Document:

FLOOR
PLAN FINANCE AGREEMENT

       

      This Floor Plan Finance Agreement
(“Agreement”) is between AVANTAIR, INC., 4311 General Howard Drive, Clearwater,
FL  33762, Telephone: 727-539-0071, Fax: 727-539-7007, hereinafter
referred to as the "Borrower," and MIDSOUTH SERVICES, INC., or assigns, 800
Druid Road West, Clearwater, FL 33756, Telephone:  727-461-0635, Fax:
727-461-0734, hereinafter referred to as the "Lender."  Escrow agent
will be INSURED AIRCRAFT TITLE SERVICE, 4848 S.W. 36th Street,
Oklahoma City, OK  73179, Telephone:  800-654-4882,
Fax:  405-681-9299, hereinafter referred to as the "Escrow
Agent."

      

      

      WHEREAS, the Borrower has
certain Piaggio P-180 Aircraft beginning with Unit #47 with Serial Number 1181
and U.S. Registration Number 189SL (“Aircraft”) that they elect to finance
pursuant to this Agreement beginning on or about April 24, 2009 (“Initial
Delivery”).  The Net Purchase Price for the Aircraft is attached as
“Attachment A”;

      

      WHEREAS, Lender shall loan
Borrower the Net Purchase Price on the actual delivery date of each Aircraft
listed on Attachment A (“Delivery Date”) pursuant to the terms and conditions of
this Agreement.

      

      Now
therefore, in consideration of the terms and conditions herein contained, the
parties agree as follows:

      

      
        	
                 
      

              	
                1.

              	
                Term.  The
      term of this Agreement shall commence on the actual date of the Initial
      Delivery for N189SL and shall terminate twelve (12) months thereafter
      (“Term”).  Borrower shall also have to sole option to terminate
      this Agreement at any time and for any reason during the Term by giving
      Lender ninety (90) days advance written notice (“Early
      Termination”).  Notwithstanding the foregoing, in the event that
      Borrower elects to terminate this Agreement solely because they receive a
      bona fide offer with more favorable financing from an alternate lending
      institution, the termination shall be subject to Section 8
      below.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Purchase
      Price.  On or
      before each Delivery Date, Lender agrees to pay an amount up to the Net
      Purchase Price as specified on Attachment A for the applicable Aircraft.
      Borrower shall provide Lender with an invoice from Piaggio America
      indicating the balance due for the purchase of the
      Aircraft.  Lender shall have the option to wire the Net Purchase
      Price directly to Piaggio America on the Delivery Date in lieu of using
      the Escrow Account, which shall be determined at their sole
      discretion.  Borrower shall notify Lender at least ten (10) days
      prior to the anticipated Delivery Date of their intention to have Lender
      loan the Net Purchase Price for an Aircraft. In addition, it is agreed
      between the parties that Lender shall only be required to loan the Net
      Purchase Price for one Aircraft at a time pursuant to this Floor Plan
      Finance Agreement.  However, Lender agrees to loan the Net
      Purchase Price for each Aircraft listed on Attachment A assuming that
      Borrower relinquishes the debt for the prior Aircraft prior to Lender
      loaning the Net Purchase Price for the subsequent
  Aircraft.

              

      

      

      
        	
                 
      

              	
                3.

              	
                Transaction
      Fee.   As
      consideration for Lender providing the Net Purchase Price for the Aircraft
      during the Term of this Agreement, Borrower agrees to pay Lender a monthly
      fee in the amount of Eighty Two Thousand Five Hundred U.S. Dollars
      ($82,500.00) (“Transaction Fee”).  The initial Transaction Fee
      shall be due in arrears one month after the Delivery Date of N189SL, which
      shall be on or around May 24, 2009.  After the Delivery Date of
      N189SL, the payment of the Transaction Fee shall be due each month
      thereafter for the remainder of the Term or until the date of the Early
      Termination, whichever occurs first.  Borrower shall remit the
      Transaction Fee to Lender via wire
transfer.

              

      

       

      
        
           

        

        
          Page 1 of
4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                4.

              	
                Insurance.  Borrower
      shall maintain adequate insurance on the Aircraft and provide Lender and
      Lender’s financial institution with a Certificate of Insurance listing
      Lender’s financial institution as lien holder and Lender as an additional
      insured.

              

      

      

      
        	
                 
      

              	
                5.

              	
                Title
      and Liens.  Borrower
      agrees that on the Actual Delivery Date, Lender shall be permitted to file
      a lien on the Aircraft securing the amount of the Net Purchase Price paid
      to manufacturer.  On the Actual Delivery Date, Borrower and
      Lender may agree to allow title to transfer from Piaggio America to
      MidSouth Services, Inc, instead of from Piaggio America to Avantair,
      Inc.  All liens imposed on the Aircraft by Lender must be
      removed on or before the date that Borrower repays the Net Purchase Price
      to Lender so that Borrower has free and clear title to the Aircraft,
      unless Borrower is in default by not paying the Transaction Fee after
      given a ten (10) day period to cure the default as set forth in Section 7
      below.

              

      

      

      
        	
                 
      

              	
                6.

              	
                Release
      of Liens.  Prior to
      the date that Borrower repays the Net Purchase Price to Lender (“Avantair
      Actual Delivery Date”), Lender will place any required Release(s) of Lien
      with Escrow Agent.  Lender shall be notified at least seven (7)
      days prior to the Avantair Actual Delivery Date.  Lender hereby
      agrees to fully cooperate with Borrower and Escrow Agent to effect, amend,
      discharge and/or consent to registrations with respect to the Aircraft on
      the International Registry for the benefit of Borrower and/or their
      fractional owners.  Lender also shall provide a letter of
      instruction to the Escrow Agent or any other person designated by Lender
      granting the person authority to release any and all liens on the Aircraft
      that were imposed by Lender in the event of Lender’s death or incapacity
      which could preclude such release of
liens.

              

      

      

      
        	
              	
                7.

              	
                Default.  Upon
      failure of Lender, without default by Borrower, to comply with the terms
      and conditions of this Agreement, Borrower may elect to cancel this
      agreement upon written notice to Lender, however, no breach shall be
      deemed to have occurred until Lender has ten (10) days to cure, which
      shall run from the date of receipt of written notice (e-mail or facsimile
      acceptable).  Borrower retains the right to retain any
      Transaction Fees owed to Lender, not as forfeiture, but as liquidated
      damages for Borrower’s breach of this
Agreement.

              

      

      

      
        	
                 
      

              	
                Upon
      failure of the Borrower, without default of Lender, to comply with the
      terms and conditions of this Agreement, Lender may elect to cancel this
      agreement upon written notice to Borrower, however, no breach shall be
      deemed to have occurred until Borrower has ten (10) days to cure, which
      shall run from the date of receipt of written notice (e-mail or facsimile
      acceptable).  In the event of a breach by Borrower, Lender shall
      be permitted to use any adequate remedy at law to recover damages caused
      by the breach.  Borrower shall position blank bills of sale with
      the Escrow Agent so that title in the Aircraft may be transferred to
      Lender in the event that Borrower’s material default of this Agreement
      remains uncured following Lender’s notice to
  cure.

              

      

      

      
        	
                 
      

              	
                8.

              	
                Right
      of First Refusal.   During
      the Term of this Agreement, Lender shall have a right of first refusal to
      provide financing to Borrower for the purchase of Aircraft from Piaggio
      America in the event that Borrower receives approved financing from a
      lending institution and elects to terminate this
      Agreement.  Before Borrower can terminate this agreement and
      replace Lender with another lending institution, Borrower must notify
      Lender in writing by providing (i) a notification of bona fide approval
      from a lending institution; and (ii) a brief explanation of the material
      terms of the financing, which shall include the term and rate of the
      financing.  If Lender fails to exercise their right of first
      refusal by not providing Borrower with an approval for financing that is
      equal to or better than the terms and rates provided by the lending
      institution by notifying Borrower in writing within ten (10) business days
      from the date of the initial notice by Borrower, then Borrower shall have
      the absolute right to terminate this Agreement and enter into a financing
      arrangement with the lending institution.  Lender agrees that
      this Agreement shall be terminated on or before ninety (90) days from the
      initial notice by Borrower.  Notwithstanding the foregoing,
      Lender shall use its best efforts to terminate this Agreement within sixty
      (60) days from the date of the initial notice in the event that the ninety
      (90) day period will cause Borrower to lose the more favorable financing
      terms.  In the event that Lender exercises their right of first
      refusal, Lender and Borrower shall terminate this Agreement within thirty
      (30) days from Lender’s notice and both parties shall enter into a revised
      Floor Plan Finance Agreement that reflects terms that are equal to or more
      favorable than the bona fide offer made by the lending
      institution.  The right of first refusal discussed herein shall
      be limited solely to instances where Borrower is terminating this
      Agreement to receive more favorable financing from an alternate lending
      institution.  A lending institution shall include but not be
      limited to any bank, business entity, trust, or individual that has agreed
      to provide financing to Borrower for the purchase of the
      Aircraft.  Further, the right of first refusal applies solely to
      this Agreement and may not be enforced upon any other agreement between
      Lender and Borrower.

              

      

       

      
        
           

        

        
          Page 2 of
4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                9.

              	
                Excusable
      Delay.  Neither
      Lender nor Borrower shall be liable to each other for any failure or delay
      in performing any of their obligations hereunder caused by an act of God,
      the public enemy, strike or labor dispute, governmental regulation or
      priorities and force majeure not involving the fault or negligence of
      either party.

              

      

      

      
        	
              	
                10.

              	
                Assignment.   This
      Agreement may not be assigned and any purported assignment shall be
      without force or legal effect unless the assignment is approved in writing
      by both parties.

              

      

       

      
        	
              	
                11.

              	
                Amendment.  This
      Agreement shall not be modified or amended except by themutual consent of
      the parties in writing.

              

      

       

      
        	
              	
                12.

              	
                      
                  Partial
      Illegality.  If any one
      or more provisions of this Agreement shall be found to be illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the remaining provisions shall not in any way be affected or
      impaired.

                

              

      

       

      
        
          	
                	
                  13.

                	
                  Notification.  For the
      purposes of negotiating and finalizing this Agreement, any document,
      including this Agreement, transmitted by facsimile or e-mail, shall be
      treated in all manner and respects as an original document.  The
      signature of any party on such document shall be considered for these
      purposes as an original signature. Any such document shall be considered
      to have the same binding legal effect as an original document. At the
      request of either party, any such document shall be re-executed by both
      parties in the original form.  In consideration of the promises
      made and value received hereunder, the undersigned parties hereby agree
      that, after a document has been executed and transmitted by facsimile or
      e-mail, neither party shall raise the use of a facsimile or e-mail, or the
      lack of a document bearing an original signature, as a defense to this
      Agreement and forever waive such
defense.

                

        

      

      

      
        
          	
                	
                  14.

                	
                  International
      Registry.  Borrower
      and Lender shall comply with the Cape Town Convention Protocol for
      International Registry Regulations and Procedures regarding the
      International Registration of the Aircraft prior to
      closing.  Each party shall bear the cost for registration of
      their company with the International Registry and any fees associated
      therewith.

                

        

      

       

      
        
           

        

        
          Page 3 of
4

          
            

          

        

        
           

        

      

      
         

        
          	
                	
                  15. 

                	
                   General.

                

        

         

        
          	
                	
                  A. 

                	
                  In
      all respects, time shall be of the essence in this
    Agreement.

                

        

      

      

      
        	
              	
                B.

              	
                This
      agreement shall bind and inure to the benefit of the parties hereto and
      their
      executors, administrators, heirs and
  assigns.

              

      

       

      
        	
                 
      

              	
                C.

              	
                This
      agreement may be executed in two or more counterparts, each of which shall
      be deemed an original and shall be effective when executed by both
      parties.

              

      

      

      
        	
                 
      

              	
                D.

              	
                This
      agreement shall supersede the previous Floor Plan Finance Agreement dated
      July 30th,
      2008, which shall automatically terminate on the date on the date that the
      loaned amount for the aircraft associated with the July 30th,
      2008 Floor Plan has been satisfied by
  Borrower.

              

      

      

      Signed,
sealed and delivered this 2nd day of
April, 2009.

      

      

      
        	
                BORROWER:

              	
                LENDER:

              
	
                AVANTAIR,
      INC.

              	
                MIDSOUTH
      SERVICES, INC.

              
	 
      	 
      	 
      	 
      
	
                /s/ Richard Pytak

              	 
      	
                /s/ Hugh Fuller

              	 
      
	
                Signature

              	
                Signature

              
	 
      	 
      	 
      	 
      
	
                C.F.O. 

              	 
      	
                President

              	 
      
	
                Title

              	
                Title

              
	 
      	 
      	 
      	 
      
	
                April 2, 2009 

              	 
      	
                April 2, 2009

              	 
      
	
                Date

              	
                Date

              

      

       

      
        
           

        

        
          Page 4 of
4EXHIBIT 4(a)(i)

Exhibit 4ai

Execution Copy

$2,100,000,000

FACILITY AGREEMENT

dated 2 May 2008

for

INTERCONTINENTAL HOTELS GROUP PLC

arranged by

BANK OF AMERICA, N.A.

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

BARCLAYS CAPITAL

HSBC BANK PLC

LLOYDS TSB CORPORATE MARKETS

THE ROYAL BANK OF SCOTLAND PLC

SOCIÉTÉ GÉNÉRALE CORPORATE & INVESTMENT BANKING

and

WESTLB AG, LONDON BRANCH

with

HSBC BANK plc

acting as Agent

Linklaters

Linklaters LLP

Ref: PHPS/NYM/LBN

 

 

CONTENTS

	 	 	 	 	 
	CLAUSE	 	PAGE
	SECTION 1
	 	 	 	 
	INTERPRETATION
	 	 	 	 
	1. Definitions and interpretation

	 	 	1	 
	SECTION 2
	 	 	 	 
	THE FACILITIES
	 	 	 	 
	2. The Facilities

	 	 	14	 
	3. Purpose

	 	 	15	 
	4. Conditions of Utilisation

	 	 	15	 
	SECTION 3
	 	 	 	 
	UTILISATION
	 	 	 	 
	5. Utilisation

	 	 	17	 
	6. Optional Currencies

	 	 	18	 
	SECTION 4
	 	 	 	 
	REPAYMENT, PREPAYMENT AND CANCELLATION
	 	 	 	 
	7. Repayment

	 	 	21	 
	8. Prepayment and cancellation

	 	 	21	 
	SECTION 5
	 	 	 	 
	COSTS OF UTILISATION
	 	 	 	 
	9. Interest

	 	 	26	 
	10. Interest Periods

	 	 	27	 
	11. Changes to the calculation of interest

	 	 	28	 
	12. Fees

	 	 	29	 
	SECTION 6
	 	 	 	 
	ADDITIONAL PAYMENT OBLIGATIONS
	 	 	 	 
	13. Tax gross-up and indemnities

	 	 	30	 
	14. Increased costs

	 	 	36	 
	15. Other indemnities

	 	 	37	 
	16. Mitigation by the Lenders

	 	 	38	 
	17. Costs and expenses

	 	 	38	 
	SECTION 7
	 	 	 	 
	GUARANTEE
	 	 	 	 
	18. Guarantee and indemnity

	 	 	40	 
	SECTION 8
	 	 	 	 
	REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
	 	 	 	 
	19. Representations

	 	 	43	 
	20. Information undertakings

	 	 	44	 
	21. Financial covenants

	 	 	48	 
	22. General undertakings

	 	 	50	 
	23. Events of Default

	 	 	55	 
	SECTION 9
	 	 	 	 
	CHANGES TO PARTIES
	 	 	 	 
	24. Changes to the Lenders

	 	 	58	 
	25. Changes to the Obligors

	 	 	61	 

i

 

	 	 	 	 	 
	CLAUSE	 	PAGE
	SECTION 10
	 	 	 	 
	THE FINANCE PARTIES
	 	 	 	 
	26. Role of the Agent and the Arranger

	 	 	63	 
	27. Conduct of business by the Finance Parties

	 	 	67	 
	28. Sharing among the Finance Parties

	 	 	67	 
	SECTION 11
	 	 	 	 
	ADMINISTRATION
	 	 	 	 
	29. Payment mechanics

	 	 	69	 
	30. Set-off

	 	 	71	 
	31. Notices

	 	 	71	 
	32. Calculations and certificates

	 	 	73	 
	33. Partial invalidity

	 	 	73	 
	34. Remedies and waivers

	 	 	73	 
	35. Amendments and waivers

	 	 	73	 
	36. Counterparts

	 	 	74	 
	SECTION 12
	 	 	 	 
	GOVERNING LAW AND ENFORCEMENT
	 	 	 	 
	37. Governing law

	 	 	75	 
	38. Enforcement

	 	 	75	 

ii

 

THIS AGREEMENT is dated 2 May 2008 and made between:

	(1)	 	INTERCONTINENTAL HOTELS GROUP PLC incorporated in England and Wales with registration number
05134420 (the “Company”);
	 
	(2)	 	SIX CONTINENTS LIMITED incorporated in England and Wales with registration number 913450 and
INTERCONTINENTAL HOTELS LIMITED incorporated in England and Wales with registration number
4551528 (together with the Company, the “Original Borrowers”);
	 
	(3)	 	SIX CONTINENTS LIMITED incorporated in England and Wales with registration number 913450 and
INTERCONTINENTAL HOTELS LIMITED incorporated in England and Wales with registration number
4551528 (together with the Company, the “Original Guarantors”);
	 
	(4)	 	BANK OF AMERICA, N.A., THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., BARCLAYS CAPITAL, HSBC BANK
PLC, LLOYDS TSB CORPORATE MARKETS, THE ROYAL BANK OF SCOTLAND PLC, SOCIÉTÉ GÉNÉRALE CORPORATE
& INVESTMENT BANKING and WESTLB AG, LONDON BRANCH as mandated lead arrangers (whether acting
individually or together the “Arranger”);
	 
	(5)	 	THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the “Original Lenders”); and
	 
	(6)	 	HSBC Bank plc as agent of the other Finance Parties (the “Agent”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of
Accession Letter).
	 
	 	 	“Additional Borrower” means a company which becomes an Additional Borrower in accordance with
Clause 25 (Changes to the Obligors).
	 
	 	 	“Additional Cost Rate” has the meaning given to it in Schedule 4 (Mandatory Cost formulae).
	 
	 	 	“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance
with Clause 25 (Changes to the Obligors).
	 
	 	 	“Additional Obligor” means an Additional Borrower or an Additional Guarantor.
	 
	 	 	“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding
Company of that person or any other Subsidiary of that Holding Company.
	 
	 	 	“Agent’s Spot Rate of Exchange” means the spot rate of exchange at which the Agent is able to
purchase the relevant currency with the Base Currency in the London foreign exchange market
at or about 11:00 a.m. on a particular day.

 

 

	 	 	“Applicable Accounting Principles” means those accounting principles, standards and practices
on which the preparation of the Original Financial Statements was based and those accounting
policies which were used in the preparation of those financial statements.
	 
	 	 	“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration.
	 
	 	 	“Availability Period” means:

	 	(a)	 	in relation to Facility A, the period from and including the date of this
Agreement to and including the date falling one month prior to the Termination Date
applicable to Facility A; and
	 
	 	(b)	 	in relation to Facility B, the period from and including the date of this
Agreement to and including the date which is one week after the date of this Agreement.

