending on a Reduction Date for the scheduled reduction to occur.

 

	
  

	
(c)

	
An Interest Period for a Loan shall not extend beyond the Termination Date.

 

	
  

	
(d)

	
Each Interest Period for a Loan shall start on the Utilisation Date of that Loan.

 

	
  

	
(e)

	
A Loan has one Interest Period only.

 

	
10.2

	
Changes to Interest Periods

 

	
  

	
(a)

	
Prior to determining the interest rate for a Loan, the Agent may shorten the Interest Period for any Loan to ensure that, when aggregated with the Available Facility, there are sufficient Loans (with an aggregate amount equal to or greater than the Reduction Instalment) which have an Interest Period ending on a Reduction Date for the scheduled reduction to occur.

 

	
  

	
(b)

	
f the Agent makes any of the changes to an Interest Period referred to in this Clause 10.2, it shall promptly notify the Borrower and the Lenders.

 

	
10.3

	
Non-Business Days

 

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

 

	
11.

	
CHANGES TO THE CALCULATION OF INTEREST

 

	
11.1

	
Absence of quotations

 

Subject to Clause 11.2 (Market disruption), if PRIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable PRIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

 

	
11.2

	
Market disruption

 

	
  

	
(a)

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

 

  

37

  

 

	
  

	
(i)

	
the Margin;

 

	
  

	
(ii)

	
the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select; and

 

	
  

	
(iii)

	
the Mandatory Cost, if any, applicable to that Lender’s participation in the Loan.

 

	
  

	
(b)

	
In this Agreement “Market Disruption Event” means:

 

	
  

	
(i)

	
at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to the Agent to determine PRIBOR for the relevant Interest Period; or

 

	
  

	
(ii)

	
before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of PRIBOR.

 

	
11.3

	
Alternative basis of interest or funding

 

	
  

	
(a)

	
If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the 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.

 

	
  

	
(b)

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

 

	
11.4

	
Break Costs

 

	
  

	
(a)

	
The Borrower shall, within five  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 the Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

 

	
  

	
(b)

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

 

	
12.

	
FEES

 

	
12.1

	
Commitment fee

 

	
  

	
(a)

	
The Borrower shall pay to the Agent (for the account of each Lender) a fee computed at the rate of 40 per cent. per annum of the Margin applicable to that Lender’s Available Commitment for the Availability Period.

 

  

38

  

 

	
  

	
(b)

	
The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period, on the last day of the Availability Period and, if cancelled, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective.

 

	
12.2

	
Utilisation fee

 

	
  

	
(a)

	
The Borrower shall pay to the Agent (for the account of each Lender) a fee computed at the rate of 0.30 per cent. per annum of any outstanding Loans for such period prior to the Reduction Date that the Utilisations under the Facility exceed 50 per cent. of the Total Commitments; and

 

	
  

	
(b)

	
The accrued utilisation fee is payable on the last day of each successive period of three Months which ends prior to the Reduction Date and on the Reduction Date.

 

	
12.3

	
Arrangement and participation fees

 

	
  

	
(a)

	
The Borrower shall pay to the Arrangers arrangement fees in the amount and at the times agreed in one or more Fee Letters.

 

	
  

	
(b)

	
The Borrower shall pay to Citibank Europe plc (acting through its Prague branch Citibank Europe plc, organizační složka), in its capacity as an Original Lender, a participation fee in the amount and at the times agreed in a Fee Letter.

 

	
12.4

	
Agency fee

 

The Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

	
12.5

	
Security Agent fee

 

The Borrower shall pay to the Security Agent (for its own account) the Security Agent fee in the amount and at the times agreed in a Fee Letter.

 

  

39

  

 

SECTION 6

 

ADDITIONAL PAYMENT OBLIGATIONS

 

	
13.

	
TAX GROSS UP AND INDEMNITIES

 

	
13.1

	
Definitions

 

	
  

	
(a)

	
In this Agreement:

 

“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:

 

	
  

	
(i)

	
a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:

 

	
  

	
(A)

	
resident solely in the Czech Republic;

 

	
  

	
(B)

	
lending through a Facility Office in the Czech Republic being a permanent establishment for tax purposes; or

 

	
  

	
(C)

	
a Treaty Lender.

 

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

 

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

 

“Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity).

 

“Treaty Lender” means a Lender which:

 

	
  

	
(i)

	
is treated as a resident of a Treaty State for the purposes of the Treaty and qualifies for the benefit of that Treaty; and

 

	
  

	
(ii)

	
does not carry on a business in the Czech Republic through a permanent establishment with which that Lender’s participation in the Loan is effectively connected.

 

“Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the Czech Republic which makes provision for full exemption from tax imposed by the Czech Republic on interest.

 

	
  

	
(b)

	
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.

 

  

40

  

 

	
13.2

	
Tax gross-up

 

	
  

	
(a)

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

 

	
  

	
(b)

	
The Borrower shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender.  If the Agent receives such notification from a Lender it shall notify the Borrower and that Obligor.

 

	
  

	
(c)

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

 

	
  

	
(d)

	
A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the Czech Republic, if on the date on which the payment falls due:

 

	
  

	
(i)

	
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

 

	
  

	
(ii)

	
the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (g) below.

 

	
  

	
(e)

	
If an Obligor is required to make a Tax Deduction, that Obligor 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.

 

	
  

	
(f)

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

 

	
  

	
(g)

	
A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

 

	
13.3

	
Tax indemnity

 

	
  

	
(a)

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

 

  

41

  

 

	
  

	
(b)

	
Paragraph (a) above shall not apply:

 

	
  

	
(i)

	
with respect to any Tax assessed on a Finance Party:

 

	
  

	
(A)

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

 

	
  

	
(B)

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

 

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

 

	
  

	
(ii)

	
to the extent a loss, liability or cost:

 

	
  

	
(A)

	
is compensated for by an increased payment under Clause 13.2 (Tax gross-up); or

 

	
  

	
(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 paragraph (d) of Clause 13.2 (Tax gross-up) applied.

 

	
  

	
(c)

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

 

	
  

	
(d)

	
A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3, notify the Agent.

 

	
13.4

	
Tax Credit

 

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

 

	
  

	
(a)

	
a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and

 

	
  

	
(b)

	
that Finance Party has obtained, utilised and retained that Tax Credit, 

 

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

 

	
13.5

	
Lender Status Confirmation

 

Each Lender which becomes a Party to this Agreement after the original date of this Agreement shall indicate, in the Transfer Certificate or Assignment Agreement which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:

 

  

42

  

 

	
  

	
(a)

	
not a Qualifying Lender;

 

	
  

	
(b)

	
a Qualifying Lender (other than a Treaty Lender); or

 

	
  

	
(c)

	
a Treaty Lender.

 

If a New 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 (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Borrower).  For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure of a Lender to comply with this Clause 13.5.

 

	
13.6

	
Stamp taxes

 

The Borrower shall pay and, within five 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.

 

	
13.7

	
VAT

 

	
  

	
(a)

	
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 paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document, 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).

 

	
  

	
(b)

	
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.

 

	
  

	
(c)

	
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.

 

  

43

  

 

	
  

	
(d)

	
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 or equivalent in any relevant jurisdiction).

 

	
14.

	
INCREASED COSTS

 

	
14.1

	
Increased costs

 

	
  

	
(a)

	
Subject to Clause 14.3 (Exceptions) the Borrower shall, within five Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation in either case made after the original date of this Agreement.

 

	
  

	
(b)

	
In this Agreement “Increased Costs” means:

 

	
  

	
(i)

	
a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

 

	
  

	
(ii)

	
an additional or increased cost; or

 

	
  

	
(iii)

	
a reduction of any amount due and payable under any Finance Document, which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document.

 

	
14.2

	
Increased cost claims

 

	
  

	
(a)

	
A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.

 

	
  

	
(b)

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

 

	
14.3

	
Exceptions

 

	
  

	
(a)

	
Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is:

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
compensated for by Clause 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 paragraph (b) of Clause 13.3 (Tax indemnity) applied);

 

	
  

	
(iii)

	
compensated for by the payment of the Mandatory Cost; or

 

  

44

  

 

	
  

	
(iv)

	
attributable to the negligent failure to comply or wilful breach by the relevant Finance Party or its Affiliates, of any law or regulation.

 

	
  

	
(b)

	
In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning given to the term in Clause 13.1 (Definitions).

 

	
15.

	
OTHER INDEMNITIES

 

	
15.1

	
Currency indemnity

 

	
  

	
(a)

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

 

	
  

	
(i)

	
making or filing a claim or proof against that Obligor;

 

	
  

	
(ii)

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

 

	
  

	
(b)

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

 

	
15.2

	
Other indemnities

 

The Borrower shall (or shall procure that an Obligor will), within five Business Days of demand, indemnify each Finance Party and its Affiliates (each an “Indemnified Party”) against any cost, loss or liability incurred by that Indemnified Party as a result of:

 

	
  

	
(a)

	
the occurrence of any Event of Default;

 

	
  

	
(b)

	
a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 29 (Sharing among the Finance Parties);

 

	
  

	
(c)

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

 

	
  

	
(d)

	
a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

 

  

45

  

 

	
15.3

	
Indemnity to the Agent

 

The Borrower shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

	
  

	
(a)

	
investigating any event which it reasonably believes is a Default; or

 

	
  

	
(b)

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

 

	
15.4

	
Indemnity to the Security Agent

 

	
  

	
(a)

	
Each Obligor shall promptly indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:

 

	
  

	
(i)

	
the taking, holding, protection or enforcement of the Transaction Security,

 

	
  

	
(ii)

	
the exercise of any of the rights, powers, discretions and remedies vested in the Security Agent and each Receiver and Delegate by the Finance Documents or by law; or

 

	
  

	
(iii)

	
any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents.

 

	
  

	
(b)

	
The Security Agent may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 15.4 and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all monies payable to it.

 

	
16.

	
MITIGATION BY THE LENDERS

 

	
16.1

	
Mitigation

 

	
  

	
(a)

	
Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 13 (Tax gross-up and indemnities), Clause 14 (Increased costs) or paragraph 3 of Schedule 4 (Mandatory Cost Formulae) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

	
  

	
(b)

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

 

	
16.2

	
Limitation of liability

 

	
  

	
(a)

	
The Borrower shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation).

 

  

46

  

 

	
  

	
(b)

	
A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

	
17.

	
COSTS AND EXPENSES

 

	
17.1

	
Transaction expenses

 

The Borrower shall, within five Business days of receipt of an invoice or other written evidence, pay the Agent, the Arrangers and the Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them (and in the case of the Security Agent, by any Receiver or Delegate) in connection with the negotiation, preparation, printing, execution and syndication of:

 

	
  

	
(a)

	
this Agreement and any other documents referred to in this Agreement and the Transaction Security; and

 

	
  

	
(b)

	
any other Finance Documents executed after the original date of this Agreement, subject, in the case of paragraph (a), to any limits agreed between the Agent and the Borrower from time to time.

 

	
17.2

	
Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 30.9 (Change of currency), the Borrower shall, within five Business Days of receipt of an invoice or other written evidence, reimburse the Agent and the Security Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent and the Security Agent (and in the case of the Security Agent, by any Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.

 

	
17.3

	
Security Agent’s ongoing costs

 

	
  

	
(a)

	
In the event of (i) a Default or (ii) the Security Agent (acting upon the instructions of the Majority Lenders) considering it necessary or expedient or (iii) the Security Agent being requested by an Obligor or the Majority Lenders to undertake duties which the Security Agent and the Borrower agree to be of an exceptional nature and/or outside the scope of the normal duties of the Security Agent under the Finance Documents, the Borrower shall pay to the Security Agent any additional remuneration that may be agreed between them.

 

	
  

	
(b)

	
If the Security Agent and the Borrower fail to agree upon the nature of the duties or upon any additional remuneration, that dispute shall be determined by an investment bank (acting as an expert and not as an arbitrator) selected by the Security Agent and approved by the Borrower or, failing approval, nominated (on the application of the Security Agent) by the President for the time being of the Law Society of England and Wales (the costs of the nomination and of the investment bank being payable by the Borrower) and the determination of any investment bank shall be final and binding upon the parties to this Agreement.

 

  

47

  

 

	
17.4

	
Enforcement and preservation costs

 

The Borrower shall, within five Business Days of demand, pay to the Arrangers and each other Secured 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 and the Transaction Security and any proceedings instituted by or against the Security Agent as a consequence of taking or holding the Transaction Security or enforcing these rights.

 

  

48

  

SECTION 7

 

GUARANTEE

 

	
18.

	
GUARANTEE AND INDEMNITY

 

	
18.1

	
Guarantee and indemnity

 

Each Guarantor irrevocably and unconditionally jointly and severally:

 

	
  

	
(a)

	
guarantees to each Finance Party punctual performance by the Borrower of all the Borrower’s obligations under the Finance Documents;

 

	
  

	
(b)

	
undertakes with each Finance Party that whenever the Borrower does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and

 

	
  

	
(c)

	
agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, for any reason whatsoever, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 18 if the amount claimed had been recoverable on the basis of a guarantee.

 

	
18.2

	
Continuing guarantee

 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

 

	
18.3

	
Reinstatement

 

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 18 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

 

	
18.4

	
Waiver of defences

 

The obligations of each Guarantor under this Clause 18 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 18 (without limitation and whether or not known to it or any Finance Party) including:

 

  

49

  

 

	
  

	
(a)

	
any time, waiver or consent granted to, or composition with, any Obligor or other person;

 

	
  

	
(b)

	
the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

 

	
  

	
(c)

	
the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

 

	
  

	
(d)

	
any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

 

	
  

	
(e)

	
any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

 

	
  

	
(f)

	
any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or

 

	
  

	
(g)

	
any insolvency or similar proceedings.

 

	
18.5

	
Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 18.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

	
18.6

	
Appropriations

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

 

	
  

	
(a)

	
refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

 

	
  

	
(b)

	
hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 18.

 

  

50

  

 

	
18.7

	
Deferral of Guarantors’ rights

 

	
  

	
(a)

	
Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 18:

 

	
  

	
(i)

	
to be indemnified by an Obligor;

 

	
  

	
(ii)

	
to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents;

 

	
  

	
(iii)

	
to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

 

	
  

	
(iv)

	
to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 18.1 (Guarantee and Indemnity);

 

	
  

	
(v)

	
to exercise any right of set-off against any Obligor; and/or

 

	
  

	
(vi)

	
to claim or prove as a creditor of any Obligor in competition with any Finance Party.

 

	
  

	
(b)

	
Subject to paragraph (c) below, if a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 30 (Payment mechanics).

 

	
  

	
(c)

	
Each Guarantor which is a Slovak Obligor shall, as a commissioned agent (in Slovak: komisionár) under Section 577 et seq. of the Slovak Commercial Code, hold in its own name but for the account of the Finance Parties any benefit, payment or distribution received by it contrary to this Clause 18 and must immediately pay or transfer to the Agent or as the Agent may direct for application in accordance with Clause 30 (Payment mechanics).

 

	
18.8

	
Release of Guarantors’ right of contribution

 

If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

 

	
  

	
(a)

	
that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and

 

  

51

  

 

	
  

	
(b)

	
each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where such rights or security are granted by or in relation to the assets of the Retiring Guarantor.

 

	
18.9

	
Additional security

 

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.

 

	
18.10

	
Guarantee Limitations

 

	
  

	
(a)

	
In respect of a Dutch Obligor, the guarantee under this Clause 18 does not apply to any liability to the extent that it would result in this guarantee constituting unlawful financial assistance within the meaning of section 2:207c of the Dutch Civil Code.

 

	
  

	
(b)

	
This guarantee does not apply to any liability to the extent it would result in this guarantee constituting unlawful financial assistance provided by a Slovak Obligor (having a legal form of joint-stock company (akciová spoločnost)) within the meaning of Section 161e of the Slovak Commercial Code.

 

  

52

  

SECTION 8

 

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

 

	
19.

	
REPRESENTATIONS

 

Each Obligor (for itself only and, in the case of the Borrower, for itself and each member of the Group) makes the representations and warranties set out in this Clause 19 to each Finance Party on the original date of this Agreement.

 

	
19.1

	
Status

 

	
  

	
(a)

	
It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

	
  

	
(b)

	
It and each of its Subsidiaries has the power to own its material assets and carry on its business in all material respects as it is being conducted.

 

	
19.2

	
Binding obligations

 

Subject to the Legal Reservations:

 

	
  

	
(a)

	
the obligations expressed to be assumed by it in each Finance Document to which it is a party are legal, valid, binding and enforceable obligations; and

 

	
  

	
(b)

	
(without limiting the generality of paragraph (a) above), each Transaction Security Document to which it is a party creates the security interests which that Transaction Security Document purports to create and those security interests are valid and effective.

 

	
19.3

	
Non-conflict with other obligations

 

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

 

	
  

	
(a)

	
any material law or regulation applicable to it;

 

	
  

	
(b)

	
its or any member of the Group’s constitutional documents; or

 

	
  

	
(c)

	
any material agreement or instrument binding upon it (including, without limitation, the Parent Note Documents) or any member of the Group or any of its or any member of the Group’s material assets or constitute a default or termination event (however described) under any such agreement or instrument, in each case to the extent that it would be expected to have a Material Adverse Effect.

 

	
19.4

	
Power and authority

 

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

 

  

53

  

 

	
19.5

	
Validity and admissibility in evidence

 

	
  

	
(a)

	
All Authorisations required:

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
to make the Finance Documents to which it is a party admissible in evidence in its Relevant Jurisdictions (subject to any necessary translation of such Finance Document and notarisation of any such translation), 

 

have been obtained or effected and are in full force and effect.

