Document:

EXHIBIT 4.1

 

Dated 13 May 2011

 

as amended on 14 June 2011 and as amended and restated on 30 November 2012

 

LUXFER HOLDINGS PLC

 

LLOYDS TSB BANK PLC and CLYDESDALE BANK PLC (TRADING AS YORKSHIRE BANK)

as Mandated Lead Arrangers

 

THE PARTIES LISTED IN PART 1 OF SCHEDULE 1

as Borrowers

 

THE PARTIES LISTED IN PART 2 OF SCHEDULE 1

as Guarantors

 

LLOYDS TSB BANK PLC

as Agent

 

 

SENIOR FACILITIES AGREEMENT

 

 

 

 

Contents

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
Clause
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
Definitions and   interpretation
    	
 
    	
1
    
	
2
    	
The Facility
    	
 
    	
34
    
	
3
    	
Purpose
    	
 
    	
36
    
	
4
    	
Conditions of utilisation
    	
 
    	
37
    
	
5
    	
Utilisation
    	
 
    	
38
    
	
6
    	
Optional currencies
    	
 
    	
40
    
	
7
    	
Ancillary Facilities
    	
 
    	
40
    
	
8
    	
Bilateral Facilities
    	
 
    	
45
    
	
9
    	
Repayment
    	
 
    	
45
    
	
10
    	
Illegality, voluntary   prepayment and cancellation
    	
 
    	
46
    
	
11
    	
Mandatory prepayment
    	
 
    	
48
    
	
12
    	
Restrictions
    	
 
    	
50
    
	
13
    	
Interest
    	
 
    	
50
    
	
14
    	
Interest Periods
    	
 
    	
51
    
	
15
    	
Changes to the calculation   of interest
    	
 
    	
52
    
	
16
    	
Fees
    	
 
    	
54
    
	
17
    	
Tax gross up and indemnities
    	
 
    	
55
    
	
18
    	
Increased costs
    	
 
    	
65
    
	
19
    	
Other indemnities
    	
 
    	
66
    
	
20
    	
Mitigation by the Lenders
    	
 
    	
67
    
	
21
    	
Costs and expenses
    	
 
    	
68
    
	
22
    	
Guarantee and indemnity
    	
 
    	
68
    
	
23
    	
Representations
    	
 
    	
72
    
	
24
    	
Information undertakings
    	
 
    	
82
    
	
25
    	
Financial covenants
    	
 
    	
87
    
	
26
    	
General undertakings
    	
 
    	
92
    
	
27
    	
Events of Default
    	
 
    	
101
    
	
28
    	
Changes to the Lenders
    	
 
    	
107
    
	
29
    	
Restriction on Debt Purchase   Transactions
    	
 
    	
112
    
	
30
    	
Changes to the Obligors
    	
 
    	
113
    
	
31
    	
Role of the Agent, the   Arrangers and others
    	
 
    	
115
    
	
32
    	
Conduct of business by the   Finance Parties
    	
 
    	
123
    
	
33
    	
Sharing among the Finance   Parties
    	
 
    	
123
    
	
34
    	
Payment mechanics
    	
 
    	
125
    
	
35
    	
Set-off
    	
 
    	
128
    
	
36
    	
Notices
    	
 
    	
129
    
	
37
    	
Calculations and   certificates
    	
 
    	
131
    
	
38
    	
Partial invalidity
    	
 
    	
131
    
	
39
    	
Remedies and waivers
    	
 
    	
131
    
	
40
    	
Amendments and waivers
    	
 
    	
131
    
	
41
    	
Confidentiality
    	
 
    	
134
    
	
42
    	
Publicity
    	
 
    	
138
    
	
43
    	
Counterparts
    	
 
    	
138
    
	
44
    	
Governing law
    	
 
    	
138
    
	
45
    	
Enforcement
    	
 
    	
138
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Schedule
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
Part 1 - Original   Borrowers
    	
 
    	
140
    

 

 

	
 
    	
Part 2 - Original   Guarantors
    	
 
    	
140
    
	
 
    	
Part 3 - The Original   Lenders
    	
 
    	
141
    
	
 
    	
Commitments as at the   Restatement Date
    	
 
    	
141
    
	
2
    	
Conditions precedent
    	
 
    	
142
    
	
 
    	
Part 1 - Conditions   precedent to signing this Agreement
    	
 
    	
142
    
	
 
    	
Part 2 - Conditions   precedent to initial Utilisation
    	
 
    	
144
    
	
 
    	
Part 3 - Conditions   precedent required to be delivered by an Additional Obligor
    	
 
    	
148
    
	
3
    	
Requests and Notices
    	
 
    	
150
    
	
 
    	
Part 1 — Utilisation   Request
    	
 
    	
150
    
	
 
    	
Part 2 - Not used
    	
 
    	
152
    
	
 
    	
Part 3 - Withdrawal Request
    	
 
    	
153
    
	
4
    	
Mandatory Cost Formula
    	
 
    	
154
    
	
5
    	
Form of Transfer   Certificate
    	
 
    	
157
    
	
6
    	
Form of Assignment   Agreement
    	
 
    	
160
    
	
7
    	
Form of Accession Deed
    	
 
    	
164
    
	
8
    	
Form of Resignation   Letter
    	
 
    	
167
    
	
9
    	
Form of Compliance   Certificate
    	
 
    	
168
    
	
10
    	
Timetables
    	
 
    	
170
    
	
11
    	
Form of Increase   Confirmation
    	
 
    	
171
    
	
12
    	
Forms of Notifiable Debt   Purchase Transaction Notice
    	
 
    	
175
    
	
 
    	
Part 1 - Form of   Notice on Entering into Notifiable Debt Purchase Transaction
    	
 
    	
175
    
	
 
    	
Part 2   - Form of Notice on Termination of Notifiable Debt Purchase Transaction   / Notifiable Debt Purchase Transaction ceasing to be with Sponsor Affiliate
    	
 
    	
176
    

 

 

This Agreement dated 13 May 2011 as amended on 14 June 2011 and as amended and restated on 30 November 2012

 

Between

 

(1)                                 Luxfer Holdings PLC (registered in England and Wales with number 3690830) (Company);

 

(2)                                 The parties listed in part 1 schedule 1 (Original Borrowers);

 

(3)                                 The parties listed in part 2 of schedule 1 (Original Guarantors);

 

(4)                                 Lloyds TSB Bank plc and Clydesdale Bank plc (trading as Yorkshire Bank) as mandated lead arrangers (whether acting individually or together the Arrangers);

 

(5)                                 The Financial Institutions listed in part 3 (The Original Lenders) of schedule 1 as lenders (Original Lenders);

 

(6)                                 Lloyds TSB Bank plc, Clydesdale Bank PLC (trading as Yorkshire Bank) and Bank of America N.A. as ancillary facilities providers (Original Ancillary Lenders); and

 

(7)                                 Lloyds TSB Bank plc as agent of the other Finance Parties (Agent).

 

It is agreed

 

1                                         Definitions and interpretation

 

1.1                               Definitions

 

In this Agreement:

 

ABL Facility means the facility provided pursuant to the facility agreement dated 26 April 2006 between the Company and Bank of America. N.A (in various capacities)

 

Acceptable Bank means:

 

(a)                                 a Lender (provided that such Lender is not a Defaulting Lender)

 

(b)                                 a bank or financial institution which has a rating for its short-term unsecured and non credit-enhanced debt obligations of A-1 or higher by Standard & Poor’s Rating Services, F(1) + or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors Service Limited or a comparable rating from an internationally recognised credit rating agency or

 

(c)                                  any other bank or financial institution approved by the Agent, or if the Agent is an Impaired Agent the Majority Lenders

 

Accession Deed means a document substantially in the form set out in schedule 7 (Form of Accession Deed)

 

Accounting Principles means the international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements or if required by the applicable law the generally acceptable accounting principles of the US

 

Accounting Reference Date has the meaning given to it in section 391 of the CA 2006

 

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Additional Borrower means a company which becomes an Additional Borrower in accordance with clause 30.2 (Additional Borrowers)

 

Additional Cost Rate has the meaning given to it in schedule 4 (Mandatory Cost Formula)

 

Additional Guarantor means a company which becomes an Additional Guarantor in accordance with clause 30.4 (Additional Guarantors)

 

Additional Obligor means an Additional Borrower or an Additional Guarantor

 

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

 

Agent’s Spot Rate of Exchange means the Agent’s spot rate of exchange for the purchase of the relevant currency with the Base Currency in the London foreign exchange market at or about 11.00 a.m. on a particular day

 

Amendment and Restatement Agreement means the amendment and restatement agreement relating to this Agreement made between the Parties and dated on or around the Restatement Date

 

Ancillary Commencement Date means, in relation to an Ancillary Facility, the date on which that Ancillary Facility is first made available, which date shall be a Business Day within the Availability Period

 

Ancillary Commitment means, in relation to an Ancillary Lender and an Ancillary Facility, the maximum Base Currency Amount which that Ancillary Lender has agreed to make available from time to time under an Ancillary Facility and which has been authorised as such under clause 7 (Ancillary Facilities), to the extent that amount is not cancelled or reduced under this Agreement or the Ancillary Documents relating to that Ancillary Facility

 

Ancillary Document means each document relating to or evidencing the terms of an Ancillary Facility

 

Ancillary Facility means any ancillary facility made available by an Ancillary Lender in accordance with clause 7 (Ancillary Facilities)

 

Ancillary Lender means any Lender which makes available an Ancillary Facility in accordance with clause 7 (Ancillary Facilities), initially being the Original Ancillary Lenders

 

Ancillary Outstandings means, at any time, in relation to an Ancillary Lender and an Ancillary Facility then in force the aggregate of the equivalents (as calculated by that Ancillary Lender) in the Base Currency of the following amounts outstanding under that Ancillary Facility:

 

(a)                                 the principal amount under each overdraft facility (net of any credit balances on any account of any Borrower of an Ancillary Facility with the Ancillary Lender making available that Ancillary Facility to the extent that the credit balances are freely available to be set off by that Ancillary Lender against liabilities owed to it by that Borrower under that Ancillary Facility)

 

(b)                                 the face amount of each letter of credit under that Ancillary Facility (less any amount prepaid or repaid in respect of such instrument and taking account of any decrease in the liability under such instrument as a consequence of a decrease in the underlying liability in respect of which such instrument was issued) and

 

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(c)                                  the amount fairly representing the aggregate exposure (excluding interest and similar charges) of that Ancillary Lender under each other type of accommodation provided under that Ancillary Facility,

 

in each case as determined by such Ancillary Lender, acting reasonably in accordance with its normal banking practice and in accordance with the relevant Ancillary Document

 

Annual Financial Statements means the financial statements for a Financial Year delivered pursuant to clause 24.1(a) (Financial statements)

 

Anti-Terrorism Law means any US state or federal law relating to terrorism or money laundering, including the Executive Order, the USA Patriot Act and the Money Laundering Control Act of 1986, Public Law 99-570

 

Articles means the articles of association of the Company

 

Assignment Agreement means an agreement substantially in the form set out in schedule 6 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee provided that  if that other form does not contain the undertaking set out in the form set out in schedule 6 (Form of Assignment Agreement) it shall not be a Creditor/Agent Accession Undertaking as defined in, and for the purposes of, the Intercreditor Deed

 

Auditors means one of PricewaterhouseCoopers LLP, Ernst & Young LLP, KPMG Audit PLC, Deloitte & Touche LLP, Grant Thornton LLP, Soren McAdam Christenson LLP or any other firm approved in advance by the Majority Lenders (such approval not to be unreasonably withheld or delayed)

 

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

 

Availability Period means the period from and including the date of this Agreement to and including the date falling 1 Month before the Termination Date

 

Available Commitment means a Lender’s Commitment, minus:

 

(a)                                 the Base Currency Amount of its participation in any outstanding Loans and, the Base Currency Amount of the aggregate of its Ancillary Commitments and

 

(b)                                 in relation to any duly requested proposed Loan, the Base Currency Amount of its participation in any other Loans that are due to be made on or before the proposed Utilisation Date and, the Base Currency Amount of its Ancillary Commitment in relation to any new Ancillary Facility that is due to be made available on or before the proposed Utilisation Date

 

For the purposes of calculating a Lender’s Available Commitment in relation to any proposed Loan, the following amounts shall not be deducted from a Lender’s Commitment:

 

(i)                                     that Lender’s participation in any Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date and

 

(ii)                                  that Lender’s Ancillary Commitments to the extent that they are due to be reduced or cancelled on or before the proposed Utilisation Date

 

Available Facility means the aggregate for the time being of each Lender’s Available Commitment in respect of the Facility

 

3

 

Base Case Model means the financial model dated 4 April 2011 in agreed form prepared by the Company including profit and loss account, balance sheet and cashflow projections relating to the Group

 

Base Currency means sterling

 

Base Currency Amount means:

 

(a)                                 in relation to a Loan, the amount specified in the Utilisation Request delivered by a Borrower (or the Company on its behalf) for that Loan (or, if the amount requested is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on the date which is 3 Business Days before the Utilisation Date or, if later, on the date the Agent receives the Utilisation Request in accordance with the terms of this Agreement)

 

(b)                                 in relation to an Ancillary Commitment, the amount specified as such in the notice delivered to the Agent by the Company pursuant to clause 7.2 (Availability) or

 

(c)                                  if the amount specified is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on the date which is 3 Business Days before the Ancillary Commencement Date for that Ancillary Facility or, if later, the date the Agent receives the notice of the Ancillary Commitment in accordance with the terms of this Agreement

 

as adjusted to reflect any repayment, prepayment or consolidation of a Loan, or (as the case may be) cancellation or reduction of an Ancillary Facility

 

Base Reference Bank Rate means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Base Reference Banks:

 

(a)                                 in relation to LIBOR, as the rate at which the relevant Base Reference Bank could borrow funds in the London interbank market or

 

(b)                                 in relation to EURIBOR, as the rate at which the relevant Base Reference Bank could borrow funds in the European 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

 

Base Reference Banks means, in relation to LIBOR, the principal London offices of Lloyds TSB Bank plc, Clydesdale Bank plc and Bank of America and, in relation to EURIBOR, the principal office of Lloyds TSB Bank plc, Clydesdale Bank plc and Bank of America or such other banks as may be appointed by the Agent in consultation with the Company

 

Bilateral Document means each document relating to or evidencing the terms of a Bilateral Facility

 

Bilateral Facility means a bilateral facility made available to an Obligor by a Bilateral Lender in accordance with clause 8 (Bilateral Facilities)

 

Bilateral Lender means each Lender

 

Bilateral Limit means in respect of each Bilateral Lender the amount set opposite its name under the heading Bilateral Limit in part 3 (The Original Lenders) of schedule 1 (or its

 

4

 

equivalent in any currency) each Bilateral Lender’s exposure and limit being calculated in accordance with the relevant Bilateral Lender’s usual policy

 

Borrower means an Original Borrower or an Additional Borrower unless it has ceased to be a Borrower in accordance with clause 30 (Changes to the Obligors)

 

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

 

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

 

Budget means:

 

(a)                                 in relation to the period beginning on 1 January 2011 and ending on 31 December 2011, the Base Case Model to be delivered by the Company to the Agent pursuant to clause 4.1 (Initial conditions precedent) and

 

(b)                                 in relation to any other period, the budget delivered by the Company to the Agent in respect of that period pursuant to, and in accordance with, clause 24.4 (Budget)

 

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

 

(a)                                 in relation to any date for payment or purchase of a currency other than euro, the principal financial centre of the country of that currency or

 

(b)                                 in relation to any date for payment or purchase of euro, any TARGET Day

 

CA2006 means the Companies Act 2006

 

Cash Equivalent Investments means at any time:

 

(a)                                 certificates of deposit maturing within 6 Months after the relevant date of calculation and issued by an Acceptable Bank

 

(b)                                 any investment in marketable debt obligations issued or guaranteed by the government of the United States of America or any member state of the European Economic Area, or by an instrumentality or agency of any of them having an equivalent credit rating, maturing within 3 Months after the relevant date of calculation and not convertible or exchangeable to any other security

 

(c)                                  commercial paper not convertible or exchangeable to any other security:

 

(i)                                     for which a recognised trading market exists

 

5

 

(ii)                                  issued by an issuer incorporated in the United States of America or any member State of the European Economic Area

 

(iii)                               which matures within 3 Months after the relevant date of calculation and

 

(iv)                              which has a credit rating of either A-1 or higher by Standard & Poor’s Rating Services, F-1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors Service Limited, or, if no rating is available in respect of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations, an equivalent rating

 

(d)                                 any investment in money market funds which

 

(i)                                     have a credit rating of either A-1 or higher by Standard & Poor’s Rating Services, F-1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors Service Limited

 

(ii)                                  invest substantially all their assets in securities of the types described in paragraphs (a) to (c) and

 

(iii)                               can be turned into cash on not more than 30 days’ notice or

 

(e)                                  any other debt security approved by the Majority Lenders

 

in each case, denominated in sterling or an Optional Currency and to which an Obligor is alone or together with other Obligors beneficially entitled at that time and which is not issued or guaranteed by any member of the Group or subject to any Security

 

Change of Control means any person or group of persons acting in concert gains direct or indirect control of the Company.  For the purposes of this definition:

 

(a)                                 control of the Company means:

 

(i)                                     the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

(A)                               cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the Company or

 

(B)                               appoint or remove all, or the majority, of the directors or other equivalent officers of the Company or

 

(C)                               give directions with respect to the operating and financial policies of the Company with which the directors or other equivalent officers of the Company are obliged to comply

 

(ii)                                  (the holding beneficially of more than 50% of the issued share capital of the Company (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital)

 

(b)                                 acting in concert means, a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the

 

6

 

acquisition, directly or indirectly, of shares in the Company by any of them, either directly or indirectly, to obtain or consolidate control of the Company

 

Closing Date means the date the Agent gives the notice to the Company pursuant to clause 4.1(c)

 

Commitment means:

 

(a)                                 in relation to an Original Lender, the amount in the Base Currency set opposite its name in part 3 (Original Lenders) of schedule 1 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 in the Base Currency of any Commitment transferred to it under this Agreement or assumed by it in accordance with clause 2.2 (Increase)

 

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

 

Compliance Certificate means a certificate substantially in the form set out in schedule 9 (Form of Compliance Certificate)

 

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

 

(a)                                 any member of the Group, or any of its advisers or

 

(b)                                 another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or 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 41 (Confidentiality) or

 

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

 

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

 

Confidentiality Undertaking means a confidentiality undertaking substantially in the recommended form of the LMA for the time being or in any other form agreed between the Company and the Agent

 

7

 

Contribution Notice means a contribution notice issued by the Pensions Regulator under section 38 or section 47 of the Pensions Act 2004

 

CTA means the Corporation Tax Act 2009

 

Czech Subsidiary means Magnesium Elektron Recycling CZ S.R.O.

 

Debenture means the debenture entered into by the Original Obligors pursuant to clause 4.1

 

Debt Purchase Transaction means, in relation to a person, a transaction where such person:

 

(a)                                 purchases by way of assignment or transfer

 

(b)                                 enters into any sub-participation in respect of or

 

(c)                                  enters into any other agreement or arrangement having an economic effect substantially similar to a sub-participation in respect of

 

any Commitment or amount outstanding under this Agreement

 

Default means an Event of Default or any event or circumstance specified in clause 27 (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 (other than Lender which is a Sponsor Affiliate):

 

(a)                                 which has failed to make its participation in a Loan available or has notified the Agent that it will not make its participation in a Loan available, in each case, by the Utilisation Date of that Loan in accordance with clause 5.4 (Lenders’ participation) or

 

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

 

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

 

and payment is made within 5 Business Days of its due date or

 

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

 

Defined Benefit Scheme means each of the following:

 

(a)                                 Luxfer Group Pension Plan

 

(b)                                 Luxfer Group Supplementary Pension Plan

 

(c)                                  BA Holdings inc. Defined Benefit Pension Plan

 

(d)                                 Pension Plan for Hourly Employees of Luxfer Inc

 

8

 

(e)                                  BA Holdings Inc. Executive Supplemental Retirement Plan

 

(f)                                   IPC Supplementary Pension scheme and

 

(g)                                  IDR Termination Indemnities

 

Designated Gross Amount has the meaning given to that term in clause 7.2 (Availability)

 

Designated Net Amount has the meaning given to that term in clause 7.2 (Availability)

 

Designated Person means a person:

 

(a)                                 listed on the annex to the Executive Order

 

(b)                                 owned or controlled by, or acting for or on behalf of, any person listed on the annex to the Executive Order

 

(c)                                  listed on the “Specially Designated Nationals and Blocked Persons” list maintained by OFAC of the United States Department of the Treasury, as updated or amended from time to time

 

(d)                                 whose property has been blocked, or is subject to seizure, forfeiture or confiscation, under any applicable Anti-Terrorism Law or

 

(e)                                  that commits, threatens or conspires to commit or support “terrorism” as defined in the Executive Order

 

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

 

Dormant Subsidiary means a member of the Group which does not trade (for itself or as agent for any person) and does not own, legally or beneficially, assets (including indebtedness owed to it) which in aggregate have a value of £20,000 or more or its equivalent in other currencies

 

Employee Plan means, at any time, an “employee pension benefit plan” as defined in section 3(2) of ERISA and subject to Title IV of ERISA (other than a Multiemployer Plan) then

 

9

 

or at any time during the previous six years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or ERISA Affiliate

 

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

 

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

 

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

 

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

 

Environmental Claim means any claim, proceeding, formal notice or investigation by any person in respect of any Environmental Law

 

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

 

(a)                                 the pollution or protection of the Environment

 

(b)                                 the conditions of the workplace or

 

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

 

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 any Real Property owned or used by any member of the Group

 

ERISA means the US Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder

 

ERISA Affiliate means each person (as defined in section 3(9) of ERISA) that is a member of a controlled group of, or under common control with, any Obligor, within the meaning of section 414 of the Internal Revenue Code

 

ERISA Event means any of the following events:

 

(a)                                 any reportable event, as defined in section 4043(c) of ERISA, with respect to an Employee Plan as to which the PBGC has not by regulation waived the requirement of section 4043(a) of ERISA that it be notified within thirty days of the occurrence of that event. However, a failure to meet the minimum funding standard of section 412 of the Internal Revenue Code or section 302 of ERISA shall be a reportable event for the purposes of this paragraph (a) regardless of the issuance of any waiver under said sections

 

(b)                                 the requirements of subsection (1) of section 4043(b) of ERISA (without regard to subsection (2) of that section) are met with respect to a contributing sponsor, as defined in section 4001(a)(13) of ERISA, of an Employee Plan and an event described in paragraph (9), (10), (11), (12) or (13) of section 4043(c) of ERISA is reasonably expected to occur with respect to that Employee Plan within the following 30 days

 

10

 

(c)                                  the filing under section 4041(c) of ERISA of a notice of intent to terminate any Employee Plan

 

(d)                                 the termination of any Employee Plan under section 4041(c) of ERISA

 

(e)                                  the institution of proceedings under section 4042 of ERISA by the PBGC for the termination of, or the appointment of a trustee to administer, any Employee Plan

 

(f)                                   the failure to make a required contribution to any Employee Plan that would result in the imposition of an encumbrance pursuant to section 412 of the Internal Revenue Code or section 302 of ERISA or

 

(g)                                  engagement with an Employee Plan in a non-exempt prohibited transaction within the meaning of section 4975 of the Internal Revenue Code or section 406 of ERISA other than as a result of entering into this Agreement

 

ESOP means the Luxfer Group Employee Share Ownership Plan established by a deed of trust dated 3 November 1997

 

EURIBOR means, in relation to any Loan in euro:

 

(a)                                 the applicable Screen Rate or

 

(b)                                 if no Screen Rate is available for the Interest Period of that Loan, the Base Reference Bank Rate

 

as of the Specified Time on the Quotation Day in euro and a period comparable to the Interest Period of that Loan

 

Event of Default means any event or circumstance specified as such in clause 27 (Events of Default)

 

Excluded Deposit Account means each of the following deposit accounts:

 

(a)                                 any deposit account specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of the Company or any of its Subsidiary’s salaried employees

 

(b)                                 any deposit account credited at any time with an amount not exceeding $100,000 (or its equivalent in any currency) individually and, when aggregated with the amounts in all other such accounts, $500,000 (or its equivalent in any currency)

 

(c)                                  any deposit account, the balance of which consists solely of funds set aside in connection with tax, trust or similar accounts that are or are or will be promptly applied in the ordinary course of business toward valid applicable obligations of such Obligor

 

(d)                                 any “lock-box” deposit account the balance of which is swept on a daily basis into other deposit accounts of the Company or any of its Subsidiaries that are deposit accounts as set forth under the preceding limbs (a) - (c) (inclusive)

 

Executive Order means Executive Order No. 13224 of September 23, 2001- Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism

 

11

 

Existing Notes means £71,850,977 floating rate notes due 2012 issued by the Company

 

Existing Note Documents means:

 

(a)                                 the indenture dated 6 February 2007 made between the Company and The Bank of New York; and

 

(b)                                 each note issued pursuant to the indenture referred to in limb (a) above

 

Facility means the revolving credit facility made available under this Agreement as described in clause 2.1(a) (The Facility)

 

Facility Office means:

 

(a)                                 in respect of a Lender, the office or offices notified by that Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than 7 days’ written notice) as the office or offices through which it will perform its obligations under this Agreement or

 

(b)                                 in respect of any other Finance Party, the office in the jurisdiction in which it is resident for tax purposes

 

FATCA has the meaning given to that term in clause 17.1 (Tax gross up and indemnities)

 

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 January 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 2015 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:

 

(i)                                     the Original Lenders and the Company or

 

(ii)                                  the Agent and the Company

 

12

 

setting out any of the fees referred to in clause 2.2(e) (Increase) or clause 16 (Fees) and

 

(b)                              the Amendment Fee Letter (as defined in the Amendment and Restatement Agreement)

 

Finance Document means this Agreement, any Accession Deed, the Amendment and Restatement Agreement, any Ancillary Document, any Bilateral Document, any Compliance Certificate, any Fee Letter, any Hedging Agreement, the Intercreditor Deed, any Resignation Letter, any Utilisation Request and any other document designated as a Finance Document by the Agent and the Company

 

provided that where the term Finance Document is used in, and construed for the purposes of, this Agreement or the Intercreditor Deed, a Hedging Agreement shall be a Finance Document only for the purposes of:

 

(a)                                 the definition of Material Adverse Effect

 

(b)                                 paragraph (a) of the definition of Permitted Transaction

 

(c)                                  the definition of Transaction Document

 

(d)                                 clause 1.2(a)(iv) (Interpretation)

 

(e)                                  clause 22 (Guarantee and indemnity) and

 

(f)                                   clause 27 (Events of Default) (other than clause 27.15 (Repudiation and rescission of agreements) and clause 27.20 (Acceleration))

 

provided that where the term Finance Document is used in, and construed for the purposes of, this Agreement or the Intercreditor Deed, a Bilateral Document shall be a Finance Document only for the purposes of clause 22 (Guarantee and indemnity)

 

Finance Lease means any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease

 

Finance Party means the Agent, the Arrangers, a Lender, a Hedge Counterparty, any Ancillary Lender or any Bilateral Lender

 

provided that where the term Finance Party is used in, and construed for the purposes of, this Agreement or the Intercreditor Deed, a Hedge Counterparty shall be a Finance Party only for the purposes of:

 

(a)                                 clause 1.2(a)(i) (Interpretation)

 

(b)                                 paragraph (c) of the definition of Material Adverse Effect

 

(c)                                  clause 22 (Guarantee and indemnity) and

 

(d)                                 clause 32 (Conduct of business by the Finance Parties)

 

provided that where the term Finance Party is used in, and construed for the purposes of, this Agreement or the Intercreditor Deed, a Bilateral Lender shall be a Finance Party only for the purposes of clause 22 (Guarantee and indemnity)

 

13

 

Financial Indebtedness means, without double counting, any indebtedness for or in respect of:

 

(a)                                 monies borrowed and debit balances at banks or other financial institutions

 

(b)                                 acceptance under any acceptance credit or bill discounting facility (or dematerialised equivalent)

 

(c)                                  any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument

 

(d)                                 any Finance Leases

 

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

 

(f)                                   any Treasury Transaction (and, when calculating the value of that Treasury 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 Treasury Transaction, that amount) shall be taken into account)

 

(g)                                  any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of (i) an underlying liability of an entity which is not a member of the Group which liability would fall within one of the other paragraphs of this definition

 

(h)                                 any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 180 days after the date of supply

 

(i)                                     any amount raised under any other transaction (including any forward sale or purchase sale and sale back or sale and leaseback agreement) having the commercial or economic effect of a borrowing or otherwise classified as borrowings under the Accounting Principles

 

(j)                                    any amount raised by the issue of redeemable shares which are redeemable (other than at the option of the issuer) before the Termination Date or are otherwise classified as borrowings under the Accounting Principles

 

(k)                                 the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a) to (j)

 

Financial Quarter has the meaning given to that term in clause 25 (Financial covenants)

 

Financial Support Direction means a financial support direction issued by the Pensions Regulator under section 43 of the Pensions Act 2004

 

Financial Year has the meaning given to that term in clause 25 (Financial covenants)

 

Fraudulent Transfer Law means any applicable US Bankruptcy Law (including, without limitation, section 548 of Title 11 of the US Bankruptcy Law) or any US state fraudulent transfer or conveyance statute or any relevant case law

 

14

 

French Subsidiary means Luxfer Gas Cylinders S.A.S

 

Funds Flow Statement means a funds flow statement in agreed form

 

Group means the Company and each of its Subsidiaries for the time being

 

Group Structure Chart means the group structure chart to be delivered by the Company to the Agent pursuant to clause 4.1 (Initial conditions precedent)

 

Guarantor means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with clause 30 (Changes to the Obligors)

 

Hedge Counterparty means any person which has become a Party as a Hedge Counterparty in accordance with clause 28.8 (Accession of Hedge Counterparties) which has become, a party to the Intercreditor Deed as a Hedge Counterparty in accordance with the provisions of the Intercreditor Deed

 

Hedging Agreement means any master agreement, confirmation, schedule or other agreement in agreed form entered into or to be entered into by the relevant Borrower and a Hedge Counterparty for the purpose of hedging the types of liabilities and/or risks which, at the time that the master agreement, confirmation, schedule or other agreement (as the case may be) is entered into, the Hedging Letter requires to be hedged

 

Hedging Letter means the letter dated on or before the date of this Agreement and made between the Agent and the Company describing the hedging arrangements to be entered into in respect of the interest rate liabilities of the Borrowers

 

Holding Company means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary

 

Impaired Agent means the 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 Agent otherwise rescinds or repudiates as Finance Document

 

(c)                               (if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of Defaulting Lender and, in the case of the events or circumstances referred to in paragraph (a), none of the exceptions apply to that paragraph or

 

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

 

(ii)                              payment is made within 5 Business Days of its due date or

 

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

 

15

 

Increase Confirmation means a confirmation substantially in the form set out in schedule 11 (Form of Increase Confirmation)

 

Increase Lender has the meaning given to that term in clause 2.2 (Increase)

 

Internal Revenue Code means the US Internal Revenue Code of 1986, as amended from time to time, and any and all regulations and rulings issued thereunder

 

Information Memorandum means the document dated 7 January 2011 in the form approved by the Company concerning the Group which, at the request of the Company and on its behalf in relation to this transaction prior to the date of this Agreement in connection with the Facility

 

Information Package means the Base Case Model and the Information Memorandum

 

Insolvency Event means, in relation to a Finance Party:

 

(a)                              any receiver, administrative receiver, administrator, liquidator, compulsory manager or other similar officer is appointed in respect of that Finance Party or all or substantially all of its assets

 

(b)                              that Finance Party is subject to any event which has an analogous effect to any of the events specified in paragraph (a) under the applicable laws of any jurisdiction or

 

(c)                               that Finance Party suspends making payments on all or substantially all of its debts or publicly announces an intention to do so

 

Intellectual Property means:

 

(a)                                 any patents, trade marks, service marks, designs, business names, copyrights, database rights, design rights, domain names, moral rights, inventions, confidential information, know-how and other intellectual property rights and interests (which may now or in the future subsist), whether registered or unregistered and

 

(b)                                 the benefit of all applications and rights to use such assets of each member of the Group (which may now or in the future subsist)

 

Intercreditor Deed means the intercreditor deed dated the same date as this Deed and as amended and restated on or around the Restatement Date and made between, among others, the Company, the Debtors (as defined in the Intercreditor Agreement), Lloyds TSB Bank plc as senior agent, the Lenders (as Senior Lenders), the Arrangers (as Senior Arrangers), the Ancillary Lenders (as Senior Lenders), the Hedge Counterparties (each as defined in the Intercreditor Deed), each Bilateral Lender, the Noteholders and the Intra-Group Lenders (as defined in the Intercreditor Deed)

 

Interest Period means, in relation to a Loan, each period determined in accordance with clause 14 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with clause 13.3 (Default interest)

 

ITA means the Income Tax Act 2007

 

Joint Venture means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity

 

16

 

Legal Reservations means:

 

(a)                                 the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors

 

(b)                                 the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of UK stamp duty may be void and defences of set-off or counterclaim

 

(c)                                  the possibility that the courts may recharacterise any security purporting to be a fixed charge as a floating charge (or vice versa) and

 

(d)                                 similar principles, rights and defences under the laws of any Relevant Jurisdiction

 

Lender means:

 

(a)                                 any Original Lender and

 

(b)                                 any bank, financial institution, trust, fund or other entity which has become a Party as a Lender in accordance with clause 2.2 (Increase) or clause 28 (Changes to the Lenders)

 

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

 

LIBOR means, in relation to any Loan:

 

(a)                                 the applicable Screen Rate or

 

(b)                                 (if no Screen Rate is available for the currency or Interest Period of that Loan) the Base Reference Bank Rate

 

as of the Specified Time on the Quotation Day for the currency of that Loan and a period comparable to the Interest Period of that Loan and if any such rate is below zero, LIBOR will be deemed to be zero

 

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

 

Major Breach means any breach of:

 

(a)                                 clause 26.7 (Change of business)

 

(b)                                 clause 26.8 (Acquisitions)

 

(c)                                  clause 26.11 (Pari passu ranking)

 

(d)                                 clause 26.12 (Negative pledge)

 

(e)                                  clause 26.13 (Disposals)

 

17

 

(f)                                   clause 26.15 (Loans or credit)

 

(g)                                  clause 26.16 (No Guarantees or indemnities)

 

(h)                                 clause 26.17 (Dividends and share redemption)

 

(i)                                     clause 26.18 (Notes)

 

(j)                                    clause 26.19 (Financial Indebtedness) and

 

(k)                                 clause 26.21 (Insurance)

 

Major Default means any of the following Events of Default:

 

(a)                                 clause 27.1 (Non-payment)

 

(b)                                 clause 27.2 (Financial covenants and other obligations)

 

(c)                                  clause 27.3 (Other obligations) but only insofar as it relates to a Major Breach

 

(d)                                 clause 27.4 (Misrepresentation) but only insofar as it relates to a Major Representation

 

(e)                                  clause 27.6 (Insolvency) and clause 27.7 (Insolvency proceedings) and

 

(f)                                   clause 27.9 (Unlawfulness and invalidity) and clause 27.15 (Repudiation and rescission of agreements) and

 

(g)                                  clause 27.19 (ERISA)

 

Majority Lenders means a Lender or Lenders whose Commitments aggregate more than 662/3 per cent of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3 per cent of the Total Commitments immediately prior to that reduction)

 

Major Representation means each of the representations set out in clause 23.2 (Status) to clause 23.6(a) (Validity and admissibility in evidence) inclusive, clause 23.25 (Obligors), clause 23.31 (US Regulations) and clause 23.32 (Sanctions)

 

Mandatory Cost means the percentage rate per annum calculated by the Agent in accordance with schedule 4 (Mandatory Cost Formula)

 

Margin means:

 

(a)                                 subject to clause 15.1 (Margin adjustment), in relation to each Loan, 2.5% per annum

 

(b)                                 in relation to any Unpaid Sum relating or referable to the Facility, the rate per annum specified for the Facility and

 

(c)                                  in relation to any other Unpaid Sum, the highest rate specified above

 

Margin Stock shall have the meaning ascribed to such term under Regulation U, Regulation T or Regulation X of the Board of Governors of the Federal Reserve System

 

Material Adverse Effect means in the reasonable opinion of the Majority Lenders a material adverse effect on:

 

18

 

(a)                                 the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole

 

(b)                                 the ability of an Obligor to perform its payment obligations under the Finance Documents (taking into account the financial resources available to that Obligor from other members of the Group) or

 

(c)                                  the rights or remedies of any Finance Party under any of the Finance Documents

 

Material Company means, at any time:

 

(a)                                 an Obligor

 

(b)                                 a wholly-owned member of the Group that holds shares in an Obligor or

 

(c)                                  a Subsidiary of the Company which has earnings before interest, tax and amortisation calculated on the same basis as EBITA representing 5% or more of EBITA, or has gross assets, (excluding intra-group items) representing 5%, or more of the gross assets of the Group, calculated on a consolidated basis

 

Compliance with the conditions set out in paragraph (c) shall be determined by reference to the most recent Compliance Certificate supplied by the Company 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.  However, if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the financial statements shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary (that adjustment being certified by the Group’s Auditors as representing an accurate reflection of the revised EBITA and gross assets of the Group)

 

A report by the Auditors of the Company that a Subsidiary is or is not a Material Company shall, in the absence of manifest error, be conclusive and  binding on all Parties

 

Material Provision means each of clause 24.1 (Financial statements) to 24.3 (Requirements as to financial statements), clause 26.6 (Merger) to 26.8 (Acquisitions)  (inclusive), clause 26.11 (Pari passu ranking), clause 26.12 (Negative pledge), clause 26.13 (Disposals), clauses 26.15 (Loans or credit) to 26.19 (Financial Indebtedness) (inclusive), clause 26.21 (Insurance) and clause 26.35 (ERISA)

 

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)) 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

 

19

 

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

 

Monthly Financial Statements means the financial statements delivered pursuant to clause 24.1(b) (Financial statements)

 

Multiemployer Plan means, at any time, a multiemployer plan (as defined in section 4001(a)(3) of ERISA) then or at any time during the previous five years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or an ERISA Affiliate

 

New Lender has the meaning given to it in clause 28.1 (Assignments and transfers by the Lenders)

 

Notes  means  the notes issued pursuant to the Note Documents

 

Note Documents  means:

 

(a)                                 the note purchase agreement for up to US $65,000,000 entered into by BA Holdings Inc on or around the date of this Agreement

 

(b)                                 the guarantee entered into by each Obligor on or around the Closing Date in the form set out in the note purchase agreement referred to in limb (a) above and

 

(c)                                  each note issued pursuant to the note purchase agreement referred to in limb (a) above

 

(d)                                 the hedging letter issued pursuant to the note purchase agreement referred to in limb (a) above

 

(e)                                  a letter dated 21 March 2011 between the Company and Pricoa Capital Group and

 

(f)                                   any other Note Document as defined in the note purchase agreement referred to in limb (a) above

 

Notifiable Debt Purchase Transaction has the meaning given to that term in clause 29.2 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates)

 

Obligor means a Borrower or a Guarantor

 

OFAC means the Office of Foreign Asset Control of the US Department of the Treasury

 

Optional Currency means a currency (other than the Base Currency) which complies with the conditions set out in clause 4.3 (Conditions relating to Optional Currencies)

 

Original Financial Statements means:

 

(a)                                 in relation to the Company (i) in respect of any representation to be given on the date of this Agreement, its consolidated audited financial statements for its financial year ended 31 December 2009 and its consolidated unaudited financial statements for its financial year ended 31 December 2010 and (ii) in any other respect its consolidated audited financial statements for its financial year ended 31 December 2010

 

(b)                                 in relation to the Company the consolidated unaudited monthly management accounts for the period from 1 January 2011 to 31 March 2011

 

20

 

(c)                                  in relation to each other member of the Group (other than BA Holdings Inc, Luxfer Australia Pty Limited, Hart Metals Inc, MEL Chemicals Inc, Magnesium Elektron North America Inc, Niagra Metallurgical Products Limited and Reade Manufacturing Company), its audited financial statements for the financial year ended 31 December 2009 and

 

(d)                                 in relation to any other Obligor, its audited financial statements delivered to the Agent as required by clause 30 (Changes to the Obligors)

 

Original Obligor means an Original Borrower or an Original Guarantor

 

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

 

Party means a party for the time being to this Agreement

 

PBGC means the Pension Benefit Guaranty Corporation of the US established pursuant to section 4002 of ERISA or any entity succeeding to all or any of its functions under ERISA

 

Pensions Regulator means the body corporate called the Pensions Regulator established under Part I of the Pensions Act 2004

 

Permitted Acquisition means:

 

(a)                                 an acquisition pursuant to a Permitted Share Issue

 

(b)                                 the incorporation of a company which on incorporation becomes a member of the Group, but only if that company is incorporated in England and Wales or the US with limited liability

 

(c)                                  an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member of the Group in circumstances constituting a Permitted Disposal

 

(d)                                 an acquisition (not being an acquisition by the Company), of (A) all of the issued share capital of a limited liability company or (B) (if the acquisition is made by a limited liability company) a business or undertaking carried on as a going concern, but only if:

 

(i)                                 no Default is continuing on the closing date for the acquisition or would occur as a result of the acquisition;

 

(ii)                              the acquired company, business or undertaking:

 

(A)                                is engaged in a business substantially the same as that carried on by the Group and

 

(B)                                is incorporated or established, and carries on its principal business in a jurisdiction in which an existing member of the Group operates and not in any jurisdiction that is on a restricted list for a Finance Party

 

(iii)                           Leverage (as shown in the latest Compliance Certificate) does not exceed 2.5:1

 

21

 

(iv)                          the Company has delivered to the Lender not later than 5 Business Days prior to it (or the relevant member of the Group) legally committing to make such acquisition, a certificate signed by two directors of the Company:

 

(A)                                giving notice to the Agent of the proposed acquisition and

 

(B)                                to which is attached forecasts (which have been prepared on the basis of recent historical information and reasonable assumptions, and which assume that the acquisition has occurred), demonstrating that the Company will remain in compliance with its obligations under clause 25 (Financial covenants) for a period of not less than 12 Months from the closing date for the acquisition and

 

(v)                             the consideration (including associated costs and expenses) for the acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in the acquired company (or any such business) at the date of acquisition (when aggregated with the consideration (including associated costs and expenses) for any other Permitted Acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in any such acquired companies or businesses at the time of acquisition (the Total Purchase Price)) does not exceed in aggregate £15,000,000 (or its equivalent) or

 

(e)                                  an acquisition permitted by the Agent (acting on the instructions of the Majority Lenders (such consent not to be unreasonably withheld or delayed)) in writing

 

Permitted Cash Balance means £10,000,000 (or its equivalent in any currency)

 

Permitted Disposal means any sale, lease, licence, transfer or other disposal which, except in the case of paragraph (b), is on arm’s length terms:

 

(a)                                 of trading stock or cash made by any member of the Group in the ordinary course of trading of the disposing entity

 

(b)                                 of any asset by a member of the Group (Disposing Company) to another member of the Group (Acquiring Company), but if:

 

(i)                                     the Disposing Company is an Obligor, the Acquiring Company must also be an Obligor and

 

(ii)                                  the Disposing Company is a Guarantor, the Acquiring Company must be a Guarantor guaranteeing at all times an amount no less than that guaranteed by the Disposing Company

 

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

 

(d)                                 of assets to a Permitted Joint Venture

 

(e)                                  of obsolete or redundant vehicles, plant and equipment for cash

 

(f)                                   of Cash Equivalent Investments for cash or in immediate exchange for other Cash Equivalent Investments

 

22

 

(g)                                  constituted by a licence of intellectual property rights permitted by clause 26.24 (Intellectual Property)

 

(h)                                 arising as a result of any Permitted Security

 

(i)                                     of cash by way of a Permitted Loan

 

(j)                                    of cash in order to complete a Permitted Acquisition

 

(k)                                 of assets for cash where the higher of the market value or the net consideration receivable in respect of such asset when aggregated with the higher of the market value or the net consideration receivable for any other sale, lease, licence, transfer or other disposal of an asset not allowed under the preceding paragraphs) does not exceed £8,000,000 (or its equivalent) in aggregate and does not exceed £2,000,000 (or its equivalent) in any Financial Year or

 

(l)                                     that is a Permitted Transaction

 

Permitted Distribution means:

 

(a)                                 the payment of a dividend to any member of the Group by any of that member of the Group’s Subsidiaries

 

(b)                                 the payment of a dividend by the Company provided:

 

(i)                                     no Default has occurred and is continuing or would result from such payment

 

(ii)                                  Leverage (as shown in latest Compliance Certificate) does not exceed 2.5:1 and

 

(iii)                               at the time the proposed dividend is made the forecasted Leverage for the next 12 month (assuming payment of any proposed dividends during that period) does not exceed 2.5:1

 

(c)                               the redemption of up to £50,000 B preference shares at par value (plus any accrued dividend) issued by the Company to Brian Purves and Ian Mckinnon or

 

(d)                              the payment of any other dividend agreed between the Company and the Agent (acting on the instructions of the Majority Lenders)

 

Permitted Financial Indebtedness means Financial Indebtedness:

 

(a)                                 arising under any of the Finance Documents, the Note Documents, in each case as in force on the date of this Agreement and amended from time to time in compliance with this Agreement and the Intercreditor Deed

 

(b)                                 arising under a Permitted Loan, a Permitted Guarantee or as permitted by clause 26.28 (Treasury transactions)

 

(c)                                  arising under a foreign exchange transaction for spot or forward delivery entered into in connection with protection against fluctuation in currency rates where that foreign exchange exposure arises in the ordinary course of trade or in respect of Loans made in Optional Currencies, but not a foreign exchange transaction for investment or speculative purposes

 

23

 

(d)                                 under finance or capital leases of vehicles, plant, equipment or computers, provided that the aggregate capital value of all such items so leased under outstanding leases by members of the Group does not exceed £10,000,000 (or its equivalent in other currencies) at any time

 

(e)                                  of a company that becomes a member of the Group as a result of a Permitted Acquisition provided that the Financial Indebtedness is repaid in full within 45 days of that company becoming a member of the Group

 

(f)                                   arising under any Bilateral Facility

 

(g)                                  not permitted by the preceding paragraphs and the outstanding amount does not exceed £400,000 (or its equivalent) in aggregate for the Group at any time

 

(h)                                 performance bonds issued in the ordinary course of trading in respect of non-financial obligations

 

(i)                                     any Financial Indebtedness (existing as at the date of this Agreement) pursuant to the ABL Facility and/or the Existing Note Documents so long as the Financial Indebtedness is irrevocably discharged no later than the Closing Date

 

(j)                                    permitted by the Agent (acting on the instructions of the Majority Lenders) in writing and

 

(k)                                 such other Financial Indebtedness not permitted by the preceding paragraphs, provided that the outstanding principal amount of all Financial Indebtedness of the Group (including the Financial Indebtedness permitted pursuant to paragraphs (a) to (j) above) does not exceed £145,000,000 (or its equivalent) in aggregate for the Group at any time

 

Permitted Guarantee means:

 

(a)                                 the endorsement of negotiable instruments in the ordinary course of trade

 

(b)                                 any guarantee to a property landlord of which a member of the Group is a tenant

 

(c)                                  any performance or similar bond guaranteeing performance by a member of the Group under any contract entered into in the ordinary course of trade

 

(d)                                 any guarantee or indemnity arising under any Transaction Document

 

(e)                                  any indemnity given by a member of the Group for its liabilities in the ordinary course of trade

 

(f)                                   a guarantee in respect of Financial Indebtedness permitted under limb (h) of the definition of Permitted Financial Indebtedness

 

(g)                                  a guarantee of Financial Indebtedness as part of a Permitted Joint Venture

 

(h)                                 a guarantee in respect of obligations of an Obligor or a guarantee by a non-Obligor in respect of the obligations of another member of the Group made in the ordinary course of business

 

(i)                                     any guarantee given in respect of the netting or set-off arrangements permitted pursuant to paragraph (c) of the definition of Permitted Security

 

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(j)                                    any guarantee or indemnity given by a member of the Group in respect of any obligations of an employee or officer of a member of the Group, which obligations shall not exceed £100,000 (or its equivalent) in aggregate for all such obligations supported by such guarantee or indemnity pursuant to this clause (j) outstanding at any time or

 

(k)                                 any guarantee (existing as at the date of this Agreement) given in respect of the Financial Indebtedness in relation to the ABL Facility or the Existing Note Documents so long as such guarantees are irrevocably released, removed or discharged no later than the Closing Date

 

Permitted Joint Venture means any investment by any member of the Group:

 

(a)                                 where the joint venture interest is held through an entity incorporated or formed with limited liability and

 

(i)                                 the joint venture entity is incorporated or established, and carries on its principal business in a jurisdiction in which an existing member of the Group operates and not in any jurisdiction that is on a restricted list for a Finance Party

 

(ii)                              as at the date of the joint venture investment by the relevant member of the Group:

 

(A)                                   Leverage (as shown in the latest Compliance Certificate) does not exceed 2.5:1 and

 

(B)                                   the Company has delivered to the Lender not later than 5 Business Days prior to the relevant member of the Group legally committing to make such joint venture investment, a certificate signed by two directors of the Company:

 

1)                                     giving notice to the Agent of the proposed joint venture investment and

 

2)                                     to which is attached forecasts (which have been prepared on the basis of recent historical information and reasonable assumptions, and which assume that the joint venture investment has occurred), demonstrating that the Company will remain in compliance with its obligations under clause 25 (Financial covenants) for a period of not less than 12 Months from the date of the joint venture investment

 

(iii)                               the joint venture investment is made on arm’s length terms

 

(iv)                              that entity carries on or owns the same, a similar, complementary or related business to that carried on by the Group and

 

(v)                                 the aggregate (without double counting) of:

 

(A)                               all outstanding amounts lent, advances, contributed to or for equity in, or otherwise invested in, all such entities by members of the Group and

 

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(B)                               the market value (at the date of transfer or contribution) of all assets transferred or contributed to all such entities by members of the Group to the extent exceeding the value of the consideration for such transfers or contributions and

 

(C)                               all outstanding Financial Indebtedness incurred (whether by way of guarantee or otherwise) in relation to all such entities by members of the Group

 

shall not after the date of this Agreement, when taken together with any contingent liability of the Permitted Joint Venture, exceed £15,000,000 (or its equivalent) or

 

(b)                                 permitted by the Agent acting on the instruction of the Majority Lenders (such consent not to be unreasonably withheld or delayed) in writing

 

Permitted Loan means:

 

(a)                                 any trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of its trading activities

 

(b)                                 Financial Indebtedness which is referred to in the definition of, or otherwise constitutes, Permitted Financial Indebtedness

 

(c)                                  any loan made to a Permitted Joint Venture

 

(d)                                 any loan or advance made to employees of any member of the Group which loans and advances shall not exceed £100,000 in aggregate for all loans to employees (or its equivalent) outstanding at any time

 

(e)                                  any loan, advance or other financial facility in an aggregate amount not to exceed £500,000 in any calendar year made available to the trustee of the ESOP, the trustee of any other employee share ownership plan or similar trust or to an employee whether for the purpose of acquiring ordinary, preference or deferred shares in the Company or any member of the Group, provided that such loan, advance or other financial facility may not exceed £5,000,000 at any one time outstanding

 

(f)                                   a loan made by an Obligor to another Obligor or made by a member of the Group which is not an Obligor to another member of the Group

 

(g)                                  any loan made by an Obligor to a member of the Group which is not an Obligor so long as:

 

(i)                                     the aggregate amount of the Financial Indebtedness under any such loans does not exceed £10,000,000 (or its equivalent) at any time or

 

(ii)                                  such loan is funded by the issue of shares pursuant to limb (a) of the definition of Permitted Share Issue or

 

(h)                                 any loan (other than a loan that would fall within one of the limbs set out above) so long as the aggregate amount of Financial Indebtedness under any such loan does not exceed £500,000 (or its equivalent) at any time

 

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Permitted Security means:

 

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

 

(b)                                 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 of members of the Group but only so long as (i) such arrangement does not permit credit balances of Obligors to be netted or set off against debit balances of members of the Group which are not Obligors and (ii) such arrangement does not give rise to other Security over the assets of Obligors in support of liabilities of members of the Group which are not Obligors

 

(c)                                  any payment or close out netting or set-off arrangement pursuant to any Treasury Transaction or foreign exchange transaction entered into by a member of the Group which constitutes Permitted Financial Indebtedness, excluding any Security or Quasi-Security under a credit support arrangement

 

(d)                                 any Security or Quasi-Security 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

 

(e)                                  any Quasi-Security arising as a result of a disposal which is a Permitted Disposal

 

(f)                                   any Security or Quasi-Security arising as a consequence of any finance or capital lease permitted pursuant to paragraph (d) of the definition of “Permitted Financial Indebtedness”

 

(g)                                  not used or

 

(h)                                 any Security or Quasi-Security (existing as at the date of this Agreement) over the assets of the Group pursuant to the ABL Facility so long as the Security or Quasi-Security is irrevocably released, removed or discharged no later than the Closing Date

 

Permitted Share Issue means an issue of:

 

(a)                                 ordinary shares by the Company, paid for in full in cash upon issue and which by their terms are not redeemable and where such issue does not lead to a Change of Control of the Company

 

(b)                                 any shares issued in connection with the ESOP where such issue does not lead to a Change of Control and

 

(c)                                  shares by a member of the Group (other than the Company) which is a Subsidiary to any Holding Company

 

Permitted Transaction means:

 

(a)                                 any disposal required, Financial Indebtedness incurred, guarantee, indemnity or Security or Quasi-Security given, or other transaction arising, under the Finance Documents

 

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(b)                                 the solvent liquidation or reorganisation of any member of the Group which is not an Obligor so long as any payments or assets distributed as a result of such liquidation or reorganisation are distributed to other members of the Group or

 

(c)                                  transactions (other than (i) any sale, lease, license, transfer or other disposal and (ii) the granting or creation of Security or the incurring or permitting to subsist of Financial Indebtedness) conducted in the ordinary course of trading on arm’s length terms

 

Qualifying Lender has the meaning given to that term in clause 17 (Tax gross up and indemnities)

 

Quarter Date means the last day of a Financial Quarter

 

Quarterly Financial Statements means the financial statements for each Financial Quarter delivered pursuant to clause 24.1 (Financial statements)

 

Quasi-Security has the meaning given to that term in clause 26.12 (Negative pledge)

 

Quotation Day means, in relation to any period for which an interest rate is to be determined:

 

(a)                                 if the currency is sterling, the first day of that period

 

(b)                                 if the currency is euro, 2 TARGET Days before the first day of that period or

 

(c)                                  for any other currency, 2 Business Days before the first day of that period

 

unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than 1 day, the Quotation Day will be the last of those days)

 

Real Property means:

 

(a)                                 any freehold, leasehold, commonhold or immovable property and

 

(b)                                 any buildings, fixtures, fittings, fixed plant or machinery from time to time situated on or forming part of that freehold, leasehold, commonhold or immovable property

 

Receiving Agent means The Bank of New York

 

Regulation T, Regulation U or Regulation X means Regulation T, U or, as the case may be, X of the Board of Governors of the Federal Reserve System of the US (or any successor) as from time to time in effect and all official rulings and interpretations thereunder or thereof

 

Related Fund in relation to a fund (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 adviser is an Affiliate of the investment manager or investment adviser of the first fund

 

Relevant Interbank Market means:

 

(a)                                 in relation to euro, the European interbank market and

 

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(b)                                 in relation to any other currency, the London interbank market

 

Relevant Jurisdiction means, in relation to an Obligor:

 

(a)                                 its jurisdiction of incorporation and

 

(b)                                 any jurisdiction where it conducts its business

 

Relevant Period has the meaning given to that term in clause 25 (Financial covenants)

 

Repeating Representations means each of the representations set out in clause 23.2 (Status) to clause 23.7 (Governing law and enforcement) (inclusive), clause 23.11 (No default), clause 23.12(g) (No misleading information), clause 23.13 (f), (g) and (h) (Original Financial Statements), clause 23.20 (Good title to assets) to clause 23.21 (Legal and beneficial ownership) (inclusive), clause 23.27 (Centre of main interests and establishments) and clause 23.32 (Sanctions)

 

Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian

 

Resignation Letter means a letter substantially in the form set out in schedule 8 (Form of Resignation Letter)

 

Restatement Date means                                              2012

 

Rollover Loan means one or more Loans:

 

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

 

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

 

(c)                                  in the same currency as the maturing Loan (unless it arose as a result of the operation of clause 6.2 (Unavailability of a currency)) and

 

(d)                                 made or to be made to the same Borrower for the purpose of refinancing that maturing Loan

 

Screen Rate means:

 

(a)                                 in relation to LIBOR, the British Bankers’ Association Interest Settlement Rate for the relevant currency and period and

 

(b)                                 in relation to EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union for the Relevant Period

 

displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Company and the Lenders

 

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

 

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Share Option Documents means each deed of agreement granting options pursuant to parts A and B of the ESOP

 

Specified Time means a time determined in accordance with schedule 10 (Timetables)

 

Sponsor Affiliate means Sponsor Management Company (Xco), each of its Affiliates, any trust of which XCo or any of its Affiliates is a trustee, any partnership of which XCo or any of its Affiliates is a partner and any trust, fund or other entity which is managed by, or is under the control of, XCo or any of its Affiliates provided that any such trust, fund or other entity which has been established for at least 6 months solely for the purpose of making, purchasing or investing in loans or debt securities and which is managed or controlled independently from all other trusts, funds or other entities managed or controlled by XCo or any of its Affiliates which have been established for the primary or main purpose of investing in the share capital of companies shall not constitute a Sponsor Affiliate

 

Subsidiary means a subsidiary undertaking within the meaning of section 1162 of the CA2006

 

TARGET2 means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform and which was launched on 19 November 2007

 

TARGET Day means any day on which TARGET2 is open for the settlement of payments in euro

 

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

 

Termination Date means 6 May 2015

 

Third Parties Act means the Contracts (Rights of Third Parties) Act 1999

 

Third Party Disposal means the disposal of an Obligor to a person which is not a member of the Group where that disposal is permitted under clause 26.13 (Disposals) or made with the approval of the Majority Lenders (and the Company has confirmed this is the case)

 

Total Commitments means the aggregate of the Commitments being £70,000,000 at the Restatement Date

 

Trade Instruments means any performance bonds, advance payment bonds or documentary letters of credit issued in respect of the obligations of any member of the Group arising in the ordinary course of trading of that member of the Group

 

Transaction Costs means all fees, costs and expenses incurred by the Obligors in connection with the Transaction Documents as set out in the Funds Flow Statement

 

Transaction Documents means the Finance Documents, the Note Documents, the Articles and any other document designated as a Transaction Document by the Agent and the Company

 

Transfer Certificate means a certificate substantially in the form set out in schedule 5 (Form of Transfer Certificate) or any other form agreed between the Agent and the Company

 

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

 

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

 

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

 

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

 

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

 

USA Patriot Act means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 of the United States

 

US or United States means the United States of America

 

US Bankruptcy Law means the United States Bankruptcy Code of 1978 or any other United States federal or state bankruptcy, insolvency or similar law

 

US Guarantor means a Guarantor incorporated or formed under the laws of, or of any state (including the District of Columbia) of, the US

 

US Obligor means an Obligor incorporated or formed under the laws of, or of any state (including the District of Columbia) of, the US

 

Utilisation means a Loan

 

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 relevant form set out in part 1 (Utilisation Request) of schedule 3

 

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

 

Withdrawal Request means a notice in substantially the form set out in part 3 (Withdrawal Request) of schedule 3

 

1.2                               Interpretation

 

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

 

(i)                                     the Agent, the Arrangers, any Finance Party, any Lender, any Obligor, any Party, any Ancillary Lender, any Hedge Counterparty, any Bilateral Lender  or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees and, in the case of the Agent any person for the time being appointed as Agent (as the case may be) in accordance with the Finance Documents;

 

(ii)                                  a document in agreed form is a document which is previously agreed in writing by or on behalf of the Agent and the Company or, if not so agreed, is in the form specified by the Agent;

 

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(iii)                               assets includes present and future properties, revenues and rights of every description (including any right to receive such revenues);

 

(iv)                              a Finance Document or a Transaction Document or any other agreement or instrument is a reference to that Finance Document or Transaction Document or other agreement or instrument as amended, novated, supplemented or restated (however fundamentally) or (in the case of an Ancillary Document or a Bilateral Document) replaced;

 

(v)                                 guarantee means (other than in clause 22 (Guarantee and indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

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

 

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

 

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

 

(ix)                              a provision of law is a reference to a provision, of any treaty, legislation, regulation, decree, order or by-law and any secondary legislation enacted under a power given by that provision, as amended, applied or re-enacted or replaced (whether with or without modification) whether before or after the date of this Agreement;

 

(x)                                 a time of day is a reference to London time;

 

(xi)                              sterling and £ shall be construed as a reference to the lawful currency of the United Kingdom;

 

(xii)                           euro and € shall be construed as a reference to the single currency of Participating Member States;

 

(xiii)                        US Dollar shall be construed as a reference to the lawful currency of the United States; and

 

(b)                                 Clause and schedule headings are for ease of reference only.

 

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(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)                                 Any word importing the singular shall include the plural and vice versa.

 

(e)                                  A Borrower providing cash cover for an Ancillary Facility means a Borrower paying an amount in the currency of the Ancillary Facility into an interest-bearing account in the name of such Borrower and the following conditions being met:

 

(i)                                     the account is with the Ancillary Lender; and

 

(ii)                                  until no amount is or may be outstanding under Ancillary Facility, withdrawals from the account may only be made to pay a Finance Party amounts due and payable to it under this Agreement in respect of the Ancillary Facility.

 

(f)                                   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, in both cases, to the satisfaction of the Agent acting on the instructions of the Majority Lenders.

 

(g)                                  A Borrower repaying or prepaying the Ancillary Outstandings means:

 

(i)                                     that Borrower providing cash cover for the Ancillary Outstandings;

 

(ii)                                  the maximum amount payable under Ancillary Facility being reduced or cancelled in accordance with its terms; or

 

(iii)                               the Ancillary Lender being satisfied that it has no further liability under the Ancillary Facility,

 

and the amount by which the Ancillary Outstandings are, repaid or prepaid under clauses 1.2(g)(i) and 1.2(g)(ii) is the amount of the relevant cash cover or reduction.

 

(h)                                 An amount borrowed includes any amount utilised under an Ancillary Facility.

 

(i)                                     Any certificate provided by a director of an Obligor pursuant to the terms of a Finance Document shall be given without incurring any personal liability.

 

(j)                                    A reference to “the date of this Agreement” is a reference to 13 May 2011.

 

(k)                                 A reference to an amount in a currency other than the Base Currency shall be converted to the Base Currency at the Agent’s Spot Rate of Exchange unless another conversation rate is expressly stated.

 

1.3                               Third party rights

 

(a)                                 Unless expressly provided to the contrary in this Agreement a person (other than a Bilateral Lender or a Hedge Counterparty) who is not a Party has no right under the Third Parties Act to enforce or enjoy the benefit of any term of this Agreement.

 

(b)                                 Unless expressly provided to the contrary in any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement or any other Finance Document entered into under or in connection with it.

 

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2                                         The Facility

 

2.1                               The Facility

 

(a)                                 Subject to the terms of this Agreement, the Lenders make available a multicurrency revolving credit facility the Base Currency Amount of which is equal to the Total Commitments.

 

(b)                                 Not used.