	 	 	“Available Commitment” means, in relation to a Facility, a Lender’s Commitment under that
Facility minus:

	 	(a)	 	the Base Currency Amount of its participation in any outstanding Loans under that
Facility; and
	 
	 	(b)	 	in relation to any proposed Utilisation, the Base Currency Amount of its
participation in any Loans that are due to be made under that Facility on or before the
proposed Utilisation Date,

	 	 	other than, in relation to any proposed Utilisation under Facility A only, that Lender’s
participation in any Facility A Loans that are due to be repaid or prepaid on or before the
proposed Utilisation Date.
	 
	 	 	“Available Facility” means, in relation to a Facility, the aggregate for the time being of
each Lender’s Available Commitment in respect of that Facility.
	 
	 	 	“Base Currency” or “$” means US Dollars.
	 
	 	 	“Base Currency Amount” means, in relation to a Loan, the amount specified in the Utilisation
Request delivered by a Borrower for that Loan (or, if the amount requested is not denominated
in the Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate
of Exchange on the date which is three Business Days before the Utilisation Date or, if
later, on the date the Agent receives the Utilisation Request) adjusted to reflect any
repayment (other than, in relation to Facility B, a repayment arising from a change of
currency), prepayment, consolidation or division of the Loan.
	 
	 	 	“Borrower” means an Original Borrower or an Additional Borrower, unless it has ceased to be a
Borrower in accordance with Clause 25 (Changes to the Obligors).
	 
	 	 	“Borrowings” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Break Costs” means the amount (if any) by which:

	 	(a)	 	the interest (excluding the Margin and Mandatory Costs) which a Lender should
have received for the period from the date of receipt of all or any part of its
participation in a Loan or Unpaid Sum to the last day of the current Interest Period in
respect of that Loan

2

 

	 	 	 	or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last
day of that Interest Period;

	 	 	exceeds:

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

	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in London and:

	 	(a)	 	(in relation to any date for payment, purchase or sale of a currency other than
euro) the principal financial centre of the country of that currency; or
	 
	 	(b)	 	(in relation to any date for payment, purchase or sale of euro) any TARGET Day.

	 	 	“Cash” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Cash Equivalents” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Commitment” means a Facility A Commitment or a Facility B Commitment.
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form set out in Schedule 8
(Form of Compliance Certificate).
	 
	 	 	“Confidentiality Undertaking” means a confidentiality undertaking in the form set out in
Schedule 11 (Form of LMA Confidentiality Undertaking) or in any other form agreed between the
Company and the Agent.
	 
	 	 	“Consolidated Gross Assets” means the consolidated current assets plus consolidated
non-current assets of the Group.
	 
	 	 	“Default” means an Event of Default or any event or circumstance specified in Clause 23
(Events of Default) which would (with the expiry of a grace period and/or the giving of
notice) be an Event of Default.
	 
	 	 	“EBITDA” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“EURIBOR” means, in relation to any Loan in euro:

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

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits in euro for a
period comparable to the Interest Period of the relevant Loan.
	 
	 	 	“euro” or “€” means the single currency of the Participating Member States.
	 
	 	 	“Event of Default” means any event or circumstance specified as such in Clause 23 (Events of
Default).

3

 

	 	 	“Existing Facility” means the £1,600,000,000 facility agreement dated 9 November 2004 (as
amended from time to time) between the Company, the lenders and arrangers named in it and
HSBC Bank plc as agent.
	 
	 	 	“Facility” means Facility A or Facility B.
	 
	 	 	“Facility A” means the revolving loan facility made available under this Agreement as
described in paragraph (a) of Clause 2.1 (The Facilities).
	 
	 	 	“Facility A Commitment” means:

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

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	“Facility A Loan” means a loan made or to be made under Facility A or the principal amount
outstanding for the time being of that loan.
	 
	 	 	“Facility B” means the term loan facility made available under this Agreement as described in
paragraph (b) of Clause 2.1 (The Facilities).
	 
	 	 	“Facility B Commitment” means:

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

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	“Facility B Loan” means a loan made or to be made under Facility B or the principal amount
outstanding for the time being of that loan.
	 
	 	 	“Facility B Repayment Date” means the Termination Date applicable to Facility B.
	 
	 	 	“Facility Office” means the office or offices notified by a Lender to the Agent in writing on
or before the date it becomes a Lender (or, following that date, by not less than five
Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement.
	 
	 	 	“Fee Letter” means any letter or letters dated on or about the date of this Agreement between
the Arranger and the Company (or the Agent and the Company) setting out any fees referred to
in Clause 12 (Fees).
	 
	 	 	“Finance Document” means this Agreement, any Fee Letter, any Accession Letter, any
Resignation Letter and any other document designated as such by the Agent and the Company.
	 
	 	 	“Finance Party” means the Agent, the Arranger or a Lender.

4

 

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

	 	(a)	 	moneys borrowed;
	 
	 	(b)	 	any amount raised by acceptance under any acceptance credit facility or
dematerialised equivalent;
	 
	 	(c)	 	any amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock, commercial paper or any similar instrument (entered into
or issued primarily as a method of raising finance);
	 
	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract
which would, in accordance with IFRS, be treated as a finance or capital lease;
	 
	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they are
sold or discounted on a non-recourse basis);
	 
	 	(f)	 	any amount:

	 	(i)	 	raised under any other transaction (including any forward sale or
purchase agreement) required by IFRS to be shown as a borrowing in the audited
consolidated balance sheet of the Group; or
	 
	 	(ii)	 	raised under any other transaction entered into primarily as a
method of raising finance not required by IFRS to be shown as a borrowing in the
audited consolidated balance sheet of the Group;

	 	(g)	 	for the purpose of Clause 23.5 (Cross default) only, any derivative transaction
entered into in connection with protection against or benefit from fluctuation in any
rate or price (and, when calculating the value of any derivative transaction, only the
marked to market value shall be taken into account);
	 
	 	(h)	 	shares which are expressed to be redeemable prior to the Termination Date for
Facility A;
	 
	 	(i)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
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,

	 	 	but excluding indebtedness owing by a member of the Group to another member of the Group.
	 
	 	 	“Group” means the Company and its Subsidiaries for the time being.
	 
	 	 	“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to
be a Guarantor in accordance with Clause 25 (Changes to the Obligors).
	 
	 	 	“Holding Company” means, in relation to a company or corporation, any other company or
corporation in respect of which it is a Subsidiary.
	 
	 	 	“IFRS” means international accounting standards within the meaning of IAS Regulation
1606/2002 to the extent applicable to the relevant financial statements.
	 
	 	 	“Income Tax Act” means the Income Tax Act 2007.

5

 

	 	 	“Interest Expense” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Interest Period” means, in relation to a Loan, each period determined in accordance with
Clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 9.3 (Default interest).
	 
	 	 	“Joint Venture Entity” means any joint venture company, corporation, partnership, trust or
other entity in any jurisdiction in which a member of the Group owns 50 per cent. or less of
the issued share capital, equity or voting rights.
	 
	 	 	“Lender” means:

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any bank, financial institution, trust, fund or other entity which has become a
Party in accordance with Clause 24 (Changes to the Lenders),

	 	 	which in each case has not ceased to be a Party in accordance with the terms of this
Agreement.
	 
	 	 	“LIBOR” means, in relation to any Loan:

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

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits in the currency of
that Loan and for a period comparable to the Interest Period for that Loan.
	 
	 	 	“LMA” means the Loan Market Association.
	 
	 	 	“Loan” means a Facility A Loan or a Facility B Loan.
	 
	 	 	“Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than
662/3 per cent. of the Total Commitments (or, if the Total Commitments
have been reduced to zero, aggregated more than 662/3 per cent. of the
Total Commitments immediately prior to the reduction).
	 
	 	 	“Managed Assets” means any assets (including, for the avoidance of doubt, any equity interest
in any such asset) of a member of the Group which are sold and become, or remain, the subject
of a management or franchise agreement in favour of the Group.
	 
	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance
with Schedule 4 (Mandatory Cost formulae).
	 
	 	 	“Margin” means at any time the rate per annum determined by reference to the ratio of Net
Borrowings, as at the last day of the last preceding Margin Period, to EBITDA for that Margin
Period (the “Margin Ratio”) in accordance with the following table:

6

 

	 	 	 	 	 	 	 	 	 
	 	 	Margin (per cent. p.a.)	 
	Net Borrowings/EBITDA	 	Facility A	 	 	Facility B	 
	Lower than
3.75:1 but higher than 3.25:1
	 	 	1.05	 	 	 	0.95	 
	 	 
	Equal to or lower than 3.25:1 but
	 	 	0.85	 	 	 	0.75	 
	higher than 2.75:1
	 	 	 	 	 	 	 	 
	 	 
	Equal to or lower than 2.75:1 but
	 	 	0.75	 	 	 	0.65	 
	higher than 2.25:1
	 	 	 	 	 	 	 	 
	 	 
	Equal to or lower than 2.25:1 but
	 	 	0.625	 	 	 	0.575	 
	higher than 1.75:1
	 	 	 	 	 	 	 	 
	 	 
	Equal to or lower than 1.75:1 but
	 	 	0.575	 	 	 	0.525	 
	higher than 1.25:1
	 	 	 	 	 	 	 	 
	 	 
	Equal to or lower than 1.25:1
	 	 	0.525	 	 	 	0.475	 

However:

	(a)	 	until the delivery of the first Margin Certificate required pursuant to Clause
20.3 (Margin Certificate) the applicable Margin shall be 0.85 per cent. per annum in
respect of Facility A and 0.75 per cent. per annum in respect of Facility B;
	 
	(b)	 	any increase or decrease in the applicable Margin, as the case may be, will take
effect for all purposes under this Agreement from the date falling 2 Business Days after
receipt by the Agent of a Margin Certificate as required pursuant to Clause 20.3 (Margin
Certificate);
	 
	(c)	 	if the Company does not deliver the relevant Margin Certificate to the Agent in
accordance with the terms of Clause 20.3 (Margin Certificate), the Margin shall, as from
the date immediately following the last date on which such Margin Certificate should
have been delivered until the date such Margin Certificate is delivered, be 1.05 per
cent. per annum in respect of Facility A and 0.95 per cent. per annum in respect of
Facility B;
	 
	(d)	 	if at any time an Event of Default is continuing, the Margin for Facility A and
Facility B shall, until the date such Event of Default ceases to be continuing, be 1.05
per cent. per annum in respect of Facility A and 0.95 per cent. per annum in respect of
Facility B;
	 
	(e)	 	if at any time a decrease in the Margin is to take effect a Default is
continuing, such decrease shall not take effect at that time but such decrease shall
take effect with effect from the date such Default ceases to be continuing; and
	 
	(f)	 	in this definition, “EBITDA” shall have the same meaning as EBITDA as defined in
Clause 21.3 (Definitions) save that the reference to “Relevant Period” in that
definition

7

 

	 	 	 	shall, for the purposes of calculating the Margin, be substituted with “Margin
Period” and EBITDA shall be adjusted to take into account the pro forma impact of any
acquisitions or disposals (other than of Managed Assets) made during the Margin
Period by a member of the Group.

	 	 	“Margin Certificate” means a certificate substantially in the form set out in Schedule 12
(Form of Margin Certificate).
	 
	 	 	“Margin Period” means the period of 12 months ending on each Quarter Date.
	 
	 	 	“Margin Ratio” has the meaning given to it in the definition of Margin.
	 
	 	 	“Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the ability of the Obligors (taken as a whole) to perform and comply with their
payment obligations under any Finance Document; or
	 
	 	(b)	 	the ability of the Company to perform and comply with its obligations under
Clause 21 (Financial covenants).

	 	 	“Material Subsidiary” means, at any time, any Subsidiary of the Company:

	 	(a)	 	whose gross assets represent 5 per cent. or more of Consolidated Gross Assets or
whose EBITDA represents 5 per cent. or more of consolidated EBITDA of the Group, in each
case, as calculated by reference to the latest financial statements of such Subsidiary
(which shall be audited if such statements are prepared by that Subsidiary) and the
latest audited consolidated financial statements of the Group adjusted in such manner as
the auditors of the Company may determine (which determination shall be conclusive in
the absence of manifest error) (i) to reflect the gross assets and EBITDA of any person
which has become or ceased to be a member of the Group since the end of the financial
year to which the latest audited consolidated financial statements of the Group relate
where such adjustment is requested by the Company and (ii) so that for the purposes of
this definition, the gross assets of the relevant Subsidiary shall be calculated on the
same basis as Consolidated Gross Assets are calculated and/or, as the case may be,
EBITDA of the relevant Subsidiary shall be calculated on the same basis as consolidated
EBITDA for the Group (but, in each case, relating only to the relevant Subsidiary) and
making such adjustments and eliminations as are required to show the same as the
contribution of the relevant Subsidiary to Consolidated Gross Assets and/or, as the case
may be, consolidated EBITDA of the Group; or
	 
	 	(b)	 	to which is transferred all or substantially all of the business, undertaking or
assets of a Subsidiary which immediately prior to such transfer is a Material
Subsidiary, whereupon the transferor Subsidiary shall cease to be a Material Subsidiary
and the transferee Subsidiary shall become a Material Subsidiary under this
sub-paragraph (b) upon the completion of such transfer.

	 	 	Any determination made by the auditors of the Company as to whether a Subsidiary of the
Company is or is not a Material Subsidiary at any time shall be conclusive in the absence of
manifest error.

8

 

	 	 	“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)	 	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; and
	 
	 	(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.

	 	 	The above rules will only apply to the last Month of any period.
	 
	 	 	“Moody’s” means Moody’s Investors Services Inc..
	 
	 	 	“Net Borrowings” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Net Interest Payable” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Obligor” means the Company, a Borrower or a Guarantor.
	 
	 	 	“Optional Currency” means a currency (other than the Base Currency) which complies with the
conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).
	 
	 	 	“Original Financial Statements” means the audited consolidated financial statements of the
Group for the financial period ended 31 December 2007.
	 
	 	 	“Original Obligor” means an Original Borrower or an Original Guarantor.
	 
	 	 	“Participating Member State” means any member state of the European Communities that adopts
or has adopted the euro as its lawful currency in accordance with legislation of the European
Community relating to Economic and Monetary Union.
	 
	 	 	“Party” means a party to this Agreement.
	 
	 	 	“Project Finance Indebtedness” means Financial Indebtedness (in respect of which Security has
been given) incurred by a member of the Group (a “Project Group Member”) for the purposes of
financing the acquisition, construction, development and/or operation of an asset (a “Project
Asset”) where the provider of the Financial Indebtedness has no recourse against any member
of the Group, except for recourse to:

	 	(a)	 	the Project Asset of the Project Group Member or receivables arising from the
Project Asset;
	 
	 	(b)	 	a Project Group Member for the purpose of enforcing Security given by it so long
as:

	 	(i)	 	the recourse is limited to recoveries in respect of the Project
Asset; and
	 
	 	(ii)	 	if the Project Asset does not comprise all or substantially all
of the business of that Project Group Member, the provider of the Financial
Indebtedness does not have the right to take any steps towards its winding up or
dissolution or the appointment of a liquidator, administrator, receiver or
similar officer or person, other than in respect of the Project Asset or
receivables arising therefrom; or

	 	(c)	 	a member of the Group to the extent only of its shareholding in a Project Group
Member.

9

 

	 	 	“Project Group Member” has the meaning given to it in the definition of Project Finance
Indebtedness provided that the principal assets and business of such member of the Group is
constituted by Project Assets and it has no other Financial Indebtedness except Project
Finance Indebtedness.
	 
	 	 	“Qualifying Lender” has the meaning given to it in Clause 13 (Tax gross-up and indemnities).
	 
	 	 	“Quarter Date” means each 31 March, 30 June, 30 September and 31 December in each financial
year of the Company.
	 
	 	 	“Quotation Day” means, in relation to any period for which an interest rate is to be
determined:

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

	 	 	unless market practice differs in the Relevant Interbank Market for a currency, in which case
the Quotation Day for that currency will be determined by the Agent in accordance with market
practice in the Relevant Interbank Market (and if quotations for that currency and period
would normally be given by leading banks in the Relevant Interbank Market on more than one
day, the Quotation Day will be the last of those days).
	 
	 	 	“Reference Banks” means, in relation to LIBOR, Mandatory Costs and EURIBOR the principal
London offices of Barclays Bank PLC, HSBC Bank plc and The Royal Bank of Scotland plc or such
other banks as may be appointed by the Agent in agreement with the Company (such agreement
not to be unreasonably withheld).
	 
	 	 	“Relevant Interbank Market” means, in relation to euro, the European interbank market and, in
relation to any other currency, the London interbank market.
	 
	 	 	“Relevant Period” has the meaning given to it in Clause 21 (Financial covenants).
	 
	 	 	“Repeating Representations” means each of the representations set out in Clauses 19.1
(Status) to 19.4 (Power and authority), paragraph (a) of Clause 19.6 (No Default) and 19.8
(Pari passu ranking).
	 
	 	 	“Resignation Letter” means a letter substantially in the form set out in Schedule 7 (Form of
Resignation Letter).
	 
	 	 	“Rollover Loan” means one or more Facility A Loans:

	 	(a)	 	made or to be made on the same day that one or more maturing Facility A Loans is
or are due to be repaid;
	 
	 	(b)	 	the aggregate amount of which is equal to or less than the maturing Facility A
Loan(s) (unless it is more than the maturing Facility A Loan(s) solely because it arose
as a result of the operation of Clause 6.2 (Unavailability of a currency));
	 
	 	(c)	 	in the same currency as the maturing Facility A Loan(s) (unless it arose as a
result of the operation of Clause 6.2 (Unavailability of a currency)); and
	 
	 	(d)	 	made or to be made to the same Borrower for the purpose of refinancing the
maturing Facility A Loan(s).

10

 

	 	 	“Screen Rate” means:

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

	 	 	displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or
service ceases to be available, the Agent may specify another page or service displaying the
appropriate rate after consultation with the Company and the Lenders.
	 
	 	 	“Security” means a mortgage, pledge, lien, hypothecation, security interest or other charge
or encumbrance entered into for the purpose of securing any obligation of any person.
	 
	 	 	“Selection Notice” means a notice substantially in the form set out in Part II of Schedule 3
(Requests) given in accordance with Clause 10 (Interest Periods) in relation to Facility B.
	 
	 	 	“Specified Time” means a time determined in accordance with Schedule 10 (Timetables).
	 
	 	 	“Sterling” or “£” means the lawful currency for the time being of the United Kingdom.
	 
	 	 	“Subsidiary” means a subsidiary within the meaning of section 736 of the Companies Act 1985
and, for the purpose of Clause 21 (Financial covenants) and in relation to financial
statements of the Group, a subsidiary undertaking within the meaning of section 258 of the
Companies Act 1985, but in this Agreement “Subsidiary” shall for all purposes exclude each
Project Group Member.
	 
	 	 	“Super-Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than 80
per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero,
aggregated more than 80 per cent. of the Total Commitments immediately prior to the
reduction).
	 
	 	 	“TARGET” means the Trans-European Automated Real-time Gross Settlement Express Transfer
payment system which utilises interlinked national real time gross settlement systems and the
European Central Bank’s payment mechanism and which began operations on 4 January 1999.
	 
	 	 	“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:

	 	(a)	 	until such time as TARGET is permanently closed down and ceases operations, any
day on which both TARGET and TARGET2 are; and
	 
	 	(b)	 	following such time as TARGET is permanently closed down and ceases operations,
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 by an Obligor to
pay or any delay in paying by an Obligor any of the same).

11

 

	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988.
	 
	 	 	“Termination Date” means:

	 	(a)	 	in relation to Facility A, the date which is 60 Months after the date of this
Agreement; and
	 
	 	(b)	 	in relation to Facility B the date which is 30 Months after the date of this
Agreement.

