Document:

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                                                                   Exhibit 10.20

              ASSIGNMENT OF LEASE BY LESSOR WITH CONSENT OF LESSEE

This Assignment made this first day of November 2004, by FLAVIN VENTURES, LLC, a
Delaware Limited Liability Company ("Assignor") to BIOSTART PROPERTY GROUP, LLC,
a Delaware Limited Liability Company ("Assignee").

For value received, Assignor assigns and transfers to Assignee that lease, dated
October 1, 2003, executed by assignor as lessor and by ADVANCED LIFE SCIENCES,
INC., an Illinois Corporation ("Lessee"), of the following described premises:
1440 DAVEY ROAD, WOODRIDGE, ILLINOIS, together with all right, title, and
interest in and to the lease and premises, subject to all the conditions and
terms contained in the lease, to have and to hold throughout the term of that
lease.

A copy of the lease is attached hereto as EXHIBIT A and made a part hereof by
reference.

Assignor covenants that it is the lawful and sole owner of the interest assigned
hereunder; that this interest is free from all encumbrances; and that it has
performed all duties and obligations required under the terms and conditions of
the lease.

Assignee agrees to collect all rent due after the effective date of this
assignment, and to assume and perform all duties and obligations required by the
terms of the lease.

Flavin Ventures, LLC                          BioStart Property Group, LLC
(Assignor)                                    (Assignee)

By:    /s/ Michael T. Flavin                  By:    /s/ John L. Flavin
   ----------------------------                  ----------------------
Name:  Michael T. Flavin, Ph.D.               Name:  John L. Flavin
Title: Member                                 Title: Member
Date:  November 1, 2004                       Date:  November 1, 2004

CONSENT OF LESSEE

Advanced Life Sciences, Inc, an Illinois Corporation ("Lessee") named in the
above assignment of that lease executed on October 1, 2003, consent to that
assignment. Lessee also consents to the agreement by Assignee to assume after
October 31, 2004, the collection of rent and performance of all duties and
obligations as set forth in the lease.

Advanced Life Sciences, Inc
(Lessee)

By:    /s/ R. Richard Wieland, II
   ------------------------------
Name:  R. Richard Wieland II
Title: Chief Financial Officer
Date:  November 1, 2004

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                                                                       EXHIBIT A

                                 LEASE AGREEMENT

                                     BETWEEN

                               FLAVIN VENTURES LLC
                      A DELAWARE LIMITED LIABILITY COMPANY

                                   (LANDLORD)

                                       AND

                          ADVANCED LIFE SCIENCES, INC.

                             AN ILLINOIS CORPORATION

                                    (TENANT)

                                1440 DAVEY ROAD,
                               WOODRIDGE, ILLINOIS

                             DATED: OCTOBER 1, 2003

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                               EXHIBITS AND RIDERS

     The following Exhibits and Riders are attached hereto and by this reference
made a part of this Lease:

EXHIBIT A       -     FLOOR PLAN OF THE PREMISES

EXHIBIT B       -     THE LAND

EXHIBIT C       -     RENT SCHEDULE

RIDER NO. 1     -     RULES AND REGULATIONS

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                                 LEASE AGREEMENT

     THIS LEASE AGREEMENT ("this Lease") is made and entered into by and between
FLAVIN VENTURES, LLC, A DELAWARE LIMITED LIABILITY COMPANY ("Landlord") and
ADVANCED LIFE SCIENCES, INC., AN ILLINOIS CORPORATION ("Tenant"), upon all the
terms set forth in this Lease and in all Exhibits and Riders hereto, to each and
all of which terms Landlord and Tenant hereby mutually agree, and in
consideration of One Dollar ($1.00) and other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and of the rents,
agreements and benefits flowing between the parties hereto, as follows:

           ARTICLE 1- BASIC LEASE INFORMATION AND CERTAIN DEFINITIONS

     Section 1.1 Each reference in this Lease to information and definitions
contained in the Basic Lease Information and Certain Definitions and each use of
the terms capitalized and defined in this Section 1.1 shall be deemed to refer
to, and shall have the respective meaning set forth in, this Section 1.1.

<Table>
<S>                                        <C>
A.    Premises:                            The portion of the Building, presently known as 1440 Davey Road, as said space is
                                           identified by diagonal lines or shaded area on the floor plans attached hereto as Exhibit
                                           A.

B.    Building:                            The building commonly known as 1440 Davey Road, Woodridge, Illinois.

C.    Land:                                That certain parcel of real estate described in Exhibit B attached hereto.

D.    Project:                             The Land and all improvements thereon, including the Building and all Common Areas.

E.    Commencement Date:                   That certain date on which the Term shall commence, as determined pursuant to the
                                           provisions of Article 3 hereof.

F.    Expiration Date:                     The last day of the fifth (5th) Lease Year (defined below).

G.    Term:                                Five (5) Lease Years. The first "Lease Year" shall be the period from the Commencement
                                           Date to the last day of the twelfth (12th) full calendar month following the calendar
                                           month in which the Commencement Date occurs. Thereafter, each consecutive twelve (12)
                                           calendar month period shall constitute one (1) Lease Year. Notwithstanding anything
                                           contained herein to the contrary, if the Commencement Date occurs on the first (1st) day
                                           of a calendar month, the first Lease Year shall be twelve (12) full calendar months.
</Table>

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<Table>
<S>                                        <C>
                                           The term may be renewed by sixty (60) days prior written notice by Tenant.

H.    Rentable Area of the Premises:       Landlord and Tenant agree that for all purposes of this Lease the Rentable Area of the
                                           Premises shall be deemed to be 15,000 square feet.

I.    Rentable Area of the Building:       Landlord and Tenant agree that for all purposes of this Lease the Rentable Area of the
                                           Building shall be deemed to be 15,000 square feet.

J.    Tenant's Share:                      36.6% of the Building

K.    Rent:                                The Base Rent and any Additional Rent.

L.    Base Rent:                           The Base Rent shall be the amounts set forth on the Base Rent Schedule attached hereto as
                                           Exhibit C, subject to such increases as may be provided herein.

M.    Additional Rent:                     The Additional Rent shall be all other sums due and payable by Tenant under the Lease,
                                           including, but not limited to, Tenant's Share of Operating Costs.

N.    Intentionally deleted

0.    Tenant's Permitted Uses:             Tenant may use the Premises for general office and laboratory purposes.

P.    Security Deposit:                    As set forth in Article 21 herein.

Q.    Landlord's Address for Notice:       Flavin Ventures, LLC
                                           1440 Davey Road, Woodridge, Illinois 60517
                                           Attention: Patrick Flavin

R.    Landlord's Address for Payment:      Flavin Ventures, LLC
                                           1440 Davey Road, Woodridge, Illinois 60517
                                           Attention: Patrick Flavin
</Table>

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<Table>
<S>                                        <C>
V.    Tenant's Address for Notice:         Advanced Life Sciences
                                           1440 Davey Road, Woodridge, Illinois 60517
</Table>

                    ARTICLE 2 - PREMISES AND QUIET ENJOYMENT

     Section 2.1    Landlord hereby leases the Premises to Tenant, and Tenant
hereby rents and hires the Premises from Landlord, for the Term. During the
Term, Tenant shall have the right to use, in common with others and in
accordance with the Rules and Regulations (as set forth in Rider No. 1 of the
Lease) the Common Areas. Tenant shall be subject to the terms, conditions and
provisions of any and all ground leases, deeds to secure debt, mortgages,
restrictive covenants, easements and other encumbrances now or hereafter
affecting the Premises or the Project ("Encumbrances").

     Section 2.2    Provided that Tenant fully and timely performs all the terms
of this Lease on Tenant's part to be performed, including payment by Tenant of
all Rent, Tenant shall have, hold and enjoy the Premises during the Term without
hindrance or disturbance from or by Landlord; subject, however, to all of the
terms, conditions and provisions of any and all Encumbrances.

                      ARTICLE 3 - TERM; COMMENCEMENT DATE;
                       DELIVERY AND ACCEPTANCE OF PREMISES

     Section 3.1    The Commencement Date shall be October 1, 2003.

     Section 3.2    Occupancy of the Premises or any portion thereof by Tenant
or anyone claiming through or under Tenant shall be conclusive evidence that
Tenant and all parties claiming through or under Tenant (a) have accepted the
Premises or such portion in its as is condition as suitable for the purposes for
which the Premises are leased hereunder and the needs of Tenant, and (b) have
waived any rights or claims arising from any defects in the Premises and the
Project.

                                ARTICLE 4 - RENT

     Section 4.1    Tenant shall pay to Landlord, without notice, demand, offset
or deduction, in lawful money of the United States of America, at Landlord's
Address for Payment, or at such other place as Landlord shall designate in
writing from time to time: (a) the Base Rent in equal monthly installments, in
advance, on the first day of each calendar month during the Term, and (b) the
Additional Rent, at the respective times required hereunder. The first monthly
installment of Base Rent and the Additional Rent payable under Article 5 hereof
shall be paid in advance on the date of Tenant's execution of this Lease and
applied to the first installments of Base Rent and such Additional Rent coming
due under this Lease. Payment of Rent shall begin on the Commencement Date;
provided, however, that, if either the Commencement Date or the Expiration Date
falls on a date other than the first day of a calendar month, the Rent due for
such fractional month shall be prorated on a per diem basis between Landlord and
Tenant so as to charge Tenant only for the portion of such fractional month
falling within the Term.

     Section 4.2    All installments of Rent which are not paid within five (5)
days after their due date shall be subject to a late charge of five percent (5%)
of the amount of the late payment and shall further bear interest until paid at
a rate per annum (the "Interest Rate") equal to the greater of fifteen percent
(15%) or four percent (4%) above the prime rate of interest from time to time
listed in the Wall Street Journal; provided, however, that, if at the time such
interest is sought to be imposed the rate of interest exceeds the maximum rate
permitted under federal law or under the laws of the State of Illinois, the rate
of interest on such past due installments of Rent shall be the maximum rate of
interest then permitted by applicable law.

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     Section 4.3    Base Rent shall increase by 5% each year on the anniversary
of the Commencement Date.

                           ARTICLE 5 - OPERATING COSTS

     Section 5.1    Concurrently with the first payment of Base Rent hereunder
and on the first day of each calendar month during the Term, Tenant shall pay to
Landlord, as Additional Rent, an amount ("Tenant's Operating Costs Payment") of
money equal to Tenant's Share of Operating Costs, for each year or fractional
year during the Term, such amount to be calculated and paid as follows:

     A.   Within sixty (60) days following the Commencement Date, and on the
first day of January of each year during the Term thereafter, or as soon
thereafter as is practicable, Landlord may furnish Tenant with a statement
("Landlord's Operating Costs Estimate") setting forth Landlord's reasonable
estimate of Operating Costs as adjusted pursuant to Section 5.3 for the
forthcoming year and Tenant's Operating Costs Payment for such year, as adjusted
pursuant to Section 5.3. On the first day of each calendar month during such
year, Tenant shall pay to Landlord one-twelfth (1/12th) of Tenant's Operating
Costs Payment as estimated on Landlord's Operating Costs Estimate. If during any
calendar year actual Operating Costs differ from Landlord's Operating Costs
Estimate for such calendar year, Landlord may send Tenant a revised Landlord's
Operating Costs Estimate, and, upon receipt thereof, Tenant shall thereafter
make monthly payments as set forth in the revised Landlord's Operating Cost
Estimate. If for any reason Landlord has not provided Tenant with Landlord's
Operating Costs Estimate on the first day of January of any year during the
Term, then (a) until the first day of the calendar month following the month in
which Tenant is given Landlord's Operating Costs Estimate, Tenant shall continue
to pay to Landlord on the first day of each calendar month the sum, if any,
payable by Tenant under this Section 5.1 for the month of December of the
preceding year, and (b) promptly after Landlords' Operating Costs Estimate is
furnished to Tenant, Landlord shall give notice to Tenant stating whether the
installments of Tenant's Operating Costs Payments previously made for such year
were greater or less than the installments of Tenant's Operating Costs Payments
to be made for such year, and (i) if there shall be a deficiency, Tenant shall
pay the amount thereof to Landlord within thirty (30) days after the delivery of
Landlord's Operating Costs Estimate, or (ii) if there shall have been an
overpayment, Landlord shall apply such overpayment as a credit against the next
accruing monthly installment(s) of Tenant's Operating Costs Payment due from
Tenant until fully credited to Tenant (or if there is no further installment of
Tenant's Operating Costs Payment due by Tenant, then Landlord shall remit such
overpayment directly to Tenant), and (iii) on the first day of the calendar
month following the month in which Landlord's Operating Costs Estimate is given
to Tenant and on the first day of each calendar month throughout the remainder
of such year, Tenant shall pay to Landlord an amount equal to one-twelfth
(1/12th) of Landlord's Operating Costs Estimate.

     B.   On the last day of March of each year during the Term (beginning on
the last day of March of the first year following the year in which the
Commencement Date occurs), or as soon thereafter as is practicable, Landlord
shall furnish Tenant with a statement of the actual Operating Costs as adjusted
pursuant to Section 5.3, for the preceding year. Within thirty (30) days after
Landlord's giving of such statement, Tenant shall make a lump sum payment to
Landlord in the amount, if any, by which Tenant's Operating Costs Payment for
such preceding year as shown on such Landlord's statement, exceeds the aggregate
of the monthly installments of Tenant's Operating Costs Payments paid during
such preceding year. If Tenant's Operating Costs Payment, as shown on such
Landlord's statement, is less than the aggregate of the monthly installments of
Tenant's Operating Costs Payment actually paid by Tenant during such preceding
year, then Landlord shall apply such amount to the next accruing monthly
installment(s) of Tenant's Operating Costs Payment due from Tenant until fully
credited to Tenant (or if

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there is no further installment of Tenant's Operating Costs Payment due by
Tenant, then Landlord shall remit such overpayment directly to Tenant).

     C.   If the Term ends on a date other than the last day of December, the
actual Operating Costs for the year in which the Expiration Date occurs, shall
be prorated so that Tenant shall pay that portion of Tenant's Operating Costs
Payment for such year represented by a fraction, the numerator of which shall be
the number of days during such fractional year falling within the Term, and the
denominator of which is 365 (or 366, in the case of a leap year). The provisions
of this Section 5.1 shall survive the Expiration Date or any sooner termination
provided for in this Lease.

     Section 5.2    A. For purposes of this Lease, the term "Operating Costs"
shall mean any and all expenses, costs and disbursements of every kind which
Landlord pays, incurs or becomes obligated to pay in connection with the
operation, management, repair and maintenance of all or any portion of the
Project. All Operating Costs shall be determined according to generally accepted
accounting principles which shall be consistently applied. Operating Costs
include, without limitation, the following: (a) Wages, salaries, benefits and
fees (including all reasonable education, travel and professional fees) of all
personnel or entities engaged in the operation, repair, maintenance, management,
or safekeeping of the Project, including taxes, insurance, and benefits relating
thereto and the costs of all supplies and materials (including work clothes and
uniforms) used in the operation, repair, maintenance and security of the
Project; (b) Cost of performance by Landlord's personnel of, or of all service
agreements for, maintenance, janitorial services, access control, alarm service,
window cleaning, elevator maintenance and landscaping for the Project. Such cost
shall include the rental of personal property and equipment used by Landlord's
personnel and others in the maintenance and repair of the Project; (c) Cost of
utilities for the Project, including water, sewer, gas, fuel and Common Area
power, electricity, lighting and air-conditioning, heating and ventilating;
with Tenant to separately pay the utility service costs for the Premises as
provided in Section 6.2 herein, (d) Cost of all insurance, including casualty
and liability insurance applicable to the Project and to Landlord's equipment,
fixtures and personal property used in connection therewith, business
interruption or rent insurance against such perils as are commonly insured
against by prudent landlords, such other insurance as may be required by any
lessor or mortgagee of Landlord, and such other insurance which Landlord
considers reasonably necessary in the operation of the Project, together with
all appraisal and consultants' fees in connection with such insurance and, with
respect to any claim under such insurance, the amount of any deductible; (e) All
Taxes; and (f) all community maintenance fees. For purposes hereof, the term
"Taxes" shall mean, all taxes, assessments, and other governmental charges,
applicable to or assessed against the Project or any portion thereof, or
applicable to or assessed against Landlord's personal property used in
connection therewith, whether federal, state, county, or municipal and whether
assessed by taxing districts or authorities presently taxing the Project or the
operation thereof or by other taxing authorities subsequently created, or
otherwise, and any other taxes and assessments attributable to or assessed
against all or any part of the Project or its operation; including any
reasonable expenses, including fees and disbursements of attorneys, tax
consultants, arbitrators, appraisers, experts and other witnesses, incurred by
Landlord in contesting any taxes or the assessed valuation of all or any part of
the Project. Tenant acknowledges that Taxes "for" a given calendar year are
those Taxes which accrue and are assessed for the Project in such calendar year
even if paid in a later year. If at any time during the Term there shall be
levied, assessed, or imposed on Landlord or all or any part of the Project by
any governmental entity any general or special ad valorem or other charge or tax
directly upon rents received under leases, or if any fee, tax, assessment, or
other charge is imposed which is measured by or based, in whole or in part, upon
such rents, or if any charge or tax is made based directly or indirectly upon
the transactions represented by leases or the occupancy or use of the Project or
any portion thereof, such taxes, fees, assessments or other charges shall be
deemed to be Taxes. Notwithstanding the foregoing, any (A) franchise,
corporation, income or net profits tax, unless substituted for real estate taxes
or imposed as additional charges in connection with the ownership of the
Project, which may be assessed against Landlord or the Project or both, (B)
transfer taxes assessed

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against Landlord or the Project or both, (C) penalties or interest on any late
payments of Landlord and, (D) personal property taxes of Tenant or other tenants
in the Project shall be excluded from Taxes. If any or all of the Taxes paid
hereunder are by law permitted to be paid in installments, notwithstanding how
Landlord pays the same, then, for purposes of calculating Operating Costs, such
Taxes shall be deemed to have been divided and paid in the maximum number of
installments permitted by law, and there shall be included in Operating Costs
for each year only such installments as are required by law to be paid within
such year, together with interest thereon and on future such installments as
provided by law; (f) Legal and accounting costs incurred by Landlord or paid by
Landlord to third parties (exclusive of legal fees with respect to disputes with
individual tenants, negotiations of tenant leases, or with respect to the
ownership rather than the operation of the Project), appraisal fees, consulting
fees, all other professional fees and disbursements and all association dues;
(g) Cost of non-capitalized repairs and general maintenance for the Project
(excluding repairs and general maintenance paid by proceeds of insurance or by
Tenant, other tenants of the Project or other third parties); (h) Amortization
of the cost of improvements or equipment which are capital in nature and which
(i) are for the purpose of reducing Operating Costs for the Project, up to the
amount saved as a result of the installation thereof, as reasonably estimated by
Landlord, or (ii) enhance the Project for the general benefit of tenants or
occupants thereof, or (iii) are required by any governmental authority, or (iv)
replace any Building equipment needed to operate the Project at the same quality
levels as prior to the replacement. All such costs, including interest thereon,
shall be amortized on a straight-line basis over the useful life of the capital
investment items, as reasonably determined by Landlord, but in no event beyond
the reasonable useful life of the Project; (i) the Project management office
rent or rental value of the Project management office and any conference rooms
of the Building made available by Landlord for common use by tenants of the
Building; and (j) a management fee (whether or not Landlord engages a manager
for the Project or manages the Project with Landlord's personnel) and all items
reimbursable to the Project manager, if any, pursuant to any management contract
for the Project.

     B.   "Operating Costs" shall not include (a) specific costs for any capital
repairs, replacements or improvements, except as provided above; (b) expenses
for which Landlord is reimbursed or indemnified (either by an insurer,
condemner, tenant, warrantor or otherwise) to the extent of funds received by
Landlord; (c) expenses incurred in leasing or procuring tenants (including lease
commissions, advertising expenses and expenses of renovating space for tenants);
(d) payments for rented equipment, the cost of which would constitute a capital
expenditure not permitted pursuant to the foregoing if the equipment were
purchased; (e) interest or amortization payments on any mortgages; (f) net basic
rents under ground leases; (g) costs representing an amount paid to an affiliate
of Landlord which is in excess of the amount which would have been paid in the
absence of such relationship; or (h) costs specially billed to and paid by
specific tenants. There shall be no duplication of costs or reimbursements.

     Section 5.3 If the Building is not fully occupied (meaning one-hundred
percent (100%) of the Rentable Area of the Building) during any full or
fractional year of the Term, components of the actual Operating Costs which vary
with the level of occupancy shall be adjusted for such year to an amount which
Landlord estimates would have been incurred in Landlord's reasonable judgment
had the Building been fully occupied.

                        ARTICLE 6 - INTENTIONALLY DELETED

                        ARTICLE 7 - SERVICES OF LANDLORD

     Section 7.1 A. During the Term, on each Business Day (as defined in
Article 27), Landlord shall furnish Tenant with the following services: (a) hot
and cold water in Building Standard bathrooms and drinking water; (b) permit
Tenant to use Central systems, such as then existing feeders and risers, to
obtain electrical power from the utility supplier sufficient for lighting the
Premises and for the operation

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therein of equipment which consume a reasonable amount of watts per square foot
of Rentable Area of the Premises; (c) heating, ventilating or air-conditioning,
as appropriate, to the Premises and the Common Areas of the Project, during
Business Hours; (d) electric lighting for the Common Areas; (e) facilities for
Tenant's loading, unloading, delivery and pick-up activities, including access
thereto during Business Hours, subject to the Rules and Regulations, the type of
facilities, and other limitations of such loading facilities; and (f) All
services referred to in this Section 7. 1A shall be provided by Landlord and
paid for by Tenant as part of Tenant's Operating Costs Payment. At no time shall
use of electricity in the Premises exceed the capacity of existing feeders and
risers to or wiring in the Premises. Any risers or wiring to meet Tenant's
reasonable excess electrical requirements shall, upon Tenant's written request,
be installed by Landlord, at Tenant's sole cost, if, in Landlord's reasonable
judgment, the same are necessary and shall not (i) cause permanent damage or
injury to the Project, the Building or the Premises, (ii) cause or create a
dangerous or hazardous condition, (iii) entail excessive or unreasonable
alterations, repairs or expenses or (iv) interfere with or disturb other tenants
or occupants of the Building.

     B.   If Tenant requires services, routinely supplied by Landlord for hours
or days in addition to the hours and days specified in Section 7.1A, Landlord
shall make reasonable efforts to provide such additional service after
reasonable prior written request therefor from Tenant, and Tenant shall
reimburse Landlord for the cost of such additional service; provided however,
that, if any other tenants in the Building served by the equipment providing
such additional service to the Premises request that Landlord concurrently
provide such service to such other tenants, the cost of Landlord's providing
such additional and concurrent service shall be prorated among all of the
tenants requesting such service. Landlord shall have no obligation to provide
any additional service to Tenant at any time Tenant is in default under this
Lease unless Tenant pays to Landlord, in advance, the cost of such additional
service. If any machinery or equipment which generates abnormal heat or
otherwise creates unusual demands on the air-conditioning or heating system
serving the Premises is used in the Premises and if Tenant has not, within five
(5) days after demand from Landlord, taken such steps, at Tenant's expense, as
shall be necessary to cease such adverse affect on the air-conditioning or
heating system, Landlord shall have the right to install supplemental
air-conditioning or heating units in the Premises, and the full cost of such
supplemental units (including the cost of acquisition, installation, operation,
use and maintenance thereof) shall be paid by Tenant to Landlord in advance or
on demand as Additional Rent.

     Section 7.2    Although Landlord permits Tenant to use the Central systems
as more fully provided in Section 7.lA above, except as set forth in Section
7.1A, Landlord shall not be obligated to furnish utility services to the
Premises. Tenant shall make all necessary arrangements with the public utility
or alternative utility service suppliers ("Suppliers") supplying electric, gas,
telephone, cable or other utility services to the Premises, and shall be subject
to the rules and regulations of the Suppliers of such services and the rules and
regulations of any municipal or other governmental authority regulating the
business of providing such services. Tenant shall be responsible for contracting
promptly and directly with such Suppliers and for paying all deposits for, and
all costs relating to, such services, so that services are available to the
Premises for Tenant's use on the Commencement Date. Tenant shall cooperate with
Landlord and Suppliers at all times and, as reasonably necessary, shall allow
Landlord and the Suppliers reasonable access to the lines, feeders, risers,
wiring, pipes, meters and any other machinery within the Premises.

     Section 7.3    Landlord shall in no way be liable or responsible for any
loss, damage, or expense that Tenant may sustain or incur by reason of any
change, failure, interference, disruption, or defect in the supply or character
of the utility services furnished to the Premises, or if the quantity or
character of the utility services supplied by the Suppliers is no longer
available or suitable for Tenant's requirements, and no such change, failure,
defect, unavailability, or unsuitability shall constitute an actual or
constructive eviction, in whole or in part, will entitle Tenant to any abatement
or diminution of Rent or relieve Tenant from any of its obligations under this
Lease. Should any malfunction of any systems or facilities occur

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within the Project or should maintenance or alterations of such systems or
facilities become necessary, Landlord shall repair the same promptly and with
reasonable diligence, and Tenant shall have no claim for rebate, abatement of
Rent, or damages because of malfunctions or any such interruptions in service.
Notwithstanding the foregoing, in the event there is failure, delay or
interruption of utility services due to any event covered by rent loss insurance
which is not caused by Tenant or its agents, employees, representative,
contractors, sublessees, licensors or invitees and which causes the Premises (or
any portion thereof) to be untenantable or prohibits access to the Premises, and
as a result of either occurrence, Tenant in fact ceases to use the Premises (or
any portion thereof) for a period in excess of five (5) consecutive Business
Days, then commencing on the sixth (6th) consecutive Business Day of such
untenantability and non-use, Rent payable by Tenant for the untenantable portion
of the Premises shall be abated until the earliest to occur of (a) the date such
failure, delay or interruption is remedied, (b) the date the Premises are again
tenantable or (c) the date Tenant resumes use of the Premises.

                      ARTICLE 8 - ASSIGNMENT AND SUBLETTING

     Section 8.1    Neither Tenant nor its legal representatives or successors
in interest shall, by operation of law or otherwise, assign, mortgage, pledge,
encumber or otherwise transfer this Lease or any part hereof, or the interest of
Tenant under this Lease, or in any sublease or the rent thereunder. The Premises
or any part thereof shall not be sublet, occupied or used for any purpose by
anyone other than Tenant, without Tenant's obtaining in each instance the prior
written consent of Landlord, which consent, subject to the provisions of Section
8.4 below, shall not be unreasonably withheld or delayed. Tenant shall not
modify, extend, or amend a sublease previously consented to by Landlord without
obtaining Landlord's prior written consent thereto, which consent, subject to
the provisions of Section 8.4 below, shall not be unreasonably withheld or
delayed.

     Section 8.2    An assignment of this Lease shall be deemed to have occurred
(a) if in a single transaction or in a series of transactions more than 50% in
interest in Tenant, any guarantor of this Lease, or any subtenant (whether
stock, partnership, interest or otherwise) is transferred, diluted, reduced, or
otherwise affected with the result that the present holder or owners of Tenant,
such guarantor, or such subtenant have less than a 50% interest in Tenant, such
guarantor or such subtenant, or (b) if Tenant's obligations under this Lease are
taken over or assumed in consideration of Tenant leasing space in another office
building. The transfer of the outstanding capital stock of any corporate Tenant,
guarantor or subtenant through the "over-the-counter" market or any recognized
national securities exchange (other than by persons owning 5% or more of the
voting calculation of such 50% interest of clause 8.2(a) above) shall not be
included in the calculation of such 50% interest in clause (a) above.

     Section 8.3    Notwithstanding anything to the contrary in Section 8.1,
upon ten (10) days' prior written notice to Landlord and approval by Landlord,
which approval shall not be unreasonably withheld, Tenant may (a) sublet all or
part of the Premises to any related corporation or other entity which controls
Tenant, is controlled by Tenant or is under common control with Tenant; or (b)
assign this Lease to a successor corporation or other entity into which or with
which Tenant is merged or consolidated or which acquired substantially all of
Tenant's assets and property; provided that (i) such successor corporation
assumes substantially all of the obligations and liabilities of Tenant and shall
have a net worth at least equal to the net worth of Tenant as of the date of
this Lease as determined by generally accepted accounting principles, and (ii)
Tenant shall provide in its notice to Landlord the information required in
Section 8.4. For the purpose hereof "control" shall mean ownership of not less
than 50% of all the voting stock or legal and equitable interest in such
corporation or entity.

