Document:

alv-ex46_329.htm

Exhibit 4.6

 

 

EXECUTION VERSION

AGENCY AGREEMENT

DATEd 26 June 2018

AUTOLIV, INC.

EUR 500,000,000

0.750 per cent. Guaranteed Notes due 2023

 

 

	

 

Allen & Overy LLP

 

	
 
	
0013117-0002372 ICM:29837691.10
	
 

 

 

contents

 

		
	
Clause
	
Page

 

	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
Definitions and Interpretation
	
 
	
2

	
2.
	
 
	
Appointment of Paying Agents
	
 
	
6

	
3.
	
 
	
Authentication, Effectuation and Delivery of Notes
	
 
	
6

	
4.
	
 
	
Payment to the Fiscal Agent
	
 
	
7

	
5.
	
 
	
Notification of Non Receipt of Payment
	
 
	
8

	
6.
	
 
	
Duties of the Paying Agents
	
 
	
8

	
7.
	
 
	
Reimbursement of the Paying Agents
	
 
	
9

	
8.
	
 
	
Notice of any Withholding or Deduction
	
 
	
9

	
9.
	
 
	
Duties of the Fiscal Agent in connection with Optional Redemption and Redemption for Taxation Reasons
	
 
	
9

	
10.
	
 
	
Publication and Receipt of Notices
	
 
	
10

	
11.
	
 
	
Cancellation of Notes and Coupons
	
 
	
10

	
12.
	
 
	
Issue of Replacement Notes and Coupons
	
 
	
11

	
13.
	
 
	
Records and Certificates
	
 
	
11

	
14.
	
 
	
Copies of Documents Available for Inspection
	
 
	
12

	
15.
	
 
	
Commissions and Expenses
	
 
	
12

	
16.
	
 
	
Indemnity
	
 
	
13

	
17.
	
 
	
Repayment by Fiscal Agent
	
 
	
14

	
18.
	
 
	
Conditions of Appointment
	
 
	
14

	
19.
	
 
	
Communication with Paying Agents
	
 
	
15

	
20.
	
 
	
Termination of Appointment
	
 
	
16

	
21.
	
 
	
Meetings of Noteholders
	
 
	
17

	
22.
	
 
	
Notices
	
 
	
17

	
23.
	
 
	
Communications
	
 
	
18

	
24.
	
 
	
Amendments
	
 
	
19

	
25.
	
 
	
Contracts (Rights of Third Parties) Act 1999
	
 
	
19

	
26.
	
 
	
Taxes and Stamp Duties
	
 
	
19

	
27.
	
 
	
General
	
 
	
19

	
28.
	
 
	
Governing Law and Submission to Jurisdiction
	
 
	
19

 

	
Schedule

	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
Forms of Global Notes
	
 
	
21

	
 
	
 
	
Part 1
	
Form of the Temporary Global Note
	
 
	
21

	
 
	
 
	
Part 2
	
Form of the Permanent Global Note
	
 
	
27

	
2.
	
 
	
Form of Definitive Note
	
 
	
32

	
 
	
 
	
Part 1
	
Form of Definitive Note and Coupon
	
 
	
32

	
 
	
 
	
Part 2
	
Conditions of the Notes
	
 
	
37

	
3.
	
 
	
Form of Deed of Covenant
	
 
	
53

	
4.
	
 
	
Form of Guarantee
	
 
	
56

	
5.
	
 
	
Form of Put Notice
	
 
	
61

	
6.
	
 
	
Provisions for Meetings of Noteholders
	
 
	
63

	
7.
	
 
	
Additional Duties of the Fiscal Agent
	
 
	
70

	
 

	
Signatories
	
 
	
71

 

	
0013117-0002372 ICM:29837691.10
	
 
	
 

 

 

THIS AGREEMENT is made on 26 June 2018

BETWEEN:

	
(1)
	
AUTOLIV, INC. (the Issuer);

	
(2)
	
AUTOLIV ASP, INC. (the Guarantor); and

	
(3)
	
HSBC BANK PLC in its capacity as fiscal and principal paying agent (in such capacity the Fiscal Agent, which expression shall include any successor fiscal agent appointed under clause 20).

WHEREAS:

	
(A)
	
The Issuer has agreed to issue EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes) which expression shall include, unless the context otherwise requires, any further Notes issued pursuant to Condition 14 (Further Issues) and forming a single series with the Notes.

	
(B)
	
The Notes will be issued in bearer form in the denominations of EUR 100,000 and integral multiples of EUR 1,000 in excess thereof up to and including EUR 199,000 each with interest coupons (Coupons) attached.  The Notes are intended to be held in a manner which would allow Eurosystem eligibility.

	
(C)
	
The Notes will initially be represented by a temporary Global Note (the Temporary Global Note) in or substantially in the form set out in Part 1 of Schedule 1 which will be exchanged in accordance with its terms for a permanent Global Note (the Permanent Global Note and, together with the Temporary Global Note, the Global Notes) in or substantially in the form set out in Part 2 of Schedule 1.

	
(D)
	
The definitive Notes and Coupons will be in or substantially in the respective forms set out in Part 1 of Schedule 2.  The Conditions of the Notes (the Conditions) will be in or substantially in the form set out in Part 2 of Schedule 2.

	
(E)
	
The Notes will be issued with the benefit of a deed of covenant dated 26 June 2018 (as amended or supplemented from time to time) (the Deed of Covenant) entered into by the Issuer substantially in the form set out in Schedule 3. 

	
(F)
	
Payments in respect of the Notes will be unconditionally and irrevocably guaranteed by the Guarantor as provided in a guarantee (the Guarantee) entered into by the Guarantor substantially in the form set out in Schedule 4.

IT IS AGREED as follows:

	
1.
	
Definitions and Interpretation

	
1.1
	
As used in this Agreement:

Agents means the Fiscal Agent and the other Paying Agents;

Auditors means the auditors for the time being of the Issuer or the Guarantor (as the case may be) or, in the event of their being unable or unwilling promptly to carry out any action requested of them as provided in this Agreement or the Conditions, such other leading firm of accountants as may be nominated or approved by the Issuer or the Guarantor (as the case may be);

Authorised Person means any person who is designated in writing by the Issuer from time to time to give Instructions to the Agents under the terms of this Agreement;

 

	
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Authorised Signatory means any person who (i) is a Director or the Secretary of the Issuer or the Guarantor (as the case may be) or (ii) has been notified by the Issuer or the Guarantor (as the case may be) in writing to the Fiscal Agent as being duly authorised to sign documents and to do other acts and things on behalf of the Issuer or the Guarantor (as the case may be) for the purposes of this Agreement;

Basic Terms Modification means any proposal:

	
 
	
(a)
	
to change the date, or the method of determining the date, for payment of principal, interest or any other amount in respect of the Notes, to reduce or cancel the amount of principal, interest or any other amount payable on any date in respect of the Notes or to change the method of calculating the amount of principal, interest or any other amount payable in respect of the Notes on any date;

	
 
	
(b)
	
modifying any provision of the Guarantee;

	
 
	
(c)
	
to change the currency in which any amount due in respect of the Notes is payable;

	
 
	
(d)
	
to change the quorum required at any meeting of Noteholders or the majority required to pass an Extraordinary Resolution or any other resolution of Noteholders or the number or percentage of votes required to be cast, or the number or percentage of Notes required to be held, in connection with the taking of any decision or action by or on behalf of the Noteholders or any of them;

	
 
	
(e)
	
to change this definition, the definition of "Extraordinary Resolution", the definition of "outstanding" or the definition of "Written Resolution" in the Conditions or in this Agreement;

	
 
	
(f)
	
to change or waive the provisions of the Notes set out in Condition 4 (Negative Pledge);

	
 
	
(g)
	
to change the law governing the Notes, the courts to the jurisdiction of which the Issuer has been submitted in the Notes, the Issuer's obligation to maintain an agent for service of process in England, in respect of actions or proceedings brought by any Noteholder, set out in Condition 15 (Governing Law and Submission to Jurisdiction);

	
 
	
(h)
	
to approve any exchange or substitution of the Notes for, or the conversion of the Notes into, any other obligations or securities of the Issuer or any other person; or

	
 
	
(i)
	
in connection with any proposed exchange, substitution or conversion of the type referred to in subparagraph (h) to amend any of the provisions of the Notes describing circumstances in which Notes may be redeemed or declared due and payable prior to their scheduled maturity date;

Clearstream, Luxembourg means Clearstream Banking S.A.;

Euroclear means Euroclear Bank S.A./N.V.;

FATCA Withholding means any withholding or deduction required pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations thereunder or official interpretations thereof) or an intergovernmental agreement between the United States and another jurisdiction facilitating the implementation thereof (or any law implementing such an intergovernmental agreement);

 

	
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Instructions means any written notices, directions or instructions received by the Agents from an Authorised Person or from a person reasonably believed by the Agents to be an Authorised Person;

outstanding means in relation to the Notes all the Notes issued other than:

	
 
	
(a)
	
those Notes which have been redeemed pursuant to Condition 7 (Redemption and Purchase);

	
 
	
(b)
	
those Notes in respect of which the date for redemption in accordance with the Conditions has occurred and the redemption moneys (including premium (if any) and all interest payable thereon) have been duly paid to the Fiscal Agent in the manner provided in clause 4 (and, where appropriate, notice to that effect has been given to the Noteholders under Condition 12 (Notices)) and remain available for payment of the relevant Notes and/or Coupons;

	
 
	
(c)
	
those Notes which have been purchased and cancelled pursuant to Condition 7 (Redemption and Purchase);

	
 
	
(d)
	
those Notes in respect of which claims have become prescribed under Condition 9 (Prescription);

	
 
	
(e)
	
those mutilated or defaced Notes which have been surrendered and cancelled and in respect of which replacements have been issued pursuant to Condition 11 (Replacement of Notes and Coupons);

	
 
	
(f)
	
(for the purpose only of ascertaining the principal amount of the Notes outstanding and without prejudice to the status for any other purpose of the relevant Notes) those Notes which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued pursuant to Condition 11 (Replacement of Notes and Coupons); and

	
 
	
(g)
	
the Temporary Global Note to the extent that it has been duly exchanged for the Permanent Global Note and the Permanent Global Note to the extent that it has been exchanged for the relative Notes in definitive form in each case pursuant to their respective provisions,

provided that for each of the following purposes, namely:

	
 
	
(i)
	
the right to attend and vote at any meeting of the Noteholders or the right to sign or authorise the signature of any Written Resolution or passing any Extraordinary Resolution by way of electronic consents given through the relevant clearing systems; and

	
 
	
(ii)
	
Condition 13 (Meetings of Noteholders and Modification) and paragraphs 4, 7 and 9 of Schedule 6,

those Notes (if any) which are for the time being held by any person (including but not limited to, the Issuer, the Guarantor or any of its other Subsidiaries) for the benefit of the Issuer, the Guarantor or any of its other Subsidiaries shall (unless and until ceasing to be so held) be deemed not to remain outstanding; 

Put Notice means a notice substantially in the form set out in Schedule 5;

specified office of any Agent means the office specified in clause 22 or any other specified offices as may from time to time be duly notified pursuant to clause 22; and

 

	
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1.2
	
(a)In this Agreement, unless the contrary intention appears, a reference to:

	
 
	
(i)
	
an amendment includes a supplement, restatement or novation and amended is to be construed accordingly;

	
 
	
(ii)
	
a person includes (i) any individual, company, unincorporated association, government, state agency, international organisation or other entity and (ii) its successors and assigns;

	
 
	
(iii)
	
the records of Euroclear and Clearstream, Luxembourg shall be the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such customer's interest in the Notes;

	
 
	
(iv)
	
a provision of a law is a reference to that provision as extended, amended or re-enacted;

	
 
	
(v)
	
a clause or schedule is a reference to a clause of, or a schedule to, this Agreement;

	
 
	
(vi)
	
a document or any provision of a document is a reference to that document or provision as amended from time to time; and

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

	
 
	
(b)
	
In this Agreement:

	
 
	
(i)
	
words denoting the singular shall include the plural and vice versa;

	
 
	
(ii)
	
words denoting one gender only shall include the other gender; and

	
 
	
(iii)
	
words denoting persons only shall include firms and corporations and vice versa.

	
 
	
(c)
	
Words and expressions defined in the Conditions and not otherwise defined in this Agreement shall have the same meanings when used in this Agreement.

	
 
	
(d)
	
The headings in this Agreement do not affect its interpretation.

	
 
	
(e)
	
All references in this Agreement to costs or charges or expenses shall include any value added tax or similar tax charged or chargeable in respect thereof. 

	
 
	
(f)
	
References in this Agreement to principal, premium and/or interest shall include any additional amounts payable pursuant to Condition 8 (Taxation).

	
 
	
(g)
	
As used herein, in relation to any Notes which are to have a "listing" or be "listed" on Euronext Dublin, or any other Stock Exchange in a jurisdiction where admission to listing is approved and announced by a regulatory authority other than the Stock Exchange itself, listing and listed shall be construed to mean that such Notes have been admitted to the Official List and admitted to trading on the Global Exchange Market of Euronext Dublin (the Market) or the relevant list of such other regulatory authority and admitted to trading on such Stock Exchange's market for listed securities, respectively. The Market is not a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU).

	
 
	
(h)
	
All references in this Agreement to Euroclear and/or Clearstream, Luxembourg shall, wherever the context so admits, be deemed to include references to any additional or alternative clearing system in which the relevant Notes are from time to time accepted for clearance.

 

	
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2.
	
Appointment of Paying Agents

	
2.1
	
The Issuer and the Guarantor hereby appoint, on the terms and subject to the conditions of this Agreement, HSBC Bank plc as fiscal and principal paying agent, in each case acting at its specified office.

References herein to Paying Agents shall include the Fiscal Agent and any other paying agent appointed hereunder from time to time. 

	
2.2
	
Each Agent accepts its appointment, and agrees to act, as agent of the Issuer and the Guarantor in relation to the Notes and agrees to comply with the terms of this Agreement.  Each Agent further agrees to perform the duties specified for it in the Conditions.  The obligations of the Agents are several and not joint.

	
2.3
	
The Fiscal Agent undertakes to the Issuer that it will, in connection with the issue of the Notes, perform the duties which are stated to be performed by it in Schedule 7.  Each of the Paying Agents (other than the Fiscal Agent) agrees that if any information that is required by the Fiscal Agent to perform the duties set out in Schedule 7 becomes known to it, it will promptly provide such information to the Fiscal Agent.

	
2.4
	
The Issuer hereby authorises and instructs the Fiscal Agent to elect Euroclear as common safekeeper.  The Issuer acknowledges that any such election is subject to the right of Euroclear and Clearstream, Luxembourg to jointly determine that the other shall act as common safekeeper and agrees that no liability shall attach to the Fiscal Agent in respect of any such election made by it.

	
3.
	
Authentication, Effectuation and Delivery of Notes

	
3.1
	
The Issuer authorises and instructs the Fiscal Agent to (i) authenticate each of the Global Notes and any definitive Notes delivered pursuant to clause 3.4, (ii) transmit such Global Notes electronically to the common safekeeper and to give effectuation instructions in respect of the Global Notes following its authentication thereof and (iii) instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate principal amount of the Notes.  The Issuer further authorises and instructs the Fiscal Agent to destroy each Global Note retained by it following its receipt of confirmation from the common safekeeper that the relevant Global Note has been effectuated.

	
3.2
	
The Issuer authorises and instructs the Fiscal Agent to cause interests in the Temporary Global Note to be exchanged for interests in the Permanent Global Note and interests in a Global Note to be exchanged for definitive Notes in accordance with their respective terms. Following the exchange of the last interest in a Global Note, the Fiscal Agent shall cause the Global Note to be cancelled and delivered to the Issuer or as it may direct destroyed.

	
3.3
	
The Issuer undertakes that the Permanent Global Note (duly executed on behalf of the Issuer) will be available to be exchanged for interests in the Temporary Global Note in accordance with the terms of the Temporary Global Note.

	
3.4
	
If a Global Note is to be exchanged in accordance with its terms for definitive Notes, the Issuer undertakes that it will deliver to, or to the order of, the Fiscal Agent, as soon as reasonably practicable and in any event not later than 15 days before the relevant exchange is due to take place, definitive Notes (with Coupons attached) in an aggregate principal amount of EUR 500,000,000 or such lesser amount as is the principal amount of Notes represented by the Permanent Global Note to be issued in exchange for the Global Note.  Each definitive Note and Coupon so delivered shall be duly executed on behalf of the Issuer. 

 

	
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3.5
	
The Fiscal Agent shall cause all Notes delivered to and held by it under this Agreement to be maintained in safe custody and shall ensure that interests in the Temporary Global Note are only exchanged for interests in the Permanent Global Note in accordance with the terms of the Temporary Global Note and this Agreement and that the definitive Notes are issued only in accordance with the terms of a Global Note and this Agreement.

	
3.6
	
So long as any of the Notes is outstanding the Fiscal Agent shall, within seven days of any request by the Issuer, certify to the Issuer the number of definitive Notes held by it under this Agreement.

	
4.
	
Payment to the Fiscal Agent

	
4.1
	
The Issuer or, failing the Issuer, the Guarantor shall, by no later than 10.00 a.m. (London time) on the day on which any payment of principal, premium and/or interest in respect of any of the Notes becomes due under the Conditions, transfer to an account specified by the Fiscal Agent such amount of EUR as shall be sufficient for the purposes of such payment of principal, premium and/or interest in immediately available funds.

	
4.2
	
The Issuer or, as the case may be, the Guarantor shall ensure that, before 10.00 a.m. (London time) on the second Business Day prior to each day on which any payment is to be made to the Fiscal Agent under clause 4.1, the Fiscal Agent shall receive a copy of an irrevocable payment instruction to the bank through which the payment is to be made.  For the purposes of this clause 4.2, Business Day means a day on which commercial banks and foreign exchange markets settle payments and are open for general business in the United States of America and United Kingdom.

	
4.3
	
Subject to the Fiscal Agent being satisfied in its sole discretion that payment will be duly made as provided in clause 4.1, the Fiscal Agent or the relevant Paying Agent shall pay or cause to be paid all amounts due in respect of the Notes on behalf of the Issuer in the manner provided in the Conditions.  If any payment provided for in clause 4.1 is made late but otherwise in accordance with the provisions of this Agreement, the Fiscal Agent and each Paying Agent shall nevertheless make payments in respect of the Notes as aforesaid following receipt by it of such payment.

	
4.4
	
Notwithstanding any other provision of this Agreement, each Paying Agent shall be entitled to make a withholding or deduction from any payment which it makes under the Notes for or on account of any Tax, if and only to the extent so required by Applicable Law, in which event such Paying Agent shall make such payment after such withholding or deduction has been made and shall account to the relevant Authority within the time allowed for the amount so withheld or deducted or, at its option, shall reasonably promptly after making such payment return to the Issuer the amount so deducted or withheld, in which case, the Issuer shall so account to the relevant Authority for such amount. For the avoidance of doubt, FATCA Withholding is a deduction or withholding which is deemed to be required by Applicable Law for the purposes of this clause 4. In this clause 4.4 and clauses 4.5 and 18.11, Applicable Law means any law or regulation, Authority means any competent regulatory, prosecuting, Tax or governmental authority in any jurisdiction and Tax means any present or future taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of any Authority having power to tax.

	
4.5
	
In the event that the Issuer determines in its sole discretion that any deduction or withholding for or on account of any Tax will be required by Applicable Law in connection with any payment due to any Paying Agent on the Notes, then the Issuer will be entitled to redirect or reorganise any such payment in any way that it sees fit in order that the payment may be made without such deduction or withholding provided that any such redirected or reorganised payment is made through a recognised institution of international standing and such payment is otherwise made in accordance with this Agreement. The Issuer will promptly notify the Fiscal Agent of any such redirection or reorganisation. For the avoidance of doubt, FATCA Withholding is a deduction or withholding which is deemed to be required by Applicable Law for the purposes of this clause 4.5. If for any reason the Fiscal Agent considers in its sole discretion that the amounts to be received by the Fiscal Agent pursuant to clause 4.1 will be, or the amounts actually received by it pursuant thereto are, 

 

	
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insufficient to satisfy all claims in respect of all payments then falling due in respect of the Notes, the Fiscal Agent shall then forthwith notify the Issuer and the Guarantor of such insufficiency and, until such time as the Fiscal Agent has received the full amount of all such payments, neither the Fiscal Agent nor any Paying Agent shall be obliged to pay any such claims.

	
4.6
	
For the avoidance of doubt, the Paying Agents shall not have any obligation to make any payment of principal, premium or interest in respect of the Notes to the Noteholders until the Fiscal Agent has been put in funds by the Issuer.

	
5.
	
Notification of Non Receipt of Payment

The Fiscal Agent shall notify each of the other Paying Agents, and the Issuer and the Guarantor forthwith:

	
 
	
(a)
	
if it has not by the relevant date specified in clause 4.1 received unconditionally the full amount in Euro required for the payment; and

	
 
	
(b)
	
if it receives unconditionally the full amount of any sum payable in respect of the Notes or Coupons after such date.

The Fiscal Agent shall, at the request and expense of the Issuer or the Guarantor, forthwith upon receipt of any amount as described in subparagraph (b), cause notice of that receipt to be published under Condition 12 (Notices).

	
6.
	
Duties of the Paying Agents

	
6.1
	
Subject to the payments to the Fiscal Agent provided for by clause 4 being duly made, the Paying Agents shall act as paying agents of the Issuer and the Guarantor in respect of the Notes and pay or cause to be paid on behalf of the Issuer and/or the Guarantor, on and after each date on which any payment becomes due and payable, any principal, premium (if any) and/or interest then payable under the Conditions and this Agreement.  

	
6.2
	
If default is made by the Issuer and the Guarantor in respect of any payment, then unless and until the full amount of the relevant payment has been made in accordance with the provisions of this Agreement (except as to the time of making the same) or other arrangements satisfactory to the Fiscal Agent have been made, neither the Fiscal Agent nor any of the other Paying Agents shall be bound to act as paying agents.

	
6.3
	
Without prejudice to clauses 6.1 and 6.2, if the Fiscal Agent pays any amounts to the holders of Notes or Coupons or to any other Paying Agent at a time when it has not received payment in full in respect of the Notes in accordance with clause 4.1 (the excess of the amounts so paid over the amounts so received being the Shortfall), the Issuer (failing which the Guarantor) will, in addition to paying amounts due under clause 4.1, pay to the Fiscal Agent on demand interest (at a rate which represents the Fiscal Agent's cost of funding the Shortfall) on the Shortfall (or the unreimbursed portion thereof) until the receipt in full by the Fiscal Agent of the Shortfall.

	
6.4
	
Whilst any Notes are represented by a Global Note, all payments due in respect of the Notes shall be made to, or to the order of, the holder of the Global Note, subject to and in accordance with the provisions of the Global Note. On the occasion of each payment, the Fiscal Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such payment.

	
6.5
	
If on presentation of a Note or Coupon the amount payable in respect of the Note or Coupon is not paid in full (otherwise than as a result of withholding or deduction for or on account of any Taxes as permitted by the Conditions) the Fiscal Agent shall instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect such shortfall in payment.

 

	
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7.
	
Reimbursement of the Paying Agents

	
7.1
	
If a Paying Agent other than the Fiscal Agent makes any payment in accordance with this Agreement: 

	
 
	
(a)
	
it shall notify the Fiscal Agent of the amount so paid by it and the serial number and outstanding amount of each Note in relation to which such payment was made; and

	
 
	
(b)
	
the Fiscal Agent shall pay to such Paying Agent out of the funds received by it under clause 4 by wire transfer in euros and in same day, freely transferable, cleared funds to such account with such bank as such Paying Agent has by notice to the Fiscal Agent specified for the purpose, an amount equal to the amount so paid by such Paying Agent.

	
7.2
	
If the Fiscal Agent makes any payment in accordance with this Agreement, it shall be entitled to appropriate for its own account out of the funds received by it under clause 4 an amount equal to the amount so paid by it.

	
8.
	
Notice of any Withholding or Deduction

	
8.1
	
If the Issuer or the Guarantor is, in respect of any payment in respect of the Notes, compelled to withhold or deduct any amount for or on account of any Taxes as contemplated by Condition 8 (Taxation), the Issuer or, as the case may be, the Guarantor shall give notice to the Fiscal Agent as soon as it becomes aware of the requirement to make the withholding or deduction and shall give to the Fiscal Agent such information as the Fiscal Agent shall require to enable it to comply with the requirement.

	
8.2
	
Without prejudice to clause 8.1, the Issuer or the Guarantor shall notify the Fiscal Agent in the event that it determines that any payment to be made by any Paying Agent under the Notes is a payment which could be subject to FATCA Withholding if such payment were made to a recipient that is generally unable to receive payments free from FATCA Withholding, and the extent to which the relevant payment is so treated, provided, however, that the Issuer’s obligation under this clause 8 shall apply only to the extent that such payments are so treated by virtue of characteristics of the Issuer, the Notes, or both.

	
9.
	
Duties of the Fiscal Agent in connection with Optional Redemption and Redemption for Taxation Reasons

	
9.1
	
If the Issuer decides to redeem all of the Notes for the time being outstanding under Condition 7.2 (Redemption for Taxation Reasons), it shall give notice of the decision and of the principal amount of Notes which it has decided to redeem to the Fiscal Agent at least 15 days before the giving of the notice to Noteholders in accordance with Condition 12 (Notices).

	
9.2
	
If the Issuer decides to redeem all or some only of the Notes for the time being outstanding under Condition 7.3 (Redemption at the Option of the Issuer) or Condition 7.5 (Redemption at the Option of the Holders), it shall give notice of the decision and of the principal amount of Notes which it has decided to redeem to the Fiscal Agent at least 15 days before the giving of the notice to Noteholders in accordance with Condition 12 (Notices).

	
9.3
	
If the Issuer decides to redeem all of the Notes for the time being outstanding under Condition 7.5 (Redemption at the Option of the Holders), it shall give notice of the decision and of the principal amount of Notes which it has decided to redeem to the Fiscal Agent at least 15 days before the giving of the notice to Noteholders in accordance with Condition 12 (Notices).

 

	
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9.4
	
Each Paying Agent will keep a stock of Put Notices and will make them available on demand to holders of definitive Notes, the Conditions of which provide for redemption at the option of Noteholders.  Upon receipt of any Note deposited in the exercise of a put option in accordance with the Conditions, the Paying Agent with which the Note is deposited shall hold the Note (together with any Coupons relating to it deposited with it) on behalf of the depositing Noteholder (but shall not, save as provided below, release it) until the due date for redemption of the relevant Note consequent upon the exercise of the option, when, subject as provided below, it shall present the Note (and any such unmatured Coupons) to itself for payment of the amount due together with any interest due on the date of redemption in accordance with the Conditions and shall pay those moneys in accordance with the directions of the Noteholder contained in the relevant Put Notice.  

If, prior to the due date for its redemption, an Event of Default has occurred and is continuing or the Note becomes immediately due and repayable or if upon due presentation payment of the redemption moneys is improperly withheld or refused, the Paying Agent concerned shall post the Note (together with any such Coupons) by uninsured post to, and at the risk of, the relevant Noteholder (unless the Noteholder has otherwise requested and paid the costs of insurance to the relevant Paying Agent at the time of depositing the Notes) at the address given by the Noteholder in the relevant Put Notice.  At the end of each period for the exercise of any put option, each Paying Agent shall promptly notify the Fiscal Agent of the principal amount of the Notes in respect of which the option has been exercised with it together with their serial numbers and the Fiscal Agent shall promptly notify those details to the Issuer and the Guarantor. 

	
9.5
	
The Fiscal Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Notes redeemed by the Issuer to reflect such redemptions.

	
10.
	
Publication and Receipt of Notices

	
10.1
	
On behalf of and at the written request and expense of the Issuer (failing which the Guarantor), the Fiscal Agent shall cause to be published all notices required to be given by the Issuer and/or the Guarantor under the Conditions.

	
10.2
	
The Fiscal Agent, on receipt of a notice or other communication received on behalf of the Issuer or the Guarantor, shall as soon as reasonably practicable forward a copy to the Issuer and the Guarantor.

	
11.
	
Cancellation of Notes and Coupons

	
11.1
	
All Notes which are redeemed, all definitive Notes which are surrendered in connection with redemption (together with all unmatured Coupons attached to or delivered with Notes), all Coupons which are paid and all Global Notes which are exchanged in full (in accordance with the provisions of clause 3.2) will be cancelled by the Paying Agent by or to which they are redeemed, surrendered, paid or exchanged.  Each of the Paying Agents shall give to the Fiscal Agent details of all payments made by it and shall deliver all cancelled Notes and Coupons to the Fiscal Agent (or as the Fiscal Agent may specify).  Where Notes are purchased by or on behalf of the Issuer or the Guarantor, the Issuer or, as the case may be, the Guarantor, will promptly notify the Fiscal Agent in writing of all Notes it has purchased. 

	
11.2
	
The Fiscal Agent or its authorised agent shall (unless otherwise instructed by the Issuer in writing and save as provided in clause 13.1) destroy all cancelled Notes and Coupons and, upon written request, shall furnish the Issuer and the Guarantor with a certificate of destruction containing written particulars of the serial numbers of the Notes and the number by maturity date of Coupons so destroyed.

	
11.3
	
The Principal Paying Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Notes which are cancelled.

 

	
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12.
	
Issue of Replacement Notes and Coupons

	
12.1
	
The Issuer shall cause a sufficient quantity of additional forms of Notes and Coupons to be available, upon request, to the Fiscal Agent at its specified office for the purpose of issuing replacement Notes or Coupons as provided below.

	
12.2
	
The Fiscal Agent shall, subject to and in accordance with Condition 11 (Replacement of Notes and Coupons) and the following provisions of this clause, cause to be delivered any replacement Notes or Coupons which the Issuer may determine to issue in place of Notes or Coupons which have been lost, stolen, mutilated, defaced or destroyed.

	
12.3
	
In the case of a mutilated or defaced Note, the Fiscal Agent shall ensure that (unless otherwise covered by such indemnity as the Issuer may require) any replacement Note only has attached to it Coupons corresponding to those attached to the mutilated or defaced Note which is presented for replacement.

	
12.4
	
The Fiscal Agent shall obtain verification, in the case of an allegedly lost, stolen or destroyed Note, or Coupon in respect of which the serial number is known, that the Note or Coupon has not previously been redeemed or paid.  The Fiscal Agent shall not issue a replacement Note or Coupon unless and until the applicant has:

	
 
	
(a)
	
paid such expenses and costs as may be incurred in connection with the replacement;

	
 
	
(b)
	
furnished it with such evidence and indemnity as the Issuer may reasonably require; and

	
 
	
(c)
	
in the case of a mutilated or defaced Note or Coupon, surrendered it to the Fiscal Agent.

	
12.5
	
The Fiscal Agent shall cancel mutilated or defaced Notes or Coupons in respect of which replacement Notes or Coupons have been issued pursuant to this clause.  The Fiscal Agent shall, unless otherwise requested by the Issuer or the Guarantor, destroy all those Notes and Coupons and shall furnish the Issuer and the Guarantor with a destruction certificate containing the information specified in clause 11.2.

	
12.6
	
The Fiscal Agent shall, on issuing any replacement Note or Coupon, forthwith inform the Issuer and the other Paying Agents of the serial number of the replacement Note or Coupon issued and (if known) of the serial number of the Note or Coupon in place of which the replacement Note or Coupon has been issued.  Whenever replacement Coupons are issued under this clause, the Fiscal Agent shall also notify the other Paying Agents of the maturity dates of the lost, stolen, mutilated, defaced or destroyed Coupons and of the replacement Coupons issued.

	
12.7
	
Whenever a Note or Coupon for which a replacement Note or Coupon has been issued and the serial number of which is known is presented to a Paying Agent for payment, the relevant Paying Agent shall immediately send notice to the Issuer and (if it is not itself the Fiscal Agent) the other Paying Agents and shall not be obliged to make any payment in respect of such Note or Coupon.

	
13.
	
Records and Certificates

	
13.1
	
The Fiscal Agent shall in respect of the Coupons of each maturity, retain until the expiry of ten years from the Relevant Date (as defined in the Conditions) in respect of the Coupons either (i) all paid Coupons of that maturity or (ii) a list of the serial numbers of Coupons of that maturity still remaining unpaid and unexchanged. 

 

	
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13.2
	
The Fiscal Agent shall (i) keep full and complete records of (such records to be made available to the Issuer and the Guarantor at all reasonable times), and (ii) upon written request give to the Issuer and the Guarantor, as soon as possible and in any event within four months after the date of redemption, purchase, payment or replacement of a Note or Coupon (as the case may be), a certificate stating (as applicable): 

	
 
	
(a)
	
the aggregate principal amount of Notes which have been redeemed and the aggregate amount in respect of Coupons which have been paid; 

	
 
	
(b)
	
the serial numbers of those Notes in definitive form (other than serial numbers of Coupons);

	
 
	
(c)
	
the total number by maturity date of those Coupons;

	
 
	
(d)
	
the aggregate principal amounts of Notes (if any) which have been purchased by or on behalf of the Issuer, the Guarantor or any of its/the Guarantor's other Subsidiaries and cancelled (subject to delivery of the Notes to the Fiscal Agent in accordance with clause 11.1 above) and the serial numbers of such Notes in definitive form and the total number by maturity date of the Coupons attached to or exchanged or surrendered with the purchased Notes,

	
 
	
(e)
	
the aggregate principal amounts of Notes and the aggregate amounts in respect of Coupons which have been surrendered or exchanged and replaced and the serial numbers of those Notes in definitive form and the total number by maturity date of those Coupons surrendered therewith and 

	
 
	
(f)
	
the total number by maturity date of unmatured Coupons missing from Notes which have been redeemed or surrendered and replaced and the serial numbers of the Notes in definitive form to which the missing unmatured Coupons appertained.

	
14.
	
Copies of Documents Available for Inspection

	
14.1
	
The Guarantee shall be deposited with the Fiscal Agent and shall be held in safe custody by the Fiscal Agent on behalf of the Noteholders and Couponholders.

	
14.2
	
The Paying Agents shall hold copies of all documents required to be so available by the Conditions or the rules of any relevant stock exchange (or any other relevant authority) and shall make such copies available for inspection by Noteholders at its specified office during normal business hours.  For this purpose, the Issuer and/or the Guarantor shall furnish each Paying Agent with sufficient copies of each of the relevant documents.

	
15.
	
Commissions and Expenses

	
15.1
	
The Issuer or, failing the Issuer, the Guarantor shall pay to the Fiscal Agent such fees and commissions in respect of the services of the Paying Agents under this Agreement as shall be agreed between the Issuer, the Guarantor and the Fiscal Agent.  The Issuer and the Guarantor shall not be concerned with the apportionment of such fees and commissions among the Paying Agents.

	
15.2
	
The Issuer (and failing the Issuer, the Guarantor) shall pay to the Fiscal Agent an amount equal to any value added tax which may be payable in respect of the fees and commissions together with all reasonable expenses incurred by the Paying Agents in connection with their services under this Agreement.

	
15.3
	
The Fiscal Agent shall arrange for the payment of the fees and commissions due to the other Agents and arrange for the reimbursement of their expenses promptly after the receipt of the relevant moneys from the Issuer or the Guarantor (as the case may be).  Neither the Issuer nor the Guarantor shall be responsible for any payment or reimbursement by the Fiscal Agent to the other Paying Agents.

 

	
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15.4
	
The fees, commissions and expenses payable to the Fiscal Agent for services rendered and the performance of its obligations under this Agreement shall not be abated by any remuneration or other amounts or profits receivable by the Agent (or to its knowledge by any of its associates) in connection with any transaction effected by the Fiscal Agent with or for the Issuer.

	
16.
	
Indemnity

	
16.1
	
The Issuer shall indemnify (and failing the Issuer so indemnifying, the Guarantor agrees to indemnify) each of the Paying Agents against any losses, liabilities, costs, claims, actions, demands or expenses (together, Losses) (including, but not limited to, all reasonable costs, legal fees, charges and expenses (together, Expenses) paid or incurred in defending or disputing any Losses) which it may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement except for any Losses or Expenses resulting from its own negligence, wilful default or fraud or that of its directors, officers or employees or the breach by it of the terms of this Agreement.

	
16.2
	
The Paying Agents shall indemnify each of the Issuer and the Guarantor against any Losses (including Expenses) paid or incurred in defending or disputing any Losses which it may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement to the extent that any Losses or Expenses result directly from its own negligence, wilful default or fraud or that of its directors, officers or employees or the breach by it of the terms of this Agreement.

	
16.3
	
The Fiscal Agent will only be liable to the Issuer or the Guarantor for losses, liabilities, costs, expenses and demands arising directly from the performance of its obligations under this Agreement suffered by or occasioned to the Issuer (Liabilities) to the extent that the Fiscal Agent has been negligent, fraudulent or in wilful default in respect of its obligations under this Agreement. The Fiscal Agent shall not otherwise be liable or responsible for any Liabilities or inconvenience which may result from anything done or omitted to be done by it in connection with this Agreement. For the avoidance of doubt the failure of the Fiscal Agent to make a claim for payment of interest and principal on the Issuer, or to inform any other paying agent or clearing system of a failure on the part of the Issuer to meet any such claim or to make a payment by the stipulated date, shall not be deemed to constitute negligence, fraud or wilful default on the part of the Fiscal Agent.

	
16.4
	
The indemnities set out in this clause 16 shall survive any termination or expiry of this Agreement.

	
16.5
	
Liabilities arising under clause 16.3 shall be limited to the amount of the Issuer’s and/or the Guarantor’s actual loss. Such actual loss shall be determined (i) as at the date of default of the Fiscal Agent or, if later, the date on which the loss arises as a result of such default and (ii) without reference to any special conditions or circumstances known to the Fiscal Agent at the time of entering into the Agreement, or at the time of accepting any relevant instructions, which increase the amount of the loss. Under no circumstances will the Paying Agents be liable to the Issuer, the Guarantor or any other party to this Agreement for any special, punitive, indirect or consequential loss or damage of any kind whatsoever (including, without limitation, loss of profit), whether or not foreseeable, even if advised of the possibility of such loss or damage.

	
16.6
	
The liability of the Fiscal Agent under clause 16.3 will not extend to any Liabilities arising through any acts, events or circumstances not reasonably within its control, or resulting from the general risks of investment in or the holding of assets in any jurisdiction, including, but not limited to, Liabilities arising from: nationalisation, expropriation or other governmental actions; any law, order or regulation of a governmental, supranational or regulatory body; regulation of the banking or securities industry including changes in market rules or practice, currency restrictions, devaluations or fluctuations; market conditions affecting the execution or settlement of transactions or the value of assets; breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; and strikes or industrial action.

 

	
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17.
	
Repayment by Fiscal Agent

Sums paid by or by arrangement with the Issuer or the Guarantor to the Fiscal Agent pursuant to the terms of this Agreement shall not be required to be repaid to the Issuer or as the case may be, the Guarantor unless and until any Note or Coupon becomes void under the provisions of Condition 9 (Prescription) but in that event the Fiscal Agent shall forthwith repay to the Issuer or, as the case may be, the Guarantor sums equivalent to the amounts paid by the Issuer or, as the case may be, the Guarantor to the Fiscal Agent and not disbursed by virtue of the Notes becoming void.

	
18.
	
Conditions of Appointment

	
18.1
	
Save as provided in clause 18.3, the Fiscal Agent shall be entitled to deal with money paid to it by the Issuer or the Guarantor for the purposes of this Agreement in the same manner as other money paid to a bank by its customers and shall not be liable to account to the Issuer or the Guarantor for any interest or other amounts in respect of such money.  No money held by any Paying Agent need be segregated except as required by law.

	
18.2
	
In acting under this Agreement and in connection with the Notes and the Coupons the Paying Agents shall act solely as agents of the Issuer and the Guarantor and will not assume any obligations towards or relationship of agency or trust for or with any of the Noteholders or the Couponholders.

	
18.3
	
No Paying Agent shall exercise any right of set-off or lien against the Issuer, the Guarantor or any holders of Notes or Coupons in respect of any moneys payable to or by it under the terms of this Agreement.

	
18.4
	
Except as otherwise required by law, each of the Paying Agents shall be entitled to treat the holder of any Note or Coupon as the absolute owner for all purposes (whether or not any payment in respect of the relevant Note or Coupon shall be overdue and notwithstanding any notice of ownership or writing on the Note or Coupon or any notice of previous loss or theft of the Note or Coupon) and shall not be required to obtain any proof thereof as to the identity of such bearer.

	
18.5
	
The Paying Agents shall be obliged to perform such duties and only such duties as are set out in this Agreement and the Notes and no implied duties or obligations (including without limitation duties or obligations of a fiduciary or equitable nature) shall be read into this Agreement or the Notes against the Paying Agents other than the duty to act honestly and in good faith.

	
18.6
	
Each of the Paying Agents may consult with any expert or legal, financial and other professional advisers and the opinion of such advisers shall be full and complete protection in respect of any action taken, omitted or suffered under this Agreement in good faith and in accordance with the opinion of such advisers.

	
18.7
	
Each of the Paying Agents shall be protected and shall incur no liability for or in respect of any action taken, omitted or suffered in reliance upon any instruction, request or order from the Issuer or the Guarantor or any document which it reasonably believes to be genuine and to have been delivered, signed or sent by the proper party or parties or upon written instructions from the Issuer or the Guarantor.

	
18.8
	
Any of the Paying Agents, their officers, directors or employees may become the owner of, or acquire any interest in, Notes or Coupons with the same rights that it or he would have if the Paying Agent concerned were not appointed under this Agreement, and may engage or be interested in any financial or other transaction with the Issuer or the Guarantor, and may act on, or as depositary, trustee or agent for, any committee or body of holders of the Notes or Coupons or other obligations of the Issuer or the Guarantor, as freely as if such Paying Agent were not appointed under this Agreement, without regard to the interests of the Issuer or the Guarantor and shall be entitled to retain and shall not in any way be liable to account for any profit made or share of brokerage or commission or remuneration or other amount or benefit received thereby or in connection therewith.

 

	
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18.9
	
None of the Paying Agents shall be under any obligation to take any action under this Agreement (i) which may be illegal or contrary to applicable law or regulation, or the rules, operating procedures or market practice of any relevant stock exchange or other market or clearing system or (ii) which it expects will result in any expense, loss, charge or liability accruing to it, the payment of which or adequate indemnity against which within a reasonable time is not, in its opinion, assured to it.

	
18.10
	
None of the Agents shall have any obligation or duty (i) to monitor or inquire as to the performance of the Issuer of its obligations under the Notes, this Agreement or any other relevant documents or (ii) to determine or take any steps to ascertain whether any relevant event under the Notes has occurred.

	
18.11
	
Each party to this Agreement shall, within ten business days of a written request by another party, supply to that other party such forms, documentation and other information relating to it, its operations, or the Notes as that other party reasonably requests for the purposes of that other party's compliance with Applicable Law and shall notify the relevant other party reasonably promptly in the event that it becomes aware that any of the forms, documentation or other information provided by such party is (or becomes) inaccurate in any material respect; provided, however, that no party shall be required to provide any forms, documentation or other information pursuant to this clause 18.11 to the extent that: (i) any such form, documentation or other information (or the information required to be provided on such form or documentation) is not reasonably available to such party and cannot be obtained by such party using reasonable efforts; or (ii) doing so would or might in the reasonable opinion of such party constitute a breach of any: (a) Applicable Law; (b) fiduciary duty; or (c) duty of confidentiality. For the purposes of this clause 18.11, Applicable Law shall be deemed to include (i) any rule or practice of any Authority by which any party to this Agreement is bound or with which it is accustomed to comply; (ii) any agreement between any Authorities; and (iii) any agreement between any Authority and any party to this Agreement that is customarily entered into by institutions of a similar nature. Applicable Law and Authority shall have the meanings set out in clause 4.5 above.

