Document:

Exhibit 10.4

 

 

FACILITY
AGREEMENT

 

FOR

 

MURRAY
INTERNATIONAL METALS LIMITED

arranged
by

 

THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

as
Mandated Lead Arranger

 

with

 

THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

acting
as Agent

 

THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

acting
as Issuing Bank

 

and

 

THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

acting
as Security Trustee

 

 

One
London Wall, London EC2Y 5AB  DX 123
London/Chancery Lane Tel 0207 002 8573 Fax 0207 002 8501 

www.mms.co.uk

 

Ref:
TMGA/SMK/BAN/1/469/

 

 

TABLE
OF CONTENTS

 

	
  Clause

  	
   

  	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  THE FACILITIES

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  PURPOSE

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  CONDITIONS OF UTILISATION

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  UTILISATION - LOANS

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  UTILISATION - LETTERS OF
  CREDIT

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  LETTERS OF CREDIT

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  OPTIONAL CURRENCIES

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  ANCILLARY FACILITIES

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  REPAYMENT

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  ILLEGALITY, VOLUNTARY
  PREPAYMENT AND CANCELLATION

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  MANDATORY PREPAYMENT

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  RESTRICTIONS

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  INTEREST

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  INTEREST PERIODS

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  CHANGES TO THE CALCULATION OF
  INTEREST

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  FEES

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  TAX GROSS UP AND INDEMNITIES

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  INCREASED COSTS

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  OTHER INDEMNITIES

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  MITIGATION BY THE LENDERS

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  COSTS AND EXPENSES

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  GUARANTEE AND INDEMNITY

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  REPRESENTATIONS

  	
   

  	
  87

  

 

 

	
  25

  	
   

  	
  INFORMATION UNDERTAKINGS

  	
   

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  FINANCIAL COVENANTS

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  GENERAL UNDERTAKINGS

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  124

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  CHANGES TO THE LENDERS

  	
   

  	
  131

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  CHANGES TO THE OBLIGORS

  	
   

  	
  135

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  ROLE OF THE AGENT, THE
  SECURITY TRUSTEE, THE ARRANGER, THE ISSUING BANK AND OTHERS

  	
   

  	
  141

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  CONDUCT OF BUSINESS BY THE FINANCE
  PARTIES

  	
   

  	
  150

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  SHARING AMONG THE FINANCE
  PARTIES

  	
   

  	
  150

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  PAYMENT MECHANICS

  	
   

  	
  153

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  SET-OFF

  	
   

  	
  156

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  NOTICES

  	
   

  	
  156

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  CALCULATIONS AND CERTIFICATES

  	
   

  	
  160

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  PARTIAL INVALIDITY

  	
   

  	
  160

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  REMEDIES AND WAIVERS

  	
   

  	
  160

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  AMENDMENTS AND WAIVERS

  	
   

  	
  161

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  COUNTERPARTS

  	
   

  	
  162

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  GOVERNING LAW

  	
   

  	
  163

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  ENFORCEMENT

  	
   

  	
  163

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1 - THE ORIGINAL
  PARTIES

  	
   

  	
  165

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PART I - THE ORIGINAL
  OBLIGORS

  	
   

  	
  165

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PART II - THE ORIGINAL
  LENDERS

  	
   

  	
  166

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 2 - CONDITIONS
  PRECEDENT

  	
   

  	
  167

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PART I - CONDITIONS
  PRECEDENT TO INITIAL UTILISATION

  	
   

  	
  167

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PART II - CONDITIONS
  PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL OBLIGOR

  	
   

  	
  173

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 3 - REQUESTS

  	
   

  	
  176

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PART IA - UTILISATION
  REQUEST

  	
   

  	
  176

  

 

ii

 

	
   

  	
   

  	
  PART IB - UTILISATION
  REQUEST

  	
   

  	
  178

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 4 - MANDATORY
  COST FORMULA

  	
   

  	
  180

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5 - FORM OF
  TRANSFER CERTIFICATE

  	
   

  	
  184

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 6 - FORM OF
  ACCESSION LETTER

  	
   

  	
  187

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 7 - FORM OF
  RESIGNATION LETTER

  	
   

  	
  188

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 8 - FORM OF
  COMPLIANCE CERTIFICATE

  	
   

  	
  189

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 9 - TIMETABLES

  	
   

  	
  190

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 10 - FORM OF
  LETTER OF CREDIT

  	
   

  	
  192

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 11 - FORM OF
  DEMAND

  	
   

  	
  195

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 12 - FORM OF
  CONFIDENTIALITY UNDERTAKING

  	
   

  	
  196

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 13 - EXISTING
  INDEBTEDNESS

  	
   

  	
  200

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 14 - GROUP
  STRUCTURE CHART

  	
   

  	
  201

  

 

iii

 

THIS AGREEMENT is dated 16 December 2005 and made between:

 

(1)                            PIPE ACQUISITION LIMITED (registered number 05501083) (the “Company”);

 

(2)                            THE COMPANIES listed
in Part I of Schedule 1 (The
Original Parties) as original borrowers (the “Original Borrowers”);

 

(3)                            THE COMPANIES listed
in Part I of Schedule 1 (The
Original Parties) as original guarantors (together with the Company,
the “Original Guarantors”);

 

(4)                            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as mandated lead arranger (the “Arranger”);

 

(5)                            THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Parties) as lenders (the “Original Lenders”);

 

(6)                            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as agent of the other Finance Parties (the “Agent”);

 

(7)                            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as Security Trustee for the Secured Parties (the “Security Trustee”); and

 

(8)                            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as Issuing Bank (the “Issuing Bank”).

 

IT IS AGREED as follows:

 

SECTION 1

 

INTERPRETATION

 

1.                                                 DEFINITIONS AND INTERPRETATION

 

1.1                                           Definitions

 

In this Agreement:

 

	
  “Acceptable
  Bank”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  a bank or financial institution which has a rating for its
  long-term unsecured and non credit-enhanced debt obligations of A-I or higher
  by Standard & Poor’s Rating Services or Fitch Ratings Ltd or P-I or
  higher by Moody’s Investor Services Limited or a comparable rating from an
  internationally recognised credit rating agency; or

  

 

 

	
   

  	
   

  	
  (b)                                 any other bank or financial institution approved by the Agent
  acting reasonably.

  
	
   

  	
   

  	
   

  
	
  “Accession Letter”

  	
   

  	
  means a document substantially in the form set
  out in Schedule 6 (Form of
  Accession Letter).

  
	
   

  	
   

  	
   

  
	
  “Accountants’ Report”

  	
   

  	
  means the report (including any documents
  annexed thereto) by PriceWaterhouseCoopers dated 29 November 2005
  relating to the Target and its Subsidiaries and the Target Assets and
  addressed to, and/or capable of being relied upon by, amongst others, the
  Arranger and the other Secured Parties.

  
	
  “Accounting Principles”

  	
   

  	
  means generally accepted accounting
  principles in the United Kingdom.

  
	
   

  	
   

  	
   

  
	
  “Accounting Reference Date”

  	
   

  	
  means the last day of a Financial Year.

  
	
   

  	
   

  	
   

  
	
  “Acquisition”

  	
   

  	
  means the acquisition by the Company of the
  Target Shares on the terms of the Acquisition Documents.

  
	
   

  	
   

  	
   

  
	
  “Acquisition Agreement”

  	
   

  	
  means the agreement dated 30 November 2005
  relating to the sale and purchase of the Target Shares and made between the
  Company, Murray International Holdings Limited, Edgen Carbon Products Group,
  LLC and the Vendors.

  
	
   

  	
   

  	
   

  
	
  “Acquisition Costs”

  	
   

  	
  means all fees, costs and expenses, stamp,
  registration and other Taxes incurred by the Company or any of its
  Subsidiaries in connection with the Acquisition or the Transaction Documents.

  
	
   

  	
   

  	
   

  
	
  “Acquisition Documents”

  	
   

  	
  means the Acquisition Agreement, the
  Disclosure Letter, and any other document designated as an “Acquisition Document” by the Agent and
  the Company.

  
	
   

  	
   

  	
   

  
	
  “Additional Borrower”

  	
   

  	
  means a company which becomes a Borrower in
  accordance with Clause 30 (Changes to the
  Obligors).

  
	
   

  	
   

  	
   

  
	
  “Additional Cost Rate”

  	
   

  	
  has the meaning given to it in Schedule 4
  (Mandatory Cost formula).

  

 

2

 

	
  “Additional Guarantor”

  	
   

  	
  means a company which becomes a Guarantor
  in accordance with Clause 30 (Changes to
  the Obligors).

  
	
   

  	
   

  	
   

  
	
  “Additional Obligor”

  	
   

  	
  means an Additional Borrower or an
  Additional Guarantor.

  
	
   

  	
   

  	
   

  
	
  “Affiliate”

  	
   

  	
  means, in relation to any person, a
  Subsidiary of that person or a Holding Company of that person or any other
  Subsidiary of that Holding Company.

  
	
   

  	
   

  	
   

  
	
  “Agent’s Spot Rate of Exchange”

  	
   

  	
  means the Agent’s spot rate of exchange for
  the purchase of the relevant currency with the Base Currency in the London
  foreign exchange market at or about 11:00 a.m. on a particular day.

  
	
   

  	
   

  	
   

  
	
  “Ancillary Commencement Date”

  	
   

  	
  means, in relation to an Ancillary Facility,
  the date on which that Ancillary Facility is first made available, which date
  shall be a Business Day within the Availability Period for the Revolving
  Facility.

  
	
   

  	
   

  	
   

  
	
  “Ancillary Commitment”

  	
   

  	
  means, in relation to an Ancillary Lender
  and an Ancillary Facility, the maximum Base Currency Amount which that
  Ancillary Lender has agreed (whether or not subject to satisfaction of
  conditions precedent) to make available from time to time under an Ancillary
  Facility and which has been authorised as such under Clause 9 (Ancillary Facilities), to the extent
  that amount is not cancelled or reduced under this Agreement or the Ancillary
  Documents relating to that Ancillary Facility.

  
	
   

  	
   

  	
   

  
	
  “Ancillary Document”

  	
   

  	
  means each document relating to or
  evidencing the terms of the Ancillary Facility.

  
	
   

  	
   

  	
   

  
	
  “Ancillary Facility”

  	
   

  	
  means the ancillary facility made available
  by an Ancillary Lender in accordance with Clause 9 (Ancillary Facilities).

  
	
   

  	
   

  	
   

  
	
  “Ancillary Lender”

  	
   

  	
  means each Lender (or Affiliate of a
  Lender) which makes available an Ancillary Facility in accordance with Clause
  9 (Ancillary Facilities).

  
	
   

  	
   

  	
   

  
	
  “Ancillary
  Outstandings”

  	
   

  	
  means,
  at any time, in relation to an Ancillary Lender and an Ancillary Facility the
  aggregate of the equivalents (as calculated by that Ancillary Lender using
  the Agent’s Spot Rate of Exchange) in

  

 

3

 

	
   

  	
   

  	
  the
  Base Currency of the following amounts outstanding under that Ancillary
  Facility then in force:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the principal amount under any overdraft facility and on-demand
  short term loan facility (net of any credit balances on any account of any
  Borrower of an Ancillary Facility with the Ancillary Lender making available
  that Ancillary Facility to the extent that such credit balance is freely
  available to be set off by that Ancillary Lender against liabilities owed to
  it by any Borrower under any Ancillary Facility);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 the face amount of each guarantee, bond and letter of credit under
  that Ancillary Facility; and 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                  the amount fairly representing the aggregate exposure (excluding
  interest and similar charges) of that Ancillary Lender under each other type
  of accommodation provided under that Ancillary Facility,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  in
  each case as determined by such Ancillary Lender in accordance with the
  relevant Ancillary Document, acting reasonably in accordance with its normal
  banking practice.

  
	
   

  	
   

  	
   

  
	
  “Approved Auditors”

  	
   

  	
  means one of PriceWaterhouseCoopers, Ernst &
  Young, KPMG or Deloitte & Touche or such other firm approved in
  advance by the Majority Lenders (such approval not to be unreasonably
  withheld or delayed).

  
	
   

  	
   

  	
   

  
	
  “Approved Bank”

  	
   

  	
  means an account maintained with a bank or
  financial institution which provides banking facilities to members of the
  Group outside of the United Kingdom and The Governor and Company of the Bank
  of Scotland does not maintain a branch in that location offering the relevant
  banking services and the maintaining of such accounts by the Group is not
  prejudicial to the interests of the Finance Parties under the Finance Documents
  and such accounts are subject (to the extent the Agent may require,
  acting reasonably) to valid Security under the Transaction Security
  Documents.

  

 

4

 

	
  “Approved
  Jurisdiction”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  Singapore;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 the United Kingdom;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                  Germany;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)                                 Indonesia;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)                                  South Korea;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)                                    South Africa;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g)                                 Thailand;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)                                 United Arab Emirates; and 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                                     any other jurisdiction approved by all the Lenders.

  
	
   

  	
   

  	
   

  
	
  “Authorisation”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Availability Period”

  	
   

  	
  means the period from and including the
  date of this Agreement to and including one Month prior to the Termination
  Date.

  
	
   

  	
   

  	
   

  
	
  “Available Ancillary Commitment”

  	
   

  	
  means in relation to an Ancillary Facility,
  an Ancillary Lender’s Ancillary Commitment less the Ancillary Outstandings in
  relation to that Ancillary Facility.

  
	
   

  	
   

  	
   

  
	
  “Available Commitment”

  	
   

  	
  means
  a Lender’s Commitment minus (subject to Clause 9.5 (Affiliates of Lenders as Ancillary Lenders) and
  as set out below):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the Base Currency Amount of its participation in any outstanding
  Utilisations and the Base Currency Amount of the aggregate of its Ancillary
  Commitments; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 in relation to any proposed Utilisation, the Base Currency Amount
  of its participation in any other Utilisations that are due to be made on or
  before the proposed Utilisation Date and in relation to any new Ancillary
  Facility that is due to be made available on or

  

 

5

 

	
   

  	
   

  	
  before the proposed Utilisation Date;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Other
  than:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                                     that Lender’s participation in any Utilisations that are due to be
  repaid or prepaid on or before the proposed Utilisation Date; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)                                  that Lender’s (or its Affiliate’s) Ancillary Commitments to the
  extent that they are due to be reduced or cancelled on or before the proposed
  Utilisation Date.

  
	
   

  	
   

  	
   

  
	
  “Available Facility”

  	
   

  	
  means the aggregate for the time being of
  each Lender’s Available Commitment in respect of the Facility.

  
	
   

  	
   

  	
   

  
	
  “Base Case Model”

  	
   

  	
  means the financial model including profit
  and loss, balance sheet and cashflow projections in agreed form relating
  to the Group.

  
	
   

  	
   

  	
   

  
	
  “Base Currency”

  	
   

  	
  means Sterling.

  
	
   

  	
   

  	
   

  
	
  “Base
  Currency Amount”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  in relation to a Utilisation, the amount specified in the
  Utilisation Request delivered by a Borrower for that Utilisation (or, if the
  amount requested is not denominated in the Base Currency, that amount
  converted into the Base Currency at the Agent’s Spot Rate of Exchange on the
  date which is three Business Days before the Utilisation Date or, if later,
  on the date the Agent receives the Utilisation Request in accordance with the
  terms of this Agreement) and, in the case of a Letter of Credit, as adjusted
  under Clause 6.7 (Revaluation of Letters
  of Credit) at six-monthly intervals; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 in relation to an Ancillary Commitment, the amount specified as
  such in the notice delivered to the Agent by the Company pursuant to
  Clause 9.2 (Availability)
  (or, if the amount specified is not denominated in the Base

  

 

6

 

	
   

  	
   

  	
  Currency,
  that amount converted into the Base Currency at the Agent’s Spot Rate of
  Exchange on the date which is three Business Days before the Ancillary
  Commencement Date for the Ancillary Facility or, if later, the date the Agent
  receives the notice of the Ancillary Commitment in accordance with the terms
  of this Agreement), as adjusted to reflect any repayment, prepayment,
  consolidation or division of a Utilisation, or (as the case may be)
  cancellation or reduction of the Ancillary Facility.

  
	
   

  	
   

  	
   

  
	
  “Borrower”

  	
   

  	
  means an Original Borrower or an Additional
  Borrower unless it has ceased to be a Borrower in accordance with Clause 30 (Changes to the Obligors).

  
	
   

  	
   

  	
   

  
	
  “Borrowings”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “Break
  Costs”

  	
   

  	
  means
  the amount (if any) by which:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  exceeds:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Budget”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  in relation to the period beginning on the Closing Date

  

 

7

 

	
   

  	
   

  	
  and ending
  31 January 2010, the Base Case Model in agreed form to be delivered
  by the Company to the Agent pursuant to Clause 4.1 (Initial conditions precedent); and 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 in relation to any other period, any budget delivered by the
  Company to the Agent in respect of that period pursuant to Clause 25.5 (Budget).

  
	
   

  	
   

  	
   

  
	
  “Business
  Day”

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 (in relation to any date for payment or purchase of euro) any
  TARGET Day.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Capital Expenditure”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “Cash Equivalent Investments”

  	
   

  	
  means at any time:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  certificates of deposit maturing within one year after the
  relevant date of calculation and issued by an Acceptable Bank;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                 any investment in marketable debt obligations issued or guaranteed
  by the government of the United States of America, the United Kingdom or by
  an instrumentality or agency of any of them having an equivalent credit rating,
  maturing within one year after the relevant date of calculation and not
  convertible or exchangeable to any other security;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                  commercial paper not convertible or exchangeable to any other
  security:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                                     for which a recognised trading market exists;

  

 

8

 

	
   

  	
   

  	
  (ii)                                  issued by an issuer incorporated in the United Kingdom or the
  United States of America; 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)                               which matures within one year after the relevant date of
  calculation; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)                              which has a credit rating of either A-1 or higher by Standard &
  Poor’s Rating Services or Fitch Ratings Ltd or P-1 or higher by Moody’s
  Investor Services Limited, or, if no rating is available in respect of the
  commercial paper, the issuer of which has, in respect of its long-term
  unsecured and non-credit enhanced debt obligations, an equivalent rating;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)                                 sterling bills of exchange eligible for rediscount at the Bank of
  England and accepted by an Acceptable Bank (or their dematerialised equivalent);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)                                  any investment accessible within 45 days in money market funds
  which have a credit rating of either A-1 or higher by Standard &
  Poor’s Rating Services or Fitch Rating Ltd or P-1 or higher by Moody’s
  Investor Services Limited and which invest substantially all their assets in
  securities of the types described in sub-paragraphs (a) to (d) above;
  or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)                                    any other debt security approved by the Majority Lenders such
  approval not to be unreasonably withheld or delayed,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  in each case, to which any member of the
  Group is beneficially entitled at that time and which is not issued or
  guaranteed by any member of the Group or subject to any Security Interest
  (other than one arising under the Transaction Security Documents).

  
	
   

  	
   

  	
   

  
	
  “Cashflow”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  

 

9

 

	
  “Change of Control”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            the Institutional Investors or any funds controlled by
  Edgen/Murray GP, LLC cease to control directly or indirectly the Parent
  and/or the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  the purposes of this definition:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “control” of the Parent and/or the Company
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                           the power (whether by way of ownership of shares or units (as
  applicable), proxy, contract, agency or otherwise) to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.                                   cast, or control the casting of, more than 25% of the maximum
  number of votes that might be cast at a general meeting of the Parent or the
  Company (as applicable); or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.                                     appoint or remove all, or the majority, of the directors or other
  equivalent officers of the Parent or the Company (as applicable); or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.                                     give directions with respect to the operating and financial
  policies of the Parent or the Company (as applicable) with which the
  directors or other equivalent officers of the Parent or the Company (as
  applicable) are obliged to comply; and/or 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)                        the holding beneficially of more than 50% of the issued share
  capital or units (as applicable) of the Parent and/or the Company (excluding
  any part of that issued share capital or units (as applicable) that
  carries no right to participate beyond a specified amount in a distribution
  of either profits or capital); and/or 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)                     a “Change of Control” as such term is defined in the Floating Rate
  Note Instrument.

  

 

10

 

	
  “Charged Property”

  	
   

  	
  means all of the assets of the Obligors
  which from time to time are, or are expressed to be, the subject of the
  Transaction Security.

  
	
   

  	
   

  	
   

  
	
  “Closing Date”

  	
   

  	
  means the date on which Completion occurs.

  
	
   

  	
   

  	
   

  
	
  “Company Intra-Group Loan Agreement”

  	
   

  	
  means the loan agreement in the agreed form between
  the Company and the Principal Borrower pursuant to which the Principal
  Borrower has or will make available a facility to the Company up to a maximum
  aggregate principal amount equal to £15,000,000.

  
	
   

  	
   

  	
   

  
	
  “Commitment”

  	
   

  	
  means a Revolving Facility Commitment.

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  means the completion of the Acquisition in
  accordance with clause 6 of the Acquisition Agreement.

  
	
   

  	
   

  	
   

  
	
  “Compliance Certificate”

  	
   

  	
  means a certificate substantially in the form set
  out in Schedule 8 (Form of
  Compliance Certificate).

  
	
   

  	
   

  	
   

  
	
  “Confidentiality Undertaking”

  	
   

  	
  means a confidentiality undertaking
  substantially in a recommended form of the LMA as set out in Schedule 12
  (LMA Form of Confidentiality Undertaking).

  
	
   

  	
   

  	
   

  
	
  “Constitutional Documents”

  	
   

  	
  means the memorandum and articles of
  association of the Company.

  
	
   

  	
   

  	
   

  
	
  “Default”

  	
   

  	
  means an Event of Default or any event or
  circumstance specified in Clause 28 (Events
  of Default) which would (with the expiry of a grace period, the
  giving of notice, the making of any determination under the Finance Documents
  or any combination of any of the foregoing) be an Event of Default.

  
	
   

  	
   

  	
   

  
	
  “Delegate”

  	
   

  	
  means any delegate, agent, attorney or
  co-trustee appointed by the Security Trustee.

  
	
   

  	
   

  	
   

  
	
  “Designated Gross Amount”

  	
   

  	
  has the meaning given to that term in
  Clause 9.2 (Availability).

  
	
   

  	
   

  	
   

  
	
  “Designated Net Amount”

  	
   

  	
  has the meaning given to that term in
  Clause 9.2 (Availability).

  
	
   

  	
   

  	
   

  
	
  “Disclosure Letter”

  	
   

  	
  has the meaning given to that term in the
  Acquisition Agreement.

  

 

11

 

	
  “Environmental Claim”

  	
   

  	
  means any claim, proceeding, formal notice
  or investigation by any person in respect of any Environmental Law.

  
	
   

  	
   

  	
   

  
	
  “Environmental
  Law”

  	
   

  	
  means
  any applicable mandatory law or regulation which relates to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            the pollution or protection of the environment;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           harm to or the protection of human health;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                            the conditions of the workplace; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)                                           any emission or substance capable of causing harm to any living
  organism or the environment.

  
	
   

  	
   

  	
   

  
	
  “Environmental Permits”

  	
   

  	
  means any permit and other Authorisation
  and the filing of any notification, report or assessment required under any
  Environmental Law for the operation of the business of any member of the
  Group conducted on or from the properties owned or used by any member of the
  Group.

  
	
   

  	
   

  	
   

  
	
  “Environmental Report”

  	
   

  	
  means the environmental reports prepared by
  Environ in respect of the properties at Camps Industrial Estate Edinburgh,
  Newbridge Industrial Estate Edinburgh and 49 Coniscliffe Road Darlington and
  dated 26 August 2005, 20 October 2005 and 25 August 2005,
  respectively relating to the Acquisition and addressed to, and/or capable of
  being relied upon by, amongst others, the Arranger and the other Finance
  Parties.

  
	
   

  	
   

  	
   

  
	
  “Event of Default”

  	
   

  	
  means any event or circumstance specified
  as such in Clause 28 (Events of Default).

  
	
   

  	
   

  	
   

  
	
  “Exchange Offer”

  	
   

  	
  means a registered exchange offer for the
  Floating Rate Notes which offers to exchange the Floating Rate Notes for
  notes the offer and sale of which has been registered with the US Securities
  and Exchange Commission and to provide indemnification for certain
  liabilities to the holders of the Floating Rate Notes.

  
	
   

  	
   

  	
   

  
	
  “Expiry Date”

  	
   

  	
  means, for a Letter of Credit, the last day
  of its Term.

  
	
   

  	
   

  	
   

  
	
  “Facility”

  	
   

  	
  means the Revolving Facility.

  

 

12

 

	
  “Facility Office”

  	
   

  	
  means the office or offices notified by a
  Lender or the Issuing Bank to the Agent in writing on or before the date it
  becomes a Lender or the Issuing Bank (or, following that date, by not less
  than five Business Days’ written notice) as the office or offices through
  which it will perform its obligations under this Agreement.

  
	
   

  	
   

  	
   

  
	
  “Fee
  Letter”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            any letter or letters dated on or about the date of this Agreement
  between the Arranger and the Principal Borrower (or the Agent and the
  Principal Borrower or the Security Trustee and the Principal Borrower)
  setting out any of the fees referred to in Clause 17 (Fees); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           any other agreement setting out fees referred to in Clause 17.4 (Fees payable in respect of Letters of Credit)
  or Clause 17.5 (Interest, commission and
  fees on Ancillary Facilities).

  
	
   

  	
   

  	
   

  
	
  “Finance Document”

  	
   

  	
  means this Agreement, any Accession Letter,
  any Ancillary Documents, the Company Intra-Group Loan Agreement, any
  Compliance Certificate, any Fee Letter, the Intercreditor Agreement, any
  Resignation Letter, any Transaction Security Document, any Utilisation
  Request and any other document designated as a “Finance Document” by the
  Agent and the Company.

  
	
   

  	
   

  	
   

  
	
  “Finance Party”

  	
   

  	
  means the Agent, the Arranger, the Security
  Trustee, a Lender, the Issuing Bank, or any Ancillary Lender.

  
	
   

  	
   

  	
   

  
	
  “Financial
  Indebtedness”

  	
   

  	
  means
  any indebtedness for or in respect of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            monies borrowed;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           any amount raised by acceptance under any acceptance credit
  facility or dematerialised equivalent;

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

13

 

	
   

  	
   

  	
  any similar instrument;

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)                                              any Treasury Transaction (and, when calculating the value of that
  Treasury Transaction, only the marked to market value shall be taken into
  account);

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)                                           any amount of any liability under an advance or deferred purchase
  agreement if one of the primary reasons behind entering into the agreement is
  to raise finance in the ordinary course of its business that are not overdue
  by 90 days or more or are being contested in good faith by appropriate
  proceedings;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                                               any amount raised under any other transaction (including any
  forward sale or purchase agreement) having the commercial effect of a
  borrowing; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
  “Financial Year”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “Floating Rate Notes”

  	
   

  	
  means the $130 million senior secured
  floating rate notes due 2010 of the Company offered and issued by the Issuer
  to enable the

  

 

14

 

	
   

  	
   

  	
  Company to finance, inter alia,
  the Acquisition.

  
	
   

  	
   

  	
   

  
	
  “Floating Rate Note Documents”‘

  	
   

  	
  means the Floating Rate Notes and the
  Floating Rate Note Instrument in the agreed form and any other documents
  entered into pursuant to any of them.

  
	
   

  	
   

  	
   

  
	
  “Floating Rate Note Instrument”

  	
   

  	
  means the instrument pursuant to which the
  Floating Rate Notes are, or are to be constituted including the Floating Rate
  Note Purchase Agreement.

  
	
   

  	
   

  	
   

  
	
  “Floating Rate Note Purchase Agreement”

  	
   

  	
  means the purchase agreement dated on or
  around the date of this Agreement entered into between, inter alia, the
  Company and the Issuer.

  
	
   

  	
   

  	
   

  
	
  “Flotation”

  	
   

  	
  means a successful application being made
  for the admission of any part of the ordinary share capital of any
  member of the Group (or Holding Company of any member of the Group) on a recognised
  stock exchange or the sale or issue by way of flotation or public offering.

  
	
   

  	
   

  	
   

  
	
  “Forward Contracts”

  	
   

  	
  means the forward foreign exchange
  contracts provided under Clause 9 (Ancillary Facilities).

  
	
   

  	
   

  	
   

  
	
  “Funds Flow Statement”

  	
   

  	
  means a funds flow statement in agreed
  form.

  
	
   

  	
   

  	
   

  
	
  “Group”

  	
   

  	
  means the Company and each of its
  Subsidiaries for the time being.

  
	
   

  	
   

  	
   

  
	
  “Group Structure Chart”

  	
   

  	
  means the group structure chart in the form set
  out in Schedule 4 (Group Structure Chart).

  
	
   

  	
   

  	
   

  
	
  “Guarantor”

  	
   

  	
  means an Original Guarantor or an
  Additional Guarantor, unless it has ceased to be a Guarantor in accordance
  with Clause 30 (Changes to the Obligors).

  
	
   

  	
   

  	
   

  
	
  “Holding Company”

  	
   

  	
  means, in relation to a company or
  corporation, any other company or corporation in respect of which it is a
  Subsidiary.

  
	
   

  	
   

  	
   

  
	
  “Individual Investors”

  	
   

  	
  means Murray Management, Edgen Management
  (as such terms are defined in the Partnership Agreement), Edgen/Murray GP,
  LLC and Murray Metals Group Limited.

  

 

15

 

	
  “Institutional Investors”

  	
   

  	
  means ING Furman Selz Investors III L.P,
  ING Barings Global Leveraged Equity Plan Ltd and ING Barings US Leveraged
  Equity Plan LLC.

  
	
   

  	
   

  	
   

  
	
  “Information Package”

  	
   

  	
  means the Reports and the Base Case Model.

  
	
   

  	
   

  	
   

  
	
  “Initial Singapore Obligor”

  	
   

  	
  means Murray International Metals PTE
  Limited (registered number 200201097M).

  
	
   

  	
   

  	
   

  
	
  “Intellectual
  Property”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            any patents, trade marks, service marks, designs, business names,
  copyrights, design rights, moral rights, inventions, confidential
  information, knowhow and other intellectual property rights and interests,
  whether registered or unregistered; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           the benefit of all applications and rights to use such assets of
  each, amongst others member of the Group.

  
	
   

  	
   

  	
   

  
	
  “Intercreditor Agreement”

  	
   

  	
  means the intercreditor agreement dated the
  same date as this Agreement and made between, amongst others, the Company,
  the other Obligors and The Governor and Company of the Bank of Scotland in
  its capacities as Agent, Security Trustee and Lender and The Bank of New York
  in its various capacities thereunder including as collateral agent and
  security trustee for the Subordinated Creditors.

  
	
   

  	
   

  	
   

  
	
  “Interest Period”

  	
   

  	
  means, in relation to a Loan, each period
  determined in accordance with Clause 15 (Interest
  Periods) and, in relation to an Unpaid Sum, each period determined
  in accordance with Clause 14.3 (Default
  interest).

  
	
   

  	
   

  	
   

  
	
  “Investors”

  	
   

  	
  means Individual Investors and the
  Institutional Investors and their or any subsequent successors or assigns or
  transferees.

  
	
   

  	
   

  	
   

  
	
  “Investment Documents”

  	
   

  	
  means the Partnership Agreement, the
  Constitutional Documents, and any other document defined as an “Investment
  Document” under the Partnership Agreement.

  

 

16

 

	
  “Issuer”

  	
   

  	
  means Pipe Acquisition Finance PLC a
  company incorporated in England and Wales (registered number 05644999).

  
	
   

  	
   

  	
   

  
	
  “Joint Venture”

  	
   

  	
  means any joint venture entity, whether a
  company, unincorporated firm, undertaking, association, joint venture or
  partnership or any other entity.

  
	
   

  	
   

  	
   

  
	
  “L/C Proportion”

  	
   

  	
  means in relation to a Lender in respect of
  any Letter of Credit, the proportion (expressed as a percentage) borne by
  that Lender’s Available Commitment to the relevant Available Facility immediately
  prior to the issue of that Letter of Credit, adjusted to reflect any
  assignment or transfer under this Agreement to or by that Lender.

  
	
   

  	
   

  	
   

  
	
  “Legal Due Diligence Reports”

  	
   

  	
  means the UAE Due Diligence Report, the
  Singapore Due Diligence Report, the Scottish Due Diligence Reports and the
  legal due diligence report dated 30 November 2005 prepared by Dechert
  LLP relating to the Acquisition.

  
	
   

  	
   

  	
   

  
	
  “Legal
  Reservations”

  	
   

  	
  means
  the reservations and qualifications contained in the legal opinions referred
  to in paragraph 5 of Part I (Conditions Precedent To
  Initial Utilisation) and paragraph 5 of Part II (Conditions Precedent Required To Be Delivered By An Additional
  Obligor) of Schedule 2 (Conditions Precedent) and:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            the principle that equitable remedies may be granted or
  refused at the discretion of a court and the limitation of enforcement by
  laws relating to insolvency, reorganisation and other laws generally
  affecting the rights of creditors;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           the time barring of claims under the Limitation Acts, the
  possibility that an undertaking to assume liability for or indemnify a person
  against non-payment of UK stamp duty may be void and defences of set-off
  or counterclaim; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                            similar principles, rights and defences under the laws of any
  Relevant Jurisdiction.

  

 

17

 

	
  “Lender”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            any Original Lender; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           any bank, financial institution, trust, fund or other entity which
  has become a Party in accordance with Clause 29 (Changes to the Lenders),

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Letter
  of Credit”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            a letter of credit, substantially in the form set out in Schedule 10
  (Form of Letter of Credit)
  or in any other form requested by a Borrower (or the Company on its
  behalf) and agreed by the Agent and the Issuing Bank; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                           any guarantee, performance bond, indemnity or other instrument in
  a form requested by a Borrower (or the Company on its behalf) and agreed
  by the Agent and the Issuing Bank such agreement not to be unreasonably
  withheld or delayed.

  
	
   

  	
   

  	
   

  
	
  “LIBOR”

  	
   

  	
  means, in relation to any Loan:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                            the applicable Screen Rate; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as of the
  Specified Time on the Quotation Day for the offering of deposits in the
  currency of that Loan and for a period comparable to the Interest Period for
  that Loan.

  

 

18

 

	
  “LMA”

  	
   

  	
  means the Loan Market Association.

  
	
   

  	
   

  	
   

  
	
  “Loan”

  	
   

  	
  means a Revolving Facility Loan.

  
	
   

  	
   

  	
   

  
	
  “Majority
  Lenders”

  	
   

  	
  means:

   

  (a)                                  (for the purposes of Clause 40.1.1 (Required consents) in the context of a waiver in relation
  to a proposed Utilisation of the Revolving Facility (other than a Utilisation
  on the Closing Date) of the condition in Clause 4.2 (Further conditions precedent)), a Lender
  or Lenders whose Available Commitments and Available Ancillary Commitments
  with respect to the Revolving Facility aggregate 66 2/3 per
  cent. or more of the Available Facility and aggregate Available Ancillary
  Commitments with respect to the Revolving Facility; and

   

  (b)                                 (in any other case), a Lender or Lenders whose Commitments
  aggregate 66 2/3 per cent. or more of the Total Commitments (or, if the Total
  Commitments have been reduced to zero, aggregated 66 2/3 per
  cent. or more of the Total Commitments immediately prior to that reduction).

  
	
   

  	
   

  	
   

  
	
  “Mandatory Cost”

  	
   

  	
  means the percentage rate per annum
  calculated by the Agent in accordance with Schedule 4 (Mandatory Cost formula).

  
	
   

  	
   

  	
   

  
	
  “Margin”

  	
   

  	
  means one point seven five percent (1.75%
  per annum) or such higher margin as may apply in accordance with Clause
  27.36 (Conditions subsequent) of this
  Agreement.

  
	
   

  	
   

  	
   

  
	
  “Material
  Adverse Effect”

  	
   

  	
  means
  any event or circumstance which has a material adverse effect on:

   

  (a)                                  the business, operations, property, financial condition of the
  Group taken as a whole; or

   

  (b)                                 the ability of an Obligor to perform its payment obligations
  under any of the Finance Documents and/or

  

 

19

 

	
   

  	
   

  	
  its
  obligations under Clause 26.1 (Financial
  condition) of this Agreement; or

   

  (c)                                  the validity or enforceability of, or the effectiveness or ranking
  of any Security granted or purporting to be granted pursuant to any of, the
  Finance Documents or the rights or remedies of any Finance Party under any of
  the Finance Documents.

  
	
   

  	
   

  	
   

  
	
  “Material
  Company”

  	
   

  	
  means,
  at any time:

   

  (a)                                  an Obligor; or

   

  (b)                                 a wholly-owned member of the Group that holds shares in an
  Obligor; or

   

  (c)                                  any company incorporated in the United Arab Emirates which becomes
  a member of the Group; or

   

  (d)                                 a Subsidiary of the Company or any Obligor which has EBITDA (as
  defined in Clause 26.1 (Financial
  definitions)) representing five per cent. or more of consolidated
  EBITDA, as defined in Clause 26.1 (Financial
  definitions) or has gross assets, net assets or turnover
  (excluding intra-group items) representing five per cent., or more of the
  gross assets, net assets or turnover of the Group, calculated on a consolidated
  basis.

   

  Compliance
  with the conditions set out in paragraph (d) shall be determined by
  reference to the most recent Compliance Certificate supplied by the Company
  and/or the latest audited financial statements of that Subsidiary
  (consolidated in the case of a Subsidiary which itself has Subsidiaries) and
  the latest audited consolidated financial statements of the Group. However,
  if a Subsidiary has been acquired since the date as at which the latest
  audited consolidated financial statements of the Group were prepared, the
  financial statements shall be deemed to be adjusted in order to take into
  account the acquisition of that Subsidiary (that

  

 

20

 

	
   

  	
   

  	
  adjustment
  being certified by the Group’s Auditors as representing an accurate
  reflection of the revised EBITDA (as defined in Clause 26.1 (Financial definitions), gross assets,
  net assets or turnover of the Group).

   

  A
  report by the Auditors of the Company that a Subsidiary is or is not a
  Material Company shall, in the absence of manifest error, be conclusive and
  binding on all Parties.