 

(c)                                  The Facility will be available to all the Borrowers.

 

(d)                                 Subject to the terms of this Agreement and the Ancillary Documents, an Ancillary Lender may make available an Ancillary Facility to any of the Borrowers in place of all or part of its Commitment.

 

(e)                                  Subject to the terms of this Agreement and the Bilateral Documents, a Bilateral Lender may make available a Bilateral Facility to any of the Borrowers.

 

2.2                               Increase

 

(a)                                 The Company may by giving prior notice to the Agent after the effective date of a cancellation of:

 

(i)                                     the Available Commitments of a Defaulting Lender in accordance with clause 10.7 (Right of cancellation in relation to a Defaulting Lender); or

 

(ii)                                  the Commitments of a Lender in accordance with clause  10.1 (Illegality),

 

request that the Total Commitments be increased (and the Total Commitments shall be so increased) in an aggregate amount in the Base Currency of up to the amount of the Available Commitments or Commitments so cancelled as follows:

 

(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 Company (each of which shall not be a Sponsor Affiliate or a member of the Group and which is further acceptable to the Agent (acting reasonably)) and each of which confirms its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

 

(iv)                              each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors 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;

 

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

 

34

 

(vii)                           any increase in the Total Commitments shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in clause 2.2(b) below are satisfied.

 

(b)                                 An increase in the Total Commitments will only be effective on:

 

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

 

(ii)                                  in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase:

 

(A)                               the Increase Lender entering into the documentation required for it to accede as a party to the Intercreditor Deed; and

 

(B)                               the performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Agent shall promptly notify to the Company and the Increase Lender.

 

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

 

(d)                                 The Company shall, on the date upon which the increase takes effect, promptly on demand pay the Agent the amount of all costs and expenses (including legal fees subject to any cap agreed in advance between the Company and the Agent) reasonably incurred.

 

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

 

(f)                                   Clause 28.4 (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;

 

(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.

 

35

 

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

 

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

 

2.4                               Obligors’ agent

 

(a)                                 Each Obligor (other than the Company) by its execution of this Agreement or an Accession Deed irrevocably appoints the Company to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

 

(i)                                     the Company on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions (including Utilisation Requests), to execute on its behalf any Accession Deed to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect the Obligor, without further reference to or the consent of that Obligor; and

 

(ii)                                  each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Company,

 

and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions (including, without limitation, any Utilisation Requests) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.

 

(b)                                 Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors’ agent or given to the Obligors’ agent under any Finance Document on behalf of another Obligor or in connection with any Finance Document (whether or not known to any other Obligor and whether occurring before or after such other Obligor became an Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it.  In the event of any conflict between any notices or other communications of the Obligors’ agent and any other Obligor, those of the Obligors’ agent shall prevail.

 

3                                         Purpose

 

3.1                               Purpose

 

(a)                                 Not used.

 

(b)                                 Each Borrower shall apply all amounts borrowed by it under the Facility and any utilisation of any Ancillary Facility towards the general corporate and working capital purposes of the Obligors and refinancing any utilisations under the Obligor’s existing asset based lending facilities (but not towards in the case of any utilisation of any Ancillary Facility, towards repayment or prepayment of any Loan).

 

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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 Company shall provide the Agent all the documents and other evidence in part 1 (Conditions precedent to signing the Agreement) of schedule 2 in form and substance satisfactory to the Agent on or before the date of this Agreement.

 

(b)                                 The Lenders will only be obliged to comply with clause 5.4 (Lenders’ participation) in relation to any Loan if on or before the Utilisation Date for that Utilisation, the Agent has received all of the documents and other evidence listed in part 2 (Conditions precedent to be satisfied before initial Utilisation) of schedule 2 in form and substance satisfactory to the Agent.

 

(c)                                  The Agent shall, in each case, notify the Company and the Lenders promptly upon being so satisfied.

 

4.2                               Further conditions precedent

 

Subject to clause 4.1 the Lenders will only be obliged to comply with clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

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

 

(b)                                 in relation to any Loan on the Closing Date, all the representations and warranties in clause 23 (Representations) or, in relation to any other Loan, the Repeating Representations, to be made by each Obligor are true.

 

4.3                               Conditions relating to Optional Currencies

 

(a)                                 A currency will constitute an Optional Currency in relation to a Loan if:

 

(i)                                     it is readily available in the amount and for the period required and freely convertible into the Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation Date for that Loan; and

 

(ii)                                  it is Euro or US Dollar or has been approved by the Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Agent of the relevant Utilisation Request for that Loan.

 

(b)                                 If the Agent has received a written request from the Company for a currency to be approved under clause 4.3(a)(ii), the Agent will confirm to the Company by the Specified Time:

 

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

 

(ii)                                  if approval has been granted, the minimum amount for any subsequent Loan in that currency.

 

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4.4                               Maximum number of Loans

 

(a)                                 A Borrower (or the Company on its behalf) may not deliver a Utilisation Request if as a result of the proposed Loan more than 10 Loans would be outstanding.

 

(b)                                 Not used.

 

(c)                                  Any Loan made by a single Lender under clause 6.2 (Unavailability of a currency)  shall not be taken into account in this clause 4.4.

 

4.5                               Not used.

 

5                                         Utilisation

 

5.1                               Delivery of a Utilisation Request

 

A Borrower (or the Company on its behalf) may request a Loan by delivery to the 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)                                     it identifies the Borrower and the Facility to be utilised;

 

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

 

(iii)                               the currency and amount of the Loan comply with clause 5.3; and

 

(iv)                              the proposed Interest Period complies with clause 14 (Interest Periods).

 

(b)                                 Multiple Loans may be requested in a Utilisation Request where the proposed Utilisation Date is the Closing Date.  Only 1 Loan may be requested in each subsequent Utilisation Request.

 

5.3                               Currency and amount

 

(a)                                 The currency specified in a Utilisation Request must be the Base Currency or an Optional Currency.

 

(b)                                 The amount of the proposed Loan must be:

 

(i)                                     not used;

 

(ii)                                  in respect of the Facility:

 

(A)                               if the currency selected is the Base Currency, a minimum of £1,500,000 (and a multiple of £500,000) or, if less, the Available Facility; or

 

(B)                               if the currency selected is Euro, a minimum of Euro 2,000,000 (and a multiple of Euro 500,000) or, if less, the Available Facility; or

 

(C)                               if the currency selected is US Dollar, a minimum of $2,000,000 (and a multiple of $500,000) or, if less, the Available Facility; or

 

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(D)                               if the currency selected is an Optional Currency other than Euro or US Dollar, the minimum amount specified by the Agent pursuant to clause 4.3(b)(ii) (Conditions relating to Optional Currencies) or, if less, the Available Facility.

 

5.4                               Lenders’ participation

 

(a)                                 If the conditions set out in this Agreement have been met and subject to clause 9.2 (Repayment of Loans), 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 that Loan.

 

(c)                                  The Agent shall determine the Base Currency Amount of each Loan which is to be made in an Optional Currency and notify each Lender of the amount, currency and the Base Currency Amount of each Loan and the amount of its participation in that Loan and, if different, the amount of that participation to be made available in cash, by the Specified Time.

 

5.5                               Limitations on Loans

 

(a)                                 Not used.

 

(b)                                 The maximum aggregate amount of the Ancillary Commitments of all the Lenders shall not at any time exceed:

 

(i)                                     in the period from the Closing Date to (but excluding) the date falling two Months after the Closing Date £18,000,000 (or its equivalent in any currency); and

 

(ii)                                  at any time on or after the date falling two Months after the Closing Date £17,000,000 (or its equivalent in any currency).

 

(c)                                  The maximum aggregate amount of the Ancillary Commitments of all the Lenders in respect of overdraft facilities and bilateral loan facilities shall not at any time exceed £10,000,000 (or its equivalent in any currency).

 

(d)                                 The maximum aggregate amount of the Ancillary Commitments of all the Lenders in respect of letters of credit facility shall not at any time exceed:

 

(i)                                     in the period from the Closing Date to (but excluding) the date falling two Months after the Closing Date £8,000,000 (or its equivalent in any currency); and

 

(ii)                                  at any time on or after the date falling two Months after the Closing Date £7,000,000 (or its equivalent in any currency).

 

5.6                               Cancellation of Commitment

 

(a)                                 Not used.

 

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

 

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6                                         Optional currencies

 

6.1                               Selection of currency

 

A Borrower (or the Company on its behalf) shall select the currency of a Loan in a Utilisation Request.

 

6.2                               Unavailability of a currency

 

If before the Specified Time on any Quotation Day a Lender notifies the Agent that:

 

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

 

(b)                                 compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it,

 

the Agent will give notice to the Company to that effect by the Specified Time on that day.  In this event, any Lender that gives notice pursuant to this clause 6.2 will be required to participate in the Loan in the Base Currency (in an amount equal to that Lender’s proportion of the Base Currency Amount, or in respect of a Rollover Loan in an amount equal to that Lender’s proportion of the Base Currency Amount of the Rollover Loan that is due to be made) and its participation will be treated as a separate Loan denominated in the Base Currency during that Interest Period.

 

6.3                               Agent’s calculations

 

Each Lender’s participation in a Loan will be determined in accordance with clause 5.4 (Limitations on Loans).

 

7                                         Ancillary Facilities

 

7.1                               Type of Facility

 

An Ancillary Facility may be by way of:

 

(a)                                 an overdraft facility;

 

(b)                                 a letter of credit facility; or

 

(c)                                  a bilateral loan facility.

 

7.2                               Availability

 

(a)                                 If the Company and a Lender agree and except as otherwise provided in this Agreement, that Lender may provide an Ancillary Facility on a bilateral basis in place of all or part of that Lender’s unutilised Commitment (which shall (except for the purposes of determining the Majority Lenders and of clause 40.4 (Deemed consent)) be reduced by the amount of the Ancillary Commitment under that Ancillary Facility).

 

(b)                                 An Ancillary Facility shall not be made available unless, not later than 14 days prior to the Ancillary Commencement Date for an Ancillary Facility, the Agent has received from the Company:

 

(i)                                     a notice in writing of the establishment of an Ancillary Facility and specifying:

 

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(A)                               the proposed Borrower(s) which may use the Ancillary Facility;

 

(B)                               the proposed Ancillary Commencement Date and expiry date of the Ancillary Facility;

 

(C)                               the proposed type of Ancillary Facility to be provided;

 

(D)                               the proposed Ancillary Lender;

 

(E)                                the proposed Ancillary Commitment, the maximum amount of the Ancillary Facility and, if the Ancillary Facility is an overdraft facility comprising more than one account, its maximum gross amount (that amount being Designated Gross Amount) and its maximum net amount (that amount being Designated Net Amount); and

 

(F)                                 the proposed currency of the Ancillary Facility (if not denominated in the Base Currency); and

 

(ii)                                  any other information which the Agent may reasonably request in connection with the Ancillary Facility.

 

(c)                                  The Agent shall promptly notify the Ancillary Lender and the other Lenders of the establishment of an Ancillary Facility.

 

(d)

 

(i)                                     No amendment or waiver of a term of any Ancillary Facility shall require the consent of any Finance Party other than the relevant Ancillary Lender unless such amendment or waiver itself relates to or gives rise to a matter which would require an amendment of or under this Agreement (including, for the avoidance of doubt, under this clause).  In such a case, the provisions of this Agreement with regard to amendments and waivers will apply.

 

(ii)                                  The Company shall notify the Agent and provide details of any material amendment or waiver of a term of any Ancillary Facility which does not require the consent of any other Finance Party, no later than 14 days prior to the date of such amendment or waiver.

 

(e)                                  Subject to compliance with clause 7.2(b):

 

(i)                                     the Lender concerned will become an Ancillary Lender; and

 

(ii)                                  the Ancillary Facility will be available,

 

with effect from the date agreed by the Company and the Ancillary Lender.

 

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7.3                               Terms of Ancillary Facilities

 

(a)                                 Except as provided below, the terms of any Ancillary Facility will be those agreed by the Ancillary Lender and the Company.

 

(b)                                 However, those terms:

 

(i)                                     must be based upon normal commercial rates and terms at that time (except as varied by this Agreement);

 

(ii)                                  may allow only Borrowers to use the Ancillary Facility;

 

(iii)                               may not allow the Ancillary Outstandings to exceed the Ancillary Commitment;

 

(iv)                              may not allow the Ancillary Commitment of a Lender to exceed the Available Commitment of that Lender; and

 

(v)                                 must require that the Ancillary Commitment is reduced to nil, and that all Ancillary Outstandings are repaid not later than the Termination Date (or such earlier date as the Commitment of the relevant Ancillary Lender is reduced to zero).

 

(c)                                  If there is any inconsistency between any term of an Ancillary Facility and any term of this Agreement, this Agreement shall prevail except for (i) clause 37.3 (Day count convention) which shall not prevail for the purposes of calculating fees, interest or commission relating to an Ancillary Facility and (ii) an Ancillary Facility comprising more than one account where the terms of the Ancillary Documents shall prevail to the extent required to permit the netting of balances on those accounts and (iii) where the relevant term of this Agreement would be contrary to, or inconsistent with, the law governing the relevant Ancillary Document, in which case that term of this Agreement shall not prevail.

 

7.4                               Repayment of Ancillary Facility

 

(a)                                 An Ancillary Facility shall cease to be available on the Termination Date or such earlier date on which its expiry date occurs or on which it is cancelled in accordance with the terms of this Agreement.

 

(b)                                 If an Ancillary Facility expires in accordance with its terms the Ancillary Commitment of the Ancillary Lender shall be reduced to zero (and its Commitment shall be increased accordingly).

 

(c)                                  No Ancillary Lender may demand repayment or prepayment of any amounts under its Ancillary Facility (except where the Ancillary Facility is provided on a net limit basis to the extent required to bring any gross outstandings down to the net limit) unless:

 

(i)                                     the Total Commitments have been cancelled in full, or all outstanding Loans under the Facility have become due and payable in accordance with the terms of this Agreement, or the Agent has declared all outstanding Loans immediately due and payable in accordance with the terms of this Agreement, or the expiry date of the Ancillary Facility occurs;

 

42

 

(ii)                                  it becomes unlawful in any applicable jurisdiction for the Ancillary Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in its Ancillary Facility; or

 

(iii)                               the Ancillary Outstandings (if any) under that Ancillary Facility can be refinanced by a Loan and the Ancillary Lender gives sufficient notice to enable a Loan of the Facility to be made to refinance those Ancillary Outstandings in accordance with the terms of this Agreement.

 

Other than demanding repayment or prepayment, as the case may be, no Ancillary Lender may exercise any other right, remedy and/or power in connection with any amount or liability owed to it by any Borrower under any Ancillary Facility.

 

(d)                                 For the purposes of determining whether or not the Ancillary Outstandings under an Ancillary Facility mentioned in clause 7.4(c)(iii) can be refinanced by a Loan:

 

(i)                                     the Commitment of that Lender will be increased by the amount of its Ancillary Commitment; and

 

(ii)                                  the Loan may (so long as clause 7.4(c)(i) does not apply) be made irrespective of whether a Default is outstanding or any other applicable condition precedent is not satisfied (but only to the extent that the proceeds are applied in refinancing those Ancillary Outstandings) and irrespective of whether clause 4.4 (Maximum number of Loans) or clause 5.2(b) (Completion of a Utilisation Request) applies.

 

(e)                                  On the making of a Loan to refinance Ancillary Outstandings:

 

(i)                                     each Lender will participate in that Loan in an amount (as determined by the Agent) which will result as nearly as possible in the aggregate amount of its participation in the Loans then outstanding bearing the same proportion to the aggregate amount of the Loans then outstanding as its Commitment bears to the Total Commitments; and

 

(ii)                                  the relevant Ancillary Facility shall be cancelled.

 

(f)                                   In relation to an Ancillary Facility which comprises an overdraft facility where a Designated Net Amount has been established, the Ancillary Lender providing that Ancillary Facility shall only be obliged to take into account for the purposes of calculating compliance with the Designated Net Amount those credit balances which it is permitted to take into account by the then current law and regulations in relation to its reporting of exposures to the Financial Services Authority as netted for capital adequacy purposes.

 

7.5                               Ancillary Outstandings

 

Each Borrower and each Ancillary Lender agrees with and for the benefit of each Lender that:

 

(a)                                 the Ancillary Outstandings under any Ancillary Facility provided by that Ancillary Lender shall not exceed the Ancillary Commitment applicable to that Ancillary Facility and where the Ancillary Facility is an overdraft facility comprising more than one account, Ancillary Outstandings under that Ancillary Facility shall not exceed the Designated Net Amount in respect of that Ancillary Facility; and

 

43

 

(b)                                 where all or part of the Ancillary Facility is an overdraft facility comprising more than one account, the Ancillary Outstandings (calculated on the basis that the words in brackets in paragraph (a) of the definition of that term were deleted) shall not exceed the Designated Gross Amount applicable to that Ancillary Facility.

 

7.6                               Adjustment for Ancillary Facilities upon acceleration

 

In this clause 7.6:

 

Outstandings means, in relation to a Lender, the aggregate of the equivalent in the Base Currency of (i) its participation in each Utilisation then outstanding (together with the aggregate amount of all accrued interest, fees and commission owed to it as a Lender under the Facility) and (ii) if the Lender is also an Ancillary Lender, the Ancillary Outstandings in respect of Ancillary Facilities provided by that Ancillary Lender (together with the aggregate amount of all accrued interest, fees and commission owed to it as an Ancillary Lender in respect of the Ancillary Facility).

 

Total Outstandings means the aggregate of all Outstandings.

 

(a)                                 If a notice is served under clause 27.20 (Acceleration) (other than a notice declaring Utilisations to be due on demand), each Lender and each Ancillary Lender shall promptly adjust by corresponding transfers (to the extent necessary) their claims in respect of amounts outstanding to them under the Facility and each Ancillary Facility to ensure that after such transfers the Outstandings of each Lender bear the same proportion to the Total Outstandings as such Lender’s Commitment bears to the Total Commitments, each as at the date the notice is served under clause 27.20 (Acceleration).

 

(b)                                 If an amount outstanding under an Ancillary Facility is a contingent liability and that contingent liability becomes an actual liability or is reduced to zero after the original adjustment is made under paragraph (a) above, then each Lender and Ancillary Lender will make a further adjustment by corresponding transfers (to the extent necessary), to put themselves in the position they would have been in had the original adjustment been determined by reference to the actual liability or, as the case may be, zero liability and not the contingent liability.

 

(c)                                  Prior to the application of the provisions of paragraph (a) of this clause 7.6, an Ancillary Lender that has provided an overdraft comprising more than one account under an Ancillary Facility shall set-off any liabilities owing to it under such overdraft facility against credit balances on any account comprised in such overdraft facility.

 

(d)                                 All calculations to be made pursuant to this clause 7.6 shall be made by the Agent based upon information provided to it by the Lenders and Ancillary Lenders.

 

7.7                               Information

 

Each Borrower and each Ancillary Lender shall, promptly upon request by the Agent, supply the Agent with any information relating to the operation of an Ancillary Facility (including the Ancillary Outstandings) as the Agent may reasonably request from time to time.  Each Borrower consents to all such information being released to the Agent and the other Finance Parties.

 

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7.8                               Commitment amounts

 

Notwithstanding any other term of this Agreement, each Lender shall ensure that at all times its Commitment is not less than its Ancillary Commitment.

 

8                                         Bilateral Facilities

 

8.1                               Type of Facility

 

A Bilateral Facility may be by way of:

 

(a)                                 a foreign exchange facility; or

 

(b)                                 any other facility or accommodation required in connection with the business of the Group (other than any facility or accommodation for the purpose of or having the effect of a term loan or a revolving credit facility) and which is agreed by the Company with a Bilateral Lender.

 

8.2                               Availability

 

(a)                                 If a Borrower and a Bilateral Lender agree and except as otherwise provided in this Agreement, that Bilateral Lender may provide a Bilateral Facility to that Borrower.

 

(b)                                 The aggregate amount of all Bilateral Facilities shall at no time exceed the relevant Bilateral Limit.

 

(c)                                  The Company shall promptly notify the Agent of the establishment of a Bilateral Facility.

 

(d)                                 No amendment or waiver of a term of a Bilateral Facility shall require the consent of any Finance Party other than the relevant Bilateral Lender unless such amendment or waiver itself relates to or gives rise to a matter which would require an amendment of or under this Agreement (including, for the avoidance of doubt, under this clause).  In such a case, the provisions of this Agreement with regard to amendments and waivers will apply.

 

(e)                                  The Company shall notify the Agent and provide details of any material amendment or waiver of a term of any Bilateral Facility which does not require the consent of any Finance Party, no later than 14 days prior to the date of such amendment or waiver.

 

8.3                               Information

 

Each Borrower shall, promptly upon request by the Agent, supply the Agent with any information relating to the terms or operation of a Bilateral Facility as the Agent may reasonably request from time to time.  Each Borrower consents to all such information being released to the Agent and the other Finance Parties.

 

9                                         Repayment

 

9.1                               Not used.

 

9.2                               Repayment of Loans

 

(a)                                 Each Borrower which has drawn a Loan shall repay that Loan on the last day of its Interest Period.

 

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(b)                                 Without prejudice to each Borrower’s obligation under clause 9.2(a) above, if one or more Loans are to be made available to a Borrower:

 

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

 

(ii)                                  in the same currency as the maturing Loan (unless it arose as a result of the operation of clause  6.2 (Unavailability of a currency)); and

 

(iii)                               in whole or in part for the purpose of refinancing the maturing Loan;

 

the aggregate amount of the new Loans shall 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 relevant Borrower will only be required to pay an amount in cash 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; and

 

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

 

1)                                     the relevant Borrower will not be required to make any payment in cash; and

 

2)                                     each Lender will be required to make its participation in the new Loans available in cash only to the extent that its participation (if any) in the new Loans exceeds that Lender’s participation (if any) in the maturing Loan and the remainder of that Lender’s participation in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the maturing Loan.

 

9.3                               Not used.

 

10                                  Illegality, voluntary prepayment and cancellation

 

10.1                        Illegality

 

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

 

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

 

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

 

46

 

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

 

10.2                        Mandatory cancellation

 

All Available Commitments under the Facility shall automatically be cancelled at the end of the Availability Period in respect of the Facility.

 

10.3                        Voluntary cancellation

 

(a)                                 The Company may, if it gives the Agent not less than 3 Business Days’ (or such shorter period as the Majority Lenders may agree) prior written notice, cancel the whole or any part (being a minimum amount of $2,000,000, £1,500,000 or €2,000,000 (or its equivalent in any currency) and a multiple of £250,000 (or its equivalent in any currency)) of an Available Facility. Any cancellation under this clause 10.3 shall reduce the Commitments of the Lenders rateably under the Facility.

 

(b)                                 Not used.

 

10.4                        Not used.

 

10.5                        Voluntary prepayment of Loans

 

A Borrower to which a Loan has been made may, if it or the Company gives the Agent not less than 3 Business Days’ (or such shorter period as the Majority Lenders may agree) prior written notice, prepay the whole or any part of a Loan (but if in part, being a minimum amount of £2,000,000 (or its equivalent in any currency) and a multiple of £250,000 (or its equivalent in any currency)).

 

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

 

(a)                                 If:

 

(i)                                     any sum payable to any Lender by an Obligor is required to be increased under clause 17.2(c) (Tax gross-up); or

 

(ii)                                  any Lender claims indemnification from an Obligor under clause 17.3 (Tax indemnity) or clause 18.1 (Increased costs),

 

the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loans.

 

(b)                                 On receipt of a notice referred to in clause 10.6(a) in relation to a Lender, the Commitment of that Lender shall immediately be reduced to zero.

 

(c)                                  On the last day of each Interest Period which ends after the Company has given notice under clause 10.6(a) in relation to a Lender (or, if earlier, the date specified by the Company in that notice), each Borrower to which a Loan is outstanding shall repay that Lender’s participation in that Loan together with all interest and other amounts accrued under the Finance Documents.

 

47

 

10.7                        Right  of cancellation in relation to a Defaulting Lender

 

(a)                                 If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 10 Business Days’ notice of cancellation of each Available Commitment of that Lender.

 

(b)                                 On the notice referred to in clause 10.7(a) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.

 

(c)                                  The Agent shall as soon as practicable after receipt of a notice referred to in clause 10.7(a) above, notify all the Lenders.

 

10.8                        Cash cover

 

To the extent that, under the terms of this Agreement, an Obligor is obliged to provide cash cover in respect of the Ancillary Facilities, it shall only be entitled to withdraw that cash cover if:

 

(a)                                 the Company delivers to the Agent a duly completed Withdrawal Request not later than 11am 14 days before the proposed date of withdrawal;

 

(b)                                 no Default is continuing; and

 

(c)                                  the amount so withdrawn is applied in immediate prepayment of the Ancillary Facilities.

 

11                                  Mandatory prepayment

 

11.1                        Exit:

 

Upon the occurrence of:

 

(a)                                 a Change of Control; or

 

(b)                                 the sale of all or substantially all of the assets of the Group whether in a single transaction or a series of related transactions,

 

the Facility will be cancelled and all outstanding Loans and Ancillary Outstandings, together with accrued interest, and all other amounts accrued under the Finance Documents, shall become immediately due and payable.

 

11.2                        Disposal and Insurance

 

(a)                                 For the purposes of this clause 11.2

 

Disposal means a sale, lease or licence (other than an occupational rack rent lease or licence), transfer, loan or other disposal by a person of any asset, undertaking or business (whether by a voluntary or involuntary single transaction or series of transactions)

 

Disposal Proceeds means the consideration receivable by any member of the Group (including any amount receivable in repayment of intercompany debt) for any Disposal made by any member of the Group except for Excluded Disposal Proceeds

 

48

 

Excluded Disposal Proceeds means the proceeds of a Disposal from a Permitted Disposal

 

Excluded Insurance Proceeds means any proceeds of an insurance claim which the Company notifies the Agent are, or are to be, applied:

 

(i)                                     to meet a third party claim

 

(ii)                                  to cover operating losses in respect of which the relevant insurance claim was made

 

(iii)                               to the replacement, reinstatement and/or repair of the assets or otherwise in amelioration of the loss in respect of which the relevant insurance claim was made

 

(iv)                              by an Obligor to purchase assets useful to the business of the Obligors,

 

in each case as soon as reasonably practicable after receipt or

 

(iv)                              which do not exceed £10,000,000 (or its equivalent) when aggregated together with the proceeds of all other insurance claims (excluding those referred to in (i), (ii) and (iii) of this definition) during the term of this Agreement

 

Insurance Proceeds means the proceeds of any insurance claim under any insurance maintained by any member of the Group except for Excluded Insurance Proceeds and after deducting any reasonable expenses in relation to that claim which are incurred by any member of the Group to persons who are not members of the Group

 

(b)                                 Subject to the terms of the Intercreditor Deed, the Company shall ensure (unless the Agent agrees in writing otherwise) that the Borrowers cancel Commitments and prepay Loans in the following amounts at the times and in the order of application contemplated by clause 11.3:

 

(i)                                     the amount of Disposal Proceeds; and

 

(ii)                                  the amount of Insurance Proceeds.

 

11.3                        Application

 

(a)                                 A prepayment and/or cancellation made under clause 11.2 shall be applied in the following order:

 

(i)                                     first in cancellation of Available Commitments under the Facility (and the Available Commitment of the Lenders under the Facility will be cancelled rateably);

 

(ii)                                  second, in prepayment of Loans and cancellation of Commitments; and

 

(iii)                               third, in repayment and cancellation of the Ancillary Outstandings and cancellation of Ancillary Commitments.

 

(b)                                 A prepayment relating to the amounts of Disposal Proceeds or Insurance Proceeds made under clause 11.2 shall be made promptly upon receipt of those proceeds.

 

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12                                  Restrictions

 

12.1                        Notices of Cancellation or Prepayment

 

Any notice of cancellation, prepayment, authorisation or other election given by any Party under clause 10 (Illegality, voluntary prepayment and cancellation) or clause 11 (Mandatory prepayment) shall (subject to the terms of those clauses) 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.

 

12.2                        Interest and other amounts

 

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.

 

12.3                        Not used.

 

12.4                        Reborrowing of the Facility

 

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.

 

12.5                        Prepayment in accordance with Agreement

 

Subject to clause 2.2 (Increase), no Borrower shall 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.

 

12.6                        No reinstatement of Commitments

 

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

 

12.7                        Agent’s receipt of Notices

 

If the Agent receives a notice or election under clause 10 (Illegality, voluntary prepayment and cancellation) or clause 11 (Mandatory prepayment) it shall promptly forward a copy of that notice or election to either the Company or the affected Lender, as appropriate.

 

12.8                        Effect of Repayment and Prepayment on Commitments

 

If all or part of a Utilisation under the Facility 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 Base Currency Amount of the amount of the Utilisation which is repaid or prepaid) in respect of the Facility will be deemed to be cancelled on the date of repayment or prepayment.  Any cancellation under this clause 12.8 shall reduce the Commitments of the Lenders rateably under the Facility.

 

13                                  Interest

 

13.1                        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:

 

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(a)                                 Margin;

 

(b)                                 LIBOR or, in relation to any Loan in euro, EURIBOR; and

 

(c)                                  Mandatory Cost, if any.

 

13.2                        Payment of interest

 

The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (and, if the Interest Period is longer than 6 Months, on the dates falling at 6 Monthly intervals after the first day of the Interest Period).

 

13.3                        Default interest

 

(a)                                 If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to clause 13.3(b), is 2% higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this clause 13.3 shall be immediately payable by the Obligor on demand by the Agent.

 

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

 

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

 

(ii)                                  the rate of interest applying to the overdue amount during that first Interest Period shall be 2% higher than the rate which would have applied if the overdue amount had not become due.

 

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

 

13.4                        Notification of rates of interest

 

The Agent shall promptly notify the Lenders and the relevant Borrower (or the Company on its behalf) of the determination of a rate of interest under this Agreement.

 

14                                  Interest Periods

 

14.1                        Selection of Interest Periods and terms

 

(a)                                 A Borrower (or the Company on its behalf) may select an Interest Period for a Loan in the Utilisation Request for that Loan.

 

(b)                                 Not used.

 

(c)                                  Not used.

 

(d)                                 Subject to this clause 14, the Borrower (or the Company on its behalf) may select an Interest Period of 1, 2, 3 or 6 Months or any other period agreed between the Agent

 

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(acting on the instructions of all the Lenders in relation to the relevant Loan) and the Company.

 

(e)                                  No Interest Period for a Loan shall extend beyond the Termination Date.

 

(f)                                   Not used.

 

(g)                                  A Loan has 1 Interest Period only.

 

14.2                        Not used.

 

14.3                        Non-Business Days

 

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

 

14.4                        Not used.

 

15                                  Changes to the calculation of interest

 

15.1                        Margin adjustment

 

(a)                                 If:

 

(i)                                     no Default is continuing;

 

(ii)                                  a period of at least 12 Months has expired since the Closing Date; and

 

(iii)                               Leverage in respect of the most recently completed Relevant Period (as evidenced by the last Compliance Certificate) is within the range set out below,

 

then the Margin for each Loan will be the percentage per annum set out below in the column for the Facility opposite that range:

 

	
Leverage
    	
 
    	
Margin % p.a.
    	
 
    
	
Greater than 2.5:1
    	
 
    	
2.75
    	
 
    
	
Less than or equal   to 2.5:1, but greater than 2.0:1
    	
 
    	
2.50
    	
 
    
	
Less than or equal   to 2.0:1, but greater than 1.5:1
    	
 
    	
2.25
    	
 
    
	
Less than or equal   to 1.5:1 but greater than 1.0:1
    	
 
    	
2.00
    	
 
    
	
Less than or equal   to 1.0:1
    	
 
    	
1.75
    	
 
    

 

(b)

 

(i)                                     Any increase or decrease in the Margin shall take effect on the date which is the first day of the Interest Period for each Loan.

 

(ii)                                  If, following receipt by the Agent of the Annual Financial Statements of the Group and related Compliance Certificate, those statements and Compliance

 

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Certificate do not confirm the basis for a reduced Margin, then the provisions of clause 13.2 (Payment of interest) shall apply and the Margin for each Loan shall be the percentage per annum determined in accordance with clause 15.1(a) and the revised ratio of  Leverage calculated using the figures in the Compliance Certificate and the Company shall (or shall ensure the relevant Borrower shall) promptly pay to the Agent any amounts necessary to put the Lenders in the position they would have been in had the reduced Margin not have been applied during such period.

 

(iii)                               While a Default is continuing unremedied and unwaived, the Margin for each Loan shall be the highest percentage per annum set out in clause 15.1(a) for a Loan.

 

15.2                        Absence of quotations

 

Subject to clause 15.3, if LIBOR or, if applicable, EURIBOR is to be determined by reference to the Base Reference Banks but a Base Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR or EURIBOR shall be determined on the basis of the quotations of the remaining Base Reference Banks.

 

15.3                        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;

 

(ii)                                  the rate notified to the Agent by that Lender as soon as practicable and in any event by close of business on the date falling 2 Business Days after the Quotation Day (or, if earlier, on the date falling 2 Business Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select; and

 

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

 

(b)                                 If:

 

(i)                                     the percentage rate per annum notified by a Lender pursuant to clause 15.3(a)(ii) above is less than LIBOR or, in relation to any Loan in euro, EURIBOR; or

 

(ii)                                  a Lender has not notified the Agent of a percentage rate per annum pursuant to clause 15.3(a)(ii) above,

 

the cost to that Lender of funding its participation in that Loan for that Interest Period shall be deemed, for the purposes of clause 15.3(a) above, to be LIBOR in relation to a loan in euro, EURIBOR.

 

(c)                                  In this Agreement:

 

Market Disruption Event means:

 

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(i)                                     at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Base Reference Banks supplies a rate to the Agent to determine LIBOR or, if applicable, EURIBOR for the relevant currency and Interest Period or

 

(i)                                     before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 14 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of LIBOR or, if applicable, EURIBOR

 

15.4                        Alternative basis of interest or funding

 

(a)                                 If a Market Disruption Event occurs and the Agent or the Company so requires, the Agent and the Company 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 clause 15.4(a) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

 

15.5                        Break Costs

 

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

 

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

 

16                                  Fees

 

16.1                        Commitment fee

 

(a)                                 The Company shall pay to the Agent (for the account of each Lender) a fee in the Base Currency computed at the rate of 45% of the applicable Margin on that Lender’s Available Commitment for the Availability Period.

 

(b)                                 The accrued commitment fee is payable on the last day of each successive period of 3 Months which ends during the Availability Period, on the Closing Date, on the last day of the Availability Period and on the cancelled amount of the relevant Lender’s Available Commitment at the time the cancellation is effective.

 

16.2                        Participation fee

 

The Company shall pay to the Original Lenders a participation fee in the amount and at the times agreed in a Fee Letter.

 

16.3                        Agency fee

 

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

 

54

 

16.4                        Interest, commission and fees on Ancillary Facilities

 

The rate and time of payment of interest, commission, fees and any other remuneration in respect of each Ancillary Facility shall be determined by agreement between the relevant Ancillary Lender and the Borrower of that Ancillary Facility based upon normal market rates and terms.

 

16.5                        Interest, commission and fees on Bilateral Facilities

 

The rate and time of payment of interest, commission, fees and any other remuneration in respect of each Bilateral Facility shall be determined by agreement between the relevant Bilateral Lender and the Borrower of that Bilateral Facility based upon normal market rates and terms.

 

17                                  Tax gross up and indemnities

 

17.1                        Definitions

 

In this Agreement:

 

FATCA means Sections 1471 through 1474 of the Internal Revenue Code, and any regulations thereunder and official interpretations thereof

 

Non-US Finance Party means a Finance Party that is not a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code

 

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 accruing (or any sum deemed for the purposes of Tax to be received or receivable or accruing) under a Finance Document

 

Qualifying Lender means:

 

(i)                                     a Lender (other than a Lender within (ii) below) which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:

 

(A)                               a Lender:

 

(1)                                 which is a bank (as defined for the purpose of section 879 of ITA) making an advance under a Finance Document or

 

(2)                                 in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of ITA) at the time that that advance was made

 

and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance

 

(B)                               a Lender which is:

 

(1)                                 a company resident in the United Kingdom for United Kingdom tax purposes

 

(2)                                 a partnership each member of which is:

 

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(a)                                 a company so resident in the United Kingdom or

 

(b)                                 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA

 

(3)                                 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company or

 

(C)                               a Treaty Lender or

 

(ii)                                  a building society (as defined for the purposes of section 880 of the ITA) making an advance under a Finance Document

 

Tax Confirmation means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

(a)                                 a company resident in the United Kingdom for United Kingdom tax purposes

 

(b)                                 a partnership each member of which is:

 

(i)                                     a company so resident in the United Kingdom or

 

(ii)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA or

 

(c)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company

 

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

 

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

 

Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under clause 17.2 or a payment under clause 17.3

 

Treaty Lender means a Lender which:

 

(a)                                 is treated as a resident of a Treaty State for the purposes of the Treaty;

 

56

 

(b)                                 does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in the Loan is effectively connected; and

 

(c)                                  fulfils any other conditions that must be fulfilled under the relevant Treaty by residents of that Treaty State for such residents to obtain exemption from taxation of interest imposed by the United Kingdom, assuming for these purposes that all relevant procedural steps and formalities have been duly completed.

 

Treaty State means a jurisdiction having a double taxation agreement (Treaty) with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest

 

UK Non-Bank Lender means a Lender which gives a Tax Confirmation in the Assignment Agreement or Transfer Certificate which it executes on becoming a Party

 

Unless a contrary indication appears, in this clause 17 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination, acting in good faith.

 

17.2                        Tax gross-up

 

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

 

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

 

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

 

(d)                                 A payment shall not be increased under clause 17.2(c) by reason of a Tax Deduction on account of Tax imposed by the United Kingdom from a payment of interest on a Loan, or an amount treated as interest on a loan for Tax purposes, if on the date on which the payment falls due:

 

(i)                                     the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty, or any published practice or published concession of any relevant taxing authority;

 

(ii)                                  the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying Lender and:

 

(A)                               an officer of HM Revenue & Customs has given (and not revoked) a direction (Direction) under section 931 of ITA which relates to that

 

57

 

payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and

 

(B)                               the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made;

 

(iii)                               the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying Lender and:

 

(A)                               the relevant Lender has not given a Tax Confirmation to the Company; and

 

(B)                               the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Company, on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA;

 

(iv)                              the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under clause 17.2(g); or

 

(v)                                 the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender not granted a sub-participation to a person who, if that person had been a Lender, would not be a Qualifying Lender with regard to that payment but on that date that subparticipant is, if that person had been a Lender, not a Qualifying Lender (or, has ceased to be a Qualifying Lender) other than as a result of any change after the date it became a sub-participant in (or in the official interpretation, administration or application of) any law or treaty, or any published practice or published concession of any relevant taxing authority.  For the avoidance of doubt there shall be no obligation on a Finance Party to disclose any sub-participation to any Obligor.

 

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

 

(f)                                   Within 28 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

(g)

 

(i)                                     Subject to clause 17.2(g)(ii) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction

 

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(ii)                                  Nothing in clause 17.2(g)(i) above shall require a Treaty Lender to:

 

(A)                               register under the HMRC DT Treaty Passport scheme;

 

(B)                               apply the HMRC DT Treaty Passport scheme to any Loan if it has so registered; or

 

(C)                               file Treaty forms if it has included an indication to the effect that it wishes the HMRC DT Treaty Passport scheme to apply to this Agreement in accordance with clause 17.2(i) below or clause 17.7(a), and the Obligor making that payment has not complied with its obligations under clause 17.2(j) or clause 17.7(b).

 

(h)                                 A UK Non-Bank Lender shall promptly notify the Company and the Agent if there is any change in the position from that set out in the Tax Confirmation.

 

(i)                                     A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (for the benefit of the Agent and without liability to any Obligor) by including its scheme reference number and its jurisdiction of tax residence opposite its name in part 3 (The Original Lenders) of schedule 1.

 

(j)                                    Where a Lender includes the indication described in clause 17.2(i) above in part 3 (The Original Lenders) of schedule 1:

 

(i)                                     each Original Borrower shall, to the extent that that Lender is a Lender under the Facility made available to that Original Borrower pursuant to clause 2.1 (The Facility), file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of the date of this Agreement and shall promptly provide the Lender with a copy of that filing; and

 

(ii)                                  each Additional Borrower shall, to the extent that that Lender is a Lender under the Facility made available to that Additional Borrower pursuant to clause 2.1 (The Facility), file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of becoming an Additional Borrower and shall promptly provide the Lender with a copy of that filing.

 

(k)                                 If a Lender has not included an indication to the effect that it wishes the HMRC DT Treaty Passport scheme to apply to this Agreement in accordance with clause 17.2(i) above or clause 17.7(a), no Obligor shall file any form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s Commitments or its participation in any Loan.

 

(l)                                     A payment shall not be increased under clause 17.2(c) by reason of a Tax Deduction on account of Tax imposed by the United States from a payment of a Loan (i) pursuant to FATCA or (ii) attributable to the failure by a Finance Party to deliver the applicable US tax forms in accordance with clause 17.9.

 

17.3                        Tax indemnity

 

(a)                                 Each Obligor shall, within 3 Business Days of demand by the Agent, pay to a Protected Party an amount equal to the loss, liability or cost which that Protected

 

59

 

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)                                 Clause 17.3(a) 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 17.2; or

 

(B)                               would have been compensated for by an increased payment under clause 17.2 but was not so compensated solely because one of the exclusions in clause 17.2(d) or clause 17.2(l) applied.

 

(c)                                  A Protected Party making, or intending to make a claim under clause 17.3(a) shall promptly notify the Agent of the event which will give, or has given, rise to the claim, and will give details of the amount claimed following which the Agent shall notify the Company.

 

(d)                                 A Protected Party shall, on receiving a payment from an Obligor under this clause 17.3, notify the Agent.

 

17.4                        Tax Credit

 

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

 

(a)                                 a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part or to that Tax Payment; and

 

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

 

the Finance Party shall (provided that no Default is continuing) pay an amount to the Obligor as soon as reasonably practicable from the date on which it has acting reasonably determined that it has obtained, utilised and retained such Tax Credit which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor.

 

17.5                       Refund of Tax Deduction

 

If a Borrower incorporated in the United Kingdom makes a Tax Deduction in respect of tax imposed by the United Kingdom on interest from a payment of interest to a Treaty Lender, and clause 17.2 (Tax Gross-up) applies to increase the amount of the payment due to that

 

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Treaty Lender from that Borrower, such Borrower shall promptly provide the Treaty Lender with an executed original certificate, in the form required by HM Revenue & Customs, evidencing the Tax Deduction.  The Treaty Lender shall, within a reasonable period following receipt of such certificate, apply to HM Revenue & Customs for a refund of the amount of the Tax and following receipt of this refund shall inform the Borrower of such receipt within a reasonable period of such receipt. This clause 17.5 shall not require a Treaty Lender to apply for a refund of the amount of the Tax Deduction if the procedural formalities required in relation to making such an application are materially more onerous or require the disclosure of materially more information than the procedural formalities required by HM Revenue & Customs as at the date of this Agreement in relation to such an application.

 

17.6                        Lender Status Confirmation

 

Each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate or Assignment Agreement or an Increase Confirmation which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:

 

(a)                                 not a Qualifying Lender;

 

(b)                                 a Qualifying Lender (other than a Treaty Lender); or

 

(c)                                  a Treaty Lender.

 

If a New Lender fails to indicate its status in accordance with this clause 17.6 then such New Lender shall be treated for the purposes of this Agreement (including each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Company).  For the avoidance of doubt, a Transfer Certificate or Assignment Agreement or Increase Confirmation shall not be invalidated by any failure of a Lender to comply with this clause 17.6.

 

17.7                        HMRC DT Treaty Passport scheme confirmation

 

(a)                                 A New Lender or an Increase Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (for the benefit of the Agent and without liability to any Obligor) in the Transfer Certificate, Assignment Agreement or Increase Confirmation which it executes by including its scheme reference number and its jurisdiction of tax residence in that Transfer Certificate, Assignment Agreement or Increase Confirmation.

 

(b)                                 Where a New Lender or an Increase Lender includes the indication described in clause 17.7(a) above in the relevant Transfer Certificate, Assignment Agreement or Increase Confirmation:

 

(i)                                     each Borrower which is a Party as a Borrower as at the relevant Transfer Date or the date on which the increase in Total Commitments described in the relevant Increase Confirmation takes effect shall, to the extent that that New Lender or Increase Lender becomes a Lender under the Facility which is made available to that Borrower pursuant to clause 2.1 (The Facility), file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of that Transfer Date or that date on which the increase in Total Commitments takes effect and shall promptly provide the Lender with a copy of that filing; and

 

61

 

(ii)                                  each Additional Borrower which becomes an Additional Borrower after the relevant Transfer Date or the date on which the increase in Total Commitments described in the relevant Increase Confirmation takes effect shall, to the extent that that New Lender or Increase Lender is a Lender under the Facility which is made available to that Additional Borrower pursuant to clause 2.1 (The Facility), file a duly completed form DTTP2 in respect of such Lender with HM Revenue & Customs within 30 days of becoming an Additional Borrower and shall promptly provide the Lender with a copy of that filing.

 

17.8                        Co-operation

 

In the event that it is necessary for any procedural formalities to be completed to allow an Obligor to make a payment of interest on a Loan to a Treaty Lender without a Tax Deduction, the Obligor and the Treaty Lender shall co-operate to procure the filing of any relevant tax forms including (to the extent applicable and available under the prevailing law, and only where the HMRC DT Treaty Passport scheme does not apply to a Loan), an application form for an Obligor to obtain authorisation  to pay interest to a Treaty Lender without a Tax Deduction in respect of tax imposed by the United Kingdom on interest, and where reasonably practicable such filing shall be made before the end of the relevant Interest Period. Nothing in this clause shall require a Treaty Lender to:

 

(a)                                 register under the HMRC DT Treaty Passport scheme; or

 

(b)                                 apply the HMRC DT Treaty Passport scheme to any Loan if it has so registered; or

 

(c)                                  file Treaty forms if it has included an indication to the effect that it wishes the HMRC DT Treaty Passport scheme to apply to this Agreement in accordance with clause 17.2(i) or clause 17.7(a), and the Obligor making that payment has not complied with its obligations under clause 17.2(j) or clause 17.7(b).

 

17.9                        US tax forms

 

(a)                                 Each Finance Party that is a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to each applicable Obligor and the Agent executed originals of US Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable law or reasonably requested by the applicable Obligor or the Agent as will enable such Obligor or the Agent, as the case may be, certifying to such Finance Party’s exemption from US backup withholding and/or information reporting requirements.

 

(b)                                 Each Non-US Finance Party shall deliver to each applicable Obligor and the Agent (in such number of copies as shall be requested by the recipient) as soon as reasonably practicable following the date on which such Non-US Finance Party becomes a Finance Party under this Agreement, but no later than three Business Days prior to the date the first payment is due under the Finance Documents to that Non-US Finance Party (and from time to time thereafter upon the request of such Obligor or the Agent), whichever of the following is applicable:

 

(i)                                     properly completed and duly executed originals of US Internal Revenue Service Form W-8BEN (claiming a complete exemption from United States withholding tax on payments made to such Non-US Finance Party pursuant to the Finance Documents under the benefits of an applicable income tax treaty);

 

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(ii)                                  properly completed and duly executed originals of US Internal Revenue Service Form W-ECI (claiming a complete exemption from United States withholding tax because payments made to such Non-US Finance Party pursuant to the Finance Documents are effectively connected with a US trade or business);

 

(iii)                               properly completed and duly executed originals of US Internal Revenue Service Form W-8IMY and all required supporting documentation (claiming a complete exemption from United States withholding tax because payments made to such Non-US Finance Party pursuant to the Finance Documents); or

 

(iv)                              in the case of a Non-US Finance Party claiming the benefits of the exemption for portfolio interest under Sections 871(h) or 881(c) of the Internal Revenue Code, (x) a certificate to the effect that such Non-US Finance Party is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal Revenue Code and (y) properly completed and duly executed originals of US Internal Revenue Service Form W-8BEN.

 

(c)                                  If a payment made by any Obligor hereunder or under any other Finance Document would be subject to United States withholding tax imposed pursuant to FATCA (including those contained in Sections 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Finance Party shall use commercially reasonable efforts to deliver to such Obligor and the Agent, as reasonably requested by such Obligor, (A) two properly completed and duly executed original certifications prescribed by applicable law and/or reasonably satisfactory to such Obligor and the Agent that establish that such payment is exempt from United States withholding tax imposed pursuant to FATCA and (B) any other documentation reasonably requested by such Obligor sufficient for such Obligor and the Agent to comply with their obligations under FATCA and to determine that such Finance Party has complied with such applicable reporting and other requirements of FATCA.

 

17.10                 Stamp taxes

 

The Obligors shall pay and, within 3 Business Days of demand, indemnify each Secured Party and Arrangers against any cost, loss or liability that Secured Party or Arrangers incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any  Finance Document provided that this clause 17.10 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.

 

17.11                 Value added tax

 

(a)                                 All amounts set out or expressed in a Finance Document to be payable by any Party to a Finance Party which (in whole or in part) constitute the consideration for a supply or supplies for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such supply or supplies, and accordingly, subject to clause 17.11(b), if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying any other consideration for such supply)

 

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an amount equal to the amount of such VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to such Party).

 

(b)                                 If VAT is or becomes chargeable on any supply made by any Finance Party (Supplier) to any other Finance Party (Recipient) under a Finance Document, and any Party other than the Recipient (Subject Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse the Recipient in respect of that consideration), such Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT.  The Recipient will promptly pay to the Subject Party an amount equal to any credit or repayment obtained by the Recipient from the relevant tax authority which the Recipient reasonably determines is in respect of such VAT.

 

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

 

(d)                                 Any reference in this clause 17.11 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).

 

17.12                 FATCA Information

 

(a)                                 Subject to clause 17.12(c), each Party shall, within 10 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; and

 

(ii)                                  supply to that other Party such forms, documentation and other information relating to its status under FATCA (including its applicable passthru percentage or other information required under the Treasury Regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA.

 

(b)                                 If a Party confirms to another Party pursuant to clause 17.12(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)                                  Clause 17.12(a) above shall not oblige any Finance Party to do anything which would or might in its reasonable opinion constitute a breach of:

 

(i)                                     any law or regulation;

 

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(ii)                                  any policy of that Finance Party;

 

(iii)                               any fiduciary duty; or

 

(iv)                              any duty of confidentiality.

 

(d)                                 If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with clause 17.12(a) (including, for the avoidance of doubt, where clause 17.12(c) applies), then:

 

(i)                                     if that Party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such Party shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

 

(ii)                                  if that Party failed to confirm its applicable passthru percentage then such Party shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

 

until (in each case) such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

18                                  Increased costs

 

18.1                        Increased costs

 

(a)                                 Subject to clause 18.3 the Obligors shall, within 3 Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of:

 

(i)                                     the introduction or implementation, suspension or revocation of or any change in (or in the interpretation, administration or application of) any law or regulation; or

 

(ii)                                  compliance with any law or regulation,

 

occurring or made, as applicable, after the date of this Agreement.

 

(b)                                 In this Agreement Increased Costs means:

 

(i)                                     a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital; or

 

(ii)                                  an additional or increased cost,

 

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 an Ancillary Commitment or funding or performing its obligations under any Finance Document.

 

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18.2                        Increased cost claims

 

(a)                                 A Finance Party intending to make a claim pursuant to clause 18.1 shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Company.

 

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

 

18.3                        Exceptions

 

(a)                                 Clause 18.1 does not apply to the extent any Increased Cost is:

 

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

 

(ii)                                  compensated for by clause 17.3 (Tax indemnity) (or would have been compensated for under clause 17.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in clause 17.3(b) (Tax indemnity) applied);

 

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

 

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

 

(b)                                 In this clause 18.3 reference to a Tax Deduction has the same meaning given to the term in clause 17.1 (Definitions).

 

19                                  Other indemnities

 

19.1                        Currency indemnity

 

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

 

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

 

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

 

that Obligor shall as an independent obligation, within 3 Business Days of demand by the Agent, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

(b)                                 Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable (or in which it is otherwise determined to be payable pursuant to clause 34.10 (Change of currency).

 

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19.2                        Other indemnities

 

(a)                                 The Company shall (or shall ensure that an Obligor will), within 3 Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by it as a result of:

 

(i)                                     the occurrence of any Event of Default;

 

(ii)                                  a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of clause 33 (Sharing among the Finance Parties);

 

(iii)                               funding, or making arrangements to fund, its participation in a Loan requested by a 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 gross negligence or wilful default by that Finance Party alone); or

 

(iv)                              a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by a Borrower (or the Company on its behalf).

 

19.3                        Indemnity to the Agent

 

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

 

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

 

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

 

20                                  Mitigation by the Lenders

 

20.1                        Mitigation

 

(a)                                 Each Finance Party shall, in consultation with the Company, 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 10.1 (Illegality), clause 17 (Tax gross up and indemnities), clause 18 (Increased costs) or paragraph 2 of schedule 4 (Mandatory Cost Formula), including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

(b)                                 Clause 20.1(a) does not in any way limit the obligations of any Obligor under the Finance Documents.

 

20.2                        Limitation of liability

 

(a)                                 The Company shall (or shall ensure that an Obligor will), within 3 Business Days of demand 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 20.1.

 

(b)                                 A Finance Party is not obliged to take any steps under clause 20.1. if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

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21                                  Costs and expenses

 

21.1                        Transaction expenses

 

The Company shall promptly on demand pay the Agent and the Arrangers the amount of all costs and expenses (including legal fees subject to any cap previously agreed between the Company and the Agent) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution, syndication and perfection of:

 

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

 

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

 

21.2                        Amendment costs

 

If:

 

(a)                                 an Obligor requests an amendment, waiver or consent; or

 

(b)                                 an amendment is required pursuant to:

 

(i)                                     clause 34.10 (Change of currency); or

 

(ii)                                  schedule 4 (Mandatory Cost Formula),

 

the Company shall, within 3 Business Days of demand, reimburse the Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

21.3                        Enforcement and preservation costs

 

The Company shall, within 3 Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of, or the preservation of, any rights under any Finance Document.

 

22                                  Guarantee and indemnity

 

22.1                        Guarantee and indemnity

 

Each Guarantor irrevocably and unconditionally jointly and severally:

 

(a)                                 guarantees to each Finance Party punctual performance by each other Obligor of all that Obligor’s obligations under the Finance Documents;

 

(b)                                 undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and

 

(c)                                  agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay 

 

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under this clause 22 if the amount claimed had been recoverable on the basis of a guarantee.

 

22.2                        Continuing Guarantee

 

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

 

22.3                        Reinstatement

 

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any Security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this clause 22 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

 

22.4                        Waiver of defences

 

The obligations of each Guarantor under this clause 22 will not be affected by an act, omission, matter or thing which, but for this clause 22, would reduce, release or prejudice any of its obligations under this clause 22 (without limitation and whether or not known to it or any Finance Party) including:

 

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

 

(b)                                 the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

 

(c)                                  the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or Security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any Security;

 

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

 

(e)                                  any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or Security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or Security;

 

(f)                                   any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or Security; or

 

(g)                                  any insolvency or similar proceedings.

 

22.5                        Guarantor Intent

 

Without prejudice to the generality of clause 22.4, each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) 

 

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variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following:

 

(a)                                 business acquisitions of any nature;

 

(b)                                 increasing working capital;

 

(c)                                  enabling investor distributions to be made;

 

(d)                                 carrying out restructurings;

 

(e)                                  refinancing existing facilities;

 

(f)                                   refinancing any other indebtedness;

 

(g)                                  making facilities available to new borrowers;

 

(h)                                 any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and

 

(i)                                     any fees, costs and/or expenses associated with any of the foregoing.

 

22.6                        Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or Security or claim payment from any person before claiming from that Guarantor under this clause 22.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

22.7                        Appropriations

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

 

(a)                                 refrain from applying or enforcing any other moneys, Security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

 

(b)                                 hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this clause 22.

 

22.8                        Deferral of Guarantors’ rights

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this clause 22 :

 

(a)                                 to be indemnified by an Obligor;

 

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(b)                                 to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents;

 

(c)                                  to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or Security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

 

(d)                                 to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under clause 22.1 (Guarantee and indemnity);

 

(e)                                  to exercise any right of set-off against any Obligor; and/or

 

(f)                                   to claim or prove as a creditor of any Obligor in competition with any Finance Party.

 

If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with clause 34 (Payment mechanics).

 

22.9                        Release of Guarantors’ right of contribution

 

If any Guarantor (Retiring Guarantor) ceases to be a Guarantor in accordance with the terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

 

(a)                                 that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and

 

(b)                                 each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other Security taken pursuant to, or in connection with, any Finance Document where such rights or Security are granted by or in relation to the assets of the Retiring Guarantor.

 

22.10                 US  Guarantors

 

(a)                                 Each US Guarantor acknowledges that:

 

(i)                                     it will receive valuable direct or indirect benefits as a result of the transactions financed by the Finance Documents;

 

(ii)                                  those benefits will constitute reasonably equivalent value and fair consideration for the purpose of any Fraudulent Transfer Law;

 

(iii)                               each Lender has acted in good faith in connection with the guarantee given by that US Guarantor and the transactions contemplated by the Finance Documents; and

 

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(iv)                              it has not incurred and does not intend to incur debts beyond its ability to pay as they mature.

 

(b)                                 Each Lender agrees that each US Guarantor’s liability under this clause is limited to the extent (if any) necessary so that no obligation of, or payment by, any US Guarantor under this clause is subject to avoidance or turnover under any Fraudulent Transfer Law.

 

(c)                                  Each US Guarantor represents and warrants to each Lender that:

 

(i)                                     the aggregate amount of its debts (including its obligations under the Finance Documents (other than obligations that are, at the relevant time, wholly contingent or prospective)) is less than the aggregate value (being the lesser of fair valuation and present fair saleable value) of its assets;

 

(ii)                                  its capital is not unreasonably small to carry on its business as it is being conducted;

 

(iii)                               it has not incurred and does not intend to incur debts beyond its ability to pay as they become due; and

 

(iv)                              it has not made a transfer or incurred any obligation under any Finance Document with the intent to hinder, delay or defraud any of its present or future creditors.

 

22.11                 Additional security

 

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

 

22.12                 Guarantee Limitations

 

This guarantee does not apply to any liability to the extent that it would result in this guarantee constituting unlawful financial assistance within the meaning of sections 678 or 679 of the CA2006 or any equivalent and applicable provisions under the laws of the jurisdiction of incorporation of the relevant Guarantor and, with respect to any Additional Guarantor, is subject to any limitations set out in the Accession Deed applicable to such Additional Guarantor.

 

23                                  Representations

 

23.1                        General

 

Each Obligor makes the representations and warranties set out in this clause 23 to each Finance Party.

 

23.2                        Status

 

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

 

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

 

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23.3                        Binding obligations

 

Subject to the Legal Reservations the obligations expressed to be assumed by it in each Transaction Document to which it is a party are legal, valid, binding and enforceable obligations.

 

23.4                        Non-conflict with other obligations

 

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

 

(a)                                 any law or regulation applicable to it;

 

(b)                                 the constitutional documents of any member of the Group; or

 

(c)                                  any agreement or instrument binding upon it or any member of the Group or any of its or any member of the Group’s assets or constitute a default or termination event (however described) under any such agreement or instrument unless such conflict, default or termination event would not have or is not reasonably likely to have a Material Adverse Effect.

 

23.5                        Power and authority

 

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

 

(b)                                 No limit on its powers will be exceeded as a result of the borrowing, grant of Security or giving of guarantees or indemnities contemplated by the Transaction Documents to which it is a party.

 

23.6                        Validity and admissibility in evidence

 

(a)                                 All Authorisations required:

 

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

 

(ii)                                  to make the Transaction Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected and are in full force and effect except any Authorisation referred to in clause 23.9 (No filing or stamp taxes).

 

(b)                                 All Authorisations necessary for the conduct of the business, trade and ordinary activities of the members of the Group have been obtained or effected and are in full force and effect if failure to obtain or effect those Authorisations has or is reasonably likely to have a Material Adverse Effect.

 

23.7                        Governing law and enforcement

 

(a)                                 The choice of governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

 

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(b)                                 Any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

23.8                        Insolvency

 

(a)                                 No:

 

(i)                                     corporate action, legal proceeding or other procedure or step described in clause 27.7(a) (Insolvency proceedings); or

 

(ii)                                  creditors’ process described in clause 27.8 (Creditors’ process),

 

has been taken or, so far as it is aware, threatened in relation to a member of the Group.

 

(b)                                 No corporate action, legal proceeding or other procedure or step described in clause 27.7(b) (Insolvency proceedings) has been taken or, so far as it is aware, threatened in relation to any member of the Group incorporated in the US.

 

(c)                                  None of the circumstances described in clause 27.6 (Insolvency) applies to a member of the Group.

 

23.9                        No filing or stamp taxes

 

Under the laws of its Relevant Jurisdiction it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except for those registrations specifically set out in any legal opinion delivered to the Agent pursuant to clause 4.1 (Initial conditions precedent).

 

23.10                 Deduction of Tax

 

It is not required to make any deduction for or on account of Tax from any payment it may make under any Finance Document to a Lender which is:

 

(a)                                 a Qualifying Lender:

 

(i)                                     falling within paragraph (i)(A) of the definition of Qualifying Lender;

 

(ii)                                  except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, falling within paragraph (i)(B) of the definition of Qualifying Lender; or

 

(iii)                               falling within paragraph (ii) of the definition of Qualifying Lender or;

 

(b)                                 a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

 

23.11                 No default

 

(a)                                 No Event of Default and, on the date of this Agreement and the Closing Date, no Default is continuing or is reasonably likely to result from the making of any Loan or 

 

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the entry into, the performance of, or any transaction contemplated by, any Transaction Document.

 

(b)                                 No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (however described) 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 is reasonably likely to have a Material Adverse Effect.

 

23.12                 No misleading information

 

(a)                                 All factual information contained in the Information Package was true and accurate in all material respects as at the date of the relevant report or document containing the information or (as the case may be) as at the date the information is expressed to be given.

 

(b)                                 The Base Case Model has been prepared in accordance with the Accounting Principles as applied to the Original Financial Statements of the Company, and the financial projections contained in the Base Case Model have been prepared on the basis of recent historical information, are fair and based on reasonable assumptions and have been approved by the board of directors of the Company.

 

(c)                                  Any financial projection or forecast contained in the Information Package has been prepared on the basis of recent historical information and on the basis of reasonable assumptions and was fair (as at the date of the relevant report or document containing the projection or forecast) and arrived at after careful consideration (it being acknowledged by the Finance Parties that financial projections or forecasts are subject to uncertainties and contingencies and no representation or warranty is given that such financial projections or forecasts will be realised).

 

(d)                                 The expressions of opinion or intention provided by or on behalf of an Obligor for the purposes of the Information Package were made after careful consideration and (as at the date of the relevant report or document containing the expression of opinion or intention) were fair and based on reasonable grounds.

 

(e)                                  No event or circumstance has occurred or arisen and no information has been omitted from the Information Package and no information has been given or withheld that results in the information, opinions, intentions, forecasts or projections contained in the Information Package being untrue or misleading in any material respect.

 

(f)                                   All material information provided to a Finance Party by or on behalf of the Group on or before the date of this Agreement and not superseded before that date (whether or not contained in the Information Package) is accurate and not misleading in any material respect and all projections provided to any Finance Party on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied.

 

(g)                                  All other written information provided by the Company to a Finance Party was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any material respect.

 

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23.13                 Original Financial Statements

 

(a)                                 Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied.

