Document:

exv4w5

 

Exhibit 4.5

CONFORMED COPY

Dated 20 March 2003

£600,000,000 Revolving Credit Facilities

for

BRITISH SKY BROADCASTING GROUP PLC

Guaranteed by

CERTAIN SUBSIDIARIES OF

BRITISH SKY BROADCASTING GROUP PLC

Arranged by

BARCLAYS CAPITAL

DEUTSCHE BANK AG LONDON

and

SALOMON BROTHERS INTERNATIONAL LIMITED

Agent

BARCLAYS BANK PLC

FACILITY AGREEMENT

 

 

Contents

	 	 	 	 	 	 
	Clause	 	Page
	SECTION 1
	 	 	5	 
	INTERPRETATION
	 	 	5	 
	1     Interpretation
	 	 	5	 
	2     Construction
	 	 	17	 
	SECTION 2 THE FACILITIES
	 	 	21	 
	3     The Facilities
	 	 	21	 
	4     Purpose
	 	 	21	 
	5     Conditions of Utilisation
	 	 	21	 
	SECTION 3 UTILISATION
	 	 	23	 
	6     Utilisation
	 	 	23	 
	7     Optional Currencies
	 	 	27	 
	SECTION 4 REPAYMENT, PREPAYMENT AND CANCELLATION
	 	 	29	 
	8     Repayment
	 	 	29	 
	9     Prepayment and cancellation
	 	 	29	 
	SECTION 5 COSTS OF UTILISATION
	 	 	32	 
	10     Interest
	 	 	32	 
	11     Interest Periods
	 	 	33	 
	12     Changes to the calculation of interest
	 	 	33	 
	13     Fees
	 	 	34	 
	SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS
	 	 	36	 
	14     Tax gross up and indemnities
	 	 	36	 
	15     Increased costs
	 	 	39	 
	16     Other indemnities
	 	 	40	 
	17     Mitigation by the Lenders
	 	 	41	 
	18     Costs and expenses
	 	 	41	 
	SECTION 7 GUARANTEE
	 	 	43	 
	19     Guarantee and indemnity
	 	 	43	 
	SECTION 8 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
	 	 	48	 

 

 

	 	 	 	 	 	 
	 	 	 
	20     Representations
	 	 	48	 
	21     General undertakings
	 	 	51	 
	22     Events of Default
	 	 	58	 
	SECTION 9 CHANGES TO PARTIES
	 	 	62	 
	23     Changes to the Lenders
	 	 	62	 
	24     Changes to the Obligors
	 	 	64	 
	SECTION 10
	 	 	65	 
	THE FINANCE PARTIES
	 	 	65	 
	25     Role of the Agent and the Mandated Lead Arrangers
	 	 	65	 
	26     Conduct of business by the Finance Parties
	 	 	69	 
	27     Sharing among the Finance Parties
	 	 	69	 
	SECTION 11 ADMINISTRATION
	 	 	71	 
	28     Payment mechanics
	 	 	71	 
	29     Set-off
	 	 	74	 
	30     Notices
	 	 	74	 
	31     Calculations and certificates
	 	 	75	 
	32     Partial invalidity
	 	 	75	 
	33     Remedies and waivers
	 	 	75	 
	34     Amendments and waivers
	 	 	76	 
	35     Counterparts
	 	 	77	 
	SECTION 12 GOVERNING LAW AND ENFORCEMENT
	 	 	78	 
	36     Governing law
	 	 	78	 
	37     Enforcement
	 	 	78	 
	Schedules
	 	 	 	 
	Schedule 1     The Original Parties
	 	 	79	 
	 	Part I — The Obligors
	 	 	79	 
	 	Part II — The Agent and the Original Lenders
	 	 	80	 
	Schedule 2     Conditions precedent
	 	 	84	 
	Schedule 3     Requests
	 	 	85	 
	 	Part I — Utilisation Request
	 	 	85	 

 

 

	 	 	 	 	 	 
	 	 	 
	 	Part II — Utilisation Request
	 	 	86	 
	Schedule 4     Mandatory Cost formulae
	 	 	87	 
	Schedule 5     Form of Transfer Certificate
	 	 	90	 
	Schedule 6     Form of Deed of Guarantor Accession
	 	 	91	 
	Schedule 7     Documents and evidence to be delivered by Acceding Guarantors
	 	 	92	 
	Schedule 8     Form of Compliance Certificate
	 	 	93	 
	Schedule 9     Timetables
	 	 	94	 
	Schedule 10     Form of Letter of Credit
	 	 	95	 

 

 

THIS AGREEMENT is dated 20 March 2003 and made BETWEEN:

	(1)	 	BRITISH SKY BROADCASTING GROUP PLC (the “Borrower”);
	 
	(2)	 	THE SUBSIDIARIES of the Borrower listed in Part I of Schedule 1 (The
Original Parties) as original guarantors (the “Original Guarantors”);
	 
	(3)	 	BARCLAYS CAPITAL, DEUTSCHE BANK AG LONDON and SALOMON BROTHERS
INTERNATIONAL LIMITED (the “Mandated Lead Arrangers”, and each an “MLA”);
	 
	(4)	 	THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original
Parties) as lenders (the “Original Lenders”); and
	 
	(5)	 	BARCLAYS BANK PLC as agent of the Lenders (the “Agent”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	1	 	Interpretation
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions upon and subject to which
the Lenders agree, according to their several obligations, to make
available to the Borrower under the guarantee of the Guarantors, a
revolving credit facility of up to £600,000,000 or the equivalent in
Optional Currencies for (i) the purpose of refinancing the Existing £750
million Facility and cancelling, in part, the Existing £300 million
Facility, and (ii) general corporate purposes and to finance the working
capital or capital expenditure requirements of the Group.
	 
	1.2	 	 Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	 	 	“Acceding Guarantors” means those Subsidiaries of the Borrower who have
become a party to this Agreement as Guarantors pursuant to clause 19.17
(Acceding Guarantors);
	 
	 	 	“Additional Cost” means, in relation to any period, a percentage
calculated for such period at an annual rate determined by the application
of the formula set out in Schedule 4 (Mandatory Cost formulae);
	 
	 	 	“Affiliate” means, in relation to any person, a Subsidiary of that person
or a Holding Company of that person or any other Subsidiary of that
Holding Company;
	 
	 	 	“Agent” means Barclays Bank PLC of 5 the North Colonnade, Canary Wharf,
London E14 4BB or such other person as may be appointed agent for the
Lenders pursuant to clause 25.11 (Resignation of the Agent);
	 
	 	 	“Agent’s Spot Rate of Exchange” means the Agent’s spot rate of exchange
for the purchase of any relevant currency with the Base Currency in the
London foreign exchange market at or about 11:00 a.m. on a particular day;
	 
	 	 	“Authorised Officer” means any director, employee or officer of the
Borrower or any other Obligor authorised to sign Authorised Officer’s
Compliance Certificates, Utilisation Requests and other notices, requests
or confirmations referred to in this Agreement or relating to the
Facilities;
	 
	 	 	“Available Commitment” means a Lender’s Commitment under the Facility
minus:

5

 

	 	(a)	 	the Base Currency Amount of its participation in any
outstanding Utilisations; and
	 
	 	(b)	 	in relation to any proposed Utilisation, the Base Currency
Amount of its participation in any Loans or other Utilisations that
are due to be made on or before the proposed Utilisation Date, other
than that Lender’s participation in any Utilisations that are due to
be repaid or prepaid on or before the proposed Utilisation Date;

	 	 	“Available Facility” means the aggregate for the time being of each
Lender’s Available Commitment in respect of the Facility;
	 
	 	 	“Availability Period” means the period from the date of this Agreement and
ending on the Termination Date or the period ending on such earlier date
(if any) (i) on which the whole of the undrawn Commitments are cancelled
or (ii) on which the Commitments are reduced to zero pursuant to clauses
22.2 (Acceleration) or 9.1 (Illegality);
	 
	 	 	“Banking Day” means:

	 	(a)	 	unless (b) below applies, a day (other than a Saturday or Sunday)
on which banks are open for business in:

	 	(i)	 	London; and
	 
	 	(ii)	 	if a payment is required in an Optional Currency (other
than euros), the principal financial centre of the country of
such Optional Currency; and

	 	(b)	 	in relation to a rate fixing for euros only, a TARGET Day;

	 	 	“Base Currency” means Sterling;
	 
	 	 	“Base Currency Amount” means, in relation to a Utilisation, the amount
specified in the Utilisation Request delivered by the Borrower for that
Utilisation (or, if the amount requested is not denominated in the Base
Currency, that amount converted into the Base Currency at the Agent’s Spot
Rate of Exchange on the date which is three Banking Days before the
Utilisation Date or, if later, on the date the Agent receives the
Utilisation Request and, in the case of a Letter of Credit, as adjusted
pursuant to clause 6.5.12 (Revaluation of Letters of Credit) at
six-monthly intervals) adjusted to reflect any repayment, (other than a
repayment arising from a change of currency), prepayment, consolidation or
division of the Utilisation;
	 
	 	 	“Borrower” means British Sky Broadcasting Group PLC (No. 2247735) whose
registered office is at Grant Way, Isleworth, Middlesex TW7 5QD;
	 
	 	 	“Break Costs” means the amount (if any) by which:

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

	 	 	exceeds:

	 	(b)	 	the amount which that Lender would be able to obtain by placing
an amount equal to the principal amount or Unpaid Sum received by it
on deposit with a leading bank in the Relevant Interbank Market for a
period starting on the Banking Day following receipt or recovery and
ending on the last day of the current Interest Period;

	 	 	“Broadcasting Law” means the Broadcasting Act 1990 (as supplemented by the
Broadcasting Act 1996) and all other laws, statutes, regulations and
judgments relating to broadcasting applicable to the Borrower (or any of
its Subsidiaries) and/or the business carried on by the Borrower (or any
of its Subsidiaries);

6

 

	 	 	“Cash and Cash Equivalents” means, at any time:

	 	(a)	 	cash in hand or on deposit with any acceptable institution
(including cash held in a Cash Collateral Account);
	 
	 	(b)	 	certificates of deposit, maturing within one year after the
relevant date of calculation, issued by an acceptable bank;
	 
	 	(c)	 	any investment in marketable obligations issued or guaranteed
by the government of the United Kingdom, the United States of America
or any other nation approved by the Agent or by an instrumentality or
agency of the government of the United Kingdom, the United States of
America or any other nation approved by the Agent having an
equivalent credit rating and a maturity within one year after the
relevant date of calculation;
	 
	 	(d)	 	open market commercial paper:

	 	(i)	 	for which a recognised trading market exists;
	 
	 	(ii)	 	issued in the United Kingdom, the United States of
America or other nation approved by the Agent;
	 
	 	(iii)	 	which matures within 90 days of the relevant date of
calculation; and
	 
	 	(iv)	 	which has a credit rating of either A-1 by Standard &
Poor’s or FitchIBCA or P-1 by Moody’s, or, if no rating is
available in respect of the commercial paper, the issuer of which
has, in respect of its long-term debt obligations, an equivalent
rating; or

	 	(e)	 	any other instrument, security or investment approved by the
Majority Lenders,

	 	 	in each case, to which any member of the Group is beneficially entitled at
that time and which is capable of being applied against Indebtedness. An
“acceptable institution” for this purpose is a commercial bank, investment
fund or trust company which has a rating of A or higher by Standard &
Poor’s or FitchIBCA or A2 or higher by Moody’s or a comparable rating from
an internationally recognised credit rating agency for its long-term debt
obligations or has been approved by the Majority Lenders;
	 
	 	 	“Cash Collateral Account” means an interest bearing blocked deposit
account in the name of the Borrower opened, or to be opened, with the
Agent or other relevant Finance Party (as the relevant provision of any
Finance Document so provides) pursuant to or otherwise in connection with
any Finance Document;
	 
	 	 	“Collateral Instruments” means notes, bills of exchange, certificates of
deposit and other negotiable and non-negotiable instruments, guarantees,
and any other documents or instruments which contain or evidence an
obligation (with or without security) to pay, discharge or be responsible
directly or indirectly for, any Indebtedness or liabilities under the
Finance Documents and includes Encumbrances;
	 
	 	 	“Commitment” means:

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

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

7

 

	 	 	“Commitment Letter” means the letter, dated 13 February 2003, between the
Borrower and the Mandated Lead Arrangers;
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form of
Schedule 8 (Form of Compliance Certificate) in relation to compliance (or
otherwise) with the undertakings in clause 21.3 (Financial undertakings);
	 
	 	 	“Consolidated Interest Charges” means, in respect of each Half Yearly
Period in each financial year of the Group, the aggregate amount of
interest, discounts, finance charges and/or fees accrued during that Half
Yearly Period in respect of Total Debt including, for this purpose, any
acceptance commission in respect of any bills of exchange or other
negotiable instruments, any initial issue discounts allowed on the issue
of debentures attributable to such Half Yearly Period (calculated on a pro
rata basis by reference to the initial term for which such debentures were
issued) and the interest component of rentals under Finance Leases, and
after deduction of the aggregate amount of interest received in respect of
deposits held with any banks or on commercial paper owned by any Group
Member during the same Half Yearly Period of the Group;
	 
	 	 	“Debt Instrument” means any debenture, bond, note, loan stock or other
similar security evidencing Indebtedness;
	 
	 	 	“Deed of Guarantor Accession” means a deed to be executed and delivered by
each relevant Group Member substantially in the form of Schedule 6 (Form
of Deed of Guarantor Accession);
	 
	 	 	“Deed of Subordination” means any instrument evidencing subordination and
priority arrangements entered or to be entered into pursuant to clause
21.2.5 (Indebtedness);
	 
	 	 	“Default” means an Event of Default or any event or circumstance specified
in clause 22 (Events of Default) which would (with the expiry of a grace
period, the giving of notice, the making of any determination (in each
case under or pursuant to the Finance Documents) or any combination of any
of the foregoing) be an Event of Default;
	 
	 	 	“Disclosure Letter” means the letter of even date written by the Borrower
to the Agent;
	 
	 	 	“Drawdown Notice” means a notice substantially in the terms of Schedule 3
(Requests);
	 
	 	 	“EBITDA” means, in respect of a Half Yearly Period, the consolidated
operating profit of the Group:

	 	(a)	 	in relation to each Half Yearly Period in each financial year
as shown in the relevant unaudited consolidated profit and loss
account provided to the Agent under this Agreement before:

	 	(i)	 	depreciation; and
	 
	 	(ii)	 	amortisation of goodwill but, for the avoidance of
doubt, not before any charge for the amortisation of any cost or
expense incurred in relation to the acquisition of rights to or
in connection with any programmes or films;

	 	 	 	but adjusted by excluding any EBITDA (whether positive or negative and
as determined in accordance with this definition) of any Special
Purpose Subsidiary;
	 
	 	(b)	 	in relation to the second Half Yearly Period in each financial
year only, as shown in the relevant audited consolidated profit and
loss account provided to the Agent under this Agreement before the
items referred to in (a)(i) and (ii) above and as adjusted as
referred to in (a) above and (in each case) by the deduction of the
amount calculated under (a) above in relation to the first Half
Yearly Period in such financial year; and
	 
	 	(c)	 	in addition to (a) above, in relation to each Half Yearly
Period from (and including) 31 December 2002 to (and including) 30
June 2004 adjusted by adding back (to the

8

 

	 	 	 	extent deducted in calculating consolidated operating profit) the
direct costs of subsidising digital set-top boxes and related
equipment provided to digital subscribers and the cost of installation
of digital services to such subscribers (net of any amount paid in
respect of such installation by such subscribers) (the “Costs”)
Provided that no such adjustments shall be made in respect of a Half
Yearly Period in respect of any Costs which exceed the amount set
against the relevant period in column (2) below:

	 	 	 	 	 
	(1)	 	(2)
	Period	 	Amount
	
	 	

	1 July 2002-31 December 2002
	 	 	£125,000,000	 
	1 January 2003-30 June 2003
	 	 	£100,000,000	 
	1 July 2003-31 December 2003
	 	 	£ 75,000,000	 
	1 January 2004 - 30 June 2004
	 	 	£ 50,000,000	 

	 	 	having made such adjustments and making such further adjustments as may be
appropriate in the opinion of the auditors of the Borrower in order that
all such amounts are calculated in accordance with the Original Accounting
Principles.
	 
	 	 	“Encumbrance” means any mortgage, charge (whether fixed or floating),
pledge, lien, hypothecation, assignment, trust arrangement or security
interest of any kind securing any obligation of any person or any other
type of preferential arrangement excluding (i) retention of title
arrangements in contracts entered into in the ordinary course of trading,
(ii) liens arising in the ordinary course of trading by operation of law,
(iii) contractual set-off or netting arrangements with a clearing bank in
the United Kingdom in respect of overdraft facilities made available to
any Group Member(s), and entered into for the netting of Group credit and
debit balances maintained with that bank, contractual set-off or netting
arrangements entered into with a financial institution in respect of
multiple hedging transactions with such financial institution, (iv) liens
or pledges created or subsisting in the ordinary course of trading over
documents of title, insurance policies or sale contracts in relation to
goods or assets supplied, to secure the purchase price of such goods or
assets and (v) deposits or escrow arrangements in the ordinary course of
trading in connection with the acquisition of any goods or assets or the
financing of any such acquisition or to secure performance bonds;
	 
	 	 	“Environmental Law” means any law or regulation relating to (a) the
pollution, conservation or protection of the environment (both natural and
built), (b) the creation, storage, handling and disposal of industrial
waste and hazardous substances and (c) health and safety at work or
elsewhere but excluding the Planning Acts (being the Town and Country
Planning Act 1990, the Planning (Listed Buildings and Conservation Areas)
Act 1990, the Planning (Consequential Provisions) Act 1990 and subordinate
legislation made thereunder);
	 
	 	 	“EURIBOR” means, in relation to any Loan or overdue amount in euro:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the period of that Loan or
overdue amount) the arithmetic mean of the rates (rounded upwards to
four decimal places) as supplied to the Agent at its request quoted
by the Reference Banks to leading banks in the European interbank
market,

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits
in euro for a period comparable to the Interest Period of the relevant
Loan;
	 
	 	 	“euro” and “€” mean the single currency of Participating Member States
introduced in accordance with the provisions of Article 109(1)4 of the
Treaty and in respect of all payments to be made under the Finance
Documents in euro means immediately available, freely transferable funds;

9

 

	 	 	“Event of Default” means any event or circumstance specified as such in
clause 22 (Events of Default);
	 
	 	 	“Executive Officers” means, in relation to the Borrower, the Chief
Executive, the Chief Operating Officer, the Head of Legal and Business
Affairs, the Managing Director of Sky Networks, the Chief Financial
Officer, the Managing Director of Sky Sports and the Company Secretary and
any other officer of the Borrower who, at any relevant time, is
responsible for all or any of the management functions of any such person
as at the date of this Agreement in place of such person and, in relation
to any other Obligor, its Directors;
	 
	 	 	“Existing £750 million Facility” means the £750,000,000 multi-currency
revolving credit facility made available to British Sky Broadcasting Group
plc on the terms and conditions set out in an agreement dated 29 June 1999
(as amended from time to time) in respect of which The Toronto-Dominion
Bank acts as agent;
	 
	 	 	“Existing £300 million Facility” means the £300,000,000 multi-currency
revolving credit facility made available to British Sky Broadcasting Group
plc on the terms and conditions set out in an agreement dated 8 March 2001
(as amended from time to time) in respect of which The Toronto-Dominion
Bank acts as agent;
	 
	 	 	“Expiry Date” means, in respect of a Letter of Credit, the last day of its
Term;
	 
	 	 	“Facility” means the revolving loan facility made available under this
Agreement as described in clause 3 (The Facilities);
	 
	 	 	“Facility Office” means the office or offices notified by a Lender to the
Agent in writing on or before the date it becomes a Lender (or, following
that date, by not less than five Banking Days’ written notice) as the
office or offices through which it will perform its obligations under this
Agreement;
	 
	 	 	“Fee Letter” means any letter or letters dated on or about the date of
this Agreement between the Mandated Lead Arrangers and the Borrower (or
the Agent and the Borrower) setting out the terms of any of the fees
referred to in clause 13 (Fees);
	 
	 	 	“Finance Document” means this Agreement, the Commitment Letter, any
Transfer Certificate, any Fee Letter, any Deed of Subordination, any Deed
of Guarantor Accession, any Letter of Credit, and any other document
designated as such by the Agent and the Borrower;
	 
	 	 	“Finance Lease” means a lease treated as a finance lease in accordance
with Statement of Standard Accounting Practice 21 as amended or as
substituted by any generally accepted accounting principles in the United
Kingdom from time to time;
	 
	 	 	“Finance Parties” means the Agent, the Mandated Lead Arrangers and
the Lenders, and “Finance Party” means any of them;
	 
	 	 	“Financial Definitions” means the definitions of each of Consolidated
Interest Charges, EBITDA, Net Debt and Total Debt;
	 
	 	 	“Group” means the Borrower and its Subsidiaries, excluding, for the
avoidance of doubt, any joint venture company in which the Group Members,
taken as a whole, have a minority shareholding, or do not have the right
to appoint or remove a majority of its board of directors, or do not have
sole control of a majority of the voting rights in it;
	 
	 	 	“Group Member” means any member of the Group;
	 
	 	 	“Guaranteed Liabilities” means all moneys, obligations and liabilities
expressed to be guaranteed by the Guarantors in clause 19.1 (Covenant to
pay);
	 
	 	 	“Guarantors” means the Original Guarantors and the Acceding Guarantors
(other than any such Original Guarantor or Acceding Guarantor as has been
released from this Agreement

10

 

	 	 	pursuant to clause 19.18 (Release of Guarantors) and has not since become
an Acceding Guarantor again pursuant to clause 19.17 (Acceding
Guarantors));
	 
	 	 	“Half-Yearly Period” means each reporting period for the Group of six
months ending on 30th June or 31st December in any year;
	 
	 	 	“Hedging Arrangement” means any arrangements, whether by way of swap, cap,
collar or otherwise in relation to the hedging of any interest rate or
currency exposure of any Group Member which, in each case, has a term
which is greater than twelve months from the relevant date of calculation
pursuant to the provisions of clause 21.3 (Financial undertakings);
	 
	 	 	“Holding Company” means a holding company within the meaning of section
736 Companies Act, 1985;
	 
	 	 	“Incapacity” means in relation to a person the death, bankruptcy,
unsoundness of mind, insolvency, liquidation, dissolution, winding-up,
administration, receivership, amalgamation, reconstruction or other
incapacity of that person whatsoever (and, in the case of a partnership,
includes the termination or change in the composition of the partnership);
	 
	 	 	“Indebtedness” means any obligation for the payment or repayment of money,
whether as principal or surety, and whether present or future, in respect
of:

	 	(a)	 	money borrowed or raised and debit balances at banks;
	 
	 	(b)	 	any bond, note, loan stock, debenture or other similar debt
instrument;
	 
	 	(c)	 	any amount raised by acceptance or documentary credit
facilities;
	 
	 	(d)	 	receivables sold or discounted (other than on a non-recourse
basis);
	 
	 	(e)	 	deferred payments for assets or services acquired (other than
in the ordinary course of trading or pursuant to a genuine trade
dispute);
	 
	 	(f)	 	the capital element of Finance Leases;
	 
	 	(g)	 	any other transaction (including forward sale or purchase
agreements) having the commercial effect of a borrowing or raising of
money, or of any of (a) to (f) above;
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, standby or documentary letter of credit or any other
instrument (other than any such guarantee, indemnity, bond, standby
or documentary letter of credit or other instrument which relates
solely to a performance obligation) issued by a bank or financial
institution; and
	 
	 	(i)	 	without duplication, guarantees in respect of the obligations
of any person falling within any of (a) to (h) above;

	 	 	“Information Memorandum” means the document in the agreed form concerning
the Group which, at the Company’s request and on its behalf, was prepared
in relation to this Agreement and distributed by the Mandated Lead
Arrangers to selected financial institutions prior to the date of this
Agreement;
	 
	 	 	“Interest Period” means, in relation to a Loan, each period determined in
accordance with clause 11 (Interest Periods) and, in relation to an
Unpaid Sum, each period determined in accordance with clause 10.3
(Default interest);
	 
	 	 	“LC Limit” means £100,000,000 (or its equivalent in Optional Currencies);
	 
	 	 	“LC Liabilities” means, in relation to any Letter of Credit, at any
relevant time, the stated maximum principal amount that may be or become
payable to the beneficiary of such Letter of

11

 

	 	 	Credit and/or any amount that had been properly paid by the Lenders to
such beneficiary but which has not been reimbursed to the Lenders pursuant
to 6.5.3(b) (Claims under a Letter of Credit), less the aggregate amount
of any cash cover (not including any cash cover lodged by any Lender) held
in relation to that Letter of Credit or such lesser amount as the Agent
may agree with the Borrower, both acting in good faith, represents the
maximum liability of the Lenders in respect thereof;
	 
	 	 	“Lender” means:

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any bank or financial institution which has become a Party in
accordance with clause 23 (Changes to the Lenders),

	 	 	which in each case has not ceased to be a Party in accordance with the
terms of this Agreement;
	 
	 	 	“Letter of Credit” or “LC” means any guarantee, bond, indemnity, letter of
credit, or any other instrument of suretyship or payment, issued,
undertaken or made or, as the case may be, proposed to be issued,
undertaken or made by the Lenders under this Agreement at the request of
the Borrower, in each case in a form substantially similar to that set out
in Schedule 10 (Form of Letter of Credit) or otherwise on terms agreed
between the Agent (with the prior consent of the Lenders) and the Borrower
(each acting reasonably) and as the same may be varied from time to time;
	 
	 	 	“LIBOR” means, in relation to any Loan or overdue amount due in a currency
other than euro:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the currency or period of
that Loan or overdue amount) the arithmetic mean of the rates
(rounded upwards to four decimal places) as supplied to the Agent at
its request quoted by the Reference Banks to leading banks in the
London interbank market,

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits
in the currency of that Utilisation and for a period comparable to the
Interest Period for that Loan;
	 
	 	 	“Licences” means licences granted under any Broadcasting Law and held by
any Group Member;
	 
	 	 	“Loan” means a loan made or to be made by way of cash advance under the
Facility or the principal amount outstanding for the time being of that
loan;
	 
	 	 	“Mandated Lead Arrangers” or “MLAs” means Barclays Capital of 5 the North
Colonnade, Canary Wharf, London E14 4BB, Deutsche Bank AG London of
Winchester House, 1 Great Winchester Street, London EC2N 2DB and Salomon
Brothers International Limited of 33 Canada Square, Canary Wharf, London
E14 4BB;
	 
	 	 	“Majority Lenders” means:

	 	(a)	 	if there are no Utilisations then outstanding, a Lender or
Lenders whose Commitments aggregate more than 662/3% of the Total
Commitments (or, if the Total Commitments have been reduced to zero,
aggregated more than 662/3% of the Total Commitments immediately
prior to the reduction); or
	 
	 	(b)	 	at any other time, a Lender or Lenders whose participation in
the Utilisations then outstanding aggregate more than 662/3% of all
the Utilisations then outstanding;

12

 

	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the
Agent in accordance with Schedule 4 (Mandatory Cost formulae);
	 
	 	 	“Margin” means the rate per annum calculated in accordance with 10.1.1
(Calculation of Margin);
	 
	 	 	“month” means a period beginning in one calendar month and ending in the
next calendar month on the day numerically corresponding to the day of the
calendar month on which it started, provided that (i) if the period
started on the last Banking Day in a calendar month or if there is no such
numerically corresponding day, it shall end on the last Banking Day in
such next calendar month and (ii) if such numerically corresponding day is
not a Banking Day, the period shall end on the next following Banking Day
in the same calendar month but if there is no such Banking Day it shall
end on the preceding Banking Day and “months” and “monthly” shall be
construed accordingly;
	 
	 	 	“Net Debt” means Total Debt excluding, for the purposes of this definition
only, any amounts in respect of item (a) and, when such preference share
capital is not redeemable, item (b) of the definition of “Total Debt”,
less:

	 	(i)	 	the aggregate principal amount of Subordinated Loans;
	 
	 	(ii)	 	accrued but unpaid interest in respect of Subordinated Loans;
and
	 
	 	(iii)	 	Cash and Cash Equivalents

	 	 	but including, for the purposes of clause 21.3.1 (Net Debt: EBITDA) only,
the principal amount of any Indebtedness of any person other than a Group
Member which is guaranteed by any Group Member;
	 
	 	 	“Non-Recourse Liabilities” means liabilities of a Special Purpose
Subsidiary where such liabilities are not the subject of any guarantee,
indemnity or similar assurance from any other Group Member other than a
Permitted Assurance and, except for recourse in respect of such Permitted
Assurance, there is no other recourse for any payment in respect of such
liabilities to the assets of any other Group Member other than recourse to
the shares in such Special Purpose Subsidiary charged as security for such
liabilities;
	 
	 	 	“Obligors” means the Borrower and each Guarantor;
	 
	 	 	“Optional Currency” means a currency (other than the Base Currency) which
complies with the conditions set out in clause 5.3 (Conditions relating
to Optional Currencies);
	 
	 	 	“Original Accounting Principles” means those accounting principles,
standards and practices which were used in the preparation of the
consolidated audited financial statements of the Group as at 30 June 2002;
	 
	 	 	“Original Guarantors” means the Borrower, and those Subsidiaries of the
Borrower listed as such whose names and registered offices or principal
places of business are set out in part I of Schedule 1 (The Original
Parties);
	 
	 	 	“Original Lenders” means the financial institutions listed in part II of
Schedule 1 (The Original Parties);
	 
	 	 	“Original Ultimate Shareholder” means The News Corporation Limited;
	 
	 	 	“Participating Member State” means any member state of the European
Communities that adopts or has adopted the euro as its lawful currency in
accordance with legislation of the European Union relating to Economic and
Monetary Union;

13

 

	 	 	“Party” means a party to this Agreement and includes its successors in
title, permitted assigns and permitted transferees;
	 
	 	 	“Permitted Assurance” means any assurance, undertaking or support given by
a Group Member provided that the same shall be given by such Group Member:

	 	(a)	 	other than in respect of a payment obligation or an indemnity
in respect thereof or any obligation to comply with any financial
ratios or other tests of financial condition; and
	 
	 	(b)	 	generally in the ordinary course of its business;

	 	 	“Permitted Securitisation” means, without prejudice to the ability of the
Group to otherwise effect any securitisation in accordance with the
provisions of this Agreement, a securitisation or securitisations of
assets by a Group Member provided that the aggregate value (without
double-counting) of:

	 	(a)	 	all assets of the Group which are subject to such
securitisation or securitisations;
	 
	 	(b)	 	all loans of cash or assets made pursuant to such
securitisation or securitisations;
	 
	 	(c)	 	all disposals made pursuant to such securitisation or
securitisations;
	 
	 	(d)	 	all Encumbrances granted pursuant to such securitisation or
securitisations; and
	 
	 	(e)	 	all assets encumbered pursuant to clause 21.2.1(c) (Negative
Pledge),

	 	 	shall not exceed £300,000,000 in any event.
	 