	
18.12
	
Nothing in this Agreement shall require the Fiscal Agent to assume an obligation of the Issuer arising under any provision of the listing, prospectus, disclosure or transparency rules (or equivalent rules of any other competent authority besides the FCA or PRA).

	
18.13
	
The Fiscal Agent is authorised by the PRA and regulated by the FCA and PRA. Nothing in this Agreement shall require the Fiscal Agent to carry on an activity of the kind specified by any provision of Part II (other than article 5 (accepting deposits)) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, or to lend money to the Issuer.

	
18.14
	
The Fiscal Agent shall not be responsible to anyone with respect to the legality of this Agreement or the validity or legality of the Notes or Coupons.

	
18.15
	
In the case of any default by the Issuer or the Guarantor, the Fiscal Agent shall have no duty or responsibility in the performance of the Issuer’s obligations under the Conditions.

	
19.
	
Communication with Paying Agents

A copy of all communications relating to the subject matter of this Agreement between the Issuer or the Guarantor and any of the Paying Agents other than the Fiscal Agent shall be sent to the Fiscal Agent.

 

	
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20.
	
Termination of Appointment

	
20.1
	
The Issuer and the Guarantor may terminate the appointment of any Paying Agent at any time and/or appoint additional or other Paying Agents by giving to the Paying Agent whose appointment is concerned and, where appropriate, the Fiscal Agent at least 45 days' prior written notice to that effect, provided that, so long as any of the Notes is outstanding:

	
 
	
(a)
	
in the case of a Paying Agent, the notice shall not expire less than 45 days before any due date for the payment of interest; and

	
 
	
(b)
	
notice shall be given under Condition 12 (Notices) at least 30 days before the removal or appointment of a Paying Agent.

	
20.2
	
The termination of the appointment of a Paying Agent under this Agreement shall not entitle the Paying Agent to any amount by way of compensation but shall be without prejudice to any amount then accrued due.

	
20.3
	
All or any of the Paying Agents may resign their respective appointments under this Agreement at any time by giving to the Issuer, the Guarantor and, where appropriate, the Fiscal Agent at least 90 days' prior written notice to that effect provided that, in the case of a Paying Agent, so long as any of the Notes is outstanding and in definitive form, the notice shall not expire less than 45 days before any Interest Payment Date.  Following receipt of a notice of resignation from a Paying Agent, the Issuer shall promptly, and in any event not less than 30 days before the resignation takes effect, give notice of such resignation to the Noteholders under Condition 12 (Notices).  If the Fiscal Agent resigns or is removed pursuant to clauses 20.1 or 1.1 above or in accordance with this clause 20.3, the Issuer and the Guarantor shall promptly and in any event within 30 days appoint a successor (being a leading bank acting through its office in London).  If the Issuer and the Guarantor fail to appoint a successor within such period, the Fiscal Agent shall be entitled, on behalf of the Issuer and the Guarantor, to appoint in its place as a successor Fiscal Agent a reputable financial institution of good standing which the Issuer and the Guarantor shall approve.

	
20.4
	
Notwithstanding the provisions of clauses 20.1, 20.2 and 20.3, so long as any of the Notes is outstanding, the termination of the appointment of a Paying Agent (whether by the Issuer and the Guarantor or by the resignation of the Paying Agent) shall not be effective unless upon the expiry of the relevant notice there is:

	
 
	
(a)
	
a Fiscal Agent; 

	
 
	
(b)
	
a Paying Agent (which may be the Fiscal Agent) having its specified office in the place (if any) required by the rules and regulations of the relevant Stock Exchange or any other relevant authority; and

	
 
	
(c)
	
a Paying Agent (which may be the Fiscal Agent) in a jurisdiction within Europe.

	
20.5
	
Any successor Paying Agent shall execute and deliver to its predecessor, the Issuer, the Guarantor and, where appropriate, the Fiscal Agent an instrument accepting its appointment under this Agreement, and the successor Paying Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of the predecessor with like effect as if originally named as a Paying Agent.

 

	
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20.6
	
If the appointment of a Paying Agent under this Agreement is terminated (whether by the Issuer and the Guarantor or by the resignation of the relevant Paying Agent), the Paying Agent shall on the date on which the termination takes effect deliver to its successor Paying Agent (or, if none, the Fiscal Agent) all Notes and Coupons surrendered to it but not yet destroyed and all records concerning the Notes and Coupons maintained by it (except such documents and records as it is obliged by law or regulation to retain or not to release) and pay to its successor Paying Agent (or, if none, to the Fiscal Agent) the amounts (if any) held by it in respect of Notes or Coupons which have become due and payable but which have not been presented for payment, but shall have no other duties or responsibilities under this Agreement.

	
20.7
	
If the Fiscal Agent or any of the other Paying Agents shall change its specified office, it shall give to the Issuer, the Guarantor and, where appropriate, the Fiscal Agent not less than 45 days' prior written notice to that effect giving the address of the new specified office. As soon as practicable thereafter and in any event at least 30 days before the change, the Fiscal Agent shall, at the request of the Issuer, give to the Noteholders on behalf of and at the expense of the Issuer (failing which, the Guarantor) notice of the change and the address of the new specified office under Condition 12 (Notices). 

	
20.8
	
A corporation into which any Paying Agent for the time being may be merged or converted or a corporation with which the Paying Agent may be consolidated or a corporation resulting from a merger, conversion or consolidation to which the Paying Agent shall be a party shall, to the extent permitted by applicable law, be the successor Paying Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement.  Notice of any merger, conversion or consolidation shall forthwith be given to the Issuer, the Guarantor and, where appropriate, the Fiscal Agent.

	
21.
	
Meetings of Noteholders

	
21.1
	
The provisions of Schedule 6 shall apply to meetings of the Noteholders and shall have effect in the same manner as if set out in this Agreement provided that, so long as any of the Notes are represented by a Global Note, the expression Noteholders shall include the persons for the time being shown in the records of Euroclear and/or Clearstream, Luxembourg (other than Clearstream, Luxembourg, if Clearstream, Luxembourg shall be an accountholder of Euroclear, and Euroclear, if Euroclear shall be an accountholder of Clearstream, Luxembourg), as the holders of a particular principal amount of such Notes (each an Accountholder) (in which regard a certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the principal amount of such Notes standing to the account of any person shall be conclusive and binding save in the case of manifest error) for all purposes other than with respect to the payment of principals and interest on such Notes, the right to which shall be vested as against the Issuer solely in the bearer of each Global Note in accordance with and subject to its terms, and the expressions holder and holders shall be construed accordingly and the expression Notes shall mean units of EUR 500,000,000 principal amount of Notes.

	
22.
	
Notices

	
22.1
	
All notices or other communications under or in connection with this Agreement shall be in English and shall be delivered in person, sent by first class pre‐paid post or by facsimile in accordance with the address and facsimile details below.

	
22.2
	
Any notice shall, in the case of a letter, be effective only on actual delivery, and, in the case of a facsimile, when a transmission report showing the successful transmission of the facsimile is received by the sender.  However, a notice given in accordance with the above but received on a day which is not a business day or after 5.00pm in the place of receipt will only be deemed to be given on the next business day.

 

	
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22.3
	
The address and facsimile number of each party for all notices under or in connection with this Agreement are:

 

	
(a)    in the case of the Issuer:
	
Autoliv, Inc.
	
 

	
 
	
World Trade Center 

Klarabergsviadukten 70, Sec C 

107 24 Stockholm 

Sweden
	
 

	
 
	
 
	
 

	
 
	
Facsimile No:
	
+46 8 587 206 33

	
 
	
Email: 
	
Par-Ola.Wirenlind@autoliv.com

	
 
	
(Attention:
	
Par-Ola Wirenlind (Treasurer))

	
 
	
 
	
 

	
(b)    in the case of the Guarantor:
	
Autoliv ASP, Inc.
	
 

	
 
	
World Trade Center 

Klarabergsviadukten 70, Sec E 

107 24 Stockholm 

Sweden
	
 

	
 
	
 
	
 

	
 
	
Facsimile No:
	
+46 8 587 206 33

	
 
	
Email: 
	
Par-Ola.Wirenlind@autoliv.com

	
 
	
(Attention:
	
Par-Ola Wirenlind (Treasurer))

	
 
	
 
	
 

	
 
	
 
	
 

	
(c)    in the case of the Fiscal Agent:
	
HSBC Bank plc
	
 

	
 
	
8 Canada Square

London 

E14 5HQ

 
	
 

	
 
	
Facsimile No:
	
+44 (0)345 587 0429

	
 
	
Email:
	
ctla.payingagency@hsbc.com

	
 
	
(Attention:
	
The Senior Manager, CTLA Client Services, Corporate Trust and Loan Agency)

 

or to such other address or facsimile number or marked for the attention of such other person or department as may from time to time be notified by any party to the others by not less than five days' written notice in accordance with the provisions of this clause.  In this clause 22, business day in relation to any place means a day on which commercial banks are open for general business in the that place.

	
23.
	
Communications

	
23.1
	
In no event shall the Agents be liable for any Losses arising in regards to receiving or transmitting any data from the Issuer, the Guarantor, any Authorised Person or any party to the transaction via any non-secure method of transmission or communication, such as, but without limitation, by facsimile or email. 

 

	
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23.2
	
The Issuer and the Guarantor accept that some methods of communication are not secure and the Agents shall incur no liability for receiving Instructions via any such non-secure method.  The Agents are authorised to comply with and rely upon any such notice, Instructions or other communications believed to have been sent or given by an Authorised Person or an appropriate party to the transaction (or authorised representative thereof).  The Issuer, the Guarantor and each authorised officer of the Issuer and the Guarantor shall use all reasonable endeavours to ensure that Instructions transmitted to the Agents pursuant to this Agreement are complete and correct.  Any Instructions shall be conclusively deemed to be valid Instructions from the Issuer, the Guarantor or an authorised officer of the Issuer or the Guarantor to the Agents for the purposes of this Agreement.

	
24.
	
Amendments

The Fiscal Agent, the Issuer and the Guarantor may agree, without the consent of any Noteholder, to:

	
 
	
(a)
	
any modification of the Notes, the Coupons or of this Agreement which is of a formal, minor or technical nature or is made to correct a manifest error or to comply with mandatory provisions of the law; or

	
 
	
(b)
	
any modification (except a Basic Terms Modification) of the Notes, the Coupons or this Agreement which is not materially prejudicial to the interests of the Noteholders.

Any such modification shall be binding on the Noteholders and, unless the Fiscal Agent agrees otherwise, any modification shall be notified by the Issuer to the Noteholders as soon as practicable thereafter in accordance with Condition 12 (Notices). 

	
25.
	
Contracts (Rights of Third Parties) Act 1999

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

	
26.
	
Taxes and Stamp Duties

The Issuer or, failing the Issuer, the Guarantor agrees to pay any and all stamp and other documentary taxes or duties which may be payable in connection with the execution, delivery, performance and enforcement of this Agreement by the Paying Agent.

	
27.
	
General

	
27.1
	
This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

	
27.2
	
If any provision in or obligation under this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation, under this Agreement, and (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Agreement.

	
28.
	
Governing Law and Submission to Jurisdiction

	
28.1
	
This Agreement and any non-contractual obligations arising out of or in connection with this Agreement are governed by, and construed in accordance with, English law.

 

	
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28.2
	
Subject to clause 28.4 below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement, including any dispute as to its existence, validity, interpretation, performance, breach or termination or the consequences of its nullity and any dispute relating to any non-contractual obligations arising out of or in connection with it (a Dispute) and each party submits to the exclusive jurisdiction of the English courts. 

	
28.3
	
For the purposes of clauses 28.2 and 28.4, the Issuer and the Guarantor each waives any objection to the English courts on the grounds that they are an inconvenient or inappropriate forum to settle any Dispute.

	
28.4
	
To the extent allowed by law, the Agents may, in respect of any Dispute or Disputes, take (i) proceedings in any other court with jurisdiction; and (ii) concurrent proceedings in any number of jurisdictions. 

	
28.5
	
Each of the Issuer and the Guarantor irrevocably appoints Airbags International Limited at Viking Way, Congleton, Cheshire, CW12 1TT as its agent under this Agreement for service of process in any proceedings before the English courts in relation to any Dispute and agrees that, in the event of Airbags International Limited being unable or unwilling for any reason so to act, it will immediately appoint another person as its agent for service of process in England in respect of any Dispute.  The Issuer and the Guarantor each agrees that failure by a process agent to notify it of any process will not invalidate service.  Nothing in this clause shall affect the right to serve process in any other manner permitted by law.

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

 

	
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Schedule 1

Forms of Global Notes

Part 1

Form of the Temporary Global Note 

AUTOLIV, INC.

TEMPORARY GLOBAL NOTE

 

EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023

 

unconditionally and irrevocably guaranteed by

AUTOLIV ASP, INC.

This temporary Global Note is issued in respect of the EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes) of Autoliv, Inc. (the Issuer).  The Notes are issued subject to and with the benefit of an Agency Agreement (the Agency Agreement) dated 26 June 2018, between, among others, the Issuer, Autoliv ASP, Inc. (the Guarantor) and HSBC Bank plc as Fiscal Agent (the Fiscal Agent) and the Conditions of the Notes (the Conditions) set out in Part 2 of Schedule 2 to the Agency Agreement. Words and expressions defined in the Conditions shall have the same meanings when used in this temporary Global Note.  

Payments in respect of the Notes are unconditionally and irrevocably guaranteed by the Guarantor as provided in a Guarantee dated 26 June 2018 entered into by the Guarantor.

	
1.
	
Promise to Pay

Subject as provided in this temporary Global Note, the Issuer, for value received, promises to pay the bearer of this temporary Global Note the sum of EUR 500,000,000 (five hundred million Euros) or such lesser sum as is equal to the principal amount of the Notes represented by this temporary Global Note on 26 June 2023 or on such earlier date as the principal or other amounts in respect of this temporary Global Note may become due under the Conditions and to pay interest on (and which is calculated by reference to) the principal sum for the time being outstanding of this temporary Global Note at the rate of 0.750 per cent. per annum from (and including) 26 June 2018 payable annually in arrear on 26 June in each year until payment of the principal sum has been made or duly provided for in full together with any premium and other amounts as may be payable, all subject to and under the Conditions.

The principal amount of Notes represented by this temporary Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear Bank S.A./N.V. and Clearstream Banking S.A. (each a relevant Clearing System and together the relevant Clearing Systems).  The records of the relevant Clearing Systems (which expression in this temporary Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the principal amount of Notes represented by this temporary Global Note and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the nominal amount of Notes represented by this temporary Global Note at any time shall, save in the case of manifest error, be conclusive evidence of the records of the relevant Clearing System at that time.

 

	
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2.
	
Exchange for Permanent Global Note and Purchases

The permanent Global Note to be issued on exchange for interests in this temporary Global Note will be substantially in the form set out in Part 2 of Schedule 1 to the Agency Agreement.

Subject as provided below, the permanent Global Note will only have an entry made to represent definitive Notes after the date which is 40 days after the closing date for the Notes (the Exchange Date).

Interests in this temporary Global Note may be exchanged for interests recorded in the records of the relevant Clearing Systems in a duly executed and authenticated permanent Global Note without charge, in full or partial exchange for this temporary Global Note, in order that the permanent Global Note represents an aggregate principal amount of Notes equal to the principal amount of this temporary Global Note submitted for exchange.  Notwithstanding the foregoing, no such exchange shall be made unless there shall have been presented to the Fiscal Agent or such other person as the Fiscal Agent may direct (the Exchange Agent) by a relevant Clearing System  a certificate to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular principal amount of the Notes (as shown by its records) a certificate of non-US beneficial ownership from such person in the form required by it.

Notwithstanding the foregoing, where this temporary Global Note has been exchanged in part for the permanent Global Note pursuant to the foregoing and definitive Notes have been issued in exchange for the total amount of Notes represented by the permanent Global Note pursuant to its terms, then interests in this temporary Global Note will no longer be exchangeable for interests in the permanent Global Note but will be exchangeable, in full or partial exchange, for duly executed and authenticated definitive Notes, without charge, in the denomination of EUR100,000 and integral multiples of EUR1,000 in excess thereof up to and including EUR199,000 each with interest coupons attached, such definitive Notes to be substantially in the form set out in Part 1 of Schedule 2 to the Agency Agreement.  Notwithstanding the foregoing, definitive Notes shall not be so issued and delivered unless there shall have been presented to the Exchange Agent by Euroclear or Clearstream, Luxembourg a certificate to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular principal amount of Notes (as shown by its records) a certificate of non-US beneficial ownership from such person in the form required by it.

Any person who would, but for the provisions of this temporary Global Note and of the Agency Agreement, otherwise be entitled to receive either (a) an interest in the permanent Global Note or (b) definitive Notes shall not be entitled to require the exchange of an appropriate part of this temporary Global Note for an interest in the permanent Global Note or definitive Notes unless and until he shall have delivered or caused to be delivered to Euroclear or Clearstream, Luxembourg a certificate of non-US beneficial ownership in the form required by it.

This temporary Global Note may be exchanged by the bearer hereof on any day (other than a Saturday or Sunday) on which banks are open for general business in the United Kingdom.  The aggregate principal amount of interests in the permanent Global Note recorded in the records of the relevant Clearing Systems or, as the case may be, definitive Notes issued upon an exchange of this temporary Global Note will, subject to the terms hereof, be equal to the aggregate principal amount of this temporary Global Note submitted by the bearer for exchange (to the extent that such principal amount does not exceed the aggregate principal amount of this temporary Global Note).

Upon (a) any exchange of a part of this temporary Global Note for an interest in the permanent Global Note or for a definitive Note, (b) receipt of instructions from Euroclear or Clearstream, Luxembourg that, following the purchase by or on behalf of the Issuer, the Guarantor or any of the Issuer’s other subsidiaries of a part of this temporary Global Note, part is to be cancelled or (c) any redemption of a part of this temporary Global Note, the Issuer shall procure that the portion of the principal amount of this temporary Global Note so exchanged, cancelled or redeemed shall be entered pro rata in the records of the relevant Clearing Systems.  On an exchange in whole of this temporary Global Note, this temporary Global Note shall be surrendered to or to the order of the Fiscal Agent.

 

	
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3.
	
Benefits

Until the entire principal amount of this temporary Global Note has been extinguished in exchange for the permanent Global Note and/or definitive Notes, the bearer of this temporary Global Note shall (subject as provided below) in all respects be entitled to the same benefits as if he were the bearer of the definitive Notes referred to above, except that the bearer of this temporary Global Note shall only be entitled to receive any payment on this temporary Global Note on presentation of certificates as provided below.  Accordingly, except as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent may (subject as provided below) deem and treat the holder of this temporary Global Note as the absolute owner of this temporary Global Note for all purposes.  All payments of any amounts payable and paid to such holder shall, to the extent of the sums so paid, discharge the liability for the moneys payable on this temporary Global Note and on the relevant definitive Notes and/or Coupons.

	
4.
	
Payments

Payments due in respect of Notes for the time being represented by this temporary Global Note shall be made to the bearer of this temporary Global Note only upon presentation by Euroclear or, as the case may be, Clearstream, Luxembourg to the Fiscal Agent at its specified office of a certificate to the effect that it has received from or in respect of a person entitled to a particular principal  amount of the Notes (as shown on its records) a certificate of non-US beneficial ownership in the form required by it. Each payment so made will discharge the Issuer's obligations in respect thereof.

The bearer of this temporary Global Note will not be entitled to receive any payment of interest due on or after the Exchange Date unless, upon due certification, exchange of this temporary Global Note is improperly withheld or refused.

Upon any payment in respect of the Notes represented by this temporary Global Note, the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems.  In the case of any payment of principal the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems and, upon such entry being made, the principal amount of the Notes recorded in the records of the relevant Clearing Systems and represented by this temporary Global Note shall be reduced by the amount so paid. Any failure to make such entries shall not affect the discharge referred to in the first paragraph above.

	
5.
	
Accountholders

For so long as any of the Notes is represented by this temporary Global Note or by this temporary Global Note and the permanent Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, each person (other than Clearstream, Luxembourg, if Clearstream, Luxembourg shall be an accountholder of Euroclear, and Euroclear, if Euroclear shall be an accountholder of Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear and/or Clearstream, Luxembourg as the holder of a particular principal amount of Notes (each an Accountholder) (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the principal amount of such Notes standing to the account of any person shall, save in the case of manifest error, be conclusive and binding for all purposes) shall be treated as the holder of that principal amount for all purposes (including but not limited to for the purposes of any quorum requirements of, or the right to demand a poll or, meetings of the Noteholders and giving notice to the Issuer pursuant to Condition 10 (Events of Default) and Condition 7.5 (Redemption at the Option of the Holders) other than with respect to the payment of principal, premium and interest on the Notes, the right to which shall be vested, as against the Issuer, solely in the bearer of this temporary Global Note in accordance with and subject to its terms.  Each Accountholder must look solely to Euroclear or Clearstream, Luxembourg, as the case may be, for its share of each payment made to the bearer of this temporary Global Note.

 

	
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In the event that this Global Note (or any part of it) has become due and repayable in accordance with the Conditions or that the maturity date of the Notes has occurred and, in either case, payment in full of the amount due has not been made to the bearer in accordance with the provisions set out above, then from 8.00 p.m. (London time) on such day each Accountholder will become entitled to proceed directly against the Issuer on, and subject to, the terms of the Deed of Covenant executed by the Issuer on 26 June 2018 in respect of the Notes and the bearer will have no further rights under this Global Note (but without prejudice to the rights which any person may have under the Deed of Covenant).

	
6.
	
Notices

For so long as all of the Notes are represented by this temporary Global Note or by this temporary Global Note and the permanent Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, notices to Noteholders may be given by delivery of the relevant notice to Euroclear and/or Clearstream, Luxembourg (as the case may be) for communication to the relevant Accountholders rather than by publication as required by Condition 12 (Notices). Any such notice shall be deemed to have been given to the Noteholders on the day after the day on which such notice is delivered to Euroclear and/or Clearstream, Luxembourg (as the case may be) as aforesaid.

Whilst any of the Notes held by a Noteholder are represented by a Global Note, notices to be given by such Noteholder may be given by such Noteholder (where applicable) through the applicable clearing system's operational procedures approved for this purpose and otherwise in such manner as the Fiscal Agent and the applicable clearing system approve for this purpose.

	
7.
	
Prescription

Claims against the Issuer and the Guarantor in respect of principal or premium and interest on the Notes represented by this temporary Global Note will be prescribed after 10 years (in the case of principal) and five years (in the case of interest) from the Relevant Date (as defined in Condition 8 (Taxation)).

	
8.
	
Put Option

For so long as all of the Notes are represented by this temporary Global Note or by this temporary Global Note and the permanent Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, the option of the Noteholders provided for in Condition 7.5 (Redemption at the Option of the Holders) may be exercised by an Accountholder giving notice to the Fiscal Agent in accordance with the standard procedure of Euroclear and/or Clearstream, Luxembourg (as the case may be) (which may include notice being given on his instruction by Euroclear or Clearstream, Luxembourg or any common safe-keeper for them to the Fiscal Agent by electronic means) and in a form acceptable to Euroclear and Clearstream, Luxembourg of the principal amount of the Notes in respect of which such option is exercised and the Issuer shall procure that the portion of the principal amount of this temporary Global Note so redeemed shall be entered in the records of the relevant Clearing System.

	
9.
	
Redemption at the Option of the Issuer

For so long as all of the Notes are represented by this temporary Global Note or by this temporary Global Note and the permanent Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, no selection of Notes to be redeemed will be required under Condition 7.4 (Provisions relating to Partial Redemption) in the event that the Issuer exercises its option pursuant to Condition 7.3 (Redemption at the Option of the Issuer) in respect of less than the aggregate principal amount of the Notes outstanding at such time.  In such event, selection of the interests in this temporary Global Note subject to the exercise of this option will be made in accordance with the standard rules and procedures of Euroclear and/or Clearstream, Luxembourg (to be reflected in the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion).

 

	
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10.
	
Euroclear and Clearstream, Luxembourg

Notes represented by this temporary Global Note are transferable in accordance with the rules and procedures of Euroclear and Clearstream, Luxembourg, as appropriate.

	
11.
	
Authentication and Effectuation

This temporary Global Note shall not become valid or enforceable for any purpose unless and until it has been authenticated by or on behalf of the Fiscal Agent and effectuated by the entity appointed as common safe-keeper by the relevant Clearing Systems.

The Notes are intended to be held in a manner which would allow Eurosytem eligibility and as such this Global Note is intended upon issue to be deposited with one of Euroclear or Clearstream, Luxembourg as common safekeeper.  This does not necessarily mean that the Notes represented by the Global Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra day credit operations by the Eurosystem either upon issue or at any or all times during their life, such recognition depending upon the European Central Bank being satisfied that Eurosystem eligibility criteria have been met).

	
12.
	
Contracts (Rights of third Parties) Act 1999

No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this temporary Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

	
13.
	
Severability

If any provision in or obligation under this temporary Global Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this temporary Global Note, or (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this temporary Global Note.

	
14.
	
Governing Law

This temporary Global Note and any non-contractual obligations arising out of or in connection with it are governed by, and construed in accordance with, English law.

IN WITNESS whereof the Issuer has caused this temporary Global Note to be signed by a person duly authorised on its behalf.

AUTOLIV, INC.

By: 

 

(Duly authorised)

Issued in London on 26 June 2018.

 

 

	
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CERTIFICATE OF AUTHENTICATION

This is the temporary Global Note 

described in the Agency Agreement

 

By or on behalf of

HSBC Bank plc as Fiscal Agent

(without recourse, warranty or liability)

CERTIFICATE OF EFFECTUATION

Effectuated without recourse,

warranty or liability by

 

as common safe-keeper

By: 

 

 

	
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Part 2

Form of the Permanent Global Note

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

AUTOLIV, INC.

PERMANENT GLOBAL NOTE

EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023

 

unconditionally and irrevocably guaranteed by

AUTOLIV ASP, INC.

This permanent Global Note is issued in respect of the EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes) of Autoliv, Inc. (the Issuer). The Notes are initially represented by a temporary Global Note interests in which will be exchanged in accordance with the terms of the temporary Global Note for interests in this permanent Global Note and, if applicable, definitive Notes.  The Notes are issued subject to and with the benefit of an Agency Agreement (the Agency Agreement) dated 26 June 2018, between, among others, the Issuer, Autoliv ASP, Inc. (the Guarantor) and HSBC Bank plc as Fiscal Agent (the Fiscal Agent) and the Conditions of the Notes (the Conditions) set out in Part 2 of Schedule 2 to the Agency Agreement. Words and expressions defined in the Conditions shall have the same meanings when used in this permanent Global Note.    

Payments in respect of the Notes are unconditionally and irrevocably guaranteed by the Guarantor as provided in a Guarantee dated 26 June 2018 entered into by the Guarantor. 

	
1.
	
Promise to Pay

Subject as provided in this permanent Global Note, the Issuer, for value received, promises to pay the bearer of this permanent Global Note the sum of EUR 500,000,000 (five hundred million Euros) or such lesser sum as is equal to the principal amount of the Notes represented by this permanent Global Note or such other amounts as are expressed to be payable in respect of the Notes represented by this permanent Global Note on early redemption of the Notes on 26 June 2023 or on such earlier date as the principal or other amounts in respect of this permanent Global Note may become due under the Conditions and to pay interest on (and which is calculated by reference to) the principal sum for the time being outstanding of this permanent Global Note at the rate of 0.750 per cent. per annum payable annually in arrear on 26 June in each year until payment of the principal sum has been made or duly provided for in full together with any premium and other amounts as may be payable, all subject to and under the Conditions.

The principal amount of Notes represented by this permanent Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear Bank S.A./N.V. and Clearstream Banking S.A. (each a relevant Clearing System and together the relevant Clearing Systems).  The records of the relevant Clearing Systems (which expression in this permanent Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the principal  amount of Notes represented by this permanent Global Note and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the nominal amount of Notes represented by this permanent Global Note at any time shall, save in the case of manifest error, be conclusive evidence of the records of the relevant Clearing System at that time.

 

	
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2.
	
Exchange of Interests in the Temporary Global Note for Interests in this Permanent Global Note

Upon any exchange of an interest recorded in the records of the relevant Clearing Systems in the temporary Global Note representing the Notes for an interest recorded in the records of the relevant Clearing Systems in this permanent Global Note, the Issuer shall procure that details of such exchange shall be entered pro rata in the records of the relevant Clearing Systems.

	
3.
	
Exchange for Definitive Notes and Purchases

Upon the occurrence of an Exchange Event (as further described below), this permanent Global Note may be exchanged for duly executed and authenticated definitive Notes without charge and the Fiscal Agent or such other person as the Fiscal Agent may direct (the Exchange Agent) shall deliver, in full (but not in part) exchange for this permanent Global Note, an aggregate principal amount of duly executed and authenticated definitive Notes with Coupons attached equal to the total principal amount of this permanent Global Note.

An Exchange Event will occur if:

	
 
	
(a)
	
the Issuer has been notified that both Euroclear Bank S.A./N.V. (Euroclear) and Clearstream Banking S.A. (Clearstream, Luxembourg) have announced an intention permanently to cease business or have in fact done so and no successor clearing system is available; or

	
 
	
(b)
	
the Issuer has or will become subject to adverse tax consequences which would not be suffered were the Notes in definitive form.

The Issuer will promptly give notice to Noteholders if an Exchange Event occurs.  In the case of (a) above, the bearer of this permanent Global Note, acting on the instructions of one or more of the Accountholders (as defined below), may give notice to the Issuer and the Fiscal Agent requesting exchange and, in the case of (b) above, the Issuer may also give notice to the Fiscal Agent of its intention to exchange this permanent Global Note for definitive Notes. Any exchange shall occur no later than 45 days after the date of receipt of the first relevant notice by the Fiscal Agent. 

Exchanges will be made upon presentation of this permanent Global Note at the office of the Fiscal Agent on any day on which banks are open for general business in Luxembourg. In exchange for this permanent Global Note the Issuer will deliver, or procure the delivery of, an equal aggregate principal amount of definitive Notes (having attached to them all Coupons in respect of interest which has not already been paid on this permanent Global Note), security printed in accordance with any applicable legal and stock exchange requirements and in or substantially in the form set out in the Agency Agreement.  On exchange of this permanent Global Note, the Issuer will procure that it is cancelled and, if the holder so requests, returned to the holder together with any relevant definitive Notes.

The definitive Notes to be issued on exchange will be in bearer form in the denominations of EUR100,000 and integral multiples of EUR1,000 in excess thereof up to and including EUR199,000 each with interest coupons (Coupons) attached and will be substantially in the form set out in Part 1 of Schedule 2 to the Agency Agreement.

Upon (a) receipt of instructions from Euroclear and Clearstream, Luxembourg that, following the purchase by or on behalf of the Issuer or any of its subsidiaries of a part of this permanent Global Note, part is to be cancelled or (b) any redemption of a part of this permanent Global Note, the Issuer shall procure that the portion of the principal amount of this permanent Global Note so cancelled or redeemed shall be entered pro rata in the records of the relevant Clearing Systems.  On an exchange in whole of this permanent Global Note, this permanent Global Note shall be surrendered to or to the order of the Fiscal Agent.

 

	
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4.
	
Benefits

Until the entire principal amount of this permanent Global Note has been extinguished in exchange for definitive Notes or in any other manner envisaged by the Conditions, the bearer of this permanent Global Note shall (subject as provided below) in all respects be entitled to the same benefits as if he were the bearer of the definitive Notes referred to above.  Accordingly, except as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent may (subject as provided below) deem and treat the holder of this permanent Global Note as the absolute owner of this permanent Global Note for all purposes.  All payments of any amounts payable and paid to such holder shall, to the extent of the sums so paid, discharge the liability for the moneys payable on this permanent Global Note and on the relevant definitive Notes and/or Coupons.

	
5.
	
Payments

Payments due in respect of Notes for the time being represented by this permanent Global Note shall be made to the bearer of this permanent Global Note and each payment so made will discharge the Issuer's obligations in respect thereof.

Upon any payment in respect of the Notes represented by this permanent Global Note, the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems.  In the case of any payment of principal the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems and, upon any such entry being made, the principal amount of the Notes recorded in the records of the relevant Clearing Systems and represented by this permanent Global Note shall be reduced by the amount so paid. Any failure to make such entries shall not affect the discharge referred to in the previous paragraph.

	
6.
	
Accountholders

For so long as any of the Notes is represented by this permanent Global Note or by this permanent Global Note and the temporary Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, each person (other than Clearstream, Luxembourg, if Clearstream, Luxembourg shall be an accountholder of Euroclear, and Euroclear, if Euroclear shall be an accountholder of Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear and/or Clearstream, Luxembourg as the holder of a particular principal amount of Notes (each an Accountholder) (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the principal amount of such Notes standing to the account of any person shall, save in the case of manifest error, be conclusive and binding for all purposes) shall be treated as the holder of that principal amount for all purposes (including but not limited to for the purposes of any quorum requirements of, or the right to demand a poll or, meetings of the Noteholders and giving notice to the Issuer pursuant to Condition 10 (Events of Default) and Condition 7.5 (Redemption at the Option of the Holders) other than with respect to the payment of principal, premium and interest on the Notes, the right to which shall be vested, as against the Issuer, solely in the bearer of this permanent Global Note in accordance with and subject to its terms.  Each Accountholder must look solely to Euroclear or Clearstream, Luxembourg, as the case may be, for its share of each payment made to the bearer of this permanent Global Note.

In the event that (a) this Global Note (or any part of it) has become due and repayable in accordance with the Conditions or that the maturity date of the Notes has occurred and, in either case, payment in full of the amount due has not been made to the bearer in accordance with the provisions set out above, or (b) following an Exchange Event, this Global Note is not duly exchanged for definitive Notes by the day provided above, then from 8.00 p.m. (London time) on such day each Accountholder will become entitled to proceed directly against the Issuer on, and subject to, the terms of the Deed of Covenant executed by the Issuer on 26 June 2018 in respect of the Notes and the bearer will have no further rights under this Global Note (but without prejudice to the rights which any person may have under the Deed of Covenant).

 

	
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7.
	
Notices

For so long as all of the Notes are represented by this permanent Global Note or by this permanent Global Note and the temporary Global Note and such Global Note(s) are held on behalf of Euroclear and/or Clearstream, Luxembourg, notices to Noteholders may be given by delivery of the relevant notice to Euroclear and/or Clearstream, Luxembourg (as the case may be) for communication to the relevant Accountholders rather than by publication as required by Condition 12 (Notices). Any such notice shall be deemed to have been given to the Noteholders on the day after the day on which such notice is delivered to Euroclear and/or Clearstream, Luxembourg (as the case may be) as aforesaid.

Whilst any of the Notes held by a Noteholder are represented by a Global Note, notices to be given by such Noteholder may be given by such Noteholder (where applicable) through the applicable clearing system's operational procedures approved for this purpose and otherwise in such manner as the Fiscal Agent and the applicable clearing system approve for this purpose.

	
8.
	
Prescription

Claims against the Issuer and the Guarantor in respect of principal or premium and interest on the Notes represented by this permanent Global Note will be prescribed after 10 years (in the case of principal) and five years (in the case of interest) from the Relevant Date (as defined in Condition 8 (Taxation)).

	
9.
	
Put Option

For so long as all of the Notes are represented by this permanent Global Note or by this permanent Global Note and the temporary Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, the option of the Noteholders provided for in Condition 7.5 (Redemption at the Option of the Holders) may be exercised by an Accountholder giving notice to the Fiscal Agent in accordance with the standard procedures of Euroclear and/or Clearstream, Luxembourg (as the case may be) (which may include notice being given on his instructions by Euroclear or Clearstream, Luxembourg or any common safe-keeper for them to the Fiscal Agent by electronic means) and in a form acceptable to Euroclear and Clearstream, Luxembourg of the principal amount of the Notes in respect of which such option is exercised and the Issuer shall procure that the portion of the principal amount of this permanent Global Note so redeemed shall be entered in the records of the relevant Clearing System.

	
10.
	
Redemption at the Option of the Issuer

For so long as all of the Notes are represented by this permanent Global Note or by this permanent Global Note and the temporary Global Note and such Global Note(s) is/are held on behalf of Euroclear and/or Clearstream, Luxembourg, no selection of Notes to be redeemed will be required under Condition 7.4 (Provisions relating to Partial Redemption) in the event that the Issuer exercises its option pursuant to Condition 7.3 (Redemption at the Option of the Issuer) in respect of less than the aggregate principal amount of the Notes outstanding at such time.  In such event, selection of the interests in this permanent Global Note subject to the exercise of this option will be made in accordance with the standard rules and procedures of Euroclear and/or Clearstream, Luxembourg (to be reflected in the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion). 

	
11.
	
Euroclear and Clearstream, Luxembourg

Notes represented by this permanent Global Note are transferable in accordance with the rules and procedures of Euroclear and Clearstream, Luxembourg, as appropriate.  

	
12.
	
Authentication and Effectuation

This permanent Global Note shall not become valid or enforceable for any purpose unless and until it has been authenticated by or on behalf of the Fiscal Agent and effectuated by the entity appointed as common safe-keeper by the relevant Clearing Systems.

 

	
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The Notes are intended to be held in a manner which would allow Eurosytem eligibility and as such this Global Note is intended upon issue to be deposited with one of Euroclear or Clearstream, Luxembourg as common safekeeper.  This does not necessarily mean that the Notes represented by the Global Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra day credit operations by the Eurosystem either upon issue or at any or all times during their life, such recognition depending upon the European Central Bank being satisfied that Eurosystem eligibility criteria have been met).

	
13.
	
Contracts (Rights of third Parties) Act 1999

No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this permanent Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

	
14.
	
Severability

If any provision in or obligation under this permanent Global Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this permanent Global Note, or (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this permanent Global Note.

	
15.
	
Governing Law

This permanent Global Note and any non-contractual obligations arising out of or in connection with it are governed by, and construed in accordance with, English law.

IN WITNESS whereof the Issuer has caused this permanent Global Note to be signed by a person duly authorised on its behalf.

AUTOLIV, INC.

By: 

(Duly authorised)

Issued in London on 26 June, 2018.

 

CERTIFICATE OF AUTHENTICATION

This is the permanent Global Note 

described in the Agency Agreement

By or on behalf of

HSBC Bank plc as Fiscal Agent

(without recourse, warranty or liability)

CERTIFICATE OF EFFECTUATION

Effectuated without recourse,

warranty or liability by

as common safe-keeper

By: 

 

	
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Schedule 2

Form of Definitive Note

Part 1

Form of Definitive Note and Coupon 

(Face of Note)

 

	
000000
	
XS1713462585
	
00 00000

AUTOLIV, INC.

(incorporated with limited liability under the laws of State of Delaware, U.S.A.)

 

EUR [●] 0.750 per cent. Guaranteed Notes due 2023

 

unconditionally and irrevocably guaranteed

as to payment of principal, premium (if any) and interest by

AUTOLIV ASP, INC.

(incorporated with limited liability under the laws of State of Indiana, U.S.A.)

The issue of the Notes was authorised by a resolution of the Board of Directors of Autoliv, Inc. (the Issuer) passed on 18 April 2018 and the resolution of a committee of the Board of Director of the Issuer dated 14 June 2018; and the giving of the guarantee in respect of the Notes was authorised by a resolution of the Board of Directors of Autoliv ASP, Inc. (the Guarantor) passed on 23 May 2018.

This Note forms one of a series of Notes issued as bearer Notes in the denominations of EUR 100,000 and integral multiples of EUR 1,000 in excess thereof up to and including EUR199,000 in an aggregate principal amount of EUR 500,000,000.

The Issuer for value received and subject to and in accordance with the Conditions endorsed hereon hereby promises to pay to the bearer on 26 June 2023, [] (or on such earlier date as the principal sum (as determined under the Conditions) may become repayable under the said Conditions) the principal sum of:

EUR[relevant denomination] ([●]/Redemption Amount]

together with interest on the principal amount of EUR [relevant denomination] at the rate of 0.750 per cent. per annum determined under Condition 5 (Interest) payable annually in arrear on 26 June and together with such premium and other amounts as may be payable, all subject to and under the Conditions.

The Notes are issued pursuant to an Agency Agreement (the Agency Agreement) dated 26 June 2018 between, among others, the Issuer, the Guarantor and HSBC Bank plc as Fiscal Agent. Payments of principal, premium (if any) and interest in respect of the Notes are unconditionally and irrevocably guaranteed by the Guarantor as provided in a guarantee (the Guarantee) dated 26 June 2018 entered into by the Guarantor.  The Notes have the benefit of, and are subject to, the provisions contained in the Agency Agreement, the Guarantee and the Conditions.

If any provision in or obligation under this Note is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Note, or (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Note.

 

	
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Neither this Note nor any of the Coupons relating to this Note shall become valid or enforceable for any purpose unless and until this Note has been authenticated by or on behalf of the Fiscal Agent.

IN WITNESS WHEREOF this Note and the Coupons relating to this Note have been executed on behalf of the Issuer.

Dated as of [●],

Issued in London, England.

AUTOLIV, INC.

By:

CERTIFICATE OF AUTHENTICATION

This is one of the Notes described

in the Agency Agreement.

By or on behalf of

HSBC Bank plc as Fiscal Agent

(without recourse, warranty or liability)

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

	
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(Reverse of Note)

CONDITIONS OF THE NOTES

(as set out in Part 2 of this Schedule 2)

FISCAL AND PRINCIPAL PAYING AGENT

HSBC BANK PLC

and/or such other or further Fiscal Agent or Paying Agents and/or specified offices as may from time to time be appointed by the Issuer and notice of which has been given to the Noteholders.

 

	
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FORM OF COUPON

(Face of Coupon)

AUTOLIV, INC

 

EUR [●] 0.750 per cent. Guaranteed Notes due 2023

unconditionally and irrevocably guaranteed by AUTOLIV ASP, INC.

 

	
This Coupon relating to a Note payable in the denomination of EUR is payable to bearer, separately negotiable and subject to the Conditions of the Notes
	
 
	
Coupon for

EUR[●] per EUR1,000

due on

[●] [●]

AUTOLIV, INC.

By: 

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE. 

 

	
[●]00 000000
	
 
	
000000

 

	
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(Reverse of Coupon)

FISCAL AND PRINCIPAL PAYING AGENT:

HSBC BANK PLC

 

	
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Part 2

Conditions of the Notes

The €500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the “Notes”), which expression shall in these Conditions, unless the context otherwise requires, include any further notes issued pursuant to Condition 14 (Further Issues) and forming a single series with the Notes of Autoliv, Inc. (the “Issuer”) are issued subject to and with the benefit of an Agency Agreement dated 26 June 2018 (such agreement as amended and/or supplemented and/or restated from time to time, the “Agency Agreement”) made between the Issuer, Autoliv ASP, Inc. (the “Guarantor”) as guarantor and HSBC Bank plc as fiscal agent and principal paying agent (the “Fiscal Agent”) and the other initial paying agents named in the Agency Agreement (together with the Fiscal Agent, the “Paying Agents”). The holders of the Notes (the “Noteholders”) and the holders of the interest coupons appertaining to the Notes (the “Couponholders” and the “Coupons” respectively) are entitled to the benefit of a Deed of Covenant (the “Deed of Covenant”) dated 26 June 2018 and made by the Issuer. The original of the Deed of Covenant is held by the Common Safekeeper for Euroclear (as defined below) and Clearstream, Luxembourg (as defined below).

