Document:

Exhibit 10.3

 

EXECUTION COPY

Published CUSIP Number: [891930BH1]

 

FIVE YEAR CREDIT AGREEMENT

Dated as of February 26, 2013

among

TOYOTA MOTOR CREDIT CORPORATION,

TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.,

TOYOTA FINANCIAL SERVICES (UK) PLC,

TOYOTA LEASING GMBH,

TOYOTA CREDIT DE PUERTO RICO CORP.,

TOYOTA CREDIT CANADA INC.,

and

TOYOTA KREDITBANK GMBH,

as the Borrowers,

BNP PARIBAS

as Administrative Agent, Swing Line Agent and Swing Line Lender

 

and

 

The Other Lenders Party Hereto

____________________________________________

BNP PARIBAS SECURITIES CORP.

CITIGROUP GLOBAL MARKETS INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as Joint Lead Arrangers and Joint Book Managers

_____________________________________________

CITIBANK, N.A.,

as Syndication Agent and Swing Line Lender

______________________________________________

BANK OF AMERICA, N.A.,

as Syndication Agent and Swing Line Lender

______________________________________________

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as Syndication Agent

  

  

  

 

TABLE OF CONTENTS

 

	  	
Page

	  	  
	
ARTICLE I DEFINITIONS

	
1

	
Section 1.1 Definitions

	
1

	
Section 1.2 Other Interpretive Provisions

	
25

	
Section 1.3 Accounting Terms

	
26

	
Section 1.4 References to Agreements and Laws

	
26

	
Section 1.5 Exchange Rates; Currency Equivalents

	
26

	
Section 1.6 Additional Alternative Currencies

	
26

	
Section 1.7 Change of Currency

	
27

	
Section 1.8 Times of Day

	
28

	
ARTICLE II THE CREDITS

	
28

	
Section 2.1 Committed Loans

	
28

	
Section 2.2 Borrowings, Conversions and Continuations of Committed Loans

	
28

	
Section 2.3 Money Market Loans

	
31

	
Section 2.4 Prepayments

	
33

	
Section 2.5 Termination or Reduction of Commitments

	
35

	
Section 2.6 Repayment of Loans

	
36

	
Section 2.7 Interest

	
36

	
Section 2.8 Fees

	
37

	
Section 2.9 Computation of Interest and Fees

	
38

	
Section 2.10 Evidence of Debt

	
38

	
Section 2.11 Payments Generally

	
38

	
Section 2.12 Sharing of Payments

	
41

	
Section 2.13 Extension of Revolving Maturity Date

	
42

 

  

i

  

 

	
Section 2.14 Increase in Commitments

	
43

	
Section 2.15 Drawings of Bankers' Acceptances, Drafts and BA Equivalent Notes

	
44

	
Section 2.16 Swing Line Loans

	
47

	
Section 2.17 Defaulting Lenders

	
51

	
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY

	
52

	
Section 3.1 Taxes

	
52

	
Section 3.2 Illegality

	
54

	
Section 3.3 Inability to Determine Rates

	
55

	
Section 3.4 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurocurrency Rate Loans

	
55

	
Section 3.5 Funding Losses

	
56

	
Section 3.6 Matters Applicable to all Requests for Compensation

	
57

	
ARTICLE IV CONDITIONS

	
58

	
Section 4.1 Effectiveness

	
58

	
Section 4.2 Conditions to all Loans

	
59

	
ARTICLE V REPRESENTATIONS AND WARRANTIES

	
60

	
Section 5.1 Corporate Existence and Power

	
60

	
Section 5.2 Corporate and Governmental Authorization: No Contravention

	
60

	
Section 5.3 Binding Effect

	
60

	
Section 5.4 Financial Information

	
61

	
Section 5.5 Litigation

	
61

	
Section 5.6 Taxes

	
61

	
Section 5.7 Not an Investment Company

	
61

	
Section 5.8 Disclosure

	
61

	
Section 5.9 Representations as to Non-US Obligors

	
61

	
Section 5.10 Representations as to TCPR

	
62

 

  

ii

  

 

	
ARTICLE VI COVENANTS

	
63

	
Section 6.1 Information

	
63

	
Section 6.2 Maintenance of Property; Insurance

	
64

	
Section 6.3 Conduct of Business and Maintenance of Existence

	
65

	
Section 6.4 Compliance with Laws

	
65

	
Section 6.5 Negative Pledge

	
65

	
Section 6.6 Consolidations

	
67

	
Section 6.7 Use of Proceeds

	
68

	
ARTICLE VII DEFAULTS

	
68

	
Section 7.1 Events of Default

	
68

	
Section 7.2 Application of Funds

	
70

	
ARTICLE VIII THE ADMINISTRATIVE AGENT

	
71

	
Section 8.1 Appointment and Authorization of Administrative Agent

	
71

	
Section 8.2 Delegation of Duties

	
71

	
Section 8.3 Liability of Administrative Agent

	
71

	
Section 8.4 Reliance by Administrative Agent

	
72

	
Section 8.5 Notice of Default

	
72

	
Section 8.6 Credit Decision; Disclosure of Information by Administrative Agent

	
72

	
Section 8.7 Indemnification of Administrative Agent

	
73

	
Section 8.8 Administrative Agent in its Individual Capacity

	
73

	
Section 8.9 Successor Administrative Agent and Sub-Agents

	
74

	
Section 8.10 Administrative Agent May File Proofs of Claim

	
75

	
Section 8.11 Other Agents, Arrangers and Managers

	
75

	
Section 8.12 Canadian Sub-Agent

	
76

	
ARTICLE IX MISCELLANEOUS

	
76

 

  

iii

  

 

	
Section 9.1 Amendments, Etc.

	
76

	
Section 9.2 Notices and Other Communications; Facsimile Copies

	
77

	
Section 9.3 No Waiver; Cumulative Remedies

	
79

	
Section 9.4 Attorney Costs, Expenses and Taxes

	
80

	
Section 9.5 Indemnification by the Borrowers

	
80

	
Section 9.6 Payments Set Aside

	
81

	
Section 9.7 Successors and Assigns

	
82

	
Section 9.8 Confidentiality

	
85

	
Section 9.9 Set-off

	
86

	
Section 9.10 Interest Rate Limitation

	
86

	
Section 9.11 Counterparts

	
86

	
Section 9.12 Integration

	
87

	
Section 9.13 Survival of Representations and Warranties

	
87

	
Section 9.14 Severability

	
87

	
Section 9.15 Tax Forms

	
87

	
Section 9.16 Replacement of Lenders

	
90

	
Section 9.17 Governing Law

	
90

	
Section 9.18 No Advisory or Fiduciary Responsibility

	
91

	
Section 9.19 PATRIOT Act Notice

	
92

	
Section 9.20 Judgment

	
92

	
Section 9.21 Waiver of Right to Trial by Jury

	
93

 

	
Schedules

	  
	 	 
	
Schedule 1.1

	
Mandatory Cost Formulae

	
Schedule 2.1

	
Commitments and Pro Rata Shares

	
Schedule 9.2

	
Administrative Agent's Office, Certain Addresses for Notices

 

  

iv

  

 

	  	  
	
Exhibits

	  
	  	  
	
Exhibit A-1

	
Form of Committed Loan Notice

	
Exhibit A-2

	
Form of Swing Line Loan Notice

	
Exhibit B

	
Form of Note

	
Exhibit C

	
[Reserved]

	
Exhibit D

	
Assignment and Assumption

	
Exhibit E

	
Form of Money Market Quote Request

	
Exhibit F

	
Form of Invitation for Money Market Quotes

	
Exhibit G

	
Form of Money Market Quote

	
Exhibit H

	
Form of Opinion of Counsel to TMCC

	
Exhibit I-1

	
Form of Opinion of Counsel to TCPR

	
Exhibit I-2

	
Form of Opinion of Counsel to TCCI

	
Exhibit I-3

	
Form of Opinion of Counsel to TFSUK

	
Exhibit I-4

	
Form of Opinion of Counsel to TMFNL

	
Exhibit I-5

	
Form of Opinion of Counsel to TKG and TLG

 

 

  

v

  

 

 

FIVE YEAR CREDIT AGREEMENT

 

THIS FIVE YEAR CREDIT AGREEMENT (this “Agreement”) dated as of February 26, 2013 is made among TOYOTA MOTOR CREDIT CORPORATION, a California corporation (“TMCC”), TOYOTA MOTOR FINANCE (NETHERLANDS) B.V., a corporation organized under the laws of the Netherlands (“TMFNL”), TOYOTA FINANCIAL SERVICES (UK) PLC, a corporation organized under the laws of England (“TFSUK”), TOYOTA LEASING GMBH , a corporation organized under the laws of Germany (“TLG”), TOYOTA CREDIT DE PUERTO RICO CORP., a corporation organized under the laws of the Commonwealth of Puerto Rico (“TCPR”), TOYOTA CREDIT CANADA INC., a corporation incorporated under the laws of Canada (“TCCI”), TOYOTA KREDITBANK GMBH, a corporation organized under the laws of Germany (“TKG” and, together with TMCC, TMFNL, TFSUK, TLG, TCPR and TCCI, the “Borrowers”), each lender from time to time party hereto (collectively, the “Lenders” and, individually, a “Lender”), BNP PARIBAS, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP PARIBAS SECURITIES CORP. (“BNPP Securities”), CITIGROUP GLOBAL MARKETS INC. (“CGMI”), MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (“MLPFS”) and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (“BTMU”), as Joint Lead Arrangers and Joint Book Managers, CITIBANK, N.A. and BANK OF AMERICA, N.A., as Swing Line Lenders, and CITIBANK, N.A., BANK OF AMERICA, N.A. and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as Syndication Agents.

 

WHEREAS, the Borrowers have requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

 

ARTICLE I

 

DEFINITIONS

 

Section  1.1 Definitions.  The following terms, as used herein, have the following meanings:

 

“Absolute Rate Auction” means a solicitation of Money Market Quotes setting forth Money Market Absolute Rates pursuant to Section 2.3.

 

“Administrative Agent” means BNP Paribas, in its capacity as Administrative Agent for the Lenders hereunder, and its successors in such capacity.

 

“Administrative Agent’s Office” means, with respect to any currency, the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 9.2 with respect to such currency, or such other address or account with respect to such currency as the Administrative Agent may from time to time notify to the Borrowers and the Lenders.

 

  

1

  

 

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative Agent (with a copy to the Borrowers) duly completed by such Lender.

 

“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Agent-Related Persons” means the Administrative Agent, together with its Affiliates (including, in the case of BNP Paribas in its capacity as the Administrative Agent and a Swing Line Agent, BNPP Securities as an Arranger, BNP Paribas (Canada) in its capacity as Canadian Sub-Agent and BNP Paribas London in its capacity as a Swing Line Agent), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates.

 

“Aggregate Commitments” means (i) the Commitments of all the Lenders, (ii) when used in relation to the Tranche A Borrowers, the Aggregate Tranche A Commitments and (iii) when used in relation to TCCI, the Aggregate Tranche B Commitments.

 

“Aggregate Tranche A Commitments” means the Tranche A Commitments of all the Tranche A Lenders.

 

“Aggregate Tranche B Commitments” means the Tranche B Commitments of all the Tranche B Lenders; provided that in no event shall the Aggregate Tranche B Commitments exceed US$766,600,000 .

 

“Agreement” means this Credit Agreement.

 

“Alternative Currency” means each of Euro, Sterling, Canadian Dollars and each other currency (other than US Dollars) that is approved in accordance with Section 1.6.

 

“Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in US Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the Administrative Agent at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of such Alternative Currency with US Dollars.

 

“Applicable Minimum/Maximum Rate” means, as of any day, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below:

 

  

2

  

 

 

	
Public Debt Rating

S&P/Moody’s

	
Applicable

Minimum Rate

	
Applicable

Maximum Rate

	
Level 1

At least AA-/Aa3

	
 

1.000%

	
 

1.750%

	
Level 2

Less than Level 1 but at least A+/A1

	
 

1.125%

	
 

1.875%

	
Level 3

Less than Level 2 but at least A/A2

	
 

1.250%

	
 

2.000%

	
Level 4

Less than Level 3

	
 

1.375%

	
 

2.125%

 

 

“Applicable Percentage” means, as of any day, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below:

 

	
Public Debt Rating

S&P/Moody’s

	
Applicable

Percentage

	
Level 1

At least AA-/Aa3

	
 

0.080%

	
Level 2

Less than Level 1 but at least A+/A1

	
 

0.100%

	
Level 3

Less than Level 2 but at least A/A2

	
 

0.125%

	
Level 4

Less than Level 3

	
 

0.150%

 

 

“Applicable Rate” means (i) for Eurocurrency Rate Loans, Swing Line Loans, Bankers’ Acceptances, Drafts and BA Equivalent Notes, as of any day, a percentage per annum equal to the Market Rate Spread on the Spread Determination Date in relation to such day, less the Applicable Percentage in effect on such day and (ii) for Base Rate Loans or Canadian Prime Rate Loans, a rate per annum that is 100 basis points lower than the rate determined in accordance with clause (i) above; provided that in no event shall the Applicable Rate for Base Rate Loans or Canadian Prime Rate Loans be lower than 0.00%.

 

“Applicable Time” means, with respect to any borrowings and payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Administrative Agent to be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment.

 

“Applicable Tranche Lenders” means (i) with respect to the Tranche A Commitments or the Tranche A Borrowers, the Tranche A Lenders and (ii) with respect to the Tranche B Commitments or TCCI, the Tranche B Lenders.

 

“Arranger” means any of BNPP Securities, CGMI, MLPFS or BTMU, in its capacity as a joint lead arranger and a joint book manager.

 

  

3

  

 

“Assignment and Assumption” means an Assignment and Assumption substantially in the form of Exhibit D.

 

“Attorney Costs” means and includes all reasonable fees, expenses and disbursements of any law firm or other external counsel and, without duplication, the reasonable allocated cost of internal legal services and all expenses and disbursements of internal counsel.

 

“Audited Financial Statements” means (i) for TMFNL, the audited statement of financial position of TMFNL as at, or for the fiscal year ended, March 31, 2012 (or such later date for which audited financial statements are delivered pursuant to this Agreement) and the related audited comprehensive statement of income, statement of changes in equity and statement of cash flows for such fiscal year, including the notes thereto, (ii) for TCCI and TCPR, the audited balance sheet of such Borrower for the fiscal year ended March 31, 2012 (or such later date for which audited financial statements are delivered pursuant to this Agreement) and the related statement of income or operations, shareholders’ equity and cash flows for such fiscal year, including the notes thereto, (iii) for TMCC, the audited consolidated balance sheet of TMCC and its Subsidiaries for the fiscal year ended March 31, 2012 (or such later date for which audited financial statements are delivered pursuant to this Agreement) and the related consolidated statement of income or operations, shareholders’ equity and cash flows for such fiscal year of TMCC and its Subsidiaries, including the notes thereto, (iv) for TFSUK and its Subsidiaries, the audited statements of financial position of TFSUK and its Subsidiaries and of TFSUK, in each case, as at, or for the fiscal year ended, March 31, 2012 (or such later date for which audited financial statements are delivered pursuant to this Agreement), the audited consolidated income statement, the audited consolidated and company statements of comprehensive income, the audited consolidated and company statements of changes in equity and the audited consolidated and company cash flow statements for such financial year of TFSUK and its Subsidiaries, including the notes thereto, and (v) for TKG and TLG, the audited balance sheet of each such Borrower for the fiscal year ended March 31, 2012 (or such later date for which audited financial statements are delivered pursuant to this Agreement) and the related statement of income or operations and shareholders’ equity for such fiscal year, including the notes thereto (presented in each case on a consolidated basis for TKG).

 

“BA Equivalent Note” has the meaning specified in Section 2.15(i).

 

“BA Maturity Date” means, for each Bankers’ Acceptance, Draft or BA Equivalent Note comprising part of the same Drawing, the date on which the Face Amount for such Bankers’ Acceptance, Draft or BA Equivalent Note, as the case may be, becomes due and payable in accordance with the provisions set forth below, which shall be a Canadian Business Day occurring 30, 60, 90 or 180 days (or, subject to availability, such greater period not to exceed 364 days) after the date on which such Bankers’ Acceptance, Draft or BA Equivalent Note is created and purchased as part of any Drawing, as TCCI may select upon notice received by the Administrative Agent not later than 11:00 A.M. (Montreal time) on a Canadian Business Day at least two Canadian Business Days prior to the date on which such Bankers’ Acceptance or Draft is to be purchased or BA Equivalent Note is to be made (whether as a new Drawing or by renewal); provided, however, that:

 

  

4

  

 

(a)           TCCI may not select any BA Maturity Date for any Bankers’ Acceptance, Draft or BA Equivalent Note that occurs after the then scheduled latest Revolving Maturity Date;

 

(b)           the BA Maturity Date for all Bankers’ Acceptances, Drafts and BA Equivalent Notes comprising part of the same Drawing shall occur on the same date; and

 

(c)           whenever the BA Maturity Date for any Bankers’ Acceptance, Draft or BA Equivalent Note would otherwise occur on a day other than a Canadian Business Day, such BA Maturity Date shall be extended to occur on the next succeeding Canadian Business Day.

 

“Bankers’ Acceptance” has the meaning specified in Section 2.1(b).

 

“Base Rate” means, (a) in respect of Tranche A, for any day, a fluctuating rate per annum equal to the highest of (i) the Federal Funds Rate plus 1⁄2 of 1%, (ii) BBA LIBOR applicable to US Dollars for an assumed Interest Period of one month commencing on such day (or the most recent day, preceding such day, on which rates have been quoted for such a period) plus 1⁄2 of 1% (for the avoidance of doubt, BBA LIBOR for any day shall be based on the rate published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00 a.m. London time on such day) and (iii) the rate of interest in effect for such day as publicly announced from time to time by BNP Paribas in the United States as its “prime rate.”  The “prime rate” is a rate set by BNP Paribas based upon various factors including BNP Paribas’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate and (b) in respect of Tranche B, for any day, the fluctuating rate per annum equal to the highest of the rates determined in accordance with clause (a)(i), clause (a)(ii), and the rate of interest in effect for such day as publicly announced from time to time by BNP Paribas (Canada) in Montreal as its “prime rate” for US Dollars.  Any change in such rate announced by BNP Paribas or BNP Paribas (Canada) shall take effect at the opening of business on the day specified in the public announcement of such change.

 

“Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

 

“Base Rate Loan” means a Loan denominated in US Dollars that bears interest based on the Base Rate.  All Base Rate Loans shall be denominated in US Dollars.

 

“BBA LIBOR” has the meaning specified in the definition of “Eurocurrency Base Rate”.

 

“Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group.

 

“Borrower” means any of TMCC, TMFNL, TFSUK, TLG, TCPR, TCCI or TKG, as applicable.

 

“Borrower Materials” has the meaning specified in Section 6.1.

 

  

5

  

 

“Borrowers’ Representative” has the meaning specified in Section 9.2(e).

 

“Borrowing” means a Committed Borrowing, a Money Market Borrowing or a Swing Line Borrowing, as the context may require.

 

“Business Day” means (i) any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, any of the following:  the state where the Administrative Agent’s Office is located, California, New York, and San Juan, Puerto Rico, (ii) if such day relates to any Eurocurrency Rate Loan or Money Market LIBOR Loan denominated in US Dollars, any such day on which dealings in US Dollar deposits are conducted by and between banks in the London interbank eurodollar market, (iii) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan, Money Market LIBOR Loan or Swing Line Loan denominated in Euro, a TARGET2 Day; (iv) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan, Money Market LIBOR Loan or Swing Line Loan denominated in a currency other than US Dollars or Euro, means any such day on which dealings in deposits in the relevant currency are conducted by and between banks in the London or other applicable offshore interbank market for such currency; and (v) if such day relates to any Tranche B Loan, a Canadian Business Day.

 

“Canadian Business Day” means a day of the year on which banks are not required or authorized by law to close in Toronto, Ontario or in Montreal, Quebec, Canada or New York, New York.

 

“Canadian Dollars” and “CDN$” each means lawful money of Canada.

 

“Canadian ITA” means the Income Tax Act (Canada) as amended.

 

“Canadian Prime Rate” means, on any day, a fluctuating rate of interest per annum equal to the average of the rates of interest per annum most recently announced by each Canadian Reference Bank as its reference rate of interest for loans made in Canadian Dollars to Canadian customers and designated as such Canadian Reference Bank’s “prime rate” (a Canadian Reference Bank’s “prime rate” being a rate set by such Canadian Reference Bank based upon various factors, including such Canadian Reference Bank’s costs and desired returns and general economic conditions, and is used as a reference point for pricing some loans, which may be priced at, above or below such announced rate).  Any change in such rate announced by the Canadian Sub-Agent shall take effect at the opening of business on the day specified in the public announcement of such change.  Each interest rate based upon the Canadian Prime Rate shall be adjusted simultaneously with any change in the Canadian Prime Rate.

 

“Canadian Prime Rate Loan” means a Tranche B Loan denominated in Canadian Dollars that bears interest based on the Canadian Prime Rate.

 

“Canadian Reference Banks” means BNP Paribas (Canada), Citibank, N.A., Canadian Branch and Toronto Dominion Bank.

 

“Canadian Sub-Agent” means BNP Paribas (Canada).

 

  

6

  

 

“Canadian Sub-Agent’s Office” means, with respect to Canadian Dollars, the Canadian Sub-Agent’s address and, as appropriate, account as set forth on Schedule 9.2, or such other address or account with respect to such currency as the Canadian Sub-Agent may from time to time notify to TCCI and the Tranche B Lenders.

 

“Closing Date” means the first date all the conditions precedent in Section 4.1 are satisfied or waived in accordance with Section 4.1 (or, in the case of Section 4.1(b), waived by the Person entitled to receive the applicable payment).

 

“Code” means the Internal Revenue Code of 1986, as amended and any successor statute.

 

“Commitment” means, as to each Lender, its Tranche A Commitment or its Tranche B Commitment, as applicable.

 

“Commitment Cap” means, as to each Lender, the amount set opposite its name on Schedule 2.1 as such Lender’s “Commitment Cap” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the same Type and Tranche and, in the case of Eurocurrency Rate Loans, having the same Interest Period made by each of the appropriate Lenders pursuant to Section 2.1.

 

“Committed Loan” means a Committed Tranche A Loan or a Committed Tranche B Loan.

 

“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion of Committed Loans from one Type to the other and (c) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.2(a), which, if in writing, shall be substantially in the form of Exhibit A-1.

 

“Committed Tranche A Loan” means a loan made by a Tranche A Lender pursuant to Section 2.1(a).

 

“Committed Tranche B Loan” means a loan made by, or the purchase or acceptance of Bankers’ Acceptances or purchase of Drafts by, a Tranche B Lender pursuant to Section 2.1(b).

 

“Consenting Lenders” has the meaning specified in Section 2.13(b).

 

“Consolidated Subsidiary” means, with respect to any Person, at any date any Subsidiary or other entity the accounts of which would be consolidated with those of such Person in its consolidated financial statements if such statements were prepared as of such date.

 

“Control” has the meaning specified in the definition of “Affiliate.”

 

“Debtor Relief Law” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the 

 

  

7

  

 

United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Default” means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Default Excess” means, with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s ratable portion of the aggregate outstanding principal amount of the Loans of all Lenders (calculated as if all Defaulting Lenders had funded all of their respective Defaulted Loans) over the aggregate outstanding principal amount of all Loans actually funded by such Defaulting Lender.

 

“Default Period” means, with respect to any Defaulting Lender, the period commencing on the date of the applicable Defaulted Loan and ending on the earlier of the following dates: (i) the date on which (a) the Default Excess with respect to such Defaulting Lender has been reduced to zero (whether by the funding of any Defaulted Loan by such Defaulting Lender or by the non-pro-rata application of any prepayment pursuant to Section 2.17) and (b) such Defaulting Lender shall have delivered to TMCC, the applicable Borrower and the Administrative Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Commitments; and (ii) the date on which TMCC, the applicable Borrower, the Administrative Agent and the Required Lenders waive in writing all defaults relating to the failure of such Defaulting Lender to fund.

 

“Default Rate”, with respect to any Loan, means an interest rate equal to the interest rate (including the Applicable Rate and any Mandatory Cost) otherwise applicable to such Loan plus 2% per annum, to the fullest extent permitted by applicable Laws.

 

“Defaulted Loan” means any Loan that a Defaulting Lender has failed to make.

 

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Committed Loans or participations in Swing Line Loans required to be funded by it hereunder within two Business Days of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, and such failure is continuing, unless the subject of a good faith dispute, (c) has notified any Borrower or the Administrative Agent in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (d) has failed, within three Business Days after request by the Administrative Agent, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund prospective Committed Loans and participations in Swing Line Loans required to be funded by it hereunder, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (d) upon the Administrative Agent’s receipt of such certification in form and substance 

 

  

8

  

 

reasonably satisfactory to it, or (e) is or becomes (or whose parent company is or becomes) the subject of a bankruptcy, insolvency, receivership or conservatorship proceeding; provided, however, that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any ownership interest in such Lender or parent company thereof or the exercise of control over a Lender or parent company thereof by a governmental authority or instrumentality thereof so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such governmental authority) to reject, repudiate, disavow or disaffirm any contracts or arrangements made with such Lender.

 

“Discount Rate” means, in respect of any Bankers’ Acceptances or Drafts to be purchased by a Tranche B Lender pursuant to Section 2.1(b):  (i) for a Tranche B Lender that is a Schedule I Bank, the average rate (calculated on an annual basis of a year of 365 days and rounded up to the nearest five decimal places, if such average is not such a multiple) for Canadian Dollar bankers’ acceptances having a comparable term that appears on the Reuters Screen CDOR Page (or such other page as is a replacement page for such bankers’ acceptances) at 10:00 A.M. (Montreal time) or, if such rate is not available at such time, the applicable discount rate in respect of such Bankers’ Acceptances or Drafts shall be the average (as determined by the Canadian Sub-Agent) of the respective actual discount rates (calculated on an annual basis of 365 days and rounded up to the nearest five decimal places, if such average is not such a multiple), quoted to the Canadian Sub-Agent by each Canadian Reference Bank as the discount rate at which such Canadian Reference Bank would purchase, as of 10:00 A.M. (Montreal time) on the date of such Drawing, its own bankers’ acceptances having an aggregate Face Amount equal to and with a term to maturity the same as the Bankers’ Acceptances or Drafts to be acquired by such Lender as part of such Drawing; and (ii) for each other Tranche B Lender and any other Lender or Person, the average rate determined by the Canadian Sub-Agent pursuant to clause (a) plus 0.10%.

 

“Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in US Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent amount thereof in US Dollars as determined by the Administrative Agent at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of US Dollars with such Alternative Currency.

 

“Draft” means, at any time, either a depository bill within the meaning of the Depository Bills and Notes Act, or a bill of exchange within the meaning of the Bills of Exchange Act (Canada), drawn by TCCI on a Lender or any other Person and bearing such distinguishing letters and numbers as the Lender or the Person may determine, but which at such time has not been completed as the payee or accepted by the Lender or the Person.

 

“Drawing” means the simultaneous (i) creation and purchase of Bankers’ Acceptances by the Tranche B Lenders, in accordance with Section 2.15(a), or (ii) the purchase of completed Drafts by a Tranche B Lender in accordance with Section 2.15(a).

 

“Drawing Fee” means, with respect to each Draft drawn by TCCI and purchased by any Person on any Drawing Date and subject to the provisions of Section 2.15, an amount equal to 

 

  

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the product of (i) the Applicable Rate times the aggregate Face Amount of the Draft, multiplied by (ii) a fraction the numerator of which is the number of days in the term to maturity of such Draft and the denominator of which is 365 or 366, as applicable.

 

“Drawing Purchase Price” means, with respect to each Bankers’ Acceptance or Draft to be purchased by any Tranche B Lender at any time, the amount (adjusted to the nearest whole cent or, if there is no nearest whole cent, the next higher whole cent) obtained by dividing (i) the aggregate Face Amount of such Bankers’ Acceptance, by (ii) the sum of (A) one and (B) the product of (1) the Discount Rate applicable to such Tranche B Lender in effect at such time (expressed as a decimal) multiplied by (2) a fraction the numerator of which is the number of days in the term to maturity of such Bankers’ Acceptance or Draft and the denominator of which is 365 days.

 

“Eligible Assignee” has the meaning specified in Section 9.7(i).

 

“EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.

 

“Environmental Laws” means any and all Laws relating to the environment, the effect of the environment on human health or to emissions, discharges or releases of pollutants, contaminants, hazardous substances or wastes into the environment including, without limitation, ambient air, surface water, ground water, or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, hazardous substances or wastes or the clean-up or other remediation thereof.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

 

“ERISA Group” means any Borrower organized under the laws of the United States or any State thereof, the District of Columbia or Puerto Rico, any Subsidiary of such Borrower and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with such Borrower, or any such Subsidiary, are treated as a single employer under Section 414 of the Code.

 

“Euro” and “EUR” mean the lawful currency of the Participating Member States introduced in accordance with the EMU Legislation.

 

“Eurocurrency Base Rate” has the meaning set forth in the definition of Eurocurrency Rate.

 

“Eurocurrency Rate” means for any Interest Period with respect to any Eurocurrency Rate Loan, a rate per annum determined by the Administrative Agent pursuant to the following formula:

 

 

	Eurocurrency Rate	   =   	Eurocurrency Base Rate 
	
1.00 minus Eurocurrency Reserve Percentage

                                                                                              

Where,

 

  

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“Eurocurrency Base Rate” means, for such Interest Period, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time for any reason, then the “Eurocurrency Base Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in the relevant currency for delivery on the first day of such Interest Period in Same Day Funds in the approximate amount of the Eurocurrency Rate Loan being made, continued or converted by BNP Paribas London and with a term equivalent to such Interest Period would be offered by BNP Paribas London (or other BNP Paribas branch or Affiliate) to major banks in the London or other offshore interbank market for such currency at their request at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period.

 

“Eurocurrency Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the FRB for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirements) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”).  The Eurocurrency Rate for each outstanding Eurocurrency Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurocurrency Reserve Percentage.

 

“Eurocurrency Rate Loan” means a Committed Loan that bears interest at a rate based on the Eurocurrency Rate.  Eurocurrency Rate Loans may be denominated in US Dollars or in an Alternative Currency.  All Committed Loans denominated in an Alternative Currency (other than Canadian Dollar Loans made under Tranche B) must be Eurocurrency Rate Loans.

 

“Event of Default” has the meaning set forth in Section 7.1.

 

“Exempt Lender” means a Tranche A Lender that is any of the following:  (i) a Corporate Lender organized under the Laws of Puerto Rico, (ii) a Corporate Lender organized under the Laws of a jurisdiction other than Puerto Rico that is engaged in the conduct of a trade or business in Puerto Rico, or (iii) a Lender organized under the Laws of a jurisdiction other than Puerto Rico that is not engaged in the conduct of a trade or business in Puerto Rico and that is not a “related person” to TCPR for purposes of Section 1231(a)(1)(A)(i) of the Puerto Rico Code by reason of the fact that such Lender does not own, directly or indirectly in accordance with the attribution rules of Section 1231(a)(3) of the Puerto Rico Code, 50% or more of the value of the stock of TCPR.  As used in this definition, “Corporate Lender” means a Lender that is taxable as a corporation under the Puerto Rico Code.

 

“Existing Credit Facilities” means (a) the 364-Day Credit Agreement dated as of February 28, 2012 among TMCC, TMFNL, TFSUK, TLG, TCPR, TCCI and TKG, the lenders 

 

  

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party thereto, BNP Paribas, as administrative agent, swing line agent and swing line lender, Citibank, N.A., as syndication agent and swing line lender, Bank of America, N.A., as syndication agent and swing line lender, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as syndication agent, and JPMorgan Chase Bank, N.A., as documentation agent, (b) the Three Year Credit Agreement dated as of March 1, 2011, as amended by Amendment No. 1 dated as of February 28, 2012, among TMCC, TMFNL, TFSUK, TLG, TCPR, TCCI and TKG, the lenders party thereto, BNP Paribas, as administrative agent, swing line agent and swing line lender, Citibank, N.A., as syndication agent and swing line lender, Bank of America, N.A., as syndication agent and swing line lender, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as syndication agent, and JPMorgan Chase Bank, N.A., as documentation agent, and (c) the Five Year Credit Agreement dated as of March 1, 2011, as amended by Amendment No. 1 dated as of February 28, 2012, among TMCC, TMFNL, TFSUK, TLG, TCPR, TCCI and TKG, the lenders party thereto, BNP Paribas, as administrative agent, swing line agent and swing line lender, Citibank, N.A., as syndication agent and swing line lender, Bank of America, N.A., as syndication agent and swing line lender, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as syndication agent, and JPMorgan Chase Bank, N.A., as documentation agent.

 

“Extension Date” has the meaning specified in Section 2.13(a).

 

“Face Amount” means, with respect to any Bankers’ Acceptance, Drafts or BA Equivalent Note, the amount payable to the holder of such Bankers’ Acceptance, Draft or BA Equivalent Note on its maturity date.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to BNP Paribas on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letters” means the fee letters, if any, among TMCC, the Administrative Agent and any Arranger, entered into in connection with this Agreement.

 

“Foreign Lender” has the meaning set forth in Section 9.15(a)(i).

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

  

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“GAAP” means, (i) in the case of TMCC and TCPR, generally accepted accounting principles in the United States of America set forth in the opinions and pronouncements of the Statements and Interpretations of the Financial Accounting Standards Board, FASB Staff Positions, Accounting Research Bulletins and Accounting Principles Board Opinions of the American Institute of Certified Public Accountants or agencies with similar functions of comparable stature and authority within the U.S. accounting profession, which are applicable to the circumstances as of the date of determination, including the FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, (ii) in the case of TCCI, accounting principles generally accepted in Canada as set out in the Canadian Institute of Chartered Accountants Handbook - Accounting at the relevant time applied on a consistent basis, with any changes thereto or deviations therefrom that are made with the prior approval of TCCI’s independent auditors in accordance with promulgations of the Canadian Institute of Chartered Accountants, provided that, upon conversion by TCCI, as permitted by GAAP, to Canadian accounting standards for private enterprises or International Financial Reporting Standards, in each case, as set out in the Canadian Institute of Chartered Accountants Handbook - Accounting, such standards for private enterprises or International Financial Reporting Standards shall instead apply, (iii) in the case of TMFNL, International Financial Reporting Standards (“IFRS”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”), as adopted by the European Union and the statutory provisions of Part 9, Book 2 of the Netherlands Civil Code, (iv) in the case of TFSUK, IFRS and IFRIC interpretations, as adopted by the European Union and those parts of the Companies Act 2006 applicable to companies reporting under IFRS, and (v) in the case of any other Borrower to which United States generally accepted accounting principles are not applicable, accounting principles generally accepted in the country in which such Borrower is organized, as adopted, recommended or declared by the applicable accounting board or similar entity regularly determining such matters in such country, consistently applied.

 

“Governmental Authority” means any nation or government, any state, provincial or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, central bank or other entity exercising executive, legislative, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Indemnified Liabilities” has the meaning set forth in Section 9.5.

 

“Indemnitees” has the meaning set forth in Section 9.5.

 

“Interest Payment Date” means, (a) as to any Eurocurrency Rate Loan or Money Market Loan, the last day of each Interest Period applicable to such Loan and the Revolving Maturity Date applicable to the Lender of such Loan; provided, however, that if any Interest Period for a Eurocurrency Rate Loan or Money Market Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Committed Loan, any Canadian Prime Rate Loan or any Swing Line Loan, the last Business Day of each March, June, September and December and the Revolving Maturity Date applicable to the Lender of such Loan.

 

“Interest Period” means, (a) as to each Eurocurrency Rate Loan, the period commencing on the date such Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan and 

 

  

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ending on the date one, two, three or six months thereafter, as selected by the applicable Borrower in its Committed Loan Notice, (b) as to each Money Market LIBOR Loan, the period commencing on the date such Loan is disbursed and ending on the date that is such whole number of months thereafter as the applicable Borrower may elect in accordance with Section 2.3, (c) as to each Money Market Absolute Rate Loan, the period commencing on the date such Loan is disbursed and ending on the date that is such number of days thereafter (but not less than seven days) as the applicable Borrower may elect in accordance with Section 2.3 and (d) as to each Swing Line Loan, the period commencing on the date such Loan is disbursed and ending on the date that is such number of days thereafter as the applicable Borrower may elect in accordance with Section 2.16; provided that:

 

(i)           any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(ii)           any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

 

(iii)           no Interest Period for a Eurocurrency Rate Loan shall extend beyond the latest Revolving Maturity Date, and no Interest Period for Money Market Loans shall extend beyond the Revolving Maturity Date applicable to the Lender of such Loans.

 

“Invitation for Money Market Quotes” means an Invitation for Money Market Quotes substantially in the form of Exhibit F hereto.

 

“IRS” means the United States Internal Revenue Service.

 

“Laws” means, collectively, all federal, state and local statutes, executive orders, treaties, rules, guidelines, regulations, ordinances, codes and administrative authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders of any Governmental Authority.

 

“Lender” has the meaning specified in the introductory paragraph hereto and any other Person that shall have become a party hereto pursuant to an assignment made in accordance with Section 9.7, other than any Person that ceases to be a party hereto in accordance with the terms hereof pursuant to such assignment, and, as the context requires, includes each Swing Line Lender.

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the applicable Borrower and the Administrative Agent.

 

“LIBOR Auction” means a solicitation of Money Market Quotes setting forth Money Market Margins based on the Eurocurrency Rate pursuant to Section 2.3.

 

  

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“Loan” means an extension of credit by a Lender to a Borrower under Article II in the form of a Committed Loan, a Money Market Loan or a Swing Line Loan.

 

“Loan Documents” means this Agreement, each Note, and each Fee Letter.

 

“Mandatory Cost” means, with respect to any period, the percentage rate per annum determined in accordance with Schedule 1.1.

 

“Market Rate Spread” means the credit default swap mid-rate spread of TMCC interpolated from the applicable Spread Determination Date to the latest Commitment Termination Date (or, if the period from such Spread Determination Date to the latest Commitment Termination Date is less than one year, then the one-year credit default swap mid-rate spread of TMCC), in each case established on the most recent Spread Determination Date and based on the credit default swap mid-rate spreads specified by Markit Group Ltd., determined on the Spread Determination Date, subject to a minimum rate and a maximum rate equal to the Applicable Minimum/Maximum Rate.  If TMCC’s applicable credit default swap spreads, as specified by Markit Group Ltd. are unavailable on the Spread Determination Date, then the Market Rate Spread shall be TMCC’s interpolated credit default swap mid-rate spread, as reasonably determined on such Business Day by five reference banks selected by the Administrative Agent and TMCC, including BNPP Securities, CGMI, MLPFS and BTMU.  If the participant banks are unable to determine TMCC’s interpolated credit default swap mid-rate spread on the Spread Determination Date, the Market Rate Spread shall be based on the credit default swap spreads for TMCC most recently reported by Markit Group Ltd.

 

“Material Adverse Effect” means with respect to any Borrower, a material adverse change in the business, financial position or results of operations of such Borrower and its Consolidated Subsidiaries, considered as a whole.

 

“Money Market Absolute Rate” has the meaning set forth in Section 2.3(d)(ii).

 

“Money Market Absolute Rate Loan” means a loan denominated in US Dollars to be made by a Lender pursuant to an Absolute Rate Auction.

 

“Money Market Borrowing” means a borrowing consisting of simultaneous Money Market Loans of the same Type and, in the case of Money Market LIBOR Loans bearing interest calculated based on the Eurocurrency Rate, having the same Interest Period made by a Lender pursuant to Section 2.3.

 

“Money Market LIBOR Loan” means a loan denominated in US Dollars to be made by a Lender pursuant to a LIBOR Auction (including such a loan bearing interest at the Base Rate pursuant to Section 3.2).

 

“Money Market Loan” means a Money Market LIBOR Loan or a Money Market Absolute Rate Loan.

 

“Money Market Margin” has the meaning set forth in Section 2.3(d)(ii).

 

  

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“Money Market Quote” means an offer, substantially in the form of Exhibit G hereto, by a Lender to make a Money Market Loan in accordance with Section 2.3.

 

“Money Market Quote Request” means a Money Market Quote Request substantially in the form of Exhibit E hereto.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Multiemployer Plan” means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period.

 

“Note” or “Notes” means a promissory note or promissory notes made by a Borrower in favor of a Lender evidencing Loans made by such Lender to such Borrower, substantially in the form of Exhibit B.

 

“Obligations” means, with respect to any Borrower, all advances to, and debts, liabilities, obligations, covenants and duties of, such Borrower arising under any Loan Document or otherwise with respect to any Loan made to such Borrower, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against such Borrower of any proceeding under any Debtor Relief Laws naming such Borrower as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any jurisdiction other than the United States or Puerto Rico); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Other Taxes” means any and all present or future stamp or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document, excluding, however (i) such taxes imposed as a result of an assignment or participation (other than an assignment that occurs as a result of Borrower’s request pursuant to Section 9.16) and (ii) such taxes, charges and levies payable in respect of any Money Market Loan for any reason except a Regulatory Change occurring after the date that the Money Market Quote for such Money Market Loan was delivered.

 

  

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“Outstanding Amount” means (i) with respect to Committed Loans and Money Market Loans on any date, the aggregate outstanding principal amount or in the case of Bankers’ Acceptances, Drafts and BA Equivalent Notes, Face Amount thereof after giving effect to any borrowing and prepayments or repayments of Committed Loans and Money Market Loans, as the case may be, occurring on such date; and (ii) with respect to Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of such Swing Line Loans occurring on such date.

 

“Overnight Rate” means, for any day, (a) with respect to any amount denominated in US Dollars, the Federal Funds Rate, (b) with respect to any amount denominated in Canadian Dollars, an overnight rate determined by the Administrative Agent, the applicable Swing Line Agent or Canadian Sub-Agent, as the case may be, in accordance with banking industry rules on interbank compensation, and (c) with respect to any amount denominated in an Alternative Currency other than Canadian Dollars, the rate of interest per annum at which overnight deposits in the applicable Alternative Currency, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of BNP Paribas in the applicable offshore interbank market for such currency to major banks in such interbank market.

 

“Parent” means, with respect to any Lender, any Person controlling such Lender.

 

“Participant” has the meaning set forth in Section 9.7(d).

 

“PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA Group.

 

“Platform” has the meaning specified in Section 6.1.

 

“Pro Rata Share” means (a) with respect to the commitments of each Applicable Tranche Lender at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Tranche A Commitment or Tranche B Commitment of such Applicable Tranche Lender at such time and the denominator of which is the amount of the Aggregate Tranche A Commitments or Aggregate Tranche B Commitments, respectively, at such time; provided that if the commitment of each Lender to make Tranche A Loans or Tranche B Loans, as applicable, has been terminated pursuant to Section 7.1, then the Pro Rata Share of each Applicable Tranche Lender shall be determined based on the Pro Rata Share of such Lender immediately prior to such termination and after giving effect to any subsequent assignments 

 

  

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made pursuant to the terms hereof.  The initial Pro Rata Share of each Lender is set forth opposite the name of such Lender on Schedule 2.1 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, and (b) with respect to the aggregate Commitments of all Lenders at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of such Lender’s Commitment Cap and the denominator of which is the aggregate amount of all the Lenders’ Commitment Caps at such time.

 

“Public Debt Rating” means, as of any date, the rating that has been most recently announced by any of S&P or Moody’s, as the case may be, for any class of non-credit enhanced long-term senior unsecured debt issued by TMCC or, if any such rating agency shall have issued more than one such rating, the lowest such rating issued by such rating agency.  For purposes of the foregoing, (a) if only one of S&P and Moody’s shall have in effect a Public Debt Rating, the Applicable Maximum Rate and the Applicable Percentage shall be determined by reference to the available rating; (b) if neither of S&P or Moody’s shall have in effect a Public Debt Rating, the Applicable Maximum Rate and the Applicable Percentage will be set in accordance with Level 4 under the definitions of “Applicable Maximum Rate” and “Applicable Percentage”; (c) if both S&P and Moody’s have established ratings and those ratings shall fall within two different levels, the Applicable Maximum Rate and the Applicable Percentage shall be based upon the higher rating, unless the lower rating is more than one level below the higher rating, in which case the Applicable Maximum Rate and the Applicable Percentage shall be based upon the rating that is one level lower than the higher rating; (d) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (e) if S&P or Moody’s shall change the basis or system on which ratings are established, each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be.

 

“Public Lender” has the meaning specified in Section 6.1.

 

“Puerto Rico” means the Commonwealth of Puerto Rico.

 

“Puerto Rico Code” means the Puerto Rico Internal Revenue Code of 1994, as amended and any successor statute.

 

“Register” has the meaning set forth in Section 9.7(c).

 

“Regulation U” means Regulation U of the FRB, as in effect from time to time.

 

“Regulatory Change” shall mean, with respect to any Lender, the introduction of or any change in or in the interpretation of any Law, or such Lender’s compliance therewith.  For the avoidance of doubt, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, are 

 

  

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deemed to have been introduced or adopted after the date hereof, regardless of the date enacted, adopted, issued, promulgated or implemented.

 

“Request for Loans” means (a) with respect to a Borrowing, conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to a Money Market Borrowing, a Notice of Money Market Borrowing (as defined in Section 2.3(f)) and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, (a) with respect to matters related solely to the Tranche A Borrowers or to TCCI, respectively, as of any date of determination, Applicable Tranche Lenders having more than 50% of the Aggregate Commitments to such Borrower (or, in the case of the Tranche A Borrowers, all of the Tranche A Borrowers) or, if the commitment of each Lender to make Tranche A Loans or Tranche B Loans, as applicable, has been terminated pursuant to Section 7.1, Applicable Tranche Lenders holding in the aggregate more than 50% of the Total Outstandings applicable to Tranche A Borrowers or to TCCI, respectively (with the aggregate amount of each Lender’s risk participation and funded participation in Swing Line Loans being deemed “held” by such Lender for purposes of this definition); provided that the Commitment of, and the portion of the Total Outstandings applicable to a Borrower held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders and (b) in all other cases, Lenders having more than 50% of the aggregate amount of all the Lenders’ Commitment Caps at such time or, to the extent the Commitments have been terminated, more than 50% of the Total Outstandings of all Loans, provided that the Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer or assistant treasurer or any other officer or representative of (i) the applicable Borrower, authorized by the board of directors (or equivalent governing body) of the applicable Borrower or (ii) to the extent a Borrower’s Representative is permitted pursuant to this Agreement to act on behalf of a Borrower, the applicable Borrowers’ Representative, authorized by the board of directors (or equivalent governing body) of the applicable Borrowers’ Representative in respect of the applicable Borrower, in each case as set forth in a written notice from such Borrower or such Borrowers’ Representative on behalf of such Borrower to the Administrative Agent.  The Administrative Agent may conclusively rely on each such notice unless and until a subsequent writing shall be delivered by a Borrower or Borrowers’ Representative on behalf of a Borrower to the Administrative Agent that identifies the prior writing that is to be superseded and stating that it is to be so superseded.  Any document delivered hereunder that is signed by a Responsible Officer of a Borrower or a Responsible Officer of a Borrowers’ Representative on behalf of a Borrower shall be conclusively presumed to have been authorized by all necessary corporate action on the part of such Borrower or such Borrowers’ Representative on behalf of such Borrower.

 

“Revaluation Date” means each of the following:  (i) each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency, (ii) each date of a continuation of a Eurocurrency Rate Loan denominated in an Alternative Currency pursuant to Section 2.2, 

 

  

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and (iii) such additional dates as the Administrative Agent shall determine or the Required Lenders shall request.

 

“Revolving Maturity Date” means the later of (a) February 26, 2018, and (b) if maturity is extended upon the request of the Borrowers pursuant to Section 2.13(b), such extended revolving maturity date as determined pursuant to such Section; provided, however, that the Revolving Maturity Date of any Lender that is a non-Consenting Lender to any requested extension pursuant to Section 2.13(b) shall be the Revolving Maturity Date in effect immediately prior to the applicable Extension Date (as such term is defined in Section 2.13(a)) for all purposes of this Agreement.

 

“S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.

 

“Same Day Funds” means (a) with respect to disbursements and payments in US Dollars, immediately available funds, and (b) with respect to disbursements and payments in an Alternative Currency, same day or other funds as may be determined by the Administrative Agent to be customary in the place of disbursement or payment for the settlement of international banking transactions in the relevant Alternative Currency.

 

“Schedule I Banks” shall mean, at any time, the Lenders that are listed in Schedule I to the Bank Act (Canada) at such time.

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Significant Subsidiary” means any Subsidiary which would meet the definition of “Significant Subsidiary” contained in Regulation S-X (or similar successor provision) of the Securities and Exchange Commission.

 

“Special Notice Currency” means at any time an Alternative Currency, other than the currency of a country that is a member of the Organization for Economic Cooperation and Development at such time located in North America or Europe.

 

“Spot Rate” for a currency means the rate determined by the Administrative Agent to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided that the Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative Agent if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency.

 

“Spread Determination Date” means the Business Day that is two Business Days prior to the day of delivery of the request to make, convert or continue, as applicable, each Loan (and if such Loan is a Eurocurrency Rate Loan with an Interest Period longer than three months, the Market Rate Spread shall be reset to the Market Rate Spread as reported on the Business Day that is two Business Days prior to the day that is three months after the later of (i) the day on 

 

  

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which such Eurocurrency Rate Loan was made, converted or continued and (ii) the last day on which the Market Rate Spread was reset).

 

“Sterling” and “£” mean the lawful currency of the United Kingdom.

 

“Sub-Agents” means the Canadian Sub-Agent and each Swing Line Agent.

 

“Subsidiary” means, as to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of a Borrower.

 

“Swing Line Agent” means each of (a) in the case of Swing Line Loans funded in US Dollars, BNP Paribas, (b) in the case of Swing Line Loans funded in Canadian Dollars, BNP Paribas and (c) in the case of Swing Line Loans funded in Euro, Sterling or any other Alternative Currency, BNP Paribas London.