 

	
  

	
(b)

	
All Authorisations (including, without limitation, the Broadcasting Licences) necessary for the material conduct of the business of any Obligor have been obtained or effected and are in full force and effect except where failure to obtain or effect such Authorisations would not reasonably be expected to have a Material Adverse Effect.

 

	
19.6

	
Governing law and enforcement

 

Subject to the Legal Reservations:

 

	
  

	
(a)

	
the choice of governing law of each of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions; and

 

	
  

	
(b)

	
any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

	
19.7

	
Deduction of Tax

 

Subject to the Legal Reservations, the Borrower 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:

 

	
  

	
(a)

	
a Qualifying Lender falling within paragraph (b) of the definition of Qualifying Lender; or

 

	
  

	
(b)

	
a Treaty Lender.

 

	
19.8

	
Insolvency

 

No:

 

	
  

	
(a)

	
corporate action, legal proceeding or other procedure or step described in paragraph (a) of Clause 23.7 (Insolvency proceedings); or

 

	
  

	
(b)

	
creditors’ process described in Clause 23.8 (Creditors’ process), has been taken or, to its knowledge, threatened in relation to it or any member of the Group and none of the circumstances described in Clause 23.6 (Insolvency) applies to it or any member of the Group.

 

  

54

  

 

	
19.9

	
No filing or stamp taxes

 

Under the law of Relevant Jurisdictions 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, notarial, or similar tax or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, except for any filing, registration, recording, enrolling tax or fee or any tax or fee payable in relation to any Transaction Security Document which is referred to in any Legal Opinion and which will be made or paid promptly on or after the date of the relevant Finance Document.

 

	
19.10

	
No default

 

	
  

	
(a)

	
No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation.

 

	
  

	
(b)

	
No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any member of the Group or to which its or any member of the Groups’ assets are subject which might reasonably be expected to have a Material Adverse Effect.

 

	
19.11

	
No misleading information

 

	
  

	
(a)

	
Any written factual information provided by any member of the Group was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.

 

	
  

	
(b)

	
The financial projections contained in the Borrower’s Business Plan and the CME Group Business Plan have been prepared on the basis of recent historical information and on the basis of reasonable assumptions.

 

	
  

	
(c)

	
To the best of its knowledge and belief, nothing has occurred or been omitted from the Borrower’s Business Plan or the CME Group Business Plan and no information has been given or withheld that results in the information contained in the Borrower’s Business Plan or the CME Group Business Plan being untrue or misleading in any material respect.

 

	
19.12

	
Original Financial Statements

 

	
  

	
(a)

	
In relation to Obligors other than the Dutch Obligors, its Original Financial Statements were prepared in accordance with GAAP consistently applied.

 

	
  

	
(b)

	
In relation to Obligors other than the Dutch Obligors, its unaudited Original Financial Statements fairly represent its financial condition and results of operations (consolidated in the case of the Borrower and the Parent) for the relevant period.

 

	
  

	
(c)

	
In relation to Obligors other than the Dutch Obligors, its audited Original Financial Statements (other than the Parent) give a true and fair view of its financial condition and results of operations, and in the case of the Parent, fairly present its financial condition and results of operations (consolidated in the case of the Borrower and the Parent) during the relevant Financial Year.

 

  

55

  

 

	
  

	
(d)

	
There has been no material adverse change in its assets, operations, business or financial condition since the date of the Original Financial Statements.

 

	
  

	
(e)

	
In relation to Obligors other than the Dutch Obligors, its most recent financial statements delivered pursuant to Clause 20.1 (Financial Statements):

 

	
  

	
(i)

	
have been prepared in accordance with GAAP as applied to the Original Financial Statements;

 

	
  

	
(ii)

	
in the case of the Parent, fairly present (if audited) or fairly represent (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate; and

 

	
  

	
(iii)

	
in the case of the Borrower, give a true and fair view of (if audited) or fairly represent (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate.

 

	
  

	
(f)

	
The forecasts supplied under this Agreement were arrived at after careful consideration and have been prepared on the basis of assumptions considered reasonable as at the date they were prepared and supplied.

 

	
  

	
(g)

	
In relation to the Dutch Obligors, its Original Dutch Filings have been prepared in accordance with Dutch statutory requirements.

 

	
19.13

	
Ranking

 

Subject to the Legal Reservations, the Erste Transaction Security and any creditors mandatorily preferred by applicable law, the Transaction Security will have the ranking and priority which it is expressed to have in the Transaction Security Documents.

 

	
19.14

	
Taxation

 

	
  

	
(a)

	
Neither it, nor any other member of the Group is materially overdue in the filing of any Tax returns or in the payment of any amount in respect of Tax of CZK5,000,000 (or its equivalent in any other currency) or more.

 

	
  

	
(b)

	
To the best of its knowledge and belief, no claims or investigations are being made or conducted against it or any other member of the Group with respect to Taxes except (i) those for which adequate reserves have been made and which are being contested in good faith by appropriate proceedings which are being diligently conducted, or (ii) such that a liability of, or claims against it of CZK 10,000,000 (or its equivalent in any other currency) or less has been made.

 

	
19.15

	
Security and Financial Indebtedness

 

	
  

	
(a)

	
No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement.

 

	
  

	
(b)

	
Neither it, nor any member of the Group has any Financial Indebtedness outstanding other than Financial Indebtedness permitted under Clause 22.14(b) (Financial Indebtedness).

 

  

56

  

 

	
19.16

	
Intellectual Property

 

Each member of the Group:

 

	
  

	
(a)

	
is the sole legal and beneficial owner of or has licensed to it on normal commercial terms all the Intellectual Property which is material in the context of its business and which is required by it in order to carry on its business;

 

	
  

	
(b)

	
does not infringe any Intellectual Property of any third party in any respect; and

 

	
  

	
(c)

	
has taken all formal or procedural actions (including payment of fees) required to maintain any material Intellectual Property and any Broadcasting Licences owned or held by it, except where the occurrence of any event or circumstance giving rise to breach of any such representation would neither have nor be reasonably likely to have a material Adverse Effect.

 

	
19.17

	
Financial Year End

 

The end of the Financial Year for each Obligor and for each member of the Group is 31 December.

 

	
19.18

	
Centre of main interests and establishments

 

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

 

	
19.19

	
No adverse consequences

 

	
  

	
(a)

	
Subject to the Legal Reservations, it is not necessary under the laws of its Relevant Jurisdictions:

 

	
  

	
(i)

	
in order to enable any Finance Party to enforce its rights under any Finance Document; or

 

	
  

	
(ii)

	
by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document, that any Finance Party should be licensed, qualified or otherwise entitled to carry on business in its Relevant Jurisdictions.

 

	
  

	
(b)

	
Subject to the Legal Reservations, no Finance Party is or will be deemed to be resident, domiciled or carrying on business in its Relevant Jurisdictions by reason only of the execution, performance and/or enforcement of any Finance Document.

 

  

57

  

 

	
19.20

	
Immunity

 

	
  

	
(a)

	
Neither it, nor any other member of the Group has the benefit of any immunity in respect of itself or its assets or revenues in any jurisdiction, including any immunity in respect of:

 

	
  

	
(i)

	
the giving of any relief by way of injunction or order for specific performance or for the recovery of assets or revenues; or

 

	
  

	
(ii)

	
the issue of any process against its assets or revenues for the enforcement of a judgment or, in an action in rem, for the arrest, detention or sale of any of its assets and revenues.

 

	
  

	
(b)

	
Each Obligor and each other member of the Group is subject to private and commercial law, and has entered into the Finance Documents to which it is party (or will enter into the Finance Documents to which it intends to be party) as private and commercial acts.

 

	
19.21

	
Group Structure Chart and sources and uses statement

 

	
  

	
(a)

	
The Group Structure Chart is true, complete and accurate in all material respects and shows the following information:

 

	
  

	
(i)

	
each Obligor, each other member of the Group, in each case including current name and company registration number, its jurisdiction of incorporation and/or establishment, and in relation to members of the Group only, a list of shareholders and indication of whether the relevant member of the Group is a company with limited liability; and

 

	
  

	
(ii)

	
all minority interests in any member of the Group and any person in which any member of the Group holds shares or equivalent ownership interests in excess of 5 per cent.

 

	
  

	
(b)

	
All Inter-Group Loans and all Intra-Group Loans as at the original date of this Agreement are set out in the Group Structure Chart and have been or will be made in material compliance with all relevant laws and regulations, agreements binding on the Group and/or the CME Group and the requirements of the relevant regulatory authorities.

 

	
  

	
(c)

	
The sources and uses statement delivered pursuant to Clause 4.1 (Initial Conditions Precedent) is true, correct and accurate and includes all the funds flow steps in relation to the Refinancing Transactions occurring on or prior to the Initial Utilisation Date.

 

	
19.22

	
No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency (including, but not limited to, investigative proceedings) which, if adversely determined, would reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any member of the Group except as disclosed to the Agent in writing prior to the original date of this Agreement.

 

  

58

  

 

	
19.23

	
Repetition

 

The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on:

 

	
  

	
(a)

	
the date of each Utilisation Request, on each Utilisation Date and the first day of each Interest Period;

 

	
  

	
(b)

	
in the case of an Additional Guarantor, the day on which the company becomes an Additional Guarantor; and

 

	
  

	
(c)

	
each representation or warranty deemed to be made after the original date of this Agreement shall be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made.

 

	
20.

	
INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 20 remain in force from the original date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

In this Clause 20:

 

“Annual Financial Statements” means the financial statements for a Financial Year delivered pursuant to paragraph (a) of Clause 20.1 (Financial statements).

 

“Quarterly Financial Statements” means the financial statements delivered pursuant to paragraph (b) of Clause 20.1 (Financial statements).

 

	
20.1

	
Financial statements

 

The Borrower shall supply to the Agent:

 

	
  

	
(a)

	
as soon as the same become available, but in any event within 120 days after:

 

	
  

	
(i)

	
the end of the Financial Year ending on 31 December 2010; and

 

	
  

	
(ii)

	
the end of each subsequent Financial Year, the audited consolidated financial statements of the Borrower and the Parent for that Financial Year; and

 

	
  

	
(b)

	
as soon as they are available, but in any event within 75 days after:

 

	
  

	
(i)

	
the end of the Accounting Quarter ending on 30 September 2010 (if and to the extent available); and

 

	
  

	
(ii)

	
the end of each subsequent Accounting Quarter, 

 

the unaudited consolidated financial statements of the Borrower and the Parent for that Accounting Quarter and the Relevant Period ending on or about the last day of that Accounting Quarter (excluding the financial statements for any Accounting Quarter or Relevant Period ending on 31 December).

 

  

59

  

 

	
20.2

	
Compliance Certificate

 

	
  

	
(a)

	
The Borrower shall supply to the Agent, with each set of financial statements of the Borrower delivered pursuant to paragraph (a) or (b) of Clause 20.1 (Financial statements), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 21 (Financial covenants) as at the date as at which those financial statements were drawn up.

 

	
  

	
(b)

	
Each Compliance Certificate shall be signed by two Officers of the Borrower.

 

	
20.3

	
Requirements as to financial statements

 

	
  

	
(a)

	
The Parent and the Borrower shall procure that each set of Annual Financial Statements and Quarterly Financial Statements includes a balance sheet, profit and loss account and cashflow statement.  In addition the Parent and the Borrower shall procure that each set of Annual Financial Statements shall be audited by the Auditors.

 

	
  

	
(b)

	
Each set of financial statements delivered pursuant to Clause 20.1 (Financial statements):

 

	
  

	
(i)

	
shall be certified by an Officer as fairly presenting (in the case of Annual Financial Statements of the Parent for any Financial Year) or as giving true and fair view (in the case of Annual Financial Statements of the Borrower for any Financial Year) or fairly representing (in other cases), in all material respects its financial condition and operations as at the date as at which those financial statements were drawn up and, in the case of the Annual Financial Statements, shall be accompanied by any letter addressed to the management of the relevant company by the Auditors and accompanying those Annual Financial Statements;

 

	
  

	
(ii)

	
shall be prepared using GAAP, and using further accounting practices and financial reference periods consistent with those applied:

 

	
  

	
(A)

	
in the case of the Borrower, in the preparation of the Original Financial Statements and the Borrower’s Business Plan; and

 

	
  

	
(B)

	
in the case of the Parent, in the preparation of its Original Financial Statements, 

 

unless, in relation to any set of financial statements, the Borrower notifies the Agent that there has been a change in GAAP or the accounting practices and it and, if requested by the Agent and subject to sub-paragraph (iii) below, its Auditors (or, if appropriate, the Auditors of the Parent) deliver to the Agent:

 

	
  

	
(C)

	
a description of any change necessary for those financial statements to reflect GAAP or accounting practices upon which the Borrower’s Business Plan or, as the case may be, relevant Original Financial Statements were prepared; and

 

	
  

	
(D)

	
sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 21 (Financial covenants) has been complied with and to make an accurate comparison between the financial position indicated in those financial statements and the Borrower’s Business Plan (in the case of the Borrower only) and/or Original Financial Statements.

 

  

60

  

 

Any reference in this Agreement to any financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Borrower’s Business Plan or, as the case may be, the Original Financial Statements were prepared.

 

	
  

	
(iii)

	
Any requirement for the Auditors (or, if appropriate, the Auditors of the Parent) to deliver the information required to be delivered under sub-paragraphs (ii)(C) and (D) above will be subject to the Agent agreeing any necessary hold harmless or other similar letters with them.

 

	
  

	
(c)

	
If an Event of Default is continuing, the Agent may notify the Borrower or the Parent that it wishes to discuss the financial position of any Obligor with the Auditors and stating the questions or issues that the Agent wishes to discuss. In this event, the Borrower and the Parent must ensure that the Auditors are authorised (at the expense of the Borrower):

 

	
  

	
(i)

	
to discuss the financial position of the relevant Obligor with the Agent on request from the Agent; and

 

	
  

	
(ii)

	
to disclose to the Agent for the Finance Parties any information which the Agent may reasonably request.

 

	
20.4

	
Budget

 

	
  

	
(a)

	
The Borrower shall supply to the Agent in sufficient copies for all the Lenders, as soon as the same becomes available but in any event with 45 days after the start of each of its Financial Years, an annual Budget for that financial year.

 

	
  

	
(b)

	
The Borrower shall ensure that each Budget under paragraph (b) of the definition thereof:

 

	
  

	
(i)

	
is in a form reasonably acceptable to the Agent and includes a projected consolidated profit and loss, balance sheet and cashflow statement for the Group, projected financial covenant calculations and a twelve month cashflow forecast for the CME Group (which for this purpose, shall include the Group); and

 

	
  

	
(ii)

	
is prepared in accordance with GAAP and the accounting practices and financial reference periods applied to financial statements under Clause 20.1 (Financial statements).

 

	
  

	
(c)

	
If the Borrower updates or changes the Budget or the Budget has previously not been approved by the board of directors of the Parent, it shall within not more than 10 business days of the update or change being made or approval by the board of directors of the Parent being granted deliver to the Agent, in sufficient copies for each of the Lenders, such updated or changed or approved Budget together with a written explanation of the main changes in that Budget.

 

  

61

  

 

	
20.5

	
Presentations

 

If the Agent reasonably suspects a Default is continuing or may have occurred or may occur, upon request by the Agent giving reasonable notice, an officer of the Parent must give a presentation to the Finance Parties about the on-going business and financial performance of the CME Group (which for this purpose, shall include the Group) and a statutory executive of the Borrower must give a presentation to the Finance Parties about the on-going business and financial performance of the Group.

 

	
20.6

	
Year-end

 

The Borrower shall procure that:

 

	
  

	
(a)

	
each Financial Year-end of each member of the Group falls on 31 December; and

 

	
  

	
(b)

	
each Accounting Quarter ends on a Quarter Date.

 

	
20.7

	
Information: miscellaneous

 

The Borrower shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

 

	
  

	
(a)

	
copies of all documents dispatched by the Borrower to its shareholders generally (or any class of them) or its creditors generally at the same time as they are dispatched;

 

	
  

	
(b)

	
promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group or the CME Group, and which, if adversely determined, are reasonably likely to have a Material Adverse Effect or which involve a potential or alleged liability exceeding in aggregate at any one time USD 25,000,000 in respect of the Parent and its Subsidiaries or USD 5,000,000 in respect of the Group;

 

	
  

	
(c)

	
promptly upon becoming aware of a Senior Debt Priority Event, details of such event;

 

	
  

	
(d)

	
(if and to the extent prepared) the annual financial statements of Borrower and Markiza, promptly after such preparation;

 

	
  

	
(e)

	
promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Obligors with the terms of any Transaction Security Documents; and

 

	
  

	
(f)

	
promptly, on request, such further information regarding the financial condition, assets or operations of any member of the Group or any other Obligor as any Finance Party (through the Agent) may reasonably request.

 

	
20.8

	
Information: distributions by the Group to the CME Group

 

The Borrower shall supply to the Agent:

 

	
  

	
(a)

	
on or by each Quarter Date, notice in writing (signed by two Officers) of any distribution of any kind (including, without limitation, a loan, repayment of a loan, payment of interest, a dividend, charge, fee or other amount) intended to be made directly or indirectly by a member of the Group to a member of the CME Group (an “Inter-Group Payment”) in the Accounting Quarter commencing on such Quarter Date (a “Relevant Accounting Quarter”), such notice to include:

 

  

62

  

 

	
  

	
(i)

	
the proposed date of such Inter-Group Payment;

 

	
  

	
(ii)

	
the nature of such Inter-Group Payment;

 

	
  

	
(iii)

	
the entity making and the entity receiving such Inter-Group Payment; and

 

	
  

	
(iv)

	
the amount of such Inter-Group Payment.