The statements in these Conditions include summaries of, and are subject to, the detailed provisions of and definitions in the Agency Agreement. Copies of the Agency Agreement and the Deed of Covenant are available for inspection during normal business hours by the Noteholders and Couponholders at the specified office of each of the Paying Agents. The Noteholders and the Couponholders are entitled to the benefit of, are bound by, and are deemed to have notice of, all the provisions of the Agency Agreement and the Deed of Covenant applicable to them. References in these Conditions to the Fiscal Agent and the Paying Agents shall include any successor appointed under the Agency Agreement.

	
1.
	
Form, Denomination and Title

	
1.1
	
Form and Denomination

The Notes are in bearer form, serially numbered, in the denomination of €100,000 and integral multiples of €1,000 in excess thereof up to and including €199,000 each with Coupons attached on issue. 

	
1.2
	
Title

Title to the Notes and to the Coupons will pass by delivery.

	
1.3
	
Holder Absolute Owner

The Issuer, the Guarantor and any Paying Agent will (except as otherwise required by law) deem and treat the bearer of any Note or Coupon as the absolute owner for all purposes (whether or not the Note or Coupon shall be overdue and notwithstanding any notice of ownership or writing on the Note or Coupon or any notice of previous loss or theft of the Note or Coupon) and shall not be required to obtain any proof thereof or as to the identity of such bearer.

	
2.
	
Status of the Notes

The Notes and the Coupons are direct, unconditional and (subject to the provisions of Condition 4 (Negative Pledge)) unsecured obligations of the Issuer and (subject as provided above) rank and will rank pari passu, without any preference among themselves, with all other outstanding unsecured and unsubordinated obligations of the Issuer, present and future, but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors‘ rights.

 

	
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3.
	
Guarantee

	
3.1
	
Guarantee

The payment of the principal and interest in respect of the Notes has been unconditionally and irrevocably guaranteed by the Guarantor under a deed of guarantee (the “Guarantee”) dated 26 June 2018 and executed by the Guarantor.

	
3.2
	
Status of the Guarantee

The obligations of the Guarantor under the Guarantee constitute direct, unconditional and (subject to the provisions of Condition 4 (Negative Pledge)) unsecured obligations of the Guarantor and (subject as provided above) rank and will rank pari passu with all other outstanding unsecured and unsubordinated obligations of the Guarantor, present and future, but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors' rights. The original of the Guarantee is held by the Fiscal Agent on behalf of, and copies are available during normal business hours for inspection by, the Noteholders and Couponholders at its specified office.

	
4.
	
Negative Pledge

	
4.1
	
Negative Pledge

So long as any of the Notes remains outstanding (as defined in the Agency Agreement) neither Issuer nor the Guarantor will, and each will procure that none of its Subsidiaries (as defined below) will, create or have outstanding any mortgage, charge, lien, pledge or other security interest (each a “Security Interest”) upon, or with respect to, any of its or their present or future business, undertaking, assets or revenues (including any uncalled capital) to secure any Relevant Indebtedness (as defined below), unless the Issuer or the Guarantor, as the case may be, in the case of the creation of a Security Interest, before or at the same time and, in any other case, promptly, takes any and all action necessary to ensure that (a) all amounts payable by it under the Notes and the Coupons (and/or the Guarantee, as the case may be) are secured by the Security Interest equally and rateably with the Relevant Indebtedness; or (b) such other Security Interest or other arrangement (whether or not it includes the giving of a Security Interest) shall be provided as is approved by an Extraordinary Resolution (as defined in the Agency Agreement) of the Noteholders; provided that, the foregoing provisions shall not apply to any Security Interest (i) arising by operation of law or (ii) created by an entity which becomes a Subsidiary after the date of creation of such Security Interest where the Security Interest was not created in connection with or in contemplation of such entity becoming a Subsidiary and does not extend to or cover any undertaking, assets or revenues (including any uncalled capital) of the Issuer, the Guarantor or any of their respective other Subsidiaries.

	
4.2
	
Interpretation

For the purposes of these Conditions:

“Relevant Indebtedness”: means (i) any present or future indebtedness (whether being principal, premium, interest or other amounts) for or in respect of any notes, bonds, debentures, debenture stock, loan stock or other securities which are for the time being or are or are intended by the issuer thereof to be quoted, listed or ordinarily dealt in on any stock exchange, over-the-counter or other securities market and (ii) any guarantee or indemnity in respect of any such indebtedness; and

“Subsidiary” means in relation to any person (the “first person”) at any particular time, any other person (the ”second person”):

	
 
	
(x)
	
whose affairs and policies the first person controls or has power to control, whether by ownership or share capital, contract, the power to appoint or remove members of the governing body of the second person or otherwise; or

	
 
	
(y)
	
whose financial statements are, in accordance with applicable law and generally accepted accounting principles, consolidated with those of the first person.

 

	
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5.
	
Interest

	
5.1
	
Interest Rate and Interest Payment Dates

The Notes bear interest on their outstanding principal amount from and including 26 June 2018 at the rate of 0.750 per cent. per annum (the “Rate of Interest”), payable annually in arrear on 26 June (each an “Interest Payment Date”). The first payment (representing a full year’s interest) (for the period from and including 26 June 2018 to but excluding 26 June 2019 and amounting to €7.50 per €1,000 principal amount of Notes) shall be made on 26 June 2019.

	
5.2
	
Interest Accrual

Each Note will cease to bear interest from and including its due date for redemption unless, upon due presentation, payment of the principal in respect of the Note is improperly withheld or refused or unless default is otherwise made in respect of payment. In such event, interest will continue to accrue until whichever is the earlier of:

	
 
	
(a)
	
the date on which all amounts due in respect of such Note have been paid; and

	
 
	
(b)
	
five days after the date on which the full amount of the moneys payable in respect of such Notes has been received by the Fiscal Agent and notice to that effect has been given to the Noteholders in accordance with Condition 12 (Notices).

	
5.3
	
Calculation of Broken Interest

When interest is required to be calculated in respect of a period of less than a full year, it shall be calculated by applying the Rate of Interest to each €1,000 principal amount of Notes (the “Calculation Amount”) and on the basis of (a) the actual number of days in the period from and including the date from which interest begins to accrue (the “Accrual Date”) to but excluding the date on which it falls due divided by (b) the actual number of days from and including the Accrual Date to but excluding the next following Interest Payment Date. The resultant figure shall be rounded to the nearest cent, half a cent being rounded upwards. The interest payable in respect of a Note shall be the product of such rounded figure and the amount by which the Calculation Amount is multiplied to reach the denomination of the relevant Note, without any further rounding.

	
6.
	
Payments

	
6.1
	
Payments in respect of Notes

Payments of principal and interest in respect of each Note will be made against presentation and surrender (or, in the case of part payment only, endorsement) of the Note, except that payments of interest due on an Interest Payment Date will be made against presentation and surrender (or, in the case of part payment only, endorsement) of the relevant Coupon, in each case at the specified office outside the United States of any of the Paying Agents.

	
6.2
	
Method of Payment

Payments will be made by credit or transfer to a euro account (or any other account to which euro may be credited or transferred) specified by the payee or, at the option of the payee, by euro cheque.

	
6.3
	
Missing Unmatured Coupons

Each Note should be presented for payment together with all relative unmatured Coupons, failing which the full amount of any relative missing unmatured Coupon (or, in the case of payment not being made in full, that proportion of the full amount of the missing unmatured Coupon which the amount so paid bears to the total amount due) will be deducted from the amount due for payment. 

 

	
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Each amount so deducted will be paid in the manner mentioned above against presentation and surrender (or, in the case of part payment only, endorsement) of the relative missing Coupon at any time before the expiry of 10 years after the Relevant Date (as defined in Condition 8 (Taxation)) in respect of the relevant Note (whether or not the Coupon would otherwise have become void pursuant to Condition 9 (Prescription)) or, if later, five years after the date on which the Coupon would have become due, but not thereafter. 

	
6.4
	
Payments subject to applicable laws

All payments in respect of the Notes are subject in all cases to (i) any fiscal or other laws and regulations applicable in the place of payment, but without prejudice to the provisions of Condition 8 and (ii) any withholding or deduction required pursuant to the U.S. Internal Revenue Code 1986 (the “Code”) or otherwise imposed pursuant to Sections 1471 to 1474 (inclusive) of the Code, any United States Treasury Regulations or agreements thereunder, any official interpretations thereof, any successor, substitute or similar legislation or law or any law implementing an intergovernmental approach thereto. 

	
6.5
	
Payment only on a Presentation Date

A holder shall be entitled to present a Note or Coupon for payment only on a Presentation Date and shall not, except as provided in Condition 5 (Interest), be entitled to any further interest or other payment if a Presentation Date is after the due date.

“Presentation Date” means a day which (subject to Condition 9 (Prescription)):

	
 
	
(x)
	
is or falls after the relevant due date;

	
 
	
(y)
	
is a Business Day in the place of the specified office of the Paying Agent at which the Note or Coupon is presented for payment; and

	
 
	
(z)
	
in the case of payment by credit or transfer to a euro account as referred to above, is a TARGET2 Settlement Day.

In this Condition, “Business Day” means, in relation to any place, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in that place and “TARGET2 Settlement Day” means any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET2) System is open. 

	
6.6
	
Initial Paying Agents

The names of the initial Paying Agents and their initial specified offices are set out at the end of these Conditions. The Issuer and the Guarantor reserve the right at any time to vary or terminate the appointment of any Paying Agent and to appoint additional or other Paying Agents provided that:

	
 
	
(a)
	
there will at all times be a Fiscal Agent;

	
 
	
(b)
	
so long as the Notes are listed on any stock exchange or admitted to listing by any other relevant authority, there will at all times be at least one Paying Agent (which may be the Fiscal Agent) having a specified office in the place (if any) required by the rules and regulations of the relevant Stock Exchange or any other relevant authority; and

	
 
	
(c)
	
there will at all times be a Paying Agent (which may be the Fiscal Agent) in a jurisdiction within Europe.

Notice of any variation, termination, appointment and/or of any changes in specified offices will be given to the Noteholders promptly by the Issuer in accordance with Condition 12 (Notices).

 

	
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7.
	
Redemption and Purchase

	
7.1
	
Redemption at Maturity

Unless previously redeemed or purchased and cancelled as provided below, the Issuer will redeem the Notes at their principal amount on 26 June 2023 (the “Maturity Date”).

	
7.2
	
Redemption for Taxation Reasons

If:

	
 
	
(a)
	
as a result of any change in, or amendment to, the laws or regulations of a Relevant Jurisdiction (as defined in Condition 8 (Taxation)), or any change in the application or official interpretation of the laws or regulations of a Relevant Jurisdiction, which change or amendment becomes effective after 21 June 2018, on the next Interest Payment Date either (i) the Issuer would be required to pay additional amounts as provided or referred to in Condition 8 (Taxation) or (ii) the Guarantor would be unable for reasons outside its control to procure payment by the Issuer and in the making payment itself would be required to pay such additional amounts; and

	
 
	
(b)
	
the requirement cannot be avoided by the Issuer or, as the case may be, the Guarantor taking reasonable measures available to it,

the Issuer may at its option, having given not less than 30 nor more than 60 days’ notice to the Noteholders in accordance with Condition 12 (Notices) (which notice shall be irrevocable), redeem all the Notes, but not some only, at any time at their principal amount together with interest accrued to but excluding the date of redemption, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer or, as the case may be, the Guarantor would be obliged to pay such additional amounts, were a payment in respect of the Notes then due. Prior to the publication of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Fiscal Agent to make available at its specified offices to the Noteholders (i) a certificate signed by two authorised signatories of the Issuer or, as the case may be, two authorised signatories of the Guarantor stating the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred and (ii) an opinion of independent legal advisers of recognised standing to the effect that the Issuer or, as the case may be, the Guarantor has or will become obliged to pay such additional amounts as a result of the change or amendment. 

	
7.3
	
Redemption at the Option of the Issuer

The Issuer may, having given:

	
 
	
(a)
	
not less than 15 nor more than 30 days’ notice to the Noteholders in accordance with Condition 12 (Notices); and

	
 
	
(b)
	
notice to the Fiscal Agent not less than 15 days before the giving of the notice referred to in (a),

(which notices shall be irrevocable and shall specify the date fixed for redemption), redeem the Notes, in whole or in part, at any time at the Relevant Early Redemption Amount.

 

	
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In this Condition, “Relevant Early Redemption Amount” means:

	
 
	
(i)
	
in relation to any date fixed for redemption which falls in the period up to and including the date falling three months prior to the Maturity Date, such amount as is equal to the greater of the amounts in subparagraphs (A) and (B) below together with interest accrued to but excluding the date fixed for redemption:

	
 
	
(A)
	
the principal amount outstanding of the Notes; and

	
 
	
(B)
	
an amount (as reported in writing to the Issuer and the Fiscal Agent by the Determination Agent) which is equal to the sum of the present values of the principal amount outstanding of the Notes at the date fixed for redemption and the Remaining Term Interest (exclusive of interest accrued to the date fixed for redemption) discounted to the date fixed for redemption on an annual basis at the Reference Bond Rate plus 0.20 per cent.

In this Condition:

“Calculation Date” means the date which is the second TARGET2 Settlement Day prior to the date fixed for redemption; 

“Determination Agent” means an investment bank or financial institution of international standing selected by the Issuer and notified to the Fiscal Agent and the Noteholders;

“Reference Bond” means the DBR 1.5% 15/05/2023 (ISIN: DE0001102317) (or, where the Determination Agent advises the Issuer and the Fiscal Agent that, for reasons of illiquidity or otherwise, such government bond is not appropriate for such purpose, such other government bond as the Determination Agent may recommend);

“Reference Bond Price” means, with respect to any date fixed for redemption, (A) the arithmetic average of the Reference Government Bond Dealer Quotations for such date fixed for redemption, after excluding the highest and lowest such Reference Government Bond Dealer Quotations, or (B) if the Determination Agent obtains fewer than four such Reference Government Bond Dealer Quotations, the arithmetic average of all such quotations; 

“Reference Bond Rate” means, with respect to any date fixed for redemption, the rate per annum equal to the annual yield to maturity or interpolated yield to maturity on an Actual/Actual (ICMA) basis of the Reference Bond, assuming a price for the Reference Bond (expressed as a percentage of its nominal amount) equal to the Reference Bond Price for such date fixed for redemption;

“Reference Government Bond Dealer” means each of the five banks selected by the Issuer after consultation with the Determination Agent, or their affiliates, which are (A) primary government securities dealers, or (B) market makers experienced in pricing corporate bond issues;

“Reference Government Bond Dealer Quotations” means, with respect to each Reference Government Bond Dealer and any Calculation Date, the arithmetic average, as determined by the Determination Agent, of the bid and offered prices for the Reference Bond (expressed in each case as a percentage of its nominal amount) at 11 a.m. (Central European time) on the Calculation Date quoted in writing to the Determination Agent by such Reference Government Bond Dealer; and

“Remaining Term Interest” means the aggregate amount of scheduled payment(s) of interest on the Notes for the remaining term of the Notes determined on the basis of the Rate of Interest from and including the date fixed for redemption; and

 

	
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(ii)
	
in relation to any date fixed for redemption which falls in the period from, but excluding, the date falling three months prior to the Maturity Date to but excluding the Maturity Date, such amount as is equal to the principal amount outstanding of the Notes together with interest accrued to but excluding the date fixed for redemption.

	
7.4
	
Provisions relating to Partial Redemption

In the case of a partial redemption of Notes, Notes to be redeemed will be selected individually by lot in such place and in such manner as the Fiscal Agent may decide not more than 30 days before the date fixed for redemption. Notice of any such selection will be given not less than 15 days before the date fixed for redemption. Each notice will specify the date fixed for redemption and the aggregate principal amount of the Notes to be redeemed, the serial numbers of the Notes called for redemption, the serial numbers of Notes previously called for redemption and not presented for payment and the aggregate principal amount of the Notes which will be outstanding after the partial redemption.

	
7.5
	
Redemption at the Option of the Holders

If a Change of Control Put Event (as defined below) occurs, each Noteholder shall have the option (unless, prior to the giving of the Change of Control Notice (as defined below), the Issuer shall have given notice under Condition 7.2 (Redemption for Taxation Reasons) or Condition 7.3 (Redemption at the Option of the Issuer) (if applicable)) to require the Issuer to redeem or, at the Issuer’s option, purchase (or procure the purchase of) that Noteholder’s Notes at their principal amount together with interest accrued to but excluding the Change of Control Settlement Date (as defined below). Such option (the “Change of Control Put Option”) shall operate as set out below.

If a Change of Control Put Event occurs then, within 14 days of the Issuer becoming aware that such Change of Control Put Event has occurred, the Issuer shall give notice (a “Change of Control Notice”) to the Noteholders in accordance with Condition 12 (Notices) specifying the nature of the Change of Control Put Event and the procedure for exercising the Change of Control Put Option.

To exercise the Change of Control Put Option, the holder of the Notes must deliver at the specified office of any Paying Agent on any Business Day (as defined in Condition 6.5 (Payment only on a Presentation Date)) at the place of such specified office falling within the period of 30 days after the Change of Control Notice is given by the Issuer (the “Change of Control Put Period”), a duly signed and completed notice of exercise in the form (for the time being current and which may, if this Note is held through Euroclear Bank SA/NV (“Euroclear”) or Clearstream Banking S.A. (“Clearstream, Luxembourg”), be any form acceptable to and delivered in a manner acceptable to Euroclear or Clearstream, Luxembourg, as applicable) obtainable from any specified office of any Paying Agent (a “Change of Control Exercise Notice”) and in which the holder must specify a bank account (or, if payment is to be made by cheque, an address) to which payment is to be made under this Condition 7.5 accompanied by such Notes or evidence satisfactory to the Paying Agent concerned that such Notes will, following the delivery of the Change of Control Exercise Notice, be held to its order or under its control. A Change of Control Exercise Notice given by a holder of any Note shall be irrevocable except where, prior to the due date of redemption, an Event of Default has occurred and is continuing, in which event such holder, at its option, may elect by notice to the Issuer in accordance with Condition 12 (Notices) to withdraw the Change of Control Exercise Notice.

If 80 per cent. or more in nominal amount for the Notes then outstanding have been redeemed or purchased pursuant to this Condition 7.5, the Issuer may, on giving not less than 30 nor more than 60 days’ notice to Noteholders (such notice being given within 30 days after the Change of Control Settlement Date), redeem or purchase (or procure the purchase of), at its option, all but not some only of the remaining outstanding Notes at their principal amount together with interest (if any) accrued to (but excluding) the date fixed for such redemption or purchase.

 

	
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Any Note which is the subject of a Change of Control Exercise Notice which has been delivered to a Paying Agent prior to the expiry of the Change of Control Put Period shall be redeemed or, as the case may be, purchased by (or on behalf of) the Issuer on the date which is the seventh day immediately following the last day of the Change of Control Put Period (the “Change of Control Settlement Date”).

A Change of Control Put Event will be deemed to occur if:

	
 
	
(i)
	
a person or persons, acting together, other than a holding company whose shareholders are or are to be substantially similar to the pre-existing shareholders of the Issuer or any holding company of the Issuer, acquire (i) the beneficial ownership (directly or indirectly) of more than 50 per cent. of the total voting rights represented by shares of the Issuer, or (ii) have the power to appoint or remove the majority of the members of the board of directors of the Issuer (each such event being, a “Change of Control”); 

	
 
	
(ii)
	
on the date (the “Relevant Announcement Date”) that is the earlier of (1) the date of the first public announcement of the relevant Change of Control and (2) the date of the earliest Relevant Potential Change of Control Announcement (as defined below) (if any) the Notes have been assigned:

	
 
	
(A)
	
an investment grade credit rating (Baa3/BBB-/BBB- or equivalent or better) from any Rating Agency (provided by such Rating Agency at the invitation or with the consent of the Issuer) and such rating from any Rating Agency is, within the Change of Control Period, either downgraded to a non-investment grade credit rating (Ba1/BB+/BB+ or equivalent or worse) or withdrawn and is not, within the Change of Control Period, subsequently (in the case of a downgrade) upgraded or (in the case of a withdrawal) reinstated to an investment grade credit rating by such Rating Agency; or

	
 
	
(B)
	
a non-investment grade credit rating (Ba1/BB+/BB+ or equivalent or worse) from any Rating Agency (provided by such Rating Agency at the invitation or with the consent of the Issuer) and such rating from any Rating Agency is, within the Change of Control Period, downgraded by one or more notches (for illustration, Ba1/BB+/BB+ to Ba2/BB/BB being one notch) or withdrawn and is not, within the Change of Control Period, subsequently (in the case of a downgrade) upgraded or (in the case of a withdrawal) reinstated to its earlier credit rating or better by such Rating Agency; or

	
 
	
(C)
	
no credit rating from any Rating Agency and a Negative Rating Event also occurs within the Change of Control Period,

provided that, if at the time of the occurrence of the Change of Control the Notes carry a credit rating from more than one Rating Agency, at least one of which is investment grade, then sub-paragraph (A) will apply; and

	
 
	
(iii)
	
in making any decision(s) referred to above the relevant Rating Agency announces publicly or confirms in writing to the Issuer that such decision(s) resulted, in whole or in part, from the occurrence of the Change of Control or the Relevant Potential Change of Control Announcement (whether or not the Change of Control shall have occurred at the time such rating is downgraded and/or withdrawn).

 

	
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In these Conditions:

“Change of Control Period” means the period commencing on the Relevant Announcement Date and ending 90 days after the Change of Control (or such longer period for which the Issuer is under consideration (such consideration having been announced publicly within the period ending 90 days after the Change of Control) for rating review or, as the case may be, rating by a Rating Agency, such period not to exceed 60 days after the public announcement of such consideration);

“Fitch” means Fitch Ratings Limited;

“Moody’s” means Moody’s Investors Services Limited;

“Negative Rating Event” shall be deemed to have occurred, if at any time there is no rating assigned to the Notes by any Rating Agency (at the invitation or with the consent of the Issuer), either (i) the Issuer does not, prior to or not later than 21 days after the occurrence of the relevant Change of Control, seek, and thereafter throughout the Change of Control Period use all reasonable endeavours to obtain, a rating of the Notes or (ii) if the Issuer does so seek and use all such reasonable endeavours, it is unable to obtain such rating of at least investment grade (Baa3/BBB-/BBB- or equivalent or better) by the end of the Change of Control Period and the relevant Rating Agency announces publicly or confirms in writing to the Issuer and/or the Guarantor that the failure to issue a rating of at least investment grade (Baa3/BBB-/BBB- or equivalent or better) was as a result, in whole or in part, of the Change of Control or the Relevant Potential Change of Control Announcement (whether or not the Change of Control had occurred at such time);

“Rating Agency” means Moody’s, S&P, Fitch or any of their respective successors or any other internationally recognised rating agency (a “Substitute Rating Agency”) substituted for any of them by the Issuer from time to time; 

“Relevant Potential Change of Control Announcement” means any public announcement or statement by the Issuer, any actual or potential bidder or any adviser acting on behalf of any actual or potential bidder relating to any potential Change of Control where within 180 days following the date of such announcement or statement, a Change of Control occurs; and

“S&P” means Standard & Poor’s Credit Market Services Europe Limited.

	
7.6
	
Purchases

The Issuer, the Guarantor or any of the Issuer’s other Subsidiaries (as defined above) may at any time purchase Notes (provided that, if they should be cancelled under Condition 7.7 below, all unmatured Coupons appertaining to the Notes are purchased with the Notes) in any manner and at any price. Such Notes may be held, reissued, resold or, at the option of the Issuer or Guarantor, surrendered to the Fiscal Agent for cancellation.

	
7.7
	
Cancellations

All Notes which are purchased pursuant to Condition 7.5 or which are to be redeemed will forthwith be cancelled, together with all relative unmatured Coupons attached to the Notes or surrendered with the Notes, and accordingly may not be reissued or resold. 

	
7.8
	
Notices Final

Upon the expiry of any notice as is referred to in Condition 7.2 or Condition 7.3 above, the Issuer shall be bound to redeem the Notes to which the notice refers in accordance with the terms of such Condition.

 

	
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8.
	
Taxation

	
8.1
	
Payment without Withholding

All payments in respect of the Notes by or on behalf of the Issuer or the Guarantor shall be made without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature (“Taxes”) imposed or levied by or on behalf of any of the Relevant Jurisdiction, unless the withholding or deduction of the Taxes is required by law. In that event, the Issuer or, as the case may be, the Guarantor will pay such additional amounts as may be necessary in order that the net amounts received by the Noteholders and Couponholders after the withholding or deduction shall equal the respective amounts which would have been receivable in respect of the Notes or, as the case may be, Coupons in the absence of the withholding or deduction; except that no additional amounts shall be payable in relation to any payment in respect of any Note or Coupon:

	
 
	
(a)
	
the holder of which is liable for Taxes in respect of such Note or Coupon by reason of having some connection with the Relevant Jurisdiction other than a mere holding of the Note or Coupon; or

	
 
	
(b)
	
presented for payment in the United States; or

	
 
	
(c)
	
presented for payment by or on behalf of a holder who would have been able to avoid such withholding or deduction by satisfying any statutory or procedural requirements (including, without limitation, the provision of information or a Internal Revenue Service Form W-8 or Form W-9 (or a successor form)); or

	
 
	
(d)
	
presented for payment by or on behalf of a holder who would have been able to avoid such withholding or deduction by presenting the relevant Note or Coupon to another Paying Agent in a Member State of the European Union; or

	
 
	
(e)
	
presented for payment more than 30 days after the Relevant Date (as defined below) except to the extent that a holder would have been entitled to additional amounts on presenting the same for payment on the last day of the period of 30 days assuming that day to have been a Presentation Date (as defined in Condition 6 (Payments)).

Notwithstanding the foregoing, no additional amounts shall be payable for or on account of (i) any taxes, duties, assessments or governmental charges that are imposed otherwise than by deduction or withholding from payments made under or with respect to the Notes, (ii) any taxes, duties, assessments or governmental charges that are imposed on or with respect to any payment on an Notes to an Noteholder who is a fiduciary, partnership, limited liability company, or person other than the Beneficial Owner of such payment to the extent that the Beneficial Owner with respect to such payment (or portion thereof) would not have been entitled to the additional amounts had the payment (or the relevant portion thereof) been made directly to such Beneficial Owner and (iii) any deduction or withholding imposed or required pursuant to an agreement described in Section 1471(b) of the Code, or otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations thereunder or official interpretations thereof) or an intergovernmental agreement between the United States of America and another jurisdiction facilitating the implementation thereof (or any fiscal or regulatory legislation, rules or practices implementing such an intergovernmental agreement). As used in clause (ii) above, “Beneficial Owner” means the person who is required by the laws of the relevant tax jurisdiction to include the payment in income for tax purposes.

 

	
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8.2
	
Interpretation

In these Conditions:

	
 
	
(a)
	
Relevant Date means the date on which the payment first becomes due but, if the full amount of the money payable has not been received by the Fiscal Agent on or before the due date, it means the date on which, the full amount of the money having been so received, notice to that effect has been duly given to the Noteholders by the Issuer in accordance with Condition 12 (Notices); and

	
 
	
(b)
	
Relevant Jurisdiction means United States or any political subdivision or any authority thereof or therein having power to tax or any other jurisdiction or any political subdivision or any authority thereof or therein having the power to tax to which the Issuer or the Guarantor, as the case may be, to which payments of principal and interest on the Notes and Coupons or payments made under the Guarantee become generally subject to tax.

	
8.3
	
Additional Amounts

Any reference in these Conditions to any amounts in respect of the Notes shall be deemed also to refer to any additional amounts which may be payable under this Condition.

	
9.
	
Prescription

Notes and Coupons will become void unless presented for payment within periods of 10 years (in the case of principal) and five years (in the case of interest) from the Relevant Date in respect of the Notes or, as the case may be, the Coupons, subject to the provisions of Condition 6 (Payments). 

	
10.
	
Events of Default 

	
10.1
	
Events of Default 

The holder of any Note may give notice to the Issuer that the Note is, and it shall accordingly forthwith become, immediately due and repayable at its principal amount, together with interest accrued to the date of repayment, if any of the following events (“Events of Default”) shall have occurred and be continuing:

	
 
	
(a)
	
if default is made in the payment of any principal or interest due in respect of the Notes or any of them and the default continues for a period of 7 days in the case of principal or 14 days in the case of interest; or

	
 
	
(b)
	
if the Issuer or the Guarantor fails to perform or observe any of its other obligations under these Conditions or the Guarantee and (except in any case where the failure is incapable of remedy, when no continuation or notice as is hereinafter mentioned will be required) the failure continues for the period of 30 days following the service by any Noteholder on the Issuer or the Guarantor (as the case may be) of notice requiring the same to be remedied; or

	
 
	
(c)
	
if (i) any Indebtedness for Borrowed Money (as defined below) of the Issuer, the Guarantor or any Material Subsidiary becomes due and repayable prematurely by reason of an event of default (however described); (ii) the Issuer, the Guarantor or any Material Subsidiary fails to make any payment in respect of any Indebtedness for Borrowed Money on the due date for payment or, as the case may be, within any originally applicable grace period; or (iii) any security given by the Issuer, the Guarantor or any Material Subsidiary for any Indebtedness for Borrowed Money becomes enforceable; or (iv) default is made by the Issuer, the Guarantor or any Material Subsidiary in making any payment due or, as the case may be, within any originally applicable grace period under any guarantee and/or indemnity given by it in relation to any Indebtedness for Borrowed Money of any other person; provided that, the aggregate amount of the relevant Indebtedness for Borrowed Money in respect of which one or more of the events mentioned above in this Condition 10.1(c) have occurred and are continuing exceeds €40 million or its equivalent in any other currency; or

 

	
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(d)
	
if any final order is made by any competent court or resolution is passed for the winding up or dissolution of the Issuer, the Guarantor or any Material Subsidiary save for the purposes of reorganisation (i) on terms previously approved by an Extraordinary Resolution of the Noteholders or (ii) in the case of a Material Subsidiary, whereby the undertaking and assets of the Material Subsidiary are transferred to or otherwise vested in the Issuer or another of its Subsidiaries; or

	
 
	
(e)
	
if the Issuer, the Guarantor or any Material Subsidiary ceases or threatens to cease to carry on the whole or substantially all of its business (except a cessation (i) for the purposes of reorganisation or similar arrangement on terms previously approved by an Extraordinary Resolution of the Noteholders or (ii) in the case of a Material Subsidiary, in connection with the transfer of all or the major part of its business to the Issuer, the Guarantor or any other Subsidiary of either of them which thereby becomes a Material Subsidiary, and provided that a bona fide disposal for full value on an arm’s length basis of the whole or substantially all of the business of the Issuer, the Guarantor or a Material Subsidiary shall be deemed not to be a cessation for the purposes of this paragraph) or the Issuer, the Guarantor or any Material Subsidiary stops or threatens to stop payment of, or is unable to, or admits inability to, pay, its debts (or any class of its debts) as they fall due, or is adjudicated bankrupt or insolvent by a court of competent jurisdiction; or 

	
 
	
(f)
	
if (i) proceedings are initiated against the Issuer, the Guarantor or any Material Subsidiary under any applicable liquidation, insolvency, composition, reorganisation or other similar laws or an application is made (or documents filed with a court) for the appointment of an administrative or other receiver, manager, administrator, liquidator or other similar official, or an administrative or other receiver, manager, administrator, liquidator or other similar official is appointed, in relation to the Issuer, the Guarantor or any Material Subsidiary or, as the case may be, in relation to the whole or substantially all of the undertaking or assets of any of them or an encumbrancer takes possession of the whole or substantially all of the undertaking or assets of any of them, or a distress, execution, attachment, sequestration or other process is levied, enforced upon, sued out or put in force against the whole or substantially all of the undertaking or assets of any of them (except in any such case for the purpose of a reconstruction, merger, consolidation, amalgamation or other similar arrangement the terms of which have previously been approved by an Extraordinary Resolution of Noteholders or, in the case of a Material Subsidiary, in connection with the transfer of all or the major part of its business, undertaking and assets to the Issuer, Guarantor or another Subsidiary of either of them which thereby becomes a Material Subsidiary), and (ii) in any such case is not discharged within 45 days; or

	
 
	
(g)
	
if the Issuer, the Guarantor or any Material Subsidiary initiates or consents to judicial proceedings relating to itself under applicable liquidation, insolvency, composition, reorganisation or other similar laws (including the obtaining of a moratorium) or makes a conveyance or assignment for the benefit of, or enters into any composition or other arrangement with, its creditors generally (or any class of its creditors) or convenes a meeting to consider a proposal for an arrangement or composition with its creditors generally (or any class of its creditors); or

	
 
	
(h)
	
if the Guarantee ceases to be, or is claimed by the Issuer or the Guarantor not to be, in full force and effect.

	
10.2
	
Interpretation

For the purposes of this Condition:

	
 
	
(a)
	
“Indebtedness for Borrowed Money” means any indebtedness (whether being principal, premium, interest or other amounts) for or in respect of any borrowed money or any liability under or in respect of any acceptance or acceptance credit or any notes, bonds, debentures, debenture stock, loan stock or other securities;

 

	
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(b)
	
“Material Subsidiary” means each Subsidiary of the Issuer (or the Guarantor, as the case may be) the EBITDA of which (on an unconsolidated basis) as at the date at which its latest audited financial statements were prepared or, as the case may be, for the financial period to which those financial statements relate accounts for 10 per cent. or more of the Consolidated EBITDA (all as calculated by reference to the latest audited consolidated financial statements of the Issuer), provided that if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Issuer were prepared, the financial statements shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary (that adjustment being certified by the auditors as representing an accurate reflection of the Consolidated EBITDA of the Issuer); and

	
 
	
(c)
	
“Consolidated EBITDA” means, for any financial period, the consolidated profit or loss of the Issuer and its Subsidiaries (the “Group”), as shown in the income statement:

	
 
	
(i)
	
before deducting any income tax expense, as shown in the income statement;

	
 
	
(ii)
	
before deducting any finance costs and excluding any finance income, as shown in the income statement;

	
 
	
(iii)
	
after adding back any amount attributable to the amortisation or depreciation of assets of the Group or any members of the Group;

	
 
	
(iv)
	
before taking into account any exceptional items of a one-off or non-recurring nature (including, without limitation, the costs associated with any restructuring programme or with any disposal not made in the ordinary course of business);

	
 
	
(v)
	
after adding back or deducting, as the case may be, the amount of any loss or gain against book value arising on a disposal of any asset (other than in the ordinary course of trading) and any loss or gain arising on any upward or downward revaluation of any asset (including without limitation any impairment of goodwill);

	
 
	
(vi)
	
before taking in to account any unrealised gains or loss on any derivative instrument;

	
 
	
(vii)
	
after deducting the amount of profit (or adding back the amount of any loss) of any member of the Group which is attributable to non-controlling interests; and

	
 
	
(viii)
	
after excluding any amortisation or gains or losses under IAS 39 arising from the discontinuation of hedging agreements,

where, for the purposes of this definition, the exchange rate to be used shall be the exchange rate used in the financial statements of the Group for the relevant financial period.

Consolidated EBITDA shall be adjusted by including (or excluding), on a pro-forma basis, EBITDA attributable to companies or businesses acquired (or divested) during the relevant financial period as if they had been acquired (or divested) on the first day of the relevant financial period; and

	
10.3
	
Reports

A report by any two authorised signatories of the Issuer that in their opinion a Subsidiary of the Issuer is or is not or was or was not at any particular time or throughout any specified period a Material Subsidiary shall, in the absence of manifest error, be conclusive and binding on all parties.

 

	
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11.
	
Replacement of Notes and Coupons

Should any Note or Coupon be lost, stolen, mutilated, defaced or destroyed it may be replaced at the specified office of the Fiscal Agent upon payment by the claimant of the expenses incurred in connection with the replacement and on such terms as to evidence and indemnity as the Issuer may reasonably require. Mutilated or defaced Notes or Coupons must be surrendered before replacements will be issued.

	
12.
	
Notices

	
12.1
	
Notices to the Noteholders

Notices required to be given to the Holders of the Notes pursuant to these Conditions shall be valid if published in a leading English language daily newspaper (which is expected to be the Financial Times) or, if such publication is not practicable, in an English language newspaper having general circulation in Europe. The Issuer shall also ensure that notices are duly given or published in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are for the time being listed. Any such notice shall be deemed to have been given on the date of first publication (or if published more than once or on different dates, on the first date on which publication shall have been made). Couponholders will be deemed for all purposes to have notice of the contents of any notice given to Noteholders in accordance with this Condition 12.

	
12.2
	
Notices from the Noteholders

Notices to be given by any Noteholder shall be in writing and given by lodging the same, together with the relative Note or Notes, with the Fiscal Agent or, if the Notes are held in a clearing system, may be given through the clearing system in accordance with its standard rules and procedures.

	
13.
	
Meetings of Noteholders and Modification

	
13.1
	
Meetings of Noteholders

The Agency Agreement contains provisions for convening meetings of the Noteholders to consider any matter affecting their interests, including the modification by Extraordinary Resolution of any of these Conditions or the Guarantee or any of the provisions of the Agency Agreement. The quorum at any meeting for passing an Extraordinary Resolution will be one or more persons present holding or representing more than 50 per cent. in principal amount of the Notes for the time being outstanding, or at any adjourned such meeting one or more persons present whatever the principal amount of the Notes held or represented by him or them, except that at any meeting the business of which includes any matter defined in the Agency Agreement as a Basic Terms Modification, including the modification of the Guarantee or certain of these Conditions (including the date of maturity of the Notes or any date for payment of interest thereon, reducing or cancelling the amount of principal or the rate of interest payable in respect of the Notes or altering the currency of payment of the Notes), the necessary quorum for passing an Extraordinary Resolution will be one or more persons present holding or representing not less than two-thirds, or at any adjourned meeting not less than one-third, of the principal amount of the Notes for the time being outstanding. The Agency Agreement provides that (i) a resolution passed at a meeting duly convened and held in accordance with the Agency Agreement by a majority consisting of not less than three-fourths of the votes cast on such resolution, (ii) a resolution in writing signed by or on behalf of the holders of not less than three-fourths in principal amount of the Notes for the time being outstanding or (iii) consent given by way of electronic consents through the relevant clearing system(s) (in a form satisfactory to the Fiscal Agent) by or on behalf of the holders of not less than three-fourths in principal amount of the Notes for the time being outstanding, shall, in each case, be effective as an Extraordinary Resolution of the Noteholders. An Extraordinary Resolution passed by the Noteholders will be binding on all Noteholders, whether or not they are present at any meeting and whether or not they voted on the resolution, and on all Couponholders.

 

	
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13.2
	
Modification

The Fiscal Agent, the Issuer and the Guarantor may agree, without the consent of the Noteholders or Couponholders, to:

	
 
	
(a)
	
any modification of, the Notes, the Coupons or any of the provisions of the Agency Agreement which is of a formal, minor or technical nature or is made to correct a manifest error or to comply with mandatory provisions of the law, or 

	
 
	
(b)
	
any modification (except a Basic Terms Modification (being a matter in respect of which an increased quorum is required as mentioned above)) of the Notes, the Coupons or the Agency Agreement which is not materially prejudicial to the interests of the Noteholders. 

Any modification shall be binding on the Noteholders and the Couponholders and, unless the Fiscal Agent agrees otherwise, any modification shall be notified by the Issuer to the Noteholders as soon as practicable thereafter in accordance with Condition 12 (Notices).

	
14.
	
Further Issues

The Issuer may from time to time without the consent of the Noteholders or Couponholders create and issue further notes, having terms and conditions the same as those of the Notes, or the same except for the amount and date of the first payment of interest, which may be consolidated and form a single series with the outstanding Notes.

	
15.
	
Governing Law and Submission To Jurisdiction

	
15.1
	
Governing Law

The Agency Agreement, the Guarantee, the Deed of Covenant, the Notes and the Coupons and any non-contractual obligations arising out of or in connection with them are governed by, and construed in accordance with English law. 

	
15.2
	
Submission to Jurisdiction

	
(a)
	
Subject to Condition 15.2(c) below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with the Notes or the Coupons, including any dispute as to their existence, validity, interpretation, performance, breach or termination or the consequences of their nullity and any dispute relating to any non-contractual obligations arising out of or in connection with the Notes and/or the Coupons (a “Dispute”) and each of the Issuer, the Guarantor and any Noteholders and Couponholders in relation to any Dispute submits to the exclusive jurisdiction of the English courts.

	
(b)
	
For the purposes of this Condition, each of the Issuer and the Guarantor waives any objection to the English courts on the grounds that they are an inconvenient or inappropriate forum to settle any Dispute.

	
(c)
	
To the extent allowed by law, the Noteholders and the Couponholders may, in respect of any Dispute or Disputes, take (i) proceedings in any other court with jurisdiction; and (ii) concurrent proceedings in any number of jurisdictions.

	
15.3
	
Appointment of Process Agent

The Issuer irrevocably appoints Airbags International Limited at Viking Way, Congleton, Cheshire CW12 1TT as its agent for service of process in any proceedings before the English courts in relation to any Dispute and agrees that, in the event of Airbags International Limited being unable or unwilling for any reason so to act, it will promptly appoint another person as its agent for service of process in England in respect of any Dispute. The Issuer agrees that failure by a process agent to notify it of any process will not invalidate service. Nothing in this Condition shall affect the right to serve process in any other manner permitted by law.

 

	
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15.4
	
Other Documents

Each of the Issuer and the Guarantor (in each case where applicable) has in the Agency Agreement, the Deed of Covenant and the Guarantee submitted to the jurisdiction of the English courts and appointed an agent in England for service of process, in terms substantially similar to those set out above. 

	
15.5
	
Waiver of Trial by Jury

Without prejudice to Condition 15.2 the Issuer waives any right it may have to a jury trial or any claim or cause of action in connection with the Notes and the Coupons. These Conditions may be filed as a written consent to a bench trial. 

	
16.
	
Rights of Third Parties

No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term or condition of the Notes, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

 

	
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Schedule 3

Form of Deed of Covenant

THIS DEED OF COVENANT is made on 26 June 2018 by Autoliv, Inc. (the Issuer) in favour of the account holders or participants specified below of Clearstream Banking S.A. (Clearstream, Luxembourg) and/or Euroclear Bank S.A./N.V. (Euroclear) (each a Clearing System).

WHEREAS:

	
(A)
	
The Issuer has entered into an Agency Agreement (the Agency Agreement, which expression includes the same as it may be amended, supplemented, novated or restated from time to time) dated 26 June 2018 between the Issuer, Autoliv ASP, Inc. as guarantor (the Guarantor), HSBC Bank plc as fiscal agent (the Fiscal Agent) and the other agents named therein in relation to the issue of EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes).  The terms and conditions of the Notes (the Conditions) are set out in Schedule 2 to the Agency Agreement.  

	
(B)
	
Payments of principal, premium (if any) and interest in respect of the Notes are unconditionally and irrevocably guaranteed by the Guarantor as provided in a guarantee (the Guarantee) dated 26 June 2018 entered into by the Guarantor.

	
(C)
	
The Notes will be issued in bearer form and will initially be represented by, and comprised in, Global Notes (as defined in the Agency Agreement), in each case representing a certain number of underlying Notes (the Underlying Notes).

