Document:

ex_124734.htm

Exhibit 4.8

 

 

 

 

 

 

FNCB BANCORP, INC.

 

SUBORDINATED DEBT INDENTURE

 

DATED AS OF                  

 

WILMINGTON TRUST, NATIONAL ASSOCIATION, AS TRUSTEE

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
			 

				
			Page Number

			
	
			 

				
			 

			
	
			Article I DEFINITIONS AND INCORPORATION BY REFERENCE

				1
	
			 

				
			 

				 
	
			Section 1.1

				
			Definitions

				1
	
			Section 1.2

				
			Other Definitions

				5
	
			Section 1.3

				
			Incorporation by Reference of Trust Indenture Act

				5
	
			Section 1.4

				
			Rules Of Construction

				5
	
			 

				
			 

				 
	
			Article II THE SECURITIES

				5
	
			 

				
			 

				 
	
			Section 2.1

				
			Issuable In Series

				5
	
			Section 2.2

				
			Establishment Of Terms Of Series Of Securities

				6
	
			Section 2.3

				
			Execution and Authentication

				7
	
			Section 2.4

				
			Registrar and Paying Agent

				7
	
			Section 2.5

				
			Paying Agent to Hold Money in Trust

				8
	
			Section 2.6

				
			Securityholder Lists

				8
	
			Section 2.7

				
			Transfer and Exchange

				8
	
			Section 2.8

				
			Mutilated, Destroyed, Lost and Stolen Securities

				8
	
			Section 2.9

				
			Outstanding Securities

				9
	
			Section 2.10

				
			Treasury Securities

				9
	
			Section 2.11

				
			Temporary Securities

				9
	
			Section 2.12

				
			Cancellation

				10
	
			Section 2.13

				
			Defaulted Interest

				10
	
			Section 2.14

				
			Global Securities

				10
	
			Section 2.15

				
			CUSIP Numbers

				11
	
			 

				
			 

				 
	
			Article III REDEMPTION

				11
	
			 

				
			 

				 
	
			Section 3.1

				
			Notice To Trustee

				11
	
			Section 3.2

				
			Selection of Securities to be Redeemed

				11
	
			Section 3.3

				
			Notice of Redemption

				12

 

 

 

 

	
			Section 3.4

				
			Effect of Notice of Redemption

				12
	
			Section 3.5

				
			Deposit of Redemption Price

				12
	
			Section 3.6

				
			Securities Redeemed in Part

				12
	
			 

				
			 

				 
	
			Article IV COVENANTS

				12
	
			 

				
			 

				 
	
			Section 4.1

				
			Payment of Principal and Interest

				12
	
			Section 4.2

				
			SEC Reports

				12
	
			Section 4.3

				
			Compliance Certificate

				13
	
			Section 4.4

				
			Stay, Extension and Usury Laws

				13
	
			Section 4.5

				
			Corporate Existence

				13
	
			Section 4.6

				
			Taxes

				13
	
			 

				
			 

				 
	
			Article V SUCCESSORS

				13
	
			 

				
			 

				 
	
			Section 5.1

				
			When Company May Merge, Etc

				13
	
			Section 5.2

				
			Successor Corporation Substituted

				14
	
			 

				
			 

				 
	
			Article VI  DEFAULTS AND REMEDIES

				14
	
			 

				
			 

				 
	
			Section 6.1

				
			Events of Default

				14
	
			Section 6.2

				
			Acceleration of Maturity; Rescission and Annulment

				15
	
			Section 6.3

				
			Collection Of Indebtedness And Suits For Enforcement By Trustee

				15
	
			Section 6.4

				
			Trustee May File Proofs Of Claim

				16
	
			Section 6.5

				
			Trustee May Enforce Claims Without Possession Of Securities

				16
	
			Section 6.6

				
			Application of Money Collected

				16
	
			Section 6.7

				
			Limitation On Suits

				16
	
			Section 6.8

				
			Unconditional Right of Holders to Receive Principal and Interest

				17
	
			Section 6.9

				
			Restoration of Rights and Remedies

				17
	
			Section 6.10

				
			Rights and Remedies Cumulative

				17
	
			Section 6.11

				
			Delay or Omission Not Waiver

				17
	
			Section 6.12

				
			Control by Holders

				17

 

ii

 

 

	
			Section 6.13

				
			Waiver Of Past Defaults

				17
	
			Section 6.14

				
			Undertaking For Costs

				18
	
			 

				
			 

				 
	
			Article VII TRUSTEE

				18
	
			 

				
			 

				 
	
			Section 7.1

				
			Duties of Trustee

				18
	
			Section 7.2

				
			Rights of Trustee

				19
	
			Section 7.3

				
			Individual Rights of Trustee

				20
	
			Section 7.4

				
			Trustee’s Disclaimer

				20
	
			Section 7.5

				
			Notice Of Defaults

				20
	
			Section 7.6

				
			Reports by Trustee to Holders

				20
	
			Section 7.7

				
			Compensation and Indemnity

				20
	
			Section 7.8

				
			Replacement of Trustee

				21
	
			Section 7.9

				
			Successor Trustee by Merger, Etc

				21
	
			Section 7.10

				
			Eligibility; Disqualification

				21
	
			Section 7.11

				
			Referential Collection of Claims Against Company

				21
	
			 

				
			 

				 
	
			Article VIII  SATISFACTION AND DISCHARGE; DEFEASANCE

				22
	
			 

				
			 

				 
	
			Section 8.1

				
			Satisfaction and Discharge of Indenture

				22
	
			Section 8.2

				
			Application of Trust Funds; Indemnification

				22
	
			Section 8.3

				
			Legal Defeasance of Securities of any Series

				23
	
			Section 8.4

				
			Covenant Defeasance

				24
	
			Section 8.5

				
			Repayment to Company

				24
	
			 

				
			 

				 
	
			Article IX  AMENDMENTS AND WAIVERS

				24
	
			 

				
			 

				 
	
			Section 9.1

				
			Without Consent of Holders

				24
	
			Section 9.2

				
			With Consent of Holders

				25
	
			Section 9.3

				
			Limitations

				25
	
			Section 9.4

				
			Compliance With Trust Indenture Act

				26
	
			Section 9.5

				
			Revocation and Effect of Consents

				26

 

iii

 

 

	
			Section 9.6

				
			Notation on or Exchange of Securities

				26
	
			Section 9.7

				
			Trustee Protected

				26
	
			 

				
			 

				 
	
			Article X MISCELLANEOUS

				26
	
			 

				
			 

				 
	
			Section 10.1

				
			Trust Indenture Act Controls

				26
	
			Section 10.2

				
			Notices

				26
	
			Section 10.3

				
			Communication by Holders with Other Holders

				27
	
			Section 10.4

				
			Certificate and Opinion as to Conditions Precedent

				27
	
			Section 10.5

				
			Statements Required in Certificate or Opinion

				27
	
			Section 10.6

				
			Rules by Trustee and Agents

				27
	
			Section 10.7

				
			Legal Holidays

				28
	
			Section 10.8

				
			No Recourse Against Others

				28
	
			Section 10.9

				
			Counterparts

				28
	
			Section 10.10

				
			Governing Laws

				28
	
			Section 10.11

				
			No Adverse Interpretation of Other Agreements

				28
	
			Section 10.12

				
			Successors

				28
	
			Section 10.13

				
			Severability

				28
	
			Section 10.14

				
			Table of Contents, Headings, Etc

				28
	
			 

				
			 

				 
	
			Article XI SINKING FUNDS

				28
	
			 

				
			 

				 
	
			Section 11.1

				
			Applicability of Article

				28
	
			Section 11.2

				
			Satisfaction Of Sinking Fund Payments With Securities

				29
	
			Section 11.3

				
			Redemption Of Securities For Sinking Fund

				29

 

iv

 

 

CROSS REFERENCE TABLE

 

	
			Trust Indenture

				
			 

				
			 

				
			 

				
			Indenture

			
	
			Act Section

				
			 

				
			 

				
			 

				
			Section

			
	
			Section 310

				
			 

				
			(a)(1)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(a)(2)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(a)(3)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(a)(4)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(a)(5)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.10

			
	
			Section 311

				
			 

				
			(a)

				
			 

				
			7.11

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.11

			
	
			 

				
			 

				
			(c)

				
			 

				
			N/A

			
	
			Section 312

				
			 

				
			(a)

				
			 

				
			2.6

			
	
			 

				
			 

				
			(b)

				
			 

				
			10.3

			
	
			 

				
			 

				
			(c)

				
			 

				
			10.3

			
	
			Section 313

				
			 

				
			(a)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(b)(1)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(b)(2)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(c)(1)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(d)

				
			 

				
			7.6

			
	
			Section 314

				
			 

				
			(a)

				
			 

				
			4.2, 10.5

			
	
			 

				
			 

				
			(b)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(c)(1)

				
			 

				
			10.4

			
	
			 

				
			 

				
			(c)(2)

				
			 

				
			10.4

			
	
			 

				
			 

				
			(c)(3)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(d)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(e)

				
			 

				
			10.5

			
	
			 

				
			 

				
			(f)

				
			 

				
			N/A

			
	
			Section 315

				
			 

				
			(a)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.5

			
	
			 

				
			 

				
			(c)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(d)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(e)

				
			 

				
			6.14

			
	
			Section 316

				
			 

				
			(a)

				
			 

				
			2.10

			
	
			 

				
			 

				
			(a)(1)(A)

				
			 

				
			6.12

			
	
			 

				
			 

				
			(a)(1)(B)

				
			 

				
			6.13

			
	
			 

				
			 

				
			(b)

				
			 

				
			6.8

			
	
			Section 317

				
			 

				
			(a)(1)

				
			 

				
			6.3

			
	
			 

				
			 

				
			(a)(2)

				
			 

				
			6.4

			
	
			 

				
			 

				
			(b)

				
			 

				
			2.5

			
	
			Section 318

				
			 

				
			(a)

				
			 

				
			10.1

			

 

* This Cross Reference Table shall not, for any purpose, be deemed to be part of this Indenture.

 

v

 

 

This SUBORDINATED DEBT INDENTURE, dated as of             , is made by and between FNCB BANCORP, INC., a Pennsylvania corporation (the “Company”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, not in its individual capacity but solely as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture:

 

Article I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1           Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Authorized Newspaper” means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used. If it shall be impractical in the opinion of the Trustee to make any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice.

 

“Bearer Security” means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday, a legal holiday or any other day on which banking institutions in the City of New York, New York, or any Place of Payment are authorized or required by law, regulation or executive order to close.

 

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

 

 

 

“Company Request” means a written request signed in the name of the Company by its Chief Executive Officer, the President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date hereof is located at 1100 North Market Street, Wilmington, DE 19890, Attention: FNCB Bancorp, Inc. Administrator, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Designated Senior Indebtedness” means any of the Company’s Senior Indebtedness that expressly provides that it is “designated senior indebtedness” for purposes of this Indenture (provided that the instrument, agreement or other document creating or evidencing such Senior Indebtedness may place limitations and conditions on the right of such Senior Indebtedness to exercise the rights of Designated Senior Indebtedness).

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the Stated Maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$” means the currency of the United States of America.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Federal Reserve” means the Board of Governors of the Federal Reserve System, or its designated district bank, as applicable, and any successor federal agency that is primarily responsible for regulating the activities of bank holding companies.

 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect as of the date of determination.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered or the holder of a Bearer Security.

 

2

 

 

“Indebtedness” means , with respect to any person, and without duplication, (a) all indebtedness, obligations and other liabilities (contingent or otherwise) of such person for borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange contracts, currency exchange agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by bonds, debentures, notes or similar instruments (whether or not the recourse of the lender is to the whole of the assets of such person or to only a portion thereof) (other than any account payable or other accrued current liability or obligation incurred in the ordinary course of business in connection with the obtaining of materials or services), (b) all reimbursement obligations and other liabilities (contingent or otherwise) of such person with respect to letters of credit, bank guarantees or bankers’ acceptances, (c) all obligations and liabilities (contingent or otherwise) in respect of leases of such person required, in conformity with generally accepted accounting principles, to be accounted for as capitalized lease obligations on the balance sheet of such person and all obligations and other liabilities (contingent or otherwise) under any lease or related document (including a purchase agreement) in connection with the lease of real property which provides that such person is contractually obligated to purchase or cause a third party to purchase the leased property and thereby guarantee a minimum residual value of the leased property to the lessor and the obligations of such person under such lease or related document to purchase or to cause a third party to purchase such leased property, (d) all obligations of such person (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement, (e) all direct or indirect guaranties or similar agreements by such person in respect of, and obligations or liabilities (contingent or otherwise) of such person to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of indebtedness, obligations or liabilities of another person of the kind described in clauses (a) through (d), (f) any indebtedness or other obligations described in clauses (a) through (e) secured by any mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such person, regardless of whether the indebtedness or other obligation secured thereby shall have been assumed by such person and (g) any and all refinancings, replacements, deferrals, renewals, extensions and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kind described in clauses (a) through (f).

 

“Indenture” means this Subordinated Debt Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

“Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, or otherwise.

 

“Officer” means the Chief Executive Officer, the President, any Vice President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company.

 

“OTS” means the Office of Thrift Supervision and any successor federal agency that is primarily responsible for regulating the activities of savings and loan holding companies.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Place of Payment”, when used with respect to the Securities of or within any Series, means the place or places where the principal of (and premium, if any) and interest, if any, on such Securities are payable as specified and as contemplated by Section 2.1.

 

“principal” or “principal amount” of a Security means the principal amount of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Representative” means the (a) indenture trustee or other trustee, agent or representative for any Senior Indebtedness or (b) with respect to any Senior Indebtedness that does not have any such trustee, agent or other representative, (i) in the case of such Senior Indebtedness issued pursuant to an agreement providing for voting arrangements as among the holders or owners of such Senior Indebtedness, any holder or owner of such Senior Indebtedness acting with the consent of the required persons necessary to bind such holders or owners of such Senior Indebtedness and (ii) in the case of all other such Senior Indebtedness, the holder or owner of such Senior Indebtedness.

 

3

 

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject, in each case, who has direct responsibility for the administration of this Indenture.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Senior Indebtedness” means the principal, premium, if any, interest, including any interest accruing after bankruptcy, Additional Amounts, if any, and rent or termination payment on or other amounts due on the Company’s current or future Indebtedness, whether created, incurred, assumed, guaranteed or in effect guaranteed by the Company, including any deferrals, renewals, extensions, refundings, amendments, modifications or supplements to the above. However, Senior Indebtedness does not include: (i) Indebtedness that expressly provides that it shall not be senior in right of payment to the Securities or expressly provides that it is on the same basis or junior in right of payment to the Securities; (ii) the Company’s Indebtedness to any of the Company’s Subsidiaries; and (iii) the Securities.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2.

 

“Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (b) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and which in the case of clauses (a) and (b) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

4

 

 

Section 1.2           Other Definitions.

 

	
			Term

				
			 

				
			Defined in Section

			
	
			“Bankruptcy Law”

				
			 

				
			6.1

			
	
			“Custodian”

				
			 

				
			6.1

			
	
			“Event of Default”

				
			 

				
			6.1

			
	
			“Legal Holiday”

				
			 

				
			10.7

			
	
			“mandatory sinking fund payment”

				
			 

				
			11.1

			
	
			“optional sinking fund payment”

				
			 

				
			11.1

			
	
			“Paying Agent”

				
			 

				
			2.4

			
	
			“Payment Blockage Notice”

				 	
			12.2

			
	
			“Registrar”

				
			 

				
			2.4

			
	
			“Service Agent”

				
			 

				
			2.4

			
	
			“successor person”

				
			 

				
			5.1

			

 

Section 1.3           Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4           Rules of Construction. Unless the context otherwise requires:

 

	 	
			(a)

				
			a term has the meaning assigned to it;

			

	 	
			(b)

				
			an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

			

	 	
			(c)

				
			references to “generally accepted accounting principles” and “GAAP” shall mean generally accepted accounting principles, consistently applied, in effect as of the time when and for the period as to which such accounting principles are to be applied;

			

	 	
			(d)

				
			“or” is not exclusive;

			

	 	
			(e)

				
			words in the singular include the plural, and in the plural include the singular; and

			

	 	
			(f)

				
			provisions apply to successive events and transactions.

			

 

Article II

THE SECURITIES

 

Section 2.1           Issuable in Series. The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, supplemental indenture or Officers’ Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters; provided that all Series of Securities shall be equally and ratably entitled to the benefits of this Indenture, but all Securities issued hereunder shall be subordinate and junior in right of payment, to the extent an in the manner set forth in Article XII, to all Senior Indebtedness of the Company.

 

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Section 2.2           Establishment of Terms of Series of Securities. At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Section 2.2(a) and either as to such Securities within the Series or as to the Series generally, in the case of Sections 2.2(b) through 2.2(q)) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture or an Officers’ Certificate:

 

	 	
			(a)

				
			the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

			

	 	
			(b)

				
			the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

			

	 	
			(c)

				
			any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

			

	 	
			(d)

				
			the date or dates on which the principal of the Securities of the Series is payable;

			

	 	
			(e)

				
			the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

			

	 	
			(f)

				
			the Place of Payment where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;

			

	 	
			(g)

				
			if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

			

	 	
			(h)

				
			the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

			

	 	
			(i)

				
			the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

			

	 	
			(j)

				
			if other than minimum denominations of $1,000 and any integral multiple in excess thereof, the denominations in which the Securities of the Series shall be issuable;

			

	 	
			(k)

				
			the forms of the Securities of the Series in bearer or fully registered form (and, if in fully registered form, whether the Securities will be issuable as Global Securities);

			

	 	
			(l)

				
			if other than the entire principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

			

	 	
			(m)

				
			the provisions, if any, relating to any lien, security or encumbrance provided for the Securities of the Series;

			

	 	
			(n)

				
			any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2;

			

	 	
			(o)

				
			any addition to or change in the covenants set forth in Article IV or V which applies to Securities of the Series;

			

	 	
			(p)

				
			any other terms of the Securities of the Series (which may modify or delete any provision of this Indenture insofar as it applies to such Series); and

			

	 	
			(q)

				
			any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein.

			

 

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All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate.

 

Section 2.3           Execution and Authentication.

 

Two Officers shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. Such a signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.4           Registrar and Paying Agent. The Company shall maintain, with respect to each Series of Securities, at the Place of Payment specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (the “Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (the “Registrar”) and where notices and demands (other than service of process) to or upon the Company in respect of the Securities of such Series and this Indenture may be served (the “Service Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands (other than any service of process).

 

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The Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Service Agent” includes any additional service agent.

 

The Company hereby appoints the Trustee as the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5           Paying Agent to Hold Money in Trust. The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

Section 2.6           Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7           Transfer and Exchange. Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Section 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business 15 days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8           Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (a) evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such security or satisfactory indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

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In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.9           Outstanding Securities. The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue (to the extent of the Maturity of such Security if less than the entire principal amount is due and payable on such date of Maturity).

 

A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10         Treasury Securities. In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

 

Section 2.11         Temporary Securities. Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and Stated Maturity in exchange for temporary Securities. Until so exchanged, temporary Securities shall have the same rights under this Indenture as the definitive Securities.

 

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Section 2.12         Cancellation. All Securities and coupons surrendered for payment, redemption, repayment at the option of the Holder, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Securities and coupons and Securities and coupons surrendered directly to the Trustee for any such purpose shall be promptly cancelled by the Trustee. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are surrendered to the Trustee for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. Cancelled Securities and coupons held by the Trustee shall be destroyed by the Trustee in accordance with its customary procedures. The Company by Company Order may direct the Trustee to deliver a certificate of such destruction to the Company.

 

Section 2.13         Defaulted Interest. If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date. At least 10 days before the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14         Global Securities.

 

	 	
			(a)

				
			Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global Security or Securities.

			

	 	
			(b)

				
			Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 for Securities registered in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository registered as a clearing agency under the Exchange Act within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

			

 

Except as provided in this Section 2.14(b), a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

	 	
			(c)

				
			Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

			

 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository. This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

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			(d)

				
			Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under this Indenture.

			

	 	
			(e)

				
			Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

			

	 	
			(f)

				
			Consents, Declaration and Directions. Except as provided in Section 2.14(e), the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

			

 

Section 2.15         CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

 

Article III

REDEMPTION

 

Section 3.1           Notice to Trustee. The Company may, with respect to any Series of Securities, reserve the right (subject to the receipt by the Company of prior approval (i) if the Company is a bank holding company, from the Federal Reserve, if then required under applicable capital guidelines or policies of the Federal Reserve or (ii) if the Company is a savings and loan holding company, from the OTS, if then required under applicable capital guidelines or policies of the OTS) to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice at least 45 days before the redemption date (or such shorter notice as may be acceptable to the Trustee).

 

Section 3.2           Selection of Securities to be Redeemed. Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if less than all the Securities of any Series issued on the same day with the same terms are to be redeemed, the particular Securities to be redeemed shall be selected not more than 45 days prior to the redemption date by the Trustee, from the Outstanding Securities of such Series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate, and, in the case of global Securities, in accordance with the procedures of the depositary; provided that such method complies with the rules of any national securities exchange or quotation system on which the Securities are listed, and may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that Series or any integral multiple thereof) of the principal amount of Securities of such Series of a denomination larger than the minimum authorized denomination for Securities of that Series; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Security not redeemed to less than the minimum authorized denomination for Securities of such Series.

 

The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.

 

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Notwithstanding the foregoing, if any Security to be redeemed is a Global Security then any partial redemption of that Series of Securities will be made in accordance with the Depository’s applicable procedures among all Holders of such Series of Securities.

 

Section 3.3           Notice of Redemption. Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed and, if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper.

 

The notice shall identify the Securities of the Series to be redeemed and shall state:

 

	 	
			(a)

				
			the redemption date;

			

	 	
			(b)

				
			the redemption price and accrued interest, if any, to the redemption date payable as provided;

			

	 	
			(c)

				
			the name and address of the Paying Agent;

			

	 	
			(d)

				
			that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

			

	 	
			(e)

				
			that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

			

	 	
			(f)

				
			the CUSIP number, if any;

			

	 	
			(g)

				
			any conditions precedent that must be satisfied prior to the redemption; and

			

	 	
			(h)

				
			any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

			

 

At the Company’s request given at least five Business Days prior to the date such notice is given to Holders, the Trustee shall give the notice of redemption in the Company’s name and at its expense.

 

Section 3.4           Effect of Notice of Redemption. Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price, subject to, with respect to any redemption that is conditioned upon the satisfaction of any conditions precedent, (i) the delay of such redemption date until such time as any or all of such conditions precedent have been satisfied or (ii) the revocation of such redemption if the Company determines that such conditions precedent will not be satisfied. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to, but excluding, the redemption date; provided that installments of interest whose Stated Maturity is on or prior to the redemption date shall be payable to the Holders of such Securities (or one or more predecessor Securities) registered at the close of business on the relevant record date therefor according to their terms and the terms of this Indenture.

 

Section 3.5           Deposit of Redemption Price. On or before the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.6           Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

Article IV

COVENANTS

 

Section 4.1           Payment of Principal and Interest. The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2           SEC Reports. The Company shall deliver to the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officers’ Certificate).

 

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Section 4.3           Compliance Certificate. The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4           Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

Section 4.5           Corporate Existence. Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the rights (charter and statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right, license or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.

 

Section 4.6           Taxes. The Company shall pay prior to delinquency all taxes, assessments and governmental levies, except as contested in good faith and by appropriate proceedings.

 

Article V

SUCCESSORS

 

Section 5.1           When Company May Merge, Etc. The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”), nor shall the Company permit any other person to consolidate with or merge into it or convey, transfer or lease all or substantially all of its properties and assets to it, in either case unless:

 

	 	
			(a)

				
			the Company is the surviving corporation or the successor person (if other than the Company) is a corporation organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this Indenture; and

			

	 	
			(b)

				
			immediately after giving effect to the transaction, and treating any indebtedness that becomes the obligation of the Company or any of its Subsidiaries as having been incurred at the effective date of such transaction no Default or Event of Default shall have occurred and be continuing.

			

 

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The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

 

Section 5.2           Successor Corporation Substituted. Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

 

Article VI

DEFAULTS AND REMEDIES

 

Section 6.1           Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

	 	
			(a)

				
			default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of 30 days);

			

	 	
			(b)

				
			default in the payment of principal of any Security of that Series at its Maturity;

			

	 	
			(c)

				
			default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series;

			

	 	
			(d)

				
			default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty for which the consequences of nonperformance or breach are addressed elsewhere in this Section 6.1 and other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default or breach continues uncured or unwaived in accordance with the provisions of this Indenture for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of not less than 25.0% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

			

	 	
			(e)

				
			the Company pursuant to or within the meaning of any Bankruptcy Law:

			

	 	
			i.

				
			commences a voluntary case,

			

	 	
			ii.

				
			consents to the entry of an order for relief against it in an involuntary case,

			

	 	
			iii.

				
			consents to the appointment of a Custodian of it or for all or substantially all of its property,

			

	 	
			iv.

				
			makes a general assignment for the benefit of its creditors, or

			

	 	
			v.

				
			generally is unable to pay its debts as the same become due; or

			

	 	
			(f)

				
			a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

			

	 	
			i.

				
			is for relief against the Company in an involuntary case,

			

	 	
			ii.

				
			appoints a Custodian of the Company or for all or substantially all of its property, or

			

	 	
			iii.

				
			orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

			

	 	
			(g)

				
			any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2(n).

			

 

The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

14

 

 

Section 6.2           Acceleration of Maturity; Rescission and Annulment. Except to the extent provided otherwise in the establishing Board Resolution, supplemental indenture or Officers’ Certificate for such Series, if an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(e) or 6.1(f)), then in every such case the Trustee or the Holders of not less than 25.0% in aggregate principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or portion thereof) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.1(e) or 6.1(f) shall occur, the principal amount (or portion thereof) of and accrued and unpaid interest, if any, on all outstanding Securities shall automatically become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.

 

No such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

Section 6.3           Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants that if:

 

	 	
			(a)

				
			default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days,

			

	 	
			(b)

				
			default is made in the payment of principal of any Security at the Maturity thereof, or

			

	 	
			(c)

				
			default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

			

 

then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

15

 

 

Section 6.4           Trustee may File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.5           Trustee may Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6           Application of Money Collected. Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

First: To the payment of all amounts due the Trustee under Section 7.7; and

 

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third: To the Company.

 

Section 6.7           Limitation on Suits. No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

	 	
			(a)

				
			such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

			

	 	
			(b)

				
			the Holders of not less than 25.0% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

			

	 	
			(c)

				
			such Holder or Holders have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

			

	 	
			(d)

				
			the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

			

	 	
			(e)

				
			no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

			

 

16

 

 

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.8           Unconditional Right of Holders to Receive Principal and Interest. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.9           Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10         Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11         Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12         Control by Holders. The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series; provided that:

 

	 	
			(a)

				
			such direction shall not be in conflict with any rule of law or with this Indenture;

			

	 	
			(b)

				
			the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and

			

	 	
			(c)

				
			the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.

			

 

Section 6.13         Waiver of Past Defaults. The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default (a) in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration) or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each outstanding Security of such Series affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

17

 

 

Section 6.14         Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

Article VII

TRUSTEE

 

Section 7.1           Duties of Trustee.

 

	 	
			(a)

				
			If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of their own affairs.

			

	 	
			(b)

				
			Except during the continuance of an Event of Default:

			

	 	
			i.

				
			The Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee. The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within its rights or powers. The Trustee is not required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture. The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

			

	 	
			ii.

				
			In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture.

			

	 	
			(c)

				
			The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, its own bad faith or its own willful misconduct, except that:

			

	 	
			i.

				
			This paragraph does not limit the effect of paragraph (b) of this Section.

			

	 	
			ii.

				
			The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

			

	 	
			iii.

				
			The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

			

	 	
			(d)

				
			Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section.

			

	 	
			(e)

				
			The Trustee may refuse to perform any duty or exercise any right or power at the request or direction of any Holder unless it receives security or indemnity satisfactory to it against any loss, liability or expense.

			

	 	
			(f)

				
			The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

			

	 	
			(g)

				
			No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or satisfactory indemnity against such risk is not assured to it.

			

 

18

 

 

	 	
			(h)

				
			The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and standard of care as are set forth in paragraphs (b) and (c) of this Section with respect to the Trustee.

			

 

Section 7.2           Rights of Trustee.

 

	 	
			(a)

				
			The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

			

	 	
			(b)

				
			Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate, an Opinion of Counsel, or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate and/or Opinion of Counsel.

			

	 	
			(c)

				
			The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depository.

			

	 	
			(d)

				
			The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute negligence or willful misconduct.

			

	 	
			(e)

				
			The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

			

	 	
			(f)

				
			The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon.

			

	 	
			(g)

				
			The Trustee may conclusively rely upon and shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

			

	 	
			(h)

				
			The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

			

	 	
			(i)

				
			Delivery of reports, information and documents (including, without limitation, reports contemplated in this Section) to the Trustee is for information purposes only, and the Trustee’s receipts thereof shall not constitute actual or constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with covenants under this Indenture, Securities, and guarantees (if any), as to which the Trustee is entitled to rely exclusively on Officers’ Certificates.

			

	 	
			(j)

				
			The Trustee shall have no responsibility for monitoring the Company’s compliance with any of its covenants under this Indenture.

			

	 	
			(k)

				
			The Trustee shall not be responsible or liable for punitive, special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of actions.

			

	 	
			(l)

				
			Any permissive right of the Trustee to take or refrain from taking actions enumerated in this Indenture shall not be construed as a duty.

			

	 	
			(m)

				
			The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunction of utilities, computer (hardware or software) or communication services; accidents; labor disputes; and acts of civil or military authorities and governmental action.

			

 

19

 

 

	 	
			(n)

				
			The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of any Series, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

			

 

Section 7.3           Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.4           Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5           Notice of Defaults. If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

 

Section 7.6           Reports by Trustee to Holders. Within 60 days after September 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of such September 15, in accordance with, and to the extent required under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange, if any, on which the Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

 

Section 7.7           Compensation and Indemnity. The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable expenses incurred by it. Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify each of the Trustee and any predecessor Trustee (including the cost of defending itself) against any loss, liability, claim (including any between the parties to this Indenture), suit or expense, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee to the extent of its negligence or willful misconduct.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.

 

20

 

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(e) or 6.1(f) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section shall survive the resignation or removal of the Trustee and the termination of this Indenture.

 

Section 7.8           Replacement of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company. The Company may remove the Trustee with respect to Securities of one or more Series if:

	 	
			(a)

				
			the Trustee fails to comply with Section 7.10;

			

	 	
			(b)

				
			the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

			

	 	
			(c)

				
			a Custodian or public officer takes charge of the Trustee or its property; or

			

	 	
			(d)

				
			the Trustee becomes incapable of acting.

			

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper. Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9           Successor Trustee by Merger, Etc. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another person, the successor person without any further act shall be the successor Trustee.

 

Section 7.10         Eligibility; Disqualification. This Indenture shall always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b).

 

Section 7.11         Referential Collection of Claims Against Company. The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

21

 

 

Article VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1           Satisfaction and Discharge of Indenture. This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

	 	
			(a)

				
			either:

			

	 	
			i.

				
			all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

			

	 	
			ii.

				
			all such Securities not theretofore delivered to the Trustee for cancellation

			

	 	
			(1)

				
			have become due and payable, or

			

	 	
			(2)

				
			will become due and payable at their Stated Maturity within one year, or

			

	 	
			(3)

				
			are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company; or

			

	 	
			(4)

				
			are deemed paid and discharged pursuant to Section 8.3, as applicable;

			

 

and the Company, in the case of clauses (1), (2) and (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

	 	
			(b)

				
			the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

			

	 	
			(c)

				
			the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

			

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall survive.

 

Section 8.2           Application of Trust Funds; Indemnification.

 

	 	
			(a)

				
			Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (other than the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Section 8.3 or 8.4.

			

	 	
			(b)

				
			The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations deposited pursuant to Section 8.3 or 8.4 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

			

	 	
			(c)

				
			The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or money held by it as provided in Section 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations held under this Indenture.

			

 

22

 

 

Section 8.3           Legal Defeasance of Securities of any Series. Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2(p), to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 90th day after the date of the deposit referred to in subparagraph (c) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

	 	
			(a)

				
			the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (c) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

			

	 	
			(b)

				
			the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3, and 8.5; and

			

	 	
			(c)

				
			the rights, powers, trust and immunities of the Trustee hereunder; provided that, the following conditions shall have been satisfied:

			

	 	
			i.

				
			the Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities, cash in Dollars and/or U.S. Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a regionally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

			

	 	
			ii.

				
			such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

			

	 	
			iii. 

				
			no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 90th day after such date;

			

	 	
			iv. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amounts and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

			

	 	
			v. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

			

	 	
			vi. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

			

 

23

 

 

Section 8.4           Covenant Defeasance. Unless this Section 8.4 is otherwise specified pursuant to Section 2.2(p) to be inapplicable to Securities of any Series, on and after the 91st day after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.6, and 5.1 as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2(p) (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2(n) and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series; provided that the following conditions shall have been satisfied:

 

	 	
			(a)

				
			With reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, cash in Dollars and/or U.S. Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a regionally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

			

	 	
			(b)

				
			Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

			

	 	
			(c)

				
			No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 90th day after such date;

			

	 	
			(d)

				
			The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred; and

			

	 	
			(e)

				
			The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with.

			

 

Section 8.5           Repayment to Company. The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for six months. After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

Article IX

AMENDMENTS AND WAIVERS

 

Section 9.1           Without Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder by indentures supplemental hereto:

 

	 	
			(a)

				
			to cure any ambiguity, defect or inconsistency;

			

	 	
			(b)

				
			to comply with Article V;

			

	 	
			(c)

				
			to evidence the succession of another corporation to the Company, or successive successions, pursuant to Article XI, and the assumption by the successor corporation of the covenants, agreements and obligations of the Company herein and in the Securities;

			

	 	
			(d)

				
			to add to the covenants of the Company such further covenants, restrictions, conditions or provisions as its Board of Directors shall consider to be for the protection of the holders of Securities, and to make the occurrence, or the occurrence and continuance, of a default in any of such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth, with such period of grace, if any, and subject to such conditions as such supplemental indenture may provide;

			

 

24

 

 

	 	
			(e)

				
			to add to or change any of the provisions of this Indenture to provide that Bearer Securities may be registrable as to principal, to change or eliminate any restrictions on the payment of principal of or any premium or interest on Bearer Securities, to permit Bearer Securities to be issued in exchange for Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer Securities of other authorized denominations or to permit or facilitate the issuance of Securities in uncertificated form; provided that any such action shall not adversely affect the interests of the holders of Securities of any Series or any related coupons in any material respect;

			

	 	
			(f)

				
			to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA, or under any similar federal statute hereafter enacted, and to add to this Indenture such other provisions as may be expressly permitted by the TIA, excluding however, the provisions referred to in Section 316(a)(2) of the TIA or any corresponding provision in any similar federal statute hereafter enacted;

			

	 	
			(g)

				
			to add any additional Events of Default (and if such Events of Default are to be for the benefit of less than all Series of Securities, stating that such are expressly being included solely for the benefit of such Series);

			

	 	
			(h)

				
			to modify, eliminate or add to any of the provisions of this Indenture; provided that any such change or elimination (i) shall become effective only when there is no Security of any Series Outstanding and created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision or (ii) shall not apply to any Security Outstanding;

			

	 	
			(i)

				
			to provide for uncertificated Securities in addition to or in place of certificated Securities;

			

	 	
			(j)

				
			to make any change that does not adversely affect the rights of any Securityholder;

			

	 	
			(k)

				
			to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

			

	 	
			(l)

				
			to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or

			

	 	
			(m)

				
			to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

			

 

Section 9.2           With Consent of Holders. The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this Section becomes effective, the Company shall mail to the Holders of Securities affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.3           Limitations. Without the consent of each Securityholder affected, an amendment or waiver may not:

 

	 	
			(a)

				
			reduce the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

			

	 	
			(b)

				
			reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

			

	 	
			(c)

				
			reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

			

	 	
			(d)

				
			reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

			

	 	
			(e)

				
			waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

			

 

25

 

 

	 	
			(f)

				
			make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

			

	 	
			(g)

				
			make any change in Section 6.8, 6.13, or 9.3 (this sentence); or

			

	 	
			(h)

				
			waive a redemption payment with respect to any Security.

			

 

Section 9.4           Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5           Revocation and Effect of Consents. Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.6           Notation on or Exchange of Securities. The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7           Trustee Protected. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an Officers’ Certificate and Opinion of Counsel stating that all conditions precedent have been satisfied, the execution of such supplemental indenture is authorized or permitted by this Indenture and that such supplemental indenture is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects it.

 

Article X

MISCELLANEOUS

 

Section 10.1         Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.2         Notices. Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed by first-class mail:

 

if to the Company:

 

FNCB Bancorp, Inc.

102 East Drinker Street

Dunmore, Pennsylvania 18512

Attention: James M. Bone, Jr., CPA

Telephone: (570) 346-7667

 

26

 

 

if to the Trustee:

 

Wilmington Trust, National Association

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: FNCB Bancorp, Inc. Administrator

Telephone: (302) 636-6398

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding, published in an Authorized Newspaper. Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the Company mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time. Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event or any other communication (including any notice of redemption or repurchase) to a Securityholder of a Security (whether by mail or otherwise), such notice shall be sufficiently given if given to Depository (or its designee) pursuant to the applicable procedures from Depository or its designee, including by electronic mail in accordance with accepted practices at Depository.

 

Section 10.3         Communication by Holders with Other Holders. Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.4         Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

	 	
			(a)

				
			an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

			

	 	
			(b)

				
			an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

			

 

Section 10.5         Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

	 	
			(a)

				
			a statement that the person making such certificate or opinion has read such covenant or condition;

			

	 	
			(b)

				
			a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

			

	 	
			(c)

				
			a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

			

	 	
			(d)

				
			a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

			

 

Section 10.6         Rules by Trustee and Agents. The Trustee may make reasonable rules for action by, or a meeting of, Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

27

 

 

Section 10.7         Legal Holidays. Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.8         No Recourse Against Others. A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.9         Counterparts. This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Indenture and of signature pages by facsimile or electronic format (e.g., “.pdf” or “.tif”) transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic format (e.g., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes.

 

Section 10.10         Governing Laws. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 10.11         No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12         Successors. All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13         Severability. In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 10.14         Table of Contents, Headings, Etc. The Table of Contents, Cross-Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Article XI

SINKING FUNDS

 

Section 11.1         Applicability of Article. The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

28

 

 

Section 11.2         Satisfaction of Sinking Fund Payments with Securities. The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (a) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (b) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment; provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 11.3         Redemption of Securities for Sinking Fund. Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

Article XII

SUBORDINATION OF SECURITIES

 

Section 12.1         Agreement of Subordination. The Company covenants and agrees, and each Holder of Securities issued hereunder by accepting a Security likewise covenants and agrees, that all Securities shall be issued subject to the provisions of this Article XII; and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees to be bound by such provisions.

 

The payment of the principal of and interest on all Securities (including, but not limited to, the redemption price with respect to the Securities called for redemption in accordance with Article III as provided in this Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred.

 

No provision of this Article XII shall prevent the occurrence of any Default or Event of Default hereunder.

 

Section 12.2         Payments to Holders. Except as otherwise provided in a supplemental indenture, no payment shall be made with respect to the principal of or interest on the Securities (including, but not limited to, the redemption price with respect to the Securities to be called for redemption in accordance with Article III as provided in this Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 12.5, if:

 

29

 

 

	 	
			(a)

				
			a default in the payment of principal, premium, interest, rent or other obligations due on any Senior Indebtedness occurs and is continuing (or, in the case of Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or lease evidencing such Senior Indebtedness) (a “payment default”), unless and until such default shall have been cured or waived or shall have ceased to exist; or

			

	 	
			(b)

				
			a default, other than a payment default, on a Designated Senior Indebtedness occurs and is continuing that then permits holders of such Designated Senior Indebtedness to accelerate its maturity and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from a Representative or the Company.

			

 

If the Trustee receives any Payment Blockage Notice pursuant to clause (b) above, no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until (A) at least 365 days shall have elapsed since the initial effectiveness of the immediately prior Payment Blockage Notice, and (B) all scheduled payments of principal, premium, if any, and interest on the Securities that have come due have been paid in full in cash. No non-payment default that existed or was continuing on the date of delivery of any Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice.

 

The Company may and shall resume payments on and distributions in respect of the Securities upon the earlier of:

	 	
			(1)

				
			the date upon which the applicable default is cured or waived or ceases to exist, or

			

	 	
			(2)

				
			in the case of a default referred to in clause (b) above, 179 days pass after notice is received if the maturity of such Designated Senior Indebtedness has not been accelerated, unless this Article XII otherwise prohibits the payment or distribution at the time of such payment or distribution.

			

 

Upon any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, all amounts due or to become due upon all Senior Indebtedness shall first be paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or payment thereof in accordance with its terms provided for in cash or other payment satisfactory to the holders of such Senior Indebtedness, before any payment is made on account of the principal of or interest on the Securities (except payments made pursuant to Article VI from monies deposited with the Trustee pursuant thereto prior to commencement of proceedings for such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or winding-up or liquidation or reorganization of the Company or bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee would be entitled, except for the provision of this Article XII, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Holders of the Securities or by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, or as otherwise required by law or a court order) or their Representative or Representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full, in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment or distribution or provision therefor is made to the Holders of the Securities or to the Trustee.

 

For purposes of this Article XII, the words, “cash, property or securities” shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other person provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article XII with respect to the Securities to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior Indebtedness is assumed by the new person, if any, resulting from any reorganization or readjustment, and (ii) the rights of the holders of Senior Indebtedness (other than leases which are not assumed by the Company or the new person, as the case may be) are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Company with, or the merger of the Company into, another person or the liquidation or dissolution of the Company following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another person upon the terms and conditions provided for in Article V shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 12.2 if such other person shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in Article V.

 

30

 

 

In the event of the acceleration of the Securities because of an Event of Default, no payment or distribution shall be made to the Trustee or any Holder of Securities in respect of the principal of or interest on the Securities (including, but not limited to, the redemption price with respect to the Securities called for redemption in accordance with Article III as provided in this Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 12.5, until all Senior Indebtedness has been paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance with the terms of this Indenture. If payment of the Securities is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of the acceleration at the address set forth in the notice from the Agent (or successor agent) to the Trustee as being the address to which the Trustee should send its notice pursuant to this Section 12.2, unless there are no payment obligations of the Company thereunder and all obligations thereunder to extend credit have been terminated or expired.

 

In the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities (including, without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or provision is made for such payment thereof in accordance with its terms in cash or other payment satisfactory to the holders of such Senior Indebtedness, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders of Senior Indebtedness or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness.

 

 Nothing in this Section 12.2 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.7. This Section 12.2 shall be subject to the further provisions of Section 12.5.

 

Section 12.3         Subrogation of Securities. Subject to the payment in full of all Senior Indebtedness, the rights of the Holders of the Securities shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Indebtedness pursuant to the provisions of this Article XII (equally and ratably with the holders of all Indebtedness of the Company which by its express terms is subordinated to other Indebtedness of the Company to substantially the same extent as the Securities are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal and interest on the Securities shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or securities to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article XII, and no payment over pursuant to the provisions of this Article XII, to or for the benefit of the holders of Senior Indebtedness by Holders of the Securities or the Trustee, shall, as between the Company, its creditors other than holders of Senior Indebtedness, and the Holders of the Securities, be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or distributions of cash, property or securities to or for the benefit of the Holders of the Securities pursuant to the subrogation provisions of this Article XII, which would otherwise have been paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company to or for the account of the Securities. It is understood that the provisions of this Article XII are and are intended solely for the purposes of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

 

31

 

 

Nothing contained in this Article XII or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal of (and premium, if any) and interest on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XII of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy.

 

Upon any payment or distribution of assets of the Company referred to in this Article XII, the Trustee, subject to the provisions of Section 7.1, and the Holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders of the Securities, for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon and all other facts pertinent thereto or to this Article XII.

 

Section 12.4         Authorization to Effect Subordination. Each Holder of a Security by the holder’s acceptance thereof authorizes and directs the Trustee on the holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article XII and appoints the Trustee to act as the holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in Section 6.3 hereof at least 30 days before the expiration of the time to file such claim, the holders of any Senior Indebtedness or their representatives are hereby authorized to file an appropriate claim for and on behalf of the Holders of the Securities.

 

Section 12.5         Notice to Trustee. The Company shall give prompt written notice in the form of an Officers’ Certificate to a Responsible Officer of the Trustee and to any paying agent of any fact known to the Company which would prohibit the making of any payment of monies to or by the Trustee or any paying agent in respect of the Securities pursuant to the provisions of this Article XII. Notwithstanding the provisions of this Article XII or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions of this Article XII, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company (in the form of an Officers’ Certificate) or a Representative or a holder or holders of Senior Indebtedness or from any trustee thereof; and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 7.1, shall be entitled in all respects to assume that no such facts exist; provided that if on a date not fewer than two Business Days prior to the date upon which by the terms hereof any such monies may become payable for any purpose (including, without limitation, the payment of the principal of, or premium, if any, or interest on any Security) the Trustee shall not have received, with respect to such monies, the notice provided for in this Section 12.5, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date.

 

Notwithstanding anything in this Article XII to the contrary, nothing shall prevent any payment by the Trustee to the Holders of monies deposited with it pursuant to Section 8.1, and any such payment shall not be subject to the provisions of Section 12.1 or 12.2.

 

The Trustee, subject to the provisions of Section 7.1, shall be entitled to rely on the delivery to it of a written notice by a Representative or a person representing himself or herself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such notice has been given by a Representative or a holder of Senior Indebtedness or a trustee on behalf of any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XII, the Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such person, the extent to which such person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such person under this Article XII, and if such evidence is not furnished the Trustee may defer any payment to such person pending judicial determination as to the right of such person to receive such payment.

 

32

 

 

Section 12.6         Trustee’s Relation to Senior Indebtedness. The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article XII in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in Section 7.11 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article XII shall apply to the Company’s obligations to the Trustee under Section 7.7.

 

With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article XII, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 7.1, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay over or deliver to Holders of Securities, the Company or any other person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article XII or otherwise.

 

Section 12.7         No Impairment of Subordination. No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with.

 

Section 12.8         Article Applicable to Paying Agents. If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article shall (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Trustee; provided, however, that the first paragraph of Section 12.5 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

 

Section 12.9         Senior Indebtedness Entitled to Rely. The holders of Senior Indebtedness (including, without limitation, Designated Senior Indebtedness) shall have the right to rely upon this Article XII, and no amendment or modification of the provisions contained herein shall diminish the rights of such holders unless such holders shall have agreed in writing thereto.

 

[Signature page follows]

 

33

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	
			 

				
			FNCB BANCORP, INC.

			
	
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			 

			
	
			 

				
			 

				
			Name:

			
	
			 

				
			 

				
			Title:

			
	
			 

				
			 

			
	
			 

				
			WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee

			
	
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			 

			
	
			 

				
			 

				
			Name:

			
	
			 

				
			 

				
			Title:Exhibit 4.2

 

EXECUTION VERSION

 

THIRD AMENDMENT AND RESTATEMENT AGREEMENT

 

DATED 14 June 2018

 

 

 

relating to a

 

 

 

TERM FACILITY AGREEMENT
  dated 20 May 2013 as amended and restated pursuant to amendment and restatement agreements dated 11 August 2014 and 15 May 2015, an amendment letter dated 26 June 2015 and an amendment letter dated 11 September 2015

 

between

 

 

RED FOOTBALL LIMITED

as Company

 

MU FINANCE PLC

as Original Borrower

 

MANCHESTER UNITED FOOTBALL CLUB LIMITED

as Acceding Borrower

 

 

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED

as Agent

 

and

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED

as Lender

 

 

 

 

 

 

McGuireWoods London LLP

11 Pilgrim Street

London   EC4V 6RN

DX 249 London/Chancery Lane

Tel: 020 7632 1600

Fax: 020 7632 1638

 

 

TABLE OF CONTENTS

 

	
Clause No.
    	
