Document:

trilinc-ex101_8.htm

 

Exhibit 10.1

 

DATE  3  JULY  2017

 

 

 

( 1 )TRILINC  GLOBAL  IMPACT  FUND  CAYMAN ,  LTD .

as  the  Borrower

	
( 2 )
	
MICRO ,  SMALL  &  MEDIUM  ENTERPRISES  BONDS S . A . , ACTING  ON  BEHALF  OF  ITS  COMPARTMENT  SERIES  88

as  Lender

( 3 )SYMBIOTICS  S A  

as  Servicer

 

FACILITY  AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LON/MSME/S88/TLFA/Execution Copy

 

 

		
	
CONTENTS

	
    Clause 
	
Page

	
1.        DEFINITIONS AND INTERPRETATION 
	
1

	
2.       THE FACILITY
	
9

	
3.       PURPOSE 
	
10

	
4.       CONDITIONS OF UTILISATION 
	
10

	
5.       UTILISATION 
	
10

	
6.       REPAYMENT
	
11

	
7.       PREPAYMENT AND CANCELLATION 
	
11

	
8.       INTEREST
	
13

	
9.       INTEREST PERIODS 
	
13

	
10.     CHANGES TO THE CALCULATION OF INTEREST 
	
14

	
11.     FEES 
	
14

	
12.     TAX GROSS UP AND INDEMNITIES 
	
14

	
13.     OTHER INDEMNITIES 
	
19

	
14.     MITIGATION BY THE LENDER
	
20

	
15.     COSTS AND EXPENSES 
	
20

	
16.     REPRESENTATIONS 
	
21

	
17.     INFORMATION UNDERTAKINGS 
	
24

	
18.     FINANCIAL COVENANTS 
	
27

	
19.     GENERAL UNDERTAKINGS 
	
27

	
20.     EVENTS OF DEFAULT 
	
29

	
21.     CHANGES TO THE LENDERS 
	
31

	
22.     CONDUCT OF BUSINESS BY THE LENDER 
	
32

	
23.     LIMITED RECOURSE 
	
32

	
24.     PAYMENT MECHANICS 
	
33

	
25.     SET-OFF 
	
34

	
26.     NOTICES 
	
35

	
27.     CALCULATIONS AND CERTIFICATES .
	
36

	
28.     PARTIAL INVALIDITY 
	
37

	
29.     REMEDIES AND WAIVERS 
	
37

	
30.     AMENDMENTS AND WAIVERS
	
37

	
31.     COUNTERPARTS 
	
37

	
32.     GOVERNING LAW 
	
37

	
33.     ENFORCEMENT.
	
37

	
34.     ARBITRATION
	
38

	
SCHEDULE 1 CONDITIONS PRECEDENT TO INITIAL UTILISATION 
	
39

	
SCHEDULE 2 FORM OF UTLISATION REQUEST 
	
41

	
SCHEDULE 3 FORM OF INCREASE REQUEST 
	
42

	
SCHEDULE 4 FORM OF COMPLIANCE CERTIFICATE 
	
43

	
SCHEDULE 5 TIMETABLES 
	
44

	
SCHEDULE 6
	
45

	
SIGNATURE PAGE 
	
46

    

 

LON/MSME/S88/TLFA/EC

 

THIS AGREEMENT is dated 3 July 2017 and made between: 

	
(1)
	
TRILINC GLOBAL IMPACT FUND CAYMAN, LTD. an exempted company incorporated under the laws of the Cayman Islands with company number 310829 and having its registered office at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, as borrower (the "Borrower");  

	
(2)
	
MICRO, SMALL & MEDIUM ENTERPRISES BONDS S.A., a public limited company (“société anonyme”) incorporated under the laws of the Grand Duchy of Luxembourg having its registered office at 20, rue de la Poste, L-2346 Luxembourg, 

Grand Duchy of Luxembourg as a securitisation company subject to the Securitisation Law, registered with the Luxembourg Trade and Companies Register under number B 156914, acting on behalf of its compartment "Series 88" as lender (or any assignees  or successors thereof) (the "Lender"); and 

	
(3)
	
SYMBIOTICS SA, a public limited company (“société anonyme”) incorporated under the laws of Switzerland having its registered office at 31 Rue de la Synagogue, CH-1204 Geneva, Switzerland, as servicer (the "Servicer"). 

IT IS AGREED as follows: 

1.DEFINITIONS AND INTERPRETATION 

1.1 Definitions 

In this Agreement: 

"Accounting Principles" means generally accepted accounting principles in the United States.  

"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. 

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

"Availability Date" means:  

(a)7 July 2017 (the "Initial Availability Date"); or 

(b)the date set out in an Increase Request and delivered to the Lender pursuant to Clause 2.2 (Increase), or such later date as may be agreed in writing between the Lender and the Borrower. 

"Available Commitment" means the Lender's Total Commitment minus: 

	
 
	
(a)
	
the amount of its participation in any outstanding Loans; and 

	
 
	
(b)
	
in relation to any proposed Utilisation, the amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date. 

"Base Currency" means US dollars. 

“Borrower Subsidiary” means (a) any of  

TriLinc Global Impact Fund – Africa, Ltd. 

 

LON/MSME/S88/TLFA/EC 

 

TriLinc Global Impact Fund – African Trade Finance, Ltd. 

TriLinc Global Impact Fund – African Trade Finance II, Ltd. 

TriLinc Global Impact Fund – Asia, Ltd. 

TriLinc Global Impact Fund – Asia II, Ltd. 

TriLinc Global Impact Fund – Asia III, Ltd. 

TriLinc Global Impact Fund – Latin America, Ltd. 

TriLinc Global Impact Fund – Latin America II, Ltd. 

TriLinc Global Impact Fund – Latin America III, Ltd. 

TriLinc Global Impact Fund – Trade Finance, Ltd. 

or (b) any other fully owned Subsidiary of the Borrower notified to the Lender.  

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for business in New York, United States of America; Los Angeles, United States of America; London, United Kingdom; George Town, Cayman Islands and Luxembourg, Grand Duchy of Luxembourg. 

"Change of Control" means the Fund ceases directly or indirectly to have the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to: 

	
 
	
(i)
	
cast, or control the casting of, more than 67 per cent. of the maximum number of votes that might be cast at a general meeting of the Borrower;  

	
 
	
(ii)
	
appoint or remove all, or the majority, of the directors or other equivalent officers of the Borrower; or 

	
 
	
(iii)
	
give directions with respect to the operating and financial policies of the Borrower with which the directors or other equivalent officers of the Borrower are obliged to comply; or 

	
 
	
(iv)
	
hold beneficially more than 67 per cent. of the issued share capital of the Borrower (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital) 

"Code" means the US Internal Revenue Code of 1986. 

"Collection Account" means the account opened and maintained by the Lender in the books of BNP Paribas Securities Services Luxembourg Branch with the account details specified in Schedule 6 (Account).  

"Commitment" means US$10,500,000, to the extent not cancelled, reduced or transferred by it under this Agreement.  

"Common Reporting Standard" means: 

(a)the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information based on the standard for automatic exchange of financial account information developed by the Organisation for Economic CoOperation and Development; and 

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LON/MSME/S88/TLFA/EC 

 

(b)any law or regulation of any jurisdiction which facilitates the implementation of the agreement referred to in paragraph (a) above. 

"CRS Deduction" means a deduction or withholding from a payment under a Finance Document on account of the Common Reporting Standard, provided that: 

	
 
	
(a)
	
the deduction or withholding is required by law; 

	
 
	
(b)
	
the legal requirement to make such a deduction or withholding takes effect or comes into force after the date of this Agreement; and 

	
 
	
(c)
	
the requirement to make a deduction or withholding results from the failure or negligence of a Party to comply with its obligations to provide any forms, documentation or other information reasonably requested by another Party pursuant to Clause 12.8(a)(iii). 

"Compliance Certificate" means a certificate substantially in the form set out in Schedule 4 (Form of Compliance Certificate).  

"Default" means an Event of Default or any event or circumstance specified in Clause 20 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default. 

"Designated Website" means the Servicer’s online reporting system. 

"Disruption Event" means either or both of: 

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

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

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

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

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

"Eligible Financing" means the investment by a Borrower Subsidiary in small and medium enterprises in developing economies in accordance with the Investment Policy. 

"Event of Default" means any event or circumstance specified as such in 

Clause 20 (Events of Default). 

"Facility" means the secured term loan facility made available under this Agreement as described in Clause 2 (The Facility) Facility. 

"FATCA" means: 

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LON/MSME/S88/TLFA/EC 

 

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

	
 
	
(b)
	
any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or 

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

"FATCA Application Date" means: 

	
 
	
(a)
	
in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;  

	
 
	
(b)
	
in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources within the US), 1 January 2019; or 

	
 
	
(c)
	
in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019, 

or, in each case, such other date from which such payment may become subject to a deduction or, withholding required by FATCA as a result of any change in FATCA after the date of this Agreement. 

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

"FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction. 

"Finance Document" means this Agreement, the Shareholder’s Security Agreements and any other document designated as such by the Lender and the Borrower. 

"Financial Indebtedness" means any indebtedness for or in respect of: 

	
 
	
(a)
	
moneys borrowed; 

	
 
	
(b)
	
any amounts raised through client accounts or deposits; 

	
 
	
(c)
	
any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent, including subordinated debt; 

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

	
 
	
(e)
	
the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease; 

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

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LON/MSME/S88/TLFA/EC 

 

	
 
	
(g)
	
any amount raised under any other transaction (including any forward sale or purchase agreement) of a type not referred to in any other paragraph of this definition having the commercial effect of a borrowing; 

	
 
	
(h)
	
any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount) shall be taken into account); 

	
 
	
(i)
	
any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and 

	
 
	
(j)
	
the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above. 

"Fund" means TriLinc Global Impact Fund, LLC, a Delaware limited liability company. 

"Holding Company" means, in relation to a person, any other person in respect of which it is a Subsidiary. 

"Increased Facility Availability Date" has the meaning given to this term in the Increase Request. 

“Increase Request” has the meaning given to it in Clause 2.2 (Increase). 

"Interest Payment Date" means 15 January, 15 April, 15 July and 15 October in any year, and the first Interest Payment Date shall fall on 15 October 2017. 

"Interest Period" means, in relation to a Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest). 

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

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

	
 
	
(b)
	
the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan, each as of the Specified Time on a Quotation Day for the currency of that Loan. "Investment Policy" means the investment policy of the Fund in place on the date of this Agreement. 

"Lender" means: 

	
 
	
(a)
	
the Lender; and 

	
 
	
(b)
	
any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 21 (Changes to the Lenders), 

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

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LON/MSME/S88/TLFA/EC 

 

"LIBOR" means the applicable Screen Rate as of the Specified Time on a Quotation Day for the currency of that Loan and for a period equal in length to the Interest Period of that Loan and if that rate is less than zero, LIBOR shall be deemed to be zero. 

"Loan" means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan. 

"Margin" means 4.65% per annum. 

"Material Adverse Effect" means any circumstance or event which has a material adverse effect on:  

	
 
	
(a)
	
the validity, legality or enforceability of this Agreement; or 

	
 
	
(b)
	
the material rights and remedies of the Lenders granted under this Agreement, subject to the reservations and qualifications contained herein; or  

	
 
	
(c)
	
the business, properties, assets, financial condition or results of operations of the 

Borrower and the Borrower Subsidiaries, taken as a whole; or 

	
 
	
(d)
	
the ability of the Borrower to perform its obligations under this Agreement.   

"Maturity Date" means 7 July 2020. 

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

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

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

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

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

"New Lender" has the meaning given to that term in Clause 21 (Changes to the Lenders). 

"Other Connection Taxes" means, with respect to any Lender or Servicer, Taxes imposed as a result of a present or former connection between such person and the jurisdiction imposing such Tax. 

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

"Party" means a party to this Agreement. 

"Qualifying Lender" has the meaning given to it in Clause 12 (Tax Gross-Up and Indemnities). 

- 6 - 

LON/MSME/S88/TLFA/EC 

 

"Quotation Day" means, in relation to any period for which an interest rate is to be determined, two Business Days before the first day of that period, or, (if the currency is euro) two TARGET Days before the first day of that period, unless market practice differs in the Relevant Market, in which case the Quotation Day will be determined by the Lender in accordance with market practice in the Relevant Market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days).  "Relevant Market" means the London interbank market.  

"Repeating Representations" means each of the representations set out in Clause 16.1 (Status) to Clause 16.6 (Governing law and enforcement), Clause 16.9 (No default), Clause 16.17 (No breach of laws), Clause 16.13 (Pari passu ranking) to Clause 16.15 (Assets) and Clause 16.19 (Repetition). 

"Representative" means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian. 

"Screen Rate" means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages US0003M INDEX HP of the Bloomberg screen (or any replacement Bloomberg screen which displays that rate). 

"Securitisation Law" means the Luxembourg Law of 22 March 2004 on securitisation, as amended from time to time. 

"Security" means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect. 

"Shareholder’s Security Agreements” means a Security over the shares of a Borrower Subsidiary entered into or to be entered in to by the Borrower in favour of the Lender in an agreed form". 

"Specified Time" means a day or time determined in accordance with 5 (Timetables). 

"Subsidiary" means, with respect to any Party, a corporation, company, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Party. 

"TARGET2" means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform and which was launched on 19 November 2007. 

"TARGET Day" means any day on which TARGET2 is open for the settlement of payments in euro. 

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

"Total Commitment" means the aggregate of the Facility being US$10,500,000 at the date of this Agreement and which may be increased by the Lender pursuant to Clause 2.2 (Increase). 

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LON/MSME/S88/TLFA/EC 

 

"Unpaid Sum" means any sum due and payable but unpaid by the Borrower under the Finance Documents. 

"US" means the United States of America. 

"Utilisation" means a utilisation of a Facility. 

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

"Utilisation Fee" means the fee payable by the Borrower to the Lender in relation to a Utilisation pursuant to Clause 11.1 (Utilisation fee). 

"Utilisation Request" means a notice substantially in the form set out in Part I of Schedule 2 (Form of Utilisation Request). 

"VAT" means: 

	
 
	
(a)
	
any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and 

	
 
	
(b)
	
any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere. 

1.2 Construction 

(a)Unless a contrary indication appears, any reference in this Agreement to: 

	
 
	
(i)
	
the "Lender", the "Borrower", the "Servicer" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents; 

	
 
	
(ii)
	
"assets" includes present and future properties, revenues and rights of every description; 

	
 
	
(iii)
	
a "Finance Document" or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated; 

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

	
 
	
(v)
	
a "person" includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality); 

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

	
 
	
(vii)
	
a provision of law is a reference to that provision as amended or reenacted; and 

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LON/MSME/S88/TLFA/EC 

 

	
 
	
(viii)
	
a time of day is a reference to London time. 

(b)The determination of the extent to which a rate is "for a period equal in length" to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this Agreement. (c) Section, Clause and Schedule headings are for ease of reference only. 

	
 
	
(d)
	
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. 

	
 
	
(e)
	
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 remedied or waived. 

1.3Currency symbols and definitions 

"$", "US$" and "US dollars" denote the lawful currency of the United States. 

1.4Third party rights 

	
 
	
(a)
	
Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the "Third Parties Act") to enforce or to enjoy the benefit of any term of this Agreement. 

	
 
	
(b)
	
Notwithstanding any term of any Finance Document, the consent of any Person who is not a Party is not required to rescind or vary this Agreement at any time. 

2.THE FACILITY 

2.1 The Facility 

Subject to the terms of this Agreement, the Lender makes available to the Borrower the Facility in an aggregate amount equal to the Total Commitment.  

2.2 Increase 

	
 
	
(a)
	
The Borrower may by giving prior notice to the Lender by no later than the date falling 10 Business Days prior to the intended Increase Date (as defined below), request (an "Increase Request") that the Commitment relating to the Facility be increased in an aggregate amount in US dollars up to an additional US$ 39,500,000.  

	
 
	
(b)
	
Any Increase Request must specify: 

	
 
	
(i)
	
the amount and currency of the relevant increase requested (the "Increase Amount"); and 

	
 
	
(ii)
	
the proposed Utilisation Date (the "Increase Date").  

	
 
	
(c)
	
Clause 4.2 (Further conditions precedent) shall apply in respect of any Utilisations of an Increase Amount. 

	
 
	
(d)
	
The Increase Request shall be substantially in the form set out in Schedule 3 (Form of Increase Request). 

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LON/MSME/S88/TLFA/EC 

 

	
 
	
(e)
	
The Lender may (in its absolute discretion) accept or decline an Increase Request, or make a counter-offer to the Borrower. 

3.PURPOSE 

3.1 Purpose 

The Borrower shall apply all amounts borrowed by it under the Facility towards purchase of shares in a Borrower Subsidiary so as to allow the relevant Borrower Subsidiary to provide Eligible Financing. 

3.2 Monitoring 

The Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement. 

4.CONDITIONS OF UTILISATION 

4.1 Initial conditions precedent  

The Borrower may not deliver an Utilisation Request unless the Lender has received all of the documents and other evidence listed in Schedule 1 (Conditions Precedent) in form and substance satisfactory to the Lender.  The Lender shall notify the Borrower upon being so satisfied.  

