Document:

Exhibit 4.43

 

		

 

EXECUTION VERSION

 

USD400,000,000

 

FACILITY AGREEMENT

 

DATED 17 December 2014

 

FOR

 

RANDGOLD RESOURCES LIMITED

AS BORROWER

 

WITH

 

HSBC BANK PLC

ACTING AS ARRANGER

 

with

 

HSBC BANK PLC

ACTING AS FACILITY AGENT

 

    	 

    	 

    

 

CONTENTS

 

	Clause	 	Page
	 	 	 	 	 
	1.	 	Definitions and Interpretation	 	1
	 	 	 	 	 
	2.	 	The Facility	 	19
	 	 	 	 	 
	3.	 	Purpose	 	21
	 	 	 	 	 
	4.	 	Conditions of Utilisation	 	21
	 	 	 	 	 
	5.	 	Utilisation	 	23
	 	 	 	 	 
	6.	 	Repayment	 	24
	 	 	 	 	 
	7.	 	Prepayment and Cancellation	 	25
	 	 	 	 	 
	8.	 	Interest	 	30
	 	 	 	 	 
	9.	 	Interest Periods	 	31
	 	 	 	 	 
	10.	 	Changes to the Calculation of Interest	 	31
	 	 	 	 	 
	11.	 	Fees	 	32
	 	 	 	 	 
	12.	 	Tax Gross Up and Indemnities	 	34
	 	 	 	 	 
	13.	 	Increased Costs	 	38
	 	 	 	 	 
	14.	 	Other Indemnities	 	40
	 	 	 	 	 
	15.	 	Mitigation by the Lenders	 	42
	 	 	 	 	 
	16.	 	Costs and Expenses	 	42
	 	 	 	 	 
	17.	 	Representations	 	44
	 	 	 	 	 
	18.	 	Information Undertakings	 	48
	 	 	 	 	 
	19.	 	Financial Covenants	 	52
	 	 	 	 	 
	20.	 	General Undertakings	 	55
	 	 	 	 	 
	21.	 	Events of Default	 	62
	 	 	 	 	 
	22.	 	Changes to the Lenders	 	67
	 	 	 	 	 
	23.	 	Changes to the Borrower	 	72
	 	 	 	 	 
	24.	 	Role of the Facility Agent and the Arranger	 	73
	 	 	 	 	 
	25.	 	Conduct of Business by the Finance Parties	 	83
	 	 	 	 	 
	26.	 	Sharing among the Finance Parties	 	83
	 	 	 	 	 
	27.	 	Payment Mechanics	 	86
	 	 	 	 	 
	28.	 	Set-Off	 	90
	 	 	 	 	 
	29.	 	Notices	 	90
	 	 	 	 	 
	30.	 	Calculations and Certificates	 	93
	 	 	 	 	 
	31.	 	Partial Invalidity	 	93
	 	 	 	 	 
	32.	 	Remedies and Waivers	 	93
	 	 	 	 	 
	33.	 	Amendments and Waivers	 	93
	 	 	 	 	 
	34.	 	Confidentiality	 	97

 

    	 

    	 

    

  

	35.	 	Counterparts	 	101
	 	 	 	 	 
	36.	 	Governing Law	 	102
	 	 	 	 	 
	37.	 	Enforcement	 	102
	 	 	 	 	 
	Schedule 1 The Original Lenders	 	103
	 	 	 
	Schedule 2 Conditions Precedent	 	104
	 	 	 
	Schedule 3 Requests	 	106
	 	 	 
	Schedule 4 Form of Transfer Certificate	 	107
	 	 	 
	Schedule 5 Form Of Assignment Agreement	 	109
	 	 	 
	Schedule 6 Form of Compliance Certificate	 	112
	 	 	 
	Schedule 7 Timetables	 	113
	 	 	 
	Schedule 8 Form of Increase Confirmation   	 	114

 

    	 

    	 

    

  

THIS AGREEMENT is dated 17 December
2014 and made between:

 

		(1)	RANDGOLD RESOURCES LIMITED (the “Borrower”);

 

		(2)	HSBC BANK PLC as mandated lead arranger (the “Arranger”);

 

		(3)	HSBC BANK PLC as agent of the other Finance Parties (the “Facility Agent”);
and

 

		(4)	THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the “Original Lenders”).

 

IT IS AGREED as follows:

 

SECTION 1

 

INTERPRETATION

 

		1.	Definitions and Interpretation

 

		1.1	Definitions

 

In this Agreement:

 

“Acceptable
Bank” means:

 

		(a)	a bank or financial institution which has a rating for its short-term unsecured and non credit-enhanced
debt obligations of A1 or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or F1 or higher by Moody’s
Investors Service Limited or a comparable rating from an internationally recognised credit rating agency; or

 

		(b)	any other bank or financial institution approved by the Facility Agent.

 

“Affiliate”
means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that
Holding Company.

 

“Annual
Financial Statements” has the meaning given to that term in Clause 18 (Information Undertakings).

 

“Assignment
Agreement” means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or
any other form agreed between the relevant assignor and assignee.

 

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

 

“Availability
Period” means the period from and including the date of this Agreement to and including the date falling one month prior
to the Termination Date.

 

    	- 1-

    	 

    

 

“Available
Commitment” means a Lender’s Commitment minus:

 

		(a)	the amount of its participation in any outstanding Loans; and

 

		(b)	in relation to any proposed Utilisation, the amount of its participation in any Loans that are
due to be made on or before the proposed Utilisation Date.

 

“Available
Facility” means the aggregate for the time being of each Lender’s Available Commitment.

 

“Bank
Levy” means any amount payable by a Lender (or any of its Affiliates) on the basis of, or in relation to, its balance
sheet or capital base or any part of it or its liabilities or minimum regulatory capital or any combination thereof (including
the UK Bank levy as set out in the Finance Act 2011, the French taxe bancaire de risqué systématique as set out in
the Finance Bill 2011, the German bank levy as set out in the German Restructuring Fund Act 2010 (as amended)) and, in relation
to a Lender, any Tax in any jurisdiction on a similar basis or for a similar purpose (and imposed by reference to assets and/or
liabilities) and which has been publicly announced prior to the date of this Agreement.

 

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

 

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

 

exceeds:

 

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

 

“Business
Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London and Jersey.

 

“Code”
means the US Internal Revenue Code of 1986.

 

“Commitment”
means:

 

		(a)	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment”
in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement or assumed
by it in accordance with Clause 2.2 (Increase); and

 

		(b)	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement
or assumed by it in accordance with Clause 2.2 (Increase),

 

    	- 2-

    	 

    

  

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

 

“Compliance
Certificate” means a certificate substantially in the form set out in Schedule 6 (Form of Compliance Certificate)
in form and substance satisfactory to the Facility Agent (acting reasonably).

 

“Confidential
Information” means all information relating to the Borrower, the Group, any Non-Group Entity, the Finance Documents or
the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which
is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the
Facility from either:

 

		(a)	any member of the Group, any Non-Group Entity or any of its advisers; or

 

		(b)	another Finance Party, if the information was obtained by that Finance Party directly or indirectly
from any member of the Group, any Non-Group Entity or any of its advisers,

 

in whatever form, and includes information
given orally and any document, electronic file or any other way of representing or recording information which contains or is derived
or copied from such information but excludes information that:

 

		(i)	is or becomes public information other than as a direct or indirect result of any breach by that
Finance Party of Clause 34 (Confidentiality); or

 

		(ii)	is identified in writing at the time of delivery as non-confidential by any member of the Group,
any Non-Group Entity or any of its advisers; or

 

		(iii)	is known by that Finance Party before the date the information is disclosed to it in accordance
with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far
as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has
not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality to the Group, any Non-Group
Entity or otherwise.

 

“Confidentiality
Undertaking” means a confidentiality undertaking substantially in a recommended form of the LMA or in any other form
agreed between the Borrower and the Facility Agent.

 

“Debt
Cover” shall have the meaning set out in Clause 19.1 (Financial definitions).

 

“Default”
means an Event of Default or any event or circumstance specified in Clause 21 (Events of Default) which would (with
the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination
of any of the foregoing) be an Event of Default.

 

“Defaulting
Lender” means any Lender:

 

    	- 3-

    	 

    

  

		(a)	which has failed to make its participation in a Loan available (or has notified the Facility Agent
or the Borrower (which has notified the Facility Agent) that it will not make its participation in a Loan available) by the Utilisation
Date of that Loan in accordance with Clause 5.4 (Lenders’ participation);

 

		(b)	which has otherwise rescinded or repudiated a Finance Document; or

 

		(c)	with respect to which an Insolvency Event has occurred and is continuing,

 

unless, in the case of paragraph
(a) above:

 

		(i)	its failure to pay is caused by:

 

		(A)	administrative or technical error; or

 

		(B)	a Disruption Event; and

 

payment is made within five Business
Days of its due date; or

 

		(ii)	the Lender is disputing in good faith whether it is contractually obliged to make the payment in
question.

 

“Disruption
Event” means either or both of:

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in
order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond
the control of, any of the Parties; or

 

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of a Party preventing that, or any other Party:

 

		(i)	from performing its payment obligations under the Finance Documents; or

 

		(ii)	from communicating with other Parties in accordance with the terms of the Finance Documents,

 

and which (in either such case) is
not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

“Environment”
means humans, animals, plants and all other living organisms including the ecological systems of which they form part and the following
media:

 

		(a)	air (including, without limitation, air within natural or man-made structures, whether above or
below ground);

 

		(b)	water (including, without limitation, territorial, coastal and inland waters, water under or within
land and water in drains and sewers); and

 

    	- 4-

    	 

    

  

		(c)	land (including, without limitation, land under water).

 

“Environmental
Claim” means any claim, proceeding or formal notice or investigation by any person in respect of a breach of any Environmental
Law which is not frivolous or vexatious and is not discharged or dismissed within 21 consecutive days of commencement.

 

“Environmental
Law” means any applicable law or regulation which relates to:

 

		(a)	the pollution or protection of the Environment;

 

		(b)	the conditions of the workplace;

 

		(c)	the generation, handling, storage, use, release or spillage of any substance which, alone or in
combination with any other, is capable of causing harm to the Environment, including, without limitation, any waste; or

 

		(d)	the reporting, licensing, permitting, transportation, storage, management, disposal, investigation
or remediation of releases, or threatened release of Hazardous Materials into the air, surface water, groundwater, or land, or
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation or handling of Hazardous
Materials.

 

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

 

“Event
of Default” means any event or circumstance specified as such in Clause 21 (Events of Default).

 

“Existing
Facility” means the facility made available under the Existing Facility Agreement.

 

“Existing
Facility Agreement” means the USD200,000,000 facility agreement dated 17 May 2013 between, amongst others, Randgold Resources
Limited as borrower and HSBC Bank plc as the facility agent.

 

“Facility”
means the revolving credit facility made available under this Agreement as described in Clause 2 (The Facility).

 

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

 

“FATCA”
means:

 

		(a)	sections 1471 to 1474 of the Code or any associated regulations;

 

		(b)	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement
between the US and any other jurisdiction,

 

    	- 5-

    	 

    

  

			which (in either case) facilitates the implementation of any law or regulation referred to in paragraph
(a) above; or

 

		(c)	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs
(a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other
jurisdiction.

 

“FATCA
Application Date” means:

 

		(a)	in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code
(which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

 

		(b)	in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the
Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources
within the US), 1 January 2017; or

 

		(c)	in relation to a “passthru payment” described in section 1471(d)(7) of the Code not
falling within paragraphs (a) or (b) above, 1 January 2017,

 

or, in each case,
such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change
in FATCA after the date of this Agreement.

 

“FATCA
Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

“FATCA
Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

“Fee Letter”
means:

 

		(a)	any letter or letters dated on or about the date of this Agreement between the Arranger and the
Borrower (or the Facility Agent and the Borrower or any of the Lenders and the Borrower) setting out any of the fees referred to
in Clause 11 (Fees) or otherwise agreed to be paid by the Borrower; and

 

		(b)	to the extent agreed between the Borrower and the Increase Lender, any agreement setting out fees
payable to a Finance Party referred to in paragraph (f) of Clause 2.2 (Increase).

 

“Finance
Document” means this Agreement, any Fee Letter, any Utilisation Request, any Transfer Certificate to which the Borrower
is a party, any Assignment Agreement to which the Borrower is a party and any other document designated as such by the Facility
Agent and the Borrower.

 

“Finance
Party” means the Facility Agent, the Arranger or a Lender.

 

    	- 6-

    	 

    

  

“Financial
Indebtedness” means any indebtedness for or in respect of:

 

		(a)	moneys borrowed;

 

		(b)	any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent;

 

		(c)	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures,
loan stock or any similar instrument excluding Trade Instruments;

 

		(d)	the amount of any liability in respect of any lease or hire purchase contract which would, in accordance
with GAAP, be treated as a finance or capital lease;

 

		(e)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse
basis);

 

		(f)	any amount raised under any other transaction (including any forward sale or purchase agreement)
having the commercial effect of a borrowing;

 

		(g)	for the purpose of Clause 21.5 (Cross default) only, any derivative transaction entered
into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or
close-out of that derivatives transaction, that amount) shall be taken into account);

 

		(h)	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary
letter of credit or any other instrument issued by a bank or financial institution other than Trade Instruments; and

 

		(i)	(without double counting) the amount of any liability in respect of any guarantee or indemnity
for any of the items referred to in paragraphs (a) to (h) above.

 

“Financial
Quarter” means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

“Financial
Year” means the annual accounting period of the Group ending on or about 31 December in each year or, subject to compliance
with Clause 18.3 (Requirements as to financial statements), such other date as selected by the Borrower.

 

“GAAP”
means generally accepted accounting principles in Jersey and IFRS.

 

“Governmental
Authority” means the government of any jurisdiction, or any political subdivision thereof, whether provincial, state
or local, and any department, ministry, agency, instrumentality, authority, body, court, central bank or other entity lawfully
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Group”
means the Borrower and its Subsidiaries from time to time.

 

    	- 7-

    	 

    

  

“Group
Structure Chart” means the group structure chart in the agreed form.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum, petroleum distillates or petroleum by-products, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, cyanide, infectious or medical wastes and all other hazardous or toxic substances or wastes of any nature,
including mine-tailings, regulated pursuant to any Environmental Law.

 

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

 

“IFRS”
means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant
financial statements.

 

“Impaired Agent”
means the Facility Agent at any time when:

 

		(a)	it has failed to make (or has notified a Party that it will not make) a payment required to be
made by it under the Finance Documents by the due date for payment;

 

		(b)	the Facility Agent otherwise rescinds or repudiates a Finance Document;

 

		(c)	(if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of
the definition of “Defaulting Lender”; or

 

		(d)	an Insolvency Event has occurred and is continuing with respect to the Facility Agent;

 

unless, in the case
of paragraph (a) above:

 

		(i)	its failure to pay is caused by:

 

		(A)	administrative or technical error; or

 

		(B)	a Disruption Event; and

 

payment is made
within five Business Days of its due date; or

 

		(ii)	the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment
in question.

 

“Increase
Confirmation” means a confirmation substantially in the form set out in Schedule 8 (Form of Increase Confirmation).

 

“Increase
Lender” has the meaning given to that term in Clause 2.2 (Increase).

 

“Information
Memorandum” means the document in the form approved by the Borrower concerning the Group which, at the Borrower’s
request and on its behalf, was prepared in relation to this transaction and distributed by the Arranger to selected financial institutions
before the date of this Agreement.

 

    	- 8-

    	 

    

  

“Insolvency
Event” in relation to a Finance Party means that the Finance Party:

 

		(a)	is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

		(b)	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally
to pay its debts as they become due;

 

		(c)	makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

		(d)	institutes or has instituted against it by a regulator, supervisor or any similar official with
primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation
or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation by it or such regulator, supervisor or similar official;

 

		(e)	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other
relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented
for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such
proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

		(i)	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making
of an order for its winding-up or liquidation; or

 

		(ii)	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution
or presentation thereof;

 

		(f)	has exercised in respect of it one or more of the stabilisation powers pursuant to Part 1 of the
Banking Act 2009 and/or has instituted against it a bank insolvency proceeding pursuant to Part 2 of the Banking Act 2009 or a
bank administration proceeding pursuant to Part 3 of the Banking Act 2009;

 

		(g)	has a resolution passed for its winding-up, official management or liquidation (other than pursuant
to a consolidation, amalgamation or merger);

 

		(h)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long
as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a
person or entity described in paragraph (d) above);

 

		(i)	has a secured party take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and
such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within
30 days thereafter;

 

    	- 9-

    	 

    

  

		(j)	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction,
has an analogous effect to any of the events specified in paragraphs (a) to (i) above; or

 

		(k)	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the foregoing acts.

 

“Interest Period”
means, in relation to a Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid
Sum, each period determined in accordance with Clause 8.3 (Default interest).

 

“Interpolated
Screen Rate” means, in relation to LIBOR for any Loan, the rate (rounded to the same number of decimal places as the
two relevant Screen Rates) which results from interpolating on a linear basis using the method recommended by the International
Swaps and Derivatives Association (ISDA) between:

 

		(a)	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which
is less than the Interest Period of that Loan; and

 

		(b)	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which
exceeds the Interest Period of that Loan,

 

each as of the
Specified Time on the Quotation Day for the currency of that Loan.

 

“Lender”
means:

 

		(a)	any Original Lender; and

 

		(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance
with Clause 2.2 (Increase) or Clause 22 (Changes to the Lenders),

 

which in each case has not ceased
to be a Party in accordance with the terms of this Agreement.

 

“LIBOR”
means, in relation to any Loan:

 

		(a)	the applicable Screen Rate;

 

		(b)	(if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate
for that Loan; or

 

		(c)	if:

 

		(i)	no Screen Rate is available for the currency of that Loan; or

 

		(ii)	no Screen Rate is available for the Interest Period of that Loan and it is not possible to calculate
an Interpolated Screen Rate for that Loan,

 

the Reference Bank
Rate,

 

    	- 10-

    	 

    

  

as of, in the case
of paragraphs (a) and (c) above, the Specified Time on the Quotation Day for the currency of that Loan and for a period equal in
length to the Interest Period of that Loan.

 

“Life
of Mine Plan” means, in respect of each Material Property, the mine plan prepared relating to the period from the current
time until the time when the last block of ore is mined.

 

“Limitation Acts”
means the Limitation Act 1980 and the Foreign Limitation Periods Act 1984.

 

“LMA”
means the Loan Market Association.

 

“Loan”
means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan.

 

“Majority
Lenders” means a Lender or Lenders whose Commitments aggregate more than 662⁄3% of the Total Commitments (or, if
the Total Commitments have been reduced to zero, aggregated more than 662⁄3% of the Total Commitments immediately prior to
the reduction).

 

“Margin”
means

 

		(a)	prior to the first reset date (as defined below), 1.5 per cent. per annum; and

 

		(b)	thereafter, subject to the other provisions of this definition, the margin calculated in accordance
with the table below:

 

	Debt Cover	 	Margin % p.a.
	Less than or equal to 1.00:1	 	1.50
	Greater than 1.00:1 but less than or equal to 2.00:1	 	1.75
	Greater than 2.00:1	 	2.00

 

However:

 

		(i)	any increase or decrease in the Margin for a Loan shall take effect on the date (the “reset
date”) which is five Business Days after receipt by the Facility Agent of the Compliance Certificate for that Relevant
Period pursuant to Clause ‎18.2 (Compliance Certificate);

 

		(ii)	if, following receipt by the Facility Agent of the Compliance Certificate related to the relevant
Annual Financial Statements, that Compliance Certificate does not confirm the basis for a reduced or increased Margin, then paragraph
(b) of Clause 8.2 (Payment of interest) shall apply and the Margin for that Loan shall be the percentage per annum determined
using the table above and the revised

 

    	- 11-

    	 

    

  

			ratio of Debt Cover calculated using the figures in that Compliance Certificate;

 

		(iii)	while an Event of Default under Clause 21.1 (Non-payment), Clause 21.2 (Financial covenants),
Clause 21.6 (Insolvency) or Clause 21.7 (Insolvency proceedings) is continuing, the Margin for each Loan shall
be the highest percentage per annum set out above for a Loan; and

 

		(iv)	for the purpose of determining the Margin, “Debt Cover” shall be determined in accordance
with Clause 19.1 (Financial definitions).

 

“Material
Adverse Effect” means a material adverse effect on:

 

		(a)	the business or financial condition of the Group taken as a whole resulting from the closure of,
or stoppage of production at, and the inability to sell the output of production from, 3 or more of the Material Properties for
a period of more than 21 consecutive days, and the Parties acknowledge (for the avoidance of doubt) that no processing takes place
at Gounkoto Gold Mine (Mali) and therefore no output of production is sold from Gounkoto Gold Mine (Mali) but any closure of, or
stoppage of production at, Gounkoto Gold Mine (Mali) will be taken into account for the purposes of this definition;

 

		(b)	the ability of the Borrower to perform its payment obligations under this Agreement; or

 

		(c)	the validity or enforceability of any Finance Document.

 

“Material
Properties” means the following properties:

 

		(a)	Loulo Gold Mine located in Mali;

 

		(b)	Gounkoto Gold Mine located in Mali;

 

		(c)	Tongon Gold Mine located in Ivory Coast; and

 

		(d)	Kibali Gold Mine located in the Democratic Republic of the Congo.

 

“Material
Subsidiary” means, at any time:

 

		(a)	a Subsidiary that owns a Material Property at any time; or

 

		(b)	a Subsidiary of the Borrower which has:

 

		(i)	operating profit calculated on the same basis as Consolidated EBIT as defined in Clause 19.1 (Financial
definitions) representing 15 per cent. or more of Consolidated EBIT as defined in Clause 19.1 (Financial definitions);
or

 

		(ii)	gross assets (excluding intra-group items) representing 15 per cent. or more of the gross assets
of the Group, calculated on a consolidated basis.

 

    	- 12-

    	 

    

  

Compliance
with the conditions set out in paragraph (b)(i) and (b)(ii) above shall be determined by reference to the most recent Compliance
Certificate supplied by the Borrower and/or the latest audited financial statements of that Subsidiary (consolidated in the case
of a Subsidiary which itself has Subsidiaries) and the latest audited consolidated financial statements of the Group.

 

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

 

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

 

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

 

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

 

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

 

“New Lender”
has the meaning given to that term in Clause ‎22 (Changes to the Lenders).

 

“Non-Group Entity”
has the meaning given to that term in Clause 19.1 (Financial definitions).

 

“Original
Financial Statements” means the audited consolidated financial statements of the Group for the financial year ended 31
December 2013.

 

“Party”
means a party to this Agreement.

 

“Permitted
Acquisitions” means acquisitions made by the Borrower in a manner which is not, or will not be, materially adverse to
the interests of the Lenders under the Finance Documents and which do not, or will not, affect the Borrower’s pro forma compliance
with each of the financial covenants set out in Clause 19 (Financial Covenants).

 

    	- 13-

    	 

    

  

“Quarter
Date” means each of 31 March, 30 June, 30 September and 31 December.

 

“Quotation
Day” means, in relation to any period for which an interest rate is to be determined two Business Days before the first
day of that period, unless market practice differs in the Relevant Interbank Market for the relevant currency, in which case the
Quotation Day for that currency will be determined by the Facility Agent in accordance with market practice in the Relevant Interbank
Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation
Day will be the last of those days).

 

“Reference
Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility
Agent at its request by the Reference Banks in relation to LIBOR, as the rate at which the relevant Reference Bank could borrow
funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then
accepting interbank offers for deposits in reasonable market size in that currency and for that period.

 

“Reference
Banks” means such two or more banks as may be appointed by the Facility Agent in consultation with the Borrower and provided
that the Facility Agent shall take the views of the Borrower into account when appointing any such banks.

 

“Related
Fund” in relation to a fund (the “first fund”), means a fund which is managed or advised by the same
investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment
adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser
of the first fund.

 

“Relevant
Interbank Market” means the London interbank market.

 

“Relevant
Period” means each period of twelve months ending on the last day of the Financial Year and each period of twelve months
ending on each Quarter Date.

 

“Repeating
Representations” means each of the representations set out in Clauses 17.1 (Status) to 17.6 (Governing law
and enforcement) (inclusive), paragraph (a) of Clause 17.12 (Financial statements) and Clause 17.13 (Pari passu ranking).

 

“Representative”
means any delegate, Facility Agent, manager, administrator, nominee, attorney, trustee or custodian.

 

“Reservations”
means

 

		(a)	the principle that equitable remedies are remedies which may be granted or refused at the discretion
of the court;

 

		(b)	the limitation of validity and/or enforcement by laws relating to bankruptcy, insolvency, liquidation,
reorganisation, court schemes, moratoria, administration and other laws generally affecting the rights of creditors;

 

		(c)	the time barring of claims under the Limitation Acts;

 

		(d)	defences of set off or counterclaim and similar principles;

 

    	- 14-

    	 

    

  

		(e)	where a party to a Finance Document is vested with a discretion or may determine a matter in its
opinion, that party may be required by a court to exercise its discretion reasonably or be required to hold that opinion on reasonable
grounds;

 

		(f)	that any provision in any Finance Document providing that any calculation or certification is to
be conclusive and binding will not be effective if such calculation or certification is fraudulent and will not necessarily prevent
judicial enquiry into the merits of any claim by any party thereto; and

 

		(g)	any other matters which are set out as qualifications as to matters of law in any legal opinion
delivered pursuant to Clause 4 (Conditions of Utilisation).

 

“Rollover
Loan” means one or more Loans:

 

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

 

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

 

		(c)	in the same currency as the maturing Loan.

 

“Sanctioned
Country” means a country or territory which is subject to country wide or territory wide Sanctions.

 

“Sanctions”
means any economic, trade or financial sanctions laws or embargoes imposed, administered, enacted or enforced from time to time
by:

 

		(a)	the US government;

 

		(b)	the United Nations;

 

		(c)	the European Union;

 

		(d)	the United Kingdom; or

 

		(e)	the respective Governmental Authorities of any of the foregoing, including without limitation,
OFAC, the US Department of State and Her Majesty’s Treasury.

 

“Sanctions
List” means any of the lists of specifically designated nationals or designated persons or entities, or sectoral sanctions
identifications or foreign sanctions evaders (or equivalent) maintained by:

 

		(a)	the US government and administered by OFAC, the US State Department, the US Department of Commerce
or the US Department of the Treasury;

 

		(b)	the United Nations Security Council;

 

		(c)	the European Union; or

 

		(d)	Her Majesty’s Treasury of the United Kingdom,

 

    	- 15-

    	 

    

  

or public announcement of a Sanctions
designation made by any of the foregoing each as amended, supplemented or substituted from time to time.

 

“Screen
Rate” means in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited
(or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages
LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page
of such other information service which publishes that rate from time to time in place of Reuters. If such page or service ceases
to be available, the Facility Agent may specify another page or service displaying the relevant rate after consultation with the
Borrower.

 

“Security”
means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement
or arrangement having a similar effect.

 

“Separate Loan”
has the meaning given to that term in Clause 6.1 (Repayment of Loans).

 

“Specified
Time” means a time determined in accordance with Schedule 7 (Timetables).

 

“Subsidiary”
means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006.

 

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

 

“Termination
Date” means the date falling on the fourth anniversary of the date of this Agreement.

 

“Total
Commitments” means the aggregate of the Commitments, being USD400,000,000 at the date of this Agreement.

 

“Trade
Instrument” means any performance bonds, advance payment bonds or documentary letters of credit issued in respect of
the obligations of any member of the Group or Non-Group Entity arising in the ordinary course of trading of that member of the
Group or Non-Group Entity.

 

“Transfer
Certificate” means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate)
or any other form agreed between the Facility Agent and the Borrower.

 

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

 

		(a)	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate;
and

 

		(b)	the date on which the Facility Agent executes the relevant Assignment Agreement or Transfer Certificate.

 

    	- 16-

    	 

    

  

“Treasury Transaction”
means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or
price.

 

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

 

“US”
means the United States of America.

 

“Utilisation”
means a utilisation of the Facility.

 

“Utilisation
Date” means the date of a Utilisation, being the date on which the relevant Loan is to be made.

 

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

 

“VAT”
means:

 

		(a)	any tax imposed in compliance with the European Union Council Directive of 28 November 2006 on
the common system of value added tax (EC Directive 2006/112); and

 

		(b)	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution
for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.

 

		1.2	Construction

 

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

 

		(i)	the “Facility Agent”, the “Arranger”, any “Finance
Party”, any “Lender”, any “Party” shall be construed so as to include its successors
in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents;

 

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

 

		(iii)	a “Finance Document” or any other agreement or instrument is a reference to
that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

		(iv)	a “group of Lenders” includes all the Lenders;

 

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

 

		(vi)	a “person” includes any individual, firm, company, corporation, government,
state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having
separate legal personality);

 

    	- 17-

    	 

    

  

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

 

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

 

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

 

		(b)	Section, Clause and Schedule headings are for ease of reference only.

 

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

 

		(d)	A Default (other than an Event of Default) is “continuing” if it has not been
remedied or waived and an Event of Default is “continuing” if it has not been waived.

 

		1.3	Currency symbols and definitions

 

“$”, “USD”
and “dollars” denote the lawful currency of the United States of America.

 

		1.4	Third Party Rights

 

		(a)	Unless expressly provided to the contrary in a Finance Document a person who is not a Party has
no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to enforce or to enjoy
the benefit of any term of this Agreement.

 

		(b)	Notwithstanding any term of any Finance Document, the consent of any person who is not a Party
is not required to rescind or vary this Agreement at any time.

 

    	- 18-

    	 

    

 

SECTION 2

THE FACILITY

 

		2.	The Facility

 

		2.1	The Facility

 

Subject to the terms of this Agreement,
the Lenders make available to the Borrower a revolving credit facility in an aggregate amount equal to the Total Commitments.

 

		2.2	Increase

 

		(a)	The Borrower may by giving prior notice to the Facility Agent by no later than the date falling
20 Business Days after the effective date of a cancellation of:

 

		(i)	the Available Commitments of a Defaulting Lender in accordance with Clause 7.7 (Right of cancellation
in relation to a Defaulting Lender); or

 

		(ii)	the Commitments of a Lender in accordance with:

 

		(A)	Clause 7.1 (Illegality); or

 

		(B)	paragraph (a) of Clause 7.6 (Right of replacement or repayment and cancellation in relation
to a single Lender),

 

request that the Total Commitments
be increased (and the Commitments shall be so increased) in an aggregate amount so cancelled as follows (and such that the Total
Commitments after such increase will not exceed the Total Commitments at the date of this Agreement):

 

		(iii)	the increased Commitments will be assumed by one or more Lenders or other banks, financial institutions,
trusts, funds or other entities (each an “Increase Lender”) selected by the Borrower (each of which shall not
be a member of the Group or any Affiliate of the members of the Group) and each of which confirms in writing (in the relevant Increase
Confirmation) its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased
Commitments which it is to assume, as if it had been an Original Lender;

 

		(iv)	the Borrower and any Increase Lender shall assume obligations towards one another and/or acquire
rights against one another as the Borrower and the Increase Lender would have assumed and/or acquired had the Increase Lender been
an Original Lender;

 

		(v)	each Increase Lender shall become a Party as a “Lender” and any Increase Lender and
each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase
Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender;

 

    	- 19-

    	 

    

 

		(vi)	the Commitments of the other Lenders shall continue in full force and effect; and

 

		(vii)	any increase in the Commitments shall take effect on the date specified by the Borrower in the
notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

 

		(b)	An increase in the Commitments relating to a Facility will only be effective on:

 

		(i)	the execution by the Facility Agent of an Increase Confirmation from the relevant Increase Lender;
and

 

		(ii)	in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase,
the Facility Agent being satisfied that the Increase Lender has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that
Increase Lender. The Facility Agent shall promptly notify the Borrower and the Increase Lender upon being so satisfied.

 

		(c)	Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt)
that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of
the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective.

 

		(d)	The Borrower shall promptly on demand pay the Facility Agent the amount of all costs and expenses
properly incurred by it and reasonable expenses (including legal fees) in connection with any increase in Commitments under this
Clause 2.2.

 

		(e)	The Increase Lender shall, on the date upon which the increase takes effect, pay to the Facility
Agent (for its own account) a fee in an amount equal to the fee which would be payable under Clause 22.3 (Assignment or transfer
fee) if the increase was a transfer pursuant to Clause 22.5 (Procedure for transfer) and if the Increase Lender was
a New Lender.

 

		(f)	The Borrower may pay to the Increase Lender a fee in the amount and at the times agreed between
the Borrower and the Increase Lender in a Fee Letter.

 

		(g)	In no event shall a Lender replaced under paragraph (a) above be required to pay or surrender to
such Increase Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

		(h)	Clause 22.4 (Limitation of responsibility of Existing Lenders) shall apply mutatis mutandis
in this Clause 2.2 in relation to an Increase Lender as if references in that Clause to:

 

		(i)	an “Existing Lender” were references to all the Lenders immediately prior to
the relevant increase;

 

    	- 20-

    	 

    

 

		(ii)	the “New Lender” were references to that “Increase Lender”;
and

 

		(iii)	a “re-transfer” and “re-assignment” were references to respectively
a “transfer” and “assignment”.

 

		2.3	Finance Parties’ rights and obligations

 

		(a)	The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance
Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance
Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

		(b)	The rights of each Finance Party under or in connection with the Finance Documents are separate
and independent rights and any debt arising under the Finance Documents to a Finance Party from the Borrower shall be a separate
and independent debt.

 

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

 

		3.	Purpose

 

		3.1	Purpose

 

The Borrower shall apply all amounts
borrowed by it under the Facility towards refinancing all amounts outstanding under the Existing Facility Agreement and, once such
amounts have been refinanced, towards its general corporate purposes including, without limitation, capital expenditure and Permitted
Acquisitions.

 

		3.2	Monitoring

 

No Finance Party is bound to monitor
or verify the application of any amount borrowed pursuant to this Agreement.

 

		4.	Conditions of Utilisation

 

		4.1	Initial conditions precedent

 

		(a)	The Borrower may not deliver a Utilisation Request unless the Facility Agent has received all of
the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Facility
Agent (acting reasonably). The Facility Agent shall notify the Borrower and the Lenders promptly upon being so satisfied.

 

		(b)	Other than to the extent that the Majority Lenders notify the Facility Agent in writing to the
contrary before the Facility Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require)
the Facility Agent to give that notification. The Facility Agent shall not be liable for any damages, costs or losses whatsoever
as a result of giving any such notification.

 

    	- 21-

    	 

    

 

		4.2	Further conditions precedent

 

		(a)	The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation)
if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

		(i)	(in the case of a Rollover Loan) no Event of Default is continuing or would result from the making
of the relevant Loan and (in the case of any other Utilisation) no Default is continuing or would result from the proposed Loan;
and

 

		(ii)	the Repeating Representations to be made by the Borrower are true in all material respects.

 

		4.3	Maximum number of Loans

 

		(a)	The Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation 11
or more Loans would be outstanding.

 

		(b)	Any Separate Loan shall not be taken into account in this Clause 4.3.

 

    	- 22-

    	 

    

 

SECTION 3

UTILISATION

 

		5.	Utilisation

 

		5.1	Delivery of a Utilisation Request

 

The Borrower may utilise the Facility
by delivery to the Facility Agent of a duly completed Utilisation Request not later than the Specified Time.

 

		5.2	Completion of a Utilisation Request

 

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

 

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

 

		(ii)	the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount);
and

 

		(iii)	the proposed Interest Period complies with Clause 9 (Interest Periods).

 

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

 

		5.3	Currency and amount

 

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

 

		(b)	The amount of the proposed Loan must be an amount which is less than or equal to the Available
Facility and which is a minimum of USD1,000,000 or, if less, the Available Facility.

 

		5.4	Lenders’ participation

 

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

 

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

 

		(c)	The Facility Agent shall determine the amount of each Loan and shall notify each Lender of the
amount of each Loan and the amount of its participation in that Loan, in each case by the Specified Time.

 

		5.5	Cancellation of Commitment

 

The Commitments which, at that time,
are unutilised shall be immediately cancelled at the end of the Availability Period.

 

    	- 23-

    	 

    

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

 

		6.	Repayment

 

		6.1	Repayment of Loans

 

		(a)	Subject to paragraph (c) below the Borrower shall repay each Loan on the last day of its Interest
Period. No Loan may be outstanding after the Termination Date.

 

		(b)	Without prejudice to the Borrower’s obligation under paragraph (a) above, if one or more
Loans are to be made available to the Borrower:

 

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

 

		(ii)	in whole or in part for the purpose of refinancing the maturing Loan,

 

the aggregate amount of the new Loans
shall, unless the Borrower notifies the Facility Agent to the contrary in its Utilisation Request, be treated as if applied in
or towards repayment of the maturing Loan so that:

 

		(A)	if the amount of the maturing Loan exceeds the aggregate amount of the new Loans:

 

		(1)	the Borrower will only be required to pay an amount in cash in accordance with Clause ‎27.1
(Payments to the Facility Agent) in the relevant currency equal to that excess; and

 

		(2)	each Lender’s participation (if any) in the new Loans shall be treated as having been made
available and applied by the Borrower in or towards repayment of that Lender’s participation (if any) in the maturing Loan
and that Lender will not be required to make its participation in the new Loans available in cash in accordance with Clause 27.1
(Payments to the Facility Agent); and

 

		(B)	if the amount of the maturing Loan is equal to or less than the aggregate amount of the new Loans:

 

		(1)	the Borrower will not be required to make any payment in accordance with Clause 27.1 (Payments
to the Facility Agent); and

 

		(2)	each Lender will be required to make its participation in the new Loans available in cash in accordance
with Clause 27.1 (Payments to the Facility Agent) only to the extent that its participation (if any) in the new Loans exceeds
that Lender’s participation (if any) in the maturing Loan and the remainder of that Lender’s

 

    	- 24-

    	 

    

 

			participation in the new Loans shall be treated as having been made available and applied by the
Borrower in or towards repayment of that Lender’s participation in the maturing Loan.

 

		(c)	At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations
of that Lender in the Loans then outstanding will be automatically extended to the Termination Date and will be treated as separate
Loans (the “Separate Loans”).

 

		(d)	If the Borrower makes a prepayment of a Loan pursuant to Clause ‎‎7.5
(Voluntary prepayment of Loans), the Borrower may prepay the Separate Loan by giving not less than five Business Days’
prior notice to the Facility Agent. The Facility Agent will forward a copy of a prepayment notice received in accordance with this
paragraph (d) to the Defaulting Lender concerned as soon as practicable on receipt.

