Document:

EX-10.1 NOVATION AGREEMENT DATED JUNE 19, 2006

 

Exhibit 10.1

THIS NOVATION AGREEMENT is made the 19th day of June 2006

BETWEEN

	 	 	 	 	 
	(1)

	 	SANTANDER BANCORP	 	 
	 

	 	207 Ponce de Leon Avenue,	 	 
	 

	 	San Juan	 	 
	 

	 	Puerto Rico
	 	(the “Borrower”)
	 
	 	 	 	 
	(2)

	 	SANTUSA HOLDINGS S.L.	 	 
	 

	 	Avenida de Cantabria s/n,	 	 
	 

	 	28660 Boabdilla del Monte	 	 
	 

	 	Madrid
	 	(the “Original Lender”)
	 
	 	 	 	 
	(3)

	 	LLOYDS TSB BANK PLC	 	 
	 

	 	25 Gresham Street,	 	 
	 

	 	London, EC2V 7HN
	 	(the “New Lender”)

WHEREAS

	(A)	 	By a loan agreement dated 27 February, 2006 (the “Original Loan Agreement”) the Original
Lender agreed to make available to the Borrower a loan facility of USD 725,000,000 (seven
hundred and twenty five million US Dollars).
	 
	(B)	 	At the date of this agreement the facility has been drawn down in full and the principal
amount of USD 725,000,000 (the “Loan”) is outstanding to the Original Lender together with
accrued interest from 27th February, 2006.
	 
	(C)	 	The Original Lender and the New Lender have agreed that the Original Lender shall transfer by
novation its rights and obligations under the Loan Agreement, including its rights to accrued
interest, to the New Lender on the Effective Date, and the Borrower has consented to the
transfer of the Loan and all of the Borrower’s obligations under the Original Loan Agreement
to the New Lender.
	 
	(D)	 	The Borrower and the New Lender have agreed that the Original Loan Agreement be amended and
restated on the Effective Date.

NOW IT IS HEREBY AGREED AND DECLARED as follows:

	1.	 	DEFINITIONS
	 
	 	 	“Amended Loan Agreement” means the Original Loan Agreement, as amended and restated in
the form set out in Schedule I (Form of Amended Loan Agreement).
	 
	 	 	“Accrued Interest Amount” means the amount of accrued interest on the Loan up to and
including the Effective Date,(as agreed by the parties on or before 11 a.m. London time on the
Notification Date).
	 
	 	 	“Effective Date” means 22nd June, 2006, or such later date as the
preconditions specified in Clause 4 shall have been satisfied.
	 
	 	 	“Interest Consideration” means an amount equal to the accrued interest on the Loan up to
and including the Effective Date, as agreed by the Original Lender and the New Lender on or
before 11 a.m. London time on the Notification Date.
	 
	 	 	“Notification Date” means the date occurring two business days before the Effective Date.
	 
	 	 	“Principal Consideration” means USD 725,000,000.

 

 

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	 	 	“Selection Notice” means a notice substantially in the form set out in Annex II of the
Amended Loan Agreement.
	 
	 	 	“Utilisation Fee” has the meaning ascribed to that term under the Amended Loan Agreement.
	 
	2.	 	NOVATION
	 
	 	 	With effect from the Effective Date:

	 	(i)	 	the Original Lender and the Borrower shall be released from their existing and
future obligations towards one another under the Original Loan Agreement and their
respective rights against one another shall be cancelled (being the “Discharged Rights
and Obligations”);
	 
	 	(ii)	 	the Borrower and the New Lender shall assume obligations towards one another and/or
acquire rights against one another which differ from the Discharged Rights and
Obligations only insofar as the Borrower and the New Lender have assumed and/or acquired
them in place of the Borrower and the Original Lender.

	3.	 	PAYMENTS
	 
	 	 	On the Effective Date:

	 	(i)	 	the New Lender will pay the Principal Consideration to the Original Lender;
	 
	 	(ii)	 	the New Lender will pay the Interest Consideration to the Original Lender;
	 
	 	(iii)	 	the Borrower will pay the Accrued Interest Amount to the New Lender pursuant to
its obligations under the Amended Loan Agreement;
	 
	 	(iv)	 	the Borrower will pay the Utilisation Fee to the New Lender pursuant to its
obligations under the Amended Loan Agreement.

	 	 	Payments to the Original Lender shall be made to the following account:

	 	 	 	Account number 10936195 with CITIBANK N.A, New York (SWIFT address CITIUS33) in name of
Banco Santander Central Hispano S.A. Madrid, for further credit to Santusa Holding S.L.
(account number: 0049-1799-41-281-2202946 and IBAN: ES75-0049-1799-4128-1220-2946);

	 	 	Payments to the New Lender shall be made to the following account:

	 	 	 	Bank of New York, New York (SWIFT address IRVTUS3N) favour of LLOYDS TSB BANK, Loans
Administration Dept, Bristol, Account No. 8900047003 under reference BANCOMER;

	 	 	All payments shall be made in US Dollars by 10 a.m. local time on the due date concerned in
same day funds free and clear of any set-off, counterclaim, restriction or condition
whatsoever and without any deduction in respect of taxes, duties, levies, imposts, charges,
fees or withholdings of any nature whether made before or after the date of this agreement.

	4.	 	AMENDMENT AND RESTATEMENT OF THE FACILITY LETTER
	 
	 	 	With effect from the Effective Date the Original Loan Agreement shall be amended and restated
in the form set out in Schedule I (Form of Amended Loan Agreement).
	 
	5.	 	CONDITIONS PRECEDENT
	 
	 	 	This Agreement shall not be effective until the New Lender has received in a form
acceptable to it:

	 	(i)	 	a certified copy of the resolution of the board of directors of the Borrower
evidencing the authority of the Borrower to enter into this Agreement and transfer the
Loan in accordance with its terms and

 

 

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	 	 	 	certificate of authority and incumbency nominating the person(s) authorised to sign this
Agreement, together with specimen signatures of such person(s);
	 
	 	(ii)	 	evidence of the authority of the Original Lender to enter into this Agreement;
	 
	 	(iii)	 	the guarantee from Banco Santander Central Hispano S.A. required pursuant to
Clause 3(c) of the Amended Loan Agreement;
	 
	 	(iv)	 	a legal opinion from Pietrantoni Mendez & Alvarez LLP addressed to the New Lender
in respect of the laws of the Commonwealth of Puerto Rico;
	 
	 	(v)	 	a Selection Notice to be delivered by the Borrower pursuant to the Amended Loan
Agreement by not later than 9 a.m. London time on the Notification Date, selecting the
interest period to apply to the Loan with effect from the Effective Date.

	 	 	The New Lender shall provide the Original Lender with reasonable evidence of authority of the
New Lender to enter into this Agreement.

	6.	 	LIMITATION OF RESPONSIBILITY OF ORIGINAL LENDER

	 	(i)	 	The New Lender confirms to the Original Lender that it has made its own independent
appraisal of the affairs and creditworthiness of the Borrower and has not relied
exclusively on any information provided to it by the Original Lender in connection with
the Original Loan Agreement.
	 