	
(D)
	
Each Global Note may, after issue, be deposited with a depositary for one or more Clearing Systems (each a Relevant Clearing System and together, the Relevant Clearing System).  Upon any deposit of a Global Note the Underlying Notes represented by the Global Note will be credited to a securities account or securities accounts with the Relevant Clearing System.  Any account holder with the Relevant Clearing System which has Underlying Notes credited to its securities account from time to time (other than any Relevant Clearing System which is an account holder of any other Relevant Clearing System) (each an Accountholder) will, subject to and in accordance with the terms and conditions and operating procedures or management regulations of the Relevant Clearing System, be entitled to transfer the Underlying Notes and (subject to and upon payment being made by the Issuer to the bearer in accordance with the terms of the Global Note) will be entitled to receive payments from the Relevant Clearing System calculated by reference to the Underlying Notes credited to its securities account.

	
(E)
	
In certain circumstances specified in each Global Note, the bearer of the Global Note will have no further rights under the Global Note (but without prejudice to the rights which any person may have pursuant to this Deed of Covenant).  The time at which this occurs is referred to as the Relevant Time.  In those circumstances, each Accountholder will, subject to and in accordance with the terms of this Deed and the Guarantee, acquire against the Issuer and the Guarantor all those rights which the Accountholder would have had if, prior to the Relevant Time, duly executed and authenticated definitive Notes had been issued in respect of its Underlying Notes and the definitive Notes were held and beneficially owned by the Accountholder.

NOW THIS DEED WITNESSES AS FOLLOWS:

	
1.
	
If at any time the bearer of the Global Note ceases to have rights under it in accordance with its terms, the Issuer covenants with each Accountholder that each Accountholder shall automatically acquire at the Relevant Time, without the need for any further action on behalf of any person, against the Issuer all those rights which the Accountholder would have had if at the Relevant Time it held and beneficially owned executed and authenticated definitive Notes in respect of each Underlying Note represented by the Global Note which the Accountholder has credited to its securities account with the Relevant Clearing System at the Relevant Time.

 

	
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The Issuer's obligation under this clause shall be a separate and independent obligation by reference to each Underlying Note which an Accountholder has credited to its securities account with the Relevant Clearing System and the Issuer agrees that an Accountholder may assign its rights under this Deed in whole or in part.

	
2.
	
The records of the Relevant Clearing System shall be conclusive evidence of the identity of the Accountholders and the number of Underlying Notes credited to the securities account of each Accountholder.  For these purposes a statement issued by the Relevant Clearing System stating:

	
 
	
(a)
	
the name of the Accountholder to which the statement is issued; and

	
 
	
(b)
	
the aggregate principal amount of Underlying Notes credited to the securities account of the Accountholder as at the opening of business on the first day following the Relevant Time on which the Relevant Clearing System is open for business,

shall, in the absence of manifest error, be conclusive evidence of the records of the Relevant Clearing System at the Relevant Time.

	
3.
	
In the event of a dispute, the determination of the Relevant Time by the Relevant Clearing System shall (in the absence of manifest error) be final and conclusive for all purposes in connection with the Accountholders with securities accounts with the Relevant Clearing System.

	
4.
	
The Issuer undertakes in favour of each Accountholder that, in relation to any payment to be made by it under this Deed, it will comply with the provisions of Condition 8 (Taxation) of the Notes to the extent that they apply to any payments in respect of Underlying Notes as if those provisions had been set out in full in this Deed.

	
5.
	
The Issuer will pay any stamp and other duties and taxes, including interest and penalties, payable on or in connection with the execution of this Deed and any action taken by any Accountholder to enforce the provisions of this Deed.

	
6.
	
The Issuer represents, warrants and undertakes to and with each Accountholder that it has all corporate power, and has taken all necessary corporate or other steps, to enable it to execute, deliver and perform this Deed, and that this Deed constitutes legal, valid and binding obligations of the Issuer enforceable in accordance with its terms subject to the laws of bankruptcy and other laws affecting the rights of creditors generally.

	
7.
	
This Deed shall take effect as a deed poll for the benefit of the Accountholders from time to time.  This Deed shall be deposited with and held by the Common Safekeeper for Euroclear and Clearstream, Luxembourg until all the obligations of the Issuer under this Deed have been discharged in full.

	
8.
	
The Issuer acknowledges the right of every Accountholder to the production of, and the right of every Accountholder to obtain (upon payment of a reasonable charge) a copy of, this Deed, and further acknowledges and covenants that the obligations binding upon it contained in this Deed are owed to, and shall be for the account of, each and every Accountholder, and that each Accountholder shall be entitled severally to enforce those obligations against the Issuer.

	
9.
	
If any provision in or obligation under this Deed is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Deed, or (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Deed.

 

	
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10.
	
(a)    This Deed and any non-contractual obligations arising out of or in connection with it are governed by, and construed in accordance with, English law. 

	
 
	
(b)
	
Subject to clause 10(d) below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed, including any dispute as to its existence, validity, interpretation, performance, breach or termination or the consequences of its nullity and any dispute relating to any non-contractual obligations arising out of or in connection with it (a Dispute) and each of the Issuer and any Accountholders in relation to any Dispute submits to the exclusive jurisdiction of the English courts. 

	
 
	
(c)
	
For the purposes of this clause 10 the Issuer waives any objection to the English courts on the grounds that they are an inconvenient or inappropriate forum to settle any Dispute.

	
 
	
(d)
	
To the extent allowed by law, each Accountholder may, in respect of any Dispute or Disputes, take (i) proceedings in any other court with jurisdiction; and (ii) concurrent proceedings in any number of jurisdictions.

	
 
	
(e)
	
The Issuer irrevocably appoints Airbags International Limited at Viking Way, Congleton, Cheshire CW12 1TT as its agent under this Deed for service of process in any proceedings before the English courts in relation to any Dispute and agrees that, in the event of Airbags International Limited being unable or unwilling for any reason so to act, it will immediately appoint another person as its agent for service of process in England in respect of any Dispute.  The Issuer agrees that failure by a process agent to notify it of any process will not invalidate service.  Nothing in this clause shall affect the right to serve process in any other manner permitted by law.

	
 
	
(f)
	
IN WITNESS whereof this Deed has been executed as a deed poll by the Issuer on the date which appears first on page 1.

EXECUTED as a DEED by

AUTOLIV, INC

By: 

Name:

Title:

 

	
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Schedule 4

Form of Guarantee

GUARANTEE of AUTOLIV ASP, INC.

THIS GUARANTEE is given on 26 June 2018 by Autoliv ASP, Inc. (the Guarantor).

WHEREAS:

	
(A)
	
The Guarantor has agreed to guarantee the obligations of Autoliv, Inc. (the Issuer) under (i) the EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes) to be issued by the Issuer pursuant to an Agency Agreement (the Agency Agreement) dated 26 June 2018 between the Issuer, the Guarantor, HSBC Bank plc as Fiscal Agent (the Fiscal Agent) and the other agents named therein and (ii) the Deed of Covenant executed by the Issuer on 26 June 2018 in respect of the Notes (the Deed of Covenant).

	
(B)
	
Terms defined in the Conditions of the Notes (the Conditions), the Agency Agreement and the Deed of Covenant and not otherwise defined in this Guarantee shall have the same meaning when used in this Guarantee.

NOW THIS DEED WITNESSES AS FOLLOWS:

	
1.
	
The Guarantor as primary obligor unconditionally and irrevocably:

	
 
	
(a)
	
guarantees to (i) the holder from time to time of each Note or Coupon and (ii) each Accountholder, by way of continuing guarantee the due and punctual payment of all amounts payable by the Issuer on or in respect of the Note or Coupon (including any premium or additional amounts which may become payable under Condition 8 (Taxation)) and the Deed of Covenant as and when the same shall become due according to the Conditions and the Deed of Covenant; and

	
 
	
(b)
	
agrees that, if and each time that the Issuer fails to make any payments as and when the same become due, the Guarantor will on demand (without requiring the relevant Noteholder, Couponholder or Accountholder first to take steps against the Issuer or any other person) pay to the relevant Noteholder or Couponholder, or as the case may be, the Accountholder the amounts (as to which the certificate of the relevant Noteholder or Couponholder, or as the case may be, the Accountholder shall in the absence of manifest error be conclusive) in the currency in which the amounts are payable by the Issuer under the Notes or the Deed of Covenant.

	
2.
	
If any sum which, although expressed to be payable by the Issuer under the Notes, Coupons or the Deed of Covenant is for any reason (whether or not now existing and whether or not now known or becoming known to the Issuer, the Guarantor or any relevant Noteholder, Couponholder and/or Accountholder) not recoverable from the Guarantor on the basis of a guarantee then (a) it will nevertheless be recoverable from it as if it were the sole principal debtor and will be paid by it to the relevant Noteholder, Couponholder and/or Accountholder on demand, and (b) as a separate and additional liability under this Guarantee the Guarantor agrees, as a primary obligation, to indemnify each relevant Noteholder, Couponholder and each Accountholder in respect of such sum by way of a full indemnity in the manner and currency as is provided for in the Notes and the Deed of Covenant, and to indemnify each relevant Noteholder, Couponholder and each Accountholder against all losses, claims, costs, charges and expenses to which it may be subject or which it may incur in recovering such sum.

 

	
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3.
	
If any payment received by any relevant Noteholder, Couponholder or Accountholder pursuant to the provisions of the Notes, Coupons or the Deed of Covenant shall (whether on the subsequent bankruptcy, insolvency or corporate reorganisation of the Issuer or, without limitation, on any other event) be avoided or set aside for any reason, such payment shall not be considered as discharging or diminishing the liability of the Guarantor and this Guarantee shall continue to apply as if such payment had at all times remained owing by the Issuer and the Guarantor shall indemnify the relevant Noteholders, Couponholders and/or Accountholders (as the case may be) in respect thereof provided that the obligations of the Issuer and/or the Guarantor under this clause 3 shall, as regards each payment made to any relevant Noteholder, Couponholder or Accountholder which is avoided or set aside, be contingent upon such payment being reimbursed to the Issuer or other persons entitled through the Issuer.

	
4.
	
All payments by the Guarantor under this Guarantee shall be made without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature (Taxes) imposed or levied by or on behalf of the any Relevant Jurisdiction (as defined in Condition 8 (Taxation)), unless the withholding or deduction of the Taxes is required by law.  In that event, the Guarantor will pay such additional amounts as may be necessary in order that the net amounts received by the holders of the Notes and Coupons and the Accountholders after the withholding or deduction shall equal the respective amounts which would have been receivable in respect of the Notes or, as the case may be, Coupons, or the Deed of Covenant in the absence of the withholding or deduction; except that no additional amounts shall be payable with respect to any payment in respect of any Note:

	
 
	
(a)
	
the relevant holder or Accountholder of which is liable for such Taxes in respect of such Note or Coupon by reason of his having some connection with United States of America other than by reason of being a relevant holder or Accountholder; or

	
 
	
(b)
	
presented for payment in the United States; or

	
 
	
(c)
	
presented for payment by or on behalf of a holder or Accountholder who would have been able to avoid such withholding or deduction by satisfying any statutory or procedural requirements (including, without limitation, the provision of information or a Internal Revenue Service Form W-8 or Form or W-9 (or a successor form)); or

	
 
	
(d)
	
presented for payment by or on behalf of a holder or Accountholder who would have been able to avoid such withholding or deduction by presenting the relevant Note or Coupon to another Paying Agent in a Member State of the European Union; or

	
 
	
(e)
	
presented for payment more than 30 days after the Relevant Date (as defined in Condition 8 (Taxation)) except to the extent that a relevant holder or Accountholder would have been entitled to additional amounts on presenting the same for payment on the last day of the period of 30 days assuming that day to have been a Presentation Date (as defined in Condition 6 (Payments)).

	
5.
	
The obligations of the Guarantor under this Guarantee shall not be affected by any matter or thing which but for this provision might operate to affect the obligations including, without limitation:

	
 
	
(a)
	
any time or indulgence granted to or composition with the Issuer or any other person;

	
 
	
(b)
	
the taking, variation, renewal or release of remedies or securities against the Issuer or any other person; or 

	
 
	
(c)
	
any unenforceability, invalidity or irregularity.

 

	
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6.
	
Where any discharge (whether in respect of the obligations of the Issuer or any security for the obligations of the Issuer or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be repaid on bankruptcy, liquidation or otherwise without limitation, the liability of the Guarantor under this Guarantee shall continue as if there had been no discharge or arrangement.  The holder of any Note or Coupon or an Accountholder, acting in good faith, shall be entitled to concede or compromise any claim that any payment, security or other disposition is liable to avoidance or repayment.

	
7.
	
The Guarantor will not, and the Guarantor will procure that none of its Subsidiaries (as defined in Condition 4.2 (Interpretation)) will, create or have outstanding any mortgage, charge, lien, pledge or other security interest (each a Security Interest) upon, or with respect to, any of its or their present or future business, undertaking, assets or revenues (including any uncalled capital) to secure any Relevant Indebtedness (as defined in Condition 4.2 (Interpretation)), unless the Guarantor, in the case of the creation of the Security Interest, before or at the same time and, in any other case, promptly, takes any and all action necessary to ensure that (a) all amounts payable by it under this Guarantee are secured by the Security Interest equally and rateably with the Relevant Indebtedness; or (b) such other Security Interest or other arrangement (whether or not it includes the giving of a Security Interest) shall be provided as is approved by an Extraordinary Resolution of the Noteholders; provided that, the foregoing provisions shall not apply to any Security Interest (i) arising by operation of law or (ii) created by an entity which becomes a Subsidiary after the date of creation of such Security Interest where the Security Interest was not created in connection with or in contemplation of such entity becoming a Subsidiary and does not extend to or cover any undertaking, assets or revenues (including any uncalled capital) of the Guarantor or any of its Subsidiaries.

	
8.
	
The Guarantor represents and warrants that:

	
 
	
(a)
	
the obligations of the Guarantor under this Guarantee constitute the direct, unconditional and (subject to the provisions of clause 7) unsecured obligations of the Guarantor and (subject as provided above) rank and will rank pari passu with all other outstanding unsecured and unsubordinated obligations of the Guarantor, present and future, but, in the event of insolvency, only to the extent permitted by applicable laws relating to creditors' rights; and

	
 
	
(b)
	
all necessary governmental consents and authorisations for the giving and implementation of this Guarantee have been obtained.

	
9.
	
Until all amounts which may be or become payable under the Notes, the Coupons and the Deed of Covenant have been irrevocably paid in full, the Guarantor shall not by virtue of this Guarantee be subrogated to any rights of any holder of any Note or Coupon or any Accountholder or claim in competition with such holders against the Issuer.

	
10.
	
This Guarantee shall enure for the benefit of the Noteholders, the Couponholders and the Accountholders and shall be deposited with and held by the Fiscal Agent.

	
11.
	
If any provision in or obligation under this Guarantee is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction, that will not affect or impair (i) the validity, legality or enforceability under the law of that jurisdiction of any other provision in or obligation under this Guarantee, or (ii) the validity, legality or enforceability under the law of any other jurisdiction of that or any other provision in or obligation under this Guarantee.

	
12.
	
This Guarantee and any non-contractual obligations arising out of or in connection with it are governed by, and construed in accordance with, English law.

 

	
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13.
	
(a)     Subject to subparagraph (c) below, the English courts have exclusive jurisdiction to settle any dispute arising out of or in connection with this Guarantee, including any dispute as to its existence, validity, interpretation, performance, breach or termination or the consequences of its nullity and any dispute relating to any non-contractual obligations arising out of or in connection with it (a Dispute) and each of the Guarantor and any Noteholders, Couponholders or Accountholders in relation to any Dispute submits to the exclusive jurisdiction of the English courts.

	
 
	
(b)
	
For the purposes of subparagraphs (a) and (c), the Guarantor waives any objection to the English courts on the grounds that they are an inconvenient or inappropriate forum to settle any Dispute.

	
 
	
(c)
	
To the extent allowed by law, the Noteholders, the Couponholders and the Accountholders may, in respect of any Dispute or Disputes, take (i) proceedings in any other court with jurisdiction and (ii) concurrent proceedings in any number of jurisdictions.

	
 
	
(d)
	
The Guarantor irrevocably appoints Airbags International Limited at Viking Way, Congelton, Chesire, CW12 1TT as its agent under this Guarantee for service of process in any proceedings before the English courts in relation to any Dispute and agrees that in the event of Airbags International Limited being unable or unwilling for any reason so to act, it will immediately appoint another person as its agent for service of process in England in respect of any Dispute.  The Guarantor agrees that failure by a process agent to notify it of any process will not invalidate service.  Nothing in this sub-paragraph shall affect the right to serve process in any other manner permitted by law. 

	
 
	
(e)
	
IN WITNESS whereof this Guarantee has been executed as a deed poll by the Guarantor.

 

	
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Executed as a deed by AUTOLIV ASP, INC.
	
)
	
 

	
acting by [NAME OF DIRECTOR]
	
)
	
...................................

	
and [NAME OF DIRECTOR/SECRETARY]
	
)
	
Director

	
 
	
 
	
 

	
 
	
 
	
 

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

	
 
	
 
	
Director/Secretary

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

	
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Schedule 5

Form of Put Notice

AUTOLIV, INC

(incorporated with limited liability under the laws of State of Delaware, U.S.A.)

EUR 500,000,000

0.750 per cent. Guaranteed Notes due 2023

unconditionally and irrevocably guaranteed by

as to payment of principal, premium (if any) and interest by

AUTOLIV ASP, INC.

(incorporated with limited liability under the laws of State of Indiana, U.S.A.)

By depositing this duly completed Notice with any Paying Agent for the EUR 500,000,000 0.750 per cent. Guaranteed Notes due 2023 (the Notes) of Autoliv, Inc. (the Issuer), the undersigned holder of the Notes which are surrendered with this Notice and referred to below irrevocably exercises its option to have [the full.........]1  principal amount of the Notes redeemed in accordance with Condition 7.5 (Redemption and Purchase – Redemption at the Option of the Holders) on [●].

This Notice relates to Notes in the aggregate principal amount of................bearing the following serial numbers:

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

If the Notes referred to above are to be returned2 to the undersigned under clause 9.4 of the Agency Agreement, they should be returned by uninsured post to:

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

Payment Instructions

Please make payment in respect of the above-mentioned Notes by cheque posted to the above address/transfer to the following bank account

 

							
	
Bank:
	
 
	
 
	
 
	
Branch Address:
	
 
	
 

	
Branch Code:
	
 
	
 
	
 
	
Account Number:
	
 
	
 

	
Signature of holder:
	
 
	
 
	
 
	
 
	
 
	
 

 

[To be completed by recipient Paying Agent]

[Details of missing unmatured Coupons.............................3]

Received by:................................................

[Signature and stamp of Paying Agent]

At its office at:.............................    On:    .......................

 

	
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NOTES:

	
1.
	
Complete as appropriate.

	
2.
	
The Agency Agreement provides that Notes so returned will be sent by post, uninsured and at the risk of the Noteholder, unless the Noteholder otherwise requests and pays the costs of such insurance to the relevant Paying Agent at the time of depositing the Note referred to above.

	
3.
	
This is only relevant for Notes in definitive form. 

N.B.Notwithstanding the deposit of any Notes with the Paying Agent, the Paying Agent acts solely as an agent of the Issuer and the Guarantor and will not assume any obligation or responsibility towards or relationship of agency or trust for or with any of the owners or holders of the Notes or Coupons or any other third party.

This Put Notice is not valid unless paragraphs requiring completion are duly completed and it is signed.  Once validly given, this Put Notice may not be withdrawn without the prior consent of the Issuer.

 

	
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Schedule 6

Provisions for Meetings of Noteholders

DEFINITIONS

	
1.
	
As used in this Schedule, the following expressions have the following meanings unless the context otherwise requires:

Block Voting Instruction means an English language document issued by a Paying Agent in which:

	
 
	
(a)
	
it is certified that on the date thereof Notes (whether in definitive form or represented by a Global Note) (not being Notes in respect of which a Voting Certificate has been issued and is outstanding in respect of the meeting specified in such Block Voting Instruction) have been deposited with such Paying Agent or (to the satisfaction of such Paying Agent) are held to its order or under its control or are blocked in an account with a Clearing System and that no such Notes will cease to be so deposited or held or blocked until the first to occur of:

	
 
	
(i)
	
the conclusion of the meeting specified in such Block Voting Instruction; and

	
 
	
(ii)
	
the surrender to the Paying Agent, not less than 48 Hours before the time for which such meeting is convened, of the receipt issued by such Paying Agent in respect of each such deposited Note which is to be released or (as the case may require) the Notes ceasing with the agreement of the Paying Agent to be held to its order or under its control or so blocked and the giving of notice by the Paying Agent to the Issuer in accordance with paragraph 3(e) of the necessary amendment to the Block Voting Instruction;

	
 
	
(b)
	
it is certified that each holder of such Notes has instructed such Paying Agent that the vote(s) attributable to the Notes so deposited or held or blocked should be cast in a particular way in relation to the resolution(s) to be put to such meeting and that all such instructions are, during the period commencing 48 Hours prior to the time for which such meeting is convened and ending at the conclusion or adjournment thereof, neither revocable nor capable of amendment;

	
 
	
(c)
	
the aggregate principal amount of the Notes so deposited or held or blocked is listed distinguishing with regard to each such resolution between those in respect of which instructions have been given that the votes attributable thereto should be cast in favour of the resolution and those in respect of which instructions have been so given that the votes attributable thereto should be cast against the resolution; and

	
 
	
(d)
	
one or more persons named in such Block Voting Instruction (each hereinafter called a proxy) is or are authorised and instructed by such Paying Agent to cast the votes attributable to the Notes so listed in accordance with the instructions referred to in (c) above as set out in such Block Voting Instruction;

Clearing System means Euroclear and/or Clearstream, Luxembourg and includes, in respect of any Note, any clearing system on behalf of which such Note is held or which is the bearer or holder of a Note, in either case whether alone or jointly with any other Clearing System(s).  For the avoidance of doubt, the provisions of clause 1.2(h) shall apply to this definition;

 

	
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Eligible Person means any one of the following persons who shall be entitled to attend and vote at a meeting:

	
 
	
(a)
	
a holder of a Note in definitive form;

	
 
	
(b)
	
a bearer of any Voting Certificate; 

	
 
	
(c)
	
a proxy specified in any Block Voting Instruction;

Extraordinary Resolution means:

	
 
	
(a)
	
a resolution passed at a meeting duly convened and held in accordance with the provisions of this Schedule by a majority consisting of not less than three-fourths of the Eligible Persons voting thereon upon a show of hands or, if a poll is duly demanded, by a majority consisting of not less than three-fourths of the votes cast on such poll; 

	
 
	
(b)
	
a resolution in writing signed by or on behalf of all the Noteholders/the holders of not less than three-fourths in principal amount of the Notes for the time being outstanding (a Written Resolution) which resolution may be contained in one document or in several documents in like form each signed by or on behalf of one or more of the holders; or

	
 
	
(c)
	
consent given by way of electronic consents through the relevant Clearing System(s) (in a form satisfactory to the Fiscal Agent) by or on behalf of the holders of not less than three-fourths in principal amount of the Notes for the time being outstanding;

Voting Certificate means an English language certificate issued by a Paying Agent in which it is stated:

	
 
	
(a)
	
that on the date thereof Notes (whether in definitive form or represented by a Global Note) (not being Notes in respect of which a Block Voting Instruction has been issued and is outstanding in respect of the meeting specified in such Voting Certificate) were deposited with such Paying Agent or (to the satisfaction of such Paying Agent) are held to its order or under its control or are blocked in an account with a Clearing System and that no such Notes will cease to be so deposited or held or blocked until the first to occur of:

	
 
	
(i)
	
the conclusion of the meeting specified in such Voting Certificate; and

	
 
	
(ii)
	
the surrender of the Voting Certificate to the Paying Agent who issued the same; and

	
 
	
(b)
	
that the bearer thereof is entitled to attend and vote at such meeting in respect of the Notes represented by such Voting Certificate;

24 Hours means a period of 24 hours including all or part of a day on which banks are open for business both in the place where the relevant meeting is to be held and in each of the places where the Paying Agents have their specified offices (disregarding for this purpose the day on which the meeting is to be held) and that period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included all or part of a day on which banks are open for business in all of the places where the Paying Agents have their specified offices; and

48 Hours means a period of 48 hours including all or part of two days on which banks are open for business both in the place where the relevant meeting is to be held and in each of the places where the Paying Agents have their specified offices (disregarding for this purpose the day on which the meeting is to be held) and that period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included all or part of two days on which banks are open for business in all of the places where the Paying Agents have their specified offices.

 

	
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For the purposes of calculating a period of Clear Days in relation to a meeting, no account shall be taken of the day on which the notice of such meeting is given (or in the case of an adjourned meeting, the day on which the meeting to be adjourned is held) or the day on which such meeting is held.

All references in this Schedule to a "meeting" shall, where the context so permits, include any relevant adjourned meeting.

EVIDENCE OF ENTITLEMENT TO ATTEND AND VOTE

	
2.
	
A holder of a Note (whether in definitive form or represented by a Global Note) may require the issue by any Paying Agent of Voting Certificates and Block Voting Instructions in accordance with the terms of paragraph 3. 

For the purposes of paragraph 3 below the Fiscal Agent and each Paying Agent shall be entitled to rely, without further enquiry, on any information or instructions received from a Clearing System and shall have no liability to any Noteholder or other person for any loss, damage, cost, claim or other liability occasioned by its acting in reliance thereon, nor for any failure by a Clearing System to deliver information or instructions to the Fiscal Agent or any Paying Agent.

The holder of any Voting Certificate or the proxies named in any Block Voting Instruction shall for all purposes in connection with the relevant meeting be deemed to be the holder of the Notes to which such Voting Certificate or Block Voting Instruction relates and the Paying Agent with which such Notes have been deposited or the person holding Notes to the order or under the control of such Paying Agent or the Clearing System in which such Notes have been blocked shall be deemed for such purposes not to be the holder of those Notes.

PROCEDURE FOR ISSUE OF VOTING CERTIFICATES, BLOCK VOTING INSTRUCTIONS AND PROXIES

	
3.
	
(a)Definitive Notes - not held in a Clearing System

If Notes have been issued in definitive form and are not held in an account with any Clearing System, the Fiscal Agent may from time to time prescribe further regulations (in accordance with paragraph 22) to enable the holders of such Notes to attend and/or vote at a meeting in respect of such Notes.  

	
 
	
(b)
	
Global Notes and definitive Notes held in a Clearing System – Voting Certificate

A holder of a Note (not being a Note in respect of which instructions have been given to the Fiscal Agent in accordance with paragraph 3(c)) represented by a Global Note or which is in definitive form and is held in an account with any Clearing System may procure the delivery of a Voting Certificate in respect of such Note by giving notice to the Clearing System through which such Noteholder's interest in the Note is held specifying by name a person (an Identified Person) (which need not be the Noteholder himself) to collect the Voting Certificate and attend and vote at the meeting.  The relevant Voting Certificate will be made available at or shortly prior to the commencement of the meeting by the Fiscal Agent against presentation by such Identified Person of the form of identification previously notified by such holder to the Clearing System.  The Clearing System may prescribe forms of identification (including, without limitation, a passport or driving licence) which it considers appropriate for these purposes.  Subject to receipt by the Fiscal Agent from the Clearing System, no later than 24 Hours before the time for which such meeting is convened, of notification of the principal amount of the Notes to be represented by any such Voting Certificate and the form of identification against presentation of which such Voting Certificate should be released, the Fiscal Agent shall, without any obligation to make further enquiry, make available Voting Certificates against presentation of the form of identification corresponding to that notified.

 

	
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(c)
	
Global Notes and definitive Notes held in a Clearing System – Block Voting Instruction

A holder of a Note (not being a Note in respect of which a Voting Certificate has been issued) represented by a Global Note or which is in definitive form and is held in an account with any Clearing System may require the Fiscal Agent to issue a Block Voting Instruction in respect of such Note by first instructing the Clearing System through which such Noteholder's interest in the Note is held to procure that the votes attributable to such Note should be cast at the meeting in a particular way in relation to the resolution or resolutions to be put to the meeting.  Any such instruction shall be given in accordance with the rules of the Clearing System then in effect.  Subject to receipt by the Fiscal Agent, no later than 24 Hours prior to the time for which such meeting is convened, of notification of the principal amount of the Notes in respect of which instructions have been given and the manner in which the votes attributable to such Notes should be cast, the Fiscal Agent shall, without any obligation to make further enquiry, appoint a proxy to attend the meeting and cast votes in accordance with those instructions.

	
 
	
(d)
	
Each Block Voting Instruction shall be deposited by the relevant Paying Agent at the place specified by the Fiscal Agent for the purpose not less than 24 Hours before the time appointed for holding the meeting at which the proxy or proxies named in the Block Voting Instruction proposes to vote, and in default the Block Voting Instruction shall not be treated as valid unless the Chairman of the meeting decides otherwise before such meeting proceeds to business.  A copy of each Block Voting Instruction shall (if so requested by the Issuer) be deposited with the Issuer before the commencement of the meeting but the Issuer shall not as a result be obliged to investigate or be concerned with the validity of or the authority of the proxy or proxies named in such Block Voting Instruction.

	
 
	
(e)
	
Any vote given in accordance with the terms of a Block Voting Instruction shall be valid notwithstanding the previous revocation or amendment of the Block Voting Instruction or of any of the instructions of the relevant Noteholder or the relevant Clearing System (as the case may be) pursuant to which it was executed provided that no intimation in writing of such revocation or amendment has been received from the relevant Paying Agent by the Issuer at its registered office by the time being 24 Hours before the time appointed for holding the meeting at which the Block Voting Instruction is to be used.

CONVENING OF MEETINGS, QUORUM AND ADJOURNED MEETINGS

	
4.
	
The Issuer or the Guarantor may at any time, and the Issuer shall upon a requisition in writing in the English language signed by the Noteholders of not less than 10 per cent. in principal amount of the Notes for the time being outstanding, convene a meeting and if the Issuer makes default for a period of seven days in convening such a meeting the same may be convened by the relevant Noteholders.  Whenever the Issuer or the Guarantor is about to convene any such meeting the Issuer or the Guarantor, as the case may be, shall forthwith give notice in writing to the Fiscal Agent of the day, time and place of the meeting and of the nature of the business to be transacted at the meeting.  Every such meeting shall be held at such time and place approved by the Fiscal Agent.

	
5.
	
At least 21 Clear Days' notice specifying the place, day and hour of the meeting shall be given to the Noteholders prior to any meeting in the manner provided by Condition 12 (Notices).  Such notice, which shall be in the English language, shall state generally the nature of the business to be transacted at the meeting thereby convened and, where an Extraordinary Resolution will be proposed at the meeting, shall either specify in such notice the terms of such resolution or state fully the effect on the Noteholders of such resolution, if passed.  Such notice shall include statements as to the manner in which Noteholders may arrange for Voting Certificates or Block Voting Instructions to be issued.  A copy of the notice shall be sent by post to the Issuer (unless the meeting is convened by the Issuer) and to the Guarantor (unless the meeting is convened by the Guarantor).

 

	
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6.
	
The person (who may but need not be a Noteholder) nominated in writing by the Issuer shall be entitled to take the chair at the relevant meeting but if no such nomination is made or if at any meeting the person nominated shall not be present within 15 minutes after the time appointed for holding the meeting the Noteholders present shall choose one of their number to be Chairman failing which the Issuer may appoint a Chairman.  The Chairman of an adjourned meeting need not be the same person as was Chairman of the meeting from which the adjournment took place.

	
7.
	
At any such meeting one or more Eligible Persons present and holding or representing in the aggregate more than 50 per cent. in principal amount of the Notes for the time being outstanding shall (subject as provided below) form a quorum for the transaction of business (including the passing of an Extraordinary Resolution) PROVIDED THAT at any meeting the business of which includes any Basic Terms Modification (which shall only be capable of being effected after having been approved by Extraordinary Resolution) the quorum shall be one or more Eligible Persons present and holding or representing in the aggregate not less than two-thirds of the principal amount of the Notes for the time being outstanding.  No business (other than the choosing of a Chairman) shall be transacted at any meeting unless the requisite quorum be present at the commencement of the relevant business.

	
8.
	
If within 15 minutes (or such longer period not exceeding 30 minutes as the Chairman may decide) after the time appointed for such meeting a quorum is not present for the transaction of any particular business, then, subject and without prejudice to the transaction of the business (if any) for which a quorum is present, the meeting shall if convened upon the requisition of Noteholders be dissolved.  In any other case it shall stand adjourned for such period being not less than 13 Clear Days nor more than 42 Clear Days and to such place as may be appointed by the Chairman either at or subsequent to such meeting and approved by the Fiscal Agent.  If within 15 minutes (or a longer period not exceeding 30 minutes as the Chairman may decide) after the time appointed for any adjourned meeting a quorum is not present for the transaction of any particular business, then, subject and without prejudice to the transaction of the business (if any) for which a quorum is present, the Chairman may either dissolve such meeting or adjourn the same for such period, being not less than 13 Clear Days (but without any maximum number of Clear Days) and to such place as may be appointed by the Chairman either at or subsequent to such adjourned meeting and approved by the Fiscal Agent, and the provisions of this sentence shall apply to all further adjourned such meetings.

	
9.
	
At any adjourned meeting one or more Eligible Persons present (whatever the principal amount of the Notes so held or represented by them) shall (subject as provided below) form a quorum and shall have power to pass any resolution and to decide upon all matters which could properly have been dealt with at the meeting from which the adjournment took place had the requisite quorum been present PROVIDED THAT at any adjourned meeting the quorum for the transaction of business comprising any Basic Terms Modification shall be one or more Eligible Persons present and holding or representing in the aggregate not less than one‐third of the principal amount of the Notes for the time being outstanding.

	
10.
	
Notice of any adjourned meeting shall be given in the same manner as notice of an original meeting but as if 10 were substituted for 21 in paragraph 5 and such notice shall state the required quorum.

CONDUCT OF BUSINESS AT MEETINGS

	
11.
	
Every question submitted to a meeting shall be decided in the first instance by a show of hands.  A poll may be demanded (before or on the declaration of the result of the show of hands) by the Chairman, the Issuer, the Guarantor or any Eligible Person (whatever the amount of the Notes so held or represented by him).

	
12.
	
At any meeting, unless a poll is duly demanded, a declaration by the Chairman that a resolution has been carried or carried by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution.

 

	
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13.
	
Subject to paragraph 15, if at any such meeting a poll is so demanded it shall be taken in such manner and, subject as provided below, either at once or after an adjournment as the Chairman directs and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded as at the date of the taking of the poll.  The demand for a poll shall not prevent the continuance of the meeting for the transaction of any business other than the motion on which the poll has been demanded.

	
14.
	
The Chairman may, with the consent of (and shall if directed by) any such meeting, adjourn the same from time to time and from place to place, but no business shall be transacted at any adjourned meeting except business which might lawfully have been transacted at the meeting from which the adjournment took place.

	
15.
	
Any poll demanded at any such meeting on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment.

	
16.
	
Any director or officer of the Issuer or, as the case may be, the Guarantor, their lawyers and financial advisers and any director or officer of any of the Paying Agents may attend and speak at any meeting.  Save as aforesaid, no person shall be entitled to attend and speak nor shall any person be entitled to vote at any meeting unless he is an Eligible Person.  No person shall be entitled to vote at any meeting in respect of Notes which are deemed to be not outstanding by virtue of the proviso to the definition of "outstanding" in clause 1.

	
17.
	
At any meeting:

	
 
	
(a)
	
on a show of hands every Eligible Person present shall have one vote; and

	
 
	
(b)
	
on a poll every Eligible Person present shall have one vote in respect of each EUR1,000, in principal amount of the Notes held or represented by such Eligible Person.

Without prejudice to the obligations of the proxies named in any Block Voting Instruction, any Eligible Person entitled to more than one vote need not use all his votes or cast all the votes to which he is entitled in the same way.

	
18.
	
The proxies named in any Block Voting Instruction need not be holders.  Nothing herein shall prevent any of the proxies named in any Block Voting Instruction from being a director, officer or representative of or otherwise connected with the Issuer.

	
19.
	
The Noteholders shall in addition to the powers set out above have the following powers exercisable only by Extraordinary Resolution (subject, in the case of an Extraordinary Resolution to be proposed at a meeting, to the provisions relating to quorum contained in paragraphs 7 and 9) namely:

	
 
	
(a)
	
power to sanction any compromise or arrangement proposed to be made between the Issuer the Guarantor and the Noteholders and Couponholders or any of them;

	
 
	
(b)
	
power to approve any abrogation, modification, compromise or arrangement in respect of the rights of the Noteholders and Couponholders against the Issuer or the Guarantor against any other or others of them or against any of their property whether such rights arise under this Agreement, the Notes or the Coupons or otherwise;

	
 
	
(c)
	
power to agree to any modification of the provisions contained in this Agreement or the Conditions, the Notes, the Guarantee or the Deed of Covenant which is proposed by the Issuer or the Guarantor;

	
 
	
(d)
	
power to give any authority or sanction which under the provisions of this Schedule or the Notes is required to be given by Extraordinary Resolution;

 

	
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(e)
	
power to appoint any persons (whether Noteholders or not) as a committee or committees to represent the interests of the Noteholders and to confer upon such committee or committees any powers or discretions which the Noteholders could themselves exercise by Extraordinary Resolution;

	
 
	
(f)
	
power to approve any scheme or proposal for the exchange or sale of the Notes for, or the conversion of the Notes into, or the cancellation of the Notes in consideration of, shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities of the Issuer or the Guarantor or any other company formed or to be formed, or for or into or in consideration of cash, or partly for or into or in consideration of such shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities as stated above and partly for or into or in consideration of cash; and

	
 
	
(g)
	
power to approve the substitution of any entity for the Issuer and/or the Guarantor (or any previous substitute) as principal debtor and/or guarantor, as the case may be.

	
20.
	
Any Extraordinary Resolution (i) passed at a meeting of the Noteholders duly convened and held (ii) passed as an Extraordinary Resolution in writing or (iii) passed by way of electronic consents given by holders through the relevant Clearing System(s), in accordance with the provisions of this Schedule shall be binding upon all the Noteholders whether present or not or whether or not represented at any meeting and whether or not voting on such Extraordinary Resolution and upon all Couponholders and each of them shall be bound to give effect to the resolution accordingly and the passing of any such Extraordinary Resolution shall be conclusive evidence that the circumstances justify its passing.  Notice of the result of voting on any Extraordinary Resolution duly considered by the Noteholders shall be published in accordance with Condition 12 (Notices) by the Issuer within 14 days of the result being known PROVIDED THAT non-publication of such notice shall not invalidate such result.

	
21.
	
Minutes of all resolutions and proceedings at every meeting shall be made and entered in books to be from time to time provided for that purpose by the Issuer and any such minutes, if purporting to be signed by the Chairman of the meeting at which such resolutions were passed or proceedings transacted shall be conclusive evidence of the matters contained in them and, until the contrary is proved, every such meeting in respect of the proceedings of which minutes have been made shall be deemed to have been duly held and convened and all resolutions passed or proceedings transacted at the meeting to have been duly passed or transacted.

	
22.
	
Subject to all other provisions contained in this Schedule, the Fiscal Agent may without the consent of the Issuer, the Guarantor, the Noteholders or the Couponholders prescribe any other regulations regarding the calling and/or the holding of meetings of Noteholders and attendance and voting at them as the Fiscal Agent may in its sole discretion think fit (including, without limitation, the substitution for periods of 24 hours and 48 hours referred to in this Schedule of shorter periods).  Any regulations prescribed by the Fiscal Agent may but need not reflect the practices and facilities of any relevant clearing system.  Notice of any other regulations may be given to Noteholders in accordance with Condition 12 (Notices) and/or at the time of service of any notice convening a meeting.

 

	
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Schedule 7

Additional Duties of the Fiscal Agent

The Fiscal Agent and the Issuer will comply with the following provisions:

	
1.
	
The Fiscal Agent will inform each of Euroclear and Clearstream, Luxembourg (the ICSDs), through the common service provider appointed by the ICSDs to service the Notes (the CSP), of the initial issue outstanding amount (IOA) for the Notes on or prior to the issue date of the Notes.

	
2.
	
If any event occurs that requires a mark up or mark down of the records which an ICSD holds for its customers to reflect such customers' interest in the Notes, the Fiscal Agent will (to the extent known to it) promptly provide details of the amount of such mark up or mark down, together with a description of the event that requires it, to the ICSDs (through the CSP) to ensure that the IOA of the Notes remains at all times accurate.

	
3.
	
The Fiscal Agent will at least once every month reconcile its record of the IOA of the Notes with information received from the ICSDs (through the CSP) with respect to the IOA maintained by the ICSDs for the Notes and will promptly inform the ICSDs (through the CSP) of any discrepancies.

	
4.
	
The Fiscal Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the IOA of the Notes.

	
5.
	
The Fiscal Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid by it under the Notes (or, where the Notes provide for delivery of assets other than cash, of the assets so delivered).

	
6.
	
The Fiscal Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) notice of any changes to the Notes that will affect the amount of, or date for, any payment due under the Notes.

	
7.
	
The Fiscal Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) copies of all information that is given to the holders of the Notes.

	
8.
	
The Fiscal Agent will promptly pass on to the Issuer all communications it receives from the ICSDs directly or through the CSP relating to the Notes.

	
9.
	
The Fiscal Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Notes when due.

 

 

 

	
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Signatories

 

	
AUTOLIV, INC.

	
 

	
By:
	
 
	
/s/ Mats Backman

 

	
AUTOLIV ASP, INC.

	
 

	
By:
	
 
	
/s/ Christian Hanke

 

	
HSBC BANK PLC

	
 

	
By:
	
 
	
/s/ Jenny Pennell

 

	
0013117-0002372 ICM:29837691.10alv-ex104_501.htm

Exhibit 10.4

 

EXECUTION VERSION

FACILITIES AGREEMENT

24 May 2018

US$800,000,000

for

AUTOLIV, INC., and AUTOLIV ASP, INC.

with

J.P. MORGAN SECURITIES PLC and SKANDINAVISKA ENSKILDA BANKEN AB (publ)

as active bookrunners and co-ordinators

and

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

as Facility Agent

	

 

Allen & Overy LLP

 

	
 
	

	
 

 

 

Contents

 

	
Clause
	
 
	
Page

	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
Interpretation
	
 
	
1

	
2.
	
 
	
Facilities
	
 
	
17

	
3.
	
 
	
Purpose
	
 
	
20

	
4.
	
 
	
Conditions Precedent
	
 
	
20

	
5.
	
 
	
Loans
	
 
	
21

	
6.
	
 
	
Certain Funds
	
 
	
22

	
7.
	
 
	
Repayment
	
 
	
24

	
8.
	
 
	
Prepayment and Cancellation
	
 
	
24

	
9.
	
 
	
Interest Periods
	
 
	
28

	
10.
	
 
	
Interest
	
 
	
29

	
11.
	
 
	
Changes to the Calculation of Interest
	
 
	
30

	
12.
	
 
	
Optional Currencies
	
 
	
31

	
13.
	
 
	
Payments
	
 
	
34

	
14.
	
 
	
Taxes
	
 
	
37

	
15.
	
 
	
Increased Costs
	
 
	
43

	
16.
	
 
	
Illegality
	
 
	
44

	
17.
	
 
	
Guarantee
	
 
	
44

	
18.
	
 
	
Representations and Warranties
	
 
	
49

	
19.
	
 
	
Undertakings
	
 
	
53

	
20.
	