  
	
   

  	
   

  	
   

  
	
  “Material Provision”

  	
   

  	
  means
  the following provisions of the Agreement:

   

  (a)                                  Clause 25.1 to 25.5 (Information Undertakings);

   

  (b)                                 Clause 27.6 (Merger) to
  Clause 27.9 (Joint Ventures) (inclusive);

   

  (c)                                  Clause 27.14 (Negative Pledge);

   

  (d)                                 Clause 27.15 (Disposals);

   

  (e)                                  Clause 27.17 (Loans or Credit)
  to Clause 27.19 (Dividends and Share
  redemption);

   

  (f)                                    Clause 27.21 (Subordinated Debt);

   

  (g)                                 Clause 27.22 (Financial Indebtedness);
  and

   

  (h)                                 Clause 27.29 (Amendments);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (each a “Material Provision”).

  
	
   

  	
   

  	
   

  
	
  “Month”

  	
   

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

   

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

   

  (b)                                 if there is no numerically corresponding day in the 

  

 

21

 

	
   

  	
   

  	
  calendar
  month in which that period is to end, that period shall end on the last
  Business Day in that calendar month; and

   

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

   

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

  “Monthly”
  shall be construed accordingly.

  
	
   

  	
   

  	
   

  
	
  “Monthly Accounting Period”

  	
   

  	
  means each successive Month in each
  Financial Year.

  
	
   

  	
   

  	
   

  
	
  “New Equity”

  	
   

  	
  means the proceeds of any issue of ordinary
  shares in the share capital of the Company subscribed for by the Parent,
  where such shares satisfy the conditions set out in paragraph (b) of the
  definition of Permitted Share Issue.

  
	
   

  	
   

  	
   

  
	
  “Non-Obligor”

  	
   

  	
  means a member of the Group which is not an
  Obligor.

  
	
   

  	
   

  	
   

  
	
  “Obligor”

  	
   

  	
  means a Borrower or a Guarantor.

  
	
   

  	
   

  	
   

  
	
  “Obligors’ Agent”

  	
   

  	
  means the Company, appointed to act on
  behalf of each Obligor in relation to the Finance Documents pursuant to
  Clause 2.3 (Obligors’ Agent).

  
	
   

  	
   

  	
   

  
	
  “Optional Currency”

  	
   

  	
  means a currency (other than the Base
  Currency) which complies with the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).

  
	
   

  	
   

  	
   

  
	
  “Original
  Financial Statements”

  	
   

  	
  means:

   

  (a)                                  in relation to each Original Obligor (other than the Company)
  (consolidated in the case of an Obligor with its Subsidiaries), its audited financial
  statements for its Financial Year ended 31 January 2005;

   

  (b)                                 in relation any other Obligor, its audited financial statements
  delivered to the Agent as required by Clause 

  

 

22

 

	
   

  	
   

  	
  30 (Changes
  to the Obligors).

  
	
   

  	
   

  	
   

  
	
  “Original Obligor”

  	
   

  	
  means an Original Borrower or an Original
  Guarantor.

  
	
   

  	
   

  	
   

  
	
  “Parent Group”

  	
   

  	
  means the Parent and each of its
  Subsidiaries.

  
	
   

  	
   

  	
   

  
	
  “Parent”

  	
   

  	
  means Edgen/Murray, L.P a Delaware limited
  partnership acting through its general partner Edgen/Murray GP, LLC .

  
	
   

  	
   

  	
   

  
	
  “Participating Member State”

  	
   

  	
  means any member state of the European
  Communities that adopts or has adopted the euro as its lawful currency in
  accordance with legislation of the European Community relating to Economic
  and Monetary Union.

  
	
   

  	
   

  	
   

  
	
  “Partnership Agreement”

  	
   

  	
  means the partnership agreement for
  Murray/Edgen, L.P dated on or about the date of this Agreement by and among
  Edgen/Murray GP, LLC and the individuals and entities listed in Schedule 1
  attached thereto.

  
	
   

  	
   

  	
   

  
	
  “Party”

  	
   

  	
  means a party to this Agreement.

  
	
   

  	
   

  	
   

  
	
  “Pensions Report”

  	
   

  	
  means the pensions report prepared by
  Sacker & Partners and dated 9 December 2005 and addressed to,
  and/or capable of being relied upon by, the Arranger and the other Finance
  Parties.

  
	
   

  	
   

  	
   

  
	
  “Permitted Acquisition”

  	
   

  	
  means:

   

  (a)                                  the Acquisition;

   

  (b)                                 an acquisition by a member of the Group of an asset sold, leased,
  transferred or otherwise disposed of by another member of the Group in
  circumstances constituting a Permitted Disposal;

  (c)                                  an acquisition of securities which are Cash Equivalent Investments
  so long as those Cash Equivalent Investments become subject to the
  Transaction Security as soon as is reasonably practicable;

   

  (d)                                 an acquisition of assets is settlement of a debt due to an Obligor;

  

 

23

 

	
   

  	
   

  	
  (e)                                  an acquisition by any member of the Group of shares or a business
  (whether by way of shares or assets) where the consideration (including
  associated costs and expenses, any indebtedness or other assumed actual or
  contingent liabilities) at the date of such acquisition does not exceed
  £7,500,000 (or its equivalent in other currencies) when aggregated with all
  Joint Ventures permitted under paragraph (c) of Permitted Joint Ventures
  and such acquisition is not funded by a Utilisation under this Facility which
  would constitute unlawful financial assistance contrary to the provisions of section 151
  of the Companies Act 1985 (or any equivalent legislation in any Relevant
  Jurisdiction), unless the provisions of section 155 to 158 of that Act
  (or equivalent legislation in any Relevant Jurisdiction) have been complied
  with;

   

  Provided
  that in the case of (e) above, a report or valuation is prepared in
  connection with such acquisition which demonstrates to the satisfaction of
  the Agent (acting reasonably) that the acquisition is or will be EBITDA
  enhancing for the Group and the terms of such acquisition are not detrimental
  to the Group.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Disposal”

  	
   

  	
  means
  any sale, lease, licence, transfer or other disposal is on arm’s length
  terms:

   

  (a)                                  of trading stock or cash made by any member of the Group in the
  ordinary course of trading of the disposing entity;

   

  (b)                                 of any asset by a member of the Group (the “Disposing Company”) to another member of
  the Group (the “Acquiring Company”),
  but if:

   

  (i)                                     the Disposing Company is an Obligor, the Acquiring Company must
  also be an Obligor;

   

  (ii)                                  the Disposing Company had given Security

  

 

24

 

	
   

  	
   

  	
  over the
  asset, the Acquiring Company must give equivalent Security over that asset;
  and

   

  (iii)                               the Disposing Company is a Guarantor, the Acquiring Company must
  be a Guarantor guaranteeing at all times an amount no less than that guaranteed
  by the Disposing Company;

   

  (c)                                  provided no Default has occurred which is continuing, of assets
  (other than shares, businesses, Real Property or Intellectual Property or
  other assets the subject of a fixed change under the Transaction Security)
  the disposal proceeds of which are applied in exchange for other assets
  comparable or superior as to type, value or quality as soon as possible but
  in any event within 180 days of receipt or such longer period as the Majority
  Lenders may approve (acting reasonably);

   

  (d)                                 of obsolete or redundant vehicles, stock, plant and equipment for
  cash;

   

  (e)                                  of Cash Equivalent Investments for cash or in exchange for other
  Cash Equivalent Investments;

   

  (f)                                    constituted by a licence of intellectual property rights permitted
  by Clause 27.28 (Intellectual Property);

   

  (g)                                 arising as a result of any Permitted Security;

   

  (h)                                 to a Joint Venture as permitted by Clause 27.9 (Joint Ventures);

   

  (i)                                     of assets (other than shares) for cash where the aggregate of the
  higher of the market value and net consideration receivable (when aggregated
  with the higher of the market value and net consideration receivable for any
  other sale, lease, licence, transfer or other disposal not allowed under
  paragraphs (a) to (h) above or as a Permitted Transaction) does not
  exceed £2,000,000 or its

  

 

25

 

	
   

  	
   

  	
  equivalent) in any Financial Year of the
  Company.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Distribution”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  any dividend declared before the Closing Date;

   

  (b)                                 any dividend to the Company or any of its Subsidiaries strictly in
  accordance with its articles of association provided that:

   

  (i)                                     no Default has occurred or would occur as a result of the making
  of such a dividend payment and such payment is permitted under this Agreement
  and the Intercreditor Agreement; and

   

  (ii)                                  no dividend is made earlier than 31 January 2007.

  
	
   

  	
   

  	
   

  
	
  “Permitted Existing
  Indebtedness”

  	
   

  	
  means
  all indebtedness of any Obligor:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  under or in relation to any banking facility or other financing
  arrangement of any description whatsoever (and including without limitation
  any facility for the provision or issuance of letters of credit, guarantees
  or performance bonds, acceptances or bills discounting, trust receipts,
  import loans, forward foreign exchange contracts, receivables financing, and
  any overdraft, term and/or revolving facility in any currency (as the same may be
  varied, amended, renewed, supplemented novated or replaced from time to time
  and including any ancillary facilities which may from time to time be
  issued thereunder, the “Local Banking
  Facilities”) existing on the date of this Agreement (or to be
  entered into on terms agreed at or prior to Completion) between any Obligor
  and (i) HSBC or any of its Affiliates (“HSBC”)
  or (ii) Standard Chartered Bank or any of its Affiliates (“SCB”) in the United Arab Emirates or
  Singapore up to the overall facility limits (and sub-limits as applicable)
  set out in Schedule 13 (Permitted Existing
  Indebtedness) (or such higher amounts as the Agent

  

 

26

 

	
   

  	
   

  	
  (acting
  reasonably) may approve in writing) and any indebtedness of any Obligor
  arising under or in relation to any guarantee, bond, or counterindemnity
  given at any time in relation to the local Banking Facilities;

   

  (b)                                 arising under or in relation to any letters of credit, guarantees
  or performance bonds issued by the Issuing Bank prior to the date of this
  Agreement the issue of which shall constitute a Utilisation under this
  Agreement following compliance with the provisions of Clause 4.1 (Initial conditions precedent); and

   

  (c)                                  arising under or in relation any guarantee, letter of credit or
  performance bond issued by the Principal Borrower in favour of arising under
  or in relation to the Apollo Guarantees as defined in Clause 11.4 of the
  Acquisition Agreement.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Financial Indebtedness”

  	
   

  	
  means
  Financial Indebtedness:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  arising under any of the Company Intra-Group Loan Agreement, the
  Investment Documents and the Subordinated Loan Documents, in each case as in
  force on the date of this Agreement and subject always to the terms of this
  Agreement and the Intercreditor Agreement;

   

  (b)                                 to the extent covered by a Letter of Credit or other letter of
  credit, guarantee or indemnity issued under an Ancillary Facility;

   

  (c)                                  arising under a foreign exchange transaction for spot or forward
  delivery entered into in connection with protection against fluctuation in
  currency rates where that foreign exchange exposure arises in the ordinary
  course of trade or in respect of Utilisations made in Optional Currencies,
  but not a foreign exchange transaction for investment or speculative
  purposes;

  

 

27

 

	
   

  	
   

  	
  (d)                                 arising under a Permitted Loan or a Permitted Guarantee;

   

  (e)                                  under finance or capital leases of vehicles, plant, equipment or
  computers, provided that the
  aggregate capital value of all such items so leased under outstanding leases
  by an Obligor does not exceed £500,000 (or its equivalent in other
  currencies) at any time;

   

  (f)                                    not permitted by the preceding paragraphs or as a Permitted
  Transaction and the outstanding amount of which does not exceed £500,000 (or
  its equivalent) in aggregate for the Group at any time;

   

  (g)                                 Permitted Existing Indebtedness; and

   

  (h)                                 incurred with the prior written consent of the Agent.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Guarantee”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the endorsement of negotiable instruments in the ordinary course
  of trade;

   

  (b)                                 any guarantee, letter of credit, performance or similar bond
  guaranteeing performance by an Obligor under any contract entered into in the
  ordinary course of trade or counter indemnity in relation thereto;

   

  (c)                                  any guarantee permitted under Clause 27.20 (Financial Indebtedness);

   

  (d)                                 any guarantee given in respect of the netting or set-off
  arrangements permitted pursuant to paragraph (b) of the definition of
  Permitted Security;

   

  (e)                                  any guarantee of a Joint Venture to the extent permitted by Clause
  27.9 (Joint Ventures); and

   

  (f)                                    any guarantee entered into by any other member of the

  

 

28

 

	
   

  	
   

  	
  Group in respect of the Sale and Leaseback.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Joint Venture”

  	
   

  	
  means
  any investment in any Joint Venture where:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the Joint Venture is incorporated or established, and carries on
  its principal business in the European Union or the United States of America;
  and

   

  (b)                                 the Joint Venture is engaged in a business substantially the same
  as that carried on by the Group; and

   

  (c)                                  in any Financial Year, the aggregate (the “Joint
  Venture Investment”) of:

   

  (i)                                     all amounts subscribed for Shares if, lent to, or invested in all
  such Joint Ventures by any member of the Group;

   

  (ii)                                  the contingent liabilities of any member of the Group under any
  guarantee given in respect of the liabilities of any such Joint Venture; and

   

  (iii)                               (the market value of any assets transferred by any member of the
  Group to any such Joint Venture, does not at any time exceed when aggregated
  with any acquisitions permitted under paragraph (e) of the definition of
  Permitted Acquisitions £7,500,000 or its equivalent in other currencies.

  
	
   

  	
   

  	
   

  
	
  “Permitted Loan”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  any trade credit extended by any member of the Group to its
  customers on normal commercial terms and in the ordinary course of its
  trading activities;

   

  (b)                                 Financial Indebtedness which is referred to in the definition of,
  or otherwise constitutes, Permitted Financial Indebtedness (except under
  paragraph (d) of that definition);

  

 

29

 

	
   

  	
   

  	
  (c)                                  a loan made by an Obligor to another Obligor or made by a member
  of the Group which is not an Obligor to another member of the Group;

   

  (d)                                 a loan made to a Joint Venture permitted under Clause 27.9 (Joint Ventures);

   

  (e)                                  a loan made by a member of the Group to an employee or director of
  any member of the Group if the amount of that loan when aggregated with the
  amount of all loans to employees and directors by members of the Group does
  not exceed £50,000 (or its equivalent) at any time;

   

  (f)                                    any loan made by an Obligor to a member of the Parent Group which
  is not an Obligor so long as the aggregate amount of the Financial
  Indebtedness under any such loans does not exceed £500,000 (or its
  equivalent) at any time;

   

  (g)                                 any loan made by any member of the Group not covered by paragraphs
  (a) to (f) above which does not exceed £500,000 (or its equivalent)
  in aggregate at any time.

  
	
   

  	
   

  	
   

  
	
  “Permitted Payment”

  	
   

  	
  means
  a schedule interest payment under the Subordinated Loan Documents
  provided that:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  no Default is continuing or would occur as a result of the making
  of payment; and

   

  (b)                                 such payment is permitted by this Agreement and the Intercreditor
  Agreement.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Security”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  any lien arising by operation of law and in the ordinary course of
  trading and not as a result of any default or omission by any member of the
  Group;

   

  (b)                                 any netting or set-off arrangement entered into by any Obligor
  with an Ancillary Lender in the ordinary course of its banking arrangements
  for the purpose of netting 

  

 

30

 

	
   

  	
   

  	
  debit and
  credit balances of Obligors;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                  any Security or Quasi-Security over or affecting any asset
  acquired by a member of the Group after the Closing Date if:

   

  (i)                                     the Security or Quasi-Security was not created in contemplation of
  the acquisition of that asset by a member of the Group;

   

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

   

  (iii)                               the Security or Quasi-Security is removed or discharged within 90
  days of the date of acquisition of such asset;

   

  (d)                                 any Security or Quasi-Security over or affecting any asset of any
  company which becomes a member of the Group after the Closing Date, where the
  Security or Quasi-Security is created prior to the date on which that company
  becomes a member of the Group; if

   

  (i)                                     the Security or Quasi-Security was not created in contemplation of
  the acquisition of that company;

   

  (ii)                                  the principal amount secured has not increased in contemplation of
  or since the acquisition of that company;

   

  (iii)                               the Security or Quasi-Security is removed or discharged with 90
  days of the date of that company becoming a member of the Group;

   

  (e)                                  any Security created pursuant to the Subordinated Security
  Documents provided that the terms of this Agreement and

  

 

31

 

	
   

  	
   

  	
  the
  Intercreditor Agreement have been complied with;

   

  (f)                                    any Security arising under any retention of title, hire purchase
  or conditional sale arrangement or arrangements having similar effect in
  respect of goods supplied to a member of the Group in the ordinary course of
  trading and on the supplier’s standard or usual terms and not arising as a
  result of any default or omission by any member of the Group;

   

  (g)                                 any Security or Quasi-Security existing as at the date of this
  Agreement over assets of any member of the Target Group so long as the
  Security or Quasi-Security is irrevocably removed or discharged by no later
  than the Closing Date;

   

  (h)                                 any Quasi-Security arising as a result of a disposal which is a
  Permitted Disposal; and

   

  (i)                                     any Security or Quasi-Security arising as a consequence of:

   

  (i)                                     any finance lease permitted pursuant to paragraph (e); and

   

  (ii)                                  the permission contained in paragraph (f),

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  of the definition of “Permitted Financial
  Indebtedness”;

  
	
   

  	
   

  	
   

  
	
  “Permitted Share Issue”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  ordinary shares (or their equivalent in units) by the Parent to
  the Investors, paid for in full in cash upon issue and which by their terms
  are not redeemable and where (i) such shares are of the same class and
  on the same terms as those initially issued by the Parent and (ii) such
  issue does not lead to a Change of Control; and

   

  (b)                                 ordinary shares by a member of the Group which is a Subsidiary to
  its immediate Holding Company where (if the existing shares of the Subsidiary
  are the subject of the Transaction Security) the newly-issued shares also

  

 

32

 

	
   

  	
   

  	
  become
  subject to the Transaction Security on the same terms.

  
	
   

  	
   

  	
   

  
	
  “Permitted
  Transaction”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  any disposal required, Financial Indebtedness incurred, guarantee,
  indemnity or Security or Quasi-Security given, or other transaction arising,
  under the Finance Documents; 

   

  (b)                                 the solvent liquidation or reorganisation of any member of the
  Group which is not an Obligor so long as any payments or assets distributed
  as a result of such liquidation or reorganisation are distributed to other
  members of the Group;

   

  (c)                                  the Sale and Leaseback;

   

  (d)                                 transactions (other than the granting or creation of Security or
  the incurring or permitting to subsist of Financial Indebtedness) conducted
  in the ordinary course of trading on arm’s length terms;

   

  (e)                                  the indemnity given by the Company to the Vendors pursuant to
  clause 11.8 of the Acquisition Agreement in respect of performance bonds and
  letters of credit issued by or for Target or its Subsidiaries.

  
	
   

  	
   

  	
   

  
	
  “Principal Borrower”

  	
   

  	
  means Murray International Metals Limited
  (registered number 01241058).

  
	
   

  	
   

  	
   

  
	
  “Qualifying Lender”

  	
   

  	
  has the meaning given to that term in
  Clause 18 (Tax gross-up and indemnities).

  
	
   

  	
   

  	
   

  
	
  “Quarter Date”

  	
   

  	
  means the last day of a Quarterly Period.

  
	
   

  	
   

  	
   

  
	
  “Quarterly Period”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “Quasi-Security”

  	
   

  	
  has the meaning given to that term in
  Clause 27.14 (Negative

  

 

33

 

	
   

  	
   

  	
  pledge).

  
	
   

  	
   

  	
   

  
	
  “Quotation Day”

  	
   

  	
  means, in relation to any period for which
  an interest rate is to be determined:

   

  (a)                                            (if the currency is sterling) the first day of that period;

   

  (b)                                           (if the currency is euro) two TARGET Days before the first day of
  that period; or 

   

  (c)                                            (for any other currency) two Business Days before the first day of
  that period, 

   

  unless market practice differs in the Relevant
  Interbank Market for a currency, in which case the Quotation Day for that
  currency will be determined by the Agent in accordance with market practice
  in the Relevant Interbank Market (and if quotations would normally be given
  by leading banks in the Relevant Interbank Market on more than one day, the
  Quotation Day will be the last of those days).

  
	
   

  	
   

  	
   

  
	
  “Real Property”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  any freehold, leasehold or immovable property; and

   

  (b)                                 any buildings, fixtures, fittings, fixed plant or machinery from
  time to time situated on or forming part of that freehold, leasehold or
  immovable property.

  
	
   

  	
   

  	
   

  
	
  “Receiver”

  	
   

  	
  means a receiver or receiver and manager or
  administrative receiver of the whole or any part of the Charged
  Property.

  
	
   

  	
   

  	
   

  
	
  “Reference Banks”

  	
   

  	
  means, in relation to LIBOR, the principal
  London offices of The Governor and Company of the Bank of Scotland and such
  other banks as may be appointed by the Agent in consultation with the
  Principal Borrower.

  
	
   

  	
   

  	
   

  
	
  “Relevant Interbank Market”

  	
   

  	
  means the London interbank market.

  
	
   

  	
   

  	
   

  
	
  “Relevant
  Jurisdiction”

  	
   

  	
  means,
  in relation to an Obligor:

  

 

34

 

	
   

  	
   

  	
  (a)                                  its jurisdiction of incorporation;

   

  (b)                                 any jurisdiction where any asset subject to or intended to be
  subject to the Transaction Security to be created by it is situated; and

   

  (c)                                  the jurisdiction whose laws govern the perfection of any of the
  Transaction Security Documents entered into by it.

  
	
   

  	
   

  	
   

  
	
  “Relevant Period”

  	
   

  	
  has the meaning given to that term in
  Clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “Renewal Request”

  	
   

  	
  means a written notice delivered to the
  Agent in accordance with Clause 6.6 (Renewal
  of a Letter of Credit).

  
	
   

  	
   

  	
   

  
	
  “Repayment Date”

  	
   

  	
  means the last day of an Interest Period
  for a Revolving Facility Loan.

  
	
   

  	
   

  	
   

  
	
  “Repeating Representations”

  	
   

  	
  means each of the representations set out
  in Clause 24.2 (Status) to
  Clause 24.7 (Governing law and enforcement),
  Clause 24.11 (No default),
  Clause 24.13.5 (Original Financial
  Statements), Clause 24.14 (No proceedings pending
  or threatened), Clause 24.19 (Ranking)
  to Clause 24.21 (Legal and beneficial
  ownership) and Clause 24.26 (Centre
  of main interests and establishments).

  
	
   

  	
   

  	
   

  
	
  “Reports”

  	
   

  	
  means the Accountants’ Report, the Legal
  Due Diligence Reports, the Environmental Report and the Pensions Report.

  
	
   

  	
   

  	
   

  
	
  “Resignation Letter”

  	
   

  	
  means a letter substantially in the form set
  out in Schedule 7 (Form of
  Resignation Letter).

  
	
   

  	
   

  	
   

  
	
  “Revolving Facility”

  	
   

  	
  means the revolving credit facility made
  available under this Agreement as described in Clause 2.1 (The Facilities).

  
	
   

  	
   

  	
   

  
	
  “Revolving Facility Commitment”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

35

 

	
   

  	
   

  	
  Revolving
  Facility Commitment transferred to it under this Agreement; and

   

  (b)                                 in relation to any other Lender, the amount in the Base Currency
  of any Revolving Facility Commitment transferred to it under this Agreement,

   

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

  
	
   

  	
   

  	
   

  
	
  “Revolving Facility Loan”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Revolving Facility Utilisation”

  	
   

  	
  means a Revolving Facility Loan, a Letter
  of Credit or a Forward Contract.

  
	
   

  	
   

  	
   

  
	
  “Rollover
  Loan”

  	
   

  	
  means
  one or more Revolving Facility Loans:

   

  (a)                                  made or to be made on the same day that:

   

  (i)                                     a maturing Revolving Facility Loan is due to be repaid; or

   

  (ii)                                  a demand by the Agent pursuant to a drawing in respect of a Letter
  of Credit or Forward Contract is due to be met;

   

  (b)                                 the aggregate amount of which is equal to or less than the
  maturing Revolving Facility Loan or the relevant claim in respect of that
  Letter of Credit or Forward Contract;

   

  (c)                                  in the same currency as the maturing Revolving Facility Loan
  (unless it arose as a result of the operation of Clause 8.2 (Unavailability of a currency)) or the
  relevant claim in respect of that Letter of Credit or Forward Contract; and

   

  (d)                                 made or to be made to the same Borrower for the purpose of;

  

 

36

 

	
   

  	
   

  	
  (i)                                     refinancing that maturing Revolving Facility Loan; or

   

  (ii)                                  satisfying the relevant claim in respect of that Letter of Credit
  or Forward Contract.

  
	
   

  	
   

  	
   

  
	
  “Sale”

  	
   

  	
  means
  the sale of all or substantially all of the assets of the Group whether in a
  single transaction or a series of related transactions.

  
	
   

  	
   

  	
   

  
	
  “Sale
  and Leaseback”

  	
   

  	
  means
  the sale and leaseback of part of the land and buildings located at
  Newbridge Industrial Estate, Newbridge, Midlothian subject to a lease to be
  entered into on or around the date of this Agreement between Steels (UK) QRS
  16-58, Inc. as landlord and Target as tenant.

  
	
   

  	
   

  	
   

  
	
  “Sale
  and Leaseback Documents”

  	
   

  	
  means
  each document evidencing the Sale and Leaseback arrangements.

  
	
   

  	
   

  	
   

  
	
  “Scottish Due Diligence Reports”

  	
   

  	
  means the legal due diligence reports dated
  12 December 2005 prepared by Dickson Minto WS.

  
	
   

  	
   

  	
   

  
	
  “Screen Rate”

  	
   

  	
  means, in relation to LIBOR, the British
  Bankers’ Association Interest Settlement Rate for the relevant currency and
  period, displayed on the appropriate page of the Telerate screen. If the
  agreed page is replaced or service ceases to be available, the Agent may specify
  another page or service displaying the appropriate rate after
  consultation with the Company and the Lenders.

  
	
   

  	
   

  	
   

  
	
  “Secured Parties”

  	
   

  	
  means each Finance Party from time to time
  party to this Agreement, and any Receiver or Delegate.

  
	
   

  	
   

  	
   

  
	
  “Security”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Senior Management”

  	
   

  	
  means Kenneth Andrew Cockburn.

  
	
   

  	
   

  	
   

  
	
  “Service Contract”

  	
   

  	
  means a service contract of each member of
  Senior Management in agreed form.

  

 

37

 

	
  “Singapore Dollars” and “SD”

  	
   

  	
  means the lawful currency of Singapore.

  
	
   

  	
   

  	
   

  
	
  “Singapore Due Diligence”

  	
   

  	
  means the legal due diligence report dated
  on or around 30 November 2005 prepared by Kelvin Chia Partnership.

  
	
   

  	
   

  	
   

  
	
  “Specified Time”

  	
   

  	
  means a time determined in accordance with Schedule 9
  (Timetables).

  
	
   

  	
   

  	
   

  
	
  “Sterling and “£”

  	
   

  	
  means the lawful currency of the United
  Kingdom.

  
	
   

  	
   

  	
   

  
	
  “Structure
  Memorandum”

  	
   

  	
  means
  the structure memorandum prepared by PriceWaterhouseCoopers correct as at 3 November 2005.

  
	
   

  	
   

  	
   

  
	
  “Subordinated
  Creditor”

  	
   

  	
  means
  the Trustee, The Bank of New York in its capacity as trustee under the
  indenture as referred to at paragraph (a) of the definition of
  Subordinated Security Documents as the holders of the Floating Rate Notes.

  
	
   

  	
   

  	
   

  
	
  “Subordinated Debt”

  	
   

  	
  means
  the subordinated debt made available under the Subordinated Loan Documents.

  
	
   

  	
   

  	
   

  
	
  “Subordinated Loan Agreements”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the Floating Rate Note Documents; and

   

  (b)                                 any subsequent agreement or other document entered into by any
  member of the Group in respect of any Subordinated Debt in accordance with
  the terms of the Agreement and the Intercreditor Agreement.

  
	
   

  	
   

  	
   

  
	
  “Subordinated Loan Documents”

  	
   

  	
  means the Subordinated Loan Agreements, the
  Subordinated Security Documents or any other document which is designated a “Subordinated Loan Document” by the Company, the
  Subordinated Creditor and the Agent.

  
	
   

  	
   

  	
   

  
	
  “Subordinated Security Documents”

  	
   

  	
  means:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the indenture between, inter alia, the Issuer, the Company and The
  Bank of New York in its capacities as trustee and collateral agent pursuant
  to which each of the

  

 

38

 

	
   

  	
   

  	
  Obligors
  guarantees and provides security for the obligations of the Issuer under the
  Floating Rate Notes;

   

  (b)                                 a second ranking debenture granting fixed and floating charges
  over the assets and undertaking of, inter alia, the Company in the agreed
  form; and

   

  (c)                                  any other document entered into by any member of the Group
  creating or expressed to create Security over all or any part of its
  assets in respect of any obligations of the Obligors under any of the
  Subordinated Loan Documents, such Security being subordinated to the Finance
  Parties pursuant to the terms of the Intercreditor Agreement.

  
	
   

  	
   

  	
   

  
	
  “Subsidiary”

  	
   

  	
  means any company or corporation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  which is controlled, directly or indirectly by the first-mentioned
  company or corporation; or

   

  (b)                                 more than half the issued share capital of which is beneficially
  owned, directly or indirectly, by the first-mentioned company or corporation;
  or

   

  (c)                                  which is a subsidiary of another subsidiary of the first mentioned
  company or corporation;

   

  and, for these purposes, a company or
  corporation shall be treated as being controlled by another if that other
  company or corporation is able to direct its affairs and/or to control the
  composition of its board of directors or equivalent body;

  
	
   

  	
   

  	
   

  
	
  “Target”

  	
   

  	
  means the Principal Borrower.

  
	
   

  	
   

  	
   

  
	
  “Target Group”

  	
   

  	
  means the Target and its Subsidiaries.

  
	
   

  	
   

  	
   

  
	
  “Target Shares”

  	
   

  	
  means the entire issued share capital of
  Target.

  
	
   

  	
   

  	
   

  
	
  “TARGET”

  	
   

  	
  means Trans-European Automated Real-time
  Gross Settlement Express Transfer payment system.

  

 

39

 

	
  “TARGET Day”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Tax”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “Taxes Act”

  	
   

  	
  means the Income and Corporation Taxes Act
  1988.

  
	
   

  	
   

  	
   

  
	
  “Term”

  	
   

  	
  means each period determined under this
  Agreement for which the Issuing Bank is under a liability under a Letter of
  Credit.

  
	
   

  	
   

  	
   

  
	
  “Termination
  Date”

  	
   

  	
  means
  the earlier to occur of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)                                  the date falling immediately prior to the date of maturity or
  earlier redemption, repayment or prepayment of the Floating Rate Notes; and

   

  (b)                                 the sixth anniversary of the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
  “Total Commitments”

  	
   

  	
  means the aggregate of the Revolving
  Facility Commitments, being £27,000,000 at the date of this Agreement.

  
	
   

  	
   

  	
   

  
	
  “Transaction Documents”

  	
   

  	
  means the Finance Documents, the
  Acquisition Documents, the Investment Documents, the Sale and Leaseback
  Documents and the Subordinated Debt Documents.

  
	
   

  	
   

  	
   

  
	
  “Transaction Security”

  	
   

  	
  means the Security created or expressed to
  be created in favour of the Security Trustee pursuant to the Transaction
  Security Documents.

  
	
   

  	
   

  	
   

  
	
  “Transaction Security Documents”

  	
   

  	
  means each of the documents listed as being
  a Transaction Security Document in paragraph 3.7 of Part I of Schedule 2
  (Conditions Precedent) and any
  document required to be delivered to the Agent under paragraph 12 of Part II
  of Schedule 2 (Conditions Precedent)
  together with any other document entered into by any Obligor creating or
  expressed to create any Security over all or any part of its assets in
  respect of the obligations of any of the Obligors under any of the Finance
  Documents.

  

 

40

 

	
  “Transfer Certificate”

  	
   

  	
  means a certificate substantially in one of
  the forms set out in Schedule 5 (Form of
  Transfer Certificates) or any other form agreed between the
  Agent and the Company.

  
	
   

  	
   

  	
   

  
	
  “Transfer
  Date”

  	
   

  	
  means,
  in relation to a transfer, the later of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           the
  proposed Transfer Date specified in the Transfer Certificate; and

   

  (b)           the
  date on which the Agent executes the Transfer Certificate.

  
	
   

  	
   

  	
   

  
	
  “Treasury Transactions”

  	
   

  	
  means any derivative transaction entered
  into in connection with protection against or benefit from fluctuation in any
  rate or price.

  
	
   

  	
   

  	
   

  
	
  “Trustee”

  	
   

  	
  means The Bank of New York in its capacity
  as security trustee and collateral agent for the noteholders under the
  Subordinated Loan Documents.

  
	
   

  	
   

  	
   

  
	
  “UAE Due Diligence Report”

  	
   

  	
  means the legal due diligence report dated
  29 November 2005 prepared by Hadef Al Dhahiri & Associates.

  
	
   

  	
   

  	
   

  
	
  “Unpaid Sum”

  	
   

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

  
	
   

  	
   

  	
   

  
	
  “US Dollars” or “$”

  	
   

  	
  means the lawful currency of the United
  States of America.

  
	
   

  	
   

  	
   

  
	
  “Utilisation”

  	
   

  	
  means a Loan or a Letter of Credit.

  
	
   

  	
   

  	
   

  
	
  “Utilisation Date”

  	
   

  	
  means the date on which a Utilisation is
  made.

  
	
   

  	
   

  	
   

  
	
  “Utilisation Request”

  	
   

  	
  means a notice substantially in the
  relevant form set out in Part Ia of schedule 3 (Requests).

  
	
   

  	
   

  	
   

  
	
  “Working Capital Adjustment”

  	
   

  	
  has the meaning given to that term in
  clause 26.1 (Financial definitions).

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  means value added tax as provided for in
  the Value Added Tax Act 1994 and any other tax of a similar nature.

  
	
   

  	
   

  	
   

  
	
  “Vendors”

  	
   

  	
  means Murray Metals Group Limited, Kenneth
  Andrew Cockburn, Patrick Joseph Boyle and William Hamilton.

  

 

41

 

1.2              Construction

 

1.2.1           Unless
a contrary indication appears, a reference in this Agreement to:

 

(a)        the “Agent”, the “Arranger”, any “Finance
Party”, any “Issuing Bank”,
any “Lender”, any “Obligor”, any “Party”, any “Secured Party”,
the “Security Trustee” or any
other person shall be construed so as to include its successors in title,
permitted assigns and permitted transferees and, in the case of the Security
Trustee, any person for the time being appointed as Security Trustee or
Security Trustees in accordance with the Finance Documents;

 

(b)        a
document in “agreed form” is a document
which is previously agreed in writing by or on behalf of the Company and the
Agent or, if not so agreed, is in the form specified by the Agent;

 

(c)        “assets” includes present and future
properties, revenues and rights of every description;

 

(d)        a “Finance Document” or a “Transaction Document” or any other
agreement or instrument is a reference to that Finance Document or Transaction
Document or other agreement or instrument as amended or novated (however
fundamentally);

 

(e)        “guarantee” means (other than in Clause 23 (Guarantee and Indemnity)) any guarantee,
letter of credit, bond, indemnity or similar assurance against loss, or any
obligation, direct or indirect, actual or contingent, to purchase or assume any
indebtedness of any person or to make an investment in or loan to any person or
to purchase assets of any person where, in each case, such obligation is
assumed in order to maintain or assist the ability of such person to meet its
indebtedness;

 

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

 

(g)        a Lender’s
“participation” in relation to a
Letter of Credit, shall be construed as a reference to the relevant amount that
is or may be payable by a Lender in relation to that Letter of Credit;

 

(h)        a “person” includes any person, firm, company,
corporation, government, state or agency of a state or any association, trust
or partnership (whether or not having separate legal personality) of two or
more of the foregoing;

 

42

 

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

 

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

 

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

 

1.2.2           Section,
Clause and Schedule headings are for ease of reference only.

 

1.2.3           Unless
a contrary indication appears, a term used in any other Finance Document or in
any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

 

1.2.4           A
Borrower providing “cash cover”
for a Letter of Credit or an Ancillary Facility means a Borrower paying an
amount in the currency of the Letter of Credit (or, as the case may be,
Ancillary Facility) to an interest-bearing account in the name of the Borrower
and the following conditions being met:

 

(a)        the
account is with the Agent (if the cash cover is to be provided for all the
Lenders) or with a Lender or Ancillary Lender (if the cash cover is to be
provided for that Lender or Ancillary Lender);

 

(b)        until no
amount is or may be outstanding under that Letter of Credit or Ancillary
Facility, withdrawals from the account may only be made to pay a Finance
Party amounts due and payable to it under this Agreement in respect of that
Letter of Credit or Ancillary Facility; and

 

(c)        the
Borrower has executed a security document over that account, in form and
substance satisfactory to the Agent or the Lender or Ancillary Lender with
which that account is held, creating a first ranking security interest over
that account.

 

1.2.5           A
Default (other than an Event of Default) is “continuing”
if it has not been remedied or waived and an Event of Default is “continuing” if it has not been remedied or
waived.

 

1.2.6           A
Borrower “repaying” or “prepaying” a Letter of Credit or Ancillary
Outstandings means:

 

43

 

(a)        that
Borrower providing cash cover for that Letter of Credit or in respect of the
Ancillary Outstandings;

 

(b)        the
maximum amount payable under the Letter of Credit or Ancillary Facility being
reduced or cancelled in accordance with its terms; or

 

(c)        the
Issuing Bank or Ancillary Lender being satisfied that it has no further
liability under that Letter of Credit or Ancillary Facility,

 

and the amount by which a Letter of Credit
is, or Ancillary Outstandings are, repaid or prepaid under sub-paragraphs 1.2.6(a) and
(b) above is the amount of the relevant cash cover or reduction.

 

1.2.7           An
amount borrowed includes any amount utilised by way of Letter of Credit or
under an Ancillary Facility.