	 	(ii)	 	The Original Lender makes no representation or warranty to the New Lender in
respect of the validity and effectiveness of the Original Loan Agreement, the financial
condition of the Borrower, or the performance of any obligation of the Borrower under the
Original Loan Agreement.
	 
	 	(iii)	 	Nothing in this Agreement obliges the Original Lender to accept a re-transfer from
the New Lender of any of the rights or obligations assigned or transferred under this
Agreement, or to support any losses directly or indirectly incurred by the New Lender by
reason of the non-performance by the Borrower of its obligations under the Original Loan
Agreement.

	7.	 	REPRESENTATIONS & WARRANTIES

	 	(i)	 	The Borrower hereby represents and warrants to the New Lender that all action
necessary to authorise the Borrower’s execution of this Agreement and its performance of
its obligations both under this Agreement and under the Amended Loan Agreement has been
duly taken and neither such execution nor such performance will constitute or result in
any breach of any agreement, law, requirement or regulation.
	 
	 	(ii)	 	On the date of this Agreement and on the Effective Date the Borrower makes the
representations and warranties in Clause 8 (Representations and Warranties) of the
Amended Loan Agreement by reference to the facts and circumstances then existing.

	8.	 	MISCELLANEOUS

	 	(i)	 	This Agreement and the Amended Loan Agreement shall be read and construed as one
instrument.
	 
	 	(ii)	 	The Borrower shall reimburse the New Lender on demand with the amount of all
reasonable legal fees or other costs incurred by the New Lender in connection with the
preparation and execution of this Agreement.
	 
	 	(iii)	 	This agreement may be executed in any number of counterparts, which together shall
constitute a single agreement.
	 
	 	(iv)	 	This agreement shall not otherwise confer any benefit on or be enforceable by a
third party.
	 
	 	(v)	 	This Agreement shall be construed, interpreted and governed in all respects in
accordance with the laws of England. The Borrower and the Original Lender hereby agree
to submit to the jurisdiction of the English courts.

 

 

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

	 	 	 
	Signed for and on behalf of

	 	Signed for and on behalf of
	LLOYDS TSB BANK PLC

	 	SANTANDER BANCORP
	 
	 	 
	 

	 	By: /s/ Carlos M. García
	 

	 	 
	By: /s/ Richard Bowser

	 	By: /s/ Juan P. Pérez Hanley
	 

	 	 
	      Richard Bowser
	 	 
	      Relationship Director

	 	Signed for and on behalf of
	 

	 	SANTUSA HOLDINGS S.L.
	 
	 	 
	By: /s/ Adrian Tooth

	 	By: /s/ César Ortega
	 

	 	 
	     Adrian Tooth

	 	By: /s/ Ana Cueto
	 

	 	 
	     Relationship Manager
	 	 

 

 

SCHEDULE I

FORM OF AMENDED LOAN AGREEMENT

 

 

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	Santander BanCorp

	 	Lloyds TSB Bank plc,
	207 Ponce de Leon Ave

	 	Financial Institutions
	Hato Rey

	 	25 Gresham Street,
	San Juan,

	 	London,
	Puerto Rico 00917

	 	EC2V 7HN

	 	 	 
	SWIFT:

	 	LLOYDGB2L
	Fax No:

	 	+44 20 7661 4790
	Telephone:

	 	+44 20 7661 4771
	 
	 	 
	Reference:

	 	D\PHUN\MCPJ1959
	Date:

	 	27th February, 2006

Dear Sirs,

Amended and Restated USD 725,000,000 Loan Facility

We are pleased to confirm that we are prepared to make available to you a loan facility subject to
the following terms and conditions.

	1.	 	Definitions
	 
	 	 	“Borrower” means Santander BanCorp.
	 
	 	 	“Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for
business in London and New York.
	 
	 	 	“Commitment Termination Date” means the date which occurs one month following the date of
this agreement.
	 
	 	 	“Dollars” and “USD” means the lawful currency of the United States of America.
	 
	 	 	“Early Termination Event” means an event or circumstance set out in Clause 12 (Early
Termination).
	 
	 	 	“Facility” means the loan facility in Dollars made available under this agreement.
	 
	 	 	“Facility Amount” means USD 725,000,000 (United States Dollars Seven Hundred and Twenty-Five
Million).
	 
	 	 	“Guarantee” means a guarantee in a form acceptable to the Lender from Banco Santander
Central Hispano S.A. Madrid in respect of the obligations of the Borrower to the Lender in
respect of the Loan.
	 
	 	 	“Interest Period” means, in respect of the Loan, each period determined in accordance with
Clause 4(d) – (Interest).
	 
	 	 	“Lender” means Lloyds TSB Bank plc, acting through its Financial Institutions office.

 

 

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	 	 	“LIBOR” means with respect to the Loan and an Interest Period,

(a) the British Bankers Association Interest Settlement Rate displayed on the
appropriate page of the Reuters screen or, if no such screen rate is available,

(b) the arithmetic mean of the rates (rounded up to four decimal places) as supplied
to the Lender at its request quoted by the Reference Banks to leading banks in the
London interbank market,

	 	 	for the offering of deposits in Dollars for a period comparable to that of the Interest
Period concerned as of 11 a.m. two Business Days prior to the proposed date of drawing.
	 
	 	 	“Loan” means the loan made or to be made to the Borrower under this agreement or, as the
case may be, the balance outstanding from time to time of such loan.
	 
	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Lender as being its
cost of compliance with the requirements of the Financial Services Authority in respect of
the Loan.
	 
	 	 	“Margin” means 0.10% per annum.
	 
	 	 	“Market Disruption Event” means an inability to determine LIBOR or only one of the Reference
Banks supplies a rate to determine LIBOR.
	 
	 	 	“Material Adverse Effect” means a material adverse effect on the ability of the Borrower to
perform its payment obligations under this agreement.
	 
	 	 	“Notification Time” means 9.00 a.m. London time.
	 
	 	 	“Reference Banks” means the principal London offices of Barclays Bank, Royal Bank of
Scotland, and HSBC Bank, or such other banks as may be agreed between the Borrower and the
Lender.
	 
	 	 	“Repayment Date” means, in respect of the Loan, 28th December, 2006.
	 
	 	 	“Selection Notice” means a notice substantially in the form set out in Appendix II.
	 
	 	 	“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).
	 
	 	 	“Utilisation Request” means a notice substantially in the form set out in Annex I.

 

 

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	2.	 	Utilisation

	 	(a)	 	The Borrower may utilise the Facility by delivery to the Lender of a duly
completed Utilisation Request on any Business Day occurring on or before the Commitment
Termination Date not later than the Notification Time 2 Business Days prior to the
proposed date of drawing.
	 
	 	(b)	 	The Loan may be drawn in one amount not to exceed the Facility Amount.
	 
	 	(c)	 	The Lender will only be obliged to make the Loan if on the date of the
Utilisation Request and on the proposed date of utilisation no Early Termination Event
has occurred and is continuing, and Dollars are freely available to the Lender in the
London interbank market.
	 
	 	(d)	 	The proceeds of the Loan shall be applied by the Borrower to refinance
indebtedness incurred in connection with its purchase of substantially all the assets
and operations of the Island Finance business in Puerto Rico.

