Document:

Ex 4.3 RCF Additional Facility X Accession Agreement

EXHIBIT 4.3

TELENET ADDITIONAL FACILITY X ACCESSION AGREEMENT
REVOLVING LOAN X FACILITY
		
	To:
	The Bank of Nova Scotia as Facility Agent and KBC Bank NV as Security Agent

		
	From:
	The Telenet Additional Facility X Lenders (as defined below)

Date:              11 April 2014
TELENET NV - €2,300,000,000 Credit Agreement 
dated 1 August 2007, as amended from time to time (the Credit Agreement)
		
	1.
	In this Agreement:

Liberty Global Reference Agreement means any or all of (i) the credit agreement dated 16th January 2004 between (among others) UPC Broadband Holding B.V. as borrower and The Bank of Nova Scotia as facility agent; (ii) the credit agreement dated 7 June 2013 between (among others) Virgin Media Investment Holdings Limited as borrower and The Bank of Nova Scotia as facility agent; and (iii) the credit agreement between (among others) Ziggo B.V. as borrower and The Bank of Nova Scotia as facility agent (in each case as amended from time to time up to the date of this Agreement).
Majority Revolving Loan X Facility Lenders means Telenet Additional Facility X Lenders, the aggregate of whose Revolving Loan X Facility Commitments exceeds two thirds of the aggregate of the Revolving Loan X Facility Commitments of all Telenet Additional Facility X Lenders.
Maturity Date means the last day of the Term of a Revolving Loan X Facility Loan. 
Revolving Loan X Facility means the €286,000,000 revolving loan facility made available by the Telenet Additional Facility X Lenders under this Agreement.
Revolving Loan X Facility Commitment means, in relation to a Telenet Additional Facility X Lender, the amount in euros set opposite its name under the heading "Revolving Loan X Facility Commitment" in Schedule 1 of this Agreement executed by that Telenet Additional Facility X Lender, to the extent not cancelled, transferred, or reduced under the Credit Agreement.
Revolving Loan X Facility Loan means a Euro denominated Telenet Additional Facility Loan made available to the Borrower by the Telenet Additional Facility X Lenders under the Revolving Loan X Facility.
Rollover X Loan means one or more Revolving Loan X Facility Loans:
		
	(a)
	to be made on the same day that a maturing Revolving Loan X Facility Loan is due to be repaid;

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

		
	(c)
	to be made to the same Borrower for the purpose of refinancing a maturing Revolving Loan X Facility Loan. 

Telenet Additional Facility X Lender means each of the lenders under the Revolving Loan X Facility (as listed in Schedule 1 of this Agreement), such defined term to include any lender which becomes a 

	
			
	 

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New Lender in respect of the Revolving Loan X Facility, by the execution by the Facility Agent of a Transfer Certificate substantially in the form of Schedule 3 or Schedule 4, as applicable, of this Agreement.
		
	2.
	Unless otherwise defined in this Agreement, terms defined in the Credit Agreement shall have the same meaning in this Agreement and a reference to a Clause is a reference to a Clause of the Credit Agreement.  The principles of construction set out in Clause 1.2 (Construction) of the Credit Agreement apply to this Agreement as though they were set out in full in this Agreement.

		
	3.
	We refer to Clause 2.7 (Telenet Additional Facility) of the Credit Agreement.

		
	4.
	This Agreement will take effect on the date on which the Facility Agent notifies the Borrower and the Telenet Additional Facility X Lenders that it has received the documents and evidence set out in Schedule 2 of this Agreement, in each case in form and substance satisfactory to it or, as the case may be, the requirement to provide any of such documents or evidence has been waived by the Majority Revolving Loan X Facility Lenders (the Effective Date).

		
	5.
	We, the Telenet Additional Facility X Lenders, agree:

		
	(a)
	to become party to and to be bound by the terms of the Credit Agreement as Lenders in accordance with Clause 2.7 (Telenet Additional Facility) of the Credit Agreement; and

		
	(b)
	to become party to the Intercreditor Agreement as Lenders and to observe, perform and be bound by the terms and provisions of the Intercreditor Agreement in the capacity as Lenders in accordance with Clause 20.7 (Senior Creditors) of the Intercreditor Agreement.

		
	6.
	The Telenet Additional Facility Commitment in relation to a Telenet Additional Facility X Lender (for the purpose of the definition of Telenet Additional Facility Commitment in Clause 1.1 (Definitions) of the Credit Agreement) is its Revolving Loan X Facility Commitment.

		
	7.
	Any interest due in relation to the Revolving Loan X Facility will be payable on the last day of each Term in accordance with Clause 8 (Interest) of the Credit Agreement.

		
	8.
	The Availability Period for the Revolving Loan X Facility shall be from and including the Effective Date up to and including the date falling one month prior to the Final Maturity Date in respect of the Revolving Loan X Facility.

		
	9.
	Subject to the terms of this Agreement, the Telenet Additional Facility X Lenders make available to the Borrower a revolving credit facility in an amount equal to the aggregate of the Revolving Loan X Facility Commitments.

		
	10.
	Notwithstanding Clause 4.2 (Conditions precedent) of the Credit Agreement, in relation to the Revolving Loan X Facility, the obligations of each Telenet Additional Facility X Lender to participate in any Revolving Loan X Facility Loan are subject to the further conditions precedent that on both the date of the Request and the Utilisation Date for that Revolving Loan X Facility Loan:

		
	(a)
	in the case of a Rollover X Loan, no Event of Default is outstanding or would result from the Revolving Loan X Facility Loan; or

		
	(b)
	in any other case:

	
			
	 

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	(i)
	the Repeating Representations are, and will be immediately after the Revolving Loan X Facility Loan is drawn, correct in all material respects; and

		
	(ii)
	no Default is outstanding or would result from the Revolving Loan X Facility Loan; and

		
	(iii)
	no change of control has occurred where the event has not been waived by the Majority Lenders.

		
	11.
	Each Borrower must repay each Revolving Loan X Facility Loan on its Maturity Date. Subject to the other terms of this Agreement and the Credit Agreement, any amounts repaid under this paragraph may be re-borrowed. 

		
	12.
	Any voluntary repayment of a Revolving Loan X Facility Loan under Clause 7.6 (Voluntary prepayment) of the Credit Agreement may be re-borrowed on the terms of the Credit Agreement. Any other prepayment of a Revolving Loan X Facility Loan may not be re-borrowed.

		
	13.
	Each Revolving Loan X Facility Loan has one Term only. A Borrower must select the Term for a Revolving Loan X Facility Loan in the relevant Request. Subject to Clause 9.5 (No overriding the Final Maturity Date) and Clause 9.6 (Other adjustments) of the Credit Agreement, each Term for a Revolving Loan X Facility Loan will be one, two, three or six months or any other period agreed by the Company and the Facility Agent.

		
	14.
	Unless the Facility Agent agrees, a Borrower shall not deliver a Request in relation the Revolving Loan X Facility if as a result of the Request more than 15 Loans would be outstanding.

		
	15.
	The Revolving Loan X Facility Loan will be used for the general corporate purposes of the Group (including financing a Permitted Acquisition or Permitted Joint Venture).

		
	16.
	The Final Maturity Date in respect of this Revolving Loan X Facility will be 30 September 2020.

		
	17.
	Any outstanding Revolving Loan X Facility Loans will be repaid in full on the Final Maturity Date in respect of the Revolving Loan X Facility.

		
	18.
	The Margin in relation to the Revolving Loan X Facility is 2.75 per cent. per annum less, in respect of a Telenet Additional Facility X Lender, the Mandatory Costs applicable to that Telenet Additional Facility X Lender.

		
	19.
	The interest rate for Revolving Loan X Facility will be calculated in accordance with Clause 8.1 (Calculation of interest) of the Credit Agreement, being the sum of EURIBOR, the applicable Margin and the Mandatory Costs. For the avoidance of doubt, each party to this Agreement accepts and acknowledges that EURIBOR has the meaning given to it under Clause 1.1 (Definitions) of the Credit Agreement and that if, at the time of calculation, the rate is determined to be below 0.00 per cent. then EURIBOR will be deemed to be 0.00 per cent.

		
	20.
	The Borrower in relation to the Revolving Loan X Facility is Telenet International Finance S.à r.L., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg with its registered office at 2, rue Peternelchen L-2370 Howald, Luxembourg, having a share capital of EUR395,031,000, and registered with the Luxembourg Register of Commerce and Companies under number B.155.066. 

	
			
	 

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	21.
	The Borrower shall pay to the Facility Agent for distribution to each Telenet Additional Facility X Lender a commitment fee in respect of the Revolving Loan X Facility computed at the rate of 40 per cent. of the Margin in relation to the Revolving Loan X Facility per annum on that Telenet Additional Facility X Lender's undrawn Revolving Loan X Facility Commitment.  Such commitment fee shall accrue on a daily basis on and from the Effective Date and shall be payable quarterly in arrear from the Effective Date. Accrued commitment fee is also payable to the Facility Agent for a Telenet Additional Facility X Lender on the date its Revolving Loan X Facility Commitment is cancelled in full.

22.    
		
	(a)
	Provided that any upsizing of the Revolving Loan X Facility permitted under this paragraph 22 will not breach any term of the Credit Agreement, the Revolving Loan X Facility may be upsized by any amount, by the signing of one or more further Telenet Additional Facility Accession Agreements in respect of the Revolving Loan X Facility (an Additional Facility X Accession Agreement), that specifies (along with the other terms specified therein) Telenet International Finance S.à r.L. as the sole Borrower, that the Commitments under that Additional Facility X Accession Agreement are denominated in euros, to be drawn in euros and with the same Final Maturity Date, Margin and commitment fee as specified in this Agreement.

		
	(b)
	For the purposes of this paragraph 22 (unless otherwise specified), references to each Telenet Additional Facility X Lender and Revolving Loan X Facility Loans shall include Lenders and Loans made under any such further Additional Facility X Accession Agreement.

		
	(c)
	Where any Revolving Loan X Facility Loan has not already been consolidated with any other Revolving Loan X Facility Loan, on the last day of any Term for that unconsolidated Revolving Loan X Facility Loan, that Revolving Loan X Facility Loan will be consolidated with any other Revolving Loan X Facility Loan which has a Term ending on the same day as that unconsolidated Revolving Loan X Facility Loan, and all such Revolving Loan X Facility Loans will then be treated as one Loan under the Revolving Loan X Facility. 

		
	23.
	For the purposes of any amendment or waiver, consent or other modification (including, with respect to any existing Default or Event of Default) that may be sought by the Borrower under the Credit Agreement or any other Finance Document on or after the date of this Agreement, the Telenet Additional Facility X Lenders hereby consent to:

		
	(a)
	any and all of the items set out in Schedule 5 (Amendments, waivers, consents and other modifications) of this Agreement; and

		
	(b)
	any consequential amendment, waiver, consent or other modification, whether effected by one instrument or through a series of amendments, to the Credit Agreement or any other Finance Document to be made either to implement the changes envisaged in Schedule 5 (Amendments, waivers, consents and other modifications) of this Agreement or to conform any Finance Document to Schedule 5 (Amendments, waivers, consents and other modifications) of this Agreement; and/or

		
	(c)
	any other amendment, waiver, consent or modification, whether effected by on instrument or through a series of amendments, to the Credit Agreement or any other Finance Document to be made to conform any Finance Document to any Liberty Global Reference Agreement,

(and this Agreement shall constitute each Telenet Additional Facility X Lenders' irrevocable and unconditional written consent for the purposes of Clause 26 (Amendments and Waivers) of the Credit 

	
			
	 

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Agreement or Clause 21 (Remedies, Waivers, Amendments and Consents) of the Intercreditor Agreement without any further action required on the part of any Party).
		
	24.
	We hereby acknowledge and agree that the Facility Agent may, but shall not be required to, send us any further formal amendment request in connection with all, or any of the proposed amendments set out under Clause 23 above and the Facility Agent shall be authorised to consent on our behalf, as a Lender under one or more Telenet Additional Facilities, to any such proposed amendments set out under Clause 23 above, and such consent shall be taken into account in calculating whether the Majority Lenders, or the relevant requisite Lenders, have consented to the relevant amendments and/or waiver to the Credit Agreement in accordance with Clause 26 (Amendments and Waivers) of the Credit Agreement

		
	25.
	The Telenet Additional Facility X Lenders hereby waive receipt of any fee in connection with the consent in Clause 23 above, notwithstanding that other consenting Lenders under the Credit Agreement may be paid a fee in consideration of such Lenders’ consent to any or all of the foregoing amendments, waivers or other modifications.

		
	26.
	The Borrower confirms, on behalf of itself and each other Obligor, that the representations and warranties set out in Clause 16 (Representations and Warranties) of the Credit Agreement (except for Clauses 16.7 (Authorisations), 16.9 (No material adverse change), 16.10 (Litigation and insolvency proceedings), 16.11 (Business Plan), 16.12 (No misleading information), 16.13 (Tax Liabilities), 16.14 (Security Interests), 16.17 (Ownership of assets), and 16.19 (ERISA)) are true and correct as if made at the Effective Date with reference to the facts and circumstances then existing, and as if each reference to the Finance Documents includes a reference to this Agreement.

		
	27.
	Each of the Obligors further represents and warrants on the Effective Date that the execution and delivery by it of this Agreement and the performance of the transactions contemplated by this Agreement will not violate any agreement or instrument to which it is a party or which is binding upon it or any member of the Group or any of its assets or any member of the Group’s assets, where such violation would or is reasonably likely to have a Material Adverse Effect.

		
	28.
	Each of the Guarantors confirm that its obligations under Clause 15 (Guarantee and Indemnity) of the Credit Agreement and each of the Existing Security Providers confirms that the Security Interests created pursuant to the Security Documents and its obligations under the Finance Documents, shall continue unaffected and that such obligations extend to the Total Commitments as increased by the addition of the Revolving Loan X Facility and that such obligations shall be owed to each Finance Party including the Telenet Additional Facility X Lenders.

		
	29.
	Each Telenet Additional Facility X Lender confirms to each Finance Party that:

		
	(a)
	it has made 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 the Credit Agreement and has not relied on any information provided to it by a Finance Party in connection with any Finance Document; and

		
	(b)
	it will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Telenet Additional Facility Commitment is in force.

		
	30.
	Each of the Telenet Additional Facility X Lenders agrees that without prejudice to Clause 27.4 (Procedure for transfer by way of novation) of the Credit Agreement, each New Lender (as defined in 

	
			
	 

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either Transfer Certificate referred to below) shall become, by the execution by the Facility Agent of a Transfer Certificate substantially in the form of either Schedule 3 or Schedule 4, as applicable, to this Agreement, bound by the terms of this Agreement as if it were an original party hereto as a Telenet Additional Facility X Lender and shall acquire the same rights, grant the same consents and assume the same obligations towards the other parties to this Agreement as would have been acquired, granted and assumed had the New Lender been an original party to this Agreement as a Telenet Additional Facility W Lender.
		