 

		(e)	Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by
the Borrower by the time and date specified by the Facility Agent (acting reasonably) and will be payable by the Borrower to the
Facility Agent (for the account of that Defaulting Lender) on the last day of each Interest Period of that Loan.

 

		(f)	The terms of this Agreement relating to Loans generally shall continue to apply to Separate Loans
other than to the extent inconsistent with paragraphs (c) to (e) above, in which case those paragraphs shall prevail in respect
of any Separate Loan.

 

		7.	Prepayment and Cancellation

 

		7.1	Illegality

 

If, in any applicable jurisdiction,
it becomes unlawful for any Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in any Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so:

 

		(a)	that Lender shall promptly notify the Facility Agent upon becoming aware of that event;

 

		(b)	upon the Facility Agent notifying the Borrower, the Commitment of that Lender will be immediately
cancelled; and

 

		(c)	(if the Lender so requires) the Borrower shall repay that Lender’s participation in the Loans
made to that Borrower on the last day of the Interest Period for each Loan occurring after the Facility Agent has notified the
Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Facility Agent (being no earlier than
the last day of any applicable grace period permitted by law).

 

    	- 25-

    	 

    

  

		7.2	Sanctions

 

If any representation
or statement made or deemed to be made pursuant to Clause 17.16 (Sanctions) is or proves to have been incorrect or misleading
in any material respect when made or deemed to be made, or the Borrower does not comply with Clause 20.17 (Sanctions):

 

		(a)	a Lender may promptly notify the Facility Agent upon becoming aware of that event;

 

		(b)	upon the Facility Agent notifying the Borrower, the Commitment of that Lender will be immediately
cancelled; and

 

		(c)	(if the Lender so requires) the Borrower shall repay that Lender’s participation in the Loans
made to that Borrower on the last day of the Interest Period for each Loan occurring after the Facility Agent has notified the
Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Facility Agent (being no earlier than
the last day of any applicable grace period permitted by law).

 

		7.3	Change of control

 

		(a)	If a Change of Control occurs:

 

		(i)	subject to applicable laws and regulations and the requirements or practice of any applicable stock
exchange, the Borrower shall promptly notify the Facility Agent upon becoming aware of that event;

 

		(ii)	a Lender shall not be obliged to fund a Utilisation;

 

		(iii)	if a Lender so requires and notifies the Facility Agent within five Business Days of the Borrower
notifying the Facility Agent of the event, the Facility Agent shall, by not less than five Business Days notice to the Borrower,
cancel the Commitment of that Lender and declare the participation of that Lender in all outstanding Loans, together with accrued
interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Commitment of that
Lender will be cancelled and all such outstanding amounts will become immediately due and payable.

 

		(b)	For the purpose of paragraph (a) above:

 

		(i)	“Change of Control” means any person or group of persons acting in concert gains
the right to hold more than 50% of the issued share capital of the Borrower, gains the right to cast more than 50% of the voting
rights of shareholders of the Borrower or gains the right to determine the composition of the board of directors of the Borrower;
and

 

		(ii)	“acting in concert” means, a group of persons who, pursuant to an agreement
or understanding (whether formal or informal), actively co-operate, through the acquisition by any of them, either directly or

 

    	- 26-

    	 

    

  

			indirectly, of shares in the Borrower, to obtain or consolidate control of the Borrower.

 

		7.4	Voluntary cancellation

 

The Borrower may, if it gives the
Facility Agent not less than five Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice,
cancel the whole or any part (being a minimum amount of USD25,000,000 and integral multiples of USD1,000,000) of the Available
Facility. Any cancellation under this Clause 7.4 shall reduce the Commitments of the Lenders rateably.

 

		7.5	Voluntary prepayment of Loans

 

The Borrower may, if it gives the
Facility Agent not less than five Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice,
prepay the whole or any part of a Loan (but if in part, an amount that reduces the amount of the Loan by a minimum amount of USD10,000,000
and integral multiples of USD1,000,000). Any prepayment of a Loan pursuant to this Clause 7.5 shall be applied pro rata to each
Lender’s participation in that Loan.

 

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

 

		(a)	If:

 

		(i)	any sum payable to any Lender by the Borrower is required to be increased under paragraph (c) of
Clause 12.2 (Tax gross-up); or

 

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

 

the Borrower may, whilst the circumstance
giving rise to the requirement for that increase or indemnification continues, give the Facility Agent notice of cancellation of
the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loans or give
the Facility Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

 

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

 

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

 

		(d)	The Borrower may, in the circumstances set out in paragraph (a) above, on not less than five Business
Days’ prior notice to the Facility Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent
permitted by law, that Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of
its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other

 

    	- 27-

    	 

    

 

			entity selected by the Borrower which confirms its willingness to assume and does assume all the
obligations of the transferring Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash
or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender’s participation
in the outstanding Loans and all accrued interest (to the extent that the Facility Agent has not given a notification under Clause
22.9 (Pro rata interest settlement), Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

		(e)	The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

 

		(i)	the Borrower shall have no right to replace the Facility Agent;

 

		(ii)	neither the Facility Agent nor any Lender shall have any obligation to find a replacement Lender;

 

		(iii)	in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender
any of the fees received by such Lender pursuant to the Finance Documents; and

 

		(iv)	the Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (d)
above once it is satisfied that it has complied with all necessary “know your customer” or other similar checks under
all applicable laws and regulations in relation to that transfer.

 

		(f)	A Lender shall perform the checks described in paragraph (e)(iv) above as soon as reasonably practicable
following delivery of a notice referred to in paragraph (d) above and shall notify the Facility Agent and the Borrower when it
is satisfied that it has complied with those checks.

 

		7.7	Right of cancellation in relation to a Defaulting Lender

 

		(a)	If any Lender becomes a Defaulting Lender, the Borrower may, at any time whilst the Lender continues
to be a Defaulting Lender, give the Facility Agent five Business Days’ notice of cancellation of the Available Commitment
of that Lender.

 

		(b)	On the notice referred to in paragraph (a) above becoming effective, the Available Commitment of
the Defaulting Lender shall immediately be reduced to zero.

 

		(c)	The Facility Agent shall, as soon as practicable after receipt of a notice referred to in paragraph
(a) above, notify all the Lenders.

 

		7.8	Restrictions

 

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

 

    	- 28-

    	 

    

 

		(b)	Any prepayment under this Agreement shall be made together with accrued interest on the amount
prepaid and, subject to any Break Costs, without premium or penalty.

 

		(c)	Unless a contrary indication appears in this Agreement, any part of the Facility which is prepaid
or repaid may be reborrowed in accordance with the terms of this Agreement.

 

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

 

		(e)	Subject to Clause 2.2 (Increase), no amount of the Total Commitments cancelled under this
Agreement may be subsequently reinstated.

 

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

 

		(g)	If all or part of a Loan is repaid or prepaid and is not available for redrawing (other than by
operation of Clause 4.2 (Further conditions precedent)), an amount of the Commitments (equal to the amount of the Loan which
is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment. Any cancellation under this paragraph
(g) shall reduce the Commitments of the Lenders rateably.

 

    	- 29-

    	 

    

 

SECTION 5

COSTS OF UTILISATION

 

		8.	Interest

 

		8.1	Calculation of interest

 

The rate of interest on each Loan
for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

 

		(a)	Margin; and

 

		(b)	LIBOR.

 

		8.2	Payment of interest

 

		(a)	The Borrower shall pay accrued interest on each Loan on the last day of each Interest Period (and,
if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest
Period).

 

		(b)	If the Compliance Certificate received by the Facility Agent which relates to the relevant Annual
Financial Statements shows that a higher or lower Margin should have applied during a certain period, then the interest payment
to be made on the last day of the then current Interest Period shall be increased or reduced by any amounts necessary to put the
Facility Agent and the Lenders or the Borrower (as the case may be) in the position which they should have been in had the correct
Margin been applied during the relevant Interest Period.

 

		8.3	Default interest

 

		(a)	If the Borrower fails to pay any amount payable by it under a Finance Document on its due date,
interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment)
at a rate which, subject to paragraph (b) below, is one per cent per annum higher than the rate which would have been payable if
the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive
Interest Periods, each of a duration selected by the Facility Agent (acting reasonably). Any interest accruing under this Clause
8.3 shall be immediately payable by the Borrower on demand by the Facility Agent.

 

		(b)	If any overdue amount consists of all or part of a Loan which became due on a day which was not
the last day of an Interest Period relating to that Loan:

 

		(i)	the first Interest Period for that overdue amount shall have a duration equal to the unexpired
portion of the current Interest Period relating to that Loan; and

 

		(ii)	the rate of interest applying to the overdue amount during that first Interest Period shall be
one per cent. per annum higher than the rate which would have applied if the overdue amount had not become due.

 

    	- 30-

    	 

    

 

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

 

		8.4	Notification of rates of interest

 

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

 

		9.	Interest Periods

 

		9.1	Selection of Interest Periods

 

The Borrower may select an Interest
Period for a Loan in the Utilisation Request for that Loan.

 

		(a)	Subject to this Clause 9, the Borrower may select an Interest Period of one, three or six Months
or any other period agreed between the Borrower and the Facility Agent (acting on the instructions of all the Lenders).

 

		(b)	An Interest Period for a Loan shall not extend beyond the Termination Date.

 

		(c)	Each Interest Period for a Loan shall start on the Utilisation Date for that Loan.

 

		(d)	A Loan has one Interest Period only.

 

		9.2	Non-Business Days

 

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

 

		10.	Changes to the Calculation of Interest

 

		10.1	Absence of quotations

 

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

 

		10.2	Market disruption

 

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

 

		(i)	the Margin; and

 

		(ii)	the rate notified to the Facility Agent by that Lender as soon as practicable and in any event
before interest is due to be paid in respect

 

    	- 31-

    	 

    

 

			of that Interest Period, to be that which expresses as a percentage rate per annum the cost to
that Lender of funding its participation in that Loan from whatever source it may reasonably select.

 

		(b)	In this Agreement “Market Disruption Event” means:

 

		(i)	at or about noon on the Quotation Day for the relevant Interest Period LIBOR is to be determined
by reference to the Reference Banks and none or only one of the Reference Banks supplies a rate to the Facility Agent to determine
LIBOR for the relevant currency and Interest Period; or

 

		(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Facility
Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 50 per cent. of that Loan) that the
cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR.

 

		10.3	Alternative basis of interest or funding

 

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

 

		(b)	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all
the Lenders and the Borrower, be binding on all Parties, provided, however, that if no alternative basis is agreed pursuant to
paragraph (a) above, the rate of interest notified pursuant to Clause 10.2(a)(ii) (Market disruption) shall continue to
apply.

 

		10.4	Break Costs

 

		(a)	The Borrower shall, within five Business Days of demand by a Finance Party, pay to that Finance
Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a day other than the
last day of an Interest Period for that Loan or Unpaid Sum.

 

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

 

		11.	Fees

 

		11.1	Commitment fee

 

		(a)	The Borrower shall pay to the Facility Agent (for the account of each Lender) a fee in dollars
on that Lender’s Available Commitment for the Availability Period, such fee to be calculated:

 

		(i)	prior to the first reset date (as defined below), at the rate of 0.375 per cent.; and

 

    	- 32-

    	 

    

 

		(ii)	thereafter, in accordance with the table below:

 

	Debt Cover	 	Commitment Fee
    
 (%)	 
	Less than or equal to 1.00:1.	 	 	0.375	 
	Greater than 1.00:1 but less than or equal to 2.00:1	 	 	0.4375	 
	Greater than 2.00:1	 	 	0.50	 

 

		(b)	The accrued commitment fee is payable on the last day of each successive period of three Months
which ends during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled
amount of the relevant Lender’s Commitment at the time the cancellation is effective.

 

		(c)	No commitment fee is payable to the Facility Agent (for the account of a Lender) on any Available
Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

 

		(d)	For the purposes of this Clause 11.1, the “reset date” means the date which
is five Business Days after receipt by the Facility Agent of the Compliance Certificate for that Relevant Period pursuant to Clause
‎18.2 (Compliance Certificate).

 

		11.2	Up-front fee

 

The
Borrower shall pay to the Facility Agent (for the account of the Lenders) an up-front fee in the amount and at the times agreed
in a Fee Letter.

 

		11.3	Agency fee

 

The Borrower shall pay to the Facility
Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

    	- 33-

    	 

    

 

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

 

		12.	Tax Gross Up and Indemnities

 

		12.1	Definitions

 

		(a)	In this Agreement:

 

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

 

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

 

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

 

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

 

		(b)	Unless a contrary indication appears, in this Clause 12 a reference to “determines”
or “determined” means a determination made in the absolute discretion of the person making the determination.

 

		12.2	Tax gross-up

 

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

 

		(b)	The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there
is any change in the rate or the basis of a Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender shall notify
the Facility Agent on becoming so aware in respect of a payment payable to that Lender. If the Facility Agent receives such notification
from a Lender it shall notify the Borrower.

 

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

 

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

 

		(e)	Within thirty days of making either a Tax Deduction or any payment required in connection with
that Tax Deduction, the Borrower making that Tax

 

    	- 34-

    	 

    

  

			Deduction shall deliver to the Facility Agent for the Finance Party entitled to the payment evidence
reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid
to the relevant taxing authority.

 

		12.3	Tax indemnity

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		(B)	relates to a FATCA Deduction required to be made by a Party.

 

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

 

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

 

		12.4	Tax Credit

 

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

 

		(a)	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that
Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

 

    	- 35-

    	 

    

  

		(b)	that Finance Party has obtained and utilised that Tax Credit,

 

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

 

		12.5	Stamp taxes

 

The Borrower shall pay and, within
five Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation
to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document, provided that this Clause 12.5
shall not apply in respect of any stamp duty registration and other similar Taxes which are payable in respect of an assignment,
transfer or other alienation of any kind by a Lender of any of its rights and/or obligations under a Finance Document.

 

		12.6	VAT

 

		(a)	All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which
(in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which
is chargeable on that supply and, accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made
by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant tax authority
for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for
such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice
to that Party).

 

		(b)	If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”)
to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient
(the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration
for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

 

		(i)	(where the Supplier is the person required to account to the relevant tax authority for the VAT)
the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount
of the VAT. The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit
or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT
chargeable on that supply; and

 

		(ii)	(where the Recipient is the person required to account to the relevant tax authority for the VAT)
the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable
on that supply but only to the extent that

 

    	- 36-

    	 

    

  

			the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant
tax authority in respect of that VAT.

 

		(c)	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost
or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or
expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it
is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

		(d)	Any reference in this Clause 12.6 to any Party shall, at any time when such Party is treated as
a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the
representative member of such group at such time (the term “representative member” to have the same meaning as in the
Value Added Tax Act 1994).

 

		(e)	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably
requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration
and such other information as is reasonably requested in connection with such Finance Party’s VAT reporting requirements
in relation to such supply.

 

		12.7	FATCA Information

 

		(a)	Subject to paragraph (c) below, each Party shall, within ten Business Days of a reasonable request
by another Party:

 

		(i)	confirm to that other Party whether it is:

 

		(A)	a FATCA Exempt Party; or

 

		(B)	not a FATCA Exempt Party;

 

		(ii)	supply to that other Party such forms, documentation and other information relating to its status
under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA;

 

		(iii)	supply to that other Party such forms, documentation and other information relating to its status
as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation,
or exchange of information regime.

 

		(b)	If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt
Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other
Party reasonably promptly.

 

		(c)	Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above
shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

 

    	- 37-

    	 

    

 

		(i)	any law or regulation;

 

		(ii)	any fiduciary duty; or

 

		(iii)	any duty of confidentiality.

 

		(d)	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation
or other information requested in accordance with paragraph (a)(i) or (ii) above (including, for the avoidance of doubt, where
paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them)
as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation
or other information.

 

		12.8	FATCA Deduction

 

		(a)	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required
in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such
a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

		(b)	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there
is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom it is making the payment and, in addition,
shall notify the Borrower and the Facility Agent and the Facility Agent shall notify the other Finance Parties.

 

		13.	Increased Costs

 

		13.1	Increased costs

 

		(a)	Subject to Clause 13.3 (Exceptions) the Borrower shall, within five Business Days of a demand
by the Facility Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party
or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application
of) any law or regulation; (ii) compliance with any law or regulation made after the date of this Agreement; or (iii) the implementation
or application of, or compliance with, Basel III or CRD IV, or any law or regulation that implements or applies Basel III or CRD
IV.

 

		(b)	In this Agreement

 

		(i)	“Increased Costs” means:

 

		(A)	a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s)
overall capital including, without limitation, as a result of any reduction in the rate of return on capital brought about by more
capital being required to be allocated by such Finance Party in respect of the Facility;

 

    	- 38-

    	 

    

 

		(B)	an additional or increased cost; or

 

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

 

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

 

		(ii)	“Basel III” means:

 

		(A)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel
III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework
for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical
capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or
restated;

 

		(B)	the rules for global systemically important banks contained in “Global systemically important
banks: assessment methodology and the additional loss absorbency requirement – Rules text” published by the Basel Committee
on Banking Supervision in November 2011, as amended, supplemented or restated; and

 

		(C)	any further guidance or standards published by the Basel Committee on Banking Supervision relating
to “Basel III”.

 

		(iii)	“CRD IV” means:

 

		(A)	Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential
requirements for credit institutions and investment firms; and

 

		(B)	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to
the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive
2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

 

		13.2	Increased cost claims

 

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

 

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

 

    	- 39-

    	 

    

 

		13.3	Exceptions

 

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

 

		(i)	attributable to a Tax Deduction required by law to be made by the Borrower;

 

		(ii)	attributable to a FATCA Deduction required to be made by a Party;

 

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

 

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

 

		(v)	attributable to the implementation or application of or compliance with the “International
Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking
Supervision in June 2004 in the form existing at the date of this Agreement (“Basel II”) or any other law or
regulation which implements Basel II (whether such implementation, application or compliance is by a government, a regulator, the
Lender or any of its Affiliates); or

 

		(vi)	attributable to any Bank Levy (or any payment attributable to, or liability arising as a consequence
of, a Bank Levy).

 

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

 

		14.	Other Indemnities

 

		14.1	Currency indemnity

 

		(a)	Without prejudice to Clause 27.9 (Currency of account), if any sum due from the Borrower
under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has
to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency
(the “Second Currency”) for the purpose of:

 

		(i)	making or filing a claim or proof against the Borrower; or

 

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

 

the Borrower shall as an independent
obligation, within five Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert
that Sum

 

    	- 40-

    	 

    

 

from the First Currency into the Second
Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

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

 

		14.2	Other indemnities

 

The Borrower shall, within five Business
Days of demand (which demand must be accompanied by reasonable details and calculations of the amount demanded), indemnify each
Finance Party against any cost, loss or liability incurred by that Finance Party acting reasonably as a result of:

 

		(a)	the occurrence of any Event of Default;

 

		(b)	a failure by the Borrower to pay any amount due under a Finance Document on its due date, including
without limitation, any cost, loss or liability arising as a result of Clause 26 (Sharing among the Finance Parties);

 

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

 

		(d)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by
the Borrower.

 

		14.3	Indemnity to the Facility Agent

 

		(a)	The Borrower shall promptly indemnify the Facility Agent against:

 

		(i)	any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a result of:

 

		(A)	investigating any event which it reasonably believes is a Default provided that if that investigation
shows that no Event of Default had occurred, then such costs, loss and liability shall be for the account of the Lenders;

 

		(B)	entering into or performing any foreign exchange contract for the purposes of paragraph (b) of
Clause 27.10 (Change of currency);

 

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

 

		(D)	instructing lawyers, accountants tax advisers, surveyors or other professional advisers or experts
as permitted under this Agreement; and

 

    	- 41-

    	 

    

  

		(ii)	any cost, loss or liability incurred by the Facility Agent acting reasonably (otherwise than by
reason of the Facility Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant
to Clause 27.11 (Disruption to Payment Systems etc.) notwithstanding the Facility Agent’s negligence, gross negligence
or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) in acting as
Facility Agent under the Finance Documents.

 

		(b)	The indemnity given by the Borrower under or in connection with this Clause is a continuing obligation,
independent of the Borrower’s other obligations under or in connection with this Agreement or any other document and survives
after this Agreement is terminated. It is not necessary for a person to pay an amount or incur any expense before enforcing an
indemnity under or in connection with this Agreement or any other document.

 

		15.	Mitigation by the Lenders

 

		15.1	Mitigation

 

		(a)	Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate
any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant
to, any of Clause 7.1 (Illegality), Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs)
including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility
Office.

 

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

 

		15.2	Limitation of liability

 

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

 

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

 

		16.	Costs and Expenses

 

		16.1	Transaction expenses

 

The Borrower shall promptly on demand
pay the Facility Agent and the Arranger the amount of all third party costs and expenses (including legal fees which shall be subject
to the arrangements, parameters and assumptions set out in the agreed proposal) reasonably incurred by any of them in connection
with the negotiation, preparation, printing, execution and syndication of:

 

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

 

    	- 42-

    	 

    

 

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

 

		16.2	Amendment costs

 

If (a) the Borrower requests an amendment,
waiver or consent or (b) an amendment is required pursuant to Clause 27.10 (Change of currency), the Borrower shall, within
five Business Days of demand, reimburse the Facility Agent for the amount of all costs and expenses (including legal fees) reasonably
and properly incurred by the Facility Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

		16.3	Enforcement costs

 

The Borrower shall, within five Business
Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance
Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

 

    	- 43-

    	 

    

 

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS
OF DEFAULT

 

		17.	Representations

 

The Borrower makes the representations
and warranties set out in this Clause 17 to each Finance Party on the date of this Agreement.

 

		17.1	Status

 

		(a)	It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of
incorporation.

 

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

 

		17.2	Binding obligations

 

The obligations expressed to be assumed
by it in each Finance Document are, subject to the Reservations and any general principles of law limiting its obligations which
are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation), legal, valid,
binding and enforceable obligations.

 

		17.3	Non-conflict with other obligations

 

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

 

		(a)	any law or regulation applicable to it in any material respect;

 

		(b)	its or any of its Material Subsidiaries’ constitutional documents; or

 

		(c)	any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of
its Subsidiaries’ assets in a manner which has, or could be reasonably likely to have, a Material Adverse Effect.

 

		17.4	Power and authority

 

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

 

		17.5	Validity and admissibility in evidence

 

All Authorisations required or desirable:

 

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

 

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

 

    	- 44-

    	 

    

 

have been obtained or effected and
are (subject to the Reservations) in full force and effect.

 

		17.6	Governing law and enforcement

 

		(a)	The choice of English law as the governing law of the Finance Documents will (subject to the Reservations)
be recognised and enforced in its jurisdiction of incorporation.

 

		(b)	Any judgment obtained in England in relation to a Finance Document will (subject to the Reservations
and to compliance with any rules for the recognition and enforcement of judgments in the relevant jurisdiction) be recognised and
enforced in its jurisdiction of incorporation.

 

		17.7	Insolvency

 

No:

 

		(a)	corporate action, legal proceeding or other procedure or step described in Clause 21.7 (Insolvency
proceedings); or

 

		(b)	creditors’ process described in Clause 21.8 (Creditors’ process),

 

has been taken or, to the knowledge
of the Borrower having made due and careful enquiry, threatened in relation to the Borrower or a Material Subsidiary; and none
of the circumstances described in Clause 21.6 (Insolvency) applies to the Borrower or a Material Subsidiary.

 

		17.8	Deduction of Tax

 

It is not required to make any Tax
Deduction (as defined in Clause 12.1 (Definitions)) from any payment it may make under any Finance Document.

 

		17.9	No filing or stamp taxes

 

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

 

		17.10	No default

 

		(a)	No Event of Default is continuing or might reasonably be expected to result from the making of
any Utilisation.

 

		(b)	No other event or circumstance is outstanding which constitutes a default under any other agreement
or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are
subject which has, or could be reasonably likely to have, a Material Adverse Effect.

 

    	- 45-

    	 

    

 

		17.11	No misleading information

 

		(a)	Any factual information provided by the Borrower for the purposes of the Information Memorandum
was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.

 

		(b)	The financial projections contained in the Information Memorandum have been prepared on the basis
of recent historical information and on the basis of reasonable assumptions (it being acknowledged by the Finance Parties that
financial projections and forecasts are subject to uncertainties and contingencies and no representation or warranty is given that
such financial projections or forecasts will be realised).

 

		(c)	Nothing has occurred or been omitted from the Information Memorandum and no information has been
given or withheld that results in the information contained in the Information Memorandum being untrue or misleading in any material
respect.

 

		17.12	Financial statements

 

		(a)	Its audited financial statements most recently delivered to the Facility Agent:

 

		(i)	were prepared in accordance with GAAP consistently applied; and

 

		(ii)	fairly represent its financial condition and operations (consolidated in the case of the Borrower)
during the relevant financial year.

 

		(b)	There has been no material adverse change in its business or financial condition (or the business
or consolidated financial condition of the Group, in the case of the Borrower) in the period from the date of the Original Financial
Statements to the date of this Agreement.

 

		17.13	Pari passu ranking

 

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

 

		17.14	No proceedings pending or threatened

 

No litigation, arbitration or administrative
proceedings of or before any court, arbitral body or agency which, is reasonably likely to be adversely determined and if adversely
determined, has, or could be reasonably likely to have, a Material Adverse Effect have (to the best of its knowledge and belief
having made due and careful enquiry) been started or threatened against it or any of its Subsidiaries.

 

		17.15	No breach of laws

 

		(a)	It has not (and none of its Subsidiaries has) breached any law or regulation which breach has or
is reasonably likely to have a Material Adverse Effect.

 

    	- 46-

    	 

    

  

		(b)	No labour disputes (other than any labour disputes disclosed in writing to the Facility Agent prior
to the date of this Agreement) are current or, to the best of its knowledge and belief (having made due and careful enquiry), threatened
against any member of the Group which have or are reasonably likely to have a Material Adverse Effect.

 

		17.16	Sanctions

 

Neither the Borrower nor any member
of the Group nor any director, officer, employee, or Affiliate of the Borrower or any member of the Group:

 

		(a)	is using or will use the proceeds of the Facility for the purpose of financing, facilitating or
making funds available directly or indirectly to any person or entity (whether or not related to any member of the Group) which,
at the time of such financing or provision of funds, is listed on a Sanctions List (or is owned or controlled by a person or entity
listed on a Sanctions List), or otherwise targeted under Sanctions or located in a Sanctioned Country, in each case to the extent
such financing or provision of funds would, to the knowledge (having made due and careful inquiry) of the Borrower or such other
member of the Group, be prohibited by Sanctions or would otherwise cause any Finance Party or member of the Group to be in breach
of Sanctions;

 

		(b)	is knowingly (having made due and careful inquiry) contributing or will contribute or otherwise
make available the proceeds of the Facility to any other person or entity (whether or not related to any member of the Group) for
the purpose of financing the activities or business of or with any person or entity which, at the time of such financing, is listed
on a Sanctions List (or is owned or controlled by a person or entity listed on a Sanctions List) or located in a Sanctioned Country
(to the extent such contribution or provision of proceeds would be prohibited by Sanctions to the knowledge (having made due and
careful inquiry) of the Borrower or such other member of the Group, or would otherwise cause any Finance Party or member of the
Group, to be in breach of Sanctions);

 

		(c)	to the best of the knowledge and belief of the Borrower (having made due and careful enquiry):

 

		(i)	is or is owned or controlled by a person that has been or is targeted under any Sanctions or otherwise
acting on behalf or at the direction of such a person; or

 

		(ii)	is located, organised or resident in a Sanctioned Country or acting on behalf or at the direction
of a person located in or organised under the laws of a Sanctioned Country; or

 

		(iii)	has violated or is violating any applicable Sanctions (together a Restricted Person); and

 

		(d)	is or ever has been subject to any claim, proceeding, formal notice or investigation with respect
to Sanctions,

 

    	- 47-

    	 

    

  

in each case, other than as may be
permitted, licensed or otherwise authorised by the US government, the United Nations, the European Union, the United Kingdom or
the respective Governmental Authorities of any of the foregoing.

 

		17.17	Taxation

 

		(a)	It is not (and none of its Subsidiaries is) overdue in the filing of any Tax returns and it is
not (and none of its Subsidiaries is) overdue in the payment of any amount in respect of Tax where such overdue filing or payment
has, or could be reasonably likely to have, a Material Adverse Effect.

 

		(b)	It is resident for Tax purposes only in its jurisdiction of incorporation.

 

		17.18	Group Structure Chart

 

The Group Structure Chart is true,
complete and accurate in all material respects.

 

		17.19	Repetition

 

The Repeating Representations are
deemed to be made by the Borrower by reference to the facts and circumstances then existing on the date of each Utilisation Request
and the first day of each Interest Period.

 

		18.	Information Undertakings

 

The undertakings in this Clause 18
remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment
is in force.

 

In this Clause 18:

 

“Annual Financial Statements”
means the financial statements for a Financial Year delivered pursuant to paragraph (a) of Clause 18.1 (Financial statements).

 

		18.1	Financial statements

 

The Borrower shall supply or make
available to the Facility Agent one copy for each Lender of the following:

 

		(a)	as soon as the same become available, but in any event within 120 days after the end of each of
its Financial Years, its audited consolidated financial statements for that Financial Year;

 

		(b)	as soon as the same become available, but in any event within 60 days after the end of each Financial
Quarter of each of its Financial Years, its consolidated unaudited financial statements for that Financial Quarter; and

 

		(c)	as soon as reasonably practicable, but in any event within 60 days after they have been approved
by the board of directors of the Borrower, the annual

 

    	- 48-

    	 

    

  

			budget of the Group and (if available) the Life of Mine Plan in respect of each Material Property.

 

		18.2	Compliance Certificate

 

		(a)	The Borrower shall supply to the Facility Agent, with each set of financial statements delivered
pursuant to paragraph (a) or (b) of Clause 18.1 (Financial statements), a Compliance Certificate setting out (in reasonable
detail) computations as to compliance with Clause 19 (Financial Covenants) as at the date as at which those financial statements
were drawn up.

 

		(b)	Each Compliance Certificate shall be signed by one director of the Borrower.

 

		18.3	Requirements as to financial statements

 

		(a)	The Borrower shall procure that each set of financial statements of the Borrower delivered pursuant
to Clause 18.1 (Financial statements) is prepared using GAAP, accounting practices and financial reference periods consistent
with those applied in the preparation of the Original Financial Statements for the Borrower 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
(including a change to the Financial Year) and its auditors deliver to the Facility Agent:

 

		(i)	a description of any change necessary for those financial statements to reflect the GAAP, accounting
practices and reference periods upon which the Borrower’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 Borrower’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.

 

		18.4	Information: miscellaneous

 

Subject to Clause 18.6 (Use of
websites), the Borrower shall supply or make available to the Facility Agent (with one copy of each document for each Lender,
if the Facility Agent so requests):

 

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

 

		(b)	promptly upon becoming aware of them, the details of any material litigation, arbitration or administrative
proceedings which are current, threatened or

 

    	- 49-

    	 

    

  

			pending against any member of the Group which is not frivolous or vexatious and is discharged,
stayed or dismissed within 21 days of commencement;

 

		(c)	promptly upon becoming aware of them, the details of the circumstances relating to, and the potential
impact on the Group of, the closure of, or stoppage of production at, or inability to sell the output of production from, any Material
Property for a period of more than 60 days; and

 

		(d)	promptly, such further information as any Finance Party reasonably believes is material to the
financial condition, business and operations of the Borrower as any Finance Party (through the Facility Agent) may reasonably request.

 

		18.5	Notification of default

 

		(a)	The Borrower shall 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 upon a request by the Facility Agent, the Borrower shall supply to the Facility Agent
a certificate signed by one director or a duly authorised senior manager on its behalf certifying that no Default is continuing
(or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

 

		18.6	Use of websites

 

		(a)	The Borrower may satisfy its obligation under this Agreement to deliver any information in relation
to those Lenders ( the “Website Lenders”) who accept this method of communication by posting this information
onto an electronic website designated by the Borrower and the Facility Agent (the “Designated Website”) if:

 

		(i)	the Facility Agent expressly agrees (after consultation with each of the Lenders) that it will
accept communication of the information by this method;

 

		(ii)	both the Borrower and the Facility Agent are aware of the address of and any relevant password
specifications for the Designated Website; and

 

		(iii)	the information is in a format previously agreed between the Borrower and the Facility Agent.

 

If any Lender does not agree to the
delivery of information electronically then the Facility Agent shall notify the Borrower accordingly and the Borrower shall supply
or make available the information to the Facility Agent with at least one copy in paper form of any information required to be
provided by it.

 

		(b)	The Facility Agent shall supply each Website Lender with the address of and any relevant password
specifications for the Designated Website following designation of that website by the Borrower and the Facility Agent.

 

    	- 50-

    	 

    

  

		(c)	The Borrower shall promptly upon becoming aware of its occurrence notify the Facility Agent if:

 

		(i)	the Designated Website cannot be accessed due to technical failure;

 

		(ii)	the password specifications for the Designated Website change;

 

		(iii)	any new information which is required to be provided under this Agreement is posted onto the Designated
Website;

 

		(iv)	any existing information which has been provided under this Agreement and posted onto the Designated
Website is amended; or

 

		(v)	the Borrower becomes aware that the Designated Website or any information posted onto the Designated
Website is or has been infected by any electronic virus or similar software.

 

If the Borrower notifies the Facility
Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Borrower under this Agreement after
the date of that notice shall be supplied in paper form unless and until the Facility Agent and each Website Lender is satisfied
that the circumstances giving rise to the notification are no longer continuing.

 

		(d)	Any Website Lender may request, through the Facility Agent, one paper copy of any information required
to be provided under this Agreement which is posted onto the Designated Website. The Borrower shall comply with any such request
within ten Business Days.

 

		18.7	“Know your customer” checks

 

		(a)	If:

 

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

 

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

 

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

 

obliges the Facility Agent or any Lender
(or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly
upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as
is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case
of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Facility Agent, such
Lender or, in the

 

    	- 51-

    	 

    

  

case of the event described in paragraph
(iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

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

 

		19.	Financial Covenants

 

		19.1	Financial definitions

 

In this Clause
19:

 

“Consolidated
EBIT” means, in respect of any Relevant Period, the consolidated operating profit of the Group before taxation (excluding
the results from discontinued operations):

 

		(a)	before deducting any Finance Charges;

 

		(b)	not including any accrued interest owing to any member of the Group;

 

		(c)	before taking into account any Exceptional Items;

 

		(d)	after deducting the amount of any profit (or adding back the amount of any loss) of any member
of the Group which is attributable to minority interests;

 

		(e)	plus or minus the Group’s share of the profits or losses (after finance costs and tax) of
Non-Group Entities;

 

		(f)	before taking into account any gain or loss arising from an upward or downward revaluation of any
other asset at any time after 31 December 2013;

 

		(g)	excluding any costs or provisions relating to any share option or similar scheme,

 

in each case, to the extent added,
deducted or taken into account, as the case may be, for the purposes of determining operating profits of the Group before taxation.

 

“Consolidated
EBITDA” means, in respect of any Relevant Period, Consolidated EBIT for that Relevant Period after adding back amounts
charged in that Relevant Period in respect of the amortisation of intangible fixed assets and the depreciation of tangible fixed
assets:

 

		(a)	including the Group’s share of the operating profit (and any loss) before taxation (calculated
on the same basis as Consolidated EBIT) of (i) a member of the Group (including for this purpose any Non-Group Entity) or (ii)

 

    	- 52-

    	 

    

  

			attributable to a business or assets acquired during the Relevant Period for that part of the Relevant
Period prior to its (A) becoming a member of the Group or a Non-Group Entity (as applicable) or (B) prior to the acquisition of
the business or assets;

 

		(b)	excluding the Group’s share of the operating profit (and any loss) before taxation (calculated
on the same basis as Consolidated EBIT) of (i) a member of the Group (including for this purpose any Non-Group Entity) or (ii)
attributable to any business or assets disposed of during the Relevant Period for that part of the Relevant Period after (A) the
member of the Group or Non-Group Entity (as applicable) or (B) the relevant business assets were sold,

 

provided that,
for the purposes of paragraphs (a) and (b) above such adjustments to the calculation of Consolidated EBITDA are properly reflected
in the financial statements to be delivered pursuant to Clause 18.1 (Financial statements) and provided that paragraphs
(a) and (b) above are to be incorporated into Consolidated EBITA only in respect of the Leverage Ratio set out in Clause 19.2(a)
(Financial condition).

 

“Consolidated
Net Finance Charges” means, in respect of any Relevant Period, consolidated Finance Charges (including any capitalised
interest) and similar items as shown in the financial statements of the Group then most recently delivered under paragraphs (a)
or (b) of Clause 18.1 (Financial statements) (as the case may be) in respect of Indebtedness for Borrowed Money less interest
income.

 

“Consolidated
Tangible Net Worth” means at any time the aggregate of the amounts paid up or credited as paid up on the issued ordinary
share capital of the Borrower and the aggregate amount of the reserves of the Group,

 

including:

 

		(a)	any amount credited to the share premium account;

 

		(b)	any capital redemption reserve fund; and

 

		(c)	any balance standing to the credit of the consolidated income statement of the Group including
the Group’s share of profits (or losses) from Non-Group Entities,

 

but deducting:

 

		(d)	any debit balance on the consolidated income statement of the Group;

 

		(e)	(to the extent included) any amount shown in respect of goodwill (including goodwill arising only
on consolidation) or other intangible assets of the Group;

 

		(f)	any amount which is attributable to minority interests;

 

		(g)	(to the extent included) any amount set aside for taxation, deferred taxation or bad debts;

 

    	- 53-

    	 

    

  

		(h)	(to the extent included) any amounts arising from an upward revaluation of assets made at any time
after 31 December 2013; and

 

		(i)	any amount in respect of any dividend or distribution declared, recommended or made by any member
of the Group to the extent payable to a person who is not a member of the Group and to the extent such distribution is not provided
for in the most recent financial statements,

 

and so that no amount shall be included
or excluded more than once.

 

“Consolidated
Total Debt” means, in respect of each Relevant Period, the aggregate principal amount (excluding interest) of all obligations
of the Group for or in respect of Indebtedness for Borrowed Money as determined from the financial statements of the Group then
most recently delivered under paragraphs (a) or (b) of Clause 18.1 (Financial statements).

 

“Debt
Cover” means, in respect of any Relevant Period, the ratio of Consolidated Total Debt on the last day of that Relevant
Period to Consolidated EBITDA for that Relevant Period.

 

“Exceptional
Items” means any exceptional, one off, non-recurring or extraordinary items.