	3.	 	Conditions Precedent
	 
	 	 	The Borrower may not deliver a Utilisation Request until the Lender has received the
following conditions precedent:

	 	(a)	 	a copy of this agreement duly signed by the Borrower as evidence of acceptance
of its terms;
	 
	 	(b)	 	a certificate of the Borrower’s signatories authorised to execute and utilise
the Facility; and
	 
	 	(c)	 	the Guarantee.

	4.	 	Interest

	 	(a)	 	The Loan will bear interest from the date of drawing until the Repayment Date
calculated on the basis of a 360-day year for the exact number of days elapsed.
	 
	 	(b)	 	The Borrower shall pay accrued interest on the Loan on the last day of each
Interest Period.
	 
	 	(c)	 	The interest rate for each Interest Period , other than the initial Interest
Period, will be determined by the Lender and shall be the aggregate of:

	 	(i)	 	the Margin;
	 
	 	(ii)	 	LIBOR; and
	 
	 	(iii)	 	Mandatory Cost, if any.

 

 

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	 	(d)	 	The term for each Interest Period shall be one, three, or 6 months, or such
other period as the Borrower and Lender may agree, provided that no Interest Period
shall extend beyond the Repayment Date. The Borrower may request an Interest Period by
means of the Utilisation Request in respect of the initial Interest Period, and in a
Selection Notice if the Loan has already been drawn.
	 
	 	(e)	 	Each Selection Notice shall be delivered not later than the Notification Time 2
Business Days prior to first day of the Interest Period concerned. If the Borrower
fails to deliver a Selection Notice then the relevant Interest Period shall be one
month.
	 
	 	(f)	 	Each Interest Period other than the initial Interest Period shall start on the
last day of the preceding Interest Period.
	 
	 	(g)	 	The initial Interest Period shall start on the date of drawdown and end on
22nd June, 2006 and the applicable interest rate for the initial Interest
Period shall be 4.96500% inclusive.
	 
	 	(h)	 	The Lender agrees to promptly notify the Borrower of the rate of interest
applicable for each Interest Period.

	5.	 	Utilisation Fee
	 
	 	 	The Borrower will pay the Lender on 22nd June 2006 a utilisation fee of
0.015% calculated on the amount of the Loan.
	 
	6.	 	Repayment, Prepayment & Cancellation

	 	(a)	 	The Loan shall be repaid in one amount on the Repayment Date.
	 
	 	(b)	 	The Borrower shall not repay all or any part of any Loan except in the manner
expressly provided for in this agreement.
	 
	 	(c)	 	Provided no drawing has been made, the Borrower may by not less than three
Business Days’ written notice to the Lender cancel the Facility in whole, but not in
part.

	7	 	Payments

	 	(a)	 	The repayment of principal and payment of interest and other amounts due to the
Lender under this agreement shall be made in Dollars by 10 a.m. New York time on the
due date in same day funds to the account of the Lender with such bank in New York or
any other financial centre in the United States of America as the Lender shall from
time to time stipulate.
	 
	 	(b)	 	All payments shall be made free and clear of any set-off, counterclaim,
restriction or condition whatsoever and without any deduction in respect of taxes,
duties, levies, imposts, charges, fees or withholdings of any nature whether made
before or after the date of this agreement.

 

 

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	 	(c)	 	In the event of the Borrower being compelled by law to make any such deduction,
the Borrower shall forthwith pay the Lender such additional amounts as may be necessary
to ensure that the aggregate of the net amounts received by the Lender, after such
deduction or withholding, shall equal the amount which would have been received in the
absence of such deduction or withholding. In such event the Borrower shall provide the
Lender within 45 days of the date of such payment with a certified copy of the receipt
evidencing the payment of such tax or other deduction issued by the relevant taxing
authority.

	8.	 	Representations and Warranties
	 
	 	 	The Borrower makes the representations and warranties set out in this clause.

	 	(a)	 	It is a corporation duly constituted and validly existing under the laws of the
Commonwealth of Puerto Rico and that it has all authorisations required to carry on its
business.
	 
	 	(b)	 	Its execution of this agreement and the performance of its terms are within the
Borrower’s powers and have been duly authorised by all necessary actions and do not and
will not contravene any law or any contractual or other restriction binding upon the
Borrower.
	 
	 	(c)	 	This agreement constitutes a legally binding obligation of the Borrower
enforceable in accordance with its terms.
	 
	 	(d)	 	Its obligations in respect of any utilisation of the Facility do not and will
not conflict with any law or regulation applicable to it, including without limitation
exchange and other controls of the Federal Reserve Board.
	 
	 	(e)	 	Its payment obligations in respect of utilisations under the Facility will at
all times rank pari passu with the claims of all its other unsecured creditors (save
for claims mandatorily preferred by law applying generally).
	 
	 	(f)	 	All consents, licences, approvals, authorisations and registrations which are
required in connection with the execution, delivery, performance, legality and
enforceability of this agreement have been duly obtained or effected, as the case may
be, and are in full force and effect.
	 
	 	(g)	 	All amounts payable by the Borrower under this agreement may be made free and
clear of and without deduction for or on account of any Tax.
	 
	 	(h)	 	No stamp or registration duty or similar taxes or charges are payable in the
Commonwealth of Puerto Rico in respect of this agreement.
	 
	 	(i)	 	The execution by the Borrower of this agreement constitutes, and performance of
its terms will constitute, private and commercial acts, and the Borrower will not be
able to claim immunity from suit or other legal process in any proceedings taken in
relation to this agreement.
	 
	 	(j)	 	The choice of English law as the governing law of this agreement will be
recognised and enforced in its jurisdiction of incorporation. Any judgment obtained in
England in relation to this agreement will be recognised and enforced in its
jurisdiction of incorporation.

 

 

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	 	(k)	 	No Early Termination Event is continuing or might reasonably result from making
a drawing under this Facility.
	 
	 	(l)	 	No litigation, arbitration or administrative proceedings of or before any
court, which, if adversely determined, might reasonably be expected to have a Material
Adverse Effect have (to the best of its knowledge and belief) been started or
threatened against it.

	 	 	These representations and warranties shall be deemed to be repeated by reference to the
facts and circumstances then existing on the date of the Utilisation Request, on the date of
drawing and on the date of each Selection Notice.
	 
	9.	 	Covenants
	 
	 	 	The Borrower hereby undertakes to the Lender that during the life of this facility and
while any amount is owing to the Lender under this agreement it will:

	 	(a)	 	forward to the Lender its audited annual report and accounts as soon as these
are available to its shareholders and will provide the Lender with such other financial
information as the Lender may reasonably request from time to time;
	 
	 	(b)	 	promptly advise the Lender of the occurrence of any event which constitutes or
with the lapse of time or giving of notice or both would constitute an Early
Termination Event;
	 
	 	(c)	 	promptly obtain, maintain and comply with any authorisations, licences and
permissions required under any law or regulation to enable it to perform its
obligations under, or for the validity or enforceability of, this agreement; and
	 
	 	(d)	 	refrain from making any substantial change to the general nature or scope of
its business.