4.2 Further conditions precedent 

The Lender will only be obliged to advance any Loan on the date of the Utilisation Request and on the proposed Utilisation Date if: 

	
 
	
(a)
	
no Default is continuing or would result from the proposed Loan;  

	
 
	
(b)
	
the Repeating Representations to be made by the Borrower are true in all material respects; and 

	
 
	
(c)
	
the Lender has successfully refinanced the Utilisation through a notes issuance. 

5.UTILISATION 

5.1 Delivery of a Utilisation Request 

The Borrower may utilise the Facility by delivery to the Lender of a duly completed Utilisation Request not later than the Specified Time. 

5.2 Utilisation 

The Borrower shall: 

	
 
	
(a)
	
deliver a Utilisation Request on or about the date of this Agreement requesting a 

Loan to be made on the Initial Availability Date in an amount equal to the Total Commitment; and 

	
 
	
(b)
	
following acceptance by the Lender of an Increase Request in accordance with Clause 2.2 (Increase), deliver a Utilisation Request requesting a Loan to be made on the Increase Date for that accepted Increase Request in an amount equal to the Increase Amount as set out in the relevant Increase Request. 

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5.3 Completion of a Utilisation Request 

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

	
 
	
(i)
	
the proposed Utilisation Date shall be the Availability Date; 
	
 

	
 
	
(ii)
	
the currency of the Utilisation is the Base Currency; and 
	
 

	
 
	
(iii)
	
the amount of the Utilisation comply with Clause 5.2 (Utilisation); and 
	
 

	
 
	
(b)
	
Only one Loan may be requested in each Utilisation Request. 

5.4 Currency 

The currency specified in an Utilisation Request must be the Base Currency. 

6.REPAYMENT 

6.1 Repayment of Loans 

The Borrower shall repay the Loans on the Maturity Date: 

6.2 Reborrowing 

The Borrower may not reborrow any part of the Facility which is repaid. 

7.PREPAYMENT AND CANCELLATION 

7.1 Illegality 

If, in any applicable jurisdiction, it becomes unlawful for the Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan: 

	
 
	
(a)
	
the Lender or Servicer shall promptly notify the Borrower upon becoming aware of that event; 

	
 
	
(b)
	
upon the Lender or Servicer notifying the Borrower, the Total Commitment will be immediately cancelled; and 

	
 
	
(c)
	
the Borrower shall repay the Loans on the last day of the Interest Period for each Loan occurring after the Lender or Servicer has notified the Borrower or, if earlier, the date specified by the Lender or Servicer in the notice delivered to the Borrower (being no earlier than the last day of any applicable grace period permitted by law). 

7.2 Change of control 

Upon the occurrence of a Change of Control: 

	
 
	
(a)
	
the Borrower shall promptly notify the Lender and the Servicer upon becoming aware of that event; 

	
 
	
(b)
	
the Lender shall not be obliged to fund a Utilisation; 

	
 
	
(c)
	
if the Lender so requires, the Lender shall, by not less than 15 days’ notice to the Borrower, cancel the Total Commitment and declare all outstanding Loans, 

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together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Total Commitment will be cancelled and all such outstanding amounts will become immediately due and payable. 

7.3 Voluntary prepayment of Loans 

	
 
	
(a)
	
Subject to paragraph (b) below, the Borrower may, if it gives the Lender and Servicer not less than 45 calendar days' prior notice, prepay the whole or any part of any Loan (but, if in part, being an amount that reduces the amount of the Loan by a minimum amount of US$500,000) (the prepaid amount being, the Relevant Prepayment Amount). 

	
 
	
(b)
	
Any prepayment under this Agreement shall be made if and only if in addition to all other sums required to be paid under this Agreement in connection with such prepayment, the Borrower pays to the Lender a premium at the same time as the Relevant Prepayment Amount in an amount equal to (a) 1.0% of the Relevant Prepayment Amount in case the prepayment is made prior to the 24 months anniversary of the date of this Agreement; or (b) 0.0% (nil) if the prepayment is made more than 24 months after the date of this Agreement. 

	
 
	
(c)
	
A Loan may only be prepaid after the day which is one year after the last day of the applicable Availability Date with respect to such Loan. 

	
 
	
(d)
	
No prepayment fee shall be payable in respect of any prepayment arising under Clause 7.1 (Illegality) above.  

7.4 Restrictions 

	
 
	
(a)
	
Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the prepayment is to be made and the amount of that prepayment. 

	
 
	
(b)
	
Any prepayment under this Agreement shall be made together with accrued and unpaid interest on the amount prepaid and shall only be made on an Interest Payment Date. 

	
 
	
(c)
	
The Borrower may not re-borrow any part of the Facility which is prepaid. 

	
 
	
(d)
	
The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Total Commitments except at the times and in the manner expressly provided for in this Agreement. 

	
 
	
(e)
	
No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated. 

	
 
	
(f)
	
If all or part of a Loan under the Facility is repaid or prepaid, such amount will be deemed to be cancelled on the date of repayment or prepayment. 

 

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8.INTEREST 

8.1 Calculation of interest 

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

	
 
	
(a)
	
Margin; and 

	
 
	
(b)
	
LIBOR. 

8.2 Payment of interest 

	
 
	
(a)
	
The Borrower shall pay accrued interest on each Loan on each Interest Payment Date. 

	
 
	
(b)
	
The Borrower shall pay interest in the Collection Account. 

8.3 Default interest 

	
 
	
(a)
	
If the Borrower fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is 2% per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Servicer (acting reasonably).  Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrower on demand by the Lender. 

	
 
	
(b)
	
If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan: 

	
 
	
(i)
	
the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and 

	
 
	
(ii)
	
the rate of interest applying to the overdue amount during that first Interest Period shall be 2% per annum higher than the rate which would have applied if the overdue amount had not become due. 

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

8.4 Notification of rates of interest 

The Lender or the Servicer shall promptly notify the Borrower of the determination of a rate of interest under this Agreement. 

9.INTEREST PERIODS 

9.1 Interest Periods 

	
 
	
(a)
	
Each Interest Period for a Loan shall be the period from and including an Interest Payment Date (or the first Utilisation Date in relation to the first Interest Period) to but excluding the next (or first, in relation to the first Interest Period) Interest Payment Date. 

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(b)
	
An Interest Period for a Loan shall not extend beyond the Maturity Date. 

9.2Changes to Interest Period 

Any changes to an Interest Period shall be made by mutual consent. 

9.3Non-Business Days 

If an Interest Payment Date would otherwise be on a day which is not a Business Day, that Interest Payment Date will instead be on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 

10.CHANGES TO THE CALCULATION OF INTEREST 

10.1 Unavailability of Screen Rate 

If no Screen Rate is available for LIBOR for the Interest Period of a Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan. 

11.FEES 

11.1 Utilisation fee 

	
 
	
(a)
	
The Borrower shall pay to the Lender a Utilisation Fee computed at the rate of 

0.75% of the amount of each Utilisation. 

	
 
	
(b)
	
The Borrower shall pay the Utilisation Fee on the relevant Utilisation Date. 

	
 
	
(c)
	
If so specified in the Utilisation Request, the Utilisation Fee shall be paid by the Borrower by way of deduction (netting) against the disbursed amount of the Utilisation. 

 

12.TAX GROSS UP AND INDEMNITIES 

12.1 Definitions 

	
 
	
(a)
	
In this Agreement: 

"Protected Party" means a Lender which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document. 

"Qualifying Lender" means a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is : 

	
 
	
(A)
	
a Lender which is a company resident in Luxembourg for 

Luxembourg law purposes; or  

	
 
	
(B)
	
a Treaty Lender. 

"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax. 

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"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction or a CRS Deduction. 

"Tax Payment" means either the increase in a payment made by the Borrower to the Lender under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity). 

"Treaty Lender" means a Lender which: 

	
 
	
(i)
	
is treated as a resident of a Treaty State for the purposes of the Treaty; and 

	
 
	
(ii)
	
does not carry on a business in Luxembourg through a permanent establishment with which that Lender's participation in the Loan is effectively connected.  

"Treaty State" means a jurisdiction having a double taxation agreement (a "Treaty") with Luxembourg which makes provision for full exemption from tax imposed by Luxembourg on interest. 

	
 
	
(b)
	
Unless a contrary indication appears, in this Clause 12 a reference to "determines" or "determined" means a determination made in the absolute discretion of the person making the determination. 

12.2 Tax gross-up 

	
 
	
(a)
	
The Borrower shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. 

	
 
	
(b)
	
The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a 

Tax Deduction) notify the Lender and the Servicer accordingly.  Similarly, the Lender or the Servicer shall notify the Borrower on becoming so aware in respect of a payment payable to the Lender. 

	
 
	
(c)
	
If a Tax Deduction is required by law to be made by the Borrower, the amount of the payment due from the Borrower shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.  

	
 
	
(d)
	
A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by Luxembourg, if on the date on which the payment falls due: 

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

	
 
	
(ii)
	
the Lender is a Treaty Lender and the Borrower making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had the Lender complied with its obligations under paragraph (g) below. 

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(e)
	
If the Borrower is required to make a Tax Deduction, the Borrower 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.  

	
 
	
(f)
	
Within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower making that Tax Deduction shall deliver to the Lender evidence reasonably satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

	
 
	
(g)
	
To a reasonable extent, a Treaty Lender and the Borrower which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for the Borrower to obtain authorisation to make that payment without a Tax Deduction. 

12.3 Tax indemnity 

	
 
	
(a)
	
The Borrower shall (within three Business Days of demand by the Protected Party) 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. 

	
 
	
(b)
	
Paragraph (a) above shall not apply:  

	
 
	
(i)
	
with respect to any Tax assessed on the Lender under the law of the jurisdiction in which the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which the Lender is treated as resident for tax purposes 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 the Lender. However, any payment deemed to be received or receivable, including any amount treated as income but not actually received by the Lender, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose; or 

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

	
 
	
(1)
	
is compensated for by an increased payment under Clause 12.2 (Tax gross-up); or 

	
 
	
(2)
	
relates to a FATCA Deduction or a CRS Deduction required to be made by a Party. 

	
 
	
(c)
	
A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Borrower of the event which will give, or has given, rise to the claim.  

12.4 Tax Credit 

If the Borrower makes a Tax Payment and the Lender determines that:  

	
 
	
(a)
	
a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and  

	
 
	
(b)
	
the Lender has obtained and utilised that Tax Credit,  

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

12.5Lender status confirmation 

The Lender confirms that it is a Qualifying Lender (other than a Treaty Lender). 

12.6Stamp taxes 

The Borrower shall pay and, within three Business Days of demand, indemnify the Lender against any cost, loss or liability the Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document (or any document ancillary to it or which gives effect to it) and the transactions contemplated in the Finance Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment, transfer or participation. 

12.7VAT 

	
 
	
(a)
	
All amounts expressed to be payable under a Finance Document by the Borrower to the Lender which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by the Lender to the Borrower under a Finance Document and the Lender is required to account to the relevant tax authority for the VAT, the Borrower must pay to the Lender (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and the Lender must promptly provide an appropriate VAT invoice to the Borrower). 

	
 
	
(b)
	
Where a Finance Document requires the Borrower to reimburse or indemnify the Lender for any cost or expense, the Borrower shall reimburse or indemnify (as the case may be) the Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Lender reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority. 

	
 
	
(c)
	
Any reference in this Clause 12.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to each member of that group. 

	
 
	
(d)
	
In relation to any supply made by the Lender to the Borrower under a Finance Document, if reasonably requested by the Lender, the Borrower must promptly provide the Lender with details of the Borrower’s VAT registration and such other information as is reasonably requested in connection with the Lender's VAT reporting requirements in relation to such supply. 

12.8 FATCA Information 

	
 
	
(a)
	
Subject to paragraph (c) below, each Party shall, within 10 Business Days of a reasonable request by another Party:  

	
 
	
(i)
	
confirm to that other Party whether it is:  

	
 
	
(1)
	
a FATCA Exempt Party; or 

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(2)
	
not a FATCA Exempt Party;  

	
 
	
(ii)
	
supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and 

	
 
	
(iii)
	
supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime, including but not limited to the Common Reporting Standard.  

	
 
	
(b)
	
If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.  

	
 
	
(c)
	
Paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:  

	
 
	
(i)
	
any law or regulation;  

	
 
	
(ii)
	
any fiduciary duty; or 

	
 
	
(iii)
	
any duty of confidentiality 

	
 
	
(d)
	
If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.  

12.9FATCA Deduction and CRS Deduction 

	
 
	
(a)
	
Each Party may make any FATCA Deduction or CRS Deduction it is required to make by FATCA or the Common Reporting Standard, and any payment required in connection with that FATCA Deduction or CRS Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or CRS Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction or CRS Deduction.  

	
 
	
(b)
	
Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction or CRS Deduction (or that there is any change in the rate or the basis of such FATCA Deduction or CRS Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Borrower. 

12.10Tax Refund 

If any Lender or Servicer determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified or grossed-up pursuant to this Clause 12 (including by the payment of additional amounts pursuant to this Clause 12), it shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity payments made under this Clause with respect to the Taxes giving 

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rise to such refund and reduced by any payments made to Borrower pursuant to Clause 12.4), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant governmental or taxing authority with respect to such refund).  Borrower, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Clause 12.10 (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such governmental or taxing authority.  Notwithstanding anything to the contrary in this Clause 12.10, in no event will any Lender or Servicer be required to pay any amount to 

Borrower  pursuant to this Clause 12.10 the payment of which would place the applicable Lender or Servicer in a less favourable net after-Tax position than such indemnified party would have been in if the Tax subject to indemnification or gross-up and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any Lender or Servicer to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. 

 

13.OTHER INDEMNITIES 

13.1 Currency indemnity 

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

	
 
	
(i)
	
making or filing a claim or proof against the Borrower; 

	
 
	
(ii)
	
obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

the Borrower shall as an independent obligation, within three Business Days of demand, indemnify the Lender against any reasonable cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum. 

	
 
	
(b)
	
The Borrower 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. 

13.2 Other indemnities 

The Borrower shall, within three Business Days of demand, indemnify the Lender against any reasonable cost (including for the avoidance of doubt, the fees of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts), loss or liability incurred by the Lender as a result of: 

	
 
	
(a)
	
the occurrence of any Event of Default; 

	
 
	
(b)
	
a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower. 

13.3 Indemnity to the Lender 

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

	
 
	
(a)
	
investigating any event which it reasonably believes is a Default; 

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

	
 
	
(c)
	
instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement. 

14.MITIGATION BY THE LENDER 

14.1Mitigation 

	
 
	
(a)
	
The Lender 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 pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality) or Clause 12 (Tax gross-up and indemnities). 

	
 
	
(b)
	
Paragraph (a) above does not in any way limit the obligations of the Borrower under the Finance Documents. 

	
 
	
(c)
	
Notwithstanding the foregoing or any provision in this Agreement or any of the Finance Documents to the contrary, in the event any Lender makes a request for compensation under Clause 7.1 (Illegality), Clause 12 (Tax gross-up and indemnities) or any other clause or provision which is related or attributable to Taxes and such Lender is unable or unwilling to designate a different lending office pursuant to this Clause 14.1, Borrower shall have the right to prepay the Loan in full without any fee or prepayment penalty. 

14.2Limitation of liability 

	
 
	
(a)
	
The Borrower shall promptly indemnify the Lender for all reasonable costs and expenses reasonably incurred by the Lender as a result of steps taken by it under Clause 14.1 (Mitigation). 

	
 
	
(b)
	
The Lender is not obliged to take any steps under Clause 14.1 (Mitigation) if, in the opinion of the Lender (acting reasonably), to do so might be prejudicial to it. 

15.COSTS AND EXPENSES 

15.1 Amendment costs 

If the Borrower requests an amendment, waiver or consent, the Borrower shall, within three Business Days of demand, reimburse the Lender for the amount of all costs and expenses (including legal fees) reasonably incurred by the Lender in responding to, evaluating, negotiating or complying with that request or requirement. 

15.2 Enforcement costs 

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

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16.REPRESENTATIONS 

The Borrower makes the representations and warranties set out in this Clause 16 to the Lender on the date of this Agreement. 

16.1 Status 

	
 
	
(a)
	
It is an exempted company, duly incorporated and validly existing under the law of its jurisdiction of incorporation. 

	
 
	
(b)
	
It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect. 

16.2Binding obligations 

The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law limiting its obligations which are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation) legal, valid, binding and enforceable obligations. 

16.3Non-conflict with other obligations 

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with:  

	
 
	
(a)
	
any law or regulation applicable to it, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect; 

	
 
	
(b)
	
its or any of its Subsidiaries' constitutional documents; or 

	
 
	
(c)
	
any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect. 

16.4Power and authority 

It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents. 

16.5Validity and admissibility in evidence 

All Authorisations required: 

	
 
	
(a)
	
to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and 

	
 
	
(b)
	
to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation, have been obtained or effected and are in full force and effect. 

16.6 Governing law and enforcement 

	
 
	
(a)
	
The choice of English law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation. 

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(b)
	
Any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation. 