	 	 	“Total Commitments” means the aggregate of the Total Facility A Commitments and the Total
Facility B Commitments being $2,100,000,000 at the date of this Agreement.
	 
	 	 	“Total Facility A Commitments” means the aggregate of the Facility A Commitments, being
$1,600,000,000 at the date of this Agreement.
	 
	 	 	“Total Facility B Commitments” means the aggregate of the Facility B Commitments, being
$500,000,000 at the date of this Agreement.
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5
(Form of Transfer Certificate) or a recommended form of the LMA or any other form agreed
between the Agent and the Company.
	 
	 	 	“Transfer Date” means, in relation to a transfer, the later of:

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

	 	 	“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents.
	 
	 	 	“US Dollars” or “$” means the lawful currency for the time being of 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 Request” means a notice substantially in the form set out in Part I of Schedule
3 (Requests).
	 
	 	 	“VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any other tax
of a similar nature.

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

	 	(i)	 	the “Agent”, the “Arranger”, any “Finance Party”, any “Guarantor”, any “Lender”,
any “Obligor” or any “Party” shall be construed so as to include its successors in
title, permitted assigns and permitted transferees;
	 
	 	(ii)	 	“assets” includes present and future properties, revenues and rights of every
description;
	 
	 	(iii)	 	“Barclays Capital” means Barclays Capital (the investment banking division of
Barclays Bank PLC);

12

 

	 	(iv)	 	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, restated (however fundamentally and whether or not more onerously) or replaced
and includes any change in the purpose of, any extension of or any increase in any
facility or the addition of any new facility under that Finance Document or other
agreement or instrument;
	 
	 	(v)	 	“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;
	 
	 	(vi)	 	a “person” includes any individual, firm, company, corporation, government, state
or agency of a state or any association, trust, joint venture, consortium or partnership
(whether or not having separate legal personality);
	 
	 	(vii)	 	a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law but, if not having the force of law,
which is generally complied with by those to whom it is addressed) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;
	 
	 	(viii)	 	“Société Générale Corporate & Investment Banking” means Société Générale Corporate &
Investment Banking (the corporate and investment banking division of Société Générale);
	 
	 	(ix)	 	a “subsidiary” has the meaning given to it in section 736 of the Companies Act
1985 and “subsidiary undertaking” has the same meaning given to it in section 258 of the
Companies Act 1985;
	 
	 	(x)	 	a provision of law is a reference to that provision as amended or re-enacted; and
	 
	 	(xi)	 	a time of day is a reference to London time.

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

	1.3	 	Third Party Rights
	 
	 	 	A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act
1999 to enforce or to enjoy the benefit of any term of this Agreement.

13

 

SECTION 2

THE FACILITIES

	2.	 	THE FACILITIES
	 
	2.1	 	The Facilities
	 
	 	 	Subject to the terms of this Agreement, the Lenders make available to the Borrowers:

	 	(a)	 	a multicurrency revolving loan facility in an aggregate amount equal to the Total
Facility A Commitments; and
	 
	 	(b)	 	a multicurrency term loan facility in an aggregate amount equal to the Total
Facility B Commitments.

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

	2.3	 	Obligors’ agent
	 
	(a)	 	Each Obligor (other than the Company) by its execution of this Agreement or an Accession
Letter irrevocably appoints the Company to act on its behalf as its agent in relation to the
Finance Documents and irrevocably authorises:

	 	(i)	 	the Company on its behalf to supply all information concerning itself
contemplated by this Agreement to the Finance Parties and to give all notices and
instructions (including, if relevant, any Utilisation Request), to execute on its behalf
any Accession Letter, to make such agreements and to effect the relevant amendments,
supplements and variations capable of being given, made or effected by any Obligor
notwithstanding that they may affect the Obligor (including, without limitation, by
increasing the obligations of such Obligor howsoever fundamentally, whether by
increasing the liabilities guaranteed or otherwise), without further reference to or the
consent of that Obligor; and
	 
	 	(ii)	 	each Finance Party to give any notice, demand or other communication to that
Obligor pursuant to the Finance Documents to the Company,

	 	 	and in each case the Obligor shall be bound as though the Obligor itself had given the
notices and instructions (including, without limitation, any Utilisation Request) or executed
or made the agreements or effected the amendments, supplements or variations, or received the
relevant notice, demand or other communication.
	 
	(b)	 	Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement,
variation, notice or other communication given or made by the Obligors’ agent or given to the

14

 

	 	 	Obligors’ agent under any Finance Document on behalf of another Obligor or in connection with
any Finance Document (whether or not known to any other Obligor and whether occurring before
or after such other Obligor became an Obligor under any Finance Document) shall be binding
for all purposes on that Obligor as if that Obligor had expressly made, given or concurred
with it. In the event of any conflict between any notices or other communications of the
Obligors’ agent and any other Obligor, those of the Obligors’ agent shall prevail.

	3.	 	PURPOSE
	 
	3.1	 	Purpose
	 
	(a)	 	Each Borrower shall apply all amounts borrowed by it under Facility A towards general
corporate purposes of the Group.
	 
	(b)	 	Each Borrower shall apply all amounts borrowed by it under Facility B towards bridging
sources of refinancing.
	 
	3.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.
	 
	4.	 	CONDITIONS OF UTILISATION
	 
	4.1	 	Initial conditions precedent
	 
	 	 	No Borrower may deliver a Utilisation Request unless the Agent has received all of the
documents and other evidence listed in Part I of Schedule 2 (Conditions precedent) which
shall be in form and substance reasonably satisfactory to the Agent. The Agent shall notify
the Company and the Lenders promptly upon being so satisfied.
	 
	4.2	 	Further conditions precedent
	 
	(a)	 	The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the
date of the Utilisation Request and on the proposed Utilisation Date:

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

	(b)	 	The Lenders will only be obliged to comply with Clause 6.3 (Change of currency) if, on the
first day of an Interest Period, no Default is continuing or would result from the change of
currency and the Repeating Representations to be made by each Obligor are true in all material
respects.
	 
	4.3	 	Conditions relating to Optional Currencies
	 
	(a)	 	A currency will constitute an Optional Currency in relation to a Loan if it is euro or
Sterling or:

	 	(i)	 	it is readily available in the amount required and freely convertible into the
Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation
Date for that Loan; and

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	 	(ii)	 	it has been approved by the Agent (acting on the instructions of all the Lenders)
on or prior to receipt by the Agent of the relevant Utilisation Request or Selection
Notice for that Loan.

	(b)	 	If by the Specified Time the Agent has received a written request from the Company for a
currency to be approved under paragraph (a)(ii) above, the Agent will notify the Lenders of
that request by the Specified Time. Based on any responses received by the Agent by the
Specified Time, the Agent will confirm to the Company by the Specified Time:

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

	4.4	 	Maximum number of Loans
	 
	(a)	 	A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation:

	 	(i)	 	more than 14 Facility A Loans would be outstanding; or
	 
	 	(ii)	 	more than 6 Facility B Loans would be outstanding.

	(b)	 	A Borrower may not request that a Facility B Loan be divided if, as a result of the proposed
division, more than 6 Facility B Loans would be outstanding.
	 
	(c)	 	Any Loan made by a single Lender under Clause 6.2 (Unavailability of a currency) shall not be
taken into account in this Clause 4.4.

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SECTION 3

UTILISATION

	5.	 	UTILISATION
	 
	5.1	 	Delivery of a Utilisation Request
	 
	 	 	A Borrower may utilise a Facility by delivery to the Agent of a duly completed Utilisation
Request not later than the Specified Time.
	 
	5.2	 	Completion of a Utilisation Request
	 
	(a)	 	Each Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

	 	(i)	 	it identifies the Facility to be utilised;
	 
	 	(ii)	 	the proposed Utilisation Date is a Business Day within the Availability Period
applicable to that Facility;
	 
	 	(iii)	 	the currency and amount of the Utilisation comply with Clause 5.3 (Currency and
amount);
	 
	 	(iv)	 	the proposed Interest Period complies with Clause 10 (Interest Periods); and
	 
	 	(v)	 	it specifies the account and bank (which must be in the principal financial
centre of the country of the currency of the Utilisation or, in the case of euro, the
principal financial centre of a Participating Member State in which banks are open for
general business on that day or London or, such other financial centre as the relevant
Borrower, with the consent of the Agent, may select) to which the proceeds of the
Utilisation are to be credited.

	(b)	 	Only one Loan may be requested in each Utilisation Request.
	 
	5.3	 	Currency and amount
	 
	(a)	 	The currency specified in a Utilisation Request must be the Base Currency or an Optional
Currency.
	 
	(b)	 	The amount of the proposed Loan must be:

	 	(i)	 	if the currency selected is the Base Currency, a minimum of $20,000,000 and in
multiples of $1,000,000, or if less, the Available Facility;
	 
	 	(ii)	 	if the currency selected is Sterling, a minimum of £10,000,000 and in multiples
of £1,000,000, or, if less the Available Facility; or
	 
	 	(iii)	 	if the currency selected is euro, a minimum of €15,000,000, and in multiples of
€1,000,000, or if less, the Available Facility; or
	 
	 	(iv)	 	if the currency selected is an Optional Currency other than Sterling or euro, the
minimum amount (and, if required, integral multiple) as agreed between the Agent, the
Lenders and the Company provided that if no such agreement is reached between the Agent,
the Lenders and the Company the minimum amount shall be the equivalent at that time of

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	 	 	 	$20,000,000 and multiples of $2,000,000, such amount to be rounded as reasonably
determined by the Agent and notified to the Company; and

	 	(v)	 	in any event such that its Base Currency Amount is less than or equal to the
Available Facility.

	5.4	 	Lenders’ participation
	 
	(a)	 	If the conditions set out in this Agreement have been met, each Lender shall make its
participation in each Loan available by the Utilisation Date through its Facility Office.
	 
	(b)	 	The amount of each Lender’s participation in each Loan will be equal to the proportion borne
by its Available Commitment to the Available Facility immediately prior to making the Loan.
	 
	(c)	 	The Agent shall determine the Base Currency Amount of each Loan which is to be made in an
Optional Currency and shall notify each Lender of the amount, currency and the Base Currency
Amount of each Loan and the amount of its participation in that Loan, in each case by the
Specified Time.
	 
	5.5	 	Cancellation of Commitment
	 
	(a)	 	The Total Facility A Commitments shall be immediately cancelled at the end of the
Availability Period for Facility A.
	 
	(b)	 	The Total Facility B Commitments shall be immediately cancelled at the end of the
Availability Period for Facility B.
	 
	6.	 	OPTIONAL CURRENCIES
	 
	6.1	 	Selection of currency
	 
	(a)	 	A Borrower (or the Company on behalf of a Borrower) shall select the currency of a Loan:

	 	(i)	 	(in the case of an initial Utilisation) in a Utilisation Request; and
	 
	 	(ii)	 	(in relation to a Facility B Loan made to it) in a Selection Notice.

	(b)	 	If a Borrower (or the Company on behalf of a Borrower) fails to issue a Selection Notice in
relation to a Facility B Loan, it shall be deemed to have requested that the Loan will remain
denominated for its next Interest Period in the same currency in which it is then outstanding.
	 
	(c)	 	If a Borrower (or the Company on behalf of a Borrower) issues a Selection Notice requesting a
change of currency and the first day of the requested Interest Period is not a Business Day
for the new currency, the Agent shall promptly notify the Company, the relevant Borrower and
the Lenders and the Loan will remain in the existing currency (with Interest Periods running
from one Business Day until the next Business Day) until the next day which is a Business Day
for both currencies, on which day the requested Interest Period will begin.
	 
	6.2	 	Unavailability of a currency
	 
	 	 	If before the Specified Time on any Quotation Day:

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

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	 	 	the Agent will give notice to the relevant Borrower to that effect by the Specified Time on
that day. In this event, any Lender that gives notice pursuant to this Clause 6.2 will be
required to participate in the Loan in the Base Currency (in an amount equal to that Lender’s
proportion of the Base Currency Amount or, in respect of a Rollover Loan, an amount equal to
that Lender’s proportion of the Base Currency Amount of the Rollover Loan that is due to be
made) and its participation will be treated as a separate Loan denominated in the Base
Currency during that Interest Period.
	 
	6.3	 	Change of currency
	 
	(a)	 	If a Facility B Loan is to be denominated in different currencies during two successive
Interest Periods:

	 	(i)	 	if the currency for the second Interest Period is an Optional Currency, the
amount of the Loan in that Optional Currency will be calculated by the Agent as the
amount of that Optional Currency equal to the Base Currency Amount of the Loan at the
Agent’s Spot Rate of Exchange at the Specified Time;
	 
	 	(ii)	 	if the currency for the second Interest Period is the Base Currency, the amount
of the Loan will be equal to the Base Currency Amount;
	 
	 	(iii)	 	(unless the Agent and the Borrower agree otherwise in accordance with paragraph
(b) below) the Borrower that has borrowed the Loan shall repay it on the last day of the
first Interest Period in the currency in which it was denominated for that Interest
Period; and
	 
	 	(iv)	 	(subject to Clause 4.2 (Further conditions precedent)) the Lenders shall
re-advance the Loan in the new currency in accordance with Clause 6.5 (Agent’s
calculations).

	(b)	 	If the Agent and the Borrower that has borrowed the Facility B Loan agree, the Agent shall:

	 	(i)	 	apply the amount paid to it by the Lenders pursuant to paragraph (a)(iv) above
(or so much of that amount as is necessary) in or towards purchase of an amount in the
currency in which the Facility B Loan is outstanding for the first Interest Period; and
	 
	 	(ii)	 	use the amount it purchases in or towards satisfaction of the relevant Borrower’s
obligations under paragraph (a)(iii) above.

	(c)	 	If the amount purchased by the Agent pursuant to paragraph (b)(i) above is less than the
amount required to be repaid by the relevant Borrower, the Agent shall promptly notify that
Borrower and that Borrower shall, on the last day of the first Interest Period, pay an amount
to the Agent (in the currency of the outstanding Facility B Loan for the first Interest
Period) equal to the difference.
	 
	(d)	 	If any part of the amount paid to the Agent by the Lenders pursuant to paragraph (a)(iv)
above is not needed to purchase the amount required to be repaid by the relevant Borrower, the
Agent shall promptly notify that Borrower and pay that Borrower, on the last day of the first
Interest Period that part of that amount (in the new currency).
	 
	6.4	 	Same Optional Currency during successive Interest Periods
	 
	(a)	 	If a Facility B Loan is to be denominated in the same Optional Currency during two successive
Interest Periods, the Agent shall calculate the amount of the Facility B Loan in the Optional
Currency for the second of those Interest Periods (by calculating the amount of Optional

19

 

	 	 	Currency equal to the Base Currency Amount of that Facility B Loan at the Agent’s Spot Rate
of Exchange at the Specified Time) and (subject to paragraph (b) below):

	 	(i)	 	if the amount calculated is less than the existing amount of that Facility B Loan
in the Optional Currency during the first Interest Period, promptly notify the Borrower
that has borrowed that Facility B Loan and that Borrower shall pay, on the last day of
the first Interest Period, an amount equal to the difference; or
	 
	 	(ii)	 	if the amount calculated is more than the existing amount of that Facility B Loan
in the Optional Currency during the first Interest Period, promptly notify each Lender
and, if no Event of Default is continuing, each Lender shall, on the last day of the
first Interest Period, pay its participation in an amount equal to the difference.

	(b)	 	If the calculation made by the Agent pursuant to paragraph (a) above shows that the amount of
the Facility B Loan in the Optional Currency for the second of those Interest Periods
converted into the Base Currency at the Agent’s Spot Rate of Exchange at the Specified Time
has increased or decreased by less than 5 per cent. compared to its Base Currency Amount
(taking into account any payments made pursuant to paragraph (a) above), no notification shall
be made by the Agent and no payment shall be required under paragraph (a) above.
	 
	6.5	 	Agent’s calculations
	 
	(a)	 	All calculations made by the Agent pursuant to this Clause 6 will take into account any
repayment, prepayment, consolidation or division of Facility B Loans to be made on the last
day of the first Interest Period.
	 
	(b)	 	Each Lender’s participation in a Loan will, subject to paragraph (a) above, be determined in
accordance with paragraph (b) of Clause 5.4 (Lenders’ participation).

20

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	7.	 	REPAYMENT
	 
	7.1	 	Repayment of Facility A Loans
	 
	 	 	Each Borrower which has drawn a Facility A Loan shall repay that Facility A Loan on the last
day of its Interest Period.
	 
	7.2	 	Repayment of Facility B Loans
	 
	(a)	 	Each Borrower which has drawn a Facility B Loan shall repay that Facility B Loan on the
Facility B Repayment Date.
	 
	(b)	 	No Borrower may reborrow any part of Facility B which is repaid.
	 
	8.	 	PREPAYMENT AND CANCELLATION
	 
	8.1	 	Illegality

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

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

	8.2	 	Change of control
	 
	(a)	 	If at any time any person or group of persons acting in concert gains control of the Company:

	 	(i)	 	the Company shall promptly notify the Agent upon becoming aware of that event;
	 
	 	(ii)	 	a Lender shall not be obliged to fund a Utilisation (except for a Rollover Loan);
and
	 
	 	(iii)	 	if a Lender so requires and notifies the Agent within 30 days of the Company
notifying the Agent of the event, the Agent shall, by not less than 30 days’ notice to
the Company, cancel the Commitment of that Lender and declare the participation of that
Lender in all outstanding Loans, together with accrued interest, and all other amounts
accrued under the Finance Documents immediately due and payable, whereupon the
Commitment of that Lender will be cancelled and all such outstanding amounts will become
immediately due and payable.

	(b)	 	For the purpose of paragraph (a) above “control” has the meaning given to it in section 840
of the Taxes Act.
	 
	(c)	 	For the purpose of paragraph (a) above “acting in concert” has the meaning given to it in the
City Code on Takeovers and Mergers.

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	8.3	 	Mandatory prepayment and cancellation of Facility B from Capital Markets Fundraising
	 
	(a)	 	In this Clause 8.3:

	 	 	“External Debt” means Financial Indebtedness of any member of the Group (other than Project
Finance Indebtedness or any refinancing thereof) raised as a result of:

	 	(i)	 	issuing any note, bond or other debt security (whether issued to the public or by
means of private placement); or
	 
	 	(ii)	 	a loan from any person outside the Group under any loan facility with more than
one lender,

	 	 	in each case, with a maturity of more than one year and in an amount per transaction in
excess of $50,000,000 (or its equivalent in other currencies) or in an aggregate amount in a
calendar year in excess of $100,000,000 (or its equivalent in other currencies).
	 
	 	 	“Excluded Proceeds” means the proceeds of any External Debt:

	 	(i)	 	raised for the specific purpose of, and applied towards, the refinancing or
replacement of all or any portion of any External Debt in place prior to the date of
this Agreement; or
	 
	 	(ii)	 	raised or in place prior to the date of this Agreement.

	 	 	“Net Proceeds” means, in relation to External Debt, the cash proceeds received by the Company
or any member of the Group, after deducting:

	 	(i)	 	all fees and transaction costs and expenses properly incurred in connection with:

	 	(A)	 	the raising of that External Debt; or
	 
	 	(B)	 	making the transfer of such amounts to a Borrower as are required
in order to comply with this Clause 8.3; and

	 	(ii)	 	Taxes paid or reasonably estimated by the Company to be payable as a result of
the raising of that External Debt (or making the transfers required to be made to a
Borrower as described in paragraph (i)(B) above).