	10.	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for the Lender to perform any of its
obligations as contemplated by this agreement or to fund or maintain the Loan, then upon
notification by the Lender to the Borrower the Facility shall be immediately cancelled and
the Borrower shall repay the Loan on the date specified by the Lender in such notice, being
no earlier than the last day of any applicable grace period permitted by law.

 

 

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	11.	 	Market Disruption
	 
	(a)	 	If LIBOR falls to be determined by reference to rates provided by the Reference Banks
and a reference bank does not supply an offered rate by noon two Business Days before the
first day of the Loan, the applicable LIBOR shall be determined on the basis of the
quotations of the remaining Reference Banks.
	 
	(b)	 	If a Market Disruption Event occurs at the time LIBOR is to be determined, then the
Lender shall promptly notify the Borrower and the rate of interest applicable to the Loan
shall be the rate which represents the sum of the Margin, Mandatory Cost, if any and the
cost of funding for the Loan from whatever source the Lender may reasonably select.
	 
	(c)	 	If a Market Disruption Event occurs and the Borrower so requires, the Lender and the
Borrower shall enter into negotiations (for a period of not more then 10 days) with a view
to agreeing a substitute basis for determining the rate of interest. Any alternative basis
agreed pursuant to clause 11(b) shall be binding on the Borrower and the Lender.

	12.	 	Early Termination
	 
	 	 	If:

	 	(a)	 	the Borrower fails to pay any sum due to the Lender under this agreement on its
due date; or
	 
	 	(b)	 	the Borrower commits any breach of or omits to observe any other obligation
accepted or undertaking given under this agreement; or
	 
	 	(c)	 	any representation, warranty or statement made by the Borrower pursuant to this
agreement proves to have been incorrect as of the date it was made (or deemed made) or
is breached; or
	 
	 	(d)	 	any indebtedness of the Borrower becomes or is capable of being declared due
prior to its due date for repayment, or the Borrower defaults in the repayment when due
of any indebtedness or in paying on the due date any sum payable under any guarantee,
or indemnity given by it; or
	 
	 	(e)	 	any security interest securing financial indebtedness over any asset of the
Borrower becomes enforceable; or
	 
	 	(f)	 	the Borrower is unable or admits inability to pay its debts as they fall due,
suspends making payments on any of its debts or commences negotiations with creditors
with a view to rescheduling any of its indebtedness; or the value of its assets is less
than its liabilities (taking into account contingent and prospective liabilities); or a
moratorium is declared in respect of any of its indebtedness; or
	 
	 	(g)	 	any corporate action, legal proceedings or other procedure or step is taken in
relation to the Borrower regarding (i) the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution, administration or reorganisation (ii) a
composition, assignment or arrangement with creditors; or (iii) the appointment of a
liquidator, receiver, administrator, administrative receiver or other similar officer;
or (iv) any analogous procedure or step is taken in any jurisdiction; or
	 
	 	(h)	 	the Borrower ceases to carry on its business, or a substantial part of its
assets are seized or appropriated for any reason; or

 

 

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	 	(i)	 	any governmental or other registration licence or approval necessary to enable
the Borrower to continue its business or to comply with or perform any of its
obligations under this agreement is revoked, withdrawn, modified or withheld or
otherwise fails to remain in full force and effect, or
	 
	 	(j)	 	the person(s) who now have control or voting control of the Borrower cease to
have control or voting control of the Borrower; or
	 
	 	(k)	 	it is, or becomes, unlawful for the Borrower to perform any of its obligations
under this agreement; or
	 
	 	(l)	 	any event, or series of events occurs which, in the opinion of the Lender,
might produce a Material Adverse Effect; or
	 
	 	(m)	 	the Borrower fails to comply with the regulations of the Federal Reserve Board
or any other regulations, legislation or license applicable to it as a bank holding
company, or any consent, authorisation, license, registration or approval from any
regulatory or other authority required by the Borrower in the conduct of its business
is not granted or is revoked or terminated or expires and is not renewed or otherwise
ceases to be in full force and effect; or
	 
	 	(n)	 	the Guarantee ceases to be in full force and effect or notice of discontinuance
of the Guarantee is received;

	 	 	then upon the happening of such event the obligations of the Lender under this agreement
shall immediately terminate and the Lender shall have the right to make the Loan, together
with accrued interest and any other amount owing, due and payable on demand.
	 
	 	 	The Borrower will pay on demand interest on any overdue amounts at the rate which is 2% per
annum above the cost to the Lender of funding such amounts for such period or consecutive
periods as it may select running from the due date for such amounts until payment in full by
the Borrower.

	13.	 	Indemnity

	 	(a)	 	The Borrower shall indemnify the Lender on demand against all losses and
expenses incurred by the Lender arising out of the occurrence of an Early Termination
Event and/or funding the Loan if requested by the Borrower in a Utilisation Request but
not made by reason of the operation of any one or more of the provisions of this
agreement (other than by reason of default or negligence by the Lender) and/or the
payment of the Loan in whole or in part being made by the Borrower other than on its
due date. The Lender’s certificate of the amount of such losses (setting out in
reasonable detail the basis for calculation of such amount and following, where
relevant, standard market practice) shall in the absence of manifest error be
conclusive and binding on the Borrower.
	 
	 	(b)	 	The Borrower shall pay to the Lender an amount equal to the loss, liability or
cost which the Lender determines will be or has been (directly or indirectly) suffered
for or on account of any Tax, in connection with the Loan other than a Tax assessed on
the Lender under the law of the jurisdiction 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 by the Lender.

 

 

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	14.	 	Termination of Facility
	 
	 	 	This agreement shall terminate on the Repayment Date except in respect of any amount,
actual or contingent, outstanding on that date.
	 
	15.	 	Benefit of Agreement

	 	(a)	 	This agreement shall be binding upon and shall inure only to the benefit of the
Borrower and the Lender and their respective successors and assigns provided that no
party shall assign or transfer any of its respective rights or obligations under this
agreement without the prior written consent of the other party.
	 
	 	(b)	 	This agreement shall not otherwise confer any benefit on or be enforceable by a
third party.

	16.	 	Miscellaneous
	 
	 	 	In addition to interest and all other amounts payable under this agreement the Borrower
shall pay the Lender on demand any cost or loss to the Lender consequent on the introduction
of or any change in any applicable law, regulation, requirement, directive or request or any
change in its interpretation by any relevant governmental, fiscal, monetary or other
authority or by any self-regulating organisation or court of competent jurisdiction
(including without limitation any request or requirement which affects the manner in which
the Lender allocates its capital resources to its obligations under this agreement) the
effect of which is to increase the cost or reduce the return to the Lender.
	 
	17.	 	Notices
	 
	 	 	All notices, requests, demands, consents and other communications given or sent under this
agreement shall be in writing and (unless otherwise indicated) mailed, or faxed to the
applicable party at its address indicated below or at such other address as such party may
designate by written notice to the other party.