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.16.

 

“Swing Line Commitment” means, as to each Swing Line Lender, its obligation to make Swing Line Loans in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.1 as its “Swing Line Commitment” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Swing Line Lenders” means each of the Lenders that has a Swing Line Commitment on Schedule 2.1 hereto, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.16(a).

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.16(b), which, if in writing, shall be substantially in the form of Exhibit A-2.

 

“Swing Line Rate” means, (a) in respect of Swing Line Loans made in US Dollars or any Alternate Currency other than Canadian Dollars, for any Interest Period, the sum of (i) the rate per annum determined by the applicable Swing Line Agent as the rate of interest (rounded upward to the next 1/100th of 1%) at which deposits in the relevant currency for delivery on the first day of such Swing Line Loan in Same Day Funds in the approximate amount of the Swing Line Loan being made by such Swing Line Agent (or its affiliate) and with a term equivalent to such Interest Period would be offered by BNP Paribas London to major banks in the London or other offshore interbank market for such currency at their request at approximately 11:00 A.M. (London time) on the first day of such Swing Line Loan, (ii) the Applicable Rate and (iii) the applicable Mandatory Cost and (b) in the case of Swing Line Loans made in Canadian Dollars, the sum of (i) the Canadian Prime Rate and (ii) the Applicable Rate.

 

  

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“Swing Line Sublimit” means an amount equal to the least of (a) US$958,250,000 , (b) the aggregate Swing Line Commitments of the Swing Line Lenders and (c) the Aggregate Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

“TARGET2 Day” means any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) System (or, if such payment system ceases to be operative, such other payment system (if any) determined by the Administrative Agent to be a suitable replacement) is open for the settlement of payments in Euro.

 

“Taxes” means, with respect to any payment by a Borrower under this Agreement or any other Loan Document, any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities with respect thereto (other than Other Taxes), excluding, (i) in the case of the Administrative Agent and each Lender, taxes imposed on or measured by its overall net income, and franchise and similar taxes (including branch profits taxes and backup withholding of such taxes) imposed on it, by the jurisdiction (or any political subdivision thereof) under the Laws of which the Administrative Agent or such Lender, as the case may be, is organized or where the Administrative Agent’s Office or a Lender’s Lending Office is located or any other jurisdiction arising solely as a result of such recipient engaging in a trade or business in such jurisdiction for tax purposes and (ii) any (1) United States, the Netherlands or Puerto Rico withholding tax imposed on payments by the Tranche A Borrowers under this Agreement or any other Loan Document or (2) Canadian withholding tax imposed on payments by TCCI, under this Agreement or any other Loan Document to a Tranche B Lender that is subject to such withholding tax, in the case of either (1) or (2), (x) with respect to payments on a Money Market Loan, on the date that such Lender delivers a Money Market Quote for such Money Market Loan (or designates a new Lending Office) and (y) with respect to all other payments, on the date such Lender becomes a party to this Agreement (or designates a new Lending Office).

 

“TMC Consolidated Subsidiary” means, at any date, a Subsidiary or other entity the accounts of which would be consolidated with those of Toyota Motor Corporation in its consolidated financial statements if such statements were prepared as of such date.

 

“Total Outstandings” means (i) the aggregate Outstanding Amount of all Loans, (ii) when used in relation to the Tranche A Borrowers, the Outstanding Amount of all Loans made to the Tranche A Borrowers and (iii) when used in relation to TCCI, the Outstanding Amount of all Loans made to TCCI.

 

“Tranche A Availability Period” means, with respect to any Lender, the period from and including the Closing Date to the earliest of (a) the Revolving Maturity Date applicable to such Lender, (b) the date of termination of the Aggregate Tranche A Commitments pursuant to Section 2.5, and (c) the date of termination of the commitment of each Tranche A Lender to make Loans pursuant to Section 7.1.

 

“Tranche A Borrowers” means TMCC, TMFNL, TFSUK, TLG, TCPR and TKG.

 

  

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“Tranche A Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the Tranche A Borrowers pursuant to Section 2.1(a) and (b) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.1 as its “Tranche A Commitment” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement; provided that (a) the Tranche A Commitments available to TKG shall not exceed US$383,300,000  in the aggregate for all Lenders, (b) the Tranche A Commitments available to TCPR shall not exceed US$766,600,000  in the aggregate for all Lenders and (c)  the Tranche A Commitments available to TLG shall not exceed US$383,300,000  in the aggregate for all Lenders.

 

“Tranche A Facility” means the aggregate of the Tranche A Commitments.

 

“Tranche A Lender” means each Lender that has a Tranche A Commitment on Schedule 2.1 or any Lender to which a portion of the Tranche A Commitment hereunder has been assigned pursuant to an Assignment and Assumption.

 

“Tranche A Loan” means an extension of credit by a Lender to a Tranche A Borrower under Article II in the form of a Committed Loan or a Money Market Loan.  Tranche A Loans shall be denominated in US Dollars or any Alternative Currency.

 

“Tranche B Availability Period” means, with respect to any Lender, the period from and including the Closing Date to the earliest of (a) the Revolving Maturity Date applicable to such Lender, (b) the date of termination of the Aggregate Tranche B Commitments pursuant to Section 2.5, and (c) the date of termination of the commitment of each Tranche B Lender to make Loans pursuant to Section 7.1.

 

“Tranche B Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to TCCI pursuant to Section 2.1(b) and (b) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.1 as its “Tranche B Commitment” or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Tranche B Facility” means the aggregate of the Tranche B Commitments.

 

“Tranche B Lender” means each Lender that has a Tranche B Commitment on Schedule 2.1 or any Lender to which a portion of the Tranche B Commitment hereunder has been assigned pursuant to an Assignment and Assumption.

 

“Tranche B Loan” means an extension of credit by a Lender to TCCI under Article II and shall, unless the context otherwise requires, be deemed to include Drafts accepted or purchased by any such Lender, and BA Equivalent Notes issued to such Lender in exchange for Drafts.  Tranche B Loans may be denominated in Canadian Dollars (as Canadian Prime Rate Loans, Bankers’ Acceptances, Drafts or BA Equivalent Notes), US Dollars (as Base Rate Loans or Eurocurrency Rate Loans) or any Alternative Currency (as Eurocurrency Rate Loans).

 

  

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“Type” means, with respect to a Loan, its character as a Base Rate Loan, a Canadian Prime Rate Loan, a Eurocurrency Rate Loan, a Money Market LIBOR Loan or a Money Market Absolute Rate Loan.

 

“UK CTA” means the United Kingdom Corporation Tax Act 2009.

 

“UK ITA” means the United Kingdom Income Tax Act 2007.

 

“UK Qualifying Lender” means (a) a Lender which is beneficially entitled to interest payable to that Lender in respect of a Loan to TFSUK and is (i) a Lender: (1) which is a bank (as defined for the purpose of section 879 UK ITA) making an advance to TFSUK under this Agreement; or (2) in respect of an advance made under this Agreement to TFSUK by a person that was a bank (as defined for the purpose of section 879 UK ITA) at the time the advance was made, and which, with respect to (1) and (2) above, is within the charge to United Kingdom corporation tax as regards any payment of interest made in respect of that advance or (in the case of (1) above), which is a bank (as so designated) that would be within the charge to United Kingdom corporation tax as regards any payment of interest made in respect of that advance apart from section 18A of the UK CTA; or (ii) a Lender which is: (1) a company resident in the United Kingdom for United Kingdom tax purposes or (2) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment which brings into account interest payable in respect of that Loan in computing its chargeable profits (within the meaning given by section 19 of the UK CTA); or (iii) a UK Treaty Lender or (b) a US LLC Lender.

 

“UK Treaty Lender” means a Lender which:

 

	
(i)

	
is treated as a resident of a jurisdiction having a double taxation agreement with the United Kingdom which makes provision for full exemption from Tax imposed by the United Kingdom on interest; and

 

	
(ii)

	
does not carry on business in the United Kingdom through a permanent establishment with which that Lender’s participation in respect of a Loan to TFSUK is effectively connected; and

 

	
(iii)

	
if a US Lender, is fully entitled to the benefits of the UK/US Treaty (or if not so entitled, would have been so entitled but for its failure to be so fully entitled being attributable to (x) the status of or any action or omission of TFSUK or any affiliate thereof or to any relationship between the Lender and TFSUK or any affiliate thereof or (y) any steps taken or to be taken pursuant to Section 9.16),

 

provided that “UK Treaty Lender” shall mean any Lender in respect of a Loan to TFSUK, if such Lender becomes a Lender when an Event of Default has occurred and is continuing.

 

“UK/US Treaty” means the convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains which is, on the date the relevant payment of interest on a Loan falls due, in force.

 

  

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“Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by which (i) the value of all benefit liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA.

 

“United States” and “U.S.” means the United States of America, including the States and the District of Columbia, but excluding its territories and possessions.

 

“Unused Tranche A Commitment” means, with respect to any Tranche A Lender at any time (a) such Lender’s Tranche A Commitment at such time minus (b) the sum of (i) the aggregate principal amount of all Tranche A Loans made by such Lender and outstanding at such time plus (ii) such Lender’s Pro Rata Share of the aggregate principal amount of all Money Market Loans made to the Tranche A Borrowers pursuant to Section 2.3 and outstanding at such time plus (iii) such Lender’s Pro Rata Share of the aggregate principal amount of all Swing Line Loans made to the Tranche A Borrowers pursuant to Section 2.16 and outstanding at such time plus (iv) in the case of a Tranche A Lender that is (or has an Affiliate that is) a Tranche B Lender, such Tranche B Lender’s Pro Rata Share of the Total Outstandings applicable to TCCI.

 

“US Dollar” and “US$” mean lawful money of the United States.

 

“US Lender” means a Lender which is treated as resident (for the purposes of the UK/US Treaty) in the United States of America.

 

“US LLC Lender” means a Lender in respect of a Loan to TFSUK which is a US limited liability company that is fiscally transparent under the laws of the United States and where each ultimate recipient of the interest payable to that Lender would be a UK Treaty Lender were that ultimate recipient a Lender in respect of that Loan.

 

           Section  1.2 Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)           The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b)           (i)           The words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

 

(ii)           Article, Section, Exhibit and Schedule references are to the Loan Document in which such reference appears.

 

(iii)          The term “including” is by way of example and not limitation.

 

  

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(iv)          The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

 

(c)           In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”

 

(d)           Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

Section  1.3 Accounting Terms.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements.

 

           Section  1.4 References to Agreements and Laws.  Unless otherwise expressly provided herein, (a) references to Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto; and (b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law.

 

           Section  1.5 Exchange Rates; Currency Equivalents.  (a)  The Administrative Agent shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Loan and Outstanding Amounts denominated in Alternative Currencies.  Such Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any amounts between the applicable currencies until the next Revaluation Date to occur.  Except for purposes of financial statements delivered by the Borrowers hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency (other than US Dollars) for purposes of the Loan Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent.

 

(b)           Wherever in this Agreement in connection with a Committed Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan, an amount, such as a required minimum or multiple amount, is expressed in US Dollars, but such Committed Borrowing or Eurocurrency Rate Loan is denominated in an Alternative Currency, such amount shall be the relevant Alternative Currency Equivalent of such US Dollar amount (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent.

 

           Section  1.6 Additional Alternative Currencies.  (a)  The Borrowers may from time to time request that Eurocurrency Rate Loans be made in a currency other than those specifically listed in the definition of “Alternative Currency;” provided that such requested currency is a 

 

  

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lawful currency (other than US Dollars) that is readily available and freely transferable and convertible into US Dollars.  In the case of any such request with respect to the making of Eurocurrency Rate Loans, such request shall be subject to the approval of the Administrative Agent and the Applicable Tranche Lenders.

 

(b)           Any such request shall be made to the Administrative Agent not later than 11:00 a.m., 10 Business Days prior to the date of the desired Committed Loan (or such other time or date as may be agreed by the Administrative Agent in its sole discretion).  In the case of any such request pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly notify each Applicable Tranche Lender thereof.  Each such Lender (in the case of any such request pertaining to Eurocurrency Rate Loans) shall notify the Administrative Agent, not later than 11:00 a.m., seven Business Days after receipt of such request whether it consents, in its sole discretion, to the making of Eurocurrency Rate Loans in such requested currency.

 

(c)           Any failure by an Applicable Tranche Lender to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by such Lender to permit Eurocurrency Rate Loans to be made in such requested currency for the applicable tranche.  If the Administrative Agent and all the Applicable Tranche Lenders consent to making Eurocurrency Rate Loans in such requested currency under the applicable tranche, the Administrative Agent shall so notify the Borrowers and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Committed Borrowings of Eurocurrency Rate Loans under such tranche.  If the Administrative Agent shall fail to obtain consent to any request for an additional currency under this Section 1.6, the Administrative Agent shall promptly so notify the Borrowers.

 

           Section 1.7  Change of Currency.  (a)  Each obligation of the Borrowers to make a payment denominated in the national currency unit of any member state of the European Union that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such member state, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any convention or practice in the London interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which such member state adopts the Euro as its lawful currency; provided that if any Committed Borrowing in the currency of such member state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Committed Borrowing, at the end of the then current Interest Period.

 

(b)           Each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect the adoption of the Euro by any member state of the European Union and any relevant market conventions or practices relating to the Euro.

 

(c)           Each provision of this Agreement also shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect a change in currency of any other country and any relevant market conventions or practices relating to the change in currency.

 

  

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Section 1.8  Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Pacific time (daylight or standard, as applicable).

 

ARTICLE II

 

THE CREDITS

 

           Section 2.1 Committed Loans.  (a)  Subject to the terms and conditions set forth herein, each Tranche A Lender severally agrees to make loans in US Dollars or in one or more Alternative Currencies (each such loan, a “Committed Tranche A Loan”) to the Tranche A Borrowers from time to time, on any Business Day during the Tranche A Availability Period of such Lender, in an amount not to exceed the amount of such Lender’s Unused Tranche A Commitment at such time.  Within the limits of each Lender’s Unused Tranche A Commitment, and subject to the other terms and conditions hereof, the Tranche A Borrowers may borrow under this Section 2.1(a), prepay under Section 2.4, and reborrow under this Section 2.1(a).  Committed Tranche A Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

 

(b)           Subject to the terms and conditions set forth herein, each Tranche B Lender severally agrees to make loans to TCCI in US Dollars or in one or more Alternative Currencies, and (i) in the case of a Tranche B Lender willing and able to accept Drafts, to create acceptances (“Bankers’ Acceptances”) by accepting Drafts and to purchase such Bankers’ Acceptances in accordance with Section 2.15(a) and (ii) in the case of a Tranche B Lender which is unwilling or unable to accept Drafts, to purchase completed Drafts, which will not be accepted by the Tranche B Lender or any other Tranche B Lender in accordance with Section 2.15 from time to time, on any Business Day during the Tranche B Availability Period of such Tranche B Lender, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Tranche B Commitment; provided, however, that after giving effect to any Committed Borrowing made by the Tranche B Lenders, (i) the Total Outstandings applicable to TCCI shall not exceed the Aggregate Tranche B Commitments, and (ii) the aggregate Outstanding Amount of the Committed Tranche B Loans of any Tranche B Lender plus such Lender’s ratable share of the Outstanding Amount of all Swing Line Loans made to TCCI shall not exceed such Lender’s Tranche B Commitment.  Within the limits of each Lender’s Tranche B Commitment, and subject to the other terms and conditions hereof, TCCI may borrow under this Section 2.1(b), prepay under Section 2.4, and reborrow under this Section 2.1(b).  Committed Tranche B Loans may be Base Rate Loans, Eurocurrency Rate Loans, Canadian Prime Rate Loans, Bankers’ Acceptances or BA Equivalent Notes, as further provided herein.

 

(c)           After giving effect to Committed Loans made pursuant to this Section 2.1, the aggregate Outstanding Amount of all Loans (other than Money Market Loans) made by such Lender or its Affiliates shall not exceed such Lender’s Commitment Cap.

 

Section 2.2 Borrowings, Conversions and Continuations of Committed Loans.

 

(a)           Each Committed Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of Eurocurrency Rate Loans shall be made upon the applicable Borrower’s irrevocable notice to the Administrative Agent (or Canadian Sub-Agent, 

 

  

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in the case of Tranche B), which may be given by telephone.  Each such notice must be received by the Administrative Agent or the Canadian Sub-Agent, as applicable, not later than 10:00 a.m. (Pacific time) in the case of Tranche A Loans and 9:00 a.m. (Pacific time) in the case of Tranche B Loans, (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurocurrency Rate Loans denominated in US Dollars or of any conversion of Base Rate Loans to Eurocurrency Rate Loans denominated in US Dollars, (ii) four Business Days (or five Business Days in the case of a Special Notice Currency) prior to the requested date of any Borrowing or continuation of Eurocurrency Rate Loans denominated in Alternative Currencies, (iii) on the requested date of any Borrowing of, or conversion of Eurocurrency Rate Loans to, Base Rate Committed Loans, (iv) on the requested date of any Borrowing of Canadian Prime Rate Loans and (v) as set forth in Section 2.15(a) for Bankers’ Acceptances or BA Equivalent Notes.  Each telephonic notice by a Borrower pursuant to this Section 2.2(a) must be confirmed promptly by delivery to the Administrative Agent or Canadian Sub-Agent, as applicable, of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer or any other Person designated in writing by a Responsible Officer of such Borrower to the Administrative Agent or Canadian Sub-Agent, as applicable.  Except as otherwise provided in Section 2.15(a), each Borrowing of, conversion to or continuation of Loans shall be (x) for Loans other than Tranche B Loans denominated in Canadian Dollars, in a principal amount of US$50,000,000 or a whole multiple of US$1,000,000 in excess thereof (or the Dollar Equivalent thereof); provided that, in the case of TMFNL, such amount shall not be less than the Dollar Equivalent of EUR100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht) or (y) for Tranche B Loans denominated in Canadian Dollars, in a principal amount of CDN$5,000,000 or integral multiples of CDN$1,000,000 in excess thereof.  Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the applicable Borrower is requesting a Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of Eurocurrency Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted, (v) if applicable, the duration of the Interest Period with respect thereto and (vi) the currency of the Committed Loans to be borrowed.  If any Borrower fails to specify a currency in a Committed Loan Notice requesting a Borrowing, then the Committed Loans so requested shall be made in US Dollars.  If any Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or if such Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Committed Loans shall be made as, or converted to, (x) in the case of Loans denominated in Canadian Dollars, Canadian Prime Rate Loans or (y) in the case of Loans denominated in a currency other than Canadian Dollars, Base Rate Loans in an amount being the Dollar Equivalent of such Loans; provided, however, that in the case of a failure to timely request a continuation of Committed Loans denominated in an Alternative Currency other than Canadian Dollars, such Loans shall be continued as Eurocurrency Rate Loans in their original currency with an Interest Period of one month.  Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurocurrency Rate Loans.  If the applicable Borrower requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be 

 

  

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deemed to have specified an Interest Period of one month.  No Committed Loan may be converted into or continued as a Committed Loan denominated in a different currency, but instead must be prepaid in the original currency of such Committed Loan and reborrowed in the other currency.

 

(b)           Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each appropriate Lender of the contents thereof and the amount (and currency) of its Pro Rata Share of the applicable Committed Loans, and if no timely notice of a conversion or continuation is provided by the applicable Borrower, the Administrative Agent shall notify each appropriate Lender of the details of any automatic conversion to Base Rate Loans or continuation of Committed Loans denominated in a currency other than US Dollars, in each case as described in the preceding subsection.  In the case of a Committed Borrowing, each Tranche A Lender shall make the amount of its Committed Loan available to the Administrative Agent, and each Tranche B Lender shall make the amount of its Committed Loan available to the Canadian Sub-Agent, in Same Day Funds at the Administrative Agent’s Office for the applicable currency or the office of the Canadian Sub-Agent located in Montreal, Canada, as the case may be, not later than 1:00 p.m. on the Business Day specified, in the case of any Committed Loan denominated in US Dollars, and not later than the Applicable Time specified by the Administrative Agent in the case of any Committed Loan in an Alternative Currency, in the applicable Committed Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.2, the Administrative Agent or the Canadian Sub-Agent, as the case may be, shall make all funds so received available to the applicable Borrower in like funds as received by the Administrative Agent or the Canadian Sub-Agent either by (i) crediting the account of such Borrower on the books of BNP Paribas with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent or the Canadian Sub-Agent by such Borrower.

 

(c)           Except as otherwise provided herein, a Eurocurrency Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurocurrency Rate Loan.  During the existence of an Event of Default, no Loans may be requested as, converted to or continued as Eurocurrency Rate Loans (whether in US Dollars or any Alternative Currency) without the consent of the applicable Required Lenders, and the Required Lenders may demand that any or all of the then outstanding Eurocurrency Rate Loans denominated in an Alternative Currency be prepaid, or redenominated into US Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current Interest Period with respect thereto.

 

(d)           The Administrative Agent shall promptly notify the applicable Borrower and the appropriate Lenders of the interest rate applicable to any Interest Period for Eurocurrency Rate Loans upon determination of such interest rate.  The determination of the Eurocurrency Rate by the Administrative Agent shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the applicable Borrower and the appropriate Lenders of any change in BNP Paribas’s prime rate used in determining the Base Rate promptly following the public announcement of such change.  At any time that Canadian Prime Rate Loans are outstanding, the Canadian Sub-Agent shall notify TCCI and the Tranche B Lenders of any change in the Canadian Prime Rate promptly following the public announcement of a change in a Canadian Reference Bank’s “prime rate” by any Canadian Reference Bank.

 

  

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(e)           After giving effect to all Committed Borrowings, all conversions of Committed Loans from one Type to the other, and all continuations of Committed Loans as the same Type, there shall not be more than fifteen (15) Interest Periods in effect with respect to Committed Loans.

 

Section 2.3 Money Market Loans.

 

(a)           In addition to Committed Loans pursuant to Section 2.1, the Tranche A Borrowers may, as set forth in this Section, request the appropriate Lenders during the Tranche A Availability Period of such Lenders to make offers to make Money Market Loans in US Dollars to such Borrower; provided, however, that after giving effect to any Money Market Borrowing the Total Outstandings applicable to the Tranche A Borrowers shall not exceed the Aggregate Tranche A Commitments.  The Lenders may, but shall have no obligation to, make such offers and the applicable Borrower may, but shall have no obligation to, accept any such offers in the manner set forth in this Section.

 

(b)           When any Tranche A Borrower wishes to request offers to make Money Market Loans under this Section, it shall transmit to the Administrative Agent by facsimile transmission a Money Market Quote Request, appropriately completed and signed by a Responsible Officer or any other Person designated in writing by a Responsible Officer of such Borrower to the Administrative Agent, so as to be received no later than 9:00 a.m. on (x) the fourth Business Day prior to the date of Borrowing proposed therein, in the case of a LIBOR Auction or (y) the Business Day next preceding the date of Borrowing proposed therein, in the case of an Absolute Rate Auction (or, in either case, such other time or date as such Borrower and the Administrative Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective) specifying: (i) the proposed date of Borrowing, which shall be a Business Day, (ii) the aggregate amount of such Borrowing, which shall be US$50,000,000 or a larger multiple of US$5,000,000 (provided that, in the case of TMFNL, the aggregate amount of such Borrowing shall not be less than the Dollar Equivalent of EUR100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht)), (iii) the duration of the Interest Period applicable thereto, subject to the provisions of the definition of Interest Period, and (iv) whether the Money Market Quotes requested are to set forth a Money Market Margin or a Money Market Absolute Rate.  The applicable Borrower may request offers to make Money Market Loans for more than one Interest Period in a single Money Market Quote Request.  No Money Market Quote Request shall be given within five Business Days (or such other number of days as such Borrower and the Administrative Agent may agree) of any other Money Market Quote Request.

 

(c)           Promptly upon receipt of a Money Market Quote Request, the Administrative Agent shall send to the appropriate Lenders by facsimile transmission an Invitation for Money Market Quotes, which shall constitute an invitation by the applicable Tranche A Borrower to each Lender to submit Money Market Quotes offering to make the Money Market Loans to which such Money Market Quote Request relates in accordance with this Section.

 

  

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(d)           (i)           Each Tranche A Lender may submit a Money Market Quote containing an offer or offers to make Money Market Loans in response to any Invitation for Money Market Quotes made by a Tranche A Borrower.  Each Money Market Quote must comply with the requirements of this subsection (d) and must be submitted to the Administrative Agent by facsimile transmission at the Administrative Agent’s Office not later than (x) 1:00 p.m. on the fourth Business Day prior to the proposed date of Borrowing, in the case of a LIBOR Auction or (y) 9:00 a.m. on the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as such Tranche A Borrower, and the Administrative Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective); provided that Money Market Quotes submitted by the Administrative Agent (or any Affiliate of the Administrative Agent) in the capacity of a Lender may be submitted, and may only be submitted, if the Administrative Agent or such Affiliate notifies such Borrower of the terms of the offer or offers contained therein not later than 15 minutes prior to the deadline for the other Lenders.  Subject to Articles IV and VII, any Money Market Quote so made shall be irrevocable except with the written consent of the Administrative Agent given on the instructions of such Tranche A Borrower.

 

(ii)           Each Money Market Quote shall specify (A) the proposed date of Borrowing; (B) the principal amount of the Money Market Loan for which each such offer is being made, which principal amount (w) may be greater than or less than the Commitment of the quoting Lender, (x) must be US$5,000,000 or a larger multiple of US$l,000,000, (y) may not exceed the principal amount of Money Market Loans for which offers were requested and (z) may be subject to an aggregate limitation as to the principal amount of Money Market Loans for which offers being made by such quoting Lender may be accepted; (C) in the case of a LIBOR Auction, the margin above or below the applicable Eurocurrency Rate (the “Money Market Margin”) offered for each such Money Market Loan, expressed as a percentage (specified to the nearest 1/10,000th of 1%) to be added to or subtracted from such base rate; (D) in the case of an Absolute Rate Auction, the rate of interest per annum (specified to the nearest 1/10,000th of 1%) (the “Money Market Absolute Rate”) offered for each such Money Market Loan; and (E) the identity of the quoting Lender.  A Money Market Quote may set forth up to five separate offers by the quoting Lender with respect to each Interest Period specified in the related Invitation for Money Market Quotes.

 

(iii)           Any Money Market Quote shall be disregarded if it (A) is not substantially in conformity with the definition thereof or does not specify all of the information required by subsection (d)(ii); (B) contains qualifying, conditional or similar language; (C) proposes terms other than or in addition to those set forth in the applicable Invitation for Money Market Quotes; or (D) arrives after the time set forth in subsection (d)(i).

 

(e)           The Administrative Agent shall promptly notify the applicable Tranche A Borrower of the terms (i) of any Money Market Quote submitted by a Lender that is in accordance with subsection (d) and (ii) of any Money Market Quote that amends, modifies or is otherwise inconsistent with a previous Money Market Quote submitted by such Lender with 

 

  

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respect to the same Money Market Quote Request.  Any such subsequent Money Market Quote shall be disregarded by the Administrative Agent unless such subsequent Money Market Quote is submitted solely to correct a manifest error in such former Money Market Quote.  The Administrative Agent’s notice to the applicable Borrower shall specify (i) the aggregate principal amount of Money Market Loans for which offers have been received for each Interest Period specified in the related Money Market Quote Request, (ii) the respective principal amounts and Money Market Margins or Money Market Absolute Rates, as the case may be, so offered and (iii) if applicable, limitations on the aggregate principal amount of Money Market Loans for which offers in any single Money Market Quote may be accepted.

 

(f)           Not later than 10:00 a.m. on the third Business Day prior to the proposed date of Borrowing of Money Market LIBOR Loans or 9:00 a.m. on the Business Day of the proposed date of Borrowing of Money Market Absolute Rate Loans (or such other time or date as the applicable Borrower and the Administrative Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Money Market Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective), the applicable Tranche A Borrower shall notify the Administrative Agent of its acceptance or non-acceptance of the offers so notified to it pursuant to subsection (e).  In the case of acceptance, such notice (a “Notice of Money Market Borrowing”) shall specify the aggregate principal amount of offers for each Interest Period that are accepted.  The applicable Borrower may accept any Money Market Quote in whole or in part; provided that (i) the aggregate principal amount of each Money Market Borrowing may not exceed the applicable amount set forth in the related Money Market Quote Request; (ii) the principal amount of each Money Market Borrowing must be US$50,000,000 or a larger multiple of US$5,000,000 (provided that, in the case of TMFNL, the aggregate amount of such Borrowing shall not be less than the Dollar Equivalent of EUR 100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht)); and (iii) acceptance of offers may only be made on the basis of ascending Money Market Margins or Money Market Absolute Rates, as the case may be.

 

(g)           If offers are made by two or more Lenders with the same Money Market Margins or Money Market Absolute Rates, as the case may be, for a greater aggregate principal amount than the amount in respect of which such offers are accepted for the related Interest Period, the principal amount of Money Market Loans in respect of which such offers are accepted shall be allocated by the Administrative Agent among such Lenders as nearly as possible (in multiples of US$1,000,000, as the Administrative Agent may deem appropriate) in proportion to the aggregate principal amounts of such offers.  Determinations by the Administrative Agent of the amounts of Money Market Loans shall be conclusive in the absence of manifest error.

 

Section 2.4 Prepayments.

 

(a)           The Tranche A Borrowers may, upon notice to the Administrative Agent, and TCCI may, upon notice to the Canadian Sub-Agent, at any time or from time to time voluntarily prepay Committed Loans (other than Bankers’ Acceptances, Drafts and BA Equivalent Notes) or Money Market Loans made to it bearing interest at the Base Rate in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent or the Canadian Sub-Agent, as applicable, not later than (x) in the case of Tranche A Loans, 

 

  

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10:00 a.m. (Pacific time), (A) two Business Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in US Dollars, (B) three Business Days (or four, in the case of prepayment of Loans denominated in Special Notice Currencies) prior to any date of prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies, and (C) on the date of prepayment of Base Rate Committed Loans or Money Market Loans bearing interest at the Base Rate pursuant to Section 3.2 or (y) in the case of Tranche B Loans, 9:00 a.m. (Pacific time) (A) two Business Days prior to the date of any date of prepayment of Eurocurrency Rate Loans and (B) on the date of prepayment of Canadian Prime Rate Loans; (ii) any prepayment of Loans other than Tranche B Loans denominated in Canadian Dollars shall be in a principal amount of US$50,000,000 or a whole multiple of US$1,000,000 in excess thereof; and (iii) any prepayment of Tranche B Loans denominated in Canadian Dollars shall be in a principal amount of CDN$5,000,000 or a whole multiple of CDN$500,000 in excess thereof.  Except as provided in the preceding sentence, a Borrower may not prepay all or any portion of the principal amount of any Money Market Loan made to it prior to the last day of the Interest Period therefor.  Each such notice shall specify the date and amount of such prepayment, whether the Loans to be prepaid are Committed Loans or Money Market Loans, and the Type(s) of Loans to be prepaid.  The Administrative Agent or the Canadian Sub-Agent, as the case may be, will promptly notify each appropriate Lender of its receipt of each such notice and the contents thereof with respect to Committed Loans, and of the amount of such Lender’s Pro Rata Share of such prepayment of such Committed Loans.  The Administrative Agent will promptly notify each Lender that has made a Money Market Loan that is to be prepaid of the receipt by the Administrative Agent of each notice and the contents thereof with respect to such Money Market Loan and the contents thereof and of the amount of such prepayment of such Money Market Loan.  If such notice is given by a Borrower, such Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of a Eurocurrency Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.5.  Each such prepayment of Committed Loans shall be applied to the Committed Loans of the appropriate Lenders in accordance with their respective Pro Rata Shares.  Each such prepayment of Money Market Loans shall be applied ratably to the Money Market Loans of the Lenders that made such Loans.

 

(b)           (i)  If for any reason the Total Outstandings applicable to the Tranche A Borrowers at any time exceed the Aggregate Tranche A Commitments then in effect, then the Tranche A Borrowers shall immediately prepay Loans in an aggregate amount equal to such excess, (ii) if for any reason the Total Outstandings applicable to TKG at any time exceed US$383,300,000, TKG shall immediately prepay Loans in an aggregate amount equal to such excess, (iii) if for any reason the Total Outstandings applicable to TCPR at any time exceed US$766,600,000 , TCPR shall immediately prepay Loans in an aggregate amount equal to such excess, (iv) if for any reason the Total Outstandings applicable to TLG at any time exceed US$383,300,000 , TLG shall immediately prepay Loans in an aggregate amount equal to such excess and (v) if for any reason the Total Outstandings applicable to TCCI at any time exceed the Aggregate Tranche B Commitments then in effect, TCCI shall (x) immediately prepay Loans in an aggregate amount equal to such excess and (y) to the extent necessary after TCCI has made all prepayments required pursuant to clause (x), cash collateralize the outstanding Bankers’ Acceptances, Drafts and BA Equivalent Notes in accordance with Section 2.15(n) in an aggregate amount sufficient to eliminate such excess.

 

  

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(c)           Any Borrower may, upon notice to the applicable Swing Line Agent (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans made to it in whole or in part without premium or penalty; provided that (i) such notice must be received by the applicable Swing Line Agent and the Administrative Agent not later than 10:00 a.m. (London, England time) in the case of any Swing Line Loans funded in Europe, 10:00 a.m. (Pacific time) in the case of any Swing Line Loans funded in the United States or 9:00 a.m. (Pacific time) in the case of any Swing Line Loans funded in Canada on the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal amount of US$1,000,000.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by the applicable Borrower, such Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

 

(d)           If the Administrative Agent notifies the Borrowers that the aggregate of a Lender’s Tranche A Loans and Tranche B Loans plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans exceeds such Lender’s Commitment Cap, then within two Business Days after receipt of such notice, the Borrowers shall prepay Loans in an aggregate amount sufficient to reduce the aggregate of such Lender’s Tranche A Loans and Tranche B Loans plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans to an amount not to exceed 100% of such Lender’s Commitment Cap then in effect.

 

Section 2.5 Termination or Reduction of Commitments.  (a) The Tranche A Borrowers may, upon notice to the Administrative Agent, terminate or from time to time permanently reduce the Aggregate Tranche A Commitments; TCCI may, upon notice to the Canadian Sub-Agent and the Administrative Agent, terminate the Aggregate Tranche B Commitments, or from time to time permanently reduce the Aggregate Tranche B Commitments; provided that (i) any such notice shall be received by the Administrative Agent or the Canadian Sub-Agent, as applicable, not later than 10:00 a.m. (Pacific time), on the Business Day immediately prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of US$25,000,000 or any whole multiple of US$5,000,000 in excess thereof, (iii) such Borrower shall not terminate or reduce such Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings applicable to such Borrower would exceed the Aggregate Commitments applicable to such Borrower, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess.  The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments shall be applied to the applicable Commitment of each appropriate Lender according to its Pro Rata Share.  All facility fees accrued for the account of the applicable Borrower until the effective date of any termination of the applicable Aggregate Commitments shall be paid on the effective date of such termination.

 

(b)           Non-Ratable Reduction.  The Tranche A Borrowers or TCCI shall have the right, at any time, upon at least three Business Days’ notice to a Defaulting Lender (with a copy to the Administrative Agent), to terminate in whole such Defaulting Lender’s Tranche A Commitments or Tranche B Commitments, respectively.  Such termination shall be effective, (x) with respect to such Defaulting Lender’s unused Tranche A Commitments or Tranche B Commitments, as applicable, on the date set forth in such notice, provided, however, that such 

 

  

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date shall be no earlier than three Business Days after receipt of such notice and (y) with respect to each Tranche A Loan or Tranche B Loan outstanding to such Defaulting Lender, if such Loan is a Base Rate Loan or Canadian Prime Rate Loan, on the date set forth in such notice and, if such Loan is a Eurocurrency Rate Loan, a Money Market LIBOR Loan or a Money Market Absolute Rate Loan, on the last day of the then current Interest Period relating to such Loan.  Upon termination of a Lender’s Commitment under this Section 2.5(b), the Tranche A Borrowers or TCCI, as applicable, will pay or cause to be paid all principal of, and interest accrued to the date of such payment on, Tranche A Loans or Tranche B Loans, as applicable, owing to such Defaulting Lender and pay any accrued facility fee payable to such Defaulting Lender pursuant to the provisions of Section 2.8(a), and all other amounts payable to such Defaulting Lender hereunder (including, but not limited to, any increased costs or other amounts owing under Section 3.4 and any indemnification for Taxes under Section 3.1); and upon such payments, the obligations of such Defaulting Lender hereunder shall, by the provisions hereof, be released and discharged; provided, however, that (i) such Defaulting Lender’s rights under Sections 3.1, 3.4, 9.4 and 9.5, and its obligations under Section 8.7 shall survive such release and discharge as to matters occurring prior to such date; and (ii) no claim that the Tranche A Borrowers or TCCI may have against such Defaulting Lender arising out of such Defaulting Lender’s default hereunder shall be released or impaired in any way.  Subject to Section 2.14, the aggregate amount of the Commitments of the Lenders once reduced pursuant to this Section 2.5(b) may not be reinstated; provided further, however, that if pursuant to this Section 2.5(b), the Tranche A Borrowers or TCCI, as applicable, pay or cause to be paid to a Defaulting Lender any principal of, or interest accrued on, the Tranche A Loans or Tranche B Loans owing to such Defaulting Lender, then the Tranche A Borrowers or TCCI, as applicable, shall pay or cause to be paid a ratable payment of principal and interest to all Tranche A Lenders or Tranche B Lenders, as applicable, who are not Defaulting Lenders.

 

Section 2.6 Repayment of Loans.

 

(a)           Each Borrower shall repay to the Administrative Agent for the account of each Lender on the Revolving Maturity Date applicable to such Lender the aggregate principal amount of Loans made to it by such Lender and outstanding on such date.

 

(b)           Each Borrower shall repay each Money Market Loan made to it on the earlier to occur of (i) the last day of the Interest Period therefor and (ii) the Revolving Maturity Date applicable to the Lender that made such Money Market Loan.

 

(c)           Each Borrower shall repay each Swing Line Loan made to it on the earlier to occur of (i) the date ten Business Days after such Loan is made and (ii) the next occurring Revolving Maturity Date.

 

Section 2.7 Interest.

 

(a)           Subject to the provisions of subsection (b) below, (i) subject to Section 3.2, each Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable Rate (as determined on the applicable Spread Determination Date) plus in the case of a Eurocurrency Rate Loan of any Lender which is lent from a Lending Office in the 

 

  

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United Kingdom or a Participating Member State, the Mandatory Cost; (ii) each Base Rate Committed Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate (as determined on the applicable Spread Determination Date); (iii) each Canadian Prime Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Canadian Prime Rate plus the Applicable Rate (as determined on the applicable Spread Determination Date); (iv) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Swing Line Rate; (v) subject to Section 3.2, each Money Market LIBOR Loan shall bear interest on the outstanding principal amount thereof for the Interest Period applicable thereto at a rate per annum equal to the sum of the Eurocurrency Rate for such Interest Period plus or minus the Money Market Margin quoted by the Lender making such Loan; and (vi) each Money Market Absolute Rate Loan shall bear interest on the outstanding principal amount thereof for the Interest Period applicable thereto at a rate per annum equal to the Money Market Absolute Rate quoted by the Lender making such Loan.

 

(b)           If any amount payable by any Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable on demand.

 

(c)           Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

Section 2.8 Fees.

 

(a)           Facility Fee.  TMCC, for the account of the Borrowers, shall pay or cause to be paid to the Administrative Agent for the account of each Applicable Tranche Lender in accordance with its Pro Rata Share, a facility fee in US Dollars equal to the Applicable Percentage times the actual daily amount of the Aggregate Commitments of such Applicable Tranche Lenders, regardless of usage (or, if the Aggregate Commitments of such Applicable Tranche Lenders have terminated, on the Outstanding Amount of all Loans and Swing Line Loans of such Applicable Tranche Lender made to the applicable Borrower(s)), which fee shall accrue at all times during the Tranche A Availability Period of such Lender or the Tranche B Availability Period of such Lender, as applicable (and thereafter so long as any Loans or Swing Line Loans of such Applicable Tranche Lenders made to any Applicable Borrower remain outstanding), including at any time during which one or more of the conditions in Article IV is not met; provided that no such fee shall be paid on the unused Tranche A Commitments or unused Tranche B Commitments of any Applicable Tranche Lender that is a Defaulting Lender.  Facility fees shall be calculated quarterly in arrears, and are due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the Revolving Maturity Date of such 

 

  

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Applicable Tranche Lender (and, if applicable, thereafter on demand).  Notwithstanding the above, the facility fees payable to each Lender shall be calculated with respect to such Lender’s Commitment Cap, such that in no event shall the aggregate amount of the facility fees paid to any Lender pursuant to this Section 2.8(a) exceed the facility fees that would have been payable to such Lender if the aggregate amount of such Lender’s Commitments were equal to the amount of its Commitment Cap.

 

(b)           Other Fees. The Borrowers shall pay to the Arrangers and the Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the Fee Letters, if any.  Any such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

Section 2.9 Computation of Interest and Fees.  All computations (a) of interest for Base Rate Loans when the Base Rate is determined by BNP Paribas’s United States “prime rate” and (b) of interest for Canadian Prime Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All computations of Drawing Fees shall be made on the basis of a year of 365 or 366 days, as applicable, and the term to maturity of the applicable Draft.  All computations of a Drawing Purchase Price shall be made on the basis of a year of 365 days, and the term to maturity of the applicable Draft.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year), or, in the case of interest in respect of Committed Loans denominated in Alternative Currencies as to which market practice differs from the foregoing, in accordance with such market practice.  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.11(a), bear interest for one day.

 

Section 2.10 Evidence of Debt.  The Loans made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lenders to each Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of any Borrower under the Loan Documents to pay any amount owing with respect to the Obligations of such Borrower.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, each Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount, currency and maturity of its Loans and payments with respect thereto.

 

Section 2.11 Payments Generally.

 

  

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(a)           All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein and except with respect to principal of and interest on Loans denominated in an Alternative Currency, all payments by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s (or in the case of Tranche B Lenders, the Canadian Sub-Agent’s) Office in US Dollars and in Same Day Funds not later than 2:00 p.m. (or in the case of the Tranche B Lenders, not later than 12:00 p.m.) on the date specified herein.  Except as otherwise expressly provided herein, all payments by the Borrowers hereunder with respect to principal and interest on Loans denominated in an Alternative Currency shall be made to the Administrative Agent (or in the case of TCCI, the Canadian Sub-Agent), for the account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office or Canadian Sub-Agent’s Office in such Alternative Currency and in Same Day Funds not later than the Applicable Time specified by the Administrative Agent on the dates specified herein.  Except as otherwise expressly provided herein, all payments by (i) the Tranche A Borrowers shall be made to the Administrative Agent and (ii) TCCI shall be made to the Canadian Sub-Agent, for the account of the respective Lenders to which such payment is owed.  Without limiting the generality of the foregoing, the Administrative Agent may require that (x) any payment by any Borrower due under this Agreement, other than any payment to be made in respect of the Tranche B Facility, be made in the United States and (y) any payments to be made by TCCI in respect of the Tranche B Facility be made in Canada.  If, for any reason, any Borrower is prohibited by any Law from making any required payment hereunder in an Alternative Currency, such Borrower shall make such payment in US Dollars in the Dollar Equivalent of the Alternative Currency payment amount.  The Administrative Agent or the Canadian Sub-Agent, as the case may be, will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent or the Canadian Sub-Agent (i) after 2:00 p.m., in the case of payments in US Dollars, or (ii) after the Applicable Time specified by the Administrative Agent or the Canadian Sub-Agent in the case of payments in an Alternative Currency, shall in each case be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.

 

(b)           If any payment to be made by any Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.  Whenever any payment hereunder in respect of Bankers’ Acceptances, Drafts or BA Equivalent Notes shall be stated to be due on a day other than a Canadian Business Day such payment shall be made on the next succeeding Canadian Business Day.

 

(c)           Unless a Borrower or any Lender has notified the Administrative Agent or the Canadian Sub-Agent, as the case may be, prior to the time any payment is required to be made by it to the Administrative Agent or the Canadian Sub-Agent hereunder, that such Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent or the Canadian Sub-Agent may assume that such Borrower or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto.  If and to the extent that such 

 

  

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payment was not in fact made to the Administrative Agent or the Canadian Sub-Agent in Same Day Funds, then:

 

(i)           if a Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent or the Canadian Sub-Agent, as the case may be, the portion of such assumed payment that was made available to such Lender in Same Day Funds, together with interest thereon in respect of each day from and including the date such amount was made available by the Administrative Agent or the Canadian Sub-Agent to such Lender to the date such amount is repaid to the Administrative Agent or Canadian Sub-Agent in Same Day Funds at the Overnight Rate from time to time in effect; and

 

(ii)           if any Lender failed to make such payment, such Lender shall forthwith on demand pay to the Administrative Agent or the Canadian Sub-Agent, as the case may be, the amount thereof in Same Day Funds, together with interest thereon for the period from the date such amount was made available by the Administrative Agent or the Canadian Sub-Agent to the applicable Borrower to the date such amount is recovered by the Administrative Agent or the Canadian Sub-Agent (the “Compensation Period”) at a rate per annum equal to the Overnight Rate from time to time in effect.  If such Lender pays such amount to the Administrative Agent or the Canadian Sub-Agent, then such amount shall constitute such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount forthwith upon the Administrative Agent’s or the Canadian Sub-Agent’s demand therefor, the Administrative Agent or the Canadian Sub-Agent may make a demand therefor upon the applicable Borrower, and such Borrower shall pay such amount to the Administrative Agent or the Canadian Sub-Agent, together with interest thereon for the Compensation Period at a rate per annum equal to the rate of interest applicable to the applicable Borrowing.  Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Administrative Agent, the Canadian Sub-Agent or any Borrower may have against any Lender as a result of any default by such Lender hereunder.

 

A notice of the Administrative Agent or the Canadian Sub-Agent, as the case may be, to any Lender or any Borrower with respect to any amount owing under this subsection (c) shall be conclusive, absent manifest error.

 

(d)           If any Lender makes available to the Administrative Agent or the Canadian Sub-Agent, as the case may be, funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the applicable Borrower by the Administrative Agent or the Canadian Sub-Agent because the conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent or the Canadian Sub-Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest, on the succeeding Business Day.

 

(e)           The obligations of the Lenders hereunder to make Committed Loans and to fund participations in Swing Line Loans are several and not joint.  The failure of any Lender to make any Committed Loan or to fund participations in Swing Line Loans on any date required 

 

  

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hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Committed Loan or to fund participations in Swing Line Loans.

 

(f)           Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

(g)           For the purposes of the Interest Act (Canada) and disclosure under such act, whenever any interest or fees to be paid by TCCI under this Agreement is to be calculated on the basis of a period of time that is less than a calendar year, the yearly rate of interest to which the rate determined pursuant to such calculation is equivalent is the rate so determined multiplied by the number of days in the calendar year in which the same is to be ascertained and divided by the actual number of days in such period of time.

 

(h)           Notwithstanding any provision of this Agreement, in no event shall the aggregate “interest” (as defined in section 347 of the Criminal Code (Canada)) payable by TCCI under this Agreement exceed the effective annual rate of interest on the “credit advanced” (as defined in that section) under this Agreement lawfully permitted by that section and, if any payment, collection or demand pursuant to this Agreement in respect of “interest” (as defined in that section) payable by TCCI is determined to be contrary to the provisions of that section, such payment, collection or demand shall be deemed to have been made by mutual mistake of TCCI, the Administrative Agent and the Lenders and the amount of such payment or collection shall be refunded to TCCI.  For the purposes of this Agreement, the effective annual rate of interest shall be determined in accordance with generally accepted actuarial practices and principles over the relevant term and, in the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Administrative Agent will be prima facie evidence of such rate.

 

Section 2.12 Sharing of Payments.  If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Committed Loans made by it to a Borrower, or the participations in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Committed Loans or participations and accrued interest thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent or the Canadian Sub-Agent, as the case may be, of such fact, and (b) purchase from the other Lenders (other than any Defaulting Lenders) such participations in the Committed Loans and subparticipations in Swing Line Loans and Swing Line Loans made by them to such Borrower as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Committed Loans and Swing Line Loans pro rata with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 9.6 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon.  Each Borrower 

 

  

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agrees that any Lender so purchasing a participation or subparticipation from another Lender may, to the fullest extent permitted by Law, exercise all of its rights of payment (including any right of set-off, but subject to Section 9.9) with respect to such participation or subparticipation as fully as if such Lender were the direct creditor of such Borrower in the amount of such participation or subparticipation.  The Administrative Agent or the Canadian Sub-Agent, as the case may be, will keep records (which shall be conclusive and binding in the absence of manifest error) of participations or subparticipation purchased under this Section and will in each case notify the Lenders following any such purchases or repayments.  Each Lender that purchases a participation or subparticipation pursuant to this Section shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.

 

Section 2.13 Extension of Revolving Maturity Date.

 

(a)           Not earlier than 60 days prior to, nor later than 30 days prior to, any anniversary of the Closing Date (an “Extension Date”), the Borrowers may, upon notice to the Administrative Agent (which shall promptly notify the appropriate Lenders), request an extension of the Revolving Maturity Date then in effect for a period of one year.  Within 20 days of delivery of such notice, each appropriate Lender shall notify the Administrative Agent whether or not it consents to such extension (which consent may be given or withheld in such Lender’s sole and absolute discretion).  Any Lender not responding within the above time period shall be deemed not to have consented to such extension.  The Administrative Agent shall notify the Borrowers and the appropriate Lenders of the Lenders’ responses not less than 24 days after receipt of notice of such extension request.  If any Lender declines, or is deemed to have declined, to consent to such extension, the applicable Borrower may, at its own expense, cause any such Lender to be replaced as a Lender pursuant to Section 9.16.