	31.
	The Facility Office and address for notices of each Telenet Additional Facility X Lender for the purposes of Clause 33.2 (Contact details) of the Credit Agreement will be that notified by each Telenet Additional Facility X Lender to the Facility Agent.

		
	32.
	For the purposes of the Revolving Loan X Facility and any Revolving Loan X Facility Loan, and notwithstanding any provision of a Finance Document to the contrary:  

		
	(a)
	The following defined terms shall have the following meanings in the Finance Documents:

Luxembourg means the Grand Duchy of Luxembourg;
Luxembourg Guarantor means a Guarantor incorporated in Luxembourg; and
Luxembourg Obligor means an Obligor incorporated in Luxembourg.
		
	(b)
	Where they relate to a Luxembourg company, references in the Finance Documents to: 

		
	(i)
	a winding-up, administration or dissolution includes, without limitation, bankruptcy (faillite), insolvency, voluntary or judicial liquidation (liquidation volontaire ou judiciaire), composition with creditors (concordat préventif de faillite), reprieve from payment (sursis de paiement), controlled management (gestion contrôlée), fraudulent conveyance (actio pauliana), general settlement with creditors, reorganisation or similar laws affecting the rights of creditors generally; 

		
	(ii)
	a receiver, administrative receiver, administrator or the like includes, without limitation, a juge délégué, commissaire, juge-commissaire, liquidateur or curateur; 

		
	(iii)
	a security interest includes any hypothèque, nantissement, gage, privilege, sûreté réelle, droit de rétention and any type of real security or agreement or arrangement having a similar effect and any transfer of title by way of security; and 

		
	(iv)
	a person being unable to pay its debts includes that person being in a state of cessation of payments (cessation de paiements).

		
	(c)
	Any guarantee given by any Luxembourg Guarantor does not constitute a suretyship (cautionnement) in the sense of articles 2011 and subsequent of the Luxembourg civil code.

		
	(d)
	The maximum liability of any Luxembourg Guarantor under the Finance Documents shall be limited so that the maximum amount payable by the relevant Luxembourg Guarantor for the obligations of any Obligor, which is not a direct or indirect Subsidiary of such Luxembourg Guarantor, hereunder shall at no time exceed the Maximum Amount.

Maximum Amount of any Luxembourg Guarantor means the sum of an amount equal to the aggregate (without duplication) of: 

	
			
	 

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	(i)
	all moneys received by that Luxembourg Guarantor or direct or indirect Subsidiaries of that Luxembourg Guarantor (which are direct or indirect Subsidiaries of that Luxembourg Guarantor on the date hereof or which will be direct or indirect Subsidiaries of that Luxembourg Guarantor hereafter) as borrower under or pursuant to the Finance Documents; and 

		
	(ii)
	the aggregate amount of the outstanding intercompany loans made to the Luxembourg Guarantor or direct or indirect Subsidiaries of that Luxembourg Guarantor (which are direct or indirect Subsidiaries of that Luxembourg Guarantor on the date hereof or which will be direct or indirect Subsidiaries of that Luxembourg Guarantor hereafter) by other members of the Telenet Group which have been funded with moneys received by the Borrower under the Finance Documents (the Loan Amount); and

		
	(iii)
	an amount equal to 95 per cent. of the greater of: 

		
	(A)
	the market value of the assets of the Luxembourg Guarantor at the time the guarantee is called less the Liabilities, other than the Loan Amount, at the time the guarantee is called; and 

		
	(B)
	the market value of the assets of the Luxembourg Guarantor at the date of this Agreement less the Liabilities, other than the Loan Amount, at the time the guarantee is called. 

Liabilities means all existing liabilities (other than any liabilities owed to the direct or indirect shareholders of the Luxembourg Guarantor) incurred, from time to time, by the Luxembourg Guarantor and as reflected, from time to time, in the books of the Luxembourg Guarantor. 
If the Parties fail to reach an agreement as to the market value of the assets as referred to under paragraph (d)(iii) above, such market value shall be determined, at the sole costs of the Luxembourg Guarantor (provided such costs are properly and reasonably incurred), by (1) an independent investment bank appointed for this purpose by the Finance Parties or (2) a Luxembourg réviseur d’entreprises agrée appointed upon the request of any of the Finance Parties.
		
	(e)
	Telenet International Finance S.à r. L. hereby expressly accepts and confirms, for the purposes of articles 1281 and 1278 of the Luxembourg Civil Code, that notwithstanding any assignment, transfer and/or novation permitted under, and made in accordance with the provisions of this Agreement or the Finance Documents, the guarantee given by it guarantees all obligations of each Luxembourg Obligor (including without limitation, all obligations with respect to all rights and/or obligations so assigned, transferred or novated) and any security created under this Agreement or the Finance Documents shall be preserved for the benefit of any New Lender and each Luxembourg Obligor hereby accepts and confirms the aforementioned.

		
	(f)
	Qualifying Lender means a Lender which is not an individual or a residual entity within the meaning of the Luxembourg laws implementing the European Council Directive 2003/48/EC of 3 June 2003 (the "EU SD") on taxation of savings income in the form of interest payments, including notably the Luxembourg laws of 21 June 2005 implementing under Luxembourg law the EU SD and the Luxembourg law of 23 December 2005 creating a final withholding tax on certain income deriving from savings, and any entity which may fall within the scope of the EU SD as it may be amended from time to time.

	
			
	 

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	33.
	If a term of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any jurisdiction, that will not affect:

		
	(a)
	the legality, validity or enforceability in that jurisdiction of any other term of this Agreement; or

		
	(b)
	the legality, validity or enforceability in other jurisdictions of that or any other term of this Agreement. 

		
	34.
	This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

		
	35.
	This Agreement may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Agreement by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Agreement.

		
	36.
	This Agreement is a Deed of Accession for the purposes of Clause 20.7 of the Intercreditor Agreement.

THIS AGREEMENT is executed and delivered as a Deed on the date stated at the beginning of this Agreement. 

	
			
	 

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SCHEDULE 1
TELENET ADDITIONAL FACILITY X LENDERS AND REVOLVING LOAN X FACILITY COMMITMENTS

	
		
	Telenet Additional Facility X Lender
	Revolving Loan X Facility Commitment
(€)

	 
	 

	Telenet Luxembourg Finance Center S.à r.L.
	118,675,439

	Credit Suisse AG, London Branch
	30,000,000

	Deutsche Bank AG, London Branch
	30,000,000

	Goldman Sachs Bank USA
	30,000,000

	ING Belgium NV/SA
	15,000,000

	Scotiabank Europe Plc
	27,000,000

	Societe Generale, London Branch
	15,000,000

	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	3,000,000

	The Royal Bank of Scotland plc, Belgium Branch
	17,324,561

	 
	 

	Total
	286,000,000

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	
			
	 

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SCHEDULE 2
CONDITIONS PRECEDENT DOCUMENTS
		
	1.
	Obligors

		
	(a)
	A copy of the articles of association of each Obligor and each Existing Security Provider.

		
	(b)
	A copy of a resolution of the board of directors of each Obligor and each Existing Security Provider approving the terms of, and the transactions contemplated by, this Agreement and any other Finance Documents to which it is, or will become, a party.

		
	(c)
	A specimen of the signature of each person authorised on behalf of an Obligor and each Existing Security Provider to execute or witness the execution of this Agreement and any other Finance Document or to sign or send any document or notice in connection with this Agreement and any other Finance Document.

		
	(d)
	An up-to-date extract from the Luxembourg Trade and Companies Register in respect of the Borrower.

		
	(e)
	A up-to-date negative certificate (certificat de non-inscription d'une decision judicaire) issued by the Luxembourg Trade and Companies register in respect of the Borrower.

		
	(f)
	A copy of the minutes of the shareholders' meeting of each Belgian Obligor and each Belgian Existing Security Provider (except for Telenet Group Holding NV and Telenet Service Center BVBA):

		
	(i)
	approving for the purposes of article 556 of the Belgian Companies Act, the terms of and transactions contemplated by this Agreement; and

		
	(ii)
	authorising named persons to fulfil the formalities with the Registry of the Commercial Court of the registered office of such Obligor or Existing Security Provider following the decision taken in accordance with the above.

		
	(g)
	A certificate of an authorised signatory of the Borrower:

		
	(i)
	confirming that utilising the Total Commitments (including the Revolving Loan X Facility Commitments) in full would not breach any limit binding on any Obligor; and

		
	(ii)
	certifying that each copy document specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

		
	(h)
	Evidence that the agent of the Borrower under the Finance Documents for service of process in England has accepted its appointment.

		
	(i)
	Evidence required by the Finance Parties for the purpose of any applicable money laundering regulations.

		
	2.
	Legal opinions

		
	(a)
	A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed to the Finance Parties.

		
	(b)
	A legal opinion of Allen & Overy LLP, Belgian legal advisers to the Facility Agent, addressed to the Finance Parties.

	
			
	 

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	(c)
	A legal opinion of Allen & Overy, société en commandite simple (Luxembourg), Luxembourg legal advisers to the Facility Agent, addressed to the Finance Parties.

	
			
	 

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SCHEDULE 3
TRANSFER CERTIFICATE (CASH)
		
	To:
	The Bank of Nova Scotia as Facility Agent and Telenet International Finance S.à r.L. as Borrower

		
	From:
	[THE EXISTING LENDER] and [THE NEW LENDER]

Date:                                  2014
Telenet NV - credit facilities agreement dated August 1, 2007 (as amended and restated from time to time), by and among Telenet NV and The Bank of Nova Scotia (originally BNP Paribas and then Toronto Dominion (Texas) LLC) as facility agent and KBC Bank NV as security agent (the Credit Agreement)
Terms defined in the Credit Agreement have the same meanings when used in this letter, or, if not defined in the Credit Agreement, the Telenet Additional Facility X Accession Agreement (as defined below), have the same meaning in this Transfer Certificate.
We refer to: 
		
	(a)
	Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement;

		
	(b)
	Clause 20.3 (Transfers by Finance Parties) of the Intercreditor Agreement; and

		
	(c)
	the Telenet Additional Facility Accession Agreement dated [l] 2014, pursuant to which a €[l] revolving credit facility is made available to the Borrower as a Telenet Additional Facility (Revolving Loan X Facility) under the Credit Agreement (the Telenet Additional Facility X Accession Agreement).

		
	1.
	We, [     ] (the Existing Lender) agree to novate and we, [     ] (the New Lender) agree to accept novation of all the Existing Lender's rights and obligations referred to in the Schedule on and from the Effective Date in accordance with Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement and Clause 20.3 (Transfers by Finance Parties) of the Intercreditor Agreement.

		
	2.
	The New Lender confirms that it is bound by the terms of the Telenet Additional Facility X Accession Agreement from the Effective Date as if it were an original party thereto as a Telenet Additional Facility X Lender and shall acquire the same rights, grant the same consents and assume the same obligations towards the other parties to the Telenet Additional Facility X Accession Agreement as would have been acquired, granted and assumed had the New Lender been an original party to the Telenet Additional Facility X Accession Agreement as a Telenet Additional Facility X Lender.

		
	3.
	For the purposes of Articles 1278 and 1281 of the Luxembourg Civil Code and Article 1278 of the Belgian Civil Code, each of the Existing Lender, the Facility Agent and the New Lender agree that the Security Documents will be preserved for the benefit of the New Lender in accordance with Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement. 

		
	4.
	The New Lender represents on the date of this Transfer Certificate that it is a Qualifying Lender.

		
	5.
	This certificate shall take effect on the date of this certificate.

		
	6.
	For the purposes of this Transfer Certificate, “Effective Date” means the date specified under the Facility Agent's name in the relevant signature page to this Transfer Certificate.

	
			
	 

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	7.
	Each party to this document agrees, the Facility Agent agrees on behalf of each Finance Party, and Telenet NV agrees on behalf of each Obligor, that this document is a Transfer Certificate notwithstanding that its form is different to that required by the Credit Agreement.

		
	8.
	This Transfer Certificate is a Finance Document.

		
	9.
	This Transfer Certificate may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Transfer Certificate by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Transfer Certificate.

		
	10.
	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

	
			
	 

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THE SCHEDULE
Rights and obligations to be novated:
EXISTING LENDER
Existing Lender’s Revolving Loan X Facility Commitment: €[l]
Assignee: New Lender
    
NEW LENDER    
Facility Office     
[     ]
Address for notices for administrative purposes
[     ]
Address for notices for credit purposes
[      ]
 

	
			
	 

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[The Existing Lender], as the Existing Lender

By:
Name:
Title:

[The New Lender], as the New Lender

By:
Name:
Title:
 

	
			
	 

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TELENET NV, as Obligors agent

By:
Name:
Title:
 

	
			
	 

	0096349-0000001 BK:27206826.11
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THE BANK OF NOVA SCOTIA, as Facility Agent

By:
Name:
Title:
Date:
The Facility Agent confirms that the Effective Date is the date on which it countersigns this Transfer Certificate.

	
			
	 

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SCHEDULE 4
TRANSFER CERTIFICATE (CASHLESS)
		
	To:
	The Bank of Nova Scotia as Facility Agent and Telenet International Finance S.à r.L. as Borrower

		
	From:
	Telenet Luxembourg Finance Center S.à r.L. and [  ]

Date:                                  2014
Telenet NV - credit facilities agreement dated August 1, 2007 (as amended and restated from time to time), by and among Telenet NV and The Bank of Nova Scotia (originally BNP Paribas and then Toronto Dominion (Texas) LLC) as facility agent and KBC Bank NV as security agent (the Credit Agreement)
Terms defined in the Credit Agreement have the same meanings when used in this letter, or, if not defined in the Credit Agreement, the Telenet Additional Facility X Accession Agreement (as defined below), have the same meaning in this Transfer Certificate.
We refer to: 
		
	(a)
	Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement;

		
	(b)
	Clause 20.3 (Transfers by Finance Parties) of the Intercreditor Agreement; and

		
	(c)
	the Telenet Additional Facility Accession Agreement dated on or about the date of this Transfer Certificate, pursuant to which a revolving credit facility is being made available to the Borrower as a Telenet Additional Facility (Revolving Loan X Facility) under the Credit Agreement (the Telenet Additional Facility X Accession Agreement).

		
	1.
	[           ] (the Existing S Lender) agrees to novate and Telenet Luxembourg Finance Center S.à r.L. (the New S Lender) agrees to accept novation on the Effective Date of all the Existing S Lender's rights and obligations referred to in the Schedule in accordance with Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement and Clause 20.3 (Transfers by Finance Parties) of the Intercreditor Agreement.

		
	2.
	Telenet Luxembourg Finance Center S.à r.L. (the Existing X Lender) agrees to novate and                                         [           ] (the New X Lender) agrees to accept the novation on the Effective Date of all the Existing X Lender's rights and obligations referred to in the Schedule in accordance with Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement and Clause 20.3 (Transfers by Finance Parties) of the Intercreditor Agreement.