 
    	
Page No.
    
	
 
    	
 
    	
 
    
	
1
    	
INTERPRETATION
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
RESIGNATION AND   APPOINTMENT OF AGENT
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
AMENDMENTS TO AND   RESTATEMENT OF THE FACILITY AGREEMENT
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
REPRESENTATIONS AND   WARRANTIES
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
EXPENSES
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
CONDITIONS PRECEDENT
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
CONSENT OF THE   GUARANTORS
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
MISCELLANEOUS
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
10
    	
THIRD PARTY RIGHTS
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
GOVERNING LAW
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE   1 - Conditions Precedent to the Effective Date
    	
 
    	
8
    
	
 
    	
 
    	
 
    
	
SCHEDULE   2 - Amended and Restated Facility Agreement
    	
 
    	
10
    

 

 

This THIRD AMENDMENT AND RESTATEMENT AGREEMENT (“Third Amendment and Restatement Agreement”) is made the 14 June 2018 among:

 

(1)                                 RED FOOTBALL LIMITED (registration number 5370076) (the “Company”);

 

(2)                                 MU FINANCE PLC (registration number 07088267) (the “Original Borrower”);

 

(3)                                 MANCHESTER UNITED FOOTBALL CLUB LIMITED (registration number 00095489) (“MUFC” or the “Acceding Borrower”);

 

(2)                                 BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED (the “Agent”); and

 

(3)                                 BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED (the “Lender”).

 

BACKGROUND:

 

(A)                                        By a term facility agreement dated 20 May 2013 (the “Original Facility Agreement”) between the Company, the Original Agent and Bank of America, N.A. as the Original Lender, the Original Lender agreed to make available a term facility to MU Finance plc, as Borrower, on the terms and conditions set out in the Original Facility Agreement.

 

(B)                                        Pursuant to an amendment and restatement agreement dated 11 August 2014 and an amendment and restatement agreement dated 15 May 2015 the parties amended and restated the Original Facility Agreement and pursuant to an amendment letter dated 26 June 2015 and an amendment letter dated 11 September 2015 the parties made further amendments to the Original Facility Agreement (the Original Facility Agreement as amended and restated and subsequently amended being the “Facility Agreement”).

 

(C)                                        Pursuant to Clause 2.3 (Obligors’ Agent) of the Facility Agreement, each Obligor (other than the Company) irrevocably appointed the Company to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorised the Company to effect amendments, supplements and variations to the Finance Documents notwithstanding that they may affect an Obligor, without further reference to or the consent of that Obligor.

 

(D)                                        The parties wish to amend and restate the Facility Agreement to allow for Manchester United Football Club Limited to accede as a Borrower under the Facility Agreement and for the Original Borrower to resign as a Borrower under the Facility Agreement.

 

1

 

IT IS AGREED as follows:

 

1.                                               INTERPRETATION

 

1.1                                        Terms defined

 

In this Third Amendment and Restatement Agreement:

 

1.1.1                               Unless defined in this Third Amendment and Restatement Agreement, a term defined in the Restated Facility Agreement has the same meaning in this Third Amendment and Restatement Agreement.

 

1.1.2                               “Debt Transfer” means the novation of the Facility to the Acceding Borrower by the Original Borrower in compliance with the requirements of Clause 2 (Debt transfer).

 

1.1.3                               “Effective Date” means the date on which the Agent provides the confirmation pursuant to Clause 6 (Conditions Precedent) below.

 

1.1.4                               “Novation Certificate” means a document substantially in the form set out in Schedule 3 (Form of Novation Certificate).

 

1.1.5                               “Restated Facility Agreement” means the Facility Agreement as amended and restated in the form set out in Schedule 2 (Amended and Restated Facility Agreement) (subject to any further amendments and changes made after the date of this Third Amendment and Restatement Agreement mutually agreed between the Lender and the Agent).

 

References in the Facility Agreement to “this Agreement”, “hereof”, “hereunder” and expressions of similar import shall be deemed to be references to the Facility Agreement (as amended and restated by this Third Amendment and Restatement Agreement) and to this Third Amendment and Restatement Agreement.

 

1.2                                        Interpretation

 

1.2.1                               “Bank of America Merrill Lynch International Limited” is a reference to its successor in title Bank of America Merrill Lynch International Designated Activity Company (including, without limitation, its branches) pursuant to and with effect from the merger between Bank of America Merrill Lynch International Limited and Bank of America Merrill Lynch International Designated Activity Company that takes effect in accordance with Chapter II, Title II of Directive (EU) 2017/1132 (which repeals and codifies the Cross-Border Mergers Directive (2005/56/EC)), as implemented in the United Kingdom and Ireland.  Notwithstanding anything to the contrary in this Agreement and the Restated Facility Agreement, a transfer of rights and obligations

 

 

from Bank of America Merrill Lynch International Limited to Bank of America Merrill Lynch International Designated Activity Company pursuant to such merger shall be permitted without requiring the consent of the Company.

 

1.2.2                               Unless otherwise expressly stated herein, in this Third Amendment and Restatement Agreement a reference to a “Clause” or a “Schedule” is a reference to a Clause or a Schedule, as the case may be, in or of this Third Amendment and Restatement Agreement. Headings are for convenience only and shall not affect the construction of this Third Amendment and Restatement Agreement.

 

1.2.3                               The whole terms and conditions of Clause 1.2 (Construction) of the Restated Facility Agreement shall apply, mutatis mutandis, to this Third Amendment and Restatement Agreement.

 

1.2.4                               It is agreed that each of this Third Amendment and Restatement Agreement and the Restated Facility Agreement are Finance Documents.

 

2.                                               DEBT TRANSFER

 

2.1                                        With immediate effect on and from the Effective Date, the Acceding Borrower shall be entitled to borrow an amount equal to all or any part of the Facility previously advanced and then outstanding to the Original Borrower for application in the manner contemplated by this Clause 2.

 

2.2                                        Subject to compliance with the terms of this Clause 2 and Clause 4.2 (Further conditions precedent) of the Restated Facility Agreement and provided that the Effective Date has occurred, the Agent, on behalf of the Lender, the Original Borrower and the Acceding Borrower shall execute a Novation Certificate to novate (the “Novation”) a principal amount of the entire (and not part) of the Facility from the Original Borrower to the Acceding Borrower in such an amount (the “Novated Loan”) (which Novation shall be effected by the Agent by way of book entries and not physical cash movements) such that, immediately following the Novation, the aggregate principal amount borrowed by the Original Borrower under the Facility as a share of the total principal amount of the Loans, is equal to nil and the aggregate principal amount borrowed by the Acceding Borrower under the Facility as a share of the total principal amount of the Loan is equal to the Total Commitments then outstanding.  The Lender’s participation in the Novation Loan shall be equal to its pro rata share of the aggregate principal amount of the Loans.

 

2.3                                        The Lender irrevocably authorises and instructs the Agent to execute a Novation Certificate complying with this Clause 2 on its behalf. Following any Novation pursuant to this Clause 2 the Agent shall notify the Original Borrower, the Acceding Borrower and the Lender and provide

 

 

details of the Loans which will be outstanding on and from the Novation Date (as defined in the Novation Certificate).

 

2.4                                        No Break Costs or fees will be payable to any Finance Party in respect of any Novation.

 

2.5                                        No transfer or novation of any Novated Loan pursuant to this Clause 2 shall constitute a repayment or prepayment for the purposes of the Restated Facility Agreement and the provisions of Clause 15.3 (No reborrowing of Facility) of the Restated Facility Agreement shall not apply to the Novated Loan.

 

2.6                                        The Novation is effected in accordance with Clause 2.7 below when the Agent, the Original Borrower and the Acceding Borrower have executed a duly completed Novation Certificate.

 

2.7                                        On the Novation Date:

 

2.7.1                               each of the Lender and the Original Borrower shall be released from further obligations towards one another under the Finance Documents in respect of the Original Borrower’s capacity as Borrower under the Novated Loans and their respective rights against one another under the Finance Documents in respect of the Novated Loans shall be cancelled (the “Discharged Rights and Obligations”);

 

2.7.2                               each of the Lender and the Acceding Borrower shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as the Lender and the Acceding Borrower have assumed and/or acquired the same in place of the Lender and the Original Borrower (as the case may be); and

 

2.7.3                               the Obligors and the Acceding Borrower shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the Acceding Borrower been an original borrower of the Novated Loans with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Obligors and the Original Borrower shall each be released from further obligations to each other under the Finance Documents in respect of the Novated Loans.

 

2.8                                        On completion of the Debt Transfer, the Original Borrower shall resign as a Borrower with immediate effect upon service of a Resignation Letter on the Agent in compliance with Clause 33.3 (Resignation of a Borrower) of the Restated Facility Agreement.

 

 

3.                                               AMENDMENTS TO AND RESTATEMENT OF THE FACILITY AGREEMENT

 

3.1                                        With effect on and from the Effective Date the Facility Agreement shall be amended and restated in the form set out in Schedule 2 (Amended and Restated Facility Agreement) (subject to any further amendments and changes made after the date of this Third Amendment and Restatement Agreement mutually agreed between the Lender and the Agent) so that the rights and obligations of the parties to this Third Amendment and Restatement Agreement relating to their performance on and after the Effective Date under the Facility Agreement shall be governed by, and construed in accordance with, the terms of the Restated Facility Agreement.

 

3.2                                        The Facility Agreement is amended only to the extent set out in this Third Amendment and Restatement Agreement. In all other respects the terms of the Finance Documents remain in full force and effect.

 

3.3                                        The parties to this Third Amendment and Restatement Agreement agree that, with effect on and from the Effective Date, they shall have the rights and take on the obligations ascribed to them under the Restated Facility Agreement.

 

4.                                               REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants to the Agent that the Repeating Representations are true and accurate in all respects (or, in the case of such Repeating Representations which are not otherwise subject to a materiality threshold or qualification in accordance with their terms, are correct in all material respects) as at the date of this Third Amendment and Restatement Agreement and as at the Effective Date.

 

5.                                               EXPENSES

 

The Company shall reimburse the Agent promptly on demand for all reasonable charges and expenses (including, without limitation, the fees and expenses of legal advisors (subject to an agreed cap in writing (if any)) which are incurred by the Agent in connection with this Third Amendment and Restatement Agreement, the Restated Facility Agreement and the arrangements contemplated thereby, whether or not the Effective Date occurs.

 

6.                                               CONDITIONS PRECEDENT

 

6.1                                        The provisions of Clause 2 (Debt Transfer) and Clause 3 (Amendments to and Restatement of the Facility Agreement) of this Third Amendment and Restatement Agreement shall come into effect on the Effective Date when the Agent has confirmed in writing to the Company that (i) it has received or (ii) it has waived the requirement to receive, unless stated otherwise in form and

 

 

substance satisfactory to the Agent (acting reasonably), all of the documents and evidence referred to in Schedule 1 (Conditions Precedent to the Effective Date) to this Third Amendment and Restatement Agreement.  The Agent shall provide such confirmation to the Company and the Lender promptly upon being so satisfied.

 

6.2                                        If the Effective Date does not occur on or before the date falling 30 Business Days after the date of this Third Amendment and Restatement Agreement or such later date as the Company and the Agent may agree, then this Third Amendment and Restatement Agreement shall lapse and be of no further effect and none of the parties to this Third Amendment and Restatement Agreement shall be under any liability under this Third Amendment and Restatement Agreement (save in respect of Clause 5 (Expenses)) and the Facility Agreement shall be read and construed as if this Third Amendment and Restatement Agreement had never been entered into.

 

7.                                               CONSENT OF THE GUARANTORS

 

7.1                                        The Company on behalf of the Guarantors hereby consents, acknowledges and agrees to the amendments and other matters set forth in this Third Amendment and Restatement Agreement and hereby confirms and ratifies in all respects the guarantee in Clause 25 (Guarantee and Indemnity) in the Facility Agreement (including without limitation the continuation of each Guarantor’s payment and performance obligations thereunder upon and after the effectiveness of this Third Amendment and Restatement Agreement) and the enforceability of such guarantee against such Guarantor in accordance with its terms.

 

8.                                               MISCELLANEOUS

 

8.1                                        The provisions of Clause 39 (Notices), Clause 41 (Partial Invalidity), Clause 42 (Remedies and Waivers), Clause 43 (Amendments and Waivers) and Clause 47 (Enforcement) of the Facility Agreement shall apply to this Third Amendment and Restatement Agreement as if set out in this Third Amendment and Restatement Agreement, but as if references in those Clauses to the Facility Agreement were references to this Third Amendment and Restatement Agreement.

 

8.2                                        This Third Amendment and Restatement Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original, but all of which when taken together shall constitute a single instrument, and which counterparts may be delivered by telefacsimile or other electronic means (including .pdf).

 

8.3                                        The parties hereto intend this Third Amendment and Restatement Agreement shall take effect as a deed, notwithstanding that a party to it may only execute it under hand.

 

 

9.                                               THIRD PARTY RIGHTS

 

9.1                                        Unless expressly provided to the contrary in this Third Amendment and Restatement Agreement, a person who is not a party has no right under the Contracts (Rights of Third Parties) Act 1999 (or any analogous provision under any applicable law) to enforce or enjoy the benefit of any term of this Third Amendment and Restatement Agreement.

 

9.2                                        Notwithstanding any term of this Third Amendment and Restatement Agreement, the consent of any person who is not a party is not required to amend, rescind or otherwise vary this Third Amendment and Restatement Agreement at any time.

 

10.                                        GOVERNING LAW

 

This Third Amendment and Restatement Agreement and any non-contractual obligations arising out of or in connection with it is governed by English law.

 

IN WITNESS WHEREOF this Third Amendment and Restatement Agreement has been duly executed as a deed and has been delivered by each of the parties on the date first above written.

 

 

SCHEDULE 1

 

Conditions Precedent to the Effective Date

 

1.                                      Corporate authorisations

 

(a)                                 A copy of a resolution of the board of directors of the Company, the Original Borrower and the Acceding Borrower:

 

(i)                                     approving the terms of, and the transactions contemplated by, this Third Amendment and Restatement Agreement (including, without limitation, the Schedules attached to this Third Amendment and Restatement Agreement) and resolving that it execute, deliver and perform this Third Amendment and Restatement Agreement;

 

(ii)                                  authorising a specified person or persons to execute this Third Amendment and Restatement Agreement on its behalf; and

 

(iii)                               authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with this Third Amendment and Restatement Agreement.

 

(b)                                 A specimen of the signature of each person authorised by the resolution referred to in paragraph (a) above in relation to this Third Amendment and Restatement Agreement and related documents.

 

(c)                                  A certificate of an authorised signatory of the Company and the Acceding Borrower confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on the Acceding Borrower or on any Original Obligor to be exceeded.

 

(d)                                 A certificate of an authorised signatory of the Company, the Original Borrower and the Acceding Borrower certifying that its constitutional documents as previously delivered to the Agent and each copy document relating to it specified in this Schedule 1 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Third Amendment and Restatement Agreement.

 

2.                                      Transaction Documents

 

(a)                                 This Third Amendment and Restatement Agreement executed by the Company.

 

(b)                                 The Accession Deed duly executed by the Company and the Acceding Borrower.

 

(c)                                  A deed of confirmation in form and substance acceptable to the Agent (acting reasonably) from each provider of Transaction Security confirming the continuation of each Transaction Security Document.

 

(d)                                 A copy of the power of attorney appointing the attorney named and defined therein as attorney of the Company in order to permit that person to do all such acts and things and agree and execute on behalf of the Company all such deeds and documents to which the Company is a party as may be required in connection with the documents listed therein executed by the Company.

 

 

(e)                                  A copy of the Group Structure Chart as of the Effective Date, which indicates which Persons are Restricted Subsidiaries and which are Unrestricted Subsidiaries.

 

3.                                      Legal opinions

 

A legal opinion of McGuireWoods London LLP, legal advisers to the Agent and the Lender as to English law addressed to the Agent and the Lender.

 

4.                                      KYC Information

 

Such documentation and other information relating to the Acceding Borrower as is requested by the Agent in connection with applicable “know your customer” and anti-money-laundering rules and regulations, including the PATRIOT Act.

 

5.                                      Other documents and evidence

 

Evidence that the fees, costs and expenses (other than legal fees, which shall be paid in full within 5 Business Days after receipt of a written invoice by the Company) then due pursuant to Clause 5 (Expenses) have been paid or will be paid by the Effective Date.

 

 

SCHEDULE 2

 

Amended and Restated Facility Agreement

 

 

DATED 20 MAY 2013 AS AMENDED AND RESTATED PURSUANT TO AN AMENDMENT AND RESTATEMENT AGREEMENT DATED 11 AUGUST 2014, AN AMENDMENT AND RESTATEMENT AGREEMENT DATED 15 MAY 2015, AN AMENDMENT LETTER DATED 26 JUNE 2015, AN AMENDMENT LETTER DATED 11 SEPTEMBER 2015 AND AN AMENDMENT AND RESTATEMENT AGREEMENT DATED 14 JUNE 2018

 

 

BETWEEN

 

 

MU FINANCE PLC
 AS ORIGINAL BORROWER

 

 

MANCHESTER UNITED FOOTBALL CLUB LIMITED
 AS ACCEDING BORROWER

 

 

THE LENDERS PARTY HERETO

 

 

AND

 

 

BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED 
 AS AGENT

 

 

 

TERM FACILITY AGREEMENT

 

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1 INTERPRETATION
    	
1
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions and   Interpretation
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 2 THE FACILITY
    	
35
    
	
 
    	
 
    	
 
    
	
2.
    	
The Facility
    	
35
    
	
3.
    	
Purpose
    	
36
    
	
4.
    	
Conditions of   Utilisation
    	
36
    
	
 
    	
 
    	
 
    
	
SECTION 3 UTILISATION
    	
38
    
	
 
    	
 
    	
 
    
	
5.
    	
Utilisation
    	
38
    
	
6.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
7.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
8.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
9.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
10.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
11.
    	
[INTENTIONALLY LEFT   BLANK]
    	
39
    
	
 
    	
 
    	
 
    
	
SECTION 4 REPAYMENT,   PREPAYMENT AND CANCELLATION
    	
40
    
	
 
    	
 
    	
 
    
	
12.
    	
Repayment
    	
40
    
	
13.
    	
Illegality, Voluntary   Prepayment and Cancellation
    	
40
    
	
14.
    	
Mandatory Prepayment
    	
41
    
	
15.
    	
Restrictions
    	
44
    
	
 
    	
 
    	
 
    
	
SECTION 5 COSTS OF   UTILISATION
    	
46
    
	
 
    	
 
    	
 
    
	
16.
    	
Interest
    	
46
    
	
17.
    	
Interest Periods
    	
47
    
	
18.
    	
Changes to the   Calculation of Interest
    	
48
    
	
19.
    	
Fees
    	
51
    
	
 
    	
 
    	
 
    
	
SECTION 6 ADDITIONAL   PAYMENT OBLIGATIONS
    	
52
    
	
 
    	
 
    	
 
    
	
20.
    	
Tax Gross-Up and Indemnities
    	
52
    
	
21.
    	
Increased Costs
    	
62
    
	
22.
    	
Other Indemnities
    	
64
    
	
23.
    	
Mitigation by the   Lenders
    	
65
    
	
24.
    	
Costs and Expenses
    	
66
    
	
 
    	
 
    	
 
    
	
SECTION 7 GUARANTEE
    	
67
    
	
 
    	
 
    	
 
    
	
25.
    	
Guarantee and Indemnity
    	
67
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 8 REPRESENTATIONS,   UNDERTAKINGS AND EVENTS OF DEFAULT
    	
71
    
	
 
    	
 
    	
 
    
	
26.
    	
Representations
    	
71
    
	
27.
    	
Information   Undertakings
    	
79
    
	
28.
    	
Financial Covenant
    	
84
    
	
29.
    	
General Undertakings
    	
89
    
	
30.
    	
Events of Default
    	
95
    
	
 
    	
 
    	
 
    
	
SECTION 9 CHANGES TO   PARTIES
    	
100
    
	
 
    	
 
    	
 
    
	
31.
    	
Changes to the Lenders
    	
100
    
	
32.
    	
[INTENTIONALLY LEFT   BLANK]
    	
106
    
	
33.
    	
Changes to the Obligors
    	
106
    
	
 
    	
 
    	
 
    
	
SECTION 10 THE FINANCE   PARTIES
    	
110
    
	
 
    	
 
    	
 
    
	
34.
    	
Role of the Agent
    	
110
    
	
35.
    	
Conduct of Business by   the Finance Parties
    	
119
    
	
36.
    	
Sharing among the   Finance Parties
    	
119
    
	
 
    	
 
    	
 
    
	
SECTION 11 ADMINISTRATION
    	
121
    
	
 
    	
 
    	
 
    
	
37.
    	
Payment Mechanics
    	
121
    
	
38.
    	
Set-Off
    	
124
    
	
39.
    	
Notices
    	
125
    
	
40.
    	
Calculations and   Certificates
    	
128
    
	
41.
    	
Partial Invalidity
    	
128
    
	
42.
    	
Remedies and Waivers
    	
129
    
	
43.
    	
Amendments and Waivers
    	
129
    
	
44.
    	
Confidentiality
    	
132
    
	
45.
    	
Confidentiality of   Funding Rates and Reference Bank Quotations
    	
138
    
	
46.
    	
Counterparts
    	
139
    
	
 
    	
 
    	
 
    
	
SECTION 12 GOVERNING LAW   AND ENFORCEMENT
    	
140
    
	
 
    	
 
    	
 
    
	
47.
    	
Governing Law
    	
140
    
	
48.
    	
Enforcement
    	
140
    
	
 
    	
 
    	
 
    
	
SCHEDULE 1 THE ORIGINAL PARTIES
    	
141
    
	
 
    	
 
    
	
PART 1 THE ORIGINAL OBLIGORS
    	
141
    
	
 
    	
 
    
	
PART II THE LENDERS
    	
142
    
	
 
    	
 
    
	
SCHEDULE 2 CONDITIONS PRECEDENT
    	
143
    
	
 
    	
 
    
	
PART I CONDITIONS PRECEDENT TO INITIAL   UTILISATION
    	
143
    

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
PART II CONDITIONS   PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL OBLIGOR
    	
146
    
	
 
    	
 
    
	
SCHEDULE 3 REQUESTS
    	
148
    
	
 
    	
 
    
	
PART I UTILISATION REQUEST
    	
148
    
	
 
    	
 
    
	
PART II SELECTION NOTICE
    	
150
    
	
 
    	
 
    
	
SCHEDULE 4 WIRING INFORMATION
    	
151
    
	
 
    	
 
    
	
SCHEDULE 5 FORM OF TRANSFER CERTIFICATE
    	
152
    
	
 
    	
 
    
	
SCHEDULE 6 FORM OF ASSIGNMENT AGREEMENT
    	
156
    
	
 
    	
 
    
	
SCHEDULE 7 FORM OF ACCESSION DEED
    	
160
    
	
 
    	
 
    
	
SCHEDULE 8 AGREED SECURITY PRINCIPLES
    	
165
    
	
 
    	
 
    
	
SCHEDULE 9 FORM OF COMPLIANCE CERTIFICATE
    	
171
    
	
 
    	
 
    
	
SCHEDULE 10 FORM OF RESIGNATION LETTER
    	
175
    
	
 
    	
 
    
	
SCHEDULE 11 [INTENTIONALLY LEFT BLANK]
    	
178
    
	
 
    	
 
    
	
SCHEDULE 12 [INTENTIONALLY LEFT BLANK]
    	
179
    
	
 
    	
 
    
	
SCHEDULE 13 MATERIAL COMPANIES
    	
180
    
	
 
    	
 
    
	
SCHEDULE 14 [INTENTIONALLY LEFT BLANK]
    	
181
    
	
 
    	
 
    
	
SCHEDULE 15 [INTENTIONALLY LEFT BLANK]
    	
182
    
	
 
    	
 
    
	
SCHEDULE 16 TABLE OF VALUES FOR X
    	
183
    
	
 
    	
 
    
	
SCHEDULE 17 RESTRICTIVE COVENANTS
    	
184
    

 

iii

 

THIS AGREEMENT is dated 20 May 2013 as amended and restated pursuant to an amendment and restatement agreement dated 11 August 2014, an amendment and restatement agreement dated 15 May 2015, an amendment letter dated 26 June 2015, an amendment letter dated 11 September 2015 and an amendment and restatement agreement dated 14 June 2018 made between:

 

(1)           RED FOOTBALL LIMITED (registration number 5370076) (the “Company”);

 

(2)           MU FINANCE PLC (registration number 07088267) (the “Original Borrower”);

 

(3)           MANCHESTER UNITED FOOTBALL CLUB LIMITED (registration number 00095489) (the “Acceding Borrower”);

 

(4)           THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Original Parties), including without limitation MANCHESTER UNITED LIMITED (registration number 02570509) (“MUL”) and MANCHESTER UNITED FOOTBALL CLUB LIMITED (registration number 00095489) (“MUFC”), as original guarantors (together with the Company, the “Original Guarantors”);

 

(5)           BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED as lender (the “Original Lender”); and

 

(6)           BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED as agent of the other Finance Parties (the “Agent”).

 

IT IS AGREED as follows:

 

SECTION 1
 INTERPRETATION

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

In this Agreement:

 

“Acceleration Event” means, following the occurrence of an Event of Default which is then continuing the Agent:

 

(i)            giving a notice of acceleration pursuant to, and in accordance with, paragraph (b) or (d) (but only if such notice relates to the enforcement of Transaction Security) of Clause 30.13 (Acceleration); or

 

(ii)           having previously placed any part of a Facility on demand pursuant to, and in accordance with, paragraph (a) or (c) of Clause 30.13 (Acceleration), making a demand for payment as referred to therein,

 

which notice or demand has not been withdrawn, cancelled or otherwise ceased to have effect.

 

 

“Acceptable Bank” means:

 

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

 

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

 

“Accession Deed” means a document substantially in the form set out in Schedule 7 (Form of Accession Deed).

 

“Accounting Reference Date” means 30 June.

 

“Additional Borrower” means a company which becomes an Additional Borrower in accordance with Clause 33 (Changes to the Obligors).

 

“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance with Clause 33 (Changes to the Obligors).

 

“Additional Obligor” means an Additional Borrower or an Additional Guarantor.

 

“Additional Loan” means a Loan in the aggregate amount of $7,892,500 that the Lenders made available to the Original Borrower on the First Amendment Effective Date.

 

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

 

“Agent’s Spot Rate of Exchange” means the Agent’s spot rate of exchange for the purchase of the relevant currency with the Base Currency in the London foreign exchange market at or about 11:00 a.m. on a particular day.

 

“Agreed Security Principles” means the agreed security principles set out in Schedule 8 (Agreed Security Principles).

 

“Agreement” means this Agreement, as amended by the First Amendment and Restatement Agreement, the Second Amendment and Restatement Agreement, the Third Amendment and Restatement Agreement and as further amended and/or amended and restated from time to time

 

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

 

(a)           (other than where paragraph (b) below applies) as the rate at which the relevant Alternative Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

 

2

 

(b)           if different, as the rate (if any and applied to the relevant Alternative Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.

 

“Alternative Reference Banks” means the principal London offices of up to three banks as may be appointed by the Company with the consent of the Agent (such consent not to be unreasonably withheld and deemed given if not expressly refused within five Business Days of the Company giving the Agent notice that it wishes to appoint any such bank) from time to time provided that each such appointed bank has confirmed that it is able to act in such capacity or such other banks as may be appointed by the Agent in consultation with the Company.

 

“Amendment Effective Date Lender” means Bank of America Merrill Lynch International Limited.

 

“Annual Financial Statements” has the meaning ascribed to such term in Clause 27 (Information Undertakings).

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to each Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

“Assigned Account” means any Mandatory Prepayment Account (as defined in any Debt Document (as defined in the Intercreditor Agreement)) and any other account that may from time to time be identified in writing as an Assigned Account by the Security Trustee and the Company in accordance with the terms of the applicable Transaction Security Documents, including any renewal or redesignation of such accounts.

 

“Assignment Agreement” means an agreement substantially in the form set out in Schedule 6 (Form of Assignment Agreement) or any other form (including electronic documentation generated by MarkitClear or another electronic platform) agreed between the relevant assignor and assignee provided that if that other form does not contain the undertaking set out in the form set out in Schedule 6 (Form of Assignment Agreement) it shall not be a Creditor/Creditor Representative Accession Undertaking as defined in, and for the purposes of, the Intercreditor Agreement.

 

“Auditors” means an accounting firm of international standing appointed by the Company (which shall include, for the avoidance of doubt, the auditors of the Group as of the Third Amendment Effective Date).

 

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

 

“Availability Period” means: (a) the period from and including the date of this Agreement to and including the earlier of (i) the date falling 90 days thereafter and (ii) the first Utilisation Date to occur after the date of this Agreement; and (b) in relation to an Additional Loan, the date falling two Business Days after (but not including) the First Amendment Effective Date.

 

3

 

“Available Facility” means the aggregate for the time being of each Lender’s Commitment during the Availability Period or on the First Amendment Effective Date, as applicable.

 

“Base Case Model” means the financial model including profit and loss, balance sheet and cashflow projections in agreed form relating to the Restricted Group.

 

“Base Currency” means U.S. Dollars.

 

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

 

(a)           (other than where paragraph (b) below applies) as the rate at which the relevant Base Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

 

(b)           if different, as the rate (if any and applied to the relevant Base Reference Bank and the relevant currency and period) which contributors to the Screen Rate are asked to submit to the relevant administrator.

 

“Base Reference Banks” means the principal London offices of up to three banks as may be appointed by the Company with the consent of the Agent from time to time (such consent not to be unreasonably withheld and deemed given if not expressly refused within five Business Days of the Company giving the Agent notice that it wishes to appoint any such bank) provided that each such appointment bank has confirmed that it is able to act in such capacity or such other banks as may be appointed by the Agent in consultation with the Company.

 

“Borrowers” means the Original Borrower, the Acceding Borrower or an Additional Borrower unless it has ceased to be a Borrower in accordance with Clause 24 (Changes to the Obligors).

 

“Borrowings” has the meaning given to that term in Clause 28.1 (Financial definitions).

 

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

 

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

 

exceeds:

 

(b)           the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the

 

4

 

Business Day following receipt or recovery and ending on the last day of the current Interest Period.

 

“Budget” means any budget delivered by the Company to the Agent in respect of that period pursuant to Clause 27.4 (Budget).

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London, New York and (in relation to any date for payment or purchase of a currency) the principal financial centre of the country of that currency.

 

“Capital Expenditure” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Cash” means cash in hand and credit balances or amounts on deposit in an account in the name of a member of the Restricted Group with an Acceptable Bank which are freely transferable and freely convertible and accessible by a member of the Restricted Group within 30 days so long as repayment of that cash is not contingent on the prior discharge of any other indebtedness of any person or on the satisfaction of any other condition (other than the making of a withdrawal request by a member of the Restricted Group where that member of the Restricted Group is freely able to make such a request at its discretion and without any restriction) and that cash is not subject to any Security (other than Transaction Security) and, for the avoidance of doubt, excluding any amount standing to the credit of any Mandatory Prepayment Account.

 

“Cash Equivalent Investments” means at any time:

 

(a)           certificates of deposit maturing within one year after the relevant date of calculation and issued by an Acceptable Bank;

 

(b)           any investment in marketable debt obligations issued or guaranteed by the government of the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State or by an instrumentality or agency of any of them having an equivalent credit rating which:

 

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

 

(ii)           is not convertible or exchangeable to any other security,

 

provided that the relevant issuer or guarantor is rated at least A-1 by Standard & Poor’s Rating Services, F-1 by Fitch Ratings or P-1 by Moody’s Investor Services Limited;

 

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

 

(i)            for which a recognised trading market exists;

 

5

 

(ii)           issued by an issuer incorporated in the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State;

 

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

 

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

 

(d)           sterling bills of exchange issued eligible for rediscount at the Bank of England and accepted by an Acceptable Bank (or any dematerialised equivalent);

 

(e)           investments accessible within 30 days in money market funds which:

 

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

 

(ii)           invest substantially all their assets in securities of the types described in paragraphs (a) to (e) above; or

 

(f)            any other debt security approved by the Majority Lenders,

 

in each case, to which any member of the Restricted Group is beneficially entitled at that time and which is not issued or guaranteed by any member of the Restricted Group or subject to any Security (other than the Transaction Security Documents).

 

“Cashflow” has the meaning given to such term in Clause 28.1 (Financial definitions)

 

“Certain Funds Default” means a Default arising under or in connection with one of the following Clauses:

 

(a)           Clause 30.1(Non-payment);

 

(b)           Clause 30.3 (Other obligations) as it relates to:

 

(i)            Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock) of Schedule 17 (Restrictive Covenants); and

 

(ii)           Clause 4 (Liens) of Schedule 17 (Restrictive Covenants).

 

(c)           Clause 30.4 (Misrepresentation) as it relates to Clause 26.1 (Status), Clause 26.2 (Binding obligations), Clause 26.3 Non-conflict with other obligations), Clause 26.4 (Power and authority), and Clause 26.7 (Governing law and enforcement);

 

(d)           Clause 30.6 (Insolvency);

 

6

 

(e)           Clause 30.7 (Insolvency proceedings);

 

(f)            Clause 30.8 (Creditors’ process);

 

(g)           Clause 30.9 (Unlawfulness and invalidity); and

 

(h)           Clause 30.11 (Repudiation).

 

“CFC” means a “controlled foreign corporation” (as defined in Section 957(a) of the Code) for U.S. federal income tax purposes.

 

“CFC Obligor” means an Obligor that is a CFC.

 

“Champions League” means the UEFA Champions League and any successor or replacement competition.

 

“Champions League Adjustment Spreadsheet” means the spreadsheet delivered pursuant to Schedule 1 (Conditions to the Effective Date) of the Second Amendment and Restatement Agreement.

 

“Champions League Non Qualification Event” means the failure by the first team of Manchester United Football Club to qualify (in any season) for the first round group stages (or its equivalent from time to time) of the Champions League.

 

“Change of Control” means a “Change of Control” as defined in Schedule 17 (Restrictive Covenants).

 

“Charged Property” means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.

 

“Closing Date” means the date on which the Agent gives the Company and the Lenders the notification required under Clause 4.1 (Initial conditions precedent).

 

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

 

“Commitment” means:

 

(a)           in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Original Commitment” in Part II of Schedule 1 (The Lenders) and the amount of any other Commitment transferred to it under this Agreement;

 

(b)           in relation to the Amendment Effective Date Lender, the amount in the Base Currency set opposite its name under the heading “Additional Commitment” in Part II of Schedule 1 (The Lenders) and the amount of any other Commitment transferred to it under this Agreement; and

 

(c)           in relation to any other Lender, the amount in the Base Currency of any Commitment transferred to it under this Agreement,

 

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

 

7

 

“Compliance Certificate” means a certificate substantially in the form set out in Schedule 9 (Form of Compliance Certificate).

 

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

 

(a)           any member of the Group or any of their advisers; or

 

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

 

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

 

(i)            information that:

 

(A)          is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 44 (Confidentiality); or

 

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

 

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

 

(ii)           any Funding Rate or Reference Bank Quotation.

 

“Confidentiality Undertaking” means a confidentiality undertaking substantially in the recommended form of the LMA at the relevant time or in any other form agreed between the Company and the Agent.

 

“Consolidated EBITDA” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Consolidated Net Finance Charges” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“CTA” means the Corporation Tax Act 2009.

 

8

 

“Current Assets” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Current Liabilities” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Debt Document” has the meaning given to it in the Intercreditor Agreement.

 

“Default” means an Event of Default or any event or circumstance specified in Clause 30 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default provided that any such event which is subject to a qualification as to materiality or requires a determination to be made shall not constitute a Default unless such qualification is satisfied or such determination is made, as the case may be.

 

“Delegate” means any delegate, agent, attorney or co-trustee appointed by the Security Trustee.

 

“Disruption Event” means either or both of:

 

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

 

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

 

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

 

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

 

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

 

“Dormant Subsidiary” means a member of the Restricted Group which does not trade (for itself or as agent for any person) and does not own, legally or beneficially, assets which (excluding loans made to other members of the Restricted Group) in aggregate have a value of £2,500,000 or more or its equivalent in other currencies or, in the case of loans made to other members of the Restricted Group, which in aggregate have a value of £2,500,000 or more or its equivalent in other currencies.

 

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

 

9

 

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

 

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

 

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

 

“Environmental Claim” means any claim, proceeding or investigation by any person in respect of any Environmental Law.

 

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

 

(a)           the pollution or protection of the Environment;

 

(b)           the conditions of the workplace; or

 

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

 

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

 

“Event of Default” means any event or circumstance specified as such in Clause 30 (Events of Default).

 

“Exceptional Items” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Excluded Subsidiary” means:

 

(a)           MUTV;

 

(b)           Alderley Urban Investments Limited (a company incorporated in England and Wales with registered number 03132053);

 

(c)           each member of the New Holdco Group;

 

(d)           provided that such Restricted Subsidiary has been designated by the Company by written notice to the Agent as an Excluded Subsidiary, a Restricted Subsidiary formed solely for the purpose of holding one or more assets or properties that are to be financed, in whole or in part, with Indebtedness (as defined in Schedule 17 (Restrictive Covenants)) incurred pursuant to paragraph (e) or (p) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) of Schedule 17 (Restrictive Covenants) if the only assets and properties (other than assets that are de minimis in value) owned by such Restricted Subsidiary are financed, in whole or in part, with Indebtedness incurred pursuant to paragraphs (e) or (p) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) of Schedule 17

 

10

 

(Restrictive Covenants) for so long as any such Indebtedness remains outstanding and an obligation of such Restricted Subsidiary (it being understood that promptly upon the retirement or repayment of such Indebtedness or the assumption of such Indebtedness by a Person other than such Restricted Subsidiary, such Restricted Subsidiary shall cease to be an Excluded Subsidiary and shall, subject to the Agreed Security Principles, become an Additional Guarantor (to the extent it would otherwise be required to do so)); and

 

(e)           provided that such Restricted Subsidiary has been designated by the Company by written notice to the Agent as an Excluded Subsidiary, any Person that becomes a Restricted Subsidiary after the Second Amendment Effective Date as a result of the acquisition of such Person by a Restricted Subsidiary of the Company (other than Red Football Junior Limited) where such Person will have outstanding, following the consummation of such acquisition, Indebtedness as defined in Schedule 17 (Restrictive Covenants) permitted to be incurred pursuant to paragraph (m) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) of Schedule 17 (Restrictive Covenants) and such Person would be required to obtain the consent of the holders of such Indebtedness to become an Additional Guarantor or grant Transaction Security, for so long as any such Indebtedness remains outstanding and an obligation of such Person (it being understood that promptly upon the retirement or repayment of such Indebtedness or the assumption of such Indebtedness by a Person other than such Person, such Person shall cease to be an Excluded Subsidiary and shall, subject to the Agreed Security Principles, become an Additional Guarantor (to the extent it would otherwise be required to do so)).

 

“Existing Notes” means the $425,000,000 83/8% senior secured notes due 2017.

 

“Existing Security Documents” means:

 

(a)           the English law debenture dated 29 January 2010 between the Company, Red Football Junior Limited, MUL, MUFC and the Original Borrower and J.P. Morgan Europe Limited (the “Existing Debenture”);

 

(b)           the English law mortgage dated 29 January 2010 between MUL and J.P. Morgan Europe Limited;

 

(c)           the English law mortgage dated 29 January 2010 between MUFC and J.P. Morgan Europe Limited; and

 

(d)           the English law mortgage dated 23 April 2010 between MUL and J.P. Morgan Europe Limited.

 

“Existing RCF Facilities Agreement” means the revolving facilities agreement dated 29 January 2010 (as amended and/or restated from time to time) between, amongst others, the Company, J.P. Morgan Europe Limited as agent and security trustee, JPMorgan Chase Bank, N.A. as alternative L/C fronting bank, and the lenders listed therein.

 

11

 

“Facility” means the term loan facilities made available under this Agreement as described in Clause 2 (The Facility).

 

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

 

“Fallback Interest Period” means one Month.

 

“FATCA” means:

 

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

 

(b)           any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the U.S. and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (a) above; or

 

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

 

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

 

“Fee Letter” means any letter or letters dated on or about the date of this Agreement between the Original Agent and the Company and/or the Original Lender and the Company setting out any of the fees referred to in Clause 19 (Fees).

 

“Finance Document” means this Agreement, any Accession Deed, any Compliance Certificate, any Fee Letter, the Second Amendment Letter, the Intercreditor Agreement, any Resignation Letter, any Transaction Security Document, any Utilisation Request, the First Amendment and Restatement Agreement, the Second Amendment and Restatement Agreement, the Third Amendment and Restatement Agreement and any other document designated as a “Finance Document” by the Agent and the Company.

 

“Finance Lease” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Finance Party” means the Agent or a Lender.

 

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

 

(a)           monies borrowed or raised (other than Subordinated Shareholder Funding provided by the Original Investors);

 

(b)           any amount raised by acceptance under any acceptance credit facility or by a bill discounting or factoring credit facility;

 

12

 

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

 

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

 

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

 

(f)            any 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, together with the effect of any applicable netting arrangement);

 

(g)           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;

 

(h)           any amount raised by the issue of shares in the Company or any other member of the Restricted Group which is not held by another member of the Restricted Group which by their terms are redeemable (mandatorily or at the holder’s option);

 

(i)            any amount of any liability under an advance or deferred purchase agreement in respect of a fixed asset if such agreement was demonstrably entered into primarily as a method of raising finance;

 

(j)            any amount raised under any other transaction (including any forward sale or purchase agreement but not in relation to deferred payments for players) having the commercial effect of a borrowing; and

 

(k)           the amount of any liability in respect of any guarantee or indemnity or similar assurance against financial loss for any of the items referred to in the preceding paragraphs of this definition.

 

“Financial Quarter” has the meaning given to that term in Clause 28.1 (Financial definitions).

 

“Financial Year” has the meaning given to that term in Clause 28.1 (Financial definitions).

 

“First Amendment and Restatement Agreement” means the Amendment and Restatement Agreement relating to this Agreement dated 11 August 2014, and made between the Company, the Agent and the Original Lender.

 

“First Amendment Effective Date” means 11 August 2014.

 

“Fixed Charge Coverage Ratio” has the meaning given to such term in Schedule 17 (Restrictive Covenants).

 

13

 

“Football Creditors” has the meaning given to such term in rule E.35 (or any equivalent provision) of the Premier League Handbook.

 

“Funding Rate” means any individual rate notified by a Lender to the Agent pursuant to paragraph (a)(ii) of Clause 18.4 (Cost of Funds).

 

“Funds Flow Statement” means a funds flow statement in agreed form.

 

“GAAP” means generally accepted accounting principles applicable in the United Kingdom, as in effect on the date of any calculation or determination required hereunder.  Without limiting the foregoing, leases shall continue to be classified and accounted for on a basis consistent with that reflected in the audited financial statements for its Financial Year ended 30 June 2012 for all purposes of this Agreement, notwithstanding any change in GAAP relating thereto, unless the parties hereto shall enter into a mutually acceptable amendment addressing such changes, as provided for above.  At any time after the date of the Facility Agreement, the Company may elect to apply IFRS for all purposes of this Schedule, in lieu of GAAP, and, upon any such election, references herein to GAAP will be thereafter be construed to mean IFRS, as in effect as of the date of such election; provided that (i) any such election once made will be irrevocable, (ii) in addition to (and without prejudice to) any other reporting requirements in the Finance Documents, all financial statements and reports required to be provided, after such election, pursuant to the Finance Documents will be prepared on the basis of IFRS, as in effect from time to time (including that, upon first reporting its fiscal year results under IFRS, the Company will restate its financial statements on the basis of IFRS, for the fiscal year ending immediately prior to the first fiscal year for which financial statements have been prepared on the basis of IFRS) and (iii) after such election, all ratios, computations and other determinations based on GAAP contained in this Schedule will be computed in conformity with IFRS.  For the avoidance of doubt, the making of an election referred to in this definition will not be treated as resulting in an incurrence of Indebtedness.

 

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

 

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

 

“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 33 (Changes to the Obligors).

 

“Historic Screen Rate” means, in relation to any Loan, the most recent applicable Screen Rate for the currency of that Loan and for a period equal in length to the Interest Period of that Loan and which is as of a day which is no more than five Business Days before the Quotation Day.

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

(i)            its failure to pay is caused by:

 

(A)          administrative or technical error; or

 

(B)          a Disruption Event; and

 

payment is made within 3 Business Days of its due date; or

 

(ii)           the Agent is disputing in good faith whether it is contractually obliged to make the payment in question and the Agent has notified the Company and the Lenders that this is the case.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

(h)           seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets;

 

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

 

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

 

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

 

“Intellectual Property” means:

 

(a)           any patents, trade marks, service marks, designs, business names, copyrights, database rights, design rights, domain names, inventions, knowhow and other intellectual property rights and interests (which may on or after the date of this Agreement subsist), whether registered or unregistered; and

 

(b)           the benefit of all applications and rights to use such assets of each member of the Restricted Group (which may on or after the date of this Agreement subsist).

 

“Intercreditor Agreement” means the intercreditor agreement dated 29 January 2010, as amended and restated on or about the Second Amendment Effective Date (as may be further amended and/or restated from time to time) and made between, among others, the Company, the Debtors, the Security Trustee (as Security Trustee), the Agent (as a Creditor Representative), the Hedge Counterparties and the Intra-Group Lenders (as each term is defined therein).

 

“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 17 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 16.3 (Default interest).

 

16

 

“Interpolated Historic Screen Rate” means, in relation to any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

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

 

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

 

each for the currency of that Loan and each of which is as of a day which is no more than five Business Days before the Quotation Day.

 

“Interpolated Screen Rate” means, in relation to any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

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

 

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

 

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

 

“ITA” means the Income Tax Act 2007.

 

“Lease” means any present or future lease, underlease, sub-lease, licence, tenancy or right to occupy all or any part of the Real Property and any agreement for the grant of any of the foregoing.

 

“Legal Opinion” means any legal opinion delivered to the Agent under Clause 4.1 (Initial conditions precedent) or Clause 33 (Changes to the Obligors).

 

“Legal Reservations” means:

 

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

 

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

 

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

 

(d)           any other matters which are set out as qualifications or reservations as to matters of law of general application in the Legal Opinions.

 

17

 

“Lender” means:

 

(a)           any Original Lender;

 

(b)           the Amendment Effective Date Lender; and

 

(c)           any bank, financial institution, trust, fund or other entity which has become a Party as a Lender in accordance with Clause 31 (Changes to the Lenders);

 

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

 

“LIBOR” means, in relation to any Loan, the applicable Screen Rate as of the Specified Time on the Quotation Day for the currency of that Loan and a period comparable to the Interest Period of that Loan, provided that if that rate is less than zero, then LIBOR shall be deemed to be zero.

 

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

 

“LMA” means the Loan Market Association.

 

“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan, which shall include, without limitation, the Additional Loan.