	 	 	“Qualifying Lender” has the meaning given to it in clause 14 (Tax
gross-up and indemnities);
	 
	 	 	“Quotation Day” means, in relation to any period for which an interest
rate is to be determined:

	 	(a)	 	(if the currency is Sterling) the first day of that period;
	 
	 	(b)	 	(if the currency is euro) two TARGET Days before the first day
of that period; or
	 
	 	(c)	 	(for any other currency) two Banking Days before the first day
of that period,

	 	 	unless market practice differs in the Relevant Interbank Market for a
currency, in which case the Quotation Day for that currency will be
determined by the Agent in accordance with market practice in the Relevant
Interbank Market (and if quotations would normally be given by leading
banks in the Relevant Interbank Market on more than one day, the Quotation
Day will be the last of those days);
	 
	 	 	“Reference Banks” means the principal London offices of Barclays Bank PLC,
Citibank N.A. and Deutsche Bank AG London or such other banks as may be
appointed by the Agent in consultation with the Borrower pursuant to
clause 25.16 (Reference Banks);
	 
	 	 	“Relevant Interbank Market” means in relation to euro, the European
interbank market and, in relation to any other currency, the London
interbank market;
	 
	 	 	“Relevant Jurisdiction” means each jurisdiction in which any Obligor is
incorporated or formed;
	 
	 	 	“Relevant Proportion” means, in relation to a Lender in respect of any
Letter of Credit at any relevant time, the proportion which that Lender’s
Commitment bears to the Total Commitments at such time but so that if at
such time such Lender’s Commitment has been reduced pursuant to clause
9.1 (Illegality), 9.4 (Right of repayment in relation to a single
Lender) or 9.5 (Change of Control) then as amongst the Finance Parties
(but not so as to give any rights to any other

14

 

	 	 	person and for the purpose of this definition only) such Lender’s
Commitment shall not be deemed to have been reduced to the extent that the
Borrower does not discharge the LC Liabilities representing such Lender’s
Commitment;
	 
	 	 	“Renewal Request” means a written notice delivered to the Agent in
accordance with clause 6.5.8 (Renewal of a Letter of Credit);
	 
	 	 	“Repeating Representations” means each of the representations set out in
clause 20.1.1 (Due incorporation of the Borrower) to 20.1.8 (No
litigation) (inclusive) and 20.1.10 (Financial statements of the Obligors
correct and complete);
	 
	 	 	“Reporting Accounting Principles” means those accounting principles,
standards and practices adopted by the Group from time to time in
accordance with generally accepted accounting principles and practices in
England and Wales and/or international accounting standards;
	 
	 	 	“Rollover Loan” means one or more Loans:

	 	(a)	 	made or to be made on the same day that a maturing Loan under
the Facility is due to be repaid;
	 
	 	(b)	 	the aggregate amount of which is equal to or less than the
maturing Loan;
	 
	 	(c)	 	in the same currency as the maturing Loan (unless it arose as a
result of the operation of clause 7.2 (Unavailability of a
currency)); and
	 
	 	(d)	 	made or to be made to the Borrower for the purpose of
refinancing a maturing Loan;

	 	 	“Screen Rate” means:
	 

	 	(a)	in relation to LIBOR, the British Bankers Association Interest
Settlement Rate for the relevant currency and period; and
	 
	 	(b)	in relation to EURIBOR, the percentage rate per annum
determined by the Banking Federation of the European Union for the
relevant period,
	 

	 	 	displayed on the appropriate page of the Telerate screen. If the agreed
page is replaced or service ceases to be available, the Agent may specify
another page or service displaying the appropriate rate after consultation
with the Borrower and the Lenders;
	 
	 	 	“Specified Time” means a time determined in accordance with Schedule 9
(Timetables);
	 
	 	 	“Special Purpose Subsidiary” means a Group Member (which is not an
Obligor) whose principal assets and business are constituted by the
ownership, acquisition, development and/or operation of particular assets
whether directly or indirectly and whose only liabilities are Non-Recourse
Liabilities;
	 
	 	 	“Sterling” and “£” mean the lawful currency for the time being of the
United Kingdom and in respect of all payments to be made under the Finance
Documents in Sterling mean immediately available, freely transferable
cleared funds;
	 
	 	 	“Sterling Amount” means (a) in relation to a Utilisation to be made in
Sterling the amount in Sterling so utilised, and (b) in relation to a
Utilisation to be made in an Optional Currency, the amount in Sterling
specified in the relevant Utilisation Request which would be required to
purchase the principal amount of that Utilisation at the Agent’s Spot Rate
of Exchange, in each case as reduced by any repayment or prepayment under
this Agreement;

15

 

	 	 	“Subordinated Loans” means any Indebtedness in relation to which

subordination and priority arrangements have been entered into in
accordance with the provisions of clause 21.2.5(i) and (ii)
(Indebtedness);
	 
	 	 	“Subsidiary” means:

	 	(a)	 	a subsidiary within the meaning of section 736 Companies Act
1985; and
	 
	 	(b)	 	for the purposes of the Financial Definitions and clauses
20.1.10 (Financial statements of the Obligors correct and complete),
21.1.6 (Provision of further information), and 21.3 (Financial
undertakings) only, a subsidiary undertaking within the meaning of
section 258 Companies Act 1985;

	 	 	“TARGET” means Trans-European Automated Real-time Gross Settlement Express
Transfer payment system;
	 
	 	 	“TARGET Day” means any day on which TARGET is open for the settlement of
payments in euro;
	 
	 	 	“Tax” or “Taxes” includes all present and future taxes, levies, imposts,
duties, fees or charges of whatever nature together with interest thereon
and penalties in respect thereof and “Taxation” shall be construed
accordingly;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Term” means the period for which the Lenders are under a liability under
a Letter of Credit;
	 
	 	 	“Termination Date” means the date falling five years after the date of
this Agreement;
	 
	 	 	“Testing Accounting Principles” means the Original Accounting Principles
as may be amended from time to time in accordance with clause 21.5
(Testing Accounting Principles);
	 
	 	 	“Total Commitments” means the aggregate of the Commitments, being
£600,000,000 at the date of this Agreement;
	 
	 	 	“Total Debt” means at any time, the aggregate outstanding principal or
capital amount of Indebtedness of the Group together with:

	 	(a)	 	the nominal amount of any issued and paid up share capital (other
than equity share capital) of any Subsidiary not beneficially owned by
any other Group Member;
	 
	 	(b)	 	the nominal amount of any preference share capital in any Group
Member not owned by any other Group Member;
	 
	 	(c)	 	Indebtedness secured by any Encumbrance over all or any part of
the undertaking, property, assets, rights or revenues of any Group
Member irrespective of whether or not such Indebtedness is supported
by a personal covenant on the part of any other Group Member;
	 
	 	(d)	 	The aggregate net liabilities (if any) of the Group in respect
of Hedging Arrangements, the amount of such liabilities being
calculated as at any relevant date on the basis of the aggregate net
cost to the Group of entering into new Hedging Arrangements with such
of the Reference Banks as the Borrower may nominate from time to time
or, in default of such nomination, with the Agent, which are both
equal and opposite to those Hedging Arrangements to which the Group
is (or members of it are) party on any relevant date, and which would
have the economic effect of closing out the Group’s aggregate current
position as at such date under such existing Hedging Arrangements;
and

16

 

	 	(e)	 	obligations under guarantees in respect of the obligations of
any other person which, if such person were a Group Member, would
fall within (a) to (d) above;

	 	 	PROVIDED THAT

	 	(A)	 	moneys owing by the Borrower to a Subsidiary of the Borrower or
by a Subsidiary of the Borrower to the Borrower or to another
Subsidiary of the Borrower shall not be taken into account;
	 
	 	(B)	 	no liability shall be taken into account more than once in such
computation;
	 
	 	(C)	 	any amount (other than an amount outstanding under this
Agreement) expressed in or calculated by reference to a currency
other than Sterling shall be converted into Sterling by reference to
the Agent’s Spot Rate of Exchange ruling on the date on which any
relevant calculation falls to be made;
	 
	 	(D)	 	the amount of all Utilisations outstanding under this Agreement
shall be deemed to be the Sterling Amount thereof;
	 
	 	(E)	 	the principal amount of Total Debt deemed to be outstanding in
relation to Finance Leases or hire purchase agreements shall be
calculated in accordance with the relevant provisions of the
Statement of Standard Accounting Practice 21 as amended or as
substituted by any generally accepted accounting principles in the
United Kingdom from time to time; and
	 
	 	(F)	 	Non-Recourse Liabilities of a Special Purpose Subsidiary shall
not be taken into account;

	 	 	“Treaty” means the Treaty establishing the European Economic Community,
being the Treaty of Rome of 25th March, 1957, as amended by the Single
European Act 1986 and the Maastricht Treaty (which was signed on 7th
February, 1992 and came into force on 1st November, 1993), as amended,
varied or supplemented from time to time;
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set
out in Schedule 5 (Form of Transfer Certificate);
	 
	 	 	“Transfer Date” means, in relation to a transfer, the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer
Certificate; and
	 
	 	(b)	 	the date on which the Agent executes the Transfer Certificate;

	 	 	“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under
the Finance Documents;
	 
	 	 	“Utilisation” means a utilisation of the Facility by way of Loan or Letter
of Credit;
	 
	 	 	“Utilisation Date” means the date on which a Utilisation is made;
	 
	 	 	“Utilisation Request” means (a), in the case of a Utilisation by way of
Loan, a notice substantially in the form set out in Part I of Schedule 3
(Requests) and (b), in the case of a Utilisation by way of a Letter of
Credit, a notice substantially in the form set out in Part II of Schedule
3 (Requests); and
	 
	 	 	“VAT” means value added tax as provided for in the Value Added Tax Act
1994 and any other tax of a similar nature.
	 
	   2	 	Construction
	 
	  2.1	 	 Construction

17

 

	2.1.1	 	Unless the contrary indication appears, any reference in this
Agreement to the “Agent”, the “Mandated Lead Arrangers” (or “MLAs”), any
“Finance Party”, any “Lender”, any “Obligor” or any “Party” shall be
construed so as to include its successors in title, permitted assigns and
permitted transferees.
	 
	2.1.2	 	Any reference in this Agreement to:

	 	(a)	 	“assets” includes present and future properties, revenues
and rights of every description;
	 
	 	(b)	 	the “European interbank market” means the interbank market
for euro operating in Participating Member States;
	 
	 	(c)	 	a “Finance Document” or any other agreement or instrument
is a reference to that Finance Document or other agreement or
instrument as from time to time amended, reinstated, supplemented
(including by any increase in amounts thereunder or any change to
the parties thereto) or novated in accordance with its terms;
	 
	 	(d)	 	a “person” includes any person, firm, company, corporation,
government, state or agency of a state or any association, trust or
partnership (whether or not having separate legal personality) or
two or more of the foregoing;
	 
	 	(e)	 	a “regulation” includes any regulation, rule, official
directive, request or guideline (whether or not having the force of
law) of any governmental, intergovernmental or supranational body,
agency, department or regulatory authority or organisation;
	 
	 	(f)	 	a provision of law is a reference to that provision as
amended or re-enacted;
	 
	 	(g)	 	unless a contrary indication appears, a time of day is a
reference to London time;
	 
	 	(h)	 	a “guarantee” includes an indemnity or other assurance
against financial loss including, without limitation, an obligation
to purchase assets or services as a consequence of a default by any
other person to pay any indebtedness and “guaranteed” shall be
construed accordingly;
	 
	 	(i)	 	the “equivalent” of an amount specified in a particular
currency (the “specified currency amount”) shall be construed as a
reference to the amount of the other relevant currency which would
be required to purchase the specified currency amount in the London
foreign exchange market at the Agent’s Spot Rate of Exchange on the
day on which the calculation falls to be made and for spot
delivery, as conclusively determined by the Agent;
	 
	 	(j)	 	the “agreed form” means, in relation to any document, the

form of such document as shall be agreed between the Borrower and
the Agent for and on behalf of all of the Finance Parties;
	 
	 	(k)	 	“discharge” includes, in respect of contingent liabilities,
(i) an obligation to use best endeavours to procure the release of
the relevant Finance Parties from any liability in respect of such
contingent liabilities which may be effected by (A) providing cash
collateral in accordance with (ii) below, (B) permanently reducing
the amount that may be demanded or (C) cancelling the relevant
instrument under which the liabilities arise by returning the
original of such instrument to the relevant person liable together
with confirmation (in form and substance satisfactory to the
relevant person liable) from the beneficiary that the relevant
person liable has no further liability under that instrument; and
(ii) to the extent required by the relevant person liable (by
notice through the Agent), an obligation to pay to the relevant
person liable for the credit of a Cash Collateral Account by way of
cash collateral an amount as at the date of such notice which is
equal to the amount of the relevant contingent liabilities to be
discharged, whereupon such amount shall become immediately or in
accordance with such notice due and payable. Amounts so credited
to a Cash Collateral Account (and interest

18

 

	 	 	 	thereon) shall be applied in paying the amount of such contingent
liabilities as they fall due on maturity or other crystallisation
(and “discharged” should be construed accordingly);
	 
	 	(l)	 	(i) the “winding up”, “dissolution”, or “administration” of
a person or (ii) to a “receiver” or “administrative receiver” in
the context of insolvency proceedings or security enforcement
actions in respect of a person shall be construed so as to include
any equivalent or analogous proceedings or any equivalent and
analogous person or appointee (respectively) under the law of the
jurisdiction in which such person is established or incorporated or
any jurisdiction in which such person carries on business including
(in respect of proceedings) the seeking or occurrence of
liquidation, winding-up, reorganisation, dissolution,
administration, arrangement, adjustment, protection or relief of
debtors;
	 
	 	(m)	 	an amount borrowed includes any amount utilised by way of
Letter of Credit;
	 
	 	(n)	 	a Utilisation made, or to be made, to a Borrower includes a
Letter of Credit issued on its behalf;
	 
	 	(o)	 	a Lender funding its participation in a Utilisation
includes a Lender participating in a Letter of Credit;
	 
	 	(p)	 	amounts outstanding under this Agreement include amounts
outstanding under any Letter of Credit;
	 
	 	(q)	 	a Letter of Credit is “repaid” or “prepaid” in whole or in
part (as applicable) if:

	 	(i)	 	the Borrower provides cash cover for such Letter of
Credit;
	 
	 	(ii)	 	the maximum amount payable under such Letter of
Credit is reduced in accordance with its terms; or
	 
	 	(iii)	 	the Agent is satisfied that the Lenders have no
further liability under such Letter of Credit,

	 	and the amount by which a Letter of Credit is repaid or prepaid
pursuant to (i) and (ii) above is the amount of the relevant cash
cover or reduction;
	 

	 	(r)	 	“cash cover” is provided for a Letter of Credit if the
Borrower pays an amount in the currency of the Letter of Credit to
an interest-bearing account with the Agent in London in the name of
the Borrower and the following conditions are met:
	 

	 	(i)	 	until no amount is or may be outstanding under that
Letter of Credit, withdrawals from the account may only be made
to pay a Finance Party amounts due and payable to it under that
Letter of Credit; and
	 
	 	(ii)	 	the Borrower has executed a security document over
that account, in form and substance satisfactory to the Agent,
creating a first ranking security interest over that account in
favour of the Lenders.
	 

	2.1.3	 	Section, clause and Schedule headings are for ease of reference only.
	 
	2.1.4	 	Unless a contrary indication appears, a term used in any other Finance
Document or in any notice given under or in connection with any Finance
Document has the same meaning in that Finance Document or notice as in
this Agreement.
	 
	2.1.5	 	A Default (other than an Event of Default) is “continuing” if it has
not been remedied or waived and an Event of Default is “continuing” if it
has not been waived.

19

 

	2.1.6	 	Any provision in a definition that purports to be operative shall take
effect as an operative provision of this Agreement notwithstanding that
such provision is contained in a definition.
	 
	2.1.7	 	Unless expressly stated to the contrary, in the event of any
inconsistency between the terms of this Agreement and any other Finance
Document, the terms of this Agreement shall prevail.
	 
	2.1.8	 	Each reference to “Barclays Capital” shall be to the investment
banking division of Barclays Bank PLC.
	 

	 2.2	 	Granting rights under the Contracts (Rights of Third Parties) Act 1999
	 

	2.2.1	 	Except as provided in a Finance Document, the terms of a Finance
Document may be enforced only by a party to it and the operation of the
Contracts (Rights of Third Parties) Act 1999 is excluded.
	 
	2.2.2	 	Subject to clause 33 (Remedies and waivers), the Parties to a Finance
Document do not require the consent of any third party to rescind or vary
any Finance Document at any time.

20

 

SECTION 2

THE FACILITIES

	   3	 	 The Facilities
	 
	  3.1	 	 The Facilities
	 

	3.1.1	 	 Subject to the terms of this Agreement, the Lenders make available to
the Borrower a multicurrency revolving loan facility in an aggregate
amount equal to the Total Commitments, to be utilised by way of cash
advances and/or, subject always to the LC Limit, Letters of Credit.
	 
	3.1.2	 	The Borrower shall ensure that at no time shall:

	 	(a)	 	the aggregate Base Currency Amount of the Utilisations
exceed the Total Commitments; and/or
	 
	 	(b)	 	the aggregate Base Currency Amount of the LC Liabilities
exceed the Base Currency Amount of the LC Limit.

	  3.2	 	Finance Parties’ rights and obligations
	 

	3.2.1	 	The obligations of each Finance Party under this Agreement are
several. Failure by a Finance Party to perform its obligations under the
Finance Documents does not affect the obligations of any other Party
under the Finance Documents. No Finance Party is responsible for the
obligations of any other Finance Party under this Agreement.
	 
	3.2.2	 	The rights of each Finance Party under or in connection with the
Finance Documents are separate and independent rights and any debt
arising under the Finance Documents to a Finance Party from an Obligor
shall be a separate and independent debt.
	 
	3.2.3	 	A Finance Party may, except as otherwise stated in the Finance
Documents, separately enforce its rights under the Finance Documents.
	 

	   4	 	Purpose
	 
	  4.1	 	Purpose
	 
	 	 	The Borrower shall apply all amounts utilised by it under the Facility
towards the purposes specified in clause 1.1 (Purpose).
	 
	  4.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any
amount borrowed pursuant to this Agreement.
	 
	   5	 	Conditions of Utilisation
	 
	  5.1	 	Initial conditions precedent
	 
	 	 	No Borrower may deliver a Utilisation Request unless the Agent has
received all of the documents and other evidence listed in Part I of
Schedule 2 (Conditions precedent) in form and substance satisfactory to
the Agent. The Agent shall notify the Borrower and the Lenders promptly
upon being so satisfied.
	 
	  5.2	 	 Further conditions precedent
	 
	 	 	The Lenders will only be obliged to comply with clause 6.4 (Lenders’
participation) if on the date of the Utilisation Request and on the
proposed Utilisation Date:

21

 

	 	(a)	 	in the case of a Rollover Loan, no Event of Default is
continuing or would result from the proposed Loan and, in the case
of any other Utilisation, no Default is continuing or would result
from the proposed Utilisation; and
	 
	 	(b)	 	the Repeating Representations to be made by each Obligor
are true in all material respects.
	 

	  5.3	 	Conditions relating to Optional Currencies
	 
	5.3.1	 	A currency will constitute an Optional Currency in relation to a
Utilisation if:
	 

	 	(a)	 	it is readily available in the amount required and freely
convertible into the Base Currency in the Relevant Interbank Market
on the Quotation Day and the Utilisation Date for that Utilisation;
and
	 
	 	(b)	 	it has been approved by the Agent (acting on the
instructions of all the Lenders) on or prior to receipt by the
Agent of the relevant Utilisation Request.

	5.3.2	 	If the Agent has received a written request from the Borrower for a
currency to be approved under clause 5.3.1(b) above, the Agent will
confirm to the Borrower by the Specified Time:
	 

	 	(a)	 	whether or not the Lenders have granted their approval; and
	 
	 	(b)	 	if approval has been granted, the minimum amount (and, if
required, integral multiples) for any subsequent Utilisation in
that currency.
	 

	  5.4	 	Maximum number of Utilisations
	 

	5.4.1	 	The Borrower may not deliver a Utilisation Request if, as a result of
the proposed Utilisation, more than 15 Utilisations would be outstanding.
	 
	5.4.2	 	Any Utilisation made by a single Lender under clause 7.2
(Unavailability of a currency) shall not be taken into account in this
clause 5.4.
	 
	  5.5	 	Waiver of Conditions Precedent
	 
	 	 	The conditions in this clause 5 are inserted solely for the benefit of the
Lenders and may be waived on their behalf in whole or in part and with or
without conditions by the Agent acting on the instructions of the Majority
Lenders.

22

 

SECTION 3

UTILISATION

	   6	 	 Utilisation
	 
	  6.1	 	 Delivery of a Utilisation Request
	 
	 	 	The Borrower may utilise the Facility by delivery to the Agent of a duly
completed Utilisation Request not later than the Specified Time.
	 
	  6.2	 	 Completion of a Utilisation Request
	 

	6.2.1	 	Each Utilisation Request is irrevocable and will not be regarded as
having been duly completed unless:

	 	(a)	 	in the case of a Loan:

	 	 	 	 	 
	 	 	(i)	 	the proposed Utilisation Date is a Banking Day
within the Availability Period;
	 	 	 	 	 
	 	 	
(ii)
	 	the currency and amount of the Utilisation comply
with clause 6.3 (Currency and amount); and
	 	 	 	 	 
	 	 	
(iii)
	 	the proposed Interest Period complies with clause
11 (Interest Periods); and

	(b)	 	in the case of a Letter of Credit;

	 	(i)	 	it specifies that it is for a Letter of Credit;
	 
	 	(ii)	 	the proposed Utilisation Date is a Banking Day
within the Availability Period;
	 
	 	(iii)	 	the currency and amount of the Letter of Credit
comply with clause 6.3 (Currency and amount);
	 
	 	(iv)	 	an agreed form Letter of Credit is attached;
	 
	 	(v)	 	the Utilisation Request is accompanied by a copy of
the form of the documentation or other instrument evidencing
the obligation of the Borrower which will be the subject of the
Letter of Credit and such documentation or other instrument is
reasonably acceptable to the Agent;
	 
	 	(vi)	 	there is a maximum limit to the stated liability of
the Lenders under the Letter of Credit and such Letter of
Credit has a specified Expiry Date falling not later than the
Termination Date;
	 
	 	(vii)	 	the Base Currency Amount of the Letter of Credit
is a minimum of £2,500,000 or the balance of the unutilised LC
Limit, or such other lesser amount as the Agent may agree;
	 
	 	(viii)	 	the identity of the beneficiary of the Letter of Credit has
been approved by the Agent, acting reasonably and in accordance
with the instructions of the Majority Lenders;
	 
	 	(ix)	 	the delivery instructions for the Letter of Credit
are specified; and
	 
	 	(x)	 	the terms of the Letter of Credit contain a clear
procedure for the making of claims reasonably satisfactory to
the Agent.

	6.2.2	 	No more than one currency may be requested in any single Utilisation
Request, and a Utilisation by way of Letter of Credit must be requested
in a separate Utilisation Request.

23

 

	 	 	The Borrower may, subject to the other terms of this Agreement, deliver
more than one Utilisation Request on any one day.
	 

	  6.3	 	Currency and amount
	 

	6.3.1	 	The currency specified in a Utilisation Request must be the Base
Currency or an Optional Currency.
	 
	6.3.2	 	The amount of the proposed Utilisation must be an amount whose Base
Currency Amount is not more than the Available Facility (and, if such
Utilisation is to be made by way of Letter of Credit, not more than the
available LC Limit in any event) and which is a minimum of £5,000,000 (or
its equivalent) in the case of a Utilisation by way of Loan, or a minimum
of £2,500,000 (or its equivalent) in the case of a Utilisation by way of
Letter of Credit or, if less, the Available Facility (or, in the case of
a Utilisation by way of Letter of Credit, the LC Limit).
	 

	  6.4	 	 Lenders’ participation
	 

	6.4.1	 	 If the conditions set out in this Agreement have been met, on the
Utilisation Date:

	 	(a)	 	each Lender shall make its participation in each Loan
available through its Facility Office; and/or, as applicable
	 
	 	(b)	 	the Agent shall execute each Letter of Credit for itself as
a Lender, and as agent for and on behalf of each other Lender, and
shall deliver such Letter of Credit to the stated beneficiary.
Each Lender irrevocably authorises the Agent to execute each Letter
of Credit which is to be issued in accordance with this Agreement
on its behalf without further consent or consultation.

	6.4.2	 	 The amount of each Lender’s participation in each Utilisation will be
equal to the proportion borne by its Available Commitment to the
Available Facility immediately prior to making the Utilisation.
	 
	6.4.3	 	 The Agent shall notify each Lender of the amount, currency and the
Base Currency Amount of each requested Utilisation at the Specified Time.
	 

	 6.5	 	 Letters of Credit
	 

	6.5.1	 	Immediately payable
	 
	 	 	If a Letter of Credit or any amount outstanding under a Letter of Credit
is expressed to be immediately payable, the Borrower shall repay or
prepay that amount immediately.
	 
	6.5.2	 	Assignments and transfers
	 
	 	 	If the conditions and procedure for transfer specified in clause 23
(Changes to the Lenders) are satisfied, and to the extent that an
Existing Lender seeks to transfer any rights or obligations relating to
a Letter of Credit (an “Existing LC”) to a New Lender (any such transfer
being a “LC Transfer”), then, subject to the agreement of the relevant
beneficiary, on the Transfer Date:

	 	(a)	 	the Agent shall issue a further Letter of Credit (the “New
LC”) on the terms of the Existing LC, but amended to reflect the
revised Commitment of each Lender resulting from the LC Transfer;
and
	 
	 	(b)	 	simultaneously with the delivery of the New LC to the
relevant beneficiary, the Existing LC shall be surrendered to the
Agent and cancelled in full.

24

 

	6.5.3	 	Claims under a Letter of Credit

	 	(a)	 	The Borrower irrevocably and unconditionally authorises
each Lender to pay any claim made or purported to be made under a
Letter of Credit and which appears on its face to be in order (a
“claim”).
	 
	 	(b)	 	The Borrower shall immediately on demand pay to the Agent
for the Lenders an amount equal to the amount of, and in the same
currency as, any claim.
	 
	 	(c)	 	The Borrower acknowledges that each Lender:
	 

	 	(i)	 	is not obliged to carry out any investigation or
seek any confirmation from any other person before paying a
claim; and
	 
	 	(ii)	 	deals in documents only and will not be concerned
with the legality of a claim or any underlying transaction or
any available set-off, counterclaim or other defence of any
person.
	 

	 	(d)	 	The obligations of the Borrower under this clause 6.5.3
(Claims under a Letter of Credit) will not be affected by:
	 

	 	(i)	 	the sufficiency, accuracy or genuineness of any
claim or any other document; or
	 
	 	(ii)	 	any incapacity of, or limitation on the powers of,
any person signing a claim or other document.
	 

	 	(e)	 	Without prejudice to sub-paragraph (a) of this clause 6.5.3
(Claims under a Letter of Credit), the Agent shall use reasonable
efforts to notify the Borrower before the Lenders pay any claim.

	6.5.4	 	Indemnities

	 	(a)	 	The Borrower shall immediately on demand indemnify each
Lender against any cost, loss or liability whatsoever incurred by
such Lender (otherwise than by reason of such Lender’s gross
negligence or wilful misconduct) in carrying out its function under
any Letter of Credit, whether pursuant to clause 6.5.3(a) (Claims
under a Letter of Credit) or otherwise.
	 
	 	(b)	 	The Borrower shall immediately on demand indemnify the
Agent against any cost, loss or liability whatsoever incurred by
the Agent (otherwise than by reason of the Agent’s gross negligence
or wilful misconduct) in carrying out its function under any Letter
of Credit.
	 
	 	(c)	 	Each Lender shall (according to its Relevant Proportion)
immediately on demand indemnify the Agent against any cost, loss or
liability incurred by the Agent (otherwise than by reason of the
Agent’s gross negligence or wilful misconduct) in carrying out its
function under any Letter of Credit (unless the Agent has been
reimbursed by an Obligor pursuant to a Finance Document).
	 
	 	(d)	 	The Borrower shall immediately on demand reimburse any
Lender for any payment it makes to the Agent under clause 6.5.4(c)
(Indemnities) unless the Borrower has already indemnified (i) the
Agent in full in respect of such payment under clause 6.5.4(c)
(Indemnities), (in which instance the Agent shall promptly
reimburse each Lender to the extent of any payment made by such
Lender to the Agent under clause 6.5.4(c) (Indemnities)), or (ii)
such Lender in full in respect of such payment under clause
6.5.4(a).
	 
	 	(e)	 	The obligations of each Lender under this clause 6.5.4
(Indemnities) are continuing obligations and will extend to the
ultimate balance of sums payable by that Lender in

25

 

	 	 	 	respect of any Letter of Credit, regardless of any intermediate
payment or discharge in whole or in part.
	 