	 	 	 	 	 	 
	 

	 	If to the Borrower:
	 	 	Santander Bancorp,
	 

	 	 	 	 	Attn: Treasury Back Office
	 

	 	 	 	 	207 Ponce de Leon Ave.
	 

	 	 	 	 	5th Floor
	 

	 	 	 	 	San Juan, PR 00917
	 
	 	 	 	 	 
	 

	 	 	 	 	Telephone: 1 – 787 – 777 — 4417
	 
	 	 	 	 	 
	 

	 	 	 	 	Facsimile: 1 – 787 – 777 — 4193
	 
	 	 	 	 	 
	 	 	 	or such other office of the Borrower as may be notified to the
Lender in writing.

 

 

11

	 	 	 	 	 	 
	 

	 	If to the Lender (other than operational notices):
	 	Lloyds TSB Bank plc,
	 

	 	 	 	 	Financial Institutions,
	 

	 	 	 	 	25 Gresham Street
	 

	 	 	 	 	London EC2V 7HN
	 
	 	 	 	 	 
	 

	 	 	 	 	Telephone: +44 20 7661 4771
	 
	 	 	 	 	 
	 

	 	 	 	 	Facsimile: 44 20 7661 4790
	 
	 	 	 	 	 
	 

	 	 	 	 	SWIFT: LLOYDGB2L
	 
	 	 	 	 	 
	 	 	 	or such other office of the Lender as may be notified to the
Borrower in writing.

	 	 	 	 	 	 
	 

	 	If to the Lender (for operational notices):
          	 	Lloyds TSB Bank plc
	 

	 	 	 	 	Loans Administration Department
	 

	 	 	 	 	Bank House
	 

	 	 	 	 	Wine Street
	 

	 	 	 	 	Bristol BS1 2AN
	 
	 	 	 	 	 
	 

	 	 	 	 	Telephone: +44 117 923 3359/3477
	 
	 	 	 	 	 
	 

	 	 	 	 	Facsimile: +44 117 923 3367
	 
	 	 	 	 	 
	 

	 	 	 	 	SWIFT: LLOYDGB2L
	 
	 	 	 	 	 
	 	 	 	or such other office of the Lender as may be notified to the
Borrower in writing.

	 	 	All such notices, requests, demands, consents or other communications shall be deemed to
have been duly given when received in legible form by the party to which they are required
or permitted to be given or made under this agreement.
	 
	 	 	All fax communications made by the Borrower shall be promptly confirmed by letter, but so
that a failure to confirm shall not affect the validity of the original fax communication.
All communications received by the Lender by fax which appear to be given by an authorised
signatory of the Borrower and are believed by the Lender to be genuine, shall have the same
validity as a communication received by mail.
	 
	18.	 	Governing Law
	 
	 	 	The parties hereto expressly agree that this agreement shall be construed interpreted and
governed in all respects in accordance with the laws of England. The Borrower hereby agrees
to submit to the jurisdiction of the English Courts but this shall not prejudice the rights
of the Lender in any other jurisdiction where proceedings may lawfully be commenced against
the Borrower.

 

 

12

Please signify your acceptance of the terms of this agreement by signing and returning the attached
counterpart.

Yours faithfully,

For and on behalf of

LLOYDS TSB BANK PLC

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

Authorised Signatory
	 	...................................

Authorised Signatory

Accepted by and agreed to

For and on behalf of

SANTANDER BANCORP

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

Authorised Signatory
	 	...................................

Authorised Signatory

 

 

ANNEX I

Utilisation Request

To: Lloyds TSB Bank plc

Loans Administration Dept

Bank House

Wine Street

Bristol BS1 2AN

From: Santander BanCorp,

[Address]

[Date]

Dear Sirs,

Santander BanCorp

USD 725,000,000 Loan Agreement dated 27thFebruary, 2006 (the “Agreement”)

	1.	 	We wish to borrow the Loan on the following terms:

	 	 	 	 	 
	 

	 	Proposed utilisation date:

	 	[ xxx ] (or if that is
not a Business Day, the next Business Day).
	 
	 	 	 	 
	 

	 	Amount:
	 	USD 725,000,000.
	 
	 	 	 	 
	 

	 	Initial Interest Period:
	 	Date of drawdown to 22nd June, 2006.

	2.	 	The proceeds of the Loan should be credited to:

	 	 	 	 	 
	 

	 	Account [ xxx ] of Santander BanCorp
	 	 
	 
	 	 	 	 
	 

	 	[Name of Bank]	 	 
	 
	 	 	 	 
	 

	 	[Address of Bank]	 	 

	3.	 	We confirm that no Early Termination Event has occurred under the Agreement.
	 
	4.	 	This Utilisation Request is irrevocable.

Yours truly,

Santander BanCorp

By:

Authorised Signatory

 

 

ANNEX II

Selection Notice

To: Lloyds TSB Bank plc

Loans Administration Dept

Bank House

Wine Street

Bristol BS1 2AN

From: Santander BanCorp,

[Address]

[Date]

Dear Sirs,

Santander BanCorp

USD 725,000,000 Loan Agreement dated 27th February 2006 (the “Agreement”)

	1.	 	We refer to the Loan and the current Interest Period ending on [       ].
	 
	2.	 	We request that the next Interest Period for the Loan is [       ]:
	 
	3.	 	This Selection Notice is irrevocable.

Yours truly,

Santander BanCorp

By:

Authorised SignatoryEX-10.2 AMENDED AND RESTATED LOAN FACILITY

 

Exhibit 10.2

	 	 	 
	 

	 	Lloyds TSB Bank plc,
	 

	 	Financial Institutions
	Santander BanCorp

	 	25 Gresham Street,
	207 Ponce de Leon Ave

	 	London,
	Hato Rey

	 	EC2V 7HN
	San Juan,
	 	 
	Puerto Rico 00917
	 	 

	 	 	 	 	 
	 

	 	SWIFT:
	 	LLOYDGB2L
	 

	 	Fax No:
	 	+44 20 7661 4790
	 

	 	Telephone:
	 	+44 20 7661 4771
	 
	 	 	 	 
	 

	 	Reference:
	 	D\PHUN\MCPJ1959
	 

	 	Date:
	 	27th February, 2006

Dear Sirs,

Amended and Restated USD 725,000,000 Loan Facility

We are pleased to confirm that we are prepared to make available to you a loan facility subject to
the following terms and conditions.

	1.	 	Definitions
	 
	 	 	“Borrower” means Santander BanCorp.
	 
	 	 	“Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for
business in London and New York.
	 
	 	 	“Commitment Termination Date” means the date which occurs one month following the date of
this agreement.
	 
	 	 	“Dollars” and “USD” means the lawful currency of the United States of America.
	 
	 	 	“Early Termination Event” means an event or circumstance set out in Clause 12 (Early
Termination).
	 
	 	 	“Facility” means the loan facility in Dollars made available under this agreement.
	 
	 	 	“Facility Amount” means USD 725,000,000 (United States Dollars Seven Hundred and Twenty-Five
Million).
	 
	 	 	“Guarantee” means a guarantee in a form acceptable to the Lender from Banco Santander
Central Hispano S.A. Madrid in respect of the obligations of the Borrower to the Lender in
respect of the Loan.
	 
	 	 	“Interest Period” means, in respect of the Loan, each period determined in accordance with
Clause 4(d) — (Interest).
	 