 

(b)                                 Its unaudited Original Financial Statements fairly represent its financial condition and results of operations for the relevant period in accordance with basis of preparation and Accounting Principles unless expressly disclosed to the Agent in writing to the contrary prior to the date of this Agreement.

 

(c)                                  Its audited Original Financial Statements give a true and fair view of its financial condition and results of operations during the relevant Financial Year.

 

(d)                                 There has been no material adverse change in its assets, business or financial condition (or the assets, business or consolidated financial condition of the Group, in the case of the Company) since 31 December 2010.

 

(e)                                  The Original Financial Statements of the Company do not consolidate the results, assets or liabilities of any person or business which does not form part of the Group (other than in respect of any joint venture) as at the Closing Date.

 

(f)                                   Its most recent financial statements delivered pursuant to clause 24.1 (Financial statements):

 

(i)                                     have been prepared in accordance with the Accounting Principles as applied to the Original Financial Statements and the Base Case Model (or if there has been a change to the Accounting Principles the requirements of clause 24.3(c) have been complied with); and

 

(i)                                     give a true and fair view of (if audited) or fairly present (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate.

 

(g)                                  The budgets and forecasts supplied under this Agreement were arrived at after careful consideration and have been prepared in good faith on the basis of recent historical information and on the basis of assumptions which were reasonable as at the date they were prepared and supplied (it being acknowledged by the Finance Parties that financial projections or forecasts are subject to uncertainties and contingencies and no representation or warranty is given that such financial projections or forecasts warranties will be realised).

 

(h)                                 Since the date of the most recent financial statements delivered pursuant to clause 24.1 (Financial statements) there has been no material adverse change in the business, assets or financial condition of the Group.

 

23.14                 No proceedings pending or threatened

 

(a)                                 No litigation, arbitration or administrative proceedings or investigations of, or before, any court, arbitral body or agency which, if adversely determined, are reasonably likely to result in liabilities to it or any of its Subsidiaries (whether actual or contingent) which has or is reasonably likely to have a Material Adverse Effect have (so far as it is aware) been started or threatened against it or any of its Subsidiaries.

 

(b)                                 No labour disputes are current or, so far as it is aware, threatened against any member of the Group which have or are reasonably likely to result in liabilities to it or 

 

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any of its Subsidiaries which has or is reasonably likely to have a Material Adverse Effect.

 

23.15                 No breach of laws

 

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.

 

23.16                 Environmental laws

 

(a)                                 It and each of its Subsidiaries is in compliance with clause 26.3 (Environmental compliance) and, so far as it is aware, no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to result in a Material Adverse Effect.

 

(b)                                 No Environmental Claim has been commenced or, so far as it is aware, is threatened against any member of the Group where that claim has or is reasonably likely, if determined against that member of the Group, to result in a Material Adverse Effect.

 

(c)                                  The cost to the Group of compliance with Environmental Laws (including Environmental Permits) is, so far as it is aware, adequately provided for in the Base Case Model.

 

23.17                 Taxation

 

(a)                                 It is not (and none of its Subsidiaries is) materially 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.

 

(b)                                 No claims or investigations are being, or are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect to Taxes such that a liability of, or claim against, any member of the Group which would have or is reasonably likely to have a Material Adverse Effect.

 

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

 

23.18                 Security and Financial Indebtedness

 

(a)                                 No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement.

 

(b)                                 No member of the Group has any Financial Indebtedness outstanding other than as permitted by this Agreement.

 

23.19                 Not Used

 

23.20                 Good title to assets

 

It and each of its Subsidiaries has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted.

 

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23.21                 Legal and beneficial ownership

 

It and each of its Subsidiaries is the sole legal and beneficial owner of the respective assets over which it purports to grant Security.

 

23.22                 Shares

 

There are no agreements in force which provide for the issue, allotment or transfer of, or grant any person the right to call for the issue, allotment or transfer of, any share or loan capital of any member of the Group (including any option or right of pre-emption or conversion) other than pursuant to the Share Option Documents.

 

23.23                 Intellectual Property

 

It and each of its Subsidiaries:

 

(a)                                 is the sole legal and beneficial owner of or has licensed to it on normal commercial terms all the Intellectual Property which is material in the context of its business and which is required by it in order to carry on its business as it is being conducted and as contemplated in the Base Case Model and where the Intellectual Property is licensed to it, that licence has not been breached in any material respect or terminated by any party;

 

(b)                                 does not, in carrying on its businesses, infringe any Intellectual Property of any third party in any respect which has or is reasonably likely to have a Material Adverse Effect; and

 

(c)                                  has taken all formal or procedural actions (including payment of fees) required to maintain any Intellectual Property owned by it which is required by it in order to carry on its business as it is being conducted and as contemplated in the Base Case Model.

 

23.24                 Group Structure Chart

 

The Group Structure Chart delivered to the Agent pursuant to part 1 (Conditions precedent to signing this Agreement) of schedule 2 is true, complete and accurate in all material respects.

 

23.25                 Obligors

 

(a)                                 Each Subsidiary of the Company incorporated in the United Kingdom (other than a Dormant Subsidiary, LGL 1996 Limited and Biggleswick Limited) and each Material Company (other than the French Subsidiary and the Czech Subsidiary) incorporated in any other jurisdiction is an Obligor on or prior to the first Utilisation Date.

 

(b)                                 The aggregate:

 

(i)                                     earnings before interest, tax and amortisation (calculated on the same basis as EBITA) of the Guarantors on the Closing Date (calculated on an unconsolidated basis and excluding all unrealised intra-Group profits of any member of the Group) exceeds 75% of  EBITA of the Group; and

 

(ii)                                  gross assets of the Guarantors on the Closing Date (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the consolidated gross assets of the Group.

 

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23.26                 Accounting reference date

 

The Accounting Reference Date of each member of the Group is 31 December.

 

23.27                 Centre of main interests and establishments

 

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

 

23.28                 Dormant Companies

 

There are no Dormant Subsidiaries other than:

 

(a)                                 BAL 1996 Limited; and

 

(b)                                 Mel Chemicals China Limited.

 

23.29                 Pensions

 

Except for the Defined Benefit Schemes:

 

(a)                                 neither it nor any of its Subsidiaries is or has at any time been an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993); and

 

(b)                                 neither it nor any of its Subsidiaries is or has at any time been connected with or an associate of (as those terms are used in sections 38 and 43 of the Pensions Act 2004) such an employer.

 

23.30                 No adverse consequences

 

(a)                                 It is not necessary under the laws of its Relevant Jurisdictions:

 

(i)                                     in order to enable any Finance Party to enforce its rights under any Finance Document; or

 

(ii)                                  by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document,

 

that any Finance Party should be licensed, qualified or otherwise entitled to carry on business in any of its Relevant Jurisdictions.

 

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

 

23.31                US  Regulations

 

(a)                                 Employee Benefit Plans

 

(i)                                     No Obligor or ERISA Affiliate has incurred during any time within the last six years or could be reasonably expected to incur any liability to, or on account

 

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of, a Multiemployer Plan as a result of a violation of section 515 of ERISA or pursuant to section 4201, 4204 or 4212(c) of ERISA.

 

(ii)                                  Each Employee Plan complies in form and operation in all material respects with ERISA, the Internal Revenue Code and all other applicable laws and regulations.

 

(iii)                               The present value of the aggregate benefit liabilities under each of the Employee Plans (other than any Multiemployer Plan), determined as of the end of such plan’s most recently ended plan year on the basis of the actuarial methods and assumptions specified for funding purposes in such plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such plan allocable to such benefit liabilities by more than US$9,000,000 (or its equivalent) in the case of any single Employee Plan and by more than US$10,500,000 (or its equivalent) in the aggregate for all Employee Plans.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

 

(iv)                              There is (to the best of each Obligor’s and ERISA Affiliates’ knowledge and belief) no litigation, arbitration, administrative proceeding or claim pending or threatened against or with respect to any Employee Plan (other than routine claims for benefits) which has or, if adversely determined, could reasonably be expected have a Material Adverse Effect.

 

(v)                                 Within the last 6 years, each Obligor and each ERISA Affiliate has made all material contributions to each Employee Plan and Multiemployer Plan required by law within the applicable time limits prescribed by law, the terms of that Plan and any contract or agreement requiring contributions to that Plan.

 

(vi)                              No Obligor or ERISA Affiliate has ceased operations at a facility so as to be subject to the provisions of section 4062(e) of ERISA, withdrawn as a substantial employer so as to be subject to the provisions of section 4063 of ERISA, or ceased making contributions to any Employee Plan subject to section 4064(a) of ERISA to which it made contributions.

 

(vii)                           No Obligor or ERISA Affiliate has incurred any material liability to the PBGC, which remains outstanding or could reasonably be expected to incur any material liability to the PBGC.

 

(viii)                        No ERISA Event has occurred or, as at the date of this Agreement, is reasonably likely to occur that could reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Margin Regulations

 

(i)                                     The proceeds of any Utilisation will not be used, directly or indirectly, in whole or in part, for purchasing or carrying Margin Stock or for any purpose which might (whether immediately, incidentally or ultimately) cause all or any part of the Facility to be a purpose credit within the meaning of Regulation T, U or X.

 

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(ii)                                  Following the application of the proceeds of any Utilisation, not more than 25 per cent of the value of the assets of the Obligors, as a group (on a consolidated basis), will be invested in Margin Stock.

 

(iii)                               Neither any Obligor nor any agent acting on its behalf has taken or will take any action which might cause any document delivered under or in connection with the Facility to violate any regulation of the Board of Governors of the Federal Reserve System (including Regulation T, U or X) or violate the United States Securities Exchange Act of 1934 or any applicable US federal or state securities law.

 

(c)                                  Other US Regulation

 

(i)                                     No Obligor or any Affiliate of an Obligor is:

 

(A)                               a public utility within the meaning of, or subject to regulation under, the United States Federal Power Act of 1920

 

(B)                               an investment company or a company controlled by an investment company within the meaning of the United States Investment Company Act of 1940 or

 

(C)                               subject to regulation under any United States federal or state law or regulation that limits its ability to incur or guarantee indebtedness.

 

(d)                                 Anti-Terrorism Law

 

No Obligor or any of its Subsidiaries or any of its Affiliates or Holding Companies, or to its knowledge any of their respective brokers or other agents acting or benefiting in any capacity in connection with the Facility:

 

(i)                                     is in violation of any Anti-Terrorism Law or

 

(ii)                                  is a Designated Person.

 

23.32                 Sanctions

 

The Company represents that neither the Company nor any member of the Group (collectively for the purpose of this clause only, the Company) or, to the knowledge of the Company, any director, officer, employee, agent, affiliate or representative of the Company is an individual or entity (Person) currently the subject of any sanctions administered or enforced by OFAC, the United Nations Security Council (UNSC), the European Union, Her Majesty’s Treasury (HMT), or other relevant sanctions authority (collectively, Sanctions), nor is the Company located, organised or resident in a country or territory that is the subject of Sanctions.  The Company represents and covenants that it will not, directly or indirectly, use the proceeds of the transaction, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, to fund any activities of or business with any Person, or in Burma/Myanmar, Cuba, Iran, Libya, North Korea, Sudan or in any other country or territory, that, at the time of such funding would result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

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23.33                 Times when representations made

 

(a)                                 All the representations and warranties in this clause 23 are made by each Obligor on the date of this Agreement except for the representations and warranties set out in clause 23.12 which are deemed to be made by each Obligor (i) with respect to the Information Memorandum, on the date the Information Memorandum is approved by the Company, (ii) with respect to the Information Package, on the date of this Agreement and on the Closing Date and (iii) with respect to the Information Package (other than the Base Case Model), on the date of this Agreement and on any later date on which the Information Package (or part of it) is released to the Arrangers.

 

(b)                                 All the representations and warranties in this clause 23 are deemed to be made by each Obligor on the Closing Date.

 

(c)                                  The Repeating Representations are deemed to be made by each Obligor on the date of each Utilisation Request, on each Utilisation Date and on the first day of each Interest Period (except that those contained in clause 23.13(a) to 23.13(e) will cease to be so made once subsequent financial statements have been delivered under this Agreement).

 

(d)                                 All the representations and warranties in this clause 23 except clause 23.12, clause 23.24 and clause 23.28 are deemed to be made by each Additional Obligor on the day on which it becomes (or it is proposed that it becomes) an Additional Obligor.

 

(e)                                  Each representation or warranty deemed to be made after the date of this Agreement shall be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made.

 

24                                  Information undertakings

 

The undertakings in this clause 24 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.

 

24.1                        Financial statements

 

The Company shall supply to the Agent in sufficient copies for all the Lenders:

 

(a)                                 as soon as they are available, but in any event within 180 days after the end of each of its Financial Years:

 

(i)                                     its audited consolidated financial statements for that Financial Year; and

 

(ii)                                  the financial statements (consolidated if appropriate) of each Obligor (audited where required under the Relevant Jurisdiction) for that Financial Year;

 

(b)                                 as soon as they are available, but in any event within 45 days after the end of each calendar month its management financial statements on a consolidated basis for that calendar month and for the Financial Year to date.

 

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24.2                        Provision and contents of Compliance Certificate

 

(a)                                 The Company shall supply a Compliance Certificate to the Agent with each set of its Annual Financial Statements and each set of its Quarterly Financial Statements.

 

(b)                                 The Compliance Certificate shall, amongst other things, set out (in reasonable detail) computations as to compliance with clause 25 (Financial covenants).

 

(c)                                  Each Compliance Certificate shall be signed by two directors of the Company.

 

24.3                        Requirements as to financial statements

 

(a)                                 The Company shall procure that:

 

(i)                                     each set of Annual Financial Statements shall be audited by the auditors and shall include the audited profit and loss accounts, balance sheets and cashflow statements of each Obligor (prepared in the case of the Company on a consolidated basis); and

 

(ii)                                  each set of Monthly Financial Statements shall be in the form of the monthly management accounts supplied by the Company to the Agent pursuant to clause 4.1 (Initial conditions precedent).

 

(b)                                 Each set of financial statements delivered pursuant to clause 24.1:

 

(i)                                     in the case of the Annual Financial Statements, shall be accompanied by any letter addressed to the management of the relevant company (to the extent the Company receives such a letter) by the auditors accompanying those Annual Financial Statements;

 

(ii)                                  in the case of the Monthly Financial Statements of the Company, shall be accompanied by a commentary by the finance director of the Company comparing actual performance for the period to which the financial statements relate to:

 

(A)                               the projected performance for that period set out in the Budget; and

 

(B)                               the actual performance for the corresponding period in the preceding Financial Year; and

 

(iii)                               shall be prepared in accordance with Accounting Principles.

 

(c)                                  If after the date of this Agreement a change in the Accounting Principles (as at the date of this Agreement) or the accounting practices is such as to affect:

 

(A)                               the determination of the financial covenants contained in clause 25 (Financial covenants); and/or

 

(B)                               the determination of compliance with clause 26.33 (Guarantors) and/or clause 30.4(a) (Additional Guarantors); and/or

 

(C)                               the Margin,

 

the Company and the Agent shall, at the Agent’s request, negotiate in good faith with a view to agreeing such amendments as may be necessary to grant to the Lenders

 

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protection comparable to that granted on the date of this Agreement, and any amendments so agreed will take effect on the date agreed between the Company and the Agent; and if no such agreement is reached within 30 days of the Agent’s request, the Agent and the Company shall instruct independent accountants (and if the Agent and the Company cannot agree the identity of the independent accountant such independent accountant as the chair of the law society directs) to determine any amendments to those clauses or definitions which those accountants (acting as experts and not as arbitrators) consider appropriate to grant to the Lenders protection comparable to that granted on the date of this Agreement, which amendments shall take effect when so determined and notified to the Company. Any amendments determined by such accountants shall be binding on all the Parties.

 

(d)                                 If at any time a Default is continuing the Agent wishes to discuss the financial position of any member of the Group with the auditors, the Agent may notify the Company, stating the questions or issues which the Agent wishes to discuss with the auditors.  In this event, the Company must ensure that the auditors are authorised (at the expense of the Company):

 

(i)                                     to discuss the financial position of each member of the Group with the Agent on request from the Agent; and

 

(ii)                                  to disclose to the Agent for the Finance Parties any information which the Agent may reasonably request.

 

24.4                        Budget

 

(a)                                 The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as the same become available but in any event before the start of each of its Financial Years, an annual Budget for that Financial Year.

 

(b)                                 The Company shall ensure that each Budget:

 

(i)                                     is in a form acceptable to the Agent and includes:

 

(A)                               a projected consolidated profit and loss, balance sheet and cashflow statement for each principal division of the Group; and

 

(B)                               projected financial covenant calculations for that Financial Year;

 

(ii)                                  is prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under clause 24.1; and

 

(iii)                               has been approved by the board of directors of the Company.

 

24.5                       Year-end

 

The Company shall procure that each Financial Year-end of each member of the Group falls on 31 December save where otherwise required by law in any Relevant Jurisdiction.

 

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24.6                        Information: miscellaneous

 

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

 

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

 

(b)                                 promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which, if adversely determined, would involve a liability, or a potential or alleged liability, exceeding £1,000,000 (or its equivalent in other currencies);

 

(c)                                  not used;

 

(d)                                 promptly on the reasonable request of the Agent, such further information regarding the financial condition, assets and operations of the Group and/or any member of the Group (including any requested amplification or explanation of any item in the financial statements, Budget or other material provided by any Obligor under this Agreement; and

 

(e)                                  any changes to the main board or the executive board of the Company and an up to date copy of its register of members (or equivalent in its jurisdiction of incorporation)) as any Finance Party through the Agent may reasonably request (provided that the Agent shall not request a copy of its register of members more frequently than twice in any Financial Year unless the Agent requires the register of members for know your customer requirements and/or if the Agent suspects that there has been a Change of Control).

 

24.7                        Notification of default

 

(a)                                 Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless such a notification has already been provided by another Obligor).

 

(b)                                 If the Agent reasonably suspects that a Default is continuing promptly upon a request by the Agent, the Company shall supply to the Agent a certificate signed by two of its directors 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).

 

24.8                        “Know your customer” checks

 

(a)                                 If:

 

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

 

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

 

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

 

obliges the Agent or any Lender (or, in the case of clause 24.8(a)(iii), any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent, such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

(b)                                 Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied with the results of all necessary “know your customer” or other checks on Lenders or prospective new Lenders pursuant to the transactions contemplated in the Finance Documents.

 

(c)                                  The Company shall, by not less than ten Business Days prior written notice to the Agent, notify the Agent (who shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to clause 30 (Changes to the Obligors).

 

(d)                                 Following the giving of any notice pursuant to clause 24.8(c), if the accession of such Additional Obligor obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other checks in relation to any relevant person pursuant to such Subsidiary becoming an Additional Obligor.

 

24.9                        ERISA

 

(a)                                 Each Obligor will:

 

(i)                                     promptly upon a request by the Lender, deliver to the Lender copies of the Annual  Report (IRS form 5500 Series) together with all schedules and documentation reasonably requested by the Agent with respect to each Employee Plan; and

 

(ii)                                  within 21 Business Days after it or any ERISA Affiliate becomes aware that any ERISA Event has occurred or, in the case of any ERISA Event which requires advance notice under section 4043(b) of ERISA, will occur, deliver to the Lender a statement signed by a director, member or officer of the Obligor or ERISA Affiliate describing that ERISA Event and the action, if any, taken or proposed to be taken with respect to that ERISA Event.

 

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25                                  Financial covenants

 

25.1                        Financial definitions

 

In this Agreement:

 

Adjusted EBITDA means in respect of any Relevant Period, EBITDA for that Relevant Period after:

 

(a)                                 adding the amount of any cash receipts (and deducting the amount of any cash payments) during that Relevant Period in respect of any Exceptional Items not already taken account of in calculating EBITDA for any Relevant Period  but excluding:

 

(i)                                     Exceptional Items relating to cash receipts or cash paid for finance costs or discontinued operations

 

(ii)                                  cash payments for Permitted Acquisitions and cash received for Permitted Disposals

 

(b)                                 adding the amount of any increase in provisions, which are not Current Assets or Current Liabilities and deducting the amount of any non-cash credits which are not Current Assets or Current Liabilities) in each case to the extent taken into account in establishing EBITDA

 

(c)                                  deducting the cash amount of maintenance capital expenditure actually paid (which shall be not more than £8,000,000 (or its equivalent in any currency)) during that Relevant Period by any member of the Group except (in each case) to the extent funded from the proceeds of Permitted Disposals, third party grants, third party contributions or Insurance Proceeds) and

 

(d)                                 deducting the amount of any cash dividends or distributions paid or made by the Company in respect of that Relevant Period

 

and so that no amount shall be added (or deducted) more than once

 

Average Exchange Rate means the 12 month average of the month end exchange rates as referenced to Reuters

 

Current Assets means the aggregate (on a consolidated basis) of all inventory, work in progress, trade and other receivables of each member of the Group including prepayments in relation to operating items and sundry debtors (but excluding cash and Cash Equivalent Investments) maturing within 12 Months from the date of computation but excluding amounts in respect of:

 

(a)                                 receivables in relation to corporation and deferred Tax

 

(b)                                 Exceptional Items and other non-operating items

 

(c)                                  insurance claims and

 

(d)                                 any interest owing to any member of the Group

 

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Current Liabilities means the aggregate (on a consolidated basis) of all liabilities (including trade creditors, accruals and provisions) of each member of the Group falling due within 12 Months from the date of computation but excluding amounts in respect of:

 

(a)                                 liabilities for Financial Indebtedness and Finance Charges

 

(b)                                 liabilities for corporation and deferred Tax

 

(c)                                  Exceptional Items and other non-operating items

 

(d)                                 insurance claims and

 

(e)                                  liabilities in relation to dividends declared but not paid by the Company or by a member of the Group in favour of a person which is not a member of the Group

 

Debt Service means in respect of any Relevant Period the aggregate of:

 

(a)                                 Net Finance Charges for that Relevant Period

 

(b)                                 the net amount of any cash receipts during that Relevant Period in respect of any corporation tax rebates or credits and the amount actually paid or due and payable in respect of corporation taxes during that Relevant Period by any member of the Group

 

(c)                                  the aggregate of all scheduled repayments of Financial Indebtedness falling due during that Relevant Period but excluding

 

(i)                                     any amounts repaid or falling due under any overdraft or revolving facility (including, without limitation, the Facility and any Ancillary Facility) and which were available for simultaneous redrawing according to the terms of that facility

 

(ii)                                  any such obligations owed to any member of the Group

 

(iii)                               any prepayment of Financial Indebtedness existing on the Closing Date which is required to be repaid under the terms of this Agreement and

 

(d)                                 the amount of the capital element of any payments in respect of that Relevant Period payable under any Finance Lease entered into by any member of the Group

 

and so that no amount shall be included more than once

 

Debt Service Cover means the ratio of Adjusted EBITDA to Debt Service in respect of any Relevant Period

 

EBIT means in respect of any Relevant Period the consolidated operating profit of the Company before taxation (excluding the results from discontinued operations):

 

(a)                                 before deducting any interest, commission, fees, discounts, prepayment fees, premiums or charges, gains or losses on Financial Indebtedness and other finance payments whether paid, payable or capitalised by any member of the Group (calculated on a consolidated basis) in respect of that Relevant Period

 

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

 

(c)                                  before taking into account any Exceptional Items

 

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(d)                                 before deducting any Transaction Costs

 

(e)                                  before taking into account any gain or loss arising from an upward or downward revaluation of any other asset except for the impairment of working capital items

 

(f)                                   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;

 

(g)                                  before taking into account any unrealised gains or losses on any derivative instrument (other than any derivative instrument which is accounted for on a hedge accounting basis)

 

(h)                                 before taking into account any Pension Payment to the extent made after the date of this Agreement but before the first anniversary of the date of this Agreement and

 

(i)                                     excluding any profit or loss arising from the disposal of fixed assets

 

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

 

EBITA means in respect of any Relevant Period, EBIT for that Relevant Period after adding back any amount attributable to the impairment or amortisation of assets or impairment of members of the Group and non-cash based charges and amortisation costs associated with equity stock-based compensation schemes for that Relevant Period

 

EBITDA means in respect of any Relevant Period, EBITA for that Relevant Period after adding back any amount attributable to the depreciation of assets of members of the Group for that Relevant Period

 

Exceptional Items means any exceptional, one-off or non-recurring items which represent gains or losses including (without limitation) those arising on:

 

(a)                                 the restructuring of the activities of an entity, including the associated redundancy programme costs and reversals of any provisions for the cost of restructuring

 

(b)                                 disposals, revaluations or impairment of non-current assets

 

(c)                                  disposals of assets associated with discontinued operations  and acquisition costs  in relation to the acquisition of new operations

 

(d)                                 Environmental remediation costs and provisions — not in the ordinary course of business

 

(e)                                  one-off gains and losses recognised on the early termination, curtailment or change in employee retirement defined benefits

 

(f)                                   disposal of a business operation whereby this is not classified as a discontinued operation for accounting purposes

 

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

 

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(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 commission, fees, discounts and other finance payments payable by (and deducting any such amounts payable to) any member of the Group under any interest rate hedging arrangement

 

(d)                                 taking no account of any unrealised gains or losses on any financial instruments other than any derivative investments which are accounted for on a hedge accounting basis

 

(e)                                  excluding any Transaction Costs and

 

(f)                                   excluding any interest cost or expected return on plan assets in relation to any post employment benefit schemes

 

so that no amount shall be added (or deducted) more than once

 

Financial Quarter means a 3 calendar months period ending on 31 March, 30 June, 30 September or 31 December in any Financial Year

 

Financial Year means a financial year of the Company

 

Interest Cover means the ratio of EBITDA to Net Finance Charges in respect of any Relevant Period

 

Leverage means in respect of any Relevant Period the ratio of Total Net Debt on the last day of that Relevant Period to EBITDA in respect of that Relevant Period

 

Net Finance Charges means, for any Relevant Period, the Finance Charges for that Relevant Period after deducting any interest payable in that Relevant Period to any member of the Group on any cash or Cash Equivalent investment

 

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

 

Pension Items means any income or charge attributable to an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993) other than the current service costs and any past service costs and curtailments and settlements attributable to the scheme

 

Pension Payment means a payment of up to £5,000,000 as set out in the Base Case Model

 

Relevant Period means:

 

(a)                                 in respect of Leverage and Interest Cover each 12 Month period ending on the most recent Quarter Date ending on or after 30 September 2011 and

 

(b)                                 in respect of Debt Service Cover, prior to 30 June 2012, the period commencing on the Closing Date and ending on the most recent Quarter Date ending on or after 30 September 2011 and after such period each 12 Month period ending on the most recent Quarter Date

 

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Relevant Proceeds means Disposal Proceeds or Insurance Proceeds (each as defined in clause 11 (Mandatory prepayment)

 

Total Debt means at any time the aggregate amount of all obligations of members of the Group for or in respect of Financial Indebtedness at that time but:

 

(a)                                 excluding any such obligations to any other member of the Group

 

(b)                                 including in the case of Finance Leases only their capitalised value

 

(c)                                  excluding unrealised  gains and losses on Treasury Transactions (including currency exchange gains and losses)

 

(d)                                 excluding any obligations in respect of performance bonds issued in the ordinary course of trading in respect of non-financial obligations to the extent such performance bonds are not called or enforced

 

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

 

Total Net Debt means Total Debt less the aggregate amount of cash and Cash Equivalent Investments held by an Obligor at that time and so that no amount shall be included or excluded more than once

 

Working Capital means on any date Current Assets less Current Liabilities

 

25.2                        Financial Condition

 

The Company shall ensure that:

 

(a)                                 Debt Service Cover: Debt Service Cover in respect of any Relevant Period specified in column 1 below shall not be less than the ratio set out in column 2 below opposite that Relevant Period:

 

	
Column 1
    Relevant Period
    	
 
    	
Column 2
    Ratio
    
	
 
    	
 
    	
 
    
	
Relevant Period ending 30 September 2011
    	
 
    	
1.25:1
    
	
 
    	
 
    	
 
    
	
Relevant Period ending 31 December 2011
    	
 
    	
1.25:1
    
	
 
    	
 
    	
 
    
	
Thereafter each Relevant Period ending on a   Quarter Date
    	
 
    	
1.25:1
    

 

(b)                                 Interest Cover:  Interest Cover in respect of any Relevant Period shall not be less than 4.0:1.

 

(c)                                  Leverage: Leverage in respect of any Relevant Period shall not exceed 3.0:1.

 

(d)                                 Capital expenditure: The aggregate capital expenditure of the Group in respect of any Financial Year shall not exceed 110% of budgeted capital expenditure for that Financial Year as set out in the Budget for that Financial Year.

 

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25.3                        Financial testing

 

(a)                                 The financial covenants set out in clause 25.2 shall be calculated in accordance with the Accounting Principles and tested by reference to:

 

(i)                                     the Annual Financial Statements; and

 

(ii)                                  the Quarterly Financial Statements for the Relevant Period.

 

(b)                                 If in respect of any period there is a discrepancy between the information set out in the Quarterly Financial Statements for such period and that set out in the Annual Financial Statements for such period, the information in the Annual Financial Statements shall prevail.

 

(c)                                  In respect of any Relevant Period, the exchange rate used to calculate Total Net Debt shall be the Average Exchange Rate for that Relevant Period.

 

26                                  General undertakings

 

The undertakings in this clause 26 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.

 

26.1                        Authorisations

 

Each Obligor shall promptly:

 

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

 

(b)                                 supply certified copies to the Agent of,

 

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

 

(i)                                     enable it to perform its obligations under the Finance Documents;

 

(ii)                                  ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and

 

(iii)                               carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

26.2                        Compliance with laws

 

Each Obligor shall (and the Company shall ensure that each member of the Group will) comply in all respects with all laws to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

26.3                        Environmental compliance

 

Each Obligor shall (and the Company shall ensure that each member of the Group will):

 

(a)                                 comply with all Environmental Law;

 

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

 

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(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 Adverse Effect.

 

26.4                        Environmental claims

 

Each Obligor shall (and the Company shall ensure that each member of the Group will) promptly upon becoming aware of the same, inform the 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 the claim, if determined against that member of the Group, has or is reasonably likely to have a Material Adverse Effect.

 

26.5                        Taxation

 

(a)                                 Each Obligor shall pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

(i)                                     such payment is being contested in good faith;

 

(ii)                                  adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the Agent under clause 24.1 (Financial statements); and

 

(iii)                               such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

(b)                                 No Obligor may change its residence for Tax purposes.

 

26.6                        Merger

 

No Obligor shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction without the prior written consent of the Agent (acting on the instructions of the Majority Lenders (such consent not to be unreasonably withheld or delayed)).

 

26.7                        Change of business

 

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

 

26.8                       Acquisitions

 

(a)                                 No Obligor shall (and the Company shall ensure that no other member of the Group will):

 

(i)                                     acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them); or

 

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(ii)                                  incorporate a company.

 

(b)                                 Clause 26.8(a) does not apply to an acquisition of a company, of shares, securities or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company which is a Permitted Acquisition.

 

26.9                        Joint ventures

 

No Obligor shall (and the Company shall ensure that no member of the Group will):

 

(a)                                 enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

 

(b)                                 transfer any assets or lend to or guarantee or give an indemnity for or give Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

 

Clause 26.9(a) and (b) above does not apply to any Joint Venture with is a Permitted Joint Venture.

 

26.10                 Preservation of Assets

 

Each Obligor shall maintain in good working order and condition (ordinary wear and tear excepted) all of its assets necessary in the conduct of its business.

 

26.11                 Pari passu ranking

 

Each Obligor shall (and the Company shall ensure that each member of the Group will) ensure that at all times any unsecured and unsubordinated claims of a Finance Party or Hedge Counterparty against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

26.12                 Negative pledge

 

In this Agreement, Quasi-Security means an arrangement or transaction described in clause 26.12(b).

 

(a)                                 No Obligor shall (and the Company shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

 

(b)                                 No Obligor shall (and the Company 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 an Obligor or any other member of the Group;

 

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

 

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

 

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

 

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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)                                  Clauses 26.12(a) and 26.12(b) do not apply to any Security or (as the case may be) Quasi-Security, which is Permitted Security.

 

26.13                 Disposals

 

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

 

(b)                                 Clause 26.13(a) above does not apply to any sale, lease, transfer or other disposal which is:

 

(i)                                     a Permitted Disposal; or

 

(ii)                                  a Permitted Transaction.

 

26.14                 Arm’s length basis

 

(a)                                 No Obligor shall (and the Company shall ensure no member of the Group will) enter into any transaction with any person except on arm’s length terms and for full market value.

 

(b)                                 Clause 26.14(a) does not apply to:

 

(i)                                     intra-Group loans permitted under clause 26.15;

 

(ii)                                  fees, costs and expenses payable under the Transaction Documents in the amounts set out in the Transaction Documents delivered to the Agent under clause 4.1 (Initial conditions precedent) or agreed by the Agent;

 

(iii)                               any Permitted Transaction; or

 

(iv)                              the sale and/or licensing by Revere Graphics Worldwide of certain Intellectual Property for a nominal amount to a third party as approved by the Federal Trade Commission in the US as set out in the Information Memorandum.

 

26.15                 Loans or credit

 

(a)                                 No Obligor shall (and the Company shall ensure that no member of the Group will) be a creditor in respect of any Financial Indebtedness.

 

(b)                                 Clause 26.15(a) does not apply to a Permitted Loan.

 

26.16                 No Guarantees or indemnities

 

(a)                                 No Obligor shall (and the Company shall ensure that no member of the Group will) incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

 

(b)                                 Clause 26.16(a) does not apply to a Permitted Guarantee.

 

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26.17                 Dividends and share redemption

 

(a)                                 Except as permitted under the Intercreditor Deed, the Company shall not (and the Company shall ensure that no member of the Group will):

 

(i)                                     declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

 

(ii)                                  repay or distribute any dividend or share premium reserve;

 

(iii)                               pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Company; or

 

(iv)                              redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so.

 

(b)                                 Clause 26.17(a) does not apply to a Permitted Distribution.

 

26.18                 Notes

 

Except as permitted under the Intercreditor Deed, the Company shall not (and will ensure that no other member of the Group will):

 

(a)                                 repay or prepay any principal amount (or capitalised interest) outstanding under the Notes;

 

(b)                                 pay any interest, fee or charge accrued or due under the Note Documents; or

 

(c)                                  purchase, redeem, defease or discharge any of the loan notes outstanding under the Notes.

 

26.19                 Financial Indebtedness

 

(a)                                 No Obligor shall (and the Company shall ensure that no member of the Group will) incur or allow to remain outstanding any Financial Indebtedness.

 

(b)                                 Clause 26.19(a) does not apply to Permitted Financial Indebtedness.

 

26.20                 Share capital

 

(a)                                 No Obligor shall (and the Company shall ensure no member of the Group will) issue any shares.

 

(b)                                 Clause 26.20(a) does not apply to a Permitted Share Issue.

 

26.21                 Insurance

 

(a)                                 Each Obligor shall effect and maintain, in a form and amount such insurance on and in respect of its business and its assets as a prudent company carrying on the same or substantially similar business as such Obligor would effect.

 

(b)                                 The Company shall within 10 Business Days of each anniversary of the date of this Agreement provide to the Agent either:

 

96

 

(i)                                     copies of each insurance policy in which that Obligor has an interest; or

 

(ii)                                  a letter from an insurance broker confirming the requirements of clause 26.21(a) are being compiled with.

 

26.22                 Pensions

 

(a)                                 The Company shall ensure that all pension schemes operated by or maintained for the benefit of members of the Group and/or any of its employees are funded in accordance with the statutory funding objective under sections 221 and 222 of the Pensions Act 2004 and that no action or omission is taken by any member of the Group in relation to such a pension scheme which has or is reasonably likely to have a Material Adverse Effect (including, without limitation, the termination or commencement of winding-up proceedings of any such pension scheme or any member of the Group ceasing to employ any member of such a pension scheme).

 

(b)                                 Except for the Defined Benefit Schemes, the Company shall ensure that no member of the Group is or has been at any time an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pension Schemes Act 1993) or connected with or an associate of (as those terms are used in sections 38 or 43 of the Pensions Act 2004) such an employer.

 

(c)                                  If requested, the Company shall deliver to the Agent at such times as those reports are prepared in order to comply with the then current statutory or auditing requirements (as applicable either to the trustees of any relevant schemes or to the Company), the actuarial reports in relation to all pension schemes mentioned in clause 26.22(a).

 

(d)                                 The Company shall promptly notify the Agent of any material change in the rate of contributions to any pension schemes mentioned in clause 26.22(a) above paid or recommended to be paid (whether by the scheme actuary or otherwise) or required (by law or otherwise).

 

(e)                                  Each Obligor shall as soon as it becomes aware of it immediately notify the Agent of any investigation or proposed investigation by the Pensions Regulator which may lead to the issue of a Financial Support Direction or a Contribution Notice to any member of the Group.

 

(f)                                   Each Obligor shall immediately notify the Agent if it receives a Financial Support Direction or a Contribution Notice from the Pensions Regulator.

 

26.23                 Access

 

If a Default is continuing each Obligor shall (and the Company shall ensure that each member of the Group will) (not more than once in every Financial Year unless the Agent reasonably suspects a Default is continuing or may occur) permit the Agent and/or accountants or other professional advisers and contractors of the Agent free access at all reasonable times and on reasonable notice at the risk and cost of the Obligor or the Company to:

 

(a)                                 the premises, assets, books, accounts and records of each member of the Group; and

 

(b)                                 meet and discuss matters with the directors.

 

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26.24                 Intellectual Property

 

Each Obligor shall:

 

(a)                                 preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Obligor;

 

(b)                                 use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property;

 

(c)                                  make registrations and pay all registration fees and Taxes necessary to maintain the Intellectual Property that the relevant Obligor is required to maintain under clause 26.24(a) above in full force and effect and record its interest in that Intellectual Property;

 

(d)                                 not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any Obligor to use such property; and

 

(e)                                  not discontinue the use of the Intellectual Property,

 

where failure to do so, in the case of clause 26.24(a) and clause 26.24(b) or, in the case of clause 26.24(d) and clause 26.24(e), such use, permission to use, omission or discontinuation is reasonably likely to have a Material Adverse Effect.

 

26.25                 Transaction Documents

 

(a)                                 No Obligor shall amend, vary, novate, supplement, supersede, waive or terminate any term of a Transaction Document or any other document delivered to the Agent pursuant to clause 4.1 (Initial conditions precedent) or clause 30 (Changes to the Obligors) or enter into any agreement with any shareholders of the Company or any of their Affiliates which is not a member of the Group except in writing:

 

(i)                                   in accordance with the provisions of clause 40 (Amendments and waivers);

 

(ii)                                to the extent that that amendment, variation, novation, supplement, superseding, waiver or termination is permitted by the Intercreditor Deed;

 

(iii)                             prior to or on the Closing Date, with the prior written consent of the Original Lenders; or

 

(iv)                            after the Closing Date, in a way which:

 

(A)                             could not be reasonably expected materially and adversely to affect the interests of the Lenders; and

 

(B)                             would not change the date, amount or method of payment of interest or principal on the Notes.

 

(b)                                 The Company shall promptly supply to the Agent a copy of any document relating to any of the matters referred to in clause 26.25(a)(i) to 26.25(a)(iv) above.

 

(c)                                  Each Obligor shall (and the Company shall ensure that each member of the Group will) comply with the material terms of all Transaction Documents to which it is party.

 

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26.26                 Financial assistance

 

Any Obligor which is incorporated in any jurisdiction other than England and Wales shall comply with any law or regulation on financial assistance or its equivalent in that jurisdiction.

 

26.27                 Group bank accounts

 

Each Obligor shall, where in the reasonable opinion of the Company it is commercially reasonable to do so, ensure that within 3 months of the Closing Date all its bank accounts in the United Kingdom or the US (other than Excluded Deposit Accounts) shall be opened and maintained with banks or financial institutions that are Acceptable Banks from time to time.

 

26.28                 Treasury transactions

 

No Obligor shall (and the Company will ensure that no member of the Group will) enter into any Treasury Transaction, other than:

 

(a)                                 the hedging transactions contemplated by the Hedging Letter and documented by the Hedging Agreements;

 

(b)                                 spot and forward delivery foreign exchange contracts entered into in the ordinary course of business and not for speculative purposes; and

 

(c)                                  any Treasury Transaction entered into for the hedging of actual or projected real exposures arising in the ordinary course of trading activities of a member of the Group and not for speculative purposes.

 

26.29                 Compliance with Hedging Letter

 

The Company shall ensure that all exchange rate and interest rate hedging arrangements required by the Hedging Letter are implemented in accordance with the terms of the Hedging Letter and that such arrangements are not terminated, varied or cancelled without the prior written consent of the Agent save as permitted by the terms of the Intercreditor Deed.

 

26.30                 Repatriation of Cash

 

The Company shall procure that on the last day of each Interest Period all cash within the Group (other than the Permitted Cash Balance) shall be in bank accounts of the Obligors

 

26.31                 Auditors

 

The Company shall ensure that the auditors of each member of the Group are Auditors.

 

26.32                 Further assurance

 

The Obligors shall, promptly upon the request of the Agent, file or record, as applicable, all termination statements and lien releases and take such other actions as may be necessary to discharge all mortgages, deeds of trust and security interests granted by members of the Group in respect of (a) the ABL Facility (following repayment of the ABL Facility as contemplated hereunder) and (b) any other security over assets of any Obligor other than Permitted Security.

 

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26.33                 Guarantors

 

(a)                                 The Company shall ensure that at all times after the date of this Agreement the aggregate:

 

(i)                                   earnings before interest, tax and amortisation (calculated on the same basis as EBITA) of the Guarantors (calculated on an unconsolidated basis and excluding all unrealised intra-Group profits of any member of the Group) exceeds 75% of EBITA of the Group; and

 

(ii)                                gross assets of the Guarantors (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the consolidated gross assets of the Group.

 

(b)                                 The Company need only perform its obligations under clause 26.33(a) if it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s directors or other management.  Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability.  This includes agreeing to a limit on the amount guaranteed.  The Agent may (but shall not be obliged to) agree to such a limit if, in its opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

(c)                                  Not used.

 

26.34                 Anti-Terrorism  Laws

 

Each Obligor agrees to the extent applicable to each Obligor:

 

(a)                                 to comply with all Anti-Terrorism Laws;

 

(b)                                 immediately to notify the Agent if it obtains knowledge that it or any of its Affiliates has become or been listed as a Designated Person or has been charged with or has engaged in any violation of any Anti-Terrorism Law;

 

(c)                                  to exclude any funds derived from any Designated Person or from any person or entity involved in the violation of any Anti-Terrorism Law from being used to pay debt service or any other amounts owing under the Finance Documents;

 

(d)                                 except for transfers of stock of any publicly traded Obligor or Affiliate effected on a stock exchange, not to transfer or permit the transfer of any legal or beneficial ownership interest of any kind in such Obligor or any Affiliate of such Obligor to a Designated Person or any person or entity that such Obligor has to its best knowledge (based upon reasonable inquiry by such Obligor) been involved in the violation of any Anti-Terrorism Law;

 

(e)                                  not to acquire, directly or indirectly, ownership interest of any kind in any Designated Person or any person or entity that such Obligor has, to its best knowledge (based upon reasonable inquiry by such Obligor) been involved in the violation of any Anti-Terrorism Law, not to form any partnership or joint venture with any such person and not to act, directly or indirectly, as the agent or representative of any such person; and

 

100

 

(f)                                   to indemnify the Lenders for any costs incurred by any of them as a result of any violation of an Anti-Terrorism Law by any Obligor or any Affiliate of any Obligor.

 

26.35                 ERISA

 

Each Obligor shall:

 

(a)                                 ensure that neither it nor any ERISA Affiliate engages in a complete or partial withdrawal, within the meaning of sections 4203 and 4205 of ERISA, from any Multiemployer Plan without the prior consent of the Agent;

 

(b)                                 ensure that any material liability imposed on it or any ERISA Affiliate pursuant to Title IV of ERISA is paid and discharged when due;

 

(c)                                  ensure that neither it nor any ERISA Affiliate adopts an amendment to an Employee Plan requiring the provision of Security under ERISA or the Internal Revenue Code without the prior consent of the Lender; and

 

(d)                                 ensure that no Employee Plan is terminated under section 4041 of ERISA

 

26.36                 Margin  Regulation

 

(a)                                 Each Obligor shall (and the Company shall ensure that each Obligor shall) use the proceeds of the Loans without violating Regulation T, U or X or any other applicable US federal or state laws or regulations.

 

(b)                                 If requested by the Agent, each Obligor shall furnish to the Agent a statement in conformity with the requirements of FR Form U-1 referred to in Regulation U.

 

26.37                 US  Regulation

 

Each Obligor shall ensure that it will not, by act or omission, become subject to any of the categories, laws or regulations described in clause 23.31(c)  (Other US Regulation).

 

26.38                 Conditions Subsequent

 

(a)                                 Each US Obligor shall submit the required notification and documentation to close all its bank accounts in England and Wales on or prior to the date falling 3 Business Days after the Closing Date.

 

(b)                                 On or before the date 60 days after the Closing Date, the Company shall provide to the Agent evidence that the Security in respect of the ABL Facility has been released and all necessary forms MG02 have been filed at Companies House.

 

(c)                                  The Company shall procure that each of LGL 1996 Limited and Biggleswick Limited are liquidated in accordance with limb (b) of the definition of Permitted Transaction before the first anniversary of this Agreement.

 

27                                 Events of Default

 

Each of the events or circumstances set out in this clause 27 (other than clause 27.20) is an Event of Default.

 

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27.1                        Non-payment

 

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

 

(a)                                 its failure to pay is caused by:

 

(i)                                   an administrative or technical error; or

 

(ii)                                a Disruption Event; and

 

(b)                                 payment is made within 3 Business Days of its due date.

 

27.2                        Financial covenants and other obligations

 

(a)                                 Any requirement of clause 25 (Financial covenants) is not satisfied.

 

(b)                                 An Obligor does not comply with any Material Provision.

 

(c)                                  Not used.

 

27.3                        Other obligations

 

(a)                                 An Obligor does not comply with any provision of the Finance Documents (other than those referred to in clause 27.1 and clause 27.2.

 

(b)                                 No Event of Default under clause 27.3(a) will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of:

 

(i)                                   the Agent giving notice to the Company or relevant Obligor; and

 

(ii)                                the Company or the relevant Obligor becoming aware of the failure to comply.

 

27.4                        Misrepresentation

 

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

 

(b)                                 No Event of Default under clause 27.4(a) will occur if:

 

(i)                                   the event or circumstance causing the representation or statement to be incorrect or misleading is capable of remedy; and

 

(ii)                                such Obligor shall have remedied such event or circumstance within 15 Business Days after the earlier of:

 

(A)                             the relevant Obligor becoming aware of such incorrect or misleading representation or statement; and

 

(B)                             receipt by the relevant Obligor of written notice from the Agent to such Obligor requiring the event or circumstance to be remedied.

 

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27.5                        Cross default

 

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

 

(b)                                 Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

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

 

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

 

(e)                                  No Event of Default will occur under this clause 27.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within clause 27.5(a) to 27.5(d) (inclusive) is less than £2,500,000 (or its equivalent in any other currency or currencies).

 

27.6                        Insolvency

 

(a)                                 A member of the Group is unable or admits inability to pay its debts as they fall due, suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

(b)                                 A moratorium is declared in respect of any indebtedness of any member of the Group.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

 

27.7                        Insolvency proceedings

 

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

 

(i)                                   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 any member of the Group;

 

(ii)                                a composition, compromise, assignment or arrangement with any creditor of any member of the Group other than as permitted under paragraph (b) of the definition of Permitted Transaction;

 

(iii)                             the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any member of the Group or any of its assets; or

 

(iv)                            enforcement of any Security over any assets of any member of the Group,

 

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

 

(b)                                 Any of the following occurs in respect of a US Obligor:

 

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(i)                                   it makes a general assignment for the benefit of creditors;

 

(ii)                                it commences a voluntary case or proceeding under any US Bankruptcy Law;

 

(iii)                             an involuntary proceeding under any US Bankruptcy Law is commenced against it and is not challenged by appropriate means within thirty (30) days and is not dismissed or stayed within ninety (90) days after commencement of such case; or

 

(iv)                            a custodian, conservator, receiver, liquidator, assignee, trustee, sequestrator or other similar official is appointed under any US Bankruptcy Law for, or takes charge of, all or a substantial part of the property of a US Obligor

 

(c)                                  Clause 27.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement.

 

27.8                        Creditors’ process

 

Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of a member of the Group having an aggregate value of £1,500,000 (or its equivalent in any currency) and is not discharged within 21 days of the commencement of such process.

 

27.9                        Unlawfulness and invalidity

 

(a)                                 It is or becomes unlawful for an Obligor, or any other member of the Group that is a party to the Intercreditor Deed, to perform any of its obligations under the Finance Documents or any subordination created under the Intercreditor Deed is or becomes unlawful.

 

(b)                                 Any obligation or obligations of any Obligor under any Finance Documents or any other member of the Group under the Intercreditor Deed are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

 

(c)                                  Any Finance Document ceases to be in full force and effect or any subordination created under the Intercreditor Deed, ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

 

27.10                 Intercreditor Deed

 

(a)                                 Any party to the Intercreditor Deed (other than a Finance Party or an Obligor) fails to comply with the provisions of, or does not perform its obligations under, the Intercreditor Deed; or

 

(b)                                 a representation or warranty given by that party in the Intercreditor Deed is incorrect in any material respect,

 

and, if the non-compliance or circumstances giving rise to the misrepresentation or breach of warranty are capable of remedy, it is not remedied within 10 Business Days of the earlier of the Agent giving notice to that party or that party becoming aware of the non-compliance, misrepresentation or breach of warranty.

 

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27.11                 Cessation of business

 

Any member of the Group suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business where such suspension or cessation is reasonably likely to have a Material Adverse Effect.

 

27.12                 Change of ownership

 

After the Closing Date, an Obligor (other than the Company) ceases to be a wholly-owned Subsidiary of the Company.

 

27.13                 Audit qualification

 

The Auditors of the Group qualify the Annual Financial Statements of the Company in an adverse manner which the Agent (acting reasonably) considers material.

 

27.14                 Expropriation

 

The authority or ability of any Obligor to conduct its business is materially limited or wholly or substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in relation to any Obligor or any of its assets.

 

27.15                 Repudiation and rescission of agreements

 

(a)                                 An Obligor (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a Finance Document.

 

(b)                                 Any party to the Intercreditor Deed rescinds or purports to rescind or repudiates or purports to repudiate any of those agreements or instruments in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a material adverse effect on the interests of the Lenders under the Finance Documents.

 

27.16                 Litigation

 

Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Transaction Documents or the transactions contemplated in the Transaction Documents or against any member of the Group or its assets which results in a liability to such member of the Group (whether actual or contingent) in an aggregate amount in excess of £5,000,000 (excluding any proceedings in respect of which (a) the insurers of the Group have confirmed in writing to the Agent that the liability is fully covered by insurance and (b) such insurers are not disputing liability) (or its equivalent in any currency) and where a grace period is provided for that liability is not discharged in full within any required period set out in the relevant judgment, settlement or agreement.

 

27.17                 Pensions

 

The Pensions Regulator issues a Financial Support Direction or a Contribution Notice to any member of the Group unless the aggregate liability of the Obligors in each Financial Year under all Financial Support Directions and Contributions Notices is less than the greater of:

 

(a)                                 £5,000,000 (or its equivalent in any currency); and

 

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(b)                                 10% of the Group’s EBITDA (by reference to the latest audited Annual Financial Statements delivered to the Agent pursuant to clause 24.1(a) (Financial statements)).

 

27.18                 Material adverse change

 

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

 

27.19                 ERISA

 

Any ERISA Event or event set forth in (a), (b) or (c) below occurs that has or could reasonably be expected to have a Material Adverse Effect:

 

(a)                                 any Obligor or ERISA Affiliate incurs a liability to or on account of a Multiemployer Plan as a result of a violation of section 515 of ERISA or under section 4201, 4204 or 4212(c) of ERISA;

 

(b)                                 with respect to each Employee Plan subject to Title IV of ERISA, such plan’s funded ratio (defined for this purpose as the actuarial value of the assets of such plan divided by the present value of all benefits accrued or earned with respect to such plan) is less than (i) 76 per cent as of 1 January 2011, and (ii) 80 per cent on the first day of any calendar year thereafter.  The calculation of such ratio shall be computed using the actuarial value, assumptions and methods used by the actuary to the Employee Plan in its most recent valuation of such plan; or

 

(c)                                  any Obligor or ERISA Affiliate incurs or is likely to incur a liability to or on account of an Employee Plan under section 409, 502(i) or 502(I) of ERISA or section 4971 or 4975 of the Internal Revenue Code other than as a result of entering into this Agreement.

 

27.20                 Acceleration

 

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

 

(a)                                 cancel the Total Commitments and/or Ancillary Commitments at which time they shall immediately be cancelled;

 

(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, at which time they shall become immediately due and payable;

 

(c)                                  declare that all or part of the Loans be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

 

(d)                                 declare all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities to be immediately due and payable, at which time they shall become immediately due and payable.

 

27.21                 Automatic Acceleration in Relation to a US Obligor

 

If an Event of Default occurs under clause 27.7(b) in relation to a US Obligor:

 

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(a)                                 the Total Commitment shall immediately be cancelled automatically, without any direction, notice, declaration or other act;

 

(b)                                 all of the Utilisations, together with accrued interest, and all other amounts accrued and outstanding under the Finance Documents shall be immediately due and payable, automatically and without any direction, notice, declaration or other act; and

 

(c)                                  each amount expressed hereunder to be payable by any US Obligor on demand shall, after that Event of Default has occurred, be immediately due and payable without the need for any demand or other claim on any US Obligor.

 

28                                  Changes to the Lenders

 

28.1                        Assignments and transfers by the Lenders

 

Subject to this clause 28 and to clause 29, a Lender (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 (New Lender).

 

28.2                        Conditions of assignment or transfer

 

(a)                                 An Existing Lender must consult with the Company for not less than 5 Business Days before it may make an assignment or transfer in accordance with clause 28.1 unless the assignment or transfer is:

 

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

 

(ii)                                if the Existing Lender is a fund, to a fund which is a Related Fund of the Existing Lender; or

 

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

 

(b)                                 An assignment will only be effective on:

 

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

 

(ii)                                  the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Deed; and

 

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

 

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(c)                                  A transfer will only be effective if the New Lender enters into the documentation required for it to accede as a party to the Intercreditor Deed and if the procedure set out in clause 28.5 is complied with.

 

(d)                                 If:

 

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

 

(ii)                                as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under clause 18 (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.

 

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

 

28.3                        Assignment or transfer fee

 

Unless the Agent otherwise agrees and excluding an assignment or transfer:

 

(a)                                 to an Affiliate of a Lender; or

 

(b)                                 to a Related Fund

 

the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of £1,500.

 

28.4                        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 Transaction Documents or any other documents;

 

(ii)                                the financial condition of any Obligor;

 

(iii)                             the performance and observance by any Obligor or any other member of the Group of its obligations under the Transaction Documents or any other documents; or

 

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

 

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and any representations or warranties implied by law are excluded.

 

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

 

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

 

(ii)                                will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities and of the risks arising under or in connection with the Finance Documents on the terms set out in clause 31.15 (Credit appraisal by the Lenders and Ancillary Lenders) 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 28; or

 

(ii)                                guarantee, indemnify or otherwise hold harmless a New Lender in respect of any cost, loss or liability directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Transaction Documents or otherwise.

 

28.5                        Procedure for transfer

 

(a)                                 Subject to the conditions set out in clause 28.2 a transfer is effected in accordance with clause 28.5(c) when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, subject to clause 28.5(b), 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.  Each Obligor and each Finance Party (other than the Existing Lender and the Agent) irrevocably authorises the Agent to execute on its behalf each duly completed Transfer Certificate delivered to the Agent and acknowledges that it will be bound by such transfer.

 

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

 

(c)                                  Subject to clause 28.10, on the Transfer Date:

 

(i)                                   to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their

 

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respective rights against one another under the Finance Documents shall be cancelled (Discharged Rights and Obligations);

 

(ii)                                each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor or other member of the Group and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

 

(iii)                             the Agent, the Arrangers, the New Lender, the other Lenders and any relevant Ancillary Lender shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights, and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arrangers and any relevant Ancillary Lender 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.

 

28.6                        Procedure for assignment

 

(a)                                 Subject to the conditions set out in clause 28.2 an assignment may be effected in accordance with clause 28.6(c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to clause 28.6(b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

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

 

(c)                                  Subject to clause 28.10, on the Transfer Date:

 

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

 

(ii)                                the Existing Lender will be released from the obligations (Relevant Obligations) 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 28.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with clause 28.5, to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in clause 28.2.

 

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28.7                        Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company

 

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

 

28.8                        Accession of Hedge Counterparties

 

Any person which becomes a party to the Intercreditor Deed as a Hedge Counterparty shall, at the same time, become a Party to this Agreement as a Hedge Counterparty in accordance with clause 16.7 (Creditor/Agent Accession Undertaking) of the Intercreditor Deed.

 

28.9                        Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this clause 28, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create a 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 Security to secure obligations to a federal reserve or central bank or to a government authority, department or agency (including HM Treasury); and

 

(b)                                 in the case of any Lender which is a fund any 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 Security shall:

 

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

 

(ii)                                require any payments to be made by an Obligor 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.

 

28.10                 Pro rata interest settlement

 

If the 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 28.6 or any assignment pursuant to clause 28.6 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 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:

 

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

 

(ii)                                the amount payable to the New Lender on that date will be the amount which would, but for the application of this clause 28.10, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

29                                  Restriction on Debt Purchase Transactions

 

29.1                        Prohibition on Debt Purchase Transactions by the Group

 

The Company shall not, and shall procure that each other member of the Group shall not, enter into any Debt Purchase Transaction or beneficially own all or any part of the share capital of a company that is a Lender or a party to a Debt Purchase Transaction of the type referred to in paragraphs (b) or (c) of the definition of Debt Purchase Transaction.

 

29.2                        Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates

 

(a)                                 For so long as a Sponsor Affiliate (i) beneficially owns a Commitment or (ii) has entered into a sub-participation agreement relating to a Commitment or other agreement or arrangement having a substantially similar economic effect and such agreement or arrangement has not been terminated:

 

(i)                                   in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents such Commitment shall be deemed to be zero; and

 

(ii)                                such Sponsor Affiliate or the person with whom it has entered into such sub-participation, other agreement or arrangement shall be deemed not to be a Lender (unless in the case of a person not being a Sponsor Affiliate it is a Lender by virtue otherwise than by beneficially owning the relevant Commitment).

 

(b)                                 Each Lender shall, unless such Debt Purchase Transaction is an assignment or transfer, promptly notify the Agent in writing if it knowingly enters into a Debt Purchase Transaction with a Sponsor Affiliate (Notifiable Debt Purchase Transaction), such notification to be substantially in the form set out in part 1 (Form of Notice on Entering into Notifiable Debt Purchase Transaction) of schedule 12.

 

(c)                                  A Lender shall promptly notify the Agent if a Notifiable Debt Purchase Transaction to which it is a party:

 

(i)                                   is terminated; or

 

(ii)                                ceases to be with a Sponsor Affiliate,

 

such notification to be substantially in the form set out in part 2 (Form of Notice on Termination of Notifiable Debt Purchase Transaction / Notifiable Debt Purchase Transaction ceasing to be with Sponsor Affiliate) of schedule 12.

 

(d)                                 Each Sponsor Affiliate that is a Lender agrees that:

 

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(i)                                   in relation to any meeting or conference call to which all the Lenders are invited to attend or participate, it shall not attend or participate in the same if so requested by the Agent or, unless the Agent otherwise agrees, be entitled to receive the agenda or any minutes of the same; and

 

(ii)                                in its capacity as Lender, unless the Agent otherwise agrees, it shall not be entitled to receive any report or other document prepared at the behest of, or on the instructions of, the Agent or one or more of the Lenders.

 

30                                  Changes to the Obligors

 

30.1                        Assignment and transfers by Obligors

 

No Obligor or any other member of the Group may assign any of its rights or transfer (or enter into any transaction or purported transaction the effect of which is to give rise to a trust in respect of) any of its rights or obligations under the Finance Documents.

 

30.2                        Additional Borrowers

 

(a)                                 Subject to compliance with the provisions of clause 24.8(c) (“Know your customer” checks) and 24.8(d) (“Know your customer” checks), the Company may request, at any time after the first Utilisation Date, in connection with any of its wholly owned Subsidiaries, which is not a Dormant Subsidiary, becomes a Borrower under the Revolving Facility.  That Subsidiary shall become a Borrower upon satisfaction of each of the following conditions:

 

(A)                             it is incorporated in the same jurisdiction as an existing Borrower and the Majority Lenders approve the addition of that Subsidiary or otherwise if all the Lenders approve the addition of that Subsidiary;

 

(B)                             the Company and that Subsidiary deliver to the Agent a duly completed and executed Accession Deed;

 

(C)                             the Subsidiary is (or becomes) a Guarantor prior to becoming a Borrower;

 

(D)                             the Company confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower and the Company confirms this; and

 

(E)                              the Agent has received all of the documents and other evidence listed in part 3 (Conditions precedent to be delivered by an Additional Obligor) of schedule 2 in relation to that Additional Borrower, each in form and substance satisfactory to the Agent.

 

(b)                                 The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in part 3 (Conditions precedent to be delivered by an Additional Obligor) of schedule 2.

 

(c)                                  Upon becoming an Additional Borrower that Subsidiary shall make any filings (and provide copies of such filings) as required by clause 17.2(j) (Tax gross-up) and clause 17.7(b) (HMRC DT Treaty Passport scheme confirmation) in accordance with those clauses.

 

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30.3                        Resignation of a Borrower

 

(a)                                 With the prior consent of all the Lenders (such consent to be provided if the Borrower is the subject of a disposal that is permitted under clause 26.13), the Company may request that such Borrower ceases to be a Borrower by delivering to the Agent a Resignation Letter.

 

(b)                                 The Agent shall accept a Resignation Letter and notify the Company and the other Finance Parties of its acceptance if:

 

(i)                                   the Company has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter;

 

(ii)                                the Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents;

 

(iii)                             where the Borrower is also a Guarantor (unless its resignation has been accepted in accordance with clause 30.5), its obligations in its capacity as Guarantor continue to be legal, valid, binding and enforceable and in full force and effect (subject to the Legal Reservations) and the amount guaranteed by it as a Guarantor is not decreased (and the Company has confirmed this is the case); and

 

(iv)                            the Company has confirmed that it shall ensure that any relevant Disposal Proceeds will be applied in accordance with clause 11.2 (Disposal and Insurance).

 

(c)                                  Upon notification by the Agent to the Company of its acceptance of the resignation of a Borrower, that Party shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents as a Borrower.

 

(d)                                 The Agent may, at the cost and expense of the Company, require a legal opinion from counsel to the Agent confirming the matters set out in clause 30.3(b)(ii) and the Agent shall be under no obligation to accept a Resignation Letter until it has obtained such opinion in form and substance satisfactory to it.

 

30.4                        Additional Guarantors

 

(a)                                 Subject to compliance with the provisions of clause 24.8 (“Know your customer” checks), the Company shall ensure that any other member of the Group which is a Material Company (other than the French Subsidiary and the Czech Subsidiary) shall within ten Business Days after becoming a Material Company, shall become an Additional Guarantor.

 

(b)                                 A member of the Group shall become an Additional Guarantor if the Agent has received all of the documents and other evidence listed in part 3 (Conditions precedent required to be delivered by an Additional Obligor) of schedule 2 in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.