 

“Major Event of Default” means:

 

(a)           an Event of Default set out in Clause 30.1 (Non-payment);

 

(b)           an Event of Default set out in Clause 30.2 (Breach of Certain Obligations);

 

(c)           an Event of Default set out in Clause 30.3 (Other Obligations), only with regards to a failure to deliver financial statements under Clause 27.1 (Financial Statements) or a failure to deliver a Compliance Certificate under paragraph (a) of Clause 27.2 (Provision and Contents of Compliance Certificate), in each case in compliance with Clause 27.2 (Provision and Contents of Compliance Certificate) (in the case of non-compliance with paragraph (b), excluding any non-compliance resulting from minor or typographical errors contained in a Compliance Certificate);

 

(d)           an Event of Default set out in Clause 30.6 (Insolvency);

 

(e)           an Event of Default set out in Clause 30.7 (Insolvency Proceedings) that has not been remedied or waived within 10 days of becoming an Event of Default;

 

(f)            an Event of Default set out in Clause 30.8 (Creditors’ Process) that has not been remedied or waived within 10 days of becoming an Event of Default;

 

(g)           an Event of Default set out in Clause 30.9 (Unlawfulness and Invalidity) that has not been remedied or waived within 30 days of becoming an Event of Default;

 

(h)           an Event of Default set out in Clause 30.10 (Intercreditor Agreement); and

 

18

 

(i)            an Event of Default set out in Clause 30.11 (Repudiation).

 

“Majority Lenders” means:

 

(a)           (for the purposes of paragraph (a) of Clause 43.2 (Required Consents) in the context of a waiver in relation to a proposed Utilisation of the condition in Clause 4.2 (Further Conditions Precedent)), a Lender or Lenders whose Commitments aggregate 662/3 per cent. or more of the Total Commitments; and

 

(b)           (in any other case), a Lender or Lenders whose Commitments aggregate 662/3 per cent. or more of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated 662/3 per cent. or more of the Total Commitments immediately prior to that reduction).

 

“Mandatory Prepayment Account” means an interest-bearing account:

 

(a)           held in England by the Borrowers with the Agent;

 

(b)           identified in a letter between the Company and the Agent as a Mandatory Prepayment Account;

 

(c)           subject to Security in favour of the Agent which Security is in form and substance satisfactory to the Agent; and

 

(d)           from which no withdrawals may be made by any members of the Group except as contemplated by this Agreement,

 

as the same may be redesignated, substituted or replaced from time to time.

 

“Margin” means, in relation to any Loan, the following percentages per annum, based upon the Total Net Leverage Ratio as set forth below in the column opposite that range:

 

	
Level
    	
 
    	
Total Net Leverage Ratio
    	
 
    	
% per annum
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
Greater than 3.50:1
    	
 
    	
1.75
    	
%
    
	
2
    	
 
    	
Greater than 2.00:1 but less than or equal to 3.50:1
    	
 
    	
1.50
    	
%
    
	
3
    	
 
    	
Less than or equal to 2.00:1
    	
 
    	
1.25
    	
%
    

 

However:

 

(i)            any increase or decrease in the Margin for a Loan shall take effect on the date (the “reset date”) which is the date of delivery to the Agent of the Compliance Certificate for that Relevant Period pursuant to Clause 27.2 (Provision and contents of Compliance Certificate);

 

(ii)           if, following receipt by the Agent of the annual audited financial statements of the Restricted Group and related Compliance

 

19

 

Certificate, those statements and Compliance Certificate do not confirm the basis for a reduced Margin, then the provisions of Clause 16.2 (Payment of interest) shall apply and the Margin for that Loan shall be the percentage per annum determined using the table above and the revised Total Net Leverage Ratio calculated using the figures in the Compliance Certificate;

 

(iii)          while an Event of Default is continuing, the Margin shall be determined at Level 1; and

 

(iv)          for the purpose of determining the Margin, the Total Net Leverage Ratio and Relevant Period shall be determined in accordance with Clause 28.1 (Financial definitions).

 

Notwithstanding anything to the contrary contained in this definition, the determination of the Margin for the period from the Second amendment Effective Date through and including the first Business Day immediately following the date a Compliance Certificate is delivered to the Agent for the Relevant Period ending 30 June 2015 shall be Level 2.

 

“Material Adverse Effect” means an event or circumstance:

 

(a)           which has or is reasonably likely to have a material adverse effect on the business, assets of the Restricted Group (taken as a whole) or financial condition of the Restricted Group (taken as a whole); or

 

(b)           which has or is reasonably likely to have a material adverse effect on the ability of the Restricted Group (taken as a whole) to perform its payment or financial covenant obligations under the Finance Documents; or

 

(c)           affecting the validity or enforceability of any of the Finance Documents in a manner which is reasonably likely to materially adversely affect the interests of the Finance Parties.

 

“Material Company” means, at any time:

 

(a)           the Company;

 

(b)           each Obligor; and

 

(c)           any member of the Restricted Group (other than an Excluded Subsidiary) which:

 

(i)            has earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA) representing 5 per cent. or more of Consolidated EBITDA (but excluding the earnings before interest, tax, depreciation and amortisation of Excluded Subsidiaries); or

 

(ii)           has gross assets (excluding intra-Restricted Group items) representing 5 per cent, or more of the gross assets of the Restricted Group (excluding the gross assets of the Excluded Subsidiaries),

 

20

 

in each case calculated on a consolidated basis.

 

Compliance with the conditions set out in sub-paragraphs (c)(i) and (ii) shall be determined by reference to the latest audited financial statements to be delivered pursuant to paragraph (a) of Clause 27.1 (Financial Statements).

 

However if a Subsidiary (that is not an Excluded Subsidiary or an Unrestricted Subsidiary) or business has been acquired since the date as at which the latest audited consolidated financial statements of the Company were prepared, the financial statements shall be adjusted in order to take into account the acquisition of that Subsidiary or business (that adjustment being certified by a director of the Company as representing an accurate reflection of the revised Consolidated EBITDA or gross assets of the Restricted Group (not including any Excluded Subsidiaries)).

 

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

 

“Material Disposal” means any disposal in respect of which the disposal proceeds exceed £5.0 million (or equivalent).

 

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

 

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

 

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

 

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

 

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

 

“MU Interactive” means Manchester United Interactive Limited (registration number 04365059), a company incorporated in England and Wales with limited liability.

 

“MUTV” means MUTV Limited (registration number 03418853), a company incorporated in England and Wales with limited liability.

 

“New Holdco” means a Restricted Subsidiary that is formed as a direct or indirect Subsidiary of MUL and that is the (direct or indirect) Holding Company of the New Holdco Subsidiaries.

 

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“New Holdco Business” means:

 

(a)           the retail, merchandising, apparel, intellectual property licensing and soccer school business (excluding, for the avoidance of doubt, any ticket sales (including season tickets), and match day concessions, parking or hospitality);

 

(b)           any sponsorship contracts and/or arrangements entered into after the date of this Agreement or any other similar business; and/or

 

(c)           the digital, media and mobile or any other similar business (excluding, for the avoidance of doubt, (i) any centrally negotiated broadcasting rights with the Premier League (in relation to domestic and international television and radio broadcasting rights) and UEFA (in relation to European club competition television and radio broadcasting rights) and (ii) any domestic cup television and radio broadcasting rights),

 

in each case, of or in relation to the Group and/or the first team of MUFC.

 

“New Holdco Group” means New Holdco and each New Holdco Subsidiary.

 

“New Holdco Subsidiary” means any Subsidiary that is formed as a direct or indirect Subsidiary of New Holdco primarily for the purpose of undertaking any New Holdco Business or acting as a direct or indirect Holding Company of another member of the New Holdco Group, including holding any assets or properties in relation thereto.

 

“Note Documents” means the Senior Note Documents (as such term is defined in the Intercreditor Agreement).

 

“Notes” means the Senior Notes (as such term is defined in the Intercreditor Agreement).

 

“Obligor” means a Borrower or a Guarantor.

 

“Obligors’ Agent” means the Company, appointed to act on behalf of each Obligor in relation to the Finance Documents pursuant to Clause 2.3 (Obligors’ Agent).

 

“Original Agent” means Bank of America, N.A.

 

“Original Financial Statements” means:

 

(a)           in relation to the Company, its consolidated audited financial statements for its Financial Year ended 30 June 2012;

 

(b)           in relation to MUL, its consolidated audited financial statements for its Financial Year ended 30 June 2012;

 

(c)           in relation to MUFC, its audited financial statements for its Financial Year ended 30 June 2012; and

 

(d)           in relation to any other Obligor, its audited financial statements (if any) delivered to the Agent as required by Clause 33 (Changes to the Obligors).

 

“Original Investors” means all or any of the following persons (with such proportionate interests all taken together, as they may determine):

 

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(a)           Red Football Limited Partnership;

 

(b)           Linda Glazer, the widow of Malcolm I. Glazer, and any children of Malcolm I. Glazer;

 

(c)           any of the children and remoter issue and the spouses, widowers and widows (whether or not such widowers and widows have remarried) of such children and remoter issue of any of the persons referred to in (b) above; and

 

(d)           any trust, corporation, partnership, limited liability company or other collective entity which is 50.1 per cent. or more controlled by any or all of the persons referred to above whether the control is exercised or the economic interest is held directly or indirectly through any number of additional trusts, corporations, partnerships, limited liability companies or other collective entities or any combination thereof.

 

“Original Obligor” means the Original Borrower or an Original Guarantor.

 

“Party” means a party to this Agreement.

 

“Pari Passu Debt” has the meaning given to it in the Intercreditor Agreement.

 

“Participating Member State” means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

 

“Permitted Change of Borrower” means an arrangement approved by all the Lenders (such approval not to be unreasonably withheld or delayed) and permitted as Pari Passu Debt whereby the Loan is transferred to a Holding Company of the Company (such entity, the “New Borrower”) whereby the New Borrower shall become a Borrower under the Facility, provided that following such permitted reorganisation the Indebtedness under the Facility shall continue to be secured by a Lien and have the benefit of Guarantees on the same basis as the Obligors’ other senior secured creditors.

 

“Permitted Refinancing Indebtedness” has the meaning given to such term in Schedule 17 (Restrictive Covenants).

 

“Permitted Reorganisation” means:

 

(a)           an amalgamation, merger, demerger, voluntary liquidation, consolidation, reorganization, winding up or corporate restructuring or reconstruction of a member of the Restricted Group or involving the business, operations, assets or shares of (or other interests in) any member of the Restricted Group or any other transfer or disposition of the business, operations, assets or shares of (or other interests in) any member of the Restricted Group (a “Reorganisation”), in each case, on a solvent basis, where:

 

(i)            all of the assets of that member remain within the Restricted Group and the value or percentage of any minority interest in any member of the Restricted Group held by any person which is not a member of the Restricted Group is not increased; and

 

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(ii)           if its assets or the shares in it were subject to security in favour of the Lenders immediately prior to such Reorganisation, the Company certifies that the Lenders (taken as a whole) will, subject to the Agreed Security Principles, enjoy the same or substantially equivalent guarantees from such member of the Restricted Group (or its successor, if any) and the same or substantially equivalent security over the same assets (except the shares in the entity that is not the successor entity, provided that the shares in the successor entity (if any) are subject to equivalent security) and over the shares in it (or in each case its successor, if any) after such Reorganisation (ignoring for the purpose of assessing such equivalency any limitations in Clause 25 (Guarantee and Indemnity) and/or required in accordance with the Agreed Security Principles and any new or restarted hardening periods);

 

(b)           any Reorganisation and/or any other step, action and/or event undertaken by any member of the Restricted Group to enable, facilitate and/or implement any of the following:

 

(i)            the establishment, formation and/or organisation of any member of the New Holdco Group;

 

(ii)           the transfer, assignment or novation by MUL and/or any other member of the Restricted Group of all or any portion of the New Holdco Business and/or any related arrangements or assets (including goodwill) to any member of the New Holdco Group, including the transfer of employees and/or relevant partner or supplier contracts; and/or

 

(iii)          the transfer, assignment or novation of MUTV and/or MU Interactive (including its assets) or all or any portion of the business of MUTV and/or MU Interactive and/or any related arrangements or assets (including goodwill) to any member of the New Holdco Group, including the transfer of employees and/or relevant partner or supplier contracts,

 

provided that, in each case under this paragraph (b):

 

(A)          (1) New Holdco shall, at all times, remain the direct or indirect Holding Company of the New Holdco Subsidiaries; and (2) subject to the Agreed Security Principles, within the later of 30 Business Days (or such longer period agreed between the Agent (acting reasonably) and the Company) of (x) the date of it becoming a member of the Restricted Group and (y) the Second Amendment Effective Date (unless an existing Transaction Security Document is effective to create Security over such shares), Security shall be granted over 65% of New Holdco’s shares (measured by the total combined voting power of the issued and outstanding voting shares);

 

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(B)          New Holdco and Sponsorship Newco shall, at all times, remain Restricted Subsidiaries;

 

(C)          any direct or indirect Holding Company of Sponsorship Newco that is also a Subsidiary of New Holdco, shall, at all times, remain a Restricted Subsidiary;

 

(D)          any Subsidiary that is formed as a Subsidiary of Sponsorship Newco primarily for the purpose of undertaking any sponsorship contracts and/or arrangements of the Group (which, for the purposes of this sub-paragraph, shall include any Unrestricted Subsidiaries) and/or the first team of MUFC, shall, at all times, remain a Restricted Subsidiary (a “Sponsorship Subsidiary”);

 

(E)           any member of the Restricted Group and any member of the New Holdco Group that enters into or, as the case may be, has transferred, assigned or novated to it any sponsorship contracts and/or arrangements, shall, at all times, remain a Restricted Subsidiary;

 

(F)           there shall be no transfer, assignment, novation, amendment, modification, restatement, extension or replacement (prior to the expiration of their respective terms) of the Specified Contracts or any other sponsorship contracts and/or arrangements entered into by any member of the Restricted Group prior to the date of this Agreement that results in any member of the New Holdco Group becoming a party to or entitled to compensation, rights or benefits under any such Specified Contract or other such sponsorship contract and/or arrangement; and

 

(G)          to the extent there is any transfer, assignment or novation of any sponsorship contracts and/or arrangements entered into by any member of the Restricted Group on or after the date of this Agreement to the New Holdco Group, such sponsorship contracts and/or arrangements shall be transferred, assigned or novated (as applicable) to a member of the Restricted Group, Sponsorship Newco and/or a Sponsorship Subsidiary only (for the avoidance of doubt, any member of the Restricted Group may enter into sponsorship contracts and/or arrangements from time to time); or

 

(c)           any action or reorganisation permitted by Clause 7 (Merger, Consolidation, Etc.) of Schedule 17 (Restrictive Covenants); or

 

(d)           any other reorganisation of one or more members of the Restricted Group approved by the Agent acting on the instructions of the Majority Lenders (acting reasonably),

 

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in each case not in breach of any applicable law and provided that the surviving entity is an entity that is incorporated in a Permitted Jurisdiction (as defined in Schedule 17 (Restrictive Covenants)).

 

“Permitted Senior Unsecured Issuer Activities” means activities, assets and liabilities:

 

(a)           incurred for or in connection with Taxes and administrative activities desirable to maintain Tax status in its jurisdiction of incorporation;

 

(b)           in connection with making claims (and the receipt of any related proceeds) for rebates or indemnification in respect of Taxes;

 

(c)           in connection with any litigation or court or other proceedings that are, in each case, being contested in good faith;

 

(d)           arising under the issue of fully paid shares at par to its shareholders in an amount not exceeding £1.0 million (or its equivalent) in aggregate at any time;

 

(e)           arising from the payment of fees, costs and expenses, stamp, registration, land and other Taxes incurred in connection with the Transaction Documents;

 

(f)            arising from entering into and performing any rights or obligations in respect of (i) agreements with rating agencies and (ii) engagement letters and reliance letters in respect of legal, accounting and other advice or reports received or commissioned by it, in each case, in relation to transactions which are not prohibited by this Agreement;

 

(g)           incurred as a result of operation of law; or

 

(h)           permitted by the Agent (acting on the instructions of the Majority Lenders (acting reasonably)).

 

“Premier League” means The Football Association Premier League (and any successors) or any replacement league.

 

“Premier League Handbook” means the Premier League Handbook (as updated and/or amended from time to time) published by The Football Association Premier League Limited or any successor or replacement organisation thereof.

 

“Qualifying Lender” has the meaning given to that term in Clause 20 (Tax gross-up and indemnities).

 

“Quarter Date” means the last day of a Financial Quarter.

 

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

 

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

 

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

 

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

 

“RCF Facilities” has the meaning given to it in the Intercreditor Agreement.

 

“RCF Facilities Agreement” has the meaning given to it in the Intercreditor Agreement.

 

“Real Property” means:

 

(a)           any freehold, leasehold or immovable property, (including the freehold and leasehold property in England and Wales specified in the Transaction Security Documents); and

 

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

 

“Receiver” means a receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

 

“Redemption Notes” means the Notes to be redeemed out of the proceeds of this Facility, as such Notes are more particularly described in the Officers’ Certificate (as defined in the Existing Note Indenture (as defined in Schedule 17 (Restrictive Covenants)) and the notice of redemption related thereto.

 

“Reference Bank Quotation” means any quotation supplied to the Agent by a Base Reference Bank or an Alternative Reference Bank.

 

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

 

“Relevant Equity” means new equity or Subordinated Shareholder Funding invested into the Restricted Group by any Principal or any Related Party or their respective Affiliates and applied within one Business Day of the date of such investment (provided that the Company shall use its reasonable endeavours to procure that it is applied on the same day) in prepayment, purchase, defeasance or redemption of the Notes, any Replacement Debt or other Term Debt).

 

“Relevant Interbank Market” means in relation to euro, the European interbank market and, in relation to any other currency, the London interbank market.

 

“Relevant Jurisdiction” means, in relation to an Obligor:

 

(a)           its jurisdiction of incorporation;

 

27

 

(b)           any jurisdiction where any asset subject to or intended to be subject to the Transaction Security to be created by it is situated;

 

(c)           any jurisdiction where it conducts a material part of its business; and

 

(d)           the jurisdiction whose laws govern the perfection of any of the Transaction Security Documents entered into by it.

 

“Relevant Period” has the meaning given to that term in Clause 28.1 (Financial definitions).

 

“Repeating Representations” means each of the representations set out in Clauses 26.1 (Status) to Clause 26.4 (Power and authority), Clause 26.7 (Governing law and enforcement), Clause 26.12 (No misleading information), paragraph (c) of Clause 26.13 (Financial statements), Clause 26.19 (Ranking), 26.23 (Shares), Clause 26.29 (Centre of main interests and establishments), and 26.32 (Anti-Corruption Laws and Sanctions).

 

“Replacement Debt” means Permitted Refinancing Indebtedness where the proceeds are applied within one Business Day of incurrence of such Permitted Refinancing Indebtedness (provided that the Company shall use its reasonable endeavors to procure that it is applied on the same day) in prepayment, purchase, defeasance or redemption of (a) the Notes, the Existing Notes or any Term Debt; or (b) any Permitted Refinancing Indebtedness.

 

“Representative” means, with respect to any person, such person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such person and of such person’s Affiliates.

 

“Resignation Letter” means a letter substantially in the form set out in Schedule 10 (Form of Resignation Letter).

 

“Restricted Group” means the Company and the Restricted Subsidiaries.

 

“Restricted Subsidiary” means a Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“Sanctioned Country” means, at any time, a country or territory which is itself the subject or target of any Sanctions.

 

“Sanctioned Person” means, at any time:

 

(a)           any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member state or any other relevant sanction authority of any jurisdiction in which a member of the Group conducts its business;

 

(b)           any Person located, operating, organized or resident in a Sanctioned Country; or

 

28

 

(c)           any Person owned or controlled by any such Person or Persons.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom or any other relevant sanctions authority of any jurisdiction in which a member of the Group conducts its business.

 

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

 

“Second Amendment and Restatement Agreement” means the Second Amendment and Restatement Agreement relating to this Agreement dated on or about 13 May 2015 and made between the Company, the Original Agent, the Agent and the Effective Date Lender.

 

“Second Amendment Effective Date” means on or about 26 June 2015, the date on which the Second Amendment and Restatement Agreement became effective.

 

“Second Amendment Letter” means letter the dated 6 May 2015 between the Company and Bank of America, N.A. relating to, among other things, the payment of certain fees detailed therein.

 

“Secured Parties” has the meaning given to it in the Intercreditor Agreement.

 

“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 Trustee” has the meaning given to it in the Intercreditor Agreement.

 

“Selection Notice” means a notice substantially in the form set out in Part II of Schedule 3 (Requests) given in accordance with Clause 17 (Interest Periods).

 

“Senior Management” means the group managing director, the chief operating officer, the chief financial officer or the executive vice chairman of the Restricted Group (or any person holding an equivalent management position) from time to time.

 

“Senior Unsecured Note Issuer” means a special purpose entity incorporated for the purpose of issuing or borrowing Senior Unsecured Notes (as defined in the Intercreditor Agreement) which is wholly owned, directly or indirectly, by the Company and which has, on or prior to issue date (howsoever described) of the relevant Senior Unsecured Notes, become party to the Intercreditor Agreement as a Senior Unsecured Note Issuer.

 

29

 

“Specified Contract” means:

 

(a)           up to (and including) its expiry or termination, the sponsorship agreement dated 3 November 2000, with effect on 1 August 2002, and entered into between Manchester United Merchandising Limited (a wholly owned subsidiary of Nike), MUL (named Manchester United PLC at time of signing of the contract) and MUFC (named Manchester United Football Club PLC at time of signing of the contract) (the “Nike Agreement”);

 

(b)           from (and including) its effective date, the sponsorship agreement dated 18 June 2014 between adidas (UK) Limited and MUFC (as may be amended and/or restated, novated, modified or supplemented from time to time) (the “adidas Agreement”) or any replacement or successor contract thereof; and

 

(c)           (i) the global sponsorship agreement dated 27 July 2011 between MUFC and General Motors Holdings LLC and (ii) the shirt sponsorship agreement dated 26 July 2012 between MUFC and General Motors Holdings LLC or, in each case, any replacement or successor contract thereof.

 

“Specified Time” means approximately 11:00 a.m., London time, on the Quotation Day prior to the commencement of any utilisation or Interest Period (as applicable) of a Loan.

 

“Sponsorship Newco” means a Restricted Subsidiary that is formed as a Subsidiary of New Holdco primarily for the purpose of undertaking any sponsorship contracts and/or arrangements entered into after the date of this Agreement or any other similar business of the Group (which, for the purpose of this definition, shall include any Unrestricted Subsidiaries) and/or the first team of MUFC.

 

“Stadium” means the football stadium at Old Trafford Stadium, Sir Matt Busby Way, Manchester M16 0RA, England owned by MUL.

 

“Subordinated Shareholder Funding” has the meaning ascribed to such term in Schedule 17 (Restrictive Covenants).

 

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

 

“Super Majority Lenders” means a Lender or Lenders whose Commitments aggregate 90 per cent. or more of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated 90 per cent. or more of the Total Commitments immediately prior to that reduction).

 

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

 

“Term Debt” means, on any date, Financial Indebtedness with a scheduled maturity date 12 Months or more from the date on which such Financial Indebtedness was incurred (and for the avoidance of doubt excludes the Facility and the RCF Facilities).

 

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“Terminating Hedge Agreements” means the interest rate transactions entered into between the Company and each of JPMorgan Chase Bank, N.A., Deutsche Bank AG, London Branch and National Westminster Bank plc dated 29 January 2010 (as may be amended and/or restated, supplemented or modified from time to time).

 

“Termination Date” means, in relation to the Facility, the date falling on the tenth anniversary of the Second Amendment Effective Date.

 

“Third Amendment and Restatement Agreement” means the Third Amendment and Restatement Agreement relating to this Agreement dated on or about [·] June 2018 and made between, inter alia, the Company, the Agent and the Effective Date Lender.

 

“Third Amendment Effective Date” means the “Effective Date” as defined in the Third Amendment and Restatement Agreement.

 

“Total Commitments” means the aggregate of the Commitments, being as at the Third Amendment Effective Date, $225,000,000.

 

“Total Net Leverage Ratio” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

“Transaction Documents” means the Finance Documents, the Senior Note Documents, each Hedging Agreement (as defined in the Intercreditor Agreement) and each other Debt Document.

 

“Transaction Security” means the security created or expressed to be created in favour of the Security Trustee pursuant to the Transaction Security Documents.

 

“Transaction Security Documents” has the meaning given to it in the Intercreditor Agreement.

 

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

 

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

 

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

 

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

 

“UEFA” means the Union of European Football Associations and any successor or replacement organisation thereof.

 

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

 

“Unrestricted Subsidiaries” has the meaning given to such term in Schedule 17 (Restrictive Covenants).

 

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“U.S. Obligor” means an Obligor that is a U.S. Person.

 

“Utilisation” means a utilisation of the Facility.

 

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

 

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

 

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

 

“Working Capital” has the meaning given to such term in Clause 28.1 (Financial definitions).

 

1.2                               Construction

 

(a)                                 Unless a contrary indication appears a reference in any Finance Document to:

 

(i)                                   “Bank of America Merrill Lynch International Limited” is a reference to its successor in title Bank of America Merrill Lynch International Designated Activity Company (including, without limitation, its branches) pursuant to and with effect from the merger between Bank of America Merrill Lynch International Limited and Bank of America Merrill Lynch International Designated Activity Company that takes effect in accordance with Chapter II, Title II of Directive (EU) 2017/1132 (which repeals and codifies the Cross-Border Mergers Directive (2005/56/EC)), as implemented in the United Kingdom and Ireland. Notwithstanding anything to the contrary in any Finance Document and the Restated Facility Agreement, a transfer of rights and obligations from Bank of America Merrill Lynch International Limited to Bank of America Merrill Lynch International Designated Activity Company pursuant to such merger shall be permitted without requiring the consent of the Company;

 

(ii)                                the “Agent”, any “Finance Party”, any “Lender”, any “Obligor”, any “Party”, any “Secured Party”, the “Security Trustee” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees and, in the case of the Security Trustee, any person for the time being appointed as Security Trustee or Security Trustees in accordance with the Finance Documents;

 

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

 

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

 

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

 

(vi)                            “guarantee” means (other than in Clause 25 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)                                  A Major Event of Default is “continuing” if it has not been waived.

 

(f)                                   This Clause 1.2 (Construction) shall not apply to the provisions of Schedule 17 (Restrictive Covenants).

 

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1.3                               Currency Symbols and Definitions

 

“£” and “sterling” denotes lawful currency of the United Kingdom and “$” and “dollars” denote lawful currency of the United States of America.

 

1.4                               Terms defined in the Restrictive Covenants Schedule

 

Unless a contrary intention appears, capitalised terms used in this Agreement which are not defined in Clause 1.1 (Definitions) have the meaning given to them in Schedule 17 (Restrictive Covenants).

 

1.5                               Third party rights

 

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

 

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

 

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SECTION 2
 THE FACILITY

 

2.                                      THE FACILITY

 

2.1                               The Facility

 

Subject to the terms of this Agreement and the Third Amendment and Restatement Agreement, the Lenders shall make available to the Borrowers a term loan facility in an aggregate amount equal to the Total Commitments.

 

2.2                               Finance Parties’ rights and obligations

 

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

 

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

 

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

 

2.3                               Obligors’ Agent

 

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

 

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

 

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

 

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

 

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

 

3.                                      PURPOSE

 

3.1                               Purpose

 

Each Borrower shall apply all amounts borrowed by it in or towards the general corporate purposes of the Group.

 

3.2                               Monitoring

 

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

 

4.                                      CONDITIONS OF UTILISATION

 

4.1                               Initial conditions precedent

 

A Borrower may not deliver a Utilisation Request unless the Agent has received all of the documents and other evidence:

 

(a)                                 with respect to the initial Utilisation only, listed in Part I of Schedule 2 (Conditions Precedent) hereof; or

 

(b)                                 with respect to the Utilisation on the First Amendment Effective Date only, listed in Schedule 1 (Conditions Precedent to the Effective Date) of the First Amendment and Restatement Agreement,

 

in each case in form and substance satisfactory to the Agent (acting reasonably).  The Agent shall notify the Company and the Lenders promptly upon being so satisfied.

 

4.2                               Further conditions precedent

 

Subject to Clause 4.1 (Initial Conditions Precedent) and Clause 4.3 (Certain Funds), the Lenders will only be obliged to comply with Clause 5.4 (Lenders’ Participation) in relation to a Utilisation if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

(a)                                 no Default is continuing or would result from the proposed Utilisation; and

 

(b)                                 the Repeating Representations to be made by each Obligor are true and accurate by reference to the facts then subsisting and will remain true and accurate immediately after the making of the Utilisation.

 

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4.3                               During the Availability Period, unless a Certain Funds Default is continuing or would result from the proposed Loan, neither the Agent nor any of the Lenders shall:

 

(a)                                 invoke any condition set out in Clause 4.2 (Further Conditions Precedent) as a ground for refusing to make the Loan available;

 

(b)                                 exercise any right, power or discretion to terminate or cancel the obligation to make the Loan, other than under Clause 13.1 (Illegality); or

 

(c)                                  take any step under Clause 30.13 (Acceleration).

 

However, as soon as the Availability Period ends, all those rights, remedies and entitlements shall be available even though they have not been exercised or available during the Availability Period.

 

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SECTION 3
 UTILISATION

 

5.                                      UTILISATION

 

5.1                               Delivery of a Utilisation Request

 

A Borrower (or the Company on its behalf) may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time.

 

5.2                               Completion of a Utilisation Request

 

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

 

(i)                                     it identifies the Borrower of the Loan;

 

(ii)                                  in the case of:

 

(A)                               the initial Utilisation, the proposed Utilisation Date is a Business Day within the Availability Period; or

 

(B)                               the Utilisation on the First Amendment Effective Date, the First Amendment Effective Date itself is a Business Day, as applicable;

 

(iii)                               it identifies the currency of the Utilisation, and the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

 

(iv)                              the proposed Interest Period complies with Clause 17 (Interest Periods).

 

(b)                                 Only one Utilisation may be requested by a Borrower during the Availability Period referred to in paragraph (a) of the definition thereof, and only one Utilisation may be requested by a Borrower on the First Amendment Effective Date.

 

5.3                               Currency and amount

 

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

 

(b)                                 The aggregate amount for the Borrowers of the proposed Utilisation shall be equal to the Available Facility.

 

5.4                               Lenders’ participation

 

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

 

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

 

6.                                      [INTENTIONALLY LEFT BLANK]

 

7.                                      [INTENTIONALLY LEFT BLANK]

 

8.                                      [INTENTIONALLY LEFT BLANK]

 

9.                                      [INTENTIONALLY LEFT BLANK]

 

10.                               [INTENTIONALLY LEFT BLANK]

 

11.                               [INTENTIONALLY LEFT BLANK]

 

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SECTION 4
 REPAYMENT, PREPAYMENT AND CANCELLATION

 

12.                               REPAYMENT

 

12.1                        Repayment of Loans

 

Each Borrower shall repay all outstanding Loans on the Termination Date.

 

13.                               ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION

 

13.1                        Illegality

 

If, at any time, it is or will become unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in any Utilisation:

 

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

 

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

 

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

 

13.2                        Voluntary cancellation

 

The Company may, if it gives the Agent not less than 3 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (but if in part, being a minimum amount of $1.0 million) of the Available Facility.  Any cancellation under this Clause 13 shall reduce the Commitments of the Lenders rateably.

 

13.3                        Voluntary prepayment of Utilisations

 

A Borrower may, if it or the Company gives the Agent not less than 3 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of the Utilisation (but if in part, being an amount that reduces the Utilisation by a minimum amount of $1.0 million) or, where the prepayment is made at the same time as an equivalent amount of the Facility is permanently reduced, in the order set out in Clause 14.3 (Application of mandatory prepayments) (assuming for this purpose that the prepayment was required by Clause 14.2 (Insurance Proceeds) and that no Lender has declined the prepayment), as applicable.

 

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

 

(a)                                 If:

 

(i)                                   any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 20.2 (Tax gross-up);

 

(ii)                                any Lender claims indemnification from the Company or an Obligor under Clause 20.3 (Tax indemnity) or Clause 21.1 (Increased costs); or

 

(iii)                             any Lender invokes Clause 18.3 (Market Disruption),

 

the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Utilisations, provided that this Clause 13.4(a) shall not apply while there is only one Lender under the Facility.

 

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

 

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

 

14.                               MANDATORY PREPAYMENT

 

14.1                        Exit

 

Upon the occurrence of a Change of Control, the Facility will be cancelled and all outstanding Utilisations, together with accrued interest, and all other amounts accrued under the Finance Documents, shall become immediately due and payable.

 

14.2                        Insurance Proceeds

 

(a)                                 For the purposes of this Clause 14.2 (Insurance Proceeds), Clause 14.3 (Application of mandatory prepayments) and Clause 14.4 (Mandatory Prepayment Accounts):

 

“Excluded Insurance Proceeds” means any proceeds of an insurance claim which relate to any insurance drawn for business interruption or third party liability or any insurance relating to player or which:

 

(i)                                     the Company notifies the Agent are, or are to be, applied:

 

(A)                               to meet a third party claim in respect of business interruption, loss of earnings or a similar claim;

 

(B)                               in the replacement, reinstatement and/or repair of the assets or to the purchase of replacement assets useful to the business; or

 

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(C)                               which are, or are to be, applied or reinvested in substantially similar assets used in the Restricted Group’s business,

 

in each case within 365 days, or such longer period as the Majority Lenders may agree (or, in the case of an insurance claim relating to damage to the Stadium, for such longer period as members of the Restricted Group are using all reasonable endeavours to replace, repair or reinstate the Stadium as soon as reasonably practicable and are using or intend to use the relevant proceeds to fund such replacement, repair or reinstatement (and, at the reasonable request of the Agent at any time or times at which the Company is relying on this provision, the Company will promptly certify that the requirements of the provision have been and are being met)) after receipt; or

 

(ii)                                  when aggregated with the proceeds of other such insurance claims received in any Financial Year of the Company, are less than £1.0 million.

 

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

 

(b)                                 The Company shall ensure that each Borrower offers to prepay Utilisations in an amount equal to Insurance Proceeds at the times and in the order of application contemplated by Clause 14.3 (Application of mandatory prepayments) after giving effect to any commitment, cancellation or prepayments in accordance with Clause 14.2(b) (Excess Proceeds and Insurance Proceeds) of the Existing RCF Facilities Agreement.

 

(c)                                  Any Lender may, within 3 Business Days of receipt of an offer of prepayment under paragraph (b) of Clause 14.2 (Insurance Proceeds), decline all or part of its share in that prepayment (and, to the extent that a Lender declines part of a prepayment, the amount of the prepayment to be made in respect of that Lender’s Commitments will be reduced accordingly and, for the avoidance of doubt, any part of a Lender’s share in that prepayment that is not declined within 3 Business Days of receipt of the offer of that prepayment will be deemed to have been accepted by that Lender.

 

14.3                        Application of mandatory prepayments

 

(a)                                 A prepayment made under Clause 14.2 (Insurance Proceeds) shall be applied in prepayment of Loans pro rata.

 

(b)                                 Unless the Company makes an election under paragraph (c) below, each Borrower shall offer to prepay Utilisations, in the case of any prepayment relating to the amounts of Insurance Proceeds, promptly upon receipt of those Insurance Proceeds; and if such offer is accepted, the prepayment will be made on the day falling 5 Business Days after the date of such offer.

 

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(c)                                  Subject to paragraph (d) below, the Company may, by giving the Agent not less than 2 Business Days’ (or such shorter period as the Majority Lenders may agree) prior written notice, elect that any prepayment due under Clause 14.2 (Insurance Proceeds) be made on the last day of the Interest Period relating to the Loan.  If the Company makes that election then an amount of the Loan equal to the amount of the relevant prepayment will be cancelled and, if applicable, be due and payable on the last day of its Interest Period.

 

(d)                                 If the Company has made an election under paragraph (c) above but a Default has occurred and is continuing, that election shall no longer apply and the amount of the relevant prepayment shall be immediately due and payable (unless the Majority Lenders otherwise agree in writing).

 

14.4                        Mandatory Prepayment Accounts

 

(a)                                 The Company shall ensure that Insurance Proceeds in respect of which the Company has made an election under paragraph (c) of Clause 14.3 (Application of mandatory prepayments) are paid into a Mandatory Prepayment Account as soon as reasonably practicable after receipt by a member of the Restricted Group.

 

(b)                                 The Company and the Borrowers irrevocably authorise the Agent to apply amounts credited to the Mandatory Prepayment Account to pay amounts due and payable under Clause 14.3 (Application of mandatory prepayments) and otherwise under the Finance Documents.

 

(c)                                  A Lender or Agent with which a Mandatory Prepayment Account is held acknowledges and agrees that (i) interest shall accrue at normal commercial rates on amounts credited to those accounts and that the account holder shall be entitled to receive such interest (which shall be paid in accordance with the mandate relating to such account) unless a Default is continuing and (ii) each such account is subject to the Transaction Security.

 

14.5                        Excluded proceeds

 

Where Excluded Insurance Proceeds include amounts which are intended to be used for a specific purpose within a specified period (as set out in the definition of Excluded Insurance Proceeds), the Company shall ensure that those amounts are used for that purpose and, if requested to do so by the Agent (acting reasonably), shall promptly deliver a certificate to the Agent at the time of such application and at the end of such period confirming the amount (if any) which has been so applied within the requisite time periods provided for in the relevant definition.

 

14.6                        Limitation on prepayments

 

All prepayments referred to in Clause 14.2 (Insurance Proceeds) are subject to permissibility under local law (including financial assistance, corporate benefit restrictions on upstreaming of cash intra-Restricted Group and the fiduciary and statutory duties of the directors of the relevant members of the Restricted Group).  There will be no requirement to make any such prepayment where the tax cost to the Restricted Group of making that payment or making funds available to another

 

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member of the Restricted Group to enable such prepayment to be made is disproportionate to the amount to be prepaid (where the cost exceeds 5% of the amount).  The Restricted Group will use its reasonable endeavours to overcome any restrictions and/or minimise any costs of prepayment pending which an amount equal to that which would otherwise have been prepaid shall be paid into a blocked account, secured in favour of the Security Trustee.  If at any time those restrictions are removed, any relevant proceeds will be applied in prepayment and cancellation of the Facility at the end of the next Interest Period.

 

15.                               RESTRICTIONS

 

15.1                        Notices of Cancellation or Prepayment

 

Any notice of cancellation, prepayment, authorisation or other election given by any Party under Clause 13 (Illegality, Voluntary Prepayment and Cancellation), paragraph (c) of Clause 14.3 (Application of mandatory prepayments) or Clause 14.4 (Mandatory Prepayment Accounts) shall (subject to the terms of those Clauses) be irrevocable (unless otherwise agreed by the Majority Lenders) and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

15.2                        Interest and other amounts

 

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

 

15.3                        No reborrowing of Facility

 

After the First Amendment Effective Date, a Borrower may not reborrow any part of the Facility which is prepaid.

 

15.4                        Prepayment in accordance with Agreement

 

A Borrower may not repay or prepay all or any part of the Utilisations or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

 

15.5                        No reinstatement of Commitments

 

After the First Amendment Effective Date, no amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

 

15.6                        Agent’s receipt of Notices

 

If the Agent receives a notice under Clause 13 (Illegality, Voluntary Prepayment and Cancellation) or an election under paragraph (c) of Clause 14.3 (Application of mandatory prepayments), it shall promptly forward a copy of that notice or election to either the Company or the affected Lender, as appropriate.

 

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15.7                        Prepayment elections

 

The Agent shall notify the Lenders as soon as possible of any proposed prepayment or cancellation under Clause 14.2 (Insurance Proceeds).

 

15.8                        Effect of Repayment and Prepayment on Commitments

 

If all or part of a Utilisation is repaid or prepaid, an amount of the Commitments (equal to the amount of the Utilisation which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment.  Any cancellation under this Clause 15.8 shall reduce the Commitments of the Lenders rateably.

 

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SECTION 5
 COSTS OF UTILISATION

 

16.                               INTEREST

 

16.1                        Calculation of interest

 

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

 

(a)                                 Margin; and

 

(b)                                 LIBOR.

 

16.2                        Payment of interest

 

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

 

(b)                                 If the annual audited financial statements of the Restricted Group and related Compliance Certificate received by the Agent show that a higher Margin should have applied during a certain period, then the Company shall (or shall ensure the relevant Borrower shall) promptly upon request by the Agent pay to the Agent any amounts necessary to put the Agent and the Lenders in the position they would have been in had the appropriate rate of the Margin applied during such period.

 

16.3                        Default interest

 

(a)                                 If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is one per cent. higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 16.3 shall be immediately payable by the Obligor on demand by the Agent.

 

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

 

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

 

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

 

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

 

16.4                        Notification of rates of interest

 

(a)                                 The Agent shall promptly notify the Lenders and the Borrowers (or the Company) of the determination of a rate of interest under this Agreement.

 

(b)                                 The Agent shall promptly notify the Borrowers of each Funding Rate relating to a Loan.

 

17.                               INTEREST PERIODS

 

17.1                        Selection of Interest Periods and Terms

 

(a)                                 A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan (or any segment thereof) in the Utilisation Request for that Loan or (if the Loan has already been borrowed) in a Selection Notice.

 

(b)                                 Each Selection Notice for a Loan (or any segment thereof) is irrevocable and must be delivered to the Agent by the relevant Borrower (or the Company on behalf of the relevant Borrower) not later than the Specified Time.

 

(c)                                  If a Borrower (or the Company) fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will be one Month.

 

(d)                                 Subject to this Clause 17, a Borrower (or the Company) may select an Interest Period of one, two, three or six Months or any other period agreed between the relevant Borrower (or the Company) and the Agent (acting on the instructions of all the Lenders in relation to the relevant Loan).

 

(e)                                  An Interest Period for a Loan (or any segment thereof) shall not extend beyond the Termination Date.

 

(f)                                   Each Interest Period for a Loan (or any segment thereof) shall start on the Utilisation Date or (if already made) on the last day of the preceding Interest Period.

 

(g)                                There shall be no more than twenty separate Interest Periods at any one time with respect to the Loan.

 

17.2                        Non-Business Days

 

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

 

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18.                               CHANGES TO THE CALCULATION OF INTEREST

 

18.1                        Unavailability of Screen Rate

 

(a)                                 Interpolated Screen Rate:  If no Screen Rate is available for LIBOR for the Interest Period of a Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan.

 

(b)                                 Shortened Interest Period:  If no Screen Rate is available for LIBOR for:

 

(i)                                     the currency of that Loan; or

 

(ii)                                  the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate,

 

the Interest Period of that Loan shall (if it is longer than the applicable Fallback Interest Period) be shortened to the applicable Fallback Interest Period and the applicable LIBOR for that shortened Interest Period shall be determined pursuant to the relevant definition.

 

(c)                                  Shortened Interest Period and Historic Screen Rate: If the Interest Period of a Loan is, after giving effect to paragraph (b) above, either the applicable Fallback Interest Period or shorter than the applicable Fallback Interest Period and, in either case, no Screen Rate is available for LIBOR for:

 

(i)                                     the currency of that Loan; or

 

(ii)                                  the Interest Period of that Loan and it is not possible to calculate the Interpolated Screen Rate,

 

the applicable LIBOR shall be the Historic Screen Rate for that Loan.

 

(d)                                 Shortened Interest Period and Interpolated Historic Screen Rate: If paragraph (c) above applies but no Historic Screen Rate is available for the Interest Period of the Loan, the applicable LIBOR shall be the Interpolated Historic Screen Rate for a period equal in length to the Interest Period of that Loan.

 

(e)                                  Base Reference Bank Rate: If paragraph (d) above applies but it is not possible to calculate the Interpolated Historic Screen Rate, the Interest Period of that Loan shall, if it has been shortened pursuant to paragraph (b) above, revert to its previous length and the applicable LIBOR shall be the Base Reference Bank Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan.

 

(f)                                   Alternative Reference Bank Rate: If paragraph (e) above applies but no Base Reference Bank Rate is available for the relevant currency or Interest Period the applicable LIBOR shall be the Alternative Reference Bank Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan.

 

(g)                                  Cost of funds: If paragraph (f) above applies but no Alternative Reference Bank Rate is available for the relevant currency or Interest Period there shall

 

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be no LIBOR for that Loan and Clause 18.4 (Cost of Funds) shall apply to that Loan for that Interest Period.

 

18.2                        Calculation of Base Reference Bank Rate and Alternative Reference Bank Rate

 

(a)                                 Subject to paragraph (b) below, if LIBOR is to be determined on the basis of a Base Reference Bank Rate but a Base Reference Bank does not supply a quotation by the Specified Time, the Base Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Base Reference Banks.

 

(b)                                 If at or about noon on the Quotation Day none or only one of the Base Reference Bank supplies a quotation, there shall be no Base Reference Bank Rate for the relevant Interest Period.

 

(c)                                  Subject to paragraph (d) below, if LIBOR is to be determined on the basis of an Alternative Reference Bank Rate but an Alternative Reference Bank does not supply a quotation by the Specified Time, the Alternative Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Alternative Reference Banks.

 

(d)                                 If before close of business in London on the date falling one Business Day after the Quotation Day none or only one of the Alternative Reference Banks supplies a quotation, there shall be no Alternative Reference Bank Rate for the relevant Interest Period.

 

18.3                        Market Disruption

 

(a)                                 If LIBOR is determined otherwise than on the basis of an Alternative Reference Bank Rate and before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of LIBOR then the applicable LIBOR shall be the Alternative Reference Bank Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan and if no Alternative Reference Bank Rate is available for the relevant currency or Interest Period there shall be no LIBOR for that Loan and Clause 18.4 (Cost of Funds) shall apply to that Loan for the relevant Interest Period.

 

(b)                                 If LIBOR is determined on the basis of an Alternative Reference Bank Rate and before close of business in London on the date falling four Business Days after the Quotation Day for the relevant Interest Period of the Loan, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 40 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of LIBOR then Clause 18.4 (Cost of Funds) shall apply to that Loan for the relevant Interest Period.

 

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18.4                        Cost of funds

 

(a)                                 If this Clause 18.4 applies, the rate of interest on the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)                                   the Margin; and

 

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

 

(b)                                 If this Clause 18.4 applies and the Agent or the Company so requires, the Agent and the Company shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(c)                                  Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

 

(d)                                 If this Clause 18.4 applies pursuant to Clause 18.3 (Market Disruption) and:

 

(i)                                     a Lender’s Funding Rate is less than LIBOR; or

 

(ii)                                  a Lender does not supply a quotation by the time specified in paragraph (a)(ii) above,

 

the cost to that Lender of funding its participation in that Loan for that Interest Period shall be deemed, for the purposes of paragraph (a) above, to be LIBOR.

 

(e)                                  If this Clause 18.4 applies pursuant to Clause 18.1 (Unavailability of Screen Rate) but any Lender does not supply a quotation by the time specified in paragraph (a)(ii) above the rate of interest shall be calculated on the basis of the quotations of the remaining Lenders.

 

18.5                        Break Costs

 

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

 

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

 

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19.                               FEES

 

19.1                        Commitment fee

 

(a)                                 The Company shall pay to the Agent (for the account of each Lender) a fee in dollars computed at the rate per annum of 35 per cent. of the applicable Margin on that Lender’s undrawn and available Commitment under the Facility from (and including) the date of this Agreement to (and including) the first Utilisation Date to occur after the date of this Agreement.

 

(b)                                 The accrued commitment fee is payable on the last day of the Availability Period.

 

19.2                        Up-Front fee

 

The Company shall pay to the Original Lender an up-front fee in the amount and at the times agreed in a Fee Letter.

 

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SECTION 6
 ADDITIONAL PAYMENT OBLIGATIONS

 

20.                               TAX GROSS-UP AND INDEMNITIES

 

20.1                        Definitions

 

In this Agreement:

 

“Borrower DTTP Filing” means an HM Revenue & Customs’ Form DTTP2 duly completed and filed by the relevant Borrower, which:

 

(a)                                 where it relates to a UK Treaty Lender that is an Original Lender, the Original Lender provides its scheme reference number and jurisdiction of tax residence to the Borrower on the date of this Agreement and where the Borrower is the Original Borrower, is filed with HM Revenue & Customs  within 30 days of the date of this Agreement or where the Borrower is an Additional Borrower, is filed within 30 days of the date on which that Borrower becomes an Additional Borrower; or

 

(b)                                 where it relates to a UK Treaty Lender that is a New Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of that Lender in the relevant Transfer Certificate or Assignment Agreement, and where the Borrower is the Original Borrower, is filed with HM Revenue & Customs within 30 days of that Transfer Date or where the Borrower is an Additional Borrower, is filed within 30 days of the date on which that Borrower becomes an Additional Borrower.