 

(b)           The Revolving Maturity Date shall be extended only if Lenders holding at least 51% of all outstanding Commitments (after giving effect to any replacements of Lenders permitted herein) (the “Consenting Lenders”) have consented thereto.  If so extended, the Revolving Maturity Date, as to the Consenting Lenders, shall be extended for one year from the Revolving Maturity Date then in effect, effective as of the applicable Extension Date.  The Administrative Agent and the Borrowers shall promptly confirm to the Lenders such extension.  As a condition precedent to such extension, each Borrower shall deliver to the Administrative Agent a certificate of such Borrower dated as of the Extension Date (in sufficient copies for each appropriate Lender) signed by a Responsible Officer of such Borrower (i) certifying and attaching the resolutions adopted by such Borrower approving or consenting to such extension and (ii) certifying that, before and after giving effect to such extension, (A) the representations and warranties of such Borrower contained in Article V and the other Loan Documents are true and correct on and as of the Extension Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Section 2.13, the representations and warranties contained in subsections (a) and (b) of Section 5.4 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.1, and (B) no Default with respect to such Borrower exists.  The Borrowers shall prepay any Committed Loans outstanding on each Revolving Maturity Date (and pay any additional amounts required pursuant 

 

  

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to Section 3.5) to the extent necessary to keep outstanding Committed Loans ratable with any revised and new Pro Rata Shares of all the Lenders.

 

(c)           This Section shall supersede any provisions in Section 2.12 or Section 9.1 to the contrary.

 

Section 2.14 Increase in Commitments.

 

(a)           Provided there exists no Default applicable to any Tranche A Borrower, upon notice by TMCC to the Administrative Agent (which shall promptly notify the appropriate Lenders), TMCC may from time to time, request an increase in the Aggregate Commitments applicable to all Tranche A Borrowers to an amount (for all such requests) not exceeding US$4,791,250,000.  At the time of sending such notice, TMCC (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than 10 Business Days from the date of delivery of such notice to the appropriate Lenders).  Each appropriate Lender shall notify the Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Pro Rata Share of such requested increase.  Any appropriate Lender not responding within such time period shall be deemed to have declined to increase its Commitment.  The Administrative Agent shall notify all of the Tranche A Borrowers and each appropriate Lender of the Lenders’ responses to each request made hereunder.  To achieve the full amount of a requested increase, TMCC may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel; provided that the minimum commitment of each such Eligible Assignee is not less than US$10,000,000.  The consent of the Lenders is not required to increase the amount of the Aggregate Tranche A Commitments pursuant to this Section, except that each appropriate Lender shall have the right to consent to an increase in the amount of its Commitment as set forth in this Section 2.14(a).  If the Lenders and Eligible Assignees do not agree to increase the applicable Aggregate Tranche A Commitments by the amount requested by TMCC pursuant to this Section 2.14(a), TMCC may (i) withdraw its request for an increase in its entirety or (ii) accept, in whole or in part, the increases that have been offered.

 

(b)           If the applicable Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and TMCC shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly notify TMCC and the appropriate Lenders of the final allocation of such increase and the Increase Effective Date.  As a condition precedent to such increase, each Tranche A Borrower shall deliver to the Administrative Agent a certificate of such Tranche A Borrower dated as of the Increase Effective Date (in sufficient copies for each appropriate Lender) signed by a Responsible Officer of such Tranche A Borrower certifying that no Default applicable to such Tranche A Borrower exists.  The Tranche A Borrowers shall prepay any Committed Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.5) to the extent necessary to keep the outstanding Committed Loans ratable with any revised Pro Rata Shares arising from any nonratable increase in the Commitments under this Section.

 

  

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(c)           This Section shall supersede any provisions in Sections 2.12 or 9.1 to the contrary.

Section 2.15 Drawings of Bankers’ Acceptances, Drafts and BA Equivalent Notes.

 

(a)           Request for Drawing.  Each Drawing shall be made on notice, given not later than 11:00 A.M. (Montreal time) on a Canadian Business Day at least two Canadian Business Days prior to the date of the proposed Drawing, by TCCI to the Canadian Sub-Agent, which shall give each Tranche B Lender prompt notice thereof by telecopier.  Each notice of a Drawing shall be in writing (including by telecopier), in substantially the form of Exhibit A-1 hereto, specifying therein the requested (i) date of such Drawing (which shall be a Canadian Business Day), (ii) aggregate Face Amount of such Drawing and (iii) initial BA Maturity Date for each Bankers’ Acceptance and Draft comprising part of such Drawing; provided, however, that, if the Canadian Sub-Agent determines in good faith (which determination shall be conclusive and binding upon TCCI) that the Drafts to be accepted and purchased (or purchased, as the case may be) as part of any Drawing cannot, due solely to the requested aggregate Face Amount thereof, be accepted and/or purchased ratably by the Tranche B Lenders in accordance with Section 2.1(b), then the aggregate Face Amount of such Bankers’ Acceptances to be created and purchased and Drafts to be purchased shall be reduced to such lesser amount as the Canadian Sub-Agent determines will permit such Drafts comprising part of such Drawing to be so accepted and purchased (or to be purchased, as the case may be).  The Canadian Sub-Agent agrees that it will, as promptly as practicable, notify TCCI of the unavailability of Bankers’ Acceptances.  Each Draft in connection with any requested Drawing (A) shall be in a minimum amount of CDN$5,000,000 or an integral multiple of CDN$1,000,000 in excess thereof, and (B) shall be dated the date of the proposed Drawing.  Each Tranche B Lender shall, before 1:00 P.M. (Montreal time) on the date of each Drawing, (i) complete one or more Drafts in accordance with the related Committed Loan Notice, accept such Drafts and purchase the Bankers’ Acceptances created thereby for the Drawing Purchase Price; or (ii) complete one or more Drafts in accordance with the Drawing Notice and purchase such Drafts for the Drawing Purchase Price and shall, before 1:00 P.M. (Montreal time) on such date, make available for the account of its Applicable Lending Office to the Canadian Sub-Agent at its Canadian Sub-Agent’s Office, in same day funds, the Drawing Purchase Price payable by such Tranche B Lender for such Drafts less the Drawing Fee payable to such Tranche B Lender with respect thereto under Section 2.15(b).  Upon the fulfillment of the applicable conditions set forth in Section 4.2, the Canadian Sub-Agent will make the funds it has received from the Tranche B Lenders available to TCCI by wire transfer in accordance with instructions provided to (and reasonably acceptable to) the Canadian Sub-Agent by the Canadian Borrower.

 

(b)           Drawing Fees.  TCCI shall, on the date of each Drawing and on the date of each renewal of any outstanding Bankers’ Acceptances or BA Equivalent Notes, pay to the Canadian Sub-Agent, in Canadian Dollars, for the ratable account of the Tranche B Lenders accepting Drafts and purchasing Bankers’ Acceptances or purchasing Drafts which have not been accepted by any Tranche B Lender, the Drawing Fee with respect to such Drafts.  TCCI irrevocably authorizes each such Tranche B Lender to deduct the Drawing Fee payable with respect to each Draft of such Tranche B Lender from the Drawing Purchase Price payable by such Tranche B Lender in respect of such Draft in accordance with this Section 2.15 and to apply such amount so withheld to the payment of such Drawing Fee for the account of TCCI and, to the extent such 

 

  

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Drawing Fee is so withheld and legally permitted to be so applied, TCCI’s obligations under the preceding sentence in respect of such Drawing Fee shall be satisfied.

 

(c)           Limitations on Drawings.  Anything in Section 2.15(a) to the contrary notwithstanding, TCCI may not select a Drawing if the obligation of the Tranche B Lenders to purchase and accept Bankers’ Acceptances shall then be suspended pursuant to Section 2.15(e) or 3.2(b).

 

(d)           Binding Effect of Committed Loan Notices.  Each Committed Loan Notice for a Drawing shall be irrevocable and binding on TCCI.  In the case of any proposed Drawing, TCCI shall indemnify each Tranche B Lender (absent any gross negligence by the Tranche B Lender) against any loss, cost or expense incurred by such Tranche B Lender as a result of any failure to fulfill on or before the date specified in the Committed Loan Notice for such Drawing the applicable conditions set forth in Section 4.2, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Tranche B Lender to fund the Drawing Purchase Price to be paid by such Tranche B Lender for Drafts when, as a result of such failure, such Drafts are not issued on such date (but, in any event, excluding any loss of profit and the Drawing Fee applicable to such Drafts).

 

(e)           Circumstances Making Bankers’ Acceptances Unavailable.  If the Canadian Sub-Agent in good faith determines that for any reason a market for Bankers’ Acceptances does not exist at any time or the Tranche B Lenders cannot for other reasons, after reasonable efforts, readily sell Bankers’ Acceptances or perform their other obligations under this Agreement with respect to Bankers’ Acceptances, the Canadian Sub-Agent will promptly so notify TCCI and each Tranche B Lender.  Thereafter, TCCI’s right to request the acceptance and/or purchase of Drafts shall be and remain suspended until the Canadian Sub-Agent determines and notifies TCCI and each Tranche B Lender that the condition causing such determination no longer exists.

 

(f)           Presigned Draft Forms.  To enable the Tranche B Lenders to create Bankers’ Acceptances or purchase Drafts, as the case may be, in accordance with Section 2.1(b) and this Section 2.15, TCCI hereby appoints each Tranche B Lender as its attorney to sign and endorse on its behalf (for the purpose of acceptance and/or purchase of Drafts pursuant to this Agreement), in handwriting or by facsimile or mechanical signature as and when deemed necessary by such Tranche B Lender, blank forms of Drafts.  In this respect, it is each Tranche B Lender’s responsibility to maintain an adequate supply of blank forms of Drafts for acceptance under this Agreement.  TCCI recognizes and agrees that all Drafts signed and/or endorsed on its behalf by a Tranche B Lender shall bind TCCI as fully and effectually as if signed in the handwriting of and duly issued by the proper signing officers of TCCI.  Each Tranche B Lender is hereby authorized (for the purpose of acceptance and/or purchase of Drafts pursuant to this Agreement) to complete and issue such Drafts endorsed in blank in such face amounts as may be determined by such Tranche B Lender; provided that the aggregate amount thereof is equal to the aggregate amount of Drafts required to be purchased by such Tranche B Lender.  On request by TCCI, a Tranche B Lender shall cancel all forms of Drafts  which have been pre-signed or pre-endorsed by or on behalf of TCCI and which are held by such Tranche B Lender and have not yet been issued in accordance herewith.  Each Tranche B Lender further agrees to retain such records in the manner and/or the statutory periods provided in the various Canadian provincial or 

 

  

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federal statutes and regulations which apply to such Tranche B Lender.  Each Tranche B Lender shall maintain a record with respect to Drafts held by it in blank hereunder, voided by it for any reason, accepted and purchased by it hereunder, and cancelled at their respective maturities.  Each Tranche B Lender agrees to provide such records to TCCI at TCCI’s expense upon request.  Drafts shall be signed by a duly authorized officer or officers of TCCI or by its attorneys, including its attorneys appointed pursuant to this Section 2.15(f).  Notwithstanding that any person whose signature appears on any Drafts as a signatory for TCCI may no longer be an authorized signatory for TCCI at the date of issuance of a Drafts, such signature shall nevertheless be valid and sufficient for all purposes as if such authority had remained in force at the time of such issuance, and any such Drafts so signed shall be binding on TCCI.

 

(g)           Distribution of Bankers’ Acceptances.  Bankers’ Acceptances and Drafts purchased by a Tranche B Lender in accordance with the terms of Section 2.1(b) and this Section 2.15 may, in such Tranche B Lender’s sole discretion, be held by such Tranche B Lender for its own account until the applicable BA Maturity Date or sold, rediscounted or otherwise disposed of by it at any time prior thereto in any relevant market therefor.

 

(h)           Failure to Fund in Respect of Drawings.  The failure of any Tranche B Lender to fund the Drawing Purchase Price to be funded by it as part of any Drawing shall not relieve any other Tranche B Lender of its obligation hereunder to fund its Drawing Purchase Price on the date of such Drawing, but no Tranche B Lender shall be responsible for the failure of any other Tranche B Lender to fund the Drawing Purchase Price to be funded or made, as the case may be by such other Tranche B Lender on the date of any Drawing.

 

(i)           Issue of BA Equivalent Notes.  TCCI shall, at the request of a Tranche B Lender, issue one or more non-interest bearing promissory notes (each a “BA Equivalent Note”) payable on the date of maturity of the unaccepted Draft referred to below, in such form as such Tranche B Lender may specify, in a principal amount equal to the Face Amount of, and in exchange for, any unaccepted Drafts which such Tranche B Lender has purchased or has arranged to have purchased in accordance with Section 2.1(b).  TCCI and each Tranche B Lender hereby acknowledge and agree that from time to time certain Tranche B Lenders may elect not to receive any BA Equivalent Note, and  TCCI and each applicable Tranche B Lender agrees that with respect to any such Tranche B Lender, in lieu of receiving BA Equivalent Notes, the applicable Tranche B Loan may be evidenced by a loan account which such Tranche B Lender shall maintain in its name, and in such event such loan account shall be entitled to all the benefits of BA Equivalent Notes.

 

(j)           Payment, Conversion or Renewal of Bankers’ Acceptances.  Upon the maturity of a Bankers’ Acceptance, Draft or BA Equivalent Note, TCCI may (i) elect to issue a replacement Bankers’ Acceptance, Draft or BA Equivalent Note by giving a Drawing Notice in accordance with Section 2.15(a), (ii) elect to have all or a portion of the Face Amount of such Bankers’ Acceptance, Draft or BA Equivalent Note converted to a Canadian Prime Rate Loan, by giving a Notice of Borrowing in accordance with Section 2.2, or (iii) pay, on or before 10:00 a.m. (Montreal time) on the maturity date for such Bankers’ Acceptance, Draft or BA Equivalent Note, an amount in Canadian Dollars equal to the Face Amount of such Bankers’ Acceptance, Draft or BA Equivalent Note (notwithstanding that a Tranche B Lender may be the holder thereof at maturity).  Any such payment shall satisfy TCCI’s obligations under the Bankers’ 

 

  

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Acceptance, Draft or BA Equivalent Note to which it relates and the relevant Lender shall thereafter be solely responsible for the payment of such Bankers’ Acceptances, Drafts or BA Equivalent Notes.  During the existence of an Event of Default with respect to TCCI, no Drawing may be requested, nor may any Bankers' Acceptance, Draft or BA Equivalent Note be renewed or continued by TCCI, without the consent of the applicable Required Lenders, and the Required Lenders may demand that any or all of the then outstanding Bankers' Acceptances, Drafts and BA Equivalent Notes be prepaid by TCCI on the last day of the then current BA Maturity Date with respect thereto.

 

(k)           Automatic Conversion.  If TCCI fails to pay any Bankers’ Acceptance, Draft or BA Equivalent Note when due, or to issue a replacement Bankers’ Acceptance, Draft or BA Equivalent Note in the Face Amount of such Bankers’ Acceptance, Draft or BA Equivalent Note pursuant to Section 2.15 (j), the unpaid amount due and payable in respect thereof shall be converted, as of such date, and without any necessity for TCCI to give a Notice of Borrowing in accordance with Section 2.2, to a Canadian Prime Rate Loan made by the Tranche B Lenders ratably under this Agreement and shall bear interest calculated and payable as provided in Section 2.7.

 

(l)           Payment of Bankers Acceptances on Default.  In the event that the maturity of outstanding Bankers’ Acceptances, Drafts and BA Equivalent Notes is accelerated pursuant to Section 7.1, TCCI shall pay to the Canadian Sub-Agent in Canadian Dollars in same-day funds the aggregate principal amount of all such Bankers’ Acceptances, Drafts and BA Equivalent Notes in satisfaction of its obligations in respect thereof.

 

(m)           Inconsistencies.  In the event of any inconsistency between the provisions of this Section 2.15 and any other provision of Article II with respect to Bankers’ Acceptances or BA Equivalent Notes, the provisions of this Section 2.15 shall prevail.

 

(n)           Cash Collateralization.  Subject to Section 2.15(l), (i) an amount equal to the aggregate Face Amount of all Bankers’ Acceptances, Drafts and BA Equivalent Notes which are subject to any voluntary or mandatory prepayment by TCCI shall be deposited by TCCI with the Canadian Sub-Agent, in Canadian Dollars, until the BA Maturity Date of each such Bankers’ Acceptance, Drafts and BA Equivalent Note and (ii) upon the BA Maturity Date of any Bankers’ Acceptance, Draft or BA Equivalent Note in respect of which any such deposit has been made, the Canadian Sub-Agent shall be, and hereby is, authorized (without notice to or any further action by TCCI) to apply such amount (or the applicable portion thereof) to the payment of such Bankers’ Acceptance, Draft or BA Equivalent Note.

 

Section 2.16 Swing Line Loans.

 

(a)           The Swing Line.  Subject to the terms and conditions set forth herein, each Swing Line Lender severally agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.16 to make loans in US Dollars or any Alternative Currency (each such loan, a “Swing Line Loan”) to the Borrowers from time to time on any Business Day during the Availability Period applicable to such Swing Ling Lender in an aggregate amount not to exceed at any time outstanding (i) for each Swing Line Lender, such Swing Line Lender’s Swing Line Commitment or (ii) for all Swing Line Loans, the amount of the Swing Line Sublimit, 

 

  

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notwithstanding the fact that such Swing Line Loans, when aggregated with the ratable share of the Outstanding Amount of Committed Loans and Money Market Loans of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Commitments; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Outstandings in respect of the Tranche A Borrowers or TCCI, respectively, shall not exceed the applicable Aggregate Commitments, (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender under the Tranche A Commitments or Tranche B Commitments, as applicable, plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans to the applicable Borrower(s) shall not exceed such Lender’s Commitment applicable to such Borrower(s) and (iii) the aggregate Outstanding Amount of Committed Loans of any Lender under the Tranche A Facility and Tranche B Facility, plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment Cap and provided, further, that the Borrowers shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.  Each Swing Line Borrowing shall consist of borrowings made from the several Swing Line Lenders ratably to their respective Swing Line Commitments.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.16, prepay under Section 2.4, and reborrow under this Section 2.16.  Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s ratable share times the amount of such Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the applicable Borrower’s irrevocable notice to the applicable Swing Line Agent and the Administrative Agent, which (x) in the case of Swing Line Loans requested by notice to the Administrative Agent, may be given by telephone and (y) in the case of Swing Line Loans requested by notice to a Swing Line Agent, may not be given by telephone, but may be given by electronic delivery, confirmed promptly by delivery to the applicable Swing Line Agent and the Administrative Agent of an original Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the applicable Borrower.  Each such notice must be received by the applicable Swing Line Agent and the Administrative Agent not later than 10:00 a.m. (London, England time) in the case of any Swing Line Loans to be funded in Europe, 10:00 a.m. (Pacific time) in the case of any Swing Line Loans to be funded in the United States or 9:00 a.m. (Pacific time) in the case of any Swing Line Loans to be funded in Canada on the requested borrowing date, and shall specify (i) the amount and currency to be borrowed, which shall be a minimum of US$1,000,000, (or CDN$500,000 where the Swing Line Borrowing is requested by TCCI) (provided that, in the case of TMFNL, such amount shall not be less than the Dollar Equivalent of EUR 100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht)), and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the applicable Swing Line Agent and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the applicable Borrower.  Promptly after receipt by the applicable Swing Line Agent of any telephonic Swing Line Loan Notice, such Swing Line Agent will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, such Swing Line Agent will notify the Administrative Agent (by telephone or in writing) of the contents 

 

  

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thereof, and will notify each Swing Line Lender (by telephone or in writing) of the contents thereof.  Unless the applicable Swing Line Agent has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. (London, England time, in the case of any Swing Line Loan to be funded in Europe, or New York City time, in the case of any Swing Line Loan to be funded in North America) on the date of the proposed Swing Line Borrowing (A) directing each Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section 2.16(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, each Swing Line Lender will, not later than 3:00 p.m. (London, England time, in the case of any Swing Line Loan to be funded in Europe, Pacific time, in the case of any Swing Line Loan to be funded in the United States or Montreal time, in the case of any Swing Line Loan to be funded in Canada) on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the applicable Borrower at its office by crediting the account of such Borrower on the books of the applicable Swing Line Agent in Same Day Funds or as otherwise directed by such Borrower.

 

(c)           Refinancing of Swing Line Loans.

 

(i)           The Swing Line Lenders at any time in their respective sole and absolute discretion may direct the applicable Swing Line Agent to request, on behalf of the applicable Borrower (and each Borrower hereby irrevocably authorizes each Swing Line Agent to so request on its behalf), that each Applicable Tranche Lender make a Base Rate Committed Loan for the account of such Borrower in an amount equal to such Lender’s ratable share of (A) the amount of Swing Line Loans made to such Borrower and then outstanding, in the case of Swing Line Loans denominated in US Dollars, or (B) the Dollar Equivalent of the amount of Swing Line Loans made to such Borrower and then outstanding, in the case of Swing Line Loans denominated in any Alternative Currency.  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.2, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.2.  The applicable Swing Line Agent shall furnish the applicable Borrower with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent or the Canadian Sub-Agent, as applicable.  Each Applicable Tranche Lender shall make an amount equal to its ratable share of the amount specified in such Committed Loan Notice available to the Administrative Agent or the Canadian Sub-Agent, as applicable, in Same Day Funds for the account of the Swing Line Lenders at the Administrative Agent’s Office or the Canadian Sub-Agent’s Office, as applicable, for US Dollar-denominated payments not later than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon, subject to Section 2.16(c)(ii), each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan to the applicable Borrower in such amount.  The Administrative Agent or the Canadian Sub-Agent, as applicable shall remit the funds so received to the Swing Line Lenders.

 

  

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(ii)           If for any reason any Swing Line Loan cannot be refinanced by such a Committed Borrowing in accordance with Section 2.16(c)(i), the request for Base Rate Committed Loans submitted by the applicable Swing Line Agent as set forth herein shall be deemed to be a request by such Swing Line Agent that each Applicable Tranche Lender fund its risk participation in the relevant Swing Line Loan and each such Lender’s payment to the Administrative Agent for the account of the Swing Line Lenders pursuant to Section 2.16(c)(i) shall be deemed payment in respect of such participation.

 

(iii)           If any Applicable Tranche Lender fails to make available to the Administrative Agent or the Canadian Sub-Agent, as applicable, for the account of the Swing Line Lenders any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.16(c) by the time specified in Section 2.16(c)(i), the Swing Line Lenders shall be entitled to recover from such Lender (acting through the Administrative Agent or the Canadian Sub-Agent, as applicable), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lenders at a rate per annum equal to the applicable Overnight Rate from time to time in effect, plus any administrative, processing or similar fees customarily charged by the applicable Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or funded participation in the relevant Swing Line Loan, as the case may be.  A certificate of a Swing Line Lender submitted to any Lender (through the Administrative Agent or the Canadian Sub-Agent, as applicable) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

(iv)           Each Lender’s obligation to make Committed Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.16(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against any Swing Line Lender, any Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.16(c) is subject to the conditions set forth in Section 4.2.  No such funding of risk participations shall relieve or otherwise impair the obligation of any Borrower to repay Swing Line Loans made to it, together with interest as provided herein.

 

(d)           Repayment of Participations.

 

(i)           At any time after any Lender has purchased and funded a risk participation in a Swing Line Loan, if the applicable Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will promptly distribute to such Lender its ratable share thereof in the same funds as those received by such Swing Line Lender.

 

  

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(ii)           If any payment received by a Swing Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by such Swing Line Lender under any of the circumstances described in Section 9.6 (including pursuant to any settlement entered into by such Swing Line Lender in its discretion), each Lender shall pay to such Swing Line Lender its ratable share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the applicable Overnight Rate.  The Administrative Agent will make such demand upon the request of the applicable Swing Line Lender.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

(e)           Interest for Account of Swing Line Lenders.  The applicable Swing Line Agent shall be responsible for invoicing the applicable Borrower for interest on the Swing Line Loans.  Until each Lender funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.16 to refinance such Lender’s ratable share of any Swing Line Loan, interest in respect of such ratable share shall be solely for the account of the respective Swing Line Lenders.

 

(f)           Payments Directly to Swing Line Lender.  Each Borrower shall make all payments of principal and interest in respect of the Swing Line Loans made directly to the applicable Swing Line Agent, for the account of the respective Swing Line Lenders.

 

Section 2.17 Defaulting Lenders.  (a)  Generally.  Anything contained herein to the contrary notwithstanding, (i) to the extent permitted by applicable law, until such time as the Default Excess with respect to such Defaulting Lender shall have been reduced to zero, any prepayment of the Loans shall, if the Tranche A Borrowers or TCCI, as applicable, so direct at the time of making such prepayment, be applied to the Loans of other Applicable Tranche Lenders as if such Defaulting Lender had no Tranche A Loans or Tranche B Loans, as applicable, outstanding; (ii) such Defaulting Lender’s unused Aggregate Commitments shall be excluded for purposes of calculating the facility fee payable to Lenders pursuant to Section 2.8(a) in respect of any day during any Default Period with respect to such Defaulting Lender, and such Defaulting Lender shall not be entitled to receive any facility fee with respect to its unused Commitment(s) pursuant to Section 2.8(a) for any Default Period with respect to such Defaulting Lender; and (iii) the aggregate amount of the Tranche A Loans and Tranche B Loans as at any date of determination shall be calculated as if such Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender.  No Commitment of any Lender shall be increased or otherwise affected, and, except as otherwise expressly provided in this Section 2.17(a), performance by any Borrower or any Lender of its obligations hereunder shall not be excused or otherwise modified as a result of any failure by a Defaulting Lender to fund or the operation of this Section 2.17(a).  The rights and remedies against a Defaulting Lender under this Section 2.17(a) are in addition to other rights and remedies that the Borrowers, the Administrative Agent or any other Lender may have against such Defaulting Lender with respect to any Defaulted Loan.

(b)           Defaulting Lender Cure.  If the Borrowers, the Administrative Agent and each Swing Line Lender agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender 

 

  

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will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Swing Line Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable Tranche, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND ILLEGALITY

 

Section 3.1 Taxes.

(a)           Subject to the other provisions of this Section 3.1 and Section 9.15, any and all payments by any Borrower to or for the account of the Administrative Agent or any Lender under any Loan Document shall be made free and clear of and without deduction for any and all present or future Taxes.  If any Borrower shall be required by any Laws to deduct any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 3.1(a)), each of the Administrative Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower shall make such deductions, (iii) such Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable Laws, and (iv) within 30 days after the date of such payment, such Borrower shall furnish to the Administrative Agent (which shall forward the same to such Lender) the original or a certified copy of a receipt evidencing payment thereof or other evidence of such payment.

 

(b)           In addition, each Borrower agrees to pay to each appropriate Lender Other Taxes incurred by such Lender.

 

(c)           Each Borrower agrees to indemnify the Administrative Agent and each appropriate Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 3.1(c)) paid by the Administrative Agent and such Lender and (ii) any liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect thereto.  Payment under this Section 3.1(c) shall be made within 15 days after the date the Lender or the Administrative Agent makes a demand therefor.

 

(d)           In the case of interest payments made by TKG or TLG, this Section 3.1 shall only apply to a Lender who is the legal and beneficial owner of amounts received pursuant to this 

 

  

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Agreement and has provided evidence to TKG or TLG: (i) that such Lender is a person (a corporate body or an individual) which is, for taxation purposes, resident outside of the territory of the Federal Republic of Germany, (ii) if such Lender is a partnership, that all direct and indirect partners of that partnership are persons who are, for taxation purposes, resident outside of the territory of the Federal Republic of Germany, and does not hold any amounts received pursuant to this Agreement through a permanent establishment or a permanent representative in Germany or (iii) that such Lender qualifies as a credit institution or financial institution within the meaning of the German Banking Act (Kreditwesengesetz).

 

(e)           TFSUK is not required to pay additional amounts to a Lender (other than a new Lender pursuant to a request by a Borrower under Section 9.16) pursuant to Section 3.1 in respect of any Tax that is required by the United Kingdom to be withheld from a payment of interest on a Loan made to TFSUK if at the time the payment falls due (i) the relevant Lender is not a UK Qualifying Lender and that Tax would not have been required to be withheld had that Lender been a UK Qualifying Lender unless the reason that that Lender is not a UK Qualifying Lender is a change after the date on which it became a Lender under this Agreement in (or in the interpretation, administration or application of) any law or double taxation agreement or any published practice or published concession of any relevant Governmental Authority; or (ii) the relevant Lender is a UK Treaty Lender and TFSUK is able to demonstrate that that Tax is required to be withheld as a result of the failure of the relevant Lender to comply with its obligations under Section 9.15(a).  Any Lender which is a Lender in respect of a Loan to TFSUK and which is not, or ceases to be, a UK Qualifying Lender, for whatever reason, shall promptly notify the Administrative Agent and TFSUK.

 

(f)           If the Administrative Agent or a Lender shall become aware that it is entitled to claim a refund from a Governmental Authority in respect of, or remission for, Taxes or Other Taxes as to which it has received additional amounts under this Section 3.1, such Administrative Agent or Lender shall promptly notify the applicable Borrower and Agent (as applicable) of the availability of such claim and, to the extent that the Lender or the Administrative Agent (as applicable) determines in good faith that making such claim will not have an adverse effect on its taxes or business operation, shall, within 60 days of receipt of a request by such Borrower, make such claim.  If the Administrative Agent or Lender (acting in good faith) determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by such Borrower or with respect to which such Borrower has paid amounts pursuant to this Section 3.1, it shall pay over the amount of such refund to such Borrower, net of all out-of-pocket expenses of the Administrative Agent or such Lender (but amounts hereby recovered by the Borrower shall not exceed the indemnity payments made, or the amounts paid, as applicable, by such Borrower under this Section 3.1) and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund or credit); provided, however, that such Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (f), in no event will the Administrative Agent or any Lender be required to pay any amount to the Borrowers pursuant to this paragraph (f) the payment of which would place the Administrative Agent or such Lender in a less favorable net after-Tax position than the Administrative Agent or such Lender would have been in if the indemnification payments or additional amounts giving 

 

  

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rise to such refund had never been paid.  This Section 3.1(f) shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its Taxes which it deems confidential) to any Borrower or any other Person.

 

Section 3.2 Illegality.

(a)           If any Lender determines that any Regulatory Change occurring on or after the date of this Agreement has made it unlawful, or that any Governmental Authority has asserted that it is unlawful as a result of such Regulatory Change, for any Lender or its applicable Lending Office to make, maintain or fund Eurocurrency Rate Loans (whether denominated in US Dollars or an Alternative Currency) or Money Market LIBOR Loans, or to determine or charge interest rates based upon the Eurocurrency Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, US Dollars or any Alternative Currency in the applicable interbank market, then, on notice thereof by such Lender to the applicable Borrower through the Administrative Agent, any obligation of such Lender to make or continue Eurocurrency Rate Loans in the affected currency or currencies or, in the case of Eurocurrency Rate Loans in US Dollars, to convert Base Rate Committed Loans to Eurocurrency Rate Loans or to make a Money Market LIBOR Loan for which a Money Market Quote has been delivered shall be suspended until such Lender notifies the Administrative Agent and the applicable Borrower that the circumstances giving rise to such determination no longer exist (and such Lender shall give such notice promptly upon receiving knowledge that such circumstances no longer exist).  If a Lender shall determine that it may not lawfully continue to maintain and fund any of its outstanding Eurocurrency Rate Loans or Money Market LIBOR Loans to maturity and shall so specify in a notice pursuant to the preceding sentence, upon receipt of such notice, the applicable Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable and such Loans are denominated in US Dollars, convert all Eurocurrency Rate Loans or Money Market LIBOR Loans, as the case may be, of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Rate Loans or Money Market LIBOR Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurocurrency Rate Loans.  Upon any such prepayment or conversion, the applicable Borrower shall also pay accrued interest on the amount so prepaid or converted.  Each Lender agrees to designate a different Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.

(b)           Notwithstanding any other provision of this Agreement, if the introduction of or any change in the interpretation of any law or regulation shall make it unlawful, or any central bank or other governmental authority shall assert that it is unlawful, for any Tranche B Lender or its Lending Office to perform its obligations hereunder to complete and accept Drafts, to purchase Bankers’ Acceptances or to purchase Drafts or to continue to fund or maintain Bankers’ Acceptances or BA Equivalent Notes hereunder, then, on notice thereof and demand therefor by such Tranche B Lender to TCCI through the Administrative Agent (i) an amount equal to the aggregate Face Amount of all Bankers’ Acceptances, Drafts and BA Equivalent Notes outstanding at such time shall, upon such demand, be deposited by TCCI with the Administrative Agent in accordance with Section 2.15(l) until the BA Maturity Date of each such Bankers’ Acceptance, Drafts and BA Equivalent Note, (ii) upon the BA Maturity Date of any Bankers’ 

 

  

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Acceptance, Draft or BA Equivalent Note in respect of which any such deposit has been made, the Administrative Agent shall be, and hereby is, authorized (without notice to or any further action by TCCI) to apply such amount (or the applicable portion thereof) to the payment of such Bankers’ Acceptance, Draft or BA Equivalent Note or (iii) the obligation of the Tranche B Lenders to complete and accept Drafts and purchase Bankers’ Acceptances and to purchase Drafts that have not been accepted by a Tranche B Lender shall be suspended until the Administrative Agent shall notify TCCI that such Tranche B Lender has determined that the circumstances causing such suspension no longer exist (and such Lender shall give such notice promptly upon receiving knowledge that such circumstances no longer exist).

 

Section 3.3 Inability to Determine Rates.  If the applicable Required Lenders determine that for any reason in connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof that (a) deposits (whether in US Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurocurrency Base Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan (whether denominated in US Dollars or an Alternative Currency) made to a Borrower, or (c) the Eurocurrency Base Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan made to a Borrower does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify such Borrower and each Lender.  Thereafter, the obligation of the appropriate Lenders to make or maintain Eurocurrency Rate Loans in the affected currency or currencies to such Borrower shall be suspended until the Administrative Agent (upon the instruction of the applicable Required Lenders) revokes such notice (which revocation shall be made promptly upon such instruction from the applicable Required Lenders).  Upon receipt of such notice, the applicable Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in the affected currency or currencies or, failing that, will be deemed to have converted such request into a request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

Section 3.4 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurocurrency Rate Loans.

(a)           If on or after (i) the date hereof, in the case of Eurocurrency Rate Loans, Bankers’ Acceptances, Drafts and BA Equivalent Notes, or (ii) the date that a Money Market Quote is given for a Money Market LIBOR Loan, any Lender determines that as a result of a Regulatory Change, there shall be a material increase in the cost to such Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Loans or Money Market LIBOR Loan or of purchasing, accepting, making or maintaining Bankers’ Acceptances or BA Equivalent Notes, or a reduction in the amount received or receivable by such Lender in connection with any Eurocurrency Rate Loan, Money Market LIBOR Loan, Bankers’ Acceptance, Draft or BA Equivalent Note (excluding for purposes of this subsection (a) reserve requirements utilized in the determination of the Eurocurrency Rate), then from time to time within 15 days of demand by such Lender setting forth the amount or amounts necessary to compensate such Lender, together with  a reasonable basis therefor (with a copy of such demand to the Administrative Agent), subject to Section 3.4(c), the applicable Borrower shall pay to such Lender such 

 

  

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additional amounts as are sufficient to compensate such Lender for such increased cost incurred or reduction suffered.

(b)           If any Lender determines that the introduction of any Law after the date hereof regarding capital adequacy or liquidity or any change therein or in the interpretation thereof, or compliance by such Lender (or its Lending Office) therewith or as a result of any Regulatory Change, has the effect of materially reducing the rate of return on the capital of, or imposing material additional costs associated with liquidity requirements imposed by the Bank for International Settlements, the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority) or the United States financial regulatory authorities on, such Lender or any corporation controlling such Lender as a direct consequence of such Lender’s obligations hereunder, then from time to time upon demand of such Lender (with a copy of such demand to the Administrative Agent), subject to Section 3.4(c),the applicable Borrower shall pay within 15 days of demand by such Lender such additional amounts as are sufficient to compensate such Lender for such reduction suffered.

(c)           Promptly after receipt of knowledge of any Regulatory Change or other event that will entitle any Lender to compensation under this Section 3.4, such Lender shall give notice thereof to the applicable Borrower and the Administrative Agent certifying the basis for such request for compensation in accordance with Section 3.6(a) and shall (i) exercise reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to minimize any such increased cost and (ii) designate a different Lending Office if such designation will avoid, or reduce the amount of, compensation payable under this Section 3.4 and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.  Notwithstanding anything in Sections 3.4(a) or 3.4(b) to the contrary, no Borrower shall be obligated to compensate any Lender for any amount arising or accruing before 120 days prior to the date on which such Lender gives notice to such Borrower and the Administrative Agent under this Section 3.4(c) (except that, if the Regulatory Change or other event giving rise to such increased costs or reductions is retroactive, then the 120-day period referred to above shall be extended to include the period of retroactive effect thereof).

(d)           Notwithstanding anything to the contrary contained in this Agreement, (i) this Section 3.4 shall not apply to taxes, and (ii) all indemnification (including with respect to increased costs and reduction in amounts received) relating to or attributable to taxes shall be governed solely and exclusively by Section 3.1.

           Section 3.5 Funding Losses.  Within 15 days after delivery of the certificate described in the Section 3.6(a) by any Lender (with a copy to the Administrative Agent) from time to time, each Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of each of the following (except to the extent incurred by any Lender as a result of any action taken pursuant to Section 3.2):

(a)           any continuation, conversion, payment or prepayment of any Loan made to such Borrower other than a Base Rate Loan or a Canadian Prime Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

  

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(b)           any failure by such Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan or a Canadian Prime Rate Loan on the date or in the amount notified by such Borrower;

(c)           any failure by any Borrower to make payment of any Loan (or interest due thereon) denominated in an Alternative Currency on its scheduled due date or any payment thereof in a different currency; or

(d)           any assignment of a Eurocurrency Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by such Borrower pursuant to Section 9.16;

including any foreign exchange loss and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained but excluding loss of anticipated profits or margin for the period after which any such payment or failure to convert, borrow or prepay.  The applicable Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

Section 3.6 Matters Applicable to all Requests for Compensation.

(a)           A certificate of the Administrative Agent or any Lender claiming compensation under this Article III and setting forth in reasonable detail the additional amount or amounts to be paid to it hereunder shall be conclusive and binding upon all parties hereto in the absence of manifest error.  In determining such amount, the Administrative Agent or such Lender may use any reasonable averaging and attribution methods.

(b)           If (i) the obligation of any Lender to make Eurocurrency Rate Loans shall be suspended pursuant to Section 3.2 or (ii) any Lender has demanded compensation under Section 3.1 or Section 3.4 with respect to Eurocurrency Rate Loans, the applicable Borrower may give notice to such Lender through the Administrative Agent that, unless and until such Lender notifies such Borrower that the circumstances giving rise to such suspension or demand for compensation no longer exist, effective 5 Business Days after the date of such notice from such Borrower (A) all Loans which would otherwise be made by such Lender as Eurocurrency Rate Loans shall be made instead as Base Rate Loans (on which interest and principal shall be payable contemporaneously with the related Eurocurrency Rate Loans of the other Lenders), and (B) after each of such Lender’s Eurocurrency Rate Loans has been repaid, all payments of principal which would otherwise be applied to Eurocurrency Rate Loans shall be applied to repay such Lender’s Base Rate Loans instead.

(c)           If any Lender makes a claim for compensation or other payment under Section 3.1 or Section 3.4 or if any Lender determines that it is unlawful or impermissible for it to make, maintain or fund Eurocurrency Rate Loans or Money Market LIBOR Loans pursuant to Section 3.2, the applicable Borrower may replace such Lender in accordance with Section 9.16.

 

  

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(d)           Prior to giving notice pursuant to Section 3.2 or to demanding compensation or other payment pursuant to Section 3.1 or Section 3.4, each Lender shall consult with the applicable Borrower and the Administrative Agent with reference to the circumstances giving rise thereto; provided that nothing in this Section 3.6(d) shall limit the right of any Lender to require full performance by such Borrower of its obligations under such Sections.

 

ARTICLE IV

 

CONDITIONS

 

Section 4.1 Effectiveness.  This Agreement shall become effective, and the commitments under each of the Existing Credit Facilities shall be automatically terminated, on the date that each of the following conditions shall have been satisfied:

 

(a)           Receipt by the Administrative Agent of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the applicable Borrower, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to the Administrative Agent and its legal counsel:

(i)           executed counterparts of this Agreement, sufficient in number for distribution to the Administrative Agent and each Borrower;

(ii)          a Note executed by each Borrower in favor of each Lender requesting a Note;

(iii)         such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Borrower as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents;

(iv)         such documents and certifications as the Administrative Agent may reasonably require to evidence that each Borrower is duly organized or formed, and that such Borrower is validly existing, in good standing and qualified to engage in business, in its jurisdiction of organization;

(v)          a favorable opinion of Reed Smith LLP, counsel to TMCC, addressed to the Administrative Agent and each Lender, as to the matters and in the form set forth in Exhibit H;

(vi)         a favorable opinion of Pietrantoni Méndez & Alvarez LLP, counsel to TCPR, addressed to the Administrative Agent and each Lender, as to the matters and in the form set forth in Exhibit I-1;

 

  

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(vii)        a favorable opinion of Stikeman Elliott LLP, counsel to TCCI, addressed to the Administrative Agent and each Lender, as to the matters and in the form set forth in Exhibit I-2;

(viii)       favorable opinions of Freshfields Bruckhaus Deringer LLP, counsel to TMFNL, TFSUK, TKG and TLG, addressed to the Administrative Agent and each Lender, as to the matters and in the forms set forth in Exhibit I-3, Exhibit I-4 and Exhibit I-5;

(ix)           on the Closing Date, the following statements shall be true and the Administrative Agent shall have received for the account of each Lender a certificate of a Responsible Officer of each Borrower, stating that:

(A) the representations and warranties contained in Article V hereof arecorrect on and as of the Closing Date; and

(B) no event has occurred and is continuing that constitutes a Default; and

(x)           such other assurances, certificates, documents or consents as the Administrative Agent, the Swing Line Lenders or the applicable Required Lenders reasonably may require.

(b)           Any fees required to be paid pursuant to the Fee Letters on or before the Closing Date shall have been paid.

(c)           The Borrowers shall have paid in full all indebtedness, interest, fees and other amounts outstanding under each Existing Credit Facility and each Existing Credit Facility shall have been terminated.  Each of the Lenders that is a party to any Existing Credit Facility hereby waives, upon execution of this Agreement, any applicable requirement of prior notice under such credit agreement relating to the termination of commitments thereunder.

Without limiting the generality of the provisions of Section 8.3, for purposes of determining compliance with the conditions specified in this Section 4.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

           Section 4.2 Conditions to all Loans.  The obligation of each Lender to honor any Request for Loans (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type, or a continuation of Eurocurrency Rate Loans) made by any Borrower is subject to the following conditions precedent:

(a)           The representations and warranties of such Borrower contained in Article V (except for the representations and warranties set forth in Section 5.4(b), the accuracy of which it is expressly agreed shall not be a condition to making Loans) shall be true and correct in all material respects on and as of the date of such Loan, except (A) to the extent that such 

 

  

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representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, (B) for purposes of this Section 4.2, the representations and warranties contained in Section 5.4(a) shall be deemed to refer to the most recent statements furnished from time to time pursuant to Section 6.1(a) and (C) the representations and warranties contained in Section 5.1, Section 5.2(ii) and Section 5.5 shall be true and correct in all respects.

(b)           No Default with respect to such Borrower shall exist, or would result from such proposed Loan.

(c)           The Administrative Agent, the Canadian Sub-Agent or appropriate Swing Line Agent, as applicable, shall have received a Request for Loans in accordance with the requirements hereof.

Each Request for Loans (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type or a continuation of Eurocurrency Rate Loans) submitted by any Borrower shall be deemed to be a representation and warranty by such Borrower that the conditions specified in Sections 4.2(a) and (b) have been satisfied on and as of the date of the applicable Loans.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES

 

Each Borrower represents and warrants to the Administrative Agent and the Lenders, as to itself only and not as to any other Borrower, that:

 

Section  5.1 Corporate Existence and Power.  Such Borrower is duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, and has all organizational powers and is qualified to carry on its business as now conducted.

 

Section  5.2 Corporate and Governmental Authorization: No Contravention.  The execution, delivery and performance by such Borrower of this Agreement and each other Loan Document are within such Borrower’s organizational powers, have been duly authorized by all necessary organizational action, require no action by or in respect of, or filing with, any Governmental Authority except such as have been obtained and do not contravene, or constitute a default under, (i) any provision of applicable Law or of the Organization Documents of such Borrower or (ii) of any agreement, judgment, injunction, order, decree or other instrument binding upon such Borrower or any of its Subsidiaries where such default, individually or in the aggregate, would be reasonably likely to have a Material Adverse Effect with respect to such Borrower.

 

Section  5.3 Binding Effect.  This Agreement constitutes a valid and binding agreement of such Borrower and each other Loan Document, when executed and delivered by such Borrower in accordance with this Agreement, will constitute a valid and binding obligation of such Borrower, in each case enforceable in accordance with its terms, except as may be limited by 

 

  

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bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

Section  5.4 Financial Information.

 

(a)           The Audited Financial Statements applicable to such Borrower (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii) fairly present (A) in the case of TMCC, the consolidated financial position of TMCC and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for such fiscal year, (B) in the case of TFSUK, the consolidated financial position of TFSUK and its Consolidated Subsidiaries as of such date and their consolidated results of operations for such fiscal year, (C) in the case of TKG, the consolidated financial position of TKG and its Consolidated Subsidiaries as of such date and their consolidated results of operations for such fiscal year and (D) in the case of each other Borrower, the financial position of such Borrower as of such date and its results of operations and cash flow for such fiscal year.

 

(b)           Except as publicly disclosed, since the date of the Audited Financial Statements, there has been no material adverse change in the business, financial position or results of operations of such Borrower and its Consolidated Subsidiaries, considered as a whole.

 

Section  5.5 Litigation.  There is no action, suit or proceeding pending against, or to the knowledge of such Borrower threatened against or affecting, such Borrower or any of its Subsidiaries before any court, arbiter, or Governmental Authority in which there is a reasonable likelihood of an adverse decision which would have a Material Adverse Effect with respect to such Borrower, or which contests the validity of this Agreement or any Loan Document.

 

Section  5.6 Taxes.  Such Borrower has paid or caused to be paid all material taxes before the same have become delinquent, except any tax that is being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.

 

Section  5.7 Not an Investment Company.  Such Borrower is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section  5.8 Disclosure.  All written information heretofore furnished by such Borrower to the Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all such written information hereafter furnished by such Borrower to the Administrative Agent or any Lender will be true and accurate in every material respect, on the date as of which such information is delivered or certified; provided that, with respect to projected financial information, the Borrowers represent only that such information was prepared in good faith based upon assumptions believed by them to be reasonable at the time of preparation (it being understood that projections are not to be viewed as facts and that actual results may differ significantly from such projections).

 

Section  5.9 Representations as to Non-US Obligors.  Each of TMFNL, TFSUK, TLG, TCCI and TKG (each, a “Non-US Obligor”) additionally represents and warrants to the Administrative Agent and the Lenders that:

 

  

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(a)           Such Non-US Obligor is subject to Laws with respect to its obligations under this Agreement and the other Loan Documents to which it is a party (collectively as to such Non-US Obligor, the “Applicable Non-US Obligor Documents”), and the execution, delivery and performance by such Non-US Obligor of the Applicable Non-US Obligor Documents constitute and will constitute private and commercial acts and not public or governmental acts.  Neither such Non-US Obligor nor any of its property has any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which such Non-US Obligor is organized and existing in respect of its obligations under the Applicable Non-US Obligor Documents.

 

(b)           The Applicable Non-US Obligor Documents are in proper legal form under the Laws of the jurisdiction in which such Non-US Obligor is organized and existing for the enforcement thereof against such Non-US Obligor under the Laws of such jurisdiction, and to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Non-US Obligor Documents.  It is not necessary to ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Non-US Obligor Documents that the Applicable Non-US Obligor Documents be filed, registered or recorded with, or executed or notarized before, any court or other authority in the jurisdiction in which such Non-US Obligor is organized and existing or that any registration charge or stamp or similar tax be paid on or in respect of the Applicable Non-US Obligor Documents or any other document, except for (i) any such filing, registration, recording, execution or notarization as has been made or is not required to be made until the Applicable Non-US Obligor Document or any other document is sought to be enforced and (ii) any charge or tax as has been timely paid.

 

(c)           There are no Other Taxes imposed by any Governmental Authority in or of the jurisdiction in which such Non-US Obligor is organized and existing on or by virtue of the execution or delivery of the Applicable Non-US Obligor Documents.

 

(d)           The execution, delivery and performance of the Applicable Non-US Obligor Documents executed by such Non-US Obligor are, under applicable foreign exchange control regulations of the jurisdiction in which such Non-US Obligor is organized and existing, not subject to any notification or authorization except (i) such as have been made or obtained or (ii) such as cannot be made or obtained until a later date (provided that any notification or authorization described in clause (ii) shall be made or obtained as soon as is reasonably practicable).

 

Section  5.10 Representations as to TCPR.  TCPR additionally represents and warrants to the Administrative Agent and each Lender that it does not own directly or indirectly in accordance with the attribution rules of Section 1231(a)(3) of the Puerto Rico Code fifty percent (50%) or more of the value of the stock of any Lender.

