Document:

EX-10.4

DR PEPPER SNAPPLE GROUP, INC.

EMPLOYEE STOCK PURCHASE PLAN

Section 1

PURPOSE

          The purpose of the Dr Pepper Snapple Group, Inc. Employee Stock Purchase Plan is to provide
Employees of the Company and its Designated Subsidiaries with an opportunity to acquire a
proprietary interest in the Company’s long-term performance and success through the purchase of
shares of Common Stock at a price that may be less than the Fair Market Value of the stock on the
date of purchase from funds accumulated through payroll deductions.

Section 2

BACKGROUND

          The Plan is intended to qualify as an “employee stock purchase plan” under Code Section 423.
The Plan will, accordingly, be construed so as to extend and limit participation in a manner within
the requirements of that Code section. The terms of the Plan as contained in this document will
apply with respect to Purchase Periods beginning on and after the Effective Date.

Section 3

DEFINITIONS

          As used in the Plan, the following terms, when capitalized, have the following meanings:

          “Board” means the Board of Directors of the Company.

          “Business Day” means a day that the New York Stock Exchange, or such other principal
exchange on which the Common Stock is traded, is open for trading.

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

          “Committee” means the committee described in Section 11.

          “Common Stock” means the common stock, par value $.01 per share, of the Company, or any
stock into which that common stock may be converted, reclassified or exchanged.

          “Company” means Dr Pepper Snapple Group, Inc., a Delaware corporation, and any
successor entity.

          “Compensation” means (a) for salaried Employees, the regular base salary or wages, and
commissions, paid by the Company or a Designated Subsidiary for services

 

 

performed by such Employees which are computed on a weekly, biweekly, monthly, annual
or other comparable basis, before any payroll deductions for taxes or any other purposes;
and (b) for hourly Employees, wages paid by the Company or a Designated Subsidiary for
services performed by such Employees which are computed on a biweekly or other comparable
basis, before any payroll deductions for taxes or any other purposes. However, in the case
of both (a) and (b) above, Compensation shall not include overtime, shift premium, bonuses
and other special payments, incentive payments, pension, severance pay, foreign service
premiums or other foreign assignment uplifts or any other extraordinary compensation, nor
Company or Designated Subsidiary contributions to a retirement plan or any other deferred
compensation or employee benefit plan or program of the Company or any Designated
Subsidiary.

          “Contributions” means all amounts contributed by a Participant to the Plan in
accordance with Section 6.

          “Designated Subsidiary” means a Subsidiary that has been designated by the Board or the
Committee as eligible to participate in the Plan as to its eligible Employees.

          “Effective Date” means May 7, 2008.

          “Employee” means any person who performs services as an employee for, and who is
classified as an employee on the payroll records of, the Company or a Designated Subsidiary.

          “Fair Market Value” of a share of Common Stock means, as of a particular date, (i) if
shares of Common Stock are listed on a national securities exchange, the closing sales price
per share of Common Stock on the consolidated transaction reporting system for the principal
national securities exchange on which shares of Common Stock are listed on that date, or, if
there shall have been no such sales reported on that date, on the last preceding date on
which such a sale was so reported, (ii) if the Common Stock is not so listed, but is traded
on an over the counter market, the mean between the closing bid and asked price on that
date, or, if there are no such prices available for such date, on the last preceding date on
which such prices shall be available, as reported by the National Quotation Bureau
Incorporated, or (iii) if shares of Common Stock are not publicly traded, the most recent
value determined by an independent appraiser appointed by the Company for such purpose.

          “Offering Date” means the first Business Day of each Purchase Period.

          “Participant” means a participant in the Plan as described in Section 5.

          “Payroll Deduction Account” means the bookkeeping account established for a Participant
in accordance with Section 6.

          “Plan” means the Dr Pepper Snapple Group, Inc. Employee Stock Purchase Plan, as set
forth herein, and as amended and restated from time to time.

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          “Purchase Date” means the last Business Day of each Purchase Period or such other date
as required by administrative operational requirements.

          “Purchase Period” means a period of twelve months commencing on January 1 of each
calendar year and ending on the following December 31, or such other period as determined by
the Committee; provided that in no event may a Purchase Period exceed 27 months. The
initial Purchase Period following the Effective Date may be a short Purchase Period
beginning on the date selected by the Committee (but no earlier than the date of
effectiveness of the initial registration statement on Form S-8 filed by the Company with
respect to the Plan), and ending on a date selected by the Committee.

          “Purchase Price” means an amount equal to 85% to 100% of the Fair Market Value of a
Share on one of the following dates: (i) the Offering Date, (ii) the Purchase Date or (iii)
the lower of the Offering Date or the Purchase Date, as the Committee in its sole discretion
shall determine and communicate to the Participants.

          “Share” means a share of Common Stock, as adjusted in accordance with Section 13.

          “Subsidiary” means each corporation in an unbroken chain of corporations beginning or
ending with the Company if, on or after the Effective Date, each of the corporations other
than the last corporation in the chain owns stock possessing fifty percent (50%) or more of
the total combined voting power of all classes of stock in one of the other corporations in
the chain.

Section 4

ELIGIBILITY

     (a) Eligible Employees. Any person who is an Employee as of an Offering Date in a given
Purchase Period will be eligible to participate in the Plan for that Purchase Period, subject to
the requirements of Section 5 and the limitations imposed by Code Section 423(b). Notwithstanding
the foregoing, the Committee may, on a prospective basis, (i) exclude from participation in the
Plan any or all Employees whose customary employment is 20 hours per week or less or is not for
more than five months in a calendar year, and (ii) impose an eligibility service requirement of up
to two years of employment. The Committee may also determine that a designated group of highly
compensated employees (within the meaning of Code Section 414(q)) are ineligible to participate in
the Plan.

     (b) Five Percent Shareholders. Notwithstanding any other provision of the Plan, no Employee
will be eligible to participate in the Plan if the Employee (or any other person whose stock would
be attributed to the Employee pursuant to Code Section 424(d)) owns an amount of capital stock of
the Company and/or holds outstanding options to purchase stock which equals or exceeds five percent
(5%) of the total combined voting power or value of all classes of stock of the Company or a
Designated Subsidiary.

3

 

Section 5

PARTICIPATION

          An Employee may elect to become a Participant in the Plan by completing such enrollment
documents as are provided by the Committee or its designee, including where applicable a payroll
deduction authorization form, and submitting them to the Committee or its designee in accordance
with the administrative requirements and any limitations established by the Committee. The
enrollment documents will set forth the amount of the Participant’s Contributions, which may be
established as a percentage of the Participant’s Compensation or a specific dollar amount;
provided, however, in no event shall a Participant’s Contributions exceed an amount of compensation
which would give the Participant the right to purchase a number of shares at an annual rate which
exceeds the accrual limit specified in Code Section 423(b)(8) for a calendar year. Contributions
to the Plan may be also subject to such other limits designated by the Committee, including any
minimum Contribution amount or percentage.

          The Plan is a discretionary plan. Participation by any Employee is purely voluntary.
Participation in the Plan with respect to any Purchase Period shall not entitle any Participant to
participate with respect to any other Purchase Period.

Section 6

CONTRIBUTIONS

     (a) Payroll Deductions. A Participant’s Contributions with respect to a Purchase Period will
begin on the first payroll paid with respect to such Purchase Period and will end on the last
payroll paid on or before the Purchase Date of said Purchase Period, unless the Participant elects
to withdraw from the Plan as provided in Section 9. A Participant’s enrollment documents will not
remain in effect for successive Purchase Periods unless the Committee otherwise provides.

     (b) Payroll Deduction Account. For each payroll for which the Participant has elected to make
Contributions to the Plan by means of payroll deduction or otherwise (as approved by the
Committee), the Committee will credit the amount of each Participant’s Contributions to the
Participant’s Payroll Deduction Account. A Participant may not make any additional payments to the
Participant’s Payroll Deduction Account, except as expressly provided in the Plan or as authorized
by the Committee.

     (c) No Interest. No interest or other earnings will accrue on a Participant’s Contributions
to the Plan or be payable to a Participant upon any payment to or withdrawal by such Participant of
funds from such Participant’s Payroll Deduction Account.

     (d) Non-U.S. Contributions. In countries where payroll deductions are not permissible or
feasible, the Committee may, in its sole discretion, permit an Employee to participate in the Plan
by alternative means. Except as otherwise specified by the Committee, Contributions (including
payroll deductions) made with respect to Employees paid in currencies other than U.S. dollars will
be accumulated in local currency and converted to U.S. dollars as of the Purchase Date.

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Section 7

STOCK PURCHASES

     (a) Automatic Purchase. Effective as of the close of business on each Purchase Date, but
subject to the limitations of Section 8, each Participant will be deemed, without further action,
to have automatically purchased the number of whole Shares that the Participant’s Payroll Deduction
Account balance can purchase at the Purchase Price specified by the Committee as applicable for
that Purchase Period on that Purchase Date and such Shares will be considered to be issued and
outstanding. Except as otherwise specified by the Committee, any amounts that are not sufficient
to purchase a whole Share will be returned to each Participant following the Purchase Period.

     (b) Delivery of Shares. Purchased Shares shall be credited in book entry form as soon as
practicable after each Purchase Date to an account administered by a designated custodian, bank or
financial institution. The Committee may require that Shares be retained by the account
administrator for a specified period of time and may restrict dispositions during that period, and
the Committee may establish other procedures to permit tracking of disqualifying dispositions of
the Shares or to restrict transfer of the Shares. A Participant shall not be permitted to pledge,
transfer, or sell Shares until they are issued in book entry, except as otherwise permitted by the
Committee and subject to the Company’s policies regarding securities trading.

     (c) Notice Restrictions. The Committee may require, as a condition of participation in the
Plan, that each Participant agree to notify the Company if the Participant sells or otherwise
disposes of any Shares within two years of the Offering Date or one year of the Purchase Date for
the Purchase Period in which the Shares were purchased.

     (d) Shareholder Rights. A Participant will have no interest or voting right in a Share until
a Share has been purchased on the Participant’s behalf under the Plan.

Section 8

LIMITATION ON PURCHASES

     (a) Limitations on Aggregate Shares Available During a Purchase Period. With respect to each
Purchase Period, the Committee, at its discretion, may specify the maximum number of Shares that
may be purchased or such other limitations that it may deem appropriate, subject to the aggregate
number of Shares authorized under Section 12 of this Plan. If the number of Shares to be purchased
on a Purchase Date exceeds the number of Shares available for purchase under the Plan, the Shares
purchased on such Purchase Date shall be reduced to an amount determined by the Committee not to
exceed the number of Shares so available for purchase and shall be allocated by the Committee pro
rata among the Participants in the Purchase Period in proportion to the relative amounts credited
to their accounts. Any amounts not thereby applied to the purchase of Shares under the Plan shall
be refunded to the Participants after the end of the Purchase Period, without interest.

     (b) Limitations on Participant Purchases. Participant purchases are subject to the following
limitations:

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     (1) Purchase Period Limitation. Subject to the calendar year limits provided in (2)
below, the maximum number of Shares that a Participant will have the right to purchase in
any Purchase Period will be determined by dividing (i) the accrual limit specified in Code
Section 423(b)(8) by (ii) the Fair Market Value of one Share on the Offering Date for such
Purchase Period.

     (2) Calendar Year Limitation. No right to purchase Shares under the Plan will be
granted to an Employee if such right, when combined with all other rights and options
granted under all of the Code Section 423 employee stock purchase plans of the Company, its
Subsidiaries or any parent corporation (within the meaning of Code Section 424(e)), would
permit the Employee to purchase Shares with a Fair Market Value (determined at the time the
right or option is granted) in excess of the accrual limit specified in Code Section
423(b)(8) for each calendar year in which the right or option is outstanding at any time,
determined in accordance with Code Section 423(b)(8).

     (c) Refunds. As of the first Purchase Date on which this Section 8 limits a Participant’s
ability to purchase Shares, the Participant’s payroll deductions will terminate, and the unused
balance will be returned to such Participant without interest.

Section 9

WITHDRAWAL FROM PARTICIPATION

          Subject to the Company’s policies regarding securities trading, a Participant may cease
participation in a Purchase Period at any time prior to the Purchase Date and withdraw all, but not
less than all, of the Contributions credited to the Participant’s Payroll Deduction Account by
providing at least 15 days’ prior written notice in the form and manner prescribed by the
Committee. Partial cash withdrawals shall not be permitted. If a Participant elects to withdraw,
the Participant may not make any further Contributions to the Plan for the purchase of Shares
during that Purchase Period. A Participant’s voluntary withdrawal during a Purchase Period will
not have any effect upon the Participant’s eligibility to participate in the Plan during a
subsequent Purchase Period.

Section 10

EMPLOYMENT TERMINATION

     (a) In General. If a Participant’s employment with the Company or a Designated Subsidiary
terminates for any reason, the Participant will cease to participate in the Plan and the Company or
its designee will refund the balance in the Participant’s Payroll Deduction Account without
interest.

     (b) Leaves of Absence. The Committee may establish administrative policies regarding a
Participant’s rights to continue to participate in the Plan in the event of such Participant’s
leave of absence.

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Section 11

PLAN ADMINISTRATION AND AMENDMENTS

          The Plan will be administered by the Committee, which will be appointed by the Board. The
Committee will initially be the Compensation Committee of the Board unless and until the Board
appoints another committee to administer the Plan; provided, however, that such committee shall
satisfy the independence requirements under Section 16 of the Securities Exchange Act of 1934, as
amended, and as prescribed by any stock exchange on which the Common Stock is listed.

          Subject to the express provisions of the Plan, the Committee will have the discretionary
authority to interpret the Plan and to make factual and legal determinations; to take any actions
necessary to implement the Plan; to prescribe, amend, and rescind rules and regulations relating to
the Plan; and to make all other determinations necessary or advisable in administering the Plan.
All such determinations will be final and binding upon all persons. The Committee may request
advice or assistance or employ or designate such other persons as are necessary or appropriate for
proper administration of the Plan.

          To the fullest extent permitted by law, the Company shall indemnify and hold harmless any
member of the Board or any Committee and other individuals performing services on behalf of the
Committee, against any liability, cost or expense arising as a result of any claim asserted by any
person or entity under applicable laws with respect to any action or failure to act of such
individuals taken in connection with this Plan, except claims or liabilities arising on account of
the willful misconduct or bad faith of such Board member, Committee member or individual.

Section 12

RESERVED SHARES

          Subject to adjustments as provided in Section 13, the maximum number of Shares available for
purchase under the Plan on or after the Effective Date is 2,250,000 Shares. Shares issued under
the Plan may be Shares of original issuance, Shares held in treasury, or Shares that have been
reacquired by the Company.

Section 13

CAPITAL CHANGES

     (a) Changes in Capitalization. Subject to any required action by the shareholders of the
Company, the right to purchase Shares covered by a current Purchase Period and the number of Shares
which have been authorized for issuance under the Plan for any future Purchase Period, the maximum
number of Shares each Participant may purchase each Purchase Period (pursuant to Section 8), as
well as the price per Share and the number of Shares covered by each right under the Plan which
have not yet been purchased shall be proportionately adjusted, as determined by the Committee, for
any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or any other increase
or decrease in the number of Shares effected without receipt of consideration by the Company.
Except as expressly provided in the immediately

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preceding sentence and unless otherwise determined by the Committee, no issuance by the
Company of shares of stock of any class, or securities convertible into or exchangeable for shares
of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of Shares hereunder.

     (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of
the Company, the Purchase Period then in progress shall be shortened by the Committee’s setting a
new Purchase Date and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Committee. The new Purchase Date
selected by the Committee shall be before the date of the Company’s proposed dissolution or
liquidation. Each Participant will be notified in writing, at least 10 business days prior to the
new Purchase Date or such shorter period as the Committee may determine, that the Purchase Date for
the Participant’s right to purchase Shares has been changed to the new Purchase Date and that the
applicable number of Shares will automatically be purchased on the new Purchase Date, unless prior
to such date the Participant has withdrawn from the Plan as provided in Section 9 hereof.

     (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the
assets of the Company, or the merger or consolidation of the Company with or into another entity,
unless provided otherwise by the Committee each outstanding right to purchase Shares shall be
assumed, or an equivalent right to purchase shares substituted, by the successor or resulting
entity or a parent or subsidiary of the such entity. In the event that the successor or resulting
entity refuses to assume or substitute the right to purchase Shares or if so determined by the
Committee, any Purchase Period then in progress shall be shortened by the Committee’s setting a new
Purchase Date and any Purchase Period then in progress shall end on the new Purchase Date. The new
Purchase Date selected by the Committee shall be before the effective date of such proposed sale,
merger or consolidation. Each Participant will be notified in writing at least 10 business days
prior to the new Purchase Date or such shorter period as the Committee may determine that the
Purchase Date for the Participant’s right to purchase Shares has been changed to the new Purchase
Date and that the applicable number of Shares will be purchased automatically on the new Purchase
Date, unless prior to such date the Participant has withdrawn from the Plan as provided in Section
9 hereof.

Section 14

AMENDMENT OR TERMINATION OF THE PLAN

          The Board or the Committee, in its sole discretion, may suspend or terminate the Plan, or
amend the Plan in any respect; provided, however, that the stockholders of the Company must approve
any amendment to the extent required by Code Section 423 or the requirements of any stock exchange
on which the Common Stock is listed.

          The Plan and all rights of Employees under the Plan will terminate: (a) immediately following
the Purchase Date on which the number of Shares purchased on such date has been reduced pursuant to
Section 8(a), unless otherwise determined by the Board, or (b) at any date at the discretion of the
Board or the Committee. Upon termination of the Plan, each Participant will receive the balance in
the Participant’s Payroll Deduction Account, without interest.

8

 

Section 15

REGULATORY AND TAX COMPLIANCE; LISTING OF SHARES

          The Plan, the grant and exercise of the rights to purchase Shares under the Plan, and the
Company’s obligation to sell and deliver Shares upon the exercise of rights to purchase Shares,
will be subject to all applicable federal, state and foreign laws, rules and regulations, and to
such approvals by any regulatory or government agency as may be required or desirable. The Plan is
intended to comply with Rule 16b-3 under the U.S. Securities Exchange Act of 1934, as amended. Any
provision inconsistent with such Rule shall be inoperative and shall not affect the validity of the
Plan.

          If at any time the Board or the Committee shall determine that the listing, registration or
qualification of the Shares covered by the Plan upon any national securities exchange or reporting
system or under any applicable law is necessary or desirable as a condition of, or in connection
with, the sale or purchase of Shares under the Plan, no Shares will be sold, issued or delivered
unless and until such listing, registration or qualification shall have been effected or obtained,
or otherwise provided for.

Section 16

NON-U.S. JURISDICTIONS

          The Committee may, in its sole discretion, adopt such rules or procedures to accommodate the
requirements of local laws of non-U.S. jurisdictions, including rules or procedures relating to the
handling of payroll deductions, conversion of local currency, payroll taxes and withholding
procedures, as the Committee in its sole discretion deems appropriate. The Committee may also
adopt rules and procedures different from those set forth in the Plan applicable to Participants
who are employed by specific Designated Subsidiaries or at certain non-U.S. locations that are not
intended to be within the scope of Code Section 423, subject to the provisions of Section 12, and
may where appropriate establish one or more sub-plans for this purpose.

Section 17

MISCELLANEOUS

     (a) Nontransferability. Except by the laws of descent and distribution, no benefit provided
hereunder, including a right to purchase Shares, shall be subject to alienation, assignment, or
transfer by a Participant (or by any person entitled to such benefit pursuant to the terms of this
Plan), nor shall it be subject to attachment or other legal process of whatever nature, and any
attempted alienation, assignment, attachment, or transfer shall be void and of no effect whatsoever
and, upon any such attempt, the benefit shall terminate and be of no force or effect. During a
Participant’s lifetime, rights granted to the Participant hereunder shall be exercisable only by
the Participant. Shares of Common Stock shall be delivered only to the Participant or, in the
event of his death, his properly designated beneficiary entitled to receive the same or, in the
absence of such designation, to the executor, administrator or other legal representative of the
Participant’s estate.

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     (b) Tax Withholding. The Company or any Designated Subsidiary shall have the right to
withhold from all payments hereunder any federal, state, local, or non-U.S. income, social
insurance, or other taxes that it deems are required by law to be withheld with respect to such
payments. If such withholding is insufficient to satisfy such Federal, state, local or non-U.S.
taxes, the Participant shall be required to pay to the Company or Designated Subsidiary, as the
case may be, such amount required to be withheld or make such other arrangements satisfactory to
the Company or such Designated Subsidiary, as the Committee shall determine.

     (c) No Employment Right. Nothing contained in this Plan nor any action taken hereunder shall
be construed as giving any right to any individual to be retained as an officer or Employee of the
Company or any other employer or subsidiary or affiliate of the Company.

     (d) Equal Rights and Privileges. All eligible Employees shall have equal rights and
privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan”
within the meaning of Section 423 or any successor provision of the Code and related regulations.
Any provision of the Plan which is inconsistent with Section 423 or any successor provision of the
Code shall without further act or amendment by the Company be reformed to comply with the
requirements of Section 423.

     (e) No Rights as Shareholder. A Participant shall not be considered a shareholder with
respect to Shares to be purchased until the Purchase Date. Thus, a Participant shall not have a
right to any dividend or distribution on Shares subject to purchase during a Purchase Period.

     (f) Relationship to Other Benefits. It is not intended that any rights or benefits provided
under this Plan be considered part of normal or expected compensation for purposes of calculating
any severance, redundancy, termination indemnity, end of service awards, pension, retirement,
profit sharing, or group insurance plan or similar benefits or payments. No payment under this
Plan shall be taken into account in determining any benefits under any severance, termination, end
of service awards, pension, retirement, profit sharing, or group insurance plan of the Company or
any Designated Subsidiary or subsidiary or affiliate of the Company.

     (g) Expenses. The expenses of implementing and administering this Plan shall be borne by the
Company. Any brokerage fees for the subsequent transfer or sale of Shares acquired under this Plan
shall be paid by the Participant (or his beneficiary or estate, if applicable).

     (h) Titles and Headings. The titles and headings of the Sections and subsections in this Plan
are for convenience of reference only, and in the event of any conflict, the text of this Plan,
rather than such titles or headings, shall control.

     (i) Application of Funds. All funds received by the Company under the Plan shall constitute
general funds of the Company.

     (j) Nonexclusivity of Plan. Neither the adoption of the Plan by the Board nor the submission
of the Plan to the stockholders of the Company for approval shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements as it may deem
desirable, including, without limitation, the granting of stock options otherwise than

10

 

under the Plan, and such arrangements may be either applicable generally or only in specific
cases.

     (k) Duration of Plan. Notwithstanding any provision in the Plan, no rights to purchase Shares
shall be granted hereunder prior to the Effective Date. Following termination of the Plan in
accordance with Section 14, the Plan shall remain in effect until all rights granted under the Plan
prior to such termination have been exercised or expired, vested or forfeited, and/or otherwise
satisfied.

     (l) Governing Law. This Plan and all determinations made and actions taken pursuant hereto,
to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of
the United States, shall be governed by and construed in accordance with the laws of the State of
Delaware.

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          IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized
officer, effective as provided herein.

	 	 	 	 	 	 	 
	 	 	DR PEPPER SNAPPLE GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James L. Baldwin, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Corporate Secretary	 	 

-12-EX-10.1

			
	
	 	Exhibit 10.1

[CONFIDENTIAL TREATMENT REQUESTED.

CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY

WITH THE COMMISSION.]

EUR 133,960,000

FACILITY AGREEMENT

Dated 6 May 2008

and made between

FIRST SOLAR MALAYSIA SDN. BHD. (COMPANY NO. 758827-T)

as Borrower

IKB DEUTSCHE INDUSTRIEBANK AG

as Arranger

NATIXIS ZWEIGNIEDERLASSUNG DEUTSCHLAND

as Facility Agent and Original Lender

AKA AUSFUHRKREDIT-GESELLSCHAFT MBH

as Original Lender

and

NATIXIS LABUAN BRANCH

as Security Agent

 

EXPORT FINANCING OF EQUIPMENT IN RELATION TO

FOUR SOLAR MODULE MANUFACTURING PLANTS

LOCATED IN KULIM HI TECH PARK, KEDAH,

MALAYSIA

 

CLIFFORD CHANCE PARTNERSCHAFTSGESELLSCHAFT VON RECHTSANWÄLTEN, WIRTSCHAFTSPRÜFERN,
STEUERBERATERN UND SOLICITORS

SITZ: FRANKFURT AM MAIN · AG FRANKFURT AM MAIN PR 1000

 

 

CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	 
	 	 	 	 	 	 
	1.

	 	Definitions and Interpretation
	 	 	2	 
	 
	 	 	 	 	 	 
	2.

	 	The Facilities
	 	 	27	 
	 
	 	 	 	 	 	 
	3.

	 	Utilisation of the Facilities
	 	 	31	 
	 
	 	 	 	 	 	 
	4.