 

1.2.8           A
Lender funding its participation in a Utilisation includes a Lender
participating in a Letter of Credit.

 

1.2.9           An
outstanding amount of a Letter of Credit at any time is the maximum amount that
is or may be payable by the relevant Borrower in respect of that Letter of
Credit at that time.

 

1.3              Third party rights

 

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

 

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

 

44

 

SECTION 2

 

THE
FACILITIES

 

2.                THE FACILITIES

 

2.1              The Facilities

 

Subject to the terms of this Agreement, the
Lenders make available a multicurrency revolving credit facility, a letter of
credit facility and a forward foreign exchange contracts facility in an
aggregate amount the Base Currency Amount of which is equal to the Total
Commitments.

 

2.2              Finance Parties’ rights and obligations

 

2.2.1           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.

 

2.2.2           The
rights of each Finance Party under or in connection with the Finance Documents
are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from an Obligor shall be a separate and
independent debt.

 

2.2.3           A
Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

 

2.3              Obligors’ Agent

 

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

 

(a)        the Company
on its behalf to supply all information concerning itself contemplated by this
Agreement to the Finance Parties and to give all notices and instructions
(including, in the case of a Borrower, Utilisation Requests), to execute on its
behalf any Accession Letter, to make such agreements and to effect the relevant
amendments, supplements and variations capable of being given, made or effected
by any Obligor notwithstanding that they may affect the Obligor, without
further reference to or the consent of that Obligor; and

 

45

 

(b)        each
Finance Party to give any notice, demand or other communication to that Obligor
pursuant to the Finance Documents to the Company,

 

and in each case the Obligor shall be bound
as though the Obligor itself had given the notices and instructions (including,
without limitation, any Utilisation Requests) or executed or made the
agreements or effected the amendments, supplements or variations, or received
the relevant notice, demand or other communication.

 

2.3.2           Every
act, omission, agreement, undertaking, settlement, waiver, amendment,
supplement, variation, notice or other communication given or made by the
Obligors’ Agent or given to the Obligors’ Agent under any Finance Document on
behalf of another Obligor or in connection with any Finance Document (whether
or not known to any other Obligor and whether occurring before or after such
other Obligor became an Obligor under any Finance Document) shall be binding
for all purposes on that Obligor as if that Obligor had expressly made, given
or concurred with it. In the event of any conflict between any notices or other
communications of the Obligors’ Agent and any other Obligor, those of the
Obligors’ Agent shall prevail.

 

3.                PURPOSE

 

3.1              Purpose

 

Each Borrower shall apply all amounts
borrowed by it under the Revolving Facility, any Letter of Credit and any
utilisation of any Ancillary Facility towards the general corporate and working
capital purposes of the Group or, save to the extent that Clause 3.2 (Unlawful financial assistance) is not complied with, to pay
interest on the Subordinated Debt or in or towards the discharge of the Working
Capital Adjustment.

 

3.2              Unlawful financial assistance

 

Each Borrower undertakes that no Utilisations
shall be used in any way which would be illegal under, or would cause the
invalidity or unenforceability in whole or in part of any Finance Document
under, any applicable law relating to the giving of unlawful financial
assistance (including, without limitation, Section 151 of the Act unless
the procedure laid down by Sections 155 to 158 inclusive of the Act is complied
with).

 

3.3              Monitoring

 

No Finance Party is bound to monitor or
verify the application of any amount borrowed pursuant to this Agreement.

 

46

 

4.                CONDITIONS OF UTILISATION

 

4.1              Initial conditions precedent

 

No Borrower will deliver a Utilisation
Request unless the Agent has received all of the documents and other evidence
listed in Part I of Schedule 2 (Conditions
precedent) in form and substance satisfactory to the Agent
(acting reasonably). The Agent shall notify the Company and the Lenders
promptly upon being so satisfied.

 

4.2              Further conditions precedent

 

The Lenders will only be obliged to comply
with Clause 5.4 (Lenders’ participation)
if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

4.2.1           in the
case of a Rollover Loan, no Event of Default is continuing or would result from
the proposed Loan and, in the case of any other Utilisation, no Default is
continuing or would result from the proposed Utilisation; and

 

4.2.2           in
relation to any Utilisation on the Closing Date, all the representations and
warranties in Clause 24 (Representations)
or, in relation to any other Utilisation, the Repeating Representations, to be
made by each Obligor are true in all material respects.

 

4.3              Conditions relating to Optional Currencies

 

4.3.1           A
currency will constitute an Optional Currency in relation to a Revolving
Facility Utilisation if:

 

(a)        it is
readily available in the amount required and freely convertible into the Base
Currency in the Relevant Interbank Market at the Specified Time or, if later,
on the date the Agent receives the relevant Utilisation Request and the
Utilisation Date for that Utilisation; and

 

(b)        it is US
Dollars, Singapore Dollars or UAE Dirhams or has been approved by the Agent
(acting on the instructions of all the Lenders) on or prior to receipt by the
Agent of the relevant Utilisation Request for that Utilisation.

 

4.3.2           If the
Agent has received a written request from a Borrower (or the Company on its
behalf) for a currency to be approved under Clause 4.3.1(b) above, the
Agent will confirm to the relevant Borrower or the Company (as applicable) by
the Specified Time:

 

47

 

(a)        whether
or not the Lenders have granted their approval; and

 

(b)        if
approval has been granted, the minimum amount (and, if required, integral
multiples) for any subsequent Utilisation, or prepayment of a Utilisation, in
that currency.

 

4.4              Maximum number of Utilisations

 

4.4.1           A
Borrower (or the Company) may not deliver more than 10 Utilisation Requests
in any Month for cash advances under the Revolving Facility.

 

4.4.2           Any
Loan made by a single Lender under Clause 8.2 (Unavailability
of a currency) shall not be taken into account in this Clause 4.4.

 

48

 

SECTION 3

 

UTILISATION

 

5.                UTILISATION - LOANS

 

5.1              Delivery of a Utilisation Request

 

A Borrower (or the Company on its behalf) may utilise
the Facility by delivery to the Agent of a duly completed Utilisation Request
not later than the Specified Time.

 

5.2              Completion of a Utilisation Request for Loans

 

5.2.1           Each
Utilisation Request for a Loan is irrevocable and will not be regarded as
having been duly completed unless:

 

(a)        the
proposed Utilisation Date is a Business Day within the Availability Period
applicable to the Facility;

 

(b)        the
currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

 

(c)        the
proposed Interest Period complies with Clause 15 (Interest Periods).

 

5.2.2           Only
one Utilisation may be requested in each Utilisation Request.

 

5.3              Currency and amount

 

5.3.1           The
currency specified in a Utilisation Request must be the Base Currency or an
Optional Currency.

 

5.3.2           The
amount of the proposed Utilisation must be:

 

(a)        if the
currency selected is the Base Currency, a minimum of £250,000 and a multiple of
£250,000 or, if less, the Available Facility; or

 

(b)        if the
currency selected is US Dollars, Singapore Dollars or UAE Dirhams, a minimum of
the equivalent of £250,000 in such Optional Currency and a multiple of the
equivalent of  £250,000 of that currency
or, if less, the Available Facility; or

 

(c)        if the
currency selected is an Optional Currency other than those specified at Clause  5.3.2(b) above, the minimum amount (and,
if required, integral multiple) specified by

 

49

 

the Agent pursuant to Clause 4.3 (Conditions relating to Optional Currencies)
or, if less, the Available Facility; and

 

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

 

5.4              Lenders’ participation

 

5.4.1           If the
conditions set out in this Agreement have been met, each Lender shall make its
participation in each Loan available by the Utilisation Date through its
Facility Office.

 

5.4.2           The
amount of each Lender’s participation in each Loan will be equal to the
proportion borne by its Available Commitment to the Available Facility
immediately prior to making the Loan.

 

5.4.3           The
Agent shall determine the Base Currency Amount of each Revolving Facility Loan
which is to be made in an Optional Currency and notify each Lender of the
amount, currency and the Base Currency Amount of each Loan and the amount of
its participation in that Loan by the Specified Time.

 

5.5              Limitations on Utilisations

 

The maximum aggregate amount of the Revolving
Facility Loans utilised by way of cash advances and excluding, for the
avoidance of doubt, all ancillaries utilised by way of Letters of Credit or
Forward Contracts of all the Lenders shall not at any time exceed £12,000,000.

 

5.6              Clean down

 

The Company shall ensure that the aggregate
of all Revolving Facility Loans Less any amount
of cash or Cash Equivalent Investments held by wholly owned members of the
Group (as confirmed in a certificate signed by two authorised signatories of
the Company provided to the Agent within 10 Business Days after the end of each
Financial Year) shall not exceed;

 

5.6.1           for
the Financial Year ending on 31 January 2007, £3,000,000; and

 

5.6.2           thereafter,
zero,

 

for a period of not less than 10 successive
Business Days in each of its Financial Years. Not less than 12 Months shall
elapse between two such periods.

 

50

 

6.                UTILISATION - LETTERS OF CREDIT

 

6.1              The Revolving Facility

 

The Revolving Facility may be utilised
by way of Letters of Credit.

 

6.2              Delivery of a Utilisation Request for Letters of Credit

 

A Borrower (or the Company on its behalf) may request
a Letter of Credit to be issued by delivery to the Agent of a duly completed
Utilisation Request substantially in the form of part 1B of Schedule 3
(Utilisation Request – Letters of Credit) not
later than the Specified Time.

 

6.3              Completion of a Utilisation Request for Letters of Credit

 

Each Utilisation Request for a Letter of
Credit is irrevocable and will not be regarded as having been duly completed
unless:

 

6.3.1           it
specifies that it is for a Letter of Credit;

 

6.3.2           it
identifies the Borrower of the Letter of Credit;

 

6.3.3           the
proposed Utilisation Date is a Business Day within the Availability Period
applicable to the Revolving Facility;

 

6.3.4           the
currency and amount of the Letter of Credit comply with Clause 6.4 (Currency and amount);

 

6.3.5           the form of
Letter of Credit is attached;

 

6.3.6           the
Expiry Date of the Letter of Credit shall not fall later than the third
anniversary of the date of issue of the Letter of Credit and on or before the
Termination Date;

 

6.3.7           the
delivery instructions for the Letter of Credit are specified; and

 

6.3.8           the
identity of the beneficiary of the Letter of Credit is a beneficiary approved
by the Majority Lenders (such approval not to be unreasonably withheld or
delayed) provided that the prior approval of the Majority Lenders shall not be
required in relation to any beneficiary operating in an Approved Jurisdiction
or in relation to renewal of any existing Letters of Credit previously issued
by the Issuing Bank which a Borrower has requested be renewed or replaced on
substantially the same terms as currently apply to such Letter of Credit.

 

51

 

6.4              Currency and amount

 

6.4.1           The
currency specified in a Utilisation Request must be the Base Currency or an
Optional Currency.

 

6.4.2           The
amount of the proposed Letter of Credit must be an amount whose Base Currency
Amount is not more than the Available Facility.

 

6.5              Issue of Letters of Credit

 

6.5.1           If the
conditions set out in this Agreement have been met, the Issuing Bank shall
issue the Letter of Credit on the Utilisation Date.

 

6.5.2           The
Issuing Bank will only be obliged to comply with Clause 6.5.1 if on the date of
the Utilisation Request or Renewal Request and on the proposed Utilisation
Date:

 

(a)        in the
case of a Letter of Credit to be renewed in accordance with Clause 6.6 (Renewal of a Letter of Credit) no Event of
Default is continuing or would result from the proposed Utilisation and, in the
case of any other Utilisation, no Default is continuing or would result from
the proposed Utilisation; and

 

(b)        in
relation to any Utilisation on the Closing Date, all the representations and
warranties in Clause 24 (Representations)
or, in relation to any other Utilisation, the Repeating Representations to be
made by each Obligor are true in all material respects.

 

6.5.3           The
amount of each Lender’s participation in each Letter of Credit will be equal to
the proportion borne by its Available Commitment to the Available Facility (in
each case in relation to the Revolving Facility) immediately prior to the issue
of the Letter of Credit.

 

6.5.4           The
Agent shall determine the Base Currency Amount of each Letter of Credit which
is to be issued in an Optional Currency and shall notify the Issuing Bank and
each Lender of the details of the requested Letter of Credit and its
participation in that Letter of Credit by the Specified Time.

 

6.6              Renewal of a Letter of Credit

 

6.6.1           A
Borrower (or the Company on its behalf) may request that any Letter of
Credit issued on behalf of that Borrower be renewed by delivery to the Agent of
a Renewal

 

52

 

Request in substantially similar form to
a Utilisation Request for a Letter of Credit by the Specified Time.

 

6.6.2           The
Finance Parties shall treat any Renewal Request in the same way as a
Utilisation Request for a Letter of Credit except that the conditions set out
in Clauses 6.3.5  and 6.3.8 shall not
apply.

 

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

 

(a)        its
amount may be less than the amount of the Letter of Credit immediately
prior to its renewal; and

 

(b)        its Term
shall start on the date which was the Expiry Date of the Letter of Credit
immediately prior to its renewal, and shall end on the proposed Expiry Date
specified in the Renewal Request.

 

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

 

6.7              Revaluation of Letters of Credit

 

6.7.1           If any
Letters of Credit are denominated in an Optional Currency, the Agent shall at
six monthly intervals 5 Business Days after the end of each half of each of its
Financial Years recalculate the Base Currency Amount of each Letter of Credit
by notionally converting into the Base Currency the outstanding amount of that
Letter of Credit on the basis of the Agent’s Spot Rate of Exchange on the date
of calculation.

 

6.7.2           The Company
shall, if requested by the Agent within 5  Business Days of any calculation under Clause 6.7.1
above, ensure that within 5 Business Days sufficient Revolving Facility
Utilisations are prepaid or cash cover provided to prevent the Base Currency
Amount of the Revolving Facility Utilisations exceeding the Total Commitments (after
deducting the total Ancillary Commitments) following any adjustment to a Base
Currency Amount under Clause 6.7.1 above.

 

53

 

7.                LETTERS OF CREDIT

 

7.1              Immediately payable

 

If a Letter of Credit or any amount
outstanding under a Letter of Credit is expressed to be immediately payable,
the Borrower that requested (or on behalf of which the Company requested) the
issue of that Letter of Credit shall repay or prepay that amount immediately.

 

7.2              Claims under a Letter of Credit

 

7.2.1           Each
Borrower irrevocably and unconditionally authorises the Issuing Bank to pay any
claim made or purported to be made under a Letter of Credit requested by it (or
requested by the Company on its behalf) and which is valid on its face (in this
Clause 7, a “claim”).

 

7.2.2           Each
Borrower shall immediately on demand pay to the Agent for the Issuing Bank an
amount equal to the amount of any claim.

 

7.2.3           Each
Borrower acknowledges that the Issuing Bank:

 

(a)        is not
obliged to carry out any investigation or seek any confirmation from any other
person before paying a claim; and

 

(b)        deals in
documents only and will not be concerned with the legality of a claim or any
underlying transaction or any available set-off, counterclaim or other defence
of any person.

 

7.2.4           The
obligations of a Borrower under this Clause 7 
will not be affected by:

 

(a)        the
sufficiency, accuracy or genuineness of any claim or any other document; or

 

(b)        any
incapacity of, or limitation on the powers of, any person signing a claim or
other document.

 

7.3              Indemnities

 

7.3.1           Each
Borrower shall within five Business Days of demand indemnify the Issuing Bank
against any cost, loss or liability reasonably incurred by the Issuing Bank
(otherwise than by reason of the Issuing Bank’s gross negligence or wilful
misconduct) in acting as the Issuing Bank under any Letter of Credit requested
by (or on behalf of) that Borrower.

 

54

 

7.3.2           Each
Lender shall (according to its L/C Proportion) immediately on demand indemnify
the Issuing Bank against any cost, loss or liability incurred by the Issuing
Bank (otherwise than by reason of the Issuing Bank’s gross negligence or wilful
misconduct) in acting as the Issuing Bank under any Letter of Credit (unless
the Issuing Bank has been reimbursed by an Obligor pursuant to a Finance
Document).

 

7.3.3           The
Borrower which requested (or on behalf of which the Company requested) a Letter
of Credit shall within five Business Days of demand reimburse any Lender for
any payment it makes to the Issuing Bank under this Clause 7.3 in respect of
that Letter of Credit.

 

7.3.4           The
obligations of each Lender under this Clause 7 
are continuing obligations and will extend to the ultimate balance of
sums payable by that Lender in respect of any Letter of Credit, regardless of
any intermediate payment or discharge in whole or in part.

 

7.3.5           The
obligations of any Lender or Borrower under this clause will not be affected by
any act, omission, matter or thing which, but for this Clause 7.3, would
reduce, release or prejudice any of its obligations under this Clause (without
limitation and whether or not known to it or any other person) including:

 

(a)        any time,
waiver or consent granted to, or composition with, any Obligor, any beneficiary
under a Letter of Credit or any other person;

 

(b)        the
release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor or 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, any beneficiary under a Letter of Credit or other
person or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full
value of any security;

 

(d)        any
incapacity or lack of power, authority or legal personality of or dissolution
or change in the members or status of an Obligor, any beneficiary under a
Letter of Credit or any other person;

 

(e)        any
amendment (however fundamental) or replacement of a Finance Document, any
Letter of Credit or any other document or security;

 

55

 

(f)         any
unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document, any Letter of Credit or any other document or
security; or

 

(g)        any
insolvency or similar proceedings.

 

7.4              Rights of contribution

 

No Obligor will be entitled to any right of
contribution or indemnity from any Finance Party in respect of any payment it may make
under this Clause 7.

 

8.                OPTIONAL CURRENCIES

 

8.1              Selection
of currency

 

A Borrower (or the Company on its behalf)
shall select the currency of a Revolving Facility Utilisation in a Utilisation
Request.

 

8.2              Unavailability of a currency

 

If before the Specified Time on any Quotation
Day:

 

8.2.1           a
Lender notifies the Agent that the Optional Currency requested is not readily
available to it in the amount required; or

 

8.2.2           a
Lender notifies the Agent that compliance with its obligation to participate in
a Loan in the proposed Optional Currency would contravene a law or regulation
applicable to it,

 

the Agent will give notice to the relevant
Borrower or the Company to that effect by the Specified Time on that day. In
this event, any Lender that gives notice pursuant to this Clause 8.2 will be
required to participate in the Loan in the Base Currency (in an amount equal to
that Lender’s proportion of the Base Currency Amount, or in respect of a
Rollover Loan, an amount equal to that Lender’s proportion of the Base Currency
Amount of the Rollover Loan that is due to be made) and its participation will
be treated as a separate Loan denominated in the Base Currency during that
Interest Period.

 

8.3              Agent’s calculations

 

Each Lender’s participation in a Loan will be
determined in accordance with paragraph (b) of Clause 5.4 (Lenders’ participation).

 

56

 

9.                ANCILLARY FACILITIES

 

9.1              Type of Facility

 

An Ancillary Facility may be by way of a
forward foreign exchange contracts facility.

 

9.2              Availability

 

9.2.1           The Lender
shall provide an Ancillary Facility on a bilateral basis in place of all or part of
that Lender’s unutilised Revolving Facility Commitment (which shall (except for
the purpose of determining the Majority Lenders) be reduced by the amount of
the Ancillary Commitment under that Ancillary Facility).

 

9.2.2           The
Ancillary Facility shall be made available in accordance with the terms of this
Agreement and as otherwise as set out in the Ancillary Document. An Ancillary
Facility shall not be made available unless the Agent has received from the Company:

 

(a)        a copy of
the proposed Ancillary Document; and

 

(b)        any other
information which the Agent may reasonably request in connection with the
Ancillary Facility.

 

The Agent shall promptly notify the Company,
the Ancillary Lender and the other Lenders of the establishment of an Ancillary
Facility and the Parties acknowledge by the execution of this Agreement the
establishment of the Ancillary Facility referred to in Clause 9.1.

 

No amendment or waiver of a term of any
Ancillary Facility shall require the consent of any Finance Party other than
the relevant Ancillary Lender unless such amendment or waiver itself relates to
or gives rise to a matter which would require an amendment of or under this
Agreement (including, for the avoidance of doubt, under this Clause 9). In such
a case, the provisions of this Agreement with regard to amendments and waivers
will apply.

 

9.2.3           Subject
to compliance with Clause 9.2.2 above:

 

(a)        the
Lender concerned will become an Ancillary Lender; and

 

(b)        the
Ancillary Facility will be available,

 

with effect from the date agreed by the Company
and the Ancillary Lender.

 

57

 

9.3              Terms of Ancillary Facilities

 

9.3.1           Except
as provided below, the terms of any Ancillary Facility will be those agreed by
the Ancillary Lender and the Company.

 

9.3.2           However,
those terms:

 

(a)        must be
based upon normal commercial terms at that time (except as varied by this
Agreement);

 

(b)        may allow
only Borrowers to use the Ancillary Facility;

 

(c)        may not
allow the Ancillary Outstandings to exceed the Ancillary Commitment;

 

(d)        may not
allow the Ancillary Commitment of a Lender to exceed the Available Commitment
with respect to the Revolving Facility of that Lender; and

 

(e)        must
require that the Ancillary Commitment is reduced to nil, and that all Ancillary
Outstandings are repaid (or cash cover provided in respect of all the Ancillary
Outstandings) not later than the Termination Date for the Revolving Facility.

 

9.3.3           If
there is any inconsistency between any term of an Ancillary Facility and any
term of this Agreement, this Agreement shall prevail except for (i) Clause
37.3 (Day count convention) which
shall not prevail for the purposes of calculating fees, interest or commission
relating to an Ancillary Facility and (ii) an Ancillary Facility
comprising more than one account where the terms of the Ancillary Documents
shall prevail.

 

9.3.4           Interest,
commission and fees on Ancillary Facilities are dealt with in Clause 17.6 (Interest, commission and fees on Ancillary Facilities).

 

9.4              Repayment of Ancillary Facility

 

9.4.1           An
Ancillary Facility shall cease to be available on the Termination Date in
relation to the Revolving Facility or such earlier date on which its expiry
date occurs or on which it is cancelled in accordance with the terms of this
Agreement.

 

9.4.2           If an
Ancillary Facility expires in accordance with its terms the Ancillary
Commitment of the Ancillary Lender shall be reduced to zero (and its Revolving
Facility Commitment shall be increased accordingly).

 

58

 

9.4.3           No
Ancillary Lender may demand repayment or prepayment of any amounts or
demand cash cover for any liabilities made available or incurred by it under
its Ancillary Facility (except where the Ancillary Facility is provided on a
net limit basis to the extent required to bring any gross outstandings down to
the net limit) unless:

 

(a)        the Total
Commitments have been cancelled in full, or all outstanding Utilisations under
the Revolving Facility have become due and payable in accordance with the terms
of this Agreement, or the Agent has declared all outstanding Utilisations under
the Revolving Facility immediately due and payable, or the expiry date of the
Ancillary Facility occurs; or

 

(b)        it
becomes unlawful in any applicable jurisdiction for the Ancillary Lender to perform any
of its obligations as contemplated by this Agreement or to fund, issue or
maintain its participation in its Ancillary Facility; or

 

(c)        the
Ancillary Outstandings (if any) under that Ancillary Facility can be refinanced
by a Revolving Facility Utilisation under the Revolving Facility and the
Ancillary Lender gives sufficient notice to enable a Utilisation of the Revolving
Facility to be made to refinance those Ancillary Outstandings.

 

9.4.4           For
the purposes of determining whether or not the Ancillary Outstandings under an
Ancillary Facility mentioned in Clause 9.4.3(c) above can be refinanced by
a Utilisation of the Revolving Facility:

 

(a)        the
Revolving Facility Commitment of the Ancillary Lender will be increased by the
amount of its Ancillary Commitment; and

 

(b)        the
Utilisation may (so long as Clause 9.4.3(a) does not apply) be made
irrespective of whether a Default is outstanding or any other applicable
condition precedent is not satisfied (but only to the extent that the proceeds
are applied in refinancing those Ancillary Outstandings) and irrespective of
whether Clause 4.4 (Maximum number of
Utilisations) or Clause 5.2.1(c) (Completion of a Utilisation Request for Loans) applies.

 

9.4.5           On the
making of a Utilisation of the Revolving Facility to refinance Ancillary
Outstandings:

 

(a)        each
Lender will participate in that Utilisation in an amount (as determined by the
Agent) which will result as nearly as possible in the aggregate amount of its
participation in the Revolving Facility Utilisations then outstanding bearing
the

 

59

 

same proportion to the aggregate amount of
the Revolving Facility Utilisations then outstanding as its Revolving Facility
Commitment bears to the aggregate of the Revolving Facility Commitments; and

 

(b)        the
relevant Ancillary Facility shall be cancelled.

 

9.4.6           In
relation to an Ancillary Facility which comprises an overdraft facility where a
Designated Net Amount has been established, the Ancillary Lender providing that
Ancillary Facility shall only be obliged to take into account for the purposes
of calculating compliance with the Designated Net Amount those credit balances
which it is permitted to take into account by the then current law and
regulations in relation to its reporting of exposures to the Financial Services
Authority as netted for capital adequacy purposes.

 

9.5              Affiliates of Lenders as Ancillary Lenders

 

9.5.1           Subject
to the terms of this Agreement, an Affiliate of a Lender may become an
Ancillary Lender. In such case, the Lender and its Affiliate shall be treated
as a single Lender whose Revolving Facility Commitment is the amount set out
opposite the relevant Lender’s name in Part II of Schedule 1 (Original Parties).
For the purposes of calculating the Lender’s Available Commitment with respect
to the Revolving Facility, the Lender’s Commitment shall be reduced to the
extent of the aggregate of the Ancillary Commitments of its Affiliates.

 

9.5.2           If a
Lender assigns all of its rights and benefits or transfers all of its rights
and obligations to a New Lender (as defined in Clause 29 (Changes to the Lenders), its Affiliate
shall cease to have any obligations under this Agreement or any Ancillary
Document.

 

9.5.3           Where
this Agreement or any other Finance Document imposes an obligation on an
Ancillary Lender and the relevant Ancillary Lender is an Affiliate of a Lender
which is not a party to that document, the relevant Lender shall ensure that
the obligation is performed by its Affiliate.

 

 

60

 

SECTION 4

 

REPAYMENT,
PREPAYMENT AND CANCELLATION

 

10.              REPAYMENT

 

Each Borrower which has drawn a Revolving
Facility Loan shall repay that Loan on the last day of its Interest Period and
on the Termination Date whereupon the Revolving Facility will be cancelled.

 

11.              ILLEGALITY, VOLUNTARY PREPAYMENT AND
CANCELLATION

 

11.1            Illegality

 

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

 

11.1.1         that
Lender, shall promptly notify the Agent upon becoming aware of that event;

 

11.1.2         upon the
Agent notifying the Company, the Commitment of that Lender will be immediately
cancelled; and

 

11.1.3         each
Borrower shall repay that Lender’s participation in the Utilisations made to
that Borrower on the last day of the Interest Period for each Utilisation
occurring after the Agent has notified the Company or, if earlier, the date
specified by the Lender in the notice delivered to the Agent (being no earlier
than the last day of any applicable grace period permitted by law).

 

11.2            Illegality in relation to Issuing Bank

 

If it becomes unlawful for an Issuing Bank to
issue or leave outstanding any Letter of Credit, then:

 

11.2.1         that
Issuing Bank shall promptly notify the Agent upon becoming aware of that event;

 

11.2.2         upon the
Agent notifying the Company, the Issuing Bank shall not be obliged to issue any
Letter of Credit;

 

11.2.3         the Company
shall procure that the relevant Borrower shall use its best endeavours to
procure the release of each Letter of Credit issued by that Issuing Bank and
outstanding at such time; and

 

61

 

11.2.4         unless
any other Lender has agreed to be an Issuing Bank pursuant to the terms of this
Agreement, the Revolving Facility shall cease to be available for the issue of
Letters of Credit.

 

11.3            Voluntary cancellation

 

The Company may, if it gives the Agent not
less than five Business Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, cancel the whole or any part (being a minimum amount of
£500,000 and integral multiples of £500,000) of the Available Facility. Any
cancellation under this Clause 11.3 shall reduce the Commitments of the Lenders
rateably.

 

11.4            Voluntary prepayment of Revolving Facility Utilisations

 

A Borrower to which a Revolving Facility
Utilisation has been made may, if it or the Company gives the Agent not less
than five Business Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, prepay the whole or any part of a Utilisation (but if in
part, being an amount that reduces the Base Currency Amount of the Utilisation
by a minimum amount of £500,000 and integral multiples of £500,000.

 

11.5            Right of cancellation and repayment in relation to a single Lender
or Issuing Bank

 

11.5.1         If:

 

(a)        any sum
payable to any Lender by an Obligor is required to be increased under Clause 18.2.3
 (Tax
gross-up); or

 

(b)        any
Lender or Issuing Bank claims indemnification from the Company or an Obligor
under Clause 18.3 (Tax indemnity)
or Clause 19.1 (Increased costs),

 

the Company may, whilst the requirement or
claim for indemnification continues, give the Agent notice:

 

(i)         (if such
circumstances relate to a Lender) of cancellation of the Commitment of that
Lender and its intention to procure the repayment of that Lender and its
intention to procure the repayment of htat Lender’s participation in the
Utilisations; or

 

(ii)        (if such
circumstances relate to the Issuing Bank) of repayment of any outstanding
Letter of Credit issued by it and cancellation of its appointment as an Issuing
Bank under this Agreement in relation to any Letters of Credit to be issued in
the future.

 

62

 

11.5.2         On
receipt of a notice referred to in Clause 11.5.1 above in relation to a Lender,
the Commitment of that Lender shall immediately be reduced to zero.

 

11.5.3         On the
last day of each Interest Period which ends after the Company has given notice
under Clause  11.5.1 above in relation to
a Lender (or, if earlier, the date specified by the Company in that notice),
each Borrower to which a Utilisation is outstanding shall repay that Lender’s
participation in that Utilisation together with all interest and other amounts
accrued under the Finance Documents.

 

12.              MANDATORY PREPAYMENT

 

12.1            Exit

 

Upon the occurrence of:

 

12.1.1         any
Flotation;

 

12.1.2         a Change
of Control; or

 

12.1.3         a Sale,

 

the Facility will be cancelled and all outstanding
Utilisations and Ancillary Outstandings, together with accrued interest, and
all other amounts accrued under the Finance Documents, shall become immediately
due and payable.

 

13.              RESTRICTIONS

 

13.1            Notices of Cancellation or Prepayment

 

Any notice of cancellation or prepayment
given by any Party under Clause 11 (Illegality,
voluntary prepayment and cancellation) or Clause 12 (Mandatory prepayment) shall be irrevocable
and, unless a contrary indication appears in this Agreement, shall specify the
date or dates upon which the relevant cancellation or prepayment is to be made
and the amount of that cancellation or prepayment.

 

13.2            Interest and other amounts

 

Any prepayment under this Agreement shall be
made together with accrued interest on the amount prepaid and, subject to any
Break Costs and/or any fee payable pursuant to Clause 17.5 (Fees payable on prepayment/cancellation), shall be without
premium or penalty.

 

63

 

13.3            Reborrowing of Revolving Facility

 

Unless a contrary indication appears in this
Agreement, any part of the Revolving Facility which is prepaid may be
reborrowed in accordance with the terms of this Agreement.

 

13.4            Prepayment in accordance with Agreement

 

No Borrower shall repay or prepay all or any part of
the Utilisations or cancel all or any part of the Commitments except at
the times and in the manner expressly provided for in this Agreement.

 

13.5            No
reinstatement of Commitments

 

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

 

13.6            Agent’s receipt of Notices

 

If the Agent receives a notice under Clause 11
(Illegality, voluntary prepayment and
cancellation) or Clause 12 (Mandatory
prepayment) it shall promptly forward a copy of that notice to
either the Company or the affected Lender, as appropriate.

 

64

 

SECTION 5

 

COSTS
OF UTILISATION

 

14.              INTEREST

 

14.1            Calculation of interest

 

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

 

14.1.1         Margin;

 

14.1.2         LIBOR;
and

 

14.1.3         Mandatory
Cost, if any.

 

14.2            Payment of interest

 

The Borrower to which a Loan has been made
shall pay accrued interest on that Loan on the last day of each Interest Period
(and, if the Interest Period is longer than six Months, on the dates falling at
six Monthly intervals after the first day of the Interest Period).

 

14.3            Default interest

 

14.3.1         If an
Obligor fails to pay any amount payable by it under a Finance Document on its
due date, interest shall accrue on the overdue amount from the due date up to
the date of actual payment (both before and after judgment) at a rate which,
subject to Clause 14.3.2 below, is one per cent. higher than the rate which
would have been payable if the overdue amount had, during the period of
non-payment, constituted a Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Agent (acting
reasonably). Any interest accruing under this Clause 14.3 shall be immediately
payable by the Obligor on demand by the Agent.

 

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

 

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

 

65

 

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

 

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

 

14.4            Notification of rates of interest

 

The Agent shall promptly notify the Lenders
and the relevant Borrower (or the Company) of the determination of a rate of
interest under this Agreement.

 

15.              INTEREST PERIODS

 

15.1            Selection of Interest Periods and Terms

 

15.1.1         A
Borrower (or the Company on behalf of a Borrower) may select an Interest
Period for a Loan in the Utilisation Request for that Loan.

 

15.1.2         Subject
to this Clause 15, a Borrower (or the Company) may select an Interest
Period of one week, one, three or six Months or any other period agreed between
the Company and the Agent (acting on the instructions of all the Lenders).

 

15.1.3         An
Interest Period for a Loan shall not extend beyond the Termination Date applicable
to its Facility.

 

15.1.4         Each
Interest Period for a Loan shall start on the Utilisation Date.

 

15.1.5         A Loan
has one Interest Period only.

 

15.2            Non-Business Days

 

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

 

16.              CHANGES TO THE CALCULATION OF INTEREST

 

16.1            Absence of quotations

 

Subject to Clause 16.2 (Market disruption), if LIBOR is to be
determined by reference to the Reference Banks but a Reference Bank does not
supply a quotation by the Specified Time on

 

66

 

the Quotation Day, the applicable LIBOR shall
be determined on the basis of the quotations of the remaining Reference Banks.

 

16.2            Market disruption

 

16.2.1         If a
Market Disruption Event occurs in relation to a Loan for any Interest Period,
then the rate of interest on each Lender’s share of that Loan for the Interest
Period shall be the rate per annum which is the sum of:

 

(a)        the
Margin;

 

(b)        the rate
determined by applying the substitute basis (if any) agreed under Clause 16.3 (Alternative basis of interest or funding) or failing such
agreement, the rate certified to the Agent by that Lender as soon as
practicable and in any event before interest is due to be paid in respect of
that Interest Period, to be that which expresses as a percentage rate per annum
the cost to that Lender of funding its participation in that Loan from whatever
source it may reasonably select; and

 

(c)        the
Mandatory Cost, if any, applicable to that Lender’s participation in the Loan.

 

16.2.2         In this
Agreement “Market Disruption Event”
means:

 

(a)        at or
about noon on the Quotation Day for the relevant Interest Period the Screen
Rate is not available and none or only one of the Reference Banks supplies a
rate to the Agent to determine LIBOR for the relevant currency and Interest
Period; or

 

(b)        before
close of business in London on the Quotation Day for the relevant Interest
Period, the Agent receives notifications from a Lender or Lenders (whose
participations in a Loan exceed 66 2/3  per
cent. of that Loan) that the cost to them of obtaining matching deposits in the
Relevant Interbank Market would be in excess of LIBOR.

 

16.3            Alternative basis of interest or funding

 

16.3.1         If a
Market Disruption Event occurs and the Agent or the Company so requires, the
Agent and the Company shall enter into negotiations (for a period of not more
than thirty days) with a view to agreeing a substitute basis for determining
the rate of interest.

 

67

 

16.3.2         Any
alternative basis agreed pursuant to Clause 16.3.1 above shall, with the prior
consent of all the Lenders and the Company, be binding on all Parties.

 

16.4            Break Costs

 

16.4.1         Each
Borrower shall, within five Business Days of demand by a Finance Party and
receiving a certificate under Clause 16.4.2, pay to that Finance Party its
Break Costs attributable to all or any part of a Loan or Unpaid Sum being
paid by that Borrower on a day other than the last day of an Interest Period
for that Loan or Unpaid Sum.

 

16.4.2         Each
Lender shall, as soon as reasonably practicable after a demand by the Agent,
provide a certificate (containing calculation in reasonable detail) confirming
the amount of its Break Costs for any Interest Period in which they accrue.

 

17.              FEES

 

17.1            Commitment fee

 

17.1.1         The
Principal Borrower shall pay to the Agent (for the account of each Lender) a
fee in the Base Currency computed at the rate of zero point seven five (0.75%)
per cent. per annum on that Lender’s daily undrawn uncancelled Available
Commitment for the Availability Period applicable to the Revolving Facility PROVIDED
THAT for the purposes only of calculation the commitment fee payable to a
Lender with an Ancillary Commitment, its Available Commitment will not be
reduced by its Ancillary Commitment but rather by the amount of Ancillary
Outstandings from day to day as calculated by the Ancillary Lender and notified
to the Agent at the end of each Quarterly Period.

 

17.1.2         The
accrued commitment fee is payable on each Quarter Date during the relevant
Availability Period, on the last day of the relevant Availability Period and on
the cancelled amount of the relevant Lender’s Commitment at the time the
cancellation is effective.

 

17.2            Arrangement fee

 

The Principal Borrower shall pay to the
Arranger an arrangement fee in the amount and at the times agreed in a Fee
Letter.

 

68

 

17.3            Monitoring fee

 

The Principal Borrower shall pay to the Agent
(for its own account) a monitoring fee in the amount and at the times agreed in
a Fee Letter.

 

17.4            Fees payable in respect of Letters of Credit

 

17.4.1         Each
Borrower shall pay to the Agent (for the account of each Lender) a Letter of
Credit fee in the Base Currency (computed at the rate equal to the Margin
applicable to a Revolving Facility Loan) on the outstanding amount of each
Letter of Credit requested by it for the period from the issue of that Letter
of Credit until its Expiry Date. This fee shall be distributed according to
each Lender’s L/C Proportion of that Letter of Credit.