		
	3.
	The aggregate Existing Revolving Loan S Facility Commitment will be equal to the aggregate Existing Revolving Loan X Facility Commitment (each term as referred to in the Schedule to this certificate). The Existing S Lender's obligation to transfer the Existing Revolving Loan S Facility Commitment to the New S Lender and the Existing X Lender’s obligation to transfer the Existing Revolving Loan X Facility Commitment to the New X Lender, will each be deemed to be satisfied by the deemed transfer of the other, in each case on the Effective Date.

		
	4.
	The New S Lender confirms that it is bound by the terms of the Telenet Additional Facility S Accession Agreement from the Effective Date as if it were an original party thereto as a Telenet Additional Facility 

	
			
	 

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Lender and shall acquire the same rights and assume the same obligations towards the other parties to the Telenet Additional Facility S Accession Agreement as would have been acquired and assumed had the New S Lender been an original party to the Telenet Additional Facility S Accession Agreement as a Telenet Additional Facility Lender.
		
	5.
	The New X Lender confirms that it is bound by the terms of the Telenet Additional Facility X Accession Agreement from the Effective Date as if it were an original party thereto as a Revolving Loan X Facility Lender and shall acquire the same rights and assume the same obligations towards the other parties to the Telenet Additional Facility X Accession Agreement as would have been acquired and assumed had the New X Lender been an original party to the Telenet Additional Facility X Accession Agreement as a Revolving Loan W Facility Lender.

		
	6.
	For the purposes of Articles 1278 and 1281 of the Luxembourg Civil Code and Article 1278 of the Belgian Civil Code:

		
	(a)
	the Existing S Lender, the Facility Agent and the New S Lender agree that the Security Documents will be preserved for the benefit of the New S Lender, and

		
	(b)
	the Existing X Lender, the Facility Agent and the New X Lender agree that the Security Documents will be preserved for the benefit of the New X Lender,

in each case in accordance with Clause 27.4 (Procedure for transfer by way of novations) of the Credit Agreement. 
		
	7.
	The New S Lender and the New X Lender each represents on the date of this Transfer Certificate that it is a Qualifying Lender.

		
	8.
	This certificate shall take effect on the date of this certificate.

		
	9.
	For the purposes of this Transfer Certificate, “Effective Date” means the date specified under the Facility Agent's name in the relevant signature page to this Transfer Certificate.

		
	10.
	Each party to this document agrees, the Facility Agent agrees on behalf of each Finance Party, and Telenet NV agrees on behalf of each Obligor, that this document is a Transfer Certificate notwithstanding that its form is different to that required by the Credit Agreement.

		
	11.
	This Transfer Certificate is a Finance Document.

		
	12.
	This Transfer Certificate may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Transfer Certificate by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Transfer Certificate.

		
	13.
	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

	
			
	 

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THE SCHEDULE
Rights and obligations to be novated:
1.    Existing S Lender
Existing Revolving Loan S Facility Commitment: €
Transferee: New S Lender
    
2.    Existing X Lender
Existing Revolving Loan X Facility Commitment: €
Transferee: New X Lender

	
			
	 

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TELENET LUXEMBOURG FINANCE CENTER S.À R.L., as the New S Lender

By:
Name:
Title:

TELENET LUXEMBOURG FINANCE CENTER S.À R.L., as the Existing X Lender

By:
Name:
Title:

 

	
			
	 

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                                                                                                                , as the Existing S Lender

By:
Name:

                                                                                                                     , as the New X Lender

By: 
Name:

 

	
			
	 

	0096349-0000001 BK:27206826.11
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TELENET NV, as Obligors agent

By:
Name:
Title:
 

	
			
	 

	0096349-0000001 BK:27206826.11
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THE BANK OF NOVA SCOTIA, as Facility Agent

By:
Name:
Title:
Date:
The Facility Agent confirms that the Effective Date is the date on which it countersigns this Transfer Certificate.
 

	
			
	 

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SCHEDULE 5
AMENDMENTS, WAIVERS, CONSENTS AND OTHER MODIFICATIONS
All references to Clauses, Paragraphs, Schedules and definitions contained in this Schedule 4 are to Clauses, Paragraphs, Schedules and definitions of the Credit Agreement. All capitalised terms used in this Schedule but not defined shall have the meanings given to such terms in the Credit Agreement.
In this Schedule, references to "recent Liberty precedent" shall be construed to mean any Liberty Global Reference Agreement.
		
	1.
	Business: amend the definition of Business to include the provision, creation, distribution and broadcasting of content as set out in recent Liberty precedents.

		
	2.
	Consolidated Cash and Cash Equivalents: amend the definition of Consolidated Cash and Cash Equivalents, to bring it substantially in line with and/or by reference to clauses and language used in recent Liberty precedents and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market and in particular:

		
	(a)
	include the following as additional limbs to such definitions:

		
	(i)
	marketable general obligations issued by any political subdivision of governments (consistent with recent Liberty precedent) which when acquired had a credit rating of A- or higher from either Standard & Poor’s Rating Services or Fitch Ratings Ltd or A3 or higher by Moody’s Investors Service Limited; and

		
	(ii)
	repurchase obligations with a term of not more than seven days from certain types of underlying securities entered into with an acceptable bank; and

		
	(b)
	amend the definition of acceptable bank contained in the definition of Consolidated Cash and Cash Equivalents such than any acceptable bank has a rating of  “BBB+” and “Baa1” respectively.

		
	3.
	Optional Currencies:  amend the Credit Agreement to provide that the Revolving Facility Commitments may also be utilised in currencies other than EUR on the basis set out in recent Liberty precedent which contain a revolving credit facility.

		
	4.
	LIBOR: amend the definition of LIBOR to provide for the replacement of the British Bankers’ Association by the ICE Benchmark Administration as the administrator of LIBOR, together with other amendments by reference to clauses and language used in recent Liberty precedents and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	5.
	Financial Indebtedness: amend the definition of Financial Indebtedness as follows:

		
	(a)
	replacing the provision in respect of deferred payments with deferral of payments for assets acquired or services supplied to refer to a deferral of 180 days (or 360 days if such deferral is in accordance with the relevant purchase terms) and to add a reference to “the relevant invoice date” as an alternative to the relevant acquisition or supply date and deleting the associated limb (m) of Permitted Financial Indebtedness;

		
	(b)
	by excluding the following items from the definition:

	
			
	 

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	(i)
	cash-collateralised indebtedness;

		
	(ii)
	indebtedness having the nature of equity (other than redeemable shares); 

		
	(iii)
	any deposits or prepayments received by any member of the Group from a customer or subscriber for its service;

		
	(iv)
	limb (d) relating to obligations under finance leases and hire purchase contracts; and otherwise exclude obligations in respect of finance leases or capital leases;

		
	(v)
	any indebtedness in respect of any transactions relating to transfers of receivables (and related assets) to asset securitisation Subsidiaries or by an asset securitisation Subsidiary to any other person, or the grant of security in respect of such receivables or related assets, in connection with any asset securitization programmes or receivables factoring transactions; and

		
	(vi)
	any parallel debt obligations to the extent such obligations mirror other Financial Indebtedness. 

		
	6.
	Majority Lenders: amend Clause 1.1 of the Credit Agreement to reduce the fractions specified in the definitions of Majority Lenders, from two thirds or more (for any or all purposes under the Credit Agreement or any other Finance Document (including for the purposes of any Telenet Additional Facility)) to more than 50.00% and to exclude the available commitments of defaulting lenders for the purposes of amendments or waivers.

		
	7.
	Super Majority Lenders: amend Credit Agreement to provide for a definition of Super Majority Lenders so that amendments and waivers in respect of the release of any guarantee or security only requires the consent of Lenders representing 90.00% of Commitments.

		
	8.
	Voting on cancelled and prepaid participations: amend the Credit Agreement to provide that a Commitment and a Loan (and any participation therein) as set forth in Clause 1.1 (Definitions) of the Credit Agreement shall be deemed to be cancelled or prepaid (with respect to any Telenet Additional Facility Commitment) and not outstanding (with respect to any Loan) for purposes of voting or consents (other than any vote or consent related to the non-payment of such Loan) under the Credit Agreement if the Company has delivered to the Facility Agent a cancellation or prepayment notice with respect to such Telenet Additional Facility Commitment or Loan; provided that any such Loan shall remain due and payable on the applicable prepayment date and, if not repaid in full on the applicable prepayment date, then all voting or consent rights with respect thereto shall be reinstated with retroactive effect from the date of delivery of such cancellation or prepayment notice. 

		
	9.
	Interpolation: amend the Credit Agreement to provide for an interpolated screen rate in line with European leverage loan precedents and recent Liberty precedents and amend the definitions of EURIBOR and LIBOR accordingly.

		
	10.
	Mandatory Costs: delete all references in the Credit Agreement to Mandatory Costs and any related provisions.

		
	11.
	Increase: amend Clause 2 (Facilities) to provide for the ability to increase Commitments under a Facility by increasing a Lender’s Commitments with that Lender’s consent or by including new Commitments of any bank, financial institution, trust, fund or any other entity selected by the Company, including (but without limitation) the ability to increase the Commitments in an amount equal to the 

	
			
	 

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amount of any commitments cancelled as a result of (i) illegality, or (ii) Commitments cancelled as a result of the relevant Lender becoming a defaulting lender. Amend to permit the Company to pay a fee to any increase Lender.
		
	12.
	Telenet Additional Facilities: amend Paragraph (e) of Clause 2.7 (Telenet Additional Facility) to remove the requirements: (i) that the average maturity of the Telenet Additional Facility can be no earlier than 31 July 2017; and (ii) to comply with certain ratio levels and provide instead that, as a condition to any utilisation of such Telenet Additional Facility: (a) the ratio of Net Senior Secured Debt (to be defined in accordance with recent Liberty precedent) to Consolidated Annualised EBITDA would not be greater than 4.00:1, as a result of any such utilisation (taking into account in each case the Revolving Facility Excluded Amount (as defined below)). In addition, expressly permit the Company to pay a fee to any Telenet Additional Facility Lender. 

		
	13.
	Documentary Credits: amend the Credit Agreement to permit utilisation of the Revolving Facility by way of letters of credit, bank guarantees, indemnity, performance bonds and other documentary credits.

		
	14.
	Ancillary Facilities: amend the Credit Agreement to provide for an ability to incur bilateral ancillary lines with a Lender (with the consent of that Lender) as a carve-out to the Revolving Facility Commitments.

		
	15.
	Rollover Loans: amend Clause 6.6 (Repayment of Revolving Loans) to clarify that, to the extent a Borrower is due to repay (in full or in part) a Revolving Loan on the same day on which such Borrower has also requested a Revolving Loan in the same currency and in the same or a lesser amount, a rollover of such Rollover Loan shall be effected on a cashless basis.

		
	16.
	Change of Control: amend Clause 7.2 (Mandatory prepayment – change of control) to extend the requirement to repay so that it falls 30 Business Days after the date of the notice from the Facility Agent and amend such Clause and the definition of Change of Control to reflect a recent Liberty precedent, including the ability to effect a post-closing reorganization and a spin-off without triggering a mandatory prepayment thereunder.

		
	17.
	Cancellation: amend Clause 7.9 (Right of repayment and cancellation of a single Lender) (i) to provide for the transfer in full and at par (in addition to the right of repayment and cancellation) of the Commitment and participation in a Utilisation of a single Lender to another Lender; and (ii) to provide that the right to repay, cancel or transfer also arises in respect of a Lender’s Commitment or participation in a Utilisation where that Lender invokes the market disruption clause.

		
	18.
	Notice of Prepayment or Cancellation: amend Clause 7.12(a) (Miscellaneous provisions) to provide that a notice of prepayment or cancellation may be conditional and be revoked provided that a Borrower has, within 10 Business Days, indemnified any Lender in respect of such Lender’s Break Costs if the prepayment or cancellation does not occur as notified and the notice period can be reduced with the consent of the Majority Lenders under the relevant Facility.  The definition of Break Costs will be amended to include a Lender’s losses as a result of having to unwind any related funding contract (which it had entered into or initiated upon receipt of such notice) as a result of the revocation of a notice of prepayment or cancellation.

		
	19.
	Interest on Term Loan and Revolving Loan Advances: amend Clause 9.1 (Selection – Term Loans) and Clause 9.2 (Selection - Revolving Loans) to permit interest periods to be any period from 1, 2, 3 or 6 months or such other period of up to 12 months (for Revolving Loans and for Term Loans) or as the Majority Lenders under the relevant Facility may agree and in addition and for Revolving Loans only any period between 1 day and 30 days.

	
			
	 

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	20.
	Mandatory Prepayment from Disposals Proceeds: amend Clause 7.3 (Mandatory Prepayment from Disposal Proceeds) and 7.4 (Date for prepayment) to require prepayment of disposal proceeds only to the extent required to ensure compliance with the Total Net Debt maintenance financial covenant, exclude any proceeds from any other Permitted Disposal other than the general Permitted Disposals basket, remove the requirement to transfer disposal proceeds to a blocked account pending reinvestment and include a de minimis threshold of the greater of €200,000,000 and 5% of total assets and increase the reinvestment period from 12 months to 18 months (provided the disposal proceeds have been contracted to be reinvested within 12 months of the relevant Permitted Disposal) (and subject to the proviso that the financial covenant discussed above shall be retested at the end of such period and proceeds shall then be prepaid to the extent required to ensure compliance in line with recent Liberty precedent). 

		
	21.
	Qualifying Lender Representation: amend Clause 11 (Taxes) to:

		
	(a)
	include an obligation on each Lender to notify the Company as soon as such Lender ceases to be a Qualifying Lender (except if caused by a change in Tax law); 

		
	(b)
	include an obligation on each Lender to co-operate with the Company and to provide the Company with such information as the Company reasonably requests to determine whether a Lender has ceased to be a Qualifying Lender; 

		
	(c)
	include an obligation on each Lender to certify its Qualifying Lender status in any relevant transfer certificate, increase confirmation or additional facility accession; and

		
	(d)
	limit the Qualifying Lender provision in respect of any Facility advanced to an entity incorporated in Belgium, so that no entity that is subject to withholding tax may become a Lender under such tranche without the consent of the Company.

		
	22.
	Increased Costs: amend Clause 12.2 (Exceptions) to include:

		
	(a)
	costs attributable to gross negligence or wilful breach by a Finance Party; 

		
	(b)
	costs not notified within 30 days of a Finance Party becoming aware; 

		
	(c)
	FATCA deductions; and 

		
	(d)
	Bank Levies to the extent not more onerous than existing actual or draft laws (as applicable). 

		
	23.
	Tax: amend Clause 11 (Taxes) to provide that the Finance Parties and the Borrower shall cooperate in good faith to complete any procedural steps to allow the Borrower to make payments free without withholding or deduction for taxes and each Finance Party will provide information requested by the Borrower in order for the Borrower to be exempt from withholding or deduction for any taxes under any applicable international treaty and in connection with FATCA and any applicable reporting requirements under FATCA and to include any provisions (which are not materially adverse to the interests of the Lenders) required to accommodate an acceding Additional Borrower incorporated in a jurisdiction other than Belgium, the Netherlands, Luxembourg and the United States. The Borrower will not be liable under any tax gross up or tax indemnity provisions in respect of any FATCA deductions.