 

  

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ARTICLE VI

 

COVENANTS

 

Each Borrower agrees that, so long as any Lender has any Commitment hereunder to such Borrower or any Loan or any Obligation of such Borrower hereunder shall remain unpaid or unsatisfied:

 

Section  6.1 Information.  Such Borrower will deliver to the Administrative Agent and each of the Lenders:

 

(a)           as soon as available and in any event within 180 days after the end of each fiscal year of such Borrower, a consolidated balance sheet or statement of financial position of such Borrower and its Consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of income (or comprehensive income) and cash flows for such fiscal year (to the extent that such Borrower is required to prepare statements of cash flows in accordance with GAAP), setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of nationally recognized standing;

 

(b)           as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of such Borrower, a consolidated balance sheet of such Borrower and its Consolidated Subsidiaries as of the end of such quarter and the related consolidated statements of income and cash flows for such quarter and for the portion of such Borrower’s fiscal year ended at the end of such quarter setting forth in the case of such statements of income and cash flow in comparative form the figures for the corresponding quarter and the corresponding portion of such Borrower’s fiscal year; provided, however, that no Borrower other than TMCC and TCPR shall be required to provide financial information under this subsection (b);

 

(c)           within 5 days after any officer of such Borrower obtains knowledge of any Default in respect of such Borrower, if such Default is then continuing, a certificate of a Responsible Officer of such Borrower setting forth the details thereof and the action which such Borrower is taking or proposes to take with respect thereto;

 

(d)           promptly after the same are available, copies of all registration statements (other than exhibits thereto and any registration statements (x) on Form S-3 or its equivalent or (y) in connection with asset securitization transactions) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents) which such Borrower shall have filed in the United States with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 and not otherwise required to be delivered to the Administrative Agent pursuant hereto; and

 

(e)           from time to time such additional information regarding the financial position or business of such Borrower and its Subsidiaries as the Administrative Agent, at the request of any Lender, may reasonably request.

 

Documents required to be delivered pursuant to Section 6.1(a), (b) or (d) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the earlier 

 

  

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of the date (i) on which such Borrower posts such documents, or provides a link thereto on such Borrower's website on the Internet at the website address listed on Schedule 9.2; (ii) on which such documents are posted on the Securities and Exchange Commission’s website (www.sec.gov) or on the website for the London Stock Exchange (www.londonstockexchange.com); or (iii) on which such documents are posted on such Borrower’s behalf on any website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website such as IntraLinks or DebtDomain or whether sponsored by the Administrative Agent); provided that (i) such Borrower shall deliver electronic copies of such documents to the Administrative Agent if any Lender requests such Borrower to deliver such copies, each time such request is made and (ii) such Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent, which shall notify the Lenders, of the posting of any such documents.  The Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by any Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

Each Borrower hereby acknowledges that (a) the Administrative Agent, the Sub-Agents and the Arrangers will make available to the Lenders materials and/or information provided by or on behalf of such Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to any of the Borrowers or their respective Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Administrative Agent, the Sub-Agents, the Arrangers and each Borrower hereby agree that (w) no Borrower Materials shall be made available to Public Lenders unless such Borrower has clearly and conspicuously marked such Borrower Materials “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrowers shall be deemed to have authorized the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrowers or their respective securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 9.8); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor;” and (z) the Administrative Agent, the Sub-Agents and the Arrangers shall treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”

Section  6.2 Maintenance of Property; Insurance.

 

(a)           Such Borrower will maintain, and will cause each Significant Subsidiary to maintain, all material property useful and necessary in the business of such Borrower and its Significant Subsidiaries, taken as a whole, in working order and condition, ordinary wear and tear excepted, except where failure to do so would not reasonably be expected to have a Material Adverse Effect with respect to such Borrower and its Subsidiaries, taken as a whole.

 

  

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(b)           Such Borrower will maintain, and will cause each Significant Subsidiary to maintain, with financially sound and reputable insurance companies insurance (including self-insurance) in such amounts and against such risks (and with such risk retention) as are usually insured against by companies engaged in the same or similar business and operating in the same or similar location as such Borrower or such Significant Subsidiary.

 

Section 6.3 Conduct of Business and Maintenance of Existence.  Such Borrower will continue, and will cause each Significant Subsidiary to continue, to engage principally in business of the same general type as conducted by such Borrower and its Significant Subsidiaries on the Closing Date and business reasonably related or incidental thereto and will preserve, renew and keep in full force and effect, and will cause each Significant Subsidiary to preserve, renew and keep in full force and effect, their respective corporate existence and their respective rights, privileges and franchises necessary or desirable in the normal conduct of business; provided that nothing in this Section 6.3 shall prohibit (i) any merger or consolidation involving such Borrower which is permitted by Section 6.6, (ii) the merger of a Significant Subsidiary into such Borrower or the merger or consolidation of a Significant Subsidiary with or into another Person if the corporation surviving such consolidation or merger is a Significant Subsidiary and if, in each case, after giving effect thereto, no Default with respect to such Borrower shall have occurred and be continuing or (iii) the termination of the corporate existence of any Significant Subsidiary if such Borrower in good faith determines that such termination is in the best interest of such Borrower and is not materially disadvantageous to the Lenders and provided further that neither such Borrower nor any of its Significant Subsidiaries shall be required to preserve any right, privilege or franchise if the board of directors (or equivalent governing body) of such Borrower or such Significant Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of such Borrower or such Significant Subsidiary, as the case may be, and that the loss thereof is not disadvantageous in any material respect to such Borrower or such Significant Subsidiary.

 

Section  6.4 Compliance with Laws.  Such Borrower will comply, and cause each Significant Subsidiary to comply, in all material respects with all applicable Laws (including, without limitation, Environmental Laws and ERISA and the rules and regulations thereunder) except where the necessity of compliance therewith is contested in good faith by appropriate proceedings.

 

Section  6.5 Negative Pledge.  Such Borrower will not pledge or otherwise subject to any lien any property or assets of such Borrower to secure any indebtedness for borrowed money incurred, issued, assumed or guaranteed by such Borrower unless the Loans and the Obligations of such Borrower under this Agreement are secured by such pledge or lien equally and ratably with all other indebtedness secured thereby so long as such other indebtedness shall be so secured; provided, however, that such covenant will not apply to liens securing indebtedness which do not in the aggregate at any one time outstanding exceed 20% of Net Tangible Assets (as defined below) of such Borrower and its Consolidated Subsidiaries and also will not apply to:

 

(a)           the pledge of any assets of such Borrower to secure any financing by such Borrower of the exporting of goods to or between, or the marketing thereof in, jurisdictions other than the United States (as to TMCC only), Puerto Rico (as to TCPR only), Canada (as to TCCI only), the Netherlands (as to TMFNL only), Germany (as to TKG and TLG only) and the United 

 

  

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Kingdom (as to TFSUK only) in connection with which such Borrower reserves the right, in accordance with customary and established banking practice, to deposit, or otherwise subject to a lien, cash, securities or receivables, for the purpose of securing banking accommodations or as the basis for the issuance of bankers’ acceptances or in aid of other similar borrowing arrangements;

 

(b)           the pledge of receivables of such Borrower payable in currencies other than US Dollars to secure borrowings in jurisdictions other than the United States (as to TMCC only), Puerto Rico (as to TCPR only), Canada (as to TCCI only), the Netherlands (as to TMFNL only), Germany (as to TKG and TLG only) and the United Kingdom (as to TFSUK only);

 

(c)           any deposit of assets of such Borrower in favor of any governmental bodies to secure progress, advance or other payments under a contract or statute;

 

(d)           any lien or charge on any property of such Borrower, tangible or intangible, real or personal, existing at the time of acquisition or construction of such property (including acquisition through merger or consolidation) or given to secure the payment of all or any part of the purchase or construction price thereof or to secure any indebtedness incurred prior to, at the time of, or within one year after, the acquisition or completion of construction thereof for the purpose of financing all or any part of the purchase or construction price thereof;

 

(e)           bankers’ liens or rights of offset (including any pledges further to general terms and conditions of a Dutch bank);

 

(f)           any lien securing the performance of any contract or undertaking not directly or indirectly in connection with the borrowing of money, obtaining of advances or credit or the securing of debt, if made and continuing in the ordinary course of business;

 

(g)           any lien to secure non-recourse obligations in connection with such Borrower’s engaging in leveraged or single-investor lease transactions;

 

(h)           any lien to secure payment obligations with respect to (x) rate swap transactions, swap options, basis swaps, forward rate transactions, commodity swaps, commodity options, equity or equity index swaps, equity or equity index options, bond options, interest rate options, foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, credit protection transactions, credit swaps, credit default swaps, credit default options, total return swaps, credit spread transactions, repurchase transactions, reverse repurchase transactions, buy/sell-back transactions, securities lending transactions, weather index transactions, or forward purchases or sales of a security, commodity or other financial instrument or interest (including any option with respect to any of these transactions), or (y) transactions that are similar to those described above;

 

(i)           for the avoidance of doubt, any lien or security interest granted or arising in connection with a bona fide securitization transaction by which such Borrower sells vehicle loan receivables, vehicle installment contracts, vehicle leases (together with or without the underlying vehicles), and/or other accounts receivable or assets, the records relating thereto and the proceeds, rights and benefits accruing to it thereunder (the “Securitized Assets”) and underlying 

 

  

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vehicles or assets if not included with the Securitized Assets to a trust or entity established for the purpose of, among other things, purchasing, holding or owning Securitized Assets; and

 

(j)           any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any lien, charge or pledge referred to in the foregoing clauses (a) to (i), inclusive, of this Section 6.5; provided, however, that the amount of any and all obligations and indebtedness secured thereby shall not exceed the amount thereof so secured immediately prior to the time of such extension, renewal or replacement and that such extension, renewal or replacement shall be limited to all or a part of the property which secured the charge or lien so extended, renewed or replaced (plus improvements on such property).

 

“Net Tangible Assets” means, with respect to any Borrower, the aggregate amount of assets (less applicable reserves and other properly deductible items) of such Borrower and its Consolidated Subsidiaries after deducting therefrom all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles of such Borrower and its Consolidated Subsidiaries, all as set forth on the most recent balance sheet of such Borrower and its Consolidated Subsidiaries prepared in accordance with GAAP.

 

Section  6.6 Consolidations. Mergers and Sales of Assets.  (a) Such Borrower shall not consolidate with or merge into any other Person or convey, transfer or lease (whether in one transaction or in a series of transactions) all or substantially all of its properties and assets to any Person, unless:

 

(i)           the Person formed by such consolidation or into which such Borrower is merged or the Person which acquires by conveyance or transfer, or which leases, all or substantially all of the properties and assets of such Borrower shall be a Person organized and existing under the Laws of the jurisdiction of organization of such Borrower, the United States of America, any State thereof, the District of Columbia or Puerto Rico or, in the case of TCCI, Canada or any province of Canada (the “Successor Corporation”) and shall expressly assume, by an amendment or supplement to this Agreement, signed by such Borrower and such Successor Corporation and delivered to the Administrative Agent, such Borrower’s obligation with respect to the due and punctual payment of the principal of and interest on all the Loans made to such Borrower and the due and punctual payment of all other Obligations payable by such Borrower hereunder and the performance or observance of every covenant herein on the part of such Borrower to be performed or observed;

 

(ii)           immediately after giving effect to such transaction and treating any indebtedness which becomes an obligation of such Borrower as a result of such transaction as having been incurred by such Borrower at the time of such transaction, no Default with respect to such Borrower shall have happened and be continuing;

 

(iii)           if, as a result of any such consolidation or merger or such conveyance, transfer or lease, properties or assets of such Borrower would become subject to a mortgage, pledge, lien, security interest or other encumbrance which would not be permitted by Section 6.5 hereof, such Borrower or the Successor Corporation, as the case may be, takes such steps as shall be necessary effectively to secure the Loans and the 

 

  

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Obligations of such Borrower under this Agreement equally and ratably with (or prior to) all indebtedness secured thereby; and

 

(iv)           such Borrower has delivered to the Administrative Agent a certificate signed by a Responsible Officer, together with, in the case of consolidation or merger in which such Borrower is not the surviving Person, a written opinion or opinions of counsel satisfactory to the Administrative Agent (who may be counsel to such Borrower), stating that such amendment or supplement to this Agreement complies with this Section 6.6 and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

(b)           Upon any consolidation or merger or any conveyance, transfer or lease of all or substantially all of the properties and assets of such Borrower in accordance with Section 6.6(a), the Successor Corporation shall succeed to, and be substituted for, and may exercise every right and power of, such Borrower under this Agreement and the Loans with the same effect as if the Successor Corporation had been named as a Borrower therein and herein, and thereafter, such Borrower, except in the case of a lease of such Borrower’s properties and assets, shall be released from its liability as obligor on any of the Loans and under this Agreement.

 

Section  6.7 Use of Proceeds.  The proceeds of the Loans made under this Agreement will be used by such Borrower for its general corporate purposes and will not be used, directly or indirectly, to support activity in or with a country officially sanctioned by the United States, the United Nations or the European Union, or to support activity with Persons subject to official sanctions imposed by the United States, the United Nations or the European Union, in each case by the Office of Foreign Assets Control as to sanctions imposed by the United States and as to similar sanctions imposed as to the United Nations or the European Union.  None of such proceeds will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate of buying or carrying any “margin stock” within the meaning of Regulation U.  After application of the proceeds of any Loan, not more than 25% of the assets of the Borrower of such Loan that are subject to a restriction on sale, pledge, or disposal under this Agreement will be represented by "margin stock," as that term is defined in Regulation U of the Board of Governors of the United States Federal Reserve System.  Subject to the other terms and conditions of this Agreement, such Borrower may request and use the proceeds of Loans of one Type to repay outstanding Loans of another Type.

 

 

ARTICLE VII

 

DEFAULTS

 

Section  7.1 Events of Default.  If one or more of the following events (“Events of Default”) shall have occurred and be continuing with respect to a Borrower:

 

(a)           such Borrower shall fail to pay when due any principal of any Loan made to it or shall fail to pay within 5 days of the due date thereof any interest on any Loan, any fees or any other amount payable by it hereunder;

 

(b)           such Borrower shall fail to observe or perform any covenant contained in Section 6.1(c), Section 6.5, Section 6.6 or Section 6.7;

 

  

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(c)           such Borrower shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those covered by clause (a) or (b) above) for 30 days after notice thereof has been given to such Borrower by the Administrative Agent at the request of any Lender;

 

(d)           any representation or warranty made by such Borrower in this Agreement or in any certificate or other document delivered pursuant to this Agreement shall prove to have been incorrect in any material respect when made (or deemed made);

 

(e)           indebtedness for borrowed money of such Borrower and any of its Subsidiaries in an aggregate outstanding amount in excess of (i) in the case of TMCC, US$250,000,000 or its Dollar Equivalent, (ii) in the case of TFSUK, TMFNL or TCCI, US$125,000,000 or its Dollar Equivalent and (iii) in the case of each other Borrower, US$75,000,000 or its Dollar Equivalent, shall not be paid when due or shall be accelerated prior to its stated maturity date and, within 10 days after written notice thereof is given to such Borrower(s) by the Administrative Agent, such indebtedness shall not be discharged or such acceleration shall not be rescinded or annulled;

 

(f)           such Borrower or any Significant Subsidiary of such Borrower shall commence or consent to the commencement of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; provided that, as to TKG, a mere notification of an imminent illiquidity pursuant to Section 46(b) sentence 1, second half sentence of the German Banking Act (Kreditwesengesetz) to BaFin shall not be an Event of Default;

 

(g)           any member of the ERISA Group shall fail to pay when due an amount or amounts aggregating in excess of US$250,000,000 which it shall have become liable to pay under Title IV of ERISA or as a result of one or more of the following:  (i) termination of a Plan  by any member of an ERISA Group, any plan administrator or any combination of the foregoing; (ii) the PBGC instituting proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer any Plan, or the PBGC being entitled to obtain a decree adjudicating that any Plan must be terminated; or (iii) a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which would cause one or more members of the ERISA Group to incur a current payment obligation in excess of $250,000,000; provided that no Default or Event of Default under this section 7.1(g) shall be deemed to have occurred if any Borrower or member of the ERISA Group shall have made arrangements satisfactory to the PBGC and the Required Lenders to discharge or otherwise satisfy such liability (including by the posting of a bond or other security);

 

  

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(h)           judgments or orders for the payment of money in excess of (i) in the case of TMCC, US$250,000,000 or its Dollar Equivalent, (ii) in the case of TFSUK, TMFNL or TCCI, US$125,000,000 or its Dollar Equivalent and (iii) in the case of each other Borrower, US$75,000,000 or its Dollar Equivalent, in the aggregate shall be rendered against such Borrower or any Significant Subsidiary of such Borrower and such judgments or orders shall continue unsatisfied and unstayed for a period of 60 days; or

 

(i)           such Borrower shall cease to be a TMC Consolidated Subsidiary;

 

then, and in every such event, the Administrative Agent shall, at the request of, or may, with the consent of, the applicable Required Lenders and after notice to TMCC and the applicable Borrower (i) terminate the commitment of each Lender to make Loans to such Borrower, and they shall thereupon terminate, and (ii) declare the unpaid principal amount of all outstanding Loans made to such Borrower, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document by such Borrower to be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by each Borrower; provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans to such Borrower shall automatically terminate, the unpaid principal amount of all outstanding Loans made to such Borrower and all interest and other amounts as aforesaid shall automatically become due and payable.

 

Section 7.2 Application of Funds. After the exercise of remedies provided for in Section 7.1 (or after the Loans have automatically become immediately due and payable), any amounts received on account of the Obligations of any Borrower shall be applied by the Administrative Agent in the following order:

First, to payment of that portion of the Obligations of such Borrower constituting fees, indemnities, expenses and other amounts (including Attorney Costs and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

Second, to payment of that portion of the Obligations of such Borrower constituting fees, indemnities and other amounts (other than principal and interest) payable to the appropriate Lenders (including Attorney Costs and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them;

Third, to payment of that portion of the Obligations of such Borrower constituting accrued and unpaid interest on the Loans, ratably among the appropriate Lenders in proportion to the respective amounts described in this clause Third payable to them;

Fourth, to payment of that portion of the Obligations of such Borrower constituting unpaid principal of the Loans, ratably among the appropriate Lenders in proportion to the respective amounts described in this clause Fourth held by them; and

Last, the balance, if any, after all of the Obligations of such Borrower have been indefeasibly paid in full, to such Borrower or as otherwise required by Law.

  

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ARTICLE VIII

 

THE ADMINISTRATIVE AGENT

 

           Section 8.1 Appointment and Authorization of Administrative Agent.  Each Lender hereby irrevocably appoints, designates and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.  Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

           Section 8.2 Delegation of Duties.  The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

           Section 8.3 Liability of Administrative Agent. No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct in connection with its duties expressly set forth herein) or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Borrower or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Borrower or any Affiliate thereof.

 

  

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Section 8.4 Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, facsimile or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Borrowers), independent accountants and other experts selected by the Administrative Agent.  The Administrative Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the applicable Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the applicable Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders.

Section 8.5 Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written notice from a Lender or a Borrower referring to this Agreement, describing such Default and stating that such notice is a “notice of default.”  The Administrative Agent will notify the Lenders of its receipt of any such notice.  The Administrative Agent shall take such action with respect to such Default as may be directed by the applicable Required Lenders in accordance with Article VII; provided, however, that unless and until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable or in the best interest of the Lenders.

 

Section 8.6 Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by the Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Borrower or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession.  Each Lender acknowledges that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of each Borrower, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to a Borrower hereunder.  Each Lender also acknowledges that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and 

 

  

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to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of each Borrower.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any Borrower or any of its Affiliates which may come into the possession of any Agent-Related Person.

Section 8.7 Indemnification of Administrative Agent.  Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of the Borrowers and without limiting the obligation of the Borrowers to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from such Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the applicable Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section; provided, further, that such Indemnified Liability was incurred by or asserted against such Agent-Related Person acting as or for the Administrative Agent in connection with such capacity.  Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrowers.  The undertaking in this Section shall survive termination of the Aggregate Commitments, the payment of all other Obligations and the resignation of the Administrative Agent.

Section 8.8 Administrative Agent in its Individual Capacity.  BNP Paribas and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with each Borrower and its Affiliates as though BNP Paribas were not the Administrative Agent hereunder and without notice to or consent of the Lenders.  The Lenders acknowledge that, pursuant to such activities, BNP Paribas or its Affiliates may receive information regarding a Borrower or any of its Affiliates (including information that may be subject to confidentiality obligations in favor of a Borrower or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them.  With respect to its Loans, BNP Paribas shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not the Administrative Agent, and the terms “Lender” and “Lenders” include BNP Paribas in its individual capacity.

 

  

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Section 8.9 Successor Administrative Agent and Sub-Agents.  (a) The Administrative Agent and each Sub-Agent may resign as Administrative Agent or Sub-Agent, as applicable, upon 30 days’ notice to the applicable Lenders.  If (i) the Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor administrative agent for the Lenders, which such successor administrative agent shall have entered into a licensing arrangement with Markit Group Ltd., (ii) the Canadian Sub-Agent resigns, the Required Lenders referred to in paragraph (a) in the definition of “Required Lenders” shall appoint from among the Tranche B Lenders a successor Canadian sub-agent, which shall be a bank that is not a non-resident of Canada for purposes of Part XIII of the Canadian ITA and (iii) any Swing Line Agent resigns, the Required Lenders shall appoint from among the Swing Line Lenders a successor replacement Swing Line agent, which shall be a bank with an office in the United Kingdom, United States or Canada, as applicable, or an Affiliate of any such bank with an office in the United Kingdom, United States or Canada, as applicable, which successor, in each case, shall consent to such appointment and shall be consented to by the Borrowers in writing at all times other than during the existence of an Event of Default (which consent of the Borrowers shall not be unreasonably withheld).  If no such successor is so appointed prior to the effective date of the resignation of the Administrative Agent or applicable Sub-Agent, the Administrative Agent or Sub-Agent, as applicable, may appoint, after consulting with the Lenders and the Borrowers, a successor which meets the qualifications set forth above and consents to the appointment.  Upon the acceptance of its appointment as successor administrative agent or sub-agent hereunder, the Person acting as such successor administrative agent or sub-agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent or Sub-Agent and the term “Administrative Agent” or “Sub-Agent”, as applicable, shall mean such successor administrative agent or sub-agent, and the retiring Administrative Agent’s or Sub-Agent’s appointment, powers and duties as Administrative Agent or Sub-Agent (and, in the case of the Administrative Agent, the Administrative Agent’s licensing arrangement with Markit) shall be terminated.  After any retiring Administrative Agent’s or Sub-Agent’s resignation hereunder as Administrative Agent or Sub-Agent, the provisions of this Article VIII and Sections 9.4 and 9.5 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent or Sub-Agent under this Agreement.  If no successor administrative agent or sub-agent, as applicable, has accepted appointment as Administrative Agent or Sub-Agent by the date which is 30 days following a retiring Administrative Agent’s or Sub-Agent’s notice of resignation, the retiring Administrative Agent’s or Sub-Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Administrative Agent or Sub-Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.

(b) Notwithstanding anything to the contrary contained herein, if at any time BNP Paribas assigns all of its Commitments and Committed Loans pursuant to subsection 9.7(b), BNP Paribas and its Affiliates may, upon 30 days’ notice to the Borrowers, each resign as Swing Line Agent and Swing Line Lender.  In the event of any such resignation as Swing Line Agent and Swing Line Lender, the Borrowers shall be entitled to appoint from among the Lenders successor Swing Line Agent(s) and successor Swing Line Lender hereunder; provided, however, that such successor Swing Line Agent(s) or successor Swing Line Lender consents to such appointment; and provided further, however, that no failure by the Borrowers to appoint any such successor shall affect the resignation of BNP Paribas and its Affiliates as such Swing Line Agent and 

 

  

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Swing Line Lender.  If BNP Paribas (and its Affiliates) resigns as a Swing Line Agent and Swing Line Lender, it shall retain all the rights of such Swing Line Agent and Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Committed Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.16(c).  Upon the appointment of successor Swing Line Agent(s) and Swing Line Lender, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Swing Line Agents and Swing Line Lender.

Section 8.10 Administrative Agent May File Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to a Borrower, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on such Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

(a)           to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing by such Borrower and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 2.8 and Section 9.4) allowed in such judicial proceeding; and

(b)           to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 2.8 and Section 9.4.  Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

Section 8.11 Other Agents, Arrangers and Managers.  None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a “syndication agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as such.  

 

  

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Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

Section 8.12 Canadian Sub-Agent.  The Canadian Sub-Agent is not a non-resident of Canada for purposes of Part XIII of the Canadian ITA and, as such, it and not the Administrative Agent has been designated under this Agreement to carry out certain duties of the Administrative Agent in respect of TCCI.  The Canadian Sub-Agent shall be subject to each of the obligations in this Agreement to be performed by the Administrative Agent, and each of TCCI and the Tranche B Lenders agrees that the Canadian Sub-Agent shall be entitled to exercise each of the rights and shall be entitled to each of the benefits of the Administrative Agent under this Agreement as relate to the performance of its obligations hereunder.  References in Sections 2.15 and 3.1 and in the definition of “Taxes” in Section 1.1 to the Administrative Agent shall also include the Canadian Sub-Agent.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1 Amendments, Etc.  Except as otherwise set forth in the last sentence of this Section, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by any Borrower therefrom, shall be effective unless in writing signed by the applicable Required Lenders and the applicable Borrower, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:

(a)           waive any condition set forth in Section 4.1(a) without the written consent of each Lender;

(b)           extend or increase the Commitment or Commitment Cap of any Lender (or reinstate any Commitment terminated pursuant to Section 7.1) without the written consent of such Lender;

(c)           postpone any date fixed by this Agreement or any other Loan Document for any scheduled payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;

(d)           reduce the principal of, or the rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the applicable Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of any Borrower to pay interest at the Default Rate;

 

  

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(e)           change Section 2.12 or Section 7.2 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each affected Lender;

(f)           amend Section 1.6 or the definition of “Alternative Currency” without the written consent of each Lender; or

(g)           change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender that has a Commitment under the affected Tranche;

provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; (ii) no amendment, waiver or consent shall, unless in writing and signed by a Swing Line Lender in addition to the Lenders required above, affect the rights or duties of such Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the applicable Swing Line Agent in addition to the Lenders required above, affect the rights or duties of such Swing Line Agent under this Agreement; and (iv) each Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary herein, any amendment or waiver of any term of any Money Market Loan (except the increase in the principal amount thereof or the extension of any Interest Period until after the Revolving Maturity Date applicable to the Borrower of such Loan) made by a Lender hereunder shall be effective if signed by such Lender and the applicable Borrower and acknowledged by the Administrative Agent.

Section 9.2 Notices and Other Communications; Facsimile Copies. 

(a)           General.  Unless otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including by facsimile transmission),all such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to subsection (c) below) electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

(i)           if to a Borrower, the Administrative Agent or any Swing Line Agent, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 9.2 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; and

(ii)           if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the Borrowers and the Administrative Agent.

 

  

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Except as otherwise set forth herein, all such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail (subject to the provisions of subsection (c) below), when delivered; provided, however, that notices and other communications to the Administrative Agent pursuant to Article II shall not be effective until actually received by such Person.  In no event shall a voicemail message be effective as a notice, communication or confirmation hereunder.

(b)           Effectiveness of Facsimile Documents and Signatures.  Loan Documents may be transmitted and/or signed by facsimile.  The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually-signed originals and shall be binding on the Borrowers, the Administrative Agent, the applicable Swing Line Agent(s) and the Lenders.  The Borrowers may also require that any such documents and signatures be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature.

(c)           Use of Electronic Mail. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent, any Swing Line Agent or any Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

(d)           Reliance by Administrative Agent, the Swing Line Agents and Lenders. The Administrative Agent, the Swing Line Agents and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of a Responsible Officer of a Borrower or any other Person designated in writing by a Responsible Officer of a Borrower to the Administrative Agent and the applicable Swing Line Agent even if (i) such notices were not otherwise made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrowers shall indemnify each Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of a Responsible Officer of a Borrower or any other Person designated in writing by a Responsible Officer of a Borrower to the Administrative Agent.  All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

(e)           Designation of Representative for Borrowers. Each of TMCC, TCPR and TCCI (each, an “Other Borrower”), by its execution of this Agreement, hereby irrevocably appoints 

 

  

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each of TMCC and TMFNL, acting alone, and with full power of substitution, as its agent and representative hereunder (in such capacity, each a “Borrowers’ Representative”), and hereby authorizes, directs and empowers each of TMCC and TMFNL, acting alone, and with full power of substitution, to act for and in the name of such Other Borrower and as its agent and representative hereunder and under the other instruments and agreements referred to herein.  TMCC and TMFNL hereby accept each such appointment.  Each Other Borrower hereby irrevocably authorizes each of TMCC and TMFNL, acting alone and with full power of substitution, to take such action on such Other Borrower’s behalf and to exercise such powers hereunder, under the other Loan Documents, and under the other agreements and instruments referred to herein or therein as may be contemplated being taken or exercised by such Other Borrower by the terms hereof and thereof, together with such powers as may be incidental thereto, including, without limitation, to borrow hereunder and deliver Requests for Loans hereunder, to convert, continue, repay or prepay Loans made hereunder, to increase, reduce or terminate the Commitments, to pay interest, fees, costs and expenses incurred in connection with the Loans, this Agreement, the other Loan Documents, and the other agreements and instruments referred to herein or therein, to receive from or deliver to the Administrative Agent or any Sub-Agent any notices, statements, reports, certificates or other documents or instruments contemplated herein, in the other Loan Documents or in any other agreement or instrument referred to herein, to receive from or transmit to the Administrative Agent or any Sub-Agent any Loan proceeds or payments, and to execute any agreements, amendments, modifications, supplements or other documents or instruments in connection with this Agreement or the other Loan Documents on its behalf, and in each case such Other Borrower shall be bound as though the Other Borrower itself had duly taken such action.  The Administrative Agent, each Sub-Agent and each Lender shall be entitled to rely on the appointment and authorization of each Borrowers’ Representative with respect to all matters related to this Agreement, the other Loan Documents and any other agreements or instruments referred to herein or therein whether or not any particular provision hereof or thereof specifies that such matters may or shall be undertaken by Borrowers’ Representative.  In reliance hereon, the Administrative Agent, each Sub-Agent and each Lender may deal with either of the Borrowers’ Representatives alone with the same effect as if the Administrative Agent, such Sub-Agent or such Lender had dealt with each Other Borrower separately and individually.  In the event of any conflict between any notices, communications or other acts of the Borrowers’ Representative and those of any Other Borrower, the notices, communications and acts of the Borrowers’ Representative shall prevail; provided, however, that nothing in this Section 9.2(e) shall authorize either Borrowers’ Representative to deliver a notice required to be delivered pursuant to Section 6.1(d) or (f) on behalf of an Other Borrower, and the parties hereto acknowledge that any notice required to be delivered pursuant to Section 6.1(d) or (f) by a Borrower pursuant to this Agreement must be provided directly by a Responsible Officer of such Borrower.

Section 9.3 No Waiver; Cumulative Remedies.  No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.

 

  

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Section 9.4 Attorney Costs and Expenses.  The Borrowers agree (a) to pay or reimburse the Administrative Agent for all reasonable and demonstrable costs and expenses incurred in connection with the development, preparation, negotiation and execution of this Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of the provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the consummation and administration of the transactions contemplated hereby and thereby, including all Attorney Costs of a single counsel (and one local counsel in each jurisdiction where required or other additional counsel to the extent required due to a conflict of interest), and (b) to pay or reimburse the Administrative Agent and each Lender for all costs and expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any rights or remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any “workout” or restructuring in respect of the Obligations and during any legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney Costs.  The foregoing costs and expenses shall include all reasonable search and filing charges and fees and taxes related thereto, and other reasonable out-of-pocket expenses incurred by the Administrative Agent and the reasonable cost of independent public accountants and other outside experts retained by the Administrative Agent or any Lender.  All amounts due under this Section 9.4 shall be payable within 15 Business Days after delivery to the Borrowers of a certificate setting forth in reasonable detail the basis for the amounts demanded.  The agreements in this Section shall survive the termination of the Aggregate Commitments and repayment of all other Obligations.  Notwithstanding anything to the contrary contained in this Agreement, (i) this Section 9.4 shall not govern any indemnification or other amounts relating to or attributable to taxes, and (ii) all indemnification and other amounts relating or attributable to taxes shall be governed solely and exclusively by Section 3.1.

Section 9.5 Indemnification by the Borrowers.  (a)  Whether or not the transactions contemplated hereby are consummated, the Borrowers shall indemnify and hold harmless each Agent-Related Person, each Lender and their respective Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever (collectively “Losses”) which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Commitment, Loan or the use or proposed use of the proceeds therefrom, or (c) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or 

 

  

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willful misconduct of such Indemnitee.  No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee have any liability for any indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date).

 

(b)           An Indemnitee shall give prompt notice to the Borrowers of any claim asserted in writing, or the commencement of any action or proceeding, in respect of which indemnity may be sought hereunder.  All amounts due under this Section 9.5 shall be payable within 10 Business Days after the Borrowers receive demand therefor setting forth in reasonable detail the basis for such demand.

 

(c)           In the case of an investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Borrower, any Borrower’s equityholders or creditors or an Indemnitee or any other person or entity, whether or not an Indemnitee is otherwise a party thereto.

 

(d)           The agreements in this Section shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

 

(e)           Notwithstanding the foregoing, the Borrowers shall not, in connection with any single proceeding or series of related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm or internal legal department (in addition to any local counsel) for all Indemnitees, such firm or internal legal department to be selected by the Administrative Agent; provided that if an Indemnitee shall have reasonably concluded that (i) there may be legal defenses available to it which are different from or additional to those available to other Indemnitees and may conflict therewith or (ii) the representation of such Indemnitee and the other Indemnitees by the same counsel would otherwise be inappropriate under applicable principles of professional responsibility, such Indemnitee shall have the right to select and retain separate counsel to represent such Indemnitee in connection with such proceeding(s) at the expense of the Borrowers.  Notwithstanding anything to the contrary contained in this Agreement, (i) this Section 9.5 shall not govern Losses or other amounts relating to or attributable to taxes, and (ii) all Losses and other amounts relating or attributable to taxes shall be governed solely and exclusively by Section 3.1.

Section 9.6 Payments Set Aside.  To the extent that any payment by or on behalf of any Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises any right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such set-off had not 

 

  

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occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Overnight Rate from time to time in effect, in the applicable currency of such recovery or payment.

Section 9.7 Successors and Assigns.

(a)           The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (g) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.

(b)           Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Committed Loans (including for purposes of this subsection (b), participations in Swing Line Loans) at the time owing to it); provided that any assignment shall be subject to the following additional conditions:  (i) so long as no Event of Default has occurred and is continuing in respect of a Borrower, such Borrower consents to the assignment (such consent not to be unreasonably withheld or delayed); (ii) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Committed Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund (as defined in subsection (i) of this Section) with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Committed Loans outstanding thereunder) subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than US$10,000,000 (provided that, in the case of TMFNL, such amount shall not be less than the Dollar Equivalent of EUR 100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht)) unless the Administrative Agent otherwise consents (such consent not to be unreasonably withheld or delayed); (iii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Committed Loans or the Commitment assigned; (iv) any assignment of a Commitment must be approved by the Administrative Agent (which approval shall not be unreasonably withheld or delayed) unless the Person that is the proposed assignee is itself a Lender or an Affiliate of a Lender (whether or not 

 

  

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the proposed assignee would otherwise qualify as an Eligible Assignee); (v) if the assigning Lender has a Commitment in more than one Tranche, such Lender shall make a pro rata assignment to its assignee of its Commitments under each such Tranche; and (vi) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of US$3,500, which fee may be waived by the Administrative Agent in its sole discretion.  Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 3.1 (with respect to periods it was a Lender), 3.4, 3.5, 9.4 and 9.5 with respect to facts and circumstances occurring prior to the effective date of such assignment).  Upon request, each Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.  If the Eligible Assignee is required to deliver documents pursuant to Section 9.15, it shall deliver those documents to the applicable Borrower and the Administrative Agent in accordance with Section 9.15.

(c)           The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrowers, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans owing to each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrowers, the Administrative Agent 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, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

(d)           Any Lender may at any time, without the consent of, or notice to, any Borrower, the Administrative Agent or Swing Line Lender, sell participations to any Person (other than a natural person or a Borrower or any of the Borrowers’ Affiliates) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) in the case of TMFNL, the amount of such participations sold shall not be less than the Dollar Equivalent of EUR 100,000 or any other amount as at any time set forth in the definition of “professional market party” under or pursuant to the Netherlands Financial Supervision Act (wet op het financieel toezicht) and (iv) the 

 

  

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Borrowers, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 9.1 that directly affects such Participant.  Subject to subsection (e) of this Section, the Borrowers agree that each Participant shall be entitled to the benefits of Sections 3.1, 3.4 and 3.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 9.9 as though it were a Lender, provided such Participant agrees to be subject to Section 2.12 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

(e)           A Participant shall not be entitled to receive any greater payment under Section 3.1 or Section 3.4 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant unless the sale of the participation to such Participant is made with the Borrowers’ prior written consent.  A Participant shall not be entitled to the benefits of Section 3.1 unless the Borrowers are notified of the participation sold to such Participant and such Participant agrees, for the benefit of each Borrower, to comply with Section 9.15 as though it were a Lender.

(f)           Each Lender that sells a participation interest in all or a portion of such Lender’s rights and obligations under this Agreement shall record, acting solely for this purpose as non-fiduciary agent of the Borrowers, in book entries (as defined in Temporary Treasury Regulation §5f.103-1) maintained by such Lender the name and the amount of the participating interest of each Participant entitled to receive payments in respect of such participating interest.

(g)           Any Lender may at any time, without the consent of, or notice to, any Borrower or the Administrative Agent, pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, 

 

  

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including any pledge or assignment to secure obligations to a Federal Reserve Bank or any central bank having jurisdiction over such Lender; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

(h)           Where a Lender (the “Designating Lender”) has designated in its Administrative Questionnaire an Affiliate of the Designating Lender as the entity which shall participate in or make Loans to a particular Borrower (i) the Commitment shall be held by the Designating Lender, (ii) such Affiliate shall be entitled to all rights and benefits (other than voting rights, which remain with the Designating Lender) under this Agreement relating to its participation in any Loan and (iii) the Designating Lender shall procure that such Affiliate complies with the corresponding duties in relation to such Loan.

(i)           As used herein, the following terms have the following meanings:

“Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent and (ii) unless an Event of Default with respect to such Borrower has occurred and is continuing, the applicable Borrower (each such approval not to be unreasonably withheld or delayed); provided that, notwithstanding the foregoing (x) no Person shall qualify as an Eligible Assignee without the approval of each Swing Line Lender (such approval not to be unreasonably withheld or delayed), (y) “Eligible Assignee” shall not include a Borrower or any of the Borrowers’ Affiliates and (z) “Eligible Assignee” shall not include any Person that is not a regulated lending institution in the United States, Canada, Japan, Australia or the European Union.

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

Section 9.8 Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent requested by any regulatory authority or self-regulatory body, including in connection with a pledge or assignment in accordance with Section 9.7(g); (c) to the extent required by applicable Laws or by any subpoena or similar legal process provided that the Borrowers are given prompt notice of such subpoena or other process (unless the Administrative Agent or Lender is legally prohibited from giving such notice); (d) to any other party to this Agreement; (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights 

 

  

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hereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction relating to obligations of a Borrower; (g) with the consent of the applicable Borrower; (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than a Borrower; or (i) to the National Association of Insurance Commissioners or any other similar organization.  In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers to the Administrative Agent and the Lenders in connection with the administration and management of this Agreement, the other Loan Documents, the Commitments, and the Loans.  For the purposes of this Section, “Information” means all information received from a Borrower relating to such Borrower or its business, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by such Borrower; provided that, in the case of information received from a Borrower after the date hereof, such information is clearly identified in writing at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

Section 9.9 Set-off.  Upon the occurrence and during the continuance of any Event of Default with respect to a Borrower, nothing in this Agreement shall preclude any Lender, at any time and from time to time, from exercising any right of set off, counterclaim, or other rights it may have otherwise than under this Agreement and or from applying amounts realized against any and all Obligations owing by such Borrower to such Lender hereunder or under any other Loan Document, now or hereafter existing.  Each Lender agrees promptly to notify the applicable Borrower and the Administrative Agent after any such set-off and application made by such Lender; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application.

Section 9.10 Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the applicable Borrower.

           Section 9.11 Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

  

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           Section 9.12 Integration.  This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement.  Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

Section 9.13 Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Borrowing and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

           Section 9.14 Severability. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

           Section 9.15 Tax Forms.

 

(a)           (i)  Each Tranche A Lender that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code (a “Foreign Lender”) shall deliver to TMCC (with a copy to the Administrative Agent), prior to becoming a party to this Agreement (or upon accepting an assignment of an interest herein) two duly signed completed copies of (x) IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to an exemption from, or reduction of, withholding tax on payments to be made to such Foreign Lender pursuant to this Agreement), (y) IRS Form W-8ECI or any successor thereto (relating to payments to be made to such Foreign Lender pursuant to this Agreement) or (z) such other evidence satisfactory to TMCC and the Administrative Agent that such Foreign Lender is entitled to an exemption from, or reduction of, U.S. withholding tax, including any exemption pursuant to Section 881(c) of the Code.  Thereafter and from time to time, and as reasonably requested by TMCC in writing, each such Foreign Lender shall, to the extent it may lawfully do so, (A) promptly submit to TMCC (with a copy to the Administrative Agent) such additional duly completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may then be available under then current United States Laws and regulations to avoid, or such evidence as is 

 

  

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satisfactory to TMCC of any available exemption from or reduction of, United States withholding taxes in respect of all payments to be made to such Foreign Lender by TMCC pursuant to this Agreement, (B) promptly notify the Administrative Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable Laws that TMCC make any deduction or withholding for or on account of United States taxes from amounts payable to such Foreign Lender.  In addition, in relation to all payments to be made to a Tranche A Lender by TFSUK, such Lender shall cooperate, to the extent it is able to do so, with TFSUK in completing any procedural formalities necessary for TFSUK to obtain authorization to make such a payment without a deduction or withholding for or on account of UK Taxes including, to the extent reasonably practicable, making and filing an appropriate application for relief under a double taxation agreement; provided that, nothing in this Section 9.15(a)(i) shall require a UK Treaty Lender to register under the HMRC DT Treaty Passport scheme or apply the HMRC DT Treaty Passport scheme to any loan if it has so registered; provided further that a UK Treaty Lender which holds a passport under the HMRC DT Treaty Passport scheme and enters into this Agreement acknowledges that such scheme shall not apply to this Agreement in respect of a loan made to TFSUK.

(ii)           [Reserved].

(iii)           With respect to each Tranche A Lender, to the extent under applicable law such Lender can provide TKG and TLG with a certificate, statement or form required by the German taxing authorities in order to be eligible for exemption from, or reduction of, withholding taxes under German tax law, such Lender shall execute and deliver such certificate, statement or form at the time it becomes a party to this Agreement and from time to time as reasonably requested by TKG or TLG.

(iv)          As of the date that each Lender becomes a Tranche A Lender under this Agreement, each such Lender represents and warrants to the Administrative Agent and TCPR that it is an Exempt Lender and agrees that, if Puerto Rico or United States taxing authorities at any time after the date of this Agreement require that such Lender deliver any certificate, statement or form as a condition to exemption from, or reduction of, withholding taxes under the Puerto Rico Code or the Code on any payments by TCPR to such Lender under this Agreement, such Lender shall deliver such certificate, statement or form to the Administrative Agent prior to becoming a party to this Agreement (or upon accepting an assignment of an interest herein).  Thereafter and from time to time or as reasonably requested by TCPR in writing, each such Lender, to the extent it may lawfully do so, shall (A) promptly submit to TCPR (with a copy to the Administrative Agent) such duly completed and signed certificates, statements or forms as shall be adopted from time to time by the relevant Puerto Rico or United States taxing authorities and such other evidence as is satisfactory to TCPR of any available exemption from, or reduction of, Puerto Rico and United States withholding taxes in respect of all payments to be made to such Lender by TCPR pursuant to this Agreement, (B) promptly notify the Administrative Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such 

 

  

88

  

 

Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable Laws that TCPR make any deduction or withholding on or account of Puerto Rico taxes from amounts payable to such Lender.

(v)           If a payment made to the Administrative Agent or a Tranche A Lender hereunder would be subject to U.S. federal withholding tax imposed by FATCA if the Administrative Agent or such Tranche A Lender were to fail to comply with the applicable requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Administrative Agent or such Tranche A Lender shall deliver to TMCC and the Administrative Agent, as applicable, at the time or times prescribed by law and at such time or times reasonably requested by TMCC or the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by TMCC or the Administrative Agent as may be necessary for TMCC or the Administrative Agent to comply with its obligations under FATCA, to determine that the Administrative Agent or such Tranche A Lender has complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment.

(vi)          Each Lender, to the extent it does not act or ceases to act for its own account with respect to any portion of any sums paid or payable to such Lender under any of the Loan Documents (for example, in the case of a typical participation by such Lender), shall deliver to TMCC (with a copy to the Administrative Agent) on the date when such Lender ceases to act for its own account with respect to any portion of any such sums paid or payable, and at such other times as may be necessary in the determination of TMCC or the Administrative Agent (in the reasonable exercise of its discretion), (A) two duly signed completed copies of the certificates, statements or forms required to be provided by such Lender as set forth above, to establish the portion of any such sums paid or payable with respect to which such Lender acts for its own account that is not, in the case of a Tranche A Lender, subject to Puerto Rico or United States withholding tax; and (B) any information such Lender chooses to transmit with such certificates, statements or forms, and any other certificate or statement of exemption required under the Code.

(vii)         No Borrower (other than TFSUK) shall be required to pay any additional amount to any Lender under Section 3.1 (A) with respect to any Taxes required to be deducted or withheld on the basis of the information, certificates or statements of exemption such Lender transmits pursuant to this Section 9.15(a) or (B) if such Lender shall have failed to satisfy its obligations under this Section 9.15(a); provided that if such Lender shall have satisfied the requirement of this Section 9.15(a) on the date such Lender became a Lender or ceased to act for its own account with respect to any payment under any of the Loan Documents, nothing in this Section 9.15(a) shall relieve such Borrower of its obligation to pay any amounts pursuant to Section 3.1 in the event that, as a result of any change in any applicable Law, treaty or governmental rule, regulation or order, or any change in the interpretation, administration or application thereof, such Lender is no longer properly entitled to deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents is not subject to withholding or is subject to withholding at a reduced rate.

 

  

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(viii)           The Administrative Agent may, without reduction, withhold any Taxes required to be deducted and withheld from any payment under any of the Loan Documents with respect to which a Borrower is not required to pay additional amounts under this Section 9.15(a).

(b)           Upon the request of TMCC or the Administrative Agent in writing, each Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Code shall deliver to the Administrative Agent two duly signed completed copies of IRS Form W-9.  If such Lender fails to deliver such forms, then TMCC or the Administrative Agent may withhold from any interest payment to such Lender an amount equivalent to the applicable back-up withholding tax imposed by the Code and no party hereto shall have any obligation to pay any additional amount to any Lender under Section 3.1 in respect of such withholding.

(c)           If any Governmental Authority asserts that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Lender, such Lender shall indemnify the Administrative Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Administrative Agent under this Section, and costs and expenses (including Attorney Costs) of the Administrative Agent.  The obligation of the Lenders under this Section shall survive the termination of the Aggregate Commitments, repayment of all other Obligations hereunder and the resignation of the Administrative Agent.

           Section 9.16 Replacement of Lenders.  Under any circumstances set forth herein providing that a Borrower shall have the right to replace a Lender as a party to this Agreement and (i) if any Lender is a Defaulting Lender or (ii) any Lender fails to consent to an amendment, modification or waiver of this Agreement, or to a request that Eurocurrency Rate Loans be made in a currency other than those specifically listed in the definition of “Alternative Currency”, that pursuant to the terms hereof requires consent of all of the Lenders or all of the Lenders affected thereby (provided that, (x) such amendment, modification, waiver or currency request has been consented to by the Required Lenders and (y) all such non-consenting Lenders are replaced on the same terms), TMCC may, upon notice to such Lender and the Administrative Agent, replace such Lender by causing such Lender to assign its Commitment (with the assignment fee to be paid by TMCC in such instance) pursuant to Section 9.7(b) to one or more other Lenders or Eligible Assignees procured by TMCC; provided, however, that if TMCC elects to exercise such rights with respect to any Lender pursuant to Section 3.6(c), it shall be obligated to replace all Lenders that have made similar requests for compensation pursuant to Section 3.1 or 3.4.  The applicable Borrower shall (y) pay in full all principal, accrued interest, accrued fees and other amounts owing to such Lender through the date of replacement (including any amounts payable pursuant to Section 3.5) and (z) release such Lender from its obligations under the Loan Documents.  Any Lender being replaced shall execute and deliver an Assignment and Assumption with respect to such Lender’s Commitment and outstanding Loans.

           Section 9.17 Governing Law.

(a)           THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW 

 

  

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YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

(b)           ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE COUNTY OF NEW YORK IN THE CITY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.  EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

(c)           EACH BORROWER OTHER THAN TMCC HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS TMCC, IN THE CASE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED STATES OF AMERICA AS ITS DESIGNEE, APPOINTEE AND AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS THAT MAY BE SERVED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY LOAN DOCUMENT, AND TMCC HEREBY IRREVOCABLY ACCEPTS SUCH DESIGNATION, APPOINTMENT AND EMPOWERMENT.  SUCH SERVICE MAY BE MADE BY MAILING (BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) OR DELIVERING A COPY OF SUCH PROCESS TO SUCH BORROWER IN CARE OF TMCC AT TMCC’S ADDRESS SPECIFIED IN SCHEDULE 9.2, AND EACH BORROWER HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS TMCC TO ACCEPT SUCH SERVICE ON ITS BEHALF.  AS AN ALTERNATIVE METHOD OF SERVICE, THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING (BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) OF COPIES OF SUCH PROCESS TO TMCC OR THE BORROWER OR SUCH LOAN PARTY AT ITS ADDRESS SPECIFIED IN SCHEDULE 9.2.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 9.18 No Advisory or Fiduciary Responsibility In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or 

 

  

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other modification hereof or of any other Loan Document), each Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders are arm’s-length commercial transactions between such Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders, on the other hand, (B) such Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) such Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for such Borrower or any of its Affiliates, or any other Person and (B) none of the Administrative Agent, the Sub-Agents, the Arrangers or the Lenders has any obligation to such Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of such Borrower and its Affiliates, and neither the Administrative Agent, nor any Sub-Agent, nor any Arranger, nor any Lender has any obligation to disclose any of such interests to the Borrower or its Affiliates.  To the fullest extent permitted by law, each of the Borrowers hereby waives and releases any claims that it may have against the Administrative Agent, the Sub-Agents, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 9.19 PATRIOT Act Notice.  Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies each Borrower that, pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies such Borrower, which information includes the name and address of such Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify such Borrower in accordance with the Act , and each Borrower agrees to provide such information in its possession upon the reasonable request of a Lender or the Administrative Agent.