     Section 8.4    If Tenant should desire to assign this Lease or sublet the
Premises (or any part thereof), Tenant shall give Landlord written notice no
later than the time required for notice under Section 8.3 in the case of an
assignment or subletting to a related or successor entity as more fully

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<Page>

provided under Section 8.3, or thirty (30) days in advance of the proposed
effective date of any other proposed assignment or sublease, specifying (a) the
name, current address, and business of the proposed assignee or sublessee, (b)
the amount and location of the space within the Premises proposed to be so
subleased, (c) the proposed effective date and duration of the assignment or
subletting, and (d) the proposed rent or consideration to be paid to Tenant by
such assignee or sublessee. Tenant shall promptly supply Landlord with financial
statements and other information as Landlord may request to evaluate the
proposed assignment or sublease. For assignments and sublettings other than
those permitted by Section 8.3, Landlord shall have a reasonable amount of time
following receipt of such notice and other information requested by Landlord
within which to notify Tenant in writing that Landlord elects: (i) to terminate
this Lease as to the space so affected as of the proposed effective date set
forth in Tenant's notice, in which event Tenant shall be relieved of all further
obligations hereunder as to such space, except for provisions of this Lease
which expressly survive the termination hereof; or (ii) to permit Tenant to
assign or sublet such space; provided, however, that, if the rent rate agreed
upon between Tenant and its proposed subtenant is greater than the rent rate
that Tenant must pay Landlord hereunder for that portion of the Premises, or if
any consideration shall be promised to or received by Tenant in connection with
such proposed assignment or sublease (in addition to rent), then fifty percent
(50%) of such excess rent and other consideration shall be considered Additional
Rent owed by Tenant to Landlord (less brokerage commissions, attorneys' fees and
other disbursements reasonably incurred by Tenant for such assignment and
subletting if acceptable evidence of such disbursements is delivered to
Landlord), and shall be paid by Tenant to Landlord, in the case of excess rent,
in the same manner that Tenant pays Base Rent and, in the case of any other
consideration, within ten (10) Business Days after receipt thereof by Tenant; or
(iii) to refuse, in Landlord's reasonable discretion, to consent to Tenant's
assignment or subleasing of such space and to continue this Lease in full force
and effect as to the entire Premises. The parties agree that Landlord may
reasonably refuse to consent to an assignment or subletting if the proposed
assignee or subtenant is not consistent with the standards of a high quality
office and laboratory building or that will impose an excessive demand on or use
of the facilities or services of the Building, is a current tenant or subtenant
of the Project or is a prospective tenant to whom Landlord has offered to lease
space in the Project; provided, however, that the foregoing are merely examples
of reasons for which Landlord may withhold its approval and shall not be deemed
exclusive of any permitted reasons for reasonably withholding approval, whether
similar or dissimilar to the foregoing examples. It shall also be reasonable for
Landlord to refuse to consent to any assignment or subletting if (i) an Event of
Default by Tenant then exists under this Lease, or (ii) such assignment or
subletting would cause a default under another lease in the Building or under
any Encumbrance, or (iii) any portion of the Building or Premises would likely
become subject to additional or different laws as a consequence of the proposed
assignment or subletting. Whether or not Landlord approves of a proposed
assignment or sublet, Tenant agrees to reimburse Landlord as Additional Rent for
reasonable and customary legal fees, a reasonable administrative fee and any
other reasonable costs incurred by Landlord in connection with any proposed
assignment or subletting. Tenant shall deliver to Landlord copies of all
documents executed in connection with any permitted assignment or subletting,
which documents shall be in form and substance reasonably satisfactory to
Landlord and which shall require any assignee to assume performance of all terms
of this Lease to be performed by Tenant or any subtenant to comply with all the
terms of this Lease to be performed by Tenant. No acceptance by Landlord of any
Rent or any other sum of money from any assignee, sublessee or other category of
transferee shall be deemed to constitute Landlord's consent to any assignment,
sublease, or transfer.

     Unless otherwise agreed to in writing by Landlord, no such assignment or
sublease shall release Tenant from any of its obligations under this Lease.

     Section 8.5    A. Tenant acknowledges that this Lease is a lease of
nonresidential real property and therefore agrees that Tenant, as the debtor in
possession, or the trustee for Tenant (collectively the "Trustee") in any
proceeding under Title 11 of the United State Bankruptcy Code relating to
Bankruptcy,

                                        9
<Page>

as amended (the "Bankruptcy Code"), shall not seek or request any extension of
time to assume or reject this Lease or to perform any obligations of this Lease
which arise from or after the order of relief.

     B.   The Trustee shall have the right to assume or assign Tenant's rights
and obligations under this Lease only if the Trustee: (a) promptly cures or
provides adequate assurance that the Trustee will promptly cure any default
under the Lease; (b) compensates or provides adequate assurance that the Trustee
will promptly compensate Landlord for any actual pecuniary loss incurred by
Landlord as a result of Tenant's default under this Lease; and (c) provides
adequate assurance of future performance under the Lease. All payments of Rent
required of Tenant under this Lease, whether or not expressly denominated as
such in this Lease, shall constitute rent for the purposes of Title 11 of the
Bankruptcy Code.

     Section 8.6    The term "Landlord," as used in this Lease, so far as
covenants or obligations on the part of Landlord are concerned, shall be limited
to mean and include only the owner or owners, at the time in question, of the
fee title to, or a lessee's interest in a ground lease of, the Land or the
Building. In the event of any transfer, assignment or other conveyance or
transfers of any such title or interest, Landlord herein named (and in case of
any subsequent transfers or conveyances of any such title or interest, the then
grantor) shall be automatically freed and relieved from and after the date of
such transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord contained in
this Lease thereafter to be performed and, without further agreement, the
transferee of such title or interest shall be deemed to have assumed and agreed
to observe and perform any and all obligations of Landlord hereunder, during its
ownership of the Project. Landlord may transfer its interest in the Project, or
portions thereof on interest therein, without the consent of Tenant and such
transfer or subsequent transfer shall not be deemed a violation on Landlord's
part of any of the terms of this Lease

                               ARTICLE 9 - REPAIRS

     Section 9.1    Except for ordinary wear and tear, Landlord shall perform
all maintenance and make all repairs and replacements to the Premises (including
the Leasehold Improvements). Tenant shall pay to Landlord as Additional Rent the
cost for (a) all maintenance, repairs and replacements within the Premises
(including the Leasehold Improvements), other than (i) repairs and replacements
necessitated by the willful misconduct or negligence of Landlord or its agents,
employees, contractors, invitees or licensees to the extent the cost thereof is
not collectible under Tenant's insurance, or, if Tenant is not carrying all of
the insurance described in Section 14.1A, to the extent such cost would not be
covered by the insurance described in Section l4.1A, if the same were in effect,
(ii) maintenance, repairs and replacements to the Central systems of the
Building located within the Premises; and (iii) services of Landlord described
under Article 6 above to the extent the costs of such services are included
within Operating Costs; and (b) all repairs and replacements necessitated by
damage to the Project (including the Building structure and the Central systems
of the Building within the Premises) caused by Tenant or its agents,
contractors, invitees and licensees but only to the extent the cost thereof is
not collectible under Landlord's insurance, or, if Landlord is not carrying all
of the insurance described in Section 14.2, to the extent that such cost would
not be covered by the insurance described in Section 14.2 if the same were in
effect. Amounts payable by Tenant pursuant to this Section 9.1 shall be payable
within thirty (30) days after receipt of an invoice therefor from Landlord.
Landlord has no obligation and has made no promise to maintain, alter, remodel,
improve, repair, decorate, or paint the Premises or any part thereof, except as
specifically set forth in this Lease. In no event shall Landlord have any
obligation to maintain, repair or replace any furniture, furnishings, fixtures
or personal property of Tenant.

     Section 9.2    Subject to the provisions of Section 15 hereinbelow,
Landlord shall maintain and make all necessary repairs to the foundations, roof,
exterior walls, and structural elements of the Building, the electrical,
plumbing, heating, ventilation and air-conditioning systems comprising the
Central systems

                                       10
<Page>

of the Building and the Common Areas of the Building, except that the cost of
performing any of said maintenance or repairs, whether to the Premises or to the
Building, caused by the negligence of Tenant, its employees, agents, servants,
licensees, subtenants, contractors or invitees, shall be paid by Tenant.

                            ARTICLE 10 - ALTERATIONS

     Section 10.1   Tenant shall not at any time during the Term make any
alterations (including "Specialty Alterations" defined below) to the Premises
without first obtaining Landlord's written consent thereto, which consent
Landlord shall not unreasonably withhold or delay; provided, however, that
Landlord shall not be deemed unreasonable by refusing to consent to any
alterations which are visible from the exterior of the Building or the Project
including but not limited to signage, which will or are likely to cause any
weakening of any part of the structure of the Premises, the Building or the
Project or which will or are likely to cause damage or disruption to the Central
Building systems or which are prohibited by any underlying ground lease or
mortgage. "Specialty Alterations" are defined as alterations consisting of
kitchens, executive bathrooms, raised computer floors, computer, telephone and
telecommunications wiring and cabling in the Premises and Building, computer
installations, supplemental air conditioning systems, safe deposit boxes,
vaults, libraries or file rooms requiring reinforcement of floors, internal
staircases, conveyors, dumbwaiters, and other alterations of a similar character
which Landlord designates as Specialty Alterations by written notice delivered
to Tenant when Landlord approves Tenant's plans containing such alterations.
Should Tenant desire to make any alterations to the Premises, Tenant shall
submit all plans and specifications for such proposed alterations to Landlord
for Landlord's review before Tenant allows any such work to commence, and
Landlord shall promptly approve or disapprove such plans and specifications for
any of the reasons set forth in this Section 10.1 or for any other reason
reasonably deemed sufficient by Landlord. Tenant shall select and use only
contractors, subcontractors or other repair personnel from those listed on
Landlord's approved list maintained by Landlord in the Project management
office. Upon Tenant's receipt of written approval from Landlord and any required
approval of any mortgagee or lessor of Landlord, and upon Tenant's payment to
Landlord of the reasonable costs incurred by Landlord for such review and
approval (including a reasonable fee for the actual time spent by employees of
Landlord), Tenant shall have the right to proceed with the construction of all
approved alterations, but only so long as such alterations are in strict
compliance with the plans and specifications so approved by Landlord and with
the provisions of this Article 10. All alterations shall be made at Tenant's
sole cost and expense.

     Section 10.2   All construction, alterations, including Specialty
Alterations, and repair work done by or for Tenant pursuant to any provision of
this Lease shall (a) be performed in such a manner as to maintain harmonious
labor relations; (b) not adversely affect the safety of the Project, the
Building or the Premises or the systems thereof and not affect the Central
systems of the Building; (c) comply with all building, safety, fire, plumbing,
electrical, and other codes and governmental and insurance requirements; (d) not
result in any usage in excess of building standard water, electricity, gas, or
other utilities or of heating, ventilating or air-conditioning (either during or
after such work) unless prior written arrangements satisfactory to Landlord are
made with respect thereto; (e) be completed promptly and in a good and
workmanlike manner; and (f) not disturb Landlord or other tenants in the
Building. After completion of any alterations to the Premises, Tenant will
deliver to Landlord a copy of "as built" plans and specifications depicting and
describing such alterations.

     Section 10.3   All leasehold improvements, alterations, including Specialty
Alterations, and other physical additions made to or installed by or for Tenant
in the Premises shall be and remain Landlord's property (except for Tenant's
movable fixtures and movable partitions, telephone and other equipment, computer
systems, trade fixtures, furniture, furnishings, and other items of personal
property which are removable without damage to the Premises or the Building
("Tenant's Property")) and shall not be removed without Landlord's written
consent. Tenant agrees to remove, at its sole cost and expense, all of

                                       11
<Page>

Tenant's Property, and, if directed to or permitted to do so by Landlord in
writing, all, or any part of, the leasehold improvements, alterations, including
Specialty Alterations, and other physical additions made by Tenant to the
Premises, on or before the Expiration Date or any earlier date of termination of
this Lease. Tenant shall repair (which shall include closing up any slab
penetrations in the Premises in a good and workmanlike manner), or promptly
reimburse Landlord for the cost of repairing, closing any such slab penetrations
and all damage done to the Premises or the Building by such removal. Tenant
shall notify Landlord of its intention to effect the closing of any such slab
penetrations at least 30 days prior to commencing such closings. Any leasehold
improvements, alterations, including Specialty Alterations, or physical
additions made by Tenant which Landlord does not direct or permit Tenant to
remove at any time during or at the end of the Term shall become the property of
Landlord at the end of the Term without any payment to Tenant. If Tenant fails
to remove any of Tenant's Property by the Expiration Date or any sooner date of
termination of the Lease or, if Tenant fails to remove any leasehold
improvements, alterations, including Specialty Alterations, and other physical
additions made by Tenant to the Premises which Landlord has in writing directed
Tenant to remove, Landlord shall have the right, on the fifth (5th) day after
Landlord's delivery of written notice to Tenant to deem such property abandoned
by Tenant and to remove, store, sell, discard or otherwise deal with or dispose
of such abandoned property in a commercially reasonable manner. Tenant shall be
liable for all costs of such disposition of Tenant's abandoned property, and
Landlord shall have no liability to Tenant in any respect regarding such
property of Tenant. The provisions of this Section 10.3 shall survive the
expiration or any earlier termination of this Lease.

                               ARTICLE 11 - LIENS

     Section 11.1   Tenant shall keep the Project, the Building and the Premises
and Landlord's interest therein free from any liens arising from any work
performed, materials furnished, or obligations incurred by, or on behalf of
Tenant. Notice is hereby given that neither Landlord nor any mortgagee or lessor
of Landlord shall be liable for any labor or materials furnished to Tenant. If
any lien is filed for such work or materials, such lien shall encumber only
Tenant's interest in leasehold improvements on the Premises. Within ten (10)
days after Tenant learns of the filing of any such lien, Tenant shall notify
Landlord of such lien and shall either discharge and cancel such lien of record
or post a bond sufficient under the laws of the State of Illinois to cover the
amount of the lien claim plus any penalties, interest, attorneys' fees, court
costs, and other legal expenses in connection with such lien. If Tenant fails to
so discharge or bond such lien within ten (10) calendar days after written
demand from Landlord, Landlord shall have the right, at Landlord's option, to
pay the full amount of such lien without inquiry into the validity thereof, and
Landlord shall be promptly reimbursed by Tenant, as Additional Rent, for all
amounts so paid by Landlord, including expenses, interest, and attorneys' fees.

                    ARTICLE 12 - USE AND COMPLIANCE WITH LAWS

     Section 12.1   The Premises shall be used only for the uses specifically
set forth in Section 1.10 and for no other purposes whatsoever. Tenant shall use
and maintain the Premises in a clean, careful, safe, lawful and proper manner
and shall not allow within the Premises, any offensive noise, odor, conduct or
private or public nuisance or permit Tenant's employees, agents, licensees or
invitees to create a public or private nuisance or act in a disorderly manner
within the Building or in the Project. Any statement as to the particular nature
of the business to be conducted by Tenant in the Premises and uses to be made
thereof by Tenant as set forth in Section 1.10 hereof shall not constitute a
representation or warranty by Landlord that such business or uses are lawful or
permissible under any certificate of occupancy for the Premises or the Building
or are otherwise permitted by law.

     Section 12.2   Tenant shall, at Tenant's sole expense, (a) comply with all
laws, orders, ordinances, and regulations of federal, state, county, and
municipal authorities having jurisdiction over

                                       12
<Page>

the Premises, (b) comply with any directive, order or citation made pursuant to
law by any public officer requiring abatement of any nuisance or which imposes
upon Landlord or Tenant any duty or obligation arising from Tenant's occupancy
or use of the Premises or from conditions which have been created by or at the
request or insistence of Tenant, or required by reason of a breach of any of
Tenant's obligations hereunder or by or through other fault of Tenant, (c)
comply with all insurance requirements applicable to the Premises and (d)
indemnify and hold Landlord harmless from any loss, cost, claim or expense which
Landlord incurs or suffers by reason of Tenant's failure to comply with its
obligations under clauses (a), (b) or (c) above. If Tenant receives notice of
any such directive, order citation or of any violation of any law, order,
ordinance, regulation or any insurance requirement, Tenant shall promptly notify
Landlord in writing of such alleged violation and furnish Landlord with a copy
of such notice.

     Section 12.3   As used herein, the term "Hazardous Substance" shall mean
any substance, material, waste, gas or particulate matter which is regulated by
any local governmental authority, the State of Illinois, or the United States
Government, including, but not limited to (i) any material or substance which is
defined or designated as a "hazardous waste," "hazardous material," "hazardous
substance," "extremely hazardous waste," or "restricted hazardous waste" under
any provision of Illinois or federal law; (ii) oil or petroleum; (iii) asbestos
and asbestos-containing materials; (iv) polychlorinated biphenyls; and (v)
radioactive material. Except for Hazardous Substances which are used, stored and
disposed of in accordance with the manufacturer's instructions and all
applicable laws, codes, regulations, orders and ordinances, Tenant shall not,
nor shall Tenant permit any third party, to use, store, generate, treat, release
or dispose at, on or under the Premises, Building or Land, any Hazardous
Substance, and any such action shall constitute a default under this Lease.
Tenant shall indemnify, defend and hold Landlord, any managing agents and
leasing agents of the Building, and their respective agents, partners, officers,
directors and employees, harmless from all damages, costs, losses, expenses
(including, but not limited to, attorneys' fees, consulting fees and engineers'
fees) arising from or attributable to any breach by Tenant of the covenants
contained in this Section 12.3. Tenant's indemnification obligations hereunder
shall survive the termination or expiration of this Lease.

                        ARTICLE 13 - DEFAULT AND REMEDIES

     Section 13.1   The occurrence of any one or more of the following events
shall constitute an Event of Default (herein so called) of Tenant under this
Lease: (a) if Tenant fails to pay any Rent hereunder as and when such Rent
becomes due and such failure shall continue for more than five (5) days after
Landlord gives Tenant notice of past due Rent; (b) if Tenant fails to pay Rent
on time more than twice in any period of twelve (12) months, notwithstanding
that such payments have been made within the applicable cure period; (c) if the
Premises become vacant, deserted, or abandoned for more than ten (10)
consecutive days or if Tenant fails to take possession of the Premises on the
Commencement Date or promptly thereafter; (d) if Tenant permits to be done
anything which creates a lien upon the Premises and fails to discharge or bond
such lien or post such security with Landlord as is required by Article 11; (e)
if Tenant violates the provisions of Article 8 by attempting to make an
unpermitted assignment or sublease; (f) if Tenant fails to maintain in force all
policies of insurance required by this Lease and such failure shall continue for
more than ten (10) days after Landlord gives Tenant notice of such failure; (g)
if any petition is filed by or against Tenant or any guarantor of this Lease
under any present or future section or chapter of the Bankruptcy Code, or under
any similar law or statute of the United States or any state thereof (which, in
the case of an involuntary proceeding, is not permanently discharged, dismissed,
stayed, or vacated, as the case may be, within sixty (60) days of commencement),
or if any order for relief shall be entered against Tenant or any guarantor of
this Lease in any such proceedings; (h) if Tenant or any guarantor of this Lease
becomes insolvent or makes a transfer in fraud of creditors or makes an
assignment for the benefit of creditors; (i) if a receiver, custodian, or
trustee is appointed for the Premises or for all or substantially all of the
assets of Tenant or of any guarantor of this Lease, which appointment is not
vacated within sixty (60) days following the date of such appointment; (j) if
Tenant fails to

                                       13
<Page>

originally post or thereafter restore the Security Deposit as required pursuant
to Article 20 hereof; or (k) if Tenant fails to perform or observe any other
terms of this Lease and such failure shall continue for more than thirty (30)
days after Landlord gives Tenant notice of such failure, or, if such failure
cannot be corrected within such thirty (30) day period, if Tenant does not
commence to correct such default within said thirty (30) day period and
thereafter diligently prosecute the correction of same to completion within a
reasonable time and in any event prior to the time a failure to complete such
correction could cause Landlord to be subject to prosecution for violation of
any law, rule, ordinance or regulation or causes, or could cause, a default
under any mortgage, underlying lease, tenant leases or other agreements
applicable to the Project.

     Section 13.2   Upon the occurrence of any Event of Default, Landlord shall
have the right, at Landlord's option, to elect to do any one or more of the
following without further notice or demand to Tenant, Tenant hereby expressly
waiving the requirement of service of any statutory notice or demand as a
condition precedent to Landlord's exercising any of the following rights: (a)
terminate this Lease, in which event Tenant shall immediately surrender the
Premises to Landlord, and, if Tenant fails to so surrender, Landlord shall have
the right, without notice or demand, to enter upon and take possession of the
Premises and to expel or remove Tenant and its effects without being liable for
prosecution or any claim for damages therefor; and Tenant shall, and hereby
agrees to, indemnify Landlord for all loss and damage which Landlord suffers by
reason of such termination, including damages in an amount equal to the total of
(1) the costs of recovering the Premises and all other expenses incurred by
Landlord in connection with Tenant's default; (2) the unpaid Rent earned as of
the date of termination, plus interest at the Interest Rate; (3) the total Rent
which Landlord would have received under this Lease for the remainder of the
Term, but discounted to the then present value at a rate of eight percent (8%)
per annum, minus the fair market rental value on a net basis of the balance of
the Term as of the time of such default, discounted to the then present value at
a rate of eight percent (8%) per annum (but in no event shall the result thereof
be less than zero for the purposes of this Section); and (4) all other sums of
money and damages owing by Tenant to Landlord; or (b) enter upon and take
possession of the Premises without terminating this Lease and without being
liable to prosecution or any claim for damages therefor, and, if Landlord
elects, relet the Premises on such terms as Landlord deems advisable, in which
event Tenant shall pay to Landlord on demand the cost of repossession,
renovating, repairing and altering the Premises for a new tenant or tenants and
any deficiency between the Rent payable hereunder and the rent paid under such
reletting; provided, however, that Tenant shall not be entitled to any excess
payments received by Landlord from such reletting. Landlord's failure to relet
the Premises shall not release or affect Tenant's liability for Rent or for
damages; or (c) enter the Premises without terminating this Lease and without
being liable for prosecution or any claim for damages therefor and maintain the
Premises and repair or replace any damage thereto or do anything for which
Tenant is responsible hereunder. Tenant shall reimburse Landlord immediately
upon demand for any reasonable expenses which Landlord incurs in thus effecting
Tenant's compliance under this Lease, and Landlord shall not be liable to Tenant
for any damages with respect thereto.

     Section 13.3   No agreement to accept a surrender of the Premises and no
act or omission by Landlord or Landlord's agents during the Term shall
constitute an acceptance or surrender of the Premises unless made in writing and
signed by Landlord. No re-entry or taking possession of the Premises by Landlord
shall constitute an election by Landlord to terminate this Lease unless a
written notice of such intention is given to Tenant. No provision of this Lease
shall be construed as an obligation upon Landlord to mitigate Landlord's damages
under the Lease, except to the extent required by law.

     Section 13.4   No provision of this Lease shall be deemed to have been
waived by Landlord unless such waiver is in writing and signed by Landlord.
Landlord's acceptance of Rent following an Event of Default hereunder shall not
be construed as a waiver of such Event of Default. No custom or practice which
may grow up between the parties in connection with the terms of this Lease shall
be

                                       14
<Page>

construed to waive or lessen Landlord's right to insist upon strict performance
of the terms of this Lease, without a written notice thereof to Tenant from
Landlord.

     Section 13.5   The rights granted to Landlord in this Article 13 shall be
cumulative of every other right or remedy provided in this Lease or which
Landlord may otherwise have at law or in equity or by statute, and the exercise
of one or more rights or remedies shall not prejudice or impair the concurrent
or subsequent exercise of other rights or remedies or constitute a forfeiture or
waiver of Rent or damages accruing to Landlord by reason of any Event of Default
under this Lease. Tenant agrees to pay to Landlord all costs and expenses
incurred by Landlord in connection with an Event of Default and the enforcement
of this Lease, including all attorneys' fees incurred in connection with the
collection of any sums due hereunder or the enforcement of any right or remedy
of Landlord.

                             ARTICLE 14 - INSURANCE

     Section 14.1   A. Tenant, at its sole expense, shall obtain and keep in
force during the Term the following insurance: (a) commercial general public
liability insurance including personal injury, bodily injury, broad form
property damage; (b) Workers' Compensation, in form and amount as required by
applicable law; and (c) any other form or forms of insurance or any changes or
endorsements to the insurance required herein as Landlord, or any mortgagee or
lessor of Landlord, may reasonably require, from time to time, in form or in
amount. (d) If Tenant performs any repairs or alterations in the Premises,
during the period such repairs or alterations are being performed, Tenant shall
have builder's risk insurance for full replacement value covering all work
incorporated in the Building and all materials and equipment in or about the
Premises

     Section 14.2   Landlord shall insure the Building against damage with
casualty and commercial general public liability insurance, all in such amounts
and with such deductible as Landlord reasonably deems appropriate.
Notwithstanding any contribution by Tenant to the cost of insurance premiums, as
provided hereinabove, Landlord shall not be required to carry insurance of any
kind on Tenant's Premises Property, and Tenant hereby agrees that Tenant shall
have no right to receive any proceeds from any insurance policies carried by
Landlord.

     Section 14.3   Tenant shall not conduct or knowingly permit to be conducted
in the Premises any activity, or place any equipment in or about the Premises or
the Building, which will invalidate the insurance coverage in effect or increase
the rate of property insurance or other insurance on the Premises or the
Building, and Tenant shall comply with all requirements and regulations of
Landlord's casualty and liability insurer. If any invalidation of coverage or
increase in the rate of property insurance or other insurance occurs or is
threatened by any insurance company due to any act or omission by Tenant, or its
agents, employees, representatives, or contractors, such statement or threat
shall be conclusive evidence that the increase in such rate is due to such act
of Tenant or the contents or equipment in or about the Premises, and, as a
result thereof, Tenant shall be liable for such increase and shall be considered
Additional Rent payable with the next monthly installment of Base Rent due under
this Lease. In no event shall Tenant introduce or permit to be kept on the
Premises or brought into the Building any dangerous, noxious, radioactive or
explosive substance.

     Section 14.4   Landlord and Tenant each hereby waive any right of
subrogation and right of recovery or cause of action for injury or loss (i) to
the extent that such injury or loss is covered by fire, extended coverage or
similar policies covering real property or personal property (or which would
have been covered if Tenant or Landlord, as the case may be, was carrying the
insurance required by this Lease) and (ii) including death or disease to
respective employees of either as covered by Workers' Compensation (or would
have been covered if Tenant or Landlord, as the case may be, was carrying the
insurance required by this Lease). Said waivers shall be in addition to, and not
in limitation or derogation

                                       15
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or, any other waiver or release contained in this Lease. Written notice of the
terms of the above mutual waivers shall be given to the insurance carriers of
Landlord and Tenant if necessary to ensure the enforcement of said waivers on
behalf of insurers who may otherwise assume the rights of Landlord or Tenant.

                   ARTICLE 15 - DAMAGE BY FIRE OR OTHER CAUSE

     Section 15.1   Except as otherwise expressly provided in this Article 15,
if the Building (or any portion thereof), or the Premises, is damaged or
destroyed during the Term, Landlord shall diligently repair or restore the
Building or the Premises, as the case may be, as soon as reasonably possible to
substantially the condition in which the Building or the Premises, as the case
may be, existed immediately prior to such damage or destruction.

     Section 15.2   If continuation of Tenant's business from the Premises (or a
portion thereof) is not practical pending reconstruction of the Building (or
portion thereof), or the Premises, as the case may be, Rent due and payable
hereunder shall equitably abate for the portion of the Premises which is
unusable by Tenant for the period commencing with the date of such casualty
until the earlier of the date that reconstruction is substantially completed or
that Tenant resumes the conduct of its business from such portion of the
Premises.

     Section 15.3   If there is damage or destruction to the Building (whether
or not such damage affects the Premises) or to the Premises, to the extent that
Landlord reasonably determines that the Building or the Premises, as the case
may be, cannot be fully repaired or restored by Landlord within one-hundred
eighty (180) days from the date of the casualty, said determination to be
delivered to Tenant in writing within sixty (60) days of such casualty, Landlord
and (solely in the event that the Premises is damaged or destroyed) Tenant shall
have the option, upon written notice delivered to the other party within fifteen
(15) days of Landlord's written notice, to terminate this Lease. If Landlord
determines that the Building or the Premises, as the case may be, can be fully
repaired or restored within such one-hundred eighty (180) day period, or if it
is determined that such repair or restoration cannot be made within such period,
but neither party elects to terminate this Lease within the aforementioned
fifteen (15) days, this Lease shall remain in full force and effect and Landlord
shall diligently repair and restore the damage or destruction as soon as
reasonably possible.

     Section 15.4   Notwithstanding anything contained herein to the contrary,
in the event the damage or destruction of a material portion of the Building or
the Premises, as the case may be, is not fully covered by the insurance proceeds
received by Landlord, or if there are insufficient proceeds after any required
payments to mortgagees or lessors, Landlord may, within sixty (60) days of such
casualty, terminate this Lease by written notice to Tenant, effective as of the
date of such casualty. If Landlord does not elect to terminate this Lease, this
Lease shall remain in full force and effect and the Building shall be diligently
repaired and restored in accordance with Section 15.1 hereof.

     Section 15.5   If the Building or the Premises or any portion thereof is
destroyed by fire or other causes at any time during the last year of the Term,
then either Landlord or Tenant shall have the right, at the option of either
party, to terminate this Lease by giving written notice to the other within
sixty (60) days after the date of such destruction.

     Section 15.6   Landlord shall have no liability to Tenant for
inconvenience, loss of business, or annoyance arising from any repair of any
portion of the Premises or the Project. If the Premises are damaged by any
casualty, Tenant shall pay to Landlord that amount of Tenant's insurance
proceeds (or the amount which would have been received by Tenant if Tenant was
carrying the insurance required by this Lease) which insures such damage.

                                       16
<Page>

     Section 15.7   In the event of termination of this Lease pursuant to
Article 15, then all Rent shall be apportioned and paid to the date on which
possession is relinquished or the date of such damage, whichever last occurs,
and Tenant shall immediately vacate the Premises according to such notice of
termination; provided, however, that those provisions of this Lease which are
designated to cover matters of termination and the period thereafter shall
survive the termination hereof.