	(b)	 	Until such time as the Facility B Commitments and any Facility B Loans are repaid and
cancelled in full, the Company shall procure that an amount equal to any Net Proceeds (other
than Excluded Proceeds) is applied on the last day of the relevant Interest Period current
following receipt by the relevant member of the Group of such Net Proceeds or on such earlier
date following receipt as the Company may, at its option, decide, in prepayment of the
outstanding Facility B Loans.
	 
	8.4	 	Voluntary cancellation
	 
	 	 	The Company may, if it gives the Agent not less than 5 Business Days’ (or such shorter period
as the Majority Lenders may agree) prior notice in writing, cancel the whole or any part
(being a minimum amount of $40,000,000 and in multiples of $10,000,000) of an Available
Facility. Any cancellation under this Clause 8.4 shall reduce the Commitments of the Lenders
rateably under that Facility.
	 
	8.5	 	Voluntary prepayment of Facility A Loans
	 
	 	 	A Borrower to which a Facility A Loan has been made, may, if it gives the Agent not less than
5 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice in

22

 

	 	 	writing, prepay the whole or any part of a Facility A Loan (but, if in part, being an amount
that reduces the Base Currency Amount of the Loan by a minimum amount of $40,000,000 and in
multiples of $10,000,000).
	 
	8.6	 	Voluntary prepayment of Facility B Loans
	 
	(a)	 	A Borrower to which a Facility B Loan has been made may, if it gives the Agent not less than
5 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice in
writing, prepay the whole or any part of any Facility B Loan (but, if in part, being an amount
that reduces the Base Currency Amount of the Loan by a minimum amount of $40,000,000 and in
multiples of $10,000,000).
	 
	(b)	 	A Facility B Loan may only be prepaid after the last day of the Availability Period (or, if
earlier, the date on which the applicable Available Facility is zero).
	 
	8.7	 	Right of repayment and cancellation in relation to a single Lender
	 
	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by an Obligor is required to be increased under
paragraph (c) of Clause 13.2 (Tax gross-up);
	 
	 	(ii)	 	any Lender claims indemnification from the Company under Clause 13.3 (Tax
indemnity) or Clause 14.1 (Increased costs); or
	 
	 	(iii)	 	any Lender notifies the Agent of its Additional Cost Rate under paragraph 3 of
Schedule 4 (Mandatory Cost formulae),

	 	 	the Company may, whilst (in the case of paragraphs (i) and (ii) above) the circumstance
giving rise to the requirement or indemnification continues, or (in the case of paragraph
(iii) above) that Additional Cost Rate is greater than zero, give the Agent notice of
cancellation of the Commitment of that Lender and/or its intention to procure the repayment
of that Lender’s participation in the Loans.
	 
	(b)	 	On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender
shall immediately be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after the Company has given notice under
paragraph (a) above (or, if earlier, the date specified by the Company in that notice), each
Borrower (or, as the case may be, the specified Borrower) to which a Loan is outstanding shall
repay that Lender’s participation in that Loan.

	8.8	 	Replacement of a Non-Consenting Lender or Non-Funding Lender
	 
	(a)	 	In this Clause 8.8:

	 	(i)	 	“Non-Consenting Lender” means any Lender which does not agree to a consent,
waiver or amendment if:

	 	(A)	 	the Company or the Agent has requested a consent under or waiver
or amendment of any provision of any Finance Document;
	 
	 	(B)	 	that consent, waiver or amendment requires the agreement of all
the Lenders; and
	 
	 	(C)	 	the Super-Majority Lenders have agreed to that consent, waiver or
amendment.

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	 	(ii)	 	“Non-Funding Lender” means:

	 	(A)	 	any Lender which has failed to make or participate in any
Utilisation as required by this Agreement; or
	 
	 	(B)	 	any Lender which has given notice to a Borrower or the Agent that
it does not intend to make or participate in any Utilisation as required by this
Agreement or has repudiated its obligation to do so.

	(b)	 	If:

	 	(i)	 	any Lender becomes a Non-Consenting Lender; or
	 
	 	(ii)	 	any Lender becomes a Non-Funding Lender,

	 	 	the Company may, if it gives the Agent and that Lender not less than 10 Business Days’ prior
notice, arrange for the transfer of the whole (but not part only) of that Lender’s Commitment
and participations in the Utilisations at par to a new or existing Lender willing to accept
that transfer and acceptable to the Company and the remaining Lenders.
	 
	(c)	 	The replacement of a Lender pursuant to this Clause 8.8 shall be subject to the following
conditions:

	 	(i)	 	no Finance Party shall have any obligation to find a replacement Lender;
	 
	 	(ii)	 	any replacement of a Non-Consenting Lender must take place no later than 180 days
after the earlier of (A) the date the Non-Consenting Lender notified the Agent of its
refusal to agree to the relevant consent, waiver or amendment and (B) the deadline
(being not less than 10 Business Days after the Lender received the request for the
relevant consent, waiver or amendment) by which the Non-Consenting Lender failed to
reply to that request;
	 
	 	(iii)	 	any Lender replaced pursuant to this Clause 8.8 shall not be required to refund,
or to pay or surrender to any other Lender, any of the fees or other amounts received by
that Lender under any Finance Document; and
	 
	 	(iv)	 	any replacement pursuant to this Clause 8.8 of a Lender which is the Agent shall
not affect its role as the Agent.

	8.9	 	Restrictions
	 
	(a)	 	Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be
irrevocable and, unless a contrary indication appears in this Agreement, shall specify the
date or dates upon which the relevant cancellation or prepayment is to be made and the amount
of that cancellation or prepayment.
	 
	(b)	 	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	(c)	 	Unless a contrary indication appears in this Agreement, any part of Facility A which is
prepaid may be reborrowed in accordance with the terms of this Agreement.
	 
	(d)	 	No Borrower may reborrow any part of Facility B which is prepaid.

24

 

	(e)	 	The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any
part of the Commitments except at the times and in the manner expressly provided for in this
Agreement.
	 
	(f)	 	No amount of the Total Commitments cancelled under this Agreement may be subsequently
reinstated.
	 
	(g)	 	If the Agent receives a notice under this Clause 8 it shall promptly forward a copy of that
notice to either the Company or the affected Lender, as appropriate.

25

 

SECTION 5

COSTS OF UTILISATION

	9.	 	INTEREST
	 
	9.1	 	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;
	 
	 	(b)	 	LIBOR or, in relation to any Loan in euro, EURIBOR; and
	 
	 	(c)	 	Mandatory Cost, if any.

	9.2	 	Payment of interest
	 
	 	 	The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the
last day of each Interest Period (and, if the Interest Period is longer than six Months, on
the dates falling at six monthly intervals after the first day of the Interest Period).
	 
	9.3	 	Default interest
	 
	(a)	 	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date,
interest shall accrue on the overdue amount from the due date up to the date of actual payment
(both before and after judgment) at a rate which, subject to paragraph (b) below, is the sum
of 1 per cent. and the rate which would have been payable if the overdue amount had, during
the period of non-payment, constituted a Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any
interest accruing under this Clause 9.3 shall be immediately payable by the Obligor on demand
by the Agent.
	 
	(b)	 	If any overdue amount consists of all or part of a Loan which became due on a day which was
not the last day of an Interest Period relating to that Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a duration equal to
the unexpired portion of the current Interest Period relating to that Loan; and
	 
	 	(ii)	 	the rate of interest applying to the overdue amount during that first Interest
Period shall be the sum of 1 per cent. and 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.
	 
	9.4	 	Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the Lenders and the relevant Borrower of the determination of
a rate of interest under this Agreement.

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	10.	 	INTEREST PERIODS
	 
	10.1	 	Selection of Interest Periods
	 
	(a)	 	A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan
in the Utilisation Request for that Loan or (if the Loan has already been borrowed) in a
Selection Notice.
	 
	(b)	 	Each Selection Notice for a Facility B Loan is irrevocable and must be delivered to the Agent
by the Borrower (or the Company on behalf of the Borrower) to which that Facility B Loan was
made not later than the Specified Time.
	 
	(c)	 	If a Borrower (or the Company) fails to deliver a Selection Notice to the Agent in accordance
with paragraph (b) above, the relevant Interest Period will be one Month.
	 
	(d)	 	Subject to this Clause 10, a Borrower (or the Company) may select an Interest Period of 1, 2,
3 or 6 Months or any other period agreed between the Company and the Agent (acting on the
instructions of all the Lenders).
	 
	(e)	 	An Interest Period for a Loan shall not extend beyond the Termination Date applicable to its
Facility.
	 
	(f)	 	A Facility A Loan has one Interest Period only.
	 
	(g)	 	Each Interest Period for a Facility B Loan shall start on the Utilisation Date or (if already
made) on the last day of its preceding Interest Period.
	 
	10.2	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if there is one) or
the preceding Business Day (if there is not).
	 
	10.3	 	Consolidation and division of Facility B Loans
	 
	(a)	 	Subject to paragraph (b) below, if two or more Interest Periods:

	 	(i)	 	relate to Facility B Loans in the same currency;
	 
	 	(ii)	 	end on the same date; and
	 
	 	(iii)	 	are made to the same Borrower,

	 	 	those Facility B Loans will, unless that Borrower (or the Company on its behalf) specifies to
the contrary in the Selection Notice for the next Interest Period, be consolidated into, and
treated as, a single Facility B Loan on the last day of the Interest Period.
	 
	(b)	 	Subject to Clause 4.4 (Maximum number of Loans) and Clause 5.3 (Currency and amount), if a
Borrower (or the Company on its behalf) requests in a Selection Notice that a Facility B Loan
be divided into two or more Facility B Loans that Facility B Loan will, on the last day of its
Interest Period, be so divided with Base Currency Amounts specified in that Selection Notice,
being an aggregate Base Currency Amount equal to the Base Currency Amount of the Facility B
Loan immediately before its division.

27

 

	11.	 	CHANGES TO THE CALCULATION OF INTEREST
	 
	11.1	 	Absence of quotations
	 
	 	 	Subject to Clause 11.2 (Market disruption), if LIBOR or, if applicable, EURIBOR is to be
determined by reference to the Reference Banks but a Reference Bank does not supply a
quotation by the Specified Time on the Quotation Day, the applicable LIBOR or EURIBOR shall
be determined on the basis of the quotations of the remaining Reference Banks.
	 
	11.2	 	Market disruption
	 
	(a)	 	If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the
rate of interest on each Lender’s share of that Loan for the Interest Period shall be the rate
per annum which is the sum of:

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

	(b)	 	In this Agreement “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest Period the Screen
Rate is not available and none or only one of the Reference Banks supplies a rate to the
Agent to determine LIBOR or, EURIBOR for the relevant currency and Interest Period; or
	 
	 	(ii)	 	before close of business in London on the Quotation Day for the relevant Interest
Period, the Agent receives notifications from a Lender or Lenders (whose participations
in a Loan exceed 35 per cent. of that Loan) that the cost to it of obtaining matching
deposits in the Relevant Interbank Market would be in excess of LIBOR or, if applicable,
EURIBOR.

	11.3	 	Alternative basis of interest or funding

	(a)	 	If a Market Disruption Event occurs and the Agent or the Company so requires, the Agent and
the Company shall enter into negotiations (for a period of not more than thirty days) with a
view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of
all the Lenders and the Company, be binding on all Parties.
	 
	11.4	 	Break Costs
	 
	(a)	 	Each Borrower shall, within five Business Days of a demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being
paid by that Borrower on a day other than the last day of an Interest Period for that Loan or
Unpaid Sum.
	 
	(b)	 	Each Lender shall, together with its demand provide a certificate confirming the amount and
basis of calculation of its Break Costs for any Interest Period in which they accrue.

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	12.	 	FEES
	 
	12.1	 	Facility A Commitment fee
	 
	(a)	 	The Company shall pay to the Agent (for the account of each Lender) a fee in the Base
Currency computed on a day to day basis at a percentage rate per annum equal to 35 per cent.
of the relevant Margin which would apply to a Facility A Loan drawn on that day on that
Lender’s Available Commitment under Facility A for the Availability Period applicable to
Facility A.
	 
	(b)	 	The accrued commitment fee is payable in relation to Facility A, on the last day of each
successive period of three Months which ends during the Availability Period applicable to
Facility A, on the last day of the Availability Period applicable to Facility A and, if
cancelled in full, on the cancelled amount of the relevant Lender’s Available Commitment at
the time the cancellation is effective.
	 
	12.2	 	MLA fee
	 
	 	 	The Company shall pay, or procure that the same is paid, to the Arranger (for its own
account) a fee in the amount and at the times agreed in a Fee Letter.
	 
	12.3	 	Participation fee
	 
	 	 	The Company shall pay, or shall procure that the same is paid, to the Agent (for the account
of each Lender) a fee in the amount and at the times agreed in a Fee Letter.
	 
	12.4	 	Agency fee
	 
	 	 	The Company shall pay, or procure that the same is paid, to the Agent (for its own account)
an agency fee in the amount and at the times agreed in a Fee Letter.

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SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	13.	 	TAX GROSS-UP AND INDEMNITIES
	 
	13.1	 	Definitions
	 
	(a)	 	In this Agreement:
	 
	 	 	“Protected Party” means a Finance Party which is or will be subject to any liability, or
required to make any payment, for or on account of Tax in relation to a sum received or
receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a
Finance Document.
	 
	 	 	“Qualifying Lender” means:

	 	(i)	 	a Lender (other than a Lender within sub-paragraph (ii) below) which is
beneficially entitled to interest payable to that Lender in respect of an advance under
a Finance Document and is:

	 	(A)	 	a Lender:

	 	1.	 	which is a bank (as defined for the purpose of
section 879 of the Income Tax Act) making an advance under a Finance
Document; or
	 
	 	2.	 	in respect of an advance made under a Finance
Document by a person that was a bank (as defined for the purpose of
section 879 of the Income Tax Act) at the time that that advance was
made,

	 	 	 	and which is within the charge to United Kingdom corporation tax as respects
any payments of interest made in respect of that advance; or

	 	(B)	 	a Lender which is:

	 	1.	 	a company resident in the United Kingdom for United
Kingdom tax purposes;
	 
	 	2.	 	a partnership each member of which is:

	 	(a)	 	a company so resident in the United
Kingdom; or
	 
	 	(b)	 	a company not so resident in the
United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in
computing its chargeable profits (for the purposes of section
11(2) of the Taxes Act) the whole of any share of interest payable
in respect of that advance that falls to it by reason of sections
114 and 115 of the Taxes Act; or

	 	3.	 	a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect
of that advance in computing the chargeable profits (for the purposes of
section 11(2) of the Taxes Act) of that company; or

	 	(C)	 	a Treaty Lender; or

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	 	(ii)	 	a building society (as defined for the purposes of section 880 of the Income Tax
Act) making an advance under a Finance Document.

	 	 	“Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to
interest payable to that Lender in respect of an advance under a Finance Document is either:

	 	(i)	 	a company resident in the United Kingdom for United Kingdom tax purposes; or
	 
	 	(ii)	 	a partnership each member of which is:

	 	(A)	 	a company so resident in the United Kingdom; or
	 
	 	(B)	 	a company not so resident in the United Kingdom which carries on
a trade in the United Kingdom through a permanent establishment and which brings
into account in computing its chargeable profits (for the purposes of section
11(2) of the Taxes Act) the whole of any share of interest payable in respect of
that advance that falls to it by reason of sections 114 and 115 of the Taxes
Act; or

	 	(iii)	 	a company not so resident in the United Kingdom which carries on a trade in the
United Kingdom through a permanent establishment and which brings into account interest
payable in respect of that advance in computing the chargeable profits (for the purposes
of section 11(2) of the Taxes Act) of that company.

	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment
under a Finance Document.
	 
	 	 	“Tax Payment” means the amount by which a payment made by an Obligor to a Finance Party is
increased under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity).
	 
	 	 	“Treaty Lender” means a Lender which:

	 	(i)	 	is treated as a resident of a Treaty State for the purposes of the Treaty;
	 
	 	(ii)	 	does not carry on a business in the United Kingdom through a permanent
establishment with which that Lender’s participation in the Loans is effectively
connected; and
	 
	 	(iii)	 	fulfils any conditions which must be fulfilled under the double taxation
agreement for residents of that Treaty State to obtain exemption from United Kingdom
taxation on interest (subject to the completion of any necessary procedural
formalities).

	 	 	“Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the
United Kingdom which makes provision for full exemption from tax imposed by the United
Kingdom on interest.
	 
	 	 	“UK Non-Bank Lender” means where a Lender becomes a Party after the day on which this
Agreement is entered into, a Lender which gives a Tax Confirmation in the Transfer
Certificate which it executes on becoming a Party.
	 
	(b)	 	Unless a contrary indication appears, in this Clause 13 a reference to “determines” or
“determined” means a determination made in the absolute discretion of the person making the
determination.

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

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

	 	(A)	 	the relevant Lender is a Qualifying Lender solely under
sub-paragraph (i)(B) of the definition of Qualifying Lender;
	 
	 	(B)	 	an officer of HM Revenue & Customs has given (and not revoked) a
direction (a “Direction”) under section 931 of the Income Tax Act (as that
provision has effect on the date on which the relevant Lender became a Party)
which relates to that payment and that Lender has received from that Obligor or
the Company a certified copy of that Direction; and
	 
	 	(C)	 	the payment could have been made to the Lender without any Tax
Deduction in the absence of that Direction; or

	 	(iii)	 	the relevant Lender is a Qualifying Lender solely under sub-paragraph (i)(B) of
the definition of Qualifying Lender and it has not, other than by reason of any change
after the date of this Agreement in (or in the interpretation, administration or
application of) any law, or any published practice or concession of any relevant taxing
authority, given a Tax Confirmation to the Company;
	 
	 	(iv)	 	the relevant Lender is a Treaty Lender and the Obligor making the payment is able
to demonstrate that the payment could have been made to the Lender without the Tax
Deduction had that Lender complied with its obligations under paragraph (g) below; or
	 
	 	(v)	 	the Tax Deduction is required as a result of a direction under regulation 9(b) of
SI 1970/488 and the application of regulation 9(b) to that Lender does not result from a

32

 

	 	 	 	change after it became a Lender in (or the interpretation, administration or
application of) any law or Treaty, or any published practice or concession of any
relevant taxing authority.

	(e)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction
and any payment required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law.
	 
	(f)	 	Within thirty days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for
the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing authority.
	 
	(g)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate in promptly completing any procedural formalities (including
completing and submitting appropriate documents to the applicable taxation authorities)
necessary for that Obligor to obtain authorisation to make that payment without a Tax
Deduction.
	 
	(h)	 	A UK Non-Bank Lender shall promptly notify the Company and the Agent if there is any change
in the position from that set out in the Tax Confirmation.
	 
	(i)	 	Each Lender severally warrants to the Company that it is a Qualifying Lender on the date it
becomes a Party to this Agreement. If at any time after this Agreement is entered into any
Lender becomes aware that it is not and will not or will cease to be a Qualifying Lender, it
shall promptly notify the Agent and the Company.
	 
	13.3	 	Tax indemnity
	 
	(a)	 	The Borrowers shall (within five Business Days of demand by the Agent) pay to a Protected
Party an amount equal to the loss, liability or cost which that Protected Party determines 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 a Finance Party:

	 	(A)	 	under the law of the jurisdiction in which that Finance Party is
incorporated or, if different, the jurisdiction (or jurisdictions) in which that
Finance Party is treated as resident for tax purposes; or
	 
	 	(B)	 	under the law of the jurisdiction in which that Finance Party’s
Facility Office is located in respect of amounts received or receivable in that
jurisdiction,

	 	 	 	if that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that Finance
Party;

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

	 	(A)	 	is compensated for by an increased payment under Clause 13.2 (Tax
gross-up); or

33

 

	 	(B)	 	would have been compensated for by an increased payment under
Clause 13.2 (Tax gross-up) but was not so compensated solely because one of the
exclusions in paragraph (d) of Clause 13.2 (Tax gross-up) applied; or

	 	(iii)	 	to the extent that such loss, liability or cost has not been notified to the
Company by the relevant Finance Party within 2 months of such Finance Party becoming
aware of the existence of the same.