 

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

 

“Qualifying Lender” means:

 

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

 

(i)                                     a Lender:

 

(A)                               which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or

 

(B)                               in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and within the charge to United Kingdom corporation tax as

 

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respects any payments of interest made in respect of that advance; or

 

(ii)                                  a Lender which is:

 

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

 

(B)                               a partnership each member of which is:

 

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

 

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

 

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

 

(iii)                               a UK Treaty Lender; or

 

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

 

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

 

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

 

(b)                                 a partnership each member of which is:

 

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

 

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

 

(c)                                  a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into

 

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account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.

 

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

 

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

 

“Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 20.2 (Tax gross-up) or a payment under Clause 20.3 (Tax indemnity).

 

“Treaty Lender” means a UK Treaty Lender or a U.S. Treaty Lender as appropriate.

 

“UK Non-Bank Lender” means where a Lender becomes a Party after the day on which this Agreement is entered into, a Lender which gives a Tax Confirmation in the Assignment Agreement or Transfer Certificate which it executes on becoming a Party.

 

“UK Treaty Lender” means a Lender which:

 

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

 

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

 

(c)                                  fulfils any other conditions which must be fulfilled under the UK Treaty by residents of that UK Treaty State for such residents to obtain full exemption from taxation on interest imposed by the jurisdiction of incorporation of the relevant Borrower, subject to the completion of procedural formalities.

 

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

 

“U.S. Person” means a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“U.S. Qualifying Lender” means a Lender which:

 

(a)                                 is a U.S. Person;

 

(b)                                 is not a U.S. Person but is entitled to complete exemption from withholding of U.S. federal income tax on interest payable to it in respect of a Loan;

 

(c)                                  is a U.S. Treaty Lender; or

 

(d)                                 would have fallen within either paragraph (a), (b) or (c) above but for any change after the date of this Agreement in (or in the interpretation,

 

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administration or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority.

 

“U.S. Treaty Lender” means a Lender which:

 

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

 

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

 

(c)                                  fulfils any other conditions which must be fulfilled under the U.S. Treaty by residents of that U.S. Treaty State for such residents to obtain full exemption from taxation on interest imposed by the United States subject to the completion of procedural formalities.

 

“U.S. Treaty State” means a jurisdiction having a double taxation agreement (a “U.S. Treaty”) with the United States which makes provision for full exemption from tax imposed by the United States on interest.

 

“Withholding Form” means U.S. Internal Revenue Service Form W-8BEN, W-8ECI or W-9 (or, in each case, any successor form and, in each case, attached to an IRS Form W-8IMY if required) or any other U.S. Internal Revenue Service form by which a person may claim a complete exemption from withholding of U.S. federal income tax on interest payments to that person and, in the case of a person claiming an exemption under the “portfolio interest exemption”, a statement certifying that such person is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 per cent. shareholder” of the Acceding Borrower (or its “regarded owner” for U.S. federal income tax purposes) within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” that is related to the Acceding Borrower (or its “regarded owner” for U.S. federal income tax purposes) within the meaning of Section 881(c)(3)(C) of the Code.

 

Unless a contrary indication appears, in this Clause 20 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

 

20.2                        Tax gross-up

 

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

 

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

 

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

 

(d)                                 A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the United Kingdom, if on the date on which the payment falls due:

 

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

 

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

 

(A)                               an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a “Direction”) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and

 

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

 

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

 

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

 

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

 

(iv)                              the relevant Lender is a UK Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (i) or (j) (as applicable) below.

 

(e)                                  A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the United States from a

 

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payment to a Lender in respect of a Loan, if on the date on which the payment falls due:

 

(i)                                     that Lender has not complied with its obligations to complete and sign the relevant Withholding Forms under paragraph (f) below;

 

(ii)                                  that Lender was not a U.S. Qualifying Lender on the date it first became a Lender; or

 

(iii)                               that Lender is not or has ceased to be a U.S. Qualifying Lender.

 

(f)                                   Each U.S. Qualifying Lender shall submit to the Acceding Borrower and the Agent two duly completed and signed copies of the relevant Withholding Form no later than 5 days before the date on which the first payment of interest is to be made to such U.S. Qualifying Lender (or if a transfer is to be made to a new U.S. Qualifying Lender within 5 days of a payment of interest, as soon as reasonably practicable after the transfer and in any event prior to the date on which first payment of interest is to be made to such U.S. Qualifying Lender).

 

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

 

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

 

(i)                                     Subject to paragraph (ii) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction and, in particular, a Treaty Lender shall, as soon as reasonably practicable, make and file an appropriate application for relief under the relevant Treaty.

 

(ii)                                  (A)                       A UK Treaty Lender which becomes a Party on the day on which this Agreement is entered into holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence to the relevant Borrower on the date of the Agreement; and

 

(B)                               a New Lender that is a UK Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm

 

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its scheme reference number and its jurisdiction of tax residence in the Transfer Certificate or Assignment Agreement which it executes,

 

and, having done so, that Lender shall be under no obligation pursuant to paragraph (i) above.

 

(i)                                     If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (h)(ii) above and:

 

(i)                                     a Borrower has not made a Borrower DTTP filing in respect of that Lender; or

 

(ii)                                  a Borrower has made a Borrower DTTP Filing in respect of that Lender but:

 

(A)                               that Borrower DTTP filing has been rejected by HM Revenue & Customs; or

 

(B)                               HM Revenue & Customs has not given the Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing,

 

and in each case the Borrower has notified that Lender in writing, that Lender and the Borrower shall co-operate in completing any additional procedural formalities necessary for that Borrower to obtain authorisation to make that payment without a Tax Deduction.

 

(j)                                    If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (h)(ii) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s Commitment or its participation in any Loan unless the Lender otherwise agrees.

 

(k)                                 Each Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of the Borrower DTTP Filing to the Agent for delivery to the relevant Lender.

 

(l)                                     A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives a Tax Confirmation to the Company by entering into this Agreement.

 

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

 

20.3                        Tax indemnity

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(A)                               is compensated for by an increased payment under Clause 20.2 (Tax gross-up);

 

(B)                               would have been compensated for by an increased payment under Clause 20.2 (Tax gross-up) but was not entitled to be so compensated solely because one of the exclusions in paragraph (d) or (e) of Clause 20.2 (Tax gross-up) applied; or

 

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

 

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

 

(d)                                 A Protected Party shall, on receiving a payment from an Obligor under this Clause 20.3, notify the Agent.

 

20.4                        Tax Credit

 

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

 

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

 

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

 

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

 

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20.5                        Lender Status Confirmation

 

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

 

(i)                                     not a Qualifying Lender;

 

(ii)                                  a Qualifying Lender (other than a UK Treaty Lender);

 

(iii)                               a UK Treaty Lender; or

 

(iv)                              a U.S. Qualifying Lender.

 

If a New Lender fails to indicate its status in accordance with this Clause 20.5 then such New Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender or a U.S. Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Company).  For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure of a Lender to comply with this Clause 20.5.

 

(b)                                 The Original Lender confirms for the benefit of each Obligor that it is both a Qualifying Lender and a U.S. Qualifying Lender at the date of this Agreement.

 

20.6                        Stamp taxes

 

The Company shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

 

20.7                        VAT

 

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

 

(b)                                 If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient (the “Relevant Party”) is

 

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required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

 

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

 

(ii)                                  (where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

 

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

 

(d)                                 Any reference in this Clause 20.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994).

 

20.8                        Survival

 

Each party’s obligations under this Clause 20 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, and the repayment, satisfaction or discharge of all other obligations of any Obligor under the Finance Documents.

 

20.9                        FATCA Deduction

 

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

 

(b)                                 Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA

 

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Deduction) notify the Party to whom it is making the payment and, in addition, shall notify the Company, the Agent and the other Finance Parties.

 

21.                               INCREASED COSTS

 

21.1                        Increased costs

 

(a)                                 Subject to Clause 21.3 (Exceptions) the Company shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be such a change in law in accordance with this paragraph (a), regardless of the date enacted, adopted or issued.

 

(b)                                 In this Agreement:

 

“Increased Costs” means:

 

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

 

(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 any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or an Ancillary Commitment or funding or performing its obligations under any Finance Document; and

 

“Basel III” means:

 

(i)                                     the agreement on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International frame for liquidity risk measurement, standards and monitoring” and

 

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“Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

 

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

 

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

 

21.2                        Increased cost claims

 

(a)                                 A Finance Party intending to make a claim pursuant to Clause 21.1 (Increased costs) shall notify the Agent of

 

(b)                                 the event giving rise to the claim, following which the Agent shall promptly notify the Company.

 

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

 

21.3                        Exceptions

 

(a)                                 Clause 21.1 (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 an Obligor;

 

(ii)                                  compensated for by Clause 20.3 (Tax indemnity) (or would have been compensated for under Clause 20.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 20.3 (Tax indemnity) applied);

 

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

 

(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 (but excluding any amendment arising out of Basel III) (“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 Affiliates); or

 

(v)                                 attributable to a FATCA Deduction required to be made by a Party.

 

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(b)                                 In this Clause 21.3 reference to a “Tax Deduction” has the same meaning given to the term in Clause 20.1 (Definitions).

 

22.                               OTHER INDEMNITIES

 

22.1                        Currency indemnity

 

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

 

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

 

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

 

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

 

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

 

22.2                        Other indemnities

 

The Company shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify the Agent, each Lender, each other Finance Party (and/or any Receiver or Delegate) and each Representative of any of the foregoing persons against any cost, loss or liability incurred by it as a result of:

 

(a)                                 the occurrence of any Event of Default;

 

(b)                                 a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 36 (Sharing among the Finance Parties);

 

(c)                                  the execution or delivery of this Agreement, any other Finance Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Agent (and any sub-agent thereof) and its Representatives only, the administration of this Agreement and the other Finance Documents;

 

(d)                                 any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Company or any other Obligor;

 

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

 

(f)                                   a Utilisation (or part of a Utilisation) not being prepaid in accordance with a notice of prepayment given by a Borrower or the Company.

 

22.3                        Indemnity to the Agent

 

The Company shall promptly on written demand indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

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

 

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

 

22.4                        Redemption Notes Indemnity

 

The Company shall, within three Business Days of written demand, indemnify each Finance Party, each of their respective Affiliates and each of their respective directors, officers, employees or agents (each an “Indemnified Party”) against any cost, expense, loss or liability (including legal fees) incurred by that Indemnified Party (otherwise than by reason of the gross negligence or wilful misconduct of that indemnified Party) related to, arising out of or in connection with:

 

(a)                                 the redemption of the Redemption Notes; or

 

(b)                                 the use of proceeds of the Loan.

 

22.5                        Survival

 

Each Party’s obligations under this Clause 22 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, and the repayment, satisfaction or discharge of all other obligations of any Obligor under the Finance Documents.

 

23.                               MITIGATION BY THE LENDERS

 

23.1                        Mitigation

 

(a)                                 Each Finance Party shall, in consultation with and at the request of the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in any Facility ceasing to be available or any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 13.1 (Illegality), Clause 20 (Tax gross-up and indemnities) or Clause 21 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

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

 

23.2                        Limitation of liability

 

(a)                                 The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by such Finance Party under Clause 23.1 (Mitigation).

 

(b)                                 A Finance Party is not obliged to take any steps under Clause 23.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

24.                               COSTS AND EXPENSES

 

24.1                        Transaction expenses

 

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

 

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

 

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

 

24.2                        Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 37.9 (Change of currency), the Company shall, within three Business Days of written demand, reimburse the Agent for the amount of all costs and expenses (including reasonable legal fees) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

24.3                        Enforcement and preservation costs

 

The Company shall, within three Business Days of written demand, pay to each Finance Party and/or Receiver or Delegate Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of or the preservation of any rights under any Finance Document and the Transaction Security and any proceedings instituted by or against the Security Trustee as a consequence of taking or holding the Transaction Security or enforcing these rights.

 

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SECTION 7
 GUARANTEE

 

25.                               GUARANTEE AND INDEMNITY

 

25.1                        Guarantee and indemnity

 

(a)                                 Subject to the limitations and exceptions provided in this Clause 25 or in any Accession Deed by which it became a Guarantor, each Guarantor irrevocably and unconditionally jointly and severally:

 

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

 

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

 

(iii)                             agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 25 if the amount claimed had been recoverable on the basis of a guarantee.

 

(b)                                 Notwithstanding anything to the contrary contained herein or in any other Finance Document, with respect to any obligation of a U.S. Obligor, no CFC Obligor shall guarantee the U.S. Obligor’s obligations herein or under any Finance Document.

 

25.2                        Continuing Guarantee

 

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

 

25.3                        Reinstatement

 

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 25 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

 

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25.4                        Waiver of defences

 

The obligations of each Guarantor under this Clause 25 will not be affected by an act, omission, matter or thing which, but for this Clause 25, would reduce, release or prejudice any of its obligations under this Clause 25 (without limitation and whether or not known to it or any Finance Party) including:

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)                                  any insolvency or similar proceedings.

 

25.5                        Guarantor Intent

 

Without prejudice to the generality of Clause 25.4 (Waiver of defences) but subject to the limitations and exceptions provided in this Clause 25 or any Accession Deed by which it became a guarantor, each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental and of whatsoever nature and whether or not more onerous) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.

 

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25.6                        Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 25.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

25.7                        Appropriations

 

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

 

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

 

(b)                                 hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 25.

 

25.8                        Deferral of Guarantors’ rights

 

(a)                                 Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 25:

 

(i)                                   to be indemnified by an Obligor;

 

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

 

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

 

(iv)                            to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 25.1 (Guarantee and Indemnity);

 

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

 

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

 

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(b)                                 If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust (to the extent it is to do so in accordance with any applicable law to it) for the Finance Parties and shall promptly pay or transfer the same, but subject to the limitations and exceptions provided in this Clause 25 or any Accession Deed by which it became a Guarantor, to the Agent or as the Agent may direct for application in accordance with Clause 37 (Payment mechanics).

 

25.9                        Release of Guarantors’ right of contribution

 

If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the terms of the Finance Documents then on the date such Retiring Guarantor ceases to be a Guarantor:

 

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

 

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

 

25.10                 Additional security

 

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

 

25.11                 Additional Guarantee Limitations

 

This guarantee does not apply to any liability to the extent that it would result in this guarantee constituting unlawful financial assistance within the meaning of sections 678 or 679 of the Companies Act 2006 or any equivalent and applicable provisions under the laws of the jurisdiction of incorporation of the relevant Guarantor and, with respect to any Additional Guarantor, is subject to any limitations set out in the Accession Deed applicable to such Additional Guarantor.

 

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SECTION 8
 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

 

26.                               REPRESENTATIONS

 

Save as expressly stated to the contrary, each Obligor and the Company make the following representations and warranties to each Finance Party at the times specified in Clause 26.33 (Times at which representations are made) and the Company acknowledges that the Finance Parties have entered into this Agreement in reliance on these representations and warranties:

 

26.1                        Status

 

(a)                                 It and each of its Restricted Subsidiaries which is a Material Company is a person, in each case duly incorporated and validly existing under the law of its jurisdiction of incorporation.

 

(b)                                 It and each of its Restricted Subsidiaries which is a Material Company has the power to own its property and other assets and carry on its business as it is being conducted.

 

26.2                        Binding obligations

 

Subject to the Legal Reservations, the obligations expressed to be assumed by it in each Transaction Document to which it is a party are legal, valid, binding and enforceable obligations.

 

26.3                        Non-conflict with other obligations

 

The entry into and performance by it of, and the transactions contemplated by, the Transaction Documents to which it is or will be a party and the granting of the Transaction Security do not and will not conflict with:

 

(a)                                 any law or regulation applicable to it;

 

(b)                                 its constitutional documents; or

 

(c)                                  any agreement or instrument binding upon it or any member of the Restricted Group or any of its or any member of the Restricted Group’s assets (other than on or prior to the Second Amendment Effective Date, the Existing RCF Facilities Agreement, the Existing Notes, the Terminating Hedge Agreements and other agreements relating thereto) to the extent or in a manner that such conflict has a Material Adverse Effect.

 

26.4                        Power and authority

 

(a)                                 It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into and performance of, the Transaction Documents to which it is or will be a party and the transactions contemplated by those Transaction Documents.

 

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(b)                                 No limit on its powers will be exceeded as a result of the borrowing, granting of security or giving of guarantees or indemnities contemplated by the Transaction Documents to which it is or will be a party.

 

26.5                        Validity and admissibility in evidence

 

(a)                                 All Authorisations required or desirable:

 

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

 

(ii)                                  to make the Transaction Documents to which it is or will be a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected (as applicable) and are in full force and effect.

 

(b)                                 All Authorisations required to carry on its business in the ordinary course and in all material respects have been obtained or effected (as applicable) and are in full force and effect except to the extent failure to obtain or effect those Authorisations would have a Material Adverse Effect.

 

26.6                        Insolvency

 

No:

 

(a)                                 corporate action, legal proceeding or other procedure or step described in paragraph (a) of Clause 30.7 (Insolvency proceedings); or

 

(b)                                 creditors’ process described in Clause 30.8 (Creditors’ process),

 

has been taken or, to the knowledge of the Company, threatened in relation to a member of the Restricted Group and none of the circumstances described in Clause 30.6 (Insolvency) applies to a member of the Restricted Group.

 

26.7                        Governing law and enforcement

 

(a)                                 Subject to the Legal Reservations:

 

(i)                                     the choice of New York law as the governing law of Schedule 17 (Restrictive Covenants) will be recognised and enforced in their Relevant Jurisdictions; and

 

(ii)                                  the choice of English law as the governing law of the Finance Documents (save for Schedule 17 (Restrictive Covenants)) will be recognised and enforced in their Relevant Jurisdictions.

 

(b)                                 Subject to the Legal Reservations, any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

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26.8                        No filing

 

Under the laws of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except any filing, recording or enrolling or any tax or fee payable in connection with the Transaction Security or notified to the Agent prior to the date of this Agreement or in the case of an Additional Guarantor prior to its accession to such Finance Documents.

 

26.9                        Deduction of Tax

 

It is not required to make any deduction for or on account of Tax from any payment it may make under any Finance Document to a Lender which is:

 

(a)                                 a Qualifying Lender:

 

(i)                                   falling within paragraph (a)(i) of the definition of Qualifying Lender; or

 

(ii)                                except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, falling within paragraph (a)(ii) of the definition of Qualifying Lender; or

 

(iii)                             falling within paragraph (b) of the definition of Qualifying Lender or;

 

(b)                                 a UK Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

 

26.10                 No Default

 

No Default is continuing.

 

26.11                 Base Case Model

 

The Company:

 

(a)                                 does not regard as unreasonable or unattainable in any material respect any of the forecasts or projections in relation to the Restricted Group set out in the Base Case Model;

 

(b)                                 believes the assumptions taken as a whole upon which the forecasts and projections in relation to the Restricted Group contained in the Base Case Model were reasonable at the time they were made; and

 

(c)                                  has not withheld from any persons responsible for preparing the Base Case Model any material facts requested from it and known to it on the date the relevant request was made.

 

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26.12                 No misleading information

 

From the date of this Agreement, all other written factual information provided pursuant to the Finance Documents (including any amendment or waiver thereof) by any member of the Restricted Group (including its advisers) to the Agent in its capacity as such (other than any factual information contained in any financial statements which information is the subject of any representation or warranty given pursuant to Clause 26.13 (Financial statements)) was as at the date it was provided true, complete and accurate in all material respects and is not misleading in any material respect.

 

26.13                 Financial statements

 

(a)                                 To the best of its knowledge and belief, its Original Financial Statements (if any) were prepared in accordance with GAAP consistently applied.

 

(b)                                 To the best of its knowledge and belief, its Original Financial Statements (if any) give a true and fair view of (or fairly represent in all material respects, where unaudited) its consolidated financial condition and operations during the relevant period.

 

(c)                                  As at the date provided, each set of financial statements delivered pursuant to Clause 27.1 (Financial statements) gives a true and fair view of (in the case of audited financial statements) or fairly represents in all material respects (in the case of unaudited financial statements) its financial condition and operations as at the date at which those financial statements were drawn up.

 

26.14                 No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings or investigations of or before any court, arbitral body or agency which, if reasonably likely to be adversely determined and if so adversely determined would have a Material Adverse Effect have been (to the best of its knowledge and belief) started or threatened against it.

 

26.15                 No breach of laws

 

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

 

(b)                                 No labour disputes are current or, to the best of its knowledge and belief (having made due and careful enquiry), threatened against any member of the Restricted Group which have or could reasonably be expected to have a Material Adverse Effect.

 

26.16                 Environmental and other laws

 

(a)                                 It and each of its Restricted Subsidiaries is in compliance with all Environmental Laws to which it is or they are subject where non-compliance would have a Material Adverse Effect.

 

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(b)                                 To the best of the Company’s knowledge and belief after due enquiry, all Environmental Permits necessary in connection with the ownership and operation of its business as it is currently being conducted and each of its Restricted Subsidiaries’ business and the absence of which would have a Material Adverse Effect have been obtained and are in full force and effect.

 

(c)                                  To the best of the Company’s knowledge and belief after due enquiry, there are no circumstances which could reasonably be expected to prevent it or any of its Restricted Subsidiaries being in compliance with any Environmental Law or any Environmental Permit in a manner or to an extent which would have a Material Adverse Effect.

 

(d)                                 To the best of the Company’s knowledge and belief after due enquiry, there are no past or present acts or omissions of it or any of its Restricted Subsidiaries or events, state of facts or circumstances which have resulted in (or could reasonably be expected to result in) any third party taking any legal proceedings against it or any of its Restricted Subsidiaries under any Environmental Law, including remedial action or the revocation, suspension, variation or non-renewal of any Environmental Permit where in any such case non-compliance would have a Material Adverse Effect.

 

(e)                                  Neither it nor any of its Restricted Subsidiaries has received any statutory notice of any complaints, demands, civil claims, enforcement proceedings, requests for information, or of any action required by any regulatory authority and there are no investigations pending or (to the best of its knowledge and belief after due enquiry) threatened in relation to the failure of it or any of its Restricted Subsidiaries to obtain any Environmental Permit or comply with any Environmental Law, which in any such case relate to matters or circumstances which would have a Material Adverse Effect.

 

26.17                 Taxation

 

Other than those being contested in good faith and where such payment may be lawfully withheld (provided that appropriate cash reserves have been set aside for such payment), no claim is being or, to the best of its knowledge and belief (having made due and careful enquiry), is reasonably likely to be asserted against it (or any of its Restricted Subsidiaries) with respect to Taxes such that a liability of, or claim against it which is reasonably likely to be adversely determined and if adversely determined would have a Material Adverse Effect.

 

26.18                 Security and Financial Indebtedness

 

(a)                                 No Security exists over all or any of the present or future assets of any member of the Restricted Group other than:

 

(i)                                     any Security permitted by this Agreement; and

 

(ii)                                  on or prior to the Second Amendment Effective Date, Security securing the Existing RCF Facilities Agreement, the Existing Notes and the Terminating Hedge Agreements.

 

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(b)                                 No member of the Restricted Group has any Financial Indebtedness outstanding other than (i) as permitted by this Agreement and (ii) on or prior to the Second Amendment Effective Date, Financial Indebtedness under the Existing RCF Facilities Agreement, the Existing Notes and the Terminating Hedge Agreements.

 

26.19                 Ranking

 

Subject to the Legal Reservations and applicable Permitted Liens and Permitted Collateral Liens, the terms of the Intercreditor Agreement and to any Security which is permitted under this Agreement, the Transaction Security ranks or will rank in priority as specified in the relevant Transaction Security Document and is not subject to any prior ranking or pari passu ranking Security.

 

26.20                 Transaction Security

 

Subject to the Legal Reservations, each Transaction Security Document to which it is a party validly creates the Security which is expressed to be created by that Transaction Security Document and evidences the Security it is expressed to evidence provided that no representation or warranty is given concerning whether any Security is of a fixed or floating nature.

 

26.21                 Good title to assets

 

Subject to any Permitted Liens and Permitted Collateral Liens, it and each of its Restricted Subsidiaries has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted.

 

26.22                 Legal and beneficial ownership

 

(a)                                 Subject to any Permitted Liens and Permitted Collateral Liens, as at the time an Obligor enters into a Transaction Security Document it is the sole legal and beneficial owner or lessee or licensee of or is otherwise entitled to use all of the material assets necessary to carry on its business as presently conducted (including, in the case of any shares of any member of the Restricted Group which are the subject of the Transaction Security, but subject to any registrations required to be made by the board of directors of such member of the Restricted Group absolute legal and (where relevant) beneficial ownership thereof).

 

(b)                                 As at the time an Obligor enters into a Transaction Security Document the entire share capital of MUL is legally and beneficially owned by the Company and Red Football Junior Limited free from any claims, third party rights or competing interests other than pursuant to the Transaction Security Documents.

 

26.23                 Shares

 

The shares of any member of the Restricted Group (other than Dormant Subsidiaries) which are subject to the Transaction Security are fully paid and not subject to any option to purchase or similar rights.

 

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26.24                 Intellectual Property

 

In the case of the Company, as of the date of this Agreement, so far as it is aware there are no adverse circumstances relating to the validity, subsistence or use of any of the Restricted Group’s Intellectual Property which would have a Material Adverse Effect.

 

26.25                 Group Structure

 

As of 20 May 2013 and as of the Closing Date, the Group Structure Chart is true, complete and accurate in all material respects.

 

26.26                 Obligors

 

(a)                                 All Material Companies which are members of the Restricted Group (other than Excluded Subsidiaries), Holding Companies of Material Companies (other than the Holding Company of the Company) and any member of the Restricted Group that is a guarantor in respect of the Notes on the Second Amendment Effective Date, are Guarantors; and

 

(b)                                 Subject to paragraph (c) of Clause 29.14 (Guarantors), the aggregate of the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA) of the Guarantors and the aggregate gross assets of the Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-Restricted Group items) represents not less than 85 per cent. of Consolidated EBITDA and consolidated gross assets of all members of the Restricted Group, in each case calculated by reference to the Original Financial Statements of the Company.

 

26.27                 Holding Subsidiary

 

Except as permitted under Clause 12 (Limitation on Holding Company Activities) of Schedule 17 (Restrictive Covenants), neither the Company nor Red Football Junior Limited have traded or incurred any liabilities or commitments (actual or contingent, present or future).

 

26.28                 Accounting reference date

 

The accounting reference date of each member of the Restricted Group is the Accounting Reference Date.

 

26.29                 Centre of main interests and establishments

 

(a)                                 It has its “centre of main interests” (as that term is used in Article 3(1) of The Council of the European Union Regulation No. 1346/2000 on Insolvency Proceedings (the “Regulation”) in England or Wales;

 

(b)                                 It has no “establishment” (as that term is used in Article 2(h) of the Regulation) in any jurisdiction.

 

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26.30                 No adverse consequences

 

(a)                                 It is not necessary under the laws of its Relevant Jurisdictions:

 

(i)                                   in order to enable any Finance Party to enforce its rights under any Finance Document other than pursuant to Clause 20 (Tax gross up and indemnities); or

 

(ii)                                by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document,

 

that any Finance Party should be licensed, qualified or otherwise entitled to carry on business in any of its Relevant Jurisdictions.

 

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

 

26.31                 Pensions

 

Except for the Football League Limited Pension and Life Assurance Scheme and the Professional Footballers’ Pension Scheme (and in the case of the Company only in so far as it is aware:

 

(a)                                 neither it nor any of its Restricted Subsidiaries is or has at any time been an employer (for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both terms as defined in the Pension Schemes Act 1993); and

 

(b)                                 neither it nor any of its Restricted Subsidiaries is or has at any time been “connected” with or an “associate” of (as those terms are used in sections 39 and 43 of the Pensions Act 2004) such an employer.

 

26.32                 Anti-Corruptions Law and Sanctions

 

(a)                                 The Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company and its Subsidiaries and their respective directors, officers, employees, agents affiliates and representatives with Anti-Corruption Laws and applicable Sanctions.

 

(b)                                 The Company and its Subsidiaries and their respective directors and officers and, to the knowledge of the Company, their respective employees, agents, affiliates and representatives are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in the Company or its Subsidiaries being designated as a Sanctioned Person.

 

(c)                                  Neither the Company nor any of its Subsidiaries or any of their respective directors or officers, or to the knowledge of the Company, any employee, agent, affiliate or representative of the Company or any of its Subsidiaries that

 

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will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.

 

(d)                                 No Utilisation, use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

 

26.33                 Times at which representations are made

 

(a)                                 Save where otherwise specified below, all the representations and warranties in this Clause 26 are made to each Finance Party on the date of this Agreement.

 

(b)                                 The Repeating Representations are deemed to be made by each Obligor to each Finance Party on the date of this Agreement, the date of each Utilisation Request and on each Utilisation Date and on the first day of each Interest Period.

 

(c)                                  The Repeating Representations and each of the representations and warranties set out in Clause 26.5 (Validity and admissibility in evidence), Clause 26.8 (No filing), Clause 26.16 (Environmental and other laws), Clause 26.17 (Taxation), Clause 26.18 (Security and Financial Indebtedness), Clause 26.20 (Transaction Security), Clause 26.22 (Legal and beneficial ownership) and Clause 26.31 (Pensions) are deemed to be made by each Additional Obligor to each Finance Party on the day on which it becomes an Additional Obligor.

 

(d)                                 Each representation or warranty deemed to be made after the date of this Agreement shall be made by reference to the facts and circumstances existing at the date the representation or warranty is made.

 

27.                               INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 27 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

In this Clause 27:

 

“Annual Financial Statements” means the financial statements for a Financial Year delivered pursuant to paragraph (a) of Clause 27.1 (Financial statements).

 

“Quarterly Financial Statements” means the financial statements delivered pursuant to paragraph (b) of Clause 27.1 (Financial statements).

 

27.1                        Financial statements

 

The Company shall supply to the Agent in sufficient copies for all the Lenders:

 

(a)                                 within 120 days after the end of each of the Company’s Financial Years (commencing with the Financial Year ending 30 June 2013), annual reports containing the following information with a level of detail that is substantially comparable and similar in scope to the offering memorandum for the Notes (with appropriate revisions, as reasonably determined by the Company to

 

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reflect segment reporting): (i) audited consolidated balance sheets of the Company or its predecessors as of the end of the two most recent Financial Years and audited consolidated income statements and statements of cash flow of the Company for the three most recent Financial Years, including complete footnotes to such financial statements and the report of the Company’s independent auditors on the financial statements; (ii) pro forma income statement and balance sheet information of the Company, together with explanatory footnotes, for any material acquisitions, dispositions or recapitalisations (excluding acquisitions or dispositions of player registrations) that have occurred since the beginning of the most recently completed Financial Year as to which such annual report relates; (iii) an operating and financial review of the audited financial statements, including a discussion of the results of operations (including a discussion by business segment), financial condition and liquidity and capital resources, and a discussion of material commitments and contingencies and critical accounting policies; and (iv) a description of all material affiliate transactions and a description of all material debt instruments; and

 

(b)                                 within 60 days following the end of each of the first three Financial Quarters in each Financial Year of the Company, quarterly reports containing the following information: (i) an unaudited condensed consolidated balance sheet of the Company as of the end of such Financial Quarter and unaudited condensed consolidated statements of income and cash flow of the Company for the quarterly and year to date periods ending on the unaudited condensed consolidated balance sheet date, and the comparable prior year periods for the Company, together with condensed footnote disclosure; (ii) pro forma income statement and balance sheet information of the Company, together with explanatory footnotes, for any material acquisitions, dispositions or recapitalisations (excluding acquisitions or dispositions of player registrations) that have occurred since the beginning of the most recently completed fiscal quarter as to which such quarterly report relates; and (iii) an operating and financial review of the unaudited financial statements (including a discussion by business segment), including a discussion of the consolidated financial condition and results of operations of the Company and any material change between the current quarterly period and the corresponding period of the prior year; and

 

(c)                                  promptly after the closing of any material acquisition, disposition or restructuring of the Company and the Restricted Subsidiaries, taken as a whole (in each case, excluding players unless publicly announced), or any senior management (other than the club manager unless publicly announced) changes at the Company or any Guarantor, or change in auditors of the Company, or any other material event that the Company announces publicly, in each case, a report containing a description of such event.

 

27.2                        Provision and contents of Compliance Certificate

 

(a)                                 The Company shall supply a Compliance Certificate to the Agent with each set of its audited consolidated Annual Financial Statements and each set of its consolidated Quarterly Financial Statements.

 

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(b)                                 Each Compliance Certificate shall set out the matters, calculations and figures required by the form of Compliance Certificate attached in Schedule 9 (Form of Compliance Certificate).

 

(c)                                  Each Compliance Certificate shall be signed by an authorised signatory of the Company and, if required to be delivered with the consolidated Annual Financial Statements of the Company, shall be reported on by the Company’s Auditors in the form agreed by the Company and the Majority Lenders (unless it is such Auditors’ policy not to issue such reports).

 

27.3                        Requirements as to financial statements

 

(a)                                 Each set of financial statements delivered pursuant to Clause 27.1 (Financial statements) shall be prepared in accordance with GAAP.

 

(b)                                 Contemporaneously with the furnishing of each such financial statement discussed above, the Company will also (i) file a press release with the appropriate internationally recognised wire services in connection with such report and (ii) post such report on a publicly accessible website of the Company.

 

27.4                        Budget

 

(a)                                 For so long as the Original Lender and the Amendment Effective Date Lender collectively hold Commitments representing 50 per cent. or more of the original Total Commitments, the Company shall supply to the Agent for the Original Lender (and once the Original Lender has transferred its Commitment in accordance with the terms of this Agreement, the Amendment Effective Date Lender) only, as soon as the same become available but in any event within 75 days after the start of each of its Financial Years, an annual Budget for that Financial Year.

 

(b)                                 The Company shall ensure that each Budget:

 

(i)                                   is in a form reasonably acceptable to the Agent;

 

(ii)                                is prepared in accordance with GAAP and the accounting practices and financial reference periods applied to financial statements under Clause 27.1 (Financial statements); and

 

(iii)                             is accompanied by a reasonably detailed commentary from the Senior Management of the Restricted Group.

 

27.5                        Meetings

 

The Company will invite the Lenders to all public calls (to the extent held) for the holders of any of the Notes and give the Lenders reasonable notice of such calls provided that no Lender (or any other Finance Party) may speak during such calls other than to register their attendance.

 

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27.6                        Unrestricted Subsidiaries

 

If any Subsidiaries of the Company have been designated as Unrestricted Subsidiaries, the information delivered under Clauses 27.1 (Financial statements) will include reasonably detailed information, either on the face of the financial statements or in the footnotes thereto, of the financial condition and results of operations of the Restricted Group separate from that of the Unrestricted Subsidiaries.

 

27.7                        Information: miscellaneous

 

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

 

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

 

(b)                                 promptly upon becoming aware of them, to the extent not covered by paragraph (c) of Clause 27.1 (Financial Statements), the details of any matter that has resulted in or could reasonably likely to result in a Material Adverse Effect;

 

(c)                                  promptly upon becoming aware of it, details of a Change of Control; and

 

(d)                                 promptly, such additional information regarding the business, financial or corporate affairs of the Company or any Subsidiary as the Agent may from time to time reasonably request.

 

27.8                        Notification of default

 

(a)                                 The Company and each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

 

(b)                                 Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate signed by two of its directors on its behalf certifying (without personal liability) that no Event of Default is continuing (or if an Event of Default is continuing, specifying the Event of Default and the steps, if any, being taken to remedy it).

 

27.9                        “Know your customer” checks

 

(a)                                 If:

 

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

 

(ii)                                any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this Agreement; or

 

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

 

obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent, such Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

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

 

(c)                                  The Company shall, by not less than 5 Business Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 33 (Changes to the Obligors).

 

(d)                                 Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Obligor obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the accession of such Restricted Subsidiary to this Agreement as an Additional Obligor.

 

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28.                               FINANCIAL COVENANT

 

28.1                        Financial definitions

 

In this Agreement:

 

“Borrowings” means, at any time, the outstanding principal, capital or nominal amount (including any capitalised interest accretions in respect of any instrument issued at a discount and any other similar amount) of any Financial Indebtedness (other than under paragraph (f) of the definition thereof provided that the principal component of the arrangement to be put in place in connection with unwinding the hedging transactions entered into under the Existing Hedging Agreements will be included in “Borrowings”).

 

“Capital Expenditure” means any expenditure or obligation in respect of expenditure which, in accordance with GAAP, is treated as capital expenditure.

 

“Cashflow” means, in respect of any Financial Year, Consolidated EBITDA for that Financial Year after:

 

(a)                                 adding the amount of any decrease (and deducting the amount of any increase) in Working Capital for that Financial Year;

 

(b)                                 adding the amount of any cash receipts (and deducting the amount of any cash payments) during that Financial Year in respect of any Exceptional Items not already taken account of in calculating Consolidated EBITDA for that Financial Year;

 

(c)                                  adding the amount of any cash receipts during that Financial Year in respect of any Tax rebates or credits and deducting the amount actually paid or due and payable in respect of Taxes during that Financial Year by any member of the Restricted Group;

 

(d)                                 adding (to the extent not already taken into account in determining Consolidated EBITDA) the amount of any dividends or other profit distributions received in cash by any member of the Group during that Financial Year from any entity which is itself not a member of the Group and deducting (to the extent not already deducted in determining Consolidated EBITDA) the amount of any dividends paid in cash during the Financial Year to minority shareholders in members of the Restricted Group;

 

(e)                                  adding the amount of any increase in provisions, other non-cash debits and other non-cash charges (which are not Current Assets or Current Liabilities) and deducting the amount of any non-cash credits (which are not Current Assets or Current Liabilities) in each case to the extent taken into account in establishing Consolidated EBITDA; and

 

(f)                                   deducting the amount of any Capital Expenditure actually made in cash during that Financial Year by any member of the Restricted Group except (in each case) to the extent funded from the proceeds of any Disposal or insurance claims permitted to be retained for this purpose,

 

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and so that no amount shall be added (or deducted) more than once.

 

“Consolidated EBITDA” means, for any Relevant Period, the consolidated profits of the Restricted Group from ordinary activities before taxation in respect of that Relevant Period and (without double counting):

 

(a)                                 before deducting any amount attributable to the amortisation or impairment of intangible assets (including goodwill) or the depreciation or impairment of tangible assets;

 

(b)                                 before deducting any Consolidated Net Finance Charges;

 

(c)                                  before deducting any one-off expenses or charges incurred in connection with the incurrence or issuance of (i) any Financial Indebtedness under or which is permitted by the Finance Documents or (ii) any other equity issuance which is permitted by the Finance Documents;

 

(d)                                 before taking into account any items treated as exceptional or extraordinary items;

 

(e)                                  before taking into account any accrued interest received by or owing to any member of the Restricted Group;

 

(f)                                   before taking into account any realised and unrealised exchange gains and losses including those arising on translation of currency debt;

 

(g)                                  before taking into account any gain or loss arising from an upward or downward revaluation of any asset or arising from the acquisition or disposal of player registrations;

 

(h)                                 after deducting the amount of any profit of any member of the Restricted Group which is attributable to minority interests;

 

(i)                                     after deducting the amount of any profit of any investment or entity (which is not itself a member of the Restricted Group) in which any member of the Restricted Group has an ownership interest to the extent that the amount of such profit included in the financial statements of the Restricted Group exceeds the amount (net of applicable withholding tax) received in cash by members of the Restricted Group through distributions by such investment or entity;

 

(j)                                    after excluding the amount of any profit or loss which is attributable to any Material Disposal made in the Relevant Period; and

 

(k)                                 after deducting, to the extent not already taken into account, all rent and other property costs of a revenue nature,

 

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

 

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“Consolidated Net Finance Charges” means, for any Relevant Period, the aggregate amount of interest, all regular or periodic commission, fees or discounts in the nature of interest accrued in respect of Borrowings of the Restricted Group in respect of that Relevant Period and (without double counting):

 

(a)                                 excluding any such obligations owed to any other member of the Restricted Group;

 

(b)                                 including the interest element whether paid or payable, in respect of leasing and hire purchase payments under lease or hire purchase arrangements which would, in accordance with GAAP, be treated as finance or capital leases;

 

(c)                                  including any accrued commission, fees, discounts and other finance payments paid or payable by any member of the Restricted Group under any interest rate hedging arrangement;

 

(d)                                 deducting any accrued commission, fees, discounts and other finance payments owing to or received by any member of the Restricted Group under any interest rate hedging instrument;

 

(e)                                  deducting any accrued interest owing to or received by any member of the Restricted Group on any deposit or bank account or in respect of Cash Equivalent Investments; and

 

(f)                                   excluding any up-front arrangement fees, up-front underwriting fees, up-front commitment fees, up-front participation fees or up-front agency fees paid in connection with the Facility, the RCF Facilities Agreement, the Notes issued on the Second Amendment Effective Date or the Existing Notes issued on the Closing Date by any member of the Restricted Group (except where any such fee is in excess of a reasonable market rate).

 

“Current Assets” means the aggregate (on a consolidated basis) of all inventory, work in progress, trade and other receivables of each member of the Restricted Group including prepayments in relation to operating items and sundry debtors (but excluding Cash) expected to be realised within twelve months from the date of computation but excluding amounts in respect of:

 

(a)                                 receivables in relation to Tax;

 

(b)                                 Exceptional Items and other non-operating items;

 

(c)                                  insurance claims; and

 

(d)                                 any interest owing to any member of the Restricted Group.

 

“Current Liabilities” means the aggregate (on a consolidated basis) of all liabilities (including trade creditors, accruals and provisions) of each member of the Restricted Group expected to be settled within twelve months from the date of computation but excluding amounts in respect of:

 

(a)                                 liabilities for Borrowings and Consolidated Net Finance Charges;

 

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(b)                                 liabilities for Tax;

 

(c)                                  Exceptional Items and other non-operating items;

 

(d)                                 insurance claims; and

 

(e)                                  liabilities in relation to dividends declared but not paid by the Company or by a member of the Restricted Group in favour of a person which is not a member of the Restricted Group.

 

“Exceptional Items” means any exceptional, one off, non-recurring or extraordinary items which represent gains or losses including those arising on:

 

(a)                                 the restructuring of the activities of an entity and reversals of any provisions for the cost of restructuring;

 

(b)                                 disposals, revaluations, write downs or impairment of non-current assets or any reversal of any write down or impairment; and

 

(c)                                  disposals of assets associated with discontinued operations.

 

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

 

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

 

“Financial Year” means the annual accounting period of the Restricted Group ending on or about 30 June in each year.

 

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

 

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

 

“Total Net Debt” means, at any time, the aggregate amount of all obligations of the Restricted Group for or in respect of the principal amount of Borrowings but:

 

(a)                                 excluding any such obligations to any other member of the Restricted Group;

 

(b)                                 Subordinated Liabilities (as such term is defined in the Intercreditor Agreement) shall not be included in Borrowings;

 

(c)                                  including, in the case of finance leases, only the capitalised value thereof; and

 

(d)                                 deducting the aggregate amount of Cash and Cash Equivalent Investments held by any member of the Restricted Group at that time,

 

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

 

“Total Net Leverage Ratio” means the ratio of Total Net Debt to Consolidated EBITDA.

 

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“Working Capital” means, on any date, Current Assets less Current Liabilities.

 

28.2                        Financial condition

 

The Company shall ensure that, for each Relevant Period, Consolidated EBITDA for such Relevant Period is not less than £65.0 million, subject to Clause 28.4 (Champions League Non Qualification Event).

 

28.3                        Financial testing

 

Subject to Clause 28.4 (Champions League Non Qualification Event) below, the financial covenant set out in Clause 28.2 (Financial condition) shall be calculated in accordance with GAAP and tested by reference to each of the financial statements delivered pursuant to paragraphs (a) and (b) of Clause 27.1 (Financial Statements) and/or each Compliance Certificate delivered pursuant to Clause 27.2 (Provision and contents of Compliance Certificate).

 

28.4                        Champions League Non Qualification Event

 

(a)                                 For the purposes of calculating the financial covenant set out in Clause 28.2 (Financial condition), if a Champions League Non Qualification Event occurs, the Company may elect, at any time prior to the end of the Financial Year in which such Champions League Non Qualification Event occurs, to adjust the definition of Consolidated EBITDA for each Financial Quarter falling in the Financial Year in respect of which the first team of MUFC is not in the first round group stages (or its equivalent from time to time) of the Champions League by adding back an amount equal to “X” in each such Financial Quarter (the “Adjusted Quarters”) where:

 

“X” corresponds to the amount set out in Schedule 16 (Table of Values for X) for that Financial Quarter minus the following:

 

(i)                                   the net amount received by the Restricted Group in that Financial Quarter in respect of matches (both home and away) and media payments relating to UEFA cup performances; and

 

(ii)                                the net amount of any reduction to player salaries in that Financial Quarter arising out of the existing contractual provisions as a result of the Champions League Non Qualification Event.

 

(b)                                 At the same time as the Company makes an election under paragraph (a), it shall supply to the Agent a certificate signed by a director of the Company (i) confirming the value of X and the amount of each Adjustment and setting out (in reasonable detail) computation of those amounts and (ii) attaching a copy of the Champions League Adjustment Spreadsheet (following the Adjustments).

 

(c)                                  If the Majority Lenders give notice to the Agent that they do not agree with the calculations of any of the Adjustments contained in the certificate described in paragraph (b) above (acting reasonably), the Company and the Agent will consult in good faith for a period of not more than 10 Business Days with a view to correcting the calculations of the Adjustments.

 

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(d)                                 If agreement has not been reached within the 10 Business Day period referred to in paragraph (c) above then, at the request of the Majority Lenders (and at the expense of the Company), the Agent may appoint an auditor of international repute (in consultation with the Company) to determine the amount of the Adjustments (and, consequently, the value of “X”) and such determination shall (in the absence of manifest error) be binding on the Parties.

 

(e)                                  For the avoidance of doubt, for the purposes of calculating the financial covenant set out in Clause 28.2 (Financial condition) only, Consolidated EBITDA in any Relevant Period which contains one or more Adjusted Quarters shall be calculated using the adjusted values of Consolidated EBITDA set out in paragraph (a) above for each such Adjusted Quarter.

 

(f)                                   The above election may only be made twice over the life of the Facility and may not be made during two consecutive Financial Years.

 

29.                               GENERAL UNDERTAKINGS

 

The undertakings in this Clause 29 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

29.1                        Restrictive Covenants

 

Each Obligor shall comply with the covenants set out in Schedule 17 (Restrictive Covenants).

 

29.2                        Authorisations

 

Each Obligor shall promptly:

 

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

 

(b)                                 supply (on request), certified copies to the Agent of,

 

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

 

(i)                                     enable it to perform its obligations under the Finance Documents;

 

(ii)                                  subject to the Legal Reservations, ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and

 

(iii)                               enable it to carry on its business in the ordinary course except to the extent failure to do so has a Material Adverse Effect.

 

29.3                        Compliance with laws

 

Each Obligor shall comply in all respects with all laws to which it is subject, where failure so to comply has a Material Adverse Effect.