                            ARTICLE 16 - CONDEMNATION

     Section 16.1   If the whole or substantially the whole of the Building or
the Premises are taken or condemned by eminent domain or by any conveyance in
lieu thereof (such taking, condemnation or conveyance in lieu thereof being
hereinafter referred to as "condemnation"), the Term shall cease and this Lease
shall terminate on the date the condemning authority takes possession.

     Section 16.2   If any portion of the Building or Common Areas shall be
taken by condemnation (whether or not such taking includes any portion of the
Premises), which taking, in Landlord's judgment, is such that the Building or
Common Areas cannot be restored in an economically feasible manner for use
substantially as originally designed, then Landlord shall have the right, at
Landlord's option, to terminate this Lease, effective as of the date specified
by Landlord in a written notice of termination from Landlord to Tenant.

     Section 16.3   Intentionally Deleted.

     Section 16.4   If a portion, but less than substantially the whole, of the
Premises shall be taken by condemnation, then this Lease shall be terminated as
of the date of such condemnation as to the portion of the Premises so taken, and
unless Landlord exercises its option to terminate this Lease pursuant to Section
16.2, this Lease shall remain in full force and effect as to the remainder of
the Premises.

     Section 16.5   In the event of termination of this Lease pursuant to the
provisions of Article 16, the Rent shall be apportioned as of such date of
termination; provided, however, that those provisions of this Lease which are
designated to cover matters of termination and the period thereafter shall
survive the termination hereof.

     Section 16.6   All compensation awarded or paid upon a condemnation of any
portion of the Project shall belong to and be the property of Landlord without
participation by Tenant. Nothing herein shall be construed, however, to preclude
Tenant from prosecuting any claim directly against the condemning authority for
loss of business, loss of good will, moving expenses, damage to, and cost of
removal of, trade fixtures, furniture and other personal property belonging to
Tenant; provided, however, that Tenant shall make no claim which shall diminish
or adversely affect any award claimed or received by Landlord.

     Section 16.7   If any portion of the Project other than the Building is
taken by condemnation or if the temporary use or occupancy of all or any part of
the Premises shall be taken by condemnation during the Term, this Lease shall be
and remain unaffected by such condemnation, and Tenant shall continue to pay in
full the Rent payable hereunder. In the event of any such temporary taking for
use or occupancy of all or any part of the Premises, Tenant shall be entitled to
appear, claim, prove and receive the portion of the award for such taking that
represents compensation for use or occupancy of the Premises during the Term and
Landlord shall be entitled to appear, claim, prove and receive the portion of
the award that represents the cost of restoration of the Premises and the use or
occupancy of the Premises after the end of the Term hereof. In the event of any
such condemnation of any portion of the Project other than the Building,
Landlord shall be entitled to appear, claim, prove and receive all of that
award.

                                       17
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                          ARTICLE 17 - INDEMNIFICATION

     Section 17.1   Tenant shall, and hereby agrees to, indemnify and hold
Landlord, its agents and their respective employees harmless from any damage to
any property or injury to, or death of, any person arising from the use or
occupancy of the Common Areas and the Premises by Tenant, its agents, employees,
representatives, contractors, successors, assigns, licensees, or invitees,
except to the extent such damage is caused by the negligence or willful
misconduct of Landlord, its agents, or their respective employees. Tenant hereby
waives all claims against Landlord, its agents and their respective employees
for damage to any property or injury to, or death of, any person in, upon, or
about the Project, including the Premises, arising at any time and from any
cause other than to the extent by reason of the gross negligence or willful
misconduct of Landlord, its agents, or their respective employees including, but
not limited to, any injury or damage to persons or property resulting from the
condition or design of, or any defect in, the Building or its mechanical systems
or equipment which may exist or occur or from any fire, smoke, explosion,
falling plaster, steam, gas, electricity, water, rain, flood, snow, or leaks
from any part of the Premises or from the pipes, appliances, plumbing works,
roof, or subsurface of any floor or ceiling, or from the street or any other
place, or by dampness or by any other similar cause, or any such damage caused
by other tenants or persons in the Building or by occupants of adjacent property
thereto, or by the public, or caused by construction (unless caused solely by
the gross negligence or willful misconduct of Landlord, its agents, or their
respective employees) or by any private, public or quasi-public work. Tenant,
for itself and its agents, employees, representatives, contractors, successors,
assigns, invitees and licensees, expressly assumes all risks of injury or damage
to person or property, whether proximate or remote, resulting from the condition
of the Project or any part thereof. Landlord shall, and hereby agrees to,
indemnify and hold Tenant harmless from any damage to any property or injury to,
or death of any person arising from any occurrence in the Common Areas of the
Project to the extent any such damage, injury or death is the result of the
gross negligence or willful misconduct of Landlord, its agents, or their
respective employees and to the extent not covered by Tenant's insurance. The
foregoing indemnities shall include reasonable attorneys' fees, investigation
costs, and all other reasonable costs and expenses incurred by the indemnified
party in any connection therewith. The provisions of this Article 17 shall
survive the expiration or termination of this Lease with respect to any damage,
injury, or death occurring before such expiration or termination. If Landlord,
its agents, or their respective employees are made a party to any litigation
commenced by or against Tenant or relating to this Lease or to the Premises, and
provided that in any such litigation Landlord, its agents, or their respective
employees are not finally adjudicated to be solely at fault, then Tenant shall
pay all costs and expenses, including attorneys' fees and court costs, incurred
by or imposed upon Landlord, its agents, and their respective employees because
of any such litigation, and the amount of all such costs and expenses, including
attorneys' fees and court costs, shall be a demand obligation owing by Tenant to
Landlord, its agents, and their respective employees.

              ARTICLE 18 - SUBORDINATION AND ESTOPPEL CERTIFICATES

     Section 18.1   This Lease and all rights of Tenant hereunder are subject
and subordinate to all underlying leases now or hereafter in existence, and to
any supplements, amendments, modifications, and extensions of such leases
heretofore or hereafter made and to any deeds to secure debt, mortgages, or
other security instruments which now or hereafter cover all or any portion of
the Project or any interest of Landlord therein, and to any advances made on the
security thereof, and to any increases, renewals, modifications, consolidations,
replacements, and extensions of any of such mortgages. This provision is
declared by Landlord and Tenant to be self- operative and no further instrument
shall be required to effect such subordination of this Lease. Upon demand,
however, Tenant shall execute, acknowledge, and deliver to Landlord any further
instruments and certificates evidencing such subordination as Landlord, and any
mortgagee or lessor of Landlord shall reasonably require. Tenant shall not
unreasonably

                                       18
<Page>

withhold, delay, or defer its written consent to reasonable modifications in
this Lease which are a condition of any construction, interim or permanent
financing for the Project or any reciprocal easement agreement with facilities
in the vicinity of the Building, provided that such modifications do not
increase the obligations of Tenant hereunder or materially and adversely affect
Tenant's use and enjoyment of the Premises. This Lease is further subject and
subordinate to: (a) all applicable ordinances of any government authority having
jurisdiction over the Project, relating to easements, franchises, and other
interests or rights upon, across, or appurtenant to the Project; and (b) all
utility easements and agreements, now or hereafter created for the benefit of
the Project.

     Section 18.2   Notwithstanding the generality of the foregoing provisions
of Section 18.1, any mortgagee or lessor of Landlord shall have the right at any
time to subordinate any such mortgage or underlying lease to this Lease, or to
any of the provisions hereof, on such terms and subject to such conditions as
such mortgagee or lessor of Landlord may consider appropriate in its discretion.
At any time, before or after the institution of any proceedings for the
foreclosure of any such mortgage, or the sale of the Building under any such
mortgage, or the termination of any underlying lease, Tenant shall, upon request
of such mortgagee or any person or entities succeeding to the interest of such
mortgagee or the purchaser at any foreclosure sale ("Successor Landlord"),
automatically become the Tenant (or if the Premises has been validly subleased,
the subtenant) of the Successor Landlord, without change in the terms or other
provisions of this Lease (or, in the case of a permitted sublease, without
change in this Lease or in the instrument setting forth the terms of such
sublease); provided, however, that the Successor Landlord shall not be (i) bound
by any payment made by Tenant of Rent or Additional Rent for more than one (1)
month in advance, except for a Security Deposit previously paid to Landlord (and
then only if such Security Deposit has been deposited with and is under the
control of the Successor Landlord), (ii) bound by any termination, modification,
amendment or surrender of the Lease done without the Successor Landlord's
consent, (iii) liable for any damages or subject to any offset or defense by
Tenant to the payment of Rent by reason of any act or omission of any prior
landlord (including Landlord), or (iv) personally or corporately liable, in any
event, beyond the limitations on landlord liability set forth in Section 25.5 of
this Lease. This agreement of Tenant to attorn to a Successor Landlord shall
survive any such foreclosure sale, trustee's sale conveyance in lieu thereof or
termination of any underlying lease. Tenant shall upon demand at any time,
before or after any such foreclosure or termination execute, acknowledge, and
deliver to the Successor Landlord any written instruments and certificates
evidencing such attornment as such Successor Landlord may reasonably require;
provided, however, that Landlord shall use its reasonable efforts to require
that such agreement provide that upon such attornment as long as Tenant is not
in default hereunder, Tenant's possession of the Premises under this Lease shall
not be disturbed.

     Section 18.3   Tenant shall, from time to time, within ten (10) days after
request from Landlord, or from any mortgagee or lessor of Landlord, execute,
acknowledge and deliver in recordable form a certificate certifying, to the
extent true, that this Lease is in full force and effect and unmodified (or, if
there have been modifications, that the same is in full force and effect as
modified and stating the modifications); that the Term has commenced and the
full amount of the Rent then accruing hereunder; the dates to which the Rent has
been paid; that Tenant has accepted possession of the Premises and that any
improvements required by the terms of this Lease to be made by Landlord have
been completed to the satisfaction of Tenant; the amount, if any, that Tenant
has paid to Landlord as a Security Deposit; that no Rent under this Lease has
been paid more than thirty (30) days in advance of its due date; that the
address for notices to be sent to Tenant is as set forth in this Lease (or has
been changed by notice duly given and is as set forth in the certificate); that
Tenant, as of the date of such certificate, has no charge, lien, or claim of
offset under this Lease or otherwise against Rent or other charges due or to
become due hereunder; that, to the knowledge of Tenant, Landlord is not then in
default under this Lease; and such other matters as may be reasonably requested
by Landlord or any mortgagee or lessor of Landlord. Any such certificate may be
relied upon by Landlord, any Successor Landlord, or any mortgagee or lessor of
Landlord.

                                       19
<Page>

Landlord agrees periodically to furnish, when reasonably requested in Writing by
Tenant, certificates signed by Landlord containing information similar to the
foregoing information.

     Section 18.4   No act or failure to act on the part of Landlord which would
entitle Tenant under the terms of this Lease, or by law, to be relieved of
Tenant's obligations hereunder or to terminate this Lease, shall result in a
release of such obligations or a termination of this Lease unless (a) Tenant has
given notice by registered or certified mail to any mortgagee or lessor of
Landlord whose address shall have been furnished to Tenant, and (b) Tenant
offers such mortgagee or lessor of Landlord a reasonable opportunity to cure the
default, including time to obtain possession of the Premises by power of sale or
judicial foreclosure, if such should prove necessary to effect a cure.

                     ARTICLE 19 - SURRENDER OF THE PREMISES

     Section 19.1   Upon the Expiration Date or earlier termination of this
Lease, or upon any re-entry of the Premises by Landlord without terminating this
Lease pursuant to Section 13.2(b), Tenant, at Tenant's sole cost and expense,
shall peacefully vacate and surrender the Premises to Landlord in good order,
broom clean and in the same condition as at the beginning of the Term or as the
Premises may thereafter have been improved by Landlord or Tenant (provided that
Tenant's improvements were made with Landlord's consent), reasonable use and
wear thereof and repairs which are Landlord's obligations under Articles 9, 15
and 16 only excepted, and Tenant shall, pursuant to Section 10.3 hereof, remove
all of Tenant's Premises Property and turn over all keys for the Premises to
Landlord. Should Tenant continue to hold the Premises after the expiration or
earlier termination of this Lease, such holding over, unless otherwise agreed to
by Landlord in writing, shall constitute and be construed as a tenancy at
sufferance at monthly installments of Rent equal to (i) one hundred fifty
percent (150%) of the Rent in effect as of the date of expiration or earlier
termination for the first thirty (30) days of any such holdover, and (ii) two
hundred percent (200%) of the monthly portion of Rent in effect as of the date
of expiration or earlier termination after the first thirty (30) days of any
such holdover, and subject to all of the other terms, charges and expenses set
forth herein except any right to renew this Lease or to expand the Premises or
any right to additional services. Tenant shall also be liable to Landlord for
all consequential and other damage which Landlord suffers because of any holding
over by Tenant, and Tenant shall indemnify Landlord against all claims made by
any other tenant or prospective tenant against Landlord resulting from delay by
Landlord in delivering possession of the Premises to such other tenant or
prospective tenant. The provisions of this Article 19 shall survive the
expiration or earlier termination of this Lease.

                    ARTICLE 20 - LANDLORD'S RIGHT TO INSPECT

     Section 20.1   Landlord shall retain duplicate keys, cards, access codes or
other access means to all doors of the Premises. Landlord shall have the right
to enter the Premises at reasonable hours upon reasonable notice (or, in the
event of an emergency, at any hour without notice) (a) to exhibit the same to
present or prospective mortgagees, lessors or purchasers during the Term and to
prospective tenants during the last year of the Term, (b) to inspect the
Premises, (c) to confirm that Tenant is complying with all of Tenant's covenants
and obligations under this Lease, (d) to clean or make repairs required of
Landlord under the terms of this Lease, (e) to make repairs to areas adjoining
the Premises, and (f) to repair and service utility lines or other components of
the Building; provided, however, Landlord shall use reasonable efforts to
minimize interference with Tenant's business. Landlord shall not be liable to
Tenant for the exercise of Landlord's rights under this Article 20 and Tenant
hereby waives any claims for damages for any injury, inconvenience or
interference with Tenant's business, any loss of occupancy or quiet enjoyment of
the Premises, and any other loss occasioned thereby.

                                       20
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                          ARTICLE 21 - SECURITY DEPOSIT

     Section 21.1   Upon execution of this Lease, Tenant shall, as security for
the performance of Tenant's obligations under this Lease, deliver to Landlord
the amount of one month's Base Rent.

                       ARTICLE 22 - INTENTIONALLY DELETED

                ARTICLE 23 - OBSERVANCE OF RULES AND REGULATIONS

     Section 23.1   Tenant and Tenant's servants, employees, agents, visitors,
and licensees shall observe faithfully and comply strictly with all Rules and
Regulations (herein so called) attached to this Lease as such Rules and
Regulations may be changed from time to time. Landlord shall at all times have
the right to make reasonable changes in and additions to such Rules and
Regulations; provided Landlord gives Tenant prior notice of such changes and
provided that such new rules and regulations or changes in existing rules and
regulations do not conflict with this Lease, and do not materially interfere
with the lawful conduct of Tenant's business in the Premises. Any failure by
Landlord to enforce any of the Rules and Regulations now or hereafter in effect,
either against Tenant or any other tenant in the Building, shall not constitute
a waiver of any such Rules and Regulations. Landlord shall not be liable to
Tenant for the failure or refusal by any other tenant, guest, invitee, visitor,
or occupant of the Building to comply with any of the Rules and Regulations.

                              ARTICLE 24 - NOTICES

     Section 24.1   All notices, consents, demands, requests, documents, or
other communications (other than payment of Rent) required or permitted
hereunder (collectively, "notices") shall be in writing and be deemed given,
whether actually received or not, when dispatched for hand delivery (with signed
receipts) to the other party, or on the first Business Day after dispatched for
delivery by air express courier (with signed receipts) to the other party, or on
the second Business Day after deposit in the United States mail, postage
prepaid, certified, return receipt requested, except for notice of change of
address which shall be deemed given only upon actual receipt. The addresses of
the parties for notices are set forth in Article 1, or any such other addresses
subsequently specified by each party in notices given pursuant to this Section
24.1.

                           ARTICLE 25 - MISCELLANEOUS

     Section 25.1   PROFESSIONAL FEES.  In any action or proceeding brought by
either party against the other under this Lease, the prevailing party shall be
entitled to recover from the other party its professional fees for attorneys,
appraisers and accountants, its investigation costs, and any other legal
expenses and court costs incurred by the prevailing party in such action or
proceeding.

     Section 25.2   REIMBURSEMENTS.  Wherever the Lease requires Tenant to
reimburse or pay Landlord for the cost of any item, such costs will be the
reasonable and customary charge periodically established by Landlord for such
item or service. The cost may include a fifteen percent (15%) administrative
fee. All such charges shall be payable upon demand as Additional Rent.

     Section 25.3   SEVERABILITY.  Every agreement contained in this Lease is,
and shall be construed as, a separate and independent agreement. If any term of
this Lease or the application thereof to any person or circumstances shall be
invalid or unenforceable, the remaining agreements contained in this Lease shall
not be affected.

                                       21
<Page>

     Section 25.4   NON-MERGER.  There shall be no merger of this Lease with any
ground leasehold interest or the fee estate in the Project or any part thereof
by reason of the fact that the same person may acquire or hold, directly or
indirectly, this Lease or any interest in this Lease as well as any ground
leasehold interest or fee estate in the Project or any interest in such fee
estate.

     Section 25.5   LANDLORD'S LIABILITY.  Anything contained in this Lease to
the contrary notwithstanding, Tenant agrees that Tenant shall look solely to the
estate and property of Landlord in the Project for the collection of any
judgment or other judicial process requiring the payment of money by Landlord
for any default or breach by Landlord under this Lease, subject, however, to the
prior rights of any mortgagee or lessor of the Project. No other assets of
Landlord or any partners, shareholders, or other principals of Landlord shall be
subject to levy, execution or other judicial process for the satisfaction of
Tenant's claim.

     Section 25.6   FORCE MAJEURE.  Whenever the period of time is herein
prescribed for action to be taken by Landlord or Tenant, Landlord or Tenant
shall not be liable or responsible for, and there shall be excluded from the
computation for any such period of time, any delays due to force majeure, which
term shall include strikes, riots, acts of God, shortages of labor or materials,
weather, war, governmental approvals, laws, regulations, or restrictions, or any
other cause of any kind whatsoever which is beyond the reasonable control of
Landlord or Tenant. Force majeure shall not excuse or delay Tenant's obligation
to pay Rent or any other amount due under this Lease.

     Section 25.7   HEADINGS.  The article headings contained in this Lease are
for convenience only and shall not enlarge or limit the scope or meaning of the
various and several articles hereof. Words in the singular number shall be held
to include the plural, unless the context otherwise requires. All agreements and
covenants herein contained shall be binding upon the respective heirs, personal
representatives, and successors and assigns of the parties thereto.

     Section 25.8   SUCCESSORS AND ASSIGNS.  All agreements and covenants herein
contained shall be binding upon the respective heirs, personal representatives,
successors and assigns or the parties hereto. If there is more than one Tenant,
the obligations hereunder imposed upon Tenant shall be joint and several. If
there is a guarantor of Tenant's obligations hereunder, Tenant's obligations
shall be joint and several obligations of Tenant and such guarantor, and
Landlord need not first proceed against Tenant hereunder before proceeding
against such guarantor, and any such guarantor shall not be released from its
guarantee for any reason, including any amendment of this Lease, any forbearance
by Landlord or waiver of any of Landlord's rights, the failure to give Tenant or
such guarantor any notices, or the release of any party liable for the payment
or performance of Tenant's obligations hereunder. Notwithstanding the foregoing,
nothing contained in this Section 25.8 shall be deemed to override Article 8.

     Section 25.9   LANDLORD'S REPRESENTATIONS.  Neither Landlord nor Landlord's
agents or brokers have made any representations or promises with respect to the
Premises, the Building, the Land, or any other portions of the Project except as
herein expressly set forth and all reliance with respect to any representations
or promises is based solely on those contained herein. No rights, easements, or
licenses are acquired by Tenant under this Lease by implication or otherwise
except as, and unless, expressly set forth in this Lease.

     Section 25.10  ENTIRE AGREEMENT; AMENDMENTS.  This Lease and the Exhibits
and Riders attached hereto set forth the entire agreement between the parties
and cancel all prior negotiations, arrangements, brochures, agreements, and
understandings, if any, between Landlord and Tenant regarding the subject matter
of this Lease. No amendment or modification of this Lease shall be binding or
valid unless expressed in writing executed by both parties hereto.

                                       22
<Page>

     Section 25.11  TENANT'S AUTHORITY.  If Tenant signs as a corporation,
execution hereof shall constitute a representation and warranty by Tenant that
Tenant is a duly organized and existing corporation, that Tenant has been and is
qualified to do business in the State of Illinois and in good standing with the
State of Illinois, that the corporation has full right and authority to enter
into this Lease, and that all persons signing on behalf of the corporation were
authorized to do so by appropriate corporate action. If Tenant signs as a
partnership, trust, or other legal entity, execution hereof shall constitute a
representation and warranty by Tenant that Tenant has complied with all
applicable laws, rules, and governmental regulations relative to Tenant's right
to do business in the State of Illinois, that such entity has the full right and
authority to enter into this Lease, and that all persons signing on behalf of
Tenant were authorized to do so by any and all necessary or appropriate
partnership, trust, or other actions.

     Section 25.12  GOVERNING LAW.  This Lease shall be governed by and
construed under the laws of the State of Illinois. Any action brought to enforce
or interpret this Lease shall be brought in the court of appropriate
jurisdiction in Cook County, Illinois. Should any provision of this Lease
require judicial interpretation, Landlord and Tenant hereby agree and stipulate
that the court interpreting or considering same shall not apply the presumption
that the terms hereof shall be more strictly construed against a party by reason
of any rule or conclusion that a document should be construed more strictly
against the party who itself or through its agents prepared the same, it being
agreed that all parties hereto have participated in the preparation of this
Lease and that each party had full opportunity to consult legal counsel of its
choice before the execution of this Lease.

     Section 25.13  TENANT'S USE OF NAME OF THE BUILDING.  Tenant shall not,
without the prior written consent of Landlord, use the name of the Building for
any purpose other than as the address of the business to be conducted by Tenant
in the Premises, and Tenant shall not do or permit the doing, of anything in
connection with Tenant's business or advertising (including brokers' flyers
promoting sublease space) which in the reasonable judgment of Landlord may
reflect unfavorably on Landlord or the Building or confuse or mislead the public
as to any apparent connection or relationship between Tenant and Landlord, the
Building, or the Land.

     Section 25.14  ANCIENT LIGHTS.  Any elimination or shutting off of light,
air, or view by any structure which may be erected on lands adjacent to the
Building shall in no way affect this Lease and Landlord shall have no liability
to Tenant with respect thereto.

     Section 25.15  CHANGES TO PROJECT BY LANDLORD.  Landlord shall have the
unrestricted right to make changes to all portions of the Project in Landlord's
reasonable discretion for the purpose of improving access or security to the
Project or the flow of pedestrian and vehicular traffic therein. Landlord shall
have the right at any time, without the same constituting an actual or
constructive eviction and without incurring any liability to Tenant therefor, to
change the arrangement or location of entrances or passageways, doors and
doorways, corridors, elevators, stairs, bathrooms, or any other Common Areas so
long as reasonable access to the Premises remains available. Landlord shall also
have the right to (a) rearrange, change, expand or contract portions of the
Project constituting Common Areas (b) to use Common Areas while engaged in
making improvements, repairs or alterations to the Project, or any portion
thereof, and (c) to do and perform such other acts and make such other changes
in to or with respect to the Project, or any portion thereof, as Landlord may,
in the exercise of sound business judgment, deem to be appropriate. Landlord
shall be entitled to change the name or address of the Building or the Project.
Landlord shall have the right to close, from time to time, the Common Areas and
other portions of the Project for such temporary periods as Landlord deems
legally sufficient to evidence Landlord's ownership and control thereof and to
prevent any claim of adverse possession by, or any implied or actual dedication
to, the public or any party other than Landlord.

     Section 25.16  TIME OF ESSENCE.  Time is of the essence of this Lease.

                                       23
<Page>

     Section 25.17  LANDLORD'S ACCEPTANCE OF LEASE.  The submission of this
Lease to Tenant shall not be construed as an offer and Tenant shall not have any
rights with respect thereto unless said Lease is consented to by mortgagee, and
any lessor of Landlord, to the extent such consent is required, and Landlord
executes a copy of this Lease and delivers the same to Tenant.

     Section 25.18  PERFORMANCE BY TENANT.  All covenants and agreements to be
performed by Tenant under any of the terms of this Lease shall be performed by
Tenant, at Tenant's sole cost and expense, and without any abatement of Rent. If
Tenant shall fail to pay any Rent, other than Base Rent, required to be paid by
it hereunder or shall fail to perform any other act on its part to be performed
hereunder, and such failure shall continue for longer than the period of cure,
if any, permitted in Section 13.1, Landlord may, at its option, without waiving
or releasing Tenant from obligations of Tenant, make any such payment or perform
any such other act on behalf of Tenant. All sums so paid by Landlord and all
necessary incidental costs, together with interest thereon at the Interest Rate,
from the date of such payment by Landlord, shall be payable to Landlord on
demand. Tenant covenants to pay any such sums, and Landlord shall have (in
addition to any other right or remedy of Landlord) the same rights and remedies
in the event of the non-payment thereof by Tenant as in the case of default by
Tenant in the payment of Rent.

     Section 25.19  FINANCIAL STATEMENTS.  At any time during the term of this
Lease, Tenant shall, upon ten (10) days prior written notice from Landlord,
provide Landlord with a current financial statement and financial statements of
the two (2) years prior to the current financial statement year. Such statement
shall be prepared in accordance with generally accepted accounting principles
and, if such is the normal practice of Tenant, shall be audited by an
independent certified public accountant.

     Section 25.20  ELECTRONIC PAYMENTS.  At Landlord's option, all payments due
under this Lease shall be made by electronic funds transfer to an account
designated in writing by Landlord.

                       ARTICLE 26 - INTENTIONALLY DELETED

                         ARTICLE 27 - OTHER DEFINITIONS

     When used in this Lease, the terms set forth hereinbelow shall have the
following meanings: (a) "Business Days" shall mean Monday through Friday (except
for Holidays); "Business Hours" shall mean 8:00 a.m. to 6:00 p.m. on Monday
through Friday (except for Holidays); and "Holidays" shall mean those holidays
designated by Landlord, which holidays shall be consistent with those holidays
designated by landlords of other buildings in the Woodridge area. (b) "Common
Areas" shall mean those certain areas and facilities of the Building and those
certain improvements to the Land which are from time to time provided by
Landlord for the use of tenants of the Building and their employees, clients,
customers, licensees and invitees or for use by the public, which facilities and
improvements include any and all corridors, vending areas, cafeterias,
bathrooms, electrical and telephone rooms, mechanical rooms, janitorial areas,
conference centers, fitness centers and other similar facilities of the Building
and any and all grounds, parks, landscaped areas, outside sitting areas,
sidewalks, walkways, pedestrianways, and generally all other improvements
located on the Land, or which connect the Land to other buildings. (c) "Central"
shall mean that portion of any Building system or component which is within the
core and/or common to and/or serves or exists for the benefit of other tenants
in the Building. (d) The words "day" or "days" shall refer to calendar days,
except where "Business Days" are specified. (e) The words "herein," "hereof,"
"hereby," "hereunder" and words of similar import shall be construed to refer to
this Lease as a whole and not to any particular Article or Section thereof
unless expressly so stated. (f) The words "include" and "including" shall be
construed as if followed by the phrase "without being limited to." (g) Reference
to Landlord as having "no liability to Tenant" or being "without liability to
Tenant" or

                                       24
<Page>

words of like import shall mean that Tenant is not entitled to terminate this
Lease, or to claim actual or constructive eviction, partial or total, or to
receive any abatement or diminution of rent, or to be relieved in any manner of
any of Tenant's other obligations hereunder, or to be compensated for loss or
injury suffered or to enforce any other right or kind of liability whatsoever
against Landlord under or with respect to this Lease or with respect to Tenant's
use or occupancy of the Premises. (h) A "repair" shall be deemed to include such
rebuilding, replacement and restoration as may be necessary to achieve and
maintain good working order and condition. (i) The "termination of this Lease"
and words of like import includes the expiration of the Term or the cancellation
of this Lease pursuant to any of the provisions of this Lease or to law. Upon
the termination of this Lease, the Term shall end at 11:59 p.m. on the date of
termination as if such date were the Expiration Date, and neither party shall
have any further obligation or liability to the other after such termination
except (i) as shall be expressly provided for in this Lease and (ii) for such
obligations as by their nature or under the circumstances can only be, or by the
provisions of this Lease, may be, performed after such termination and, in any
event, unless expressly otherwise provided in this Lease, any liability for a
payment (which shall be apportioned as of the date of such termination) which
shall have accrued to or with respect to any period ending at the time of
termination shall survive the termination of this Lease. (j) The "terms of this
Lease" shall be deemed to include all terms, covenants, conditions, provisions,
obligations, limitations, restrictions, reservations and agreements contained in
this Lease. (k) "Tenant" shall be deemed to include Tenant's successors and
assigns (to the extent permitted by Landlord) and any and all occupants of the
Premises permitted by Landlord and claiming by, through or under Tenant. (1) A
"year" shall mean a calendar year.

                      ARTICLE 28 - WAIVER OF TRIAL BY JURY

     TENANT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY,
WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE
LEASE, THE PREMISES, THE PROJECT, OR ANY ACTS OF LANDLORD OR TENANT IN
CONNECTION THEREWITH.