 

“Finance
Charges” means any interest, commission, fees, discounts, prepayment fees, premiums or charges and other periodic finance
payments in respect of Indebtedness for Borrowed Money whether paid, payable or capitalised by any member of the Group (calculated
on a consolidated basis) in respect of that Relevant Period:

 

		(a)	excluding any upfront fees or costs;

 

		(b)	including the interest (but not the capital) element of payments in respect of Finance Leases;

 

		(c)	including any periodic finance payments payable by (and deducting any such amounts payable to)
any member of the Group under any interest rate hedging arrangement;

 

		(d)	taking no account of any unrealised gains or losses on any derivative instruments.

 

“Finance
Lease” means any lease or hire purchase contract which would, in accordance with IFRS, be treated as a finance or capital
lease.

 

“Indebtedness
for Borrowed Money” means Financial Indebtedness save for any indebtedness for or in respect of paragraph (g) of the
definition of “Financial Indebtedness”.

 

“Interest
Cover” means, in respect of any Relevant Period, the ratio of Consolidated EBITDA for that Relevant Period to Consolidated
Net Finance Charges for that Relevant Period.

 

    	- 54-

    	 

    

  

“Non-Group
Entity” means any investment or entity (which is not itself a member of the Group (including associates and joint ventures))
in which any member of the Group has an ownership interest.

 

		19.2	Financial condition

 

The Borrower shall ensure that:

 

		(a)	Leverage Ratio: Debt Cover in respect of any Relevant Period shall not be more than 3.00:1.

 

		(b)	Interest Cover Ratio: Interest Cover for each Relevant Period shall be not less than
4.00:1

 

		(c)	Tangible Net Worth: Consolidated Tangible Net Worth shall not at any time during the Relevant
Period be less than USD 2,000,000,000.

 

		19.3	Financial testing

 

The financial covenants set out in
Clause 19.2 (Financial condition) shall be tested by reference to each of the financial statements and each Compliance Certificate
delivered pursuant to Clause 18.2 (Compliance Certificate).

 

		20.	General Undertakings

 

The undertakings in this Clause 20
remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment
is in force.

 

		20.1	Authorisations

 

The Borrower shall promptly:

 

		(a)	obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

		(b)	supply certified copies to the Facility Agent of,

 

any Authorisation required under
any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents
and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance
Document.

 

		20.2	Compliance with laws

 

The Borrower shall comply in all
respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations
under the Finance Documents.

 

    	- 55-

    	 

    

 

		20.3	Anti-corruption law and anti-money laundering

 

		(a)	The Borrower shall not, and shall ensure that no other member of the Group will, directly or indirectly
use the proceeds of any Loan or lend, permit, contribute or otherwise make available such proceeds to any person for any purpose
which would breach the Corruption (Jersey) Law 2006, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation
in other applicable jurisdictions in which the Borrower or other member of the Group operates from time to time.

 

		(b)	The Borrower shall, and shall ensure that each other member of the Group will:

 

		(i)	conduct its businesses in compliance with applicable anti-corruption laws; and

 

		(ii)	maintain policies and procedures designed to promote and achieve compliance with such laws.

 

		(c)	The Borrower shall and shall ensure that all members of the Group will conduct its business in
compliance with applicable financial record keeping and reporting requirements and money laundering statutes and the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental
agency.

 

		20.4	Taxation

 

		(a)	The Borrower shall, and shall ensure that each member of the Group will, pay and discharge all
Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that
failure to pay such Taxes would not have, or could not be reasonably likely to have, a Material Adverse Effect.

 

		(b)	The Borrower shall not change its residence for Tax purposes.

 

		20.5	Negative pledge

 

In this Clause
20.5, “Quasi-Security” means an arrangement or transaction described in paragraph (b) below.

 

		(a)	The Borrower shall not (and shall ensure that no other member of the Group will) create or permit
to subsist any Security over any of its assets.

 

		(b)	The Borrower shall not (and shall ensure that no other member of the Group will):

 

		(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased
to or re-acquired by the Borrower or any other member of the Group;

 

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

 

    	- 56-

    	 

    

  

		(iii)	enter into any arrangement under which money or the benefit of a bank or other account may be applied,
set-off or made subject to a combination of accounts; or

 

		(iv)	enter into any other preferential arrangement having a similar effect,

 

in circumstances where the arrangement
or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

 

		(c)	Paragraphs (a) and (b) above do not apply to any Security or (as the case may be) Quasi-Security,
listed below:

 

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

 

		(ii)	any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered
into by a member of the Group for the purpose of:

 

		(A)	hedging any risk to which any member of the Group is exposed in its ordinary course of trading;
or

 

		(B)	its interest rate or currency management operations which are carried out in the ordinary course
of business and for non-speculative purposes only,

 

excluding, in each case, any Security
or Quasi-Security under a credit support arrangement in relation to a hedging transaction;

 

		(iii)	any lien arising by operation of law and in the ordinary course of trading and not as a result
of any default or omission of the Borrower or any member of the Group;

 

		(iv)	any Security or Quasi-Security over or affecting any asset acquired by a member of the Group after
the date of this Agreement if:

 

		(A)	the Security or Quasi-Security was not created in contemplation of the acquisition of that asset
by a member of the Group;

 

		(B)	the principal amount secured has not been increased in contemplation of or since the acquisition
of that asset by a member of the Group; and

 

		(C)	the Security or Quasi-Security is removed or discharged within 6 months of the date of acquisition
of such asset;

 

		(v)	any Security or Quasi-Security over or affecting any asset of any company which becomes a member
of the Group after the date of this Agreement, where the Security or Quasi-Security is created prior to the date on which that
company becomes a member of the Group, if:

 

    	- 57-

    	 

    

 

		(A)	the Security or Quasi-Security was not created in contemplation of the acquisition of that company;

 

		(B)	the principal amount secured has not increased in contemplation of or since the acquisition of
that company; and

 

		(C)	the Security or Quasi-Security is removed or discharged within 6 months of that company becoming
a member of the Group;

 

		(vi)	any Security or Quasi-Security entered into pursuant to any Finance Document;

 

		(vii)	any Security or Quasi-Security arising under any retention of title, hire purchase or conditional
sale arrangement or arrangements having similar effect in respect of goods supplied to a member of the Group in the ordinary course
of trading and on the supplier’s standard or usual terms and not arising as a result of any default or omission by any member
of the Group;

 

		(viii)	any Security or Quasi-Security imposed by a court or tribunal or created pursuant to an order of
attachment, distraint, payment order or injunction restraining disposal of assets or similar legal process arising in connection
with court proceedings, provided that such attachment, distraint, order or injunction does not have or could not reasonably be
expected to have a Material Adverse Effect;

 

		(ix)	any lien or rights of set-off (i) with respect to demand or time deposits arising in the ordinary
course of business with financial institutions or (ii) arising in the normal course of business or (iii) arising by operation of
law;

 

		(x)	any Security or Quasi-Security over goods and/or documents of title to goods arising in the ordinary
course of day-to-day business entered into in the ordinary course of day-to-day business; or

 

		(xi)	any Security or Quasi-Security securing indebtedness the principal amount of which (when aggregated
with the principal amount of any other indebtedness which has the benefit of Security or Quasi-Security given by any member of
the Group other than any permitted under paragraphs (i) to (x) above and with the amount of any Financial Indebtedness incurred,
created or outstanding pursuant to Clause 20.11(b)(ii) (Financial Indebtedness)) does not exceed USD100,000,000 (or its
equivalent in another currency or currencies).

 

		20.6	Disposals

 

		(a)	The Borrower shall not (and shall ensure that no other member of the Group will), enter into a
single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer
or otherwise dispose of any asset.

 

    	- 58-

    	 

    

 

		(b)	Paragraph (a) above does not apply to any sale, lease, transfer or other 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)	to another member of the Group; or

 

		(iv)	where the higher of the market value or consideration receivable (when aggregated with the higher
of the market value or consideration receivable for any other sale, lease, transfer or other disposal, other than any permitted
under paragraphs (i) to (iii) above) does not exceed an amount equal to gross assets representing 7.5 per cent. of the gross assets
of the Group, calculated on a consolidated basis, in any financial year.

 

		20.7	Merger

 

The Borrower shall not (and shall
ensure that no Material Subsidiary shall) enter into any amalgamation, demerger, merger or corporate reconstruction (excluding
any solvent intra-group mergers) without the prior written consent of the Majority Lenders.

 

		20.8	Change of business

 

The Borrower shall procure that no
substantial change is made to the general nature of the business of the Group taken as a whole from that carried on at the date
of this Agreement.

 

		20.9	Loans or credit

 

		(a)	Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no
other member of the Group will) be a creditor in respect of any Financial Indebtedness.

 

		(b)	Paragraph (a) above does not apply to any loan or credit granted:

 

		(i)	by the Borrower or a member of the Group in favour of the Borrower or other member of the Group,
an Affiliate of the Borrower or any entity which owns a Material Property; and

 

		(ii)	in the ordinary course of business of the Group.

 

		20.10	No Guarantees or indemnities

 

		(a)	Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no
other member of the Group will) incur or allow to remain outstanding any guarantee or indemnity in respect of any obligation of
any person.

 

    	- 59-

    	 

    

  

		(b)	Paragraph (a) does not apply to any guarantee or indemnity incurred:

 

		(i)	by the Borrower or a member of the Group in respect of an obligation of the Borrower, an Affiliate
of the Borrower or any entity which owns a Material Property; and

 

		(ii)	in the ordinary course of business of the Group.

 

		20.11	Financial Indebtedness

 

		(a)	Except as permitted under paragraph (b) below, the Borrower shall not (and shall ensure that no
other member of the Group will) incur, create or allow to remain outstanding any Financial Indebtedness.

 

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

 

		(i)	Financial Indebtedness incurred pursuant to Clause 20.9(b) (Loans or credit); or

 

		(ii)	Financial Indebtedness:

 

		(A)	in an amount of not more than USD100,000,000 (or its equivalent) which ranks ahead of, and in priority
to, the Financial Indebtedness arising under this Agreement;

 

		(B)	in an amount of not more than USD200,000,000 (or its equivalent) which ranks pari passu
with the Financial Indebtedness arising under this Agreement; and

 

		(C)	not permitted by the preceding paragraphs but which is incurred by the Borrower on terms which
are subordinated to the Finance Parties in a manner satisfactory to the Majority Lenders.

 

		20.12	Insurance

 

The Borrower shall ensure that it
and each other member of the Group will maintain insurances on and in relation to the Group’s business and assets against
those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

 

		20.13	Access

 

If an Event of Default is continuing
or the Facility Agent reasonably suspects that an Event of Default is continuing or may occur, the Borrower shall, and shall ensure
that each member of the Group will, (not more than once in any Financial Year unless the Facility Agent reasonably suspects an
Event of Default is continuing or may occur) permit the Facility Agent and/or accountants or other professional advisers and contractors
of the Facility Agent free access at all reasonable times and on reasonable notice at the risk and cost of the Borrower and, if
the Borrower so requires, in the presence of a representative of the Borrower, to (a) the premises, assets, books, accounts and
records of each member of the Group and (b) meet and discuss matters

 

    	- 60-

    	 

    

 

with such members of the senior management
of the Group as the Facility Agent may reasonably request in each case to the extent necessary for the purpose of investigating
the Event of Default concerned (provided that, for the avoidance of doubt, all information obtained as a result of such access
shall be subject to the confidentiality restrictions set out in Clause 24.13 (Confidentiality) and Clause 34 (Confidentiality)
and provided further that, in the event that such investigations as are carried out under this Clause 20.13 do not reveal that
an Event of Default referred to above has occurred, all costs incurred by the Facility Agent and the Lenders in connection with
the foregoing shall be for the account of the Facility Agent and the Lenders only).

 

		20.14	Treasury Transactions

 

The Borrower shall not (and shall
procure that no other member of the Group will) enter into any Treasury Transaction, other than any interest rate, foreign exchange
rate or gold price hedging entered into in the ordinary course of business and not for speculative purposes.

 

		20.15	Environmental compliance

 

The Borrower shall, and shall ensure
that each other member of the Group will:

 

		(a)	comply in all material respects with all Environmental Law;

 

		(b)	obtain, maintain and ensure compliance with all requisite Environmental Permits;

 

		(c)	implement procedures to monitor compliance with and to prevent liability under any Environmental
Law,

 

where failure to do so has or is
reasonably likely to have a material and adverse affect on the interests of the Lenders under the Finance Documents.

 

		20.16	Environmental claims

 

The Borrower shall, promptly upon
becoming aware of the same, inform the Facility Agent in writing of:

 

		(a)	any Environmental Claim against any member of the Group which is current, pending or threatened;
and

 

		(b)	any facts or circumstances which are reasonably likely to result in any Environmental Claim being
commenced or threatened against any member of the Group,

 

where failure to do so has or is
reasonably likely to have a material and adverse affect on the interests of the Lenders under the Finance Documents.

 

		20.17	Sanctions

 

The Borrower shall (and shall procure
that each member of the Group shall):

 

    	- 61-

    	 

    

 

		(a)	not contribute or otherwise use or make available the proceeds of the Facility, directly or indirectly,
to any person or entity (whether or not related to any member of the Group) for the purpose of financing or facilitating the activities
or business of or with any person or entity targeted under any Sanction or located in a Sanctioned Country in any manner that would
result in a violation of Sanctions by any Finance Party or member of the Group;

 

		(b)	ensure that appropriate controls and safeguards are in place to prevent any proceeds of the Facility
from being used in any manner contrary to paragraph (a) above; and

 

		(c)	not fund all or part of any payment in connection with a Finance Document out of proceeds derived
from business or transactions with a Restricted Party, or from any action which is in breach of any Sanctions,

 

in each case, other than as may be
permitted, licensed or otherwise authorised by the US government, the United Nations, the European Union, the United Kingdom or
the respective Governmental Authorities of any of the foregoing.

 

		21.	Events of Default

 

Each of the events or circumstances
set out in this Clause 21 is an Event of Default (save for Clause 21.16 (Acceleration)).

 

		21.1	Non-payment

 

The Borrower does not pay on the
due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable
unless:

 

		(a)	its failure to pay is caused by:

 

		(i)	administrative or technical error; or

 

		(ii)	a Disruption Event; and

 

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

 

		21.2	Financial covenants

 

Any requirement of Clause 19 (Financial
Covenants) is not satisfied.

 

		21.3	Other obligations

 

		(a)	The Borrower does not comply with any provision of the Finance Documents (other than those referred
to in Clause 21.1 (Non-payment) and Clause 21.2 (Financial covenants)).

 

    	- 62-

    	 

    

 

		(b)	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of
remedy and is remedied within 15 Business Days of the earlier of:

 

		(i)	the Facility Agent giving notice to the Borrower; and

 

		(ii)	the Borrower becoming aware of the failure to comply.

 

		21.4	Misrepresentation

 

		(a)	Any representation or statement made or deemed to be made by the Borrower in the Finance Documents
or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to
have been incorrect or misleading in any material respect when made or deemed to be made.

 

		(b)	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of
remedy and is remedied within 15 Business Days of the earlier of:

 

		(i)	the Facility Agent giving notice to the Borrower; and

 

		(ii)	the Borrower becoming aware of the failure to comply.

 

		21.5	Cross default

 

		(a)	Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally
applicable grace period.

 

		(b)	Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended
by a creditor of any member of the Group as a result of an event of default (however described).

 

		(c)	Any creditor of any member of the Group becomes entitled to declare or declares any Financial Indebtedness
of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described).

 

		(d)	No Event of Default will occur under this Clause 21.5 if the aggregate amount of Financial Indebtedness
or commitment for Financial Indebtedness falling within paragraphs (a) to (c) above is less than USD25,000,000 (or its equivalent
in any other currency or currencies).

 

		21.6	Insolvency

 

		(a)	The Borrower or any Material Subsidiary is unable or admits inability to pay its debts as they
fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

    	- 63-

    	 

    

 

		(b)	A moratorium is declared in respect of any indebtedness of the Borrower or any Material Subsidiary.

 

		(c)	The Borrower or any Material Subsidiary becomes “bankrupt” within the meaning of Article
8 of the Interpretation (Jersey) Law 1954, as amended.

 

		21.7	Insolvency proceedings

 

Any corporate action, legal proceedings
or other procedure or step is taken in relation to:

 

		(a)	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration
or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower or any Material Subsidiary
other than a solvent liquidation or reorganisation of any Material Subsidiary;

 

		(b)	a composition, compromise, assignment or arrangement with any creditor of the Borrower or any Material
Subsidiary;

 

		(c)	the appointment of a liquidator, the Viscount of the Royal Court of Jersey (other than in respect
of a solvent liquidation of a Material Subsidiary), receiver, administrative receiver, administrator, compulsory manager or other
similar officer in respect of the Borrower or any Material Subsidiary or any of the assets of the Borrower or any Material Subsidiary;
or

 

		(d)	enforcement of any Security over any assets of the Borrower or any Material Subsidiary having an
aggregate value in excess of USD25,000,000,

 

or any analogous procedure or step
is taken in any jurisdiction.

 

This Clause 21.7 shall not apply
to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 21 days of commencement.

 

		21.8	Creditors’ process

 

Any expropriation, attachment, sequestration,
distress or execution affects any asset or assets of a member of the Group having an aggregate value of USD25,000,000 and is not
discharged within 21 days.

 

		21.9	Unlawfulness and invalidity

 

		(a)	It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance
Documents.

 

		(b)	Any obligation or obligations of the Borrower under any Finance Documents are not or cease to be
legal, valid, binding or enforceable.

 

		(c)	Any Finance Document ceases to be in full force and effect or is alleged by a party to it (other
than a Finance Party) to be ineffective.

 

    	- 64-

    	 

    

 

		21.10	Repudiation

 

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

 

		21.11	Cessation of Business

 

The Group (taken as a whole) suspends
or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business except as otherwise
permitted by this Agreement.

 

		21.12	Litigation

 

Any litigation, arbitration, administrative,
governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Finance
Documents or the transactions contemplated in the Finance Documents or against any member of the Group or its assets which are
reasonably likely to be adversely determined and which if so adversely determined have or are reasonably likely to have a Material
Adverse Effect.

 

		21.13	Expropriation

 

The authority or ability of any Material
Subsidiary which conducts all or substantially all of its business in Mali to conduct its business is limited by any seizure, expropriation,
nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority having
jurisdiction in Mali in a way which has or is reasonably likely to have a material adverse effect on the ability of the Borrower
to meet is payment obligations under any of the Finance Documents taking into account the freely available resources of other members
of the Group.

 

		21.14	Convertibility/Transferability

 

Any foreign exchange law is amended,
enacted or introduced in Mali that has or is reasonably likely to have the effect of prohibiting, or restricting or delaying in
any material respect any payment that the Borrower is required to make pursuant to the terms of any of the Finance Documents taking
into account the freely available resources of other members of the Group.

 

		21.15	Material adverse change

 

Any event or circumstance occurs
which has or is reasonably likely to have a Material Adverse Effect.

 

		21.16	Acceleration

 

On and at any time after the occurrence
of an Event of Default which is continuing the Facility Agent may, and shall if so directed by the Majority Lenders, by notice
to the Borrower:

 

		(a)	cancel the Total Commitments whereupon they shall immediately be cancelled;

 

    	- 65-

    	 

    

 

		(b)	declare that all or part of the Loans, together with accrued interest, and all other amounts accrued
or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable;
and/or

 

		(c)	declare that all or part of the Loans be payable on demand, whereupon they shall immediately become
payable on demand by the Facility Agent on the instructions of the Majority Lenders.

 

    	- 66-

    	 

    

 

SECTION 9

CHANGES TO PARTIES

 

		22.	Changes to the Lenders

 

		22.1	Assignments and transfers by the Lenders

 

Subject to this Clause 22, a Lender
(the “Existing Lender”) may:

 

		(a)	assign any of its rights; or

 

		(b)	transfer by novation any of its rights and obligations,

 

under any Finance Document to another
bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose
of making, purchasing or investing in loans, securities or other financial assets (the “New Lender”).

 

		22.2	Conditions of assignment or transfer

 

		(a)	The consent of the Borrower is required for an assignment or transfer by an Existing Lender, unless
the assignment or transfer is:

 

		(i)	to another Lender or an Affiliate of a Lender; or

 

		(ii)	made at a time when an Event of Default is continuing.

 

		(b)	The consent of the Borrower to an assignment or transfer must not be unreasonably withheld or delayed.
The Borrower will be deemed to have given its consent ten Business Days after the Existing Lender has requested it unless consent
is expressly refused by the Borrower within that time.

 

		(c)	An assignment will only be effective on:

 

		(i)	receipt by the Facility Agent (whether in the Assignment Agreement or otherwise) of written confirmation
from the New Lender (in form and substance satisfactory to the Facility Agent) that the New Lender will assume the same obligations
to the other Finance Parties as it would have been under if it was an Original Lender; and

 

		(ii)	performance by the Facility Agent of all necessary “know your customer” or other similar
checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Facility
Agent shall promptly notify to the Existing Lender and the New Lender.

 

		(d)	A transfer will only be effective if the procedure set out in Clause 22.5 (Procedure for transfer)
is complied with.

 

		(e)	If:

 

    	- 67-

    	 

    

 

		(i)	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes
its Facility Office; and

 

		(ii)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the
Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12
(Tax Gross Up and Indemnities) or Clause 13 (Increased Costs),

 

then the New Lender or Lender acting
through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender
or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. This
paragraph (e) shall not apply in respect of an assignment or transfer made in the ordinary course of the primary syndication of
the Facility.

 

		(f)	Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms,
for the avoidance of doubt, that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been
approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which
the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same
extent as the Existing Lender would have been had it remained a Lender.

 

		22.3	Assignment or transfer fee

 

The New Lender shall, on the date
upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of USD3,500.

 

		22.4	Limitation of responsibility of Existing Lenders

 

		(a)	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty
and assumes no responsibility to a New Lender for:

 

		(i)	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any
other documents;

 

		(ii)	the financial condition of the Borrower;

 

		(iii)	the performance and observance by the Borrower of its obligations under the Finance Documents or
any other documents; or

 

		(iv)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance
Document or any other document,

 

and any representations or warranties
implied by law are excluded.

 

		(b)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

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

 

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

 

		(c)	Nothing in any Finance Document obliges an Existing Lender to:

 

		(i)	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned
or transferred under this Clause 22; or

 

		(ii)	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance
by the Borrower of its obligations under the Finance Documents or otherwise.

 

		22.5	Procedure for transfer

 

		(a)	Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer)
a transfer is effected in accordance with paragraph (c) below when the Facility Agent executes an otherwise duly completed Transfer
Certificate delivered to it by the Existing Lender and the New Lender. The Facility Agent shall, subject to paragraph (b) below,
as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply
with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

 

		(b)	The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the
Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

 

		(c)	Subject to Clause 22.9 (Pro rata interest settlement), on the Transfer Date:

 

		(i)	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation
its rights and obligations under the Finance Documents the Borrower and the Existing Lender shall be released from further obligations
towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall
be cancelled (being the “Discharged Rights and Obligations”);

 

		(ii)	the Borrower and the New Lender shall assume obligations towards one another and/or acquire rights
against one another which differ from the Discharged Rights and Obligations only insofar as the Borrower

 

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			and the New Lender have assumed and/or acquired the same in place of the Borrower and the Existing
Lender;

 

		(iii)	the Facility Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights
and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original
Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility
Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents;
and

 

		(iv)	the New Lender shall become a Party as a “Lender”.

 

		22.6	Procedure for assignment

 

		(a)	Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer)
an assignment may be effected in accordance with paragraph (c) below when the Facility Agent executes an otherwise duly completed
Assignment Agreement delivered to it by the Existing Lender and the New Lender. The Facility Agent shall, subject to paragraph
(b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face
to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment
Agreement.

 

		(b)	The Facility Agent shall only be obliged to execute an Assignment Agreement delivered to it by
the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

 

		(c)	Subject to Clause 22.9 (Pro rata interest settlement), on the Transfer Date:

 

		(i)	the Existing Lender will assign absolutely to the New Lender the rights under the Finance Documents
expressed to be the subject of the assignment in the Assignment Agreement;

 

		(ii)	the Existing Lender will be released by the Borrower and the other Finance Parties from the obligations
owed by it (the “Relevant Obligations”) and expressed to be the subject of the release in the Assignment Agreement;
and

 

		(iii)	the New Lender shall become a Party as a “Lender” and will be bound by obligations
equivalent to the Relevant Obligations.

 

		(d)	Lenders may utilise procedures other than those set out in this Clause 22.6 to assign their rights
under the Finance Documents (but not, without the consent of the Borrower or unless in accordance with Clause 22.5 (Procedure
for transfer), to obtain a release by the Borrower from the obligations owed to the Borrower by the Lenders nor the assumption
of equivalent obligations by a

 

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			New Lender) provided that they comply with the conditions set out in Clause 22.2 (Conditions
of assignment or transfer).

 

		22.7	Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Borrower

 

The Facility Agent shall, as soon
as reasonably practicable after it has executed a Transfer Certificate, an Assignment Agreement or Increase Confirmation, send
to the Borrower a copy of that Transfer Certificate, Assignment Agreement or Increase Confirmation.

 

		22.8	Security over Lenders’ rights

 

In addition to the other rights provided
to Lenders under this Clause 22, each Lender may without consulting with or obtaining consent from the Borrower, at any time charge,
assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance
Document to secure obligations of that Lender including, without limitation:

 

		(a)	any charge, assignment or other Security to secure obligations to a federal reserve or central
bank; and

 

		(b)	in the case of any Lender which is a fund, any charge, assignment or other Security granted to
any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for
those obligations or securities,

 

except that no such charge, assignment
or Security shall:

 

		(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary
of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

 

		(ii)	require any payments to be made by the Borrower other than or in excess of, or grant to any person
any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

 

		22.9	Pro rata interest settlement

 

If the Facility Agent has notified
the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders
then (in respect of any transfer pursuant to Clause 22.5 (Procedure for transfer) or any assignment pursuant to Clause 22.6
(Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on
the last day of an Interest Period):

 

		(a)	any interest or fees in respect of the relevant participation which are expressed to accrue by
reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date
(“Accrued Amounts”) and shall become due and payable to the Existing Lender (without

 

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			further interest accruing on them) on the last day of the current Interest Period (or, if the Interest
Period is longer than six Months, on the next of the dates which falls at six Monthly intervals after the first day of that Interest
Period); and

 

		(b)	the rights assigned or transferred by the Existing Lender will not include the right to the Accrued
Amounts, so that, for the avoidance of doubt:

 

		(i)	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing
Lender; and

 

		(ii)	the amount payable to the New Lender on that date will be the amount which would, but for the application
of this Clause 22.9, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

		(c)	In this Clause 22.9 references to “Interest Period” shall be construed to include a
reference to any other period for accrual of fees.

 

		23.	Changes to the Borrower

 

The Borrower may not assign any of
its rights or transfer any of its rights or obligations under the Finance Documents.

 

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SECTION 10

THE FINANCE PARTIES

 

		24.	Role of the Facility Agent and the Arranger

 

		24.1	Appointment of the Facility Agent

 

		(a)	Each other Finance Party appoints the Facility Agent to act as its Facility Agent under and in
connection with the Finance Documents.

 

		(b)	Each other Finance Party authorises the Facility Agent to perform the duties, obligations and responsibilities
and to exercise the rights, powers, authorities and discretions specifically given to the Facility Agent under or in connection
with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

		24.2	Duties of the Facility Agent

 

		(a)	Subject to paragraph (b) below, the Facility Agent shall promptly forward to a Party the original
or a copy of any document which is delivered to the Facility Agent for that Party by any other Party.

 

		(b)	Without prejudice to Clause 22.7 (Copy of Transfer Certificate, Assignment Agreement or Increase
Confirmation to Borrower), paragraph (a) above shall not apply to any Transfer Certificate, any Assignment Agreement or any
Increase Confirmation.

 

		(c)	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.

 

		(d)	If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly notify the Finance Parties.

 

		(e)	If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or
other fee payable to a Finance Party (other than the Facility Agent or the Arranger) under this Agreement it shall promptly notify
the other Finance Parties.

 

		(f)	The Facility Agent’s duties under the Finance Documents are solely mechanical and administrative
in nature.

 

		24.3	Role of the Arranger

 

Except as specifically provided in
the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.

 

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		24.4	No fiduciary duties

 

		(a)	Nothing in this Agreement constitutes the Facility Agent or the Arranger as a trustee or fiduciary
of any other person.

 

		(b)	Neither the Facility Agent nor the Arranger shall be bound to account to any Lender for any sum
or the profit element of any sum received by it for its own account.

 

		24.5	Business with the Group

 

		(a)	The Facility Agent and the Arranger may accept deposits from, lend money to and generally engage
in any kind of banking or other business with any member of the Group.

 

		(b)	The Facility Agent shall be entitled to deal with any amount paid to it by any person for the purposes
of this Agreement in the same manner as any other amount paid to a bank by its customers except that it shall not be liable to
account to any person for any interest or other amounts in respect of such amount.

 

		24.6	Rights and discretions of the Facility Agent

 

		(a)	The Facility Agent may:

 

		(i)	rely on any representation, communication, notice or document believed by it to be genuine, correct
and appropriately authorised;

 

		(ii)	assume that:

 

		(A)	any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders
are duly given in accordance with the terms of the Finance Documents; and

 

		(B)	unless it has received notice of revocation, that those instructions have not been revoked; and

 

		(iii)	rely on a certificate from any person:

 

		(A)	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge
of that person; or

 

		(B)	to the effect that such person approves of any particular dealing, transaction, step, action or
thing,

 

as sufficient evidence that that
is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.

 

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		(b)	The Facility Agent may assume (unless it has received notice to the contrary in its capacity as
Facility Agent for the Lenders) that:

 

		(i)	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 21.1
(Non-payment));

 

		(ii)	any right, power, authority or discretion vested in any Party or any group of Lenders has not been
exercised; and

 

		(iii)	any notice or request made by the Borrower (other than a Utilisation Request) is made on behalf
of and with the consent and knowledge of the Borrower.

 

		(c)	The Facility Agent may engage and pay for the advice or services of any lawyers, accountants, tax
advisers, surveyors or other professional advisers or experts.

 

		(d)	Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Facility
Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Facility Agent (and so
separate from any lawyers instructed by the Lenders) if the Facility Agent in its reasonable opinion deems this to be necessary.

 

		(e)	The Facility Agent may rely on the advice or services of any lawyers, accountants, tax advisers,
surveyors or other professional advisers or experts (whether obtained by the Facility Agent or by any other Party) and shall not
be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result
of its so relying.

 

		(f)	The Facility Agent may act in relation to the Finance Documents through its officers, employees
and agents.

 

		(g)	Unless a Finance Document expressly provides otherwise, the Facility Agent may disclose to any
other Party any information it reasonably believes it has received as Facility Agent under this Agreement.

 

		(h)	Without prejudice to the generality of paragraph (g) above, the Facility Agent:

 

		(i)	may disclose; and

 

		(ii)	on the written request of the Borrower or the Majority Lenders shall, as soon as reasonably practicable,
disclose,

 

the identity of a
Defaulting Lender to the Borrower and to the other Finance Parties.

 

		(i)	Notwithstanding any provision of any Finance Document to the contrary, the Facility Agent is not
obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations
or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment
of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

 

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		(j)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility
Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach
of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

		(k)	Notwithstanding any other provision of any Finance Document to the contrary, the Facility Agent
is not obliged to do or omit to do anything:

 

		(i)	if it would, or might in its reasonable opinion, constitute a breach of any law or regulation or
a breach of a fiduciary duty or duty of confidentiality; and/or

 

		(ii)	in circumstances where the Borrower is in breach of any representation given in Clause 17.16 (Sanctions)
and/or is in breach of any undertaking given in Clause 20.17 (Sanctions), and it is prohibited by law or regulation for
the Facility Agent to notify the Lenders of such breach; and

 

under no circumstance
shall the Facility Agent be liable for any such failure to act or omission.

 

		(l)	The Facility Agent is authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. Nothing in this Agreement shall require the Facility Agent to carry
on an activity of the kind specified by any provision of Part II (other than article 5 (Accepting deposits)) of the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001 or to lend money to the Borrower in its capacity as Facility Agent.

 

		(m)	The fees, commission and expenses payable to the Facility Agent for services rendered and the performance
of its obligations under this Agreement shall not be abated by any remuneration or other amount received or to be received by the
Facility Agent (or any of its Affiliates) in connection with any transaction entered into by the Facility Agent with or for the
Lenders or the Borrower.

 

		24.7	Majority Lenders’ instructions

 

		(a)	Unless a contrary indication appears in a Finance Document, the Facility Agent shall (i) exercise
any right, power, authority or discretion vested in it as Facility Agent in accordance with any instructions given to it by the
Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion
vested in it as Facility Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action)
in accordance with an instruction of the Majority Lenders.

 

		(b)	Unless a contrary indication appears in a Finance Document, any instructions given by the Majority
Lenders will be binding on all the Finance Parties.

 

		(c)	The Facility Agent may refrain from acting in accordance with the instructions of the Majority
Lenders (or, if appropriate, the Lenders) until it has received

 

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			any indemnification and/or security as it may in its discretion require (which may be greater in
extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability (together
with any associated VAT) which it may incur in complying with the instructions.

 

		(d)	In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the
Facility Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.

 

		(e)	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that
Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

 

		24.8	Responsibility for documentation

 

Neither the Facility Agent nor the
Arranger:

 

		(a)	is responsible for the adequacy, accuracy and/or completeness of any information (whether oral
or written) supplied by the Facility Agent, the Arranger, the Borrower or any other person given in or in connection with any Finance
Document or the Information Memorandum;

 

		(b)	is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance
Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with
any Finance Document; or

 

		(c)	is responsible for any determination as to whether any information provided or to be provided to
any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating
to insider dealing or otherwise.

 

		24.9	Exclusion of liability

 

		(a)	Without limiting paragraph (b) below (and without prejudice to the provisions of paragraph (e)
of Clause 27.11 (Disruption to Payment Systems etc.), the Facility Agent will not be liable (including, without limitation,
for negligence or any other category of liability whatsoever) for:

 

		(i)	any action taken by it under or in connection with any Finance Document, or for any damages, costs
or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action
under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct;

 

		(ii)	exercising, or not exercising, any right, power, authority or discretion given to it by, or in
connection with, any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation
of, under or in connection with, any Finance Document; or

 

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		(iii)	without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses
to any person, any diminution in value or any liability whatsoever arising as a result of:

 

		(A)	any act, event or circumstance not reasonably within its control; or

 

		(B)	the general risks of investment in, or the holding of assets in, any jurisdiction,

 

including (in each case and without
limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation
or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the
execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction
of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism,
insurrection or revolution; or strikes or industrial action.

 

		(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 relation to any Finance Document and any officer, employee or agent of the Facility
Agent may rely on this Clause subject to Clause 1.4 (Third Party Rights) and the provisions of the Third Parties Act.

 

		(c)	The Facility Agent will not be liable for any delay (or any related consequences) in crediting
an account with an amount required under the Finance Documents to be paid by the Facility Agent if the Facility Agent has taken
all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised
clearing or settlement system used by the Facility Agent for that purpose.

 

		(d)	Nothing in this Agreement shall oblige the Facility Agent or the Arranger to carry out any “know
your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Facility
Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on
any statement in relation to such checks made by the Facility Agent or the Arranger.

 

		(e)	Without prejudice to any provision of any Finance Document excluding or limiting the Facility Agent’s
liability, any liability of the Facility Agent arising under or in connection with any Finance Document shall be limited to the
amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date
of default of the Facility Agent or, if later, the date on which the loss arises as a result of such default) but without reference
to any special conditions or circumstances known to the Facility Agent at any time which increase the amount of that loss. In no
event shall the Facility Agent be liable for any loss of profits, goodwill, reputation,

 

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			business opportunity or anticipated saving, or for special, punitive, indirect or consequential
damages, whether or not the Facility Agent has been advised of the possibility of such loss or damages

 

		24.10	Lenders’ indemnity to the Facility Agent

 

		(a)	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments
are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent,
within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any
other category of liability whatsoever) incurred by the Facility Agent (otherwise than by reason of the Facility Agent’s
gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 27.11 (Disruption
to Payment Systems etc.) notwithstanding the Facility Agent’s negligence, gross negligence or any other category of liability
whatsoever but not including any claim based on the fraud of the Facility Agent) in acting as Facility Agent under the Finance
Documents (unless the Facility Agent has been reimbursed by the Borrower pursuant to a Finance Document).

 

		(b)	Subject to paragraph (c) below, the Borrower shall immediately on demand reimburse any Lender for
any payment that Lender makes to the Facility Agent pursuant to paragraph (a) above.

 

		(c)	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which
the Lender claims reimbursement relates to a liability of the Facility Agent to the Borrower.

 

		(d)	The indemnity given by each Lender under or in connection with this Clause is a continuing obligation,
independent of the other obligations of the Lenders under or in connection with this Agreement or any other document and survives
after this Agreement is terminated. It is not necessary for a person to pay an amount or incur any expense before enforcing an
indemnity under or in connection with this Agreement or any other document.

 

		24.11	Resignation of the Facility Agent

 

		(a)	The Facility Agent may resign and appoint one of its Affiliates acting through an office in the
United Kingdom as successor by giving notice to the other Finance Parties and the Borrower.

 

		(b)	Alternatively the Facility Agent may resign by giving 30 days’ notice to the other Finance
Parties and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor Facility
Agent.

 

		(c)	If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph
(b) above within 20 days after notice of resignation was given, the retiring Facility Agent (after consultation with the Borrower)
may appoint a successor Facility Agent (acting through an office in the United Kingdom).

 

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		(d)	The retiring Facility Agent shall, 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 Facility Agent under the Finance Documents.

 

		(e)	The Facility Agent’s resignation notice shall only take effect upon the appointment of a
successor.

 

		(f)	Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further
obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 24. Any successor and each
of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had
been an original Party.

 

		(g)	After consultation with the Borrower, the Majority Lenders may, by notice to the Facility Agent,
require it to resign in accordance with paragraph (b) above. In this event, the Facility Agent shall resign in accordance with
paragraph (b) above.