 

	
  

	
(b)

	
by no later than three Business Days prior to the making of an Inter-Group Payment, notice in writing (signed by an Officer of the Borrower) confirming:

 

	
  

	
(i)

	
the date on which such Inter-Group Payment will be made and the amount;

 

	
  

	
(ii)

	
the entity making and the entity receiving such Inter-Group Payment; and

 

	
  

	
(iii)

	
a reasonable estimate of the amount of cash at hand that will be held by the entity making the payment and by the Group as a whole immediately following the making of such Inter-Group Payment; and

 

	
  

	
(c)

	
if, during a Relevant Accounting Quarter, there is a change to the information provided to the Agent under paragraph (a) above, promptly notice in writing (signed by an Officer of the Borrower) confirming such change.

 

	
20.9

	
Notification of default

 

	
  

	
(a)

	
Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

 

	
  

	
(b)

	
Promptly upon a request by the Agent, the Borrower shall supply to the Agent a certificate signed by two Officers on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

 

	
20.10

	
Use of websites

 

	
  

	
(a)

	
The Agent shall, promptly after the original date of this Agreement, at the cost of the Borrower:

 

	
  

	
(i)

	
appoint a website provider and designate an electronic website (the “Designated Website”) where the Agent will post information required to delivered by the Borrower under this Agreement; and

 

	
  

	
(ii)

	
supply each Lender with the address of and any relevant password specifications for the Designated Website.

 

  

63

  

 

	
  

	
(b)

	
The Borrower will satisfy its obligation under this Agreement to deliver any information (other than any documents or information required to be delivered pursuant to Clauses 4.1 (Initial Conditions Precedent) and 26.2(a)(ii) (Additional Guarantors)) by delivering such information to the Agent in electronic form for posting on to Designated Website provided the information is in a format previously agreed between the Borrower and the Agent; and

 

	
  

	
(c)

	
The Agent shall, promptly upon becoming aware of its occurrence, notify the Borrower if:

 

	
  

	
(i)

	
the Designated Website cannot be accessed due to technical failure; or

 

	
  

	
(ii)

	
the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

	
  

	
(d)

	
Prior to the Agent supplying each Lender with the address of and any relevant password specifications for the Designated Website or if the Agent notifies the Borrower under paragraphs (c)(i) or (c)(ii) above, all information to be provided by the Borrower under this Agreement shall be supplied in paper form (in sufficient copies for all Lenders) unless and until the Agent has supplied the necessary details to each Lender or the Agent and each Lender is satisfied that the circumstances giving rise to the notification under paragraphs (c)(i) or (c)(ii) above are no longer continuing.

 

	
  

	
(e)

	
Without prejudice to (a) above any Lender may request, through the Agent, one paper copy of any information required to be provided:

 

	
  

	
(i)

	
under this Agreement which is posted onto the Designated Website, other than any information required to be provided under Clause 20 (Information Undertakings); and

 

	
  

	
(ii)

	
under Clause 20 (Information Undertakings) which is posted onto the Designated Website, if reasonably required by such Lender in paper copy.

 

The Borrower shall comply with any such request within ten Business Days.

 

	
20.11

	
“Know your customer” checks

 

	
  

	
(a)

	
If:

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
any change in the status of an Obligor after the original date of this Agreement; or

 

	
  

	
(iii)

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

 

  

64

  

 

	
  

	
(b)

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

 

	
  

	
(c)

	
The Borrower shall, by not less than ten Business Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Guarantor pursuant to Clause 26 (Changes to the Obligors).

 

	
  

	
(d)

	
Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Guarantor obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or 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 accession of such Subsidiary to this Agreement as an Additional Guarantor.

 

	
21.

	
FINANCIAL COVENANTS

 

	
21.1

	
Financial definitions

 

In this Agreement:

 

“Accounting Quarter” means each period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

“Borrowings” means, at any time, the aggregate outstanding principal, capital or nominal amount (and any fixed or minimum premium payable on prepayment or redemption) of any indebtedness of members of the Group for or in respect of:

 

	
  

	
(a)

	
moneys borrowed and debit balances at banks or other financial institutions;

 

  

65

  

 

	
  

	
(b)

	
any acceptances under any acceptance credit or bill discount facility (or dematerialised equivalent);

 

	
  

	
(c)

	
any note purchase facility or the issue of bonds (but not Trade Instruments), notes, debentures, loan stock or any similar instrument;

 

	
  

	
(d)

	
any Finance Lease;

 

	
  

	
(e)

	
receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis and meet any requirements for de-recognition under GAAP);

 

	
  

	
(f)

	
any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument (but not, in any case, Trade Instruments) issued by a bank or financial institution in respect of (i) an underlying liability of an entity which is not a member of the Group which liability would fall within one of the other paragraphs of this definition or (ii) any liabilities of any member of the Group relating to any post-retirement benefit scheme;

 

	
  

	
(g)

	
any amount raised by the issue of shares which are redeemable (other than at the option of the issuer) before the Termination Date or are otherwise classified as borrowings under GAAP;

 

	
  

	
(h)

	
any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind the entry into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than one hundred and eighty (180) days after the date of supply;

 

	
  

	
(i)

	
any amount raised under any other transaction (including any forward sale or purchase agreement, sale and sale back or sale and leaseback agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under GAAP; and

 

	
  

	
(j)

	
(without double counting) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above; 

 

deducting any amount raised by any member of the Group under any Intra-Group Loan or any Inter-Group Loan.

 

“Business Acquisition” means the acquisition of a company or any shares or securities therein or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company.

 

“Capital Expenditure” means any expenditure or obligation in respect of expenditure which, in accordance with GAAP, is treated as capital expenditure (and including the capital element of any expenditure or obligation incurred in connection with a Finance Lease).

 

“Cashflow” means, in respect of any Relevant Period, EBITDA for that Relevant Period after:

 

	
  

	
(a)

	
adding the amount of any decrease (and deducting the amount of any increase) in Working Capital for that Relevant Period;

 

  

66

  

 

	
  

	
(b)

	
deducting the amount of any cash payments during that Relevant Period in respect of any Exceptional Items to the extent taken into account in calculating EBITDA for any Relevant Period;

 

	
  

	
(c)

	
adding the amount of any cash receipts during that Relevant Period in respect of any Tax rebates or credits and deducting the amount actually paid or due and payable in respect of Taxes during that Relevant Period by any member of the Group;

 

	
  

	
(d)

	
deducting the amount of any Capital Expenditure actually made during that Relevant Period by any member of the Group and the aggregate of any cash consideration paid for, or the cash cost of, any Business Acquisitions and the amount of any Joint Venture Investments in cash; and

 

	
  

	
(e)

	
deducting the amount of any cash costs of Pension Items during that Relevant Period to the extent not taken into account in establishing EBITDA.

 

“Cashflow Cover” means the ratio of Cashflow to Debt Service and Inter-Group Flows in respect of any Relevant Period.

 

“Current Assets” means the aggregate (on a consolidated basis) of all inventory, work in progress, trade and other receivables of each member of the Group including prepayments in relation to operating items and sundry debtors maturing within twelve months from the date of computation but excluding amounts in respect of:

 

	
  

	
(a)

	
receivables in relation to Tax;

 

	
  

	
(b)

	
exceptional items and other non-operating items;

 

	
  

	
(c)

	
insurance claims;

 

	
  

	
(d)

	
any interest owing to any member of the Group; and

 

	
  

	
(e)

	
any amounts owed to any member of the Group under any Intra-Group Loan or any Inter-Group Loan.

 

“Current Liabilities” means the aggregate (on a consolidated basis) of all liabilities (including trade creditors, accruals and provisions) of each member of the Group falling due within twelve months from the date of computation but excluding amounts in respect of:

 

	
  

	
(a)

	
liabilities for Borrowings and Finance Charges, and any amounts in respect of any Intra-Group Loan or any Inter-Group Loan;

 

	
  

	
(b)

	
liabilities for Tax;

 

	
  

	
(c)

	
Exceptional Items and other non-operating items;

 

	
  

	
(d)

	
insurance claims; and

 

	
  

	
(e)

	
liabilities in relation to dividends declared but not paid by any member of the Group in favour of any person which is not a member of the Group.

 

  

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“Debt Service and Inter-Group Flows” means, in respect of any Relevant Period, the aggregate of:

 

	
  

	
(a)

	
Finance Charges for that Relevant Period;

 

	
  

	
(b)

	
any cash dividends or distributions made by a member of the Group to a member of the CME Group or any payments (including any loans or advances made, repayment and/or prepayment of principal amounts and payment of interest) under any Inter-Group Loan by a member of the Group in respect of that Relevant Period but excluding any Note Payments;

 

	
  

	
(c)

	
the aggregate of all scheduled and mandatory repayments of Borrowings falling due during that Relevant Period but excluding:

 

	
  

	
(i)

	
any amounts falling due under any overdraft or the Facility which are available for simultaneous redrawing according to the terms of such overdraft or this Agreement;

 

	
  

	
(ii)

	
any such obligations owed to the Borrower or another member of the Group; and

 

	
  

	
(iii)

	
any prepayment of the Facility which is required to be made under the terms of this Agreement; and

 

	
  

	
(d)

	
the amount of the capital element of any payments in respect of that Relevant Period payable under any Finance Lease entered into by the Borrower, and so that no amount shall be included more than once.

 

“EBIT” means, in respect of any Relevant Period, the consolidated operating profit of the Group before taxation (excluding the results from discontinued operations):

 

	
  

	
(a)

	
before deducting any Finance Charges whether paid, payable or capitalised by any member of the Group in respect of that Relevant Period;

 

	
  

	
(b)

	
not including any accrued interest owing to any member of the Group;

 

	
  

	
(c)

	
before taking into account any Exceptional Items;

 

	
  

	
(d)

	
after deducting the amount of any profit (or adding back the amount of any loss) of any member of the Group which is attributable to minority interests;

 

	
  

	
(e)

	
before taking into account any unrealised gains or losses on any derivative instrument (other than any derivative instrument which is accounted for on a hedge accounting basis);

 

	
  

	
(f)

	
before taking into account any Pension Items; and

 

	
  

	
(g)

	
excluding the charge to profit represented by the expensing of stock options; 

 

in each case, to the extent added, deducted or taken into account, as the case may be, for the purposes of determining operating profits of the Group before taxation.

 

  

68

  

 

“EBITDA” means, in respect of any Relevant Period, EBIT for that Relevant Period after adding back any amount attributable to the amortisation, or depreciation or impairment of assets of members of the Group.  For the avoidance of doubt, any losses or gains arising as a result of any purchase by a member of the Group of any Financial Indebtedness owing by the Group shall not be included in the calculation of EBITDA.

 

“Exceptional Items” means any material items of an unusual or non-recurring nature which represent gains or losses including those arising on:

 

	
  

	
(a)

	
the restructuring of the activities of an entity and reversals of any provisions for the cost of restructuring;

 

	
  

	
(b)

	
disposals, revaluations or impairment of non-current assets; and

 

	
  

	
(c)

	
disposals of assets associated with discontinued operations.

 

“Finance Charges” means, for any Relevant Period, the aggregate amount of the accrued interest, commissions, fees, discounts, prepayment fees, premiums or charges and other finance payments in respect of Borrowings whether paid, payable or capitalised by any member of the Group (calculated on a consolidated basis) in respect of that Relevant Period:

 

	
  

	
(a)

	
including any upfront fees or costs which are included as part of the effective interest rate adjustments;

 

	
  

	
(b)

	
including the interest (but not the capital) element of payments in respect of Finance Leases;

 

	
  

	
(c)

	
including any commission, fees, discounts and other finance payments payable by (and deducting any such amounts payable to) any member of the Group under any interest rate hedging arrangement;

 

	
  

	
(d)

	
excluding any interest cost or expected return on plan assets in relation to any post-employment benefit schemes; and

 

	
  

	
(e)

	
taking no account of any unrealised gains or losses on any derivative instruments other than any derivative instruments which are accounted for on a hedge accounting basis; 

 

in each case so that no amount shall be added (or deducted) more than once.

 

“Finance Lease” means any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease.

 

“Financial Year” means the annual accounting period of the Group ending on or about 31 December in each year.

 

“Interest Cover” means the ratio of EBITDA to Finance Charges in respect of any Relevant Period.

 

“Note Payment” means any distribution in cash, Inter-Group Loan or repayment of an existing Inter-Group Loan using the net proceeds of the Notes (after repayment of all amounts due under the Erste Facility in full) and not exceeding EUR60,000,000 (or its equivalent) in aggregate, made by the Borrower directly or indirectly to the Parent.

 

  

69

  

 

“Pension Items” means any income or charge attributable to a post-employment benefit scheme other than the current service costs and any past service costs and curtailments and settlements attributable to the scheme.

 

“Quarter Date” means each of 31 March, 30 June, 30 September and 31 December.

 

“Relevant Period” means each period of twelve months ending on or about the last day of the Financial Year and each period of twelve months ending on or about the last day of each Accounting Quarter.

 

“Senior Debt” means, at any date, the sum of:

 

	
  

	
(a)

	
the aggregate of the Loans outstanding on that date;

 

	
  

	
(b)

	
the aggregate outstanding principal amount of the Notes on that date;

 

	
  

	
(c)

	
the aggregate Financial Indebtedness outstanding at that date under the Factoring Facility Agreement; and

 

	
  

	
(d)

	
the aggregate amount of any other Permitted Financial Indebtedness or Financial Indebtedness permitted under paragraphs (b)(i) and (b)(ii) of Clause 22.14 (Financial Indebtedness) outstanding at that date but excluding Inter-Group Loans and any marking to market of Treasury Transactions.

 

“Senior Leverage” means, in respect of any Relevant Period, the ratio of Senior Debt on the last day of that Relevant Period to EBITDA in respect of that Relevant Period.

 

“Trade Instruments” means any performance bonds, advance payment bonds or documentary letters of credit issued in respect of the obligations of any member of the Group arising in the ordinary course of trading of that member of the Group.

 

“Working Capital” means, on any date, Current Assets less Current Liabilities.

 

	
21.2

	
Financial conditions

 

The Borrower shall ensure that:

 

	
  

	
(a)

	
Cashflow Cover:  Cashflow Cover in respect of any Relevant Period shall not be less than 1.15:1.

 

	
  

	
(b)

	
Interest Cover:  Interest Cover:

 

	
  

	
(i)

	
in respect of the Relevant Periods ending on or prior to 31 December 2011 shall not be less than 4.5:1;

 

	
  

	
(ii)

	
in respect of the Relevant Periods ending on or about 31 March, 30 June, 30 September and 31 December 2012 shall not be less than 4.75:1;

 

  

70

  

 

	
  

	
(iii)

	
in respect of the Relevant Period ending on or about 31 March 2013 and each subsequent Relevant Period shall not be less than 5.00:1

 

	
  

	
(c)

	
Senior Leverage:  Senior Leverage:

 

	
  

	
(i)

	
in respect of the Relevant Periods ending on or prior to 30 June 2011 shall not exceed 2.75:1;

 

	
  

	
(ii)

	
in respect of the Relevant Periods ending on or about 30 September and 31 December 2011 shall not exceed 2.5:1; and

 

	
  

	
(iii)

	
in respect of the Relevant Period ending on or about 31 March 2012 and each subsequent Relevant Period shall not exceed 2.25:1.

 

	
21.3

	
Covenant testing

 

	
  

	
(a)

	
The financial covenants set out in Clause 21.2 (Financial conditions) shall be calculated in accordance with GAAP and tested on a consolidated basis by reference to each of the consolidated financial statements of the Borrower (including, for the avoidance of doubt, Markiza) delivered pursuant to paragraphs (a) and (b) of Clause 20.1 (Financial Statements) and/or each Compliance Certificate delivered pursuant to Clause 20.2 (Compliance Certificate).

 

	
  

	
(b)

	
For the purpose of calculating the financial covenants set out in Clause 21.2 (Financial conditions) for each of the Relevant Periods ending on a date which is less than 12 months after the original date of this Agreement:

 

	
  

	
(i)

	
Finance Charges shall be annualised by reference to the Finance Charges as disclosed in the Compliance Certificates for the Accounting Quarters ending after the original date of this Agreement; and

 

	
  

	
(ii)

	
there shall be excluded repayment of the Erste Facility.

 

	
  

	
(c)

	
For the purpose of calculating the financial covenants set out in Clause 21.2 (Financial conditions), there shall be excluded in determining Debt Service and Inter-Group Flows, for the Relevant Periods ending on or about 31 December 2010, 31 March 2011 and 30 June 2011, repayment by the Borrower on:

 

	
  

	
(i)

	
22 January 2010 of CZK 1,450,000,000 of its indebtedness under:

 

	
  

	
(A)

	
the CZK 1,200,000,000 facility agreement No. 2644/05/LCD dated 27 October 2005 (as amended from time to time), entered into with Česká spořitelna, a.s.; and 

 

	
  

	
(B)

	
the CZK 250,000,000 facility agreement No. 2645/05/LCD dated 27 October 2005 (as amended from time to time), entered into with Česká spořitelna, a.s.; 

 

	
  

	
(ii)

	
25 January 2010 of CZK 1,050,000,000 of outstanding principal under the CET Loan Agreement;

 

  

71

  

 

	
  

	
(iii)

	
23 February 2010 of CZK 300,000,000 of outstanding principal under the CET Loan Agreement; and

 

	
  

	
(iv)

	
11 June 2010 of CZK 250,000,000 of outstanding principal under the CET Loan Agreement.

 

	
  

	
(d)

	
For the purpose of calculating the financial covenants set out in Clause 21.2 (Financial conditions):

 

	
  

	
(i)

	
there shall be included in determining EBITDA for any Relevant Period the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, mutatis mutandis) for the Relevant Period of any company, business or undertaking that is acquired by an Obligor and is not subsequently sold, transferred or otherwise disposed of during such Relevant Period; and

 

	
  

	
(ii)

	
there shall be excluded in determining EBITDA for any Relevant Period the earnings before interest, tax depreciation and amortisation (calculated on the same basis as EBITDA, mutatis mutandis) of any company, business or undertaking that is sold, transferred or otherwise disposed by an Obligor during such period.