16.7Deduction of Tax 

It is not required to make any Tax Deduction (as defined in Clause 12.1 (Definitions)) from any payment it may make under any Finance Document to a Lender which is a Qualifying Lender:  

16.8No filing or stamp taxes 

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, other than as specifically referenced in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation). 

16.9No default 

	
 
	
(a)
	
No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation. 

	
 
	
(b)
	
No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries') assets are subject which might have a Material Adverse Effect. 

16.10No misleading information 

	
 
	
(a)
	
Any written factual information provided by the Borrower in relation to any Finance Document was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated and was not misleading in any material respect. 

	
 
	
(b)
	
The financial projections delivered to the Lender pursuant to this Agreement have been prepared on the basis of recent historical information and on the basis of reasonable assumptions (it being understood that projections are not to be viewed as facts and are subject to significant uncertainties and contingencies, which are beyond the control of the Borrower, and that no assurance or guarantee can be 

given that any projections will be realized, that actual results may differ and such differences may be material). 

	
 
	
(c)
	
No information has been given or withheld that results in the information being untrue or misleading in any material respect, when taken as a whole.   

16.11Financial statements 

	
 
	
(a)
	
Its financial statements were prepared in accordance with the Accounting Principles consistently applied. 

	
 
	
(b)
	
Its financial statements fairly represent its financial condition as at the end of the relevant financial year and operations during the relevant financial year. 

	
 
	
(c)
	
There has been no material adverse change in its business or financial condition or the business of the Borrower since the date of this Agreement. 

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16.12Security 

The Security granted under the Shareholder’s Security Agreements will rank at least pari passu with the claims of all its other secured creditors. 

16.13Pari passu ranking 

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 

16.14No proceedings pending or threatened 

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect has or have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries. 

16.15Assets 

The Borrower has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as presently conducted.  

16.16Legal and beneficial ownership 

The Borrower is the sole legal and beneficial owner of the respective assets over which it purports to grant Security.  

16.17No breach of laws  

	
 
	
(a)
	
The Borrower has not breached any law or regulation binding on it which breach has or is reasonably likely to have a Material Adverse Effect.  

	
 
	
(b)
	
No labour disputes are current or, to the best of its knowledge and belief (having made due and careful enquiry), threatened against the Borrower which have or are reasonably likely to have a Material Adverse Effect.  

16.18Anti-corruption and anti-money laundering laws  

	
 
	
(a)
	
The Borrower conducts its business in compliance with applicable anticorruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.  

	
 
	
(b)
	
The Borrower complies with anti-money laundering and anti-terrorism financing standards  in accordance with the Financial Action Task Force (FAFT) recommendations for financial institutions as updated from time to time. 

	
 
	
(c)
	
The Borrower does not use the proceeds from the Loan to directly or indirectly finance entities that (i) are in countries which are under sanctions or embargoes as defined by the UNEU or US; or (ii) are involved in any terrorism activities. 

16.19Tax residence 

	
 
	
(a) 
	
The Borrower has its residence for tax purposes in the Cayman Islands 

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16.20Repetition 

	
 
	
(a)
	
The Borrower makes the representations and warranties under this Clause 16 on the date of this Agreement and on the first Utilisation Date (other than the Repeating Representations that are made on the date of this Agreement and on each Utilisation Date). 

	
 
	
(b)
	
The Repeating Representations are deemed to be made by the Borrower by reference to the facts and circumstances then existing on the date of each Utilisation Request and the first day of each Interest Period.  

	
 
	
(c)
	
Each representation or warranty deemed to be made after the first Utilisation Date shall be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made. 

17.INFORMATION UNDERTAKINGS 

The undertakings in this Clause 17 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents. 

17.1Financial statements 

The Borrower shall supply to the Servicer, in form and substance reasonably satisfactory to the Servicer and the Lender, the following: 

	
 
	
(a)
	
as soon as the same become available, but in any event within 30 days after the end of each calendar month, the monthly reporting (including trial balances) required by the Servicer, which shall be substantially in the form to be provided by the Servicer (through the Designated Website or otherwise), whereas however no monthly reporting pursuant to this Clause 17.1(a) will be required for the months of January, February and March of each year; 

	
 
	
(b)
	
as soon as the same become available, but in any event within 45 days (or within 90 days, in relation to the last fiscal quarter of a year only) after the end of each fiscal quarter (ending on 31 March, 30 June, 30 October and 31 December in each year), the quarterly financial statements required by the Servicer; 

	
 
	
(c)
	
As soon as available, and in any event within 150 calendar days after the end of each fiscal year of the Borrower, copies of its audited consolidated financial statements for its most recently completed fiscal year, prepared in accordance with generally accepted accounting principles in its jurisdiction including its balance sheet, income statement and statement of cash flow. All such information is complete and correct in all material respects and fairly represents the financial condition, results of operation and changes in cash flow of the Borrower as of the date thereof. 

17.2Compliance Certificate 

	
 
	
(a)
	
The Borrower shall supply to the Servicer, with each set of financial statements delivered pursuant to Clause 17.1(b) and Clause 17.1(c) (Financial statements), a Compliance Certificate: 

	
 
	
(i)
	
setting out (in reasonable detail) computations as to compliance with Clause 18 (Financial covenants) as at the date as at which those financial statements were drawn up; 

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(ii)
	
confirming whether or not as at the date of the relevant accounts the Borrower was in compliance with the financial covenants contained in Clause 18 (Financial covenants); 

	
 
	
(iii)
	
confirming that no Event of Default has occurred and is continuing on such date; 

	
 
	
(iv)
	
setting out any Financial Indebtedness of the Borrower in an aggregate amount exceeding US$500,000 (or its equivalent); and 

	
 
	
(v)
	
setting out the details of the Eligible Financing and confirmation that the Eligible Financing is in line with the Investment Policy. ; 

	
 
	
(b)
	
Each Compliance Certificate shall be signed by one director of the Borrower and, if required to be delivered with the financial statements delivered pursuant to Clause 17.1 (c) (Financial statements), shall be reported on by the Borrower's auditors.  

17.3Requirements as to financial statements 

The Borrower shall ensure that each of the financial statements delivered to the Servicer pursuant to this Agreement shall: 

	
 
	
(a)
	
include a balance sheet, profit and loss account, and full consolidated cashflow statement (including changes in cash); 

	
 
	
(b)
	
in the case of annual financial statements, be audited by the auditors of the Borrower and shall be accompanied by a letter addressed to the management of the Borrower by the auditors and accompanying the statements;  

	
 
	
(c)
	
shall include any other information which the Servicer may reasonably require. 

 

17.4Information: miscellaneous 

The Borrower shall supply to the Servicer: 

	
 
	
(a)
	
all documents dispatched by the Borrower to its shareholders, or any class of them promptly (to the extent they contain information that is material to the 

Lender) or its creditors promptly after they are dispatched; 

	
 
	
(b)
	
promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against it, and which might, if adversely determined, have a Material Adverse Effect;  

	
 
	
(c)
	
promptly, such further information regarding the financial condition, business and operations of the Borrower as the Lender or Servicer may reasonably request provided that nothing in this Clause 17.4(c) shall require the Borrower to take any action that would violate any third party customary confidentiality agreement with any Person that is not an affiliate or waive any attorney-client or similar privilege; and 

	
 
	
(d)
	
as soon as practicable, and in any event within five (5)Business Days after the Borrower has voluntarily prepaid any Financial Indebtedness to any of its creditors (excluding the Lender), a notice of such voluntary prepayment. The notification requirement pursuant to this Clause 17.4 only applies if the cumulative amount of so prepaid Financial Indebtedness within a three (3) 

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months period ending at the date of determination exceeds five percent (5%) of the Borrower’s total debt as of such date of determination. 

17.5Notification of default 

The Borrower shall notify the Lender and the Servicer of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence, and in any event within five (5) Business Days after the Borrower becomes aware of the occurrence of existence of any Default.  

17.6Designated Websites 

	
 
	
(a)
	
The Borrower shall promptly upon becoming aware of its occurrence notify the Lender and the Servicer if: 

	
 
	
(i)
	
the Designated Website cannot be accessed due to technical failure; 

	
 
	
(ii)
	
the password specifications for the Designated Website change; 

	
 
	
(iii)
	
any new information which is required to be provided under this Agreement is posted onto the Designated Website;  

	
 
	
(iv)
	
any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or 

	
 
	
(v)
	
the Borrower becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.   

If the Borrower notifies the Lender and the Servicer under paragraph (a)(i) or paragraph (a)(v) above, all information to be provided by the Borrower under this Agreement after the date of that notice shall be supplied in paper form unless and until the Lender and the Servicer is satisfied that the circumstances giving rise to the notification are no longer continuing.  

17.7 "Know your customer" checks 

	
 
	
(a) 
	
If:  

	
 
	
(i)
	
the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; 

	
 
	
(ii)
	
any change in the status of the Borrower after the date of this Agreement; or 

	
 
	
(iii)
	
a proposed assignment or transfer by the Lender of any of its rights and obligations under this Agreement, 

obliges the Lender or the Servicer (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the written request of the Lender or Servicer supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Lender or Servicer in writing (or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Lender or Servicer or, in the case of the 

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event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 

18.FINANCIAL COVENANTS 

18.1Financial definitions 

In this Agreement:  

 

"Equity" means, at any date of determination, the total equity of the Borrower (calculated in accordance with the Accounting Principles), including shareholder’s equity, reserves (excluding asset revaluation reserves and including any share premium account and capital redemption reserve funds), retained earnings or losses and current year cumulated net income or loss and including subordinated debt. 

"Financial Leverage" means, at any date of determination, the ratio of Financial Indebtedness on such date divided by Equity on such date. 

18.2Financial condition 

The Borrower shall ensure that: 

 

	
 
	
(a)
	
Financial leverage 

The Financial Leverage shall be of not more than 1.0 (one). 

	
 
	
(b)
	
Country exposure limit 

The exposure by the Borrower (on a consolidated basis, i.e. consolidating each Borrower Subsidiary) to any single country shall not exceed 20% of the Borrower’s total assets, without the prior consent of the Lender. 

	
 
	
(c)
	
Investee exposure limit 

The exposure by the Borrower (on a consolidated basis, i.e. consolidating each Borrower Subsidiary) to any single investee shall not exceed 5% of the Borrower’s total assets, without the prior consent of the Lender. 

	
 
	
(d)
	
Third party debt limits in relation to Borrower Subsidiaries 

The Borrower shall ensure that no Borrower Subsidiary incurs any Financial Indebtedness, unless prior consent in writing by the Lender has been obtained. 

19.GENERAL UNDERTAKINGS 

The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

19.1 Authorisations 

The Borrower will promptly: 

	
 
	
(a)
	
obtain, comply with and do all that is necessary to maintain in full force and effect; and 

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(b)
	
supply certified copies to the Lender or the Servicer of,  

any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document. 

19.2Perfection Requirements 

The Borrower shall promptly obtain or comply with any regulations, filings, notices and other actions and steps required to be made in any jurisdiction in order to perfect the Security created by the Shareholder’s Security Agreements or in order to achieve the relevant priority for such Security of which the Borrower is aware or which are notified to it by the Lender. 

 

19.3Compliance with laws 

The Borrower will comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents. 

19.4Negative Pledge 

In this Clause 19.4, "Quasi-Security" means an arrangement or transaction described in paragraph (b) below. 

	
 
	
(a)
	
The Borrower will not create or permit to subsist any Security or Quasi-Security over more than 50% of its total assets. 

	
 
	
(b)
	
The Borrower will not:  

	
 
	
(i)
	
sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by it; 

	
 
	
(ii)
	
sell, transfer or otherwise dispose of any of its receivables on recourse terms; 

	
 
	
(iii)
	
enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or 

	
 
	
(iv)
	
enter into any other preferential arrangement having a similar effect, 

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset. 

19.5 Disposals 

	
 
	
(a)
	
The Borrower will not enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset. 

	
 
	
(b)
	
Paragraph (a) above does not apply to any sale, lease, transfer or other disposal: 

	
 
	
(i)
	
made in the ordinary course of business of the disposing entity; 

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(ii)
	
of assets in exchange for other assets that are useful for the Borrower or any of the Borrower Subsidiaries; or  

	
 
	
(iii)
	
where the higher of the market value or consideration receivable does not exceed 10% of the Borrower’s net assets in any financial year; 

	
 
	
(iv)
	
any sale, transfer or disposition with respect to shares of the Borrower Subsidiaries that are pledged to other parties (and which are not a part of the collateral pursuant to the Financing Documents). 

19.6 Merger 

	
 
	
(a)
	
The Borrower will not enter into any amalgamation, demerger, merger or corporate reconstruction.  

	
 
	
(b)
	
Paragraph (a) above does not apply to any sale, lease, transfer or other disposal permitted pursuant to Clause 19.5 (Disposals). 

19.7Change of business 

The Borrower will ensure that no substantial change is made to the general nature of its business from that carried on at the date of this Agreement. 

19.8Maximum prepayment 

The Borrower shall not voluntarily prepay any Financial Indebtedness to any of its creditors (excluding the Lender), if the cumulative amount of the prepaid Financial Indebtedness within a three months period ending at the date of determination exceeds five percent (5%) of the Borrower’s total Financial Indebtedness at the date of determination, unless (i) the Lender has given prior written consent to such a voluntary prepayment (which shall not be unreasonably withheld where Financial Indebtedness is prepaid in the context of a refinancing transaction at equal or more favourable terms) or (ii) the loans hereunder are prepaid in accordance with and subject to Clause 7.3 on a pro rata basis along with all other Financial Indebtedness then outstanding. 

	
20.
	
EVENTS OF DEFAULT 

Each of the events or circumstances set out in Clause 20 is an Event of Default (save for Clause 20.12 (Acceleration)). 

20.1 Non-payment 

The Borrower does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable unless: 

	
 
	
(a)
	
its failure to pay is caused by: 

	
 
	
(i)
	
administrative or technical error; or 

	
 
	
(ii)
	
a Disruption Event; and 

	
 
	
(b)
	
payment is made within 3 (three) Business Days of its due date. 

20.2Financial covenants 

Any requirement of Clause 18 (Financial covenants) is not satisfied. 

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20.3Other obligations 

	
 
	
(a)
	
The Borrower does not comply with any provision of the Finance Documents (other than those referred to in Clause 20.1 (Non-payment) and Clause 20.2 (Financial covenants).   

	
 
	
(b)
	
No Event of Default under paragraph (a) above in relation to Clause 18 (Financial Covenants) will occur if the failure to comply is capable of remedy and is remedied within 5 Business Days of the earlier of (A) the Lender giving notice to the Borrower and (B) the Borrower becoming aware of the failure to comply. 

20.4Misrepresentation 

Any representation or statement made or deemed to be made by the Borrower in the Finance Documents or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made. 

20.5Cross default 

	
 
	
(a)
	
Any Financial Indebtedness of the Borrower is not paid when due nor within any originally applicable grace period. 

	
 
	
(b)
	
Any Financial Indebtedness of the Borrower is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). 

	
 
	
(c)
	
Any commitment for any Financial Indebtedness of the Borrower is cancelled or suspended by a creditor of the Borrower as a result of an event of default (however described). 

	
 
	
(d)
	
Any creditor of the Borrower becomes entitled to declare any Financial Indebtedness of the Borrower due and payable prior to its specified maturity as a result of an event of default (however described). 

	
 
	
(e)
	
No Event of Default will occur under this Clause 20.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than  $1,000,000. 

20.6 Insolvency 

	
 
	
(a)
	
The Borrower: 

	
 
	
(i)
	
is unable or admits inability to pay its debts as they fall due; 

	
 
	
(ii)
	
suspends making payments on any of its debts; or 

	
 
	
(iii)
	
by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding the Lender in its capacity as such) with a view to rescheduling any of its indebtedness. 

	
 
	
(b)
	
The value of the assets of the Borrower is less than its liabilities (taking into account contingent and prospective liabilities) 

20.7 Insolvency proceedings 

Any corporate action, legal proceedings or other procedure or step is taken in relation to: 

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(a)
	
the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower; 

	
 
	
(b)
	
a composition, compromise, assignment or arrangement with any creditor of the Borrower; 

	
 
	
(c)
	
the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of the Borrower or any of its assets; or 

	
 
	
(d)
	
enforcement of any Security over any assets of the Borrower, 

or any analogous procedure or step is taken in any jurisdiction.  This Clause 20.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 10 days of commencement. 

 

20.8Creditors' process 

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of the Borrower having an aggregate value of 5% of Equity, and is not discharged within 15 days. 

20.9Unlawfulness 

It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance Documents. 

20.10Repudiation 

The Borrower repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 

20.11Material adverse change 

The Lender or the Servicer determines that a Material Adverse Effect exists, has occurred or might occur. 

20.12Acceleration 

On and at any time after the occurrence of an Event of Default which is continuing, the Lender may, by notice to the Borrower: 

	
 
	
(a)
	
cancel the Total Commitments whereupon they shall immediately be cancelled; 

	
 
	
(b)
	
declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or 

	
 
	
(c)
	
declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Lender. 

	
21.
	