 
	
Default
	
 
	
62

	
21.
	
 
	
The Facility Agent and the Co-ordinators
	
 
	
65

	
22.
	
 
	
Fees
	
 
	
73

	
23.
	
 
	
Expenses
	
 
	
75

	
24.
	
 
	
Stamp Duties
	
 
	
75

	
25.
	
 
	
Indemnities
	
 
	
75

	
26.
	
 
	
Evidence and Calculations
	
 
	
76

	
27.
	
 
	
Amendments and Waivers
	
 
	
76

	
28.
	
 
	
Changes to the Parties
	
 
	
79

	
29.
	
 
	
Disclosure of Information
	
 
	
82

	
30.
	
 
	
Confidentiality of Funding Rates and Reference Bank Quotations
	
 
	
84

	
31.
	
 
	
Set-Off
	
 
	
86

	
32.
	
 
	
Pro Rata Sharing
	
 
	
86

	
33.
	
 
	
Severability
	
 
	
87

	
34.
	
 
	
Counterparts
	
 
	
87

	
35.
	
 
	
Notices
	
 
	
87

	
36.
	
 
	
Language
	
 
	
89

	
37.
	
 
	
Jurisdiction
	
 
	
90

	
38.
	
 
	
Governing Law
	
 
	
91

	
39.
	
 
	
Integration
	
 
	
91

	
40.
	
 
	
Waiver of immunity
	
 
	
91

	
41.
	
 
	
Waiver of Jury Trial
	
 
	
91

	
42.
	
 
	
USA Patriot Act
	
 
	
92

 

	
 

	
0010023-0003304 BK:44601953.9
	
 
	
 

 

 

 

	
Schedule

	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
Commitments
	
 
	
93

	
2.
	
 
	
Conditions Precedent Documents
	
 
	
94

	
3.
	
 
	
Form of Request
	
 
	
96

	
4.
	
 
	
Form of Novation Certificate
	
 
	
97

	
5.
	
 
	
Form of Compliance Certificate
	
 
	
98

	
6.
	
 
	
Form of Increase Confirmation
	
 
	
99

	
7.
	
 
	
Form of Extension Request
	
 
	
101

 

 

 

	
 

	
0010023-0003304 BK:44601953.9
	
 
	
 

 

	
 

 

THIS AGREEMENT is dated 24  May 2018 and is made BETWEEN:

	
(1)
	
AUTOLIV, INC. (incorporated under the laws of the State of Delaware, USA) (in this capacity, the Parent);

	
(2)
	
AUTOLIV, INC. (incorporated under the laws of the State of Delaware, USA) and AUTOLIV ASP, INC. (incorporated under the laws of the State of Indiana, USA) (each a Guarantor and together, the Guarantors);

	
(3)
	
AUTOLIV, INC. (incorporated under the laws of the State of Delaware, USA) (in this capacity, the Borrower);

	
(4)
	
J.P. MORGAN SECURITIES PLC and SKANDINAVISKA ENSKILDA BANKEN AB (publ) as active bookrunners and co-ordinators (the Co-ordinators);

	
(5)
	
THE PERSONS NAMED ON THE SIGNATURE PAGES TO THIS AGREEMENT as mandated lead arrangers (the Mandated Lead Arrangers);

	
(6)
	
THE FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the Original Lenders); and

	
(7)
	
SKANDINAVISKA ENSKILDA BANKEN AB (publ) as facility agent (the Facility Agent).

IT IS AGREED as follows:

	
1.
	
Interpretation

	
1.1
	
Definitions

In this Agreement:

Acceptable Bank means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of A- or higher by Standard & Poor's Rating Services or Fitch Ratings Ltd or A3 or higher by Moody's Investor Services Limited or a comparable rating from an internationally recognised credit rating agency.

Affiliate means a Subsidiary or a holding company of a person or any other Subsidiary of that holding company.

AFM means The Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten).

Available Commitment means a Lender's Commitment minus:

	
 
	
(a)
	
the Original Dollar Amount of its participation in any outstanding Loans; and

	
 
	
(b)
	
in relation to any proposed drawdown, the Original Dollar Amount of its participation in any Loans that are due to be made on or before the proposed Drawdown Date, 

other than that Lender's participation in any Loans that are due to be repaid or prepaid on or before the proposed Drawdown Date.

Availability Period means the period from and including the date of this Agreement to and including the date falling four months after the date of this Agreement.

	
 

	
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Basel II means the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel II: 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 III means:

	
 
	
(a)
	
the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated; 

	
 
	
(b)
	
the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

	
 
	
(c)
	
any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III".

Board means the Board of Governors of the Federal Reserve System of the United States of America or any successor thereof.

Break Costs means the amount (if any) by which:

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

exceeds:

	
 
	
(b)
	
the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank 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 a Sunday):

	
 
	
(a)
	
on which banks are open for general business in:

	
 
	
(i)
	
London, Stockholm and New York; and

	
 
	
(ii)
	
in relation to a transaction involving an Optional Currency other than Sterling, the principal financial centre of the jurisdiction of that Optional Currency; and

	
 
	
(b)
	
in relation to a transaction involving Euros, which is a TARGET Day.

Certain Funds Period has the meaning given to it in Clause 6 (Certain Funds).

	
 

	
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Change in Law means the occurrence, after the date of this Agreement, of any of the following: 

	
 
	
(a)
	
the adoption or taking effect of any law, rule, regulation or treaty; 

	
 
	
(b)
	
any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority; 

	
 
	
(c)
	
the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; or 

	
 
	
(d)
	
the implementation or application of or compliance with Basel III or CRD IV or any other law or regulation which implements Basel III or CRD IV (whether such implementation, application or compliance is by a Governmental Authority, Finance Party or any of its Affiliates.

Commitment means:

	
 
	
(a)
	
in relation to a Lender which is a Lender on the date of this Agreement, the aggregate of the amounts in US Dollars set opposite its name in Schedule 1 and the amount of any other Lender's Commitment acquired by it under Clause 28 (Changes to the Parties) or assumed by it in accordance with Clause 2.6 (Increase); and

	
 
	
(b)
	
in relation to a Lender which becomes a Lender after the date of this Agreement, the amount of any other Lender's Commitment acquired by it under Clause 28 (Changes to the Parties) or assumed by it in accordance with Clause 2.6 (Increase),

to the extent not cancelled, reduced or transferred under this Agreement.

Compliance Certificate means a certificate substantially in the form set out in Schedule 5 (Form of Compliance Certificate).

CRD IV means:

	
 
	
(a)
	
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms; and

	
 
	
(b)
	
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms,

and as either of these may be amended, supplemented or restated from time to time.

Dangerous Substance means any radioactive emissions and any natural or artificial substance (whether in solid or liquid form or in the form of a gas or vapour and whether alone or in combination with any other substance) capable of causing harm to man or any other living organism or damaging the environment or public health or welfare including but not limited to any controlled, special, hazardous, toxic, radioactive or dangerous waste.

DCB means The Dutch Central Bank (De Nederlandsche Bank N.V.).

Default means an Event of Default or an event which, with the giving of notice, lapse of time, determination of materiality or fulfilment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default.

	
 

	
0010023-0003304 BK:44601953.9
	
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Defaulting Lender means any Lender:

	
 
	
(a)
	
which has failed to make its participation in a Loan available or has notified the Facility Agent that it will not make its participation in a Loan available by the Drawdown Date of that Loan in accordance with Clause 5.3 (Advance of Loans);

	
 
	
(b)
	
which has otherwise rescinded or repudiated a Finance Document; or

	
 
	
(c)
	
with respect to which an Insolvency Event has occurred and is continuing, 

unless, in the case of paragraph (a) above:

	
 
	
(i)
	
its failure to pay is caused by:

	
 
	
(A)
	
administrative or technical error; or

	
 
	
(B)
	
a Disruption Event; and,

payment is made within three Business Days of its due date; or

	
 
	
(ii)
	
the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

DFSA means The Dutch Financial Supervision Act (Wet op het financieel toezicht, Wft) and all rules promulgated thereunder and pursuant thereto as well as communications and published guidelines of the DCB and the AFM.

Disruption Event means either or both of:

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

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

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

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

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

Drawdown Date means the date of the advance of a Loan.

Environmental Claim means any claim by any person as a result of or in connection with any violation of Environmental Law or any Environmental Contamination which could give rise to any remedy or penalty (whether interim or final) or liability for any Obligor or any Finance Party which could reasonably be expected to have a material adverse effect.

	
 

	
0010023-0003304 BK:44601953.9
	
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Environmental Contamination means each of the following and their consequences:

	
 
	
(a)
	
any release, emission, leakage, or spillage of any Dangerous Substance into any part of the environment; or

	
 
	
(b)
	
any accident, fire, explosion or sudden event which is directly or indirectly caused by or attributable to any Dangerous Substance; or

	
 
	
(c)
	
any other pollution of the environment.

Environmental Law means any national or supranational law, regulation or directive concerning the protection of human health or the environment or concerning Dangerous Substances.

Environmental License means any authorisation by any Environmental Law.

ERISA means the United States Employee Retirement Income Security Act of 1974, as amended.

ERISA Affiliate means each trade or business, whether or not incorporated, that would be treated as a single employer with any Obligor under section 414 of the US Code.  When any provision of this Agreement relates to a past event, the term ERISA Affiliate includes any person that was an ERISA Affiliate of an Obligor at the time of that past event.

EURIBOR means, in relation to any Loan in Euro:

	
 
	
(a)
	
the applicable Screen Rate as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for Euro and for a period equal in length to the Interest Period of that Loan; or

	
 
	
(b)
	
as otherwise determined pursuant to Clause 11.1 (Unavailability of Screen Rate),

and if, in either case, that rate is less than zero, EURIBOR shall be deemed to be zero.

Euro means the single currency of the Participating Member States.

Event of Default means an event specified as such in Clause 20.1 (Events of Default).

Extension Request has the meaning set out in paragraph (a) of Clause 2.7 (Extension option).

Facility means the US$800,000,000 multi currency term loan facility made available under this Agreement as set out in Clause 2.1 (The Facility).

Facility Agent's Spot Rate of Exchange means the Facility Agent's spot rate of exchange for the purchase of the relevant Optional Currency in such foreign exchange market as the Facility Agent selects, in each case with US Dollars at or about 11.00 a.m. on a particular day.

Facility Office means the office(s) notified by a Lender to the Facility Agent:

	
 
	
(a)
	
on or before the date it becomes a Lender; or

	
 
	
(b)
	
by not less than five Business Days' notice,

as the office(s) through which it will perform all or any of its obligations under this Agreement.

	
 

	
0010023-0003304 BK:44601953.9
	
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FATCA means:

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

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

	
 
	
(c)
	
any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the United States Internal Revenue Service or any Governmental Authority.

FATCA Application Date means:

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

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

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

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

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

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

Fee Letters means: 

	
 
	
(a)
	
the letter from the Co-ordinators to the Obligors and the letters from the Facility Agent to the Obligors, each dated on or about the date of this Agreement and setting out (among other matters) the amount of the fees referred to in Clause 22 (Fees); and

	
 
	
(b)
	
any agreement setting out fees payable by the Parent to a Finance Party referred to in paragraph (e) of Clause 2.6 (Increase) of this Agreement or under any other Finance Document.

Finance Document means this Agreement, the Fee Letters, any Novation Certificate, any Request, any Extension Request or any other document designated as such by the Facility Agent and the Obligors' Agent.

Finance Party means the Facility Agent, a Co-ordinator or a Lender.

	
 

	
0010023-0003304 BK:44601953.9
	
6
	
 

 

	
 

 

Financial Indebtedness means any indebtedness in respect of:

	
 
	
(a)
	
monies borrowed;

	
 
	
(b)
	
any debenture, bond, note, loan stock or other security;

	
 
	
(c)
	
any acceptance credit;

	
 
	
(d)
	
receivables sold or discounted (otherwise than on a non-recourse basis);

	
 
	
(e)
	
the acquisition cost of any asset to the extent payable before or after the time of acquisition or possession by the party liable where the advance or deferred payment is arranged primarily as a method of raising finance or financing the acquisition of that asset;

	
 
	
(f)
	
any lease entered into primarily as a method of raising finance or financing the acquisition of the asset leased;

	
 
	
(g)
	
any currency swap or interest swap, cap or collar arrangement or other derivative instrument (and when calculating the value of any such transaction, only the marked-to-market value shall be taken into account);

	
 
	
(h)
	
any amount raised under any other transaction having the commercial effect of a borrowing or raising of money; or

	
 
	
(i)
	
any guarantee, indemnity or similar assurance against financial loss of any person.

Funding Rate means any individual rate notified by a Lender to the Facility Agent pursuant to paragraph (a)(ii) of Clause 11.4 (Cost of funds).

Governmental Authority means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

Group means the Parent and its Subsidiaries.

Impaired Agent means the Facility Agent at any time when:

	
 
	
(a)
	
it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

	
 
	
(b)
	
the Facility Agent otherwise rescinds or repudiates a Finance Document;

	
 
	
(c)
	
(if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of Defaulting Lender; or

	
 
	
(d)
	
an Insolvency Event has occurred and is continuing with respect to the Facility Agent;

unless, in the case of paragraph (a) above:

	
 
	
(i)
	
its failure to pay is caused by:

	
 
	
(A)
	
administrative or technical error; or

	
 

	
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(B)
	
a Disruption Event; and

payment is made within three Business Days of its due date; or

	
 
	
(ii)
	
the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

Increase Confirmation means a confirmation substantially in the form set out in Schedule 6 (Form of Increase Confirmation).

Increase Lender has the meaning given to that term in Clause ‎2.6 (Increase).

Initial Termination Date means the date falling six months after the date of this Agreement.

Insolvency Event in relation to a Finance Party means that the Finance Party:

	
 
	
(a)
	
is dissolved (other than pursuant to a consolidation, amalgamation or merger);

	
 
	
(b)
	
becomes insolvent or is unable to pay its debts, in each case under the laws of any relevant jurisdiction applicable to that Finance Party, or fails or admits in writing its inability generally to pay its debts as they become due;

	
 
	
(c)
	
makes a general assignment, arrangement or composition with or for the benefit of its creditors;

	
 
	
(d)
	
institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, all other than by way of an Undisclosed Administration, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

	
 
	
(e)
	
has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

	
 
	
(i)
	
results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

	
 
	
(ii)
	
is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

	
 
	
(f)
	
has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

	
 
	
(g)
	
seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets, all other than by way of an Undisclosed Administration;

	
 

	
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(h)
	
has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

	
 
	
(i)
	
causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

	
 
	
(j)
	
takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

Interest Period means each period determined in accordance with Clause 9 (Interest Periods).

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

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

	
 
	
(b)
	
the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan,

each as of:

	
 
	
(i)
	
in relation to any Loan in Euro, 11.00 a.m. (Brussels time); or

	
 
	
(ii)
	
in relation to any other Loan, 11.00 a.m.,

in each case, on the Rate Fixing Day for the currency of that Loan.

Lender means, subject to Clause 28 (Changes to the Parties) and Clause 2.6 (Increase), a bank or financial institution listed in Schedule 1 in its capacity as a provider of Loans.

LIBOR means, in relation to any Loan:

	
 
	
(a)
	
the applicable Screen Rate as of 11.00 a.m. on the applicable Rate Fixing Day for the currency of that Loan and for a period equal in length to the Interest Period of that Loan; or

	
 
	
(b)
	
as otherwise determined pursuant to Clause 11.1 (Unavailability of Screen Rate),

and if, in either case, that rate is less than zero, LIBOR shall be deemed to be zero.

Loan means, subject to Clause 12 (Optional Currencies), the principal amount of each borrowing by the Borrower under this Agreement or the principal amount outstanding of that borrowing.

Majority Lenders means, subject to Clause 27.3 (Disenfranchisement of Defaulting Lenders) at any time, a Lender or Lenders whose Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments immediately prior to the reduction).

Margin means the percentage rate per annum determined in accordance with Clause 10.2 (Adjustment of Margin). 

	
 

	
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Margin Stock has the meaning assigned to such term in Regulation U of the Board.

Material Subsidiary means any Subsidiary of the Parent:

	
 
	
(a)
	
(i)                      the book value of whose assets (consolidated if it itself has Subsidiaries) equals or exceeds:

	
 
	
(A)
	
ten per cent.; or 

	
 
	
(B)
	
during the Certain Funds Period and with regards to Clause 20.6 (Insolvency) only, five per cent.,

of the book value of the consolidated total assets of the Group; or

	
 
	
(ii)
	
whose revenues (consolidated if it itself has Subsidiaries) equal or exceed: 

	
 
	
(A)
	
ten per cent.; or

	
 
	
(B)
	
during the Certain Funds Period and with regard to Clause 20.6 (Insolvency) only, five per cent., 

of the revenues of the Group taken as a whole; or

	
 
	
(iii)
	
whose trading profits (consolidated if it itself has Subsidiaries) before interest and tax equal or exceed: 

	
 
	
(A)
	
ten per cent.; or

	
 
	
(B)
	
during the Certain Funds Period and with regard to Clause 20.6 (Insolvency) only, five per cent.,

of the trading profits before interest and tax of the Group as a whole,

as determined by reference to the most recent accounts of the Subsidiary and the most recent consolidated accounts of the Group; or

	
 
	
(b)
	
any Subsidiary of the Parent which becomes a member of the Group after the date of the latest consolidated accounts of the Group at the time of determination and which would fulfil any of the tests in (a)(i), (ii) or (iii) above if tested on the basis of its latest accounts (consolidated if it itself has Subsidiaries) and those latest accounts of the Group; or

	
 
	
(c)
	
prior to the delivery of each set of accounts pursuant to Clause 19.2 (Financial information), any Subsidiary of the Parent to which has been transferred (whether by one transaction or a series of transactions, related or not) the whole or substantially the whole of the assets of a Subsidiary which immediately prior to such transaction or any of such transactions was a Material Subsidiary.

Moody's means Moody's Investors Services Limited, or any successor to its rating business.

Multiemployer Plan means a "multiemployer plan" within the meaning of section 3(37) or 4001(a)(3) of ERISA.

New Lender has the meaning given to it in paragraph (a) of Clause 28.2 (Transfers by Lenders).

	
 

	
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Novation Certificate has the meaning given to it in Clause 28.3 (Procedure for novations).

Obligor means the Parent, each Guarantor and the Borrower.

Obligors' Agent means the Parent, or such other Obligor from time to time nominated by the Obligors' Agent to replace it as Obligors' Agent and approved for such purpose by the Facility Agent.

Optional Currency means Euro provided it is freely available in the amount required and convertible into US Dollars in the Stockholm interbank market on the Rate Fixing Date and the Drawdown Date.

Original Dollar Amount in relation to a Loan, means:

	
 
	
(a)
	
if that Loan is denominated in US Dollars, the amount of that Loan; or

	
 
	
(b)
	
if that Loan is denominated in an Optional Currency, the equivalent in US Dollars of the amount of that Loan, calculated at the Facility Agent's Spot Rate of Exchange one Business Day before the Rate Fixing Day applicable to that Loan.

Original Group Accounts means the audited consolidated accounts of the Group for the year ended 31 December 2017.

Participating Member State means a member state of the European Union that adopts a single currency in accordance with the legislation of the European Union relating to European Economic and Monetary Union.

Party means a party to this Agreement.

Plan means an "employee benefit plan" within the meaning of section 3(3) of ERISA maintained by an Obligor or any ERISA Affiliate currently or at any time within the last five years, or to which the an Obligor or any ERISA Affiliate is required to make payments or contributions or has made payments or contributions within the past five years.

Rate Fixing Day means:

	
 
	
(a)
	
the second Business Day before the first day of an Interest Period for a Loan denominated in any currency other than Sterling; or

	
 
	
(b)
	
in the case of a Loan denominated in Sterling only, the first day of the Interest Period for that Loan,

or such other day as is generally treated as the rate fixing day by market practice in the relevant interbank market for leading banks to give quotations for deposits in the relevant currency for delivery on the first day of the relevant Interest Period, as determined by the Facility Agent.

Rating Agency means Moody's or Standard & Poor's.

Reference Bank Quotation means any quotation supplied to the Facility Agent by a Reference Bank.

Reference Bank Rate means: 

	
 
	
(a)
	
the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request by the Reference Banks:

	
 

	
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(i)
	
in relation to LIBOR:

	
 
	
(A)
	
(other than where paragraph (B) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

	
 
	
(B)
	
if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator; or

	
 
	
(ii)
	
in relation to EURIBOR:

	
 
	
(A)
	
(other than where paragraph (B) below applies) as the rate at which the relevant Reference Bank believes one prime bank is quoting to another prime bank for interbank term deposits in Euro within the Participating Member States for the relevant period; or

	
 
	
(B)
	
if different, as the rate (if any and applied to the relevant Reference Bank and the relevant period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.

Reference Banks means, subject to Clause 28.7 (Reference Banks), such banks as the Facility Agent may appoint in consultation with the Borrower, provided that no person may be appointed as Reference Bank without its consent.

Repeating Representations means each of the representations set out in Clause 18 (with the exception of Clause 18.10 (Taxes on payments), Clause 18.21 (Stamp duties) and Clause 18.23 (Material adverse change)).

Reportable Event means any of the events set forth in section 4043 of ERISA or the related regulations as to which the notice requirement has not been waived by the PBGC.

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

Request means a request made by the Obligors' Agent for a Loan, substantially in the form of Schedule 3.

Restricted Margin Stock means Margin Stock owned by any Obligor or any member of the Group, which represents not more than 331⁄3 per cent. of the aggregate value (determined in accordance with Regulation U of the Board), on a consolidated basis, of the assets of each Obligor and all members of the Group (other than Margin Stock) that are subject to the provisions of Clause 19 (Undertakings) (including, without limitation, Clauses 19.8 (Negative pledge) and 19.9 (Transactions similar to security)).

Sanctions Authority means:

	
 
	
(a)
	
the US Government, including the US Department of the Treasury (including its Office of Foreign Assets Control), the US Department of State, and the US Department of Commerce;

	
 
	
(b)
	
the United Nations Security Council;

	
 

	
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(c)
	
the European Union (including sanctions imposed against certain states, organisations and individuals under the European Union’s Common Foreign and Security Policy); 

	
 
	
(d)
	
the United Kingdom (including Her Majesty’s Treasury); 

	
 
	
(e)
	
Japan; or

	
 
	
(f)
	
the Swedish Government,

and any authority acting for on behalf of any of such entity in connection with administering and enforcing the Sanctions Laws.

Sanctions Laws means the economic or financial sanctions laws and/or sanctions regulations, sanctions-related trade embargoes and/or restrictive measures, or sanctions-related prohibitions imposed, administered, enacted or enforced from time to time by any Sanctions Authority.

Sanctions List means any list of persons or entities published in connection with Sanctions Laws or public announcements of Sanctions Laws or public designation or public identification made by or on behalf of any Sanctions Authority (including, providing such lists and information are publicly available, in the case of Her Majesty’s Treasury, the “Consolidated List of Financial Sanctions Targets and the Investment Ban List”, and, in the case of the Office of Foreign Assets Control of the United States Department of the Treasury, the “Specially Designated Nationals and Blocked Persons” list and the “Foreign Sanctions Evaders” list); or, providing such lists and information are publicly available, by any national authority implementing at a national level the published lists prescribed by the United Nations Security Council or the European Union, provided that the scope of any such national implementation shall not exceed the scope of such published lists.

Sanctions Restricted Party means a person:

	
 
	
(a)
	
that is listed on any Sanctions List (whether designated by name or by reason of being included in a class of person or a country or territory that is subject to nationwide or territory wide Sanctions Laws which directly apply to that person); 

	
 
	
(b)
	
that is directly or indirectly owned or controlled by or, acting on behalf of, a person referred to in (a) above;

	
 
	
(c)
	
with whom a national of any country that is subject to the jurisdiction of, or otherwise bound by the prescriptions of, a Sanctions Authority would be prohibited or restricted by law from engaging in trade, business or other activities; or

	
 
	
(d)
	
or any person otherwise the subject of any sanctions.

Screen Rate means:

	
 
	
(a)
	
in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed (before any correction, recalculation or republication by the administrator) on pages LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate); and

	
 

	
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(b)
	
in relation to EURIBOR, the euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for the relevant period displayed (before any correction, recalculation or republication by the administrator) on page EURIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate),

or, in each case, on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters.  If any such page or service ceases to be available, the Facility Agent may specify another page or service displaying the relevant rate after consultation with the Obligors’ Agent and the Lenders.

Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or arrangement having the effect of conferring security.

SEK and Swedish Kronor means the lawful currency for the time being of Sweden.

Separate Loan has the meaning given to that term in Clause 7.1 (Repayment).

Signing Date means the date of this Agreement.

Standard & Poor's means Standard & Poor's Credit Market Services Limited, or any successor to its rating business.

Sterling means the currency for the time being of the United Kingdom.

Subsidiary means an entity from time to time of which a person has direct or indirect control or owns directly or indirectly more than fifty per cent. (50%) of the share capital or similar right of ownership.

TARGET Day means a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open.

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

Total Commitments means the aggregate for the time being of the Commitments of all the Lenders, being US$800,000,000 at the date of this Agreement.

Termination Date means the Initial Termination Date, subject to an extension pursuant to Clause 2.7 (Extension option).

Transfer Date has the meaning given to it in paragraph (c) of Clause 28.3 (Procedure for novations).

Undisclosed Administration means an undisclosed administration (stille curatele) applicable to a Lender, imposed by the DCB under or based on section 1:76 of the DFSA, as to Lenders which are supervised by the DCB under the DFSA and in relation to which the DCB has not publicly disclosed the appointment of a custodian (curator) with regard to the relevant Lender..

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

	
 

	
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Unrestricted Margin Stock means any Margin Stock owned by either Obligor or any member of the Group which is not Restricted Margin Stock.

US Code means the United States Internal Revenue Code of 1986.

USA means the United States of America.

US Dollars and US$ means the currency for the time being of the USA

US Tax Obligor means:

	
 
	
(a)
	
the Borrower which is resident for tax purposes in the USA; or

	
 
	
(b)
	
an Obligor some or all of whose payments under the Finance Documents are from sources within the USA for USA federal income tax purposes.

VAT means:

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

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

Veoneer means Veoneer, Inc.. 

	
1.2
	
Construction

	
(a)
	
In this Agreement, unless the contrary intention appears, a reference to:

	
 
	
(i)
	
an amendment includes a supplement, novation or re-enactment and amended is to be construed accordingly;

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

	
 
	
(iii)
	
an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation;

	
 
	
(iv)
	
know your customer requirements are the identification checks that a Finance Party requests in order to meet its obligations under any applicable law or regulation to identify a person who is (or is to become) its customer;

	
 
	
(v)
	
a Default or an Event of Default is “continuing” if it has not been remedied or waived;

	
 
	
(vi)
	
a material adverse effect means:

	
 
	
(A)
	
a material adverse effect on the business or financial condition of the Parent or the Group as a whole; or

	
 
	
(B)
	
a material adverse effect on the ability of any Obligor to perform its payment obligations under any of the Finance Documents.

	
 

	
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(vii)
	
a month is a reference to 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 there is no numerically corresponding day in the month in which that period ends, that period shall end on the last Business Day in that calendar month; or

	
 
	
(B)
	
if an Interest Period commences on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which it is to end;

	
 
	
(viii)
	
a person includes any individual, company, unincorporated association or body of persons (including a partnership, joint venture or consortium), government, state, agency, international organisation or other entity;

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

	
 
	
(x)
	
winding up also includes amalgamation, reconstruction, reorganisation, administration, dissolution, liquidation, merger or consolidation and any equivalent or analogous procedure under the law of any jurisdiction (but, for the avoidance of doubt, reorganisation does not include a mere transfer of assets from one member of the Group to another whether the transferor continues to exist);

	
 
	
(xi)
	
a provision of law is a reference to that provision as amended or re-enacted;

	
 
	
(xii)
	
a Clause or a Schedule is a reference to a clause of or a schedule to this Agreement;

	
 
	
(xiii)
	
a person includes its successors, transferees and assigns;

	
 
	
(xiv)
	
a Finance Document or another document is a reference to that Finance Document or other document as amended; and

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

	
(b)
	
Unless the contrary intention 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.

	
(c)
	
The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement.

	
(d)
	
(i)     Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999; and

	
 
	
(ii)
	
notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability order) or termination of that Finance Document.

	
 

	
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2.
	
Facilities

	
2.1
	
The Facility

Subject to the terms of this Agreement, the Lenders grant to the Borrower a multicurrency term loan facility under which the Lenders will make Loans to the Borrower denominated in US Dollars or Optional Currencies.

	
2.2
	
Facility Limits

The aggregate Original Dollar Amount of all outstanding Loans shall not at any time exceed the Total Commitments.

	
2.3
	
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 is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents, any part of a Loan or any other amount owed by an Obligor which relates to a Finance Party's participation in the Facility or its role under a Finance Document (including any such amount payable to the Facility Agent on its behalf) is a debt owing to that Finance Party by that Obligor.

	
(c)
	
A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents.

	
2.4
	
Appointment of Obligors' Agent

	
(a)
	
Each Obligor irrevocably authorises the Obligors' Agent to give all notices (including, without limitation, Requests and notices of prepayment and cancellation) and instructions and make such agreements (including, without limitation, to confirm the continuation of any guarantees or indemnities following any amendment or waiver, however fundamental, or in relation to an alternative basis for determining the rate of interest and/or funding applicable to a Loan (as described in paragraph (b) of Clause 11.4 (Cost of funds)) expressed to be capable of being given or made by the Obligors' Agent in this Agreement.

	
(b)
	
The authorisation of the Obligors' Agent shall be effective notwithstanding that the exercise of the Obligors' Agent's authority may affect the Obligors without further reference to or the consent of the Obligors.  Each Obligor shall, as regards the Facility Agent and each Lender, be bound by any action taken by the Obligors' Agent on its behalf as though that Obligor had itself taken such action.

	
 

	
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2.5
	
Change of currency

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

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

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

	
(b)
	
If a change in any currency of a country occurs, this Agreement will be amended to the extent the Facility Agent specifies to be necessary to reflect the change in currency, to put the Finance Parties in the same position, so far as possible, that it would have been in if no change in currency had occurred and to comply with any generally accepted conventions and market practice in the relevant interbank market.

	
2.6
	
Increase

	
(a)
	
The Parent may by giving prior notice to the Facility Agent by no later than the date falling ten Business Days after the effective date of a cancellation of: 

	
 
	
(i)
	
the Available Commitments of a Defaulting Lender in accordance with Clause 8.4 (Right of cancellation in relation to a Defaulting Lender); or 

	
 
	
(ii)
	
the Commitments of a Lender in accordance with Clause 16 (Illegality),

request that the Total Commitments be increased (and the Total Commitments under the Facility shall be so increased) in an aggregate amount in US Dollars of up to the amount of the Available Commitments or Commitments so cancelled as follows:

	
 
	
(A)
	
the increased Commitments will be assumed by one or more Lenders or other banks or financial institutions (each an Increase Lender) selected by the Parent (each of which shall not be a member of the Group) and each of which confirms its willingness to assume (whether in the Increase Confirmation or otherwise) and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender;

	
 
	
(B)
	
each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender; 

	
 
	
(C)
	
each Increase Lender shall become a Party as a Lender and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender;

	
 
	
(D)
	
the Commitments of the other Lenders shall continue in full force and effect; and

	
 

	
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(E)
	
any increase in the Total Commitments shall take effect on the date specified by the Parent in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

	
(b)
	
An increase in the Total Commitments will only be effective on:

	
 
	
(i)
	
the execution by the Facility Agent of an Increase Confirmation from the relevant Increase Lender; and

	
 
	
(ii)
	
in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase, the performance by the Facility Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Facility Agent shall promptly notify to the Parent and the Increase Lender;

	
(c)
	
Each Increase Lender, by executing the Increase Confirmation, confirms that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective.

	
(d)
	
Unless the Facility Agent otherwise agrees or the increased Commitment is assumed by an existing Lender or Lenders, the Parent shall, on the date upon which the increase takes effect, pay to the Facility Agent (for its own account) a fee of US$2,500 and the Parent shall promptly on demand pay the Facility Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause 2.6.

	
(e)
	
The Parent may pay to the Increase Lender a fee in the amount and at the times agreed between the Parent and the Increase Lender in a separate Fee Letter.  

	
(f)
	
Paragraphs (g), (h) and (i) of Clause 28.2 (Transfers by Lenders) shall apply mutatis mutandis in this Clause ‎2.6 in relation to an Increase Lender as if references in that Clause to:

	
 
	
(i)
	
an Existing Lender were references to all the Lenders immediately prior to the relevant increase;

	
 
	
(ii)
	
the New Lender were references to that Increase Lender; and

	
 
	
(iii)
	
a re-transfer were references to a transfer.

	
2.7
	
Extension option

The Parent may request each Lender to extend the Termination Date as follows.

	
 
	
(a)
	
The Parent may, by delivering a written request to that effect in the form set out in Schedule 7 (Form of Extension Request) (the Extension Request) to the Facility Agent not earlier than 60 days and not later than 45 days before the Initial Termination Date request an extension of the original Termination Date by six months.

	
 
	
(b)
	
The Extension Request delivered pursuant to paragraph (a) above must confirm that, as at the date of that Extension Request: 

	
 
	
(i)
	
no Default is outstanding or, in the Parent’s opinion, might result from the extension requested in that Extension Request; and

	
 
	
(ii)
	
the Repeating Representations are correct in all material respects;

	
 

	
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(c)
	
The Facility Agent must promptly notify the Lenders of the receipt of an Extension Request.

	
 
	
(d)
	
Each Lender shall respond in writing to the Extension Request no later than 30 days after receipt thereof.  If a Lender fails to respond to the Facility Agent within this time period, it will be deemed to have refused the Extension Request.  

	
 
	
(e)
	
The Termination Date will be extended by the period so requested upon the Initial Termination Date provided that:

	
 
	
(i)
	
each Lender has agreed to extend its Commitments for the period so requested;

	
 
	
(ii)
	
the fee payable pursuant to paragraph (a) of Clause 22.4 (Extension Fee) in respect of that extension has been paid; and

	
 
	
(iii)
	
no Default is continuing, and the Repeating Representations are correct in all material respects, on the Initial Termination Date.

	
 
	
(f)
	
The Facility Agent shall notify the Lenders and the Parent of any extension taking effect in accordance with paragraph (d) above.

	
 
	
(g)
	
The Extension Request under this Clause 2.7 is irrevocable.

	
3.
	
Purpose

	
(a)
	
The Borrower shall apply each Loan towards funding a capital injection into Veoneer.

	
(b)
	
Without affecting the obligations of any Obligor in any way, no Finance Party is bound to monitor or verify the application of any Loan.

	
4.
	
Conditions Precedent

	
4.1
	
Documentary conditions precedent

	
(a)
	
The Obligors' Agent may not deliver the first Request until the Facility Agent has notified the Borrower and the Lenders that it has received all of the documents set out in Schedule 2 in form and substance satisfactory to it on or before the time specified in Schedule 2.

	
(b)
	
Other than to the extent that the Majority Lenders notify the Facility Agent in writing to the contrary before the Facility Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require) the Facility Agent to give that notification. The Facility Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

	
4.2
	
Further conditions precedent

Subject to Clause 6 (Certain Funds), the obligation of each Lender to participate in any Loan is subject to the further conditions precedent that:

	
 
	
(a)
	
on both the date of the Request and the Drawdown Date:

	
 
	
(i)
	
the representations and warranties in Clause 18 (Representations and Warranties) to be repeated on those dates are correct and will be correct immediately after the Loan is made;

	
 
	
(ii)
	
no Default is outstanding or might result from the Loan; and

	
 

	
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(iii)
	
no change of control, as defined in Clause 8.5(d) (Mandatory Prepayment), has occurred in respect of the Parent;

	
 
	
(b)
	
the making of the Loan would not cause Clause 2.2 (Facility Limits) to be contravened; and

	
 
	
(c)
	
the making of the Loan would not result in more than five Loans being outstanding at any one time.  Any Separate Loan shall not be taken into account in this paragraph (c).

	
5.
	
Loans

	
5.1
	
Drawdown

The Borrower may borrow a Loan if the Facility Agent receives from the Obligors' Agent, not later than 9.00 a.m. (Swedish time) two Business Days before the proposed Drawdown Date or, in the case of a Loan denominated in an Optional Currency, not later than 9.00 a.m. (Swedish time) three Business Days before the proposed Drawdown Date, a duly completed Request.  Each Request is irrevocable.

	
5.2
	
Completion of Requests

A Request will not be regarded as having been duly completed unless:

	
 
	
(a)
	
the Drawdown Date is a Business Day falling within the Availability Period;

	
 
	
(b)
	
the amount of the Loan is:

	
 
	
(i)
	
a minimum of US$25,000,000 and an integral multiple of US$5,000,000, or an equivalent amount in any Optional Currency; or

	
 
	
(ii)
	
the balance of the relevant undrawn Commitment; or

	
 
	
(iii)
	
such other amount as the Facility Agent (acting on the instructions of the Majority Lenders) may agree;

	
 
	
(c)
	
the amount selected under paragraph (b) above does not cause Clause 2.2 (Facility Limits) to be contravened;

	
 
	
(d)
	
the currency selected complies with Clause 12 (Optional Currencies);

	
 
	
(e)
	
the Interest Period selected complies with Clause 9 (Interest Periods); and

	
 
	
(f)
	
the payment instructions comply with Clause 13 (Payments).

Each Request must specify one Loan only, but the Obligors' Agent may, subject to the other terms of this Agreement, deliver more than one Request on any one day.

	
5.3
	
Advance of Loans

	
(a)
	
The Facility Agent shall promptly notify each Lender of the details of the requested Loan and the amount of its participation in the Loan.

	
(b)
	
Subject to the terms of this Agreement, each Lender shall make its participation in the Loan available to the Facility Agent for the Borrower in the currency in which it is to be borrowed, on the relevant Drawdown Date.

	
 

	
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(c)
	
The amount of each Lender's participation in the Loan will be the proportion of the Loan which its Commitment bears to the Total Commitments on the proposed Drawdown Date.

	
6.
	
Certain Funds

Certain Funds Period means the period from and including the Signing Date to and including the earlier of:

	
 
	
(a)
	
the last day of the Availability Period; and

	
 
	
(b)
	
the Drawdown Date.

Major Breach means a breach of:

	
 
	
(a)
	
Clause 19.7 (Pari passu ranking);

	
 
	
(b)
	
Clause 19.8 (Negative pledge);

	
 
	
(c)
	
Clause 19.9 (Transactions similar to security);

	
 
	
(d)
	
Clause 19.10 (Disposals);

	
 
	
(e)
	
Clause 19.11 (Change of business);

	
 
	
(f)
	
Clause 19.12 (Mergers);

	
 
	
(g)
	
Clause 19.14 (Third party guarantees);

	
 
	
(h)
	
Clause 19.21( Solvency); and

	
 
	
(i)
	
Clause 19.22 (Subsidiary Borrowings);

	
 
	
(j)
	
Clause 19.24 (Anti-corruption law); and

	
 
	
(k)
	
Clause 19.25 (Sanctions).

Major Default means any of the following Events of Default:

	
 
	
(a)
	
Clause 20.2 (Non-payment);

	
 
	
(b)
	
Clause 20.3 (Breach of other obligations) but only insofar as it relates to a Major Breach;

	
 
	
(c)
	
Clause 20.4 (Misrepresentation) but only insofar as it relates to a Major Representation;

	
 
	
(d)
	
Clauses 20.6 (Insolvency); 

	
 
	
(e)
	
Clause 20.7 (Insolvency proceedings); 

	
 
	
(f)
	
Clause 20.8 (Appointment of receivers and managers); 

	
 
	
(g)
	
Clause 20.11 (Cessation of business); or

	
 
	
(h)
	
Clause 20.12 (US Bankruptcy Laws).

	
 

	
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Major Representation means any of the following representations and warranties contained in this Agreement:

	
 
	
(a)
	
Clause 18.2 (Status);

	
 
	
(b)
	
Clause 18.3 (Powers and authority);

	
 
	
(c)
	
Clause 18.4 (Legal validity); 

	
 
	
(d)
	
Clause 18.5 (Non-conflict);

	
 
	
(e)
	
Clause 18.25 (Anti-corruption law); and

	
 
	
(f)
	
Clause 18.26 (Sanctions).

Spin-Off means the distribution in kind of 100 per cent. of the shares in Veoneer by the Parent to its shareholders and the listing of Veoneer on the New York Stock Exchange and Nasdaq Stockholm.

	
6.1
	
Certain Funds

	
(a)
	
Subject to paragraph (b) below, during the Certain Funds Period no Lender may:

	
 
	
(i)
	
refuse to participate in any Loan;

	
 
	
(ii)
	
cancel its Commitment;

	
 
	
(iii)
	
exercise any right of rescission, set-off, counter claim or similar right or remedy which it may have in relation to any Loan; 

	
 
	
(iv)
	
rescind, terminate or cancel this Agreement or otherwise exercise any similar right or remedy or make or enforce any claim under the Finance Documents it may have to the extent to do so would prevent or limit the making of a Certain Funds Utilisation; or

	
 
	
(v)
	
accelerate or cause repayment or prepayment of any Loan.

	
(b)
	
Paragraph (a) does not apply if:

	
 
	
(i)
	
the Parent has not delivered all of the documents set out in Schedule 2 (Conditions Precedent Documents);

	
 
	
(ii)
	
a Major Representation is not correct in any material respect or will not be correct in any material respect immediately after the Loan is made;

	
 
	
(iii)
	
a Major Default is continuing or would result from the proposed Loan; 

	
 
	
(iv)
	
any change of control, as defined in Clause 8.5(d) (Mandatory Prepayment), occurs in respect of the Parent; or

	
 
	
(v)
	
no event described in Clause 16 (Illegality) has occurred.

	
(c)
	
Nothing in this Clause 6.1 (Certain Funds) affects the rights of any Finance Party in respect of any continuing Default on expiry of the Certain Funds Period irrespective of whether that Default occurred during the Certain Funds Period or not.

	
 

	
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6.2
	
Compliance

The Parent must comply in all material respects with all laws and regulations relevant in the context of the Spin-Off.

	
6.3
	
Information

Unless prohibited from doing so by any law, regulation (including for the avoidance of doubt the regulations of any stock exchange on which the Parent’s shares are listed) or confidentiality undertaking which the Parent has entered into with a third party in good faith, the Parent must promptly supply to the Facility Agent:

	
 
	
(a)
	
copies of all documents, notices or announcements received or issued by it in relation to the Spin-Off; and

	
 
	
(b)
	
any other information regarding the progress of the Spin-Off as the Facility Agent may reasonably request.

	
6.4
	
Spin-Off indemnity

The Parent shall promptly indemnify each Finance Party, each Affiliate of a Finance Party and each officer or employee of a Finance Party or its Affiliate, against any cost, loss or liability incurred by that Finance Party or its Affiliate (or officer or employee of that Finance Party or Affiliate) in connection with or arising out of the funding of the Spin-Off (including but not limited to those incurred in connection with any litigation, arbitration or administrative proceedings or regulatory enquiry concerning the Spin-Off), unless such loss or liability is caused by the gross negligence or wilful misconduct of that Finance Party or its Affiliate (or employee or officer of that Finance Party or Affiliate). Any Affiliate or any officer or employee of a Finance Party or its Affiliate may rely on this Clause 6.4.

	
7.
	
Repayment

	
7.1
	
Repayment

The Borrower shall repay each Loan in full on the Termination Date.