 

		(h)	The Facility Agent shall resign in accordance with paragraph (b) above if on or after the date
which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent under the Finance
Documents, either:

 

		(i)	the Facility Agent fails to respond to a request under Clause 12.7 (FATCA Information) and
the Borrower or a Lender reasonably believes that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party
on or after that FATCA Application Date;

 

		(ii)	the information supplied by the Facility Agent pursuant to Clause 12.7 (FATCA Information)
indicates that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application
Date; or

 

		(iii)	the Facility Agent notifies the Borrower and the Lenders that the Facility Agent will not be (or
will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

and (in each case)
the Borrower or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required
if the Facility Agent were a FATCA Exempt Party, and the Borrower or that Lender, by notice to the Facility Agent, requires it
to resign.

 

		24.12	Replacement of the Facility Agent

 

		(a)	After consultation with the Borrower, the Majority Lenders may, by giving 30 days’ notice
to the Facility Agent (or, at any time the Facility Agent is an Impaired Agent, by giving any shorter notice determined by the
Majority

 

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			Lenders) replace the Facility Agent by appointing a successor Facility Agent (acting through an
office in the United Kingdom).

 

		(b)	The retiring Facility Agent shall (at its own cost if it is an Impaired Agent and otherwise at
the expense of the Lenders) make available to the successor Facility Agent such documents and records and provide such assistance
as the successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the
Finance Documents.

 

		(c)	The appointment of the successor Facility Agent shall take effect on the date specified in the
notice from the Majority Lenders to the retiring Facility Agent. As from this date, the retiring Facility Agent shall be discharged
from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (b) above) but shall
remain entitled to the benefit of Clause 14.3 (Indemnity to the Facility Agent) and this Clause 24 (and any agency fees
for the account of the retiring Facility Agent shall cease to accrue from (and shall be payable on) that date).

 

		(d)	Any successor Facility Agent and each of the other Parties shall have the same rights and obligations
amongst themselves as they would have had if such successor had been an original Party.

 

		24.13	Confidentiality

 

		(a)	In acting as Facility Agent for the Finance Parties, the Facility Agent shall be regarded as acting
through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

		(b)	If information is received by another division or department of the Facility Agent, it may be treated
as confidential to that division or department and the Facility Agent shall not be deemed to have notice of it.

 

		24.14	Relationship with the Lenders

 

		(a)	Subject to Clause 22.9 (Pro rata interest settlement), the Facility Agent may treat the
person shown in its records as Lender at the opening of business (in the place of the Facility Agent’s principal office as
notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

		(i)	entitled to or liable for any payment due under any Finance Document on that day; and

 

		(ii)	entitled to receive and act upon any notice, request, document or communication or make any decision
or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than
five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

		(b)	Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices,
communications, information and documents to be made or despatched to that Lender under the Finance Documents. Such notice shall

 

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			contain the address, fax number and (where communication by electronic mail or other electronic
means is permitted under Clause 29.6 (Electronic communication)) electronic mail address and/or any other information required
to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose
attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address,
department and officer by that Lender for the purposes of Clause 29.2 (Addresses) and paragraph (a)(ii) of Clause 29.6 (Electronic
communication) and the Facility Agent shall be entitled to treat such person as the person entitled to receive all such notices,
communications, information and documents as though that person were that Lender.

 

		24.15	Credit appraisal by the Lenders

 

Without affecting the responsibility
of the Borrower for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to
the Facility Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

		(a)	the financial condition, status and nature of each member of the Group;

 

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any
other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance
Document;

 

		(c)	whether that Lender has recourse, and the nature and extent of that recourse, against any Party
or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance
Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection
with any Finance Document; and

 

		(d)	the adequacy, accuracy and/or completeness of the Information Memorandum and any other information
provided by the Facility Agent, any Party or by any other person under or in connection with any Finance Document, the transactions
contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation
of, under or in connection with any Finance Document.

 

		24.16	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 shall (in consultation
with the Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

 

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		24.17	Facility Agent’s Management Time

 

Any amount payable to the Facility
Agent under Clause 14.3 (Indemnity to the Facility Agent), Clause 16 (Costs and Expenses) and Clause 24.10 (Lenders’
indemnity to the Facility Agent) shall include the cost of utilising the Facility Agent’s management time or other resources
and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent may notify to the Borrower and
the Lenders, and is in addition to any fee paid or payable to the Facility Agent under Clause 11 (Fees).

 

		24.18	Deduction from amounts payable by the Facility Agent

 

If any Party owes an amount to the
Facility Agent under the Finance Documents the Facility Agent may, after giving notice to that Party, deduct an amount not exceeding
that amount from any payment to that Party which the Facility Agent would otherwise be obliged to make under the Finance Documents
and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party
shall be regarded as having received any amount so deducted.

 

		25.	Conduct of Business by the Finance Parties

 

No provision of this Agreement will:

 

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

 

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

 

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

 

		26.	Sharing among the Finance Parties

 

		26.1	Payments to Finance Parties

 

If a Finance Party (a “Recovering
Finance Party”) receives or recovers any amount from the Borrower other than in accordance with Clause 27 (Payment
Mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:

 

		(a)	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or
recovery to the Facility Agent;

 

		(b)	the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the
Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed
in accordance with Clause 27 (Payment Mechanics), without taking account of any Tax which would be imposed on the Facility
Agent in relation to the receipt, recovery or distribution; and

 

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		(c)	the Recovering Finance Party shall, within three Business Days of demand by the Facility Agent,
pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount
which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in
accordance with Clause 27.6 (Partial payments).

 

		26.2	Redistribution of payments

 

The Facility Agent shall treat the
Sharing Payment as if it had been paid by the Borrower and distribute it between the Finance Parties (other than the Recovering
Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 27.6 (Partial payments) towards
the obligations of the Borrower to the Sharing Finance Parties.

 

		26.3	Recovering Finance Party’s rights

 

On a distribution by the Facility
Agent under Clause 26.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from the Borrower,
as between the Borrower and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be
treated as not having been paid by the Borrower.

 

		26.4	Reversal of redistribution

 

If any part of the Sharing Payment
received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

		(a)	each Sharing Finance Party shall, upon request of the Facility Agent, pay to the Facility Agent
for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together
with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment
which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

		(b)	as between the Borrower and each relevant Sharing Finance Party, an amount equal to the relevant
Redistributed Amount will be treated as not having been paid by the Borrower.

 

		26.5	Exceptions

 

		(a)	This Clause 26 shall not apply to the extent that the Recovering Finance Party would not, after
making any payment pursuant to this Clause, have a valid and enforceable claim against the Borrower.

 

		(b)	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which
the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

		(i)	it notified that other Finance Party of the legal or arbitration proceedings; and

 

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		(ii)	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings
but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

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SECTION 11

ADMINISTRATION

 

		27.	Payment Mechanics

 

		27.1	Payments to the Facility Agent

 

		(a)	On each date on which the Borrower or a Lender is required to make a payment under a Finance Document,
the Borrower or Lender shall make the same available to the Facility Agent (unless a contrary indication appears in a Finance Document)
for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement
of transactions in the relevant currency in the place of payment.

 

		(b)	Payment shall be made to such account in the principal financial centre of the country of that
currency with such bank as the Facility Agent specifies.

 

		27.2	Distributions by the Facility Agent

 

Each payment received by the Facility
Agent under the Finance Documents for another Party shall, subject to Clause 27.3 (Distributions to the Borrower) and Clause
27.4 (Clawback and pre-funding) be made available by the Facility Agent as soon as practicable after receipt to the Party
entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office),
to such account as that Party may notify to the Facility Agent by not less than five Business Days’ notice with a bank in
the principal financial centre of the country of that currency.

 

		27.3	Distributions to the Borrower

 

The Facility Agent may (with the
consent of the Borrower or in accordance with Clause 28 (Set-Off)) apply any amount received by it for the Borrower in or
towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under the Finance Documents
or in or towards purchase of any amount of any currency to be so applied.

 

		27.4	Clawback and pre-funding

 

		(a)	Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party,
the Facility Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract)
until it has been able to establish to its satisfaction that it has actually received that sum.

 

		(b)	Unless paragraph (c) below applies, if the Facility Agent pays an amount to another Party and it
proves to be the case that the Facility Agent had not actually received that amount, then the Party to whom that amount (or the
proceeds of any related exchange contract) was paid by the Facility Agent shall on demand refund the same to the Facility Agent
together with interest on that amount from the date of payment to the date of receipt by the Facility Agent, calculated by the
Facility Agent to reflect its cost of funds.

 

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		(c)	If the Facility Agent has notified the Lenders that it is willing to make available amounts for
the account of the Borrower before receiving funds from the Lenders then if and to the extent that the Facility Agent does so but
it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to the Borrower:

 

		(i)	the Facility Agent shall notify the Borrower of that Lender’s identity and the Borrower shall
on demand refund it to the Facility Agent; and

 

		(ii)	the Lender by whom those funds should have been made available or, if that Lender fails to do so,
the Borrower, shall on demand pay to the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the
Facility Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that
Lender.

 

		27.5	Impaired Agent

 

		(a)	If, at any time, the Facility Agent becomes an Impaired Agent, the Borrower or a Lender which is
required to make a payment under the Finance Documents to the Facility Agent in accordance with Clause ‎27.1
(Payments to the Facility Agent) may instead either:

 

		(i)	pay that amount direct to the required recipient(s); or

 

		(ii)	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount
direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with
an Acceptable Bank within the meaning of paragraph (a) of the definition of “Acceptable Bank” and in relation to which
no Insolvency Event has occurred and is continuing, in the name of the Borrower or the Lender making the payment (the “Paying
Party”) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment
under the Finance Documents (the “Recipient Party” or “Recipient Parties”).

 

In each case such
payments must be made on the due date for payment under the Finance Documents.

 

		(b)	All interest accrued on the amount standing to the credit of the trust account shall be for the
benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

 

		(c)	A Party which has made a payment in accordance with this Clause 27.5 shall be discharged of the
relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing
to the credit of the trust account.

 

		(d)	Promptly upon the appointment of a successor Facility Agent in accordance with Clause ‎24.12
(Replacement of the Facility Agent), each Paying Party shall (other than to the extent that that Party has given an instruction
pursuant

 

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			to paragraph (e) below) give all requisite instructions to the bank with whom the trust account
is held to transfer the amount (together with any accrued interest) to the successor Facility Agent for distribution to the relevant
Recipient Party or Recipient Parties in accordance with Clause ‎27.2 (Distributions
by the Facility Agent).

 

		(e)	A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

 

		(i)	that it has not given an instruction pursuant to paragraph (d) above; and

 

		(ii)	that it has been provided with the necessary information by that Recipient Party,

 

give all requisite
instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest)
to that Recipient Party.

 

		27.6	Partial payments

 

		(a)	If the Facility Agent receives a payment that is insufficient to discharge all the amounts then
due and payable by the Borrower under the Finance Documents, the Facility Agent shall apply that payment towards the obligations
of the Borrower 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 Facility
Agent under the Finance Documents;

 

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

 

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

 

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

 

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

 

		(c)	Paragraphs (a) and (b) above will override any appropriation made by the Borrower.

 

		27.7	No set-off by the Borrower

 

All payments to be made by the Borrower
under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

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		27.8	Business Days

 

		(a)	Any payment which is due to be made on a day that is not a Business Day shall be made on the next
Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

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

 

		27.9	Currency of account

 

		(a)	Subject to paragraphs (b) to (e) below, dollars is the currency of account and payment for any
sum due from the Borrower under any Finance Document.

 

		(b)	A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency
in which that Loan or Unpaid Sum is denominated on its due date.

 

		(c)	Each payment of interest shall be made in the currency in which the sum in respect of which the
interest is payable was denominated when that interest accrued.

 

		(d)	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the
costs, expenses or Taxes are incurred.

 

		(e)	Any amount expressed to be payable in a currency other than dollars shall be paid in that other
currency.

 

		27.10	Change of currency

 

		(a)	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same
time recognised by the central bank of any country as the lawful currency of that country, then:

 

		(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents
in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated
by the Facility Agent (after consultation with the Borrower); and

 

		(ii)	any translation from one currency or currency unit to another shall be at the official rate of
exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down
by the Facility Agent (acting reasonably).

 

		(b)	If a change in any currency of a country occurs, this Agreement will, to the extent the Facility
Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally
accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

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		27.11	Disruption to Payment Systems etc.

 

If either the Facility Agent determines
(in its discretion) that a Disruption Event has occurred or the Facility Agent is notified by the Borrower that a Disruption Event
has occurred:

 

		(a)	the Facility Agent may, and shall if requested to do so by the Borrower, consult with the Borrower
with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Facility Agent
may deem necessary in the circumstances;

 

		(b)	the Facility Agent shall not be obliged to consult with the Borrower in relation to any changes
mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have
no obligation to agree to such changes;

 

		(c)	the Facility Agent may consult with the Finance Parties in relation to any changes mentioned in
paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

		(d)	any such changes agreed upon by the Facility Agent and the Borrower shall (whether or not it is
finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be,
waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 33 (Amendments and Waivers);

 

		(e)	the Facility Agent shall not be liable for any damages, costs or losses whatsoever (including,
without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based
on the fraud of the Facility Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection
with this Clause 27.11; and

 

		(f)	the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph
(d) above.

 

		28.	Set-Off

 

A Finance Party may set off any matured
obligation due from the Borrower under the Finance Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to the Borrower, regardless of the place of payment, booking branch or currency of
either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market
rate of exchange in its usual course of business for the purpose of the set-off.

 

		29.	Notices

 

		29.1	Communications in writing

 

Any communication to be made under
or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.

 

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		29.2	Addresses

 

The address and fax number (and the
department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document
to be made or delivered under or in connection with the Finance Documents is:

 

		(a)	in the case of the Borrower, that identified with its name below;

 

		(b)	in the case of each Lender, that notified in writing to the Facility Agent on or prior to the date
on which it becomes a Party; and

 

		(c)	in the case of the Facility Agent, that identified with its name below,

 

or any substitute address or fax
number or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties,
if a change is made by the Facility Agent) by not less than five Business Days’ notice.

 

		29.3	Delivery

 

		(a)	Any communication or document made or delivered by one person to another under or in connection
with the Finance Documents will only be effective:

 

		(i)	if by way of fax, when received in legible form; or

 

		(ii)	if by way of letter, when it has been left at the relevant address or five Business Days after
being deposited in the post postage prepaid in an envelope addressed to it at that address;

 

and, if a particular department or
officer is specified as part of its address details provided under Clause 29.2 (Addresses), if addressed to that department
or officer.

 

		(b)	Any communication or document to be made or delivered to the Facility Agent will be effective only
when actually received by the Facility Agent and then only if it is expressly marked for the attention of the department or officer
identified with the Facility Agent’s signature below (or any substitute department or officer as the Facility Agent shall
specify for this purpose).

 

		(c)	All notices from or to the Borrower shall be sent through the Facility Agent.

 

		(d)	Any communication or document made or delivered to the Borrower in accordance with this Clause
will be deemed to have been made or delivered to the Borrower.

 

		(e)	Any communication or document which becomes effective, in accordance with paragraphs (a) to (d)
above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

 

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		29.4	Notification of address and fax number

 

Promptly upon receipt of notification
of an address or fax number or change of address or fax number pursuant to Clause 29.2 (Addresses) or changing its own address
or fax number, the Facility Agent shall notify the other Parties.

 

		29.5	Communication when Facility Agent is Impaired Agent

 

If
the Facility Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Facility Agent, communicate
with each other directly and (while the Facility Agent is an Impaired Agent) all the provisions of the Finance Documents which
require communications to be made or notices to be given to or by the Facility Agent shall be varied so that communications may
be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Facility
Agent has been appointed.

 

		29.6	Electronic communication

 

		(a)	Any communication to be made between any two Parties under or in connection with the Finance Documents
may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless and until notified
to the contrary, this is to be an accepted form of communication and if those two Parties:

 

		(i)	notify each other in writing of their electronic mail address and/or any other information required
to enable the sending and receipt of information by that means; and

 

		(ii)	notify each other of any change to their address or any other such information supplied by them
by not less than five Business Days’ notice.

 

		(b)	Any electronic communication made between those two Parties will be effective only when actually
received in readable form and in the case of any electronic communication made by a Party to the Facility Agent only if it is addressed
in such a manner as the Facility Agent shall specify for this purpose.

 

		(c)	Any electronic communication which becomes effective, in accordance with paragraph (b) above, after
5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

 

		29.7	English language

 

		(a)	Any notice given under or in connection with any Finance Document must be in English.

 

		(b)	All other documents provided under or in connection with any Finance Document must be:

 

		(i)	in English; or

 

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		(ii)	if not in English, and if so required by the Facility Agent, accompanied by a certified English
translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other
official document.

 

		30.	Calculations and Certificates

 

		30.1	Accounts

 

In any litigation or arbitration
proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party
are prima facie evidence of the matters to which they relate.

 

		30.2	Certificates and Determinations

 

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

 

		30.3	Day count convention

 

Any interest, commission or fee accruing
under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a
year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

		31.	Partial Invalidity

 

If, at any time, any provision of
the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither
the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision
under the law of any other jurisdiction will in any way be affected or impaired.

 

		32.	Remedies and Waivers

 

No failure to exercise, nor any delay
in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver of any
such right or remedy or constitute an election to affirm any of the Finance Documents. No election to affirm any of the Finance
Documents on the part of any Finance Party shall be effective unless it is in writing. No single or partial exercise of any right
or remedy shall prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided
in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

		33.	Amendments and Waivers

 

		33.1	Required consents

 

		(a)	Subject to Clause 33.2 (Exceptions) any term of the Finance Documents may be amended or
waived only with the consent of the Majority Lenders and the Borrower and any such amendment or waiver will be binding on all Parties.

 

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		(b)	The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted
by this Clause 33.

 

		33.2	Exceptions

 

		(a)	An amendment or waiver that has the effect of changing or which relates to:

 

		(i)	the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

		(ii)	an extension to the date of payment of any amount under the Finance Documents;

 

		(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees
or commission payable;

 

		(iv)	an increase in or an extension of any Commitment or any requirement that a cancellation of Commitments
reduces the Commitments of the Lenders rateably under the Facility;

 

		(v)	Clause 23 (Changes to the Borrower);

 

		(vi)	any provision which expressly requires the consent of all the Lenders; or

 

		(vii)	Clause 2.3 (Finance Parties’ rights and obligations), Clause 3.1 (Purpose),
Clause 13 (Increased Costs), Clause 22 (Changes to the Lenders), Clause 36 (Governing Law), Clause 37
(Enforcement) or this Clause 33,

 

shall not be made without the prior
consent of all the Lenders.

 

		(b)	An amendment or waiver which relates to the rights or obligations of the Facility Agent or the
Arranger (each in their capacity as such) may not be effected without the consent of the Facility Agent or, as the case may be,
the Arranger.

 

		33.3	Excluded Commitments

 

		(a)	If any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in
relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within ten Business
Days of that request being made, (unless, the Borrower and the Facility Agent agree to a longer time period in relation to any
request):

 

		(i)	its Commitment(s) shall not be included for the purpose of calculating the Total Commitments under
the Facility when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments
has been obtained to approve that request; and

 

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		(ii)	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement
of any specified group of Lenders has been obtained to approve that request.

 

		33.4	Disenfranchisement of Defaulting Lenders

 

		(a)	For so long as a Defaulting Lender has any Available Commitment, in ascertaining:

 

		(i)	the Majority Lenders; or

 

		(ii)	whether:

 

		(A)	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments
under the relevant Facility; or

 

		(B)	the agreement of any specified group of Lenders,

 

has
been obtained to approve any request for a consent, waiver, amendment or other vote of Lenders under the Finance Documents, 

 

that
Defaulting Lender’s Commitments under the Facility will be reduced by the amount of its Available Commitments under the Facility
and, to the extent that that reduction results in that Defaulting Lender’s Total Commitments being zero, that Defaulting
Lender shall be deemed not to be a Lender for the purposes of paragraphs (i) and (ii) above.

 

		(b)	For the purposes of this Clause 33.4, the Facility Agent may assume that the following Lenders
are Defaulting Lenders:

 

		(i)	any Lender which has notified the Facility Agent that it has become a Defaulting Lender;

 

		(ii)	any Lender in relation to which it is aware that any of the events or circumstances referred to
in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,

 

unless it has received
notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Facility Agent)
or the Facility Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

		33.5	Replacement of a Defaulting Lender

 

		(a)	The Borrower may, at any time a Lender has become and continues to be a Defaulting Lender, by giving
ten Business Days’ prior written notice to the Facility Agent and such Lender:

 

		(i)	replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender
shall) transfer pursuant to Clause ‎22

 

    	- 95-

    	 

    

 

			(Changes to the Lenders) all (and not part only) of its rights and obligations under this
Agreement;

 

		(ii)	require such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant
to Clause ‎22 (Changes to the Lenders) all (and not part only) of the undrawn Facility
Commitment of the Lender; or

 

		(iii)	require such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant
to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations in respect of the Facility,

 

to a Lender or other
bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by the Borrower and
which confirms its willingness to assume and does assume all the obligations, or all the relevant obligations, of the transferring
Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer
which is either:

 

		(A)	in an amount equal to the outstanding principal amount of such Lender’s participation in
the outstanding Utilisations and all accrued interest (to the extent that the Facility Agent has not given a notification under
Clause 22.9 (Pro rata interest settlement)), Break Costs and other amounts payable in relation thereto under the Finance
Documents; or

 

		(B)	in an amount agreed between that Defaulting Lender, the Replacement Lender and the Borrower and
which does not exceed the amount described in paragraph (A) above.

 

		(b)	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause ‎33.5
shall be subject to the following conditions:

 

		(i)	the Borrower shall have no right to replace the Facility Agent;

 

		(ii)	neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Borrower
to find a Replacement Lender;

 

		(iii)	the transfer must take place no later than five Business Days after the notice referred to in paragraph
(a) above;

 

		(iv)	in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender
any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and

 

		(v)	the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to
paragraph (a) above once it is satisfied that it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations in relation to that transfer to the Replacement Lender.

 

    	- 96-

    	 

    

 

		(c)	The Defaulting Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably
practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Facility Agent and the Borrower
when it is satisfied that it has complied with those checks.

 

		34.	Confidentiality

 

		34.1	Confidential Information

 

Each Finance Party agrees to keep
all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 34.2 (Disclosure
of Confidential Information) and Clause 34.3 (Disclosure to numbering service providers), and to ensure that all Confidential
Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

		34.2	Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

		(a)	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees,
professional advisers, auditors, partners and Representatives or to any insurers or insurance brokers and service providers such
Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is
to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential
Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is
subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of
confidentiality in relation to the Confidential Information;

 

		(b)	to any person:

 

		(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any
of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as
Facility Agent and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

		(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly,
any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference
to, one or more Finance Documents and/or the Borrower and to any of that person’s Affiliates, Related Funds, Representatives
and professional advisers;

 

		(iii)	appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to
receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including,
without limitation, any person

 

    	- 97-

    	 

    

 

			appointed under paragraph (b) of Clause 24.14 (Relationship with the Lenders));

 

		(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly
or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

 

		(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction
or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange
or pursuant to any applicable law or regulation;

 

		(vi)	to whom information is required to be disclosed in connection with, and for the purposes of, any
litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

		(vii)	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security
(or may do so) pursuant to Clause ‎22.8 (Security over Lenders’ rights);

 

		(viii)	who is a Party; or

 

		(ix)	with the consent of the Borrower;

 

in each case, such Confidential Information
as that Finance Party shall consider appropriate if:

 

		(A)	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential
Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality
Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality
of the Confidential Information;

 

		(B)	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be
given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive
information;

 

		(C)	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential
Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be
price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it
is not practicable so to do in the circumstances;

 

    	- 98-

    	 

    

 

		(c)	to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii)
above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without
limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as
may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c)
if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially
in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other
form of confidentiality undertaking agreed between the Borrower and the relevant Finance Party;

 

		(d)	to any rating agency (including its professional advisers) or any direct or indirect provider of
credit protection to a Finance Party or any of its Affiliates such Confidential Information as may be required to be disclosed
to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Borrower.

 

		34.3	Disclosure to numbering service providers

 

		(a)	Any Finance Party may disclose to any national or international numbering service provider appointed
by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or the Borrower
the following information:

 

		(i)	names of Borrower;

 

		(ii)	country of domicile of Borrower;

 

		(iii)	place of incorporation of Borrower;

 

		(iv)	date of this Agreement;

 

		(v)	Clause 36 (Governing Law);

 

		(vi)	the names of the Facility Agent and the Arranger;

 

		(vii)	date of each amendment and restatement of this Agreement;

 

		(viii)	amount of Total Commitments;

 

		(ix)	currencies of the Facility;

 

		(x)	type of Facility;

 

		(xi)	ranking of Facility;

 

		(xii)	Termination Date for Facility;

 

		(xiii)	changes to any of the information previously supplied pursuant to paragraphs (i) to (xii) above;
and

 

    	- 99-

    	 

    

 

		(xiv)	such other information agreed between such Finance Party and the Borrower,

 

to enable such numbering service provider
to provide its usual syndicated loan numbering identification services.

 

		(b)	The Parties acknowledge and agree that each identification number assigned to this Agreement, the
Facility and/or the Borrower by a numbering service provider and the information associated with each such number may be disclosed
to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

		(c)	The Borrower represents that none of the information set out in paragraphs (i) to (xiv) of paragraph
(a) above is, nor will at any time be, unpublished price-sensitive information.

 

		(d)	The Facility Agent shall notify the Borrower and the other Finance Parties of:

 

		(i)	the name of any numbering service provider appointed by the Facility Agent in respect of this Agreement,
the Facility and/or the Borrower; and

 

		(ii)	the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or the
Borrower by such numbering service provider.

 

		34.4	Entire agreement

 

This Clause 34 constitutes the entire
agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential
Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

		34.5	Inside information

 

Each of the Finance Parties acknowledges
that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information
may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse
and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

		34.6	Notification of disclosure

 

Each of the Finance Parties agrees
(to the extent permitted by law and regulation) to inform the Borrower:

 

		(a)	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v)
of Clause 34.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred
to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

    	- 100-

    	 

    

 

		(b)	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 34.

 

		34.7	Continuing obligations

 

The obligations in this Clause 34
are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the
earlier of:

 

		(a)	the date on which all amounts payable by the Borrower under or in connection with this Agreement
have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

		(b)	the date on which such Finance Party otherwise ceases to be a Finance Party.

 

		35.	Counterparts

 

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

 

    	- 101-

    	 

    

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

 

		36.	Governing Law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it are governed by English law.

 

		37.	Enforcement

 

		37.1	Jurisdiction

 

		(a)	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection
with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual
obligation arising out of or in connection with this Agreement) (a “Dispute”).

 

		(b)	The Parties agree that the courts of England are the most appropriate and convenient courts to
settle Disputes and accordingly no Party will argue to the contrary.

 

		(c)	This Clause 37.1 is for the benefit of the Finance Parties only. As a result, no Finance Party
shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by
law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

		37.2	Service of process

 

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

 

		(a)	irrevocably appoints Randgold Resources (UK) Limited of 1st Floor, 2 Savoy Court, Strand,
London WC2R 0EZ as its agent for service of process in relation to any proceedings before the English courts in connection with
any Finance Document; and

 

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

 

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

 

    	- 102-

    	 

    

 

Schedule
1

The
Original Lenders

 

	Name of Original Lender	 	Commitment (USD)	 
	 	 	 	 
	HSBC Bank USA, N.A.	 	 	100,000,000.00	 
	 	 	 	 	 
	Citibank N.A. London Branch	 	 	60,000,000.00	 
	 	 	 	 	 
	Standard Chartered Bank	 	 	60,000,000.00	 
	 	 	 	 	 
	Absa Bank Limited	 	 	60,000,000.00	 
	 	 	 	 	 
	Bank of Montreal, London Branch	 	 	40,000,000.00	 
	 	 	 	 	 
	Scotiabank Europe plc	 	 	40,000,000.00	 
	 	 	 	 	 
	Société Générale, London Branch	 	 	40,000,000.00	 
	 	 	 	 	 
	TOTAL	 	 	400,000,000.00	 

 

    	- 103-

    	 

    

  

Schedule
2

Conditions
Precedent

 

		1.	The Borrower

 

		(a)	A copy of the constitutional documents of the Borrower.

 

		(b)	A copy of a resolution of the board of directors of the Borrower (or an extract thereof):

 

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

 

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

 

		(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents
and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with
the Finance Documents to which it is a party,

 

substantially in the form agreed prior
to the date of this Agreement.

 

		(c)	A specimen of the signature of each person authorised by the resolution referred to in paragraph
(b) above.

 

		(d)	A certificate of the Borrower (signed by a director or a duly authorised company secretary) confirming
that borrowing the Total Commitments would not cause any borrowing or similar limit binding on the Borrower to be exceeded.

 

		(e)	A certificate signed by a director or a duly authorised company secretary of the Borrower certifying
that each copy document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date
no earlier than the date of this Agreement.

 

		2.	Finance Documents

 

Each of the following documents executed
by each party to it:

 

		(a)	this Agreement; and

 

		(b)	any Fee Letter.

 

		3.	Legal opinions

 

		(a)	A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Facility Agent in
England, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

    	- 104-

    	 

    

  

		(b)	A legal opinion of Bedell Cristin London Partnership, legal advisers to the Arranger and the Facility
Agent in Jersey, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

		4.	Other documents and evidence

 

		(a)	Evidence that any process agent referred to in Clause 37.2 (Service of process) has accepted
its appointment.

 

		(b)	Confirmation from the Facility Agent that all documents required by the Finance Parties from the
Borrower or such other person for completion by the Finance Parties of all necessary “know your customer” compliance
requirements have been provided.

 

		(c)	A copy of any other Authorisation or other document, opinion or assurance which the Facility Agent
reasonably specifies (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions
contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

 

		(d)	The Original Financial Statements of the Borrower.

 

		(e)	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 11 (Fees)
and Clause 16 (Costs and Expenses) have been paid or will be paid by the first Utilisation Date.

 

		(f)	The Group Structure Chart.

 

		(g)	Evidence that the Existing Facility has been, or will, on the first Utilisation Date be, irrevocably
prepaid and cancelled in full.

 

    	- 105-

    	 

    

  

Schedule
3

Requests

 

Utilisation Request

 

		From:	Randgold Resources Limited

 

		To:	HSBC Bank plc

 

Dated:

 

Dear Sirs

 

Randgold Resources Limited – USD400,000,000
facility agreement

dated [●] 2014 (the “Agreement”)

 

		1.	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the
same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

		(1)	We wish to borrow a Loan on the following terms:

 

	 	Proposed Utilisation Date:	[         ] (or, if that is not a Business Day, the next Business Day)
	 	Currency of Loan:	Dollars
	 	Amount:	[         ] or, if less, the Available Facility
	 	Interest Period:	[             ] months

 

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

 

		3.	The proceeds of this Loan should be credited to [account].

 

		4.	This Utilisation Request is irrevocable.

 

	Yours faithfully
	 
	 
	authorised signatory for
	Randgold Resources Limited

 

    	- 106-

    	 

    

  

Schedule
4

Form
of Transfer Certificate

 

		To:	HSBC Bank plc as Facility Agent

 

		From:	[The Existing Lender] (the “Existing Lender”)
and [The New Lender] (the “New Lender”)

 

Dated:

 

Randgold Resources Limited – USD400,000,000
facility agreement

dated [●] 2014 (the “Agreement”)

 

		1.	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have
the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

 

		2.	We refer to Clause 22.5 (Procedure for transfer):

 

		(a)	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender
by novation, and in accordance with Clause 22.5 (Procedure for transfer), all of the Existing Lender’s rights and
obligations under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment
and participations in Loans under the Agreement as specified in the Schedule.

 

		(b)	The proposed Transfer Date is [●].

 

		(c)	The Facility Office and address, fax number and attention details for notices of the New Lender
for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

 

		3.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in paragraph (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders).

 

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

 

		5.	This Transfer Certificate and any non-contractual obligations arising out of or in connection with
it are governed by English law.

 

		6.	This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer
Certificate.

 

    	- 107-

    	 

    

  

THE SCHEDULE

 

Commitment/rights and obligations to be
transferred

 

[insert relevant details]

[Facility Office address, fax number and
attention details for notices and account details for  payments,]

 

	[Existing Lender]	[New Lender]
	 	 
	By:	By:

 

This Transfer Certificate is accepted
by the Facility Agent and the Transfer Date is confirmed as [           ].

 

[Facility Agent]

 

By:

 

    	- 108-

    	 

    

 

Schedule
5

Form
Of Assignment Agreement

 

		To:	HSBC Bank plc as Facility Agent and Randgold Resources
Limited as Borrower

 

		From:	[the Existing Lender] (the “Existing Lender”)
and [the New Lender] (the “New Lender”)

 

Dated:

 

Randgold Resources Limited – USD400,000,000
facility agreement

dated [●] 2014 (the “Agreement”)

 

		1.	We refer to the Agreement. This is an Assignment Agreement. Terms defined in the Agreement have
the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

 

		2.	We refer to Clause 22.6 (Procedure for assignment):

 

		(a)	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender
under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment and
participations in Loans under the Agreement as specified in the Schedule.

 

		(b)	The Existing Lender is released from all the obligations of the Existing Lender which correspond
to that portion of the Existing Lender’s Commitment and participations in Loans under the Agreement specified in the Schedule.

 

		(c)	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from
which the Existing Lender is released under paragraph (b) above.

 

		3.	The proposed Transfer Date is [●].

 

		4.	On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

 

		5.	The Facility Office and address, fax number and attention details for notices of the New Lender
for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

 

		6.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in paragraph (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders).

 

		7.	This Assignment Agreement acts as notice to the Facility Agent (on behalf of each Finance Party)
and, upon delivery in accordance with Clause 22.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation
to Borrower), to the Borrower of the assignment referred to in this Assignment Agreement.

 

    	- 109-

    	 

    

  

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

 

		9.	This Assignment Agreement and any non-contractual obligations arising out of or in connection with
it are governed by English law.

 

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

 

    	- 110-

    	 

    

  

THE SCHEDULE

 

Rights to be assigned and obligations to
be released and undertaken

 

[insert relevant details]

 

[Facility office address, fax number and
attention details for notices and account details for payments]

 

	[Existing Lender]	[New Lender]
	 	 
	By:	By:

 

This Assignment Agreement is accepted by the
Facility Agent and the Transfer Date is confirmed as [●].

 

Signature of this Assignment Agreement by the
Facility Agent constitutes confirmation by the Facility Agent of receipt of notice of the assignment referred to herein, which
notice the Facility Agent receives on behalf of each Finance Party.

 

[Facility Agent]

 

By:

 

    	- 111-

    	 

    

 

Schedule
6

Form
of Compliance Certificate

 

		To:	HSBC Bank plc as Facility Agent

 

		From:	Randgold Resources Limited as the Borrower

 

Dated:

 

Dear Sirs

 

Randgold Resources Limited – USD400,000,000
facility agreement

dated [●] 2014 (the “Agreement”)

 

		1.	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have
the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

		2.	We confirm that:

 

		(a)	[insert details of covenants to be certified];

 

		(b)	[●].1

 

		3.	[We confirm that no Default is continuing.]*

 

	Signed:	 	 
	 	Authorised signatory for

 Randgold Resources Limited	 

 

 

		1	Confirmation details to be confirmed by Facility Agent.

		*	If this statement cannot be made, the certificate should identify any Default that is continuing
and the steps, if any, being taken to remedy it.

 

    	- 112-

    	 

    

 

Schedule
7

Timetables

 

	 	 	Loans in dollars
	 	 	 
	Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request))	 	U-3, 9.30 a.m.
	 	 	 
	Facility Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders’ participation)	 	U-3, 5.00 p.m.
	 	 	 
	LIBOR is fixed	 	Quotation Day as 

of 11:00 a.m.

 

    	- 113-

    	 

    

 

Schedule
8

Form
of Increase Confirmation

 

		To:	[●] as Facility Agent and Randgold Resources Limited as the Borrower

 

		From:	[the Increase Lender] (the “Increase Lender”)

 

		Dated:	

 

Randgold Resources Limited – USD400,000,000
facility agreement

dated
[●] 2014 (the “Facility Agreement”)

 

		1.	We refer to the Facility Agreement. This agreement (the “Agreement”) shall take
effect as an Increase Confirmation for the purpose of the Facility Agreement. Terms defined in the Facility Agreement have the
same meaning in this Agreement unless given a different meaning in this Agreement.

 

		2.	We refer to clause 2.2 (Increase) of the Facility Agreement.

 

		3.	The Increase Lender agrees to assume and will assume all of the obligations corresponding to the
Commitment specified in the Schedule (the “Relevant Commitment”) as if it was an Original Lender under the Facility
Agreement.

 

		4.	The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment
is to take effect (the “Increase Date”) is [●].

 

		5.	On the Increase Date, the Increase Lender becomes party to the relevant Finance Documents as a
Lender.

 

		6.	The Facility Office and address, fax number and attention details for notices to the Increase Lender
for the purposes of Clause 29.2 (Addresses) are set out in the Schedule.

 

		7.	The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations referred
to in paragraph (g) of Clause 2.2 (Increase).

 

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

 

		9.	This Agreement and any non-contractual obligations arising out of or in connection with it are
governed by English law.

 

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

 

    	- 114-

    	 

    

  

THE SCHEDULE

 

Relevant
Commitment/rights and obligations to be assumed by the Increase Lender

 

[insert
relevant details]

 

[Facility
office address, fax number and attention details for notices and account details for payments]

 

[Increase
Lender]

 

By:

 

This Agreement is accepted as an Increase Confirmation
for the purposes of the Facility Agreement by the Facility Agent and the Increase Date is confirmed as [●].

 

Facility
Agent

 

By:

 

    	- 115-

    	 

    

  

SIGNATURES

 

THE BORROWER

 

	RANDGOLD RESOURCES LIMITED
	 	 
	By:	/s/ Graham Shuttleworth
	 	 
	Address: 	Randgold Resources Limited
	 	3rd Floor, Unity Chambers
	 	28 Halkett Street
	 	St Helier 
	 	Jersey JE2 4WJ
	 	 
	Fax:	01534 735 444
	 	 
	Tel:	01534 735 333
	 	 
	Email: 	legal@randgoldresources.com 
	 	 
	Attention:	Martin Welsh

 

    	- 116-

    	 

    

 

THE ARRANGER

 

	HSBC BANK PLC
	 	 
	By:	/s/ John Haire
	 	 
	Address:	Floor 2, Leverage and Acquisition Finance
	 	8 Canada Square
	 	London 
	 	E14 5HQ
	 	 
	Fax:	 +44 207 7992 4991
	 	 
	Email: 	 john.haire@hsbcib.com
	 	 
	Attention: 	 John Haire

 

    	- 117-

    	 

    

 

THE FACILITY AGENT

 

	HSBC BANK PLC
	 	 
	By:	/s/ [illegible signature]
	 	 
	Address:	Corporate Trust & Loan Agency, Level 27
	 	8 Canada Square
	 	London E14 5HQ
	 	 
	Fax:	+44 (0) 20 7991 4347
	 	 
	Attention: 	Loan Agency Operations

 

    	- 118-

    	 

    

 

THE ORIGINAL LENDERS

 

HSBC
Bank USA, N.A.