CHANGES TO THE LENDERS 

21.1 Assignments and transfers by the Lender 

The Lender (the "Existing Lender") may:  

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(a)
	
assign any of its rights; or 

	
 
	
(b)
	
transfer by novation any of its rights and obligations, 

to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").  Notwithstanding anything to the contrary in this Agreement or any of the Finance Documents, Borrower shall not be obligated to make any greater payment under Clause 12 or any other provision of this Agreement or any of the Finance Documents which is related or attributable to Taxes than the Borrower would have been obligated to make in the absence of any assignment or transfer in accordance with this section 21.1.  Any New Lender shall provide to Borrower any documentation or forms reasonable required by Borrower to meet its reporting obligations under FATCA or any other applicable law or regulation (including Internal Revenue Service Forms W-8 or W-9). 

21.2 Security over the Lender’s rights 

In addition to the other rights provided to the Lender under this Clause 21, the Lender may without consulting with or obtaining consent from the Borrower, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of the Lender including, without limitation: 

	
 
	
(a)
	
any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and 

	
 
	
(b)
	
in the case of a Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by the Lender as security for those obligations or securities, 

except that no such charge, assignment or Security shall: 

	
 
	
(i)
	
release the Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or 

	
 
	
(ii)
	
require any payments to be made by the Borrower other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the Lender under the Finance Documents. 

	
22.
	
CONDUCT OF BUSINESS BY THE LENDER 

No provision of this Agreement will: 

	
 
	
(a)
	
interfere with the right of the Lender or Servicer to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

	
 
	
(b)
	
oblige the Lender or Servicer to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or 

	
 
	
(c)
	
oblige the Lender or Servicer to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

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23.
	
LIMITED RECOURSE 

The Borrower hereby acknowledges and agrees that: 

	
 
	
(a)
	
the Lender’s ability to satisfy its payment obligations under the Finance Documents, and in particular the obligation of the Lender to make the Facility available to the Borrower, shall be limited to the Compartment Assets of the Lender; and 

	
 
	
(b)
	
if the Compartment Assets are insufficient to satisfy any obligations of the Lender to the Borrower, neither the Lender, Micro, Small & Medium Enterprises Bonds S.A. nor any of its other compartments shall be liable for any shortfall arising and the Borrower shall not have any further claims against the Lender, Micro, Small & Medium Enterprises Bonds S.A. or any of its other compartments.  

For the purpose of this Clause, “Compartment Assets” means any assets (or proceeds thereof) of the Lender in respect of its compartment “Series 88”. 

	
24.
	
PAYMENT MECHANICS 

24.1 Payments to the Lender  

	
 
	
(a)
	
On each date on which the Borrower is required to make a payment under a Finance Document, the Borrower shall make the same available to the Lender (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 Lender as being customary at the time for settlement of transactions in the relevant currency in the place of payment. 

	
 
	
(b)
	
Payment shall be made to such account with the details set out in Schedule 8 (Account). 

24.2Partial payments 

If the Lender receives a payment that is insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Lender shall apply that payment towards the obligations of the Borrower under the Finance Documents in such order as the Lender may determine.  

24.3No set-off by the Borrower 

All payments to be made by the Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim. 

24.4Business Days 

	
 
	
(a)
	
Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). 

	
 
	
(b)
	
During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date. 

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24.5 Currency of account 

	
 
	
(a)
	
Subject to paragraphs (b) and (c) below, the Base Currency is the currency of account and payment for any sum due from the Borrower under any Finance Document. 

	
 
	
(b)
	
Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

	
 
	
(c)
	
Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency. 

24.6 Change of currency 

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

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

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

	
 
	
(b)
	
If a change in any currency of a country occurs, this Agreement will, to the extent the Lender (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 Market and otherwise to reflect the change in currency. 

24.7 Disruption to payment systems etc. 

If either the Lender or the Servicer determines (in their discretion) that a Disruption Event has occurred or the Lender or the Servicer is notified by the Borrower that a Disruption Event has occurred: 

	
 
	
(a)
	
the Lender and the Servicer may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Lender may deem necessary in the circumstances; 

	
 
	
(b)
	
the Lender and the Servicer shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) if, in their opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes; 

	
 
	
(c)
	
any such changes agreed upon by the Lender, the Servicer and the Borrower shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents; and 

	
 
	
(d)
	
the Lender and the Servicer shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, 

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without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Lender) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 24.7.  

	
25.
	
SET-OFF 

The Lender may set off any matured obligation due from the Borrower under the Finance Documents against any matured obligation owed by the Lender to the Borrower, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 

	
26.
	
NOTICES 

26.1 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. 

26.2 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 that identified with its name below (Signature Page), or any substitute address or fax number or department or officer as the Borrower may notify to the Servicer by not less than five Business Days’ notice.  

26.3 Delivery 

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

	
 
	
(i)
	
if by way of fax, when received in legible form; or 

	
 
	
(ii)
	
if by way of letter, when it has been left at the relevant address or 5 Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address; 

and, if a particular department or officer is specified as part of its address details provided under Clause 26.2 (Addresses), if addressed to that department or officer. 

	
 
	
(b)
	
Any communication or document to be made or delivered to the Lender or the Servicer will be effective only when actually received by the Lender or the Servicer and then only if it is expressly marked for the attention of the department or officer identified with the Lender's signature or Servicer’s signature below (or any substitute department or officer as the Lender or Servicer shall specify for this purpose). 

	
 
	
(c)
	
Any communication or document which becomes effective, in accordance with paragraphs (a) to (d) above, after 5:00 p.m. in the place of receipt shall be deemed only to become effective on the following day. 

26.4 Electronic communication 

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(a)
	
Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties:  

	
 
	
(i)
	
notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and 

	
 
	
(ii)
	
notify each other of any change to their address or any other such information supplied by them by not less than five Business Days' notice. 

	
 
	
(b)
	
Any such electronic communication as specified in paragraph (a) above to be made between the Borrower and the Lender or Servicer may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication.  

	
 
	
(c)
	
Any such electronic communication as specified in paragraph (a) above made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made by the Borrower to the Lender or Servicer only if it is addressed in such a manner as the Lender or the Servicer shall specify for this purpose. 

	
 
	
(d)
	
Any electronic communication which becomes effective, in accordance with paragraph (c) above, after 5:00 p.m. in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day. 

	
 
	
(e)
	
Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 26.4. 

26.5 English language 

	
 
	
(a)
	
Any notice given under or in connection with any Finance Document must be in English. 

	
 
	
(b)
	
All other documents provided under or in connection with any Finance Document must be: 

	
 
	
(i)
	
in English; or 

	
 
	
(ii)
	
if not in English, and if so required by the Lender or the Servicer, 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. 

	
27.
	
CALCULATIONS AND CERTIFICATES 

27.1 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 the Lender or the Servicer are prima facie evidence of the matters to which they relate. 

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27.2 Certificates and Determinations 

Any certification or determination by the Lender or the Servicer 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. 

27.3 Day count convention 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days. 

	
28.
	
PARTIAL INVALIDITY 

If, at any time, any provision of a Finance Document 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. 

	
29.
	
REMEDIES AND WAIVERS 

No failure to exercise, nor any delay in exercising, on the part of the Lender or the Servicer, any right or remedy under a Finance Document shall operate as a waiver of any  such right or remedy or constitute an election to affirm any of the Finance Documents.  No election to affirm any Finance Document on the part of the Lender or the Servicer shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law. 

	
30.
	
AMENDMENTS AND WAIVERS 

Any term of the Finance Documents may be amended or waived only with the consent of the Lender, the Servicer and the Borrower and any such amendment or waiver will be binding on all Parties. 

	
31.
	
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. 

	
32.
	
GOVERNING LAW 

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

	
33.
	
ENFORCEMENT 

33.1 Jurisdiction 

	
 
	
(a)
	
The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a "Dispute"). 

- 37 - 

LON/MSME/S88/TLFA/EC 

 

	
 
	
(b)
	
The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary. 

	
 
	
(c)
	
This Clause 33.1 is for the benefit of the Lender only.  As a result, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions. 

33.2 Service of process 

Without prejudice to any other mode of service allowed under any relevant law, the Borrower:  

	
 
	
(a)
	
irrevocably appoints Law Debenture Corporate Services Inc. as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and 

	
 
	
(b)
	
agrees that failure by a process agent to notify the Borrower of the process will not invalidate the proceedings concerned. 

	
34.
	
ARBITRATION 

34.1 Future disputes 

	
 
	
(a)
	
Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the rules of the London Court of International Arbitration (the “LCIA Rules”), which rules are deemed to be incorporated by reference into this Clause 34.1. 

	
 
	
(b)
	
The number of arbitrators shall be one. 

	
 
	
(c)
	
The seat, or legal place, of arbitration shall be London, England. 

	
 
	
(d)
	
The language to be used in the arbitral proceedings shall be English. 

 

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

- 38 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 1

CONDITIONS PRECEDENT TO INITIAL UTILISATION 

 

	
1.
	
The Borrower  

	
 
	
(a)
	
A copy of the constitutional documents of the Borrower. 

	
 
	
(b)
	
A copy of a resolution of the board of directors of the Borrower: 

	
 
	
(i)
	
approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party; 

	
 
	
(ii)
	
authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

	
 
	
(iii)
	
authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party. 

	
 
	
(c)
	
A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above. 

	
 
	
(d)
	
A certificate of the Borrower (signed by a director) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded. 

	
 
	
(e)
	
A certificate of an authorised signatory of the Borrower certifying that each copy document relating to it specified in this Schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

	
2.
	
Finance Documents 

	
 
	
(a)
	
This agreement, duly executed by the Borrower 

	
 
	
(b)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Africa, Ltd., duly executed by the Borrower; 

	
 
	
(c)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – African Trade Finance, Ltd., duly executed by the Borrower; 

	
 
	
(d)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – African Trade Finance II, Ltd., duly executed by the Borrower; 

	
 
	
(e)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Asia, Ltd., duly executed by the Borrower; 

	
 
	
(f)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Asia II, Ltd., duly executed by the Borrower; 

	
 
	
(g)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund 

	
 
	
–
	
Asia III, Ltd., duly executed by the Borrower; 

- 39 - 

LON/MSME/S88/TLFA/EC 

 

	
 
	
(h)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Latin America, Ltd., duly executed by the Borrower; 

	
 
	
(i)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Latin America II, Ltd., duly executed by the Borrower; 

	
 
	
(j)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund – Latin America III, Ltd., duly executed by the Borrower; 

	
 
	
(k)
	
The Shareholder’s Security Agreement in respect of TriLinc Global Impact Fund 

	
 
	
–
	
Trade Finance, Ltd., duly executed by the Borrower; 

	
3.
	
Legal opinion 

	
 
	
(a)
	
A legal opinion of the legal advisers to the Borrower in the relevant jurisdiction relating to the capacity of the Borrower to enter into the Agreement, and the validity and enforceability of the Agreement in the jurisdiction of the Borrower, substantially in the form distributed to the Lender prior to signing this Agreement.   

	
 
	
(b)
	
A legal opinion of the legal advisers to the Borrower in the relevant jurisdiction relating to the capacity of the Borrower to enter into the relevant Shareholder’s Security Agreements, and the validity and enforceability of the Shareholder’s Security Agreements in the jurisdiction of the Borrower and Borrower Subsidiary. 

 

	
4.
	
Other documents and evidence 

	
 
	
(a)
	
The consolidated annual financial statements of the Fund for the financial years ended December 31, 2015 and December 31, 2016. 

	
 
	
(b)
	
The Servicer has assigned an internal credit scoring to the Borrower. 

	
 
	
(c)
	
Evidence that any process agent referred to in Clause 33.2 (Service of process), has accepted its appointment. 

	
 
	
(d)
	
Any other information reasonably requested by the Servicer. 

	
 
	
(e)
	
A copy of any other Authorisation or other document, opinion or assurance which the Lender considers to be necessary (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document. 

	
 
	
(f)
	
Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 11 (Fees) have been paid or will be paid by the first Utilisation Date. 

	
 
	
(g)
	
The financial statements (including a balance sheet and income statement) of the Borrower and of each Borrower Subsidiary as of 31 December 2016, prepared in accordance with the Accounting Principles, and in form and substance satisfactory to the Servicer. 

	
 
	
(h)
	
The information pursuant to Clause 17.1(a) for the month of April 2017. 

 

- 40 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 2

FORM OF UTLISATION REQUEST 

 

 

From:[Borrower] 

To:[Lender] 

CC:[Servicer] 

Dated:  

Dear Sirs 

[Borrower] – [            ] Facility Agreement dated

[         ] (the "Agreement")

	
1.
	
We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request. 

	
2.
	
We wish to borrow a Loan on the following terms: 

		
	
Proposed Utilisation Date: 
	
[the Availability Date] 

	
Currency of Loan: 
	
[Base Currency] 

	
Amount: 
	
[Commitment] 

	
Loan net of Utilisation Fee: 
	
[Yes / No] 

   

	
3.
	
We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request. 

	
4.
	
The proceeds of this Loan should be credited to [account].  

	
5.
	
This Utilisation Request is irrevocable. 

Yours faithfully

 

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

authorised signatory for

[name of Borrower]

 

 

 

 

Accepted and agreed: 

 

 

 

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

authorised signatory for

[name of Lender]

 

 

 

- 41 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 3

FORM OF INCREASE REQUEST

 

 

From:[Borrower] 

To:[Lender] 

CC:[Servicer] 

Dated:  

Dear Sirs 

[Borrower] – [            ] Facility Agreement dated

[         ] (the "Agreement")

	
1.
	
We refer to the Agreement.  This is an Increase Request.  Terms defined in the Agreement have the same meaning in this Increase Request unless given a different meaning in this Increase Request. 

	
2.
	
We request an increase of the Total Commitment and on the following terms: 

		
	
Increase Date:
	
[•]

	
Increase Amount:
	
[•]

Currency

 

	
3.
	
We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Increase Request. 

	
4.
	
The proceeds of this Loan should be credited to [account].  

	
5.
	
This Increase Request is irrevocable. 

Yours faithfully

 

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

authorised signatory for

[name of Borrower]

 

- 42 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 4

FORM OF COMPLIANCE CERTIFICATE

To:[      ] as Lender  

CC:[      ] as Servicer 

From: [Borrower] 

Dated:  

Dear Sirs 

[Borrower] – [         ] Facility Agreement

dated [           ] (the "Agreement")

	
1.
	
We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate. 

	
2.
	
We confirm that:  [Insert details of covenants to be certified] 

	
3.
	
[We confirm that no Default is continuing.] 1 

 

			
	
Signed: 
	
............... 
	
............... 

	
 
	
Director 
	
Director 

	
 
	
of 
	
of 

	
 
	
[Borrower] 
	
[Borrower] 

 

[insert applicable certification language] 

 

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

for and on behalf of 

[name of auditors of the Borrower]  

 

 

	
	 

	
1
	
 If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it. 

- 43 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 5

TIMETABLES

    

		
	
Delivery of a duly completed Utilisation
	
2 Business Days 

Request (Clause 5.1 (Delivery of a Utilisation 

Request)) 

 

 

 

		
	
LIBOR is fixed
	
Quotation Day 11:00 a.m. 

 

 

 

 

 

- 44 - 

LON/MSME/S88/TLFA/EC 

 

SCHEDULE 6

ACCOUNT

 

 

		
	
Correspondent Bank:
	
BNP Paribas New York  

	
Correspondent Swift:
	
BNPAUS3NXXX 

	
Beneficiary Bank:
	
BNP Paribas Securities Services Luxembourg 

	
Beneficiary Swift:
	
PARBLULLXXX 

	
Account Name:
	
Micro, Small & Medium Enterprises Bonds SA, Series 88 

	
Account Number:
	
10336600106 

	
IBAN:
	
LU13 3280 3544 15P1 L840 

 

 

- 45 - 

LON/MSME/S88/TLFA/EC 

 

SIGNATURE PAGE 

LENDER: 

MICRO, SMALL & MEDIUM ENTERPRISES BONDS S.A. 

Acting on behalf of its  

COMPARTMENT SERIES 88 

 

						
	
By:
	
 
	
 
	
By:
	
 

	
     Name: 
	
 
	
     Name:
	
 

	
     Title: 
	
 
	
     Title: 
	
 

	
 
	
 
	
 
	
 

	
ADDRESSES FOR NOTICES 
	
 
	
 
	
 

 

 

Micro, Small & Medium Enterprises Bonds SA 

20, rue de la Poste 

 

2346 Luxembourg

Luxembourg 

Attn: Managing Director 

Fax:      +352 27 00 12 205 

Email:  LuxStructuredFinance@citco.com 

 

- 46 - 

LON/MSME/S88/TLFA/EC 

 

SERVICER: 

SYMBIOTICS SA  

						
	
By:
	
 
	
 
	
By:
	
 

	
     Name: 
	
 
	
     Name:
	
 

	
     Title: 
	
 
	
     Title: 
	
 

	
 
	
 
	
 
	
 

	
ADDRESSES FOR NOTICES 
	
 
	
 
	
 

 

Symbiotics SA  

31 Rue de la Synagogue 

1204 Geneva, Switzerland 

Attn : Investment Operations 

Phone : +41 22 338 15 40 

Fax : +41 22 338 15 41 

Email : info@symbioticsgroup.com 

 

 

- 47 - 

LON/MSME/S88/TLFA/EC 

 

BORROWER: 

TRILINC GLOBAL IMPACT FUND CAYMAN, LTD.  