	
8.
	
Prepayment and Cancellation

	
8.1
	
Automatic cancellation

The Commitments of each Lender shall, to the extent not already voluntarily cancelled under Clause 8.2 (Voluntary cancellation) or Clause 8.3 (Additional right of prepayment and cancellation), be automatically cancelled in full on the Termination Date.

	
8.2
	
Voluntary cancellation

	
(a)
	
The Obligors' Agent may, by giving not less than five days' prior written notice to the Facility Agent (or such shorter period of notice as the Majority Lenders may agree), cancel in whole or in part the undrawn amount of the Total Commitments (but the cancellation in part of either shall be in a minimum of US$25,000,000 and an integral multiple of US$5,000,000).

	
(b)
	
Any such cancellation shall reduce the Commitment of each Lender in respect of the relevant Facility pro rata.

	
 

	
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8.3
	
Additional right of prepayment and cancellation

If:

	
 
	
(a)
	
any Lender makes a notification to the Facility Agent under Clause 11.3 (Market disruption);

	
 
	
(b)
	
any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 14.2 (Tax gross-up);

	
 
	
(c)
	
any Lender claims indemnification from the Parent under Clause 14.3 (Tax indemnity) or Clause 15.1 (Increased costs);

	
 
	
(d)
	
an Obligor becomes obliged to pay any amount in accordance with Clause 16 (Illegality) to any Lender,

then, without prejudice to the obligations of the Borrower under those Clauses, the Obligors' Agent may, whilst the relevant circumstances continue, serve a notice of prepayment and cancellation on that Lender through the Facility Agent.  On the date falling five Business Days after the date of service of the notice:

	
 
	
(i)
	
the Borrower shall prepay the participations of that Lender in all the Loans; and

	
 
	
(ii)
	
the Commitments of that Lender shall be cancelled.

	
8.4
	
Right of cancellation in relation to a Defaulting Lender

	
(a)
	
If any Lender becomes a Defaulting Lender, the Parent may, at any time whilst the Lender continues to be such, give the Facility Agent five Business Days' notice of cancellation of each Available Commitment of that Lender.

	
(b)
	
On the notice referred to in paragraph (a) above becoming effective, each Commitment of the Defaulting Lender shall immediately be reduced to zero.

	
(c)
	
The Facility Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders.

	
8.5
	
Mandatory Prepayment

	
(a)
	
If, at any time after the date of this Agreement:

	
 
	
(i)
	
it is or becomes unlawful for any Obligor to perform any of its obligations under the Finance Documents; or

	
 
	
(ii)
	
the guarantee of any Guarantor is not effective or is alleged by any Obligor to be ineffective for any reason,

then the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Obligors' Agent:

	
 
	
(A)
	
cancel the Total Commitments; and/or

	
 
	
(B)
	
demand that all or part of the Loans, together with accrued interest and all other amounts accrued under the Finance Documents, be repaid forthwith, whereupon they shall be repaid immediately.

	
 

	
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(b)
	
If, at any time after the date of this Agreement:

	
 
	
(i)
	
a representation or warranty made, repeated or deemed to be repeated under Clause 18.26 (Sanctions) is incorrect in any material respect when made, repeated or deemed to be repeated; or

	
 
	
(ii)
	
an Obligor does not comply with Clause 19.25 (Sanctions),

any Lender may, by notice to the Facility Agent (which shall promptly notify the Obligors’ Agent):

	
 
	
(A)
	
reduce its Commitments under the Facility to zero; and

	
 
	
(B)
	
demand that all or part of its share in the Loans, together with accrued interest and all its other amounts accrued and owing to it under the Finance Documents, be repaid forthwith, whereupon they shall be repaid immediately.

Any such notice will take effect in accordance with its terms.

	
(c)
	
If a change of control occurs, the Parent shall promptly notify the Facility Agent upon becoming aware of that change of control and any Lender shall have the right, within one month (or such longer period as the Parent and the Facility Agent acting on the instructions of all the Lenders may agree) of the Facility Agent receiving notice of the change of control under this paragraph, to require the Facility Agent to reduce, by notification to the Parent (the Notification of Reduction), its Commitments under the Facility to zero.  Thirty days following receipt of a Notification of Reduction with respect to a Lender, that Lender's Commitment will be cancelled in full and the Borrower shall repay that Lender's participations in all Loans together with accrued interest and all other amounts accrued under the Finance Documents in respect of that Lender.

	
(d)
	
For the purposes of paragraph (c) above, Clause 4.2(a)(iii) (Further conditions precedent) and Clause 6.1(b) (Certain Funds) a change of control occurs if a person or group of persons acting in concert at any time after the date of this Agreement acquires more than 50 per cent. of the shares which carry the right to vote in the Parent.

	
(e)
	
If at any time after the date of this Agreement the aggregate amount of net proceeds from relevant disposals is more than US$50,000,000 or its equivalent is any other currency in any financial year of the Parent, the Parent must:

	
 
	
(i)
	
promptly notify the Facility Agent; and

	
 
	
(ii)
	
procure that an amount at least equal to the excess is applied towards prepaying the Loans.

	
(f)
	
For the purposes of paragraph (e) above,:

	
 
	
(i)
	
net proceeds means any amount received by a member of the Group as consideration for a relevant disposal to a person which is not a member of the Group, including the amount of any intercompany loan repaid or prepaid to continuing members of the Group, less all Taxes and reasonable costs and expenses incurred by any member of the Group in connection with the relevant disposal; and

	
 
	
(ii)
	
relevant disposal means a disposal of any asset or business (whether by way of a share or asset sale) other than a disposal permitted pursuant to Clauses 19.10(b)(i), 19.10(b)(ii), 19.10(b)(iv), 19.10(b)(v) and 19.10(b)(vi). 

	
 

	
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(g)
	
If at any time after the date of this Agreement the aggregate amount of net proceeds from capital markets issue(s)/relevant issue(s) is more than US$50,000,000 or its equivalent is any other currency in any financial year of the Parent, the Parent must:

	
 
	
(i)
	
immediately notify the Facility Agent; and

	
 
	
(ii)
	
procure that an amount at least equal to the excess is applied towards prepaying the Loans.

	
(h)
	
For the purposes of paragraph (g) above:

	
 
	
(i)
	
capital markets issue means any public or private bond or other capital markets issue including, without limitation, any issue or placement of any debt, equity or hybrid financial instrument (including any convertible or exchangeable instrument), other than any issue by the Parent of short term commercial paper ;

	
 
	
(ii)
	
net proceeds means any amount received by a member of the Group as consideration for a capital markets/relevant issue less all Taxes and reasonable costs and expenses incurred by any member of the Group in connection with that capital markets/relevant issue; and

	
 
	
(iii)
	
relevant issue means any issue, sale or public offering of any equity security (including any preference share) or any public or private bond or other capital markets issue.

	
(i)
	
Any prepayment under paragraphs (e) or (g) above must be made on the last day of the Interest Period of the Loan to be prepaid in which the excess occurred.

	
(j)
	
The amount to be prepaid under paragraphs (e) or (g) above will also be applied in reducing Commitments in accordance with Clause 8.6(e) (Miscellaneous provisions).  If the amount to be applied in prepaying the Loans is more than the amount of Loans (if any) then outstanding, the Commitments will be automatically reduced in an amount equal to the excess.

	
(k)
	
Any prepayment of a Loan pursuant to this Clause 8.5 shall be applied pro rata to each Lender's participation in that Loan.

	
8.6
	
Miscellaneous provisions

	
(a)
	
Any notice of prepayment and cancellation or notice of cancellation under this Agreement is irrevocable.  The Facility Agent shall notify the Lenders promptly of receipt of any such notice.

	
(b)
	
All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.  All cancellations under this Agreement shall be made without penalty.

	
(c)
	
No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement.

	
(d)
	
Subject to Clause 2.6 (Increase), no amount of a Commitment which is cancelled under this Agreement may subsequently be reinstated.

	
(e)
	
If all or part of a Lender's participation in a Loan is repaid or prepaid and is not available for re-borrowing (other than by operation of Clause 12.2 (Revocation of currency)), an equivalent amount of that Lender's Commitment will be deemed to be cancelled on the date of repayment or prepayment.

	
 

	
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8.7
	
Application of prepayments

Any prepayment of a Loan pursuant to Clause 8.5(e) (Mandatory Prepayment) or Clause 8.5(g)  (Mandatory Prepayment) will be applied pro rata to each Lender's participation in that Loan.

	
9.
	
Interest Periods

	
9.1
	
Selection

	
(a)
	
The Obligors' Agent must select the first Interest Period for a Loan in the relevant Request and may select subsequent Interest Periods in a Selection Notice.

	
(b)
	
Each Selection Notice for a Loan is irrevocable and must be delivered to the Facility Agent by the Borrower by not later than 9 a.m. (Swedish time) three Business Days before the commencement of the relevant Interest Period.

	
(c)
	
If the Borrower fails to deliver a Selection Notice to the Facility Agent by 9 a.m. (Swedish time) three Business Days before the commencement of the relevant Interest Period, the relevant Interest Period will, subject to the other provisions of this Clause 9.1 (Selection), be one month.

	
(d)
	
Subject to the following provisions of this Clause each Interest Period for a Loan will be one, two, three or six months or any other period agreed by the Borrower and the Facility Agent (acting on the instructions of all the Lenders).

	
(e)
	
The first Interest Period for a Loan will start on its Utilisation Date and each subsequent Interest Period will start on the last day of the preceding Interest Period.

	
9.2
	
Non-Business Days

If an Interest Period for a Loan would otherwise end on a day which is not a Business Day, that Interest Period shall instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

	
9.3
	
Overrunning of the Termination Date

If an Interest Period in respect of a Loan borrowed under the Facility would otherwise overrun the Termination Date it shall be shortened so that it ends on the Termination Date.

	
9.4
	
Notification

The Facility Agent shall notify each relevant Party of the duration of each Interest Period promptly after ascertaining its duration.

	
9.5
	
Other adjustments

	
(a)
	
Subject to paragraph (b) below, the Facility Agent and the Parent may enter into such other arrangements as they may agree for the adjustment of Interest Periods and the consolidation and/or division of Loans.

	
(b)
	
The Facility Agent may not agree an Interest Period longer than six months without the prior consent of all the Lenders which have (or will have) a participation in the relevant Loan.

	
 

	
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10.
	
Interest

	
10.1
	
Interest rate

	
(a)
	
The rate of interest on each Loan for its Interest Period is the rate per annum determined by the Facility Agent to be the aggregate of the applicable:

	
 
	
(i)
	
Margin; and

	
 
	
(ii)
	
(A)                 in relation to any Loan in Euro, EURIBOR; or

	
 
	
(B)
	
in relation to any other Loan, LIBOR.

	
10.2
	
Adjustment of Margin

	
(a)
	
The initial Margin is 0.30 per cent. per annum.

	
(b)
	
Subject to the other provisions of this Clause 10.2, the Margin will be calculated by reference to the table below and the number of Months that have elapsed since the Signing Date:

 

		
	
Number of Months since Signing Date
	
Margin (per cent. per annum)

	
From and including the Signing Date to the date falling three Months after the Signing Date:
	
0.30

	
From and including the date falling three Months after the Signing Date to the date falling six Months after the Signing Date:
	
0.45

	
From and including the date falling six Months after the Signing Date to the date falling nine Months after the Signing Date:
	
0.60

	
From and including the date falling nine Months after the Signing Date to the Termination Date:
	
0.80

	
(c)
	
Any change in the Margin will apply to all Loans outstanding and on each Loan made on or after the relevant date set out in paragraph (b) above.

	
10.3
	
Due dates

Except as otherwise provided in this Agreement, accrued interest on each Loan is payable by the Borrower on the last day of the Interest Period for that Loan and also, if the Interest Period is longer than six months, on the dates falling at six monthly intervals after the first day of that Interest Period.

	
10.4
	
Default interest

	
(a)
	
If an Obligor fails to pay any amount payable by it under the Finance Documents, it shall forthwith on demand by the Facility Agent pay interest on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate (the default rate) determined by the Facility Agent to be one per cent. per annum above, as applicable:

	
 
	
(i)
	
the rate on the overdue amount under Clause 10.1 (Interest rate) immediately before the due date (if of principal of a Loan to the end of the relevant Interest Period current at the due date of payment); or

	
 

	
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(ii)
	
in all other cases (including principal of a Loan following the relevant Interest Period current at the due date of payment), 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 such successive Interest Periods of such duration as the Facility Agent may determine (each a Designated Interest Period).

	
(b)
	
The default rate will be determined if calculated by reference to LIBOR or EURIBOR on each Business Day or the first day of, or two Business Days before the first day of, the relevant Designated Interest Period, as appropriate.

	
(c)
	
Default interest will be compounded at the end of each Designated Interest Period (if calculated by reference to LIBOR or EURIBOR).

	
10.5
	
Notification of rates of interest

	
(a)
	
The Facility Agent shall promptly notify the Obligors' Agent and the relevant Lenders of the determination of a rate of interest under this Agreement.

	
(b)
	
The Agent shall promptly notify the Borrower of each Funding Rate relating to a Loan.

	
11.
	
Changes to the Calculation of Interest

	
11.1
	
Unavailability of Screen Rate

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

	
(b)
	
Reference Bank Rate: If no Screen Rate is available for LIBOR or, if applicable, EURIBOR for: 

	
 
	
(i)
	
the currency of a Loan; or

	
 
	
(ii)
	
the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate,

the applicable LIBOR or EURIBOR shall be the Reference Bank Rate as of 11.00 a.m. on the applicable Rate Fixing Day for the currency of that Loan and for a period equal in length to the Interest Period of that Loan.

	
(c)
	
Cost of funds: If paragraph (b) above applies but no Reference Bank Rate is available for the relevant currency or Interest Period there shall be no LIBOR or EURIBOR (as applicable) for that Loan and Clause 11.4 (Cost of funds) shall apply to that Loan for that Interest Period.

	
11.2
	
Calculation of Reference Bank Rate

	
(a)
	
Subject to paragraph (b) below, if LIBOR or EURIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by 11.30 a.m. on the applicable Rate Fixing Day the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.

	
(b)
	
If at or about noon on the applicable Rate Fixing Day none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

	
 

	
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11.3
	
Market disruption

If before close of business in London on the applicable Rate Fixing Day for the relevant Interest Period the Facility Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 50 per cent. of that Loan) that the cost to it of funding its participation in that Loan from the wholesale market for the relevant currency would be in excess of LIBOR or EURIBOR (as applicable) then Clause 11.4 (Cost of funds) shall apply to that Loan for the relevant Interest Period.

	
11.4
	
Cost of funds

	
(a)
	
If this Clause 11.4 applies, the rate of interest on each Lender's share of the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

	
 
	
(i)
	
the Margin; and

	
 
	
(ii)
	
the rate notified to the Facility Agent by that Lender as soon as practicable and in any event no later than the date falling five Business Days before the date on which 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 the relevant Lender of funding its participation in that Loan from whatever source it may reasonably select (such calculation of cost shall be certified in reasonable detail and disclosed to the Obligors’ Agent, provided that this shall not in any way require a Lender to reveal any information it considers to be confidential about itself or its operations).

	
(b)
	
If this Clause 11.4 applies and the Facility Agent or the Obligors’ Agent so requires, the Facility Agent and the Obligors’ Agent shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest.

	
(c)
	
Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Obligors’ Agent, be binding on all Parties.

	
11.5
	
Break Costs

	
(a)
	
The Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

	
(b)
	
Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

	
12.
	
Optional Currencies

	
12.1
	
Selection

	
(a)
	
The Obligors' Agent may select the currency of a Loan in the relevant Request.

	
(b)
	
The currency of each Loan must be US Dollars or an Optional Currency.

	
(c)
	
The Facility Agent shall notify each Lender of the currency of each Loan, the applicable Facility Agent's Spot Rate of Exchange and the Original Dollar Amount promptly after they are ascertained.

	
 

	
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12.2
	
Revocation of currency

If before 9.30 a.m. on any Rate Fixing Day, the Facility Agent receives notice from a Lender that:

	
 
	
(a)
	
it is impracticable for it to fund its participation in a Loan in the relevant Optional Currency during that Interest Period in the ordinary course of business in the London interbank market (or the European interbank market as appropriate); and/or

	
 
	
(b)
	
the use of the proposed Optional Currency might contravene any law or regulation,

the Facility Agent shall give notice to the Obligors' Agent and to the Lenders to that effect before 11.00 a.m. on that day.  In this event:

	
 
	
(i)
	
that Lender's participation in the Loan (or, if more than one Lender is similarly affected, those Lenders' participations in the Loan) shall be treated as a separate Loan denominated in US Dollars during the relevant Interest Period;

	
 
	
(ii)
	
LIBOR shall be determined pursuant to Clause 11.1 (Unavailability of Screen Rate) save that, for the purposes of such determination, all references in Clause 11.1 (Unavailability of Screen Rate) and in the definition of Interpolated Screen Rate to “11.00 a.m.” shall be deemed to read “1.00 p.m.”.

	
12.3
	
Amount of Optional Currencies

	
(a)
	
If a Loan is to be drawn down in an Optional Currency, the amount of each Lender's participation in that Loan will be determined by converting into that Optional Currency that Lender's participation in the Original Dollar Amount of that Loan on the basis of the Facility Agent's Spot Rate of Exchange one Business Day before the Rate Fixing Day applicable to that Loan.

	
(b)
	
The Facility Agent shall notify the Lenders and the Obligors' Agent of Optional Currency amounts (and the applicable Facility Agent's Spot Rate of Exchange) promptly after they are ascertained.

	
12.4
	
Change of currency

	
(a)
	
Subject to Clause 12.2  (Revocation of currency), a Loan will remain denominated in the same currency through successive Interest Periods, unless the currency is changed in accordance with this Clause 12.4 (Change of currency).

	
(b)
	
The Borrower may change the currency of a Loan made to it with effect from the start of an Interest Period by giving to the Facility Agent a duly completed Selection Notice by no later than 9 a.m. (Swedish time) three Business Days before the relevant Interest Period.  Subject to Clause 12.2 (Revocation of currency), the relevant Loan will remain denominated in that currency until it is changed again under this Clause 12.4 (Change of currency).

	
(c)
	
If a Loan is to be denominated in different currencies during two successive Interest Periods, then subject to paragraph (d) below:

	
 
	
(i)
	
the Borrower must repay that Loan on the last day of its current Interest Period in the currency in which it is then denominated (the old currency); and

	
 
	
(ii)
	
subject to Clause 12.6 (Conditions precedent), the Lenders must re-advance the Loan in the currency in which it is to be denominated for its next Interest Period (the new currency).

	
 

	
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The amount of the Loan in the new currency will be calculated at the Facility Agent's Spot Rate of Exchange on the date of the Selection Notice referred to at (b) above by the Facility Agent by reference to its Base Currency Amount.  The Facility Agent must then notify the Lenders promptly of that amount.

	
(d)
	
Alternatively, if the Facility Agent and the Borrower agree:

	
 
	
(i)
	
the Facility Agent must apply the amount of the Loan (or so much of that amount as is necessary) in the new currency to purchase an amount of the old currency sufficient to discharge the obligation of the Borrower to repay the Loan in the old currency;

	
 
	
(ii)
	
the Facility Agent must apply any amount of the old currency purchased under paragraph (i) above towards repaying the Loan in the old currency;

	
 
	
(iii)
	
the Facility Agent will notify the Borrower promptly if there is a shortfall or an excess;

	
 
	
(iv)
	
if there is a shortfall, the Borrower must pay to the Facility Agent, on the date on which the Loan is due to be repaid in the old currency, an amount in the old currency equal to the shortfall; and

	
 
	
(v)
	
if there is an excess, the Facility Agent must pay to the Borrower, on the date on which the Loan is due to be repaid in the old currency, an amount in the new currency equal to the excess.

	
(e)
	
If the day on which the old currency is due to be repaid is not also a Business Day for the new currency:

	
 
	
(i)
	
the Facility Agent must notify the Borrower and the Lenders promptly;

	
 
	
(ii)
	
the Loan will remain in the old currency until the next day which is a Business Day for both the old and the new currencies; and

	
 
	
(iii)
	
during this period, the Loan will have Interest Periods running from one Business Day to the next Business Day.

	
(f)
	
The Parent must indemnify the Facility Agent against any cost, loss or liability incurred by the Facility Agent as a result of any foreign exchange contract entered into for the purpose of this Clause 12.4 (Change of currency).

	
12.5
	
Same Optional Currency during successive Interest Periods

	
(a)
	
If a Loan is to be denominated in the same Optional Currency during two successive Interest Periods, the Facility Agent must calculate the amount of the Loan in the Optional Currency for the second of those Interest Periods.

	
(b)
	
The amount of that Loan in the Optional Currency for the second Interest Period will be the amount determined by notionally converting the Base Currency Amount of the Loan into that Optional Currency on the basis of the Facility Agent's Spot Rate of Exchange three Business Days before the relevant Interest Period.

	
 

	
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(c)
	
If the amount calculated is less than the existing amount of that Loan in the Optional Currency during the first Interest Period, the Facility Agent must promptly notify the Borrower and, subject to paragraph (e) below, the Borrower must repay on the last day of the first Interest Period an amount equal to the difference and the amount of the Loan in the Optional Currency will be reduced accordingly.

	
(d)
	
If the amount calculated is more than the existing amount of that Loan in the Optional Currency during the first Interest Period, the Facility Agent must promptly notify each Lender and, subject to paragraph (e) below and Clause 12.6 (Conditions precedent), each Lender must advance on the last day of the first Interest Period its Pro Rata Share of an amount equal to the difference and the amount of the Loan in the Optional Currency will be increased accordingly.

	
(e)
	
If the calculation made by the Facility Agent under paragraph (a) above shows that the amount of the Loan in the Optional Currency has increased or decreased by less than five per cent. since it was borrowed or (if later) the most recent adjustment under paragraph (c) or (d) above, no payment is required under paragraph (c) or (d) above and the amount of the Loan will remain the same.

	
12.6
	
Conditions precedent

Each Lender will only be obliged to re-advance its participation in a Loan in a new currency or make any payment increasing the amount of a Loan in an Optional Currency under this Clause if on the date of the relevant payment:

	
 
	
(a)
	
no Default is continuing or would result from that change of currency or payment; and

	
 
	
(b)
	
the Repeating Representations are correct in all material respects.

	
13.
	
Payments

	
13.1
	
Place

All payments by an Obligor or a Lender under the Finance Documents shall be made to the Facility Agent to its account at such office or bank in the principal financial centre of the country of the relevant currency (or, in the case of Euros, in the principal financial centre of a Participating Member State, Stockholm or London) as it may notify to that Obligor or that Lender for this purpose.  Notwithstanding the above, all payments by the Parent to the Co-ordinators under Clauses 22 (Fees) and 23 (Expenses) shall be made to the Co-ordinators in the manner agreed by the Co-ordinator and the Parent.

	
13.2
	
Funds

Payments under the Finance Documents to the Facility Agent shall be made for value on the due date at such times and in such funds as the Facility Agent may specify as being customary at the time for the settlement of transactions in the relevant currency in the place for payment.

	
13.3
	
Distribution

	
(a)
	
Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to paragraphs (b) to (e) below, be made available by the Facility Agent to that Party by payment (on the date and in the currency and funds of receipt) to its account with such office or bank in the principal financial centre of the country of the relevant currency (or, in the case of Euros, in the principal financial centre of a Participating Member State, Stockholm or London) as it may notify to the Facility Agent for this purpose by not less than five Business Days' prior notice.

	
 

	
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(b)
	
Each  Facility Agent may apply any amount received by it for an Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from an Obligor under the Finance Documents or in or towards the purchase of any amount of any currency to be so applied.

	
(c)
	
Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility 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.  

	
(d)
	
Unless paragraph (e) below applies, if the Facility Agent pays an amount to another Party and it proves to be the case that the Facility 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 Facility Agent shall on demand refund the same to the Facility Agent together with interest on that amount from the date of payment to the date of receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds.

	
(e)
	
If the Facility Agent is willing to make available amounts for the account of the Borrower before receiving funds from the Lenders then if and to the extent that the Facility Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to the Borrower:

	
 
	
(i)
	
the Facility Agent shall notify the Parent of that Lender's identity and the Borrower to whom that sum was made available shall on demand refund it to the Facility Agent; and

	
 
	
(ii)
	
the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on demand pay to the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the Facility Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

	
13.4
	
Currency

	
(a)
	
A repayment or prepayment of a Loan or any part of a Loan is payable in the currency in which the Loan is denominated on its due date.

	
(b)
	
Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated.

	
(c)
	
Amounts payable in respect of costs, expenses and taxes and the like are payable in the currency in which they are incurred.

	
(d)
	
Any other amount payable under the Finance Documents is, except as otherwise provided in the Finance Documents, payable in US Dollars.

	
13.5
	
Set-off and counterclaim

All payments made by an Obligor under the Finance Documents shall be made without set-off or counterclaim.

	
13.6
	
Non-Business Days

	
(a)
	
If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

	
 

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

	
13.7
	
Impaired Agent

	
(a)
	
If, at any time, the Facility Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Facility Agent in accordance with Clause 13.1 (Place) and Clause 13.2 (Funds) may instead either pay that amount direct to the required recipient or, if it is not reasonably practicable to pay that amount direct, pay that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment (the Paying Party) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the Recipient Party).  In each case such payments must be made on the due date for payment under the Finance Documents.

	
(b)
	
All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or Recipient Parties pro rata to their respective entitlements.

	
(c)
	
A Party which has made a payment in accordance with this Clause ‎13.7 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

	
(d)
	
Promptly upon the appointment of a successor Agent in accordance with Clause 21.12 (Resignation of  the Facility Agent), each Paying Party shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 13.3 (Distribution).

	
(e)
	
A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

	
 
	
(i)
	
that it has not given an instruction pursuant to paragraph (d) above; and

	
 
	
(ii)
	
that it has been provided with the necessary information by that Recipient Party,

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party.

	
13.8
	
Partial payments

	
(a)
	
If the Facility Agent receives a payment insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of the Borrower under the Finance Documents in the following order:

	
 
	
(i)
	
first, in or towards payment pro rata of any unpaid, fees, costs and expenses of the Facility Agent under the Finance Documents;

	
 
	
(ii)
	
secondly, in or towards payment pro rata of any accrued interest 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.

	
 

	
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(b)
	
The Facility Agent shall, if so directed by all the Lenders, vary the order set out in subparagraphs (a)(ii) to (iv) above.

	
(c)
	
Paragraphs (a) and (b) above will override any appropriation made by the Borrower.

	
13.9
	
Disruption to Payment Systems

If either the Facility Agent determines (in its discretion) that a Disruption Event has occurred or the Facility Agent is notified by the Parent that a Disruption Event has occurred:

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

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

	
 
	
(c)
	
the Facility Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

	
 
	
(d)
	
any such changes agreed upon by the Facility Agent and the Parent shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause ‎27 (Amendments and Waivers);

	
 
	
(e)
	
the Facility Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause ‎13.9; and

	
 
	
(f)
	
the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

	
14.
	
Taxes

	
14.1
	
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.

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, other than a FATCA Deduction.  

Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under Clause 14.2 (Tax gross-up) or a payment under Clause 14.3 (Tax indemnity).

	
 

	
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(b)
	
Unless a contrary indication appears, in this Clause 14 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination.

	
14.2
	
Tax gross-up

	
(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 Parent 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 Facility Agent accordingly.  Similarly, a Lender shall notify the Facility Agent on becoming so aware in respect of a payment payable to that Lender.  If the Facility Agent receives such notification from a Finance Party it shall notify the Parent 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)
	
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.

	
(e)
	
Within 30 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 Facility 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.

	
14.3
	
Tax indemnity

	
(a)
	
The Parent shall (within three Business Days of demand by the Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

	
(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; or

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

	
 
	
(A)
	
is compensated for by an increased payment under Clause 14.2 (Tax gross-up); or

	
 

	
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(B)
	
would have been compensated for by an increased payment under Clause 14.2 (Tax gross-up); or

	
 
	
(C)
	
relates to a FATCA Deduction required to be made by a Party.

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

	
(d)
	
A Protected Party shall, on receiving a payment from an Obligor under this Clause 14.3, notify the Facility Agent.

	
14.4
	
US Taxation - delivery of forms and statements

	
(a)
	
Within 31 days after the date of this Agreement, each Lender (which is not a United States person as such term is defined in section 7701(a)(30) of the US Code) shall submit to the Obligors' Agent and the Facility Agent duly completed and signed copies of either:

	
 
	
(i)
	
Form W-8BEN-E (entitling the relevant Lender to a complete exemption from withholding on all amounts to be received by it, including fees, under the Finance Documents); or

	
 
	
(ii)
	
Form W-8ECI (relating to all amounts to be received by the relevant Lender, including fees, under the Finance Documents),

of the United States Internal Revenue Service.

	
(b)
	
Any New Lender (as defined in Clause 28.2 (Transfers by Lenders)) shall comply with the provisions of paragraph (a) above within 31 days, or earlier if requested, of it becoming a New Lender under this Agreement.

	
(c)
	
Other than as set out in paragraphs (a) and (b) above, each Lender (and any New Lender) shall submit to the Obligors' Agent and the Facility Agent such additional duly completed and signed copies of the applicable forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may be:

	
 
	
(i)
	
reasonably requested by an Obligor or the Facility Agent from that Lender (or New Lender); and or

	
 
	
(ii)
	
required under then current United States law or regulations to determine the United States withholding taxes on payment in respect of all amounts to be received by that Lender (or New Lender), including fees, under the Finance Documents.

	
(d)
	
Upon the request of an Obligor or the Facility Agent, any New Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the US Code) shall submit to the Obligors' Agent or the Facility Agent (as applicable) duly completed Internal Revenue Service Form W-9, establishing that it is such a United States person.

	
(e)
	
If any Lender (or any New Lender) determines that it is unable to submit any form or certificate that it is obliged to submit pursuant to this Clause 14.4, or that any information or declaration contained in any such form or certificate previously submitted has either ceased or will cease to be true, accurate and complete in all respects, it shall promptly notify the Obligors' Agent and the Facility Agent of such fact.

	
 

	
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14.5
	
Tax credit

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

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

	
 
	
(b)
	
that Finance Party has obtained and utilised that Tax Credit,

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

	
14.6
	
VAT

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

	
(b)
	
If VAT is or becomes 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 other than the Recipient (the Relevant Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

	
 
	
(i)
	
(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

	
 
	
(ii)
	
(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

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

	
 

	
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(d)
	
Any reference in this Clause 14.6 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term representative member to have the same meaning as in the Value Added Tax Act 1994).

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

	
14.7
	
FATCA Information

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

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

	
 
	
(A)
	
a FATCA Exempt Party; or

	
 
	
(B)
	
not a FATCA Exempt Party;

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

	
 
	
(iii)
	
supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime.

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

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

	
 
	
(i)
	
any law or regulation;

	
 
	
(ii)
	
any fiduciary duty; or

	
 
	
(iii)
	
any duty of confidentiality.

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

	
 

	
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(e)
	
If the Borrower is a US Tax Obligor or the Facility Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Finance Party shall, within ten Business Days of: 

	
 
	
(i)
	
where the Borrower is a US Tax Obligor and the Finance Party is an Original Lender, the date of this Agreement; 

	
 
	
(ii)
	
where the Borrower is a US Tax Obligor on a Transfer Date or a date on which an increase in Commitments takes effect pursuant to Clause 2.6 (Increase) and the Finance Party is a New Lender or an Increase Lender, the relevant Transfer Date or date on which an increase in Commitments takes effect pursuant to Clause 2.6 (Increase); 

	
 
	
(iii)
	
the date a new US Tax Obligor accedes as the Borrower; or

	
 
	
(iv)
	
where the Borrower is not a US Tax Obligor, the date of a request from the Facility Agent, 

supply to the Facility Agent:

	
 
	
(A)
	
a withholding certificate on Form W-8, Form W-9 or any other relevant form; or

	
 
	
(B)
	
any withholding statement or other document, authorisation or waiver as the Facility Agent may require to certify or establish the status of such Finance Party under FATCA or that other law or regulation.

	
(f)
	
The Facility Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Finance Party pursuant to paragraph (e) above to the Borrower. 

	
(g)
	
If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Facility Agent by a Finance Party pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, that Finance Party shall promptly update it and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Facility Agent unless it is unlawful for that Finance Party to do so (in which case that Finance Party shall promptly notify the Facility Agent). The Facility Agent shall provide any such updated withholding certificate, withholding statement, document, authorisation or waiver to the Borrower. 

	
(h)
	
The Facility Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Finance Party pursuant to paragraph (e) or (g) above without further verification.  The Facility Agent shall not be liable for any action taken by it under or in connection with paragraphs (e) to (g) above. 

	
14.8
	
FATCA Deduction

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

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

	
 

	
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15.
	
Increased Costs

	
15.1
	
Increased costs

	
(a)
	
Subject to Clause 15.2 (Exceptions), the Parent shall forthwith on demand by a Finance Party pay to that Finance Party the amount of any increased cost incurred by it or any of its Affiliates as a result of:

	
 
	
(i)
	
any Change in Law; or

	
 
	
(ii)
	
compliance with any regulation made after the date of this Agreement,

(including any law or regulation relating to taxation, change in currency of a country, or reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control).

	
(b)
	
In this Agreement increased cost means:

	
 
	
(i)
	
an additional cost incurred by a Finance Party or any of its Affiliates as a result of it having entered into, or performing, maintaining or funding its obligations under, this Agreement;

	
 
	
(ii)
	
that portion of an additional cost incurred by a Finance Party or any of its Affiliates in making, funding or maintaining all or any advances comprised in a class of advances formed by or including that Finance Party's participations in the Loans made or to be made under this Agreement as is attributable to a Finance Party making, funding or maintaining those participations;

	
 
	
(iii)
	
a reduction in any amount payable to a Finance Party or any of its Affiliates or the effective return to a Finance Party or any of its Affiliates under this Agreement or (to the extent that it is attributable to this Agreement) on its capital; or

	
 
	
(iv)
	
the amount of any payment made by a Finance Party or any of its Affiliates, or the amount of any interest or other return foregone by a Finance Party or any of its Affiliates, calculated by reference to any amount received or receivable by that Finance Party or any of its Affiliates from any other Party under this Agreement.

	
(c)
	
As soon as practicable after becoming aware that the Parent is liable, or will become liable, to pay any amount in accordance with the provisions of paragraph (a) above, the Facility Agent will notify the Parent accordingly.

	
15.2
	
Exceptions

Clause 15.1 (Increased costs) does not apply to any increased cost:

	
 
	
(a)
	
compensated for by the operation of Clause 14 (Taxes);

	
 
	
(b)
	
attributed to any change in the rate of, or change in the basis of calculating, tax on the overall net income of a Lender (or the overall net income of a division or branch of that Lender) imposed in the jurisdiction in which its principal office for the time being is situate; 

	
 
	
(c)
	
attributable to the implementation or application of, or compliance with Basel II or any law or regulation that implements or applies Basel II (but excluding any amendment that arises out of Basel III or CRD IV); or

	
 

	
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(d)
	
attributable to a FATCA Deduction required to be made by a Party.

	
15.3
	
Claims

	
(a)
	
A Finance Party intending to make a claim for an Increased Cost must provide the Parent with a certificate confirming the amount of (and the calculation leading to such amount, provided that this shall not in any way require a Finance Party to reveal any information it considers to be confidential about itself or its operations), and the events giving rise to, the claim.

	
(b)
	
Failure or delay on the part of any Finance Party to demand compensation pursuant to this Clause shall not constitute a waiver of such Finance Party’s right to demand such compensation; provided that the Parent shall not be required to compensate a Finance Party pursuant to this Clause for any increased costs incurred or reductions suffered more than six months prior to the date that such Finance Party notifies the Parent of such Finance Party’s intention to claim compensation therefor.

	
16.
	
Illegality

If it is or becomes unlawful in any jurisdiction for a Lender to give effect to any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so, then:

	
 
	
(a)
	
that Lender may notify the Obligors' Agent through the Facility Agent accordingly; and

	
 
	
(b)
	
(i)                      the Borrower shall forthwith prepay the participations of that Lender in all the Loans made to it; and

(ii)                     the Commitments of that Lender shall forthwith be cancelled.

	
17.
	
Guarantee

	
17.1
	
Guarantee and Indemnity

Each Guarantor irrevocably and unconditionally jointly and severally:

	
 
	
(a)
	
as principal obligor guarantees to each Finance Party prompt performance by the Borrower of all its obligations under the Finance Documents;

	
 
	
(b)
	
undertakes with each Finance Party that whenever the Borrower does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall forthwith on demand by the Facility Agent pay that amount as if that Guarantor instead of the Borrower were expressed to be the principal obligor; and

	
 
	
(c)
	
agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for that unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 17 if the amount claimed had been recoverable on the basis of a guarantee.

	
 

	
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17.2
	
Limitations of guarantee by Autoliv ASP, Inc.

The obligations of Autoliv ASP, Inc. under this Clause 17 only extend to the obligations of Autoliv Inc. as Borrower under this Agreement.

	
17.3
	
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.

	
17.4
	
Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 17 will continue or be reinstated as if the discharge, release  or arrangement had not occurred.

	
17.5
	
Waiver of defences

The obligations of each Guarantor under this Clause 17 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 17 (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 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, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or 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.

	
 

	
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17.6
	
Guarantor intent

Without prejudice to the generality of Clause 17.5 (Waiver of defences), each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing. 

	
17.7
	
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 17.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

	
17.8
	
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, 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 17.

	
17.9
	
Deferral of Guarantor's rights

Until all amounts which may be or become payable by the Borrower under or in connection with the Finance Documents have been irrevocably paid in full and unless the Facility 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 or by reason of any amount being payable, or liability arising, under this Clause 17:

	
 
	
(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; 

	
 
	
(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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(d)
	
to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause  17.1 (Guarantee and Indemnity);

	
 
	
(e)
	
to exercise any right of set-off against any Obligor; and/or

	
 
	
(f)
	
to claim or prove as a creditor of any Obligor in competition with any Finance Party.

If a Guarantor receives any benefit, payment or distribution in relation to any such rights it shall hold that benefit, payment or distribution (to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full) on trust for the Finance Parties and shall promptly pay or transfer the same as the Facility Agent may direct for application in accordance with Clause 13 (Payments).

	
17.10
	
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 that 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.

	
17.11
	
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.

	
17.12
	
Consideration and enforceability

	
(a)
	
Each Guarantor represents, warrants and agrees that:

	
 
	
(i)
	
it will receive valuable direct and indirect benefits as a result of the transactions financed by the Loans; and

	
 
	
(ii)
	
these benefits will constitute "reasonably equivalent value" and "fair consideration" as those terms are used in the fraudulent transfer laws.

	
(b)
	
Each Guarantor acknowledges and agrees that the Finance Parties have acted in good faith in connection with the guarantee granted under this Clause 17, and the transactions contemplated by this Agreement.

	
(c)
	
This Clause 17 shall be enforceable against each Guarantor to the maximum extent permitted by the fraudulent transfer laws.

	
 

	
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(d)
	
Each Guarantor's liability under this Clause 17 shall be limited so that no obligation of, or transfer by, a Guarantor under this Clause 17 is subject to avoidance and turnover under the fraudulent transfer laws.

	
(e)
	
For the purposes of this Clause, "fraudulent transfer laws" means applicable United States bankruptcy and state fraudulent transfer and conveyance statutes and the related case law.

	
17.13
	
US Guarantors

	
(a)
	
In this Agreement:

fraudulent transfer law means any applicable United States bankruptcy and State fraudulent transfer and conveyance statute and any related case law;

US Debtor means an Obligor that is incorporated or organised under the laws of the United States of America or any State of the United States of America (including the District of Columbia) or that has a place of business or property in the United States of America. 

US Guarantor means any Guarantor that is a US Debtor; and

terms used in this subclause are to be construed in accordance with the fraudulent transfer laws.

	
(b)
	
Each US Guarantor acknowledges that:

	
 
	
(i)
	
it will receive valuable direct or indirect benefits as a result of the transactions financed by the Finance Documents; 

	
 
	
(ii)
	
those benefits will constitute reasonably equivalent value and fair consideration for the purpose of any fraudulent transfer law; and

	
 
	
(iii)
	
each Finance Party has acted in good faith in connection with the guarantee given by that U.S. Guarantor and the transactions contemplated by the Finance Documents.

	
(c)
	
Each Finance Party agrees that each US Guarantor's liability under this Clause is limited so that no obligation of, or transfer by, any US Guarantor under this Clause is subject to avoidance and turnover under any fraudulent transfer law.

	
(d)
	
Each US Guarantor represents and warrants to each Finance Party that:

	
 
	
(i)
	
the aggregate amount of its debts (including its obligations under the Finance Documents) is less than the aggregate value (being the lesser of fair valuation and present fair saleable value) of its assets;

	
 
	
(ii)
	
its capital is not unreasonably small to carry on its business as it is being conducted;

	
 
	
(iii)
	
it has not incurred and does not intend to incur debts beyond its ability to pay as they mature; and

	
 
	
(iv)
	
it has not made a transfer or incurred any obligation under any Finance Document with the intent to hinder, delay or defraud any of its present or future creditors.

	
(e)
	
Each representation and warranty in this subclause:

	
 
	
(i)
	
is made by each US Guarantor on the date of this Agreement; and

	
 

	
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(ii)
	
is deemed to be repeated by each US Guarantor on the date of each Request and the first day of each Interest Period; and

is, when repeated, applied to the circumstances existing at the time of repetition.

	
18.
	
Representations and Warranties

	
18.1
	
Representations and warranties

Each Obligor makes the representations and warranties set out in this Clause 18 to each Finance Party.

	
18.2
	
Status

	
(a)
	
It is a limited liability company, duly incorporated and validly existing under the laws of the jurisdiction of its incorporation.

	
(b)
	
Each Material Subsidiary has the power to own its assets and carry on its business as it is being conducted.

	
18.3
	
Powers and authority

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

	
18.4
	
Legal validity

Each Finance Document to which it is or will be a party constitutes, or when executed in accordance with its terms will constitute, its legal, valid and binding obligation enforceable in accordance with its terms.

	
18.5
	
Non-conflict

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents to which it is a party do not and will not:

	
 
	
(a)
	
conflict with any law or regulation or judicial or official order; or

	
 
	
(b)
	
conflict with the constitutional documents of any Obligor; or

	
 
	
(c)
	
conflict with any document which is binding upon any Obligor or any asset of any Obligor in a manner which could reasonably be expected to have a material adverse effect.

	
18.6
	
No default

	
(a)
	
No Default is outstanding or might result from the making of any Loan.

	
(b)
	
No other event is outstanding which constitutes (or with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition or any combination of the foregoing, would constitute) a default under any document which is binding on any member of the Group or any asset of any member of the Group to an extent or in a manner which could reasonably be expected to have a material adverse effect.

	
 

	
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18.7
	
Authorisations

	
(a)
	
All authorisations which would reasonably be considered to be required in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents to which it is a party have been obtained or effected (as appropriate) and are in full force and effect.

	
(b)
	
All acts, conditions and things required to be done, fulfilled and performed under the laws of the United States of America in order to make the Finance Documents admissible in evidence in the United States of America have been done, fulfilled and performed.

	
18.8
	
Accounts

In the case of the Parent, the audited consolidated accounts of the Group most recently delivered to the Facility Agent (which, at the date of this Agreement, are the Original Group Accounts):

	
 
	
(i)
	
have been prepared in accordance with accounting principles and practices generally accepted in the USA consistently applied; and

	
 
	
(ii)
	
fairly represent the consolidated financial condition of the Group as at the date to which they were drawn up.