 

	By:	/s/ Adam Hendley

 

Citibank,
N.A. London Branch

 

	By:	/s/ Lorenzo Ravelli
	 	       Vice President

 

Standard
Chartered Bank

 

	By:	/s/ Hiren Singharay
	 	      Managing Director & Head of Sydications
	 	      Europe
	 	      Standard Chartered Bank

 

Absa
Bank Limited

 

	By:	/s/Anthony Sam	/s/Amitha Chetty
	 	      Authorized	      Authorized

 

Bank
of Montreal, London Branch

 

	By:	/s/ Tony Ebdon	/s/ Andy McClinton
	 	       MD	       MD

 

Scotiabank
Europe plc

 

	By:	/s/ [illegible signature]	/s/ [illegible signature]

 

SociETE
GENERALE, London Branch

 

	By:	/s/ [illegible signature]

 

    	- 119-ex10-1.htm

 

Exhibit 10.1

 

 

 

 

 

 

 

 

 

AGREEMENT AND PLAN OF MERGER

dated as of March 30, 2015

by and among

SELECTICA, INC., a Delaware corporation,

SELECTICA FRANCE SAS, a French société par actions simplifiée,

 

B-PACK SAS, a French société par actions simplifiée,

 

and

THE SHAREHOLDERS OF B-PACK SAS
LISTED ON THE SIGNATURE PAGES HERETO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

 

Page

 

 

	
ARTICLE I THE MERGER
	
2

	 	 
	 	
Section 1.1
	
The Merger.
	
2

	 	
Section 1.2
	
Effective Time. 
	
2

	 	
Section 1.3
	
Closing of the Merger.
	
2

	 	
Section 1.4
	
Effects of the Merger.
	
2

	 	
Section 1.5
	
Directors and Officers.
	
2

	 	
Section 1.6
	
Organizational Documents.
	
3

	 	 
	
ARTICLE II CONVERSION OF SECURITIES
	
3

	 	 
	 	
Section 2.1
	
Effect on Capital Stock.
	
3

	 	
Section 2.2
	
Working Capital Adjustment.
	
4

	 	
Section 2.3
	
Merger; Exchange Procedures.
	
5

	 	
Section 2.4
	
Withholding Rights.
	
5

	 	
Section 2.5
	
Tax Treatment of Merger.
	
5

	 	 	 	 
	
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	
6

	 	 
	 	
Section 3.1
	
Organization, Etc.
	
6

	 	
Section 3.2
	
Capitalization.
	
6

	 	
Section 3.3
	
Company’s Subsidiaries.
	
7

	 	
Section 3.4
	
Authority Relative to this Agreement. 
	
7

	 	
Section 3.5
	
Consents and Approvals; No Violations.
	
7

	 	
Section 3.6
	
Financial Statements. 
	
8

	 	
Section 3.7
	
No Undisclosed Liabilities.
	
8

	 	
Section 3.8
	
Absence of Certain Changes.
	
8

	 	
Section 3.9
	
Compliance with Law.
	
9

	 	
Section 3.10
	
Material Contracts.
	
9

	 	
Section 3.11
	
Permits.
	
10

	 	
Section 3.12
	
Litigation.
	
10

	 	
Section 3.13
	
Taxes. 
	
10

	 	
Section 3.14
	
Title to Properties; Sufficiency of Assets.
	
13

	 	
Section 3.15
	
Intellectual Property.
	
13

	 	
Section 3.16
	
Insurance.
	
15

	 	
Section 3.17
	
Environmental Matters.
	
16

	 	
Section 3.18
	
Employee and Labor Matters. 
	
17

	 	
Section 3.19
	
Employee Plans.
	
18

	 	
Section 3.20
	
Brokers and Finders.
	
19

	 	
Section 3.21
	
Shareholder Vote Required.
	
20

	 	
Section 3.22
	
Absence of Questionable Payments.
	
20

	 	
Section 3.23
	
Bank Accounts; Powers of Attorney.
	
20

 

 

- i -

 

 

Table of Contents

(continued)

 

Page

 

	 	
Section 3.24
	
Customers and Suppliers.
	
20

	 	
Section 3.25
	
Accounts Receivable. 
	
20

	 	
Section 3.26
	
Certain Transactions.
	
21

	 	
Section 3.27
	
Proxy Statement. 
	
21

	 	
Section 3.28
	
No Other Representations or Warranties.
	
21

	 	
Section 3.29
	
Disclosure.
	
21

	 	 	 	 
	
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS
	
22

	 	 
	 	
Section 4.1
	
Ownership of Shares.
	
22

	 	
Section 4.2
	
Authority Relative to this Agreement.
	
22

	 	
Section 4.3
	
Consents and Approvals; No Violations.
	
22

	 	
Section 4.4
	
Litigation.
	
23

	 	
Section 4.5
	
Brokers and Finders.
	
23

	 	
Section 4.6
	
Investment Representations.
	
23

	 	 	 	 
	
ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	
24

	 	 
	 	
Section 5.1
	
Corporate Organization, Etc.
	
24

	 	
Section 5.2
	
Capitalization. 
	
24

	 	
Section 5.3
	
Authority Relative to this Agreement.
	
25

	 	
Section 5.4
	
Consents and Approvals; No Violations. 
	
25

	 	
Section 5.5
	
Litigation.
	
26

	 	
Section 5.6
	
Brokers and Finders.
	
26

	 	
Section 5.7
	
Sufficient Funds.
	
26

	 	
Section 5.8
	
Solvency. 
	
26

	 	
Section 5.9
	
Investigation.
	
27

	 	
Section 5.10
	
SEC Filings; Financial Statements.
	
27

	 	
Section 5.11
	
Absence of Certain Changes or Events.
	
28

	 	
Section 5.12
	
No Merger Sub Business Activities.
	
28

	 	
Section 5.13
	
Proxy Statement.
	
28

	 	
Section 5.14
	
No Other Representations or Warranties.
	
28

	 	 	 	 
	
ARTICLE VI COVENANTS
	
28

	 	 
	 	
Section 6.1
	
Conduct of the Business of the Company Pending the Closing. 
	
28

	 	
Section 6.2
	
Access to Information.
	
30

	 	
Section 6.3
	
Disclosure Supplements.
	
31

	 	
Section 6.4
	
Consents and Approvals.
	
31

	 	
Section 6.5
	
Filings.
	
31

	 	
Section 6.6
	
Further Assurances.
	
31

	 	
Section 6.7
	
Appointments.
	
32

 

 

- ii -

 

 

Table of Contents

(continued)

 

Page 

 

	 	
Section 6.8
	
Conduct of the Business of Parent Pending the Closing.
	
32

	 	
Section 6.9
	
Proxy Statement.
	
33

	 	 	 	 
	
ARTICLE VII ADDITIONAL AGREEMENTS
	
33

	 	 
	 	
Section 7.1
	
Acquisition Proposals.
	
33

	 	
Section 7.2
	
Public Announcements.
	
34

	 	
Section 7.3
	
Indemnification.
	
34

	 	
Section 7.4
	
Notification of Certain Matters.
	
39

	 	
Section 7.5
	
Non-Competition. 
	
39

	 	
Section 7.6
	
Employee Matters.
	
40

	 	
Section 7.7
	
Tax Covenants.
	
41

	 	
Section 7.8
	
Shareholders’ Agent.
	
43

	 	
Section 7.9
	
U.S. Restructuring.
	
45

	 	 	 	 
	
ARTICLE VIII CONDITIONS TO CONSUMMATION OF THE MERGER
	
45

	 	 
	 	
Section 8.1
	
Conditions to Each Party’s Obligations to Effect the Merger. 
	
45

	 	
Section 8.2
	
Conditions to the Obligations of Parent and Merger Sub. 
	
46

	 	
Section 8.3
	
Conditions to the Obligations of the Company and the Shareholders. 
	
47

	 	
Section 8.4
	
Closing Deliveries. 
	
48

	 	 	 	 
	
ARTICLE IX TERMINATION
	
48

	 	 
	 	
Section 9.1
	
Termination by Mutual Agreement.
	
48

	 	
Section 9.2
	
Termination by either Parent or Company. 
	
48

	 	
Section 9.3
	
Termination by the Company.
	
49

	 	
Section 9.4
	
Termination by Parent.
	
49

	 	
Section 9.5
	
Effect of Termination and Abandonment.
	
49

	 	 	 	 
	
ARTICLE X MISCELLANEOUS
	
49

	 	 
	 	
Section 10.1
	
Entire Agreement; Assignment.
	
49

	 	
Section 10.2
	
Notices. 
	
50

	 	
Section 10.3
	
Governing Law; Jurisdiction; Waiver of Jury Trial.
	
51

	 	
Section 10.4
	
Expenses.
	
51

	 	
Section 10.5
	
Descriptive Headings.
	
52

	 	
Section 10.6
	
Parties in Interest.
	
52

	 	
Section 10.7
	
Severability.
	
52

	 	
Section 10.8
	
Specific Performance.
	
52

	 	
Section 10.9
	
Counterparts.
	
52

	 	
Section 10.10
	
Interpretation.
	
52

	 	
Section 10.11
	
Amendment and Modification; Waiver.
	
53

	 	
Section 10.12
	
Definitions. 
	
53

 

 

- iii -

 

 

Table of Contents

(continued)

 

Page

 

INDEX OF EXHIBITS

 

Exhibit A – Registration Rights Agreement

 

Exhibit B – Employment Agreement between Parent and Julien Nadaud

 

Exhibit C – Employment Agreement between the Surviving Entity and Xavier Pierre-Bez

 

Exhibit D – Employment Agreement between the Surviving Entity and Bruno Charrat

 

 

 

COMPANY DISCLOSURE SCHEDULES

 

	
2.1(c)
	
Allocation of Merger Consideration

	
3.1
	
Organization, Etc.

	
3.2
	
Capitalization

	
3.3
	
Company’s Subsidiaries

	
3.5
	
Consents and Approvals; No Violations

	
3.6
	
Financial Statements

	
3.7
	
No Undisclosed Liabilities; Indebtedness

	
3.8
	
Absence of Certain Changes

	
3.10
	
Material Contracts

	
3.12
	
Litigation

	
3.13
	
Taxes

	
3.14
	
Title to Properties; Sufficiency of Assets

	
3.15
	
Intellectual Property

	
3.16
	
Insurance

	
3.18
	
Employee and Labor Matters

	
3.19
	
Employee Plans

	
3.23
	
Bank Accounts; Powers of Attorney

	
3.24
	
Customers and Suppliers

	
3.25
	
Accounts Receivable

	
3.26
	
Affiliate Transactions

	
6.6(d)
	
b-pack Services Share Sale

 

 

- iv -

 

 

Table of Contents

(continued)

 

Page

 

	
8.1(c)
	
Pending or Threatened Actions

	
8.2(e)
	
Company Consents

	
8.2(i)
	
Agreements to be Terminated

	
10.12
	
Company Accounting Principles

 

 

 

PARENT DISCLOSURE SCHEDULE

 

 

	
1.5
	
Officers and Directors of Surviving Entity

	
5.4
	
Parent Consents

 

 

- v -

 

 

AGREEMENT AND PLAN OF MERGER

 

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of March 30, 2015, is by and among Selectica, Inc., a Delaware corporation (“Parent”), Selectica France SAS, a French société par actions simplifiée (pending incorporation) and wholly-owned subsidiary of Parent (“Merger Sub”), b-pack SAS, a French société par actions simplifiée (the “Company”), and the shareholders of the Company listed on the signature pages hereto (each, a “Shareholder” and, collectively, the “Shareholders”). Certain capitalized terms used herein are defined in Section 10.13. 

 

RECITALS

 

WHEREAS, each of the parties hereto desires Merger Sub to consummate a business combination with the Company in a transaction whereby, upon the terms and subject to the conditions set forth in this Agreement, the Company will merge with and into Merger Sub (the “Merger”), and the outstanding common shares of the Company (the “Company Common Shares”) will be automatically converted into the right to receive the Merger Consideration, as provided herein, and Merger Sub will be the surviving entity in the Merger and, following the Share Exchange (as hereinafter defined), will continue as a wholly-owned subsidiary of Parent; 

 

WHEREAS, the management and the shareholders of the Company have determined and resolved that the Merger and all of the Contemplated Transactions are in the best interests of the Company and the Shareholders and that the Merger is fair and advisable, and has approved and adopted this Agreement and the principle of the Merger in accordance with the relevant provisions of the French Commercial Code (the “French Commercial Code”);

 

WHEREAS, the board of directors of Parent unanimously has determined and resolved that the Merger and all of the Contemplated Transactions are in the best interests of Parent and has approved and adopted this Agreement and the Merger in accordance with the French Commercial Code, and Parent, as the sole shareholder of Merger Sub, has determined and resolved that the Merger and all of the Contemplated Transactions are in the best interests of Merger Sub and has approved and adopted this Agreement and the Merger in accordance with the French Commercial Code; and

 

WHEREAS, Parent, Merger Sub, the Company and the Shareholders desire to make certain representations, warranties, covenants and agreements in connection with the Merger as set forth in this Agreement.

 

WHEREAS, the Company and the Shareholders have made available the information and documents requested by Parent for considering the opportunity to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

 

 

 

 

ARTICLE I
THE MERGER

 

Section 1.1     The Merger. At the Effective Time and upon the terms and subject to the conditions of this Agreement, and in accordance with the applicable provisions of the French Commercial Code, the Company shall be merged with and into Merger Sub. Following the Merger, Merger Sub shall continue as the surviving entity (the “Surviving Entity”) under the Laws of France and, following the Share Exchange, will continue as a wholly-owned subsidiary of Parent, and the separate existence of the Company shall cease.    

 

Section 1.2     Effective Time. Subject to the provisions of this Agreement, the parties hereto will cause the French Agreement of Merger and other appropriate documents to be delivered and properly filed in such form as required by, and executed in accordance with, the relevant provisions of the French Commercial Code as soon as practicable after the date of this Agreement and for the Merger to be approved by the shareholders’ meetings of the Company and of Merger Sub on the Closing Date. The Merger shall become effective, in accordance with and subject to the relevant provisions of the French Commercial Code, as of the Closing Date (the “Effective Time”).

 

Section 1.3     Closing of the Merger. The closing of the Merger (the “Closing”) will take place at a time and on a date to be specified by the parties (the “Closing Date”), which shall be no later than the second Business Day after satisfaction or waiver (to the extent legally permissible) of the conditions set forth in Article VIII (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions), remotely via the electronic exchange of documents, or at such other time, date or place as agreed to in writing by the parties hereto.

 

Section 1.4     Effects of the Merger. The Merger shall have the effects set forth in this Agreement, the French Agreement of Merger and the applicable provisions of the French Commercial Code. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all of the properties, rights, privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving Entity, and all debts, liabilities, obligations and duties of the Company and Merger Sub shall become the debts, liabilities, obligations and duties of the Surviving Entity.

 

Section 1.5     Directors and Officers. The directors of the Surviving Entity as of the Closing Date shall consist of the individuals specified in Section 1.5 of the Parent Disclosure Schedule and shall hold office in accordance with the certificate of incorporation and bylaws of the Surviving Entity until their successors are duly elected or appointed and qualified or until their earlier death, resignation or removal. The individuals specified in Section 1.5 of the Parent Disclosure Schedule shall be the officers of the Surviving Entity as of the Closing Date and shall hold office in accordance with the certificate of incorporation and bylaws of the Surviving Entity and their respective employment agreements (if any), until their successors are duly elected or appointed and qualified or until their earlier death, resignation, removal or termination of their respective employment (if applicable).

 

 

- 2 -

 

 

Section 1.6     Organizational Documents. The bylaws of Merger Sub, as in effect immediately prior to the Effective Time, will be the bylaws of the Surviving Entity until thereafter amended in accordance with the certificate of incorporation, such bylaws and applicable Law.

 

ARTICLE II
CONVERSION OF SECURITIES

 

Section 2.1     Effect on Capital Stock. 

 

(a)     At the Effective Time, by virtue of the Merger, as set out in the French Agreement of Merger and automatically without any further action on the part of Parent, Merger Sub, the Company or any holder of capital stock of any of them, all of the outstanding Company Common Shares shall be cancelled and automatically be converted into and become the right of the Shareholders to receive, in the aggregate, the equivalent of $12,500,000 in cash and common shares of Merger Sub as follows (and allocated in accordance with Section 2.1(c) of the Company Disclosure Schedule):

 

(i)     a limited cash payment (“soulte”) within the limit authorized by the relevant provisions of the French Commercial Code and the French Tax Code, which shall not exceed the equivalent of $1,250,000 (the “Closing Cash Payment”);

 

(ii)     an aggregate number of common shares (“Merger Sub Common Shares”) of Merger Sub (the “Closing Equity Payment” and, together with the Closing Cash Payment, the “Merger Consideration”) to be determined based on Parent’s enterprise value allocation among the Company, the Subsidiaries and the Nadaud Intellectual Property (as defined below) to be performed prior to the Closing Date.

 

(b)     Immediately following the Effective Time, automatically without any further action on the part of any party, each Shareholder’s Closing Equity Payment will be contributed to Parent in exchange for shares of common stock, par value $0.0001 per share (“Parent Common Stock”), of Parent as set forth in Section 2.1(c) of the Company Disclosure Schedule (the “Share Exchange”); provided, that the aggregate number of shares of Parent Common Stock to be issued in the Share Exchange shall be 1,841,244 shares.

 

(c)     Section 2.1(c) of the Company Disclosure Schedule sets forth the percentage of the Merger Consideration to be received by each Shareholder and shall be updated prior to the Closing to set forth to whom and in what denominations the Merger Consideration is to be allocated amongst the Shareholders and the number of shares of Parent Common Stock to be received by each of the Shareholders pursuant to the Share Exchange.

 

(d)     Notwithstanding the foregoing, no fractional shares shall be issued as part of the Closing Equity Payment or Share Exchange. Fractional shares to be issued hereunder shall be rounded up to the next whole number. 

  

 

- 3 -

 

 

Section 2.2     Working Capital Adjustment.

 

(a)     Within thirty (30) days after the Closing, the Shareholders’ Agent will prepare and deliver, or will cause to be prepared and delivered, to Parent a statement (the “Closing Date Working Capital Statement”) setting forth the actual Working Capital as of the close of business on the last Business Day prior to the Closing Date (the “Closing Date Working Capital”). The Closing Date Working Capital Statement will fairly and accurately present the Closing Date Working Capital, determined in accordance with GAAP.

 

(b)     Parent shall have a period of thirty (30) days after the date on which the Closing Date Working Capital Statement is delivered to it (the “Review Period”) to review the Closing Date Working Capital Statement. If Parent objects to the calculation of the Closing Date Working Capital as set forth on such Closing Date Working Capital Statement, Parent shall so inform the Shareholders’ Agent in writing (the “Objection”) on or before the last day of the Review Period, setting forth in reasonable detail the basis of the Objection and the adjustments to the Closing Date Working Capital Statement that Parent believes should be made. In the event that an Objection is not delivered to the Shareholders’ Agent on or before the last day of the Review Period, Parent shall be deemed to have agreed to the Closing Date Working Capital Statement. In the event that an Objection is delivered to the Shareholders’ Agent on or before the last day of the Review Period, Parent and the Shareholders’ Agent shall attempt in good faith to reach an agreement with respect to any matters in dispute. If Parent and the Shareholders’ Agent are unable to resolve all of their differences within thirty (30) days after delivery of the Objection to the Shareholders’ Agent (or such longer period as they may mutually agree), they will refer their remaining differences to a firm of independent public accountants as to which Parent and the Shareholders’ Agent shall mutually agree (the “WC Arbiter”). The WC Arbiter will, based on those items as to which Parent and the Shareholders’ Agent have agreed and the WC Arbiter’s determination regarding those items in dispute, finally determine the Closing Date Working Capital; provided, however, that the Closing Date Working Capital as finally determined by the WC Arbiter shall not be less than the amount proposed by Parent or greater than the amount proposed by the Shareholders’ Agent. The WC Arbiter’s determination shall be set forth in writing and shall be conclusive and binding upon all parties hereto and may be entered as a final judgment in any court of competent jurisdiction. The fees of the WC Arbiter shall be paid by the party whose determination of the Closing Date Working Capital is the furthest from the WC Arbiter’s Closing Date Working Capital determination. Each of the parties hereto shall make available to the WC Arbiter and each other party hereto all relevant books and records and any work papers (including those, if any, of the Company’s accountants) in its possession or readily obtainable by it relating to the Closing Date Working Capital, and all other items reasonably requested by the WC Arbiter and each other party hereto.

 

(c)     The “Final Working Capital Amount” shall be (i) if no Objection is sent to the Shareholders’ Agent prior to the end of the Review Period, the amount of the Closing Date Working Capital set forth on the Closing Date Working Capital Statement delivered by the Shareholders’ Agent to Parent, (ii) if an Objection is made but finally determined between Parent and the Shareholders’ Agent prior to referring any such dispute to a WC Arbiter, the amount of the Closing Date Working Capital so finally determined between them; and (iii) if an Objection is sent to the WC Arbiter, the amount of the Closing Date Working Capital as finally determined by such WC Arbiter. Any such determination of the Final Working Capital Amount shall be deemed to be a Resolution under Section 7.3(c)(ii).

 

 

- 4 -

 

 

(d)     If the Final Working Capital Amount is less than $600,000, then the amount equal to the difference between the Final Working Capital Amount and $600,000 (the “Working Capital Deficit”) will be deemed to be a Loss that is subject to indemnification by the Shareholders under Section 7.3(a). 

 

(e)     If the Final Working Capital Amount is greater than $1,600,000, then the amount equal to the difference between the Final Working Capital Amount and $1,600,000 (the “Working Capital Surplus”) will be deemed to be a Loss that is subject to indemnification by Parent under Section 7.3(b).

 

(f)     For the avoidance of doubt, if the Final Working Capital Amount is equal to or greater than $600,000 and less than or equal to $1,600,000, no indemnification shall be required under Section 2.2(d) or 2.2(e). 

 

Section 2.3     Merger; Exchange Procedures. 

 

(a)     At the Effective Time, all in accordance with the French Agreement of Merger and by effect of the relevant provisions of the French Commercial Code, each Shareholder will receive in exchange of his Company Common Shares the Merger Consideration as provided in clauses (i) and (ii) of Section 2.1(a), allocated pursuant to Section 2.1(c) of the Company Disclosure Schedule. The Company Common Shares will be cancelled by effect of the Merger, all in accordance with the French Agreement of Merger and by effect of the relevant provisions of the French Commercial Code.

 

(b)     Payment of the Closing Cash Payment will be made by wire transfer of immediately available funds to the accounts designated in writing by the Shareholders at least two Business Days prior to the Closing Date. 

 

(c)     Immediately following the Effective Time, each Shareholder will execute a share transfer form (“ordre de mouvement”) to transfer the shares representing his Closing Equity Payment to Parent and will promptly upon delivery thereof receive in exchange therefor the Parent Common Stock as provided in Section 2.1(b) and in Section 2.1(c) of the Company Disclosure Schedule. 

 

Section 2.4     Withholding Rights. Notwithstanding anything in this Agreement to the contrary, Parent, Merger Sub and the Company will be entitled to withhold and deduct from the cash consideration otherwise payable pursuant to this Agreement such amounts as Parent, Merger Sub or the Company is required to deduct and withhold with respect to the making of such payment under the Code or any provision of state, local or foreign Tax Law. Parent shall take, or cause to be taken, all action that may be necessary to ensure that any such amounts are timely withheld and promptly and properly remitted to the appropriate Governmental Entity. To the extent that amounts are so withheld and paid over to the appropriate Governmental Entity, such amounts shall be treated for all purposes of this Agreement as having been paid to the Shareholder in respect of which such deduction and withholding were made.

 

Section 2.5     Tax Treatment of Merger. The Merger and Share Exchange together are intended to qualify as a reorganization within the meaning of Code Section 368(a). All parties will file all Tax Returns consistent with such treatment, and no party will take any position that is inconsistent with such treatment in any audit or other proceeding unless required to do so by applicable Law or take any action that could jeopardize such treatment unless required to do so by applicable Law. 

 

 

- 5 -

 

 

ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the Company’s disclosure schedule provided herewith (the “Company Disclosure Schedule”), the Company hereby represents and warrants to Parent and Merger Sub, as of the date hereof and as of the Closing Date, except to the extent certain representations and warranties are limited to a certain date set forth in the applicable Section, as follows:

 

Section 3.1     Organization, Etc. Each of the Company and the Subsidiaries is duly organized, validly existing and in good standing (to the extent such concept is recognized) under the Laws of its jurisdiction of organization set forth on Section 3.1 of the Company Disclosure Schedule and has all requisite power and authority to conduct its business as it is now being conducted and to own, lease and operate its properties and assets. Each of the Company and the Subsidiaries is qualified to do business and is in good standing (to the extent such concept is recognized) in each jurisdiction in which the ownership of its properties or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing (if applicable) would not, individually or in the aggregate, have a Company Material Adverse Effect. True and complete copies of the organizational and governing documents of the Company and the Subsidiaries as presently in effect have been heretofore made available to Parent. None of the Company or the Subsidiaries is in violation of any term or provision of its organizational or governing documents.

 

Section 3.2     Capitalization. The authorized shares of capital stock of the Company are as set forth in Section 3.2 of the Company Disclosure Schedule. The outstanding Company Common Shares and the beneficial and record owners thereof are as set forth in Section 3.2 of the Company Disclosure Schedule. No other shares of capital stock of the Company are issued or outstanding. All outstanding Company Common Shares are duly authorized, validly issued, fully paid and non-assessable, and issued free from preemptive rights and in compliance with all applicable securities Laws. Except as set forth in Section 3.2 of the Company Disclosure Schedule, there are no outstanding (a) securities convertible into or exchangeable for capital stock of the Company, (b) options, warrants or other rights to purchase or subscribe for capital stock of the Company, or (c) contracts, commitments, agreements, understandings or arrangements of any kind relating to the issuance of any capital stock of the Company, any such convertible or exchangeable securities or any such options, warrants or rights, pursuant to which, in any of the foregoing cases, the Company is subject or bound. Except as set forth in Section 3.2 of the Company Disclosure Schedule, there are no voting trusts, voting agreements, proxies, shareholders’ agreements or other similar instruments restricting or relating to the rights of any of the holders of Company Common Shares to vote, transfer or receive dividends with respect to any Company Common Shares or with respect to the management or control of the Company. 

 

 

- 6 -

 

 

Section 3.3     Company’s Subsidiaries. Except for the Subsidiaries, the Company does not have any subsidiaries or own any equity interest in any other Person. All outstanding equity interests in each Subsidiary are duly authorized, validly issued, fully paid and non-assessable, and issued free from preemptive rights and in compliance with all applicable securities Laws. Except as set forth in Section 3.3 of the Company Disclosure Schedule, there are no outstanding (a) securities convertible into or exchangeable for equity interests of any Subsidiary, (b) options, warrants or other rights to purchase or subscribe for equity interests of any Subsidiary, or (c) contracts, commitments, agreements, understandings or arrangements of any kind relating to the issuance of any equity interests of any Subsidiary, any such convertible or exchangeable securities or any such options, warrants or rights, pursuant to which, in any of the foregoing cases, the Company or any Subsidiary is subject or bound. Except as set forth in Section 3.3 of the Company Disclosure Schedule, all outstanding equity interests in the Subsidiaries are owned (of record and beneficially) directly by the Company, free and clear of all Encumbrances. Section 3.3 of the Company Disclosure Schedule sets forth the authorized capital stock of each Subsidiary, the outstanding capital stock of each Subsidiary and the beneficial and record owners thereof, who own such shares free and clear of all Encumbrances.

 

Section 3.4     Authority Relative to this Agreement. The Company has all requisite corporate or similar power and authority to execute and deliver the Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate the Contemplated Transactions. The execution and delivery of the Transaction Documents to which it is a party, the performance of its obligations thereunder and the consummation of the Contemplated Transactions have been duly and validly authorized by all required corporate or other action on the part of the Company, and no other corporate or other proceedings on the part of the Company are necessary to authorize the Transaction Documents to which it is a party or to consummate the Contemplated Transactions. This Agreement has been duly and validly executed and delivered by the Company and, assuming this Agreement has been duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against it in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws now or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of statutory and other Laws regarding fraudulent conveyances and preferential transfers and subject to the limitations imposed by general equitable principles (regardless whether such enforceability is considered in a proceeding at law or in equity) (collectively, the “Bankruptcy and Equity Principles”).

 

Section 3.5     Consents and Approvals; No Violations. Except as set forth on Section 3.5 of the Company Disclosure Schedule, none of the execution or delivery of any of the Transaction Documents by the Company, the performance by the Company of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions by the Company will (a) violate any provision of the organizational or governing documents of the Company or any Subsidiary, (b) require it to obtain or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration or filing with or notification to, any U.S. federal, state, local or foreign government, executive official thereof, governmental, administrative or regulatory authority, agency, body or commission, including any court of competent jurisdiction, domestic or foreign (each, a “Governmental Entity”), (c) require a consent under, result in a material violation or material breach of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination, cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties or assets of the Company or any Subsidiary pursuant to, any of the terms, conditions or provisions of any Material Contract, or (d) violate any Law of any Governmental Entity applicable to the Company or any Subsidiary or by which the Company or any Subsidiary or any of their respective properties or assets is bound. 

 

 

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Section 3.6     Financial Statements. The Company has previously delivered or made available to Parent true and complete copies of the financial statements included in Section 3.6 of the Company Disclosure Schedule (collectively, the “Company Financials”). Each of the Company Financials (i) has been prepared from, and is in accordance with, the books and records of the Company and the Subsidiaries, (ii) was prepared in all material respects in accordance with French GAAP, and (iii) fairly presents in all material respects the financial position, results of operations, cash flows and changes in shareholders’ equity of the Company and the Subsidiaries as of the respective dates thereof and for the respective periods indicated therein (except that the unaudited financial statements do not contain footnotes, statements of shareholders’ equity (deficit) and cash flows and are subject to normal and recurring year-end adjustments (the nature or amount of which adjustments would not reasonably be expected, individually or in the aggregate, to be material)). 

 

Section 3.7     No Undisclosed Liabilities. 

 

(a)     None of the Company or the Subsidiaries has any liabilities or obligations of any nature (absolute, accrued, contingent or otherwise), except as and to the extent specifically set forth, disclosed in, provided for, reflected in or otherwise described in the Company Financials or in Section 3.7(a) of the Company Disclosure Schedule, and except for those incurred in the ordinary course of business since December 31, 2014.

 

(b)     Section 3.7(b) of the Company Disclosure Schedule sets forth all indebtedness of any of the Company or the Subsidiaries for borrowed money.

 

Section 3.8     Absence of Certain Changes. Since December 31, 2014, except as set forth on Section 3.8 of the Company Disclosure Schedule, none of the Company or the Subsidiaries has (a) conducted business other than in the ordinary and usual course consistent with past practice, (b) suffered any Company Material Adverse Effect, (c) declared, set aside for payment or paid any dividend or other distribution (whether in cash, stock, property or any combination thereof) in respect of any capital stock, or redeemed or otherwise acquired any shares of capital stock, (d) incurred any indebtedness for borrowed money or issued any debt securities or assumed, guaranteed or endorsed the obligations of any other Person, (e) Transferred or entered into a Contract to Transfer any of its material properties or assets, other than this Agreement, (f) created any Encumbrance on any of its properties or assets, (g) increased in any manner the rate or terms of compensation of any of its directors, officers or employees except for any increases for employees (other than the Shareholders) made in the ordinary course of business, (h) paid or agreed to pay any pension, retirement allowance or other material employee benefit not required by any existing Benefit Plan or Employee Arrangement, (i) entered into or amended any employment, bonus, severance or retirement Contract other than with employees (other than the Shareholders) in the ordinary course of business, (j) made or revoked any election relating to Taxes, (k) changed any methods of reporting income or deductions for U.S. federal or foreign income tax purposes, (l) made any capital expenditures, individually or in the aggregate, in excess of $10,000, (m) suffered any damage, destruction or loss (whether or not covered by insurance) to any of its material assets, (n) had any officer or key employee resign or terminate employment, (o) acquired, sold, leased or disposed of any assets outside the ordinary course of business or (p) settled or compromised any pending or threatened suit, action, proceeding or, other than in the ordinary course of business, claim.

 

 

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Section 3.9     Compliance with Law. Each of the Company and the Subsidiaries is, and has been for the past three (3) years, in compliance in all material respects with all material Laws applicable to it or any of its businesses, properties or assets. None of the Company or the Subsidiaries or, to the Knowledge of the Company, any officer, director or employee of any of the Company or the Subsidiaries, in such capacity, has received notice from any Governmental Entity of, or to the Knowledge of the Company is charged or threatened with or under investigation with respect to, any violation of any provision of any applicable Law. 

 

Section 3.10     Material Contracts.

 

(a)     Section 3.10(a) of the Company Disclosure Schedule sets forth a list of all Contracts that are material to any of the Company or the Subsidiaries to which any of them is a party or by which any of them or any of their respective properties or assets is bound, including (i) any employment Contract or other Contract for services that is not terminable at will without liability for any penalty or severance payment, (ii) any Contract involving annual payments or receipts by any of the Company or the Subsidiaries of $25,000 or more with respect to any such Contract, (iii) any Contract with each of the 25 largest customers and 25 largest suppliers, which largest customers and suppliers shall be determined using revenues/payments by the Company and the Subsidiaries during the year ended December 31, 2014 (respectively, the “Major Customers” and the “Major Suppliers” and, collectively, the “Major Customers and Suppliers”), (iv) any Contract containing an exclusivity provision that restricts any of the Company’s or the Subsidiaries’ businesses or any Contract limiting any of their freedom to compete in any line of business, in any geographic area or with any Person, (v) any Contract providing for the borrowing or lending of money or any guarantee or, other than in the ordinary course of business, any indemnification of any third party, and (vi) any partnership or joint venture agreement (collectively, the “Material Contracts”). The Company has made available to Parent true, correct and complete copies of all Material Contracts. None of the Company, the Subsidiaries or the Surviving Entity will have any responsibilities, obligations or liabilities, contractual or otherwise, arising under any change of control provision of any Contract as a result of any of the Contemplated Transactions. 

 

(b)     Each of the Material Contracts constitutes the valid, legally binding and enforceable obligation of the Company or Subsidiary party thereto and, to the Knowledge of the Company, each of the other parties thereto, except as may be limited by applicable Bankruptcy and Equity Principles. Each Material Contract is in full force and effect. 

 

(c)     Except as set forth in Section 3.10(c) of the Company Disclosure Schedule, none of the Company or the Subsidiaries is in breach or default in any material respect, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default by any of the Company or the Subsidiaries or permit termination, modification or acceleration, of or under any of the Material Contracts and, to the Knowledge of the Company, no other party to any of the Material Contracts is in breach or default in any material respect, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default in any material respect by such party, of or under any of the Material Contracts. None of the Company or the Subsidiaries has received a written notice or claim against any of the Company or the Subsidiaries by any party to a Material Contract in respect of any breach or default thereunder.

 

 

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(d)     Except as set forth in Section 3.10(d) of the Company Disclosure Schedule, none of the Company or the Subsidiaries has received written notice of termination, cancellation, material reduction of services or non-renewal that is currently in effect with respect to any Material Contract.

 

Section 3.11     Permits. Each of the Company and the Subsidiaries has all material permits, licenses, certificates of authority and other authorizations from all Governmental Entities necessary for the conduct of its business as presently conducted (the “Permits”) and is in compliance in all material respects with the terms of its Permits. All such Permits are in full force and effect, and none of the Company or the Subsidiaries has received written notice of any event, inquiry or proceeding that is reasonably likely to lead to the revocation, amendment, failure to renew, limitation, suspension or restriction of any Permit.

 

Section 3.12     Litigation. Except as set forth in Section 3.12 of the Company Disclosure Schedule, there is no material action, suit, proceeding or investigation pending or, to the Knowledge of the Company, threatened against any of the Company or the Subsidiaries or any of their respective properties by or before any Governmental Entity. None of the Company or the Subsidiaries is subject to any outstanding injunction, writ, judgment, order or decree of any Governmental Entity. Except as set forth in Section 3.12 of the Company Disclosure Schedule, there is no action, suit, proceeding or investigation pending or, to Knowledge of the Company, threatened against any current or former officer, director, employee or consultant of any of the Company or the Subsidiaries in his or her capacity as such. There is no action, suit or proceeding pending or, to the Knowledge of the Company, threatened against any of the Company or the Subsidiaries by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay the consummation of any of the Contemplated Transactions.

 

Section 3.13     Taxes. Except as set forth in Section 3.13 of the Company Disclosure Schedule:

 

(a)     Each of the Company and the Subsidiaries has

 

(i)      duly and timely filed, or caused to be filed, in accordance with applicable Law, all material Company Tax Returns, each of which is true, correct and complete in all material respects,

 

 

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(ii)      duly and timely paid in full, or caused to be paid in full, all Company Taxes reflected on such Company Tax Returns, and 

 

(iii)     properly accrued in accordance with French GAAP on its books and records a provision for the payment of all Company Taxes that are due, are claimed to be due, or may or will become due with respect to any Tax period (or portion thereof) ending on or before the Closing Date.

 

(b)     No extension of time to file a Company Tax Return, which Company Tax Return has not since been filed in accordance with applicable Law, has been filed. There is no power of attorney in effect with respect or relating to any Company Tax or Company Tax Return. 

 

(c)     No Company Tax Return has been filed, and no Company Tax has been determined, on a consolidated, combined, unitary or other similar basis (including, but not limited to, a consolidated U.S. federal income tax return). There is no circumstance (including, but not limited to, as a transferee or successor, under Code Section 6901 or Treasury Regulation Section 1.1502-6 (or similar provision of applicable Law), as result of a Tax sharing agreement or other Contract or by operation of Law) under which any of the Company or the Subsidiaries is or may be liable for any Tax determined, in whole or in part, by taking into account any income, sale or asset of, or any activity conducted by, any other Person.