 

(c)                                  The Agent shall notify the Company and the other Finance Parties promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in part 3 (Conditions precedent required to be delivered by an Additional Obligor) of schedule 2.

 

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30.5                        Resignation of a Guarantor

 

(a)                                 The Company may request that a Guarantor (other than the Company) ceases to be a Guarantor by delivering to the Agent a Resignation Letter if:

 

(i)                                   that Guarantor is being disposed of by way of a Third Party Disposal (as defined in clause 30.3) and the Company has confirmed this is the case; or

 

(ii)                                subject to clause 3.3(c)(ii) (Amendments and waivers: Senior Lenders) of the Intercreditor Deed, all the Lenders have consented to the resignation of that Guarantor.

 

(b)                                 Subject to clause 16.10 (Resignation of a Debtor) of the Intercreditor Deed, the Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance upon satisfaction of each of the following conditions:

 

(i)                                   the Company has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter;

 

(ii)                                no payment is due from the Guarantor under clause 22.1 (Guarantee and indemnity);

 

(iii)                             where the Guarantor is also a Borrower, it is under no actual or contingent obligations as a Borrower and has resigned and ceased to be a Borrower under clause 30.3; and

 

(iv)                            the Company has confirmed that it shall ensure that the relevant Disposal Proceeds will be applied, in accordance with clause 11.2 (Disposal and Insurance).

 

(c)                                  The resignation of that Guarantor shall not be effective until the date of the relevant Third Party Disposal at which time that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents as a Guarantor.

 

30.6                        Repetition of Representations

 

Delivery of an Accession Deed constitutes confirmation by the relevant Subsidiary that the representations and warranties referred to in clause 23.33(d) are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

30.7                        Not used.

 

31                                  Role of the Agent, the Arrangers and others

 

31.1                        Appointment of the Agent

 

(a)                                 Each of the Arrangers and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

(b)                                 Each of the Arrangers and the Lenders authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

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31.2                        Duties of the Agent

 

(a)                                 Subject to clause 31.2(b), the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

(b)                                 Without prejudice to clause 28.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company), clause 31.2(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 Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

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

 

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

 

(f)                                   The Agent shall maintain a register for recordation of the names, addresses (including the department or officer) if any, to whom communications are to be made or documents are to be delivered), fax numbers, electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means and the Commitments of each Lender, and agrees to provide to the Company within 5 Business Days of a request by the Company (but no more frequently than once per calendar month) or as soon as reasonably practicable upon the Agent becoming an Impaired Agent a copy of such register as at the date of that request.  The entries in the register shall be conclusive absent manifest error, and the Obligors and the Lenders may treat each Person whose name is recorded in the register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,

 

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

 

31.3                        Role of the Arrangers

 

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

 

31.4                        No fiduciary duties

 

(a)                                 Nothing in this Agreement constitutes the Agent and/or the Arrangers as a trustee or fiduciary of any other person.

 

(b)                                 None of the Agent, the Arrangers or any Ancillary Lender 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.

 

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31.5                        Business with the Group

 

The Agent, the Arrangers and each Ancillary Lender may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

31.6                        Rights and discretions

 

(a)                                 The Agent may rely on:

 

(i)                                   any representation, notice or document (including, without limitation, any notice given by a Lender pursuant to clause 29.2(b) or 29.2(c) (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates)) believed by it to be genuine, correct and appropriately authorised; and

 

(ii)                                any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

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

 

(i)                                   no Default has occurred (unless it has actual knowledge of a Default arising under clause 27.1 (Non-payment));

 

(ii)                                any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised;

 

(iii)                             any notice or request made by the Company (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors; and

 

(iv)                            no Notifiable Debt Purchase Transaction:

 

(A)                             has been entered into;

 

(B)                             has been terminated; or

 

(C)                             has ceased to be with a Sponsor Affiliate.

 

(c)                                  The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

(d)                                 The Agent may act in relation to the Finance Documents through its personnel and agents.

 

(e)                                  The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

(f)                                   Without prejudice to the generality of clause 31.6(e) above, the Agent may disclose the identity of a Defaulting Lender to the other Finance Parties and the Company shall disclose the same upon the written request of the Majority Lenders.

 

(g)                                  Notwithstanding any other provision of any Finance Document to the contrary, none of the Agent or the Arrangers is obliged to do or omit to do anything if it would or

 

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might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

(h)                                 The Agent may not disclose to any Finance Party any details of the rate notified to the Agent by any Lender for the purpose of clause 15.3(a)(ii) (Market disruption).

 

31.7                        Majority Lenders’ instructions

 

(a)                                 Unless a contrary indication appears in a Finance Document, the Agent shall:

 

(i)                                   exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent); and

 

(ii)                                not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.

 

(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 Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

 

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

 

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

 

31.8                        Responsibility for documentation

 

None of the Agent or any Arranger or any Ancillary Lender:

 

(a)                                 is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, any Arranger, an Ancillary Lender, an Obligor or any other person given in or in connection with any Finance Document, the Information Memorandum or the transactions contemplated in the Finance Documents;

 

(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.

 

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31.9                        Exclusion of liability

 

(a)                                 Without limiting clause 31.9(b) (and without prejudice to the provisions of clause 34.11(e) (Disruption to Payment Systems etc), none of the Agent or any Ancillary Lender will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for any action taken by it (or any omission by it to act) under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.

 

(b)                                 No Party (other than the Agent or an Ancillary Lender (as applicable)) may take any proceedings against any officer, employee or agent of the Agent or any Ancillary Lender, in respect of any claim it might have against the Agent or an Ancillary Lender or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Transaction Document and any officer, employee or agent of the Agent or any Ancillary Lender may rely on this clause subject to clause 1.3 (Third party rights) and the provisions of the Third Parties Act.

 

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

 

(d)                                 Nothing in this Agreement shall oblige the Agent or the Arrangers to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent and the Arrangers that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Arrangers.

 

31.10                 Lenders’ indemnity to the Agent

 

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within 3 Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to clause 34.11 (Disruption to Payment Systems etc) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

31.11                 Resignation of the Agent

 

(a)                                 The Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the Lenders and the Company.

 

(b)                                 Alternatively the Agent may resign by giving notice to the Lenders and the Company, in which case the Majority Lenders (after consultation with the Company) may appoint a successor Agent.

 

(c)                                  If the Majority Lenders have not appointed a successor Agent in accordance with clause 31.11(b) within 30 days after notice of resignation was given, the Agent (after consultation with the Company) may appoint a successor Agent (acting through an office in the United Kingdom).

 

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(d)                                 If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under clause 31.11(c), the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this clause 31 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent’s normal fee rates and those amendments will bind the Parties.

 

(e)                                  The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(f)                                   The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

(g)                                  Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this clause 31.  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.

 

(h)                                 After consultation with the Company, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with clause 31.11(b).  In this event, the Agent shall resign in accordance with clause 31.11(b).

 

(i)                                     The Agent shall resign in accordance with clause 31.11(b) (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to clause 31.11(c)) if on or after the date which is 3 months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

 

(i)                                   the Agent fails to respond to a request under clause 17.12 (FATCA Information) and a Lender reasonably believes that the 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 Agent pursuant to clause 17.12 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

(iii)                             the Agent notifies the Company and the Lenders that the 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) a Lender believes that a Party may be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.

 

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31.12                 Replacement of the Agent

 

(a)                                 After consultation with the Company, the Majority Lenders may, by giving 30 days’ notice to the Agent (or at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent by appointing a successor Agent (acting through an office in the United Kingdom).

 

(b)                                 The retiring 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 Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(c)                                  The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this clause 31.12 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

 

(d)                                 Any successor 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.

 

31.13                 Confidentiality

 

(a)                                 In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

(b)                                 If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

(c)                                  Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arrangers are obliged to disclose to any other person:

 

(i)                                   any confidential information; or

 

(ii)                                any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

 

31.14                 Relationship with the Lenders

 

(a)                                 Subject to clause 28.10 (Pro rata interest settlement), the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

(i)                                   entitled to or liable for any payment due under any Finance Document on that day; and

 

(ii)                                entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than 5 Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

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(b)                                 Each Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with schedule 4 (Mandatory Cost Formula).

 

(c)                                  Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted by clause 36.5 (Communication when Agent is Impaired Agent) 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, tax number, electronic mail address, department and officer by that Lender for the purposes of clause 36.2 (Addresses) and clause 36.6(a)(iii) (Electronic Communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

31.15                 Credit appraisal by the Lenders and Ancillary Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender and Ancillary Lender confirms to the Agent, the Arrangers and each Ancillary Lender 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 Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(d)                                 the adequacy, accuracy and/or completeness of the Information Memorandum and any other information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

 

31.16                 Base Reference Banks

 

If a Base Reference Bank (or, if a Base Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Company) appoint another Lender or an Affiliate of a Lender to replace that Base Reference Bank.

 

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31.17                 Agent’s management time

 

(a)                                 Any amount payable to the Agent under clause 19.3 (Indemnity to the Agent), clause 21 (Costs and expenses) and clause 31.10 following an Event of Default shall include the cost of utilising the Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in addition to any fee paid or payable to the Agent under clause 16 (Fees).

 

(b)                                 Any cost of utilising the Agent’s management time or other resources shall include, without limitation, any such costs in connection with clause 29.2 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates).

 

31.18                 Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent (in its capacity as such) under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

31.19                 Reliance and engagement letters

 

Each Finance Party confirms that each of the Arrangers and the Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Arrangers or the Agent) the terms of any reliance letter or engagement letters relating to any reports or letters provided in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of those reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.

 

32                                  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.

 

33                                  Sharing among the Finance Parties

 

33.1                        Payments to Finance Parties

 

If a Finance Party (Recovering Finance Party) receives or recovers any amount from an Obligor other than in accordance with clauses 16.2 (participation fee), 16.3 (Agency fee) and 34 (Payment mechanics) (a Recovered Amount) and applies that amount (or exercises any other right (including any right of set-off or combination) which it may have, in each case) to or towards the discharge of a payment due under the Finance Documents then:

 

(a)                                 the Recovering Finance Party shall, within 3 Business Days, notify details of the receipt recovery, or discharge, to the Agent;

 

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(b)                                 the Agent shall determine whether the receipt recovery or discharge is in excess of the amount the Recovering Finance Party would have been paid had the receipt recovery or discharge been received or made by the Agent and distributed in accordance with clause 34 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                  the Recovering Finance Party shall, within 3 Business Days of demand by the Agent, pay to the Agent an amount (Sharing Payment) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with clause 34.6 (partial payments).

 

33.2                        Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the Sharing Finance Parties) in accordance with clause 34.6 (partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

 

33.3                        Recovering Finance Party’s rights

 

On a distribution by the Agent under clause 33.2 of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

 

33.4                        Reversal of redistribution

 

If any part of the Sharing Payment received or recovered (or which is deemed to have been received or recovered) by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

(a)                                 each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for that account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the Redistributed Amount); and

 

(b)                                 as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

 

33.5                        Exceptions

 

(a)                                 This clause 33 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)                                 A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                                   it notified the other Finance Party of the legal or arbitration proceedings; and

 

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(ii)                                the 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.

 

33.6                        Ancillary Lenders

 

(a)                                 This clause 33 shall not apply to any receipt or recovery by a Lender in its capacity as an Ancillary Lender at any time prior to service of notice under clause 27.20 (Acceleration).

 

(b)                                 Following service of notice under clause 27.20 (Acceleration), this clause 33 shall apply to all receipts or recoveries by Ancillary Lenders except to the extent that the receipt or recovery represents a reduction from the Designated Gross Amount for an Ancillary Facility to its Designated Net Amount.

 

34                                  Payment mechanics

 

34.1                        Payments to the Agent

 

(a)                                 On each date on which an Obligor or a Lender is required to make a payment under a Finance Document (excluding a payment under the terms of an Ancillary Document) or, in the case of an Obligor, a scheduled payment under a Hedging Agreement, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

(b)                                 Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in a principal financial centre in a Participating Member State or London) with such bank as the Agent specifies.

 

34.2                        Distributions by the Agent

 

Each payment received by the Agent under the Finance Documents for another Party shall, subject to clause 34.3 and clause 34.4 be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than 5 Business Days notice with a bank in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London).

 

34.3                        Distributions to an Obligor

 

The Agent may (with the consent of the Obligor or in accordance with clause 35 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

34.4                       Clawback

 

(a)                                 Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

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(b)                                 If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

34.5                        Impaired  Agent

 

If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with clause 34.1 (Payments to the Agent) may instead pay that amount direct to the required recipient or if the relevant Obligor and the Majority Lenders agree at that time pay that amount to an interest-bearing account (which account shall bear interest at a market rate taking into account the currency and term of the deposit) held with an Acceptable Bank which is a regular acceptor of deposits 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 Obligor or the Lender making the Payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents.  In each case such payments must be made on the due date for payment under the Finance Documents.  The trust account must be held in London or in a principal financial centre of another jurisdiction whose law recognises the concept of a trust arrangement and in which the Majority Lenders consider that the rights of the Partiers in respect of that account (and the rights to receive monies due to them standing to its credit) will not be prejudiced (including in the event of an insolvency or other similar proceedings affecting the Acceptable Bank or the relevant recipient party).  In each case such payments must be made on the due date for payment under the Finance Documents.

 

34.6                        Partial payments

 

(a)                                 If the Agent receives a payment for application against amounts due in respect of any Finance Documents that is insufficient to discharge all the amounts then due and payable by an Obligor under those Finance Documents to the Agent, the Arrangers and the Lenders, the Agent shall apply that payment towards the obligations of that Obligor under those Finance Documents to such parties in the following order:

 

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

 

(ii)                                secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents to such parties;

 

(iii)                             thirdly, in or towards payment pro rata of any principal due but unpaid under those Finance Documents to such parties; and

 

(iv)                            fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents to such parties.

 

(b)                                 The Agent shall, if so directed by the Majority Lenders, vary the order set out in clause 34.6(a)(ii) to 34.6(a)(iv).

 

(c)                                  Clause 34.6(a) and 34.6(b) will override any appropriation made by an Obligor.

 

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34.7                        No set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

34.8                        Business Days

 

(a)                                 Subject to clause 34.8(b), 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)                                 If a payment under the Finance Documents is due to be paid on a relevant Termination Date but that day is not a Business Day, that payment shall be made on the preceding Business Day.

 

(c)                                  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 date on which, but for this clause 34.8, such principal or Unpaid Sum would otherwise have been due.

 

34.9                        Currency of account

 

(a)                                 Subject to clause 34.9(b) to 34.9(e), the Base Currency is the currency of account and payment for any sum due from an Obligor 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 the Base Currency shall be paid in that other currency.

 

34.10                 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 Agent (after consultation with the Company); and

 

(ii)                                any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

 

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(b)                                 If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Company) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

34.11                 Disruption to Payment Systems etc

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Company that a Disruption Event has occurred:

 

(a)                                 the Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

(b)                                 the Agent shall not be obliged to consult with the Company in relation to any changes mentioned in clause 34.11(a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

(c)                                  the Agent may consult with the other Finance Parties in relation to any changes mentioned in clause 34.11(a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

(d)                                 any such changes agreed upon by the Agent and the Company 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 40 (Amendments and waivers);

 

(e)                                  the Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this clause 34.11; and

 

(f)                                   the Agent shall notify the other Finance Parties of all changes agreed pursuant to clause 34.11(d) above.

 

35                                  Set-off

 

(a)                                 A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

 

(b)                                 Any credit balances taken into account by an Ancillary Lender when operating a net limit in respect of any overdraft under an Ancillary Facility shall on enforcement of the Finance Documents be applied first in reduction of the overdraft provided under that Ancillary Facility in accordance with its terms.

 

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36                                  Notices

 

36.1                        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.

 

36.2                        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 Company, that identified with its name below;

 

(b)                                 in the case of the Agent, the Arrangers, each Original Lender and the Original Ancillary Lender, that identified with its name below; and

 

(c)                                  in the case of each other Lender, each other Ancillary Lender or any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party,

 

or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than 5 Business Days notice.

 

36.3                        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 3 Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

 

and, if a particular department or officer is specified as part of its address details provided under clause 36.2, if addressed to that department or officer.

 

(b)                                 Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s signature below (or any substitute department or officer as the Agent shall specify for this purpose).

 

(c)                                  All notices from or to an Obligor shall be sent through the Agent.

 

(d)                                 Any communication or document made or delivered to the Company in accordance with this clause 36.3 will be deemed to have been made or delivered to each of the Obligors.

 

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36.4                        Notification of address and fax number

 

Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to clause 36.2 or changing its own address or fax number, the Agent shall notify the other Parties.

 

36.5                        Communication  when Agent is an Impaired Agent

 

Upon the Agent becoming aware that it is an Impaired Agent, the Agent will as soon as reasonably practicable notify, in writing, each Party to a Finance Document that it is an Impaired Agent (the Impaired Agent Notice).  The Impaired Agent Notice will specify the date on which the Agent became an Impaired Agent and will include the details required to be delivered by the Agent under clause 31.2 (Duties of the Agent).  From the date of the Impaired Agent Notice, the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the 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 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 Agent has been appointed.  For the avoidance of doubt, the failure of the Agent to deliver the Impaired Agent Notice will not prevent the Parties from communicating directly with each other if the Agent is an Impaired Agent.

 

36.6                        Electronic communication

 

(a)                                 Any communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent and the relevant Lender:

 

(i)                                   agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

(ii)                                notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

 

(iii)                             notify each other of any change to their address or any other such information supplied by them.

 

(b)                                 Any electronic communication made between the Agent and a Lender will be effective only when actually received in intelligible form and in the case of any electronic communication made by a Lender to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

36.7                        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 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.

 

37                                  Calculations and certificates

 

37.1                        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.

 

37.2                        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.

 

37.3                        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.

 

38                                  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.

 

39                                  Remedies and waivers

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement and the other Finance Documents are cumulative and not exclusive of any rights or remedies provided by law.

 

40                                  Amendments and waivers

 

40.1                        Intercreditor Deed

 

This clause 40 is subject to the terms of the Intercreditor Deed.

 

40.2                        Required consents

 

(a)                                 Subject to clause 40.3 any term of the Finance Documents may be amended or waived only with the prior written consent of the Majority Lenders and the Company and any such amendment or waiver will be binding on all Parties.

 

(b)                                 The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this clause 40.

 

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(c)                                  Each Obligor agrees to any such amendment or waiver permitted by this clause 40 which is agreed to by the Company.  This includes any amendment or waiver which would, but for this clause 40.2(c), require the consent of all of the Guarantors.

 

40.3                        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 (Definitions and interpretation);

 

(ii)                                an extension to the date of payment of any amount under the Finance Documents;

 

(iii)                             a reduction in the Margin (other than by means of the operation of the Margin ratchet) or a reduction in the amount of any payment of principal, interest, fees or other amount payable to a Lender under the Finance Documents (other than in relation to clause 11 (Mandatory prepayment));

 

(iv)                            a change in currency of payment of any amount under the Finance Documents;

 

(v)                               an increase in or an extension of any Commitment or the Total Commitments;

 

(vi)                            a change to the Borrowers or Guarantors other than in accordance with clause 30 (Changes to the Obligors);

 

(vii)                         any provision which expressly requires the consent of all the Lenders;

 

(viii)                      clause 1.3 (Third party rights), clause 2.3 (Finance Parties’ rights and obligations), clause 11 (Mandatory prepayment), 15.1 (Margin adjustment), clause 28 (Changes to the Lenders), clause 33 (Sharing among the Finance Parties) or this clause 40;

 

(ix)                            (other than as expressly permitted by the provisions of any Finance Document) the nature or scope of the guarantee and indemnity granted under clause 22 (Guarantee and indemnity);

 

(x)                               the release of any guarantee and indemnity granted under clause 22 (Guarantee and indemnity) unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is expressly permitted under this Agreement; or

 

(xi)                            any amendment to the order of priority or subordination under the Intercreditor Deed,

 

shall not be made without the prior consent of all the Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of the Agent, the Arrangers, any Ancillary Lender or any Hedge Counterparty (each in their capacity as such) may not be effected without the prior written consent of the Agent, the Arrangers, that Ancillary Lender or, as the case may be, that Hedge Counterparty.

 

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40.4                        Deemed consent

 

If at any time the Lenders agree to amend or waive any term of this Agreement in accordance with this clause 40 then the Ancillary Lenders will be deemed to make a corresponding amendment or waiver in equivalent terms to the Ancillary Documents and to take any steps that the Agent may reasonably require on behalf of the Lenders to give effect to this clause 40.4.

 

40.5                        Disenfranchisement  of Defaulting Lenders

 

(a)                                 For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments.

 

(b)                                 For the purposes of this clause 40.5 the Agent may assume that the following Lenders are Defaulting Lenders:

 

(i)                                   any Lender which has notified the Agent that it has become a Defaulting Lender;

 

(ii)                                any Lender in relation to which it is aware that any of the events of circumstances referred to in paragraphs (a), (b) or (c) of the definition of Defaulting Lender has occurred and, in the case of the events or circumstances referred to in paragraph (a), none of the exceptions to that paragraph apply,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

40.6                        Replacement  of a Defaulting Lender

 

(a)                                 The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by giving 10 Business Days’ prior written notice to the Agent and such Lender:

 

(i)                                   replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to clause 28 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement;

 

(ii)                                require such Lender to (and such Lender shall) transfer pursuant to clause 28 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of the Lender; or

 

(iii)                             require such Lender to (and such Lender shall) transfer pursuant to clause 28 (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 (Replacement Lender) selected by the Company, and which (unless the Agent is an Impaired Agent) is acceptable to the Agent (acting reasonably), which confirms its willingness to assume and does assume all the obligations or all the relevant

 

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obligations of the transferring Lender (including the assumption of the transferring Lender’s participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 Any transfer of rights and obligations of a Defaulting Lender pursuant to this clause shall be subject to the following conditions:

 

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

 

(ii)                                neither the Agent nor the Defaulting Lender shall have any obligation to the Company to find a Replacement Lender;

 

(iii)                             the transfer must take place no later than 20 Business Days after the notice referred to in clause 40.6(a) above; and

 

(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.

 

41                                  Confidentiality

 

41.1                        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 41.2 (Disclosure of Confidential Information) 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.

 

41.2                        Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

(a)                                 to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this clause 41.2(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 and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(ii)                                with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by

 

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reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(iii)                             appointed by any Finance Party or by a person to whom clause 41.2(b)(i) or (ii) applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under clause 31.14(c) (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 clause 41.2(b)(i) or 41.2(b)(ii);

 

(v)                               to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)                            to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to clause 28.9 (Security over Lenders’ rights));

 

(vii)                         to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(viii)                      who is a Party; or

 

(ix)                            with the consent of the Company;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)                             in relation to clause 41.2(b)(i), 41.2(b)(ii) and 41.2(b)(iii), 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 clause 41.2(b)(iv), the person to whom the Confidential Information is to be given has entered into a Confidential 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 clauses 41.2(b)(v) and 41.2(b)(vii), 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;

 

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(c)                                  to any person appointed by that Finance Party or by a person to whom clause 41.2(b)(i) or 41.2(b)(ii) 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 clause 41.2(c) if the party 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;

 

(d)                                 to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

 

41.3                        Disclosure to a numbering service provider

 

(a)                                 Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

 

(i)                                   names of Obligors;

 

(ii)                                country of domicile of Obligors;

 

(iii)                             place of incorporation of Obligors;

 

(iv)                            date of this Agreement;

 

(v)                               the names of the Agent and the Arranger;

 

(vi)                            date of each amendment and restatement of this Agreement;

 

(vii)                         amount of Total Commitments;

 

(viii)                      currencies of the Facility;

 

(ix)                            type of Facility;

 

(x)                               ranking of the Facility;

 

(xi)                            changes to any of the information previously supplied pursuant to clauses 41.3(a)(i) to 41.3(a)(xi) above; and

 

(xii)                         such other information agreed between such Finance Party and the Company.

 

to enable such number service provider to provide its usual syndicated loan numbering identification services.

 

(b)                                 The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a number service provider

 

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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 number service provider.

 

(c)                                  Each Obligor represents that none of the information set out in clauses paragraphs 41.3(a)(i) to 41.3(a)(xii) above is, nor will at any time be, unpublished price-sensitive information.

 

(d)                                 The Agent shall notify the Parent and the other Finance Parties of:

 

(i)                                   the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facility and/or one or more Obligors; and

 

(ii)                                the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider.

 

41.4                        Entire agreement

 

This clause 41 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.

 

41.5                        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.

 

41.6                        Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:

 

(a)                                 of the circumstances of any disclosure of Confidential Information made pursuant to clause 41.2(b)(v) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(b)                                 upon becoming aware that Confidential Information has been disclosed in breach of this clause 41.

 

41.7                        Continuing obligations

 

The obligations in this clause 41 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of 12 months from the earlier of:

 

(a)                                 the date on which all amounts payable by the Obligors under or in connection with the Finance Documents 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.

 

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42                                  Publicity

 

The Company and each Obligor confirm it will not delay or unreasonably withhold its consent to any Finance Party publicising (by such means as that Finance Party may determine) its role in the funding of the Facility.

 

43                                  Counterparts

 

Each Finance Document may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of a counterpart of a Finance Document by e-mail attachment or telecopy shall be an effective mode of delivery.

 

44                                  Governing law

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

45                                  Enforcement

 

45.1                        Jurisdiction of English courts

 

(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 45 is for the benefit of the Finance Parties.  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.

 

45.2                        Service of process

 

(a)                                 Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

 

(i)                                   irrevocably appoints Luxfer Holdings PLC as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document (and Luxfer Holdings PLC by its execution of this Agreement, accepts that appointment); and

 

(ii)                                agrees that failure by an agent for service of process to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

 

(b)                                 If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, Luxfer Holdings PLC (on behalf of all the Obligors) must immediately (and in any event within 5 days of such event taking place) appoint another agent on terms acceptable to the Agent.  Failing this, the Agent may appoint another agent for this purpose.

 

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(c)                                  Luxfer Holdings PLC expressly agrees and consents to the provisions of this clause 45 and clause 44 (Governing law).

 

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

 

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Schedule 1

 

Part 1 - Original Borrowers

 

	
Company Name
    	
 
    	
Company Number
    	
 
    	
Relevant Jurisdiction
    
	
Luxfer Holdings PLC
    	
 
    	
3690830
    	
 
    	
England & Wales
    
	
BA Holdings, Inc.
    	
 
    	
 
    	
 
    	
Delaware
    
	
Luxfer Group Limited
    	
 
    	
3944037
    	
 
    	
England & Wales
    
	
Luxfer Group 2000 Limited
    	
 
    	
4027006
    	
 
    	
England & Wales
    
	
MEL Chemicals Inc.
    	
 
    	
 
    	
 
    	
New Jersey
    
	
Magnesium Elektron North America Inc.
    	
 
    	
 
    	
 
    	
Delaware
    

 

Part 2 - Original Guarantors

 

	
Company Name
    	
 
    	
Company Number
    	
 
    	
Relevant Jurisdiction
    
	
Luxfer Holdings PLC
    	
 
    	
3690830
    	
 
    	
England & Wales
    
	
BA Holdings, Inc.
    	
 
    	
 
    	
 
    	
Delaware
    
	
Luxfer Group Limited
    	
 
    	
3944037
    	
 
    	
England & Wales
    
	
Luxfer Group 2000 Limited
    	
 
    	
4027006
    	
 
    	
England & Wales
    
	
MEL Chemicals Inc.
    	
 
    	
 
    	
 
    	
New Jersey
    
	
Magnesium Elektron North America, Inc.
    	
 
    	
 
    	
 
    	
Delaware
    
	
Luxfer Gas Cylinders Limited
    	
 
    	
3376625
    	
 
    	
England & Wales
    
	
Luxfer Group Services Limited
    	
 
    	
3981395
    	
 
    	
England & Wales
    
	
Magnesium Elektron Limited
    	
 
    	
3141950
    	
 
    	
England & Wales
    
	
Luxfer Overseas Holdings Limited
    	
 
    	
3081726
    	
 
    	
England & Wales
    
	
Luxfer Gas Cylinders China Holdings Limited
    	
 
    	
5165622
    	
 
    	
England & Wales
    
	
Luxfer Inc.
    	
 
    	
 
    	
 
    	
Delaware
    
	
Hart Metals, Inc.
    	
 
    	
 
    	
 
    	
Delaware
    
	
Reade Manufacturing Company
    	
 
    	
 
    	
 
    	
Delaware
    

 

140

 

Part 3 - The Original Lenders

 

Commitments as at the Restatement Date

 

	
 
    	
 
    	
Total Commitment as 
   at the Restatement 
   Date
    	
 
    	
Bilateral Limit as at 
   the Restatement Date
    	
 
    
	
Lloyds TSB Bank plc
    	
 
    	
£
    	
31,600,000
    	
 
    	
£
    	
17,000,000
    	
 
    
	
Clydesdale Bank PLC (trading as Yorkshire   Bank)
    	
 
    	
£
    	
23,400,000
    	
 
    	
£
    	
9,800,000
    	
 
    
	
Bank of America N.A.
    	
 
    	
£
    	
15,000,000
    	
 
    	
US$
    	
27,250,000
    	
 
    
									

 

141

 

Schedule 2

 

Conditions precedent

 

Part 1 - Conditions precedent to signing this Agreement

 

1                                         Obligors

 

(a)                                 A copy of the constitutional documents of each Original Obligor.

 

(b)                                 A copy of a resolution of the board or, if applicable, a committee of the board of directors of each Original Obligor:

 

(i)                                   approving the terms of, and the transactions contemplated by, the Transaction Documents to which it is a party and resolving that it execute, deliver and perform the Transaction Documents to which it is a party;

 

(ii)                                authorising a specified person or persons to execute the Transaction Documents to which it is a party on its behalf;

 

(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; and

 

(iv)                            in the case of an Obligor other than the Company, authorising the Company to act as its agent in connection with the Finance Documents.

 

(c)                                  If applicable, a copy of a resolution of the board of directors of the relevant Original Obligor, establishing the committee referred to in paragraph 1(b).

 

(d)                                 A specimen of the signature of each person authorised by the resolution referred to in paragraph 1(b) in relation to the Finance Documents and related documents.

 

(e)                                  A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor (other than the Company), approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party.

 

(f)                                   A copy of a resolution of the board of directors of each corporate shareholder of each Original Guarantor approving the terms of the resolution referred to in paragraph 1(e).

 

(g)                                  A certificate from a director of the Company confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, Security or similar limit binding on any Original Obligor to be exceeded.

 

(h)                                 A certificate from a director of the Company or other relevant Original Obligor certifying that each copy document relating to it specified in this part 1 of schedule 2 is correct, complete and in full force and effect and has not been amended, novated, supplemented, superseded or terminated as at a date no earlier than the date of this Agreement.

 

(i)                                     If an Original Obligor is not incorporated in England and Wales, such documentary evidence that such Original Obligor has complied with any law in its jurisdiction relating to financial assistance or analogous process.

 

142

 

(j)                                    If an Original Obligor is incorporated outside the United Kingdom, a certificate of that Obligor (signed by a director) certifying either that (i) it has not registered one or more establishments (as that term is defined in Part 1 of the Overseas Companies Regulations 2009) with the Registrar of Companies or (ii) it has such an establishment and specifying the name and registered number under which it is registered with the Registrar of Companies.

 

(k)                                 A search at the Companies Court at the Royal Courts of Justice in London and at Companies House as at the date of this Agreement revealing no adverse entries against any of the Original Obligors.

 

(l)                                     A Uniform Commercial Code search of the Secretary of State (or equivalent recording office) of the state of incorporation of each US Obligor in a form acceptable to the Agent’s counsel and releases in a form acceptable to the Agent’s counsel of any existing liens appearing on such searches that do not constitute Permitted Security.

 

2                                         Finance Documents

 

(a)                                 This Agreement executed by each member of the Group who is a party to this Agreement.

 

(b)                                 The Fee Letters executed by the Company.

 

(c)                                  The Hedging Letter.

 

3                                         Other documents and evidence

 

(a)                                 The Group Structure Chart which shows the Group assuming the Closing Date has occurred.

 

(b)                                 The Base Case Model.

 

(c)                                  The Information Memorandum.

 

(d)                                 A copy, certified by a director of the Company to be a true copy, of the Original Financial Statements of each other Obligor.

 

(e)                                  The Funds Flow Statement detailing the proposed movement of funds on or before the Closing Date.

 

(f)                                   The Note Documents in the agreed form.

 

(g)                                  An irrevocable prepayment notice in the agreed form in respect of the Existing Notes signed by the Company together with a certificate from a director of the Company confirming that such prepayment notices will be served on or prior to the date falling 5 Business Days after the date of this Agreement.

 

(h)                                 The Agent being satisfied with the results of its “know your customer” and money laundering checks on the Original Obligors, and their officers and shareholders.

 

143

 

Part 2 - Conditions precedent to initial Utilisation

 

1                                         Obligors

 

(a)                                 A copy of the constitutional documents of each Original Obligor (and in respect of MEL Chemicals Inc as certified by applicable regulatory authority in a form acceptable to the Agent (acting reasonably)).

 

(b)                                 A copy of a resolution of the board or, if applicable, a committee of the board of directors of each Original Obligor:

 

(i)                                   approving the terms of, and the transactions contemplated by, the Transaction Documents to which it is a party and resolving that it execute, deliver and perform the Transaction Documents to which it is a party;

 

(ii)                                authorising a specified person or persons to execute the Transaction Documents to which it is a party on its behalf;

 

(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; and

 

(iv)                            in the case of an Obligor other than the Company, authorising the Company to act as its agent in connection with the Finance Documents.

 

(c)                                  If applicable, a copy of a resolution of the board of directors of the relevant Original Obligor, establishing the committee referred to in paragraph 1(b).

 

(d)                                 A specimen of the signature of each person authorised by the resolution referred to in paragraph 1(b) in relation to the Finance Documents and related documents.

 

(e)                                  A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor (other than the Company), approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party.

 

(f)                                   A copy of a resolution of the board of directors of each corporate shareholder of each Original Guarantor approving the terms of the resolution referred to in paragraph 1(e).

 

(g)                                  A certificate from a director of the Company confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, Security or similar limit binding on any Original Obligor to be exceeded.

 

(h)                                 A certificate from a director of the Company or other relevant Original Obligor certifying that each copy document relating to it specified in this part 2 of schedule 2 is correct, complete and in full force and effect and has not been amended, novated, supplemented, superseded or terminated as at a date no earlier than the first Utilisation Date.

 

(i)                                     If an Original Obligor is not incorporated in England and Wales, such documentary that such Original Obligor has complied with any law in its jurisdiction relating to financial assistance or analogous process.

 

144

 

(j)                                    If an Original Obligor is incorporated outside the United Kingdom, a certificate of that Obligor (signed by a director) certifying either that (i) it has not registered one or more establishments (as that term is defined in Part 1 of the Overseas Companies Regulations 2009) with the Registrar of Companies or (ii) it has such an establishment and specifying the name and registered number under which it is registered with the Registrar of Companies.

 

(k)                                 A search at the Companies Court at the Royal Courts of Justice in London and at Companies House as at the first Utilisation Date revealing no adverse entries against any of the Original Obligors.

 

(l)                                     A Uniform Commercial Code search of the Secretary of State (or equivalent recording office) of the state of incorporation of each US Obligor in a form acceptable to the Agent’s counsel and releases in a form acceptable to the Agent’s counsel of any existing liens appearing on such searches that do not constitute Permitted Security.

 

2                                         Transaction Documents

 

A copy of each of the Transaction Documents (other than the Finance Documents) executed by the parties to those documents.

 

3                                         Finance Documents

 

(a)                                 The Intercreditor Deed executed by all the parties to that deed.

 

(b)                                 An ancillary facility letter between Lloyds TSB Bank plc and the Company.

 

(c)                                  An ancillary facility letter between Bank of America, N.A. and the Company.

 

(d)                                 An ISDA Master Agreement and ISDA Schedule between the Company and each Bilateral Lender.

 

(e)                                  At least 2 originals of the following transaction security documents executed by the Original Obligors specified below opposite the relevant transaction security document:

 

	
Name of Original Obligor
    	
 
    	
Transaction Security Document
    
	
Each Obligor incorporated in England and   Wales
    	
 
    	
Debenture
    
	
Each Obligor incorporated in US
    	
 
    	
Security agreement
    
	
Luxfer Overseas Holdings Limited, BA   Holdings, Inc and MEL Chemicals Inc.
    	
 
    	
Share pledge agreement
    

 

(f)                                   All duly executed notices required to be sent under the transaction security documents.

 

(g)                                  All share certificates, transfers and stock transfer forms or equivalent duly executed by the relevant Obligor in blank in relation to the assets subject to or expressed to be subject to the transaction security and other documents of title to be provided under the transaction security documents.

 

145

 

(h)                                 A perfection certificate for each US Obligor delivered to the security trustee, which shall be executed by such US Obligor and shall be in a form and substance previously provided to the security trustee or in a form and substance satisfactory to the security trustee (acting reasonably).

 

4                                         Insurance

 

A letter from Marsh insurance broker dated no earlier than the Closing Date listing the insurance policies of the Group and confirming that they are on risk and that the insurance for the Group at the first Utilisation Date covering appropriate risks for the business carried out by the Group and that such insurance complies with the terms of the Finance Documents.

 

5                                         Legal opinions

 

The following legal opinions, each addressed to, and capable of being relied on by, the Agent, the security trustee and the Original Lenders:

 

(a)                                 a legal opinion of Addleshaw Goddard LLP, legal advisers to the Agent, the Arrangers and the security trustee as to English law substantially in the form provided to the Agent, the Arrangers and the security trustee and/or distributed to the Original Lenders prior to execution and delivery of this Agreement;

 

(b)                                 a legal opinion of Husch Blackwell, legal advisers to the Agent, Arrangers and the security trustee as to New York law substantially in the form provided to the Agent, the Arrangers and the security trustee and/or distributed to the Original Lenders prior to execution and delivery of this Agreement; and

 

(c)                                  a legal opinion of Brown Mokowitz & Kallen, PLC., legal advisers to the Agent, Arrangers and the security trustee as to New Jersey law substantially in the form provided to the Agent, the Arrangers and the security trustee and/or distributed to the Original Lenders prior to execution and delivery of this Agreement.

 

6                                         Other documents and evidence

 

(a)                                 Evidence that any process agent referred to in clause 45.2 (Service of process), if not an Original Obligor, has accepted its appointment.

 

(b)                                 Evidence that the fees, costs and expenses then due from the Company pursuant to clause 7.4 (Repayment of Ancillary Facility), clause 16 (Fees) and clause 21 (Costs and expenses) payable before the Closing Date have been paid and fees payable on the Closing Date have or will be paid on the Closing Date.

 

(c)                                  A certificate from a director of the Company specifying each member of the Group (assuming the Closing Date has occurred) which is a Dormant Subsidiary as at the Closing Date together with certified copies (certified by such director to be a true copy) of the last audited accounts of each such Dormant Subsidiary.

 

(d)                                 A certificate from a director of the Company certifying that:

 

(i)                                   the Note Documents are in full force and effect;

 

(ii)                                a utilisation request requesting the utilisation of the full amount of the Notes on or before the Closing Date has been issued by the Company and each of the conditions precedent to such utilisation specified in clause 4 of the note

 

146

 

purchase agreement set out in limb (a) of the definition of Note Documents have been satisfied (other than utilisation of the Facility);

 

(iii)                               as a result of the Notes referred at paragraph 6(d)(ii) above the Company has the sum of £[figure to be set out in officer’s certificate to be sufficient to repay Existing Notes and ABL Facility in full] available to it:

 

Notes                                                                                                                 [figure to be set out in officer’s certificate]

 

[                    ]                                                                            [figure to be set out in officer’s certificate]

 

(iv)                              the sum of £[figure to be set out in officer’s certificate to be sufficient to repay Existing Notes and ABL Facility in full] has been applied or will, simultaneously with the first Loan under this Agreement be applied to repay the Existing Notes and the ABL Facility in full.

 

(e)                                  A certificate from a director of the Company detailing the estimated Transaction Costs.

 

(f)                                   Utilisation Requests relating to any Utilisations to be made on the Closing Date.

 

(g)

 

(i)                                   Such release documents as are necessary to discharge and release all existing Security granted by each member of the Group other than Security falling within limbs (a)-(g) of the definition of Permitted Security.

 

(ii)                                Releases in agreed form of any existing liens appearing on the results of the Uniform Commercial Code searches referred to in paragraph 1(l) above that do not constitute Permitted Security.

 

(h)                                 A certificate of the Company addressed to the Finance Parties confirming which companies within the Group are Material Companies.

 

(i)                                     The Note Documents duly executed by each party to each Note Document in the form previously agreed by the Agent.

 

(j)                                    The Agent being satisfied with the results of its “know your customer” and money laundering checks on the Original Obligors, and their officers and shareholders.

 

(k)                                 A certified copy of the cancellation notice served under the ABL Facility.

 

147

 

Part 3 - Conditions precedent required to be delivered by an Additional Obligor

 

1                                         An Accession Deed executed by the Additional Obligor and the Company.

 

2                                         A copy of the constitutional documents of the Additional Obligor.

 

3                                         A copy of a resolution of the board or, if applicable, a committee of the board of directors of the Additional Obligor:

 

(a)                                 approving the terms of, and the transactions contemplated by, the Accession Deed and the Finance Documents and resolving that it execute, deliver and perform the Accession Deed and any other Finance Document to which it is party;

 

(b)                                 authorising a specified person or persons to execute the Accession Deed and other Finance Documents on its behalf;

 

(c)                                  authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to an Additional Borrower, 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; and

 

(d)                                 authorising the Company to act as its agent in connection with the Finance Documents.

 

4                                         If applicable, a copy of a resolution of the board of directors of the Additional Obligor, establishing the committee referred to in paragraph 3.

 

5                                         A specimen of the signature of each person authorised by the resolution referred to in paragraph 3.

 

6                                         A copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party.

 

7                                         A copy of a resolution of the board of directors of each corporate shareholder of each Additional Guarantor approving the terms of the resolution referred to in paragraph 6.

 

8                                         A certificate from a director of the Additional Obligor confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, Security or similar limit binding on it to be exceeded.

 

9                                         A certificate from a director of the Additional Obligor certifying that each copy document listed in this part 3 of schedule 2 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of the Accession Deed.

 

10                                  A copy of any other authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Deed or for the validity and enforceability of any Finance Document.

 

11                                  The latest Annual Financial Statement of the Additional Obligor.

 

12                                  The following legal opinions each addressed to the Agent and the Lenders:

 

148

 

(a)                                 A legal opinion of Addleshaw Goddard, the legal advisers to the Agent and the Arrangers as to English law in the form provided to the Agent and the Arrangers and/or distributed to the Lenders prior to signing the Accession Deed.

 

(b)                                 If the Additional Obligor is incorporated in or has its centre of main interest or establishment (as referred to in clause 23.27 (Centre of main interests and establishments)) in a jurisdiction other than England and Wales or is executing a Finance Document which is governed by a law other than English law, a legal opinion of the legal advisers to the Agent and the Arrangers in the jurisdiction of its incorporation, centre of main interest or establishment (as applicable) or, as the case may be, the jurisdiction of the governing law of that Finance Document (Applicable Jurisdiction) as to the law of the Applicable Jurisdiction and in the form provided to the Agent and the Arrangers and/or distributed to the Lenders prior to signing the Accession Deed.

 

13                                  If the proposed Additional Obligor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in clause 45.2 (Service of process) if not an Obligor, has accepted its appointment in relation to the proposed Additional Obligor.

 

14                                  Any notices duly executed or documents required to be given or executed under the terms of those security documents.

 

15                                  An accession memorandum to the Company Intra-Group Loan Agreement or similar loan agreement with the Company.

 

149

 

Schedule 3

 

Requests and Notices

 

Part 1 — Utilisation Request

 

From:               [Borrower] [Company](i)

 

To:                             [Agent]

 

Dated:

 

Dear Sirs

 

Luxfer Holdings PLC — Senior facilities agreement dated · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement.  This is a Utilisation Request.  Terms defined in the Facilities Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

2                                         We wish to borrow a Loan on the following terms:

 

	
(a)
    	
Borrower:
    	
·
    
	
 
    	
 
    	
 
    
	
(b)
    	
Proposed Utilisation Date:
    	
· (or, if that is not a Business Day, the next   Business Day)
    
	
 
    	
 
    	
 
    
	
(c)
    	
Currency of Loan:
    	
·
    
	
 
    	
 
    	
 
    
	
(d)
    	
Amount:
    	
· or, if less, the Available Facility
    
	
 
    	
 
    	
 
    
	
(e)
    	
Interest Period:
    	
·
    

 

3                                         We confirm that each condition specified in clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

4                                         [We irrevocably instruct you to deduct from the amount of the Loan the legal fees, VAT and disbursements of Addleshaw Goddard in the amount of £· and to pay such amount to Addleshaw Goddard on the Utilisation Date.]

 

5                                         The proceeds of this Loan should be credited to [account(iv)].

 

6                                         This Utilisation Request is irrevocable.

 

(i)                                     Amend as appropriate.  Utilisation Requests can be given by the Borrower or by the Company.

 

The account for the utilisations to repay Existing Notes and ABL Facility should specify the account of the Receiving Agent and the account in the redemption statement (as applicable)

 

150

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory for
    	
 
    

 

[the Company on behalf of [insert name of relevant Borrower]] [insert name of Borrower](v)

 

(v)                                 Amend as appropriate.  Utilisation Requests can be given by the Borrower or by the Company.

 

151

 

Part 2 - Not used

 

152

 

Part 3 - Withdrawal Request

 

From:               [Borrower] [Company](vi)

 

To:                             [Agent]

 

Dated:

 

Dear Sirs

 

Luxfer Holdings PLC — Senior facilities agreement dated  · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement.  This is a Withdrawal Request.  Terms defined in the Facilities Agreement have the same meaning in this Withdrawal Request unless given a different meaning in this Withdrawal Request.

 

2                                         We wish to withdraw cash cover as follows:

 

	
(a)
    	
Proposed withdrawal date:
    	
· (or, if that is not a Business Day, the next   Business Day)
    
	
 
    	
 
    	
 
    
	
(b)
    	
Amount:
    	
·
    

 

3                                         We confirm that each condition specified in clause 10.8 (Cash cover) is satisfied.

 

4                                         We confirm that each condition in clause 10.7 (Right of cancellation in relation to a Defaulting Lender) is satisfied.

 

5                                         [The proceeds of the withdrawal should be credited to the following accounts:

 

·

 

6                                         We confirm that the amount withdrawn will be applied in [redeeming the Vendor Loan Notes and we attach copies of the relevant notices of redemption] [prepaying the Ancillary Facility].

 

7                                         This Withdrawal Notice is irrevocable.

 

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory for
    	
 
    

 

[[the Company] on behalf of [insert name of relevant Borrower]] [insert name of Borrower]

 

(vi)                              Amend as appropriate.  The Withdrawal Notice can be given by the Borrower or the Company.

 

153

 

Schedule 4

 

Mandatory Cost Formula

 

1                                         The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank.

 

2                                         On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate, as a percentage rate, a rate (Additional Cost Rate) for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

 

3                                         The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent.  This percentage will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office.

 

4                                         The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Agent as follows:

 

(a)                                 in relation to a sterling Loan:

 

 

(b)                                 in relation to a Loan in any currency other than sterling:

 

 

Where:

 

A                                       is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.

 

B                                       is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in clause 13.3(a) (Default interest)) payable for the relevant Interest Period on the Loan.

 

C                                       is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

 

D                                       is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits.

 

154

 

E                                        is designed to compensate the Lenders for amounts payable under the Fees Rules and is calculated by the Agent as being the average of the most recent rates of charge supplied by the Base Reference Banks to the Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

5                                         For the purposes of this schedule:

 

Eligible Liabilities and Special Deposits have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England

 

Fees Rules means the rules on periodic fees contained in the Financial Services Authority Fees Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits

 

Fee Tariffs means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate) and

 

Tariff Base has the meaning given to it in, and will be calculated in accordance with, the Fees Rules

 

6                                         In application of the above formulae in paragraph 4, A, B, C and D will be included in the formulae as percentages (i.e. 5% will be included in the formula as 5 and not as 0.05).  A negative result obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to 4 decimal places.

 

7                                         If requested by the Agent, each Base Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Agent, the rate of charge payable by that Base Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Base Reference Bank as being the average of the Fee Tariffs applicable to that Base Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Base Reference Bank.

 

8                                         Each Lender shall supply any information required by the Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Lender shall supply the following information on or prior to the date on which it becomes a Lender:

 

(a)                                 the jurisdiction of its Facility Office; and

 

(b)                                 any other information that the Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Agent of any change to the information provided by it pursuant to this paragraph.

 

9                                        The percentages of each Lender for the purpose of A and C above and the rates of charge of each Base Reference Bank for the purpose of E above shall be determined by the Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

 

155

 

10                                  The Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the information provided by any Lender or Base Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.

 

11                                  The Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender and each Base Reference Bank pursuant to paragraphs 3, 7 and 8 above.

 

12                                  Any determination by the Agent pursuant to this schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

13                                  The Agent may from time to time, after consultation with the Company and the Lenders, determine and notify to all Parties any amendments which are required to be made to this schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties.

 

156

 

Schedule 5

 

Form of Transfer Certificate

 

To:                             · as Agent

 

From:               [The Existing Lender] (Existing Lender) and [The New Lender] (New Lender)

 

Dated:

 

Luxfer Holdings PLC — Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement and to the Intercreditor Deed (as defined in the Facilities Agreement).  This agreement (Agreement) shall take effect as a Transfer Certificate for the purpose of the Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed).  Terms defined in the Facilities Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2                                         We refer to clause 28.5 (Procedure for transfer) of the Facilities Agreement:

 

(a)                                 The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the schedule in accordance with clause 28.5 (Procedure for transfer).

 

(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 36.2 (Addresses) are set out in the schedule.

 

3                                         The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in clause 28.4(c) (Limitation of responsibility of Existing Lenders).

 

4                                         The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender);]

 

(b)                                 [a Treaty Lender;]

 

(c)                                  [not a Qualifying Lender].

 

5                                         [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

(a)                                 a company resident in the United Kingdom for United Kingdom tax purposes;

 

(b)                                 a partnership each member of which is:

 

(i)                                     a company so resident in the United Kingdom; or

 

(ii)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings

 

157

 

into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

(c)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]

 

6                                         [The New Lender confirms (for the benefit of the Agent and without liability to any Obligor)  that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme (reference number ·) and is tax resident in ·(vii), so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and notifies the Company that:

 

(a)                                 each Borrower which is a Party as a Borrower as at the Transfer Date must, to the extent that the New Lender becomes a Lender under the Facility which is made available to that Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of the Transfer Date; and

 

(b)                                 each Additional Borrower which becomes an Additional Borrower after the Transfer Date must, to the extent that the New Lender is a Lender under the Facility which is made available to that Additional Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of becoming an Additional Borrower(viii).]

 

7                                         The New Lender confirms that it [is]/[is not] a Sponsor Affiliate.

 

8                                         We refer to clause · (Change of Senior Lender) of the Intercreditor Deed.

 

In consideration of the New Lender being accepted as a Senior Lender for the purposes of the Intercreditor Deed (and as defined therein), the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Deed as a Senior Lender, and undertakes to perform all the obligations expressed in the Intercreditor Deed to be assumed by a Senior Lender and agrees that it shall be bound by all the provisions of the Intercreditor Deed, as if it had been an original party to the Intercreditor Deed.

 

9                                         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.

 

10                                  This Agreement and any non-contractual obligations arising out of or in connection with governed by English law.

 

11                                  This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

(vii)                           Insert jurisdiction of tax residence

 

(viii)                        This confirmation must be included if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Facilities Agreement.

 

158

 

The Schedule

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility Office address, fax number and attention details for notices and account details for payments,]

 

	
[Existing Lender]
    	
 
    	
[New Lender]
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    

 

This Agreement is accepted as a Transfer Certificate for the purposes of the Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed and the Transfer Date is confirmed as ·.

 

[Agent]

 

By:

 

159

 

Schedule 6

 

Form of Assignment Agreement

 

To:                             · as Agent and ·, ·  as [Company], for and on behalf of each Obligor

 

From:               [the Existing Lender] (Existing Lender) and [the New Lender] (New Lender)

 

Dated:

 

Luxfer Holdings PLC - Senior Facilities Agreement dated ·   (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement and to the Intercreditor Deed (as defined in the Facilities Agreement).  This is an Assignment Agreement.  This agreement (Agreement) shall take effect as an Assignment Agreement for the purpose of the Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed).  Terms defined in the Facilities Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2                                         We refer to clause 28.5 (Procedure for transfer) of the Facilities Agreement:

 

(a)                                 The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Facilities Agreement, the other Finance Documents which correspond to that portion of the Existing Lender’s Commitments under the Facilities 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 Commitments under the Facilities 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 2(b) above.

 

3                                         The proposed Transfer Date is ·.

 

4                                         On the Transfer Date the New Lender becomes:

 

(a)                                 Party to the relevant Finance Documents (other than the Intercreditor Deed) as a Lender; and

 

(b)                                 Party to the Intercreditor Deed as a Senior Lender.

 

5                                         The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of clause 36.2 (Addresses) are set out in the schedule.

 

6                                         The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in clause 28.4(c) (Limitation of responsibility of Existing Lenders).

 

7                                         The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender;]

 

160

 

(b)                                 [a Treaty Lender;]

 

(c)                                  [not a Qualifying Lender].

 

8                                         [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

(a)                                 a company resident in the United Kingdom for United Kingdom tax purposes; or

 

(b)                                 a partnership each member of which is:

 

(i)                                   a company so resident in the United Kingdom; or

 

(ii)                                a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

(c)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]

 

9                                         [The New Lender confirms (for the benefit of the Agent and without liability to any Obligor)  that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme (reference number ·) and is tax resident in ·(ix), so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and notifies the Company that:

 

(a)                                 each Borrower which is a Party as a Borrower as at the Transfer Date must, to the extent that the New Lender becomes a Lender under the Facility which is made available to that Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of the Transfer Date; and

 

(b)                                 each Additional Borrower which becomes an Additional Borrower after the Transfer Date must, to the extent that the New Lender is a Lender under the Facility which is made available to that Additional Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of becoming an Additional Borrower(x).]

 

10                                  The New Lender confirms that it [is]/[is not](xi) a Sponsor Affiliate.

 

11                                  We refer to clause · (Change of Senior Lender) of the Intercreditor Agreement:

 

In consideration of the New Lender being accepted as a Senior Lender for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed), the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Deed as a Senior 

 

(ix)                              Insert jurisdiction of tax residence

 

(x)                                 This confirmation must be included if the New Lender holds a passport under the HRMC DT Treaty Passport scheme and wishes that scheme to apply to the Facilities.

 

(xi)                              Delete as applicable.

 

161

 

Lender, and undertakes to perform all the obligations expressed in the Intercreditor Deed to be assumed by a Senior Lender and agrees that it shall be bound by all the provisions of the Intercreditor Deed, as if it had been an original party to the Intercreditor Deed.

 

12                                  This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with clause 28.7 (Copy of Transfer Certificate, Assignment Agreement or Increase Confirmation to Company), to the [Company] (on behalf of each Obligor) of the assignment referred to in this Agreement.

 

13                                  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.

 

14                                  This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

15                                  This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

162

 

The Schedule

 

Commitment/rights and obligations to be transferred by assignment, release and accession

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

 

	
[Existing Lender]
    	
 
    	
[New Lender]
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    

 

This Agreement is accepted as an Assignment Agreement for the purposes of the Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed and the Transfer Date is confirmed as ·.

 

Signature of this Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this Agreement, which notice the Agent receives on behalf of each Finance Party.

 

[Agent]

 

By:

 

163

 

Schedule 7

 

Form of Accession Deed

 

To:                             · as Agent for itself and each of the other parties to the Intercreditor Deed referred to below

 

From:               [Subsidiary] and [[Company]]

 

Dated:

 

Dear Sirs

 

Luxfer Holdings PLC — Senior Facilities Agreement dated ·  (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement and to the Intercreditor Deed.  This deed (Accession Deed) shall take effect as an Accession Deed for the purposes of the Facilities Agreement and as a Debtor Accession Deed for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed).  Terms defined in the Facilities Agreement have the same meaning in paragraphs 1 to 3 of this Accession Deed unless given a different meaning in this Accession Deed.

 

2                                         [Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the terms of the Facilities Agreement and the other Finance Documents (other than the Intercreditor Deed) as an Additional [Borrower]/[Guarantor] pursuant to clause 30.2 (Additional Borrowers)/[clause 30.4 (Additional Guarantors) of the Facilities Agreement.  [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number ·.

 

3                                         [Subsidiary’s] administrative details for the purposes of the Facilities Agreement and the Intercreditor Deed are as follows:

 

Address:

 

Fax No.:

 

Attention:

 

4                                         [Subsidiary] (for the purposes of this paragraph 4, the Acceding Debtor) intends to [incur Liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of Liabilities under the following documents]:

 

[Insert details (date, parties and description) of relevant documents]

 

the Relevant Documents.

 

It is agreed as follows:

 

(a)                                 Terms defined in the Intercreditor Deed shall, unless otherwise defined in this Accession Deed, bear the same meaning when used in this paragraph 4.

 

(b)                                 The Acceding Debtor confirms that it intends to be party to the Intercreditor Deed as a Debtor, undertakes to perform all the obligations expressed to be assumed by a Debtor under the Intercreditor Deed and agrees that it shall be bound by all the provisions of the Intercreditor Deed as if it had been an original party to the Intercreditor Deed.

 

164

 

(c)                                  [In consideration of the Acceding Debtor being accepted as an Intra-Group Lender for the purposes of the Intercreditor Deed, the Acceding Debtor also confirms that it intends to be party to the Intercreditor Deed as an Intra-Group Lender, and undertakes to perform all the obligations expressed in the Intercreditor Deed to be assumed by an Intra-Group Lender and agrees that it shall be bound by all the provisions of the Intercreditor Deed, as if it had been an original party to the Intercreditor Deed]

 

5                                         This Accession Deed [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.

 

165

 

This Accession Deed has been signed on behalf of the Agent (for the purposes of paragraph 4 above only), signed on behalf of the [Company] and executed as a deed by [Subsidiary] and is delivered on the date stated above.

 

[Subsidiary]

 

[EXECUTED AS A DEED

 

By:  [Subsidiary]

 

	
 
    	
Director
    
	
 
    	
Director/Secretary
    

 

OR

 

	
[EXECUTED AS A DEED  

By: [Subsidiary]
    	
 
    
	
 
    	
Signature of Director
    
	
 
    	
Name of Director
    
	
in the presence of
    	
 
    
	
 
    	
Signature of witness
    
	
 
    	
Name of witness
    
	
 
    	
Address of witness
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Occupation of witness]
    

 

 

The Company

 

	
 
    	
[Company]
    

 

By:

 

The Agent

 

[Full Name of Current Agent]

 

By:

 

Date:

 

166

 

Schedule 8

 

Form of Resignation Letter

 

To:                             · as Agent

 

From:               [resigning Obligor] and [Company]

 

Dated:

 

Dear Sirs

 

Luxfer Holdings PLC - Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement.  This is a Resignation Letter.  Terms defined in the Facilities Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter.

 

2                                         Pursuant to [clause 30.3 (Resignation of a Borrower)] [clause 30.5 (Resignation of a Guarantor)], we request that [resigning Obligor] be released from its obligations as a [Borrower] [Guarantor] under the Facilities Agreement and the Finance Documents (other than the Intercreditor Deed).

 

3                                         We confirm that:

 

(a)                                 no Default is continuing or would result from the acceptance of this request;

 

(b)                                 [this request is given in relation to a Third Party Disposal of [resigning Obligor];

 

(c)                                  [the Disposal Proceeds have been or will be applied in accordance with clause 11.3; and

 

(d)                                 [];

 

4                                         This Resignation Letter (and any non-contractual obligations arising out of or in connection with it [is/are]) is governed by English law.

 

	
[Company]
    	
 
    	
[resigning   Obligor]
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    

 

167

 

Schedule 9

 

Form of Compliance Certificate

 

To:                             · as Agent

 

From:               Luxfer Holdings PLC

 

Dated:

 

Dear Sirs

 

Luxfer Holdings PLC - Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement.  This is a Compliance Certificate.  Terms defined in the Facilities Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2                                         With reference to the [Annual Financial Statements] [Quarterly Financial Statements] for the [Financial Year ended ·] [Financial Quarter ended ·], we confirm that:

 

	
Covenant
    	
 
    	
Relevant Period
    	
 
    	
Target
    	
 
    	
Actual
    	
 
    	
Compliant/Non 
   compliant
    
	
Debt Service Cash Cover
    	
 
    	
· to ·
    	
 
    	
Not less than ·:·
    	
 
    	
·:·
    	
 
    	
]
    
	
Interest Cover
    	
 
    	
· to ·
    	
 
    	
At least ·:·
    	
 
    	
·:·
    	
 
    	
]
    
	
Leverage
    	
 
    	
· to ·
    	
 
    	
Not exceeding ·:·
    	
 
    	
·:·
    	
 
    	
]
    

 

3                                         We confirm that Leverage is ·:1 and that, therefore, the Margin should be · %.]

 

4                                         [We confirm that no Default is continuing.](xii)

 

5                                         [We confirm that the following companies constitute Material Companies for the purposes of the Facilities Agreement:

 

·.]

 

[We confirm that the aggregate of the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as [EBITA)] [aggregate gross assets] of the Guarantors (calculated on an unconsolidated basis and excluding all intra-group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the [EBITA] [consolidated gross assets].]

 

(xii)                           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.

 

168

 

	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Finance Director
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
of
    	
 
    	
of
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
[Company]
    	
 
    	
[Company]
    
	
 
    	
 
    	
 
    
	
[insert applicable certification language]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
for and on behalf of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
name of Auditors of the Company(xiii)
    	
 
    	
 
    

 

(xiii)                        Only applicable if the Compliance Certificate accompanies the Audited Financial Statements and is to be signed by the Auditors.  To be agreed with the Company’s Auditors prior to signing of the Agreement.

 

169

 

Schedule 10

 

Timetables

 

	
 
    	
 
    	
Loans in euro 
   and US$
    	
 
    	
Loans in sterling
    	
 
    	
Loans in other 
   currencies
    
	
Agent notifies the Company if a currency is approved   as an Optional Currency in accordance with clause 4.3 (Conditions relating to   Optional Currencies))
    	
 
    	
-
    	
 
    	
-
    	
 
    	
U-4
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delivery of a duly completed Utilisation   Request (clause 5.1 (Delivery of a Utilisation Request))
    	
 
    	
U-3

 

1.00pm
    	
 
    	
U-1

 

9.30am
    	
 
    	
U-3

 

9.30am
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agent determines (in relation to a Loan) the   Base Currency Amount of the Loan, if required under clause 5.4 (Lenders’   participation) and notifies the Lenders of the Loan in accordance with clause   5.4 (Lenders’ participation)
    	
 
    	
U-3

 

4.00pm
    	
 
    	
U-1

 

Noon
    	
 
    	
U-3

 

Noon
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agent receives a notification from a Lender   under clause 6.2 (Unavailability of a currency)
    	
 
    	
Quotation Day

 

9.30am
    	
 
    	
-

 
    	
 
    	
Quotation Day

 

9.30am
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agent gives notice in accordance with clause   6.2 (Unavailability of a currency)
    	
 
    	
Quotation Day

 

5.30pm
    	
 
    	
U

 

9.30am
    	
 
    	
Quotation Day

 

5.30pm
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
LIBOR or EURIBOR is fixed
    	
 
    	
Quotation Day as of 11:00 a.m. in   respect of LIBOR and as of 11.00 a.m. (Brussels time) in respect of   EURIBOR
    	
 
    	
Quotation Day as of 11:00 a.m.
    	