						
	
By:
	
 
	
 
	
By:
	
 

	
     Name: 
	
 
	
     Name:
	
 

	
     Title: 
	
 
	
     Title: 
	
 

	
 
	
 
	
 
	
 

	
ADDRESSES FOR NOTICES 
	
 
	
 
	
 

 

ADDRESSES FOR NOTICES  

TriLinc Global Impact Fund Cayman, Ltd. 

1230 Rosecrans Ave., Suite 605 

Manhattan Beach, CA 90266  USA 

Attn : Gloria S. Nelund 

Phone : 310-997-0580 

Fax : 440-247-3709 

Email : gnelund@trilincglobal.com 

 

- 48 - 

LON/MSME/S88/TLFA/ECtrilinc-ex102_9.htm

 

Exhibit 10.2

EXECUTION VERSION

(1) TRILINC GLOBAL IMPACT FUND CAYMAN,LTD.

(2) MICRO,SMALL & MEDIUM ENTERPRISES BONDS S.A., LUXEMBOURG 

ACTING ON BEHALF OF ITS COMPARTMENT SERIES 88

 

 

EQUITABLE SHARE MORTGAGE IN RESPECT OF SHARES OF THE COMPANIES 

LISTED IN APPENDIX A

 

 

 

 

 

THE TAKING OR SENDING BY ANY PERSON OF AN ORIGINAL OF THIS

DOCUMENT INTO THE CAYMAN ISLANDS MAY GIVE RISE TO THE IMPOSITION

OF CAYMAN ISLANDS STAMP DUTY

6 Gracechurch Street, London EC3V 0AT

T44 (0) 20 7220 4999 F44 (0) 20 7220 4998 www.walkersglobal.com

REF: JA/L07947

 

 

 

5694219.3 M5844.L07947

 

 

	
TABLE OF CONTENTS

	
 
	
 
	
 

	
CLAUSE
	
PAGE

	
 
	
 
	
 

	
 
	
 
	
 

	
1.
	
DEFINITIONS AND INTERPRETATION
	
1

	
 
	
 
	
 

	
2.
	
REPRESENTATION AND WARRANTIES
	
3

	
 
	
 
	
 

	
3.
	
COVENANT TO PAY
	
4

	
 
	
 
	
 

	
4.
	
SECURITY
	
4

	
 
	
 
	
 

	
5.
	
RIGHTS IN RESPECT OF MORTGAGED PROPERTY
	
6

	
 
	
 
	
 

	
6.
	
PRESERVATION OF SECURITY
	
6

	
 
	
 
	
 

	
7. 
	
ENFORCEMENT OF SECURITY
	
9

	
 
	
 
	
 

	
8.
	
APPOINTMENT OF A RECEIVER
	
10

	
 
	
 
	
 

	
9.
	
POWERS OF A RECEIVER
	
11

	
 
	
 
	
 

	
10. 
	
FURTHER ASSURANCES
	
11

	
 
	
 
	
 

	
11.
	
INDEMNITIES
	
11

	
 
	
 
	
 

	
12.
	
POWER OF ATTORNEY
	
12

	
 
	
 
	
 

	
13. 
	
RELEASE
	
13

	
 
	
 
	
 

	
14.
	
NOTICES
	
13

	
 
	
 
	
 

	
15.
	
ASSIGNMENTS
	
13

	
 
	
 
	
 

	
16.
	
SET-OFF
	
13

	
 
	
 
	
 

	
17. 
	
SUBSEQUENT SECURITY INTERESTS
	
13

	
 
	
 
	
 

	
18. 
	
EXPENSES
	
13

	
 
	
 
	
 

	
19. 
	
MISCELLANEOUS
	
14

	
 
	
 
	
 

	
20.
	
LAW AND JURISDICTION
	
14

	
 
	
 
	
 

	
SCHEDULE 1
	
1

	
 
	
 
	
 

	
SCHEDULE 2
	
2

	
 
	
 
	
 

	
SCHEDULE 3
	
1

	
 
	
 
	
 

	
SCHEDULE 4
	
2

	
 
	
 
	
 

	
SCHEDULE 5
	
3

	
 
	
 
	
 

	
SCHEDULE 6
	
4

	
 
	
 
	
 

 

 

 

i

5694219.3 M5844.L07947

 

 

	
(1)
	
TRILINC GLOBAL IMPACT FUND CAYMAN, LTD, an exempted company incorporated with limited liability under the laws of the Cayman Islands with company number 310829 and having its registered office at PO Box 309,Ugland House, Grand Cayman, KY1-1104, Cayman Islands (the "Mortgagor"); and

	
(2)
	
MICRO, SMALL & MEDIUM ENTERPRISES BONDS S.A., LUXEMBOURG, acting on behalf of its Compartment Series 88, a public limited company incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 20, rue de Ia Paste, L-2346 Luxembourg, Grand Duchy of Luxembourg (the "Mortgagee").

IT IS AGREED

	
1.
	
DEFINITIONS AND INTERPRETATION

	
1.1
	
In this Mortgage, unless the context otherwise requires, words and expressions which are capitalised but not defined herein shall have the same meanings as are given to them in the Loan Agreement. In addition, the following definitions shall apply:

"Business Day" has the meaning ascribed to such term in the Loan Agreement. 

"Companies Law" means the Companies Law (2016 Revision) of the Cayman Islands.

"Company" means each company whose shares are being secured pursuant to this Mortgage and who is listed in Column A of Appendix A.

"Enforcement Notice" has the meaning given to it in Clause 7.1.

"Event of Default" means the declaration or the occurrence of an Event of Default as defined in the Loan Agreement and/or the failure by the Mortgagor to observe or perform any covenant or agreement contained in this Mortgage or any default in the payment of any other Secured Obligation.

"Finance Documents" has the meaning ascribed to such term in the Loan Agreement.

"Loan Agreement" means the loan agreement dated on or about the date hereof between the Mortgagee acting as lender, the Mortgagor as borrower and Symbiotics SA as servicer.

"Mortgage" means this share mortgage.

"Mortgaged Property" means the Mortgaged Shares and all rights, benefits and advantages now or at any time in the future deriving from or incidental to any of the Mortgaged Shares including:

	
 
	
(a) 
	
all dividends or other distributions (whether in cash, securities or other property), interest and other income paid or payable in relation to any Mortgaged Shares;

	
 
	
(b)
	
all shares, securities, rights, monies or other property whether certificated or uncertiflcated accruing,offered or issued at any time by way of redemption, conversion, exchange, substitution, preference, option, bonus issue or otherwise in respect of any Mortgaged Shares (including but not limited to proceeds of sale); and

	
 
	
(c)
	
all certificates or other evidence of title to any of the Mortgaged Shares now and from time to time hereafter deposited with the Mortgagee.

"Mortgaged Shares" means all the shares set out in Column B of Appendix A owned by the Mortgagor in each Company and any additional shares issued pursuant to Clause 6.8.

"Net Asset Value" means the net asset value of the Mortgaged Shares as calculated in accordance with Appendix B.

"Parties" means the parties to this Mortgage.

"Register of Directors" means the register of directors of each Company maintained by such Company in accordance with the Companies Law.

"Register of Mortgages and Charges" means the register of mortgages and charges of the Mortgagor maintained by the Mortgagor in accordance with section 54 of the Companies Law.

1

5694219.3 M5844.L07947

 

 

"Register of Members" means the register of members of each Company (including any applicable branch register and non-listed shares register) maintained by such Company in accordance with the Companies Law.

"Secured Obligations" means any and all moneys, liabilities and obligations (whether actual or contingent, whether now existing or hereafter arising, whether or not for the payment of money and including any obligation or liability to pay damages) from time to time owing to the Mortgagee by the Mortgagor.

"Security Interest" means:

	
 
	
(a)
	
a mortgage, charge, pledge, lien, assignment by way of security or other encumbrance or security arrangement (including any hold back or "flawed asset" arrangement) securing any obligation of any person;

	
 
	
(b)
	
any arrangement under which money or claims to, or the benefit of, a bank or other account may be applied, set off or made subject to a combination of accounts so as to effect discharge of any sum owed or payable to any person;

	
 
	
(c)
	
any other type of arrangement having a similar effect;or

	
 
	
(d)
	
agreements to create the foregoing.

"Security Period" means the period commencing on the date of execution of this Mortgage and terminating upon discharge of the security created by this Mortgage by payment in full of the Secured Obligations.

	
1.2 
	
In construing this Mortgage, unless otherwise specified:

	
 
	
(a)
	
references to any Party shall be construed so as to include that Party's respective successors in title, permitted assigns and permitted transferees;

	
 
	
(b) 
	
"including" and "in particular" shall not be construed restrictively but shall mean respectively "including, without prejudice to the generality of the foregoing" and "including without limitation", and "in particular, but without prejudice to the generality of the foregoing";

	
 
	
(c)
	
references to a "person" shall be construed so as to include any individual, firm, company or other body corporate, government, state or agency of a state, local or municipal authority or government body or any joint venture, association or partnership (whether or not having separate legal personality); and in each case, its successors and assigns and persons deriving title under or through it, in whole or in part, and any person which replaces any party to any document in its respective role thereunder, whether by assuming the rights and obligations of the party being replaced or whether by executing a document in or substantially in the form of the document it replaces;

	
 
	
(d)
	
"variation" includes any variation, amendment, accession, novation, restatement, modification, assignment, transfer, supplement, extension, deletion or replacement however effected and "vary" and "varied" shall be construed accordingly;

	
 
	
(e)
	
"writing" includes facsimile transmission legibly received except in relation to any certificate, notice or other document which is expressly required by this Mortgage to be signed and "written" has a corresponding meaning;

	
 
	
(f) 
	
references to the "consent" of the Mortgagee shall be construed as the consent of the Mortgagee acting in its absolute discretion;

	
 
	
(g)
	
references to this Mortgage or to any other document include references to this Mortgage or such other document as varied from time to time, even if changes are made to:

	
 
	
(i)
	
the composition of the Parties to this Mortgage or such other document or to the nature or amount (including any increase) of any facilities made available or liability assumed under such other document; or

	
 
	
(ii)
	
the nature or extent of any obligations under such other document;

	
 
	
(h)
	
references to uncertificated shares are to shares the title to which can be transferred by means of an electronic or other entry and references to certificated shares are to shares which are not uncertificated shares;

	
 
	
(i)
	
references to the singular shall include the plural and vice versa and references to the masculine shall include the feminine or neuter and vice versa;

	
 
	
(j)
	
references to clauses and schedules are to clauses of, and schedules to, this Mortgage;

2

5694219.3 M5844.L07947

 

 

	
 
	
(k)
	
references to any statute or statutory provision shall be construed as a reference to the same as it may have been, or may from time to time be amended, modified or re­ enacted;

	
 
	
(I)
	
headings and titles are for convenience only and do not affect the interpretation of this Mortgage; and

	
 
	
(m)
	
an Event of Default is "continuing" if it has not been remedied or waived.

	
2. 
	
REPRESENTATION AND WARRANTIES

	
2.1 
	
The Mortgagor hereby represents and warrants to the Mortgagee on the date of this Mortgage that:

	
 
	
(a)
	
it has been duly incorporated and registered as an exempted company with limited liability under the Companies Law and is validly existing and in good standing under the laws of the Cayman Islands;

	
 
	
(b)
	
 it has the power to own its assets and carry on its business as it is being conducted; 

	
 
	
(c)
	
it is the sole legal and beneficial owner of the Mortgaged Property free from any Security Interest (other than that created by this Mortgage) or other interest and any options or rights of pre-emption;

	
 
	
(d)
	
the Mortgaged Shares represent the required proportion of the issued shares of each relevant Company to satisfy the provisions of Clause 6.B(a);

	
 
	
(e)
	
any Mortgaged Shares are, or will be when mortgaged and charged, duly authorised, validly issued, fully paid, non-assessable, freely transferable and constitute shares in the capital of a Cayman Islands exempted company.  To the extent they are in existence there are no moneys or liabilities outstanding or payable in respect of any such shares nor will there be any and they have not been redeemed nor cancelled in any way nor will they be;

	
 
	
(f)
	
no person has or is entitled to any conditional or unconditional option, warrant or other right to subscribe for, purchase or otherwise acquire any issued or unissued shares, or any interest in shares, in the capital of any of the Companies;

	
 
	
(g)
	
the Mortgaged Shares are freely transferable on the books of each relevant Company and no consents or approvals are required in order to register a transfer of the Mortgaged Shares save as required pursuant to the Companies Law and the memorandum and articles of the relevant Company;

	
 
	
(h)
	
the Mortgaged Shares are not issued with any preferred, deferred or other special rights or restrictions whether in regard to dividends, voting, return of any amount paid on account of shares or otherwise which are not expressly set out in the memorandum and articles of association of each Company;

	
 
	
(i)
	
there are no covenants, agreements, conditions, interest, rights or other matters whatsoever which adversely affect the Mortgaged Property;

	
 
	
(j)
	
it has not received any notice of an adverse claim by any person in respect of the ownership of the Mortgaged Property or any interest in the Mortgaged Property;

	
 
	
(k)
	
it has full power and authority to:

	
 
	
(i) 
	
execute and deliver this Mortgage and the other Finance Documents to which it is a party;

	
 
	
(ii)
	
be the legal and beneficial owner of the Mortgaged Property; and

	
 
	
(iii)
	
comply with the provisions of, and perform all its obligations under this Mortgage and the other Finance Documents to which it is a party;

	
 
	
(I)
	
it has duly executed and delivered this Mortgage and the other Finance Documents to which it is a party;

	
 
	
(m)
	
the execution and performance of its obligations and liabilities under this Mortgage and each other Finance Document to which it is a party will not:

	
 
	
(i)
	
contravene any law or regulation or any order of any governmental or other official authority, body or agency or any judgment, order or decree of any court having jurisdiction over it;

	
 
	
(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 it is a party or any licence or other authorisation to which it is subject or by which it or any of its property is bound; or

	
 
	
(iii)
	
 contravene or conflict with any provision of its memorandum and articles of association;

3

5694219.3 M5844.L07947

 

 

	
 
	
(n)
	
it has not taken any action nor have any steps been taken or legal proceedings been started or threatened in writing against it for:

	
 
	
(i)
	
winding up, dissolution or reorganisation;

	
 
	
(ii)
	
the enforcement of any Security Interest over its assets; or

	
 
	
(iii)
	
the appointment of a liquidator, receiver, administrative receiver, administrator, trustee or similar officer of it or of any or all of its assets;

	
 
	
(o)
	
it is not in breach (nor would be in breach with the giving of notice, passing of time, or satisfaction of any other condition) or in default under any deed, instrument or any agreement to which it is a party or which is binding on it or any of its assets;

	
 
	
(p)
	
no action, litigation, arbitration or administrative proceeding has been commenced or is pending or threatened in writing against it, nor is there subsisting any unsatisfied judgment or award given against it by any court, board of arbitration or other body;

	
 
	
(q)
	
all licences, consents, exemptions, clearance filings, registration, payments of taxes, notarisation and authorisations as are or may be necessary or desirable for the proper conduct of its business, trade, and ordinary activities and for the performance and discharge of its obligations and liabilities under this Mortgage and each other Finance Document to which it is a party and which are required in connection with the execution, delivery, validity, enforceability or admissibility in evidence of this Mortgage and each other Finance Document to which it is a party and the creation of security over the Mortgaged Property have been obtained and are in full force and effect;

	
 
	
(r)
	
it has not taken any action whereby the rights attaching to the Mortgaged Property are altered or diluted save to the extent such alteration or dilution is expressly permitted under this Mortgage or any other Finance Document;

	
 
	
(s)
	
it has taken all corporate and other action required to approve its execution, delivery, performance and enforceability of this Mortgage and each other Finance Document to which it is a party; and

	
 
	
(t)
	
this Mortgage is effective to create a valid and enforceable equitable mortgage and fixed charge upon the Mortgaged Property in favour of the Mortgagee ranking in priority to the interests of any of its creditors or any liquidator (or similar officer) appointed in respect of it, except where any priority has been disclosed in writing to the Mortgagee.

	
2.2 
	
The Mortgagor also represents and warrants to and undertakes with the Mortgagee that the foregoing representations and warranties (other than that in Clause 2.1(d)) will be true and accurate throughout the continuance of this Mortgage with reference to the facts and circumstances subsisting from time to time.

	
3. 
	
COVENANT TO PAY

	
3.1 
	
The Mortgagor hereby covenants with the Mortgagee as primary obligor and not merely as surety that it will pay and discharge the Secured Obligations when due in accordance with the terms of the Finance Documents, or if they do not specify a time for payment, immediately on demand by the Mortgagee.

	
4. 
	
SECURITY

	
4.1 
	
As a continuing security for the discharge and/or payment of the Secured Obligations, the Mortgagor as legal and beneficial owner hereby:

	
 
	
(a)
	
mortgages in favour of the Mortgagee by way of a first equitable mortgage the Mortgaged Shares; and

	
 
	
(b)
	
charges in favour of the Mortgagee, by way of a first fixed charge, all of its right, title and interest in and to the Mortgaged Property including all benefits, present and future, actual and contingent accruing in respect of the Mortgaged Property (to the extent not effectively mortgaged under Clause 4.1(a)).