	 	Interest
	 	 	33	 
	 
	 	 	 	 	 	 
	5.

	 	Interest Rate and Payment of Interest
	 	 	35	 
	 
	 	 	 	 	 	 
	6.

	 	Market Disruption and Alternative Interest Rates
	 	 	36	 
	 
	 	 	 	 	 	 
	7.

	 	Notification
	 	 	37	 
	 
	 	 	 	 	 	 
	8.

	 	Repayment
	 	 	38	 
	 
	 	 	 	 	 	 
	9.

	 	Voluntary Cancellation and Prepayments
	 	 	40	 
	 
	 	 	 	 	 	 
	10.

	 	Mandatory Cancellation and Prepayments
	 	 	42	 
	 
	 	 	 	 	 	 
	11.

	 	Taxes
	 	 	43	 
	 
	 	 	 	 	 	 
	12.

	 	VAT
	 	 	46	 
	 
	 	 	 	 	 	 
	13.

	 	Tax Receipts
	 	 	46	 
	 
	 	 	 	 	 	 
	14.

	 	Increased Costs
	 	 	47	 
	 
	 	 	 	 	 	 
	15.

	 	Illegality
	 	 	48	 
	 
	 	 	 	 	 	 
	16.

	 	Mitigation
	 	 	49	 
	 
	 	 	 	 	 	 
	17.

	 	Representations and Warranties
	 	 	49	 
	 
	 	 	 	 	 	 
	18.

	 	Financial Information
	 	 	52	 
	 
	 	 	 	 	 	 
	19.

	 	Financial Covenants
	 	 	54	 
	 
	 	 	 	 	 	 
	20.

	 	Covenants
	 	 	57	 
	 
	 	 	 	 	 	 
	21.

	 	Events of Default
	 	 	61	 
	 
	 	 	 	 	 	 
	22.

	 	Fees
	 	 	64	 

 

 

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	 
	 	 	 	 	 	 
	23.

	 	Costs and Expenses
	 	 	66	 
	 
	 	 	 	 	 	 
	24.

	 	Indemnity and Break Costs
	 	 	67	 
	 
	 	 	 	 	 	 
	25.

	 	Payments
	 	 	69	 
	 
	 	 	 	 	 	 
	26.

	 	Sharing
	 	 	71	 
	 
	 	 	 	 	 	 
	27.

	 	The Facility Agent, the Security Agent, the Arranger and the Lenders
	 	 	72	 
	 
	 	 	 	 	 	 
	28.

	 	Assignments and Transfers
	 	 	79	 
	 
	 	 	 	 	 	 
	29.

	 	Calculations and Evidence of Debt
	 	 	81	 
	 
	 	 	 	 	 	 
	30.

	 	Remedies and Waivers, Partial Invalidity
	 	 	82	 
	 
	 	 	 	 	 	 
	31.

	 	Notices
	 	 	82	 
	 
	 	 	 	 	 	 
	32.

	 	Counterparts
	 	 	84	 
	 
	 	 	 	 	 	 
	33.

	 	Amendments
	 	 	84	 
	 
	 	 	 	 	 	 
	34.

	 	Hermes Guarantee
	 	 	85	 
	 
	 	 	 	 	 	 
	35.

	 	Non Applicability of Section 181 BGB
	 	 	86	 
	 
	 	 	 	 	 	 
	36.

	 	Confirmation Concerning Money Laundering
	 	 	86	 
	 
	 	 	 	 	 	 
	37.

	 	Governing Law
	 	 	86	 
	 
	 	 	 	 	 	 
	38.

	 	Jurisdiction
	 	 	86	 
	 
	 	 	 	 	 	 
	39.

	 	Language
	 	 	87	 
	 
	 	 	 	 	 	 
	SCHEDULE 1 The Original Lenders	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 2 Form of Transfer Certificate	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 3 Conditions Precedent	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 4 Form of Drawdown Request	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 5 Form of Selection Notice	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 6 Form of Compliance Certificate	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 7 Authorisations	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 8 Form of Status Confirmation	 	 	 	 

 

 

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	 
	 	 	 	 	 	 
	SCHEDULE 9 Form of Starting Point Confirmation	 	 	 	 
	 
	 	 	 	 	 	 
	SCHEDULE 10 Form of Repayment Schedule	 	 	 	 

 

1

THIS AGREEMENT is made on 6 May 2008 (the “Agreement”)

BETWEEN

	(1)	 	FIRST SOLAR MALAYSIA SDN. BHD. (Company No. 758827-T), a company limited by shares,
incorporated, organised and validly existing under the laws of Malaysia, having its registered
place of business at 8, Jalan Hi-Tech 3/3, Zoon Industri Fasa 3, Kulim Hi-Tech Park 09000
Kulim, Kedah Darul Aman, Malaysia (the “Borrower”);
	 
	(2)	 	IKB DEUTSCHE INDUSTRIEBANK AKTIENGESELLSCHAFT, a stock corporation incorporated, organised
and validly existing under the laws of the Federal Republic of Germany, having its office at
Wilhelm-Bötzkes-Strasse 1, 40474 Düsseldorf, Federal Republic of Germany and registered in the
commercial register (Handelsregister) of the local court (Amtsgericht) of Düsseldorf, under
number HRB 1130 (in its capacity as “Arranger”);
	 
	(3)	 	NATIXIS ZWEIGNIEDERLASSUNG DEUTSCHLAND, having its office at Im Trutz Frankfurt 55, 60322
Frankfurt am Main, Federal Republic of Germany (in its capacity as “Facility Agent”);
	 
	(4)	 	NATIXIS LABUAN BRANCH, a branch of NATIXIS having its registered office at Level 9, Main
Office Tower, Financial Park Labuan, Jln. Merdeka, 87000, Federal Territory of Labuan,
Malaysia (in its capacity as “Security Agent”); and
	 
	(5)	 	THE PERSONS listed in Schedule 1 (The Original Lenders) (each an “Original Lender” and
together the “Original Lenders”).

WHEREAS

	(A)	 	In view of its business development in Asia, First Solar Inc., Tempe, Arizona, incorporated
in Delaware, United States of America (the “Sponsor”) asked the Arranger to arrange an export
financing, intended to be guaranteed by the Federal Republic of Germany under its credit
insurance scheme, in relation to the construction of four solar module manufacturing plants
(“KLM I”, “KLM II”, “KLM III” and “KLM IV” respectively, each a “KLM”, and together the
“KLMs”) in Malaysia (the “Project”).
	 
	(B)	 	The Project will be owned and operated by the Borrower. The Project commenced construction in
April 2007. KLM I, KLM II, KLM III and KLM IV are expected to reach full volume production by
the second half of 2008, first half of 2009, second half of 2009 and second half of 2009
respectively.

 

2

	(C)	 	The [***] main components of the KLMs, the [***] as well as the
[***] (each together with the other goods and services to be provided under the Supply
Contracts (as defined below) and any of them being referred to as the “Equipment”) are, inter
alia, to be provided under the relevant Supply Contracts by the [***] suppliers [***] (the
“Exporter A”) and [***] (the “Exporter B”) respectively.
	 
	(D)	 	The Equipment shall be delivered by Exporter A and Exporter B under the terms of the Supply
Contracts.
	 
	(E)	 	As Exporter B has entered into the relevant Supply Contracts but the relevant Equipment will
actually be delivered by Exporter B’s affiliate [***] (the “Supplier”), Exporter B has
assigned its payment claims under the relevant Supply Contracts to the Supplier.
	 
	(F)	 	It is intended that the Project benefits from cover by (i) the ECA-Guarantor (as defined
below) under the Hermes Guarantee (as defined below) and (ii) the Sponsor under the Sponsor’s
Guarantee (as defined below).
	 
	(G)	 	The Original Lenders have agreed to make available to the Borrower a facility of up to
EUR 133,960,000 to partially finance the supply and construction of the Equipment and certain
finance costs.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“Advance” means an advance (as from time to time consolidated, divided or reduced by
repayment or prepayment in accordance with the terms thereof) made or to be made by the
Lenders under the Facilities.
	 
	 	 	“Advisors” means the Legal Advisors and/or any other adviser of the Lenders specified in
writing by the Facility Agent and the Borrower as such for the purposes of this Agreement.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

3

	 	 	“Annualised Debt Service” has the meaning ascribed thereto in Clause 19.1 (Financial
Definitions).
	 
	 	 	“Annualised DSCR” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Annualised EBITDA” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Annualised Net Interest Expense” has the meaning ascribed thereto in Clause 19.1 (Financial
Definitions).
	 
	 	 	“Assignment” has the meaning ascribed thereto in Clause 28.3(a) (Assignment and Transfers by
the Lenders).
	 
	 	 	“Auditor” means any of Ernst & Young, KPMG, PricewaterhouseCoopers or Deloitte & Touche or
such other firm of independent auditors of international good standing nominated by the
Borrower.
	 
	 	 	“Authorisations” means any consent, registration, filing, notarisation, certificate,
licence, approval, permit, confirmation, no-objection or exemption from or by or with any
national, regional, administrative, fiscal or governmental body, commission, agency,
authority or similar entity and all creditors’ and shareholders’ consents or approvals
required (i) to ensure the timely transfer of all amounts due under this Agreement; (ii) for
the implementation and operation of the Project; and (iii) for the valid and binding
execution and implementation of this Agreement and the Security Documents, or any part
thereof, including, but not limited to, the items set out in Schedule 7 (Authorisations).
	 
	 	 	“Authorised Signatory” means, in relation to the Borrower, any person who is duly authorised
and in respect of whom the Facility Agent has received a certificate signed by a director or
another Authorised Signatory of the Borrower setting out the name and signature of such
person and confirming such person’s authority to act.
	 
	 	 	“Availability Period” means the period from and including the date of this Agreement to and
including the respective Final Availability Date.
	 
	 	 	“Available Commitment 1” means, in relation to a Lender at any time and save as otherwise
provided herein, its Fixed Rate Commitment under Facility 1 less the aggregate amount which
it has advanced under Facility 1 at such time.

 

4

	 	 	“Available Commitment 2” means, in relation to a Lender at any time and save as otherwise
provided herein, its Fixed Rate Commitment under Facility 2 less the aggregate amount which
it has advanced under Facility 2 at such time.
	 
	 	 	“Available Commitment 3” means, in relation to a Lender at any time and save as otherwise
provided herein, its Fixed Rate Commitment under Facility 3 less the aggregate amount which
it has advanced under Facility 3 at such time.
	 
	 	 	“Available Commitment 4” means, in relation to a Lender at any time and save as otherwise
provided herein, its Fixed Rate Commitment under Facility 4 less the aggregate amount which
it has advanced under Facility 4 at such time.
	 
	 	 	“Available Commitment 5” means, in relation to a Lender at any time and save as otherwise
provided herein, its Fixed Rate Commitment under Facility 5 less the aggregate amount which
it has advanced under Facility 5 at such time.
	 
	 	 	“Available Commitment I” means, in relation to a Lender at any time and save as otherwise
provided herein, its Floating Rate Commitment under Facility I less the aggregate amount
which it has advanced under Facility I at such time.
	 
	 	 	“Available Commitment II” means, in relation to a Lender at any time and save as otherwise
provided herein, its Floating Rate Commitment under Facility II less the aggregate amount
which it has advanced under Facility II at such time.
	 
	 	 	“Available Commitment III” means, in relation to a Lender at any time and save as otherwise
provided herein, its Floating Rate Commitment under Facility III less the aggregate amount
which it has advanced under Facility III at such time.
	 
	 	 	“Available Commitment IV” means, in relation to a Lender at any time and save as otherwise
provided herein, its Floating Rate Commitment under Facility IV less the aggregate amount
which it has advanced under Facility IV at such time.
	 
	 	 	“Available Commitment V” means, in relation to a Lender at any time and save as otherwise
provided herein, its Floating Rate Commitment under Facility V less the aggregate amount
which it has advanced under Facility V at such time.
	 
	 	 	“Available Commitments” means each of the Available Fixed Rate Commitments and the Available
Floating Rate Commitments and “Available Commitment” means any of them.
	 
	 	 	“Available Facilities” means each of the Available Fixed Rate Facilities and the Available
Floating Rate Facilities and “Available Facility” means any of them.

 

5

	 	 	“Available Facility 1” means, at any time, the aggregate amount of the Available Commitment
1 adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment 1 of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility 2” means, at any time, the aggregate amount of the Available Commitment
2 adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment 2 of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility 3” means, at any time, the aggregate amount of the Available Commitment
3 adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment 3 of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility 4” means, at any time, the aggregate amount of the Available Commitment
4 adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment 4 of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility 5” means, at any time, the aggregate amount of the Available Commitment
5 adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment 5 of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility I” means, at any time, the aggregate amount of the Available Commitment
I adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment I of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility II” means, at any time, the aggregate amount of the Available Commitment
II adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment II of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility III” means, at any time, the aggregate amount of the Available
Commitment III adjusted in the case of any proposed drawdown so as to take into account any
reduction in the Available Commitment III of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility IV” means, at any time, the aggregate amount of the Available Commitment
IV adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment IV of a Lender pursuant to the terms hereof.
	 
	 	 	“Available Facility V” means, at any time, the aggregate amount of the Available Commitment
V adjusted in the case of any proposed drawdown so as to take into account any reduction in
the Available Commitment V of a Lender pursuant to the terms hereof.

 

6

	 	 	“Available Fixed Rate Commitments” means Available Commitment 1, Available Commitment 2,
Available Commitment 3, Available Commitment 4 and Available Commitment 5 and “Available
Fixed Rate Commitment” means any of them.
	 
	 	 	“Available Fixed Rate Facilities” means Available Facility 1, Available Facility 2,
Available Facility 3, Available Facility 4 and Available Facility 5 and “Available Fixed
Rate Facility” means any of them.
	 
	 	 	“Available Floating Rate Commitments” means Available Commitment I, Available Commitment II,
Available Commitment III, Available Commitment IV and Available Commitment V and “Available
Floating Rate Commitment” means any of them.
	 
	 	 	“Available Floating Rate Facilities” means Available Facility I, Available Facility II,
Available Facility III, Available Facility IV and Available Facility V and “Available
Floating Rate Facility” means any of them.
	 
	 	 	“BGB” means the German Civil Code (Bürgerliches Gesetzbuch).
	 
	 	 	“Break Costs” means any costs arising pursuant to Clause 24.2 (Break Costs).
	 
	 	 	“Budget” means the annual budget for a Financial Year in relation to the Borrower prepared
by the management of the Borrower including, but not limited to, a detailed calculation of
the DSCR in this respect to be determined as a forecast for such Financial Year, applying
the principles as set out in Clause 19 (Financial Covenants) but on a forecast basis, in
form and substance satisfactory to the Facility Agent as updated from time to time in
accordance with this Agreement.
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday or December 31) which is not a
public holiday and on which banks are open for general business in:

	 	(a)	 	Frankfurt am Main, Germany, New York, United States of America and Kuala
Lumpur, Malaysia; and
	 
	 	(b)	 	(in relation to any date for the rate fixing of, or the payment or purchase of,
a sum denominated in euro and in addition to the days set out in (a) above) any day on
which the Trans-European Automated Real-time Gross settlement Express Transfer (TARGET)
system is operating.

	 	 	“CAFDS” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Capital Expenditure” has the meaning ascribed thereto in Clause 19.1 (Financial
Definitions).

 

7

	 	 	“CIRR” means the Commercial Interest Reference Rate as being officially supported and
offered subject to the availability of funds from the European Recovery Program (ERP) export
financing program and the approval of the competent ministries of the Federal Republic of
Germany, and as being published from time to time by the Organisation for Economic
Co-operation and Development (OECD).
	 
	 	 	“Commitments” means each Fixed Rate Commitment and each Floating Rate Commitment and
“Commitment” means any of them.
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form set out in Schedule 6
(Form of Compliance Certificate).
	 
	 	 	“Conditions Precedent” means the conditions precedent set out in Schedule 3 (Conditions
Precedent).
	 
	 	 	“Contract Value” means any of Contract Value [***] Ia, Contract Value [***] Ib, Contract
Value [***] I, Contract Value [***] IIa, Contract Value [***] IIb, Contract Value [***] II,
Contract Value [***] IIIa, Contract Value [***] IIIb, Contract Value [***] III, Contract
Value [***] IVa, Contract Value [***] IVb and Contract Value [***] IV.
	 
	 	 	“Contract Value [***] Ia” means EUR 11,848,000.
	 
	 	 	“Contract Value [***] Ib” means EUR 21,352,000.
	 
	 	 	“Contract Value [***] I” means EUR 6,550,000.
	 
	 	 	“Contract Value [***] IIa” means EUR 11,255,600.
	 
	 	 	“Contract Value [***] IIb” means EUR 20,284,400.
	 
	 	 	“Contract Value [***] II” means EUR 6,530,550.
	 
	 	 	“Contract Value [***] IIIa” means EUR 11,435,600.
	 
	 	 	“Contract Value [***] IIIb” means EUR 20,609,200.
	 
	 	 	“Contract Value [***] III” means EUR 6,400,000.
	 
	 	 	“Contract Value [***] IVa” means EUR 11,435,600.
	 
	 	 	“Contract Value [***] IVb” means EUR 20,609,200.
	 
	 	 	“Contract Value [***] IV” means EUR 6,400,000.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

8

	 	 	“Contract Values” means the aggregate of Contract Values KLM I, Contract Values KLM II,
Contract Values KLM III and Contract Values KLM IV.
	 
	 	 	“Contract Values KLM I” means the aggregate of Contract Value [***] Ia, Contract Value [***]
Ib and Contract Value [***] I.
	 
	 	 	“Contract Values KLM II” means the aggregate of Contract Value [***] IIa, Contract Value
[***] IIb and Contract Value [***] II.
	 
	 	 	“Contract Values KLM III” means the aggregate of Contract Value [***] IIIa, Contract Value
[***] IIIb and Contract Value [***] III.
	 
	 	 	“Contract Values KLM IV” means the aggregate of Contract Value [***] IVa, Contract Value
[***] IVb and Contract Value [***] IV.
	 
	 	 	“Debt Service” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Drawdown Date” means the date for which drawdown of an Advance is requested and specified
in the applicable Drawdown Request or on which an Advance is being made in accordance with
Clause 3.2(c).
	 
	 	 	“Drawdown Request” means a request in writing from the Borrower to the Facility Agent for
the occurrence of a Utilisation under the Facilities substantially in the form set out in
Schedule 4 (Form of Drawdown Request).
	 
	 	 	“DSCR” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“EBITDA” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“ECA-Fees” means the fees to be paid to the ECA-Guarantor under or in connection with the
Hermes Guarantee.
	 
	 	 	“ECA-Fee Shortfall” means any shortfall of the loan amount available to meet the relevant
ECA-Fees against the actual aggregate amount of the relevant ECA-Fees as invoiced by the
ECA-Guarantor with its final invoice.
	 
	 	 	“ECA-Guarantor” means Euler Hermes Kreditversicherungs-AG, Hamburg, Federal Republic of
Germany.
	 
	 	 	“Encumbrance” means a mortgage, pledge, lien, charge, hypothecation, security interest,
title retention, preferential right or trust arrangement, obligations under leasing
agreements and conditional purchase agreements, and any other collateral agreement or
similar arrangement whether on existing or future assets.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

9

	 	 	“Environmental Claim” means any claim, notice, prosecution, demand, action, official
warning, abatement or other order (conditional or otherwise) relating to, or any
notification or order requiring compliance with, any Environmental Law or Environmental
Permits.
	 
	 	 	“Environmental Law” means any law applicable to the Project and the Borrower which relates
to the pollution or protection of the environment or harm to or the protection of human
health or the health of animals or plants.
	 
	 	 	“Environmental Permits” means any authorisation required under any Environmental Law for the
construction or operation of the Project and business of the Borrower conducted on or from
the premises owned or used by the Borrower in connection with the Project.
	 
	 	 	“Equipment” means the entirety of the goods and services to be provided by the Exporters
under the Supply Contracts.
	 
	 	 	“EURIBOR” means in relation to any amount to be advanced to, or owing by, the Borrower
hereunder in euro on which interest for a given period is to accrue:

	 	(a)	 	the percentage rate per annum equal to the offered quotation which appears on
the page of the Reuters Screen which displays an average rate of the Banking Federation
of the European Union for euro (being currently page EURIBOR) for such period at or
about 11.00 a.m. (Brussels time) on the Quotation Date for such period or, if such page
or service shall cease to be available, such other page or such other services used for
the purpose of displaying an average rate of the Banking Federation of the European
Union as the Facility Agent, after consultation with the Borrower, shall select; or
	 
	 	(b)	 	if no quotation for the euro for the relevant period is displayed and the
Facility Agent has not selected an alternative service on which a quotation is
displayed, the arithmetic mean (rounded upwards to four decimal places) of the rates
(as notified to the Lenders) at which each of the Reference Banks was offering to prime
banks in the European interbank market deposits in the euro of an equivalent amount and
for such period at or about 11.00 a.m. (Brussels time) on the Quotation Date.

	 	 	“Event of Default” means any circumstance described as such in Clause 21 (Events of
Default).
	 
	 	 	“Exporter A” means [***].
	 
	 	 	“Exporter B” means [***].

 

			
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10

	 	 	“Exporter B Assignment” means the assignment of the payment claims to the Supplier by
Exporter B under the Supply Contracts entered into by Exporter B, dated on or about the date
hereof.
	 
	 	 	“Exporters” means Exporter A, Exporter B and the Supplies and “Exporter” means any of them.
	 
	 	 	“Facilities” means each of the Fixed Rate Facilities and the Floating Rate Facilities and
“Facility” means any of them.
	 
	 	 	“Facility 1” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(a) (Grant of the Facilities).
	 
	 	 	“Facility 2” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(b) (Grant of the Facilities).
	 
	 	 	“Facility 3” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(c) (Grant of the Facilities).
	 
	 	 	“Facility 4” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(d) (Grant of the Facilities).
	 
	 	 	“Facility 5” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(e) (Grant of the Facilities).
	 
	 	 	“Facility I” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(f) (Grant of the Facilities).
	 
	 	 	“Facility II” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(g) (Grant of the Facilities).
	 
	 	 	“Facility III” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(h) (Grant of the Facilities).
	 
	 	 	“Facility IV” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(i) (Grant of the Facilities).
	 
	 	 	“Facility V” means the euro term loan facility granted to the Borrower as described in
Clause 2.1(j) (Grant of the Facilities).
	 
	 	 	“Facility 1 Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility 1.

 

11

	 	 	“Facility 2 Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility 2.
	 
	 	 	“Facility 3 Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility 3.
	 
	 	 	“Facility 4 Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility 4.
	 
	 	 	“Facility 5 Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility 5.
	 
	 	 	“Facility I Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility I.
	 
	 	 	“Facility II Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility II.
	 
	 	 	“Facility III Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility III.
	 
	 	 	“Facility IV Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility IV.
	 
	 	 	“Facility V Loan” means, at any time, the aggregate principal amount of the outstanding
Advances under Facility V.
	 
	 	 	“Facility Office” means, in relation to the Facility Agent, the office identified with its
signature below or such other office as it may select by notice and, in relation to any
Lender, the office(s) notified by it to the Facility Agent in writing prior to the date
hereof (or, in the case of a Transferee, at the end of the Transfer Certificate to which it
is a party as Transferee) or such other office(s) as it may from time to time select by
notice to the Facility Agent.
	 
	 	 	“Final Availability Date 1/I” means in respect of Facility 1 and Facility I the earlier of
(a) the date when each of the Available Facility 1 and Available Facility I are zero and (b)
30 June 2008.
	 
	 	 	“Final Availability Date 2/II” means in respect of Facility 2 and Facility II the earlier of
(a) the date when each of the Available Facility 2 and the Available Facility II are zero
and (b) 30 September 2008.

 

12

	 	 	“Final Availability Date 3/III” means in respect of Facility 3 and Facility III the earlier
of (a) the date when each of the Available Facility 3 and the Available Facility III are
zero and (b) 31 March 2009.
	 
	 	 	“Final Availability Date 4/IV” means in respect of Facility 4 and Facility IV the earlier of
(a) the date when each of the Available Facility 4 and the Available Facility IV are zero
and (b) 30 June 2009.
	 
	 	 	“Final Availability Date 5/V” means in respect of Facility 5 and Facility V the earlier of
(a) the date when each of the Available Facility 5 and the Available Facility V are zero and
(b) 31 August 2008.
	 
	 	 	“Final Availability Date” means Final Availability Date 1/I, Final Availability Date 2/II,
Final Availability Date 3/III, Final Availability Date 4/IV and the Final Availability Date
5/V.
	 
	 	 	“Finance Documents” means:

	 	(a)	 	this Agreement;
	 
	 	(b)	 	the Subordination Agreement;
	 
	 	(c)	 	the Security Documents; and
	 
	 	(d)	 	any other document designated as such by the Facility Agent and agreed by the
Borrower.