	 	 	“Lender” means Lloyds TSB Bank plc, acting through its Financial Institutions office.

 

2

	 	 	“LIBOR” means with respect to the Loan and an Interest Period,

(a) the British Bankers Association Interest Settlement Rate displayed on the
appropriate page of the Reuters screen or, if no such screen rate is available,

(b) the arithmetic mean of the rates (rounded up to four decimal places) as supplied
to the Lender at its request quoted by the Reference Banks to leading banks in the
London interbank market,

for the offering of deposits in Dollars for a period comparable to that of the Interest
Period concerned as of 11 a.m. two Business Days prior to the proposed date of drawing.

“Loan” means the loan made or to be made to the Borrower under this agreement or, as the
case may be, the balance outstanding from time to time of such loan.

“Mandatory Cost” means the percentage rate per annum calculated by the Lender as being its
cost of compliance with the requirements of the Financial Services Authority in respect of
the Loan.

“Margin” means 0.10% per annum.

“Market Disruption Event” means an inability to determine LIBOR or only one of the Reference
Banks supplies a rate to determine LIBOR.

“Material Adverse Effect” means a material adverse effect on the ability of the Borrower to
perform its payment obligations under this agreement.

“Notification Time” means 9.00 a.m. London time.

“Reference Banks” means the principal London offices of Barclays Bank, Royal Bank of
Scotland, and HSBC Bank, or such other banks as may be agreed between the Borrower and the
Lender.

“Repayment Date” means, in respect of the Loan, 28th December, 2006.

“Selection Notice” means a notice substantially in the form set out in Appendix II.

“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).

“Utilisation Request” means a notice substantially in the form set out in Annex I.

 

3

	2.	 	Utilisation

	 	(a)	 	The Borrower may utilise the Facility by delivery to the Lender of a duly
completed Utilisation Request on any Business Day occurring on or before the Commitment
Termination Date not later than the Notification Time 2 Business Days prior to the
proposed date of drawing.
	 
	 	(b)	 	The Loan may be drawn in one amount not to exceed the Facility Amount.
	 
	 	(c)	 	The Lender will only be obliged to make the Loan if on the date of the
Utilisation Request and on the proposed date of utilisation no Early Termination Event
has occurred and is continuing, and Dollars are freely available to the Lender in the
London interbank market.
	 
	 	(d)	 	The proceeds of the Loan shall be applied by the Borrower to refinance
indebtedness incurred in connection with its purchase of substantially all the assets
and operations of the Island Finance business in Puerto Rico.

	3.	 	Conditions Precedent
	 
	 	 	The Borrower may not deliver a Utilisation Request until the Lender has received the
following conditions precedent:

	 	(a)	 	a copy of this agreement duly signed by the Borrower as evidence of acceptance
of its terms;
	 
	 	(b)	 	a certificate of the Borrower’s signatories authorised to execute and utilise
the Facility; and
	 
	 	(c)	 	the Guarantee.

	4.	 	Interest

	 	(a)	 	The Loan will bear interest from the date of drawing until the Repayment Date
calculated on the basis of a 360-day year for the exact number of days elapsed.
	 
	 	(b)	 	The Borrower shall pay accrued interest on the Loan on the last day of each
Interest Period.
	 
	 	(c)	 	The interest rate for each Interest Period , other than the initial Interest
Period, will be determined by the Lender and shall be the aggregate of:

	 	(i)	 	the Margin;
	 
	 	(ii)	 	LIBOR; and
	 
	 	(iii)	 	Mandatory Cost, if any.

 

4

	 	(d)	 	The term for each Interest Period shall be one, three, or 6 months, or such
other period as the Borrower and Lender may agree, provided that no Interest Period
shall extend beyond the Repayment Date. The Borrower may request an Interest Period by
means of the Utilisation Request in respect of the initial Interest Period, and in a
Selection Notice if the Loan has already been drawn.
	 
	 	(e)	 	Each Selection Notice shall be delivered not later than the Notification Time 2
Business Days prior to first day of the Interest Period concerned. If the Borrower
fails to deliver a Selection Notice then the relevant Interest Period shall be one
month.
	 
	 	(f)	 	Each Interest Period other than the initial Interest Period shall start on the
last day of the preceding Interest Period.
	 
	 	(g)	 	The initial Interest Period shall start on the date of drawdown and end on
22nd June, 2006 and the applicable interest rate for the initial Interest
Period shall be 4.96500% inclusive.
	 
	 	(h)	 	The Lender agrees to promptly notify the Borrower of the rate of interest
applicable for each Interest Period.

	5.	 	Utilisation Fee
	 
	 	 	The Borrower will pay the Lender on 22nd June 2006 a utilisation fee of
0.015% calculated on the amount of the Loan.

	6.	 	Repayment, Prepayment & Cancellation

	 	(a)	 	The Loan shall be repaid in one amount on the Repayment Date.
	 
	 	(b)	 	The Borrower shall not repay all or any part of any Loan except in the manner
expressly provided for in this agreement.
	 
	 	(c)	 	Provided no drawing has been made, the Borrower may by not less than three
Business Days’ written notice to the Lender cancel the Facility in whole, but not in
part.

	7	 	Payments

	 	(a)	 	The repayment of principal and payment of interest and other amounts due to the
Lender under this agreement shall be made in Dollars by 10 a.m. New York time on the
due date in same day funds to the account of the Lender with such bank in New York or
any other financial centre in the United States of America as the Lender shall from
time to time stipulate.
	 
	 	(b)	 	All payments shall be made free and clear of any set-off, counterclaim,
restriction or condition whatsoever and without any deduction in respect of taxes,
duties, levies, imposts, charges, fees or withholdings of any nature whether made
before or after the date of this agreement.

 

5

	 	(c)	 	In the event of the Borrower being compelled by law to make any such deduction,
the Borrower shall forthwith pay the Lender such additional amounts as may be necessary
to ensure that the aggregate of the net amounts received by the Lender, after such
deduction or withholding, shall equal the amount which would have been received in the
absence of such deduction or withholding. In such event the Borrower shall provide the
Lender within 45 days of the date of such payment with a certified copy of the receipt
evidencing the payment of such tax or other deduction issued by the relevant taxing
authority.

	8.	 	Representations and Warranties
	 
	 	 	The Borrower makes the representations and warranties set out in this clause.

	 	(a)	 	It is a corporation duly constituted and validly existing under the laws of the
Commonwealth of Puerto Rico and that it has all authorisations required to carry on its
business.
	 
	 	(b)	 	Its execution of this agreement and the performance of its terms are within the
Borrower’s powers and have been duly authorised by all necessary actions and do not and
will not contravene any law or any contractual or other restriction binding upon the
Borrower.
	 
	 	(c)	 	This agreement constitutes a legally binding obligation of the Borrower
enforceable in accordance with its terms.
	 
	 	(d)	 	Its obligations in respect of any utilisation of the Facility do not and will
not conflict with any law or regulation applicable to it, including without limitation
exchange and other controls of the Federal Reserve Board.
	 
	 	(e)	 	Its payment obligations in respect of utilisations under the Facility will at
all times rank pari passu with the claims of all its other unsecured creditors (save
for claims mandatorily preferred by law applying generally).
	 