 

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29.4                        Senior Unsecured Notes

 

The Company shall ensure that:

 

(a)                                 no scheduled principal payments with respect to Senior Unsecured Notes (as defined in the Intercreditor Agreement) fall due prior to the date falling six months after the Termination Date;

 

(b)                                 any Senior Unsecured Notes are not secured by any Security over any shares in any member of the Group or any asset of any member of the Group other than security over (i) the shares in the Senior Unsecured Note Issuer and any direct Subsidiary of the Company and (ii) any Senior Unsecured Note Proceeds Loan (as defined in the Intercreditor Agreement) and which is subject to, and is treated in all respects for the purposes of, the Intercreditor Agreement as Shared Security (as defined therein);

 

(c)                                  no member of the Group owes any Financial Indebtedness to a Senior Unsecured Issuer other than pursuant to a Senior Unsecured Note Proceeds Loan (as defined in the Intercreditor Agreement);

 

(d)                                 the Company shall ensure that any Senior Unsecured Notes are only issued or borrowed by the Senior Unsecured Note Issuer which is (and which remains at all times when any Senior Unsecured Notes issued or borrowed by it remain outstanding):

 

(i)                                   a Guarantor;

 

(ii)                                not a Borrower or the issuer or borrower of any Senior Secured Debt; and

 

(iii)                             other than Permitted Senior Unsecured Issuer Activities, has no assets, liabilities or business other than as permitted by this Clause 29 or in connection with the Senior Unsecured Notes (including any Senior Unsecured Notes Proceeds Loan) or reasonably incidental thereto and which does not directly or indirectly own any shares or equivalent ownership interests in any member of the Group; and

 

(e)                                  no member of the Group transfers any assets or makes any payment to a Senior Unsecured Note Issuer other than (without double counting):

 

(i)                                   as permitted by Clause 6.3 (Permitted Senior Unsecured Note Payments) and Clause 10.2(b) (Permitted Payments: Senior Unsecured Notes Proceeds Liabilities) of the Intercreditor Agreement; or

 

(ii)                                (if no Event of Default is continuing or would result from the making of the relevant payment) payments reasonably required to allow the Senior Unsecured Issuer to pay when due amounts payable by it (A) with respect to Permitted Senior Unsecured Issuer Activities or (B) permitted by the Agent (acting on the instructions of the Majority Lenders (acting reasonably)).

 

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29.5                        [INTENTIONALLY LEFT BLANK]

 

29.6                        Taxation

 

Each Obligor shall (and the Company shall ensure that each member of the Restricted Group shall) duly and punctually pay and discharge all Taxes (or, where payments of Taxes must be made by reference to estimated amounts, such estimated Tax (calculated in good faith) as due and payable for the relevant period) imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

(a)                                 such payment is being contested in good faith;

 

(b)                                 adequate reserves are being maintained for those Taxes and the costs required to contest them to the extent required by GAAP;

 

(c)                                  such payment can be lawfully withheld; and

 

(d)                                 no Obligor may change its residence for Tax purposes where to do so would be materially prejudicial to the interests of the Lenders (taken as a whole) under the Finance Documents.

 

29.7                        Change of business

 

The Company shall procure that no substantial change is made to the general nature of the business of the Company, the Obligors or the Restricted Group (taken as a whole) from that carried on by the Restricted Group at the date of this Agreement.

 

29.8                        Pari passu ranking

 

Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party held against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies and the Group’s Football Creditors in relation to matters set out in the Premier League Handbook.

 

29.9                        Insurance

 

(a)                                 Each Obligor shall (and the Company shall ensure that each member of the Restricted Group will) maintain insurances (other than in respect of permanent disability for players occurring when players are playing, practising or training for a member of the Restricted Group) on and in relation to its business and assets against those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

 

(b)                                 All insurances must be with reputable independent insurance companies or underwriters.

 

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29.10                 Sanctions

 

(a)                                 The Company will maintain in effect and enforce policies and procedures designed to ensure compliance by the Company, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

 

(b)                                 A Borrower will not request any Utilisation, and a Borrower shall not use, and the Company shall procure that no Obligor and its or their respective directors, officers, employees, agents, affiliates and representatives and, to the extent it has the power to so procure, joint venture partners shall not use, the proceeds of any Utilisation:

 

(i)                                     in furtherance of an offer, payment, promise to pay, or authorisation of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws;

 

(ii)                                  for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country; or

 

(iii)                               in any manner that would result in the violation of  any Sanctions applicable to any Party hereto.

 

29.11                 Access

 

While an Event of Default is continuing (or where the Agent reasonably suspects an Event of Default is continuing) each Obligor shall and the Company shall ensure that each member of the Restricted Group (subject to any confidentiality or secrecy obligations under this Agreement and all applicable laws) will permit the Agent and/or accountants or other professional advisers and contractors of the Agent to have access at all reasonable times during normal business hours (excluding match days) and on reasonable notice (for a reasonable period) at the reasonable cost of the Company to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its Senior Management and independent public accountants, provided that in exercising such right, the Agent and/or accountants or other professional advisers and contracts (as appropriate) of the Agent shall have regard for the need to keep disruption to the business to a minimum.

 

29.12                 [INTENTIONALLY LEFT BLANK]

 

29.13                 Amendments

 

In the period prior to the Original Lender making any assignment, transfer or sub-participation of any of its Commitments under this Agreement on its own accord (and such assignment, transfer or sub-participation is not at any Obligor’s request), no Obligors shall (and the Company shall ensure that no member of the Restricted Group will) amend, vary, novate, supplement, supersede, waive or terminate any term of:

 

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(a)                                 the Note Documents, so as to bring forward the maturity or any amortisation of the Notes or reduce the Weighted Average Life to Maturity (as defined in Schedule 17 (Restrictive Covenants)) of the Notes;

 

(b)                                 the RCF Facilities Agreement; or

 

(c)                                  the Existing Hedging Agreements,

 

except in a way which is not reasonably likely to materially and adversely affect the interests of the Lenders.

 

29.14                 Guarantors

 

(a)                                 The Company shall ensure that at all times:

 

(i)                                     Subject to the Agreed Security Principles, all Material Companies which are members of the Restricted Group (other than an Excluded Subsidiary), Holding Companies of Material Companies (other than the Holding Company of the Company) and any member of the Restricted Group that is or becomes a guarantor in respect of the Notes, are Guarantors (in the case of any member of the Restricted Group that is or becomes a guarantor in respect of the Notes, simultaneously to becoming guarantors in respect of the Notes); and

 

(ii)                                  subject to paragraph (d) below, the aggregate of the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA) of the Guarantors and the aggregate gross assets of the Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-Restricted Group items) represents not less than 85 per cent. of Consolidated EBITDA and consolidated gross assets of all members of the Restricted Group ((in each case not including the Excluded Subsidiaries)), in each case calculated by reference (i) to the Original Financial Statements of the Company prior to the Closing Date; and (ii) thereafter, with each set of audited annual financial statements delivered under Clause 27.1 (Financial Statements) (the “Guarantor Coverage Test”).

 

(b)                                 The Company shall not have any obligation to procure that any member of the Restricted Group becomes an Additional Guarantor unless the Annual Financial Statements demonstrate that the same would be necessary in order to comply with the requirements of this Clause 29.14.

 

(c)                                  If the Guarantor Coverage Test is not complied with as at the time of delivery of any Compliance Certificate accompanying the Annual Financial Statements, no Default will occur provided that (subject to the Agreed Security Principles), the Company procures that additional members of the Group become Guarantors within 30 Business Days (or such longer period agreed between the Agent (acting reasonably) and the Company) of the delivery of such Compliance Certificate so that, when retested at the end of such 30 Business Day period (or if agreed, such longer period) by reference to

 

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the Annual Financial Statements accompanying such Compliance Certificate, the Guarantor Coverage Test is complied with.

 

(d)                                 The Company need only perform its obligations under paragraph (a) above, to the extent it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s directors or other management.  Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability.  This includes agreeing to a limit on the amount guaranteed.  The Agent may (but shall not be obliged to) agree to such a limit if, in its opinion, to do so would avoid the relevant unlawfulness or personal liability.

 

(e)                                  Any member of the Restricted Group (other than an Excluded Subsidiary) that becomes a Material Company and any Material Company (other than an Excluded Subsidiary) acquired in accordance with this Agreement after the Second Amendment Effective Date shall, subject to the Agreed Security Principles, become a Guarantor and grant Security as the Agent may require and shall accede to the Intercreditor Agreement within 30 Business Days (or such longer period agreed between the Agent (acting reasonably) and the Company) of delivery of any Compliance Certificate accompanying the audited annual financial statements delivered under Clause 27.1 (Financial Statements) or within 20 Business Days of its acquisition, as the case may be.

 

(f)                                   Nothing in this Agreement shall require any Excluded Subsidiary to accede as a Guarantor for so long as it is an Excluded Subsidiary.

 

29.15                 [INTENTIONALLY LEFT BLANK]

 

29.16                 Further assurance

 

(a)                                 For the benefit of the Finance Parties, each Obligor shall (and the Company shall procure that each member of the Restricted Group shall) at all times promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Trustee may reasonably specify (and in such form as the Security Trustee may reasonably require in favour of the Security Trustee or its nominee(s)):

 

(i)                                     to perfect the Security created or intended to be created under or evidenced by the Transaction Security Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights powers and remedies of the Security Trustee or the Finance Parties provided by or pursuant to the Finance Documents or by law;

 

(ii)                                  to confer on the Security Trustee or confer on the Finance Parties Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security intended to be

 

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conferred by or pursuant to the Transaction Security Documents; and/or

 

(iii)                               to facilitate the realisation of the assets which are, or are intended to be, the subject of the Transaction Security.

 

(b)                                 Each Obligor shall (and the Company shall procure that each member of the Restricted Group shall) at all times take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Trustee or the Finance Parties by or pursuant to the Finance Documents.

 

(c)                                  The Company need only perform its obligations under paragraphs (a) and (b) above, to the extent it is not unlawful and would not result in personal liability for that person’s directors or other management.  Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability.

 

29.17                 Sponsorship Contracts and Arrangements

 

The Company shall ensure no Unrestricted Subsidiary will:

 

(a)                                 enter into any sponsorship contract and/or arrangement; or

 

(b)                                 have transferred, assigned or novated to it any sponsorship contract and/or arrangement by any member of the Restricted Group.

 

For the avoidance of doubt, sponsorship contracts and/or arrangements shall not include contracts and/or arrangements relating to (i) paragraphs (a) and (c) of the definition of New Holdco Business or (ii) the provision or supply of content, services or other products.

 

30.                               EVENTS OF DEFAULT

 

Each of the events or circumstances set out in this Clause 30 (save for Clause 30.13 (Acceleration)) is an Event of Default.

 

30.1                        Non-payment

 

An Obligor does not pay:

 

(a)                                 on the due date any amount of principal payable pursuant to a Finance Document; or

 

(b)                                 within 30 days of the due date, any other amount payable pursuant to a Finance Document,

 

at the place at and in the currency in which it is expressed to be payable unless, in the case of a payment of principal, its failure to pay is caused by administrative or technical error or a Disruption Event.

 

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30.2                        Breach of certain obligations

 

Any requirement of Clause 28 (Financial covenant) is not satisfied.

 

30.3                        Other obligations

 

An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 30.1 (Non-payment) and Clause 30.2 (Breach of certain obligations)) unless such non-compliance is capable of remedy and is remedied within 60 days of the earlier of the Agent giving written notice thereof to the Company or any Obligor becoming aware of the failure to comply.

 

30.4                        Misrepresentation

 

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or in any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading (in the case of any representation or statement which is not subject to a materiality threshold in accordance with its terms, in any material respect) when made or deemed to be made and, if the circumstances causing such misrepresentation are capable of remedy within such period, such Obligor shall have failed to remedy such circumstances within 60 days after the earlier of the Agent giving written notice to the Company or the Company becoming aware of such misrepresentation.

 

30.5                        Cross default

 

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

 

(b)                                 Any Financial Indebtedness of any member of the Restricted Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

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

 

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

 

(e)                                  No Event of Default will occur under this Clause 30.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than £25.0 million (or its equivalent in any other currency or currencies).

 

30.6                        Insolvency

 

(a)                                 A Material Company is unable or admits inability to pay its debts as they fall due or is declared to be unable to pay its debts under applicable law, suspends

 

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or threatens to suspend making payments on any of its debts as they fall due or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

(b)                                 Any Material Company is or is deemed to be insolvent under any applicable law (other than Section 123(2) of the Insolvency Act 1986) or (save the extent the same is frivolous or vexatious or is discharged, stayed or dismissed within 30 days of commencement) or where written demand is made in respect of an aggregate amount of not less than £5.0 million (taking into account contingent and prospective liabilities).

 

(c)                                  A moratorium is declared in respect of any indebtedness of any Material Company.

 

30.7                        Insolvency proceedings

 

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

 

(i)                                     the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any Material Company other than a solvent liquidation or reorganisation of any Material Company which is not an Obligor or a Permitted Reorganisation;

 

(ii)                                  a composition, compromise, assignment or arrangement with any creditor of any Material Company;

 

(iii)                               the appointment of a liquidator (other than in respect of a solvent liquidation of a Material Company which is not an Obligor or a Permitted Reorganisation), receiver, administrator, administrative receiver, compulsory manager or other similar officer in respect of any Material Company or any of its assets having an aggregate value of £5.0 million or greater;

 

(iv)                              enforcement of any Security over any assets having an aggregate value of £3.0 million or greater of any Material Company,

 

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

 

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

 

(i)                                     any procedure or step in relation to a Dormant Subsidiary;

 

(ii)                                  any winding-up petition or (to the extent relevant) other procedural step in relation to the appointment of a receiver, administrator, administrative receiver, compulsory manager or similar officer (but not excluding the actual appointment thereof) which is frivolous or vexatious or is discharged, stayed or dismissed within 60 days of commencement; or

 

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(iii)                               any application for the appointment of an administrator is discharged at least five days prior to the first hearing of that application.

 

30.8                        Creditors’ process

 

Any expropriation, attachment, sequestration, distress or execution (including enforcement of Security) or any analogous process in any jurisdiction affects any asset or assets of Material Companies having an aggregate value of £25.0 million and is not discharged within 60 days.

 

30.9                        Unlawfulness and invalidity

 

(a)                                 It is or becomes unlawful for an Obligor or, in the case of the Intercreditor Agreement, a member of the Restricted Group, to perform any of its material obligations under any of the Finance Documents, or any of the Transaction Security created or expressed to be created or evidenced by the Transaction Security Documents ceases to be valid or becomes unlawful.

 

(b)                                 Any obligation or obligations of any Obligor under any Finance Documents or any member of the Restricted Group under the Intercreditor Agreement are not or cease to be legal, valid, binding or enforceable (other than as provided in the Legal Reservations) and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

 

(c)                                  Any Finance Document ceases to be in full force and effect or any Transaction Security or any subordination created under this Agreement or the Intercreditor Agreement ceases to be legal, valid, binding, enforceable or effective (other than as provided in the Legal Reservations) and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

 

30.10                 Intercreditor Agreement

 

(a)                                 Any member of the Restricted Group or Subordinated Creditor (as defined in the Intercreditor Agreement) fails to comply with the provisions of, or does not perform its obligations under, the Intercreditor Agreement; or

 

(b)                                 a representation or warranty given by a member of the Restricted Group or Subordinated Creditor in the Intercreditor Agreement is incorrect in any material respect,

 

and, if the non-compliance or circumstances giving rise to the misrepresentation are capable of remedy, it is not remedied within 15 Business Days of the earlier of the Agent giving notice to that party or that party becoming aware of the non-compliance or misrepresentation.

 

30.11                 Repudiation

 

An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance Document.

 

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30.12                 Material adverse change

 

Any event or circumstance occurs which has a Material Adverse Effect.

 

30.13                 Acceleration

 

Subject to Clause 4.3 (Certain Funds), on and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Company:

 

(a)                                 cancel all or part of the Total Commitments at which time they shall immediately be cancelled;

 

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

 

(c)                                  declare that all or part of the Utilisations be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

 

(d)                                 exercise or direct the Security Trustee to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

 

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SECTION 9
 CHANGES TO PARTIES

 

31.                               CHANGES TO THE LENDERS

 

31.1                        Assignments and transfers by the Lenders

 

Subject to this Clause 31 a Lender (the “Existing Lender”) may:

 

(a)                                 assign any of its rights;

 

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

 

(c)                                  enter into a sub-participation in relation to its rights and obligations,

 

under any Finance Document to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets or to any other person (the “New Lender”), which in each case, unless an Event of Default is continuing, is a U.S. Qualifying Lender (as defined in Clause 20.1 (Definitions)).

 

31.2                        Conditions of assignment or transfer

 

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

 

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

 

(ii)                                  if the Existing Lender disposing of its interest by sub-participation in any commitments or undertakings retains (x) all of the voting rights with respect to such commitments or undertakings and (y) more than two thirds of the economic interest in the commitments or undertakings; or

 

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

 

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

 

(c)                                  Unless the Company and the relevant Existing Lender otherwise agree in respect of transfers between Existing Lenders and their Affiliates a transfer of part of a Commitment or Commitments by the Existing Lender must be of a minimum amount of $1.0 million, provided that if the Existing Lender retains any Commitment or Commitments it is (or they are) of a minimum amount of $1.0 million in aggregate across the Facility.

 

(d)                                 In determining whether the requirements of paragraph (c) above as to the minimum amount in respect of the Facility to be retained by an Existing

 

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Lender are satisfied, the amount of any Commitment or Commitments of any Affiliate of the relevant Existing Lender to be retained shall be aggregated with the Commitment or Commitments of the Existing Lender to be transferred and/or retained (as the case may be).

 

(e)                                  An assignment will only be effective on:

 

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

 

(ii)                                  the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement; and

 

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

 

(f)                                   A transfer will only be effective on:

 

(i)                                     the New Lender entering into the documentation required for it to accede as a party to the Intercreditor Agreement; and

 

(ii)                                  procedure set out in Clause 31.5 (Procedure for transfer) being complied with.

 

(g)                                  If:

 

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

 

(ii)                                  as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 20 (Tax gross-up and indemnities) or Clause 21 (Increased Costs),

 

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.  This paragraph (g) shall not apply in relation to Clause 20.2 (Tax gross-up), to a Treaty Lender that has included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (h)(ii)(B) of Clause 20.2 (Tax gross-up) if the Obligor making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender.

 

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

 

31.3                        Assignment or transfer fee

 

Unless the Agent otherwise agrees and excluding an assignment or transfer (i) to an Affiliate of a Lender or (ii) to a Related Fund, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of $3,500.

 

31.4                        Limitation of responsibility of Existing Lenders

 

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

 

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

 

(ii)                                  the financial condition of any Obligor;

 

(iii)                               the performance and observance by any Obligor or any other member of the Restricted Group of its obligations under the Transaction Documents or any other documents; or

 

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

 

and any representations or warranties implied by law are excluded.

 

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

 

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

 

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

 

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

 

(i)                                     accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 31; or

 

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

 

31.5                        Procedure for transfer

 

(a)                                 Subject to the conditions set out in Clause 31.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender and update the Register in accordance with Clause 34.18 (Register). The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

 

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

 

(c)                                  Subject to Clause 31.9 (Pro rata interest settlement), on the Transfer Date:

 

(i)                                     to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents and in respect of the Transaction Security each of the Obligors and other members of the Restricted Group party to any Finance Document and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and in respect of the Transaction Security and their respective rights against one another under the Finance Documents and in respect of the Transaction Security shall be cancelled (being the “Discharged Rights and Obligations”);

 

(ii)                                  each of the Obligors and other members of the Restricted Group party to any Finance Document and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor or other member of the Restricted Group and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender; and

 

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

 

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31.6                        Procedure for assignment

 

(a)                                 Subject to the conditions set out in Clause 31.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

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

 

(c)                                  Subject to Clause 31.9 (Pro rata interest settlement), on the Transfer Date:

 

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

 

(ii)                                  the Existing Lender will be released from the obligations (the “Relevant Obligations”) expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound in respect of the Transaction Security); and

 

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

 

(d)                                 Lenders may utilise procedures other than those set out in this Clause 31.6 to assign their rights under the Finance Documents (but not, without the consent of the Company or unless in accordance with Clause 31.5 (Procedure for transfer), to obtain a release by each Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 31.2 (Conditions of assignment or transfer).

 

31.7                        Copy of Transfer Certificate or Assignment Agreement to Company

 

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

 

31.8                        Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 31, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or

 

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otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

 

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

 

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

 

except that no such charge, assignment or Security shall:

 

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

 

(ii)                                  require any payments to be made by an Obligor or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

 

31.9                        Pro rata interest settlement

 

If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 31.5 (Procedure for transfer) or any assignment pursuant to Clause 31.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

 

(a)                                 any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (“Accrued Amounts”) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at six-Monthly intervals after the first day of that Interest Period); and

 

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

 

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

 

(ii)                                  the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 31.10, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

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32.                               [INTENTIONALLY LEFT BLANK]

 

33.                               CHANGES TO THE OBLIGORS

 

33.1                        Assignment and transfers by Obligors

 

No Obligor or any other member of the Restricted Group may assign any of its rights or transfer any of its rights or obligations under the Finance Documents (save in the case of a Permitted Change of Borrower).

 

33.2                        Additional Borrowers

 

(a)                                 Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 27.9 (“Know your customer” checks), the Company may request that any of its Subsidiaries which is a member of the Restricted Group becomes an Additional Borrower.  That Subsidiary shall become an Additional Borrower if:

 

(i)                                     it is the Acceding Borrower or all the Lenders approve the addition of that Subsidiary;

 

(ii)                                  the Company and that Subsidiary delivers to the Agent a duly completed and executed Accession Deed;

 

(iii)                               the Company confirms that no Event of Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; and

 

(iv)                              the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions precedent) in relation to that Additional Borrower, each in form and substance satisfactory to the Agent or in relation to the Acceding Borrower, all the documents and other evidence listed in Schedule 1 (Conditions Precedent to the Effective Date) to the Third Amendment and Restatement Agreement.

 

(b)                                 The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II of Schedule 2 (Conditions precedent) or in relation to the Acceding Borrower, all the documents and other evidence listed in Schedule 1 (Conditions Precedent to the Effective Date) to the Third Amendment and Restatement Agreement.

 

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

 

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33.3                        Resignation of a Borrower

 

(a)                                 The Company may request that a Borrower ceases to be a Borrower by delivering to the Agent a Resignation Letter.

 

(b)                                 The Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if:

 

(i)                                     the Company has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter; and

 

(ii)                                  the relevant Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents,

 

whereupon that company shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents as a Borrower.

 

33.4                        Additional Guarantors

 

(a)                                 Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 27.9 (“Know your customer” checks), the Company may request that any of its Subsidiaries which is a member of the Restricted Group become a Guarantor.

 

(b)                                 A member of the Restricted Group shall become an Additional Guarantor if:

 

(i)                                     the Company and the proposed Additional Guarantor deliver to the Agent a duly completed and executed Accession Deed; and

 

(ii)                                  the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.

 

(c)                                  The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent).

 

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

 

33.5                        Resignation of a Guarantor

 

(a)                                 In this Clause 33.5 and Clause 33.7 (Resignation and release of Security on disposal), “Third Party Disposal” means the disposal of an Obligor to a person which is not a member of the Restricted Group where that disposal is permitted under this Agreement (and the Company has confirmed this is the case) or made with the approval of the Majority Lenders.

 

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(b)                                 The Company may request that a Guarantor (other than the Company and (for so long as it directly owns any shares in MUL) Red Football Junior Limited) ceases to be a Guarantor by delivering to the Agent a Resignation Letter if:

 

(i)                                     that Guarantor is being disposed of by way of a Third Party Disposal or a Permitted Reorganisation;

 

(ii)                                  that Guarantor has become an Unrestricted Subsidiary in accordance with the terms of this Agreement;

 

(iii)                               the Guarantor is subject to a merger and/or consolidation not prohibited under Schedule 17 (Restrictive Covenants); or

 

(iv)                              all the Lenders have consented to the resignation of that Guarantor.

 

(c)                                  The Agent shall accept a Resignation Letter and notify the Company and the Lenders of its acceptance if:

 

(i)                                     the Company has confirmed that no Event of Default is continuing or would result from the acceptance of the Resignation Letter; and

 

(ii)                                  no payment is due from the Guarantor under Clause 25.1 (Guarantee and indemnity).

 

(d)                                 Subject to paragraph (e) below, upon notification by the Agent to the Company of its acceptance of the Resignation Letter, that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents as a Guarantor.

 

(e)                                  The resignation of a Guarantor which is the subject of a Third Party Disposal, Permitted Reorganisation or designation as an Unrestricted Subsidiary shall not take effect (and the Guarantor will continue to have rights and obligations under the Finance Documents) until the date on which the Third Party Disposal, Permitted Reorganisation or, as the case may be, designation as an Unrestricted Subsidiary takes effect.

 

33.6                        Repetition of Representations

 

Delivery of an Accession Deed constitutes confirmation by the relevant Restricted Subsidiary that the representations and warranties referred to in paragraph (c) of Clause 26.33 (Times at which representations are made) are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

33.7                        Resignation and release of Security on disposal

 

Without prejudice to the provisions of the Intercreditor Agreement, if a Guarantor is or is proposed to be the subject of a Third Party Disposal or a Permitted Reorganisation or if there is a disposal of Charged Property (including pursuant to a Permitted Reorganisation) or that is permitted by the Intercreditor Agreement then:

 

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(a)                                 where that Guarantor created Transaction Security over any of its assets or business in favour of the Security Trustee (including the assets or business of any of its Subsidiaries that is to cease to be a member of the Group as a result of the disposal or Permitted Reorganisation), or Transaction Security in favour of the Security Trustee was created over the shares (or equivalent) of that  Guarantor (or any of its Subsidiaries that is to cease to be a member of the Group as a result of the disposal or Permitted Reorganisation), the Security Trustee shall, at the cost and request of the Company, release those assets, business or shares (or equivalent) and issue certificates of non-crystallisation in accordance with the Intercreditor Agreement;

 

(b)                                 the resignation of that Guarantor and related release of Transaction Security referred to in paragraph (a) above shall not become effective until the date of that disposal or Permitted Reorganisation, as applicable; and

 

(c)                                  if the disposal or Permitted Reorganisation of that Guarantor is not made, the Resignation Letter of that Guarantor and the related release of Transaction Security referred to in paragraph (a) above shall have no effect and the obligations of the Guarantor and the Transaction Security created or intended to be created by or over that Guarantor and its Subsidiaries shall continue in such force and effect as if that release had not been effected.

 

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SECTION 10
 THE FINANCE PARTIES

 

34.                               ROLE OF THE AGENT

 

34.1                        Appointment of the Agent

 

(a)                                 Each of the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.  The provisions of this Section 10 are solely for the benefit of the Agent and the Lenders, and no Obligor shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Finance Documents (or any other similar term) with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

 

(b)                                 Each of the Lenders authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

34.2                        Duties of the Agent

 

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

 

(b)                                 Without prejudice to Clause 31.7 (Copy of Transfer Certificate or Assignment Agreement to Company), paragraph (a) above shall not apply to any Transfer Certificate or any Assignment Agreement.

 

(c)                                  Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

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

 

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

 

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

 

(g)                                  The Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Finance Document by or through any one or more sub-agents appointed by the Agent.  The Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers

 

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by or through their respective Representatives.  The exculpatory provisions of this Section 10 shall apply to any such sub-agent and to the Representatives of the Agent and any such sub-agent, and shall apply to their respective activities in connection with the Facility provided for herein as well as activities as Agent.  The Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that the Agent acted with gross negligence or wilful misconduct in the selection of such sub-agents.

 

34.3                        No fiduciary duties

 

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

 

(b)                                 The Agent shall not be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

34.4                        Business with the Group

 

The Agent may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of banking or other business with any member of the Group.

 

34.5                        Rights and discretions

 

(a)                                 The Agent may rely on:

 

(i)                                     any representation, notice or document believed by it to be genuine, correct and appropriately authorized, and shall not be responsible for or have any duty to ascertain or inquire into (A) any statement, warranty or representation made in or in connection with this Agreement or any other Finance Document, (B) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (C) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, or (D) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Finance Document; and

 

(ii)                                  any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

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

 

(i)                                     no Default has occurred (unless it has actual knowledge of a Default arising under Clause 30.1 (Non-payment));

 

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

 

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

 

(c)                                  The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

(d)                                 The Agent may act in relation to the Finance Documents through its personnel and agents.

 

(e)                                  The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

(f)                                   Notwithstanding any other provision of any Finance Document to the contrary, the Agent is not obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

34.6                        Majority Lenders’ instructions

 

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

 

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

 

(c)                                  The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

 

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

 

(e)                                  The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This paragraph (e) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Transaction Security Documents or enforcement of the Transaction Security or Transaction Security Documents.

 

(f)                                   The Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Agent to liability or that is contrary to any Finance Document or applicable law, including for the avoidance of doubt

 

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any action that may be in violation of the automatic stay under any insolvency or similar proceedings.

 

34.7                        Responsibility for documentation

 

The Agent:

 

(a)                                 is not responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, an Obligor or any other person given in or in connection with any Finance Document or the transactions contemplated in the Finance Documents;

 

(b)                                 is not responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document or the Transaction Security; or

 

(c)                                  is not responsible for any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

34.8                        Exclusion of liability

 

(a)                                 Without limiting paragraph (b) below (and without prejudice to the provisions of paragraph (e) of Clause 37.10 (Disruption to Payment Systems etc.)), the Agent will not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for any action taken by it under or in connection with any Finance Document or the Transaction Security, unless directly caused by its gross negligence or wilful misconduct or wilful breach of any Finance Document.

 

(b)                                 No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Transaction Document and any officer, employee or agent of the Agent may rely on this paragraph subject to Clause 1.4 (Third party rights) and the provisions of the Third Parties Act.

 

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

 

(d)                                 Nothing in this Agreement shall oblige the Agent to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Agent that it is solely responsible for any

 

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such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent.

 

34.9                        Lenders’ indemnity to the Agent

 

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 37.10 (Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

34.10                 Resignation of the Agent

 

(a)                                 The Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the Lenders and the Company.

 

(b)                                 Alternatively the Agent may resign by giving notice to the Lenders and the Company, in which case the Majority Lenders (after, to the extent reasonably practicable, consultation with the Company for no more than 5 Business Days) may appoint a successor Agent.

 

(c)                                  If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the retiring Agent (after consultation with the Company) may appoint a successor Agent (acting through an office in the United Kingdom).

 

(d)                                 If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under paragraph (c) above, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 34 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with the current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent’s normal fee rates and those amendments will bind the Parties.

 

(e)                                  The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

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(f)                                   The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

(g)                                  Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 34.  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

(h)                                 After, to the extent reasonably practicable, consultation with the Company for not more than 5 Business Days, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Agent shall resign in accordance with paragraph (b) above but the cost referred to in paragraph (e) above shall be for the account of the Company.

 

34.11                 Replacement of the Agent

 

(a)                                 After consultation with the Company, the Majority Lenders may, by giving 30 days’ notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders), replace the Agent by appointing a successor Agent (acting through an office in the United Kingdom).

 

(b)                                 The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(c)                                  The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 34 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

 

(d)                                 Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

34.12                 Confidentiality

 

(a)                                 In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

(b)                                 If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

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(c)                                  Notwithstanding any other provision of any Finance Document to the contrary, the Agent is not obliged to disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

 

34.13                 Relationship with the Lenders

 

(a)                                 Subject to Clause 31.9 (Pro rata interest settlement), the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

(i)                                     entitled to or liable for any payment due under any Finance Document on that day; and

 

(ii)                                  entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

(b)                                 Each Lender shall supply the Agent with any information that the Security Trustee may reasonably specify (through the Agent) as being necessary or desirable to enable the Security Trustee to perform its functions as Security Trustee.  Each Lender shall deal with the Security Trustee exclusively through the Agent and shall not deal directly with the Security Trustee.

 

(c)                                  Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 39.5 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 39.2 (Addresses) and paragraph (a)(iii) of Clause 39.5 (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

34.14                 Credit appraisal by the Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent that it has been, and will continue to be, solely responsible for making its own

 

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independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

(a)                                 the financial condition, status and nature of each member of the Group;

 

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

 

(c)                                  whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Transaction Security or the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(d)                                 the adequacy, accuracy and/or completeness of any information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(e)                                  the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Transaction Security or the existence of any Security affecting the Charged Property.

 

34.15                 Agent’s management time

 

Any amount payable to the Agent under Clause 22.3 (Indemnity to the Agent), Clause 24 (Costs and expenses) and Clause 34.9 (Lenders’ indemnity to the Agent) shall include the cost of utilising the Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 19 (Fees).

 

34.16                 Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

34.17                 Reliance and engagement letters

 

Each Finance Party confirms that the Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Agent) any reports or letters provided by accountants in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it

 

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in respect of those reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.

 

34.18                 Register

 

(a)                                 The Agent, on behalf of each Borrower, shall maintain a register (the “Register”) for the registration and transfer of the Loans, and shall enter the names and addresses of the registered holders of the Loans, the transfers, of the Loan and the names and addresses of the transferees (including all assignees, successors and participants) of the Loans.

 

(b)                                 Each Borrower shall be provided reasonable opportunities to inspect the Register from time to time.

 

(c)                                  Each Borrower shall treat any registered holder as the absolute owner of any Loans held by such holder, as indicated in the Register (absent manifest error), for the purpose of receiving payment of all amounts payable with respect to such Loans and for all other purposes.

 

(d)                                 The Loans are registered obligations and the right, title and interest of any Lender and its assignees in and to such Loans, shall be transferable only upon notation of such transfer in the Register.

 

(e)                                  Solely for the purposes of this Clause 34.18 the Agent shall be the Borrowers’ agent for purposes of maintaining the Register.

 

34.19                 Role of Base Reference Banks and Alternative Reference Banks

 

(a)                                 No Base Reference Bank or Alternative Reference Bank is under any obligation to provide a quotation or any other information to the Agent.

 

(b)                                 No Base Reference Bank or Alternative Reference Bank will be liable for any action taken by it under or in connection with any Finance Document, or for any Reference Bank Quotation, unless directly caused by its gross negligence or wilful misconduct.

 

(c)                                  No Party (other than the relevant Base Reference Bank or Alternative Reference Bank) may take any proceedings against any officer, employee or agent of any Base Reference Bank or Alternative Reference Bank in respect of any claim it might have against that Base Reference Bank or Alternative Reference Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or agent of each Base Reference Bank or Alternative Reference Bank may rely on this Clause 34.19 subject to Clause 1.5 (Third party rights) and the provisions of the Third Parties Act.

 

34.20                 Third party Base Reference Banks and Alternative Reference Banks

 

A Base Reference Bank or Alternative Reference Bank which is not a Party may rely on Clause 34.19 (Role of Base Reference Banks and Alternative Reference Banks) and

 

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Clause 45 (Confidentiality of Funding Rates and Reference Bank Quotations) subject to Clause 1.5 (Third party rights) and the provisions of the Third Parties Act.

 

35.                               CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

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

 

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

 

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

 

36.                               SHARING AMONG THE FINANCE PARTIES

 

36.1                        Payments to Finance Parties

 

Subject to paragraph (b) below, if a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 37 (Payment mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:

 

(a)                                 the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

 

(b)                                 the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 37 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                  the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 37.5 (Partial payments).

 

36.2                        Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 37.5 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

 

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36.3                        Recovering Finance Party’s rights

 

On a distribution by the Agent under Clause 36.2 (Redistribution of payments), of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

 

36.4                        Reversal of redistribution

 

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

 

(a)                                 each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

(b)                                 as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

 

36.5                        Exceptions

 

(a)                                 This Clause 36 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)                                 A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                                     it notified the other Finance Party of the legal or arbitration proceedings; and

 

(ii)                                  the other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

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SECTION 11
 ADMINISTRATION

 

37.                               PAYMENT MECHANICS

 

37.1                        Payments to the Agent

 

(a)                                 On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

(b)                                 Payment shall be made to such account in the principal financial centre of the country of that currency pursuant to the wiring instructions listed in Schedule 4 or such substitute wiring instructions as the Agent may notify the relevant Obligor by not less than 5 Business Days’ notice.

 

37.2                        Distributions by the Agent

 

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 37.3 (Distributions to an Obligor) and Clause 37.4 (Clawback) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency.

 

37.3                        Distributions to an Obligor

 

The Agent may (with the consent of the Obligor or in accordance with Clause 38 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

37.4                        Clawback

 

(a)                                 Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

(b)                                 If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

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37.5                        Impaired Agent

 

(a)                                 If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 37.1 (Payments to the Agent) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank within the meaning of paragraph (a) of the definition of “Acceptable Bank” and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents.  In each case such payments must be made on the due date for payment under the Finance Documents.

 

(b)                                 All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements.

 

(c)                                  A Party which has made a payment in accordance with this Clause 37.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

(d)                                 Promptly upon the appointment of a successor Agent in accordance with Clause 34.11 (Replacement of the Agent), each Party which has made a payment to a trust account in accordance with this Clause 37.5 shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution in accordance with Clause 37.2 (Distributions by the Agent).

 

37.6                        Partial payments

 

(a)                                 If the Agent receives a payment for application against amounts due in respect of any Finance Documents that is insufficient to discharge all the amounts then due and payable by an Obligor under those Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under those Finance Documents in the following order:

 

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

 

(ii)                                  secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents;

 

(iii)                               thirdly, in or towards payment pro rata of any principal due but unpaid under those Finance Documents; and

 

(iv)                              fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

 

(b)                                 The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

 

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(c)                                  Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

 

37.7                        Set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of, and without condition or any deduction for) set-off, counterclaim, defense or recoupment.

 

37.8                        Business Days

 

(a)                                 Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

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

 

37.9                        Currency of account

 

(a)                                 Subject to paragraphs (b) to (e) below, the applicable Base Currency is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

(b)                                 A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.

 

(c)                                  Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

 

(d)                                 Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

(e)                                  Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency.

 

37.10                 Change of currency

 

(a)                                 Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

(i)                                     any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Company); and

 

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(ii)                                  any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

 

(b)                                 If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Company) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

37.11                 Disruption to Payment Systems etc.

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Company that a Disruption Event has occurred:

 

(a)                                 the Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

(b)                                 the Agent shall not be obliged to consult with the Company in relation to any changes mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

(c)                                  the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

(d)                                 any such changes agreed upon by the Agent and the Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 43 (Amendments and Waivers);

 

(e)                                  the Agent shall not be liable for any damages, costs or losses whatsoever  (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 37.11; and

 

(f)                                   the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

 

38.                               SET-OFF

 

Whilst an Event of Default is continuing, a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the

 

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Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

 

39.                               NOTICES

 

39.1                        Communications in writing

 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by electronic mail, fax or letter.

 

39.2                        Addresses

 

The address, email address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

 

(a)                                 in the case of the Company, a Borrower or any Guarantor, that identified with its name below;

 

(b)                                 in the case of each Lender or any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

(c)                                  in the case of the Agent, that identified with its name below,

 

or any substitute address, email address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days’ notice.

 

39.3                        Delivery

 

(a)                                 Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

 

(i)                                     if by way of fax, when received in legible form; or

 

(ii)                                  if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

 

and, if a particular department or officer is specified as part of its address details provided under Clause 39.2 (Addresses), if addressed to that department or officer.

 

(b)                                 Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s signature below (or any substitute department or officer as the Agent shall specify for this purpose).

 

(c)                                  All notices from or to an Obligor shall be sent through the Agent.

 

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(d)                                 Any communication or document made or delivered to the Company in accordance with this Clause 39.3 will be deemed to have been made or delivered to each of the Obligors.

 

39.4                        Notification of address and fax number

 

Promptly upon receipt of notification of an address, email address or fax number or change of address, email address or fax number pursuant to Clause 39.2 (Addresses) or changing its own address, email address or fax number, the Agent shall notify the other Parties.

 

39.5                        Electronic communication

 

(a)                                 Any communication to be made between the Agent and a Lender or Obligor under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent and the relevant Lender or Obligor:

 

(i)                                     agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

(ii)                                  notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

 

(iii)                               notify each other of any change to their address or any other such information supplied by them.

 

(b)                                 Any electronic communication made between the Agent and a Lender or an Obligor will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender or an Obligor to the Agent and/or any member of the Restricted Group only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

39.6                        Communication when Agent is Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Agent has been appointed.

 

39.7                        Use of websites

 

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

 

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

 

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

 

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

 

If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically then the Agent shall notify the Company accordingly and the Company shall, at its own cost, supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form.  In any event the Company shall, at its own cost, supply the Agent with at least one copy in paper form of any information required to be provided by it.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)                                 Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website.  The Company shall at its own cost comply with any such request within 10 Business Days.

 

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39.8                        English language

 

(a)                                 Any notice given under or in connection with any Finance Document must be in English.

 

(b)                                 All other documents provided under or in connection with any Finance Document must be:

 

(i)                                     in English; or

 

(ii)                                  if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

40.                               CALCULATIONS AND CERTIFICATES

 

40.1                        Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

40.2                        Certificates and determinations

 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

40.3                        Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

40.4                        Personal Liability

 

If an individual signs a certificate on behalf of any member of the Group and the certificates proves to be incorrect, the individual will incur no personal liability as a result, unless the individual acted fraudulently or recklessly in giving the certificate.  In this case any liability of the individual will be determined in accordance with applicable law.

 

41.                               PARTIAL INVALIDITY

 

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

 

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42.                               REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under the Finance Documents shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

43.                               AMENDMENTS AND WAIVERS

 

43.1                        Intercreditor Agreement

 

This Clause 43 is subject to the terms of the Intercreditor Agreement.

 

43.2                        Required consents

 

(a)                                 Subject to Clause 43.3 (Exceptions) any term of the Finance Documents (other than the Mandate Letter) may be amended or waived only with the consent of the Majority Lenders and the Company and any such amendment or waiver will be binding on all Parties.

 

(b)                                 The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 43.

 

(c)                                  Each Obligor agrees to any such amendment or waiver permitted by this Clause 43 which is agreed to by the Company.  This includes any amendment or waiver which would, but for this paragraph (c), require the consent of all of the Guarantors.

 

43.3                        Exceptions

 

(a)                                 An amendment or waiver that has the effect of changing or which relates to:

 

(i)                                     the definitions of “Majority Lenders” and “Super Majority Lenders” in Clause 1.1 (Definitions);

 

(ii)                                  an extension to the date of scheduled payment of any amount under the Finance Documents;

 

(iii)                               an extension of the Availability Period;

 

(iv)                              a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable (other than as a result of the application of the Margin ratchet);

 

(v)                                 a change in currency of payment of any amount under the Finance Documents;

 

(vi)                              an increase in or an extension of any Commitment or Total Commitments;

 

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(vii)                           a change to the Borrowers or Guarantors other than in accordance with Clause 33 (Changes to the Obligors);

 

(viii)                        any provision which expressly requires the consent of all the Lenders;

 

(ix)                              Clause 2.2 (Finance Parties’ rights and obligations), Clause 29.13 (Amendments), Clause 31 (Changes to the Lenders), Clause 36 (Sharing among the Finance Parties) or this Clause 43; or

 

(x)                                 subject to the terms of the Intercreditor Agreement, any amendment to the order of priority or subordination under the Intercreditor Agreement or the manner in which the proceeds of enforcement of the Transaction Security are distributed;

 

shall not be made without the prior consent of all the Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of the Agent or, a Base Reference Bank or an Alternative Reference Bank (each in their capacity as such) may not be effected without the consent of the Agent, Base Reference Bank (to the extent there is any) or Alternative Reference Bank (to the extent there is any), as the case may be.

 

(c)                                  Any amendment or waiver that has the effect of changing or that relates to:

 

(i)                                     subject to the terms of the Intercreditor Agreement, the nature or scope of the Charged Property (except insofar as it relates to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document);

 

(ii)                                  the nature or scope of or release of any guarantee and indemnity granted under Clause 25 (Guarantee and indemnity) or, subject to the terms of the Intercreditor Agreement, of any Transaction Security unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document; or

 

(iii)                               any provision which expressly requires the consent of the Super Majority Lenders (save for this Clause 43);

 

may only be made with the consent of the Super Majority Lenders.

 

(d)                                 Any amendment or waiver that has the effect of changing or that relates to a change to Clause 14 (Mandatory prepayments) (including, subject to compliance by the Lenders and the Agent with any “know your client” or other requirements, the definition of “Change of Control”) may only be made with the consent of a Lender or Lenders whose Commitments aggregate more than 80 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 80 per cent. of the Total Commitments immediately prior to that reduction).

 

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(e)                                  If a Lender does not accept or reject a request for consent within 15 Business Days (unless the Company and the Agent agree to a longer time period in relation to any request) of that request being made and Lenders whose Commitments aggregate more than 50 per cent. of the Total Commitments have given their consent, its Commitment shall not be included for the purpose of calculating the Total Commitments or participations under the Facility when ascertaining whether the requisite level of Total Commitments has been obtained to approve that request.

 

43.4                        Replacement of Screen Rate

 

Subject to Clause 43.3(b) (Exceptions), if the Screen Rate is not available for a currency which can be selected for a Loan, any amendment or waiver which relates to providing for another benchmark rate to apply in relation to that currency in place of that Screen Rate (or which relates to aligning any provision of a Finance Document to the use of that other benchmark rate) may be made with the consent of the Majority Lenders and the Company.

 

43.5                        Replacement or repayment of Lender

 

(a)                                 If at any time while there are at least two Lenders:

 

(i)                                     any Lender becomes a Non-Consenting Lender (as defined in paragraph (c) below);

 

(ii)                                  an Obligor becomes obliged to repay any amount in accordance with Clause 13.1 (Illegality) or to pay additional amounts pursuant to Clause 21.1 (Increased Costs) or Clause 20.2 (Tax gross-up) to any Lender in excess of amounts payable to the other Lenders generally; or

 

(iii)                               any Lender that invokes Clause 18.3 (Market Disruption),

 

then the Company may, on 10 Business Days’ prior written notice to the Agent and such Lender, prepay or replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 31 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by the Company which confirms its willingness to assume and does assume all the obligations of the transferring Lender (including the assumption of the transferring Lender’s participations on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer in an amount equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 The replacement or prepayment of a Lender pursuant to this Clause shall be subject to the following conditions:

 

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(i)                                     the Company shall have no right to replace the Agent or Security Trustee;

 

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

 

(iii)                               in the event of a replacement or prepayment of a Non-Consenting Lender such replacement must take place no later than 20 Business Days after the date the Non-Consenting Lender notifies the Company and the Agent of its failure or refusal to give a consent in relation to, or agree to any waiver or amendment to the Finance Documents requested by the Company;

 

(iv)                              in the event of a replacement of a Non-Consenting Lender immediately following the transfer of a transferring Lender’s participations to the Replacement Lender, unanimous consent to the request for consent, waiver or amendment will be obtained; and

 

(v)                                 in no event shall the Lender replaced under this paragraph (b) be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

(c)                                  In the event that:

 

(i)                                     the Company or the Agent (at the request of the Company) has requested the Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any provisions of the Finance Documents;

 

(ii)                                  the consent, waiver or amendment in question requires the approval of all the Lenders; and

 

(iii)                               Lenders whose Commitments aggregate more than 85 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 85 per cent. of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment,

 

then any Lender who does not and continues not to consent or agree to such waiver or amendment shall be deemed a “Non-Consenting Lender” on the date falling 10 Business Days after the date on which such consent, waiver or amendment was requested.

 

44.                               CONFIDENTIALITY

 

44.1                        Confidential Information

 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 44.2 (Disclosure of Confidential Information) and Clause 44.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

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44.2                        Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

(a)                                 to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

(b)                                 to any person:

 

(i)                                     to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(ii)                                  with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(iii)                               appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (c) of Clause 34.13 (Relationship with the Lenders));

 

(iv)                              who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

 

(v)                                 to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)                              to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 31.8 (Security over Lenders’ rights);

 

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(vii)                           to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(viii)                        who is a Party; or

 

(ix)                              with the consent of the Company;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)                               in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(B)                               in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

 

(C)                               in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party (acting reasonably), it is not practicable so to do in the circumstances;

 

(c)                                  to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii)above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party;

 

(d)                                 to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents

 

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and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information; and

 

(e)                                  the size and term of the Facility and the name of each of the Obligors to any investor or a potential investor in a securitisation (or similar transaction of broadly equivalent economic effect) of that Lender’s rights or obligations under the Finance Documents.