	 	 	“Finance Parties” means the Lenders, the Arranger, the Facility Agent and the Security
Agent.
	 
	 	 	“Financial Covenant” means any of the covenants set out in Clause 19 (Financial Covenants).
	 
	 	 	“Financial Indebtedness” means any indebtedness for or in respect of:

	 	(a)	 	moneys borrowed;
	 
	 	(b)	 	any amount raised by acceptance under any acceptance credit facility or
dematerialised equivalent;
	 
	 	(c)	 	any amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;

 

13

	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract
which would, in accordance with generally accepted accounting principles applicable to
a Borrower, be treated as a finance or capital lease;
	 
	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they
are sold on a non-recourse basis);
	 
	 	(f)	 	any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;
	 
	 	(g)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value shall be taken into
account);
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a bank or
financial institution; and
	 
	 	(i)	 	the amount of any liability in respect of any guarantee or indemnity for any of
the items referred to in paragraphs (a) to (h) above.

"Financial Year” means the accounting year of the Borrower and the Sponsor

	 	(a)	 	in respect of 2007 until and including 29 December 2007;
	 
	 	(b)	 	from 30 December 2007 until and including 27 December 2008;
	 
	 	(c)	 	from 28 December 2008 until and including 26 December 2009;
	 
	 	(d)	 	from 27 December 2009 until and including 25 December 2010;
	 
	 	(e)	 	from 26 December 2010 until and including 31 December 2011;
	 
	 	(f)	 	from 01 January 2012 until and including 29 December 2012;
	 
	 	(g)	 	from 30 December 2012 until and including 28 December 2013;
	 
	 	(h)	 	from 29 December 2013 until and including 27 December 2014;
	 
	 	(i)	 	from 28 December 2014 until and including 26 December 2015;
	 
	 	(j)	 	from 27 December 2015 until and including 31 December 2016; and
	 
	 	(k)	 	from 01 January 2017 until and including 30 December 2017.

 

14

“First Repayment Date” means in relation to a Facility the earlier of (i) the day of the
month falling six months after the respective Starting Point for a KLM in respect of which
that Facility was drawn; and (ii) the Ultimate First Repayment Date 1/I in relation to
Facility 1/I, the Ultimate First Repayment Date 2/II in relation to Facility 2/II, the
Ultimate First Repayment Date 3/III in relation to Facility 3/III, the Ultimate First
Repayment Date 4/IV in relation to Facility 4/IV and the Ultimate First Repayment Date 5/V
in relation to Facility 5/V unless such day is not a Business Day, in case of which the
First Repayment Date shall be the next Business Day in that calendar month (if there is one)
or the preceding Business Day (if there is not).

“First Solar Group” means the Sponsor and its Subsidiaries.

“Fixed Rate Commitment” means:

	 	(a)	 	in relation to an Original Lender, at any time and save as otherwise provided
for herein, the amount allocated to its name in Schedule 1 (The Original Lenders) as
reduced by any assignments/transfers in accordance with this Agreement or as specified
in the relevant Transfer Certificate(s); and
	 
	 	(b)	 	in relation to any other Lender, the amount of any Commitment
assigned/transferred in accordance with this Agreement or as specified in the relevant
Transfer Certificate(s),

to the extent not cancelled or reduced hereunder.

“Fixed Rate Facilities” means each of Facility 1, Facility 2, Facility 3, Facility 4 and
Facility 5 and “Fixed Rate Facility” means any of them.

“Fixed Rate Loans” means the Facility 1 Loan, the Facility 2 Loan, the Facility 3 Loan, the
Facility 4 Loan and the Facility 5 Loan and “Fixed Rate Loan” means any of them.

“Floating Rate Commitment” means:

	 	(a)	 	in relation to an Original Lender, at any time and save as otherwise provided
for herein, the amount allocated to its name in Schedule 1 (The Original Lenders) as
reduced by any assignments/transfers in accordance with this Agreement or as specified
in the relevant Transfer Certificate(s); and
	 
	 	(b)	 	in relation to any other Lender, the amount of any Commitment
assigned/transferred in accordance with this Agreement or as specified in the relevant
Transfer Certificate(s),

 

15

	 	 	to the extent not cancelled or reduced hereunder.
	 
	 	 	“Floating Rate Facilities” means each of Facility I, Facility II, Facility III, Facility IV
and Facility V and “Floating Rate Facility” means any of them.
	 
	 	 	“Floating Rate Loans” means the Facility I Loan, the Facility II Loan, the Facility III
Loan, the Facility IV Loan and the Facility V Loan and “Floating Rate Loan” means any of
them.
	 
	 	 	“Floating Rate Margin” means 0.55 per cent. per annum.
	 
	 	 	“German Process Agent” means First Solar Manufacturing GmbH, Marie-Curie-Strasse 3, 15236
Frankfurt (Oder).
	 
	 	 	“Hermes Guarantee” means the guarantee, in form and substance satisfactory to the Facility
Agent, issued or to be issued to the Lenders by the Federal Republic of Germany, represented
by the ECA-Guarantor, in respect of the Facilities covering 95 per cent. of the commercial
and political risk under this Agreement (upon the terms and conditions set forth in the
final guarantee confirmation (endgültige Indeckungsnahmeerklärung) and the finance credit
guarantee declaration (Finanzkreditgarantieerklärung) together with the general conditions
(Allgemeine Bedingungen – Garantien für gebundene Finanzkredite (FKG)).
	 
	 	 	“Increased Costs” has the meaning ascribed thereto in Clause 14.1 (Increased costs).
	 
	 	 	“IFRS” means the International Financial Reporting Standards formulated by the International
Accounting Standards Board.
	 
	 	 	“Insurance Proceeds” means any and all amounts payable in consequence of a claim under the
Insurances.
	 
	 	 	“Insurances” has the meaning ascribed thereto in Clause 20.1(n) (Insurance).
	 
	 	 	“Interest Payment Date” means in relation to a Loan the last day of each Interest Period.
	 
	 	 	“Interest Period” means, in relation to a Loan, each period determined in accordance with
Clause 4.1 (Interest Periods) and, in relation to any amount due and payable but unpaid by
the Borrower under the Finance Documents, each period determined in accordance with Clause
4.5 (Default Interest).
	 
	 	 	“Interest Rate” means the interest rate pursuant to Clause 5.1 (Fixed Interest Rate) or
pursuant to Clause 5.2 (Floating Interest Rate).
	 
	 	 	“Legal Advisors” means Clifford Chance Partnerschaftsgesellschaft, Frankfurt am Main,
Germany, Clifford Chance US LLP, New York, NY, USA, Chooi & Company, advocates &

 

16

	 	 	solicitors, Kuala Lumpur, Malaysia and Shumaker, Loop & Kendrick LLP, Toledo, Ohio, USA.
	 
	 	 	“Lender” means

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any financial institution (or other person) which has become a party hereto in
accordance with Clause 28.3 (Assignments and Transfers by Lenders),

	 	 	and which has not ceased to be a party hereto in accordance with the terms hereof.
	 
	 	 	“Loans” means each of the Fixed Rate Loans and the Floating Rate Loans and “Loan” means any
of them.
	 
	 	 	“Majority Lenders” means:

	 	(a)	 	before any Advances have been made, a Lender or Lenders whose Available
Commitments amount in aggregate to more than sixty-six and two thirds per cent. of the
Available Facilities; and
	 
	 	(b)	 	thereafter, a Lender or Lenders to whom in aggregate more than sixty-six and
two thirds per cent. of the Loans is (or, immediately prior to its final repayment, was
then) owed.

	 	 	“MASB” means the Malaysian Accounting Standards Board.
	 
	 	 	“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
assets, financial condition or results of operations of the Borrower which could be expected
to impair the Borrower’s ability to perform its obligations under this Agreement or (b) the
validity or enforceability of or the effectiveness, value or ranking of any security
interest granted or purported to the Finance Parties.
	 
	 	 	“Net Interest Expense” has the meaning ascribed thereto in Clause 19.1 (Financial
Definitions).
	 
	 	 	“Original Financial Statements” means the audited financial statements of the Borrower for
its Financial Year ended 31 December 2007.
	 
	 	 	“Original Fixed Rate Lender” means AKA Ausfuhrkredit-Gesellschaft mbH.
	 
	 	 	“Parties” means the parties to this Agreement.

 

17

	 	 	“Permitted Disposal” means:

	 	(a)	 	any disposal created in favour of the Lenders and/or the Security Agent
pursuant to any Security Document;
	 
	 	(b)	 	any disposal where the assets being disposed of are replaced by assets serving
a similar purpose and having a fair market value substantially equal to or greater than
the fair market value of the asset being disposed of;
	 
	 	(c)	 	any disposal made in relation to the Equipment for a consideration of less than
USD 15,000,000 (or its equivalent in any other currency) in aggregate per year;
	 
	 	(d)	 	any disposal made in the ordinary course of the Borrower’s business on a
commercial arm’s length basis; or
	 
	 	(e)	 	any disposal created with the prior written consent of the Majority Lenders.

	 	 	“Permitted Encumbrance” means:

	 	(a)	 	any Encumbrance created in favour of the Lenders and/or the Security Agent
pursuant to any Security Document;
	 
	 	(b)	 	retention of title clauses in suppliers’ standard terms and conditions of
business in respect of contracts entered into in the ordinary course of the Borrower’s
day to day business;
	 
	 	(c)	 	any lien arising by operation of law or in the ordinary course of the
Borrower’s business;
	 
	 	(d)	 	any lien for Taxes not yet due or which are being contested in good faith by
appropriate proceedings; or
	 
	 	(e)	 	any Encumbrance created with the prior written consent of the Majority Lenders.

	 	 	“PERS” means Private Entity Reporting Standards, being the official reporting standards
applicable to the Borrower.
	 
	 	 	“Potential Event of Default” means any of the events referred to in Clauses 21.1(a) (Payment
Obligations) and 21.1(c) (Covenants) to the extent it relates to the breach of a Financial
Covenant, which with the giving of notice, passage of time or fulfilment of any condition,
in each case as prescribed by the relevant aforementioned Clause (or any combination
thereof) would become an Event of Default.

 

 

18

	 	 	“Prepayment Notice” has the meaning ascribed thereto in Clause 9.2 (Prepayment).
	 
	 	 	“Project Documents” means:

	 	(a)	 	the Supply Contracts;
	 
	 	(b)	 	any purchase order entered into pursuant to the Supply Contracts;
	 
	 	(c)	 	any document which amends or varies any document referred to in paragraphs (a)
through (b) above; and
	 
	 	(d)	 	any other document designated as such by the Facility Agent and agreed by the
Borrower.

	 	 	“Project Information Memorandum” means the project information memorandum in relation to the
Project prepared by the management of the Borrower.
	 
	 	 	“Quotation Date” means with respect to any Interest Period in relation to an Advance made or
to be made in relation to a Floating Rate Facility, the day which is two (2) Business Days
prior to the commencement of such Interest Period.
	 
	 	 	“Ratio Calculation Date” means each date in respect of which the financial covenants
according to Clause 19 (Financial Covenants) are calculated and which is identical to the
end of each quarter of each Financial Year.
	 
	 	 	“Reference Banks” means Commerzbank Aktiengesellschaft, Frankfurt am Main, Deutsche Bank AG,
Frankfurt am Main, BNP Paribas S.A., Paris, Dresdner Bank Aktiengesellschaft, Frankfurt am
Main and Citigroup Inc., New York.
	 
	 	 	“Reference Rate” means the average of the percentage rates quoted by the Reference Banks as
their cost of funding for the relevant amount and for the relevant period from whatever
source each of them may reasonably select.
	 
	 	 	“Repayment Date” means in respect of each Facility each of the fourteen (14) semi-annual
payment dates referred to in Clause 8.1 (Repayment Instalments) beginning with the
respective First Repayment Date and in each case the Business Day falling six (6) months
thereafter as well as each subsequent date which is by its numbering equal to these dates in
any calendar year thereafter provided that if such date is not a Business Day, it shall be
deemed to be the immediately next Business Day in the same calendar month (if there is one)
or the preceding Business Day (if there is none).

 

19

	 	 	“Repayment Schedule” means a repayment schedule substantially in the form set out in
Schedule 10 (Form of Repayment Schedule) as updated from time to time by the Facility Agent
in accordance with this Agreement.
	 
	 	 	“Repeated Representations and Warranties” means each of the representations and warranties
referred to in Clause 17.2 (Repetition).
	 
	 	 	“Security” means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar effect.
	 
	 	 	“Security Charge over the Equipment” means the Malaysian law charge over all assets to be
delivered under the Supply Contracts dated on or about the date hereof between the Borrower
and the Security Agent.
	 
	 	 	“Security Documents” means:

	 	(a)	 	the Security Charge over the Equipment;
	 
	 	(b)	 	the Sponsor’s Guarantee;
	 
	 	(c)	 	any documents entered into pursuant to, or which amends or varies, any
documents referred to in paragraphs (a) and (b) above; and
	 
	 	(d)	 	any other document designated as such by the Facility Agent and agreed by the
Borrower.

	 	 	“Selection Notice” means a selection in writing from the Borrower to the Facility Agent of
an Interest Period for one or more Advances substantially in the form set out in Schedule 5
(Form of Selection Notice).
	 
	 	 	“Shareholders” means the direct shareholders of the Borrower, being at the date of this
Agreement First Solar FE Holdings Pte Ltd., a limited liability company formed under the
laws of Singapore.
	 
	 	 	“Shares” means the issued and voting share capital from time to time of the Borrower.
	 
	 	 	“Sponsor” means First Solar Inc., a corporation formed under the laws of the State of
Delaware having a principal place of business in Tempe, Arizona, United States of America.
	 
	 	 	“Sponsor’s Guarantee” means the first demand guarantee subject to New York State law dated
on or about the date hereof between the Sponsor and the Lenders including, but not limited
to, an undertaking to (i) pay on first written demand any amount necessary to discharge the
Borrower’s payment obligations outstanding under any of the Finance

 

20

	 	 	Documents from time to time in full, (ii) directly or indirectly own more than 50 per cent.
of the entire issued share capital of the Borrower, (iii) to keep direct or indirect control
over the Borrower and (iv) not to create or permit or subsist any security interest over any
of its shares in the Borrower.
	 
	 	 	“Starting Point I” means in respect of KLM I the date of readiness for operation as
confirmed by the Starting Point Confirmation I.
	 
	 	 	“Starting Point II” means in respect of KLM II the date of readiness for operation as
confirmed by the Starting Point Confirmation II.
	 
	 	 	“Starting Point III” means in respect of KLM III the date of readiness for operation as
confirmed by the Starting Point Confirmation III.
	 
	 	 	“Starting Point IV” means in respect of KLM IV the date of readiness for operation as
confirmed by the Starting Point Confirmation IV.
	 
	 	 	“Starting Points” means Starting Point I, Starting Point II, Starting Point III and Starting
Point IV and “Starting Point” means any of them.
	 
	 	 	“Starting Point Confirmation I” means the confirmation in writing by the Borrower to the
Facility Agent confirming the readiness of KLM I for operation in form and substance as
provided for in Schedule 9 (Form of Starting Point Confirmation).
	 
	 	 	“Starting Point Confirmation II” means the confirmation in writing by the Borrower to the
Facility Agent confirming the readiness of KLM II for operation in form and substance as
provided for in Schedule 9 (Form of Starting Point Confirmation).
	 
	 	 	“Starting Point Confirmation III” means the confirmation in writing by the Borrower to the
Facility Agent confirming the readiness of KLM III for operation in form and substance as
provided for in Schedule 9 (Form of Starting Point Confirmation).
	 
	 	 	“Starting Point Confirmation IV” means the confirmation in writing by the Borrower to the
Facility Agent confirming the readiness of KLM IV for operation in form and substance as
provided for in Schedule 9 (Form of Starting Point Confirmation).
	 
	 	 	“Starting Point Confirmations” means Starting Point Confirmation I, Starting Point
Confirmation II, Starting Point Confirmation III and Starting Point Confirmation IV and
“Starting Point Confirmation” means any of them.
	 
	 	 	“Status Confirmation” means each status confirmation in relation to the status of the
Project in the form set out in Schedule 8 (Form of Status Confirmation).

 

21

	 	 	“Subordination Agreement” means the subordination agreement dated on or about the date
hereof between the Borrower, the junior creditors referred to therein and the Facility
Agent.
	 
	 	 	“Subsidiary” means in relation to any partnership, company or corporation, a partnership,
company or corporation:

	 	(a)	 	which is controlled, directly or indirectly, by the first mentioned
partnership, company or corporation;
	 
	 	(b)	 	more than half of the issued share capital in which is beneficially owned,
directly or indirectly by the first mentioned partnership, company or corporation; or
	 
	 	(c)	 	which is a Subsidiary of another Subsidiary of the first mentioned partnership,
company or corporation,

	 	 	and for this purpose, a partnership, company or corporation shall be treated as being
controlled by another if that other partnership, company or corporation is able to direct
its affairs and/or to control the composition of its board of directors or equivalent body.
	 
	 	 	“Supplier” means [***].
	 
	 	 	“Supply Contract [***] Ia” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 25 January 2007 with regard to [***] relating to KLM I.
	 
	 	 	“Supply Contract [***] Ib” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 25 January 2007 with regard to [***] relating to KLM I.
	 
	 	 	“Supply Contract [***] I” means the equipment and purchase agreement entered into between
Exporter B and the Borrower dated 23 March 2007 with regard to [***] relating to KLM I.
	 
	 	 	“Supply Contract [***] IIa” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 25 January 2007 together with the relevant purchase order
dated 13 July 2007 with regard to [***] relating to KLM II.
	 
	 	 	“Supply Contract [***] IIb” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 25 January 2007 together with the relevant purchase order
dated 13 July 2007 with regard to [***] relating to KLM II.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

22

	 	 	“Supply Contract [***] II” means the equipment and purchase agreement entered into between
Exporter B and the Borrower dated 25 January 2008 with regard to [***] relating to KLM II.
	 
	 	 	“Supply Contract [***] IIIa” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 12 November 2007 with regard to [***] relating to KLM III.
	 
	 	 	“Supply Contract [***] IIIb” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 12 November 2007 with regard
to [***] relating to KLM III.
	 
	 	 	“Supply Contract [***] III” means the relevant provisions of the equipment and purchase
agreement entered into between Exporter B and the Borrower dated 25 January 2008 with regard
to [***] relating to KLM III, such agreement contained in the same deed as the Supply
Contract [***] IV.
	 
	 	 	“Supply Contract [***] IVa” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 12 November 2007 with regard to [***] relating to KLM IV.
	 
	 	 	“Supply Contract [***] IVb” means the equipment and purchase agreement entered into between
Exporter A and the Borrower dated 12 November 2007 with regard to [***] relating to KLM IV.
	 
	 	 	“Supply Contract [***] IV” means the relevant provisions of the equipment and purchase
agreement entered into between Exporter B and the Borrower dated 25 January 2008 with regard
to [***] relating to KLM IV, such agreement contained in the same deed as the Supply
Contract [***] III.
	 
	 	 	“Supply Contracts I” means Supply Contract [***] Ia, Supply Contract [***] Ib and Supply
Contract [***] I and “Supply Contract I” means any of them.
	 
	 	 	“Supply Contracts II” means Supply Contract [***] IIa, Supply Contract [***] IIb and Supply
Contract [***] II and “Supply Contract II” means any of them.
	 
	 	 	“Supply Contracts III” means Supply Contract [***] IIIa, Supply Contract [***] IIIb and
Supply Contract [***] III and “Supply Contract III” means any of them.
	 
	 	 	“Supply Contracts IV” means Supply Contract [***] IVa, Supply Contract [***] IVb and Supply
Contract [***] IV and “Supply Contract IV” means any of them.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE
BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

23

	 	 	“Supply Contracts” means Supply Contracts I, Supply Contracts II, Supply Contracts III and
Supply Contracts IV and “Supply Contract” means any of them.
	 
	 	 	“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
in any jurisdiction (including any penalty, fine or interest payable in connection with any
failure to pay or any delay in paying any of the same).
	 
	 	 	“Total Debt” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Total Equity” has the meaning ascribed thereto in Clause 19.1 (Financial Definitions).
	 
	 	 	“Transaction Documents” means the Finance Documents and the Project Documents.
	 
	 	 	“Transfer” has the meaning ascribed thereto in Clause 28.3(a) (Assignment and Transfers by
the Lenders).
	 
	 	 	“Transfer Certificate” means the transfer agreement referred to in Schedule 2 (Form of
Transfer Certificate).
	 
	 	 	“Transferee” means a person to which a Lender seeks to assign or transfer all or part of
such Lender’s rights, benefits and/or obligations under the Finance Documents (as more
specifically referred to in Clause 28.3(a) (Assignment and Transfers by the Lenders)).
	 
	 	 	“Transferor” has the meaning ascribed thereto in Clause 28.3(a) (Assignment and Transfers by
the Lenders).
	 
	 	 	“Ultimate First Repayment Date 1/I” means 30 September 2008.
	 
	 	 	“Ultimate First Repayment Date 2/II” means 31 March 2009.
	 
	 	 	“Ultimate First Repayment Date 3/III” means 30 September 2009.
	 
	 	 	“Ultimate First Repayment Date 4/IV” means 31 December 2009.
	 
	 	 	“Ultimate First Repayment Date 5/V” means 30 September 2008.
	 
	 	 	“Ultimate First Repayment Date” means any of the Ultimate First Repayment Date 1/I, the
Ultimate First Repayment Date 2/II, the Ultimate First Repayment Date 3/III, the Ultimate
First Repayment Date 4/IV and the Ultimate First Repayment Date 5/V.
	 
	 	 	“US GAAP” means the generally accepted accounting principles in the United States of America
consistent with those utilised in preparing the audited financial statement referred to in
Clause 18.1(c) (Audited Annual Accounts).

 

24

	 	 	“Utilisation” means the making of an Advance under a Facility.

	1.2	 	Interpretation

	 	 	Any reference in this Agreement to:
	 
	 	 	any “Lender”, the “Facility Agent”, the “Arranger”, the “Security Agent”, and any other
person shall be construed so as to include its and any subsequent successors and permitted
transferees in accordance with their respective interests;
	 
	 	 	any reference to “amend” includes an alteration, variation, supplement, accession, transfer,
novation, release, replacement or re-enactment and cognate expressions shall be construed
accordingly;
	 
	 	 	references to “assets” shall include all or any part of a person’s present or future
business, undertaking, property, assets, benefits, rights and revenues (and includes any
right to recover or receive any of the foregoing);
	 
	 	 	“continuing” in relation to an Event of Default, shall be construed as a reference to an
Event of Default which has not been waived in accordance with the terms hereof, and in
relation to a Potential Event of Default, one which has not been remedied within the
relevant grace period or waived in accordance with the terms hereof;
	 
	 	 	a “disposal” of any asset or obligation includes any sale, transfer, exchange, lease,
licence, lending-out, assignment, surrender, dispossession, set-off against or release
thereof and cognate expressions shall be construed accordingly;
	 
	 	 	“dividend” includes any payment or transfer (whether in cash, specie, kind or otherwise)
made by way of dividend, bonus, return on capital, repayment of capital contributions or
similar rights of equity distribution other than pursuant to a winding-up;
	 
	 	 	the “equivalent” on any date in one currency (the “first currency”) of an amount denominated
in another currency (the “second currency”) is a reference to the amount of the first
currency which could on a given date be purchased with the amount of the second currency at
the spot rate of exchange quoted in the relevant currency exchange market at or about 12.00
noon on such date for the purchase of the first currency with the second currency;
	 
	 	 	“indebtedness” shall be construed so as to include any obligation (whether incurred as
principal or as surety) for the payment or repayment of money, whether present or future,
actual or contingent;

 

25

	 	 	any reference to an account being “interest bearing” shall mean bearing such rate of
interest as may be agreed from time to time between the depositor and the depositee (to be
determined, where reasonably practicable, by reference to rates offered by such depositee to
customers of equivalent size and financial standing to that of the relevant depositor and by
reference to deposits of the same currency, of a similar size and of a similar maturity
period to that of the relevant deposited amount);
	 
	 	 	a “law” shall be construed as any law (including common or customary law), statute,
constitution, decree, judgment, treaty, regulation, directive, by-law, order or any other
legislative measure of any government, supranational, local government, statutory or
regulatory body or court;
	 
	 	 	a “month” is a reference to a period starting on one day in a calendar month and ending on
the numerically corresponding day in the next succeeding calendar month save that:

	 	(a)	 	if any such numerically corresponding day is not a Business Day, such period
shall end on the immediately succeeding Business Day to occur in that next succeeding
calendar month or, if none, it shall end on the immediately preceding Business Day; and
	 
	 	(b)	 	if there is no numerically corresponding day in that next succeeding calendar
month, that period shall end on the last Business Day in that next succeeding calendar
month,

	 	 	(and references to “months” shall be construed accordingly);
	 
	 	 	a “person” shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership (whether or not
having separate legal personality) of two or more of the foregoing;
	 
	 	 	“repay” (or any derivative form thereof) shall, subject to any contrary indication, be
construed to include “prepay” (or, as the case may be, the corresponding derivative form
thereof);
	 
	 	 	a “successor” shall be construed so as to include an assignee or successor in title of such
party and any person who under the laws of its jurisdiction of incorporation or domicile has
assumed the rights and obligations of such party under this Agreement or to which, under
such laws, such rights and obligations have been transferred;
	 
	 	 	“terminates” shall be construed to include where a person avoids, cancels, repudiates,
revokes, rescinds, suspends, terminates or withdraws a permission, document or contract or
any material part thereof;

 

26

	 	 	“VAT” shall be construed as a reference to value added tax including any similar tax which
may be imposed in place thereof from time to time; and
	 
	 	 	the “winding-up”, “dissolution” or “administration” of a company or corporation shall be
construed so as to include any equivalent or analogous proceedings under the law of the
jurisdiction in which such company or corporation is incorporated or any jurisdiction in
which such company or corporation carries on business including the seeking of liquidation,
winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection
or relief of debtors.