 

	
22.

	
GENERAL UNDERTAKINGS

 

The undertakings in this Clause 22 remain in force from the original date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

	
22.1

	
Authorisations

 

Each Obligor shall promptly:

 

	
  

	
(a)

	
obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

	
  

	
(b)

	
supply certified copies to the Agent of, any Authorisation (including, without limitation, the Broadcasting Licences) required under any law or regulation of a Relevant Jurisdiction to:

 

	
  

	
(i)

	
enable it to perform its obligations under the Finance Documents;

 

	
  

	
(ii)

	
ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document (subject to any necessary translation of such Finance Documents and notarization of any such translation); and

 

	
  

	
(iii)

	
carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

  

72

  

 

	
22.2

	
Compliance with laws

 

Each Obligor shall (and the Borrower shall ensure that each member of the Group will) comply in all respects with all laws to which it is subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

	
22.3

	
Taxation

 

	
  

	
(a)

	
The Borrower shall (and shall ensure that each member of the Group will) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

	
  

	
(i)

	
such payment is being contested in good faith;

 

	
  

	
(ii)

	
adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the Agent under Clause 20.1 (Financial statements); and

 

	
  

	
(iii)

	
such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

	
  

	
(b)

	
No member of the Group may change its residence for Tax purposes.

 

Restrictions on business focus

 

	
22.4

	
Merger

 

No member of the Group shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction other than a Permitted Transaction.

 

	
22.5

	
Change of business

 

The Borrower shall procure that no substantial change is made to the general nature of the business of the Group, taken as a whole from that carried on at the original date of this Agreement other than any reasonable extension of such business or any business reasonably related, ancillary or complementary thereto.

 

	
22.6

	
Acquisitions

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will):

 

	
  

	
(i)

	
acquire a company or other entity or any shares or securities or a business or undertaking (or, in each case, any interest in any of them); or

 

	
  

	
(ii)

	
incorporate a company.

 

	
  

	
(b)

	
Paragraph (a) above does not apply to an acquisition of a company, or other entity, or of shares, securities or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company:

 

	
  

	
(i)

	
where:

 

  

73

  

 

	
  

	
(A)

	
no Event of Default is continuing on the closing date for the acquisition or would occur as a result of the acquisition;

 

	
  

	
(B)

	
in the case of acquisition or incorporation of a company or partnership, it is incorporated with limited liability or is a limited liability partnership and it is (or in the case of a newly incorporated entity, will be) engaged in a business substantially the same as that carried on by the Group;

 

	
  

	
(C)

	
the Total Purchase Price for such acquisition, when aggregated with the Total Purchase Price for any other acquisitions under this paragraph (b)(i) does not in any Financial Year of the Borrower exceed CZK125,000,000 or its equivalent subject to Clause 22.21 (Baskets); and

 

	
  

	
(D)

	
in relation to an acquisition outside the European Union (a “Non EU Acquisition”), the Total Purchase Price for such Non EU Acquisition when aggregated with the Total Purchase Price for all other Non EU Acquisitions and all Joint Venture Investments outside the European Union does not exceed CZK375,000,000 or its equivalent over the life of the Facility.

 

	
  

	
(ii)

	
which is a Permitted Acquisition or a Permitted Transaction.

 

	
22.7

	
Joint ventures

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will):

 

	
  

	
(i)

	
enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

 

	
  

	
(ii)

	
transfer any assets or lend to or guarantee or give an indemnity for or give Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

 

	
  

	
(b)

	
Paragraph (a) above does not apply to any acquisition of (or agreement to acquire) any interest in a Joint Venture or transfer of assets (or agreement to transfer assets) to a Joint Venture or loan made to or guarantee given in respect of the obligations of a Joint Venture if:

 

	
  

	
(i)

	
no Event of Default is continuing and:

 

	
  

	
(A)

	
the Joint Venture is engaged in a business substantially the same as that carried on by the Group or any reasonable extension of such business;

 

	
  

	
(B)

	
the aggregate Joint Venture Investment in any Financial Year of the Borrower in all Joint Ventures does not exceed CZK125,000,000 or its equivalent subject to Clause 22.21 (Baskets); and

 

	
  

	
(C)

	
in relation to a Joint Venture outside the European Union, the aggregate of all Joint Venture Investments outside the European Union and the Total Purchase Price for all Non EU Acquisitions does not exceed CZK CZK375,000,000 or its equivalent over the life of the Facility;

 

  

74

  

 

	
  

	
(ii)

	
such transaction is permitted under paragraph (b) (i) of Clause 22.6 (Acquisitions) or is a Permitted Acquisition or a Permitted Disposal or is otherwise permitted by Clause 22.10 (Disposals), or is a Permitted Loan or is otherwise permitted by Clause 22.12 (Loans or Credit) or is a transaction described in paragraph (e) of Permitted Transactions.

 

	
22.8

	
Pari passu ranking

 

Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

	
22.9

	
Negative pledge

 

In this Clause 22.9, “Quasi-Security” means an arrangement or transaction described in paragraph (b) below.

 

Except as permitted under paragraph (c) below:

 

	
  

	
(a)

	
The Borrower shall not (and shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

 

	
  

	
(b)

	
The Borrower shall not (and shall ensure that no other member of the Group will):

 

	
  

	
(i)

	
sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by a member of the Group;

 

	
  

	
(ii)

	
sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

	
  

	
(iii)

	
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

 

	
  

	
(iv)

	
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.

 

	
  

	
(c)

	
Paragraphs (a) and (b) above do not apply to any Security or (as the case may be) Quasi-Security, which is:

 

	
  

	
(i)

	
Permitted Security; or

 

	
  

	
(ii)

	
a Permitted Transaction.

 

  

75

  

 

	
22.10

	
Disposals

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will) enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

	
  

	
(b)

	
Paragraph (a) above does not apply to any sale, lease, transfer or other disposal:

 

	
  

	
(i)

	
of assets made while no Event of Default is continuing, where the higher of the market value and net consideration receivable (when aggregated with the higher of the market value and net consideration received or receivable for any other sale, lease, licence, transfer or other disposal made under this paragraph (b)(i)) does not in any Financial Year of the Borrower, exceed CZK 75,000,000 or its equivalent, subject (in relation to any asset which is the subject of the Transaction Security) to the provisions of the Transaction Security Documents;

 

	
  

	
(ii)

	
of assets to a member of the Group or a member of the CME Group made while no Event of Default is continuing, where the higher of the market value and net consideration receivable (when aggregated with the higher of the market value and net consideration received or receivable for any other sale, lease, licence, transfer or other disposal made under this paragraph (b)(ii)) does not in any Financial Year of the Borrower, exceed CZK 200,000,000 or its equivalent, subject (in relation to any asset which is the subject of the Transaction Security) to the provisions of the Transaction Security Documents; or

 

	
  

	
(iii)

	
which is a Permitted Disposal or a Permitted Transaction;

 

	
22.11

	
Arm’s length basis

 

	
  

	
(a)

	
Except as permitted by paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will) enter into any transaction with any person other than a member of the Group except on arm’s length terms.

 

	
  

	
(b)

	
The following transactions shall not be a breach of this Clause 22.11:

 

	
  

	
(i)

	
any cash dividends, redemption of capital or distributions made by a member of the Group to a member of the Group or CME Group;

 

	
  

	
(ii)

	
Inter-Group Loans or Intra-Group Loans permitted under Clause 22.12 (Loans or credit);

 

	
  

	
(iii)

	
fees, costs and expenses payable under the Finance Documents in the amounts set out in the Finance Documents delivered to the Agent under Clause 4.1 (Initial conditions precedent) or agreed by the Agent;

 

	
  

	
(iv)

	
any Permitted Transaction; and

 

	
  

	
(v)

	
payments in respect of management services, administration or other similar fees and charges invoiced to or by any member of the Group by or to any Affiliate of any member of the Group where the aggregate of such payments made by the members of the Group does not exceed CZK 100,000,000 (or its equivalent in any currency) in any financial year, provided that promptly upon request by the Agent, the Borrower shall provide to the Agent a reasonably detailed summary (including, without limitation, any information regarding such payments requested by, or actually provided by the members of the Group to their respective Auditors) of all such payments made under this paragraph (iv) during the period set out in the request of the Agent (such period not to include any period for which the relevant information has already been provided in form and substance satisfactory to the Agent by the Borrower in accordance with this paragraph (iv).

 

  

76

  

 

	
22.12

	
Loans or credit

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will) be a creditor in respect of any Financial Indebtedness.

 

	
  

	
(b)

	
Paragraph (a) above does not apply to:

 

	
  

	
(i)

	
a loan made by a member of the Group while no Event of Default is continuing, which when aggregated with the principal amount of any other loans made under this paragraph does not in any Financial Year of the Borrower, exceed CZK125,000,000 or its equivalent subject to Clause 22.21 (Baskets); or

 

	
  

	
(ii)

	
a Permitted Loan or a Permitted Transaction.

 

	
22.13

	
No Guarantees or indemnities

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will) incur or allow to remain outstanding any guarantee or guarantees in respect of any obligation of any person where the maximum aggregate contingent liability of the Group under all such guarantees exceeds CZK125,000,000 at any time.

 

	
  

	
(b)

	
Paragraph (a) does not apply to a guarantee which is:

 

	
  

	
(i)

	
a Permitted Guarantee; or

 

	
  

	
(ii)

	
a Permitted Transaction.

 

	
22.14

	
Financial Indebtedness

 

	
  

	
(a)

	
Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no other member of the Group will) incur or allow to remain outstanding any Financial Indebtedness.

 

	
  

	
(b)

	
Paragraph (a) above does not apply to Financial Indebtedness which is:

 

	
  

	
(i)

	
incurred while no Event of Default is continuing, the outstanding amount of which does not exceed CZK125,000,000 (or its equivalent) in aggregate for the Group in any Financial Year of the Borrower;

 

  

77

  

 

	
  

	
(ii)

	
incurred while no Event of Default is continuing under finance or capital leases provided that the aggregate capital value of all such items so leased under outstanding leases by members of the Group does not exceed CZK62,500,000 (or its equivalent in other currencies) at any time; or

 

	
  

	
(iii)

	
Permitted Financial Indebtedness or a Permitted Transaction.

 

Miscellaneous

 

	
22.15

	
Access

 

If an Event of Default is continuing, each Obligor shall (and the Borrower shall ensure that each member of the Group will) permit the Agent and/or the Security Agent and/or accountants or other professional advisers and contractors of the Agent or Security Agent free access at all reasonable times and on reasonable notice at the risk and cost of the Obligor or the Borrower to (a) the premises, assets, books, accounts and records of each member of the Group and (b) meet and discuss matters with management of the CME Group and the Group.

 

	
22.16

	
Intellectual Property

 

	
  

	
(a)

	
The Borrower shall (and shall ensure that each other member of the Group will):

 

	
  

	
(i)

	
preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of members of the Group;

 

	
  

	
(ii)

	
use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property;

 

	
  

	
(iii)

	
make registrations and pay all registration fees and taxes necessary to maintain the Intellectual Property in full force and effect and record its interest in that Intellectual Property;

 

	
  

	
(iv)

	
not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any relevant member of the Group to use such property; and

 

	
  

	
(v)

	
not discontinue the use of the Intellectual Property, 

 

where failure to do so, in the case of paragraphs (i), (ii) and (iii) above, or, in the case of paragraphs (iv) and (v) above, such use, permission to use, omission or discontinuation, is reasonably likely to have a Material Adverse Effect.

 

	
  

	
(b)

	
Failure to comply with any part of paragraph (a) above, shall not be a breach of this Clause 22.16 to the extent that any dealing with Intellectual Property which would otherwise be a breach of paragraph (a) above is contemplated by the definition of Permitted Transaction.

 

  

78

  

 

	
22.17

	
Amendments

 

	
  

	
(a)

	
No Obligor shall (and the Borrower shall ensure that no member of the Group will) amend, vary, novate, supplement, supersede, waive or terminate the constitutional documents of an Obligor or a member of the Group, any Inter-Group Loan Agreement, the Notes Documents or any other document delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent).

 

	
  

	
(b)

	
Paragraph (a) does not apply to any amendment, variation, novation, supplement, superseding, waiver or termination which:

 

	
  

	
(i)

	
does not, or could not reasonably be expected to materially and adversely affect the interests of the Lenders; or

 

	
  

	
(ii)

	
is not prohibited by the Intercreditor Agreement.

 

	
22.18

	
Obligors

 

	
  

	
(a)

	
The Borrower shall ensure that at all times after the original date of this Agreement, the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause 21.1 (Financial definitions)) of the Obligors and the aggregate gross assets, the aggregate net assets and aggregate turnover of the Obligors (in each case calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) represents not less than 85 per cent of EBITDA (as defined in Clause 21.1 (Financial definitions)) of the Group or consolidated gross assets, consolidated net assets and consolidated turnover of the Group respectively.

 

	
  

	
(b)

	
The Borrower need only perform its obligations under paragraph (a) above if it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s Officers or other management.  Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability.  This includes agreeing to a limit on the amount guaranteed.  The Agent may (but shall not be obliged to) agree to such a limit if, in its opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

	
22.19

	
Further assurance

 

	
  

	
(a)

	
Each Obligor providing Transaction Security shall (and the Borrower shall procure that each member of the Group will) promptly do all such acts (including payment of all documentary, registration, filing or other relevant costs or taxes) execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in favour of the Security Agent or its nominee(s)):

 

	
  

	
(i)

	
to perfect the Security created or intended to be created under or evidenced by the Transaction Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;

 

  

79

  

 

	
  

	
(ii)

	
to confer on the Security Agent or confer on the Finance Parties Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security purported to be conferred by or pursuant to the Transaction Security Documents; and/or

 

	
  

	
(iii)

	
to facilitate the realisation of the assets which are, or are purported to be, the subject of the Transaction Security.

 

	
  

	
(b)

	
Each Obligor providing Transaction Security shall (and the Borrower shall procure that each member of the Group shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

 

	
22.20

	
Bank Accounts

 

	
  

	
(a)

	
The Borrower shall ensure that all banking accounts of the Borrower are:

 

	
  

	
(i)

	
opened and maintained with:

 

	
  

	
(A)

	
the Agent, Česká spořitelna, a.s., Slovenská sporiteľňa, a.s. or another Finance Party (at the time of opening of the accounts) or other bank approved in writing by the Agent; or

 

	
  

	
(B)

	
in relation to its banking accounts with UniCredit Bank Czech Republic, a.s. with account numbers 2102970437/2700, 2102970453/2700 or  2102970461/2700 only, UniCredit Bank Czech Republic, a.s.; and

 

	
  

	
(ii)

	
subject to valid Security under the Transaction Security Documents.

 

	
  

	
(b)

	
Paragraph (a) does not apply to the following cash pooling accounts opened by the Borrower and maintained with Bank Mendes Gans N.V.:

 

	
  

	
(i)

	
NL80BKMG0261081985 (in CZK);

 

	
  

	
(ii)

	
NL96BKMG0261092367 (in EUR); and

 

	
  

	
(iii)

	
NL70BKMG02611022923, 

 

provided that the aggregate of the balances deposited in such accounts by the Borrower does not exceed EUR10,000,000 or its equivalent at any time.

 

	
22.21

	
Baskets

 

If in any Financial Year the aggregate amount of any of the baskets set in paragraph (b)(i)(C) of Clause 22.6 (Acquisitions), paragraph (b)(i)(B) of Clause 22.7 (Joint ventures) or paragraph (b)(i) of Clause 22.12 (Loans or credit) (each a “Permitted Basket”) which is utilised by the Group is less than the relevant basket originally available for that Financial Year (without any carry forward) (the difference being referred to as the “Available Amount”), then the maximum amount of that Permitted Basket for the immediately following Financial Year shall be increased by an amount equal to the Available Amount.

 

  

80

  

 

	
23.

	
EVENTS OF DEFAULT

 

Each of the events or circumstances set out in this Clause 23 is an Event of Default (save for Clause 23.19 (Acceleration)).

 

	
23.1

	
Non-payment

 

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable unless:

 

	
  

	
(a)

	
its failure to pay is caused by:

 

	
  

	
(i)

	
administrative or technical error; or

 

	
  

	
(ii)

	
a Disruption Event; and

 

	
  

	
(b)

	
payment is made within 3 Business Days of its due date.

 

	
23.2

	
Financial covenants and other obligations

 

	
  

	
(a)

	
Any requirement of Clause 21 (Financial covenants) is not satisfied or an Obligor does not comply with the provisions of paragraph (b) of Clause 20.8 (Information: distributions by the Group to the CME Group).

 

	
  

	
(b)

	
An Obligor does not comply with the provisions of Clauses 20.1 (Financial Statements), 20.2 (Compliance Certificate), 20.4 (Budget) or paragraphs (a) or (c) of 20.8 (Information: distributions by the Group to the CME Group).

 

	
  

	
(c)

	
An Obligor does not comply with any provision of any Transaction Security Document.