Section 9.20 Judgment.  (a)  If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in US Dollars or Canadian Dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase US Dollars or Canadian Dollars with such other currency at BNP Paribas’s principal office in London at 11:00 A.M. (London time) on the Business Day preceding that on which final judgment is given.

(b)           The obligation of any Borrower in respect of any sum due from it in any currency (the “Primary Currency”) to any Lender or the Administrative Agent hereunder shall, notwithstanding any judgment in any other currency, be discharged only to the extent that on the 

 

  

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Business Day following receipt by such Lender or the Administrative Agent (as the case may be), of any sum adjudged to be so due in such other currency, such Lender or the Administrative Agent (as the case may be) may in accordance with normal banking procedures purchase the applicable Primary Currency with such other currency; if the amount of the applicable Primary Currency so purchased is less than such sum due to such Lender or the Administrative Agent (as the case may be) in the applicable Primary Currency, such Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent (as the case may be) against such loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum due to any Lender or the Administrative Agent (as the case may be) in the applicable Primary Currency, such Lender or the Administrative Agent (as the case may be) agrees to remit to such Borrower such excess.

Section 9.21 Waiver of Right to Trial by Jury.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

  

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

 

	  	
TOYOTA MOTOR CREDIT CORPORATION

 

 

	  
	  	
By:  

	/s/ Wei Shi  	  
	  	
Name:

	Wei Shi  	  
	  	
Title:

	Vice President - Treasury, Finance & Analytics	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.

 

 

	  
	  	
By:  

	
/s/ Yoriyuki Hirayama

	  
	  	
Name:

	
Yoriyuki Hirayama

	  
	  	
Title:

	
Authorized Representative

	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA FINANCIAL SERVICES (UK) PLC

 

 

	  
	  	
By:  

	
/s/ Sukhraj Jouhal

	  
	  	
Name:

	
Sukhraj Jouhal

	  
	  	
Title:

	
Company Secretary

	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA KREDITBANK GMBH

 

 

	  
	  	
By:  

	
/s/ Christian Ruben

	  
	  	
Name:

	
Christian Ruben

	  
	  	
Title:

	
Managing Director

 

 

	  
	  	
By:  

	
/s/ Ivo Josko Ljubica

	  
	  	
Name:

	
Ivo Josko Ljubica

	  
	  	
Title:

	
Managing Director

	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA CREDIT DE PUERTO RICO CORP.

 

 

	  
	  	
By:  

	/s/ Wei Shi  	  
	  	
Name:

	Wei Shi  	  
	  	
Title:

	Vice President - Treasury, Finance & Analytics, Toyota Motor Credit Corporation	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA CREDIT CANADA INC.

 

 

	  
	  	
By:  

	/s/ Fernando Belfiglio	  
	  	
Name:

	Fernando Belfiglio	  
	  	
Title:

	Vice President , Finance 	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
TOYOTA LEASING GMBH

 

 

	  
	  	
By:  

	
/s/ Christian Ruben

	  
	  	
Name:

	
Christian Ruben

	  
	  	
Title:

	
Managing Director

 

 

	  
	  	
By:  

	
/s/ Ivo Josko Ljubica

	  
	  	
Name:

	
Ivo Josko Ljubica

	  
	  	
Title:

	
Managing Director

	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BNP PARIBAS, as

	  
	  	
Administrative Agent, a Swing Line Agent, a Swing Line Lender and a Lender

 

 

	  
	  	
By:  

	/s/ Andrew Strait	  
	  	
Name:

	Andrew Strait	  
	  	
Title:

 

 

	Managing Director	  
	  	
By:  

	/s/ Renaud-Franck Falce	  
	  	
Name:

	Renaud-Franck Falce	  
	  	
Title:

	Managing Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

 

 

 

 

 

	  	
BNP PARIBAS (CANADA),

	  
	  	
as Canadian Sub-Agent and as a Lender

 

 

	  
	  	
By:  

	/s/ Chris Golding	  
	  	
Name:

	Chris Golding	  
	  	
Title:

 

 

	Director, Corporate Banking	  
	  	
By:  

	/s/ Tony Baratta	  
	  	
Name:

	Tony Baratta	  
	  	
Title:

	Director, Corporate Banking	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BNP PARIBAS LONDON

	  
	  	
as a Swing Line Agent

 

 

	  
	  	
By:  

	/s/ S. Duranti	  
	  	
Name:

	S. Duranti	  
	  	
Title:

 

 

	Manager	  
	  	
By:  

	/s/ R. Miles	  
	  	
Name:

	R. Miles	  
	  	
Title:

	Corporate Director	  

 

 

Toyota Five Year Credit Agreement Signature Page

 

 

 

 

 

 

	  	
CITIBANK, N.A., as

	  
	  	
a Syndication Agent, Swing Line Lender and a Lender

 

 

	  
	  	
By:  

	/s/ Susan Olsen	  
	  	
Name:

	Susan Olsen	  
	  	
Title:

	Vice President  	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

 

	  	
CITIBANK, N.A., CANADIAN BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:  

	/s/ Niyousha Zarinpour	  
	  	
Name:

	Niyousha Zarinpour	  
	  	
Title:

	Authorised Signer  	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF AMERICA, N.A.,

	  
	  	
as a Syndication Agent, Swing Line Lender and a Lender

 

 

	  
	  	
By:  

	/s/ Chris Wozniak	  
	  	
Name:

	Chris Wozniak	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF AMERICA, N.A., CANADIAN BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:  

	/s/ Medina Sales de Andrade	  
	  	
Name:

	Medina Sales de Andrade	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF TOKYO-MITSUBISHI UFJ, LTD,

	  
	  	
as a Syndication Agent and as a Lender

 

 

	  
	  	
By:

	/s/ Minoru Hagio	  
	  	
Name:

	Minoru Hagio	  
	  	
Title:

	Managing Director	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF TOKYO-MITSUBISHI UFJ

	  
	  	
(CANADA),

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Ikuo Toyoda	  
	  	
Name:

	Mr. Ikuo Toyoda	  
	  	
Title:

	Executive Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
JPMORGAN CHASE BANK N.A.,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Richard J. Poworoznek	  
	  	
Name:

	Richard J. Poworoznek	  
	  	
Title:

	Executive Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
HSBC BANK USA, NATIONAL ASSOCIATION,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Christopher Samms	  
	  	
Name:

	Christopher Samms	  
	  	
Title:

	Senior Vice President, #9426	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SUMITOMO MITSUI BANKING

	  
	  	
CORPORATION OF CANADA,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Yusuke Ono	  
	  	
Name:

	Yusuke Ono	  
	  	
Title:

	President & CFO	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SUMITOMO MITSUI BANKING

	  
	  	
CORPORATION,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Yasushi Iwata	  
	  	
Name:

	Yasushi Iwata	  
	  	
Title:

 

	Assistant general Manager	  
	  	  	  	  
	  	
By:

	/s/ Yuki Saji	  
	  	
Name:

	Yuki Saji	  
	  	
Title:

	Manager	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

 

	  	
SUMITOMO MITSUI BANKING

	  
	  	
CORPORATION,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Takashi Toyoda	  
	  	
Name:

	Takashi Toyoda	  
	  	
Title:

 

	Exective Director	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SUMITOMO MITSUI BANKING

	  
	  	
CORPORATION,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Konstantinos Karabalis	  
	  	
Name:

	Konstantinos Karabalis	  
	  	
Title:

 

	Deputy General Manager	  
	  	  	  	  
	  	
By:

	/s/ Nadine Boudart	  
	  	
Name:

	Nadine Boudart	  
	  	
Title:

	Assistant Manager	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BARCLAYS BANK PLC,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Alicia Borys	  
	  	
Name:

	Alicia Borys	  
	  	
Title:

	Vice President	  

 

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

 

	  	
MIZUHO CORPORATE BANK, LTD., CANADA BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Kazuto Takegami	  
	  	
Name:

	Kazuto Takegami	  
	  	
Title:

	General Manager	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
MIZUHO CORPORATE BANK, LTD., LOS ANGELES BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:  

	/s/ Mitsuyoshi Matsuura	  
	  	
Name:

	Mitsuyoshi Matsuura	  
	  	
Title:

	Joint General Manager	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

 

	  	
ROYAL BANK OF CANADA,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ P K Shields	  
	  	
Name:

	P K Shields	  
	  	
Title:

 

 

	Authorized Signatory	  
	  	
By:

	/s/ Matthew Balicki	  
	  	
Name:

	Matthew Balicki	  
	  	
Title:

	Attorney-in-fact	  
	 	 	 	 
	 	
By:

	/s/ Michael Atherton	 
	 	
Name:

	Michael Atherton	 
	 	
Title:

	Managing Director, Corporate Banking	 

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE ROYAL BANK OF SCOTLAND PLC,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Jeannine Pascal	  
	  	
Name:

	Jeannine Pascal	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
MORGAN STANLEY SENIOR FUNDING INC.,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Michael King	  
	  	
Name:

	Michael King	  
	  	
Title:

	Authorized Signatory	  

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

 

	  	
MORGAN STANLEY BANK, N.A.,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Michael King	  
	  	
Name:

	Michael King	  
	  	
Title:

	Authorized Signatory	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE TORONTO DOMINION BANK, NEW YORK BRANCH

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Robyn Zeller	  
	  	
Name:

	Robyn Zeller	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE TORONTO DOMINION BANK,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Debbi Brito	  
	  	
Name:

	Debbi Brito	  
	  	
Title:

	Authorized Signatory	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE TORONTO DOMINION BANK,

	  
	  	
as a Lender Office for Loans to U.K. Borrower

 

 

	  
	  	
By:

	/s/ Debbi Brito	  
	  	
Name:

	Debbi Brito	  
	  	
Title:

	Authorized Signatory	  

 

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF MONTREAL, LONDON BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Tony Ebdon	  
	  	
Name:

	Tony Ebdon	  
	  	
Title:

 

 

	Managing Director	  
	  	
By:

	/s/ Lisa Rodriguez	  
	  	
Name:

	Lisa Rodriguez	  
	  	
Title:

	Associate General Counsel	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF MONTREAL, CHICAGO BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Yacouba Kane	  
	  	
Name:

	Yacouba Kane	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
BANK OF MONTREAL,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Jeff Currie	  
	  	
Name:

	Jeff Currie	  
	  	
Title:

	Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
FIFTH THIRD BANK,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Jody A. Shoup	  
	  	
Name:

	Jody A. Shoup	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SOCIETE GENERALE (CANADA BRANCH),

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Linda Tam	  
	  	
Name:

	Linda Tam	  
	  	
Title:

 

 

	Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SOCIETE GENERALE,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Linda Tam	  
	  	
Name:

	Linda Tam	  
	  	
Title:

	Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
WELLS FARGO BANK, N.A.,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Adrienne Luzzi	  
	  	
Name:

	Adrienne Luzzi	  
	  	
Title:

	Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK AGENCY,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Jonathan J. Kim	  
	  	
Name:

	Jonathan J. Kim	  
	  	
Title:

 

 

	Authorized Signatory	  
	  	
By:

	/s/ Robert Casey	  
	  	
Name:

	Robert Casey	  
	  	
Title:

	Authorized Signatory	  

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
CIBC WORLD MARKETS PLC,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Geoffrey Wilson	  
	  	
Name:

	Geoffrey Wilson	  
	  	
Title:

 

 

	Executive Director	  
	  	
By:

	/s/ Stephen Redding  	  
	  	
Name:

	Stephen Redding	  
	  	
Title:

	Managing Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
CANADIAN IMPERIAL BANK OF COMMERCE,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Peter A. Mastromarini	  
	  	
Name:

	Peter A. Mastromarini	  
	  	
Title:

 

 

	Managing Director	  
	  	
By:

	/s/ Joshua Picov	  
	  	
Name:

	Joshua Picov	  
	  	
Title:

	Executive Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE BANK OF NEW YORK MELLON,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Robert Besser	  
	  	
Name:

	Robert Besser	  
	  	
Title:

	Managing Director	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Patrick Hartweger	  
	  	
Name:

	Patrick Hartweger	  
	  	
Title:

 

 

	Managing Director	  
	  	
By:

	/s/ Raquel Jegouzo	  
	  	
Name:

	Raquel Jegouzo	  
	  	
Title:

	Assistant Vice President	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
THE NORTHERN TRUST COMPANY,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Brandon Rolek	  
	  	
Name:

	Brandon Rolek	  
	  	
Title:

	Senior Vice President	  

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
UNICREDIT BANK AG, NEW YORK BRANCH,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Thomas Taylor	  
	  	
Name:

	Thomas Taylor	  
	  	
Title:

	Director	  
	 	 	 	 
	 	 	 	 
	 	
By:

	/s/ Thomas Petz	 
	 	
Name:

	Thomas Petz	 
	 	
Title:

	Director	 

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
MITSUBISHI UFJ TRUST AND BANKING CORPORATION,

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Tomoyuki Nagano	  
	  	
Name:

	Tomoyuki Nagano	  
	  	
Title:

	Senior Vice President	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

 

	  	
SUMITOMO MITSUI TRUST BANK, LIMITED, NEW YORK BRANCH

	  
	  	
as a Lender

 

 

	  
	  	
By:

	/s/ Yuji Kabe	  
	  	
Name:

	Yuji Kabe	  
	  	
Title:

	Senior Director	  

 

 

 

 

Toyota Five Year Credit Agreement Signature Page

 

  

 

  

 

SCHEDULE 1.1

 

MANDATORY COST FORMULAE

 

	
1.

	
The Mandatory Cost (to the extent applicable) 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 Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Administrative 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.  The Administrative Agent will, at the request of any Borrower or any Lender, deliver to such Borrower or such Lender as the case may be, a statement setting forth the calculation of any Mandatory Cost.

 

	
3.

	
The Additional Cost Rate for any Lender lending from a Lending Office in a Participating Member State will be the percentage notified by that Lender to the Administrative Agent.  This percentage will be certified by such Lender in its notice to the Administrative Agent to be its reasonable determination of the cost (expressed as a percentage of such Lender’s participation in all Loans made from such Lending Office) of complying with the minimum reserve requirements of the European Central Bank in respect of Loans made from that Lending Office.

 

	
4.

	
The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom will be calculated by the Administrative Agent as follows:

 

	
  

	
(a)

	
in relation to any Loan in Sterling:

 

	

AB+C(B-D)+E x 0.01

	
per cent per annum

	
100 - (A+C)

 

	
  

	
(b)

	
in relation to any Loan in any currency other than Sterling:

 

	

E x 0.01

	
per cent per annum

	
300

 

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.

 

  

Schedule 1.1

  

 

	
  

	
“B”

	
is the percentage rate of interest (excluding the Applicable Rate, the Mandatory Cost and any interest charged on overdue amounts pursuant to the first sentence of Section 2.8(b) and, in the case of interest (other than on overdue amounts) charged at the Default Rate, without counting any increase in interest rate effected by the charging of the Default Rate) payable for the relevant Interest Period of such 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 Administrative Agent on interest bearing Special Deposits.

 

	
  

	
“E”

	
is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Administrative Agent as being the average of the most recent rates of charge supplied by the Lenders to the Administrative Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

	
5.

	
For the purposes of this Schedule:

 

	
  

	
(a)

	
“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;

 

	
  

	
(b)

	
“Fees Rules” means the rules on periodic fees contained in the FSA Supervision 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;

 

	
  

	
(c)

	
“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

 

	
  

	
(d)

	
“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, 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 four decimal places.

 

	
7.

	
If requested by the Administrative Agent or any Borrower, each Lender with a Lending Office in the United Kingdom or a Participating Member State shall, as soon as practicable after publication by the Financial Services Authority, supply to the Administrative Agent and such Borrower, the rate of charge payable by such Lender 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 such 

 

  

Schedule 1.1

  

 

Lender as being the average of the Fee Tariffs applicable to such Lender for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of such Lender.

 

	
8.

	
Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Lender shall supply the following information in writing on or prior to the date on which it becomes a Lender:

 

	
  

	
(a)

	
the jurisdiction of the Lending Office out of which it is making available its participation in the relevant Loan; and

 

	
  

	
(b)

	
any other information that the Administrative Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Administrative Agent in writing 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 Lender for the purpose of E above shall be determined by the Administrative Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative 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 Lending Office in the same jurisdiction as its Lending Office.

 

	
10.

	
The Administrative 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 pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.

 

	
11.

	
The Administrative 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 pursuant to paragraphs 3, 7 and 8 above.

 

	
12.

	
Any determination by the Administrative 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 hereto.

 

	
13.

	
The Administrative Agent may from time to time, after consultation with the Borrowers 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 hereto.

 

  

Schedule 1.1

  

SCHEDULE 2.1

 

COMMITMENTS

AND PRO RATA SHARES

 

 

	
Lender

	 	
Tranche A 

Commitment (US$)

	 	
Tranche B 

Commitment (US$)

	 	
Swing Line 

Commitment (US$)

	 	
Commitment 

Cap (US$)

	
BNP Paribas (Tranche B Commitment is held by BNP Paribas (Canada))

	 	
356,927,596.81

	 	
48,718.389.95

	 	
319,418,000.00

	 	
356,927,596.81

	
Citibank, N.A. (Tranche B Commitment is held by Citibank, N.A., Canadian Branch)

	 	
356,927,596.81

	 	
48,718.389.95

	 	
319,416,000.00

	 	
356,927,596.81

	
Bank of America, N.A. (Tranche B Commitment is held by Bank of America, Canada Branch)

	 	
356,927,596.81

	 	
48,718.389.95

	 	
319,416,000.00

	 	
356,927,596.81

	
Bank of Tokyo-Mitsubishi UFJ, Ltd (Tranche B Commitment is held by Bank of Tokyo Mitsubishi UFJ (Canada))

	 	
356,927,596.81

	 	
23,331304.35

	 	
0

	 	
356,927,596.81

	
HSBC Bank USA, National Association

	 	
249,978,260.87

	 	
26,664,347.83

	 	
0

	 	
249,978,260.87

	
JPMorgan Chase Bank, N.A.

	 	
249,978,260.87

	 	
26,664,347.83

	 	
0

	 	
249,978,260.87

	
Sumitomo Mitsui Banking Corporation (Tranche B Commitment is held by Sumitomo Mitsui Banking Corporation of Canada)

	 	
249,978,260.87

	 	
16,665,217.39

	 	
0

	 	
249,978,260.87

	
Barclays Bank PLC

	 	
199,982,608.70

	 	
0

	 	
0

	 	
199,982,608.70

 

 

  

1

  

 

 

	
Lender

	 	
Tranche A 

Commitment (US$)

	 	
Tranche B 

Commitment (US$)

	 	
Swing Line 

Commitment (US$)

	 	
Commitment 

Cap (US$)

	
Mizuho Corporate Bank, Ltd. Los Angeles Agency (Tranche B Commitment is held by Mizuho Corporate Bank, Ltd., Canada Branch)

	 	
199,982,608.70

	 	
23,331,304.35

	 	
0

	 	
199,982,608.70

	
Royal Bank of Canada

	 	
199,982,608.70

	 	
199,982,608.70

	 	
0

	 	
199,982,608.70

	
The Royal Bank of Scotland plc

	 	
199,982,608.70

	 	
23,331,304.35

	 	
0

	 	
199,982,608.70

	
Morgan Stanley Senior Funding Inc.

	 	
94,615,400.00

	 	
0

	 	
0

	 	
94,615,400.00

	
Morgan Stanley Bank, N.A..

	 	
47,038,947.83

	 	  	 	  	 	
47,038,947.83

	
The Toronto Dominion Bank

	 	
141,654,347.83

	 	
141,654,347.83

	 	
0

	 	
141,654,347.83

	
Bank of Montreal

	 	
73,326,956.52

	 	
73,326,956.52

	 	
0

	 	
73,326,956.52

	
Fifth Third Bank

	 	
73,326,956.52

	 	
0

	 	
0

	 	
73,326,956.52

	
Societe Generale (Tranche B Commitment is held by Societe Generale (Canada Branch))

	 	
73,326,956.52

	 	
19,998,260.87

	 	
0

	 	
73,326,956.52

	
Wells Fargo Bank, N.A.

	 	
73,326,956.52

	 	
0

	 	
0

	 	
73,326,956.52

	
Canadian Imperial Bank of Commerce/CIBC World Markets plc (Tranche B Commitment is held by Canadian Imperial Bank of Commerce)

	 	
45,494,830.13

	 	
45,494,830.13

	 	
0

	 	
45,494,830.13

	
The Bank of New York Mellon

	 	
41,663,043.48

	 	
0

	 	
0

	 	
41,663,043.48

	
Commerzbank AG, New York and Grand Cayman Branches

	 	
41,663,043.48

	 	
0

	 	
0

	 	
41,663,043.48

 

 

  

2

  

 

 

	
Lender

	 	
Tranche A 

Commitment (US$)

	 	
Tranche B 

Commitment (US$)

	 	
Swing Line 

Commitment (US$)

	 	
Commitment 

Cap (US$)

	
The Northern Trust Company

	 	
41,663,043.48

	 	  	 	  	 	
41,663,043.48

	
UniCredit Bank AG, New York Branch

	 	
41,663,043.48

	 	  	 	  	 	
41,663,043.48

	
Mitsubishi UFJ Trust & Banking Corporation

	 	
33,330,434.78

	 	
0

	 	
0

	 	
33,330,434.78

	
Sumitomo Mitsui Trust Bank, Limited, New York Branch

	 	
33,330,434.78

	 	
0

	 	
0

	 	
33,330,434.78

	
TOTAL:

	 	
3,833,000,000

	 	
766,600,000

	 	
958,250,000

	 	
3,833,000,000

 

 

  

3

  

 

 

	
Lender

	 	
Pro Rata Share of 

Tranche A

	 	
Pro Rata Share of 

Tranche B

	 	
Pro Rata Share of 

Commitment Cap

	
BNP Paribas (Tranche B Commitment is held by BNP Paribas (Canada))

	 	
9.312%

	 	
6.355%

	 	
9.312%

	
Citibank, N.A. (Tranche B Commitment is held by Citibank, N.A., Canadian Branch)

	 	
9.312%

	 	
6.355%

	 	
9.312%

	
Bank of America, N.A. (Tranche B Commitment is held by Bank of America, Canada Branch)

	 	
9.312%

	 	
6.355%

	 	
9.312%

	
Bank of Tokyo-Mitsubishi UFJ, Ltd (Tranche B Commitment is held by Bank of Tokyo Mitsubishi UFJ (Canada))

	 	
9.312%

	 	
3.043%

	 	
9.312%

	
HSBC Bank USA, National Association

	 	
6.522%

	 	
3.478%

	 	
6.522%

	
JPMorgan Chase Bank, N.A.

	 	
6.522%

	 	
3.478%

	 	
6.522%

	
Sumitomo Mitsui Banking Corporation (Tranche B Commitment is held by Sumitomo Mitsui Banking Corporation of Canada)

	 	
6.522%

	 	
2.174%

	 	
6.522%

	
Barclays Bank PLC

	 	
5.217%

	 	
0

	 	
5.217%

	
Mizuho Corporate Bank, Ltd. Los Angeles Agency (Tranche B Commitment is held by Mizuho Corporate Bank, Ltd., Canada Branch)

	 	
5.217%

	 	
3.043%

	 	
5.217%

	
Royal Bank of Canada

	 	
5.217%

	 	
26.087%

	 	
5.217%

	
The Royal Bank of Scotland plc

	 	
5.217%

	 	
3.043%

	 	
5.217%

	
Morgan Stanley Senior Funding Inc.

	 	
2.4684%

	 	  	 	
2.4684%

 

 

  

4

  

 

 

	
Lender

	 	
Pro Rata Share of 

Tranche A

	 	
Pro Rata Share of 

Tranche B

	 	
Pro Rata Share of 

Commitment Cap

	
Morgan Stanley Bank, N.A.

	 	
1.2272%

	 	  	 	
1.2272%

	
The Toronto Dominion Bank

	 	
3.696%

	 	
18.478

	 	
3.696%

	
Bank of Montreal

	 	
1.913%

	 	
9.565%

	 	
1.913%

	
Fifth Third Bank

	 	
1.913%

	 	
0

	 	
1.913%

	
Societe Generale (Tranche B Commitment is held by Societe Generale (Canada Branch))

	 	
1.913%

	 	
2.609%

	 	
1.913%

	
Wells Fargo Bank, N.A.

	 	
1.913%

	 	
0

	 	
1.913%

	
Canadian Imperial Bank of Commerce/CIBC World Markets plc (Tranche B Commitment is held by Canadian Imperial Bank of Commerce)

	 	
1.187%

	 	
5.935%

	 	
1.187%

	
The Bank of New York Mellon

	 	
1.087%

	 	
0

	 	
1.087%

	
Commerzbank AG, New York and Grand Cayman Branches

	 	
1.087%

	 	
0

	 	
1.087%

	
The Northern Trust Company

	 	
1.087%

	 	
0

	 	
1.087%

	
UniCredit Bank AG, New York Branch

	 	
1.087%

	 	
0

	 	
1.087%

	
Mitsubishi UFJ Trust & Banking Corporation

	 	
0.870%

	 	
0

	 	
0.870%

	
Sumitomo Mitsui Trust Bank, Limited, new York Branch

	 	
0.870%

	 	
0

	 	
0.870%

	
TOTAL:

	 	
100.0%

	 	  	 	
100. 0%

 

 

  

5

  

 

SCHEDULE 9.2

 

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

 

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for Notices of Payments and Requests for Loans):

BNP Paribas RCC Inc.

525 Washington Boulevard

8th Floor

Jersey City, NJ 07310

Attention:  Dina Wilson

Telephone: 201-850-6807

Facsimile:   201-850-4020

Electronic Mail: nyls.agency.support@us.bnpparibas.com

(for Payments):

US Dollar (USD)

 

	
Bank:

	
BNP Paribas, New York

	
ABA No:

	
026-007-689

	
ACCT No:

	
52131543476

	
ACCT Name:

	
BNP Paribas Chicago Branch

	
Ref:

	
Toyota

Canadian Dollar (CAD)

 

	
Bank:

	
BNP Paribas, Montreal

	  	
(BNPACAMMXXX)

	
FFC Name:

	
BNP Paribas Chicago Branch

	  	
(BNPAUS3NXXX)

	
Account No:

	
11-010038-001-78

	
Attn:

	
Loan Servicing

	
Ref:

	
Toyota

Eurocurrency (EUR)

 

	
FFC Name:

	
BNP Paribas, Chicago Branch

	  	
(BNPAUS3NXXX)

	
Account No:

	
40080257

	
IBAN No:

	
FR7630004008970004008025726

	
Attn:

	
Loan Servicing

	
Ref:

	
Toyota

 

  

1

  

 

British Pounds (GBP)

 

	
Bank:

	
BNP Paribas, London

	  	
(BNPAGB22XXX)

	
Sort Code:

	
23 46 35

	
FFC Name:

	
BNP Paribas, Chicago Branch

	  	
(BNPAUS3NXXX)

	
Account No:

	
230090183000

	
Attn:

	
Loan Servicing

	
Ref:

	
Toyota

 

 

CANADIAN SUB-AGENT:

(for Notices of Payments and Requests for Loans):

BNPP Canada

1981 McGill College

Montreal QC  H3A 2W8

Attention:  Gloria Friedrich/Herold Medor, Loan Administrator/Team leader

Telephone:  1-888-284-6220

Facsimile:  514-285-2944

Electronic Mail: cals.support@ca.bnpparibas.com

· 

(for Payments):

US Dollar (USD)

Clearing Agent/Payment To: BNPAUS3N

ABA No.: 026007689

Beneficiary Bank:  BNPACAMM

Beneficiary: BNP Paribas Canada, Loan Servicing

Account No.: 001152131543487

Reference: Toyota Credit Canada Inc.

Attention: CALS.SUPPORT

Canadian Dollar (CAD)

· Beneficiary Bank:  BNPACAMM

Beneficiary: BNP Paribas Canada, Loan Servicing

Account No.: 001152131543487

Reference: Toyota Credit Canada Inc.

Attention: CALS.SUPPORT

· 

 

  

2

  

 

SWING LINE AGENT:

(for Notices of Payments and Requests for Loans):

US Dollar and Canadian Swing Line Loans:

BNP Paribas RCC Inc.

525 Washington Boulevard

8th Floor

Jersey City, NJ 07310

Attention:  Dina Wilson

Telephone: 201-850-6807

Facsimile:   201-850-4020

Electronic Mail: nyls.agency.support@us.bnpparibas.com

 

Payment instructions:

US Dollar (USD)

BNP Paribas, New York

ABA No: 026-007-689

ACCT No:  52131543476

ACCT Name: BNP Paribas Chicago Branch

Ref: Toyota

 

Payment instructions:

Canadian Dollar (CAD)

 

	
Bank:

	
BNP Paribas, Montreal (Swift code: BNPACAMMXXX)

	  	  
	
For further credit to:  

	
BNP Paribas, Chicago Branch (Swift code: BNPAUS3NXXX)

	
Account No:

	
11-010038-001-78

	
Ref:

	
Toyota Credit Canada Inc.

	
Attn:

	
Loan Servicing

 

 

EUR and GBP Swing Line Loans:

Loans and Agency Desk

BNP Paribas London

10 Harewood Avenue

London NW1 6AA

Telephone: 44 (0)20 7595 4332

Facsimile:  44 (0)20 7595 6195

Electronic Mail: lisa.verdigi@uk.bnpparibas.com

 

Payment instructions:

 

EUR

BNP Paribas Paris

Swift BNPAFRPP

BNP Paribas London

 

 

  

3

  

 

 

Swift BNPAGB22

Account 02280424

IBAN No: FR7630004008970000228042426

 

GBP

BNP Paribas London

BNPAGB22

Sort Code 23-46-35

Account No : 50117609

IBAN No: GB86BARC20325350117609

 

BORROWERS:

 

Toyota Motor Credit Corporation

 

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

Toyota Motor Finance (Netherlands) B.V.

 

World Trade Center Amsterdam

Tower H, Level 10, Zuidplein 90

1077 XV Amsterdam

The Netherlands

Attention: Chief Financial Officer

Telephone: 31 20 502 5314

Telefax: 31 20 502 5319

With a copy to:

 

Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468 6197

Facsimile: (310) 468-6194

 

 

  

4

  

 

 

With a copy to:

 

Toyota Financial Services (UK) PLC

Great Burgh

Burgh Heath

Epsom

Surrey KT18 5UZ

United Kingdom

Attention: European Funding Manager

Telephone: 44 (0) 1737 365 590

Facsimile: 44 (0) 1737 365 596

Toyota Financial Services (UK) PLC

 

Great Burgh

Burgh Heath

Epsom

Surrey KT18 5UZ

United Kingdom

Attention: European Funding Manager

Telephone: 44 (0) 1737 365 590

Facsimile: 44 (0) 1737 365 596

With a copy to:

 

Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

Toyota Kreditbank GmbH

 

c/o Toyota Financial Services (UK) PLC

Great Burgh

Burgh Heath

Epsom

Surrey KT18 5UZ

United Kingdom

Attention: European Funding Manager

Telephone: 44 (0) 1737 365 590

Facsimile: 44 (0) 1737 365 596

 

  

5

  

 

With a copy to:

 

Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

Toyota Credit de Puerto Rico Corp.

 

c/o Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

Toyota Credit Canada Inc.

 

80 Micro Court, Suite 200

Markham, Ontario

Canada L3R 9Z5

Attention: Head of Treasury

Telephone: (905) 513-5409

With a copy to:

 

Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

Toyota Leasing GmbH

 

c/o Toyota Financial Services (UK) PLC

Great Burgh

Burgh Heath

Epsom

Surrey KT18 5UZ

United Kingdom

 

  

6

  

 

Attention: European Funding Manager

Telephone: 44 (0) 1737 365 590

Facsimile: 44 (0) 1737 365 596

With a copy to:

 

Toyota Motor Credit Corporation

19001 South Western Avenue

P.O. Box 2958

Mail Stop NF-10

Torrance, CA  90509-2958

Attention: David Johnson, Treasury Manager and Jeff Carter, Assistant Global Treasurer

Telephone: (310) 468-6197

Facsimile: (310) 468-6194

 

Website:

 

Investor Relations section of www.toyotafinancial.com

 

  

7

  

 

EXHIBIT A-1

 

FORM OF COMMITTED LOAN NOTICE

 

 

Date:  ___________, _____

	
To:

	
BNP Paribas, as Administrative Agent

 

Ladies and Gentlemen:

Reference is made to that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

The undersigned hereby requests (select one):

	
  

	
 o   A Borrowing of Committed Loans

	
  o   A conversion or continuation of Loans

1.           On                                                                                  (a Business Day).

2.           In the amount of [US$][CDN$][€][£]                            .

3.           Comprised of                                                                         .  [Type of Committed Loan requested]

4.           For Eurocurrency Rate Loans: with an Interest Period of              months.

5.           For Bankers’ Acceptances, Drafts and BA Equivalent Notes: with a BA Maturity Date of             days.

[The Committed Borrowing requested herein complies with the proviso to the first sentence of Section 2.1[(a)][(b)]] of the Agreement.]

 

 

  

A-1-1 
Form of Committed Loan Notice

  

 

The undersigned hereby represents and warrants that the conditions set forth in Section 4.2(a) and (b) have been satisfied on and as of the date the Committed Loans are borrowed, including, without limitation, that the Borrowing is within the Borrower’s corporate powers, has been duly authorized by all necessary corporate action, and the amount of the Committed Borrowing does not exceed such authorization.

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA FINANCIAL SERVICES (UK) PLC]

[TOYOTA KREDITBANK GMBH]

[TOYOTA LEASING GMBH]

 

[as Borrowers’ Representative for]

 

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA CREDIT DE PUERTO RICO CORP.]

[TOYOTA CREDIT CANADA INC.]

 

 

By:                                                                                           

 

Name:                                                                                      

 

Title:                                                                                        

 

 

 

 

  

A-1-2 
Form of Committed Loan Notice

  

 

EXHIBIT A-2

 

FORM OF SWING LINE LOAN NOTICE

 

 

Date:  ___________, _____

	
To:

	
BNP Paribas, as Swing Line Agent

	
  

	
BNP Paribas, as Administrative Agent

 

	
  

	
Ladies and Gentlemen:

Reference is made to that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

The undersigned hereby requests a Swing Line Loan:

1.                      On                                                                                       (a Business Day).

2.                      In the amount of [US$][CDN$][€][£]              .

The Swing Line Borrowing requested herein complies with the requirements of the provisos to the first sentence of Section 2.16(a) of the Agreement.

 

 

 

  

A-2-1 
Form of Swing Line Loan Notice

  

 

The undersigned hereby represents and warrants that the conditions set forth in Section 4.2(a) and (b) have been satisfied on and as of the date the Swing Line Loans are borrowed, including, without limitation, that the Borrowing is within the Borrower’s corporate powers, has been duly authorized by all necessary corporate action, and the amount of the Swing Line Loan does not exceed such authorization.

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA FINANCIAL SERVICES (UK) PLC]

[TOYOTA KREDITBANK GMBH]

[TOYOTA LEASING GMBH]

 

[as Borrowers’ Representative for]

 

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA CREDIT DE PUERTO RICO CORP.]

[TOYOTA CREDIT CANADA INC.]

 

By:                                                                                         

 

Name:                                                                                    

 

Title:                                                                                      

 

 

 

 

  

A-2-2 
Form of Swing Line Loan Notice

  

 

 

EXHIBIT B

 

FORM OF NOTE

 

 

	
__________, 200_

 

FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay, without setoff or counterclaim, to _____________________ or to its order (the “Lender”), in accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time made by the Lender to the Borrower under that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

The Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement.  All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in US Dollars in immediately available funds at the Administrative Agent’s Office.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement.

This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement.  Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business.  The Lender may also attach schedules to this Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.

 

 

  

B-1 
Form of Note

  

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA FINANCIAL SERVICES (UK) PLC]

[TOYOTA KREDITBANK GMBH]

[TOYOTA CREDIT DE PUERTO RICO CORP.]

[TOYOTA CREDIT CANADA INC.]

[TOYOTA LEASING GMBH]

 

 

By:                                                                                         

 

Name:                                                                                    

 

Title:                                                                                      

 

 

 

  

B-2 
Form of Note

  

 

LOANS AND PAYMENTS WITH RESPECT THERETO

 

 

	
Date

	 	
Type of Loan Made

	 	
Amount of Loan Made

	 	
End of Interest Period

	 	
Amount of Principal or Interest Paid This Date

	 	
Outstanding Principal Balance This Date

	 	
Notation Made By

	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  

 

 

 

  

B-3 
Form of Note

  

 

EXHIBIT C

 

[Reserved]

 

 

 

 

 

 

 

  

C-1

  

 

 

EXHIBIT D

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below and (ii) to the extent permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at Law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

1.           Assignor:                      ______________________________

 

 

2.           Assignee:                      ______________________________ [and is an Affiliate/Approved Fund of [identify Lender]1]

 

 

3.           Borrower(s):    [Toyota Motor Credit Corporation] [Toyota Motor Finance (Netherlands) B.V.] [Toyota Financial Services (UK) PLC] [Toyota Leasing GmbH] [Toyota Credit de Puerto Rico Corp.] [Toyota Credit Canada Inc.] [Toyota Kreditbank GmbH]

 

 

1 Select as applicable.

 

 

 

  

D-1 
Assignment and Assumption

  

 

4.           Administrative Agent: ______________________, as the administrative agent under the Credit Agreement

 

 

5.           Credit Agreement:    Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

 

6.           Assigned Interest:

 

 

	
 

Facility Assigned:

Tranche [A][B]

	
Aggregate

Amount of

Tranche [A][B] Commitment

for all Lenders*

 

	
Amount of

Tranche [A][B] Commitment

Assigned*

	
Percentage

Assigned of

Tranche [A][B] Commitment2

	
 

Assignee’s

Commitment Cap

	
Commitment being assigned

	
US$_____________

	
US$______________

	
______________%

	
US$________________

 

[7.           Trade Date:   __________________]3

 

Effective Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

 

* Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

2  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

3 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

 

 

  

D-2 
Assignment and Assumption

  

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

 

ASSIGNOR

 

[NAME OF ASSIGNOR]

 

 

By:  _____________________________

Title:

 

 

ASSIGNEE

 

[NAME OF ASSIGNEE]

 

 

By:  _____________________________

Title:

 

 

 

  

D-3 
Assignment and Assumption

  

 

 

[Consented to and]4 Accepted:

 

 

[NAME OF ADMINISTRATIVE AGENT], as

 

Administrative Agent

 

 

By:  _________________________________

Title:

 

 

[Consented to:]5

 

 

By:  _________________________________

Title:

 

 

4 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

5 To be added only if the consent of the applicable Borrower and/or other parties is required by the terms of the Credit Agreement.

 

 

  

D-4 
Assignment and Assumption

  

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

 

(FIVE YEAR CREDIT AGREEMENT, DATED AS OF FEBRUARY 26, 2013 (AS AMENDED, RESTATED, EXTENDED, SUPPLEMENTED OR OTHERWISE MODIFIED IN WRITING FROM TIME TO TIME, THE “AGREEMENT;” THE TERMS DEFINED THEREIN BEING USED HEREIN AS THEREIN DEFINED), AMONG TOYOTA MOTOR CREDIT CORPORATION, A CALIFORNIA CORPORATION, TOYOTA MOTOR FINANCE (NETHERLANDS) B.V., A CORPORATION ORGANIZED UNDER THE LAWS OF THE NETHERLANDS, TOYOTA FINANCIAL SERVICES (UK) PLC, A CORPORATION ORGANIZED UNDER THE LAWS OF ENGLAND, TOYOTA LEASING GMBH, A CORPORATION ORGANIZED UNDER THE LAWS OF GERMANY, TOYOTA CREDIT DE PUERTO RICO CORP., A CORPORATION ORGANIZED UNDER THE LAWS OF PUERTO RICO, TOYOTA CREDIT CANADA INC., A CORPORATION ORGANIZED UNDER THE LAWS OF CANADA, TOYOTA KREDITBANK GMBH, A CORPORATION ORGANIZED UNDER THE LAWS OF GERMANY, THE LENDERS FROM TIME TO TIME PARTY THERETO, BNP PARIBAS, AS ADMINISTRATIVE AGENT, SWING LINE AGENT AND SWING LINE LENDER, BNP PARIBAS SECURITIES CORP., CITIGROUP GLOBAL MARKETS INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED AND THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., AS JOINT LEAD ARRANGERS AND JOINT BOOK MANAGERS, CITIBANK, N.A. AND BANK OF AMERICA, N.A., AS SWING LINE LENDERS, AND CITIBANK, N.A., BANK OF AMERICA, N.A. AND THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., AS SYNDICATION AGENTS)

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.            Representations and Warranties.

1.1.         Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim created by the Assignor and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of any Borrower or any of its Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by any Borrower or any of its Affiliates or any other Person of any of their respective obligations under any Loan Document.

1.2.         Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the 

 

 

 

  

D-5 
Assignment and Assumption

  

 

Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 6.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) attached hereto is any withholding tax documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

2.            Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned interest (including payments of principal, interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to or on or after the Effective Date.  The Assignor and the Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves.

3.            General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the Law of the State of New York.

  

D-6

  

 

 

EXHIBIT E

 

FORM OF MONEY MARKET QUOTE REQUEST

 

Date:  ___________, _____

	
To:

	
BNP Paribas, as Administrative Agent

 

	
  

	
Ladies and Gentlemen:

Reference is made to that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

The undersigned hereby requests Money Market Quotes for (select one):

	
o    Money Market Absolute Rate for

	
o    Money Market Margin for

	 	
Money Market Absolute Rate Loans

	
Money Market LIBOR Loans

1.           On                                                                                     (a Business Day).

2.           In the amount of US$                                                             .

3.           For an Interest Period of                                                        .

The Money Market Loans for which Money Market Quotes are requested herein would comply with the proviso to the first sentence of Section 2.3(a) of the Agreement.

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA FINANCIAL SERVICES (UK) PLC]

[TOYOTA KREDITBANK GMBH]

[TOYOTA LEASING GMBH]

 

[as Borrowers’ Representative for]

 

 

 

  

E-1 
Form of Money Market Quote Request

  

 

[TOYOTA MOTOR CREDIT CORPORATION]

[TOYOTA CREDIT DE PUERTO RICO CORP.]

 

 

By:                                                                                             

 

Name:                                                                                        

 

Title:                                                                                          

 

 

 

  

E-2 
Form of Money Market Quote Request

  

 

EXHIBIT F

 

FORM OF INVITATION FOR MONEY MARKET QUOTES

 

Date:  ___________, _____

	
To:

	
Lenders party to the Agreement (as defined below)

 

	
  

	
Ladies and Gentlemen:

Reference is made to that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

On behalf of [Toyota Motor Credit Corporation] [Toyota Motor Finance (Netherlands) B.V.] [Toyota Financial Services (UK) PLC] [Toyota Leasing GmbH] [Toyota Credit de Puerto Rico Corp.] [Toyota Kreditbank GmbH], you are invited to submit Money Market Quotes for (select one):

 

	
o    Money Market Absolute Rate for

	
o    Money Market Margin for

	 	
Money Market Absolute Rate Loans

	
Money Market LIBOR Loans

 

1.           On _______________________________________ (a Business Day).

2.           In the amount of US$                                                    .

3.           For an Interest Period of                                               .

 

Please respond to this invitation by no later than [1 :00 p.m.] [9:00 a.m.] on [date].

 

BNP PARIBAS, as Administrative Agent

 

By:                                                                                  

Authorized Officer

 

 

 

  

F-1 
Form of Invitation for Money Market Quotes

  

 

EXHIBIT G

 

FORM OF MONEY MARKET QUOTE

 

Date:  ___________, _____

	
To:

	
BNP Paribas, as Administrative Agent

 

	
Ladies and Gentlemen:

Reference is made to that certain Five Year Credit Agreement, dated as of February 26, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Toyota Motor Credit Corporation, a California corporation, Toyota Motor Finance (Netherlands) B.V., a corporation organized under the laws of the Netherlands, Toyota Financial Services (UK) PLC, a corporation organized under the laws of England, Toyota Leasing GmbH, a corporation organized under the laws of Germany, Toyota Credit de Puerto Rico Corp., a corporation organized under the laws of Puerto Rico, Toyota Credit Canada Inc., a corporation organized under the laws of Canada, Toyota Kreditbank GmbH, a corporation organized under the laws of Germany, the Lenders from time to time party thereto, BNP Paribas, as Administrative Agent, Swing Line Agent and Swing Line Lender, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers and Joint Book Managers, Citibank, N.A. and Bank of America, N.A. as Swing Line Lenders and Citibank, N.A., Bank of America, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agents.

In response to your invitation on behalf of [Toyota Motor Credit Corporation] [Toyota Motor Finance (Netherlands) B.V.] [Toyota Financial Services (UK) PLC] [Toyota Leasing GmbH] [Toyota Credit de Puerto Rico Corp.] [Toyota Kreditbank GmbH] dated ______________, 20__, we hereby make the following Money Market Quote on the following terms:

 

	
1.

	
Quoting Lender:

	
________________________

 

	
2.

	
Person to contact at Quoting Lender:

	
Name:

	
________________________

 

	 	

Tel:

	
________________________

 

	 	
Fax:

	
________________________

 

	 	
email:

	
________________________

 

	
3.

	
Date of Borrowing:

	
_____________________   __6

 

	
4.

	
We hereby offer to make Money Market Loan(s) in the following principal amounts, for the following Interest Periods and at the following rates:

 

 

6 As specified in the related Invitation.

 

 

 

  

G-1 
Form of Money Market Quote

  

 

 

 

	
Principal

Amount7

	
Interest

Period8

	
[Money Market

Margin]9

	
[Absolute Rate10]

	
US$

	  	  	  
	
US$

	  	  	  

 

The Money Market Loans for which Money Market Quotes are submitted herein comply with the requirements of the Agreement.

We understand and agree that the offer(s) set forth above, subject to the satisfaction of the applicable conditions set forth in the Agreement, irrevocably obligates us to make the Money Market Loan(s) for which any offer(s) are accepted, in whole or in part.

 

 

	 	 	
Very truly yours,

	 
	 	 	 	 
	 	 	[NAME OF LENDER]	 
	 	 	 	 
	 	 	 	 	 
	Date:	 	 	
By: 

	 	 
	 	 	 	
Authorized Officer

	 
	 	 	 	 	 
	 	 	 	 	 

 

	
7

	
Principal amount bid for each Interest Period may not exceed principal amount requested.  Specify aggregate limitation if the sum of the individual offer exceeds the amount the Lender is willing to lend.  Bids must be made for US$5,000,000 or larger multiple of US$1,000,000.

	
8

	
Not less than one month or not less than 14 days, as specified in the related Invitation.  No more than five bids are permitted for each Interest Period

	
9

	
Margin over or under the Eurocurrency Rate determined for the applicable Interest Period.  Specify percentage (to the nearest 1/100,000 of 1%) and specify whether “PLUS” or “MINUS.”

	
10

	
Specify rate of interest per annum (to the nearest 1/10,000th of 1%).

 

 

  

G-2 
Form of Money Market Quote

  

 

EXHIBIT H

 

 

FORM OF OPINION OF COUNSEL FOR TMCC

 

 

 

 

 

  

H-1 
Form of Opinion of Counsel to TMCC

  

 

 

EXHIBIT I-1

 

FORM OF OPINION OF COUNSEL FOR TCPR

 

 

  

I-1

  

 

 

 

 

EXHIBIT I-2

 

 

FORM OF OPINION OF COUNSEL FOR TCCI

 

 

 

 

 

  

I-1

  

 

 

EXHIBIT I-3

 

 

FORM OF OPINION OF COUNSEL FOR TFSUK

 

 

 

  

I-1

  

 

 

 

EXHIBIT I-4

 

 

FORM OF OPINION OF COUNSEL FOR TMFNL

 

 

 

  

I-1

  

 

 

 

EXHIBIT I-5

 

FORM OF OPINION OF COUNSEL FOR TKG AND TLGFortaleza Bareboat Charter

 Exhibit 10.11 
 SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****). 
  

							
	  
 

  
	 	 1.   Shipbroker
 Brazilship Scanbrasil Comércio
Marítimo Ltda.
 Rio de Janeiro
	  	 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD BAREBOAT CHARTER
 CODE NAME:
“BARECON 89”
	  	

	 	  	 2.   Place and date
 14.11.2007

	 	
3.   Owners/Place of business

Knutsen Shuttle Tankers XII KS, Smedasundet 40, 5519 Haugesund, Norway
	  	 4.   Bareboat charterers (Charterers) Place of business

Fronape International Company
 PO Box 714
 Georgetown, Grand Cayman

Cayman Islands
 or
 Petrobras Transporte S.A. – Transpetro

Av. Presidente Vargas, 328
 20091-060 Rio de Janeiro, RJ
 Brazil

	 	 5.   Vessel’s name, Call Sign and Flag (Cl. 9(c))

Vessel data to be informed – Flag: Isle of Man – N255

	 	
6.   Type of vessel
 MOTORTANKER/SHUTTLE TANKER
	  	 7.   GRT/NRT
 To be informed

	 	
8.   When/Where built
 Cosco (Nantong) Shipyard Ltd. Co.
	  	 9.   Total DWT (abt.) in metric tons on summer freeboard

105.000 dwt.