	1.3	 	Currency Symbols

	 	 	“€”, “EUR” and “euro” denote the single currency unit of the European Union as constituted
by the Treaty on European Union as referred to in EMU legislation and “USD” denotes the
currency unit of the United States of America.

	1.4	 	Agreements and Statutes

	 	 	Any reference in this Agreement to:

	 	(a)	 	this Agreement or any other agreement or document shall be construed as a
reference to this Agreement or, as the case may be, such other agreement or document as
the same may have been, or may from time to time be, amended in accordance with the
terms of such document and of this Agreement; and
	 
	 	(b)	 	a statute or treaty shall be construed as a reference to such statute or treaty
as the same may have been, or may from time to time be, amended or, in the case of a
statute, re-enacted.

	1.5	 	Headings
	 
	 	 	Clause and Schedule headings are for ease of reference only.

	1.6	 	Time
	 
	 	 	Any reference in this Agreement to a time of day shall, unless a contrary indication
appears, be a reference to German time (MET).
	 
	1.7	 	Plurals
	 
	 	 	Unless otherwise indicated herein, any reference to the plural includes the singular and any
reference to the singular includes the plural.
	 
	1.8	 	German Law Principle of Reasonableness/Good Faith (Treu und Glauben)
	 
	 	 	The Parties agree that the German statutory law principle of reasonableness/good faith (Treu
und Glauben) shall apply to this Agreement.

 

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	2.	 	THE FACILITIES
	 
	2.1	 	Grant of the Facilities
	 
	 	 	The Lenders grant to the Borrower, upon the terms and subject to the conditions hereof:

	 	(a)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,894,000 (the “Facility 1”);
	 
	 	(b)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,180,000 (the “Facility 2”);
	 
	 	(c)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,339,500 (the “Facility 3”);
	 
	 	(d)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,339,500 (the “Facility 4”), and
	 
	 	(e)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 1,227,000 (the “Facility 5”),
	 
	 	(f)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,894,000 (the “Facility I”);
	 
	 	(g)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,180,000 (the “Facility II”);
	 
	 	(h)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,339,500 (the “Facility III”);
	 
	 	(i)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 16,339,500 (the “Facility IV”), and
	 
	 	(j)	 	a euro denominated term loan facility in a maximum aggregate amount of up to
EUR 1,227,000 (the “Facility V”),

	 	 	in aggregate, however, not exceeding EUR 133,960,000.
	 
	2.2	 	Purpose and Application

	 	(a)	 	Each of the Facility 1 and the Facility I is exclusively intended to finance
the payment of:

	 	(i)	 	up to such 85% (percent) of Contract Value [***] Ia that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at

 

			
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28

	 	 	 	least 15% (percent) of Contract Value [***] Ia;
	 
	 	(ii)	 	up to such 85% (percent) of Contract Value [***] Ib that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] Ib; and
	 
	 	(iii)	 	up to such 85% (percent) of Contract Value [***] I that remain
payable to the Supplier by the Borrower after the Borrower has effected a
payment of at least 15% (percent) of Contract Value [***] I.

	 	(b)	 	Each of the Facility 2 and the Facility II is exclusively intended to finance
the payment of:

	 	(i)	 	up to such 85% (percent) of Contract Value [***] IIa that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] IIa;
	 
	 	(ii)	 	up to such 85% (percent) of Contract Value [***] IIb that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] IIb; and
	 
	 	(iii)	 	up to such 85% (percent) of Contract Value [***] II that remain
payable to the Supplier by the Borrower after the Borrower has effected a
payment of at least 15% (percent) of Contract Value [***] II.

	 	(c)	 	Each of the Facility 3 and the Facility III is exclusively intended to finance
the payment of:

	 	(i)	 	up to such 85% (percent) of Contract Value [***] IIIa that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] IIIa;
	 
	 	(ii)	 	up to such 85% (percent) of Contract Value [***] IIIb that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] IIIb; and
	 
	 	(iii)	 	up to such 85% (percent) of Contract Value [***] III that remain
payable to the Supplier by the Borrower after the Borrower has effected a
payment of at least 15% (percent) of Contract Value [***] III.

	 	(d)	 	Each of the Facility 4 and the Facility IV is exclusively intended to finance
the payment of:

 

			
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29

	 	(i)	 	up to such 85% (percent) of Contract Value [***] IVa that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of Contract Value [***] IVa;
	 
	 	(ii)	 	up to such 85% (percent) of Contract Value [***] IVb that remain
payable to Exporter A by the Borrower after the Borrower has effected a payment
of at least 15% (percent) of the Contract Value of the Supply Contract [***]
IVb; and
	 
	 	(iii)	 	up to such 85% (percent) of the Contract Value [***] IV that
remain payable to the Supplier by the Borrower after the Borrower has effected a
payment of at least 15% (percent) of Contract Value [***] IV.

	 	(e)	 	Each of the Facility 5 and the Facility V is exclusively intended to finance
the payment of up to 100 per cent. of the ECA-Fees.
	 
	 	(f)	 	All amounts granted under Clause 2.1 shall be applied in or towards
satisfaction of the Borrower’s financing requirements as set out above by making
Advances:

	 	(i)	 	under Facility 1 and Facility I to the Borrower for reimbursement
to the Borrower of amounts (other than the payment of at least 15% (percent) of
the Contract Value of the Supply Contracts I) due under the terms of the Supply
Contracts I or any of them and effected by the Borrower to Exporter A and/or the
Supplier in light of the Exporter B Assignment and/or Exporter B, as the case
may be, out of own funds of the Borrower;
	 
	 	(ii)	 	under Facility 2 and Facility II to the Borrower for
reimbursement to the Borrower of amounts (other than the payment of at least 15%
(percent) of the Contract Value of the Supply Contracts II) due under the terms
of the Supply Contracts II or any of them and effected by the Borrower to
Exporter A and/or the Supplier in light of the Exporter B Assignment and/or
Exporter B, as the case may be, out of own funds of the Borrower;
	 
	 	(iii)	 	under Facility 3 and Facility III to the Borrower for
reimbursement to the Borrower of amounts (other than the payment of at least 15%
(percent) of the Contract Value of the Supply Contracts III) due under the terms
of the Supply Contracts III or any of them and effected by the Borrower to
Exporter A and/or the Supplier in light of the Exporter B Assignment and/or
Exporter B, as the case may be, out of own funds of the Borrower;
	 
	 	(iv)	 	under Facility 4 and Facility IV to the Borrower for
reimbursement to the Borrower of amounts (other than the payment of at least 15%
(percent) of the

 

			
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30

	 	 	 	Contract Value of the Supply Contracts IV) due under the terms of the Supply
Contracts IV or any of them and effected by the Borrower to Exporter A and/or
the Supplier in light of the Exporter B Assignment and/or Exporter B, as the
case may be, out of own funds of the Borrower; and

	 	(v)	 	under Facility 5 and Facility V to the ECA-Guarantor on behalf of
the Borrower and the Borrower herewith authorises the Facility Agent, upon
receipt by the Facility Agent of (i) the relevant invoice issued by the
ECA-Guarantor and, (ii) the ECA-Fee Shortfall, if any, paid by the Borrower, to
pay the proceeds of any such Advance to the ECA-Guarantor.

	 	(g)	 	Notwithstanding that no drawdown request will be issued in respect of payments
to the ECA-Guarantor, the Borrower acknowledges and agrees that payments made by the
Lenders to the ECA-Guarantor pursuant to paragraph (f)(v) above constitute an Advance
under this Agreement whereby the Lenders discharge their respective obligations
pursuant to Clause 2.5 (Lenders’ Obligations Several) and that it is the sole obligor
thereof independent of any rights or obligations it may have under the Supply Contracts
or otherwise and the Borrower hereby authorises and instructs the Lenders to pay the
proceeds of each such Advance into the accounts designated for such purpose by the
ECA-Guarantor. The Facility Agent shall not later than at the date of an Advance made
pursuant to paragraph (f)(v) above provide the Borrower with a copy of the relevant
invoice issued by the ECA-Guarantor.

	2.3	 	Conditions Precedent

	 	(a)	 	Subject to subsection (b) of this Section 2.3, the Lenders shall not be obliged
to make an Advance under this Agreement unless the Facility Agent has confirmed to the
Borrower and the Lenders that it has received:

	 	(i)	 	with regard to the initial Drawdown Request under this Agreement,
all Conditions Precedent listed in Part I of Schedule 3 (Conditions Precedent);
	 
	 	(ii)	 	with regard to the first Drawdown Request in relation to each of
(a) Facility 1 and Facility I, (b) Facility 2 and Facility II, (c) Facility 3
and Facility III and (d) Facility 4 and Facility IV, all Conditions Precedent
listed in Part II of Schedule 3 (Conditions Precedent); and
	 
	 	(iii)	 	with regard to a Drawdown Request in relation to an Advance to
be made to finance the payment under a Supply Contract, all Conditions Precedent
listed in Part III of Schedule 3 (Conditions Precedent),

	 	 	 	each in form and substance satisfactory to the Facility Agent.

 

31

	 	(b)	 	If, at the request of the Borrower, any Condition Precedent referred to in
paragraph (a) above is waived or deferred by the Facility Agent (acting on the
instructions of the Majority Lenders) the Facility Agent may attach to such waiver or
deferral such requirements and further or other conditions as it may think fit (acting
on the instructions of the Majority Lenders) and, to the extent not further waived or
deferred by the Facility Agent (acting on the instructions of the Majority Lenders),
the Borrower shall fulfil or procure fulfilment of all such requirements and further or
other conditions as may be notified to the Borrower in writing in accordance with the
terms of such notification as if such requirement or further or other condition was an
obligation under this Agreement.

	2.4	 	Lenders’ Rights Several
	 
	 	 	The rights of each Lender are several and any debt arising hereunder at any time from the
Borrower to any of the other parties hereto shall be a separate and independent debt. Each
such party shall be entitled to protect and enforce its individual rights arising out of the
Finance Documents independently of any other party in accordance with the terms of the
Finance Documents (so that it shall not be necessary for any party hereto to be joined as an
additional party in any proceedings for this purpose).
	 
	2.5	 	Lenders’ Obligations Several
	 
	 	 	The obligations of each Lender are several and the failure by a Lender to perform its
obligations hereunder shall not affect the obligations of any party hereto towards any other
party hereto nor shall any other party be liable for the failure by such Lender to perform
its obligations hereunder.
	 
	3.	 	UTILISATION OF THE FACILITIES
	 
	3.1	 	General Conditions for all Advances
	 
	 	 	Without prejudice to the additional requirements set out in Clause 3.2 (Further Conditions
for Advances), it is a precondition to any Advance being made by the Lenders to the Borrower
that:

	 	(a)	 	the proposed Drawdown Date is a Business Day which is or precedes the
applicable Final Availability Date;
	 
	 	(b)	 	on and as of the proposed Drawdown Date (a) no Event of Default or Potential
Event of Default has occurred and is continuing (nor will any such event thereby occur
as a result of the making of such Advance as requested) and (b) the Repeated
Representations and Warranties are true in all respects; and

 

32

	 	(c)	 	no event has occurred which will or may result in the ECA-Guarantor (or any
agent thereof) refusing to allow disbursements to be made under this Agreement or
otherwise terminating the cover provided or to be issued by the Hermes Guarantee in
whole or part.

	3.2	 	Further Conditions for Advances

	 	(a)	 	An Advance:

	 	(i)	 	under Facility 1 will be only made simultaneously with and in an
equal amount as an Advance made under Facility I and vice versa;
	 
	 	(ii)	 	under Facility 2 will be only made simultaneously with and in an
equal amount as an Advance made under Facility II and vice versa;
	 
	 	(iii)	 	under Facility 3 will be only made simultaneously with and in an
equal amount as an Advance made under Facility III and vice versa;
	 
	 	(iv)	 	under Facility 4 will be only made simultaneously with and in an
equal amount as an Advance made under Facility IV and vice versa; and
	 
	 	(v)	 	under Facility 5 will be only made simultaneously with and in an
equal amount as an Advance made under Facility V and vice versa.

	 	(b)	 	Each Advance in accordance with Clauses 2.2(f)(i) through 2.2(f)(iv) will be
made by the Lenders to the Borrower if:

	 	(i)	 	by 10.00 a.m. not less than eight (8) Business Days before the
proposed Drawdown Date in respect of such Advance, the Facility Agent has
received a completed Drawdown Request from the Borrower; and
	 
	 	(ii)	 	the proposed amount of such Advance is either (a) (if less than
the respective Available Facility) an amount equal to at least EUR 1,000,000 or
(b) equal to the amount of the respective Available Facility.

	 	(c)	 	Each Advance in accordance with Clause 2.2(f)(v) will be made by the Lenders to
the ECA-Guarantor on behalf of the Borrower if for any Advance to be made to finance
the ECA-Fees the Facility Agent has received an invoice from the ECA-Guarantor.

	3.3	 	Each Lender’s Participation
	 
	 	 	Each Lender will participate through its Facility Office in each Advance made pursuant to
Clause 3.2 (Further Conditions for Advances) in the proportion borne by its relevant

 

33

	 	 	Available Commitments to the relevant Available Facilities immediately prior to the making
of that Advance.

	3.4	 	Reduction of Available Commitments
	 
	 	 	If a Lender’s Available Commitments are reduced in accordance with the terms hereof after
the Facility Agent has received a Drawdown Request for an Advance and such reduction was not
taken into account in the respective Available Facility, then the amount of that Advance
shall be reduced accordingly.
	 
	4.	 	INTEREST
	 
	4.1	 	Interest Periods
	 
	 	 	Each Interest Period (other than the first of each Loan, which shall begin on the day such
Loan is made) shall start on the last day of the Interest Period preceding such period.
	 
	4.2	 	Duration of Interest Periods relating to Fixed Rate Facilities

	 	(a)	 	Subject to this Clause 4.2, the Interest Period relating to Advances made under
a Fixed Rate Facility shall be six (6) months.
	 
	 	(b)	 	Any Interest Period relating to Advances made under the same Facility (other
than the Interest Period relating to the first Advance made under such Facility) shall
end on the last day of the Interest Period relating to the first Advance made under
such Facility.
	 
	 	(c)	 	Any Interest Period in relation to any Advance which would otherwise extend
beyond a Repayment Date shall end on such Repayment Date.
	 
	 	(d)	 	If an Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period will instead end on the next Business Day in that calendar month
(if there is one) or the preceding Business Day (if there is not).

	4.3	 	Duration of Interest Periods relating to Floating Rate Facilities

	 	(a)	 	Subject to this Clause 4.3, the Borrower may for Advances made under a Floating
Rate Facility select an Interest Period of three (3) or six (6) months in the Drawdown
Request for the relevant Advance or (if the relevant Advance has already been made) in
a Selection Notice.
	 
	 	(b)	 	Each Selection Notice for an Advance made under a Floating Rate Facility is
irrevocable and must be delivered to the Facility Agent by the Borrower not later

 

34

	 	 	 	than three (3) Business Days prior to the commencement of the next Interest Period in
relation to such Advance.
	 
	 	(c)	 	If the Borrower fails to deliver a Selection Notice to the Facility Agent in
accordance with paragraph (b) above, the relevant Interest Period will, subject to this
Clause 4.3 be three (3) months.
	 
	 	(d)	 	Any Interest Period relating to Advances made under the same Facility (other
than the Interest Period relating to the first Advance made under such Facility) shall
end on the last day of the Interest Period relating to the first Advance made under
such Facility.
	 
	 	(e)	 	Any Interest Period in relation to any Advance which would otherwise extend
beyond a Repayment Date shall end on such Repayment Date.
	 
	 	(f)	 	If an Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period will instead end on the next Business Day in that calendar month
(if there is one) or the preceding Business Day (if there is not).

	4.4	 	Consolidation of Advances
	 
	 	 	If two or more Interest Periods relating to Advances made under the same Facility end at the
same time, then, on the last day of those Interest Periods, those Advances will, unless (in
relation to an Advance made under a Floating Rate Facility) the Borrower specifies the
contrary in the Selection Notice for the next Interest Period, be treated as a single
Advance.
	 
	4.5	 	Default Interest

	 	(a)	 	If the Borrower fails to pay any amount (other than interest) payable by it
hereunder on its due date or following acceleration, interest will accrue on the
overdue amount from the due date up to the date of actual payment at a rate of 2 per
cent. per annum above:

	 	(i)	 	in relation to an amount becoming due and payable before
expiration of the Interest Period applicable thereto, for the period until the
expiration of such Interest Period the rate applicable to such overdue amount
immediately prior to the due date; and
	 
	 	(ii)	 	in all other cases, the rate which would have been payable if the
overdue amount had, during the period of non-payment, constituted a Loan for
successive Interest Periods, each of a duration selected by the Facility Agent.

 

35

	 	(b)	 	If the Borrower fails to pay any interest payable by it hereunder on its due
date, it will make, at the time of payment of all arrears of interest, a lump sum
payment for all arrears of interest in the amount of 2 per cent. above EURIBOR
applicable to the respective Interest Period of the amount due and payable. The right
of the Borrower to prove a lower loss of the Lenders remains unaffected.
	 
	 	(c)	 	The right of the Lenders to compensation for any loss arising from the default
remains unaffected. Payments made under Clause (b) will however be deducted from such
compensation.
	 
	 	(d)	 	The Facility Agent will promptly notify the Borrower and the Lenders of the
determination of any default interest. Each determination by the Facility Agent will,
in the absence of a manifest error, be conclusive and binding on the Borrower and the
Lenders.

	5.	 	INTEREST RATE AND PAYMENT OF INTEREST
	 
	5.1	 	Fixed Interest Rate
	 
	 	 	The rate of interest applicable to an Advance under the Fixed Rate Facilities from time to
time during an Interest Period shall be equal to the CIRR applicable on the date of signing
of this Agreement to loans denominated in EUR as notified by the Original Fixed Rate Lender
to the Borrower.

 

36

	5.2	 	Floating Interest Rate
	 
	 	 	The rate of interest applicable to an Advance under the Floating Rate Facilities from time
to time during an Interest Period is the percentage rate per annum which is the aggregate of
EURIBOR on the Quotation Date therefor and the Floating Rate Margin.
	 
	5.3	 	Payment of Interest
	 
	 	 	On each Interest Payment Date the Borrower shall pay accrued interest on the Advance to
which such Interest Period relates.
	 
	6.	 	MARKET DISRUPTION AND ALTERNATIVE INTEREST RATES
	 
	6.1	 	Market Disruption
	 
	 	 	If, in relation to any Advance made or to be made under a Floating Rate Facility:

	 	(a)	 	EURIBOR is to be determined by reference to Reference Banks and at or about 11
a.m. on the Quotation Date for the relevant Interest Period none or only one of the
Reference Banks supplies a rate for the purpose of determining EURIBOR for the relevant
Interest Period; or
	 
	 	(b)	 	before the close of business in Frankfurt am Main on the Quotation Date for the
relevant Interest Period the Facility Agent has been notified by one or more Lenders
that the EURIBOR rate does not accurately reflect the cost of funding its/their
participation in such Advance and such cost of funding exceeds the Reference Rate plus
30 basis points,

	 	 	then, the Facility Agent shall notify the other parties hereto of such event and,
notwithstanding anything to the contrary in this Agreement, Clause 6.2 (Substitute Interest
Period and Interest Rate) shall apply to such Advance.
	 
	6.2	 	Substitute Interest Period and Interest Rate
	 
	 	 	If sub-Clause 6.1(a) of Clause 6.1 (Market Disruption) applies to an Advance, the duration
of the relevant Interest Period shall be one (1) month or, if less, such that it shall end
on the next applicable succeeding Repayment Date. If either sub-Clause 6.1(a) or 6.1(b) of
Clause 6.1 (Market Disruption) applies to an Advance, the rate of interest applicable to
each Lender’s portion of such Advance during the relevant Interest Period shall (subject to
any agreement reached pursuant to Clause 6.3 (Alternative Interest Rate)) be the rate per
annum which is the sum of:

	 	(a)	 	the Floating Rate Margin; and

 

37

	 	(b)	 	the rate per annum notified to the Facility Agent by that Lender as soon as
practicable and in any event before interest is due to be paid in respect of that
Interest Period, to be that which expresses as a percentage rate per annum the cost
to that Lender of funding its participation in that Advance from whatever source it
may reasonably select whereby in case of Clause 6.1(b) (Market Disruption) such rate
shall not exceed the Reference Rate.

	6.3	 	Alternative Interest Rate
	 
	 	 	If (a) either of those events mentioned in sub-Clauses 6.1(a) and 6.1(b) of Clause 6.1
(Market Disruption) occurs in relation to an Advance or (b) by reason of circumstances
affecting the European interbank market during any period of three (3) consecutive Business
Days EURIBOR is not available to prime banks in the European interbank market, then if the
Facility Agent or the Borrower so requires, the Facility Agent and the Borrower shall enter
into negotiations with a view to agreeing a substitute basis (i) for determining the rates
of interest from time to time applicable to such Advances and/or (ii) upon which such
Advances may be maintained thereafter and any such substitute basis that is agreed shall
take effect in accordance with its terms and be binding on each party hereto, provided that
the Facility Agent may not agree any such substitute basis without the prior consent of each
Lender.
	 
	7.	 	NOTIFICATION
	 
	7.1	 	Advances
	 
	 	 	Not less than five (5) Business Days before the proposed day of an Utilisation, the Facility
Agent shall notify each Lender of the proposed amount of the relevant Advance and the
aggregate principal amount of the relevant Advance allocated to such Lender pursuant to
Clause 3.3 (Each Lender’s Participation).
	 
	7.2	 	Interest Rate Determination and Loan Amount
	 
	 	 	The Facility Agent shall promptly notify the Borrower and the Lenders of EURIBOR and the
Floating Rate Margin applicable from time to time and the Loans disbursed under any
Facility.
	 
	7.3	 	Changes to Interest Periods or Interest Rates
	 
	 	 	The Facility Agent shall promptly notify the Borrower and the Lenders of any change to the
proposed length of an Interest Period or any interest rate pursuant to Clause 4.2 (Duration
of Interest Periods relating to Fixed Rate Facilities) and Clause 6 (Market Disruption and
Alternative Interest Rates).

 

38

	8.	 	REPAYMENT
	 
	8.1	 	Repayment Instalments

	 	(a)	 	The Borrower shall repay the Facility 1 Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility 1 Loan borrowed by the Borrower as at
close of business on the Final Availability Date 1/I by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility 1 Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(b)	 	The Borrower shall repay the Facility 2 Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility 2 Loan borrowed by the Borrower as at
close of business on the Final Availability Date 2/II by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility 2 Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(c)	 	The Borrower shall repay the Facility 3 Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility 3 Loan borrowed by the Borrower as at
close of business on the Final Availability Date 3/III by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility 3 Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(d)	 	The Borrower shall repay the Facility 4 Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility 4 Loan borrowed by the Borrower as at
close of business on the Final Availability Date 4/IV by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility 4 Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(e)	 	The Borrower shall repay the Facility 5 Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility 5 Loan borrowed by the Borrower as at
close of business on the Final Availability Date 5/V by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility 5 Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(f)	 	The Borrower shall repay the Facility I Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility I Loan borrowed by the Borrower as at

 

39

	 	 	 	close of business on the Final Availability Date 1/I by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility I Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(g)	 	The Borrower shall repay the Facility II Loan in fourteen (14) semi-annual
equal consecutive instalments based on the Facility II Loan borrowed by the Borrower as
at close of business on the Final Availability Date 2/II by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility II Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(h)	 	The Borrower shall repay the Facility III Loan in fourteen (14) semi-annual
equal consecutive instalments based on the Facility III Loan borrowed by the Borrower
as at close of business on the Final Availability Date 3/III by repaying on each
relevant Repayment Date such an instalment. Without prejudice to the foregoing the
Borrower shall in any event repay the Facility III Loan and all interest thereon in
full on the relevant final Repayment Date.
	 