                                       25
<Page>

     IN WITNESS WHEREOF, Landlord and Tenant have set their hands and seals
hereunto and have caused this Lease to be executed by duly authorized officials
thereof, as of the day and year set forth on the cover page hereof.

                               LANDLORD:

                               FLAVIN VENTURES LLC, a Delaware limited liability
                               company

                               By:        /s/ Michael T. Flavin
                                  ----------------------------------------------
                                  Name:   MICHAEL T. FLAVIN
                                       -----------------------------------------
                                  Title:  MEMBER
                                        ----------------------------------------

                               TENANT:

                               ADVANCED LIFE SCIENCES, INC., an Illinois
                               corporation

                               By:        /s/ Suseelan R Pookote
                                  ----------------------------------------------
                                  Name:   Suseelan R Pookote
                                       -----------------------------------------
                                  Title:  Executive VP, Corp. Development
                                          --------------------------------------

                                       26
<Page>

                                    EXHIBIT A

                           FLOOR PLAN OF THE PREMISES

                                       A-1
<Page>

                                    EXHIBIT B

                                    THE LAND

                                       B-1
<Page>

                                    EXHIBIT C

                                  RENT SCHEDULE

<Table>
<Caption>
 LEASE     BASE RENT PER      APPROX. BASE RENT      APPROX. BASE RENT      PERCENT
  YEAR         ANNUM             PER MONTH              PER SQ. FT.         INCREASE
 -----     -------------      -----------------      -----------------      --------
   <S>       <C>                  <C>                    <C>                   <C>
   1         $   210,000          $   17,500             $      14             3%
   2         $   216,300          $   18,025             $   14.42             3%
   3         $   222,789          $   18,566             $   14.85             3%
   4         $   231,700          $   19,308             $   15.45             4%
   5         $   240,968          $   20,081             $   16.06             4%
</Table>

                                       C-1
<Page>

                                  RIDER NO. 1

                             RULES AND REGULATIONS

     1.   Sidewalks, doorways, vestibules, halls, stairways and similar areas
shall not be obstructed by tenants or their officers, agents, servants, and
employees, or used for any purpose other than ingress and egress to and from the
Premises and for going from one part of the Building to another part of the
Building.

     2.   Plumbing fixtures and appliances shall be used only for the purpose
for which constructed, and no sweepings, rubbish, rags, or other unsuitable
material shall be thrown or placed therein. The cost of repairing any stoppage
or damage resulting to any such fixtures or appliances from misuse on the part
of a tenant or such tenant's officers, agents, servants, and employees shall be
paid by such tenant.

     3.   No signs, posters, advertisements, or notices shall be painted or
affixed on any of the windows or doors, or other part of the Building, except of
such color, size, and style, and in such places, as shall be first approved in
writing by the building manager. No nails, hooks, or screws shall be driven into
or inserted in any part of the Building, except by Building maintenance
personnel, except, however, Tenant may hang light pieces of artwork.

     4.   The Premises shall not be used for conducting any barter, trade,
peddling, or exchange of goods or sale through promotional give-away gimmicks or
any business involving the sale of second-hand goods, insurance salvage stock,
or fire sale stock, and shall not be used for any auction or pawnshop business,
any fire sale, bankruptcy sale, going-out-of- business sale, moving sale, bulk
sale, or any other business which, because of merchandising methods or
otherwise, would tend to lower the first-class character of the Building.

     5.   Tenants shall not do anything, or permit anything to be done, in or
about the Building, or bring or keep anything therein, that will in any way
increase the possibility of fire or other casualty or obstruct or interfere with
the rights of, or otherwise injure or annoy, other tenants, or do anything in
conflict with the valid pertinent laws, rules, or regulations of any
governmental authority.

     6.   Tenant shall not place a load upon any floor of the premises which
exceeds to floor load per square foot which such floor was designed to carry or
which is allowed by applicable building code. Landlord may prescribe the weight
and position of all safes and heavy installations which Tenant desires to place
in the premises so as properly to distribute the weight thereof. All damage done
to the Building by the improper placing of heavy items which overstress the
floor will be repaired at the sole expense of the Tenant.

     7.   A tenant shall notify the building manager when safes, furniture or
other heavy equipment are to be taken into or out of the Building. Moving of
such items shall be done under the supervision of the building manager, after
receiving written permission from him/her. A tenant shall be required to use
protective coverings on walls, elevators and floors to prevent damage caused by
the moving of such items.

     8.   Corridor doors, when not in use, shall be kept closed.

                                        1
<Page>

     9.   All deliveries must be made via the service entrance and service
elevators during normal business hours or as otherwise directed or scheduled by
Landlord. Prior approval must be obtained from Landlord for any deliveries that
must be received after normal business hours.

     10.  Each tenant shall cooperate with building employees in keeping the
premises neat and clean.

     11.  Nothing shall be swept or thrown into the corridors, halls, elevator
shafts, or stairways. No birds, animals, or reptiles, or any other creatures,
shall be brought into or kept in or about the building.

     12.  Should a tenant require telegraphic, telephonic, anunciator, or any
other communication service, Landlord will direct the electricians and
installers where and how the wires are to be introduced and placed, and none
shall be introduced or placed except as Landlord shall direct.

     13.  Tenants shall not make or permit any improper noises or odors in the
Building, or otherwise interfere in any way with other tenants or persons having
business with them.

     14.  No equipment of any kind shall be operated on the premises that could
in any way annoy any other tenant in the Building without written consent of
Landlord.

     15.  Business machines and mechanical equipment belonging to Tenant which
cause noise and/or vibration that may be transmitted to the structure of the
Building or to any leased space so as to be objectionable to Landlord or any
tenants in the Building shall be placed and maintained by Tenant, at Tenant's
expense, in setting of cork, rubber, or spring type noise and/or vibration
eliminators sufficient to eliminate vibration and/or noise.

     16.  Tenants shall not use or keep in the Building any inflammable or
explosive fluid or substance, or any illuminating material, unless it is battery
powered, UL approved.

     17.  Tenants employees or agents, or anyone else who desires to enter the
Building after normal business hours, may be required to provide appropriate
identification and sign in upon entry, and sign out upon leaving, giving the
location during such person's stay and such person's time of arrival and
departure, and shall otherwise comply with any reasonable access control
procedures as Landlord may from time to time institute.

     18.  Landlord has the right to evacuate the Building in event of emergency
or catastrophe.

     19.  If any governmental license or permit shall be required for the proper
and lawful conduct of Tenant's business, Tenant, before occupying the Premises,
shall procure and maintain such license or permit and submit it for Landlord's
inspection. Tenant shall at all times comply with the terms of any such license
or permit.

     20.  Landlord shall have the right, exercisable without notice and without
liability to any tenant, to change the name and street address of the Building.

     21.  Tenants shall not be allowed to install vending machines within the
Premises without the consent of Landlord. Tenants shall not be allowed to
prepare or cook food within the Premises other than

                                        2
<Page>

employees of Tenants using a microwave or toaster oven installed in a kitchen or
dining area approved by Landlord to heat meals for their own consumption.

     22.  All locks and keys for entry doors and doors within the Premises shall
be provided by Landlord, at Tenant's cost, except the initial entry doors locks
and keys shall be at Landlord's cost.

     23.  Landlord shall not be responsible for any loss or damage to any
personalty items of Tenants or their employees.

     24.  Tenant shall not at any time store any materials, including but not
limited to, waste, products, vehicles, or equipment on the outside of the
Building.

     25.  Tenant shall not allow trucks being used for delivery to remain at the
delivery dock beyond the time necessary for loading or unloading.

     26.  Landlord reserves the right to rescind any of these Rules and
Regulations and make such other and further rules and regulations not
inconsistent with the express terms of the Lease as in the judgment of Landlord
shall from time to time be needed for the safety, protection, care, and
cleanliness of the Building, the operation thereof, the preservation of good
order therein, and the protection and comfort of its tenants, their agents,
employees, and invitees, which Rules and Regulations when made and notice
thereof given to a tenant shall be binding upon him in like manner as if
originally herein prescribed.

                                        3QuickLinks
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Exhibit 4.9    
    

EXECUTION COPY  

AMENDMENT AND RESTATEMENT AGREEMENT  

Dated 2nd December, 2004  

 Between  

 PREEM PETROLEUM AB (publ)  

 as borrower  

 PREEM HOLDINGS AB (publ)  

 as guarantor  

 and  

 SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

 as Facility Agent  

relating to a €325,000,000 Facilities Agreement dated 28th June, 2004  

 with amendment co-ordinated by  

 SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

 and  

 SVENSKA HANDELSBANKEN AB (publ)  

         

  

CONTENTS  

	Clause
 
	 	 
	 	Page

	

1.	
 	

Interpretation	
 	

1
	2.	 	Amendments and Acknowledgements	 	1
	3.	 	Representations	 	2
	4.	 	Fees	 	2
	5.	 	Expenses	 	2
	6.	 	Miscellaneous	 	2
	7.	 	Governing law	 	2
	8.	 	Enforcement	 	2
	
Schedule
 
	
 	

 
	
 	

 

	

1.	
 	

Amended and Restated Credit Agreement	
 	

4
	

Signatories	
 	

5

   THIS AGREEMENT is dated 2nd December, 2004 

BETWEEN: 

	(1)
	PREEM PETROLEUM AB (publ) (the Company);

	(2)
	PREEM HOLDINGS AB (publ) as guarantor (the Parent);

	(3)
	THE FINANCIAL INSTITUTIONS listed in the signature pages to this Agreement as Lenders (in this capacity the  Lenders);

	(4)
	SKANDINAVISKA ENSKILDA BANKEN AB (publ) and SVENSKA HANDELSBANKEN AB (publ) (in this capacity the Mandated Lead
Arrangers);

	(5)
	SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) and SVENSKA HANDELSBANKEN AB (publ) (in this capacity the  Co-ordinators); and

	(6)
	SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) as facility agent (in this capacity the Facility
Agent). 

BACKGROUND  

This
Agreement is supplemental to and amends a credit agreement dated 28th June, 2004 between, among others, the Company as borrower, the Parent as guarantor and the Facility Agent (the  Credit Agreement).

IT IS AGREED as follows: 

1.     INTERPRETATION  

1.1   Definitions  

	(a)
	In
this Agreement: 

Appointment Letter means the letter dated 27th October, 2004 between the Company and the Co-ordinators. 

Effective Date means the date of this Agreement. 

Amended and Restated Credit Agreement means the Credit Agreement as amended and restated in the form set out in Schedule 1 (Amended and Restated
Credit Agreement). 

	(b)
	Capitalised
terms defined in the Amended and Restated Credit Agreement have, unless expressly defined in this Agreement, the same meaning in this Agreement. 

1.2   Construction  

The
principles of construction set out in the Amended and Restated Credit Agreement will have effect as if set out in this Agreement. 

2.     AMENDMENTS AND ACKNOWLEDGEMENTS  

	2.1
	The
Credit Agreement shall, with effect on and from the Effective Date, be amended and restated in the form set out in Schedule 1 (Amended and Restated Credit Agreement) so
that the rights and obligations of the parties to this Agreement relating to their performance under the Credit Agreement shall on and after the Effective Date, be governed by and construed in
accordance with the terms of the Amended and Restated Credit Agreement. 

1

 
	2.2
	The
Parent's obligations and assurances under Clause 16 (Guarantee and Indemnity) of the Credit Agreement remain and will remain in full force and effect and apply to the
Obligors' obligations under the Amended and Restated Credit Agreement and the Finance Documents as defined therein. 

3.     REPRESENTATIONS  

The
Representations set out in Clause 17 (Representations) of the Credit Agreement are made by each of the Obligors (as appropriate) on the date of this Agreement and on the Effective Date, in
each case as if references to the Credit Agreement are references to the Credit Agreement as amended and restated by this Agreement with reference to the facts and circumstances then existing. 

4.     FEES  

The
Company must pay to the Facility Agent within five days of the date of this Agreement: 

	(a)
	the
amendment fee for the Lenders; and

	(b)
	the
co-ordination fee for the Co-ordinators, 

in
each case in an amount and in the manner referred to in the Appointment Letter. 

5.     EXPENSES  

The
Company must pay to the Facility Agent the amount of all costs and expenses (including legal fees), supported by an invoice or other evidence of incurrence, reasonably incurred by it in connection
with the negotiation, preparation, printing, execution of this Agreement. 

6.     MISCELLANEOUS  

	6.1
	Each
of this Agreement, the Amended and Restated Credit Agreement and the Appointment Letter, is a Finance Document.

	6.2
	Subject
to the terms of this Agreement, the Credit Agreement will remain in full force and effect and, on and from the Effective Date, the Credit Agreement and this Agreement will be
read and construed as one document. 

7.     GOVERNING LAW  

This
Agreement is governed by English law. 

8.     ENFORCEMENT  

8.1   Jurisdiction  

	(a)
	The
English courts have non-exclusive jurisdiction to settle any dispute in connection with this Agreement.

	(b)
	The
English courts are the most appropriate and convenient courts to settle any such dispute and each Obligor waives objection to those courts on the grounds of inconvenient forum or
otherwise in relation to proceedings in connection with this Agreement. 

2

 
	(c)
	This
Clause is for the benefit of the Finance Parties only. To the extent allowed by law, a Finance Party may take:

	(i)
	proceedings
in any other court; and

	(ii)
	concurrent
proceedings in any number of jurisdictions. 

8.2   Service of process  

	(a)
	Each
Obligor not incorporated in England and Wales irrevocably appoints LeBoeuf, Lamb Corporate Services Limited, No. 1 Minster Court, London EC3R 7YL as its agent under this
Agreement for service of process in any proceedings before the English courts.

	(b)
	If
any person appointed as process agent is unable for any reason to act as agent for service of process, the Company (on behalf of the Obligors) must immediately appoint another
agent on terms acceptable to the Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose.

	(c)
	Each
Obligor agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings.

	(d)
	This
Clause does not affect any other method of service allowed by law. 

8.3   Waiver of immunity  

Each
Obligor irrevocably and unconditionally: 

	(a)
	agrees
not to claim any immunity from proceedings brought by a Finance Party against it in relation to this Agreement and to ensure that no such claim is made on its behalf;

	(b)
	consents
generally to the giving of any relief or the issue of any process in connection with those proceedings; and

	(c)
	waives
all rights of immunity in respect of it or its assets. 

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

3

  

 
 

SCHEDULE 1    
    
    To the Amendment and Restatement Agreement    
    
    AMENDED AND RESTATED CREDIT AGREEMENT    
    

4

 
 
 

SIGNATORIES    
    
    To the Amendment and Restatement Agreement    
    

Company  

PREEM PETROLEUM AB (publ)  

By:
/s/ Michael G:son Löw 

By:
/s/ Per Höjgård 

Parent  

PREEM HOLDINGS AB (publ)  

By:
/s/ Michael G:son Löw 

By:
/s/ Per Höjgård 

Mandated Lead Arrangers  

SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

SVENSKA HANDELSBANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

Co-ordinators  

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

SVENSKA HANDELSBANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

Lenders  

SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

SVENSKA HANDELSBANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

DNB NOR BANK ASA  

By:
/s/ Åsa Samuelsson 

DANSKE BANK A/S  

By:
/s/ Åsa Samuelsson 

5

 

HSH NORDBANK AG, COPENHAGEN BRANCH  

By:
/s/ Åsa Samuelsson 

NORDDEUTSCHE LANDESBANK, STOCKHOLM BRANCH  

By:
/s/ Åsa Samuelsson 

NORDEA BANK AB (publ)  

By:
/s/ Åsa Samuelsson 

SWEDBANK (FÖRENINGSSPARBANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

ING BANK N.V.  

By:
/s/ Åsa Samuelsson 

ISLANDSBANKI HF.  

By:
/s/ Åsa Samuelsson 

Facility Agent  

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

By:
/s/ Åsa Samuelsson 

6

SCHEDULE 1  

 To the Amendment and Restatement Agreement  

 AMENDED AND RESTATED CREDIT AGREEMENT  

FACILITIES AGREEMENT  

DATED 28TH JUNE, 2004

(as amended and restated by an amendment and restatement agreement

Dated 2nd December, 2004 on the Effective Date)

€300,000,000  

CREDIT FACILITY

FOR

PREEM PETROLEUM AB (publ)

GUARANTEED BY PREEM HOLDINGS AB (publ)  

 ARRANGED BY  

SKANDINAVISKA ENSKILDA BANKEN AB (publ)  

 and  

 SVENSKA HANDELSBANKEN AB (publ)  

         

  

CONTENTS  

	Clause
 
	 	 
	 	Page

	

1.	
 	

Interpretation	
 	

1
	2.	 	Facility	 	9
	3.	 	Purpose	 	10
	4.	 	Conditions Precedent	 	10
	5.	 	Utilisation—Loans	 	11
	6.	 	Optional Currencies	 	12
	7.	 	Repayment and Cancellation	 	15
	8.	 	Prepayment and Cancellation	 	16
	9.	 	Interest	 	19
	10.	 	Terms	 	20
	11.	 	Market Disruption	 	21
	12.	 	Taxes	 	22
	13.	 	Increased Costs	 	25
	14.	 	Mitigation	 	25
	15.	 	Payments	 	26
	16.	 	Guarantee and Indemnity	 	28
	17.	 	Representations	 	30
	18.	 	Information Covenants	 	33
	19.	 	Financial Covenants	 	36
	20.	 	General Covenants	 	39
	21.	 	Default	 	45
	22.	 	The Administrative Parties	 	48
	23.	 	Evidence and Calculations	 	52
	24.	 	Fees	 	53
	25.	 	Indemnities and Break Costs	 	53
	26.	 	Expenses	 	55
	27.	 	Amendments and Waivers	 	55
	28.	 	Changes to the Parties	 	56
	29.	 	Disclosure Of Information	 	59
	30.	 	Set-off	 	59
	31.	 	Pro Rata Sharing	 	59
	32.	 	Severability	 	60
	33.	 	Counterparts	 	61
	34.	 	Notices	 	61
	35.	 	Language	 	62
	36.	 	Governing Law	 	62
	37.	 	Enforcement	 	63
	
Schedule
 
	
 	

 
	
 	

 

	

1.	
 	

Original Parties	
 	

64
	2.	 	Conditions precedent documents	 	65
	3.	 	Form of Request	 	66
	4.	 	Calculation of the Mandatory Cost	 	67
	5.	 	Form of Transfer Certificate	 	68
	6.	 	Form of Compliance Certificate	 	70
	7.	 	Form of legal opinion of Allen & Overy LLP	 	71

   THIS AGREEMENT was originally dated 28th June, 2004, but was amended and restated on the terms of an agreement dated 2nd December, 2004, and is  BETWEEN: 

	(1)
	PREEM PETROLEUM AB (publ) (the Company);

	(2)
	PREEM HOLDINGS AB (publ) as guarantor (the Parent);

	(3)
	SKANDINAVISKA ENSKILDA BANKEN AB (publ) and SVENSKA HANDELSBANKEN AB (publ) as mandated lead arrangers (in this capacity the  Mandated Lead Arrangers);

	(4)
	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Parties) as original lenders (in this capacity the  Original
Lenders); and

	(5)
	SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) as facility agent (in this capacity the Facility Agent). 

IT IS AGREED as follows: 

1.     INTERPRETATION  

1.1   Definitions  

In
this Agreement: 

Affiliate means a Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company. 

Amendment Agreement means the amendment and restatement agreement dated 2nd December, 2004 on the terms of which this Agreement was amended and
restated. 

Availability Period means: 

	(a)
	for
a Term Loan, the period from and including the Signing Date to and including 28th June, 2006; and

	(b)
	for
a Revolving Loan, the period from and including the Signing Date to and including the date one day prior to the Revolving Credit Final Maturity Date. 

Break Costs means the amount (if any) which a Lender is entitled to receive under Clause 25.3 (Break Costs) as compensation if any part of a Loan
or overdue amount is repaid or prepaid. 

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

	(a)
	if
on that day a payment in or a purchase of a currency (other than euro) is to be made, the principal financial centre of the country of that currency; or

	(b)
	if
on that day a payment in or a purchase of euro is to be made, which is also a TARGET Day. 

Charges has the meaning given to it in Clause 20.15 (Group Contribution). 

Commitment means a Commitment, as so designated, of a Lender under a particular Facility. 

Company Group means the Company and its Subsidiaries. 

Compliance Certificate means a certificate substantially in the form of Schedule 6 (Form of Compliance Certificate) setting out, among other
things, calculation of the covenants set out in Clause 19 (Financial Covenants). 

1

 

Default means: 

	(a)
	an
Event of Default; or

	(b)
	an
event which would be (with the expiry of a grace period, the giving of notice or the making of any determination that the event would be reasonably likely to have a Material
Adverse Effect, in each case under the Finance Documents, or any combination of them) an Event of Default. 

Effective Date has the meaning given to it in the Amendment Agreement. 

EURIBOR means for a Term of any Loan or overdue amount in euro: 

	(a)
	the
applicable Screen Rate; or

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

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

euro or € means the single currency of the Participating Member States. 

Event of Default means an event specified as such in Clause 21 (Default). 

Facility means a credit facility made available under this Agreement. 

Facility Office means the office(s) notified by a Lender to the Facility Agent: 

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

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

as
the office(s) through which it will perform its obligations under this Agreement. 

Fee Letter means any letter entered into by reference to this Agreement between one or more Finance Parties and the Company setting out the amount of
certain fees referred to in this Agreement. 

Final Maturity Date means the Term Loan Final Maturity Date or the Revolving Credit Final Maturity Date, as appropriate. 

Finance Document means: 

	(a)
	this
Agreement;

	(b)
	the
Amendment Agreement;

	(c)
	a
Fee Letter;

	(d)
	a
Transfer Certificate; or

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

Finance Party means a Lender, a Mandated Lead Arranger or the Facility Agent. 

Financial Indebtedness means any indebtedness for or in respect of: 

	(a)
	moneys
borrowed;

	(b)
	any
acceptance credit; 

2

 

	(c)
	any
bond, note, debenture, loan stock or other similar instrument;

	(d)
	any
redeemable preference share;

	(e)
	any
agreement treated as a finance or capital lease in accordance with generally accepted accounting principles in the jurisdiction of incorporation of the Company;

	(f)
	receivables
sold or discounted (otherwise than on a non-recourse basis);

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

	(h)
	any
derivative transaction protecting against or benefiting from fluctuations in any rate or price (and, except for non-payment of an amount, the then mark to market value
of the derivative transaction will be used to calculate its amount);

	(i)
	any
other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing;

	(j)
	any
counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; or

	(k)
	any
guarantee, indemnity or similar assurance against financial loss of any person in respect of any item referred to in the above paragraphs. 

In
calculating the amount of Financial Indebtedness at any time, no item listed above shall be counted more than once. 

GAAP means generally accepted accounting principles in Sweden. 

Group means the Parent Group or the Company Group, as the context may require. 

Group Contribution means the tax contribution (Sw. Koncernbidrag) paid by the Company to the Parent as a
dividend each year. 

Holding Company of any other person, means a company in respect of which that other person is a Subsidiary. 

HYB Indenture means the indenture dated 10th May, 2004 entered into by the Company in relation to the HYB Issue. 

HYB Issue means the euro100,000,000 9 per cent. senior subordinated notes due 2014 issued by the Company. 

HYB Note means each note issued pursuant to the HYB Issue. 

IBOR means: 

	(a)
	in
respect of euros, EURIBOR;

	(b)
	in
respect of Swedish Kronor, STIBOR; and

	(c)
	in
respect of any other currency, LIBOR. 

Increased Cost means: 

	(a)
	an
additional or increased cost;

	(b)
	a
reduction in the rate of return from a Facility or on its overall capital; or

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

3

 

which
is incurred or suffered by a Finance Party or any of its Affiliates but only to the extent attributable to that Finance Party having entered into any Finance Document or funding or performing
its obligations under any Finance Document. 

ISO-cracker Investment means the investment by the Company in the gas-oil plant at the Scanraff refinery. 

Lender means: 

	(a)
	an
Original Lender; or

	(b)
	any
person which becomes a Lender after the date of this Agreement. 

LIBOR means for a Term of any loan or overdue amount in any currency other than euro or Swedish Kronor: 

	(a)
	the
applicable Screen Rate; or

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

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

Loan means, unless otherwise stated in this Agreement, the principal amount of each borrowing under this Agreement or the principal amount outstanding
of that borrowing. 

Mandatory Cost means the cost of complying with certain regulatory requirements, expressed as a percentage rate per annum and calculated by the Facility
Agent under Schedule 4 (Calculation of the Mandatory Cost). 

Majority Lenders means, at any time, Lenders: 

	(a)
	whose
share in the outstanding Loans then aggregate 662/3 per cent. or more of the aggregate of all the outstanding Loans;

	(b)
	if
there is no Loan then outstanding, whose undrawn Commitments then aggregate 662/3 per cent. or more of the Total Commitments; or

	(c)
	if
there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 662/3 per cent. or more of the Total Commitments
immediately before the reduction. 

Margin means a rate per annum determined by the Facility Agent in accordance with Clause 9 (Interest). 

Material Adverse Effect means a material adverse effect on: 

	(a)
	the
business, assets or financial condition of any Obligor or the Parent Group as a whole; or

	(b)
	the
ability of any Obligor to perform its obligations under any Finance Document; or

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

Obligor means the Company or the Parent. 

Original Financial Statements means the audited consolidated financial statements of, in the case of the Parent, the Parent Group, and, in the case of
the Company, the Company Group, in each case for the year ended 31st December, 2003. 

4

 

Parent Group means the Parent and its Subsidiaries. 

Participating Member State means a member state of the European Communities that adopts or has adopted the euro as its lawful currency under the
legislation of the European Community for Economic Monetary Union. 

Party means a party to this Agreement. 

Pro Rata Share means: 

	(a)
	for
the purpose of determining a Lender's share in a utilisation of a Facility, the proportion which its Commitment under that Facility bears to all the Commitments under that
Facility; and

	(b)
	for
any other purpose on a particular date:

	(i)
	the
proportion which a Lender's share of the Loans (if any) bears to all the Loans;

	(ii)
	if
there is no Loan outstanding on that date, the proportion which its Commitment bears to the Total Commitments on that date;

	(iii)
	if
the Total Commitments have been cancelled, the proportion which its Commitment bore to the Total Commitments immediately before being cancelled; or

	(iv)
	when
the term is used in relation to a Facility, the above proportions but applied only to the Loans and Commitments for that Facility. 

For
the purpose of sub-paragraph (iv) above, the Facility Agent will determine, in the case of a dispute whether the term in any case relates to a particular Facility. 

Project Consultant means KPMG, Stockholm Branch. 

Rate Fixing Day means: 

	(a)
	the
second TARGET Day before the first day of a Term for a Loan denominated in euro; and

	(b)
	the
second Business Day before the first day of a Term for a Loan denominated in U.S. Dollars or Swedish Kronor, 

or
such other day as the Facility Agent determines is generally treated as the rate fixing day by market practice in the relevant interbank market. 

Reference Accounting Principles means the accounting principles and policies used in the preparation of the Original Financial Statements. 

Reference Banks means the Facility Agent, Svenska Handelsbanken AB (publ) and Nordea Bank AB and any other bank or financial institution appointed as
such by the Facility Agent under this Agreement. 

Repayment Instalment means an instalment for repayment of the Term Loans as set out in Clause 7.1 (Repayment and cancellation of Term Loans). 

Repeating Representations means the representations which are deemed to be repeated under Clause 17.19 (Times for making representations). 

Request means a request for a Loan, substantially in the form of Schedule 3 (Form of Request). 

Revolving Credit Commitments means: 

	(a)
	for
an Original Lender, the amount set opposite its name in Schedule 1 (Original Parties) under the heading "Revolving Credit
Commitments" and the amount of any other Revolving Credit Commitment it acquires; and 

5

 

	(b)
	for
any other Lender, the amount of any Revolving Credit Commitment it acquires, 

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

Revolving Credit Facility means the euro150,000,000 multi-currency revolving credit facility referred to in Clause 2.2 (Revolving Credit
Facility). 

Revolving Credit Final Maturity Date means the date falling three years after the Signing Date. 

Revolving Loan means a Loan under the Revolving Credit Facility and identified as such in its Request. 

Rollover Loan means, subject to Clause 6.4(d), one or more Revolving Loans: 

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

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

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

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

Scanraff means Skandinaviska Raffinaderi AB Scanraff. 

Screen Rate means the relevant offered rate which appears on: 

	(a)
	for
LIBOR, page LIBOR 01 or LIBOR 02 (as appropriate);

	(b)
	for
EURIBOR, page EURIBOR 01;

	(c)
	for
STIBOR, page SIOR; 

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

Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or arrangement having
a similar effect. 

Senior Indebtedness has the meaning given to it in the HYB Indenture. 

Senior Secured Notes means the 105/8% senior secured notes due 2011 of the Parent issued under an indenture dated as of 10th April, 2001. 

Shareholder Loan means a loan made available by the Parent to the Company on the terms of a Shareholder Loan Agreement, which loan has not been
converted into equity in accordance with Clause 20.13 (Documents). 

Shareholder Loan Agreement means an agreement on the terms of which the Parent has lent money to the Company. 

Signing Date means the date on which this Agreement was originally entered into, being 28th June, 2004. 

STIBOR means for a Term of any loan or overdue amount in Swedish Kronor: 

	(a)
	the
applicable Screen Rate; or

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

6

 

as
of 11.00 a.m. (Stockholm time) on the Rate Fixing Day for the offering of deposits in Swedish Kronor for a period comparable to that Term. 