	(c)	 	A Protected Party making, or intending to make, a claim under paragraph (a) above shall
promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall promptly notify the Company.
	 
	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3,
notify the Agent.
	 
	13.4	 	Tax Credit
	 
	 	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that Tax
Payment forms part or to that Tax Payment; and
	 
	 	(b)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

	 	 	the Finance Party shall pay an amount to the Obligor which that Finance Party determines will
leave it (after that payment) in no better and no worse position in respect of its worldwide
tax liabilities than it would have been in had the Tax Payment not been required to be made
by the Obligor.
	 
	13.5	 	Stamp taxes
	 
	 	 	The Borrowers shall pay and, within five Business Days of demand, indemnify each Finance
Party against any cost, loss or liability that Finance Party incurs in relation to all stamp
duty, registration and other similar Taxes payable in respect of any Finance Document.
	 
	13.6	 	Value added tax
	 
	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any Party to a
Finance Party which (in whole or part) constitute the consideration for VAT purposes shall be
deemed to be exclusive of any VAT which is chargeable on such supply, and accordingly, subject
to paragraph (c) below, if VAT is chargeable on any supply made by any Finance Party to any
Party under a Finance Document, that Party shall pay to the Finance Party (in addition to and
at the same time as paying the consideration) an amount equal to the amount of the VAT (and
such Finance Party shall promptly provide an appropriate VAT invoice to such Party).
	 
	(b)	 	If VAT is chargeable on any supply made by any Finance Party (the “Supplier”) to any other
Finance Party (the “Recipient”) under a Finance Document, and any Party (the “Relevant Party”)
is required by the terms of any Finance Document to pay an amount equal to the consideration
for such supply to the Supplier (rather than being required to reimburse the Recipient in
respect of that consideration), such Party shall also pay to the Supplier (in addition to and
at the same time as paying such amount) an amount equal to the amount of such VAT. The
Recipient will promptly pay to the Relevant Party an amount equal to any credit or

34

 

	 	 	repayment from the relevant tax authority which it reasonably determines relates to the VAT
chargeable on that supply.
	 
	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or
expenses, that Party shall also at the same time pay and indemnify the Finance Party against
all VAT incurred by the Finance Party in respect of the costs or expenses save to the extent
that neither the Finance Party nor any other member of any group of which it is a member for
VAT purposes is entitled to repayment or credit in respect of such VAT.
	 
	13.7	 	PTR Scheme
	 
	(a)	 	Each Lender:

	 	(i)	 	irrevocably appoints Six Continents Limited (“SCL”) (insofar as it is permitted
to act as a syndicate manager by HM Revenue & Customs) to act as syndicate manager
under, and authorises SCL to operate, and take any action necessary or desirable under,
the PTR Scheme in connection with the Facilities;
	 
	 	(ii)	 	shall co-operate with SCL in completing any procedural formalities necessary
under the PTR Scheme, and shall promptly supply to SCL such information as SCL may
request in connection with the operation of the PTR Scheme;
	 
	 	(iii)	 	without limiting the liability of any Borrower under this Agreement, shall,
within 5 Business Days of demand, indemnify SCL for any liability or loss incurred by
SCL as a result of SCL acting as syndicate manager under the PTR Scheme in connection
with the Lender’s participation in any Loan (except to the extent that the liability or
loss arises directly from SCL’s gross negligence or wilful misconduct); and
	 
	 	(iv)	 	shall, within 5 Business Days of demand, indemnify each Borrower for any Tax
which such Borrower becomes liable to pay in respect of any payments made to such Lender
arising as a result of any incorrect information supplied by such Lender under paragraph
(ii) above which results in a provisional authority issued by HM Revenue & Customs under
the PTR Scheme being withdrawn.

	(b)	 	Each Borrower acknowledges that it is fully aware of its contingent obligations under the PTR
Scheme and shall:

	 	(i)	 	promptly supply to SCL such information as SCL may request in connection with the
operation of the PTR Scheme, save that SCL shall have no such obligation to the extent
it is a Borrower; and
	 
	 	(ii)	 	act in accordance with any provisional notice issued by HM Revenue & Customs
under the PTR Scheme.

	(c)	 	If SCL is not permitted by HM Revenue & Customs to act as syndicate manager under and/or
operate the PTR Scheme in accordance with paragraph (a) above:

	 	(i)	 	each Lender irrevocably appoints the Agent to act as syndicate manager and to
operate the PTR Scheme and paragraphs (a) and (b) above shall apply to the Agent and
shall be construed as if references in those paragraphs to “SCL” were references to “the
Agent”; and

35

 

	 	(ii)	 	the Agent agrees to provide, as soon as reasonably practicable, a copy of any
provisional authority issued to it under the PTR Scheme in connection with any Loan to
those Borrowers specified in such provisional authority.

	(d)	 	All Parties acknowledge that each of SCL and the Agent:

	 	(i)	 	is entitled to rely completely upon information provided to it in connection with
paragraphs (a) or (b) above;
	 
	 	(ii)	 	is not obliged to undertake any enquiry into the accuracy of such information,
nor into the status of the Lender or, as the case may be, Borrower providing such
information; and
	 
	 	(iii)	 	shall have no liability to any person for the accuracy of any information it
submits in connection with paragraph (a)(i) above.

	(e)	 	All Parties agree to the appointment of SCL as syndicate manager for the purposes of the PTR
Scheme.
	 
	(f)	 	In this Clause “PTR Scheme” means the Provisional Treaty Relief scheme as described in HM
Revenue & Customs (formerly the Inland Revenue) Guidelines dated January 2003 and administered
by HM Revenue & Customs.
	 
	14.	 	INCREASED COSTS
	 
	14.1	 	Increased costs
	 
	(a)	 	Subject to Clause 14.3 (Exceptions) the Company shall, within five Business Days of a demand
by the Agent, pay for the account of a Finance Party the amount of any Increased Costs
incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of
or any change in (or in the interpretation, administration or application of) any law or
regulation or (ii) compliance with any law or regulation made after the date of this
Agreement.
	 
	(b)	 	In this Agreement “Increased Costs” means:

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

	 	 	which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that
it is attributable to that Finance Party having entered into its Commitment or funding or
performing its obligations under any Finance Document.
	 
	14.2	 	Increased cost claims
	 
	(a)	 	A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall
notify the Agent of the event giving rise to the claim, following which the Agent shall
promptly notify the Company.
	 
	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount and reasonable details of the calculation of its Increased
Costs.
	 
	14.3	 	Exceptions
	 
	(a)	 	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is:

36

 

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(ii)	 	compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated
for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of
the exclusions in paragraph (b) of Clause 13.3 (Tax indemnity) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost;
	 
	 	(iv)	 	attributable to the negligence or wilful breach by the relevant Finance Party or
its Affiliates of any law or regulation; or
	 
	 	(v)	 	attributable to the implementation or application of or compliance with the
“International Convergence of Capital Measurement and Capital Standards, a Revised
Framework” published by the Basel Committee on Banking Supervision in June 2004 in the
form existing on the date of this Agreement (“Basel II”) or any other law or regulation
which implements Basel II (whether such implementation, application or compliance is by
a government, regulator, Finance Party or any of its Affiliates).

	(b)	 	In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning given to the term
in Clause 13.1 (Definitions).
	 
	15.	 	OTHER INDEMNITIES
	 
	15.1	 	Currency indemnity
	 
	(a)	 	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment
or award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor;
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any litigation
or arbitration proceedings,

	 	 	that Obligor shall as an independent obligation, within five Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or liability
arising out of or as a result of the conversion including any discrepancy between (A) the
rate of exchange used to convert that Sum from the First Currency into the Second Currency
and (B) the rate or rates of exchange available to that person at the time of its receipt of
that Sum.
	 
	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.
	 
	15.2	 	Other indemnities
	 
	 	 	The Company shall (or shall procure that an Obligor will), within five Business Days of
demand, indemnify each Finance Party against any cost, loss or liability incurred by that
Finance Party as a result of:

	 	(a)	 	the occurrence of any Event of Default;

37

 

	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on its due
date, including without limitation, any cost, loss or liability arising as a result of
Clause 28 (Sharing among the Finance Parties);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in a Loan requested by
a Borrower in a Utilisation Request but not made by reason of the operation of any one
or more of the provisions of this Agreement (other than by reason of default or
negligence by that Finance Party alone); or
	 
	 	(d)	 	a Loan (or part of a Loan) not being prepaid in accordance with a notice of
prepayment given by a Borrower or the Company.

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

	 	(a)	 	investigating any event which it reasonably believes is an Event of Default; or
	 
	 	(b)	 	entering into or performing any foreign exchange contract for the purpose of
paragraph (b) of Clause 6.3 (Change of currency); or
	 
	 	(c)	 	acting or relying on any notice, request or instruction made by an Obligor which
it reasonably believes to be genuine, correct and appropriately authorised.

	16.	 	MITIGATION BY THE LENDERS
	 
	16.1	 	Mitigation
	 
	(a)	 	Each Finance Party shall, in consultation with the Company, 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 8.1 (Illegality), Clause 13 (Tax
gross-up and indemnities), Clause 14 (Increased costs) or paragraph 3 of Schedule 4 (Mandatory
Cost formulae) including (but not limited to) transferring its rights and obligations under
the Finance Documents to another Affiliate or Facility Office.
	 
	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor under the
Finance Documents.
	 
	16.2	 	Limitation of liability
	 
	(a)	 	The Company shall indemnify each Finance Party for all costs and expenses reasonably incurred
by that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation).
	 
	(b)	 	A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the
opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.
	 
	17.	 	COSTS AND EXPENSES
	 
	17.1	 	Transaction expenses
	 
	 	 	The Company shall promptly on demand pay the Agent and the Arranger the amount of all
reasonable costs and expenses (including legal fees) reasonably incurred by any of them
(subject to a maximum in respect of legal fees as agreed with the Company) in connection with
the negotiation, preparation, printing and execution of:

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

	17.2	 	Amendment costs
	 
	 	 	If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required
pursuant to Clause 29.9 (Change of currency), the Company shall, within five Business Days of
demand, reimburse the Agent for the amount of all reasonable costs and expenses (including
legal fees) reasonably incurred by the Agent in evaluating, negotiating or complying with
that request.
	 
	17.3	 	Enforcement costs
	 
	 	 	The Company shall, within five Business Days of demand, pay to each Finance Party the amount
of all costs and expenses (including legal fees) incurred by that Finance Party in connection
with the enforcement of, or the preservation of any rights under, any Finance Document.

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SECTION 7

GUARANTEE

	18.	 	GUARANTEE AND INDEMNITY
	 
	18.1	 	Guarantee and indemnity
	 
	 	 	Each Guarantor irrevocably and unconditionally jointly and severally:

	 	(a)	 	guarantees to each Finance Party punctual performance by each Borrower of all
that Borrower’s payment obligations under the Finance Documents;
	 
	 	(b)	 	undertakes with each Finance Party that whenever a Borrower does not pay any
amount when due under or in connection with any Finance Document, that Guarantor shall
immediately on demand pay that amount as if it was the principal obligor; and
	 
	 	(c)	 	indemnifies each Finance Party immediately on demand against any cost, loss or
liability suffered by that Finance Party if any payment obligation guaranteed by it is
or becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability
shall be equal to the amount which that Finance Party would otherwise have been entitled
to recover.

	18.2	 	Continuing guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor under the Finance Documents, regardless of any intermediate payment or
discharge in whole or in part.
	 
	18.3	 	Reinstatement
	 
	 	 	If any payment by an Obligor or any discharge given by a Finance Party (whether in respect of
the obligations of any Obligor or any security for those obligations or otherwise) is avoided
or reduced as a result of insolvency or any similar event:

	 	(a)	 	the liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and
	 
	 	(b)	 	each Finance Party shall be entitled to recover the value or amount of that
security or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

	18.4	 	Waiver of defences
	 
	 	 	The obligations of each Guarantor under this Clause 18 will not be affected by an act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice any
of its obligations under this Clause 18 (without limitation and whether or not known to it or
any Finance Party) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or other
person;
	 
	 	(b)	 	the release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or security over assets of,
any Obligor

40

 

	 	 	 	or other person or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full value of
any security;
	 
	 	(d)	 	any incapacity or lack of power, authority or legal personality of or dissolution
or change in the members or status of an Obligor or any other person;
	 
	 	(e)	 	any amendment (however fundamental) or replacement of a Finance Document or any
other document or security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	18.5	 	Immediate recourse
	 
	 	 	Each Guarantor waives any right it may have of first requiring any Finance Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights or security or
claim payment from any person before claiming from that Guarantor under this Clause 18. This
waiver applies irrespective of any law or any provision of a Finance Document to the
contrary.
	 
	18.6	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full, while a Default is continuing, each
Finance Party (or any trustee or agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held or
received by that Finance Party (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and
	 
	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this Clause 18.

	18.7	 	Deferral of Guarantors’ rights
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection with
the Finance Documents have been irrevocably paid in full and unless the Agent otherwise
directs, no Guarantor will exercise any rights which it may have by reason of performance by
it of its obligations under the Finance Documents:

	 	(a)	 	to be indemnified by an Obligor;
	 
	 	(b)	 	to claim any contribution from any other guarantor of any Obligor’s obligations
under the Finance Documents; and/or
	 
	 	(c)	 	to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights of the Finance Parties under the Finance Documents or of any
other guarantee or security taken pursuant to, or in connection with, the Finance
Documents by any Finance Party.

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	18.8	 	Release of Guarantors’ right of contribution
	 
	 	 	If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the
terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring
Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

	 	(a)	 	that Retiring Guarantor is released by each other Guarantor from any liability
(whether past, present or future and whether actual or contingent) to make a
contribution to any other Guarantor arising by reason of the performance by any other
Guarantor of its obligations under the Finance Documents; and
	 
	 	(b)	 	each other Guarantor waives any rights it may have by reason of the performance
of its obligations under the Finance Documents to take the benefit (in whole or in part
and whether by way of subrogation or otherwise) of any rights of the Finance Parties
under any Finance Document or of any other security taken pursuant to, or in connection
with, any Finance Document where such rights or security are granted by or in relation
to the assets of the Retiring Guarantor.

	18.9	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by any Finance Party.

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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	19.	 	REPRESENTATIONS
	 
	 	 	Each Obligor makes the representations and warranties set out in this Clause 19 to each
Finance Party, on the date of this Agreement.
	 
	19.1	 	Status
	 
	(a)	 	It is a corporation, duly incorporated and validly existing under the law of its jurisdiction
of incorporation.
	 
	(b)	 	It and each of its Material Subsidiaries has the power to own its assets and carry on its
business as it is being conducted.
	 
	19.2	 	Binding 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) or Clause 25
(Changes to the Obligors) legal, valid, binding and enforceable obligations.
	 
	19.3	 	Non-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;
	 
	 	(b)	 	its 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 breach of which would have a Material Adverse
Effect.

	19.4	 	Power 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.
	 
	19.5	 	Validity 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 (or, in each case, will be
when required).

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

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	(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 has or could reasonably be expected to have
a Material Adverse Effect.
	 
	19.7	 	Financial statements
	 
	(a)	 	The Original Financial Statements were prepared in accordance with IFRS consistently applied.
	 
	(b)	 	The Original Financial Statements fairly represent the consolidated financial condition and
operations of the Group during the relevant financial period.
	 
	(c)	 	There has been no material adverse change in the business or financial condition of the Group
since 31 December 2007.
	 
	19.8	 	Pari 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.
	 
	19.9	 	No proceedings pending or threatened
	 
	 	 	No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency which are reasonably likely to be adversely determined and, if adversely
determined, could be reasonably likely to have a Material Adverse Effect have (to the best of
its knowledge and belief) been started or threatened against it or any of its Subsidiaries.
	 
	19.10	 	No misleading information
	 
	(a)	 	Any written factual information provided by or on behalf of any member of the Group for the
purposes of the entry into of this Agreement by a Finance Party, 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.
	 
	(b)	 	Nothing has occurred since the date of delivery of, or been omitted from, the factual
information referred to in paragraph (a) above and no information has been given or withheld
that results in the information referred to in paragraph (a) being untrue or misleading in any
material respect.
	 
	(c)	 	The representations and warranties in this Clause 19.10 are made by the Company only.
	 
	19.11	 	Repetition
	 
	 	 	The Repeating Representations are deemed to be made by each Obligor by reference to the facts
and circumstances then existing on:

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

	20.	 	INFORMATION UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 20 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.
	 
	20.1	 	Financial statements
	 
	 	 	The Company shall supply to the Agent in sufficient copies for all the Lenders:

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	 	(a)	 	as soon as the same become available, but in any event within 120 days after the
end of each of its financial years:

	 	(i)	 	its audited consolidated financial statements for that financial
year; and
	 
	 	(ii)	 	the financial statements of each Obligor for that financial year
(which shall be audited if that Obligor produces audited financial statements);
and

	 	(b)	 	as soon as the same become available, but in any event within 90 days after the
end of the first half of each of its financial years, its consolidated financial
statements for that financial half year.

	20.2	 	Compliance Certificate
	 
	(a)	 	The Company shall supply to the Agent, with each set of financial statements delivered
pursuant to paragraph (a)(i) or (b) of Clause 20.1 (Financial statements), a Compliance
Certificate setting out:

	 	(i)	 	(in reasonable detail) computations as to compliance with Clause 21 (Financial
covenants); and
	 
	 	(ii)	 	an updated list of Material Subsidiaries,

	 	 	in each case, as at the date at which those financial statements were drawn up.

	(b)	 	Each Compliance Certificate shall be signed by a director or an authorised signatory on
behalf of the Company.
	 
	20.3	 	Margin Certificate
	 
	(a)	 	The Company shall supply to the Agent a Margin Certificate within 80 days of each Quarter
Date setting out a computation of the Margin Ratio.
	 
	(b)	 	Each Margin Certificate shall be signed by a director on behalf of the Company.
	 
	20.4	 	Requirements as to financial statements
	 
	(a)	 	Each set of financial statements delivered by the Company pursuant to paragraph (a) of Clause
20.1 (Financial statements) shall be certified by an authorised signatory on behalf of the
relevant company as fairly representing its (or, as the case may be, its consolidated)
financial condition and operations as at the end of and for the period in relation to which
those financial statements were drawn up.
	 
	(b)	 	The Company shall procure that each set of financial statements of the Group delivered
pursuant to Clause 20.1 (Financial statements) is prepared using IFRS and it shall deliver to
the Agent:

	 	(i)	 	sufficient information, in form and substance as may be reasonably required by
the Agent, to enable the Lenders to determine whether Clause 21 (Financial covenants)
has been complied with and make an accurate comparison between the financial position
indicated in those financial statements and the Original Financial Statements; and
	 
	 	(ii)	 	a description of any change necessary for those financial statements to reflect
the Applicable Accounting Principles upon which the Original Financial Statements were
prepared.

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	(c)	 	Any reference in this Agreement to the financial statements of the Group delivered pursuant
to Clause 20.1 (Financial statements) shall be construed as a reference to those financial
statements as adjusted to reflect the Applicable Accounting Principles.
	 