	 	(f)	 	The obligations of any Lender under this clause 6.5.4
(Indemnities) will not be affected by any act, omission, matter or
thing which, but for this clause 6.5.4 (Indemnities), would reduce,
release or prejudice any of its obligations under this clause 6.5.4
(Indemnities) (without limitation and whether or not known to it or
any other person) including:
	 

	 	(i)	 	any time, waiver or consent granted to, or
composition with, any Obligor, any beneficiary under a Letter
of Credit or other person;
	 
	 	(ii)	 	the release of any Obligor or any other person
under the terms of any composition or arrangement with any
creditor or any member of the Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange,
renewal or release of, or refusal or neglect to perfect, take
up or enforce, any rights against, or security over assets of,
any Obligor, any beneficiary under a Letter of Credit or other
person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or
any failure to realise the full value of any security;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal
personality of or dissolution or change in the members or
status of an Obligor, any beneficiary under a Letter of Credit
or any other person;
	 
	 	(v)	 	any amendment (however fundamental) or replacement
of a Finance Document, any Letter of Credit or any other
document;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of
any obligation of any person under any Finance Document, any
Letter of Credit or any other document; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

	6.5.5	 	Rights of contribution
	 
	 	 	No Obligor will be entitled to any right of contribution or indemnity
from any Finance Party in respect of any payment it may make under this
Clause 6.5 (Letters of Credit).
	 
	6.5.6	 	Additional Security
	 
	 	 	The obligations of the Borrower under clause 6.5.4 (Indemnities) shall
be in addition to, and shall not be in any way prejudiced by, any
collateral or other security now or hereafter held by any Finance Party
as security or any lien to which that Finance Party may be entitled.
	 
	6.5.7	 	Preservation of Rights
	 
	 	 	No invalidity or unenforceability of all or any part of clause 6.5.4
(Indemnities) shall affect any rights of indemnity or otherwise which
any Finance Party would or may have in the absence of, or in addition
to, clause 6.5.4 (Indemnities).
	 
	6.5.8	 	Renewal of a Letter of Credit

	 	(a)	 	The Borrower may request any Letter of Credit issued on its
behalf be renewed by delivery to the Agent of a Renewal Request by
the Specified Time.
	 
	 	(b)	 	The Finance parties shall treat any Renewal Request in the
same way as a Utilisation Request for a Letter of Credit except
that the conditions set out in sub-paragraphs (b)(iv) and (b)(viii)
of clause 6.2.1 (Completion of a Utilisation Request) shall not
apply.

26

 

	 	(c)	 	The terms of each renewed Letter of Credit shall be the
same as those of the relevant Letter of Credit immediately prior to
its renewal, except that:
	 

	 	(i)	 	its amount may be less than the amount of the
Letter of Credit immediately prior to its renewal; and
	 
	 	(ii)	 	its Term shall start on the date which was the
Expiry Date of the Letter of Credit immediately prior to its
renewal, and shall end on the proposed maturity date specified
in the Renewal Request.
	 

	 	(d)	 	If the conditions set out in this Agreement have been met,
the Agent shall amend and re-issue any Letter of Credit pursuant to
a Renewal Request.

	6.5.9	 	Revaluation of Letters of Credit

	 	(a)	 	If any Letter of Credit is denominated in an Optional
Currency, the Agent shall at six monthly intervals after the date
upon which the Letter of Credit is first issued recalculate the
Base Currency Amount of that Letter of Credit by notionally
converting into the Base Currency the outstanding amount of that
Letter of Credit on the basis of the Agent’s Spot Rate of Exchange
on the date of calculation.
	 
	 	(b)	 	The Borrower shall, if requested by the Agent within 5 days
of any calculation under paragraph (a) above, ensure that within
three Business Days of such request sufficient Utilisations are
prepaid to prevent the Base Currency Amount of the Utilisations
exceeding the Total Commitments (or the Base Currency Amount of the
LC Utilisations exceeding the LC Limit, as the case may be)
following any adjustment to a Base Currency Amount under paragraph
(a) above.

	6.5.10	 	Lender obligations several
	 
	 	 	The obligations of each Lender under any Letter of Credit are several.
Failure of any Lender to carry out its obligations under such Letter of
Credit shall not relieve any other Lender of its obligations under such
Letter of Credit. No Lender shall be responsible for the obligations of
any other Lender under any Letter of Credit.
	 

	   7	 	Optional Currencies
	 
	  7.1	 	 Selection of currency
	 
	 	 	The Borrower shall select the currency of a Utilisation (in the case of an
initial Utilisation) in a Utilisation Request. No more than five
currencies shall be permitted in respect of outstanding Utilisations at
any time.
	 
	  7.2	 	Unavailability of a currency
	 
	 	 	If before the Specified Time on any Quotation Day:

	 	(a)	 	the Agent has received notice from a Lender that the Optional
Currency requested is not readily available to it in the amount
required; or
	 
	 	(b)	 	a Lender notifies the Agent that compliance with its obligation
to participate in a Utilisation in the proposed Optional Currency
would contravene a law or regulation applicable to it,

	 	the Agent will give notice to the Borrower to that effect by the Specified
Time on that day. In this event, any Lender that gives notice pursuant to
this clause 7.2 will be required to participate in the Utilisation in the
Base Currency (in an amount equal to that Lender’s proportion of the Base
Currency Amount or, in respect of a Rollover Loan, an amount equal to that
Lender’s proportion of the Base Currency Amount of the maturing Loan that
is due to be

27

 

	 	 	repaid) and its participation will be treated as a separate Utilisation
denominated in the Base Currency during that Interest Period.
	 
	  7.3	 	 Agent’s calculations
	 

	7.3.1	 	Each Lender’s participation in a Utilisation will be determined in
accordance with clause 6.4.2 (Lenders’ participation).

28

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	   8	 	Repayment
	 
	 	 	The Borrower shall repay each Utilisation made by way of Loan in full on
the last day of its Interest Period, and each Utilisation made by way of
Letter of Credit in full on the last day of its Term. All outstanding
Utilisations shall be repaid in full on the Termination Date in any event.
	 
	   9	 	 Prepayment and cancellation
	 
	  9.1	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for a Lender to
perform any of its obligations as contemplated by this Agreement or to
fund its participation in any Loan or maintain its obligations in respect
of any Letter of Credit:

	 	(a)	 	that Lender shall promptly notify the Agent upon becoming aware
of that event;
	 
	 	(b)	 	upon the Agent notifying the Borrower, the Commitment of that
Lender will be immediately cancelled; and
	 
	 	(c)	 	the Borrower shall repay that Lender’s participation in the
Utilisations made to that Borrower on the last day of the Interest
Period for each Utilisation occurring after the Agent has notified
the Borrower or, if earlier, the date specified by the Lender in the
notice delivered to the Agent (being no earlier than the last day of
any applicable grace period permitted by law).

	  9.2	 	 Voluntary cancellation
	 
	 	 	The Borrower may, if it gives the Agent not less than 5 Banking Days’ (or
such shorter period as the Majority Lenders may agree) prior written
notice, cancel the whole or any part (being a minimum amount of
£5,000,000) of the Available Facility. Any cancellation under this clause
9.2 shall reduce the Commitments of the Lenders rateably under the
Facility.
	 
	  9.3	 	Voluntary Prepayment
	 
	 	 	The Borrower to which a Utilisation has been made may, if it gives the
Agent not less than three Banking Days’ (or such shorter period as the
Majority Lenders may agree) prior notice, prepay the whole or any part of
a Utilisation (but if in part, being an amount that reduces the Base
Currency Amount of the Utilisation by a minimum amount of £5,000,000 or
any larger sum which is an integral multiple of £1,000,000).
	 
	  9.4	 	Right of repayment and cancellation in relation to a single Lender
	 

	9.4.1	 	If:

	 	(a)	 	any sum payable to any Lender by an Obligor is required to
be increased under clause 14.2.3 (Tax gross-up); or
	 
	 	(b)	 	any Lender claims indemnification from the Borrower under
clause 14.3 (Tax indemnity) or clause 15.1 (Increased costs),

	 	the Borrower may, whilst the circumstance giving rise to the requirement
or indemnification continues, give the Agent notice of cancellation of
the Commitments of that Lender and its intention to procure the
repayment of that Lender’s participation in the Utilisations.

29

 

	9.4.2	 	On receipt of a notice referred to in clause 9.4.1, the Commitments of
that Lender shall immediately be reduced to zero.
	 
	9.4.3	 	 On the last day of each Interest Period which ends after the Borrower
has given notice under clause 9.4.1 (or, if earlier, the date specified
by the Borrower in that notice), the Borrower shall repay that Lender’s
participation in any relevant Utilisation.
	 

	  9.5	 	Change of Control
	 

	9.5.1	 	 Upon a Change of Control of the Borrower, each Lender shall give
written notice to the Agent and the Borrower either:

	 	(a)	 	requiring the Borrower to prepay all amounts outstanding to
that Lender under or pursuant to the Facility (a “Prepayment
Notice”); or
	 
	 	(b)	 	confirming its consent to such Change of Control (a “Confirmation
Notice”),

	 	 	in either case, on a date no later than that falling 30 days after
receipt by the Agent of notice of such Change of Control (the “Decision
Date”) (such notice to be sent to the Agent by the Borrower within 5
days of any Change of Control in any event).
	 
	 	 	A “Change of Control” shall occur if any person or group of persons
acting in concert (other than the Original Ultimate Shareholder, any
Subsidiary or the Holding Company of the Original Ultimate Shareholder,
or any other Subsidiary of such Holding Company) acquire direct or
indirect control of the Borrower;
	 
	 	 	“Control” has the meaning given to that term in section 840 of the
Income and Corporation Taxes Act 1988; and
	 
	 	 	“acting in concert” has the meaning given to that term in the City Code
on Takeovers and Mergers.
	 
	9.5.2	 	 The Agent shall promptly notify the Lenders of any Change of Control
to the extent that it is so notified in accordance with clause 9.5.1
above. Following such notification, each Lender may, in its absolute
discretion, deliver a Prepayment Notice or a Confirmation Notice but any
Lender which fails to deliver either such notice on or prior to the
Decision Date shall be deemed to have given a Confirmation Notice in any
event.
	 
	9.5.3	 	 On delivery of a Prepayment Notice, the Commitments of the relevant
Lender shall immediately be reduced to zero.
	 
	9.5.4	 	 On the last day of each Interest Period which ends after a Lender
delivers a Prepayment Notice in accordance with clause 9.5.1, the
Borrower shall repay that Lender’s participation in any relevant
Utilisation.
	 

	  9.6	 	 Restrictions
	 

	9.6.1	 	Any notice of cancellation or prepayment given by any Party under this
clause 9 (Prepayment and cancellation) shall be irrevocable and, unless a
contrary indication appears in this Agreement, shall specify the date or
dates upon which the relevant cancellation or prepayment is to be made
and the amount of that cancellation or prepayment.
	 
	9.6.2	 	Any prepayment under this Agreement shall be made together with
accrued interest on the amount prepaid and, subject to any Break Costs,
without premium or penalty.
	 
	9.6.3	 	Unless a contrary indication appears in this Agreement, any part of
the Facility which is prepaid voluntarily may be reborrowed in accordance
with the terms of this Agreement.

30

 

	9.6.4	 	 If, under clause 9 (Prepayment and cancellation) the Borrower elects
to prepay the whole or any part of a Loan, the Borrower can further elect
(by notice to the Agent no later than 10.00 a.m. on the date falling two
Banking Days prior to which the prepayment would otherwise be due) to
credit the amount to be prepaid to a Cash Collateral Account in the name
of the Borrower on the date on which such prepayment would, but for this
clause, be due to be made. Following any such election and provided the
required payment is made to the Cash Collateral Account, the obligation
to prepay the relevant Utilisation will not arise until the last day of
the then current Interest Period or Term relative to the Utilisation to
be repaid.
	 
	9.6.5	 	 The Borrower authorises the Agent on behalf of the Obligors to
withdraw monies from such Cash Collateral Account and apply such monies
upon the occurrence of an Event of Default in respect of which a notice
has been given pursuant to clause 22.2 (Acceleration), against any
amounts due and payable under the Finance Documents.
	 
	9.6.6	 	 Any prepayment of the Facility pursuant to clauses 9.1 (Illegality),
9.3 (Voluntary prepayment, 9.4 (Right of repayment and cancellation in
relation to a single Lender) or 9.5 (Change of Control) shall include the
discharge of LC Liabilities to the extent of the relevant Lender’s
Relevant Proportion of the amount of the LC Liabilities outstanding at
the relevant time.
	 
	9.6.7	 	 The Borrower shall not repay or prepay all or any part of the
Utilisations or cancel all or any part of the Commitments except at the
times and in the manner expressly provided for in this Agreement.
	 
	9.6.8	 	 No amount of the Total Commitments cancelled under this Agreement may
be subsequently reinstated.
	 
	9.6.9	 	 If the Agent receives a notice under this clause 9 (Prepayment and
cancellation) it shall promptly forward a copy of that notice to either
the Borrower or the affected Lender, as appropriate.

31

 

SECTION 5

COSTS OF UTILISATION

	   10	 	 Interest
	 
	  10.1	 	 Calculation of interest
	 
	 	 	The rate of interest on each Loan for each Interest Period is the
percentage rate per annum which is the aggregate of the applicable:

	 	(a)	 	Margin from time to time;
	 
	 	(b)	 	LIBOR or, in relation to any Loan in euro, EURIBOR; and
	 
	 	(c)	 	Mandatory Cost, if any.

	10.1.1	 	 Calculation of Margin
	 
	 	 	The Margin in relation to any Loan, and the Letter of Credit fee for the
purposes of clause 13.4.1 (Letter of Credit Fees), shall (subject to the
proviso below) be the rate set out in column (1) below which corresponds
to the ratio of Net Debt to EBITDA set out in column (2) below, EBITDA
being calculated as the aggregate EBITDA for the two most recently
preceding Half-Yearly Periods in respect of which a Compliance
Certificate has been delivered to the Agent in accordance with clause
21.1.5(c) (Delivery of reports) and determined from the most
recent such Compliance Certificate:

	 	 	 	 
	(1)	 	(2)	 
	Rate (per cent. per annum)	 	Net Debt: EBITDA	 
	1.125	 	
greater than or equal to 3.00:1
	0.90	 	
Less than 3.00:1 and greater than or equal to 2.00:1
	0.70	 	
Less than 2.00:1 and greater than or equal to 1.00:1
	0.60	 	
Less than 1.00:1

	 	 	provided that:

	 	(a)	 	prior to the date upon which the Agent receives a
Compliance Certificate relating to the Half-Yearly Period ending 30
June 2004, the Margin shall be 1.125 per cent. per annum in any
event;
	 
	 	(b)	 	the Margin shall not fall below 0.70 per cent. per annum
prior to the date falling three years after the date of this
Agreement in any event; and
	 
	 	(c)	 	if the Borrower has failed to deliver a Compliance
Certificate due under this Agreement within five days of its due
date, the Margin shall be 1.125 per cent. per annum until such time
as such Compliance Certificate is duly delivered in accordance with
clause 21.1.5 (Delivery of reports).

	 	 	For the avoidance of doubt, any change in Margin shall take effect
immediately following delivery of a Compliance Certificate to the Agent
in accordance with clause 21.1.5 (Delivery of reports).

32

 

	  10.2	 	 Payment of interest
	 
	 	 	The Borrower shall pay accrued interest on each Loan on the last day of
each Interest Period (and, if the Interest Period is longer than six
Months, on the dates falling at six monthly intervals after the first day
of the Interest Period).
	 
	  10.3	 	Default interest
	 
	 	 	 
	10.3.1	 	 If an Obligor fails to pay any amount payable by it under a Finance
Document on its due date, interest shall accrue on the overdue amount
from the due date up to the date of actual payment (both before and after
judgment) at a rate one per cent higher than the rate which would have
been payable if the overdue amount had, during the period of non-payment,
constituted a Utilisation in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Agent
(acting reasonably). Any interest accruing under this clause 10.3 shall
be immediately payable by the Obligor on demand by the
Agent.

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

	 
	 	 	 
	  10.4	 	 Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the Lenders and the Borrower of the
determination of a rate of interest under this Agreement.
	 
	   11	 	 Interest Periods
	 
	  11.1	 	 Selection of Interest Periods
	 
	11.1.1	 	The Borrower may select an Interest Period for a Loan in the
Utilisation Request for that Loan.

	 
	11.1.2	 	 Subject to this clause 11, the Borrower may select an Interest Period
of 1, 2, 3 or 6 Months or any other period agreed between the Borrower
and the Agent.

	 
	11.1.3	 	An Interest Period for a Loan shall not extend beyond the Termination Date.

	 
	11.1.4	 	Each Loan shall have one Interest Period only.

	 
	  11.2	 	 Non-Banking Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Banking
Day, that Interest Period will instead end on the next Banking Day in that
calendar month (if there is one) or the preceding Banking Day (if there is
not).
	 
	   12	 	 Changes to the calculation of interest
	 
	  12.1	 	 Absence of quotations
	 
	 	 	Subject to clause 12.2 (Market disruption), if LIBOR or, if applicable,
EURIBOR is to be determined by reference to the Reference Banks but a
Reference Bank does not supply a quotation by the Specified Time on the
Quotation Day, the applicable LIBOR or EURIBOR shall be determined on the
basis of the quotations of the remaining Reference Banks.
	 
	  12.2	 	 Market disruption
	 
	12.2.1	 	 If a Market Disruption Event occurs in relation to a Loan for any
Interest Period, then the rate of interest on each Lender’s share of that
Loan for the Interest Period shall be the rate per annum which is the sum
of:

33

 

	 	(a)	 	the applicable Margin;
	 
	 	(b)	 	the rate notified to the Agent by that Lender as soon as
practicable and in any event before interest is due to be paid in
respect of that Interest Period, to be that which expresses as a
percentage rate per annum the cost to that Lender of funding its
participation in that Loan from whatever source it may reasonably
select; and
	 
	 	(c)	 	the Mandatory Cost, if any, applicable to that Lender’s
participation in the Loan.

	12.2.2	 	 In this Agreement “Market Disruption Event” means:

	 	(a)	 	at or about noon on the Quotation Day for the relevant
Interest Period the Screen Rate is not available and none or only
one of the Reference Banks supplies a rate to the Agent to
determine LIBOR or, if applicable, EURIBOR for the relevant
currency and period; or
	 
	 	(b)	 	before close of business in London on the Quotation Day for
the relevant Interest Period, the Agent receives notifications from
a Lender or Lenders (whose participations in a Loan exceed 33 1/3
per cent. of that Loan) that the cost to it of obtaining matching
deposits in the Relevant Interbank Market would be in excess of
LIBOR or, if applicable, EURIBOR.

	  12.3	 	 Alternative basis of interest or funding
	 

	12.3.1	 	 If a Market Disruption Event occurs and the Agent or the Borrower so
requires, the Agent and the Borrower shall enter into negotiations (for a
period of not more than thirty days) with a view to agreeing a substitute
basis for determining the rate of interest.
	 
	12.3.2	 	 Any alternative basis agreed pursuant to clause 12.3.1 shall, with the
prior consent of all the Lenders and the Borrower, be binding on all
Parties.
	 

	  12.4	 	 Break Costs
	 

	12.4.1	 	 The Borrower shall, within three Banking Days of demand by a Finance
Party, pay to that Finance Party its Break Costs attributable to all or
any part of a Loan or Unpaid Sum being paid by that Borrower on a day
other than the last day of an Interest Period for that Loan or Unpaid
Sum.
	 
	12.4.2	 	 Each Lender shall, as soon as reasonably practicable after a demand by
the Agent, provide a certificate confirming the amount of its Break Costs
for any Interest Period in which they accrue.
	 

	   13	 	 Fees
	 
	  13.1	 	 Commitment fee
	 

	13.1.1	 	 The Borrower shall pay to the Agent (for the account of each Lender) a
fee in the Base Currency computed at the rate per annum of 45 per cent.
of the Margin applicable on the day of payment of such fee on that
Lender’s Available Commitment for the Availability Period.
	 
	13.1.2	 	 The accrued commitment fee is payable on the last day of each
successive period of three Months which ends during the Availability
Period, on the last day of the Availability Period and on the cancelled
amount of any relevant Lender’s Commitment at the time the cancellation
is effective.

34

 

	  13.2	 	 Arrangement fee
	 
	 	 	The Borrower shall pay to the Mandated Lead Arrangers an arrangement fee
in the amount and at the times agreed in a Fee Letter.
	 
	   13.3	 	 Agency fee
	 
	 	 	The Borrower shall pay to the Agent (for its own account) an agency fee in
the amount and at the times agreed in a Fee Letter.
	 
	  13.4	 	 Letter of Credit Fees
	 

	13.4.1	 	 The Borrower shall pay fees calculated on the aggregate daily Base
Currency Amount of the LC Liabilities, as determined by the Agent at an
annual rate equal to the applicable Margin, to the Agent for the account
of each Lender.
	 
	13.4.2	 	 The accrued Letter of Credit fees are payable in respect of each Letter
of Credit on the last day of each successive period of three months (or
such shorter period as shall end on the maturity date of such Letter or
Credit) starting on the date of issue of such Letter of Credit. Accrued
Letter of Credit fees are also payable on the cancelled amount of any
Lender’s Commitment at the time that such cancellation is effective if
that Commitment is cancelled in full and the Letters of Credit are
prepaid or repaid in full.

35

 

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	   14	 	Tax gross up and indemnities
	 
	  14.1	 	Definitions
	 

	14.1.1	 	 In this clause 14 (Tax gross-up and indemnities):
	 
	 	 	“Bank Lender” means a Lender:

	 	(a)	 	which is a bank (as defined for the purpose of section 349
of the Taxes Act) making an advance under a Finance Document; or
	 
	 	(b)	 	in respect of an advance made under a Finance Document by a
person that was a bank (as defined for the purposes of section 349
of the Taxes Act) at the time that such advance was made,

	 	 	and which is within the charge to United Kingdom corporation tax as
respects any payments of interest made in respect of that advance.
	 
	 	 	“Protected Party” means a Finance Party which is or will be, for or on
account of Tax, subject to any liability or required to make any payment
in relation to a sum received or receivable (or any sum deemed for the
purposes of Tax to be received or receivable) under a Finance Document.
	 
	 	 	“Qualifying Lender” means a Lender which is (on the date a payment falls
due):

	 	(a)	 	beneficially entitled to the interest payable to it in
respect of an advance under a Finance Document; and
	 
	 	(b)	 	a Bank Lender, a UK Lender or a Treaty Lender.

	 	 	“Tax Credit” means a credit against, relief or remission for, or
repayment of any Tax.
	 
	 	 	“Tax Deduction” means a deduction or withholding for or on account of
Tax from a payment under a Finance Document.
	 
	 	 	“Tax Payment” means an increased payment made by an Obligor to a Finance
Party under clause 14.2 (Tax gross-up) or a payment under clause 14.3
(Tax indemnity).
	 
	 	 	“Treaty Lender” means a Lender who, by virtue of a double taxation
agreement between the United Kingdom and the country of residence of
that Lender, is (subject only to a prior direction given to the Borrower

by the United Kingdom Inland Revenue following an application by that
Lender) eligible to receive payments from the Borrower under this
Agreement without any deduction in respect of Taxes and does not carry
on a business in the United Kingdom through a permanent establishment
with which such Lender’s participation in the Loan is effectively
connected.
	 
	 	 	“UK Lender” means a person who is:

	 	(a)	 	a company resident in the United Kingdom for tax purposes;
or
	 
	 	(b)	 	a partnership each of whose members is a company so
resident; or
	 
	 	(c)	 	a company not so resident in the United Kingdom for tax
purposes, but which carries on a trade in the United Kingdom
through a branch or agency which brings into

36

 

	 	 	 	account interest payable in respect of that advance in computing
its chargeable profits (within the meaning given by section 11(2)
of the Taxes Act).

	14.1.2	 	 In this clause 14 (Tax gross-up and indemnities) a reference to
“determines” or “determined” means a determination made in the absolute
discretion of the person making the determination.
	 

	  14.2	 	 Tax gross-up
	 

	14.2.1	 	Each Obligor shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law.
	 
	14.2.2	 	 The Borrower or a Lender shall promptly upon becoming aware that an
Obligor must make a Tax Deduction (or that there is any change in the
rate or the basis of a Tax Deduction) notify the Agent accordingly. If
the Agent receives such notification from a Lender it shall notify the
Borrower and that Obligor.
	 
	14.2.3	 	 If a Tax Deduction is required by law to be made by an Obligor the
amount of the payment due from that Obligor shall be increased, subject
to clause 14.2.4 below, to an amount which (after making any Tax
Deduction) leaves an amount equal to the payment which would have been
due if no Tax Deduction had been required.
	 
	14.2.4	 	 An Obligor is not required to make an increased payment to a Lender
under clause 14.2.3 above for a Tax Deduction in respect of tax imposed
by the United Kingdom from a payment of interest on a Loan, if on the
date on which the payment falls due:

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

	 	(i)	 	 the relevant Lender is a UK Lender, or would have
been a UK Lender were it not for any change after the date it
became a Lender under this Agreement in (or in the
interpretation, administration, or application of) any law or
double taxation agreement, or any published practice or
concession of any relevant taxing authority; and
	 

	 	(ii)	 	the Board of the Inland Revenue has given (and not
revoked) a direction under section 349C of the Taxes Act (as
that provision has effect on the date on which the relevant
Lender became a party to this Agreement) which relates to that
payment and that Obligor has notified that UK Lender of the
precise terms of that notice; or
	 

	 	(c)	 	the relevant Lender is a Treaty Lender and the Obligor
making the payment is able to demonstrate that the payment could
have been made to the Lender without the Tax Deduction had that
Lender complied with its obligations under clause 14.2.7 below.

	14.2.5	 	 If an Obligor is required to make a Tax Deduction, that Obligor shall
make that Tax Deduction and any payment required in connection with that
Tax Deduction within the time allowed and in the minimum amount required
by law.
	 
	14.2.6	 	 Within thirty days of making either a Tax Deduction or any payment
required in connection with that Tax Deduction, the Obligor making that
Tax Deduction shall deliver to the Agent for the Finance Party entitled
to the payment evidence reasonably satisfactory to that Finance Party
that the Tax Deduction has been made or (as applicable) any appropriate
payment paid to the relevant taxing authority.

37

 

	 	 	 
	14.2.7	 	
A Treaty Lender and each Obligor which makes a payment to which that
Treaty Lender is entitled shall co-operate in completing any procedural
formalities necessary for that Obligor to obtain authorisation to make
that payment without a Tax Deduction, provided that if a Treaty Lender is
also a New Lender (as such term is defined in clause 23.1 (Assignment and
transfers by the Lenders)) it shall be deemed, for the purposes of this
clause 14.2.7 and clause 14.2.4(c) above, to have failed to comply with
its obligations under this clause 14.2.7 if, following its assumption of
obligations pursuant to clause 23 (Changes to the Lenders) (the date of
such assumption being the “Accession Date”), it omits to file an
application for relief under any applicable double taxation agreement
with the relevant authorities in its country of residence, any such
application to be filed by the date falling 30 days before the date upon
which an interest payment next falls due or the Accession Date, whichever
the later.

	 	 	 
	14.3	 	
Tax indemnity

	 	 	 
	14.3.1	 	
The Borrower shall (within three Banking Days of demand by the Agent)
pay to a Protected Party an amount equal to the loss, liability or cost
which that Protected Party determines will be or has been (directly or
indirectly) suffered for or on account of Tax by that Protected Party in
respect of a Finance Document.
	 	 	 
	14.3.2	 	
Clause 14.3.1 above shall not apply:

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

	 	(i)	 	under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the
jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes; or
	 
	 	(ii)	 	under the law of the jurisdiction in which that
Finance Party’s Facility Office is located in respect of
amounts received or receivable in that jurisdiction,
	 
	 	if that Tax is imposed on or calculated by reference to the net
income received or receivable (but not any sum deemed to be received
or receivable) by that Finance Party; or

	 	(b)	 	with respect to any Tax assessed on the Agent, as a result
of the failure by a Lender to satisfy on the due date of a payment
of interest the condition set out in clause 25.15 (Lenders’ tax
status confirmation); or
	 
	 	(c)	 	to the extent that a loss, liability or cost:

	 	(i)	 	is compensated for by an increased payment under
clause 14.2 (Tax gross-up); or
	 
	 	(ii)	 	would have been compensated for by an increased
payment under clause 14.2 (Tax gross-up) but was not so
compensated solely because one of the exclusions in clause
14.2.4 applied.

	 	 	 
	14.3.3	 	
A Protected Party making, or intending to make a claim pursuant to
clause 14.3.1 above shall promptly notify the Agent of the event which
will give, or has given, rise to the claim, following which the Agent
shall notify the Borrower.
	 	 	 
	14.3.4	 	
A Protected Party shall, on receiving a payment from an Obligor under
this clause 14.3, notify the Agent.

	 	 	 
	14.4	 	
Tax Credit
	 	 	 
	 	 	
If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

38

 

	 	(a)	 	a Tax Credit is attributable either to an increased payment of
which that Tax Payment forms part, or to that Tax Payment; and
	 
	 	(b)	 	that Finance Party has obtained, utilised and retained that Tax
Credit,
	 
	 	the Finance Party shall pay an amount to the Obligor which that Finance
Party determines will leave it (after that payment) in the same after-Tax
position as it would have been in had the Tax Payment not been made by the
Obligor.

	 	 	 
	14.5	 	
Stamp taxes
	 	 	 
	 	 	
The Borrower shall pay and, within three Banking Days of demand, indemnify
each Finance Party against any cost, loss or liability that Finance Party
incurs in relation to all stamp duty, registration and other similar Taxes
payable in respect of any Finance Document.
	 	 	 
	14.6	 	
Value added tax

	 	 	 
	14.6.1	 	
All consideration payable under a Finance Document by any Party to a
Finance Party shall be deemed to be exclusive of any VAT. If VAT is
chargeable on any supply made by any Finance Party to any Party in
connection with a Finance Document that Party shall pay to the Finance
Party (in addition to and at the same time as paying that consideration)
an amount equal to the amount of the VAT.
	 	 	 
	14.6.2	 	
Where a Finance Document requires an Obligor to reimburse a Finance
Party for any costs or expenses, that Obligor shall also at the same time
pay and indemnify that Finance Party against all VAT incurred by that
Finance Party in respect of the costs or expenses save to the extent that
that Finance Party is entitled to repayment or credit in respect of the
VAT.

	 	 	 
	15	 	
Increased costs
	 	 	 
	15.1	 	
Increased costs

	 	 	 
	15.1.1	 	
Subject to clause 15.3 (Exceptions) the Borrower shall, within three
Banking Days of a demand by the Agent, pay for the account of a Finance
Party the amount of any Increased Costs incurred by that Finance Party or
any of its Affiliates as a result of (i) the introduction of or any
change in (or in the interpretation, administration or application of)
any law or regulation or (ii) compliance with any law or regulation made
after the date of this Agreement.
	 	 	 