		
	24.
	VAT: amend Clause 11.7 (Value Added Taxes) to provide that where an Obligor is required to make any payment in connection with Clause 11.7 (Value Added Taxes), such amount shall not become due until the Obligor has received a formal invoice detailing the VAT to be paid.

	
			
	 

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	25.
	Market Disruption: amend the Credit Agreement to include market disruption provisions and the provision of alternative interest rates in accordance with recent Liberty precedents and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market.

		
	26.
	Group: amend the definition of Group to exclude unrestricted subsidiaries, dormant subsidiaries that are not guarantors, project companies (as defined in accordance with a recent Liberty precedent), asset securitisation subsidiaries (as defined in accordance with a recent Liberty precedent) and entities that become subsidiaries as a result of an asset passthrough. 

		
	27.
	Permitted Affiliate Parent: amend the Credit Agreement in line with recent Liberty precedent to provide an ability to acquire Affiliates that are not Subsidiaries of the Parent but are Subsidiaries of another Affiliate common holding company that is not a member of the Group (the holding entity of the acquired group being the “Permitted Affiliate Parent”) and to allow conforming changes including the ability to designate (subject to certain deliverables in accordance with recent Liberty precedents) any new holding company, or as applicable, any member of the new Group as the common holding company of the Group for the purposes of, amongst other things, the definitions of Change of Control, Restricted Payments and Permitted Payments and in respect of financial statements and provide an ability for the Company to deliver financial statements that are consolidated at the level of the common holding company provided that the Company also delivers a Group reconciliation.

		
	28.
	Unrestricted Subsidiaries:  adopt the concept of unrestricted subsidiaries from recent Liberty precedents (and remove the concept of Non-Recourse Subsidiary) so that, amongst other things, unrestricted subsidiaries can be designated from time to time and not just prior to the relevant entity becoming a subsidiary.

		
	29.
	Representations: remove Clause 16.11 (Business Plan), 16.18 (Material Contracts) and paragraph (c) of Clause 16.16 (Environmental laws); and amend Clause 16.23(a) (Times for making representations and warranties) to exclude Clauses 16.5 (Non-conflict) 16.6 (No Event of Default) 16.7 (Authorisations) 16.16 (Environmental) 16.20 (United States Regulation) 16.21 (Anti-Terrorism Laws) from the representations and warranties deemed repeated under that clause. 

		
	30.
	Information: 

		
	(a)
	amend Clause 17.1 (Financial statements) to provide that to the extent financial statements are filed on a public register or published on the Company’s website they shall be deemed supplied to the Facility Agent;

		
	(b)
	amend the Credit Agreement to remove requirement to prepare budgets under Clause 17.4 (Budgets);

		
	(c)
	amend Clause 17.5 (Information – miscellaneous) to provide for delivery of information by the Company to the Lenders (who have not objected) by posting to a designated website or email address;

		
	(d)
	amend Clause 17.6(b) (Notification of Default) to provide that certificate of no Default requested by the Facility Agent may be signed by an authorised officer of the Company; 

		
	(e)
	amend Clause 17.7 (Inspection rights) to provide that the Facility Agent may only inspect the properties of the Group whilst there is an Event of Default continuing or the Facility Agent has reasonable grounds to believe that an Event of Default may exist or other reasonable grounds; and

	
			
	 

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	(f)
	amend Clause 28 (Disclosure of Information) (i) to apply to information of any member of the Group; (ii) to survive 12 months from the earlier of the date the Commitments have been repaid or cancelled in full and (in respect of that Finance Party only) the date a Finance Party resigns; and (iii) to reflect such clauses and language used in recent Liberty precedents as the company considers beneficial.

		
	31.
	Financial Covenants:

		
	(a)
	amend the definition of Consolidated EBITDA, at the Company’s option to provide that the starting point for Consolidated EBITDA may be operating income and/or, at the Company’s option, to include the following limbs as add backs or deductions to that definition:

		
	(i)
	depreciation;

		
	(ii)
	amortisation;

		
	(iii)
	one-off reorganization or restructuring charges;

		
	(iv)
	non-cash charges;

		
	(v)
	direct or related acquisition, disposal, recapitalization, debt incurrence or equity offering costs;

		
	(vi)
	losses or gains on the sale of operating assets; 

		
	(vii)
	non-recurring, exceptional, extraordinary, one-off or unusual items;

		
	(viii)
	the effects of adjustments under IFRS or GAAP attributable to the application of recapitalization accounting or acquisition accounting in relation to any merger, acquisition or joint venture investment and adjustments to reduce the impact of any change in accounting principles and changes as a result of the adoption or modification of accounting policies;

		
	(ix)
	accrued management fees (whether or not paid) and any permitted holding company expenses;

		
	(x)
	specified legal expenses (and include a definition as per recent Liberty precedents);

		
	(xi)
	any stock-based compensation expense;

		
	(xii)
	the amount of loss on the sale of any assets in connection with asset securitisation programme or receivables factoring transaction;

		
	(xiii)
	net earnings or losses attributable to non-controlling interests;

		
	(xiv)
	share of income or loss on equity investments;

		
	(xv)
	deferred financing cost written off and premiums paid to extinguish debt early;

		
	(xvi)
	unrealised gains/losses in respect of hedging;

		
	(xvii)
	tangible or intangible asset impairment charges;

	
			
	 

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	(xviii)
	capitalised interest on Subordinated Shareholder Loans; 

		
	(xix)
	accruals and reserves established or adjusted within twelve months after the closing date of any acquisition required to be established or adjusted in accordance with GAAP;

		
	(xx)
	any expense to the extent covered by insurance or indemnity and actually reimbursed;

		
	(xxi)
	any realized and unrealized gains and losses due to changes in the fair value of equity investments; and

		
	(xxii)
	any up-front installation fees associated with commercial contract installations completed during the applicable reporting period (less any portion of such fees included in earnings);

		
	(xxiii)
	any fees or other amounts charged or credited to the Company’s and the guarantors related to intra-Group services may be excluded to the extent such fees or other amounts (i) are not included in the Company’s externally reported operating cash flow or equivalent measure or (ii) are deemed to be exceptional or unusual item; and

		
	(xxiv)
	to the extent not already included in operating income, the amount received from business interruption insurance and reimbursements of any expenses covered by indemnification or other reimbursement in connection with a permitted acquisition, investment or disposal of assets.

		
	(b)
	amend the definition of Consolidated Total Borrowings, in each case, to exclude from such definitions:

		
	(i)
	borrowings of unrestricted subsidiaries (as such subsidiaries are defined in recent Liberty precedents);

		
	(ii)
	intra-group borrowings; 

		
	(iii)
	shareholder loans;

		
	(iv)
	excluding the portion of indebtedness of a member of the Group attributable to minority interests;

		
	(v)
	borrowings represented by deposits or prepayments from subscribers/customers;

		
	(vi)
	borrowings of acquired companies that will be discharged within 6 months;

		
	(vii)
	for the avoidance of doubt Financial Indebtedness arising by reason of mark-to-market fluctuations on hedging;

		
	(viii)
	borrowings from holders of equity to the extent advanced pro rata and repayable only on liquidation;

		
	(ix)
	in respect of drawings under any Revolving Facility at the relevant time up to an amount of 0.25 multiplied by Consolidated Annualised EBITDA for the latest Measurement Period (the “Revolving Facility Excluded Amount”); and

		
	(x)
	Financial Indebtedness in respect of any contingent obligations, 

	
			
	 

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any new definition of Net Senior Secured Debt (or similar) shall adopt the same approach as the definition of Total Debt (where applicable), including as outlined above.
		
	32.
	Net Total Debt to Consolidated Annualised EBITDA: amend Clause 18.2 (Net Total Debt to Consolidated Annualised EBITDA) such that the Net Total Debt to Consolidated Annualised EBITDA financial ratio may not be greater than 5.50:1.00 for each Measurement Period (but taking into account the Revolving Facility Excluded Amount for the purposes of calculating debt).

		
	33.
	Interest Cover Covenant: remove the requirement for the Company to ensure that the ratio of Consolidated EBITDA to Total Cash Interest is not less than 2.10:1 contained in Clause 18.3 (Consolidated EBITDA to Total Cash Interest) and remove any other references to such ratio.

		
	34.
	Capital Expenditure Covenant: remove the capital expenditure covenant set out in Clause 19.22 (Capital expenditure) which limits capex spending to being in relation to Permitted Business.

		
	35.
	US Borrowers: remove the covenant in relation to US Borrowers set out in Clause 19.25 (U.S. Borrowers) which limits the activities of and loans to and from US Borrowers.

		
	36.
	Pro forma EBITDA: amend Clause 18.4 (Calculations), so that, for the purposes of testing compliance with the financial ratios set out in Clause 18 (Financial Covenants):

		
	(a)
	the calculations are determined in good faith by a responsible financial or accounting officer and are made on a pro forma basis giving effect to all material acquisitions and disposals made by the Group (including in respect of anticipated expense and cost reductions) and including as a result of, or that would result from, any actions taken, committed to be taken or with respect to which substantial steps have been taken, by the Company or any other member of the Group including in connection with any cost reduction synergies or cost savings plan or program or in connection with any transaction, investment, acquisition, disposition, restructuring, corporate reorganizations or otherwise (regardless of whether these cost savings and cost reduction synergies could then be reflected in pro forma financial statements to the extent prepared);

		
	(b)
	Consolidated EBITDA for such period will be calculated after giving pro forma effect thereto as if such incurrence, repayment, acquisition, discharge or disposal or acquisition occurred on the first day of such period; and

		
	(c)
	interest on any indebtedness that bears interest at a floating rate and that is being given pro forma effect shall be calculated as if the rate in effect on the date of calculation had been applicable for the entire period (taking into account any hedging in respect of such indebtedness).

		
	37.
	Equity Cures: amend Clause 18.5 (Cure provisions):

		
	(a)
	so that the financial ratios set out in Clause 18 (Financial Covenants) may be remedied by deeming that such cure proceeds are (as applicable):

		
	(i)
	added to Consolidated Annualised EBITDA; or

		
	(ii)
	applied to reduce Total Debt or Net Total Debt;

in each case, at the discretion of the Company; and

	
			
	 

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	(b)
	to remove the requirement to repay or prepay the cure proceeds against any of the Facilities or Loans and to clarify that there is no requirement to repay or prepay all or any part of the Facilities or any Loans; and

		
	(c)
	so that an equity cure may be effected up to 15 Business Days following the delivery of the financial statements which showed a breach.

		
	38.
	Material Subsidiaries: amend Clause 18.7 (Material Subsidiaries) so that the Company is required to ensure that the Obligors constitute 80% of the Consolidated EBITDA of the Group and to remove the obligation for each Material Subsidiary to become a Guarantor and amend the definition of Material Subsidiary so that only companies whose Consolidated EBITDA is 5% of the Group constitute Material Subsidiaries.

		
	39.
	Accounting Principles: amend, amongst other provisions, Clauses 17.2 (Form of financial statements), 18.1 (Interpretation) and 18.6 (Determinations) to permit the Company to elect (and to re-elect) to prepare its financial statements in accordance with US GAAP or IFRS; and adjust its financial covenants and definitions accordingly, or retain its existing financial covenants and definitions in each case in accordance with recent Liberty precedent (including provision of a reconciliation where applicable) provided that if a reconciliation is provided following any election to revert back to IFRS the ratios, definitions and financial covenants levels in existence at the original date of the Credit Agreement (updated to reflect any other amendments made since the original date of the Credit Agreement) shall be automatically reinstated.

		
	40.
	Asset Securitisation Subsidiary: amend the Credit Agreement, as per recent Liberty precedent, to permit, amongst other things, acquisitions and investments in respect of asset securitization subsidiaries. An asset securitisation subsidiary is any member of the Group that is engaged solely in the business of effecting or facilitating any asset securitisation programme or programmes or one or more receivables factoring transaction.

		
	41.
	Permitted Disposals: 

		
	(a)
	amend the definition of Permitted Disposal to include:

		
	(i)
	to clarify in limb (f) of such definition that a disposal between a member of the Group (which is not an Obligor) and another member of the Group (which is not an Obligor) also constitutes a Permitted Disposal;

		
	(ii)
	direct or indirect sale (or otherwise) of any part of a present or future undertaking, shares, property, rights or remedies or other assets by one or a series of transactions related or not required by a regulatory authority or court of competent jurisdiction;

		
	(iii)
	disposal of real property if the fair market value in any financial year does not exceed the greater of €50,000,000 and 1% of total assets;

		
	(iv)
	disposals of accounts receivable on arms’ length terms pursuant to an asset securitisation programme or receivables factoring transactions (recourse and non-recourse), provided that the aggregate amount of all such securitisations or receivables factoring transactions does not exceed the greater of €200,000,000 and 5% of Total Assets at any time;

	
			
	 

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	(v)
	disposals of assets pursuant to sale and leaseback transactions where the aggregate fair market value does not exceed the greater of €100,000,000 and 2% of total assets; and

		
	(vi)
	including a general basket by reference to Consolidated Annualised EBITDA set at 17.5% less the deductions and plus the additions (including as a result of reinvestment through acquisitions) as set out in recent Liberty precedents.

		
	(b)
	a new paragraph 19.6(c) such that if a transaction (or any portion) meets the criteria of a Permitted Disposal and also meets the criteria of a Permitted Payment, the Company, in its sole discretion, will be entitled to divide and classify such transaction (or any portion) as a disposal permitted under Paragraph (b) of Clause 19.6 (Disposals) and/or a Restricted Payment permitted under Clause 19.13 (Restricted Payments).

		
	42.
	Asset Passthrough: amend, amongst others, Clauses 19.6 (Disposals), 19.7 (Financial Indebtedness), 19.10 (Acquisitions and mergers), 19.13 (Restricted Payments) and 19.15 (Loans and Guarantees) and any related definitions to permit, as per recent Liberty precedents, asset transfers between a holding company of a Borrower and/or any other members of the wider Liberty group (excluding members of the Group) where such assets pass through one or more members of the Group before being finally transferred to the relevant holding company or wider Liberty group member (as applicable), subject to certain restrictions.

		
	43.
	Project Companies: amend the Credit Agreement to permit, as per recent Liberty precedents, amongst other things (a) the disposal of shares or other interests (including shareholder loans) in any special purpose company or its holding company whose creditors have no recourse to any member of the Group (except to the extent of any security granted over such shares or other interests) and (b) the grant of security over the shares or other interests in, or the assets of, such special purpose company (or its holding company).