	
4.2 
	
The Mortgagor hereby agrees to deliver, or cause to be delivered, to the Mortgagee on the date hereof:

	
 
	
(a)
	
the corporate documents, resolutions and authorities of the Mortgagor required to authorise the execution of this Mortgage;

	
 
	
(b)
	
executed but undated share transfer certificates in respect of the Mortgaged Shares in favour of the Mortgagee or its nominees (as the Mortgagee shall direct) in the form set out in Schedule 1 to this Mortgage and any other documents which from time to time may be requested by the Mortgagee in order to enable the Mortgagee or its nominees to be registered as the owner or otherwise obtain legal title to the Mortgaged Shares;

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(c)
	
share certificates representing the Mortgaged Shares, a certified copy of the Register of Members showing the Mortgagor as registered owner of the Mortgaged Shares and a certified copy of the Register of Directors;

	
 
	
(d)
	
an executed irrevocable proxy and an executed irrevocable power of attorney made in respect of the Mortgaged Shares in favour of the Mortgagee in respect of all general meetings and written resolutions of each Company respectively in the form set out in Schedule 2 to this Mortgage;

	
 
	
(e)
	
executed but undated letters of authority to date the written resolutions listed in Clause 4.2(g) from each of the directors and officers of each Company in the form set out in Part I Schedule 3 to this Mortgage;

	
 
	
(f)
	
an executed irrevocable deed of undertaking and confirmation from each Company to the Mortgagee in the form set out in Schedule 4 to this Mortgage;

	
 
	
(g)
	
executed but undated written resolutions of all the directors of each Company in the form set out in Schedule 5 to this Mortgage; and

	
 
	
(h)
	
an executed irrevocable letter of instructions from each Company to its registered office provider in the form set out in Schedule 6 of this Mortgage (which executed letter shall be delivered by, or on behalf of, each Company to its registered office provider immediately after execution of this Mortgage and promptly thereafter and in any event no later than seven Business Days from the date of execution of this Mortgage, the Mortgagor shall deliver, or cause to be delivered, to the Mortgagee a copy of such letter signed by the registered office provider of each Company acknowledging, and agreeing to the terms of, such letter).

	
4.3
	
The Mortgagor will procure that there shall be no change in the registered office or registered office provider, without the prior consent in writing of the Mortgagee.

	
4.4 
	
The Mortgagor shall be permitted to increase or reduce its share capitalor issue further shares In any of the Companies, without the consent of the Mortgagee, provided that:

	
 
	
(a)
	
concurrently with the Mortgaged Shares ceasing to represent the majority shareholding of each of Company, the Mortgagor shall have procured the appointment of a security trustee to hold a security interest over all issued shares in the Companies for the benefit of all secured creditors of the Mortgagor on a pro-rata basis; and

	
 
	
(b)
	
subject to the Mortgaged Shares representing the majority holding of each Company at the time an Enforcement Notice is served, the Mortgagor shall procure that the Mortgaged Shares continue to represent the majority shareholding of each of Company,

	
4.5
	
The Mortgagor will deliver, or cause to be delivered, to the Mortgagee immediately upon (without prejudice to Clause 4.3) the issue of any further Mortgaged Shares, the items listed in Clauses 4.2(b) and 4.2(c) in respect of all such further Mortgaged Shares.

	
4.6 
	
The Mortgagor will deliver or cause to be delivered to the Mortgagee immediately upon (without prejudice to Clause 4.3):

	
 
	
(a)
	
the appointment of any further director or officer of any relevant Company, the items listed in Clause 4.2(e) (with respect to each newly appointed director or officer); and

	
 
	
(b)
	
the appointment or resignation of any director of any relevant Company, the item listed in Clause 4.2(g).

	
4.7 
	
The Mortgagor shall, immediately after execution of this Mortgage, instruct its registered office provider to enter particulars as required by the Companies Law of the security interests created pursuant to this Mortgage in the Register of Mortgages and Charges and immediately after entry of such particulars has been made, provide the Mortgagee with a certified true copy of the updated Register of Mortgages and Charges.

	
4.8 
	
The Mortgagor shall immediately after execution of this Mortgage procure that the following notation be entered on the Register of Members of each Company:

"[Number] [ordinary] shares issued as fully paid up and registered in the name of [Mortgagor Name] are mortgaged and charged in favour of [Mortgagee Name] pursuant to a share mortgage dated [Date], as amended from time to time."

	
4.9
	
The Mortgagor shall, immediately after execution of this Mortgage provide the Mortgagee with a certified true copy of the Register of Members with the annotation referred to in Clause 4.8.

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5.
	
RIGHTS IN RESPECT OF MORTGAGED PROPERTY

	
5.1 
	
Unless and until the delivery of an Enforcement Notice on the Mortgagor:

	
 
	
(a)
	
the Mortgagor shall be entitled to exercise all voting and consensual powers pertaining to the Mortgaged Property or any part thereof for all purposes not inconsistent with the terms of this Mortgage or the other Finance Documents; and

	
 
	
(b)
	
the Mortgagor shall be entitled to receive and retain any dividends, interest or other moneys or assets accruing on or in respect of the Mortgaged Property or any part thereof.

	
5.2 
	
The Mortgagor shall pay all calls, instalments or other payments and shall discharge all other obligations, which may become due in respect of any of the Mortgaged Property.  The Mortgagee may at any lime after delivery of an Enforcement Notice on the Mortgagor, if it thinks fit make such payments or discharge such obligations on behalf of the Mortgagor. Any sums so paid by the Mortgagee in respect thereof shall be repayable on demand and pending such repayment shall constitute part of the Secured Obligations.

	
5.3 
	
The Mortgagee shall not have any duty to ensure that any dividends, interest or other moneys and assets receivable in respect of the Mortgaged Property are duly and punctually paid, received or collected as and when the same become due and payable or to ensure that the correct amounts (if any) are paid or received on or in respect of the Mortgaged Property or to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property paid, distributed, accruing or offered at any time by way of redemption, bonus, rights, preference, or otherwise on or in respect of, any of the Mortgaged Property.

	
5.4 
	
The Mortgagor hereby authorises the Mortgagee to arrange at any time and from time to time prior to or after the delivery of an Enforcement Notice on the Mortgagor for the Mortgaged Property or any part thereof to be registered in the name of the Mortgagee (or its nominee) thereupon to be held, as so registered, subject to the terms of this Mortgage and at the request of the Mortgagee, the Mortgagor shall without delay procure that the foregoing shall be done.

	
6.
	
PRESERVATION OF SECURITY

	
6.1 
	
it is hereby agreed and declared that:

	
 
	
(a)
	
the security created by this Mortgage shall be held by the Mortgagee as a continuing security for the payment and discharge of the Secured Obligations and the security so created shall not be satisfied by any intermediate payment or satisfaction of any part of the Secured Obligations;

	
 
	
(b)
	
the Mortgagee shall not be bound to enforce any other security before enforcing the security created by this Mortgage;

	
 
	
(c)
	
no delay or omission on the part of the Mortgagee in exercising any right, power or remedy under this Mortgage shall impair such right, power or remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and remedies herein provided are cumulative and not exclusive of any rights, powers and remedies provided by law and may be exercised from time to time and as often as the Mortgagee may deem expedient; and

	
 
	
(d)
	
any waiver by the Mortgagee of any terms of this Mortgage shall only be effective if given in writing and then only for the purpose and upon the terms for which it is given.

	
6.2
	
Any settlement or discharge under this Mortgage between the Mortgagee and the Mortgagor shall be conditional upon no security or payment to the Mortgagee by any Company or the Mortgagor or any other person being avoided or set aside or ordered to be refunded or reduced by virtue of any provision or enactment relating to bankruptcy, Insolvency, administration or liquidation for the lime being in force and, if such condition is not satisfied, the Mortgagee shall be entitled to recover from the Mortgagor on demand the value of such security or the amount of any such payment as if such settlement or discharge had not occurred the payment of which amounts shall, for the avoidance of doubt, form part of the Secured Obligations, provided that demand shall be made within 6 months and 1 day of such payment being set aside, avoided or being refunded.

	
6.3 
	
The rights of the Mortgagee under this Mortgage and the security hereby constituted shall not be affected by any act, omission, matter or thing which, but for this provision, might operate to impair, affect or discharge such rights and security, in whole or in part, including, and whether or not known to or discoverable by any Company, the Mortgagor, the Mortgagee or any other person:

	
 
	
(a)
	
any time or waiver granted to or composition with any Company, the Mortgagor or any other person;

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(b)
	
the taking, variation, compromise, renewal or release of or refusal or neglect to perfect or enforce any rights, remedies or securities against any Company, the Mortgagor or any other person;

	
 
	
(c)
	
any legal limitation, disability, incapacity or other circumstances relating to any Company, the Mortgagor or any other person;

	
 
	
(d)
	
any amendment or supplement to any Finance Document or document or security (including any amendment the effect of which is to change the nature or amount of any facilities made available thereunder or to change the nature or extent of any obligations thereunder);

	
 
	
{e)
	
the dissolution, liquidation, amalgamation, reconstruction or reorganisation of any Company, the Mortgagor or any other person; or

	
 
	
(f)
	
the unenforceability, invalidity or frustration of any obligations of any Company, the Mortgagor or any other person under any Finance Document or any other document or security.

	
6.4
	
Until the Secured Obligations have been unconditionally and irrevocably satisfied and discharged in full to the satisfaction of the Mortgagee, the Mortgagor shall not by virtue of any payment made hereunder on account of the Secured Obligations or by virtue of any enforcement by the Mortgagee of its rights under, or the security constituted by, this Mortgage or any Finance Document or by virtue of any relationship between or transaction involving the Mortgagor and/or any Company (whether such relationship or transaction shall constitute the Mortgagor a creditor of any of the Companies, a guarantor of the obligations of any of the Companies or in part subrogated to the rights of others against any of the Companies or otherwise howsoever and whether or not such relationship or transaction shall be related to, or in connection with, the subject matter of this Mortgage):

	
 
	
(a)
	
exercise any rights of subrogation against a Company in relation to any rights, security or moneys held or received or receivable by the Mortgagee or any person;

	
 
	
(b)
	
exercise any right of set-off or counterclaim against a Company;

	
 
	
(c)
	
receive, claim or have the benefit of any payment, distribution, security or indemnity from a Company; or

	
 
	
(d)
	
unless so directed by the Mortgagee (when the Mortgagor will prove in accordance with such directions), claim as a creditor of any of the Companies or any such co-surety in competition with the Mortgagee.

The Mortgagor shall hold in trust for the Mortgagee and forthwith pay or transfer (as appropriate) to the Mortgagee any such payment (including an amount to any such set-off), distribution or benefit of such security, indemnity or claim in fact received by it.

	
6.5
	
Until the Secured Obligations have been unconditionally and irrevocably satisfied and discharged in full to the satisfaction of the Mortgagee, the Mortgagee may at any time keep in a separate account or accounts (without liability to pay interest thereon) in the name of the Mortgagee for as long as it may think fit, any moneys received, recovered or realised under this Mortgage or under any other guarantee, security or agreement relating in whole or in part to the Secured Obligations without being under any intermediate obligation to apply the same or any part thereof in or towards the discharge of the Secured Obligations or any other amount owing or payable under the Finance Documents; provided that the Mortgagee shall be obliged to apply amounts standing to the credit of such account or accounts once the aggregate amount held by the Mortgagee in any such account or accounts opened pursuant hereto is sufficient to satisfy the outstanding amount of the Secured Obligations in full.

	
6.6 
	
The Mortgagor shall not, without the prior written consent of the Mortgagee:

	
 
	
(a)
	
cause or permit any rights attaching to the Mortgaged Property to be varied or abrogated;

	
 
	
(b)
	
cause or permit any of the Mortgaged Property to be consolidated, sub-divided or converted or the capital of any of the Companies to be re-organised, exchanged or repaid; or

	
 
	
(c)
	
cause or permit anything to be done which may depreciate, jeopardise or otherwise prejudice the value of the security hereby given, save as permitted by the Finance Documents.

	
6.7
	
The Mortgagor hereby covenants that during the Security Period it will remain the legal and beneficial owner of the Mortgaged Property (subject to the Security Interests hereby created) and that it will not:

	
 
	
(a)
	
create or suffer the creation of any Security Interests (other than those created by this Mortgage) or any other interest on or in respect of the whole or any part of the Mortgaged Property or any of its interest therein; or

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(b)
	
sell, assign, transfer or otherwise dispose of any of its interest in the Mortgaged Property without the prior consent in writing of the Mortgagee; or

	
 
	
(c)
	
permit the Register of Members for any of the Companies to be maintained outside of the Cayman Islands or by a service provider other than the person to whom the letter of instructions in Schedule 6 has been given (unless in the latter case, the relevant Company has executed and delivered a new letter of instruction in substantially the form of Schedule 6 to the new service provider) and the new service provider signs a copy of such letter to acknowledge, and agree to the terms of, such letter and a copy of such acknowledgment is delivered by or on behalf of the Company to the Mortgagee within seven Business Days from the date of the appointment of the new service provider.

	
6.8
	
The Mortgagor hereby covenants that during the Security Period:

	
 
	
(a)
	
1the aggregate Net Asset Value (calculated in accordance with Appendix B) of the Mortgaged Shares is not less than the outstanding amount due and payable under the Loan Agreement and in the event that the aggregate Net Asset Value is less than the amount due and payable under the Loan Agreement, the Mortgagor shall provide additional security by procuring that each Company issues further shares to the Mortgagor or such other additional security as may be agreed between the Mortgagor and Mortgagee at such time; and

	
 
	
(b)
	
it shall provide the Mortgagee with a certificate on a quarterly basis confirming (a) above, together with quarterly accounts of each of the Companies, signed by their respective directors.

	
6.9
	
The Mortgagor shall remain liable to perform all the obligations assumed by it in relation to the Mortgaged Property and the Mortgagee shall be under no obligation of any kind whatsoever in respect thereof or be under any liability whatsoever in the event of any failure by the Mortgagor to perform its obligations in respect thereof.

	
6.10
	
The Mortgagor shall ensure that it shall not, without the prior written consent of the Mortgagee, use its voting rights to permit any of the Companies to amend its memorandum or articles of association in a way which could be expected to adversely affect the interests of the Mortgagee.

	
6.11
	
The Mortgagor shall procure that no Company shall:

	
 
	
(a)
	
create or permit to subsist any Security Interest upon the whole or any part of its assets, except as permitted by the Finance Documents;

	
 
	
(b)
	
register any transfer of the Mortgaged Shares to any person (except to the Mortgagee or its nominees pursuant to the provisions of this Mortgage);

	
 
	
(c)
	
issue any share certificate or replacement share certificates in respect of any of the Mortgaged Shares, other than to the Mortgagee or its nominee;

 

1 This notional amount of the Mortgaged Shares is $1/share. This covenant is not required in light of the NAY covenant above.

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(d)
	
continue its existence under the laws of any jurisdiction other than the Cayman Islands; 

	
 
	
(e) 
	
do anything which might prejudice its status as an exempted company;

	
 
	
(f)
	
 issue, allot or grant warrants or options with respect to any additional shares;

	
 
	
(g)
	
exercise any rights of forfeiture over any of the Mortgaged Shares; or

	
 
	
(h)
	
purchase, redeem, otherwise acquire, cancel, sub-divide, amalgamate, reclassify or otherwise restructure any of the Mortgaged Property,

during the Security Period without the prior written consent of the Mortgagee.

	
6.12 
	
The Mortgagor shall procure that each Company shall irrevocably consent to any transfer of the Mortgaged Shares by the Mortgagee or its nominee to any other person pursuant to the exercise of the Mortgagee's rights under this Mortgage, subject to compliance with all applicable laws, including the Companies Law.

	
6.13 
	
The Mortgagor shall not, without the prior written consent of the Mortgagee, participate in any vote concerning a members' liquidation or compromise in respect of any Company pursuant to section 116 of the Companies Law.

	
7.
	