	15.1.2	 	
In this Agreement “Increased Costs” means:

	 	(a)	 	a reduction in the rate of return from the Facility or on a
Finance Party’s (or its Affiliate’s) overall capital;
	 
	 	(b)	 	an additional or increased cost; or
	 
	 	(c)	 	a reduction of any amount due and payable under any Finance
Document,

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

	 	 	 
	15.2	 	
Increased cost claims

	 	 	 
	15.2.1	 	
A Finance Party intending to make a claim pursuant to clause 15.1
(Increased costs) shall notify the Agent of the event giving rise to the
claim, following which the Agent shall promptly notify the Borrower.

39

 

	 	 	 
	15.2.2	 	
Each Finance Party shall, as soon as practicable after a demand by the
Agent, provide a certificate confirming the amount of its Increased
Costs.

	 	 	 
	15.3	 	
Exceptions

	 	 	 
	15.3.1	 	
Clause 15.1 (Increased costs) does not apply to the extent any Increased Cost is:

	 	(a)	 	attributable to a Tax Deduction required by law to be made
by an Obligor;
	 
	 	(b)	 	compensated for by clause 14.3 (Tax indemnity) (or would
have been compensated for under clause 14.3 (Tax indemnity) but was
not so compensated solely because one of the exclusions in clause
14.3.2 (Tax indemnity) applied);
	 
	 	(c)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(d)	 	attributable to the wilful breach by the relevant Finance
Party or its Affiliates of any law or regulation.

	 	 	 
	15.3.2	 	
In this clause 15.3, a reference to a “Tax Deduction” has the same
meaning given to the term in clause 14.1 (Definitions).

	 	 	 
	16	 	
Other indemnities
	 	 	 
	16.1	 	
Currency indemnity

	 	 	 
	16.1.1	 	
If any sum due from an Obligor under the Finance Documents (a “Sum”),
or any order, judgment or award given or made in relation to a Sum, has
to be converted from the currency (the “First Currency”) in which that
Sum is payable into another currency (the “Second Currency”) for the
purpose of:

	 	(a)	 	making or filing a claim or proof against that Obligor;
	 
	 	(b)	 	obtaining or enforcing an order, judgment or award in
relation to any litigation or arbitration proceedings,
	 
	 	that Obligor shall as an independent obligation, within three Banking
Days of demand, indemnify each Finance Party to whom that Sum is due
against any cost, loss or liability arising out of or as a result of the
conversion including any discrepancy between (A) the rate of exchange
used to convert that Sum from the First Currency into the Second
Currency and (B) the rate or rates of exchange available to that person
at the time of its receipt of that Sum.

	 	 	 
	16.1.2	 	
Each Obligor waives any right it may have in any jurisdiction to pay
any amount under the Finance Documents in a currency or currency unit
other than that in which it is expressed to be payable.

	 	 	 
	16.2	 	
Other indemnities
	 	 	 
	 	 	
The Borrower shall (or shall procure that an Obligor will), within three
Banking Days of demand, indemnify each Lender against any cost, loss or
liability incurred by that Lender as a result of:

	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance
Document on its due date, including without limitation, any cost,
loss or liability arising as a result of clause 27 (Sharing among the
Lenders);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in a
Utilisation requested by the Borrower in a Utilisation Request but
not made by reason of the operation of any one or

40

 

	 	 	 	more of the provisions of this Agreement (other than by reason of
default or negligence by that Lender alone); or
	 
	 	(d)	 	a Utilisation (or part of a Utilisation) not being prepaid in
accordance with a notice of prepayment given by the Borrower.

	 	 	 
	16.3	 	
Indemnity to the Agent
	 	 	 
	 	 	
The Borrower shall promptly indemnify the Agent against any cost, loss or
liability incurred by the Agent (acting reasonably) as a result of:

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

	 	 	 
	17	 	
Mitigation by the Lenders
	 	 	 
	17.1	 	
Mitigation

	 	 	 
	17.1.1	 	
Each Finance Party shall, in consultation with the Borrower, take all
reasonable steps to mitigate any circumstances which arise and which
would result in any amount becoming payable under, or cancelled pursuant
to, any of clause 9.1 (Illegality), clause 14 (Tax gross-up and
indemnities) or clause 15 (Increased costs) or paragraph 3 of Schedule 4
(Mandatory Cost Formulae) including (but not limited to) transferring its
rights and obligations under the Finance Documents to another Affiliate
or Facility Office.
	 	 	 
	17.1.2	 	
Clause 17.1.1 above does not in any way limit the obligations of any
Obligor under the Finance Documents.

	 	 	 
	17.2	 	
Limitation of liability

	 	 	 
	17.2.1	 	
The Borrower shall indemnify each Finance Party for all costs and
expenses reasonably incurred by that Finance Party as a result of steps
taken by it under clause 17.1 (Mitigation).
	 	 	 
	17.2.2	 	
A Finance Party is not obliged to take any steps under clause 17.1
(Mitigation) if, in the opinion of that Finance Party (acting
reasonably), to do so might be prejudicial to it.

	 	 	 
	18	 	
Costs and expenses
	 	 	 
	18.1	 	
Transaction expenses
	 	 	 
	 	 	
The Borrower shall promptly on demand pay the Agent and the MLAs the
amount of all costs and expenses (including legal fees) reasonably
incurred by any of them in connection with the negotiation, preparation,
printing, execution and syndication of:

	 	(a)	 	this Agreement and any other documents referred to in this
Agreement; and
	 
	 	(b)	 	any other Finance Documents executed after the date of this
Agreement.

	 	 	 
	18.2	 	
Amendment costs
	 	 	 
	 	 	
If (a) an Obligor requests an amendment, waiver or consent or (b) an
amendment is required pursuant to clause 28.9 (Change of currency), the
Borrower shall, within three Banking Days of demand, reimburse the Agent
for the amount of all costs and expenses (including legal fees) reasonably
incurred by the Agent in responding to, evaluating, negotiating or
complying with that request or requirement.

41

 

	 	 	 
	18.3	 	
Enforcement costs
	 	 	 
	 	 	
The Borrower shall, within three Banking Days of demand, pay to each
Finance Party the amount of all costs and expenses (including legal fees)
incurred by that Finance Party in connection with the enforcement of, or
the preservation of any rights under, any Finance Document.

42

 

SECTION 7

GUARANTEE

	 	 	 
	19	 	
Guarantee and indemnity
	 	 	 
	19.1	 	
Covenant to pay
	 	 	 
	 	 	
Each Guarantor irrevocably and unconditionally jointly and severally
guarantees to pay to the Agent, for the account of the Finance Parties, on
demand by the Agent all moneys and discharge all obligations and
liabilities now or hereafter due, owing or incurred by the Borrower to the
Finance Parties (or any of them) under or pursuant to the Finance
Documents when the same become due for payment or discharge whether by
acceleration or otherwise and whether such moneys are denominated in
Sterling or in any Optional Currency.
	 	 	 
	19.2	 	
Guarantors as principal debtors; indemnity
	 	 	 
	 	 	
As a separate and independent stipulation, the Guarantors jointly and
severally agree that if any purported obligation or liability of the
Borrower which would have been the subject of this guarantee had it been
valid and enforceable is not or ceases to be valid or enforceable against
the Borrower on any ground whatsoever whether or not known to the Finance
Parties or any of them (including, without limitation, any irregular
exercise or absence of any corporate power or lack of authority of, or
breach of duty by, any person purporting to act on behalf of the Borrower
or any legal or other limitation, whether under the Limitation Acts or
otherwise or any disability or Incapacity or any change in the
constitution of the Borrower) the Guarantors shall nevertheless be jointly
and severally liable to the Finance Parties in respect of that purported
obligation or liability as if the same were fully valid and enforceable
and such Guarantor was the principal debtor in respect thereof. The
Guarantors hereby jointly and severally agree to keep the Finance Parties
fully indemnified on demand against all damages, losses, costs and
expenses arising from any failure of the Borrower to perform or discharge
any such purported obligation or liability.
	 	 	 
	19.3	 	
No security taken by Guarantors
	 	 	 
	 	 	
The Guarantors jointly and severally warrant that they have not taken or
received, and undertake that until all the Guaranteed Liabilities have
been paid or discharged in full, they will not take or receive, the
benefit of any security from the Borrower or any other person in respect
of their obligations under this guarantee.
	 	 	 
	19.4	 	
Interest
	 	 	 
	 	 	
Each Guarantor agrees to pay interest on each amount demanded of it under
this guarantee from the date of such demand until payment (as well after
as before judgment) at the rate specified in clause 10.3 (Default
interest). Such interest shall be compounded at the end of each period
determined for this purpose by the Agent in the event of it not being paid
when demanded but without prejudice to the Lenders’ right to require
payment of such interest.
	 	 	 
	19.5	 	
Continuing security and other matters
	 	 	 
	 	 	
This guarantee shall:

	 	 	 
	19.5.1	 	
secure the ultimate balance from time to time owing to the Finance
Parties by the Borrower and shall be a continuing security,
notwithstanding any settlement of account or other matter whatsoever;
	 	 	 
	19.5.2	 	
be in addition to any present or future Collateral Instrument, right or
remedy held by or available to the Lenders or any of them or each MLA or
the Agent; and

43

 

	 	 	 
	19.5.3	 	
not be in any way prejudiced or affected by the existence of any such
Collateral Instrument, rights or remedies or by the same becoming wholly
or in part void, voidable or unenforceable on any ground whatsoever or by
the Agent or the MLAs or the Lenders or any of them dealing with,
exchanging, varying or failing to perfect or enforce any of the same or
giving time for payment or indulgence or compounding with any other
person liable.

	 	 	 
	19.6	 	
New accounts
	 	 	 
	 	 	
If this guarantee ceases to be continuing for any reason whatsoever each
Bank may nevertheless continue any account of the Borrower or open one or
more new accounts and the liability of the Guarantors under this guarantee
shall not in any manner be reduced or affected by any subsequent
transactions or receipts or payments into or out of any such account.
	 	 	 
	19.7	 	
Liability unconditional
	 	 	 
	 	 	
The liability of each Guarantor shall not be affected nor shall this
guarantee be discharged or reduced by reason of:

	 	 	 
	19.7.1	 	
the Incapacity or any change in the name, style or constitution of any
Obligor or any other person liable; or
	 	 	 
	19.7.2	 	
any Finance Party granting any time, indulgence or concession to, or
compounding with, discharging, releasing or varying the liability of any
other Obligor or any other person liable or renewing, determining,
varying or increasing any accommodation, facility or transaction or
otherwise dealing with the same in any manner whatsoever or concurring
in, accepting or varying any compromise, arrangement or settlement or
omitting to claim or enforce payment from any other Obligor or any other
person liable; or
	 	 	 
	19.7.3	 	
any act or omission which would not have discharged or affected the
liability of such Guarantor had it been a principal debtor instead of a
guarantor or by anything done or omitted which but for this provision
might operate to exonerate such Guarantor.

	 	 	 
	19.8	 	
Collateral Instruments
	 	 	 
	 	 	
No Finance Party shall be obliged to make any claim or demand on the
Borrower or to resort to any Collateral Instrument or other means of
payment now or hereafter held by or available to them or it before
enforcing this guarantee and no action taken or omitted by any Finance
Party in connection with any such Collateral Instrument or other means of
payment shall discharge, reduce, prejudice or affect the liability of any
Guarantor under this guarantee nor shall any Finance Party be obliged to
apply any money or other property received or recovered in consequence of
any enforcement or realisation of any such Collateral Instrument or other
means of payment in reduction of the Guaranteed Liabilities.
	 	 	 
	19.9	 	
Waiver of Guarantors’ rights
	 	 	 
	 	 	
Until all the Guaranteed Liabilities have been paid, discharged or
satisfied in full (and notwithstanding payment of a dividend in any
liquidation or under any compromise or arrangement) each Guarantor agrees
that, without the prior written consent of the Agent, it will not:

	 	 	 
	19.9.1	 	
exercise its rights of subrogation, reimbursement and indemnity against
any other Obligor or any other person liable; or
	 	 	 
	19.9.2	 	
demand or accept repayment in whole or in part of any Indebtedness now
or hereafter due as a consequence of entering into this Agreement as a
Guarantor or making a payment under this Agreement as a Guarantor, due to
such Guarantor from any other Group Member or from any other person
liable or demand or accept any Collateral Instrument in respect of the
same or dispose of the same; or

44

 

	 	 	 
	19.9.3	 	
take any step to enforce any right either against any other Obligor
arising as a consequence of entering into this Agreement as a Guarantor
or making a payment under this Agreement as a Guarantor or against any
other person liable in respect of any Guaranteed Liabilities; or
	 	 	 
	19.9.4	 	
claim any set-off or counterclaim against any other Obligor or any
other person liable or claim or prove in competition with any Finance
Party in the liquidation of any other Obligor or any other person liable
or have the benefit of, or share in, any payment from or composition
with, any other Obligor or any other person liable or any other
Collateral Instrument now or hereafter held by any Finance Party for any
Guaranteed Liabilities or for the obligations or liabilities of any other
person liable but so that, if so directed by the Agent, it will prove for
the whole or any part of its claim in the liquidation of any other
Obligor on terms that the benefit of such proof and of all money received
by it in respect thereof shall be held on trust for the Finance Parties
and applied in or towards discharge of the Guaranteed Liabilities in
accordance with the order set out in clause 28.5.1 (Partial payments).

	 	 	 
	19.10	 	
Suspense accounts
	 	 	 
	 	 	
Any money received in connection with this guarantee (whether before or
after any Incapacity of any Obligor) may be placed to the credit of a
suspense account with a view to preserving the rights of the Finance
Parties to prove for the whole of their respective claims against any
Obligor or any other person liable or may be applied in or towards
satisfaction of the Guaranteed Liabilities in accordance with the order
set out in clause 28.5.1 (Partial payments) save where such money is
received pursuant to a demand by the Agent under clause 10.1 (Calculation
of interest) and is in an amount equal to the sum demanded, in which case
such money shall be applied in or towards satisfaction of the Guaranteed
Liabilities in accordance with the order set out in clause 28.5.1 (Partial
payments).
	 	 	 
	19.11	 	
Settlements conditional
	 	 	 
	 	 	
Any release, discharge or settlement between any Guarantor and the Finance
Parties shall be conditional upon no security, disposition or payment to
the Finance Parties by any Obligor or any other person liable being void,
set aside or ordered to be refunded pursuant to any enactment or law
relating to bankruptcy, liquidation, administration or insolvency or for
any other reason whatsoever and if such condition shall not be fulfilled
the Finance Parties shall be entitled to enforce this Guarantee
subsequently as if such release, discharge or settlement had not occurred
and any such payment had not been made.
	 	 	 
	19.12	 	
Guarantors to deliver up certain property
	 	 	 
	 	 	
If, contrary to clauses 19.3 (No Security taken by Guarantors) or 19.4
(Interest), any Guarantor takes or receives the benefit of any security or
receives or recovers any money or other property, such security, money or
other property shall be held on trust for the Finance Parties and shall be
delivered to the Agent on demand.
	 	 	 
	19.13	 	
Retention of this guarantee
	 	 	 
	 	 	
The Finance Parties shall be entitled to retain this guarantee after as
well as before the payment or discharge of all the Guaranteed Liabilities
for such period as the Agent may reasonably determine.
	 	 	 
	19.14	 	
Changes in constitution or reorganisations of Lenders
	 	 	 
	 	 	
For the avoidance of doubt and without prejudice to the provisions of
clause 23 (Changes to the Lenders), this guarantee shall remain binding on
the Guarantors notwithstanding any change in the constitution of the
Finance Parties or any of them or their or its absorption in, or
amalgamation with, or the acquisition of all or part of their or its
undertaking or assets by, any other person, or any reconstruction or
reorganisation of any kind, to the intent that this guarantee shall remain
valid and effective in all respects in favour of any successor in title of
the Lenders, the Mandated Lead Arrangers and the Agent, any Substitute and
any successor Agent appointed pursuant to clause 25.11 (Resignation of the
Agent) in the same manner as if

45

 

	 	 	 
	 	 	
such successor in title, Substitute or successor Agent had been named in
this guarantee as a party instead of, or in addition to, the relevant
Lender or the relevant MLA or the Agent, as the case may be.
	 	 	 
	19.15	 	
Other guarantors
	 	 	 
	 	 	
Each Guarantor agrees to be bound by this guarantee notwithstanding that
any other person intended to execute or to be bound by any other guarantee
or assurance under or pursuant to this Agreement may not do so or may not
be effectually bound and notwithstanding that such other guarantee or
assurance may be determined or be or become invalid or unenforceable
against any other person, whether or not the deficiency is known to the
Finance Parties or any of them.
	 	 	 
	19.16	 	
Interpretation
	 	 	 
	 	 	
References in this clause 19 to “this guarantee” shall be construed as
including references to each separate or independent stipulation or
agreement by the Guarantors contained in this clause 19 (Guarantee and
indemnity).
	 	 	 
	19.17	 	
Acceding Guarantors

	 	 	 
	19.17.1	 	
The Borrower undertakes to procure that:

	 	(a)	 	the aggregate turnover, fixed and current assets and the
contribution to EBITDA of the Obligors at all times are equal to or
more than 85 per cent. of the turnover, fixed and current assets
and EBITDA of the Group (excluding for the avoidance of doubt the
turnover and fixed and current assets of any Special Purpose
Subsidiary), as determined by reference to the latest financial
statements of the Obligors and the Group delivered to the Agent
under clause 21.1.4 (Financial statements) provided that (i) no
Special Purpose Subsidiary shall be required to become an Obligor
pursuant to this clause 19.17.1 (Guarantee and Indemnity), and (ii)
EBITDA shall be calculated in accordance with the Testing
Accounting Principles;
	 
	 	(b)	 	each Group Member which is the holder of a Licence which is
material in the context of the business, assets or financial
condition of the Group (taken as a whole) is an Obligor; and
	 
	 	(c)	 	no Subsidiary of the Borrower which is not an Obligor shall
issue, or give any guarantee in respect of, any Debt Instrument in
a principal amount in excess of US$50,000,000 other than a Special
Purpose Subsidiary in respect of Non-Recourse Liabilities.

	 	 	 
	19.17.2	 	
The Borrower shall procure that such of its Subsidiaries which may be
required to become an Obligor in order to comply with clause 19.17.1 (a),
(b) or (c) enters into and delivers to the Agent a Deed of Guarantor
Accession together with the documents and evidence set out in Schedule 7
(Documents and evidence to be delivered by Acceding Guarantors) in form
and substance satisfactory to the Agent, in accordance with clauses
19.17.3 or 19.17.4 as appropriate.
	 	 	 
	19.17.3	 	
Where a Subsidiary is required to become a Guarantor in order to
comply with clause 19.17.1(a) or (b), the delivery to the Agent of the
items referred to in clause 19.17.2 shall be effected within thirty days
of the date of delivery of financial statements pursuant to clause 21.1.4
(Financial statements) demonstrating that the turnover, fixed and current
assets or contribution to EBITDA of the Obligors in aggregate fell below
85 per cent. of the turnover, fixed and current assets or EBITDA of the
Group or the relevant Group Member becoming the holder of a relevant
Licence (as the case may be).
	 	 	 
	19.17.4	 	
Where a Subsidiary is required to become a Guarantor in order to
comply with clause 19.17.1(c) the delivery to the Agent of the items
referred to in clause 19.17.2 shall be effected on or before the date on
which such Subsidiary issues, or gives a guarantee in respect of, the
relevant Debt Instrument.

46

 

	 	 	 
	19.17.5	 	
The Agent may at the written request of the Borrower permit the
extension of any period referred to in clause 19.17.3 for such further
period as the Agent shall consider appropriate (acting reasonably), where
the Borrower provides confirmation satisfactory to the Agent that, by
virtue of either the need to comply with legal requirements in one or
more relevant jurisdiction(s), or the need to obtain consent of a third
party to the entry into the Deed of Guarantor Accession, the time period
imposed in clause 19.17.3 cannot be complied with. At the same time as
making any such request, the Borrower shall submit to the Agent details
of the relevant legal requirements or requisite third party consent(s)
together with details of the steps taken and proposed, to comply with
such requirement or to obtain such consent.
	 	 	 
	19.17.6	 	
The Borrower may request the Agent in writing to, and the Agent,
acting in accordance with the instructions of the Majority Lenders, shall
extend any of the periods referred to in clauses 19.17.3 and 19.17.4.

	 	 	 
	19.18	 	
Release of Guarantors
	 	 	 
	 	 	
If any Guarantor is no longer required to be an Obligor in order to comply
with clause 19.17.1 the Borrower may by written notice to the Agent
require that such Guarantor be released from its obligations under this
Agreement as a Guarantor. The Finance Parties agree to execute such
documentation as the relevant Guarantor may reasonably require to effect
its release as a Guarantor from the terms of this Agreement provided that
the Agent (acting reasonably) is satisfied that the obligations of the
other Obligors under this Agreement and of the parties to any Deed of
Subordination will remain in full force and effect notwithstanding such
release and such other Obligors undertake to execute such documentation as
the Agent may reasonably require in connection therewith.

47

 

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	 	 	 
	20	 	
Representations
	 	 	 
	20.1	 	
Representations and warranties
	 	 	 
	 	 	
Each Obligor represents and warrants to each Finance Party (the Borrower
in respect of itself and its Subsidiaries, and each other Obligor in
respect of itself only) that:

	 	 	 
	20.1.1	 	
Due incorporation of the Borrower
	 	 	 
	 	 	
the Borrower is duly incorporated and validly existing under the laws of
England and Wales as a limited liability company and has power to carry
on its business as it is now being conducted and to own its property and
other assets;
	 	 	 
	20.1.2	 	
Due incorporation of the Guarantors
	 	 	 
	 	 	
each Guarantor is duly incorporated and validly existing under the laws
of the country of its incorporation as a limited liability company and
has power to carry on its business as it is now being conducted and to
own its property and other assets;
	 	 	 
	20.1.3	 	
Corporate power to borrow or guarantee
	 	 	 
	 	 	
each Obligor has power to execute, deliver and perform its obligations
under the Finance Documents and each Group Member has power to execute,
deliver and perform its obligations under any Deed of Subordination to
which it is a party and (in the case of the Borrower) to borrow the
Commitments; all necessary corporate, shareholder and other action has
been taken by each Obligor and each other relevant Group Member to
authorise the execution, delivery and performance of the same and no
limitation on the powers of any Obligor to borrow or give guarantees
will be exceeded as a result of borrowings under this Agreement or as a
result of the giving of the guarantee contained in this Agreement;
	 	 	 
	20.1.4	 	
Binding obligations
	 	 	 
	 	 	
the Finance Documents and any Deed of Subordination constitute valid and
legally binding obligations of, in the case of the Finance Documents,
each Obligor and, in the case of any Deed of Subordination, each Group
Member party thereto enforceable in accordance with their respective
terms to the extent permitted by applicable law;
	 	 	 
	20.1.5	 	
No conflict with other obligations
	 	 	 
	 	 	
the execution and delivery of, the performance of its obligations under,
and compliance with the provisions of, the Finance Documents and any
Deed of Subordination by, in the case of the Finance Documents, each
Obligor and, in the case of any Deed of Subordination, each Group Member
party thereto will not (i) contravene, in any material respect any
existing applicable law, statute, rule or regulation or any judgment,
decree or permit to which such Obligor or Group Member is subject, (ii)
conflict with, or result in any breach of any of the terms of, or
constitute a default under, any agreement or other instrument to which
such Obligor or Group Member is a party or is subject or by which it or
any of its property is bound, (iii) contravene or conflict with any
provision of such Obligor’s or Group Member’s Memorandum and Articles of
Association or equivalent constitutional documents or (iv) result in the
creation or imposition of or oblige any Obligor or any of its
Subsidiaries to create any Encumbrance on any of such Obligor’s or any
of its Subsidiaries’, undertakings, assets, rights or revenues;
	 	 	 
	20.1.6	 	
Consents obtained
	 	 	 
	 	 	
every consent, authorisation, licence or approval of, or registration
with or declaration to, governmental or public bodies or authorities or
courts required by each Obligor to authorise,

48

 

	 	 	 
	 	 	
or required in connection with, the execution, delivery, validity,
enforceability or admissibility in evidence of the Finance Documents by
each Obligor or any Deed of Subordination by each Group Member party
thereto or the performance by each Obligor of its respective obligations
under the Finance Documents or by each relevant Group Member of its
respective obligations under any Deed of Subordination to which it is a
party, has been obtained or made and is in full force and effect in all
material respects and there has been no default in the observance of the
conditions or restrictions (if any) imposed in, or in connection with,
any of the same;
	 	 	 
	20.1.7	 	
No filings required
	 	 	 
	 	 	
it is not necessary to ensure the legality, validity, enforceability or
admissibility in evidence of the Finance Documents and any Deed of
Subordination that any such document or any other instrument be
notarised, filed, recorded, registered or enrolled in any court, public
office or elsewhere in any Relevant Jurisdiction or that any stamp,
registration or similar tax or charge be paid in any Relevant
Jurisdiction on or in relation to the Finance Documents or any Deed of
Subordination and the Finance Documents and any Deed of Subordination
are in proper form for their enforcement in the courts of each Relevant
Jurisdiction;
	 	 	 
	20.1.8	 	
No litigation
	 	 	 
	 	 	
save as set out in the Disclosure Letter, no litigation, arbitration or

administrative proceeding is:

	 	(a)	 	taking place; or
	 
	 	(b)	 	to the knowledge of the Executive Officers of each Obligor,
pending or threatened,

	 	 	 
	 	 	
against such Obligor or, where such Obligor is the Borrower, such
Obligor or any of its Subsidiaries, and in any such case which is
reasonably likely to have a material adverse effect on the business,
assets or financial condition of the Group (taken as a whole);
	 	 	 
	20.1.9	 	
No Default
	 	 	 
	 	 	
no Default has occurred and is continuing;
	 	 	 
	20.1.10	 	
Financial statements of the Obligors correct and complete

	 	(a)	 	the audited financial statements of the Obligors, and the
audited consolidated financial statements of the Group, in respect
of the financial year ended on 30 June 2002; and
	 
	 	(b)	 	the consolidated financial statements of the Group, in
respect of the Half Yearly Period ended on 31 December 2002,

	 	 	 
	 	 	
each as respectively delivered to the Agent, have been prepared in
accordance with the Original Accounting Principles which have been
consistently applied and present fairly and accurately the financial
position of each Obligor and the consolidated financial position of the
Group respectively as at such dates, and the results of the operations
of each Obligor and the consolidated results of the operations of the
Group respectively for the financial year and Half Yearly Period ended
on such dates. As at 30 June 2002 no Group Member had any liabilities
(contingent or otherwise) or any unrealised or unanticipated losses
which are not disclosed by, or reserved against or provided for in, such
audited financial statements which would have a material adverse effect
on the financial position of the Group as set out in such audited
financial statements;
	 	 	 
	20.1.11	 	
No material adverse change
	 	 	 
	 	 	
there has been no material adverse change in the financial position of
the Obligors or the consolidated financial position of the Group from
that set forth in the financial statements referred to in clause 20.1.10
which would have a material adverse effect on the ability of the

49

 

	 	 	 
	 	 	
Obligors (taken as a whole) to perform all or any of their obligations
under the Finance Documents;
	 	 	 
	20.1.12	 	
Information Memorandum
	 	 	 
	 	 	
to the best of its knowledge and belief, having made all reasonable and
careful enquiries:

	 	(a)	 	all factual information prepared or approved by the
Borrower for the purposes of the Facility that has been made
available to each Mandated Lead Arranger, any Lender or potential
Lender in connection with the Facility was, on the date on which it
was supplied, complete and correct in all material respects and
does not contain any untrue statement of material fact or omit to
state a material fact necessary in order to make the statements
contained therein not misleading in light of the circumstances
under which such statements were made; and
	 
	 	(b)	 	the amounts set out in the financial projections and
forecasts contained in table 4-1 (Summary Forecasts) of section 4
of the Information Memorandum (which have been prepared by the
Mandated Lead Arrangers on the basis of equity analysts’ forecasts)
do not differ in any material respect from the equivalent amounts
contained in the financial projections and forecasts prepared by
the Borrower for its own internal purposes; and
	 
	 	(c)	 	the sensitivities described in “sensitised cases A and B”,
as contained in tables 4-13 and 4-17 (Sensitivities) of section 4
of the Information Memorandum, reasonably reflect those
sensitivities that the Borrower would consider appropriate if
currently preparing sensitised financial projections for its own
internal purposes,

	 	 	 
	 	 	
it being understood that all financial projections are subject to
significant uncertainties and contingencies, many of which are beyond
the Borrower’s control, and that no assurance can be given that
projections will be realised.
	 	 	 