	 	(i)	 	The Borrower shall repay the Facility IV Loan in fourteen (14) semi-annual
equal consecutive instalments based on the Facility IV Loan borrowed by the Borrower as
at close of business on the Final Availability Date 4/IV by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility IV Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(j)	 	The Borrower shall repay the Facility V Loan in fourteen (14) semi-annual equal
consecutive instalments based on the Facility V Loan borrowed by the Borrower as at
close of business on the Final Availability Date 5/V by repaying on each relevant
Repayment Date such an instalment. Without prejudice to the foregoing the Borrower
shall in any event repay the Facility V Loan and all interest thereon in full on the
relevant final Repayment Date.
	 
	 	(k)	 	The Facility Agent shall in relation to each Facility not later than the
earlier of (i) ten (10) Business Days after the relevant Starting Point and (ii)
fifteen (15) Business Days prior to the relevant Ultimate First Repayment Date issue a
Repayment Schedule setting out the amount of the repayment instalments and the
Repayment Dates in relation to the relevant Facility in the form set out in Schedule 10
(Form of Repayment Schedule) which shall be updated from time to time by the Facility
Agent to reflect any prepayments made in accordance with Clauses 9 (Voluntary
Cancellation and Prepayments) and 10 (Mandatory Cancellation and Prepayments).

 

40

	 	(l)	 	If in relation to a KLM:

	 	(i)	 	the relevant Starting Point Confirmation has not been made
available to the Facility Agent prior to the Ultimate First Repayment Date;
	 
	 	(ii)	 	the Facility Agent consequently could not determine the relevant
Starting Point;
	 
	 	(iii)	 	repayment of the respective Facility consequently commenced on
the relevant Ultimate First Repayment Date;
	 
	 	(iv)	 	the Facility Agent subsequently received the relevant Starting
Point Confirmation or by other means and in its sole discretion has determined
the relevant Starting Point; and
	 
	 	(v)	 	the relevant Starting Point was a day that preceded the Ultimate
First Repayment Date by more than six (6) months

	 	 	 	then all remaining Repayment Dates of the relevant Facilities (starting with the
Repayment Date that prior to such adjustment would have fallen due not earlier than
five (5) Business Days from the date of determination of the relevant Starting Point
by the Facility Agent) shall be adjusted so that the Repayment Date of the relevant
Facilities to fall due next will be the day that is six (6) months (or such smallest
multiple of six (6) months that ensures that such Repayment Date falls not earlier
than five (5) Business Days from the relevant Starting Point) after the relevant
Starting Point and any further Repayment Date in relation to the relevant Facilities
falls six (6) months after the relevant previous Repayment Date.

	8.2	 	No Re-borrowing
	 
	 	 	No amount repaid under Clause 8.1 (Repayment Instalments) may be re-borrowed.
	 
	9.	 	VOLUNTARY CANCELLATION AND PREPAYMENTS
	 
	9.1	 	Voluntary Cancellation
	 
	 	 	The Borrower may, by giving to the Facility Agent not less than five (5) Business Days’
prior irrevocable notice to that effect, cancel the whole or any part of the Facilities
without any penalty. Any such cancellation of the Available Commitments shall reduce the
Available Commitments of the Lenders rateably.
	 
	9.2	 	Prepayment
	 
	 	 	At any time after the earlier of (i) the occurrence of the relevant Starting Point and (ii)
the issuance of the relevant Repayment Schedule by the Facility Agent pursuant to

 

41

	 	 	Clause 8.1(k) (Repayment Instalments) the Borrower may, after having given to the Facility
Agent not less than ten (10) Business Days’ prior irrevocable written notice to that effect
(the “Prepayment Notice”), prepay any part of the amount outstanding under any Facility on
the last day of an Interest Period relating to the relevant Advance, subject to a minimum
prepayment amount of EUR 1,000,000 or the total outstanding amount, whichever is smaller.
Voluntary prepayments under this Clause 9.2 will be applied in inverse chronological order
of maturity over the remaining repayment instalments and, in respect of the Facilities, as
directed by the Borrower in the Prepayment Notice, otherwise:

	 	(a)	 	firstly, pro rata regarding Facility 4 and Facility IV;
	 
	 	(b)	 	after repayment of Facility 4 and Facility IV in full, pro rata regarding
Facility 3 and Facility III; and
	 
	 	(c)	 	after repayment of Facility 3 and Facility III in full, pro rata regarding
Facility 2 and Facility II; and
	 
	 	(d)	 	after repayment of Facility 2 and Facility II in full, pro rata regarding
Facility 1 and Facility I; and
	 
	 	(e)	 	after repayment of Facility 1 and Facility I in full, pro rata regarding
Facility 5 and Facility V

	 	 	(and the obligations of the Borrower under Clause 8.1 (Repayment Instalments) shall be
satisfied pro tanto). For the avoidance of doubt any voluntary prepayment under this
Clause 9.2 shall be applied in inverse chronological order of maturity in case the Parties
consolidate the Loans into one single loan.

	9.3	 	Overpayment of ECA-Fee
	 
	 	 	The Facility Agent shall upon receipt of the final invoice issued by the ECA-Guarantor in
relation to the Project notify the Borrower about any overpayment of ECA-Fees made by the
Borrower. The Borrower may, after having given to the Facility Agent not less than ten (10)
Business Days’ prior a Prepayment Notice to that effect, apply such overpayment towards pro
rata prepayment of any part of the amount outstanding under Facility 5 and Facility V on the
last day of an Interest Period relating to such Facilities or request the Facility Agent to
refund such overpayment to an account, details of which are to be set out in the relevant
Prepayment Notice.
	 
	9.4	 	Scope of Prepayment
	 
	 	 	All prepayments will be made together with accrued interest on the amount prepaid and all
other amounts, if any, owing by the Borrower to the Lenders hereunder.

 

42

	9.5	 	Notices
	 
	 	 	Any notice of cancellation or Prepayment Notice given by the Borrower pursuant to this
Clause 9 is irrevocable and will specify the date upon which such cancellation or prepayment
is to be made and the amount of such cancellation or prepayment. The Facility Agent will
notify the Lenders promptly of receipt of any such notice.
	 
	9.6	 	No Other Voluntary Prepayments
	 
	 	 	To the extent legally permissible the Borrower will not voluntarily prepay all or any part
of any Loans except at the times and in the manner expressly provided for in this Agreement.
	 
	9.7	 	Re-Borrowing
	 
	 	 	The Borrower will not be entitled to re-borrow any amount prepaid under this Clause 9.
	 
	10.	 	MANDATORY CANCELLATION AND PREPAYMENTS
	 
	10.1	 	If, after the Hermes Guarantee has been issued by the ECA-Guarantor:

	 	(a)	 	the Hermes Guarantee is fully or partially withdrawn, suspended, terminated or
cancelled or otherwise ceases to be in full force and effect; or
	 
	 	(b)	 	the ECA-Guarantor repudiates the Hermes Guarantee or does or causes to be done
any act or thing evidencing in writing that it unequivocally intends to repudiate the
Hermes Guarantee issued by it, or any of the obligations of the ECA-Guarantor
thereunder are not or ceases to be legal, valid, binding or in full force and effect or
the ECA-Guarantor otherwise avoids, rescinds, or terminates in whole or in part the
Hermes Guarantee other than pursuant to its terms,

	 	 	the Facility Agent shall, if so directed by any of the Lenders, by notice to the Borrower,
cancel the Available Facilities attributable to the respective Lender directing the Facility
Agent to do so (whereupon it shall immediately be cancelled) and declare the Loans
attributable to the respective Lender directing the Facility Agent to do so, together with
accrued interest and all other amounts accrued or outstanding under the Finance Documents,
to be immediately due and payable (whereupon they shall become immediately due and payable)
unless the circumstances set out in paragraphs (a) and (b) above occurred by virtue of
wilful misconduct of the Facility Agent.

	10.2	 	The Borrower will not be entitled to re-borrow any amount prepaid under this Clause 10.
	 
	10.3	 	The undrawn Commitment of each Lender under a Facility will automatically be cancelled on the
relevant Final Availability Date for that Facility.

 

43

	11.	 	TAXES
	 
	11.1	 	Definitions:
	 
	 	 	“Qualifying Lender” means a Lender which is beneficially entitled to interest payable to the
Lender in respect of an advance under a Finance Document and which is:

	 	(a)	 	a Lender which is a Malaysian tax resident or which acts through a Malaysian
permanent establishment;
	 
	 	(b)	 	in receipt of an exemption issued by the Malaysian Ministry of Finance whereby
the Malaysian Minister of Finance had exempted that Lender’s interest income received
or receivable under the Finance Documents from income tax (withholding tax) pursuant to
section 127 (3A) of the Malaysian Income Tax Act 1967 (as amended from time to time) at
any time when it becomes a Lender; or
	 
	 	(c)	 	a Lender which is entitled to receive interest payments without any Tax
Deductions in Malaysia at any time when it becomes a Lender;

	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment
under a Finance Document.
	 
	 	 	“Tax Payment” means either the increase in a payment made by the Borrower to a Finance Party
under Clause 11.2 (Tax Gross-up) or payment under Clause 11.3 (Tax Indemnity).

	11.2	 	Tax Gross-up

	 	(a)	 	Unless required by law, all payments to be made by the Borrower to any Lender,
the Facility Agent or the Security Agent under the Finance Documents shall be made free
and clear of and without any Tax Deduction.
	 
	 	(b)	 	In the event that any Tax Deduction is required by law, the Borrower will pay
such additional amounts as will result in the receipt by such Lender, the Facility
Agent, or the Security Agent of the net amounts after such Tax Deduction equal to the
amounts it would otherwise have received had no such Tax Deduction been required to be
made by law.
	 
	 	(c)	 	The Borrower is not required to make an increased payment to a Lender under
paragraph (b) above, if on the date on which that payment falls due

 

44

	 	(i)	 	the payment could have been made to the relevant Lender without a
Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not
or has ceased to be a Qualifying Lender other than as a result of a change after
the date of this Agreement or, in case of a Lender which has become Party to
this Agreement after the date of this Agreement, the date on which it became a
Lender, in (or in the interpretation, administration or application of) any law
or treaty, or any generally applying published practice or concession of any
relevant taxing authority; or
	 
	 	(ii)	 	the relevant Lender is a Qualifying Lender and the Borrower is
able to demonstrate that the payment could have been made to that Lender without
the Tax Deduction had that Lender complied with its obligations under paragraph
(d) below.

	 	(d)	 	A Qualifying Lender and the Borrower shall co-operate in completing any
procedural formalities necessary for the Borrower to obtain authorisation to make a
payment without a Tax Deduction.

	11.3	 	Tax Indemnity

	 	(a)	 	Without prejudice to Clause 11.2 (Tax Gross-up), if any Finance Party is
required to make any payment of or on account of Tax on or in relation to any sum
received or receivable under the Finance Documents the Borrower shall, upon written
demand of the Facility Agent, within three (3) Business Days of receiving such written
demand, indemnify such Finance Party accordingly, together with any interest,
penalties, costs and expenses payable or incurred in connection therewith.
	 
	 	(b)	 	Paragraph (a) above shall not apply:

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

	 	(A)	 	under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for
tax purposes;
	 
	 	(B)	 	under the law of the jurisdiction in which that
Finance Party’s Facility Office is located, or, if different, the
jurisdiction in which that Finance Party’s Facility Office is treated as
resident for tax purposes, in respect of amounts received or receivable
in that jurisdiction

	 	 	 	if that Tax is imposed on or calculated by reference to the income received
or receivable by that Finance Party; or

 

45

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

	 	(A)	 	is compensated for by an increased payment under
Clause 11.2 (Tax Gross-up); or
	 
	 	(B)	 	would have been compensated for by an increased
payment under clause 11.2 (Tax Gross-up) but was not so compensated
solely because one of the exclusions in clause 11.2(c) (Tax Gross-up)
applied.

	 	(c)	 	Further, without prejudice to Clause 11.2 (Tax Gross-up) the Borrower shall pay
and, within five (5) Business Days of demand, indemnify any Lender, the Facility Agent
or the Security Agent against any cost, loss or liability any Lender, Facility Agent or
Security Agent may incur in relation to stamp duty, other similar transfer tax or
notary fees in connection with the Finance Documents.

	11.4	 	Tax Credits
	 
	 	 	If the Borrower makes a Tax Payment and the relevant Finance Party determines in its
discretion (acting reasonably) that

	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that Tax
Payment forms part, or to that Tax Payment; and
	 
	 	(b)	 	the Lender has obtained, utilised and retained that Tax Credit (directly or on
an affiliated group basis),

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

	11.5	 	Claims by Lenders
	 
	 	 	A Lender intending to make a claim pursuant to Clause 11.3 (Tax Indemnity) shall notify the
Facility Agent of the event giving rise to the claim within sixty (60) Business Days of the
occurrence of such event, whereupon the Facility Agent shall notify the Borrower within 10
Business Days of receipt of such notification.

 

46

	11.6	 	Change of Tax Law or Tax Regulations
	 
	 	 	Each Party shall, as soon as it becomes aware of it, inform the Facility Agent of any
details of any change of tax law or tax regulations in Malaysia or the United States of
America, which might have an impact on the Project.
	 
	12.	 	VAT
	 
	12.1	 	All consideration expressed to be payable under a Finance Document by any Party to a Finance
Party shall be deemed to be exclusive of any VAT. If VAT is chargeable on any supply made by
any Finance Party to any Party in connection with a Finance Document, that Party shall pay to
that Finance Party (upon provision of a proper VAT invoice at the time specified in such
invoice) in addition to the consideration for that supply an amount equal to the amount of the
VAT if the reverse charge mechanism is not applicable and such VAT does not result from the
election for a VAT option right.
	 
	12.2	 	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or
expenses, that Party shall also at the same time pay and indemnify that Finance Party against
all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that
the Finance Party determines that it is not entitled to credit or repayment from the relevant
Tax Authority in respect of the VAT.
	 
	12.3	 	Where pursuant to the terms of this Agreement one Finance Party makes a supply to another
Finance Party, and VAT is chargeable on such supply, each Party paying the consideration for
such supply shall also pay (in addition to and at the same time as paying the consideration
for that supply upon provision of a proper VAT invoice) an amount equal to the amount of the
VAT if the supply is not subject to the reverse charge mechanism and such VAT does not result
from the election for a VAT option right.
	 
	13.	 	TAX RECEIPTS
	 
	13.1	 	Notification of Requirement to Deduct Tax
	 
	 	 	If, at any time, the Borrower is required by law to make a Tax Deduction (or if thereafter
there is any change in the rates at which or the manner in which such Tax Deductions are
calculated), the Borrower shall promptly notify the Facility Agent within 10 Business Days
after it becomes aware of such requirement or change.
	 
	13.2	 	Evidence of Payment of Tax
	 
	 	 	If the Borrower makes any payment under the Finance Documents in respect of which it is
required to make any Tax Deduction, it shall pay the full amount required to be deducted or
withheld to the relevant taxation or other authority within the time allowed for such
payment under applicable law and shall deliver to the Facility Agent for each Lender, within
thirty

 

47

	 	 	days after it has made such payment to the applicable authority, an original receipt (or a
certified copy thereof) issued by such authority evidencing the payment to such authority of
all amounts so required to be deducted or withheld in respect of that Lender’s share of such
payment.
	 
	14.	 	INCREASED COSTS
	 
	14.1	 	Increased costs

	 	(a)	 	Subject to Clause 14.3 (Exceptions) the Borrower shall, for any Interest Period
beginning after the day on which the Facility Agent has notified the Borrower in
accordance with Clause 14.2(a) (Increased cost claims), pay for the account of a
Finance Party the amount of any Increased Costs incurred by that Finance Party or any
of its affiliated companies as a result of (i) the introduction of or any change in (or
in the interpretation, administration or application of) any law or regulation or (ii)
compliance with any law or regulation made after the date of this Agreement. The amount
of Increased Costs shall become due and payable within five (5) Business Days of a
demand by the Facility Agent.
	 
	 	(b)	 	In this Agreement “Increased Costs” means:

	 	(i)	 	a reduction in the rate of return from the Facilities or on a
Finance Party’s or its head office’s overall capital;
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance
Document,

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

	14.2	 	Increased cost claims

	 	(a)	 	A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased
costs) shall notify the Facility Agent of the event giving rise to the claim, following
which the Facility Agent shall promptly notify the Borrower.
	 
	 	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Facility
Agent, provide a certificate confirming the amount of its Increased Costs and setting
out the calculation of the amount in reasonable detail.

 

48

	14.3	 	Exceptions

	 	(a)	 	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost
is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by the
Borrower;
	 
	 	(ii)	 	compensated for by Clause 11.3 (Tax indemnity) (or would have
been compensated for under Clause 11.3 (Tax indemnity) but was not so
compensated solely because any of the exclusions in Clause 11.3(b) (Tax
indemnity) applied);
	 
	 	(iii)	 	attributable to the wilful or gross negligent breach by the
relevant Finance Party or its affiliated companies of any law or regulation; or
	 
	 	(iv)	 	attributable to the implementation or application of or
compliance with the “International Convergence of Capital Measurement and
Capital Standards, a Revised Framework” published by the Basel Committee on
Banking Supervision in June 2004 in the form existing on the date of this
Agreement (“Basel II”) or any other law or regulation which implements Basel II
(whether such implementation, application or compliance is by a government,
regulator Finance Party or any of its affiliated companies).

	 	(b)	 	In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning
given to the term in Clause 11.1 (Definitions).

	15.	 	ILLEGALITY
	 
	 	 	If, at any time, after the signing of this Agreement it has become unlawful in any
applicable jurisdiction for a Lender to make, fund or allow to remain outstanding all or
part of its share of the Advances, then that Lender shall, promptly after becoming aware of
the same, deliver to the Borrower through the Facility Agent a notice to that effect and:

	 	(a)	 	such Lender shall not thereafter be obliged to participate in the making of any
Advances and the amount of its Available Commitments shall be immediately reduced to
zero; and
	 
	 	(b)	 	if the relevant law and the Facility Agent on behalf of such Lender so
requires, the Borrower shall repay such Lender’s share of any outstanding Advances on
the last day of the Interest Period after the Facility Agent has notified the Borrower,
or on such date as the Facility Agent shall have specified (which must not be earlier
than the last day of any applicable grace period permitted by the relevant law)
together

 

49

	 	 	 	with accrued interest thereon and all other amounts owing to such Lender under the
Finance Documents and any repayment so made shall reduce rateably the remaining
obligations of the Borrower under Clause 8 (Repayment).

	16.	 	MITIGATION
	 
	16.1	 	If, in respect of any Lender, circumstances arise which would or would upon the giving of
notice result in:

	 	(a)	 	an increase in any sum payable to it or for its account pursuant to Clause 11.2
(Tax Gross-up);
	 
	 	(b)	 	a claim for indemnification pursuant to Clause 11.3 (Tax Indemnity) or
Clause 14 (Increased Costs); or
	 
	 	(c)	 	the reduction of its Available Commitments to zero or any repayment to be made
by the Borrower pursuant to Clause 15 (Illegality),

	 	 	then, without in any way limiting, reducing or otherwise qualifying the rights of such
Lender or the obligations of the Borrower under any of the Clauses referred to above, such
Lender shall promptly upon becoming aware of such circumstances notify the Facility Agent
thereof and, in consultation with the Facility Agent and the Borrower and to the extent that
it can do so lawfully and without prejudice to its own position, take steps (including a
change of location of its Facility Office or the transfer of its rights, benefits and
obligations under the Finance Documents to another financial institution acceptable to the
Borrower and willing to participate in the Facility) to mitigate the effects of such
circumstances, provided that such Lender shall be under no obligation to take any such
action if, in the bona fide opinion of such Lender, to do so might have any adverse effect
upon its business or operations or banking and lending policies (other than any minor costs
and expenses of an administrative nature).

	16.2	 	In the context of Clause 16.1 above the Borrower shall also be entitled to prepay the Loan in
accordance with Clause 9.2 (Prepayment), provided, however, that the Borrower does not need to
comply with the minimum prepayment amount stipulated therein.
	 
	17.	 	REPRESENTATIONS AND WARRANTIES
	 
	17.1	 	Representations and Warranties
	 
	 	 	As of the day of execution of this Agreement, the Borrower represents and warrants by way of
an independent guarantee (unabhängiges Garantieversprechen) to each of the Arranger, the
Facility Agent, the Security Agent and the Lenders that:

 

50

	 	(a)	 	Status: it is a company limited by shares duly organised and validly existing
under the laws of Malaysia, has the capacity to sue and be sued in its own name and has
the corporate power and authority to own its assets and to carry on its business as
currently conducted;
	 
	 	(b)	 	Powers and Authority: it has the corporate power and authority to enter into
and perform its obligations under the Transaction Documents and has taken all necessary
corporate and other action required to authorise the execution, delivery and
performance of the Transaction Documents;
	 
	 	(c)	 	Non-Conflict: it complies with and the entry into and the execution and
performance of the Transaction Documents by the Borrower do not and will not conflict:

	 	(i)	 	with any agreement, mortgage, bond or other instrument or treaty
to which it is a party or which is binding upon it or any of its assets which
could be expected to have a Material Adverse Effect;
	 
	 	(ii)	 	with its constitutive documents; or
	 
	 	(iii)	 	with any applicable law, including environmental and tax laws,
in a manner which could be expected to have a Material Adverse Effect;

	 	(d)	 	Authorisations: all material Authorisations required to be obtained or renewed
by the time this representation is made or is repeated have been so obtained or renewed
and each of such Authorisations is in full force and effect, the Borrower has complied
and is at all times in compliance with the terms and conditions of each material
Authorisation and has not received any indication and is not aware of any facts or
circumstances which might result in any material Authorisation being suspended,
revoked, amended, varied, withdrawn or not renewed and so far as the Borrower is aware
no material Authorisation will be suspended, revoked, amended, varied, withdrawn or not
renewed as a result of the execution or performance of any of the Transaction Documents
or a document to be executed pursuant thereto;
	 
	 	(e)	 	Further Authorisations: having made due inquiry, it knows of no reason why any
material Authorisation required for the Project or the performance of its obligations
under the Transaction Documents (i) will not be granted when applied for or requested,
or (ii) will be terminated, suspended, withdrawn (zurückgenommen) or revoked
(widerrufen);
	 
	 	(f)	 	No Material Adverse Effect: there has been no Material Adverse Effect;

 

51

	 	(g)	 	No Material Proceedings: no litigation, action or administrative proceeding of
or before any court, arbitrator or agency (including, but not limited to, investigative
proceedings) is commenced against the Borrower or its assets which, if adversely
determined, would be expected to have a Material Adverse Effect;
	 
	 	(h)	 	No labour unrest: it knows of no labour unrest pending and no labour unrest has
commenced which, if so pending and commencing respectively would be expected to have a
Material Adverse Effect;
	 
	 	(i)	 	Project Documents: (i) all Project Documents (in relation to the KLM to be
financed by the relevant Facility, where applicable) are or will be in full force and
effect at the time of each drawdown under Facilities, and (ii) the Borrower is in
compliance with all Project Documents in all material aspects;
	 
	 	(j)	 	Project Information Memorandum: the Project Information Memorandum including
the documents incorporated by reference therein as provided to the Facility Agent to
forward to the ECA-Guarantor and the Lenders is complete, true and correct in all
material aspects as of the date of such Project Information Memorandum and all
projections contained therein were judged or prepared in good faith and on the basis of
fair assumptions as of the date of such Project Information Memorandum (it being
understood that projections as to future events are not to be viewed as facts and are
subject to significant uncertainties and contingencies, many of which are beyond the
Borrower’s control, and that no assurance can be given that any particular projections
will be realized, and that actual results may differ and such differences may be
material).
	 
	 	(k)	 	Environmental Compliance: it has duly performed and observed in all respects
all Environmental Law, Environmental Permits and all other covenants, conditions,
restrictions or agreements including in connection with any contamination, pollution,
emissions, waste, release or discharge of any toxic or hazardous substance where
failure to do so could be expected to have a Material Adverse Effect.

	17.2	 	Repetition
	 
	 	 	Each of the representations and warranties pursuant to Clause 17.1 (Representations and
Warranties) will be repeated by the Borrower on each Drawdown Date by reference to the facts
and circumstances existing on such Drawdown Date.

 

52

	18.	 	FINANCIAL INFORMATION
	 
	 	 	The Borrower makes the covenants in this Clause 18 from the date of this Agreement until the
date on which all amounts of principal, interest, fees, costs, expenses, commission and all
other amounts due or which may become due hereunder have been paid or repaid.
	 
	18.1	 	Audited Annual Accounts

	 	(a)	 	The Borrower shall as soon as the same becomes available, but in any event
within 180 days after the end of each of its Financial Years, deliver to the Facility
Agent its annual financial statements prepared in accordance with IFRS or US GAAP
(commencing with such financial statements for the Financial Year ending 31 December
2007), certified by an Authorised Signatory of the Borrower as giving a true and fair
view of its financial condition as at the end of such Financial Year and of the results
of its operations during such Financial Year.
	 