Subsidiary means a subsidiary within the meaning of chapter 1, section 5 of the Swedish Companies Act 1975:1385. 

Swedish Kronor or SEK means the lawful currency for the time being of the Kingdom of Sweden. 

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

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any related penalty or interest). 

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

Tax Payment means a payment made by an Obligor to a Finance Party in any way relating to a Tax Deduction or under any indemnity given by that Obligor in
respect of Tax under any Finance Document. 

Term means each period determined under this Agreement by reference to which interest on a Loan or an overdue amount is calculated. 

Term Loan means a Loan under the Term Loan Facility and identified as such in its Request. 

Term Loan Commitment means: 

	(a)
	for
an Original Lender, the amount set opposite its name in Schedule 1 (Original Parties) under the heading "Term Loan
Commitments" and the amount of any other Term Loan Commitment it acquires; and

	(b)
	for
any other Lender, the amount of any Term Loan Commitment it acquires, 

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

Term Loan Facility means the euro150,000,000 multi-currency term loan facility referred to in Clause 2.1 (Term Loan Facility). 

Term Loan Final Maturity Date means the date falling five years after the Signing Date. 

Total Commitments means the aggregate of the Commitments of all the Lenders. 

Total Revolving Credit Commitment means the aggregate of the Revolving Credit Commitments of all the Lenders. 

Total Term Loan Commitment means the aggregate of the Term Loan Commitments of all the Lenders. 

Transfer Certificate means a certificate, substantially in the form of Schedule 5 (Form of Transfer Certificate), with such amendments as the
Facility Agent may approve or reasonably require or any other form agreed between the Facility Agent and the Company. 

U.K. means the United Kingdom. 

U.S. Dollars means the lawful currency for the time being of the United States of America. 

Utilisation Date means each date on which a Facility is utilised (being the first day of the first Term in relation to a utilisation under the Term Loan
Facility and the first day of a Term in relation to a utilisation under the Revolving Credit Facility). 

7

 

1.2   Construction  

	(a)
	In
this Agreement:

	(i)
	Adjusted Net Debt, Adjusted Equity, Grace
Period and Measurement Period have the meaning given to them in Clause 19 (Financial Covenants); and

	(ii)
	Margin Period and Margin Reset Date have the meaning given to them in
Clause 9.5 (Margin Adjustments).

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

	(i)
	an  amendment includes a supplement, novation, restatement or re-enactment and  amended will be construed
accordingly;

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

	(iii)
	an
authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration or
notarisation;

	(iv)
	disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary, and  dispose will be construed accordingly;

	(v)
	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money;

	(vi)
	a
person includes any individual, company, corporation, unincorporated association or body (including a partnership,
trust, joint venture or consortium), government, state, agency, organisation or other entity whether or not having separate legal personality;

	(vii)
	a
regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force
of law but, if not having the force of law, being of a type with which any person to which it applies is accustomed to comply) of any governmental, inter-governmental or supranational body, agency,
department or regulatory, self-regulatory or other authority or organisation;

	(viii)
	a
currency is a reference to the lawful currency for the time being of the relevant country;

	(ix)
	a
Default being outstanding means that it has not been remedied or waived;

	(x)
	a
provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any subordinate legislation;

	(xi)
	a
Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to, this Agreement;

	(xii)
	a
Party or any other person includes its successors in title, permitted assigns and permitted transferees;

	(xiii)
	a
Finance Document or another document is a reference to that Finance Document or other document as amended; and

	(xiv)
	a
time of day is a reference to London time.

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

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

8

 

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

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

	(d)
	Unless
expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of
Third Parties) Act 1999 and, notwithstanding any term of any Finance Document, no consent of any third party is required for any variation (including any release or compromise of any liability) or
termination of that Finance Document.

	(e)
	Unless
the contrary intention appears:

	(i)
	a
reference to a Party will not include that Party if it has ceased to be a Party under this Agreement;

	(ii)
	an
amount in euro is payable only in the euro unit;

	(iii)
	a
word or expression used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or
notice as in this Agreement; and

	(iv)
	any
obligation of an Obligor under the Finance Documents which is not a payment obligation remains in force for so long as any payment obligation of an Obligor is or
may be outstanding under the Finance Documents.

	(f)
	The
headings in this Agreement do not affect its interpretation. 

2.     FACILITY  

2.1   Term Loan Facility  

Subject
to the terms of this Agreement, the Lenders make available to the Company a multi-currency term loan facility in an aggregate amount equal to the Total Term Loan Commitments. 

2.2   Revolving Credit Facility  

Subject
to the terms of this Agreement, the Lenders make available to the Company a multi-currency revolving credit facility in an aggregate amount equal to the Total Revolving Credit Commitments. 

2.3   Nature of a Finance Party's rights and obligations  

Unless
otherwise agreed by all the Finance Parties: 

	(a)
	the
obligations of a Finance Party under the Finance Documents are several;

	(b)
	failure
by a Finance Party to perform its obligations does not affect the obligations of any other Party under the Finance Documents;

	(c)
	no
Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents;

	(d)
	the
rights of a Finance Party under the Finance Documents are separate and independent rights; 

9

  

	(e)
	a
Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those rights; and

	(f)
	a
debt arising under the Finance Documents to a Finance Party is a separate and independent debt. 

3.     PURPOSE  

3.1   Loans  

Each
Loan may only be used in or towards: 

	(a)
	partially
financing the ISO-cracker Investment; or

	(b)
	general
corporate purposes. 

3.2   No obligation to monitor  

No
Finance Party is bound to monitor or verify the utilisation of the Facility. 

4.     CONDITIONS PRECEDENT  

4.1   Conditions precedent documents  

Subject
to Clause 4.2 (Conditions precedent—Term Loan Facility), a Request may not be given until the Facility Agent has received all of the documents and evidence set out in
Schedule 2 (Conditions Precedent Documents) in form and substance satisfactory to the Facility Agent. The Facility Agent must give notification that it has received all of the documents and
evidence as set out in Schedule 2 (Conditions Precedent Documents) to the Company and the Lenders promptly upon being so satisfied. 

4.2   Conditions precedent—Term Loan Facility  

A
Request in respect of a Loan to be drawn under the Term Loan Facility may not be given until the Facility Agent has received a certificate from the Project Consultant addressed to the Lenders
confirming that the amount to be drawn down by the Company under the Term Loan Facility is in
accordance with the agreed budget for the ISO-cracker Investment and is correctly due and payable at such time. 

4.3   Further conditions precedent  

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

	(a)
	the
Repeating Representations are correct in all material respects;

	(b)
	no
Default or, in the case of a Rollover Loan, no Event of Default is outstanding or would result from the Loan; and

	(c)
	the
Facility Agent has received confirmation that the Loan will constitute Senior Indebtedness for the purposes of the HYB Indenture. 

10

 

4.4   Maximum number  

Unless
the Facility Agent agrees, a Request may not be given if, as a result, there would be more than 12 Loans outstanding. 

5.     UTILISATION—LOANS  

5.1   Giving of Requests  

	(a)
	The
Company may borrow a Loan by giving to the Facility Agent a duly completed Request.

	(b)
	Unless
the Facility Agent otherwise agrees, the latest time for receipt by the Facility Agent of a duly completed Request is 11.00 a.m. one Business Day before the Rate Fixing
Day for the proposed borrowing.

	(c)
	Each
Request is irrevocable. 

5.2   Completion of Requests  

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

	(i)
	it
identifies the Facility the Loan applies to;

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

	(iii)
	the
amount of the Loan requested:

	(A)
	is
a minimum of euro10,000,000 and an integral multiple of euro1,000,000 (or equivalent in accordance with Clause 6 (Optional Currencies));

	(B)
	is
not more than the maximum undrawn amount available under this Agreement for Loans under the relevant Facility on the proposed Utilisation Date; or

	(C)
	is
such other amount as the Facility Agent may agree; and

	(iv)
	the
proposed currency and Term complies with this Agreement.

	(b)
	Only
one Loan may be requested in a Request. 

5.3   Advance of Loan  

	(a)
	The
Facility Agent must promptly notify each Lender of the details of the requested Loan and the amount of its share in that Loan.

	(b)
	The
amount of each Lender's share of the Loan will be its Pro Rata Share on the proposed Utilisation Date.

	(c)
	No
Lender is obliged to participate in a Loan if, as a result:

	(i)
	its
share in the Loans under a Facility would exceed its Commitment for that Facility; or

	(ii)
	the
Loans would exceed the Total Commitments for that Facility.

	(d)
	If
the conditions set out in this Agreement have been met, each Lender must make its share in the Loan available to the Facility Agent for the Company through its Facility Office on
the Utilisation Date. 

11

 

6.     OPTIONAL CURRENCIES  

6.1   General  

In
this Clause: 

Agent's Spot Rate of Exchange means the Facility Agent's spot rate of exchange for the purchase of the relevant currency in the London foreign exchange
market with euro as of 11.00 a.m. on a particular day. 

euro Amount of a Loan or part of a Loan means: 

	(a)
	if
the Loan is denominated in euro, its amount;

	(b)
	if
the Loan is a Term Loan denominated in an Optional Currency, its equivalent in euro if it had first been drawn down and had remained denominated in euro, adjusted to reflect any
repayment, prepayment, consolidation or splitting of that Term Loan; or

	(c)
	in
the case of a Revolving Loan denominated in an Optional Currency, its equivalent in euro calculated on the basis of the Agent's Spot Rate of Exchange one Business Day before the
Rate Fixing Day for that Term. 

Optional Currency means any currency (other than euro) in which a Loan may be denominated under this Agreement. 

6.2   Selection  

	(a)
	The
Company must select the currency of a Loan in its Request. 

	(b)	 	(i)	The amount of a Loan requested in an Optional Currency must be a minimum euro Amount of 10,000,000 and, if required by the Facility Agent an integral multiple of 1,000,000 units of that currency.

	(ii)
	The
amount of a Loan in an Optional Currency will be its euro Amount notionally converted into that Optional Currency at the Agent's Spot Rate of Exchange one Business
Day before the Rate Fixing Day for the first Term of that Loan.

	(c)
	Unless
the Facility Agent otherwise agrees, the Loans may not be denominated at any one time in more than three currencies. 

6.3   Conditions relating to Optional Currencies  

	(a)
	A
Loan may be denominated in an Optional Currency for a Term if:

	(i)
	that
Optional Currency is readily available in the amount required and freely convertible into euro in the relevant interbank market on the Rate Fixing Day and the first
day of that Term; and

	(ii)
	that
Optional Currency is U.S. Dollars or Swedish Kronor or has been previously approved by the Facility Agent (acting on the instructions of all the Lenders).

	(b)
	If
the Facility Agent has received a request from the Company for a currency to be approved as an Optional Currency, the Facility Agent must, within five Business Days, confirm to the
Company:

	(i)
	whether
or not the Lenders have given their approval; and

	(ii)
	if
approval has been given, the minimum amount (and, if required, integral multiples) for any Loan in that currency. 

12

 

6.4   Revocation of currency  

	(a)
	Notwithstanding
any other term of this Agreement, if before 9.30 a.m. on any Rate Fixing Day the Facility Agent receives notice from a Lender that:

	(i)
	the
Optional Currency requested is not readily available to it in the relevant interbank market in the amount and for the period required; or

	(ii)
	participating
in a Loan in the proposed Optional Currency might contravene any law or regulation applicable to it, 

the
Facility Agent must give notice to the Company to that effect promptly and in any event before 11.00 a.m. on that day. 

	(b)
	In
this event:

	(i)
	that
Lender must participate in the Loan in euro; and

	(ii)
	the
share of that Lender in the Loan and any other similarly affected Lender(s) will be treated as a separate Loan denominated in euro during that Term.

	(c)
	Any
part of a Loan treated as a separate Loan under this Subclause will not be taken into account for the purposes of any limit on the number of Loans or currencies outstanding at any
one time.

	(d)
	A
Revolving Loan will still be treated as a Rollover Loan if it is not denominated in the same currency as the maturing Revolving Loan by reason only of the operation of this
Subclause. 

6.5   Optional Currency equivalents  

	(a)
	The
equivalent in euro of a Loan or part of a Loan in an Optional Currency for the purposes of calculating:

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

	(ii)
	the
amount of a Loan;

	(iii)
	the
share of a Lender in a Loan;

	(iv)
	the
amount of any repayment or prepayment of a Loan; or

	(v)
	the
undrawn amount of a Lender's Commitment, 

is
its euro Amount. 

	(b)
	The
rate of exchange to be used for calculating the amount in euro of any repayment or prepayment of a Term Loan in an Optional Currency is that last used for determining the current
amount of that Term Loan in that Optional Currency. 

6.6   Term Loans—change of currency  

	(a)
	A
Term Loan will remain denominated in the same currency through successive Terms, unless the currency is changed under paragraph (c) below.

	(b)
	The
Company may change the currency of a Term Loan with effect from the start of a Term by giving notice to the Facility Agent by 9.00 a.m. three Business Days before the first
day of that Term. The Term Loan will remain denominated in that currency until it is changed again under this Subclause. 

13

 

	(c)
	If
a Term Loan is to be denominated in different currencies during successive Terms:

	(i)
	the
Company must repay that Term Loan on the last day of its current Term in the currency in which it is then denominated (the old
currency); and

	(ii)
	the
Lenders must, subject to the terms of this Agreement, re-advance the Term Loan in the currency in which the Company requires the Term Loan to be
denominated for the next Term (the new currency). 

The
amount of the Loan in the new currency will be calculated by reference to its euro Amount. 

	(d)
	Alternatively,
if the Facility Agent and the Company agree:

	(i)
	the
Facility Agent may apply the amount (or so much of that amount as is necessary) of the Term Loan in the new currency to purchase an amount of the old currency
sufficient to discharge the obligation of the Company to repay the Term Loan in the old currency;

	(ii)
	the
Facility Agent must apply any amount of the old currency purchased under sub-paragraph (i) above towards repaying the Term Loan in the old
currency;

	(iii)
	the
Facility Agent will promptly notify the Company if there is a shortfall or an excess;

	(iv)
	if
there is a shortfall, the Company must pay to the Facility Agent on the date the Term Loan is due to be repaid in the old currency an amount in the old currency
equal to the shortfall; and

	(v)
	if
there is an excess, the Facility Agent must pay to the Company on the date the Term Loan is due to be repaid in the old currency an amount in the new currency equal
to the excess.

	(e)
	If
the day on which the old currency is due to be repaid is not also a Business Day for the new currency:

	(i)
	the
Facility Agent must notify the Company and the Lenders promptly;

	(ii)
	the
Term Loan will remain in the old currency until the next day which is a Business Day for both the old and the new currencies; and

	(iii)
	during
this period, the Term Loan will have Terms running from one Business Day to the next Business Day.

	(f)
	The
Company must indemnify the Facility Agent against any loss or liability incurred by the Facility Agent as a result of any foreign exchange contract entered into for the purpose of
this Clause. 

6.7   Term Loans—continuing in same Optional Currency  

	(a)
	If
a Term Loan is to be denominated in the same Optional Currency during two successive Terms, the Facility Agent must calculate the amount of the Term Loan in the Optional Currency
for the second of those Terms.

	(b)
	The
amount of the Term Loan in the Optional Currency for the second Term will be the amount determined by notionally converting into that Optional Currency the euro Amount of the Term
Loan on the basis of the Agent's Spot Rate of Exchange one Business Day before the Rate Fixing Day for that Term.

	(c)
	If
the amount calculated is less than the existing amount of that Term Loan in the Optional Currency during the first Term, the Company must repay, subject to paragraph (e)
below, on 

14

 

the
last day of the first Term an amount equal to the difference and the amount of the Term Loan will be reduced accordingly. 

	(d)
	If
the amount calculated is more than the existing amount of that Term Loan in the Optional Currency during the first Term, each Lender must advance, subject to paragraph (e)
below, on the last day of the first Term its Pro Rata Share of the difference and the amount of the Term Loan will be increased accordingly.

	(e)
	If
the calculation made by the Facility Agent under paragraph (a) above shows that the amount of the Term Loan in the Optional Currency has increased or decreased by less than
five per cent. since it was borrowed or (if later) the most recent adjustment under paragraph (c) or (d) above, no payment is required under paragraph (c) or (d) above and
the amount of the Term Loan will remain the same. 

6.8   Conditions precedent  

The
obligation of each Lender under this Clause to re-advance its share of a Term Loan in a new currency or make any payment increasing the amount of a Term Loan in an Optional Currency is
subject to the condition precedent that on the date of the relevant payment: 

	(a)
	the
Repeating Representations are correct in all material respects; and

	(b)
	no
Default is outstanding or would result from that payment. 

6.9   Notification  

The
Facility Agent must notify the Lenders and the Company of the relevant euro Amount (and the applicable Agent's Spot Rate of Exchange) promptly after they are ascertained. 

7.     REPAYMENT AND CANCELLATION  

7.1   Repayment and cancellation of Term Loans  

	(a)
	On
each date set out in the table below, the Company must repay the Term Loans in an aggregate amount equal to the amount set out opposite that date (as those amounts may be reduced
in accordance with Clause 8.8 (Partial prepayment of Term Loans)), 

	Date of Repayment Instalment
 
	 	Amount of Repayment Instalment (euro)

	The date falling 30 months after the Signing Date	 	25,000,000
	The date falling 36 months after the Signing Date	 	25,000,000
	The date falling 42 months after the Signing Date	 	25,000,000
	The date falling 48 months after the Signing Date	 	25,000,000
	The date falling 54 months after the Signing Date	 	25,000,000
	Term Loan Final Maturity Date	 	Balance of Term Loans

	(b)
	The
Company must repay any outstanding Term Loan on the Term Loan Final Maturity Date.

	(c)
	On
each date when a Repayment Instalment is due to be paid, the Total Term Loan Commitments will be irrevocably cancelled by an amount equal to that Repayment Instalment. 

15

 

	(d)
	No
amount repaid under paragraphs (a) and (b) above may be reborrowed. 

7.2   Repayment of Revolving Loans  

	(a)
	The
Company must repay each Revolving Loan made to it in full on the last day of its Term.

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

8.     PREPAYMENT AND CANCELLATION  

8.1   Mandatory prepayment—illegality  

	(a)
	A
Lender must notify the Company promptly if it becomes aware that it is unlawful under any applicable law in any relevant jurisdiction for that Lender to perform any of its
obligations under a Finance Document or to fund or maintain its share in any Loan.

	(b)
	After
notification under paragraph (a) above:

	(i)
	the
Company must repay or prepay the share of that Lender in each Loan made to it on the date specified in paragraph (c) below; and

	(ii)
	the
Commitment of that Lender will be immediately cancelled.

	(c)
	The
date for repayment or prepayment of a Lender's share in a Loan will be:

	(i)
	the
last day of the current Term of that Loan; or

	(ii)
	if
earlier, the date specified by the Lender in the notification under paragraph (a) above and which must not be earlier than the last day of any applicable
grace period allowed by law. 

8.2   Mandatory prepayment—change of control  

	(a)
	For
the purposes of this Clause a change of control occurs if Mr Mohammed Al-Amoudi ceases to be the legal and
beneficial owner, directly or indirectly, of more than 90 per cent. of the issued share capital of the Company;

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

	(c)
	After
a change of control, the Company and the Lenders shall (if the Company or the Majority Lenders so require) in good faith enter into negotiations for a period of up to
60 days concerning the continuance of the Facility.

	(d)
	If:

	(i)
	no
mutual agreement between the Company and all the Lenders has been reached at the end of such period of negotiation; or

	(ii)
	no
such period of negotiation is requested by the Company or the Majority Lenders, the Facility Agent must by not less than five Business Days notice to the Company:

	(A)
	cancel
the Total Commitments; and

	(B)
	declare
all outstanding Loans, together with accrued interest and all other amounts accrued under the Finance Documents, to be immediately due and payable.

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

16

 

8.3   Mandatory Prepayment—sale of assets  

	(a)
	On
receipt after the date of this Agreement by any member of the Company Group of Net Disposal Proceeds from the disposal of assets (other than proceeds in respect of Permitted
Disposals) the Company shall procure, if the amount received is more than SEK50,000,000 in aggregate in respect of any financial year of the Parent Group, that an amount equal to the amount by which
that aggregate amount exceeds SEK50,000,000 is promptly used to prepay any Loans then outstanding.

	(b)
	Any
amount to be applied in prepayment of Loans under this Clause 8.3 must be applied:

	(i)
	first, in prepayment of outstanding Term Loans; and

	(ii)
	second, in prepayment of outstanding Revolving Loans.

	(c)
	Upon
prepayment of any Loans under paragraph (a) above the relevant Total Commitments will be automatically cancelled by an amount equal to the aggregate amount of the Loans
prepaid and the cancellation will be applied against the relevant Commitments of each Lender pro rata.

	(d)
	In
the event that any Net Disposal Proceeds which would otherwise be required to be applied in prepayment of Loans under this Clause, are received prior to the date on which a
Facility is first utilised, that Facility shall be cancelled upon that receipt by that amount. Such cancellation shall reduce the Commitment of the Lenders rateably for that Facility.

	(e)
	For
the purposes of this Clause:

	(i)
	Permitted Disposals means:

	(A)
	any
disposal by a member of the Company Group made in the ordinary course of trade; or

	(B)
	any
disposal permitted by subparagraphs (i) to (iv) and (vi) to (ix)) of Clause 20.6(b) (Disposals);

	(ii)
	Net Disposal Proceeds means the gross total proceeds received by members of the Company Group in cash from all
disposals, leases or transfers of fixed assets (including, for the avoidance of doubt, Swedish gas and oil assets) or shares of the Company Group (other than Permitted Disposals) less:

	(A)
	all
reasonable out of pocket expenses and other fees, costs and expenses reasonably incurred by members of the Company Group in connection with such disposal, lease or transfer;

	(B)
	the
VAT or similar tax paid or payable by any member of the Company Group in connection with such disposal, lease or transfer;

	(C)
	any
income, capital gains or other taxes incurred and required to be paid by any member of the Company Group in connection with such disposal, lease or transfer as reasonably
determined in good faith by such member of the Company Group on the basis of the tax rates applicable to the gain (if any) and after taking into account all applicable credits, deductions and
allowances; and

	(D)
	provisions
for liabilities arising in connection with the disposal (provided that if such provisions are not utilised for liabilities within six months of the disposal, then these
provisions will be used for prepayment in accordance with this Clause). 

17

 

8.4   Voluntary prepayment  

	(a)
	The
Company may, by giving not less than 10 Business Days' prior notice to the Facility Agent, prepay any Loan made to it at any time in whole or in part.

	(b)
	A
prepayment of part of a Loan must be in a minimum amount of euro10,000,000. 

8.5   Automatic cancellation  

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

8.6   Voluntary cancellation  

	(a)
	The
Company may, by giving not less than 10 Business Days' prior notice to the Facility Agent, cancel the unutilised amount of the Total Commitments in whole or in part.

	(b)
	Partial
cancellation of the Total Commitments must be in a minimum amount of euro10,000,000.

	(c)
	Any
cancellation in part will be applied against the Commitment of each Lender pro rata. 

8.7   Involuntary prepayment and cancellation  

	(a)
	If
the Company is, or will be, required to pay to a Lender a Tax Payment or an Increased Cost, the Company may, while the requirement continues, give notice to the Facility Agent
requesting prepayment and cancellation in respect of that Lender.

	(b)
	After
notification under paragraph (a) above:

	(i)
	the
Company shall repay or prepay that Lender's share in each Loan made to it on the date specified in paragraph (c) below; and

	(ii)
	the
Commitment of that Lender will be immediately cancelled.

	(c)
	The
date for repayment or prepayment of a Lender's share in a Loan will be the last day of the current Term for that Loan or, if earlier, the date specified by the Company in its
notification. 

8.8   Partial prepayment of Term Loans  

	(a)
	No
amount of a Term Loan prepaid under this Agreement may subsequently be re-borrowed.

	(b)
	Any
partial prepayment of a Term Loan will be applied against any remaining Repayment Instalments in inverse order of maturity. 

8.9   Re-borrowing  

Any
voluntary prepayment of a Revolving Loan may be re-borrowed on the terms of this Agreement. Any mandatory or involuntary prepayment of a Revolving Loan may not be
re-borrowed. 

18

   8.10 Miscellaneous provisions  

	(a)
	Any
notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify the relevant date(s) and the affected Loans and Commitments. The Facility Agent must
notify the Lenders promptly of receipt of any such notice.

	(b)
	All
prepayments under this Agreement must be made with accrued interest on the amount prepaid. No premium or penalty is payable in respect of any prepayment or cancellation except for
Break Costs.

	(c)
	The
Majority Lenders may agree a shorter notice period for a voluntary prepayment or a voluntary cancellation.

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

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

9.     INTEREST  

9.1   Calculation of interest  

The
rate of interest on each Loan for each Term is the percentage rate per annum equal to the aggregate of the applicable: 

	(a)
	Margin;

	(b)
	IBOR;
and

	(c)
	Mandatory
Cost. 

9.2   Payment of interest  

Except
where it is provided to the contrary in this Agreement, the Company must pay accrued interest on each Loan made to it on the last day of each Term and also, if the Term is longer than six
months, on the dates falling at six monthly intervals after the first day of that Term. 

9.3   Interest on overdue amounts  

	(a)
	If
an Obligor fails to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Facility Agent pay interest on the overdue amount from its due
date up to the date of actual payment, both before, on and after judgment.

	(b)
	Interest
on an overdue amount is payable at a rate determined by the Facility Agent to be one per cent. per annum above the rate which would have been payable if the overdue amount
had, during the period of non-payment, constituted a Loan in the currency of the overdue amount. For this purpose, the Facility Agent may (acting reasonably):

	(i)
	select
successive Terms of any duration of up to three months; and

	(ii)
	determine
the appropriate Rate Fixing Day for that Term.

	(c)
	Notwithstanding
paragraph (b) above, if the overdue amount is a principal amount of a Loan and becomes due and payable prior to the last day of its current Term, then:

	(i)
	the
first Term for that overdue amount will be the unexpired portion of that Term; and 

19

 

	(ii)
	the
rate of interest on the overdue amount for that first Term will be one per cent. per annum above the rate then payable on that Loan. 

After
the expiry of the first Term for that overdue amount, the rate on the overdue amount will be calculated in accordance with paragraph (b) above. 

	(d)
	Interest
(if unpaid) on an overdue amount will be compounded with that overdue amount at the end of each of its Terms but will remain immediately due and payable. 

9.4   Initial Margin  

Notwithstanding
the provisions of Clause 9.5 (Margin Adjustments), the Margin will be 0.90 per cent. per annum for the period from the Effective Date up to and including the first Margin Reset
Date (as defined in Clause 9.5 (Margin Adjustments)) to occur. 

9.5   Margin Adjustments  

	(a)
	In
this Subclause: 

Margin Period means the period on and from one Margin Reset Date to, but excluding, the next Margin Reset Date to occur. 

Margin Reset Date means the third Business Day after receipt by the Facility Agent of any Compliance Certificate. 

	(b)
	Prior
to each Margin Reset Date, the Facility Agent will determine the relevant Margin which will apply to all Terms commencing during the Margin Period commencing on that Margin
Reset Date.

	(c)
	On
and from the receipt by the Facility Agent of the Compliance Certificate with respect to each Measurement Period and subject to paragraph (d) below, the applicable Margin
will be calculated by reference to the table below and the information set out in the relevant Compliance Certificate: 

	Ratio of Adjusted Net Debt to Adjusted Equity
 
	 	Margin

(per cent. per annum)

	Greater than 1.05:1.00	 	2.00
	Greater than 0.85:1.00 but equal to or less than 1.05:1.00	 	1.75
	Greater than 0.60:1.00 but equal to or less than 0.85:1.00	 	1.25
	Less than or equal to 0.60:1.00	 	0.90

	(d)
	During
any Grace Period, the applicable Margin as set out in paragraph (c) above will be increased by 0.25 per cent. per annum for the duration of that Grace Period. 

9.6   Notification of rates of interest  

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

10.   TERMS  

10.1 Selection—Term Loans  

	(a)
	Each
Term Loan has successive Terms.

	(b)
	The
Company must select the first Term for a Term Loan in the relevant Request and each subsequent Term in an irrevocable notice received by the Facility Agent not later than 

20

 

11.00 a.m.
one Business Day before the Rate Fixing Day for that Term. Each Term for a Term Loan will start on its Utilisation Date or on the expiry of its preceding Term. 

	(c)
	If
the Company fails to select a Term for an outstanding Term Loan under paragraph (b) above, that Term will, subject to the other provisions of this Clause, be three months.

	(d)
	Subject
to the following provisions of this Clause, each Term for a Loan will be one, two, three or six months or any other period agreed by the Company and the Facility Agent. 

10.2 Selection—Revolving Loans  

	(a)
	Each
Revolving Loan has one Term only.

	(b)
	The
Company must select the Term for a Revolving Loan in the relevant Request.

	(c)
	Subject
to the following provisions of this Clause, each Term for a Revolving Loan will be one, two, three or six months or any period agreed by the Company and the Facility Agent. 

10.3 Consolidation—Term Loans  

Unless
the Company otherwise requests, a Term for a Term Loan will end on the same day as the current Term for any other Term Loan drawn down under the same Facility and denominated in the same
currency as that Term Loan. On the last day of those Terms, those Term Loans will be consolidated and treated as one Term Loan. 

10.4 No overrunning the Final Maturity Date  

If
a Term would otherwise overrun the Final Maturity Date for that Facility, it will be shortened so that it ends on the Final Maturity Date for that Facility. 