	20.1.13	 	
Choice of law
	 	 	 
	 	 	
the choice by the Obligors of English law to govern this Agreement and
the submission by each relevant Guarantor to the non-exclusive
jurisdiction of the English courts are valid and binding;
	 	 	 
	20.1.14	 	
Deduction of Tax
	 	 	 
	 	 	
as at the date of this Agreement, it is not required under the law of
its jurisdiction of incorporation to make any deduction for or on
account of Tax from any payment it may make under any Finance Document;
	 	 	 
	20.1.15	 	
Compliance with consents and licences

	 	(a)	 	every consent, authorisation, licence or approval required
by any Group Member (including the Licences and those required
under or pursuant to any Broadcasting Law) in connection with the
conduct by any Group Member of its business and the ownership, use,
exploitation or occupation of its property and assets has been
obtained and is in full force and effect and there has been no
default in the observance of the conditions and restrictions (if
any) imposed in, or in connection with, any of the same (save in
each case, where the failure to obtain the same or maintain the
same in full force and effect or such breach (as the case may be)
would not or is reasonably likely not to have a material adverse
effect on the business, assets or financial condition of the Group
(taken as a whole)); and
	 
	 	(b)	 	to the knowledge of the Executive Officers of the relevant
Obligor no circumstances have arisen whereby any remedial action is
reasonably likely to be required to be taken by, or at the expense
of, such Group Member under or pursuant to any law or regulation
(including, without limitation, any Broadcasting Law) applicable to
the

50

 

	 	 	 	business, property or assets of the Group (save in each case,
where the failure to take such remedial action would not or is
reasonably likely to not have a material adverse effect on the
business, assets or financial condition of the Group (taken as a whole));

	 	 	 
	20.1.16	 	
Copyright matters
	 	 	 
	 	 	
no Obligor has any knowledge, nor is it aware of any claim, that it or
any of its Subsidiaries is or may be liable to any person for any
copyright infringement of any nature whatsoever as a result of the
operation of its business which liability would or is reasonably likely
to have a material adverse effect on the ability of the Obligors and any
other relevant Group Member (taken as a whole) to perform all or any of
their obligations under or otherwise to comply with the terms of the
Finance Documents and any Deed of Subordination to which any of them is
a party;
	 	 	 
	20.1.17	 	
Broadcasting Laws
	 	 	 
	 	 	
the Borrower and its Subsidiaries comply in all material respects and
have at all times so complied with all applicable Broadcasting Laws save
where the failure to do so would not have a material adverse effect on
the ability of the Obligors and any other relevant Group Members (taken
as a whole) to perform all or any of their obligations under the Finance
Documents and any Deed of Subordination to which any of them is a party;
and

	 	 	 
	20.2	 	
Repetition
	 	 	 
	 	 	
The Repeating Representations are deemed to be made by each Obligor by
reference to the facts and circumstances then existing on:

	 	(a)	 	the date of each Utilisation Request and the first day of each
Interest Period; and
	 
	 	(b)	 	in the case of an Additional Obligor, the day on which the
company becomes (or it is proposed that the company becomes) an
Additional Obligor,

	 	 	 
	 	 	
but so that the representation and warranty in clause 20.1.10 (Financial
statements of the Obligors correct and complete) shall for this purpose
refer to the then latest financial statements of each Obligor and
consolidated financial statements of the Group verified by the auditors of
the Group (as relevant), as if the reference to “Original Accounting
Principles” were to the Reporting Accounting Principles and delivered to
the Agent under clause 21.1.4 (Financial statements).
	 	 	 
	21	 	
General undertakings
	 	 	 
	21.1	 	
Positive undertakings
	 	 	 
	 	 	
Each Obligor undertakes with each of the Lenders and the Agent that, from
the date of this Agreement and so long as any moneys are owing under the
Finance Documents and while all or any part of the Commitments remains
outstanding, it will:

	 	 	 
	21.1.1	 	
Notice of Default
	 	 	 
	 	 	
promptly inform the Agent of any occurrence of which it becomes aware
which is reasonably likely to affect materially adversely its ability to
perform its obligations under the Finance Documents and of any Default
forthwith upon becoming aware thereof and (in the case of the Borrower),
if so requested by the Agent, confirm to the Agent in writing that, save
as otherwise stated in such confirmation, no Default has occurred and is
continuing. For the purposes of this clause 21.1.1 an Obligor shall be
deemed to be aware of any matter if, (and only if) any of its Executive
Officers are aware of the same;

51

 

	 	 	 
	21.1.2	 	
Consents and licences
	 	 	 
	 	 	
without prejudice to clauses 5 (Conditions of Utilisation) and 20.1.11
(No material adverse change):

	 	(a)	 	obtain or cause to be obtained, maintain in full force and
effect and comply in all material respects with the conditions and
restrictions (if any) imposed in, or in connection with, every
consent, authorisation, licence or approval of governmental or
public bodies or authorities or courts necessary or desirable under
applicable law, save where failure to do so would not have a
material adverse effect on the due performance by the Obligors and
any other relevant Group Member (taken as a whole) of all or any of
their obligations under the Finance Documents and any Deed of
Subordination to which any of them is a party; and
	 
	 	(b)	 	do, or cause to be done, all other acts and things which
may from time to time be necessary or desirable under applicable
law for the continued due performance of all its or any of its
Subsidiaries’ obligations under the Finance Documents and any Deed
of Subordination to which any of them is a party;

	 	 	 
	21.1.3	 	
Pari passu
	 	 	 
	 	 	
ensure that its obligations under the Finance Documents shall, without
prejudice to the provisions of clause 21.2 (Negative undertakings), at
all times rank at least pari passu with all its other present and future
unsecured and unsubordinated Indebtedness, with the exception of any
obligations which are mandatorily preferred by law and not by contract;
	 	 	 
	21.1.4	 	
Financial statements

	 	(a)	 	prepare annual financial statements and (in the case of the
Borrower only) prepare annual consolidated financial statements,
each in accordance with the Reporting Accounting Principles, and
cause the same to be reported on by their respective auditors; and
	 
	 	(b)	 	(in the case of the Borrower only) prepare unaudited
financial statements and unaudited consolidated financial
statements for the Group in respect of each Half-Yearly Period on
the same basis as the statements referred to in (a) above (for the
avoidance of doubt including a statement of Total Debt and
reasonable details of the calculation thereof (such calculation to
be made in accordance with the Testing Accounting Principles) so as
to enable the Lenders to determine compliance or otherwise with the
undertakings contained in this Agreement and including details of
the outstanding amount of any Subordinated Loan); and
	 
	 	(c)	 	respectively deliver sufficient copies of the statements
referred to in (a) and (b) above to the Agent for distribution to
all the Lenders as soon as practicable but not later than 150 days
(in the case of audited financial statements) or 75 days (in the
case of unaudited financial statements) after the end of the
financial period to which they respectively relate provided that if
the Agent shall not have received such financial statements within
the relevant period, it shall notify the Borrower accordingly,
whereupon the Borrower shall deliver such statements to the Agent
within three Banking Days of the date of notification.

	 	 	 
	21.1.5	 	
Delivery of reports
	 	 	 
	 	 	
deliver to the Agent, for distribution to the Lenders, sufficient copies
for all the Lenders of each of the following documents, in each case at
the time of issue thereof or (in the case of the certificate referred to
in clause 21.1.5(c)) together with the financial statements prepared
pursuant to clause 21.1.4 (Financial statements) in respect of the
financial period to which such certificate relates:

52

 

	 	(a)	 	(in the case of the Borrower only) every report, circular,
notice or like document which the Borrower is required by law to
send to its shareholders;
	 
	 	(b)	 	(in the case of each Obligor) every report, circular,
notice or like document issued by such Obligor to its creditors
generally; and
	 
	 	(c)	 	(in the case of the Borrower only) a Compliance Certificate
from the Chief Financial Officer or another director of the
Borrower stating that the Borrower as at the date of its latest
consolidated financial statements (whether audited or unaudited)
and on the basis of such statements, was in compliance with the
covenants and undertakings in clauses 19.17.1(a) (Acceding
Guarantors) and 21.3 (Financial undertakings) (or if it was not in
compliance indicating the nature and extent of the breach);

	 	 	 
	21.1.6	 	
Provision of further information
	 	 	 
	 	 	
(in the case of the Borrower only) provide the Agent with such financial
and other information concerning the Borrower and its Subsidiaries and
their respective affairs as the Agent or any Bank (acting through the
Agent) may from time to time reasonably require and provide the Agent
with details of any proposed changes to the corporate structure of the
Group involving any Obligor and which are material in the context of the
Facility prior to the same becoming effective;
	 	 	 
	21.1.7	 	
Insurance
	 	 	 
	 	 	
(in the case of the Borrower only) insure or procure the insurance of
all its properties and fixed assets and procure that all the properties
and fixed assets of each of its Subsidiaries are insured, and take out
or procure the taking out of such other insurance, in all cases with
underwriters or insurance companies of repute, to such extent and
against such risks as prudent companies engaged in businesses similar to
those of the Borrower or the relevant Subsidiary (as the case may be),
normally insure including, without limitation, business interruption
insurance;
	 	 	 
	21.1.8	 	
Compliance with laws and regulations
	 	 	 
	 	 	
(in the case of the Borrower only) comply, and procure that its
Subsidiaries comply, in all material respects, with the terms and
conditions of all laws, regulations, agreements, licences and
concessions necessary or desirable in relation to the carrying on of its
business (including, without limitation, Broadcasting Laws) save where
the failure so to do would not have a material adverse effect on the
ability of the Obligors and any other relevant Group Members (taken as a
whole) to perform all or any of their obligations under the Finance
Documents and any Deed of Subordination to which any of them is a party;
	 	 	 
	21.1.9	 	
Environmental matters
	 	 	 
	 	 	
(in the case of the Borrower) comply, and procure that its Subsidiaries
comply, in all material respects with all material requirements of
Environmental Law applicable to the Borrower and its Subsidiaries to the
extent prudent in the context of the Group’s business and without
entailing excessive cost and promptly notify the Agent of any remedial
action required as a result of the enforcement of any Environmental Law,
to be taken by, or at the expense of, the Borrower, or any of its
Subsidiaries under or pursuant to any Environmental Law applicable to
the business, property or assets of the Borrower or any of its
Subsidiaries, the cost of which will exceed £5,000,000; and

	 	 	 
	21.2	 	
Negative undertakings
	 	 	 
	 	 	
Each Obligor undertakes with each of the Lenders and the Agent that, from
the date of this Agreement and so long as any moneys are owing under the
Finance Documents and while all or any part of the Commitments remains
outstanding, without the prior written consent of the Agent acting on the
instructions of the Majority Lenders:

53

 

	 	 	 
	21.2.1	 	
Negative pledge
	 	 	 
	 	 	
it will not permit, and will procure that none of its Subsidiaries
permits, any Encumbrance to subsist, arise or be created or extended
over all or any part of their respective present or future undertakings,
assets, rights or revenues to secure or prefer any present or future
Indebtedness of the Group or any other person, provided that any Obligor
and its respective Subsidiaries may permit to subsist:

	 	(a)	 	Encumbrances which secure Indebtedness in aggregate at any
time outstanding of not more than £50,000,000 (or its equivalent)
over:

	 	(i)	 	assets acquired after the date of this Agreement or
over the assets of companies which become Group Members after
such date, which, in each case, were in existence before the
date of acquisition of the asset or Group Member concerned and
were not created in contemplation of such acquisition, provided
that the amount secured by any such Encumbrance is not
increased and that such Encumbrances are not increased or
extended to other assets of any Group Member; and
	 
	 	(ii)	 	any asset or Investment acquired by any Group
Member after the date of this Agreement and created at the time
of such acquisition to secure payment of the purchase price of
such asset or Investment or to secure any Indebtedness incurred
for the purpose of financing such acquisition,
	 
	 	provided that (A) the Indebtedness so secured does not exceed the
acquisition cost of such asset or Investment, (B) such Encumbrances
are not increased or extended to other assets of any Group Member
and (C) any such Encumbrance is released within six months of the
date of acquisition of the asset.
	 
	 	For the purposes of this paragraph “Investment” means the entire
issued share capital of any company or corporation or all of the
assets, property or business of any company or corporation or any
assets that constitute a division or operating unit of the business
of any company or corporation;

	 	(b)	 	Encumbrances where the benefit of such Encumbrance or such
other Encumbrance as the Agent considers equivalent thereto is at
the same time extended equally and rateably to the obligations of
the Obligors under this Agreement to the satisfaction of the Agent;
	 
	 	(c)	 	Encumbrances by Group Members over assets the aggregate
value of which does not exceed £300,000,000 less (if the Group or
any member of it has effected any Permitted Securitisation) the
value (without double-counting) of all assets, loans, disposals and
Encumbrances which form part of any Permitted Securitisation,
provided that for these purposes the value of an asset shall be
determined as at the time of the creation of the Encumbrance or the
occurrence of any relevant Permitted Securitisation;
	 
	 	(d)	 	Encumbrances by, or over the share capital of, a Special
Purpose Subsidiary in respect of Non-Recourse Liabilities of that
Special Purpose Subsidiary;
	 
	 	(e)	 	Encumbrances granted in favour of the Finance Parties (or
any of them) over any Cash Collateral Account; and
	 
	 	(f)	 	Encumbrances approved by the Agent (acting on the
instructions of the Majority Lenders);

	 	 	 
	21.2.2	 	
Disposals
	 	 	 
	 	 	
save where such disposal is

	 	(a)	 	pursuant to a Permitted Securitisation;

54

 

	 	(b)	 	the disposal of any interest of any Group Member in a
Special Purpose Subsidiary; or
	 
	 	(c)	 	the disposal by a Special Purpose Subsidiary of any of its
undertaking, assets, rights or revenues,
	 
	 	it will not and, in the case of the Borrower, will procure that no Group
Member will in any financial year lend any asset other than as permitted
under clause 21.2.3 (Loans and guarantees) or sell, transfer, or
otherwise dispose of or cease to exercise direct control over any part
of its present or future undertaking, assets, rights or revenues
(whether by one or a series of transactions related or not and other
than in any such case to any other Group Member (other than a Special
Purpose Subsidiary)), which:
	 
	 	(A)	 	directly or indirectly generated 15 per cent. or more of
(i) the consolidated turnover for the Group for the previous
financial year, or (ii) EBITDA for the Group for the previous
financial year, or
	 
	 	(B)	 	which represented 15 per cent. or more of fixed and current
assets of the Group as at the last day of the previous financial
year,
	 
	 	all, if so requested by the Lenders, as separately certified by the
Group’s auditors, and in any event as shown in the consolidated audited
financial statements of the Group for the previous financial year
delivered to the Agent under this Agreement, but after having made such
adjustments as may be appropriate in the opinion of the Group’s auditors
in order that all such amounts are calculated in accordance with the
Testing Accounting Principles;

	 	 	 
	21.2.3	 	
Loans and guarantees
	 	 	 
	 	 	
it will not, and will procure that none of its Subsidiaries will:

	 	(a)	 	make any loans (other than:

	 	(i)	 	the lending of cash or assets pursuant to any
Permitted Securitisation,
	 
	 	(ii)	 	the lending of cash or assets to another Group
Member other than any Special Purpose Subsidiary provided that,
in relation to any such loan of an asset, the relevant loan
shall be on a short-term basis renewable only with the consent
of the relevant lender; or
	 
	 	(iii)	 	a loan to any Obligor),

	 	(b)	 	grant any credit (save for normal trade credit in the
ordinary course of business), or
	 
	 	(c)	 	give any guarantee to or for the benefit of any person
(other than a guarantee relating solely to performance obligations
of another Group Member other than any Special Purpose Subsidiary)
	 
	 	if, on (and as at) the date upon which any such loan is made, such
credit is granted or such guarantee is given, the ratio of Net Debt
(calculated in accordance with the Testing Accounting Principles and
taking into account the relevant loan, credit or guarantee) to EBITDA
(calculated in accordance with the Testing Accounting Principles as the
aggregate EBITDA for the two most recently preceding Half Yearly Periods
in respect of which a Compliance Certificate has been delivered to the
Agent in accordance with clause 21.1.5(c) (Delivery of reports)) would
exceed the ratio set out in clause 21.3.1 (Net Debt: EBITDA) against the
period during which such loan is to be made, such credit is to be
granted or such guarantee is to be given;

55

 

	 	 	 
	21.2.4	 	
Change in nature of business
	 	 	 
	 	 	
it will not and will procure that none of its Subsidiaries as at the
date of this Agreement makes any material change to the nature or
diversification of the businesses of the Group (taken as a whole) from
that of the businesses of (i) broadcasting (including the acquisition,
production and sale of programming content, entertainment, advertising,
broadcasting technology and data and interactive services) by any
distribution means, (ii) any and all media (including multimedia and the
internet), (iii) sporting activities, (iv) telecommunications and (v)
installation of products associated with any of the businesses referred
to in (i) to (iv) above and (vi) other businesses related to the
businesses at (i) to (v) above;
	 	 	 
	21.2.5	 	
Indebtedness
	 	 	 
	 	 	
it will not, and will procure that none of its Subsidiaries will,
create, assume, incur or otherwise permit to be outstanding any
Indebtedness (other than;

	 	(a)	 	under this Agreement;
	 
	 	(b)	 	in respect of any Subordinated Loan,
	 
	 	(c)	 	in respect of Indebtedness provided by another Group
Member; or
	 
	 	(d)	 	in respect of Indebtedness raised by a Special Purpose
Subsidiary in respect of its Non-Recourse Liabilities),
	 
	 	if, on (and as at) the date upon which such Indebtedness becomes
outstanding the ratio of Net Debt (calculated in accordance with the
Testing Accounting Principles and taking into account the relevant
Indebtedness) to EBITDA (calculated in accordance with the Testing
Accounting Principles as the aggregate EBITDA for the two most recently
preceding Half Yearly Periods in respect of which a Compliance
Certificate has been delivered to the Agent in accordance with clause
21.1.5(c) (Delivery of reports)) would exceed the ratio set out in
clause 21.3.1 (Net Debt: EBITDA) against the period during which such
Indebtedness is to become outstanding, unless:
	 
	 	(i)	 	the Agent, (acting on the instructions of the Majority
Lenders) has approved the terms of such Indebtedness; or
	 
	 	(ii)	 	the provider of such Indebtedness and the relevant Group
Member have first entered into such subordination and priority
arrangements in relation to such Indebtedness as the Agent (acting
on the instructions of the Majority Lenders) may require and
delivered to the Agent such evidence as it may reasonably require
that such arrangements are legal, valid and binding on such
provider and the relevant Group Member.

	 	 	 
	21.3	 	
Financial undertakings
	 	 	 
	 	 	
The Borrower undertakes with each Finance Party that, from the date of this
Agreement and so long as any moneys are owing under the Finance Documents
and while all or any part of the Commitments remain outstanding it will
ensure that:

	 	 	 
	21.3.1	 	
Net Debt: EBITDA
	 	 	 
	 	 	
on the last day of each Half Yearly Period of the Group falling during
the period set out in column (1) below, the ratio of Net Debt (taking
into account the amount of any Utilisation due to be made or repaid on
such day) to EBITDA (EBITDA being calculated as the aggregate EBITDA for
(x) such Half-Yearly Period and (y) the immediately preceding Half
Yearly Period as determined in accordance with a Compliance Certificate
delivered to the Agent in accordance with 21.1.5(c) (Delivery of
reports)), does not exceed the ratio set against the relevant period in
column (2) below:

56

 

	 	 	 
	(1)	 	(2)
	Period	 	Ratio
	
	 	

	From (and including) the date of this Agreement to (and including)
30 June 2003	 	
4.00:1
	1 July 2003 — 31 December 2003	 	
3.50:1
	1 January 2004 — 30 June 2004	 	
3.00:1
	Thereafter	 	
3.00:1

	 	 	 
	21.3.2	 	
Interest Cover
	 	 	 
	 	 	
on the last day of each Half Yearly Period of the Group falling during
the period set out in column (1) below the ratio of EBITDA to
Consolidated Interest Charges (calculated in each case as the aggregate
amounts for (x) such Half-Yearly Period and (y) the immediately
preceding Half Yearly Period as determined in accordance with a
Compliance Certificate delivered to the Agent in accordance with clause
21.1.5(c) (Delivery of reports)), shall not be less than the ratio set
against the relevant period in column (2) below:

	 	 	 
	(1)	 	(2)
	Period Ending	 	Ratio
	
	 	

	From (and including) the date of this Agreement to (and including)
30 June 2003	 	
3.00:1
	1 July 2003 — 31 December 2003	 	
3.50:1
	Thereafter	 	
3.50:1

	 	 	 
	21.4	 	
Auditors certificate
	 	 	 
	 	 	
If at any time the Majority Lenders consider that any figure set out in
any Compliance Certificate is not correct, they shall be entitled within
30 days of the date of the delivery of such Compliance Certificate to the
Agent pursuant to clause 21.1.5 (Delivery of reports) to require the Agent
to notify the Borrower accordingly. The Borrower and the Agent shall
arrange to meet to discuss such inaccuracy within 14 days of the date of
such notification with a view to reviewing the figures and remedying such
inaccuracy. In the event that such inaccuracy is not resolved to the
satisfaction of the Majority Lenders or if no such meeting is held within
the specified 14 day period, the Agent may at any time after the date of
such meeting or, as the case may be, after the expiry of the said 14 day
period call for a certificate from the auditors of the Group as to such
figure. For such purposes the Group’s auditors shall act as independent
experts and not as arbiters and every such certificate shall be addressed
to the Agent (on behalf of the Lenders) and be at the expense of the
Borrower. If the Majority Lenders call for such a certificate, all
calculations under this Agreement by reference to the relevant figure
shall (i) until the Group’s auditors deliver the relevant certificate
under this clause 21.4 (Auditors certificate) be made by reference to the
figure set out in the relevant Compliance Certificate delivered to the
Agent under this Agreement and (ii) following the delivery by the Group’s
auditors of a certificate under this clause 21.4 (Auditors certificate) be
made by reference to such certificate and the Borrower undertakes
forthwith to take all action, including, without limitation, the
prepayment of all or part of any Utilisation so as to procure that all
action hereunder taken on the basis of the relevant Compliance
Certificate, which on the basis of such auditors certificate is incorrect
and would not have been permitted, is reversed.

57

 

	 	 	 
	21.5	 	
Testing Accounting Principles

	 	 	 
	21.5.1	 	
Each amount calculated in respect of the Financial Definitions pursuant
to clauses 21.3 (Financial undertakings) and 21.4 (Auditors certificate)
shall be calculated in accordance with the Testing Accounting Principles.
	 	 	 
	21.5.2	 	
To the extent that the Borrower (or any other member of the Group)
adopts any new accounting policy or changes the consistency of
application of its accounting principles from the Original Accounting
Principles, the Borrower shall notify the Agent and, if required by the
Agent (acting on the instructions of the Majority Lenders) or the
Borrower, the parties shall negotiate in good faith to amend clause 21.3
(Financial Undertakings) and/or the Financial Definitions (or any of
them) as required by the Agent in order for it to be able to make the
same judgments as to the financial performance of the Group as it was
able to make under the accounting policy or practice which applied
immediately before the adoption of the revised policy or practice. If
such negotiations are not concluded to the satisfaction of the Agent
within 30 days, the Borrower agrees that it will either:

	 	(a)	 	provide financial statements prepared on the same basis as
before; or
	 
	 	(b)	 	provide financial statements prepared under the revised
policy or practice but containing a statement reconciling the
treatment of such statements under the accounting policy or
practice which applied before adoption of the revised policy or
practice with the treatment of such statements under the then
current accounting policy in order that the Agent may make the same
judgments as to the financial performance of the Group as it was
able to make under the accounting policy or practice which applied
immediately before the adoption of such revised policy or practice.
	 
	 	If:	 	 

	 	(i)	 	the Borrower has agreed with the Agent amendments
to clause 21.3 (Financial Undertakings) and/or the Financial
Definitions in accordance with this clause 21.5.2, then the
Testing Accounting Principles shall be the revised policy or
practice adopted by the Borrower which resulted in such
agreement; or
	 
	 	(ii)	 	the Borrower has not agreed with the Agent
amendments to clause 21.3 (Financial Undertakings) and/or the
Financial Definitions in accordance with this clause 21.5.2,
then the Testing Accounting Principles shall be the Testing
Accounting Principles which applied before adoption of the
revised policy or practice adopted by the Borrower.

	 	 	 
	22	 	
Events of Default
	 	 	 
	22.1	 	
Events of default
	 	 	 
	 	 	
Each of the events and circumstances set out below is an Event of Default
(whether or not caused by any reason outside the control of any Obligor):

	 	 	 
	22.1.1	 	
Non-payment: the Borrower fails to pay any sum due from it pursuant to
the Finance Documents in Sterling or the relevant Optional Currency, at
the time and in the manner stipulated in any relevant Finance Document
except where the failure to pay any such sum is due solely to technical
or administrative delays in the transmission of funds and such sum is
paid in full within three Banking Days after the due date for payment; or
	 	 	 
	22.1.2	 	
Breach of certain obligations: the Borrower or any Guarantor commits
any breach of or omits to observe any of the obligations or undertakings
expressed to be assumed by it under clauses 21.1.3 (Pari passu), 21.1.4
(Financial statements), 21.1.5(b) (Delivery of reports), 21.2 (Negative
undertakings) or 21.3 (Financial undertakings); or

58

 

	 	 	 
	22.1.3	 	
Breach of other obligations: any Group Member commits any breach of or
omits to observe any of the obligations or undertakings expressed to be
assumed by it pursuant to the Finance Documents (other than breaches
referred to in clauses 22.1.1 (Non-payment) and 22.1.2 (Breach of certain
obligations)) or any Subsidiary fails to become an Acceding Guarantor in
accordance with clause 19.17 (Acceding Guarantors), and, in respect of
any such breach or omission which in the opinion of the Majority Lenders,
acting reasonably, is capable of remedy, such action as the Agent may
require shall not have been taken within 28 days of the Agent notifying
the relevant Group Member of such default and of such required action; or
	 	 	 
	22.1.4	 	
Misrepresentation: any representation or warranty made or deemed to be
made or repeated by or in respect of any Obligor in or pursuant to this
Agreement or in any notice, certificate or statement referred to in or
delivered under this Agreement is or proves to have been incorrect or
misleading in any material respect; or
	 	 	 
	22.1.5	 	
Cross-default: any Indebtedness of any Group Member is not paid when
due or within any originally applicable grace period or becomes (whether
by declaration or automatically in accordance with the relevant agreement
or instrument constituting the same) due and payable prior to the date
when it would otherwise have become due or any creditor of any Group
Member becomes entitled (other than a creditor who is entitled in
accordance with the original terms on which such Indebtedness was made
available to demand immediate repayment of such Indebtedness at any time)
to declare any such Indebtedness due and payable being, in any such case,
an amount, or aggregate amount at any one time, of not less than
£25,000,000 when aggregated with any amount under any Hedging
Arrangements to which clause 22.1.6 (Hedging Default) applies provided
that the non-payment of Indebtedness due in respect of any Subordinated
Loan for so long as the relevant Group Member is prohibited from paying
by virtue of any Deed of Subordination shall not constitute an Event of
Default under this clause 22.1.5; or
	 	 	 
	22.1.6	 	
Hedging Default: any Group Member commits any breach or omits to
observe any of its obligations or undertakings expressed to be assumed by
it under any Hedging Arrangements of an amount or aggregate amount, at
one time, of not less than £25,000,000 when aggregated with any
Indebtedness to which clause 22.1.5 (Cross default) applies which breach
or omission amounts to an event of default or an event entitling the
relevant counterparty to terminate such Hedging Arrangements (howsoever
described); or
	 	 	 
	22.1.7	 	
Legal process: (i) any judgment or order made against any Group Member
is not stayed or is not complied with within such period as may be
designated in such judgment or order for compliance, or if no period is
so designated, within 14 days, or (ii) a creditor attaches or takes
possession of, or a distress, execution, sequestration or other process
is levied or enforced upon or sued out against, any of the undertakings,
assets, rights or revenues of any Group Member and is not discharged
within 14 days and (in each case) the same is in respect of claims in
aggregate at any one time of not less than £15,000,000; or
	 	 	 
	22.1.8	 	
Insolvency: any Group Member is deemed unable or admits inability to
pay its debts as they fall due pursuant to sections 123(1)(a), (b) or (e)
or (2) of the Insolvency Act 1986; suspends making payments on any of its
debts or announces an intention to do so; becomes insolvent; or suffers
the declaration of a moratorium in respect of any of its indebtedness; or
	 	 	 
	22.1.9	 	
Winding up: any corporate action, legal proceedings or other procedure
or step is taken for the purpose of winding up any Group Member (not
being a petition which the Borrower can demonstrate to the satisfaction
of the Agent, by providing an opinion of leading counsel to that effect,
is frivolous, vexatious or an abuse of the process of the court or
relates to a claim to which such Group Member has a good defence and
which is being vigorously contested by such Group Member) or an order is
made or resolution passed for the winding up of any Group Member or a
notice is issued convening a meeting for the purpose of passing any such
resolution other than (A) pursuant to a solvent reorganisation previously
approved in writing by the Majority Lenders, or (B) in relation to the
solvent winding up of any Group Member other than any Obligor; or

59

 

	 	 	 
	22.1.10	 	
Administration: any petition is presented, notice given or other step
is taken for the purpose of the appointment of an administrator of any
Group Member or any such petition or other step is imminent or an
administration order is made in relation to any Group Member; or
	 	 	 
	22.1.11	 	
Appointment of receivers and managers: any administrative or other
receiver is appointed of any Group Member or any part of their respective
assets and/or undertakings or any other steps are taken to enforce any
Encumbrance over all or any part of the assets of any Group Member; or
	 	 	 
	22.1.12	 	
Compositions: any corporate action, legal proceedings or other
procedures or steps are taken, or negotiations commenced, by any Group
Member or by any of their respective creditors (other than the Finance
Parties or any Finance Party) with a view to proposing any kind of
composition, compromise or arrangement involving such company and its
creditors generally; or
	 	 	 
	22.1.13	 	
Analogous proceedings: there occurs, in relation to any Group Member,
in any country or territory in which any of them carries on business or
to the jurisdiction of whose courts any part of their respective assets
is subject, any event which, in the reasonable opinion of the Agent,
appears in that country or territory to correspond with, or have an
effect equivalent or similar to, any of those mentioned in clauses 22.1.7
(Legal process) to 22.1.12 (Compositions) (inclusive) or any Group Member
otherwise becomes subject, in any such country or territory, to the
operation of any law relating to insolvency, bankruptcy or liquidation;
or
	 	 	 
	22.1.14	 	
Cessation of business: any Group Member suspends or ceases or
threatens to suspend or cease to carry on its respective business other
than (A) pursuant to a solvent reorganisation previously approved in
writing by the Majority Lenders or (B) in relation to the solvent winding
up of any Group Member other than any Obligor; or
	 	 	 
	22.1.15	 	
Seizure: all or a material part of the undertakings, assets, rights
or revenues of, or shares or other ownership interests in, any Group
Member are seized, nationalised, expropriated or compulsorily acquired by
or under the authority of any government; or
	 	 	 
	22.1.16	 	
Unlawfulness: it becomes unlawful at any time for any Group Member to
perform all or any of its obligations under the Finance Documents or any
Deed of Subordination to which it is a party; or
	 	 	 
	22.1.17	 	
Repudiation: any Obligor repudiates any Finance Document, or any
relevant Group Member repudiates any Deed of Subordination to which it is
a party, or, in the case of an Obligor, does or causes or permits to be
done any act or thing evidencing an intention to repudiate any Finance
Document or, in the case of any relevant Group Member, any Deed of
Subordination to which it is a party; or
	 	 	 
	22.1.18	 	
Material adverse change: there occurs a material adverse change in
the financial condition or operations of the Group by reference to the
audited financial statements referred to in clause 20.1.10 (Financial
statements of the Obligors correct and complete) (as repeated from time
to time) which would have a material adverse effect on the ability of the
Obligors (taken as a whole) to perform all or any of their obligations
under the Finance Documents; or
	 	 	 
	22.1.19	 	
Obligations of any Guarantor ceasing to be effective: save to the
extent set out in the qualifications to any legal opinion delivered to
the Agent in accordance with clause 5.1 (Initial conditions precedent) or
clause 19.17 (Acceding Guarantors), the obligations of any Guarantor
under the Finance Documents become invalid, ineffective or unenforceable
for any reason and such Guarantor is not replaced in accordance with
clause 19.17 (Acceding Guarantors) to ensure on-going compliance with,
inter alia, clause 19.17.1; or
	 	 	 
	22.1.20	 	
Licences: any of the Licences are not granted or are suspended,
revoked, cancelled, withdrawn, terminated, expired and are not renewed or
otherwise cease to be in full force

60

 

	 	 	and effect, which event or circumstance would have a material adverse
effect on the ability of the Obligors and any other relevant Group
Member (taken as a whole) to perform all or any of their obligations
under the Finance Documents and any Deed of Subordination to which any
of them is a party,
	 
	 	 	provided that there shall not be an Event of Default solely by reason of
(A) any of the events or circumstances described in clause 22.1.5 (Cross
default), 22.1.6 (Hedging default), 22.1.7 (Legal process), 22.1.8
(Insolvency), 22.1.9 (Winding up), 22.1.10 (Administration), 22.1.11
(Appointment of receivers and managers), 22.1.12 (Compositions), 22.1.13
(Analogous proceedings), 22.1.14 (Cessation of business), 22.1.15
(Seizure) or 22.1.18 (Material adverse change) taking place with respect
to (i) a Special Purpose Subsidiary or (ii) any other Subsidiary of the
Borrower which is not an Obligor unless (in the case of (ii) only), in
the reasonable opinion of the Majority Lenders, the ability of the
Obligors and any other relevant Group Member (taken as a whole) to
perform all or any of their respective obligations under, or otherwise
to comply in all material respects with the terms of, the Finance
Documents and any Deed of Subordination to which any of them is a party,
shall be materially and adversely affected or (B) the enforcement of any
Encumbrance over the share capital of a Special Purpose Subsidiary.
	 