	 	(b)	 	The Borrower shall as soon as the same becomes available, but in any event
within 180 days after the end of each of its Financial Years, deliver to the Facility
Agent its annual financial statements prepared in accordance with MASB approved
accounting standards and PERS (and audited by the Auditor) (commencing with such
financial statements for the Financial Year ending 31 December 2007).
	 
	 	(c)	 	The Borrower shall as soon as the same becomes available, but in any event
within 180 days after the end of each Financial Year of the Sponsor, deliver to the
Facility Agent the annual financial statements prepared in accordance with IFRS or US
GAAP (and audited by the Auditor) of the Sponsor (commencing with such financial
statements for the Financial Year ending 31 December 2007).

	18.2	 	Quarterly Statements and Compliance Certificates
	 
	 	 	The Borrower shall as soon as the same become available but in any event within 60 days
after the end of each quarter of its Financial Year deliver to the Facility Agent its
unaudited financial statements prepared in accordance with IFRS or US GAAP for such period
(commencing with such financial statements for such quarter ending 31 March 2008), certified
by an Authorised Signatory of the Borrower as giving a true and fair view of its financial
condition as at the end of the period to which those financial statements relate and of the
results of its operations during such period, and a Compliance Certificate signed by an
Authorised Signatory of the Borrower together with evidence of its accounts, financial
statements and calculations as required to confirm the accuracy of the Compliance
Certificate. All projections and assumptions used for the purposes of the Compliance
Certificate shall be fair and reasonable.

 

53

	18.3	 	Status Confirmations
	 
	 	 	The Borrower shall within 45 days after the end of each calendar quarter prior to Starting
Point IV deliver to the Facility Agent a Status Confirmation signed by an Authorised
Signatory of the Borrower.
	 
	18.4	 	Budget
	 
	 	 	The Borrower shall not later than sixty (60) days after the end of its Financial Year
provide the Facility Agent a Budget for the new Financial Year, the first time in respect of
the Financial Year 2009.
	 
	18.5	 	Financial Year
	 
	 	 	The Borrower shall inform the Facility Agent promptly about a change of the end of the
Financial Year of the Borrower and/or the Sponsor.
	 
	18.6	 	Other Information
	 
	 	 	The Borrower shall from time to time on the request of the Facility Agent, furnish to the
Lenders through the Facility Agent such information about the financial condition of the
Borrower as the Lenders may reasonably request.
	 
	18.7	 	Accounting Policies
	 
	 	 	The Borrower shall ensure that each set of financial statements delivered pursuant to this
Clause 18 is prepared in the English language using accounting policies, practices,
procedures and reference period consistent with IFRS, US GAAP or MASB approved accounting
standards and PERS, as relevant, and, in relation to any such financial statement, the
Borrower shall notify the Facility Agent if there have been one or more changes in any
accounting policy, practice, procedure or reference period and the Borrower shall procure
that in respect of the financial statements provided pursuant to Clause 18.1(b), the
Borrower’s Auditor provides:

	 	(a)	 	a description of the changes and the adjustments which would be required to be
made to those financial statements in order to cause them to use the accounting
policies, practices, procedures and reference period upon which the Original Financial
Statements were prepared; and
	 
	 	(b)	 	sufficient information, in such detail and format as may be required by the
Facility Agent, to enable the Lenders to make an accurate comparison between the
financial position indicated by those financial statements and the Original Financial
Statements,

 

54

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

	19.	 	FINANCIAL COVENANTS
	 
	19.1	 	Financial Definitions
	 
	 	 	In this Clause 19:
	 
	 	 	“Annualised Debt Service” means the Debt Service during the preceding twelve months.
	 
	 	 	“Annualised DSCR” means the DSCR during the preceding twelve months.
	 
	 	 	“Annualised EBITDA” means the EBITDA during the preceding twelve months.
	 
	 	 	“Annualised Net Interest Expense” means the Net Interest Expense during the preceding twelve
months.
	 
	 	 	“CAFDS” means the EBITDA for any preceding twelve months:

	 	(a)	 	after deducting any amount of tax on profits, gains, income in respect of cash
payments or cash payable;
	 
	 	(b)	 	after taking into account all increases and decreases respectively of accruals;
	 
	 	(c)	 	after taking into account all increases and decreases respectively of
liabilities resulting from deliveries of goods and services;
	 
	 	(d)	 	after taking into account all increases and decreases respectively of
liabilities against members of the First Solar Group;
	 
	 	(e)	 	after taking into account all increases and decreases respectively of
receivables resulting from deliveries of goods and services;
	 
	 	(f)	 	after taking into account all increases and decreases respectively of
receivables against members of the First Solar Group;
	 
	 	(g)	 	after taking into account all increases and decreases respectively of the
inventories, raw materials and supplies, work-in-process and finished product, advance
payments and prepaid expenses; and
	 
	 	(h)	 	after taking into account all increases and decreases respectively of the
Capital Expenditures.

 

55

	 	 	“Capital Expenditure” means any expenditure (including any reinvestment of disposal proceeds
but excluding any replacement of assets out of insurance proceeds) or obligations in respect
of expenditure (including any obligation in respect of the capital element of any finance
lease, operating lease or capital lease) for the acquisition of equipment, fixed assets,
real property, intangible assets and other assets of a capital nature, or for the
replacements or substitutions therefore or additions or improvements thereto in each case
which would be consistent with the Borrower’s accounting policies and in line with US GAAP,
together with costs incurred in connection therewith.
	 
	 	 	“Debt Service” means in respect of the Borrower any due and payable fees, Net Interest
Expense and repayments of principal in respect of any loan granted to the Borrower but in
respect of shareholder loans only amounts of principal and interest actually paid.
	 
	 	 	“DSCR” means the ratio of CAFDS to Annualised Debt Service.
	 
	 	 	“EBITDA” means the Borrower’s net results plus interest expenses minus interest income plus
taxes plus depreciation plus amortization (excluding in each case extraordinary items) plus
cash injections during any cure period/grace period of a Financial Covenant.
	 
	 	 	“Net Interest Expense” means in respect of the Borrower all interest due and payable (other
than interest due and payable but not actually paid under any loan granted by another member
of the First Solar Group to the Borrower) minus all interest earned.
	 
	 	 	“Total Debt” means, in respect of any financial year, all moneys borrowed (including debt
incurred under any bill of exchange) of the Borrower plus (to the extent not already
included under moneys borrowed):

	 	(a)	 	the amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;
	 
	 	(b)	 	the amount incurred by acceptance of any certificate of indebtedness;
	 
	 	(c)	 	the amount of any mezzanine capital of the Borrower;
	 
	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract;
	 
	 	(e)	 	the amount of any trade liability with a remaining period of one (1) year and
more;
	 
	 	(f)	 	the amount of any liability of the Borrower against another member of the First
Solar Group with a remaining period of one (1) year and more; and

 

56

	 	(g)	 	the amount of any subordinated shareholder loan granted to the Borrower
(excluding the amount of any shareholder loan granted to cure a breach of any covenant
under this Clause 19).

	 	 	“Total Equity” means, in respect of any financial year, the paid-in capital, ordinary share
capital or subscribed capital of the Borrower:

	 	(a)	 	plus capital reserves;
	 
	 	(b)	 	after taking into account any retained earnings and accumulated deficits;
	 
	 	(c)	 	after taking into account any net income and net loss;
	 
	 	(d)	 	minus any receivables against shareholders;
	 
	 	(e)	 	plus any liabilities towards shareholders if subordinated to the claims of the
Finance Parties against the Borrower under the Finance Documents; and
	 
	 	(f)	 	plus any subordinated shareholder debt.

	19.2	 	Financial Condition
	 
	 	 	The Borrower shall:

	 	(a)	 	Total Debt to Equity Ratio: ensure that at the end of each quarter of each
Financial Year the ratio of Total Debt to Total Equity is not higher than:

	 	(i)	 	100 per cent. at the end of the Financial Year 2009 to be
calculated the first time at the end of the Financial Year 2009; and
	 
	 	(ii)	 	75 per cent. thereafter.

	 	(b)	 	Total Leverage Ratio: ensure that at the end of each quarter of each Financial
Year the ratio of Total Debt to Annualised EBITDA is not above 4.5 in its Financial
Year 2009 and thereafter, to be calculated the first time at the end of the Financial
Year 2009.
	 
	 	(c)	 	Interest Coverage Ratio: ensure that at the end of each quarter of each
Financial Year the ratio of Annualised EBITDA to Annualised Net Interest Expense is not
less than 4.0 to be calculated the first time at the end of the Financial Year 2009.
	 
	 	(d)	 	Debt Service Coverage Ratio: ensure that at the end of each quarter of each
Financial Year the Annualised DSCR is not less than:

 

57

	 	(i)	 	1.1 in its Financial Year 2009 to be calculated the first time at
the end of the Financial Year 2009; and
	 
	 	(ii)	 	2.5 therafter.

	19.3	 	No Event of Default
	 
	 	 	The Borrower may cure a breach of any covenant under this Clause 19 within twenty (20)
Business Days from the earlier of (i) the Borrower becoming aware of such breach and (ii)
notification by the Facility Agent of such breach by procuring the provision of further
equity or shareholder loans subordinated in accordance with the terms of the Subordination
Agreement to the Borrower. Upon provision of such further equity and subordinated loans
respectively the ratios set out in this Clause 19 will be recalculated taking into account
such further equity and subordinated loans respectively. Where any such breach of a covenant
under this Clause 19 is cured in accordance with this paragraph no Event of Default will
arise as a consequence of that breach.
	 
	20.	 	COVENANTS
	 
	20.1	 	Positive Covenants
	 
	 	 	The Borrower shall:

	 	(a)	 	Maintenance of Legal Validity and Legal Status: (i) do all things necessary to
maintain its existence as a legal person and to ensure the legality, validity,
enforceability or admissibility in evidence in Malaysia of the Transaction Documents
including the obtaining and maintaining of all applicable Authorisations necessary for
the Project and the performance of its obligations under the Transaction Documents, as
and when required, and, (ii) on request of the Facility Agent, shall supply copies
(certified by an Authorised Signatory of the Borrower as true, complete and up to date)
of any such Authorisations and (iii) comply with all applicable laws and
Authorisations, except a failure to comply with this Clause 20.1(a)(i) and (iii) would
not reasonably be expected to have a Material Adverse Effect;
	 
	 	(b)	 	Applicable social, health and safety guidelines: comply in all material
respects with all applicable social, health and safety guidelines except where a
failure to comply with this covenant would not be expected to have a Material Adverse
Effect;
	 
	 	(c)	 	Notification of Events of Default and Material Adverse Effect: promptly inform
the Facility Agent of the occurrence of any Event of Default, Potential Event of
Default or Material Adverse Effect of which it is aware and, upon receipt of a written
request to that effect from the Facility Agent, confirm to the Facility Agent that,
save as

 

58

	 	 	 	previously notified to the Facility Agent or as notified in such confirmation, no
Event of Default, Potential Event of Default or Material Adverse Effect has occurred
of which it is aware;
	 
	 	(d)	 	Transaction Documents: enter into, maintain in full force and effect, perform
all its obligations under, and otherwise comply in all material respects with all
Transaction Documents;
	 
	 	(e)	 	Project Documents: promptly provide details of any cancellation, termination,
change or waiver under any of the Project Documents which might have a material impact
on the Project in particular, but not limited to, cancellations, terminations, changes
or waivers of the terms of payment, the delivery dates and/or the specifications of the
Equipment contained in any Project Document;
	 
	 	(f)	 	Shipping Documents: promptly upon receipt thereof provide a photocopy of each
bill of lading (Konnossement) issued under any Supply Contract;
	 
	 	(g)	 	Information to ECA-Guarantor: allow the Facility Agent to give information to
the ECA-Guarantor regarding the Borrower, the Project and in connection with the
Transaction Documents;
	 
	 	(h)	 	ECA-Fee Shortfall: pay to the Facility Agent on its first written demand (auf
erstes Anfordern) any ECA-Fee Shortfall to be forwarded by the Facility Agent to the
ECA-Guarantor together with the relevant proceeds of the relevant Facility in order to
meet the payment obligations in relation to the ECA-Fee as invoiced by the
ECA-Guarantor in any invoice in relation to a Facility;
	 
	 	(i)	 	Inspection: allow the Facility Agent, Security Agent and the Lenders to inspect
the Project and the books and records of the Borrower at any reasonable time during
normal business hours and with at least seven (7) days prior notification thereof;
	 
	 	(j)	 	Claims Pari-Passu: ensure that at all times the claims of the Lenders against
it under the Finance Documents rank at least pari passu with the claims of all its
unsecured and unsubordinated creditors;
	 
	 	(k)	 	No Immunity: waive any immunity from suit or enforcement;
	 
	 	(l)	 	Environmental Compliance: comply in all material respects with all
Environmental Laws and obtain and maintain any Environmental Permits and notify the
Facility Agent, promptly after a responsible officer becomes aware of the same of:

	 	(i)	 	any Environmental Claim made on it or to any occupier of any
property

 

59

	 		 	owned or leased by it under any Environmental Law which may affect the
compliance with this Agreement; and
	 
	 	(ii)	 	any circumstances which arise whereby any material remedial
action is likely to be required to be taken by, or at the expense of, it
pursuant to any Environmental Law;

	 	(m)	 	Notification of Litigation etc.: promptly provide the details of each
litigation, arbitration or administrative proceedings which are current, and, to the
best of its knowledge, threatened or pending against the Borrower with an amount in
dispute of more than USD 10,000,000 (or its equivalent in any other currency);
	 
	 	(n)	 	Insurance: keep and maintain effective and in full force adequate insurance
policies for building risk and property insurance in respect of the Project (the
“Insurances”) with insurers with international reputation, pay the premium in time and
ensure that the insurance company accepts the Facility Agent as a loss payee in such
way that insurance proceeds have to be disbursed to the Facility Agent after an Event
of Default has occurred or is continuing and promptly upon reasonable request provide
to the Facility Agent copies of all cover notes and policies (including endorsements)
issued from time to time in relation to each insurance, and of all changes requested or
effected thereto;
	 
	 	(o)	 	Financial Statements: prepare its financial statements in accordance with IFRS
or US GAAP;

	20.2	 	Negative Covenants
	 
	 	 	The Borrower shall not (by action or omission) without the prior written consent of the
Facility Agent which shall not be unreasonably withheld or delayed:

	 	(a)	 	Negative Pledge: create or permit to subsist any Encumbrance over the Equipment
or parts thereof other than any Permitted Encumbrance;
	 
	 	(b)	 	Disposals: sell, lease, transfer or otherwise dispose of the whole or any part
of the Equipment other than by way of a Permitted Disposal;
	 
	 	(c)	 	Loans: make loans to any person other than:

	 	(i)	 	to members of the First Solar Group;
	 
	 	(ii)	 	to officers and employees in each case not exceeding USD
1,000,000 (or its equivalent in any other currency) per officer and employee
respectively;

 

60

	 	(iii)	 	not falling under any other paragraph of this covenant and which
does not exceed USD 20,000,000 (or its equivalent in any other currency) in
aggregate outstanding at any time; and
	 
	 	(iv)	 	in the ordinary course of business.

	 	(d)	 	Guarantees: guarantee the satisfaction of obligations of any person other than:

	 	(i)	 	officers and employees if the guarantee in each case does not
exceed USD 1,000,000 (or its equivalent in any other currency) per officer and
employee respectively;
	 
	 	(ii)	 	obligations to local utilities and/or governmental agencies if
such guarantee is requested by utilities and/or governmental agencies as
standard business practice; and
	 
	 	(iii)	 	guarantees not falling under the above paragraphs (i) and (ii)
of this covenant and which do not exceed USD 20,000,000 (or its equivalent in
any other currency) in aggregate outstanding at any time.

	 	(e)	 	Change of Business: make any changes to the general nature of its business or
carry on any other business which results in any change to the general nature of such
business;
	 
	 	(f)	 	Merger or Consolidation: enter into any amalgamation, merger, demerger or
consolidation, or undertake any corporate or financial restructuring except for within
the First Solar Group or if the Borrower is the surviving entity, provided, however,
the Borrower provides the Facility Agent not later than ten (10) Business Days prior to
such amalgamation, merger or consolidation with an updated Budget taking into account
such amalgamation, merger or consolidation and containing a detailed calculation of
forecasts in relation to all Financial Covenants for the twelve (12) months following
the date of such Budget showing that such Financial Covenants will not be breached as a
result of such amalgamation, merger or consolidation;
	 
	 	(g)	 	Illegal Payment: offer, give, receive or solicit any illegal payment or
improper advantage to any person in connection with the Project;
	 
	 	(h)	 	Contracts with members of First Solar Group: enter into any contract with other
members of the First Solar Group otherwise than on terms no less favourable to the
Borrower than arm’s length terms and in the ordinary course of business.

 

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	21.	 	EVENTS OF DEFAULT
	 
	21.1	 	Each of the following circumstances constitutes an Event of Default for the purpose of this
Agreement, irrespective of whether or not caused by any reason within the control of the
Borrower or any other person, is voluntary or involuntary or arises or is effected by
operation of applicable law. Each Event of Default may be relied upon by the Facility Agent
and the Lenders severally and independently from any other Event of Default:

	 	(a)	 	Payment Obligations: failure by the Borrower to make:

	 	(i)	 	any payment of principal or interest due under and in accordance
with this Agreement within five (5) Business Days from the due date thereof;
and/or
	 
	 	(ii)	 	any other payment due under the Finance Documents within five (5)
Business Days from a notification by the Facility Agent of the Borrower’s
failure to pay;

	 	(b)	 	Representations and Warranties etc: any representation, warranty or statement
made by the Borrower or the Sponsor in or pursuant to any Transaction Document, the
Hermes Guarantee, any certificate, statement or opinion delivered by or on behalf of
the Borrower or the Sponsor hereunder or in connection herewith is or proves to have
been incorrect, untrue or misleading in a material respect when made or delivered,
unless the circumstances giving rise to the misrepresentation are capable of remedy and
remedied within fifteen (15) Business Days from the earlier of (i) the Borrower
becoming aware of the misrepresentation and (ii) notification by the Facility Agent of
such misrepresentation;
	 
	 	(c)	 	Covenants: subject to Clause 19.3 (No Event of Default) the Borrower or the
Sponsor breaches any covenant or obligation under any Transaction Document (other than
Clause 20.1(c) (Notification of Events of Default and Material Adverse Effect) in
respect of a Potential Event of Default) or the Hermes Guarantee which, if capable of
being remedied, has not been remedied to the satisfaction of the Facility Agent and/or,
in relation to the Security Charge over the Equipment, of the Security Agent within
fifteen (15) Business Days from the earlier of (i) the Borrower becoming aware of such
breach, (ii) notification by the Facility Agent and/or, in relation to the Security
Charge over the Equipment, of the Security Agent of such breach, and (iii) any such
document is terminated (otherwise than by reason of full performance in accordance with
its terms);
	 
	 	(d)	 	Insolvency and Rescheduling: any cause exists on the basis of which insolvency
or bankruptcy proceedings under any applicable law could be initiated against the

 

62

	 	 	 	Borrower or the Sponsor or any of their assets or the Borrower or the Sponsor
commences negotiations with any one or more of its creditors with a view to the
general readjustment or rescheduling of its indebtedness or makes a composition with
its creditors;
	 
	 	(e)	 	Winding-up: the Borrower or the Sponsor takes any corporate action or any other
steps are taken or legal proceedings are started for its winding-up, dissolution,
liquidation or reorganisation or other relief with respect to it or its debts or for
the appointment of a liquidator, receiver, administrator, administrative receiver,
conservator, custodian, trustee or similar officer of it or of any part or all of its
assets;
	 
	 	(f)	 	Indebtedness:

	 	(i)	 	any Financial Indebtedness of the Borrower is not paid when due
(nor within any originally applicable grace periods) or is declared to be or
otherwise becomes due and payable prior to its specified maturity (or within any
originally applicable grace periods) as a result of an event of default (however
described) unless such Financial Indebtedness is contested in good faith and
reserved for; or
	 
	 	(ii)	 	any creditor of the Borrower has declared any Financial
Indebtedness of the Borrower due and payable prior to its specified maturity
(after the expiry of any originally applicable grace periods) as a result of an
event of default (howsoever described); or
	 
	 	(iii)	 	any security (other than under a Security Document) securing
Financial Indebtedness over any asset of the Borrower become enforceable for the
amount of such Financial Indebtedness,

	 	 	 	provided that no Event of Default will occur under Clauses (f) (i) to (iii) as
applicable unless the aggregate amount of any such Financial Indebtedness under the
relevant sub-clause is USD 5,000,000 (or its equivalent in any other currency) or
more;

	 	(g)	 	Change of Control: the Sponsor ceases to:

	 	(i)	 	own (directly or indirectly) more than 50 per cent. of the entire
issued share capital of the Borrower; or
	 
	 	(ii)	 	control (directly or indirectly) the Borrower.

 

63

	 	(h)	 	Invalid, Non-binding and Non-enforceable Obligations: a provision of the
Finance Documents is not legal, valid, binding and enforceable subject, however, to any
general principles of law and qualifications as to matters of law set out in any legal
opinion to be delivered to the Facility Agent pursuant to Clause 2.3(a)(i) (Conditions
Precedent);
	 
	 	(i)	 	Security: any material security pursuant to the Security Documents has not been
provided on the due date or ceases to be in full force and effect;
	 
	 	(j)	 	Sponsor’s Guarantee: any event of default under the Sponsor’s Guarantee;
	 
	 	(k)	 	Material Adverse Effect: any other event or circumstance (or series of events
or circumstances) occurs that has a Material Adverse Effect, subject, however, to
general principles of law and qualifications as to matters of law set out in any legal
opinion to be delivered to the Facility Agent pursuant to Clause 2.3(a)(i) (Conditions
Precedent) unless the Facility Agent is satisfied that the Sponsor will perform under
the Sponsor’s Guarantee and such performance is capable to remedy such Material Adverse
Effect.

	21.2	 	Acceleration and Cancellation
	 
	 	 	Upon the occurrence of an Event of Default and at any time thereafter while such Event of
Default is continuing, the Facility Agent may and shall upon the direction of the Majority
Lenders by notice to the Borrower:

	 	(a)	 	declare all or any part of the Advances to be immediately due and payable or
declare all or any part of the Advances to be due and payable on its demand (whereupon
the same will become so payable together with accrued interest thereon and any other
sums then owed by the Borrower under the Finance Documents); and/or
	 
	 	(b)	 	declare that any unutilised portion of the Facility will be cancelled,
whereupon the Lenders’ undrawn Commitments shall be cancelled and each Lender’s undrawn
Commitment will be reduced to zero, provided that, notwithstanding the foregoing, upon
the occurrence of an Event of Default specified in Clauses 21.1(d) (Insolvency and
Rescheduling) and 21.1(e) (Winding Up), the undrawn Commitments of each Lender will
immediately be reduced to zero and all Advances and other sums then owed by the
Borrower hereunder shall become immediately due and payable; and/or
	 
	 	(c)	 	exercise all rights and remedies under any Finance Document or instruct the
Security Agent to do so; and/or
	 
	 	(d)	 	to exercise the rights of the Lenders in relation to the Hermes Guarantee or
any security in accordance with the Security Documents.

 

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	21.3	 	Advances Due on Demand

	 	 	 	If, pursuant to Clause 21.2(a), the Facility Agent declares all or any part of the Advances
to be due and payable on demand of the Facility Agent, then, and at any time thereafter the
Facility Agent may by notice to the Borrower:

	 	(a)	 	require repayment of all or such part of the Facility on such date as it may
specify in such notice (whereupon the same will become due and payable on the date
specified together with accrued interest thereon and any other sums then owed by the
Borrower under the Finance Documents); and/or
	 
	 	(b)	 	select as the duration of any Interest Period which begins whilst such
declaration remains in effect a period of six months or less.

	21.4	 	Participation of the ECA-Guarantor

	 	 	 	Upon becoming aware of the occurrence of an Event of Default in accordance with the terms of
this Agreement, the Facility Agent will promptly inform the ECA-Guarantor thereof.

	22.	 	FEES

	22.1	 	Underwriting Fee for the Floating Rate Facilities

	 	(a)	 	The Borrower shall pay to the Facility Agent an underwriting fee as a one time
fee of 0.5 per cent. of the aggregate amount of, as at the date of the Facility
Agreement, the Floating Rate Facilities for the account of the Lender granting such
Floating Rate Facilities.
	 
	 	(b)	 	The underwriting fee for the Floating Rate Facilities pursuant to paragraph (a)
above shall be due and payable on the date of the first Utilisation into an account to
be specified by the Facility Agent to the Borrower in writing.

	22.2	 	Management Fee for the Fixed Rate Facilities

	 	(a)	 	The Borrower shall pay to the Facility Agent (for the account of the Lender
granting the Fixed Rate Facilities) a management fee as a one time fee of 0.25 per
cent. of the aggregate amount of, as at the date of this Agreement, the Fixed Rate
Facilities.
	 