 

17.4.2         The
accrued Letter of Credit fee on a Letter of Credit shall be payable on each
Quarter Date (or, if sooner, the Expiry Date for that Letter of Credit)
starting on the first Quarter Date following the date of issue of that Letter
of Credit. The accrued Letter of Credit fee is also payable to the Agent on the
cancelled amount of any Lender’s Revolving Facility Commitment at the time the
cancellation is effective if that Commitment is cancelled in full and the
Letter of Credit is prepaid or repaid in full.

 

17.5            Fees
payable on Prepayment/Cancellation

 

In the event of a prepayment or cancellation
of the whole or any part of the Facility from the proceeds of or as a
result of:

 

17.5.1         replacement
borrowings being provided (including, without limitation, by way of the
purchase of the Facility) by a financial institution other than any Lender or
any of its Affiliates;

 

17.5.2         a Sale; or

 

17.5.3         a
Flotation,

 

a fee of one per cent (1%) of the amount so
prepaid or cancelled at any time during the period beginning on the first
Utilisation Date and ending on the date falling 12 Months thereafter shall be
payable to the Agent (for the account of the Lenders so prepaid/cancelled).

 

69

 

17.6            Interest, commission and fees on Ancillary Facilities

 

The rate and time of payment of interest,
commission, fees and any other remuneration (the “Ancillary Charges”) in respect of each Ancillary Facility
shall be as set out in the relevant Ancillary Document.

 

70

 

SECTION 6

 

ADDITIONAL
PAYMENT OBLIGATIONS

 

18.              TAX GROSS UP AND INDEMNITIES

 

18.1            Definitions

 

18.1.1         In this
Agreement:

 

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

 

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

 

(a)        a Lender:

 

(i)         which is
a bank (as defined for the purpose of section 349 of the Taxes Act) making
an advance under a Finance Document; or

 

(ii)        in
respect of an advance made under a Finance Document by a person that was a bank
(as defined for the purpose of section 349 of the Taxes Act) at the time
that that advance was made,

 

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

 

(b)        a Lender
which is:

 

(i)         a
company resident in the United Kingdom for United Kingdom tax purposes;

 

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

 

(iii)       a company
not so resident in the United Kingdom which carries on a trade in the United
Kingdom through a permanent establishment and which brings into account
interest payable in respect of that advance in

 

71

 

computing the chargeable profits (for the purposes
of section 11(2) of the Taxes Act) of that company; or

 

(iv)       a Treaty
Lender; or

 

(c)        a
building society (as defined for the purposes of section 477A of the Taxes
Act).

 

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

 

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

 

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

 

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

 

“Tax
Deduction” means a deduction or withholding for or on account of Tax
from a payment under a Finance Document.

 

“Tax
Payment” means either the increase in a payment made by an Obligor
to a Finance Party under Clause 18.2 (Tax
gross-up) or a payment under Clause 18.3 (Tax indemnity).

 

“Treaty
Lender” means a Lender which:

 

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

 

(b)        does not
carry on a business in the United Kingdom through a permanent establishment
with which that Lender’s participation in the Loan is effectively connected.

 

72

 

“Treaty
State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the United Kingdom which
makes provision for full exemption from tax imposed by the United Kingdom on
interest.

 

“UK
Non-Bank Lender” means where a Lender
becomes a Party after the day on which this Agreement is entered into, a Lender
which gives a Tax Confirmation in the Transfer Certificate which it executes on
becoming a Party.

 

Unless a contrary indication appears, in this
Clause 18 a reference to “determines”
or “determined” means a
determination made in the absolute discretion of the person making the
determination.

 

18.2            Tax gross-up

 

18.2.1         Each
Obligor shall make all payments to be made by it without any Tax Deduction,
unless a Tax Deduction is required by law.

 

18.2.2         The Company
shall promptly upon becoming aware that an Obligor must make a Tax Deduction
(or that there is any change in the rate or the basis of a Tax Deduction)
notify the Agent accordingly. Similarly, a Lender or Issuing Bank shall notify
the Agent on becoming so aware in respect of a payment payable to that Lender. If
the Agent receives such notification from a Lender or Issuing Bank it shall
notify the Company and that Obligor.

 

18.2.3         If a Tax
Deduction is required by law to be made by an Obligor, the amount of the
payment due from that Obligor shall be increased 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.

 

18.2.4         An
Obligor is not required to make an increased payment to a Lender under Clause 18.2.3
for a Tax Deduction in respect of tax imposed by the United Kingdom from a
payment of interest on a Loan, if on the date on which the payment falls due:

 

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

 

73

 

(b)

 

(i)         the
relevant Lender is a Qualifying Lender solely under sub-paragraph (b) of
the definition of Qualifying Lender;

 

(ii)        the Board
of HM Revenue and Customs has given (and not revoked) a direction (a “Direction”) under section 349C of the
Taxes Act (as that provision has effect on the date on which the relevant
Lender became a Party) which relates to that payment and that Lender has
received from that Obligor or the Company a certified copy of that Direction;
and

 

(iii)       the payment
could have been made to the Lender without any Tax Deduction in the absence of
that Direction; or

 

(c)        the
relevant Lender is a Qualifying Lender solely under sub-paragraph (b) of
the definition of Qualifying Lender and it has not, other than by reason of any
change after the date of this Agreement in (or in the interpretation,
administration, or application of) any law, or any published practice or
concession of any relevant taxing authority, given a Tax Confirmation to the
Company; or

 

(d)        the
relevant Lender is a Treaty Lender and the Obligor making the payment is able
to demonstrate that the payment could have been made to the Lender without the
Tax Deduction had that Lender complied with its obligations under paragraph 18.2.7  below.

 

18.2.5         If an
Obligor is required to make a Tax Deduction, that Obligor shall make that Tax
Deduction and any payment required in connection with that Tax Deduction within
the time allowed and in the minimum amount required by law.

 

18.2.6         Within
thirty days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the Obligor making that Tax Deduction shall
deliver to the Agent for the Finance Party entitled to the payment evidence
reasonably satisfactory to that Finance Party that the Tax Deduction has been
made or (as applicable) any appropriate payment paid to the relevant taxing
authority.

 

18.2.7         A Treaty
Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate in completing any procedural formalities necessary
for that Obligor to obtain authorisation to make that payment without a Tax
Deduction.

 

74

 

18.2.8         A UK
Non-Bank Lender which becomes a Party on the day on which this Agreement is entered
into gives a Tax Confirmation to the Company by entering into this Agreement.

 

18.2.9         A UK
Non-Bank Lender shall promptly notify the Company and the Agent if there is any
change in the position from that set out in the Tax Confirmation.

 

18.3            Tax indemnity

 

18.3.1         The Company
shall (within three Business Days of demand by the Agent) pay to a Protected
Party an amount equal to the loss, liability or cost which that Protected Party
determines 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.

 

18.3.2         Clause 18.3.1
above shall not apply:

 

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

 

(i)         under
the law of the jurisdiction in which that Finance Party is incorporated or, if
different, the jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes; or

 

(ii)        under the
law of the jurisdiction in which that Finance Party’s Facility Office is
located in respect of amounts received or receivable in that jurisdiction,

 

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

 

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

 

(i)         is
compensated for by an increased payment under Clause 18.2 (Tax gross-up); or

 

(ii)        would
have been compensated for by an increased payment under Clause 18.2 (Tax gross-up) but was not so compensated
solely because one of the exclusions in Clause 18.2.4 (Tax gross-up) applied.

 

18.3.3         A
Protected Party making, or intending to make a claim under Clause 18.3.1  shall promptly notify the Agent of the event
which will give, or has given, rise to the claim, following which the Agent
shall notify the Company.

 

75

 

18.3.4         A
Protected Party shall, on receiving a payment from an Obligor under this Clause
18.3, notify the Agent.

 

18.4            Tax Credit

 

If an Obligor makes a Tax Payment to a
Finance Party and:

 

18.4.1         a Tax
Credit is attributable either to an increased payment of which that Tax Payment
forms part or to that Tax Payment; and

 

18.4.2         that
Finance Party has obtained, utilised and retained that Tax Credit,

 

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

 

18.5            Stamp taxes

 

The Company shall pay and, within three
Business Days of demand, indemnify each Secured Party and Arranger against any
cost, loss or liability that Secured Party and the Arranger incurs in relation
to all stamp duty, registration and other similar Taxes payable in respect of
any Finance Document.

 

18.6            Value added tax

 

18.6.1         All
amounts set out, or 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 a supply for VAT purposes shall be deemed to be exclusive of
any VAT which is chargeable on such supply, and accordingly, subject to Clause 18.6.3
below, if VAT is chargeable on any supply made by any Finance Party to any
Party under a Finance Document, that Party shall pay to the Finance Party (in
addition to and at the same time as paying the consideration) an amount equal
to the amount of the VAT (and such Finance Party shall promptly provide an
appropriate VAT invoice to such Party).

 

18.6.2         If VAT
is chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and
any Party (the “Relevant Party”)
is required by the terms of any Finance Document to pay an amount equal to the
consideration for such supply to the Supplier (rather than being required to
reimburse the Recipient in respect of that consideration), such Party shall
also pay to the Supplier (in addition to and at the same time as paying such
amount) an amount equal to the amount of such VAT. The Recipient will promptly
pay to the

 

76

 

Relevant Party an amount equal to any credit
or repayment from the relevant tax authority which it reasonably determines
relates to the VAT chargeable on that supply.

 

18.6.3         Where a
Finance Document requires any Party to reimburse a Finance Party for any costs
or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all VAT incurred by the Finance Party in respect of the
costs or expenses to the extent that the Finance Party reasonably determines
that neither it nor any other member of any group of which it is a member for
VAT purposes is entitled to credit or repayment from the relevant tax authority
in respect of the VAT.

 

19.              INCREASED COSTS

 

19.1            Increased costs

 

19.1.1         Subject
to Clause 19.3 (Exceptions) the Company
shall, within three Business Days of a demand by the Agent and receipt of a
supporting certificate under Clause 19.2.2, pay for the account of a Finance
Party the amount of any Increased Costs reasonably incurred by that Finance
Party or any of its Affiliates as a result of (i) the introduction of or
any change in (or in the interpretation, administration or application of) any
law or regulation or (ii) compliance with any law or regulation made after
the date of this Agreement.

 

19.1.2         In this
Agreement “Increased Costs” means:

 

(a)        a
reduction in the rate of return from a Facility or on a Finance Party’s (or its
Affiliate’s) overall capital;

 

(b)        an
additional or increased cost; or

 

(c)        a reduction
of any amount due and payable under any Finance Document,

 

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

 

77

 

19.2            Increased cost claims

 

19.2.1         A
Finance Party intending to make a claim pursuant to Clause 19.1 (Increased Costs) shall notify the Agent of
the event giving rise to the claim, following which the Agent shall promptly
notify the Company.

 

19.2.2         Each
Finance Party shall, as soon as practicable after a demand by the Agent,
provide a certificate (containing calculations in reasonable detail) confirming
the amount of its Increased Costs.

 

19.3            Exceptions

 

19.3.1         Clause 19.1
(Increased Costs) does not apply
to the extent any Increased Cost is:

 

(a)        attributable
to a Tax Deduction required by law to be made by an Obligor;

 

(b)        compensated
for by Clause 18.3 (Tax indemnity)
(or would have been compensated for under Clause 18.3 (Tax indemnity) but was not so compensated
solely because any of the exclusions in Clause 18.3.2  (Tax
indemnity) applied);

 

(c)        compensated
for by the payment of the Mandatory Cost; or

 

(d)        attributable
to the negligence of or the wilful breach by the relevant Finance Party or its
Affiliates of any law or regulation.

 

19.3.2         In this
Clause 19.3 reference to a “Tax Deduction”
has the same meaning given to the term in Clause 18.1 (Definitions).

 

20.              OTHER INDEMNITIES

 

20.1            Currency indemnity

 

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

 

(a)        making or
filing a claim or proof against that Obligor; or

 

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

 

78

 

that Obligor shall as an independent
obligation, within three Business Days of demand, indemnify the Arranger and
each other Secured Party to whom that Sum is due against any cost, loss or
liability reasonably incurred as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from
the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.

 

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

 

20.2            Other indemnities

 

20.2.1         The Company
shall (or shall procure that an Obligor will), within five Business Days of
demand, indemnify the Arranger and each other Secured Party against any cost,
loss or liability properly incurred by it (absent negligence or wilful
misconduct) as a result of:

 

(a)        the
occurrence of any Event of Default;

 

(b)        a failure
by an Obligor to pay any amount due under a Finance Document on its due date,
including without limitation, any cost, loss or liability arising as a result
of Clause 33 (Sharing among the Finance
Parties);

 

(c)        funding,
or making arrangements to fund, its participation in a Utilisation requested by
a Borrower in a Utilisation Request but not made by reason of the operation of
any one or more of the provisions of this Agreement (other than by reason of
default or negligence by that Finance Party or if it becomes unlawful for a
Lender to perform its obligations under this Agreement);

 

(d)        issuing
or making arrangements to issue a Letter of Credit requested by the Company or
a Borrower in a Utilisation Request but not issued by reason of the operation
of any one or more of the provisions of this Agreement (other than by reason of
wilful default or negligence by that Finance Party or if it becomes unlawful
for an Issuing Bank to issue or leave outstanding any Letter of Credit); or

 

(e)        a
Utilisation (or part of a Utilisation) not being prepaid in accordance
with a notice of prepayment given by a Borrower or the Company.

 

79

 

20.3            Indemnity to the Agent

 

The Company shall promptly indemnify the
Agent against any cost, loss or liability incurred by the Agent (acting
reasonably and absent negligence or wilful misconduct) as a result of:

 

20.3.1         investigating
any event which it reasonably believes is an Event of Default;

 

20.3.2         entering
into or performing any foreign exchange contract for the purposes of Clause 34.9.2
 (Change
of currency); or

 

20.3.3         acting
or relying on any notice, request or instruction which it reasonably believes
to be and which appears on its face to be, genuine, correct and appropriately
authorised.

 

20.4            Indemnity to the Security Trustee

 

20.4.1         Each
Obligor shall promptly indemnify the Security Trustee and every Receiver and
Delegate against any cost, loss or liability properly incurred by any of them (absent
negligence or wilful misconduct) as a result of:

 

(a)        the
taking, holding, protection or enforcement of the Transaction Security,

 

(b)        the
exercise of any of the rights, powers, discretions and remedies vested in the
Security Trustee and each Receiver and Delegate by the Finance Documents or by
law; and

 

(c)        any
default by any Obligor in the performance of any of the obligations expressed
to be assumed by it in the Finance Documents.

 

20.4.2         The
Security Trustee may, after the relevant Transaction Security has become
enforceable in accordance with its terms, in priority to any payment to the
Secured Parties, indemnify itself out of the Charged Property in respect of,
and pay and retain, all sums necessary to give effect to the indemnity in this
Clause 20.4 and shall have a lien on the Transaction Security and the proceeds
of the enforcement of the Transaction Security for all monies payable to it.

 

21.              MITIGATION BY THE LENDERS

 

21.1            Mitigation

 

21.1.1         Each
Finance Party shall, in consultation with the Company, take all reasonable
steps to mitigate any circumstances which arise and which would result in any
amount becoming payable under or pursuant to, or cancelled pursuant to, any of
Clause 11.1

 

80

 

(Illegality)
(or, in respect of the Issuing Bank, Clause 11.2 (Illegality in relation to Issuing Bank)), Clause 18 (Tax gross-up and indemnities),
Clause 19 (Increased Costs),
 Clause 20 (Other
indemnities) or paragraph 3 of Schedule 4 (Mandatory Cost formula)  and to mitigate any cost, loss or liability
arising from such circumstances including (but not limited to) transferring its
rights and obligations under the Finance Documents to another Affiliate or
Facility Office.

 

21.1.2         Clause 21.1.1
does not in any way limit the obligations of any Obligor under the Finance
Documents.

 

21.2            Limitation of liability

 

21.2.1         The Company
shall indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause 21.1
(Mitigation).

 

21.2.2         A
Finance Party is not obliged to take any steps under Clause 21.1 (Mitigation) if, in the opinion of that
Finance Party (acting reasonably), to do so might be prejudicial to it.

 

22.              COSTS AND EXPENSES

 

22.1            Transaction expenses

 

The Principal Borrower (or the Company on its
behalf) shall promptly within five Business Days of demand or as otherwise
agreed pay the Agent, the Arranger, the Issuing Bank and the Security Trustee
the amount of all costs and expenses (including legal fees) reasonably incurred
by any of them (and, in the case of the Security Trustee, by any Receiver or
Delegate) in connection with the negotiation, preparation, printing, execution,
syndication and perfection of:

 

22.1.1         this
Agreement and any other documents referred to in this Agreement and the
Transaction Security; and

 

22.1.2         any
other Finance Documents executed after the date of this Agreement.

 

22.2            Amendment costs

 

If (a) an Obligor requests an amendment,
waiver or consent or (b) an amendment is required pursuant to Clause 34.9
(Change of currency), the Principal
Borrower (or the Company on its behalf) shall, within five Business Days of
demand, reimburse each of the Agent and the Security Trustee for the amount of
all costs and expenses (including legal fees) reasonably

 

81

 

incurred by the Agent and the Security
Trustee (and, in the case of the Security Trustee, by any Receiver or Delegate)
in responding to, evaluating, negotiating or complying with that request or
requirement.

 

22.3            Security
Trustee expenses

 

The Principal Borrower shall promptly on
demand pay to the Security Trustee the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with the
administration or release of any Transaction Security.

 

22.4            Enforcement and preservation costs

 

The Principal Borrower (or the Company on its
behalf) shall, within five Business Days of demand, pay to the Arranger and
each other Secured Party the amount of all costs and expenses (including legal
fees) properly incurred by it in connection with the enforcement of or the
preservation of any rights under any Finance Document and the Transaction
Security and any proceedings properly instituted by or against the Security
Trustee as a consequence of taking or holding the Transaction Security or
enforcing these rights.

 

82

 

SECTION 7

 

GUARANTEE

 

23.              GUARANTEE AND INDEMNITY

 

23.1            Guarantee and indemnity

 

In consideration for the Lenders making
available or continuing to make available the Facility, each Guarantor for
itself and its successors, irrevocably and unconditionally jointly and
severally:

 

23.1.1         guarantees
to each Finance Party punctual performance by each Borrower of all that
Borrower’s obligations under the Finance Documents;

 

23.1.2         undertakes
with each Finance Party that whenever a Borrower does not pay any amount when
due under or in connection with any Finance Document, that Guarantor shall within
5 Business Days of demand pay that amount as if it was the principal obligor;
and

 

23.1.3         indemnifies
each Finance Party within 5 Business Days of demand against any cost, loss or
liability suffered by that Finance Party if any obligation guaranteed by it is
or becomes unenforceable, invalid or illegal. The amount of the cost, loss or
liability shall be equal to the amount which that Finance Party would otherwise
have been entitled to recover.

 

23.2            Continuing Guarantee

 

This guarantee is a continuing guarantee and
will extend to the ultimate balance of sums payable by any Obligor under the
Finance Documents, regardless of any intermediate payment or discharge in whole
or in part and shall remain in full force and effect until all amounts which
may be or become payable by the Obligors under or in connection with the
Finance Document have been irrevocably paid in full.

 

23.3            Reinstatement

 

If any payment by an Obligor or any discharge
given by a Finance Party (whether in respect of the obligations of any Obligor
or any security for those obligations or otherwise) is avoided or reduced as a
result of insolvency or any similar event:

 

23.3.1         the
liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and

 

83

 

23.3.2         each
Finance Party shall be entitled to recover the value or amount of that security
or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

 

23.4            Waiver of defences

 

The obligations of each Guarantor under this
Clause 23 will not be affected by an act, omission, matter or thing which, but
for this Clause 23, would reduce, release or prejudice any of its obligations
under this Clause 23 (without limitation and whether or not known to it or any
Finance Party) including:

 

23.4.1         any
time, waiver or consent granted to, or composition with, any Obligor or other
person;

 

23.4.2         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;

 

23.4.3         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;

 

23.4.4         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;

 

23.4.5         any
amendment (however fundamental) or replacement of a Finance Document or any
other document or security;

 

23.4.6         any
unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or security; or

 

23.4.7         any
insolvency or similar proceedings.

 

23.5            Immediate recourse

 

The liability of each Guarantor shall be
joint and several. 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 23. This waiver
applies irrespective of any law or any provision of a Finance Document to the
contrary.

 

84

 

23.6            Appropriations

 

Until all amounts which may be or become
payable by the Obligors under or in connection with the Finance Documents have
been irrevocably paid in full, each Finance Party (or any trustee or agent on
its behalf) may:

 

23.6.1         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

 

23.6.2         hold in
an interest-bearing suspense account any moneys received from any Guarantor or
on account of any Guarantor’s liability under this Clause 23.

 

23.7            Deferral of Guarantors’ rights

 

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

 

23.7.1         to be
indemnified by an Obligor;

 

23.7.2         to claim
any contribution from any other guarantor of any Obligor’s obligations under
the Finance Documents; and/or

 

23.7.3         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.

 

23.8            Release of Guarantors’ right of contribution

 

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

 

23.8.1         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

 

85

 

contribution to any other Guarantor arising
by reason of the performance by any other Guarantor of its obligations under
the Finance Documents; and

 

23.8.2         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.

 

23.9            Additional security

 

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

 

23.10          Guarantee Limitations

 

This guarantee does not apply to any
liability to the extent that it would result in this guarantee constituting
unlawful financial assistance within the meaning of Section 151 of the
Companies Act 1985 or any equivalent and applicable provisions under the laws
of the jurisdiction of incorporation of the relevant Guarantor and, with
respect to any Additional Guarantor, is subject to any limitations set out in
the Accession Letter applicable to such Additional Guarantor.

 

86

 

SECTION 8

 

REPRESENTATIONS,
UNDERTAKINGS AND EVENTS OF DEFAULT

 

24.              REPRESENTATIONS

 

24.1            General

 

24.1.1         Each
Obligor makes the representations and warranties set out in this Clause 24
to each Finance Party in each case save as fairly disclosed in the Disclosure
Letter.

 

24.1.2         In
relation to the representations and warranties made on the date of this
Agreement and any other date on or before the Closing Date, it is assumed that
Completion has occurred and the Company has the knowledge of Senior Management.

 

24.2            Status

 

24.2.1         It and
each of its Subsidiaries is a limited liability corporation, duly incorporated
and validly existing under the law of its jurisdiction of incorporation.

 

24.2.2         It and
each of its Subsidiaries has the power to own its assets and carry on its
business as it is being conducted.

 

24.3            Binding obligations

 

Subject to the Legal Reservations:

 

24.3.1         the
obligations expressed to be assumed by it in each Transaction Document to which
it is a party are legal, valid, binding and enforceable obligations; and

 

24.3.2         (without
limiting the generality of Clause 24.3.1 above), each Transaction Security Document
to which it is a party creates the security interests which that Transaction
Security Document purports to create and those security interests are valid and
effective.

 

24.4            Non-conflict with other obligations

 

The entry into and performance by it of, and
the transactions contemplated by, the Transaction Documents and the granting of
the Transaction Security do not and will not conflict in any material respect
with:

 

24.4.1         any law
or regulation applicable to it;

 

87

 

24.4.2         the
constitutional documents of any member of the Group; or

 

24.4.3         any
agreement or instrument binding upon it or any member of the Group or any of
its or any member of the Group’s assets or constitute a default or termination
event (however described) under any such agreement or instrument.

 

24.5            Power and authority

 

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

 

24.5.2         No limit
on its powers will be exceeded as a result of the borrowing, grant of security
or giving of guarantees or indemnities contemplated by the Transaction Documents
to which it is a party.

 

24.6            Validity and admissibility in evidence

 

All Authorisations:

 

24.6.1         required
to enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Transaction Documents to which it is a party;

 

24.6.2         required
to make the Transaction Documents to which it is a party admissible in evidence
in its Relevant Jurisdictions, and

 

24.6.3         necessary
for the conduct of the business, trade and ordinary activities of members of
the Group,

 

have been obtained or effected and are in
full force and effect except for any Authorisation referred to in Clause 24.9 (No filing or stamp taxes) which
Authorisations will be promptly obtained or effected after the Closing Date.

 

24.7            Governing law and enforcement

 

Subject to the Legal Reservations:

 

24.7.1         the express
choice of governing law of each Finance Documents will be recognised and
enforced in its Relevant Jurisdictions; and

 

88

 

24.7.2         any judgment
obtained in the courts of the jurisdiction of the expressed governing law of
each Finance Document will be recognised and enforced in its Relevant
Jurisdictions.

 

24.8            Insolvency

 

No:

 

24.8.1         corporate
action, legal proceeding or other procedure or step described in Clause 28.1.7(a)
(Insolvency proceedings); or

 

24.8.2         creditors’
process described in Clause 28.1.8 (Creditors’
process),

 

has been taken or, to the knowledge of the Company,
threatened in relation to a member of the Group or the Parent; and none of the
circumstances described in Clause 28.1.6 (Insolvency)
applies to a member of the Group.

 

24.9            No filing or stamp taxes

 

Subject to the Legal Reservations, under the
laws of its Relevant Jurisdictions it is not necessary that the Finance Documents
be filed, recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration, notarial or similar Taxes or fees
be paid on or in relation to the Finance Documents or the transactions
contemplated by the Finance Documents except:

 

24.9.1         registration
of particulars of the Transaction Security at the Companies Registration Office
in England and Wales under Section 395 of The Companies Act 1985;

 

24.9.2         registration
of particulars of the relevant trade marks (if any) assigned or charged under
such Transaction Security Documents at the Trade Marks Registry at the Patent
Office in England and Wales;

 

24.9.3         registration
of the transfers of shares which are the subject of the Transaction Security
credited by the Transaction Security Documents;

 

24.9.4         registration
of certain Transaction Security (if any) at the Land Registry or Land Charges
Registry in England and Wales,

 

(or in each case the equivalent in
jurisdictions other than the United Kingdom) all of which registrations and
filings will be made promptly after the date of the relevant Finance Document
other than to the extent that the Agent’s legal advisers have agreed to make
such filing or registration.

 

89

 

24.10          Deduction of Tax

 

It is not required to make any deduction for
or on account of Tax from any payment it may make under any Finance Document.

 

24.11          No default

 

24.11.1       No Event
of Default and, on the date of this Agreement, no Default is continuing or is reasonably
likely to result from the making of any Utilisation or the entry into, the
performance of, or any transaction contemplated by, any Transaction Document.

 

24.11.2       No other
event or circumstance is outstanding which constitutes (or, with the expiry of
a grace period, the giving of notice, the making of any determination or any
combination of any of the foregoing, would constitute) an event of default or
termination event (however described) under any other agreement or instrument
which is binding on it or any of its Subsidiaries or to which its (or any of
its Subsidiaries’) assets are subject which has or is reasonably likely to have
a Material Adverse Effect.

 

24.12          No misleading information

 

24.12.1       Any
factual information provided by it and contained in the Information Package was
to the best of its knowledge and belief true and accurate in all material
respects as at the date of the relevant report or document containing the
information or (as the case may be) as at the date the information is expressed
to be given.

 

24.12.2       The
financial projections contained in the Base Case Model have been prepared on
the basis of recent historical information, are fair and based on reasonable
assumptions.

 

24.12.3       The
expressions of opinion or intention in writing provided by or on behalf of an
Obligor for the purposes of the Information Package were made after careful
consideration and were fair and based on reasonable grounds.

 

24.12.4       So far as
it is aware no event or circumstance has occurred or arisen and no information
has been omitted from the Information Package and no information has been given
or withheld that results in the information, opinions, intentions, forecasts or
projections contained in the Information Package being untrue or misleading in
any respect that could reasonably be expected to have a Material Adverse Effect.

 

24.12.5       All
material written information provided to a Finance Party by or on behalf of the
Investors, the Parent or the Company in connection with the Acquisition and/or
the Target Group on or before the date of this Agreement and not superseded
before that

 

90

 

date (whether or not contained in the
Information Package) is so far as it is aware accurate and not misleading in
any material respect and all projections provided to any Finance Party on or
before the date of this Agreement have been prepared in good faith on the basis
of assumptions which were reasonable at the time at which they were prepared
and supplied.

 

The representations and warranties made with
respect to the Reports are made by each Obligor in this Clause 24.12 only so
far as it is aware after making due and careful enquiries.

 

24.13          Original Financial Statements

 

24.13.1       Its
Original Financial Statements were prepared in accordance with the Accounting
Principles consistently applied.

 

24.13.2       Its
unaudited Original Financial Statements fairly represent its financial
condition and results of operations (consolidated in the case of Target’s
audited annual accounts) for the relevant period referred to in Clause 25.1 (Financial Statements).

 

24.13.3       Its
audited Original Financial Statements give a true and fair view of its
financial condition and results of operations (consolidated in the case of
Target’s audited annual accounts) during the relevant financial year.

 

24.13.4       There has
been no material adverse change in its assets, business or financial condition
(or the assets, business or consolidated financial condition of the Group, in
the case of the Company) since the date of the Original Financial Statements.

 

24.13.5       Its most
recent financial statements delivered pursuant to Clause 25.1 (Financial Statements):

 

(a)        have been
prepared in accordance with the Accounting Principles as applied to the
Original Financial Statements; and

 

(b)        give a
true and fair view of (if audited) or fairly present (if unaudited) its
consolidated financial condition as at the end of, and consolidated results of
operations for, the period to which they relate.

 

24.13.6       The
budgets and forecasts supplied under this Agreement were arrived at after
careful consideration and have been prepared in good faith on the basis of
recent historical information and on the basis of assumptions which were
reasonable as at the date they were prepared and supplied.

 

91

 

24.13.7       Since the
date of the most recent financial statements delivered pursuant to
Clause 25.1 (Financial Statements)
there has been no material adverse change in the business, assets or financial
condition of the Group.

 

24.14          No proceedings pending or threatened

 

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

 

24.15          No breach of laws

 

24.15.1       So far as
it is aware having made due and careful enquiry, it has not (and none of its
Subsidiaries has) breached any law or regulation which breach has or is
reasonably likely to have a Material Adverse Effect.

 

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

 

24.16          Environmental laws

 

24.16.1       Each
member of the Group is in compliance with Clause 27.3 (Environmental compliance) and to the best
of its knowledge and belief (having made due and careful enquiry) no
circumstances have occurred which would prevent such compliance in a manner or
to an extent which has or is reasonably likely to have a Material Adverse
Effect.

 

24.16.2       No
Environmental Claim has been commenced or (to the best of its knowledge and
belief (having made due and careful enquiry)) is threatened against any member
of the Group where that claim has or is reasonably likely, if adversely
determined, to have a Material Adverse Effect..

 

24.17          Taxation

 

24.17.1       It is not
(and none of its Subsidiaries is) materially overdue in the filing of any Tax
returns and it is not (and none of its Subsidiaries is) overdue in the payment
of any amount in respect of Tax.

 

92

 

24.17.2       No claims
or investigations are being, or to the best of its knowledge and belief (having
made due and careful enquiry) are reasonably likely to be, made or conducted
against it (or any of its Subsidiaries) with respect to Taxes such that a
liability of, or claim against, any member of the Group of £500,000 (or its
equivalent in any other currency) or more is reasonably likely to arise.

 

24.17.3       It is
resident for Tax purposes only in the jurisdiction of its incorporation.

 

24.18          Security and Financial Indebtedness

 

24.18.1       No
Security or Quasi-Security exists over all or any of the present or future
assets of any member of the Group or a Holding Company of the Company other than
as permitted by this Agreement.

 

24.18.2       No member
of the Group has any Financial Indebtedness outstanding other than as permitted
by this Agreement.

 

24.19          Ranking

 

Subject to the Legal Reservations and the
Intercreditor Agreement, the Transaction Security (including the guarantee and
indemnity pursuant to Clause 23 (Guarantee and Indemnity)) has or will have first ranking priority and it is not
subject to any prior ranking or pari passu
ranking Security.

 

24.20          Good title to assets

 

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

 

24.21          Legal and beneficial ownership

 

24.21.1       Subject to
Clause 24.21.3, it and each of its Subsidiaries is the sole legal and
beneficial owner of the respective assets over which it purports to grant
Security.

 

24.21.2       Subject to
24.21.3 all the Target Shares are or will be, immediately following Completion,
legally and beneficially owned by the Company free from any claims, third party
rights or competing interests other than Permitted Security permitted under
Clause 27.14 (Negative Pledge).

 

93

 

24.21.3       The Target
Shares are beneficially but not legally owned by the Company until those shares
are registered in the register of shareholders of Target, which registration
will be made as soon as reasonably practicable after the Closing Date.

 

24.22          Shares

 

The shares of any member of the Group which
are subject to the Transaction Security are fully paid and not subject to any
option to purchase or similar rights. The constitutional documents of companies
whose shares are subject to the Transaction Security do not and could not restrict
or inhibit any transfer of those shares on creation or enforcement of the
Transaction Security. Except as provided in the Partnership Agreement, there
are no agreements in force which provide for the issue or allotment of, or
grant any person the right to call for the issue or allotment of, any unit, share
or loan capital of any member of the Group or member of the Target Group
(including any option or right of pre-emption or conversion).

 

24.23          Intellectual Property

 

It and each of its Subsidiaries:

 

24.23.1       is the
sole legal and beneficial owner of or has licensed to it on reasonable commercial
terms all the Intellectual Property which is material in the context of its
business and which is required by it in order to carry on its business as it is
being conducted;

 

24.23.2       so far as
it is aware having made due and careful enquiry, does not (nor does any of its
Subsidiaries), in carrying on its businesses, infringe any Intellectual
Property of any third party in any respect which has or is reasonably likely to
have a Material Adverse Effect; and

 

24.23.3       has taken
all formal or procedural actions (including payment of fees) reasonably required
to maintain any Intellectual Property owned by it and which is material in the
context of its business and which is required by it in order to carry on its
business as it is being conducted and as contemplated in the Base Case Model.

 

24.24          Group Structure Chart

 

Assuming Completion has occurred, the Group
Structure Chart is true, complete and accurate and shows the following
information:

 

24.24.1       all
members of the Group, all members of the Parent Group including current name
and company registration number, its jurisdiction of incorporation and/or

 

94

 

establishment, a list of shareholders and indicating
whether a company is dormant or is not a company with limited liability;

 

24.24.2       all
minority interests in any member of the Group and any person in which any
member of the Group holds shares in its issued share capital or equivalent
ownership interest of such person; and

 

24.24.3       all
necessary intra-Group loans, transfers, share exchanges and other steps
resulting in the final Group structure are set out in the Group Structure Chart
and have been or will be taken in compliance with all relevant laws and
regulations and all requirements of relevant regulatory authorities.

 

24.25          Acquisition Documents, disclosures and other Documents

 

24.25.1       The
Acquisition Documents contain all the material terms of the Acquisition.

 

24.25.2       To the
best of its knowledge no representation or warranty (as qualified by the
Disclosure Letter) given by any party to the Acquisition Documents is untrue or
misleading in any material respect.

 

24.25.3       The Partnership
Agreement, the Service Contracts and the constitutional documents of the Company
and the Parent (as amended to the extent permitted under this Agreement and the
Intercreditor Agreement) contain all the material terms of all the agreements
and arrangements between Senior Management and the Investors and between Senior
Management, the Parent and any member of the Group.

 

24.26          Centre of main interests

 

For the purposes of The Council of the
European Union Regulation No. 1346/2000 on Insolvency Proceedings (the “Regulation”), its centre of main interest
(as that term is used in Article 3(1) of the Regulation) is situated in England
and Wales.

 

24.27          No adverse consequences

 

24.27.1       Subject to
the Legal Reservations, it is not necessary under the laws of its Relevant Jurisdictions:

 

(a)        in order
to enable any Finance Party to enforce its rights under any Finance Document;
or

 

(b)        by reason
of the execution of any Finance Document or the performance by it of its
obligations under any Finance Document,

 

95

 

that any Finance Party should be licensed,
qualified or otherwise entitled to carry on business in any of its Relevant
Jurisdictions; and

 

24.27.2       no Finance
Party is or will be deemed to be resident, domiciled or carrying on business in
its Relevant Jurisdictions by reason only of the execution, performance and/or
enforcement of any Finance Document.

 

24.28          Holding Companies

 

Except as may arise under or directly in
connection with the Transaction Documents and for Acquisition Costs, before the
Closing Date neither the Company nor its Parent has traded or incurred any
liabilities or commitments (actual or contingent, present or future) other than
in the case of the Company acting as a Holding Parent of the Company.

 

24.29          Times when representations made

 

24.29.1       All the
representations and warranties in this Clause 24 are made by each Original
Obligor on the date of this Agreement except for the representations and
warranties set out in Clause 24.12 (No
misleading information) which are deemed to be made by each Obligor,
with respect to the Information Package, on the date of this Agreement and on
the Closing Date.

 

24.29.2       The
Repeating Representations are deemed to be made by each Obligor on the date of
each Utilisation Request, on each Utilisation Date and on the first day of each
Interest Period.

 

24.29.3       All the
representations and warranties in this Clause 24 except Clause 24.12 (No misleading information), Clause 24.24 (Group Structure Chart), Clause 24.25 (Acquisition Documents, Disclosures and Other
Documents) and Clause 24.28 (Holding
Companies) are deemed to be made by each Additional Obligor in
respect of itself on the day on which it becomes (or it is proposed that it
becomes) an Additional Obligor.

 

24.29.4       Each representation
or warranty deemed to be made after the date of this Agreement shall be deemed
to be made by reference to the facts and circumstances existing at the date the
representation or warranty is deemed to be made.

 

25.              INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 25 remain in
force from the date of this Agreement for so long as any amount is outstanding
under the Finance Documents or any Commitment is in force.

 

96

 

In this Clause 25:

 

“Annual
Financial Statement” means the financial statements for a Financial
Year delivered pursuant to paragraph (a) of Clause 25.1 (Financial statements).

 

“Monthly
Financial Statement” means the financial statements delivered
pursuant to Clause 25.1.2  (Financial statements).

 

“Quarterly Financial Statement” means a Monthly Financial Statement in respect of a Quarterly Period
of the Company expires.