	 	 10. Class
(Cl.9)
 DNV 1A1 “tanker for oil ESP”, CSR, NAUTICUS (new building), DYNPOS-AUTR, OPP-F, ISC, BOW
LOADING, SPM, F-AMC
	  	 11. Date of last special survey by the Vessel’s classification society

DELETED

	 	 12. Further particulars of Vessel (also indicate minimum number of months’ validity of class certificates agreed acc. to Cl. 14)

SEE CLAUSE 33 AND ATTACHMENT A.
 ON REDELIVERY CLASS CERTIFICATES TO BE VALID FOR AT LEAST 6 MONTHS.

	 	 13. Port or Place
of delivery (Cl.2)
 COSCO (NANTONG) SHIPYARD, Nantung, CHINA
	  	 14. Time for
delivery (Cl.3)
 1 qtr 2011
 SEE CLAUSE 32.
	  	
15. Cancelling date (Cl.4)

3 qtr 2011
 SEE ALSO CLAUSE 34.

	 	 	  	 16. Port or Place of redelivery (Cl. 14)
 IN CHARTERERS OPTION
ONE SAFE PORT BRAZIL, USGULF, UKC, MED.

	 	 17. Running
days’ notice if other than stated in Cl. 3
 N/A
	  	 18. Frequency of dry-docking if other than stated in Cl. 9(f)

ACCORDING TO CLASS REQUIREMENTS.

	 	 19. Trading Limits (Cl.5)
 WORLD WIDE WITHIN IWL, EXCLUDING
COUNTRIES UNDER EMBARGO BY U.N. AND U.S.A. THE VESSEL SHALL NOT BREAK ICE OR FOLLOW ICEBREAKER.

	 	 20. Charter
period
 12 YEARS
	  	 21. Charter hire (Cl.10)
 US DOLLAR ***** PER DAY. SEE ALSO
CLAUSE 29.

	 	 22. Rate of
interest payable acc. to Cl. 10(f) and, if applicable, acc. to
PART IV
 N/A
	  	 23. Currency and method of payment (Cl.10)
 U.S. DOLLAR PAYABLE
MONTHLY IN ADVANVE.

	 	 24. Place of
payment; also state beneficiary and bank account (Cl.10)
 Bank account number (to be advised) in DnBNor ASA in
favour of Knutsen Shuttle Tankers XII KS.
	  	 25. Bank guarantee/bond (sum and place) (Cl.22) (optional)
 SEE
CLAUSE 30.

	 	 26. Mortgage(s),
if any, (state whether Cl.11(a) or (b) applies; if 11(b) applies state date of Deed(s) of Covenant and name of Mortgagee(s)/Place of business)(Cl.11)

SEE CLAUSE 11.
	  	 27. Insurance (marine and war risks) (state value acc. to Cl.12(f) or, if applicable, acc. to Cl. 13(k)) (also state if Cl.13 applies)

USD 130.000.000, clause 12 to apply.

	 	 28. Additional
insurance cover, if any, for Owners’ account limited to (Cl.12(b)) or, if applicable, (Cl 13(g))

N/A
	  	 29. Additional insurance cover, if any, for Charterers’ account limited to (Cl.12(b)) or, if applicable, (Cl.13(g))

N/A

	 	 30. Latent defects
(only to be filled in if period other than stated in Cl. 2)
 N/A
	  	 31. War cancellation (indicate countries agreed) (Cl.24)

Brazil, Norway and USA.

	 	 32. Brokerage commission and to whom payable (Cl.25)
 AS PER
AGREEMENT.

	 	 33. Law and
arbitration (state 26.1, 26.2, or 26.3 of Cl.26 as agreed; if 26.3, agreed, also state place of arbitration) (Cl.26)
 AS PER CLAUSE 26.1
	  	 34. Number of additional clauses covering special provisions, if agreed

ADDITIONAL CLUSES CL. 27 - 38 AND ATTACHMENT “A” ARE DEEMED PART OF THIS CHARTER PARTY.

	 	 35. Newbuilding
Vessel (indicate with “yes” or “no” whether Part III applies) (optional)

N/A
	  	 36. Name and place of Builders (only to be filled in if Part III applies)
 N/A

 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the
form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss,
damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

			
	 37. Vessel’s Yard Building No.
(only to be filled in if Part III applies)
 N/A
	  	 38. Date of Building Contract (only to be filled in if Part III applies)
 N/A

	 39  Hire/Purchase agreement
(indicate with “yes” or “no” whether Part IV applies) (optional)
 N/A
	  	 40. Bareboat Charter Registry (indicate with “yes” or “no” whether Part V applies) (optional)
 YES

	 41. Flag and Country of the Bareboat
Charter Registry (only to be filled in if Part V applies)
 REGISTRO ESPECIAL BRASILEIRO –
BRAZIL
	  	 42. Country of the Underlying Registry (only to be filled in if Part V applies)
 Isle of Man.

	
	 PREAMBLE.—It is mutually agreed that this Contract shall be performed subject to the conditions
contained in this Charter which shall include PART I and PART II. In the event of a conflict of conditions, the provisions of PART I shall prevail over those of PART II to the extent of such conflict but no further. It is
further mutually agreed that PART III and/or PART IV and/or PART V shall only apply and shall only form part of this Charter if expressly agreed and stated in Boxes 35, 39 and 40. If PART III and/or
PART IV and/or PART V apply, it is further mutually agreed that in the event of a conflict of conditions, the provisions of PART I and PART II shall prevail over those of PART III and/or PART IV and/or PART V to
the extent of such conflict but no further.
  

	 Signature (Owners)

 
 /s/ TRYGVE
SEGLEM                                        
                

Trygve Seglem
 Managing Director
	  	 Signature
(Charterers)
  
 /s/ JOSE SERGIO DE OLIVEIRA
MACHADO                                    

Jose Sergio de Oliveira Machado

President
 Fronape International
Company
  
 /s/ AGENOR CESAR JUNQUEIRA
LEITE                                        
  
 Agenor Cesar Junqueira Leite
 Director
 Petrobras Transporte, S.A.

 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the
form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss,
damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

 PART II 
 “BARECON 89” Standard Bareboat Charter 

 

	1.	Definitions 

 In this
Charter, the following terms shall have the meanings hereby assigned to them: 
 “The Owners” shall mean the
person or company registered as Owners of the Vessel. Mentioned in Box 3. 
 “The
Charterers” shall mean the Bareboat charterers and shall not be construed to mean a time charterer or a voyage charterer. 
  

	2.	Delivery (not applicable to newbuilding vessels) 

 The Vessel shall be delivered and taken over by the Charterers at the port or place indicated in Box 13, in such ready berth as the Charterers may direct. See Clause 32.

 The Owners shall before and at the time of delivery exercise due diligence to make the Vessel seaworthy and in every respect
ready in hull, machinery and equipment for service under this Charter. The Vessel shall be properly documented at time of delivery. 
 The delivery to the Charterers of the Vessel and the taking over of the Vessel by the Charterers shall constitute a full performance by the Owners of all the Owners’ obligations under Clause
2, and thereafter the Charterers shall not be entitled to make or assert any claim against the Owners on account of any conditions, representations or warranties expressed or implied with respect to the Vessel but the Owners shall be responsible
for repairs or renewals occasioned by latent defects in the Vessel, her machinery or appurtenances, existing at the time of delivery under the Charter, provided such defects have manifested themselves within 18 months after delivery unless otherwise
provided in Box 30. 
  

	3.	Time for Delivery (not applicable to newbuilding vessels) 

 The Vessel to be delivered not before the date indicated in Box 14 unless with the Charterers’ consent. 
 Unless otherwise agreed in Box 17, the Owners to give the Charterers not less than 30 running days’ preliminary and not less than 14 days’ definite notice of the date on which the Vessel
is expected to be ready for delivery. 
 The Owners to keep the Charterers closely advised of possible changes in the
Vessel’s position. 
  

	4.	Cancelling (not applicable to newbuilding vessels) 

 Should the Vessel not be delivered latest by the cancelling date indicated in Box 15, the Charterers to have the option of cancelling this Charter without prejudice to any claim the Charterers may
otherwise have on the Owners under the Charter. 
 If it appears that the Vessel will be delayed beyond the cancelling date,
the Owners shall, as soon as they are in a position to state with reasonable certainty the day on which the Vessel should be ready, give notice thereof to the Charterers asking whether they will exercise their option of cancelling, and the option
must then be declared within one hundred and sixty-eight (168) hours of the receipt by the Charterers of such notice. If the Charterers do not then exercise their option of cancelling, the seventh day after the readiness date stated in the
Owners’ notice shall be regarded as a new cancelling date for the purpose of this Clause. See also Clause 34. 
  

	5.	Trading Limits 

 The
Vessel shall be employed in lawful trades for the carriage of suitable lawful merchandise within the trading limits indicated in Box 19. The Charterers undertake not to employ the Vessel or suffer the Vessel to be employed otherwise than in
conformity with the terms of the instruments of insurance (including any warranties expressed or implied therein) without first obtaining the consent to such employment of the Insurers and complying with such requirements as to extra premium or
otherwise as the Insurers may prescribe. If required, the Charterers shall keep the Owners and the Mortgagees advised of the intended employment of the Vessel. 
 The Charterers also undertake not to employ the Vessel or suffer her employment in any trade or business which is forbidden by the law of any country to which the Vessel may sail or is otherwise illicit
or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to condemnation, destruction, seizure or confiscation. 
 Notwithstanding any other provisions contained in this Charter it is agreed that nuclear fuels or radioactive products or waste are specifically excluded from the cargo permitted to be loaded or carried
under this Charter. This exclusion does not apply to radio-isotopes used or intended to be used for any industrial, commercial, agricultural, medical or scientific purposes provided the Owners’ prior approval has been obtained to loading
thereof. 
  

	6.	Surveys (not applicable to newbuilding vessels) 

 Survey on Delivery and Redelivery. - The Owners and Charterers shall each appoint surveyors for the purpose of determining and agreeing in writing the condition of the Vessel at the time of
delivery and redelivery hereunder. The Owners shall bear all expenses of the On-Survey including loss of time, if any, and the Charterers shall bear all expenses of the Off-Survey including loss of

 time, if any, at the rate of hire per day or pro rata, also including in each case the
cost of any docking and undocking, if required, in connection herewith. As per Clause 27, Clause 6 to apply only at Redelivery. 
  

	7.	Inspection 

Inspection. - The Owners shall have the right at any time to inspect or survey the Vessel or instruct a duly authorised
surveyor to carry out such survey on their behalf to ascertain the condition of the Vessel and satisfy themselves that the Vessel is being properly repaired and maintained. Inspection or survey in dry-dock shall be made only when the Vessel shall be
in dry-dock for the Charterers’ purpose. However, the Owners shall have the right to require the Vessel to be dry-docked for inspection if the Charterers are not docking her at normal classification intervals. The fees for such inspection or
survey shall in the event of the Vessel being found to be in the condition provided in Clause 9 of this Charter be payable by the Owners and shall be paid by the Charterers only in the event of the Vessel being found to require repairs or
maintenance in order to achieve the condition so provided. All time taken in respect of inspection, survey or repairs shall count as time on hire and shall form part of the Charter period. 

The Charterers shall also permit the Owners to inspect the Vessel’s log books whenever requested and shall whenever required by the
Owners furnish them with full information regarding any casualties or other accidents or damage to the Vessel. For the purpose of this Clause, the Charterers shall keep the Owners advised of the intended employment of the Vessel. 

 

	8.	Inventories and Consumable Oil and Stores 

 A complete inventory of the Vessel’s entire equipment, outfit, appliances and of all consumable stores on board the Vessel shall be made by the Charterers in conjunction with the Owners on delivery
and again on redelivery of the Vessel. The Charterers and the Owners, respectively, shall at the time of delivery and redelivery take over and pay for all bunkers, lubricating oil, water and unbroached provisions, paints, oils, ropes and
other consumable stores in the said Vessel at actual documented cost. The Charterers shall redeliver the vessel with about the same quantity and quality of unbroached provisions, paints, oils, ropes and other consumable stores as the vessel
had onboard at delivery. the then current market prices at the ports of delivery and redelivery, respectively. 
  

	9.	Maintenance and Operation 

 (a) The Vessel shall during the Charter period be in the full possession and at the absolute disposal for all purposes of the Charterers and under their complete control in every respect. The Charterers
shall maintain the Vessel, her machinery, boilers, appurtenances and spare parts in a good state of repair, in efficient operating condition and in accordance with good commercial maintenance practice and, except as provided for in Clause 13
(I), they shall keep the Vessel with unexpired classification of the class indicated in Box 10 and with other required certificates in force at all times. 
 The Charterers to take immediate steps to have the necessary repairs done within a reasonable time failing which the Owners shall have the right of withdrawing the Vessel from the service of the
Charterers without noting any protest and without prejudice to any claim the Owners may otherwise have against the Charterers under the Charter. 
 Unless otherwise agreed, in the event of any improvement, structural changes or expensive new equipment becoming necessary for the continued operation of the Vessel by reason of new class requirements or
by compulsory IMO legislation costing more than 5 per cent. of the Vessel’s marine insurance value as stated in Box 27, then the extent, if any, to which the rate of hire shall be varied and the ratio in which the cost of compliance
shall be shared between the parties concerned in order to achieve a reasonable distribution thereof as between the Owners and the Charterers having regard, inter alia, to the length of the period remaining under the Charter, shall in the absence of
agreement, be referred to arbitration according to Clause 26. The Charterers are required to establish and maintain financial security or responsibility in respect of oil or other pollution damage as required by any government, including
Federal, state or municipal or other division or authority thereof, to enable the Vessel, without penalty or charge, lawfully to enter, remain at, or leave any port, place, territorial or contiguous waters of any country, state or municipality in
performance of this Charter without any delay. This obligation shall apply whether or not such requirements have been lawfully imposed by such government or division or authority thereof. The Charterers shall make and maintain all arrangements by
bond or otherwise as may be necessary to satisfy such requirements at the Charterers’ sole expense and the Charterers shall indemnify the Owners against all consequences whatsoever (including loss of time) for any failure or inability to do so.

 TOVALOP SCHEME. (Applicable to oil tank vessels only). - The Charterers are required to enter the Vessel under
the TOVALOP SCHEME or under any similar compulsory scheme upon delivery under this Charter and to maintain her so during the currency of this Charter.

 

  

			
	This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any
modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies
between the original BIMCO approved document and this computer generated document.

 PART II 
 “BARECON 89” Standard Bareboat Charter 

 

	(b)	The Charterers shall at their own expense and by their own procurement man, victual, navigate, operate, supply, fuel and repair the Vessel whenever required during the
Charter period and they shall pay all charges and expenses of every kind and nature whatsoever incidental to their use and operation of the Vessel under this Charter, including any foreign general municipality and/or state taxes. The Master,
officers and crew of the Vessel shall be the servants of the Charterers for all purposes whatsoever, even if for any reason appointed by the Owners. 

 Charterers shall comply with the regulations regarding officers and crew in force in the country of the Vessel’s flag or any other applicable law. 

(c) During the currency of this Charter, the Vessel shall retain her present name as indicated in Box 5 and shall remain under
and fly the flag as indicated in Box 5, until provisions of Part V applies. Provided, however, that the Charterers shall have the 
 liberty to paint the Vessel in their own colours, install and display their funnel insignia and fly their own house flag. Painting and re-painting, instalment and re-instalment and change of flag to be
for the Charterers’ account and time used thereby to 
 count as time on hire. 

(d) The Charterers shall make no structural changes in the Vessel or changes in the machinery, boilers, appurtenances or spare parts
thereof without in each instance first securing the Owners’ approval thereof. If the Owners so agree, the Charterers shall, if the Owners so require, restore the Vessel to its former condition before the termination of the Charter. 

(e) The Charterers shall have the use of all outfit, equipment, and appliances on board the Vessel at the time of delivery, provided the
same or their substantial equivalent shall be returned to the Owners on redelivery in the same good order and condition as when received, ordinary wear and tear excepted. The Charterers shall from time to time during the Charter period replace such
items of equipment as shall be so damaged or worn as to be unfit for use. The Charterers are to procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and
quality of materials) as not to diminish the value of the Vessel. The Charterers have the right to fit additional equipment at their expense and risk but the Charterers shall remove such equipment at the end of the period if requested by the Owners.

 Any equipment including radio equipment on hire on the Vessel at time of delivery shall be kept and maintained by the
Charterers and the Charterers shall assume the obligations and liabilities of the Owners under any lease contracts in connection therewith and shall reimburse the Owners for all expenses incurred in connection therewith, also for any new equipment
required in order to comply with radio regulations. 
 (f) The Charterers shall dry-dock the Vessel and clean and paint her
underwater parts whenever the same may be necessary, but not less than once in every eighteen calendar months after delivery unless otherwise agreed in Box 18. 
  

	10.	Hire 

 (a) The
Charterers shall pay to the Owners for the hire of the Vessel at the lump sum per calendar month as indicated in Box 21 commencing on and from the date and hour of her delivery to the Charterers and at and after the agreed lump sum for any
part of a month. Hire to continue until the date and hour when the Vessel is redelivered by the Charterers to her Owners. 

(b) Payment of Hire, except for the first and last month’s Hire, if sub-clause 

(c) of this Clause is applicable, shall be made in cash without discount every month in advance on the first day of each month in the
currency and in the manner indicated in Box 23 and at the place mentioned in Box 24. 
 (c) Payment of Hire for
the first and last month’s Hire if less than a full month shall be calculated proportionally according to the number of days in the particular calendar month and advance payment to be effected accordingly. 

(d) Should the Vessel be lost or missing, Hire to cease from the date and time when she was lost or last heard of. Any Hire paid in
advance to be adjusted accordingly. 
 (e) Time shall be of the essence in relation to payment of Hire hereunder. In default of
payment beyond a period of seven running days, the Owners shall have the right to withdraw the Vessel from the service of the Charterers without noting any protest and without interference by any court or any other formality whatsoever, and shall,
without prejudice to any other claim the Owners may otherwise have against the Charterers under the Charter, be entitled to damages in respect of all costs and losses incurred as a result of the Charterers’ default and the ensuing withdrawal of
the Vessel. 
 (f) Any delay in payment of Hire shall entitle the Owners to an interest at the rate per annum as agreed in
Box 22. If Box 22 has not been filled in the current market rate in the country where the Owners have their Principal

 Place of Business shall apply. 

 

	11.	Mortgage 

*) (a) Owners warrant that they have not effected any mortgage of the Vessel. At the time of entering into
this charter party the Owners have not effected any mortgage over the Vessel. However, Owners may prior to delivery hereunder finance the vessel and a mortgage (s). and the relevant Deed(s) of Covenant and Quiet Enjoyment Letter, the terms of which
shall not adversely affect the Charterers right to quite enjoyment of the vessel or which shall not be otherwise unreasonably onerous for Charterers, will be submitted to the Charterers for their approval prior to delivery of the Vessel. Charterers
shall give their approval or reasonable rejection of the proposed mortgage within 15 working days of receipt of relevant wording. If Charterers do not revert within the said period then approval shall be deemed to have been given and Charterers are
obliged to sign the Dee (s) of Covenant and accept the Quiet Enjoyment Letter as set out below. 
 The following is
subject to Charterers approval, which shall be given after the Charterers have reviewed the Deed(s) of Covenant and Quiet Enjoyment Letter, but prior to delivery of the Vessel hereunder, such approval shall not be unreasonably withheld:

 By their counter-signature on the Deed(s) of Covenant prior to delivery of the Vessel hereunder, the Charterers
undertake to have acquainted themselves with all terms, conditions and provisions of the said Deed(s) of Covenant. The Charterers undertake that they will comply with all such instructions or directions in regard to the employment, insurance,
repairs and maintenance of the Vessel, etc., as laid down in the Deed(s) of Covenant or as may be directed from time to time during the currency of the Charter by the Mortgagee(s) in conformity with the Deed(s) of Covenant. 

Charterers counter-signature on the Deed(s) of Covenant is conditioned to Mortgagee providing the Quiet Enjoyment Letter signed and
valid. 
 The Oners warrant that they will not effect any mortgagee(s) other than in accordance with the terms of this
Clause 11. 
  

	*)(b)	The Vessel chartered under this Charter is financed by a mortgage according to the Deed(s) of Covenant annexed to this Charter and as stated in Box 26. By their
counter-signature on the Deed(s) of Covenant, the Charterers undertake to have acquainted themselves with all terms, conditions and provisions of the said Deed(s) of Covenant. The Charterers undertake that they will comply with all such instructions
or directions in regard to the employment, insurances, repairs and maintenance of the Vessel, etc., as laid down in the Deed(s) of Covenant or as may be directed from time to time during the currency of the Charter by the Mortgagee(s) in conformity
with the Deed(s) of Covenant. (c) The Owners warrant that they have not effected any mortgage(s) other than stated in Box 26 and that they will not effect any other mortgage(s) without the prior consent of the Charterers.

	*)	(Optional Clauses 11(a) and 11(b) are alternatives; indicate alternative agreed in Box 26). 

 

	12.	Insurance and Repairs 

(a) During the Charter period the Vessel shall be kept insured by the Charterers at their expense against marine, war and Protection and
Indemnity risks in such form as the Owners shall in writing approve, which approval shall not be unreasonably withheld. Such marine war and P. and I. insurances shall be arranged by the Charterers to protect the interests of both the Owners and the
Charterers and mortgagees (if any), and the Charterers shall be at liberty to protect under such insurances the interests of any managers they may appoint. All insurance policies shall be in the joint names of the Owners and the Charterers as their
interests may appear. 
 If the Charterers fail to arrange and keep any of the insurances provided for under the provisions of
sub-clause (a) above in the manner described therein, the Owners shall notify the Charterers whereupon the Charterers shall rectify the position within seven running days, failing which Owners shall have the right to withdraw the Vessel from the
service of the Charterers without prejudice to any claim the Owners may otherwise have against the Charterers. 
 The
Charterers shall, subject to the approval of the Owners and the Underwriters, effect all insured repairs and shall undertake settlement of all costs in connection with such repairs as well as insured charges, expenses and liabilities (reimbursement
to be secured by the Charterers from the Underwriters) to the extent of coverage under the insurances herein provided for. 

The Charterers also to remain responsible for and to effect repairs and settlement of costs and expenses incurred thereby in respect of
all other repairs not covered by the insurances and/or not exceeding any possible franchise(s) or deductibles provided for in the insurances. 
 All time used for repairs under the provisions of sub-clause (a) of this Clause

 

  
 This document is a computer generated
BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO
approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

 PART II 
 “BARECON 89” Standard Bareboat Charter 

 

 and for repairs of latent defects according to Clause 2 above including any
deviation shall count as time on hire and shall form part of the Charter period. (b) If the conditions of the above insurances permit additional insurance to be placed by the parties, such cover shall be limited to the amount for each party set out
in Box 28 and Box 29, respectively. The Owners or the Charterers as the case may be shall immediately furnish the other party with particulars of any additional insurance effected, including copies of any cover notes or policies and
the written consent of the insurers of any such required insurance in any case where the consent of such insurers is necessary. 
 (c) Should the Vessel become an actual, constructive, compromised or agreed total loss under the insurances required under sub-clause (a) of Clause 12, all insurance payments for such loss
shall be paid to the Mortgagee, if any, in the manner described in the Deed(s) of Covenant, who shall distribute the moneys between themselves, the Owners and the Charterers according to their respective interests. The Charterers undertake to notify
the Owners and the Mortgagee, if any, of any occurrences in consequence of which the Vessel is likely to become a Total Loss as defined in this Clause. 
 (d) If the Vessel becomes an actual, constructive, compromised or agreed total loss under the insurances arranged by the Charterers in accordance with sub-clause (a) of this Clause, this Charter
shall terminate as of the date of such loss. 
 (e) The Owners shall upon the request of the Charterers, promptly execute such
documents as may be required to enable the Charterers to abandon the Vessel to insurers and claim a constructive total loss. 

(f) For the purpose of insurance coverage against marine and war risks under the provisions of sub-clause (a) of this Clause, the
value of the Vessel is the value indicated in Box 27 or the average values as assessed by three independent brokers (Fearnleys, Oslo, and Clarkson, London, and Poten, New York). The assessments to be done annually unless required more frequently by
the Deed of Covenants, reference clause 11. sum indicated in Box 27. 
  

	13.	Insurance, Repairs and Classification 

 (Optional, only to apply if expressly agreed and stated in Box 27, in which event Clause 12 shall be considered deleted). 

(a) During the Charter period the Vessel shall be kept insured by the Owners at their expense against marine and war risks under
the form of policy or policies attached hereto. The Owners and/or insurers shall not have any right of recovery or subrogation against the Charterers on account of loss of or any damage to the Vessel or her machinery or appurtenances covered by such
insurance, or on account of payments made to discharge claims against or liabilities of the Vessel or the Owners covered by such insurance. All insurance policies shall be in the joint names of the Owners and the Charterers as their interests may
appear. 
 (b) During the Charter period the Vessel shall be kept insured by the Charterers at their expense
against Protection and Indemnity risks in such form as the Owners shall in writing approve which approval shall not be unreasonably withheld. If the Charterers fail to arrange and keep any of the insurances provided for under the provisions of
sub-clause (b) in the manner described therein, the Owners shall notify the Charterers whereupon the Charterers shall rectify the position within seven running days, failing which the Owners shall have the right to withdraw the Vessel from the
service of the Charterers without prejudice to any claim the Owners may otherwise have against the Charterers. 

(c) In the event that any act or negligence of the Charterers shall vitiate any of the insurance herein provided, the Charterers
shall pay to the Owners all losses and indemnify the Owners against all claims and demands which would otherwise have been covered by such insurance. 
 (d)The Charterers shall, subject to the approval of the Owners or Owners’ Underwriters, effect all insured repairs, and the Charterers shall undertake settlement of all miscellaneous expenses
in connection with such repairs as well as all insured charges, expenses and liabilities, to the extent of coverage under the insurances provided for under the provisions of sub-clause (a) of this Clause. The Charterers to be secured
reimbursement through the Owners’ Underwriters for such expenditures upon presentation of accounts. 

(e) The Charterers to remain responsible for and to effect repairs and settlement of costs and expenses incurred thereby in
respect of all other repairs not covered by the insurances and/or not exceeding any possible franchise(s) or deductibles provided for in the insurances. 
 (f) All time used for repairs under the provisions of sub-clause (d) and (e) of this Clause and for repairs of latent defects according to Clause 2 above, including any deviation, shall count as
time on hire and shall form part of the Charter period. 
 The Owners shall not be responsible for any
expenses as are incident to the use and operation of the Vessel for such time as may be required to make such repairs. 
 (g) If the conditions of the above insurances permit additional insurance to be placed by the parties such cover shall be limited to the amount for each party

 set out in Box 28 and Box 29, respectively. The Owners or the Charterers as the
case may be shall immediately furnish the other party with particulars of any additional insurance effected, including copies of any cover notes or policies and the written consent of the Insurers of any such required insurance in any case where the
consent of such Insurers is necessary. 
 (h) Should the Vessel become an actual, constructive, compromised or
agreed total loss under the insurances required under sub-clause (a) of this Clause, all insurance payments for such loss shall be paid to the Owners, who shall distribute the moneys between themselves and the Charterers according to their
respective interests. 
 (i) If the Vessel becomes an actual, constructive, compromised or agreed total loss
under the insurances arranged by the Owners in accordance with sub-clause (a) of this Clause, this Charter shall terminate as of the date of such loss. 
 (j) The Charterers shall upon the request of the Owners, promptly execute such documents as may be required to enable the Owners to abandon the Vessel to Insurers and claim a constructive total
loss. 
 (k) For the purpose of insurance coverage against marine and war risks under the provisions of
sub-clause (a) of this Clause, the value of the Vessel is the sum indicated in Box 27. 
 (l) Notwithstanding
anything contained in Clause 9 (a), it is agreed that under the provisions of Clause 13, if applicable, the Owners shall keep the Vessel with unexpired classification in force at all times during the Charter period. 

 

	14.	Redelivery 

 The
Charterers shall at the expiration of the Charter period redeliver the Vessel at a safe and ice-free port or place as indicated in Box 16. The Charterers shall give the Owners not less than 30 running days’ preliminary and not less than
14 days’ definite notice of expected date, range of ports of redelivery or port or place of redelivery. Any changes thereafter in Vessel’s position shall be notified immediately to the Owners. 

Should the Vessel be ordered on a voyage by which the Charter period may be exceeded the Charterers to have the use of the Vessel to
enable them to complete the voyage, provided it could be reasonably calculated that the voyage would allow redelivery about the time fixed for the termination of the Charter. 
 The Vessel shall be redelivered to the Owners in the same or as good structure, state, condition and class as that in which she was delivered, fair wear and tear not affecting class excepted. 

The Vessel upon redelivery shall have her survey cycles up to date and class certificates valid for at least the number of months agreed
in Box 12. The Vessel shall be dry-docked less than 12 (twelve) months prior to redelivery to the Owners. 
  

	15.	Non-Lien and Indemnity 

The Charterers will not suffer, nor permit to be continued, any lien or encumbrance incurred by them or their agents, which might have
priority over the title and interest of the Owners in the Vessel. 
 The Charterers further agree to fasten to the Vessel in a
conspicuous place and to keep so fastened during the Charter period a notice reading as follows:- 
 “This Vessel is
the property of (name of Owners). It is under charter to (name of Charterers) and by the terms of the Charter Party neither the Charterers nor the Master have any right, power or authority to create, incur or permit to be imposed on the Vessel any
lien whatsoever.” 
 The Charterers shall indemnify and hold the Owners harmless against any lien of whatsoever nature
arising upon the Vessel during the Charter period while she is under the control of the Charterers, and against any claims against the Owners arising out of or in relation to the operation of the Vessel by the Charterers. Should the Vessel be
arrested by reason of claims or liens arising out of her operation hereunder by the Charterers, the Charterers shall at their own expense take all reasonable steps to secure that within a reasonable time the Vessel is released and at their own
expense put up bail to secure release of the Vessel. 
  

	16.	Lien 

 The Owners to
have a lien upon all cargoes and sub-freights belonging to the Charterers and any Bill of Lading freight for all claims under this Charter, and the Charterers to have a lien on the Vessel for all moneys paid in advance and not earned. 

 

	17.	Salvage 

 All salvage
and towage performed by the Vessel shall be for the Charterers’ benefit and the cost of repairing damage occasioned thereby shall be borne by the Charterers. 
  

	18.	Wreck Removal 

 In the
event of the Vessel becoming a wreck or obstruction to navigation the Charterers shall indemnify the Owners against any sums whatsoever which the Owners shall become liable to pay and shall pay in consequence of the

 

  

	
	This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the
original BIMCO approved document and this computer generated document.

 PART II 
 “BARECON 89” Standard Bareboat Charter 

 

 Vessel becoming a wreck or obstruction to navigation. 

 

	19.	General Average 

General Average, if any, shall be adjusted according to the York-Antwerp Rules 1974 or any subsequent modification thereof current at
the time of the casualty. The Charter Hire not to contribute to General Average. 
  

	20.	Assignment and Sub-Demise 

 The Charterers shall not assign this Charter nor sub-demise the Vessel except with the prior consent in writing of the Owners which shall not be unreasonably withheld and subject to such terms and
conditions as the Owners shall approve. 
  

	21.	Bills of Lading 

 The
Charterers are to procure that all Bills of Lading issued for carriage of goods under this Charter shall contain a Paramount Clause incorporating any legislation relating to Carrier’s liability for cargo compulsorily applicable in the trade; if
no such legislation exists, the Bills of Lading shall incorporate the British Carriage of Goods by Sea Act. The Bills of Lading shall also contain the amended New Jason Clause and the Both-to-Blame Collision Clause. 

The Charterers agree to indemnify the Owners against all consequences or liabilities arising from the Master, officers or agents signing
Bills of Lading or other documents. 
  

	22.	Bank Guarantee 

The Charterers undertake to furnish, before delivery of the Vessel, a first class bank guarantee or bond in the sum and at the
place as indicated in Box 25 as guarantee for full performance of their obligations under this Charter. (Optional, only to apply if Box 25 filled in). See Clause 30. 

 

	23.	Requisition/Acquisition 

(a) In the event of the Requisition for Hire of the Vessel by any governmental or other competent authority (hereinafter referred to as
“Requisition for Hire”) irrespective of the date during the Charter period when “Requisition for Hire” may occur and irrespective of the length thereof and whether or not it be for an indefinite or a limited period of time, and
irrespective of whether it may or will remain in force for the remainder of the Charter period, this Charter shall not be deemed thereby or thereupon to be frustrated or otherwise terminated and the Charterers shall continue to pay the stipulated
hire in the manner provided by this Charter until the time when the Charter would have terminated pursuant to any of the provisions hereof always provided however that in the event of “Requisition for Hire” any Requisition Hire or
compensation received or receivable by the Owners shall be payable to the Charterers during the remainder of the Charter period or the period of the “Requisition for Hire” whichever be the shorter. 

The Hire under this Charter shall be payable to the Owners from the same time as the Requisition Hire is payable to the Charterers.

 (b) In the event of the Owners being deprived of their ownership in the Vessel by any Compulsory Acquisition of the Vessel
or requisition for title by any governmental or other competent authority (hereinafter referred to as “Compulsory Acquisition”), then, irrespective of the date during the Charter period when “Compulsory Acquisition” may occur,
this Charter shall be deemed terminated as of the date of such “Compulsory Acquisition”. In such event Charter Hire to be considered as earned and to be paid up to the date and time of such “Compulsory Acquisition”. 

 

	24.	War 

 (a) The Vessel
unless the consent of the Owners be first obtained not to be ordered nor continue to any place or on any voyage nor be used on any service which will bring her within a zone which is dangerous as the result of any actual or threatened act of war,
war, hostilities, warlike operations, acts of piracy or of hostility or malicious damage against this or any other vessel or its cargo by any person, body or State whatsoever revolution, civil war, civil

 commotion or the operation of international law, nor be exposed in any way to any risks
or penalties whatsoever consequent upon the imposition of Sanctions, nor carry any goods that may in any way expose her to any risks of seizure, capture, penalties or any other interference of any kind whatsoever by the belligerent or fighting
powers or parties or by any Government or Ruler. 
 (b) The Vessel to have liberty to comply with any orders or directions as
to departure, arrival, routes, ports of call, stoppages, destination, delivery or in any other wise whatsoever given by the Government of the nation under whose flag the Vessel sails or any other Government or any person (or body) acting or
purporting to act with the authority of such Government or by any committee or person having under the terms of the war risks insurance on the Vessel the right to give any such orders or directions. 

(c) In the event of outbreak of war (whether there be a declaration of war or not) between any two or more of the countries as stated in
Box 31, both the Owners and the Charterers shall have the night to cancel this Charter, whereupon the Charterers shall redeliver the Vessel to the Owners in accordance with Clause 14, if she has cargo on board after discharge thereof
at destination or if debarred under this Clause from reaching or entering it at 
 a near open and safe port as directed by the
Owners or if she has no cargo on board, at the port at which she then is or if at sea at a near open and safe port as directed by the Owners. In all cases hire shall continue to be paid in accordance with Clause 10 and except as aforesaid all
other provisions of this Charter shall apply until redelivery. 
  

	25.	Commission 

 The
Owners to pay a commission at the rate indicated in Box 32 to the Brokers named in Box 32 on any Hire paid under the Charter but in no case less than is necessary to cover the actual expenses of the Brokers and a reasonable fee for their work If the
full Hire is not paid owing to breach of Charter by either of the parties the party liable therefor to indemnify the Brokers against their loss of commission. 
 Should the parties agree to cancel the Charter, the Owners to indemnify the Brokers against any loss of commission but in such case the commission not to exceed the brokerage on one year’s
Hire. See Box 32. 
  

	26.	Law and Arbitration 

  

	*)	26.1. This Charter shall be governed by English law and any dispute arising out of this Charter shall be referred to arbitration in London, one arbitrator being
appointed by each party, in accordance with the Arbitration Acts 1996 1950 

 And
1979 or any statutory modification or re-enactment thereof for the time being in force. On the receipt by one party of the nomination in writing of the other party’s arbitrator, that party shall appoint their arbitrator within fourteen
days, failing which the decision of the single Arbitrator appointed shall apply. If two Arbitrators properly appointed shall not agree they shall appoint an umpire whose decision shall be final. 

	*)	26.2. Should any dispute arise out of this Charter, the matter in dispute shall be referred to three persons at New York, one to be appointed by each of the
parties hereto, and the third by the two so chosen; their decision or that of any two of them shall be final, and for purpose of enforcing any award, this agreement may be made a rule of the Court. The arbitrators shall be members of the Society of
Maritime Arbitrators, Inc. of New York and the proceedings shall be conducted in accordance with the rules of the Society. 

	*)	26.3. Any dispute arising out of this Charter shall be referred to arbitration at the place indicated in Box 33, subject to the law and procedures applicable
there. 26.4. If Box 33 in Part I is not filled in, sub-clause 26.1 of this Clause shall apply. 

	*)	26.1., 26.2. and 26.3. are alternatives; indicate alternative agreed in Box 33.

 

  

	
	ADDITIONAL CLAUSES:

  

	27.	Surveys 

 The Owners and Charterers shall jointly
appoint a surveyor for the purpose of determining and agreeing in writing the condition of the Vessel at the time of re-delivery. A Class approved diver video inspection of the vessel hull below water line and of the thrusters may be included in the
survey report. Without prejudice of Clause 14 the Charterers shall bear all survey expenses and all other costs, if any, as well as all repair costs included. 
 The Charterers shall also bear all loss of time spent in connection with any repairs, which shall be paid at the rate of Hire per day or pro rata. 

 

	28.	Technical Management 

 Reference Clause 9. The
vessel shall be technically operated and managed by Transpetro. Charterers shall not change the technical operation or management without Owners’ consent, which shall not be unreasonably withheld. 

This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In
the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result
of discrepancies between the original BIMCO approved document and this computer generated document. 

													
		 		  		  		  		  		  	 OPTIONAL
 PART

 PART III 
 PROVISIONS TO APPLY FOR NEWBUILDING VESSELS ONLY 
 (Optional, only
to apply if expressly agreed and stated in Box 35) 
 29. Brazilian Tax 
 Any Brazilian tax on Charter Hire is for Charterers account. If any new or additional taxes or changes to existing taxes become applicable after the date of this Charter Party then this will be for the
account of the Charterers. If during this charter there are any import tax (permanent or temporary) imposed on the Vessel, or a withholding tax is imposed on the hire payments then these will be for Charterers account. 

30. Additional Security 
 Charterers are a 100%
subsidiary, directly or indirectly, of Petroleo Brasileiro S.A. Petrobras. If Petrobras should give up control of Charterers; i.e. reduce their holding in Charterers to less than 50%, then Owners have the right to have established security assuring
the full and complete accomplishment of all the duties and obligations set forth in this contract in a form satisfactory to the Owners. Charterers have the obligation to provide such collateral security. 

Transpetro undertake and Fronape International Company (FIC) hereby agrees that should FIC fail to fulfil any of its obligations under this charterparty
as they fall due, then upon written notice by the Owners to Transpetro and FIC, Transpetro shall be substituted as the Charterers herein and become liable for all past and future obligations as if they had been the Charterers ab initio. 

Notwithstanding the same FIC shall remain jointly liable for all and any obligations it may have had up to the date of any Owners’ notice given
pursuant to this clause. Any delay or impossibility in Transpetro obtaining official or other consents to become Charterers and to fulfil obligations hereunder shall not render void or voidable their liability to Owners in damages, as per Clause 10.

 Owners recognize that obtaining such consent may take time and Owners therefore undertake not to terminate the charter or take other action
which may interrupt service to Charterers within 60 days of giving this notice provided that the sole reason for delay in timely payment is caused by absence of such consents. Transpetro shall use its best endeavours to expedite the obtaining of
such necessary consents and agree to pay interest at LIBOR with montly rests on any outstanding sums until payment. 
 31. Construction

 The Vessel shall be built as a dynamically positioned (DP) shuttle tanker as per the specification in Attachment A. The newbuilding
specification and shipyard execution schedule shall be submitted to Charterers for their information. Charterers shall have the right to have full insight into the planning and implementation of the building of the vessel. This right of insight into
the planning and implementation of the construction shall not give cause to interference by Charterers into the planning and implementation process. Owners shall keep Charterers advised of all significant changes to the shipyard execution schedule
and of any significant issues regarding Classification of the vessel. Charterers shall be invited to attend as an observer to significant technical meetings (makers and shipyard interface meetings) and major factory acceptance tests. Charterers
shall have the right to have an observer present at the shipyard during the building, and Owners to provide office (desk) and communication facilities for same. Charterers shall have the right to attend at dock and sea trials. Charterers shall not
have the right to direct or communicate directly with the shipyard. Charterers shall have the right to participate, as observers only, together with the Owners representative at meetings with the shiyard during the building of the vessel.

 32. Delivery 
 Reference of Box 13,
14 and 15 and clause 2 and clause 3. Owners shall deliver and Charterers shall take delivery of the Vessel at the shipyard/safe anchorage (reference clause 31) upon completion of shipyard sea trials and DPPS test. 

The intention is to deliver the Vessel between 1 Jan - 30 March 2011 / 1 April - 30 June 2011. 
 33. Outline Specification 
 The Vessel outline specification, attached hereto as Attachment A shall
consist of the following: 
  

	 	•	 	 Vessel outline specification. 

  

	 	•	 	 Makers list of major items. 

Telemetry system as described in Vessel Outline Specification shall be provided by Charterers. 
 34. Force Majeure 
 Clause 4 shall not apply in case of force majeure under the Shipbuilding
Contract defined as follows: 
 If, at any time before actual delivery, either the construction of the VESSEL, or any performance required
hereunder as a prerequisite of delivery of the VESSEL, is delayed due to war, blockade, revolution, insurrection, mobilization, civil commotions, riots, strikes, sabotage, lockouts, acts of God or the public enemy, terrorism, plague or other
epidemics, quarantines, prolonged failure or restriction of electric current from an outside source, freight embargoes, if any, earthquakes, tidal waves, typhoons, hurricanes, storms or other causes beyond the control of the BUILDER or of its
sub-contractors, as the case may be, or by force majeure of any description, whether of the nature indicated by the forgoing or not, or by destruction of the BUILDER or works of the BUILDER or its sub-contractors, or of the VESSEL or any part
thereof, by fire, flood, or other causes beyond the control of the BUILDER or its sub-contractors as the case may be, or due to the bankruptcy of the equipment and/or material supplier or suppliers of long lead equipment with delivery time more than
18 months, or due to the delay caused by acts of God in the supply of parts essential to the construction of the VESSEL, then, in the envent of delay due to the happening of any of the aforementioned contingencies, the BUILDER shall not be liable
for such delay and the time for delivery of the VESSEL under this Contract shall be extended without any reduction in the Contract Price for a period of time which shall not exceed the total accumulated time of all such delays, subject nevertheless
to the BUYER’s right of cancellation and subject however to all relevant provisions of this Contract which authorize and permit extension of the time of delivery of the VESSEL. 
 The Owners undertake to promptly notify the Charterers of any occurrences of Force Majeure in consequence of which the delivery of the Vessel is likely to be delayed and shall take any and all possible
measures to minimize the effects of such occurance in the delivery of the Vessel. 
 35. Guarantee Clause 

In respect of any repairs of defects which appears within the scope of Clause 2 and within the time established in Clause 2 the Owners and Charterers
shall cooperate and use their best endeavours to recover any expenditure incurred in remedying such defects from the Builders, but the Owners shall be liable to the Charterers to the full amount of the expenditure, as established on Clause 2. The
Charterers shall cooperate with the Owners to prepare the guarantee claims to be presented to the Builder according to the guarantee clause of the Building Contract (which terms and conditions shall be informed to the Charterers in due time).

 The Owners authorize the Charterers to arrange for the guarantee works to be performed in accordance with the conditions established on the
Building Contract. Hire to continue during the period of guarantee works. 
 36. Bareboat Charter Registry 

Reference PART V and Boxes 40-41. Any costs due to flagging the Vessel in and out of the Bareboat Charter Registry and/or into the Underlying Registry
shall be for Charterers account. 
 37. Confidentiality 
 All details of this agreement to be kept strictly private and confidential by all parties involved. 
 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed
text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and this computer generated document. 

 OPTIONAL 
 PART      
 PART III 

PROVISIONS TO APPLY FOR NEWBUILDING VESSELS ONLY 
 (Optional, only to apply if expressly agreed and stated in Box 35) 
  

 38. Notices and Correspondence 
 Every notice or demand under this contract, including notice of Arbitration, shall be in writing, but may be given or made by fax which shall be sent to the Owners and the Charterers at their respective
addresses. 
 In respect of the Charterers at: 
 Fronape International company 
 c/o Transpetro / DTM / TM / Getran 5 

Av. Presidente Vargas, 328 - 4th floor 
 Rio
de Janeiro - RJ 
 20091-060 
 Brazil

 Fax no.: +55 21 3211 7400 
 In
respect of the Owners at: 
 Knutsen OAS Shipping AS 
 Smedasundet 40 
 P.O. Box 2017 
 5504 Haugesund 
 Norway 
 Fax no.: +47 52704040 
 This document is a computer generated BARECON 89 form printed by authority
of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO
assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

													
		 		  		  		  		  		  	 OPTIONAL
 PART

 PART III 

PROVISIONS TO APPLY FOR NEWBUILDING VESSELS ONLY 
 (Optional, only to apply if expressly agreed and stated in Box 35) 
  

			
	 Specifications and Building Contract

 
 (a) The Vessel shall be constructed in accordance with the Building Contract
(hereafter called “the Building Contract”) as annexed to this Charter, made between the Builders and the Owners and in accordance with the specifications and plans annexed thereto, such Building Contract, specifications and plans having
been counter-signed as approved by the Charterers.
  
 (b)
No change shall be made in the Building Contract or in the specifications or plans of the Vessel as approved by the Charterers as aforesaid, without the Charterers’ consent.

 
 (c) The Charterers shall have the right to send their representative to the
Builders’ Yard to inspect the Vessel during the course of her construction to satisfy themselves that construction is in accordance with such approved specifications and plans as referred to under sub-clause (a) of this
Clause.
  
 (d) The Vessel shall be built in accordance with
the Building Contract and shall be of the description set out therein provided nevertheless that the Charterers shall be bound to accept the Vessel from the Owners on the date of delivery by the Builders as having been completed and constructed in
accordance with the Building Contract and the Charterers undertake that after having so accepted the Vessel they will not thereafter raise any claims against the Owners in respect of the Vessel’s performance or specification or defects if any
except that in respect of any repair or replacement of any defects which appear within the first 12 months from delivery the Owners shall use their best endeavours to recover any expenditure incurred in remedying such defects from the Builders, but
shall only be liable to the Charterers to the extent the Owners have a valid claim against the Builders under the guarantee clause of the Building Contract (a copy whereof has been supplied to the Charterers) provided that the Charterers shall be
bound to accept such sums as the Owners are able to recover under this clause and shall make no claim upon the Owners for any difference between the amounts so recovered and the actual expenditure incurred on repairs or replacements or for any loss
of time incurred thereby.
  
 Time and Place of
Delivery
  
 (a) Subject to the Vessel having completed
her acceptance trials including trials of cargo equipment in accordance with the Building Contract and specifications to the satisfaction of the Charterers, the Owners shall give and the Charterers shall take delivery of the Vessel afloat when ready
for delivery at the Builders’ Yard or some other safe and readily accessible dock, wharf or place as may be agreed between the parties hereto and the Builders. Under the Building Contract the Builders have estimated that the Vessel will be
ready for delivery to the Owners as therein provided but the delivery date for the purpose of this Charter shall be the date when the Vessel is in fact ready for delivery by the Builders after completion of trials whether that be before or after as
indicated in the Building Contract. Notwithstanding the foregoing, the Charterers shall not be obliged to take delivery of the Vessel until she has been classed and documented as provided in this Charter and free for transfer to the flag she has to
fly. Subject as aforesaid the Charterers shall not be entitled to refuse acceptance of delivery of the Vessel and upon and after such acceptance the Charterers shall not be entitled to make any claim against the Owners in respect of any conditions,
representations or warranties, whether express or implied, as to the seaworthiness of the Vessel or in respect of delay in delivery or otherwise howsoever.
	  	 (b) If for any reason other than a default by the Owners under the Building Contract, the Builders become entitled under that
Contract not to deliver the Vessel to the Owners, the Owners shall upon giving to the Charterers written notice of Builders becoming so entitled, be excused from giving delivery of the Vessel to the Charterers and upon receipt of such notice by the
Charterers this Charter shall cease to have effect.
  
 (c)
If for any reason the Owners become entitled under the Building Contract to reject the Vessel the Owners shall, before exercising such right of rejection, consult the Charterers and thereupon

 

i)       if the Charterers do not wish to take delivery of the vessel
they shall inform the Owners within seven (7) days by notice in writing and upon receipt by the Owners of such notice this Charter shall cease to have effect; or

 
 ii)     if
the Charterers wish to take delivery of the Vessel they may by notice in writing within seven (7) days require the Owners to negotiate with the Builders as to the terms on which delivery should be taken and/or refrain from exercising their right to
rejection and upon receipt of such notice the Owners shall commence such negotiations and/or take delivery of the Vessel from the Builders and deliver her to the Charterers;

 
 iii)    in no
circumstances shall the Charterers be entitled to reject the Vessel unless the Owners are able to reject the Vessel from the Builders;
  

iv)    if this Charter terminates under sub-clause (b) or (c) of this Clause, the
Owners shall thereafter not be liable to the Charterers for any claim under or arising out of this Charter or its termination.
  

Guarantee Works
  

If not otherwise agreed, the Owners authorize the Charterers to arrange for the guarantee works to be performed in accordance with the building
contract terms, and hire to continue during the period of guarantee works. The Charterers have to advise the Owners about the performance to the extent the Owners may request.