	 	(b)	 	The management fee for the Fixed Rate Facilities pursuant to paragraph (a)
above shall be due and payable on the date of the first Utilisation into an account to
be specified by the Facility Agent to the Borrower in writing.

 

 

65

	22.3	 	Commitment Fee

	 	 	 	The Borrower shall pay to the Facility Agent (for the account of each Lender) a commitment
fee on the amount of

	 	(a)	 	such Lender’s Available Fixed Rate Commitment from day to day during the
relevant Availability Period, such commitment fee to be calculated at the rate of 0.375
per cent. per annum, and
	 
	 	(b)	 	such Lender’s Available Floating Rate Commitment from day to day during the
relevant Availability Period, such commitment fee to be calculated at the rate of 0.35
per cent. per annum,

	 	 	 	such commitment fee being payable in EUR in arrear on the last day of each calendar quarter
during the relevant Availability Period and on the relevant Final Availability Date.

	22.4	 	Agency Fee

	 	 	 	The Borrower shall pay to the Facility Agent (for the account of the Agent) an annual fee in
the amount of EUR 20,000 for the administration of the Facilities and related matters due
and payable each year on 30 June into an account to be specified by the Facility Agent to
the Borrower in writing.

	22.5	 	Security Agency Fee

	 	 	 	The Borrower shall pay to the Security Agent (for the account of the Security Agent) an
annual fee in the amount of EUR 10,000 for the administration of the Security granted under
the Security Documents and related matters due and payable each year on 30 June into an
account to be specified by the Security Agent to the Borrower in writing.

	22.6	 	Payments

	 	 	 	All payments to be made by the Borrower to any of the Finance Parties under this Clause 22
(Fees):

	 	(a)	 	shall be paid in immediately available, freely transferable, cleared funds;
	 
	 	(b)	 	shall be paid in Euro; and
	 
	 	(c)	 	are exclusive of any VAT. If VAT is chargeable in respect of any of the fees
payable under this Clause 22 (Fees), the Borrower shall, at the same time as such
payment is due and payable, pay any applicable VAT.

 

 

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	23.	 	COSTS AND EXPENSES

	23.1	 	Transaction Expenses

	 	 	 	The Borrower shall, from time to time on demand of the Facility Agent or the Security Agent,
reimburse each of the Facility Agent, the Security Agent and the Arranger for all expenses
(including fees of any Advisor) together with any VAT thereon incurred by it in connection
with the negotiation, preparation and execution of the Finance Documents and the Exporter B
Assignment, and the completion of the transactions contemplated in each case therein
provided that any such expenses are within the limits agreed in writing between the Arranger
and the Borrower prior to the making of any such expenses.

	23.2	 	Preservation and Enforcement of Rights

	 	 	 	The Borrower shall, from time to time on demand of the Facility Agent, reimburse the
Facility Agent, the Security Agent and the Lenders for all costs and expenses (including
legal fees) on a full indemnity basis together with any VAT thereon incurred in or in
connection with the preservation and/or enforcement of any of the rights of such parties
under the Finance Documents (including, without limitation, any costs and expenses relating
to any investigation as to whether or not an Event of Default has occurred or any steps
necessary or desirable in connection with any proposal for remedying or otherwise resolving
an Event of Default). However, to the extent a legal opinion is obtained by the Facility
Agent in respect of Authorisations (other than the legal opinion referred to in item 18 of
Schedule 3, Part I), the Borrower shall only be obliged to reimburse the Facility Agent for
any costs incurred in connection with such legal opinion if the legal opinion stipulates
that the respective Authorisation is invalid. If such legal opinion confirms the validity of
the respective Authorisation, the Borrower is not obliged to reimburse the Facility Agent.

	23.3	 	Stamp Taxes

	 	 	 	The Borrower shall pay all stamp, registration and other taxes to which the Finance
Documents, any other document referred to in the Finance Documents or any judgment given in
connection therewith is or at any time may be subject and shall, from time to time on demand
of the Facility Agent, indemnify the Lenders against any liabilities, costs, claims and
expenses resulting from any failure to pay or any delay in paying any such tax.

	23.4	 	Amendment Costs

	 	 	 	If the Borrower requests any amendment, waiver or consent then the Borrower shall, within
ten (10) Business Days of demand by the Facility Agent, reimburse the Facility Agent, the
Security Agent and the Lenders for all costs and expenses (including legal fees) together
with any VAT thereon incurred by such person in responding to or complying with such
request.

 

 

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	23.5	 	Translation Costs

	 	 	 	The Borrower shall, within ten (10) Business Days of demand by the Facility Agent, reimburse
the Facility Agent, the Security Agent and the Lenders for all costs and expenses (including
such costs and expenses of a legal adviser) together with any VAT thereon incurred by the
Facility Agent, the Security Agent or any Lender by reason of such person having to have
translated into English, Malay or German, as the case may be, any notice or other
communication made or delivered under this Agreement or any other documents required to be
delivered under or in connection with this Agreement or any other Transaction Document which
is not in English, Malay or German, as the case may be or otherwise already accompanied by a
relevant certified translation into English, Malay or German, as the case may be.

	23.6	 	Reimbursement of VAT

	 	 	 	The Borrower shall only be obliged to reimburse any VAT payable in accordance with Clauses
23.1 (Transaction Expenses) to 23.5 (Translation Costs) if the respective Party entitled to
reimbursement thereunder confirms that it is not legally entitled to deduct input tax
(Vorsteuerabzugsberechtigung) in respect of the amounts to be reimbursed.

	23.7	 	Lenders’ Liabilities for Costs

	 	 	 	If the Borrower fails to perform any of its obligations under this Clause 23 (Costs and
Expenses), each Lender shall, in the proportion borne by its share of the Loans (or, if no
Advances have been made, its Available Commitments) to the amount of the Loans (or, if no
Advances have been made, the Available Facilities) for the time being (or, if the Loans have
been repaid in full, immediately prior to the final repayment thereof), indemnify each of
the Facility Agent and the Security Agent against any loss incurred by any of them as a
result of such failure.

	24.	 	INDEMNITY AND BREAK COSTS

	24.1	 	Indemnities

	 	 	 	The Borrower undertakes to indemnify each of the Lenders, the Facility Agent and the
Security Agent, except where any such costs, loss, expense or liability results from a
Lender’s, the Facility Agent’s or the Security Agent’s gross negligence or wilful
misconduct, against any cost, claim, loss, expense (including legal fees) or liability
together with any VAT thereon, which it may sustain or incur as a consequence of the
occurrence of any Event of Default or any default by the Borrower and/or the Sponsor in the
performance of any of the obligations expressed to be assumed by it in any of the
Transaction Documents.

 

 

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	24.2	 	Break Costs

	 	 	 	If:

	 	(a)	 	in relation to any Floating Rate Facility any payment or (voluntary or
mandatory) prepayment is made otherwise than on the last day of an Interest Period
applicable thereto; or
	 
	 	(b)	 	in relation to all Facilities any other payment is made otherwise than on the
due date therefore; or
	 
	 	(c)	 	a Fixed Rate Loan is prepaid in full or in part in accordance with Clause 9.2
(Prepayment), Clause 10.1 and/or Clause 16.2 above; or
	 
	 	(d)	 	in relation to all Facilities any Advance requested is not made (other than by
reason of default or negligence by a Finance Party);

	 	 	 	then the Borrower will, except such payment or prepayment results from the application of
Clause 15 (Illegality) pay to the Facility Agent for the account of each Lender to which
such payment is made or who participated in the Advance requested, in respect of a Floating
Rate Facility its Floating Rate Facility Break Costs and in respect of a Fixed Rate Facility
its Fixed Rate Facility Break Costs.
	 
	 	 	 	“Floating Rate Facility Break Costs” means the amount (if any) by which:

	 	(a)	 	the amount of interest which a Lender would have received (excluding Floating
Rate Margin) for the period from the date of receipt of any part of the Floating Rate
Loan or an overdue amount to the last day of the applicable Interest Period for the
Floating Rate Loan or overdue amount if the principal or overdue amount received had
been paid on the last day of that Interest Period;

	 	 	 	exceeds
	 
	 	 	 	the amount of interest which the Lender would be able to obtain by placing an amount
equal to the amount received by it on deposit with a bank operating in the European
Union (selected by that Lender) which has short term unsecured debt instruments in
issue with a rating of F1(+) (or better) by Fitch, P-1 (or better) by Moody’s or
A-1(+) (or better) by S&P for period starting on the Business Day following receipt
and ending on the last day of the current Interest Period.

	 	 	 	“Fixed Rate Facility Break Costs” means, as of the date of receipt of a repayment or
prepayment by the Lender providing the Fixed Rate Facilities, the amount of the present
value of the difference between

 

 

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	 	(a)	 	the amount of interest which a Lender would have earned on the amount received
for the period from the date of receipt until the remaining term of the relevant Fixed
Rate Loan if the prepayment had not been made; and
	 
	 	(b)	 	the amount of interest which the Lender would be able to obtain by investing an
amount equal to the amount received by it for the remaining term of the relevant Fixed
Rate Loan at the ICAPEURO rate as displayed by Reuters,

	 	 	 	in each case as calculated by the Lender and notified to the Borrowers.

	25.	 	PAYMENTS

	25.1	 	Notification of Payments

	 	 	 	Without prejudice to the liability of each party hereto promptly to pay each amount owing by
it hereunder on the due date therefore, whenever a payment is expected to be made by any of
the parties hereto, the Facility Agent shall, at least two (2) Business Days prior to the
expected date for such payment, notify all the parties hereto of the amount, currency and
timing of such payment and the identity of the party liable to make such payment and issue
invoices in relation to such payments if requested, for example, for VAT purposes.

	25.2	 	Payments to the Facility Agent

	 	(a)	 	On each date on which this Agreement requires an amount to be paid by the
Borrower or a Lender and the Borrower or, as the case may be, such Lender shall make
the same available to the Facility Agent for value on the due date at such time and in
such funds and to such account with such bank as the Facility Agent shall specify from
time to time.
	 
	 	(b)	 	Unless otherwise permitted, all payments required to be made by the Borrower to
the Lenders under any Finance Document will be made in euro to the Facility Agent on
the due date therefore not later than 10:00 a.m.. If a payment is due on a day which is
not a Business Day, the due date for that payment will instead be the immediately next
Business Day in the same calendar month (if there is one) or the preceding Business Day
(if there is none).

	25.3	 	Distributions by the Facility Agent

	 	(a)	 	Save as otherwise provided herein, each payment received by the Facility Agent
pursuant to Clause 25.2 (Payments to the Facility Agent) shall be made available by the
Facility Agent to the person entitled to receive such payment in accordance with this
Agreement (in the case of a Lender, for the account of its Facility Office) for

 

 

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	 	 	 	value the same day by transfer to such account of such person with such bank as such
person shall have previously notified to the Facility Agent.

	 	(b)	 	A payment will be deemed to have been made by the Facility Agent on the date on
which it is required to be made under this Agreement if the Facility Agent can
demonstrate that it has, on or before that date, taken steps to make that payment in
accordance with the regulations or operating procedures of the clearing or settlement
system used by the Facility Agent in order to make the payment. For the avoidance, the
Borrower shall not have any liability towards the Lenders for any failure by the
Facility Agent in respect of any distribution by the Facility Agent to the Lenders.

	25.4	 	No Set-off

	 	 	 	All payments required to be made by the Borrower hereunder shall be calculated without
reference to any set-off or counterclaim and shall be made free and clear of and without any
deduction for or on account of any set-off or counterclaim.

	25.5	 	Clawback

	 	 	 	Where a sum is to be paid hereunder to the Facility Agent for account of another person, the
Facility Agent shall not be obliged to make the same available to that other person until
the Facility Agent has been able to establish to its satisfaction that the Facility Agent
has actually received such sum, but if it does so and it proves to be the case that it had
not actually received such sum, then the person to whom such sum was so made available shall
on request refund the same to the Facility Agent together with an amount sufficient to
indemnify the Facility Agent against any cost or loss it may have suffered or incurred by
reason of its having paid out such sum prior to its having received such sum.

	25.6	 	Partial Payments

	 	(a)	 	If the Facility Agent receives a payment that is insufficient to discharge all
the amounts then due and payable by the Borrower under the Finance Documents, the
Facility Agent shall apply that payment towards the obligation of the Borrower under
the Finance Documents in the following order:

	 	(i)	 	firstly, in or towards payment pro rata according to the
respective amount thereof, of any unpaid fees, costs and expenses due to the
Finance Parties under the Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment pro rata according to the
respective amount thereof, of any accrued interest due and payable under this
Agreement;
	 
	 	(iii)	 	thirdly, in or towards payment pro rata according to the
respective amount thereof, of any principal due but unpaid under this Agreement;
and

 

 

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	 	(iv)	 	fourthly, in or towards payment pro rata according to the
respective amount thereof, of any other sum due but unpaid under this Agreement,

	 	 	 	unless and to the extent a deviating application of such payments received is
prescribed by the ECA Guarantor.

	 	(b)	 	Paragraph (a) above will override any appropriation made by the Borrower.

	26.	 	SHARING

	26.1	 	Payments to Lenders

	 	 	 	If a Lender (a “Recovering Bank”) applies any receipt or recovery from the Borrower to a
payment due under this Agreement and such amount is received or recovered other than in
accordance with Clause 25 (Payments), then such Recovering Bank shall:

	 	(a)	 	notify the Facility Agent of such receipt or recovery;
	 
	 	(b)	 	at the request of the Facility Agent, promptly pay to the Facility Agent an
amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which
the Facility Agent determines may be retained by such Recovering Bank as its share of
any payment to be made under this Agreement.

	26.2	 	Redistribution of Payments

	 	 	 	The Facility Agent shall treat the Sharing Payment as if it had been paid by the Borrower
and distribute it rateably between the Lenders (other than the Recovering Bank).

	26.3	 	Recovering Bank’s Rights

	 	 	 	The Lenders (other than the Recovering Bank) will assign to the Recovering Bank the claims
(or the proof thereof) to which the Sharing Payment is allocated and if and to the extent
the Recovering Bank is not able to rely on the assignment the Borrower shall be liable to
the Recovering Bank in an amount equal to that assigned claim.

	26.4	 	Repayable Recoveries

	 	 	 	If any part of the Sharing Payment received or recovered by a Recovering Bank becomes
repayable and is repaid by such Recovering Bank, then:

	 	(a)	 	each party which has received a share of such Sharing Payment pursuant to
Clause 26.2 (Redistribution of Payments) shall, upon request of the Facility Agent, pay
to the Facility Agent for account of such Recovering Bank an amount equal to its share
of such Sharing Payment; and

 

 

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	 	(b)	 	such Recovering Bank’s rights of assignment shall be cancelled and the Borrower
will be liable to the reimbursing of the party for the amount so reimbursed and the
Recovering Bank shall re-assign any claims assigned to it pursuant to Clause 26.3
(Recovering Bank’s Rights).

	26.5	 	Exception

	 	 	 	This Clause 26 shall not apply if the Recovering Bank would not, after making any payment
pursuant hereto, have a valid and enforceable claim against the Borrower.

	26.6	 	Recoveries Through Legal Proceedings

	 	 	 	If any Lender intends to commence any action in any court it shall give prior notice to the
Facility Agent and the other Lenders. If any Lender shall commence any action in any court
to enforce its rights hereunder and, as a result thereof or in connection therewith,
receives any amount, then such Lender shall not be required to share any portion of such
amount with any Lender which has the legal right to, but does not, join in such action or
commence and diligently prosecute a separate action to enforce its rights in another court.

	27.	 	THE FACILITY AGENT, THE SECURITY AGENT, THE ARRANGER AND THE LENDERS

	27.1	 	Appointment of the Agents

	 	 	 	Each of the Lenders appoints the Facility Agent and the Security Agent, in each case to act
as its agent in connection with the Finance Documents and the Hermes Guarantee and
authorises the Facility Agent and the Security Agent to exercise such rights, powers,
authorities and discretions as are specifically delegated to such agent by the terms hereof
and thereof together with all such rights, powers, authorities and discretions as are
incidental thereto.

	27.2	 	Agent’s Discretions

	 	 	 	Each of the Facility Agent and the Security Agent may:

	 	(a)	 	assume, unless it has, in its capacity as agent for the Lenders, received
notice to the contrary from any other party hereto or upon it becoming aware in the
case of any default by the Borrower in the payment of principal or contractual interest
hereunder, that (i) any representation made by the Borrower in connection with the
Finance Documents is true, (ii) no Event of Default or Potential Event of Default has
occurred, (iii) no party is in breach of or default under its obligations under the
Transaction Documents and (iv) any right, power, authority or discretion vested herein
upon the Majority Lenders, the Lenders or any other person or group of persons has not
been exercised;

 

 

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	 	(b)	 	assume that (i) the Facility Office of each Lender is that notified to it by
such Lender in writing and (ii) the information provided by each Lender pursuant to
Clause 31 (Notices) is true and correct in all respects until it has received from such
Lender notice of a change to its Facility Office or any such information and act upon
any such notice until the same is superseded by a further such notice;
	 
	 	(c)	 	engage and pay for the advice or services of any lawyers, accountants,
surveyors or other experts whose advice or services may to it seem necessary, expedient
or desirable and rely upon any advice so obtained;
	 
	 	(d)	 	rely as to any matters of fact upon a certificate signed by or on behalf of the
Borrower or any Shareholder or Sponsor;
	 
	 	(e)	 	rely upon any communication or document believed by it to be genuine;
	 
	 	(f)	 	(other than in respect of, and in connection with, Clause 10.1, where each
Lender may instruct the Facility Agent and/or the Security Agent to enforce such
Lender’s rights contained in Clause 10.1)) refrain from exercising any right, power or
discretion vested in it as agent hereunder unless and until instructed by the Majority
Lenders as to whether or not such right, power or discretion is to be exercised and, if
it is to be exercised, as to the manner in which it should be exercised; and
	 
	 	(g)	 	refrain from acting in accordance with any instructions of the Majority Lenders
or the Lenders to begin any legal action or proceeding arising out of or in connection
with the Finance Documents and the Hermes Guarantee until it shall have received such
Security as it may require (whether by way of payment in advance or otherwise) for all
costs, claims, losses, expenses (including legal fees) and liabilities which it will or
may expend or incur in complying with such instructions.

	27.3	 	Facility Agent’s Obligations

	 	 	 	The Facility Agent shall:

	 	(a)	 	promptly inform each Lender of the contents of any notice or document received
by it in its capacity as Facility Agent from the Borrower under the Finance Documents;
	 
	 	(b)	 	promptly notify each Lender of the occurrence of any Event of Default or any
default by the Borrower in the due performance of or compliance with its obligations
under the Finance Documents of which the Facility Agent has notice from any other party
hereto (or, in the case of the Facility Agent, any default by the Borrower in the
payment of principal or contractual interest hereunder of which it is aware);

 

 

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	 	(c)	 	(save as otherwise provided herein, and other than in respect of, and in
connection with, Clause 10.1, where each Lender may instruct the Facility Agent to
enforce such Lender’s rights contained in Clause 10.1), act as agent hereunder in
accordance with any instructions given to it by the Majority Lenders, which
instructions shall be binding on the Arranger, the Security Agent and the Lenders; 
	 
	 	(d)	 	if so instructed by the Majority Lenders, refrain from exercising any right,
power or discretion vested in it as agent hereunder; and
	 
	 	(e)	 	use its reasonable efforts to obtain the Hermes Guarantee and to comply with
any conditions contained therein, whereas each Lender will, upon request by the
Facility Agent, support, and provide requested information to, the Facility Agent in
order to enable the Facility Agent to comply with its obligations contained in this
paragraph (e).

	 	 	 	The Facility Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature unless otherwise provided for therein.

	27.4	 	Excluded Obligations

	 	 	 	Notwithstanding anything to the contrary expressed or implied in the Finance Documents,
neither the Facility Agent, the Security Agent nor the Arranger shall:

	 	(a)	 	be bound to enquire as to (i) whether or not any representation made or deemed
to be made by the Borrower in connection with the Finance Documents is true, (ii) the
occurrence or otherwise of any Event of Default or Potential Event of Default (other
than, in the case of the Facility Agent, any default by the Borrower in the payment of
principal or contractual interest hereunder), (iii) the performance by the Borrower of
its obligations under the Finance Documents or (iv) any breach of or default by the
Borrower of or under its obligations under the Finance Documents;
	 
	 	(b)	 	be bound to account to any Lender or any other party for any sum or the profit
element of any sum received by it for its own account;
	 
	 	(c)	 	be under any obligations other than those for which express provision is made
herein; or
	 
	 	(d)	 	be or be deemed to be a fiduciary for any other party hereto.

	27.5	 	Indemnification

	 	 	 	Each Lender shall, from time to time on demand by the Facility Agent or the Security Agent,
indemnify the Facility Agent and the Security Agent, in the proportion of its share of the
Loan (or, if no Advances have been made, its Available Commitments) bears to the

 

 

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	 	 	 	amount of the Loan (or, if no Advances have been made, the Available Facilities) at the time
of such demand (or, if the Loan has then been repaid in full, immediately prior to the final
repayment thereof), against any and all costs, claims, losses, expenses (including legal
fees) and liabilities together with any VAT thereon which the Facility Agent or Security
Agent may incur, otherwise than by reason of its own gross negligence or wilful misconduct,
in acting in its capacity as agent hereunder or under the other Finance Documents.

	27.6	 	Security Agent as trustee

	 	(a)	 	The Security Agent declares that it holds all rights, title and interests in,
to and under those Finance Documents to which it is a party and expressed to be a
trustee (acting as trustee for the Finance Parties), and all proceeds of the
enforcement of such Finance Documents, on trust for the Finance Parties from time to
time. This trust shall remain in force even if the Security Agent (in whatever
capacity) is at any time the sole Finance Party.
	 
	 	(b)	 	The Security Agent, in its capacity as trustee or otherwise under any Finance
Document or the Hermes Guarantee is not liable for any failure:

	 	(i)	 	to require the deposit with it of any Finance Document or the
Hermes Guarantee; or any other documents in connection with any Finance Document
or the Hermes Guarantee;
	 
	 	(ii)	 	in it holding any Finance Document or the Hermes Guarantee or any
other documents in connection with any Finance Document or the Hermes Guarantee
in its own possession or to take any steps to protect or preserve the same
including permitting the Borrower to retain any such title deeds, any Finance
Documents, the Hermes Guarantee or any other documents;
	 
	 	(iii)	 	to obtain any licence, consent or other authority for the
execution, delivery, validity, legality, adequacy, performance, enforceability
or admissibility in evidence of any such Finance Document or the Hermes
Guarantee;
	 
	 	(iv)	 	to take or require the Borrower to take any step to render the
Security created or purported to be created by or pursuant to any such Finance
Document or the Hermes Guarantee effective or to secure the creation of any
ancillary Security under the laws of any jurisdiction;
	 
	 	(v)	 	to require any further assurances in relation to any such Finance
Document or the Hermes Guarantee; or
	 
	 	(vi)	 	to insure any asset or require any other person to maintain any
such insurance

 

 

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	 		 	or be responsible for any loss which may be suffered by any person as a
result of the lack, or inadequacy or insufficiency, of any such insurance.

	 	(c)	 	The Security Agent may accept, without enquiry, any right or title the Borrower
may (or may purport to) have to any asset which is the subject of any such Finance
Document or the Hermes Guarantee and shall not be bound or concerned to investigate or
make any enquiry into the right or title of the Borrower to any such asset or to
require the Borrower to remedy any defect in its right or title to the same.
	 
	 	(d)	 	Save as otherwise provided in the Finance Documents, all moneys, which under
the trusts contained in any Finance Document are received by the Security Agent in its
capacity as trustee or otherwise, may be invested in the name of, or under the control
of, the Security Agent in any investment which may be selected by the Security Agent
with the consent of the Majority Lenders. Additionally, the same may be placed on
deposit in the name of, or under the control of, the Security Agent at such bank or
institution (including the Security Agent) and upon such terms as the Security Agent
may think fit.

	27.7	 	Resignation of the Facility Agent or Security Agent

	 	(a)	 	The Facility Agent or Security Agent may resign and appoint one of its
affiliates acting through an office in Germany as successor by giving notice to the
other parties or, in the case of the Security Agent, to the Facility Agent on behalf of
the Lenders, and to the Borrower.
	 
	 	(b)	 	Alternatively the Facility Agent or Security Agent may resign by giving notice
to the other Finance Parties or, in the case of the Security Agent, to the Facility
Agent on behalf of the Lenders, and to the Borrowers, in which case the Lenders (after
consultation with the Borrower) may appoint a successor Facility Agent or Security
Agent, as appropriate.
	 
	 	(c)	 	If the Lenders have not appointed a successor Facility Agent or Security Agent
in accordance with paragraph (b) above within 30 days after notice of resignation was
given, the Facility Agent or Security Agent (after consultation with the Borrower) may
appoint a successor Facility Agent or Security Agent (acting through an office in
Germany.
	 