 

25.1            Financial statements

 

The Company shall supply to the Agent in
sufficient copies for all the Lenders:

 

25.1.1         as soon
as they are available, but in any event within 180 days after the end of each
of its Financial Years:

 

(a)        its
audited consolidated financial statements for that Financial Year;

 

(b)        the
audited financial statements (consolidated if appropriate) of each Obligor other
than any Obligor that is not required to prepare financial statements by its
law of incorporation (which shall deliver unaudited financial statements in the
format previously approved by the Agent) for that Financial Year; and

 

(c)        the
audited financial statements of any other Material Company for that Financial
Year (if requested by the Agent);

 

25.1.2         as soon
as they are available, but in any event within 45 days or, in the case of the
two Quarterly Periods immediately following Completion only, 60 days after the
end of each Quarterly Period, its financial statements on a consolidated basis and
financial statements for the Company and its Subsidiaries for that Quarterly
Period (to include cumulative management accounts for the Financial Year to
date),

 

provided that no financial statements (or
Compliance Certificates) shall be supplied under this Clause 25  until the end of the Quarterly Period ending
on 30 April  2006.

 

25.2            Provision and contents of Compliance Certificate

 

25.2.1         The
Company shall supply a Compliance Certificate to the Agent with each set of its
audited consolidated Annual Financial Statements and each set of its consolidated
Quarterly Financial Statements.

 

97

 

25.2.2         The
Compliance Certificate shall, amongst other things, set out (in reasonable
detail) computations as to compliance with Clause 26 (Financial Covenants).

 

25.2.3         Each
Compliance Certificate shall be signed by two directors of the Company and, if
required to be delivered with the consolidated Annual Financial Statements of
the Company, shall be reported on by the Company’s Auditors in the form agreed
by them in an engagement letter to be entered into between the Agent and the
Company’s Auditors such engagement letter being in agreed form at the date of
this Agreement.

 

25.3            Cashflow forecast

 

The Company shall supply to the Agent on a
semi-annual basis in sufficient copies for all the Lenders, as soon as it is
available, but in any event within 45 days of the end of a Quarterly Period
commencing with the second Quarterly Period following Completion, a cashflow forecast
in respect of the Group relating to the 12 month period commencing at the end
of the relevant Quarterly Period.

 

25.4            Requirements as to financial statements

 

25.4.1         The Company
shall procure that each set of Annual Financial Statements, Quarterly Financial
Statements and Monthly Financial Statements includes a balance sheet, profit
and loss account. In addition the Company shall procure that:

 

(a)        each set
of Annual Financial Statements shall be audited by the Auditors;  and

 

(b)        each set
of Quarterly Financial Statements is accompanied by a statement by the
directors of the Company commenting on the performance of the Group and of the
Company and its Subsidiaries for the Quarterly Period to which the financial
statements relate and the Financial Year to date and any material developments
or proposals affecting the Group, the Company and its Subsidiaries or its
business provided that no such statement commenting on performance and
proposals to which the financial statements relate requires to be delivered
until the Quarterly Period ending on 30 April 2006.

 

25.4.2         Each set
of financial statements delivered pursuant to Clause 25.1 (Financial statements):

 

(a)        shall be
certified by a director of the relevant company as giving a true and fair view
of (in the case of Annual Financial Statements for any Financial Year), or

 

98

 

fairly representing (in other cases), its
financial condition and operations as at the date as at which those financial
statements were drawn up and, in the case of the Annual Financial Statements,
shall be accompanied by any letter addressed to the management of the relevant
company by the Auditors and accompanying those Annual Financial Statements;

 

(b)        in the
case of consolidated financial statements of the Group, shall be accompanied by
a statement by the directors of the Company comparing actual performance for
the period to which the financial statements relate to:

 

(i)         the
projected performance for that period set out in the Budget; and

 

(ii)        the
actual performance for the corresponding period in the preceding Financial Year
of the Group save that in respect of the first Financial Year following the
Closing Date such comparison  (the “Initial Comparison”) shall be made in respect of the
financial statements of the Target Group against its financial statements for
its Financial Year falling immediately prior to the Closing Date with the
Initial Comparison being in a form as agreed between the Agent and the
Principal Borrower (each acting reasonably); and

 

(c)        shall be
prepared in accordance with the Accounting Principles, accounting practices and
financial reference periods consistent with those applied in the preparation of
the Original Financial Statements unless, in relation to any set of financial
statements, the Company notifies the Agent that there has been a change in the
Accounting Principles or the accounting practices and its Auditors (or, if
appropriate, the Auditors of the Obligor) deliver to the Agent:

 

(i)         a
description of any change necessary for those financial statements to reflect
the Accounting Principles or accounting practices upon which the Base Case
Model or, as the case may be, that Obligor’s Original Financial Statements were
prepared; and

 

(ii)        sufficient
information, in form and substance as may be reasonably required by the Agent,
to enable the Lenders to determine whether Clause 26 (Financial covenants) has been complied
with, and to make an accurate comparison between the financial position
indicated in those financial statements and the Base Case Model (in the case of
the

 

99

 

Company) or that Obligor’s Original Financial
Statements (in the case of an Obligor).

 

Any reference in this Agreement to any
financial statements shall be construed as a reference to those financial
statements as adjusted to reflect the basis upon which the Base Case Model or,
as the case may be, the Original Financial Statements were prepared.

 

25.4.3         If the
Agent wishes to discuss the financial position of any member of the Group with
the Auditors, the Agent may notify the Company, stating the questions or issues
which the Agent wishes to discuss with the Auditors. In this event, the Company
must, subject to the Agent agreeing (acting reasonably) an engagement letter
satisfactory to the Auditors, ensure that the Auditors are authorised (at the
expense of the Company):

 

(a)        to
discuss the financial position of each member of the Group with the Agent on
request from the Agent; and

 

(b)        to
disclose to the Agent for the Finance Parties any information which the Agent
may reasonably request.

 

25.5            Budget

 

25.5.1         The Company
shall:

 

(a)        supply to
the Agent in sufficient copies for all the Lenders, as soon as the same become
available but in any event no later than one Monthly Accounting Period before
the start of each of its Financial Years, an annual Budget for that Financial Year;
and

 

(b)        procure
that the Budget shall also identify the dates of the Quarterly Period for the
following Financial Year.

 

25.5.2         The Company
shall ensure that each Budget:

 

(a)        includes
a projected consolidated profit and loss, balance sheet and cashflow statement
for the Group;

 

(b)        is
prepared in accordance with the Accounting Principles and the accounting
practices and financial reference periods applied to financial statements under
Clause 25.1 (Financial statements);
and

 

(c)        has been
approved by the board of directors of the Company.

 

100

 

25.5.3         If any
Obligor updates or changes the Budget in any material respect,  it shall within not more than 10 Business Days
of the update or change being made deliver to the Agent, in sufficient copies
for each of the Lenders, such updated or changed Budget together with a written
explanation of the main changes in that Budget.

 

25.6            Presentations

 

If requested by the Agent, once in every
financial year, or more frequently if requested to do so by the Agent if the
Agent reasonably suspects a Default is continuing or has occurred or is
reasonably likely to occur, at least two directors of the Company (one of whom
shall be the chief financial officer) must give a presentation to the Finance
Parties about:

 

25.6.1         the
on-going business and financial performance of the Group; and

 

25.6.2         any
other matter which a Finance Party may reasonably request.

 

25.7            Information: miscellaneous

 

The Company shall supply to the Agent (in
sufficient copies for all the Lenders):

 

25.7.1         if
requested by the Agent at the same time as they are dispatched, copies of all material
notices and reports dispatched by the Company to its shareholders generally (or
any class of them) or dispatched by the Company or any Obligors to its
creditors generally (or any class of them);

 

25.7.2         promptly
upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are current, threatened or pending against any
member of the Group, and which are reasonably likely to be adversely determined
and, if adversely determined, would involve a liability, or a potential or
alleged liability, exceeding £500,000 (or its equivalent in other currencies);

 

25.7.3         promptly
upon becoming aware of the relevant claim, the details of any claim exceeding
£250,000 which is current, threatened or pending against the Vendor or any
other person in respect of the Acquisition Documents;

 

25.7.4         as soon
as reasonably practicable, on request, such further information regarding the
financial condition, assets and operations of the Group and/or any member of
the Group (including any requested amplification or explanation of any item in
the financial statements, budgets or other material provided by any Obligor under
this Agreement, any changes to Senior Management and an up to date copy of its

 

101

 

shareholders’ register (or equivalent in its
jurisdiction of incorporation)) as any Finance Party through the Agent may
reasonably request.

 

25.8            Notification of default

 

25.8.1         Each
Obligor shall notify the Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of its occurrence (unless that
Obligor is aware that a notification has already been provided by another
Obligor).

 

25.8.2         Promptly
upon a request by the Agent, the Company shall supply to the Agent a
certificate signed by two of its directors or senior officers on its behalf
certifying that so far as they are aware having made all due and diligent
enquiries no Default is continuing (or if a Default is continuing, specifying
the Default and the steps, if any, being taken to remedy it).

 

25.9            “Know your customer” checks

 

25.9.1         If:

 

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

 

(b)        any
change in the status of an Obligor or the composition of the shareholders of an
Obligor after the date of this Agreement; or

 

(c)        a
proposed assignment or transfer by a Lender of any of its rights and/or
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

 

obliges the Agent or any Lender (or, in the
case of Clauses 25.9.1(c) above, any prospective new Lender) to comply with “know
your customer” or similar identification procedures in circumstances where the
necessary information is not already available to it, each Obligor shall
promptly upon the request of the Agent or any Lender supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by
the Agent (for itself or on behalf of any Lender) or any Lender (for itself or,
in the case of the event described in 25.9.1(c) above, on behalf of any prospective
new Lender) in order for the Agent, such Lender or, in the case of the event
described in 25.9.1(c) above, any prospective new Lender to carry out and be
satisfied (acting reasonably) with the results of all necessary “know your
customer” or

 

102

 

other similar checks under all applicable
laws and regulations pursuant to the transactions contemplated in the Finance
Documents.

 

25.9.2         Each
Lender shall promptly upon the request of the Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by
the Agent (for itself) in order for the Agent to carry out and be satisfied
with the results of all necessary “know your customer” or other similar checks
under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.

 

25.9.3         The
Company shall, by not less than 10 Business Days’ prior written notice to the
Agent, notify the Agent (which shall promptly notify the Lenders) of its
intention to request that one of its Subsidiaries becomes an Additional Obligor
pursuant to Clause 30 (Changes to the
Obligors).

 

25.9.4         Following
the giving of any notice pursuant to Clause 25.9.3  above, if the accession of such Additional
Obligor obliges the Agent or any Lender to comply with “know your customer” or
similar identification procedures in circumstances where the necessary
information is not already available to it, the Company shall promptly upon the
request of the Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for
itself or on behalf of any Lender) or any Lender (for itself or on behalf of
any prospective new Lender) in order for the Agent or such Lender or any
prospective new Lender to carry out and be satisfied (acting reasonably) with
the results of all necessary “know your customer” or other similar checks under
all applicable laws and regulations pursuant to the accession of such
Subsidiary to this Agreement as an Additional Obligor.

 

25.10          Auditors

 

The Company shall procure that its auditors
are not changed other than to an Approved Auditor.

 

26.              FINANCIAL COVENANTS

 

26.1            Financial definitions

 

In this Clause 26:

 

	
  “Capital
  Expenditure”

  	
   

  	
  has the meaning given to that term by the
  Accounting Principles;

  
	
   

  	
   

  	
   

  
	
  “Cashflow”

  	
   

  	
  means, in respect of the Group in relation
  to any period, the

  

 

103

 

	
   

  	
   

  	
  aggregate of EBITDA for that period:

   

  (a)           plus
  any decrease, or minus any increase, in Net Working Capital during that
  period;

   

  (b)           plus
  any cash receipts by way of Extraordinary or Exceptional Items and minus any
  cash payments by way of Extraordinary or Exceptional Items, in each case,
  received or made during that period;

   

  (c)           minus
  any dividends paid in cash in respect of minority interests for that period;

   

  (d)           plus
  any dividends received from other fixed assets investments during that
  period;

   

  (e)           minus
  any payment in cash made to associated undertakings during that period;

  (f)            plus
  any increase or minus any decrease in provisions for liabilities and charges
  made in respect of that period;

   

  (g)           minus
  Capital Expenditure paid in respect of that period net of any disposal or
  insurance proceeds utilised to fund, in whole or in part, such Capital
  Expenditure;

   

  (h)           minus
  the aggregate of all corporation tax or other similar tax on profits of the
  Group paid during that period (net of any tax credits or rebates received
  during such period);

   

  (i)            plus,
  if the Company so requests by written notice to the Agent, any New Equity
  received by the Company within 45 days of the end of the relevant period
  provided that only one such notice may be served during the term of this
  Facility.

   

  In relation to this definition “Net Working Capital” means the aggregate of Current Assets
  (excluding all of cash at bank and cash in hand, all assets in relation to
  corporation tax or similar tax on

  

 

104

 

	
   

  	
   

  	
  profits of the Group and accrued interest
  receivable) less the aggregate of Current Liabilities (excluding monies due
  in relation to the Facility and other Financial Indebtedness and liabilities
  in relation to corporation tax or similar tax on profits of the Group,
  Extraordinary Items and dividends payable); “Current
  Assets” means, in relation to the Group, the aggregate value of
  its assets which are treated as current assets in accordance with the
  Accounting Principles; and “Current Liabilities”
  means, in relation to the Group, the aggregate value of its liabilities which
  are treated as current liabilities in accordance with the Accounting
  Principles);

  
	
   

  	
   

  	
   

  
	
  “Current
  Assets”

  	
   

  	
  means, in relation to any period, the
  aggregate value of all Trade Debtors and all Stock of each member of the
  Group;

  
	
   

  	
   

  	
   

  
	
  “EBITDA”

  	
   

  	
  means, in
  relation to any period, the consolidated profit of the Group for that period
  (excluding, for the avoidance of doubt, all Extraordinary and Exceptional
  Items) before deducting all Tax and all interest, periodic fees and other
  financing charges (including the interest element of finance lease payments)
  and adding back (to the extent already deducted:

   

  (a)           depreciation
  charged to the Group’s profit and loss account;

  (b)           any
  amounts of goodwill and any other intangible asset amortised or written off
  during such period or charged to the Group’s profit and loss account during
  such period;

   

  (c)           any
  amount amortised against, or charged to, the Group’s profit and loss account
  during such period in respect of Acquisition Costs, but excluding:

   

  (i)            profit
  attributable to minority interests;

  (ii)           any
  profit or loss arising on the disposal of fixed assets;

   

  (iii)          amounts
  written off the value of investments;

  

 

105

 

	
   

  	
   

  	
  and

   

  (iv)          income
  from participating interests in associated undertakings and income from any
  other fixed asset investment other than where received in cash;

  (d)

   

  (i)            customary
  fees and expenses of the Group payable in connection with:

  A.            the
  issuance and maintenance of the Floating Rate Notes and this Agreement

  B.            any
  Equity Offering;

  C.            the
  incurrence, maintenance, termination or repayment of Indebtedness permitted
  by the covenant described under “Certain Covenants-Limitation on Incurrence
  of Additional Indebtedness” including Indebtedness constituting “Permitted
  Indebtedness” (as defined in the Floating Rate Note Instrument) of the
  Floating Rate Note Instrument;

  D.            the
  Acquisition and any acquisition permitted under this Agreement; and

  E.             compliance
  with the U.S. federal securities laws and the Sarbanes-Oxley Act of 2002 for
  a period of 12 months following the date of original issuance of the Floating
  Rate Notes;

   

  (ii)           extraordinary
  bonus payments payable to the officers and employees of Target pursuant to
  the Phantom Share Scheme (as defined in the Acquisition Agreement) in respect
  of the

  

 

106

 

	
   

  	
   

  	
  Target’s Financial Year 2006; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)          bonuses and fees payable
  to existing stockholders, directors, officers and employees of the Company,
  lenders, financial advisors and other Persons in connection with the
  Acquisition on or substantially contemporaneous with the Closing Date;

   

  (e)           the Working Capital
  Adjustment;

  
	
   

  	
   

  	
   

  
	
  “Equity Offering”

  	
   

  	
  means any private or public offering or
  placing of Capital Stock (as defined in the Floating Rate Note Instrument) of
  the Company or any holding company of the Company to any Person (other than
  issuances upon exercise of options by employees of any Holding Company, the
  Company and any of its Subsidiaries;

  
	
   

  	
   

  	
   

  
	
  “Extraordinary Items”

  	
   

  	
  has
  the meaning given to that term in FRS3, but excluding those items listed in
  paragraph 20 of FRS3;

  
	
   

  	
   

  	
   

  
	
  “Exceptional Items”

  	
   

  	
  has
  the meaning given to that term in FRS3, but excluding those items listed in
  paragraph 20 of FRS3;

  
	
   

  	
   

  	
   

  
	
  “Financial Year”

  	
   

  	
  means,
  in respect of a member of the Group, an “accounting reference period” as such
  term is defined in Section 224 of the Companies Act 1985;

  
	
   

  	
   

  	
   

  
	
  “Quarterly Period”

  	
   

  	
  means:

   

  (a)           the period commencing on
  the first day of the first Monthly Accounting Period in each Financial Year
  and ending on the last day of the third Monthly Accounting Period in each
  Financial Year (“Q1”);

   

  (b)           the period commencing on
  the first day of the fourth Monthly Accounting Period in each Financial Year
  and ending on the last day of the sixth Monthly Accounting Period in each
  Financial Year (“Q2”);

   

  (c)           the period commencing on
  the first day of the seventh

  

 

107

 

	
   

  	
   

  	
  Monthly Accounting Period in each Financial
  Year and ending on the last day of the ninth Monthly Accounting Period in
  each Financial Year (“Q3”); and

   

  (d)           the period commencing on
  the first day of the tenth Monthly Accounting Period in each Financial year
  and ending on the last day of the thirteenth Monthly Accounting Period in
  each Financial Year (“Q4”);

  
	
   

  	
   

  	
   

  
	
  “Stock”

  	
   

  	
  means,
  at any time, all raw materials, finished goods, materials and supplies of
  every nature and description and all other items properly included as “stock”
  of each member of the Group (less provision for obsolete or slow moving
  stock) in accordance with Accounting Principles (but excluding any of the
  above held in trust or subject to any reservation of title claim).

  
	
   

  	
   

  	
   

  
	
  “Total Debt Service”

  	
   

  	
  means
  in respect of any period, the ratio of Total Net Debt as at the end of such
  period to EBITDA for such period;

  
	
   

  	
   

  	
   

  
	
  “Total Net Debt”

  	
   

  	
  means
  the aggregate of:

   

  (a)               that part of the
  Financial Indebtedness of the Group which relates to obligations for the
  payment or repayment of money in respect of principal incurred in respect of
  (i) monies borrowed or raised, (ii) any bond, note, loan stock,
  debenture or similar instrument or (iii) any acceptance credit, bill
  discounting, note purchase, factoring or documentary credit facility (including,
  for the avoidance of doubt, any Financial Indebtedness under this Agreement);
  and

   

  (b)              the capital element of
  all rentals or, as the case may be, other payments payable under any finance
  lease entered into by any member of the Group,

   

  less
  the aggregate amount of Cash and Cash Equivalent Investments held by members
  of the Group;

  
	
   

  	
   

  	
   

  
	
  “Total Net Debt Costs”

  	
   

  	
  means,
  in relation to any period, the aggregate (without double counting) of all
  interest, commissions, periodic fees and other

  

 

108

 

	
   

  	
   

  	
  financing
  charges payable in cash by the members of the Group during that period
  (including the interest element payable under any finance lease) less any
  interest receivable in respect of cash balances, less any sums receivable or
  plus any sums payable by the Borrowers under any interest rate protection
  agreement of whatever description during that period, and for the avoidance
  of doubt excluding any fees and commission payable pursuant to Clauses 17.2 (Arrangement Fee) and 17.3 (Monitoring
  fees);

  
	
   

  	
   

  	
   

  
	
  “Trade Debtors”

  	
   

  	
  means, at any time, all debts due to each
  member of the Group in the ordinary course of business outstanding for not
  more than 90 days from date of invoice and which are not bad or doubtful but
  excluding:-

   

  (a)               any debt owed by
  another member of the Group;

   

  (b)              any debt owed by any
  person who is also a creditor of a Group to the extent of the amount owed by
  that member of the member of the Group to that creditor;

   

  (c)               any debt which has
  been assigned or charged to or is held in trust for any third party or is
  subject to any factoring or invoice discounting or similar arrangement;

  
	
   

  	
   

  	
   

  
	
  “Working Capital Adjustment”

  	
   

  	
  means
  the adjustment to Working Capital (as such term is defined in the Acquisition
  Agreement) in accordance with the Fifth Schedule to the Acquisition
  Agreement.

  

 

26.2            Financial condition

 

The Company shall ensure that:

 

26.2.1         Total Cash Cover: the ratio of Cashflow
to Total Net Debt Costs in respect of any Financial Year tested on the last day
of each Financial Year commencing with the financial year ending 31 January
2007 shall not be less than 1:1;

 

26.2.2         Total Interest Cover:  the ratio of EBITDA to Total Net Debt Costs
in respect of:-

 

(a)        the
Quarterly Period commencing on 31 July 2006, 
shall be not less than 1.5:1; and

 

(b)        any
Quarterly Period thereafter, shall not be less than 1.75:1.

 

109

 

26.2.3         Asset Cover:  the Current
Assets of the Group shall not, at any time, be less than 200% of the aggregate
of the Base Currency Amount outstanding under the Revolving Facility as tested
on each Quarter Date commencing on 30 April 2006.

 

26.3            Financial
testing

 

26.3.1         The
calculation of the financial covenants in clauses 26.2.1 and 26.2.2 shall be by
reference to the immediately preceding 12 month period except in respect of the
calculations to be made prior to the fifth Quarter Date following the Closing
Date which shall be made by reference to the period from the end of the first
whole Quarterly Period following the Closing Date to the relevant test date.

 

26.3.2         The
financial covenants set out in Clause 26.2 (Financial
condition) shall be calculated in accordance with the Accounting
Principles and tested by reference to each of the financial statements and/or
each Compliance Certificate delivered pursuant to Clause 25.2 (Provision and contents of Compliance Certificate).

 

27.              GENERAL UNDERTAKINGS

 

The undertakings in this Clause 27 remain in
force from the date of this Agreement for so long as any amount is outstanding
under the Finance Documents or any Commitment is in force.

 

Authorisations
and compliance with laws

 

27.1            Authorisations

 

Each Obligor shall promptly obtain, comply
with and do all that is necessary to maintain in full force and effect and, if
requested by the Agent, supply certified copies to the Agent of any
Authorisation required under any law or regulation of a Relevant Jurisdiction
to:

 

27.1.1         enable
it to perform its obligations under the Finance Documents and the Acquisition
Documents;

 

27.1.2         ensure
the legality, validity, enforceability or admissibility in evidence of any
Finance Document or Acquisition Document; and

 

27.1.3         carry on
its business where failure to do so has or is reasonably likely to have a
Material Adverse Effect.

 

110

 

27.2            Compliance with laws

 

Each Obligor shall (and the Company shall
ensure that each member of the Group will) comply in all respects with all laws
to which it may be subject, if failure so to comply has or is reasonably likely
to have a Material Adverse Effect.

 

27.3            Environmental compliance

 

Each Obligor shall (and the Company shall
ensure that each member of the Group will):

 

27.3.1         comply
with all Environmental Law;

 

27.3.2         obtain,
maintain and ensure compliance with all requisite Environmental Permits;

 

27.3.3         implement
procedures to monitor compliance with and to prevent liability under any
Environmental Law affecting the conduct of the business,

 

where failure to do so has or is reasonably
likely to have a Material Adverse Effect.

 

27.4            Environmental claims

 

Each Obligor shall (through the Company),
promptly upon becoming aware of the same, inform the Agent in writing of:

 

27.4.1         any
Environmental Claim against any member of the Group which is current, pending
or threatened; and

 

27.4.2         any
facts or circumstances which are reasonably likely to result in any
Environmental Claim being commenced or threatened against any member of the
Group,

 

where the claim, if determined against that
member of the Group, has or is reasonably likely to have a Material Adverse
Effect.

 

27.5            Taxation

 

27.5.1         Each
Obligor shall (and the Company shall ensure that each member of the Group will)
pay and discharge all Taxes imposed upon it or its assets within the time
period allowed without incurring penalties unless and only to the extent that:

 

(a)        such
payment is being contested in good faith;

 

111

 

(b)        adequate
reserves are being maintained for those Taxes and the costs required to contest
them which have been disclosed in its latest financial statements delivered to
the Agent under Clause 25.1 (Financial
statements); and

 

(c)        such
payment can be lawfully withheld and failure to pay those Taxes does not have
or is not reasonably likely to have a Material Adverse Effect.

 

27.5.2         No
member of the Group may change its residence for Tax purposes.

 

Restrictions on
business focus

 

27.6            Merger

 

No Obligor shall (and the Company shall
ensure that no other member of the Group will) enter into any amalgamation,
demerger, merger, consolidation or corporate reconstruction other than a
Permitted Transaction.

 

27.7            Change of business

 

The Company shall procure that no substantial
change is made to the general nature of the business of the Company, the
Obligors or the Group taken as a whole from that carried on by the Target Group
at the date of this Agreement.

 

27.8            Acquisitions

 

27.8.1         Except
as permitted under Clause 27.8.2 below, no Obligor shall (and the Company shall
ensure that no other member of the Group will):

 

(a)        acquire a
company or any shares or securities or a business or undertaking (or, in each
case, any interest in any of them); or

 

(b)        incorporate
a company.

 

27.8.2         Clause 27.8.1
does not apply to an acquisition of a company, of shares, securities or a
business or undertaking (or, in each case, any interest in any of them) or the
incorporation of a company which is:

 

(a)        a
Permitted Acquisition; or

 

(b)        a
Permitted Transaction.

 

112

 

27.9            Joint ventures

 

27.9.1         Except
as permitted under Clause 27.9.2 below, no Obligor shall (and the Company shall
ensure that no member of the Group will):

 

(a)        enter
into, invest in or acquire (or agree to acquire) any shares, stocks, securities
or other interest in any Joint Venture; or

 

(b)        transfer
any assets or lend to or guarantee or give an indemnity for or give Security
for the obligations of a Joint Venture or maintain the solvency of or provide
working capital to any Joint Venture (or agree to do any of the foregoing).

 

27.9.2         Clause 27.9.1
above does not apply to any acquisition (or agreement to acquire) any interest
in a Joint Venture or transfer of assets (or agreement to transfer assets) to a
Joint Venture or loan made to or guarantee given in respect of the obligations
of a Joint Venture if such transaction is a Permitted Acquisition, a Permitted
Disposal or a Permitted Joint Venture.

 

27.10          Holding Companies and Funding Vehicles

 

27.10.1       The
Company shall not trade, carry on any business, own any assets or incur any
liabilities except for:

 

(a)        the
provision of administrative services (excluding treasury services) to other
members of the Group of a type customarily provided by a holding company to its
Subsidiaries;

 

(b)        ownership
of shares in its Subsidiaries, intra-Group debit balances and credit balances
in bank accounts, cash and Cash Equivalent Investments but only if those
shares, credit balances, cash and Cash Equivalent Investments are subject to
the Transaction Security;

 

(c)        any liabilities
under the Transaction Documents to which it is a party and professional fees
and administration costs in the ordinary course of business as a holding
company.

 

27.10.2       Pipe
Acquisition Finance PLC shall not trade, carry on any business, own any assets
or incur any liabilities except of the purpose of transfer of funds to the
Company pursuant to the offering of the Floating Rate Notes in the United
Kingdom and the Company shall undertake to wind up such company as soon as
reasonably practicable following the Exchange Offer.

 

113

 

Restrictions on
dealing with assets and Security

 

27.11          Preservation of assets

 

Each Obligor shall (and the Company shall
ensure that each member of the Group will) so far as it is commercially reasonable
maintain in good working order and condition (ordinary wear and tear excepted)
all of its assets necessary in the conduct of its business.

 

27.12          Pari passu ranking

 

Each Obligor shall ensure that at all times
any unsecured and unsubordinated claims of a Finance Party against it under the
Finance Documents rank at least pari passu
with the claims of all its other unsecured and unsubordinated creditors except
those creditors whose claims are mandatorily preferred by laws of general
application to companies.

 

27.13          Acquisition Documents

 

27.13.1       The
Company shall promptly pay all amounts payable to the Vendors under the
Acquisition Documents as and when they become due (except to the extent that
any such amounts are being contested in good faith by a member of the Group and
where adequate reserves are set aside for any such payment).

 

27.13.2       The
Company shall (and the Company shall procure that each relevant member of the
Group) take all reasonable and practical steps to preserve and enforce its
rights (or the rights of any other member of the Group) and pursue any claims
and remedies arising under any Acquisition Documents having regard to the
commerciality thereof.

 

27.14          Negative pledge

 

In this Clause 27.14, “Quasi-Security” means
a transaction described in Clause 27.14.2.

 

Except as permitted under Clause 27.14.3:

 

27.14.1       no Obligor
shall (and the Company shall ensure that no other member of the Group will)
create or permit to subsist any Security over any of its assets.

 

27.14.2       no Obligor
shall (and the Company shall ensure that no other member of the Group will):

 

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

 

114

 

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

 

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

 

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

 

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

 

27.14.3       Clause 27.14.1
and 27.14.2  do not apply to any Security
or (as the case may be) Quasi-Security, which is:

 

(a)        Permitted
Security; or

 

(b)        a
Permitted Transaction.

 

27.15          Disposals

 

27.15.1       Except as
permitted under Clause 27.15.2, no Obligor shall (and the Company shall ensure
that no member of the Group will) enter into a single transaction or a series
of transactions (whether related or not) and whether voluntary or involuntary
to sell, lease, transfer or otherwise dispose of any asset.

 

27.15.2       Clause 27.15.1  above does not apply to any sale, lease,
transfer or other disposal which is:

 

(a)        a
Permitted Disposal; or

 

(b)        a
Permitted Transaction.

 

27.16          Arm’s length basis

 

27.16.1       Except as
permitted by Clause 27.16.2, no Obligor shall (and the Company shall ensure no
member of the Group will) enter into any transaction with any person except on
arm’s length terms and for full market value.

 

27.16.2       The
following transactions shall not be a breach of this Clause 27.16:

 

(a)        intra-Group
loans permitted under Clause 27.17 (Loans or
credit);

 

115

 

(b)        fees,
costs and expenses payable under the Transaction Documents in the amounts set
out in the Transaction Documents delivered to the Agent under Clause 4.1 (Initial conditions precedent) or agreed by
the Agent; and

 

(c)        any
Permitted Transactions.

 

Restrictions on
movement of cash - cash out

 

27.17          Loans or credit

 

27.17.1       Except as
permitted under Clause  27.17.2 below, no
Obligor shall (and the Company shall ensure that no member of the Group will)
be a creditor in respect of any Financial Indebtedness.

 

27.17.2       Clause 27.17.1
above does not apply to:

 

(a)        a
Permitted Loan; or

 

(b)        a
Permitted Transaction.

 

27.18          No Guarantees or indemnities

 

27.18.1       Except as provided
under Clause 23 (Guarantee and Indemnity) or permitted under Clause 27.18.2, no Obligor shall (and the Company
shall ensure that no member of the Group will) incur or allow to remain
outstanding any guarantee in respect of any obligation of any person.

 

27.18.2       Clause 27.18.1
does not apply to a guarantee which is:

 

(a)        a
Permitted Guarantee; or

 

(b)        a
Permitted Transaction.

 

27.19          Dividends and share redemption

 

27.19.1       Except as
permitted by Clause 27.19.2 the Company shall ensure that no member of the
Group will:

 

(a)        declare,
make or pay any dividend, charge, fee or other distribution (or interest on any
unpaid dividend, charge, fee or other distribution) (whether in cash or in
kind) on or in respect of its share capital (or any class of its share
capital);

 

(b)        repay or
distribute any dividend or share premium reserve;

 

116

 

(c)        pay or
allow any member of the Group to pay any management, advisory or other fee to
or to the order of any of the shareholders of the Company; or

 

(d)        redeem,
repurchase, defease, retire or repay any of its share capital or resolve to do
so.

 

27.19.2       Clause 27.19.1
does not apply to a Permitted Distribution.

 

27.20          Investment
Documents

 

The Company may not (and will ensure that no
other member of the Group will):

 

27.20.1       repay or
prepay any principal amount (or capitalised interest) outstanding under the
Investment Documents;

 

27.20.2       pay any
interest, fee or charge accrued or due under the Investment Documents;

 

27.20.3       purchase,
redeem, defease or discharge any of the amounts outstanding under the
Investment Documents.

 

27.21          Subordinated Debt

 

27.21.1       Except as
permitted under Clause 27.21.2, no Obligor shall (and the Company shall ensure
that no member of the Group will):

 

(a)        repay or
prepay any principal amount (or capitalised interest) outstanding under the
Subordinated Debt;

 

(b)        pay any
interest or other amounts payable in connection with the Subordinated Debt; or

 

(c)        purchase,
redeem, defease or discharge any amount outstanding with respect of the
Subordinated Debt.

 

27.21.2       Clause 27.21.1
does not apply to a Permitted Payment.

 

27.22          Financial Indebtedness

 

27.22.1       Except as
permitted under Clause 27.22.2, no Obligor shall (and the Company shall ensure
that no member of the Group will) incur or allow to remain outstanding any
Financial Indebtedness.

 

27.22.2       Clause 27.22.1
above does not apply to Financial Indebtedness which is:

 

117

 

(a)        Permitted
Financial Indebtedness; or

 

(b)        a
Permitted Transaction.

 

27.23          Share capital

 

No Obligor shall (and the Company shall
ensure no member of the Group will) issue any shares except pursuant to a Permitted
Share Issue or Permitted Transaction.

 

Miscellaneous

 

27.24          Insurance

 

27.24.1       Each
Obligor shall (and the Company shall ensure that each member of the Group will)
maintain insurances on and in relation to its business and assets against those
risks and to the extent as is usual for companies carrying on the same or
substantially similar business.

 

27.24.2       All
insurances must be with reputable independent insurance companies or
underwriters.

 

27.24.3       Where
insurances and risks have been identified in the Insurance Report, the Company shall
ensure the insurances maintained are at least in respect of the business and
assets and against the risks and to the extent recommended in the Insurance
Report.

 

27.25          Pensions

 

27.25.1       The Company
shall ensure that all pension schemes operated after the Closing Date by any
member of the Group for the benefit of any of its employees only provide money
purchase benefits, as defined in section 181 of the Pension Schemes Act 1993
and that all contributions, which are payable by any member of the Group under
those pension schemes are duly made and remitted within applicable statutory
time limits. For the avoidance of doubt, no member of the Group shall be
regarded for the purposes of this Clause 27 as operating a pension scheme after
the Closing Date if it has ceased to participate in that scheme on or before
the Closing Date by virtue of the Acquisition.

 

27.25.2       The
Company shall ensure that no action or omission is taken by any member of the
Group in relation to any pension schemes operated after the Closing Date
mentioned in 27.25.1 above which has or is reasonably likely to have a Material
Adverse Effect.

 

118

 

27.25.3       The Company
shall ensure that no member of the Group establishes any defined benefit
occupational pension scheme after the Closing Date.

 

27.25.4       The
Company shall deliver to the Agent at such times as those reports are prepared
in order to comply with the then current statutory or auditing requirements (as
applicable either to the trustees of any relevant schemes or to the Company),
actuarial reports in relation to all pension schemes operated after the Closing
Date mentioned in Clause 27.25.1 above.

 

27.25.5       The Company
shall promptly notify the Agent of any material change in the rate of
contributions to any pension schemes operated after the Closing Date mentioned
in 27.25.1 above paid or required to be paid (by law or otherwise).

 

27.26          Access

 

Each Obligor shall, and the Company shall
ensure that each member of the Group will, (not more than once in every
Financial Year unless the Agent reasonably suspects a Default is continuing or is
likely to occur) permit the Agent and/or the Security Trustee and/or (to the
extent reasonably required) accountants or other professional advisers and
contractors of the Agent or Security Trustee free access at all reasonable
times and on reasonable notice at the risk and cost of the Obligor or Company
to (to the extent that such costs are fair and reasonable) (a) the premises,
assets, books, accounts and records of each member of the Group and (b) meet
and discuss matters with Senior Management and (c) give assistance to the
accountants or other professional advisers and contractors preparing reports
reasonably required by the Agent and/or the Security Trustee provided that the
Agent and/or Security Trustee (as applicable) shall use all reasonable
endeavours to minimise any disruption or inconvenience caused thereby.

 

27.27          Service contracts

 

27.27.1       The Company
must ensure that there is in place in respect of each Obligor and each Material
Company qualified management with appropriate skills.

 

27.27.2       If any of
the Senior Management ceases (whether by reason of death, retirement at normal
retiring age or through ill health or otherwise) to perform his or her duties
(as required under the Service Contracts), the Company must promptly notify the
Agent and inform the Agent of the identity of any replacement.

 

27.28          Intellectual Property

 

Each Obligor shall and the Company shall
procure that each Group member will:

 

119

 

27.28.1       preserve
and maintain the subsistence and validity of the Intellectual Property
necessary for the business of the relevant Group member;

 

27.28.2       use
reasonable endeavours to prevent any infringement in any material respect of
the Intellectual Property;

 

27.28.3       make
registrations and pay all registration fees and taxes necessary to maintain the
Intellectual Property in full force and effect and record its interest in that
Intellectual Property;

 

27.28.4       not use or
permit the Intellectual Property to be used in a way or take any step or omit
to take any step in respect of that Intellectual Property which may materially
and adversely affect the existence or value of the Intellectual Property or
imperil the right of any member of the Group to use such property;

 

27.28.5       not
discontinue the use of the Intellectual Property,

 

where the failure to do so is reasonably
likely to have a Material Adverse Effect.