 

	
  

	
(d)

	
No Event of Default under paragraph (b) above will occur if the failure to comply is capable of remedy and is remedied within five Business Days, of the earlier of (A) the Agent giving notice to the Borrower or the relevant Obligor and (B) the Borrower becoming aware of the failure to comply.

 

	
23.3

	
Other obligations

 

	
  

	
(a)

	
An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 23.1 (Non-payment) and Clause 23.2 (Financial covenants and other obligations)).

 

	
  

	
(b)

	
No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within twenty Business Days, of the earlier of (A) the Agent giving notice to the Borrower or the relevant Obligor and (B) the Borrower becoming aware of the failure to comply.

 

  

81

  

 

	
23.4

	
Misrepresentation

 

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made unless the circumstances giving rise to that misrepresentation are capable of remedy and are remedied within twenty Business Days of the earlier of the Agent giving notice to the Borrower or Obligor or the Obligor becoming aware of the misrepresentation.

 

	
23.5

	
Cross default

 

	
  

	
(a)

	
Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally applicable grace period.

 

	
  

	
(b)

	
Any Financial Indebtedness of any member of the 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 of any member of the Group is cancelled or suspended by a creditor of any member of the Group as a result of an event of default (however described).

 

	
  

	
(d)

	
Any creditor (other than a creditor who is a member of the Group or the CME Group) of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described).

 

	
  

	
(e)

	
An event of default (howsoever described) occurs under the Notes Documents.

 

	
  

	
(f)

	
Any Financial Indebtedness of the Parent, Central European Media Enterprises N.V. and/or CME Media Enterprises B.V. is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (howsoever described).

 

	
  

	
(g)

	
Any Financial Indebtedness of the Parent is not paid when due nor within any originally applicable grace period.

 

	
  

	
(h)

	
No Event of Default will occur under paragraphs (a) to (d) of this Clause 23.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than CZK125,000,000 (or its equivalent in any other currency or currencies).

 

	
  

	
(i)

	
No Event of Default will occur under paragraphs (f) and (g) of this Clause 23.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (f) and (g) above is less than USD25,000,000 (or its equivalent in any other currency or currencies).

 

  

82

  

 

	
23.6

	
Insolvency

 

	
  

	
(a)

	
Any Obligor or Material Company is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

	
  

	
(b)

	
Any Obligor or Material Company is insolvent in its jurisdiction of incorporation.

 

	
  

	
(c)

	
A moratorium is declared in respect of any indebtedness of an Obligor or any Material Company.

 

	
23.7

	
Insolvency proceedings

 

Any corporate action, legal proceedings or other procedure or step is taken in relation to:

 

	
  

	
(a)

	
the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of an Obligor or Material Company other than a solvent liquidation or reorganisation of any member of the Group which is not an Obligor;

 

	
  

	
(b)

	
a composition, compromise, assignment or arrangement with any creditor of an Obligor or Material Company;

 

	
  

	
(c)

	
the appointment of a liquidator (other than in respect of a solvent liquidation of a member of the Group which is not an Obligor), receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of an Obligor or Material Company or any of its material assets; or

 

	
  

	
(d)

	
enforcement of any Security over any material assets of an Obligor or Material Company, 

 

or any analogous procedure or step is taken in any jurisdiction.

 

This Clause 23.7 shall not apply to any petition which is frivolous or vexatious and is discharged, stayed or dismissed within thirty Business Days of commencement.

 

	
23.8

	
Creditors’ process

 

Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any material asset or assets of an Obligor and is not discharged, stayed or dismissed within thirty Business Days.

 

	
23.9

	
Unlawfulness and invalidity

 

	
  

	
(a)

	
It is or becomes unlawful for an Obligor to perform any of its material obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Transaction Security Documents ceases to be effective.

 

  

83

  

 

	
  

	
(b)

	
Any obligation or obligations of any Obligor 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.

 

	
  

	
(c)

	
Subject to the Legal Reservations, any Finance Document ceases to be in full force and effect or any Transaction Security ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective, in each case in any material respect.

 

	
23.10

	
Similar events elsewhere

 

Except for a Permitted Transaction, there occurs in relation to any Obligor or Material Company or any of its assets in any country or territory in which it is incorporated or carries on business or to the jurisdiction of whose courts it has submitted, any event which corresponds in that country or territory with any of those mentioned in Clause 23.6 (Insolvency) or 23.7 (Insolvency Proceedings).

 

	
23.11

	
Cessation of business

 

Any Obligor or Material Company (that has become a Material Company pursuant to paragraph (b) of the definition of Material Company) 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 permitted under this Agreement

 

	
23.12

	
Change of ownership

 

After the original date of this Agreement, an Obligor that is a member of the Group (other than the Borrower) ceases to be a Subsidiary of the Borrower except as a result of a Change of Control.

 

	
23.13

	
Expropriation

 

The authority or ability of any Obligor to conduct its business is wholly or substantially curtailed or limited by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority in relation to any such Obligor or any of its material assets.

 

	
23.14

	
Repudiation and rescission of agreements

 

An Obligor rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or any of the Transaction Security to which it is a Party or evidences an intention in writing to rescind or repudiate a Finance Document or any Transaction Security to which it is a Party.

 

	
23.15

	
Judgments and arbitral awards

 

Any Obligor or any member of the Group fails to satisfy any final and non-appealable judgment or arbitral award against it or its assets made by any competent court or tribunal to which it or its assets is or are subject, where the amount of relief from, and/or a liability (including, without limitation, any pre- and/or post-judgment interest but excluding any award in respect of costs or relevant proceedings) under such judgment or award, (i) of the CME Group as a whole is at any one time in aggregate at least USD 25,000,000 (or its equivalent in any currency), or (ii) of any member of the Group is at any time in aggregate at least USD 7,500,000 (or its equivalent in any currency).

 

  

84

  

 

	
23.16

	
Material adverse change

 

Any event or circumstance occurs which the Majority Lenders believe has or is likely to have a Material Adverse Effect.

 

	
23.17

	
Termination, revocation or transfer of Broadcasting Licences

 

A Broadcasting Licence is terminated or revoked or a decision is issued by the Czech Media Council or the Slovak Media Council which in the reasonable opinion of the Majority Lenders is reasonably likely to directly result in the revocation or termination of any Broadcasting Licence.

 

The Borrower ceases to be the sole holder or owner of the Broadcasting Licence referred to in paragraph (b) of the definition “Broadcasting Licence”.

 

Markiza ceases to be the sole holder or owner of the Broadcasting Licence referred to in paragraph (a) of the definition “Broadcasting Licence”.

 

	
23.18

	
Existing Intercreditor Agreement

 

Any Finance Party receives an Enforcement Notice (as defined therein) under the Existing Intercreditor Agreement.

 

	
23.19

	
Acceleration

 

	
  

	
(a)

	
Subject to paragraph (b) below, on and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower:

 

	
  

	
(i)

	
cancel the Total Commitments at which time they shall immediately be cancelled;

 

	
  

	
(ii)

	
declare that all or part of the Utilisations, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable;

 

	
  

	
(iii)

	
declare that all or part of the Utilisations be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; or

 

	
  

	
(iv)

	
exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

 

	
  

	
(b)

	
Notwithstanding the provisions of paragraph (a) above, if an Event of Default occurs under Clause 23.18 (Existing Intercreditor Agreement) the Agent may (and is authorised by the Lenders to) by notice to the Borrower:

 

  

85

  

 

	
  

	
(i)

	
cancel the Total Commitments at which time they shall immediately be cancelled;

 

	
  

	
(ii)

	
declare that all of the Utilisations are immediately due and payable, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents, at which time they shall become immediately due and payable; and

 

	
  

	
(iii)

	
direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Holdco Share Pledges to the extent required (in the opinion of the Security Agent) by the provisions of the Existing Intercreditor Agreement.

 

  

86

  

 

SECTION 9

 

CHANGES TO PARTIES

 

	
24.

	
CHANGES TO THE LENDERS

 

	
24.1

	
Assignments and transfers by the Lenders

 

Subject to this Clause 24 and to Clause 25 (Restriction on Debt Purchase Transactions), a Lender (the “Existing Lender”) may:

 

	
  

	
(a)

	
assign any of its rights; or

 

	
  

	
(b)

	
transfer by novation any of its rights and obligations, under any Finance Document to another bank or 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”).

 

	
24.2

	
Conditions of assignment or transfer

 

	
  

	
(a)

	
The consent of the Borrower is required for an assignment or transfer by an Existing Lender, unless a Default is continuing or the assignment or transfer is to another Lender or an Affiliate of a Lender.

 

	
  

	
(b)

	
The consent of the Borrower to an assignment or transfer must not be unreasonably withheld or delayed. The Borrower will be deemed to have given its consent five Business Days after having received a request from the Existing Lender unless consent is expressly refused by the Borrower within that time.

 

	
  

	
(c)

	
The consent of the Borrower to an assignment or transfer must not be withheld solely because the assignment or transfer may result in an increase to the Mandatory Cost.

 

	
  

	
(d)

	
An assignment or transfer of only part of an Existing Lender's participations or Commitments to a person other than one of its Affiliates, another Existing Lender or a Related Fund of an Existing Lender shall be in a minimum amount of:

 

	
  

	
(i)

	
CZK25,000,000 while an Event of Default is continuing; and

 

	
  

	
(ii)

	
CZK125,000,000 at all other times.

 

	
  

	
(e)

	
An assignment will only be effective on:

 

	
  

	
(i)

	
receipt by the Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender;

 

	
  

	
(ii)

	
the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement (if required); and

 

  

87

  

 

	
  

	
(iii)

	
performance by the 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 Agent shall promptly notify to the Existing Lender and the New Lender.

 

	
  

	
(f)

	
A transfer will only be effective when the New Lender enters into documentation required for it to accede as a party to the Intercreditor Agreement and if the procedure set out in Clause 24.5 (Procedure for transfer) is complied with.

 

	
  

	
(g)

	
If:

 

	
  

	
(i)

	
a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

 

	
  

	
(ii)

	
as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor 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.

 

	
  

	
(h)

	
Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms, for the avoidance of doubt, that the 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.

 

	
24.3

	
Assignment or transfer fee

 

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of EUR2500.

 

If any New Lender fails to pay any transfer fee payable by it under paragraph (a) above on the due date therefore, the Agent may at any time deduct an amount equal to such fee from any moneys from time to time held by the Agent for the account of such New Lender.

 

	
24.4

	
Limitation of responsibility of Existing Lenders

 

	
  

	
(a)

	
Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

 

	
  

	
(i)

	
the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

	
  

	
(ii)

	
the financial condition of any Obligor;

 

  

88

  

 

	
  

	
(iii)

	
the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or

 

	
  

	
(iv)

	
the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, 

 

and any representations or warranties implied by law are excluded.

 

	
  

	
(b)

	
Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

	
  

	
(c)

	
Nothing in any Finance Document obliges an Existing Lender to:

 

	
  

	
(i)

	
accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 24; or

 

	
  

	
(ii)

	
support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

 

	
24.5

	
Procedure for transfer

 

	
  

	
(a)

	
Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate provided that the proposed Transfer Date shall not be less than five Business Days after the date on which such Transfer Certificate is delivered to the Agent for execution .

 

	
  

	
(b)

	
The 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.

 

	
  

	
(c)

	
On the Transfer Date:

 

	
  

	
(i)

	
to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors 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”);

 

  

89

  

 

	
  

	
(ii)

	
each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

 

	
  

	
(iii)

	
the Agent, the Arrangers, the Security Agent, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arrangers, the Security Agent and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

 

	
  

	
(iv)

	
the New Lender shall become a Party as a “Lender”.

 

	
24.6

	
Procedure for assignment

 

	
  

	
(a)

	
Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) 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.

 

	
  

	
(b)

	
The 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 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.

 

	
  

	
(c)

	
On the Transfer Date:

 

	
  

	
(i)

	
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;

 

	
  

	
(ii)

	
the Existing Lender will be released by each Obligor 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

 

	
  

	
(iii)

	
the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations.

 

  

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(d)

	
Lenders may utilise procedures other than those set out in this Clause 24.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with Clause 24.5 (Procedure for transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 24.2 (Conditions of assignment or transfer).

 

	
24.7

	
Copy of Transfer Certificate or Assignment Agreement to Borrower

 

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrower a copy of that Transfer Certificate or Assignment Agreement.

 

	
24.8

	
Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 24, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security 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 to secure obligations to a federal reserve or central bank; and

 

	
  

	
(b)

	
in the case of any Lender which is a fund, any charge, assignment or other Security 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 shall:

 

	
  

	
(i)

	
release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

 

	
  

	
(ii)

	
require any payments to be made by an Obligor 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.

 

	
25.

	
RESTRICTION ON DEBT PURCHASE TRANSACTIONS

 

The Parent or the Borrower shall not, and shall procure that each other member of the CME Group or the 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) or (c) of the definition of Debt Purchase Transactions.

 

	
26.

	
CHANGES TO THE OBLIGORS

 

	
26.1

	
Assignments and transfer by Obligors

 

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

  

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26.2

	
Additional Guarantors

 

	
  

	
(a)

	
Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.11 (“Know your customer” checks), the Borrower may request that any of its Subsidiaries become an Additional Guarantor.  That Subsidiary shall become an Additional Guarantor if:

 

	
  

	
(i)

	
the Borrower delivers to the Agent a duly completed and executed Accession Letter; and

 

	
  

	
(ii)

	
the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.

 

	
  

	
(b)

	
The Agent shall notify the Borrower and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II of Schedule 2 (Conditions precedent).

 

	
  

	
(c)

	
The Borrower shall procure that any other member of the Group which is a Material Company pursuant to paragraph (b) of the definition of Material Company shall, as soon as possible after becoming a Material Company, become an Additional Guarantor.

 

	
26.3

	
Repetition of Representations

 

Delivery of an Accession Letter constitutes confirmation by the relevant Additional Guarantor that the Repeating Representations are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

  

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SECTION 10

 

THE FINANCE PARTIES

 

	
27.

	
ROLE OF THE AGENT AND THE ARRANGERS

 

	
27.1

	
Appointment of the Agent

 

	
  

	
(a)

	
Each other Finance Party appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

	
  

	
(b)

	
Each other Finance Party authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

	
27.2

	
Duties of the Agent

 

	
  

	
(a)

	
Subject to paragraph (b) below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

	
  

	
(b)

	
Without prejudice to Clause 24.7 (Copy of Transfer Certificate or Assignment Agreement to Borrower) paragraph (a) above shall not apply to any Transfer Certificate or to any Assignment Agreement.

 

	
  

	
(c)

	
Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

	
  

	
(d)

	
If the 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 Finance Parties.

 

	
  

	
(e)

	
If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arrangers or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.

 

	
  

	
(f)

	
The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

 

	
27.3

	
Role of the Arrangers

 

Except as specifically provided in the Finance Documents, the Arrangers have no obligations of any kind to any other Party under or in connection with any Finance Document.

 

	
27.4

	
No fiduciary duties

 

	
  

	
(a)

	
Nothing in this Agreement constitutes the Agent, the Security Agent or the Arrangers as a trustee or fiduciary of any other person.

 

  

93

  

 

	
  

	
(b)

	
Neither the Agent nor the Arrangers 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.

 

	
27.5

	
Business with the Group

 

The Agent, the Security Agent and the Arrangers may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the CME Group or the Group.

 

	
27.6

	
Rights and discretions of the Agent

 

	
  

	
(a)

	
The Agent may rely on:

 

	
  

	
(i)

	
any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

 

	
  

	
(ii)

	
any statement made by an Officer, director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

	
  

	
(b)

	
The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

 

	
  

	
(i)

	
no Default has occurred (unless it has actual knowledge of a Default arising under Clause 23.1 (Non-payment));

 

	
  

	
(ii)

	
any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and

 

	
  

	
(iii)

	
any notice or request made by the Borrower (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors.

 

	
  

	
(c)

	
The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

	
  

	
(d)

	
The Agent may act in relation to the Finance Documents through its personnel and agents.

 

	
  

	
(e)

	
The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

	
  

	
(f)

	
Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arrangers are obliged to do or omit to do anything if it would or might in their reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

	
27.7

	
Majority Lenders’ instructions

 

	
  

	
(a)

	
Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.

 

  

94

  

 

	
  

	
(b)

	
Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties other than the Security Agent.

 

	
  

	
(c)

	
The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

 

	
  

	
(d)

	
In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.

 

	
  

	
(e)

	
The 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.

 

	
27.8

	
Responsibility for documentation

 

Neither the Agent nor the Arrangers:

 

	
  

	
(a)

	
are responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arrangers, an Obligor or any other person given in or in connection with any Finance Document; or

 

	
  

	
(b)

	
are responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document; or

 

	
  

	
(c)

	
are responsible for 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.

 

	
27.9

	
Exclusion of liability

 

	
  

	
(a)

	
Without limiting paragraph (b) below (and without prejudice to the provisions of paragraph (e) of Clause 30.10 (Disruption to Payment Systems etc.)), the Agent will not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.

 

	
  

	
(b)

	
No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.7 (Third Party Rights) and the provisions of the Third Parties Act.

 

  

95

  

 

	
  

	
(c)

	
The 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 Agent if the 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 Agent for that purpose.

 

	
  

	
(d)

	
In no event shall the Agent or any Finance Party be liable on any theory of liability for any special, indirect, consequential or punitive damages and the Borrower hereby waives, releases and agrees (for itself and on behalf of the other Obligors and the members of the Group) not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favour.

 

	
  

	
(e)

	
Nothing in this Agreement shall oblige the Agent or the Arrangers to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent and the Arrangers 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 the Agent or the Arrangers.