 
    	
Quotation Day as of 11:00 a.m.
    

 

“U” =                                       date of utilisation

 

“U - X”                              = X Business Days prior to date of utilisation

 

170

 

Schedule 11

 

Form of Increase Confirmation

 

To:                             · as Agent, and · as [Company], for and on behalf of each Obligor

 

From:               [the  Increase Lender] (Increase Lender)

 

Dated:

 

Luxfer Holdings PLC - Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to the Facilities Agreement and to the Intercreditor Deed (as defined in the Facilities Agreement).  This agreement (Agreement) shall take effect as an Increase Confirmation for the purpose of the Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed). Terms defined in the Facilities 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 Facilities Agreement.

 

3                                         The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the schedule (Relevant Commitment) as if it was an Original Lender under the Facilities Agreement.

 

4                                         The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (Increase Date) is ·.

 

5                                         On the Increase Date, the Increase Lender becomes:

 

(a)                                 party to the relevant Finance Documents (other than the Intercreditor Deed) as a Lender; and

 

(b)                                 party to the Intercreditor Deed as a Senior Lender.

 

6                                         The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of clause  36.2 (Addresses) are set out in the schedule.

 

7                                         The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations referred to in clause 2.2(f) (Increase).

 

8                                         The Increase Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender (other than a Treaty Lender);]

 

(b)                                 [a Treaty Lender;]

 

(c)                                  [not a Qualifying Lender]

 

9                                         [The Increase Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

(a)                                 a company resident in the United Kingdom for United Kingdom tax purposes; or

 

171

 

(b)                                 a partnership each member of which is:

 

(i)                                   a company so resident in the United Kingdom; or

 

(ii)                                a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

(c)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]

 

10                                  [The Increase Lender confirms (for the benefit of the Agent and without liability to any Obligor)  that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme (reference number ·) and is tax resident in ·(xiv), so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and notifies the Company that:

 

(a)                                 each Borrower which is a Party as a Borrower as at the Transfer Date must, to the extent that the New Lender becomes a Lender under the Facility which is made available to that Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of the Transfer Date; and

 

(b)                                 each Additional Borrower which becomes an Additional Borrower after the Transfer Date must, to the extent that the New Lender is a Lender under the Facility which is made available to that Additional Borrower pursuant to clause 2.1 (The Facility) of the Facilities Agreement, make an application to HM Revenue & Customs under form DTTP2 within 30 days of becoming an Additional Borrower(xv).]

 

11                                  The Increase Lender confirms that it is not a Sponsor Affiliate.

 

12                                  We refer to clause · (Creditor/Agent Accession Undertaking) of the Intercreditor Deed:

 

In consideration of the Increase Lender being accepted as a Senior Lender for the purposes of the Intercreditor Deed (and as defined in the Intercreditor Deed), the Increase Lender confirms that, as from the Increase Date, it intends to be party to the Intercreditor Deed as a Senior Lender, and undertakes to perform all the obligations expressed in the Intercreditor Deed to be assumed by a Senior Lender and agrees that it shall be bound by all the provisions of the Intercreditor Deed, as if it had been an original party to the Intercreditor Deed.

 

13                                 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.

 

14                                  This Agreement [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.

 

(xiv)                       Insert jurisdiction of tax residence

 

(xv)                          This confirmation must be included if the Increase Lender holds a passport under the HRMC DT Treaty Passport scheme and wishes that scheme to apply to the Facilities Agreement.

 

172

 

15                                  This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

173

 

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 Facilities Agreement and as a Creditor/Agent Accession Undertaking for the purposes of the Intercreditor Deed by the Agent and the Increase Date is confirmed as ·.

 

	
Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    

 

174

 

Schedule 12

 

Forms of Notifiable Debt Purchase Transaction Notice

 

Part 1 - Form of Notice on Entering into Notifiable Debt Purchase Transaction

 

To:                             · as Agent

 

From:               [The Lender]

 

Dated:

 

Luxfer Holdings PLC — Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to clause 29.2(b) (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates) of the Facilities Agreement.  Terms defined in the Facilities Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2                                         We have entered into a Notifiable Debt Purchase Transaction.

 

3                                         The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment
    	
 
    	
Amount of our Commitment to   which Notifiable Debt Purchase Transaction relates (Base Currency)
    
	
 
    	
 
    	
 
    
	
Commitment
    	
 
    	
[insert   amount (of that Commitment) to which the relevant Debt Purchase Transaction   applies](xvi)
    

 

[Lender]

 

By:

 

(xvi)                       Delete as applicable.

 

175

 

Part 2 - Form of Notice on Termination of Notifiable Debt Purchase Transaction /
 Notifiable Debt Purchase Transaction ceasing to be with Sponsor Affiliate

 

To:                             · as Agent

 

From:               [The Lender]

 

Dated:

 

[Company] — Senior Facilities Agreement dated · (Facilities Agreement)

 

1                                         We refer to clause 29.2(c) (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates) of the Facilities Agreement.  Terms defined in the Facilities Agreement have the same meaning in this notice unless given a different meaning in this notice.

 

2                                         A Notifiable Debt Purchase Transaction which we entered into and which we notified you of in a notice dated · has [terminated]/[ceased to be with a Sponsor Affiliate]. (xvii)

 

3                                         The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

 

	
Commitment
    	
Amount of our Commitment to   which Notifiable Debt Purchase Transaction relates (Base Currency)
    
	
 
    	
 
    
	
Commitment
    	
[insert   amount (of that Commitment) to which the relevant Debt Purchase Transaction   applies] (xviii)
    

 

[Lender]

 

By:

 

(xvii)       Delete as applicable.

 

(xviii)      Delete as applicable.

 

176

 

NOTICE DETAILS

 

THE COMPANY

 

LUXFER HOLDINGS PLC

 

	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    

 

 

177

 

	
THE ORIGINAL   BORROWERS
    
	
 
    
	
LUXFER   HOLDINGS PLC
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    
	
BA   HOLDINGS, INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER   GROUP LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
LUXFER   GROUP 2000 LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
MEL   CHEMICALS INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    

 

178

 

	
MAGNESIUM   ELEKTRON NORTH AMERICA, INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    

 

179

 

	
THE ORIGINAL   GUARANTORS
    
	
 
    	
 
    
	
LUXFER   HOLDINGS PLC
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
BA   HOLDINGS, INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER   GROUP LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER   GROUP 2000 LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
MEL   CHEMICALS INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    

 

180

 

	
MAGNESIUM   ELEKTRON NORTH AMERICA, INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER   GAS CYLINDERS LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER GROUP SERVICES LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
MAGNESIUM ELEKTRON LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER OVERSEAS HOLDINGS   LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    

 

181

 

	
LUXFER GAS CYLINDERS CHINA   HOLDINGS LIMITED
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
LUXFER INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
HART METALS, INC.
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
READE MANUFACTURING COMPANY
    
	
 
    	
 
    
	
Address:
    	
Anchorage Gateway, 5 Anchorage Quay, Salford,   M50 3XE
    
	
 
    	
 
    
	
Fax:
    	
0870 1911 492
    
	
 
    	
 
    
	
Attention:
    	
Company Secretary of Luxfer Holdings PLC
    

 

182

 

	
THE ARRANGERS
    
	
 
    
	
LLOYDS   TSB BANK PLC
    
	
 
    	
 
    
	
Address:
    	
10 Gresham Street, London EC2V 7AE
    
	
 
    	
 
    
	
Fax:
    	
0207 158 3198
    
	
 
    	
 
    
	
Attention:
    	
Paul Foster
    
	
 
    	
 
    
	
 
    
	
CLYDESDALE   BANK PLC (TRADING AS YORKSHIRE BANK)
    
	
 
    	
 
    
	
Address:
    	
Yorkshire Bank, 58 Spring Gardens, Manchester   M2 1YB
    
	
 
    	
 
    
	
Fax:
    	
0161 832 5187
    
	
 
    	
 
    
	
Attention:
    	
Simon Atkinson
    

 

183

 

	
THE ORIGINAL   LENDERS
    
	
 
    
	
LLOYDS   TSB BANK PLC
    
	
 
    	
 
    
	
Address:
    	
8th Floor, 40 Spring Gardens, Manchester M2   1EN
    
	
 
    	
 
    
	
Fax:
    	
0161 227 4358
    
	
 
    	
 
    
	
Attention:
    	
Paul Foster/Victoria Daly
    
	
 
    	
 
    
	
 
    	
 
    
	
CLYDESDALE BANK PLC (TRADING AS   YORKSHIRE BANK)
    
	
 
    	
 
    
	
Address:
    	
Yorkshire Bank, 58 Spring Gardens, Manchester   M2 1YB
    
	
 
    	
 
    
	
Fax:
    	
0161 832 5187
    
	
 
    	
 
    
	
Attention:
    	
Simon Atkinson:
    
	
 
    	
 
    
	
 
    	
 
    
	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
Address:
    	
450 B Street, Suite 1500, San Diego, CA   92101-8001
    
	
 
    	
 
    
	
Fax:
    	
+ 1.619.515.5553
    
	
 
    	
 
    
	
Attention:
    	
Aaron Marks
    

 

184

 

	
THE ORIGINAL   ANCILLARY LENDERS
    
	
 
    
	
LLOYDS   TSB BANK PLC
    
	
 
    	
 
    
	
Address:
    	
8th Floor, 40 Spring Gardens, Manchester M2   1EN
    
	
 
    	
 
    
	
Fax:
    	
0161 227 4358
    
	
 
    	
 
    
	
Attention:
    	
Paul Foster/Victoria Daly
    
	
 
    	
 
    
	
 
    	
 
    
	
CLYDESDALE   BANK PLC (TRADING AS YORKSHIRE BANK)
    
	
 
    	
 
    
	
Address:
    	
Yorkshire Bank, 58 Spring Gardens, Manchester   M2 1YB
    
	
 
    	
 
    
	
Fax:
    	
0161 832 5187
    
	
 
    	
 
    
	
Attention:
    	
Simon Atkinson
    
	
 
    	
 
    
	
 
    	
 
    
	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
Address:
    	
450 B Street, Suite 1500, San Diego, CA   92101-8001
    
	
 
    	
 
    
	
Fax:
    	
+ 1.619.515.5553
    
	
 
    	
 
    
	
Attention:
    	
Aaron Marks
    

 

185

 

	
THE AGENT
    
	
 
    
	
LLOYDS   TSB BANK PLC
    
	
 
    	
 
    
	
For Operational Duties (such as Drawdowns, Interest Rate Fixing,   Interest/fee calculations and payments)
    
	
 
    	
 
    
	
Address:
    	
CityMark, 150 Fountainbridge, Edinburgh EH3   9PE
    
	
 
    	
 
    
	
Fax:
    	
0207 158 3204
    
	
 
    	
 
    
	
Attention:
    	
Wholesale Loans Servicing Agency Operations
    
	
 
    	
 
    
	
For Non-Operational Matters (such as documentation, covenant   compliance, amendments and waivers etc)
    
	
 
    	
 
    
	
Address:
    	
10 Gresham Street, London EC2V 7AE
    
	
 
    	
 
    
	
Fax:
    	
0207 158 3198
    
	
 
    	
 
    
	
Attention:
    	
Wholesale Loans Agency
    

 

186Exhibit 4.2

 

Conformed Copy

 

 

 

EXECUTION VERSION

 

BA HOLDINGS, INC.

 

US$65,000,000

 

SENIOR NOTES DUE JUNE 15, 2018

 

 

NOTE PURCHASE AGREEMENT

 

 

Dated May 13, 2011

 

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
AUTHORIZATION   OF NOTES; GUARANTEES
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
SALE   AND PURCHASE OF NOTES
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
CLOSING
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
CONDITIONS   TO CLOSING
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.1.
    	
Representations   and Warranties
    	
 
    	
2
    
	
 
    	
4.2.
    	
Performance;   No Default
    	
 
    	
3
    
	
 
    	
4.3.
    	
Compliance   Certificates
    	
 
    	
3
    
	
 
    	
4.4.
    	
Opinions   of Counsel
    	
 
    	
4
    
	
 
    	
4.5.
    	
Purchase   Permitted by Applicable Law, etc.
    	
 
    	
4
    
	
 
    	
4.6.
    	
Sale   of Other Notes
    	
 
    	
5
    
	
 
    	
4.7.
    	
Payment   of Special Counsel Fees
    	
 
    	
5
    
	
 
    	
4.8.
    	
Private   Placement Number
    	
 
    	
5
    
	
 
    	
4.9.
    	
Repayment   of Existing Notes and ABL Facility
    	
 
    	
5
    
	
 
    	
4.10.
    	
English   Guarantee Agreements
    	
 
    	
6
    
	
 
    	
4.11.
    	
Intercreditor   Deed
    	
 
    	
6
    
	
 
    	
4.12.
    	
[Reserved.]
    	
 
    	
6
    
	
 
    	
4.13.
    	
Insurance
    	
 
    	
6
    
	
 
    	
4.14.
    	
Security   Searches and Releases
    	
 
    	
7
    
	
 
    	
4.15.
    	
Base   Case Model
    	
 
    	
7
    
	
 
    	
4.16.
    	
[Reserved]
    	
 
    	
7
    
	
 
    	
4.17.
    	
Funding   Instructions
    	
 
    	
7
    
	
 
    	
4.18.
    	
Payment   of Structuring Fee; Delayed Delivery Fee
    	
 
    	
7
    
	
 
    	
4.19.
    	
Funds   Flow Statement
    	
 
    	
8
    
	
 
    	
4.20.
    	
Hedging   Letter
    	
 
    	
8
    
	
 
    	
4.21.
    	
[Reserved.]
    	
 
    	
8
    
	
 
    	
4.22.
    	
Cross   Receipt
    	
 
    	
8
    
	
 
    	
4.23.
    	
Foreign   Corrupt Practices Act Letter
    	
 
    	
8
    
	
 
    	
4.24.
    	
Bank   Facilities Agreement
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
REPRESENTATIONS   AND WARRANTIES OF THE OBLIGORS
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.1.
    	
Status
    	
 
    	
9
    
	
 
    	
5.2.
    	
Binding   Obligations
    	
 
    	
9
    
	
 
    	
5.3.
    	
Non-conflict   with Other Obligations
    	
 
    	
9
    
	
 
    	
5.4.
    	
Power   and Authority
    	
 
    	
9
    
	
 
    	
5.5.
    	
Validity   and Admissibility in Evidence
    	
 
    	
9
    
	
 
    	
5.6.
    	
Governing   Law and Enforcement
    	
 
    	
10
    
	
 
    	
5.7.
    	
Insolvency
    	
 
    	
10
    
	
 
    	
5.8.
    	
No   Filing or Stamp Taxes
    	
 
    	
11
    
	
 
    	
5.9.
    	
Deduction   of Tax
    	
 
    	
11
    
	
 
    	
5.10.
    	
No   Default
    	
 
    	
11
    
	
 
    	
5.11.
    	
No   Misleading Information
    	
 
    	
11
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.12.
    	
Original   Financial Statements
    	
 
    	
12
    
	
 
    	
5.13.
    	
No   Proceedings Pending or Threatened
    	
 
    	
13
    
	
 
    	
5.14.
    	
No   Breach of Laws
    	
 
    	
13
    
	
 
    	
5.15.
    	
Environmental   Laws
    	
 
    	
13
    
	
 
    	
5.16.
    	
Taxation
    	
 
    	
13
    
	
 
    	
5.17.
    	
Security   and Financial Indebtedness
    	
 
    	
14
    
	
 
    	
5.18.
    	
Ranking
    	
 
    	
14
    
	
 
    	
5.19.
    	
Good   Title to Assets
    	
 
    	
14
    
	
 
    	
5.20.
    	
Legal   and Beneficial Ownership
    	
 
    	
14
    
	
 
    	
5.21.
    	
Shares
    	
 
    	
14
    
	
 
    	
5.22.
    	
Intellectual   Property
    	
 
    	
14
    
	
 
    	
5.23.
    	
Group   Structure Chart
    	
 
    	
15
    
	
 
    	
5.24.
    	
Obligors
    	
 
    	
15
    
	
 
    	
5.25.
    	
Accounting   Reference Date
    	
 
    	
16
    
	
 
    	
5.26.
    	
Centre   of Main Interests and Establishments
    	
 
    	
16
    
	
 
    	
5.27.
    	
Dormant   Companies
    	
 
    	
16
    
	
 
    	
5.28.
    	
Pensions
    	
 
    	
16
    
	
 
    	
5.29.
    	
No   Adverse Consequences
    	
 
    	
16
    
	
 
    	
5.30.
    	
U.S.   Regulations
    	
 
    	
17
    
	
 
    	
5.31.
    	
Sanctions
    	
 
    	
19
    
	
 
    	
5.32.
    	
Private   Offering
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
REPRESENTATIONS   OF THE PURCHASERS
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.1.
    	
Purchase   for Investment
    	
 
    	
20
    
	
 
    	
6.2.
    	
Source   of Funds
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
INFORMATION   AS TO THE OBLIGORS
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.1.
    	
Financial   and Business Information
    	
 
    	
22
    
	
 
    	
7.2.
    	
Other   Requirements as to Financial Statements; Officer’s Certificate
    	
 
    	
24
    
	
 
    	
7.3.
    	
Access
    	
 
    	
25
    
	
 
    	
7.4.
    	
Limitation   on Disclosure Obligation
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
PAYMENT   AND PREPAYMENT OF THE NOTES
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.1.
    	
Maturity
    	
 
    	
26
    
	
 
    	
8.2.
    	
Optional   Prepayments with Make-Whole Amount
    	
 
    	
26
    
	
 
    	
8.3.
    	
Allocation   of Partial Prepayments
    	
 
    	
26
    
	
 
    	
8.4.
    	
Maturity;   Surrender, etc.
    	
 
    	
26
    
	
 
    	
8.5.
    	
Purchase   of Notes
    	
 
    	
27
    
	
 
    	
8.6.
    	
Make-Whole   Amount
    	
 
    	
27
    
	
 
    	
8.7.
    	
Change   of Control Prepayment
    	
 
    	
28
    
	
 
    	
8.8.
    	
Disposal   and Insurance Prepayments
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
COVENANTS
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.1.
    	
Financial   Covenants
    	
 
    	
31
    

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.
    	
Authorizations
    	
 
    	
32
    
	
 
    	
9.3.
    	
Compliance   with Laws
    	
 
    	
32
    
	
 
    	
9.4.
    	
Environmental   Compliance
    	
 
    	
32
    
	
 
    	
9.5.
    	
Environmental   Claims
    	
 
    	
33
    
	
 
    	
9.6.
    	
Taxation
    	
 
    	
33
    
	
 
    	
9.7.
    	
Merger
    	
 
    	
33
    
	
 
    	
9.8.
    	
Change   of Business
    	
 
    	
33
    
	
 
    	
9.9.
    	
Acquisitions
    	
 
    	
33
    
	
 
    	
9.10.
    	
Joint   Ventures
    	
 
    	
34
    
	
 
    	
9.11.
    	
Preservation   of Assets
    	
 
    	
34
    
	
 
    	
9.12.
    	
Pari   Passu Ranking
    	
 
    	
34
    
	
 
    	
9.13.
    	
Negative   Pledge
    	
 
    	
34
    
	
 
    	
9.14.
    	
Disposals
    	
 
    	
35
    
	
 
    	
9.15.
    	
Arm’s   Length Basis
    	
 
    	
35
    
	
 
    	
9.16.
    	
Loans   or Credit
    	
 
    	
36
    
	
 
    	
9.17.
    	
No   Guarantees or Indemnities
    	
 
    	
36
    
	
 
    	
9.18.
    	
Dividends   and Share Redemption
    	
 
    	
36
    
	
 
    	
9.19.
    	
Bank   Facilities Agreement
    	
 
    	
37
    
	
 
    	
9.20.
    	
Financial   Indebtedness
    	
 
    	
37
    
	
 
    	
9.21.
    	
Share   Capital
    	
 
    	
37
    
	
 
    	
9.22.
    	
Insurance
    	
 
    	
37
    
	
 
    	
9.23.
    	
Pensions
    	
 
    	
37
    
	
 
    	
9.24.
    	
Intellectual   Property
    	
 
    	
38
    
	
 
    	
9.25.
    	
Transaction   Documents
    	
 
    	
39
    
	
 
    	
9.26.
    	
Financial   Assistance
    	
 
    	
40
    
	
 
    	
9.27.
    	
Group   Bank Accounts
    	
 
    	
40
    
	
 
    	
9.28.
    	
Treasury   Transactions
    	
 
    	
40
    
	
 
    	
9.29.
    	
Auditors
    	
 
    	
40
    
	
 
    	
9.30.
    	
Further   Assurance
    	
 
    	
40
    
	
 
    	
9.31.
    	
Guarantors
    	
 
    	
40
    
	
 
    	
9.32.
    	
Anti-Terrorism   Laws
    	
 
    	
43
    
	
 
    	
9.33.
    	
ERISA
    	
 
    	
44
    
	
 
    	
9.34.
    	
Margin   Regulation
    	
 
    	
44
    
	
 
    	
9.35.
    	
U.S.   Regulation
    	
 
    	
44
    
	
 
    	
9.36.
    	
Favored   Lender Status
    	
 
    	
44
    
	
 
    	
9.37.
    	
Year-end
    	
 
    	
45
    
	
 
    	
9.38.
    	
Compliance   with Hedging Letter
    	
 
    	
45
    
	
 
    	
9.39.
    	
Replacement   Agent for Service of Process
    	
 
    	
45
    
	
 
    	
9.40.
    	
Conditions   Subsequent
    	
 
    	
46
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
EVENTS   OF DEFAULT
    	
 
    	
46
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
REMEDIES   ON DEFAULT, ETC.
    	
 
    	
51
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.1.
    	
Acceleration
    	
 
    	
51
    

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.2.
    	
Other   Remedies
    	
 
    	
52
    
	
 
    	
11.3.
    	
Rescission
    	
 
    	
52
    
	
 
    	
11.4.
    	
No   Waivers or Election of Remedies, Expenses, etc.
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
TAX   INDEMNIFICATION
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
GUARANTEE   AND OTHER RIGHTS AND UNDERTAKINGS
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
13.1.
    	
Guarantee
    	
 
    	
56
    
	
 
    	
13.2.
    	
Obligations   Absolute
    	
 
    	
58
    
	
 
    	
13.3.
    	
Waiver
    	
 
    	
58
    
	
 
    	
13.4.
    	
Obligations   Unimpaired
    	
 
    	
59
    
	
 
    	
13.5.
    	
Subrogation   and Subordination
    	
 
    	
59
    
	
 
    	
13.6.
    	
Reinstatement   of Guarantee
    	
 
    	
61
    
	
 
    	
13.7.
    	
Term   of Guarantee
    	
 
    	
61
    
	
 
    	
13.8.
    	
Information   Regarding the Issuer
    	
 
    	
61
    
	
 
    	
13.9.
    	
Further   Assurances
    	
 
    	
61
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
REGISTRATION;   EXCHANGE; SUBSTITUTION OF NOTES
    	
 
    	
61
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
14.1.
    	
Registration   of Notes
    	
 
    	
61
    
	
 
    	
14.2.
    	
Transfer   and Exchange of Notes
    	
 
    	
62
    
	
 
    	
14.3.
    	
Replacement   of Notes
    	
 
    	
62
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
PAYMENTS   ON NOTES
    	
 
    	
63
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
15.1.
    	
Place   of Payment
    	
 
    	
63
    
	
 
    	
15.2.
    	
Home   Office Payment
    	
 
    	
63
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
EXPENSES,   ETC.
    	
 
    	
63
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
16.1.
    	
Transaction   Expenses
    	
 
    	
63
    
	
 
    	
16.2.
    	
Certain   Taxes
    	
 
    	
64
    
	
 
    	
16.3.
    	
Survival
    	
 
    	
64
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
SURVIVAL   OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
    	
 
    	
64
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
AMENDMENT   AND WAIVER
    	
 
    	
65
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
18.1.
    	
Requirements
    	
 
    	
65
    
	
 
    	
18.2.
    	
Solicitation   of Holders of Notes
    	
 
    	
65
    
	
 
    	
18.3.
    	
Binding   Effect, etc.
    	
 
    	
66
    
	
 
    	
18.4.
    	
Notes   Held by Obligors, etc.
    	
 
    	
66
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
NOTICES;   ENGLISH LANGUAGE
    	
 
    	
66
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
REPRODUCTION   OF DOCUMENTS
    	
 
    	
67
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
CONFIDENTIAL   INFORMATION
    	
 
    	
67
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
SUBSTITUTION   OF PURCHASER
    	
 
    	
68
    

 

iv

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
MISCELLANEOUS
    	
 
    	
69
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
23.1.
    	
Successors   and Assigns
    	
 
    	
69
    
	
 
    	
23.2.
    	
Payments   Due on Non-Business Days
    	
 
    	
69
    
	
 
    	
23.3.
    	
Accounting   Terms; IAS 39
    	
 
    	
69
    
	
 
    	
23.4.
    	
Severability
    	
 
    	
70
    
	
 
    	
23.5.
    	
Construction,   etc.
    	
 
    	
70
    
	
 
    	
23.6.
    	
Counterparts
    	
 
    	
70
    
	
 
    	
23.7.
    	
Governing   Law
    	
 
    	
70
    
	
 
    	
23.8.
    	
Jurisdiction   and Process; Waiver of Jury Trial
    	
 
    	
71
    
	
 
    	
23.9.
    	
Obligation   to Make Payment in U.S. Dollars
    	
 
    	
72
    
	
 
    	
23.10.
    	
Tax   Forms
    	
 
    	
72
    

 

v

 

	
Schedule   A
    	
—
    	
Information   Relating to Purchasers
    
	
 
    	
 
    	
 
    
	
Schedule   B
    	
—
    	
Defined   Terms
    
	
 
    	
 
    	
 
    
	
Schedule   C
    	
—
    	
Original   Subsidiary Guarantors
    
	
 
    	
 
    	
 
    
	
Exhibit 1(a)
    	
—
    	
Form of   Senior Note due June 15, 2018
    
	
 
    	
 
    	
 
    
	
Exhibit 1(b)(i)
    	
—
    	
Form of   English Guarantee Agreement
    
	
 
    	
 
    	
 
    
	
Exhibit 1(b)(ii)
    	
—
    	
Form of   Joinder Agreement
    
	
 
    	
 
    	
 
    
	
Exhibit 4.4(a)(i)
    	
—
    	
Form of   Opinion of U.S. Special Counsel for the Obligors
    
	
 
    	
 
    	
 
    
	
Exhibit 4.4(a)(ii)
    	
—
    	
Form of   Opinion of English Special Counsel for the Obligors
    
	
 
    	
 
    	
 
    
	
Exhibit 4.4(a)(iii)
    	
—
    	
Form of   Opinion of New Jersey Special Counsel for the Obligors
    
	
 
    	
 
    	
 
    
	
Exhibit 4.4(b)(i)
    	
—
    	
Form of   Opinion of U.S. Special Counsel for the Purchasers
    
	
 
    	
 
    	
 
    
	
Exhibit 4.4(b)(ii)
    	
—
    	
Form of   Opinion of English Special Counsel for the Purchasers
    
	
 
    	
 
    	
 
    
	
Exhibit 4.11
    	
—
    	
Form of   Intercreditor Deed
    
	
 
    	
 
    	
 
    
	
Exhibit 4.18
    	
—
    	
Commitment   Letter
    
	
 
    	
 
    	
 
    
	
Exhibit 4.20
    	
—
    	
Form of   Hedging Letter
    
	
 
    	
 
    	
 
    
	
Exhibit 7.2
    	
—
    	
Form of   Compliance Certificate
    
	
 
    	
 
    	
 
    
	
Schedule   5.11
    	
—
    	
Disclosure   Documents
    
	
 
    	
 
    	
 
    
	
Schedule   5.23
    	
—
    	
Group   Structure Chart
    

 

vi

 

BA HOLDINGS, INC.

 

Anchorage Gateway

5 Anchorage Quay

Salford, M50 3XE

United Kingdom

 

Senior Notes due June 15, 2018

 

May 13, 2011

 

To Each of the Purchasers Listed in

Schedule A Hereto:

 

Ladies and Gentlemen:

 

Each of BA Holdings, Inc., a Delaware corporation (the “Issuer” or any successor that becomes such in the manner prescribed in Section 9.7), Luxfer Holdings PLC (Registered No. 3690830), a public limited company organized under the laws of England and Wales (the “Parent Guarantor”), and each of the parties listed in Schedule C (each an “Original Subsidiary Guarantor” and collectively the “Original Subsidiary Guarantors”), agrees with each of the purchasers whose names appear at the end hereof (each a “Purchaser” and collectively the “Purchasers”) as follows:

 

1.                                      AUTHORIZATION OF NOTES; GUARANTEES.

 

(a)           The Issuer will authorize the issue and sale of US$65,000,000 aggregate principal amount of its Senior Notes due June 15, 2018 (the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 15).  The Notes shall be substantially in the form set out in Exhibit 1(a).  Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

 

(b)           The payment by the Issuer of all amounts due with respect to the Notes shall be absolutely and unconditionally guaranteed by (i) each of the Original Subsidiary Guarantors that is a U.S. Guarantor pursuant to the Unconditional Guarantee contained in Section 13, (ii) the Parent Guarantor, which owns all of the outstanding equity interests of the Issuer, and each of the Original Subsidiary Guarantors that is an English Guarantor pursuant to a Guarantee Agreement in substantially the form of Exhibit 1(b)(i) (each an “English Guarantee Agreement”), and (iii) each Subsidiary (each an “Additional Subsidiary Guarantor”) which, after the date of this Agreement, becomes a party hereto pursuant to a Joinder Agreement in substantially the form of Exhibit 1(b)(ii) (each a “Joinder Agreement”) and guarantees the Notes pursuant to such Joinder Agreement, an English Guarantee Agreement or a guarantee agreement in form and substance satisfactory to the Required Holders, but shall exclude at such time any Subsidiary

 

 

theretofore released from its obligations as a Subsidiary Guarantor pursuant to Section 9.31.

 

2.                                      SALE AND PURCHASE OF NOTES.

 

Subject to the terms and conditions of this Agreement, the Issuer will issue and sell to each Purchaser and each Purchaser will purchase from the Issuer, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

 

3.                                      CLOSING.

 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Bingham McCutchen (London) LLP, 41 Lothbury, London, England, at 10:00 A.M., local time, at a closing (the “Closing”) on June 15, 2011 or on such other Business Day thereafter on or prior to June 30, 2011 as may be agreed upon by the Obligors and the Purchasers.  At the Closing the Issuer will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least US$100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Issuer or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Issuer to the account identified by the Issuer in the Funding Instructions (unless agreed by the Purchasers at least 5 Business Days prior to Closing, such account must be a bank account in a bank located in the United States and it being understood by the parties hereto that irrespective of the time of Closing no such wire can be initiated by a Purchaser until the opening of business in the United States for both such Purchaser and its bank).  If at the Closing the Issuer shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.

 

4.                                      CONDITIONS TO CLOSING.

 

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:

 

4.1.                            Representations and Warranties.

 

The Major Representations shall be correct at the time of the Closing.

 

2

 

4.2.                            Performance; No Default.

 

Each Obligor shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.30(b)) no Major Default shall have occurred and be continuing.  Nothing in this Section 4.2 operates as a waiver of any Event of Default or will affect the rights of the holders of Notes in respect of any outstanding Event of Default upon purchase of the Notes, irrespective of whether that Event of Default occurred prior to the purchase of Notes or not, and the holders of Notes may exercise all or any of their rights and remedies set out in this Agreement in respect of any continuing Event of Default upon purchase of the Notes (including without limitation their rights under Section 11.1).

 

4.3.                            Compliance Certificates.

 

(a)           Officer’s Certificates.  Each Obligor shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing, in Agreed Form, certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled.

 

(b)           Secretary’s or Director’s Certificates.

 

(i)            Each Obligor shall have delivered to such Purchaser a certificate of its Secretary or an Assistant Secretary or a director or other appropriate person, dated the date of the Closing, certifying (A) as to the resolutions of the board of directors and shareholders of such Obligor attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Note Documents to which it is a party, (B) constitutive documents of such Obligor (and in respect of each U.S. Obligor as certified by the applicable regulatory authority), and (C) to the incumbency and specimen signature of each person authorized by the resolutions referred to in clause (A) above to execute the Note Documents, all in Agreed Form.

 

(ii)           The Parent Guarantor shall have delivered to such Purchaser a certificate of a director, dated the date of the Closing:

 

(A)          confirming that issuing or guaranteeing or securing, as appropriate, the Notes would not cause any borrowing, guarantee, Security or similar limit binding on the Parent Guarantor, the Issuer or any Original Subsidiary Guarantor to be exceeded;

 

(B)          attaching thereto a copy of the Bank Facilities Agreement and each other Finance Document (as defined in the Bank Facilities Agreement), all in Agreed Form, and certifying that (1) each such document copy is correct, complete and in full force and effect and has not been amended, novated, supplemented, superseded or terminated as at the date of the Closing and (2) the commitments under the Bank Facilities Agreement are available to be drawn as at the date of the Closing;

 

3

 

(C)          attaching thereto a copy of the Original Financial Statements of each Obligor and certifying that each such document copy is true;

 

(D)          specifying each member of the Group which is a Dormant Subsidiary as at the date of Closing together with certified copies (certified by such director to be a true copy) of the last audited accounts of each such Dormant Subsidiary;

 

(E)           specifying each member of the Group which is a Material Company as at the date of Closing;

 

(F)           confirming that such irrevocable prepayment notice in respect of the Existing Notes was served on or prior to the date falling five Business Days after the date of this Agreement; and

 

(G)          confirming that, as a result of the sale of the Notes and the utilization of the facilities available under the Bank Facilities Agreement on the date of the Closing (or, in the case of the Bank Facilities Agreement, on the day immediately following the day of Closing), the Obligors have available to them a sum which is sufficient to repay the Existing Notes and the ABL Facility in full, and that such sum has been applied or will, simultaneously with the receipt of the proceeds of the Bank Facilities Agreement, be applied to repay the Existing Notes and the ABL Facility in full;

 

in Agreed Form.

 

4.4.                            Opinions of Counsel.

 

Such Purchaser shall have received opinions, dated the date of the Closing (a) from Fried, Frank, Harris, Shriver & Jacobson LLP, U.S. counsel for the Obligors, Dickson Minto W.S., English counsel for the Obligors, and Montalbano, Condon & Frank, P.C., New Jersey counsel for the Obligors, in the respective forms set forth in Exhibits 4.4(a)(i), 4.4(a)(ii) and 4.4(a)(iii), in each case without any changes from such forms attached hereto unless such changes have been approved by the Purchasers (and the Obligors hereby instruct their counsel to deliver such opinions to the Purchasers) and (b) from Bingham McCutchen LLP and Bingham McCutchen (London) LLP, the Purchasers’ U.S. and English special counsel, respectively, in connection with such transactions, substantially in the respective forms set forth in Exhibits 4.4(b)(i) and 4.4(b)(ii), or with such changes approved by the Purchasers.

 

4.5.                            Purchase Permitted by Applicable Law, etc.

 

On the date of the Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation,

 

4

 

Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

 

4.6.                            Sale of Other Notes.

 

Contemporaneously with the Closing the Issuer shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in Schedule A.

 

4.7.                            Payment of Special Counsel Fees.

 

Without limiting the provisions of Section 17.1, the Issuer shall have paid on or before the Closing the reasonable fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Issuer at least one Business Day prior to the Closing.

 

4.8.                            Private Placement Number.

 

A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

 

4.9.                                        Repayment of Existing Notes and ABL Facility.

 

Such Purchaser shall have received, in each case in Agreed Form:

 

(a)                                 Existing Notes —

 

(i)                                     On or before the date hereof, a copy of the irrevocable prepayment notices and related certificate in Agreed Form in respect of the Existing Notes signed by the Parent Guarantor, and

 

(ii)                                  evidence that the rating issued by Moody’s Investors Service Ltd. with respect to the Existing Notes shall have been extinguished; and

 

5

 

(b)                                 ABL Facility —

 

(i)                                     an executed copy of a lien termination agreement by and among the U.S. Obligors, Luxfer Group Limited and Bank of America, N.A., as security trustee, in respect of the ABL Facility, in Agreed Form and certified by a director of the Parent Guarantor as correct, complete and in full force and effect, and as not having been amended, novated, supplemented, superseded or terminated as at the date of the Closing,

 

(ii)                                  an executed copy of a Deed of Release between Bank of America N.A., as security trustee, and certain of the Obligors in respect of the ABL Facility, in Agreed Form and certified by a director of the Parent Guarantor as correct, complete and in full force and effect, and as not having been amended, novated, supplemented, superseded or terminated as at the date of the Closing, and

 

(iii)                               a copy of the cancellation notice served under the ABL Facility, certified by a director of the Parent Guarantor as correct, complete and in full force and effect.

 

4.10.                                 English Guarantee Agreements.

 

The Parent Guarantor and each of the Original Subsidiary Guarantors that is an English Guarantor shall have entered into an English Guarantee Agreement and such Purchaser shall have received an original copy of such agreement and it shall be in full force and effect.

 

4.11.                                 Intercreditor Deed.

 

Each of (a) the Parent Guarantor, the Issuer and the Original Subsidiary Guarantors, (b) the Bank Agent, (c) the security trustee, (d) Lloyds TSB Bank plc and Clydesdale Bank PLC (trading as Yorkshire Bank), as Arrangers, (e) the Bank Lenders, (f) Lloyds TSB Bank plc, Clydesdale Bank PLC (trading as Yorkshire Bank) and Bank of America, N.A., as Bilateral Lenders, and (g) the Purchasers shall have entered into the Intercreditor Deed, which shall be in the form set forth in Exhibit 4.11, and such Purchaser shall have received an original copy of the Intercreditor Deed and it shall be in full force and effect.

 

4.12.                                 [Reserved.]

 

4.13.                     Insurance.

 

Such Purchaser shall have received a letter from Marsh Ltd, as insurance broker for the Group, dated no earlier than the date of the Closing, listing the insurance policies of the Group and confirming that they are on risk and that the insurance for the Group at the date of the Closing covers appropriate risks for the business carried out by the Group and that such insurance complies with the terms of the Note Documents.

 

6

 

4.14.                     Security Searches and Releases.

 

(a)                                 Security Searches.  Such Purchaser shall have received copies of the results of the following searches dated within one week of the Closing:

 

(i)                                     a search at the Companies Court at the Royal Courts of Justice in London and at Companies House as at the date of Closing revealing no adverse entries against the Parent Guarantor, the Issuer or any Original Subsidiary Guarantor, and

 

(ii)                                  a Uniform Commercial Code search of the Secretary of State (or equivalent recording office) of the state of incorporation of each U.S. Obligor revealing no existing liens that do not constitute Permitted Security.

 

(b)                                 Security Releases.  Such Purchaser shall have received copies of:

 

(i)                                     releases in Agreed Form of any existing liens appearing on the results of the Uniform Commercial Code searches referred to in paragraph (a)(ii) above that do not constitute Permitted Security (other than Permitted Security identified in paragraph (h) of the definition of such term), and

 

(ii)                                  such release documents as are necessary to discharge and release all existing Security granted by each member of the Group other than Security falling within paragraphs (a) through (g), inclusive, of the definition of Permitted Security, and such release documents shall be in form and substance satisfactory to such Purchaser.

 

4.15.                     Base Case Model.

 

Such Purchaser shall have received a copy of the Base Case Model.

 

4.16.                     [Reserved].

 

4.17.                     Funding Instructions.

 

At least three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions (the “Funding Instructions”) signed by a Responsible Officer on letterhead of the Issuer designating the bank account for payment of the purchase price of the Notes in accordance with Section 3 including (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number and (c) the account name and number into which the purchase price for the Notes is to be deposited.

 

4.18.                     Payment of Structuring Fee; Delayed Delivery Fee.

 

(a)                                 Structuring Fee.  Without limiting the provisions of Section 16.1, the Issuer shall have paid to such Purchaser on or before the Closing, in immediately available funds, such Purchaser’s pro rata share of a fee in the aggregate amount of 

 

7

 

US$812,500 in consideration for the time, effort and expense involved in the preparation, negotiation and execution of this Agreement and the other Note Documents.

 

(b)                                 Delayed Delivery Fee.  In the event that the Closing does not occur on or before June 15, 2011, the Issuer shall pay on the date of the Closing the Delayed Delivery Fee (as defined in the Commitment Letter) in accordance with the terms of the Commitment Letter.

 

4.19.                     Funds Flow Statement.

 

Such Purchaser shall have received prior to the date of the Closing the Funds Flow Statement.

 

4.20.                     Hedging Letter.

 

Such Purchaser shall have received a hedging strategy letter (the “Hedging Letter”) in favor of the Purchasers in the form set forth in Exhibit 4.20.

 

4.21.                     [Reserved.]

 

4.22.                     Cross Receipt.

 

Such Purchaser shall have received a cross receipt with respect to the Purchasers’ receipt of the Notes and the Issuer’s receipt of payment in full for the Notes, which shall be executed by the Issuer and shall be in Agreed Form.

 

4.23.                     Foreign Corrupt Practices Act Letter.

 

Such Purchaser shall have received a copy of a letter from the Purchasers to the Bank Agent with respect to U.S. and non-U.S. anti-bribery and anti-corruption laws, including, but not limited to, the U.S. Foreign Corrupt Practices Act of 1977, which shall be executed by the Bank Agent and in Agreed Form.

 

4.24.                     Bank Facilities Agreement.

 

Each Purchaser shall have received an acknowledgement of the Bank Agent that (a) it has received an irrevocable Utilization Request (as defined in the Bank Facilities Agreement) requesting funds under the Facilities (as defined in the Bank Facilities Agreement) in an amount equal to or greater than the amount required from such Facilities pursuant to the Funds Flow Statement and (b) all conditions precedent to such Utilization Request have been satisfied.

 

5.                                     REPRESENTATIONS AND WARRANTIES OF THE OBLIGORS.

 

Each Obligor jointly and severally represents and warrants to each Purchaser that, as of the date of this Agreement and as of the date of the Closing:

 

8

 

5.1.                            Status.

 

(a)                                 It and each of its Subsidiaries is a limited liability corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation and, where legally applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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

 

5.2.                            Binding Obligations.

 

Subject to the Legal Reservations, the obligations expressed to be assumed by it in each Note Document to which it is a party are legal, valid, binding and enforceable obligations.

 

5.3.                            Non-conflict with Other Obligations.

 

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

 

(a)                                 any law or regulation applicable to it;

 

(b)                                 the constitutional documents of any member of the Group; or

 

(c)                                  any agreement or instrument binding upon it or any member of the Group or any of its or any member of the Group’s assets or constitute a default or termination event (however described) under any such agreement or instrument unless such conflict, default or termination event would not have or is not reasonably likely to have a Material Adverse Effect.

 

5.4.                            Power and Authority.

 

(a)                                 It has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of, the Note Documents to which it is or will be a party and the transactions contemplated by such Note Documents.

 

(b)                                 No limit on its powers will be exceeded as a result of the borrowing, grant of Security or giving of guarantees or indemnities contemplated by the Note Documents to which it is a party.

 

5.5.                            Validity and Admissibility in Evidence.

 

(a)                                 All Authorizations required:

 

9

 

(i)                                     to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Note Documents to which it is a party including, without limitation, any Authorizations required in connection with the obtaining of U.S. Dollars to make payments under this Agreement or the Notes and the payment of such U.S. Dollars to Persons resident in the United States of America; and

 

(ii)                                  to make the Note Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected and are in full force and effect except any Authorization referred to in Section 5.8.

 

(b)                                 All Authorizations necessary for the conduct of the business, trade and ordinary activities of the members of the Group have been obtained or effected and are in full force and effect if failure to obtain or effect those Authorizations has or is reasonably likely to have a Material Adverse Effect.

 

5.6.                            Governing Law and Enforcement.

 

(a)                                 The choice of governing law of the Note Documents will be recognized and enforced in its Relevant Jurisdictions.

 

(b)                                 Any judgment obtained in relation to a Note Document in the jurisdiction of the governing law of that Note Document will be recognized and enforced in its Relevant Jurisdictions.

 

5.7.                            Insolvency.

 

(a)                                 No:

 

(i)                                     corporate action, legal proceeding or other procedure or step described in Section 10(g)(i); or

 

(ii)                                  creditors’ process described in Section 10(h),

 

has been taken or, so far as it is aware, threatened in relation to a member of the Group.

 

(b)                                 No corporate action, legal proceeding or other procedure or step described in Section 10(g)(ii) has been taken or, so far as it is aware, threatened in relation to the Issuer or any other member of the Group incorporated in the United States of America.

 

(c)                                  None of the circumstances described in Section 10(f) applies to a member of the Group.

 

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5.8.                            No Filing or Stamp Taxes.

 

Under the laws of its Relevant Jurisdiction it is not necessary that the Note Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Note Documents or the transactions contemplated by the Note Documents except for those registrations specifically set out in any legal opinion delivered to the Purchasers pursuant to Section 4.4.

 

5.9.                            Deduction of Tax.

 

No liability for any Tax, directly or indirectly, imposed, assessed, levied or collected by or for the account of any Governmental Authority of the United Kingdom or any political subdivision thereof will be incurred by any Obligor or any holder of a Note as a result of the execution or delivery of any Note Document and no deduction or withholding in respect of Taxes imposed by or for the account of the United Kingdom or, to the knowledge of the Obligors, any other Taxing Jurisdiction, is required to be made from any payment by any Obligor under any Note Document except for any such liability, withholding or deduction imposed, assessed, levied or collected by or for the account of any such Governmental Authority of the United Kingdom arising out of circumstances described in clause (a), (b) or (c) of Section 12.

 

5.10.                     No Default.

 

(a)                                 No Default or Event of Default is continuing or is reasonably likely to result from the issuance of the Notes or the entry into, the performance of, or any transaction contemplated by, any Note Document.

 

(b)                                 No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (however described) 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 is reasonably likely to have a Material Adverse Effect.

 

5.11.                     No Misleading Information.

 

(a)                                 All factual information contained in the Note Documents and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Obligors in connection with the transactions contemplated hereby and identified in Schedule 5.11, the Original Financial Statements and the Information Memorandum (the Note Documents, such documents, certificates or other writings, the Original Financial Statements and the Information Memorandum delivered to each Purchaser prior to the date of this Agreement being referred to, collectively, as the “Disclosure Documents”) was true and accurate in all material respects as at the date of the relevant report or document containing the information or (as the case may be) as at the date the information is expressed to be given.

 

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(b)                                 The Base Case Model has been prepared in accordance with the Accounting Principles as applied to the Original Financial Statements of the Parent Guarantor, and the financial projections contained in the Base Case Model have been prepared on the basis of recent historical information, are fair and based on reasonable assumptions and have been approved by the board of directors of the Parent Guarantor.

 

(c)                                  Any financial projection or forecast contained in the Disclosure Documents has been prepared on the basis of recent historical information and on the basis of reasonable assumptions and was fair (as at the date of the relevant report or document containing the projection or forecast) and arrived at after careful consideration (it being acknowledged by the Purchasers that financial projections or forecasts are subject to uncertainties and contingencies and no representation or warranty is given that such financial projections or forecasts will be realized).

 

(d)                                 The expressions of opinion or intention provided by or on behalf of an Obligor for the purposes of the Disclosure Documents were made after careful consideration and (as at the date of the relevant report or document containing the expression of opinion or intention) were fair and based on reasonable grounds.

 

(e)                                  No event or circumstance has occurred or arisen and no information has been omitted from the Disclosure Documents and no information has been given or withheld that results in the information, opinions, intentions, forecasts or projections contained in the Disclosure Documents being untrue or misleading in any material respect.

 

(f)                                   All material information provided to a Purchaser by or on behalf of the Group on or before the date of the Closing and not superseded before that date (whether or not contained in the Disclosure Documents) is accurate and not misleading in any material respect and all projections provided to any Purchaser on or before the date of the Closing have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied.

 

(g)                                  All other written information provided by any Obligor to a Purchaser was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any material respect.

 

5.12.                     Original Financial Statements.

 

(a)                                 Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied.

 

(b)                                 Its unaudited Original Financial Statements fairly represent its financial condition and results of operations for the relevant period in accordance with the basis of preparation and Accounting Principles unless expressly disclosed to the Purchasers in writing to the contrary prior to the date of this Agreement.

 

(c)                                  Its audited Original Financial Statements give a true and fair view of its financial condition and results of operations during the relevant Financial Year.

 

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(d)                                 There has been no material adverse change in its assets, business or financial condition (or the assets, business or consolidated financial condition of the Group, in the case of the Parent Guarantor) since December 31, 2010.

 

(e)                                  The Original Financial Statements of the Parent Guarantor do not consolidate the results, assets or liabilities of any Person or business which does not form part of the Group (other than in respect of any joint venture) as at the date of the Closing.

 

5.13.                     No Proceedings Pending or Threatened.

 

(a)                                 No litigation, arbitration or administrative proceedings or investigations of, or before, any court, arbitral body or agency which, if adversely determined, are reasonably likely to result in liabilities to it or any of its Subsidiaries (whether actual or contingent) which has or is reasonably likely to have a Material Adverse Effect have (so far as it is aware) been started or threatened against it or any of its Subsidiaries.

 

(b)                                 No labor disputes are current or, so far as it is aware, threatened against any member of the Group which have or are reasonably likely to result in liabilities to it or any of its Subsidiaries which has or is reasonably likely to have a Material Adverse Effect.

 

5.14.                     No Breach of Laws.

 

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.

 

5.15.                     Environmental Laws.

 

(a)                                 It and each of its Subsidiaries is in compliance with Section 9.4 and, so far as it is aware, no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to result in a Material Adverse Effect.

 

(b)                                 No Environmental Claim has been commenced or, so far as it is aware, is threatened against any member of the Group where that claim has or is reasonably likely, if determined against that member of the Group, to result in a Material Adverse Effect.

 

(c)                                  The cost to the Group of compliance with Environmental Laws (including Environmental Permits) is, so far as it is aware, adequately provided for in the Base Case Model.

 

5.16.                     Taxation.

 

(a)                                 It is not (and none of its Subsidiaries is) materially 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.

 

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(b)                                 No claims or investigations are being, or are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect to Taxes such that a liability of, or claim against, any member of the Group which would have or is reasonably likely to have a Material Adverse Effect.

 

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

 

5.17.                     Security and Financial Indebtedness.

 

(a)                                 No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement.

 

(b)                                 No member of the Group has any Financial Indebtedness outstanding other than as permitted by this Agreement.

 

5.18.                     Ranking.

 

(a)                                 The Obligors’ payment obligations under the Note Documents will rank at least pari passu, without preference or priority, with the Obligors’ payment obligations under the Bank Facilities Agreement and the other Finance Documents (as defined in the Bank Facilities Agreement).

 

(b)                                 Any unsecured and unsubordinated claims of a holder against any Obligor under the Note Documents will rank at least pari passu with the claims of all of such Obligor’s other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

5.19.                     Good Title to Assets.

 

It and each of its Subsidiaries has a good, valid and marketable title to, or valid leases or licenses of, and all appropriate Authorizations to use, the assets necessary to carry on its business as presently conducted.

 

5.20.                     Legal and Beneficial Ownership.

 

It and each of its Subsidiaries is the sole legal and beneficial owner of the respective assets over which it purports to grant Security.

 

5.21.                     Shares.

 

There are no agreements in force which provide for the issue, allotment or transfer of, or grant any Person the right to call for the issue, allotment or transfer of, any share or loan capital of any member of the Group (including any option or right of pre-emption or conversion) other than pursuant to the Share Option Documents.

 

5.22.                     Intellectual Property.

 

It and each of its Subsidiaries:

 

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(a)                                 is the sole legal and beneficial owner of or has licensed to it on normal commercial terms all the Intellectual Property which is material in the context of its business and which is required by it in order to carry on its business as it is being conducted and as contemplated in the Base Case Model and where the Intellectual Property is licensed to it, that license has not been breached in any material respect or terminated by any party;

 

(b)                                 does not, in carrying on its businesses, infringe any Intellectual Property of any third party in any respect which has or is reasonably likely to have a Material Adverse Effect; and

 

(c)                                  has taken all formal or procedural actions (including payment of fees) required to maintain any Intellectual Property owned by it which is required by it in order to carry on its business as it is being conducted and as contemplated in the Base Case Model.

 

5.23.                     Group Structure Chart.

 

(a)                                 The group structure chart contained in Schedule 5.23 (the “Group Structure Chart”) is true, complete and accurate in all material respects and shows, as of the date of this Agreement and the date of the Closing, each member of the Group, including current name and company registration number, and its jurisdiction of incorporation and/or establishment.

 

(b)                                 No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than this Agreement, the Bank Facilities Agreement, the Existing Notes, the ABL Facility and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Parent Guarantor, the Issuer or any of their respective Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

 

5.24.                     Obligors.

 

(a)                                 Each Subsidiary of the Parent Guarantor incorporated in the United Kingdom (other than a Dormant Subsidiary, LGL 1996 Limited and Biggleswick Limited) and each Material Company (other than the French Subsidiary and the Czech Subsidiary) incorporated in any other jurisdiction is an Obligor on the date of the Closing.

 

(b)                                 The aggregate:

 

(i)                                     earnings before interest, tax and amortization (calculated on the same basis as EBITA) of the Obligors on the date of the Closing (calculated on an unconsolidated basis and excluding all unrealized intra-Group profits of any member of the Group) exceeds 75% of EBITA of the Group; and

 

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(ii)                                  gross assets of the Obligors on the date of the Closing (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the consolidated gross assets of the Group.

 

5.25.                     Accounting Reference Date.

 

The Accounting Reference Date of each member of the Group is December 31.

 

5.26.                     Centre of Main Interests and Establishments.

 

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

 

5.27.                     Dormant Companies.

 

There are no Dormant Subsidiaries other than:

 

(a)                                 BAL 1996 Limited; and

 

(b)                                 Mel Chemicals China Limited.

 

5.28.                     Pensions.

 

(a)                                 Except for the Defined Benefit Schemes:

 

(i)                                     neither it nor any of its Subsidiaries is or has at any time been an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993); and

 

(ii)                                  neither it nor any of its Subsidiaries is or has at any time been connected with or an associate of (as those terms are used in sections 38 and 43 of the Pensions Act 2004) such an employer.

 

(b)                                 The present value of the accrued benefit liabilities (whether or not vested) under each Non-U.S. Plan that is funded, determined as of the end of each Obligor’s most recently ended Financial Year on the basis of reasonable actuarial assumptions, did not exceed the current value of the assets of such Non-U.S. Plan allocable to such benefit liabilities determined as of such date by more than £20,000,000 (or its equivalent).

 

5.29.                     No Adverse Consequences.

 

(a)                                 It is not necessary under the laws of its Relevant Jurisdictions:

 

(i)                                     in order to enable any holder to enforce its rights under any Note Document; or

 

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(ii)                                  by reason of the execution of any Note Document or the performance by it of its obligations under any Note Document,

 

that any Purchaser or other holder should be licensed, qualified or otherwise entitled to carry on business in any of its Relevant Jurisdictions.

 

(b)                                 No Purchaser or other holder is or will be deemed to be resident, domiciled or carrying on business in its Relevant Jurisdictions by reason only of the execution, performance and/or enforcement of any Note Document.

 

5.30.                     U.S. Regulations.

 

(a)                                 Employee Benefit Plans

 

(i)                                     No Obligor or ERISA Affiliate has incurred at any time within the last six years or could be reasonably expected to incur any liability to, or on account of, a Multiemployer Plan as a result of a violation of section 515 of ERISA or pursuant to section 4201, 4204 or 4212(c) of ERISA.

 

(ii)                                  Each Employee Plan complies in form and operation in all material respects with ERISA, the Internal Revenue Code and all other applicable laws and regulations.

 

(iii)                               The present value of the aggregate benefit liabilities under each of the Employee Plans (other than any Multiemployer Plan), determined as of the end of such plan’s most recently ended plan year on the basis of the actuarial methods and assumptions specified for funding purposes in such plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such plan allocable to such benefit liabilities by more than US$9,000,000 (or its equivalent) in the case of any single Employee Plan and by more than US$10,500,000 (or its equivalent) in the aggregate for all Employee Plans.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

 

(iv)                              There is (to the best of each Obligor’s and ERISA Affiliate’s knowledge and belief) no litigation, arbitration, administrative proceeding or claim pending or threatened against or with respect to any Employee Plan (other than routine claims for benefits) which has or, if adversely determined, could reasonably be expected have a Material Adverse Effect.

 

(v)                                 Within the last six years each Obligor and each ERISA Affiliate has made all material contributions to each Employee Plan and Multiemployer Plan required by law within the applicable time limits prescribed by law, the terms of that Plan and any contract or agreement requiring contributions to that Plan.

 

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(vi)                              No Obligor or ERISA Affiliate has ceased operations at a facility so as to be subject to the provisions of section 4062(e) of ERISA, withdrawn as a substantial employer so as to be subject to the provisions of section 4063 of ERISA, or ceased making contributions to any Employee Plan subject to section 4064(a) of ERISA to which it made contributions.

 

(vii)                           No Obligor or ERISA Affiliate has incurred any material liability to the PBGC, which remains outstanding or could reasonably be expected to incur any material liability to the PBGC.

 

(viii)                        No ERISA Event has occurred or, as at the date of this Agreement, is reasonably likely to occur that could reasonably be expected to have a Material Adverse Effect.

 

(ix)                              The execution and delivery of this Agreement and the other Note Documents and the issuance and sale of the Notes will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Internal Revenue Code.  The representation by the Obligors to each Purchaser in the first sentence of this Section 5.30(a)(x) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be purchased by such Purchaser.

 

(b)                                 Margin Regulations

 

The Issuer will apply the proceeds of the sale of the Notes to repay the Existing Notes on the day immediately following the day of Closing in accordance with the Funds Flow Statement and, to the extent any proceeds are not necessary for the repayment of the Existing Notes, for general corporate purposes.  No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Issuer in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 25% of the value of the consolidated assets of the Group and none of the Obligors has any present intention that margin stock will constitute more than 25% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

 

(c)                                  Other U.S. Regulation

 

No Obligor or any Affiliate of an Obligor is:

 

(i)                                     a public utility within the meaning of, or subject to regulation under, the United States Federal Power Act of 1920,

 

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(ii)                                  an investment company or a company controlled by an investment company within the meaning of the United States Investment Company Act of 1940,

 

(iii)                               subject to regulation under the ICC Termination Act of 1995, as amended, or

 

(iv)                              subject to regulation under any United States federal or state law or regulation that limits its ability to incur or guarantee indebtedness.

 

(d)                                 Foreign Assets Control Regulations, etc.

 

No Obligor or any of its Subsidiaries or any of its Affiliates or Holding Companies, or to its knowledge any of their respective brokers or other agents acting or benefiting in any capacity in connection with the Notes or any other Note Document:

 

(i)                                     is in violation of any Anti-Terrorism Law,

 

(ii)                                  is in violation of the OFAC Sanctions Regulations,

 

(iii)                               is a Designated Person, or

 

(iv)                              is a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, any Designated Person, any Person that is otherwise a sanctions target of the U.S. government, or any government of a country subject to the OFAC Sanctions Regulations (each Designated Person and each other Person described in this clause (v) is a “Blocked Person”).

 

5.31.                     Sanctions.

 

The Parent Guarantor represents that neither the Parent Guarantor nor any member of the Group (collectively for the purpose of this clause only, the “Company”) or, to the knowledge of the Company, any director, officer, employee, agent, affiliate or representative of the Company is a Person currently the subject of any sanctions administered or enforced by OFAC, the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions.  The Company represents and covenants that it will not, directly or indirectly, use the proceeds of the transaction, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, to fund any activities of or business with any Person, or in Burma/Myanmar, Cuba, Iran, Libya, North Korea, Sudan or in any other country or territory, that, at the time of such funding, would result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

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5.32.                     Private Offering.

 

None of the Obligors nor anyone acting on their behalf has offered the Notes, the Unconditional Guarantee or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers, each of which has been offered the Notes and the Unconditional Guarantee at a private sale for investment.  Subject to the Purchasers’ representations and warranties in Section 6, none of the Obligors nor anyone acting on their behalf has taken, or will take, any action that would subject the issuance or sale of the Notes or the Unconditional Guarantee to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

6.                                      REPRESENTATIONS OF THE PURCHASERS.

 

6.1.                            Purchase for Investment.

 

Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution or resale thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control.  Each Purchaser understands that the Notes have not been registered under the Securities Act or any state or other securities law, that the Notes are being issued by the Issuer in transactions exempt from the registration requirements of the Securities Act and that the Notes may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration under the Securities Act is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Issuer is not required to register the Notes.  Each Purchaser is an “accredited investor” as defined in Regulation D promulgated by the Securities Act.  Each Purchaser represents that (a) it is a sophisticated institutional investor and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Notes, (b) it has been furnished with or has had access to the information it has requested from the Issuer and its Affiliates and has had an opportunity to discuss with the management of the Issuer and its Affiliates the business and financial affairs of the Issuer and its Subsidiaries and (c) it must bear the economic risk of its investment in the Notes for an indefinite period of time because the Notes will not be registered under the Securities Act or any applicable state securities laws.