10.5 Other adjustments  

The
Facility Agent and the Company may enter into such other arrangements as they may agree for the adjustment of Terms and the consolidation and/or splitting of Loans. 

10.6 Notification  

The
Facility Agent must notify the Company and the Lenders of the duration of each Term promptly after ascertaining its duration. 

11.   MARKET DISRUPTION  

11.1 Failure of a Reference Bank to supply a rate  

If
IBOR is to be calculated by reference to the Reference Banks but a Reference Bank does not supply a rate by 12.00 noon (local time) on a Rate Fixing Day, the applicable IBOR will, subject as
provided below, be calculated on the basis of the rates of the remaining Reference Banks. 

11.2 Market disruption  

	(a)
	In
this Clause, each of the following events is a market disruption event:

	(i)
	IBOR
is to be calculated by reference to the Reference Banks but no, or only one, Reference Bank supplies a rate by 12.00 noon (local time) on the Rate Fixing Day; or 

21

 

	(ii)
	the
Facility Agent receives by close of business on the Rate Fixing Day notification from Lenders whose shares in the relevant Loan in aggregate exceed 30 per cent. of
that Loan that the cost to them of obtaining matching deposits in the relevant interbank market is in excess of IBOR for the relevant Term.

	(b)
	The
Facility Agent must promptly notify the Company and the Lenders of a market disruption event.

	(c)
	After
notification under paragraph (b) above, the rate of interest on each Lender's share in the affected Loan for the relevant Term will be the aggregate of the applicable:

	(i)
	Margin;

	(ii)
	rate
notified to the Facility Agent by that Lender as soon as practicable, and in any event before interest is due to be paid in respect of that Term, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its share in that Loan from whatever source it may reasonably select; and

	(iii)
	Mandatory
Cost. 

11.3 Alternative basis of interest or funding  

	(a)
	If
a market disruption event occurs and the Facility Agent or the Company so requires, the Company and the Facility Agent must enter into negotiations for a period of not more than
30 days with a view to agreeing an alternative basis for determining the rate of interest and/or funding for the affected Loan and any future Loan.

	(b)
	Any
alternative basis agreed will be, with the prior consent of all the Lenders, binding on all the Parties. 

12.   TAXES  

12.1 General  

In
this Clause 

Tax Credit means a credit against any Tax or any relief or remission for Tax (or its repayment). 

Qualifying Lender means a Lender which is: 

	(a)
	a
Swedish Lender; or

	(b)
	a
Treaty Lender. 

Swedish Lender means a Lender which is able under the domestic law of Sweden to receive source interest of Sweden free of any deduction or withholding
for or on account of tax (if any) imposed by Sweden. 

Treaty Lender means a Lender which is: 

	(a)
	resident
(as defined in the appropriate double taxation agreement) in a country with which Sweden has a double taxation agreement giving residents of that country exemption from
Swedish taxation on interest; and

	(b)
	does
not carry on a business in Sweden through a permanent establishment with which the payment is effectively connected. 

22

 

12.2 Tax gross-up  

	(a)
	Each
Obligor must make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by law.

	(b)
	If
an Obligor or a Lender is aware that an Obligor must make a Tax Deduction (or that there is a change in the rate or the basis of a Tax Deduction), it must promptly notify the
Facility Agent. The Facility Agent must then promptly notify the affected Parties.

	(c)
	Except
as provided below, if a Tax Deduction is required by law to be made by an Obligor or the Facility Agent, the amount of the payment due from the Obligor will be increased to an
amount which (after making the Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

	(d)
	Except
as provided below, an Obligor is not required to make an increased payment under paragraph (c) above for a Tax Deduction in respect of tax imposed by Sweden on a Lender
that is not, or has ceased to be, a Qualifying Lender in excess of the amount that the Obligor would have had to pay had the Lender been, or not ceased to be, a Qualifying Lender.

	(e)
	Paragraph (d)
above will not apply if the Lender has ceased to be a Qualifying Lender by reason 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 double taxation agreement or any published practice or concession of any relevant taxing authority.

	(f)
	An
Obligor is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect of tax imposed by Sweden if the Obligor making the
payment is able to demonstrate that the Tax Deduction would not have been required if the Lender had complied with its obligations under paragraph (i) below.

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

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

	(i)
	A
Lender must co-operate with each Obligor by using its reasonable endeavours to complete any procedural formalities necessary for that Obligor to obtain authorisation to
make that payment without a Tax Deduction. 

12.3 Tax indemnity  

	(a)
	Except
as provided below, the Company must indemnify a Finance Party against any loss or liability which that Finance Party (in its absolute discretion but acting in good faith)
determines will be or has been suffered (directly or indirectly) by that Finance Party for or on account of Tax in relation to a payment received or receivable (or any payment deemed to be received or
receivable) under a Finance Document.

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

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

23

 

	(ii)
	that
Finance Party's Facility Office is located in respect of amounts received or receivable in that jurisdiction, 

if
that Tax is imposed on or calculated by reference to the net income received or receivable by that Finance Party. However, any payment deemed to be received or receivable, including any amount
treated as income but not actually received by the Finance Party, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose. 

	(c)
	Paragraph (a)
above shall not apply to the extent a loss, liability or cost:

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

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

	(d)
	A
Finance Party making, or intending to make, a claim under paragraph (a) above must promptly notify the Company of the event which will give, or has given, rise to the claim. 

12.4 Tax Credit  

If
an Obligor makes a Tax Payment and the relevant Finance Party (in its absolute discretion but acting in good faith) determines that: 

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

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

the
Finance Party must pay an amount to the Obligor which that Finance Party determines (in its absolute discretion but acting in good faith) will leave it (after that payment) in the same
after-tax position as it would have been if the Tax Payment had not been required to be made by the Obligor. 

12.5 Stamp taxes  

The
Company must pay and indemnify each Finance Party against any stamp duty, registration or other similar Tax payable in connection with the entry into, performance or enforcement of any Finance
Document, except for any such Tax payable in connection with the entry into a Transfer Certificate. 

12.6 Value added taxes  

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

	(b)
	The
obligation of any Obligor under paragraph (a) above will be reduced to the extent that the Finance Party determines (acting reasonably) that it is entitled to repayment or
a credit in respect of the relevant Tax. 

24

 

13.   INCREASED COSTS  

13.1 Increased Costs  

Except
as provided below in this Clause, the Company must pay to a Finance Party the amount of any Increased Cost incurred by that Finance Party or any of its Affiliates as a result of: 

	(a)
	the
introduction of, or any change in, or any change in the interpretation, administration or application of, any law or regulation; or

	(b)
	compliance
with any law or regulation, 

made
after the date of this Agreement. 

13.2 Exceptions  

The
Company need not make any payment for an Increased Cost to the extent that the Increased Cost is: 

	(a)
	compensated
for under another Clause or would have been but for an exception to that Clause;

	(b)
	a
tax on the overall net income of a Finance Party or any of its Affiliates; or

	(c)
	attributable
to a Finance Party or its Affiliate negligently or wilfully failing to comply with any law or regulation. 

13.3 Claims  

A
Finance Party intending to make a claim for an Increased Cost must notify the Company promptly of the circumstances giving rise to, and the amount of, the claim. 

14.   MITIGATION  

14.1 Mitigation  

	(a)
	Each
Finance Party must, in consultation in good faith with the Company, take all reasonable steps to mitigate any circumstances which arise and which result or would result in:

	(i)
	any
Tax Payment or Increased Cost being payable to that Finance Party;

	(ii)
	that
Finance Party being able to exercise any right of prepayment and/or cancellation under this Agreement by reason of any illegality; or

	(iii)
	that
Finance Party incurring any cost of complying with the minimum reserve requirements of the European Central Bank, 

including
transferring its rights and obligations under the Finance Documents to an Affiliate or changing its Facility Office. 

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

	(c)
	The
Company must indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of any step taken by it under this Subclause.

	(d)
	A
Finance Party is not obliged to take any step under this Subclause if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it. 

25

 

	(e)
	Each
Lender agrees that it will not take any steps to mitigate any circumstances referred to in this Clause if, following consultation with the Company, the Company objects to that
Lender taking such steps. 

14.2 Conduct of business by a Finance Party  

No
term of this Agreement will: 

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

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

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

15.   PAYMENTS  

15.1 Place  

Unless
a Finance Document specifies that payments under it are to be made in another manner, all payments by a Party (other than the Facility Agent) under the Finance Documents must be made to the
Facility Agent to its account at such office or bank: 

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

	(b)
	in
the case of euro, in the principal financial centre of a Participating Member State or London or Stockholm, 

as
it may notify to that Party for this purpose by not less than five Business Days' prior notice. 

15.2 Funds  

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

15.3 Distribution  

	(a)
	Each
payment received by the Facility Agent under the Finance Documents for another Party must, except as provided below, be made available by the Facility Agent to that Party by
payment (as soon as practicable after receipt) to its account with such office or bank:

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

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

as
it may notify to the Facility Agent for this purpose by not less than five Business Days' prior notice. 

	(b)
	The
Facility Agent may apply any amount received by it for an Obligor in or towards payment (as soon as practicable after receipt) of any amount due from that Obligor under the
Finance Documents or in or towards the purchase of any amount of any currency to be so applied. 

26

 

	(c)
	Where
a sum is paid to the Facility Agent under this Agreement for another Party, the Facility Agent is not obliged to pay that sum to that Party until it has established that it has
actually received it. However, the Facility Agent may assume that the sum has been paid to it, and, in reliance on that assumption, make available to that Party a corresponding amount. If it
transpires that the sum has not been received by the Facility Agent, that Party must immediately on demand by the Facility Agent refund any corresponding amount made available to it together with
interest on that amount from the date of payment to the date of receipt by the Facility Agent at a rate calculated by the Facility Agent to reflect its cost of funds. 

15.4 Currency  

	(a)
	Unless
a Finance Document specifies that payments under it are to be made in a different manner, the currency of each amount payable under the Finance Documents is determined under
this Clause.

	(b)
	Amounts
payable in respect of costs and expenses are payable in the currency in which they are incurred.

	(c)
	Each
other amount payable under the Finance Documents is payable in euros. 

15.5 No set-off or counterclaim  

All
payments made by an Obligor under the Finance Documents must be made without set-off or counterclaim. 

15.6 Business Days  

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

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

15.7 Partial payments  

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

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

	(ii)
	secondly, in or towards payment pro rata of any accrued interest or fee due but unpaid under this Agreement;

	(iii)
	thirdly, in or towards payment pro rata of any principal amount 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. 

27

 

	(b)
	The
Facility Agent must, if so directed by all the Lenders, vary the order set out in sub-paragraphs (a)(ii) to (iv) above.

	(c)
	This
Subclause will override any appropriation made by an Obligor. 

15.8 Timing of payments  

If
a Finance Document does not provide for when a particular payment is due, that payment will be due within three Business Days of demand by the relevant Finance Party. 

16.   GUARANTEE AND INDEMNITY  

16.1 Guarantee and indemnity  

The
Parent irrevocably and unconditionally (except as provided in this Clause): 

	(a)
	guarantees
to each Finance Party punctual performance by the Company of all its payment obligations under the Finance Documents;

	(b)
	undertakes
with each Finance Party that, whenever the Company does not pay any amount when due under any Finance Document, the Parent must immediately on demand by the Facility Agent
pay that amount as if it were the principal obligor; and

	(c)
	indemnifies
each Finance Party immediately on demand against any loss or liability suffered by that Finance Party if any payment obligation guaranteed by it is or becomes
unenforceable, invalid or illegal; the amount of the loss or liability under this indemnity will be equal to the amount the Finance Party would otherwise have been entitled to recover. 

16.2 Continuing guarantee  

This
guarantee is a continuing guarantee and will extend to the ultimate balance of all sums payable by the Company under the Finance Documents regardless of any intermediate payment or discharge in
whole or in part. 

16.3 Reinstatement  

	(a)
	If
any discharge (whether in respect of the obligations of an Obligor or any security for those obligations or otherwise) or arrangement is made in whole or in part on the faith of
any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation or otherwise without limitation, the liability of the Parent under this Clause will continue
as if the discharge or arrangement had not occurred.

	(b)
	Each
Finance Party may concede or compromise any claim that any payment, security or other disposition is liable to avoidance or restoration. 

28

   16.4 Waiver of defences  

The
obligations of the Parent under this Clause will not be affected by any act, omission or thing which, but for this provision, would reduce, release or prejudice any of its obligations under this
Clause (whether or not known to it or any Finance Party). This includes: 

	(a)
	any
time or waiver granted to, or composition with, any person;

	(b)
	any
release of any person under the terms of any composition or arrangement;

	(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 person;

	(d)
	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;

	(e)
	any
incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any person;

	(f)
	any
amendment (however fundamental) of a Finance Document or any other document or security; or

	(g)
	any
unenforceability, illegality, invalidity or non-provability of any obligation of any person under any Finance Document or any other document or security. 

16.5 Immediate recourse  

	(a)
	Subject
to paragraph (b) below, the Parent 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 right or security or claim payment from any person before claiming from the Parent under this Clause.

	(b)
	No
demand shall be made on the Parent under this Clause unless and until a Finance Party has first notified the Company that the payment owing by the Company, with respect to which
the demand is to be made on the Parent, is due and payable. The demand on the Parent may be made immediately following the giving of such notification. 

16.6 Appropriations  

Until
all amounts which may be or become payable by the Obligors under the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may without
affecting the liability of the Parent under this Clause: 

	(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

	(b)
	apply
and enforce them in such manner and order as it sees fit (whether against those amounts or otherwise); and

	(c)
	hold
in an interest-bearing suspense account any moneys received from the Parent or on account of the Parent's liability under this Clause. 

29

 

16.7 Non-competition  

Unless:

	(a)
	all
amounts which may be or become payable by the Obligors under the Finance Documents have been irrevocably paid in full; or

	(b)
	the
Facility Agent otherwise directs, 

the
Parent will not, after a claim has been made or by virtue of any payment or performance by it under this Clause: 

	(i)
	be
subrogated to any rights, security or moneys held, received or receivable by any Finance Party (or any trustee or agent on its behalf);

	(ii)
	be
entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of the Parent's liability under this Clause;

	(iii)
	claim,
rank, prove or vote as a creditor of the Company or its estate in competition with any Finance Party (or any trustee or agent on its behalf); or

	(iv)
	receive,
claim or have the benefit of any payment, distribution or security from or on account of the Company, or exercise any right of set-off as against
the Company. 

The
Parent must hold in trust for and immediately pay or transfer to the Facility Agent for the Finance Parties any payment or distribution or benefit of security received by it contrary to this
Clause or in accordance with any directions given by the Facility Agent under this Clause. 

16.8 Additional security  

This
guarantee is in addition to and is not in any way prejudiced by any other security now or subsequently held by any Finance Party. 

17.   REPRESENTATIONS  

17.1 Representations  

The
representations set out in this Clause are made by each Obligor or (if it so states) the relevant Obligor in each case, with respect to itself and its Subsidiaries to each Finance Party. 

17.2 Status  

	(a)
	It
is a limited liability company, duly incorporated and validly existing under the laws of the Kingdom of Sweden.

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

17.3 Powers and authority  

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

30

 

17.4 Legal validity  

Subject
to any general principles of law limiting its obligations and referred to in any legal opinion required under this Agreement, each Finance Document to which it is a party is its legally
binding, valid and enforceable obligation. 

17.5 Non-conflict  

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

	(a)
	any
law or regulation applicable to it;

	(b)
	its
or any of its Subsidiaries' constitutional documents; or

	(c)
	any
document which is binding upon it or any of its Subsidiaries or any of its or its Subsidiaries' assets, 

except,
in all cases above, where such conflict would not reasonably be expected to have a Material Adverse Effect and provided that, in the case of paragraph (a) above, would not result in any
liability for a Finance Party. 

17.6 No default  

	(a)
	No
Event of Default is outstanding or will result from the execution of, or the performance of any transaction contemplated by, any Finance Document; and

	(b)
	no
other event is outstanding which constitutes a default under any document which is binding on it or any of its Subsidiaries or any of its or its Subsidiaries' assets to an extent
or in a manner which is reasonably likely to have a Material Adverse Effect. 

17.7 Authorisations  

All
authorisations required by it in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents have been (or will have
been by the date of the delivery of the first Request by the Company) obtained or effected (as appropriate) and are in full force and effect. 

17.8 Financial statements  

Its
financial statements most recently delivered to the Facility Agent (which at the date of this Agreement, are the Original Financial Statements): 

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

	(b)
	give
a true and fair view of its financial condition (consolidated, if applicable) as at the date to which they were drawn up, subject to the limitations inherent in the preparation
of unaudited accounts, 

except,
in each case, as disclosed to the contrary in those financial statements. 

31

 

17.9 No material adverse change  

There
has been no material adverse change in the consolidated financial condition of (in the case of the Parent) the Parent Group or (in the case of the Company) the Company Group since the date to
which the Original Financial Statements were drawn up. 

17.10 Litigation  

No
litigation, arbitration or administrative proceedings are current or, to its knowledge, pending or threatened, which, if adversely determined, are reasonably likely to have a Material Adverse
Effect. 

17.11 Pari passu ranking  

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

17.12 Taxes on payments  

All
amounts payable by it under the Finance Documents may be made without any Tax Deduction in the Kingdom of Sweden. 

17.13 Stamp duties  

No
stamp or registration duty or similar Tax or charge is payable in the Kingdom of Sweden in respect of any Finance Document. 

17.14 Immunity  

	(a)
	The
execution by it of each Finance Document constitutes, and the exercise by it of its rights and performance of its obligations under each Finance Document will constitute, private
and commercial acts performed for private and commercial purposes; and

	(b)
	it
will not be entitled to claim immunity from suit, execution, attachment or other legal process in any proceedings taken in its jurisdiction of incorporation in relation to any
Finance Document. 

17.15 No adverse consequences  

	(a)
	It
is not necessary under the laws of its jurisdiction of incorporation:

	(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 jurisdiction of incorporation; and 

	(b)
	no
Finance Party is or will be deemed to be resident, domiciled or carrying on business in its jurisdiction of incorporation by reason only of the execution, performance and/or
enforcement of any Finance Document. 

32

 

17.16 Jurisdiction/governing law  

	(a)
	Its:

	(i)
	irrevocable
submission under this Agreement to the jurisdiction of the courts of England;

	(ii)
	agreement
that this Agreement is governed by English law; and

	(iii)
	agreement
not to claim any immunity to which it or its assets may be entitled, 

are
legal, valid and binding under the laws of its jurisdiction of incorporation; and 

	(b)
	any
judgment obtained in England will be recognised and be enforceable by the courts of its jurisdiction of incorporation. 

17.17 Ownership of the Company  

The
Company is a wholly-owned Subsidiary of the Parent. 

17.18 High Yield Bond  

The
Loans constitute Senior Indebtedness for the purposes of the HYB Indenture. 

17.19 Times for making representations  

	(a)
	The
representations set out in this Clause are made by each Obligor on the Signing Date.

	(b)
	Unless
a representation is expressed to be given at a specific date, each representation (other than those representations set out in Clauses 17.10 (Litigation), 17.12 (Taxes on
payments) and 17.13 (Stamp duties)) is deemed to be repeated by each Obligor on the date of each Request and on the first day of each Term.

	(c)
	When
a representation is repeated, it is applied to the circumstances existing at the time of repetition. 

18.   INFORMATION COVENANTS  

18.1 Financial statements  

	(a)
	Each
Obligor must supply to the Facility Agent in sufficient copies for all the Lenders:

	(i)
	its
audited consolidated financial statements for each of its financial years;

	(ii)
	its
interim consolidated financial statements for the first half-year of each of its financial years; and

	(iii)
	its
interim consolidated financial statements for the first, third and final quarter of its financial years.

	(b)
	All
financial statements must be supplied as soon as they are available and:

	(i)
	in
the case of audited consolidated financial statements, within 120 days; and

	(ii)
	in
the case of interim consolidated financial statements, within 60 days, 

of
the end of the relevant financial period. 

33

 

18.2 Form of financial statements  

	(a)
	Each
set of financial statements supplied under this Agreement shall be certified by a director of the relevant Obligor as fairly representing its financial condition as at the date
as at which those financial statements were drawn up.

	(b)
	The
Company shall procure that each set of financial statements of an Obligor supplied under this Agreement is prepared using GAAP, accounting practices and financial reference
periods consistent with those applied in the preparation of the Original Financial Statements for that Obligor unless, in relation to any set of financial statements, it notifies the Facility Agent
that there has been a change in GAAP, the accounting practices or reference periods and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Facility Agent:

	(i)
	a
description of the change necessary for those financial statements to reflect the GAAP, accounting practices and reference periods upon which that Obligor's Original
Financial Statements were prepared; and

	(ii)
	sufficient
information, in form and substance as may be reasonably required by the Facility Agent to enable the Lenders to determine whether Clause 19 (Financial
covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and that Obligor's Original Financial Statements. 

Any
reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial
Statements were prepared. 

18.3 Compliance Certificate  

Each
Obligor shall ensure that each set of its financial statements delivered by it pursuant to Clause 18.1 (Financial statements) is accompanied by a Compliance Certificate signed by two
authorised signatories. 

18.4 Information—miscellaneous  

	(a)
	If,
on any testing date, there is a breach of the ratio of Operating Cashflow to Gross Interest referred to in Clause 19.4 (Interest cover), the Company must supply to the
Facility Agent with each set of its financial statements delivered in accordance with Clause 18.1(a) (Financial statements) financial projections for the following five years.

	(b)
	Each
Obligor must supply to the Facility Agent, in sufficient copies for all the Lenders if the Facility Agent so requests:

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

	(ii)
	promptly
upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened by a public or governmental
body or entity or by way of a formal notice (by letter before action, a lawyer's letter or otherwise) or pending and which might, if adversely determined, have a Material Adverse Effect;

	(iii)
	promptly
on request, a list of the then current subsidiaries; and 

34

 

	(iv)
	promptly
on request, such further information regarding the financial condition and operations of it and its Subsidiaries as any Finance Party through the Facility
Agent may reasonably request.

	(c)
	The
Company will:

	(i)
	notify
the Facility Agent promptly upon it establishing a hedging strategy;

	(ii)
	promptly
on request at any time after such notification referred to in (i) (above) has been made, supply to the Facility Agent, in sufficient copies for all the
Lenders if the Facility Agent so requests, a copy of the hedging strategy; and

	(iii)
	supply
the Facility Agent with details of any material changes to the hedging strategy. 

18.5 Notification of Default  

	(a)
	Unless
the Facility Agent has already been so notified by another Obligor, each Obligor must notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it)
promptly upon becoming aware of its occurrence.

	(b)
	Promptly
on request by the Facility Agent, each Obligor must supply to the Facility Agent a certificate, signed by two of its authorised signatories on its behalf, certifying that no
Default is outstanding or, if a Default is outstanding, specifying the Default and the steps, if any, being taken to remedy it. 

18.6 Year end  

No
Obligor may change its financial year end. 

18.7 Use of websites  

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

	(i)
	the
Facility Agent and the Lender agree;

	(ii)
	the
relevant Obligor and the Facility Agent designate an electronic website for this purpose;

	(iii)
	the
relevant Obligor notifies the Facility Agent of the address of and password for the website; and

	(iv)
	the
information posted is in a format agreed between the relevant Obligor and the Facility Agent. 

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

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

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

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

	(c)
	Each
Obligor must promptly upon becoming aware of its occurrence, notify the Facility Agent if:

	(i)
	its
website cannot be accessed; 

35

 

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

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

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

If
the circumstances in paragraphs (i) or (ii) above occur, the relevant Obligor must supply any information required under this Agreement in paper form. 

19.   FINANCIAL COVENANTS  

19.1 Definitions  

In
this Clause: 

Adjusted Equity means at any time the aggregate of equity based on the latest published audited consolidated balance sheet of the Company
(the latest balance sheet) but adjusted by including any amount attributable to minority interests and Shareholder Loans. 

Adjusted Net Debt means at any time Interest Bearing Liabilities less Consolidated Cash and Cash Equivalents and less (to the extent included in the
Interest Bearing Liabilities) Shareholder Loans. 

Consolidated Cash and Cash Equivalents means, at any time: 

	(a)
	cash
in hand or on deposit with any acceptable bank;

	(b)
	certificates
of deposit, maturing within one year after the relevant date of calculation, issued by an acceptable bank;

	(c)
	any
investment in marketable obligations issued or guaranteed by the government of an agreed country or by an instrumentality or agency of the government of an agreed country;

	(d)
	open
market commercial paper:

	(i)
	for
which a recognised trading market exists;

	(ii)
	issued
in an agreed country;

	(iii)
	which
matures within one year after the relevant date of calculation; and

	(iv)
	which
has a credit rating of either A-1 by S&P or Fitch or P-1 by Moody's, or, if no rating is available in respect of the commercial paper, the
issuer of which has, in respect of its long-term debt obligations, an equivalent rating;

	(e)
	Sterling
bills of exchange eligible for rediscount at the Bank of England and accepted by an acceptable bank (or any dematerialised equivalent); or

	(f)
	any
other instrument, security or investment approved by the Majority Lenders, 

in
each case, to which any member of the Company Group is beneficially entitled at that time and which is capable of being applied against Interest Bearing Liabilities. For this purpose an  acceptable bank
is a commercial bank or trust company which has a rating of A or higher by S&P or Fitch or A2 or higher by Moody's or a comparable
rating from a nationally recognised credit rating agency for its long-term debt obligations or has been approved by the Majority Lenders; and 

an
agreed country is U.S., U.K. or Sweden. 

36

 

Consolidated EBITDA means the consolidated net pre-taxation profits of the Company Group for a Measurement Period as adjusted by: 

	(a)
	adding
back Consolidated Interest Payable;

	(b)
	taking
no account of any extraordinary item;

	(c)
	excluding
any amount attributable to minority interests;

	(d)
	adding
back depreciation and amortisation; and

	(e)
	taking
no account of any revaluation of an asset or any loss or gain over book value arising on the disposal of an asset (otherwise than in the ordinary course of trading) by a member
of the Company Group during that Measurement Period. 

Consolidated Interest Payable means all interest and other financing charges (whether, in each case, paid, payable or capitalised other than capitalised
interest on the ISO-cracker Investment and exchange rate movements recorded under financial costs), incurred by the Company Group during a Measurement Period. 

Consolidated Interest Receivable means all interest and other financing charges received or receivable by the Company Group during a Measurement Period. 

Gross Interest means Consolidated Interest Payable less Consolidated Interest Receivable during the relevant Measurement Period. 

Interest Bearing Liabilities means at any time the consolidated amount of the interest bearing liabilities of the Company Group as determined in
accordance with GAAP as used in preparing the Original Financial Statements (including pension liabilities (Sw: avsatt till pensioner) and financial
leases). 

Measurement Period means each period of 12 months ending as a Quarter Date. 

Operating Cashflow means Consolidated EBITDA adjusted by taking into account any exchange rate movements. 

Quarter Date means, as appropriate, 31st March, 30th June, 30th September and 31st December. 

19.2 Interpretation  

	(a)
	Except
as provided to the contrary in this Agreement, an accounting term used in this Clause is to be construed in accordance with the principles and practices applied in connection
with the Original Financial Statements.

	(b)
	Any
amount in a currency other than euros is to be taken into account at its euros equivalent calculated on the basis of:

	(i)
	the
Facility Agent's spot rate of exchange for the purchase of the relevant currency in the London foreign exchange market with euros at or about 11.00 a.m. on
the day the relevant amount falls to be calculated; or

	(ii)
	if
the amount is to be calculated on the last day of a financial period of the Company, the relevant rates of exchange used by the Company in, or in connection with,
its financial statements for that period.

	(c)
	No
item must be credited or deducted more than once in any calculation under this Clause. 

37

 

19.3 Gearing  

	(a)
	Subject
to paragraph (b) below, the Company must ensure that the ratio of Adjusted Net Debt to Adjusted Equity (the Ratio) does
not at any time exceed 1.15:1.00.

	(b)
	Notwithstanding
paragraph (a) above, the Ratio may be greater than 1.15:1.00 at any time (but so long as it is not greater than 1.25:1.00 at any time) provided that, within
three months of the Ratio first exceeding 1.15:1.00, the Parent makes a capital injection in the form of an equity contribution in cash to the Company of a minimum of euro25,000,000 so that,
immediately after this capital injection is made, the Ratio is not greater than 1.05:1.00 (such period of three months being a Grace Period).

	(c)
	Upon
the Ratio first exceeding 1.15:1.00, the Company shall promptly notify the Facility Agent of this fact.

	(d)
	After
the Parent has made a capital injection under paragraph (b) above, the Company shall prove to the satisfaction of the Facility Agent that:

	(i)
	this
capital injection has been made; and

	(ii)
	the
Ratio has changed to be equal to or lower than 1.05:1.00. 

19.4 Interest cover  

The
Company must ensure that the ratio of Operating Cashflow to Gross Interest is not, at the end of a Measurement Period during a period set out in the table below, less than the value set opposite
that period: 

	Date
	 	Ratio

	from Signing Date to 31st December, 2005 (inclusive)	 	3.50:1.00
	from 1st January, 2006 to 31st December, 2006 (inclusive)	 	4.00:1.00
	Thereafter	 	5.00:1.00

38

   20.   GENERAL COVENANTS  

 20.1 General  

Each
Obligor agrees to be bound by the covenants set out in this Clause relating to it and, where the covenant is expressed to apply to each member of the Parent Group, each Obligor must ensure that
each of its Subsidiaries performs that covenant. 