 

(d)     Each of the Company and the Subsidiaries has complied in all material respects with all applicable Laws relating to the deposit, collection, withholding, payment or remittance of any Tax (including, but not limited to, Code Section 3402 or similar provision of applicable Law).

 

(e)     There is no Encumbrance for any Tax upon any asset or property of any of the Company or the Subsidiaries, except for any statutory lien for any Tax not yet due.

 

(f)     No audit, action, assessment, examination, hearing, inquiry or investigation is pending or, to the Knowledge of the Company, threatened with regard to any of the Company or the Subsidiaries, any Company Tax or any Company Tax Return.

 

(g)     The statute of limitations for any audit, action, assessment, examination, hearing, inquiry or investigation relating to any Company Tax or any Company Tax Return has not been modified, extended or waived. 

 

(h)     Any material assessment, deficiency, adjustment or other similar item relating to any Company Tax or Company Tax Return has been reported to all Governmental Entities in accordance with applicable Law.

 

(i)     No jurisdiction where no Company Tax Return has been filed or no Company Tax has been paid has made or threatened in writing to make a claim for the payment of any Company Tax or the filing of any Company Tax Return. 

 

 

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(j)     None of the Company or the Subsidiaries is a party to any agreement with any Governmental Entity (including, but not limited to, any closing agreement within the meaning of Code Section 7121 or any analogous provision of applicable Law). No private letter or other ruling or determination from any Governmental Entity relating to any of the Company or the Subsidiaries, any Company Tax or any Company Tax Return has been requested or received by any of the Company or the Subsidiaries.

 

(k)     None of the Company or the Subsidiaries is a party to any Contract that (i) results or could reasonably be expected to result in any amount that is not deductible under Code Section 280G or Code Section 404, or any similar provision of applicable Law, or (ii) is or could reasonably be expected to become subject to Code Section 409A or any similar provision of applicable Law.

 

(l)     None of the Company or the Subsidiaries has any “tax-exempt bond-financed property” or “tax-exempt use property,” within the meaning of Code Section 168(h) or any similar provision of applicable Law.

 

(m)     No asset of any of the Company or the Subsidiaries is required to be treated as being owned by any other Person pursuant to any provision of applicable Law (including, but not limited to, the “safe harbor” leasing provisions of Code Section 168(f)(8), as in effect prior to the repeal of those “safe harbor” leasing provisions).

 

(n)     None of the Company, the Subsidiaries or the Surviving Entity is or will be required to include any item of income in, or exclude any item of deduction from, U.S. federal or foreign taxable income for any Tax period (or portion thereof) ending after the Closing Date, as a result of a change in method of accounting, any installment sale or open transaction, any prepaid amount, refund or credit. 

 

(o)     None of the Company or the Subsidiaries is or has been a beneficiary or otherwise participated in any reportable transaction within the meaning of Treasury Regulation Section 1.6011-4(b)(1).

 

(p)     None of the Company or the Subsidiaries has distributed stock of another Person nor has its stock been distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Code Section 355 or Code Section 361.

 

(q)     None of the Company or the Subsidiaries is or has been a “United States real property holding corporation” within the meaning of Code Section 897(c)(2) at any time during the applicable period referred to in Code Section 897(c)(l)(A)(ii).

 

(r)     No election under Code Section 338 or any similar provision of applicable Law has been made or required to be made by or with respect to any of the Company or the Subsidiaries.

 

(s)     None of the Company or the Subsidiaries owns or has owned an interest in any entity that is a “passive foreign investment company” within the meaning of Code Section 1297.

 

(t)     None of the Company or the Subsidiaries has had, or will have, any items of income that could constitute subpart F income within the meaning of Code Section 952. No Subsidiary that is a “controlled foreign corporation” as defined in the Code owns (directly or indirectly) an “investment in United States property” for purposes of Code Section 956.

 

 

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Section 3.14     Title to Properties; Sufficiency of Assets. 

 

(a)     Except as set forth on Section 3.14(a) of the Company Disclosure Schedule, each of the Company and the Subsidiaries has good, valid and marketable title to, or a valid leasehold or contractual interest in, all of the assets and properties (real and personal) which it owns or leases, and such assets and properties are owned or leased by it free and clear of all Encumbrances. Section 3.14(a) of the Company Disclosure Schedule contains a complete and correct list of all real property leased by each of the Company and the Subsidiaries. None of the Company or the Subsidiaries owns or has ever owned any real property. True, correct and complete copies of all lease agreements, including all amendments and modifications thereto, for all leased real property (the “Leases”) have been made available to Parent. All rents due under the Leases have been paid. Each of the Company and the Subsidiaries enjoys undisturbed possession of its leased real properties and is in compliance with the terms of the Leases, and all Leases are in full force and effect. Each Lease constitutes the valid, legally binding and enforceable obligation of the Company or Subsidiary party thereto and, to the Knowledge of the Company, each of the other parties thereto, except as may be limited by applicable Bankruptcy and Equity Principles. No party to any Lease has given written notice to any of the Company or the Subsidiaries or made a claim in writing against any of the Company or the Subsidiaries in respect of any breach or default thereunder.

 

(b)     All tangible personal property owned or leased by each of the Company and the Subsidiaries is in good operating condition and repair, ordinary wear and tear excepted and subject to routine maintenance, and is suitable and adequate for the uses for which it is being used. Except as set forth on Section 3.14(b) of the Company Disclosure Schedule, the Company’s and the Subsidiaries’ assets and properties (real, personal and intangible) include all material tangible and intangible assets, properties and rights necessary to conduct their respective businesses following the Closing Date in substantially the same manner as is currently conducted.

 

Section 3.15     Intellectual Property.

 

(a)     Section 3.15(a) of the Company Disclosure Schedule identifies all Intellectual Property (other than (i) widely available, commercial off-the-shelf third-party Software licensed to any of the Company or the Subsidiaries on a non-exclusive basis or (ii) any open source Software) licensed to any of the Company or the Subsidiaries (the “Licensed Intellectual Property”). Each of the licenses related to the Licensed Intellectual Property constitutes the valid, legally binding and enforceable obligation of the Company or Subsidiary party thereto and, to the Knowledge of the Company, each of the other parties thereto, except as may be limited by applicable Bankruptcy and Equity Principles. None of the Company or the Subsidiaries is, and, to the Knowledge of the Company, no other party thereto is, in breach or default in any material respect of any license or sublicense relating to any Licensed Intellectual Property, and each such license and sublicense is in full force and effect. 

 

 

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(b)     All Intellectual Property owned by each of the Company and the Subsidiaries is referred to as the “Owned Intellectual Property” and, together with the Licensed Intellectual Property, the “Company Intellectual Property.” Section 3.15(b) of the Company Disclosure Schedule identifies all of the following Owned Intellectual Property: (i) Patents and applications therefor, the number, issue date, title and priority information for each country in which any such Patent has been issued, or the application number, date of filing, title and priority information for each country in which any such Patent application is pending; (ii) registered and unregistered Trademarks (excluding Internet domain names) and applications for registration of Trademarks, the registration or application number related thereto (and, if applicable, the class of goods or the description of the goods or services covered thereby), the countries of filing and the expiration date of each registration in each country in which a registration was issued; (iii) registered and unregistered Copyrights and applications for registration of Copyrights, the registration number and registration date, or the application number and application date, related thereto, and the countries of filing; and (iv) registered Internet domain names. All of the Owned Intellectual Property, the registrations and applications for registration of which are set forth on Section 3.15(b) of the Company Disclosure Schedule, is valid and in full force and effect. To the Knowledge of the Company, all of the other rights within the Company Intellectual Property are valid and subsisting. All filings for the Owned Intellectual Property are in good standing and all assignments and licenses subject to recordation have been properly recorded. 

 

(c)     Each of the Company and the Subsidiaries owns and has good and valid title (la pleine propriété) to the Owned Intellectual Property owned by it, and possesses legally enforceable rights to use the Licensed Intellectual Property licensed by it, in each case free and clear of all Encumbrances. Except as set forth on Section 3.15(c) of the Company Disclosure Schedule, the Company Intellectual Property constitutes all of the Intellectual Property necessary for the Company and the Subsidiaries to conduct their respective businesses as such businesses are currently being conducted. None of the execution or delivery of any of the Transaction Documents by the Company, the performance by the Company of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions by the Company will result in the release, disclosure or delivery of any Company Intellectual Property, or in the grant, assignment or transfer to any other Person of any license or other right to any Company Intellectual Property (except to the Surviving Entity in connection with the Merger), or in the termination or modification of (or right to terminate or modify) any Company Intellectual Property.

 

(d)     Julien Nadaud (“Nadaud”) owns and has good and valid title (la pleine propriété) to the Intellectual Property set forth on Section 3.15(d) of the Company Disclosure Schedule related to the business of any of the Company or the Subsidiaries (the “Nadaud Intellectual Property”), free and clear of all Encumbrances, and has not granted to any Person other than the Company and the Subsidiaries any right or license to use any of the Nadaud Intellectual Property. For all purposes under this Agreement, the terms Owned Intellectual Property and Company Intellectual Property shall be deemed to include the Nadaud Intellectual Property.

 

(e)     Section 3.15(e) of the Company Disclosure Schedule identifies each Contract pursuant to which any Person has been granted any license by any of the Company or the Subsidiaries to use, or otherwise has received or acquired from any of the Company or the Subsidiaries any right (whether or not currently exercisable) or interest in, including the right to use, any Owned Intellectual Property. 

 

 

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(f)     Except as set forth on Section 3.15(f) of the Company Disclosure Schedule, no current or former shareholder, officer, director, consultant, employee or vendor of any of the Company or the Subsidiaries has any ownership claim, ownership right (whether or not currently exercisable) or ownership interest in or to any Owned Intellectual Property.

 

(g)     Except as set forth on Section 3.15(g) of the Company Disclosure Schedule, to the Knowledge of the Company, there is no unauthorized use, disclosure, infringement or misappropriation of any Company Intellectual Property by any third party, including any current or former employee of any of the Company or the Subsidiaries. 

 

(h)     Except as set forth on Section 3.15(h) of the Company Disclosure Schedule, none of the Company or the Subsidiaries has received any notice or other communication (in writing or otherwise) of any actual, alleged, possible or potential infringement, misappropriation or unlawful use of, and, to the Knowledge of the Company, none of the Company or the Subsidiaries is infringing, misappropriating or making unlawful use of, any Intellectual Property owned by any third party. There are no actions, suits or proceedings that are pending or, to the Knowledge of the Company, threatened against any of the Company or the Subsidiaries with respect to any infringement, misappropriation or unlawful use of any Intellectual Property owned or used by any third party.

 

(i)     A list of the key proprietary software of each of the Company and the Subsidiaries is set forth in Section 3.15(i) of the Company Disclosure Schedule. 

 

Section 3.16     Insurance. Each of the Company and the Subsidiaries maintains policies of fire and casualty, liability and other forms of insurance, in such amounts, with such deductibles, covering against such risks and losses and with such reputable insurers, as are customary for businesses of a type and size, and with assets and properties, comparable to those of the businesses of the Company and the Subsidiaries as currently conducted. Set forth on Section 3.16 of the Company Disclosure Schedule is a listing of each insurance policy maintained by any of the Company or the Subsidiaries, setting forth the issuers, amounts, deductibles and coverages for each, and a description of all material claims under any insurance policy maintained by any of the Company or the Subsidiaries at any time during the past three years. All such policies are in full force and effect and all premiums due and payable thereon have been paid in full, and no notice of cancellation or termination has been received with respect to any such policy which has not been replaced on substantially similar terms prior to the date of such cancellation. There are no pending claims under any of such policies.

 

 

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Section 3.17     Environmental Matters. Notwithstanding anything to the contrary in this Section 3.17, all representations and warranties in this Section 3.17 relating to any activities, business or operations of any Person other than the Company and the Subsidiaries at any real property currently or formerly leased by any of the Company or the Subsidiaries (including the lessor of any such property) are made to the Knowledge of the Company:

 

(a)     Each of the Company and the Subsidiaries has all material licenses, permits, authorizations, approvals and consents from all Governmental Entities that are required under any applicable Environmental Law and necessary for it to carry on its business or operations as now conducted (“Environmental Permits”). Each of such Environmental Permits is in full force and effect. The operations of each of the Company and the Subsidiaries are in compliance with, in all material respects, and have complied with, in all material respects, all applicable Environmental Laws and all Environmental Permits. 

 

(b)     There are no environmental conditions, including the presence or release of any Hazardous Materials, on any property currently or formerly owned, operated or leased by any of the Company or the Subsidiaries or any of their respective predecessors (i) relating to, arising out of, or resulting from any failure to comply with any applicable Environmental Law or Environmental Permit or from a release or threatened release of any Hazardous Materials or (ii) which require cleanup or remediation pursuant to any Environmental Law. 

 

(c)     None of the Company or the Subsidiaries has any material liability under any Environmental Law or is responsible for any material liability of any other Person under any Environmental Law, whether by Contract, by operation of Law or otherwise

 

(d)     None of the Company or the Subsidiaries has received any written information request, notice or other communication from a Governmental Entity, and there are no actions, suits, proceedings or investigations pending or, to the Knowledge of the Company, threatened against any of the Company or the Subsidiaries, relating to any violation, or alleged violation of, or liability under, any Environmental Law or relating to any Hazardous Materials or Environmental Permit, including (i) any claim by a Governmental Entity for enforcement, investigation, cleanup, removal, response, corrective, remedial, monitoring, or other action, damages, fines or penalties pursuant to any Environmental Law, and (ii) any claim by any one or more Persons seeking damages, contribution, indemnification, cost recovery, compensation, injunctive or other relief resulting from or relating to a release of any Hazardous Materials or alleged injury or threat of injury to health, safety, property, natural resources or the environment.

 

(e)     There is not located at any property currently or formerly owned, operated or leased by any of the Company or the Subsidiaries or any of their respective predecessors any (i) underground storage tanks, (ii) asbestos-containing material, (iii) equipment containing polychlorinated biphenyls or (iv) mold, in each case except in compliance in all material respects with applicable Environmental Laws.

 

(f)     The Company has made available to Parent true, complete and correct copies of all material records and files, environmental audits, reports, and other material environmental documents, studies, analysis, tests and monitoring in its possession or control concerning the existence of any Hazardous Materials or any other environmental concern at any property currently or formerly owned, operated or leased by any of the Company or the Subsidiaries or concerning compliance by any of the Company or the Subsidiaries with, or liability under, any Environmental Law.

 

 

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(g)           For purposes of this Section 3.17, the following terms shall have the following meanings:

 

(i)       “Environmental Laws” means all foreign, U.S. federal, state and local Laws of any Governmental Entity relating to (A) the generation, treatment, storage, disposal, use, handling, manufacturing, transportation or shipment of Hazardous Materials, or (B) the environment or to emissions, discharges, releases or threatened releases of Hazardous Materials into the environment.

 

(ii)     “Hazardous Materials” means (A) petroleum and petroleum products, radioactive materials and friable asbestos; and (B) chemicals and other materials and substances which are now defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” or “toxic pollutants” under any Environmental Law.

 

Section 3.18     Employee and Labor Matters. Except as set forth in Section 3.18 of the Company Disclosure Schedule, none of the Company or the Subsidiaries is a party to any collective bargaining or other labor union Contract applicable to Persons employed by it, no collective bargaining agreement is being negotiated by any of the Company or the Subsidiaries, and, to the Knowledge of the Company, there are no activities or proceedings of any labor union to organize any of the employees of any of the Company or the Subsidiaries. Except as set forth in Section 3.18 of the Company Disclosure Schedule, (a) each of the Company and the Subsidiaries is in compliance in all material respects with all applicable Laws relating to employment and employment practices, wages, hours, occupational safety, health standards, severance payments, equal opportunity, payment of social security, national insurance and other Taxes, and terms and conditions of employment, (b) there are no charges with respect to or relating to any of the Company or the Subsidiaries pending, or to the Knowledge of the Company, threatened by or before any Governmental Entity responsible for the prevention of unlawful or discriminatory employment practices or unfair labor practices, and (c) there is no strike, work stoppage, work slowdown, lockout, picketing, concerted refusal to work overtime, or other similar labor activity pending or, to the Knowledge of the Company, threatened against or involving any of the Company or the Subsidiaries currently or within the last three years. All sums due for employee, consultant and independent contractor compensation and benefits, including pension and severance benefits, and all vacation time owing to any employees of any of the Company or the Subsidiaries have been duly and adequately accrued on the accounting records of the Company and the Subsidiaries. All individuals characterized and treated by any of the Company or the Subsidiaries as consultants or independent contractors are properly treated as independent contractors under all applicable Laws. All employees of any of the Company or the Subsidiaries classified as exempt under the Fair Labor Standards Act or applicable foreign, state and local wage and hour Laws are properly classified.

 

 

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Section 3.19     Employee Plans.

 

(a)     Section 3.19 of the Company Disclosure Schedule sets forth a true, correct and complete list of:

 

(i)       all “employee benefit plans,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or any similar provision of applicable foreign Law, with respect to which any of the Company or the Subsidiaries has any obligation or liability, contingent or otherwise (the “Benefit Plans”);

 

(ii)      all current directors, officers and employees of each of the Company and the Subsidiaries; and

 

(iii)     all employment, consulting, termination, profit sharing, severance, change of control, individual compensation and indemnification agreements, and all bonus and other incentive compensation, deferred compensation, salary continuation, invention, patent, copyright, disability, severance, stock award, stock option, stock purchase, educational assistance, legal assistance, club membership, employee discount, employee loan, credit union and vacation agreements, policies and arrangements under which any of the Company or the Subsidiaries has any obligation or liability (contingent or otherwise) in respect of any current or former officer, director, employee, consultant or contractor of any of the Company or the Subsidiaries (the “Employee Arrangements”).

 

(b)     In respect of each Benefit Plan and Employee Arrangement, a complete and correct copy of each of the following documents (if applicable) has been made available to Parent: (i) the most recent plan and related trust documents, and all amendments thereto; (ii) the most recent summary plan description, and all related summaries of modifications thereto; (iii) the most recent Form 5500 (including schedules and attachments); (iv) the most recent Internal Revenue Service (“IRS”) determination, opinion or notification letter; and (v) each written Employee Arrangement, and all amendments thereto.

 

(c)     None of the Benefit Plans or Employee Arrangements is subject to Title IV of ERISA, constitutes a defined benefit retirement plan or is a multiemployer plan described in Section 3(37) of ERISA, and none of the Company or the Subsidiaries has any obligation or liability (contingent or otherwise) in respect of any such plans. 

 

(d)     The Benefit Plans and their related trusts intended to qualify under Sections 401 and 501(a) of the Code, respectively, have either received a favorable determination, opinion or notification letter from the IRS with respect to each such Benefit Plan as to its qualified status under the Code, or has remaining a period of time under applicable U.S. Treasury Regulations or IRS pronouncements in which to apply for such a letter and make any amendments necessary to obtain a favorable determination as to the qualified status of each such Benefit Plan. 

 

(e)     All contributions and other payments required to have been made by any of the Company or the Subsidiaries to or under any Benefit Plan or Employee Arrangement by applicable Law or the terms of such Benefit Plan or Employee Arrangement (or any agreement relating thereto) have been timely and properly made.

 

 

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(f)     The Benefit Plans and Employee Arrangements have been maintained and administered in accordance with their terms and applicable Laws. 

 

(g)     Except as set forth in Section 3.19(g) of the Company Disclosure Schedule, there are no pending or, to the Knowledge of the Company, threatened actions, claims, suits or proceedings against or relating to any Benefit Plan or Employee Arrangement (other than routine benefit claims by persons entitled to benefits thereunder) and, to the Knowledge of the Company, there are no facts or circumstances which could reasonably be expected to form the basis for any of the foregoing.

 

(h)     None of the Company or the Subsidiaries has any obligation or liability (contingent or otherwise) to provide post-retirement life insurance or health benefits coverage for current or former officers, directors, employees, consultants or contractors except (i) as may be required under Part 6 of Title I of ERISA, (ii) a medical expense reimbursement account plan pursuant to Section 125 of the Code, or (iii) through the last day of the calendar month in which the participant terminates employment.

 

(i)      None of the assets of any Benefit Plan is stock of any of the Company or the Subsidiaries.

 

(j)      Neither the execution and delivery of any of the Transaction Documents nor the consummation of any of the Contemplated Transactions will (i) result in any payment becoming due to any director, officer, employee, consultant or contractor (current, former or retired) of any of the Company or the Subsidiaries, (ii) increase any benefits under any Benefit Plan or Employee Arrangement or (iii) result in the acceleration of the time of payment of, vesting of, or other rights in respect of any such benefits (except as which may be required by the partial or full termination of any Benefit Plan intended to be qualified under Section 401 of the Code). No Benefit Plan or Employee Arrangement in effect immediately prior to the Closing Date would result, individually or in the aggregate (including as a result of this Agreement, any of the Transaction Documents or any of the Contemplated Transactions), in the payment of any “excess parachute payment” within the meaning of Section 280G of the Code.

 

(k)     Each Benefit Plan or Employee Arrangement that is a non-qualified deferred compensation plan or arrangement subject to Section 409A of the Code has been operated and administered in good faith compliance with Section 409A of the Code from the period beginning January 1, 2005, or the date such Benefit Plan or Employee Arrangement was established, whichever date is later, through the date hereof.

 

(l)     The Company has made available to Parent a true, complete and correct list of the following (if applicable) for each current employee, consultant and contractor of any of the Company or the Subsidiaries: base salary; any bonus obligations; immigration status; hire date; time-off balance; and pay rate.

 

Section 3.20     Brokers and Finders. None of the Company, the Subsidiaries or any of their respective Representatives has employed any investment banker, broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated Transactions for which Parent or Merger Sub would be liable. 

 

 

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Section 3.21     Shareholder Vote Required. The affirmative votes of the holders of a qualified majority of the outstanding Company Common Shares, in accordance with the relevant provisions of the French Commercial Code, are the only votes of the holders of capital stock of any of the Company or the Subsidiaries necessary to approve and adopt this Agreement. 

 

Section 3.22     Absence of Questionable Payments. None of the Company or the Subsidiaries or, to the Knowledge of the Company, any director, officer, employee, consultant or other Person acting on behalf of any of the Company or the Subsidiaries has (a) used any corporate funds for unlawful contributions, payments, gifts or expenditures, (b) made any unlawful expenditures of corporate funds relating to political activity to government officials or others or (c) established or maintained any unlawful or unrecorded corporate funds in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any other applicable domestic or foreign Law. None of the Company or the Subsidiaries or, to the Knowledge of the Company, any director, officer, employee, consultant or other Person acting on behalf of any of the Company or the Subsidiaries has offered, paid or agreed to pay to any Person (including any governmental official), or solicited, received or agreed to receive from any such Person, directly or indirectly, any unlawful contributions, payments, gifts, expenditures, money or anything of value for the purpose or with the intent of (a) obtaining or maintaining business for any of the Company or the Subsidiaries, (b) facilitating the purchase or sale of any product or service, or (c) avoiding the imposition of any fine or penalty.

 

Section 3.23     Bank Accounts; Powers of Attorney. Section 3.23 of the Company Disclosure Schedule sets forth a true, complete and correct list showing: (a) all banks in which any of the Company or the Subsidiaries maintains a bank account or safe deposit box (collectively, “Bank Accounts”), together with, as to each such Bank Account, the type of account, account number and the names of all signatories thereof and, with respect to each such safe deposit box, if any, the number thereof and the names of all Persons having access thereto; and (b) the names of all Persons holding powers of attorney from any of the Company or the Subsidiaries, true, complete and correct copies of which have been made available to Parent.

 

Section 3.24     Customers and Suppliers. Except as set forth in Section 3.24 of the Company Disclosure Schedule, there are no disputes between any of the Company or the Subsidiaries, on the one hand, and any of the Major Customers and Suppliers, on the other hand, that relate to the operation of the business of any of the Company or the Subsidiaries. Except as set forth in Section 3.24 of the Company Disclosure Schedule, since January 1, 2013, none of the Major Customers and Suppliers has terminated, cancelled, not renewed or materially reduced, or notified any of the Company or the Subsidiaries in writing of its intention to terminate, cancel, not renew or materially reduce, its relationship with any of the Company or the Subsidiaries.

 

Section 3.25     Accounts Receivable. Except as set forth in Section 3.25 of the Company Disclosure Schedule, all accounts receivable of each of the Company and the Subsidiaries have arisen from bona fide transactions in the ordinary course of business, are valid and enforceable, are collectible in the ordinary course of business in amounts not less than the amounts thereof carried on the books of the Company and the Subsidiaries (except to the extent of the allowance for doubtful accounts shown on the Company Financials), and are not subject to set-off or counterclaim. Any allowances that any of the Company or the Subsidiaries have established for doubtful accounts have been established on a basis consistent with past practice and in accordance with French GAAP. 

 

 

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Section 3.26     Certain Transactions. Except as set forth on Section 3.26 of the Company Disclosure Schedule, none of the Shareholders, officers, directors or employees of any of the Company or the Subsidiaries, or any of their respective Affiliates or any member of any such Person’s immediate family (for this purpose, “immediate family” means such Person’s spouse, parents, children and siblings), is presently a party to any Contract or transaction with, or has any indebtedness to, any of the Company or the Subsidiaries, including any Contract (i) providing for the furnishing of services by, (ii) providing for the rental of real or personal property from, or (iii) otherwise requiring payments to (other than for services in the foregoing capacities) any such Person or any corporation, partnership, trust or other entity in which any such Person has a substantial interest as a shareholder, officer, director, trustee or partner, and no such Person owns directly or indirectly any interest in (excluding passive investments in less than 1% of the shares of any company that lists its shares on a national securities exchange), or serves as an officer or director or in another similar capacity of, any competitor or customer of any of the Company or the Subsidiaries or any organization that has a Material Contract with any of the Company or the Subsidiaries.

 

Section 3.27     Proxy Statement. None of the information supplied in writing (including electronically) by the Company, any Shareholder or any of their respective Representatives or Affiliates for inclusion in the Proxy Statement (as hereinafter defined) will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, either at the date the Proxy Statement is first mailed to Parent’s stockholders, at the time of the Stockholders Meeting (as hereinafter defined), or at the time of any amendment or supplement thereof; provided, however, that no representation or warranty is made by the Company with respect to statements made or incorporated by reference therein based on information supplied in writing (including electronically) by Parent or any of its Representatives or Affiliates in connection with the preparation of the Proxy Statement for inclusion or incorporation by reference therein

 

Section 3.28     No Other Representations or Warranties. Except for the representations and warranties contained in this Article III and in the following Article IV, none of the Company, the Subsidiaries, the Shareholders or any other Person makes any representations or warranties, and the Company, the Subsidiaries and the Shareholders hereby disclaim any other representations or warranties, whether made by any of them or any officer, director, employee, agent or representative of the Company, the Subsidiaries, the Shareholders or any other Person, with respect to this Agreement or the Contemplated Transactions. For the avoidance of doubt, the foregoing is not intended to limit the ability of a Parent Indemnified Party to make a claim arising out, based upon or related to fraud and shall not be given any effect in the case of fraud.

 

Section 3.29     Disclosure. All factual information (taken as a whole) heretofore or contemporaneously furnished by or on behalf of any of the Company, the Subsidiaries or the Shareholders in writing (including electronically) to Parent, Merger Sub or any of their Representatives for purposes of or in connection with any of the Transactions Documents or any of the Contemplated Transactions is true and accurate in all material respects and not incomplete by omitting to state any material fact necessary to make such information not misleading in light of the circumstances under which such information was provided. 

 

 

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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

 

Except as set forth in the Company Disclosure Schedule, each Shareholder hereby represents and warrants to Parent and Merger Sub, as of the date hereof and the Closing Date, except to the extent certain representations and warranties are limited to a certain date set forth in the applicable Section, as follows:

 

Section 4.1     Ownership of Shares. Such Shareholder owns the number of Company Common Shares set forth next to his name on Section 3.2 of the Company Disclosure Schedule free and clear of all Encumbrances and, as a result of the Contemplated Transactions, Parent will acquire good, valid and marketable title to the Company Common Shares free and clear of all Encumbrances, other than those that may be created or incurred by Parent. Such Shareholder has not granted any power of attorney with respect to any Company Common Shares owned by him. 

 

Section 4.2     Authority Relative to this Agreement. Such Shareholder has all requisite right, power and authority to execute and deliver the Transaction Documents to which he is a party, to perform his obligations thereunder and to consummate the Contemplated Transactions. This Agreement has been, and each of the other Transaction Documents to which he is a party will be, duly and validly executed and delivered by such Shareholder and, assuming this Agreement has been duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes a legal, valid and binding obligation of such Shareholder, enforceable against him in accordance with its terms, except as limited by applicable Bankruptcy and Equity Principles.

 

Section 4.3     Consents and Approvals; No Violations. None of the execution or delivery of any of the Transaction Documents by such Shareholder, the performance by such Shareholder of any of his obligations thereunder, or the consummation of any of the Contemplated Transactions by such Shareholder will (a) require him to obtain or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration or filing with or notification to, any Governmental Entity, (b) require a consent under, result in a material violation or material breach of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination, cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties or assets of such Shareholder pursuant to, any of the terms, conditions or provisions of any Contract to which such Shareholder is a party or by which such Shareholder or any of his properties or assets is bound, or (c) violate any Law of any Governmental Entity applicable to such Shareholder or by which such Shareholder or any of his properties or assets is bound.

 

 

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Section 4.4     Litigation. There is no action, suit or proceeding pending or, to the Knowledge of such Shareholder, threatened against such Shareholder by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay the consummation of any of the Contemplated Transactions.

 

Section 4.5     Brokers and Finders. Such Shareholder has not employed any investment banker, broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated Transactions for which Parent, Merger Sub or any of the Company or the Subsidiaries would be liable.

 

Section 4.6     Investment Representations. 

 

(a)     Offering Exemption. Such Shareholder understands that the shares of Parent Common Stock to be acquired by him pursuant to the Share Exchange (such shares of Parent Common Stock, the “Exchange Shares”) have not been registered under the Securities Act, nor qualified under any state securities Laws, and that such Exchange Shares are being offered and sold pursuant to an exemption from such registration and qualification based in part upon the representations contained herein. Such Shareholder is an “accredited investor” as defined under Rule 501 promulgated under the Securities Act.

 

(b)     Knowledge and Experience; Ability to Bear Economic Risks. Such Shareholder has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment contemplated by this Agreement; and he is able to bear the economic risk of this investment in the Exchange Shares (including a complete loss of his investment).

 

(c)     Limitations on Disposition. Such Shareholder understands that he must bear the economic risk of his investment in the Exchange Shares indefinitely unless the Exchange Shares are registered pursuant to the Securities Act or an exemption from such registration is available, and unless the disposition of such Exchange Shares is qualified under applicable state and foreign securities Laws or an exemption from such qualification is available. Such Shareholder further understands that there is no assurance that any exemption from the Securities Act will be available or, if available, that such exemption will allow such Shareholder to Transfer any or all of his interest in the Exchange Shares in the amounts or at the times such Shareholder might propose.

 

(d)     Investment Purpose. Such Shareholder is acquiring his interest in the Exchange Shares solely for such Shareholder’s own account for investment and not with a view toward the resale, Transfer or distribution thereof, nor with any present intention of Transferring or distributing his interest in the Exchange Shares.

 

(e)     Restrictive Legend. Such Shareholder understands and acknowledges that the Exchange Shares are characterized as “restricted securities” under U.S. securities Laws and agrees to the imprinting, so long as required by Law, of the following legend on certificates representing his Exchange Shares:

 

 

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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OF AMERICA. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB

 

Except as set forth in Parent’s disclosure schedule provided herewith (the “Parent Disclosure Schedule”), Parent and Merger Sub hereby represent and warrant to the Company and the Shareholders, as of the date hereof and as of the Closing Date, except to the extent certain representations and warranties are limited to a certain date set forth in the applicable Section, as follows:

 

Section 5.1     Corporate Organization, Etc. Each of Parent and Merger Sub is duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and has all requisite power and authority to conduct its business as it is now being conducted and to own, lease and operate its properties and assets, except that Merger Sub is pending incorporation. Each of Parent and Merger Sub is qualified to do business and is in good standing (to the extent such concept is recognized) in each jurisdiction in which the ownership of its properties or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing (if applicable) would not, individually or in the aggregate, have a Parent Material Adverse Effect. True and complete copies of the organizational and governing documents of Parent and Merger Sub as presently in effect have been heretofore made available to the Company. Neither Parent nor Merger Sub is in violation of any term or provision of its organizational or governing documents. Merger Sub is a direct wholly owned subsidiary of Parent.

 

Section 5.2     Capitalization. The authorized shares of capital stock of Parent consists of (a) 15,000,000 shares of Parent Common Stock, of which 7,959,837 shares were outstanding as of March 23, 2015 and (b) 1,000,000 shares of preferred stock, of which (i) 135,000 shares are designated Series F Convertible Preferred Stock (“Series F Preferred Stock”), 118,829.1 shares of which were outstanding as of the date hereof, (ii) 100,000 shares of which are designated Series A Junior Participating Preferred, none of which were outstanding as of the date hereof and (iii) 100,000 shares of which are designated Series B Junior Participating Preferred, none of which were outstanding as of the date hereof.  All outstanding shares of Parent Common Stock and Series F Preferred Stock are duly authorized, validly issued, fully paid and non-assessable, and issued free from preemptive rights and in compliance with all applicable U.S. state and federal securities Laws. As of the date hereof, except for (w) 1,188, 291 shares of Parent Common Stock reserved for issuance upon the conversion of the Series F Preferred Stock, (x) 65,955 shares of Common Stock reserved for issuance to certain investors upon the completion of a private placement financing, (y) warrants to purchase an aggregate of 2,200,496 shares of Parent Common Stock and (z) 3,045,578 shares of Parent Common Stock reserved for issuance upon the exercise of stock options or the settlement of restricted stock units that have been granted or may be granted in the future (including in connection with the Contemplated Transactions), there are no outstanding (i) securities convertible into or exchangeable for capital stock of Parent, (ii) options, warrants or other rights to purchase or subscribe for capital stock of Parent, or (iii) contracts, commitments, agreements, understandings or arrangements of any kind relating to the issuance of any capital stock of Parent, any such convertible or exchangeable securities or any such options, warrants or rights, pursuant to which, in any of the foregoing cases, Parent is subject or bound.    

 

 

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Section 5.3     Authority Relative to this Agreement. Each of Parent and Merger Sub has all requisite power and authority to execute and deliver the Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate the Contemplated Transactions. The execution and delivery of the Transaction Documents to which it is a party, the performance of its obligations thereunder and the consummation of the Contemplated Transactions have been duly and validly authorized by all required corporate or other action on the part of each of Parent and Merger Sub, and no other corporate or other proceedings on the part of Parent or Merger Sub are necessary to authorize the Transaction Documents to which it is a party or to consummate the Contemplated Transactions. This Agreement has been, and each of the other Transaction Documents to which it is a party will be, duly and validly executed and delivered by each of Parent and Merger Sub and, assuming this Agreement has been, and each of the other Transaction Documents to which it is a party will be, duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes, and each of the other Transaction Documents to which it is a party will constitute, a legal, valid and binding obligation of each of Parent and Merger Sub, enforceable against it in accordance with their respective terms, except as limited by applicable Bankruptcy and Equity Principles. The Exchange Shares have been duly authorized and, upon issuance in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable, issued free from preemptive rights, free and clear of all Encumbrances (other than those created or incurred by any Shareholder) and in compliance with applicable U.S. state and federal securities Laws.

 

Section 5.4     Consents and Approvals; No Violations. None of the execution or delivery of any of the Transaction Documents by Parent or Merger Sub, the performance by Parent or Merger Sub of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions by Parent or Merger Sub will (a) violate any provision of the organizational or governing documents of Parent or Merger Sub, (b) require it to obtain or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration or filing with or notification to, any Governmental Entity, except for such consents, waivers, approvals, exemptions, declarations, licenses, authorizations, permits, registrations, filings and notifications which are listed in Section 5.4 of the Parent Disclosure Schedule (the “Parent Consents”), (c) require a consent under, result in a material violation or material breach of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination, cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties or assets of Parent or Merger Sub pursuant to, any of the terms, conditions or provisions of any material Contract to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties or assets is bound, (d) violate any Law of any Governmental Entity applicable to Parent or Merger Sub or by which Parent or Merger Sub or any of their respective properties or assets is bound or (e) require Parent to obtain the approval of any holders of any of its capital stock by Law, Parent’s certificate of incorporation or bylaws or otherwise in order for Parent and Merger Sub to consummate the Merger, the Share Exchange and the Contemplated Transactions, except for the approval by the stockholders of Parent of an amendment to Parent’s certificate of incorporation to increase the number of authorized shares of Parent Common Stock (the “Parent Stockholder Approval Matter”). 

 

 

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Section 5.5     Litigation. There is no material action, suit, proceeding or investigation pending or, to the Knowledge of Parent, threatened against Parent or Merger Sub or any of their respective properties by or before any Governmental Entity. Neither Parent nor Merger Sub is subject to any outstanding injunction, writ, judgment, order or decree of any Governmental Entity. There is no action, suit or proceeding pending or, to the Knowledge of Parent, threatened against Parent or Merger Sub by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay the consummation of any of the Contemplated Transactions.

 

Section 5.6     Brokers and Finders. Neither Parent nor Merger Sub has employed any investment banker, broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated Transactions for which the Company or any of the Shareholders would be liable.

 

Section 5.7     Sufficient Funds. Parent will have sufficient cash on hand to fund the Closing Cash Payment and consummate the Contemplated Transactions at the Closing.   

 

Section 5.8     Solvency. Assuming (a) that the Company and the Subsidiaries are Solvent immediately prior to the Effective Time, (b) the accuracy and completeness of the representations and warranties of the Company set forth in Article III and the Shareholders in Article IV, and (c) that the Company Financials fairly present in all material respects the financial condition of the Company and the Subsidiaries as of the end of the periods covered thereby and the results of operations of the Company and the Subsidiaries for the periods covered thereby, and after giving effect to the Contemplated Transactions, including the payment of the Merger Consideration and the Share Exchange, each of Parent and Merger Sub will be Solvent as of the Effective Time and immediately after the consummation of the Contemplated Transactions. For the purposes of this Agreement, the term “Solvent” when used with respect to any Person means that, as of the applicable date of determination, (i) the amount of the “fair saleable value” of the assets of such Person will, as of such date, exceed (A) the value of all “liabilities of such Person, including contingent and other liabilities,” as of such date, as such quoted terms are generally determined in accordance with applicable Laws governing determinations of the insolvency of debtors, and (B) the amount that will be required to pay the probable liabilities of such Person on its existing debts (including contingent and other liabilities) as such debts become absolute and mature, (ii) such Person will not have, as of such date, an unreasonably small amount of capital for the operation of the businesses in which it is engaged or proposed to be engaged following such date, and (iii) such Person will be able to pay its liabilities, including contingent and other liabilities, as they mature. For purposes of this definition, “not have an unreasonably small amount of capital for the operation of the businesses in which it is engaged or proposed to be engaged” and “able to pay its liabilities, including contingent and other liabilities, as they mature” means that such Person will be able to generate enough cash from operations, asset dispositions or refinancings, or a combination thereof, to meet its obligations as they become due.