	20.5	 	Information: miscellaneous
	 
	 	 	The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent
so requests):

	 	(a)	 	all documents dispatched by the Company to its shareholders (or any class of
them) or its creditors generally at the same time as 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 any
member of the Group, and which might, if adversely determined, have a Material Adverse
Effect; and
	 
	 	(c)	 	promptly, such further information regarding the financial condition, business
and operations of any member of the Group as any Finance Party (through the Agent) may
reasonably request except to the extent that disclosure of the information would breach
any law regulation, stock exchange requirement or duty of confidentiality.

	20.6	 	Notification of default
	 
	(a)	 	Each Obligor shall notify the Agent of any Default and the steps, if any, being taken to
remedy it promptly upon becoming aware of its occurrence (unless that Obligor is aware that a
notification has already been provided by another Obligor).
	 
	(b)	 	Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate
signed by a director or authorised signatory on its behalf certifying that no Default is
continuing (or if continuing, specifying the steps, if any, being taken to remedy it).
	 
	20.7	 	Use of websites
	 
	(a)	 	The Company may satisfy its obligation under this Agreement to deliver any information in
relation to those Lenders (the “Website Lenders”) who accept this method of communication by
posting this information onto an electronic website designated by the Company and the Agent
(the “Designated Website”) if:

	 	(i)	 	the Agent expressly agrees (after consultation with each of the Lenders) that it
will accept communication of the information by this method;
	 
	 	(ii)	 	the Company and the Agent are aware of the address of and any relevant password
specifications for the Designated Website; and
	 
	 	(iii)	 	the information is in a format previously agreed between the Company and the
Agent.

	 	 	If any Lender (a “Paper Form Lender”) does not agree to the delivery of information
electronically then the Agent shall notify the Company accordingly and the Company shall
supply the information to the Agent (in sufficient copies for each Paper Form Lender) in
paper form. In any event the Company shall supply the Agent with at least one copy in paper
form of any information required to be provided by it.

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	(b)	 	The Agent shall supply each Website Lender with the address of and any relevant password
specifications for the Designated Website following designation of that website by the Company
and the Agent.
	 
	(c)	 	The Company shall promptly upon becoming aware of its occurrence notify the Agent if:

	 	(i)	 	the Designated Website cannot be accessed due to technical failure;
	 
	 	(ii)	 	the password specifications for the Designated Website change;
	 
	 	(iii)	 	any new information which is required to be provided under this Agreement is
posted onto the Designated Website;
	 
	 	(iv)	 	any existing information which has been provided under this Agreement and posted
onto the Designated Website is amended; or
	 
	 	(v)	 	the Company becomes aware that the Designated Website or any information posted
onto the Designated Website is or has been infected by any electronic virus or similar
software.

	 	 	If the Company notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all
information to be provided by the Company under this Agreement after the date of that notice
shall be supplied in paper form unless and until the Agent and each Website Lender is
satisfied that the circumstances giving rise to the notification are no longer continuing.
	 
	(d)	 	Any Website Lender may request, through the Agent, one paper copy of any information required
to be provided under this Agreement which is posted onto the Designated Website. The Company
shall comply with any such request within ten Business Days.
	 
	20.8	 	“Know your customer” checks
	 
	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation made after the date of this Agreement;
	 
	 	(ii)	 	any change in the status of an Obligor after the date of this Agreement; or
	 
	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its rights and
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

	 	 	obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any prospective
new Lender) to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, each Obligor
shall promptly upon the request of the Agent or any Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or, in the case of the event described in
paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent, such
Lender or, in the case of the event described in paragraph (iii) above, any prospective new
Lender to carry out and be satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

47

 

	(b)	 	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself) in
order for the Agent to carry out and be satisfied it has complied with all necessary “know
your customer” or other similar checks under all applicable laws and regulations pursuant to
the transactions contemplated in the Finance Documents.
	 
	(c)	 	The Company shall, by not less than 5 Business Days’ prior written notice to the Agent,
notify the Agent (which shall promptly notify the Lenders) of its intention to request that
one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 25 (Changes to the
Obligors).
	 
	(d)	 	Following the giving of any notice pursuant to paragraph (c) above, if the accession of such
Additional Obligor obliges the Agent or any Lender to comply with “know your customer” or
similar identification procedures in circumstances where the necessary information is not
already available to it, the Company shall promptly upon the request of the Agent or any
Lender supply, or procure the supply of, such documentation and other evidence as is
reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for
itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or
any prospective new Lender to carry out and be satisfied it has complied with all necessary
“know your customer” or other similar checks under all applicable laws and regulations
pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor.
	 
	21.	 	FINANCIAL COVENANTS
	 
	21.1	 	Financial Condition
	 
	 	 	The Company shall ensure that:

	 	(a)	 	the ratio of EBITDA to Net Interest Payable for each Relevant Period will not be
less than 3.50:1; and
	 
	 	(b)	 	the ratio of Net Borrowings as at the last day of each Relevant Period to EBITDA
for that Relevant Period will not be more than 3.75:1, where EBITDA for the purpose of
this covenant shall be adjusted to take into account the pro forma impact of any
acquisitions or disposals (other than of Managed Assets) made during the Relevant Period
by a member of the Group.

	21.2	 	Financial covenant calculations
	 
	 	 	For the purposes of this Agreement, Borrowings (including Financial Indebtedness for the
purpose of calculating Borrowings), EBITDA, Net Borrowings and Net Interest Payable shall be:

	 	(a)	 	calculated and interpreted on a consolidated basis in accordance with the
Applicable Accounting Principles of the Company and shall be expressed in the currency
in which the relevant financial statements of the Group delivered under Clause 20.1
(Financial statements) are presented; and
	 
	 	(b)	 	extracted (except as needed to reflect the terms of this Clause 21) from the
financial statements of the Group delivered under Clause 20.1 (Financial statements) and
Clause 20.2 (Compliance Certificate).

	21.3	 	Definitions
	 
	 	 	In this Agreement:

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	 	 	“Borrowings” means, as at any particular time, the aggregate outstanding principal, capital
or nominal amount (and any fixed or minimum premium payable on redemption) of the Financial
Indebtedness of members of the Group, other than:

	 	(a)	 	any indebtedness referred to in paragraph (g) of the definition of Financial
Indebtedness;
	 
	 	(b)	 	any Project Finance Indebtedness; and
	 
	 	(c)	 	any indebtedness referred to in paragraphs (f)(ii), (i) and (j) of the definition
of Financial Indebtedness except, in the case of paragraphs (i) and (j), to the extent
any such obligation or liability specified in such paragraphs has been provided for in
the financial statements of the Group delivered under Clause 20.1 (Financial statements)
or is disclosed as a contingency in the notes thereto and is quantified,

	 	 	and deducting, to the extent included, amounts attributable to interests of third parties in
members of the Group.
	 
	 	 	For this purpose, any amount outstanding or repayable in a currency other than US Dollars
shall on that day be taken into account in its US Dollar equivalent at the rate of exchange
that would have been used had an audited consolidated balance sheet of the Group been
prepared as at that day in accordance with IFRS as applicable to the Original Financial
Statements.
	 
	 	 	“Cash” means any credit balances on any deposit, savings, current or other account, and any
cash in hand, which is:

	 	(a)	 	freely withdrawable on demand;
	 
	 	(b)	 	not subject to any Security (other than permitted pursuant to Clause 22.3
(Negative pledge));
	 
	 	(c)	 	denominated and payable in freely transferable and freely convertible currency;
and
	 
	 	(d)	 	capable of being remitted to an Obligor in the United Kingdom.

	 	 	“Cash Equivalents” means short-term, highly liquid investments that are readily convertible
to known amounts of cash and which have contractual maturities of three months or less.
	 
	 	 	“EBITDA” means, in relation to any Relevant Period, the total consolidated operating profit
of the Group for that Relevant Period:

	 	(a)	 	before taking into account:

	 	(i)	 	Net Interest Payable;
	 
	 	(ii)	 	Tax; and
	 
	 	(iii)	 	all exceptional items; and

	 	(b)	 	after adding back all amounts provided for depreciation and amortisation; and
	 
	 	(c)	 	deducting, to the extent included, amounts attributable to interests of third
parties in members of the Group.

	 	 	“Net Borrowings” means, as at any particular time, Borrowings less Cash and Cash Equivalents.

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	 	 	“Net Interest Payable” means, in relation to any Relevant Period, the aggregate amount of
interest and any other finance charges accrued by the Group in that Relevant Period in
respect of Borrowings including:

	 	(a)	 	the interest element of leasing and hire purchase payments;
	 
	 	(b)	 	commitment fees, commissions and guarantee fees; and
	 
	 	(c)	 	amounts in the nature of interest payable in respect of any shares other than
equity share capital,

	 	 	adjusted (but without double counting) by:

	 	(i)	 	deducting interest income of the Group in respect of that Relevant Period;
	 
	 	(ii)	 	adding back the net amount payable (or deducting the net amount receivable) by
members of the Group in that Relevant Period as a result of close-out or termination of
any interest or (so far as they relate to interest) currency hedging activities;
	 
	 	(iii)	 	adding back the amount payable as a premium on any bond buy-back by members of
the Group in that Relevant Period;
	 
	 	(iv)	 	deducting, to the extent included, the amount payable by members of the Group in
that Relevant Period for arrangement or related fees in respect of Borrowings including,
for the avoidance of doubt, any un-amortised fees to be written-off in respect of the
Existing Facility (to include, for the avoidance of doubt, underwriting, syndication and
fees of a similar nature)); and
	 
	 	(v)	 	deducting, to the extent included, the amount of interest and other finance
charges attributable to interests of third parties in members of the Group and
adjusting, as appropriate, the additions or deductions specified in paragraphs (i) to
(iv) (inclusive) above as a consequence of interests of third parties in members of the
Group,

	 	 	but shall exclude in relation to the Relevant Period (A) net mark-to-market gains or losses
on revaluation of financial instruments, and (B) for the avoidance of doubt, any amount of
interest paid to the Group’s loyalty programme on the accumulated balance of cash received in
advance of the redemption of loyalty points awarded.
	 
	 	 	“Relevant Period” means:

	 	(a)	 	each financial year of the Company; and
	 
	 	(b)	 	each period beginning on the first day of the second half of a financial year of
the Company and ending on the last day of the first half of its next financial year.

	22.	 	GENERAL UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 22 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.
	 
	22.1	 	Authorisations
	 
	 	 	Each Obligor shall 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 Agent 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.
	 
	22.2	 	Compliance with laws
	 
	 	 	Each Obligor shall comply 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.
	 
	22.3	 	Negative pledge
	 
	(a)	 	No Obligor shall (and the Company shall ensure that no other member of the Group will) create
or permit to subsist any Security over any of its assets.
	 
	(b)	 	Paragraph (a) above does not apply to:

	 	(i)	 	any Security listed in Schedule 9 (Security) except to the extent the principal
amount secured by that Security exceeds the amount stated in that Schedule;
	 
	 	(ii)	 	any cash management, netting or set-off arrangement entered into by any member of
the Group in the ordinary course of its banking arrangements for the purpose of netting
debit and credit balances;
	 
	 	(iii)	 	any lien arising by operation of law and in the ordinary course of business;
	 
	 	(iv)	 	any Security over or affecting any asset acquired by a member of the Group after
the date of this Agreement to the extent that:

	 	(A)	 	the Security was not created in contemplation of the acquisition
of that asset by a member of the Group; and
	 
	 	(B)	 	the principal amount secured has not been increased in
contemplation of or since the acquisition of that asset by a member of the
Group;

	 	(v)	 	any Security over or affecting any asset of any company which becomes a member of
the Group after the date of this Agreement, where the Security is created prior to the
date on which that company becomes a member of the Group, to the extent that:

	 	(A)	 	the Security was not created in contemplation of the acquisition
of that company; and
	 
	 	(B)	 	the principal amount secured has not increased in contemplation
of or since the acquisition of that company;

	 	(vi)	 	any Security created pursuant to any Finance Document;
	 
	 	(vii)	 	any title transfer or retention of title arrangement entered into by any member
of the Group in the ordinary course of business;
	 
	 	(viii)	 	pledges of goods, the related documents of title and/or other related documents
arising or created in the ordinary course of business as security for indebtedness to a
bank or financial institution directly relating to the goods or documents over which
that pledge exists;

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	 	(ix)	 	any Security over cash or other investments for bank guarantees given in the
ordinary course of trading securing liabilities of up to $100,000,000 (or its equivalent
in any other currency or currencies) or to meet any margin requirement in respect of
derivative transactions;
	 
	 	(x)	 	any Security resulting from the rules and regulations of any clearing system or
stock exchange over shares and/or other securities held in that clearing system or stock
exchange;
	 
	 	(xi)	 	any Security securing Project Finance Indebtedness;
	 
	 	(xii)	 	any Security provided in relation to the InterContinental executive top-up
scheme securing liabilities of up to $100,000,000 (or its equivalent in any other
currency or currencies);
	 
	 	(xiii)	 	any Security replacing any Security permitted under paragraph (i) above or this
paragraph (xiii) and securing the same indebtedness or obligations whose principal
amount does not exceed the maximum principal amount secured, or which could be secured,
by the replaced Security when it is replaced;
	 
	 	(xiv)	 	any Security securing indebtedness the principal amount of which (when
aggregated with the principal amount of any other indebtedness which has the benefit of
Security given by any member of the Group other than any permitted under paragraphs (i)
to (xiii) above) does not exceed 5 per cent. of the Consolidated Gross Assets of the
Group as calculated using the most recently delivered financial statements of the Group;
or
	 
	 	(xv)	 	any other Security created or outstanding with the prior consent of the Majority
Lenders.

	22.4	 	Disposals
	 
	(a)	 	No Obligor shall (and the Company shall ensure that no other member of the Group will) 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 of the
Group (each a “Disposal”).
	 
	(b)	 	Paragraph (a) above does not apply to any Disposal:

	 	(i)	 	made in the ordinary course of day-to-day business of the disposing entity;
	 
	 	(ii)	 	of assets in exchange for or to be replaced within 12 months (or committed within
12 months to be replaced and actually replaced within 24 months) by other assets
comparable or superior as to type, value and quality;
	 
	 	(iii)	 	of assets which are obsolete or redundant;
	 
	 	(iv)	 	which constitutes the payment of cash for any purpose not prohibited by any
Finance Document;
	 
	 	(v)	 	by any member of the Group to another member of the Group;
	 
	 	(vi)	 	which constitutes any short term investment of funds not immediately required in
the Group’s business and the realisation of those investments;
	 
	 	(vii)	 	which constitutes the making of a lawful distribution;

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	 	(viii)	 	of assets which become Managed Assets following such Disposal;
	 
	 	(ix)	 	where the proceeds of that Disposal (net of fees, transaction costs and Taxes)
(or such smaller amount having regard to other Disposals which are permitted to be made
pursuant to the other sub-paragraphs of this paragraph (b)) are (within the period of 12
months following receipt of those proceeds) applied (or committed within the period of
12 months following receipt of those proceeds to be applied (and actually applied within
the period of 18 months following receipt of those proceeds)) in or towards capital
expenditure of the Group;
	 
	 	(x)	 	where any member of the Group has applied funds in or towards capital expenditure
of the Group within the period of 12 months prior to the receipt of the proceeds of that
Disposal and where the amount so applied is at least equal to the proceeds of that
Disposal (net of fees, transaction costs and Taxes) or, to the extent it is less than
those proceeds, the balance is attributed to, or applied pursuant to, another
sub-paragraph of this paragraph (b).
	 
	 	(xi)	 	where an amount equal to the proceeds of that Disposal (net of fees, transaction
costs and Taxes) (or such smaller amount having regard to other Disposals which are
permitted to be made pursuant to the other sub-paragraphs of this paragraph (b)) is used
in or towards a permanent reduction of Financial Indebtedness of the Group;
	 
	 	(xii)	 	to which the Majority Lenders have consented; or
	 
	 	(xiii)	 	where the higher of the market value or consideration receivable (when aggregated with
the higher of the market value or consideration receivable for any other sale, lease,
transfer or other disposal, to the extent not permitted under any of paragraphs (i) to
(xii) above), does not exceed 7.5 per cent. of the Consolidated Gross Assets of the
Group in any financial year as calculated using the most recently delivered financial
statements of the Group.

	22.5	 	Subsidiary Indebtedness
	 
	(a)	 	The Company shall ensure that the portion of Financial Indebtedness which is borrowed or
incurred by Subsidiaries that are not Guarantors under this Agreement shall not at any time
exceed the aggregate of:

	 	(i)	 	$400,000,000 (or its equivalent in any other currency or currencies); and (but
without double counting)
	 
	 	(ii)	 	$400,000,000 (or its equivalent in any other currency or currencies) (provided
such amount relates exclusively to Financial Indebtedness specified in paragraphs
(f)(ii), (i) and (j) of the definition of Financial Indebtedness),

	 	 	and provided that Financial Indebtedness for the purpose of this Clause 22.5 shall exclude:

	 	(A)	 	amounts borrowed under this Agreement;
	 
	 	(B)	 	qualifying amounts specified in paragraph (b) below which are
secured as permitted pursuant to paragraphs (b)(iv) or (v) of Clause 22.3
(Negative pledge) or otherwise is outstanding for the period of up to 6 months
following the relevant acquisition;

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	 	(C)	 	amounts which would be included as Financial Indebtedness under
paragraph (d) of the definition of Financial Indebtedness due to a change in
IFRS after the date of this Agreement but would not be treated as Financial
Indebtedness using Applicable Accounting Principles; and
	 
	 	(D)	 	amounts which are incurred in connection with the arrangements
described in paragraph (b)(ii) of Clause 22.3 (Negative pledge).

	(b)	 	Where a member of the Group acquires an asset or a company after the date of this Agreement
in respect of which Financial Indebtedness is outstanding (other than Project Finance
Indebtedness), where:

	 	(i)	 	that Financial Indebtedness was not created in contemplation of the acquisition
of that asset or company; and
	 
	 	(ii)	 	that Financial Indebtedness has not increased in contemplation of or since that
acquisition,

	 	 	then that Financial Indebtedness shall be permitted and be in addition to the threshold
numbers specified in paragraph (a) above.
	 
	22.6	 	Change of business
	 
	 	 	The Company shall procure that no substantial change is made to the general nature of the
business of the Group taken as a whole from that anticipated to be carried on at the date of
this Agreement but this shall not prevent any member of the Group engaging in any ancillary
or related business.
	 
	22.7	 	Insurance
	 
	 	 	Each Obligor shall (and the Company shall ensure that each other member of the Group will)
maintain insurances on and in relation to its business and assets with reputable underwriters
or insurance companies against those risks, and to the extent, usually insured against by
prudent companies located in the same or a similar location and carrying on a similar
business.
	 
	22.8	 	Acquisitions
	 
	 	 	No Obligor shall (and the Company shall ensure that no other member of the Group will)
complete (without the approval of the Majority Lenders which shall not be unreasonably
withheld or delayed) any acquisition (whether through a single transaction or series of
related transactions with the same party or with parties connected with one another) where
the consideration for the acquisition exceeds 25 per cent. of the Group’s market
capitalisation at the time of the London Stock Exchange market close on the day falling
immediately prior to the date of formal announcement of such acquisition by the Company.
	 
	22.9	 	Disposal of Receivables
	 
	(a)	 	No Obligor shall (and the Company shall ensure that no other member of the Group will) sell,
transfer or otherwise dispose of any of its trade receivables.
	 
	(b)	 	Paragraph (a) above does not apply to any sale, transfer or other disposal of any of its
receivables where the aggregate face value of all such receivables that are outstanding at any
time does not exceed $70,000,000 (or its equivalent in any other currency or currencies).