20.2 Authorisations  

Each
Obligor must promptly obtain, maintain and comply with the terms of any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or
enforceability of, any Finance Document. 

20.3 Compliance with laws  

Each
member of the Parent Group must comply in all respects with all laws to which it is subject where failure to do so would reasonably be likely to have a Material Adverse Effect. 

20.4 Pari passu ranking  

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

20.5 Negative pledge  

	(a)
	Except
as provided below, no member of the Parent Group may create or allow to exist any Security Interest on any of its assets.

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

	(i)
	any
Security Interest created or permitted to exist with the prior consent of the Facility Agent;

	(ii)
	any
Security Interest constituted by the indenture dated 10th April, 2001 entered into by the Parent in connection with the Senior Secured Notes or over the shares in
the Company under the Share Pledge Agreement or the intercompany indebtedness of the Company to the Parent under the Security Assignment Agreement, in each case in favour of the holders of the Senior
Secured Notes, and as required by (and referred to in) that indenture;

	(iii)
	any
Security Interest comprising a netting or set-off arrangement entered into by a member of the Parent Group in the ordinary course of its banking
arrangements for the purpose of netting debit and credit balances;

	(iv)
	any
Security Interest arising by operation of law and in the ordinary course of business and securing amounts not more than 90 days overdue;

	(v)
	any
Security Interest on an asset, or an asset of any person, acquired by a member of the Parent Group after the date of this Agreement but only for the period of six
months from the date of acquisition and to the extent that the principal amount secured by that Security Interest has not been incurred or increased in contemplation of, or since, the acquisition;

	(vi)
	any
Security Interest over assets acquired after the date of this Agreement as security for or in respect of Financial Indebtedness incurred solely to finance all or
part of the 

39

 

purchase
price of those assets, provided that the Security Interest is created at the time of the acquisition and the maximum amount of the Financial Indebtedness secured by that Security Interest
does not exceed the purchase price and that such Security Interests are discharged within six months from the date of acquisition; 

	(vii)
	any
Security Interest over amounts which a member of the Parent Group is required under the rules of any relevant financial exchange to place as collateral with a
financial exchange in relation to derivative instruments entered into in the ordinary course of trade;

	(viii)
	any
Security Interest (the new Security Interest) created in substitution for any of the Security Interests referred
to in paragraphs (i) to (vii) above (including in favour of any refinancier of the indebtedness secured by any of those Security Interests), provided that the new Security Interest
subsists over the same asset(s) as had been secured by the Security Interest which it replaced, the principal, capital or nominal amount secured by the new Security Interest does not exceed the amount
permitted to be secured by the Security Interest which it replaced, and (in the case of new Security Interests created in substitution for Security Interests permitted under paragraphs (v) and
(vi) above) the new Security Interests are discharged within the original period of six months referred to in those paragraphs; and

	(ix)
	any
Security Interest securing indebtedness the amount of which (when aggregated with the amount of any other indebtedness which has the benefit of a Security Interest
not allowed under the preceding sub-paragraphs) does not exceed euro15,000,000 or its equivalent at any time (when aggregated with the value of transactions permitted in accordance with
paragraph (c) below).

	(c)
	No
member of the Parent Group may:

	(i)
	sell,
transfer or otherwise dispose of any of its assets on terms where it is or may be leased to or re-acquired or acquired by a member of the Parent Group
or any of its related entities; or

	(ii)
	sell,
transfer or otherwise dispose of any of its receivables on recourse terms, 

in
circumstances where the transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset, except where the value of such sale,
transfer or disposal does not exceed euro15,000,000 or its equivalent at any time (when aggregated with the amount of any indebtedness subject to a Security Interest referred to in
paragraph (b)(ix) above). 

20.6 Disposals  

	(a)
	Except
as provided below, no member of the Parent Group may, either in a single transaction or in a series of transactions and whether related or not, dispose of all or any part of
its assets.

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

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

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

	(iii)
	by
one member of the Company Group to another member of the Company Group on arm's length terms for fair value; 

40

 

	(iv)
	by
the Parent to the Company;

	(v)
	of
any asset from the Company Group to the Parent to the extent that such disposal does not constitute a lawful dividend in accordance with paragraph (vi) below,
the disposal of which asset to the Parent the Parent must procure is not restricted by the terms of the Senior Secured Notes;

	(vi)
	by
the Company Group to the Parent which constitutes a lawful dividend;

	(vii)
	constituted
by the Group Contribution;

	(viii)
	in
the event that the Company makes no Group Contribution, or makes a Group Contribution of an amount less than the Charges (as defined in Clause 20.15 (Group
Contribution) but excluding, for the purposes of this Clause, the Charges set out in Clause 20.15(b)(iv)), a disposal by the Company by way of a payment to the Parent out of the Company's
distributable profits in any year to enable the Parent to pay the Charges;

	(ix)
	where
the higher of the market value or consideration receivable (when aggregated with the higher of the market value or consideration for any other disposal not
allowed under the preceding sub-paragraphs) does not exceed euro10,000,000 or its equivalent in any financial year of the Company.

	(c)
	This
Clause 20.6 does not prevent the refinancing or redemption of the Senior Secured Notes (this term including for this purpose any Financial Indebtedness refinancing them,
and subsequent refinancings of any such refinancing Financial Indebtedness). 

20.7 Financial Indebtedness  

	(a)
	Except
as provided below, no member of the Company Group (other than the Company or Preem Finans AB) may incur any Financial Indebtedness.

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

	(i)
	any
Financial Indebtedness agreed to in advance by the Majority Lenders;

	(ii)
	any
Financial Indebtedness existing as at the date of the Amendment Agreement, provided that the amount of such Financial Indebtedness shall not be increased without
the prior consent of the Lenders;

	(iii)
	any
Financial Indebtedness owed by a member of the Company Group to another member of the Company Group;

	(iv)
	any
Financial Indebtedness incurred under a banking facility available to the Company Group as at the date of the Amendment Agreement, up to the aggregate amount
available for drawing under that facility as at that date; or

	(v)
	any
Financial Indebtedness incurred in refinancing, renewing or replacing any of the Financial Indebtedness referred to in paragraphs (i) to
(iv) (inclusive) above, up to the same aggregate principal amount as the Financial Indebtedness so refinanced, renewed or replaced. 

20.8 Change of business  

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

41

 

20.9 Mergers  

No
Obligor may, and each Obligor will procure that none of its Subsidiaries shall, enter into any amalgamation, demerger, merger or reconstruction otherwise than: 

	(a)
	in
respect of a member of the Parent Group other than an Obligor, under an intra-Group re-organisation on a solvent basis;

	(b)
	in
respect of a member of the Parent Group other than an Obligor, where the existing member of the Parent Group is the surviving entity;

	(c)
	in
respect of any member of the Parent Group other than an Obligor, where such amalgamation, demerger, merger or reconciliation would not reasonably be expected to have a Material
Adverse Effect; or

	(d)
	as
agreed in advance by the Lenders (acting reasonably). 

20.10 Acquisitions  

	(a)
	Except
as provided below, no member of the Parent Group may make any acquisition or investment.

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

	(i)
	acquisitions
or investments made in the ordinary course of trade;

	(ii)
	any
acquisition of a business which is complementary to the core business of the Company and its Subsidiaries;

	(iii)
	any
acquisition or investment by one member of the Company Group from or in another member of the Company Group on arm's length terms for fair value; or

	(iv)
	any
investment by any member of the Company Group permitted by Clauses 20.6(b)(v) or (vi) (Disposals). 

20.11 Environmental matters  

	(a)
	In
this Subclause (and as used in Clause 25.2 (Other indemnities)): 

Environmental Approval means any authorisation required by an Environmental Law. 

Environmental Claim means any claim by any person in connection with: 

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

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

	(iii)
	any
other environmental contamination. 

Environmental Law means any law or regulation concerning: 

	(i)
	the
protection of health and safety;

	(ii)
	the
environment; or

	(iii)
	any
emission or substance which is capable of causing harm to any living organism or the environment.

	(b)
	Each
member of the Parent Group must ensure that it is, and has been, in compliance with all Environmental Law and Environmental Approvals applicable to it, where mandatory or where 

42

 

failure
to do so would be reasonably likely to have a Material Adverse Effect or results in any liability for a Finance Party. 

	(c)
	Each
Obligor must promptly upon becoming aware, notify the Facility Agent of any Environmental Claim current, or to its knowledge, pending which, if substantiated, would be reasonably
likely to either have a Material Adverse Effect or result in any material liability for a Finance Party. 

20.12 Insurance  

Each
member of the Parent Group must insure its business and assets with insurance companies to such an extent and against such risks as companies engaged in a similar business normally insure. 

20.13 Documents  

	(a)
	Without
the prior consent of the Majority Lenders (not to be unreasonably withheld or delayed), no Obligor may make any material amendment to:

	(i)
	its
constitutional documents; or

	(ii)
	the
terms or conditions of any Shareholder Loan.

	(b)
	Notwithstanding
paragraph (a) above, the Company may, with the consent of the Parent, convert a Shareholder Loan into issued ordinary share capital of the Company provided that
the Parent shall at all times remain the registered holder of all shares resulting from any such conversion. 

20.14 Capital Expenditure  

	(a)
	Subject
to paragraphs (b) and (c) below, no member of the Parent Group shall incur any capital expenditure which, when aggregated with the capital expenditure incurred
by any other member of the Parent Group, exceeds euro 85,000,000 in any financial year (the Maximum Cap-Ex).

	(b)
	Any
unutilised balance of the Maximum Cap-Ex in any financial year may be carried forward and added to the next financial year's Maximum Cap-Ex. Such
unutilised capital expenditure may only be carried over for one financial year.

	(c)
	The
restriction set out in paragraph (a) above shall not apply to any capital expenditure incurred in connection with the ISO-Cracker Investment provided that such
capital expenditure does not exceed euro 425,000,000 in aggregate during the life of the Facilities. 

20.15 Group Contribution  

	(a)
	The
Parent shall ensure that an amount equal to 50 per cent. of the Net Group Contribution in any financial year shall promptly be made available to the Company by way of equity
contributions (including retained profit) or subordinated loans to the Company (such subordination to be substantially on the terms of the Shareholder Loan designated as 'Shareholder Loan Agreement
No. 1A').

	(b)
	For
the purposes of this Clause: 

Charges shall mean the aggregate in any financial year of: 

	(i)
	any
amounts required by the Parent to make interest payments as they fall due under the Senior Secured Notes (that term including for this purpose any Financial
Indebtedness refinancing the Senior Secured Notes, and subsequent refinancings of such refinancing 

43

 

Financial
Indebtedness, in each case, so long as the aggregate annual amount of interest payable on that Financial Indebtedness is not increased above the aggregate annual amount payable on the Senior
Secured Notes); 

	(ii)
	any
hedging costs incurred in respect of hedging the Parent's currency exposure;

	(iii)
	any
other costs incurred by the Parent up to a maximum amount of euro3,000,000 per annum; and

	(iv)
	additional
working capital up to a maximum amount of euro7,000,000 per annum. 

Net Group Contribution shall mean the Group Contribution in a financial year less any Charges for that financial year. 

20.16 Shareholder Loans  

No
Shareholder Loan may be prepaid, repaid or amended without the prior consent of the Lenders. This will not prevent the conversion of a Shareholder Loan into share capital of the Company as referred
to in Clause 20.13(b) (Documents). 

20.17 Guarantees  

No
Obligor shall, and shall procure that no other member of the Parent Group will, grant or permit to subsist any guarantee other than: 

	(a)
	the
guarantee granted by the Parent on the terms of this Agreement; and

	(b)
	the
guarantee granted by the Parent on the terms of the HYB Indenture. 

20.18 Intellectual Property  

Each
Obligor shall, and shall procure that each other member of the Parent Group shall: 

	(a)
	make
and maintain such applications and registrations and pay such fees and other amounts and to do all things necessary to maintain and protect any intellectual property rights used
by such member of the Parent Group except where failure to do so would not reasonably be expected to have a Material Adverse Effect; and

	(b)
	take
such reasonable steps as are necessary to prevent third parties infringing those intellectual property rights referred to in paragraph (i) above if such infringement might
reasonably be likely to have a Material Adverse Effect. 

20.19 High Yield Bond  

The
Company shall ensure: 

	(a)
	that
the Loans constitute Senior Indebtedness for the purposes of the HYB Indenture;

	(b)
	that
no HYB Note is prepaid at any time prior to the expiry of the Facilities (including on a change of control (as defined in the HYB Indenture) of the Company);

	(c)
	that
no HYB Note is redeemed for any reason prior to the expiry of the Facilities (including voluntarily or for tax reasons) unless such redemption is from the proceeds of an equity
issue or a subordinated debt issue on terms satisfactory to the Lenders; and

	(d)
	that
there is no legal or covenant defeasance on the terms of the HYB Indenture. 

44

 

20.20 Know your client checks  

	(a)
	Each
Obligor must promptly on the request of any Finance Party supply to that Finance Party any documentation or other evidence which is reasonably requested (via the Facility Agent
in accordance with Clause 34.4(a) (Obligors)) by that Finance Party (whether for itself, on behalf of any Finance Party or any prospective new Lender) to enable a Finance Party or prospective
new Lender to carry out and be satisfied with the results of all its know your customer requirements.

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

21.   DEFAULT  

21.1 Events of Default  

Each
of the events set out in this Clause is an Event of Default. 

21.2 Non-payment  

An
Obligor does not pay on the due date any amount payable by it under the Finance Documents in the manner required under the Finance Documents, unless the non-payment: 

	(a)
	is
caused by technical or administrative error in the automated cash transmission system; and

	(b)
	is
remedied within three Business Days of the date on which that Obligor is notified of non-receipt of payment by the Facility Agent. 

21.3 Breach of other obligations  

	(a)
	Subject
to paragraph (b) below, an Obligor does not comply with any term of Clause 19 (Financial covenants) and Clause 20 (General covenants).

	(b)
	No
Event of Default will occur under paragraph (a) above in relation to Clauses 20.2 (Authorisations), 20.11 (Environmental matters), 20.12 (Insurance), 20.13 (Documents) and
20.18 (Intellectual Property) if the failure to comply:

	(i)
	is
capable of remedy; and

	(ii)
	is
remedied within 20 days of the earlier of the Facility Agent giving notice and that Obligor becoming aware of the non-compliance.

	(c)
	An
Obligor does not comply with any other term of the Finance Documents not already referred to in this Clause, unless the non-compliance:

	(i)
	is
capable of remedy; and

	(ii)
	is
remedied within 30 days of the earlier of the Facility Agent giving notice and the Obligor becoming aware of the non-compliance. 

21.4 Misrepresentation  

A
representation made or repeated by an Obligor in any Finance Document or in any document delivered by or on behalf of any Obligor under any Finance Document is incorrect in any material respect when
made or deemed to be repeated and the circumstances giving rise to such misrepresentation are not remedied within 20 days of the earlier of the Facility Agent giving notice to the Company or
the Obligor becoming aware of the misrepresentations. 

45

 

21.5 Cross-default  

	(a)
	Any
of the following occurs in respect of a member of the Parent Group:

	(i)
	any
of its Financial Indebtedness is not paid when due (after the expiry of any originally applicable grace period);

	(ii)
	any
of its Financial Indebtedness:

	(A)
	becomes
prematurely due and payable;

	(B)
	is
placed on demand; or

	(C)
	is
capable of being declared by a creditor to be prematurely due and payable or being placed on demand, 

in
each case, as a result of an event of default having occurred (howsoever described); or 

	(iii)
	any
commitment for its Financial Indebtedness is cancelled or suspended as a result of an event of default (howsoever described), 

unless
the aggregate amount of Financial Indebtedness falling within all or any of paragraphs (i)-(iii) above is less than euro10,000,000 or its equivalent. 

	(b)
	Any
amount due under the Senior Secured Notes is not paid when due after applicable grace periods. 

21.6 Insolvency  

Any
of the following occurs in respect of a member of the Parent Group: 

	(a)
	it
is, or is deemed for the purposes of any law to be, unable to pay its debts as they fall due or insolvent;

	(b)
	it
admits its inability to pay its debts as they fall due;

	(c)
	it
suspends making payments on any of its debts or announces an intention to do so;

	(d)
	by
reason of actual or foreseen financial difficulties, it begins negotiations with any creditor for the rescheduling in any material respect of any of its indebtedness; or

	(e)
	a
moratorium is declared in respect of any of its indebtedness. 

21.7 Insolvency proceedings  

	(a)
	Except
as provided below, any of the following occurs in respect of a member of the Parent Group:

	(i)
	any
corporate action is taken with a view to a moratorium or a composition, assignment or similar arrangement with any of its creditors;

	(ii)
	a
meeting of its shareholder, directors or other officers is convened for the purpose of considering any resolution for, to petition for or to file documents with a
court or any registrar for, its winding-up, administration or dissolution or any such resolution is passed;

	(iii)
	any
person presents a petition, or files documents with a court or any registrar, for its winding-up, administration or dissolution;

	(iv)
	an
order for its winding-up, administration or dissolution is made; 

46

 

	(v)
	any
liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer is appointed in
respect of it or any of its assets;

	(vi)
	its
shareholders, directors or other officers request the appointment of, or give notice of their intention to appoint, a liquidator, trustee in bankruptcy, judicial
custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer; or

	(vii)
	any
other analogous step or procedure is taken in any jurisdiction.

	(b)
	Paragraph (a)
does not apply to a petition for winding-up presented by a creditor which is being contested in good faith and with due diligence and is discharged or
struck out within 30 days. 

21.8 Creditors' process  

Any
attachment, sequestration, distress, execution or analogous event affects any asset(s) of a member of the Parent Group, having an aggregate value of at least euro5,000,000, and is not discharged
within fourteen days. 

21.9 Cessation of business  

A
member of the Parent Group ceases, or threatens to cease, to carry on business except as a result of any disposal allowed under this Agreement. 

21.10 Effectiveness of Finance Documents  

	(a)
	It
is or becomes unlawful for any Obligor to perform any of its obligations under the Finance Documents.

	(b)
	Any
Finance Document is not effective or is alleged by an Obligor to be ineffective for any reason.

	(c)
	An
Obligor repudiates a Finance Document or formally or in writing evidences an intention to repudiate a Finance Document. 

21.11 Ownership of the Company  

The
Company is not or ceases to be a directly wholly-owned Subsidiary of the Parent. 

21.12 Litigation  

Any
litigation, arbitration or administrative proceeding is commenced against any member of the Parent Group which, if adversely determined, would be reasonably likely to have a Material Adverse
Effect 

21.13 Material adverse change  

Any
event or series of events occurs which would be reasonably likely to have a Material Adverse Effect. 

47

   21.14 Acceleration  

If
an Event of Default is outstanding, the Facility Agent may, and must if so instructed by the Majority Lenders, by notice to the Company: 

	(a)
	cancel
all or any part of the Total Commitments; and/or

	(b)
	declare
that all or part of any amounts outstanding under the Finance Documents are:

	(i)
	immediately
due and payable; and/or

	(ii)
	payable
on demand by the Facility Agent acting on the instructions of the Majority Lenders. 

Any
notice given under this Subclause will take effect in accordance with its terms. 

22.   THE ADMINISTRATIVE PARTIES  

22.1 Appointment and duties of the Facility Agent  

	(a)
	Each
Finance Party (other than the Facility Agent) irrevocably appoints the Facility Agent to act as its agent under the Finance Documents.

	(b)
	Each
Finance Party irrevocably authorises the Facility Agent to:

	(i)
	perform
the duties and to exercise the rights, powers and discretions that are specifically given to it under the Finance Documents, together with any other incidental
rights, powers and discretions; and

	(ii)
	execute
each Finance Document expressed to be executed by the Facility Agent.

	(c)
	The
Facility Agent has only those duties which are expressly specified in the Finance Documents. Those duties are solely of a mechanical and administrative nature. 

22.2 Role of the Mandated Lead Arrangers  

Except
as specifically provided in the Finance Documents, neither Mandated Lead Arranger has any obligations of any kind to any other Party in connection with any Finance Document. 

22.3 No fiduciary duties  

Except
as specifically provided in a Finance Document, nothing in the Finance Documents makes the Facility Agent a trustee or fiduciary for any other Party or any other person. No Finance Party need
hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys. 

22.4 Individual position of the Facility Agent  

	(a)
	If
it is also a Lender, the Facility Agent has the same rights and powers under the Finance Documents as any other Lender and may exercise those rights and powers as though it were
not the Facility Agent.

	(b)
	The
Facility Agent may:

	(i)
	carry
on any business with any Obligor or its related entities (including acting as an agent or a trustee for any other financing); and

	(ii)
	retain
any profits or remuneration it receives under the Finance Documents or in relation to any other business it carries on with any Obligor or its related entities. 

48

 

22.5 Reliance  

The
Facility Agent may: 

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

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

	(c)
	engage,
pay for and rely on professional advisers selected by it (including those representing a Party other than the Facility Agent); and

	(d)
	act
under the Finance Documents through its personnel and agents. 

22.6 Majority Lenders' instructions  

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

	(b)
	The
Facility Agent may assume that unless it has received notice to the contrary, any right, power, authority or discretion vested in any Party, the Lenders or the Majority Lenders
has not been exercised.

	(c)
	The
Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or arbitration proceedings in connection with any
Finance Document.

	(d)
	The
Facility Agent may require the receipt of security satisfactory to it, whether by way of payment in advance or otherwise, against any liability or loss which it may incur in
complying with the instructions of the Lenders. 

22.7 Responsibility  

	(a)
	The
Facility Agent is not responsible to any other Finance Party for the adequacy, accuracy or completeness of:

	(i)
	any
Finance Document or any other document; or

	(ii)
	any
statement or information (whether written or oral) made in or supplied in connection with any Finance Document.

	(b)
	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 that it:

	(i)
	has
made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial
condition and affairs of each Obligor and its related entities and the nature and extent of any recourse against any Party or its assets); and

	(ii)
	has
not relied exclusively on any information provided to it by the Facility Agent in connection with any Finance Document. 

49

 

22.8 Exclusion of liability  

	(a)
	The
Facility Agent is not liable or responsible to any other Finance Party for any action taken or not taken by it in connection with any Finance Document, unless directly caused by
its gross negligence or wilful misconduct.

	(b)
	No
Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the
Facility Agent or in respect of any act or omission of any kind by that officer, employee or agent in connection with any Finance Document. Any officer, employee or agent of the Facility Agent may
rely on this Subclause and enforce its terms under the Contracts (Rights of Third Parties) Act 1999. 

22.9 Default  

	(a)
	The
Facility Agent is not obliged to monitor or enquire whether a Default has occurred. The Facility Agent is not deemed to have knowledge of the occurrence of a Default.

	(b)
	If
the Facility Agent:

	(i)
	receives
notice from a Party referring to this Agreement, describing a Default and stating that the event is a Default; or

	(ii)
	is
aware of the non-payment of any principal or interest or any fee payable to a Lender under this Agreement, 

it
must promptly notify the Lenders. 

22.10 Information  

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

	(b)
	Except
where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it
forwards to another Party.

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

	(i)
	either
initially or on a continuing basis to provide any Lender with any credit or other information concerning the risks arising under or in connection with the Finance
Documents (including any information relating to the financial condition or affairs of any Obligor or its related entities or the nature or extent of recourse against any Party or its assets) whether
coming into its possession before, on or after the date of this Agreement; or

	(ii)
	unless
specifically requested to do so by a Lender in accordance with a Finance Document, to request any certificate or other document from any Obligor.

	(d)
	The
Facility Agent is not obliged to disclose to any person any confidential information supplied to it by or on behalf of a member of the Parent Group solely for the purpose of
evaluating whether any waiver or amendment is required in respect of any term of the Finance Documents.

	(e)
	Each
Obligor irrevocably authorises the Facility Agent to disclose to the other Finance Parties any information which, in its opinion, is received by it in its capacity as the
Facility Agent. 

50

 

22.11 Indemnities  

	(a)
	Without
limiting the liability of any Obligor under the Finance Documents, each Lender must indemnify the Facility Agent for that Lender's Pro Rata Share of any loss or liability
incurred by the Facility Agent in acting as the Facility Agent, except to the extent that the loss or liability is caused by the Facility Agent's gross negligence or wilful misconduct.

	(b)
	The
Facility Agent may deduct from any amount received by it for a Lender any amount due to the Facility Agent from that Lender under a Finance Document but unpaid. 

22.12 Compliance  

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

22.13 Resignation of the Facility Agent  

	(a)
	The
Facility Agent may resign and appoint any of its Affiliates as successor Facility Agent by giving notice to the Lenders and the Company.

	(b)
	Alternatively,
the Facility Agent may resign by giving notice to the Lenders and the Company, in which case the Majority Lenders may appoint a successor Facility Agent.

	(c)
	If
no successor Facility Agent has been appointed under paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent may appoint a
successor Facility Agent.

	(d)
	The
person(s) appointing a successor Facility Agent must consult with the Company and obtain its consent (such consent not to be unreasonably withheld) prior to the appointment unless
the successor Facility Agent is a Lender, is capable of performing the facility agency function and no other Lender has been appointed as successor Facility Agent. Any successor Facility Agent must
have an office in the U.K.

	(e)
	The
resignation of the Facility Agent and the appointment of any successor Facility Agent will both become effective only when the successor Facility Agent notifies all the Parties
that it accepts its appointment. On giving the notification, the successor Facility Agent will succeed to the position of the Facility Agent and the term Facility
Agent will mean the successor Facility Agent.

	(f)
	The
retiring Facility Agent must, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility
Agent may reasonably request for the purposes of performing its functions as the Facility Agent under the Finance Documents.

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

	(h)
	The
Majority Lenders may, by notice to the Facility Agent, require it to resign under paragraph (b) above. 

51

 

22.14 Relationship with Lenders  

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

	(b)
	The
Facility Agent may at any time, and must if requested to do so by the Majority Lenders, convene a meeting of the Lenders.

	(c)
	The
Facility Agent must keep a register of all the Parties and supply any other Party with a copy of the register on request. The register will include each Lender's Facility
Office(s) and contact details for the purposes of this Agreement. 

22.15 Facility Agent's management time  

If
the Facility Agent requires, any amount payable to the Facility Agent by any Party in connection with the occurrence of a default or the enforcement or preservation of any rights by the Facility
Agent under the Finance Documents after the date of this Agreement may include the cost of using its management time or other resources and will be calculated on the basis of such reasonable daily or
hourly rates as the Facility Agent may notify to the relevant Party. This is in addition to any amount in respect of fees or expenses paid or payable to the Facility Agent under any other term of the
Finance Documents. 

22.16 Notice period  

Where
this Agreement specifies a minimum period of notice to be given to the Facility Agent, the Facility Agent may, at its discretion, accept a shorter notice period. 

22.17 Facility Agent  

In
acting as Facility Agent, the agency division of Skandinaviska Enskilda Banken AB (publ) is treated as a separate entity from its other divisions and departments. Any information acquired by
Skandinaviska Enskilda Banken AB (publ) which, in its opinion, is acquired by it otherwise than its capacity as Facility Agent, may be treated as confidential by Skandinaviska Enskilda Banken AB
(publ) and will not be treated as information possessed by the Facility Agent in its capacity as such. 

23.   EVIDENCE AND CALCULATIONS  

23.1 Accounts  

Accounts
maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate for the purpose of any litigation or arbitration proceedings. 

23.2 Certificates and determinations  

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

23.3 Calculations  

Any
interest or fee accruing under this Agreement accrues from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 or 365 days or otherwise,
depending on what the Facility Agent determines is market practice. 

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24.   FEES  

24.1 Facility Agent's fee  

The
Company must pay to the Facility Agent for its own account an agency fee in the manner agreed in the Fee Letter between the Facility Agent and the Company. 

24.2 Arrangement fee  

The
Company must pay to the Lenders for their own account an arrangement fee in the manner agreed in the Fee Letter between the Facility Agent and the Company. This fee shall be distributed by the
Mandated Lead Arrangers among the Lenders in accordance with the arrangements agreed by the Mandated Lead Arrangers with the Lenders. 

24.3 Commitment fee  

	(a)
	The
Company must pay a commitment fee computed on the undrawn, uncancelled amount of each Lender's Commitment.

	(b)
	The
rate for this fee will be 0.45 per cent. of the Margin for the period from the Effective Date up to and including the first Margin Reset Date to occur.

	(c)
	Thereafter,
the rate to apply during each Margin Period shall be calculated by the Facility Agent by reference to the table below and the information set out in the relevant
Compliance Certificate on each Margin Reset Date to occur: 

	Ratio of Adjusted Net Debt to Adjusted Equity
 
	 	Percentage of the Margin

	Greater than 0.75:1.00	 	50
	Less than or equal to 0.75:1.00	 	45

	(d)
	Accrued
commitment fee is payable quarterly in arrear. Accrued commitment fee is also payable to the Facility Agent for a Lender on the date its Commitment is cancelled in full. 

25.   INDEMNITIES AND BREAK COSTS  

25.1 Currency indemnity  

	(a)
	The
Company must, as an independent obligation, indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

	(i)
	that
Finance Party receiving an amount in respect of an Obligor's liability under the Finance Documents; or

	(ii)
	that
liability being converted into a claim, proof, judgment or order, 

in
a currency other than the currency in which the amount is expressed to be payable under the relevant Finance Document. 

	(b)
	Unless
otherwise required by law, each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it
is expressed to be payable. 