 

6.2.                            Source of Funds.

 

Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by it hereunder:

 

(a)                                 the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of 

 

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Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or

 

(b)                                 the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

 

(c)                                  the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Issuer in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

 

(d)                                 the Source constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Issuer and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Issuer in writing pursuant to this clause (d); or

 

(e)                                  the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Part IV(d) of the INHAM Exemption) owns a 10% or more interest in the Issuer (as determined under Part IV(d) of the INHAM Exemption, as amended effective April 1, 2011) and (i) the identity of such INHAM and (ii) the name(s) of the employee 

 

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benefit plan(s) whose assets constitute the Source have been disclosed to the Issuer in writing pursuant to this clause (e); or

 

(f)                                   the Source is a governmental plan; or

 

(g)                                  the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Issuer in writing pursuant to this clause (g); or

 

(h)                                 the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

 

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

 

7.                                      INFORMATION AS TO THE OBLIGORS.

 

7.1.                            Financial and Business Information.

 

The Parent Guarantor shall deliver to each holder of Notes that is an Institutional Investor (and for purposes of this Agreement the information required by this Section 7.1 shall be deemed delivered on the date of delivery of such information in the English language or the date of delivery of an English translation thereof):

 

(a)                                 Monthly Statements — promptly after the same are available and in any event within 45 days after the end of each calendar month, a duplicate copy of the Parent Guarantor’s management financial statements on a consolidated basis for that calendar month and for the Financial Year to date, which statements shall be substantially in the form of the monthly management accounts supplied by the Parent Guarantor to the Purchasers pursuant to Section 4.3(b);

 

(b)                                 Annual Statements — promptly after the same are available and in any event within 180 days after the end of each Financial Year, a duplicate copy of

 

(i)                                     its audited consolidated profit and loss accounts, balance sheets and cashflow statements for that Financial Year, and

 

(ii)                                  the consolidated profit and loss accounts, balance sheets and cashflow statements (consolidated if appropriate) of each other Obligor (audited where required under the Relevant Jurisdiction) for that Financial Year,

 

setting forth in each case in comparative form the figures for the previous Financial Year, all in reasonable detail, prepared by the Group’s Auditors in accordance with Accounting Principles, and accompanied by an opinion thereon of the Group’s Auditors, which opinion shall state that such financial statements give a true and fair view of the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with Accounting Principles, and that the

 

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examination of the Group’s Auditors in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances;

 

(c)                                  SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, circular, notice or proxy statement or similar document sent by the Parent Guarantor or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Parent Guarantor or any Subsidiary with the Securities and Exchange Commission or any similar Governmental Authority or securities exchange and of all press releases and other statements made available generally by the Parent Guarantor or any Subsidiary to the public concerning developments that are Material;

 

(d)                                 Notice of Default or Event of Default — promptly after a Responsible Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Obligors are taking or propose to take with respect thereto;

 

(e)                                  ERISA —

 

(i)                                     promptly upon a request by any holder, deliver to such holder copies of the Annual Report (IRS form 5500 Series) together with all schedules and documentation reasonably requested by such holder with respect to each Employee Plan; and

 

(ii)                                  within twenty-one Business Days after it or any ERISA Affiliate becomes aware that any ERISA Event has occurred or, in the case of any ERISA Event which requires advance notice under section 4043(b) of ERISA, will occur, deliver to the holders a statement signed by a director, member or officer of the Parent Guarantor or ERISA Affiliate describing that ERISA Event and the action, if any, taken or proposed to be taken with respect to that ERISA Event;

 

(f)                                   Budget — as soon as it becomes available but in any event before the start of each Financial Year, an annual Budget for that Financial Year, which Budget shall be in a form acceptable to the Required Holders and shall:

 

(i)                                     include a projected consolidated profit and loss, balance sheet and cashflow statement for each principal division of the Group; and

 

(ii)                                  include projected financial covenant calculations for such Financial Year;

 

23

 

(iii)                               be prepared in accordance with the Accounting Principles and the accounting practices and financial reference periods applied to financial statements under Sections 7.1(a) and 7.1(b); and

 

(iv)                              have been approved by the board of directors of the Parent Guarantor;

 

(g)                                  Litigation — promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which, if adversely determined, would involve a liability, or a potential or alleged liability, exceeding £1,000,000 (or its equivalent in other currencies);

 

(h)                                 Parent Guarantor — promptly upon the reasonable request of any holder, information regarding any changes to the main board or the executive board of the Parent Guarantor and an up to date copy of its register of members (or equivalent in its jurisdiction of incorporation) (provided that the Parent Guarantor shall not be required to provide a copy of its register of members to any one holder more frequently than twice in any Financial Year unless such holder requires the register of members for know your customer requirements and/or if such holder suspects that there has been a Change of Control); and

 

(i)                                     Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Parent Guarantor or any of its Subsidiaries or relating to the ability of the Obligors to perform their obligations under any Note Document or the ability of the Issuer to perform its obligations under the Notes as from time to time may be reasonably requested by any such holder of Notes, including information readily available to the Obligors explaining the Parent Guarantor’s financial statements if such information has been requested by the SVO in order to assign or maintain a designation of the Notes.

 

7.2.                            Other Requirements as to Financial Statements; Officer’s Certificate.

 

(a)                                 Each set of Annual Financial Statements delivered to a holder of Notes pursuant to Section 7.1(b) shall be accompanied by any letter addressed to the management of the relevant company (to the extent the Parent Guarantor receives such a letter) by the auditors accompanying those Annual Financial Statements.

 

(b)                                 Each set of Monthly Financial Statements delivered to a holder of Notes pursuant to Section 7.1(a) shall be accompanied by a commentary from a Senior Financial Officer of the Parent Guarantor comparing actual performance for the period to which such Monthly Financial Statements relate to (i) the projected performance for that period set out in the Budget and (ii) the actual performance for the corresponding period in the preceding Financial Year.

 

(c)                                  Each set of Quarterly Financial Statements and each set of Annual Financial Statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a Compliance Certificate.

 

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7.3.                            Access.

 

Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group shall) permit the representatives of each holder of Notes that is an Institutional Investor:

 

(a)                                 No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of any member of the Group, to discuss the affairs, finances and accounts of the Group with such Group member’s officers, and (with the consent of such member, which consent will not be unreasonably withheld) to visit the other offices and properties of the Group, all at such reasonable times and as often as may be reasonably requested in writing; and

 

(b)                                 Default — if a Default or Event of Default then exists, at the expense of the Issuer to visit and inspect any of the offices or properties of the Group, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss the Group members’ respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Obligors authorize said accountants to discuss the affairs, finances and accounts of the Group), all at such times and as often as may be requested.

 

7.4.                            Limitation on Disclosure Obligation.

 

The Obligors shall not be required to disclose the following information pursuant to Section 7.1(d), 7.1(i) or 7.3:

 

(a)                                 information that the applicable Obligor determines after consultation with counsel qualified to advise on such matters that, notwithstanding the confidentiality requirements of Section 21, it would be prohibited from disclosing by applicable law or regulations without making public disclosure thereof; or

 

(b)                                 information that, notwithstanding the confidentiality requirements of Section 21, the applicable Obligor is prohibited from disclosing by the terms of an obligation of confidentiality contained in any agreement with any non-Affiliate binding upon such Obligor and not entered into in contemplation of this clause (b), provided that such Obligor shall use commercially reasonable efforts to obtain consent from the party in whose favor the obligation of confidentiality was made to permit the disclosure of the relevant information and provided further that the applicable Obligor has received a written opinion of counsel confirming that disclosure of such information without consent from such other contractual party would constitute a breach of such agreement.

 

Promptly after a request therefor from any holder of Notes that is an Institutional Investor, the Obligors will provide such holder with a written opinion of counsel (which may be addressed to the applicable Obligor) relied upon as to any requested information that the applicable Obligor is prohibited from disclosing to such holder under circumstances described in this Section 7.4.

 

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8.                                      PAYMENT AND PREPAYMENT OF THE NOTES.

 

8.1.                            Maturity.

 

As provided therein, the entire unpaid principal balance of the Notes shall be due and payable on the stated maturity date thereof.

 

8.2.                            Optional Prepayments with Make-Whole Amount.

 

The Issuer may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than US$1,000,000 (and in integrals of US$500,000) in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount.  The Issuer will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 10 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer of the Issuer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Issuer shall deliver to each holder of Notes a certificate of a Senior Financial Officer of the Issuer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.  Prior to the date that is three Business Days before the prepayment date specified in a prepayment notice delivered pursuant to this Section 8.2, by written notice to each holder of Notes, the Issuer may revoke such notice of prepayment or postpone the prepayment date specified therein to a later date specified in such written notice; provided, however, the Issuer may revoke a notice of prepayment or postpone the prepayment date specified therein only in the event that the Issuer has notified the holders of Notes that it intends to make such prepayment using the proceeds of the incurrence of Financial Indebtedness under a financing facility that is not currently in effect and such refinancing fails to close or, in the case of a postponement of the prepayment date only, the closing of such refinancing is postponed to a date falling after the prepayment date specified in such notice.

 

8.3.                            Allocation of Partial Prepayments.

 

In the case of each partial prepayment of the Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

 

8.4.                            Maturity; Surrender, etc.

 

In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount 

 

26

 

accrued to such date and the applicable Make-Whole Amount, if any.  From and after such date, unless the Issuer shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Issuer and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

 

8.5.                            Purchase of Notes.

 

The Obligors will not and will not permit any of their respective Affiliates to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes.  The Issuer will promptly cancel all Notes acquired by any Obligor or any Affiliate of an Obligor pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

 

8.6.                            Make-Whole Amount.

 

The term “Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

 

“Applicable Percentage” in the case of a computation of the Make-Whole Amount for any purpose means 0.50% (50 basis points).

 

“Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 11.1, as the context requires.

 

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, the sum of the (x) Applicable Percentage plus (y) the yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for

 

27

 

the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable U.S. Treasury security with the maturity closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

 

“Remaining Average Life”  means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

 

“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1.

 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 11.1, as the context requires.

 

8.7.                            Change of Control Prepayment.

 

(a)                                 Within 15 days following the date upon which a Responsible Officer of any Obligor first has actual knowledge of a Change of Control, the Issuer shall give written notice of such Change of Control (a “Change of Control Notice”) to each holder of a Note, which Change of Control Notice shall (i) describe the facts and circumstances of such Change of Control in reasonable detail, (ii) refer to this Section 8.7 and the rights of the holders of Notes hereunder, (iii) contain an offer to prepay on a date, which shall be no more than 60 days and not less than 30 days after the date of such Change of Control Notice, the entire unpaid principal amount of the Notes held by such holder, together with interest thereon to the prepayment date, if any, with respect to each Note prepaid (showing in such offer the amount of interest which would be paid on such prepayment date together with specific information as to how such estimated amount was

 

28

 

calculated), and (iv) request such holder to notify the Issuer in writing by a stated date (a “Response Date”), which date is not less than 10 days prior to the prepayment date and not less than 20 days after such holder’s receipt of the Change of Control Notice, of its acceptance or rejection of such prepayment offer.  If a holder does not notify the Issuer on or before the Response Date specified in the Change of Control Notice of such holder’s acceptance of the prepayment offer contained therein, then the holder shall be deemed to have rejected such offer.

 

(b)                                 On the prepayment date specified in the Change of Control Notice, the entire unpaid principal amount of the Notes held by each holder of a Note who has accepted such prepayment offer, together with accrued and unpaid interest thereon to the prepayment date shall become due and payable.

 

(c)                                  To the extent they may legally do so (including without breaching any confidentiality undertaking) the Obligors will promptly provide any holder of a Note with all information in their possession which such holder may reasonably request in order to enable such holder to evaluate the effect of a Change of Control on such holder’s investment in the Notes.

 

8.8.                            Disposal and Insurance Prepayments.

 

(a)                                 Notice and Offer.  In the event that any member of the Group receives any Disposal Proceeds or any Insurance Proceeds, the Issuer shall give written notice thereof to each holder of Notes.  Such written notice shall contain, and such written notice shall constitute, an irrevocable offer (a “Disposal Prepayment Offer” or “ Insurance Prepayment Offer”, respectively) to prepay, at the election of each holder, a portion of the Notes held by such holder equal to such holder’s Ratable Portion of such Disposal Proceeds or Insurance Proceeds on a date specified in such notice (the “Disposal Prepayment Date” or “Insurance Prepayment Date”, respectively) that is not less than 30 days and not more than 60 days after the date of such notice.  If such prepayment date shall not be specified in such notice, the Disposal Prepayment Date or Insurance Prepayment Date, as applicable, shall be the 45th day after the date of such notice.

 

(b)                                 Acceptance; Rejection.

 

(i)                                     Disposal Prepayment Offer.  The failure of a holder of a Note to respond to a Disposal Prepayment Offer in writing within 20 days after the date of such written notice thereof from the Issuer shall be deemed to constitute an acceptance of the Disposal Prepayment Offer with respect to such Note.  A holder may reject a Disposal Prepayment Offer with respect to any or all of such holder’s Notes by causing a notice of its rejection to be delivered to the Issuer not later than 20 days after the date of such written notice from the Issuer.

 

(ii)                                  Insurance Prepayment Offer.  The failure of a holder of a Note to respond to an Insurance Prepayment Offer in writing within 20 days after the date of such written notice thereof from the Issuer shall be deemed to constitute a rejection of the Insurance Prepayment Offer with respect to such Note.  To accept 

 

29

 

an Insurance Prepayment Offer, a holder shall cause a notice of its acceptance to be delivered to the Issuer not later than 20 days after the date of such written notice from the Issuer.

 

(c)                                  Prepayment.

 

(i)                                     Disposal Prepayment Offer.  Once accepted by a holder of a Note, a prepayment in respect of a Disposal Prepayment Offer (equal to such holder’s Ratable Portion of the relevant Disposal Proceeds) shall be due and payable on the Disposal Prepayment Date.  Such offered prepayment shall be made at 100% of the principal amount of such Notes being so prepaid, plus the Make-Whole Amount determined for the Disposal Prepayment Date with respect to such principal amount, together with interest on such principal amount then being prepaid accrued to the Disposal Prepayment Date.  On the Business Day preceding the Disposal Prepayment Date, the Issuer shall deliver to each holder of Notes being prepaid a statement showing the Make-Whole Amount due in connection with such prepayment and setting forth the details of the computation of such amount.  The prepayment shall be made on the Disposal Prepayment Date.

 

(ii)                                  Insurance Prepayment Offer.  Once accepted by a holder of a Note, a prepayment in respect of an Insurance Prepayment Offer (equal to such holder’s Ratable Portion of the relevant Insurance Proceeds) shall be due and payable on the Insurance Prepayment Date.  Such offered prepayment shall be made at 100% of the principal amount of such Notes being so prepaid, together with interest on such principal amount then being prepaid accrued to the Insurance Prepayment Date.  The prepayment shall be made on the Insurance Prepayment Date.

 

(d)                                 Other Terms.  Each offer to prepay the Notes pursuant to this Section 8.8 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Parent Guarantor and dated the date of such offer, specifying (i) the Disposal Prepayment Date or Insurance Prepayment Date, as applicable, (ii) the amount of the relevant Disposal Proceeds or Insurance Proceeds, (iii) that such offer is being made pursuant to this Section 8.8, (iv) the principal amount of each Note offered to be prepaid, (v) with respect to a prepayment pursuant to a Disposal Prepayment Offer, the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such certificate were the Disposal Prepayment Date), setting forth the details of such computation, (vi) the interest that would be due on each Note offered to be prepaid, accrued to the Disposal Prepayment Date or Insurance Prepayment Date, as applicable, and (vii) in reasonable detail, the nature of such Disposal or relevant insurance claim and certifying that no Default or Event of Default exists or would exist after giving effect to the prepayment contemplated by such offer.  For the avoidance of doubt, any Disposal giving rise to an Event of Default under any provision of this Agreement shall not be deemed to be permitted, and such Event of Default shall not be deemed to be waived by any holder, by reason of any holder’s acceptance or rejection of a Disposal Prepayment Offer in respect of such Disposal or any payment in connection therewith.

 

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(e)                                  Intercreditor Deed.  Any payments under this Section 8.8 shall be made subject to and in accordance with the provisions of the Intercreditor Deed.

 

9.                                      COVENANTS.

 

Each Obligor covenants that, at all times on and after the date of this Agreement until no Notes are outstanding:

 

9.1.                            Financial Covenants.

 

(a)                                 Financial Condition.

 

(i)                                     Debt Service Cover.  The Parent Guarantor shall ensure that Debt Service Cover in respect of any Relevant Period specified in column 1 below shall not be less than the ratio set out in column 2 below opposite that Relevant Period:

 

	
Column 1
   Relevant Period
    	
 
    	
Column 2
   Ratio
    
	
 
    	
 
    	
 
    
	
Relevant Period ending September 30, 2011
    	
 
    	
1.25:1
    
	
 
    	
 
    	
 
    
	
Relevant Period ending December 31, 2011
    	
 
    	
1.25:1
    
	
 
    	
 
    	
 
    
	
Thereafter each Relevant Period ending on a Quarter Date
    	
 
    	
1.25:1
    

 

(ii)                                  Interest Cover.  The Parent Guarantor shall ensure that Interest Cover in respect of any Relevant Period shall not be less than 4.0:1.

 

(iii)                               Leverage.  The Parent Guarantor shall ensure that Leverage in respect of any Relevant Period shall not exceed 3.0:1

 

(iv)                              Capital Expenditure.  The Parent Guarantor shall ensure that the aggregate capital expenditure of the Group in respect of any Financial Year shall not exceed 110% of budgeted capital expenditure for that Financial Year as set out in the Budget for that Financial Year.

 

(b)                                 Financial testing.

 

(i)                                     The financial covenants set out in Section 9.1(a) shall be calculated in accordance with the Accounting Principles and tested by reference to:

 

(A)                               the Annual Financial Statements; and

 

(B)                               the Quarterly Financial Statements for the Relevant Period.

 

(ii)                                  If in respect of any period there is a discrepancy between the information set out in the Quarterly Financial Statements for such period and that

 

31

 

set out in the Annual Financial Statements for such period, the information in the Annual Financial Statements shall prevail.

 

(iii)                               In respect of any Relevant Period, the exchange rate used to calculate Total Net Debt shall be the Average Exchange Rate for that Relevant Period.

 

9.2.                            Authorizations.

 

Each Obligor shall promptly:

 

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

 

(b)                                 supply certified copies to the holders of,

 

any Authorization required under any law or regulation of a Relevant Jurisdiction to:

 

(i)                                     enable it to perform its obligations under the Note Documents;

 

(ii)                                  ensure the legality, validity, enforceability or admissibility in evidence of any Note Document; and

 

(iii)                               carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

9.3.                            Compliance with Laws.

 

Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group will) comply in all respects with all laws to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

9.4.                            Environmental Compliance.

 

Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group will):

 

(a)                                 comply with all Environmental Law;

 

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

 

(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 Adverse Effect.

 

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9.5.                            Environmental Claims.

 

Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group will) promptly upon becoming aware of the same, inform the holders 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 the claim, if determined against that member of the Group, has or is reasonably likely to have a Material Adverse Effect.

 

9.6.                            Taxation.

 

(a)                                 Each Obligor shall pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

(i)                                     such payment is being contested in good faith;

 

(ii)                                  adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the holders under Section 7.1(a) or 7.1(b); and

 

(iii)                               such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

 

(b)                                 No Obligor may change its residence for Tax purposes.

 

9.7.                            Merger.

 

No Obligor shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction without the prior written consent of the Required Holders (such consent not to be unreasonably withheld or delayed).

 

9.8.                            Change of Business.

 

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

 

9.9.                            Acquisitions.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure that no other member of the Group will):

 

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(i)                                     acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them); or

 

(ii)                                  incorporate a company.

 

(b)                                 Section 9.9(a) does not apply to an acquisition of a company, of shares, securities or a business or undertaking (or, in each case, any interest in any of them) or the incorporation of a company which is a Permitted Acquisition.

 

9.10.                     Joint Ventures.

 

No Obligor shall (and the Parent Guarantor shall ensure that no member of the Group will):

 

(a)                                 enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

 

(b)                                 transfer any assets or lend to or guarantee or give an indemnity for or give Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

 

Sections 9.10(a) and 9.10(b) above do not apply to any Joint Venture with is a Permitted Joint Venture.

 

9.11.                     Preservation of Assets.

 

Each Obligor shall maintain in good working order and condition (ordinary wear and tear excepted) all of its assets necessary in the conduct of its business.

 

9.12.                     Pari Passu Ranking.

 

(a)                                 Each Obligor shall ensure that at all times its payment obligations under the Note Documents will rank at least pari passu, without preference or priority, with its payment obligations under the Bank Facilities Agreement and the other Bank Documents and any Permitted Refinancing Agreement and any other Permitted Refinancing Documents.

 

(b)                                 Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group will) ensure that at all times any unsecured and unsubordinated claims of a holder against it under the Note Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

9.13.                     Negative Pledge.

 

In this Agreement, “Quasi-Security” means an arrangement or transaction described in Section 9.13(b).

 

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(a)                                 No Obligor shall (and the Parent Guarantor shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

 

(b)                                 No Obligor shall (and the Parent Guarantor 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 an Obligor or any other member of the Group;

 

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

 

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

 

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

 

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

 

(c)                                  Section 9.13(a) and 9.13(b) do not apply to any Security or (as the case may be) Quasi-Security, which is Permitted Security.

 

9.14.                     Disposals.

 

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

 

(b)                                 Section 9.14(a) above does not apply to any sale, lease, transfer or other disposal which is:

 

(i)                                     a Permitted Disposal; or

 

(ii)                                  a Permitted Transaction.

 

9.15.                     Arm’s Length Basis.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure no member of the Group will) enter into any transaction with any Person except on arm’s length terms and for full market value.

 

(b)                                 Section 9.15(a) does not apply to:

 

(i)                                     intra-Group loans permitted under Section 9.16;

 

35

 

(ii)                                  fees, costs and expenses payable under the Note Documents or under the Bank Documents in the amounts set out in the Bank Documents delivered to the Purchasers under Section 4 or agreed by the Required Holders;

 

(iii)                               any Permitted Transaction; or

 

(iv)                              the sale and/or licensing by Revere Graphics Worldwide of certain Intellectual Property for a nominal amount to a third party as approved by the U.S. Federal Trade Commission as set out in the Disclosure Documents.

 

9.16.                     Loans or Credit.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure that no member of the Group will) be a creditor in respect of any Financial Indebtedness.

 

(b)                                 Section 9.16(a) does not apply to a Permitted Loan.

 

9.17.                     No Guarantees or Indemnities.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure no member of the Group will) incur or allow to remain outstanding any guarantee in respect of any obligation of any Person.

 

(b)                                 Section 9.17(a) does not apply to a Permitted Guarantee.

 

9.18.                     Dividends and Share Redemption.

 

(a)                                 Except as permitted under the Intercreditor Deed, the Parent Guarantor shall not (and the Parent Guarantor shall ensure that no member of the Group will):

 

(i)                                     declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

 

(ii)                                  repay or distribute any dividend or share premium reserve;

 

(iii)                               pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Parent Guarantor; or

 

(iv)                              redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so.

 

(b)                                 Section 9.18(a) does not apply to a Permitted Distribution.

 

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9.19.                     Bank Facilities Agreement.

 

Except as permitted under the Intercreditor Deed, the Parent Guarantor shall not (and will ensure that no other member of the Group will):

 

(a)                                 repay or prepay any principal amount (or capitalized interest) outstanding under the Bank Facilities Agreement or any Permitted Refinancing Agreement; or

 

(b)                                 pay any interest, fee or charge accrued or due under the Bank Documents or any Permitted Refinancing Documents.

 

9.20.                     Financial Indebtedness.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure that no member of the Group will) incur or allow to remain outstanding any Financial Indebtedness.

 

(b)                                 Clause 9.20(a) does not apply to Permitted Financial Indebtedness.

 

9.21.                     Share Capital.

 

(a)                                 No Obligor shall (and the Parent Guarantor shall ensure no member of the Group will) issue any shares.

 

(b)                                 Section 9.21(a) does not apply to a Permitted Share Issue.

 

9.22.                     Insurance.

 

(a)                                 Each Obligor shall effect and maintain, in a form and amount such insurance on and in respect of its business and its assets as a prudent company carrying on the same or substantially similar business as such Obligor would effect.

 

(b)                                 The Parent Guarantor shall within 10 Business Days of each anniversary of the date of this Agreement provide to the holders of Notes either:

 

(i)                                     copies of each insurance policy in which that Obligor has an interest; or

 

(ii)                                  a letter from an insurance broker confirming the requirements of Section 9.22(a) are being compiled with.

 

9.23.                     Pensions.

 

(a)                                 The Parent Guarantor shall ensure that all pension schemes operated by or maintained for the benefit of members of the Group and/or any of its employees are funded in accordance with the statutory funding objective under sections 221 and 222 of the Pensions Act 2004 and that no action or omission is taken by any member of the Group in relation to such a pension scheme which has or is reasonably likely to have a Material Adverse Effect (including, without limitation, the termination or commencement 

 

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of winding-up proceedings of any such pension scheme or any member of the Group ceasing to employ any member of such a pension scheme).

 

(b)                                 Except for the Defined Benefit Schemes, the Parent Guarantor shall ensure that no member of the Group is or has been at any time an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pension Schemes Act 1993) or connected with or an associate of (as those terms are used in sections 38 or 43 of the Pensions Act 2004) such an employer.

 

(c)                                  If requested by any holder, the Parent Guarantor shall deliver to such holder at such times as those reports are prepared in order to comply with the then current statutory or auditing requirements (as applicable either to the trustees of any relevant schemes or to the Parent Guarantor), the actuarial reports in relation to all pension schemes mentioned in Section 9.23(a).

 

(d)                                 The Parent Guarantor shall promptly notify the holders of any material change in the rate of contributions to any pension schemes mentioned in Section 9.23(a) above paid or recommended to be paid (whether by the scheme actuary or otherwise) or required (by law or otherwise).

 

(e)                                  Each Obligor shall as soon as it becomes aware of it immediately notify the holders of any investigation or proposed investigation by the Pensions Regulator which may lead to the issue of a Financial Support Direction or a Contribution Notice to any member of the Group.

 

(f)                                   Each Obligor shall immediately notify the holders if it receives a Financial Support Direction or a Contribution Notice from the Pensions Regulator.

 

9.24.                                            Intellectual Property.

 

Each Obligor shall:

 

(a)                                 preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Obligor;

 

(b)                                 use reasonable endeavors to prevent any infringement in any material respect of the Intellectual Property;

 

(c)                                  make registrations and pay all registration fees and Taxes necessary to maintain the Intellectual Property that the relevant Obligor is required to maintain under Section 9.24(a) above in full force and effect and record its interest in that Intellectual Property;

 

(d)                                 not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any Obligor to use such property; and

 

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(e)                                  not discontinue the use of the Intellectual Property,

 

where failure to do so, in the case of Sections 9.24(a) and 9.24(b) or, in the case of Sections 9.24(d) and 9.24(e), such use, permission to use, omission or discontinuation is reasonably likely to have a Material Adverse Effect.

 

9.25.                     Transaction Documents.

 

(a)                                 No Obligor shall amend, vary, novate, supplement, supersede, waive or terminate any term of a Transaction Document or any other document delivered to the Purchasers pursuant to Section 4 or enter into any agreement with any shareholders of the Parent Guarantor or any of their Affiliates which is not a member of the Group except in writing:

 

(i)                                     in accordance with the provisions of Section 18.1;

 

(ii)                                  to the extent that that amendment, variation, novation, supplement, superseding, waiver or termination is permitted by the Intercreditor Deed;

 

(iii)                               prior to or on the date of Closing, with the prior written consent of the Purchasers;

 

(iv)                              after the date of Closing in respect of the Bank Documents, in a way which:

 

(A)                               could not be reasonably expected materially and adversely to affect the interests of the holders; and

 

(B)                               would not change the date, amount or method of payment of interest or principal payable under the Bank Facilities Agreement; or

 

(v)                                 in respect of any Permitted Refinancing Documents, in a way which:

 

(A)                               could not be reasonably expected materially and adversely to affect the interests of the holders; and

 

(B)                               would not change the date, amount or method of payment of interest or principal payable under any Permitted Refinancing Agreement.

 

(b)                                 The Issuer shall promptly supply to the holders a copy of any document relating to any of the matters referred to in Sections 9.25(a)(i) to 9.25(a)(v), inclusive, above.

 

(c)                                  Each Obligor shall (and the Parent Guarantor shall ensure that each member of the Group will) comply with the material terms of all Transaction Documents to which it is party.

 

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9.26.                     Financial Assistance.

 

Any Obligor which is incorporated in any jurisdiction other than England and Wales shall comply with any law or regulation on financial assistance or its equivalent in that jurisdiction.

 

9.27.                     Group Bank Accounts.

 

Each Obligor shall ensure that, within three months of the date of Closing all its bank accounts in the United Kingdom or the United States of America (other than Excluded Deposit Accounts) shall be opened and maintained with banks or financial institutions that are Acceptable Banks from time to time.

 

9.28.                     Treasury Transactions.

 

No Obligor shall (and the Parent Guarantor will ensure that no member of the Group will) enter into any Treasury Transaction, other than:

 

(a)                                 the hedging transactions contemplated by the Hedging Letter (as defined in the Bank Facilities Agreement as in effect on the date hereof) and documented by the Hedging Agreement (as defined in the Bank Facilities Agreement as in effect on the date hereof);

 

(b)                                 spot and forward delivery foreign exchange contracts entered into in the ordinary course of business and not for speculative purposes; and

 

(c)                                  any Treasury Transaction entered into for the hedging of actual or projected real exposures arising in the ordinary course of trading activities of a member of the Group and not for speculative purposes.

 

9.29.                     Auditors.

 

The Parent Guarantor shall ensure that the auditors of each member of the Group are Auditors.

 

9.30.                     Further Assurance.

 

The Obligors shall, promptly upon the request of the Required Holders, file or record, as applicable, all termination statements and lien releases and take such other actions as may be necessary to discharge all mortgages, deeds of trust and security interests granted by members of the Group in respect of (i) the ABL Facility (following repayment of the ABL Facility as contemplated hereunder) and (ii) any other security over assets of any Obligor other than Permitted Security (excluding Permitted Security identified in paragraph (h) of the definition of such term).

 

9.31.                     Guarantors.

 

(a)                                 The Parent Guarantor and the Issuer shall ensure that at all times after the date of this Agreement the aggregate:

 

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(i)                                     earnings before interest, tax and amortization (calculated on the same basis as EBITA) of the Obligors (calculated on an unconsolidated basis and excluding all unrealized intra-Group profits of any member of the Group) exceeds 75% of EBITA of the Group; and

 

(ii)                                  gross assets of the Obligors (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the consolidated gross assets of the Group.

 

Notwithstanding the foregoing, the Parent Guarantor and the Issuer need only perform their obligations under this Section 9.31(a) if it is not unlawful for the relevant Person to become a Subsidiary Guarantor and that Person becoming a Subsidiary Guarantor would not result in personal liability for that Person’s directors or other management.  Each Obligor must use, and must procure that the relevant Person uses, all reasonable endeavors lawfully available to avoid any such unlawfulness or personal liability.  This includes agreeing to a limit on the amount guaranteed.  The holders may (but shall not be obliged to) agree to such a limit if, in their opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

(b)                                 The Parent Guarantor and the Issuer shall ensure that each Material Company (other than the Issuer, the French Subsidiary and the Czech Subsidiary) is a Subsidiary Guarantor.

 

(c)                                  The Parent Guarantor and the Issuer shall ensure that each Subsidiary (other than the Issuer) that at any time becomes obligated as a borrower or a guarantor under or with respect to any Principal Lending Facility is a Subsidiary Guarantor.

 

(d)                                 The Parent Guarantor and the Issuer shall, at their sole cost and expense, cause each Subsidiary that, after the date of this Agreement, becomes a Subsidiary Guarantor to concurrently therewith deliver to each of the holders of the Notes the following items:

 

(i)                                     an executed Joinder Agreement;

 

(ii)                                  (A) in the case of any Subsidiary that is incorporated or formed under the laws of England and Wales, an executed English Guarantee Agreement and (B) in the case of any Subsidiary that is incorporated or formed under the laws of any jurisdiction outside the United States of America and England and Wales, an executed guarantee agreement in form and substance reasonably satisfactory to the Required Holders;

 

(iii)                               evidence in form and substance reasonably satisfactory to the Required Holders that such Subsidiary has become party to the Intercreditor Deed as a “Debtor” in accordance with the terms thereof;

 

(iv)                              such documents and evidence with respect to such Subsidiary as the Required Holders may reasonably request in order to establish the existence 

 

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and good standing of such Subsidiary and the authorization of the transactions contemplated by the Note Documents being executed by such Subsidiary;

 

(v)                                 an opinion of counsel to such Subsidiary in form and substance reasonably satisfactory to the Required Holders to the effect that (w) the Note Documents being executed by such Subsidiary have been duly authorized, executed and delivered by such Subsidiary, (x) the Note Documents being executed by such Subsidiary constitute the legal, valid and binding contracts and agreements of such Subsidiary, enforceable in accordance with their terms (except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles), and (y) the execution, delivery and performance by such Subsidiary of the Note Documents being executed by such Subsidiary do not (A) violate any law, rule or regulation applicable to such Subsidiary, or (B) (1) conflict with or result in any breach of any of the provisions of or constitute a default under or result in the creation or imposition of any Security not permitted by this Agreement or (2) conflict with or result in any breach of any of the provisions of or constitute a default under the provisions of the constitutive documents of such Subsidiary; and

 

(vi)                              such Subsidiary’s most recent annual financial statements in the form specified in Section 7.1(b).

 

(e)                                  If at any time, any Subsidiary Guarantor:

 

(i)                                     is not required to be a Guarantor pursuant to Sections 9.31(a) or 9.31(b),

 

(ii)                                  is not a borrower under any Principal Lending Facility and, pursuant to the terms and conditions of each Principal Lending Facility, is discharged and released from any guarantee it shall have granted with respect to each such Principal Lending Facility, and

 

(iii)                               the Parent Guarantor shall have delivered to each holder of Notes an Officer’s Certificate of the Parent Guarantor certifying that (x) the conditions specified in clauses (i) and (ii) above have been satisfied and (y) immediately preceding the release of such Subsidiary Guarantor from its guarantee with respect to the Notes and after giving effect thereto, no Default or Event of Default will have existed or would exist,

 

then, upon receipt by the holders of Notes of such Officer’s Certificate, such Subsidiary Guarantor will be discharged and released, automatically and without the need for any further action, from its obligations under its Joinder Agreement, English Guarantee Agreement or other guarantee agreement (if applicable) with respect to the Notes; provided that, if in connection with any release of a Subsidiary Guarantor from its guarantee with respect to any Principal Lending Facility any fee or other consideration is paid or given to any Person in connection with such release, each holder of a Note shall 

 

42

 

receive equivalent consideration on a pro rata basis.  Without limiting the foregoing, for purposes of further assurance, each of the holders agrees to provide to the Obligors, if reasonably requested by the Obligors and at the Issuer’s expense, written evidence of such discharge and release signed by such holder.

 

9.32.                     Anti-Terrorism Laws.

 

Each Obligor agrees to the extent applicable to each Obligor:

 

(a)                                 to comply and require its Affiliates to comply with all Anti-Terrorism Laws;

 

(b)                                 to comply and require its Affiliates to comply with the OFAC Sanctions Regulations;

 

(c)                                  not to take actions that would render it or any of its Affiliates to become subject to sanctions under CISADA;

 

(d)                                 not to be listed and not to permit any of its Affiliates to be listed as a Designated Person or a Blocked Person, and not to violate any Anti-Terrorism Law or OFAC Sanctions Regulation;

 

(e)                                  notwithstanding its obligations under Section 9.32(d), immediately to notify the holders if it obtains knowledge that it or any of its Affiliates has become or been listed as a Designated Person or a Blocked Person or has been charged with or has engaged in any violation of any Anti-Terrorism Law or the OFAC Sanctions Regulations;

 

(f)                                   to exclude any funds derived from any Designated Person or Blocked Person or from any Person involved in the violation of any Anti-Terrorism Law or OFAC Sanctions Regulation from being used to pay debt service or any other amounts owing under the Note Documents;

 

(g)                                  except for transfers of stock of any publicly traded Obligor or Affiliate effected on a stock exchange, not to transfer or permit the transfer of any legal or beneficial ownership interest of any kind in such Obligor or any Affiliate of such Obligor to a Designated Person, Blocked Person or any Person or entity that such Obligor has to its best knowledge (based upon reasonable inquiry by such Obligor) been involved in the violation of any Anti-Terrorism Law or OFAC Sanctions Regulation;

 

(h)                                 not to acquire, directly or indirectly, ownership interest of any kind in any Designated Person, Blocked Person or any Person or entity that such Obligor has, to its best knowledge (based upon reasonable inquiry by such Obligor) been involved in the violation of any Anti-Terrorism Law or OFAC Sanctions Regulation, not to form any partnership or joint venture with any such Person and not to act, directly or indirectly, as the agent or representative of any such Person or engage in any other dealings or transactions with any such Person; and

 

43

 

(i)                                     to indemnify the holders for any costs incurred by any of them as a result of any violation of an Anti-Terrorism Law or OFAC Sanctions Regulation by any Obligor or any Affiliate of any Obligor.

 

9.33.                     ERISA.

 

Each Obligor shall:

 

(a)                                 ensure that neither it nor any ERISA Affiliate engages in a complete or partial withdrawal, within the meaning of sections 4203 and 4205 of ERISA, from any Multiemployer Plan without the prior consent of the Required Holders;

 

(b)                                 ensure that any material liability imposed on it or any ERISA Affiliate pursuant to Title IV of ERISA is paid and discharged when due;

 

(c)                                  ensure that neither it nor any ERISA Affiliate adopts an amendment to an Employee Plan requiring the provision of Security under ERISA or the Internal Revenue Code without the prior consent of the Required Holders; and

 

(d)                                 ensure that no Employee Plan is terminated under section 4041 of ERISA.

 

9.34.                     Margin Regulation.

 

(a)                                 Each Obligor shall (and the Parent Guarantor shall ensure that each Obligor shall) use the proceeds of the Notes without violating Regulation T, U or X of the Board of Governors of the Federal Reserve System (12 CFR 220, 12 CFR 221 and 12 CFR 224, respectively) or any other applicable U.S. federal or state laws or regulations.

 

(b)                                 If requested by any holder, each Obligor shall furnish to such holder a statement in conformity with the requirements of FR Form U-1 referred to in Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221).

 

9.35.                     U.S. Regulation.

 

Each Obligor shall ensure that it will not, by act or omission, become subject to any of the categories, laws or regulations described in Section 5.30(c).

 

9.36.                     Favored Lender Status.

 

(a)                                 No Obligor shall, or shall permit any of its Subsidiaries to, at any time after the date of this Agreement enter into or amend or otherwise modify any Principal Lending Facility (including any amendment to the Bank Facilities Agreement) which would result in such Principal Lending Facility including any covenant or event of default (whether set forth as a covenant, undertaking, event of default, restriction or other such provision but, for the avoidance of doubt, excluding any term thereof relating to interest rates, applicable margins, fees or other “pricing” terms) that would be more beneficial to the holders of Notes than the provisions of this Agreement (any such covenant, a “More Favorable Provision”) unless the Obligors shall have delivered a

 

44

 

Favored Lender Notice to each holder of a Note and the Required Holders have accepted (or have been deemed to accept) or rejected the offer contained in such Favored Lender Notice in accordance with this Section 9.36(a).  If holders of Notes constituting the Required Holders do not notify the Issuer on or before the date that is fifteen days after each holder’s receipt of such Favored Lender Notice of their rejection of the offer contained therein, then the Required Holders shall be deemed to have accepted such offer and such More Favorable Provision shall be deemed automatically incorporated by reference into this Agreement, mutatis mutandis, as if set forth fully herein, effective as of the date when such More Favorable Provision shall become effective under such Principal Lending Facility (any More Favorable Provision incorporated into this Agreement pursuant to this Section 9.36, an “Incorporated Provision”).  Thereafter, upon the request of the Required Holders, the Obligors shall enter into any additional agreement or amendment to this Agreement reasonably requested by the Required Holders evidencing any of the foregoing.

 

(b)                                 For the avoidance of doubt, each of the existing covenants and events of default in Section 9 and Section 10 as of the date of this Agreement shall remain in this Agreement regardless of whether any Incorporated Provisions are incorporated into this Agreement.

 

(c)                                  For purposes of this Section 9.36, a “Favored Lender Notice” means, in respect of any More Favorable Provision, a written notice to each of the holders of Notes by a Senior Financial Officer of the Issuer or the Parent Guarantor which: (i) refers to this Section 9.36 and the rights of the holders of Notes hereunder, (ii) sets forth a reasonably detailed description of such More Favorable Covenant (including any defined terms used therein) and related explanatory calculations, as applicable, (iii) contains an offer to incorporate such More Favorable Provision into this Agreement, and (iv) requests such holder to notify the Issuer or the Parent Guarantor within fifteen days of such holder’s receipt of such Favored Lender Notice of its acceptance or rejection of such offer.

 

9.37.                     Year-end.

 

The Parent Guarantor shall procure that its Financial Year-end falls on December 31 and that each Financial Year-end of each other member of the Group falls on December 31 save where otherwise required by law in any Relevant Jurisdiction.

 

9.38.                     Compliance with Hedging Letter.

 

The Parent Guarantor shall ensure that all exchange rate and interest rate hedging arrangements required by the Hedging Letter are implemented in accordance with the terms of the Hedging Letter and that such arrangements are not terminated, varied or cancelled without the prior written consent of the Required Holders save as permitted by the terms of the Intercreditor Deed.

 

9.39.                     Replacement Agent for Service of Process.

 

In the event that the Issuer ceases to be a Group member or otherwise ceases to serve as the U.S. Obligors’ agent for the purpose of accepting service of process in the United States for 

 

45

 

and on their behalf, each Non-U.S. Obligor shall, within thirty (30) days, appoint a replacement agent for such purpose from the date of such appointment to the date that is one calendar year after the latest maturity date of any Note as stated therein, which replacement agent shall be reasonably satisfactory to the holders of Notes.

 

9.40.                     Conditions Subsequent.

 

(a)                                 Each U.S. Obligor shall submit the required notification and documentation to close all its bank accounts in England and Wales on or prior to the date falling three (3) Business Days after the date of the Closing.

 

(b)                                 On or before the date 60 days after the date of the Closing, the Obligors shall provide evidence to the holders of Notes that the Security in respect of the ABL Facility has been released and all necessary forms MG02 have been filed at Companies House.

 

(c)                                  The Parent Guarantor shall procure that each of LGL 1996 Limited and Biggleswick Limited are liquidated in accordance with clause (b) of the definition of Permitted Transaction before the first anniversary of the date hereof.

 

10.                               EVENTS OF DEFAULT.

 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:

 

(a)                                 Non-payment.  An Obligor does not pay on the due date any amount payable pursuant to a Note Document at the place and in the currency in which it is expressed to be payable unless:

 

(i)                                     its failure to pay is caused by:

 

(A)                               an administrative or technical error; or

 

(B)                               a Disruption Event; and

 

(ii)                                  payment is made within 3 Business Days of its due date.

 

(b)                                 Financial Covenants and Other Obligations.

 

(i)                                     Any requirement of Section 9.1 is not satisfied.

 

(ii)                                  An Obligor does not comply with any Material Provision.

 

(c)                                  Other Obligations.

 

(i)                                     An Obligor does not comply with any provision of the Note Documents (other than those referred to in Sections 10(a) and 10(b)).

 

46

 

(ii)                                  No Event of Default under Sections 10(c)(i) will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of:

 

(A)                               any holder giving notice to the Issuer or relevant Obligor; and

 

(B)                               the Issuer or the relevant Obligor becoming aware of the failure to comply.

 

(d)                                 Misrepresentation.

 

(i)                                     Any representation or statement made or deemed to be made by an Obligor in the Note Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Note Document is or proves to have been incorrect or misleading when made or deemed to be made.

 

(ii)                                  No Event of Default under Section 10(d)(i) will occur if:

 

(A)                               the event or circumstance causing the representation or statement to be incorrect or misleading is capable of remedy; and

 

(B)                               such Obligor shall have remedied such event or circumstance within ten Business Days after the earlier of:

 

(1)                                 the relevant Obligor becoming aware of such incorrect or misleading representation or statement; and

 

(2)                                 receipt by the relevant Obligor of written notice from any holder to such Obligor requiring the event or circumstance to be remedied.

 

(e)                                  Cross Default.

 

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

 

(ii)                                  Any Financial Indebtedness of any member of the Group (A) is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described), or (B) is otherwise required to be repurchased prior to its specified maturity as a result of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Financial Indebtedness to convert such Financial Indebtedness into equity interests), provided, that this clause (B) shall not apply with respect to any event constituting a Change of Control which is covered by Section 8.7 or any offer of repayment of the type set forth in Section 8.8.

 

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(iii)                               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).

 

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

 

(v)                                 No Event of Default will occur under this Section 10(e) if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within Section 10(e)(i) to 10(e)(iv) (inclusive) is less than £2,500,000 (or its equivalent in any other currency or currencies).

 

(f)                                   Insolvency.

 

(i)                                     A member of the Group is unable or admits inability to pay its debts as they fall due, suspends or threatens to suspend 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.

 

(ii)                                  A moratorium is declared in respect of any indebtedness of any member of the Group.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

 

(g)                                  Insolvency Proceedings.

 

(i)                                     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 reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Group;

 

(B)                               a composition, compromise, assignment or arrangement with any creditor of any member of the Group other than as permitted under paragraph (b) of the definition of “Permitted Transaction”;

 

(C)                               the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any member of the Group or any of its assets; or

 

(D)                               enforcement of any Security over any assets of any member of the Group,

 

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

 

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(ii)                                  Any of the following occurs in respect of a U.S. Obligor:

 

(A)                               it makes a general assignment for the benefit of creditors;

 

(B)                               it commences a voluntary case or proceeding under any U.S. Bankruptcy Law;

 

(C)                               an involuntary proceeding under any U.S. Bankruptcy Law is commenced against it and is not challenged by appropriate means within thirty (30) days and is not dismissed or stayed within ninety (90) days after commencement of such case; or

 

(D)                               a custodian, conservator, receiver, liquidator, assignee, trustee, sequestrator or other similar official is appointed under any U.S. Bankruptcy Law for, or takes charge of, all or a substantial part of the property of a U.S. Obligor.

 

(iii)                               Section 10(g) shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement.

 

(h)                                 Creditors’ Process.  Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of a member of the Group having an aggregate value of £1,500,000 (or its equivalent in any currency) and is not discharged within 21 days of the commencement of such process.

 

(i)                                     Unlawfulness and Invalidity.

 

(i)                                     It is or becomes unlawful for an Obligor, or any other member of the Group that is a party to the Intercreditor Deed, to perform any of its obligations under the Note Documents or any subordination created under the Intercreditor Deed is or becomes unlawful.

 

(ii)                                  Any obligation or obligations of any Obligor under any Note Document or any obligation or obligations of any other member of the Group under the Intercreditor Deed are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the holders of Notes under the Note Documents.

 

(iii)                               Any Note Document ceases to be in full force and effect or any subordination created under the Intercreditor Deed, ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a holder) to be ineffective.

 

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(j)                                    Intercreditor Deed.

 

(i)                                     Any party to the Intercreditor Deed (other than a holder or an Obligor) fails to comply with the provisions of, or does not perform its obligations under, the Intercreditor Deed; or

 

(ii)                                  a representation or warranty given by that party in the Intercreditor Deed is incorrect in any material respect,

 

and, if the non-compliance or circumstances giving rise to the misrepresentation or breach of warranty are capable of remedy, it is not remedied within 10 Business Days of the earlier of any holder giving notice to that party or that party becoming aware of the non-compliance, misrepresentation or breach of warranty.

 

(k)                                 Cessation of Business.  Any member of the Group suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business where such suspension or cessation is reasonably likely to have a Material Adverse Effect.

 

(l)                                     Change of Ownership.  After the date of the Closing, an Obligor (other than the Parent Guarantor) ceases to be a wholly-owned Subsidiary of the Parent Guarantor.

 

(m)                             Audit Qualification.  The Auditors of the Group qualify the Annual Financial Statements of the Parent Guarantor in an adverse manner which the Required Holders (acting reasonably) consider material.

 

(n)                                 Expropriation.  The authority or ability of any Obligor to conduct its business is materially limited or wholly or substantially curtailed by any seizure, expropriation, nationalization, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other Person in relation to any Obligor or any of its assets.

 

(o)                                 Repudiation and Rescission of Agreements.

 

(i)                                     An Obligor (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Note Document or evidences an intention to rescind or repudiate a Note Document.

 

(ii)                                  Any party to the Intercreditor Deed rescinds or purports to rescind or repudiates or purports to repudiate any of those agreements or instruments in whole or in part where to do so has or is, in the reasonable opinion of the Required Holders, likely to have a material adverse effect on the interests of the holders under the Note Documents.

 

(p)                                 Litigation.  Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Transaction Documents or the transactions contemplated in the 

 

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Transaction Documents or against any member of the Group or its assets which results in a liability to such member of the Group (whether actual or contingent) in an aggregate amount in excess of £5,000,000 (excluding any proceedings in respect of which (a) the insurers of the Group have confirmed in writing to the holders that the liability is fully covered by insurance and (b) such insurers are not disputing liability) (or its equivalent in any currency) and where a grace period is provided for that liability is not discharged in full within any required period set out in the relevant judgment, settlement or agreement.

 

(q)                                 Pensions.  The Pensions Regulator issues a Financial Support Direction or a Contribution Notice to any member of the Group unless the aggregate liability of the Obligors in each Financial Year under all Financial Support Directions and Contributions Notices is less than the greater of:

 

(i)                                     £5,000,000 (or its equivalent in any currency); and

 

(ii)                                  10% of the Group’s EBITDA (by reference to the latest audited Annual Financial Statements delivered to the holders pursuant to Section 7.1(b)).

 

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

 

(s)                                   ERISA.  Any ERISA Event or event set forth in (i) through (iii), inclusive, below occurs that has or could reasonably be expected to have, a Material Adverse Effect:

 

(i)                                     any Obligor or ERISA Affiliate incurs or is likely to incur a liability to or on account of a Multiemployer Plan as a result of a violation of section 515 of ERISA or under section 4201, 4204 or 4212(c) of ERISA;

 

(ii)                                  with respect to each Employee Plan subject to Title IV of ERISA, such plan’s funded ratio (defined for this purpose as the actuarial value of the assets of such plan divided by the present value of all benefits accrued or earned with respect to such plan) is less than (A) 76 per cent as of January 1, 2011 and (B) 80 per cent on the first day of any year thereafter.  The calculation of such ratio shall be computed using the actuarial value, assumptions and methods used by the actuary to the Employee Plan in its most recent valuation of such plan;

 

(iii)                               any Obligor or ERISA Affiliate incurs or is likely to incur a liability to or on account of an Employee Plan under section 409, 502(i) or 502(l) of ERISA or section 401 or 4971 of the Internal Revenue Code.

 

11.                               REMEDIES ON DEFAULT, ETC.

 

11.1.                     Acceleration.

 

(a)                                 If an Event of Default with respect to any Obligor described in Section 10 (f), (g) or (h) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

 

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(b)                                 If any other Event of Default has occurred and is continuing, the Required Holders may at any time at their option, by notice or notices to the Issuer, declare all the Notes then outstanding to be immediately due and payable.

 

(c)                                  If any Event of Default described in Section 10(a) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Issuer, declare all the Notes held by it or them to be immediately due and payable.

 

Upon any Notes becoming due and payable under this Section 11.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, without limitation, interest accrued thereon at the Default Rate) and (y) with respect to an acceleration under Section 11.1(a) or (b), the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  Each Obligor acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Issuer (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Issuer in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

 

11.2.                     Other Remedies.

 

If any Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 11.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

 

11.3.                     Rescission.

 

At any time after any Notes have been declared due and payable pursuant to Section 11.1(b) or (c), the Required Holders, by written notice to the Issuer, may rescind and annul any such declaration and its consequences if (a) the Issuer has paid all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Issuer nor any other Person shall have paid any amounts that have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (d) no judgment or decree has been entered for the payment of any monies due 

 

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pursuant hereto or to the Notes.  No rescission and annulment under this Section 11.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

 

11.4.                     No Waivers or Election of Remedies, Expenses, etc.

 

No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Issuer under Section 16, the Issuer will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 11, including, without limitation, reasonable attorneys’ fees, expenses and disbursements and any Registration Duty.

 

12.                               TAX INDEMNIFICATION.

 

All payments whatsoever under the Note Documents will be made by the relevant Obligor in lawful currency of the United States of America free and clear of, and without liability for withholding or deduction for or on account of, any present or future Taxes of whatever nature imposed or levied by or on behalf of any jurisdiction other than the United States (or any political subdivision or taxing authority of or in such jurisdiction) (hereinafter a “Taxing Jurisdiction”), unless the withholding or deduction of such Tax is compelled by law.

 

If any deduction or withholding for any Tax of a Taxing Jurisdiction shall at any time be required in respect of any amounts to be paid by an Obligor under a Note Document, the relevant Obligor will pay to the relevant Taxing Jurisdiction the full amount required to be withheld, deducted or otherwise paid before penalties attach thereto or interest accrues thereon and pay to each holder of a Note such additional amounts as may be necessary in order that the net amounts paid to such holder pursuant to the terms of such Note Document after such deduction, withholding or payment (including, without limitation, any required deduction or withholding of Tax on or with respect to such additional amount), shall be not less than the amounts then due and payable to such holder under the terms of such Note Document before the assessment of such Tax, provided that no payment of any additional amounts shall be required to be made for or on account of:

 

(a)                                 any Tax that would not have been imposed but for the existence of any present or former connection between such holder (or a fiduciary, settlor, beneficiary, member of, shareholder of, or possessor of a power over, such holder, if such holder is an estate, trust, partnership or corporation or any Person other than the holder to whom the Notes or any amount payable thereon or in connection therewith is attributable for the purposes of such Tax) and the Taxing Jurisdiction, other than the mere holding of the relevant Note or the receipt of payments thereunder or in respect thereof, including, without limitation, such holder (or such other Person described in the above parenthetical) being or having been a citizen or resident thereof, or being or having been present or engaged in trade or business therein or having or having had an establishment, office, fixed base or branch therein, provided that this exclusion shall not apply with

 

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respect to a Tax that would not have been imposed but for the relevant Obligor, after the date of this Agreement, opening an office in, moving an office to, reincorporating in, or changing the Taxing Jurisdiction from or through which payments on account of any Note Document are made to, the Taxing Jurisdiction imposing the relevant Tax;

 

(b)                                 any Tax that would not have been imposed but for the delay or failure by such holder (following a written request by the relevant Obligor) in the filing with the relevant Taxing Jurisdiction of Forms (as defined below) that are required to be filed by such holder to avoid or reduce such Taxes (including for such purpose any refilings or renewals of filings that may from time to time be required by the relevant Taxing Jurisdiction), provided that the filing of such Forms would not (in such holder’s reasonable judgment) impose any unreasonable burden (in time, resources or otherwise) on such holder or result in any confidential or proprietary income tax return information being revealed, either directly or indirectly, to any Person and such delay or failure could have been lawfully avoided by such holder, and provided further that such holder shall be deemed to have satisfied the requirements of this clause (b) upon the good faith completion and submission of such Forms (including refilings or renewals of filings) as may be specified in a written request of the relevant Obligor no later than 60 days after receipt by such holder of such written request (accompanied by copies of such Forms and related instructions, if any, all in the English language or with an English translation thereof); or

 

(c)                                  any combination of clauses (a) and (b) above;

 

and provided further that in no event shall an Obligor be obligated to pay such additional amounts to any holder of a Note (i) not resident in the United States of America or any other jurisdiction in which an original Purchaser is resident for tax purposes on the date of the Closing in excess of the amounts that such Obligor would be obligated to pay if such holder had been a resident of the United States of America or such other jurisdiction, as applicable, for purposes of, and eligible for the benefits of, any double taxation treaty from time to time in effect between the United States of America or such other jurisdiction and the relevant Taxing Jurisdiction or (ii) to any holder of a Note registered in the name of a nominee if under the law of the relevant Taxing Jurisdiction (or the current regulatory interpretation of such law) securities held in the name of a nominee do not qualify for an exemption from the relevant Tax and such Obligor shall have given timely notice of such law or interpretation to such holder.

 

By acceptance of any Note, the holder of such Note agrees, subject to the limitations of clause (b) above, that it will from time to time with reasonable promptness (x) duly complete and deliver to or as reasonably directed by an Obligor all such forms, certificates, documents and returns provided to such holder by such Obligor (collectively, together with instructions for completing the same, “Forms”) required to be filed by or on behalf of such holder in order to avoid or reduce any such Tax pursuant to the provisions of an applicable statute, regulation or administrative practice of the relevant Taxing Jurisdiction or of a tax treaty between the United States and such Taxing Jurisdiction and (y) provide such Obligor with such information with respect to such holder as such Obligor may reasonably request in order to complete any such Forms, provided that nothing in this Section 12 shall require any holder to provide information with respect to any such Form or otherwise if in the opinion of such holder such Form or

 

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disclosure of information would involve the disclosure of tax return or other information that is confidential or proprietary to such holder, and provided further that each such holder shall be deemed to have complied with its obligation under this paragraph with respect to any Form if such Form shall have been duly completed and delivered by such holder to such Obligor or mailed to the appropriate taxing authority (which in the case of a United Kingdom HMRC Form US/Company 2002 or any similar Form shall be deemed to occur when such Form is submitted to the United States Internal Revenue Service in accordance with instructions contained in such Form), whichever is applicable, within 60 days following a written request of such Obligor (which request shall be accompanied by copies of such Form and English translations of any such Form not in the English language) and, in the case of a transfer of any Note, at least 90 days prior to the relevant interest payment date.

 

Any Purchaser or other holder of a Note who is a UK Treaty Holder and who holds a UK Treaty Passport, and who wishes to apply its UK Treaty Passport to this Agreement, shall irrevocably include an indication to that effect by including its scheme reference number and its jurisdiction of tax residence in Schedule A (or, in the case of any transferee of a Note, in the information provided to the Issuer pursuant to Section 14.2).  Where a Purchaser of a Note has included such an indication in Schedule A or in the information provided to the Issuer pursuant to Section 14.2, the Issuer shall file a duly completed form DTTP2 in respect of such Purchaser or holder with HMRC within 30 days of the date of the Closing (or, in the case of any transferee of a Note, within 30 days of completion of the transfer thereof).  The Issuer shall provide such Purchaser or holder with a copy of that filing and shall notify such Purchaser or holder if the filing has not been made within the aforementioned period or if the Issuer becomes aware that HMRC has decided not to apply the UK Treaty Passport Scheme to this Agreement or any Note in respect of that Purchaser or holder.  For the avoidance of doubt, any Purchaser or other holder of a Note who is a UK Treaty Holder holding a UK Treaty Passport which can be used by such UK Treaty Holder in respect of this Agreement, and who has given the Issuer an indication or notification in accordance with the foregoing, shall not be required to file any other Form seeking relief in respect of UK Tax pursuant to the applicable double taxation agreement unless and until it has received any notification by the Issuer in accordance with this paragraph (and then only in accordance with this Section 12).

 

If any payment is made by an Obligor to or for the account of the holder of any Note after deduction for or on account of any Taxes, and increased payments are made by such Obligor pursuant to this Section 12, then, if such holder at its sole discretion determines that it has received or been granted a refund of such Taxes, such holder shall, to the extent that it can do so without prejudice to the retention of the amount of such refund, reimburse to such Obligor such amount as such holder shall, in its sole discretion, determine to be attributable to the relevant Taxes or deduction or withholding.  Nothing herein contained shall interfere with the right of the holder of any Note to arrange its tax affairs in whatever manner it thinks fit and, in particular, no holder of any Note shall be under any obligation to claim relief from its corporate profits or similar tax liability in respect of such Tax in priority to any other claims, reliefs, credits or deductions available to it or (other than as set forth in clause (b) above) oblige any holder of any Note to disclose any information relating to its tax affairs or any computations in respect thereof.

 

Each Obligor will furnish the holders of Notes, promptly and in any event within 60 days after the date of any payment by such Obligor of any Tax in respect of any amounts paid under

 

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any Note Document, the original tax receipt issued by the relevant taxation or other authorities involved for all amounts paid as aforesaid (or if such original tax receipt is not available or must legally be kept in the possession of such Obligor, a duly certified copy of the original tax receipt or any other reasonably satisfactory evidence of payment), together with such other documentary evidence with respect to such payments as may be reasonably requested from time to time by any holder of a Note.

 

If any Obligor is required by any applicable law, as modified by the practice of the taxation or other authority of any relevant Taxing Jurisdiction, to make any deduction or withholding of any Tax in respect of which such Obligor would be required to pay any additional amount under this Section 12, but for any reason does not make such deduction or withholding with the result that a liability in respect of such Tax is assessed directly against the holder of any Note, and such holder pays such liability, then such Obligor will promptly reimburse such holder for such payment (including any related interest or penalties to the extent such interest or penalties arise by virtue of a default or delay by such Obligor) upon demand by such holder accompanied by an official receipt (or a duly certified copy thereof) issued by the taxation or other authority of the relevant Taxing Jurisdiction.

 

If any Obligor makes payment to or for the account of any holder of a Note and such holder is entitled to a refund of the Tax to which such payment is attributable upon the making of a filing (other than a Form described above), then such holder shall, as soon as practicable after receiving written request from such Obligor (which shall specify in reasonable detail and supply the refund forms to be filed) use reasonable efforts to complete and deliver such refund forms to or as directed by such Obligor, subject, however, to the same limitations with respect to Forms as are set forth above.

 

The obligations of the Obligors under this Section 12 shall survive the payment or transfer of any Note and the provisions of this Section 12 shall also apply to successive transferees of the Notes.

 

13.                               GUARANTEE AND OTHER RIGHTS AND UNDERTAKINGS.

 

13.1.                     Guarantee.

 

Each U.S. Guarantor, in consideration of the execution and delivery of this Agreement, the purchase of the Notes by the Purchasers and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby irrevocably, unconditionally and jointly and severally with the other Guarantors guarantees to each holder, the due and punctual payment in full by the Issuer of (a) the principal of, Make-Whole Amount, if any, and interest on (including, without limitation, interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), and any other amounts due under, the Notes when and as the same shall become due and payable (whether at stated maturity or by required or optional prepayment or by acceleration or otherwise) and (b) any other sums which may become owing by the Issuer to the holders under the terms and provisions of the Notes, this Agreement, any other Note Document or any other instrument referred to therein (all such obligations described in clauses (a) and (b) above are 

 

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herein called the “Guaranteed Obligations”).  The guarantee in the preceding sentence (the “Unconditional Guarantee”) is an absolute, present and continuing guarantee of payment and not of collectibility and is in no way conditional or contingent upon any attempt to collect from any other Obligor or guarantor of the Notes (including, without limitation, any other U.S. Guarantor hereunder and any other Guarantor that executes an English Guarantee Agreement) or upon any other action, occurrence or circumstance whatsoever.  In the event that the Issuer shall fail so to pay any of such Guaranteed Obligations, each U.S. Guarantor agrees to pay the same when due to the holders entitled thereto, without demand, presentment, protest or notice of any kind, in lawful money of the United States of America, pursuant to the requirements for payment specified in the Notes and this Agreement.  Each default in payment of any of the Guaranteed Obligations shall give rise to a separate cause of action hereunder and separate suits may be brought hereunder as each cause of action arises.  Each U.S. Guarantor agrees that the Notes may (but need not) make reference to the Unconditional Guarantee.

 

Each U.S. Guarantor agrees to pay and to indemnify and save each holder harmless from and against any damage, loss, cost or expense (including attorneys’ fees) which such holder may incur or be subject to as a consequence, direct or indirect, of (x) any breach by such U.S. Guarantor, by any other Guarantor or by the Issuer of any warranty, covenant, term or condition in, or the occurrence of any default under, this Agreement (including, without limitation, the Unconditional Guarantee), the Notes, any other Note Document or any other instrument referred to therein, together with all expenses resulting from the compromise or defense of any claims or liabilities arising as a result of any such breach or default, (y) any legal action commenced to challenge the validity or enforceability of this Agreement (including, without limitation, the Unconditional Guarantee), the Notes, any other Note Document or any other instrument referred to therein and (z) enforcing or defending (or determining whether or how to enforce or defend) the provisions of this Section 13, provided, that no U.S. Guarantor shall be liable for any damage, loss, cost or expense arising out of the gross negligence or willful misconduct of any holder.

 

Each U.S. Guarantor hereby acknowledges and agrees that such U.S. Guarantor’s liability hereunder is joint and several with the other Guarantors and any other Person(s) who may guarantee the obligations and indebtedness under and in respect of the Notes and the other Note Documents.

 

Notwithstanding the foregoing provisions or any other provision of this Agreement, the Purchasers (on behalf of themselves and their successors and assigns) and each U.S. Guarantor hereby agree that if at any time the Guaranteed Obligations exceed the Maximum Guaranteed Amount determined as of such time with regard to such U.S. Guarantor, then this Section 13 shall be automatically amended to reduce the Guaranteed Obligations to the Maximum Guaranteed Amount.  Such amendment shall not require the written consent of any U.S. Guarantor or any holder and shall be deemed to have been automatically consented to by each U.S. Guarantor and each holder.  Each U.S. Guarantor agrees that the Guaranteed Obligations may at any time exceed the Maximum Guaranteed Amount without affecting or impairing the obligation of such U.S. Guarantor.  “Maximum Guaranteed Amount” means as of the date of determination with respect to a U.S. Guarantor, the lesser of (a) the amount of the Guaranteed Obligations outstanding on such date and (b) the maximum amount that would not render such U.S. Guarantor’s liability under this Section 13 subject to avoidance under Section 548 of the 

 

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United States Bankruptcy Code (or any successor provision) or any comparable provision of applicable law of any jurisdiction.