		
	44.
	Content Transactions: amend the Credit Agreement, as per recent Liberty precedent, such that, amongst other things:

		
	(a)
	an amount (being the greater of €200,000,000 and 5% of total assets) of net proceeds are not required to be prepaid against the Facilities in mandatory prepayment; and

		
	(b)
	payments (being up to the greater of €200,000,000 and 5% of total assets) in respect thereof will constitute Permitted Payments,

in respect of any sale, distribution or other transaction relating to any broadcasting or distribution rights or images, audio, visual or interactive content provided that no Event of Default is continuing or would occur as a result of such transaction.
		
	45.
	Permitted Acquisition/Permitted Joint Venture: amend the Permitted Acquisition and Permitted Joint Venture provisions to delete any requirement to provide a business plan, acquisition business plan, or other financial projections subject however to retention of a requirement to certify pro forma compliance with the ratio of Net Total Debt to Consolidated Annualised EBITDA being less than or equal to 5.50:1.00; increase time period for deliverables to within 60 days of the acquisition; provide that any certificate required may be signed by an authorized officer of the Company; and make such other conforming changes required to bring in line with recent Liberty precedent.

		
	46.
	Geographic restrictions: (a) delete all jurisdictional restrictions applicable to any Permitted Acquisition, Permitted Joint Venture or Permitted Business; and (b) amend Clause 27.7(b) (Additional 

	
			
	 

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Borrowers) to provide that, in addition to the existing ability for an Additional Borrower incorporated in Benelux and the US to accede (without requiring any Lender consent), to provide an ability to accede Additional Borrowers incorporated in any other jurisdiction with the consent of the Majority Lenders.
		
	47.
	Treasury transactions: amend the Credit Agreement to delete Clause 19.12 (Treasury transactions).

		
	48.
	Holding Companies: amend the Credit Agreement to delete Clause 19.16 (Holding Companies) which restricts Telenet Group Holding N.V. from carrying out any business, owning any asset or incurring any liabilities except for certain limited items and amend Clause 19.10(b)(iii) to expressly permit a merger of any of Telenet Group Holding N.V., Telenet N.V or any of their intermediate holding companies or Telenet Vlaanderen NV with any of Telenet Group Holding N.V., Telenet N.V or Telenet Vlaanderen NV any of their intermediate holding companies subject to compliance with the merger regime in recent Liberty precedents.

		
	49.
	Permitted Financial Indebtedness: amend the definition of Permitted Financial Indebtedness:

		
	(a)
	to include an express reference to any Financial Indebtedness constituting a Permitted Transaction;

		
	(b)
	any Financial Indebtedness in respect of any non-recourse subsidiary;

		
	(c)
	to remove the restriction on not incurring Financial Indebtedness in contemplation of a Permitted Acquisition and the requirement to discharge such Financial Indebtedness within six months of the date of completion of the acquisition;

		
	(d)
	to permit vendor financing arrangements and sale and leaseback transactions provided that the pro forma Net Total Debt to Consolidated Annualised EBITDA is equal to or less than, 5.50:1.00, provided that such vendor financing provider or lessor is not permitted to benefit from any Security Interest other than in respect of the assets subject to such financing arrangements; 

		
	(e)
	to include a provision such that if that Financial Indebtedness meets the criteria of more than one of the types of Permitted Financial Indebtedness in the definition of Permitted Financial Indebtedness, the Company, in its sole discretion, may classify such item of Financial Indebtedness on the date of its incurrence and shall only be required to include the amount and type of such Financial Indebtedness in one of the limbs of that definition and will be permitted on the date of such incurrence to divide and classify an item of such Financial Indebtedness in more than one of such limbs, and, from time to time, may reclassify all or a portion of such Financial Indebtedness;

		
	(f)
	to permit Financial Indebtedness of asset securitization subsidiaries (as described above) incurred solely to finance any asset securitisation programme or receivables factoring transaction otherwise permitted under the definition of Permitted Disposals; and

		
	(g)
	in Paragraph (p) of the definition of Permitted Financial Indebtedness, permit the Company to incur Financial Indebtedness under this general basket of up to an aggregate of the greater of €200,000,000 and 5% of total assets.

		
	50.
	Permitted Transaction: amend the definition of Permitted Transaction:

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

	
			
	 

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	(b)
	to expressly permit a member of the Group to acquire shares in another member of the Group (in particular, in respect of a Holding Company of such member of the Group);

		
	(c)
	to permit post-closing reorganisations and spin-offs in line with recent Liberty precedent.

		
	51.
	New Notes Issuances and Additional Senior Secured Debt: amend the Finance Documents to provide that (subject to certain protections such that creditors of the new indebtedness are not structurally senior to the Lenders) any member of the Group (including a newly incorporated company which is a member of the Group) may issue notes and incur additional term or revolving debt which rank pari passu with the rights of the Lenders and shall be capable of being secured by the transaction security and provided that the proceeds of such debt may be used to, amongst other things, refinance Term Loans and Revolving Facility Loans and for general working capital purposes provided that (other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) as a result of the incurrence of such additional debt, Net Senior Secured Debt (as defined in accordance with a recent Liberty precedent) to Consolidated Annualised EBITDA does not exceed 4.00:1.00 (taking into account the Revolving Facility Excluded Amount).

		
	52.
	Permitted Business/Change of Business: amend the Credit Agreement to delete Clause 19.8 (Permitted Business) and amend Clause 19.9 (Change of business) such that the restriction would only apply to a substantial change in the business of the Group taken as a whole.

		
	53.
	Permitted Payments: 

		
	(a)
	amend the definition of Permitted Payment to include the following additional limbs:

		
	(i)
	to enable any holding company of a member of the Group to pay taxes that are due by such holding company but which are allocable to (I) the Group and due by such holding company as a result of the Group being included in a fiscal unity with such holding company or (II) acting as a holding and/or financing company of the Group;

		
	(ii)
	contemplated by a disposal or similar transaction required by a regulatory authority or a court of competent jurisdiction;

		
	(iii)
	payments to any direct or indirect shareholder of a member of the Group for out-of-pocket expenses incurred in connection with its direct or indirect investment in a Group company;

		
	(iv)
	for certain holding company expenses (as defined in accordance with a recent Liberty precedent) including expenses payable in connection with, amongst other things, compliance with laws and regulations, reporting obligations, related indemnification payments, employee, directors and officers insurance policies and general corporate overhead expenses);

		
	(v)
	for financial advisory, financing, underwriting or placement services or other investment banking activities, in particular acquisitions or divestitures, approved by the board of the holding company;

		
	(vi)
	any other distribution, dividend, transfer of assets, loan or other payment not falling within the other limbs of the definition and not exceeding an aggregate amount of the greater of €250,000,00 and 3% of total assets in any financial year;

	
			
	 

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	(vii)
	an amount corresponding to the Revolving Facility Excluded Amount at any time and provided that if at any time after a Permitted Payment under this limb is made the revolving facility is prepaid or repaid in full or in part, a further Permitted Payment may be made under this limb in an amount equal to (A) if in full, the Revolving Facility Excluded Amount; and (B), if in part, the lower of an amount equal to (i) the Revolving Facility Excluded Amount and (ii) the amount of the partial prepayment or repayment referred to above, at any time after the date of such repayment (in each case in accordance with recent Liberty precedent;

		
	(viii)
	to provide a de minimis threshold of €15,000,000 under which the restrictions on entering into transactions with a Restricted Person in Clause 19.13 (Restricted Payments) will not apply;

		
	(ix)
	paragraph (b) of the definition containing a carve out for management fees to be amended to refer to the greater of €15,000,000 and 0.5% of total assets of the Group in any financial year;

		
	(x)
	payments made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a person or entity that is not a member of the Group in connection with, an asset securitisation programme or receivables factoring transaction; 

		
	(xi)
	Permitted Payments in respect of a Permitted Disposal; 

		
	(xii)
	Paragraph (c) of the definition to be amended to permit loans, distributions, dividends or other payments made by Telenet International Finance S.à r.l. to Telenet Group Holding NV (in addition to those made by the Company) and to permit the payments referred to in paragraph (c), in each case, provided that prior to and as a result of such payment Net Total Debt to Consolidated Annualised EBITDA would not be greater than 5.00:1.00 (taking into account the Revolving Facility Excluded Amount); and

		
	(xiii)
	payments in relation to a Permitted Transaction.

		
	(b)
	amend Clause 19.13 (Restricted Payment) to include a provision, such that if a Permitted Payment meets the criteria of more than one of the categories described, the Company will be entitled to classify such Permitted Payment (or portion thereof) on the date of its payment or later reclassify such Permitted Payment (or portion thereof) in any manner that complies with the covenant in that Clause; and

		
	(c)
	amend Clause 19.13 (Restricted Payment) to exclude Permitted Affiliate Transactions from the restriction in such Clause (with a new definition of such term to be included, consistent with recent Liberty precedent) and so that such Clause does not restrict transactions to the extent they constitute Permitted Payments.

		
	54.
	Permitted Loans: amend Clause 19.15 (Loans and Guarantees):

		
	(a)
	to include a limb for counter guarantees in relation to any rental guarantees; 

		
	(b)
	to include a limb for loans or guarantees in respect of any Permitted Transaction and to any Permitted Joint Venture;

	
			
	 

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	(c)
	to include a limb for loans to employees in the ordinary course of employment or to fund exercise of share options or purchase of capital stock of up to €10,000,000 in aggregate;

		
	(d)
	to permit customary liquidity loans in connection with a permitted asset securitisation program or receivables factoring transaction; and

		
	(e)
	to provide for the Company to be able to make loans and guarantees under a general basket of up to an aggregate of the greater of €100,000,000 and 2% of total assets.

		
	55.
	Changes to Thresholds:

		
	(a)
	in the definition of Permitted Security Interest, permit the Company to secure Financial Indebtedness on a pari passu or junior-ranking basis provided that (other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) the Net Total Debt to Consolidated Annualised EBITDA ratio on a pro forma basis would not be greater than 5.50:1.00 and provided that such Financial Indebtedness is subject to an intercreditor agreement on terms satisfactory to the Security Agent (acting on the instructions of the Majority Lenders) and where (in the case of such Financial Indebtedness being secured on a junior-ranking basis) the rights of the holders of such Financial Indebtedness in respect of any payment will be contractually subordinated to the rights of the Lenders on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt, as referred to in recent Liberty precedent);

		
	(b)
	in Paragraph (k) of the definition of Permitted Security Interest, provide that the Company may secure Financial Indebtedness under this general basket of up to the greater of €200,000,000 and 5% of total assets, such security to be either on assets not subject to the security in favour of the Lenders or otherwise secured on a junior ranking basis over assets subject to the Lenders’ security (in the latter case provided that the rights of the holders of such Financial Indebtedness in respect of any payment will be contractually subordinated to the rights of the Lenders on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt, as referred to in recent Liberty precedent);

		
	(c)
	in Clause 20.5 (Cross default and cross acceleration), delete reference to €50,000,000 and replace with €75,000,000; and

		
	(d)
	in Clause 20.8 (Creditors’ process), delete reference to €25,000,000 and replace with €75,000,000.

		
	56.
	Shareholder Loans: amend Clause 19.17(b) (Shareholder Loans) to permit shareholder loans to be governed by Belgian law, Luxembourg law, Delaware, Colorado, New York, Dutch or English law provided that (subject to item 58 (Release of Security and Guarantees) in this Schedule) if any existing shareholder loan governed by Belgian law is to have a new governing law, equivalent Security is provided to the Finance Parties following such change of law. 

		
	57.
	Shares: amend Clause 19.19 (Share Capital) to also permit the reduction of capital and the purchase or redemption of shares if it is (i) a Permitted Transaction; (ii) in circumstances where all of the share capital is held by another member of the Group; or (iii) for a nominal amount. Amend Clause 19.20 (Share security) to remove any restrictions on the issue of shares by any member of the Group, provided that if any of the existing shares in the relevant member of the Group are subject to Security, any new shares will also be subject to equivalent Security.

	
			
	 

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	58.
	Security and Guarantee Release: amend the relevant provisions of the Credit Agreement (in particular Clauses 18.17 (Material Subsidiaries), 19.20 (Share Security) and 27.9 (Resignation of an Obligor)) to provide that, subject to certain thresholds being met no Obligor nor any other member of the Group is required to provide any Security or guarantee other than Security over the shares that it holds in any Obligor, Security required under the terms of the Credit Agreement in respect of Subordinated Shareholder Loans and a guarantee from the Obligors under the terms of the Credit Agreement and include a provision to authorise the Security Agent to release any other Security or guarantees other than the aforementioned and to release Security in respect of Permitted Disposals and to permit relevant Security to be released if a Guarantor resigns in accordance with Clause 27.9 (Resignation of an Obligor (other than the Company)) provided that the guarantor coverage test would still be met notwithstanding such release.

		
	59.
	Events of Default:

		
	(a)
	amend Clause 1.2(a)(x) to clarify that both a Default and an Event of Default is not continuing if remedied or waived; 

		
	(b)
	amend Clause 20.2 (Non-payment) to delete the qualification relating to technical or administrative errors and to include a 3 Business Day grace period for payment of principal and a 5 Business Day grace period for any other payments;

		
	(c)
	amend Clause 20.3 (Breach of other obligations) to provide for a clean up period of 120 days in respect of any entity acquired pursuant to a Permitted Acquisition in line with recent Liberty precedent; 

		
	(d)
	amend (a) Paragraph (iv) of Clause 20.6 (Insolvency) by clarifying that commencing negotiations with the Finance Parties will not constitute an Event of Default under this Paragraph and (b) Paragraph (b) of Clause 20.7 (Insolvency Proceedings) including a general exclusion for contested proceedings that are frivolous, vexatious or an abuse of the process of the court but without the requirement to provide a legal opinion with respect thereto to the Facility Agent;

		
	(e)
	amend Clause 20.5 (Cross default and cross acceleration) to clarify that the occurrence of a termination event in respect of a Hedging Agreement as a result of any refinancing or redemption of Financial Indebtedness will not constitute an Event of Default under Paragraphs (b) or (c) of such Clause and also to carve out circumstances being contested in good faith, Financial Indebtedness being owed by one member of the Group to another member of the Group and any Default arising under Financial Indebtedness of an acquired entity for a period of 180 days from the date of the relevant acquisition (provided that there has been no acceleration of such Financial Indebtedness), in each case in line with recent Liberty precedents; and

		
	(f)
	delete Paragraphs (b) and (c) of Clauses 20.11 of (Effectiveness of the Finance Documents) and Clauses 20.12 (Ownership of the Obligors), 20.13 (Expropriation), 20.15 (Material Contracts) (and all references to Material Contracts) and Clause 20.18(b) (ERISA) and conform Paragraphs (a) and (d) of Clauses 20.11 of (Effectiveness of the Finance Documents) with recent Liberty precedents.

		
	60.
	Impaired Agent: amend the Credit Agreement to provide for impaired agent provisions language used in recent Liberty precedents and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market so that alternative payment and notice arrangements are permitted if the Facility Agent is impaired.