 

27.29          Amendments

 

No Obligor shall (and the Company shall
ensure that no member of the Group will) amend, vary, novate, supplement,
supersede, waive or terminate any term of a Transaction Document or any other
document delivered to the Agent pursuant to Clauses 4.1 (Initial conditions precedent) or Clause 30
(Changes to the Obligors) or
enter into any agreement with any shareholders of the Company (other than as
set out in the Investment Documents) or any of their Affiliates which is not a
member of the Group except in writing:

 

27.29.1       in
accordance with the provisions of Clause 40 (Amendments
and Waivers) or of the Intercreditor Agreement; or

 

27.29.2       prior to
or on the Closing Date, with the prior written consent of the Original Lenders;
or

 

27.29.3       after the
Closing Date, in a way which:

 

(a)        could not
be reasonably expected materially and adversely to affect the interests of the
Lenders; and

 

(b)        would not
change the date, amount or method of payment of interest or principal on the Subordinated
Debt.

 

120

 

27.29.4       The Company
shall promptly supply to the Agent a copy of any document relating to any of
the matters referred to in Clauses 27.29.1 
to 27.29.3  above.

 

27.30          Financial assistance

 

Each Obligor shall (and the Company shall
procure each member of the Group will) comply in all respects with Sections 151
to 158 of the United Kingdom Companies Act 1985 and any equivalent legislation
in other jurisdictions including in relation to the execution of the
Transaction Security Documents and payment of amounts due under this Agreement.

 

27.31          Group bank accounts

 

The Company shall ensure that:

 

27.31.1       except in
relation to existing banking arrangements in locations where The Governor and
Company of the Bank of Scotland does not maintain a branch offering the
relevant banking services, all bank accounts of the Group shall be opened and
maintained with a Finance Party or an Affiliate of a Finance Party and be
subject to valid Security under the Transaction Security Documents; and

 

27.31.2       any cash
sums in excess of £3,000,000 held in any currency by any member of the Group or
any branch of any member of the Group where such cash sums are not subject to
Transaction Security are transferred to a member of the Group who has provided
Transaction Security over any cash sums held by it as soon as reasonably practicable
follow the cash reaching such limit save where such cash in excess of that
limit is required for the proper operation of the business as determined by the
finance director of the Group or other suitably qualified officer in
consultation with the Agent (both acting reasonably).

 

27.32          Treasury Transactions

 

27.32.1       No Obligor
shall (and the Company will procure that no members of the Group will) enter
into any Treasury Transaction, other than:

 

(a)        spot and
forward delivery foreign exchange contracts entered into in the ordinary course
of business and not for speculative purposes; and

 

(b)        any
Treasury Transaction entered into for the hedging of actual or projected real
exposures arising in the ordinary course of trading activities of a member of
the Group for a period of not more than 24 months and not for speculative
purposes.

 

121

 

27.33          Ring
Fencing Arrangements

 

The Company will:

 

27.33.1       procure
the business of each member of the Parent Group which is not an Obligor is
carried on independently from and at arm’s length to the business carried on by
any Obligor and, in particular, that any services or assets provided  by an Obligor to a member of the Parent Group
which is not an Obligor (or vice-versa) are only provided to the extent require
for the proper operation of the recipient’s business and  on arm’s length terms for full  market consideration payable in cash or on
terms which would apply to any transactions on arm’s length terms in the market
generally;

 

27.33.2       save as
expressly permitted by any other provisions of this Agreement, ensure that no
Obligor shall (without the prior written consent of the Agent, such consent not
to be unreasonably withheld or delayed):

 

(a)        make any
loan, grant any credit or give or permit to subsist any security, guarantee,
indemnity or financial accommodation or liability (whether actual or
contingent) to or for the benefit of any member of the Parent Group  which is not an Obligor; or

 

(b)        make any
cash payments to a member of the Parent Group which is not an Obligor; or

 

(c)        subscribe
for any shares, loan notes, debentures, commercial paper or other financial
instrument issued or proposed to be issued by a member of the Parent Group
which is not an Obligor or underwrite any issue of the same.

 

27.34          Further assurance

 

27.34.1       Each
Obligor shall (and the Company shall procure that each member of the Group
will) promptly do all such acts or execute all such documents (including
assignments, transfers, mortgages, charges, notices and instructions) as the
Security Trustee may reasonably specify and on terms not materially more
onerous than those in the Transaction Security Documents (and in such form as
the Security Trustee may reasonably require in favour of the Security
Trustee or its nominee(s)):

 

(a)        to
perfect the Security created or intended to be created under or evidenced by
the Transaction Security Documents (which may include the execution of a
mortgage, charge, assignment or other Security over all or any of the assets

 

122

 

which are, or are intended to be, the subject
of the Transaction Security) or for the exercise of any rights, powers and
remedies of the Security Trustee or the Finance Parties provided by or pursuant
to the Finance Documents or by law;

 

(b)        to confer
on the Security Trustee or  confer on the
Finance Parties Security over any property and assets of that Obligor located
in any jurisdiction equivalent or similar to the Security intended to be conferred
by or pursuant to the Transaction Security Documents; and/or

 

(c)        to
facilitate the realisation of the assets which are, or are intended to be, the
subject of the Transaction Security.

 

27.34.2       Each
Obligor shall (and the Company shall procure that each member of the Group
shall) take all such action as is available to it (including making all filings
and registrations) as may be necessary for the purpose of the creation,
perfection, protection or maintenance of any Security conferred or intended to
be conferred on the Security Trustee or the Finance Parties by or pursuant to
the Finance Documents.

 

27.35          Publicity

 

The Company shall agree to any reasonable
request from the Agent to publicise details of the transaction contemplated by
the Transaction Documents subject to reasonable notice of the details of the
same provided that no Finance Party may disclose in any publicity any
information not otherwise publicly available.

 

27.36          Conditions
subsequent

 

27.36.1       Subject to
Clause 27.36.1, the Company shall procure that within 40 days of the date of
this Agreement the Initial Singapore Obligor shall:

 

(a)        accede to
this Agreement as an Additional Guarantor and deliver each of the documents
listed in Part II of Schedule 2 (Conditions Precedent);

 

(b)        deliver
to the Security Trustee a fixed and floating charge over all its assets and
undertaking in such form as approved by the Security Trustee (acting
reasonably); and

 

(c)        deliver
all documentation required set out in Part II of Schedule 2 (Conditions Precedent) required in Singapore to follow the
procedures set out in section 76(10) of the Companies Act, Chapter 50
of Singapore in order to enable the

 

123

 

Initial Singapore Obligor to enter into a perform its
obligations under the Finance Documents.

 

27.36.2       In the
event that the Company is unable to comply with the provisions of Clause 27.36.1
within the time limit set out therein, the Margin applicable to the Facility
shall be:

 

(a)        for the
period commencing on the date falling 40 days after the date of this Agreement
until the date falling 90 days after the date of this Agreement, three point
five per cent (3.5%) per annum; and

 

(b)        for the
period commencing on the date falling 90 days after the date of this Agreement
until the provisions of Clause 27.36.1 have been complied with, four per cent
(4%) per annum.

 

28.              EVENTS OF DEFAULT

 

28.1            Each
of the events or circumstances set out in Clause 28.1 to 28.1.19 is an Event of
Default.

 

28.1.1         Non-payment

 

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

 

(a)        its
failure to pay is caused by administrative or technical error; and

 

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

 

28.1.2         Financial covenants and other obligations

 

(a)        Any
requirement of Clause 26 (Financial
covenants) is not satisfied.

 

(b)        There is
a breach of any of the Material Provisions.

 

28.1.3         Other obligations

 

(a)        An
Obligor does not comply with any provision of the Finance Documents (other than
those referred to in Clause 28.1.1 (Non-payment)
and Clause 28.1.2 (Financial covenants and
other obligations)).

 

(b)        No Event
of Default under Clause (a) will occur if the failure to comply is capable
of remedy and is remedied within 15 Business Days or, in the case of a

 

124

 

breach of Clause 27.24 (Insurance),
5 Business Days of the earlier of (a) the Agent giving notice to the
Company or relevant Obligor or (b) the Company or an Obligor becoming
aware of the failure to comply.

 

28.1.4         Misrepresentation

 

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

 

(b)        No Event
of Default under Clause 28.4.1 will occur if the circumstance causing such
breach of representation or statement is capable of remedy and is remedied
within 15 Business Days of the earlier of (a) the Agent giving notice to
the Company or the relevant Obligor or (b) the Company or an Obligor
becoming aware of the breach, by reference to the facts and circumstances
existing on the later date, is not incorrect or misleading in any material
respect when repeated.

 

28.1.5         Cross default

 

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

 

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

 

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

 

(d)        No Event
of Default will occur under this Clause 28.1.5 if the aggregate amount of
Financial Indebtedness or commitment for Financial Indebtedness falling within
Clause (a) to (c) is less than £500,000 (or its equivalent in any
other currency or currencies). This Clause (d) does not apply to any
amounts due or payable under the Subordinated Debt Documents.

 

125

 

28.1.6         Insolvency

 

(a)        An
Obligor is unable or admits inability to pay its debts as they fall due or is
deemed to or declared to be unable to pay its debts under applicable law (excluding
section 123(1)(a) of the Insolvency Act 1986 or any equivalent
provision), suspends or threatens to suspend making payments on any of its
debts or, by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any
of its indebtedness provided that it shall not constitute an Event of Default
if in the reasonable opinion of the Agent the rescheduling of any of its
indebtedness is for a reason unrelated to the insolvency of any Obligor or the
inability of any Obligor to pay its debts.

 

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

 

(c)        A
moratorium is declared in respect of any indebtedness of any Obligor. If a
moratorium occurs, the ending of the moratorium will not remedy any Event of
Default caused by that moratorium.

 

28.1.7         Insolvency proceedings

 

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

 

(i)         the
suspension of payments, a moratorium of any indebtedness, winding-up,
dissolution, administration or reorganisation (by way of voluntary arrangement,
scheme of arrangement or otherwise) of any Obligor other than a solvent
liquidation or reorganisation;

 

(ii)        a
composition, compromise, assignment or arrangement with any creditor of any
Obligor;

 

(iii)       the
appointment of a liquidator (other than in respect of a solvent liquidation of
a member of the Group which is not an Obligor), receiver, administrative
receiver, administrator, compulsory manager or other similar officer in respect
of any member of the Group or any of its assets; or

 

(iv)       enforcement
of any Security over any assets of any Obligor,

 

126

 

or any analogous procedure or step is taken
in any jurisdiction.

 

(b)        Clause (a) shall
not apply to:

 

(i)         any
winding-up petition which is frivolous or vexatious and is discharged, stayed
or dismissed within 21 days (where the jurisdiction is the United Kingdom) or
30 days in any other jurisdiction of commencement or, if earlier, the date on
which it is advertised; or

 

(ii)        any step
or procedure contemplated by paragraph (b) of the definition of Permitted
Transaction.

 

28.1.8         Creditors’ process

 

Any expropriation, attachment, sequestration,
distress or execution or any analogous process in any jurisdiction affects any
asset or assets of an Obligor having an aggregate value of £500,000 (or its
equivalent)  and is not discharged within
30 days.

 

28.1.9         Unlawfulness and invalidity

 

(a)        It is or
becomes unlawful for an Obligor or, in the case of the Intercreditor Agreement,
a member of the Group to perform any of its obligations under the Finance
Documents or any Transaction Security created or expressed to be created or
evidenced by the Transaction Security Documents ceases to be effective or any
subordination created under the Intercreditor Agreement is or becomes unlawful
and such unlawfulness materially and adversely affects the interests of the lenders
under the Finance Documents and the cessation individually or cumulatively
materially and adversely affects the interests of the Lenders under the Finance
Documents.

 

(b)        Any
obligation or obligations of any Obligor under any Finance Documents or any
member of the Group under the Intercreditor Agreement are not (subject to the
Legal Reservations) or cease to be legal, valid, binding or enforceable and the
cessation individually or cumulatively materially and adversely effects the
interests of the Lenders under the Finance Documents and such unlawfulness
materially and adversely affects the interests of the lenders under the Finance
Documents and the cessation individually or cumulatively materially and
adversely affects the interests of the Lenders under the Finance Documents.

 

127

 

(c)        Any
Finance Document ceases to be in full force and effect or any Transaction
Security or any subordination created under the Intercreditor Agreement ceases
to be legal, valid, binding, enforceable or effective or is alleged by a party
to it (other than a Finance Party) to be ineffective and such unlawfulness
materially and adversely affects the interests of the lenders under the Finance
Documents and the cessation individually or cumulatively materially and
adversely affects the interests of the Lenders under the Finance Documents.

 

28.1.10       Intercreditor Agreement

 

(a)        Any party
to the Intercreditor Agreement (other than a Finance Party or an Obligor) fails
to comply with the provisions of, or does not perform its obligations
under, the Intercreditor Agreement; or

 

(b)        a
representation or warranty given by that party in the Intercreditor Agreement
is incorrect in any material respect,

 

and, if the non-compliance or circumstances
giving rise to the misrepresentation are capable of remedy, it is not remedied
within 7 days of the earlier of the Agent giving notice to that party or that
party becoming aware of the non-compliance or misrepresentation and such
non-compliance or circumstance  has or is
reasonably likely to have a Material Adverse Effect.

 

28.1.11       Cessation of business

 

Any member of the Group suspends or ceases to
carry on (or threatens to suspend or cease to carry on) all or a material part of
its business except as a result of a disposal which is a Permitted Disposal or
a Permitted Transaction and such suspension or cessation has or is reasonably
likely to have a Material Adverse Effect.

 

28.1.12       Change of ownership

 

After the Closing Date, an Obligor (other
than the Company) ceases to be a wholly-owned Subsidiary of the Company and the
Company ceases to be a wholly owned subsidiary of the Parent.

 

28.1.13       Change of management

 

Any member of Senior Management  ceases to be employed by the Group  or to devote the time and attention to the
business, trade and offices of the Group or perform the functions required
under the terms of his  Service Contract
and an adequately qualified replacement person has not given a legally binding
acceptance to

 

128

 

an offer of employment within 180 days of
that cessation. This Event of Default shall also apply to any replacement
person as if references in this Clause 28.13 to Senior Management were
references to that replacement person and references to “Service Contract” were
references to the service contract of that person.

 

28.1.14       Audit qualification

 

The Auditors of the Group qualify the audited
annual consolidated financial statements of the Company unless such
qualification is (in the opinion of the Agent) of a technical nature and not
material.

 

28.1.15       Expropriation

 

The authority or ability of any Obligor to
conduct its business as a whole is wholly or substantially curtailed by any
seizure, expropriation, nationalisation, intervention, restriction or other
action by or on behalf of any governmental, regulatory or other authority or
other person in relation to any Obligor or any of its assets.

 

28.1.16       Repudiation and rescission of agreements

 

(a)        An
Obligor (or any other relevant party other than a Finance Party) rescinds or
purports to rescind or repudiates or purports to repudiate a Finance Document
or any of the Transaction Security or evidences an intention to rescind or
repudiate a Finance Document or any Transaction Security.

 

(b)        Any party
to the Acquisition Documents, the Investment Documents, the Intercreditor
Agreement or the Subordinated Loan Documents rescinds or purports to rescind or
repudiates or purports to repudiate any of those agreements or instruments in
whole or in part where to do so has or is reasonably likely to have a
Material Adverse Effect

 

28.1.17       Litigation

 

Any litigation, arbitration, administrative,
governmental, regulatory or other investigations, proceedings or disputes are
commenced or threatened in relation to the Transaction Documents or the
transactions contemplated in the Transaction Documents or against any member of
the Group or its assets which has or is reasonably likely to have a Material
Adverse Effect.

 

129

 

28.1.18       Material adverse change

 

Any event or circumstance occurs which has or
is reasonably likely to have a Material Adverse Effect.

 

28.1.19       Financial assistance

 

The Initial Singapore Obligor fails to comply
with the provisions of Clause 27.36  (Conditions subsequent) within 120 days of the date of this
Agreement.

 

28.2            Acceleration

 

On and at any time after the occurrence of an
Event of Default which is continuing the Agent may, and shall if so directed by
the Majority Lenders, by notice to the Company:

 

28.2.1         cancel
the Total Commitments and/or Ancillary Commitments at which time they shall
immediately be cancelled;

 

28.2.2         declare
that all or part of the Utilisations, together with accrued interest, and
all other amounts accrued or outstanding under the Finance Documents be
immediately due and payable, at which time they shall become immediately due
and payable;

 

28.2.3         declare
that all or part of the Utilisations be payable on demand, at which time
they shall immediately become payable on demand by the Agent on the
instructions of the Majority Lenders;

 

28.2.4         declare
that cash cover in respect of each Letter of Credit is immediately due and
payable at which time it shall become immediately due and payable;

 

28.2.5         declare
that cash cover in respect of each Letter of Credit is payable on demand at
which time it shall immediately become due and payable on demand by the Agent
on the instructions of the Majority Lenders;

 

28.2.6         declare
all or any part of the amounts (or cash cover in relation to those
amounts) outstanding under the Ancillary Facilities to be immediately due and
payable, at which time they shall become immediately due and payable;

 

28.2.7         declare
that all or any part of the amounts (or cash cover in relation to those
amounts) outstanding under the Ancillary Facilities be payable on demand, at
which time they shall immediately become payable on demand by the Agent on the
instructions of the Majority Lenders; and/or

 

130

 

28.2.8         exercise
or direct the Security Trustee to exercise any or all of its rights, remedies,
powers or discretions under the Finance Documents.

 

SECTION 9

 

CHANGES
TO PARTIES

 

29.              CHANGES TO THE LENDERS

 

29.1            Assignments and transfers by the Lenders

 

Subject to this Clause 29, a Lender (the “Existing Lender”) may:

 

29.1.1         assign
any of its rights; or

 

29.1.2         transfer
by novation any of its rights and obligations,

 

under any Finance Document 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 and which is a Qualifying Lender
(the “New Lender”) provided that
the number of Lenders shall not exceed four without the prior consent of the
Company.

 

29.2            Conditions of assignment or transfer

 

29.2.1         An
Existing Lender must consult with the Company for no more than 10 Business Days
before it may make an assignment or transfer in accordance with Clause 29.1
(Assignments and transfers by the Lenders)
unless the assignment or transfer is:

 

(a)        to
another Lender or an Affiliate of a Lender;

 

(b)        to a fund
within the same investor group as the fund which is the Existing Lender; or

 

(c)        made at a
time when an Event of Default is continuing.

 

29.2.2         The
consent of the Issuing Bank is required for any assignment or transfer by an
Existing Lender of any of its rights and/or obligations under the Revolving
Facility.

 

29.2.3         An
assignment will only be effective on:

 

(a)        receipt
by the Agent of written confirmation from the New Lender (in form and
substance satisfactory to the Agent) that the New Lender will assume the same

 

131

 

obligations to the other Finance Parties and
the other Secured Parties as it would have been under if it was an Original
Lender;

 

(b)        the New
Lender entering into the documentation required for it to accede as a party to
the Intercreditor Agreement; and

 

(c)        the
performance by the Agent of all “know your customer” or other checks relating
to any person that it is required to carry out in relation to such assignment
to a New Lender, the completion of which the Agent shall promptly notify to the
Existing Lender and the New Lender.

 

29.2.4         A
transfer will only be effective if the New Lender enters into the documentation
required for it to accede as a party to the Intercreditor Agreement and if the
procedure set out in Clause 29.5 (Procedure
for transfer) is complied with.

 

29.2.5         If:

 

(a)        a Lender
assigns or transfers any of its rights or obligations under the Finance
Documents or changes its Facility Office; and

 

(b)        as a
result of circumstances existing at the date the assignment, transfer or change
occurs, an Obligor would be obliged to make a payment to the New Lender or
Lender acting through its new Facility Office under Clause 18 (Tax gross-up and indemnities) or Clause 19
(Increased Costs),

 

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

 

29.3            Assignment or transfer fee

 

Unless the Agent otherwise agrees and excluding
an assignment or transfer to an Affiliate of a Lender or made in connection
with primary syndication of the Facilities, the New Lender shall, on the date
upon which an assignment or transfer takes effect, pay to the Agent (for its
own account) a fee of £1,500.

 

29.4            Limitation of responsibility of Existing Lenders

 

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

 

132

 

(a)        the
legality, validity, effectiveness, adequacy or enforceability of the
Transaction Documents, the Transaction Security or any other documents;

 

(b)        the
financial condition of any Obligor;

 

(c)        the
performance and observance by any Obligor or any other member of the Group of
its obligations under the Transaction Documents or any other documents; or

 

(d)        the
accuracy of any statements (whether written or oral) made in or in connection
with any Transaction  Document or any
other document,

 

and any representations or warranties implied
by law are excluded.

 

29.4.2         Each New
Lender confirms to the Existing Lender, the other Finance Parties and the
Secured Parties that it:

 

(a)        has made
(and shall continue to make) its own independent investigation and assessment
of the financial condition and affairs of each Obligor and its related entities
in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender or any
other Finance Party in connection with any Transaction Document or the
Transaction Security; and

 

(b)        will
continue to make its own independent appraisal of the creditworthiness of each
Obligor and its related entities whilst any amount is or may be outstanding
under the Finance Documents or any Commitment is in force.

 

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

 

(a)        accept a
re-transfer from a New Lender of any of the rights and obligations assigned or
transferred under this Clause 29; or

 

(b)        support
any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under the Transaction
Documents or otherwise.

 

29.5            Procedure for transfer

 

29.5.1         Subject
to the conditions set out in Clause 29.2 (Conditions
of assignment or transfer) a transfer is effected in accordance with
Clause 29.5.3 below when the Agent executes an otherwise duly completed
Transfer Certificate delivered to it by the Existing

 

133

 

Lender and the New Lender. The Agent shall,
subject to Clause 29.5.2 below, as soon as reasonably practicable after receipt
by it of a duly completed Transfer Certificate appearing on its face to comply
with the terms of this Agreement and delivered in accordance with the terms of
this Agreement, execute that Transfer Certificate.

 

29.5.2         The
Agent shall only be obliged to execute a Transfer Certificate delivered to it
by the Existing Lender and the New Lender once it is satisfied it has complied
with all necessary “know your customer” or
similar other checks under all applicable laws and regulations in relation to
the transfer to such New Lender.

 

29.5.3         On the
Transfer Date:

 

(a)        to the
extent that in the Transfer Certificate the Existing Lender seeks to transfer
by novation its rights and obligations under the Finance Documents and in
respect of the Transaction Security each of the Obligors and the Existing
Lender shall be released from further obligations towards one another under the
Finance Documents and in respect of the Transaction Security and their
respective rights against one another under the Finance Documents and in
respect of the Transaction Security shall be cancelled (being the “Discharged Rights and Obligations”);

 

(b)        each of
the Obligors and the New Lender shall assume obligations towards one another
and/or acquire rights against one another which differ from the Discharged
Rights and Obligations only insofar as that Obligor or other member of the
Group and the New Lender have assumed and/or acquired the same in place of that
Obligor and the Existing Lender;

 

(c)        the
Agent, the Arranger, the Security Trustee, the New Lender, the other Lenders,
the Issuing Bank and any relevant Ancillary Lender shall acquire the same
rights and assume the same obligations between themselves and in respect of the
Transaction Security as they would have acquired and assumed had the New Lender
been an Original Lender with the rights, and/or obligations acquired or assumed
by it as a result of the transfer and to that extent the Agent, the Arranger,
the Security Trustee, the Issuing Bank and any relevant Ancillary Lender and
the Existing Lender shall each be released from further obligations to each
other under the Finance Documents; and

 

(d)        the New
Lender shall become a Party as a “Lender”.

 

134

 

29.6            Copy of Transfer Certificate to Company

 

The Agent shall, as soon as reasonably
practicable after it has executed a Transfer Certificate, send to the Company a
copy of that Transfer Certificate.

 

29.7            Disclosure of information

 

29.7.1         Any
Lender may disclose to any of its Affiliates and any other person:

 

(a)        to (or
through) whom that Lender assigns or transfers (or may potentially assign or
transfer) all or any of its rights and obligations under the Finance Documents;

 

(b)        with (or
through) whom that Lender enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments
are to be made by reference to, the Finance Documents or any Obligor; or

 

(c)        to whom,
and to the extent that, information is required to be disclosed by any applicable
law or regulation; and

 

29.7.2         any
Finance Party may disclose to a rating agency or its professional
advisers, or (with the consent of the Company) any other person,

 

any information about any Obligor, the Group
and the Finance Documents as that Lender or other Finance Party shall consider
appropriate provided that the person to whom the information is to be given has
first entered into a valid and binding Confidentiality Undertaking.

 

30.              CHANGES TO THE OBLIGORS

 

30.1            Assignment and transfers by Obligors

 

No Obligor may assign any of its rights
or transfer any of its rights or obligations under the Finance Documents.

 

30.2            Additional Borrowers

 

30.2.1         Subject
to compliance with the provisions of Clauses 25.9.3  and 25.9.4 
(“Know your customer” checks),
the Company may request that any of its wholly owned Subsidiaries which is
not dormant becomes a Borrower. That Subsidiary shall become a Borrower if:

 

135

 

(a)        the
Majority Lenders approve the addition of that Subsidiary;

 

(b)        the Company
and that Subsidiary deliver to the Agent a duly completed and executed
Accession Letter;

 

(c)        the
Subsidiary is (or becomes) a Guarantor prior to becoming a Borrower;

 

(d)        the Company
confirms that no Default is continuing or would occur as a result of that
Subsidiary becoming an Additional Borrower; and

 

(e)        the Agent
has received all of the documents and other evidence listed in Part II of Schedule 2
 (Conditions Precedent) in
relation to that Additional Borrower, each in form and substance
satisfactory to the Agent.

 

30.2.2         The
Agent shall notify the Company and the Lenders promptly upon being satisfied
that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in Part II of Schedule 2  (Conditions Precedent).

 

30.3            Resignation
of a Borrower

 

30.3.1         In this
Clause 30.3  and 30.5 (Resignation of a Guarantor) “Third Party
Disposal” means the disposal of an Obligor to a person which is not
a member of the Group where that disposal is permitted under Clause 27.15  (Disposals) or
made with the approval of the Majority Lenders (and the Company has confirmed
this is the case).

 

30.3.2         If a Borrower
is the subject of a Third Party Disposal, the Company may request that
such Borrower (other than the Company and the Principal Borrower) ceases to be
a Borrower by delivering to the Agent a Resignation Letter.

 

30.3.3         The
Agent shall accept a Resignation Letter and notify the Company and the other
Finance Parties of its acceptance if:

 

(a)        the Company
has confirmed that no Default is continuing or would result from the acceptance
of the Resignation Letter;

 

(b)        the
Borrower is under no actual or contingent obligations as a Borrower under any
Finance Documents; and

 

(c)        where the
Borrower is also a Guarantor (unless its resignation has been accepted in
accordance with Clause 30.5 (Resignation of
a Guarantor)), its obligations in its capacity as Guarantor continue
to be legal, valid, binding and enforceable and in full force and effect
(subject to the Legal Reservations) and

 

136

 

the amount guaranteed by it as a Guarantor is
not decreased (and the Company has confirmed this is the case).

 

30.3.4         Upon
notification by the Agent to the Company of its acceptance of the resignation
of a Borrower, that company shall cease to be a Borrower and shall have no
further rights or obligations under the Finance Documents as a Borrower except
that the resignation shall not take effect (and the Borrower will continue to
have rights and obligations under the Finance Documents) until the date on
which the Third Party Disposal takes effect.

 

30.3.5         The
Agent may, at the cost and expense of the Company, require a legal opinion from
counsel to the Agent confirming the matters set out in Clause 30.3.1 above and
the Agent shall be under no obligation to accept a Resignation Letter until it
has obtained such opinion in form and substance satisfactory to it.

 

30.4            Additional Guarantors

 

30.4.1         Subject
to compliance with the provisions of Clause 25.9.3 and 25.9.4   (“Know your customer” checks), the Company may request
that any of its Subsidiaries become a Guarantor.

 

30.4.2         The Company
shall procure that any other member of the Group which is a Material Company shall,
as soon as possible after becoming a Material Company, shall become an
Additional Guarantor and grant Security as the Agent may require and shall
accede to the Intercreditor Agreement.

 

30.4.3         A member
of the Group shall become an Additional Guarantor if:

 

(a)        the Company
and the proposed Additional Guarantor deliver to the Agent a duly completed and
executed Accession Letter; and

 

(b)        the Agent
has received all of the documents and other evidence listed in  Part II of Schedule 2 (Conditions Precedent) in relation to that
Additional Guarantor, each in form and substance satisfactory to the
Agent.

 

30.4.4         The
Agent shall notify the Company and the Lenders promptly upon being satisfied
that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in  Part II
of  Schedule 2 (Conditions Precedent).

 

137

 

30.5            Resignation of a Guarantor

 

30.5.1         The Company
may request that a Guarantor (other than the Company or the Principal
Borrower) ceases to be a Guarantor by delivering to the Agent a Resignation
Letter if:

 

(a)        that Guarantor
is being disposed of by way of a Third Party Disposal (as defined in Clause 30.3  (Resignation
of a Borrower)) and the Company has confirmed this is the case; or

 

(b)        all the
Lenders have consented to the resignation of that Guarantor.

 

30.5.2         The Agent
shall accept a Resignation Letter and notify the Company and the Lenders of its
acceptance if:

 

(a)        the Company
has confirmed that no Default is continuing or would result from the acceptance
of the Resignation Letter;

 

(b)        no
payment is due from the Guarantor under Clause 23.1 (Guarantee and indemnity); and

 

(c)        where the
Guarantor is also a Borrower, it is under no actual or contingent obligations
as a Borrower and has resigned and ceased to be a Borrower under Clause  30.3  (Resignation of a Borrower).

 

30.5.3         The
resignation of that Guarantor shall not be effective until the date of the
relevant Third Party Disposal at which time that company shall cease to be a
Guarantor and shall have no further rights or obligations under the Finance
Documents as a Guarantor.

 

30.6            Further
Security

 

30.6.1         The Company
shall procure that:

 

(a)        any
Borrower or Guarantor which has not entered into a Transaction Security
Document shall (unless prohibited by law) within 5 Business Days after being
required to do so by the Agent (acting on the instructions of the Majority
Lenders) execute a Security Document in favour of the Transaction Security Trustee
for the benefit of the Finance Parties:

 

(i)         in
respect of any Borrower or Guarantor incorporated under the laws of England and
Wales over all its assets, business and undertakings; and

 

138

 

(ii)        in
respect of any Borrower or Guarantor incorporated under the laws of a
jurisdiction other than that of England and Wales over the shares in its
Subsidiaries and over bank accounts and over such other assets which it possesses
in respect of which it is possible for Security to be granted over,

 

(in each case,
“Relevant Assets”),

 

as security
for all indebtedness under the Finance Documents and which:

 

A.        creates
security over the Relevant Assets equivalent to the security granted to the
Security Trustee by members of the Group with similar Relevant Assets
incorporated in the same jurisdiction as that Borrower or Guarantor; or

 

B.         if that
Borrower or Guarantor is incorporated in a jurisdiction in which no other
member of the Group is incorporated or in which no other member of the Group
incorporated in the same jurisdiction as that member of the Group with similar
Relevant Assets has granted security, shall be in form and substance
satisfactory to the Security Trustee (acting reasonably); and

 

(b)        the
immediate Holding Company of any such Borrower or Guarantor shall (unless
prohibited by law) execute a Security Document in favour of and in form and
substance satisfactory to the Security Trustee (acting reasonably) over the
entire issued share capital of that Borrower or Guarantor as security for all
indebtedness under the Finance Documents;

 

(c)        if the
Agent so requires, taking into account the cost to benefit of doing so and any
other legal limitations affecting the same, any Material Subsidiary which is a
Guarantor shall grant to the Security Trustee as soon as reasonably practicable
after being required, such further Security over its assets as the Agent shall
reasonably require together with relevant legal opinions relating to the
granting of the same.

 

30.6.2         The Company shall procure that any evidence which the Agent shall
reasonably require of the due execution of any additional Transaction Security
Document pursuant to clause 30.3.5  or
any other provision of this Agreement is provided to the Agent, together with a
legal opinion satisfactory to the Agent.

 

139

 

30.7            Repetition of Representations

 

Delivery of an Accession Letter constitutes
confirmation by the relevant Subsidiary that the representations and warranties
referred to in Clause 24.29 (Times when
representations made) are true and correct in all material respects
in relation to it as at the date of delivery as if made by reference to the
facts and circumstances then existing.

 

140

 

SECTION 10

 

THE
FINANCE PARTIES

 

31.              ROLE OF THE AGENT, THE SECURITY TRUSTEE,
THE ARRANGER, THE ISSUING BANK AND OTHERS

 

31.1            Appointment of the Agent

 

31.1.1         Each of
the other Finance Parties appoints the Agent to act as its agent under and in
connection with the Finance Documents.

 

31.1.2         Each of
the other Finance Parties appoints the Security Trustee to act as security
trustee under and in connection with the Finance Documents.

 

31.1.3         Each of
the other Finance Parties authorises the Agent to exercise the rights, powers,
authorities and discretions specifically given to the Agent under or in
connection with the Finance Documents together with any other incidental
rights, powers, authorities and discretions.

 

31.2            Duties of the Agent

 

31.2.1         The
Agent shall promptly forward to a Party the original or a copy of any document
which is delivered to the Agent for that Party by any other Party.

 

31.2.2         Except
where a Finance Document specifically provides otherwise, the Agent is not
obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party.

 

31.2.3         If the Agent
receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly
notify the other Finance Parties.

 

31.2.4         The
Agent shall promptly forward to the Security Trustee such certification as the Security
Trustee may require from time to time pursuant to Clause 31.17 (Security Trust Provisions).

 

31.2.5         If the
Agent is aware of the non-payment of any principal, interest, commitment fee or
other fee payable to a Finance Party (other than the Agent, the Arranger or the

 

141

 

Security Trustee) under this Agreement it
shall promptly notify the other Finance Parties.

 

31.2.6         The
Agent’s and the Security Trustee’s duties under the Finance Documents are
solely mechanical and administrative in nature.

 

31.3            Role of the Arranger

 

Except as specifically provided in the
Finance Documents, the Arranger has no obligations of any kind to any other
Party under or in connection with any Finance Document.

 

31.4            Role
of the Security Trustee

 

The Security Trustee shall not be an agent of
any Finance Party or any Obligor under or in connection with the Finance Documents.

 

31.5            No fiduciary duties

 

31.5.1         Nothing
in this Agreement constitutes the Agent, the Arranger and/or the Issuing Bank
as a trustee or fiduciary of any other person.

 

31.5.2         None of
the Agent, the Security Trustee, the Arranger, the Issuing Bank or any
Ancillary Lender 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.

 

31.6            Business with the Group

 

The Agent, the Security Trustee, the
Arranger, the Issuing Bank and each Ancillary Lender may accept deposits
from, lend money to and generally engage in any kind of banking or other
business with any member of the Group.

 

31.7            Rights and discretions

 

31.7.1         The
Agent, the Security Trustee and the Issuing Bank may rely on:

 

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

 

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

 

142

 

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

 

(a)        no
Default has occurred (unless it has actual knowledge of a Default arising under
Clause 28.1.1 (Non-payment));

 

(b)        any
right, power, authority or discretion vested in any Party or the Majority
Lenders has not been exercised;  and

 

(c)        any
notice or request made by the Company (other than a Utilisation Request) is
made on behalf of and with the consent and knowledge of all the Obligors.

 

31.7.3         The
Agent and the Security Trustee may engage, pay for and rely on the advice
or services of any lawyers, accountants, surveyors or other experts.

 

31.7.4         The
Agent and the Security Trustee may act in relation to the Finance
Documents through its personnel and agents.

 

31.7.5         The
Agent and the Security Trustee may disclose to any other Party any
information it reasonably believes it has received as agent under this
Agreement.

 

31.7.6         Notwithstanding
any other provision of any Finance Document to the contrary, none of the Agent,
the Arranger, the Security Trustee or the Issuing Bank 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.

 

31.8            Majority Lenders’ instructions

 

31.8.1         Unless a
contrary indication appears in a Finance Document, the Agent and the Security
Trustee shall (i) exercise any right, power, authority or discretion
vested in it as Agent or as Security Trustee, as the case may be, in
accordance with any instructions given to it by the Majority Lenders (or, if so
instructed by the Majority Lenders, refrain from exercising any right, power,
authority or discretion vested in it as Agent or Security Trustee) and (ii) not
be liable for any act (or omission) if it acts (or refrains from taking any
action) in accordance with an instruction of the Majority Lenders.

 

31.8.2         Unless a
contrary indication appears in a Finance Document, any instructions given by
the Majority Lenders will be binding on all the Finance Parties.

 

143

 

31.8.3         The
Agent and the Security Trustee may refrain from acting in accordance with
the instructions of the Majority Lenders (or, if appropriate, the Lenders) until
it has received such security as it may require for any cost, loss or
liability (together with any associated VAT) which it may incur in
complying with the instructions.

 

31.8.4         In the
absence of instructions from the Majority Lenders, (or, if appropriate, the
Lenders) each of the Agent and the Security Trustee may act (or refrain
from taking action) as it considers to be in the best interest of the Lenders.

 

31.8.5         The
Agent is not authorised to act on behalf of a Lender (without first obtaining
that Lender’s consent) in any legal or arbitration proceedings relating to any
Finance Document. This Clause 31.8.5 shall not apply to any legal or
arbitration proceeding relating to the perfection, preservation or protection
of rights under the Transaction Security Documents or enforcement of the
Transaction Security or Transaction Security Documents.

 

31.9            Responsibility for documentation

 

None of the Agent, the Arranger, the Security
Trustee, the Issuing Bank or any Ancillary Lender:

 

31.9.1         is
responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by the Agent, the Arranger,  the Security Trustee, the Issuing Bank, an
Ancillary Lender, an Obligor or any other person given in or in connection with
any Finance Document or the Reports or the transactions contemplated in the
Finance Documents; or

 

31.9.2         is
responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or the Transaction Security or any other
agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with any Finance Document or the Transaction
Security.

 

31.10          Exclusion of liability

 

31.10.1       Without
limiting paragraph 31.10.2 below, none of the Agent, the Security Trustee, the
Issuing Bank, or any Ancillary Lender will be liable for any action taken by it
under or in connection with any Finance Document or the Transaction Security,
unless directly caused by its gross negligence or wilful misconduct.