 

13.2.                     Obligations Absolute.

 

The obligations of each U.S. Guarantor under this Section 13 shall be primary, absolute, irrevocable and unconditional, irrespective of the validity or enforceability of the Notes, any other Note Document or any other instrument referred to therein, shall not be subject to any counterclaim, setoff, deduction or defense based upon any claim such U.S. Guarantor may have against the Issuer or any holder or otherwise, and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected by, any circumstance or condition whatsoever (whether or not such U.S. Guarantor shall have any knowledge or notice thereof), including, without limitation: (a) any amendment to, modification of, supplement to or restatement of the Notes, any other Note Document or any other instrument referred to therein (it being agreed that the obligations of each U.S. Guarantor under this Section 13 shall apply to the Notes, the other Note Documents and any such other instrument as so amended, modified, supplemented or restated) or any assignment or transfer of any thereof or of any interest therein, or any furnishing, acceptance or release of any security for the Notes or the addition, substitution or release of any other Guarantor or any other entity or other Person primarily or secondarily liable in respect of the Guaranteed Obligations; (b) any waiver, consent, extension, indulgence or other action or inaction under or in respect of the Notes, any other Note Document or any other instrument referred to therein; (c) any bankruptcy, insolvency, arrangement, reorganization, readjustment, composition, liquidation or similar proceeding with respect to the Issuer or its property; (d) any merger, amalgamation or consolidation of any Guarantor or of the Issuer into or with any other Person or any sale, lease or transfer of any or all of the assets of any Guarantor or of the Issuer to any Person; (e) any failure on the part of the Issuer for any reason to comply with or perform any of the terms of any other agreement with any Guarantor; (f) any failure on the part of any holder to obtain, maintain, register or otherwise perfect any security; or (g) any other event or circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor (whether or not similar to the foregoing), and in any event however material or prejudicial it may be to any Guarantor or to any subrogation, contribution or reimbursement rights any Guarantor may otherwise have.  Each U.S. Guarantor covenants that its obligations hereunder will not be discharged except by indefeasible payment in full in cash of all of the Guaranteed Obligations and all other obligations hereunder.

 

13.3.                     Waiver.

 

Each U.S. Guarantor unconditionally waives to the fullest extent permitted by law, (a) notice of acceptance hereof, of any action taken or omitted in reliance hereon and of any default by the Issuer in the payment of any amounts due under the Notes, any other Note Document or any other instrument referred to therein, and of any of the matters referred to in Section 13.2, (b) all notices which may be required by statute, rule of law or otherwise to preserve any of the rights of any holder against such U.S. Guarantor, including, without limitation, presentment to or demand for payment from the Issuer or any Guarantor with respect to any Note, notice to the Issuer or to any Guarantor of default or protest for nonpayment or dishonor and the filing of claims with a court in the event of the bankruptcy of the Issuer, (c) any right to require any holder to enforce, assert or exercise any right, power or remedy including, without limitation, 

 

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any right, power or remedy conferred in this Agreement, the Notes or any other Note Document, (d) any requirement for diligence on the part of any holder and (e) any other act or omission or thing or delay in doing any other act or thing which might in any manner or to any extent vary the risk of such U.S. Guarantor or otherwise operate as a discharge of such U.S. Guarantor or in any manner lessen the obligations of such U.S. Guarantor hereunder.

 

13.4.                     Obligations Unimpaired.

 

Each U.S. Guarantor authorizes the holders, without notice or demand to such U.S. Guarantor or any other Guarantor and without affecting its obligations hereunder, from time to time, in accordance with the provisions of the relevant Note Document or other instrument:  (a) to renew, compromise, extend, accelerate or otherwise change the time for payment of, all or any part of the Notes, any other Note Document or any other instrument referred to therein; (b) to change any of the representations, covenants, events of default or any other terms or conditions of or pertaining to the Notes, this Agreement, any other Note Document or any other instrument referred to therein, including, without limitation, decreases or increases in amounts of principal, rates of interest, the Make-Whole Amount or any other obligation; (c) to take and hold security for the payment of the Notes, any other Note Document or any other instrument referred to therein, for the performance of this Section 13 or otherwise for the Guaranteed Obligations and to exchange, enforce, waive, subordinate and release any such security; (d) to apply any such security and to direct the order or manner of sale thereof as the holders in their sole discretion may determine; (e) to obtain additional or substitute endorsers or guarantors or release any other Guarantor or any other Person or entity primarily or secondarily liable in respect of the Guaranteed Obligations; (f) to exercise or refrain from exercising any rights against the Issuer, any Guarantor or any other Person; and (g) to apply any sums, by whomsoever paid or however realized, to the payment of the Guaranteed Obligations and all other obligations owed hereunder.  The holders shall have no obligation to proceed against any additional or substitute endorsers or guarantors or to pursue or exhaust any security provided by the Issuer, such U.S. Guarantor or any other Guarantor or any other Person or to pursue any other remedy available to the holders.

 

If an event permitting the acceleration of the maturity of the principal amount of any Notes shall exist and such acceleration shall at such time be prevented or the right of any holder to receive any payment on account of the Guaranteed Obligations shall at such time be delayed or otherwise affected by reason of the pendency against the Issuer, any Guarantor or any other guarantors of a case or proceeding under a bankruptcy or insolvency law, such U.S. Guarantor agrees that, for purposes of this Section 13 and its obligations hereunder, the maturity of such principal amount shall be deemed to have been accelerated with the same effect as if the holder thereof had accelerated the same in accordance with the terms of this Agreement, and such U.S. Guarantor shall forthwith pay such accelerated Guaranteed Obligations.

 

13.5.                     Subrogation and Subordination.

 

(a)                                 Each U.S. Guarantor will not be entitled to and will not exercise any rights which it may have acquired by way of subrogation under this Section 13, by any payment made hereunder or otherwise, or accept any payment on account of such subrogation rights, nor will any U.S. Guarantor seek or be entitled to seek any reimbursement, contribution or indemnity from any other Obligor or any other Person, nor seek or be

 

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entitled to seek any rights or recourse to any security for the Notes or this Agreement, in each case unless and until all of the Guaranteed Obligations shall have been indefeasibly paid in full in cash.

 

(b)                                 Each U.S. Guarantor hereby subordinates the payment of all Financial Indebtedness and other obligations of the Issuer, any other Obligor or any other guarantor of the Guaranteed Obligations owing to such U.S. Guarantor, whether now existing or hereafter arising, including, without limitation, all rights and claims described in Section 13.5(a), to the indefeasible payment in full in cash of all of the Guaranteed Obligations.  If the Required Holders so request, any such Financial Indebtedness or other obligations shall be enforced and performance received by such U.S. Guarantor as trustee for the holders and the proceeds thereof shall be paid over to the holders promptly, in the form received (together with any necessary endorsements) to be applied to the Guaranteed Obligations, whether matured or unmatured, as may be directed by the Required Holders, but without reducing or affecting in any manner the liability of any U.S. Guarantor under this Section 13.

 

(c)                                  If any amount or other payment is made to or accepted by any U.S. Guarantor in violation of Section 13.5(a) and (b), such amount shall be deemed to have been paid to such U.S. Guarantor for the benefit of, and held in trust for the benefit of, the holders and shall be paid over to the holders promptly, in the form received (together with any necessary endorsements) to be applied to the Guaranteed Obligations, whether matured or unmatured, as may be directed by the Required Holders, but without reducing or affecting in any manner the liability of such U.S. Guarantor under this Section 13.

 

(d)                                 Each U.S. Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Agreement and that its agreements set forth in this Section 13 (including this Section 13.5) are knowingly made in contemplation of such benefits.

 

(e)                                  Each U.S. Guarantor hereby agrees that, to the extent that a Guarantor shall have paid an amount hereunder to any holder that is greater than the net value of the benefits received, directly or indirectly, by such paying Guarantor as a result of the issuance and sale of the Notes (such net value, its “Proportionate Share”), such paying Guarantor shall, subject to Section 13.5(a) and (b), be entitled to contribution from any Guarantor that has not paid its Proportionate Share of the Guaranteed Obligations.  Any amount payable as a contribution under this Section 13.5(e) shall be determined as of the date on which the related payment is made by such Guarantor seeking contribution and each U.S. Guarantor acknowledges that the right to contribution hereunder shall constitute an asset of such U.S. Guarantor to which such contribution is owed.  Notwithstanding the foregoing, the provisions of this Section 13.5(e) shall in no respect limit the obligations and liabilities of any Guarantor to the holders of the Notes hereunder or under the Notes, any other Note Document or any other document, instrument or agreement executed in connection therewith, and each U.S. Guarantor shall remain jointly and severally liable for the full payment and performance of the Guaranteed Obligations.

 

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13.6.                     Reinstatement of Guarantee.

 

The Unconditional Guarantee shall continue to be effective, or be reinstated, as the case may be, if and to the extent at any time payment, in whole or in part, of any of the sums due to any holder on account of the Guaranteed Obligations is rescinded or must otherwise be restored or returned by a holder upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Issuer or any other guarantors, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to the Issuer or any other guarantors or any part of its or their property, or otherwise, all as though such payments had not been made.

 

13.7.                     Term of Guarantee.

 

The Unconditional Guarantee and all guarantees, covenants and agreements of the U.S. Guarantors contained in this Agreement shall continue in full force and effect and shall not be discharged until such time as all of the Guaranteed Obligations and all other obligations hereunder shall be indefeasibly paid in full in cash and shall be subject to reinstatement pursuant to Section 13.6.

 

13.8.                     Information Regarding the Issuer.

 

Each U.S. Guarantor now has and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the Issuer.  No holder shall have any duty or responsibility to provide any U.S. Guarantor with any credit or other information concerning the affairs, financial condition or business of the Issuer which may come into possession of the holders.  Each U.S. Guarantor is executing and delivering this Agreement and each other Note Document to which it is a party without reliance upon any representation by the holders including, without limitation, with respect to (a) the due execution, validity, effectiveness or enforceability of any instrument, document or agreement evidencing or relating to any of the Guaranteed Obligations or any loan or other financial accommodation made or granted to the Issuer, (b) the validity, genuineness, enforceability, existence, value or sufficiency of any property securing any of the Guaranteed Obligations or the creation, perfection or priority of any lien or security interest in such property or (c) the existence, number, financial condition or creditworthiness of other guarantors or sureties, if any, with respect to any of the Guaranteed Obligations.

 

13.9.                     Further Assurances.

 

Each U.S. Guarantor agrees to execute and deliver all such instruments and take all such action as the Required Holders may from time to time reasonably request in order to effectuate fully the purposes of the Unconditional Guarantee.

 

14.                               REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

 

14.1.                     Registration of Notes.

 

The Issuer shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, 

 

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each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Issuer shall not be affected by any notice or knowledge to the contrary.  The Issuer shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

 

14.2.                     Transfer and Exchange of Notes.

 

Upon surrender of any Note to the Issuer at the address and to the attention of the designated officer (all as specified in Section 19) for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other details for notices of each transferee of such Note or part thereof) within ten Business Days thereafter the Issuer shall execute and deliver, at the Issuer’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit 1(a).  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Issuer may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than US$100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than US$100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2.

 

14.3.                     Replacement of Notes.

 

Upon receipt by the Issuer at the address and to the attention of the designated officer (all as specified in Section 19(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

 

(a)                                 in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least US$50,000,000 (or its equivalent in other currencies) or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

 

(b)                                 in the case of mutilation, upon surrender and cancellation thereof,

 

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within ten Business Days thereafter the Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

 

15.                              PAYMENTS ON NOTES.

 

15.1.                     Place of Payment.

 

Subject to Section 15.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made at the principal office of JPMorgan Chase Bank, N.A. in New York, New York.  The Issuer may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Issuer in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.

 

15.2.                     Home Office Payment.

 

So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Issuer or the Guarantors, as applicable, will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Issuer in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Issuer made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Issuer at its principal executive office or at the place of payment most recently designated by the Issuer pursuant to Section 15.1.  Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Issuer in exchange for a new Note or Notes pursuant to Section 14.2.  The Issuer will afford the benefits of this Section 15.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 15.2.

 

16.                               EXPENSES, ETC.

 

16.1.                     Transaction Expenses.

 

Whether or not the transactions contemplated hereby are consummated, the Issuer will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement (including, without limitation, the Unconditional Guarantee), the Notes or the other Note Documents (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the 

 

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costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement (including, without limitation, the Unconditional Guarantee), the Notes or the other Note Documents, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Note Document, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of any member of the Group or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO, provided that such costs and expenses under this clause (c) shall not exceed US$3,500 (or its equivalent in other currencies).  The Issuer will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes).  In the event that the Notes are not issued on or before June 30, 2011 or, if prior to that date, the Company elects not to issue and sell the Notes, the Issuer agrees to pay to the Purchasers on June 30, 2011 or such earlier date, via wire transfer of immediately available funds, (i) the Cancellation Fee (as defined in the Commitment Letter) in accordance with the terms of the Commitment Letter and (ii) the Delayed Delivery Fee (as defined in the Commitment Letter).

 

16.2.                     Certain Taxes.

 

The Issuer agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery (but not the transfer) or the enforcement of any of the Notes or the execution and delivery or the enforcement of this Agreement or any other Note Document in the United States or the United Kingdom or of any amendment of, or waiver or consent under or with respect to, any Note Document, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Issuer pursuant to this Section 16 (provided that, where the Issuer has made a payment of such value added tax and the relevant holder reasonably determines that it has received or been granted a credit or repayment in respect of such value added tax from the relevant tax authority, such holder shall reimburse such amount to the Issuer), and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Issuer hereunder.

 

16.3.                     Survival.

 

The obligations of the Issuer under this Section 16 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of any Note Document, and the termination of any Note Document.

 

17.                               SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement, the Notes and the other Note Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and

 

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may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note.  All statements contained in any certificate or other instrument delivered by or on behalf of any Obligor pursuant to this Agreement shall be deemed representations and warranties of such Obligor under this Agreement.  Subject to the preceding sentence, this Agreement (including, without limitation, the Unconditional Guarantee), the Notes, the other Note Documents and the Commitment Letter embody the entire agreement and understanding among each Purchaser and the Obligors and supersede all prior agreements and understandings relating to the subject matter hereof.

 

18.                               AMENDMENT AND WAIVER.

 

18.1.                     Requirements.

 

This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of each Obligor and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 22, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 11 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, (iii) amend Section 8, 10(a), 11, 12, 18, 21 or 23.9, or (iv) release all or substantially all of the Unconditional Guarantee.

 

18.2.                     Solicitation of Holders of Notes.

 

(a)                                 Solicitation.  The Issuer will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes.  The Issuer will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 18 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

 

(b)                                 Payment.  No Obligor will directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.

 

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(c)                                  Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 18.2 by the holder of any Note that has transferred or has agreed to transfer such Note to an Obligor or any Affiliate of an Obligor and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring holder.

 

18.3.                     Binding Effect, etc.

 

Any amendment or waiver consented to as provided in this Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon each Obligor without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between any Obligor, on one hand, and the holder of any Note, on the other hand, nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

 

18.4.                     Notes Held by Obligors, etc.

 

Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by any Obligor or any Affiliates of any Obligor shall be deemed not to be outstanding.

 

19.                               NOTICES; ENGLISH LANGUAGE.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized international commercial delivery service (charges prepaid), or (b) by a recognized international commercial delivery service (with charges prepaid).  Any such notice must be sent:

 

(i)                                     if to a Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Issuer in writing,

 

(ii)                                  if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Issuer in writing,

 

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(iii)                               if to the Issuer, to the Issuer at its address set forth at the beginning hereof to the attention of the Secretary, or at such other address as the Issuer shall have specified to the holder of each Note in writing, or

 

(iv)                              if to any Guarantor, to such Guarantor at Anchorage Gateway, 5 Anchorage Quay, Salford, M50 3XE, United Kingdom, Attention: the Company Secretary, or at such other address as such Guarantor shall have specified to the holder of each Note in writing.

 

Notices under this Section 19 will be deemed given only when actually received.

 

Each document, instrument, financial statement, report, notice or other communication delivered in connection with this Agreement shall be in English or accompanied by an English translation thereof.

 

This Agreement and the Notes have been prepared and signed in English and the parties hereto agree that the English version hereof and thereof (to the maximum extent permitted by applicable law) shall be the only version valid for the purpose of the interpretation and construction hereof and thereof notwithstanding the preparation of any translation into another language hereof or thereof, whether official or otherwise or whether prepared in relation to any proceedings which may be brought in any jurisdiction in respect hereof or thereof.

 

20.                               REPRODUCTION OF DOCUMENTS.

 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital or other similar process and such Purchaser may destroy any original document so reproduced.  Each Obligor agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 20 shall not prohibit any Obligor or any holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

 

21.                               CONFIDENTIAL INFORMATION.

 

For the purposes of this Section 21, “Confidential Information” means information delivered to any Purchaser by or on behalf of any member of the Group in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of such Group member, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through 

 

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no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by any Group member or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (v) any Person from which it offers to purchase any security of the Issuer (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement.  Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 21 as though it were a party to this Agreement.  On reasonable request by any Obligor in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Obligors embodying the provisions of this Section 21.

 

22.                               SUBSTITUTION OF PURCHASER.

 

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Issuer, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 22), shall be deemed to refer to such Affiliate in lieu of such original Purchaser.  In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Issuer of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 22), shall no longer be deemed to refer to such Affiliate, but shall refer to

 

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such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

 

23.                               MISCELLANEOUS.

 

23.1.                     Successors and Assigns.

 

All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not.

 

23.2.                     Payments Due on Non-Business Days.

 

Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

 

23.3.                     Accounting Terms; IAS 39.

 

Except as otherwise specifically provided herein, all accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with the Accounting Principles, all computations made pursuant to this Agreement shall be made in accordance with the Accounting Principles, and all financial statements shall be prepared in accordance with the Accounting Principles.  Notwithstanding the foregoing or any other provision of this Agreement:

 

(a)                                 for purposes of determining Financial Indebtedness, indebtedness or debt (or any similar term) under any covenant or other term or provision contained in this Agreement (including any Incorporated Provision), any election by any Group member to measure any portion of a non-derivative financial liability at fair value (as permitted by International Accounting Standard 39 or any similar accounting standard), other than to reflect a hedge of such non-derivative financial liability (including interest rate, foreign currency and commodity hedges), shall be disregarded and such determination shall be made as if such election had not been made; and

 

(b)                                 if after the date of this Agreement a change in the Accounting Principles (as at the date of this Agreement) or the accounting practices is such as to affect:

 

(i)                                     the determination of the financial covenants contained in Section 9.1; and/or

 

(ii)                                  the determination of whether a Subsidiary is a Material Company,

 

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the Obligors and the Required Holders shall, at the Required Holders’ request, negotiate in good faith with a view to agreeing such amendments as may be necessary to grant to the holders protection comparable to that granted on the date of this Agreement, and any amendments so agreed will take effect on the date agreed between the Obligors and the holders; and if no such agreement is reached within 30 days of the Required Holders’ request, the Required Holders may instruct independent accountants to determine any amendments to those clauses or definitions which those accountants (acting as experts and not as arbitrators) consider appropriate to grant to the holders protection comparable to that granted on the date of this Agreement, which amendments shall take effect when so determined and notified to the Issuer.  Any amendments determined by such accountants shall be binding on all the parties hereto.

 

23.4.                     Severability.

 

Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

23.5.                     Construction, etc.

 

Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.

 

23.6.                     Counterparts.

 

This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.  Delivery of an executed signature page hereto by facsimile or e-mail transmission shall be effective as delivery of a manually signed counterpart of this Agreement.

 

23.7.                     Governing Law.

 

This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

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23.8.                     Jurisdiction and Process; Waiver of Jury Trial.

 

(a)                                 Each Obligor irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent permitted by applicable law, each Obligor irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(b)                                 Each Obligor agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 23.8(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

 

(c)                                  Each Non-U.S. Obligor consents to process being served by or on behalf of any holder of a Note in any suit, action or proceeding of the nature referred to in Section 23.8(a) by mailing a copy thereof by registered or certified or priority mail, postage prepaid, return receipt requested, or delivering a copy thereof in the manner for delivery of notices specified in Section 19, to the Issuer, as its agent for the purpose of accepting service of any process in the United States.  Each Non-U.S. Obligor agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

 

(d)                                 Nothing in this Section 23.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against any Obligor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(e)                                  Each Non-U.S. Obligor hereby irrevocably appoints the Issuer to receive for it, and on its behalf, service of process in the United States.  The Issuer hereby accepts such appointment and designation for the period from the date of the Closing to the date that is one calendar year after the latest maturity date of any Note as stated therein.

 

(f)                                   THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, THE UNCONDITIONAL GUARANTEE), 

 

71

 

THE NOTES, ANY OTHER FINANCE DOCUMENT OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

 

23.9.                     Obligation to Make Payment in U.S. Dollars.

 

Any payment on account of an amount that is payable hereunder or under the Notes in U.S. Dollars which is made to or for the account of any holder of Notes in any other currency, whether as a result of any judgment or order or the enforcement thereof or the realization of any security or the liquidation of any Obligor, shall constitute a discharge of the obligation of such Obligor, as applicable, under this Agreement or the Notes only to the extent of the amount of U.S. Dollars which such holder could purchase in the foreign exchange markets in London, England, with the amount of such other currency in accordance with normal banking procedures at the rate of exchange prevailing on the London Banking Day following receipt of the payment first referred to above.  If the amount of U.S. Dollars that could be so purchased is less than the amount of U.S. Dollars originally due to such holder, the Obligors agree to the fullest extent permitted by law, to indemnify and save harmless such holder from and against all loss or damage arising out of or as a result of such deficiency.  This indemnity shall, to the fullest extent permitted by law, constitute an obligation separate and independent from the other obligations contained in this Agreement and the Notes, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by such holder from time to time and shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or under the Notes or under any judgment or order.  As used herein the term “London Banking Day” shall mean any day other than Saturday or Sunday or a day on which commercial banks are required or authorized by law to be closed in London, England.

 

23.10.              Tax Forms.

 

(a)                                 Each Purchaser and each holder that is a “United States person” within the meaning of Section 7701(a)(30)of the Internal Revenue Code shall deliver to the Issuer executed originals of U.S. Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable law or reasonably requested by the Issuer as will enable the Issuer to certify to such Purchaser or holder’s exemption from U.S. backup withholding and/or information reporting requirements.

 

(b)                                 Each Purchaser and each holder that is not a “United States person” within the meaning of Section 7701(a)(30)of the Internal Revenue Code (a “Non-U.S. Holder”) shall deliver to the Issuer on or prior to the date on which such Non-U.S. Holder becomes a party to this Agreement (and from time to time thereafter upon the request of the Issuer), whichever of the following is applicable:

 

(i)                                     properly completed and duly executed originals of U.S. Internal Revenue Service Form W-8BEN (claiming a complete exemption from United States withholding tax on payments made under the benefits of an applicable income tax treaty);

 

72

 

(ii)                                  properly completed and duly executed originals of U.S. Internal Revenue Service Form W-8ECI (claiming a complete exemption from United States withholding tax because payments made are effectively connected with a U.S. trade or business);

 

(iii)                               properly completed and duly executed originals of U.S. Internal Revenue Service Form W-8IMY and all required supporting documentation (claiming a complete exemption from United States withholding tax on payments made); or

 

(iv)                              in the case of a Purchaser or holder claiming the benefits of the exemption for portfolio interest under Sections 871(h) or 881(c) of the Internal Revenue Code, (x) a certificate to the effect that such Non-U.S. Holder is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, (B) a “10 percent shareholder” of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal Revenue Code and (y) properly completed and duly executed originals of U.S. Internal Revenue Service Form W-8BEN.

 

(c)                                  Each Purchaser or holder that is a Non-U.S. Holder shall deliver to the Issuer such other tax forms or other documents as shall be prescribed by applicable law to demonstrate, where applicable, that payments under this Agreement to such Purchaser or holder are exempt from United States withholding tax imposed pursuant to FATCA.

 

 

[Remainder of page left intentionally blank.  Next page is signature page.]

 

73

 

If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Obligors, whereupon this Agreement shall become a binding agreement among you and the Obligors.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
BA   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
[Name]
    	
 
    
	
 
    	
 
    	
[Title]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LUXFER   HOLDINGS PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
[Name]
    	
 
    
	
 
    	
 
    	
[Title]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[Signature   Blocks for Original Subsidiary Guarantors to be inserted]
    

 

This Agreement is hereby

accepted and agreed to as

of the date thereof.

 

PURCHASERS

 

 

[ADD PURCHASER SIGNATURE BLOCKS]

 

 

Schedule A

 

INFORMATION RELATING TO PURCHASERS

 

	
Purchaser Name
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    	
 
    
	
Name in which Notes are to be registered
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF   AMERICA
    
	
 
    	
 
    	
 
    
	
Registration number(s); principal amount(s)
    	
 
    	
R-1;   $45,820,000
    
	
 
    	
 
    	
 
    
	
Payment   on account of Note
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Method
    	
 
    	
Federal Funds Wire Transfer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Account   information
    	
 
    	
JPMorgan   Chase Bank

New   York, NY

ABA No.:    021-000-021

Account   Name:  Prudential Managed Portfolio

Account No.:  P86188 (do not include spaces)

Ref:    “Accompanying Information” below
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Accompanying   information
    	
 
    	
Name   of Issuer:
    	
BA   HOLDINGS INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Description   of Security:
    	
6.19%   Senior Secured Guaranteed Notes due June 15, 2018
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PPN:
    	
05523*   AA5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Security   No.:
    	
INV11372
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Due   date and application (as among principal, interest and Yield-Maintenance   Amount) of the payment being made.
    
	
 
    	
 
    	
 
    	
 
    
	
Address   / Fax # for notices related to payments
    	
 
    	
The   Prudential Insurance Company of America

c/o   Investment Operations Group

Gateway   Center Two, 10th Floor

100   Mulberry Street

Newark, NJ 07102-4077

Attn:    Manager, Billings and Collections
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with   telephonic prepayment notices to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Manager,   Trade Management Group
    
	
 
    	
 
    	
Tel:
    	
973-367-3141
    
	
 
    	
 
    	
Fax:
    	
888-889-3832
    
	
 
    	
 
    	
 
    	
 
    
	
Address   for all other notices
    	
 
    	
The   Prudential Insurance Company of America

c/o   Prudential Capital Group

Two   Prudential Plaza, Suite 5600

180   N. Stetson Avenue

Chicago, IL  60601

Attn:  Managing Director, PRICOA
    
	
 
    	
 
    	
 
    
	
Instructions   re Delivery of Notes and closing sets
    	
 
    	
Prudential   Capital Group

2200   Ross Avenue, Suite 4200E

Dallas,   TX  75201

Attn:  William H. Bulmer, Esq.
    
						

 

Schedule A-1

 

	
Purchaser Name
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
Signature   Block
    	
 
    	
THE   PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
Tax   identification number
    	
 
    	
22-1211670
    

 

Schedule A-2

 

	
Purchaser Name
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    	
 
    
	
Name in which Notes are to be registered
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF   AMERICA
    
	
 
    	
 
    	
 
    
	
Registration number(s); principal amount(s)
    	
 
    	
R-2;   $11,680,000
    
	
 
    	
 
    	
 
    
	
Payment   on account of Note
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Method
    	
 
    	
Federal Funds Wire Transfer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Account   information
    	
 
    	
JPMorgan   Chase Bank

New   York, NY

ABA No.:    021-000-021

Account   Name:  The Prudential - Privest   Portfolio

Account No.:  P86189 (do not include spaces)

Ref:    “Accompanying Information” below
    
	
 
    	
 
    	
 
    	
 
    
	
Accompanying   information
    	
 
    	
Name   of Issuer:
    	
BA   HOLDINGS INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Description   of Security:
    	
6.19%   Senior Secured Guaranteed Notes due June 15, 2018
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PPN:
    	
05523*   AA5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Security   No.:
    	
INV11372
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Due   date and application (as among principal, interest and Yield-Maintenance   Amount) of the payment being made.
    
	
 
    	
 
    	
 
    	
 
    
	
Address / Fax # for notices related to payments
    	
 
    	
The   Prudential Insurance Company of America

c/o   Investment Operations Group

Gateway   Center Two, 10th Floor

100   Mulberry Street

Newark, NJ 07102-4077

Attn:    Manager, Billings and Collections

 

with   telephonic prepayment notices to:

 

Manager,   Trade Management Group

Tel:         973-367-3141

Fax:        888-889-3832
    
	
 
    	
 
    	
 
    
	
Address   for all other notices
    	
 
    	
The   Prudential Insurance Company of America

c/o   Prudential Capital Group

Two   Prudential Plaza, Suite 5600

180   N. Stetson Avenue

Chicago, IL  60601

Attn:  Managing Director, PRICOA
    
	
 
    	
 
    	
 
    
	
Instructions   re Delivery of Notes and closing sets
    	
 
    	
Prudential   Capital Group

2200   Ross Avenue, Suite 4200E

Dallas,   TX  75201

Attn:  William H. Bulmer, Esq.
    

 

Schedule A-3

 

	
Purchaser Name
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
Signature   Block
    	
 
    	
THE   PRUDENTIAL INSURANCE COMPANY OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
Tax   identification number
    	
 
    	
22-1211670
    

 

Schedule A-4

 

	
Purchaser Name
    	
 
    	
RGA   REINSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
Name   in which to register Note(s)
    	
 
    	
HARE &   CO.
    
	
 
    	
 
    	
 
    
	
Note   Registration Number(s); Principal Amount(s)
    	
 
    	
R-3;   $7,500,000
    
	
 
    	
 
    	
 
    
	
Payment on account of Note
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Method
    	
 
    	
Federal   Funds Wire Transfer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Account   Information
    	
 
    	
The Bank of New York Mellon

ABA #021-000-018

BNF Account No.:  IOC 566

For   credit to:  RGA Reinsurance Company

Ref:   “Accompanying Information” below.
    
	
 
    	
 
    	
 
    	
 
    
	
Accompanying   Information
    	
 
    	
Name   of Issuer:
    	
BA   HOLDINGS INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Description   of Security:
    	
6.19%   Senior Secured Guaranteed Notes due June 15, 2018
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PPN:
    	
05523*   AA5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Due   date and application (as among principal, interest and Yield-Maintenance   Amount) of the payment being made.
    
	
 
    	
 
    	
 
    	
 
    
	
Address for notices related to payments
    	
 
    	
RGA   Reinsurance Company

Attn:  Banking Dept.

1370   Timberlake Manor Parkway

Chesterfield,   MO 63017-6039
    
	
 
    	
 
    	
 
    	
 
    
	
Address for all other notices
    	
 
    	
Prudential   Private Placement Investors, L.P.

c/o   Prudential Capital Group

Two   Prudential Plaza, Suite 5600

180   N. Stetson Avenue

Chicago, IL  60601

Attn:  Managing Director, PRICOA
    
	
 
    	
 
    	
 
    
	
Instructions   re: delivery of Notes
    	
 
    	
The   Bank of New York Mellon

One   Wall Street - 3rd Floor Window A

New   York, NY  10256

Attn:  Anthony V. Saviano (212-635-6742)

Ref:  RGA Private Placement Prudential Financial   Account No. 0000128863

Cc:  Prudential Capital Group
    
	
 
    	
 
    	
 
    
	
Form signature   block
    	
 
    	
RGA   REINSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Prudential   Private Placement Investors,
    
	
 
    	
 
    	
 
    	
L.P.   (as Investment Advisor)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Prudential   Private Placement Investors, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
(as   its General Partner)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tax   Identification Number
    	
 
    	
43-1235868
    
							

 

Schedule A-5

 

Schedule B

 

DEFINED TERMS

 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“ABL Facility” means the facility provided pursuant to the Facility Agreement dated April 26, 2006 (as amended and restated pursuant to an amendment and restatement deed dated March 5, 2009) by and among Luxfer Group 2000 Limited, Luxfer Group Limited and others as borrowers and guarantors thereunder and Bank of America, N.A., as original lender, original issuer, original hedging party, facility agent and security trustee.

 

“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 A-1 or higher by Standard & Poor’s Rating Services, F(1) + or higher by Fitch Ratings Ltd or Aaa 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 Required Holders.

 

“Accounting Principles” means the international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements or if required by the applicable law the generally acceptable accounting principles of the United States.

 

“Accounting Reference Date” has the meaning given to it in section 391 of the Companies Act 2006.

 

“Additional Subsidiary Guarantor” is defined in Section 1(b).

 

“Adjusted EBITDA” means, in respect of any Relevant Period, EBITDA for that Relevant Period after:

 

(a)                                 adding the amount of any cash receipts (and deducting the amount of any cash payments) during such Relevant Period in respect of any Exceptional Items not already taken account of in calculating EBITDA for any Relevant Period but excluding:

 

(i)                                     Exceptional Items relating to cash receipts or cash paid for finance costs or discontinued operations and

 

(ii)                                  cash payments for Permitted Acquisitions and cash received for Permitted Disposals;

 

(b)                                 adding the amount of any increase in provisions, which are not Current Assets or Current Liabilities and deducting the amount of any non-cash credits which are 

 

Schedule B-1

 

not Current Assets or Current Liabilities) in each case to the extent taken into account in establishing EBITDA;

 

(c)                                  deducting the cash amount of maintenance capital expenditure actually paid (which shall be not more than £8,000,000 (or its equivalent in any currency)) during that Relevant Period by any member of the Group except (in each case) to the extent funded from the proceeds of Permitted Disposals, third party grants, third party contributions or Insurance Proceeds) and

 

(d)                                 deducting the amount of any cash dividends or distributions paid or made by the Parent Guarantor in respect of that Relevant Period;

 

and so that no amount shall be added (or deducted) more than once.

 

“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.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Issuer or the Parent Guarantor.

 

“Agreed Form”  means, in relation to any document, the form of such document which is previously agreed in writing by or on behalf of the Purchasers and the Obligors or, if not so agreed, is in the form specified by the Purchasers.

 

“Annual Financial Statements” means the financial statements for a Financial Year delivered pursuant to Section 7.1(b).

 

“Anti-Terrorism Law” means any U.S. state or federal law relating to terrorism or money laundering, including the Executive Order, the USA Patriot Act and the Money Laundering Control Act of 1986, Public Law 99-570.

 

“Articles” means the articles of association of the Parent Guarantor and the articles of association of the Issuer.

 

“assets” includes present and future properties, revenues and rights of every description (including any right to receive such revenues).

 

“Auditors” means one of PricewaterhouseCoopers LLP, Ernst & Young LLP, KPMG Audit PLC, Deloitte & Touche LLP, Grant Thornton LLP, Soren McAdam Christenson LLP or any other firm of independent public accountants of recognized international standing.

 

“Authorization” means an authorization, consent, approval, resolution, license, exemption, filing, notarization or registration.

 

“Average Exchange Rate” means the 12 month average of the month end exchange rates as referenced to Reuters.

 

“Bank Agent” means Lloyds TSB Bank plc, as agent of the Finance Parties (as defined in the Bank Facilities Agreement).

 

Schedule B-2

 

“Bank Document” means the Finance Documents (as defined in the Bank Facilities Agreement as in effect on the date hereof) and each other document executed in connection with the Bank Facilities Agreement or otherwise relating thereto).

 

“Bank Lender” means a Lender (as defined in the Bank Facilities Agreement).

 

“Bank Facilities Agreement” means the Senior Facilities Agreement, dated as of May 13, 2011, among (a) the Parent Guarantor, (b) Lloyds TSB Bank plc and Clydesdale Bank plc (trading as Yorkshire Bank), as mandated lead arrangers, (c) the parties listed in part 1 schedule 1 thereto as original borrowers, (d) the parties listed in part 2 of schedule 1 thereto as original guarantors, (e) the financial institutions listed in part 3 of schedule 1 thereto as lenders, (f) Lloyds TSB Bank plc, Clydesdale Bank plc (trading as Yorkshire Bank) and Bank of America, N.A., as ancillary facilities providers, and (g) the Bank Agent, as the same may from time to time be amended, restated, supplemented, modified or extended; provided that any such amendment, restatement, supplement, modification or extension shall be made in accordance with the terms of this Agreement and the Intercreditor Deed.

 

“Base Case Model” means the financial model dated April 4, 2011 in Agreed Form prepared by the Parent Guarantor including profit and loss account, balance sheet and cashflow projections relating to the Group.

 

“Bilateral Facility” has the meaning given to such term in the Bank Facilities Agreement (as in effect on the date hereof).

 

“Blocked Person” is defined in Section 5.30(d).

 

“Budget” means:

 

(a)                                 in relation to the period beginning on January 1, 2011 and ending on December 31, 2011, the Base Case Model to be delivered by the Obligors to the holders pursuant to Section 4.15 and

 

(b)                                 in relation to any other period, the budget delivered by the Parent Guarantor to the holders in respect of that period pursuant to, and in accordance with, Section 7.1(f).

 

“Business Day” means (a) for the purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or London, England are required or authorized to be closed.

 

“Cash Equivalent Investments” means at any time:

 

(a)                                 certificates of deposit maturing within 6 Months after the relevant date of calculation and issued by an Acceptable Bank,

 

Schedule B-3

 

(b)                                 any investment in marketable debt obligations issued or guaranteed by the government of the United States of America or any member state of the European Economic Area, or by an instrumentality or agency of any of them having an equivalent credit rating, maturing within 3 Months after the relevant date of calculation and not convertible or exchangeable to any other security,

 

(c)                                  commercial paper not convertible or exchangeable to any other security:

 

(i)                                     for which a recognized trading market exists,

 

(ii)                                  issued by an issuer incorporated in the United States of America or any member state of the European Economic Area,

 

(iii)                               which matures within 3 Months after the relevant date of calculation, and

 

(iv)                              which has a credit rating of either A-1 or higher by Standard & Poor’s Rating Services, F-1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors Service Limited, or, if no rating is available in respect of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations, an equivalent rating,

 

(d)                                 any investment in money market funds which:

 

(i)                                     have a credit rating of either A-1 or higher by Standard & Poor’s Rating Services, F-1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investors Service Limited,

 

(ii)                                  invest substantially all their assets in securities of the types described in paragraphs (a) to (c), and

 

(iii)                               can be turned into cash on not more than 30 days’ notice or

 

(e)                                  any other debt security approved by the Required Holders,

 

in each case, denominated in U.S. Dollars, Euros, Sterling or an Optional Currency (as defined in the Bank Facilities Agreement as in effect on the date hereof) and to which an Obligor is alone or together with other Obligors beneficially entitled at that time and which is not issued or guaranteed by any member of the Group or subject to any Security.

 

“Change of Control” means any Person or group of Persons acting in concert gains direct or indirect control of the Parent Guarantor.  For the purposes of this definition:

 

(a)                                 control of the Parent Guarantor means:

 

(i)                                     the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

Schedule B-4

 

(A)                               cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the Parent Guarantor or

 

(B)                               appoint or remove all, or the majority, of the directors or other equivalent officers of the Parent Guarantor or

 

(C)                               give directions with respect to the operating and financial policies of the Parent Guarantor with which the directors or other equivalent officers of the Parent Guarantor are obliged to comply; or

 

(ii)                                  (the holding beneficially of more than 50% of the issued share capital of the Parent Guarantor (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); and

 

(b)                                 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, directly or indirectly, of shares in the Parent Guarantor by any of them, either directly or indirectly, to obtain or consolidate control of the Parent Guarantor.

 

“Change of Control Notice” is defined in Section 8.7

 

“CISADA” is the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111—195).

 

“Closing” is defined in Section 3.

 

“Commitment Letter” means that certain letter agreement dated as of 21 March 2011 between the Parent Guarantor and Pricoa Capital Group, a copy of which is attached hereto as Exhibit 4.18.

 

“Compliance Certificate” means a certificate substantially in the form set out in Exhibit 7.2.

 

“Confidential Information” is defined in Section 21.

 

“Contribution Notice” means a contribution notice issued by the Pensions Regulator under section 38 or section 47 of the Pensions Act 2004.

 

“Current Assets” means the aggregate (on a consolidated basis) of all inventory, work in progress, trade and other receivables of each member of the Group including prepayments in relation to operating items and sundry debtors (but excluding cash and Cash Equivalent Investments) maturing within 12 Months from the date of computation but excluding amounts in respect of:

 

(a)                                 receivables in relation to corporation and deferred Tax,

 

Schedule B-5

 

(b)                                 Exceptional Items and other non-operating items,

 

(c)                                  insurance claims, and

 

(d)                                 any interest owing to any member of the Group.

 

“Current Liabilities” means the aggregate (on a consolidated basis) of all liabilities (including trade creditors, accruals and provisions) of each member of the Group falling due within 12 Months from the date of computation but excluding amounts in respect of:

 

(a)                                 liabilities for Financial Indebtedness and Finance Charges,

 

(b)                                 liabilities for corporation and deferred Tax,

 

(c)                                  Exceptional Items and other non-operating items,

 

(d)                                 insurance claims, and

 

(e)                                  liabilities in relation to dividends declared but not paid by the Parent Guarantor or by a member of the Group in favor of a Person which is not a member of the Group.

 

“Czech Subsidiary” means Magnesium Elektron Recycling CZ S.R.O., a limited liability company organized under the laws of the Czech Republic.

 

“Debt Service” means in respect of any Relevant Period the aggregate of:

 

(a)                                 Net Finance Charges for such Relevant Period,

 

(b)                                 the net amount of any cash receipts during that Relevant Period in respect of any corporation tax rebates or credits and the amount actually paid or due and payable in respect of corporation taxes during that Relevant Period by any member of the Group,

 

(c)                                  the aggregate of all scheduled repayments of Financial Indebtedness falling due during such Relevant Period but excluding:

 

(i)                                     any amounts repaid or falling due under any overdraft or revolving facility (including, without limitation, the facility available pursuant to the Bank Facilities Agreement or any Permitted Refinancing Agreement) and which were available for simultaneous redrawing according to the terms of such facility,

 

(ii)                                  any such obligations owed to any member of the Group and

 

(iii)                               any prepayment of Financial Indebtedness existing on the date of the Closing which is required to be repaid under the terms of this Agreement, and

 

(d)                                 the amount of the capital element of any payments in respect of such Relevant Period payable under any Finance Lease entered into by any member of the Group,

 

Schedule B-6

 

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

 

“Debt Service Cover” means the ratio of Adjusted EBITDA to Debt Service in respect of any Relevant Period.

 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

 

“Default Rate” means that rate of interest that is the greater of (i) 2% per annum above the rate of interest stated in clause (a) of the first paragraph of the Notes and (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. in New York, New York as its “base” or “prime” rate.

 

“Defined Benefit Scheme” means each of the following:

 

(a)                                 Luxfer Group Pension Plan,

 

(b)                                 Luxfer Group Supplementary Pension Plan,

 

(c)                                  BA Holdings, Inc. Defined Benefit Pension Plan,

 

(d)                                 Pension Plan for Hourly Employees of Luxfer Inc.,

 

(e)                                  BA Holdings, Inc. Executive Supplemental Retirement Plan,

 

(f)                                   IPC Supplementary Pension scheme, and

 

(g)                                  IDR Termination Indemnities.

 

“Designated Person” means a Person:

 

(a)                                 listed on the annex to the Executive Order;

 

(b)                                 owned or controlled by, or acting for or on behalf of, any Person listed on the annex to the Executive Order;

 

(c)                                  listed on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Asset Control of the United States Department of the Treasury, as updated or amended from time to time;

 

(d)                                 whose property has been blocked, or is subject to seizure, forfeiture or confiscation, under any applicable Anti-Terrorism Law; or

 

(e)                                  that commits, threatens or conspires to commit or support “terrorism” as defined in the Executive Order.

 

“Disclosure Documents” is defined in Section 5.11.

 

Schedule B-7

 

“Disposal” means a sale, lease or license (other than an occupational rack rent lease or license), transfer, loan or other disposal by a Person of any asset, undertaking or business (whether by a voluntary or involuntary single transaction or series of transactions).

 

“Disposal Proceeds” means the consideration receivable by any member of the Group (including any amount receivable in repayment of intercompany debt) for any Disposal made by any member of the Group except for Excluded Disposal Proceeds.

 

“Disposal Prepayment Date” is defined in Section 8.8.

 

“Disposal Prepayment Offer” is defined in Section 8.8.

 

“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 Note Documents (or otherwise in order for the transactions contemplated by the Note Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the parties hereto, 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 hereto preventing that, or any other party hereto:

 

(i)                                     from performing its payment obligations under the Note Documents, or

 

(ii)                                  from communicating with other parties hereto in accordance with the terms of the Note Documents,

 

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

 

“Dormant Subsidiary” means a member of the Group which does not trade (for itself or as agent for any Person) and does not own, legally or beneficially, assets (including indebtedness owed to it) which in aggregate have a value of £20,000 or more or its equivalent in other currencies.

 

“EBIT” means in respect of any Relevant Period the consolidated operating profit of the Parent Guarantor before taxation for such Relevant Period (excluding the results from discontinued operations):

 

(a)                                 before deducting any interest, commission, fees, discounts, prepayment fees, premiums or charges, gains or losses on Financial Indebtedness and other finance payments whether paid, payable or capitalized by any member of the Group (calculated on a consolidated basis) in respect of such Relevant Period,

 

Schedule B-8

 

(b)                                 not including any accrued interest owing or paid to any member of the Group,

 

(c)                                  before taking into account any Exceptional Items,

 

(d)                                 before deducting any Transaction Costs,

 

(e)                                  before taking into account any gain or loss arising from an upward or downward revaluation of any other asset except for the impairment of working capital items,

 

(f)                                   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,

 

(g)                                  before taking into account any unrealized gains or losses on any derivative instrument (other than any derivative instrument which is accounted for on a hedge accounting basis),

 

(h)                                 before taking into account any Pension Payment to the extent made after the date of this Agreement but before the first anniversary of the date of this Agreement, and

 

(i)                                     excluding any profit or loss arising from the disposal of fixed assets,

 

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 for such Relevant Period.

 

“EBITA” means in respect of any Relevant Period, EBIT for that Relevant Period after adding back any amount attributable to the impairment or amortization of assets or impairment of members of the Group and non-cash based charges and amortization costs associated with equity stock-based compensation schemes for such Relevant Period.

 

“EBITDA” means in respect of any Relevant Period, EBITA for such Relevant Period after adding back any amount attributable to the depreciation of assets of members of the Group for such Relevant Period.

 

“Employee Plan” means, at any time, an “employee pension benefit plan” as defined in section 3(32) of ERISA and subject to Title IV of ERISA (other than a Multiemployer Plan) then or at any time during the previous six years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or ERISA Affiliate.

 

“English Guarantee Agreement” is defined in Section 1(b).

 

“English Guarantor” means the Parent Guarantor and each other Guarantor incorporated or formed under the laws of England and Wales.

 

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

 

Schedule B-9

 

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

 

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

 

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

 

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

 

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

 

(a)                                 the pollution or protection of the Environment,

 

(b)                                 the conditions of the workplace, or

 

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

 

“Environmental Permits” means any permit and other Authorization 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 any Real Property owned or used by any member of the Group.

 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

 

“ERISA Affiliate” means each person (as defined in section 3(9) of ERISA) that is a member of a controlled group of, or under common control with, any Obligor, within the meaning of section 414 of the Internal Revenue Code.

 

“ERISA Event” means any of the following events:

 

(a)                                 any reportable event, as defined in section 4043(c) of ERISA, with respect to an Employee Plan as to which the PBGC has not by regulation waived the requirement of section 4043(a) of ERISA that it be notified within thirty days of the occurrence of that event.  However, a failure to meet the minimum funding standard of section 412 of the Internal Revenue Code or section 302 of ERISA shall be a reportable event for the purposes of this paragraph (a) regardless of the issuance of any waiver under said sections;

 

(b)                                 the requirements of subsection (1) of section 4043(b) of ERISA (without regard to subsection (2) of that section) are met with respect to a contributing sponsor, as defined in section 4001(a)(13) of ERISA, of an Employee Plan and an event described in paragraph (9), (10), (11), (12) or (13) of section 4043(c) of ERISA is reasonably expected to occur with respect to that Employee Plan within the following 30 days;

 

Schedule B-10

 

(c)                                  the filing under section 4041(c) of ERISA of a notice of intent to terminate any Employee Plan;

 

(d)                                 the termination of any Employee Plan under section 4041(c) of ERISA;

 

(e)                                  the institution of proceedings under section 4042 of ERISA by the PBGC for the termination of, or the appointment of a trustee to administer, any Employee Plan;

 

(f)                                   the failure to make a required contribution to any Employee Plan that would result in the imposition of an encumbrance pursuant to section 412 of the Internal Revenue Code or section 302 of ERISA; or

 

(g)                                  engagement with an Employee Plan in a non-exempt prohibited transaction within the meaning of section 4795 of the Internal Revenue Code or section 406 of ERISA (other than as a result of an incorrect representation of a Purchaser pursuant to Section 6.2).

 

“ESOP” means the Luxfer Group Employee Share Ownership Plan established by a deed of trust dated 3 November 1997.

 

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

 

“Event of Default” is defined in Section 10.

 

“Exceptional Items” means any exceptional, one-off or non-recurring items which represent gains or losses including (without limitation) those arising on:

 

(a)                                 the restructuring of the activities of an entity, including the associated redundancy program costs and reversals of any provisions for the cost of restructuring,

 

(b)                                 disposals, revaluations or impairment of non-current assets,

 

(c)                                  disposals of assets associated with discontinued operations and acquisition costs in relation to the acquisition of new operations,

 

(d)                                 Environmental remediation costs and provisions not in the ordinary course of business,

 

(e)                                  one-off gains and losses recognized on the early termination or curtailment of or change in employee retirement defined benefits, or

 

(f)                                   disposal of a business operation which is not classified as a discontinued operation for accounting purposes.

 

“Excluded Deposit Accounts” means each of the following deposit accounts:

 

(a)                                 any deposit account specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of the Parent Guarantor’s or any of its Subsidiaries’ salaried employees,

 

Schedule B-11

 

(b)                                 any deposit account credited at any time with an amount not exceeding US$100,000 (or its equivalent in any currency) individually and, when aggregated with the amounts in all other such accounts, US$500,000 (or its equivalent in any currency), and

 

(c)                                  any “lock-box” deposit account the balance of which is swept on a daily basis into other deposit accounts of the Parent Guarantor or any of its Subsidiaries that are deposit accounts as set forth in the preceding clauses (a) or (b) or deposit accounts held with a lender under the Bank Facilities Agreement or any Permitted Refinancing Agreement.

 

“Excluded Disposal Proceeds” means the proceeds of a Disposal from a Permitted Disposal or Permitted Transaction unless such proceeds are to be used to repay or prepay Financial Indebtedness under the Bank Facilities Agreement or a Permitted Refinancing Agreement at any time when a Default or Event of Default exists.

 

“Excluded Insurance Proceeds” means any proceeds of an insurance claim which the Issuer notifies the holders are, or are to be, applied:

 

(a)                                 to meet a third party claim,

 

(b)                                 to cover operating losses in respect of which the relevant insurance claim was made,

 

(c)                                  to the replacement, reinstatement and/or repair of the assets or otherwise in amelioration of the loss in respect of which the relevant insurance claim was made,

 

(d)                                 by an Obligor to purchase assets useful to the business of the Obligors,

 

in each case as soon as possible after receipt, or

 

(e)                                  which do not exceed £10,000,000 (or its equivalent) when aggregated together with the proceeds of all other insurance claims (excluding those referred to in paragraphs (a), (b) and (c) of this definition) during the term of this Agreement.

 

“Executive Order” means Executive Order No. 13224 of September 23, 2001- Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism, 66 U.S. Fed. Reg. 49079 (2001), as amended.

 

“Existing Note Documents” means:

 

(a)                                 the indenture dated February 6, 2007 made between the Parent Guarantor and The Bank of New York; and

 

(b)                                 each note issued pursuant to the indenture referred to in paragraph (a) above.

 

Schedule B-12

 

“Existing Notes” means £71,850,977 floating rate notes due 2012 issued by the Parent Guarantor.

 

“FATCA” means Sections 1471, 1472, 1473 and 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable) and any current or future regulations or official interpretations thereof.

 

“Favored Lender Notice” is defined in Section 9.36.

 

“Finance Charges” means for any Relevant Period the aggregate amount of the accrued interest, commission, fees, discounts, prepayment fees, premiums or charges and other finance payments in respect of Financial Indebtedness whether paid payable or capitalized by any member of the Group (calculated on a consolidated basis) in respect of such 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 commission, fees, discounts and other finance payments payable by (and deducting any such amounts payable to) any member of the Group under any interest rate hedging arrangement, and

 

(d)                                 taking no account of any unrealized gains or losses on any financial instruments other than any derivative investments which are accounted for on a hedge accounting basis,

 

(e)                                  excluding any Transaction Costs, and

 

(f)                                   excluding any interest cost or expected return on plan assets in relation to any post employment benefit schemes,

 

so that no amount shall be added (or deducted) more than once.

 

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

 

“Financial Indebtedness” means, without double counting, any indebtedness for or in respect of:

 

(a)                                 monies borrowed and debit balances at banks or other financial institutions,

 

(b)                                 acceptance under any acceptance credit or bill discounting facility (or dematerialized equivalent),

 

(c)                                  any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument,

 

Schedule B-13

 

(d)                                 any Finance Leases,

 

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

 

(f)                                   any Treasury Transaction (and, when calculating the value of that Treasury 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 Treasury Transaction, that amount) shall be taken into account),

 

(g)                                  any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability of an entity which is not a member of the Group which liability would fall within one of the other paragraphs of this definition,

 

(h)                                 any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 180 days after the date of supply,

 

(i)                                     any amount raised under any other transaction (including any forward sale or purchase sale and sale back or sale and leaseback agreement) having the commercial or economic effect of a borrowing or otherwise classified as borrowings under the Accounting Principles,

 

(j)                                    any amount raised by the issue of redeemable shares which are redeemable (other than at the option of the issuer thereof) before the latest maturity date of any Note as stated therein or are otherwise classified as borrowings under the Accounting Principles, and

 

(k)                                 the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a) to (j).

 

“Financial Quarter” means a 3 calendar months period ending on March 31, June 30, September 30 or December 31 in any Financial Year.

 

“Financial Support Direction” means a financial support direction issued by the Pensions Regulator under section 43 of the Pensions Act 2004.

 

“Financial Year” means a financial year of the Parent Guarantor.

 

“First Amendment Effective Date” means November 30, 2012.

 

“French Subsidiary” means Luxfer Gas Cylinders S.A.S., a société par actions simplifiées organized under the laws of France.

 

“Funding Instructions” is defined in Section 4.17.

 

Schedule B-14

 

“Funds Flow Statement” means a funds flow statement detailing the proposed movement of the funds received pursuant to the Notes and the Bank Facilities Agreement in payment of the relevant redemption amounts in respect of the ABL Facility and the Existing Notes.

 

“Governmental Authority” means

 

(a)                                 the government of

 

(i)                                     the United States of America or England or any State or other political subdivision of either thereof, or

 

(ii)                                  any other jurisdiction in which the Parent Guarantor or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Parent Guarantor or any Subsidiary, or

 

(b)                                 any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

 

“Group” means the Parent Guarantor and each of its Subsidiaries for the time being.

 

“Group Structure Chart” is defined in Section 5.23.

 

“guarantee” means (other than in Section 13) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any Person or to make an investment in or loan to any Person or to purchase assets of any Person where, in each case, such obligation is assumed in order to maintain or assist the ability of such Person to meet its indebtedness.

 

“Guaranteed Obligations” is defined in Section 13.1.

 

“Guarantor” means the Parent Guarantor and each Subsidiary Guarantor.

 

“Hedging Agreement” has the meaning given to such term in the Bank Facilities Agreement (as in effect on the date hereof).

 

“Hedging Letter” is defined in Section 4.20.

 

“HMRC” means the United Kingdom HM Revenue and Customs.

 

“holder” means, with respect to any Note the Person in whose name such Note is registered in the register maintained by the Issuer pursuant to Section 14.1.

 

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

 

“Incorporated Provision” is defined in Section 9.36.

 

Schedule B-15

 

“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.

 

“Information Memorandum” means the document dated 7 January 2011 in the form approved by the Parent Guarantor concerning the Group which, at the request of the Parent Guarantor and on its behalf, was provided to the Purchasers in relation to this transaction prior to the date of this Agreement.

 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

 

“Insurance Prepayment Date” is defined in Section 8.8.

 

“Insurance Prepayment Offer” is defined in Section 8.8.

 

“Insurance Proceeds” means the proceeds of any insurance claim under any insurance maintained by any member of the Group except for Excluded Insurance Proceeds and after deducting any reasonable expenses in relation to that claim which are incurred by any member of the Group to Persons who are not members of the Group.

 

“Intellectual Property” means:

 

(a)           any patents, trademarks, service marks, designs, business names, copyrights, database rights, design rights, domain names, moral rights, inventions, confidential information, know-how and other intellectual property rights and interests (which may now or in the future subsist), whether registered or unregistered and

 

(b)           the benefit of all applications and rights to use such assets of each member of the Group (which may now or in the future subsist).

 

“Intercreditor Deed” means the Intercreditor Deed dated as of the date hereof and as amended and restated on or around the First Amendment Effective Date and made between, among others, the Obligors, the Bank Agent, the Bank Lenders (as senior lenders), Lloyds TSB Bank plc and Clydesdale Bank PLC (trading as Yorkshire Bank) (as senior arrangers), the Ancillary Lenders (as defined in the Intercreditor Deed (as senior lenders), each Bilateral Lender (as defined in the Intercreditor Deed), the Purchasers and the Intra-Group Lenders (as defined in the Intercreditor Deed), as the same may from time to time be amended, amended and restated, modified or supplemented.

 

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

 

“Internal Revenue  Code”  means the U.S. Internal Revenue Code of 1986, as amended from time to time, and any and all regulations and rulings issued thereunder.

 

Schedule B-16

 

“Issuer” is defined in the first paragraph of this Agreement.

 

“Joinder Agreement” is defined in Section 1(b).

 

“Joint Venture” means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity.

 

“Legal Reservations” means:

 

(a)           the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganization and other laws generally affecting the rights of creditors,

 

(b)           the time barring of claims under the Limitation Act 1980 and the Foreign Limitation Periods Act 1984, the possibility that an undertaking to assume liability for or indemnify a Person against non-payment of UK stamp duty may be void and defenses of set-off or counterclaim,

 

(c)           the possibility that the courts may recharacterize any security purporting to be a fixed charge as a floating charge (or vice versa), and

 

(d)           similar principles, rights and defenses under the laws of any Relevant Jurisdiction.

 

“Leverage” means in respect of any Relevant Period the ratio of Total Net Debt on the last day of such Relevant Period to EBITDA in respect of such Relevant Period.

 

“Major Breach” means any breach of:

 

(a)           Section 9.8 (Change of Business),

 

(b)           Section 9.9 (Acquisitions),

 

(c)           Section 9.12 (Pari Passu Ranking),

 

(d)           Section 9.13 (Negative Pledge),

 

(e)           Section 9.14 (Disposals),

 

(f)            Section 9.16 (Loans or Credit),

 

(g)           Section 9.17 (No Guarantees or Indemnities),

 

(h)           Section 9.18 (Dividends and Share Redemption),

 

(i)            Section 9.19 (Bank Facilities Agreement),

 

(j)            Section 9.20 (Financial Indebtedness), and

 

Schedule B-17

 

(k)           Section 9.22 (Insurance).

 

“Major Default” means any of the following Events of Default:

 

(a)           Section 10(a) (Non-payment),

 

(b)           Section 10(b) (Financial Covenants and Other Obligations),

 

(c)           Section 10(c) (Other Obligations) but only insofar as it relates to a Major Breach,

 

(d)           Section 10(d) (Misrepresentation) but only insofar as it relates to a Major Representation,

 

(e)           Section 10(f) (Insolvency) and Section 10(g) (Insolvency Proceedings),

 

(f)            Section 10(i) (Unlawfulness and Invalidity) and Section 10(o) (Repudiation and Rescission of Agreements), and

 

(g)           Section 10(s) (ERISA).

 

“Major Representation” means each of the representations set out in Section 5.1 (Status) to Section 5.5(a) (Validity and Admissibility in Evidence) inclusive, Section 5.24 (Obligors), Section 5.30 (U.S. Regulations) and Section 5.31 (Sanctions).

 

“Make-Whole Amount” is defined in Section 8.6.

 

“Material” means material in relation to the business, operations, affairs, financial condition, assets, properties or prospects of the Group taken as a whole.

 

“Material Adverse Effect” means in the reasonable opinion of the Required Holders a material adverse effect on:

 

(a)           the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole, or

 

(b)           the ability of an Obligor to perform its payment obligations under the Note Documents (taking into account the financial resources available to that Obligor from other members of the Group), or

 

(c)           the rights or remedies of any holder under any of the Note Documents.

 

“Material Company” means, at any time:

 

(a)           an Obligor,

 

(b)           a wholly-owned member of the Group that holds shares in an Obligor, or

 

(c)           a Material Subsidiary.

 

Schedule B-18

 

“Material Provision” means each of Sections 7, 9.7, 9.8, 9.9, 9.12, 9.13, 9,14, 9.16, 9.17, 9.18, 9.19, 9.20, 9.22, 9.31, 9.32 and 9.33 and each Incorporated Provision.

 

“Material Subsidiary” means a Subsidiary of the Parent Guarantor which has earnings before interest, tax and amortization (calculated on the same basis as EBITA) representing 5% or more of EBITA, or has gross assets, (excluding intra-Group items) representing 5% or more of the gross assets of the Group, calculated on a consolidated basis.  The foregoing shall be determined by reference to the most recent Compliance Certificate 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.  However, if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the financial statements shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary (that adjustment being certified by the Group’s Auditors as representing an accurate reflection of the revised EBITA and gross assets of the Group).  A report by the Auditors of the Parent Guarantor that a Subsidiary is or is not a Material Subsidiary shall, in the absence of manifest error, be conclusive and binding on all parties to this Agreement.

 

“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)           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 and

 

(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.

 

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

 

“Monthly Financial Statements” means the financial statements for a month delivered pursuant to Section 7.1(a).

 

“More Favorable Provision” is defined in Section 9.36.

 

“Multiemployer Plan” means, at any time, a multiemployer plan (as defined in section 4001(a)(3) of ERISA) then or at any time during the previous five years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or an ERISA Affiliate.

 

“NAIC” means the National Association of Insurance Commissioners or any successor thereto.

 

“Net Finance Charges” means, for any Relevant Period, the Finance Charges for such Relevant Period after deducting any interest payable in such Relevant Period to any member of the Group on any cash or Cash Equivalent Investment.

 

Schedule B-19

 

“Non-U.S. Obligor” means an Obligor that is not a U.S. Obligor.

 

“Non-U.S. Plan” means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by a member of the Group primarily for the benefit of employees of members of the Group residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Internal Revenue Code.

 

“Note Document” means this Agreement, each Note, the Intercreditor Deed, each Joinder Agreement, each English Guarantee Agreement and each other guarantee agreement executed by any Additional Subsidiary Guarantor in accordance with Sections 1(b) and 9.31, and the Hedging Letter, in each case as amended, novated, supplemented or restated (however fundamentally).

 

“Notes” is defined in Section 1.

 

“Obligor” means the Issuer and each Guarantor.

 

“OFAC Sanctions Regulations” means the U.S. sanctions administered by the Office of Foreign Asset Control of the U.S. Department of the Treasury as amended from time to time, and codified in 31 C.F.R. 500 et. seq.