	 	(f)	 	All consents, licences, approvals, authorisations and registrations which are
required in connection with the execution, delivery, performance, legality and
enforceability of this agreement have been duly obtained or effected, as the case may
be, and are in full force and effect.
	 
	 	(g)	 	All amounts payable by the Borrower under this agreement may be made free and
clear of and without deduction for or on account of any Tax.
	 
	 	(h)	 	No stamp or registration duty or similar taxes or charges are payable in the
Commonwealth of Puerto Rico in respect of this agreement.
	 
	 	(i)	 	The execution by the Borrower of this agreement constitutes, and performance of
its terms will constitute, private and commercial acts, and the Borrower will not be
able to claim immunity from suit or other legal process in any proceedings taken in
relation to this agreement.
	 
	 	(j)	 	The choice of English law as the governing law of this agreement will be
recognised and enforced in its jurisdiction of incorporation. Any judgment obtained in
England in relation to this agreement will be recognised and enforced in its
jurisdiction of incorporation.

 

6

	 	(k)	 	No Early Termination Event is continuing or might reasonably result from making
a drawing under this Facility.
	 
	 	(l)	 	No litigation, arbitration or administrative proceedings of or before any
court, which, if adversely determined, might reasonably be expected to have a Material
Adverse Effect have (to the best of its knowledge and belief) been started or
threatened against it.

These representations and warranties shall be deemed to be repeated by reference to the
facts and circumstances then existing on the date of the Utilisation Request, on the date of
drawing and on the date of each Selection Notice.

	9.	 	Covenants
	 
	 	 	The Borrower hereby undertakes to the Lender that during the life of this facility and
while any amount is owing to the Lender under this agreement it will:

	 	(a)	 	forward to the Lender its audited annual report and accounts as soon as these
are available to its shareholders and will provide the Lender with such other financial
information as the Lender may reasonably request from time to time;
	 
	 	(b)	 	promptly advise the Lender of the occurrence of any event which constitutes or
with the lapse of time or giving of notice or both would constitute an Early
Termination Event;
	 
	 	(c)	 	promptly obtain, maintain and comply with any authorisations, licences and
permissions required under any law or regulation to enable it to perform its
obligations under, or for the validity or enforceability of, this agreement; and
	 
	 	(d)	 	refrain from making any substantial change to the general nature or scope of
its business.

	10.	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for the Lender to perform any of its
obligations as contemplated by this agreement or to fund or maintain the Loan, then upon
notification by the Lender to the Borrower the Facility shall be immediately cancelled and
the Borrower shall repay the Loan on the date specified by the Lender in such notice, being
no earlier than the last day of any applicable grace period permitted by law.

 

7

	11.	 	Market Disruption

(a) If LIBOR falls to be determined by reference to rates provided by the Reference Banks
and a reference bank does not supply an offered rate by noon two Business Days before the
first day of the Loan, the applicable LIBOR shall be determined on the basis of the
quotations of the remaining Reference Banks.

(b) If a Market Disruption Event occurs at the time LIBOR is to be determined, then the
Lender shall promptly notify the Borrower and the rate of interest applicable to the Loan
shall be the rate which represents the sum of the Margin, Mandatory Cost, if any and the
cost of funding for the Loan from whatever source the Lender may reasonably select.

(c) If a Market Disruption Event occurs and the Borrower so requires, the Lender and the
Borrower shall enter into negotiations (for a period of not more then 10 days) with a view
to agreeing a substitute basis for determining the rate of interest. Any alternative basis
agreed pursuant to clause 11(b) shall be binding on the Borrower and the Lender.

	12.	 	Early Termination

If:

	 	(a)	 	the Borrower fails to pay any sum due to the Lender under this agreement on its
due date; or
	 
	 	(b)	 	the Borrower commits any breach of or omits to observe any other obligation
accepted or undertaking given under this agreement; or
	 
	 	(c)	 	any representation, warranty or statement made by the Borrower pursuant to this
agreement proves to have been incorrect as of the date it was made (or deemed made) or
is breached; or
	 
	 	(d)	 	any indebtedness of the Borrower becomes or is capable of being declared due
prior to its due date for repayment, or the Borrower defaults in the repayment when due
of any indebtedness or in paying on the due date any sum payable under any guarantee,
or indemnity given by it; or
	 
	 	(e)	 	any security interest securing financial indebtedness over any asset of the
Borrower becomes enforceable; or
	 
	 	(f)	 	the Borrower is unable or admits inability to pay its debts as they fall due,
suspends making payments on any of its debts or commences negotiations with creditors
with a view to rescheduling any of its indebtedness; or the value of its assets is less
than its liabilities (taking into account contingent and prospective liabilities); or a
moratorium is declared in respect of any of its indebtedness; or
	 
	 	(g)	 	any corporate action, legal proceedings or other procedure or step is taken in
relation to the Borrower regarding (i) the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution, administration or reorganisation (ii) a
composition, assignment or arrangement with creditors; or (iii) the appointment of a
liquidator, receiver, administrator, administrative receiver or other similar officer;
or (iv) any analogous procedure or step is taken in any jurisdiction; or
	 
	 	(h)	 	the Borrower ceases to carry on its business, or a substantial part of its
assets are seized or appropriated for any reason; or

 

8

	 	(i)	 	any governmental or other registration licence or approval necessary to enable
the Borrower to continue its business or to comply with or perform any of its
obligations under this agreement is revoked, withdrawn, modified or withheld or
otherwise fails to remain in full force and effect, or
	 
	 	(j)	 	the person(s) who now have control or voting control of the Borrower cease to
have control or voting control of the Borrower; or
	 
	 	(k)	 	it is, or becomes, unlawful for the Borrower to perform any of its obligations
under this agreement; or
	 
	 	(l)	 	any event, or series of events occurs which, in the opinion of the Lender,
might produce a Material Adverse Effect; or
	 
	 	(m)	 	the Borrower fails to comply with the regulations of the Federal Reserve Board
or any other regulations, legislation or license applicable to it as a bank holding
company, or any consent, authorisation, license, registration or approval from any
regulatory or other authority required by the Borrower in the conduct of its business
is not granted or is revoked or terminated or expires and is not renewed or otherwise
ceases to be in full force and effect; or
	 
	 	(n)	 	the Guarantee ceases to be in full force and effect or notice of discontinuance
of the Guarantee is received;

then upon the happening of such event the obligations of the Lender under this agreement
shall immediately terminate and the Lender shall have the right to make the Loan, together
with accrued interest and any other amount owing, due and payable on demand.

The Borrower will pay on demand interest on any overdue amounts at the rate which is 2% per
annum above the cost to the Lender of funding such amounts for such period or consecutive
periods as it may select running from the due date for such amounts until payment in full by
the Borrower.