	
			
	 

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	61.
	Defaulting Lender: include standard defaulting lender provisions used in recent Liberty precedents and/or, to the extent not inconsistent with recent Liberty precedent, the European leverage loan market so as the commitments of a defaulting lender may be cancelled and it will have no rights to vote in respect of such cancelled commitments. Clarify that no commitment fee will be payable to a defaulting lender.

		
	62.
	Replacement of Agent/ Security Agent: amend Clause 21.13 (i) (Resignation of an Agent) to:

		
	(a)
	remove the requirements for the Company to: (a) be unsatisfied with the performance of the Agent; (b) specify reasonable grounds for replacement in the relevant notice and (c) add a requirement that no Default is outstanding at the relevant time; 

		
	(b)
	provide that the Company may remove the Facility Agent if the status or identity of the Facility Agent causes any Obligor to become liable for any withholding tax in connection with FATCA; and

		
	(c)
	provide that the Company will have the right to appoint a successor Facility Agent without the Lenders’ consent twice during the life of the Facilities,

and, in each case, permits the removal of the Security Agent as the joint creditor for the purposes of any “parallel debt.
		
	63.
	Agent’s management time: amend the Credit Agreement to remove Clause 21.15 (Agent’s management time).

		
	64.
	Assignments/Transfers of Lenders: clarify that the Company should have the right to withhold consent in respect of an assignment/transfer of the Revolving Facility to an entity which is not a lender under a revolving facility to the wider Liberty group (subject to no consent being required in the case of transfers to other Lenders or affiliates of Lenders or following an event of default which is continuing). There should be no unreasonableness qualifier on this right (in respect of the Revolving Facility only). Remove requirement of deemed consent within 10 Business Days in respect of each Revolving Facility.

		
	65.
	Assignments/Transfers of Obligors: amend Clause 27.2 so that any Benelux Borrower may assign or transfer any of its rights and obligations under the Revolving Facility or the Term Loans to another Benelux Borrower and so that any US Borrower may do the same to another US Borrower, in each case, without the prior consent of the Lenders provided that a solvency opinion and legal opinion are provided, if requested, in accordance with recent Liberty precedents in respect of an equivalent provision.

		
	66.
	Replacement of a Lender: amend the Credit Agreement to include the right to replace a Lender (in whole and at par) if the Obligor becomes obliged to make payment under Illegality, Increased Costs, Tax Gross up or Tax Indemnity provisions to any Lender or if a Lender invokes the provisions of Clause 10 (Market Disruption). 

		
	67.
	Expenses: amend Clause 25.2 (Subsequent costs) to make legal fees subject to any agreed caps; and Clause 11.6 (Stamp taxes) to ensure that any liability of the Company for the payment of any tax (including stamp taxes) does not extend to taxes payable in respect of an assignment or transfer of a Lender’s interest.

		
	68.
	Amendments: 

	
			
	 

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	(a)
	amend Clause 26 (Amendments and waivers) to introduce a class exception, whereby any amendment or waiver that relates only to the rights or obligations of a particular Utilisation or Facility and does not materially and adversely affect the rights or interests of Lenders in respect of other Utilisations or Facilities only requires the consent of the relevant proportion of Lenders participating in such Utilisation or Facility; 

		
	(b)
	amend Clause 26.2 (Exceptions) to require the consent of affected Lenders only and not all Lenders (and make any consequential changes by amending for example, all references to matters requiring all Lender consent to only requiring affected Lender consent); and

		
	(c)
	include a new paragraph (d) to Clause 26.2 (Exceptions), to permit the Facility Agent to make technical, minor, operational and OID amendments without consent from any Lenders, on terms consistent with recent Liberty precedent as at the date of implementation of the amendments.

		
	69.
	Intercompany Debt: amend the finance documents to (i) provide that intercompany debt should be freely transferable within the group, provided that only, in the case of any intercompany debt which is the subject of security granted in favour of the Finance Parties, equivalent security is granted to the Finance Parties; and (ii) permit amendments to any intercompany debt documents without lender consent.

		
	70.
	Form of TNV: amend the Credit Agreement (and any other Finance Document) to permit Telenet N.V. or any other member of the Group to change its corporate form to a private limited company (or equivalent under the law of the jurisdiction of its incorporation) or any other corporate limited liability form, without requiring the consent of any Lender, provided that, if shares in the relevant entity that is changing corporate form are the subject of security in favour of the Finance Parties, the Facility Agent may require the delivery of new security over such shares and, in addition, that such changes are not materially adverse to the interest of the Lenders and the delivery, if requested, of legal opinions to the Facility Agent and Security Agent, confirming that, after giving effect to any transactions related to such change of corporate form, the security over the shares in the relevant entity continues to represent valid and perfected security interests.

		
	71.
	Joint Ventures and solvent reorganisations: amend the Credit Agreement to permit Telenet N.V. to contribute freely pledged loan and guarantee receivables to the Permitted Joint Venture’s share capital without requiring a release from the Security Agent (subject to confirmation or re-taking of security over such pledged loan and guarantee receivables) and amend clause 4.8(f) of the Intercreditor Agreement to permit the solvent liquidation or solvent reorganisation of a member of the Group in accordance with Clause 19.10 (Acquisitions and Mergers) without requiring Majority Senior Lender consent as currently required under such clause of the Intercreditor Agreement.  In addition, clarify in Paragraph (b)(iii) of Clause 19.10 (Acquisitions and mergers) that references to mergers also include solvent reorganisations and solvent liquidations (and subject to equivalent requirements).

		
	72.
	Indemnification requirements: amend the Credit Agreement in respect of any indemnity granted by the Company to conform to recent Liberty precedent including, amongst others, amending Clause 11.3 (Tax Indemnity) such that the indemnity is paid within 10 Business Days and the loss is calculated on a reasonable basis, Clause 11.6 (Stamp Taxes) such that the indemnity is paid within 10 Business Days, Clause 24.2(b) (Other Indemnities) such that the indemnity only extends to loss incurred where the Facility Agent has acted reasonably.

		
	73.
	Accession Agreements: amend each Accession Agreement to remove the restriction which prevents:

	
			
	 

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	(a)
	Telenet N.V. from arranging an Additional Facility if after giving effect to a utilisation thereunder, the ratio of Net Total Senior Debt to Consolidated Annualised EBITDA would be greater than 4.50:1; and

		
	(b)
	the Company from requesting the transfer of an Additional Facility pursuant to Clause 26.3 (Non-Consenting Lenders).

		
	74.
	Non-Consenting Lenders: remove the timing window of 90 days during which the Company may effect the provisions set out in Clause 26.3 (Non-Consenting Lenders).

		
	75.
	References: amend the Credit Agreement:

		
	(a)
	so that all references to any party include any assignees, transferees, successors in title and merged entities thereof;

		
	(b)
	to take account of the fact that Holdco has been liquidated; and

		
	(c)
	to take account of the fact that certain Facilities under the Credit Facility have been (as at the date of this Agreement) repayment and cancelled in full.

		
	76.
	Subsidiary: amend the definition of Subsidiary so that it means, in respect of a person, any entity directly or indirectly controlled by such person, for which purpose control means ownership of more than 50 per cent. of the economic and/or voting share capital (or equivalent right of ownership) and that for the purposes of the financial covenants and related provisions that a “Subsidiary” of a person includes legal entity which is accounted for under applicable GAAP or IFRS as a Subsidiary.

		
	77.
	Material Adverse Effect representation: amend Clause 16.9 (Not material adverse change) such that the representation provides that there has been no material adverse change in the consolidated financial position of the Group (taken as a whole) since the date to which the Original Financial Statements which would or is reasonably likely to have a Material Adverse Effect.

	
			
	 

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	0096349-0000001 BK:27206826.11
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SIGNATORIES
AGENTS
THE BANK OF NOVA SCOTIA as Facility Agent
By:    Authorized Signatory

KBC BANK NV as Security Agent
By:    Authorized Signatory

	
			
	 

	 
	 
	 

	
	
	 

BORROWER
EXECUTED AS A DEED by            )
TELENET INTERNATIONAL             )
FINANCE S.À R.L.                )
acting by                    )
Authorized Signatory
Manager

GUARANTORS
EXECUTED AS A DEED by            )
TELENET NV                     )
acting by                    )
Authorized Signatory
Director
Director/Secretary

EXECUTED AS A DEED by            )
TELENET INTERNATIONAL             )
FINANCE S.À R.L.                )
acting by                    )
Authorized Signatory
Manager

EXISTING SECURITY PROVIDERS

TELENET NV
By:    Authorized Signatory
Title: 

	
			
	 

	 
	 
	 

	
	
	 

TELENET GROUP HOLDING NV
By:    Authorized Signatory
Title: 

TELENET VLAANDEREN NV
By:    Authorized Signatory        By:    Authorized Signatory
Title:                    Title: 

TELENET SERVICE CENTER BVBA
By:    Authorized Signatory        By:    Authorized Signatory
Title:                    Title:  

	
			
	 

	 
	 
	 

	
	
	 

TELENET ADDITIONAL FACILITY X LENDERS

TELENET LUXEMBOURG FINANCE CENTER S.À.R.L.

By:    Authorized Signatory

	
			
	 

	 
	 
	 

	
	
	 

CREDIT SUISSE AG, LONDON BRANCH

By:    Authorized Signatory

DEUTSCHE BANK AG, LONDON BRANCH

By:    Authorized Signatory

GOLDMAN SACHS BANK USA

By:    Authorized Signatory

ING BELGIUM NV/SA

By:    Authorized Signatory

SCOTIABANK EUROPE PLC

By:    Authorized Signatory

SOCIETE GENERALE, LONDON BRANCH

By:    Authorized Signatory

	
			
	 

	 
	 
	 

	
	
	 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

By:    Authorized Signatory

THE ROYAL BANK OF SCOTLAND PLC, BELGIUM BRANCH

By:    Authorized SignatoryUnassociated Document

Exhibit 10.9

 

EXECUTION VERSION

 

TRUNITY HOLDINGS, INC.

SUBSCRIPTION AGREEMENT

This Subscription Agreement (“Agreement”) is entered into as of the 28 day of May, 2013, by and between Trunity Holdings, Inc., a Delaware corporation (the “Company”), and the undersigned investor (“Investor”).

RECITALS:

A.            Investor wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) that aggregate number of shares of the common stock, par value $0.0001 per share of the Company (the “Common Stock”), set forth opposite Investor’s name on its signature page hereto (the “Shares”) and (ii) warrants, in substantially the form attached hereto as Exhibit A (the “Warrants”), to acquire that number of shares of Common Stock (as exercised, collectively, the “Warrant Shares”) set forth opposite Investor’s name on signature page hereto. The number of Warrants shall be equal to the number of Shares purchased hereunder.

B.            As of the Closing under this Agreement, the parties hereto (and thereto, as applicable) shall enter into a Registration Rights Agreement, substantially in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide certain registration rights with respect to the Shares and the Warrant Shares under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.

C.            As of the Closing under this Agreement, the parties hereto (and thereto, as applicable) are executing and delivering (i) an investor rights agreement, substantially in the form attached hereto as Exhibit C (the “Investor Agreement”), pursuant to which the Company has agreed to provide certain purchase rights with respect to the Shares and the Warrant Shares, (ii) a voting agreement, substantially in the form attached hereto as Exhibit D (the “Voting Agreement”), pursuant to which the Investor shall designate one member of the Company’s board of directors and (iii) an escrow agreement, substantially in the form attached as Exhibit E (the “Escrow Agreement”).

D.            The Shares, the Warrants and the Warrant Shares, collectively are referred to herein as the “Securities”.

NOW, THEREFORE, the Company and Investor hereby agree as follows:

1.             Definitions. In addition to those terms defined above and elsewhere in this Subscription Agreement, for the purposes of this Subscription Agreement, the following terms shall have the meanings set forth below:

“Bylaws” means the Company’s bylaws, as amended.

“Certificate of Incorporation” means the certificate of incorporation filed by the Company with the Secretary of State of the State of Delaware as in effect as of the date hereof.

“Company’s Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the Securities Act) of the Company, after due inquiry.

“Escrow Agent” means Carlton Fields P.A , the escrow agent under the Escrow Agreement.

  

  

  

 

“Exchange Act” means the Securities Exchange Act of 1934.

“Intellectual Property” means all of the following: (a) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to practice); (b) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (c) copyrights and copyrightable works; (d) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software (including but not limited to data, data bases and documentation).

“Material Adverse Effect” means a material adverse effect on (a) the assets, liabilities, results of operations, condition (financial or otherwise), or business of the Company and its Subsidiaries taken as a whole, (b) the legality, validity, enforceability or binding effect of the this Subscription Agreement or (c) the ability of the Company to perform its obligations under this Subscription Agreement.

“Material Contract” means any contract, instrument or other agreement to which the Company or any Subsidiary is a party or by which it is bound which has been or is required to be filed as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

“OTCBB” means the United States quotation medium for subscribing members referred to as the over-the-counter bulletin board used for many over-the-counter equity securities that are not listed on the NASDAQ or a national stock exchange and regulated by Financial Industry Regulatory Authority, Inc., Over the Counter Bulletin Board.

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Exchange Act of 1933, as amended.

 

“Subsidiary” of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

“Transaction Documents” means this Agreement and each of the Registration Rights Agreement, Investor Agreement, Voting Agreement, Escrow Agreement and all other documents and instruments required to effectuate the transactions contemplated by this Agreement.

	
2.

	
Subscription.

2.1           Amount. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 7 and 8 below, the Company shall issue and sell to Investor, and Investor agrees to purchase from the Company on the Closing Date (as defined below), the number of Shares, as is set forth opposite Investor’s name on the signature page to this Agreement, along with the Warrants to acquire up to that number of Warrant Shares as is set forth opposite Investor’s name on the signature page to this Agreement.

2.2           Closing. The closing (the “Closing”) of the purchase of the Shares and the Warrants by Investor shall occur at the offices of Carlton Fields, P.A., Miami Tower, 100 SE Second Street, Suite 4200, Miami, FL 33131. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York City Time, on May ___, 2013, or such later date as is mutually agreed to by the Company and Investor; provided, however, that multiple Closings shall be held if necessary to satisfy the conditions of the Escrow Agreement and the date of the Closing(s) shall be automatically extended from time to time for so long as any of the conditions set forth in Sections 7 and 8 below are not satisfied or waived, subject, however, to the provisions of Article 9).

  

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2.3           Purchase Price. The purchase price for Investor of the Shares and related Warrants to be purchased by Investor at the Closing shall be the amount set forth opposite Investor’s name on the signature page to this Agreement (less any applicable fees and disbursements, the “Purchase Price”). The purchase price for the Shares is $0.40 per Share and the Warrant exercise price is $1.00 per Share.

2.4           Form and Manner of Payment.

 (a)           On the date hereof, Investor shall pay the Purchase Price to the Escrow Agent for the Shares and the Warrants to be issued and sold to Investor at the Closing, by wire transfer of immediately available funds in accordance with the Escrow Agent’s written wire instructions.