 

44.3                        Disclosure to numbering service providers

 

(a)                                 Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

 

(i)                                     names of Obligors;

 

(ii)                                  country of domicile of Obligors;

 

(iii)                               place of incorporation of Obligors;

 

(iv)                              date of this Agreement;

 

(v)                                 the names of the Agent;

 

(vi)                              date of each amendment and restatement of this Agreement;

 

(vii)                           amount of Total Commitments;

 

(viii)                        currencies of the Facility;

 

(ix)                              type of Facility;

 

(x)                                 ranking of Facility;

 

(xi)                              Termination Date for Facility;

 

(xii)                           changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and

 

(xiii)                        such other information agreed between such Finance Party and the Company,

 

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

 

(b)                                 The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

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(c)                                  Each Obligor represents that none of the information set out in paragraphs (i) to (xiii) of paragraph (a) above is, nor will at any time be, unpublished price sensitive information.

 

(d)                                 The Agent shall notify the Company and the other Finance Parties of:

 

(i)                                     the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facility and/or one or more Obligors; and

 

(ii)                                  the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider.

 

44.4                        Entire agreement

 

This Clause 44 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

44.5                        Inside information

 

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

44.6                        Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Company:

 

(a)                                 of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 44.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(b)                                 upon becoming aware that Confidential Information has been disclosed in breach of this Clause 44 (Confidentiality).

 

44.7                        Continuing obligations

 

The obligations in this Clause 44 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve months from the earlier of:

 

(a)                                 the date on which all amounts payable by the Obligors under or in connection with the Finance Documents have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

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(b)                                 the date on which such Finance Party otherwise ceases to be a Finance Party.

 

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45.                               CONFIDENTIALITY OF FUNDING RATES AND REFERENCE BANK QUOTATIONS

 

45.1                        Confidentiality and Disclosure

 

(a)                                 The Agent and each Obligor agree to keep each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b), (c) and (d) below.

 

(b)                                 The Agent may disclose:

 

(i)                                     any Funding Rate (but not, for the avoidance of doubt, any Reference Bank Quotation) to a Borrower (or the Company) pursuant to Clause 16.4 (Notification of rates of interest); and

 

(ii)                                  any Funding Rate or any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Agent and the relevant Lender or Base Reference Bank or Alternative Reference Bank, as the case may be.

 

(c)                                  The Agent may disclose any Funding Rate or any Reference Bank Quotation, and each Obligor may disclose any Funding Rate, to:

 

(i)                                     any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate or Reference Bank Quotation is to be given pursuant to this subparagraph (i) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;

 

(ii)                                  any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

 

138

 

(iii)                               any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and

 

(iv)                              any person with the consent of the relevant Lender or Base Reference Bank or Alternative Reference Bank, as the case may be.

 

(d)                                 The Agent’s obligations in this Clause 45.1 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under Clause 16.4 (Notification of rates of interest) provided that (other than pursuant to paragraph (b)(i) above) the Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification.

 

45.2                        Related Obligations

 

(a)                                 The Agent and each Obligor acknowledge that each Funding Rate (and, in the case of the Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Agent and each Obligor undertake not to use any Funding Rate or, in the case of the Agent, any Reference Bank Quotation for any unlawful purpose.

 

(b)                                 The Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Base Reference Bank or Alternative Reference Bank, as the case may be:

 

(i)                                     of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 45.1 (Confidentiality and Disclosure) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(ii)                                  upon becoming aware that any information has been disclosed in breach of this Clause 45.2.

 

45.3                        No Event of Default

 

No Event of Default will occur under Clause 30.3 (Other obligations) by reason only of a member of the Group’ failure to comply with this Clause 45.

 

46.                               COUNTERPARTS

 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

 

139

 

SECTION 12
 GOVERNING LAW AND ENFORCEMENT

 

47.                               GOVERNING LAW

 

(a)                                 Subject to paragraph (b) below, this Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

(b)                                 Schedule 17 (Restrictive Covenants) of this Agreement and any non-contractual obligations arising out of or in connection with it are governed by the laws of the State of New York.

 

48.                               ENFORCEMENT

 

48.1                        Jurisdiction of English courts

 

(a)                                 The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or the consequences of its nullity) or any non-contractual obligations arising out of or in connection with this Agreement (a “Dispute”).

 

(b)                                 The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

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

 

140

 

SCHEDULE 1
 THE ORIGINAL PARTIES

 

PART 1
 THE ORIGINAL OBLIGORS

 

	
Name of Borrower
    	
 
    	
Place of Incorporation
    	
 
    	
Registration Number
   (or equivalent, if any)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
MU Finance plc
    	
 
    	
England & Wales
    	
 
    	
07088267
    

 

	
Name of Original Guarantor
    	
 
    	
Place of Incorporation
    	
 
    	
Registration Number
   (or equivalent, if any)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Red Football Limited
    	
 
    	
England & Wales
    	
 
    	
5370076
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Manchester United Limited
    	
 
    	
England & Wales
    	
 
    	
2570509
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Red Football Junior Limited
    	
 
    	
England & Wales
    	
 
    	
5370078
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Manchester United Football Club Limited
    	
 
    	
England & Wales
    	
 
    	
00095489
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
MU Finance plc
    	
 
    	
England & Wales
    	
 
    	
07088267
    

 

 

PART II
 THE LENDERS

 

	
Name of Lender
    	
 
    	
Total Facility
    Commitment as of the
   Third Amendment
    Effective Date ($)
    	
 
    
	
Bank of America Merrill Lynch   International Limited
    	
 
    	
$
    	
225,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
$
    	
225,000,000
    	
 
    

 

 

SCHEDULE 2
 CONDITIONS PRECEDENT

 

PART I
 CONDITIONS PRECEDENT TO INITIAL UTILISATION

 

1.                                      Obligors

 

(a)                                 A copy of the Constitutional Documents and of the constitutional documents of each Original Obligor.

 

(b)                                 A copy of a resolution of the board of directors (or, if applicable, a committee of the board) of each Original Obligor:

 

(i)                                     approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party;

 

(ii)                                  authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

 

(iii)                               authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

 

(iv)                              in the case of an Obligor other than the Company, authorising the Company to act as its agent in connection with the Finance Documents.

 

(c)                                  If applicable, a copy of a resolution of the board of directors of the Original Obligor, establishing the committee referred to in paragraph (b) above.

 

(d)                                 A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above in relation to the Finance Documents and related documents.

 

(e)                                  A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party.

 

(f)                                   A copy of a resolution of the board of directors of each corporate shareholder of each Original Guarantor approving the terms of the resolution referred to in paragraph (e) above.

 

(g)                                  A certificate of an authorised signatory of the Company confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on any Original Obligor to be exceeded.

 

(h)                                 A certificate of an authorised signatory of the Company and each Original Obligor certifying that each copy document relating to it specified in this Part

 

 

I of Schedule 2 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement.

 

2.                                      Transaction Documents

 

(a)                                 A certified copy of the Existing RCF Facilities Agreement as in effect on the Closing Date.

 

(b)                                 A certified copy of the Existing Note Indenture as in effect on the Closing Date.

 

(c)                                  A certified copy of the Senior Note Guarantee as in effect on the Closing Date.

 

(d)                                 A certified copy of each Transaction Security Document as in effect on the Closing Date.

 

(e)                                  A certified copy of the Intercreditor Agreement executed by the members of the Group party to that Agreement as in effect on the Closing Date.

 

(f)                                   A certified copy of each Specified Contract as in effect on the Closing Date.

 

3.                                      Finance Documents

 

(a)                                 This Agreement executed by the members of the Group party to this Agreement.

 

(b)                                 The Fee Letter executed by the Company.

 

(c)                                  The Creditor Intercreditor Accession Undertaking duly executed by all parties or such other document required to enable the Lenders to become party to the Intercreditor Agreement as a Pari Passu Creditor.

 

4.                                      Legal opinions

 

The following legal opinions, each addressed to the Agent and the Original Lender:

 

(a)                                 a legal opinion of McGuireWoods London LLP, legal advisers to the Agent and the Original Lender as to English law substantially in the form distributed to the Original Lender prior to signing this Agreement; and

 

(b)                                 a legal opinion of McGuireWoods LLP as to New York law substantially in the form distributed to the Original Lender prior to signing this Agreement.

 

5.                                      Other documents and evidence

 

(a)                                 The Funds Flow Statement.

 

(b)                                 The Group Structure Chart.

 

(c)                                  The Champions League Adjustment Spreadsheet.

 

(d)                                 The Base Case Model.

 

 

(e)                                  A copy of the Original Financial Statements (if any) of each Obligor.

 

(f)                                   A Certificate of an authorised signatory of the Company addressed to the Finance Parties confirming which companies within the Restricted Group are Material Companies and that (i) the aggregate of earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA), the aggregate gross assets and the aggregate turnover of the Original Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-Restricted Group items) exceeds 90 per cent. of the Consolidated EBITDA, the consolidated gross assets and consolidated turnover of all the members of the Restricted Group (ii) or that the conditions set out in paragraph (c) of Clause 29.14 (Guarantors) are met.

 

(g)                                  “know your customer” information in respect of the Original Obligors.

 

(h)                                 Evidence that the fees, costs and expenses then due from the Company pursuant to Clause 19 (Fees), and Clause 24 (Costs and expenses) have been paid or will be paid by the Closing Date.

 

(i)                                     A copy of each document required for the redemption of the Redemption Notes, including without limitation the Officers’ Certificate (as defined in the Existing Note Indenture) and the notice of redemption.

 

(j)                                    A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Company accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

 

 

PART II
 CONDITIONS PRECEDENT REQUIRED TO BE
 DELIVERED BY AN ADDITIONAL OBLIGOR

 

1.                                      An Accession Deed executed by the Additional Obligor and the Company.

 

2.                                      A copy of the constitutional documents of the Additional Obligor.

 

3.                                      A copy of a resolution of the board or, if applicable, a committee of the board of directors of the Additional Obligor:

 

(a)                                 approving the terms of, and the transactions contemplated by, the Accession Deed and the Finance Documents and resolving that it execute, deliver and perform the Accession Deed and any other Finance Document to which it is a party;

 

(b)                                 authorising a specified person or persons to execute the Accession Deed and other Finance Documents on its behalf;

 

(c)                                  authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to an Additional Borrower, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

 

(d)                                 authorising the Company to act as its agent in connection with the Finance Documents.

 

4.                                      If applicable, a copy of a resolution of the board of directors of the Additional Obligor, establishing the committee referred to in paragraph 3 above.

 

5.                                      A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

 

6.                                      A copy of a resolution signed by all the holders of the issued shares of the Additional Obligor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Obligor is a party.

 

7.                                      A copy of a resolution of the board of directors of each corporate shareholder of each Additional Obligor approving the terms of the resolution referred to in paragraph 6 above.

 

8.                                      A certificate of an Authorised Signatory of the Additional Obligor confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on it to be exceeded.

 

9.                                      A certificate of an authorised signatory of the Additional Obligor certifying that each copy document listed in this Part II of Schedule 2 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of the Accession Deed.

 

 

10.                               A copy of any other authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document.

 

11.                               If available, the latest audited financial statements of the Additional Obligor.

 

12.                               The following legal opinions, each addressed to the Agent, the Security Trustee and the Lenders:

 

(a)                                 A legal opinion of the legal advisers to the Agent in England, as to English law in the form distributed to the Lenders prior to signing the Accession Deed.

 

(b)                                 If the Additional Obligor is incorporated in or has its “centre of main interest” or “establishment” (as referred to in Clause 26.29 (Centre of main interests and establishments)) in a jurisdiction other than England and Wales or is executing a Finance Document which is governed by a law other than English law, a legal opinion of the legal advisers to the Agent in the jurisdiction of its incorporation, “centre of main interest” or “establishment” (as applicable) or, as the case may be, the jurisdiction of the governing law of that Finance Document (the “Applicable Jurisdiction”) as to the law of the Applicable Jurisdiction and in the form distributed to the Lenders prior to signing the Accession Deed.

 

13.                               Any security documents which are required by the Agent to be executed by the proposed Additional Obligor.

 

14.                               Any notices or documents required to be given or executed under the terms of those security documents.

 

15.                               If the Additional Obligor is incorporated in England and Wales, Scotland or Northern Ireland evidence that the Additional Obligor has done all that is necessary (including, without limitation, by re-registering as a private company) to comply with sections 677 to 683 of the Companies Act 2006 in order to enable that Additional Obligor to enter into the Finance Documents and perform its obligations under the Finance Documents.

 

 

SCHEDULE 3
 REQUESTS

 

PART I
 UTILISATION REQUEST

 

From:                                                               [Borrower] [Company]*

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent

Adi Khambata/Kevin Gubb

Loan Services

26 Elmfield Road

Bromley, BR1 1QA

United Kingdom

44 208 695 3389 (telephone)

44 208 313 2149 (fax)

Adi.khambata@baml.com

Kevin.d.gubb@baml.com

emealoanoperations@baml.com

 

Dated:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Agreement”)

 

Dear Sirs:

 

1.                                      We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

2.                                      We wish to borrow a Loan on the following terms:

 

	
(a)       Borrower:
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    
	
(b)       Proposed   Utilisation Date:
    	
 
    	
[·] (or, if that is not a Business Day, the next Business Day)
    
	
 
    	
 
    	
 
    
	
(c)       Currency of Loan:
    	
 
    	
U.S. Dollars
    
	
 
    	
 
    	
 
    
	
(d)       Amount:
    	
 
    	
$[·](1)
    
	
 
    	
 
    	
 
    
	
(e)       Interest Period:
    	
 
    	
[·]
    

 

3.                                      We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

4.                                      [The proceeds of this Loan should be credited to [account]].

 

(1)  Aggregate amount drawn by the Borrower must be equal to the Available Facility.

 

148

 

5.                                      This Utilisation Request is irrevocable.

 

	
 
    	
Yours faithfully
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
authorised signatory for
    	
 
    

[the Company on behalf of] [insert name of Borrower]*

 

NOTES:

 

*                               Amend as appropriate.  The Utilisation Request can be given by a Borrower or by the Company.

 

149

 

PART II 
 SELECTION NOTICE

 

From:                                                               [Borrower] [Company]*

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent

Adi Khambata/Kevin Gubb

Loan Services

26 Elmfield Road

Bromley, BR1 1QA

United Kingdom

44 208 695 3389 (telephone)

44 208 313 2149 (fax)

Adi.khambata@baml.com

Kevin.d.gubb@baml.com

emealoanoperations@baml.com

 

Dated:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Agreement”)

 

Dear Sirs:

 

1.                                      We refer to the Agreement.  This is a Section Notice.  Terms defined in the Agreement have the same meaning in the Selection Notice unless given a different meaning in this Selection Notice.

 

2.                                      We refer to the following Loan in [identify currency] with an Interest Period ending on [       ].

 

3.                                      We request that the next Interest Period for the above Loan is [       ].

 

4.                                      We request that the above Loan is denominated in the same currency for the next Interest Period.

 

5.                                      This Selection Notice is irrevocable.

 

	
 
    	
Yours faithfully
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
authorised signatory for
    	
 
    

[the Company on behalf of] [name of Borrower]

 

150

 

SCHEDULE 4
 WIRING INFORMATION

 

Bank Payment Instructions

 

USD

 

Bank Name:

Address:

SWFIT:

Acct Name:

SWIFT:

Favour of:

Acct No:

IBAN:

Attn:

 

151

 

SCHEDULE 5
 FORM OF TRANSFER CERTIFICATE

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent and [·] as Security Trustee

 

From:                                                               [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

 

Dated:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Facility Agreement”)

 

1.                                      We refer to the Facility Agreement and to the Intercreditor Agreement (as defined in the Facility Agreement).  This agreement (as amended, the “Agreement”) shall take effect as a Transfer Certificate for the purpose of the Facility Agreement and as a Creditor/Creditor Representative Accession Undertaking for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement).  Terms defined in the Facility Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                      We refer to Clause 31.5 (Procedure for transfer) of the Facility Agreement:

 

(a)                                 The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 31.5 (Procedure for transfer) of the Facility Agreement.

 

(b)                                 The proposed Transfer Date is [·].

 

(c)                                  The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 39.2 (Addresses) of the Facility Agreement are set out in the Schedule.

 

3.                                      The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 31.4 (Limitation of responsibility of Existing Lenders) of the Facility Agreement.

 

4.                                      The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender other than a UK Treaty Lender;]

 

(b)                                 [a UK Treaty Lender;]

 

152

 

(c)                                  [not a Qualifying Lender];*

 

and that it is also

 

(d)                                 a U.S. Qualifying Lender.

 

5.                                      [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

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

 

(b)                                 a partnership each member of which is:

 

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

 

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

 

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

 

[5./6.]                [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [  ]) and is tax resident in [    ] (2), so that interest payable to it by each Borrower is generally subject to full exemption from UK withholding tax, and requests that the Company notify each Borrower that it wishes that scheme to apply to the Agreement.](3)

 

[6./7.]                [We refer to Clause [19.5] (Change of RCF Lender) of the Intercreditor Agreement.

 

In consideration of the New Lender being accepted as a [Pari Passu] Creditor for the purposes of the Intercreditor Agreement (and as defined therein), the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Agreement as a [Pari Passu] Creditor, and undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by a [Pari Passu] Creditor and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement.]

 

*                      Delete as applicable - each New Lender is required to confirm which of these three categories it falls within, and also that it is a US Qualifying Lender.

 

(2)  Insert jurisdiction of tax residence.

 

(3)  Include if New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.

 

153

 

[7./8.]                This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[8./9.]                This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

[9./10.]         This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note:                 The execution of this Transfer Certificate may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

154

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility Office address, fax number and attention details for notices and account details for payments]

 

	
[Existing Lender]
    	
[New Lender]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

This Agreement is accepted as a Transfer Certificate for the purposes of the Facility Agreement by the Agent, and as a Creditor/Creditor Representative Accession Undertaking for the purposes of the Intercreditor Agreement by the Security Trustee, and the Transfer Date is confirmed as [·].

 

Bank of America Merrill Lynch International Limited, as Agent

 

By:

 

 

[Security Trustee]

 

By:

 

155

 

SCHEDULE 6
 FORM OF ASSIGNMENT AGREEMENT

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent, [·] as Security Trustee and Red Football Limited as Company for and on behalf of each Obligor

 

From:                                                               [the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”)

 

Dated:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Facility Agreement”)

 

1.                                      We refer to the Facility Agreement and to the Intercreditor Agreement (as defined in the Facility Agreement). This is an Assignment Agreement. This agreement (as amended, the “Agreement”) shall take effect as an Assignment Agreement for the purpose of the Facility Agreement and as a Creditor/Creditor Representative Accession Undertaking for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement).  Terms defined in the Facility Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                      We refer to Clause 31.6 (Procedure for assignment) of the Facility Agreement:

 

(a)                                 The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Facility Agreement, the other Finance Documents and in respect of the Transaction Security which correspond to that portion of the Existing Lender’s Commitments and participations in Utilisations under the Facility Agreement as specified in the Schedule.

 

(b)                                 The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and participations in Utilisations under the Facility Agreement specified in the Schedule.

 

(c)                                  The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

 

3.                                      The proposed Transfer Date is [·].

 

4.                                      On the Transfer Date the New Lender becomes:

 

(a)                                 party to the relevant Finance Documents (other than the Intercreditor Agreement) as a Lender; and

 

(b)                                 party to the Intercreditor Agreement as a [Pari Passu] Creditor.

 

156

 

5.                                      The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 39.2 (Addresses) of the Facility Agreement are set out in the Schedule.

 

6.                                      The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 31.4 (Limitation of responsibility of Existing Lenders) of the Facility Agreement.

 

7.                                      The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [a Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii)] of the definition of Qualifying Lender;]

 

(b)                                 [a UK Treaty Lender;]

 

(c)                                  [not a Qualifying Lender];

 

and that it is also

 

(d)                                 a U.S. Qualifying Lender.

 

8.                                      [The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

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

 

(b)                                 a partnership each member of which is:

 

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

 

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

 

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

 

[8./9.]             [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [  ]) and is tax resident in [    ](4), so that interest payable to it by each Borrower is generally subject to full exemption from UK withholding tax, and requests that the Company notify each Borrower that it wishes that scheme to apply to the Agreement.]

 

(4)  Insert jurisdiction of tax residence.

 

157

 

[9./10.]               [We refer to Clause [19.5] (Change of RCF Lender) of the Intercreditor Agreement.

 

In consideration of the New Lender being accepted as a [Pari Passu] Creditor for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement), the New Lender confirms that, as from the Transfer Date, it intends to be party to the Intercreditor Agreement as a [Pari Passu] Creditor, and undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by a [Pari Passu] Creditor and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement.]

 

[10./11.]           This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 31.7 (Copy of Transfer Certificate or Assignment Agreement to Company), to the Company (on behalf of each Obligor) of the assignment referred to in this Agreement.

 

[11./12.]           This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

[12./13.]           This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

[13./14.]           This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note:                 The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

 

158

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred by assignment,
 release and accession

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

	
[Existing Lender]
    	
[New Lender]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

This Agreement is accepted as an Assignment Agreement for the purposes of the Facility Agreement by the Agent, and as a Creditor/Creditor Representative Accession Undertaking for the purposes of the Intercreditor Agreement by the Security Trustee, and the Transfer Date is confirmed as [·].

 

Signature of this Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this Agreement, which notice the Agent receives on behalf of each Finance Party.

 

Bank of America Merrill Lynch International Limited, as Agent

 

By:

 

 

[Security Trustee]

 

By:

 

159

 

SCHEDULE 7
 FORM OF ACCESSION DEED

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent and [·] as Security Trustee for itself and each of the other parties to the Intercreditor Agreement referred to below

 

From:                                                               [Restricted Subsidiary] and Red Football Limited

 

Dated:

 

Dear Sirs:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Facility Agreement”)

 

1.                                      We refer to the Facility Agreement and to the Intercreditor Agreement.  This deed (the “Accession Deed”) shall take effect as an Accession Deed for the purposes of the Facility Agreement and as a Debtor Accession Deed for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement).  Terms defined in the Facility Agreement have the same meaning in paragraphs 1 to 3 of this Accession Deed unless given a different meaning in this Accession Deed.

 

2.                                      [Restricted Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the terms of the Facility Agreement and the other Finance Documents (other than the Intercreditor Agreement) as an Additional [Borrower]/[Guarantor] pursuant to [Clause 33.2 (Additional Borrowers)]/[Clause 33.4 (Additional Guarantors)] of the Facility Agreement.  [Restricted Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [                   ].

 

3.                                      [The Company confirms that no Event of Default is continuing or would occur as a result of [Subsidiary] becoming an Additional Borrower.] (5)

 

4.                                      [Restricted Subsidiary’s] administrative details for the purposes of the Facility Agreement and the Intercreditor Agreement are as follows:

 

Address:

 

Fax No.:

 

Attention:

 

(5)    Include in the case of an Additional Borrower.

 

160

 

5.                                      [Restricted Subsidiary] (for the purposes of this paragraph 5, the “Acceding Debtor”) intends to [incur Liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of Liabilities under the following documents]:

 

[Insert details (date, parties and description) of relevant documents] the “Relevant Documents”.

 

161

 

IT IS AGREED as follows:

 

(a)           Terms defined in the Intercreditor Agreement shall, unless otherwise defined in this Accession Deed, bear the same meaning when used in this paragraph 5.

 

(b)           The Acceding Debtor and the Security Trustee agree that the Security Trustee shall hold:

 

(i)            [any Security in respect of Liabilities created or expressed to be created pursuant to the Relevant Documents;

 

(ii)           all proceeds of that Security; and]

 

(iii)          all obligations expressed to be undertaken by the Acceding Debtor to pay amounts in respect of the Liabilities to the Security Trustee as trustee for the Secured Parties (in the Relevant Documents or otherwise) and secured by the Transaction Security together with all representations and warranties expressed to be given by the Acceding Debtor (in the Relevant Documents or otherwise) in favour of the Security Trustee as trustee for the Secured Parties,

 

on trust for the Secured Parties on the terms and conditions contained in the Intercreditor Agreement.

 

(c)           The Acceding Debtor confirms that it intends to be party to the Intercreditor Agreement as a Debtor, undertakes to perform all the obligations expressed to be assumed by a Debtor under the Intercreditor Agreement and agrees that it shall be bound by all the provisions of the Intercreditor Agreement as if it had been an original party to the Intercreditor Agreement.

 

(d)           [In consideration of the Acceding Debtor being accepted as an Intra-Group Lender for the purposes of the Intercreditor Agreement, the Acceding Debtor also confirms that it intends to be party to the Intercreditor Agreement as an Intra-Group Lender, and undertakes to perform all the obligations expressed in the Intercreditor Agreement to be assumed by an Intra-Group Lender and agrees that it shall be bound by all the provisions of the Intercreditor Agreement, as if it had been an original party to the Intercreditor Agreement].

 

[5]/[6] This Accession Deed and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

162

 

THIS ACCESSION DEED has been signed on behalf of the Security Trustee (for the purposes of paragraph 5 above only), signed on behalf of the Company and executed as a deed by [Restricted Subsidiary] and is delivered on the date stated above.

 

 

	
[Restricted Subsidiary]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[EXECUTED AS A   DEED                          
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
By: [Subsidiary]
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director/Secretary
    
	
 
    	
 
    	
 
    
	
OR
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[EXECUTED AS A DEED
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: [Subsidiary]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature of Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name of Director
    
	
 
    	
 
    	
 
    
	
in the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address of witness
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Occupation of witness]
    
	
 
    	
 
    	
 
    
	
The   Company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Red Football Limited
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    

 

163

 

	
The   Security Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Full Name   of Current Security Trustee]
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

164

 

SCHEDULE 8
 AGREED SECURITY PRINCIPLES

 

1.           Security Principles

 

(a)           The guarantees and Security to be provided will be given in accordance with the principles set out in this Schedule. This Schedule addresses the manner in which the principles will impact on the guarantees and Security proposed to be taken in relation to this transaction.

 

(b)           The principles in this Schedule embody recognition by all parties that there may be certain legal and practical difficulties in obtaining guarantees and Security from members of the Group in their respective jurisdiction of incorporation. In particular:

 

(i)            general statutory limitations, financial assistance, corporate benefit, fraudulent preference, fraudulent conveyance, “thin capitalisation” and “capital maintenance” rules, retention of title claims and similar principles may limit the ability of a member of the Group to provide a guarantee or Security or may require that the guarantee be limited by an amount or otherwise;

 

(ii)           notwithstanding any term of any Finance Document, no obligation under this Agreement or under any Finance Document of a U.S. Obligor may be, directly or indirectly, (A) secured by any assets of a CFC (including any shares held directly or indirectly by a CFC); or (B) secured by a pledge in excess of 65% of the share capital (measured by the total combined voting power of the issued and outstanding voting shares) of a CFC.  In no event shall any CFC Obligor grant or be permitted to grant Security over any assets of such CFC Obligor with respect to any obligation of a U.S. Obligor;

 

(iii)          in the case of any joint venture or non-wholly owned subsidiary all guarantees and security will be limited to comply with restrictions in the joint venture, shareholders’ or other agreement or by law provided that the Company will use reasonable endeavours to avoid or overcome such restrictions;

 

(iv)          the Security and extent of its perfection will be agreed taking into account whether, in the opinion of the Agent (acting reasonably), the cost to the Group of providing Security is disproportionate to the benefit accruing to the Lenders (including where a class of assets to be secured includes material and immaterial assets, if the cost of granting security over the immaterial assets is disproportionate to the benefit of such security, security will be granted over the material assets only);

 

(v)           any assets subject to third party arrangements which are permitted or not prohibited by the Finance Documents and which prevent those assets from being charged will be excluded from any relevant Transaction Security provided that reasonable endeavours to obtain consent to charging any such assets shall be used by the relevant

 

165

 

member of the Group if the relevant asset is material to the Group as a whole;

 

(vi)          members of the Group will not be required to give guarantees or enter into Transaction Security Documents if it is not within the legal capacity of the relevant member of the Group or that would conflict with the fiduciary duties of their directors or contravene any legal prohibition or result in a risk of personal or criminal liability on the part of any officer provided that the relevant member of the Group shall use reasonable endeavours to overcome any such obstacle;

 

(vii)         perfection of Security, when required, and other required legal formalities will be completed as soon as practicable and, in any event, within the relevant time periods specified in the Finance Documents or, if earlier or to the extent no such time periods are specified in the Finance Documents, within the time periods specified by applicable law in order to ensure due perfection;

 

(viii)        unless granted under a global Transaction Security Document governed by the law of the jurisdiction of incorporation of the applicable Obligor or under English law all Security (other than any Security granted over certain of its subsidiaries as agreed) shall be governed by the law of and secure assets located in the jurisdiction of incorporation of that Obligor;

 

(ix)          only floating security will be granted over the hedging agreements entered into by members of the Group;

 

(x)           the Security Trustee will hold one set of security for all Lenders unless local law requires separate ranking security for different classes of debt; and

 

(xi)          no guarantee or security shall guarantee or secure any “Excluded Swap Obligations” defined in accordance with the LSTA Market Advisory Update dated February 15, 2013 entitled “Swap Regulations’ Implications for Loan Documentation”, and any update thereto by the LSTA

 

For the avoidance of doubt, in these Agreed Security Principles, “cost” includes, but is not limited to, income tax cost, registration taxes payable on the creation or enforcement or for the continuance of any Security, stamp duties, out-of-pocket expenses, and other fees and expenses directly incurred by the relevant grantor of Security or any of its direct or indirect owners, subsidiaries or Affiliates.

 

2.           Guarantors and Security

 

(a)           To the extent possible, each guarantee will be an upstream, cross-stream and downstream guarantee and each guarantee and Security will be for all liabilities of the relevant chargor under the Finance Documents in accordance

 

166

 

with, and subject to, the requirements of the principles set out in this Schedule in each relevant jurisdiction.

 

(b)           To the extent possible, all security shall be given in favour of the Security Trustee and not the Finance Parties individually. “Parallel debt” provisions will be used where necessary. To the extent possible, there should be no action required to be taken in relation to the guarantees or security when any Lender transfers any of its participation in the Facility to a new Lender.

 

(c)           No guarantees or security shall be granted by an Excluded Subsidiary or Unrestricted Subsidiary.

 

(d)           Security may only be granted over 65% of New Holdco’s share capital (measured by the total combined voting power of the issued and outstanding voting shares) and no security will be granted over the assets of New Holdco  and/or any Subsidiary of New Holdco (including for the avoidance of doubt over any shares of a Subsidiary of New Holdco).

 

3.             Terms of Security Documents

 

The following principles will be reflected in the terms of any security taken as part of this transaction:

 

(a)                                 the Security will be first ranking to the extent possible;

 

(b)                                 Security will not be enforceable until an Acceleration Event occurs and is continuing;

 

(c)                                  rights of set off (other than for netting purposes) will not be exercisable until an Event of Default occurs and is continuing;

 

(d)                                 the provisions of each Transaction Security Document will not be unduly burdensome on the relevant Obligor or interfere unreasonably with the operation of its business, will be limited to those required by applicable local law to create or perfect security and will not impose commercial obligations;

 

(e)                                  in the Transaction Security Documents there will be no repetition or extension of clauses set out in any Finance Document including those relating to notices, costs and expenses, indemnities, tax gross-up, distribution of proceeds and release of security; representations and undertakings shall be included in the Transaction Security Documents only to the extent relating to title to assets or required by local law in order to create or perfect the security expressed to be created thereby;

 

(f)                                   security will, where possible and practical, automatically create security over future assets of the same type as those already secured;

 

(g)                                  the Transaction Security Documents should not operate so as to prevent transactions which are permitted or not prohibited under the Finance Documents.

 

167

 

4.             Bank Accounts

 

(a)           Except as otherwise provided in the Debt Documents, each Obligor shall, prior to the occurrence of an Acceleration Event, be entitled to receive, withdraw or otherwise transfer any credit balance from time to time on any bank account over which security has been granted (other than any Assigned Account).

 

(b)           No Obligor shall be entitled to receive, withdraw or otherwise transfer any credit balance from time to time on any Assigned Account except with the prior consent of the Security Trustee (acting reasonably) or as permitted or not prohibited pursuant to the terms of the Debt Documents.

 

(c)           After the occurrence of an Acceleration Event, no Obligor shall be entitled to receive, withdraw or otherwise transfer any credit balance from time to time on any bank account over which security has been granted except with the prior consent of the Security Trustee (acting reasonably).

 

(d)           If required by local law to perfect the security, notice of the security will be served on the account bank within 5 Business Days of the Security being granted and the Obligor shall use its reasonable endeavours to obtain an acknowledgement of that notice within 30 Business Days of service. If the Obligor has used its reasonable endeavours but has not been able to obtain acknowledgement its obligation to obtain acknowledgement shall cease on the expiry of that 30 Business Days provided, however, if within those 30 Business Days, the relevant account bank has agreed to provide such acknowledgement, but has not yet done so, the relevant Obligor must continue to use all reasonable endeavours to obtain such acknowledgment until such acknowledgment is provided or if the relevant account bank indicates it no longer agrees to provide the acknowledgement. This provision does not apply to Assigned Accounts in respect of which notice will be provided in accordance with the provisions of the Existing Debenture.

 

5.             Fixed Assets

 

(a)           Except as otherwise provided in the Debt Documents, if an Obligor grants security over its fixed assets it shall, prior to the occurrence of an Acceleration Event, be free to deal with those assets in the course of its business.

 

(b)           Subject to any requirements under the Existing Security Documents, no notice whether to third parties or by attaching a notice to the fixed assets shall be prepared or given until an Acceleration Event occurs and is continuing.

 

6.             Insurance

 

(a)           Except as otherwise provided in the Debt Documents, if an Obligor grants security over its insurance policies it shall, prior to the occurrence of an Acceleration Event, be free to deal with those policies in the course of its business.

 

(b)           If required by local law to perfect the security, notice of the security will be served on the insurance provider within 5 Business Days of the security being

 

168

 

granted and the Obligor shall use its reasonable endeavours to obtain an acknowledgement of that notice within 30 Business Days of service. If the Obligor has used its reasonable endeavours but has not been able to obtain acknowledgement its obligation to obtain acknowledgement shall cease on the expiry of the specified 30 Business Day period provided, however, if within those 30 Business Days, the relevant insurance provider has agreed to provide such acknowledgement, but has not yet done so, the relevant Obligor must continue to use all reasonable endeavours to obtain such acknowledgment until such acknowledgment is provided or if the relevant insurance provider indicates it no longer agrees to provide the acknowledgement. This provision does not apply to an Insurance Policy (as that term is in the Existing Debenture) in respect of which notice will be provided in accordance with the provisions of the Existing Debenture.

 

7.             Intellectual Property

 

Except as otherwise provided in the Debt Documents, if an Obligor grants security over its intellectual property it shall, prior to the occurrence of an Acceleration Event, be free to deal with those assets in the course of its business (including allowing its intellectual property to lapse if no longer material to its business).

 

8.             Intercompany receivables

 

(a)           Except as otherwise provided in the Debt Documents, if an Obligor grants security over its intercompany receivables it shall, prior to the occurrence of an Acceleration Event, be free to deal with those receivables in the course of its business.

 

(b)           If required by local law to perfect the security, notice of the security will be served on the relevant lender within 5 Business Days of the security being granted and the Obligor shall obtain an acknowledgement of that notice within 30 Business Days of service. Irrespective of whether notice of the security is required for perfection if the service of notice would prevent the Obligor from dealing with an intercompany receivable in the course of its business no notice of security shall be served until an Acceleration Event occurs and is continuing. This provision does not apply to intercompany receivables charged under the Existing Debenture in respect of which notice will be provided in accordance with the provisions of the Existing Debenture.

 

9.             Trade receivables

 

(a)           Except as otherwise provided in the Debt Documents, if an Obligor grants security over its trade receivables it shall, prior to the occurrence of an Acceleration Event, be free to deal with those receivables in the course of its business.

 

(b)           No notice of security may be served until an Acceleration Event occurs and is continuing.

 

169

 

10.          Shares

 

(a)           Fixed charges and/or pledges over shares in joint ventures, Unrestricted Subsidiaries or over minority interests shall not be required.

 

(b)           The Transaction Security Document will be governed by the laws of the jurisdiction of incorporation of the entity whose shares are being secured and not by the law of the jurisdiction of incorporation of the Obligor granting the security.

 

(c)           Until an Acceleration Event occurs and is continuing, the charging Obligor will be permitted to retain and to exercise the voting rights to any shares and the company whose shares have been charged will be permitted to pay dividends.

 

(d)           Unless the restriction is required by law or regulation or such restriction is only applicable if certain conditions have not been met, the constitutional documents of the company whose shares have been charged will be amended to remove any restriction on the transfer or the registration of the transfer of the shares on the taking or enforcement of the security granted over them.

 

11.          Excluded assets

 

For the avoidance of doubt, any assets excluded from the Transaction Security existing as of the date of this Agreement, including but not limited to, the Trafford Training Centre and Academy at Carrington, Manchester (title number GM785864), shall not be subject to any Transaction Security.

 

12.          Release of Security

 

Unless required by local law the circumstances in which the security shall be released should not be dealt with in individual Transaction Security Documents but, if so required, shall, except to the extent required by local law, be the same as those set out in the Intercreditor Agreement.

 

170

 

SCHEDULE 9
 FORM OF COMPLIANCE CERTIFICATE

 

To:                          Bank of America Merrill Lynch International Limited as Agent

 

Matt Wyche

Senior Vice President

214 N. Tryon Street

21st Floor

Charlotte, NC 28255

United States of America

(980) 388-3826 (telephone)

(704) 208-2794 (fax)

Matt.wyche_iv@baml.com

 

Fiona Malitsky

EMEA Legal Entity Credit Risk

Bank of America Merrill Lynch
 2 King Edward Street, London, EC1A 1HQ, United Kingdom

+44 207 996 0462

fiona.malitsky@baml.com

 

From:                     Red Football Limited

 

Dated:

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Facility Agreement”)

 

Dear Sirs:

 

1.             We refer to the Facility Agreement.  This is a Compliance Certificate.  Terms defined in the Facility Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2.             We confirm that Consolidated EBITDA for the most recently completed Relevant Period was [·] and we set out in the Schedule (Calculation of Consolidated EBITDA, Total Net Leverage Ratio) hereto detail of the calculation of this amount.

 

3.             [We confirm that no Default is continuing.]*

 

4.             [We confirm that the following companies constitute Material Companies for the purposes of the Facility Agreement: [·].]

 

171

 

5.             [We confirm that the aggregate of the earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA) of the Guarantors and the aggregate gross assets of the Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-Restricted Group items) represents not less than 85 per cent. of Consolidated EBITDA and consolidated gross assets of all members of the Restricted Group ((in each case not including the Excluded Subsidiaries)).]

 

6.             We confirm that the Total Net Leverage Ratio for the most recently completed Relevant Period was [·] and we set out in the Schedule (Calculation of Consolidated EBITDA, Total Net Leverage Ratio) hereto detail of the calculation of this amount.

 

	
Signed
    	
 
    	
 
    	
 
    
	
 
    	
[              ]
    	
 
    	
[              ]
    
	
 
    	
of
    	
 
    	
of
    
	
 
    	
Red Football Limited
    	
 
    	
Red Football Limited
    

 

[insert applicable certification language]

 

 

	
 
    	
 
    
	
for and on behalf of [name of auditors of Red Football Limited]
    

 

NOTES:

 

*          If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

 

172

 

THE SCHEDULE

 

CALCULATION OF CONSOLIDATED EBITDA, TOTAL NET LEVERAGE RATIO

 

1.                  Calculation of Consolidated EBITDA

 

	
Relevant line item
    	
 
    	
Amount (£)
    
	
The consolidated profits of the Restricted Group   from ordinary activities before taxation in respect of that Relevant Period 
    	
 
    	
[·]
    
	
including any amount attributable to the amortisation or   impairment of intangible assets or the depreciation or impairment of tangible   assets
    	
 
    	
[·]
    
	
including any Consolidated Net Finance Charges
    	
 
    	
[·]
    
	
including any one-off expenses or charges incurred in connection   with the incurrence or issuance of (i) any Financial Indebtedness under   or which is permitted by the Finance Documents or (ii) any other equity   issuance which is permitted by the Finance Documents
    	
 
    	
[·]
    
	
including any items treated as exceptional or extraordinary   items
    	
 
    	
[·]
    
	
including any accrued interest received by or owing to any   member of the Restricted Group
    	
 
    	
[·]
    
	
including any realised and unrealised exchange gains and losses   including those arising on translation of currency debt
    	
 
    	
[·]
    
	
including any gain or loss arising from an upward or downward   revaluation of any asset or arising from the acquisition or disposal of   player registrations
    	
 
    	
[·]
    
	
deducting any profit of any member of the Restricted Group which   is attributable to minority interests
    	
 
    	
[·]
    
	
deducting any profit of any investment or entity (which is not   itself a member of the Restricted Group) in which any member of the   Restricted Group has an ownership interest to the extent that the amount of   such profit included in the financial statements of the Restricted Group   exceeds the amount (net of applicable withholding tax) received in cash by   members of the Restricted Group through distributions by such investment or   entity
    	
 
    	
[·]
    
	
after excluding the amount of any profit or loss which is   attributable to any Material Disposal made in the Relevant Period
    	
 
    	
[·]
    
	
after deducting to the extent not already taken into account,   all 
    	
 
    	
[·]
    

 

173

 

	
Relevant line item
    	
 
    	
Amount (£)
    
	
rent and other property costs of a revenue nature
    	
 
    	
 
    
	
Consolidated EBITDA
    	
 
    	
[·]
    

 

2.                  Calculation of Total Net Leverage Ratio

 

	
Relevant line item
    	
 
    	
Amount (£)
    
	
the aggregate amount of all obligations of the   Restricted Group for or in respect of the principal amount of Borrowings
    	
 
    	
[·]
    
	
excluding obligations to any other member of the Restricted   Group
    	
 
    	
[·]
    
	
excluding Subordinated Liabilities
    	
 
    	
[·]
    
	
including, in the case of finance leases, only the capitalised   value thereof
    	
 
    	
[·]
    
	
deducting aggregate amount of Cash and Cash Equivalent   Investments held by any member of the Restricted Group at that time
    	
 
    	
[·]
    
	
Consolidated EBITDA
    	
 
    	
[·]
    
	
Total Net Leverage Ratio
    	
 
    	
[·]:   1.00
    

 

174

 

SCHEDULE 10
 FORM OF RESIGNATION LETTER

 

To:                                                                             Bank of America Merrill Lynch International Limited as Agent

 

Matt Wyche

Senior Vice President

214 N. Tryon Street

21st Floor

Charlotte, NC 28255

United States of America

(980) 388-3826 (telephone)

(704) 208-2794 (fax)

Matt.wyche_iv@baml.com

 

Fiona Malitsky

EMEA Legal Entity Credit Risk

Bank of America Merrill Lynch
 2 King Edward Street, London, EC1A 1HQ, United Kingdom

+44 207 996 0462

fiona.malitsky@baml.com

 

From:                                                               [resigning Obligor] and [Company]

 

Dated:

 

Dear Sirs

 

Red Football Limited / MU Finance plc — $225,000,000 Facility Agreement

dated 20 May 2013 (as amended, the “Facility Agreement”)

 

1.                                We refer to the Facility Agreement.  This is a Resignation Letter.  Terms defined in the Facility Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter.

 

2.                                Pursuant to [Clause 33.3 (Resignation of a Borrower)]/[Clause 33.5 (Resignation of a Guarantor)], we request that [resigning Obligor] be released from its obligations as a [Borrower/Guarantor] under the Facility Agreement and the Finance Documents (other than the Intercreditor Agreement).

 

3.                                We confirm that:

 

(a)                           no Event of Default is continuing or would result from the acceptance of this request; [and]

 

(b)                           no payment is due from [resigning Obligor]; [and]

 

(c)                            [this request is given in relation to a Third Party Disposal of [resigning Obligor];[ and]*

 

175

 

(d)                           [·]**

 

4.                                This Resignation Letter and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

5.                                The Company agrees to indemnify the Finance Parties and any Receivers or Delegates for any costs, expenses, or liabilities which would have been payable by [resigning Obligor] in connection with the Finance Documents but for the release set out in paragraph 1 above.

 

	
[Company]
    	
[resigning Obligor]
    
	
 
    	
 
    
	
By:
    	
By:
    

 

176

 

NOTES:

 

*                               Insert where resignation as a result of a Third Party Disposal.

**                        Insert any other conditions required by the Facility Agreement.

 

177

 

SCHEDULE 11
 [INTENTIONALLY LEFT BLANK]

 

178

 

SCHEDULE 12
 [INTENTIONALLY LEFT BLANK]

 

179

 

SCHEDULE 13
 MATERIAL COMPANIES

 

Red Football Limited

 

Red Football Junior Limited

 

Manchester United Limited

 

Manchester United Football Club Limited

 

MU Finance plc

 

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SCHEDULE 14
 [INTENTIONALLY LEFT BLANK]

 

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SCHEDULE 15
 [INTENTIONALLY LEFT BLANK]

 

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SCHEDULE 16
 TABLE OF VALUES FOR X

 

1.                                      The value of X in any Financial Year will be the amount determined using the Champions League Adjustment Spreadsheet and set out in the row labelled “EBITDA” in the column corresponding to that Financial Year after the following adjustments (the “Adjustments”) have been made in the electronic version of the spreadsheet (and, for the avoidance of doubt, with no other adjustments):

 

(a)                                 the figure in the Total Match Day income row of the spreadsheet for a Financial Year (the “Relevant Year”) will be determined by: (i) adjusting the revenue in the line item entitled “European Cups” in the Annual Financial Statements for the most recent Financial Year in which the first team of MUFC participated in the Champions League (the “Previous Year”) to reflect any increase or decrease in ticket prices announced prior to the start of the Relevant Year that would be applicable in the Relevant Year; (ii) aggregating the amount described in paragraph (i) above with the revenue (increased or decreased for the then prevailing rate (RPI) of inflation or deflation) in the line items entitled “Hospitality — Match Day” and “Catering (match day)” (minus any intra-Restricted Group items) in the Annual Financial Statements for the Previous Year; (iii) dividing the sum of the amount described in paragraph (ii) by the number of Champions League matches played at the Stadium in the Previous Year; and (iv) multiplying the product of paragraph (iii) by four;

 

(b)                                 any increase or decrease in the Sterling Equivalent (as defined in Schedule 17 (Restrictive Covenants)) of Media and sponsorship revenues that would have been received by the Restricted Group from UEFA in respect of the Champions League (or, in each case, any replacement body or competition) had the first team of MUFC finished third in the Premier League (or any replacement competition) and qualified for the first knock-out stage of the Champions League will be taken into account in calculating the figure in the row labelled “European TV & Radio” in the column corresponding to that Financial Year; and

 

(c)                                  any increase or decrease in the portion of revenue from the Specified Contracts described in paragraphs (a) and (b) of the definition thereof (as applicable) (or any replacement contract) that is dependent on the first team of MUFC qualifying for the Champions League in a Financial Year will be taken into account in calculating the figure in the row labelled “Nike” (in relation to the Nike Agreement) and the row labelled “Adidas” (in relation to the adidas Agreement) in the column corresponding to that Financial Year.