	22.2	 	Acceleration
	 
	 	 	The Agent may and if so requested by the Majority Lenders shall, without
prejudice to any other rights of the Lenders, at any time after the
happening of an Event of Default so long as the same is continuing by
notice to the Borrower declare that:
	 

	22.2.1	 	the obligation of each Lender to make its Commitment available shall be
terminated, whereupon the Commitments shall be reduced to zero forthwith;
and/or
	 
	22.2.2	 	 declare that full cash cover in respect of each Letter of Credit is
immediately due and payable, whereupon it shall become immediately due
and payable; and/or
	 
	22.2.3	 	all outstanding Utilisations and all interest, fees and commitment
commission accrued and all other sums payable under the Finance Documents
have become immediately due and payable or have become due and payable on
demand, whereupon the same shall, immediately or in accordance with the
terms of such notice, become so due and payable.
	 

	22.3	 	 Demand basis
	 
	 	 	If, pursuant to clause 22.2 (Acceleration), the Agent declares all
outstanding Utilisations to be due and payable on demand then, at any time
thereafter, the Agent may (and, if so instructed by the Majority Lenders,
shall) by written notice to the Borrower (i) call for repayment of the
Loans and the discharge of the LC Liabilities on such date as may be
specified in such notice (provided that any such date so specified shall
not be a date earlier than the date of such notice) whereupon the Loans
and the LC Liabilities shall become due and payable (and/or as
appropriate, due for discharge) on the date so specified together with all
interest and commitment commission accrued and all other sums payable
under the Finance Documents or (ii) withdraw such declaration with effect
from the date specified in such notice.

61

 

SECTION 9

CHANGES TO PARTIES

	23	 	 Changes to the Lenders
	 
	23.1	 	Assignments and transfers by the Lenders
	 
	 	 	Subject to this clause 23 (Changes to Lenders), a Lender (the “Existing
Lender”) may:

	 	(a)	 	assign any of its rights; or
	 
	 	(b)	 	transfer by novation any of its rights and obligations,

	 	 	to another bank or financial institution (the “New Lender”).
	 
	23.2	 	Conditions of assignment or transfer
	 

	23.2.1	 	The consent of the Borrower is required for transfer or assignment by a
Lender, unless the transfer or assignment is to an Affiliate of a Lender,
or is made following the occurrence of an Event of Default.
	 
	23.2.2	 	 The consent of the Borrower to an assignment or transfer must not be
unreasonably withheld or delayed where the proposed New Lender is a
Qualifying Lender. The Borrower will be deemed to have given its consent
five Banking Days after the Lender has requested it unless consent is
expressly refused by the Borrower within that time.
	 
	23.2.3	 	 The consent of the Borrower to an assignment or transfer must not be
withheld solely because the assignment or transfer may result in an
increase to the Mandatory Cost.
	 
	23.2.4	 	An assignment will only be effective on receipt by the Agent of written
confirmation from the New Lender (in form and substance satisfactory to
the Agent) that the New Lender will assume the same obligations to the
other Finance Parties as it would have been under if it was an Original
Lender.
	 
	23.2.5	 	 A transfer will only be effective if the procedure set out in clause
23.5 (Procedure for transfer) is complied with.
	 
	23.2.6	 	

	 	(a)	 	Any transfer by an Existing Lender to a New Lender shall
only be effective if it transfers the Existing Lender’s share of
the Facility.
	 
	 	(b)	 	Any transfer by an Existing Lender to a New Lender of part
of its rights or obligations under this Agreement shall be of at
least £5,000,000.
	 
	 	(c)	 	Where an Existing Lender transfers part of its rights and
obligations pursuant to clause 23.5 (Procedure for transfer), that
Existing Lender must transfer equal fractions of its Commitment and
participation in the Utilisations (if any) under the Facility.
	 
	 	(d)	 	If at the time when a transfer takes effect more than one
Utilisation is outstanding under the Facility, the transfer of an
Existing Lender’s participation shall take effect in respect of the
same fraction of each such Utilisation.

	23.2.7	 	 If:

	 	(a)	 	a Lender assigns or transfers any of its rights or
obligations under this Agreement or changes its Facility Office;
and

62

 

	 	(b)	 	as a result of circumstances existing at the date the
assignment, transfer or change occurs, an Obligor would be obliged
to make a payment to the New Lender or Lender acting through its
new Facility Office under clause 14 (Tax gross-up and indemnities)
or clause 15 (Increased Costs),

	 	 	then the New Lender or Lender acting through its new Facility Office is
only entitled to receive payment under those clauses to the same extent
as the Existing Lender or Lender acting through its previous Facility
Office would have been if the assignment, transfer or change had not
occurred.
	 

	23.3	 	 Assignment or transfer fee
	 
	 	 	The New Lender shall, on the date upon which an assignment or transfer
takes effect, pay to the Agent (for its own account) a fee of £1,000.
	 
	23.4	 	 Limitation of responsibility of Existing Lenders
	 

	23.4.1	 	 Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender
for:

	 	(a)	 	the legality, validity, effectiveness, adequacy or
enforceability of the Finance Documents or any other documents;
	 
	 	(b)	 	the financial condition of any Obligor and its related
entities;
	 
	 	(c)	 	the performance and observance by any Obligor of its
obligations under the Finance Documents or any other documents; or
	 
	 	(d)	 	the accuracy of any statements (whether written or oral)
made in or in connection with any Finance Document or any other
document,

	 	 	and any representations or warranties implied by law are excluded.

	 
	23.4.2	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

	 	(a)	 	has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs
of each Obligor and its related entities in connection with its
participation in this Agreement and has not relied exclusively on
any information provided to it by the Existing Lender in connection
with any Finance Document; and
	 
	 	(b)	 	will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities whilst
any amount is or may be outstanding under the Finance Documents or
any Commitment is in force.

	23.4.3	 	 Nothing in any Finance Document obliges an Existing Lender to:

	 	(a)	 	accept a re-transfer from a New Lender of any of the rights
and obligations assigned or transferred under this clause 23; or
	 
	 	(b)	 	support any losses directly or indirectly incurred by the
New Lender by reason of the non-performance by any Obligor of its
obligations under the Finance Documents or otherwise.

	23.5	 	 Procedure for transfer
	 

	23.5.1	 	 Subject to the conditions set out in clause 23.2 (Conditions of
assignment or transfer) a transfer is effected in accordance with clause
23.5.2 when the Agent executes an otherwise duly completed Transfer
Certificate delivered to it by the Existing Lender and the New

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	 	 	Lender. The Agent shall, as soon as reasonably practicable after
receipt by it of a duly completed Transfer Certificate appearing on its
face to comply with the terms of this Agreement and delivered in
accordance with the terms of this Agreement, execute that Transfer
Certificate.
	 
	23.5.2	 	 On the Transfer Date:

	 	(a)	 	to the extent that in the Transfer Certificate the Existing
Lender seeks to transfer by novation its rights and obligations
under this Agreement each of the Obligors and the Existing Lender
shall be released from further obligations towards one another
under this Agreement and their respective rights against one
another shall be cancelled (being the “Discharged Rights and
Obligations”);
	 
	 	(b)	 	each of the Obligors and the New Lender shall assume
obligations towards one another and/or acquire rights against one
another which differ from the Discharged Rights and Obligations
only insofar as that Obligor and the New Lender have assumed and/or
acquired the same in place of that Obligor and the Existing Lender;
	 
	 	(c)	 	the Agent, the Mandated Lead Arrangers, the New Lender and
other Lenders shall acquire the same rights and assume the same
obligations between themselves as they would have acquired and
assumed had the New Lender been an Original Lender with the rights
and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Agent, the Mandated Lead Arrangers
and the Existing Lender shall each be released from further
obligations to each other under this Agreement; and
	 
	 	(d)	 	the New Lender shall become a Party as a “Lender”.

	23.5.3	 	Disclosure of information
	 
	 	 	Any Lender may disclose to any of its Affiliates and any other person:

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

	 	 	any information about any Obligor, the Group and the Finance Documents
as that Lender shall consider appropriate if, in relation to clauses
23.5.3(a) and (b), the person to whom the information is to be given has
entered into a confidentiality undertaking in a form reasonably
acceptable to the Borrower and the Agent.
	 

	24	 	 Changes to the Obligors
	 
	 	 	No Obligor may assign any of its rights or transfer any of its rights or
obligations under this Agreement.

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SECTION 10

THE FINANCE PARTIES

	25	 	Role of the Agent and the Mandated Lead Arrangers
	 
	25.1	 	Appointment of the Agent
	 

	25.1.1	 	 Each Finance Party appoints the Agent to act as its agent under and in
connection with the Finance Documents.
	 
	25.1.2	 	 Each Finance Party authorises the Agent to exercise the rights, powers,
authorities and discretions specifically given to the Agent under or in
connection with the Finance Documents together with any other incidental
rights, powers, authorities and discretions.
	 

	25.2	 	 Duties of the Agent

	 
	25.2.1	 	 The Agent shall promptly forward to a Party the original or a copy of
any document which is delivered to the Agent for that Party by any other
Party.
	 
	25.2.2	 	 If the Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a
Default, it shall promptly notify the other Finance Parties.
	 
	25.2.3	 	 The Agent shall promptly notify the other Finance Parties of any
Default arising under clause 22.1.1 (Non-payment).
	 
	25.2.4	 	 The Agent’s duties under the Finance Documents are solely mechanical
and administrative in nature.
	 

	25.3	 	 Role of the Mandated Lead Arrangers
	 
	 	 	Except as specifically provided in the Finance Documents, no MLA has any
obligations of any kind to any other Party under or in connection with any
Finance Document.
	 
	25.4	 	 No fiduciary duties

	 
	25.4.1	 	 Nothing in this Agreement constitutes the Agent or any MLA as a trustee
or fiduciary of any other person.
	 
	25.4.2	 	 Neither the Agent nor any MLA shall be bound to account to any Finance
Party for any sum or the profit element of any sum received by it for its
own account.
	 

	25.5	 	 Business with the Group
	 
	 	 	The Agent and the Mandated Lead Arrangers may accept deposits from, lend
money to and generally engage in any kind of banking or other business
with any member of the Group.
	 
	25.6	 	 Rights and discretions of the Agent
	 

	25.6.1	 	 The Agent may rely on:

	 	(a)	 	any representation, notice or document believed by it to be
genuine, correct and appropriately authorised; and

65

 

	 	(b)	 	any statement made by a director, authorised signatory or
employee of any person regarding any matters which may reasonably
be assumed to be within his knowledge or within his power to
verify.

	25.6.2	 	 The Agent may assume (unless it has received notice to the contrary in
its capacity as agent for the Lenders or, as the case may be, trustee for
the Finance Parties) that:

	 	(a)	 	no Default has occurred (unless it has actual knowledge of
a Default arising under clause 22.1.1 (Non-payment));
	 
	 	(b)	 	any right, power, authority or discretion vested in any
Party or the Majority Lenders has not been exercised; and
	 
	 	(c)	 	any notice or request made by the Borrower (other than a
Utilisation Request) is made on behalf of and with the consent and
knowledge of all the Obligors.

	25.6.3	 	The Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.
	 
	25.6.4	 	 The Agent may act in relation to the Finance Documents through its
personnel and agents.
	 

	25.7	 	Instructions to Agent
	 

	25.7.1	 	Unless a contrary indication appears in a Finance Document, the Agent
shall (a) act in accordance with any instructions given to it by the
Majority Lenders (or, if so instructed by the Majority Lenders, refrain
from acting or exercising any right, power, authority or discretion
vested in it as Agent) and (b) not be liable for any act (or omission) if
it acts (or refrains from taking any action) in accordance with such an
instruction of the Majority Lenders.
	 
	25.7.2	 	 Unless a contrary indication appears in a Finance Document, any
instructions given to the Agent by the Majority Lenders will be binding
on all the Finance Parties.
	 
	25.7.3	 	 The Agent may refrain from acting in accordance with the instructions
of the Majority Lenders (or, if appropriate, the Lenders) until it has
received such security as it may require for any cost, loss or liability
(together with any associated VAT) which it may incur in complying with
the instructions.
	 
	25.7.4	 	 In the absence of instructions from, in the case of the Agent, the
Majority Lenders, (or, if appropriate, the Lenders) the Agent may act (or
refrain from taking action) as it considers to be in the best interest of
the Lenders. The Borrower and all other Obligors shall not be concerned
with whether the Agent shall be acting in accordance with this provision
and shall be conclusively entitled to assume that the Agent has all the
necessary right, title and authority.
	 
	25.7.5	 	 The Agent is not authorised to act on behalf of a Finance Party
(without first obtaining that Finance Party’s consent) in any legal or
arbitration proceedings relating to any Finance Document.
	 
	25.7.6	 	 Each Obligor shall be entitled (and bound) to assume that any
directions given by the Agent or pursuant to this Agreement are either
the directions of the Majority Lenders or, as the case may be, the
Lenders, being made through the Agent, or the directions of the Agent
itself, acting pursuant to the provisions of the Finance Documents to
which the Agent may from time to time be party (as appropriate) or as
otherwise duly authorised or empowered by or on behalf of the Lenders.
	 

	25.8	 	 Responsibility for documentation
	 
	 	 	Neither the Agent nor any MLA:

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	25.8.1	 	is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by the Agent, any MLA, an
Obligor or any other person given in or in connection with any Finance
Document or the Information Memorandum; or
	 
	25.8.2	 	 is responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement,
arrangement or document entered into, made or executed in anticipation of
or in connection with any Finance Document.
	 

	25.9	 	 Exclusion of liability

	 
	25.9.1	 	 Without limiting clause 25.9.2, the Agent will not be liable for any
action taken by it under or in connection with any Finance Document,
unless directly caused by its gross negligence or wilful misconduct.
	 
	25.9.2	 	 No Party may take any proceedings against any officer, employee or
agent of the Agent in respect of any claim it might have against the
Agent or in respect of any act or omission of any kind by that officer,
employee or agent in relation to any Finance Document and any officer,
employee or agent of the Agent may rely on this clause 25.9.2.
	 
	 	 	Any third party referred to in this clause 25.9.2 may enjoy the benefit
and enforce the terms of this clause 25.9.2 in accordance with the
provisions of the Contracts (Rights of Third Parties) Act 1999.
	 
	25.9.3	 	 The Agent will not be liable for any delay (or any related
consequences) in crediting an account with an amount required under the
Finance Documents to be paid by the Agent if it has taken all necessary
steps as soon as reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used
by it for that purpose.

	 
	25.10	 	 Lenders’ indemnity to the Agent
	 

	25.10.1	 	 Each Lender shall (in proportion to its share of the Total Commitments
or, if the Total Commitments are then zero, to its share of the Total
Commitments immediately prior to their reduction to zero) indemnify the
Agent, within three Banking Days of demand, against any cost, loss or
liability incurred by the Agent (otherwise than by reason of the Agent’s
gross negligence or wilful misconduct) in acting as Agent under the
Finance Documents (unless the Agent has been reimbursed by an Obligor
pursuant to a Finance Document).
	 
	25.10.2	 	 Each Obligor shall counter-indemnify the Lenders against all payments
made by them under this clause 25.10.

	 
	25.11	 	 Resignation of the Agent
	 

	25.11.1	 	The Agent may resign and appoint one of its Affiliates acting through
an office in London as successor by giving notice to the other Finance
Parties and the Borrower.
	 
	25.11.2	 	 Alternatively the Agent may resign by giving notice to the other
Finance Parties and the Borrower, in which case the Majority Lenders
(after consultation with the Borrower) may appoint a successor Agent, as
the case may be.
	 
	25.11.3	 	 If the Majority Lenders have not appointed a successor Agent in
accordance with clause 25.11.2 within 30 days after notice of resignation
was given, the Agent, as the case may be, (after consultation with the
Borrower) may appoint a successor Agent (acting through an office in
London).
	 
	25.11.4	 	The retiring Agent shall, at its own cost, make available to the
successor Agent such documents and records and provide such assistance as
the successor Agent may reasonably request for the purposes of performing
its functions as Agent under the Finance Documents.

67

 

	25.11.5	 	 The resignation notice of the Agent shall only take effect upon the
appointment of a successor.
	 
	25.11.6	 	 Upon the appointment of a successor, the retiring Agent shall be
discharged from any further obligation in respect of the Finance
Documents but shall remain entitled to the benefit of this clause 25
(Role of the Agent and the Mandated Lead Arrangers). Its successor and
each of the other Parties shall have the same rights and obligations
amongst themselves as they would have had if such successor had been an
original Party.
	 
	25.11.7	 	 After consultation with the Borrower, the Majority Lenders may, by
notice to the Agent, require it to resign in accordance with clause
25.11.2. In this event, the Agent (as the case may be) shall resign in
accordance with clause 25.11.2.
	 

	25.12	 	 Confidentiality
	 

	25.12.1	 	In acting as agent for the Finance Parties, the Agent shall be
regarded as acting through its agency or loan administration division
which shall be treated as a separate entity from any other of its
divisions or departments.
	 
	25.12.2	 	 If information is received by another division or department of the
Agent, it may be treated as confidential to that division or department
and the Agent shall not be deemed to have notice of it.
	 
	25.12.3	 	 Notwithstanding any other provision of any Finance Document to the
contrary, neither the Agent nor any MLA is obliged to disclose to any
other person (i) any confidential information or (ii) any other
information if the disclosure would or might in its reasonable opinion
constitute a breach of any law or a breach of a fiduciary duty.
	 

	25.13	 	 Relationship with the Lenders
	 

	25.13.1	 	 The Agent may treat each Lender as a Lender, entitled to payments
under the Finance Documents and acting through its Facility Office unless
the Agent has received not less than five Banking Days prior notice from
that Lender to the contrary in accordance with the terms of this
Agreement.
	 
	25.13.2	 	 Each Lender shall supply the Agent with any information required by
the Agent in order to calculate the Mandatory Cost in accordance with
Schedule 4 (Mandatory Cost formulae).
	 

	25.14	 	Credit appraisal by the Lenders
	 
	 	 	Without affecting the responsibility of any Obligor for information
supplied by it or on its behalf in connection with any Finance Document,
each Finance Party confirms to the Agent and the Mandated Lead Arrangers
that it has been, and will continue to be, solely responsible for making
its own independent appraisal and investigation of all risks arising under
or in connection with any Finance Document including but not limited to:
	 

	25.14.1	 	 the financial condition, status and nature of each member of the
Group;
	 
	25.14.2	 	 the legality, validity, effectiveness, adequacy or enforceability of
any Finance Document and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection
with any Finance Document;
	 
	25.14.3	 	 whether that Lender has recourse, and the nature and extent of that
recourse, against any Party or any of its respective assets under or in
connection with any Finance Document, the transactions contemplated by
the Finance Documents or any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection
with any Finance Document; and
	 
	25.14.4	 	 the adequacy, accuracy and/or completeness of the Information
Memorandum and any other information provided by the Agent, any Party or
by any other person under or in

68

 

	 	 	connection with any Finance Document, the transactions contemplated by
the Finance Documents or any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in
connection with any Finance Document.
	 

	25.15	 	 Lenders’ tax status confirmation
	 
	 	 	Each Lender confirms in favour of the Agent and the Borrower on the date
of this Agreement or, in the case of a Lender which becomes a Party
pursuant to a transfer or assignment, on the date on which the relevant
transfer or assignment becomes effective that it is a Qualifying Lender
(and undertakes to notify the Agent and the Borrower to the extent that it
is a Treaty Lender), and each Lender shall promptly notify the Agent and
the Borrower if there is any change in its position from that set out
above.
	 
	25.16	 	 Reference Bank
	 
	 	 	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender
of which it is an Affiliate) ceases to be a Lender, the Agent shall (in
consultation with the Borrower) appoint another Lender or an Affiliate of
a Lender to replace that Reference Bank.
	 
	25.17	 	 Compliance
	 
	 	 	The Agent may refrain from doing anything which might, in its reasonable
opinion, constitute a breach of any law or regulation or be otherwise
actionable at the suit of any person, and may do anything which, in its
opinion, is necessary or desirable to comply with any law or regulation of
any jurisdiction.
	 
	25.18	 	 Agent’s management time
	 
	 	 	Any amount payable to the Agent under clause 16.3 (Indemnity to the
Agent), clause 18 (Costs and expenses) and clause 25.10 (Lenders’
indemnity to the Agent) shall include the cost of utilising the Agent’s
management time or other resources, and will be calculated on the basis
of such reasonable daily or hourly rates as the Agent may notify to the
Borrower and the Lenders, and is in addition to any fee paid or payable to
the Agent pursuant to clause 13 (Fees).
	 
	26	 	 Conduct of business by the Finance Parties
	 
	 	 	No provision of this Agreement will:
	 

	26.1.1	 	 interfere with the right of any Finance Party to arrange its affairs
(tax or otherwise) in whatever manner it thinks fit;
	 
	26.1.2	 	 oblige any Finance Party to investigate or claim any credit, relief,
remission or repayment available to it or the extent, order and manner of
any claim; or
	 
	26.1.3	 	 oblige any Finance Party to disclose any information relating to its
affairs (tax or otherwise) or any computations in respect of Tax.
	 

	27	 	 Sharing among the Finance Parties
	 
	27.1	 	 Payments to Finance Parties
	 
	 	 	If a Finance Party (a “Recovering Lender”) receives or recovers any amount
from an Obligor other than in accordance with clause 28 (Payment mechanics)
and applies that amount to a payment due under the Finance Documents then:
	 

	27.1.1	 	the Recovering Lender shall, within three Banking Days, notify details
of the receipt or recovery to the Agent;

69

 

	27.1.2 	 	 the Agent shall determine whether the receipt or recovery is in excess
of the amount the Recovering Lender would have been paid had the receipt
or recovery been received or made by the Agent and distributed in
accordance with clause 28 (Payment mechanics), without taking account of
any Tax which would be imposed on the Agent in relation to the receipt,
recovery or distribution; and
	 
	27.1.3	 	 the Recovering Lender shall, within three Banking Days of demand by the
Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such
receipt or recovery less any amount which the Agent determines may be
retained by the Recovering Lender as its share of any payment to be made,
in accordance with clause 28.5 (Partial payments).

	 
	27.2	 	 Redistribution of payments
	 
	 	 	The Agent shall treat the Sharing Payment as if it had been paid by the
relevant Obligor and distribute it between the Finance Parties (other than
the Recovering Lender) in accordance with clause 28.5 (Partial payments).
	 
	27.3	 	 Recovering Lender’s rights
	 

	27.3.1	 	 On a distribution by the Agent under clause 27.2 (Redistribution of
payments), the Recovering Lender will be subrogated to the rights of the
Finance Parties which have shared in the redistribution.
	 
	27.3.2	 	 If and to the extent that the Recovering Lender is not able to rely on
its rights under clause 27.3.1, the relevant Obligor shall be liable to
the Recovering Lender for a debt equal to the Sharing Payment which is
immediately due and payable.
	 

	27.4	 	 Reversal of redistribution
	 
	 	 	If any part of the Sharing Payment received or recovered by a Recovering
Lender becomes repayable and is repaid by that Recovering Lender, then:
	 

	27.4.1	 	 each Finance Party which has received a share of the relevant Sharing
Payment pursuant to clause 27.2 (Redistribution of payments) shall, upon
request of the Agent, pay to the Agent for account of that Recovering
Lender an amount equal to its share of the Sharing Payment (together
with an amount as is necessary to reimburse that Recovering Lender for
its proportion of any interest on the Sharing Payment which that
Recovering Lender is required to pay); and
	 
	27.4.2	 	 that Recovering Lender’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable
to the reimbursing Finance Party for the amount so reimbursed.
	 

	27.5	 	 Exceptions
	 

	27.5.1	 	 This clause 27 shall not apply to the extent that the Recovering Lender
would not, after making any payment pursuant to this clause, have a valid
and enforceable claim against the relevant Obligor.
	 
	27.5.2	 	A Recovering Lender is not obliged to share with any other Lender any
amount which the Recovering Lender has received or recovered as a result
of taking legal or arbitration proceedings, if:

	 	(a)	 	it notified the other Lenders of the legal or arbitration
proceedings; and
	 
	 	(b)	 	the other Lenders had an opportunity to participate in
those legal or arbitration proceedings but did not do so as soon as
reasonably practicable having received notice or did not take
separate legal or arbitration proceedings.

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SECTION 11

ADMINISTRATION

	28	 	Payment mechanics
	 
	28.1	 	 Payments to the Agent

	 
	28.1.1	 	 On each date on which an Obligor or a Lender is required to make a
payment under a Finance Document, that Obligor or Lender shall make the
same available to the Agent (unless a contrary indication appears in a
Finance Document) for value on the due date at the time and in such funds
specified by the Agent as being customary at the time for settlement of
transactions in the relevant currency in the place of payment.
	 
	28.1.2	 	 Payment shall be made to such account in the principal financial centre
of the country of that currency (or, in relation to euro, in a principal
financial centre in a Participating Member State or London) with such
bank as the Agent specifies.
	 

	28.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another
Party shall, subject to clause 28.3 (Distributions to an Obligor) and
clause 28.4 (Clawback) be made available by the Agent as soon as
practicable after receipt to the Party entitled to receive payment in
accordance with this Agreement (in the case of a Lender, for the account
of its Facility Office), to such account as that Party may notify to the
Agent by not less than five Banking Days’ notice with a bank in the
principal financial centre of the country of that currency (or, in
relation to euro, in the principal financial centre of a Participating
Member State or London).
	 
	28.3	 	 Distributions to an Obligor
	 
	 	 	The Agent may (with the consent of the Obligor or in accordance with
clause 29 (Set-off)) apply any amount received by it for that Obligor in
or towards payment (on the date and in the currency and funds of receipt)
of any amount due from that Obligor under the Finance Documents or in or
towards purchase of any amount of any currency to be so applied.
	 
	28.4	 	 Clawback

	 
	28.4.1	 	 Where a sum is to be paid to the Agent under the Finance Documents for
another Party, the Agent is not obliged to pay that sum to that other
Party (or to enter into or perform any related exchange contract) until
it has been able to establish to its satisfaction that it has actually
received that sum.
	 
	28.4.2	 	 If the Agent pays an amount to another Party and it proves to be the
case that the Agent had not actually received that amount, then the Party
to whom that amount (or the proceeds of any related exchange contract)
was paid by the Agent shall on demand refund the same to the Agent
together with interest on that amount from the date of payment to the
date of receipt by the Agent, calculated by the Agent to reflect its cost
of funds.
	 

	28.5	 	Partial payments
	 

	28.5.1	 	 If the Agent receives a payment that is insufficient to discharge all
the amounts then due and payable by an Obligor under the Finance
Documents, the Agent shall apply that payment towards the obligations of
that Obligor under the Finance Documents in the following order:

	 	(a)	 	first, in or towards payment pro-rata of any unpaid fees,
costs and expenses (ignoring any fees payable under clause 13
(Fees)) of the Agent or the Mandated Lead Arrangers under the
Finance Documents;

71

 

	 	(b)	 	secondly, in or towards payment to the Lenders pro-rata of
any amount owing to the Lenders under clause 25.10 (Lenders’
indemnity to the Agent);
	 
	 	(c)	 	thirdly, in or towards payment to the Mandated Lead
Arrangers of any portion of the arrangement fee payable under
clause 13 (Fees) which is due but unpaid;
	 
	 	(d)	 	fourthly, in or towards payment to the Agent of any portion
of the agency fee payable under clause 13 (Fees) which is due but
unpaid;
	 
	 	(e)	 	fifthly, in or towards payment to the Lenders pro-rata of
any accrued commitment commission or letter of credit fees payable
under clause 13 (Fees) which are due but unpaid;
	 
	 	(f)	 	sixthly, in or towards payment to the Lenders pro-rata of
any accrued interest and guarantee and fronting fees relating to
Letters of Credit and which are due but unpaid but so that any
amount payable by virtue of clause 14 (Tax Gross up and
indemnities) shall be excluded;
	 
	 	(g)	 	seventhly, in or towards payment to the Lenders pro-rata of
any principal including LC Liabilities which is due but unpaid;
	 
	 	(h)	 	eighthly, in or towards payment to the relevant Lenders
pro-rata of any amount payable to those Lenders by virtue of clause
14 (Tax Gross up and indemnities) which is unpaid; and
	 
	 	(i)	 	ninthly, in or towards payment pro-rata of any other sum
due but unpaid under the Finance Documents.