	
18.9
	
Litigation

	
(a)
	
Other than as specifically disclosed to the Facility Agent prior to the date of this Agreement, no litigation, arbitration or administrative proceedings are current or, to its knowledge, pending or threatened, which are reasonably to be expected to be adversely determined, and which might, if adversely determined, have a material adverse effect.

	
(b)
	
In respect of any litigation, arbitration or administrative proceedings disclosed to the Facility Agent prior to the date of this Agreement, there has been no development in the conduct of those proceedings which might have a material adverse effect.

	
18.10
	
Taxes on payments

It will not be required to make any deduction or withholding from any payment it may make to any Finance Party under the Finance Documents.

	
18.11
	
No immunity

In any proceedings taken in England and Wales, the United States of America or any other relevant state or jurisdiction, in each case in relation to the Finance Documents, it will not be entitled to claim for itself or any of its assets immunity from suit, execution, attachment or other legal process.

	
18.12
	
Pari passu ranking

Its obligations under the Finance Documents will rank at least pari passu with the claims of all its other unsecured creditors save those whose claims are preferred solely by any bankruptcy, insolvency, liquidation or other similar laws of general application.

	
 

	
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18.13
	
Winding up: re-organisation etc.

It has not taken any corporate action nor have any other steps been taken or legal proceedings been started or (to the best of its knowledge and belief) threatened against it for its winding-up, dissolution, administration or re-organisation or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer of it or of any or all of its assets or revenues.

	
18.14
	
Environmental Law

Other than as specifically disclosed to the Facility Agent prior to the date of this Agreement, each Obligor is and has been in compliance with all applicable Environmental Laws and Environmental Licenses in all material respects and, so far as it is aware, there are no circumstances that may at any time prevent or interfere with continued compliance by it with all applicable Environmental Laws and Environmental Licenses in all material respects.  Other than as disclosed to the Facility Agent prior to the date of this Agreement, no Environmental Claim is pending or, to the best of its knowledge, threatened against it or any of its properties.

	
18.15
	
ERISA

Each Plan of the Obligors and their respective ERISA Affiliates complies in all material respects with all applicable requirements of law and regulation.  No Reportable Event has occurred with respect to any Plan which might have a material adverse effect, and no steps have been taken to terminate any Plan.  No Obligor or any Subsidiary or ERISA Affiliate of an Obligor has had a complete or partial withdrawal from any Multiemployer Plan or initiated any steps to do so.

	
18.16
	
Investment Company Act

No Obligor is an "investment company" or a company "controlled" by an "investment company", within the meaning of the United States Investment Company Act of 1940, as amended.

	
18.17
	
Federal Power Act

No Obligor is a "public utility" within the meaning of, or otherwise subject to regulation under, the United States Federal Power Act.

	
18.18
	
Other regulation

No Obligor is subject to regulation under any United States Federal or State statute or regulation that limits its ability to incur or guarantee indebtedness.

	
18.19
	
Margin Stock

	
(a)
	
The proceeds of the Loans have been and will be used only for the purposes described in Clause 3 (Purpose).

	
(b)
	
No Obligor is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations U and X of the Board of Governors of the United States Federal Reserve System).

	
(c)
	
None of the transactions contemplated in this Agreement (including, without limitation, the borrowings hereunder and the use of the proceeds thereof) will violate or result in a violation of Section 7 of the Securities Exchange Act of 1934 (or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X).

	
 

	
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18.20
	
Solvency

	
(a)
	
The Parent has not incurred and does not intend to incur or believe it will incur debts beyond its ability to pay as they mature.

	
(b)
	
The Parent has made no transfer or incurred any obligation under this Agreement with the intent to hinder, delay or defraud any of its present or future creditors.

	
(c)
	
For purposes of this Clause 18.20:

	
 
	
(i)
	
debt means any liability on a claim;

	
 
	
(ii)
	
claim means (A) any right to payment, whether or not that right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured, or (B) any right to an equitable remedy for breach of performance if that breach gives rise to payment, whether or not the right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured; and

	
 
	
(iii)
	
terms used in this Clause 18.20 shall be construed in accordance with the applicable United States bankruptcy and New York fraudulent conveyance statutes and the related case law.

	
18.21
	
Stamp duties

No stamp or registration duty or similar taxes or charges are payable in respect of any Finance Document.

	
18.22
	
No Security Interests

Other than as permitted by the provisions of Clause 19.8 (Negative pledge), no Security Interest exists over all or any of its present or future revenues or assets.

	
18.23
	
Material adverse change

There has been no material adverse change in the condition (financial or otherwise) of the Borrower or the Group as a whole since the date of the Original Group Accounts.

	
18.24
	
Jurisdiction and governing law

	
(a)
	
Its:

	
 
	
(i)
	
irrevocable submission under this Agreement to the jurisdiction of the courts of England and New York;

	
 
	
(ii)
	
agreement that this Agreement and any non-contractual obligations arising out of it are governed by English law; and

	
 
	
(iii)
	
agreement not to claim any immunity to which it or its assets may be entitled,

are legal, valid and binding under the laws of its jurisdiction of incorporation.

	
(b)
	
Any judgment obtained in England or in New York will be recognised and be enforceable by the courts of its jurisdiction of incorporation.

	
 

	
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18.25
	
Anti-corruption law

Each member of the Group maintains policies designed to promote compliance with applicable anti-corruption laws and, to the best of its knowledge and belief, having made due and careful enquiry, each such member has conducted its business in accordance, and is in compliance, with those laws.

	
18.26
	
Sanctions

No Obligor, nor any of its respective Subsidiaries or its (or its respective Subsidiaries’) directors or officers or (to the best of its knowledge and belief, having made due and careful inquiry) its (or its respective Subsidiaries’) employees or agents:

	
 
	
(a)
	
is a Sanctions Restricted Party;

	
 
	
(b)
	
is, to the extent it is or should be aware, subject to or involved in any action, claim, suit, proceeding or investigation against it with respect to Sanctions Laws by any Sanctions Authority;

	
 
	
(c)
	
has, to the best of its knowledge and belief, having made due and careful inquiry, directly or indirectly engaged in transactions on behalf of the Group or any Obligor with a Sanctions Restricted Party save to the extent that such a transaction is expressly permitted by the relevant Sanctions Laws; or

	
 
	
(d)
	
has directly or indirectly has engaged in or engages in transactions on behalf of the Group or any Obligor that evade or violate, are intended to evade or violate or attempt to evade or violate, any Sanctions Laws applicable to any Obligor.

The representations and warranties above shall not be made by nor apply to any Obligor in so far as they would violate or expose any Party (including such Obligor) or any of its Subsidiaries or any director, officer or employee thereof to any liability under any anti-boycott or blocking law, regulation or statute that is in force from time to time and applicable to such entity (including without limitation EU Regulation (EC) 2271/96 and Section 7 of the German Foreign Trade Ordinance (Verordnung zur Durchführung des Außenwirtschaftsgesetzes (Außen¬wirtschafts¬verordnung – AWV)).

	
18.27
	
Times for making representations and warranties

The representations and warranties set out in this Clause 18:

	
 
	
(a)
	
are made on the date of this Agreement; and

	
 
	
(b)
	
(with the exception of Clause 18.10 (Taxes on payments), Clause 18.21 (Stamp duties) and Clause 18.23 (Material adverse change)) are deemed to be repeated by each Obligor on the date of each Request, the date of each Extension Request, each date upon which an extension of the Termination Date takes effect in accordance with Clause 2.7 (Extension option) and the first day of each Interest Period, in each case with reference to the facts and circumstances then existing.

	
19.
	
Undertakings

	
19.1
	
Duration

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

	
 

	
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19.2
	
Financial information

The Parent shall supply to the Facility Agent in sufficient copies for all the Lenders:

	
 
	
(a)
	
as soon as the same are available (and in any event within 180 days of the end of each of its financial years), its audited consolidated accounts for that financial year.

	
 
	
(b)
	
as soon as the same are available (and in any event within 90 days of the end of the first half-year of each of its financial years):

	
 
	
(i)
	
its unaudited consolidated accounts for that half-year; and

	
 
	
(ii)
	
the unaudited accounts of Autoliv ASP, Inc. for that half-year.

	
 
	
(c)
	
as soon as the same are available (and in any event within 60 days of the end of each financial quarter):

	
 
	
(i)
	
its unaudited consolidated accounts for that financial quarter; and

	
 
	
(ii)
	
subject to paragraph (d) below, the unaudited accounts of Autoliv ASP, Inc. for that financial quarter.

	
 
	
(d)
	
as soon as the same are available (and in any event within 120 days of the end of that financial quarter) the unaudited accounts of Autoliv ASP, Inc. for the fourth quarter of that financial year.

	
19.3
	
Information - miscellaneous

The Parent shall supply to the Facility Agent:

	
 
	
(a)
	
any press release issued by the Parent and any information in the possession or control of any member of the Group regarding its financial condition and operations about matters which are reasonably likely to affect any Finance Party’s rights under the Finance Documents; and

	
 
	
(b)
	
(unless already provided to the Facility Agent) promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending, and which might, if adversely determined, have a material adverse effect on the financial condition of any Material Subsidiary or on the Group as a whole or on the ability of any Obligor to perform its obligations under this Agreement; and

	
 
	
(c)
	
promptly, such further information in the possession or control of any member of the Group regarding its financial condition and operations as any Finance Party may reasonably request;

	
 
	
(d)
	
immediately upon its occurrence, details of any change in the credit rating assigned to the Parent's long term unsecured and unsubordinated debt by either or both of the Rating Agencies;

	
 
	
(e)
	
promptly upon becoming aware of them, the details of any claim, action, suit, proceeding or investigation pursuant to Sanctions Laws by any Sanctions Authority against it, any of its direct or indirect owners or any other member of the Group or any of their respective directors, officers or employees as well as information on what steps are being taken with regards to answer or oppose such; and

	
 

	
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(f)
	
promptly upon becoming aware that it, any of its direct or indirect owners or any other member of the Group or any of their respective directors, officers or employees has become or is likely to become a Sanctions Restricted Party.

	
19.4
	
Notification of Default

Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon its occurrence.

	
19.5
	
Compliance certificates

	
(a)
	
The Parent shall supply to the Facility Agent:

	
 
	
(i)
	
within five Business Days of delivery of the accounts specified in paragraph (a), (b)(i) and (c)(i) of Clause 19.2 (Financial information); and

	
 
	
(ii)
	
promptly at any other time, if the Facility Agent so requests, a Compliance Certificate signed by one of its senior officers on its behalf:

	
 
	
(A)
	
setting out computations as to compliance with Clause 19.22 (Subsidiary Borrowings) as at the date at which the accounts referred to in paragraph (i) above were drawn up;

	
 
	
(B)
	
confirming the credit ratings which currently apply to the Parent's long term unsecured and unsubordinated debt; and

	
 
	
(C)
	
certifying that no Default is outstanding or, if a Default is outstanding, specifying the Default and the steps, if any, being taken to remedy it.

	
(b)
	
The Parent does not need to supply a Compliance Certificate (the First Certificate) with the audited consolidated accounts delivered in accordance with paragraph (a) of Clause 19.2 (Financial information) if that First Certificate would be the same as the Compliance Certificate (the Second Certificate) supplied with the  unaudited consolidated accounts delivered in accordance with paragraph (c)(i) of Clause 19.2 (Financial information) in respect of the fourth financial quarter of that financial year.  The Parent must instead confirm in writing to the Facility Agent that the First Certificate would be the same as the Second Certificate.

	
19.6
	
Authorisations

Each Obligor shall promptly:

	
 
	
(a)
	
obtain, maintain and comply with the terms of; and

	
 
	
(b)
	
supply certified copies to the Facility Agent of,

any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any Finance Document.

	
19.7
	
Pari passu ranking

Each Obligor shall procure that its obligations under the Finance Documents do and will rank at least pari passu with all its other present and future unsecured obligations, except for obligations mandatorily preferred by law applying to companies generally.

	
 

	
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19.8
	
Negative pledge

	
(a)
	
No Obligor shall, and the Parent shall procure that no other member of the Group will, create or permit to subsist any Security Interest on any of its assets (other than Unrestricted Margin Stock).

	
(b)
	
Paragraph (a) does not apply to:

	
 
	
(i)
	
any lien arising by operation of law in the ordinary course of business and securing amounts not more than 30 days overdue;

	
 
	
(ii)
	
any Security Interest disclosed in writing to the Facility Agent prior to the execution of this Agreement which secures Financial Indebtedness outstanding at the date of this Agreement;

	
 
	
(iii)
	
any Security Interest arising in relation to set-off arrangements between cash balances and bank borrowings with the same bank which arise in the ordinary course of business;

	
 
	
(iv)
	
any Security Interest existing at the time of acquisition on or over any asset acquired by a member of the Group after the date of this Agreement which was not created in contemplation of or in connection with that acquisition, provided that the principal amount secured by such Security Interest and outstanding at the time of acquisition is not subsequently increased and the Security Interest is discharged within three months;

	
 
	
(v)
	
in the case of any company which becomes a member of the Group after the date of this Agreement, any Security Interest existing on or over its assets when it becomes a member of the Group which was not created in contemplation of or in connection with it becoming a member of the Group, provided that:

	
 
	
(A)
	
the principal amount secured by such Security Interest and outstanding when the relevant company became a member of the Group is not increased;

	
 
	
(B)
	
no amount is secured by any such Security Interest which is not secured by the relevant Security Interest when the relevant company becomes a member of the Group; and

	
 
	
(C)
	
the Security Interest is discharged within three months;

	
 
	
(vi)
	
any Security Interest replacing any of the Security Interests permitted by paragraphs (iv) and (v), provided that the amount secured by any replacement Security Interest shall not exceed the amount outstanding and secured by the original Security Interest at the time of the creation of the replacement Security Interest, the value of the replacement asset over which the replacement Security Interest is created does not exceed the value of the asset over which the original Security Interest was held, the replacement Security Interest secures the same obligations as the original Security Interest and such replacement Security Interest is discharged within the original three-month period specified in paragraphs (iv) and (v); and

	
 
	
(vii)
	
any other Security Interest provided that at the time that the Security Interest is created, the aggregate amount of indebtedness secured by all Security Interests permitted under this (b)(vii) of Clause 19.8 (other than those permitted by subparagraphs (b)(i) to (b)(vi) above of this Clause 19.8), when taken together with the aggregate value of financing raised or the amount involved in the financing of an asset in transactions described in Clause 19.9 (Transactions similar to security), does not exceed five per cent. of the book value of the consolidated total assets of the Group, as determined by reference to the most recent consolidated accounts of the Group delivered pursuant to Clause 19.2 (Financial information).

	
 

	
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19.9
	
Transactions similar to security

No Obligor shall, and the Parent shall procure that no other Material Subsidiary will:

	
 
	
(a)
	
sell, transfer or otherwise dispose of a material part of its assets (either in one transaction or a series of transactions, whether related or not) on terms whereby it is or may be leased to or re-acquired or acquired by a member of the Group or any of its related entities; or

	
 
	
(b)
	
sell, transfer or otherwise dispose of any of its receivables on recourse terms, except for the discounting of bills or notes in the ordinary course of trading,

in each case, in circumstances where the transaction is entered into primarily as a method of raising finance or of financing the acquisition of an asset, save where the aggregate of (i) financing raised or the amount involved in the financing of the acquisition of an asset in transactions described in this Clause 19.9 (Transactions similar to security) and (ii) the Security Interests permitted by sub-paragraph (b)(vii) of Clause 19.8 (Negative pledge), does not exceed five per cent. of the book value of the consolidated total assets of the Group, as determined by reference to the most recent consolidated accounts of the Group delivered pursuant to Clause 19.2 (Financial information).  This paragraph does not apply to Unrestricted Margin Stock.

	
19.10
	
Disposals

	
(a)
	
No Obligor shall, and the Parent shall procure that no other Material Subsidiary will, either in a single transaction or in a series of transactions, whether related or not and whether voluntarily or involuntarily, sell, transfer, grant or lease or otherwise dispose of all or any substantial part of its assets.

	
(b)
	
Paragraph (a) does not apply to:

	
 
	
(i)
	
disposals made in the ordinary course of trading of the disposing entity; or

	
 
	
(ii)
	
disposals of assets in exchange for other assets comparable or superior as to type, value and quality; or

	
 
	
(iii)
	
disposals made on an arms length basis for full market consideration; or

	
 
	
(iv)
	
disposals made with the prior written consent of the Majority Lenders; or

	
 
	
(v)
	
any disposal of assets from:

	
 
	
(A)
	
an Obligor to another Obligor; or

	
 
	
(B)
	
a Material Subsidiary (other than an Obligor) to an Obligor or any other Subsidiary; or

	
 
	
(C)
	
any other Subsidiary of the Parent to any member of the Group,

provided that all such disposals in this paragraph (v) are made for full market consideration; or

	
 
	
(vi)
	
any disposal made to Veoneer (or any of its Subsidiaries) pursuant to the Spin-Off. 

	
 

	
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19.11
	
Change of business

The Parent shall procure that no substantial change is made to the general nature or scope of the business of the Parent or of the Group from that carried on at the date of this Agreement other than as a consequence of the Spin-Off.

	
19.12
	
Mergers

The Parent shall not, without the prior written consent of the Majority Lenders, finalise or effectuate any amalgamation, demerger, merger or reconstruction other than as a consequence of the Spin-Off.

	
19.13
	
Insurances

Each Obligor shall, and the Parent will procure that the Group taken as a whole will, effect and maintain such insurance over and in respect of its property, assets and business with reputable underwriters or insurance companies and in such a manner and to such extent as is reasonable and customary for a business enterprise engaged in the same or similar businesses and in the same or similar localities.

	
19.14
	
Third party guarantees

No Obligor shall, and will ensure that no other member of the Group shall, without the prior consent of the Majority Lenders, grant any guarantee, bond, indemnity, counter-indemnity or similar instrument in respect of any material obligation of a person other than a member of the Group, save for:

	
 
	
(a)
	
on the terms of the Finance Documents; 

	
 
	
(b)
	
any guarantee related to the purchase or supply of goods and/or services by such Obligor or a member of the Group or a consortium or a group of companies of which such Obligor or a member of the Group is a party, which guarantee is given in the ordinary course of business; or

	
 
	
(c)
	
any other guarantee where the aggregate amount of material obligations guaranteed by all such guarantees does not exceed US$50,000,000 at any time. 

	
19.15
	
Environmental Matters

Each Obligor that directly or indirectly owns, leases, occupies or uses real property in the United States shall, in all material respects, comply with:

	
 
	
(a)
	
all applicable Environmental Law; and

	
 
	
(b)
	
the terms and conditions of all Environmental Licenses applicable to it,

and for this purpose will implement procedures to monitor compliance with and to prevent any liability under Environmental Law.

	
19.16
	
Notice requirements

Each Obligor will give the Facility Agent prompt notice of the occurrence of any of the following events:

	
 
	
(a)
	
non-compliance in any material respect with any Environmental Law or Environmental License of which it is aware;

	
 

	
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(b)
	
any Environmental Claim or any other claim, notice or other communication served on it in respect of any alleged breach of any Environmental Law or Environmental License which could reasonably be expected to have a material adverse effect;

	
 
	
(c)
	
any actual or suspected Environmental Contamination which might have a material adverse effect;

	
 
	
(d)
	
any Reportable Event;

	
 
	
(e)
	
termination of any Plan maintained, or contributed to, by the Obligor or any ERISA Affiliate or any action that might result in termination of a Plan; or

	
 
	
(f)
	
complete or partial withdrawal from any Multiemployer Plan by the Obligor or any ERISA Affiliate or any action that might result in complete or partial withdrawal from any Multiemployer Plan.

In each notice delivered under this Clause, the relevant Obligor will include reasonable details concerning the occurrence that is the subject of the notice as well as the Obligor's proposed course of action, if any.  Delivery of a notice under this Clause will not affect the Obligor's obligations to comply with any other provision of this Agreement.

	
19.17
	
Investment Company Act

No Obligor will, either by act or omission, become, or permit any other Obligor to become, an "investment company" or a company "controlled" by an "investment company", within the meaning of the United States Investment Company Act of 1940, as amended.

	
19.18
	
Public utility status

No Obligor will, either by act or omission, become or permit any other Obligor or, as a result of its obligations under this Agreement, the Lender to become subject to regulation under the United States Federal Power Act of 1920, as amended.

	
19.19
	
ERISA

No Obligor will take any action or omit to take any action or permit any Subsidiary or ERISA Affiliate to take any action or omit to take any action with respect to any Plan that might result in the imposition of a lien or other Security Interest on any property of the Obligor or any Subsidiary or otherwise have a material adverse effect.

	
19.20
	
Margin Stock

The Obligors will use the proceeds of the Loans only for the purpose described in Clause 3 (Purpose).  No Obligor will engage in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations U and X issued by the Board of Governors of the United States Federal Reserve System).  The Obligors shall procure that none of the proceeds of the Loans will be used for any purpose that will violate or result in the violation of Section 7 of the Securities Exchange Act of 1934 (or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X).  If requested by the Facility Agent, the Obligors' Agent will furnish to the Facility Agent in connection with any Loan hereunder a statement in conformity with the requirements of Federal Reserve Form U-1 referred to in Regulation U.

	
 

	
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19.21
	
Solvency

The Parent will, at all times, maintain sufficient capital to conduct its current and proposed business and operations, maintain its ability to pay its debts as they become due, and continue to own property having a value – both at fair valuation and at present fair saleable value – greater than the total amount of the probable liability of the Parent on its debts and obligations (including this Agreement).

	
19.22
	
Subsidiary Borrowings

	
(a)
	
In this Clause 19.22:

Borrowings means:

	
 
	
(a)
	
the outstanding principal amount of any monies borrowed;

	
 
	
(b)
	
the outstanding principal amount of any debenture, bond, note, loan stock or other security;

	
 
	
(c)
	
the outstanding principal amount of any acceptance under any acceptance credit opened by a bank or other financial institution and not attributable to goods or documents of title to goods in the ordinary course of documentary credit transactions;

	
 
	
(d)
	
the principal amount, outstanding for more than 90 days on its original terms and created in connection with the payment of the acquisition price of any asset before or after the time of acquisition or possession by the party liable, where the advance or deferred payment is arranged primarily as a method of raising finance or financing the acquisition of an asset;

	
 
	
(e)
	
any fixed or minimum premium payable on the repayment or redemption of any instrument referred to in subparagraph (b) above; and

	
 
	
(f)
	
the outstanding principal amount of any indebtedness of any person of a type referred to in subparagraphs (a) - (e) above which is the subject of a guarantee indemnity and/or other form of assurance against financial loss.

For the avoidance of doubt, the amount of any provision for pension liabilities made in the accounts delivered in accordance with Clause 19.2 (Financial information) shall not constitute Borrowings for the purposes of this definition.

Subsidiary Borrowings means, at any time, the aggregate amount of all Borrowings of the Parent's Subsidiaries (other than the Borrower, Autoliv ASP, Inc., Veoneer (and each of its Subsidiaries) and Autoliv AB (publ)) at that time (without double counting in relation to intra‐Group Borrowings or guarantees given by one Subsidiary in relation to the Borrowings of another).

	
(b)
	
For the purposes of this Clause 19.22 figures shall be expressed in US Dollars and, where any currency has to be converted into US Dollars for this purpose, such conversion shall be made at the rate of exchange applied in the relevant financial accounts delivered under Clause 19.2 (Financial information).

	
(c)
	
The Parent shall procure that Subsidiary Borrowings shall at no time exceed US$600,000,000 (or its equivalent).

	
 

	
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19.23
	
Know your customer requirements

	
(a)
	
Each Obligor must promptly on the request of any Finance Party supply to that Finance Party documentation or other evidence which is reasonably requested by that Finance Party (whether for itself, on behalf of any Finance Party or any prospective new Lender) to enable a Finance Party or prospective new Lender to carry out and be satisfied with the results of all applicable know your customer requirements.

	
(b)
	
Each Lender must promptly on the request of the Facility Agent supply to the Facility Agent documentation or other evidence which is reasonably required by the Facility Agent to carry out and be satisfied with the results of all applicable know your customer requirements.

	
(c)
	
Each Lender agrees that any information it receives under this Clause 19.23 (Know your customer requirements) shall be kept confidential in accordance with Clause 29 (Disclosure of Information).

	
19.24
	
Anti-corruption law

	
(a)
	
Each Obligor shall ensure that it, and each of its Subsidiaries:

	
 
	
(i)
	
maintains policies designed to promote compliance with applicable anti-corruption laws; and

	
 
	
(ii)
	
complies at all times (to the best of its knowledge and belief, having made due and careful enquiry) with those laws.

	
(b)
	
No Obligor will (and each Obligor shall ensure that none of their respective Subsidiaries will) directly or indirectly use the proceeds of the Loans for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other applicable jurisdictions.

	
19.25
	
Sanctions

	
(a)
	
Each Obligor shall ensure that none of them, nor any of their respective Subsidiaries or their (or their respective Subsidiaries’) directors, officers or employees when acting on behalf of the Group or any Obligor:

	
 
	
(i)
	
is or will become a Sanctions Restricted Party;

	
 
	
(ii)
	
require any Finance Party to take any action that would cause it to violate any Sanctions Laws, it being understood that any Finance Party can refuse to honour any such request otherwise validly made by the Borrower under this Agreement; and

	
 
	
(iii)
	
breach any Sanctions Laws.

	
(b)
	
No Obligor will (and each Obligor shall ensure that none of their respective Subsidiaries will) directly or indirectly use the proceeds of the Loans, or lend, contribute or otherwise make available such proceeds:

	
 
	
(i)
	
to, or for the benefit of, any person who, at the time at which such proceeds are used, lent, contributed or otherwise made available to, or for the benefit of, that person, is a Sanctions Restricted Party;

	
 
	
(ii)
	
in a manner which would violate Sanctions Law applicable to any Finance Party.

	
 

	
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(c)
	
Each Obligor will maintain policies designed to promote compliance by it and their respective Subsidiaries with Sanctions Laws applicable to the Obligors and their respective Subsidiaries and the business of each Obligor and their respective Subsidiaries.

	
19.26
	
Capital contribution to Veoneer

The Obligors shall not make a capital contribution into Veoneer which is greater than US$1,200,000,000.

	
20.
	
Default

	
20.1
	
Events of Default

Each of the events set out in this Clause 20 is an Event of Default (whether or not caused by any reason whatsoever outside the control of an Obligor or any other person).

	
20.2
	
Non-payment

An Obligor does not pay on the due date any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable and, if the non-payment is caused solely by administrative or technical error, or relates solely to non-payment of interest or fees, it is not remedied within three Business Days.

	
20.3
	
Breach of other obligations

An Obligor does not comply with any provision of the Finance Documents (other than Clause  19.25 (SanctionsSanctions)) and those referred to in Clause 20.2 (Non-payment)), provided that, if such non-compliance is capable of remedy, such non-compliance remains unremedied for a period of 14 days.

	
20.4
	
Misrepresentation

A representation, warranty or statement made or repeated or deemed to be repeated in or in connection with any Finance Document or in any document delivered by or on behalf of an Obligor under or in connection with any Finance Document (other than the representations and warranties in Clause 18.26 (Sanctions)) is incorrect in any material respect when made or repeated or deemed to be repeated.

	
20.5
	
Cross-default

	
(a)
	
Any Financial Indebtedness of a member of the Group is not paid when due or within any applicable grace period provided for in the relevant documentation.

	
(b)
	
An event of default howsoever described occurs under any document relating to Financial Indebtedness of a member of the Group.

	
(c)
	
Any Financial Indebtedness of a member of the Group becomes prematurely due and payable or is placed on demand as a result of an event of default (howsoever described) under the document relating to that Financial Indebtedness.

	
(d)
	
Any commitment for, or underwriting of, any Financial Indebtedness of a member of the Group is cancelled or suspended as a result of an event of default (howsoever described) under the document relating to that Financial Indebtedness.

	
 

	
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(e)
	
Any Security Interest securing Financial Indebtedness over any asset of a member of the Group becomes enforceable.

	
(f)
	
No Event of Default shall occur under this Clause 20.5 unless the aggregate amount of all the Financial Indebtedness with respect to which an event or events under paragraphs (a) to (e) above occurs or occur is at least US$80,000,000 (or its equivalent in other currencies).

	
20.6
	
Insolvency

	
(a)
	
An Obligor or any Material Subsidiary is, or is deemed for the purposes of any law to be, unable to pay its debts as they fall due or to be insolvent, or admits inability to pay its debts as they fall due.

	
(b)
	
An Obligor or any Material Subsidiary suspends making payments on all or any class of its debts or announces an intention to do so, or a moratorium is declared in respect of any of its indebtedness.

	
(c)
	
An Obligor or any Material Subsidiary, by reason of financial difficulties, begins negotiations with one or more of its creditors (excluding any Finance Party in its capacity as such) with a view to the readjustment or rescheduling of any of its indebtedness.

	
20.7
	
Insolvency proceedings

	
(a)
	
Any step (including petition, proposal or convening a meeting) is taken with a view to a composition, assignment or arrangement with any creditors of an Obligor or any Material Subsidiary.

	
(b)
	
A meeting of an Obligor or any Material Subsidiary is convened for the purpose of considering any resolution for (or to petition for) its winding-up or for its administration or any such resolution is passed.

	
(c)
	
Any person presents a petition for the winding-up or for the administration of an Obligor or any Material Subsidiary, other than a petition which is frivolous or vexatious, or which is dismissed within 30 days.

	
(d)
	
An order for the winding-up or administration of an Obligor or any Material Subsidiary is made.

	
(e)
	
Any other step (including petition, proposal or convening a meeting) is taken with a view to the rehabilitation, administration, custodianship, liquidation, winding-up or dissolution of an Obligor or any Material Subsidiary or any other insolvency proceedings involving an Obligor or any Material Subsidiary, unless such step is taken by a third party and is frivolous or vexatious.

	
20.8
	
Appointment of receivers and managers

	
(a)
	
Any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like is appointed in respect of an Obligor or any Material Subsidiary or any part of its assets.

	
(b)
	
The directors of an Obligor or any Material Subsidiary requests the appointment of a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like.

	
(c)
	
Any other steps are taken to enforce any Security Interest over any part of the assets of an Obligor or any Material Subsidiary, unless such steps are considered (in the reasonable opinion of the Facility Agent) to be frivolous or vexatious.

	
 

	
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20.9
	
Creditors' process

Any attachment, sequestration, distress or execution affects any asset of an Obligor or any Material Subsidiary and is not discharged within 14 days.

	
20.10
	
Analogous proceedings

There occurs, in relation to an Obligor or any Material Subsidiary, any event anywhere which appears to correspond with any of those mentioned in Clauses 20.6 (Insolvency) to 20.9 (Creditors' process) (inclusive).

	
20.11
	
Cessation of business

An Obligor or any Material Subsidiary ceases, or threatens to cease, to carry on all or a substantial part of its business other than as a direct consequence of the Spin-Off.

	
20.12
	
US Bankruptcy Laws

	
(a)
	
Any Obligor makes a general assignment for the benefit of creditors.

	
(b)
	
Any Obligor commences a voluntary case or proceeding under the United States Bankruptcy Code or under any other United States Federal or State bankruptcy, insolvency or other similar law (collectively US Bankruptcy Law).

	
(c)
	
An involuntary case under any US Bankruptcy Law is commenced against any Obligor and the petition is not controverted within 30 days and is not dismissed or stayed within 90 days after commencement of the case.

	
(d)
	
A custodian, conservator, receiver, liquidator, assignee, trustee, sequestrator or other similar official is appointed under any US Bankruptcy Law for or takes charge of, all or substantial part of the property of any Obligor.

	
(e)
	
An order for relief or other order approving any case or proceeding is entered under any US Bankruptcy Law.

	
20.13
	
ERISA

	
(a)
	
Any event or condition occurs that presents a material risk that any Obligor or any ERISA Affiliate may incur a material liability to a Plan or, with respect to any Plan, to the United States Internal Revenue Service or to the United States Pension Benefit Guaranty Corporation.

	
(b)
	
Any failure by any Plan to satisfy the minimum funding requirements of section 412 or 430 of the US Code, as amended, or section 302 of ERISA applicable to such Plan, whether or not waived, where such failure could reasonably be expected to result in a material adverse effect.

	
20.14
	
Acceleration

	
(a)
	
Upon the occurrence of an Event of Default described in Clause 20.12 (US Bankruptcy Laws):

	
 
	
(i)
	
the Total Commitments will, if not already cancelled under this Agreement, immediately and automatically be cancelled; and

	
 
	
(ii)
	
the Loans, together with accrued interest, and all other amounts outstanding under the Finance Documents, will be immediately due and payable, without the requirement of notice or any other formality.

	
 

	
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(b)
	
On and at any time after the occurrence of an Event of Default for as long as such Event of Default is continuing (other than an Event of Default described in Clause 20.12 (US Bankruptcy Laws)) the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Obligors' Agent:

	
 
	
(i)
	
cancel the Total Commitments; and/or

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

	
 
	
(iii)
	
demand that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent acting on the instructions of the Majority Lenders.

	
21.
	
The Facility Agent and the Co-ordinators

	
21.1
	
Appointment and duties of  the Facility Agent

	
(a)
	
Each Finance Party (other than the Facility Agent) irrevocably appoints the Facility Agent to act as its agent under and in connection with the Finance Documents.

	
(b)
	
Each Party appointing the Facility Agent irrevocably authorises the Facility Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental rights, powers and discretions.

	
21.2
	
Duties of  the Facility Agent

	
(a)
	
The Facility Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

	
(b)
	
Subject to paragraph (c) below, the Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility Agent for that Party by any other Party.

	
(c)
	
Paragraph (b) above shall not apply to any Novation Certificate.

	
(d)
	
Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

	
(e)
	
If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

	
(f)
	
If the Facility Agent is aware of the non-payment of any principal, interest, ticking fee or other fee payable to a Finance Party (other than the Facility Agent or a Co-ordinator) under this Agreement it shall promptly notify the other Finance Parties.

	
(g)
	
The Facility Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

	
 

	
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21.3
	
Instructions

	
(a)
	
The Facility Agent shall:

	
 
	
(i)
	
unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it in accordance with any instructions given to it by:

	
 
	
(A)
	
all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and

	
 
	
(B)
	
in all other cases, the Majority Lenders; and

	
 
	
(ii)
	
not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above.

	
(b)
	
The Facility Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion.  The Facility Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested.

	
(c)
	
Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Facility Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

	
(d)
	
The Facility Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

	
(e)
	
In the absence of instructions, the Facility Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

	
(f)
	
The Facility 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.

	
21.4
	
Role of the Co-ordinators

Except as specifically provided in this Agreement, no Co-ordinator has any obligations of any kind to any other Party under or in connection with any Finance Document.

	
21.5
	
No fiduciary duties

	
(a)
	
Nothing in any Finance Document constitutes the Facility Agent or a Co-ordinator as a trustee or fiduciary of any other person.

	
(b)
	
Neither the Facility Agent nor a Co-ordinator 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.

	
 

	
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21.6
	
Business with the Group

The Facility Agent and each Co-ordinator may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

	
21.7
	
Rights and discretions 

	
(a)
	
The Facility Agent may rely on

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

	
 
	
(ii)
	
assume that:

	
 
	
(A)
	
any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance Documents; and

	
 
	
(B)
	
unless it has received notice of revocation, that those instructions have not been revoked; and

	
 
	
(iii)
	
rely on a certificate from any person:

	
 
	
(A)
	
as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or 

	
 
	
(B)
	
to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.

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

	
 
	
(i)
	
no Default has occurred (unless it has actual knowledge of a Default arising under Clause 20.2 (Non-payment));

	
 
	
(ii)
	
any right, power, authority or discretion vested in any Party or any group of Lenders has not been exercised; and

	
 
	
(iii)
	
any notice or request made by the Parent is made on behalf of and with the consent and knowledge of all the Obligors.

	
(c)
	
The Facility Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

	
(d)
	
Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Facility Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Facility Agent (and so separate from any lawyers instructed by the Lenders) if the Facility Agent in its reasonable opinion deems this to be necessary.

	
(e)
	
The Facility Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Facility Agent or by any 

	
 

	
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other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

	
(f)
	
The Facility Agent may act in relation to the Finance Documents through its officers, employees and agents.

	
(g)
	
Unless a Finance Document expressly provides otherwise the Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

	
(h)
	
Notwithstanding any other provision of any Finance Document to the contrary, no Facility Agent or Co-ordinator 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.

	
(i)
	
Notwithstanding any provision of any Finance Document to the contrary, the Facility Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

	
21.8
	
Responsibility for documentation

Neither the Facility Agent nor any Co-ordinator is responsible to any other Party for:

	
 
	
(a)
	
the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Facility Agent, a Co-ordinator, an Obligor or any other person in or in connection with any Finance Document or the transactions contemplated in 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; or

	
 
	
(b)
	
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, under or in connection with any Finance Document; or

	
 
	
(c)
	
any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

	
21.9
	
No duty to monitor

The Facility Agent shall not be bound to enquire:

	
 
	
(a)
	
whether or not any Default has occurred;

	
 
	
(b)
	
as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

	
 
	
(c)
	
whether any other event specified in any Finance Document has occurred.

	
 

	
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21.10
	
Exclusion of liability

	
(a)
	
Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Facility Agent), the Facility Agent will not be liable for:

	
 
	
(i)
	
any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct;

	
 
	
(ii)
	
exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document, other than by reason of its gross negligence or wilful misconduct; or

	
 
	
(iii)
	
without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, without limitation, for negligence or any other category of liability whatsoever  but not including any claim based on the fraud of the Facility Agent) arising as a result of:

	
 
	
(A)
	
any act, event or circumstance not reasonably within its control; or

	
 
	
(B)
	
the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.

	
(b)
	
No Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the Facility 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 Facility Agent may rely on this subclause and enforce its terms under the Contracts (Rights of Third Parties) Act 1999.

	
(c)
	
The Facility 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 Facility Agent if the Facility 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 Facility Agent for that purpose. 

	
(d)
	
Nothing in this Agreement shall oblige the Facility Agent or a Co-ordinator to carry out:

	
 
	
(i)
	
any "know your customer" or other checks in relation to any person; or

	
 
	
(ii)
	
any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender,

on behalf of any Lender and each Lender confirms to the Facility Agent and each Co-ordinator 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 Facility Agent or Co-ordinator.

	
 

	
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(e)
	
Without prejudice to any provision of any Finance Document excluding or limiting  the Facility Agent's liability, any liability of the Facility Agent arising under or in connection with any Finance Document shall be limited to the amount of actual loss which has been suffered (as determined by reference to the date of default of the Facility Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Facility Agent at any time which increase the amount of that loss.  In no event shall the Facility Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Facility Agent has been advised of the possibility of such loss or damages.

	
21.11
	
Indemnities

	
(a)
	
Without limiting the liability of the Borrower under the Finance Documents, each Lender shall forthwith on demand indemnify the Facility Agent, for that Lender's proportion of any liability or loss (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Facility Agent in any way relating to or arising out of its acting as the Facility Agent, except to the extent that the liability or loss arises directly from the Facility Agent 's gross negligence or wilful misconduct (or, in the case of any cost, loss or liability pursuant to Clause 13.9 (Disruption to Payment Systems) notwithstanding the Facility Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent).

	
(b)
	
A Lender's proportion of the liability or loss set out in paragraph (a) above will be the proportion which the Original Dollar Amount of its participation in the Loans (if any) bears to the Original Dollar Amount of all the Loans on the date of the demand.  However, if there are no such Loans outstanding on the date of demand, then the proportion will be the proportion which its Commitment bears to the Total Commitments at the date of demand or, if the Total  Commitments have then been cancelled, bore to the Total Commitments immediately before being cancelled.

	
21.12
	
Resignation of the Facility Agent

	
(a)
	
The Facility Agent may resign and appoint one of its Affiliates as successor by giving notice to the Lenders and the Parent.

	
(b)
	
Alternatively the Facility Agent may resign by giving 30 days' notice to the Lenders and the Parent, in which case the Majority Lenders (after consultation with the Parent) may appoint a successor Facility Agent.

	
(c)
	
If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Facility Agent (after consultation with the Parent) may appoint a successor Facility Agent.

	
(d)
	
If the Facility Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Facility Agent is entitled to appoint a successor Facility Agent under paragraph (c) above, the Facility Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Facility Agent to become a party to this Agreement) agree with the proposed successor Facility Agent amendments to this Clause 21 and any other term of this Agreement dealing with the rights or obligations of the Facility Agent consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor  Facility Agent's normal fee rates and those amendments will bind the Parties.

	
 

	
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(e)
	
The retiring Facility Agent shall, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the purposes of performing its functions as agent under the Finance Documents.  The Parent shall, within three Business Days of demand, reimburse the retiring Facility Agent for the amount of all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing such assistance.

	
(f)
	
The Facility Agent's resignation notice shall only take effect upon the appointment of a successor.  On giving the notification, the successor Facility Agent will succeed to the position of the Facility Agent and the term Facility Agent will mean the successor Facility Agent.

	
(g)
	
Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (e) above) but shall remain entitled to the benefit of Clause 25.3 (Indemnity to the Facility Agent) and this Clause 21 (and any agency fees for the account of the retiring Facility Agent shall cease to accrue from (and shall be payable on) that date).  Any 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.

	
(h)
	
After consultation with the Parent, the Majority Lenders may, by notice to the Facility Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Facility Agent shall resign in accordance with paragraph (b) above.

	
(i)
	
The Facility Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Facility Agent pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent under the Finance Documents, either: 

	
 
	
(i)
	
the Facility Agent fails to respond to a request under Clause 14.7 (FATCA Information) and the Parent or a Finance Party reasonably believes that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

	
 
	
(ii)
	
the information supplied by the Facility Agent pursuant to Clause 14.7 (FATCA Information) indicates that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or 

	
 
	
(iii)
	
the Facility Agent notifies the Parent and a Finance Party that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

and (in each case) the Parent or a Finance Party reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Facility Agent were a FATCA Exempt Party, and the Parent or that Finance Party, by notice to the Facility Agent, requires it to resign.

	
21.13
	
Confidentiality

	
(a)
	
In acting as agent for the Finance Parties, the Facility 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 Facility Agent, it may be treated as confidential to that division or department and the Facility Agent shall not be deemed to have notice of it.

	
 

	
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21.14
	
Relationship with the Lenders

	
(a)
	
The Facility Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Facility Agent's principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

	
 
	
(i)
	
entitled to or liable for any payment due under any Finance Document on that day; and

	
 
	
(ii)
	
entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

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)
	
Any Lender may by notice to the  Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address and (where communication by electronic mail or other electronic means is permitted under Clause 35.3 (Electronic communication)) electronic mail address and/or any other information required to enable the transmission of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, electronic mail address (or such other information), department and officer by that Lender for the purposes of Clause 35.2 (Addresses for notices) and paragraph (a)(ii) of Clause 35.3 (Electronic communication) and the Facility Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

	
21.15
	
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 Facility Agent and each Co-ordinator 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 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 or completeness any information provided by the Facility Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

	
 

	
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21.16
	
 Facility Agent's management time

Any amount payable to the Facility Agent under Clause 25.3 (Indemnity to the Facility Agent), Clause 23 (Expenses) and Clause 21.11 (Indemnities) shall include the cost of utilising  the Facility Agent's management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent may notify to the Parent and the Lenders, and is in addition to any fee paid or payable to the Facility Agent under Clause 22 (Fees).