 

2.                                      The add back in respect of each Financial Year shall be applied according to the following quarterly schedule:

 

	
Financial Quarter Ending
    	
 
    	
Percentage Application
    	
 
    
	
September
    	
 
    	
20.0
    	
%
    
	
December
    	
 
    	
45.0
    	
%
    
	
March
    	
 
    	
35.0
    	
%
    
	
June
    	
 
    	
0.0
    	
%
    

 

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SCHEDULE 17
 RESTRICTIVE COVENANTS

 

1.                                      ASSET SALES

 

1.1                               The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, consummate an Asset Sale unless:

 

(a)                                 the Company (or the Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal to the Fair Market Value (measured as of the date of the definitive agreement with respect to such Asset Sale) of the assets or Equity Interests issued or sold or otherwise disposed of; and

 

(b)                                 at least 75 per cent. of the consideration received in the Asset Sale by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents.  For purposes of this provision, each of the following will be deemed to be cash:

 

(i)                                     any liabilities, as shown on the Company’s most recent consolidated balance sheet, of the Company or any of its Restricted Subsidiaries (other than contingent liabilities and liabilities that are by their terms subordinated to the Facility and any guarantee thereof) that are assumed by the transferee of any such assets pursuant to a customary novation or indemnity agreement that releases the Company or such Restricted Subsidiary from or indemnifies against further liability;

 

(ii)                                  any securities, notes or other obligations received by the Company or any such Restricted Subsidiary from such transferee that are converted by the Company or such Restricted Subsidiary into cash or Cash Equivalents within 90 days following the closing of the Asset Sale, to the extent of the cash or Cash Equivalents received in that conversion;

 

(iii)                               Indebtedness of any Restricted Subsidiary of the Company or preferred stock of an Obligor other than the Company, in each case that is no longer a Restricted Subsidiary of the Company as a result of such Asset Sale, to the extent that the Company and its Restricted Subsidiaries following such Asset Sale are released from any guarantee of such Indebtedness or preferred stock in connection with such Asset Sale;

 

(iv)                              consideration consisting of Indebtedness of the Company or any of its Restricted Subsidiaries or preferred stock of an Obligor other than the Company which is either repaid in full or cancelled in connection with such Asset Sale; and

 

(v)                                 any Capital Stock or assets of the kind referred to in paragraphs (b) or (d) of Clause 1.2 below,

 

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provided that, in no event will the Company or any of its Restricted Subsidiaries sell, lease, convey or otherwise dispose of all or part of the Specified Asset other than to an Obligor.

 

1.2                               Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds:

 

(a)                                 to repay, repurchase, prepay or redeem (i) outstanding amounts of the Facility, (ii) Indebtedness of any Obligor incurred pursuant to paragraph (d) of Clause 3.2 below that is secured by a Lien on the Collateral and that is not subordinated in right of payment to the obligations of the Obligors hereunder (including without limitation Clause 25 (Guarantee and Indemnity)) or under any other Finance Document, and, if the Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto, (iii) Indebtedness of a Restricted Subsidiary of the Company that is not a Guarantor to the extent that such Indebtedness is not subordinated in right of payment to the Facility and any guarantee thereof, (iv) the Notes pursuant to an offer to all holders of Notes at a purchase price equal to 100 per cent. of the principal amount, plus accrued and unpaid interest and Make-Whole Amount, if any, to the date of purchase (a “Notes Offer”), or (v) obligations under any pari passu Indebtedness that is secured by a Lien on the Collateral that ranks equal to the Lien on the Collateral securing the Facility and any guarantee thereof and that is not subordinated in right of payment to the Lenders hereunder (including without limitation Clause 25 (Guarantee and Indemnity)) or under any other Finance Document, and, if the Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto, concurrently with an Excess Proceeds Prepayment Offer;

 

(b)                                 to acquire (or enter into a binding agreement to acquire, provided that such commitment will be subject only to customary conditions (other than financing) and such acquisition will be consummated within 180 days after the end of such 360 day period) all or substantially all of the assets of, or any Capital Stock of, another Permitted Business, if, after giving effect to any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Company;

 

(c)                                  to make a capital expenditure; or

 

(d)                                 to acquire (or enter into a binding agreement to acquire, provided that such commitment will be subject only to customary conditions (other than financing) and such acquisition will be consummated within 180 days after the end of such 360 day period) other assets (other than Capital Stock) that are not classified as current assets under IFRS and that are used or useful in a Permitted Business,

 

provided, however, that, pending the final application of any Net Proceeds, the Company (or the applicable Restricted Subsidiary) may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in any manner that is not prohibited by the Finance Documents.

 

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1.3                               Any Net Proceeds from Asset Sales that are not applied or invested as provided in Clause 1.2 above will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds £15.0 million, within five Business Days thereof, the Company will make an offer (an “Excess Proceeds Prepayment Offer”) to the Lenders and may make an offer to all holders of the Notes or other Indebtedness that is pari passu with the Facility and any guarantee thereof containing provisions similar to those set forth in this Agreement with respect to offers to purchase, prepay, cancel or redeem with the proceeds of sales of assets in accordance with this Clause 1 (Asset Sales) to purchase, prepay, redeem or cancel the maximum principal amount of and correspondingly reduce commitments with respect thereto or cancel the Facility, the Notes and such other pari passu Indebtedness (plus accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be purchased, prepaid, redeemed or cancelled out of the Excess Proceeds. The offer price in any Excess Proceeds Prepayment Offer will be equal to 100 per cent of the principal amount of all such Indebtedness offered to be prepaid, plus accrued and unpaid interest and Additional Amounts, if any, to the date of prepayment or cancellation. If any Excess Proceeds remain after consummation of an Excess Proceeds Prepayment Offer, the Company and its Restricted Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by this Agreement. If the aggregate principal amount of the Facility, the Notes and any other Indebtedness that is pari passu with the Facility and any guarantee thereof tendered into (or required to be prepaid, redeemed or cancelled in connection with) such Excess Proceeds Prepayment Offer exceeds the amount of Excess Proceeds, or if the aggregate principal amount of the Facility exceeds the amount of Net Proceeds to be so applied, such Net Proceeds shall be allocated to prepay the Facility, such Notes and such other Indebtedness that is pari passu with the Facility and any guarantee thereof to be prepaid on a pro rata basis based on the amounts tendered or required to be prepaid, redeemed or cancelled. For the purposes of calculating the principal amount of any such Indebtedness not denominated in U.S. Dollars, such Indebtedness shall be calculated by converting any such principal amounts into their U.S. Dollar Equivalent determined as of the Business Day immediately prior to the date on which the Excess Proceeds Prepayment Offer is announced. Upon completion of each Excess Proceeds Prepayment Offer, the amount of Excess Proceeds will be reset at zero.

 

2.                                      RESTRICTED PAYMENTS

 

2.1                               The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(a)                                 declare or pay any dividend or make any other payment or distribution on account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Company or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company and other than dividends or distributions payable to the Company or any of its Restricted Subsidiaries);

 

(b)                                 purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the

 

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Company) any Equity Interests of the Company or any direct or indirect parent entity of the Company;

 

(c)                                  make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness of the Company or any Obligor that is contractually subordinated to the Facility and any guarantee thereof (excluding (i) any intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries or (ii) the purchase, repurchase, redemption, defeasance or other acquisition or retirement of any Indebtedness of the Company or any Obligor that is contractually subordinated to the Facility or the guarantee thereof purchased in anticipation of satisfying a sinking fund obligation, principal instalment or final maturity, in each case due within one year of the date of purchase, repurchase, redemption, defeasance or other acquisition or retirement);

 

(d)                                 make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Subordinated Shareholder Funding; or

 

(e)                                  make any Restricted Investments;

 

(all such payments and other actions set forth in the foregoing paragraphs (a) through (e) above being collectively referred to as “Restricted Payments”), unless, at the time of and after giving effect to such Restricted Payment:

 

(i)                                     no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;

 

(ii)                                  the Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least £1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in paragraph (a) of Clause 3.1 (Incurrence of Indebtedness and Issuance of Preferred Stock) below; and

 

(iii)                               such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted Subsidiaries since the Second Amendment Effective Date (excluding Restricted Payments permitted by paragraphs (b), (c), (e), (f), (g), (h), (i), (j), (k), (m) and (n) of Clause 2.2 (Restricted Payments)) is less than the sum, without duplication, of:

 

(A)                               50 per cent. of the Consolidated Net Income of the Company for the period (taken as one accounting period) from the beginning of the first fiscal quarter commencing after 30 June 2015 to the end of the Company’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100 per cent. of such deficit); plus

 

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(B)                               100 per cent. of the aggregate net cash proceeds received by the Company since the Second Amendment Effective Date as a contribution to its common equity capital or from the issue or sale of Equity Interests of the Company (other than Disqualified Stock and Excluded Contributions) or from Subordinated Shareholder Funding or from the issue or sale of convertible or exchangeable Disqualified Stock of the Company or convertible or exchangeable debt securities of the Company, in each case that have been converted into or exchanged for Equity Interests of the Company (including such cash proceeds received in connection with any such conversion or exchange) (other than Equity Interests (or Disqualified Stock or debt securities) sold to a Subsidiary of the Company), excluding, in each case, any such contribution that constitutes Relevant Equity; plus

 

(C)                               to the extent that Restricted Investments which were made after the Second Amendment Effective Date are sold for cash and/or Cash Equivalents or otherwise liquidated or repaid for cash and/or Cash Equivalents, the lesser of (A) the cash return of capital with respect to such Restricted Investments (less the cost of disposition, if any) and (B) the initial amount of such Restricted Investments; plus

 

(D)                               to the extent that any Unrestricted Subsidiary of the Company designated as such after the Second Amendment Effective Date is redesignated as a Restricted Subsidiary after the Second Amendment Effective Date, the lesser of (i) the Fair Market Value of the Company’s Investment in such Subsidiary as of the date of such redesignation or (ii) such Fair Market Value as of the date on which such Subsidiary was originally designated as an Unrestricted Subsidiary after the Second Amendment Effective Date; plus

 

(E)                                upon the full and unconditional release of a Restricted Investment that is a guarantee made by the Company or one of its Restricted Subsidiaries to any Person, an amount equal to the amount of such guarantee; plus

 

(F)                                 the initial amount of any Restricted Investment made after the Second Amendment Effective Date in a Person that becomes a Restricted Subsidiary; plus

 

(G)                               100 per cent. of any dividends received in cash by the Company or a Restricted Subsidiary after the Second Amendment Effective Date from an Unrestricted Subsidiary, to the extent that such dividends were not otherwise included in the Consolidated Net Income of the Company for such period.

 

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2.2                               If no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment, the provisions of Clause 2.1 (Restricted Payments) will not prohibit:

 

(a)                                 the payment of any dividend or the consummation of any irrevocable redemption within 60 days after the date of declaration of the dividend or giving of the redemption notice, as the case may be, if at the date of declaration or notice, the dividend or redemption payment would have complied with the provisions of this Agreement;

 

(b)                                 the making of any Restricted Payment in exchange for, or out of or with the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock) or from the substantially concurrent contribution of common equity capital or Subordinated Shareholder Funding to the Company; (excluding any such contribution that constitutes Relevant Equity) provided that the amount of any such net cash proceeds that are utilised for any such Restricted Payment will be excluded from paragraph (iii)(B) of Clause 2.1 above;

 

(c)                                  the repurchase, redemption, defeasance or other acquisition or retirement for value of (i) Indebtedness of the Company or any Obligor that is contractually subordinated to the Facility and any guarantee thereof with the net cash proceeds from a substantially concurrent incurrence of Permitted Refinancing Indebtedness; or (ii) Indebtedness of the Company or any Obligor that is subordinated in right of payment to the Facility or any guarantee thereof (other than any Indebtedness so subordinated and held by Affiliates of the Issuer) upon a Change of Control or an Asset Sale to the extent required by the agreements governing such Indebtedness, but only if, prior to offering to purchase, purchasing or repaying such Indebtedness, (x) the Company shall have complied with its obligations under Clause 1 (Asset Sales) and shall have prepaid the full principal amount of the Facility required to be prepaid under Clause 1 (Asset Sales) and (y) the Obligors shall have otherwise complied with the terms of this Agreement;

 

(d)                                 the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company, any of its Restricted Subsidiaries or any Parent Entity held by any current or former officer, director, employee or consultant of the Company or any of its Restricted Subsidiaries pursuant to any equity subscription agreement, stock option agreement, shareholders’ agreement, employment agreements, or similar agreements or stock option plans; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed £3.0 million in any twelve month period; but provided, further, that such amount in any twelve-month period may be increased by an amount not to exceed the cash proceeds received by the Company or any of its Restricted Subsidiaries from the sale of Equity Interests of the Company, any of its Restricted Subsidiaries or any Parent Entity to current or former officers, directors, employees or consultants of the Company, any of its Restricted Subsidiaries or any Parent Entity to the extent the cash proceeds from the sale of Equity Interests have not otherwise been applied to the making of Restricted Payments pursuant to

 

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paragraph (iii) of Clause 2.1 (Restricted Payments) and do not constitute Relevant Equity;

 

(e)                                  the repurchase of Equity Interests of the Company or any Parent Entity deemed to occur upon the exercise of stock options to the extent such Equity Interests represent a portion of the exercise price of those stock options;

 

(f)                                   the declaration and payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Company or any preferred stock of any Restricted Subsidiary issued on or after the Second Amendment Effective Date in accordance with the Fixed Charge Coverage Ratio test set forth in paragraph (a) of Clause 3.1 (Incurrence of Indebtedness and Issuance of Preferred Stock);

 

(g)                                  payments of cash, dividends, distributions, advances or other Restricted Payments by the Company or any of its Restricted Subsidiaries to allow the payment of cash in lieu of the issuance of fractional shares upon (i) the exercise of options or warrants or (ii) the conversion or exchange of Capital Stock of any such Person;

 

(h)                                 the payment of any dividend (or, in the case of any partnership or limited liability company, any similar distribution) by a Restricted Subsidiary of the Company to the holders of its Equity Interests on a pro rata basis;

 

(i)                                     payments pursuant to any tax sharing agreement or arrangement relating to taxes among the Company and its Subsidiaries and other Persons with which the Company or any of its Subsidiaries is required or permitted to file a consolidated tax return or with which the Company or any of its Restricted Subsidiaries is a part of a group for tax purposes; provided, however, that such payments will not exceed the amount of tax that the Company and its Subsidiaries would owe on a standalone basis and the related tax liabilities of the Company and its Subsidiaries are relieved thereby;

 

(j)                                    the declaration and payment of dividends or other distributions, or the making of loans, by the Company or any of its Restricted Subsidiaries to any Parent Entity in amounts and at times required to pay:

 

(i)                                     franchise taxes and other fees, taxes and expenses required to maintain the corporate existence of any Parent Entity;

 

(ii)                                  general corporate overhead expenses of any Parent Entity to the extent such expenses are attributable to the ownership or operation of the Company and its Restricted Subsidiaries or related to the proper administration of such Parent Entity, including (i) fees and expenses properly incurred in the ordinary course of business to auditors and legal advisors; and (ii) payments in respect of services provided by directors, officers or employees of any such Parent Entity, not to exceed £3.0 million in any calendar year;

 

(iii)                               any income taxes (including, for the avoidance of doubt, United Kingdom corporation tax), to the extent such income taxes are

 

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attributable to the income or ownership of the Company and any of its Restricted Subsidiaries and, to the extent of the amount actually received in cash from its Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent attributable to the income or ownership of such Unrestricted Subsidiaries;

 

(iv)                              costs (including all professional fees and expenses) incurred by any Parent Entity in connection with reporting obligations under or otherwise incurred in connection with compliance with applicable laws, rules or regulations of any governmental, regulatory or self-regulatory body or stock exchange, the Finance Documents or any other agreement or instrument relating to Indebtedness of the Company or any of its Restricted Subsidiaries, including in respect of any reports filed with respect to the U.S. Securities Act, U.S. Exchange Act or the respective rules and regulations promulgated thereunder; and

 

(v)                                 fees and expenses of any Parent Entity incurred in relation to any public offering or other sale of Capital Stock or Indebtedness (A) where the net proceeds of such offering or sale are intended to be received by or contributed to the Company or any of its Restricted Subsidiaries; (B) in a prorated amount of such expenses in proportion to the amount of such net proceeds intended to be so received or contributed; or (C) otherwise on an interim basis prior to completion of such offering so long as any Parent Entity will cause the amount of such expenses to be repaid to the Company or the relevant Restricted Subsidiary out of the proceeds of such offering promptly if completed;

 

(k)                                 so long as the Consolidated EBITDA of the Company is equal to or greater than £250.0 million for the most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date of such Restricted Payment, any Restricted Payment;

 

(l)                                     following a Public Equity Offering that results in a Public Market of the Capital Stock of the Company or any Parent Entity, the payment of dividends on the Capital Stock of the Company up to 6 per cent. per annum of the net cash proceeds received by the Company in any such Public Equity Offering or any subsequent public offering of such Capital Stock, or the net cash proceeds of any such Public Equity Offering or subsequent public offering of such Capital Stock of any Parent Entity that are contributed in cash to the Company’s equity (other than through the issuance of Disqualified Stock); provided that if such Public Equity Offering was of Capital Stock of a Parent Entity, the net proceeds of any such dividend are used to fund a corresponding dividend in equal or greater amount on the Capital Stock of such Parent Entity;

 

(m)                             to the extent constituting a Restricted Payment, any transfer, assignment or novation by MUL and/or any other member of the Restricted Group of all or any portion of the assets described in paragraph (a) of the definition of “New Holdco Business” to any member of the New Holdco Group made in accordance with a Permitted Reorganisation, including without limitation the

 

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transfer of employees, assets (including goodwill) and/or relevant partner or supplier contracts; or

 

(n)                                 other Restricted Payments in an aggregate amount not to exceed £160.0 million since the Second Amendment Effective Date.

 

2.3                               The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.

 

3.                                      INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK

 

3.1                               The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become or remain directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the Company will not, and will not permit any other Obligor to, issue any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that:

 

(a)                                 subject to Clause 3.3 below, the Company may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, the Obligors (other than the Company) may issue Disqualified Stock, and the Obligors (other than the Company) and New Holdco or any Restricted Subsidiary that is a Subsidiary of New Holdco (including without limitation, Sponsorship Newco) may incur Indebtedness (including Acquired Debt) or issue preferred stock, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock is issued, as the case may be, would have been at least 2.0 to 1.0, in each case, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as the case may be, at the beginning of such four-quarter period provided that, if the Indebtedness is to be incurred by New Holdco or any Restricted Subsidiary that is a Subsidiary of New Holdco (including, without limitation, Sponsorship Newco) the creditor(s) or, as the case may be, representative of such creditor(s) of such Indebtedness shall have become parties to the Intercreditor Agreement or entered into an intercreditor agreement providing for pro-rata sharing of enforcement proceeds or payments upon default among such creditors and the Lenders and otherwise satisfactory to the Agent (acting reasonably and in good faith), provided that the terms of such intercreditor agreement are no more onerous to New Holdco and its Subsidiaries than the terms of the Intercreditor Agreement; and

 

(b)                                 if the Indebtedness to be incurred is Senior Secured Indebtedness, subject to Clause 3.3 below, the Obligors, New Holdco or any Restricted Subsidiary that is a Subsidiary of New Holdco (including without limitation, Sponsorship Newco) may incur such Senior Secured Indebtedness if the Consolidated

 

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Senior Secured Leverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred is less than 4.0 to 1.0 determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if such Indebtedness had been incurred at the beginning of such four-quarter period provided that, if the Senior Secured Indebtedness to be incurred is to be incurred by New Holdco or any Restricted Subsidiary that is a Subsidiary of New Holdco (including, without limitation, Sponsorship Newco) the creditor(s) or, as the case may be, representative of such creditor(s) of such Indebtedness shall have become parties to the Intercreditor Agreement or entered into an intercreditor agreement providing for pro-rata sharing of enforcement proceeds or payments upon default among such creditors and the Lenders and otherwise satisfactory to the Agent (acting reasonably and in good faith), provided that the terms of such intercreditor agreement are no more onerous to New Holdco and its Subsidiaries than the terms of the Intercreditor Agreement.

 

3.2                               Subject to Clause 3.3 below, Clause 3.1 will not prohibit the incurrence of any of the following items of Indebtedness (collectively, the “Permitted Debt”):

 

(a)                                 the incurrence of Indebtedness under the Facility;

 

(b)                                 the incurrence by the Company and its Restricted Subsidiaries of Existing Indebtedness provided that, on or prior to the Second Amendment Effective Date the Indebtedness of the Obligors evidenced by the Existing Notes and guaranteed pursuant to the Existing Note Guarantees shall be repaid in full;

 

(c)                                  the incurrence by the Company and the Obligors of Indebtedness evidenced by the Notes and the Note Guarantee;

 

(d)                                 Indebtedness under the RCF Facilities in an aggregate principal amount at any one time outstanding (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries thereunder) not to exceed £150.0 million;

 

(e)                                  the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing or refinancing all or any part of the purchase price or cost of design, construction, lease, installation or improvement of property (real or personal), plant or equipment used or useful in a Permitted Business, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred in exchange for, or the net proceeds of which were used to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this paragraph (e), not to exceed £50.0 million at any time outstanding;

 

(f)                                   the incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany Indebtedness) that was permitted by

 

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the Finance Documents to be incurred under Clause 3.1 or any of paragraphs (b), (c), (d), (e), (f) or (m) of this Clause 3.2;

 

(g)                                  the incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Company and any of such Restricted Subsidiaries; provided, however, that:

 

(i)                                     if any Obligor is the obligor on such Indebtedness and the payee is not an Obligor, such Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash of all Obligations then due with respect to the Facility and the Finance Documents; and

 

(ii)                                  (A) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Company or a Restricted Subsidiary of the Company and (B) any sale or other transfer of any such Indebtedness to a Person that is neither the Company nor a Restricted Subsidiary of the Company, will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this paragraph (g);

 

(h)                                 the issuance by any Restricted Subsidiary of the Company to the Company or to any of the Company’s Restricted Subsidiaries of shares of preferred stock; provided, however, that:

 

(i)                                     any subsequent issuance or transfer of Equity Interests that results in any such preferred stock being held by a Person other than the Company or any of its Restricted Subsidiaries; and

 

(ii)                                  any sale or other transfer of any such preferred stock to a Person that is neither the Company nor any of its Restricted Subsidiaries,

 

will be deemed, in each case, to constitute an issuance of such preferred stock by such Restricted Subsidiary that was not permitted by this paragraph (g);

 

(i)                                     the incurrence by the Company or any Restricted Subsidiary of Hedging Obligations in the ordinary course of business and not for speculative purposes;

 

(j)                                    the Guarantee by the Company or any of its Restricted Subsidiaries of Indebtedness of the Company or any of its Restricted Subsidiaries to the extent that the guaranteed Indebtedness was permitted to be incurred by another provision of this Clause 3.2; provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the Facility and any guarantee thereof, then the Guarantee must be subordinated or pari passu, as applicable, to the same extent as the Indebtedness guaranteed;

 

(k)                                 the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness in respect of workers’ compensation claims, self-insurance obligations, bankers’ acceptances, customs, VAT and other tax guarantees, performance and surety bonds in the ordinary course of business;

 

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(l)                                     the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness arising from the honouring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days;

 

(m)                             Indebtedness of any Person outstanding on the date on which such Person becomes a Restricted Subsidiary of the Company or is merged, consolidated, amalgamated or otherwise combined with (including pursuant to any acquisition of assets and assumption of related liabilities) the Company or any of its Restricted Subsidiaries (other than Indebtedness incurred to provide all or any portion of the funds used to consummate the transaction or series of related transactions pursuant to which such Person became a Restricted Subsidiary of the Company or was otherwise acquired by the Company or any of its Restricted Subsidiaries); provided, however, with respect to this paragraph (1), that at the time of the acquisition or other transaction pursuant to which such Indebtedness was deemed to be incurred the Company would have been able to incur £1.00 of additional Indebtedness pursuant to paragraph (a) of Clause 3.1 after giving pro forma effect to the incurrence of such Indebtedness pursuant to this paragraph (l);

 

(n)                                 Indebtedness arising from agreements of the Company or any of its Restricted Subsidiaries providing for customary indemnification, obligations in respect of earnouts or other adjustments of purchase price or, in each case, similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business or assets or Person or any Equity Interests of a Subsidiary, provided that the maximum liability of the Company and its Restricted Subsidiaries in respect of all such Indebtedness shall at no time exceed the gross proceeds, including the Fair Market Value of non-cash proceeds (measured at the time received and without giving effect to any subsequent changes in value), actually received by the Company and its Restricted Subsidiaries in connection with such disposition;

 

(o)                                 the incurrence by New Holdco, Sponsorship Newco or any Restricted Subsidiary that is a Subsidiary of New Holdco of Intra-Group Liabilities (as defined in the Intercreditor Agreement) or Subordinated Liabilities (as defined in the Intercreditor Agreement); and

 

(p)                                 the incurrence by the Company and its Restricted Subsidiaries of additional Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time outstanding not to exceed £50.0 million;

 

provided, however, that New Holdco or any Restricted Subsidiary that is a Subsidiary of New Holdco (including, without limitation, Sponsorship Newco) shall not be permitted to incur Indebtedness pursuant to paragraphs (d), (e) and (p) of this Clause 3.2.

 

3.3                               No Obligor will incur any Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment to any other Indebtedness of the Obligors unless such Indebtedness is also contractually subordinated in right of payment to the Facility and any guarantee thereof on substantially identical terms; provided, however, that no Indebtedness will be deemed to be contractually

 

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subordinated in right of payment to any other Indebtedness of the Obligors solely by virtue of being unsecured or by virtue of being secured on a junior priority basis.

 

3.4                               For purposes of determining compliance with this Clause 3, in the event that an item of Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in paragraphs (a) through (p) of Clause 3.2 above, or is entitled to be incurred pursuant to paragraph (a) of Clause 3.1, the Company will be permitted to classify such item of Indebtedness on the date of its incurrence or later reclassify all or a portion of such item of Indebtedness, in any manner that complies with this Clause 3.  The accrual of interest or preferred stock dividends, the accretion or amortisation of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a change in accounting principles, and the payment of dividends on preferred stock or Disqualified Stock in the form of additional shares of the same class of preferred stock or Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock or Disqualified Stock for purposes of this Clause 3; provided, in each such case, that the amount of any such accrual, accretion or payment is included in Consolidated Interest Expense of the Company as accrued.  Notwithstanding any other provision of this Clause 3, the maximum amount of Indebtedness that the Company or any of its Restricted Subsidiaries may incur pursuant to this Clause 3 shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values.

 

3.5                               The amount of any Indebtedness outstanding as of any date will be:

 

(a)                                 the accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount;

 

(b)                                 the principal amount of the Indebtedness, in the case of any other Indebtedness;

 

(c)                                  in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of:

 

(i)                                     the Fair Market Value of such assets at the date of determination; and

 

(ii)                                  the amount of the Indebtedness of the other Person; and

 

(d)                                 For purposes of determining compliance with any sterling-denominated restriction on the incurrence of Indebtedness, the Sterling Equivalent of the principal amount of Indebtedness denominated in another currency will be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term Indebtedness, or first committed, in the case of Indebtedness incurred under a revolving credit facility; provided that (i) if such Indebtedness is incurred to refinance other Indebtedness denominated in a currency other than sterling, and such refinancing would cause the applicable sterling-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such sterling-denominated restriction will be deemed not to have been exceeded so long as the principal amount of such Permitted Refinancing Indebtedness does not exceed the principal amount of such

 

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Indebtedness being refinanced; and (ii) if and for so long as any such Indebtedness is subject to an agreement intended to protect against fluctuations in currency exchange rates with respect to the currency in which such Indebtedness is denominated covering principal and interest on such Indebtedness, the amount of such Indebtedness, if denominated in sterling, will be the amount of the principal payment required to be made under such currency agreement and, otherwise, the Sterling Equivalent of such amount plus the Sterling Equivalent of any premium which is at such time due and payable but is not covered by such currency agreement.

 

4.                                      LIENS

 

The Company will not and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind securing Indebtedness upon any of their property or assets, now owned or hereafter acquired, except (i) in the case of any property or asset that does not constitute Collateral, Permitted Liens and (ii) in the case of any property or asset that constitutes Collateral, Permitted Collateral Liens.

 

5.                                      LIMITATION ON SALE AND LEASEBACK TRANSACTIONS

 

5.1                               The Company will not, and will not permit any of its Restricted Subsidiaries to, enter into any sale and leaseback transaction with a Person other than the Company or a Restricted Subsidiary of the Company; provided that any Obligor may enter into a sale and leaseback transaction if:

 

(a)                                 such Obligor could have (i) incurred Indebtedness in an amount equal to the Attributable Debt relating to such sale and leaseback transaction under the Fixed Charge Coverage Ratio test in paragraph (a) of Clause 3.1 (Incurrence of Indebtedness and Issuance of Preferred Stock) above and (ii) incurred a Lien to secure such Indebtedness pursuant to Clause 4 (Liens);

 

(b)                                 the gross cash proceeds of that sale and leaseback transaction are at least equal to the Fair Market Value, as determined in good faith by the Board of Directors of the Company of the property that is the subject of that sale and leaseback transaction; and

 

(c)                                  the transfer of assets in that sale and leaseback transaction is permitted by, and the Company applies the proceeds of such transaction in compliance with Clause 1 (Asset Sales).

 

6.                                      DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING RESTRICTED SUBSIDIARIES

 

6.1                               The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

 

(a)                                 pay dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries, or with respect to any other

 

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interest or participation in, or measured by, its profits, or pay any Indebtedness owed to the Company or any of its Restricted Subsidiaries;

 

(b)                                 make loans or advances to the Company or any of its Restricted Subsidiaries; or

 

(c)                                  sell, lease or transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries.

 

6.2                               The restrictions in Clause 6.1 above will not apply to encumbrances or restrictions existing under or by reason of:

 

(a)                                 agreements governing Existing Indebtedness and the Facility or any other agreement as in effect at or entered into on the Second Amendment Effective Date and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements on the Second Amendment Effective Date;

 

(b)                                 the Existing Note Indenture, the Existing Notes and the Existing Note Guarantees, the RCF Facilities, the Notes, the Note Guarantee, the Existing RCF Facilities Agreement, the Intercreditor Agreement and the Transaction Security Documents;

 

(c)                                  agreements governing other Indebtedness permitted to be incurred under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock) and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the restrictions therein are not materially more restrictive, taken as a whole, than those contained in the Finance Documents;

 

(d)                                 applicable law, rule, regulation or order;

 

(e)                                  any agreement or instrument of or Capital Stock of a Person acquired by the Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such agreement or instrument was entered into or incurred in connection with or in contemplation of such acquisition) and any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of any such agreement or instrument, provided that the amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are (i) no more restrictive or (ii) not materially less favourable as determined in good faith by the Company, than the dividend and other payment restrictions contained in such instrument at the time of such acquisition, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Agreement to be incurred;

 

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(f)                                   customary non-assignment provisions in contracts, leases and licenses entered into in the ordinary course of business;

 

(g)                                  purchase money obligations for property acquired in the ordinary course of business and Capital Lease Obligations that impose restrictions on the property purchased or leased of the nature described in paragraph (c) of Clause 5 (Limitation on Sale and Leaseback Transactions);

 

(h)                                 any agreement for the sale or other disposition of the Capital Stock or all or substantially all of the property and assets of a Restricted Subsidiary of the Company that restricts distributions by that Restricted Subsidiary pending its sale or other disposition;

 

(i)                                     Permitted Refinancing Indebtedness; provided that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced;

 

(j)                                    Liens permitted to be incurred under Clause 4 (Liens) that limit the right of the debtor to dispose of the assets subject to such Liens;

 

(k)                                 provisions limiting the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements (including agreements entered into in connection with a Restricted Investment) entered into with the approval of the Company’s Board of Directors, which limitation is applicable only to the assets that are the subject of such agreements;

 

(l)                                     restrictions on cash or other deposits or net worth imposed by customers or suppliers or required by insurance, surety or bonding companies, in each case, under contracts entered into in the ordinary course of business;

 

(m)                             Hedging Obligations entered into from time to time;

 

(n)                                 any mortgage financing or mortgage refinancing that imposes restrictions on the real property (including any heritage building rights) securing such Indebtedness; and

 

(o)                                 agreements governing Indebtedness incurred pursuant to paragraphs (e) and (p) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) by a Restricted Subsidiary of the Company that is an Excluded Subsidiary under paragraph (d) of the definition thereof, provided that any encumbrance or restriction in any such agreement is not applicable to any Person, or the properties or assets of any other Person, other than such Restricted Subsidiary or its property or assets.

 

7.                                      MERGER, CONSOLIDATION, ETC.

 

7.1                               The Company and Red Football Junior Limited, will not, directly or indirectly: (x) consolidate or merge with or into another Person, whether or not the Company is the surviving corporation, or (y) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company and its Restricted

 

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Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

 

(a)                                 either:

 

(i)                                     the Company, Red Football Junior Limited or, as the case may be, MUL is the surviving corporation; or

 

(ii)                                  the Person formed by or surviving any such consolidation or merger (if other than the Company, Red Football Junior Limited or MUL) or to which such sale, assignment, transfer, conveyance or other disposition has been made is an entity organized or existing under the laws of any Permitted Jurisdiction;

 

(b)                                 the Person formed by or surviving any such consolidation or merger (if other than the Company, Red Football Junior Limited or MUL) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company, Red Football Junior Limited or, as the case may be, MUL under the Finance Documents to which the Company, Red Football Junior Limited or MUL (as applicable) is a party pursuant to agreements reasonably satisfactory to the Agent (acting on the instructions of the Majority Lenders);

 

(c)                                  immediately after such transaction, no Default or Event of Default exists;

 

(d)                                 the Company, Red Football Junior Limited or MUL (as applicable) or the Person formed by or surviving any such consolidation or merger (if other than the Company, Red Football Junior Limited or, as the case may be, MUL), or to which such sale, assignment, transfer, conveyance or other disposition has been made, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable four-quarter period, (i) would be permitted to incur at least £1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in paragraph (a) of Clause 3.1 (Incurrence of Indebtedness and Issuance of Preferred Stock) or (ii) the Fixed Charge Coverage Ratio would not be less than it was prior to such transaction; and

 

(e)                                  the Company delivers to the Agent an Officers’ Certificate and opinion of counsel, in each case, stating that such consolidation, merger or transfer and assumption of obligations under the Finance Documents comply with this Clause 7.1.

 

7.2                               Except as otherwise provided in this Clause 7.2, no Obligor (other than an Obligor whose Guarantee is to be released in accordance with this Agreement) may sell or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into (whether or not such Obligor is the surviving Person) another Person, other than a sale or disposal to, or consolidation or merger with or into, the Company or another Obligor unless:

 

(i)                                     either (x) such Obligor is the surviving Person, or (y) the Person acquiring the property in any such sale or disposition or the Person formed by or surviving

 

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any such consolidation or merger (if other than such Obligor) (A) is organized under the laws of a Permitted Jurisdiction and (B) assumes all the obligations of that Obligor under the Finance Documents to which such Obligor is a party pursuant to agreements reasonably satisfactory to the Agent (acting on the instructions of the Majority Lenders); provided that, in either case, immediately after giving effect to that transaction, no Default or Event of Default exists; or

 

(ii)                                  in the case only of an Obligor that is not a Borrower, the Company or Red Football Junior Limited, the Net Proceeds of such sale are applied in accordance with the applicable provisions of the Finance Documents.

 

7.3                               In addition, no Obligor will, directly or indirectly, lease all or substantially all of the properties and assets of it and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to any other Person.

 

7.4                               Notwithstanding the foregoing, neither this Clause 7 nor Clause 11.2 will restrict the sale or other disposition of all or substantially all of the assets or merger or consolidation of (w) the Company or any Obligor with, into or to any Obligor, (x) any non-Obligor Restricted Subsidiary with, into or to the Company or any Obligor or with, into or to any non-Obligor Restricted Subsidiary, (y) any Permitted Reorganisation and (z) paragraph (d) of Clause 7.1 will not apply to any sale or other disposition of all or substantially all of the assets or merger or consolidation of the Company or any Obligor with, into or to an Affiliate solely for the purpose of reincorporating the Company or such Obligor in a Permitted Jurisdiction for tax reasons, provided that any such transaction is consummated in accordance with the terms hereunder.

 

8.                                      TRANSACTIONS WITH AFFILIATES

 

8.1                               The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, make any payment to or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of the Company (each, an “Affiliate Transaction”), unless:

 

(a)                                 the Affiliate Transaction is on terms that are no less favourable to the Company or the relevant Restricted Subsidiary than those that would have been obtained in a comparable arm’s length transaction by the Company or such Restricted Subsidiary with a Person who is not an Affiliate of the Company or any of its Restricted Subsidiaries; and

 

(b)                                 the Company delivers to the Agent:

 

(i)                                     with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of £10.0 million, a resolution of the Board of Directors of the Company set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with this Clause 8 and that such Affiliate Transaction has been approved by a majority of the disinterested

 

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members of the Board of Directors of the Company or, if there are no disinterested directors in respect of such Affiliate Transaction, an opinion as to the fairness to the Company or such Subsidiary of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of international standing; and

 

(ii)                                  with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of £20.0 million, an opinion as to the fairness to the Company or such Subsidiary of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of international standing.

 

8.2                               Provided, however, that, the following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the foregoing provisions of this Clause 8:

 

(a)                                 any employment agreement, collective bargaining agreement, consultant agreement, employee benefit arrangements with any employee, consultant, officer or director of the Company or any of its Restricted Subsidiaries, including under any stock option, stock appreciation rights, stock incentive or similar plans, entered into in the ordinary course of business;

 

(b)                                 transactions between or among the Company and/or its Restricted Subsidiaries;

 

(c)                                  transactions with a Person (other than an Unrestricted Subsidiary of the Company) that is an Affiliate of the Company solely because the Company owns, directly or through a Restricted Subsidiary, an Equity Interest in, or controls, such Person;

 

(d)                                 payment of reasonable and customary fees and reimbursements of expenses (pursuant to indemnity arrangements or otherwise) of officers, directors, employees or consultants of the Company or any of its Restricted Subsidiaries;

 

(e)                                  any issuance of Equity Interests (other than Disqualified Stock) or Subordinated Shareholder Funding of the Company to Affiliates of the Company;

 

(f)                                   Restricted Payments that do not violate the provisions of Clause 2 (Restricted Payments);

 

(g)                                  Permitted Investments (other than Permitted Investments described in paragraphs (c), (m) and (o) of the definition thereof);

 

(h)                                 transactions pursuant to, or contemplated by, any agreement in effect on the Second Amendment Effective Date and transactions pursuant to any amendment, modification or extension to such agreement, so long as such amendment, modification or extension, taken as a whole, is not materially

 

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more disadvantageous to the Lenders than the original agreement as in effect on the Second Amendment Effective Date;

 

(i)                                     transactions with customers, clients, suppliers, or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of the Finance Documents that are fair to the Company or its Restricted Subsidiaries, in the reasonable determination of the members of the Board of Directors of the Company or the senior management thereof, or are on terms at least as favourable as might reasonably have been obtained at such time from an unaffiliated Person;

 

(j)                                    any payments or other transactions pursuant to a tax sharing agreement or arrangement relating to taxes between the Company and any other Person or a Restricted Subsidiary of the Company and any other Person with which the Company or any of its Restricted Subsidiaries files a consolidated tax return or with which the Company or any of its Restricted Subsidiaries is part of a group for tax purposes or any tax advantageous group contribution made pursuant to applicable legislation; provided, however, that any such tax sharing or arrangement and payment does not permit or require payments in excess of the amounts of tax that would be payable by the Company and its Restricted Subsidiaries on a stand-alone basis; and

 

(k)                                 Permitted Reorganisations.

 

9.                                      LIMITATION ON ISSUANCES OF GUARANTEES OF INDEBTEDNESS

 

9.1                               The Company will not cause or permit any of its Restricted Subsidiaries which are not Obligors, directly or indirectly, to guarantee, assume or in any manner become liable, whether as a borrower, an additional or co-borrower or otherwise, for or in respect of any other Indebtedness of the Company or any of the Company’s other Restricted Subsidiaries unless such specified Restricted Subsidiary shall simultaneously accede to this Agreement as an Additional Guarantor.

 

9.2                               Notwithstanding the foregoing, without becoming a Guarantor pursuant to the provisions of this Clause 9, New Holdco or any Restricted Subsidiary that is a New Holdco Subsidiary (including without limitation, Sponsorship Newco) may directly or indirectly, guarantee, assume or in any manner become liable, whether as borrower, an additional or co-borrower or otherwise, for or in respect any Indebtedness of New Holdco or any Restricted Subsidiary that is a New Holdco Subsidiary (including without limitation, Sponsorship Newco) permitted to be incurred by New Holdco or any Restricted Subsidiary that is a New Holdco Subsidiary (including without limitation, Sponsorship Newco) under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock).

 

9.3                               Such Additional Guarantor will automatically and unconditionally be released under the same conditions and circumstances that the guarantee of other Indebtedness will be released, so long as no Default or Event of Default is existing or would arise as a result and no other Indebtedness is at that time guaranteed by the relevant Additional Guarantor that would have resulted in the requirement that such Additional Guarantor become an Additional Guarantor pursuant to this Clause 9.

 

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10.                               DESIGNATION OF RESTRICTED AND UNRESTRICTED SUBSIDIARIES

 

10.1                        The Board of Directors of the Company may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would not cause a Default.  If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as an Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Clause 2 (Restricted Payments) or under one or more paragraphs of the definition of Permitted Investments, as determined by the Company.  That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.  The Board of Directors of the Company may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a Default.

 

10.2                        Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Agent by filing with the Agent a certified copy of a resolution of the Board of Directors giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions and was permitted under Clause 2 (Restricted Payments).  If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of the Finance Documents and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred as of such date under Clause 3 (Incurrence of Indebtedness and issuance of preferred stock) the Company will be in default of such covenant.  The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be permitted if (i) such Indebtedness is permitted under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock) calculated on a pro forma basis as if such designation had occurred at the beginning of the applicable reference period; and (ii) no Default or Event of Default would be in existence following such designation.

 

11.                               LIMITATION ON ISSUER ACTIVITIES

 

11.1                        The Issuer will not create, incur, assume or suffer to exist any Lien over any of its property or assets, or any proceeds therefrom, to secure Indebtedness, except for Liens to secure the Existing Notes, the Existing RCF Facilities Agreement, the Notes, the RCF Facilities, the Facility or other Indebtedness permitted to be incurred under the Finance Documents to the extent Liens securing such Indebtedness are permitted to be incurred under the Finance Documents.

 

11.2                        The Issuer will not (i) merge, consolidate, amalgamate or otherwise combine with or into another Person (whether or not the Issuer is the surviving corporation), or (ii) sell, assign, transfer, lease, convey or otherwise dispose of any material property or assets to any Person in one or more related transactions, other than, (A) in the case of clause

 

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(i) or clause (ii), in accordance with Section 7 hereof, or (B) solely in the case of clause (ii), in connection with the incurrence of a Permitted Collateral Lien.

 

11.3                        Until the date on which all Commitments under (and as defined in) the Agreement have been cancelled and all amounts outstanding under the Facility have been fully repaid, none of the Company nor any of its Restricted Subsidiaries will commence or take any action or facilitate a winding-up, liquidation or other analogous proceeding in respect of the Issuer.

 

12.                               LIMITATION ON HOLDING COMPANY ACTIVITIES

 

12.1                        The Company will not, at any time, own any assets or property other than cash and Cash Equivalents, the Carrington Premises, Capital Stock in Red Football Junior Limited and MUL, assets that will be used to make a Restricted Payment (other than a Restricted Investment) permitted by Clause 2 (Restricted Payments) promptly following receipt thereof by the Company and other assets that are de minimis in nature.

 

Red Football Junior Limited will not, at any time, own any assets or property other than Capital Stock in MUL and other assets that are de minimis in nature.

 

12.2                        In addition, neither the Company nor Red Football Junior Limited will trade, undertake any activity, carry on any business, own any assets, enter into any arrangement or incur any liability other than:

 

(a)                                 the ownership of shares of MUL and, in the case of the Company, Red Football Junior Limited or any other direct Subsidiary of the Company and/or Red Football Junior Limited (an “Additional Subsidiary”) that is a member of the Group, in each case to the extent such shares are subject to Transaction Security and provided that any Additional Subsidiary is the only member of the Group (other than Red Football Junior Limited) in which the Company directly owns shares;

 

(b)                                 the provision of administrative services (excluding treasury services) to its Subsidiaries of a type customarily provided by a holding company to its Subsidiaries and the receipt of any amounts related thereto to the extent expressly permitted under the Intercreditor Agreement;

 

(c)                                  incurring Indebtedness permitted under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock) (including activities reasonably incidental thereto, including performance of the terms and conditions of such Indebtedness, to the extent such activities are otherwise permissible under the Finance Documents);

 

(d)                                 rights and obligations arising under the Note Documents, the Intercreditor Agreement (or any additional intercreditor agreement entered into pursuant to the terms of the Intercreditor Agreement), the Transaction Security Documents, the RCF Facilities, the Existing Note Documents, the Existing RCF Facilities Agreement, any Finance Document or any other agreement existing on the Second Amendment Effective Date to which it is a party

 

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relating to the issue and sale of the Notes issued on or the application of the proceeds therefrom;

 

(e)                                  directly related or reasonably incidental to the establishment and/or maintenance of its corporate existence; or

 

(f)                                   the holding of bank accounts and the making of loans (including activities reasonably incidental thereto) permitted by the Finance Documents, and the entry into any agreement in relation thereto.

 

13.                               GOVERNING LAW

 

13.1                        This Schedule is governed by the laws of the State of New York.

 

13.2                        This Schedule constitutes an integral part of the Facility Agreement and the obligations under the Facility Agreement constitute an integral part of this Schedule.

 

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Definitions in this Schedule:

 

“Acquired Debt” means, with respect to any specified Person:

 

(a)                                 Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Restricted Subsidiary of such specified Person, whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary; and

 

(b)                                 Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

 

“Additional Amounts” has the meaning given to such term in the Note Purchase Agreement (in its form at the Second Amendment Effective Date).

 

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 10 per cent. or more of any class of voting or equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10 per cent. or more of any class of voting or equity interests.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

 

“Affiliate Transaction” is defined in Clause 8 (Transactions with Affiliates).

 

“Agent” means the “Agent” under and as defined in the Facility Agreement.

 

“Asset Sale” means:

 

(a)                                 the sale, lease, conveyance or other disposition of any assets or rights by the Company or any of its Restricted Subsidiaries; provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by Clause 14 (Mandatory Prepayment) of the Facility Agreement and/or Clause 7 (Merger, Consolidation, Etc.) of this Schedule and not by the provisions of Clause 1 (Asset Sales); and

 

(b)                                 the issuance of Equity Interests by any Restricted Subsidiary of the Company or the sale by the Company or any of its Restricted Subsidiaries of Equity Interests in any of the Company’s Subsidiaries, in each case other than directors’ qualifying shares.