	 	 	Each reference in clause 28.5.1(a) to (e) (inclusive) to a category of
unpaid sums shall include interest on those sums payable in accordance
with this Agreement (including, without limitation, default interest).
Accordingly, clause 28.5.1(f) refers to interest on principal and
accrued interest on those sums which remain unpaid to the extent due.
	 
	28.5.2	 	 The Agent shall, if so directed by the Majority Lenders, vary the order
set out in clause 28.5.1(e) to (i) above.
	 
	28.5.3	 	 Clauses 28.5.1 and 28.5.2 will override any appropriation made by an
Obligor.
	 

	28.6	 	 No set-off by Obligors
	 
	 	 	All payments to be made by an Obligor under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim.
	 
	28.7	 	Banking Days
	 

	28.7.1	 	 Any payment which is due to be made on a day that is not a Banking Day
shall be made on the next Banking Day in the same calendar month (if
there is one) or the preceding Banking Day (if there is not).
	 
	28.7.2	 	During any extension of the due date for payment of any principal or an
Unpaid Sum under this Agreement interest is payable on the principal at
the rate payable on the original due date.
	 

	28.8	 	Currency of account
	 

	28.8.1	 	 Subject to clauses 28.8.2 to 28.8.5 below, the Base Currency is the
currency of account and payment for any sum due from an Obligor under any
Finance Document.

72

 

	28.8.2	 	 A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation
or Unpaid Sum shall be made in the currency in which that Utilisation or
Unpaid Sum is denominated on its due date.
	 
	28.8.3	 	 Each payment of interest shall be made in the currency in which the sum
in respect of which the interest is payable was denominated when that
interest accrued.
	 
	28.8.4	 	 Each payment in respect of costs, expenses or Taxes shall be made in
the currency in which the costs, expenses or Taxes are incurred.
	 
	28.8.5	 	 Any amount expressed to be payable in a currency other than the Base
Currency shall be paid in that other currency.
	 

	28.9	 	 Change of currency
	 

	28.9.1	 	 Unless otherwise prohibited by law, if more than one currency or
currency unit are at the same time recognised by the central bank of any
country as the lawful currency of that country, then:
	 

	 	(a)	 	any reference in the Finance Documents to, and any
obligations arising under the Finance Documents in, the currency of
that country shall be translated into, or paid in, the currency or
currency unit of that country designated by the Agent (after
consultation with the Borrower); and

	 	(b)	 	any translation from one currency or currency unit to
another shall be at the official rate of exchange recognised by the
central bank for the conversion of that currency or currency unit
into the other, rounded up or down by the Agent (acting
reasonably).
	 

	28.9.2	 	 If a change in any currency of a country occurs, this Agreement will,
to the extent the Agent (acting reasonably and after consultation with
the Borrower) specifies to be necessary, be amended to comply with any
generally accepted conventions and market practice in the Relevant
Interbank Market and otherwise to reflect the change in currency.

	28.10	 	 Cash Collateral Accounts
	 

	28.10.1	 	 Each amount from time to time standing to the credit of a Cash
Collateral Account shall be applied in accordance with the relevant
provisions of the Finance Documents (including clauses 28.10.3(b)) and no
other withdrawals may be made from any Cash Collateral Account without
the consent of the Agent.
	 
	28.10.2	 	 The Borrower shall, or shall procure that any other member of the
Group shall, execute such further documents as are necessary to ensure
that each Cash Collateral Account is charged in favour of the Agent or
other relevant Finance Party (as relevant) to the satisfaction of the
Agent acting reasonably.
	 
	28.10.3	 	

	 	(a)	 	Each amount from time to time standing to the credit of a
Cash Collateral Account shall bear interest by reference to
successive deposit periods at the rate at which the Agent or other
relevant Finance Party (as relevant) pays interest on deposits for
such period from its corporate customers but the Borrower
acknowledges that none of the Finance Parties shall have any
responsibility to the Borrower for any loss occasioned as a
consequence of the application of the amount standing to the credit
of any Cash Collateral Account prior to the last day of any such
deposit period, such application being expressly permitted by the
terms of the Finance Documents other than in the case of their
negligence, wilful default or misconduct.
	 
	 	(b)	 	In respect of each Cash Collateral Account, provided no
Default shall have occurred and be continuing, the Agent or other
relevant Finance Party (as relevant) shall, at the request of the
Borrower, pay to the Borrower any interest that has accrued on the
amount standing to the credit of such Cash Collateral Account.
Such interest shall only

73

 

	 	 	be paid at six-monthly intervals or on such days that the principal
amount standing to the credit of such Cash Collateral Account is
reduced to zero pursuant to the terms of this Agreement.

	29	 	Set-off
	 
	 	 	A Finance Party may set off any matured obligation due from an Obligor
under the Finance Documents (to the extent beneficially owned by that
Finance Party) against any matured obligation owed by that Finance Party
to that Obligor, regardless of the place of payment, booking branch or
currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market
rate of exchange in its usual course of business for the purpose of the
set-off.
	 
	30	 	Notices
	 
	30.1	 	 Communications in writing
	 
	 	 	Any communication to be made under or in connection with the Finance
Documents shall be made in writing and, unless otherwise stated, may be
made by fax or letter.
	 
	30.2	 	 Addresses
	 
	 	 	The address and fax number (and the department or officer, if any, for
whose attention the communication is to be made) of each Party for any
communication or document to be made or delivered under or in connection
with the Finance Documents is:

	 	(a)	 	in the case of the Borrower, that identified with its name in
Schedule 1 (The Original Parties);
	 
	 	(b)	 	in the case of each Lender or any other Obligor, that
identified with its name in Schedule 1 (The Original Parties) or
otherwise notified in writing to the Agent on or prior to the date on
which it becomes a Party; and
	 
	 	(c)	 	in the case of the Agent, that identified with its name in
Schedule 1 (The Original Parities),

	 	 	or any substitute address, fax number or department or officer as the
Party may notify to the Agent (or the Agent may notify to the other
Parties, if a change is made by the Agent) by not less than five Banking
Days’ notice.
	 
	30.3	 	 Delivery
	 

	30.3.1	 	 Any communication or document made or delivered by one person to
another under or in connection with the Finance Documents will only be
effective:

	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	(b)	 	if by way of letter, when it has been left at the relevant
address or five Banking Days after being deposited in the post
postage prepaid in an envelope addressed to it at that address;

	 	 	and, if a particular department or officer is specified as part of its
address details provided under clause 30.2 (Addresses), if addressed to
that department or officer.
	 
	30.3.2	 	 Any communication or document to be made or delivered to the Agent will
be effective only when actually received by the Agent and then only if it
is expressly marked for the attention of the department or officer
identified with the Agent’s signature below (or any substitute department
or officer as the Agent shall specify for this purpose).
	 
	30.3.3	 	 All notices from or to an Obligor shall be sent through the Agent.

74

 

	30.3.4	 	 Any communication or document made or delivered to the Borrower in
accordance with this clause will be deemed to have been made or delivered
to each of the Obligors.
	 

	30.4	 	 Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address or fax number or
change of address or fax number pursuant to clause 30.2 (Addresses) or
changing its own address or fax number, the Agent shall notify the other
Parties.
	 
	30.5	 	English language
	 

	30.5.1	 	 Any notice given under or in connection with any Finance Document must be in English.
	 
	30.5.2	 	 All other documents provided under or in connection with any Finance Document must be:

	 	(a)	 	in English; or
	 
	 	(b)	 	if not in English, and if so required by the Agent,
accompanied by a certified English translation and, in this case,
the English translation will prevail unless the document is a
constitutional, statutory or other official document.

	31	 	Calculations and certificates
	 
	31.1	 	 Accounts
	 
	 	 	In any litigation or arbitration proceedings arising out of or in
connection with a Finance Document, the entries made in the accounts
maintained by a Finance Party are prima facie evidence of the matters to
which they relate.
	 
	31.2	 	 Certificates and Determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount
under any Finance Document is, in the absence of manifest error,
conclusive evidence of the matters to which it relates.
	 
	31.3	 	 Day count convention
	 
	 	 	Any interest, commission or fee accruing under a Finance Document will
accrue from day to day and is calculated on the basis of the actual number
of days elapsed and a year of 365 days or, in any case where the practice
in the Relevant Interbank Market differs, in accordance with that market
practice.
	 
	32	 	Partial invalidity
	 
	 	 	If, at any time, any provision of the Finance Documents is or becomes
illegal, invalid or unenforceable in any respect under any law of any
jurisdiction, neither the legality, validity or enforceability of the
remaining provisions nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction will in any way be
affected or impaired.
	 
	33	 	Remedies and waivers
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of any
Finance Party, any right or remedy under the Finance Documents shall
operate as a waiver, nor shall any single or partial exercise of any right
or remedy prevent any further or other exercise or the exercise of any
other right or remedy. The rights and remedies provided in this Agreement
are cumulative and not exclusive of any rights or remedies provided by
law.

75

 

	34	 	Amendments and waivers
	 
	34.1	 	 Required consents
	 

	34.1.1	 	 Subject to clause 34.2 (Exceptions) and clause 34.4 (Amendments
binding) any term of the Finance Documents may be amended or waived only
with the consent of the Majority Lenders and the Obligors party thereto
and any such amendment or waiver will be binding on all Parties.
	 
	34.1.2	 	
 The Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this clause.

	 
	34.2	 	 Exceptions
	 

	34.2.1	 	 An amendment or waiver that has the effect of changing or which relates
to:

	 	(a)	 	the definition of “Majority Lenders” in clause 1.2
(Definitions);
	 
	 	(b)	 	an extension to the date of payment of any amount under the
Finance Documents or to any Availability Period;
	 
	 	(c)	 	a reduction in the Margin or the amount of any payment of
principal, interest, fees or commission payable;
	 
	 	(d)	 	the currency in which any amount is payable under any
Finance Document;
	 
	 	(e)	 	an increase in Commitment;
	 
	 	(f)	 	a change to the Borrower or Guarantors other than in
accordance with clause 24 (Changes to the Obligors);
	 
	 	(g)	 	any provision which expressly requires the consent of all
the Lenders; or
	 
	 	(h)	 	clause 3.2 (Lenders’ rights and obligations), clause 23
(Changes to the Lenders), clause 27.1 (Payments to Lenders) or this
clause 34.

	 	 	shall not be made without the prior consent of all the Lenders.
	 
	34.2.2	 	 An amendment or waiver which relates to the rights or obligations of
the Agent or an MLA may not be effected without the consent of the Agent
or such MLA.
	 

	34.3	 	 Releases
	 
	 	 	Except with the prior consent of all the Finance Parties, the Agent shall
not have authority to release:
	 

	34.3.1	 	any Obligor from the subordination arrangements constituted by any Deed
of Subordination; or
	 
	34.3.2	 	any Obligor from any of its guarantee or other assurance obligations
under this Agreement,
	 
	 	 	in each case, other than any such release as part of a disposal made
pursuant to clause 21.2.2 (Disposals).
	 

	34.4	 	 Amendments binding
	 
	 	 	Without prejudice to the other provisions of this Agreement each Obligor
confirms that if the Borrower and the Finance Parties or any of them enter
into any amendment or supplement to, or restatement of, this Agreement, the
Borrower’s execution of any such amendment,

76

 

	 	 	supplement or restatement, whether or not expressly or purportedly made on
behalf of that Obligor, shall bind that Obligor without the need to obtain
any confirmation or acknowledgement from such Obligor. For this purpose,
each Obligor, for the benefit of the Finance Parties, irrevocably
designates, appoints and empowers the Borrower as its agent and attorney.
	 
	35	 	Counterparts
	 
	 	 	Each Finance Document may be executed in any number of counterparts, and
this has the same effect as if the signatures on the counterparts were on
a single copy of the Finance Document.

77

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

	36	 	Governing law
	 
	 	 	This Agreement is governed by English law.
	 
	37	 	Enforcement
	 
	37.1	 	 Jurisdiction of English courts
	 

	37.1.1	 	 The courts of England have exclusive jurisdiction to settle any dispute
arising out of or in connection with this Agreement (including a dispute
regarding the existence, validity or termination of this Agreement) (a
“Dispute”).
	 
	37.1.2	 	 The Parties agree that the courts of England are the most appropriate
and convenient courts to settle Disputes and accordingly no Party will
argue to the contrary.
	 
	37.1.3	 	 This clause 37.1 is for the benefit of the Finance Parties only. As a
result, no Finance Party shall be prevented from taking proceedings
relating to a Dispute in any other courts with jurisdiction. To the
extent allowed by law, the Finance Parties may take concurrent
proceedings in any number of jurisdictions.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

78

 

Schedule 1

The Original Parties

Part I — The Obligors

	 	 	 
	Name of Borrower	 	
Registration number (or equivalent, if any)
	 	 	 
	British Sky Broadcasting Group PLC	 	
2247735
	Grant Way	 	 
	Isleworth	 	 
	Middlesex	 	 
	TW7 5QD	 	 
	 	 	 
	Fax: 0207 705 3453	 	 
	Attention: Chief Financial Officer	 	 
	 	 	 
	Name of Original Guarantor	 	
Registration number (or equivalent, if any)
	 	 	 
	British Sky Broadcasting Limited	 	
2906991
	Grant Way	 	 
	Isleworth	 	 
	Middlesex	 	 
	TW7 5QD	 	 
	 	 	 
	Fax: 0207 705 3453	 	 
	Attention: Chief Financial Officer	 	 
	 	 	 
	Sky Subscribers Services Limited	 	
2340150
	Grant Way	 	 
	Isleworth	 	 
	Middlesex	 	 
	TW7 5QD	 	 
	 	 	 
	Fax: 0207 705 3453	 	 
	Attention: Chief Financial Officer	 	 

79

 

Part II — The Agent and the Original Lenders

	 	 	 	 	 	 	 
	Name of Original Lender	 	Commitment (£)	 	Contact Details
	
	 	
	 	

	Barclays Bank PLC	 	 	
42,000,000	 	 	5, The North Colonnade

Canary Wharf

London E14 4BB

Mark Pope/Cliff Baylis

Fax: 020 7773 1840
	 	 	 	 	 	 	 
	Citibank, N.A	 	 	
42,000,000	 	 	33, Canada Square

Canary Wharf

London

E14 5LB

Contact: Asif Butt, UK
Loans
 Processing Unit

Fax: 020 7500 5806

Cc: Michael Llewelyn-Jones

Fax: 020 7986 2331
	 	 	 	 	 	 	 
	Deutsche Bank AG London	 	 	
42,000,000	 	 	Winchester House

1 Great Winchester Street

London

EC2N 2DB

Contact: Conor McGovern

Fax: 020 7545 4638

Cc: Anne Gravier

Fax: 020 7545 1868
	 	 	 	 	 	 	 
	Allied Irish Banks, p.l.c	 	 	
34,000,000	 	 	St Helen’s

1 Undershaft

London

EC3A 8AB

Contact: Antoinette Dunleavy

Fax: 020 7726 8735

Cc: Michael Barry

Fax: 020 7090 7101
	 	 	 	 	 	 	 
	Bayerische Landesbank	 	 	
34,000,000	 	 	Bavaria House

13/14 Appold Street

London

EC2A 2NB

Contact: Loans

Administration

Fax: 020 7955 5822

Cc: Brian Clark

Fax: 020 7955 5129
	 	 	 	 	 	 	 

80

 

	 	 	 	 	 	 	 
	Commerzbank

Aktiengesellschaft,

London Branch	 	 	
34,000,000	 	 	23, Austin Friars

London

EC2N 2NB

Contact: Aubrey Evans

Fax: 020 7418 4870

Cc: Kevin Buck/ Kenny Mackay

Fax: 020 7418 4957
	 	 	 	 	 	 	 
	Credit Lyonnais	 	 	
34,000,000	 	 	Broadwalk House

5 Appold Street

London

EC2A 2DA

Contact: Loans

Administration

Fax: 020 7214 6816

Cc: Katy Brown/ Steve Tubb

Fax: 020 7214 7159
	 	 	 	 	 	 	 
	HSBC Bank plc	 	 	
34,000,000	 	 	8 Canada Square

London

E14 5HQ

Contact: Process Manager,

Loans Administration

Fax: 020 7992 4680
	 	 	 	 	 	 	 
	ING Bank	 	 	
34,000,000	 	 	Media Finance Group

Bljlmerplein 888

1102 MG Amsterdam

P.O. Box 1800

1000 BV Amsterdam

Location Code: HE 02.01

The Netherlands

Contact: Annelies Hartog/
Rene
van Versendaal

Fax: 00 31 20 56 35239

Cc: S.A.L. Haanraadts

Fax: 00 31 20 57 68089
	 	 	 	 	 	 	 
	JPMorgan Chase Bank	 	 	
34,000,000	 	 	125 London Wall

London

EC2Y 5AJ

Contact: Julie Farrant/ Sue

Dalton

Fax: 020 7777 5311/ 5305

Cc: John Blackborough

Fax: 020 7777 1493
	 	 	 	 	 	 	 
	Lloyds TSB Bank Plc	 	 	
34,000,000	 	 	Corporate Banking

St George’s House

81

 

	 	 	 	 	 	 	 
	 	 	 	
 	 	 	6-8 Eastcheap

London

EC3M 1AE

Contact: Sandra Powell/ Bob

Martyn

Fax: 0117 923 3367

Cc: David Burke

Fax: 020 7661 4942
	 	 	 	 	 	 	 
	Societe Generale	 	 	
34,000,000	 	 	41 Tower Hill

London

EC3N 4SG

Contact: Gilles Jacob/ Eric

Harouard

Fax: 00 331 4214 0618

Cc: Bruce Pomford

Fax: 020 7762 5351
	 	 	 	 	 	 	 
	The Royal Bank of
Scotland plc	 	 	
34,000,000	 	 	Corporate and Institutional

Banking

135 Bishopsgate

London

EC2M 3UR

Contact: John Shippey/
Kevin
Mann, Loans

Administration

Fax: 020 7615 0135

Cc: Mike Cunningham, Eddie

Dec, Gerard McHugh

Fax: 020 7375 8549
	 	 	 	 	 	 	 
	WestLB AG, London Branch	 	 	
34,000,000	 	 	Woolgate Exchange

25 Basinghall Street

London

EC2V 5HA

Contact: Jutta Brown/ David

Williams

Fax: 020 7020 7620

Cc: Achim Teske/ Tony Dennis

Fax: 020 7020 7850
	 	 	 	 	 	 	 
	BNP Paribas London Branch	 	 	
20,000,000	 	 	10 Harewood Avenue

London

NW1 6AA

Contact: Mike Webber/
Kristian
Baxter, Loans and

Agency Desk

Fax: 020 7595 6195

Cc: Owen Medler

82

 

	 	 	 	 	 	 	 
	 	 	 	
 	 	 	
Fax: 020 7595 5019
	 	 	 	 	 	 	 
	Credit Suisse First

Boston, London Branch	 	 	
20,000,000	 	 	One Cabot Square

London E14 4QJ

Contact: Sonia Hoffmann,

Loan Services

Fax: 020 7888 8125

Cc: Kamlesh Vara

Fax: 020 7888 8391
	 	 	 	 	 	 	 
	Scotiabank Europe Plc	 	 	
20,000,000	 	 	Scotia House

33 Finsbury Square

London

EC2A 1BB

Contact: Joanne Coombs/Steven

Caller

Fax: 020 7826 5857

Cc: Nikki Petherbridge/Enrica

Collini

Fax: 020 7454 9019
	 	 	 	 	 	 	 
	The Bank of New York	 	 	
20,000,000	 	 	One Canada Square

London

E14 5AL

Contact: The Loans

Department

Fax: 020 7964 6032

Cc: Jason Garwood

Fax: 020 7964 6193
	 	 	 	 	 	 	 
	The Governor and Company
of the Bank of Ireland	 	 	
20,000,000	 	 	C/o P.O. Box 27

Broad Quay

Bristol BF99 7AX

Contact: Emer Flood

Fax: 00 353 1 618 7490

Cc: Conor Linehan

Fax: 00 353 1 829 0129

	 	 	 
	Agent	 	Contact Details
	
	 	

	Barclays Bank PLC	 	
5, The North Colonnade

Canary Wharf

London

E14 4BB

Contact: Craig Evans

Fax: 0207 773 4893

83

 

Schedule 2

Conditions precedent

Conditions precedent to initial Utilisation

	1	 	A copy, certified as a true, complete and up-to-date copy by the Company
Secretary or a Director of the relevant company of the Memorandum and
Articles of Association or equivalent constitutional documents of the
Borrower and the Original Guarantors.
	 
	2	 	A copy, certified as a true copy by the Company Secretary or a Director
of the relevant company, of resolutions of the Board of Directors or a
Committee of the Board of Directors of the Borrower and the Original
Guarantors evidencing approval of the Finance Documents and authorising
its appropriate officers to execute and deliver the Finance Documents and
to give all notices and take all other action required under the Finance
Documents.
	 
	3	 	Specimen signatures, authenticated by the Company Secretary or a Director
of the relevant company of the persons authorised in the resolutions of
the Boards of Directors or equivalent, as referred to in paragraph 2
above.
	 
	4	 	An opinion of Norton Rose.
	 
	5	 	An unaudited schedule of all Indebtedness of the Group as at the date of this Agreement.
	 
	6	 	An unaudited schedule of all Hedging Arrangements in place as at the date of this Agreement.
	 
	7	 	Evidence that the first Utilisation of the Facility will be used for the
repayment and cancellation in full of the Existing £750 million Facility.
	 
	8	 	Evidence of the cancellation of at least £100,000,000 of the commitment
available under the Existing £300 million Facility.
	 
	9	 	The consolidated audited financial statements of the Borrower for the
financial year ending 30 June 2002.
	 
	10	 	The audited financial statements of each Original Guarantor for the
financial year ending 30 June 2002.
	 
	11	 	The unaudited interim financial statements of the Borrower and each of
the Original Guarantors for the period ending 31 December 2002.
	 
	12	 	The Fee Letters duly signed by the parties thereto.
	 
	13	 	The Disclosure Letter.

84

 

Schedule 3

Requests

Part I — Utilisation Request

[FOR A LOAN]

	 	 	 
	From:	 	
[Borrower]
	To:	 	
[Agent]

Dated:

Dear Sirs

British Sky Broadcasting Group plc £600,000,000 Multi-currency revolving credit facility

dated [     ] (as from time to time amended, varied or restated

the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement
shall have the same meanings where used in this Utilisation Request.

	1	 	We wish to make a Utilisation on the following terms:
	 
	 	 	Proposed Utilisation Date:      [      ] (or, if that is not a Banking Day, the next
Banking Day)
	 
	 	 	Currency of Loan:      [      ]
	 
	 	 	Amount:      [      ] or, if less, the Available Facility
	 
	 	 	Interest Period:      [      ]
	 
	2	 	We confirm that each condition specified in clause 5.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.
	 
	3	 	The proceeds of this Loan should be credited to [account].
	 
	4	 	This Utilisation Request is irrevocable.

Yours faithfully

.......................................

Authorised Officer of

British Sky Broadcasting Group PLC

85

 

Part II — Utilisation Request

[FOR A LETTER OF CREDIT]

	 	 	 
	From:	 	
[Borrower]
	To:	 	
[Agent]

Dated:

Dear Sirs

British Sky Broadcasting Group PLC

£600,000,000 Multi-currency revolving credit facility

agreement dated [•] 2003 (as amended

from time to time)

(the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement
shall have the same meanings where used in this Utilisation Request.

	1	 	We wish to arrange for a Letter of Credit to be issued on the following terms:

Proposed Utilisation Date:      [      ] (or, if that is not a Banking Day, the next
Banking Day)
	 
	 	 	Maturity Date:      [      ]
	 
	 	 	Currency:
	 
	 	 	Amount:      [      ] or, if less, the Available Facility (subject always to the LC Limit)
	 
	 	 	Beneficiary: [           ] (the “Beneficiary”)
	 
	 	 	Attached as Annex [A] are details of the documentation and other
instruments evidencing the guaranteed obligation.
	 
	 	 	Attached as Annex [B] is the form of Letter of Credit required by the
Beneficiary, as previously approved by you.
	 
	 	 	[Delivery instructions]
	 
	2	 	We confirm that each condition specified in clause 5.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.
	 
	3	 	This Utilisation Request is irrevocable.

Yours faithfully

.......................................

Authorised Officer of

British Sky Broadcasting Group PLC

86

 

Schedule 4

Mandatory Cost formulae

	1	 	The Mandatory Cost is an addition to the interest rate to compensate
Lenders for the cost of compliance with (a) the requirements of the Bank
of England and/or the Financial Services Authority (or, in either case,
any other authority which replaces all or any of its functions) or (b) the
requirements of the European Central Bank.
	 
	2	 	On the first day of each Interest Period (or as soon as possible
thereafter) the Agent shall calculate, as a percentage rate, a rate (the
“Additional Cost Rate”) for each Lender, in accordance with the paragraphs
set out below. The Mandatory Cost will be calculated by the Agent as a
weighted average of the Lenders’ Additional Cost Rates (weighted in
proportion to the percentage participation of each Lender in the relevant
Loan) and will be expressed as a percentage rate per annum.
	 
	3	 	The Additional Cost Rate for any Lender lending from a Facility Office in
a Participating Member State will be the percentage notified by that
Lender to the Agent. This percentage will be certified by that Lender in
its notice to the Agent to be its reasonable determination of the cost
(expressed as a percentage of that Lender’s participation in all Loans
made from that Facility Office) of complying with the minimum reserve
requirements of the European Central Bank in respect of loans made from
that Facility Office.
	 
	4	 	The Additional Cost Rate for any Lender lending from a Facility Office in
the United Kingdom will be calculated by the Agent as follows:
	 
	 	 	in relation to a sterling Loan:

	 	 	 
	AB+C(B-D)+E*0.01	 	 
	
	 	
per cent. per annum
	100-(A+C)	 	 

     in relation to a Loan in any currency other than sterling:

	 	 	 
	E*0.01	 	 
	
	 	
per cent. per annum.
	300	 	 

     Where:

	 	A 	 	is the percentage of Eligible Liabilities (assuming these to be
in excess of any stated minimum) which that Lender is from time to
time required to maintain as an interest free cash ratio deposit with
the Bank of England to comply with cash ratio requirements.
	 
	 	B	 	is the percentage rate of interest (excluding the Margin and the
Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate
of interest specified in clause #10.3 (Default Interest)) payable for
the relevant Interest Period on the Loan.
	 
	 	C	 	is the percentage (if any) of Eligible Liabilities which that
Lender is required from time to time to maintain as interest bearing
Special Deposits with the Bank of England.
	 
	 	D	 	is the percentage rate per annum payable by the Bank of England
to the Agent on interest bearing Special Deposits.
	 
	 	E	 	is designed to compensate Lenders for amounts payable under the
Fees Rules and is calculated by the Agent as being the average of the
most recent rates of charge supplied by the Reference Banks to the
Agent pursuant to paragraph 7 below and expressed in pounds per
£1,000,000.

	5	 	For the purposes of this Schedule:

87

 

	 	(a)	 	"Eligible Liabilities” and “Special Deposits” have the meanings
given to them from time to time under or pursuant to the Bank of
England Act 1998 or (as may be appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in the
FSA Supervision Manual or such other law or regulation as may be in
force from time to time in respect of the payment of fees for the
acceptance of deposits;
	 
	 	(c)	 	"Fee Tariffs” means the fee tariffs specified in the Fees Rules
under activity group A.1 Deposit acceptors (ignoring any minimum fee
or zero rated fee required pursuant to the Fees Rules but taking into
account any applicable discount rate); and
	 
	 	(d)	 	"Tariff Base” has the meaning given to it in, and will be
calculated in accordance with, the Fees Rules.

	6	 	In application of the above formulae, A, B, C and D will be included in
the formulae as percentages (i.e. 5 per cent. will be included in the
formula as 5 and not as 0.05). A negative result obtained by subtracting
D from B shall be taken as zero. The resulting figures shall be rounded
to four decimal places.
	 
	7	 	If requested by the Agent, each Reference Bank shall, as soon as
practicable after publication by the Financial Services Authority, supply
to the Agent, the rate of charge payable by that Reference Bank to the
Financial Services Authority pursuant to the Fees Rules in respect of the
relevant financial year of the Financial Services Authority (calculated
for this purpose by that Reference Bank as being the average of the Fee
Tariffs applicable to that Reference Bank for that financial year) and
expressed in pounds per £1,000,000 of the Tariff Base of that Reference
Bank.
	 
	8	 	Each Lender shall supply any information required by the Agent for the
purpose of calculating its Additional Cost Rate. In particular, but
without limitation, each Lender shall supply the following information in
writing on or prior to the date on which it becomes a Lender:

	 	(a)	 	its jurisdiction of incorporation and the jurisdiction of its
Facility Office; and
	 
	 	(b)	 	any other information that the Agent may reasonably require for
such purpose.

	 	 	Each Lender shall promptly notify the Agent in writing of any change to the
information provided by it pursuant to this paragraph.
	 
	9	 	 The percentages or rates of charge of each Lender for the purpose of A
and C above and the rates of charge of each Reference Bank for the purpose
of E above shall be determined by the Agent based upon the information
supplied to it pursuant to paragraphs 7 and 8 above and on the assumption
that, unless a Lender notifies the Agent to the contrary, each Lender’s
obligations in relation to cash ratio deposits and Special Deposits are
the same as those of a typical bank from its jurisdiction of incorporation
with a Facility Office in the same jurisdiction as its Facility Office.
	 
	10	 	The Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any
Lender and shall be entitled to assume that the information provided by
any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is
true and correct in all respects.
	 
	11	 	The Agent shall distribute the additional amounts received as a result of
the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate
for each Lender based on the information provided by each Lender and each
Reference Bank pursuant to paragraphs 3, 7 and 8 above.
	 
	12	 	Any determination by the Agent pursuant to this schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
to a Lender shall, in the absence of manifest error, be conclusive and
binding on all Parties.

88

 

	13	 	The Agent may from time to time, after consultation with the Parent and
the Lenders, determine and notify to all Parties any amendments which are
required to be made to this schedule in order to comply with any change
in law, regulation or any requirements from time to time imposed by the
Bank of England, the Financial Services Authority or the European Central
Bank (or, in any case, any other authority which replaces all or any of
its functions) and any such determination shall, in the absence of
manifest error, be conclusive and binding on all Parties.