 

 

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Section 5.9     Investigation. Each of Parent and Merger Sub acknowledges that, except for the representations and warranties of the Company and each of the Shareholders in this Agreement, it is not relying on any representation or warranty by the Company or any other Person in entering into this Agreement (and will not rely on any other representation or warranty in effecting the Closing). Each of Parent and Merger Sub acknowledges that neither the Company nor any other Person has made any representation or warranty as to the future prospects (financial or otherwise) of the Company or the Subsidiaries in this Agreement, except as otherwise expressly set forth herein. For the avoidance of doubt, the foregoing is not intended to limit the ability of a Parent Indemnified Party to make a claim arising out, based upon or related to fraud and shall not be given any effect in the case of fraud.

 

Section 5.10     SEC Filings; Financial Statements.

 

(a)     Parent has filed or furnished all forms, reports, statements and other documents (including all exhibits, supplements and amendments thereto) required to be filed or furnished by it with the Securities and Exchange Commission (the “SEC”) since January 1, 2013 (such documents, together with all exhibits and schedules thereto and all information incorporated therein by reference, the “SEC Reports”). Each SEC Report (including any financial statements or schedules included therein) (i) as of its date of filing or, if applicable, as of the time of its most recent amendment, complied in all material respects with, to the extent in effect at such time, the requirements of the Securities Act or the Exchange Act, as the case may be, including, in each case, the rules and regulations promulgated thereunder, and (ii) as of its date of filing (and, if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were or are made, not misleading. To the extent required by the Securities Act or the Exchange Act, Parent has amended or updated each SEC Report to correct any untrue statements of material fact or omissions of statements of material facts.

 

(b)     Each of the financial statements (including, in each case, any notes and schedules thereto) included or incorporated by reference in the SEC Reports (collectively, the “Parent Financials”) fairly presents in all material respects the consolidated financial position, results of operations, cash flows and changes in stockholders’ equity of Parent and its subsidiaries as at the respective dates thereof and for the respective periods indicated therein except as otherwise noted therein (except that the unaudited interim statements may not contain footnotes and are subject to normal and recurring year-end adjustments) and have been prepared in all material respects in accordance with the applicable rules and regulations promulgated by the SEC and GAAP, except, in each case, as indicated in such statements or in the notes thereto.

 

 

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(c)     Except (i) to the extent set forth, disclosed in, provided for, reflected in or otherwise described in the balance sheet of Parent included in the SEC Report last filed prior to the date hereof, (ii) for liabilities and obligations incurred in the ordinary course of business since the date of the last balance sheet referred to in the preceding clause (i), or (iii) for liabilities and obligations incurred in connection with this Agreement, any of the Contemplated Transactions or any financing to be obtained by Parent in connection therewith, Parent does not have any liabilities or obligations that have or would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

 

Section 5.11     Absence of Certain Changes or Events. Except for liabilities incurred in connection with this Agreement or any of the Contemplated Transactions, since March 31, 2014, there has not been any change, circumstance or event which has had, or would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

 

Section 5.12     No Merger Sub Business Activities. Merger Sub has not conducted any activities other than in connection with the organization of Merger Sub, the negotiation and execution of this Agreement and the consummation of the Contemplated Transactions. Merger Sub has no subsidiaries. All shares of Merger Sub are owned by Parent.

 

Section 5.13     Proxy Statement. None of the information included or incorporated by reference in the Proxy Statement will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, either at the date the Proxy Statement is first mailed to Parent’s stockholders, at the time of the Stockholders Meeting, or at the time of any amendment or supplement thereof; provided, however, that no representation or warranty is made by Parent with respect to statements made or incorporated by reference therein based on information supplied in writing (including electronically) by the Company, any Shareholder or any of their Representatives or Affiliates in connection with the preparation of the Proxy Statement for inclusion or incorporation by reference therein. 

 

Section 5.14     No Other Representations or Warranties. Except for the representations and warranties contained in this Article V, neither Parent, Merger Sub nor any other Person makes any representations or warranties, and Parent and Merger Sub hereby disclaim any other representations or warranties, whether made by any of them or any officer, director, employee, agent or representative of Parent, Merger Sub or any other Person, with respect to this Agreement or any of the Contemplated Transactions. For the avoidance of doubt, the foregoing is not intended to limit the ability of a Shareholder Indemnified Party to make a claim arising out, based upon or related to fraud and shall not be given any effect in the case of fraud.

 

ARTICLE VI
COVENANTS

 

Section 6.1     Conduct of the Business of the Company Pending the Closing. Except as otherwise expressly provided by this Agreement or with the prior written consent of Parent, during the period between the date of this Agreement and the Closing, the Company will, and will cause each of the Subsidiaries to, and the Shareholders will cause each of the Company and the Subsidiaries to, conduct its business and operations in the ordinary and usual course of business, in substantially the same manner as heretofore conducted, and use commercially reasonable efforts consistent therewith to preserve intact its properties, assets and business organization, to keep available the services of its officers, employees, consultants and contractors and to maintain its business relationships with customers, suppliers, distributors and others having commercially beneficial business relationships with it. Without limiting the generality of the foregoing, the Company will not, and will cause each of the Subsidiaries not to, and the Shareholders will cause each of the Company and the Subsidiaries not to, prior to the Closing, without the prior written consent of Parent:

 

 

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(a)     issue, sell or pledge, or authorize or propose the issuance, sale or pledge of, any (i) additional shares of capital stock or other equity interests, or securities convertible into or exchangeable for any such shares or interests, or any rights, warrants or options to acquire any such shares or interests or other convertible or exchangeable securities, or (ii) other securities in respect of, in lieu of, or in substitution for, any shares of capital stock or other equity interests outstanding on the date hereof;

 

(b)     split, combine or reclassify any shares of its capital stock or other equity interests;

 

(c)     declare or pay any dividend or distribution to any Person;

 

(d)     redeem, purchase or otherwise acquire any outstanding shares of capital stock or other equity interests;

 

(e)     propose or adopt any amendment to any of its organizational or governing documents;

 

(f)     (i) incur or assume any long-term or short-term debt or issue any debt securities; (ii) assume, guarantee, endorse or otherwise become liable or responsible (whether directly, contingently or otherwise) for the obligations of any other Person; (iii) make any loans, advances or capital contributions to, or investments in, any other Person; (iv) pledge or otherwise encumber any shares of its capital stock or other equity interests; (v) Transfer or permit to be Transferred any shares of capital stock or other equity interests of the Company or any Subsidiary; or (vi) mortgage or pledge any of its assets, tangible or intangible, or create or suffer to exist any Encumbrance thereupon;

 

(g)     (i) increase in any manner the rate or terms of compensation or benefits of any of its directors, officers, employees, consultants or contractors, except for increases to employees (other than officers), consultants or contractors made in the ordinary course of business consistent with past practice, (ii) pay or agree to pay any pension, retirement allowance or other benefit not required or permitted by any existing Benefit Plan or Employee Arrangement to any director, officer, employee, consultant or contractor, whether past or present, or (iii) adopt, enter into, terminate or amend any Benefit Plan or Employee Arrangement, other than Employee Arrangements with new employees entered into, or Employee Arrangements with employees terminated, in the ordinary course of business consistent with past practice;

 

(h)     acquire, sell, lease or dispose of any assets outside the ordinary and usual course of business consistent with past practice;

 

 

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(i)      acquire (by merger, consolidation or acquisition of stock or assets) any corporation, partnership or other business organization or entity or division thereof or any equity interest therein;

 

(j)      settle or compromise any pending or threatened suit, action, proceeding or, other than in the ordinary course of business consistent with past practice, claim;

 

(k)     fail to comply in any material respect with any Law or Permit applicable to it or any of its assets or allow any Permit to lapse;

 

(l)      sell, dispose of, or permit to lapse, or, other than in the ordinary course of business consistent with past practice, license, any rights to any material Intellectual Property (including any Nadaud Intellectual Property);

 

(m)     change any of its banking or safe deposit arrangements;

 

(n)     fail to maintain its books, accounts and records in the ordinary course on a basis consistent with prior years or make any change in the accounting principles, methods or practices used by it;

 

(o)     amend, modify, waive any material provision of (other than amendments, modifications or waivers in the ordinary course of business consistent with past practice) or terminate any Material Contract or enter into any Contract which, if entered into prior to the date hereof, would have been a Material Contract;

 

(p)      make any capital expenditures in excess of $10,000 in the aggregate;

 

(q)     satisfy, discharge, waive or settle any liabilities, other than in the ordinary course of business consistent with past practice;

 

(r)     (i) fail to timely file any Tax Return that is due, (ii) file any amended Tax Return or claim for refund, (iii) consent to any extension or waiver of the statute of limitations period applicable to any Tax claim or assessment, (iv) make any Tax election, or (v) settle or compromise any Tax liability; or

 

(s)     Take, propose to take, or agree in writing or otherwise to take any of the actions described in this Section 6.1 or any action that would make any of the representations or warranties contained in this Agreement untrue, incomplete or incorrect in any material respect.

 

Section 6.2     Access to Information. From the date of this Agreement to the Closing, the Company will (a) give Parent and its authorized Representatives reasonable access to all personnel, books, records, offices and other facilities and properties of the Company and the Subsidiaries, (b) permit Parent and its authorized Representatives to make such inspections thereof as Parent may reasonably request and (c) cause the officers and employees of the Company and the Subsidiaries to furnish Parent with such financial and operating data and other information with respect to the business and operations of the Company and the Subsidiaries as Parent may from time to time reasonably request; provided, however, that all access under this Section 6.2 shall be conducted at a reasonable time, during normal business hours, on reasonable advance notice and in such a manner as not to interfere unreasonably with the operation of the business of the Company and the Subsidiaries. All such information and access shall be subject to the terms and conditions of the Mutual Confidential Disclosure Agreement, dated August 8, 2014, between Parent and b-pack, Inc. (the “Confidentiality Agreement”). No investigation under this Section 6.2 shall affect or be deemed to modify any of the representations or warranties made by the Company or any of the Shareholders in this Agreement.

 

 

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Section 6.3     Disclosure Supplements. From time to time prior to the Closing, the Company will supplement or amend the Company Disclosure Schedule with respect to any matter hereafter arising or of which the Company becomes aware after the date hereof which, if existing, occurring or known at or prior to the date of this Agreement, would have been required to be set forth or described in the Company Disclosure Schedule or which is necessary to complete or correct any information in the Company Disclosure Schedule or in any representation or warranty which has been rendered inaccurate thereby. No such supplement or amendment shall be given effect for purposes of determining the satisfaction of the conditions set forth in Article VIII hereof.

 

Section 6.4     Consents and Approvals. Each of the parties hereto shall use its commercially reasonable efforts to obtain as promptly as practicable all consents, waivers, approvals, exemptions, licenses and authorizations required to be obtained from any Person or Governmental Entity in connection with the consummation of any of the Contemplated Transactions; provided, however, that no party is required to make any payment to any Person or Governmental Entity to obtain any consents, waivers, approvals, exemptions, licenses or authorizations.

 

Section 6.5     Filings. Promptly after the execution of this Agreement, each of the parties hereto shall prepare and make or cause to be made any required filings, registrations, submissions and notifications under the Laws of any jurisdiction to the extent necessary to consummate any of the Contemplated Transactions. 

 

Section 6.6     Further Assurances. 

 

(a)     Upon the terms and subject to the conditions herein provided, each of the parties hereto agrees to use its commercially reasonable efforts to take or cause to be taken all actions, and to do or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Contemplated Transactions. In furtherance and not in limitation of the covenants of the parties contained in this Section, if any administrative or judicial action or proceeding, including any proceeding by a private party, is instituted (or threatened to be instituted) challenging any Contemplated Transaction, each of Parent, Merger Sub, the Company and the Shareholders will cooperate in all respects with each other and use his or its respective commercially reasonable efforts to contest and resist any such action or proceeding and to have vacated, lifted, reversed or overturned any decree, judgment, injunction or other order, whether temporary, preliminary or permanent, that is in effect and that prohibits, prevents or restricts consummation of any of the Contemplated Transactions; provided, however, that no party is required to make any payment to any Person (other than its Representatives) in connection with the foregoing.

 

 

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(b)     The Company and the Shareholders will use their commercially reasonable efforts to have employees of the Company and the Subsidiaries identified by Parent execute and deliver to Parent a non-competition and non-solicitation agreement, subject to French or U.S. Law, as applicable, containing restrictions similar to those set forth in Section 7.5(a) and (b) of this Agreement, provision for injunctive relief and indemnification for breaches of such agreement and otherwise containing Parent’s customary terms and conditions. In addition, the Company and the Shareholders will use their commercially reasonable efforts to have employees of the Company and the Subsidiaries identified by Parent on or before the Closing Date execute and deliver to Parent a confidentiality and assignment of inventions agreement containing Parent’s customary terms and conditions, a copy of which has been provided to each of the Shareholders before the date hereof. Notwithstanding the foregoing, in no event is the Company or any Shareholder required to make any payment to employees of the Company and the Subsidiaries in connection with the foregoing.

 

(c)     Without further consideration hereunder, Nadaud agrees to execute and deliver, to such entity(ies) as directed by Parent (which, on the Closing Date, shall either be Parent or a direct or indirect wholly owned subsidiary of Parent), any and all documents and instruments, and to perform any acts, that may be deemed necessary or advisable by Parent to transfer, assign, vest, record, perfect, support and/or confirm the rights to the Nadaud Intellectual Property in and to such entity(ies), including such assignments, agreements and limited powers of attorney as may be deemed necessary or advisable by Parent to record or effectuate the transfer of the Nadaud Intellectual Property in the United States of America or any applicable foreign jurisdiction. The foregoing is hereinafter referred to as the “Nadaud Intellectual Property Transfer”.

 

(d)     The Company shall use its reasonable best efforts to (i) purchase from each of the shareholders of b-pack Services (the “b-pack Services Shareholders”) all of the shares of capital stock of b-pack Services owned by each such b-pack Services Shareholder, for a purchase price not to exceed the amount set forth next to each such b-pack Services Shareholder’s name on Section 6.6(d) of the Company Disclosure Schedule and otherwise on such terms and conditions as are acceptable to Parent (the “b-pack Services Share Sale”; the aggregate purchase price paid to all of the b-pack Services Shareholders in connection with the consummation of the b-pack Services Share Sale is hereinafter referred to as the “b-pack Services Purchase Price”), (ii) cause each of the b-pack Services Shareholders to execute and deliver a settlement and release agreement in a form acceptable to Parent, and (iii) convert b-pack Services to a société par actions simplifiée in a manner satisfactory to Parent following the b-pack Services Share Sale.

 

Section 6.7     Appointments. As of the Effective Time, Parent and Merger Sub, as applicable, shall cause the individuals listed as directors and officers in Section 1.5 of the Parent Disclosure Schedule to be elected or appointed to the positions set forth therein.

 

Section 6.8     Conduct of the Business of Parent Pending the Closing. Except as otherwise expressly provided by this Agreement or with the prior written consent of the Company, during the period between the date of this Agreement and the Closing, Parent covenants and agrees that it shall not (a) amend its certificate of incorporation or bylaws in a manner materially adverse to the Shareholders, except that, for the avoidance of doubt, the foregoing will not prevent Parent from amending its certificate of incorporation (without such consent) to increase its authorized share capital; or (b) declare, set aside or pay any dividend or other distribution payable in cash, stock or property with respect to any of its capital stock, other than dividends or distributions payable by a directly or indirectly wholly owned subsidiary of Parent to Parent or to another directly or indirectly wholly owned subsidiary of Parent.

 

 

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Section 6.9     Proxy Statement. 

 

(a)     Parent shall, in accordance with applicable Law: (i) prepare and file with the SEC a preliminary proxy statement relating to, among other matters, the Parent Stockholder Approval Matter (including any amendments or supplements thereto, the “Preliminary Proxy Statement”); (ii) respond as promptly as reasonably practicable to any comments made by the SEC with respect to the Preliminary Proxy Statement (including filing as promptly as reasonably practicable any amendments or supplements thereto necessary to be filed in response to any such comments or as required by Law); and (iii) cause a definitive proxy statement relating to, among other matters, the Parent Stockholder Approval Matter (including any amendments or supplements thereto, the “Proxy Statement”) to be filed with the SEC and mailed to its stockholders after the date that the SEC confirms it has no further comments.

 

(b)     Parent shall, in accordance with applicable Law, duly call, give notice of, convene and hold a meeting of its stockholders (the “Stockholders Meeting”) to, among other matters, consider and take action upon the approval of the Parent Stockholder Approval Matter. Parent shall (i) use commercially reasonable efforts to solicit the approval of the Parent Stockholder Approval Matter by the stockholders of Parent, and (ii) include in the Proxy Statement the recommendation of the Board of Directors of Parent that the stockholders of Parent approve the Parent Stockholder Approval Matter. The foregoing shall not prevent Parent from adjourning or postponing the Stockholders Meeting as and to the extent deemed necessary or advisable by the Board of Directors of Parent. 

 

ARTICLE VII
ADDITIONAL AGREEMENTS

 

Section 7.1     Acquisition Proposals. Neither the Company nor the Shareholders will, nor will any of them authorize or permit any officer, director, employee, consultant or contractor or any investment banker, attorney, accountant or other agent or Representative of any of the Company, the Subsidiaries or the Shareholders acting on any of their behalf to, directly or indirectly, (a) solicit, initiate or intentionally encourage the submission of any Acquisition Proposal or (b) participate in any discussions or negotiations regarding, or furnish to any Person any information in respect of, or take any other action to facilitate, any Acquisition Proposal or any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Acquisition Proposal. Immediately after the execution and delivery of this Agreement, each of the Company and the Shareholders will, and will cause its officers, directors, employees, investment bankers, attorneys, accountants and other agents and Representatives to, cease and terminate any existing activities, discussions or negotiations with any parties conducted heretofore in respect of any possible Acquisition Proposal and will promptly inform Parent of the receipt of any subsequent Acquisition Proposal. Each of the Company and the Shareholders will take all necessary steps to promptly inform the individuals or entities referred to in the first sentence of this Section 7.1 of the obligations undertaken in this Section 7.1. “Acquisition Proposal” means an inquiry, offer or proposal regarding any of the following (other than the Contemplated Transactions) involving any of the Company or the Subsidiaries: (i) any merger, consolidation, share exchange, recapitalization, business combination or other similar transaction; (ii) any sale of shares of capital stock or other equity interests or securities, (iii) any sale, lease, exchange, mortgage, pledge, Transfer or other disposition of all or any material portion of its assets in a single transaction or series of transactions; or (iv) any public announcement of a proposal, plan or intention to do any of the foregoing or any agreement to engage in any of the foregoing.

 

 

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Section 7.2     Public Announcements. Each of Parent and Merger Sub, on the one hand, and the Company and the Shareholders, on the other hand, will consult with one another before issuing any press release or otherwise making any public statements in respect of any of the Contemplated Transactions, including the Merger, and will not issue any such press release or make any such public statement without the prior written consent of the other party (which may be given by the Shareholders’ Agent on behalf of the Shareholders); provided, however, that (a) following the execution of this Agreement, Parent shall determine, in its sole discretion, whether or not to issue any public announcement with respect to the Contemplated Transactions and the content thereof (provided, however, that Parent shall consult with and consider any comments from the Shareholders’ Agent regarding the content of any such announcement) and (if Parent so chooses, in its sole discretion) may issue such public announcement, and (b) any party may at any time make disclosures regarding the Contemplated Transactions if it is advised by legal counsel that such disclosure is required under applicable Law or by a Governmental Entity or any listing agreement with a public securities exchange, in which case the disclosing party will consult with the other parties hereto prior to such disclosure. 

 

Section 7.3     Indemnification. 

 

(a)    Indemnification by the Shareholders. Subject to the other terms of this Section 7.3, the Shareholders will, jointly and severally, defend, indemnify and hold harmless Parent and the Surviving Entity (collectively, the “Parent Indemnified Parties”), from and against and in respect of any and all losses, liabilities, obligations, claims, actions, damages, judgments, penalties, fines, settlements and expenses, including reasonable attorneys’ fees (collectively, “Losses”), incurred by any of the Parent Indemnified Parties arising out of, based upon or related to (i) any inaccuracy or breach of any of the representations or warranties made by the Company or any of the Shareholders in this Agreement, (ii) any breach of or failure to comply with any covenant or agreement made by the Company or any of the Shareholders in this Agreement, (iii) the Working Capital Deficit, (iv) any claim by any of the b-pack Services Shareholders (as hereinafter defined) relating to the Company, any of the Subsidiaries, any of the Parent Indemnified Parties and/or any of the Contemplated Transactions, including the b-pack Services Share Sale (as hereinafter defined) (but in the case of this clause (iv), such indemnification shall not include amounts paid in settlement of up to 160,000 Euro of, and court costs and attorneys’ fees incurred in connection with, any action, suit or proceeding related to the b-pack Services Share Sale), or (v) any Company Taxes for any Tax period (or portion thereof) ending on or prior to the Closing Date, excluding 50% of any Transfer Taxes incurred in connection with this Agreement or any of the Contemplated Transactions. “Transfer Taxes” shall mean any transfer, documentary, sales, use, stamp, registration and other substantially similar Taxes and fees. 

 

 

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(b)     Indemnification by Parent. Subject to the other terms of this Section 7.3, Parent will defend, indemnify and hold harmless the Shareholders (collectively, the “Shareholder Indemnified Parties”) from and against and in respect of any and all Losses incurred by any of the Shareholder Indemnified Parties arising out of, based upon or related to (i) any inaccuracy or breach of any of the representations or warranties made by Parent or Merger Sub in this Agreement, (ii) any breach of or failure to comply with any covenant or agreement made by Parent or Merger Sub in this Agreement, or (iii) the Working Capital Surplus. 

 

(c)     Indemnification Procedure.

 

(i)     The Person seeking indemnification under this Section 7.3 (the “Indemnified Party”) shall give to the party(ies) from whom indemnification is sought (the “Indemnifying Party”) prompt written notice (in the case of indemnification under Section 7.3(a), such notice shall be given to the Shareholders’ Agent) of any third-party claim which may give rise to any indemnity obligation under this Section 7.3, and the Indemnifying Party will have the right to assume the defense of any such claim through counsel of its own choosing, by so notifying the Indemnified Party within 10 days of receipt of the Indemnified Party’s written notice; provided, however, that such counsel shall be reasonably satisfactory to the Indemnified Party. Failure of the Indemnified Party to give prompt notice shall not affect the Indemnifying Party’s indemnification obligations hereunder except to the extent the Indemnifying Party is materially prejudiced by such failure. If the Indemnified Party desires to participate in any such defense assumed by the Indemnifying Party, it may do so at its sole cost and expense; provided, however, that the Indemnified Party will be entitled to participate in any such defense with separate counsel at the expense of the Indemnifying Party if, in the reasonable judgment of counsel to the Indemnified Party, a conflict or potential conflict exists, or there are separate or additional defenses available to the Indemnified Party, that would make such separate representation advisable. If the Indemnifying Party declines to assume any such defense or fails to diligently pursue any such defense, then the Indemnifying Party will be liable for all reasonable costs and expenses incurred by the Indemnified Party in connection with investigating, defending, settling and/or otherwise dealing with such claim, including reasonable fees and disbursements of counsel. The parties hereto agree to cooperate with each other in connection with the defense of any such claim. The Indemnifying Party will not, without the prior written consent of the Indemnified Party, settle, compromise, or consent to the entry of any judgment with respect to any such claim, unless such settlement, compromise or judgment (A) does not result in the imposition of a consent order, injunction or decree that would restrict the future activity or conduct of the Indemnified Party or any Affiliate thereof, (B) does not involve any remedies other than monetary damages, and (C) includes an unconditional release of the Indemnified Party and its Affiliates for all liability arising out of such claim and any related claim. The Indemnified Party will not, without the prior written consent of the Indemnifying Party, which will not be unreasonably withheld, delayed or conditioned, settle, compromise, or consent to the entry of any judgment with respect to any such claim.

 

 

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(ii)     If an indemnification claim by any Indemnified Party is not disputed by the Indemnifying Party within 20 days after the Indemnifying Party’s having received written notice thereof, or has been resolved by a Law of a Governmental Entity, by a settlement of the indemnification claim in accordance with Section 7.3(c)(i), by agreement of the Indemnified Party and the Indemnifying Party or by the determination of the Final Working Capital Amount as provided in Section 2.2(c) (any of the foregoing, a “Resolution”), then (A) in the case of indemnification under Section 7.3(b), Parent will pay to the Shareholder Indemnified Party promptly following such Resolution an amount equal to the Losses of such Shareholder Indemnified Party as set forth in such Resolution, which, in the case of indemnification by Parent under Section 7.3(b)(iii) and in the event that the payment of cash to the Shareholder Indemnified Parties in satisfaction thereof would reasonably be expected to adversely impact the tax treatment of the Merger to the Shareholders, shall be satisfied by the delivery to the Shareholders of Parent Common Stock valued using the Resolution Date VWAP (as defined below), or (B) in the case of indemnification under Section 7.3(a), the Shareholders will pay to the Parent Indemnified Party promptly following such Resolution an amount equal to the Losses of such Parent Indemnified Party as set forth in such Resolution; provided, that, notwithstanding anything to the contrary in Section 7.3(c)(iii), at the election of the Shareholders, Losses of the Parent Indemnified Parties in excess of the amount of the Representations Claims Cap (as defined below) may be satisfied by the delivery by the Shareholders to Parent of Parent Common Stock valued using the Resolution Date VWAP.

 

(iii)     In lieu of an escrow arrangement, Parent may reacquire up to an aggregate of one-third of the Exchange Shares (the “Indemnification Shares”) from the Shareholders (with such reacquisition to be effected on a pro rata basis among the Shareholders based on the number of Exchange Shares received by each) to satisfy any Losses of any Parent Indemnified Party that are the subject of a Resolution at any time during the 18-month period following the Closing Date (the “Holding Period”). In such event, the Indemnification Shares will be valued using the average of the VWAP of the Parent Common Stock for the 30 consecutive trading days immediately prior to the date of the Resolution (the “Resolution Date VWAP”). The Shareholders agree and consent to Parent (A) entering stop transfer instructions with its transfer agent and registrar against the transfer of the Indemnification Shares during the Holding Period and (B) instructing its transfer agent and registrar to cancel on its books and records any Indemnification Shares to be reacquired by Parent hereunder. The provisions of this Section 7.3(c)(iii) do not preclude a Parent Indemnified Party from looking directly to the Shareholders for payment of any Losses as provided in Section 7.3(c)(ii).

 

(d)     Limitations.

 

(i)       The foregoing indemnification obligations under Section 7.3(a)(i) and 7.3(b)(i) will survive the consummation of the Merger until the eighteen (18)-month anniversary of the Closing Date; provided, however, that the right to indemnification arising out of, based upon or related to any inaccuracy or breach of any of the representations or warranties contained in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.13, 3.15, 3.17, 3.19, 3.20, 3.21, 4.1, 4.2, 4.3, 4.5, 4.6, 5.1, 5.2, 5.3, 5.4, 5.6 and the first sentence of Section 3.14(a) will survive until 60 days after the expiration of the applicable statute of limitations, including any extensions thereof, but in no event for a period greater than six (6) years after the Closing Date; and provided, further, that claims first asserted in writing within the applicable survival period will not thereafter be barred.

 

 

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(ii)      Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which are subject to the limitations in this Section 7.3(d)(ii)), the Shareholders will have no liability to the Parent Indemnified Parties for indemnification claims brought under Section 7.3(a)(i) until the total amount of Losses in respect of indemnification claims under such section exceeds $100,000 in the aggregate, and then the Parent Indemnified Parties will be entitled to recover all such amounts in excess of this $100,000 (which threshold, for the avoidance of doubt, will be determined by aggregating all such indemnification claims rather than on a per claim basis).

 

(iii)     (A) Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which will be counted towards the Representations Claims Cap), the maximum liability of the Shareholders for any and all Losses in respect of indemnification claims brought under Section 7.3(a)(i) shall be limited to an amount equal to $1,250,000 (the “Representations Claims Cap”) and (B) except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation (none of which will be counted towards the Aggregate Claims Cap), the maximum liability of the Shareholders for any and all Losses in respect of indemnification claims brought under Section 7.3(a) (other than claims subject to the Shareholders’ Representations Claims Cap) shall be limited to an amount equal to the sum of (I) $1,250,000 plus (II) the value of the Exchange Shares, determined by multiplying the total number of Exchange Shares by the Resolution Date VWAP (the “Aggregate Claims Cap”).

 

(iv)     Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which are subject to the limitations in this Section 7.3(d)(iv)), Parent will have no liability to the Shareholder Indemnified Parties for indemnification claims brought under Section 7.3(b)(i) until the total amount of Losses in respect of indemnification claims under such section exceeds $100,000 in the aggregate, and then the Shareholder Indemnified Parties will be entitled to recover all such amounts in excess of this $100,000 (which threshold, for the avoidance of doubt, will be determined by aggregating all such indemnification claims rather than on a per claim basis).

 

(v)     (A) Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which will be counted towards the Representations Claims Cap), the maximum liability of Parent for any and all Losses in respect of indemnification claims brought under Section 7.3(b)(i) shall be limited to an amount equal to the Representations Claims Cap, and (B) except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation (none of which will be counted towards the Aggregate Claims Cap), the maximum liability of Parent for any and all Losses in respect of indemnification claims brought under Section 7.3(b) (other than claims subject to Parent’s Representations Claims Cap) shall be limited to an amount equal to the Aggregate Claims Cap.

 

 

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(vi)     The right of an Indemnified Party to indemnification hereunder will not be affected by any investigation conducted, or any knowledge acquired (or capable or being acquired), at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy of, or compliance with, any of the representations, warranties, covenants or agreements set forth in this Agreement, except that, in such event, an Indemnified Party will not be entitled to indemnification with respect to any inaccuracy or breach of any representation, warranty, covenant or agreement that would result in the failure of a condition set forth in Article VIII if (i) the Indemnifying Party provided notice under Section 7.4 with respect to such inaccuracy or breach and (ii) the failure of such condition provides the Indemnified Party the right to terminate this Agreement under Article IX (without regard to notices or cure periods) or the ability to not consummate the Contemplated Transactions.

 

(vii)     For purposes of this Section 7.3, the terms “material”, “Company Material Adverse Effect” and “Parent Material Adverse Effect”, as such terms are used in any representation or warranty contained in Article III, IV or V, shall be disregarded and, for purposes of this Section 7.3, such representations and warranties shall be deemed to be not qualified by such terms.

 

(viii)    Notwithstanding anything to the contrary contained in this Section 7.3, the Shareholders shall not have any liability with respect to indemnification claims related solely to the inaccuracy or breach by an individual Shareholder of any of his representations or warranties under Article IV or covenants under Section 7.5, and the Shareholder responsible for such inaccuracy or breach will be liable for the full amount of the related indemnification claims, subject to the other limitations set forth in this Section 7.3(d).

 

(ix)      In calculating the amount of Losses recoverable pursuant to this Section 7.3, the amount of such Losses shall be reduced by (A) any insurance proceeds actually received by the Indemnified Party from any unaffiliated insurance carrier offsetting the amount of such Loss, net of any expenses incurred by the Indemnified Party in obtaining such insurance proceeds (including the payment of a deductible with respect to the same and any premium increase directly attributable thereto), and (B) any recoveries actually received by the Indemnified Party from other Persons pursuant to indemnification (or otherwise) with respect thereto, net of any expenses incurred by the Indemnified Party in obtaining such payment. If any Losses for which indemnification payments have actually been received by the Indemnifying Party hereunder are subsequently reduced by any insurance payment or other recovery actually received from another Person, the Indemnified Party shall promptly remit the amount of such recovery to the applicable Indemnifying Party (up to the amount of the payment by the applicable Indemnifying Party, after deducting therefrom the full amount of the expenses incurred by such Indemnified Party (i) in procuring such recovery or (ii) in connection with such indemnification to the extent required to be, but which have not been, paid or reimbursed).

 

(x)      Following the Closing Date, the sole and exclusive remedy of the Parent Indemnified Parties and the Shareholder Indemnified Parties for any of the matters set forth in this Section 7.3 shall be indemnification in accordance with this Section 7.3, except with respect to any claim arising out of, based upon or related to fraud or intentional misrepresentation or a breach of any of the covenants set forth in Section 7.5. Each Indemnified Party entitled to indemnification hereunder shall use commercially reasonable efforts to mitigate Losses for which it seeks indemnification hereunder, and the costs and expenses incurred in connection with such mitigation efforts shall be deemed Losses for purposes of this Section 7.3.

 

 

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(e)     The parties to this Agreement agree to treat any indemnity payment made pursuant to Section 7.3 as an adjustment to the aggregate Merger Consideration for U.S. federal, state, local and foreign income tax purposes.

 

Section 7.4     Notification of Certain Matters. From the date of this Agreement to the Closing, the Company or the Shareholders’ Agent (on behalf of the applicable Shareholder(s)), as applicable, will give prompt notice to Parent, and Parent will give prompt notice to the Company and the Shareholders’ Agent, of (a) the occurrence or nonoccurrence of any event the occurrence or nonoccurrence of which would be likely to cause any representation or warranty made by it contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Closing, (b) any failure of the Company, any Shareholder, Parent or Merger Sub, as the case may be, to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder, (c) any notice or other communication received from any third party alleging that the consent of such third party is or may be required in connection with any of the Contemplated Transactions, (d) in the case of the Company, any facts or circumstances that could reasonably be expected to result in a Company Material Adverse Effect, or (e) in the case of Parent, any facts or circumstances that could reasonably be expected to result in a Parent Material Adverse Effect; provided, however, that the delivery of any notice pursuant to this Section 7.4 will not cure such breach or non-compliance or limit or otherwise affect the rights, obligations or remedies available hereunder to the party receiving such notice.

 

Section 7.5     Non-Competition. As a material inducement to Parent’s consummation of the Contemplated Transactions, including Parent’s acquisition of the goodwill associated with the business of the Company and the Subsidiaries, each of the Shareholders agrees as follows:

 

(a)     Such Shareholder will not, for a period of two (2) years following the Closing Date (computed by excluding from such computation any time during which such Shareholder is found by a court of competent jurisdiction to have been in violation of any provision of this Section 7.5(a)) (the “Restricted Period”), directly or indirectly, for himself or on behalf of or in conjunction with any other Person, engage in, invest in or otherwise participate in (whether as an owner, employee, officer, director, manager, consultant, independent contractor, agent, partner, advisor, or in any other capacity) any business that competes with the business of any of the Company, the Subsidiaries or the Surviving Entity (such business, the “Restricted Business”) in any Restricted Area, or at any time following the Closing Date make any use of any Company Intellectual Property other than in connection with the business of any of the Company, the Subsidiaries or the Surviving Entity. Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit the acquisition as a passive investment of not more than two percent (2%) of the capital stock of a competing business whose stock is traded on a national securities exchange or over-the-counter and shall not be deemed to prohibit the acquisition of any capital stock of Parent.

 

 

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(b)     Such Shareholder will not, for a period of two (2) years following the Closing Date (computed by excluding from such computation any time during which such Shareholder is found by a court of competent jurisdiction to have been in violation of any provision of this Section 7.5(b)), directly or indirectly, for himself or on behalf of or in conjunction with any other Person, (i) solicit or hire (or assist or encourage any other Person to solicit or hire), or otherwise interfere in any manner with the employment or consulting relationship of, any Person who is an employee or consultant of any of Parent, the Company, the Subsidiaries, the Surviving Entity or any of Parent’s other subsidiaries (each, a “Restricted Entity”), other than by general public advertisement or other such general solicitation not specifically targeted at any such Person, (ii) induce or request any customer of any Restricted Entity to reduce, cancel or terminate its business with a Restricted Entity or otherwise interfere in any manner in any Restricted Entity’s business relationship with any of its customers, or (iii) solicit or accept business from any customer of any Restricted Entity in connection with a Restricted Business. For purposes of this Section 7.5(b), a Person shall be deemed to be an employee, consultant or customer of any Restricted Entity if any such relationship existed or exists at any time (A) during the thirty (30) days prior to the execution of this Agreement or (B) after the Closing Date and during the operation of this provision, and any such Person shall cease to have the applicable status one year after the termination of any such relationship.

 

(c)     Such Shareholder agrees that the foregoing covenants are reasonable with respect to their duration, geographic area and scope, to protect, among other things, Parent’s acquisition of the goodwill associated with the business of the Company and the Subsidiaries. If a judicial or arbitral determination is made that any provision of this Section 7.5 constitutes an unreasonable or otherwise unenforceable restriction against a Shareholder, then the provisions of this Section 7.5 shall be rendered void with respect to such Shareholder only to the extent such judicial or arbitral determination finds such provisions to be unenforceable. In that regard, any judicial or arbitral authority construing this Section 7.5 shall be empowered to sever any prohibited business activity, time period or geographical area from the coverage of any such agreements and to apply the remaining provisions of this Section 7.5 to the remaining business activities, time periods and/or geographical areas not so severed. Moreover, in the event that any provision, or the application thereof, of this Section 7.5 is determined not to be specifically enforceable, Parent shall nevertheless be entitled to recover monetary damages as a result of the breach of such agreement.

 

(d)     Such Shareholder acknowledges that he has carefully read and considered the provisions of this Section 7.5. Such Shareholder acknowledges that he has received and will receive sufficient consideration and other benefits to justify the restrictions in this Section 7.5. Such Shareholder also acknowledges and understands that these restrictions are reasonably necessary to protect interests of Parent, including protection of the goodwill acquired, and such Shareholder acknowledges that such restrictions will not prevent him from conducting businesses that are not included in the Restricted Business set forth in this Section 7.5 during the periods covered by the restrictive covenants set forth in this Section 7.5. Such Shareholder also acknowledges that the Contemplated Transactions constitute full and adequate consideration for the execution and enforceability of the restrictions set forth in this Section 7.5.