 
 Name of Vessel

 
 The name of the Vessel shall be mutually agreed between the Owners and the
Charterers and the Vessel shall be painted in the colours, display the funnel insignia and fly the house flag as required by the Charterers.
  

Survey on Redelivery
  

The Owners and the Charterers shall appoint surveyors for the purpose of determining and agreeing in writing the condition of the Vessel at the
time of redelivery.
  
 Without prejudice to Clause 14 (Part
II), the Charterers shall bear all survey expenses and all other costs, if any, including the cost of docking and undocking, if required, as well as all repair costs incurred.

 
 The Charterers shall also bear all loss of time spent in connection with any
docking and undocking as well as repairs, which shall be paid at the rate of Hire per day or pro rata.

 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the
form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss,
damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

 PART IV 
 HIRE/PURCHASE AGREEMENT 
 (Optional, only to apply if expressly
agreed and stated in Box 39) 
  

			
	 On expiration of this Charter and provided the Charterers have fulfilled their obligations according to Part I and II as well as
Part III, if applicable, it is agreed, that on payment of the last month’s hire instalment as per Clause 10 the Charterers have purchased the Vessel with everything belonging to her and the Vessel is fully paid for.

 
 If the payment of the instalment due is delayed for less than 7 running days
or for reason beyond the Charterers’ control, the right of withdrawal under the terms of Clause 10(e) of Part II shall not be exercised. However, any delay in payment of the instalment due shall entitle the Owners to an interest at the rate per
annum as agreed in Box 22. If Box 22 has not been filled in the current market rate in the country where the Owners have their Principal Place of
Business shall apply.
  
 In the following paragraphs the
Owners are referred to as the Sellers and the Charterers as the Buyers.
  
 The Vessel shall be delivered by the Sellers and taken over by the Buyers on expiration of the Charter.
  

The Sellers guarantee that the Vessel, at the time of delivery, is free from all encumbrances and maritime liens or any debts whatsoever other
than those arising from anything done or not done by the Buyers or any existing mortgage agreed not to be paid off by the time of delivery. Should any claims, which have been incurred prior to the time of delivery be made against the Vessel, the
Sellers hereby undertake to indemnify the Buyers against all consequences of such claims to the extent it can be proved that the Sellers are responsible for such claims. Any taxes, notarial, consular and other charges and
expenses
	  	 connected with the purchase and registration under Buyers’ flag, shall be for Buyers’ account. Any taxes, consular and
other charges and expenses connected with closing of the Sellers’ register, shall be for Sellers’ account.
  

In exchange for payment of the last month’s hire instalment the Sellers shall furnish the Buyers with a Bill of Sale duly attested and
legalized, together with a certificate setting out the registered encumbrances, if any. On delivery of the Vessel the Sellers shall provide for deletion of the Vessel from the Ship’s Register and deliver a certificate of deletion to the
Buyers.
  
 The Sellers shall, at the time of delivery, hand
to the Buyers all classification certificates (for hull, engines, anchors, chains, etc.), as well as all plans which may be in Sellers’ possession.
  

The Wireless Installation and Nautical Instruments, unless on hire, shall be included in the sale without any extra payment.

 
 The Vessel with everything belonging to her shall be at Sellers’ risk
and expense until she is delivered to the Buyers, subject to the conditions of this Contract and the Vessel with everything belonging to her shall be delivered and taken over as she is at the time of delivery, after which the Sellers shall have no
responsibility for possible faults or deficiencies of any description.
  
 The Buyers undertake to pay for the repatriation of the Captain, officers and other personnel if appointed by the Sellers to the port where the Vessel entered the Bareboat Charter as per Clause 2
(Part II) or to pay the equivalent cost for their journey to any other place.

 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the
form must be clearly visible. In the event of any modification made to the pre-printed text of this document is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage
or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

 PART V 
 PROVISIONS TO APPLY FOR VESSELS REGISTERED IN A BAREBOAT CHARTER REGISTRY 

(Optional, only to apply if expressly agreed and stated in Box 40) 

 

			
	 Definitions
  

For the purpose of this PART V, the following terms shall have the meanings hereby assigned to them:

 
 “The Bareboat Charter Registry” shall mean the registry of the State
whose flag the Vessel will fly and in which the Charterers are registered as the bareboat charterers during the period of the Bareboat Charter.
  

“The Underlying Registry” shall mean the registry of the State in which the Owners of the Vessel are registered as Owners and to which
jurisdiction and control of the Vessel will revert upon termination of the Bareboat Charter Registration.
  
 Mortgage
  
 The Vessel
chartered under this Charter is financed by a mortgage and the provisions of Clause 11(b) Part II) shall apply.
	  	 Termination of Charter by Default
  

It the Vessel chartered under this Charter is registered in a Bareboat Charter Registry as stated in Box 41, and if the Owners shall default in the
payment of any amounts due under the mortgage(s) specified in Box 26, the Charterers shall, if so required by the mortgagee, direct the Owners to re-register the Vessel in the Underlying Registry as shown in Box 42.

 
 In the event of the Vessel being deleted from the Bareboat Charter Registry as
stated in Box 41, due to a default by the Owners in the payment of any amounts due under the mortgage(s), the Charterers shall have the right to terminate this Charter forthwith and without prejudice to any other claim they may have against
the Owners under this Charter.

 This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the
form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss,
damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document. 

 

 
 OUTLINE SPECIFICATION 
 (Doc. No. T0184-000-01 Rev. hrt1) 
 105,000 DWT SHUTTLE TANKER

 COSCO SHIPYARD GROUP LTD 
 18 October 2007 
 Q:\TEKNISK\Technical file\Newbuilding, projects\N255\105K Shuttle
Tanker Outline-20071018 (incl stern tunnel thruster)revhrt.doc 

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 INDEX 

 

					
	 010 General Description
	  	 	5	  
		
	 020 Principal Particulars
	  	 	6	  
		
	 030 Classification, Rules and Regulations
	  	 	7	  
		
	 040 Standards and Workmanship
	  	 	9	  
		
	 050 Plans and Documents
	  	 	9	  
		
	 060 Spare Parts and Tools
	  	 	9	  
		
	 100 Hull Structure
	  	 	9	  
		
	 200 Paint Scheme
	  	 	10	  
		
	 310 Cargo Pumping System
	  	 	11	  
		
	 320 Cargo Tank Vent and Inert Gas System
	  	 	12	  
		
	 330 Cargo Oil Tank Cleaning System
	  	 	12	  
		
	 340 Cargo Oil Heating System
	  	 	13	  
		
	 350 Other Cargo Equipment
	  	 	13	  
		
	 360 Bow Loading System
	  	 	13	  
		
	 410 Maneuvering Equipment
	  	 	15	  
		
	 420 Anchoring and Mooring Equipment
	  	 	15	  
		
	 430 Deck Equipment and Outfitting
	  	 	16	  
		
	 440 Lifesaving Equipment
	  	 	17	  
		
	 450 Fire Fighting System
	  	 	18	  
		
	 460 Hull Piping System
	  	 	19	  
		
	 500 Accommodation Arrangement
	  	 	20	  
		
	 510 Panel System
	  	 	21	  
		
	 520 Deck Covering
	  	 	21	  
		
	 530 Accommodation Equipment and Material
	  	 	22	  
		
	 540 Provision Stores and Refrigerating Plant
	  	 	23	  
		
	 550 Sanitary Equipment
	  	 	23	  
		
	 560 Air Condition System
	  	 	23	  
		
	 600 Engine Room Machinery General
	  	 	25	  
		
	 601 Propeller and Shafting
	  	 	25	  

  
 Page 2 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

					
	 602 Steam Generating Plant
	  	 	25	  
		
	 603 Electric Generating Plants
	  	 	25	  
		
	 604 Purifier
	  	 	25	  
		
	 605 Centrifugal Pump
	  	 	26	  
		
	 606 Rotary Pump
	  	 	26	  
		
	 607 Tubular Type Heat Exchanger
	  	 	26	  
		
	 608 Plate Type Heat Exchanger
	  	 	26	  
		
	 609 Piping
	  	 	26	  
		
	 610 Fuel Oil System
	  	 	27	  
		
	 611 Lubrication Oil System
	  	 	28	  
		
	 612 Cooling System
	  	 	28	  
		
	 613 Compressed Air System
	  	 	28	  
		
	 614 Steam, Condensate & Feed Water System
	  	 	28	  
		
	 615 F.W Sanitary System
	  	 	29	  
		
	 616 Engine Room Bilge System
	  	 	29	  
		
	 617 Maintenance Equipment, Workshop Machinery
	  	 	29	  
		
	 618 Engine Room Ventilation
	  	 	29	  
		
	 619 Waste Disposal System
	  	 	29	  
		
	 700 Automation System
	  	 	30	  
		
	 710 Control Space
	  	 	30	  
		
	 720 Automation System for Machinery
	  	 	30	  
		
	 730 Integrated Control and Monitoring System (ICMS)
	  	 	30	  
		
	 740 Cargo and Ballast Monitoring System
	  	 	30	  
		
	 750 Alarm and Calling System
	  	 	31	  
		
	 760 Dynamic Positioning System
	  	 	32	  
		
	 770 Miscellaneous
	  	 	34	  
		
	 800 Electric System
	  	 	36	  
		
	 810 Electric Source
	  	 	36	  
		
	 820 Switchboard
	  	 	37	  
		
	 830 Electric Motor and Starter
	  	 	38	  

  
 Page 3 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

					
	 840 Lighting System
	  	 	38	  
		
	 850 Navigation Equipment
	  	 	39	  
		
	 860 Radio Equipment
	  	 	39	  
		
	 870 Communication Equipment
	  	 	40	  
		
	 880 Entertainment Equipment
	  	 	40	  
		
	 890 Instrumentation
	  	 	40	  

  
 Page 4 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 010 General Description 
 General arrangement 
 The vessel shall be an ocean going single screw diesel engine driven
shuttle tanker with a protruded bulbous bow, a transom stern and one(1) continuous deck with a forecastle deck. The Bow Loading System (BLS) will be installed on main deck forward as outlined on the general arrangement (hereinafter called as the
G.A.). 
 The vessel shall follow the latest Guidelines for the DESIGN AND OPERATION OF DYNAMICALLY POSITIONED VESSELS (IMCA) and shall comply
with all relevant rules, regulations and requirements to ensure a safe and cost effective operation as an Offshore Shuttle Tanker. 
 In
addition the vessel must comply with the Petrobras Campos Basin Offshore Loading Guidelines for DP Shuttle Tankers Operations. (subject to detailed requirements provide by Owner) 
 Accommodation including navigation bridge shall be located aft as outlined on the G.A. 
 The
vessel shall have fore and aft peak tanks, cargo oil tanks, segregated water ballast tanks, fuel oil tanks, a pump room, a bow thruster room and an engine room as outlined on the G.A. 
 The cargo area shall be constructed with double bottom and double shell and shall consist of six (6) pairs cargo oil tanks, two (2) slop tanks and six (6) pairs of wing and double bottom
water ballast tanks. 
 The transverse and one (1) longitudinal bulkhead below the upper deck shall be of plane type. 

Peak tanks and six (6) pairs of wing and double bottom water ballast in way of the cargo area shall be designed as segregated water ballast tanks.

 A cooling water tank for stern tube shall be provided under the aft peak tank. 
 The vessel shall be equipped with one (1) tunnel and one (1) retractable azimuth bow thrusters, one (1) tunnel and one (1) retractable azimuth stem thrusters, one (1) mariner type
schilling rudder and one (1) controllable pitch propeller. 
 One (1) set of jib crane shall be provided near the midship for handling
the cargo oil hose. 
 One (1) combined signal and radar mast on the top of wheelhouse and one (1) fore mast shall be fitted.

  
 Page 5 of 40

					
	 

  
	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
 Heavy fuel oil tank and diesel oil tank in engine room side shall be
constructed with double shell and outer space of those tanks shall be void space. 
 The width of the outer void space shall be minimum 1.0
meter from shell. 
 Thruster room and access trunks shall have enough space for removing the biggest part of the electric motors for
maintenance purpose (removal of stair shall be allowed in this operation). 
 Intended cargo 

Crude oil having a flash point below 60°C (closed cup test) as compatible with the specification. 

020 Principal Particulars 
  

					
	 Dimensions
	  	Length over all	  	Apprx 246.80 m
	  	Length between perpendiculars	  	Apprx 233.00 m
	  	Breadth , moulded	  	Apprx 42.00 m
	  	Depth, moulded	  	Apprx 22.50 m
	  	Design draft, moulded	  	Apprx 15.00 m
	  	Scantling draught, moulded	  	Apprx 15.30 m
	 Deadweight
	  	At design draught	  	Apprx 103,000 DWT
	  	At scantling draught	  	Apprx 105,000 DWT
	 Capacity (100%)
	  	Cargo tanks including slop tanks	  	Apprx 122,000
m3
	  	Water ballast tanks	  	Apprx 41,000 m3
	  	Fresh water tanks	  	Apprx 300 m3
	  	Heavy fuel oil tanks	  	Apprx 2,400m3
	  	Diesel oil tanks	  	Apprx 500 m3
	 Main engine
	  	Type	  	MAN-B&W 7S60MC-C
licensee made
	  	MCR x rpm	  	15820 kW x105rpm
	  	NCR(90%MCR)	  	14238 kW x 105rpm
	  	Turbo charger	  	High efficiency
	 	 
	 Service speed at design draught
	  	Apprx 14.3 knots
	 Fuel oil consumption of main engine

(H.C.V.=10,200kcal/kg)
	  	Specific F.O.C. at NCR at shop test	  	 Apprx 170g/kW h

+ 5% toleranse

	  	Daily ME F.O.C. at Service speed	  	Apprx 55,6MT/day
	 	 
	 Cruising range
(L.C.V=9800kcal/kg)
	  	Apprx 12,600NM

  
 Page 6 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 030 Classification, Rules and Regulations 

Classification society & flag : 

DNV

 1A1, “tanker for oil ESP”, CSR, , E0, DYNPOS-AUTR, OPP-F, ICS, BOW LOADING, SPM, F-AMC, T-MON, VCS-2 

The vessel to be registered in NIS by the Buyer. 
 Rules and Regulations 
 The vessel shall comply with following rules, regulations and
requirement of the authorities in force at the date of contract signing. 
  

	 	•	 	 Maritime regulation of the registered country 

  

	 	•	 	 International convention for the safety of life at sea (SOLAS), 1974 with protocol, and the amendments 

 

	 	•	 	 International convention on load lines 1966 with protocol 

 

	 	•	 	 International convention for preventing collisions at sea, 1972 and amendments 

 

	 	•	 	 International telecommunication (ITU) radio regulations, 1982 and 1998. 

 

	 	•	 	 International convention for the prevention of pollution from ships (MARPOL), 1973 (annexes I, V and VI (regulation 12,13 and 16) with protocol of 1978
and amendment to annex I &V 

  

	 	•	 	 International convention on tonnage measurement of ship 

 

	 	•	 	 Suez canal navigation regulations and tonnage measurement of ship 

 

	 	•	 	 IMO resolution A.468(XII), “code of noise level on board ship” 

 

	 	•	 	 ISO 6954-1984(E) “guidelines for the overall evaluation of vibration in merchant ships” 

 

	 	•	 	 U.S. coast guide’ s regulations for foreign flag vessels operating in navigable waters of the united states: 

  
 Page 7 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 CFR title 33-part 155: oil or hazardous material pollution prevention regulations for
vessels 
 CFR title 33-part 156: oil or hazardous material transfer operations 

CFR title 33-part 157: rules for the protection of the marine environment relating to tank vessels carrying oil in bulk 

CFR title 33-part 159: marine sanitation devices 
 CFR title 33-part 164: navigation safety rules 
 CFR title 46- part 32.53: inert
gas system 
 CFR title 46- part 34.05: fire fighting system, where required 

CFR title 46- part 35.30: general safety rules 
 CFR title 46- part 35.35: cargo handling 
 CFR title 46- part 39 : vapor control
system 
  

	 	•	 	 OCIMF recommendations for oil tanker manifolds and associated equipment, 1991 

 

	 	•	 	 OCIMF guidelines and recommendations for the safe mooring of large ships at piers and sea islands 

 

	 	•	 	 OCIMF recommendations on equipment for the towing of disable tankers , September 1981 

 

	 	•	 	 OCIMF ship to ship transfer guide,1988 and 1997(for fixed mooring fitting) 

 

	 	•	 	 OCIMF mooring equipment guidelines(1st edition, 1992) 

  

	 	•	 	 OCIMF an information paper on pump room safety-section 3 

 

	 	•	 	 Recommendations for equipment and fittings — new ships and section 4 issues for future considerations 

 

	 	•	 	 OCIMF guideline for the prevention of oil spillages through cargo pump room sea valves(2an edition,1991) 

 

	 	•	 	 OCIMF recommendation for equipment employed in mooring of ships at single point mooring, 1993( for fixed fitting only) 

  
 Page 8 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

	 	•	 	 ILO crew accommodation on board ships, convention NO. 92 and 133 (except swimming pool) 

 

	 	•	 	 International electro technical commission publication 92- electrical installation in ships 

 

	 	•	 	 IMO recommendation on access in cargo and ballast tanks A272(VIII) and A(330)(IX) 

 

	 	•	 	 Canadian for foreign flagged vessels 

  

	 	•	 	 IMO A 751(18) interim standards for ship maneuverability 

 040 Standards and Workmanship 
 The following standards to be applied to the construction of
the vessel, as far as practicable except the fittings specially described hereinafter. 
  

	 	•	 	 ISO standard 

  

	 	•	 	 Chinese industrial standards (GB, CSQS, CB, YB, etc) 

  

	 	•	 	 Builder’s standards, and Builder’s standard practice 

 All workmanship entering into the construction of the vessel shall be in accordance with the Chinese Shipbuilding Standards and/or Builder’s standard practice, applicable to this kind of vessel,
subject to the approval of the Classification Society where necessary. 
 050 Plans and Documents 

All documents and name plates to be in English. Copies and deliver time to be discussed later 
 060 Spare Parts and Tools 
 Spare parts and tools shall be provided based on standard.

 Spare Parts Storage: The closed room shall be prepared for storage purpose. 
 100 Hull Structure 
  

			
	 Material
	  	 High tensile steel and mild steel
 application of higher tensile steel:
 upper and lower parts of longitudinal material

plating of centerline bulkhead
 high stressed
local structures in cargo tank region

		
	 Main hull
	  	longitudinal framing system
		
	 Cargo tank structure:
	  	double skin arrangement in way of bottom and wing tank
		
	 Bulkheads walkway:
	  	one(1) access platform at the upper part of side longitudinal bulkhead in water ballast tanks
		
	 Rudder:
	  	schilling mariner rudder

  
 Page 9 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 200 Paint Scheme 

 

											
	Area	  	system	  	
        No. of        

coat
	  	         Total        
DFT
 (mic.)

	 Flat bottom(up to bilge keel
level)
	  	 Epoxy A/C
 Epoxy tie
 Tin-free SPCA/F*
	  	1

1

2
	  	150
 100
 300

	 Side bottom and bottom (from
bilge keel to
scantling draught)
	  	 Epoxy A/C
 Epoxy tie
 Tin-free SPCA/F*
	  	1

1

2
	  	150
 100
 300

	 topside
	  	epoxy	  	2	  	300
	 Exposed weather
deck
	  	epoxy	  	2	  	300
	 Deckhouse
external
	  	 Epoxy
 polyurethane
	  	1

2
	  	125
 100

	 Cargo tanks
	  	**	  	 	  	 
	 Slop tanks
	  	Tar free epoxy	  	2	  	300
	 Water ballast
tanks
	  	Tar free epoxy	  	2	  	300
	 Fresh water
tanks
	  	 Epoxy primer
 Pure epoxy
	  	1

2
	  	50
 250

	 Accommodation
 and engine room
	  	Bare steel	  	 Ceramic zinc
 alkyd
	  	1

1
	  	35
 50

	  	Under lining 	  	Accommodation 	  	No coating	  	 	  	 
	 	  	 	  	E/R	  	Ceramic zinc	  	1	  	35
	 Hull Painting
	  	 	  	***	  	 	  	 

  

			
	Note*)	 	design lifetime of A/F is based on three (3) years. The final paint scheme may have alteration in number of coats and dry film thickness in accordance with the specification
of the paint manufacturer selected.

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

			
	Note**)	 	The vessel shall have one (1) segregation with cargo tanks fully coated with two (02) coats of Low VOC (S/V 82%) epoxy paint (2 x 150 microns d.f.t.). On the remaining
cargo tanks all areas under the main deck, up to 3.0 m below (but including all deck transverses) and all bottom areas up to 1.5 m high shall be coated with two (02) coats of Low VOC (S/V 82%) epoxy paint (2 x 150 microns
d.f.t.).
		
	Note ***)	 	Vessel hull and funnel shall be coated according to Charterers standard. Underwater part (bottom and bootop) shall be coated for 30 months period between drydockings and topside
shall be painted in black colour. Accommodations shall be coated in white colour and funnel marking details shall be supplied on due time to be included on the shipyard specification. Details for paint specification shall be discussed in due time to
take into account the drydocking cycle of the vessel.

 Flame cut edges of structural members in water ballast tanks and fresh water tanks shall be ground off to
“1C”-one(1) pass grinding. 
 Two (2) stripe coats shall be applied to cut free edge of structural members in water ballast tanks
and fresh water tanks. 
 Two (2) stripe coats shall be applied for Cargo Tanks. 
 Bolted type sacrificial zinc anodes in water ballast tanks based on 5 years lifetime. 
 5mA/m2 and
50% ballast ratio. 
  

					
	 ICCP system
	 	35mA/m2 for underwater hull	 	
		 	600mA/m2 for propeller	 	

 310 Cargo Pumping System 
  

			
	 Cargo segregation
	  	three (3) groups
		
	 Cargo oil pump
	  	three (3) 2,800m3/h × 130mlc (S.G. 1.025) Vertical, single stages, centrifugal, double suction, Electric motor driven, two (2) speeds
		
	 Cargo striping pump
	  	one (1), 200m3/h × 130mlc (S.G. 1.025) Vertical, twin screw pump, single speed, el. Motor driven
		
	 Cargo auto loading
	  	vacuum pump type auto-striping/priming system connected to three (3) Cargo pumps (three (3) air separators and vacuum pump unit)
		
	 Stripping eductor
	  	one (1), 400m3/h

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

			
		
	 Cargo valve
	  	wafer type butterfly valve with NBR seat in general Cast steel body for cargo manifold and shipside Cast iron body for others
		
	 Valve control
	  	hydraulic remote control through the ICMS for suction & main Discharge valves Manual for other valves in pump room and upper deck

 320 Cargo Tank Vent and Inert Gas System 

 

			
	 Cargo tank vent
	  	one (1) independent high velocity P/V valve per each cargo tank and slop tank, and one (1) common vent & inert gas main line with a vent mast
		
	 Portable gas free fan
	  	buyer’s supply
		
	 Pump room ventilation
	  	Two (2) electrical motor driven axial flow fan with mushroom ventilator for exhaust (20 air changes/hour)
		
	 Inert gas system
	  	one (1) 10,500m3/h, multi type Two (2) electrical motor driven blowers, 100% each
		
	 Hydrocarbon gas sampling system
	  	for pump room: total four (4) sampling points for ballast tanks: each one (1) point per tank

 I/G pressure indicator on the Wheel House shall be easily readable from the Cargo Control Station place. 

330 Cargo Oil Tank Cleaning System 
  

			
	 Tank cleaning system
	  	C.O.W and sea water washing
		
	 Tank cleaning heater
	  	one (1), 200m3/h, shell & tube type Heating up from 20°C to 70°C
		
	 Tank cleaning machine
	  	single nozzle, programmable type Ductile cast iron body
		
	 Portable T.C machine
	  	buyer’s supply
		
	 Tank cleaning hatch
	  	320mm dia. Bolted manhole
		  	- Two (2) for each C.O.T
		  	- One (1) for each slop tank
		
	 ODM system
	  	one (1) set as per IMO requirements

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 340 Cargo Oil Heating System 

 

			
	 Heating coil
	  	Al-brass, DN40mm dia. 2.0mm thickness
		
	 Heating media
	  	7kg/cm2 steam
		
	 Heating up temp.
	  	cargo oil tank & slop tank (starboard) 50°C to 60°C within 96 hours at 5°C S.W/2°C air temp Slop tank (port) 44°C to 66°C within 24 hours at 5°C
S.W/2°C air temp
		
	 Piping
	  	one (1) steam supply and one (1) drain main line

 350 Other Cargo Equipment 
  

			
	 Hand dipping device
	  	one (1), portable type
	 -1” deck seal valve
	  	three (3) for each C.O.T & one (1) for each slop tank
	 -2” deck seal valve
	  	one (1) for each C.O.T & slop tank

 360 Bow Loading System 
 One (1) set of bow loading system (BLS), allowing loading from a submerged offshore loading system (OLS) at rated of 8,000m3/h shall be provided on the bow at ship’s center. 
 BLS - BOW LOADING SYSTEM - All the equipments of this system shall be supplied by one maker. The loading manifold shall be located on the forecastle deck at the ship’s center line and the mooring
equipments (Roller Fair Lead and Chain Stopper) shall be located on a new platform over the load manifold. The loading manifold shall operate with a 20 inch North Sea Standard Valve connected to the extremity of a cargo hose 20 inch diameter and 110
m length, received from the F(P)SOs. Attention must be paid to the fact that at Campos Basin the mooring and cargo hose connections are made separately: the Hawser is pulled in and connected first and the cargo hose is pulled in and connected
afterwards. The arrangement of the BLS equipments must be adequate for this operation. 
 The traction winch shall have a minimum pulling
capacity of 70 t (0-15 m/min × 70 t; 0-40 m/min × 16.5 t; roper diam. = 20 - 120 mm; braking disc in stainless steel). 
 The BLS
line valves (except coupler valve and crude oil valve) shall be of the same maker and type of the vessel cargo system. 

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 The space between the main deck and the new platform shall be closed by two longitudinal bulkheads and
one fwd transverse bulkhead, in which shall be installed one bow door hydraulically operated, swing type (up and down) sliding type will not be accepted. Safe access shall be provided in order to allow a crew member to reach and disconnect/connect
the bridle from/to the cargo hose, so as to keep it free for an ESD II request. Safety devices shall be fitted at bow area in order to allow the safeguard of crew (rail for safety belt, etc). 
 Two complete BLS operation stations must be provided; one at bow area and one in wheelhouse. 
 A
drip tray must be provided to avoid small leakages from ball valve. 
 The bow loading system shall be designed also with the possibility to
discharge the vessel through the BLS (requirement for operation at Single Buoy Mooring discharging terminals). 

  
 Page 14 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 410 Maneuvering Equipment 

 

			
	 Steering gear
	  	one (1), electrical-hydraulic vane type (2×100% pump)
		
	 Schilling Rudder
	  	High performance Schilling Rudder shall be installed.
		
	 Bow thruster
	  	 one (1), tunnel type, CPP, 2,000kW
 one (1), Retractable azimuth type, CPP, 2,200kW

		
	 Stern thruster
	  	 one (1), tunnel type, CPP, about 1,100kW
 one (1), Retractable azimuth type, CPP, 2,200kW

		
	 Thruster safety margin:
	  	Under the Operational Weather Condition any one of the thrusters shall work continuously within the maximum limit of 85% of its maximum power.

 If CPP thrusters are used, each thruster shall have one independent hydraulic unit, with two hydraulic pumps and
auto-changeover. 
 If the vessel is fitted with M/E bridge wing control consoles, it shall be upgraded to have manual tunnel thrusters control
as well. 
 Rope Cutters shall be installed at the main propeller shaft and at each thruster in order to protect the propeller blades against
damage during mooring operations (as advised from Buyer that Rope Cutter is included in the thruster and propeller package). 
 420
Anchoring and Mooring Equipment 
  

			
	 Windlass & Winch
	  	Two (2), combined with mooring winch
		  	El.-hydraulic (high press) with non-auto-tension
		  	1C/L + 2M/D + 1W/H, each
		  	Manual band brake, local control
		
		  	El.-hydraulic (high press) with non-auto-tension
		  	16MT × 15m/min
		  	Six (6), 2M/D + 1W/H, each
		  	Manual band brake, local control
		  	A brake test kit shall be provided
		
	 Power pack for deck machinery
	  	BLS power pack located at bosun’s store shall be commonly used to operate forward deck machinery. One (1) power pack capable of operating two (2) mooring Winches by two
(2) hydraulic pumps at rated capacity shall Be provided at steering gear room

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

			
	 Anchor
	  	two (2), high holding power type (no spare anchor)
		
	 Anchor chain cable
	  	one (1), butt welded stud link type, grade 3
		
	 Chain stopper
	  	two (2), roller dog type
		
	 Mooring rope
	  	 sixteen (16), steel wire type

30mm dia. × 200mm, each

		
	 Mooring fitting
	  	mooring chock shall be provided
		
	 Emergency towing/SPM
	  	
	 -on aft deck

-on forward deck
	  	 one (1), drum or box storage type, as per SOLAS
 two (2), chain stopper, and one (10 chafe chain (8m)
 BLS fitting excluding chafing chain shall be
commonly
 Used for emergency towing

		
	 Fore wire
	  	 two (2), galvanized wore (IRWC)
 38mm dia. × 60m, each with manual storage reel

		
	 Mooring Arrangement
	  	The arrangement shall enable at least 6 mooring lines to be used on each area (4 head lines, 2 stern lines and/or breast lines). One strong point of 200t shall be provided on the
main deck aft to comply with Petrobras offshore standard.

 430 Deck Equipment and Outfitting 

 

			
	 Cargo slop tank
	 	 one (1) per tank

	 & ballast tank access
	 	 700×1, 250mm, oval type, horizontal swivel type hatch

		
	 Sludge handing manhole
	 	 one (1) per tank, coamingless manhole, 800×600mm

	 For cargo and slop tank
	 	
		
	 Ballast tank access
	 	 One (1) per tank, coamingless manhole, 800×600mm

		
	 Engine room hatch
	 	 one (1), bolted type for provision crane, 1.5m × 2.0m

		
	 Pump room hatch
	 	 one (1), bolted type by pump room davit, 1.8m × 1.8m

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

			
	 Accommodation ladder
	  	two (2), Al-alloy, vertical stowage type, fixed air motor driven
		
	 Wharf ladder
	  	buyer’s supply
		
	 Pilot ladder
	  	two (2), rope type without reel, each to be rigged on The lower platform of the accommodation ladder
		
	 Cargo tank ladder
	  	one (1) inclined ladder with upper vertical ladder for each tank
		
	 Ballast tank ladder
	  	two (2) vertical ladder for each tank in cargo area
		
	 Cargo hose handing Crane
	  	one (1), 15MT SWL, high pressure, hydraulic Single jib type hydraulic oil from power for mooring winches shall be Commonly used. (3.0m outreach from extreme
breadth)
		
	 Provision crane
	  	two (2), 10m/min, hoisting speed, 3.0m outreach from Extreme breadth, single jib type(3.2MT SWL, each)
		
	 BLS service crane
	  	one (1), 5MT SWL, high pressure, hydraulic Single jib type 10m/min. hoisting speed, 8.0m working radius
		
	 Pump room davit
	  	one (1), 0.9MT SWL, el. Motor driven
		
	 Sludge handing davit
	  	one (1), 0.2MT SWL, el. Motor driven
		
	 Helicopter deck
	  	steel helicopter deck with winch mark as per ICS shall be Provided on upper deck

 440 Lifesaving Equipment 
  

			
	 Life boat
	  	one (1), F.R.P., totally enclosed freefall type, 40 persons fresh water Cooled diesel engine with electrical starting
		
	 Lifeboat davit
	  	one (1), freefall type davit made of fabricated steel
		
	 Rescue boat and davit
	  	one (1), high speed rescue boat (25knots with 3 persons on board)
		  	Six (6) persons capacity with one (1) single point hinged type davit
		
	 Life raft
	  	Two (2) × 20p, davit launchable type
		  	Two (2) × 20p Inflatable throw overboard type
		  	One (1) × 6p Inflatable throw overboard type on forward area

  
 Page 17 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

			
		
	 Life raft davit
	  	one (1), single point hinged type davit
		
	 Pneumatic Line Thrower
	  	Following items shall be supplied:
	 (Supplied by Buyer)
	  	Two units, PLT Rescue 230 set, maker: Restech.
		  	Two units Art no. 1502 (Pivot Support) and two units Art no. 1503 (tube for Pivot Support). The tubes shall be installed in a permanent way at chain stopper deck and poop
deck
		  	Two units Art no. 7004 (Heavy duty projectile with rubber tip)
		  	One unit Art no. 3303 (Short launching tube)
		  	Three units Art no. 6101 (Ball projectile)
		  	One unit Art no. 6303 (ball launching tube)
		  	Vessel shall have compressor to fill-up air cylinders.
		
	 PORTABLE VHF
	  	6 (six) units, with following characteristics shall be supplied:
	 (Supplied by Buyer)
	  	Maritime mobile standard and Intrinsically safe With leather carrying case, spare batteries and desktop charger Minimum channels: 6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 71, 72,
73, 74 and 77

 One spot emergency light for ETA main deck aft shall be installed. 

450 Fire Fighting System 
  

			
	 Engine room
	  	high expansion foam system and sea water system
		
	 Cargo pump room
	  	high expansion foam system and sea water system
	
	 Local application fire fighting fresh water spray system for engine room space

		
	 Cargo tank deck
	  	low expansion foam system and sea water system
		
	 Others
	  	sea water and/or portable fire extinguisher
		
	 Bow Loading Area
	  	One unit of Remote Controlled Fire Monitor shall be installed for BLS (Bow Loading System) area fire fighting (especially Coupling Valve) with remote control at
wheelhouse.

  
 Page 18 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 Smoke and Fire Detectors shall be installed at AZ Thruster rooms. 

460 Hull Piping System 
  

			
	 Water ballast pump
	  	two (2), 2,000m3/h×25mwc, centrifugal, el. Motor driven
		
	 Ballast piping
	  	two (2) main line system
		
	 Valve control
	  	
	 - Valve for main
	  	remote hydraulic Controlled butterfly valves
	 - others
	  	manual butterfly valves
		
	 Ballast eductor
	  	one (1), 300m3/h, ductile cast iron body
		
	 Water ballast pipe
	  	STPY400 or STPG370 12.7mm or sch80, ERW, T/E coating
		
	 Cargo oil pipe
	  	STPY400 or STPG370 12.7mm or sch80, ERW, T/E coating inside
		
	 Inert gas system
	  	STPG370 sch40, ERW, T/E coating inside
		
	 Fire & wash deck pipe
	  	STPG370 sch40, ERW, aluminizing for weather deck
		
	 Hot/cold water pipe
	  	copper or CPVC
	 In accommodation
	  	
		
	 Refrigerant pipe
	  	copper
		
	 Hydraulic Pipe for valve control
	  	multi-core (max. 4 cores, sus3161 ERW, sheath)
		
	 Hydraulic Pipe for deck machinery
	  	
	 - Pressure line
	  	carbon steel, SMLS
	 - return
	  	STPG370 sch80, ERW
		
	 Oil spill/bilge line
	  	at accommodation front with space valve and “U”
	 On weather deck
	  	trap drains to slop tank (P&S)

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 500 Accommodation Arrangement 
 Complement 
 Vessel shall have accommodations and life-saving appliances for at least 40
people, as follows: 26 crew members in individual cabins with private bathroom, 2 cabins for cadets (4 places in each cabin) plus one cabin for repair team (6 men). Vessel shall have one mess room serving all crew, one smoking recreation room and
one non-smoking recreation room and a gymnasium. 
 Lay out 
 Spaces in accommodation, each with about 2,100mm free height, shall be grouped as follow: 
  

			
	 Public
space
	  	 Common mess
room
 Duty mess room
 Recreation room
(smokers)
 Recreation room (non-smokers)

Hospital
 Gymnasium

	 Officer space
	  	 Deck office

Engine office

	 Sanitary space
	  	 Private shower/toilet

Common W.C
 Hospital bath room

Officer laundry
 Crew’s laundry with drying
room
 Officer’s changing room

Crew’s changing room

	 Catering space
	  	 Galley

Scullery area

	 Navigation space
	  	 Wheelhouse (incl. radio space and chart
space)
 Computer Server Room (near Navigation Bridge)

	 Corridor space
	  	 Corridor

Stairway

	 Control space
	  	 Cargo control room

Engine control room in engine room

	 Machinery space
	  	 Air handling unit room

Emergency generator room
 Hydraulic Power unit
room for valve control
 Foam room & fire control station (emergency head quarter)

	 Provision space
	  	 Dry provision store

Refrigerated provision store

	 Sundry space
	  	 Converter room

Paint store
 Deck store

Garbage store
 Bonded store

Pipe/duct & electric cable trunk

Oxygen/acetylene bottle store
 Other sundry
stores and lockers

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 510 Panel System 

 

			
	 - partition wall
	  	total 50mm thick mineral wool board finished with 0.6mm thick gal. Steel coated with decorated PVC film on both sides
		
	 - lining wall
	  	total 25mm thick mineral wool board finished with 0.6mm thick gal. Steel coated with decorated PVC film on the visible side and gal. Steel on the other side.
		
	 - ceiling
	  	total 25mm thick mineral wool board finished with 0.6mm thick Steel coated with baked enamel paint
		
	Lining & ceiling For catering space	  	SUS sheet (0.6mm thick) on visible side instead of galvanized steel Sheet with PVC film or enamel paint

 520 Deck Covering 
  

			
	 Underlay
	  	latex approximately. 10mm thick
		
	 Carpet
	  	captain class cabin, senior officer class cabins
		
	 Vinyl sheet (2mm thick)
	  	other cabins and public spaces except for spaces with carpet office space, control space, navigation space, recreation rooms Gymnasium & corridor space
		
	 Tile on cement
	  	
	 - mosaic tile
	  	sanitary space except laundry with drying room and changing room
	 - quarry tile
	  	catering space, laundry with drying room and changing room

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 530 Accommodation Equipment and Material 

 

			
	 Electric heated glass
	  	three (3), for wheel house front window
		
	 Window wiper
	  	three (3), electric single blade straight type
		
	 Clear view screen
	  	two (2), powered clear view screen (350mm dia.)
		
	 Wooden furniture
	  	melamine plastic laminate
		
	 Elevator
	  	shall not be provided

 One (1) galley shall be furnished with following equipment: 
 One (1)-electric galley range with 4 plates and 1 oven (approximately 15kw) 
 One (1)-electric
microwave oven (approximately 2.8kw) 
 One (1)-electric mixing machine (approximately 30L) 

One (1)-electric refrigerator (approximately 400L) 
 One (1)-electric waste dispenser (approximately 0.75kw) 
 One (1)-electric frying pan
(approximately 5.0kw) 
 One (1)-electric deep fat frier (approximately 7.0kw) 
 One (1)-electric potato peeler (approximately 3.6kg) 
 One (1)-electric meat slicer (portable,
approximately 0.15kw) 
 One (1)-stainless steel hood with grease filter 
 One (1)-working table with drawer 
 Two (2)-dresser with double sinks, stainless steel top with
drawer 
 One (1)-locker with 3 shelves, stainless steel 
 Two (2)-plate rack with cup hook 
 One (1)-cup board 

One (1)-connection oven for bakery 
 One
(1) common scullery area shall be provided. 
 Scullery area shall be furnished with following equipment: 

One (1)-electric dish washer (about 25 racks/h, front loading type) 
 One (1)-electric hot plate (about 1.0kw) 
 One (1)-electric toaster (4 slicers) 

One (1)-electric water boiler (approximately 9.0L) 
 Three (3)-electric coffee machine (approximately 1.8L) 
 One (1)-electric refrigerator
approximately 200L) 
 One (1)-stainless steel dresser with double sink 
 One (1)-plate rack and cupboard 

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

 One (1)-jug and cup hook 
 One (1)-working table with drawer (for utensil and cutlery) 
 One (1)-electric microwave oven
(approximately 2.8kw) 
 Two (2) laundries shall be provided with following equipment: 

Laundry equipment (1-officer’s laundry, 1-crew’s laundry) with follows: 
 Two (2)-automatic washing machine (about 7.0kg) 
 One (1)-electric drying tumble (about 5.0kg)

 One (1)-electric hand iron (approximately 1.0kw) 
 One (1)-ironing board with working table 
 One (1)-laundry tub (stainless steel) with hot and cold
fresh water faucets 
 One (1)-steel shelf 
 One (1)-stainless steel locker 
 One (1) drying room with one (1) 1.5kw electric heater
and four (4) hanging rails with hook (crew’s laundry only) 
 540 Provision Stores and Refrigerating Plant 

Refrigerated provision stores volume and temperature of compartment shall be as follows. 

 

					
	Compartment	  	Volume(m3)
	  	Temperature(°C)
	 Meat room
	  	~20	  	-23
	 Fish room
	  	~10	  	-23
	 Vegetable room
	  	~20	  	+4
	 Lobby
	  	~10	  	 
	 Dry provision store
	  	~40	  	Air conditioned

 Volume of each compartment may be adjusted in accordance with detail design of the accommodation arrangement. 

550 Sanitary Equipment 
  

			
	Toilet system	  	vacuum type
		
	Drinking water fountain	  	three (3), self contained deck mounting type

 560 Air Condition System 
 Central, high pressure, single duct with heating system, R-407C, direct expansion type 

  
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	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  

							
	  	  	  	  	Temperature(°C)
Dry bulb	  	 Relative
 humidity (%)

	 Summer
season
	  	Outside air	  	+35	  	70
	 	  	Inside air	  	+27	  	50
	 Winter
season
	  	Outside air	  	-15	  	 
	 	  	Inside air	  	+21	  	50

  

			
	Fresh air ratio:	  	50%
		
	Air handling unit:	  	two (2), 50%
		
	Condensing unit:	  	two (2), 50%
		
	Heating medium:	  	7kg/cm2, saturated steam

 Air changing rate (according to the rules /regulations) 

 

					
	compartment	  	
Air change

per hour
	  	Remarks
	Private space	  	6	  	 
	Public space	  	8	  	 
	Office space	  	8	  	 
	Catering space	  	8	  	Spot air cooling/heating
	Changing room	  	3	  	Spot air cooling/heating
	Wheelhouse/radio space/chart space	  	10	  	Spot air cooling/heating
	Dry provision store	  	5	  	Spot air cooling/heating
	Laundry& drying room	  	8	  	Spot air cooling/heating
	Cargo control room	  	10	  	 

 Remark: a fan coil unit for galley, one (1) set × 20,000kcal/h 

  
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	 	 Outline Specification
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	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 600 Engine Room Machinery General 
  

			
	H.F.O.	  	600cst at 50°C
	Cooling	  	centralized F.W. cooling

 Common F.O. system shall be applied for M/E & G/E. 
 601 Propeller and Shafting 
  

			
	Propeller	  	one (1), controllable pitch, Ni-Al-Br
		
	Stern tube seal	  	compact lip seal (subject to discussion with Maker), 3-aft and 2-forward
		
	Stern tube bush	  	cast iron with white metal lining
		
	Inter shaft bearing	  	self lubricated, F.W cooling

 602 Steam Generating Plant 
  

			
	Auxiliary boiler	  	one (1), 20 ton/h × 7 kg/cm2
		
	Exhaust gas economizer	  	one (1), 1.2 ton/h × 7 kg/cm2 at M/E NCR

 603 Electric Generating Plants 
  

			
	Main generator set	  	four (4), 2500kw × 720rpm, IP23, 4-stroke, inline
		
	Emergency generator set	  	one (1), 700kW × 1800rpm, IP23 (MDO)

 604 Purifier 
  

			
	H.F.O purifier	  	two (2), 3100L/h, automatic, self cleaning, sg=1.01
		
	Main L.O. purifier	  	two (2), 2100L/h, automatic, self cleaning
		
	D.O purifier	  	one (1), 600 L/h, automatic, self cleaning

  
 Page 25 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 605 Centrifugal Pump 
  

							
		  	Casing	  	impeller	  	shaft
	F.W and feed W	  	cast iron	  	bronze	  	stainless steel
	S.W (Ballast, Fire & Cooling)	  	bronze	  	stainless steel	  	stainless steel
	S.W	  	bronze	  	phosphor bronze	  	stainless steel

 606 Rotary Pump 
  

							
		  	Gear pump	  	screw pump	  	single rotor pump
	Casing	  	cast iron	  	cast iron	  	cast iron
	Power rotor	  	—  	  	carbon steel	  	stainless steel
	Idle rotor	  	—  	  	nodular cast iron	  	—  
	Gear	  	carbon steel	  	—  	  	—  
	Shaft	  	carbon steel	  	—  	  	—  
	Stator	  	—  	  	—  	  	synthetic rubber

 607 Tubular Type Heat Exchanger 
  

			
	Shell	  	steel plate or steel pipe
	Water box	  	cast iron or steel fabricated
		  	Neoprene lining internally for S.W box
	Tube plate	  	naval brass
	Tube	  	Aluminum brass

 608 Plate Type Heat Exchanger 
  

			
	Plate	  	titanium for S.W
		  	Stainless steel for F.W/L.O
		
	Frame	  	mild steel

 609 Piping 
  

					
	Cooling S.W	  	65mm and above	  	SPP or STPY, polyethylene coating inside
		  	50mm and below	  	STPG370E, sch. 80, galv.
			
	Cooling F.W	  	all size	  	SPP
			
	Compressed air	  		  	

  
 Page 26 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
  

					
	starting air	  		  	STPG370S, sch40
	Control air	  		  	copper or STPG370E, sch.40
	General Service	  		  	STPG370E, sch.40
			
	Lubrication oil	  	all size	  	SPP
	Fuel oil	  		  	
	F.O circulating	  		  	STPG370S, sch.40
	Purifier	  		  	STPG370E, sch.40
	Feed water and	  	feed water delivery	  	STPG370S, sch.40
	Condensate	  	other	  	SPP
			
	Steam	  	supply 16kg/cm2	  	STPG370S, sch.40
		  	other	  	SPP
			
	E/R bilge	  	all size	  	STPY or STPG370E, sch.40, galv.
			
	Sanitary F.W	  	all size	  	copper or SPP, galv.
			
	Sewage discharge	  	all size	  	STPG370E, sch.40, galv.
			
	Heating coil*	  	all size	  	STPG370s, sch.80
			
	Exhaust pipe	  	all size	  	welded steel plate or SPP

  

	*	drum type heating unit shall be provided. 

610 Fuel Oil System 
  

	1-	Fuel oil transfer pump 

  

	1-	Diesel oil transfer pump 

  

	2-	M.E & G.E fuel oil supply pump 

  

	2-	M.E & G.E fuel oil circulating pump 

  

	1-	Auxiliary boiler F.O. boost pump 

  

	1-	M.E. & G.E viscorator 

  

	2-	M.E. & G.E fuel oil heater 

  

	2-	Auxiliary boiler fuel oil heater 

  

	1-	M.E. & G.E. fuel oil auto filter 

  

	3-	Fuel oil flow meter 

  
 Page 27 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 611 Lubrication Oil System 
 Uni-lubrication oil system shall be applied for main engine
according to the main engine manufacture’s latest design 
  

	1-	lubrication oil transfer pump 

  

	2-	main lubrication oil pump 

  

	1-	M.E. L.O cooler, plate type 

  

	1-	M.E. L.O auto. Filter 

 612 Cooling System

 Central cooling fresh water system shall be provided 
  

	2-	main cooling sea water pump 

  

	2-	Low temperature fresh water pump 

  

	1-	I.G scrubber C.S.W pump 

  

	2-	Deck water seal C.S.W pump 

  

	2-	M.E. J. C. F. W. pump 

  

	2-	Central F.W. cooler, each 50%, plate type 

  

	1-	M.E. air cooler cleaning pump 

  

	1-	anti-fouling device for cooling S.W 

 613
Compressed Air System 
  

	2-	Main air compressor, reciprocating, water cooled 

  

	1-	General service air compressor, screw, air cooled 

  

	1-	Control air compressor, screw, air cooled 

  

	2-	Main air reservoir 

  

	1-	General Service air reservoir 

  

	1-	Control air reservoir 

  

	2-	Control air dryer 

 614 Steam,
Condensate & Feed Water System 
  

	2-	Auxiliary boiler feed pump 

  

	2-	Boiler water circulating pump 

  

	1-	Atmospheric dump drain condenser 

  
 Page 28 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 615 F.W Sanitary System 
  

	1-	F.W. generator, 30 ton/day, plate type 

  

	1-	F.W. hydrophore unit 

  

	1-	calorifier 

  

	2-	Hot water circulating pump 

  

	1-	F.W sterilizer 

 616 Engine Room Bilge System

  

	2-	Fire, bilge & G.S. pump 

  

	1-	 Oily water separator,
5m3/h 

 

	1-	Sludge pump 

  

	1-	Engine room bilge pump 

 617 Maintenance
Equipment, Workshop Machinery 
  

	1-	Engine room crane, overhead type 

  

	1-	Lathe 

  

	1-	Drilling machine 

  

	1-	Grinder 

  

	1-	Gas welder 

  

	1-	Electric arc welder 

 618 Engine Room
Ventilation 
  

	4-	Engine room supply fan, two (2) sets reversible, and axial flow type 

  

	1-	Purifier room exhaust fan. Mushroom header type 

  

	1-	Exhaust fan for welding space 

  

	1-	Unit cooler for engine control room, package type 

 619 Waste Disposal System 
  

	1-	Incinerator, 500,000kcal/h 

  

	1-	Sewage treatment, biological, vacuum device combined type 

  
 Page 29 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 700 Automation System 
 Remote and automatic controls and instrumentation shall be provided
for the propulsion plant and auxiliary according to the requirements of the class for unattended machinery space. 
 710 Control Space

 Engine control room (ECR) 
 Cargo
control room (CCR) 
 Wheelhouse 

720 Automation System for Machinery 
  

			
	Main engine remote control system	  	wheelhouse, bridge wings and ECR
	Auxiliary equipment control system	  	
	 Steam generating plant
	  	local manual/automatic control
	 Electric generating plant
	  	remote manual/ automatic control

 730 Integrated Control and Monitoring System (ICMS) 
 Redundant process station 
 Man-machine interface 

2×20” CRT, 2 × keyboard, 2 × printer in ECR 
 2×20” CRT, 2 × keyboard, l × printer in CCR 
 2×20” CRT, 2
× keyboard in wheelhouse 
 1× UPS 
 Alarm and monitoring for engine room operation 
 Binary signal: approximately 150 points

 Analog signal: approximately 100 points 
 Stand-by start of essential pumps in engine room 
 Control and monitoring for cargo/ballast system

 740 Cargo and Ballast Monitoring System 
 Remote sounding and draught measuring system: 
 Air purge type, for each water
ballast tank, peak tank and draught (4) 
 Electric pressure transducer type, for each H.F.O & D.O. storage, settling,
service tank 
 Draught measurement 
 Cargo monitoring system: 
 Integrated into ICMS 

Cargo tanks and slop tanks level (radar beam type) and temperature (2 points/tank) 

Remote operation and indication of cargo valve and ballast valve 
 Cargo manifold pressure indication 
 Remote control reading of liquid
pressure/temperature 

  
 Page 30 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 Cargo Control System: 
 Cargo Control System shall be installed with two
(2) control stations located in the Wheel House. The system shall allow the supervision and control of cargo load and discharge operations from either CCR or Wheel House. All the information and controls necessary for a safe cargo loading
operation shall be available at both sites, including start/stop/control of cargo and ballast pumps, open/close of the cargo and ballast valves needed for those operations, cargo and ballast tanks level and temperature measurement and inert gas.
Cargo tanks level measurement system shall be of Radar Type with readings at Wheelhouse and CCR. 
 Ballast Monitoring System: 

Ballast tanks and peak tanks level 
  

			
	Independent overfill alarm system	  	to be provided
		
	Loading calculator	  	one (1), on-line

 750 Alarm and Calling System 
  

	1-	emergency general alarm system 

  

	1-	fire detection system 

  

	1-	foam release alarm system 

  

	1-	emergency engineer alarm system 

  

	1-	hospital calling system 

  

	1-	ref. chamber alarm system 

  

	1-	engine room dead man alarm system 

  

	1-	engine room patrol man call alarm 

 The alarm
and monitoring system shall have one Operator Station at Wheel House and one at ECR. Bilge Alarm for Thrusters rooms shall generate audio and visual indication on ECR, CCR and Wheel House. All pitch command and feed back signals as well the power
consumption and trip signals to have failsafe (wire break) and out-of-range monitoring functions. 
 Alarms shall be provided for redundant
power supplies and UPS. 