89

 

Schedule 5

Form of Transfer Certificate

To: Barclays Bank PLC as Agent

From: [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

Dated:

British Sky Broadcasting Group PLC

£600,000,000 Multi-currency revolving credit facility agreement

dated [•] 2003 (as amended from time to time)

(the “Facility Agreement”)

We refer to the Facility Agreement. Terms defined in the Facility Agreement
shall have the same meanings where used in this Transfer Certificate.

	1	 	We refer to clause 23.5 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing
Lender transferring to the New Lender by novation all or part of the
Existing Lender’s Commitment, rights and obligations referred to in
the Schedule in accordance with clause #23.5 (Procedure for transfer).
	 
	 	(b)	 	The proposed Transfer Date is
[            ].
	 
	 	(c)	 	The Facility Office and address, fax number and attention details
for notices of the New Lender for the purposes of clause 30.2
(Addresses) are set out in the Schedule.

	2	 	The New Lender expressly acknowledges the limitations on the Existing
Lender’s obligations set out in clause 23.4 (Limitation of responsibility
of Existing Lenders).
	 
	3	 	The New Lender confirms that the person beneficially entitled to interest
payable to that Lender in respect of an advance under a Finance Document
is a Qualifying Lender.
	 
	4	 	This Transfer Certificate may be executed in any number of counterparts
and this has the same effect as if the signatures on the counterparts were
on a single copy of this Transfer Certificate.
	 
	5	 	This Transfer Certificate is governed by English law.

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments,]

	 	 	 
	[Existing Lender]	 	
[New Lender]
	 	 	
 
	By:	 	
By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is
confirmed as [      ].

[Agent]

By:

90

 

Schedule 6

Form of Deed of Guarantor Accession

THIS DEED dated [•] is supplemental to an agreement (the “Agreement”) dated [•]
2003 (as amended from time to time) and made between British Sky Broadcasting
Group PLC as Borrower (1), certain Subsidiaries of British Sky Broadcasting
Group PLC whose names and registered offices or principal places of business
are set out in schedule 1 thereto as Guarantors (2), Barclays Capital, Deutsche
Bank AG London and Salomon Brothers International Limited as Mandated Lead
Arrangers (3), the Lenders whose names and addresses are set out in schedule 2
thereto as Lenders (4) and Barclays Bank PLC as Agent (5). Terms defined in
the Agreement shall bear the same meaning herein.

	1	 	[Subsidiary] hereby agrees to be an Acceding Guarantor pursuant to clause
19.17 (Acceding Guarantors) of the Agreement and accordingly undertakes
henceforth to perform all the obligations expressed to be undertaken under
the Agreement by a Guarantor in all respects as if it had been party to
the Agreement as an Original Guarantor.
	 
	2	 	[Subsidiary] hereby represents and warrants to the Lenders in respect of
itself in the terms of the Repeating Representations.
	 
	3	 	[Subsidiary’s] administrative details are as follows, for the purpose of clause 30 of the Agreement:

	 	 	 
	Address	 	
[•]
	 	 	
 
	Facsimile No	 	
[•]
	 	 	
 
	Attention	 	
[•]

	4	 	This Deed is governed by and shall be construed in accordance with English law.
	 
	5	 	[(To be included where the Subsidiary is a foreign company.] [Subsidiary]
agrees for the benefit of the Agent, the Mandated Lead Arrangers and the
Lenders that any legal action or proceedings arising out of or in
connection with this Agreement against it or any of its assets may be
brought in the English courts, irrevocably and unconditionally submits to
the jurisdiction of such courts and irrevocably designates, appoints and
empowers[            ] at present of[            ]
to receive for it and on its behalf, service of process
issued out of the English courts in any such legal action or proceedings.
The submission to such jurisdiction shall not (and shall not be construed
so as to) limit the right of the Agent, the Mandated Lead Arrangers and
the Lenders to take proceedings against[ Subsidiary] in the courts of any
other competent jurisdiction, nor shall the taking of proceedings in any
one or more jurisdictions preclude the taking of proceedings in any other
jurisdiction, whether concurrently or not.

IN WITNESS WHEREOF this Deed has been executed the day and year first before written.

	 	 	 	 	 
	EXECUTED AS A DEED	 	)
	BY [      ]	 	)
	 	 	
Director
	 	 	
Director/Secretary

91

 

Schedule 7

Documents and evidence to be delivered by Acceding Guarantors

	1 	 	 A copy, certified as true, complete and up-to-date by the company
secretary or equivalent officer of the relevant Subsidiary of the
Certificate of Incorporation and the Memorandum and Articles of
Association (or equivalent constitutional documents) of the relevant
Subsidiary.
	 
	2 	 	 A copy, certified as a true copy by the company secretary or equivalent
officer of the relevant Subsidiary, of resolutions of the Board of
Directors (or equivalent) of the relevant Subsidiary, evidencing approval
of this Agreement and the relevant Deed of Guarantor Accession and
authorising its appropriate officers to execute and deliver such Deed of
Guarantor Accession.
	 
	3 	 	 A copy, certified as a true copy by the company secretary or equivalent
officer of the relevant Subsidiary of all consents, authorisations,
licences and approvals required by the relevant Subsidiary to authorise,
or required by the relevant Subsidiary in connection with, the execution,
delivery, validity, enforceability and admissibility in evidence of this
Agreement and the relevant Deed of Guarantor Accession and the performance
by the relevant Subsidiary of its obligations under the relevant Deed of
Accession and this Agreement.
	 
	4 	 	 Specimen signatures, authenticated by the company secretary or equivalent
officer of the relevant Subsidiary of the persons authorised in the
resolutions of the Board of Directors or equivalent, referred to in
paragraph (b), above.
	 
	5 	 	 An opinion of legal advisers in the country of incorporation of the
relevant Subsidiary to the Agent, dated not more than fifteen Banking Days
prior to the date of the relevant Deed of Guarantor Accession, in a form
satisfactory to the Agent.
	 
	6 	 	 In the case of a Subsidiary not incorporated in England and Wales, a
copy, certified as a true copy by the company secretary or equivalent
officer of the relevant Subsidiary of a letter from the agent of the
relevant Subsidiary for receipt of service of process referred to in the
Deed of Guarantor Accession accepting its appointment.
	 
	7 	 	 The most up-to-date financial statements of the relevant Subsidiary.

92

 

Schedule 8

Form of Compliance Certificate

Barclays Bank PLC

[•]

	 	 	 	 	 
	Attention:	 	
[•]
	 	[Date]

Dear Sirs

British Sky Broadcasting Group PLC

£600,000,000 Multi-currency revolving credit facility

agreement dated [•] 2003 (as amended

from time to time)

(the “Facility Agreement”)

We refer to the Facility Agreement and deliver this certificate in respect of
the [Half Yearly Period][financial year] of the Borrower and its Subsidiaries
ended [•] pursuant to clause 21.3 (Financial Undertakings) of the Facility
Agreement. Terms defined in the Facility Agreement shall have the same meaning
when used in this Certificate.

We confirm that, based on the financial statements delivered to the Agent
pursuant to clause #21.1.4 (Financial statements) of the Facility Agreement in
respect of the[Half Yearly Period][financial year] of the Borrower and its
Subsidiaries ended [•]:

	1 	 	As at the last day of such [Half Yearly Period] [financial year] Net Debt
was [•], including all Hedging Arrangements as specified in the attached
schedule.
	 
	2 	 	EBITDA in respect of such [Half Yearly Period] [financial year] was [•].
EBITDA in respect of the previous Half Yearly Period was [•].
	 
	3 	 	Consolidated Interest Charges in respect of such [Half Yearly Period]
[financial year] were [•]. Consolidated Interest Charges in respect of
the previous Half Yearly Period were [•]*.

Based on the above and such statements, we confirm that on the last day of
such[Half Yearly Period][financial year]:

	1 	 	The ratio of Net Debt to EBITDA was [•].
	 
	2 	 	The ratio of EBITDA to Consolidated Interest Charges was [•].

Accordingly, we confirm that the Borrower is in compliance with its obligations
set out at clause #21.3 (Financial Undertakings) of the Facility Agreement.

We confirm that all calculations have been performed in accordance with the
Testing Accounting Principles.

For and on behalf of

[             ]

British Sky Broadcasting Group PLC

.............................................................

Chief Financial Officer/Director

	*	 	 In the case of a certificate in respect of a financial year.

93

 

Schedule 9

Timetables

	 	 	 	 	 	 	 
	 	 	Letters of	 	Loans in	 	Loans in Optional
	 	 	Credit	 	sterling	 	Currencies
	 	 	
	 	
	 	

	Borrower requests
an Optional
Currency in
accordance with
clause 5.3
(Conditions
relating to
Optional
Currencies)	 	 	 	 	 	4 pm, U-Day minus

4 Banking Days
	 	 	 	 	 	 	 
	Agent notifies the
Borrower if a
currency is
approved as an
Optional Currency
in accordance with
clause 5.3
(Conditions
relating to
Optional
Currencies)	 	 	 	 	 	2 pm, U-Day minus 3

Banking Days
	 	 	 	 	 	 	 
	Delivery of a duly
completed
Utilisation Request
(clause 6.1
(Delivery of a
Utilisation
Request))	 	
11 am, U-Day minus

5 Banking Days
	 	9 am, U-Day
	 	5 pm, U-Day minus 3

Banking Days
	 	 	 	 	 	 	 
	Agent notifies the
Lenders of the
details of the
Utilisation in
accordance with
clause 6.4
(Lenders’
participation)	 	 	 	10 am, U-Day
	 	9.30 am, U-Day
minus 2 Banking
Days
	 	 	 	 	 	 	 
	Delivery of a
completed Renewal
Request (clause
6.5.8 (Renewal of
Letter of Credit))	 	
5 Banking Days
prior to the
relevant Expiry
Date	 	 	 	 
	 	 	 	 	 	 	 
	Agent receives a
notification from a
Lender under clause
7.2
(Unavailability of
a currency)	 	 	 	 	 	10 am, U-Day minus

2 Banking Days
	 	 	 	 	 	 	 
	Agent gives notice
in accordance with
clause 7.2
(Unavailability of
a currency)	 	 	 	 	 	10.30 am, U-Day
minus 2 Banking
Days

“U-Day” means Utilisation Date

The timetable for any proposed Utilisation by way of Letter of Credit shall be
determined on a case-by-case basis.

	 	 	 	 	 	 	 
	LIBOR or EURIBOR is fixed	 	
Quotation Day as of
11:00 a.m. London
time in respect of
LIBOR and as of
11:00 am (Brussels
time) in respect of
EURIBOR
	 	Quotation Day as of
11:00 a.m
	 	Quotation Day as of
11:00 a.m.

94

 

Schedule 10

Form of Letter of Credit

To: [Beneficiary]

[Date]

Dear Sirs,

[Letter of Credit]

	1 	 	The banks listed in paragraph 3 below (the “Lenders”) understand that:
	 
	1.1	 	[      ] (the “Beneficiary”) has entered into an agreement on
[      ] (the “Agreement”) with [            ]
(the “Company”) in connection with [transaction
description]; and
	 
	1.2	 	the Company has agreed to provide to the Beneficiary in connection with
the Agreement a [guarantee (this “Guarantee”)] for an aggregate amount not
exceeding [      ] ([Currency] [      ])
(the “Guaranteed Amount”).
	 
	2 	 	Each Lender irrevocably (subject to the terms hereof) guarantees to the
Beneficiary that, if the Company has failed to pay to the Beneficiary any
amount payable under the Agreement for a period of 10 days after such
amount becomes due, then, within ten days of receipt of a written claim
(the “Claim”) from the Beneficiary in the form set out in Appendix 1, that
Lender shall, subject to such Lender’s maximum liability specified in
paragraph 3 below, pay its percentage of any sum demanded in that Claim in
accordance with the following provisions of this Guarantee and confirmed
in the Claim to be due and payable under the Agreement into the following
account, such payment being in satisfaction of the Claim of the
Beneficiary:

	 	 	 	[      
	 
	 	 	 	                                                ]
	 
	 	 	 	Account ref:                      ]
	 
	 	 	 	Account no: [              ]
	 
	 	 	 	[Sort code: [            ]

	3 	 	 The maximum aggregate liability of the Lenders under this Guarantee shall
not exceed the Guaranteed Amount. The liability of each of the Lenders
under this Guarantee shall not exceed the percentage set opposite its name
below of the Guaranteed Amount:

	 	 	 
	Name	 	Percentage
	1	 	
[            ]
	2	 	
[            ]
	3	 	
[            ]

95

 

	 	 	 
	4	 	
[            ]
	[etc.]	 	 

	4 	 	The obligations of each Lender under this Guarantee are several. Failure
of a Lender to carry out its obligations under this Guarantee shall not
relieve any other Lender of its obligations under this Guarantee. No
Lender shall be responsible for the obligations of any other Lender under
this Guarantee.
	 
	5 	 	A Claim under this Guarantee by the Beneficiary must be received in
writing by Barclays Bank PLC as agent for the Lenders (in this capacity
the “Agent”) at its office at [address of Agent] marked for the attention
of [contact name], on any date on or after [ ] but not later than [10
Business Days before the Termination Date of the £600m RCF] (the “Expiry
Date”) accompanied by the signed statement of the Beneficiary that the
Company has failed to fulfil its payment obligations under the Agreement
in respect of a specified amount for a period of 10 days as set out in the
Claim. Without prejudice to any rights the Company may have directly
against the Beneficiary or any disputes raised by the Company, any Claim
shall be accepted under this Guarantee as conclusive evidence that the
amount claimed is due to the Beneficiary.
	 
	6 	 	 A Claim under this Guarantee shall be made in writing (which shall not
include facsimile, telex, cable or similar forms of communication) and
shall be effective upon actual receipt at the office of the Agent referred
to in paragraph 5 above. No Claim may be validly made unless it is
accompanied by a certified copy of a demand made on the Company in respect
of the sum demanded in that Claim.
	 
	7 	 	A Claim must bear the confirmation of the [bankers] of the Beneficiary
that the signatories are authorised to sign that Claim.
	 
	8 	 	 The liability of a Lender under this Guarantee shall be discharged in
full prior to the Expiry Date on the date (the “Discharge Date”) when
either (i) the Beneficiary delivers a notice to the Agent confirming that
such Lender is discharged from all liabilities under this Guarantee,
substantially in the form set out in Appendix 2 or (ii) such Lender pays
the Beneficiary an amount equal to its then maximum liability under this
Guarantee.
	 
	9 	 	 This Guarantee shall remain valid until the Expiry Date or, if earlier,
the Discharge Date, after which it shall become null and void whether
returned to the Agent for cancellation or not and no Claim may be made on
the Lenders. A Claim received after the Expiry Date or, if earlier, the
Discharge Date shall be ineffective. This Guarantee shall be returned by
the Beneficiary to the Agent on the Expiry Date or, if earlier, the
Discharge Date.
	 
	10 	 	 
	 
	10.1	 	 This Guarantee and the rights under it are personal to the Beneficiary
and are not transferable or assignable.
	 
	10.2	 	A Lender shall not be entitled to transfer any part of its obligations
under this Guarantee unless and to the extent that it procures that a
transferee (acceptable to the Beneficiary, acting reasonably) issues a
guarantee on substantially the same terms as this Guarantee in favour of
the Beneficiary in respect of the obligations to be transferred to that
Lender, whereupon the maximum liability of that Lender under this
Guarantee shall be reduced accordingly. Following any such transfer the
Beneficiary and the Lenders shall endorse this Guarantee with a memorandum
recording the reduction in the Lender’s maximum liability hereunder.
	 
	11	 	Any payment under this Guarantee will satisfy the obligations of the
Company pro tanto. Upon making any payment under this Guarantee, the
Lenders shall be subrogated to the rights of the Beneficiary in respect of
the amount paid.
	 
	12	 	 This Guarantee shall be governed by and construed in accordance with the
laws of England and shall be subject to the exclusive jurisdiction of the
English courts. Only the courts of England and not those of any other
jurisdiction shall have jurisdiction in any proceedings the Beneficiary

96

 

	 	 	may initiate against the Agent or the Lenders arising out of or in
connection with this letter where indicated below.

Please confirm your agreement to the terms of this Guarantee by counter-signing
this letter where indicated below.

Yours faithfully

.....................................................

For and on behalf of

[The Lenders]

We agree to the above

.....................................................

For and on behalf of

[Beneficiary]

97

 

APPENDIX 1

FORM OF CLAIM

	 	 	 
	To:	 	
Barclays Bank PLC
	 	 	
[Address
	 	 	
Contact]

[Date]

Dear Sirs,

	1 	 	 We refer to the guarantee dated [      ] (the
“Guarantee”) executed by the Agent on behalf of the Lenders in our favour
(copy attached). This is a Claim under the Guarantee.
	 
	2 	 	 We claim [      ] under the Guarantee. We confirm that
[      ] has failed to fulfil its payments obligations
under the Agreement in the same amount for a period of 10 days after the
due date. We attach a certified copy of a demand made on [      ].
	 
	3 	 	 Terms defined in the Guarantee have the same meaning in this letter. This
Claim shall be governed by and construed in accordance with English law.

Yours faithfully,

............................................

Name:

Position:

duly authorised, for and on behalf of

[Beneficiary]

98

 

APPENDIX 2

FORM OF DISCHARGE

	 	 	 
	To:	 	
Barclays Bank PLC
	 	 	
[Address
	 	 	
Contact]

		
	 	     [Date]

Dear Sirs,

	1 	 	 We refer to the guarantee dated [      ] (the
“Guarantee”) executed by you as Agent for the Lenders in our favour.
	 
	2	 	We confirm that the [Lender is] [Lenders are] irrevocably discharged from
all liabilities under the Guarantee.
	 
	3 	 	 [We hereby return the Guarantee for retention by the Agent.]

This Discharge shall be governed by and construed in accordance with English
law.

Yours faithfully,

.......................................................

Name:

Position:

duly authorised, for and on behalf of

[Beneficiary]

99

 

	 
	Execution Pages
	 
	The Borrower

	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BRITISH SKY BROADCASTING
	 	 	)	 	 	 
	
GROUP PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	M.D. Stewart
	 	 	 	 	 	 	 
	
The Guarantors	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BRITISH SKY BROADCASTING
	 	 	)	 	 	 
	
LIMITED
	 	 	)	 	 	 
	
by
	 	 	)	 	 	M.D. Stewart
	 	 	 	 	 	 	 
	
SKY SUBSCRIBERS SERVICES
	 	 	)	 	 	 
	
LIMITED
	 	 	)	 	 	 
	 	 	 	)	 	 	 
	
by:
	 	 	)	 	 	M.D. Stewart
	 	 	 	 	 	 	 
	
The Mandated Lead Arrangers	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BARCLAYS CAPITAL
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
CITIBANK, N.A
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Llewelyn-Jones
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
DEUTSCHE BANK AG LONDON
	 	 	)	 	 	Alison Howe
	
by:
	 	 	)	 	 	Richard Munn

100

 

	 	 	 	 	 	 	 
	
The Lenders	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BARCLAYS BANK PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
CITIBANK, N.A
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Llewelyn-Jones
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
DEUTSCHE BANK AG LONDON
	 	 	)	 	 	Alison Howe
	
by:
	 	 	)	 	 	Richard Munn
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
ALLIED IRISH BANKS, P.L.C
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Barry
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BAYERISCHE LANDESBANK
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Brian Clark
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
COMMERZBANK AKTIENGESELLSCHAFT,
	 	 	)	 	 	 
	
LONDON BRANCH
	 	 	)	 	 	Kevin Buck
	
by:
	 	 	)	 	 	Kenny Mackay
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
CREDIT LYONNAIS
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Katy Brown
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
HSBC BANK PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Stephen Brade
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
ING BANK
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
JPMORGAN CHASE BANK
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	John Blackborough
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
LLOYDS TSB BANK PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Colin Baker

101

 

	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
SOCIETE GENERALE
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Kevin Harbour
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
THE ROYAL BANK OF SCOTLAND PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Eddie Dec
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
WESTLB AG, LONDON BRANCH
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Katrina Weston
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BNP PARIBAS LONDON BRANCH
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
CREDIT SUISSE FIRST BOSTON
	 	 	)	 	 	 
	
LONDON BRANCH
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
SCOTIABANK EUROPE PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
THE BANK OF NEW YORK
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Jason Garwood
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
THE GOVERNOR AND COMPANY OF THE
	 	 	)	 	 	 
	
BANK OF IRELAND
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner
	 	 	 	 	 	 	 
	
The Agent	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
SIGNED for and on behalf of
	 	 	)	 	 	 
	
BARCLAYS BANK PLC
	 	 	)	 	 	 
	
by:
	 	 	)	 	 	Michael Joyner

102Prepared by R.R. Donnelley Financial -- First Supplemental Indenture

 EXHIBIT 4.1(b) 
  
 THIS FIRST SUPPLEMENTAL INDENTURE, dated as of July 23, 2003 (this “First Supplemental Indenture”), is by
and among CB Richard Ellis Services, Inc., a Delaware corporation (“CB Richard Ellis Services”), CBRE Holding, Inc., a Delaware corporation (“Parent”), each of the parties identified as a Subsidiary Guarantor on the
signature pages hereto (each, a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors”) and U.S. Bank National Association, as trustee (the “Trustee”). 
  
 WITNESSETH 
  
 WHEREAS, CBRE Escrow, Inc. (the “Issuer”) and the Trustee are parties to an indenture dated as of
May 22, 2003 (the “Indenture”), providing for the issuance of the Issuer’s 93⁄4% Senior Notes due May 15, 2010 (the “Notes”); 
  
 WHEREAS, the Issuer has merged with and into CB Richard Ellis Services (the “Escrow Merger”); 

 
 WHEREAS, Apple Acquisition Corp. has merged with and into Insignia
Financial Group, Inc. (the “Merger”); 
  
 WHEREAS, as a result of the Escrow Merger, CB Richard Ellis Services is assuming, by and under this First Supplemental Indenture, the Issuer’s obligations for the due and punctual payment of the principal of, premium, if any, and
interest on all the Notes and the performance and observance of each covenant of the Indenture on the part of the Issuer to be performed or observed; 
  
 WHEREAS, pursuant to Section 4.13 of the Indenture, on the date of the Merger, Parent shall, and CB Richard Ellis Services shall cause the Subsidiary
Guarantors to, execute and deliver to the Trustee a supplemental indenture pursuant to which Parent and such Subsidiary Guarantors shall unconditionally and irrevocably guarantee CB Richard Ellis Services’ obligations with respect to the Notes
on the terms set forth in the Indenture; and 
  
 WHEREAS, pursuant
to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this First Supplemental Indenture. 
  
 NOW, THEREFORE, for and in consideration of the foregoing premises, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Notes, as follows: 
  
 1. Capitalized Terms.
Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
  
 2. Assumption by CB Richard Ellis Services. CB Richard Ellis Services hereby assumes the Issuer’s obligations for the due and punctual payment
of the principal of, premium, if any, and interest on all outstanding Notes issued pursuant to the Indenture and the performance and observance of each other obligation and covenant set forth in the Indenture to be performed or observed on the part
of the Issuer. CB Richard Ellis Services is hereby substituted for, and may exercise every right and power of, the Issuer under the Indenture with 

  

 1 

 
the same effect as if CB Richard Ellis Services had been named as the Issuer in the Indenture, and CB Richard Ellis Services is a successor corporation under
the Indenture. 
  
 3. Notation on Notes. Notes
authenticated and delivered after the date hereof may bear the following notation, which may be stamped or imprinted thereon: 
  
 “In connection with the merger of CBRE Escrow, Inc. (the “Issuer”) with and into CB Richard Ellis Services, Inc.
(“CB Richard Ellis Services”) and pursuant to the First Supplemental Indenture dated as of July 23, 2003, CB Richard Ellis Services has assumed the Issuer’s obligations for the due and punctual payment of the principal of,
premium, if any, and interest on this Note and the performance of each other obligation and covenant set forth in the Indenture to be performed or observed on the part of the Issuer.” 
  
 4. Agreements to Become Guarantors. Parent and each of the Subsidiary
Guarantors hereby unconditionally and irrevocably guarantee CB Richard Ellis Services’ obligations under the Notes and the Indenture on the terms and subject to the conditions set forth in Article 10 of the Indenture and agree to be bound by
all other provisions of the Indenture and the Notes applicable to a Guarantor therein. 
  
 5. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. 
  
 6. Notices. For purposes of Section 11.02 of the Indenture, the
address for notices to CB Richard Ellis Services, Parent and each of the Subsidiary Guarantors shall be: 
  
 c/o CB Richard Ellis Services, Inc. 
 355
South Grand Avenue 
 Suite 3100 
 Los Angeles, CA 90071 
 Attention: Kenneth J. Kay 
  
 7. Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the
State of New York. 
  
 8. Counterparts. The parties may
sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together shall represent the same agreement. 
  
 9. Effect of Headings. The section headings herein are for convenience only and shall not affect the construction
hereof. 
  
 10. The Trustee. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or sufficiency of this First Supplemental Indenture or 

  

 2 

 for or in respect of the recitals contained herein, all of which recitals are made solely by CB Richard Ellis Services,
Parent and the Subsidiary Guarantors. 
  
 IN WITNESS WHEREOF, the
parties hereto have caused this First Supplemental Indenture to be duly executed, all as of the date first above written. 
  

	CB RICHARD ELLIS SERVICES, INC.
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	CBRE HOLDING, INC.
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	BAKER COMMERCIAL REALTY, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  

 3 

	BONUTTO-HOFER INVESTMENTS, as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary
	
	CB RICHARD ELLIS, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary
	
	CB RICHARD ELLIS CORPORATE FACILITIES MANAGEMENT, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary

  

 4 

	CB RICHARD ELLIS INVESTORS, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Assistant Secretary
	
	CB RICHARD ELLIS INVESTORS, L.L.C., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary
	
	CB RICHARD ELLIS OF CALIFORNIA, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Secretary
	
	CBRE CONSULTING, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary

  

 5 

	CBRE HR, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	 Senior Vice President and Secretary

	
	CBRE-PROFI ACQUISITION CORP., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary
	
	CBRE/LJM MORTGAGE COMPANY, L.L.C., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary
	
	CBRE/LJM-NEVADA, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Secretary

  

 6 

	CBREI FUNDING, L.L.C., as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis Investors, L.L.C., its sole member
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary
	
	CBREI MANAGER, L.L.C., as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis Investors, L.L.C., its sole member
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary
	
	EDWARD S. GORDON MANAGEMENT CORPORATION, as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary

  

 7 

	GLOBAL INNOVATION ADVISOR, L.L.C., as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis Investors, L.L.C., its member
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary
	
	HOLDPAR A, as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis, Inc., its majority interest holder
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary
	
	HOLDPAR B, as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis, Inc., its majority interest holder
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary

  

 8 

	IBT VI, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary
	
	IBTHAI, INC., as a Subsidiary Guarantor
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary
	
	I/ESG OCTANE HOLDINGS, LLC as a subsidiary Guarantor
		
	By:	 	Insignia/ESG, Inc., its sole member
		
	By:	 	/S/    ELLIS D. REITER,
JR.        
	 	 	

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Senior Vice President and Secretary

  

 9 

	IIII-BSI HOLDINGS, LLC, as a subsidiary Guarantor
		
	By:	 	Insignia/ESG, Inc., its managing member
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	IIII-SSI HOLDINGS, LLC, as a Subsidiary Guarantor
		
	By:	 	Insignia/ESG, Inc., its managing member
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA/ESG, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  
  

 10 

	INSIGNIA/ESG CAPITAL CORPORATION, as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA/ESG NORTHEAST, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA CAPITAL INVESTMENTS, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA FINANCIAL GROUP, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

 11 

	INSIGNIA FINANCIAL SERVICES, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA INVESTMENT MANAGEMENT, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA IP INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

 12 

	INSIGNIA ML PROPERTIES, LLC, as a Subsidiary Guarantor
		
	By:	 	Insignia/ESG, Inc., its sole member
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	INSIGNIA RO, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Senior
Vice President and Secretary

  
  

	KOLL CAPITAL MARKETS GROUP, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title:
Executive Vice President and Secretary

  
  

 13 

	KOLL INVESTMENT MANAGEMENT, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Vice
President and Secretary

  
  

	KOLL PARTNERSHIPS I, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title:
Executive Vice President and Secretary

  
  

	KOLL PARTNERSHIPS II, INC., as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title:
Executive Vice President and Secretary

  
  

	L.J. MELODY & COMPANY, as a Subsidiary Guarantor
		
	By:	 	/s/    ELLIS D. REITER, JR.
	 	

	 	 	 Name: Ellis D. Reiter, Jr.
 Title: Vice
President and Assistant Secretary

  
  

 14 

	L.J. MELODY & COMPANY OF TEXAS, L.P., as a Subsidiary Guarantor
		
	By:	 	 CBRE/LJM Mortgage Company, L.L.C., its
 general partner

		
	By:	 	 /s/    ELLIS D. REITER, JR.
        

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary

  

	 LJMGP, LLC, as a Subsidiary Guarantor

		
	By:	 	 /s/    ELLIS D. REITER, JR.
        

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Assistant Secretary

  

	 SOL L. RABIN, INC., as a Subsidiary Guarantor

		
	By:	 	 /s/    ELLIS D. REITER,
JR.        

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Secretary

  

	 VINCENT F. MARTIN, JR., INC., as a Subsidiary Guarantor

		
	By:	 	 /s/    ELLIS D. REITER,
JR.        

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Vice President and Secretary

  
  

 15 

	WESTMARK REAL ESTATE ACQUISITION PARTNERSHIP, L.P., as a Subsidiary Guarantor
		
	By:	 	CB Richard Ellis, Inc., its general partner
		
	By:	 	 /s/    ELLIS D. REITER,
JR.        

	 	 	Name:	 	Ellis D. Reiter, Jr.
	 	 	Title:	 	Executive Vice President and Secretary

  

	 U.S. BANK NATIONAL ASSOCIATION, as Trustee

		
	By:	 	 /s/    PAULA M.
OSWALD        

	 	 	Name:	 	Paula M. Oswald
	 	 	Title:	 	Vice President

  
  

 16

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