	
21.17
	
Deduction from amounts payable by the Facility Agent

If any Party owes an amount to the Facility Agent under the Finance Documents the Facility Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Facility 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.

	
21.18
	
Role of Reference Banks

	
(a)
	
No Reference Bank is under any obligation to provide a quotation or any other information to the Facility Agent.

	
(b)
	
No Reference Bank will be liable for any action taken by it under or in connection with any Finance Document, or for any Reference Bank Quotation, unless directly caused by its gross negligence or wilful misconduct.

	
(c)
	
No Party (other than the relevant Reference Bank) may take any proceedings against any officer, employee or agent of any Reference Bank in respect of any claim it might have against that Reference Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or agent of each Reference Bank may rely on this Clause 21.18 subject to paragraph (d) of Clause 1.2 (Construction) and the provisions of the Contracts (Rights of Third Parties) Act 1999.

	
21.19
	
Third party Reference Banks

A Reference Bank which is not a Party may rely on Clause 21.18 (Role of Reference Banks), paragraph (b) of Clause 27.2 (Exceptions) and Clause 30 (Confidentiality of Funding Rates and Reference Bank Quotations) subject to paragraph (d) of Clause 1.2 (Construction) and the provisions of the Contracts (Rights of Third Parties) Act 1999.

	
22.
	
Fees

	
22.1
	
Upfront fee

The Parent shall pay to each Lender (through the Facility Agent) an upfront fee in an amount agreed in the Fee Letter between the Facilities Agent, the Lenders and the Parent. The upfront fee is payable on the Signing Date and the Drawdown Date as agreed in the Fee Letter.

	
22.2
	
Facility Agent's fee

The Parent shall pay to the Facility Agent for its own account an agency fee in the amount agreed in the Fee Letter between the Facility Agent and the Obligors.  The agency fee is payable annually in advance.  The first payment of this fee is payable within five Business Days of the date of this Agreement and each subsequent payment is payable on each anniversary of the date of this 

	
 

	
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Agreement for so long as any amount is or may be outstanding under this Agreement or any Commitment is in force.

	
22.3
	
Ticking fee

	
(a)
	
The Parent shall pay to each Lender (through the Facility Agent) a ticking fee in US Dollars computed at the rate set out in the table below on the undrawn, uncancelled amount of that Lender’s Commitment:

 

		
	
Number of Months from Signing Date
	
Ticking Fee (per cent per annum of the applicable Margin)

	
From and including the Signing Date to the date falling one month after the Signing Date
	
0%

	
From and including the date falling one month after the Signing Date to the date falling two months after the Signing Date
	
10%

	
From and including the date falling two months after the Signing Date to the date falling three months after the Signing Date
	
20%

	
From and including date falling three months after the Signing Date to the date falling four months after the Signing Date
	
30%

	
(b)
	
Ticking fee will accrue on each day on which any Commitment is in force.  For this purpose Loans shall be taken at their Original Dollar Amount.

	
(c)
	
Accrued ticking fee shall be payable quarterly in arrear from the date of this Agreement.  Accrued ticking fee shall also be payable to the Facility Agent for the relevant Lender on the cancelled amount of its Commitment at the time the cancellation comes into effect.

	
(d)
	
No ticking fee is payable to a Lender on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

	
22.4
	
Extension Fee

	
(a)
	
The Parent must pay to the Facility Agent for each Lender following delivery of an Extension Request pursuant to Clause 2.7 (Extension option) an extension fee computed at the rate of 0.05 per cent. of that Lender's extended Commitments.

	
(b)
	
The extension fee is payable on the Initial Termination Date, on the amount of each Lender's extended Commitments in respect of that Extension Request.

	
22.5
	
VAT

Any fee referred to in this Clause 22 is exclusive of any value added tax or any other direct tax which might be chargeable in connection with that fee.  If any value added tax or other direct tax is so chargeable, it shall be paid by the Borrower at the same time as it pays the relevant fee.

	
 

	
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23.
	
Expenses

	
23.1
	
Initial and special costs

The Parent shall forthwith on demand pay the Facility Agent and the Co-ordinators the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in connection with:

	
 
	
(a)
	
the negotiation, preparation, printing and execution of:

	
 
	
(i)
	
this Agreement and any other documents referred to in this Agreement; and

	
 
	
(ii)
	
any other Finance Document executed after the date of this Agreement; and

	
 
	
(b)
	
any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of an Obligor or, in the case of Clause 2.5 (Change of currency), the Facility Agent, and relating to a Finance Document or a document referred to in any Finance Document.

	
 
	
(c)
	
any other matter, not of an ordinary administrative nature, arising out of or in connection with a Finance Document.

	
23.2
	
Enforcement costs

The Parent shall forthwith on demand pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

	
24.
	
Stamp Duties

The Parent shall pay and forthwith on demand indemnify each Finance Party against any liability it incurs in respect of, any stamp, registration and similar tax which is or becomes payable in connection with the entry into, performance or enforcement of any Finance Document.

	
25.
	
Indemnities

	
25.1
	
Currency indemnity

	
(a)
	
If a Finance Party receives an amount in respect of an Obligor's liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order in a currency other than the currency (the contractual currency) in which the amount is expressed to be payable under the relevant Finance Document:

	
 
	
(i)
	
that Obligor shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion;

	
 
	
(ii)
	
if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business is less than the amount owed in the contractual currency, the Obligor concerned shall forthwith on demand pay to that Finance Party an amount in the contractual currency equal to the deficit; and

	
 
	
(iii)
	
the Obligor shall forthwith on demand pay to the each Finance Party forthwith on demand any exchange costs and taxes payable in connection with any such conversion.

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

	
 

	
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25.2
	
Other indemnities

The Parent shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

	
 
	
(a)
	
the occurrence of any Default;

	
 
	
(b)
	
a change in the currency of a country or the operation of Clause 2.5 (Change of currency), Clause 20.14 (Acceleration) or Clause 32 (Pro Rata Sharing); or

	
 
	
(c)
	
a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment or (other than by reason of negligence or default by that Finance Party) a Loan not being made after the Obligors' Agent has delivered a Request.

	
25.3
	
Indemnity to the Facility Agent

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

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

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

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

	
26.
	
Evidence and Calculations

	
26.1
	
Accounts

Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate.

	
26.2
	
Certificates and determinations

Any certification or determination by a Finance Party of a rate or amount under the Finance Documents is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

	
26.3
	
Calculations

Interest and the fees payable under Clause 22 (Fees) accrue from day to day and are calculated on the basis of the actual number of days elapsed and a year of 360 days or, where market practice otherwise dictates, 365 days.

	
27.
	
Amendments and Waivers

	
27.1
	
Procedure

	
(a)
	
Subject to Clause 27.2 (Exceptions), any term of the Finance Documents may be amended or waived with the agreement of the Obligors' Agent and the Majority Lenders.  The Facility Agent may effect, on behalf of any Finance Party, an amendment or waiver permitted under this Clause.

	
 

	
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(b)
	
The Facility Agent shall promptly notify the other Parties of any amendment or waiver effected under paragraph (a) above, and any such amendment or waiver shall be binding on all the Parties.

	
27.2
	
Exceptions

	
(a)
	
An amendment or waiver which relates to:

	
 
	
(i)
	
the definitions of Majority Lenders, Sanctions Authority, Sanctions Laws, Sanctions List and Sanctions Restricted Party in Clause 1.1 (Definitions);

	
 
	
(ii)
	
an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents (including the Margin and any fee payable under Clause 22 (Fees));

	
 
	
(iii)
	
an increase in or extension of any Commitment, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably under the Facility;

	
 
	
(iv)
	
a change in the guarantee of the Parent or Autoliv ASP, Inc.;

	
 
	
(v)
	
a term of a Finance Document which expressly requires the consent of all Lenders; or

	
 
	
(vi)
	
(A)                   Clause 2.3 (Finance Parties’ rights and obligations);

	
 
	
(B)
	
paragraphs (b) to (k) of Clause 8.5 (Mandatory Prepayment);

	
 
	
(C)
	
paragraphs (e) and (f) of Clause 19.3 (Information - miscellaneous);

	
 
	
(D)
	
Clause 18.26 (Sanctions);

	
 
	
(E)
	
Clause 19.2519.24 (Sanctions);

	
 
	
(F)
	
Clause 28.2 (Transfers by Lenders);

	
 
	
(G)
	
Clause 32 (Pro Rata Sharing);

	
 
	
(H)
	
Clause 37 (Jurisdiction);

	
 
	
(I)
	
Clause 38 (Governing Law); or

	
 
	
(J)
	
this Clause 27 (Amendments and Waivers),

must 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 Facility Agent or a Co-ordinator or a Reference Bank (each in their capacity as such) may not be effected without the consent of the Facility Agent, Co-ordinator or that Reference Bank, as the case may be.

	
(c)
	
If any Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any of the terms of any Finance Document or other vote of Lenders under the terms of this Agreement within 15 Business Days (unless the Parent and the Facility Agent agree to a longer time period in relation to any request) of that request being made, its Commitment shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage (including unanimity) of Total Commitments has been obtained to approve that request.

	
 

	
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27.3
	
Disenfranchisement of Defaulting Lenders

	
(a)
	
For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including unanimity) of the Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender's Commitments will be reduced by the amount of its undrawn Commitments.

	
(b)
	
For the purposes of this Clause 27.3, the Facility Agent may assume that the following Lenders are Defaulting Lenders:

	
 
	
(i)
	
any Lender which has notified the Facility Agent that it has become a Defaulting Lender;

	
 
	
(ii)
	
any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of "Defaulting Lender" has occurred,

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Facility Agent) or the Facility Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

	
27.4
	
Excluded Commitments

If any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within five Business Days (unless the Parent and the Facility Agent agree to a longer time period in relation to any request) of that request being made:

	
 
	
(a)
	
its Commitment(s) shall not be included for the purpose of calculating the Total Commitments under the Facility when ascertaining whether any relevant percentage (including unanimity) of Total Commitments has been obtained to approve that request; and

	
 
	
(b)
	
its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request.

	
27.5
	
Replacement of a Defaulting Lender

	
(a)
	
The Parent may, at any time a Lender has become and continues to be a Defaulting Lender, by giving not less than ten Business Days' prior written notice to the Facility Agent and such Lender:

	
 
	
(i)
	
replace such Lender by requiring such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 28 (Changes to the Parties) all (and not part only) of its rights and obligations under this Agreement; or

	
 
	
(ii)
	
require such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause ‎‎28 (Changes to the Parties) all (and not part only) of the undrawn Commitment of the Lender,

to a Lender or other bank or financial institution (a Replacement Lender) selected by the Parent, and which (unless the Facility Agent is an Impaired Agent) is acceptable to the Facility Agent (acting reasonably) and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Lender (including the assumption of the transferring Lender's participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender's participation in the outstanding utilisations and all accrued interest, broken funding costs (to indemnify that Lender for broken funding) and other amounts payable in relation thereto under the Finance Documents.

	
 

	
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(b)
	
Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions:

	
 
	
(i)
	
the Parent shall have no right to replace the Facility Agent;

	
 
	
(ii)
	
neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Parent to find a Replacement Lender;

	
 
	
(iii)
	
the transfer must take place no later than ten Business Days after the notice referred to in paragraph (a) above; and

	
 
	
(iv)
	
in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents.

	
27.6
	
Waivers and Remedies Cumulative

The rights of each Finance Party under the Finance Documents:

	
 
	
(a)
	
may be exercised as often as necessary;

	
 
	
(b)
	
are cumulative and not exclusive of its rights under the general law; and

	
 
	
(c)
	
may be waived only in writing and specifically.

Delay in exercising or non-exercise of any such right is not a waiver of that right.

	
28.
	
Changes to the Parties

	
28.1
	
Transfers by Obligors

No Obligor may assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under the Finance Documents.

	
28.2
	
Transfers by Lenders

	
(a)
	
A Lender (the Existing Lender) may, subject to paragraph (b) below, at any time assign, transfer or novate any of its Commitments and/or its rights and/or obligations under this Agreement to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the New Lender).

	
(b)
	
(i)                     A transfer of part of a Commitment must be in a minimum amount of at least US$10,000,000 or its remaining Commitment, if less, unless the New Lender is another Lender or an Affiliate of a Lender or unless an Event of Default has occurred which is continuing.

	
 
	
(ii)
	
The prior consent of the Parent is required for any such assignment, transfer or novation, unless the New Lender is another Lender or an Affiliate of a Lender or unless an Event of Default has occurred which is continuing.  However, the prior consent of the Parent must not be unreasonably withheld or delayed and will be deemed to have been given if, within ten Business Days of receipt by the Parent of an application for consent, it has not been expressly refused.

	
 

	
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(c)
	
The Facility Agent is not obliged to execute a Novation Certificate until it has completed all know your customer requirements to its satisfaction.  The Facility Agent must promptly notify the Existing Lender and the New Lender if there are any such requirements.

	
(d)
	
A transfer of obligations will be effective only if either:

	
 
	
(i)
	
the obligations are novated in accordance with Clause 28.3 (Procedure for novations); or

	
 
	
(ii)
	
the New Lender confirms to the Facility Agent and the Obligors' Agent that it undertakes to be bound by the terms of this Agreement as a Lender in form and substance satisfactory to the Facility Agent.  On the transfer becoming effective in this manner the Existing Lender shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Lender.

	
(e)
	
Nothing in this Agreement restricts the ability of a Lender to subcontract an obligation if that Lender remains liable under this Agreement for that obligation.

	
(f)
	
On each occasion an Existing Lender assigns, transfers or novates any of its Commitments, or any of its rights and/or obligations under this Agreement the New Lender shall, on the date the assignment, transfer and/or novation takes effect, pay to the Facility Agent for its own account a fee of US$2,500.

	
(g)
	
An Existing Lender is not responsible to a New Lender for:

	
 
	
(i)
	
the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document;

	
 
	
(ii)
	
the collectability of amounts payable under any Finance Document; or

	
 
	
(iii)
	
the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document.

	
(h)
	
Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

	
 
	
(i)
	
has made its own independent investigation and assessment of the financial condition and affairs of the Obligors and their 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 the Obligors and their related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force.

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

	
 
	
(i)
	
accept a re‐transfer from a New Lender of any of the Commitments and/or rights and/or obligations assigned, transferred or novated under this Clause 28; or

	
 
	
(ii)
	
support any losses incurred by the New Lender by reason of the non‐performance by the Obligors of their obligations under the Finance Documents or otherwise.

	
(j)
	
Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil.

	
 

	
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28.3
	
Procedure for novations

	
(a)
	
A novation is effected if:

	
 
	
(i)
	
the Existing Lender and the New Lender deliver to the Facility Agent a duly completed certificate, substantially in the form of Schedule 4 (a Novation Certificate); and

	
 
	
(ii)
	
the Facility Agent executes that Novation Certificate.

	
(b)
	
Each Party (other than the Existing Lender and the New Lender) irrevocably authorises the Facility Agent to execute any duly completed Novation Certificate on its behalf.

	
(c)
	
To the extent that they are expressed to be the subject of the novation in the Novation Certificate:

	
 
	
(i)
	
the Existing Lender and the other Parties (in this paragraph (c), the Existing Parties) will be released from their obligations to each other;

	
 
	
(ii)
	
the New Lender and the Existing Parties will assume obligations towards each other which differ from the obligations discharged pursuant to paragraph (i) above only insofar as they are owed to or assumed by the New Lender instead of the Existing Lender;

	
 
	
(iii)
	
the rights of the Existing Lender against the Existing Parties and vice versa will be cancelled; and

	
 
	
(iv)
	
the New Lender and the Existing Parties will acquire rights against each other which differ from the rights cancelled pursuant to paragraph (iii) above only insofar as they are exercisable by or against the New Lender instead of the Existing Lender,

all on the date of execution of the Novation Certificate by the Facility Agent or, if later, the date specified in the Novation Certificate (the Transfer Date).

	
28.4
	
The Register

The Facility Agent, acting solely for this purpose as an agent of the Obligors, shall maintain at one of its offices a copy of each Novation Certificate delivered to it and a register (the Register) for the recordation of the names and addresses of each Lender and the Commitments of and obligations owing to each Lender. Without limitation of any other provision of this Clause 28 (Changes to the Parties), no transfer of an interest in a Loan or Commitment hereunder shall be effective unless and until recorded in the Register.  The entries in the Register shall be conclusive absent manifest error and each Obligor, the Facility Agent and each Lender shall treat each person whose name is recorded in the Register as a Lender notwithstanding any notice to the contrary.

	
28.5
	
Security over Lenders' rights

In addition to the other rights provided to Lenders under this Clause ‎28, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender by way of any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank, except that no such charge, assignment or Security Interest shall:

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

	
 

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

	
28.6
	
Pro rata interest settlement

If the Facility Agent has notified the Lenders that it is able to distribute interest payments on a "pro rata basis" to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 28.3 (‎Procedure for novations) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

	
 
	
(a)
	
any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (Accrued Amounts) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six months, on the next of the dates which falls at six monthly intervals after the first day of that Interest Period); and

	
 
	
(b)
	
the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that:

	
 
	
(i)
	
when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

	
 
	
(ii)
	
the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 28.6, have been payable to it on that date, but after deduction of the Accrued Amounts.

	
28.7
	
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 Facility Agent may (in consultation with the Borrower and the Lenders) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

	
29.
	
Disclosure of Information

	
29.1
	
Disclosure (General)

Each Lender shall keep confidential any and all information made available to it by any Obligor pursuant to or in connection with the Finance Documents, other than information:

	
 
	
(a)
	
which at the relevant time is in the public domain; or

	
 
	
(b)
	
which, after such information has been made available to that Lender, becomes generally available to third parties by publication or otherwise through no breach of this Clause 29 by that Lender; or

	
 
	
(c)
	
which was lawfully in the possession of that Lender or its advisers prior to such disclosure (as evidenced by that Lender's written records or the written records of that Lender's advisers) and which was not acquired directly or indirectly from an Obligor; or

	
 
	
(d)
	
disclosed to any person:

	
 

	
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(i)
	
to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation; 

	
 
	
(ii)
	
to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes; or

	
 
	
(e)
	
the disclosure of which is made to an Affiliate of that Lender in circumstances where it is that Lender's usual practice to make such disclosure or where such disclosure is required as part of that Lender's management or reporting policies or where such disclosure is in the reasonable opinion of that Lender required to protect its position, or to assist in the recovery of amounts, hereunder; or

	
 
	
(f)
	
the disclosure of which is made to any person with whom it is proposing to enter, or has entered, into any kind of transfer, participation or other agreement in relation to this Agreement; or

	
 
	
(g)
	
the disclosure of which is made by that Lender to its professional advisers; or

	
 
	
(h)
	
which is disclosed to another party to this Agreement in the specific circumstances whereby it is made available to that party,

provided that, if a Lender makes such information available to any person in accordance with paragraphs (d), (e), (f) or (g) above, it takes reasonable endeavours to ensure that such party keeps that information confidential to the same extent as set out above.

	
29.2
	
Disclosure to numbering service providers

	
(a)
	
Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

	
 
	
(i)
	
the names of the Obligors;

	
 
	
(ii)
	
the country of domicile of the Obligors;

	
 
	
(iii)
	
the place of incorporation of the Obligors;

	
 
	
(iv)
	
the date of this Agreement;

	
 
	
(v)
	
Clause 38 (Governing law);

	
 
	
(vi)
	
the names of the Facility Agent and the Co-ordinators;

	
 
	
(vii)
	
the date of each amendment and restatement of this Agreement;

	
 
	
(viii)
	
the amount of the Total Commitments;

	
 
	
(ix)
	
the currencies of the Facility;

	
 
	
(x)
	
the type of the Facility; 

	
 
	
(xi)
	
the ranking of the Facility;

	
 

	
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(xii)
	
the Termination Date for the Facility; 

	
 
	
(xiii)
	
changes to any of the information previously supplied pursuant to paragraphs (i) to (xii) above; and

	
 
	
(xiv)
	
such other information agreed between such Finance Party and the Parent,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services. 

	
(b)
	
The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

	
(c)
	
The Parent represents that none of the information set out in paragraphs (i) to (xiv) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

	
(d)
	
The Facility Agent shall notify the Parent and the other Finance Parties of:

	
 
	
(i)
	
the name of any numbering service provider appointed by the Facility Agent in respect of this Agreement, the Facility and/or one or more Obligors; and 

	
 
	
(ii)
	
the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider.

	
30.
	
Confidentiality of Funding Rates and Reference Bank Quotations

	
30.1
	
Confidentiality and disclosure

	
(a)
	
The Facility Agent and each Obligor agree to keep each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b), (c) and (d) below.

	
(b)
	
The Facility Agent may disclose:

	
 
	
(i)
	
any Funding Rate (but not any Reference Bank Quotation) to the Borrower pursuant to Clause 10.5 (Notification of rates of interest); and

	
 
	
(ii)
	
any Funding Rate or any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Facility Agent and the relevant Lender or Reference Bank, as the case may be.

	
(c)
	
The Facility Agent may disclose any Funding Rate or any Reference Bank Quotation, and each Obligor may disclose any Funding Rate, to:

	
 
	
(i)
	
any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate or Reference Bank Quotation is to be given pursuant to this paragraph (i) is informed in writing 

	
 

	
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of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;

	
 
	
(ii)
	
any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

	
 
	
(iii)
	
any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Obligor, as the  case may be, it is not practicable to do so in the circumstances; and

	
 
	
(iv)
	
any person with the consent of the relevant Lender or Reference Bank, as the case may be.

	
(d)
	
The Facility Agent's obligations in this Clause 30 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under  Clause 10.5 (Notification of rates of interest) provided that (other than pursuant to paragraph (b)(i) above) the Facility Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification.

	
30.2
	
Related obligations

	
(a)
	
The Facility Agent and each Obligor acknowledge that each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Facility Agent and each Obligor undertake not to use any Funding Rate or, in the case of the Facility Agent, any Reference Bank Quotation for any unlawful purpose.

	
(b)
	
The Facility Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Reference Bank, as the case may be:

	
 
	
(i)
	
of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 30.1 (Confidentiality and disclosure) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

	
 
	
(ii)
	
upon becoming aware that any information has been disclosed in breach of this Clause 30.

	
30.3
	
No Event of Default

No Event of Default will occur under Clause 20.3 (Breach of other obligations) by reason only of an Obligor's failure to comply with this Clause 30.

	
 

	
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31.
	
Set-Off

A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

	
32.
	
Pro Rata Sharing

	
32.1
	
Redistribution

If any amount owing by an Obligor under the Finance Documents to a Finance Party (the recovering Finance Party) is discharged by payment, set‐off or any other manner other than in accordance with Clause 13 (Payments) (a recovery), then:

	
 
	
(a)
	
the recovering Finance Party shall, within three Business Days, notify details of the recovery to the Facility Agent;

	
 
	
(b)
	
the Facility Agent shall determine whether the recovery is in excess of the amount which the recovering Finance Party would have received had the recovery been received by the Facility Agent and distributed in accordance with Clause 13 (Payments);

	
 
	
(c)
	
subject to Clause 32.3 (Exceptions), the recovering Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the redistribution) equal to the excess;

	
 
	
(d)
	
the Facility Agent shall treat the redistribution as if it were a payment by the relevant Obligor under Clause 13 (Payments) and shall pay the redistribution to the Finance Parties (other than the recovering Finance Party) in accordance with Clause 13.8 (Partial payments); and

	
 
	
(e)
	
after payment of the full redistribution, the recovering Finance Party will be subrogated to the portion of the claims paid under paragraph (d) above and the relevant Obligor will owe the recovering Finance Party a debt which is equal to the redistribution, immediately payable and of the type originally discharged.

	
32.2
	
Reversal of redistribution

If under Clause 32.1 (Redistribution):

	
 
	
(a)
	
a recovering Finance Party must subsequently return a recovery, or an amount measured by reference to a recovery, to an Obligor; and

	
 
	
(b)
	
the recovering Finance Party has paid a redistribution in relation to that recovery,

each Finance Party shall, within three Business Days of demand by the recovering Finance Party through the Facility Agent, reimburse the recovering Finance Party all or the appropriate portion of the redistribution paid to that Finance Party together with interest on the amount to be returned to the recovering Finance Party for a period whilst it held the re-distribution.  Thereupon the subrogation in paragraph (e) of Clause 32.1 (Redistribution) will operate in reverse to the extent of the reimbursement.

	
 

	
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32.3
	
Exceptions

	
(a)
	
A recovering Finance Party is not obliged to pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Obligor concerned in the amount of the redistribution pursuant to paragraph (e) of Clause 32.1 (Redistribution).

	
(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 proceedings, if the other Finance Party had an opportunity to participate in those legal proceedings but did not do so and did not take separate legal proceedings.

	
33.
	
Severability

If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

	
 
	
(a)
	
the validity or enforceability in that jurisdiction of any other provision of the Finance Documents; or

	
 
	
(b)
	
the validity or enforceability in other jurisdictions of that or any other provision of the Finance Documents.

	
34.
	
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.

	
35.
	
Notices

	
35.1
	
Giving of notices

All notices or other communications under or in connection with this Agreement shall be given in writing and, unless otherwise stated, may be made by letter or, in the case of a Request and information provided by the Parent or the Facility Agent in relation to Clauses 19.2 (Financial information) and 19.3 (Information - miscellaneous) only, by e-mail.  Any such notice will be deemed to be given as follows:

	
 
	
(a)
	
if by letter, when delivered personally or on actual receipt; and

	
 
	
(b)
	
if by e-mail, when actually received in readable form.

However, a notice given in accordance with the above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on the next working day in that place.

	
35.2
	
Addresses for notices

	
(a)
	
The address of each Party (other than the Obligors and the Facility Agent) for all notices under or in connection with this Agreement is:

	
 
	
(i)
	
those notified by that Party for this purpose to the Facility Agent on or before the date it becomes a Party; or

	
 
	
(ii)
	
any other notified by that Party for this purpose to the Facility Agent by not less than five Business Days' notice.

	
 

	
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(b)
	
The address of the Parent is:

Autoliv, Inc,

Box 70381

SE-107 24 Stockholm

Sweden

Attention:Treasurer

With a copy to:

Attention:VP for Legal Affairs, General Counsel and Secretary

or such other as the Parent may notify to the Facility Agent by not less than five Business Days' notice.

	
(c)
	
The address number of the other Guarantor is:

Autoliv ASP, Inc.

3350 Airport Road

Ogden

Utah 84405

Attention:        Director of Finance

With a copy to:

Attention:        VP for Legal Affairs, General Counsel and Secretary

or such other as the Borrower may notify to the Facility Agent by not less than five Business Days' notice.

	
(d)
	
The address of the Facility Agent is:

 

Facility Agent:

 

Skandinaviska Enskilda Banken AB (publ)

Loans Agency

One Carter Lane

London

EC4V 5AN

United Kingdom

 

Email:             agency@seb.co.uk

Attention:       Loans Agency

 

With a copy to:

 

Skandinaviska Enskilda Banken AB (publ)

 

Email:              sco@seb.se

Attention:        Structured Credit Operations

 

or such other as the Facility Agent may notify to the other Parties by not less than five Business Days' notice.

	
 

	
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(e)
	
Subject to Clause 35.4 (Communication when the Facility Agent is an Impaired Agent) all notices from or to an Obligor or the Obligors' Agent shall be sent through the Facility Agent.

	
(f)
	
Promptly upon changing its address, the Facility Agent shall notify the other Parties.

	
35.3
	
Electronic communication

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

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

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

	
(b)
	
The Parties agree that, unless and until notified to the contrary, any such electronic communication as specified in paragraph (a) above is to be an accepted form of communication.

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

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

	
(e)
	
Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 35.3.

	
35.4
	
Communication when the Facility Agent is an Impaired Agent

If the Facility Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Facility Agent, communicate with each other directly and (while the Facility Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Facility Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Facility Agent has been appointed.

	
36.
	
Language

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

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

	
 
	
(i)
	
in English; or

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

	
 

	
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37.
	
Jurisdiction

	
37.1
	
Submission

	
(a)
	
For the benefit of each Finance Party, each Obligor agrees that the courts of England have jurisdiction to settle any disputes in connection with any Finance Document (including a dispute relating to the existence, validity or termination of any Finance Document or any non-contractual obligation arising out of or in connection with any Finance Document) and accordingly submits to the jurisdiction of the English courts.

	
(b)
	
Without prejudice to paragraph (a) above and for the benefit of each Finance Party, each Obligor agrees that any New York State court or Federal court sitting in New York City has jurisdiction to settle any disputes in connection with any Finance Document and accordingly submits to the jurisdiction of those courts.

	
(c)
	
The English and New York courts are the most appropriate and convenient courts to settle any such dispute and each Obligor waives objection to those courts on the grounds of inconvenient forum or otherwise in relation to proceedings in connection with any Finance Document.  

	
37.2
	
Service of process

Without prejudice to any other mode of service, each Obligor:

	
 
	
(a)
	
irrevocably appoints:

	
 
	
(i)
	
Airbags International Limited, Viking Way, Congleton, Cheshire, CW12 1TT United Kingdom, as agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

	
 
	
(ii)
	
CT Corporation System, 111 Eighth Avenue, 13 Floor, New York, New York 10011, as its agent for service of process in relation to any proceedings before any courts located in the State of New York in connection with any Finance Document;

	
 
	
(b)
	
agrees to maintain agents for service of process in England and in the State of New York until all Commitments have terminated and the Loans and all other amounts payable under the Finance Documents have been finally, irrevocable and indefeasibly repaid in full;

	
 
	
(c)
	
agrees that failure by a process agent to notify the Obligor of the process will not invalidate the proceedings concerned;

	
 
	
(d)
	
consents to the service of process relating to any proceedings by prepaid posting of a copy of the process to its address for the time being applying under Clause 35.2 (Addresses for notices); and

	
 
	
(e)
	
agrees that if the appointment of any person mentioned in paragraph (a) above ceases to be effective, the Obligor shall immediately appoint a further person in England or in the State of New York, as appropriate, to accept service of process on its behalf in England or in the State of New York, as appropriate, and, if the Obligor does not appoint a process agent within 15 days, the Lender is entitled and authorised to appoint a process agent for the Obligor by notice to the Obligor.

	
 

	
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37.3
	
Forum convenience and enforcement abroad

Each Obligor:

	
 
	
(a)
	
waives objection to the English and New York State and Federal courts on grounds of inconvenient forum or otherwise as regards proceedings in connection with any Finance Document; and

	
 
	
(b)
	
agrees that a judgment or order of an English or New York State or Federal court in connection with any Finance Document is conclusive and binding on it and may be enforced against it in the courts of any other jurisdiction.

	
37.4
	
Non-exclusivity

Nothing in this Clause 37 limits the right of a Finance Party to bring proceedings against an Obligor in connection with any Finance Document:

	
 
	
(a)
	
in any other court of competent jurisdiction; or

	
 
	
(b)
	
concurrently in more than one jurisdiction.

	
38.
	
Governing Law

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

	
39.
	
Integration

The Finance Documents contain the complete agreement between the parties on the matters to which they relate and supersede all prior commitments, agreements and understandings, whether written or oral, on those matters.

	
40.
	
Waiver of immunity

Each Obligor irrevocably and unconditionally:

	
 
	
(a)
	
agrees not to claim any immunity from proceedings brought by a Finance Party against it in relation to a Finance Document and to ensure that no such claim is made on its behalf;

	
 
	
(b)
	
consents generally to the giving of any relief or the issue of any process in connection with those proceedings; and

	
 
	
(c)
	
waives all rights of immunity in respect of it or its assets.

	
41.
	
Waiver of Jury Trial

THE OBLIGORS AND THE FINANCE PARTIES WAIVE ANY RIGHTS THEY MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED ON OR ARISING FROM ANY FINANCE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED BY THE FINANCE DOCUMENTS.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

	
 

	
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42.
	
USA Patriot Act

Each Finance Party that is subject to the requirements of the USA Patriot Act hereby notifies each Obligor that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies the Obligors, which information includes the name and address of the Obligors and other information that will allow such Finance Party to identify the Obligors in accordance with the USA Patriot Act.  Each Obligor agrees that it will provide each Finance Party with such information as it may request in order for such Finance Party to satisfy the requirements of the USA Patriot Act.

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

	
 

	
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Schedule 1

Commitments

 

	
Lenders
	
Commitments

US$

	
Skandinaviska Enskilda Banken AB (publ)
	
400,000,000

	
JPMorgan Chase Bank, N.A., London Branch
	
400,000,000

	
Total Commitments
	
US$800,000,000

 

	
 

	
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Schedule 2

Conditions Precedent Documents

To be delivered before the signing date

	
1.
	
Each Obligor

	
(a)
	
A copy of a resolution of the board of directors of each Obligor:

	
 
	
(i)
	
approving the terms of, and the transactions contemplated by, this Agreement and resolving that it execute this Agreement;

	
 
	
(ii)
	
authorizing a specified person or persons to execute this Agreement on its behalf; and

	
 
	
(iii)
	
authorizing a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with this Agreement.

	
2.
	
Other documents

	
2.1
	
Each Fee Letter referred to in Clause 22 (Fees), executed by the parties to it.

To be delivered within two weeks of the signing date

	
3.
	
Each Obligor

	
(a)
	
A copy of the memorandum and articles of association and certificate of incorporation of each Obligor.

	
(b)
	
A specimen of the signature of each person authorised by the resolution referred to in paragraph 1(a) above.

	
(c)
	
A certificate of a director of each Obligor confirming that the borrowing or guaranteeing, as appropriate, of the Commitment in full would not cause any borrowing or guaranteeing limit binding on it to be exceeded.

	
4.
	
Other documents

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

	
(b)
	
Evidence that the process agents referred to in Clause 37.2 (Service of process) have accepted their appointments under that Clause.

	
(c)
	
Confirmation from the Parent that it is not, to the best of its knowledge and belief after full and due enquiry, in breach of any other agreement to which it is a party (other than any immaterial breaches which cannot be expected to have an adverse effect on the interests of the Finance Parties under the Finance Documents). 

	
(d)
	
A copy of any other authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary in connection with the entry into and performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document.

	
 

	
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5.
	
Legal opinions

	
(a)
	
A legal opinion of Allen & Overy LLP, New York, legal advisers in the State of New York, USA to the Finance Parties.

	
(b)
	
A legal opinion of Taft Stettinius & Hollister LLP (or any other Indiana law firm approved by the Facility Agent), legal advisers in the State of Indiana, USA to the Parent.

	
(c)
	
A legal opinion of Allen & Overy LLP, London, legal advisers in England to the Finance Parties.

	
6.
	
Other documents and evidence

	
(a)
	
Such documentation and other evidence requested by a Finance Party which it is entitled to request in accordance with paragraph (a) of Clause 19.23 (Know your customer requirements).

	
(b)
	
A certificate of a director of the Parent identifying each Material Subsidiary of the Parent as at 30 April 2018.

	
(c)
	
The press release announcing the Parent’s board approval of the Spin-Off and the declaration of the distribution in kind of the shares in Veoneer by the Parent to its shareholders.

To be delivered before the first request

	
7.
	
Further documents and evidence

	
(a)
	
A certificate from the secretary of the Parent confirming that the record date in respect of the Spin-Off has occurred and that the Parent will complete the Spin-Off. 

	
(b)
	
Evidence that all fees and expenses then due and payable from the Obligors under this Agreement have been or will be paid in accordance with the relevant Fee Letter.

	
 

	
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Schedule 3

Form of Request

 

				
	
To:
	
 
	
[Skandinaviska Enskilda Banken AB (publ)] as Facility Agent]
	
 

	
 
	
 
	
 
	
 

	
From:
	
 
	
[OBLIGORS' AGENT]
	
Date:[●]

 

 

Autoliv Inc. US$800,000,000 Credit Agreement

dated [●] 2018 (the Agreement)

	
1.
	
We wish to utilise the Facility as follows:

	
 
	
(a)
	
Drawdown Date:     [          ]

	
 
	
(b)
	
Amount:       [          ]

	
 
	
(c)
	
Currency:       [          ]

	
 
	
(d)
	
Interest Period:       [          ]

	
 
	
(e)
	
Payment instructions:       [          ]

	
2.
	
We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Request.

 

By:

 

[OBLIGORS' AGENT]

Authorised Signatory

	
 

	
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Schedule 4

Form of Novation Certificate

 

						
	
To:
	
 
	
[Skandinaviska Enskilda Banken AB (publ)] as Facility Agent
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

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

 

Autoliv Inc. US$800,000,000 Credit Agreement

dated [●] 2018 (the Agreement)

We refer to Clause 28.3 (Procedure for novations).

	
1.
	
We [                                                     ] (the Existing Lender) and [          ] (the New Lender) agree to the Existing Lender and the New Lender novating the Existing Lender's Commitment (or part) and/or rights and obligations referred to in the Schedule in accordance with Clause 28.3 (Procedure for novations).

	
2.
	
The proposed Transfer Date is [date of novation].

	
3.
	
The Facility Office and address for notices of the New Lender for the purposes of Clause 35.2 (Addresses for notices) are set out in the Schedule.

	
4.
	
This Novation Certificate and any non-contractual obligations arising out of it are governed by English law.

	
5.
	
This Novation Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Novation Certificate.

	
6.
	
This Novation Certificate has been entered into on the date stated at the beginning of this Novation Certificate.

THE SCHEDULE

Commitments/rights and obligations to be novated

[Insert relevant details]

		
	
[Existing Lender]
	
[New Lender]

	
By:
	
By:

	
Date:
	
Date:

	
[New Lender]
	
 

	
[Facility Office
	
Address for notices]

	
[AGENT]
	
 

	
By:
	
 

	
Date:
	
 

	
 

	
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Schedule 5

Form of Compliance Certificate

 

						
	
To:
	
 
	
[Skandinaviska Enskilda Banken AB (publ)] as Facility Agent
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
From:
	
 
	
AUTOLIV INC.
	
Date:
	
[                 ]
	
 

 

Autoliv Inc. US$800,000,000 Credit Agreement

dated [●] 2018 (the Agreement)

	
1.
	
This is the Compliance Certificate referred to in Clause 19.5 (Compliance certificates) of the Agreement.

	
2.
	
We confirm that as at [relevant balance sheet date] Subsidiary Borrowings were [          ] (Covenant level requirement not more than US$600,000,000).

	
3.
	
We confirm the credit rating as at the date of this Compliance Certificate of the long term unsecured and unsubordinated debt of Autliv Inc. given by: 

	
(a)
	
Moody’s was [ ]; and

	
(b)
	
Standard & Poor’s was [ ]. 

	
4.
	
We confirm that no Default is outstanding as at the date of this Compliance Certificate.*

By:

 

AUTOLIV INC.

	
	 

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

	
 

	
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Schedule 6

Form of Increase Confirmation

 

			
	
To:
	
 
	
[Skandinaviska Enskilda Banken AB (publ)] as Facility Agent and Autoliv, Inc.  as the Parent

	
 
	
 
	
 

	
From:
	
 
	
[the Increase Lender] (the Increase Lender)

	
 
	
 
	
 

	
Dated:
	
 
	
 

Autoliv Inc. US$800,000,000 Credit Agreement

dated [●] 2018 (the Agreement)

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

	
2.
	
We refer to Clause 2.6 (Increase) of the Agreement.

	
3.
	
The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the Relevant Commitment) as if it was an Original Lender under the Agreement.

	
4.
	
The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the Increase Date) is [      ].

	
5.
	
On the Increase Date, the Increase Lender becomes party to the relevant Finance Documents as a Lender.

	
6.
	
The Facility Office and address and attention details for notices to the Increase Lender for the purposes of Clause ‎35.2 (Addresses for notices) are set out in the Schedule.

	
7.
	
The Increase Lender expressly acknowledges the limitations on the Lenders' obligations referred to in paragraph (f) of Clause 2.6 (Increase).

	
8.
	
The Increase Lender confirms, for the benefit of the Facility Agent and without liability to any Obligor, that it is not a Defaulting Lender.  

	
9.
	
This Increase Confirmation and any non-contractual obligations arising out of or in connection with it are governed by English law.

	
10.
	
This Increase Confirmation may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Increase Confirmation.

	
11.
	
This Increase Confirmation has been entered into on the date stated at the beginning of this Increase Confirmation.

	
 

	
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THE SCHEDULE

Relevant Commitment/rights and obligations to be assumed by the Increase Lender

[insert relevant details]

[Facility office address and attention details for notices and account details for payments]

[Increase Lender]

By:

This Increase Confirmation is accepted as an Increase Confirmation for the purposes of the Agreement by the Facility Agent, and the Increase Date is confirmed as [●].

Facility Agent

By:

	
 

	
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Schedule 7

Form of Extension Request

 

			
	
To:
	
 
	
Skandinaviska Enskilda Banken AB (publ) as Facility Agent

	
 
	
 
	
 

	
From:
	
 
	
The Parent

Autoliv Inc. US$800,000,000 Credit Agreement

dated [●] 2018 (the Agreement)

	
1.
	
We wish to extend the Termination Date of the Agreement by six months (the Extension).

	
2.
	
We confirm that, as at the date of this Extension Request:

	
 
	
(a)
	
no default is outstanding or might result from the Extension; and

	
 
	
(b)
	
the Repeating Representations are correct in all material respects.

	
3.
	
This Extension Request is irrevocable.

 

 

			
	
By:
	
 
	
.........................................................

The Parent as Obligors’ Agent

[Authorised Signatory]

 

 

	
 

	
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Signatories

Parent

AUTOLIV, INC.

 

	
By:
	
/s/
	
Mats Backman

	
 
	
 
	
Mats Backman

Guarantors

AUTOLIV, INC.

 

	
By:
	
/s/
	
Mats Backman

	
 
	
 
	
Mats Backman

AUTOLIV ASP, INC.

 

	
By:
	
/s/
	
Anthony Nellis

	
 
	
 
	
Anthony Nellis

Borrower

AUTOLIV, INC.

 

	
By:
	
/s/
	
Mats Backman

	
 
	
 
	
Mats Backman

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

Co-ordinators

J.P. MORGAN SECURITIES PLC

 

	
By:
	
 /s/ 
	
Liv Loge

	
Liv Loge, Managing Director

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 

	
By:
	
 /s/ 
	
Penny Neville-Park
	
 
	
/s/ 
	
Alison Butt

	
 
	
 
	
Penny Neville-Park
	
 
	
 
	
Alison Butt

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

Mandated Lead Arrangers 

J.P. MORGAN SECURITIES PLC

 

	
By:
	
 /s/ 
	
Liv Loge

	
 
	
 
	
Liv Loge, Managing Director

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 

	
By:
	
 /s/ 
	
Penny Neville-Park
	
 
	
/s/ 
	
Alison Butt

	
 
	
 
	
Penny Neville-Park
	
 
	
 
	
Alison Butt

 

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

Original Lenders

JPMORGAN CHASE BANK, N.A., LONDON BRANCH

 

	
By:
	
/s/
	
Philip Garner

	
 
	
 
	
Philip Garner

	
 
	
 
	
Vice President

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 

	
By:
	
 /s/ 
	
Penny Neville-Park
	
 
	
/s/ 
	
Alison Butt

	
 
	
 
	
Penny Neville-Park
	
 
	
 
	
Alison Butt

 

 

	
Signature pages to facilities agreement

	
 
	
 
	
 

 

	
 

 

Facility Agent

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 

	
By:
	
 /s/ 
	
Penny Neville-Park
	
 
	
/s/ 
	
Alison Butt

	
 
	
 
	
Penny Neville-Park
	
 
	
 
	
Alison Butt

 

	
Signature pages to facilities agreement

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