 (b)           On the Closing Date, (i) the Company shall irrevocably instruct the transfer agent for the Common Stock to deliver to Investor one or more stock certificates, free and clear of all restrictive and other legends (except as expressly provided in Section 4.4 hereof), evidencing the number of Shares Investor is purchasing as is set forth opposite Investor’s name on the signature page to this Agreement via Deposit Withdrawal Agent Commission system (“DWAC”) delivery prior to the release of the federal funds wire to the Company for payment of such Shares, (ii) the Company shall issue to Investor a Warrant pursuant to which Investor shall have the right to acquire such number of Warrant Shares as is set forth opposite Investor’s name on the signature page to this Agreement, duly executed on behalf of the Company and registered in the name of Investor and (iii) the Company and Investor shall jointly instruct the Escrow Agent in writing to disburse the Purchase Price to an account designated by the Company.

	
3.

	
Representations and Warranties of the Company. The Company hereby represents and warrants to Investor that:

3.1           Organization, Good Standing and Qualification. Each of the Company and its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted and to own or lease its properties. Each of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably be expected to have a Material Adverse Effect.

3.2           Authorization. The Company has the corporate power and authority to enter into this Subscription Agreement and has taken all requisite action through its officers, directors and shareholders necessary for (a) the authorization, execution and delivery of the Subscription Agreement, (b) the authorization of the performance of all obligations of the Company hereunder, and (c) the authorization, issuance (or reservation for issuance) and delivery of the Shares upon receipt of the Purchase Price. This Subscription Agreement constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally and to general equitable principles.

  

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3.3           Capitalization.

 (a)           The Company has duly and validly authorized capital stock as set forth in the Certificate of Incorporation. All of the issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights and were issued in full compliance with applicable state and federal securities law and any rights of third parties. All of the issued and outstanding shares of capital stock of each Subsidiary have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with applicable state and federal securities law and any rights of third parties and are owned by the Company, beneficially and of record, subject to no lien, encumbrance or other adverse claim. No Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company. Other than the Warrants and except as set forth in the 10-K (as defined in Section 3.6 below), there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of any kind and except as contemplated by this Subscription Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind. Except for the Voting Agreement and Investor Agreement, there are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of the security holders of the Company relating to the securities of the Company held by them. Except as required under the Registration Rights Agreement, no Person has the right to require the Company to register any securities of the Company under the Securities Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account or for the account of any other Person.

 (b)           The issuance and sale of the Shares hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person (other than Investor) and will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security.

 (c)           The Company does not have outstanding shareholder purchase rights or “poison pill” or any similar arrangement in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence of certain events.

3.4           Valid Issuance. Upon the issuance of the Shares in accordance with Section 2.4, the Shares will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions, except for restrictions imposed by applicable securities laws.

3.5           Consents. The execution, delivery and performance by the Company of the Subscription Agreement and the offer, issuance and sale of the Shares require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities laws which the Company undertakes to file within the applicable time periods.

3.6           Delivery of SEC Filings; Business. The Company has made available to Investor through the EDGAR system, true and complete copies of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (as amended prior to the date of this Subscription Agreement, the “10-K”), and all other reports filed by the Company pursuant to Sections 13(a), 13(e), 14 and 15(d) of the Exchange Act since the filing of the 10-K and during the twelve (12) months preceding the date of this Subscription Agreement(collectively, the “SEC Filings”) , of which all such SEC Filings have been timely filed (including any extensions permitted under SEC rules and regulations). The SEC Filings are the only filings required of the Company pursuant to the Exchange Act for such period. The Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries, taken as a whole.

  

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3.7           Use of Proceeds. The net proceeds of the sale of the Shares hereunder shall be used by the Company for working capital and general corporate purposes, included but not limited to, funding and supporting the Ukraine project and other global initiatives of the Company.

3.8           No Material Adverse Change. Since January 1, 2012, except as set forth in the 10-K, there has not been:

 (a)           any change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial statements included in the 10-K, except for changes in the ordinary course of business which have not had and could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;

 (b)           any declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company, or any redemption or repurchase of any securities of the Company;

 

 (c)           any material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

 (d)           any waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it;

 (e)           any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results or business of the Company and its Subsidiaries taken as a whole (as such business is presently conducted and as it is proposed to be conducted);

 (f)           any change or amendment to the Certificate, material change to any Material Contract or arrangement by which the Company or any Subsidiary is bound or to which any of their respective assets or properties is subject;

 (g)           any material labor difficulties or labor union organizing activities with respect to employees of the Company or any Subsidiary;

 (h)           any material transaction entered into by the Company or a Subsidiary other than in the ordinary course of business;

 (i)           the loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or any Subsidiary;

 (j)           the loss or, to the Company’s Knowledge, threatened loss of any customer which has had or could reasonably be expected to have a Material Adverse Effect; or

 (k)           any other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.

  

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3.9           SEC Filings; S-3 Eligibility.

 (a)           At the time of filing thereof, each of the SEC Filings complied as to form in all material respects with the requirements of the Exchange Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 (b)           Each registration statement and any amendment thereto filed by the Company for the past three (3) years pursuant to the Securities Act and the rules and regulations thereunder, as of the date such statement or amendment became effective, complied as to form in all material respects with the Securities Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein not misleading; and each prospectus filed pursuant to Rule 424(b) under the Securities Act, as of its issue date and as of the closing of any sale of securities pursuant thereto did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

3.10           No Conflict, Breach, Violation or Default. The execution, delivery and performance of the Subscription Agreement by the Company and the issuance and sale of the Shares will not (a) conflict with or result in a breach or violation of (i) any of the terms and provisions of, or constitute a default under the Certificate of Incorporation or the Bylaws (true and complete copies of which have been made available to Investor through the EDGAR system), or (ii) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties, or (b) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, encumbrance or other adverse claim upon any of the properties or assets of the Company or any Subsidiary or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract, except in the case of clauses (a)(i) and (b) above, such as could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

3.11           Tax Matters. The Company and each Subsidiary has prepared and filed (or filed applicable extensions therefore) all tax returns required to have been filed by the Company or such Subsidiary with all appropriate governmental agencies and paid all taxes shown thereon or otherwise owed by it, other than any such taxes which the Company or any Subsidiary are contesting in good faith and for which adequate reserves have been provided and reflected in the Company’s financial statements included in its SEC Filings. The charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal, state or local taxing authority except for any assessment which is not material to the Company and its Subsidiaries, taken as a whole. All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due, other than any such taxes which the Company or any Subsidiary are contesting in good faith and for which adequate reserves have been provided and reflected in the Company’s financial statements included in its SEC Filings. There are no tax liens or claims pending or, to the Company’s Knowledge, threatened in writing against the Company or any Subsidiary or any of their respective assets or property. There are no outstanding tax sharing agreements or other such arrangements between the Company and any Subsidiary or other corporation or entity.

  

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3.12           Title to Properties. The Company and each Subsidiary has good and marketable title to all real properties and all other properties and assets (excluding Intellectual Property assets which are the subject of Section 3.15 ) owned by it, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them.

3.13           Certificates, Authorities and Permits. The Company and each Subsidiary possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, except to the extent failure to possess such certificates, authorities or permits could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

3.14           Labor Matters.

   (a)           The Company is not a party to or bound by any collective bargaining agreements or other agreements with labor organizations.

   (b)           The Company has not violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees, labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and hours.

   (c)            (i) There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts or any other disruptions of or by the Company’s employees, (ii) there are no unfair labor practices or petitions for election pending or, to the Company’s Knowledge, threatened before the National Labor Relations Board or any other federal, state or local labor commission relating to the Company’s employees, (iii) no demand for recognition or certification heretofore made by any labor organization or group of employees is pending with respect to the Company and (iv) to the Company’s Knowledge, the Company enjoys good labor and employee relations with its employees and labor organizations.

   (d)           The Company is, and at all times has been, in compliance with all applicable laws respecting employment (including laws relating to classification of employees and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration and naturalization, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate. There are no claims pending against the Company before the Equal Employment Opportunity Commission or any other administrative body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local law, statute or ordinance barring discrimination in employment.

   (e)           To the Company’s Knowledge, the Company has no liability for the improper classification by the Company of its employees as independent contractors or leased employees prior to the Closing Date.

  

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3.15           Intellectual Property. The Company and the Subsidiaries own, or have obtained valid and enforceable licenses for, or other rights to use, the Intellectual Property necessary for the conduct of the business of the Company and the Subsidiaries as currently conducted and as described in the SEC Filings, except where the failure to own, license or have such rights could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate. To the Company’s Knowledge, there are no third parties who have or will be able to establish rights to any Intellectual Property, except for the ownership rights of the owners of the Intellectual Property which is licensed to the Company or where such rights could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate. There is no pending or, to the Company’s Knowledge, threat of any, action, suit, proceeding or claim by others challenging the Company’s or any Subsidiary’s rights in or to, or the validity, enforceability, or scope of, any Intellectual Property owned by or licensed to the Company or any Subsidiary or claiming that the use of any Intellectual Property by the Company or any Subsidiary in their respective businesses as currently conducted infringes, violates or otherwise conflicts with the intellectual property rights of any third party. To the Company’s Knowledge, the use by the Company or any Subsidiary of any Intellectual Property by the Company or any Subsidiary in their respective businesses as currently conducted does not infringe, violate or otherwise conflict with the intellectual property rights of any third party.

3.16           Environmental Matters. To the Company’s Knowledge, neither the Company nor any Subsidiary is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened investigation that might lead to such a claim.

3.17           Litigation. Except as set forth in the 10-K, (a) there are no pending actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are threatened, or (b) any such proceeding, if resolved adversely to the Company or any Subsidiary, could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate. Except as set forth in the 10-K, neither the Company nor any Subsidiary, nor any director or officer thereof, is or since January 1, 2008 has been the subject of any action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Company’s Knowledge, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Securities Act or the Exchange Act.

3.18           Financial Statements. The financial statements included in each SEC Filing comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent corrected by a subsequent restatement) and present fairly, in all material respects, the consolidated financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted by Form 10-Q under the Exchange Act). Neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent or otherwise, except those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since the date of such financial statements, none of which, individually or in the aggregate, have had or could reasonably be expected to have a Material Adverse Effect.

  

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3.19           Insurance Coverage. The Company and each Subsidiary maintains in full force and effect insurance coverage that is customary for comparably situated companies for the business being conducted and properties owned or leased by the Company and each Subsidiary.

3.20           Compliance with OTCBB Continued Listing Requirements. The Company is in compliance with applicable OTCBB continued listing requirements. There are no proceedings pending or, to the Company’s Knowledge, threatened against the Company relating to the continued listing of the Common Stock on OCTBB. The Company has not received any currently pending notice of the delisting of the Common Stock from the OTCBB.

3.21           Brokers and Finders. Except for ACGM, Inc., no Person will have, as a result of the transactions contemplated by the Subscription Agreement, any valid right, interest or claim against or upon the Company or any Subsidiary for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company.

3.22           No Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used in Rule 506 of Regulation D (“Regulation D”)) in connection with the offer or sale of any of the Shares.

3.23           Questionable Payments. Neither the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of their respective current or former shareholders, directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary, has on behalf of the Company or any Subsidiary or in connection with their respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the books and records of the Company or any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature.

3.24           Transactions with Affiliates. Except as set forth in the 10-K, none of the officers or directors of the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than as holders of stock options and/or warrants, and for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

3.25           Internal Controls. The Company is in material compliance with the provisions of the Sarbanes-Oxley Act of 2002 currently applicable to the Company. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or specific authorization, and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including the Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of December 31, 2012 (such date, the “Evaluation Date”) and concluded that such controls and procedures are effective to ensure that material information relating to the Company, including the Subsidiaries, is made known to certifying officers in a timely, accurate and complete manner. Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 308 of Regulation S-K) or, to the Company’s Knowledge, in other factors that could significantly affect the Company’s internal controls. The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with GAAP and the applicable requirements of the Exchange Act.

  

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3.26           Investment Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

3.27           Compliance with Laws. The Company and each of its Subsidiaries is in compliance in all material respects with all requirements imposed by law, regulation or rule, whether foreign, federal, state or local, that are applicable to it, its operations, or its properties and assets, including, without limitation, applicable requirements of the Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.).

3.28           Disclosure. No representation or warranty of the Company or any of its Subsidiaries contained in this Subscription Agreement and none of the statements contained in any other document, certificate, report, financial statement or written statement furnished to Investor by or on behalf of the Company or any of its Subsidiaries pursuant to this Subscription Agreement contains any untrue statement of a material fact or omits to state a material fact (known to Company, in the case of any document not furnished by it) necessary in order to make the statements contained herein or therein not misleading in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Company to be reasonable at the time made.

4.           Representations and Warranties, Acknowledgement and Covenant of Investor. Investor hereby makes the representations and warranties to the Company that are set forth in this Article 4.

4.1           Authority; Enforceability. (a) Investor has full right, power and authority to enter into this Subscription Agreement and to perform all of its obligations hereunder; (b) this Subscription Agreement has been duly authorized and executed by and constitutes a valid and binding agreement of Investor enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights and remedies of creditors generally and (c) the execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereby do not conflict with or result in a breach of (i) Investor’s certificate of formation or limited liability company agreement (or other similar governing documents), or (ii) any material agreement or any law or regulation to which Investor is a party or by which any of its property or assets is bound.

  

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4.2           No Public Sale or Distribution. Investor is (a) acquiring the Shares and the Warrants and (b) upon exercise of the Warrants will acquire the Warrant Shares, in each case, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, Investor does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to an effective registration statement or an exemption under the 1933 Act. Investor is acquiring the Securities hereunder in the ordinary course of its business. Investor does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities.

4.3           Status. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D. Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of Investor set forth herein in order to determine the availability of such exemptions and the eligibility of Investor to acquire the Securities.

4.4           Legend. Investor understands that the certificates or other instruments representing the Shares, the Warrants and the Warrant Shares, until such time as the resale of the Shares and the Warrant Shares have been registered under the 1933 Act as contemplated by the Registration Rights Agreement shall bear any legend as required by the ”blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

	
5.

	
Covenants.

5.1           Joint Covenants. Each party shall use its best efforts timely to satisfy each of the covenants and conditions to be satisfied by it as provided in Sections 7 and 8 of this Agreement.

5.2           Investor Covenants. Investor covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it will engage in any transactions in the securities of the Company (including short sales) prior to the time that the transactions contemplated by this Subscription Agreement are publicly disclosed.

5.3           Company Covenants.

 (a)           Form D and Blue Sky. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof to each Investor promptly after such filing. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to Investor at the Closing pursuant to this Agreement under applicable securities or ”Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to Investor on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable securities or ”Blue Sky” laws of the states of the United States following the Closing Date.