 

	
27.10

	
Lenders’ indemnity to the 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 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 Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 30.10 (Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

	
27.11

	
Resignation of the Agent

 

	
  

	
(a)

	
The Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Borrower.

 

	
  

	
(b)

	
Alternatively the Agent may resign by giving 30 days’ notice to the other Finance Parties and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor Agent.

 

	
  

	
(c)

	
If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Borrower) may appoint a successor Agent (acting through an office in the United Kingdom).

 

	
  

	
(d)

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

 

  

96

  

 

	
  

	
(e)

	
The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

	
  

	
(f)

	
Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 27.  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.

 

	
  

	
(g)

	
After consultation with the Borrower, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Agent shall resign in accordance with paragraph (b) above.

 

	
27.12

	
Confidentiality

 

	
  

	
(a)

	
In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

	
  

	
(b)

	
If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

	
27.13

	
Relationship with the Lenders

 

	
  

	
(a)

	
The Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

	
  

	
(i)

	
entitled to or liable for any payment due under any Finance Document on that day; and

 

	
  

	
(ii)

	
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.

 

	
  

	
(b)

	
Each Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost Formulae).

 

	
  

	
(c)

	
Each Lender shall supply the Agent with any information that the Security Agent may reasonably specify (through the Agent) as being necessary or desirable to enable the Security Agent to perform its functions as Security Agent.  Each Lender shall deal with the Security Agent exclusively through the Agent and shall not deal directly with the Security Agent.

 

	
  

	
(d)

	
Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or dispatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 32.5 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt 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, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 32.2 (Addresses) and paragraph (a)(iii) of Clause 32.5 (Electronic communication) and the 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.

 

  

97

  

 

	
27.14

	
Credit appraisal by the Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Arrangers that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

	
  

	
(a)

	
the financial condition, status and nature of each member of the Group;

 

	
  

	
(b)

	
the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

	
  

	
(c)

	
whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

	
  

	
(d)

	
the adequacy, accuracy and/or completeness of the Information Memorandum and any other information provided by the Agent, any Party or by any other person 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.

 

	
27.15

	
Reference Banks

 

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 Agent shall (in consultation with the Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

 

	
27.16

	
Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

  

98

  

 

	
27.17

	
Parallel Debt

 

Each Obligor hereby acknowledges and agrees that it is bound by the parallel debt provisions set out in Clause 18.20 (Parallel Debt - Covenant to pay the Security Agent) of the Intercreditor Agreement.

 

	
28.

	
CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

	
  

	
(a)

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

 

	
  

	
(b)

	
oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

 

	
  

	
(c)

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

 

	
29.

	
SHARING AMONG THE FINANCE PARTIES

 

	
29.1

	
Payments to Finance Parties

 

If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 30 (Payment mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:

 

	
  

	
(a)

	
the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

 

	
  

	
(b)

	
the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 30 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

	
  

	
(c)

	
the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 30.5 (Partial payments).

 

	
29.2

	
Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 30.5 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

 

  

99

  

 

	
29.3

	
Recovering Finance Party’s rights

 

On a distribution by the Agent under Clause 29.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

 

	
29.4

	
Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

	
  

	
(a)

	
each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

	
  

	
(b)

	
as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

 

	
29.5

	
Exceptions

 

	
  

	
(a)

	
This Clause 29 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

 

	
  

	
(b)

	
A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

	
  

	
(i)

	
it notified that other Finance Party of the legal or arbitration proceedings; and

 

	
  

	
(ii)

	
that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

  

100

  

SECTION 11

 

ADMINISTRATION

 

	
30.

	
PAYMENT MECHANICS

 

	
30.1

	
Payments to the Agent

 

	
  

	
(a)

	
On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the 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 Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

	
  

	
(b)

	
Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies.

 

	
30.2

	
Distributions by the Agent

 

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 30.3 (Distributions to an Obligor) and Clause 30.4 (Clawback) be made available by the 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 Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency.

 

	
30.3

	
Distributions to an Obligor

 

The Agent may (with the consent of the Obligor or in accordance with Clause 31 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

	
30.4

	
Clawback

 

	
  

	
(a)

	
Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

	
  

	
(b)

	
If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

	
30.5

	
Partial payments

 

	
  

	
(a)

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

 

  

101

  

 

	
  

	
(i)

	
first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent and the Security Agent under the Finance Documents;

 

	
  

	
(ii)

	
secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement;

 

	
  

	
(iii)

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

 

	
  

	
(iv)

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

 

	
  

	
(b)

	
The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

 

	
  

	
(c)

	
Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

 

	
30.6

	
No set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

	
30.7

	
Business Days

 

	
  

	
(a)

	
Any payment 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).

 

	
  

	
(b)

	
During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

	
30.8

	
Currency of account

 

	
  

	
(a)

	
Subject to paragraphs (b) and (c) below, CZK is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

	
  

	
(b)

	
Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

	
  

	
(c)

	
Any amount expressed to be payable in a currency other than CZK shall be paid in that other currency.

 

	
30.9

	
Change of currency

 

	
  

	
(a)

	
Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

  

102

  

 

	
  

	
(i)

	
any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrower); and

 

	
  

	
(ii)

	
any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

 

	
  

	
(b)

	
If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

	
30.10

	
Disruption to Payment Systems etc.

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Borrower that a Disruption Event has occurred:

 

	
  

	
(a)

	
the Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

	
  

	
(b)

	
the Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) 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 Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) 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 Agent and the Borrower 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 36 (Amendments and Waivers);

 

	
  

	
(e)

	
the Agent shall not be liable for any damages, costs or losses 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 Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 30.10; and

 

	
  

	
(f)

	
the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

 

	
31.

	
SET-OFF

 

A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, 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.

 

  

103

  

 

	
32.

	
NOTICES

 

	
32.1

	
Communications in writing

 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.

 

	
32.2

	
Addresses

 

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

 

	
  

	
(a)

	
in the case of the Parent and the Borrower, that identified with their names below;

 

	
  

	
(b)

	
in the case of each Lender or any other Original Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

	
  

	
(c)

	
in the case of the Agent or the Security Agent, that identified with its name below, 

 

or any substitute address or fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days’ notice.

 

	
32.3

	
Delivery

 

	
  

	
(a)

	
Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

 

	
  

	
(i)

	
if by way of fax, when received in legible form; or

 

	
  

	
(ii)

	
if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to that address; 

 

and, if a particular department or officer is specified as part of its address details provided under Clause 32.2 (Addresses), if addressed to that department or officer.

 

	
  

	
(b)

	
Any communication or document to be made or delivered to the Agent or the Security Agent will be effective only when actually received by the Agent or the Security Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s or Security Agent’s signature below (or any substitute department or officer as the Agent or Security Agent shall specify for this purpose).

 

	
  

	
(c)

	
All notices from or to an Obligor shall be sent through the Agent.

 

  

104

  

 

	
  

	
(d)

	
Any communication or document made or delivered to the Borrower in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

 

	
32.4

	
Notification of address and fax number

 

Promptly upon receipt of notification of an address or fax number or change of address or fax number pursuant to Clause 32.2 (Addresses) or changing its own address or fax number, the Agent shall notify the other Parties.

 

	
32.5

	
Electronic communication

 

	
  

	
(a)

	
Any communication to be made between the Agent or the Security Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent, the Security Agent and the relevant Lender:

 

	
  

	
(i)

	
agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

	
  

	
(ii)

	
notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

 

	
  

	
(iii)

	
notify each other of any change to their address or any other such information supplied by them.

 

	
  

	
(b)

	
Any electronic communication made between the Agent and a Lender or the Security Agent will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or the Security Agent shall specify for this purpose.

 

	
32.6

	
English language

 

	
  

	
(a)

	
Any notice given under or in connection with any Finance Document must be in English.

 

	
  

	
(b)

	
All other documents provided under or in connection with any Finance Document must be:

 

	
  

	
(i)

	
in English; or

 

	
  

	
(ii)

	
if not in English, and if so required by the 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.

 

  

105

  

 

	
33.

	
CALCULATIONS AND CERTIFICATES

 

	
33.1

	
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.

 

	
33.2

	
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.

 

	
33.3

	
Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

	
34.

	
PARTIAL INVALIDITY

 

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

	
35.

	
REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

	
36.

	
AMENDMENTS AND WAIVERS

 

	
36.1

	
Required consents

 

	
  

	
(a)

	
Subject to Clause 36.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such amendment or waiver will be binding on all Parties.

 

	
  

	
(b)

	
The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause.

 

	
36.2

	
Exceptions

 

	
  

	
(a)

	
An amendment or waiver that has the effect of changing or which relates to:

 

	
  

	
(i)

	
the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

  

106

  

 

	
  

	
(ii)

	
an extension to the date of payment of any amount under the Finance Documents;

 

	
  

	
(iii)

	
a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

 

	
  

	
(iv)

	
an increase in or an extension of any Commitment or the Total Commitments;

 

	
  

	
(v)

	
a change to the Borrower or Guarantors other than in accordance with Clause 26 (Changes to the Obligors);

 

	
  

	
(vi)

	
any provision which expressly requires the consent of all the Lenders;

 

	
  

	
(vii)

	
Clause 2.2 (Finance Parties’ rights and obligations), Clause 24 (Changes to the Lenders) or this Clause 36;

 

	
  

	
(viii)

	
the nature or scope of the guarantee and indemnity granted under Clause 18 (Guarantee and Indemnity); or

 

	
  

	
(ix)

	
the release of any guarantee and indemnity granted under Clause 18 (Guarantee and Indemnity) or of any Transaction Security unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of the Transaction Security unless such sale or disposal is expressly permitted under this Agreement or any other Finance Document; 

 

shall not be made without the prior consent of all the Lenders.

 

	
  

	
(b)

	
An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent or the Arrangers (each in their capacity as such) may not be effected without the consent of the Agent, the Security Agent or, as the case may be, the Arrangers.

 

	
37.

	
CONFIDENTIALITY

 

	
37.1

	
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 37.2 (Disclosure of Confidential Information) and Clause 37.3 (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.

 

	
37.2

	
Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

	
  

	
(a)

	
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 paragraph (a) 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;

 

  

107

  

 

	
  

	
(b)

	
to any person:

 

	
  

	
(i)

	
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 and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

	
  

	
(ii)

	
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 one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

	
  

	
(iii)

	
appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (c) of Clause 27.13 (Relationship with the Lenders));

 

	
  

	
(iv)

	
who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

 

	
  

	
(v)

	
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;

 

	
  

	
(vi)

	
to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 24.8 (Security over Lenders’ rights);

 

	
  

	
(vii)

	
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;

 

	
  

	
(viii)

	
who is a Party; or

 

	
  

	
(ix)

	
with the consent of the Borrower;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

	
  

	
(A)

	
in relation to paragraphs (b)(i), (b)(ii) and b(iii) 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;

 

  

108

  

 

	
  

	
(B)

	
in relation to paragraph (b)(iv) 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;

 

	
  

	
(C)

	
in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) 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;

 

	
  

	
(c)

	
to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii) 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 paragraph (c) 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 Borrower and the relevant Finance Party;

 

	
  

	
(d)

	
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 Obligors 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.

 

	
37.3

	
Disclosure to numbering service providers

 

	
  

	
(a)

	
Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

 

	
  

	
(i)

	
names of Obligors;

 

	
  

	
(ii)

	
country of domicile of Obligors;

 

	
  

	
(iii)

	
place of incorporation of Obligors;

 

	
  

	
(iv)

	
date of this Agreement;

 

  

109

  

 

	
  

	
(v)

	
the names of the Agent and the Arrangers;

 

	
  

	
(vi)

	
date of each amendment and restatement of this Agreement;

 

	
  

	
(vii)

	
amount of Total Commitments;

 

	
  

	
(viii)

	
currency of the Facility;

 

	
  

	
(ix)

	
type of Facility;

 

	
  

	
(x)

	
ranking of Facility;

 

	
  

	
(xi)

	
Termination Date for Facility;

 

	
  

	
(xii)

	
changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and

 

	
  

	
(xiii)

	
such other information agreed between such Finance Party and the Borrower, 

 

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

 

	
  

	
(b)

	
The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors 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.

 

	
  

	
(c)

	
Each Obligor represents that none of the information set out in paragraphs (i) to (xiii) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

 

	
37.4

	
Entire agreement

 

This Clause 37 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

	
37.5

	
Inside information

 

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

	
37.6

	
Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

  

110

  

 

	
  

	
(a)

	
of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 37.2 (Disclosure of Confidential Information) 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 Confidential Information has been disclosed in breach of this Clause 37 (Confidentiality).

 

	
37.7

	
Continuing obligations

 

The obligations in this Clause 37 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of six months from the earlier of:

 

	
  

	
(a)

	
the date on which all amounts payable by the Obligors 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

 

	
  

	
(b)

	
the date on which such Finance Party otherwise ceases to be a Finance Party.

 

	
38.

	
COUNTERPARTS

 

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

 

  

111

  

SECTION 12

 

GOVERNING LAW AND ENFORCEMENT

 

	
39.

	
GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

	
40.

	
ENFORCEMENT

 

	
40.1

	
Jurisdiction

 

	
  

	
(a)

	
The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a “Dispute”).

 

	
  

	
(b)

	
The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

	
  

	
(c)

	
This Clause 40.1 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

	
40.2

	
Service of process

 

Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

 

	
  

	
(a)

	
irrevocably appoints CME Development Corporation with its registered branch at 52 Charles Street, London, W1J 5EU as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

 

	
  

	
(b)

	
agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

 

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

 

  

112

  

 

SCHEDULE 1

THE ORIGINAL PARTIES

Part I

 

The Original Obligors

 

	
Name of Original Borrower

	
Registration number (or equivalent, if any)

Jurisdiction of Incorporation

	 	 
	
CET 21 spol. s r.o.

	
45800456

Czech Republic

	 	 
	
Name of Original Guarantor

	
Registration number (or equivalent, if any)

Jurisdiction of Incorporation

	 	 
	
Central European Media Enterprises Ltd.

	
19574

Bermuda

	 	 
	
Central European Media Enterprises N.V.

	
67248

Curacao

	 	 
	
CME Media Enterprises B.V.

	
33246826

The Netherlands

	 	 
	
CME Investments B.V. (formerly known as CME Romania B.V.)

	
33289326

The Netherlands

	 	 
	
CME Slovak Holdings B.V.

	
34274606

The Netherlands

	 	 
	
MARKÍZA – SLOVAKIA, spol. s r.o.

	
31444873

Slovak Republic

  

113

  

 

Part II

The Original Lenders

 

	
Name of Original Lender

	
Commitment

	  	  
	
BNP Paribas S.A.

	
CZK 250,000,000

	  	  
	
JPMorgan Chase Bank N.A.

	
CZK 250,000,000

	  	  
	
Citibank Europe plc

(acting through its Prague branch Citibank Europe plc, organizační složka)

	
CZK 375,000,000

	  	  
	
ING Bank N.V.

	
CZK 375,000,000

	  	  
	
Česká spořitelna, a.s.

	
CZK 250,000,000

 

  

114

  

 

SCHEDULE 2

CONDITIONS PRECEDENT

Part I

 

Conditions Precedent to Initial Utilisation

 

	
1.

	
Original Obligors

 

	
  

	
(a)

	
A copy of the constitutional documents of each Original Obligor.

 

	
  

	
(b)

	
A copy of a resolution of the executives of the Borrower and a resolution of the board of directors of each Original Obligor (other than the Borrower and Markiza):

 

	
  

	
(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)

	
authorizing 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 Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party.

 

	
  

	
(c)

	
A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

 

	
  

	
(d)

	
A copy of a resolution signed by all the holders of the issued shares in each Original Obligor (other than the Parent and Markiza), approving the terms of, and the transactions contemplated by, the Finance Documents to which that Original Obligor is a party.

 

	
  

	
(e)

	
A certificate from each of the Original Obligors (signed by an Officer) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on such Original Obligor to be exceeded (including, without limitation, any limit, restriction or covenant set out in the Parent Note Documents).

 

	
  

	
(f)

	
A certificate of an Officer of the relevant Original Obligor certifying that each copy document relating to it specified in paragraphs 1(a), 1(b), 1(d), 1(g), 1(h), 2(f), 5(c) to (e), 5(g), 5(h), 5(j), 5(k), 5 (l) and 5(n), as applicable, of Part I of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the original date of this Agreement.

 

	
  

	
(g)

	
If required by Slovak law or the constitutional documents of Markiza, a copy of a resolution of the general meeting of Markiza approving the terms of, and transactions contemplated by, the Finance Documents to which Markiza is a party.

 

	
  

	
(h)

	
A copy of a resolution of the general meeting of the Borrower approving the terms of, and transactions contemplated by, the enterprise pledge agreement referred to in Clause 2(g)(q) below.

 

  

115

  

 

	
2.

	
Finance Documents

 

	
  

	
(a)

	
The Intercreditor Agreement executed by the Obligors.

 

	
  

	
(b)

	
This Agreement executed by the Obligors.

 

	
  

	
(c)

	
The Fee Letters executed by the Borrower (being the arrangement, participation, agency and security agency fee letters).

 

	
  

	
(d)

	
The Hedging Letter executed by the Borrower.

 

	
  

	
(e)

	
The Existing Intercreditor Agreement.

 

	
  

	
(f)

	
A copy, certified by an Officer of the Borrower, to be a true copy of the Notes Documents.

 

	
  

	
(g)

	
At least one original of each of the following Transaction Security Documents executed by the companies named below opposite the relevant Transaction Security Document:

 

	
The Parent

	
(a)

	
Curacao law share pledge over all existing and future shares issued by Central European Media Enterprises N.V.

 

	
Central European Media Enterprises N.V.

	
(b)

	
Dutch law share pledge over all existing and future shares owned by it in CME Media Enterprises B.V.