 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of an Obligor whose responsibilities extend to the subject matter of such certificate.

 

“Original Financial Statements” means:

 

(a)           in relation to the Parent Guarantor, (i) in respect of any representation set forth in Section 5 made as of the date of this Agreement and as of the date of the Closing, its consolidated audited financial statements for its financial year ended 31 December 31, 2009 and its consolidated unaudited financial statements for its financial year ended December 31, 2010 and (ii) in any other respect its consolidated audited financial statements for its financial year ended December 31, 2010;

 

(b)           in relation to the Parent Guarantor, the consolidated unaudited monthly management accounts for the period from January 1, 2011 to March 31, 2011;

 

(c)           in relation to each other member of the Group (other than the Issuer, Luxfer Australia Pty Limited, Hart Metals, Inc., MEL Chemicals Inc., Magnesium Elektron North America Inc., Niagara Metallurgical Products Limited and Reade Manufacturing Company), its audited financial statements for the financial year ended December 31, 2009; and

 

(d)           in relation to any other Obligor, its audited financial statements delivered to the holders of Notes as required by Section 9.31.

 

“Original Subsidiary Guarantor” is defined in the first paragraph of this Agreement.

 

Schedule B-20

 

“Parent Guarantor” is defined in the first paragraph of this Agreement.

 

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

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

 

“Pension Items” means any income or charge attributable to an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes Act 1993) other than the current service costs and any past service costs and curtailments and settlements attributable to the scheme.

 

“Pension Payment” means a payment of up to £5,000,000 (or its equivalent) as set out in the Base Case Model.

 

“Pensions Regulator” means the body corporate called the Pensions Regulator established under Part I of the Pensions Act 2004.

 

“Permitted Acquisition” means:

 

(a)           an acquisition pursuant to a Permitted Share Issue;

 

(b)           the incorporation of a company which on incorporation becomes a member of the Group, but only if that company is incorporated in England and Wales or the United States of America with limited liability;

 

(c)           an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member of the Group in circumstances constituting a Permitted Disposal;

 

(d)           an acquisition (not being an acquisition by the Parent Guarantor or the Issuer), of (1) all of the issued share capital of a limited liability company or (2) (if the acquisition is made by a limited liability company) a business or undertaking carried on as a going concern, but only if:

 

(i)            no Default or Event of Default is continuing on the closing date for the acquisition or would occur as a result of the acquisition;

 

(ii)           the acquired company, business or undertaking:

 

(A)         is engaged in a business the substantially the same as that carried on by the Group and

 

(B)          is incorporated or established, and carries on its principal business in a jurisdiction in which an existing member of the Group operates and not in any jurisdiction that is on a restricted list for a holder;

 

Schedule B-21

 

(iii)          Leverage (as shown in the latest Compliance Certificate) does not exceed 2.5:1;

 

(iv)          the Parent Guarantor has delivered to the holders of Notes not later than 5 Business Days prior to it (or the relevant member of the Group) legally committing to make such acquisition, a certificate signed by two directors of the Parent Guarantor:

 

(A)          giving notice to the holders of the proposed acquisition and

 

(B)          to which is attached forecasts (which have been prepared on the basis of recent historical information and reasonable assumptions, and which assume that the acquisition has occurred), demonstrating that the Parent Guarantor will remain in compliance with its obligations under Section 9.1 for a period of not less than 12 Months from the closing date for the acquisition and

 

(v)           the consideration (including associated costs and expenses) for the acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in the acquired company (or any such business) at the date of acquisition (when aggregated with the consideration (including associated costs and expenses) for any other Permitted Acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in any such acquired companies or businesses at the time of acquisition (the “Total Purchase Price”)) does not exceed in aggregate £15,000,000 (or its equivalent); or

 

(e)           an acquisition permitted by the Required Holders (such consent not to be unreasonably withheld or delayed) in writing.

 

“Permitted Disposal” means any sale, lease, license, transfer or other disposal which, except in the case of paragraph (b), is on arm’s length terms:

 

(a)           of trading stock or cash made by any member of the Group in the ordinary course of trading of the disposing entity;

 

(b)           of any asset by a member of the Group (“Disposing Company”) to another member of the Group (“Acquiring Company”), but:

 

(i)            if the Disposing Company is an Obligor, the Acquiring Company must also be an Obligor and

 

(ii)           if the Disposing Company is a Guarantor, the Acquiring Company must be a Guarantor guaranteeing at all times an amount no less than that guaranteed by the Disposing Company;

 

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

 

Schedule B-22

 

(d)           of assets to a Permitted Joint Venture;

 

(e)           of obsolete or redundant vehicles, plant and equipment for cash;

 

(f)            of Cash Equivalent Investments for cash or in immediate exchange for other Cash Equivalent Investments;

 

(g)           constituted by a license of intellectual property rights permitted by Section 9.24;

 

(h)           arising as a result of any Permitted Security;

 

(i)            of cash by way of a Permitted Loan;

 

(j)            of cash in order to complete a Permitted Acquisition; or

 

(k)           of assets for cash where the higher of the market value or the net consideration receivable in respect of such asset when aggregated with the higher of the market value or the net consideration receivable for any other sale, lease, license, transfer or other disposal of an asset not allowed under the preceding paragraphs) does not exceed £8,000,000 (or its equivalent) in aggregate and does not exceed £2,000,000 (or its equivalent) in any Financial Year.

 

“Permitted Distribution” means:

 

(a)           the payment of a dividend to any member of the Group by any of such Group member’s Subsidiaries;

 

(b)           the payment of a dividend by the Parent Guarantor provided:

 

(i)            no Default or Event of Default has occurred and is continuing or would result from such payment,

 

(ii)           Leverage (as shown in latest Compliance Certificate) does not exceed 2.5:1, and

 

(iii)          at the time the proposed dividend is made the forecasted Leverage for the next 12 Months (assuming payment of any proposed dividends during that period) does not exceed 2.5:1;

 

(c)           the redemption of up to £50,000 B preference shares at par value (plus any accrued dividend) issued by the Parent Guarantor to Brian Purves and Ian Mckinnon; and

 

(d)           the payment of any other dividend agreed between the Obligors and the Required Holders.

 

“Permitted Financial Indebtedness” means Financial Indebtedness:

 

(a)           arising under

 

Schedule B-23

 

(i) any of the Note Documents or

 

(ii) (x) the Bank Facilities Agreement (other than any Bilateral Facility), as amended from time to time in compliance with this Agreement and the Intercreditor Deed, (y) any Bilateral Facility made available to an Obligor by a Bank Lender in accordance with clause 8.1(a) (Bilateral Facilities) of the Bank Facilities Agreement (as in effect on the date hereof) or(z) a Permitted Refinancing Agreement, as amended from time to time in compliance with this Agreement and the Intercreditor Deed; provided that the aggregate amount committed or outstanding under this clause (ii) shall not at any time exceed the aggregate commitments under the Bank Facilities Agreement (including the Bilateral Facilities) on the date hereof plus the Senior Headroom;

 

(b)           arising under a Permitted Loan or a Permitted Guarantee or as permitted by Section 9.28;

 

(c)           arising under (i) a foreign exchange transaction for spot or forward delivery entered into in connection with protection against fluctuation in currency rates where that foreign exchange exposure arises in the ordinary course of trade or in respect of loans made under the Bank Facilities Agreement, but not a foreign exchange transaction for investment or speculative purposes and (ii) the Hedging Agreement;

 

(d)           under finance or capital leases of vehicles, plant equipment or computers, provided that the aggregate capital value of all such items so leased under outstanding leases by members of the Group does not exceed £10,000,000 (or its equivalent in other currencies) at any time;

 

(e)           of a company that becomes a member of the Group as a result of a Permitted Acquisition provided that the Financial Indebtedness is repaid in full within 45 days of that company becoming a member of the Group;

 

(f)            [Reserved];

 

(g)           not permitted by the preceding paragraphs so long as the outstanding amount does not exceed £400,000 (or its equivalent) in aggregate for the Group at any time;

 

(h)           performance bonds issued in the ordinary course of trading in respect of non-financial obligations;

 

(i)            existing as at the date of this Agreement pursuant to the ABL Facility and/or the Existing Note Documents so long as such Financial Indebtedness is irrevocably discharged no later than the date of the Closing;

 

(j)            permitted by the Required Holders in writing; and

 

(k)           such other Financial Indebtedness not permitted by the preceding paragraphs, provided that the outstanding principal amount of all Financial Indebtedness of the Group (including the Financial Indebtedness permitted pursuant to paragraphs (a)

 

Schedule B-24

 

to (j) above) does not exceed £145,000,000 (or its equivalent) in aggregate for the Group at any time.

 

“Permitted Guarantee” means:

 

(a)           the endorsement of negotiable instruments in the ordinary course of trade;

 

(b)           any guarantee to a property landlord of which a member of the Group is a tenant;

 

(c)           any performance or similar bond guaranteeing performance by a member of the Group under any contract entered into in the ordinary course of trade;

 

(d)           any guarantee or indemnity arising under the articles of association of the Parent Guarantor;

 

(e)           any indemnity given by a member of the Group for its liabilities in the ordinary course of trade;

 

(f)            a guarantee in respect of Specified Financial Indebtedness under paragraph (g) of the definition of “Permitted Financial Indebtedness”;

 

(g)           a guarantee of Financial Indebtedness as part of a Permitted Joint Venture;

 

(h)           a guarantee in respect of obligations of an Obligor or a guarantee by a non-Obligor in respect of the obligations of another member of the Group made in the ordinary course of business;

 

(i)            any guarantee given in respect of the netting or set-off arrangements permitted pursuant to paragraph (c) of the definition of Permitted Security;

 

(j)            any guarantee or indemnity given by a member of the Group in respect of any obligations of an employee or officer of a member of the Group, which obligations shall not exceed £100,000 (or its equivalent) in aggregate for all such obligations supported by such guarantees or indemnities pursuant to this paragraph (j) outstanding at any time; or

 

(k)           any guarantee (existing as at the date of this Agreement) given in respect of the Financial Indebtedness in relation to the ABL Facility or the Existing Note Documents so long as such guarantees are irrevocably released, removed or discharged no later than the date of the Closing.

 

so long as the aggregate outstanding amount of the obligations supported by such guarantees and indemnities does not exceed £100,000 (or its equivalent) at any time.

 

“Permitted Joint Venture” means any investment by any member of the Group:

 

Schedule B-25

 

(a)           where the joint venture interest is held through an entity incorporated or formed with limited liability and

 

(i)            the joint venture entity is incorporated or established, and carries on its principal business in a jurisdiction in which an existing member of the Group operates and not in any jurisdiction that is on a restricted list for any holder,

 

(ii)           as at the date of the joint venture investment by the relevant member of the Group:

 

(A)          Leverage (as shown in the latest Compliance Certificate) does not exceed 2.5:1 and

 

(B)          the Parent Guarantor has delivered to the holders of Notes not later than 5 Business Days prior to the relevant member of the Group legally committing to make such joint venture investment, a certificate signed by two directors of the Parent Guarantor:

 

(1)           giving notice to the holders of the proposed joint venture investment and

 

(2)           to which is attached forecasts (which have been prepared on the basis of recent historical information and reasonable assumptions, and which assume that the joint venture investment has occurred), demonstrating that the Parent Guarantor will remain in compliance with its obligations under Section 9.1 for a period of not less than 12 Months from the date of the joint venture investment,

 

(iii)          the joint venture investment is made on arm’s length terms,

 

(iv)          such entity carries on or owns the same, a similar, complementary or related business to that carried on by the Group, and

 

(v)           the aggregate (without double counting) of:

 

(A)          all outstanding amounts lent, advances, contributed to or for equity in, or otherwise invested in, all such entities by members of the Group and

 

(B)          the market value (at the date of transfer or contribution) of all assets transferred or contributed to all such entities by members of the Group to the extent exceeding the value of the consideration for such transfers or contributions and

 

Schedule B-26

 

(C)          all outstanding Financial Indebtedness incurred (whether by way of guarantee or otherwise) in relation to all such entities by members of the Group

 

shall not after the date of this Agreement, when taken together with any contingent liability of such Permitted Joint Venture, exceed £15,000,000 (or its equivalent); or

 

(b)           permitted by the Required Holders (such consent not to be unreasonably withheld or delayed) in writing.

 

“Permitted Loan” means:

 

(a)           any trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of its trading activities;

 

(b)           Financial Indebtedness which is referred to in the definition of, or otherwise constitutes, Specified Financial Indebtedness;

 

(c)           any loan to a Permitted Joint Venture;

 

(d)           any loan or advance made to employees of any member of the Group which loans and advances shall not exceed £100,000 (or its equivalent) in aggregate for all loans to employees outstanding at any time;

 

(e)           any loan, advance or other financial facility in an aggregate amount not to exceed £500,000 in any calendar year made available to the trustee of the ESOP, the trustee of any other employee share ownership plan or similar trust or to an employee whether for the purpose of acquiring ordinary, preference or deferred shares in the Parent Guarantor or any member of the Group, provided that such loan, advance or other financial facility may not exceed £5,000,000 (or its equivalent) at any one time outstanding;

 

(f)            a loan made by an Obligor to another Obligor or made by a member of the Group which is not an Obligor to another member of the Group;

 

(g)           any loan made by an Obligor to a member of the Group which is not an Obligor so long as:

 

(i)            the aggregate amount of the Financial Indebtedness under any such loans does not exceed £10,000,000 (or its equivalent) at any time, or

 

(ii)           such loan is funded by the issue of shares pursuant to paragraph (a) of the definition of “Permitted Share Issue”; or

 

(h)           any loan (other than a loan that would fall within one of the paragraphs set out above) so long as the aggregate amount of Financial Indebtedness under any such loans does not exceed £500,000 (or its equivalent) at any time.

 

Schedule B-27

 

“Permitted Refinancing Agreement” means any facility agreement, credit agreement or similar agreement which refinances or replaces all or any portion the Bank Facilities Agreement so long as (a) such agreement and any other Permitted Refinancing Documents do not contain, either initially or by amendment or other modification, any material terms, conditions, covenants or defaults other than those which (x) then exist in the Bank Facilities Agreement or those that would not be materially more restrictive on the Obligors than the terms, conditions, covenants and defaults in the then existing Bank Facilities Agreement or (y) could be included in the Bank Facilities Agreement by an amendment or other modification that would not be prohibited by the terms of the Intercreditor Deed, (b) the principal amount and commitments under such agreement shall not exceed the principal amount permitted pursuant to clause 3.3 of the Intercreditor Deed, and (c) each agent and lender a party to such agreement has acceded to the Intercreditor Deed (or entered into an intercreditor agreement on substantively the same terms as the Intercreditor Deed) pursuant to documentation reasonably acceptable to the Required Holders.

 

“Permitted Refinancing Documents” means a Permitted Refinancing Agreement and each other document executed in connection therewith that is a “financing document” (or such other similar term).

 

“Permitted Security” means:

 

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

 

(b)           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 of members of the Group but only so long as (i) such arrangement does not permit credit balances of Obligors to be netted or set off against debit balances of members of the Group which are not Obligors and (ii) such arrangement does not give rise to other Security over the assets of Obligors in support of liabilities of members of the Group which are not Obligors;

 

(c)           any payment or close out netting or set-off arrangement pursuant to any Treasury Transaction or foreign exchange transaction entered into by a member of the Group which constitutes Specified Financial Indebtedness, excluding any Security or Quasi-Security under a credit support arrangement;

 

(d)           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;

 

(e)           any Quasi-Security arising as a result of a disposal which is a Permitted Disposal;

 

(f)            any Security or Quasi-Security arising as a consequence of any finance or capital lease permitted pursuant to paragraph (i) of the definition of “Specified Financial Indebtedness”; or

 

Schedule B-28

 

(g)           any Security or Quasi-Security (existing as at the date of this Agreement) over the assets of the Group pursuant to the ABL Facility so long as such Security or Quasi Security is irrevocably released, removed or discharged no later than the date of the Closing or as otherwise required pursuant to Section 9.40(b).

 

“Permitted Share Issue” means an issue of:

 

(a)           ordinary shares by the Parent Guarantor, paid for in full in cash upon issue and which by their terms are not redeemable and where such issue does not lead to a Change of Control of the Parent Guarantor,

 

(b)           any shares issued in connection with the ESOP where such issue does not lead to a Change of Control, and

 

(c)           shares by a member of the Group (other than the Parent Guarantor) which is a Subsidiary to any Holding Company.

 

“Permitted Transaction” means:

 

(a)           any disposal required, Financial Indebtedness incurred, guarantee, indemnity or Security or Quasi-Security given, or other transaction arising, under the Note Documents;

 

(b)           the solvent liquidation or reorganization of any member of the Group which is not an Obligor so long as any payments or assets distributed as a result of such liquidation or reorganization are distributed to other members of the Group; or

 

(c)           transactions (other than (i) any sale, lease, license, transfer or other disposal and (ii) the granting or creation of Security or the incurring or permitting to subsist of Financial Indebtedness) conducted in the ordinary course of trading on arm’s length terms.

 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

 

“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Parent Guarantor or any ERISA Affiliate or with respect to which the Parent Guarantor or any ERISA Affiliate may have any liability.

 

“Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

 

“Principal Lending Facility” means (a) the Bank Facilities Agreement, (b) any Permitted Refinancing Agreement and (c) any other credit agreement, note purchase agreement, indenture or any other term loan or working capital facility of any Obligor or any Subsidiary of

 

Schedule B-29

 

an Obligor providing, in each case, for the incurrence of Financial Indebtedness, or commitments therefor, in a principal amount equal to or greater than £10,000,000 (or its equivalent in other currencies), in each case under clauses (a), (b) and (c) as amended, restated, supplemented or otherwise modified and together with increases, refinancings and replacements thereof.

 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

 

“provision of law” is a reference to a provision, of any treaty, legislation, regulation, decree, order or by-law and any secondary legislation enacted under a power given by that provision, as amended, applied or re-enacted or replaced (whether with or without modification) whether before or after the date of this Agreement.

 

“PTE” is defined in Section 6.2.

 

“Purchaser” is defined in the first paragraph of this Agreement.

 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

 

“Quarter Date” means the last day of a Financial Quarter.

 

“Quarterly Financial Statements” means the financial statements for the three-month periods ending on March 31, June 30, September 30 and December 31 in each Financial Year delivered pursuant to Section 7.1(a).

 

“Quasi-Security” is defined in Section 9.13.

 

“Ratable Portion” means, in respect of any holder of any Note and any Disposal Proceeds or Insurance Proceeds, an amount equal to the product of:

 

(a)           the amount of such Disposal Proceeds or Insurance Proceeds, multiplied by

 

(b)           a fraction, the numerator of which is the outstanding principal amount of such Note, and the denominator of which is the sum of (i) the aggregate outstanding principal amount of all the Notes plus (ii) the aggregate Commitments (as defined in the Bank Facilities Agreement as in effect on the date hereof) at such time under the Bank Facilities Agreement or the aggregate commitments at such time under a Permitted Refinancing Agreement, as applicable.

 

“Real Property” means:

 

(a)           any freehold, leasehold, commonhold or immovable property and

 

(b)           any buildings, fixtures, fittings, fixed plant or machinery from time to time situated on or forming part of that freehold, leasehold, commonhold or immovable property.

 

Schedule B-30

 

“Registration Duty” means any registration duty or similar amount payable pursuant to the laws of any jurisdiction in which an Obligor is organized in connection with the use in a judicial proceeding in such jurisdiction of this Agreement or any other Note Document or any other agreement or document related hereto or thereto or the transactions contemplated herein or therein.

 

“regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but if not having the force of law, then being a type with which Persons to which it applies customarily comply) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organization.

 

“Related Fund” means, with respect to any holder of any Note, any fund or entity that (a) invests in securities or bank loans, and (b) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

 

“Relevant Jurisdiction” means, in relation to an Obligor:

 

(a)           its jurisdiction of incorporation and

 

(b)           any jurisdiction where it conducts its business.

 

“Relevant Period” means:

 

(a)           in respect of Leverage and Interest Cover, each 12 Month period ending on the most recent Quarter Date ending on or after September 30, 2011 and

 

(b)           in respect of Debt Service Cover, prior to June 30, 2012, the period commencing on the date of the Closing and ending on the most recent Quarter Date ending on or after September 30, 2011, and after such period, each 12 Month period ending on the most recent Quarter Date.

 

“Required Holders” means, at any time, the holders of at least 51% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Obligors or any of their Affiliates).

 

“Responsible Officer” means any Senior Financial Officer and any other officer of the Issuer or a Guarantor, as applicable, with responsibility for the administration of the relevant portion of this Agreement.

 

“Response Date” is defined in Section  8.7.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

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

 

Schedule B-31

 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Issuer or a Guarantor, as applicable.

 

“Share Option Documents” means each deed of agreement granting options pursuant to parts A and B of the ESOP.

 

“Sterling” or “£” means lawful money of the United Kingdom.

 

“Subsidiary” means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006.  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Parent Guarantor.

 

“Subsidiary Guarantor” means each Original Subsidiary Guarantor and each Additional Subsidiary Guarantor, but shall exclude at such time any Subsidiary theretofore released from its obligations as a Subsidiary Guarantor pursuant to Section 9.31.

 

“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

 

“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).

 

“Taxing Jurisdiction” is defined in Section 12.

 

“Total Debt” means at any time the aggregate amount of all obligations of members of the Group for or in respect of Financial Indebtedness at that time but:

 

(a)           excluding any such obligations to any other member of the Group,

 

(b)           including in the case of Finance Leases only their capitalized value,

 

(c)           excluding unrealized gains and losses on Treasury Transactions (including currency exchange gains and losses), and

 

(d)           excluding any obligations in respect of performance bonds issued in the ordinary course of trading in respect of non-financial obligations to the extent such performance bonds are not called or enforced,

 

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

 

“Total Net Debt” means Total Debt less the aggregate amount of cash and Cash Equivalent Investments held by an Obligor at that time and so that no amount shall be included or excluded more than once.

 

“Transaction Costs” means all fees, costs and expenses incurred by the Obligors in connection with the Transaction Documents as set out in the Funds Flow Statement.

 

Schedule B-32

 

“Transaction Documents” means the Note Documents, the Bank Documents, the Articles and any other document designated as a Transaction Document by the Required Holders and the Issuer.

 

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

 

“UK Treaty Holder” means a holder of Notes which: (a) is resident (as defined in the appropriate double taxation agreement) in a country with which the United Kingdom has a double taxation agreement giving residents of that country a full exemption from United Kingdom taxation on interest; (b) is entitled to the benefit of the exemption in such a double taxation agreement (subject to the completion of any necessary procedural formalities); and (c) does not carry on a business in the United Kingdom through a permanent establishment with which the payment is effectively connected.

 

“UK Treaty Passport” means a passport under the UK Treaty Passport Scheme.

 

“UK Treaty Passport Scheme” means the Double Taxation Treaty Passport Scheme for overseas corporate lenders introduced by HMRC on September 1, 2010.

 

“Unconditional Guarantee” is defined in Section 13.1.

 

“U.S. Bankruptcy Law” means the United States Bankruptcy Code of 1978 or any other United States federal or state bankruptcy, insolvency or similar law.

 

“U.S. Dollars” or “US$” means lawful money of the United States of America.

 

“U.S. Guarantor” means a Guarantor incorporated or formed under the laws of, or of any state (including the District of Columbia) of, the United States of America.

 

“U.S. Obligor” means an Obligor incorporated or formed under the laws of, or of any state (including the District of Columbia) of, the United States of America.

 

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“Working Capital” means on any date Current Assets less Current Liabilities.

 

Schedule B-33

 

Schedule C

 

ORIGINAL SUBSIDIARY GUARANTORS

 

	
Name
    	
 
    	
Jurisdiction of Organization
    
	
 
    	
 
    	
 
    
	
Luxfer   Group Limited (Registered No. 3944037)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Luxfer   Group 2000 Limited (Registered No. 4027006)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
MEL   Chemicals Inc.
    	
 
    	
New   Jersey
    
	
 
    	
 
    	
 
    
	
Magnesium   Elektron North America Inc.
    	
 
    	
Delaware
    
	
 
    	
 
    	
 
    
	
Luxfer   Gas Cylinders Limited (Registered No. 3376625)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Luxfer   Group Services Limited (Registered No. 3981395)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Magnesium   Elektron Limited (Registered No. 3141950)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Luxfer   Overseas Holdings Limited (Registered No. 3081726)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Luxfer   Gas Cylinders China Holdings Limited (Registered No. 5165622)
    	
 
    	
England   and Wales
    
	
 
    	
 
    	
 
    
	
Luxfer   Inc.
    	
 
    	
Delaware
    
	
 
    	
 
    	
 
    
	
Hart   Metals, Inc.
    	
 
    	
Delaware
    
	
 
    	
 
    	
 
    
	
Reade   Manufacturing Company
    	
 
    	
Delaware
    

 

Schedule C-1

 

Exhibit 1(a)

 

[Form of Note]

 

BA Holdings, Inc.

 

Senior Note Due June 15, 2018

 

	
No. R-[          ]
    	
[Date]
    
	
US$[              ]
    	
PPN: [                    ]
    

 

FOR VALUE RECEIVED, the undersigned, BA HOLDINGS, INC. (herein called the “Issuer”), a corporation organized and existing under the laws of Delaware, hereby promises to pay to [                        ], or registered assigns, the principal sum of [                                          ] U.S. DOLLARS (or so much thereof as shall not have been prepaid) on June 15, 2018, with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at the rate of 6.19% per annum from the date hereof, payable quarterly, on the 15th day of September, December, March and June in each year (each such date an “Interest Payment Date”), commencing with the September, December, March or June next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest and, during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of (i) 8.19% and (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable quarterly as aforesaid (or, at the option of the registered holder hereof, on demand).

 

In addition to the interest payable pursuant to the above paragraph, in the event that Leverage on the last day of any Relevant Period (a “Testing Date”) is greater than 2.50 to 1.0, there shall accrue on the unpaid principal balance of this Note additional interest (“Additional Interest”) at the rate of 0.75% per annum for each period (each such period an “Additional Interest Period”) commencing on the Interest Payment Date immediately prior to such Testing Date through the Interest Payment Date immediately after the first subsequent Testing Date on which Leverage equals or is less than 2.50 to 1.0.  The Issuer shall pay, on each Interest Payment Date during each Additional Interest Period, all accrued and unpaid Additional Interest as of such Interest Payment Date.

 

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of JPMorgan Chase Bank, N.A. in New York, New York or at such other place as the Issuer shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

 

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of May 13, 2011 (as from time to time amended, the “Note Purchase Agreement”), among the Issuer, Luxfer Holdings PLC, the respective Original

 

Exhibit 1(a)-1

 

Subsidiary Guarantors named therein and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 21 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

 

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, accompanied by a written instrument of transfer duly executed by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Issuer may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Issuer will not be affected by any notice to the contrary.

 

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.

 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

 

This Note shall be construed and enforced in accordance with, and the rights of the Issuer and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

	
 
    	
BA   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit 1(a)-2

 

Exhibit 1(b)(i)

 

Form of English Guarantee Agreement

 

GUARANTEE AGREEMENT

 

This Guarantee Agreement, dated as of [                              , 20    ] (this “Guarantee Agreement”), is made by [                              ], a [                              ] (the “Guarantor”) in favor of the Purchasers (as defined below) and the other holders from time to time of the Notes (as defined below).  The Purchasers and such other holders are herein collectively called the “holders” and individually a “holder.”

 

Preliminary Statements:

 

I.             BA Holdings, Inc., a Delaware corporation (the “Issuer”), [Luxfer Holdings PLC (Registered No. 3690830), a public limited company organized under the laws of England and Wales / the Guarantor], [the Guarantor] and each of the [other] parties listed in Schedule C attached thereto [is entering][has entered] into a Note Purchase Agreement dated as of May 13, 2011 (as amended, modified, supplemented or restated from time to time, the “Note Agreement”) with the Persons listed in Schedule A attached thereto (collectively, the “Purchasers”) [simultaneously with the delivery of this Guarantee Agreement].  Capitalized terms used herein have the meanings specified in the Note Agreement unless otherwise defined herein.

 

II.            Pursuant to the Note Agreement, the Issuer [proposes to issue and sell][has issued and sold] US$65,000,000 aggregate principal amount of Senior Notes due June 15, 2018 (collectively, the “Initial Notes”).  The Initial Notes and any other Notes that may from time to time be issued pursuant to the Note Agreement (including any notes issued in substitution for any of the Notes) are herein collectively called the “Notes” and individually a “Note”.

 

III.          [It is a condition to the agreement of the Purchasers to purchase the Notes that this Guarantee Agreement shall have been executed and delivered by the Guarantor and shall be in full force and effect.][Pursuant to the Note Agreement, the Obligors are required to cause the Guarantor to deliver this Guarantee Agreement to the holders and to enter into a certain Joinder Agreement, dated the date hereof, pursuant to which the Guarantor shall become a party to the Note Agreement (the “Joinder Agreement”).]

 

IV.          The Guarantor and the Issuer are operated as part of one consolidated business entity and are directly dependent upon each other for and in connection with their respective business activities and their respective financial resources.  The Guarantor will receive[, and has received,] direct and indirect economic and financial benefits from the indebtedness incurred under the Note Agreement and the Notes by the Issuer, and the incurrence of such indebtedness is or was in the best interests of the Guarantor.  By agreeing to enter into this Guarantee 

 

Exhibit 1(b)(i)-1

 

Agreement and the Joinder Agreement, the Guarantor will gain substantial financial and other benefits, both direct and indirect.

 

NOW THEREFORE, in [order to induce][compliance with the Note Agreement], and in consideration of, the execution and delivery of the Note Agreement and the purchase of the Notes by each of the Purchasers, the Guarantor hereby covenants and agrees with, and represents and warrants to each of the holders as follows:

 

Section 1.              GUARANTEE.

 

The Guarantor hereby irrevocably and unconditionally, and jointly and severally with the other Guarantors, guarantees to each holder, the due and punctual payment in full of (a) the principal of, Make-Whole Amount, if any, and interest on (including, without limitation, interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), and any other amounts due under, the Notes when and as the same shall become due and payable (whether at stated maturity or by required or optional prepayment or by acceleration or otherwise) and (b) any other sums which may become owing by the Issuer to the holders under the terms and provisions of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein (all such obligations described in clauses (a) and (b) above are herein called the “Guaranteed Obligations”).  The guarantee in the preceding sentence is an absolute, present and continuing guarantee of payment and not of collectibility and is in no way conditional or contingent upon any attempt to collect from the Issuer or any other Obligor or guarantor of the Notes or upon any other action, occurrence or circumstance whatsoever.  In the event that the Issuer shall fail so to pay any of such Guaranteed Obligations, the Guarantor agrees to pay the same when due to the holders entitled thereto, without demand, presentment, protest or notice of any kind, in lawful money of the United States of America, pursuant to the requirements for payment specified in the Notes and the Note Agreement.  Each default in payment of any of the Guaranteed Obligations shall give rise to a separate cause of action hereunder and separate suits may be brought hereunder as each cause of action arises.  The Guarantor agrees that the Notes issued in connection with the Note Agreement may (but need not) make reference to this Guarantee Agreement.

 

The Guarantor agrees to pay and to indemnify and save each holder harmless from and against any damage, loss, cost or expense (including attorneys’ fees) which such holder may incur or be subject to as a consequence, direct or indirect, of (x) any breach by the Guarantor or by the Issuer of any warranty, covenant, term or condition in, or the occurrence of any default under, this Guarantee Agreement, the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein, together with all expenses resulting from the compromise or defense of any claims or liabilities arising as a result of any such breach or default, (y) any legal action commenced to challenge the validity or enforceability of this Guarantee Agreement, the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein and (z) enforcing or defending (or determining whether or how to enforce or defend) the provisions of this Guarantee Agreement, provided, that the Guarantor

 

Exhibit 1(b)(i)-2

 

shall not be liable for any damage, loss, cost or expense arising out of the gross negligence or willful misconduct of any holder.

 

The Guarantor further irrevocably and unconditionally indemnifies each holder immediately on demand against any cost, loss or liability suffered by such holder if any payment obligation guaranteed by it is or becomes unenforceable, invalid or illegal; the amount of the loss or liability under this indemnity will be equal to the amount such holder would otherwise have been entitled to recover.

 

The Guarantor hereby acknowledges and agrees that the Guarantor’s liability hereunder is joint and several with any other Person(s) who may guarantee the Guaranteed Obligations, including [the Parent Guarantor] and any [other] Subsidiary Guarantor.

 

Anything herein or in the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein to the contrary notwithstanding, the maximum liability of the Guarantor hereunder and under the Notes and the Note Agreement shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable laws relating to the insolvency of debtors.

 

The Guarantor agrees that the obligations under and in respect of the Notes, the Note Agreement and the other Note Documents may at any time and from time to time exceed the amount of the liability of the Guarantor hereunder without impairing this Guarantee Agreement or affecting the rights and remedies of any holder hereunder.

 

Section 2.              OBLIGATIONS ABSOLUTE.

 

The obligations of the Guarantor hereunder shall be primary, absolute, irrevocable and unconditional, irrespective of the validity or enforceability of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein, shall not be subject to any counterclaim, setoff, deduction or defense based upon any claim the Guarantor may have against the Issuer or any holder or otherwise, and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected by, any circumstance or condition whatsoever (whether or not the Guarantor shall have any knowledge or notice thereof), including, without limitation: (a) any amendment to, modification of, supplement to or restatement of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein (it being agreed that the obligations of the Guarantor hereunder shall apply to the Notes, the Note Agreement, the other Note Documents and any such other instrument as so amended, modified, supplemented or restated) or any assignment or transfer of any thereof or of any interest therein, or any furnishing, acceptance or release of any security for the Notes or the addition, substitution or release of any other Guarantor or any other entity or other Person primarily or secondarily liable in respect of the Guaranteed Obligations; (b) any waiver, consent, extension, indulgence or other action or inaction under or in respect of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein; (c) any bankruptcy, insolvency, arrangement, reorganization, readjustment, composition, liquidation or

 

Exhibit 1(b)(i)-3

 

similar proceeding with respect to the Issuer or its property; (d) any merger, amalgamation or consolidation of the Guarantor or of the Issuer into or with any other Person or any sale, lease or transfer of any or all of the assets of the Guarantor or of the Issuer to any Person; (e) any failure on the part of the Issuer for any reason to comply with or perform any of the terms of any other agreement with the Guarantor; (f) any failure on the part of any holder to obtain, maintain, register or otherwise perfect any security; or (g) any other event or circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor (whether or not similar to the foregoing), and in any event however material or prejudicial it may be to the Guarantor or to any subrogation, contribution or reimbursement rights the Guarantor may otherwise have.  The Guarantor covenants that its obligations hereunder will not be discharged except by indefeasible payment in full in cash of all of the Guaranteed Obligations and all other obligations hereunder.

 

Section 3.              WAIVER.

 

The Guarantor unconditionally waives to the fullest extent permitted by law, (a) notice of acceptance hereof, of any action taken or omitted in reliance hereon and of any default by the Issuer in the payment of any amounts due under the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein, and of any of the matters referred to in Section 2 hereof, (b) all notices which may be required by statute, rule of law or otherwise to preserve any of the rights of any holder against the Guarantor, including, without limitation, presentment to or demand for payment from the Issuer or the Guarantor with respect to any Note, notice to the Issuer or to the Guarantor of default or protest for nonpayment or dishonor and the filing of claims with a court in the event of the bankruptcy of the Issuer, (c) any right to require any holder to enforce, assert or exercise any right, power or remedy including, without limitation, any right, power or remedy conferred in the Note Agreement, the Notes or any other Note Document, (d) any requirement for diligence on the part of any holder and (e) any other act or omission or thing or delay in doing any other act or thing which might in any manner or to any extent vary the risk of the Guarantor or otherwise operate as a discharge of the Guarantor or in any manner lessen the obligations of the Guarantor hereunder.

 

Section 4.              OBLIGATIONS UNIMPAIRED.

 

The Guarantor authorizes the holders, without notice or demand to the Guarantor and without affecting its obligations hereunder, from time to time, in accordance with the provisions of the relevant Note Document or other instrument:  (a) to renew, compromise, extend, accelerate or otherwise change the time for payment of, all or any part of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein; (b) to change any of the representations, covenants, events of default or any other terms or conditions of or pertaining to the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein, including, without limitation, decreases or increases in amounts of principal, rates of interest, the Make-Whole Amount or any other obligation; (c) to take and hold security for the payment of the Notes, the Note Agreement, any other Note Document or any other instrument referred to therein, for the performance of this Guarantee Agreement or otherwise for the Guaranteed Obligations and to exchange, enforce, waive, subordinate and release any such

 

Exhibit 1(b)(i)-4

 

security; (d) to apply any such security and to direct the order or manner of sale thereof as the holders in their sole discretion may determine; (e) to obtain additional or substitute endorsers or guarantors or release any other Guarantor or any other Person or entity primarily or secondarily liable in respect of the Guaranteed Obligations; (f) to exercise or refrain from exercising any rights against the Issuer and others, including [the Parent Guarantor and] any [other] Subsidiary Guarantor; and (g) to apply any sums, by whomsoever paid or however realized, to the payment of the Guaranteed Obligations and all other obligations owed hereunder.  The holders shall have no obligation to proceed against [the Parent Guarantor or] any [other] Subsidiary Guarantor or any additional or substitute endorsers or guarantors or to pursue or exhaust any security provided by the Issuer, the Guarantor, [the Parent Guarantor or] any [other] Subsidiary Guarantor or any other Person or to pursue any other remedy available to the holders.

 

If an event permitting the acceleration of the maturity of the principal amount of any Notes shall exist and such acceleration shall at such time be prevented or the right of any holder to receive any payment on account of the Guaranteed Obligations shall at such time be delayed or otherwise affected by reason of the pendency against the Issuer, the Guarantor or any other guarantors of a case or proceeding under a bankruptcy or insolvency law, the Guarantor agrees that, for purposes of this Guarantee Agreement and its obligations hereunder, the maturity of such principal amount shall be deemed to have been accelerated with the same effect as if the holder thereof had accelerated the same in accordance with the terms of the Note Agreement, and the Guarantor shall forthwith pay such accelerated Guaranteed Obligations.

 

Section 5.              SUBROGATION AND SUBORDINATION.

 

(a)           The Guarantor will not be entitled to and will not exercise any rights which it may have acquired by way of subrogation under this Guarantee Agreement, by any payment made hereunder or otherwise, or accept any payment on account of such subrogation rights, nor will the Guarantor seek or be entitled to seek any reimbursement, contribution or indemnity from the Issuer, [the Parent Guarantor,] any [other] Subsidiary Guarantor or any other Person, nor seek or be entitled to seek any rights or recourse to any security for the Notes or this Guarantee Agreement, in each case unless and until all of the Guaranteed Obligations shall have been indefeasibly paid in full in cash.

 

(b)           The Guarantor hereby subordinates the payment of all Financial Indebtedness and other obligations of the Issuer, [the Parent Guarantor,] any [other] Subsidiary Guarantor or any other guarantor of the Guaranteed Obligations owing to the Guarantor, whether now existing or hereafter arising, including, without limitation, all rights and claims described in clause (a) of this Section 5, to the indefeasible payment in full in cash of all of the Guaranteed Obligations.  If the Required Holders so request, any such Financial Indebtedness or other obligations shall be enforced and performance received by the Guarantor as trustee for the holders and the proceeds thereof shall be paid over to the holders promptly, in the form received (together with any necessary endorsements) to be applied to the Guaranteed Obligations, whether matured or unmatured, as may be directed by the Required Holders, but without reducing or affecting in any manner the liability of the Guarantor under this Guarantee Agreement.

 

Exhibit 1(b)(i)-5

 

(c)           If any amount or other payment is made to or accepted by the Guarantor in violation of any of the preceding clauses (a) and (b) of this Section 5, such amount shall be deemed to have been paid to the Guarantor for the benefit of, and held in trust for the benefit of, the holders and shall be paid over to the holders promptly, in the form received (together with any necessary endorsements) to be applied to the Guaranteed Obligations, whether matured or unmatured, as may be directed by the Required Holders, but without reducing or affecting in any manner the liability of the Guarantor under this Guarantee Agreement.

 

(d)           The Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Note Agreement and that its agreements set forth in this Guarantee Agreement (including this Section 5) are knowingly made in contemplation of such benefits.

 

Section 6.              REINSTATEMENT OF GUARANTEE.

 

This Guarantee Agreement shall continue to be effective, or be reinstated, as the case may be, if and to the extent at any time payment, in whole or in part, of any of the sums due to any holder on account of the Guaranteed Obligations is rescinded or must otherwise be restored or returned by a holder upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Issuer or any other guarantors, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to the Issuer or any other guarantors or any part of its or their property, or otherwise, all as though such payments had not been made.

 

Section 7.              REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR.

 

The Guarantor now has and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the Issuer.  No holder shall have any duty or responsibility to provide the Guarantor with any credit or other information concerning the affairs, financial condition or business of the Issuer which may come into possession of the holders.  The Guarantor is executing and delivering this Guarantee Agreement and each other Note Document to which it is a party without reliance upon any representation by the holders including, without limitation, with respect to (a) the due execution, validity, effectiveness or enforceability of any instrument, document or agreement evidencing or relating to any of the Guaranteed Obligations or any loan or other financial accommodation made or granted to the Issuer, (b) the validity, genuineness, enforceability, existence, value or sufficiency of any property securing any of the Guaranteed Obligations or the creation, perfection or priority of any lien or security interest in such property or (c) the existence, number, financial condition or creditworthiness of other guarantors or sureties, if any, with respect to any of the Guaranteed Obligations.

 

Exhibit 1(b)(i)-6

 

Section 8.              TERM OF GUARANTEE AGREEMENT.

 

This Guarantee Agreement and all guarantees, covenants and agreements of the Guarantor contained herein shall continue in full force and effect and shall not be discharged until such time as all of the Guaranteed Obligations and all other obligations hereunder shall be indefeasibly paid in full in cash and shall be subject to reinstatement pursuant to Section 6.

 

Section 9.                                          SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

 

All representations and warranties contained herein shall survive the execution and delivery of this Guarantee Agreement and may be relied upon by any subsequent holder, regardless of any investigation made at any time by or on behalf of any Purchaser or any other holder.  All statements contained in any certificate or other instrument delivered by or on behalf of the Guarantor pursuant to this Guarantee Agreement shall be deemed representations and warranties of the Guarantor under this Guarantee Agreement.  Subject to the preceding sentence, this Guarantee Agreement embodies the entire agreement and understanding between each holder and the Guarantor and supersedes all prior agreements and understandings relating to the subject matter hereof.

 

Section 10.                                   AMENDMENT AND WAIVER.

 

10.1        Requirements.  This Guarantee Agreement may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively), with (and only with) the written consent of the Guarantor and the Required Holders, except that no amendment or waiver (a) of any of the provisions of Section 1, 2, 3, 4, 5, 6, 8, 10 or 12.7 hereof, or any defined term (as it is used therein), or (b) which results in the limitation of the liability of the Guarantor hereunder will be effective as to any holder unless consented to by such holder in writing.

 

10.2        Solicitation of Holders of Notes.

 

(a)           Solicitation.  The Guarantor will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof.  The Guarantor will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 10.2 to each holder promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

 

(b)           Payment.  The Guarantor will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder as

 

Exhibit 1(b)(i)-7

 

consideration for or as an inducement to the entering into by any holder of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder even if such holder did not consent to such waiver or amendment.

 

(c)           Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 10.2 by the holder of any Note that has transferred or has agreed to transfer such Note to an Obligor (including the Guarantor) or any Affiliate of an Obligor and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such transferring holder.

 

10.3        Binding Effect.  Any amendment or waiver consented to as provided in this Section 10 applies equally to all holders and is binding upon them and upon each future holder and upon the Guarantor without regard to whether any Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant or agreement not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Guarantor and the holder nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder.  As used herein, the term “this Guarantee Agreement” and references thereto shall mean this Guarantee Agreement as it may be amended, modified, supplemented or restated from time to time.

 

10.4        Notes Held by Issuer, etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Guarantee Agreement, or have directed the taking of any action provided herein to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by any Obligor (including the Guarantor) or any Affiliate of an Obligor shall be deemed not to be outstanding.

 

Section 11.            NOTICES; ENGLISH LANGUAGE.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:

 

(a)           if to the Guarantor, to [                                                                    ], or such other address as the Guarantor shall have specified to the holders in writing, or

 

Exhibit 1(b)(i)-8

 

(b)           if to any holder, to such holder at the addresses specified for such communications set forth in Schedule A to the Note Agreement, or such other address as such holder shall have specified to the Guarantor in writing.

 

Each document, instrument, financial statement, report, notice or other communication delivered in connection with this Guarantee Agreement shall be in English or accompanied by an English translation thereof.

 

This Guarantee Agreement has been prepared and signed in English and the Guarantor agrees that the English version hereof (to the maximum extent permitted by applicable law) shall be the only version valid for the purpose of the interpretation and construction hereof and thereof notwithstanding the preparation of any translation into another language hereof or thereof, whether official or otherwise or whether prepared in relation to any proceedings which may be brought in [                  ] or any other jurisdiction in respect hereof or thereof.

 

Section 12.            MISCELLANEOUS.

 

12.1        Successors and Assigns.  All covenants and other agreements contained in this Guarantee Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns whether so expressed or not.

 

12.2        Severability.  Any provision of this Guarantee Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law), not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.3        Construction.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such express contrary provision) be deemed to excuse compliance with any other covenant.  Whether any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

The section and subsection headings in this Guarantee Agreement are for convenience of reference only and shall neither be deemed to be a part of this Guarantee Agreement nor modify, define, expand or limit any of the terms or provisions hereof.  All references herein to numbered sections, unless otherwise indicated, are to sections of this Guarantee Agreement.  Words and definitions in the singular shall be read and construed as though in the plural and vice versa, and words in the masculine, neuter or feminine gender shall be read and construed as though in either of the other genders where the context so requires.

 

Exhibit 1(b)(i)-9

 

12.4        Further Assurances.  The Guarantor agrees to execute and deliver all such instruments and take all such action as the Required Holders may from time to time reasonably request in order to effectuate fully the purposes of this Guarantee Agreement.

 

12.5        Governing Law.  This Guarantee Agreement and any non-contractual obligations arising out of or in connection with it shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of England and Wales.

 

12.6        Jurisdiction.

 

(a)           The English courts have exclusive jurisdiction to settle any dispute in connection with this Guarantee Agreement, including a dispute relating to any non-contractual obligation arising out of or in connection with this Guarantee Agreement.

 

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

 

(c)           This Section 12.6 is for the benefit of the holders of Notes only.  To the extent allowed by law, the Required Holders may take:

 

(1)           proceedings in any other court; and

 

(2)           concurrent proceedings in any number of jurisdictions.

 

12.7        Obligation to Make Payment in U.S. Dollars.  Any payment on account of an amount that is payable hereunder in U.S. Dollars which is made to or for the account of any holder in any other currency, whether as a result of any judgment or order or the enforcement thereof or the realization of any security or the liquidation of the Guarantor, shall constitute a discharge of the obligation of the Guarantor under this Guarantee Agreement only to the extent of the amount of U.S. Dollars which such holder could purchase in the foreign exchange markets in London, England, with the amount of such other currency in accordance with normal banking procedures at the rate of exchange prevailing on the London Banking Day following receipt of the payment first referred to above.  If the amount of U.S. Dollars that could be so purchased is less than the amount of U.S. Dollars originally due to such holder, the Guarantor agrees to the fullest extent permitted by law, to indemnify and save harmless such holder from and against all loss or damage arising out of or as a result of such deficiency.  This indemnity shall, to the fullest extent permitted by law, constitute an obligation separate and independent from the other obligations contained in this Guarantee Agreement, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by such holder from time to time and shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or under any judgment or order.  As used herein the term “London Banking Day” shall mean any day other than Saturday or Sunday or a

 

Exhibit 1(b)(i)-10

 

day on which commercial banks are required or authorized by law to be closed in London, England.

 

12.8        Reproduction of Documents; Execution.  This Guarantee Agreement may be reproduced by any holder by any photographic, photostatic, electronic, digital, or other similar process and such holder may destroy any original document so reproduced.  The Guarantor agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such holder in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 12.8 shall not prohibit the Guarantor or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.  A facsimile or electronic transmission of the signature page of the Guarantor shall be as effective as delivery of a manually executed counterpart hereof and shall be admissible into evidence for all purposes.

 

 

[Remainder of page intentionally left blank; next page is signature page]

 

Exhibit 1(b)(i)-11

 

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee Agreement to be duly executed and delivered as of the date and year first above written.

 

	
 
    	
[NAME   OF GUARANTOR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Exhibit 1(b)(i)-12

 

Exhibit 1(b)(ii)

 

Form of Joinder Agreement

 

JOINDER AGREEMENT

 

This Joinder Agreement (this “Joinder Agreement”), dated as of [                  ], is executed by [                   ], a [                  ] (the “Guarantor”), in favor of each of the holders from time to time of the Notes (as defined below) (collectively, the “Noteholders”) issued by BA Holdings, Inc. (the “Issuer”) pursuant to the Note Agreement (as defined below).

 

RECITALS

 

A.            The Issuer, Luxfer Holdings PLC (the “Parent Guarantor”), and each of the parties listed in Schedule C thereto (the “Original Subsidiary Guarantors” and together with the Issuer and the Parent Guarantor, collectively, the “Obligors”), on the one hand, and each of the purchasers listed in Schedule A thereto (the “Purchasers”), on the other hand, entered into a Note Purchase Agreement, dated as of May 13, 2011 (as it may be amended, restated or otherwise modified from time to time, the “Note Agreement”), pursuant to which the Issuer issued Senior Notes due June 15, 2018 in the aggregate principal amount of US$65,000,000 (the “Notes”) to the Purchasers.

 

B.            The Guarantor and the Issuer are operated as part of one consolidated business entity and are directly dependent upon each other for and in connection with their respective business activities and their respective financial resources.  The Guarantor will receive[, and has received,] direct and indirect economic and financial benefits from the indebtedness incurred under the Note Agreement and the Notes by the Issuer, and the incurrence of such indebtedness is or was in the best interests of the Guarantor.  By agreeing to enter into this Joinder Agreement [and the Guarantee Agreement (as defined below)](1), the Guarantor will gain substantial financial and other benefits, both direct and indirect.

 

C.            The Obligors have covenanted in the Note Agreement that joinder agreements shall be duly executed by certain Subsidiaries of the Parent Guarantor.  Annex 1 hereto sets forth a list of the joinder agreements with respect to the Notes executed prior to the date of this Joinder Agreement.

 

[D.         Concurrently herewith, the Guarantor is entering into a certain [Guarantee Agreement], dated the date hereof, pursuant to which the Guarantor is guaranteeing the obligations of the Issuer under the Notes, the Note Agreement and the other Note Documents (the “Guarantee Agreement”).](2)

 

(1)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(2)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

Exhibit 1(b)(ii)-1

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Guarantor hereby agrees with the Noteholders as follows:

 

1.             Unless otherwise defined herein, all capitalized terms used herein and defined in the Note Agreement shall have the respective meanings given to those terms in the Note Agreement.

 

2.             The Guarantor has received a copy of, and has reviewed, the Note Agreement as in existence on the date of this Joinder Agreement and is executing and delivering this Joinder Agreement to the Noteholders pursuant to Section 9.31 of the Note Agreement.

 

3.             In accordance with the terms of Section 9.31 of the Note Agreement, the Guarantor, by the execution and delivery of this Joinder Agreement, does hereby agree to become, and does hereby become, (a) a party to the Note Agreement as a “Subsidiary Guarantor” and (b) bound by the terms and conditions, covenants and other agreements in the Note Agreement to be performed or observed by, or otherwise applicable to, Subsidiary Guarantors [except for the provisions of Section 13 of the Note Agreement](3) [including, without limitation, becoming jointly and severally liable with the other Guarantors for the Guaranteed Obligations as set forth in Section 13 of the Note Agreement](4).  The Note Agreement is hereby, without any further action, amended to add the Guarantor as a “Subsidiary Guarantor” and signatory to the Note Agreement.

 

4.             The Guarantor hereby makes, as of the date hereof and only as to itself in its capacity as a Subsidiary Guarantor under the Note Agreement and/or as a Subsidiary, each of the representations and warranties set forth in Section 5 of the Note Agreement that are applicable to a Subsidiary Guarantor and a Subsidiary (except that any representation and warranty made as of or with respect to a specific earlier date is made only as of such date)[, and the representations and warranties set forth in Section 13.8 of the Note Agreement](5).

 

5.             The Guarantor hereby delivers to each of the Noteholders, contemporaneously with the delivery of this Joinder Agreement, each of the documents set forth on Annex 2 hereto.

 

6.             Except as expressly supplemented hereby, the Note Agreement shall remain in full force and effect.

 

7.             All communications and notices hereunder shall be in writing and given as provided in Section 19 of the Note Agreement.  All communications and notices hereunder to the Guarantor shall be given to it at the address set forth under its signature hereto.

 

8.             Any provision of this Joinder Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition

 

(3)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(4)  To be included if the Guarantor is organized in the U.S.

 

(5)  To be included if the Guarantor is organized in the U.S.

 

Exhibit 1(b)(ii)-2

 

or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

9.             This Joinder Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice of law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

10.          This Joinder Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Guarantor.

 

11.          This Joinder Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument.  Delivery of an executed signature page hereto by facsimile or e-mail transmission shall be effective as delivery of a manually signed counterpart of this Joinder Agreement.

 

 

[Remainder of page intentionally left blank; next page is signature page]

 

Exhibit 1(b)(ii)-3

 

IN WITNESS WHEREOF, the Guarantor has caused this Joinder Agreement to be executed on its behalf by its duly authorized officer or agent as of the date first above written.

 

 

Guarantor:

 

[                                    ]

 

 

	
By
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

Address for notices and other communications:

 

 

Exhibit 1(b)(ii)-4

 

Annex 1

 

Joinder Agreements

Executed Prior to the Date of this Joinder Agreement

 

Existing Joinder Agreements:

 

[To be Completed]

 

Exhibit 1(b)(ii)-5

 

Annex 2

 

Additional Documents

 

(a)           A certified copy of the resolution of the board of directors or other governing body of the Guarantor approving the execution and delivery of this Joinder Agreement [and the Guarantee Agreement](6), the joinder of the Guarantor to the Note Agreement and the execution and delivery of any security document referred to in clause (d) below, and the performance of its obligations thereunder and authorizing the person or persons signing this Joinder Agreement [[and /,] the Guarantee Agreement](7) and any other documents to be delivered pursuant hereto to sign the same on behalf of the Guarantor.

 

(b)           Authenticated signatures of the person or persons specified in the resolutions referred to in clause (a) above.

 

(c)           The articles of incorporation or other constitutive documents of the Guarantor, certified as being in effect by the Guarantor’s Secretary or an Assistant Secretary or a director or other appropriate person (including, if relevant, copies of all amending resolutions or other amendments).

 

(d)           Such security documents as the Required Holders may require, each in form and substance satisfactory to the Required Holders.

 

(e)           An opinion or opinions of counsel in form and substance satisfactory to the Required Holders, confirming that (i) [this Joinder Agreement[, the Guarantee Agreement](8) and any security document referred to in clause (d) above has been duly authorized, executed and delivered by the Guarantor, (ii) this Joinder Agreement[, the Guarantee Agreement](9) and any such security document constitutes the legal, valid and binding contract and agreement of the Guarantor, enforceable in accordance with its terms (except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles), (iii) the execution, delivery and performance by the Guarantor of this Joinder Agreement[, the Guarantee Agreement](10) and any such security document do not (A) violate any law, rule or regulation applicable to the Guarantor, or (B) (1) conflict with or result in any breach of any of the provisions of or constitute a default under or result in the creation or imposition of any Security not permitted by the Note Agreement or (2) conflict with or result in any breach of any of the provisions of or constitute a default under (I) the provisions of the constitutive documents of the Guarantor, or (II) any agreement or other instrument to which the Guarantor is a party or by which it may be bound, and (iv) any Security granted under any such security document constitutes a valid, attached and perfected Security in favor of the Noteholders.

 

(6)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(7)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(8)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(9)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

(10)  To be included if the Guarantor is organized in a jurisdiction outside the U.S.

 

Exhibit 1(b)(ii)-6

 

(f)            Such other documents and evidence with respect to the Guarantor as the Required Holders may reasonably request in order to establish the existence and good standing of the Guarantor and the authorization of the transactions contemplated by this Joinder Agreement and any such security document.

 

Exhibit 1(b)(ii)-7

 

Exhibit 4.4(a)(i)

 

Form of Opinion of U.S. Special Counsel for the Obligors

 

See attached

 

Exhibit 1(b)(ii)-8

 

Exhibit 4.4(a)(ii)

 

Form of Opinion of English Special Counsel for the Obligors

 

See attached

 

 

Exhibit 4.4(a)(iii)

 

Form of Opinion of New Jersey Special Counsel for the Obligors

 

See attached

 

 

Exhibit 4.4(b)(i)

 

Form of Opinion of English Special Counsel for the Purchasers

 

See attached

 

 

Exhibit 4.4(b)(ii)

 

Form of Opinion of U.S. Special Counsel for the Purchasers

 

See attached

 

 

Exhibit 4.11

 

Form of Intercreditor Deed

 

See attached

 

 

Exhibit 4.18

 

Commitment Letter

 

See attached

 

 

Exhibit 4.20

 

Form of Hedging Letter

 

To:                  The Prudential Insurance Company of America

RGA Reinsurance Company

 

2011

 

Dear Sirs

 

Note Purchase Agreement dated on or about the date of this letter and made by and among BA Holdings, Inc. (the “Issuer”), Luxfer Holdings PLC, each of the parties listed in Schedule C thereto and each of the purchasers listed in Schedule A thereto (the “Note Purchase Agreement”).

 

We refer to the Note Purchase Agreement.  Terms defined in the Note Purchase Agreement shall have the same meaning when used in this letter unless otherwise defined in this letter.  This letter is the Hedging Letter.

 

We confirm that in consideration of your entering into the Note Purchase Agreement, Luxfer Holdings PLC shall enter into or shall procure that the Issuer will enter into, within 60 days of the date of the Note Purchase Agreement, such Hedging Agreements (as defined in the Intercreditor Deed) with a Bank Lender to ensure that from the date 60 days after the date of the Note Purchase Agreement until the Termination Date (as defined in the Intercreditor Deed) not less than 50% in aggregate of all outstanding (i) Facility A Loans (as defined in the Bank Facilities Agreement) and (ii) Notes are either interest rate hedged or provided on a fixed rate basis.

 

This letter is a Note Document.

 

This letter shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

Please sign and return to us the enclosed copy of this letter to confirm your agreement to its terms.

 

Yours faithfully

 

 

	
 
    	
 
    
	
For   and on behalf of
    	
 
    
	
Luxfer   Holdings PLC
    	
 
    

 

Exhibit 4.20-1

 

[On duplicate]

 

We hereby acknowledge and confirm our agreement to the terms of the letter of which this is a duplicate.

 

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

 

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
Vice   President
    	
 
    

 

 

	
RGA REINSURANCE COMPANY
    	
 
    
	
By:
    	
Prudential   Private Placement Investors,
    	
 
    
	
 
    	
L.P.   (as Investment Advisor)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Prudential   Private Placement Investors, Inc.
    	
 
    
	
 
    	
 
    	
(as   its General Partner)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
Vice   President
    	
 
    

 

Exhibit 4.20-2

 

Exhibit 7.2

 

Form of Compliance Certificate

 

To:          [Holders of Notes]

 

From:     Luxfer Holdings PLC

 

Dated:

 

Dear Sirs

 

Note Purchase Agreement, dated as of May 13, 2011, by and among BA Holdings, Inc., Luxfer Holdings PLC, each of the parties listed in Schedule C thereto and each of the purchasers listed in Schedule A thereto (the “Note Purchase Agreement”)

 

1                                         We refer to the Note Purchase Agreement.  This is a Compliance Certificate.  Terms defined in the Note Purchase Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2                                         With reference to the [Annual Financial Statements] [Quarterly Financial Statements] for the [Financial Year ended [          ]] [Financial Quarter ended [          ]], we confirm that:

 

	
Covenant
    	
 
    	
Relevant
   Period
    	
 
    	
Target
    	
 
    	
Actual
    	
 
    	
Compliant/Non
   compliant
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Debt   Service Cover (Section 9.1(a)(i))
    	
 
    	
[          ]   to [          ]
    	
 
    	
Not   less than [    ]:1
    	
 
    	
[    ]:1
    	
 
    	
[        ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interest   Cover (Section 9.1(a)(ii))
    	
 
    	
[          ]   to [          ]
    	
 
    	
Not   less than 4.0:1
    	
 
    	
[    ]:1
    	
 
    	
[        ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Leverage   (Section 9.1(a)(iii))
    	
 
    	
[          ]   to [          ]
    	
 
    	
Not   exceeding 3.0:1
    	
 
    	
[    ]:1
    	
 
    	
[        ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Capital   Expenditure (Section 9.1(a)(iv))
    	
 
    	
[          ]   to [          ]
    	
 
    	
Not   exceeding $[          ] (110%   of budgeted capital expenditure)
    	
 
    	
$[          ]
    	
 
    	
[        ]
    

 

Exhibit 7.2-1

 

Set forth in Exhibit A attached hereto are detailed calculations of each of the ratios set forth above.

 

3                                         We confirm that we have reviewed the relevant terms hereof and have made, or caused to be made, under our supervision, a review of the transactions and conditions of the Group from the beginning of the interim or annual period covered by the statements being furnished herewith to the date hereof and that such review has not disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default.(11)

 

4                                         We confirm that the following companies constitute Material Companies for the purposes of the Note Purchase Agreement (Section 9.31(b)):

 

[                ]

 

5                                         We confirm that the following companies are obligated as a borrower or a guarantor under or with respect to a Principal Lending Facility (Section 9.31(c)):

 

[                ]

 

6                                         We confirm that the aggregate earnings before interest, tax and amortization (calculated on the same basis as EBITA) of the Obligors (calculated on an unconsolidated basis and excluding all unrealized intra-Group profits of any member of the Group) exceeds 75% of EBITA of the Group (Section 9.31(a)(i)).

 

7                                         We confirm that the aggregate gross assets of the Obligors (calculated on an unconsolidated basis and excluding all intra-Group items and investments in Subsidiaries of any member of the Group) exceeds 75% of the consolidated gross assets of the Group (Section 9.31(a)(ii)).

 

 

	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
Finance   Director of
    	
 
    	
Director   of
    
	
 
    	
Luxfer   Holdings PLC
    	
 
    	
Luxfer   Holdings PLC
    

 

 

[insert applicable certification language]

 

 

	
 
    	
 
    	
 
    
	
for and on behalf of
    	
 
    	
 
    

 

(11)  If any condition or event that constitutes a Default or an Event of Default existed or exists, the certificate should specify the nature and period of existence thereof and what action the Obligors have taken or propose to take with respect thereto.

 

Exhibit 7.2-2

 

	
[name of Auditors of Luxfer Holdings PLC](12)
    	
 
    	
 
    

 

(12)  Only applicable if the Compliance Certificate accompanies the Audited Financial Statements and is to be signed by the Auditors.  To be agreed with the Parent Guarantor’s Auditors prior to signing of the Agreement.

 

Exhibit 7.2-3

 

Exhibit A

 

Calculations of Financial Covenants

 

Exhibit 7.2-4

 

Schedule 5.11

 

Disclosure Documents

 

None.

 

Schedule 5.11-1

 

Schedule 5.23

 

Group Structure Chart

 

See attached

 

Schedule 5.23-1

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