 

Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

 

(a)                                 any single transaction or series of related transactions that involves assets having a Fair Market Value of less than £1.0 million;

 

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(b)                                 a transfer of assets between or among the Company and its Restricted Subsidiaries;

 

(c)                                  an issuance of Equity Interests by a Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary of the Company made in accordance with Clause 1.3 (Asset Sales);

 

(d)                                 the sale, lease, assignment or other transfer of products, services or accounts receivable in the ordinary course of business and any sale or other disposition of damaged, worn-out or obsolete assets in the ordinary course of business (including the abandonment or other disposition of intellectual property that is, in the reasonable judgment of the Company, no longer economically practicable to maintain or useful in the conduct of the business of the Company and its Restricted Subsidiaries taken as whole);

 

(e)                                  licenses and sublicenses by the Company or any of its Restricted Subsidiaries of software in the ordinary course of business;

 

(f)                                   any surrender or waiver of contract rights or settlement, release, recovery on or surrender of contract, tort or other claims in the ordinary course of business;

 

(g)                                  the granting of Liens not prohibited under Clause 4 (Liens);

 

(h)                                 the sale or other disposition of cash or Cash Equivalents;

 

(i)                                     a Restricted Payment that does not violate Clause 2 (Restricted Payments) or a Permitted Investment;

 

(j)                                    the disposition of receivables in connection with the compromise, settlement or collection thereof in the ordinary course of business or in bankruptcy or similar proceedings and exclusive of factoring or similar arrangements;

 

(k)                                 the sale, lease, assignment, disposal or other transfer of player registrations;

 

(l)                                     any licence or other right of occupation that allows the beneficiary to attend one or more sporting events (including without limitation association football matches) or other events in the ordinary course of business;

 

(m)                             any licence or other right of use of any intellectual property or other right if entered into in connection with the commercial exploitation of such intellectual property or other rights in the ordinary course of business;

 

(n)                                 the monetisation of any contract or arrangement related to (l) and (m) above;

 

(o)                                 the foreclosure, condemnation or any similar action with respect to any property or other assets or a surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind;

 

(p)                                 the sale of all or substantially all of the assets or merger or consolidation of the Issuer with or into an Affiliate solely for purposes of reincorporating the Issuer in a Permitted Jurisdiction for tax reasons; provided any such transaction is

 

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consummated in accordance with Clause 7.4 (Merger, Consolidation, Etc.); and

 

(q)                                 the transfer of employees and assets in accordance with the definition of “Permitted Reorganisation”.

 

“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended.  Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with IFRS; provided, however, that if such sale and leaseback transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation” below.

 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the U.S. Exchange Act, as in effect on the Second Amendment Effective Date, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the U.S. Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.  The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.

 

“Board of Directors” means:

 

(a)                                 with respect to a corporation, the board of directors (or analogous governing body) of the corporation or any committee thereof duly authorised to act on behalf of such board;

 

(b)                                 with respect to a partnership, the board of directors of the general partner of the partnership;

 

(c)                                  with respect to a limited liability company, the managing member or members (or analogous governing body) or any controlling committee of managing members thereof; and

 

(d)                                 with respect to any other Person, the board or committee of such Person serving a similar function.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or London, England are required or authorized to be closed.

 

“Capital Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalised on a balance sheet (excluding the footnotes thereto) prepared in accordance with IFRS as in effect on the Second Amendment Effective Date, and the Stated Maturity thereof shall be the date of the last payment of rent or any other

 

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amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty.

 

“Capital Stock” means:

 

(a)                                 in the case of a corporation, corporate stock;

 

(b)                                 in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(c)                                  in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and

 

(d)                                 any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

 

“Carrington Premises” means the property known as the Trafford Training Centre and Academy at Carrington Manchester (title number GM785864), including any real property and fixtures related thereto but not any personal property.

 

“Cash Equivalents” means:

 

(a)                                 direct obligations (or certificates representing an interest in such obligations) issued by, or unconditionally guaranteed by, the government of a member state of a Permitted Jurisdiction, the payment of which is backed by the full faith and credit of such Permitted Jurisdiction, and which are not callable or redeemable at the Company’s option;

 

(b)                                 overnight bank deposits, time deposit accounts, certificates of deposit, banker’s acceptances and money market deposits with maturities (and similar instruments) of 12 months or less from the date of acquisition issued by a bank or trust company which is organised under, or authorised to operate as a bank or trust company under, the laws of a Permitted Jurisdiction; provided that such bank or trust company has capital, surplus and undivided profits aggregating in excess of £500.0 million (or the foreign currency equivalent thereof as of the date of such investment) and whose long-term debt is rated “A-3” or higher by Moody’s Investor Services Limited or “A–” or higher by Standard & Poor’s Rating Services or the equivalent rating category of another internationally recognised rating agency;

 

(c)                                  repurchase obligations with a term of not more than 90 days for underlying securities of the types described in paragraphs (a) and (b) above entered into with any financial institution meeting the qualifications specified in paragraph (b) above;

 

(d)                                 commercial paper rated at the time of acquisition thereof at least P-1 by Moody’s Investor Services Limited or at least A-1 by Standard & Poor’s

 

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Rating Services and, in each case, maturing within one year after the date of acquisition; and

 

(e)                                  money market funds at least 95 per cent. of the assets of which constitute Cash Equivalents of the kinds described in paragraph (a) to (d) of this definition.

 

“Change of Control” means the occurrence of any of the following:

 

(a)                                the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries taken as a whole to any Person (including any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)) other than a Principal or a Related Party of a Principal;

 

(b)                                the adoption of a plan relating to the liquidation or dissolution of the Company;

 

(c)                                 the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any “person” as defined above), other than a Principal and/or any of its Related Parties, becomes the Beneficial Owner, directly or indirectly, of more than 50 per cent. of the Voting Stock of the Company, measured by voting power rather than number of shares;

 

(d)                                the first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors; provided, however, that this paragraph (d) shall not apply to members of the Board of Directors nominated or re-elected by employees pursuant to co-determination and similar statutes providing for employee representatives on supervisory or similar boards;

 

(e)                                 the first day on which (i) the Company fails to own, directly or indirectly, 100 per cent. of the Capital Stock of MUL or (ii) MUL fails to own, directly or indirectly, 100 per cent. of the Capital Stock of the Issuer;

 

(f)                                  Manchester United plc (alone or together with one or more Affiliates controlled by it) ceases to own (directly or indirectly) a larger percentage than does any other Person of the share capital in and shareholder loans to, the Company; or

 

(g)                                 The Original Investors cease to have the power to control more than one-half of the maximum number of votes that might be cast at a general meeting of the Company or appoint or remove a majority of directors of the Company or give directions with respect to operating and financial policies of Parent.

 

“Collateral” means any and all assets from time to time in which a security interest has been or will be granted pursuant to any Transaction Security Document to secure the obligations of the Issuer and the Obligors under the Finance Documents.

 

“Company” means Red Football Limited (registration number 05370076).

 

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“Consolidated EBITDA” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for such period plus, without duplication:

 

(a)                                 all gains (losses) realised in connection with any Asset Sale or the disposition of securities or the early extinguishment of Indebtedness, together with any related provision for taxes on any such gain; plus

 

(b)                                 provision for taxes based on income or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus

 

(c)                                  the Consolidated Interest Expense of such Person and its Restricted Subsidiaries for such period, to the extent that such Consolidated Interest Expense were deducted in computing such Consolidated Net Income; plus

 

(d)                                 depreciation, amortisation (including amortisation of intangibles but excluding amortisation of prepaid cash expenses that were paid in a prior period) and other non-cash charges and expenses (excluding any such non-cash charge or expense to the extent that it represents an accrual of or reserve for cash charges or expenses in any future period or amortisation of a prepaid cash charge or expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation, amortisation and other non-cash charges or expenses were deducted in computing such Consolidated Net Income; plus

 

(e)                                  all deferred financing costs written off and premiums paid in connection with any early extinguishment of Indebtedness to the extent such costs and premiums were deducted in computing such Consolidated Net Income; plus

 

(f)                                   any foreign currency translation gains or losses (including gains or losses related to currency remeasurements of Indebtedness) of such Person and its Restricted Subsidiaries for such period, to the extent that such gains or losses were taken into account in computing such Consolidated Net Income; plus

 

(g)                                  the amount of any minority interest expense consisting of subsidiary income attributable to minority equity interests of third parties in any non-wholly owned Restricted Subsidiary in such period or any prior period, except to the extent of dividends declared or paid on, or other cash payments in respect of, Equity Interests held by such parties; minus

 

(h)                                 non-cash items increasing such Consolidated Net Income for such period, other than the accrual of revenue or the reversal of a reserve for cash charges in a future period in the ordinary course of business,

 

in each case, on a consolidated basis and determined in accordance with IFRS.

 

“Consolidated Interest Expense” means, with respect to any specified Person for any period, the sum, without duplication, of:

 

(a)                                 the consolidated interest expense of such Person and its Subsidiaries which are Restricted Subsidiaries for such period, whether paid or accrued, including,

 

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without limitation, amortisation of debt issuance costs and original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to Hedging Obligations in respect of interest rates (excluding any non-cash interest expense on Subordinated Shareholder Funding); plus

 

(b)                                 the consolidated interest expense of such Person and its Subsidiaries which are Restricted Subsidiaries that was capitalised during such period; plus

 

(c)                                  any interest on Indebtedness of another Person that is guaranteed by such Person or one of its Subsidiaries which are Restricted Subsidiaries to the extent paid or secured by a Lien on assets of such Person or one of its Subsidiaries which are Restricted Subsidiaries to the extent such Lien is called upon; plus

 

(d)                                 the product of (i) all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of such Person or any of its Subsidiaries which are Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Company (other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company, times (ii) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate of such Person, expressed as a decimal, in each case, determined on a consolidated basis in accordance with IFRS.

 

“Consolidated Net Income” means, with respect to any specified Person for any period, the aggregate of the net income (loss) of such Person and its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with IFRS; provided that:

 

(a)                                 the net income (loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted Subsidiary of such Person and the net income (if negative) of any Person that is not a Restricted Subsidiary will be included only to the extent that such loss has been funded with cash by the specified Person or a Restricted Subsidiary of such Person;

 

(b)                                 solely for the purpose of determining the amount available for Restricted Payments under paragraph (iii)(A) of Clause 2.1 (Restricted Payments) any net income (loss) of any Restricted Subsidiary will be excluded if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the Company by operation of the terms of such Restricted Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute or governmental rule or regulation applicable to such Restricted Subsidiary or its shareholders; except that the Company’s equity in

 

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the net income of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the aggregate amount of cash or Cash Equivalents actually distributed or that could have been distributed by such Restricted Subsidiary during such period to the Company or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend to another Restricted Subsidiary, to the limitation contained in this clause);

 

(c)                                  the net income (loss) arising from the sale, assignment, disposal or other transfer of player registrations will be excluded;

 

(d)                                 any extraordinary or exceptional gain, loss or charge or any profit or loss on Asset Sales, asset impairments or early extinguishment of Indebtedness, or any charges or reserves in respect of any restructuring, redundancy, integration or severance or any expenses, charges, reserves or other costs related to acquisitions will be excluded;

 

(e)                                  non-cash tax charges that are set off by group relief by a Parent Entity will be excluded;

 

(f)                                   the cumulative effect of a change in accounting principles will be excluded; and

 

(g)                                  any intangible asset impairment charge and amortisation of player registrations and amortisation of goodwill will be excluded.

 

“Consolidated Senior Secured Leverage” means, as of any date of determination, the sum of the total amount of Senior Secured Indebtedness of the Company and its Restricted Subsidiaries on a consolidated basis.

 

“Consolidated Senior Secured Leverage Ratio” means as of any date of determination, the ratio of (i) the Consolidated Senior Secured Leverage of the Company on such date to (ii) the Consolidated EBITDA of the Company for the most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred.  In the event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems Disqualified Stock or preferred stock subsequent to the commencement of the period for which the Consolidated Senior Secured Leverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Consolidated Senior Secured Leverage Ratio is made (the “ CSSLR Calculation Date”), then the Consolidated Senior Secured Leverage Ratio will be calculated giving pro forma effect (as determined in good faith by a Senior Financial Officer of the Company) to such incurrence, assumption, guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of Disqualified Stock or preferred stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference period.

 

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For purposes of calculating the Consolidated EBITDA for such period:

 

(a)                                 acquisitions that have been made by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Subsidiaries which are Restricted Subsidiaries acquired by the specified Person or any of its Subsidiaries which are Restricted Subsidiaries, and including all related financing transactions and including increases in ownership of Subsidiaries which are Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the CSSLR Calculation Date, or that are to be made on the CSSLR Calculation Date, will be given pro forma effect (as determined in good faith by a Senior Financial Officer of the Company and may include anticipated expense and cost reduction synergies) as if they had occurred on the first day of the four-quarter reference period;

 

(b)                                 the Consolidated EBITDA attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of prior to the CSSLR Calculation Date, will be excluded;

 

(c)                                  any Person that is a Restricted Subsidiary on the CSSLR Calculation Date will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period; and

 

(d)                                 any Person that is not a Restricted Subsidiary on the CSSLR Calculation Date will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period.

 

“continuing” has the meaning given to such term in the Facility Agreement.

 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Company who:

 

(a)                                 was a member of such Board of Directors on the Second Amendment Effective Date; or

 

(b)                                 was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election.

 

“Default” has the meaning given to such term in the Facility Agreement.

 

“Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature.  Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require an Obligor to repurchase such Capital Stock upon the occurrence of a Change

 

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of Control or an Asset Sale will not constitute Disqualified Stock if the terms of such Capital Stock provide that the relevant Obligor may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Clause 2 (Restricted Payments).  The amount of Disqualified Stock deemed to be outstanding at any time for purposes of the Finance Documents will be the maximum amount that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.

 

“Equity Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock).

 

“Event of Default” has the meaning given to such term in the Facility Agreement.

 

“Excess Proceeds” has the meaning given to such term in Clause 1.4.

 

“Excess Proceeds Prepayment Offer” has the meaning given to such term in Clause 1.4 (Asset Sales).

 

“Excluded Contributions” means the net cash proceeds received by the Company after the Second Amendment Effective Date from (a) contributions to its common equity capital or (b) the sale (other than to a Subsidiary) of Equity Interests (other than Disqualified Stock), in each case designated as Excluded Contributions pursuant to an Officers’ Certificate (which shall be designated no later than the date on which such Excluded Contribution has been received by the Company), the cash proceeds of which are excluded from the calculation set forth in paragraph (iii)(B) of Clause 2.1 (Restricted Payment).

 

“Existing Hedging Agreements” means the interest rate transactions entered into between the Company and Bank of America, N.A, on 25 October 2013, in each case documented under and subject to the terms of a 2002 ISDA Master Agreement (as published by the International Swaps and Derivatives Association, Inc.) and Schedule thereto dated as of 20 May 2013 (as may be amended or supplemented from time to time).

 

“Existing Indebtedness” means all Indebtedness of the Company and its Restricted Subsidiaries outstanding on the Second Amendment Effective Date after giving effect to the use of proceeds hereunder, until such amounts are repaid.

 

“Existing Note Documents” means the Existing Note Indenture, the Existing Notes and the Existing Note Guarantees (whether contained in the Existing Note Indenture or otherwise).

 

“Existing Note Guarantees” means the “Note Guarantees” as defined in the Existing Note Indenture.

 

“Existing Note Indenture” means the indenture governing the Existing Notes dated on or about May 20, 2013, and made between, among others, the Existing Note Trustee, the Security Trustee, MU Finance plc and the senior note guarantors.

 

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“Existing Note Trustee” means The Bank of New York Mellon as trustee under the Existing Note Indenture.

 

“Existing Notes” means the senior notes due 2017 issued or to be issued by MU Finance plc under the Existing Note Indenture.

 

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

 

“Facility Agreement” means this Agreement, as amended by the Amendment and Restatement Agreement, the Second Amendment and Restatement Agreement and as further amended and/or amended and restated from time to time.

 

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in an arm’s length transaction not involving distress or necessity of either party, determined in good faith by the Board of Directors of the Company (unless otherwise provided in this Agreement).

 

“Finance Documents” has the meaning give to such term in the Facility Agreement.

 

“Finance Parties” has the meaning given to such term in the Facility Agreement.

 

“Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the ratio of the Consolidated EBITDA of such Person for such period to the Consolidated Interest Expense of such Person for such period.  In the event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems Disqualified Stock or preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “FCCR Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect (as determined in good faith by a Senior Financial Officer of the Company) to such incurrence, assumption, guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of Disqualified Stock or preferred stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference period.

 

In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

 

(a)                                 acquisitions that have been made by the specified Person or any of its Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Restricted Subsidiaries acquired by the specified Person or any of its Restricted Subsidiaries, and including all related financing transactions and including increases in ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the FCCR Calculation Date, or that are to be made on the FCCR Calculation Date, will be given pro forma effect (as determined in good faith by a Senior Financial Officer of the Company and may include anticipated expense and cost reduction synergies) as if they had occurred on the first day of the four-quarter reference period;

 

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(b)                                 the Consolidated EBITDA attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of prior to the FCCR Calculation Date, will be excluded;

 

(c)                                  the Consolidated Interest Expense attributable to discontinued operations, as determined in accordance with IFRS, and operations or businesses (and ownership interests therein) disposed of prior to the FCCR Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Consolidated Interest Expense will not be obligations of the specified Person or any of its Restricted Subsidiaries following the FCCR Calculation Date;

 

(d)                                 any Person that is a Restricted Subsidiary on the FCCR Calculation Date will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period;

 

(e)                                  any Person that is not a Restricted Subsidiary on the FCCR Calculation Date will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period; and

 

(f)                                   if any Indebtedness bears a floating rate of interest, the interest expense on such Indebtedness will be calculated as if the rate in effect on the FCCR Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the FCCR Calculation Date in excess of 12 months, or, if shorter, at least equal to the remaining term of such Indebtedness).

 

“Governmental Authority” means

 

(a)                                 the government of

 

(i)                                     the United States of America or the United Kingdom or any state or other political subdivision of either thereof, or

 

(ii)                                  any other jurisdiction in which the Company or any Restricted Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Parent Subsidiary, or

 

(b)                                 any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

 

“Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise).

 

“Guarantors” has the meaning given to such term in the Facility Agreement.

 

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“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under:

 

(a)                                 interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements;

 

(b)                                 other agreements or arrangements designed to manage interest rates or interest rate risk; and

 

(c)                                  other agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices.

 

“Holding Company” has the meaning given to such term in the Facility Agreement.

 

“Issuer” means Manchester United Football Club Limited (registration number 00095489), a company incorporated in England and Wales with limited liability.

 

“IFRS” means International Financial Reporting Standards (formerly International Accounting Standards) endorsed from time to time by the European Union or any variation thereof with which the Issuer or its Restricted Subsidiaries are, or may be, required to comply.  Except as otherwise set forth in this Schedule, all ratios and calculations based on IFRS contained in this Schedule shall be computed in accordance with IFRS as in effect on the Second Amendment Effective Date.

 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables), whether or not contingent:

 

(a)                                 in respect of borrowed money;

 

(b)                                 evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

 

(c)                                  in respect of bankers’ acceptances;

 

(d)                                 representing Capital Lease Obligations;

 

(e)                                  representing the balance deferred and unpaid of the purchase price of any property or services due more than six months after such property is acquired or such services are completed;

 

(f)                                   representing any Hedging Obligations;

 

(g)                                  representing Attributable Debt; and

 

(h)                                 representing liabilities under the Existing Hedging Agreements,

 

if and to the extent any of the preceding items (other than letters of credit, Attributable Debt and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with IFRS.  In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified

 

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Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.

 

In addition, for the purpose of avoiding duplication in calculating the outstanding principal amount of Indebtedness for purposes of Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock), Indebtedness arising solely by reason of the existence of a Lien to secure other Indebtedness permitted to be incurred under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock) will not be considered incremental Indebtedness.

 

The term “Indebtedness” shall not include:

 

(a)                                 in connection with the purchase by the Company or any of its Restricted Subsidiaries of any business, any post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such business after the closing; provided, however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid within 30 days thereafter;

 

(b)                                 any contingent obligations in respect of workers’ compensation claims, early retirement or termination obligations, pension fund obligations or contributions or similar claims, obligations or contributions or social security or wage Taxes; or

 

(c)                                  Subordinated Shareholder Funding.

 

“Intellectual Property” has the meaning given to such term in the Facility Agreement.

 

“Intercreditor Agreement” has the meaning given to such term in the Facility Agreement.

 

“Investments” means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations, but excluding advances or extensions of credit to customers or suppliers made in the ordinary course of business), advances or capital contributions (excluding commission, travel and similar advances to Officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as Investments on a balance sheet prepared in accordance with IFRS.  If the Company or any of its Restricted Subsidiaries sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Company’s Investments in such Restricted Subsidiary that were not sold or disposed of in an amount determined as provided in Clause 2.3 (Restricted Payments).  The acquisition by the Company or any of its Restricted Subsidiaries of a Person that holds an Investment in a third

 

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Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in Clause 2.3 (Restricted Payments).  Except as otherwise provided in the Finance Documents, the amount of an Investment will be determined at the time the Investment is made and without giving effect to subsequent changes in value.

 

“Issuer” means Manchester United Football Club Limited (registration number 00095489).

 

“Lenders” has the meaning given to such term in the Facility Agreement.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement and any lease in the nature thereof.

 

“Material Company” has the meaning given to such term in the Facility Agreement.

 

“MUL” means Manchester United Limited (registration number 02570509).

 

“Make-Whole Amount” has the meaning given to such term in the Note Purchase Agreement (in its form at the Second Amendment Effective Date).

 

“Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of the direct costs relating to such Asset Sale, including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements, and any reserve for adjustment or indemnification obligations in respect of the sale price of such asset or assets established in accordance with IFRS.

 

“Non-Recourse Debt” means Indebtedness:

 

(a)                                 as to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor or otherwise; and

 

(b)                                 as to which the holders have been notified in writing that they will not have any recourse to the stock or assets of the Company or any of its Restricted Subsidiaries (other than the Equity Interests of an Unrestricted Subsidiary).

 

“Note Documents” means the Note Purchase Agreement, the Notes, the Intercreditor Agreement, the Representative Deed and the Transaction Security Documents.

 

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“Note Guarantee” means the Guarantee by each Guarantor of the Company’s obligations under the Note Purchase Agreement and the Notes, executed pursuant to the provisions of the Note Purchase Agreement.

 

“Notes Offer” is defined in Clause 1.2 (Asset Sales).

 

“Note Purchase Agreement” means the note purchase agreement dated as of on or around the Second Amendment Effective Date entered into by, among others, the Issuer, and relating to the Notes.

 

“Notes” means the 3.79% senior secured notes in an aggregate principal amount of $425,000,000 due on or about 24 June 2027 issued on the Second Amendment Effective Date.

 

“Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Obligor” has the meaning given to such term in the Facility Agreement.

 

“Officer” means, with respect to any Person, the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Chief of Staff, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Managing Director, Director or any Vice-President of such Person.

 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Issuer or other Obligor, as applicable, whose responsibilities extend to the subject matter of such certificate.

 

“Parent Entity” means any direct or indirect parent company or entity of the Company.

 

“Parent Subsidiary” means any Subsidiary of the Company, including the Issuer.

 

“Permitted Business” means (i) any businesses, services or activities engaged in by the Company and its Restricted Subsidiaries on the Issue Date and (ii) any other business or activity which is ancillary, reasonably related or complementary thereto.

 

“Permitted Collateral Liens” means:

 

(a)                                 Liens on the Collateral to secure the Finance Documents;

 

(b)                                 Liens on the Collateral to secure the Existing Notes (or the Existing Note Guarantees) and the Existing RCF Facilities Agreement (or any guarantee thereof) until the Second Amendment Effective Date, the Notes (or the Note Guarantees) and any Permitted Refinancing Indebtedness in respect thereof (and Permitted Refinancing Indebtedness in respect of Permitted Refinancing Indebtedness); provided that each of the parties thereto will have entered into the Intercreditor Agreement (or any additional intercreditor agreement entered into pursuant to the terms of the Intercreditor Agreement); provided further

 

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that all property and assets (including, without limitation, the Collateral) securing such Permitted Refinancing Indebtedness secures the Facilities and any guarantee thereof on a senior or pari passu basis;

 

(c)                                  Liens on the Collateral to secure Indebtedness: (i) under the RCF Facilities; (ii) permitted by paragraph (e) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) or paragraph (p) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock); and (iii) permitted by Clause 3.1 of (Incurrence of Indebtedness and Issuance of Preferred Stock) and Permitted Refinancing Indebtedness in respect thereof (and Permitted Refinancing Indebtedness in respect of such Permitted Refinancing Indebtedness), provided that, in each case, all property and assets (including, without limitation, the Collateral) securing such Indebtedness also secures the Facility and any guarantee thereof on a senior or pari passu basis and provided further that each of the parties thereto will have entered into the Intercreditor Agreement (or any additional intercreditor agreement entered into pursuant to the terms of the Intercreditor Agreement);

 

(d)                                 Liens on the Collateral securing the Company’s or any Restricted Subsidiary’s obligations under (i) Hedging Obligations (other than Hedging Obligations in respect of commodity prices and only to the extent such Hedging Obligations relate to Indebtedness referred to in paragraphs (a) or (b) above and such Indebtedness is also secured by the Collateral) permitted by paragraph (i) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock), and (ii) the Existing Hedging Agreements and any Permitted Refinancing Indebtedness in respect thereof (and any Permitted Refinancing Indebtedness in respect of such Permitted Refinancing Indebtedness), provided that the assets and properties securing such Indebtedness will also secure the Facility or any guarantee thereof on a senior or pari passu basis and provided further that each of the parties thereto will have entered into the Intercreditor Agreement (or any additional intercreditor agreement entered into pursuant to the terms of the Intercreditor Agreement);

 

(e)                                  Liens on the Collateral arising by operation of law that are described in one or more of paragraphs (d), (g), (h), (i), (l), (n) and (o) of the definition of “Permitted Liens” and that, in each case, would not materially interfere with the ability of the Security Trustee to enforce any Lien over the Collateral; and

 

(f)                                   Liens incurred in the ordinary course of business of the Company or any of its Restricted Subsidiaries with respect to obligations that in total do not exceed £5.0 million at any one time outstanding and that (i) are not incurred in connection with the borrowing of money or the obtaining of advances or credit (other than trade credit in the ordinary course of business) and (ii) do not in the aggregate materially detract from the value of the property or materially impair the use thereof in the operation from the Company’s or such Restricted Subsidiary’s business.

 

“Permitted Debt” has the meaning given to such term in Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock).

 

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“Permitted Investments” means:

 

(a)                                 any Investment in the Company or in a Restricted Subsidiary of the Company;

 

(b)                                 any Investment in cash and Cash Equivalents;

 

(c)                                  any Investment by the Company or any of its Restricted Subsidiaries in a Person, if as a result of such Investment:

 

(i)                                     such Person becomes a Restricted Subsidiary of the Company; or

 

(ii)                                  such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company;

 

(d)                                 any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Clause 1 (Assets Sales);

 

(e)                                  any acquisition of assets or Capital Stock solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company;

 

(f)                                   any Investments received in compromise or resolution of (i) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Company or any of its Restricted Subsidiaries, including settlement of delinquent obligations pursuant to any plan of reorganisation or similar arrangement upon the bankruptcy or insolvency of, or other foreclosure with respect to, any trade creditor or customer; or (ii) litigation, arbitration or other disputes with Persons who are not Affiliates;

 

(g)                                  Investments in receivables owing to the Company or any of its Restricted Subsidiaries created or acquired in the ordinary course of business;

 

(h)                                 Investments represented by Hedging Obligations;

 

(i)                                     loans or advances to officers, directors or employees made in the ordinary course of business of the Company or any of its Restricted Subsidiaries in an aggregate principal amount not to exceed £5.0 million at any one time outstanding;

 

(j)                                    repurchases of the Notes in accordance with section 8 (Payment and Prepayment of the Notes) of the Note Purchase Agreement;

 

(k)                                 any Guarantee of Indebtedness permitted to be incurred under Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock);

 

(l)                                     any Investment existing on, or made pursuant to binding commitments existing on, the Second Amendment Effective Date and any Investment consisting of an extension, modification or renewal of any Investment existing on, or made pursuant to a binding commitment existing on, the Second Amendment Effective Date; provided that the amount of any such Investment may be increased (i) as required by the terms of such Investment as in

 

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existence on the Second Amendment Effective Date or (ii) as otherwise permitted under this Agreement;

 

(m)                             Investments acquired after the Second Amendment Effective Date as a result of the acquisition by the Company or any of its Restricted Subsidiaries of another Person, including by way of a merger, amalgamation or consolidation with or into the Company or any of its Restricted Subsidiaries in a transaction that is not prohibited by Clause 7 (Merger, Consolidation, Etc.) after the Second Amendment Effective Date to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;

 

(n)                                 Investments made with the Excluded Contributions;

 

(o)                                 other Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this paragraph (o) that are at the time outstanding not to exceed £50.0 million, provided that if an Investment is made pursuant to this clause in a Person that is not a Restricted Subsidiary of the Company and such Person subsequently becomes a Restricted Subsidiary of the Company or is subsequently designated a Restricted Subsidiary pursuant to Clause 10 (Designation of Restricted and Unrestricted Subsidiaries), such Investment, if applicable, shall thereafter be deemed to have been made pursuant to paragraph (c) of the definition of “Permitted Investments” and not this paragraph.

 

“Permitted Jurisdiction” means (a) the United Kingdom, (b) the United States of America or any state thereof, (c) Switzerland, (d) Canada, (e) the Cayman Islands and (f) any country that was a member of the European Union on April 30, 2004 (other than Greece Spain, Italy or Portugal).

 

“Permitted Liens” means:

 

(a)                                 Liens in favour of the Obligors;

 

(b)                                 Liens on property of a Person existing at the time such Person becomes a Restricted Subsidiary of the Company or is merged with or into or consolidated with the Company or any of its Restricted Subsidiaries; provided that such Liens were in existence prior to the contemplation of such Person becoming a Restricted Subsidiary of the Company or such merger or consolidation and do not extend to any assets other than those of the Person that becomes a Restricted Subsidiary of the Company or is merged with or into or consolidated with the Company or any of its Restricted Subsidiaries;

 

(c)                                  Liens on property (including Capital Stock) existing at the time of acquisition of the property by the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to such acquisition and not incurred in contemplation of, such acquisition;

 

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(d)                                 Liens to secure the performance of statutory obligations, insurance, surety or appeal bonds, workers compensation obligations, performance bonds or other obligations of a like nature incurred in the ordinary course of business (including Liens to secure letters of credit issued to assure payment of such obligations);

 

(e)                                  Liens to secure Indebtedness (including Capital Lease Obligations) permitted by paragraph (e) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock) covering only the assets acquired with or financed by such Indebtedness;

 

(f)                                   Liens existing on the Second Amendment Effective Date;

 

(g)                                  Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded; provided that any reserve or other appropriate provision as is required in conformity with IFRS has been made therefor;

 

(h)                                 Liens imposed by law, such as carriers’, warehousemen’s, landlords’ and mechanics’ Liens, in each case, incurred in the ordinary course of business;

 

(i)                                     survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

 

(j)                                    Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees) and the RCF Facilities;

 

(k)                                 Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred under the Finance Documents; provided, however, that:

 

(i)                                     the new Lien is limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions thereof); and

 

(ii)                                  the Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (1) the outstanding principal amount, or, if greater, committed amount, of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged with such Permitted Refinancing Indebtedness and (2) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding, refinancing, replacement, defeasance or discharge;

 

(l)                                     bankers’ Liens, rights of setoff, Liens arising out of judgments or awards not constituting an Event of Default and notices of lis pendens and associated

 

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rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made;

 

(m)                             Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;

 

(n)                                 Liens on specific items of inventory or other goods (and the proceeds thereof) of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 

(o)                                 any interest or title of a lessor, licensor or sublicensee under any operating lease, license or sublicense, as applicable;

 

(p)                                 Liens securing Hedging Obligations;

 

(q)                                 Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business;

 

(r)                                    Liens to secure Indebtedness permitted by paragraph (p) of Clause 3.2 (Incurrence of Indebtedness and Issuance of Preferred Stock);

 

(s)                                   Liens to secure Indebtedness of New Holdco or any Restricted Subsidiaries that are Subsidiaries of New Holdco (including, without limitation, Sponsorship Newco) permitted by Clause 3 (Incurrence of Indebtedness and Issuance of Preferred Stock); and

 

(t)                                    Liens incurred in the ordinary course of business of the Company or any Restricted Subsidiary with respect to obligations (other than Indebtedness) that do not exceed £25.0 million at any one time outstanding.

 

“Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

 

(a)                                 the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged (plus all accrued interest on the Indebtedness and the amount of all fees, commissions and expenses, including premiums, incurred in connection therewith);

 

(b)                                 such Permitted Refinancing Indebtedness has a final maturity date not earlier than the final maturity date of the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged, and has a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged;

 

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(c)                                  if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is subordinated in right of payment to the obligations under the Finance Documents, such Permitted Refinancing Indebtedness is subordinated in right of payment to the obligations under the Finance Documents on terms at least as favourable to the Lenders as those contained in the documentation governing the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; and

 

(d)                                 such Indebtedness is incurred either by an Obligor (if the Obligor was the obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged) or by the Restricted Subsidiary that was the obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged and is guaranteed only by Persons who were obligors on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organisation, limited liability company or government or other entity.

 

“Principal” means the six lineal descendants of Malcom Glazer who are Avram Glazer, Joel Glazer, Bryan Glazer, Edward Glazer, Darcie Glazer Kassewitz and Kevin Glazer.

 

“Public Debt” means any Indebtedness consisting of bonds, debentures, notes or other similar debt securities issued in (i) a public offering registered under the U.S. Securities Act or (ii) a private placement to institutional investors that is underwritten for resale in accordance with Rule 144A or Regulation S under the U.S. Securities Act, whether or not it includes registration rights entitling the holders of such debt securities to registration thereof with the SEC for public resale. The term Public Debt (i) shall not include the Notes and (ii) for the avoidance of doubt, shall not be construed to include any Indebtedness issued to institutional investors in a direct placement of such Indebtedness that is not underwritten by an intermediary (it being understood that, without limiting the foregoing, a financing that is distributed to not more than 10 Persons (provided that multiple managed accounts and affiliates of any such Persons shall be treated as one Person for the purposes of this definition) shall be deemed not to be underwritten), or any Indebtedness under the RCF Facilities Agreement, commercial bank or similar Indebtedness, Capital Lease Obligation or recourse transfer of any financial asset or any other type of Indebtedness incurred in a manner not customarily viewed as a “securities offering” under the U.S. Securities Act.

 

“Public Equity Offering” means a bona fide underwritten public offering of the Capital Stock (other than Disqualified Stock) of the Company or a Parent Entity, either:

 

(a)                                 pursuant to a flotation on the London Stock Exchange or any other nationally recognised stock exchange or listing authority in a member state of the European Union; or

 

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(b)                                 pursuant to an effective registration statement under the U.S. Securities Act (other than a registration statement on Form S-8 or otherwise relating to Equity Interests issued or issuable under any employee benefit plan).

 

“Relevant Equity” has the meaning given to such term in the Facility Agreement.

 

“Public Market” means any time after:

 

(a)                                 a Public Equity Offering has been consummated; and

 

(b)                                 at least 20 per cent. of the total issued and outstanding ordinary shares or common equity of the Company or a Parent Entity has been distributed to investors other than the Principals or any of their respective Affiliates or any other direct or indirect shareholders of the Company as of the Second Amendment Effective Date pursuant to one or more Public Equity Offerings.

 

“Related Party” means:

 

(a)                                 Red Football Limited Partnership, a limited partnership formed in the State of Nevada, U.S.;

 

(b)                                 the parents or spouse of a Principal, the parents of a Principal’s spouse and any of a Principal’s, his or her spouse’s or their parents’ direct descendants; or

 

(c)                                  any trust, corporation, partnership, limited liability company or other entity, the beneficiaries, shareholders, partners, members, owners or Persons beneficially holding a 50.1 per cent. or more controlling interest of which consist of any one or more Principals and/or such other Persons referred to in the immediately preceding paragraph (b).

 

“Representative Deed” means the representative deed dated on or about the Second Amendment Effective Date between, among others, the Purchasers and the Creditor Representative (each as defined in the Note Purchase Agreement).

 

“Restricted Group” has the meaning given to such term in the Facility Agreement.

 

“Restricted Investment” means an Investment other than a Permitted Investment.

 

“Restricted Subsidiaries” means a Subsidiary of the Company other an Unrestricted Subsidiary.

 

“Schedule” means this Schedule 17 (Restrictive Covenants).

 

“Second Amendment Effective Date” has the meaning given to such term in the Facility Agreement.

 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Issuer or other applicable Obligor.

 

“Senior Secured Indebtedness” means, as of any date of determination, the principal amount of any Indebtedness that is secured by a Lien and Indebtedness of a Restricted Subsidiary of the Company that is not a Guarantor.

 

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“Specified Asset” means Old Trafford Stadium and grounds and any real property related thereto.

 

“Stated Maturity” means, with respect to any instalment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the Second Amendment Effective Date, and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

 

“Sterling” or “£” means the lawful currency of the United Kingdom.

 

“Sterling Equivalent” means, with respect to any monetary amount in a currency other than sterling, at any time of determination thereof by the Company or the Agent, the amount of sterling obtained by converting such currency other than sterling involved in such computation into sterling at the spot rate for the purchase of sterling with the applicable currency other than sterling as published in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available in The Financial Times, such source as may be selected in good faith by the Company) on the date of such determination.

 

“Subsidiary” means, with respect to any specified Person:

 

(a)                                 any corporation, association or other business entity of which more than 50 per cent. of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(b)                                 any partnership or limited liability company of which (i) more than 50 per cent. of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, and (ii) such Person or any Subsidiary of such Person is a controlling general partner or otherwise controls such entity.

 

“Subordinated Shareholder Funding” means, collectively, any funds provided to the Company by any Parent Entity or any Principal or Related Party, in exchange for or pursuant to any security, instrument or agreement other than Capital Stock, together with any such security, instrument or agreement and any other security or instrument other than Capital Stock issued in payment of any obligation under any Subordinated Shareholder Funding; provided that such Subordinated Shareholder Funding:

 

(a)                                 does not (including upon the happening of any event) mature or require any amortisation or other payment of principal prior to the first anniversary of the

 

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Termination Date (other than through conversion or exchange of any such security or instrument for Qualified Capital Stock or for any other security or instrument meeting the requirements of the definition);

 

(b)                                 does not (including upon the happening of any event) require the payment of cash interest prior to the first anniversary of the Termination Date;

 

(c)                                  does not (including upon the happening of any event) provide for the acceleration of its maturity nor confers on its shareholders any right (including upon the happening of any event) to declare a default or event of default or take any enforcement action, in each case, prior to the first anniversary of the Termination Date;

 

(d)                                 is not secured by a lien on any assets of the Company or a Restricted Subsidiary and is not guaranteed by any Subsidiary of the Company;

 

(e)                                  is subordinated in right of payment to the prior payment in full in cash of the Facility in the event of any default, bankruptcy, reorganisation, liquidation, winding up or other disposition of assets of the Company at least to the same extent as the Subordinated Liabilities (as such term is defined in the Intercreditor Agreement) are subordinated to the Facility under the Intercreditor Agreement;

 

(f)                                   does not (including upon the happening of any event) restrict the payment of amounts due in respect of the Notes, the Facility or the RCF Facilities or compliance by the Company with its obligations under the Note Documents, the Finance Documents and the Finance Documents (as defined in the RCF Facilities Agreement);

 

(g)                                  does not (including upon the happening of an event) constitute Voting Stock; and

 

(h)                                 is not (including upon the happening of any event) mandatorily convertible or exchangeable, or convertible or exchangeable at the option of the holder, in whole or in part, prior to the first anniversary of the Termination Date other than into or for Capital Stock (other than Disqualified Stock) of the Company;

 

provided, however, that any event or circumstance that results in such Indebtedness ceasing to qualify as Subordinated Shareholder Funding, such Indebtedness shall constitute an incurrence of such Indebtedness by the Company, and any and all Restricted Payments made through the use of the net proceeds from the incurrence of such Indebtedness since the date of the original issuance of such Subordinated Shareholder Funding shall constitute new Restricted Payments that are deemed to have been made after the date of the original issuance of such Subordinated Shareholder Funding.

 

“Tax” means any tax (whether income, documentary, sales, stamp, registration, issue, capital, property, excise or otherwise), duty, assessment, levy, impost, fee, charge or withholding imposed by a Governmental Authority, together with any interest or any penalty, addition to tax or additional amount imposed by any Governmental Authority

 

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responsible for the imposition of any such tax. “Taxes” and “Taxation” shall be construed to have corresponding meanings.

 

“Transaction Security Documents” has the meaning given to such term in the Intercreditor Agreement.

 

“Transaction Security” has the meaning given to such term in the Facility Agreement.

 

“U.S. Dollar” or “$” means the lawful currency of the United States of America.

 

“U.S. Dollar Equivalent” means, with respect to any monetary amount in a currency other than U.S. Dollars, at any time of determination thereof by the Company or the Agent the amount of U.S. Dollars obtained by converting such currency other than U.S. Dollars involved in such computation into U.S. Dollars at the spot rate for the purchase of U.S. Dollars with the applicable currency other than U.S. Dollars as published in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available in The Financial Times, such source as may be selected in good faith by the Company) on the date of such determination.

 

“U.S. Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder from time to time in effect.

 

“U.S. Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.

 

“Unrestricted Subsidiary” means (i) as of the Second Amendment Effective Date, MUTV and MU Interactive and (ii) any other Subsidiary of the Company (other than an Obligor or any successor to any of them) that is designated by the Board of Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors in accordance with Clause 10 (Designation of Restricted and Unrestricted Subsidiaries), but only to the extent that such Subsidiary:

 

(a)                                 has no Indebtedness other than Non-Recourse Debt;

 

(b)                                 except as permitted under Clause 8 (Transactions with Affiliates), is not party to any agreement, contract, arrangement or understanding with the Company or any of its Restricted Subsidiaries unless the terms of any such agreement, contract, arrangement or understanding are no less favourable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company;

 

(c)                                  is a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (i) to subscribe for additional Equity Interests or (ii) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results; and

 

232

 

(d)                                 has not guaranteed, pledged any of its Subsidiaries’ shares or other of its assets or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its Restricted Subsidiaries.

 

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:

 

(a)                                 the sum of the products obtained by multiplying (i) the amount of each then remaining instalment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by

 

(b)                                 the then outstanding principal amount of such Indebtedness.

 

233

 

SIGNATURES

 

[NOT RESTATED]

 

234

 

EXECUTION PAGES

 

	
THE COMPANY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
RED FOOTBALL LIMITED  for and on behalf of itself and each Obligor
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel   Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Joel   Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
/s/   Jennifer O’Brien
    	
signature   of witness
    
	
 
    	
 
    	
 
    
	
Jennifer   O’Brien
    	
name of   witness
    
	
 
    	
 
    	
 
    
	
5404   Wisconsin Ave, Ste 1050
    	
 
    
	
Chevy   Chase, MD
    	
address   of witness
    
	
 
    	
 
    	
 
    
	
Assistant
    	
occupation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
THE ORIGINAL BORROWER
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
MU FINANCE PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel   Glazer
    	
 
    
	
 
    	
 
    
	
Name:
    	
Joel   Glazer
    	
 
    
	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
 
    
	
 
    	
 
    
	
/s/   Jennifer O’Brien
    	
signature   of witness
    
	
 
    	
 
    
	
Jennifer   O’Brien
    	
name of   witness
    
	
 
    	
 
    
	
5404   Wisconsin Ave, Ste 1050
    	
 
    
	
Chevy   Chase, MD
    	
address   of witness
    
	
 
    	
 
    
	
Assistant
    	
occupation
    

 

[Third Amendment and Restatement Agreement — Signature Page]

 

 

	
THE ACCEDING BORROWER
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
MANCHESTER UNITED FOOTBALL CLUB LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel   Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Joel   Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
/s/   Jennifer O’Brien
    	
signature   of witness
    
	
 
    	
 
    	
 
    
	
Jennifer   O’Brien
    	
name of witness
    
	
 
    	
 
    	
 
    
	
5404   Wisconsin Ave, Ste 1050
    	
 
    
	
Chevy   Chase, MD
    	
address   of witness
    
	
 
    	
 
    	
 
    
	
Assistant
    	
occupation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
THE AGENT
    	
 
    
	
 
    	
 
    	
 
    
	
For and   on behalf of
    	
 
    
	
BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Kevin   Day
    	
 
    
	
 
    	
 
    
	
Name:
    	
Kevin Day
    	
 
    
	
 
    	
 
    
	
Title:
    	
Vice   President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE LENDER
    	
 
    
	
 
    	
 
    	
 
    
	
For and   on behalf of
    	
 
    
	
BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED
    
	
 
    	
 
    
	
By:
    	
/s/ Fiona   Malitsky
    	
 
    
	
 
    	
 
    
	
Name:
    	
Fiona   Malitsky
    	
 
    
	
 
    	
 
    
	
Title:
    	
Vice   President
    	
 
    

 

[Third Amendment and Restatement Agreement — Signature Page]

 

 

SCHEDULE 3

 

Form of Novation Certificate

 

To:         Bank of America Merrill Lynch International Limited as Agent

 

From: MUF Finance plc (the “Existing Borrower”) and Manchester United Football Club Limited (the “New Borrower”)

 

Dated:    [·]

 

$225,000,000 Facility Agreement dated 20 May 2013 (as amended and/or restated from time to time) (the “Facility Agreement”)

 

1.                                     We refer to the Facility Agreement. This is a Novation Certificate. Terms defined in the Facility Agreement have the same meaning in this Novation Certificate unless given a different meaning in this Novation Certificate. This Novation Certificate is a Finance Document.

 

2.                                     Pursuant to Clause 2 (Debt Transfer) of the Third Amendment and Restatement Agreement, we hereby notify you that with immediate effect from the date of this Novation Certificate, all of the Existing Borrower’s rights and obligations as Borrower in respect of the Facility are transferred and novated to the New Borrower and the Existing Borrower will be released from all further liabilities and obligations as Borrower in respect of the Facility.

 

3.                                     The Agent, on behalf of the Lenders which are the Lenders of the Loans, agrees to the novation referred to in paragraph 2 above.

 

4.                                     This Novation Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Novation Certificate.

 

5.                                     This Novation Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law and the courts of England and Wales have exclusive jurisdiction to settle any dispute arising out of or in connection with this Novation Certificate (including a dispute relating to any non-contractual obligation arising out of or in connection with this Novation Certificate).

 

6.                                     Notwithstanding a party executing this Novation Certificate under hand, this Novation Certificate is delivered as a deed on the date stated at the beginning of this Novation Certificate.

 

 

	
EXECUTED AS A DEED BY
    	
 
    
	
MUF FINANCE PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
signature of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
name of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
address of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
occupation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
MANCHESTER UNITED   FOOTBALL CLUB LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
signature of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
name of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
address of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
occupation
    	
 
    
					

 

 

This Novation Certificate is accepted by the Agent and the Novation Date is confirmed as                    June 2018.

 

The Agent

 

By:

 

 

EXECUTION PAGES

 

	
THE COMPANY
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
RED FOOTBALL LIMITED for and   on behalf of itself and each Obligor
    
	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
/s/ Jennifer O’Brien
    	
 
    	
signature of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Jennifer O’Brien
    	
 
    	
name of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
5404 Wisconsin Ave, Ste 1050
    	
 
    	
 
    	
 
    
	
Chevy Chase, MD
    	
 
    	
address of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Assistant
    	
 
    	
occupation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE ORIGINAL BORROWER
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
MU FINANCE PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
/s/ Jennifer O’Brien
    	
 
    	
signature of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Jennifer O’Brien
    	
 
    	
name of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
5404 Wisconsin Ave, Ste 1050
    	
 
    	
 
    	
 
    
	
Chevy Chase, MD
    	
 
    	
address of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Assistant
    	
 
    	
occupation
    	
 
    
					

 

[Third Amendment and Restatement Agreement – Signature Page]

 

 

	
THE ACCEDING BORROWER
    	
 
    
	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
 
    
	
MANCHESTER UNITED   FOOTBALL CLUB LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Joel Glazer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
Witness
    	
 
    
	
 
    	
 
    
	
/s/ Jennifer O’Brien
    	
 
    	
signature of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Jennifer O’Brien
    	
 
    	
name of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
5404 Wisconsin Ave, Ste 1050
    	
 
    	
 
    	
 
    
	
Chevy Chase, MD
    	
 
    	
address of witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Assistant
    	
 
    	
occupation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE AGENT
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Kevin Day
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Kevin Day
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE LENDER
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Fiona Malitsky
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Fiona Malitsky
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Vice President
    	
 
    
					

 

[Third Amendment and Restatement Agreement – Signature Page]

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