 

	
CME Media Enterprises B.V. and CME Investments B.V.

	
(c)

	
First ranking share pledge over the ownership interests representing together 100 per cent. of the registered capital of the Borrower

 

	  	
(d)

	
Copies of applications to the Czech Commercial Register confirmed by the Czech Commercial register for the registration of the pledge over the ownership interests representing together 100 per cent. of the registered capital of the Borrower in favour of the Security Agent

 

	
The Borrower

	
(e)

	
First ranking share pledge over all existing and further issued shares of Slovak Holdings

 

	  	
(f)

	
First ranking pledge over the ownership interest representing 100 per cent. of the registered capital of Media Pro Pictures, s.r.o.

 

 

  

116

  

 

	  	
(g)

	
Copy of the application to the Czech Commercial Register confirmed by the Czech Commercial Register for the registration of the pledge over the ownership interest representing 100 per cent. of the registered capital of Media Pro Pictures, s.r.o. in favour of the Security Agent

 

	  	
(h)

	
First ranking mortgage over the immovable assets of the Borrower

 

	  	
(i)

	
Copies of the applications for registration of each Transaction Security Document purporting to create Security over the immovable assets of the Borrower to the respective cadastral registers together with evidence that the applications have been duly submitted to such offices

 

	  	
(j)

	
First ranking pledge over movable assets of the Borrower

 

	  	
(k)

	
Copy of the extract from the Czech Notarial Register with respect to the above movable assets confirming that the pledge over those assets has been duly created

 

	  	
(l)

	
Pledge of receivables of the Borrower under the contracts for the sale of the advertising time and under the Factoring Facility Agreement

 

	  	
(m)

	
Pledge of Required Insurance Policies

 

	  	
(n)

	
Copy of notices of pledge sent by the Borrower to the relevant insurance counterparties

 

	  	
(o)

	
First ranking pledge over bank accounts of the Borrower

 

	  	
(p)

	
Copy of notices of pledge sent by the Borrower to the account banks

 

	  	
(q)

	
First ranking pledge over the enterprise of the Borrower

 

	  	
(r)

	
Copy of the extract from the Czech Notarial Register confirming that the pledge over the enterprise of the Borrower has been duly created

 

	
CME Investments B.V.

	
(s)

	
English law assignment of the loan provided under the CET Loan Agreement

 

	  	
(t)

	
Dutch law pledge over the loan provided under the Markiza Loan Agreement

 

	  	
(u)

	
Notice of assignment of the loan provided under the Markiza Loan Agreement, acknowledged by Markiza

 

 

  

117

  

 

	
3.

	
Legal opinions

 

	
  

	
(a)

	
A legal opinion of the following legal advisers to the Agent and Arrangers, each addressed to the Agent, Security Agent and the Original Lenders:

 

	
  

	
(i)

	
Simpson Thacher & Bartlett LLP, as to English law;

 

	
  

	
(ii)

	
White & Case, advokátni kancelář, as to Czech law;

 

	
  

	
(iii)

	
White & Case s.r.o., as to Slovak law;

 

	
  

	
(iv)

	
Houthoff Buruma, as to Dutch law;

 

	
  

	
(v)

	
Van Eps Kunneman, as to Curacao law; and

 

	
  

	
(b)

	
A capacity legal opinion of the following legal advisers to the Obligors:

 

	
  

	
(i)

	
Kotrlík Bourgeault Andruško, advokátní kancelář, as to Czech law;

 

	
  

	
(ii)

	
Allen & Overy Bratislava, s r.o., as to Slovak law;

 

	
  

	
(iii)

	
Loyens & Loeff, as to Dutch law; and

 

	
  

	
(iv)

	
Loyens & Loeff, as to Curacao law.

 

	
  

	
(c)

	
A capacity, validity and enforceability legal opinion of Conyers Dill & Pearman, legal advisers to the Parent as to Bermuda law.

 

	
4.

	
Insurance

 

Copies of all insurance policies subject to or expressed to be subject to the Transaction Security relating to the Charged Property, including, without limitation the Required Insurance Policies.

 

	
5.

	
Other documents and evidence

 

	
  

	
(a)

	
Evidence that any process agent referred to in Clause 40.2 (Service of process) has accepted its appointment.

 

	
  

	
(b)

	
A legal opinion from Katten Muchin Rosenman Cornish LLP, in a form acceptable to the Arrangers (acting reasonably) that the Obligors are permitted under the terms of any agreements binding upon them to enter into this Agreement and the Transaction Security Documents and undertake the obligations set out therein.

 

  

118

  

 

	
  

	
(c)

	
A copy, certified by an Officer of the Borrower to be a true copy, of the CET Loan Agreement.

 

	
  

	
(d)

	
A copy, certified by an Officer or authorised signatory of CME Investments B.V. to be a true copy, of the Markiza Loan Agreement.

 

	
  

	
(e)

	
A copy, certified by an Officer or authorised signatory of the Parent to be a true copy, of each Parent Note Instrument.

 

	
  

	
(f)

	
A certificate signed by an Officer or authorised signatory of the Parent certifying that the Parent Note Instruments are in full force and effect.

 

	
  

	
(g)

	
A copy, certified by an Officer or authorised signatory of the Parent or relevant Obligor, as applicable, to be a true copy, of the Original Financial Statements of the Parent and each Obligor.

 

	
  

	
(h)

	
A certified copy of the Group Structure Chart.

 

	
  

	
(i)

	
Confirmation from the Lenders that all “know your customer” requirements have been satisfied.

 

	
  

	
(j)

	
A copy of the Broadcasting Licences.

 

	
  

	
(k)

	
The Borrower’s Business Plan.

 

	
  

	
(l)

	
The CME Group Business Plan.

 

	
  

	
(m)

	
A certificate from each Obligor certifying that, to the extent required, any approaches to works councils (or other similar bodies) in respect of that Obligor have been made and approval of the Refinancing Transactions obtained.

 

	
  

	
(n)

	
Executed copies, certified by an Officer of the Borrower as a true copy, of irrevocable prepayment and cancellation notices in respect of the Erste Facility Agreement.

 

	
  

	
(o)

	
Evidence that the Security granted by the Obligors in support of the Erste Facility Agreement has been released.

 

	
  

	
(p)

	
Evidence that the Notes have been issued.

 

	
  

	
(q)

	
Evidence satisfactory to the Agent (acting reasonably) that the CME Group has, subsequent to 30 September 2010, applied not less than USD100,000,000 of its Cash to purchase Parent Notes.

 

	
  

	
(r)

	
Amendment to the Existing Intercreditor Agreement to include the Security Agent as a Secured Party (as defined therein) and allowing it to share in the distribution of the Distribution Moneys (as defined therein) .

 

	
  

	
(s)

	
Evidence that all fees, costs and expenses due from the Obligors or any member of the Group in relation to the Refinancing Transactions have been paid or will be paid by the first Utilisation Date.

 

	
  

	
(t)

	
Sources and uses statement.

 

  

119

  

 

	
  

	
(u)

	
A copy of any other Authorisation or other document, opinion or assurance which the Agent or the Arrangers (acting reasonably) consider to be necessary or desirable (if the Agent has notified the 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.

 

  

120

  

 

Part II

Conditions precedent required to be

delivered by an Additional Guarantor

 

	
  

	
(a)

	
An Accession Letter, duly executed by the Additional Guarantor and the Borrower.

 

	
  

	
(b)

	
A copy of the constitutional documents of the Additional Guarantor.

 

	
  

	
(c)

	
A copy of a resolution of the board of directors (or, in the case of a Slovak Additional Guarantor, or a Czech Additional Guarantor. where there is no board of directors, of a majority of its statutory executives) of the Additional Guarantor:

 

	
  

	
(i)

	
approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter;

 

	
  

	
(ii)

	
authorising a specified person or persons to execute the Accession Letter on its behalf; and

 

	
  

	
(iii)

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

 

	
  

	
(d)

	
If required by Slovak law or the constitutional documents of a Slovak Additional Guarantor, a copy of a resolution of the general meeting and the supervisory board (if any) of such Slovak Additional Guarantor approving the terms of, and transactions contemplated by, the Finance Documents to which such Slovak Additional Guarantor is a party.

 

	
  

	
(e)

	
If required by Czech law or the constitutional documents of a Czech Additional Guarantor, a copy of a resolution of the general meeting and the supervisory board (if any) of such Czech Additional Guarantor approving the terms of, and transactions contemplated by, the Finance Documents to which such Czech Additional Guarantor is a party.

 

	
  

	
(f)

	
A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

 

	
  

	
(g)

	
A copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor (other than a Slovak Additional Guarantor), approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party.

 

	
  

	
(h)

	
A certificate of the Additional Guarantor (signed by an Officer) confirming that guaranteeing the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded.

 

	
  

	
(i)

	
A certificate of an Officer certifying that each copy document listed in this Part II of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.

 

  

121

  

 

	
  

	
(j)

	
An accession deed to the Intercreditor Agreement substantially in the form set out in Schedule 2 to the Intercreditor Agreement.

 

	
  

	
(k)

	
Any Security documents which the Agent requires the Additional Guarantor or its immediate Holding Company to execute.

 

	
  

	
(l)

	
If available, the latest audited financial statements of the Additional Guarantor.

 

	
  

	
(m)

	
A legal opinion of Simpson, Thacher & Bartlett LLP, legal advisers to the Arrangers and the Agent in England.

 

	
  

	
(n)

	
If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Arrangers and the Agent in the jurisdiction in which the Additional Guarantor is incorporated.

 

	
  

	
(o)

	
If the Additional Guarantor is incorporated in a jurisdiction other than England and Wales, a capacity legal opinion of the legal advisers to the Group in the jurisdiction in which the Additional Guarantor is incorporated.

 

	
  

	
(p)

	
If the proposed Additional Guarantor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 40.2 (Service of process), if not  an Obligor, has accepted its appointment in relation to the proposed Additional Guarantor.

 

	
  

	
(q)

	
A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document.

 

  

122

  

SCHEDULE 3

UTILISATION REQUEST

	
From: 

	
CET 21 spol. s r.o.

 

	
To: 

	
[Agent]

 

Dated:

 

Dear Sirs

 

CET 21 spol. s r.o. – Revolving Facility Agreement

dated [•] 2010 (the “Agreement”)

 

	
  

	
(a)

	
We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

	
  

	
(b)

	
We wish to borrow a Loan on the following terms:

 

	
Proposed Utilisation Date:

	
[•] (or, if that is not a Business Day, the next Business Day)

	 	 
	
Currency of Loan:

	
CZK

	 	 
	
Amount:

	
[•] or, if less, the Available Facility

	 	 
	
Interest Period:

	
[•]

	 	 

	
  

	
(c)

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

 

	
  

	
(d)

	
The proceeds of this Loan should be credited to [account].

 

	
  

	
(e)

	
This Utilisation Request is irrevocable.

 

	 	Yours faithfully
	 	 	 
	 	 	 
	 	authorised signatory for
	 	CET 21 spol. s r.o.

 

  

123

  

SCHEDULE 4

MANDATORY COST FORMULAE

	
  

	
(a)

	
The mandatory cost is an addition to the interest rate to compensate lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank.

 

	
  

	
(b)

	
On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

 

	
  

	
(c)

	
The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent.  This percentage will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office.

 

	
  

	
(d)

	
The Additional Cost Rate for any Lender lending from a Facility Office in the Czech Republic will be the percentage notified by that Lender to the Agent.  This percentage will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the Czech National Bank in respect of loans made from that Facility Office.

 

	
  

	
(e)

	
The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Agent as follows:

 

	
  

	
(i)

	
in relation to a sterling Loan:

 

(AB+C(B-D)+ E×0.01)/(100-(A+C))  per cent. per annum

	
  

	
(ii)

	
in relation to a Loan in any currency other than sterling:

 

(E ×0.01)/300 per cent. per annum

Where:

 

	
  

	
A

	
is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.

 

  

124

  

 

	
  

	
B

	
is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in paragraph (a) of Clause 9.3 (Default interest)) payable for the relevant Interest Period on the Loan.

 

	
  

	
C

	
is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

 

	
  

	
D

	
is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits.

 

	
  

	
E

	
is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Agent as being the average of the most recent rates of charge supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

For the purposes of this Schedule:

 

“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England;

 

“Fees Rules” means the rules on periodic fees contained in the Financial Services Authority Fees Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;

 

“Fee Tariffs” means the fee tariffs specified in the Fees Rules under Column 1 of the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and

 

“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules.

 

	
  

	
(f)

	
In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05).  A negative result obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to four decimal places.

 

	
  

	
(g)

	
If requested by the Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 

	
  

	
(h)

	
Each Lender shall supply any information required by the Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Lender shall supply the following information on or prior to the date on which it becomes a Lender:

 

  

125

  

 

	
  

	
(i)

	
the jurisdiction of its Facility Office; and

 

	
  

	
(ii)

	
any other information that the Agent may reasonably require for such purpose.

 

	
  

	
(i)

	
Each Lender shall promptly notify the Agent of any change to the information provided by it pursuant to this paragraph.

 

	
  

	
(j)

	
The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Agent based upon the information supplied to it pursuant to paragraphs 8 and 9 above and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

 

	
  

	
(k)

	
The Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 4, 8 and 9 above is true and correct in all respects.

 

	
  

	
(l)

	
The Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 4, 8 and 9 above.

 

	
  

	
(m)

	
Any determination by the Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

	
  

	
(n)

	
The Agent may from time to time, after consultation with the Borrower  and the Lenders, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority, the European Central Bank or the Czech National Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

  

126

  

SCHEDULE 5

FORM OF TRANSFER CERTIFICATE

	
To: 

	
[•] as Agent and [•] as Security Agent

 

	
From: 

	
[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

 

Dated:

 

CET 21 spol. s r.o. – Revolving Facility Agreement

dated [•] 2010 (the “Agreement”)

 

	
  

	
(a)

	
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.

 

	
  

	
(b)

	
We refer to Clause 24.5 (Procedure for transfer):

 

	
  

	
(i)

	
The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 24.5 (Procedure for transfer).

 

	
  

	
(ii)

	
The proposed Transfer Date is [•].

 

	
  

	
(iii)

	
The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 32.2 (Addresses) are set out in the Schedule.

 

	
  

	
(iv)

	
the New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility of Existing Lenders).

 

	
  

	
(c)

	
The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

	
  

	
(i)

	
[a Qualifying Lender falling within paragraph (a) of the definition of Qualifying Lender;]

 

	
  

	
(ii)

	
[a Qualifying Lender falling within paragraph (b) of the definition of Qualifying Lender;]

 

	
  

	
(iii)

	
[a Treaty Lender;]

 

	
  

	
(iv)

	
[5/6.] 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.

 

	
  

	
(v)

	
[6/7] This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

  

127

  

 

	
  

	
(vi)

	
[7/8]. This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate.

 

  

128

  

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments,]

	
[Existing Lender]

	
[New Lender]

	  	  
	
By:

	
By:

	  	  

This agreement is accepted as a Transfer Certificate for the purposes of the Agreement by the Agent, and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Agreement by the Security Agent, and the Transfer Date is confirmed as [•].

 

[Agent]

 

By:

 

 

[Security Agent]

 

By:

 

  

129

  

SCHEDULE 6

FORM OF ASSIGNMENT AGREEMENT

	
To: 

	
[•] as Agent, [•] as Security Agent and CET 21 spol. s r.o. as Borrower, for and on behalf of each Obligor

 

	
From: 

	
the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”)

 

Dated:

 

CET 21 spol. s r.o. - Revolving Facility Agreement

dated [•] 2010 (the “Agreement”)

 

	
  

	
(a)

	
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.

 

	
  

	
(b)

	
We refer to Clause 24.6 (Procedure for assignment):

 

	
  

	
(i)

	
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 Commitments and participations in Loans under the Agreement as specified in the Schedule.

 

	
  

	
(ii)

	
The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and participations in Loans under the Agreement specified in the Schedule.

 

	
  

	
(iii)

	
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.

 

	
  

	
(iv)

	
The proposed Transfer Date is [•].

 

	
  

	
(v)

	
On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

 

	
  

	
(vi)

	
The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 32.2 (Addresses) are set out in the Schedule.

 

	
  

	
(vii)

	
The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility of Existing Lenders).

 

	
  

	
(c)

	
The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

	
  

	
(i)

	
[a Qualifying Lender falling within paragraph (a) of the definition of Qualifying Lender;]

 

  

130

  

 

	
  

	
(ii)

	
[a Qualifying Lender falling within paragraph (b) of the definition of Qualifying Lender;]

 

	
  

	
(iii)

	
[a Treaty Lender;]

 

	
  

	
(iv)

	
[8/9].

	
This Assignment Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 24.6 (Procedure for assignment), to the Borrower (on behalf of each Obligor) of the assignment referred to in this Assignment Agreement.

 

	
  

	
(v)

	
[9/10]. 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.

 

	
  

	
(vi)

	
[10/11]. This Assignment Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

	
  

	
(vii)

	
[11/12]. This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

 

  

131

  

 

THE SCHEDULE

 

Rights to be assigned and obligations to be released and undertaken

 

[insert relevant details]

[Facility office address, fax number and attention details for notices and account details for payments]

	
[Existing Lender]

	
[New Lender]

	  	  
	
By:

	
By:

 

This agreement is accepted as an Assignment Agreement for the purposes of the Agreement by the Agent, and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Agreement by the Security Agent, and the Transfer Date is confirmed as [•].

 

Signature of this agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this agreement, which notice the Agent receives on behalf of each Finance Party.