 

144

 

31.10.2       No Party
(other than the Agent, the Issuing Bank or an Ancillary Lender (as applicable))
may take any proceedings against any officer, employee or agent of the
Agent, the Security Trustee, the Issuing Bank or any Ancillary Lender, in
respect of any claim it might have against the Agent, the Security Trustee, the
Issuing Bank or an Ancillary Lender or in respect of any act or omission of any
kind by that officer, employee or agent in relation to any Finance Document or
any Transaction Document and any officer, employee or agent of the Agent, the
Security Trustee, the Issuing Bank or any Ancillary Lender may rely on
this Clause subject to Clause 1.3 (Third
party rights) and the provisions of the Third Parties Act.

 

31.10.3       Neither the
Agent nor the Security Trustee will be liable (absent negligence or wilful
misconduct) for any delay (or any related consequences) in crediting an account
with an amount required under the Finance Documents to be paid by the Agent or
the Security Trustee  if the Agent or the
Security Trustee, as the case may be,  has taken all necessary steps as soon as
reasonably practicable to comply with the regulations or operating procedures
of any recognised clearing or settlement system used by the Agent  or the Security Trustee for that purpose.

 

31.10.4       Nothing in
this Agreement shall oblige the Agent or the Arranger to carry out any “know
your customer” or other checks in relation to any person on behalf of any
Lender and each Lender confirms to the Agent and the Arranger that it is solely
responsible for any such checks it is required to carry out and that it may not
rely on any statement in relation to such checks made by the Agent or the
Arranger.

 

31.11          Lenders’ indemnity to the Agent and the Security Trustee

 

Each Lender shall (in proportion to its share
of the Total Commitments or, if the Total Commitments are then zero, to its
share of the Total Commitments immediately prior to their reduction to zero)
indemnify the Agent and the Security Trustee, within three Business Days of
demand, against any cost, loss or liability incurred by the Agent  and the Security Trustee (otherwise than by
reason of gross negligence or wilful misconduct) in acting as Agent or, as the
case may be, as the Security Trustee under the Finance Documents (unless
the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

31.12          Resignation of the Agent and the Security Trustee

 

31.12.1       The Agent or
the Security Trustee may resign and appoint one of its Affiliates acting
through an office in the United Kingdom as successor by giving notice to the
Lenders and the Company.

 

145

 

31.12.2       Alternatively
the Agent or the Security Trustee may resign by giving notice to the
Lenders and the Company, in which case the Majority Lenders (after consultation
with the Company) may appoint a successor Agent or, as the case may be,
Security Trustee.

 

31.12.3       If the
Majority Lenders have not appointed a successor Agent  or Security Trustee in accordance with Clause 31.12.2
within 30 days after notice of resignation was given, the Agent (after
consultation with the Company) may appoint a successor Agent  or, as the case may be, the Security
Trustee (acting through an office in the United Kingdom).

 

31.12.4       The
retiring Agent or Security Trustee shall, at its own cost, make available to
the successor Agent or Security Trustee such documents and records and provide
such assistance as the successor Agent or Security Trustee, as the case may be,
may reasonably request for the purposes of performing its functions as
Agent or, as the case may be, Security Trustee under the Finance
Documents.

 

31.12.5       The
resignation notice of the Agent or Security Trustee shall only take effect upon
the appointment of a successor.

 

31.12.6       Upon the
appointment of a successor, the retiring Agent or Security Trustee shall be
discharged from any further obligation in respect of the Finance Documents but
shall remain entitled to the benefit of this Clause 31. Its successor and each
of the other Parties shall have the same rights and obligations amongst
themselves as they would have had if such successor had been an original Party.

 

31.12.7       After
consultation with the Company, the Majority Lenders may, by notice to the Agent
or the Security Trustee, requires it to resign in accordance with Clause 31.12.2
above. In this event, the Agent or, as the case may be, the Security
Trustee shall resign in accordance with Clause 31.12.2 above.

 

31.13          Confidentiality

 

31.13.1       The Agent
(in acting as agent for the Finance Parties) and the Security Trustee (in
acting as Security Trustee for the Finance Parties) shall be regarded as acting
through its agency or administrative division which shall be treated as a
separate entity from any other of its divisions or departments.

 

31.13.2       If
information is received by another division or department of the Agent or the
Security Trustee, it may be treated as confidential to that division or
department and

 

146

 

the Agent or the Security Trustee, as case may be,
shall not be deemed to have notice of it.

 

31.13.3       Notwithstanding
any other provision of any Finance Document to the contrary, neither the Agent or
the Security Trustee nor the Arranger are obliged to disclose to any other
person (i) any confidential information or (ii) any other information
if the disclosure would or might in its reasonable opinion constitute a breach
of any law or a breach of a fiduciary duty.

 

31.14          Relationship with the Lenders

 

31.14.1       The Agent may treat
each Lender as a Lender, entitled to payments under this Agreement and acting
through its Facility Office unless it has received not less than five Business
Days prior notice from that Lender to the contrary in accordance with the terms
of this Agreement.

 

31.14.2       Each
Lender shall supply the Agent with any information required by the Agent in
order to calculate the Mandatory Cost in accordance with Schedule 4  (Mandatory
Cost formula).

 

31.14.3       Each
Lender shall supply the Agent with any information that the Security Trustee may reasonably
specify (through the Agent) as being necessary or desirable to enable the
Security Trustee to perform its functions as Security Trustee. Each Lender
shall deal with the Security Trustee exclusively through the Agent and shall
not deal directly with the Security Trustee.

 

31.15          Credit appraisal by the Lenders, Issuing Bank and Ancillary 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, Issuing Bank and Ancillary Lender confirms to
the Agent, the Security Trustee and the Arranger that it has been, and will
continue to be, solely responsible for making its own independent appraisal and
investigation of all risks arising under or in connection with any Finance
Document including but not limited to:

 

31.15.1       the
financial condition, status and nature of each member of the Group;

 

31.15.2       the
legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and the Transaction Security and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document or the Transaction Security;

 

147

 

31.15.3       whether
that Secured Party 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 Transaction Security, 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;

 

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

 

31.15.5       the right
or title of any person in or to, or the value or sufficiency of any part of
the Charged Property, the priority of any of the Transaction Security or the
existence of any Security affecting the Charged Property.

 

31.16          Reference Banks

 

If a Reference Bank (or, if a Reference Bank
is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender,
the Agent shall (in consultation with the Company) appoint another Lender or an
Affiliate of a Lender to replace that Reference Bank.

 

31.17          Security Trust Provisions

 

31.17.1       The
Security Trustee and each other Finance Party agree that the Security Trustee
shall hold the Charged Property in trust for the benefit of the Finance Parties
on the terms of the Finance Documents.

 

31.17.2       The
Security Trustee shall have all the rights, privileges and immunities which
gratuitous trustees have or may have in England, notwithstanding that it
is entitled to a remuneration.

 

31.17.3       The
Security Trustee may accept without enquiry, requisition, objection or
investigation such title as any Obligor may have to any of the Charged
Property.

 

31.17.4       The
Security Trustee shall not be liable for any failure or omission to perfect or
defect in perfecting, the Security created pursuant to any Security Document
including (1) failure to obtain any Authorisation for the execution,
validity, enforceability or

 

148

 

admissibility in evidence of Security
Document or (2) failure to effect or procure registration of or otherwise
protect or perfect any of the Security created by the Security Documents under
the laws in any territory.

 

31.17.5       The
Security Trustee and every Receiver, Delegate or other similar person appointed
under any of the Security Documents may indemnify itself against any cost,
loss or liability incurred by it in that capacity (otherwise than by reason of
the gross negligence or wilful default of the Security Trustee).

 

31.17.6       To enable
the Security Trustee to make any distribution, it may fix a date as at
which the amount of the total liabilities of the Lenders is to be calculated
and may require, and rely on, a certificate from any Finance party giving
details of any sums due or owing to any Finance Party as at that date and such
other matters as it may think fit.

 

31.17.7       The
Security Trustee shall send copies of all such calculations to each of the
Lenders and shall make the distributions on the basis of such calculations.

 

31.17.8       On the
enforcement of all or any of the Security Documents, the Security Trustee shall
be entitled to deduct from the proceeds of such enforcement its costs, charges
and expenses incurred in connection with such enforcement together with an
amount equal to all sums due to the Agent.

 

31.18          Agent’s
Management Time

 

Following the occurrence of an Event of
Default which is continuing, any amount payable to the Agent under Clause 20.3
(Indemnity to the Agent), Clause 22 (Costs and expenses) and Clause 31.11 (Lenders
indemnity to the Agent and Security Trustee) shall include the cost
of utilising the Agent’s management time or other resources and will be
calculated on the basis of such reasonable daily or hourly rates as the Agent may notify
to the Borrower and the Lenders, and is in addition to any fee paid or payable
to the Agent under Clause 17 (Fees).

 

31.19          Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent
under the Finance Documents the Agent may, after giving notice to that Party,
deduct an amount not exceeding that amount from any payment to that Party which
the Agent would otherwise be obliged to make under the Finance Documents and
apply the amount deducted in or towards satisfaction of the amount owed. For
the purposes of the Finance Documents that Party shall be regarded as having
received any amount so deducted.

 

149

 

31.20          Reliance and engagement letters

 

Each Finance Party and Secured Party confirms
that each of the Arranger and the Agent has authority to accept on its behalf
(and ratifies the acceptance on its behalf of any letters or reports already
accepted by the Arranger or Agent) the terms of any reliance letter or
engagement letters relating to the Reports or any reports or letters provided
by accountants in connection with the Finance Documents or the transactions contemplated
in the Finance Documents and to bind it in respect of those Reports, reports or
letters and to sign such letters on its behalf and further confirms that it
accepts the terms and qualifications set out in such letters.

 

31.21          Intercreditor
Agreement

 

Each Finance Party confirms and agrees that
the Security Trustee has authority to accept on its behalf the terms of the
Intercreditor Agreement and to execute the Intercreditor Agreement in its
capacity as Security Trustee of the Finance Parties and its execution of the
Intercreditor Agreement shall binding upon and enforceable against each Finance
Party.

 

32.              CONDUCT OF BUSINESS BY THE FINANCE
PARTIES

 

No provision of this Agreement will:

 

32.1            interfere
with the right of any Finance Party to arrange its affairs (tax or otherwise)
in whatever manner it thinks fit;

 

32.2            oblige
any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it or the extent, order and manner of any claim; or

 

32.3            oblige
any Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

 

33.              SHARING AMONG THE FINANCE PARTIES

 

33.1            Payments to Finance Parties

 

If a Finance Party (a “Recovering Finance Party”) receives or
recovers any amount from an Obligor other than in accordance with Clause 34 (Payment mechanics) and applies that amount
to a payment due under the Finance Documents then:

 

33.1.1         the
Recovering Finance Party shall, within three Business Days, notify details of
the receipt or recovery, to the Agent;

 

150

 

33.1.2         the
Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Agent and distributed in accordance with
Clause 34 (Payment mechanics),
without taking account of any Tax which would be imposed on the Agent in
relation to the receipt, recovery or distribution; and

 

33.1.3         the
Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the “Sharing
Payment”) equal to such receipt or recovery less any amount which
the Agent determines may be retained by the Recovering Finance Party as
its share of any payment to be made, in accordance with Clause 34.5 (Partial payments).

 

33.2            Redistribution of payments

 

The Agent shall treat the Sharing Payment as
if it had been paid by the relevant Obligor and distribute it between the
Finance Parties (other than the Recovering Finance Party) in accordance with
Clause 34.5 (Partial payments).

 

33.3            Recovering Finance Party’s rights

 

33.3.1         On a
distribution by the Agent under Clause 33.2 (Redistribution
of payments), the Recovering Finance Party will be subrogated to the
rights of the Finance Parties which have shared in the redistribution.

 

33.3.2         If and
to the extent that the Recovering Finance Party is not able to rely on its
rights under paragraph (a) above, the relevant Obligor shall be liable to
the Recovering Finance Party for a debt equal to the Sharing Payment which is
immediately due and payable.

 

33.4            Reversal of redistribution

 

If any part of the Sharing Payment
received or recovered by a Recovering Finance Party becomes repayable and is
repaid by that Recovering Finance Party, then:

 

33.4.1         each
Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 33.2 (Redistribution of
payments) shall, upon request of the Agent, pay to the Agent for
account of that Recovering Finance Party an amount equal to the appropriate part of
its share of the Sharing Payment (together with an amount as is necessary to
reimburse that Recovering Finance Party for its proportion of any interest on
the Sharing Payment which that Recovering Finance Party is required to pay);
and

 

151

 

33.4.2         that
Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

 

33.5            Exceptions

 

33.5.1         This
Clause 33 shall not apply to the extent that the Recovering Finance Party would
not, after making any payment pursuant to this Clause, have a valid and
enforceable claim against the relevant Obligor.

 

33.5.2         A
Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a
result of taking legal or arbitration proceedings, if:

 

(a)        it notified
the other Finance Party of the legal or arbitration proceedings; and

 

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

 

33.6            Ancillary Lenders

 

33.6.1         This
Clause 33 shall not apply to any receipt or recovery by a Lender in its
capacity as an Ancillary Lender at any time prior to service of notice under
Clause 28.2 (Acceleration).

 

33.6.2         Following
service of notice under Clause 28.2 (Acceleration),
this Clause 33 shall apply to all receipts or recoveries by Ancillary Lenders
except in respect of an overdraft facility comprising more than one account
under an Ancillary Facility provided by an Ancillary Lender, in which case this
Clause 33 shall only apply to any surplus receipt or recovery by that Ancillary
Lender after the application of set-off of any liabilities owing to it under
such overdraft facility against credit balances on any account comprised in
such overdraft facility.

 

152

 

SECTION 11

 

ADMINISTRATION

 

34.              PAYMENT MECHANICS

 

34.1            Payments to the Agent

 

34.1.1         On each
date on which an Obligor or a Lender is required to make a payment under a
Finance Document excluding a payment under the terms of an Ancillary Document,
that Obligor or Lender shall make the same available to the Agent (unless a
contrary indication appears in a Finance Document) for value on the due date at
the time and in such funds specified by the Agent as being customary at the
time for settlement of transactions in the relevant currency in the place of
payment.

 

34.1.2         Payment
shall be made to such account in the principal financial centre of the country
of that currency (or, in relation to euro, in a principal financial centre in a
Participating Member State or London) with such bank as the Agent specifies.

 

34.2            Distributions by the Agent

 

Each payment received by the Agent under the
Finance Documents for another Party shall, subject to Clause 34.3 (Distributions to an Obligor) and Clause 34.4
(Clawback) be made available by
the Agent as soon as practicable after receipt to the Party entitled to receive
payment in accordance with this Agreement (in the case of a Lender, for the
account of its Facility Office), to such account as that Party may notify
to the Agent by not less than five Business Days’ notice with a bank in the
principal financial centre of the country of that currency (or, in relation to
euro, in the principal financial centre of a Participating Member State or
London).

 

34.3            Distributions to an Obligor

 

The Agent may (with the consent of the
Obligor or in accordance with Clause 35 (Set-Off))
apply any amount received by it for that Obligor in or towards payment (on the
date and in the currency and funds of receipt) of any amount due from that
Obligor under the Finance Documents or in or towards purchase of any amount of
any currency to be so applied.

 

34.4            Clawback

 

34.4.1         Where a
sum is to be paid to the Agent under the Finance Documents for another Party,
the Agent is not obliged to pay that sum to that other Party (or to enter into
or

 

153

 

perform any related exchange contract)
until it has been able to establish to its satisfaction that it has actually
received that sum.

 

34.4.2         If the
Agent pays an amount to another Party and it proves to be the case that the
Agent had not actually received that amount, then the Party to whom that amount
(or the proceeds of any related exchange contract) was paid by the Agent shall
on demand refund the same to the Agent together with interest on that amount
from the date of payment to the date of receipt by the Agent, calculated by the
Agent to reflect its cost of funds.

 

34.5            Partial payments

 

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

 

(a)        first, in or towards
payment pro rata of any unpaid
fees, costs and expenses of the Agent, the Issuing Bank and the Security
Trustee under those Finance Documents;

 

(b)        secondly, in or towards
payment pro rata of any accrued
interest, fee or commission due but unpaid under those Finance Documents;

 

(c)        thirdly, in or towards
payment pro rata of any principal
due but unpaid under those Finance Documents and any amount due but unpaid
under Clause 7.2 (Claims under a Letter of
Credit) and Clause 7.3 (Indemnities);
and

 

(d)        fourthly, in or towards
payment pro rata of any other sum
due but unpaid under the Finance Documents.

 

34.5.2         The
Agent shall, if so directed by the Majority Lenders, vary the order set out in Clause
34.5.1 (a) to (d) above.

 

34.5.3         Clause  34.5.1 
and 35.2  above will override any
appropriation made by an Obligor.

 

34.6            No set-off by Obligors

 

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

 

154

 

34.7            Business Days

 

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

 

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

 

34.8            Currency of account

 

34.8.1         Subject
to Clauses 34.8.2 to 34.8.5, the Base Currency is the currency of account and
payment for any sum due from an Obligor under any Finance Document.

 

34.8.2         A
repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or
Unpaid Sum shall be made in the currency in which that Utilisation or Unpaid
Sum is denominated on its due date.

 

34.8.3         Each
payment of interest shall be made in the currency in which the sum in respect
of which the interest is payable was denominated when that interest accrued.

 

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

 

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

 

34.9            Change of currency

 

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

 

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

 

(b)        any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of

 

155

 

that currency or currency unit into the
other, rounded up or down by the Agent (acting reasonably).

 

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

 

35.              SET-OFF

 

35.1            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.

 

35.2            Any
credit balances taken into account by an Ancillary Lender when operating a net
limit in respect of any overdraft under an Ancillary Facility shall on
enforcement of the Finance Documents be applied first in reduction of the
overdraft provided under that Ancillary Facility in accordance with its terms.

 

36.              NOTICES

 

36.1            Communications in writing

 

Any communication to be made under or in
connection with the Finance Documents shall be made in writing and, unless
otherwise stated, may be made by fax or letter.

 

36.2            Addresses

 

The address and fax number (and the
department or officer, if any, for whose attention the communication is to be
made) of each Party for any communication or document to be made or delivered
under or in connection with the Finance Documents is:

 

36.2.1         in the
case of the Company or the Company, that identified with its name below;

 

36.2.2         in the
case of each Lender, the Issuing Bank, each Ancillary Lender or any other
Obligor, that notified in writing to the Agent on or prior to the date on which
it becomes a Party; and

 

156

 

36.2.3         in the
case of the Agent or the Security Trustee, that identified with its name below,

 

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

 

36.3            Delivery

 

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

 

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

 

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

 

and, if a particular department or officer is
specified as part of its address details provided under Clause 36.2 (Addresses), if addressed to that
department or officer.

 

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

 

36.3.3         All
notices from or to an Obligor shall be sent through the Agent.

 

36.3.4         Any
communication or document made or delivered to the Company in accordance with
this Clause 36.3 will be deemed to have been made or delivered to each of the
Obligors.

 

36.4            Notification of address and fax number

 

Promptly upon receipt of notification of an
address or fax number or change of address or fax number pursuant to Clause 36.2
(Addresses) or changing its own
address or fax number, the Agent shall notify the other Parties.

 

36.5            Electronic communication

 

36.5.1         Any
communication to be made between the Agent or the Security Trustee and a Lender
under or in connection with the Finance Documents may be made by

 

157

 

electronic mail or other electronic means, if
the Agent, the Security Trustee  and the
relevant Lender:

 

(a)        agree
that, unless and until notified to the contrary, this is to be an accepted form of
communication;

 

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

 

(c)        notify
each other of any change to their address or any other such information
supplied by them.

 

36.5.2         Any
electronic communication made between the Agent and a Lender or the Security
Trustee will be effective only when actually received in readable form and
in the case of any electronic communication made by a Lender to the Agent or
the Security Trustee only if it is addressed in such a manner as the Agent or
Security Trustee shall specify for this purpose.

 

36.6            Use of websites

 

36.6.1         The Company
may satisfy its obligation under this Agreement to deliver any information
in relation to those Lenders (the “Website
Lenders”) who accept this method of communication by posting this
information onto an electronic website designated by the Company and the Agent
(the “Designated Website”) if:

 

(a)        the Agent
expressly agrees (after consultation with each of the Lenders) that it will
accept communication of the information by this method;

 

(b)        both the Company
and the Agent are aware of the address of and any relevant password
specifications for the Designated Website; and

 

(c)        the
information is in a format previously agreed between the Company and the Agent.

 

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

 

158

 

36.6.2         The
Agent shall supply each Website Lender with the address of and any relevant
password specifications for the Designated Website following designation of
that website by the Company and the Agent.

 

36.6.3         The Company
shall promptly upon becoming aware of its occurrence notify the Agent if:

 

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

 

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

 

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

 

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

 

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

 

If the Company notifies the Agent under Clause
36.6.3 (a) or  36.6.3 (e) above,
all information to be provided by the Company under this Agreement after the
date of that notice shall be supplied in paper form unless and until the
Agent and each Website Lender is satisfied that the circumstances giving rise
to the notification are no longer continuing.

 

36.6.4         Any Website
Lender may request, through the Agent, one paper copy of any information
required to be provided under this Agreement which is posted onto the
Designated Website. The Company shall at its own cost comply with any such
request within ten Business Days.

 

36.7            English language

 

36.7.1         Any
notice given under or in connection with any Finance Document must be in
English.

 

36.7.2         All
other documents provided under or in connection with any Finance Document must
be:

 

(a)        in
English; or

 

159

 

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

 

37.              CALCULATIONS AND CERTIFICATES

 

37.1            Accounts

 

In any litigation or arbitration proceedings
arising out of or in connection with a Finance Document, the entries made in
the accounts maintained by a Finance Party are prima
facie evidence of the matters to which they relate.

 

37.2            Certificates and determinations

 

Any certification or determination by a
Finance Party of a rate or amount under any Finance Document is prima facie evidence
of the matters to which it relates.

 

37.3            Day count convention

 

Any interest, commission or fee accruing
under a Finance Document will accrue from day to day and is calculated on the
basis of the actual number of days elapsed and a year of 360 days or, in any
case where the practice in the Relevant Interbank Market differs, in accordance
with that market practice.

 

38.              PARTIAL INVALIDITY

 

If, at any time, any provision of the Finance
Documents is or becomes illegal, invalid or unenforceable in any respect under
any law of any jurisdiction, neither the legality, validity or enforceability
of the remaining provisions nor the legality, validity or enforceability of
such provision under the law of any other jurisdiction will in any way be
affected or impaired.

 

39.              REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in
exercising, on the part of any Finance Party or Secured Party, any right
or remedy under the Finance Documents shall operate as a waiver, nor shall any
single or partial exercise of any right or remedy prevent any further or other
exercise or the exercise of any other right or remedy. The rights and remedies
provided in this Agreement are cumulative and not exclusive of any rights or
remedies provided by law.

 

160

 

 

40.              AMENDMENTS AND WAIVERS

 

40.1            Required consents

 

40.1.1         Subject
to Clause 40.2 (Exceptions) any
term of the Finance Documents may be amended or waived only with the
consent of the Majority Lenders and the Company and any such amendment or
waiver will be binding on all Parties.

 

40.1.2         The
Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this Clause 40.

 

40.1.3         Each
Obligor agrees to any such amendment or waiver permitted by this Clause 40
which is agreed to by the Company. This includes any amendment or waiver which
would, but for this paragraph (c), require the consent of all of the
Guarantors.

 

40.2            Exceptions

 

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

 

(a)        the
definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(b)        an
extension to the date of payment of any scheduled amount of principal or
interest under the Finance Documents;

 

(c)        a
reduction in the Margin or a reduction in the amount of any payment of
principal, interest, fees or commission payable;

 

(d)        a change
in currency of payment of any amount under the Finance Documents;

 

(e)        an
increase in or an extension of any Commitment or the Total Commitments;

 

(f)         a change
to the Borrowers or Guarantors other than in accordance with Clause 30 (Changes to the Obligors);

 

(g)        any
provision which expressly requires the consent of all the Lenders;

 

(h)        Clause 2.2
(Finance Parties’ rights and obligations), Clause 29 (Changes to the Lenders) or this Clause 40;

 

(i)         the nature
or scope of the Charged Property or the manner in which the proceeds of
enforcement of the Transaction Security are distributed;

 

(j)         the
release of any Transaction Security unless permitted under this Agreement or
any other Finance Document or relating to a sale or disposal of an asset

 

161

 

which is the subject of the Transaction
Security where such sale or disposal is expressly permitted under this
Agreement or any other Finance Document;

 

(k)        any amendment
to the order of priority or subordination under the Intercreditor Agreement,

 

shall not be made without the prior consent
of all the Lenders.

 

40.2.2         An
amendment or waiver which relates to the rights or obligations of the Agent,
the Arranger, the Issuing Bank, the Security Trustee or any Ancillary Lender may not
be effected without the consent of the Agent, the Arranger, the Issuing Bank,
the Security Trustee or that Ancillary Lender.

 

41.              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.

 

162

 

SECTION 12

 

GOVERNING
LAW AND ENFORCEMENT

 

42.              GOVERNING LAW

 

This Agreement is governed by English law.

 

43.              ENFORCEMENT

 

43.1            Jurisdiction of English courts

 

43.1.1         The
courts of England have exclusive jurisdiction to settle any dispute arising out
of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute”).

 

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

 

43.1.3         This
Clause 43.1 is for the benefit of the Finance Parties only. As a result, no
Finance Party shall be prevented from taking proceedings relating to a Dispute
in any other courts with jurisdiction. To the extent allowed by law, the
Finance Parties may take concurrent proceedings in any number of
jurisdictions.

 

43.2            Service of process

 

Without prejudice to any other mode of
service allowed under any relevant law, each Obligor (other than an Obligor
incorporated in England and Wales):

 

43.2.1         irrevocably
appoints the Principal Borrower as its agent for service of process in relation
to any proceedings before the English courts in connection with any Finance
Document (and the Principal Borrower by its execution of this Agreement,
accepts that appointment); and

 

43.2.2         agrees
that failure by a process agent to notify the relevant Obligor of the process
will not invalidate the proceedings concerned.

 

43.2.3         If any
person appointed as process agent is unable for any reason to act as agent for
service of process, the Principal Borrower (on behalf of all the Obligors) must
immediately (and in any event within 5 days of such event taking place) appoint
another agent on terms acceptable to the Agent. Failing this, the Agent may appoint
another agent for this purpose.

 

163

 

43.2.4         The Principal
Borrower expressly agrees and consents to the provisions of this Clause 43
and Clause 42 (Governing law).

 

IN WITNESS whereof this Agreement
has been entered into as a deed on the date stated at the beginning of this
Agreement.

 

164

 

SCHEDULE 1

 

THE ORIGINAL PARTIES

 

PART I

 

THE ORIGINAL OBLIGORS

 

	
  Name of Original Borrower

  	
   

  	
  Registration number (or equivalent, if any)

  	
   

  	
  Registered Office

  
	
  Murray International Metals Limited

  	
   

  	
  01241058

  	
   

  	
  95 High Street

  Edgware

  Middlesex

  HA8 7DB

  

 

	
  Name of Original Guarantor

  	
   

  	
  Registration number (or equivalent, if any)

  	
   

  	
  Registered Office

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pipe Acquisition Limited

  	
   

  	
  05501083

  	
   

  	
  160 Queen Victoria Street

  London

  EC4V 4QQ

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Murray International Metals Limited

  	
   

  	
  01241058

  	
   

  	
  95 High Street

  Edgware

  Middlesex

  HA8 7DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pipe Acquisition Finance PLC

  	
   

  	
  05644999

  	
   

  	
  160 Queen Victoria Street

  London

  EC4V 4QQ

  

 

165

 

PART II

 

THE ORIGINAL LENDERS 

 

	
  Name of Original Lender

  	
   

  	
  Revolving Facility Commitment

  
	
   

  	
   

  	
   

  
	
  The Governor and Company of the Bank of
  Scotland

  	
   

  	
  £

  	
  27,000,000

  

 

166

 

SCHEDULE 2

 

CONDITIONS
PRECEDENT

 

PART I

 

CONDITIONS PRECEDENT TO INITIAL UTILISATION

 

1.                OBLIGORS

 

1.1              A
copy of the Constitutional Documents and of the constitutional documents of
each other Original Obligor.

 

1.2              A
copy of a resolution of the board or, if applicable, a committee of the board
of directors of each Original Obligor:

 

1.2.1           approving
the terms of, and the transactions contemplated by, the Transaction Documents
to which it is a party and resolving that it execute, deliver and perform the
Transaction Documents to which it is a party;

 

1.2.2           authorising
a specified person or persons to execute the Finance Documents to which it is a
party on its behalf;

 

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

 

1.2.4           in the
case of an Obligor other than the Company, authorising the Company to act as
its agent in connection with the Finance Documents.

 

1.3              A
specimen of the signature of each person authorised by the resolution referred
to in paragraph 1.2 above in relation to the Finance Documents and related
documents.

 

1.4              A
copy of a resolution signed by all the holders of the issued shares in each
Original Guarantor, approving the terms of, and the transactions contemplated
by, the Finance Documents to which the Original Guarantor is a party.

 

1.5              A
certificate of the Company (signed by a director) confirming that borrowing or
guaranteeing or securing, as appropriate, the Total Commitments would not cause
any borrowing, guarantee, security or similar limit binding on any Original
Obligor to be exceeded.

 

167

 

1.6              A
certificate of an authorised signatory of the Company or other relevant
Original Obligor certifying that each copy document relating to it specified in
this Part I of Schedule 2 is correct, complete and in full force and
effect and has not been amended or superseded as at a date no earlier than the
date of this Agreement.

 

1.7              In
relation to relevant Original Obligors incorporated in England and Wales,
evidence that members of the Group incorporated in England and Wales or
Scotland have done all that is necessary to follow the procedures set out in
Sections 151 to 158 of the Companies Act 1985 (to the extent relevant) in order
to enable each Original Obligor to enter into the Finance Documents and perform its
obligations under the Finance Documents. Such evidence shall include copies of
the resolutions, statutory declarations, board memorandum, auditor’s report and
net assets letter (addressed to the Finance Parties) for each Original Obligor
and copies of the registers of directors and shareholders of the Original
Obligor.

 

2.                TRANSACTION DOCUMENTS

 

2.1              A
copy of each of the Acquisition Documents, the Investment Documents, and the
other Transaction Documents (other than the Finance Documents) executed by the
parties to those documents.

 

2.2              A
copy of each of the Service Contracts.

 

3.                FINANCE DOCUMENTS

 

3.1              The
Intercreditor Agreement executed by the members of the Group party to that
Agreement and the Subordinated Creditors.

 

3.2              This
Agreement executed by the members of the Group party to this Agreement.

 

3.3              The
Fee Letters executed by the Principal Borrower.

 

3.4              A
Utilisation Request in respect of each existing Letter of Credit issued by the
Issuing Bank at the date of this Agreement.

 

3.5              The
following Ancillary Documents:

 

a bilateral facility letter between The Governor
and Company of the Bank of Scotland and the Principal Borrower in the agreed form and
executed by the members of the Group party to that Agreement.

 

3.6              The
Subordinated Loan Documents executed by the Company and other members of the
Group party to those agreements and the Subordinated Creditors.

 

168

 

3.7              At
least two originals of the following Transaction Security Documents in the
agreed form executed by the Original Obligors specified below opposite the
relevant Transaction Security Document:

 

	
  The Company

  	
   

  	
  Debenture incorporating first ranking fixed
  and floating charges over all its assets and undertaking including charge
  over the entire issued share capital in each member of the Group 

  
	
   

  	
   

  	
   

  
	
  Pipe Acquisition Finance PLC

  	
   

  	
  Debenture incorporating first ranking fixed
  and floating charges over all its assets and undertaking including charge
  over the entire issued share capital in each member of the Group

  
	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
  Debenture incorporating first ranking incorporating
  fixed and floating charges over all assets and undertaking including charge
  over the entire issued share capital in each member of the Group

  
	
   

  	
   

  	
   

  
	
  Target 

  	
   

  	
  Singapore law governed first ranking Share
  Pledge over the entire issued share capital in Murray International Metals
  PTE Limited 

  

 

3.8              A
copy of all notices required to be sent under the Transaction Security
Documents duly acknowledged by the addressee.

 

3.9              A
copy of all share certificates, transfers and stock transfer forms or
equivalent duly executed by the relevant Obligor in blank in relation to the
assets subject to or expressed to be subject to the Transaction Security and
other documents of title to be provided under the Transaction Security
Documents.

 

3.10            The
Company Intra-Group Loan Agreement executed by the parties to that Agreement.

 

4.                INSURANCE

 

A letter from Marsh Limited, insurance broker,
dated the date of this Agreement addressed to the Agent, the Arranger, the
Security Trustee and the Lenders listing the insurance policies of the Group
and confirming that they are on risk and that the insurance for the Group at
the date

 

169

 

of this Agreement is at a level acceptable to
the Majority Lenders and covering appropriate risks for the business carried
out by the Group.

 

5.                LEGAL OPINIONS

 

A legal opinion, addressed to the Agent, the
Security Trustee and the Original Lenders a legal opinion of Maclay Murray &
Spens, legal advisers to the Agent and the Arranger as to English law.

 

6.                OTHER DOCUMENTS AND EVIDENCE

 

6.1              Evidence
that any process agent referred to in Clause 43.2 (Service of process), if not an Original Obligor, has
accepted its appointment.

 

6.2              Evidence
that the fees, costs and expenses then due from an Obligor pursuant to Clause 17
(Fees), Clause 17.4 (Fees  payable
in respect of Letters of Credit), Clause 17.5 (Interest, commission and fees on Ancillary Facilities),
Clause 22 (Costs and expenses)
and Clause 18.5 (Stamp taxes)
have been paid or will be paid by the first Utilisation Date.

 

6.3              The
Group Structure Chart which shows the ownership structure of the Group and the
Parent Group assuming the Closing Date has occurred.

 

6.4              The
Budget.

 

6.5              The
Reports.

 

6.6              A
copy, certified by an authorised signatory of the Company to be a true copy, of
the Original Financial Statements of each Obligor.

 

6.7              The
Structure Memorandum.

 

6.8              The
Funds Flow Statement in a form agreed by the Company and the Agent
detailing the proposed movement of funds on or before the Closing Date.

 

6.9              A
Certificate of the Company (signed by a director) detailing the estimated
Acquisition Costs.

 

6.10            A
Certificate of the Company (signed by a director) certifying that:

 

6.10.1         each of
the matters specified in clause 6 of the Acquisition Agreement has been
satisfied or, with the consent of the Agent, waived including payment of the
purchase price which is being paid pursuant to the Subordinated Loan Documents;

 

170

 

6.10.2         no
Acquisition Document has been amended, varied, novated, supplemented, superseded,
waived or terminated except with the consent of the Agent; and

 

6.10.3         the Company
is not aware of any breach of any warranty or any claim under the Acquisition
Agreement which could reasonably be expected in any way to materially and
adversely affect the interests of the Lenders.

 

6.11            A
certificate of the Company (signed by a director) certifying that:

 

6.11.1         the Partnership
Agreement and structural intra-group loans are in full force and effect;

 

6.11.2         the
Investors have subscribed for 2,650,753.93 common units and 26,475.69 preferred
units in the Parent as required by the Partnership Agreement;

 

6.11.3         those 2,650,753.93
common units and 26,475.69 preferred units subscribed for have been issued
fully paid;

 

6.12            as a
result of the above subscriptions or loans the Parent has the sum available to
it of $40,145,000.

 

6.13            Utilisation
Requests relating to any Utilisations to be made on the Closing Date.

 

6.14            Evidence
satisfactory to the Agent of the discharge and release (as appropriate) of all Financial Indebtedness or Security or
guarantees which are not permitted to be outstanding under the terms of this
Agreement.

 

6.15            A
letter of engagement with the Finance Parties from each of:

 

6.15.1         the
authors of the Accountant’s Report duly signed by the parties thereto; and

 

6.15.2         the
Auditors of the Group which will be providing Compliance Certificates, the
later being in agreed form at the date of this Agreement.

 

6.16            A
copy of any other Authorisation or other document, opinion or assurance which
the Agent notifies the Company is necessary or desirable in connection with the
entry into and performance of the transactions contemplated by any Finance
Document or for the validity and enforceability of any Finance Document.

 

6.17            The
opening balance sheet of the Company in the agreed form.

 

6.18            Bank
mandates in favour of the Agent duly completed by each Obligor.

 

171

 

6.19            Compliance
by the Group with the Lenders’ money laundering and know your customer
requirements in respect of the accounts to be opened by the Group.

 

172

 

PART II

 

CONDITIONS PRECEDENT REQUIRED TO BE DELIVERED BY AN ADDITIONAL OBLIGOR

 

1.                An
Accession Letter executed by the Additional Obligor and the Company.

 

2.                A
copy of the constitutional documents of the Additional Obligor.

 

3.                A
copy of a resolution of the board or, if applicable, a committee of the board
of directors of the Additional Obligor:

 

3.1              approving
the terms of, and the transactions contemplated by, the Accession Letter and
the Finance Documents and resolving that it execute, deliver and perform the
Accession Letter and any other Finance Document to which it is party;

 

3.2              authorising
a specified person or persons to execute the Accession Letter and other Finance
Documents on its behalf;

 

3.3              authorising
a specified person or persons, on its behalf, to sign and/or despatch all other
documents and notices (including, in relation to an Additional Borrower, any
Utilisation Request or Selection Notice) to be signed and/or despatched by it
under or in connection with the Finance Documents to which it is a party; and

 

3.4              authorising
the Company to act as its agent in connection with the Finance Documents;

 

4.                A
specimen of the signature of each person authorised by the resolution referred
to in paragraph 3 above.

 

5.                A
copy of a resolution signed by all the holders of the issued shares of the
Additional Guarantor, approving the terms of, and the transactions contemplated
by, the Finance Documents to which the Additional Guarantor is a party.

 

6.                A
copy of a resolution of the board of directors of each corporate shareholder of
each Additional Guarantor approving the terms of the resolution referred to in
paragraph 6 above.