 

Section 7.6     Employee Matters.

 

(a)     The employees of the Company as of the Closing Date shall automatically become employees of the Surviving Entity at the same level of compensation and employee benefits (other than equity incentive arrangements) set forth in their respective employment contracts, subject to applicable provisions of French Law. 

 

 

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(b)     Parent shall reserve a total of 250,000 shares of Parent Common Stock underlying options to be granted to employees of the Company and the Subsidiaries other than the Shareholders and an additional 450,000 shares of Parent Common Stock underlying options to be granted to the Shareholders in accordance with the terms of their respective Employment Agreements. The options will be granted on or promptly following the Closing Date in accordance with an option schedule agreed to in writing by Parent and the Company prior to Closing. Parent agrees that it will file a Form S-8 registration statement on or prior to the Business Day immediately preceding the first date on which any option granted to the employees hereunder or to the Shareholders in connection with their Employment Agreements vests.

 

(c)     Nothing contained herein, express or implied: (i) shall be construed to establish, amend, or modify any benefit plan, program, agreement or arrangement, (ii) shall alter or limit Parent’s, the Surviving Entity’s, the Company’s or any Subsidiary’s ability to amend, modify or terminate any particular benefit plan, program, agreement or arrangement as long as Parent otherwise satisfies its obligations under this Section 7.6, (iii) is intended to confer upon any current or former employee any right to employment or continued employment for any period of time by reason of this Agreement, or any right to a particular term or condition of employment, or (iv) is intended to confer upon any individual (including employees, retirees, or dependents or beneficiaries of employees or retirees) any right as a third-party beneficiary of this Agreement.

 

Section 7.7     Tax Covenants.

 

(a)     To the extent permitted under applicable Law, the Company and the Shareholders shall close or terminate (or cause to be closed or terminated), as of the close of business on the Closing Date, each Tax period relating to any Company Tax or Company Tax Return. 

 

(b)     To the extent not filed prior hereto, the Shareholders’ Agent will prepare or cause to be prepared, in accordance with applicable Law and consistent with past practice of the Company, each Company Tax Return for each Pre-Closing Period. At least twenty (20) days prior to the date on which a Company Tax Return for a Pre-Closing Period is due (after taking into account any valid extension), the Shareholders’ Agent will deliver such Company Tax Return to Parent. No later than five (5) days prior to the date on which a Company Tax Return for a Pre-Closing Period is due (after taking into account any valid extension), Parent may make reasonable changes and revisions to such Company Tax Return. The Shareholders’ Agent will cooperate fully in making any reasonable changes and revisions to any Company Tax Return for a Pre-Closing Period. At least three (3) days prior to the date on which a Company Tax Return (as reasonably revised by Parent) for a Pre-Closing Period is due (after taking into account any valid extension), the Shareholders will pay to Parent an amount equal to any Company Tax due with respect to such Company Tax Return, and Parent will file such Company Tax Return.

 

 

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(c)     Parent will prepare and file each Company Tax Return for any Post-Closing Period or any Straddle Period in accordance with applicable Law. At least twenty (20) days prior to the date on which a Company Tax Return for a Straddle Period is due (after taking into account any valid extension), Parent will deliver such Company Tax Return to the Shareholders’ Agent. No later than five (5) days prior to the date on which a Company Tax Return for any Straddle Period is due (after taking into account any valid extension), the Shareholders’ Agent may make reasonable changes and revisions to such Company Tax Return. Parent will cooperate fully in making any reasonable changes and revisions to any Company Tax Return for any Straddle Period. At least three (3) days prior to the date on which such Company Tax Return (as reasonably revised by the Shareholders’ Agent) for a Straddle Period is due (after taking into account any valid extension), the Shareholders will pay to Parent an amount equal to the Company Tax on such Company Tax Return to the extent such Company Tax relates, as determined under Section 7.7(d), to the portion of such Straddle Period ending on and including the Closing Date. 

 

(d)     In the case of a Company Tax payable for a Straddle Period, the portion of such Company Tax that relates to the portion of the Straddle Period ending on the Closing Date will (i) in the case of a Tax other than a Tax based upon or related to income, employment, sales or other transactions, franchise or receipts, be deemed to be the amount of such Tax for the entire Straddle Period multiplied by a fraction the numerator of which is the number of days in the portion of the Straddle Period ending on the Closing Date and the denominator of which is the number of all of the days in the Straddle Period; and (ii) in the case of a Tax based upon or related to income, employment, sales or other transactions, franchise or receipts, be deemed equal to the amount that would be payable if the Straddle Period ended on the Closing Date and such Tax was based on an interim closing of the books as of the close of business on the Closing Date.

 

(e)     Each party will promptly forward to the other a copy of all written communications from any Governmental Entity relating to any Company Tax or Company Tax Return for a Pre-Closing Period or Straddle Period. Upon reasonable request, each party will make available to the other all information, records and other documents relating to any Company Tax or any Company Tax Return for a Pre-Closing Period or Straddle Period. The parties will preserve all information, records and other documents relating to a Company Tax or a Company Tax Return for a Pre-Closing Period or Straddle Period until the date that is six (6) months after the expiration of the statute of limitations applicable to the Company Tax or the Company Tax Return. Prior to transferring, destroying or discarding any information, records or documents relating to any Company Tax or any Company Tax Return for a Pre-Closing Period or Straddle Period, the applicable Shareholder will give to Parent reasonable written notice and, to the extent Parent so requests, such Shareholder will permit Parent to take possession of all such information, records and documents. In addition, the parties will cooperate with each other in connection with all matters relating to the preparation of any Company Tax Return or the payment of any Company Tax for a Pre-Closing Period or Straddle Period and in connection with any audit, action, suit, claim or proceeding relating to any such Company Tax or Company Tax Return, and Parent will have the right to control any such audit, action, suit, claim or proceeding. Nothing in this Section 7.7(e) will affect or limit any indemnity or similar provision or any representations, warranties or obligations of any of the parties. Each party will bear its own costs and expenses in complying with the provisions of this Section 7.7(e). 

 

 

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(f)     Parent and the Shareholders shall each be liable for and each shall pay when due fifty percent (50%) of all Transfer Taxes incurred in connection with this Agreement or any of the Contemplated Transactions. The party required by any legal requirement to file a Tax Return or other documentation with respect to such Transfer Taxes shall do so within the time period prescribed by Law, and the other party shall promptly reimburse such party for any Transfer Taxes for which the other party is responsible upon receipt of notice that such Transfer Taxes are payable. To the extent permitted by any applicable legal requirement, the parties hereto shall cooperate in taking reasonable steps to minimize any Transfer Taxes.

 

(g)     None of the Shareholders will make or request a refund of any Company Tax or with respect to any Company Tax Return or amend any Company Tax Return, unless Parent, in its reasonable discretion, consents in writing thereto. Parent will not be obligated to seek or request any refund of any Company Tax or amend any Company Tax Return, unless Parent is reimbursed for out-of-pocket costs incurred in preparing such Tax Return and Parent determines in its reasonable discretion that neither Parent nor any of its subsidiaries will be adversely impacted by filing such Tax Return.

 

(h)     Any Tax sharing or similar agreement with respect to or involving any of the Company or the Subsidiaries will be terminated as of the Closing Date, without liability to any party, and will have no further effect for any year (whether the current year, a future year or a past year). Any amounts payable under any Tax sharing or similar agreement will be cancelled as of the Closing Date, without any liability to any of the Company or the Subsidiaries.

 

Section 7.8     Shareholders’ Agent.

 

(a)     Each of the Shareholders hereby authorizes, directs and appoints Nadaud (the “Shareholders’ Agent”) to act as sole and exclusive agent, attorney-in-fact and representative of each Shareholder with respect to all matters arising under, in connection with or relating to this Agreement or any of the other Transaction Documents (except that, solely for purposes of this Section 7.8, Transaction Documents shall not be deemed to include the Employment Agreements), including (i) asserting, defending, prosecuting, litigating, arbitrating, negotiating, settling, releasing and resolving any matters, claims (including indemnification claims and claims for Losses), differences, disputes and controversies of any nature whatsoever under any of the Transaction Documents, (ii) provided that any such amendment or waiver does not disproportionately and adversely affect any Shareholder, entering into amendments of this Agreement and waivers of any of the provisions of this Agreement on behalf of the Shareholders, (iii) determining, giving and receiving notices and processes under any of the Transaction Documents, (iv) performing the rights and duties expressly assigned to the Shareholders’ Agent hereunder and under the other Transaction Documents, (v) engaging and employing agents and Representatives on behalf of the Shareholders and the Shareholders’ Agent in connection with all such matters under any of the Transaction Documents, (vi) entering into agreements (including releases) on behalf of the Shareholders with respect to any of the foregoing, and (vii) taking all actions and incurring all expenses as the Shareholders’ Agent shall reasonably deem necessary or prudent in connection with any of the foregoing; all on such terms and in such manner as he deems appropriate in his sole and absolute discretion. Any such actions taken, exercises of rights, power or authority, and any decision, determination, waiver, amendment or agreement made by the Shareholders’ Agent consistent herewith, shall be absolutely and irrevocably binding on each Shareholder as if such Shareholder personally had taken such action, exercised such rights, power or authority or made such decision, determination, waiver, amendment or agreement in such Shareholder’s individual capacity, and no Shareholder shall have the right to object, dissent, protest or otherwise contest the same. The Shareholders’ Agent will consult with each Shareholder prior to taking any action, and, in a reasonably prompt manner, provide written notice to each Shareholder of any action taken by the Shareholders’ Agent, pursuant to the authority delegated under this Section. Any action required to be taken by a Shareholder hereunder or under any of the other Transaction Documents or any such action which a Shareholder, at his or her election, has the right to take hereunder or under any of the other Transaction Documents, shall be taken only and exclusively by the Shareholders’ Agent and no Shareholder acting on his own shall be entitled to take any such action. 

 

 

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(b)     The appointment of the Shareholders’ Agent as attorney-in-fact pursuant hereto is coupled with an interest and is irrevocable. 

 

(c)     The Shareholders’ Agent hereby accepts the foregoing appointment and agrees to serve in such capacity, subject to the provisions hereof, for the period of time from and after the date hereof without compensation except for the reimbursement from the Shareholders of reasonable out-of-pocket expenses incurred by the Shareholders’ Agent in his capacity as such. Each Shareholder hereby waives all actual or potential conflicts of interest arising out of the Shareholders’ Agent’s activities or authority as Shareholders’ Agent and his relationships with any of the Company, the Subsidiaries, the Surviving Entity or Parent (whether before or after the Closing), whether as an employee, consultant, agent, director, officer, shareholder or other Representative.

 

(d)     The Shareholders will severally indemnify and hold harmless the Shareholders’ Agent from and against any and all Losses arising out of actions taken or omitted to be taken pursuant to the provisions of this Section 7.8 and such other provisions of this Agreement as may be applicable (except in the case of the individual bad faith or willful misconduct of the Shareholders’ Agent), including the reasonable fees of attorneys, accountants and other advisors and all costs and expenses of investigation and defense of claims. The several liability of each Shareholder under this Section 7.8(d) will equal the amount of such Losses multiplied by a fraction, the numerator of which shall be the aggregate Merger Consideration to be received by such Shareholder as set forth on Section 2.1(c) of the Company Disclosure Schedule, and the denominator of which shall be the aggregate Merger Consideration to be received by all of the Shareholders (other than the Shareholders’ Agent) as set forth on Section 2.1(c) of the Company Disclosure Schedule. 

 

(e)     Notwithstanding anything to the contrary contained in this Agreement, the Shareholders’ Agent shall have no liabilities, duties or responsibilities to the Shareholders except those expressly set forth herein or in any of the other Transaction Documents, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on behalf of any Shareholder shall otherwise exist against the Shareholders’ Agent. The Shareholders’ Agent shall not, by virtue of acting as Shareholders’ Agent or any of the actions taken in such capacity, be deemed to have assumed any liability or become responsible for any obligation of any Shareholder to any Person. 

 

 

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(f)     The Shareholders’ Agent may resign upon written notice to the Shareholders. In the event that the Person named in Section 7.8(a) is unable or unwilling to serve in such capacity under this Section 7.8 at any time, Xavier Pierre-Bez is hereby designated to serve as agent, attorney-in-fact and representative of each Shareholder under this Section 7.8 in the place of the Person who is unable or unwilling to so serve. Such successor agent, attorney-in-fact and representative shall thereupon succeed to and become vested with all the rights, powers, privileges and duties under this Section 7.8 of the Person unable or unwilling to so serve. 

 

(g)     Each of Parent, the Company, the Subsidiaries and the Surviving Entity (i) will be fully protected in relying upon and will be entitled to rely upon, and will have no liability to the Shareholders with respect to, agreements, actions, decisions and determinations of the Shareholders’ Agent in connection with this Agreement or any of the Transaction Documents, and (ii) will be entitled to assume that all agreements, actions, decisions and determinations of the Shareholders’ Agent in connection with this Agreement or any of the Transaction Documents are fully authorized by and binding upon all of the Shareholders.

 

(h)     The Shareholders’ Agent shall not be liable to any of the Shareholders or any of their respective heirs, successors, assigns, personal representatives or Affiliates for any decisions made or actions taken or omitted to be taken by the Shareholders’ Agent, except in the case of bad faith or willful misconduct. The Shareholders’ Agent may consult with legal counsel of his own choice with respect to all such matters.

 

Section 7.9     U.S. Restructuring. Prior to the Closing, all of the outstanding shares of b-Pack, Inc. will be transferred and assigned to Parent or a direct or indirect wholly-owned subsidiary of Parent (the “U.S. Restructuring”).

 

ARTICLE VIII
CONDITIONS TO CONSUMMATION OF THE MERGER

 

Section 8.1     Conditions to Each Party’s Obligations to Effect the Merger. The respective obligations of each party to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following conditions, any or all of which may be waived in writing in whole or in part by the party being benefited thereby, to the extent permitted by applicable Law:

 

(a)     Parent, Merger Sub, the Company and the Shareholders shall have timely obtained from each Governmental Entity all authorizations, approvals, licenses, permits, waivers and consents necessary for consummation of any of the Contemplated Transactions.

 

(b)     There shall not be in effect any Law of any Governmental Entity of competent jurisdiction restraining, enjoining, making illegal or otherwise preventing or prohibiting consummation of any of the Contemplated Transactions, or imposing any limitation on the operation or conduct of the business of the Company or any of the Subsidiaries after the Closing, and no Governmental Entity shall have instituted or threatened to institute any proceeding seeking any such Law.

 

 

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(c)     No action, suit or proceeding shall have been instituted or threatened against any of the parties hereto seeking to restrain, materially delay or prohibit, or to obtain substantial damages or other injunctive or other equitable relief with respect to, the consummation of any of the Contemplated Transactions, except as set forth in Section 8.1(c) of the Company Disclosure Schedule.

 

(d)     The Parent Stockholder Approval Matter shall have been approved by the stockholders of Parent.

 

(e)     The Company’s workers representatives and employees shall have been informed of the Contemplated Transactions and any related waiting periods shall have expired.

 

(f)     The filings and formalities required under the relevant provisions of the French Commercial Code for the Merger to become effective shall have been duly accomplished and any related waiting periods shall have expired.

 

(g)     The shareholders’ meetings of the Company and of Merger Sub shall have been convened and shall have resolved, in accordance with the relevant provisions of the French Commercial Code, that the Merger be approved under the terms set forth in this Agreement and that the Merger be effective as at the Effective Time.

 

Section 8.2     Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following additional conditions, any or all of which may be waived in writing in whole or part by Parent or Merger Sub to the extent permitted by applicable Law:

 

(a)     The representations and warranties of the Company and of each of the Shareholders contained herein qualified as to materiality or Company Material Adverse Effect shall be true and correct in all respects and those not so qualified shall be true and correct in all material respects as of the date hereof and at and as of the Closing Date as though such representations and warranties were made at and as of such date (except for representations and warranties made as of a specified date, which shall speak only as of the specified date).

 

(b)     Each of the Company and the Shareholders shall have performed or complied with in all material respects all agreements, covenants and conditions contained herein required to be performed or complied with by it prior to or at the time of the Closing.

 

(c)     Since the date of this Agreement, there shall not have been any event, change, effect, occurrence or circumstance that, individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect.

 

(d)     The Company and the Shareholders shall have delivered to Parent and Merger Sub certificates, dated the date of the Closing, signed by an executive officer of the Company and by the Shareholders, certifying as to the fulfillment of the conditions specified in Section 8.2(a), Section 8.2(b) and Section 8.2(c).

 

 

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(e)     All of the Company Consents set forth on Section 8.2(e) of the Company Disclosure Schedule shall have been obtained.

 

(f)     The Nadaud Intellectual Property Transfer shall have been completed.

 

(g)     The Company shall have delivered to Parent such audited and unaudited financial statements for the Company and the Subsidiaries, prepared in accordance with GAAP, as are required to be filed by Parent with its Current Report on Form 8-K in connection with the consummation of the Contemplated Transactions.

 

(h)     All proceedings of the Company, the Subsidiaries and the Shareholders that are required in connection with the Contemplated Transactions shall be reasonably satisfactory in form and substance to Parent and its counsel, and Parent and its counsel shall have received such evidence of any such proceedings, good standing certificates (if applicable), organizational and governing documents, certified if requested, as may be reasonably requested and is customary in transactions such as this one.

 

(i)     All shareholders agreements, voting agreements, registration rights agreements and similar agreements between or among any of the Company, the Subsidiaries, the Shareholders and/or any of their respective Affiliates (other than the Registration Rights Agreement), and all other agreements set forth on Section 8.2(i) of the Company Disclosure Schedule, shall have been terminated, without any further liability or obligation of any of the Company or the Subsidiaries thereunder, and shall cease to be of force or effect.

 

Section 8.3     Conditions to the Obligations of the Company and the Shareholders. The respective obligations of the Company and the Shareholders to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following additional conditions, any or all of which may be waived in writing in whole or in part by the Company and the Shareholders’ Agent to the extent permitted by applicable Law:

 

(a)     The representations and warranties of Parent and Merger Sub contained herein qualified as to materiality or Parent Material Adverse Effect shall be true and correct in all respects and those not so qualified shall be true and correct in all material respects as of the date hereof and at and as of the Closing Date as though such representations and warranties were made at and as of such date (except for representations and warranties made as of a specified date, which shall speak only as of the specified date).

 

(b)     Each of Parent and Merger Sub shall have performed or complied with in all material respects all agreements, covenants and conditions contained herein required to be performed or complied with by it prior to or at the time of the Closing.

 

(c)     Since the date of this Agreement, there shall not have been any event, change, effect, occurrence or circumstance that, individually or in the aggregate, has had or would reasonably be expected to have a Parent Material Adverse Effect.

 

(d)     Parent and Merger Sub shall have delivered to the Shareholders’ Agent a certificate, dated the Closing Date, signed by an executive officer of each of Parent and Merger Sub, certifying as to the fulfillment of the conditions specified in Section 8.3(a), Section 8.3(b) and Section 8.3(c).

 

 

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(e)     All of the Parent Consents shall have been obtained.

 

(f)     All proceedings of Parent and Merger Sub that are required in connection with the Contemplated Transactions shall be reasonably satisfactory in form and substance to the Company and its counsel, and the Company and its counsel shall have received such evidence of any such proceedings, good standing certificates (if applicable), organizational and governing documents, certified if requested, as may be reasonably requested and is customary in transactions such as this one.

 

Section 8.4     Closing Deliveries. At Closing, the following documents will be delivered, or caused to be delivered, to the parties as set forth in each subsection:

 

(a)     Parent shall deliver to the Shareholders the Registration Rights Agreement.

 

(b)     Each of the Shareholders shall deliver to Parent the Registration Rights Agreement.

 

(c)     Parent or the Surviving Entity, as applicable, shall deliver to the Shareholders the Employment Agreements.

 

(d)     Each of the Shareholders shall deliver to Parent or the Surviving Entity, as applicable, his Employment Agreement.

 

(e)     Each of the Shareholders shall deliver to Parent duly executed share transfer forms (orders de mouvement) for their shares in the Surviving Entity.

 

ARTICLE IX
TERMINATION

 

Section 9.1     Termination by Mutual Agreement. This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time, by mutual written consent of Parent and the Company.

 

Section 9.2     Termination by either Parent or Company. This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time by Parent or the Company if:

 

(a)     the Merger shall not have been consummated by July 15, 2015; 

 

(b)     any Law permanently restraining, enjoining or otherwise prohibiting or preventing consummation of the Merger shall become final and non-appealable; or

 

(c)     the Stockholders Meeting shall have concluded and the Parent Stockholder Approval Matter shall not have been approved;

 

 

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provided, however, that the right to terminate this Agreement pursuant to Section 9.2 shall not be available to any party (and in the case of Company, including any Shareholder) that has breached in any material respect its obligations under this Agreement in any manner that shall have proximately contributed to the occurrence of the failure of the Merger to be consummated.

 

Section 9.3     Termination by the Company. This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time by the Company, if any representation of Parent or Merger Sub contained in this Agreement shall have been inaccurate, or Parent or Merger Sub shall have breached any representation, warranty, covenant or other agreement contained in this Agreement, in any such event that would give rise to the failure of a condition set forth in Section 8.3(a) or (b) hereof, which inaccuracy or breach cannot be or has not been cured within twenty (20) days after the giving of written notice by the Company to Parent thereof.

 

Section 9.4     Termination by Parent. This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time by Parent, if any representation of the Company or any of the Shareholders contained in this Agreement shall have been inaccurate, or the Company or any of the Shareholders shall have breached any representation, warranty, covenant or other agreement contained in this Agreement, in any such event that would give rise to the failure of a condition set forth in Section 8.2(a) or (b) hereof, which inaccuracy or breach cannot be or has not been cured within twenty (20) days after the giving of written notice by Parent to the Company thereof.

 

Section 9.5     Effect of Termination and Abandonment. In the event of the termination of this Agreement and the abandonment of the Merger pursuant to this Article IX, this Agreement (other than this Section 9.5, the second sentence of Section 6.2, Section 7.2 and Article X) shall become void and of no effect with no liability on the part of any party hereto (or of any of its directors, officers, employees, consultants, contractors, agents, attorneys or other Representatives); provided, however, that no such termination shall relieve any party hereto of any liability or damages resulting from any willful breach of this Agreement by such party.

 

ARTICLE X
MISCELLANEOUS

 

Section 10.1     Entire Agreement; Assignment.

 

(a)     This Agreement (including the exhibits hereto, the Parent Disclosure Schedule and the Company Disclosure Schedule) and the Confidentiality Agreement constitute the entire agreement among the parties hereto in respect of the subject matter hereof and supersede all other prior agreements and understandings, both written and oral, among the parties in respect of the subject matter hereof.

 

(b)     Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by the Company or any of the Shareholders, on the one hand, or Parent or Merger Sub, on the other hand, without the prior written consent of the other party(ies). Any assignment in violation of the preceding sentence shall be void.

 

 

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Section 10.2     Notices. All notices, requests, demands, instructions and other documents and communications to be given under this Agreement shall be in writing and shall be deemed given (a) three (3) Business Days following sending by registered or certified mail, postage prepaid, (b) when sent if sent by facsimile or email, provided that in the case of facsimile receipt is confirmed and in the case of e-mail the e-mail is not returned with an undeliverable, delayed or similar message, (c) when delivered, if delivered personally to the intended recipient, and (d) one Business Day following sending by overnight delivery via a nationally recognized overnight courier service, and in each case, addressed to a party at the following address for such party:

 

 

	 	if to Parent	 
	 	
or Merger Sub, to:
	
Selectica, Inc.
2121 South El Camino Real

	 	 	
San Mateo, California 94403

Attention: Art Fisher, Esq.
Email: afisher@selectica.com

 

	 	with a copy (which shall
	 	
not constitute notice) to:
	
Olshan Frome Wolosky LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
Attention: Robert H. Friedman, Esq.
Facsimile: (212) 451-2222

Email: rfriedman@olshanlaw.com

 

and

 

	 	 	Kramer Levin Naftalis & Frankel LLP

47, Avenue Hoche

Paris 75008

Attention: Alexander Marquardt, Esq.
Facsimile: + (33) 1.44.09.46.01

Email: amarquardt@kramerlevin.com 

	 	 	 
	 	if to the Company	 
	 	
or any Shareholder, to:
	
c/o b-pack, Inc.

	 	 	
900 Circle 75 Pkwy
Suite 825
Atlanta, Georgia 30339

Attention: Julien Nadaud

Fax: (404) 537 3056
Email: jnadaud@b-pack.com 

 

 

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	 	with a copy (which shall	 
	 	
not constitute notice) to:
	
SBKG & associés - A.A.R.P.I.

	 	 	
9, rue Alfred de Vigny - 75008 Paris
Attention: Julien Mayeras
Facsimile: +33 (0)1 40 53 09 08 

Email: jmayeras@sbkg.eu 

 

	 	if to the Surviving	 
	 	
Entity, to:
	
The parties at the addresses set forth above, with a copy to their respective counsel

 

or to such other address, email address or facsimile number as the party to whom notice is given shall have previously furnished to the other parties in writing in the manner set forth above.

 

Section 10.3     Governing Law; Jurisdiction; Waiver of Jury Trial. 

 

(a)     Except as otherwise provided in paragraph (b) below, this Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware, without giving effect to the choice of law principles thereof to the extent that the application of the Laws of another jurisdiction would be required thereby. All actions, suits or proceedings arising out of or relating to this Agreement or any of the Contemplated Transactions shall be heard and determined exclusively in any Delaware state or federal court. The parties hereto hereby (a) submit to the exclusive jurisdiction of any state or federal court sitting in Delaware for the purpose of any action, suit or proceeding arising out of or relating to this Agreement or any of the Contemplated Transactions, and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, suit or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the action, suit or proceeding is improper, or that this Agreement or any of the Contemplated Transactions may not be enforced in or by any of the above-named courts. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each of the parties hereto hereby consents to process being served by any party to this Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of Section 10.2. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

 

(b)     The Merger shall be governed by the relevant applicable French law (Article L.236-1 and the following of the French Commercial Code).

 

Section 10.4     Expenses. All fees and out-of-pocket expenses incurred by the Company or any of the Shareholders in connection with this Agreement, any of the other Transaction Documents or any of the Contemplated Transactions (including the fees and expenses of counsel, accountants, consultants and any broker, finder or financial advisor) will be paid by the Shareholders and all fees and out-of-pocket expenses incurred by Parent or Merger Sub in connection with this Agreement, any of the other Transaction Documents or any of the Contemplated Transactions (including the fees and expenses of counsel, accountants, consultants and any broker, finder or financial advisor) will be paid by Parent.

 

 

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Section 10.5     Descriptive Headings. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement.

 

Section 10.6     Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and its successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

 

Section 10.7     Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

Section 10.8     Specific Performance. Notwithstanding Section 7.3(d)(x), the parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent any breach or threatened of this Agreement and to enforce specifically the terms and provisions of this Agreement, without the requirement to post a bond or other security, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section 10.9     Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto. Facsimile or .pdf signatures shall have the same force and effect as original signatures.

 

Section 10.10     Interpretation.

 

(a)     The words “hereof,” “herein,” “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and article, section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” All terms defined in this Agreement shall have the defined meanings contained herein when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, qualified or supplemented, including (in the case of agreements and instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and all attachments thereto and instruments incorporated therein. References to a Person are also to its successors and permitted assigns. References to “$” shall mean U.S. dollars.

 

 

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(b)     The phrases “the date of this Agreement,” “the date hereof,” and terms of similar import, unless the context otherwise requires, shall be deemed to refer to the date set forth in the opening paragraph of this Agreement.

 

(c)     The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

Section 10.11     Amendment and Modification; Waiver. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to this Agreement signed by Parent, Merger Sub, the Company and the Shareholders’ Agent. No action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 

 

Section 10.12     Definitions. As used herein,

 

“Affiliate” has the meaning given to it in Rule 12b-2 of Regulation 12B under the Exchange Act.

 

“b-pack Services” means B-Pack Services, a French société anonyme registered with the Registry of Commerce and Companies of Aix-en-Provence under RCS n° 434 798 369.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which banks in the State of New York or in France generally are closed for regular banking business.

 

“Charrat Employment Agreement” means the Employment Agreement between the Surviving Entity and Bruno Charrat in the form attached hereto as Exhibit D.

 

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

 

 

- 53 -

 

 

“Company Consents” means each of the consents, waivers, approvals, exemptions, declarations, licenses, authorizations, permits, registrations, filings and notifications of or with each Governmental Entity or under or pursuant to each Contract listed in Section 3.5 of the Company Disclosure Schedule required to be made or obtained in connection with the execution or delivery of any of the Transaction Documents by the Company, the performance by the Company of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions by the Company.

 

“Company Material Adverse Effect” means any event, development, change, circumstance, effect, occurrence or condition that, either individually or in the aggregate, (i) has caused or would reasonably be expected to cause a material adverse effect on the business, operations, financial condition or results of operations of the Company and the Subsidiaries, taken as a whole, or (ii) prevents or materially impairs or delays the ability, or would reasonably be expected to prevent or materially impair or delay the ability, of the Company or any of the Shareholders to perform any of their respective obligations under any of the Transaction Documents or to consummate any of the Contemplated Transactions.

 

“Company Tax” means any Tax, if and to the extent that any of the Company or the Subsidiaries is or may be potentially liable under applicable Law, under Contract or on any other grounds (including, but not limited to, as a transferee or successor, under Code Section 6901 or Treasury Regulation Section 1.1502-6 (or similar provision of applicable Law), as a result of any Tax sharing or other agreement, or by operation of Law) for any such Tax.

 

“Company Tax Return” means any Tax Return filed or required to be filed with any Governmental Entity, if, in any manner or to any extent, relating to or inclusive of any of the Company or the Subsidiaries or any Company Tax.

 

“Contemplated Transactions” means the transactions contemplated by this Agreement and the other Transaction Documents, including the Merger, the Share Exchange, the b-pack Services Share Sale, the Nadaud Intellectual Property Transfer and the U.S. Restructuring.

 

“Contract” means any written or oral contract, agreement, license, lease, instrument or note that creates a legally binding obligation.

 

“Current Assets” means cash, cash equivalents and accounts receivable (less allowances for doubtful accounts), inventory (less reserves for obsolete or excess inventory), notes receivable, deposits and prepaid expenses, but excluding prepaid income and/or corporation taxes or VAT, deferred tax assets, the current portion of long-term notes receivable, and receivables from any Affiliate of any of the Company or the Subsidiaries or from any director, employee, officer or shareholder of any of the Company or the Subsidiaries or any of their respective Affiliates (each such Person, a “Related Party”), all determined in accordance with GAAP. For the avoidance of doubt, Current Assets will be reduced by an amount equal to the b-pack Services Purchase Price, regardless of when the b-pack Services Share Sale is consummated, whether before or after the Closing, and the fair value of the minority interests in b-pack Services subject to the b-pack Services Share Sale shall be disregarded.

 

 

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“Current Liabilities” means accounts payable and accrued expenses (including commissions payable), customer prepayments and deferred revenue, but excluding income and/or corporation taxes or VAT payable or accrued, deferred tax liabilities, payables to any Related Parties that are outside of the ordinary course of business, or inconsistent with the prior payroll practices, of any of the Company or the Subsidiaries, and the current portion of long-term debt, all determined in accordance with GAAP. For the avoidance of doubt, Current Liabilities will also be deemed to include (i) any obligations or liabilities of the Company or any of the Subsidiaries to Coface, including any unrecorded portion thereof, (ii) any subsidies from OSEO to the Company or any of the Subsidiaries, and (iii) any retirement obligations for current and former French employees.

 

“Employment Agreements” means the Charrat Employment Agreement, the Nadaud Employment Agreement and the Pierre-Bez Employment Agreement. 

 

“Encumbrance” means any lien, encumbrance, security interest, claim, charge, surety, mortgage, option, pledge, easement, limitation or restriction (including on any right to vote or Transfer any asset or security) of any nature whatsoever.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“French Agreement of Merger” means the merger agreement to be executed between the Company and Merger Sub in the form to be mutually agreed upon by the parties.

 

“French GAAP” means the generally accepted accounting principles in France as applied by the Company on a consistent basis throughout the periods involved. A copy of the accounting principles of the Company is attached as Section 10.12 of the Company Disclosure Schedule.

 

“Fundamental Representations” means the representations and warranties contained in Sections 3.1, 3.2, 3.3, 3.4, 3.13, 3.15, 3.20, 4.1, 4.2, 4.5, 4.6, 5.1, 5.2, 5.3, 5.6 and the first sentence of Section 3.14(a).

 

“GAAP” means United States generally accepted accounting principles applied on a consistent basis throughout the periods involved.

 

“Intellectual Property” means all intellectual property rights arising from or in respect of the following: (i) all patents and applications therefor, including continuations, divisionals, provisionals, continuations-in-part, or reissues of patent applications and patents issuing thereon (collectively, “Patents”), (ii) all trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, slogans, Internet domain names and individual, corporate and business names, together with the goodwill associated with any of the foregoing, and all applications, registrations and renewals thereof (collectively, “Trademarks”), (iii) copyrights and registrations and applications therefor, works of authorship and mask work rights (collectively, “Copyrights”), (iv) all computer programs and software (including any and all software implementations of algorithms, models and methodologies, whether in source code, object code or other form, but excluding off-the-shelf commercial or shrink-wrap software), databases and compilations (including any and all data and collections of data), and all descriptions, flow-charts and other work product used to design, plan, organize or develop any of the foregoing, screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons, all technology supporting any of the foregoing, and all documentation, including user manuals and other training documentation, related to any of the foregoing (collectively, “Software”), and (v) all trade secrets, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development, technical data, programs, specifications, processes, inventions (whether patentable or unpatentable and whether or not reduced to practice), creations, improvements and other similar materials, and all recordings, graphs, drawings, reports, analyses and other works of authorship, and other tangible embodiments of the foregoing, in any form, and all related technology.

 

 

- 55 -

 

 

“Knowledge” means the actual knowledge, after reasonable inquiry of any individuals who are wholly or partially responsible for overseeing, managing or handling an applicable subject matter or aspect of the business, of (i) in the case of the Company, each of the Shareholders, (ii) in the case of a Shareholder, such Shareholder, and (ii) in the case of Parent, Michael Brodsky, Blaine Mathieu, Jeffrey Grosman, Todd Spartz and Art Fisher.

 

“Law” means any order, writ, injunction, decree, judgment, permit, license, ordinance, law, statute, rule, regulation, administrative interpretation, directive or other requirement of any Governmental Entity.

 

“Nadaud Employment Agreement” means the Employment Agreement between Parent and Nadaud in the form attached hereto as Exhibit B.

 

“Parent Material Adverse Effect” means any event, development, change, circumstance, effect, occurrence or condition that, either individually or in the aggregate, (i) has caused or would reasonably be expected to cause a material adverse effect on the business, operations, financial condition or results of operations of Parent and its subsidiaries, taken as a whole, or (ii) prevents or materially impairs or delays the ability, or would reasonably be expected to prevent or materially impair or delay the ability, of Parent or Merger Sub to perform any of their respective obligations under any of the Transaction Documents or to consummate any of the Contemplated Transactions.

 

“Person” means an individual, corporation, limited liability company, partnership, association, trust, unincorporated organization, other entity or group (as defined in the Exchange Act).

 

“Pierre-Bez Employment Agreement” means the Employment Agreement between the Surviving Entity and Xavier Pierre-Bez in the form attached hereto as Exhibit C.

 

“Pre-Closing Period” means any Tax period ending on or before the Closing Date. 

 

“Post-Closing Period” means any Tax period beginning after the Closing Date.

 

“Registration Rights Agreement” means the Registration Rights Agreement among Parent and the Shareholders in the form attached hereto as Exhibit A.

 

 

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“Representative” means, with respect to any Person, each of such Person’s Affiliates, directors, officers, employees, partners, members, managers, consultants, advisors, accountants, attorneys, representatives and agents.

 

“Restricted Area” means any geographical area in which a material amount of the business of any of the Company, the Subsidiaries or the Surviving Entity is conducted or pursued as of the Closing Date or at any time during the Restricted Period.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Straddle Period” means any Tax period beginning before the Closing Date and ending after the Closing Date.

 

“Subsidiaries” means b-pack Services, b-pack, Inc., a Georgia corporation, and b-pack Software, a French société par actions simplifiée.

 

“Tax” means any tax, charge, deficiency, duty, fee, levy, toll or other amount (including any net income, gross income, profits, gross receipts, excise, property, sales, ad valorem, withholding, social security, retirement, excise, employment, unemployment, minimum, alternative, add-on minimum, estimated, severance, stamp, occupation, environmental, premium, capital stock, disability, windfall profits, use, service, net worth, payroll, franchise, license, gains, customs, transfer, recording, registration or other tax) assessed or otherwise imposed by any Governmental Entity or under applicable Law, together with any interest, penalties or any other additions or increases.

 

“Tax Return” means mean any return, election, declaration, report, schedule, information return, document, information, opinion, statement, or any amendment to any of the foregoing (including any consolidated, combined or unitary return and any related or supporting information) with respect to Taxes.

 

“Transaction Documents” means this Agreement, the French Agreement of Merger, the Registration Rights Agreement and the Employment Agreements.

 

“Transfer” means any sale, assignment, pledge, hypothecation or other disposition or Encumbrance.

 

“Treasury Regulations” means the regulations promulgated under the Code.

 

 

- 57 -

 

 

“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Nasdaq Capital Market (or, if the Nasdaq Capital Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined in good faith by Parent and the Shareholders’ Agent. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during such period.

 

“Working Capital” means (i) all of the Current Assets of the Company and the Subsidiaries, less (ii) all of the Current Liabilities of the Company and the Subsidiaries, determined as of the close of business on the last Business Day prior to the Closing.

 

[SIGNATURE PAGE FOLLOWS]

 

 

- 58 -

 

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed on its behalf as of the date first above written.

 

	  	
SELECTICA, INC. 

on behalf of itself and Selectica France SAS (pending incorporation)

	  	  
	  	
By:
	  
	  	  	
Name:
	  
	  	  	
Title:
	  

 

	  	
B-PACK SAS

	  	  
	  	
By:
	  
	  	  	
Name:
	  
	  	  	
Title:
	  

 

	  	
SHAREHOLDERS:

	  	  
	  	  
	  	
Julien Nadaud

 

	  	  
	  	  
	  	  
	  	
Xavier Pierre-Bez

 

 

	  	  
	  	  
	  	  
	  	
Bruno Charrat

 

 

- 59 -

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