 

[Agent]

 

By:

 

 

[Security Agent]

 

By:

 

  

132

  

 

SCHEDULE 7

FORM OF ACCESSION LETTER

	
To: 

	
[•] as Agent

 

	
From: 

	
[Subsidiary] and CET 21 spol. s r.o.

 

Dated:

 

 

Dear Sirs

 

CET 21 spol. s r.o. – Revolving Facility Agreement

dated [•] 2010 (the “Agreement”)

 

	
  

	
(a)

	
We refer to the Agreement.  This is an Accession Letter.  Terms defined in the Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter.

 

	
  

	
(b)

	
[Subsidiary] agrees to become an Additional Guarantor and to be bound by the terms of the Agreement as an Additional Guarantor pursuant to Clause 26.2 (Additional Guarantors) of the Agreement.  [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction].

 

	
  

	
(c)

	
[Subsidiary’s] administrative details are as follows:

 

Address:

Fax No:

Attention

 

	
  

	
(d)

	
This Accession Letter and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

	
  

	
(e)

	
This Guarantor Accession Letter is entered into by deed.

 

	
[Borrower]

	
[Subsidiary]

  

133

  

SCHEDULE 8

FORM OF COMPLIANCE CERTIFICATE

	
To: 

	
[•] as Agent

 

	
From: 

	
CET 21 spol. s r.o.

 

Dated:

 

 

Dear Sirs

 

CET 21 spol. s r.o. – Revolving Facility Agreement

dated [•] 2010 (the “Agreement”)

 

	
  

	
(a)

	
We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

	
  

	
(b)

	
We confirm that:  [Insert details of covenants to be certified]

 

	
  

	
(c)

	
[We confirm that no Default is continuing.]*

 

	
Signed:

	
 

	  	 	 
	  	
Statutory executive of [Borrower]

	
Statutory executive of [Borrower]

	  	  	  	  	 
	  	  	  	  	 

[insert applicable certification language]

 

 

	 	 
	for and on behalf of
	[name of auditors of the Borrower]

 

 

 

	
*

	
If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

 

  

134

  

SCHEDULE 9

EXISTING SECURITY

Erste Transaction Security

	
Name of Obligor

	
Security document

	 	 
	
The Borrower

	
First ranking share pledge over all existing and further issued shares of Slovak Holdings

	 	 
	  	
First ranking pledge over the ownership interest representing 100% of the registered capital of Jyxo, s.r.o.

	 	 
	  	
First ranking pledge over the ownership interest representing 100% of the registered capital of BLOG Internet,  s.r.o.

	 	 
	  	
First ranking pledge over the ownership interest representing 100% of the registered capital of Media Pro Pictures, s.r.o.

	 	 
	  	
First ranking mortgage over the immovable assets of the Borrower

	 	 
	  	
First ranking pledge over movable assets of the Borrower

	 	 
	  	
Pledge of receivables of the Borrower under the contracts for the sale of the advertising time and under the Factoring Facility Agreement

	 	 
	  	
Pledge of certain insurance policies

	 	 
	  	
First ranking pledge over certain bank accounts of the Borrower

	 	 
	  	
First ranking pledge over the enterprise of the Borrower

	 	 
	
CME Investments B.V.

	
English law assignment of the loan provided under the CET Loan Agreement

	 	 
	  	
Dutch law pledge over the loan provided under the Markiza Loan Agreement

  

135

  

 

SCHEDULE 10

LMA FORM OF CONFIDENTIALITY UNDERTAKING

[Letterhead of Seller]

 

To:

 

	  	
[insert name of Potential Purchaser]

	 	 
	 	 
	 	 

 

 

Re:           The Agreement

 

	
Company:

	
(the “Borrower”)

	
Date:

	  
	
Amount:

	  
	
Agent

	  

 

Dear Sirs

 

We understand that you are considering acquiring an interest in the Agreement which, subject to the Agreement, may be by way of novation, assignment, the entering into, whether directly or indirectly, of a sub-participation 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 one or more Obligors or by way of investing in or otherwise financing, directly or indirectly, any such novation, assignment, sub-participation or other transaction (the “Acquisition”).  In consideration of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows:

 

	
1.

	
CONFIDENTIALITY UNDERTAKING

 

You undertake (a) to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by paragraph 2 below and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to your own confidential information, and (b) to use the Confidential Information only for the Permitted Purpose.

 

	
2.

	
PERMITTED DISCLOSURE

 

We agree that you may disclose:

 

  

136

  

 

	
2.1.

	
to any of your Affiliates and any of your or their officers, directors, employees, professional advisers and auditors such Confidential Information as you shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph 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;

 

	
2.2.

	
subject to the requirements of the Agreement, to any person:

 

	
  

	
(a)

	
to (or through) whom you assign or transfer (or may potentially assign or transfer) all or any of your rights and/or obligations which you may acquire under the Agreement such Confidential Information as you shall consider appropriate if the person to whom the Confidential Information is to be given pursuant to this sub-paragraph (a) of paragraph 2.2 has delivered a letter to you in equivalent form to this letter;

 

	
  

	
(b)

	
with (or through) whom you enter into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to the Agreement or any Obligor such Confidential Information as you shall consider appropriate if the person to whom the Confidential Information is to be given pursuant to this sub-paragraph (b) of paragraph 2.2 has delivered a letter to you in equivalent form to this letter;

 

	
  

	
(c)

	
to whom information is required or requested to be disclosed by 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 such Confidential Information as you shall consider appropriate; and

 

	
2.3.

	
notwithstanding paragraphs 2.1 and 2.2. above, Confidential Information to such persons to whom, and on the same terms as, a Finance Party is permitted to disclose Confidential Information under the Agreement, as if such permissions were set out in full in this letter and as if references in those permissions to Finance Party were references to you.

 

	
3.

	
NOTIFICATION OF DISCLOSURE

 

You agree (to the extent permitted by law and regulation) to inform us:

 

	
3.1.

	
of the circumstances of any disclosure of Confidential Information made pursuant to sub-paragraph (c) of paragraph 2.2 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

 

	
3.2.

	
upon becoming aware that Confidential Information has been disclosed in breach of this letter.

 

	
4.

	
RETURN OF COPIES

 

If you do not enter into the Acquisition and we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase (to the extent technically practicable) all copies of Confidential Information made by you and use your reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases (to the extent technically practicable) such Confidential Information and any copies made by them, in each case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential Information has been disclosed under sub-paragraph (c) of paragraph 2.2 above.

 

  

137

  

 

	
5.

	
CONTINUING OBLIGATIONS

 

The obligations in this letter are continuing and, in particular, shall survive and remain binding on you until (a) if you acquire an interest in the Agreement by way of novation, the date on which you acquire such an interest; (b) if you enter into the Acquisition other than by way of novation, the date falling twelve months after termination of that Acquisition; or (c) in any other case twelve months after the date of this letter.

 

	
6.

	
NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC

 

You acknowledge and agree that:

 

	
6.1.

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

 

	
6.2.

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

 

	
7.

	
ENTIRE AGREEMENT: NO WAIVER; AMENDMENTS, ETC

 

	
7.1.

	
This letter constitutes the entire agreement between us in relation to your obligations regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

	
7.2.

	
No failure or delay in exercising any right or remedy under this letter will operate as a waiver thereof nor will any single or partial exercise of any right or remedy preclude any further exercise thereof or the exercise of any other right or remedy under this letter.

 

	
7.3.

	
The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between us.

 

	
8.

	
INSIDE INFORMATION

 

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

 

  

138

  

 

	
9.

	
NATURE OF UNDERTAKINGS

 

The undertakings given by you under this letter are given to us and are also given for the benefit of the Borrower and each other member of the Group and the Parent and each member of the CME Group.

 

	
10.

	
THIRD PARTY RIGHTS

 

	
10.1.

	
Subject to this paragraph 10 and to paragraphs 6 and 9, a person who is not a party to this letter 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 letter.

 

	
10.2.

	
The Relevant Persons may enjoy the benefit of the terms of paragraphs 6 and 9 subject to and in accordance with this paragraph 10 and the provisions of the Third Parties Act.

 

	
10.3.

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

 

	
11.

	
GOVERNING LAW AND JURISDICTION

 

	
11.1.

	
This letter (including the agreement constituted by your acknowledgement of its terms)  (the “Letter”) and any non-contractual obligations arising out of or in connection with it (including any non-contractual obligations arising out of the negotiation of the transaction contemplated by this Letter) are governed by English law.

 

	
11.2.

	
The courts of England have non-exclusive jurisdiction to settle any dispute arising out of or in connection with this Letter (including a dispute relating to any non-contractual obligation arising out of or in connection with either this Letter or the negotiation of the transaction contemplated by this Letter).

 

	
12.

	
DEFINITIONS

 

In this letter (including the acknowledgement set out below) terms defined in the Agreement shall, unless the context otherwise requires, have the same meaning and:

 

“CME Group” means the Parent and its Subsidiaries for the time being.

 

“Confidential Information” means all information relating to the Borrower, any Obligor, the Group and the CME Group, the Finance Documents, the Facility and/or the Acquisition which is provided to you in relation to the Finance Documents or the Facility by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

 

	
  

	
(a)

	
is or becomes public information other than as a direct or indirect result of any breach by you of this letter; or

 

	
  

	
(b)

	
is identified in writing at the time of delivery as non-confidential by us or our advisers; or

 

	
  

	
(c)

	
is known by you before the date the information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, from a source which is, as far as you are aware, unconnected with the Group and which, in either case, as far as you are aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

 

  

139

  

 

“Group” means the Borrower and its subsidiaries for the time being (as such term is defined in the Companies Act 2006).

 

“Permitted Purpose” means considering and evaluating whether to enter into the Acquisition.

 

Please acknowledge your agreement to the above by signing and returning the enclosed copy.

 

Yours faithfully

 

 

	 	 
	For and on behalf of

 

[Seller]

 

To:           [Seller]

 

The Borrower and each other member of the Group

 

We acknowledge and agree to the above:

 

	 	 
	For and on behalf of

 

[Potential Purchaser]

 

  

140

  

SCHEDULE 11

TIMETABLES

	
Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request))

 

	
U-3

 

9.30 AM

	 	 
	
Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Lender’s participation)

	  
	 	 
	
PRIBOR is fixed

	
Quotation Day as of

11:00 a.m. (Prague time)

	 	 
	
“U” = date of utilisation of a Loan

“U-X” = X Business Days prior to date of utilisation of a Loan

 

  

141

  

 

SIGNATURES

 

THE BORROWER

 

CET 21 spol. s r.o.

 

	
By:   /s/ Petr Dvořák

	
By:     /s/ Oliver Meister

	
         Petr Dvořák

	
           Oliver Meister

	
Title: Executive Director

	
Title:  Executive Director

	  	  
	
Address: 5, Kříženeckého nám. 1078/5, Postal code: 152 00, Czech Republic

	
Attention: Vít Vážan, Chief Financial Officer

	
Fax: 420 242 466 035

	  
	  	  
	
With a copy to:

	  
	  	  
	
CME Media Services Limited

5, Kříženeckého nám. 1078/5, 

152 00, Czech Republic

	  
	
Attention: Treasury Department

	  
	
Fax: +420 242 466 010

	  

  

142

  

THE ORIGINAL GUARANTORS

 

Central European Media Enterprises Ltd.

 

By:           /s/ David Sach

 

Title:       CFO

 

Address: Mintflower Place, 4th Floor, 8 Par-La-Ville Road, Hamilton, Bermuda

Attention: Assistant Secretary

Fax: +1 441 295 0992

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

 

Central European Media Enterprises N.V.

 

By:           /s/ Oliver Meister

 

                 Oliver Meister

 

Title:        Managing Director

 

Address: Schottegatweg Oost 44, Willemstad, Curaçao

Attention: Managing Director

Fax: + 599 9 732 2500

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

  

143

  

 

CME Media Enterprises B.V.

 

By:           /s/ David Sturgeon

 

 David Sturgeon

 

Title:        Managing Director

 

Address: Dam 5B, 1012 JS Amsterdam, The Netherlands

Attention: Finance Officer

Fax: +312 042 31404

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

 

CME Investments B.V.

 

By:           /s/ David Sturgeon

 

 David Sturgeon

 

Title:        Managing Director

 

Address: Dam 5B, 1012 JS Amsterdam, The Netherlands

Attention: Finance Officer

Fax: +312 042 31404

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

  

144

  

 

CME Slovak Holdings B.V.

 

By:           /s/ David Sturgeon

 

                 David Sturgeon

 

Title:        Managing Director

 

Address: Dam 5B, 1012 JS Amsterdam, The Netherlands

Attention: Finance Officer

Fax: +312 042 31404

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

 

MARKÍZA – SLOVAKIA, spol. s r.o.

 

	
By:           /s/ Radka Doehring

	
By:          /s/ Petr Dvořák

	 	 
	
                 Radka Doehring

	
                Petr Dvořák

	 	 
	Title:       Attorney	Title:       Attorney

 

Address: Bratislavska 1/a, 843 56 Bratislava - Zahorska Bystrica, Slovak Republic

Attention: Finance Director

Fax: +421 2 6595 6829

 

With a copy to:

 

CME Development Corporation

52 Charles Street

London W1J 5EU

Attention: Legal Department

Fax: +44 207 127 5801

 

  

145

  

THE ARRANGERS

 

BNP Paribas S.A.

 

	 By:          /s/ Sandra Sitbon	 
	 	 
	                 Sandra Sitbon	 
	 	 
	Title:        Director	 

                                             

Address: 37 Place du Marché Saint Honoré, 75 031 Paris Cedex 01, France

Attention: Sandra Sitbon/ Ali El Amari

Fax: +33 1 42 98 09 79

 

 

J.P. Morgan PLC

 

By:           /s/ Frances Smith

 

Title:        Executive Director

 

Address: 10 Aldermanbury, London EC2V 7RF

Attention: Frances Smith

Fax: +44 20 7777 1493

 

 

Citigroup Global Markets Limited

 

By:           /s/ Camilo Mori

 

Title:        Managing Director

 

Address: 33 Canada Square, Canary Wharf, London E14 5LB

Attention: Camilo Mori, Managing Director

Fax: +44 20 7986 8295

 

 

ING Bank N.V.

 

	By:           /s/ David J. Grover	/s/ Stefan Verhoeven
	 	 
	                 David J. Grover 	Stefan Verhoeven
	 	 
	Title:        Director	Director
	 	 
	 	Telecom & Media Finance

 

Address: Bijlmerplein, 888 1102 MG Amsterdam, The Netherlands

Attention: Olivia Salamanca

Fax: + 31-20-565-8203

 

  

146

  

 

Česká spořitelna, a.s.

 

	By:           /s/ František Havrda	By:           /s/ Václav Šnydr
	 	 
	Title:        Povĕřeni/Proxy	Title:        Senior Manager
	 	 
	 	                 Syndications/syndikované úvĕry

 

Address: Olbrachtova 1929/62, 140 00  Praha 4, Czech Republic

Attention: František Havrda/ Václav Šnýdr

Fax: +420 224 641 080

 

  

147

  

 

THE AGENT

 

BNP Paribas S.A.

 

	By:           /s/ Sandra Sitbon	 
	 	 
	                 Sandra Sitbon	 
	 	 
	Title:        Director	 

 

Address: BNP PARIBAS - Agency - European Group, 21, place du Marché Saint-Honoré, 75031 Paris    Cedex 01, France

Attention: Alexandra Arhab/Assad Karkabi

Fax: + 33 1 42 98 43 17

 

  

148

  

 

THE SECURITY AGENT

 

BNP Paribas Trust Corporation UK Limited

 

By:           /s/ Andrew Brown

 

 Andrew Brown

 

Title:       (under Power of Attorney)

 

Address: 55 Moorgate, London, EC2R 6PA

Attention: The Directors

Fax: +44 20 7595 5078

 

  

149

  

 

THE ORIGINAL LENDERS

 

BNP Paribas S.A.

 

	By:           /s/ Sandra Sitbon	 
	 	 
	                 Sandra Sitbon	 
	 	 
	Title:        Director	 

                                  

Address: 37 Place du Marché Saint Honoré, 75 031 Paris Cedex 01, France

Attention: Sandra Sitbon/ Ali El Amari

Fax: +33 1 42 98 09 79

 

 

JPMorgan Chase Bank N.A.

 

By:           /s/ Frances Smith

 

Title:        Executive Director

 

Address: 125 London Wall, London EC2Y 5AJ

Attention: Frances Smith

Fax: +44 20 7777 1493

 

 

Citibank Europe plc

 

(acting through its Prague branch Citibank Europe plc, organizační složka)

 

By:           /s/ Zuzana Trunečková

 

 Zuzana Trunečková

 

Title:        Director

 

Address: Bucharova 2641/14, 158 02, Prague 5, Czech Republic

Attention: Petr Vodenka

Fax: +420 233 061 611

 

 

ING Bank N.V.

 

	By:           /s/ David J. Grover	/s/ Stefan Verhoeven
	 	 
	                 David J. Grover	 
	 	 
	Title:        Director 	
Director 

	 	 
	 	Telecom & Media Finance

          

Address: Bijlmerplein, 888 1102 MG Amsterdam, The Netherlands

Attention: Olivia Salamanca

Fax: +31 20 565 8203

 

  

150

  

 

Česká spořitelna, a.s.

 

	By:           /s/ František Havrda	By:           /s/ Václav Šnydr
	 	 
	Title:        Povĕřeni/Proxy  	Title:        Senior Manager
	 	 
	 	                 Syndications/syndikované úvĕry

 

Address: Evropská 17, 160 00  Praha 6, Czech Republic

Attention: Václav Šnýdr

Fax: +420 224 641 080

 

 

151

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