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	23.	 	EVENTS OF DEFAULT
	 
	 	 	Each of the events or circumstances set out in Clause 23 is an Event of Default.
	 
	23.1	 	Non-payment
	 
	 	 	An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at
the place at and in the currency in which it is expressed to be payable unless:

	 	(a)	 	its failure to pay is caused by administrative or technical error; and
	 
	 	(b)	 	payment is made within 5 Business Days of its due date.

	23.2	 	Financial covenants
	 
	 	 	Any requirement of Clause 21 (Financial covenants) is not satisfied.
	 
	23.3	 	Other obligations

	(a)	 	An Obligor does not comply with any provision of the Finance Documents (other than those
referred to in Clause 23.1 (Non-payment) and Clause 23.2 (Financial covenants)).
	 
	(b)	 	No Event of Default under paragraph (a) above will occur if the failure to comply is capable
of remedy and is remedied within 20 days of the earlier of Agent giving notice to the Company
or the Company becoming aware of the failure to comply.
	 
	23.4	 	Misrepresentation
	 
	(a)	 	Any representation or statement made or deemed to be made by an Obligor in the Finance
Documents or any other document delivered by or on behalf of any Obligor under or in
connection with any Finance Document is or proves to have been incorrect or misleading in any
material respect when made or deemed to be made.
	 
	(b)	 	No Event of Default under paragraph (a) above will occur if the circumstances giving rise to
a misrepresentation or misstatement is/are capable of remedy and is/are remedied within 20
days of the Agent giving notice to the Company requiring such remedy or (if earlier) the
Company becoming aware of the failure to comply.
	 
	23.5	 	Cross default
	 
	(a)	 	Any Financial Indebtedness of any member of the Group is not paid when due nor within any
applicable grace period.
	 
	(b)	 	Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes
due and payable prior to its specified maturity as a result of an event of default (however
described).
	 
	(c)	 	Any creditor of any member of the Group becomes entitled to declare any Financial
Indebtedness of any member of the Group due and payable prior to its specified maturity as a
result of an event of default (however described).
	 
	(d)	 	No Event of Default will occur under this Clause 23.5 if the aggregate amount of Financial
Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) and (b)
above is less than $50,000,000 (or its equivalent in any other currency or currencies) and
Financial Indebtedness for the purposes of this Clause 23.5 shall exclude, in each case,
Project Finance Indebtedness.

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	23.6	 	Insolvency
	 
	(a)	 	An Obligor or a Material Subsidiary is unable or admits inability to pay its debts as they
fall due, suspends making payments on any of its debts or, by reason of actual or anticipated
financial difficulties, commences negotiations with one or more of its creditors with a view
to rescheduling any of its indebtedness.
	 
	(b)	 	A moratorium is declared or takes effect in respect of all or a material part (or a
particular type of) the indebtedness of an Obligor or a Material Subsidiary.
	 
	23.7	 	Insolvency proceedings
	 
	(a)	 	Any corporate action or legal proceeding is taken (subject to paragraph (d) below) for the
winding-up or dissolution of an Obligor or Material Subsidiary, or the appointment of a
liquidator, administrator, administrative receiver, compulsory manager or other similar
officer is appointed in respect of, an Obligor or Material Subsidiary other than for a solvent
winding-up, dissolution or liquidation of an Obligor (other than the Company or the
Guarantors) or a Material Subsidiary.
	 
	(b)	 	Any corporate action or legal proceeding is taken (subject to paragraph (d) below), or an
agreement is entered into or proposed by an Obligor or Material Subsidiary, for the suspension
of payments by, a moratorium of any indebtedness of, or a general composition, compromise or
assignment for the benefit of the creditors of, an Obligor or Material Subsidiary.
	 
	(c)	 	A receiver, administrative receiver, compulsory manager or other similar officer is appointed
in respect of an Obligor or Material Subsidiary or any of its assets, or any Security is
enforced over an Obligor’s or Material Subsidiary’s assets, having an aggregate value of and
in respect of indebtedness aggregating not less than $50,000,000 (or its equivalent in any
other currency or currencies).
	 
	(d)	 	A person presents a petition for the winding up, liquidation, dissolution, administration or
suspension of payments of an Obligor or Material Subsidiary except:

	 	(i)	 	where such petition is being contested in good faith and by appropriate means and
is in any event dismissed within 30 days of its presentation; or
	 
	 	(ii)	 	where such presentation is frivolous or vexatious or an abuse of process and is
in any event dismissed within 30 days of its presentation.

	23.8	 	Creditors’ process
	 
	 	 	Any expropriation, attachment, sequestration, distress or execution affects any asset or
assets of an Obligor or Material Subsidiary having an aggregate value of and in respect of
indebtedness aggregating at least $50,000,000 (or its equivalent in any other currency or
currencies) and is not discharged within 30 days.
	 
	23.9	 	Ownership of the Obligors
	 
	 	 	An Obligor (other than the Company) is not or ceases to be a Subsidiary of the Company.
	 
	23.10	 	Unlawfulness
	 
	 	 	It is or becomes unlawful for an Obligor to perform any of its material obligations under the
Finance Documents.

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	23.11	 	Repudiation
	 
	 	 	An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance
Document.
	 
	23.12	 	Cessation of business
	 
	 	 	An Obligor ceases to carry on its business except pursuant to a reconstruction, amalgamation,
merger or consolidation on solvent terms or, for the avoidance of doubt, by way of a
disposal.
	 
	23.13	 	Acceleration
	 
	 	 	On and at any time after the occurrence of an Event of Default which is continuing the Agent
may, and shall if so directed by the Majority Lenders, by notice to the Company:

	 	(a)	 	cancel 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 Agent on the instructions of the Majority
Lenders.

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SECTION 9

CHANGES TO PARTIES

	24.	 	CHANGES TO THE LENDERS
	 
	24.1	 	Assignments and transfers by the Lenders
	 
	 	 	Subject to this Clause 24, a Lender (the “Existing Lender”) may:

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

	 	 	to another bank or financial institution which is a Qualifying Lender or, following the
occurrence of an Event of Default which is continuing, 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 which, in each case, is a Qualifying Lender (the
“New Lender”).
	 
	24.2	 	Conditions of assignment or transfer
	 
	(a)	 	The consent of the Company is required for an assignment or transfer by an Existing Lender,
unless the assignment or transfer is to another Lender or an Affiliate of a Lender or
following the occurrence of an Event of Default which is continuing.
	 
	(b)	 	The consent of the Company to an assignment or transfer must not be unreasonably withheld or
delayed. The Company will be deemed to have given its consent ten days after the Existing
Lender has requested it unless consent is expressly refused by the Company within that time.
	 
	(c)	 	The consent of the Company to an assignment or transfer must not be withheld solely because
the assignment or transfer may result in an increase to the Mandatory Costs.
	 
	(d)	 	A partial transfer by a Lender shall be in a minimum amount of $10,000,000.
	 
	(e)	 	An assignment will only be effective on:

	 	(i)	 	receipt by the Agent of written confirmation from the New Lender (in form and
substance satisfactory to the Agent) that the New Lender will assume the same
obligations to the other Finance Parties as it would have been under if it was an
Original Lender; and
	 
	 	(ii)	 	performance by the Agent of all “know your customer” or other checks relating to
any person that it is required to carry out in relation to such assignment to a New
Lender, the completion of which the Agent shall promptly notify to the Existing Lender
and the New Lender.

	(f)	 	A transfer will only be effective if the procedure set out in Clause 24.5 (Procedure for
transfer) is complied with.
	 
	(g)	 	If:

	 	(i)	 	a Lender assigns or transfers any of its rights or obligations under the Finance
Documents or changes its Facility Office; and
	 
	 	(ii)	 	as a result of circumstances existing at the date the assignment, transfer or
change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender

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	 	 	 	acting through its new Facility Office under Clause 13 (Tax gross-up and indemnities)
or Clause 14 (Increased Costs),

	 	 	then the New Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those Clauses to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the assignment, transfer or
change had not occurred.
	 
	24.3	 	Assignment or transfer fee
	 
	 	 	The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to
the Agent (for its own account) a fee of £1500.
	 
	24.4	 	Limitation of responsibility of Existing Lenders
	 
	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender for:

	 	(i)	 	the legality, validity, effectiveness, adequacy or enforceability of the Finance
Documents or any other documents;
	 
	 	(ii)	 	the financial condition of any Obligor;
	 
	 	(iii)	 	the performance and observance by any Obligor of its obligations under the
Finance Documents or any other documents; or
	 
	 	(iv)	 	the accuracy of any statements (whether written or oral) made in or in connection
with any Finance Document or any other document,

	 	 	and any representations or warranties implied by law are excluded.
	 
	(b)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

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

	(c)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and obligations
assigned or transferred under this Clause 24; or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender by reason of
the non-performance by any Obligor of its obligations under the Finance Documents or
otherwise.

	24.5	 	Procedure for transfer
	 
	(a)	 	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) a
transfer is effected in accordance with paragraph (b) below when the Agent executes an
otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the
New Lender. The

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	 	 	Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt
by it of a duly completed Transfer Certificate appearing on its face to comply with the terms
of this Agreement and delivered in accordance with the terms of this Agreement, execute that
Transfer Certificate.
	 
	(b)	 	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the
Existing Lender and the New Lender once it is satisfied it has complied with all necessary
“know your customer” or other similar checks under all applicable laws and regulations in
relation to the transfer to such New Lender.
	 
	(c)	 	On the Transfer Date:

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

	24.6	 	Copy of Transfer Certificate to Company
	 
	 	 	The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Company a copy of that Transfer Certificate.
	 
	24.7	 	Disclosure of information
	 
	 	 	Any Lender may disclose, on a need to know basis, to any of its Affiliates and any other
person:

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

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	 	 	any information about any Obligor, the Group and the Finance Documents as that Lender shall
consider appropriate if, in relation to paragraphs (a) and (b) above, the person to whom the
information is to be given has entered into a Confidentiality Undertaking. This Clause
supersedes any previous agreement relating to the confidentiality of this information.
	 
	24.8	 	Confidentiality
	 
	 	 	Each Finance Party undertakes with each Obligor:

	 	(a)	 	to keep confidential and not to disclose to anyone any information (including any
projections) relating to the Group, any member of the Group or any Finance Document, in
whatever form, and including information given orally and any document, electronic file
or any other way of representing or recording information which contains or is derived
or copied from such information except:

	 	(i)	 	for any lawfully obtained from any other source, or that is or
becomes public knowledge, other than as a direct or indirect result of any
breach of any obligation of confidentiality; or
	 
	 	(ii)	 	as permitted by Clause 24.7 (Disclosure of information) or by a
Confidentiality Undertaking envisaged by that Clause;

	 	(b)	 	to use that information only for the purpose of, or as permitted by, the Finance
Documents; and
	 
	 	(c)	 	to use all reasonable endeavours to ensure that any person to whom that Finance
Party passes any such information (unless disclosed under paragraph (c) of Clause 24.7
(Disclosure of information) acknowledges and complies with the provisions of this Clause
24.8 as if that person were also bound by it.

	25.	 	CHANGES TO THE OBLIGORS
	 
	25.1	 	Assignments and transfer by Obligors
	 
	 	 	No Obligor may assign any of its rights or transfer any of its rights or obligations under
the Finance Documents.
	 
	25.2	 	Additional Borrowers
	 
	(a)	 	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.8 (“Know
your customer” checks), the Company may request that any of its Subsidiaries becomes an
Additional Borrower. That Subsidiary shall become an Additional Borrower if:

	 	(i)	 	all Lenders (acting reasonably) approve the addition of that Subsidiary and which
they shall do so if that Subsidiary is a wholly owned subsidiary incorporated in the
United Kingdom;
	 
	 	(ii)	 	the Company delivers to the Agent a duly completed and executed Accession Letter;
	 
	 	(iii)	 	the Company confirms that no Default is continuing or would occur as a result of
that Subsidiary becoming an Additional Borrower; and
	 
	 	(iv)	 	the Agent has received all of the documents and other evidence listed in Part II
of Schedule 2 (Conditions precedent) in relation to that Additional Borrower, each in
form and substance reasonably satisfactory to the Agent.

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	(b)	 	The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has
received (in form and substance reasonably satisfactory to it) all the documents and other
evidence listed in Part II of Schedule 2 (Conditions precedent).
	 
	25.3	 	Resignation of a Borrower
	 
	(a)	 	The Company may request that a Borrower (other than the Company) ceases to be a Borrower by
delivering to the Agent a Resignation Letter.
	 
	(b)	 	The Agent shall accept a Resignation Letter and notify the Company and the Lenders of its
acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the Resignation
Letter (and the Company has confirmed this is the case); and
	 
	 	(ii)	 	that Borrower is under no actual or contingent obligations as a Borrower under
any Finance Documents,

	 	 	whereupon that company shall cease to be a Borrower and shall have no further rights or
obligations under the Finance Documents.
	 
	25.4	 	Additional Guarantors
	 
	(a)	 	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 20.8 (“Know
your customer” checks), the Company may request that any of its Subsidiaries become an
Additional Guarantor. That Subsidiary shall become an Additional Guarantor if:

	 	(i)	 	the Company delivers to the Agent a duly completed and executed Accession Letter;
and
	 
	 	(ii)	 	the Agent has received all of the documents and other evidence listed in Part II
of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each in
form and substance reasonably satisfactory to the Agent.

	(b)	 	The Agent shall notify the Company and the Lenders promptly upon being satisfied that it has
received (in form and substance reasonably satisfactory to it) all the documents and other
evidence listed in Part II of Schedule 2 (Conditions precedent).
	 
	25.5	 	Repetition of Representations
	 
	 	 	Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the
Repeating Representations are true and correct in relation to it as at the date of delivery
as if made by reference to the facts and circumstances then existing.
	 
	25.6	 	Resignation of a Guarantor
	 
	(a)	 	The Company may request that a Guarantor (other than the Company) ceases to be a Guarantor by
delivering to the Agent a Resignation Letter.
	 
	(b)	 	The Agent shall accept a Resignation Letter and notify the Company and the Lenders of its
acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the Resignation
Letter (and the Company has confirmed this is the case); and
	 
	 	(ii)	 	the Majority Lenders have consented to the Company’s request (which they shall do
if in relation to any Subsidiary of the Company, Clause 22.5 (Subsidiary Indebtedness)
is being complied with at such time).

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SECTION 10

THE FINANCE PARTIES

	26.	 	ROLE OF THE AGENT AND THE ARRANGER
	 
	26.1	 	Appointment of the Agent
	 
	(a)	 	Each other Finance Party appoints the Agent to act as its agent under and in connection with
the Finance Documents.
	 
	(b)	 	Each other Finance Party authorises the Agent to exercise the rights, powers, authorities and
discretions specifically given to the Agent under or in connection with the Finance Documents
together with any other incidental rights, powers, authorities and discretions.
	 
	26.2	 	Duties of the Agent
	 
	(a)	 	The Agent shall promptly forward to a Party the original or a copy of any document which is
delivered to the Agent for that Party by any other Party.
	 
	(b)	 	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to
review or check the adequacy, accuracy or completeness of any document it forwards to another
Party.
	 
	(c)	 	If the Agent receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly notify the Finance
Parties.
	 
	(d)	 	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other
fee payable to a Finance Party (other than the Agent or the Arranger) under this Agreement it
shall promptly notify the other Finance Parties.
	 
	(e)	 	The Agent’s duties under the Finance Documents are solely mechanical and administrative in
nature.
	 
	26.3	 	Role of the Arranger
	 
	 	 	Except as specifically provided in the Finance Documents, the Arranger has no obligations of
any kind to any other Party under or in connection with any Finance Document.
	 
	26.4	 	No fiduciary duties
	 
	(a)	 	Nothing in this Agreement constitutes the Agent or the Arranger as a trustee or fiduciary of
any other person.
	 
	(b)	 	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the
profit element of any sum received by it for its own account.
	 
	26.5	 	Business with the Group
	 
	 	 	The Agent and the Arranger may accept deposits from, lend money to and generally engage in
any kind of banking or other business with any member of the Group.
	 
	26.6	 	Rights and discretions of the Agent
	 
	(a)	 	The Agent may rely on:

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

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

	(b)	 	The Agent may assume (unless it has received notice to the contrary in its capacity as agent
for the Lenders) that:

	 	(i)	 	no Default has occurred (unless it has actual knowledge of a Default arising
under Clause 23.1 (Non-payment));
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party or the Majority
Lenders has not been exercised; and
	 
	 	(iii)	 	any notice or request made by the Company (other than a Utilisation Request or
Selection Notice) is made on behalf of and with the consent and knowledge of all the
Obligors.

	(c)	 	The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants,
surveyors or other experts.
	 
	(d)	 	The Agent may act in relation to the Finance Documents through its personnel and agents.
	 
	(e)	 	The Agent may disclose to any other Party any information it reasonably believes it has
received as agent under this Agreement.
	 
	(f)	 	Notwithstanding any other provision of any Finance Document to the contrary, neither the
Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary
duty or duty of confidentiality.
	 
	26.7	 	Majority Lenders’ instructions
	 
	(a)	 	Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any
right, power, authority or discretion vested in it as Agent in accordance with any
instructions given to it by the Majority Lenders (or, if so instructed by the Majority
Lenders, refrain from exercising any right, power, authority or discretion vested in it as
Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking
any action) in accordance with an instruction of the Majority Lenders.
	 
	(b)	 	Unless a contrary indication appears in a Finance Document, any instructions given by the
Majority Lenders will be binding on all the Finance Parties.
	 
	(c)	 	The Agent may refrain from acting in accordance with the instructions of the Majority Lenders
(or, if appropriate, the Lenders) until it has received such security as it may require for
any cost, loss or liability (together with any associated VAT) which it may incur in complying
with the instructions.
	 
	(d)	 	In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders),
the Agent may act (or refrain from taking action) as it considers to be in the best interest
of the Lenders.
	 
	(e)	 	The Agent is not authorised to act on behalf of a Lender (without first obtaining that
Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

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	26.8	 	Responsibility for documentation
	 
	 	 	Neither the Agent nor the Arranger:

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

	26.9	 	Exclusion of liability
	 
	(a)	 	Without limiting paragraph (b) below, the Agent will not be liable for any action taken by it
under or in connection with any Finance Document, unless directly caused by its gross
negligence or wilful misconduct.
	 
	(b)	 	No Party (other than the Agent) may take any proceedings against any officer, employee or
agent of the Agent in respect of any claim it might have against the Agent or in respect of
any act or omission of any kind by that officer, employee or agent in relation to any Finance
Document and any officer, employee or agent of the Agent may rely on this Clause.
	 
	(c)	 	The Agent will not be liable for any delay (or any related consequences) in crediting an
account with an amount required under the Finance Documents to be paid by the Agent if the
Agent has taken all necessary steps as soon as reasonably practicable to comply with the
regulations or operating procedures of any recognised clearing or settlement system used by
the Agent for that purpose.
	 
	(d)	 	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out any “know your
customer” or other checks in relation to any person on behalf of any Lender and each Lender
confirms to the Agent and the Arranger that it is solely responsible for any such checks it is
required to carry out and that it may not rely on any statement in relation to such checks
made by the Agent or the Arranger.
	 
	26.10	 	Lenders’ indemnity to the Agent
	 
	 	 	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify the Agent, within three Business Days of demand, against any
cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent’s gross
negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the
Agent has been reimbursed by an Obligor pursuant to a Finance Document).
	 
	26.11	 	Resignation of the Agent
	 
	(a)	 	The Agent may resign and appoint one of its Affiliates acting through an office in the United
Kingdom as successor by giving notice to the other Finance Parties and the Company.
	 