ENFORCEMENT OF SECURITY

	
7.1
	
At any time after deliver of a notice from the Mortgagee to the Mortgagor of the occurrence of an Event of Default (an "Enforcement Notice"), the security hereby constituted shall become immediately enforceable and the rights of enforcement of the Mortgagee under this Mortgage shall be immediately exercisable upon and at any time thereafter and, without prejudice to the generality of the foregoing the Mortgagee without further notice to the Mortgagor may, whether acting on its own behalf or through a receiver or agent:

	
 
	
(a)
	
solely and exclusively exercise all voting and/or consensual powers pertaining to the Mortgaged Property or any part thereof and may exercise such powers in such manner as the Mortgagee may think fit;

	
 
	
(b)
	
date and present to any or all of the Companies or any other person any undated documents provided to it pursuant to Clause 4 or any other provision of this Mortgage;

	
 
	
(c)
	
receive and retain all dividends, interest or other moneys or assets accruing on or in respect of the Mortgaged Property or any part thereof, such dividends, interest or other moneys or assets to be held by the Mortgagee, as additional security mortgaged and charged under and subject to the terms of this Mortgage and any such dividends, interest and other moneys or assets received by the Mortgagor after such time shall be held in trust by the Mortgagor for the Mortgagee and paid or transferred to the Mortgagee on demand;

	
 
	
(d)
	
take possession of, get in, assign, exchange, sell, transfer, grant options over or otherwise dispose of the Mortgaged Property or any part thereof at such place and in such manner and at such price or prices as the Mortgagee may deem fit, and thereupon the Mortgagee shall have the right to deliver, assign and transfer in accordance therewith the Mortgaged Property so sold, transferred, granted options over or otherwise disposed of including by way of changing the ownership of the Mortgaged Shares as shown on the Register of Members;

	
 
	
(e)
	
borrow or raise money either unsecured or on the security of the Mortgaged Property (either in priority to the Mortgage or otherwise);

	
 
	
(f)
	
settle, adjust, refer to arbitration, compromise and arrange any claims, accounts, disputes, questions and demands with or by any person who is or claims to be a creditor of the Mortgagor or relating to the Mortgaged Property;

	
 
	
(g)
	
bring, prosecute, enforce, defend and abandon actions, suits and proceedings in relation to the Mortgaged Property or any business of the Mortgagor;

	
 
	
(h)
	
redeem any security (whether or not having priority to the Mortgage) over the Mortgaged Property and to settle the accounts of any person with an interest in the Mortgaged Property;

	
 
	
(i)
	
exercise and do (or permit the Mortgagor or any nominee of the Mortgagor to exercise and do) all such rights and things as the Mortgagee would be capable of exercising or doing if it were the absolute beneficial owner of the Mortgaged Property;

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(j)
	
do anything else it may think fit for the realisation of the Mortgaged Property or incidental to the exercise of any of the rights conferred on the Mortgagee under or by virtue of any document to which the Mortgagor is party; and

	
 
	
(k)
	
exercise all rights and remedies afforded to it under this Mortgage and applicable law.

	
7.2
	
The Mortgagee shall not be obliged to make any enquiry as to the nature or sufficiency of any payment received by it under this Mortgage or to make any claim or to take any action to collect any moneys assigned by this Mortgage or to enforce any rights or benefits assigned to the Mortgagee by this Mortgage or to which the Mortgagee may at any time be entitled hereunder.

	
7.3 
	
Upon any sale of the Mortgaged Property or any part thereof by the Mortgagee, the purchaser shall not be bound to see or enquire whether the Mortgagee's power of sale has become exercisable in the manner provided in this Mortgage and the sale shall be deemed to be within the power of the Mortgagee, and the receipt of the Mortgagee for the purchase money shall effectively discharge the purchaser who shall not be concerned with the manner of application of the proceeds of sale or be in any way answerable therefor.

	
7.4
	
Any money received or realised under the powers conferred by this Mortgage shall be paid or applied in the following order of priority, subject to the discharge of any prior-ranking claims:

	
 
	
(a)
	
FIRST: in or towards the payment of all costs, expenses, fees and remuneration of the Mortgagee or any receiver incurred pursuant to or in connection with the Finance Documents;

	
 
	
(b)
	
SECOND: in or towards satisfaction of the Secured Obligations; and

	
 
	
(c)
	
THIRD: as to the surplus (if any), to the person or persons entitled to it.

	
7.5
	
Until all Secured Obligations have been unconditionally and irrevocably paid and discharged in full, the Mortgagee may refrain from applying or enforcing any other moneys, security or rights held by it in respect of the Secured Obligations or may apply and enforce such moneys, security or rights in such manner and in such order as it shall decide in its unfettered discretion.

	
7.6
	
Neither the Mortgagee nor its agents, managers, officers, employees, delegates and advisers shall be liable for any claim, demand, liability, loss, damage, cost or expense incurred or arising in connection with the exercise or purported exercise of any rights, powers and discretions hereunder in the absence of dishonesty or willful default.

	
7.7
	
The Mortgagee shall not by reason of the taking of possession of the whole or any part of the Mortgaged Property or any part thereof be liable to account as mortgagee-in-possession or for anything except actual receipts or be liable for any loss upon realisation or for any default or omission for which a mortgagee-in-possession might be liable, other than as a consequence of its dishonestly or willful default.

	
8.
	
APPOINTMENT OF A RECEIVER

	
8.1
	
At any time after:

	
 
	
(a)
	
the declaration or occurrence of an Event of Default; or

	
 
	
(b)
	
a request has been made by the Mortgagor to the Mortgagee for the appointment of a receiver over its assets or in respect of the Mortgagor, 

then notwithstanding the terms of any other agreement between the Mortgagor and any person, the Mortgagee may (unless precluded by law) appoint in writing any person or persons with experience in being a receiver in a professional capacity to so be a receiver or receiver and manager of all or any part of the Mortgaged Property as the Mortgagee may choose in its entire discretion.

	
8.2
	
Where more than one receiver is appointed, the appointees shall have power to act jointly or separately unless the Mortgagee shall specify to the contrary.

	
8.3
	
The Mortgagee may from time to time determine the remuneration of a receiver.

	
8.4
	
The Mortgagee may remove a receiver from all or any of the Mortgaged Property of which he is the receiver and after the receiver has vacated office or ceased to act in respect of any of the Mortgaged Property, appoint a further receiver over all or any of the Mortgaged Property in respect of which he shall have ceased to act.

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8.5
	
Such an appointment of a receiver shall not preclude:

	
 
	
(a)
	
the Mortgagee from making any subsequent appointment of a receiver over all or any Mortgaged Property over which a receiver has not previously been appointed or has ceased to act; or

	
 
	
(b)
	
the appointment of an additional receiver to act while the first receiver continues to act.

	
8.6
	
The receiver shall be the agent of the Mortgagor (which, absent willful default, negligence and dishonesty, shall be solely liable for his acts, defaults and remuneration).  The receiver shall not at any time become the agent of the Mortgagee.

	
9.
	
POWERS OF A RECEIVER

	
9.1
	
In addition to those powers conferred by law, a receiver shall have and be entitled to exercise in relation to the Mortgagor all the powers set out below:

	
 
	
(a)
	
to exercise all rights of the Mortgagee under or pursuant to this Mortgage including all voting and other rights attaching to the Mortgaged Property;

	
 
	
(b)
	
to make any arrangement or compromise with others as he shall think fit;

	
 
	
(c)
	
to appoint managers, officers and agents for the above purposes at such remuneration as the receiver may determine;

	
 
	
(d)
	
in relation to the Mortgaged Property, to redeem any prior encumbrance and settle and pass the accounts of the encumbrancer and any accounts so settled and passed shall (subject to any manifest error) be conclusive and binding on the Mortgagor and the money so paid shall be deemed an expense properly incurred by the receiver;

	
 
	
(e)
	
to pay the proper administrative charges in respect of time spent by his agents and employees in dealing with matters raised by the receiver or relating to the receivership of the Mortgagor; and

	
 
	
(f)
	
to do all such other acts and things as may be considered by the receiver to be incidental or conducive to any of the above matters or powers or otherwise incidental or conducive to the preservation, improvement or realisation of the Mortgaged Property or the value thereof.

	
10.
	
FURTHER ASSURANCES

	
10.1
	
The Mortgagor shall at its own expense promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Mortgagee may specify and in such form as the Mortgagee may reasonably require in order to:

	
 
	
(a)
	
perfect or protect the security created or intended to be created under or evidenced by this Mortgage (which may include the execution of a legal mortgage, charge, assignment or other security over all or any of the assets which are, or are intended to be, the subject of this Mortgage) or for the exercise of any rights, powers and remedies of the Mortgagee provided by or pursuant to this Mortgage, the Finance Documents or bylaw;

	
 
	
(b)
	
confer on the Mortgagee security over any property and assets of the Mortgagor located in any jurisdiction which is (to the extent permitted by local law) equivalent or similar to the security intended to be conferred by or pursuant to this Mortgage; or

	
 
	
(c)
	
following delivery of an Enforcement Notice on the Mortgagor, facilitate the realisation of the assets which are, or are intended to be, the subject of this Mortgage.

	
10.2
	
Without limiting the other provisions of this Mortgage, the Mortgagor shall at its own expense take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any security conferred or intended to be conferred on the Mortgagee by or pursuant to this Mortgage.

	
11.
	
INDEMNITIES

	
11.1
	
The Mortgagor will indemnify and hold harmless the Mortgagee, any receiver and each agent or attorney appointed under or pursuant to this Mortgage from and against any and all expenses, claims, liabilities, losses, taxes, costs, duties, fees and charges suffered, incurred or made by the Mortgagee or such agent or attorney:

	
 
	
(a)
	
in the exercise or purported exercise of any rights, powers or discretions vested in them pursuant to this Mortgage;

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(b)
	
in the preservation or enforcement of the Mortgagee's rights under this Mortgage or the priority thereof;

	
 
	
(c)
	
on the release of any part of the Mortgaged Property from the security created by this Mortgage; or

	
 
	
(d)
	
arising out of any breach by the Mortgagor of any term of this Mortgage, 

and the Mortgagee or such receiver, agent or attorney may retain and pay all sums in respect of the same out of money received under the powers conferred by this Mortgage. All amounts suffered, incurred or paid by the Mortgagee or such receiver, agent or attorney or any of them shall be recoverable on a full indemnity basis provided that nothing in this Clause 11.1 shall require the Mortgagor to indemnify and hold harmless the Mortgagee from and against any expenses, claims, liabilities, losses, taxes, costs, duties, fees and charges suffered, incurred or made by the Mortgagee, any receiver, any agent or any attorney as a result of the Mortgagee's, receiver's, agent's or attorney's dishonesty, negligence or willful default.

	
11.2
	
If, under any applicable law or regulation, and whether pursuant to a judgment being made or registered against the Mortgagor or the bankruptcy or liquidation of the Mortgagor or for any other reason any payment under or in connection with this Mortgage is made or fails to be satisfied in a currency (the "Payment Currency") other than the currency in which such payment is due under or in connection with this Mortgage (the "Contractual Currency"), then to the extent that the amount of such payment actually received by the Mortgagee when converted into the Contractual Currency at the rate of exchange, falls short of the amount due under or in connection with this Mortgage, the Mortgagor, as a separate and independent obligation, shall indemnify and hold harmless the Mortgagee against the amount of such shortfall. For the purposes of this Clause 11.2, "rate of exchange" means the rate at which the Mortgagee is able on or about the date of such payment to purchase the Contractual Currency with the Payment Currency and shall take into account any premium and other costs of exchange with respect thereto.

	
11.3
	
All payments to be made to the Mortgagee under this Mortgage shall be made free and clear of and without deduction for or on account of tax unless the Mortgagor is required to make such payment subject to the deduction or withholding of tax, in which case the sum payable by the Mortgagor in respect of which such deduction or withholding is required to be made shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the person on account of whose liability to tax such deduction or withholding has been made receives and retains {free from any liability in respect of any such deduction or withholding) a net sum equal to the sum which it would have received and so retained had no such deduction or withholding been made or required to be made.

	
12.
	
POWER OF ATTORNEY

	
12.1
	
The Mortgagor, by way of security and in order more fully to secure the performance of its obligations hereunder, hereby irrevocably appoints the Mortgagee and the persons deriving title under it (including, but without any limitation, any receiver) jointly and also severally (with full power of substitution and delegation) to be its attorney-in-fact:

	
 
	
(a)
	
to execute and complete in favour of the Mortgagee or its nominees or of any purchaser any documents which the Mortgagee may from time to time require for perfecting the Mortgagee's title to, for vesting any of the assets and property hereby mortgaged or charged in the Mortgagee or its nominees or in any purchaser or for any of the purposes contemplated in Clause 7.1 hereof;

	
 
	
(b)
	
to give effectual discharges for payments, to take and institute on non-payment (if the Mortgagee in its sole discretion so decides) all steps and proceedings in the name of the Mortgagor or of the Mortgagee for the recovery of such moneys, property and assets hereby mortgaged or charged;

	
 
	
(c)
	
to agree accounts and make allowances and give time or other indulgence to any surety or other person liable;

	
 
	
(d)
	
so as to enable the Mortgagee to carry out in the name of the Mortgagor any obligation imposed on the Mortgagor by this Mortgage (including the execution and delivery of any deeds, charges, assignments or other security and any transfers of the Mortgaged Property and the exercise of all the Mortgagor's rights and discretions in relation to the Mortgaged Property);

	
 
	
(e)
	
so as to enable the Mortgagee and any receiver or other person to exercise, or delegate the exercise of, any of the rights, powers and authorities conferred on them by or pursuant to this Mortgage or by law (including the exercise of any right of a legal and beneficial owner of the Mortgaged Property); and

	
 
	
(f)
	
generally for it and in its name and on its behalf and as its act and deed or otherwise execute, seal and deliver and otherwise perfect and do any such legal assignments and other assurances, charges, authorities and documents over the moneys, property and assets hereby charged, and all such deeds, instruments, acts and things which may be required for the full exercise of all or any of the powers conferred or which may be deemed proper on or in connection with any of the purposes aforesaid.

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12.2
	
Notwithstanding any other provision of Clause 12.1, such power shall not be exercisable by or on behalf of the Mortgagee as the case may be until:

	
 
	
(a)
	
an Enforcement Notice has been delivered on the Mortgagor; or

	
 
	
(b)
	
the Mortgagor has failed to comply with Clause 10.

	
12.3
	
The power hereby conferred shall be a general power of attorney and the Mortgagor hereby ratifies and confirms and agrees to ratify and confirm any instrument, act or thing which any attorney appointed pursuant hereto may execute or do. In relation to the power referred to herein, the exercise by the Mortgagee of such power shall be conclusive evidence of its right to exercise the same.

	
13.
	
RELEASE

	
13.1
	
Subject to Clause 13.2, upon discharge and satisfaction in full of the Secured Obligations, the Mortgagee shall (at the request and cost of the Mortgagor) execute such documents and do all such reasonable acts as may be necessary to release the Mortgaged Property from the security constituted by this Mortgage. Such release shall not prejudice the rights of the Mortgagee under Clause 11.

	
13.2
	
If the Mortgagee considers in good faith that any amount received in payment or purported payment of the Secured Obligations Is capable of being avoided or reduced by virtue of any insolvency or other similar laws (within a six month plus one (1) day period from such payment or purported payment):

	
 
	
(a)
	
the liability of the Mortgagor under this Mortgage and the security constituted by this Mortgage shall continue and such amount shall not be considered to have been irrevocably paid; and

	
 
	
(b)
	
the Mortgagee may keep any security held by it in respect of the Mortgagor's liability under the Finance Documents against any possible claim under insolvency law.  If a claim is made against the Mortgagee prior to the discharge of any such security, the Mortgagee may keep the security until that claim has finally been dealt with.

	
14.
	
NOTICES

	
14.1
	
Any notice or other communication given or made under or in connection with the matters contemplated by this Mortgage shall be in accordance with the provisions of clause 26 of the Loan Agreement.

	
15.
	
ASSIGNMENTS

	
15.1
	
This Mortgage shall be binding upon and shall endure to the benefit of the Mortgagor, the Mortgagee and each of their respective successors and (subject as hereinafter provided) assigns and references in this Mortgage to any of them shall be construed accordingly.

	
15.2
	
The Mortgagor may not assign or transfer all or any part of its rights and/or obligations under this Mortgage.

	
15.3
	
The Mortgagee may assign or transfer all or any part of its rights or obligations under this Mortgage to any assignee or transferee with the consent of the Mortgagor.

	
16.
	
SET-OFF

	
16.1
	
The Mortgagor authorises the Mortgagee (but the Mortgagee shall not be obliged to exercise such right), after the occurrence of an Enforcement Notice to set-off against the Secured Obligations any amount or other obligation (contingent or otherwise) owing by the Mortgagee to the Mortgagor.

	
17.
	
SUBSEQUENT SECURITY INTERESTS

	
17.1
	
If the Mortgagee at any time receives or is deemed to have received notice of any subsequent Security Interest affecting all or any part of the Mortgaged Property or any assignment or transfer of the Mortgaged Property which is prohibited by the terms of this Mortgage, all payments thereafter by or on behalf of the Mortgagor to the Mortgagee shall be treated as having been credited to a new account of the Mortgagor and not as having been applied in reduction of the Secured Obligations as at the time when the Mortgagee received such notice.

	
18.
	
EXPENSES

	
18.1
	
The Mortgagor shall pay to the Mortgagee on demand all reasonably incurred and documented costs, fees and expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred by the Mortgagee in connection with:

	
 
	
(a)
	
the negotiation, preparation and execution of this Mortgage;

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(b)
	
the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under this Mortgage or the priority hereof;

	
 
	
(c)
	
any variation of, or amendment or supplement to, any of the terms of this Mortgage; or

	
 
	
(d)
	
any consent or waiver required from the Mortgagee in relation to this Mortgage,

and in the case referred to In Clauses 18.1(c) and 18.1(d) regardless of whether the same is actually implemented, completed or granted, as the case may be.