	 	(d)	 	The retiring Facility Agent or, as the case may be, Security Agent shall, at
its own cost, make available to the successor Facility Agent or Security Agent such
documents and records and provide such assistance as the successor Facility Agent or
Security Agent may reasonably request for the purposes of performing its

 

 

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	 	 	 	functions as Facility Agent or, as the case may be, Security Agent under the Finance
Documents and the Hermes Guarantee.

	 	(e)	 	The Facility Agent’s or, as the case may be, the Security Agent’s resignation
notice shall only take effect upon the appointment of a successor and, in the case of
the Security Agent, the transfer of all of the Security for the Loans held by the
incumbent to that successor.
	 
	 	(f)	 	Upon the appointment of a successor:

	 	(i)	 	the retiring Facility Agent or, as the case may be, Security
Agent shall be discharged from any further obligation in respect of the Finance
Documents and the Hermes Guarantee but shall remain entitled to the benefit of
this Clause 27; and
	 
	 	(ii)	 	the successor Facility Agent or, as the case may be, Security
Agent and each of the other parties shall have the same rights and obligations
amongst themselves as they would have had if such successor had been an original
party.

	 	(g)	 	With the prior written consent of the Borrower (such consent not to be
unreasonably withheld), the Lenders may, by notice to the Facility Agent or to the
Security Agent, as appropriate, require it to resign in accordance with paragraph (b)
above. In this event, the Facility Agent or Security Agent shall resign in accordance
with paragraph (b) above.

	27.8	 	Exclusion of Liabilities

	 	 	 	Except in the case of gross negligence (grobe Fahrlässigkeit) or wilful misconduct
(Vorsatz), none of the Facility Agent, the Security Agent or the Arranger accept any
responsibility to any other Finance Party:

	 	(a)	 	for the adequacy, accuracy and/or completeness or any information supplied by
the Facility Agent, the Security Agent, the Arranger, by the Borrower or by any other
person in connection with the Finance Documents or the Hermes Guarantee, the
transactions therein contemplated or any other agreement, arrangement or document
entered into, made or executed in anticipation of, pursuant to or in connection with
the Finance Documents;
	 
	 	(b)	 	for the adequacy, accuracy and/or completeness of any translation;
	 
	 	(c)	 	for the legality, validity, effectiveness, adequacy or enforceability of the
Finance Documents, the Hermes Guarantee or any other agreement, arrangement or

 

 

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	 	 	 	document entered into, made or executed in anticipation of, pursuant to or in
connection with the Finance Documents; or

	 	(d)	 	for the exercise of, or the failure to exercise, any judgment, discretion or
power given to any of them by or in connection with the Finance Documents, the Hermes
Guarantee or any other agreement, arrangement or document entered into, made or
executed in anticipation of, pursuant to or in connection with the Finance Documents or
the Hermes Guarantee.

	 	 	 	Accordingly, none of the Facility Agent, the Security Agent or the Arranger shall be under
any liability in respect of such matters, save in the case of gross negligence or wilful
misconduct.

	27.9	 	No Actions

	 	 	 	Each of the Lenders agrees that it will not assert or seek to assert against any director,
officer or employee of the Facility Agent, the Security Agent or the Arranger any claim it
might have against any of them in respect of the matters referred to in Clause 27.8
(Exclusion of Liabilities).

	27.10	 	Business with the Group

	 	 	 	The Facility Agent and the Security Agent may accept deposits from, lend money to and
generally engage in any kind of banking or other business with any, Sponsor.

	27.11	 	Own Responsibility

	 	 	 	It is understood and agreed by each Lender that at all times it has itself been, and will
continue to be, solely responsible for making its own independent appraisal of and
investigation into all risks arising under or in connection with the Finance Documents and
the Hermes Guarantee including, but not limited to:

	 	(a)	 	the financial condition, creditworthiness, condition, affairs, status and
nature of the Borrower, any Shareholder, Sponsor;
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy and enforceability of the
Finance Documents, the Hermes Guarantee and any other agreement, arrangement or
document entered into, made or executed in anticipation of, pursuant to or in
connection with the Finance Documents or the Hermes Guarantee;
	 
	 	(c)	 	whether such Lender has recourse, and the nature and extent of that recourse,
against the Borrower or any other person or any of their respective assets under or in
connection with the Finance Documents or the Hermes Guarantee, the transactions therein
contemplated or any other agreement, arrangement or document entered into,

 

 

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	 	 	 	made or executed in anticipation of, pursuant to or in connection with the Finance
Documents or the Hermes Guarantee; and

	 	(d)	 	the adequacy, accuracy and/or completeness of information provided by the
Facility Agent, the Security Agent, either Arranger, the Borrower, or by any other
person in connection with the Finance Documents or the Hermes Guarantee, the
transactions contemplated therein or any other agreement, arrangement or document
entered into, made or executed in anticipation of, pursuant to or in connection with
the Finance Documents or the Hermes Guarantee.

	 	 	 	Accordingly, each Lender acknowledges to the Facility Agent, the Security Agent and the
Arranger that it has not relied on and will not hereafter rely on the Facility Agent, the
Security Agent or the Arranger or any of them in respect of any of these matters.

	27.12	 	Agency and Trustee Division Separate

	 	 	 	In acting as agent or trustee under the Finance Documents for the Lenders, the Facility
Agent and the Security Agent shall be regarded as acting through its agency division or, as
the case may be, trustee division which shall be treated as a separate entity from any other
of its divisions or departments and, notwithstanding the foregoing provisions of this
Clause 27 (The Facility Agent, the Security Agent, the Arranger and the Lenders) any
information received by some other division or department of the Facility Agent or Security
Agent may be treated as confidential and shall not be regarded as having been given to the
Facility Agent’s or Security Agent’s agency or trustee division.

	28.	 	ASSIGNMENTS AND TRANSFERS

	28.1	 	Binding Agreement

	 	 	 	This Agreement shall be binding upon and enure to the benefit of each party hereto and its
or any subsequent successors and Transferees.

	28.2	 	No Assignments and Transfers by the Borrower

	 	 	 	The Borrower shall not be entitled to assign, transfer or otherwise dispose of all or any of
its rights, benefits and obligations under the Finance Documents.

	28.3	 	Assignments and Transfers by the Lenders

	 	(a)	 	Each of the Lenders (a “Transferor”) may at any time:

	 	(i)	 	assign any of its rights and benefits (an “Assignment”) ; or
	 
	 	(ii)	 	transfer any of its rights and obligations (a “Transfer”); or

 

 

80

	 	(iii)	 	otherwise dispose of any of its rights and obligations
(including, but not limited to, by way of sub-participation)

	 	 	 	under this Agreement, the Hermes Guarantee and/or any Security Document in whole or
in part to third parties (each a “Transferee”) subject to Clause (b) and will
subsequently inform the Borrower.

	 	(b)	 	Any Assignment or Transfer (save for sub-participations) will only be
permissible

	 	(i)	 	upon prior written consent of the Borrower (such consent not to
be unreasonably withheld); and
	 
	 	(ii)	 	if it refers to a minimum of EUR 5,000,000

	 	 	 	unless such Assignment and/or Transfer is intended to be made to another existing
Lender or an affiliate of an existing Lender or an Event of Default has occurred and
is continuing.

	 	(c)	 	A Transfer will only become effective upon execution by the Transferor and the
Transferee and countersignature by the Facility Agent of a transfer certificate
substantially in the form of Schedule 2 (Form of Transfer Certificate) (the “Transfer
Certificate”). Upon the Transfer becoming effective, and for such part of the
Transferor’s rights and obligations, as is transferred, the Transferor shall be
released from its obligations under the Finance Documents and all other related
documentation, and its rights and obligations under such documents shall transfer to
and vest in the Transferee provided that it will be the sole responsibility of the
Transferee to ensure that any additional action which may be required for securing the
valid transfer to it of any rights in respect of the Hermes Guarantee and/or the
security under the applicable Security Documents is taken.
	 
	 	(d)	 	The Facility Agent shall consult the Borrower of a proposed Assignment and/or
Transfer at least 10 days in advance. Any Transferor shall give timely notice of any
proposed Transfer to the Facility Agent in order to enable the Facility Agent to inform
the Borrower of such Transfer with a notice period of at least 10 days.

	28.4	 	Assignment and Transfer Fees

	 	 	 	On the date upon which an Assignment or a Transfer (save for sub-participation) takes effect
the relevant assignee or Transferee shall pay to the Facility Agent for its own account a
fee of EUR 2,000 and to the Security Agent for its own account a fee of EUR 1,000.

 

 

81

	28.5	 	Disclosure of Information

	 	 	 	Any Lender may disclose to any person:

	 	(a)	 	to (or through) whom such Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights, benefits and obligations under the
Finance Documents;
	 
	 	(b)	 	with (or through) whom such Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or the Borrower; or
	 
	 	(c)	 	to whom information may be required to be disclosed by any applicable law:

	 	 	 	such information about the Borrower, the Shareholders, the Sponsor, the Project and the
Transaction Documents as such Lender shall consider appropriate provided that in relation to
sub-Clauses (a) and (b) the person to whom such information is to be given has first entered
into a confidentiality agreement or is otherwise bound by duties of bank secrecy. The
confidentiality restrictions in this Clause shall not apply to:

	 	(a)	 	information already known to a recipient otherwise than in breach of this
Clause or any other confidentiality obligation binding upon the disclosing party;
	 
	 	(b)	 	information also received from another source on terms not requiring it to be
kept confidential; and
	 
	 	(c)	 	information which is or becomes publicly available otherwise than in breach of
this Clause or any other confidentiality obligation binding upon the disclosing party.

	29.	 	CALCULATIONS AND EVIDENCE OF DEBT

	29.1	 	Basis of Accrual

	 	 	 	Interest, commitment fee and default interest shall accrue from day to day and shall be
calculated:

	 	(a)	 	in relation to each Advance made or to be made under a Fixed Rate Facility on
the basis of a year of 360 days; and
	 
	 	(b)	 	in relation to each Advance made or to be made under a Floating Rate Facility
on the basis of a year of 360 days

	 	 	 	for amounts denominated in EUR (or, in any case where market practice differs, in accordance
with market practice) and the actual number of days elapsed. The same shall

 

 

82

	 	 	 	apply mutatis mutandis in respect of the agency fee pursuant to Clause 22.4 (Agency Fee) and
the security agency fee pursuant to Clause 22.5 (Security Agency Fee).

	29.2	 	Evidence of Debt

	 	 	 	Each Lender shall maintain in accordance with its usual practice accounts evidencing the
amounts from time to time lent by and owing to it hereunder.

	29.3	 	Control Accounts

	 	 	 	The Facility Agent shall maintain on its books a control account or accounts in which shall
be recorded (a) the amount of any Advance and each Lender’s share therein, (b) the amount of
all principal, interest and other sums due or to become due from the Borrower and each
Lender’s share therein and (c) the amount of any sum received or recovered by the Facility
Agent hereunder and each Lender’s share therein.

	29.4	 	Prima Facie Evidence

	 	 	 	In any legal action or proceeding arising out of or in connection with any Finance Document,
the entries made in the accounts maintained pursuant to Clause 29.2 (Evidence of Debt) and
Clause 29.3 (Control Accounts) shall be prima facie evidence of the existence and amounts of
the specified obligations of the Borrower.

	30.	 	REMEDIES AND WAIVERS, PARTIAL INVALIDITY

	30.1	 	Remedies and Waivers

	 	 	 	No failure to exercise, nor any delay in exercising any right or remedy under the Finance
Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy prevent any further or other exercise thereof or the exercise of any other
right or remedy. The rights and remedies herein provided are cumulative and not exclusive of
any rights or remedies provided by law.

	30.2	 	Partial Invalidity

	 	 	 	If, at any time, any provision hereof is or becomes illegal, invalid or unenforceable in any
respect under the law of any jurisdiction, neither the legality, validity or enforceability
of the remaining provisions hereof nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction shall in any way be affected or impaired
thereby.

	31.	 	NOTICES

	31.1	 	Communications in Writing

	 	 	 	Each communication to be made under the Finance Documents shall be made in writing and,
unless otherwise stated, shall be made by fax or letter.

 

 

83

	31.2	 	Addressees

	 	 	 	Any communication or document to be made or delivered pursuant to the Finance Documents
shall (unless the recipient of such communication or document has, by fifteen days’ written
notice to the Facility Agent, specified another address or fax number) be made or delivered
to the address or fax number:

	 	(a)	 	in the case of the Facility Agent, as follows:

	 	 	 	 	 
	 

	 	Address:
	 	Im Trutz Frankfurt 55
	 

	 	 	 	60322 Frankfurt am Main
	 

	 	 	 	Federal Republic of Germany
	 

	 	 	 	Attn.: Ms. Vivienne Cadger
	 

	 	Fax:
	 	+49-69-97153-171;

	 	(b)	 	in the case of the Security Agent, as follows:

	 	 	 	 	 
	 

	 	Address:
	 	Level 9, Main Office Tower
	 

	 	 	 	Financial Park Labuan
	 

	 	 	 	Jln. Merdeka, 87000
	 

	 	 	 	Federal Territory of Labuan, Malaysia
	 

	 	 	 	Attn.: Mr. Rizal Bin Abdullah
	 

	 	Fax:
	 	+60320263901;

	 	(c)	 	in the case of the Borrower, identified with its name on the signature page;
and
	 
	 	(d)	 	in the case of each Lender, notified in writing to the Facility Agent prior to
the date hereof (or, in the case of a Transferee, at the end of the Transfer
Certificate to which it is a party as Transferee);

	 	 	 	provided that not more than one address may be specified by each party pursuant to this
Clause 31.2 (Addressees) at any time.

	31.3	 	Delivery

	 	 	 	Any communication or document to be made or delivered by one person to another pursuant to
the Finance Documents shall:

	 	(a)	 	if by way of fax, be deemed to have been received when transmission has been
completed; and
	 
	 	(b)	 	if by way of letter, be deemed to have been delivered when left at the relevant
address or, as the case may be, ten days after being deposited in the post postage
prepaid in an envelope addressed to it at such address,

 

 

84

	 	 	 	provided that any communication or document to be made or delivered to the Facility Agent or
the Security Agent shall be effective only when received by its agency division and then
only if the same is expressly marked for the attention of the department or officer
identified with the Facility Agent’s or, as the case may be, Security Agent’s signature
below (or such other department or officer as the Facility Agent or, as the case may be,
Security Agent shall from time to time specify for this purpose).

	31.4	 	Notification of Changes

	 	 	 	Promptly upon receipt of notification of a change of address or fax number pursuant to
Clause 31.2 (Addressees) or upon changing its own address of fax number the Facility Agent
shall notify the other parties hereto of such change.

	31.5	 	Language

	 	 	 	Each notice or other communication made or delivered under this Agreement shall be in
English (or in German if so required by the ECA-Guarantor). Any other documents required to
be delivered under or in connection with this Agreement shall be either in English or be
accompanied by a certified translation into English (or in German if so required by the
ECA-Guarantor).

	32.	 	COUNTERPARTS

	 	 	 	This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument.

	33.	 	AMENDMENTS

	33.1	 	Amendments

	 	 	 	The Facility Agent, if it has the prior consent of, or an instruction from, the Majority
Lenders and the Borrower, may from time to time agree in writing to amend this Agreement or
to waive, prospectively or retrospectively, any of the requirements of this Agreement. Any
amendments or waivers so agreed shall be binding on all parties hereto provided that no such
waiver or amendment shall impose any new or additional obligations upon any party hereto
without the consent of such party.

	33.2	 	Amendments Requiring the Consent of all the Lenders

	 	 	 	An amendment or waiver which relates to:

	 	(a)	 	Clause 26 (Sharing) or this Clause 33;
	 
	 	(b)	 	a change in the principal amount of or currency of any Advance or deferral of
any Repayment Date;

 

 

85

	 	(c)	 	a change in the Floating Rate Margin, the amount or currency of any payment of
interest, fees or any other amount payable hereunder to any party or deferral of the
date for payment thereof;
	 
	 	(d)	 	Clause 19 (Financial Covenants);
	 
	 	(e)	 	the conditions set out in Clause 3.1 (General Conditions for all Advances);
	 
	 	(f)	 	Clause 28.2 (No Assignments and Transfers by the Borrower); or
	 
	 	(g)	 	any provision which contemplates the need for the consent or approval of all
the Lenders,

	 	 	 	shall not be made without the prior written consent of all the Lenders unless the contrary
is expressly indicated.

	33.3	 	Exceptions

	 	 	Notwithstanding any other provisions hereof, neither the Facility Agent nor the Security
Agent shall be obliged to agree to any such amendment or waiver if the same would:

	 	(a)	 	amend or waive this Clause 33, Clause 23 (Costs and Expenses) or Clause 27 (The
Facility Agent, the Security Agent, the Arranger and the Lenders); or
	 
	 	(b)	 	otherwise amend or waive any of the Facility Agent’s or Security Agent’s rights
hereunder.

	34.	 	HERMES GUARANTEE

	34.1	 	To the best of its knowledge, each of the Original Lenders and the Facility Agent has taken
all steps necessary to align this Agreement with the provisions of the Hermes Guarantee.

	34.2	 	If, in the opinion of the Facility Agent, there are any provisions in this Agreement that
contradict or conflict with any provision of the Hermes Guarantee to an extent that has or may
have the effect of rendering all or any part of the Hermes Guarantee void, voidable or
otherwise not in full force and effect, the Finance Parties and the Borrower shall enter into
good faith negotiations and use all reasonable efforts to agree on amendments to this
Agreement necessary to ensure compliance with the terms of the Hermes Guarantee. The
negotiation period for this purpose shall be four weeks unless a period set by Hermes is
shorter, in which case the negotiation period shall be as long as the period set by Hermes.
The four weeks negotiation period shall start upon the Facility Agent requesting such
negotiation period or upon receipt of a notification from Hermes, as the case may be.

 

 

86

	34.3	 	The Facility Agent agrees that it shall not agree to any changes to the Hermes Guarantee
which (in its sole opinion) will or are reasonably likely to have the effect of or require
(whether pursuant to an amendment under Clause 34.2 above or otherwise) an amendment to any of
the material financial terms of this Agreement.

	35.	 	NON APPLICABILITY OF SECTION 181 BGB

	 	 	 	Section 181 BGB does not apply to any authorisation the Borrower gives to the Arranger, the
Facility Agent, the Security Agent and the Lenders.

	36.	 	CONFIRMATION CONCERNING MONEY LAUNDERING

	 	 	 	The Borrower expressly confirms to each Finance Party that all funds to be made available to
it under the Finance Documents will be drawn for its own account and that it is the economic
beneficiary (wirtschaftlich Berechtigter) within the meaning of section 8 of the German
Money Laundering Act (Geldwäschegesetz).

	37.	 	GOVERNING LAW

	 	 	 	This Agreement is governed by German law.

	38.	 	JURISDICTION

	38.1	 	Arbitration

	 	 	 	Subject to Clause 38.2 (Courts of Law) hereof, any dispute (a “Dispute”) arising out of or
in connection with this Agreement (including a dispute regarding the existence, validity or
termination of this Agreement or the consequences of its nullity) shall be finally settled
under the Rules of Arbitration of the International Chamber of Commerce (the “Rules”) by
three arbitrators appointed in accordance with the Rules. The arbitral tribunal shall
consist of three arbitrators. The place of arbitration shall be Zurich, Switzerland and the
language of the arbitration shall be English. Save as provided in Clause 38.2 (Courts of
Law) hereof, the parties exclude the jurisdiction of the courts of law.

	38.2	 	Courts of Law

	 	 	 	In the case of any Dispute each claimant may prior to having initiated arbitral proceedings,
by notice in writing to the relevant defendant require that such Dispute be heard by a court
of law. If a claimant gives such notice, the Dispute to which such notice refers shall be
determined in accordance with Clause 38.3 (Non-exclusive Jurisdiction) hereof.

	38.3	 	Non-exclusive Jurisdiction

	 	 	 	The Borrower, the Facility Agent, the Security Agent and the Lenders irrevocably agree that
place of performance and place of non-exclusive jurisdiction for any obligations under this

 

 

87

	 	 	 	Agreement is Frankfurt am Main, Federal Republic of Germany. The Borrower irrevocably
submits to the non-exclusive jurisdiction of the competent courts in Frankfurt am Main,
Federal Republic of Germany, in the case of any proceedings or legal action regarding this
Agreement waiving any other jurisdiction to which the Borrower may be entitled by law.

	38.4	 	Appointment of German Process Agent

	 	 	 	The Borrower agrees that the process by which any suit, action or proceedings in the Federal
Republic of Germany in connection with this Agreement is begun may be served on it by being
delivered to the German Process Agent and the Borrower agrees that failure by the German
Process Agent to give notice of such service of process shall not impair or affect the
validity of such service or of any judgment based thereon.
	 
	 	 	 	If the appointment of such German Process Agent ceases to be effective, the Borrower shall
immediately notify the Facility Agent thereof and appoint a further person in the Federal
Republic of Germany to accept service of process on its behalf in the Federal Republic of
Germany and, failing such appointment within fifteen (15) days, the Facility Agent shall be
entitled to appoint such a person by notice to the Borrower. Nothing contained herein shall
affect the right to serve process in any other manner permitted by relevant law.

	38.5	 	Obligations of Borrower several

	 	 	 	The Borrower agrees that the Supply Contracts and the obligations resulting therefrom shall
not have any legal influence on this Agreement. With regard to the obligations of the
Borrower under this Agreement the Borrower may not raise any objection or defence based upon
the Supply Contracts or emanating from the commercial relationship between the Borrower and
Exporter A and Exporter B.

	39.	 	LANGUAGE

	 	 	 	This Agreement is made in the English language. However, where a German translation of a
word or phrase appears in the text of this Agreement, the German translation of such word or
phrase shall prevail.

 

 

 

EXECUTION PAGE

FACILITY AGREEMENT

FIRST SOLAR MALAYSIA SDN. BHD.

as Borrower

	 	 	 	 	 	 	 	 	 
	/s/ Jens Meyerhoff	 	 	 	/s/ John Gaffney	 	 
	 	 	 	 	 	 	 
	Name:

	 	Jens Meyerhoff
	 	 	 	Name: 	 	John Gaffney
	Address:

	 	8, Jalan Hi-Tech 3/3

Zoon Industri Fasa 3

Kulim Hi-Tech Park

09000 Kulim

Kedah Darul Aman

Malaysia

Attn.:  David Brady

Fax:      001-602-414-9462	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	IKB DEUTSCHE INDUSTRIEBANK AG

as Arranger	 	 	 	 	 	 
	 	 	 	 	 	 	 
	/s/ Anza Lange	 	 	 	/s/ Dr. Peer Günzel	 	 
	 	 	 	 	 		
	Name:

	 	Anza Lange 	 	 	 	Name:	 	Dr. Peer Günzel
	Address:

	 	Wilhelm-Bötzkes-Straße 1

40474 Düsseldorf

Federal Republic of Germany

Attn.:   Manfred Ziwey

Fax:      +49-211-8221-2282	 	 	 	 		

 

NATIXIS ZWEIGNIEDERLASSUNG DEUTSCHLAND

as Facility Agent and Original Lender

	 	 	 	 	 	 	 	 	 
	/s/ de Belsunce 	 	 	 	/s/ Brüggermann
	 	 	 	 	 
	Name:
	 	de Belsunce 	 	 	 	Name:	 	Brüggermann
	Address:

	 	Im Trutz Frankfurt 55

60322 Frankfurt am Main

Federal Republic of Germany

Attn.:  Ms. Vivienne Cadger

Fax:     +49-69-97153171	 	 	 	 		
	 
	 	 	 	 	 	 		
	AKA AUSFUHRKREDIT-GESELLSCHAFT MBH

as Original Lender	 	 	 	 		

	 	 	 	 	 	 	 
	/s/ Stephanie Meier-Sydow	 	 	 	/s/ Dr. Roland Elben
	 	 	 	 	 
	Name:

	 	Stephanie Meier-Sydow
	 	 	 	Name: Dr. Roland Elben
	Address:

	 	Große Gallusstraße 1-7

60311 Frankfurt am Main

Federal Republic of Germany

Attn.:  Mrs. Heike Könebruch

Fax:     +49-69-29891-150	 	 	 	 

 

NATIXIS LABUAN BRANCH

as Security Agent

	 	 	 	 	 	 	 	 	 
	/s/ Wong Ching Tkong	 	 	 	/s/ Rizal B. Abdullah
	 	 	 	 	 
	Name:

	 	Wong Ching Tkong	 	 	 	Name:	 	Rizal B. Abdullah
	Address:

	 	Level 9, Main Office Tower

Financial Park Labuan

Jln. Merdeka, 87000

Federal Territory of Labuan, Malaysia

Attn.:   Mr. Rizal Bin Abdullah

Fax:      +60320263901

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