 

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

 

173

 

8.                A
certificate of an authorised signatory of the Additional Obligor certifying
that each copy document listed in this Part II of Schedule 2 is
correct, complete and in full force and effect and has not been amended or
superseded as at a date no earlier than the date of the Accession Letter.

 

9.                If
available, the latest audited financial statements of the Additional Obligor.

 

10.              The
following legal opinions, each addressed to the Agent, the Security Trustee and
the Lenders:

 

10.1            A
legal opinion of the legal advisers to the Agent in England, as to English law
in the form distributed to the Lenders prior to signing the Accession
Letter.

 

10.2            If
the Additional Obligor is incorporated in or has its “centre of main interest” (as
referred to in Clause 24.26 (Centre of main
interests) in a jurisdiction other than England and Wales or is
executing a Finance Document which is governed by a law other than English law,
a legal opinion of the legal advisers to the Agent in the jurisdiction of its
incorporation or “centre of main interest” or, as the case may be, the
jurisdiction of the governing law of that Finance Document (the “Applicable Jurisdiction”) as to the law of
the Applicable Jurisdiction and in the form distributed to the Lenders
prior to signing the Accession Letter.

 

11.              If
the proposed Additional Obligor is incorporated in a jurisdiction other than
England and Wales, evidence that the process agent specified in Clause 43.2 (Service of process), if not an Obligor,
has accepted its appointment in relation to the proposed Additional Obligor.

 

12.              Any
security documents which are required by the Agent executed by the proposed
Additional Obligor.

 

13.              Any
notices or documents required to be given or executed under the terms of those
security documents.

 

14.              An
accession memorandum to the Intercreditor Agreement executed by the Additional
Obligor.

 

15.

 

15.1            If
the Additional Obligor is incorporated in England and Wales or Scotland,
evidence that the Additional Obligor has done all that is necessary (including,
without limitation, by re-registering as a private company) to follow the
procedures set out in Sections 151 to 158 of the Companies Act 1985 in order to
enable that Additional Obligor to enter into the Finance Documents and perform its
obligations under the Finance Documents. Such evidence shall include copies of
the resolutions, statutory declarations, auditor’s report and net assets letter

 

174

 

(addressed to the Finance Parties) for the
Additional Obligor and copies of the registers of directors and shareholders of
the Additional Obligor.

 

15.2            If
the Additional Obligor is not incorporated in England and Wales or Scotland,
such documentary evidence as legal counsel to the Agent may require, that
such Additional Obligor has complied with any law in its jurisdiction relating
to financial assistance or analogous process.

 

175

 

SCHEDULE 3

 

REQUESTS

 

PART IA

 

UTILISATION REQUEST

 

LOANS

 

From:         [Borrower] [Company]*

 

To:             [Agent]

 

Dated:

 

Dear Sirs

 

[Company] –
[             ]
Facility Agreement

dated
[             ]
(the “Facility Agreement”)

 

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

 

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

 

2.1              Borrower:  [             ]

 

2.2              Proposed
Utilisation Date:           [             ]
(or, if that is not a Business Day, the next Business Day)

 

2.3              Currency
of Loan:       [             ]

 

2.4              Amount:    [             ]
or, if less, the Available Facility

 

2.5              Interest
Period:            [             ].

 

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

 

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

 

5.                This
Utilisation Request is irrevocable.

 

176

 

	
  Yours faithfully

  
	
   

  
	
   

  	
   

  	
   

  
	
  authorised signatory for

  

[the Company on behalf of [insert name of relevant Borrower]]/ [insert name of Borrower]*

 

NOTES:

 

*                 Amend
as appropriate. The Utilisation Request can be given by the Borrower or by the Company.

 

177

 

PART IB

 

UTILISATION REQUEST

 

LETTERS OF CREDIT

 

From:         [Borrower] [Company]*

 

To:             [Agent]

 

Dated:

 

Dear Sirs

 

[Company] -
[           ] Facility
Agreement

dated [             ]
(the “Facility Agreement”)

 

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

 

2.                We
wish to arrange for a Letter of Credit to be issued by the Issuing Bank
specified below (which has agreed to do so) on the following terms:

 

2.1              Borrower:  [             ]

 

2.2              Issuing
Bank:              [             ]

 

2.3              Proposed
Utilisation Date:           [             ]
(or, if that is not a Business Day, the next Business Day)

 

2.4              Currency
of Letter of Credit:        [             ]

 

2.5              Amount:    [             ]
or, if less, the Available Facility in relation to the Revolving Facility

 

2.6              Term:         [             ]

 

3.                We
confirm that each condition specified in Clause 6.5.2  (Issue of
Letters of Credit) is satisfied on the date of this Utilisation
Request.

 

4.                We
attach a copy of the proposed Letter of Credit.

 

5.                The
purpose of this proposed Letter of Credit is [                   ].

 

6.                This
Utilisation Request is irrevocable.

 

178

 

	
   

  	
   

  	
   

  
	
  authorised signatory for

  

[the Company on behalf of] [insert name of relevant Borrower]]/[insert name of Relevant Borrower]*

 

NOTES:

 

*                 Amend
as appropriate. The Utilisation Request can be given by the Borrower or by the Company.

 

179

 

SCHEDULE 4

 

MANDATORY COST FORMULA

 

1.                The
Mandatory Cost is an addition to the interest rate to compensate Lenders for
the cost of compliance with (a) the requirements of the Bank of England
and/or the Financial Services Authority (or, in either case, any other
authority which replaces all or any of its functions) or (b) the
requirements of the European Central Bank.

 

2.                On
the first day of each Interest Period (or as soon as possible thereafter) the Agent
shall calculate, as a percentage rate, a rate (the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set
out below. The Mandatory Cost will be calculated by the Agent as a weighted
average of the Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each Lender in the relevant Loan) and will be
expressed as a percentage rate per annum.

 

3.                The
Additional Cost Rate for any Lender lending from a Facility Office in a
Participating Member State will be the percentage notified by that Lender to
the Agent. This percentage will be certified by that Lender in its notice to
the Agent to be its reasonable determination of the cost (expressed as a
percentage of that Lender’s participation in all Loans made from that Facility
Office) of complying with the minimum reserve requirements of the European
Central Bank in respect of loans made from that Facility Office.

 

4.                The
Additional Cost Rate for any Lender lending from a Facility Office in the
United Kingdom will be calculated by the Agent as follows:

 

4.1           in
relation to a sterling Loan:

 

	
  AB + C(B
  – D) + E
  x 0.01

  	
    per cent per annum

  
	
  100 – (A + C)

  

 

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

 

	
  E
  x 0.01

  	
    per cent per annum.

  
	
  300

  

 

Where:

 

A             is the percentage of
Eligible Liabilities (assuming these to be in excess of any stated minimum)
which that Lender is from time to time required to maintain as an interest free
cash ratio deposit with the Bank of England to comply with cash ratio
requirements.

 

180

 

B             is the percentage rate of
interest (excluding the Margin and the Mandatory Cost and, if the Loan is an
Unpaid Sum, the additional rate of interest specified in clause 14.3  (Default interest))
payable for the relevant Interest Period on the Loan.

 

C             is the percentage (if
any) of Eligible Liabilities which that Lender is required from time to time to
maintain as interest bearing Special Deposits with the Bank of England.

 

D             is the percentage rate
per annum payable by the Bank of England to the Agent on interest bearing
Special Deposits.

 

E              is designed to
compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

 

5.                For
the purposes of this schedule:

 

“Eligible Liabilities”
and “Special Deposits” have the meanings
given to them from time to time under or pursuant to the Bank of England Act
1998 or (as may be appropriate) by the Bank of England;

 

“Fees Rules”
means the rules on periodic fees contained in the FSA Supervision Manual
or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits;

 

“Fee Tariffs”
means the fee tariffs specified in the Fees Rules under the activity group
A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount
rate); and

 

“Tariff Base”
has the meaning given to it in, and will be calculated in accordance with, the Fees
Rules.

 

6.                In
application of the above formulae, A, B, C and D will be included in the
formulae as percentages (i.e. 5 per cent will be included in the formula as 5
and not as 0.05). A negative result obtained by subtracting D from B shall be
taken as zero. The resulting figures shall be rounded to four decimal places.

 

7.                If
requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate
of charge payable by that Reference Bank to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of
the Financial Services Authority (calculated for this purpose by that Reference
Bank as being the average of the Fee Tariffs applicable to that Reference Bank
for

 

181

 

that financial year) and expressed in pounds
per £1,000,000 of the Tariff Base of that Reference Bank.

 

8.                Each
Lender shall supply any information required by the Agent for the purpose of
calculating its Additional Cost Rate. In particular, but without limitation,
each Lender shall supply the following information on or prior to the date on
which it becomes a Lender:

 

(a)              the
jurisdiction of its Facility Office; and

 

(b)              any
other information that the Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Agent
of any change to the information provided by it pursuant to this paragraph.

 

9.                The
percentages of each Lender for the purpose of A and C above and the rates of
charge of each Reference Bank for the purpose of E above shall be determined by
the Agent based upon the information supplied to it pursuant to paragraphs 7
and 8 above and on the assumption that, unless a Lender notifies the Agent to
the contrary, each Lender’s obligations in relation to cash ratio deposits and
Special Deposits are the same as those of a typical bank from its jurisdiction
of incorporation with a Facility Office in the same jurisdiction as its
Facility Office.

 

10.              The
Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference
Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all
respects.

 

11.              The
Agent shall distribute the additional amounts received as a result of the
Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each
Lender based on the information provided by each Lender and each Reference Bank
pursuant to paragraphs 3, 7 and 8 above.

 

12.              Any
determination by the Agent pursuant to this schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a
Lender shall, in the absence of manifest error, be conclusive and binding on
all Parties.

 

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

 

182

 

any such determination shall, in the absence
of manifest error, be conclusive and binding on all Parties.

 

183

 

SCHEDULE 5

 

FORM OF
TRANSFER CERTIFICATE

 

To:             [             ]
as Agent

 

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

 

Dated:

 

[Company] – [                  ]  Facility Agreement

dated [                   ] (the “Facility Agreement”)

 

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

 

2.                We
refer to Clause 29.5 (Procedure for transfer):

 

2.1              The
Existing Lender and the New Lender agree to the Existing Lender transferring to
the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule in
accordance with Clause 29.5 (Procedure for
transfer).

 

2.2              The
proposed Transfer Date is
[          ].

 

2.3              The
Facility Office and address, fax number and attention details for notices of
the New Lender for the purposes of Clause 36.2 (Addresses) are set out in the Schedule.

 

3.                The
New Lender expressly acknowledges the limitations on the Existing Lender’s
obligations set out in paragraph (c) of Clause 29.4 (Limitation of responsibility of Existing Lenders).

 

4.                [The
New Lender confirms that the person beneficially entitled to interest payable
to that Lender in respect of an advance under a Finance Document is either:

 

4.1              a
company resident in the United Kingdom for United Kingdom tax purposes;

 

4.2              a
partnership each member of which is:

 

4.2.1           a
company so resident in the United Kingdom; or

 

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

 

184

 

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

 

4.4              a
Treaty Lender.

 

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

 

6.                [Consider
including accession to the Intercreditor Agreement and checklist of steps
necessary for the New Lender to obtain the benefit of the Transaction
Security.]

 

7.                This
Transfer Certificate is governed by English law.

 

185

 

Commitment/rights and obligations to be
transferred

[insert relevant details]

 

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

 

	
  [Existing Lender]

  	
  [New Lender]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

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

 

[Agent]

 

By:

 

186

 

SCHEDULE 6

 

FORM OF ACCESSION LETTER

 

To:             [                   ]
as Agent

 

From:         [Subsidiary] and [Company]

 

Dated:

 

Dear Sirs

 

[Company] – [        ] Facility Agreement

dated [           ] (the “Facility Agreement”)

 

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

 

2.                In
consideration of the Lenders making available or continuing to make available
the Facility, [Subsidiary] agrees
to become an Additional [Borrower]/[Guarantor] with effect from the date of
this Accession Letter and as such Additional [Borrower]/[Guarantor] pursuant to
Clause [30.2 (Additional Borrowers)]/[Clause
30.4 (Additional Guarantors)] of
the Facility Agreement and as a [Company] pursuant to Clause [25] (Transfers) of the Intercreditor Agreement agreed to and
shall be bound by the terms of the Facility Agreement, the Intercreditor
Agreement and the other Finance Documents. [Subsidiary]
is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability
company and registered number
[                   ].

 

3.                [Subsidiary’s] administrative details are
as follows:

 

Address:

 

Fax No.:

 

Attention:

 

4.                This
Accession Letter is governed by English law.

 

[This Guarantor Accession Letter is entered
into by deed.]

 

[Company]     [Subsidiary]

 

187

 

SCHEDULE 7

 

FORM OF RESIGNATION LETTER

 

To:             [                  ] as Agent

 

From:         [resigning Obligor] and [Company]

 

Dated:

 

Dear Sirs

 

[Company] - [             ]
Facility Agreement

dated
[             ]
(the “Facility Agreement”)

 

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

 

2.                Pursuant
to [Clause 30.3 (Resignation of a Borrower)]/[Clause
30.5 (Resignation of a Guarantor)],
we request that [resigning Obligor]
be released from its obligations as a [Borrower]/[Guarantor] under the Facility
Agreement, the Intercreditor Agreement and the Finance Documents.

 

3.                We
confirm that:

 

3.1              no
Default is continuing or would result from the acceptance of this request; and

 

3.2              [             ]***

 

4.                This
letter is governed by English law.

 

	
  [Company]

  	
  [resigning
  Obligor]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

NOTES:

 

**        Amend as
appropriate, e.g. to reflect agreed procedure for payment of proceeds into a
specified account.

 

188

 

***      Insert any
other conditions required by the Facility Agreement.

 

SCHEDULE 8

 

FORM OF COMPLIANCE CERTIFICATE

 

To:             [             ]
as Agent

 

From:         [Company]

 

Dated:

 

Dear Sirs

 

[Company] -
[             ]
Facility Agreement

dated
[             ]
(the “Facility Agreement”)

 

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

 

2.                We
confirm that, without personal responsibility on our part,:

 

[Insert details of covenants to be
certified].

 

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

 

4.                [We
confirm that the following companies constitute Material Companies for the
purposes of the Facility Agreement:
[             ].]

 

	
  Signed

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  Of

  	
  of

  
	
   

  	
   

  	
   

  
	
   

  	
  [Company]

  	
  [Company]

  

 

[insert
applicable certification language]**

 

 

	
   

  	
   

  
	
  for and on behalf of

  
	
  [name of
  Auditors of the Company]***

  

 

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

**   To be agreed
with the Company’s Auditors and the Lenders prior to signing the Agreement.

 

189

 

SCHEDULE 9

 

TIMETABLES

 

	
   

  	
   

  	
  Loans in sterling

  	
   

  	
  Letters of Credit

  	
   

  	
  Loans in othercurrencies

  
	
  Approval as an Optional Currency, if
  required (Clause 4.3 (Conditions relating
  to Optional Currencies)).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  U-5

  10.00 am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agent notifies the Company if a currency is
  approved as an Optional Currency in accordance with Clause 4.3 (Conditions relating to Optional Currencies)
  and of approval has been granted the minimum amount (and, if required by the
  Lenders, integral multiples) for any subsequent utilisation in that currency.

  	
   

  	
   

  	
   

  	
  U-4

  

  10.00 am

  	
   

  	
  U-4

  

  5.00 pm

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation
  Request (Clause 5.1 (Delivery of a
  Utilisation Request) or Clause 6.2 (Delivery
  of a Utilisation Request for Letters of Credit).

  	
   

  	
  U-1
9.30am

  	
   

  	
  U-3

  10.00am
(following agreement on form of Letter of
  Credit)

  	
   

  	
  U-3

  10.00am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agent determines (in relation to a
  Utilisation) the Base Currency Amount of the Loan, if required under Clause
  5.4 (Lenders’ participation).

  	
   

  	
  U-1

  noon

  	
   

  	
   

  	
   

  	
  U-3

  11.00 am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agent notifies the Lenders of the Loan in accordance
  with Clause 5.4 (Lenders’ participation).

  	
   

  	
  U-1

  3.00pm

  	
   

  	
  U-3

  3.00pm

  	
   

  	
  U-3

  11.00 am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agent receives a notification from a Lender
  under Clause 8.2 (Unavailability of a
  currency).

  	
   

  	
  U-1

  5.00pm

  	
   

  	
   

  	
   

  	
  U-3

  3.00 pm

  

 

***  Only applicable if the Compliance Certificate
accompanies the audited financial statements and is to be signed by the Auditors.
To be agreed with the Company’s auditor’s prior to signing the Agreement.

 

190

 

	
  Agent gives notice in accordance with
  Clause 8.2 (Unavailability of a currency)

  	
   

  	
  U-2

  9.30am 

  	
   

  	
   

  	
   

  	
  U-3
5.00 pm

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agent determines amount of the Loan in
  Optional Currency in accordance with Clause 34.9 (Change of currency)

  	
   

  	
  U

  11.00am 

  	
   

  	
   

  	
   

  	
  U-3
11.00am 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR is fixed

  	
   

  	
  Quotation Day as of 11:00 a.m.

  	
   

  	
   

  	
   

  	
  Quotation Day as of

  11:00 a.m.

  

 

	
  “U”

  	
  =

  	
  date of utilisation

  
	
   

  	
   

  	
   

  
	
  “U - X”

  	
  =

  	
  X Business Days prior to date of
  utilisation

  

 

191

 

SCHEDULE 10

 

FORM OF LETTER OF CREDIT

 

To:             [Beneficiary](the “Beneficiary”)

 

Date            

 

Irrevocable Standby
Letter of Credit no. [             ]

 

At the request of
[        ], [Issuing Bank] (the “Issuing
Bank”) issues this irrevocable standby Letter of Credit (“Letter of Credit”) in your favour on the
following terms and conditions:

 

1.                DEFINITIONS

 

In this Letter of Credit:

 

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

 

“Demand”
means a demand for a payment under this Letter of Credit in the form of
the schedule to this Letter of Credit.

 

“Expiry
Date” means
[             ].

 

“Total L/C
Amount” means
[             ].

 

2.                ISSUING BANK’S AGREEMENT

 

2.1              The
Beneficiary may request a drawing or drawings under this Letter of Credit
by giving to the Issuing Bank a duly completed Demand. A Demand must be
received by the Issuing Bank by
[         ] p.m. ([London]
time) on the Expiry Date.

 

2.2              Subject
to the terms of this Letter of Credit, the Issuing Bank unconditionally and
irrevocably undertakes to the Beneficiary that, within [ten] Business Days of
receipt by it of a Demand, it must pay to the Beneficiary the amount demanded
in that Demand.

 

2.3              The
Issuing Bank will not be obliged to make a payment under this Letter of Credit
if as a result the aggregate of all payments made by it under this Letter of
Credit would exceed the Total L/C Amount.

 

192

 

3.                EXPIRY

 

3.1              The
Issuing Bank will be released from its obligations under this Letter of Credit
on the date (if any) notified by the Beneficiary to the Issuing Bank as the
date upon which the obligations of the Issuing Bank under this Letter of Credit
are released.

 

3.2              Unless
previously released under Clause 3.1 above, on
[        ] p.m.([London] time) on
the Expiry Date the obligations of the Issuing Bank under this Letter of Credit
will cease with no further liability on the part of the Issuing Bank
except for any Demand validly presented under the Letter of Credit that remains
unpaid.

 

3.3              When
the Issuing Bank is no longer under any further obligations under this Letter
of Credit, the Beneficiary must return the original of this Letter of Credit to
the Issuing Bank.

 

4.                PAYMENTS

 

All payments under this Letter of Credit
shall be made in [      ] and for value on the
due date to the account of the Beneficiary specified in the Demand.

 

5.                DELIVERY OF DEMAND

 

Each Demand shall be in writing, and, unless
otherwise stated, may be made by letter, fax or telex and must be received
in legible form by the Issuing Bank at its address and by the particular
department or office (if any) as follows:

 

[

 

 

                       ]

 

6.                ASSIGNMENT

 

The Beneficiary’s rights under this Letter of
Credit may not be assigned or transferred.

 

7.                ISP

 

Except to the extent it is inconsistent with
the express terms of this Letter of Credit, this Letter of Credit is subject to
the International Standby Practices (ISP 98), International Chamber of Commerce
Publication No. 590.

 

8.                GOVERNING LAW

 

This Letter of Credit is governed by English
law.

 

193

 

9.                JURISDICTION

 

The courts of England have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Letter of Credit.

 

Yours faithfully

 

[Issuing
Bank]

 

By:

 

 

NOTES:

 

*          This may need
to be amended depending on the currency of payment under the Letter of Credit.

 

194

 

SCHEDULE 11

 

FORM OF DEMAND

 

To:             [ISSUING
BANK]

 

[Date]

 

Dears Sirs

 

Standby Letter of Credit no. [             ]
issued in favour of [BENEFICIARY] (the “Letter of Credit”)

 

We refer to the Letter of Credit. Terms
defined in the Letter of Credit have the same meaning when used in this Demand.

 

1.                We
certify that the sum of [       ] is due
[and has remained unpaid for at least
[             ]
Business Days] [under [set out underlying contract or agreement]]. We therefore
demand payment of the sum of
[             ].

 

2.                Payment
should be made to the following account:

 

Name:

 

Account
Number:

 

Bank:

 

3.                The
date of this Demand is not later than the Expiry Date.

 

Yours faithfully

 

	
  (Authorised Signatory)

  	
  (Authorised Signatory)

  

 

 

For

[BENEFICIARY]

 

195

 

SCHEDULE 12

 

FORM OF CONFIDENTIALITY UNDERTAKING

 

To:

	
   

   

  	
  [insert name of Potential
  Lender]

  

 

Re:              The
Facilit[y/ies]

 

	
  Borrower:

  Amount:

  Agent:

  

 

Dear Sirs

 

We understand that you are considering
participating in the Facilit[y/ies]. In consideration of us agreeing to make
available to you certain information, by your signature of a copy of this
letter you agree as follows:

 

1.           Confidentiality Undertaking  You undertake:

 

(a)             to
keep the Confidential Information confidential and not to disclose it to anyone
except as provided for by paragraph 2 below and to ensure that the Confidential
Information is protected with security measures and a degree of care that would
apply to your own confidential information;

 

(b)            to
keep confidential and not disclose to anyone the fact that the Confidential
Information has been made available or that discussions or negotiations are
taking place or have taken place between us in connection with the
Facilit[y/ies];

 

(c)             to
use the Confidential Information only for the Permitted Purpose;

 

(d)            to
use all reasonable endeavours to ensure that any person to whom you pass any
Confidential Information (unless disclosed under paragraph 2(b) below)
acknowledges and complies with the provisions of this letter as if that person
were also a party to it; and

 

(e)             not
to make enquiries of any member of the Group or any of their officers,
directors, employees or professional advisers relating directly or indirectly
to the Facilit[y/ies].

 

196

 

2.           Permitted Disclosure  We agree that you may disclose
Confidential Information:

 

(a)             to
members of the Participant Group and their officers, directors, employees and
professional advisers to the extent necessary for the Permitted Purpose and to
any auditors of members of the Participant Group;

 

(b)                    (i) where
requested or required by any court of competent jurisdiction or any competent
judicial, governmental, supervisory or regulatory body, (ii) where
required by the rules of any stock exchange on which the shares or other
securities of any member of the Participant Group are listed or (iii) where
required by the laws or regulations of any country with jurisdiction over the
affairs of any member of the Participant Group; or

 

(c)             with
the prior written consent of us and the Borrower.

 

3.           Notification of Required or Unauthorised Disclosure You
agree (to the extent permitted by law) to inform us of the full
circumstances of any disclosure under paragraph 2(b) or upon becoming
aware that Confidential Information has been disclosed in breach of this letter.

 

4.           Return of Copies  If we so request in writing, you shall return
all Confidential Information supplied to you by us and destroy or permanently
erase all copies of Confidential Information made by you and use all reasonable
endeavours to ensure that anyone to whom you have supplied any Confidential
Information destroys or permanently erases such Confidential Information and
any copies made by them, in each case save to the extent that you or the
recipients are required to retain any such Confidential Information by any
applicable law, rule or regulation or by any competent judicial,
governmental, supervisory or regulatory body or in accordance with internal
policy, or where the Confidential Information has been disclosed under
paragraph 2(b) above.

 

5.           Continuing Obligations  The obligations in this letter are continuing
and, in particular, shall survive the termination of any discussions or
negotiations between you and us. Notwithstanding the previous sentence, the
obligations in this letter shall cease (a) if you become a party to or
otherwise acquire (by assignment or sub participation) an interest, direct or
indirect in the Facilit[y/ies] or (b) twelve months after you have
returned all Confidential Information supplied to you by us and destroyed or permanently
erased all copies of Confidential Information made by you (other than any such
Confidential Information or copies which have been disclosed under paragraph 2
above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above,
are not required to be returned or destroyed).

 

6.           No Representation; Consequences of Breach, etc  You acknowledge and agree that:

 

(a)             neither
we nor any of our officers, employees or advisers (each a “Relevant
Person”) (i) make any representation or warranty, express or
implied, as to, or assume any responsibility for, the accuracy, reliability or
completeness of any of the Confidential Information or any other information
supplied by us or any member of the Group or the assumptions on which it is
based or (ii) shall be under any obligation to update or correct any
inaccuracy in the Confidential Information or any other information 

 

197

 

supplied by us or any member of the Group or be otherwise
liable to you or any other person in respect to the Confidential Information or
any such information; and

 

(b)            we
or members of the Group may be irreparably harmed by the breach of the
terms of this letter and damages may not be an adequate remedy; each
Relevant Person or member of the Group may be granted an injunction or
specific performance for any threatened or actual breach of the provisions of
this letter by you.

 

7.           No Waiver; Amendments, etc  This letter sets out the full extent of your
obligations of confidentiality owed to us in relation to the information the
subject of this letter. No failure or delay in exercising any right, power or
privilege under this letter will operate as a waiver thereof nor will any
single or partial exercise of any right, power or privilege preclude any
further exercise thereof or the exercise of any other right, power or
privileges under this letter. The terms of this letter and your obligations
under this letter may only be amended or modified by written agreement
between us.

 

8.           Inside Information  You acknowledge that some or all of the
Confidential Information is or may be price-sensitive information and that
the use of such information may be regulated or prohibited by applicable
legislation relating to insider dealing and you undertake not to use any
Confidential Information for any unlawful purpose.

 

9.           Nature of Undertakings  The undertakings given by you under this
letter are given to us and (without implying any fiduciary obligations on our
part) are also given for the benefit of the Borrower and each other member of
the Group.

 

10.         Third party rights

 

(a)             Subject
to paragraph 6 and paragraph 9 the terms of this letter may be enforced
and relied upon only by you and us and the operation of the Contracts (Rights
of Third Parties) Act 1999 is excluded.

 

(b)            Notwithstanding
any provisions of this letter, the parties to this letter do not require the
consent of any Relevant Person or any member of the Group to rescind or vary
this letter at any time.

 

11.         Governing Law and Jurisdiction  This letter (including the agreement
constituted by your acknowledgement of its terms) shall be governed by and
construed in accordance with the laws of England and the parties submit to the
non-exclusive jurisdiction of the English courts.

 

12.         Definitions  In this letter (including the acknowledgement
set out below):

 

“Confidential Information”
means any information relating to the Borrower, the Group, and the
Facilit[y/ies] including, without limitation, the information memorandum,
provided to you by us or any of our affiliates or advisers, in whatever form,
and includes information given orally and any document, electronic file or any
other way of representing or recording information which contains or is derived
or copied from such information but excludes information that (a) is or
becomes public knowledge other than as a direct or indirect result of any
breach of this letter or (b) is known by you before the date the
information is disclosed to you by us or any of our affiliates or advisers or
is lawfully obtained by you after that date, other than from a source which is
connected with the Group and which, in either case, as 

 

198

 

far as you are aware, has not been obtained
in violation of, and is not otherwise subject to, any obligation of
confidentiality;

 

“Group” means
the Borrower and each of its holding companies and subsidiaries and each
subsidiary of each of its holding companies (as each such term is defined in
the Companies Act 1985);

 

“Participant Group”
means you, each of your holding companies and subsidiaries and each subsidiary
of each of your holding companies (as each such term is defined in the
Companies Act 1985); and

 

“Permitted Purpose”
means considering and evaluating whether to enter into the Facilit[y/ies].

 

Please acknowledge your agreement to the
above by signing and returning the enclosed copy.

 

Yours faithfully

 

 

	
   

  	
   

  
	
  For and on behalf of

  

 

 

[Arranger]

To:             [Arranger]

The
Borrower and each other member of the Group

 

We acknowledge and agree to the above:

	
   

  	
   

  
	
  For and on behalf of

  

 

[Potential Lender]

 

199

 

SCHEDULE 13

 

EXISTING INDEBTEDNESS

 

Permitted Existing Indebtedness

 

	
  Bank

  	
   

  	
  Juridiction

  	
   

  	
  Type
  of Facilities

  	
   

  	
  Base
  Currency in

  which facilties are

  denominated

  	
   

  	
  Total
  Facilities

  Available

  	
   

  
	
  HSBC and its Affiliates

  	
   

  	
  United Arab Emirates

  	
   

  	
  LC’s / Acceptance 

  	
   

  	
  UAE Dirham

  	
   

  	
  35,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Trust Receipts

  	
   

  	
   

  	
   

  	
  35,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Guarantees

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Overdraft

  	
   

  	
   

  	
   

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Loan

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Combined – HSBC limits

  	
   

  	
   

  	
   

  	
  36,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Forex 

  	
   

  	
   

  	
   

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Credit Cards

  	
   

  	
   

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  41,200,000

  	
   

  
	
  Standard Chartered Bank and 

  	
   

  	
  United Arab Emirates

  	
   

  	
  Letters of Credit / Acceptance

  	
   

  	
  UAE Dirham

  	
   

  	
  25,000,000

  	
   

  
	
  its Affiliates

  	
   

  	
   

  	
   

  	
  Trust Receipts

  	
   

  	
   

  	
   

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Overdrafts

  	
   

  	
   

  	
   

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Short term Loans

  	
   

  	
   

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Bills Discounting 

  	
   

  	
   

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Guarantees

  	
   

  	
   

  	
   

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  25,000,000

  	
   

  
	
  HSBC and its Affiliates

  	
   

  	
  Singapore

  	
   

  	
   

  	
   

  	
  US Dollars

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  6,8,000,000

  	
   

  

 

200

 

SCHEDULE 14

 

GROUP STRUCTURE CHART

 

201

 

EXECUTION
PAGES

 

THE COMPANY

 

EXECUTED AS A DEED for and on behalf of:

PIPE ACQUISITION LIMITED

 

	
  By: 

  	
   

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DAVID KEMP

  	
    Director/Secretary

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12 Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  020 7184
  7001

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  David Wallis

  

 

202

 

THE ORIGINAL
BORROWERS

 

EXECUTED AS A DEED for and on behalf of:

MURRAY INTERNATIONAL
METALS LIMITED

 

	
  By:

  	
   

  	
   

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DAVID KEMP

  	
    Director/Secretary

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12 Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  020 7184
  7001

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  David Wallis

  

 

203

 

THE ORIGINAL
GUARANTORS

 

EXECUTED AS A DEED for and on behalf of:

PIPE ACQUISITION LIMITED

 

	
  By:

  	
   

  	
   

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DAVID KEMP

  	
    Director/Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12 Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  020 7184
  7001

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  David Wallis

  

 

 

EXECUTED AS A DEED for and on behalf of:

PIPE ACQUISITION FINANCE PLC

 

	
  By:

  	
   

  	
   

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DAVID KEMP

  	
    Director/Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12 Floor

  

 

204

 

	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax:            020
  7184 7001

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  David Wallis

  

 

EXECUTED
AS A DEED for and on behalf of:

MURRAY INTERNATIONAL METALS LIMITED

 

	
  By:

  	
   

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DAVID KEMP

  	
    Director/Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:               Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12 Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  020 7184
  7001

  
	
   

  	
   

  	
   

  
	
  For the
  attention of:

  	
   

  	
  David Wallis

  

 

205

 

THE ARRANGER

 

EXECUTED AS A DEED for and on behalf of

THE GOVERNOR AND COMPANY OF

THE BANK OF SCOTLAND as Arranger

 

By: CHRIS GOW

 

Authorised Signatory

 

In the presence of :

 

	
  SUZI DOCHERTY

  	
   

  	
  Witness Signature

  
	
   

  	
   

  	
   

  
	
  SUZI DOCHERTY

  	
   

  	
  Witness Name

  
	
   

  	
   

  	
   

  
	
  c/o MMS, ONE
  LONDON

  	
   

  	
  Address

  
	
  WALL,
  LONDON, EC2Y 5AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Acquisition
  Finance

  
	
   

  	
   

  	
  Level 7

  
	
   

  	
   

  	
  155
  Bishopsgate

  
	
   

  	
   

  	
  London EC2M
  3YB

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  0207 012
  9433

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Chris Gow

  
					

 

206

 

THE AGENT

 

EXECUTED AS A DEED for and on behalf of

THE GOVERNOR AND
COMPANY OF

THE BANK OF SCOTLAND as Agent

By: CHRIS GOW

 

Authorised
Signatory

 

In the presence of :

 

 

	
  SUZI DOCHERTY

  	
   

  	
  Witness Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SUZI DOCHERTY

  	
   

  	
  Witness Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o MMS, ONE
  LONDON

  	
   

  	
  Address

  
	
  WALL,
  LONDON, EC2Y 5AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  New Uberior
  House

  
	
   

  	
   

  	
  11 Earl Grey
  Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3 9BN

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 131 659
  0855

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Iain Shearer

  
					

 

207

 

 

THE SECURITY TRUSTEE

 

EXECUTED AS A DEED for and on behalf of

THE GOVERNOR AND
COMPANY OF

THE BANK OF SCOTLAND as Security Trustee

 

 

By: CHRIS GOW

Authorised
Signatory

In the presence of :

 

	
  SUZI DOCHERTY

  	
   

  	
  Witness Signature

  
	
  SUZI DOCHERTY

  	
   

  	
  Witness Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o MMS, ONE
  LONDON

  	
   

  	
  Address

  
	
  WALL,
  LONDON, EC2Y 5AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  New Uberior
  House

  
	
   

  	
   

  	
  11 Earl Grey
  Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3 9BN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 131 659
  0855

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Iain Shearer

  
					

 

208

 

THE
ISSUING BANK

 

EXECUTED
AS A DEED for and on behalf of

THE
GOVERNOR AND COMPANY OF

THE
BANK OF SCOTLAND as Issuing Bank

 

By: CHRIS GOW

Authorised
Signatory

In the presence of :

 

	
  SUZI DOCHERTY

  	
   

  	
  Witness Signature

  
	
  SUZI DOCHERTY

  	
   

  	
  Witness Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o MMS, ONE
  LONDON

  	
   

  	
  Address

  
	
  WALL,
  LONDON, EC2Y 5AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  New Uberior
  House

  
	
   

  	
   

  	
  11 Earl Grey
  Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3 9BN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 131 659
  0855

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Iain Shearer

  
					

 

209

 

THE
LENDERS

EXECUTED
AS A DEED for and on behalf of

THE
GOVERNOR AND COMPANY OF

THE
BANK OF SCOTLAND

 

By: CHRIS GOW

Authorised
Signatory

In the presence of :

 

 

	
  SUZI DOCHERTY

  	
   

  	
  Witness Signature

  
	
  SUZI DOCHERTY

  	
   

  	
  Witness Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o MMS, ONE
  LONDON

  	
   

  	
  Address

  
	
  WALL,
  LONDON, EC2Y 5AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  New Uberior
  House

  
	
   

  	
   

  	
  11 Earl Grey
  Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3 9BN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 131 659
  0855

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Iain Shearer

  
					

 

210Exhibit 10.5

 

ACCESSION LETTER

by way of a Deed

dated 25 January 2006

 

from

MURRAY INTERNATIONAL METALS PTE LIMITED

and

PIPE ACQUISITION LIMITED

To

 

111E GOVERNOR AND COMPANY OF THE BANK OF

SCOTLAND

 

re:

PROJECT PIPE

 

 

To:          The
Governor and Company of the Bank of Scotland as Agent

 

From:      Murray
International Metals Pte Limited (“MIM PTE”)

31
Tuas View Close

Singapore
637469; and

 

Pipe
Acquisition Limited (“PAL”)

160
Queen Victoria Street

London

EC4V
4QQ

 

Dear Sirs

 

Murray International Metals Limited
- £27,000,000 Revolving Credit Facility Agreement dated 16 December 2005 (the “Facility
Agreement”)

 

1.             We
refer to the Facility Agreement. This is an Accession Letter by way of a deed.
Terms defined in the Facility Agreement have the same meaning in this Accession
Letter unless given a different meaning in this Accession Letter.

 

2.             In
consideration of the Lenders making available or continuing to make available
the Facility, MIM PTE agrees to become an Additional Guarantor with effect from
the date of this Accession Letter and as such Additional Guarantor pursuant to
Clause 30.4 (Additional Guarantors) of
the Facility Agreement agreed to and shall be bound by the terms of the
Facility Agreement. MIM PTE is a company duly incorporated under the laws of Singapore
and is a limited liability company and registered number 200201097M.

 

3.             MIM
PTE’s administrative details are as follows:

 

	
  Address:

  	
   

  	
  31 Tuas View Close, Singapore 637469

  
	
   

  	
   

  	
   

  
	
  Fax
  No.:

  	
   

  	
  +65 6223 3336

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Mr. Michael Craig

  

 

4.             This
Accession Letter is governed by English law.

 

5.             This
Accession Letter is executed by way of a Deed this 25 January 2006

 

	
  The COMMON SEAL of MURRAY INTERNATIONAL

  	
  )

  
	
  METALS
  PTE LIMITED was hereunto affixed in the

  	
  )

  
	
  presence of :

  	
  )

  

 

 

Director
MICHAEL CRAIG

 

 

Director
/ Secretary K A COCKBURN

 

 

	
  EXECUTED and DELIVERED
  as a DEED by

  	
  )

  
	
  PIPE ACQUISITION LIMITED acting by:

  	
  )

  

 

 

Director DAVID KEMP

 

 

Director DAVID KEMP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]