	
18.2
	
The Mortgagor shall pay promptly all registration, stamp, documentary and other like duties and taxes to which this Mortgage may be subject or give rise and shall indemnify the Mortgagee on demand against any and all liabilities with respect to or resulting from any delay or omission on the part of the Mortgagor to pay any such duties or taxes.

	
19.
	
MISCELLANEOUS

	
19.1
	
The Mortgagee, at any time and from time to time, may delegate by power of attorney or in any other manner to any person or persons all or any of the powers, authorities and discretions which are for the time being exercisable by the Mortgagee under this Mortgage in relation to the Mortgaged Property or any part thereof. Any such delegation may be made upon such terms and be subject to such regulations as the Mortgagee may think fit. The Mortgagee shall not be in any way liable or responsible to the Mortgagor for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate provided the Mortgagee has acted reasonably In selecting such delegate.

	
19.2
	
If any of the clauses, conditions, covenants or restrictions (the "Provision") of this Mortgage or any deed or document emanating from it shall be found to be void but would be valid if some part thereof were deleted or modified, then the Provision shall apply with such deletion or modification as may be necessary to make it valid and effective.

	
19.3
	
This Mortgage (together with any documents referred  to herein) constitutes the whole agreement between the Parties relating to its subject matter and no variations hereof shall be effective unless made in writing and signed by each of the Parties.

	
19.4
	
Each document, instrument, statement, report, notice or other communication delivered in connection with this Mortgage shall be in English or where not in English shall be accompanied by a certified English translation which translation shall with respect to all documents of a contractual nature and all certificates and notices to be delivered hereunder be the governing version and upon which in all cases the Mortgagee shall be entitled to rely.

	
19.5
	
This Mortgage may be executed in counterparts each of which when executed and delivered shall constitute an original but all such counterparts together shall constitute one and the same instrument.

	
19.6
	
The Parties intend that this Mortgage takes effect as a deed notwithstanding the fact that the Mortgagee may only execute It under hand.

	
19.7
	
A person who is not a party to this Mortgage or other Finance Document shall not have any rights under the Contracts (Rights of Third Parties) Law, 2014 (the "CRTP Law") to enforce any term of this Mortgage.

	
19.8
	
Notwithstanding any term of this Mortgage or other Finance Document, the consent of or notice to any receiver, agent, attorney, delegate or other person who is not a party to this Mortgage or such other Finance Document shall not be required for any termination, rescission or agreement to any variation, waiver, assignment, novation, release or settlement under this Mortgage or such other Finance Document at any time.

	
20.
	
LAW AND JURISDICTION

	
20.1
	
This Mortgage shall be governed by and construed in accordance with the laws of the Cayman Islands and the Parties hereby irrevocably submit to the non-exclusive jurisdiction of the courts of the Cayman Islands, provided that nothing in this clause shall affect the right of the Mortgagee to serve process in any manner permitted by law or limit the right of the Mortgagee to take proceedings with respect to this Mortgage against the Mortgagor in any jurisdiction nor shall the taking of proceedings with respect to this Mortgage in any jurisdiction preclude the Mortgagee from taking proceedings with respect to this Mortgage in any other jurisdiction, whether concurrently or not.

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IN WITNESS whereof this Deed has been executed by the Parties on the day and year first above written.

 

 

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SCHEDULE 1

TRILINC GLOBAL IMPACT FUND•AFRICA, LTD. 

(THE "COMPANY")

SHARE TRANSFER CERTIFICATE

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SCHEDULE 2

TRILINC GLOBAL IMPACT FUND -AFRICA, LTD.

 IRREVOCABLE APPOINTMENT OF PROXY AND POWER OF ATTORNEY

We, TriLinc Global Impact Fund Cayman. Ltd., hereby irrevocably appoint Micro, Small & Medium

Enterprises Bonds S.A., Luxembourg, acting on behalf of its Compartment Series 88 as our:

	
1. 
	
proxy to vote at meetings of the Shareholders of TriLinc Global Impact Fund -Africa, Ltd. (the "Company") in respect of any existing or further shares in the Company which may have been or may from time to time be issued and/or registered in our name; and

	
2. 
	
duly authorised representative and duly appointed attorney-in-fact to sign resolutions in writing of the Company in respect of any existing or further shares in the Company which may have been or may from time to time be issued and/or registered in our name.

This proxy and this power of attorney are irrevocable by reason of being coupled with the interest of Micro, Small & Medium Enterprises Bonds S.A., Luxembourg, acting on behalf of its Compartment Series 88 as mortgagee of the aforesaid shares.

 

 

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SCHEDULE 3

PART I

LETTER OF AUTHORISATION FROM DIRECTOR

[Date]

Micro, Small & Medium Enterprises acting on behalf or its Compartment Series 88 Bonds S.A., Luxembourg,

Dear Sirs

SHARE MORTGAGE BETWEEN TRILINC GLOBAL IMPACT FUND CAYMAN,LTO. AND MICRO, SMALL & MEDIUM ENTERPRISES BONDS S.A.,LUXEMBOURG ACTING ON BEHALF OF ITS COMPARTMENT SERIES 88 DATED [DATE] (THE "MORTGAGE") IN RESPECT OF SHARES IN, AMONGST OTHERS,TRILINC GLOBAL IMPACT FUND•AFRICA,LTO. (THE "COMPANY")

I refer to the executed but undated written resolutions of all the directors of the Company signed by me provided in accordance with the Mortgage.

I hereby authorise you to date, deliver, and give full effect to the undated written resolutions referred to above in the event of delivery of an Enforcement Notice (as defined in the Mortgage).

I hereby authorise you to send the dated written resolutions to the Company's registered office.

I confirm that you may delegate the authority conferred by this letter to any of your successors and assigns as Mortgagee in relation to the mortgage and charge granted or to be granted over shares in the Company.

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SCHEDULE 4

DEED OF UNDERTAKING AND CONFIRMATION FROM EACH COMPANY TO THE MORTGAGEE 

TRILINC GLOBAL IMPACT FUND - AFRICA, LTD.

[Date]

Micro, Small & Medium Enterprises Bonds S.A., Luxembourg, acting on behalf of its Compartment Series 88 (the "Mortgagee")

Dear Sirs

TRILINC GLOBAL IMPACT FUND - AFRICA, LTD. (THE "COMPANY")

We refer to the equitable share mortgage in respect of Shares of, amongst others, the Company dated (Date] between TriLinc Global Impact Fund Cayman, Ltd. as mortgagor (the "Mortgagor") and the Mortgagee whereby, inter alia, the Mortgagor granted a mortgage and charge over the Mortgaged Property in favour of the Mortgagee (the "Mortgage").

Capitalised words and expressions used in this deed poll which are not expressly defined herein have the meanings ascribed to them in the Mortgage.

This deed of undertaking and confirmation is given pursuant to the Mortgage.

	
1.
	
For valuable consideration receipt of which is hereby acknowledged, the Company hereby irrevocably and unconditionally undertakes to register (and hereby permits the Mortgagee or its nominee(s), if [it][they] have custody of the original Register of Members to register) in the Register of Members any and all share transfers to the Mortgagee or its nominee in respect of the Mortgaged Shares submitted to the Company by the Mortgagee.

	
2. 
	
The Company hereby confirms that it has requested its registered office provider to make an annotation of the existence of the Mortgage and the security interests created thereby in the original Register of Members (if it retains the original or update its copy if it retains a copy) pursuant to the Mortgage.

	
3.
	
The Company hereby agrees to accept service of process on behalf of the Mortgagor pursuant to the Mortgage.

	
4.
	
The Company hereby confirms that the Register of Members provided to the Mortgagee pursuant to the Mortgage is a certified copy of the original Register of Members and it will not redesignate or otherwise seek to recreate the Register of Members.

THIS DEED POLL has been executed and delivered as a Deed Poll on the day and year first above

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SCHEDULE 5

TRILINC GLOBAL IMPACT FUND - AFRICA, LTD

WRITTEN RESOLUTIONS OF THE DIRECTORS

OF THE COMPANY DATED [LEFT UNDATED]

 

	
1.
	
THE COMPANY

	
1.1
	
Written resolution of all the directors made pursuant to the articles of association of the Company.

	
2.
	
SHARE TRANSFER

	
2.1
	
IT IS RESOLVED that the following transfer(s) of the shares of the Company be approved with immediate effect:

[to be left blank]

	
3.
	
REGISTER OF MEMBERS

	
3.1
	
IT IS RESOLVED that the Register of Members of the Company be updated to record the transfer of the shares to the transferee referred to above and the registered office provider of the Company be hereby authorised and instructed to:

	
 
	
(a)
	
update the original Register of Members if it retains the origin.al or update its copy of the Register of Members if it retains a copy of the Register of Members to record the transferee as the registered holder of the relevant shares; and

	
 
	
(b)
	
provide a copy of the updated Register of Members to the transferee.

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SCHEDULE 6

FORM OF LETTER OF INSTRUCTIONS FROM EACH COMPANY TO ITS REGISTERED OFFICE

PROVIDER

TRILINC GLOBAL IMPACT FUND -AFRICA, LTD. 

[Date]

Maples Corporate Services Limited

PO Box 309

Ugland House

South Church Street

George Town

Grand Cayman KY1-1104

Cayman Islands

cc: [Name and Address of Mortgagee]

Dear Sirs

TRILINC GLOBAL IMPACT FUND - AFRICA, LTD. (THE "COMPANY") -INSTRUCTIONS TO REGISTERED OFFICE PROVIDER

We hereby notify you that pursuant to a mortgage (the "Mortgage") dated []between Micro, Small, & Medium Enterprises Bonds S.A., Luxembourg acting on behalf of its Compartment Series 88 (the "Mortgagee") and  TriLinc Global Impact Fund Cayman, Ltd. as mortgagor (the "Mortgagor"), the Mortgagor has granted a security interest in favour of the Mortgagee over shares [ ] represented by share certificate number [ ] standing in its name on the register of members of the Company (the "Register") and certain other shares in the Company from time to time legally or beneficially owned by the Mortgagor in the Company and issued in accordance with the terms of the Finance Documents (the "Shares").

We refer to the [Terms and Conditions]/[Registered Office Agreement dated [ ] between ourselves and you] under which you provide registered office services to the Company (the "Terms") and set out below the agreement reached between the Company, the Mortgagor, you and the Mortgagee in relation to the Register maintained by you pursuant to the Terms that, notwithstanding any other provisions of the Terms:

	
1
	
You are to make an annotation of the existence of the Mortgage and the security interests created thereby In the Register and, only upon your receipt of the Discharge Notice (as defined below}, you shall amend such annotation to record that the Mortgage and such security interests have been released and discharged.

	
2 
	
At any time after the Mortgagee notifies you in writing that an Enforcement Notice has been served by the Mortgagee (as defined in the Mortgage) you are authorised and entitled to rely upon the instructions of the Mortgagee to register the Mortgagee or its nominee (as the Mortgagee may direct) in the Register as the registered holder of the Shares pursuant to the Mortgage (provided that the Mortgagee delivers to you a duly completed and executed transfer form together with the relevant share certificates in respect of the Shares being transferred) and to otherwise comply with any directions or instructions from the Mortgagee in relation thereto. Such authorisation and entitlement to rely upon the instructions of the Mortgagee shall only terminate upon your receipt of a notification in writing from the Mortgagee confirming that the Mortgage has been discharged (such notification being the "Discharge Notice").

	
3 
	
In performing your obligations under the terms of this letter you shall be entitled to rely upon instructions given by, or purporting to be given by, a director or other officer or authorised signatory of the Mortgagee.

	
4 
	
The Mortgagee's instructions shall prevail in all circumstances in respect of the matters referred to in 1 and 2 above and you are entitled to comply with such instructions of the Mortgagee.

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5
	
The Company, the Mortgagor and the Mortgagee shall jointly and severally indemnify (on a full indemnity basis) and hold harmless you, the firm of Maples and Calder and any entities, whether partnerships, companies or otherwise, owned or controlled by, or under common control with or affiliated with, Maples and Calder as may be established from time to time (for themselves and on trust and as agents for the benefit of the other persons mentioned below), their successors and assigns and their respective directors, officers, employees, agents and partners present and future and each of them, as the case may be, against all liabilities, obligations losses, damages, penalties, actions, proceedings, claims, judgements, demands, costs, expenses or disbursements of any kind (including legal fees and expenses) whatsoever which they or any of them may incur or be subject to in consequence of acting pursuant to any instructions received from the Mortgagee in respect of the matters referred to in 1 and 2 above. This indemnity provision shall survive termination of the agreement set out in this letter.

	
 
	
6
	
The agreement set out in this letter shall terminate upon the earlier of the date of (i) the Discharge Notice, (ii) termination of the Terms and (iii) you ceasing to maintain the Register.

The Company and you hereby agree that the Terms, and all rights and obligations of the parties thereunder, shall remain in full force and effect. The terms of this letter shall not, except as expressly provided herein, be deemed to be consent to any waiver or modification of any other terms or provisions of the Terms.

The terms set out in this letter are governed by, and shall be construed in accordance with, the laws of the Cayman Islands.

Please confirm by countersigning below that you agree to the above. 

Yours faithfully

 

 

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APPENDIX A

 

	
 

COLUMN A
	
 

COLUMN B

	
Company
	
Shares and shareholding

	
TriLinc Global Impact Fund- Africa, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund -African Trade

Finance, Ltd
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund -African Trade

Finance II, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund - Asia, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global impact Fund- Asia II, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
 

TriLinc Global impact Fund- Asia Ill, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund -Latin America, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund- Latin America II, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund- Latin America Ill, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capjtal of the Company set out in Column A opposite as at the date of this Mortgage.

	
TriLinc Global Impact Fund- Trade Finance, Ltd.
	
10.5 ordinary shares of US$1.00 each, represented by share certificate number 002 in the issued share capital of the Company set out in Column A opposite as at the date of this Mortgage.

 

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APPENDIX B

CALCULATION OF NET ASSET VALUE

The Net Asset Value shall be calculated in accordance with Value Measurement ("ASC 820").

ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement dale.

ASC 820 establishes a hierarchal disclosure framework which prioritises and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factor, including the type of investment and the characteristics specific to the investment.  Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Mortgagor is required to provide disclosures on fair value measurements according to the fair value hierarchy.  The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

	
 
	
•
	
Level1 -Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

	
 
	
•
	
Level 2 -Valuations based on inputs other than quoted prices included in Level 1. which are either directly or indirectly observable.

	
 
	
•
	
Level 3 - Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and is based upon management's assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose Inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, and earnings before interest, taxes, depreciation and amortization ("EBITDA") multiples. The information may also include pricing information or broker quotes that include a disclaimer that the broker would not be held to such a price in an actual transaction.  Certain investments may be valued based upon estimated value of underlying collateral, and include adjustments deemed necessary for estimates of costs to obtain control and liquidate available collateral. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

Investments for which market quotations are readily available are valued at those quotations. Most of the Company's investments are private investments in companies whose securities are not actively traded in the market and for which quotations will not be available. For those investments for which market quotations are not readily available or when such market quotations are deemed by the Manager not to represent fair value, our board of managers has approved a multi-step valuation process to be followed each fiscal quarter, as described below:

	
 
	
1.
	
Each investment is valued by TriLinc Advisors LLC (the "Manager") in collaboration with the relevant sub-advisor;

	
 
	
2.
	
For all investments with a maturity of greater than 12 months, TriLinc Global Impact Fund LLC (the "Fund") has engaged Duff & Phelps, LLC to conduct a review on the reasonableness of our internal estimates of fair value on each asset on a quarterly rotating basis, with each of such investments being reviewed at least annually, and provide an opinion that the Manager's estimate of fair value for each investment is reasonable;

	
 
	
3. 
	
The audit committee of the Fund's board of managers reviews and discusses the preliminary valuation prepared by the Manager and any opinion rendered by Duff & Phelps; and

	
 
	
4. 
	
The Fund's board of managers discusses the valuations and determines the fair value of each investment in the portfolio in good faith based on the input of the Manager, Duff & Phelps and the audit committee. The Fund's board of managers is ultimately responsible for the determination, in good faith, of the fair value of each investment.

Determination of fair value involves subjective judgments and estimates. Below is a description of factors that the Fund's board of managers may consider when valuing our investments.

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Fixed income investments are typically valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including the sale of a business).  The income approach uses valuation techniques to convert future amounts (for example, interest and principal payments) to a single present value amount (discounted) calculated based on an appropriate discount rate. The measurement is based on the net present value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Manager may take into account in valuing the Mortgagor's investments include, as applicable: available  current market  data, including  relevant  and applicable  market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the borrower's ability to make payments, its earnings and discounted cash flows, the markets in which the company does business, comparisons of financial ratios of peer companies that are public, the principal market for the borrower's securities and an estimate of the borrower's enterprise value, among other factors.

Equity interests in portfolio companies for which there is no liquid public market are valued at fair value. The Fund's board of managers, in its analysis of fair value, may consider various factors, such as multiples of EBITDA, cash flows, net income, revenues or in limited instances book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or our actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or the effects of acquisitions, recapitalizations, restructurings or other similar items.

The Manager may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third -party investments in the portfolio companies or industry practices in determining fair value. The Manager may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors the Manager deems relevant in measuring the fair values of our investments.

 

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