  

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 (b)           Reporting Status. Until the date on which Investor shall have sold all the Shares and Warrant Shares and none of the Warrants is outstanding (the ”Reporting Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act and, until the later of (i) two (2) years from the date hereof and (ii) such time as Investor owns less than an aggregate of 5% of the Shares and/or Warrant Shares (after giving effect to any stock splits, recapitalizations, reorganizations or similar events) the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would otherwise permit such termination.

 

 (c)           Financial Information. The Company agrees to send the following to Investor during the Reporting Period unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one (1) Business Day after the filing thereof with the SEC: (i) a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile or e-mailed copies of all press releases issued by the Company or any of its Subsidiaries, and (iii) copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders. As used herein, ”Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

 (d)           Listing. The Company shall promptly secure the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which the shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Registrable Securities from time to time issuable under the terms of the Transaction Documents. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the OTCBB. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.3(d).

 (e)           Pledge of Securities. The Company acknowledges and agrees that the Securities may be pledged by Investor in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by an Investor.

  

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 (f)           Disclosure of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York City Time, on the first Business Day after the date of this Agreement, issue a press release (the “Press Release”) reasonably acceptable to Investor disclosing all material terms of the transactions contemplated hereby; provided, that no Press Release shall name Investor or any of its members or affiliates, without the prior written consent of Investor, which shall not be unreasonably withheld. No later than the fourth Business Day following the Closing Date, the Company shall file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement, the form of Warrant and the Registration Rights Agreement) as exhibits to such filing (including all attachments, the “8-K Filing”). Subject to the foregoing, neither the Company, its Subsidiaries nor Investor shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of Investor, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations, including the applicable rules and regulations of the OTCBB (provided that in the case of clause (i) Investor shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of Investor, the Company shall not disclose the name of any Investor (or any of its members or affiliates) in any filing, announcement, release or otherwise.

 

 (g)           Additional Registration Statements. Until the date that the Registration Statement (as defined in the Registration Rights Agreement) is first declared effective by the SEC (the “Effective Date”), the Company will not file a registration statement under the 1933 Act relating to securities that are not the Securities, except for any Form S-8.

 (h)           Reservation of Shares. The Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance from and after the Closing Date, no less than the maximum number of shares of Common Stock issuable upon exercise of the Warrants including any indeterminate number of shares issuable pursuant to the provisions thereof (without taking into account any limitations on the exercise of the Warrants set forth in the Warrants).

	
6.

	
TRANSFER RESTRICTIONS; TRANSFER AGENT INSTRUCTIONS.

6.1           Transfer Restrictions. The legend set forth in Section 4.4 shall be removed and the Company shall issue a certificate without such legend or any other legend to the holder of the applicable Securities upon which it is stamped, if (a) such Securities are registered for resale under the 1933 Act, (b) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such sale, assignment or transfer of such Securities may be made without registration under the applicable requirements of the 1933 Act, or (c) such holder provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144. The Company shall cause Company Counsel (as later defined) to issue a legal opinion to the Company’s transfer agent on the Effective Date. Following the Effective Date or at such earlier time as a legend is no longer required for certain Securities, the Company will no later than three Business Days following the delivery by a Investor to the Company or the Company’s transfer agent of a legended certificate representing such Securities, deliver or cause to be delivered to Investor a certificate representing such Securities that is free from all restrictive and other legends. Following the Effective Date and upon the delivery to any Investor of any certificate representing Securities that is free from all restrictive and other legends, Investor agrees that any sale of such Securities shall be made pursuant to the Registration Statement and in accordance with the plan of distribution described therein or pursuant to an available exemption from the registration requirements of the 1933 Act. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in Section 4.4.

  

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6.2           Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent, to issue certificates or credit shares to the applicable balance accounts at The Depository Trust Company (“DTC”), registered in the name of Investor or its respective nominee(s), for the Warrant Shares in such amounts as specified from time to time by each Investor to the Company upon exercise of the Warrants (the “Irrevocable Transfer Agent Instructions”). The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 6.2, and stop transfer instructions to give effect to Section 4.4 hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as and to the extent provided in this Agreement and the other Transaction Documents. If a Investor effects a sale, assignment or transfer of the Securities, the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by Investor to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or pursuant to Rule 144, the transfer agent shall issue such Securities to Investor, assignee or transferee, as the case may be, without any restrictive legend.

6.3           Breach. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to Investor. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Article 6 will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Article 6, that Investor shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required.

6.4           Additional Relief. If the Company shall fail for any reason or for no reason to issue to Investor unlegended certificates within three (3) Business Days of receipt of documents necessary for the removal of legend set forth above (the “Deadline Date”), then, in addition to all other remedies available to Investor, if on or after the Business Day immediately following such three Business Day period, Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the holder of shares of Common Stock that Investor anticipated receiving from the Company (a “Buy-In”), then the Company shall, within five (5) Business Days after Investor’s request, promptly honor its obligation to deliver to Investor a certificate or certificates representing such shares of Common Stock and pay cash to Investor in an amount equal to the excess (if any) of Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock purchased in such Buy-In over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on the Deadline Date. In addition, if within three Business Days of delivery of such certificate or certificates to Investor, Investor shall sell shares of Common Stock represented by such certificate or certificates at a price per share less than the Closing Bid Price on the Deadline Date, the Company shall pay cash to Investor in an amount equal to the excess of such Closing Bid Price times the number of shares so sold over Investor’s total proceeds (less brokerage commissions, if any) from the sale of such shares. Notwithstanding the foregoing, in the event the Company fails to honor its obligation to deliver Investor a certificate or certificates representing such shares of Common Stock within such five (5) Business Day period, the Company shall pay cash to Investor in an amount equal to (i) Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased in such Buy-In less (ii) any payments previously made by the Company to Investor pursuant to the first sentence of this Section 6.4, at which point the Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) shall terminate. “Closing Bid Price” means, for any security as of any date, the last closing price for such security on the OTCBB, as reported by Bloomberg, or, if the OTCBB begins to operate on an extended hours basis and does not designate the closing bid price then the last bid price of such security prior to 4:00 p.m., New York Time, as reported by Bloomberg, or, if the OTCBB is not the principal securities exchange or trading market for such security, the last closing price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price of such security on such date shall be the fair market value as mutually determined by the Company and the holder. If the Company and the holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 13 of the Warrants. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

  

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7.

	
CONDITIONS TO THE COMPANY’S OBLIGATIONS HEREUNDER.

7.1          The obligation of the Company hereunder to issue and sell the Shares and the related Warrants to each Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing each Investor with prior written notice thereof:

 (a)           Investor shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 (b)           Investor shall have delivered to the Company and the Escrow Agent written instructions to disburse the Purchase Price for the Shares and the related Warrants being purchased by Investor at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 (c)           The representations and warranties of each Investor shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and each Investor shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by each Investor at or prior to the Closing Date.

	
8.

	
CONDITIONS TO INVESTOR’S OBLIGATIONS HEREUNDER.

8.1          The obligation of each Investor hereunder to purchase the Shares and the related Warrants at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for each Investor’s sole benefit and may be waived by Investor at any time in its sole discretion by providing the Company with prior written notice thereof:

 (a)           The Company shall have executed (or caused to be executed) and delivered to Investor (i) each of the Transaction Documents by the Company and each of the other parties thereto (other than the Investor) and (ii) the Warrants (in such amounts as Investor shall request) being purchased by Investor at the Closing pursuant to this Agreement, and shall have irrevocably instructed the Transfer Agent to deliver the Shares (in such amounts as Investor shall request) as provided for herein.

  

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 (b)           Investor shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 (c)           Such Investor shall have received the opinion of Carlton Fields, P.A., the Company’s outside counsel (the “Company Counsel”), dated as of the Closing Date, in substantially the form of Exhibit F attached hereto.

 (d)           The Company shall have delivered to Investor a certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within 10 days of the Closing Date.

 (e)           The Company shall have delivered evidence of the action of its board of directors and shareholders approving (as applicable) the transactions contemplated by the Transaction Documents including, but not limited to, the election of the Investor’s designee to the Company’s board of directors as required under the Voting Agreement.

 (f)           The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date (except such representations and warranties that are qualified by materiality, which shall be true and correct in all respects) as though made at that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 (g)           The Common Stock (i) shall be designated for quotation or listed on the OTCBB and (ii) shall not have been suspended, as of the Closing Date, by the SEC or the OTCBB from trading on the OTCBB nor shall suspension by the SEC or the OTCBB have been threatened, as of the Closing Date, either (A) in writing by the SEC or the OTCBB or (B) by falling below the minimum listing maintenance requirements of the OTCBB.

 (h)           The Company shall have obtained all governmental, regulatory or third party licenses, waivers, consents and approvals, if any, necessary for the sale of the Shares and the Warrants.

 (i)           No proceeding shall have been commenced on any grounds to restrain, enjoin or hinder the consummation of the transactions contemplated by this Agreement and no law shall have been enacted or promulgated by any governmental authority that prohibits the consummation of the transactions contemplated by this Agreement.

 (j)           The Company shall have delivered to Investor, a summary of the capitalization of the Company, on a fully diluted basis, immediately preceding and following the closing of the Company’s aggregate fundraising (from all sources) related to the Transaction Documents.

 (k)           The Company shall have delivered to Investor the form of 8-K proposed to be filed in connection with the transactions contemplated by this Agreement.

 (l)           No event, circumstances or fact shall have occurred that has had or could reasonably be expected to have a material adverse effect on the business, assets, properties or condition (financial or otherwise) of the Company and any of its Subsidiaries.

  

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 (m)           The Company shall have raised at least $2,000,000 in gross proceeds from the simultaneous private sale of Common Stock and Warrants (including amounts invested by Investor through the Escrow Agreement), in each case at the same price, and the Company shall have satisfied the other requirements of the Escrow Agreement.

 (n)           The Company shall have delivered to Investor such other documents relating to the transactions contemplated by this Agreement as Investor or its counsel may reasonably request.

	
9.

	
Termination.

In the event that the Closing shall not have occurred with respect to Investor on or before thirty (30) days from the date hereof due to the Company’s or Investor’s failure to satisfy the conditions set forth in Sections 7 and 8 above (and the nonbreaching party’s failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of any party to any other party. In the event of any termination of this Agreement, other than arising out of Investor’s failure to satisfy the conditions set forth in Section 7, the Company shall bear all Expenses (as later defined) of Investor in an amount, as incurred by Investor, up to fifty thousand dollars ($50,000).

	
10.

	
Miscellaneous.

10.1        This Subscription Agreement constitutes the entire understanding and agreement between the parties with respect to its subject matter and there are no agreements or understandings with respect to the subject matter hereof which are not contained in this Subscription Agreement. This Subscription Agreement may be modified only in writing signed by the parties hereto. The Company represents and warrants that it is not entering into any subscription agreement or securities purchase agreement with any other investor concurrently with this Subscription Agreement that contains terms more advantageous to such other investor than the terms of this Subscription Agreement are to Investor. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of the Shares or the Warrants. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of Investor, including by merger or consolidation. Investor may assign some or all of its rights hereunder in connection with transfer of any of its Securities without the consent of the Company, in which event such assignee shall be deemed to be Investor hereunder with respect to such assigned rights.

10.2        Each party hereto shall bear all fees and expenses incurred by such party in connection with, relating to or arising out of the negotiation, preparation, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement, including financial advisors’, attorneys’, accountants’ and other professional fees and expenses in connection with the transactions contemplated in this Agreement and the other Transaction Documents (the “Expenses”); provided; however, that the Company shall bear all such reasonable fees and expenses of Investor in an amount, as incurred by Investor, up to fifty thousand dollars ($50,000) which shall be deducted out of the proceeds in the Investor’s investment.

10.3        All representations, warranties, and agreements of the Company herein shall survive delivery of, and payment for, the Shares hereunder.

 

10.4        This Subscription Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. Execution may be made by delivery of a facsimile or PDF.

  

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10.5        The provisions of this Subscription Agreement are severable and, in the event that any court or officials of any regulatory agency of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Subscription Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Subscription Agreement and this Subscription Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible, so long as such construction does not materially adversely affect the economic rights of either party hereto.

10.6        The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

10.7        All communications hereunder shall be in writing and shall be mailed, hand delivered, sent by a recognized overnight courier service such as FedEx, or sent via facsimile and confirmed by letter, to the party to whom it is addressed at the following addresses or such other address as such party may advise the other in writing:

To the Company: as set forth on the signature page hereto.

To Investor: as set forth on the signature page hereto.

All notices hereunder shall be effective upon receipt by the party to which it is addressed.

10.8        This Subscription Agreement shall be governed by and interpreted in accordance with the laws of the State of New York for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. To the extent determined by such court, the prevailing party shall reimburse the other party for any reasonable legal fees and disbursements incurred in enforcement of, or protection of any of its rights under this Subscription Agreement.

[Signature Pages Follow.]

  

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IN WITNESS WHEREOF, the parties hereto have executed this Subscription Agreement effective as of the date first written above.

 

	The Company:	TRUNITY HOLDINGS, INC.
	 	 	 
	 	By:  	 
	 	Name: Terry Anderton
	 	Title: Chairman and CEO

 

Address for Notice:

Trunity Holdings, Inc.

15 Green Street

Newburyport, MA 01950

Attention: Terry Anderton, CEO

Fax: (603) 218-6006

With a copy to (which shall not constitute notice):

Robert B. Macaulay, Esq.

Carlton Fields, P.A.

Miami Tower

100 SE Second Street, Suite 4200

Miami, FL 33131

Fax: (305) 530-0055

 

SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

  

  

  

 

	 	 	INVESTOR:
	 	 	 	 
	 	 	(Print Name of Investor)
	 	 	 	 	 	 
	Number of Shares:	 	By: 	 	 
	 	 	 	 	 	 
	 	 	Name: 	 
	 	 	 	 	 	 
	Purchase Price per Share: $0.40	 	Its:	  	 	 

 

Name and address in which the Shares should be registered:

 

	Name:     	 	 	 
	 	 	 	 
	Address:   	 	 

 

Address for Notice:

Pan-African Investment Company, LLC

52 Vanderbilt Avenue, Suite 401

New York, NY 10017

	Facsimile:   	(212) 425-4199
	Attention:  	Dana M. Reed, Co-CEO

 

With a copy (which shall not constitute notice) to:

Reed Smith, LLP

599 Lexington Avenue, 22nd Floor

New York, New York 10022

	Telephone:    	(212) 549-0378
	Facsimile:  	(212) 521-5450
	Attention: 	Yvan Claude Pierre, Esq.

 

SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

  

  

  

 

EXHIBIT A

 

 

Please see attached.

 

  

A-1

  

 

EXHIBIT B

 

 

Please see attached.

 

  

B-1

  

 

EXHIBIT C

 

 

Please see attached.

 

  

C-1

  

 

EXHIBIT D

 

 

Please see attached.

 

  

D-1

  

 

EXHIBIT E

 

 

Please see attached.

 

  

E-1

  

 

EXHIBIT F

 

 

Please see attached.

 

F-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}]]