  
 Page 31 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 760 Dynamic Positioning System 
 DPS - DYNAMIC POSITIONING SYSTEM A dual system, SDP21 with
two (02) SDP-OS Operator Station, one Joystick Station and a Dual Redundant Controller Unit, type DPC-22 shall be fitted. 
 DP sensors to
be included in the system are: 2 MRUs, 2 Wind Sensors with separated displays and 2 Gyros (one can be the vessels Gyro), both being capable to be used in DP System and navigation, as well. 
 DP system shall be interfaced to the thrusters, CPP, Rudder, ME, Power Management System, Vessel Monitoring and Control System and Vessels draft. The system shall incorporate the following softwares:
“Tandem Mode”, Weather Vane Mode, “On Line Capability Plot”, “On Line Consequence Analysis” and “Motion Prediction”. One wheelhouse display for Hawser Tension, with large digits shall be provided
(Simrad/London Electronics Ltd P1754 or equivalent). 
 One (1) DP Operator chair installed over rails that enable the chair to access all
control consoles to be provided. 
 PRS - Position Reference Systems: The vessel shall be fitted with: one ARTEMIS MK5, one DARPS 700 and one
Fanbeam MK4. The antennas of the Artemis, the Fanbeam and one DARPS GPS shall be installed on the forward mast. Receivers for GPS corrections to be included: IALA, Petrobras UHF465, Fugro (Spot Beam and Inmarsat). 

PMS - POSITION MONITORING SYSTEM - An independent system capable of logging all reference systems and to evaluate the function of same systems in
parallel with DP systems (BLOM Logger or similar) shall be fitted. All logged data shall be available for retrieval as open files (excel or similar). 
 THRUSTERS (Can be hydraulic CPP or fixed pitch with variable frequency driver) 
 ZERO PITCH
SYSTEM: M/E Controlled Pitch Propeller shall be fitted with a Zero Pitch System. 
 ME shall be prepared for DP operation with close attention
for slow speed operation. 
 New auxiliary thrusters to be installed as follows: 

 

	 	•	 	 one (1) bow tunnel thruster with 2,000 kW; 

  

	 	•	 	 one (1) stern tunnel thruster with 1,100 kW; 

  

	 	•	 	 one bow azimuth thruster (retractable or swing-up type) with 2,200kW; 

 

	 	•	 	 one stern azimuth thruster (retractable or swing-up type) with 2,200 kW; 

  
 Page 32 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 The vessel shall load at F(P)SO’s equipped either with turret system or spread moored system. The entire integrated DP system, including power units, shall have the following Operating Weather
Conditions for mooring / loading operations / unmooring: 
  

									
	Wave:	  	    Hs = 3.5 m	  	 	Tp = 9.0 s	  	  	
	Wind	  	    Vv = 15,0 m/s	  				  	
	Current	  	    Vc =1.10 m/s	  				  	

 DP Capability Plots shall be calculated considering: 

 

	 	•	 	 Turret type F(P)SO’s: waves and wind in the same direction of the shuttle tanker (0 degree with bow) and the current rotating.

  

	 	•	 	 Spread Moored type F(P)SO’s: waves and wind in the same direction of the shuttle tanker (0 degree with bow) and the current rotating, as well as
current in the same direction of the shuttle tanker (0 degree with bow) and wind/waves rotating. 

 The Capability Plots shall
be calculated both for normal ballast condition and for full load condition. For each condition, the following sub-conditions shall be considered: 
 all thrusters available (bow tunnel thruster, bow azimuth thruster, stern azimuth thruster, stern tunnel thruster and main propeller × rudder); 

all thrusters available except the bow tunnel thruster; 
 all thrusters available except the bow azimuth thruster; 
 all thrusters available
except the stern tunnel thruster; 
 all thrusters available except the stern azimuth thruster; 

all thrusters available except the set main propeller × rudder. 
 Each Load Condition × Thruster Availability shall be plotted considering current velocities of 0.5 knot, 1.0 knot, 1.5 knots and 2.0 knots and wind velocities of 6.0 m/s, 10.0 m/s, 14.0 m/s and 16.0
m/s. 
 There shall be presented 96 Capability Plots. In earlier design stage, five (5) cases with 2.0 knots current and 16.0m/s wind shall
be presented. 
 Although not required by class, redundancy at control and supervision level shall be extensively implemented. 

  
 Page 33 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 FMEA (FAILURE MODE AND EFFECT ANALYSIS) shall be performed by a third party, and shall include a theoretical study and proving trials. It shall be performed to determine the suitability and reliability of
vital system and to identify any failures that may lead to a loss of position, loss of power generation or a loss of main propulsion while the vessel is operating in DP mode. After the conversion works a FMEA proving trial shall be carried out on
board in order to verify the theoretical analysis. A final report shall be issued and critical findings shall be properly corrected. 
 770
Miscellaneous 
 CCTV system 

CCTV - Close Circuit Color Television Monitoring System One full matrix switched system with PTZ (pan, tilt and zoon) cameras shall be installed.

 Recommended minimum system: 

Camera: 
 1- for Coupling Valve,

 1- for BLS Winch, 
 1- at fwd Mast, 
 1- at each Thruster room, 

2- at amidships mast — manifolds supervision, 
 1- at Main Deck aft and 2 for Engine Room. 
 Monitors and Control Panel at Bridge
— (3 monitors and 1 Control Panel), 
 Engine Room (2 monitors and 1 Control Panel) and 

Cargo Control Room (1 monitor and 1 Control Panel) 
 Location of the cameras shall be discussed according to the project and vessels particulars. 

Local area network 
 LAN cables (CAT.5)
and wall sockets for nine (9) locations: builder’s scope 
 All hardware (PCs, hub and server): buyer’s scope 

TELEMETRY 
 TELEMETRY shall be provided
by the Buyer. Details of the system will be supplied in due time. 
 HYDRAULIC OIL FILTERS 

Hydraulic power systems shall have dedicated oil filter CJC type or equivalent per system. The following systems, if fitted, must have their own CJC
filter: 
 M/E CPP 
 Thrusters CPP 
 BLS winch 

  
 Page 34 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 UNINTERRUPTIBLE POWER SUPPLIES AND REDUNDANT POWER SUPPLIES 
 UPSs shall be provided for DP
System equipments, sensors and controllers. At least two UPSs shall be used to provide full redundancy for DP System equipments, sensors and PRS. Control System of new engines and thrusters shall have a redundant power supply. Signal splitter units
shall have power supply from same source that feeds the signal generator equipment. 

  
 Page 35 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 800 Electric System 
 Applied voltage: AC440V, AC220V, 60Hz and/or DC 24V 

Electric cable: the cable throughout vessel shall be compliance with IEC60332-1 (flame retardant) 

Engine room: 
 Ethylene propylene rubber
insulated PVC sheathed and steel and/or copper wire braided 
 Weather deck: 
 E.P rubber insulated PVC sheathed and steel and/or copper wire braided with PVC covering 

Accommodation: 
 Ethylene propylene rubber
insulated PVC sheathed 
 810 Electric Source 
 The generators shall serve under various conditions as follows: 
  

							
	 Normal see going:
	 	lx D/G	 		 	
	 Maneuvering with 1-bow thruster
	 	2x D/G	 		 	
	 Cargo loading in DP mode
	 	4x D/G with open bus-tie	 		 	
	 Cargo discharging
	 	3x D/G	 		 	
	 Rest in port
	 	lx D/G or lx E/G	 		 	

 Transformers: 
  

	2-	1500KVA 6600V/445V three phase for 440V general service 

  

	2-	160KVA 440V/225V three phase for 220V general service 

  

	2-	60KVA 440V/225V three phase for emergency 

  

	3-	5KVA 440V/225V single phase for ship’s forward service 

 Storage battery 
 1-220AH, DC24V maintenance free sealed lead-acid type for general use

 1-maintenance free sealed lead-acid type for radio plant 
 Each battery set shall have separate battery charger 

  
 Page 36 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 820 Switchboard 
 6600V main switchboard 

Four (4) diesel generator panels, one (1) bus tie panel, two (2) transformer feeders, four (4) thruster feeder/starters (both feeder
for stern thruster), three (3) cargo pump feeder/starters 
 440V switchboard 
 one (1) bus tie panel, two (2) 440V feeder panels, two (2) 220V feeder panels and two (2) group starter panels (fixed type) 
 Emergency switchboard 
 one (1) emergency generator panel, one (1) 440V emergency feeder
panel, one (1) 220V emergency feeder panel, one (1) group starter panels (fixed type) and shore connection facility (AC440V, 60Hz, 3Ph, 500A) 
  

			
	 Distribution boards
	  	to be provided in accordance with detail design
	 Test panel
	  	not to be provided

 The following functions are required on the Power Management System (to be integrated in Automation System): 

load dependent start/stop 
 start blocking of heavy consumers 
 blackout recovery 

load sharing with options: symmetric/asymmetric load sharing, 
 fixed load and manual load sharing 
 power limitation / thruster pitch reduction

 load shedding 
 mimic graphics - showing power consumption of thrusters, load of gensets, etc., to provide a quick view of status and safety margins during DP operations. 

  
 Page 37 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 830 Electric Motor and Starter 
 Motor 

High voltage motors shall be supplied in accordance with the manufacturer’s standard and IEC. Squirrel cage induction type and insulation class B or
F. 
  

					
	Motors in E/R floor deck	  		  	
	 and below
	  	totally enclosed type (IP44)	  	
	 Motors in E/R others
	  	drip proof (IP23)	  	
	 Accommodation and other space
	  	drip proof (IP23)	  	
	 Exposed to weather
	  	water proof type (IP56)	  	

 Motors installed on weather deck, steering gear motor, emergency fire pump motor, hydraulic Oil pump motor for deck
machinery/thrusters, ballast pump motors and high voltage motors shall be provided with space heater. 
 Starter 

Over current protection by thermal two-element type over current relay shall be applied. Ammeter shall be provided for motors with capacity 15kw and
above. 
 Running meters for the duplicated motors. 
 840 Lighting System 
 The lighting shall be fed from the 220V, 60Hz, 1Ph, normal &
emergency supply system. 
  

					
			
	 Machinery space
	  	halogen lamp, fluorescent lamp, incandescent lamp	  	
			
	 Accommodation
	  	fluorescent lamp, incandescent lamp	  	
			
	 Space exposed to weather
	  	high pressure sodium flood lamp, incandescent lamp	  	
			
	 3kw Suez Canal search light
	  	buyer’s supply	  	
			
	 2kw search light
	  	buyer’s supply. One search light shall be installed at bow (fwd mast), with remote control on wheelhouse. Minimum capacities: 2,000W, 250 meters range	  	

 Navigation & signal lights to be connected to a panel with control switches and indication lamps graphically
arranged, audible and visible signal alarm, and the panel to be installed in bridge control console. 
 Lighting on wheelhouse shall be
compliance with the requirements for DP and Cargo Operation. 

  
 Page 38 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 850 Navigation Equipment 
 1-magnetic compass (transmitting type) 

1-Auto pilot with a course recorder and 3 gyro compass with five (5) gyro repeater 
 1-rudder angle indicator (4-indicators) 
 1-echo sounder with one (1) transducer, 1-digital
depth indicator 
 1-doppler speed log (2-axis type) with two (2) remote indicators 
 2-radar 
 S-band 17” CRT with ARPA 

X-band, 17” CRT with ARPA 

1-integrated navigation system 

1 set, navigation information display 
 2 sets, ECDIS (21”) 
 2-anemometer and anemoscope (a part of DP system) 

2-DGPS navigator 
 1-automtic identification
system 
 1-voyage data recorder 

860 Radio Equipment 
 Radio equipment to
comply with the GMDSS requirement for A3.area 
 1-radio station (250W) 
 MF/HF transceiver with DSC control unit 
 DSC watch keeping receiver 

2-VHF radio telephone with one (1) DSC watch receiver 
 1-INMARSAT B 
 1-INMARSAT C 
 1-satellite E.P.I.R.B 
 1-navtex receiver 
 1-weather facsimile 
 3-Portable VHF transceiver 

2-Radar transponder 
 8-portable UHF transceiver
(walkie-talkie) 
 1-telemetry system for shuttle tanker 
 External communication equipment shall comply with GMDSS area 3 requirement. 

  
 Page 39 of 40

					
	

	 	 Outline Specification
 105,000 DWT Shuttle Tanker
	 	 T0184-000-01
 Rev. 1 (2007-10-18)

  

 
  
 870 Communication Equipment 
 1-auto telephone (56 lines) 

1-sound powered telephone (9 stations) 
 1-public
address (dual 400w amp.) & talk-back system (4 stations) 
 1-whistle (each one air horn and electric horn) 

1-electric clock system (13 slave clocks) 

1-ship security alert system 
 880
Entertainment Equipment 
 1-broadcast & television receiving communal aerial system 

TV SET, Hi-Fi stereo sets etc. recreation equipment no to be supplied by the builder. 
 890 Instrumentation 
 The instrumentation used on power and distribution panels, the main
circuit breaks and protective devices shall have valid certificates of calibration. If these certificates are not available, or if they are out of date, calibration to be performed (preferably during conversion time) and new certificates to be
issued by a company recognized by a major class society. The following instruments must have calibration certificates: 

Instruments of Main and Emergency Switchboard Voltmeters, Ammeters, Power meters, etc. 

Main circuit breaks (generators, bus ties, thrusters and heavy consumers) Overhaul revision and trip levels verified. 

Protective devices of M/E, D/Gs and most important equipment (thermostats, pressure switches, sensors, etc.) 

  
 Page 40 of 40

					
	

	 	 MAKER LIST
 T0184-000-04 Rev. 1
	 	 Page
 1

  
  

 
  

													
	 ORIGINAL
  

Note on Status:
  

A      Submitted for Owner Review.

B      Owner’s comments incorporated.

C      Submitted for Class Society Review.

D      Class Society’s comments incorporated.

E       Issued for Construction.

F       As-built Drawings.

	 						 
	 	  		  		  		  		  		  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	 	 	 	 	 
	25-Oct-07	  	1	  	Revised as per Owner Comments.	  	F. B. Liu 	  	S. Y. Wang 	  	W. J. Zhu
	6-Oct-07	  	0	  	Issued for review.	  	F. B. Liu 	  	S. Y. Wang 	  	W. J. Zhu
	Date	  	Rev. No.	  	Description	  	Designed 	  	Checked 	  	Approved
	STATUS	  	    A B C D E F
	 	 	 	 
	BUILDER	  	COSCO SHIPYARD GROUP CO. LTD	  	HULL NO.	  	TBA
	  	  	CLASS	  	DNV
	OWNER	  	

	  	Knutsen OAS Shipping AS

Smedasundet 40, N-5529 Haugesund, Norway
 Tel +47 52 70 40 00 Fax +47 52 70 40 40 Website: www.knutsenoas.com

	 	 
	PROJECT	  	105,000DWT Afrmax DP Shuttle Tanker
	MAKER
LIST	  	DWG. NO.	  	T0184-000-04
	  	SFI NO.	  	N/A
	  	SCALE	  	SHEET	  	DATE
	  	N/A	  	1 of 12	  	25-Oct-07
	 

	  	COSCO SHIPYARD GROUP CO. LTD
	  	No. 37 Dongbei Road, E.T.D.Z District, Dalian, China	  	Email: offshore@cosco-shipyard.com
	  	Tel: +86 411 3922 9421 Fax: +86 411 3922 9420	  	Website: www.cosco-shipyard.com
	 
	This drawing or document is
the intellectual property of COSCO shipyard group Co., Ltd and may not be reproduced, sold or use in whole or in parts for any propurse without the written approval of COSCO shipyard group Co. Ltd.

					
	

	 	 MAKER LIST
 T0184-000-04 Rev. 1
	 	 Page
 2

  
  

 

 1. MATERIAL PROTECTION & CARGO HANDLING & OUTFITTING 

 

							
	No.	  	ITEM	  	MANUFACTURER	    	REMARKS
	 1
	  	PAINT	  	INTERNATIONAL PAINT	    	China
	  	  	HEMPEL	    	Ditto
	  	  	SIGMA	    	Ditto
	  	  	JOTUN	    	Ditto
	 2
	  	ICCP	  	ACG	    	Italy
	  	  	CATHELCO	    	UK
	  	  	KC LTD	    	Korea
	  	  	WILSON WALTON	    	UK
	 3
	  	CARGO OIL & BALLAST PUMP	  	HAMWORTHY KSE	    	Singapore
	  	  	SHINKO	    	Japan
	 4
	  	REMOTE CONTROL VALVES FOR CARGO & BALLAST SYSTEM	  	DANFOSS	    	 
	  	  	PLEIGER	    	Germany
	  	  	NAKAKITA	    	Japan
	  	  	SCANA HYDRAULIC	    	Norway
	 5
	  	INERT GAS PLANT	  	HAMWORTHY KSE	    	Norway
	  	  	AIR PRODUCT	    	Norway
	  	  	AALBORG /SMIT	    	Denmark
	 6
	  	ODMS	  	SEIL SERES	    	Korea
	  	  	JOWA	    	Sweden
	  	  	VAFKO	    	Korea
	 7
	  	P/V VALVE	  	TANK TECHEIL SERES	    	Korea
	  	  	SEWON	    	Korea
	  	  	PRESS-VAC	    	Denmark
	 8
	  	TANK CLEAN MACHINE	  	CONSILIUM TOFTEJORG	    	Sweden
	  	  	POLAR MARINE	    	Norway
	  	  	ALVA LAVAL	    	Sweden
	  	  	SCANJET	    	Sweden
	 9
	  	BOW LOADING SYSTEM	  	PUSNES	    	Norway
	  	  	APL	    	Norway
	 10
	  	GRE PIPE	  	AMERON	    	Singapore
	  	  	EDO (FIBERBOND)	    	U.S.A
	 11
	  	HAND DIPPING DEVICE	  	MMC ASIA	    	Japan
	  	  	TANK SYSTEM	    	Switzerland
	  	  	TANK TECH	    	Korea
	 12
	  	STEERING GEAR	  	PORSGRUND	    	Norway
	  	  	HATLAPA	    	China
	  	  	ROLLS ROYCE / ULSTEIN	    	Norway
	  	  	KAWASAKI WUHAN	    	China

					
	

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	No.	  	ITEM	  	MANUFACTURER	    	REMARKS
	 13
	  	THRUSTER	  	BRUNVOLL	    	Norway
	  	  	ROLLS ROYCE / ULSTEIN	    	Norway
	  	  	LIPS	    	Holland
	  	  	KAWASAKI	    	Japan
	 14
	  	 WINDLASS AND
 MOORING WINCH
	  	HATLAPA	    	China
	  	  	ROLLS- ROYCE	    	Norway/China
	  	  	IHI	    	China
	  	  	KAWASAKI WUHAN	    	China
	  	  	PUSNES	    	Norway
	 15
	  	ANCHOR	  	WUZHOU MARINE CASTING PLANT	    	China
	  	  	ZHENJIANG ZHENGMAO GROUP	    	China
	  	  	RUGAO HAIYANG	    	China
	  	  	JIANGSU YUANYANG	    	China
	 16
	  	CHAIN CABLE	  	CHINA	    	 
	 17
	  	CHAIN CABLE STOPPER	  	CHINA	    	 
	 18
	  	EMERGENCY TOWING	  	TANK TECH	    	USA
	 19
	  	ACCOMMODATION LADDER & WINCH	  	ZHENGJIANG LISHENG	    	China
	  	  	JIANGYAN MARINE EQUIPMENT PLANT	    	China
	  	  	HUANGSHAN XINGHAI MARINE EQUIPMENT PLANT	    	China
	  	  	JIANGSU VICTOR MARINE AUX. C/L	    	China
	 20
	  	LIFEBOAT & RESCUE BOAT	  	JIANGYIN NORSAFE	    	China
	  	  	HARDING	    	China
	  	  	JIANGYIN XINJIANG	    	China
	  	  	HATECKE	    	Germany
	 21
	  	LIFEBOAT & RESCUE DAVIT	  	BEIHAI S/Y (CHINA)	    	China
	  	  	JIANGSU VICTOR MARINE AUX. C/L (CHINA)	    	China
	  	  	JIANGYIN NORSAFE	    	China
	  	  	HADING	    	China
	  	  	HATECKE	    	Germany

					
	

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	No.	  	ITEM	  	MANUFACTURER	    	REMARKS
	 22
	  	LIFERAFT	  	HYGRAPHA	    	Germany
	  	  	DSB	    	Germany
	  	  	VIKING	    	Denmark
	  	  	RFD	    	U.K
	  	  	CHINA-MADE	    	 
	 23
	  	PROVISION CRANE	  	JIANGYIN HUADONG	    	China
	  	  	DREGGEN	    	Norway/China
	  	  	TTS	    	China
	 24
	  	CO2 FIRE EXTINGISHING	  	UNITOR	    	Norway
	  	  	NK	    	Korea
	  	  	SEAPLUS	    	Korea
	  	  	TYCO	    	U.K
	 25
	  	FOAM FIRE EXTINGISHING	  	UNITOR	    	Norway
	  	  	NK	    	Korea
	  	  	SEAPLUS	    	Korea
	  	  	TYCO	    	U.K
	 26
	  	SURVIVAL SUITS	  	VIKING	    	Denmark
	  	  	RFD	    	U.K
	 27
	  	FIREMAN’S OUTFIT (LOOSE PARTS)	  	UNITOR	    	Norway
	  	  	NK	    	Korea
	 28
	  	LOOSE LIFESAVING EQUIPMENT	  	COSCO	    	Korea
	  	  	UNITOR	    	Norway
	 29
	  	CARGO CONTROL SYSTEM	  	BJORGE STEINCO	    	Norway
	  	  	LYNGSO MARINE	    	Denmark
	  	  	KONGSBERG	    	Norway
	  	  	MOLAND	    	 
	 30
	  	LOADING COMPUTER	  	TECHMARINE	    	Korea
	  	  	NAPA	    	Finland
	  	  	CONSULTAS	    	Norway
	  	  	MARINE ALIGNMENT	    	Denmark

					
	

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 2. ACCOMMODATION 

 

							
	NO.	  	ITEM	  	MANUFACTURER	    	REMARKS
	 1
	  	INSULATION	  	CHINA	    	 
	 2
	  	DECK COVERING	  	CHINA	    	 
	 3
	  	PARTITION WALL, CEILING	  	CHAO YANG MACHINERY PLANT	    	China
	  	  	HUANAN BUILDING MATERIALS CO., LTD	    	China
	  	  	JIANG SU HAI LU (CHINA)	    	China
	 4
	  	LAVATORY UNIT	  	CHAO YANG MACHINERY PLANT	    	China
	  	  	SHANGHAI HUI HE	    	China
	  	  	NORAC-SUZHOU	    	China
	 5
	  	GRP DOOR	  	LIBRA	    	Norway/China
	 6
	  	FURNITURE	  	CHINA	    	 
	 7
	  	GALLEY AND LAUNDRY	  	ELECTROLUX	    	Sweden
	  	  	AROX	    	Singapore
	  	  	SAMJOO	    	Korea
	  	  	METOS	    	Finland
	  	  	BEHA HEDO	    	Norway
	 8
	  	TOILET UNIT	  	BULL	    	Korea
	  	  	WARTSILA	    	Korea
	 9
	  	VACUUM TOILET SYSTEM	  	JETS	    	Norway
	  	  	EVAC	    	Finland
	 10
	  	AIR CONDITIONING PLANT, PROVISION REFRIGERATING, PLANT	  	HEINEN & HOPMAN	    	Holland
	  	  	SABROE	    	Denmark
	  	  	NAMIREI/DAIKIN	    	Japan
	  	  	VIKING	    	Singapore
	  	  	HI-PRESS	    	 
	 11
	  	WINDOW WIPER	  	JUNG-A	    	Korea
	  	  	WYNE	    	U.K

					
	

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 3. MACHINERY PART 

 

							
	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 1
	  	MAIN ENGINE	  	MAN B&W	    	China
	  	  	WARTSILA	    	Finland
	  	  	MAN B&W	    	Japan
	 2
	  	PROPELLER	  	ROLLS-ROYCE	    	Sweden
	  	  	LIPS	    	Holland
	  	  	KAWASAKI	    	Japan
	 3
	  	AUXILIARY BOILER	  	AALBORG	    	China
	  	  	SAACKE	    	China
	  	  	MITSUBISHI	    	Japan
	 4
	  	EXHAUST GAS ECONONIZER	  	AALBORG	    	China
	  	  	SAACKE	    	China
	  	  	MITSUBISHI	    	Japan
	  	  	KANGRIM	    	Korea
	 5
	  	AUXILIARY ENGINE	  	WARTSILA	    	Korea
	  	  	DAIHATSHU	    	China
	  	  	MAN B&W HOLEBY	    	Denmark
	  	  	Mak	    	German
	 6
	  	EMERGENCY DIESEL GENERATING SET	  	NORHAVN	    	Denmark
	  	  	CUMMINS	    	China
	  	  	LINDEBERG +ANLAGEN	    	Germany
	  	  	CARTEPILLAR	    	USA
	 7
	  	PURIFIER	  	ALFA-LAVAL	    	Sweden
	  	  	WESTFALIA	    	Germany
	 8
	  	F.O SUPPLY MODULER UNIT	  	KUPER+WOLF	    	Germany
	  	  	AURAMARINE ASIA LTD (CHINA)	    	China
	  	  	ALFA LAVAL	    	Sweden
	 9
	  	CENTRIFUGAL PUMP	  	ALLWEILER	    	Germany
	  	  	SHINKO	    	Japan
	  	  	HAMWORTHY	    	Norway
	  	GEAR PUMP	  	ALLWEILER	    	Germany
	  	  	HAMWORTHY	    	Norway
	  	EMERGENCY FIRE PUMP	  	SHINKO	    	Japan
	  	  	ALLWEILER	    	Germany
	  	  	HAMWORTHY	    	Norway
	 10
	  	AIR COMPRESSOR	  	HATLAPA	    	Germany
	  	  	NK	    	Germany
	  	  	SPERRE	    	Norway

					
	

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	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 11 
	  	F.W. GENERATOR	  	SERCK	    	Germany
	  	  	ALFA-LAVAL	    	Sweden
	  	  	JOWA	    	Sweden
	  	  	SONDEX	    	Denmark
	  	  	APV	    	Denmark
	 12 
	  	PLATE COOLER	  	GEA	    	Germany
	  	  	APV	    	Denmark
	  	  	DONGHWA	    	Korea
	  	  	SONDEX	    	Denmark
	  	  	DHP	    	Korea
	  	  	LHE	    	Korea
	  	  	ALFA-LAVAL	    	Sweden
	 13 
	  	TUBULAR COOLER / CONDENSER	  	DONG HEA	    	Korea
	 14 
	  	OIL HEATER	  	DONG HEA	    	Korea
	 15 
	  	INCINERATOR	  	TEAMTEC	    	Norway/China
	  	  	KANGRIM	    	Korea
	  	  	ATLAS	    	Germany
	 16 
	  	OILY WATER SEPARATOR	  	MARINFLOC	    	Sweden
	  	  	JOWA	    	Sweden
	  	  	B+V	    	Germany
	  	  	RWO	    	Germany
	  	  	HAMWORTHY	    	Norway
	 17 
	  	MARINE GROWTH PREVENTION SYSTEM	  	ACG	    	Italy
	  	  	CATHELCO	    	UK
	  	  	CWC	    	Holland
	  	  	WILSON WALTON	    	UK
	 18 
	  	SHELL-TUBE TYPE HEAT EXCHENGER	  	NANTONG MACHINERY WORKS	    	China
	  	  	NANTONG SHENTONG MACHINICAL FACTORY	    	China
	  	  	NANTONG CSEMC MACHINERY MANUFACTURE	    	China
	 19 
	  	STERNTUBE SEAL	  	B+V	    	Germany
	  	  	JMT	    	Japan
	  	  	KOBELCO	    	Japan
	  	  	CEDERVAL	    	Sweden
	  	  	IHC	    	Holland

					
	

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	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 20 
	  	FANS	  	HENGYUAN (CHINA)	    	China
	  	  	QINGDAO MARINE EQUIPMENT CO. (CHINA)	    	China
	  	  	JIANGSU ZHAOSHENG (CHINA)	    	China
	 21 
	  	SEWAGE TREATMENT PLANT	  	HAMWORTHY	    	Sweden
	  	  	JONGHAP	    	Korea
	  	  	CHANGWON	    	Korea
	  	  	TAIKO	    	China
	  	  	JOWA	    	Sweden
	 22 
	  	FIXED WATER MIST FIRE FIGHTING SYSTEM	  	YORK REFRIERATION	    	 
	  	  	UNITOR	    	Norway
	  	  	TYCO	    	Japan
	  	  	CHINA-MADE	    	 
	 23 
	  	TEMPERATURE REGULATING, VALVE ONLY THREE WAY	  	AMOT	    	U.K
	  	  	ODIN	    	Denmark
	  	  	NAKAKITA	    	Japan
	  	  	FISCHER(USA)	    	USA
	 24 
	  	ENGINE ROOM CRANE	  	CHINA	    	 
	 25 
	  	COMPRESSED AIR DRYER	  	BOGE	    	Germany
	  	  	SABROE	    	Germany
	  	  	NIPPON CONTROL	    	Japan
	  	  	BEKO	    	Germany
	 26 
	  	AUTO. CLEANING FILTER	  	ALFA – LAVAL	    	Sweden
	  	  	B&K	    	Germany/China
	  	  	AMEROID	    	Japan
	  	  	KUP-WOLF	    	Germany
	 27 
	  	OTHER FILTER	  	CHINA	    	 
	 28 
	  	AIR RESERVOIR	  	SHAZHOU MARINE BOILER FACTORY	    	China
	  	  	JIUJIANG MARINE MACHINERY PLANT	    	China
	  	  	TAIZHOU YONG TAI	    	China
	 29 
	  	F.W. HYDROPHORE TANK AND CALORIFIER	  	NANTONG MARINE MACHINERY PLANT	    	China
	  	  	TAIXIN MARINE MACHINERY PLANT	    	China
	  	  	JIANGSU NANJI	    	China

					
	

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	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 30 
	  	POTABLE WATER STERILIZER	  	JOWA	    	Sweden
	  	  	SERCK	    	Germany
	  	  	RENKEN	    	Germany
	  	  	NIPPON CONTROL	    	Japan
	  	  	SAFETEC	    	Singapore

					
	

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 4. ELECTRIC PART 

 

							
	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 1
	  	DP SYSTEM	  	KONGSBERG	    	Norway
	  	  	ALSTOM	    	UK
	 2
	  	ICMS	  	LYNGSOE MARINE	    	Norway
	  	  	KONGSBERG	    	Norway
	 3
	  	CARGO TANK LEVEL GAUGE SYSTEM (RADAR BEAM TYPE)	  	AUXITROL	    	France
	  	  	SAAB	    	Sweden
	  	  	AUTRONICA	    	Norway
	 4
	  	BALLAST & FO TANK LEVEL GAUGE SYSTEM (AIR PURGE TYPE)	  	HANLA	    	Korea
	  	  	AUXITROL	    	France
	 5
	  	INDEPENDENT HIGH LEVEL ALARM SYSTEM	  	HANLA	    	Korea
	  	  	AUXITROL	    	France
	 6
	  	GAS SAMPLING & DETECTION SYSTEM	  	HANLA	    	Korea
	  	  	CONSILIUM	    	Sweden
	  	  	RIKEN	    	Japan
	  	  	KYOMO	    	Japan
	 7
	  	VAPOUR RECOVERY SYSTEM	  	HANLA	    	Korea
	 8
	  	CCTV	  	HERNIS	    	Norway
	  	  	OCEANOR	    	Norway
	  	  	CMR	    	Korea
	 9
	  	FIRE DETECTING SYSTEM	  	UNITOR	    	Norway
	  	  	CONSILIUM	    	Sweden
	  	  	THORN	    	U.K
	  	  	OKI-NHE	    	Japan
	  	  	APOLLO	    	U.K
	  	  	AUTRONICA	    	Norway
	 10
	  	ELECTRIC GENERATOR (HIGH/LOW VOLTAGE)	  	ABB	    	Sweden
	  	  	SIEMENS	    	Germany
	  	  	WEG	    	Brazil/China
	 11
	  	ELECTRIC MOTOR (HIGH/LOW VOLTAGE)	  	ABB	    	Sweden
	  	  	SIEMENS	    	Germany
	  	  	WEG	    	Brazil/China
	 12
	  	SWITCHBOARD / STARTER / DISTRIBUTION BOARD (LOW VOLTAGE)	  	SCHNEIDER	    	China
	  	  	ABB	    	China
	  	  	WEG	    	Brazil/China
	  	  	HDW	    	China

					
	

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	No. 	  	ITEM	  	MANUFACTURER	    	REMARKS
	 13 
	  	SWITCHBOARD / STARTER (HIGH VOLTAGE)	  	TERASAKI	    	Japan
	  	  	IMTECH	    	Holland
	  	  	ABB	    	Sweden
	  	  	WEG	    	Brazil/China
	  	  	HDW	    	Germany
	 14 
	  	IBS / NAVIGATION EQUIPMENT	  	KONGSBERG NORCONTROL	    	Norway
	  	  	JRC	    	Japan
	  	  	FURUNO	    	Japan
	  	  	TOKIMEC INC.	    	Japan
	 15 
	  	CYRO COMPASS / AUTO PILOT / MAGNETIC COMPASS	  	C-PLATH	    	Germany
	  	  	IBS MARKER	    	 
	 16 
	  	RADIO PLANT (GMDSS )	  	FURUNO	    	Japan
	  	  	TOKIMEC INC.	    	Japan
	  	  	JRC	    	Japan
	  	  	IBS MARKER	    	 
	 17 
	  	AUTOMATIC TELEPHONE SYSTEM / SOUND POWER TELEPHONE/PA	  	GITIESSE	    	Italy
	  	  	VINGTOR	    	Norway
	  	  	PHONTECH	    	Norway
	  	  	OKI-NHE	    	Japan
	  	  	KC	    	Korea
	  	  	MRC	    	Korea
	 18 
	  	SPEED LOG	  	C.PLATH	    	Germany
	  	  	YOKOGAWA	    	Japan
	  	  	FURUNO	    	Japan
	 19 
	  	SSAS	  	FURUNO	    	Japan
	  	  	TOKIMEC INC.	    	Japan
	  	  	JRC	    	Japan
	 20 
	  	VDR	  	FURUNO	    	Japan
	  	  	TOKIMEC INC.	    	Japan
	  	  	CONSILIUM	    	Sweden
	  	  	HAILAND	    	China
	  	  	JRC	    	Japan
	 21 
	  	AIS	  	FURUNO	    	Japan
	  	  	TOKIMEC INC.	    	Japan
	  	  	JRC	    	Japan
	 22 
	  	AIR HORN (TYFON)	  	ZOLLER	    	Germany
	  	  	KOCKUMS	    	Sweden
	  	  	SARACOM	    	Korea
	  	  	IBUKI	    	Japan

					
	

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	No.	 	ITEM	  	MANUFACTURER	    	REMARKS
	 23
	 	NAVIGATION AND SIGNAL LIGHTS	  	AQUA	    	Germany
	 	  	PERERS & BEY	    	Germany
	 	  	SANSHIN	    	Japan
	 	  	GLAMOX	    	Norway
	 	  	KUKDONG	    	Korea
	 	  	HAI XING	    	China
	 24
	 	LIGHTING FIXTURES	  	HAIXING	    	China
	 	  	GLAMOX	    	Norway/China
	 	  	HULE	    	China
	 	  	TIANCHANG	    	China
	 	  	DALIAN	    	China
	 25
	 	STORAGE BATTERY & CHARGING & DISTRIBUTION PANEL	  	SWITCHBOARD MAKER	    	 
	 26
	 	CABLE	  	YANG ZHOU YUANYANG CABLE FACTORY	    	China
	 	  	CHANGZHOU MARINE CABLE FACTORY	    	China
	 	  	SHANGSHANG	    	China
	 27
	 	MONITORING AND ALARM EQUIPMENT	  	LYNGSOE MARINE	    	Denmark
	 	  	KONGSBERG	    	Norway
	 28
	 	MAIN ENGINE CONTROL SYSTEM	  	LYNGSOE MARINE	    	Denmark
	 	  	KONGSBERG	    	Norway
	 29
	 	CONSOLE	  	MADE IN CHINA	    	 

			
		  	

  
 Knutsen
Shuttle Tankers XII KS 
 and 

Knutsen OAS Shipping AS 
 and

 Fronape International Company 
 and 
 Petrobras Transporte SA—Transpetro 

and 
 Fronape International Company B.V.

 Novation Agreement 
 in
respect of 
 the Bareboat Charter of FORTALEZA KNUTSEN and the Management Agreement of 
 FORTALEZA KNUTSEN 
  

 

 Agreement 
 Dated: June, 27th, 2012. 
 Between: 

 

	(1)	KNUTSEN SHUTTLE TANKERS XII KS a company incorporated in Norway, and having its registered place of business at Smedasundet 40, 5519 Haugesund, Norway (the
Owner); 

  

	(2)	KNUTSEN OAS SHIPPING AS a company incorporated in Norway, and having its registered place of business at Smedasundet 40, 5519 Haugesund, Norway (the
Manager); 

  

	(3)	FRONAPE INTERNATIONAL COMPANY a company incorporated in the Cayman Islands whose registered office is at P.O. Box 714, Georgetown, Grand Cayman, Cayman Islands
(the Old Charterer); 

  

	(4)	PETROBRAS TRANSPORTE S.A.—TRANSPETRO a company incorporated in Brazil whose registered office is at Av Presidente Vargas, 328, 20091-060, Rio de Janeiro,
RJ, Brazil (Transpetro); and 

  

	(5)	FRONAPE INTERNATIONAL COMPANY B.V. a company incorporated in the Netherlands, whose registered office is at Prins Bernhardplein 200, 1097jbm, Amsterdam, The
Netherlands (the New Charterer). 

 WHEREAS: 

 

	(A)	This Agreement is supplemental to: 

  

	 	(i)	a bareboat charter in respect of the Vessel dated 14 November 2007 and made between the Owner (as registered owner of the Vessel), the Old Charterer and Transpetro
(the Bareboat Charter), a copy of which is annexed to this Agreement for reference; and 

  

	 	(ii)	a management agreement in respect of the Vessel dated 8 December 2010 and made between the Old Charterer (as disponent owner of the Vessel) and the Manager (the
Management Agreement), a copy of which is annexed to this Agreement for reference. 

  

	(B)	Pursuant to a corporate restructuring the Old Charterer, with the consent of the Owner, the Manager and Transpetro, wishes to novate the Bareboat Charter and the
Management Agreement to the New Charterer. 

  
 2 

1110319/001 

24376371.2\LONLIVE\14418462.l1012123/001 

23737723.1 

	1	Definitions 

 Words and
expressions defined in the Bareboat Charter and or, as the case may be, the Management Agreement shall, unless the context requires otherwise, have the same meaning when used in this Agreement and in addition: 

 

	1.1	Effective Date shall have the meaning given to it in Clause 2; 

  

	1.2	Mortgagee means DNB Bank ASA (formerly known as DnB NOR Bank ASA) acting in its capacity as mortgagee of the Vessel; 

 

	1.3	Novation Documents means the Bareboat Charter and the Management Agreement; 

 

	1.4	Quiet Enjoyment Letter or QE Letter means the letter agreement to be made between the Mortgagee, Transpetro and the New Charterer regulating their
respective rights regarding use and possession of the Vessel in form and substance equivalent to the quiet enjoyment letter dated 28 February 2011 in respect of the Vessel from the Mortgagee to Transpetro and the Old Charterer; and

  

	1.5	Vessel means the motor tanker FORTALEZA KNUTSEN as more particularly described in the Bareboat Charter. 

 

	1.6	References in this Agreement to “the Bareboat Charter” and “the Management Agreement” shall, from the Effective Date and unless the context
otherwise requires, be references to the Bareboat Charter and the Management Agreement as novated and amended by this Agreement and words shall be construed accordingly. 

 

	1.7	A reference to a Clause is to a Clause of this Agreement unless the context requires otherwise. 

 

	1.8	Clause and paragraph headings shall not affect the interpretation of this Agreement. 

 

	2	Effective Date 

  

	2.1	The Effective Date shall be the date of this Agreement. 

  

	3	Novation 

  

	3.1	As from the Effective Date: 

  

	3.1.1	 the Owner and the Old Charterer hereby mutually release each other from their obligations under the Bareboat Charter; and 

 

	3.1.2 	the Manager and the Old Charterer hereby mutually release each other from their obligations under the Management Agreement. 

  
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	3.2	As from the Effective Date the New Charterer undertakes to perform: 

  

	3.2.1	the Bareboat Charter and be bound by its terms in every way as if the New Charterer had originally entered into the Bareboat Charter with the Owner and Transpetro
instead of the Old Charterer; and 

  

	3.2.2	the Management Agreement and be bound by its terms in every way as if the New Charterer had originally entered into the Management Agreement with the Manager instead of
the Old Charterer. 

  

	3.3	From the Effective Date: 

  

	3.3.1	the Owner releases and discharges the Old Charterer from all claims and demands whatsoever in respect of the Bareboat Charter and accepts the liability of the New
Charterer under the Bareboat Charter, and hereby grants the New Charterer the same rights under the Bareboat Charter as if the New Charterer had originally entered into the Bareboat Charter instead of the Old Charterer; and 

 

	3.3.2	the Manager releases and discharges the Old Charterer from all claims and demands whatsoever in respect of the Management Agreement and accepts the liability of the New
Charterer under the Management Agreement, and hereby grants the New Charterer the same rights under the Management Agreement as if the New Charterer had originally entered into the Management Agreement instead of the Old Charterer.

  

	3.4	Each of the Owner, the Manager and the New Charterer will have the right to enforce the relevant Novation Document and pursue any claims and demands under that Novation
Document against the other with respect to matters arising before, on or after the Effective Date as if the New Charterer had originally entered into that Novation Document instead of the Old Charterer. 

 

	3.5	Transpetro hereby consents to the novation of the Bareboat Charter and agrees to continue to be bound by the terms of the Bareboat Charter (as novated hereby).

  

	3.6	From the Effective Date, subject to the Mortgagee (i) indicating its consent and acknowledgment by counter-signing this Agreement and (ii) signing the QE
Letter, Transpetro and the New Charterer shall agree to be bound by the terms of the QE Letter and shall promptly execute in favour of the Mortgagee such acknowledgements and undertakings in a form acceptable to (or reasonably required by) the
Mortgagee pursuant to the QE Letter. 

  

	4	Amendments to the Novation Documents 

 With effect on and from the Effective Date, the Novation Documents shall be amended so that references to the Old Charterer are deemed to be references to the New Charterer. 

  
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	5	Continued force and effect 

  

	5.1	Save as amended by this Agreement, the provisions of the Novation Documents shall continue in full force and effect. 

 

	5.2	The Bareboat Charter and this Agreement shall be read and construed as one instrument. 

 

	5.3	The Management Agreement and this Agreement shall be read and construed as one instrument. 

 

	6	Notices 

  

	6.1	Any notice or other communication hereunder (a “Communication”) shall be in the English language and be addressed as follows (or as the intended
recipient shall have notified the sender in accordance with this Clause): 

  

	 	(a)	if to Knutsen Shuttle Tankers XII KS : 

 Attn: Trygve Seglem 
 Smedasundet 40 

5529 Haugesund 
 Norway 
 Fax: +47 52 70 40 40 

 

	 	(b)	if to Knutsen OAS Shipping AS: 

 Attn: Trygve Seglem 
 Smedasundet 40 

5529 Haugesund 
 Norway 
 Fax: +47 52 70 40 40 

 

	 	(c)	if to Fronape International Company 

 Attn: Fronape International Company 
 Av Presidente Vargas 328, 5th
Floor 
 20091-060 
 Rio de Janeiro 
 RJ 

Brazil 
 Fax: +55 21 3211 7106 
  

	 	(d)	if to Transpetro: 

Attn: Transpetro/DTM/TM 

Av Presidente Vargas 328, 5th Floor 
 20091-060 
 Rio de Janeiro 

RJ 
 Brazil 
 Fax: +55 21 3211 7106 

  
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	 	(e)	if to Fronape International Company B.V. 

 Attn: Fronape International Company B.V. 
 Weena, 722. Weena pt.
Toren A 
 3rd Floor 
 Rotterdam 
 The Netherlands 

Fax: +31 10 206 7027 
  

	7	Third party rights 

  

	7.1	Other than the Mortgagee, a person who is not a party to this Agreement has no rights under it and may not enforce a right to, or enjoy the benefit of, any term of this
Agreement under the Contracts (Rights of Third Parties) Act 1999. 

  

	8	Counterparts 

 This
Agreement may be executed and delivered in any number of counterparts, each of which is an original and which together have the same effect as if each party had signed the same document. 

 

	9	Governing Law and jurisdiction 

  

	9.1	This Agreement shall be governed by and construed in accordance with the law of England and Wales. 

 

	9.1.1	Any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the provisions of Part II, clause 26 of
the Bareboat Charter or clause 19 of the Management Agreement (as applicable) (which shall be deemed to be incorporated herein with any necessary adaptation) 

 This document has been entered into by the Parties or their duly authorised representatives on the date set out at the beginning of this document. 

  
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	 Signed by
	 	)	 	
		 	)	 	
	 duly authorised for and on behalf of
	 	)	 	sign here: /s/ TRYGVE SEGLEM
	 KNUTSEN SHUTTLE TANKERS XII KS
	 	)	 	print name: Trygve Seglem

  

					
	 Signed by
	 	)	 	
		 	)	 	
	 duly authorised for and on behalf of
	 	)	 	sign here: /s/ TRYGVE SEGLEM
	 KNUTSEN OAS SHIPPING AS
	 	)	 	print name: Trygve Seglem

  

					
	 Signed by
	 	)	 	
		 	)	 	
	 duly authorised for and on behalf of
	 	)	 	sign here: /s/ EDUARDO DA CUNHA BASTOS
	 FRONAPE INTERNATIONAL COMPANY
	 	)	 	print name: Eduardo Da Cunha Bastos

  

					
	 Signed by
	 	)	 	
		 	)	 	
	 duly authorised for and on behalf of
	 	)	 	sign here: /s/ JOSE SERGIO DE OLIVEIRA MACHADO
	 PETROBRAS TRANSPORTE S.A.
	 	)	 	print name: Jose Sergio De Oliveira Machado

  

					
	 Signed by
	 	)	 	
		 	)	 	
	 duly authorised for and on behalf of
	 	)	 	sign here: /s/ AGENOR CESAR JUNQUEIRA LEITE
	 FRONAPE INTERNATIONAL COMPANY B.V.
	 	)	 	print name: Agenor Cesar Junqueira Leite

  
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 Consent and acknowledgment of Mortgagee 
 The Mortgagee hereby confirms its consent to the novation of the Novation Documents on the terms set out above and agrees to be bound by the terms of the QE Letter. 

 

					
	/s/ HELGE ÅDNE LIEN	 		 	/S/ ANNE BERIT LANGELAND
			
	Helge Ådne Lien, First Vice President	 	 	 	Anne Berit Langeland, Assistant Vice President
	DNB BANK ASA (formerly known as DnB NOR Bank ASA)

 Date: 25/2-12, 2012 

  
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