25.2 Other indemnities  

	(a)
	The
Company must indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

	(i)
	the
occurrence of any Event of Default; 

53

 

	(ii)
	any
failure by an Obligor to pay any amount due under a Finance Document on its due date, including any resulting from any distribution or redistribution of any amount
among the Lenders under this Agreement;

	(iii)
	(other
than by reason of negligence or default by that Finance Party) a Loan not being made after a Request has been delivered for that Loan;

	(iv)
	a
Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment; or

	(v)
	any
actual or alleged breach by any member of the Group of any Environmental Law or Environmental Approval, where such loss or liability is incurred by that Finance
Party as a direct consequence of it being a party to a Finance Document and would not have been so incurred by such Finance Party if it had not been such a party. 

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

	(b)
	The
Company must indemnify the Facility Agent against any loss or liability incurred by the Facility Agent as a result of:

	(i)
	investigating
any event which the Facility Agent reasonably believes to be a Default; or

	(ii)
	acting
or relying on any notice which the Facility Agent reasonably believes to be genuine, correct and appropriately authorised.

	(c)
	The
Company's obligation to indemnify the Facility Agent against any loss or liability under paragraph (b) above shall not include matters caused by any Finance Party's gross
negligence or wilful misconduct. 

25.3 Break Costs  

	(a)
	The
Company must pay to each Lender its Break Costs.

	(b)
	Break
Costs are the amount (if any) determined by the relevant Lender by which:

	(i)
	the
interest which that Lender would have received for the period from the date of receipt of any part of its share in a Loan or an overdue amount to the last day of the
applicable Term for that Loan or overdue amount if the principal or overdue amount received had been paid on the last day of that Term; 

exceeds

	(ii)
	the
amount which that Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank
market for a period starting on the Business Day following receipt and ending on the last day of the applicable Term.

	(c)
	Each
Lender must supply to the Facility Agent for the Company details of the amount of any Break Costs claimed by it under this Subclause. 

54

   26.   EXPENSES  

26.1 Initial costs  

The
Company must pay to the Facility Agent the amount of all costs and expenses (including legal fees), supported by an invoice or other evidence of incurrence, reasonably incurred by it in connection
with the negotiation, preparation, printing, execution and syndication of the Finance Documents. 

26.2 Subsequent costs  

The
Company must pay to the Facility Agent the amount of all costs and expenses (including legal fees), supported by an invoice or other evidence of incurrence, reasonably incurred by it in connection
with: 

	(a)
	the
negotiation, preparation, printing and execution of any Finance Document (other than a Transfer Certificate) executed after the date of this Agreement; and

	(b)
	any
amendment, waiver or consent requested by or on behalf of an Obligor or specifically allowed by this Agreement. 

26.3 Enforcement costs  

The
Company must pay to each Finance Party the amount of all costs and expenses (including legal fees) reasonably incurred by it in the circumstances then existing in connection with the enforcement
of, or the preservation of any rights under, any Finance Document and supported by an invoice or other evidence of incurrence. 

26.4 Debit of costs  

No
debit shall be made from the Company's account in respect of any costs referred to in Clauses 26.1 (Initial costs) or 26.2 (Subsequent costs) until ten Business Days from receipt by the Company of
an invoice or other evidence of incurrence as evidence that the reimbursement of such costs or expenses is due and payable. 

27.   AMENDMENTS AND WAIVERS  

27.1 Procedure  

	(a)
	Except
as provided in this Clause, any term of the Finance Documents may be amended or waived with the agreement of the Company and the Majority Lenders. The Facility Agent may
effect, on behalf of any Finance Party, an amendment or waiver allowed under this Clause.

	(b)
	The
Facility Agent must promptly notify the other Parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver is binding on all
the Parties. 

27.2 Exceptions  

	(a)
	An
amendment or waiver which relates to:

	(i)
	the
definition of Majority Lenders in Clause 1.1 (Definitions);

	(ii)
	an
extension of the date of payment of any amount to a Lender under the Finance Documents;

	(iii)
	a
reduction in the Margin or a reduction in the amount of any payment of principal, interest, fee or other amount payable to a Lender under the Finance Documents; 

55

 

	(iv)
	an
increase in, or an extension of, a Commitment or the Total Commitments;

	(v)
	a
release of an Obligor;

	(vi)
	a
term of a Finance Document which expressly requires the consent of each Lender;

	(vii)
	the
right of a Lender to assign or transfer its rights or obligations under the Finance Documents; or

	(viii)
	Clause 2.3
(Nature of a Finance Party's rights and obligations), Clause 16 (Guarantee and Indemnity) or this Clause, 

may
only be made with the consent of all the Lenders. 

	(b)
	An
amendment or waiver which relates to the rights or obligations of the Facility Agent or a Mandated Lead Arranger may only be made with the consent of the Facility Agent or that
Mandated Lead Arranger. 

27.3 Change of currency  

If
a change in any currency of a country occurs (including where there is more than one currency or currency unit recognised at the same time as the lawful currency of a country), the Finance
Documents will be amended to the extent the Facility Agent (acting reasonably and after consultation with the Company) determines is necessary to reflect the change. 

27.4 Waivers and remedies cumulative  

The
rights of each Finance Party under the Finance Documents: 

	(a)
	may
be exercised as often as necessary;

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

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

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

28.   CHANGES TO THE PARTIES  

28.1 Assignments and transfers by Obligors  

Neither
Obligor may assign or transfer any of its rights and obligations under the Finance Documents without the prior consent of all the Lenders. 

28.2 Assignments and transfers by Lenders  

	(a)
	A
Lender (the Existing Lender) may, subject to the following provisions of this Subclause, at any time assign or transfer (including by
way of novation) any of its rights and obligations under this Agreement to any other person, any other 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).

	(b)
	Unless
the Company and the Facility Agent otherwise agree, a transfer of part of a Commitment or the rights and obligations under this Agreement by the Existing Lender must be in a
minimum amount of euro10,000,000.

	(c)
	The
consent of the Company is required for an assignment or transfer by a Lender unless:

	(i)
	the
assignment of transfer is to another Lender or an Affiliate of a Lender; or 

56

 

	(ii)
	an
Event of Default is outstanding.

	(d)
	The
consent of the Company to an assignment or transfer must not be unreasonably withheld or delayed. The Company will be deemed to have given its consent five Business Days after the
Lender has requested it unless consent is expressly refused by the Company within that time.

	(e)
	The
Company may not withhold its consent solely because the assignment or transfer might increase the Mandatory Cost unless the Mandatory Cost is itself a material amount and such
increase is material.

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

	(i)
	the
obligations are novated in accordance with the following provisions of this Clause; or

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

	(g)
	Unless
the Facility Agent otherwise agrees, the New Lender must pay to the Facility Agent for its own account, on or before the date any assignment or transfer occurs, a fee of
euro2,000.

	(h)
	Any
reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

28.3 Procedure for transfer by way of novations  

	(a)
	In
this Subclause: 

Transfer Date means, for a Transfer Certificate, the later of: 

	(i)
	the
proposed Transfer Date specified in that Transfer Certificate; and

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

	(b)
	A
novation is effected if:

	(i)
	the
Existing Lender and the New Lender deliver to the Facility Agent a duly completed Transfer Certificate; and

	(ii)
	the
Facility Agent executes it. 

The
Facility Agent must execute as soon as reasonably practicable a Transfer Certificate delivered to it and which appears on its face to be in order. The Facility Agent shall only be obliged to
execute a Transfer Certificate upon its satisfaction with the results of all "know your client" or other checks relating to the identity of any person that it is required to carry out in relation to
the transfer to such New Lender. 

	(c)
	Each
Party (other than the Existing Lender and the New Lender) irrevocably authorises the Facility Agent to execute any duly completed Transfer Certificate on its behalf.

	(d)
	On
the Transfer Date:

	(i)
	the
New Lender will assume the rights and obligations of the Existing Lender expressed to be the subject of the novation in the Transfer Certificate in substitution for
the Existing Lender; and 

57

 

	(ii)
	the
Existing Lender will be released from those obligations and cease to have those rights. 

28.4 Limitation of responsibility of Existing Lender  

	(a)
	Unless
expressly agreed to the contrary, an Existing Lender is not responsible to a New Lender for the legality, validity, adequacy, accuracy, completeness or performance of:

	(i)
	any
Finance Document or any other document; or

	(ii)
	any
statement or information (whether written or oral) made in or supplied in connection with any Finance 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 will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial
condition and affairs of each Obligor and its related entities and the nature and extent of any recourse against any Party or its assets) in connection with its participation in this Agreement; and

	(ii)
	has
not relied exclusively on any information supplied to it by the Existing Lender in connection with any Finance Document.

	(c)
	Nothing
in any Finance Document requires an Existing Lender to:

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

	(ii)
	support
any losses incurred by the New Lender by reason of the non-performance by either Obligor of its obligations under any Finance Document or otherwise. 

28.5 Costs resulting from change of Lender or Facility Office  

If:

	(a)
	a
Lender assigns or transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and

	(b)
	as
a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to pay a Tax Payment or an Increased Cost, 

then,
unless the assignment, transfer or change is made by a Lender to mitigate any circumstances giving rise to the Tax Payment, Increased Cost or a right to be prepaid and/or cancelled by reason of
illegality, the relevant Obligor need only pay that Tax Payment or Increased Cost to the same extent that it would have been obliged to if no assignment, transfer or change had occurred. 

28.6 Changes to the 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 Facility Agent must appoint (with the consent of the Company, such
consent not to be unreasonably withheld or delayed) another Lender or an Affiliate of a Lender to replace that Reference Bank. 

58

 

29.   DISCLOSURE OF INFORMATION  

	(a)
	Each
Finance Party must keep confidential any information supplied to it by or on behalf of any Obligor in connection with the Finance Documents. However, a Finance Party is entitled
to disclose information:

	(i)
	which
is publicly available, other than as a result of a breach by that Finance Party of this Clause;

	(ii)
	in
connection with any legal or arbitration proceedings;

	(iii)
	if
required to do so under any law or regulation;

	(iv)
	if
required to do so, to a governmental, banking, taxation or other regulatory authority;

	(v)
	to
its professional advisers;

	(vi)
	to
the extent allowed under paragraph (b) below;

	(vii)
	to
another Obligor; or

	(viii)
	with
the agreement of the relevant Obligor.

	(b)
	A
Finance Party may disclose to an Affiliate or any person with whom it may enter, or has entered into, any kind of transfer, participation or other agreement in relation to this
Agreement (a participant):

	(i)
	a
copy of any Finance Document; and

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

However,
before a participant may receive any confidential information, it must agree with the relevant Finance Party to keep that information confidential on the terms of paragraph (a) above. 

	(c)
	This
Clause supersedes any previous confidentiality undertaking given by a Finance Party in connection with this Agreement prior to it becoming a Party. 

30.   SET-OFF  

A
Finance Party may set off any matured obligation owed to it by an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any obligation (whether or
not matured) owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. 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. 

31.   PRO RATA SHARING  

31.1 Redistribution  

If
any amount owing by an Obligor under this Agreement to a Lender (the recovering Lender) is discharged by payment, set-off or any other
manner other than through the Facility Agent under this Agreement (a recovery), then: 

	(a)
	the
recovering Lender must, within three Business Days, supply details of the recovery to the Facility Agent; 

59

 

	(b)
	the
Facility Agent must calculate whether the recovery is in excess of the amount which the recovering Lender would have received if the recovery had been received by the Facility
Agent under this Agreement; and

	(c)
	the
recovering Lender must pay to the Facility Agent an amount equal to the excess (the redistribution). 

31.2 Effect of redistribution  

	(a)
	The
Facility Agent must treat a redistribution as if it were a payment by the relevant Obligor under this Agreement and distribute it among the Lenders, other than the recovering
Lender, accordingly.

	(b)
	When
the Facility Agent makes a distribution under paragraph (a) above, the recovering Lender will be subrogated to the rights of the Finance Parties which have shared in that
redistribution.

	(c)
	If
and to the extent that the recovering Lender is not able to rely on any rights of subrogation under paragraph (b) above, the relevant Obligor will owe the recovering Lender
a debt which is equal to the redistribution, immediately payable and of the type originally discharged.

	(d)
	If:

	(i)
	a
recovering Lender must subsequently return a recovery, or an amount measured by reference to a recovery, to an Obligor; and

	(ii)
	the
recovering Lender has paid a redistribution in relation to that recovery, 

each
Finance Party must reimburse the recovering Lender all or the appropriate portion of the redistribution paid to that Finance Party, together with interest for the period while it held the
re-distribution. In this event, the subrogation in paragraph (b) above will operate in reverse to the extent of the reimbursement. 

31.3 Exceptions  

Notwithstanding
any other term of this Clause, a recovering Lender need not pay a redistribution to the extent that: 

	(a)
	it
would not, after the payment, have a valid claim against the relevant Obligor in the amount of the redistribution; or

	(b)
	it
would be sharing with another Finance Party any amount which the recovering Lender has received or recovered as a result of legal or arbitration proceedings, where:

	(i)
	the
recovering Lender notified the Facility Agent of those proceedings; and

	(ii)
	the
other Finance Party had an opportunity to participate in those proceedings but did not do so or did not take separate legal or arbitration proceedings as soon as
reasonably practicable after receiving notice of them. 

32.   SEVERABILITY  

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

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

60

 

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

33.   COUNTERPARTS  

Each
Finance Document may be executed in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 

34.   NOTICES  

34.1 In writing  

	(a)
	Any
communication in connection with a Finance Document must be in writing and, unless otherwise stated, may be given in person, by post or fax; or

	(b)
	Unless
it is agreed to the contrary, any consent or agreement required under a Finance Document must be given in writing. 

34.2 Contact details  

	(a)
	Except
as provided below, the contact details of each Party for all communications in connection with the Finance Documents are those notified by that Party for this purpose to the
Facility Agent on or before the date it becomes a Party.

	(b)
	The
contact details of the Company for this purpose are: 

	Address:	 	Sandhamnsgatan 51, Box 27800, SE-115 93, Stockholm, Sweden
	Fax number:	 	+46 8 663 4929
	Attention:	 	Per Hojgard

	(c)
	The
contact details of the Parent for this purpose are: 

	Address:	 	Sandhamnsgatan 51, Box 27800, SE-115 93, Stockholm, Sweden
	Fax number:	 	+46 8 663 4929
	Attention:	 	Per Hojgard

	(d)
	The
contact details of the Facility Agent for this purpose are: 

	Address:	 	Skandinaviska Enskilda Banken AB (publ), Rissneleden 110, 106 40

Stockholm, Sweden
	Fax number:	 	+46 8 611 0384
	Attention:	 	Foreign Credit Administration.

with
a copy to: 

	Address:	 	SEB Merchant Banking, 2 Cannon Street, London EC4M 6XX,

United Kingdom
	Fax number:	 	+44 20 7329 2304
	Attention:	 	Loans Agency.

	(e)
	Any
Party may change its contact details by giving five Business Days' notice to the Facility Agent or (in the case of the Facility Agent) to the other Parties.

	(f)
	Where
a Party nominates a particular department or officer to receive a communication, a communication will not be effective if it fails to specify that department or officer. 

61

 

34.3 Effectiveness  

	(a)
	Except
as provided below, any communication in connection with a Finance Document will be deemed to be given as follows:

	(i)
	if
delivered in person, at the time of delivery;

	(ii)
	if
posted, five days after being deposited in the post, postage prepaid, in a correctly addressed envelope;

	(iii)
	if
by fax, when received in legible form; and

	(iv)
	if
by e-mail or any other electronic communication, when received in legible form.

	(b)
	A
communication given under paragraph (a) above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on
the next working day in that place.

	(c)
	A
communication to the Facility Agent will only be effective on actual receipt by it. 

34.4 Obligors  

	(a)
	All
communications under the Finance Documents to or from an Obligor must be sent through the Facility Agent.

	(b)
	All
communications under the Finance Documents to or from the Parent must be sent through the Company.

	(c)
	The
Parent irrevocably appoints the Company to act as its agent:

	(i)
	to
give and receive all communications under the Finance Documents;

	(ii)
	to
supply all information concerning itself to any Finance Party; and

	(iii)
	to
sign all documents under or in connection with the Finance Documents.

	(d)
	Any
communication given to the Company in connection with a Finance Document will be deemed to have been given also to the Parent.

	(e)
	The
Facility Agent may assume that any communication made by the Company is made with the consent of the Parent. 

35.   LANGUAGE  

	(a)
	Any
notice given in connection with a Finance Document must be in English.

	(b)
	Any
other document provided in connection with a Finance Document must be:

	(i)
	in
English; or

	(ii)
	(unless
the Facility Agent otherwise agrees) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a
statutory or other official document. 

36.   GOVERNING LAW  

This
Agreement is governed by English law. 

62

 

37.   ENFORCEMENT  

37.1 Jurisdiction  

	(a)
	The
English courts have non-exclusive jurisdiction to settle any dispute in connection with any Finance Document.

	(b)
	The
English courts are the most appropriate and convenient courts to settle any such dispute and each Obligor waives objection to those courts on the grounds of inconvenient forum or
otherwise in relation to proceedings in connection with any Finance Document.

	(c)
	This
Clause is for the benefit of the Finance Parties only. To the extent allowed by law, a Finance Party may take:

	(i)
	proceedings
in any other court; and

	(ii)
	concurrent
proceedings in any number of jurisdictions. 

37.2 Service of process  

	(a)
	Each
Obligor not incorporated in England and Wales irrevocably appoints LeBoeuf, Lamb Corporate Services Limited, No. 1 Minster Court, London EC3R 7YL as its agent under the
Finance Documents for service of process in any proceedings before the English courts.

	(b)
	If
any person appointed as process agent is unable for any reason to act as agent for service of process, the Company (on behalf of the Obligors) must immediately appoint another
agent on terms acceptable to the Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose.

	(c)
	Each
Obligor agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings.

	(d)
	This
Clause does not affect any other method of service allowed by law. 

37.3 Waiver of immunity  

Each
Obligor irrevocably and unconditionally: 

	(a)
	agrees
not to claim any immunity from proceedings brought by a Finance Party against it in relation to a Finance Document and to ensure that no such claim is made on its behalf;

	(b)
	consents
generally to the giving of any relief or the issue of any process in connection with those proceedings; and

	(c)
	waives
all rights of immunity in respect of it or its assets. 

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

63

  

 
 

SCHEDULE 1    
    
    ORIGINAL PARTIES    
    

	Name of Original Lender
 
	 	Term Loan Commitments

	 
	 	(euro)

	Skandinaviska Enskilda Banken AB (publ)	 	21,000,000
	Svenska Handelsbanken AB (publ)	 	21,000,000
	DnB NOR Bank ASA	 	17,500,000
	Danske Bank A/S	 	14,500,000
	HSH Nordbank AG, Copenhagen Branch	 	14,500,000
	Nord/LB Norddeutsche Landesbank Girozentrale Stockholm Branch	 	14,500,000
	Nordea Bank AB (publ)	 	14,500,000
	Swedbank (FöreningsSparbanken AB (publ)	 	14,500,000
	ING Bank N.V.	 	10,000,000
	Islandsbanki hf.	 	8,000,000
	Total Term Loan Commitments	 	euro 150,000,000

	
 Name of Original Lender
 
	
 	

Revolving Credit Commitments

	 
	 	(euro)

	Skandinaviska Enskilda Banken AB (publ)	 	21,000,000
	Svenska Handelsbanken AB (publ)	 	21,000,000
	DnB NOR Bank ASA	 	17,500,000
	Danske Bank A/S	 	14,500,000
	HSH Nordbank AG, Copenhagen Branch	 	14,500,000
	Nord/LB Norddeutsche Landesbank Girozentrale Stockholm Branch	 	14,500,000
	Nordea Bank AB (publ)	 	14,500,000
	Swedbank (FöreningsSparbanken AB (publ)	 	14,500,000
	ING Bank N.V.	 	10,000,000
	Islandsbanki hf.	 	8,000,000
	Total Revolving Credit Commitments	 	Euro 150,000,000
	
Total Commitments	
 	
euro 300,000,000

64

 
 
 

SCHEDULE 2    
    
    CONDITIONS PRECEDENT DOCUMENTS    
    

Obligors  

	1.
	A
copy of the constitutional documents of each Obligor.

	2.
	A
copy of resolutions of the board of directors of each Obligor approving the terms of, and the transactions contemplated by, and authorising (or, in the case of the Agreement when
originally entered into on 28th June, 2004, ratifying) the execution by specified persons of, this Agreement, the Amendment Agreement and the Appointment Letter (as defined in the Amendment
Agreement).

	3.
	A
specimen of the signature of each person authorised on behalf of each Obligor to execute any Finance Document or to sign or send any document or notice in connection with any Finance
Document including this Agreement, the Amendment Agreement and the Appointment Letter.

	4.
	A
certificate of an authorised signatory of the Company certifying that each copy document specified in this Schedule is correct, complete and in full force and effect as at a date no
earlier than the date of the Amendment Agreement.

	5.
	Evidence
that the agent of each Obligor under the Finance Documents for service of process in England and Wales has accepted its appointment.

	6.
	A
copy of the most recent audited consolidated financial statements for each Obligor. 

Legal opinion  

	1.
	A
legal opinion of Allen & Overy LLP, legal advisers in England to the Finance Parties substantially in the form of Schedule 7 (Form of legal opinion of Allen &
Overy LLP), addressed to the Finance Parties.

	2.
	A
legal opinion of Advokatfirman Vinge KB, legal advisers in Sweden to the Finance Parties, addressed to the Finance Parties in relation to this Agreement and the Amendment Agreement. 

Other documents and evidence  

	1.
	Evidence
that all fees and expenses due and payable on or before the first Utilisation Date from the Company under this Agreement and the Amendment Agreement have been or will be paid
by the first Utilisation Date.

	2.
	Evidence
that each Shareholder Loan has been subordinated to the Facilities substantially on the terms of Shareholder Loan Agreement No.1A.

	3.
	A
certified copy of a group structure chart for the Parent Group as at the Signing Date.

	4.
	Copies
of financial and other information as requested by the Lenders prior to the date of the Agreement including, but not limited to, revised five year financial projections.

	5.
	A
certified copy of the HYB Indenture and any other document which the Facility Agent (acting reasonably) considers is necessary or desirable in connection with the HYB Issue.

	6.
	Evidence
that as at 30th September, 2004 the Ratio of Adjusted Net Debt to Adjusted Equity was less than or equal to 0.60:1.00.

	7.
	A
copy of any other authorisation, consent or other document, opinion or assurance which the Facility Agent has notified the Company prior to the date of this Agreement is necessary or
desirable in connection with the entry into and performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document including this
Agreement, the Amendment Agreement and the Appointment Letter. 

65

 
 
 

SCHEDULE 3    
    
    FORM OF REQUEST    
    

	

To:	
 	

[SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] as Facility Agent
	

From:	
 	

Preem Petroleum AB
	

Date:	
 	

[                        ]

PREEM PETROLEUM AB (publ) €300,000,000 Facilities Agreement

dated 28th June, 2004 as amended and restated by an amendment and restatement agreement

dated 2nd December, 2004 (the Agreement)  

	1.
	We
refer to the Agreement. This is a Request.

	2.
	We
wish to borrow a [Term Loan/Revolving Loan](1) on the following terms:

	(a)
	Utilisation
Date: [                        ]

	(b)
	Amount:
euro[                        ]

	(c)
	Term:
[                        ].

	3.
	Our
payment instructions are: [                        ].

	4.
	We
confirm that each condition precedent under the Agreement which must be satisfied on the date of this Request is so satisfied.

	5.
	This
Request is irrevocable. 

By: 

PREEM
PETROLEUM AB (publ) 

	(1)
	Delete
as appropriate 

66

  

 
 

SCHEDULE 4    
    
    CALCULATION OF THE MANDATORY COST    
    

1.     General  

The
Mandatory Cost is the weighted average of the rates for each Lender calculated below by the Facility Agent on the first day of a Term. The Facility Agent must distribute each amount of Mandatory
Cost among the Lenders on the basis of the rate for each Lender. 

2.     For a Lender lending from a Facility Office in the U.K.  

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

	 	E × 0.01
 300	 	per cent. per annum

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

	(b)
	For
the purposes of this paragraph 2:

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

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

	(c)
	Each
rate calculated in accordance with the formula is, if necessary, rounded upward to four decimal places. 

	(d)	 	(i)	Each Lender must supply to the Facility Agent the information required by it to make a calculation of the rate for that Lender. The Facility Agent may assume that this information is correct in all respects.
	

 	
 	

(ii)	

If a Lender fails to do so, the Facility Agent may assume that the Lender's obligations in respect of the fees rules are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the U.K.
	

 	
 	

(iii)	

The Facility Agent has no liability to any Party if its calculation over or under compensates any Lender.

3.     For a Lender lending from a Facility Office in a Participating Member State  

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

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

4.     Changes  

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

	(a)
	any
change in law or regulation; or

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

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

67

 
 
 

SCHEDULE 5    
    
    FORM OF TRANSFER CERTIFICATE    
    

	To:	 	[SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] as Facility Agent
	

From:	
 	

[THE EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)
	

Date:	
 	

[                        ]

PREEM PETROLEUM AB (publ) €300,000,000 Facilities Agreement

dated 28th June, 2004 as amended and restated by an amendment and restatement agreement

dated 2nd December, 2004 (the Agreement)  

We
refer to the Agreement. This is a Transfer Certificate. 

	1.
	The
Existing Lender transfers by novation to the New Lender the Existing Lender's rights and obligations referred to in the Schedule below in accordance with the terms of the
Agreement.

	2.
	The
proposed Transfer Date is [    ].

	3.
	The
administrative details of the New Lender for the purposes of the Agreement are set out in the Schedule. 

68

 
 
 

THE SCHEDULE    
    

Rights and obligations to be transferred by novation

[insert relevant details, including applicable Commitment (or part)] 

Administrative details of the New Lender

[insert details of Facility Office, address for notices and payment details etc.] 

	[EXISTING LENDER]	 	[NEW LENDER]
	

By:	
 	

 	
 	

By:	
 	

 

The
Transfer Date is confirmed by the Facility Agent as [                        ]. 

[SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] 

By:

69

 
 
 

SCHEDULE 6    
    
    FORM OF COMPLIANCE CERTIFICATE    
    

	To:	 	[SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] as Facility Agent
	

From:	
 	

[OBLIGOR]
	

Date:	
 	

[                ]

PREEM PETROLEUM AB (publ) €300,000,000 Facilities Agreement

dated 28th June, 2004 as amended and restated by an amendment and restatement agreement

dated 2nd December, 2004 (the Agreement)  

	1.
	We
refer to the Agreement. This is a Compliance Certificate.

	2.
	We
confirm that as at [relevant testing date]:

	(a)
	Adjusted
Net Debt is [            ] and Adjusted Equity is [            ]; accordingly the ratio of Adjusted Net Debt to Adjusted
Equity is [    ]:1.00;

	(b)
	Operating
Cashflow is [            ] and -Gross Interest is [            ]; accordingly the ratio of Operating Cashflow to Gross
Interest is [    ]:1.00.

	3.
	We
confirm that capital expenditure since the start of the [20[    ]]/20[    ]]
financial year is euro [            ].

	4.
	We
set out below calculations establishing the figures in paragraph 2 above: 

[                        ]

	5.
	We
confirm that no Default is outstanding as at [relevant testing date](1) 

[                        ] 

[OBLIGOR]

By::

	(1)
	If
this statement cannot be made, the certificate should identify any Default that is outstanding and the steps, if any, being taken to remedy it. 

70

 
 
 

SCHEDULE 7    
    
    FORM OF LEGAL OPINION OF ALLEN & OVERY LLP    
    

	To:	 	The Finance Parties named as original parties

to the Amendment Agreement (as defined below).
	

Date:	
 	

[                ]

Dear
Sirs, 

PREEM PETROLEUM AB (publ) €300,000,000 Facilities Agreement

dated 28th June, 2004 as amended and restated by an amendment and restatement agreement

dated 2nd December, 2004 (respectively the Agreement and the Amendment Agreement)  

We
have received instructions from SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ) in connection with the Agreement and the Amendment Agreement. 

Words
defined in the Agreement have the same meaning when used in this opinion. 

Subject
to the qualifications set out below and to any matters not disclosed to us, we are of the opinion that, so far as the present laws of England are concerned, each of the Agreement and the
Amendment Agreement constitutes a legally binding, valid and enforceable obligation of each Obligor. 

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

	(a)
	We
assume that the Amendment Agreement has been, and that the Agreement when originally entered into on 28th June, 2004 was, duly authorised and entered into by each party to it.

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

	(c)
	We
assume that no foreign law affects the conclusions stated above. We assume, in particular, that, so far as the laws of Sweden are concerned, each of the Agreement and the Amendment
Agreement constitutes a legally binding, valid and enforceable obligation of each Obligor.

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

This
opinion is given for your sole benefit and may not be relied upon by or disclosed to any other person. 

Yours
faithfully, 

71

QuickLinks

Exhibit 4.9

SCHEDULE 1 To the Amendment and Restatement Agreement AMENDED AND RESTATED CREDIT AGREEMENT

SIGNATORIES To the Amendment and Restatement Agreement

SCHEDULE 1 ORIGINAL PARTIES

SCHEDULE 2 CONDITIONS PRECEDENT DOCUMENTS

SCHEDULE 3 FORM OF REQUEST

SCHEDULE 4 CALCULATION OF THE MANDATORY COST

SCHEDULE 5 FORM OF TRANSFER CERTIFICATE

THE SCHEDULE

SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE

SCHEDULE 7 FORM OF LEGAL OPINION OF ALLEN & OVERY LLP

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