	13.	 	Indemnity

	 	(a)	 	The Borrower shall indemnify the Lender on demand against all losses and
expenses incurred by the Lender arising out of the occurrence of an Early Termination
Event and/or funding the Loan if requested by the Borrower in a Utilisation Request but
not made by reason of the operation of any one or more of the provisions of this
agreement (other than by reason of default or negligence by the Lender) and/or the
payment of the Loan in whole or in part being made by the Borrower other than on its
due date. The Lender’s certificate of the amount of such losses (setting out in
reasonable detail the basis for calculation of such amount and following, where
relevant, standard market practice) shall in the absence of manifest error be
conclusive and binding on the Borrower.
	 
	 	(b)	 	The Borrower shall pay to the Lender an amount equal to the loss, liability or
cost which the Lender determines will be or has been (directly or indirectly) suffered
for or on account of any Tax, in connection with the Loan other than a Tax assessed on
the Lender under the law of the jurisdiction 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 by the Lender.

 

9

	14.	 	Termination of Facility

This agreement shall terminate on the Repayment Date except in respect of any amount,
actual or contingent, outstanding on that date.

	15.	 	Benefit of Agreement

	 	(a)	 	This agreement shall be binding upon and shall inure only to the benefit of the
Borrower and the Lender and their respective successors and assigns provided that no
party shall assign or transfer any of its respective rights or obligations under this
agreement without the prior written consent of the other party.
	 
	 	(b)	 	This agreement shall not otherwise confer any benefit on or be enforceable by a
third party.

	16.	 	Miscellaneous

In addition to interest and all other amounts payable under this agreement the Borrower
shall pay the Lender on demand any cost or loss to the Lender consequent on the introduction
of or any change in any applicable law, regulation, requirement, directive or request or any
change in its interpretation by any relevant governmental, fiscal, monetary or other
authority or by any self-regulating organisation or court of competent jurisdiction
(including without limitation any request or requirement which affects the manner in which
the Lender allocates its capital resources to its obligations under this agreement) the
effect of which is to increase the cost or reduce the return to the Lender.

	17.	 	Notices

All notices, requests, demands, consents and other communications given or sent under this
agreement shall be in writing and (unless otherwise indicated) mailed, or faxed to the
applicable party at its address indicated below or at such other address as such party may
designate by written notice to the other party.

	 	 	 	 	 	 	 
	 

	 	If to the Borrower:
	 	 	 	Santander Bancorp,
	 

	 	 	 	 	 	Attn: Treasury Back Office
	 

	 	 	 	 	 	207 Ponce de Leon Ave.
	 

	 	 	 	 	 	5th Floor
	 

	 	 	 	 	 	San Juan, PR 00917
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone: 1 – 787 – 777 – 4417
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile: 1 – 787 – 777 – 4193
	 
	 	 	 	 	 	 
	 	 	 	 	or such other office of the Borrower as may be notified to the Lender
	 	 	 	 	in writing.

 

10

	 	 	 	 	 	 	 
	 	 	If to the Lender (other than operational notices): 	Lloyds TSB Bank plc,
	 

	 	 	 	 	 	Financial Institutions,
	 

	 	 	 	 	 	25 Gresham Street
	 

	 	 	 	 	 	London EC2V 7HN
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone: +44 20 7661 4771
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile: 44 20 7661 4790
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	SWIFT: LLOYDGB2L
	 
	 	 	 	 	 	 
	 	 	 	 	or such other office of the Lender as may be notified to the Borrower
	 	 	 	 	in writing.
	 
	 	 	 	 	 	 
	 	 	If to the Lender (for operational notices):	 	Lloyds TSB Bank plc
	 

	 	 	 	 	 	Loans Administration Department
	 

	 	 	 	 	 	Bank House
	 

	 	 	 	 	 	Wine Street
	 

	 	 	 	 	 	Bristol BS1 2AN
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone: +44 117 923 3359/3477
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile: +44 117 923 3367
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	SWIFT: LLOYDGB2L
	 
	 	 	 	 	 	 
	 	 	 	 	or such other office of the Lender as may be notified to the Borrower
	 	 	 	 	in writing.

All such notices, requests, demands, consents or other communications shall be deemed to
have been duly given when received in legible form by the party to which they are required
or permitted to be given or made under this agreement.

All fax communications made by the Borrower shall be promptly confirmed by letter, but so
that a failure to confirm shall not affect the validity of the original fax communication.
All communications received by the Lender by fax which appear to be given by an authorised
signatory of the Borrower and are believed by the Lender to be genuine, shall have the same
validity as a communication received by mail.

	18.	 	Governing Law

The parties hereto expressly agree that this agreement shall be construed interpreted and
governed in all respects in accordance with the laws of England. The Borrower hereby agrees
to submit to the jurisdiction of the English Courts but this shall not prejudice the rights
of the Lender in any other jurisdiction where proceedings may lawfully be commenced against
the Borrower.

 

11

Please signify your acceptance of the terms of this agreement by signing and returning the attached
counterpart.

Yours faithfully,

For and on behalf of

LLOYDS TSB BANK PLC

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Richard Bowser
	 	 
	 	 	 	/s/ Adrian Tooth
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Authorised Signatory	 	 	 	 	 	Authorised Signatory	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Richard Bowser
	 	 	 	 	 	Adrian Tooth	 	 
	 

	 	 	 	Relationship Director
	 	 	 	 	 	Relationship Manager	 	 

Accepted by and agreed to

For and on behalf of

SANTANDER BANCORP

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Carlos M. García
	 	 
	 	 	 	/s/ Juan P. Pérez Hanley
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Authorised Signatory	 	 	 	 	 	Authorised Signatory	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Carlos M. García
	 	 	 	 	 	Juan P. Pérez Hanley	 	 
	 

	 	 	 	Executive Vice President
	 	 	 	 	 	Senior Vice President	 	 

 

 

ANNEX I

Utilisation Request

To: Lloyds TSB Bank plc

Loans Administration Dept

Bank House

Wine Street

Bristol BS1 2AN

From: Santander BanCorp,

[Address]

[Date]

Dear Sirs,

Santander BanCorp

USD 725,000,000 Loan Agreement dated 27th February, 2006 (the “Agreement”)

	1.	 	We wish to borrow the Loan on the following terms:

Proposed utilisation date:          [ xxx ] (or if that is not a Business Day, the next Business Day).

Amount:                                     USD 725,000,000.

Initial Interest Period:                Date of drawdown to 22nd June, 2006.

	2.	 	The proceeds of the Loan should be credited to:

Account [ xxx ] of Santander BanCorp

[Name of Bank]

[Address of Bank]

	3.	 	We confirm that no Early Termination Event has occurred under the Agreement.
	 
	4.	 	This Utilisation Request is irrevocable.

Yours truly,

Santander BanCorp

By:

Authorised Signatory

 

 

ANNEX II

Selection Notice

To: Lloyds TSB Bank plc

Loans Administration Dept

Bank House

Wine Street

Bristol BS1 2AN

From: Santander BanCorp,

[Address]

[Date]

Dear Sirs,

Santander BanCorp

USD 725,000,000 Loan Agreement dated 27th February 2006 (the “Agreement”)

	1.	 	We refer to the Loan and the current Interest Period ending on [      ].
	 
	2.	 	We request that the next Interest Period for the Loan is [      ]:
	 
	3.	 	This Selection Notice is irrevocable.

Yours truly,

Santander BanCorp

By:

Authorised Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]