	(b)	 	Alternatively the Agent may resign by giving notice to the other Finance Parties and the
Company, in which case the Majority Lenders (after consultation with the Company) may appoint
a successor Agent.

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	(c)	 	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b)
above within 30 days after notice of resignation was given, the Agent (after consultation with
the Company) may appoint a successor Agent (acting through an office in the United Kingdom).
	 
	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such
documents and records and provide such assistance as the successor Agent may reasonably
request for the purposes of performing its functions as Agent under the Finance Documents.
	 
	(e)	 	The Agent’s resignation notice shall only take effect upon the appointment of a successor.
	 
	(f)	 	Upon the appointment of a successor, the retiring Agent shall be discharged from any further
obligation in respect of the Finance Documents but shall remain entitled to the benefit of
this Clause 26. Its successor and each of the other Parties shall have the same rights and
obligations amongst themselves as they would have had if such successor had been an original
Party.
	 
	(g)	 	After consultation with the Company the Majority Lenders may, by notice to the Agent, require
it to resign in accordance with paragraph (b) above. In this event, the Agent shall resign in
accordance with paragraph (b) above.
	 
	26.12	 	Confidentiality
	 
	(a)	 	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its
agency division which shall be treated as a separate entity from any other of its divisions or
departments.
	 
	(b)	 	If information is received by another division or department of the Agent, it may be treated
as confidential to that division or department and the Agent shall not be deemed to have
notice of it.
	 
	26.13	 	Relationship with the Lenders
	 
	(a)	 	The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and
acting through its Facility Office unless it has received not less than five Business Days
prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
	 
	(b)	 	Each Lender shall supply the Agent with any information required by the Agent in order to
calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost formulae).
	 
	26.14	 	Credit appraisal by the Lenders
	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the Agent and the
Arranger that it has been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in connection with any
Finance Document including but not limited to:

	 	(a)	 	the financial condition, status and nature of each member of the Group;
	 
	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and any other agreement, arrangement or document entered into, made or executed
in anticipation of, under or in connection with any Finance Document;
	 
	 	(c)	 	whether that Lender has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other

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	 	 	 	agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document; and
	 
	 	(d)	 	the adequacy, accuracy and/or completeness of any information provided by the
Agent, any Party or by any other person under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other agreement,
arrangement or document entered into, made or executed in anticipation of, under or in
connection with any Finance Document.

	26.15	 	Reference Banks
	 
	 	 	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Agent shall (in agreement with the Company, such
agreement not to be unreasonably withheld) appoint another Lender or an Affiliate of a Lender
to replace that Reference Bank.
	 
	26.16	 	Deduction from amounts payable by the Agent
	 
	 	 	If any Party owes an amount to the Agent under the Finance Documents the Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from any payment to
that Party which the Agent would otherwise be obliged to make under the Finance Documents and
apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of
the Finance Documents that Party shall be regarded as having received any amount so deducted.
	 
	27.	 	CONDUCT OF BUSINESS BY THE FINANCE PARTIES
	 
	 	 	No provision of this Agreement will:

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

	28.	 	SHARING AMONG THE FINANCE PARTIES
	 
	28.1	 	Payments to Finance Parties
	 
	 	 	If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an
Obligor other than in accordance with Clause 29 (Payment mechanics) and applies that amount
to a payment due under the Finance Documents then:

	 	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details of
the receipt or recovery to the Agent;
	 
	 	(b)	 	the Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Finance Party would have been paid had the receipt or recovery
been received or made by the Agent and distributed in accordance with Clause 29 (Payment
mechanics), without taking account of any Tax which would be imposed on the Agent in
relation to the receipt, recovery or distribution; and

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	 	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Agent determines may be retained by the Recovering
Finance Party as its share of any payment to be made, in accordance with Clause 29.5
(Partial payments).

	28.2	 	Redistribution of payments
	 
	 	 	The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and
distribute it between the Finance Parties (other than the Recovering Finance Party) in
accordance with Clause 29.5 (Partial payments).
	 
	28.3	 	Recovering Finance Party’s rights
	 
	(a)	 	On a distribution by the Agent under Clause 28.2 (Redistribution of payments), the Recovering
Finance Party will be subrogated to the rights of the Finance Parties which have shared in the
redistribution.
	 
	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on its rights
under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance
Party for a debt equal to the Sharing Payment which is immediately due and payable.
	 
	28.4	 	Reversal of redistribution
	 
	 	 	If any part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party, then:

	 	(a)	 	each Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 28.2 (Redistribution of payments) shall, upon request of the Agent,
pay to the Agent for account of that Recovering Finance Party an amount equal to the
appropriate part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance Party for its proportion of any interest
on the Sharing Payment which that Recovering Finance Party is required to pay); and
	 
	 	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

	28.5	 	Exceptions
	 
	(a)	 	This Clause 28 shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable claim against
the relevant Obligor.
	 
	(b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party any amount
which the Recovering Finance Party has received or recovered as a result of taking legal or
arbitration proceedings, if:

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

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SECTION 11

ADMINISTRATION

	29.	 	PAYMENT MECHANICS
	 
	29.1	 	Payments to the Agent
	 
	(a)	 	On each date on which an Obligor or a Lender is required to make a payment under a Finance
Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary
indication appears in a Finance Document) for value on the due date at the time and in such
funds specified by the Agent as being customary at the time for settlement of transactions in
the relevant currency in the place of payment.
	 
	(b)	 	Payment shall be made to such account in the principal financial centre of the country of
that currency (or, in relation to euro, in the principal financial centre in a Participating
Member State or London) with such bank as the Agent specifies.
	 
	29.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to Clause 29.3 (Distributions to an Obligor) and Clause 29.4 (Clawback), be made
available by the Agent as soon as practicable after receipt to the Party entitled to receive
payment in accordance with this Agreement (in the case of a Lender, for the account of its
Facility Office), to such account as that Party may notify to the Agent by not less than five
Business Days’ notice with a bank in the principal financial centre of the country of that
currency (or, in relation to euro, in the principal financial centre of a Participating
Member State or London).
	 
	29.3	 	Distributions to an Obligor
	 
	 	 	The Agent may (with the consent of the Obligor or in accordance with Clause 30 (Set-off))
apply any amount received by it for that Obligor in or towards payment (on the date and in
the currency and funds of receipt) of any amount due from that Obligor under the Finance
Documents or in or towards purchase of any amount of any currency to be so applied.
	 
	29.4	 	Clawback
	 
	(a)	 	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the
Agent is not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that it has
actually received that sum.
	 
	(b)	 	If the Agent pays an amount to another Party and it proves to be the case that the Agent had
not actually received that amount, then the Party to whom that amount (or the proceeds of any
related exchange contract) was paid by the Agent shall on demand refund the same to the Agent
together with interest on that amount from the date of payment to the date of receipt by the
Agent, calculated by the Agent to reflect its cost of funds.
	 
	29.5	 	Partial payments
	 
	(a)	 	If the Agent receives a payment that is insufficient to discharge all the amounts then due
and payable by an Obligor under the Finance Documents, the Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following order:

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	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of
the Agent or the Arranger under the Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of any accrued interest, fee or
commission due but unpaid under this Agreement;
	 
	 	(iii)	 	thirdly, in or towards payment pro rata of any principal due but unpaid under
this Agreement; and
	 
	 	(iv)	 	fourthly, in or towards payment pro rata of any other sum due but unpaid under
the Finance Documents.

	(b)	 	The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs
(a)(ii) to (iv) above.
	 
	(c)	 	Paragraphs (a) and (b) above will override any appropriation made by an Obligor.
	 
	29.6	 	No set-off by Obligors
	 
	 	 	All payments to be made by an Obligor under the Finance Documents shall be calculated and be
made without (and free and clear of any deduction for) set-off or counterclaim.
	 
	29.7	 	Business Days
	 
	(a)	 	Any payment 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.
	 
	29.8	 	Currency of account
	 
	(a)	 	Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and
payment for any sum due from an Obligor under any Finance Document.
	 
	(b)	 	A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the
currency in which that Loan or Unpaid Sum is denominated on its due date.
	 
	(c)	 	Each payment of interest shall be made in the currency in which the sum in respect of which
the interest is payable was denominated when that interest accrued.
	 
	(d)	 	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which
the costs, expenses or Taxes are incurred.
	 
	(e)	 	Any amount expressed to be payable in a currency other than the Base Currency shall be paid
in that other currency.
	 
	29.9	 	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,

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	 	 	 	the currency or currency unit of that country designated by the Agent (acting
reasonably and after consultation with the Company; 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 Agent (acting
reasonably and after consultation with the Company).

	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent
(acting reasonably and after consultation with the Company) specifies to be necessary, be
amended to comply with any generally accepted conventions and market practice in the Relevant
Interbank Market and otherwise to reflect the change in currency.
	 
	30.	 	SET-OFF
	 
	 	 	Without prejudice to the normal rights of the Finance Parties at law, after the occurrence of
an Event of Default which is continuing, a Finance Party may set off any matured obligation
due from an Obligor under the Finance Documents (to the extent beneficially owned by that
Finance Party) against any matured obligation owed by that Finance Party to that Obligor,
regardless of the place of payment, booking branch or currency of either obligation. If the
obligations are in different currencies, the Finance Party may convert either obligation at a
market rate of exchange in its usual course of business for the purpose of the set-off. That
Finance Party shall promptly notify that Obligor of any such set-off or conversion.
	 
	31.	 	NOTICES
	 
	31.1	 	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.
	 
	31.2	 	Addresses
	 
	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with the Finance Documents is:

	 	(a)	 	in the case of the Company, that identified with its name below;
	 
	 	(b)	 	in the case of each Lender or any other Obligor, that notified in writing to the
Agent on or prior to the date on which it becomes a Party; and
	 
	 	(c)	 	in the case of the Agent, that identified with its name below,

	 	 	or any substitute address, fax number or department or officer as the Party may notify to the
Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not
less than five Business Days’ notice.
	 
	31.3	 	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

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

	 	 	and, if a particular department or officer is specified as part of its address details
provided under Clause 31.2 (Addresses), if addressed to that department or officer.
	 
	(b)	 	Any communication or document to be made or delivered to the Agent will be effective only
when actually received by the Agent and then only if it is expressly marked for the attention
of the department or officer identified with the Agent’s signature below (or any substitute
department or officer as the Agent shall specify for this purpose).
	 
	(c)	 	All notices from or to an Obligor shall be sent through the Agent.
	 
	(d)	 	Any communication or document made or delivered to the Company in accordance with this Clause
will be deemed to have been made or delivered to each of the Obligors.
	 
	31.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 31.2 (Addresses) or changing its own address or fax number, the
Agent shall notify the other Parties.
	 
	31.5	 	Electronic communication
	 
	(a)	 	Any communication to be made between the Agent and a Lender or an Obligor and the Agent under
or in connection with the Finance Documents may be made by electronic mail or other electronic
means, if the Agent and the relevant Lender or, as appropriate, the relevant Obligor and the
Agent:

	 	(i)	 	agree that, unless and until notified to the contrary, this is to be an accepted
form of communication;
	 
	 	(ii)	 	notify each other in writing of their electronic mail address and/or any other
information required to enable the sending and receipt of information by that means; and
	 
	 	(iii)	 	notify each other of any change to their address or any other such information
supplied by them.

	(b)	 	Any electronic communication made between the Agent and a Lender or an Obligor and the Agent
will be effective only when actually received in readable form and in the case of any
electronic communication made by a Lender to the Agent or an Obligor to the Agent only if it
is addressed in such a manner as the Agent shall specify for this purpose.
	 
	(c)	 	The ability of an Obligor to use electronic communications is without prejudice to its
obligation to submit any Utilisation Request, Selection Notice, Accession Letter, Resignation
Letter or Compliance Certificate in the form required under this Agreement or any other
document or notice which requires the signature of any director or authorised signatory of an
Obligor.

	31.6	 	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

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

	32.	 	CALCULATIONS AND CERTIFICATES
	 
	32.1	 	Accounts
	 
	 	 	In any litigation or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by a Finance Party are prima facie
evidence of the matters to which they relate.
	 
	32.2	 	Certificates and Determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount under any Finance
Document shall set out the basis of calculation in reasonable detail and is prima facie
evidence of the matters to which it relates.
	 
	32.3	 	Day count convention
	 
	 	 	Any interest, commission or fee accruing under a Finance Document will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year of 365 days in
the case of sterling or 360 days in the case of euros and US Dollars or, in any case where
the practice in the Relevant Interbank Market differs, in accordance with that market
practice.
	 
	33.	 	PARTIAL INVALIDITY
	 
	 	 	If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way be
affected or impaired.
	 
	34.	 	REMEDIES AND WAIVERS
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Finance Documents shall operate as a waiver, nor shall any single
or partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement are
cumulative and not exclusive of any rights or remedies provided by law.
	 
	35.	 	AMENDMENTS AND WAIVERS
	 
	35.1	 	Required consents
	 
	(a)	 	Subject to Clause 35.2 (Exceptions) any term of the Finance Documents may be amended or
waived only with the consent of the Majority Lenders and the Obligors and any such amendment
or waiver will be binding on all Parties.
	 
	(b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by
this Clause.
	 
	35.2	 	Exceptions
	 
	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

73

 

	 	(i)	 	the definition of “EURIBOR”, “LIBOR” or “Majority Lenders” in Clause 1.1
(Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the Finance Documents;
	 
	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any payment of
principal, interest, fees or commission payable;
	 
	 	(iv)	 	an increase in or an extension of any Commitment;
	 
	 	(v)	 	a change to the Borrowers or Guarantors other than in accordance with Clause 25
(Changes to the Obligors);
	 
	 	(vi)	 	any provision which expressly requires the consent of all the Lenders; or
	 
	 	(vii)	 	Clause 2.2 (Finance Parties’ rights and obligations), Clause 24 (Changes to the
Lenders), Clause 28 (Sharing among the Finance Parties), or this Clause 35,

	 	 	shall not be made without the prior consent of all the Lenders.
	 
	(b)	 	An amendment or waiver which relates to the rights or obligations of the Agent or the
Arranger may not be effected without the consent of the Agent or the Arranger.
	 
	36.	 	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.

74

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

	37.	 	GOVERNING LAW
	 
	 	 	This Agreement is governed by English law.
	 
	38.	 	ENFORCEMENT
	 
	38.1	 	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 regarding the existence, validity or
termination of this Agreement) (a “Dispute”).
	 
	(b)	 	The Parties agree that the courts of England are the most appropriate and convenient courts
to settle Disputes and accordingly no Party will argue to the contrary.
	 
	(c)	 	This Clause 38.1 is for the benefit of the Finance Parties only. As a result, no Finance
Party shall be prevented from taking proceedings relating to a Dispute in any other courts
with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent
proceedings in any number of jurisdictions.
	 
	38.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, each Obligor
(other than an Obligor incorporated in England and Wales):

	 	(a)	 	irrevocably appoints the Company 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 relevant Obligor of the
process will not invalidate the proceedings concerned.

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

75

 

	 	 	 
	The Company
	 
	 	 
	INTERCONTINENTAL HOTELS GROUP PLC
	 
	 	 
	Address:
	 	67 Alma Road
	 
	 	Windsor
	 
	 	Berkshire SL4 3HD
	 
	 	 
	Fax No:
	 	01753 410101
	 
	 	 
	Attention:
	 	The Company Secretary
	 
	 	 
	cc:
	 	Treasurer
	 
	 	InterContinental Hotels Group PLC
	 
	 	No 1 First Avenue
	 
	 	Centrum 100
	 
	 	Burton on Trent
	 
	 	Staffordshire DE14 2WB
	 
	 	 
	Fax No:
	 	01283 514767
	 
	 	 
	By:
	 	 
	 
	 	 
	The Original Borrowers
	 
	 	 
	INTERCONTINENTAL HOTELS GROUP PLC
	 
	 	 
	Address:
	 	67 Alma Road
	 
	 	Windsor
	 
	 	Berkshire SL4 3HD
	 
	 	 
	Fax No:
	 	01753 410101
	 
	 	 
	Attention:
	 	The Company Secretary
	 
	 	 
	cc:
	 	Treasurer
	 
	 	InterContinental Hotels Group PLC
	 
	 	No 1 First Avenue
	 
	 	Centrum 100
	 
	 	Burton on Trent
	 
	 	Staffordshire DE14 2WB
	 
	 	 
	Fax No:
	 	01283 514767
	 
	 	 
	By:
	 	 

 

 

	 	 	 
	INTERCONTINENTAL HOTELS LIMITED
	 
	 	 
	Address:

	 	67 Alma Road
	 

	 	Windsor
	 

	 	Berkshire SL4 3HD
	 
	 	 
	Fax No:

	 	01753 410101
	 
	 	 
	Attention:

	 	The Company Secretary
	 
	 	 
	cc:

	 	Treasurer
	 

	 	InterContinental Hotels Group PLC
	 

	 	No 1 First Avenue
	 

	 	Centrum 100
	 

	 	Burton on Trent
	 

	 	Staffordshire DE14 2WB
	 
	 	 
	Fax No:

	 	01283 514767
	 
	 	 
	By:
	 	 
	 
	 	 
	SIX CONTINENTS LIMITED
	 
	 	 
	Address:

	 	67 Alma Road
	 

	 	Windsor
	 

	 	Berkshire SL4 3HD
	 
	 	 
	Fax No:

	 	01753 410101
	 
	 	 
	Attention:

	 	The Company Secretary
	 
	 	 
	cc:

	 	Treasurer
	 

	 	InterContinental Hotels Group PLC
	 

	 	No 1 First Avenue
	 

	 	Centrum 100
	 

	 	Burton on Trent
	 

	 	Staffordshire DE14 2WB
	 
	 	 
	Fax No:

	 	01283 514767
	 
	 	 
	By:
	 	 

 

 

The Original Guarantors

INTERCONTINENTAL HOTELS GROUP PLC

By:

INTERCONTINENTAL HOTELS LIMITED

By:

SIX CONTINENTS LIMITED

By:

 

 

The Arranger

BANK OF AMERICA, N.A.

By:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

By:

BARCLAYS CAPITAL

By:

HSBC BANK PLC

By:

LLOYDS TSB CORPORATE MARKETS

By:

THE ROYAL BANK OF SCOTLAND PLC

By:

SOCIÉTÉ GÉNÉRALE CORPORATE & INVESTMENT BANKING

By:

WESTLB AG, LONDON BRANCH

By:

 

 

The Original Lenders

BARCLAYS BANK PLC

By:

BoA NETHERLANDS COÖPERATIEVE U.A.

By:

HSBC BANK PLC

By:

LLOYDS TSB BANK PLC

By:

SOCIÉTÉ GÉNÉRALE

By:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

By:

THE ROYAL BANK OF SCOTLAND PLC

By:

WESTLB AG, LONDON BRANCH

By:

BBVA IRELAND PLC.

By:

CITIBANK, N.A. LONDON BRANCH

By:

 

 

JPMORGAN CHASE BANK, N.A.

By:

SCOTIABANK EUROPE PLC

By:

SVENSKA HANDELSBANKEN AB (PUBL)

By:

SUNTRUST BANK

By:

DBS BANK LTD., LONDON BRANCH

By:

WESTPAC BANKING CORPORATION

ABN 33 007 457 141

By:

	 	 	 
	The Agent
	 
	 	 
	HSBC BANK PLC
	 
	 	 
	Address:

	 	8 Canada Square
	 

	 	London
	 

	 	E14 5HQ
	 
	 	 
	Fax No:

	 	+44 20 7991 4348
	 
	 	 
	Attention:

	 	Corporate Trust & Loan Agency
	 
	 	 
	By:

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